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, June 21, 2024.

Chamber members are invited to join weekly legislative update calls hosted by our advocacy team to hear the latest legislative matters concerning our community. Please note, Friday, June 28, will be our last call until September.

KEY TAKEAWAYS FOR YOUR BUSINESS

Local

  • On Monday, June 17, 2024, Mayor Cherelle Parker appