Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – May 5

Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, May 5, 2023.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest legislative matters concerning our community.

Take Action: Pro-Growth Advocates Needed 
We are nearing the end of the FY24 City Council Budget Hearings, and although public comment during budget hearings has ended, there is still time to testify. 

Please consider providing written testimony and signing onto the Chamber’s petition letter that will be delivered to Council in advance of the budget vote. If you would like to provide testimony, please fill out this FY24 City Budget Testimony Form or contact Ashley Miscevich, Manager, Local Government Advocacy and Engagement, at amiscevich@chamberphl.com with any questions. The completion deadlines have been extended and are outlined on the website. We have resources available to help with testimony.    

We want to remind our members that through our advocacy, in partnership with the valued members of the Inclusive Growth Coalition (IGC) led by the city’s diverse chambers, business tax reductions were ultimately included and passed in the FY23 Budget.  We will continue working with City Council members to champion pro-growth policies while advocating for increased reductions to both the Wage and BIRT taxes during this budget cycle and over the five-year plan.   

We need pro-growth advocates to stand up and have their voices heard! Learn more at www.inclusivegrowthphl.org . 

Senate Fast-Tracks and Passes ‘Commuter Tax Fairness Act”  
In a matter of days, the state Senate passed SB 671, legislation amending the Sterling Act by prohibiting Philadelphia from imposing a wage tax on non-residents physically working outside the city.  The bill could result in up to a $190 million direct revenue loss to the City of Philadelphia.  

Minimum Wage  
Senator Daniel Laughlin (R) released a memo announcing his intention to introduce legislation to increase the minimum wage in Pennsylvania to $15.00 per hour by 2026 and permanently index it to inflation thereafter.  

Senate Confirmations  
This week, the state Senate voted unanimously to confirm three of Governor Shapiro’s nominees to the Department of Aging, Department of Community and Economic Development, and Department of Transportation.  

Join the Chamber  on Tuesday, May 9, 2023, for our in-person Conversation with the Governor, and on Monday, June 5, 2023, for our in-person Pennsylvania Legislative Reception.

Debt Ceiling Deadline Approaches
Treasury Secretary Janet Yellen released a letter this week warning that the date on which the federal government would default on its debt could come as soon as Thursday, June 1, 2023, prompting President Biden to request a meeting on Tuesday, May 9, 2023, with majority and minority leaders from both the House and Senate.  

Bills and Resolutions Introduced 
Councilmember Kenyatta Johnson introduced a resolution calling for hearings to evaluate existing support services for Early Childhood Education and Pre-K Centers and to examine the role of high-quality Early Childhood Education and Pre-K in addressing childhood poverty.  

City Council approved a resolution to adopt the report issued by City Council’s Special Committee on Retention and Recruitment of Municipal Workers. Read the report here.  

Editor’s Note: For the sake of brevity, we don’t report on every bill or resolution that is introduced in City Council. Most of the ordinances introduced are parking regulations, encroachments, land bank dispositions, and other routine administrative bills. For this weekly report, we include bills that may be of general interest to the city’s business and development communities.  

Upcoming City Council Meetings 
On Monday, May 8, 2023, the City Council Committee on Transportation and Public Utilities will hold a hearing to examine the Philadelphia Water Department’s request to increase water, sewer, and stormwater rates and charges and its impact on the citizens of Philadelphia.  

On Monday, May 8, 2023, the City Council Committee on Housing, Neighborhood Development, and The Homeless will hold hearings on the role and responsibilities of Philadelphia’s Landlord-Tenant Officers and the effects of tangled titles and gentrification on Philadelphia neighborhoods.  

On Tuesday, May 9, 2023, the City Council Committee on Public Safety will hold a hearing to examine the open-air drug market and other barriers to clean, safe, crime-free streets in Kensington.  

On Wednesday, May 10, 2023, the City Council Committee on Education will hold a hearing to investigate the use of an independent authority to bond and manage the school facilities modernization that safety calls for and students, parents, teachers, and communities deserve.  

The next City Council Stated Meeting will be held on Thursday, May 11, 2023.  

2023 Primary Election – May 16, 2023 
Less than two weeks to go! As we march towards the Tuesday, May 16, 2023, Primary Election, here is a round-up of who is currently running for Mayor and City Council. For detailed information, please visit the Chamber’s 2023 Election Hub.  

Mayor 
There are nine Democrats and one Republican running for Mayor.   

Democratic Candidates:  

• Warren Bloom, Sr.  
• Amen Brown  
• Jeff Brown  
• James DeLeon  
• Allan Domb  
• Delscia Gray  
• Helen Gym  
• Cherelle Parker  
• Rebecca Rhynhart  

Republican Candidate:  

• David Oh  

City Council At-Large
27 Democrats and six Republicans filed to run for Council At-Large. (Please note that Pennsylvania has closed primary elections, so third-party candidates, including Working Families Party candidate Councilmember Kendra Brooks, will file and run in the November General Election.)  

Democratic Candidates:  

• Nina Ahmad  
• Jalon Alexander  
• Erika Almirón  
• Christopher Gladstone Booth  
• Sherrie Cohen  
• Luz Colón  
• Wayne Dorsey  
• Abu Edwards  
• Katherine Gilmore Richardson  
• Naderah Griffin  
• Ogbonna “Paul” Hagins  
• Jim Harrity  
• Job Itzkowitz  
• John B. Kelly, III 
• Rue Landau  
• Amanda McIllMurray  
• Michelle Prettyman  
• Charles Reyes  
• Melissa Robbins  
• Eryn Santamoor  
• Curtis Segers, III  
• Derwood Selby  
• Qiana Shedrick  
• George Stevenson  
• Isaiah Thomas  
• Donavan West  
• Deshawnda Williams  

Republican Candidates:  

• Frank Cristinzio  
• Gary Grisafi  
• James Hasher  
• Mary Jane Kelly  
• Drew Murray  
• Sam Oropeza 

City Council Districts 
After successful challenges to their opponents’ nominating petitions, Councilmembers Kenyatta Johnson (2), Jamie Gauthier (3), and Curtis Jones, Jr. (4) will now run unopposed in the May Primary. They will join fellow Councilmembers Mark Squilla (1) and Mike Driscoll (6), neither of which had opponents file to run.  

Jeffery “Jay” Young will run unopposed in the 5th Councilmanic District election to replace Council President Darrell Clarke.  

Councilmembers Quetcy Lozada (7), Cindy Bass (8), and Anthony Phillips (9) will all have opponents in May Primary, and Councilmember Brian O’Neill (10) will face a Democratic challenger in the November General Election.  

Take Action : Cast Your Vote
Right now, 20% of voters in Philadelphia remain undecided, making clear what we’ve always known: EVERY VOTE COUNTS. This year’s election is a pivotal moment in the trajectory of our city. If we want the interests of our members and pro-growth advocates to be represented, we need voters to be informed, get engaged, cast their ballots, and spread the word through their networks. With just 11 days until Election Day, make sure you have a plan to vote. Request or return your mail-in ballot, find the location and hours of your polling place and urge your colleagues, families, and neighbors to vote. Mayoral and City Council candidate profiles, voting resources, and polling results are available on The Chamber’s 2023 Election Hub.   

Odds and Ends 
The Philadelphia Food Justice Initiative (PFJI) provides funding to innovative, community-led projects that strengthen Philadelphia’s food assets and opportunities for individual and collective action to further food justice. PFJI prioritizes projects led by Black, brown, and indigenous people, immigrants, people living with disabilities, and people who have lived experience with health injustice. PFJI is seeking proposals for community-led projects that build food justice in Philadelphia. For this round, $500,000 in funding is available for innovative projects aimed at creating more healthy food options in Philadelphia. Non-profit organizations, businesses, cooperatives, and collectives working on food justice are eligible to apply for up to $100,000 for their projects. Applications are due by Friday, May 26, 2023, and there is no minimum grant award. Find out more here. 

On Tuesday, May 1, 2023, the city announced the launch of Philadelphia’s Racial Equity Strategy Dashboard. This new accountability tool will help the city track its progress in achieving racial equity and provide a transparent, accessible way for residents to see the steps the city is taking to eliminate racial disparities in all areas of city government. This dashboard was created by the Mayor’s Office of Diversity, Equity, and Inclusion (ODEI) to embed racial equity into government. In 2020, Mayor Kenney signed Executive Order No. 1-20, which established the city’s Racial Equity Strategy and required all departments to create an initial racial equity action plan by the end of 2023.  View the dashboard and learn more here.  

Questions? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs.

Senate Fast-Tracks and Passes “Commuter Tax Fairness Act”  
The state Senate passed SB 671, legislation amending the Sterling Act by prohibiting Philadelphia from imposing a wage tax on non-residents physically working outside of the city.  The legislation was introduced, passed out of committee, and sent to the state House in a matter of days.  

The bill would override the “convenience of the employer” rule, which states that non-resident employees who are based in Philadelphia are subject to wage tax unless they are working remotely at the convenience of their employer. If working from home becomes purely voluntary and the employer has available office space in the city, Philadelphia treats non-resident wages as taxable, even if such employees elect to work remotely for a significant percentage of the time.    

Further, the wage tax for non-residents who are physically working in the city would remain at 3.44 percent under the bill, but 1 percent could be remitted to the workers’ home municipalities.  

“The City of Philadelphia estimates that prohibiting the city from taxing certain non-resident wages and/or requiring the city to reimburse school districts and municipalities for credits claimed against their local income taxes could result in up to a $190 million revenue loss to the city,” according to a fiscal note completed by the Senate Appropriations Committee.  

Senate Confirmations 
This week, the state Senate voted unanimously to confirm three of Governor Shapiro’s nominees: Jason Kavulich to the Department of Aging; Rick Siger to the Department of Community and Economic Development; and Mike Carroll to the Department of Transportation.  To date, the Senate has confirmed a total of five of the Governor’s appointments.  

Minimum Wage 
Senator Daniel Laughlin (R), Chair of the Senate Majority Policy Committee, released a memo announcing his intention to introduce legislation in the near future to increase the minimum wage in Pennsylvania to $15.00 per hour by 2026 and permanently index it to inflation thereafter. It will also include language to set the tipped wage in Pennsylvania to 40% of the minimum wage. The proposed schedule for the increase in the minimum wage in Pennsylvania would be as follows:  

1. $11.00 per hour, effective January 1, 2024 
2. $13.00 per hour, effective January 1, 2025 
3. $15.00 per hour, effective January 1, 2026 

The memo comes after Governor Shapiro’s earlier call for an increase in Pennsylvania’s minimum wage to $15.00 per hour by 2024.   

House Bills Advance 
The House passed House Bill 950, legislation proposing an amendment to the Constitution of the Commonwealth of Pennsylvania guaranteeing workers’ rights to organize and collectively bargain. Constitutional changes must appear as a ballot question after approval from state lawmakers in two consecutive legislative sessions.  

The House Commerce Committee approved House Bill 577, legislation establishing the Keystone Saves Program. This voluntary employee retirement savings program would expand access to private sector individual retirement accounts (IRA) to the over two million Pennsylvania workers who currently have no access to employer-provided retirement programs.  

Shapiro Signs First Bill as Governor
Governor Shapiro signed the first bill of his Administration – Act 1 of 2023 (Senate Bill 8), legislation that would require insurers to cover the cost of early-detection genetic testing to screen for breast cancer.   

Upcoming State Advocacy Events

A Conversation with the Governor 
Tuesday, May 9, 2023 | 4:30 PM – 7:30 PM | The John and Joan Mullen Center for the Performing Arts at Villanova University 

Pennsylvania Legislative Reception
Monday, June 5, 2023 | 4:00 PM – 7:00 PM | Keystone Building, Hearing Room 1, Harrisburg

Questions? Contact Anselm Sauter (asauter@chamberphl.com) for more information about state legislative affairs.

This week, the House was on a brief recess, and the Senate was in session.  

Debt Ceiling Deadline Approaches
Treasury Secretary Janet Yellen this week released a letter warning that the “X-date” on which the federal government would default on its debt could come as soon as Thursday, June 1, 2023, far earlier than other analyses released to this point. After a months-long stalemate, this new warning led President Biden to request a meeting on Tuesday, May 9, 2023, with House Speaker Kevin McCarthy, House Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer, and Senate Minority Leader Mitch McConnell to discuss the debt limit.  

Leaders in each chamber are seeking their own solutions in the case that negotiations between the “Big Four” and President Biden do not move quickly enough. Senator Schumer has started the process to bring two pieces of legislation – a Democratic plan to suspend the debt ceiling through the end of 2024 and the House Republicans’ Limit, Save, Grow Act of 2023 – to the Senate floor for potential votes. In the House, Minority Leader Jeffries is pursuing a discharge petition to allow for the consideration of a “standalone debt limit hike” on the floor. To be successful in this endeavor, Jeffries will need a simple majority of members to sign on, meaning a minimum of five House Republicans would need to support this approach in addition to all House Democrats.  

There are only eight days remaining in advance of the potential Thursday, June 1, 2023, “X-date” when both chambers are in session and able to organize around this issue.  

Preliminary House Appropriations Calendar Released
House Appropriations Chair Kay Granger shared this week a preliminary schedule for House Appropriations markups ranging from Wednesday, May 17, 2023, to Thursday, June 15, 2023. The schedule as it currently stands shows that subcommittee markups will occur May 17-18, 2023, and June 7-8, 2023, while full committee markups will be held May 23-25, 2023, and June 13-15, 2023.  

The House Budget Committee is expected to set topline discretionary spending at Fiscal Year 2022 levels in accordance with the Limit, Save, Grow Act of 2023 which passed the House in April.  

Odds and Ends
The Federal Reserve Bank this week increased interest rates for the tenth time in just over one year. The 0.25 percentage point increase is expected to be the last increase from the Fed for the foreseeable future, but it remains unclear when cuts could begin. The full statement can be found here.  

Representative Chrissy Houlahan (D-PA) and Senator Chris Coons (D-DE) put forth bicameral and bipartisan legislation this week in their reintroduction of the Research Advancing to Market Production (RAMP) for Innovators Act. According to a release from Representative Houlahan’s office, the Act would “support American innovation by expediting the application process” for two small business programs:  Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). More information on the RAMP for Innovators Act can be found here. 

Questions? Contact Renee Androckitis (randrockitis@chamberphl.com) for more information about federal legislative affairs.

ChamberPHL Political Action Committee
Help us advance the business community’s agenda by contributing to support state and local candidates in key elections who share our commitment to a healthier business climate.

We invite you to reach out to our advocacy team directly with your questions:

• Renee Androckitis, Federal Affairs – randrockitis@chamberphl.com
• Anselm Sauter, State Affairs – asauter@chamberphl.com
• William Carter, Local Affairs – wcarter@chamberphl.com

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team.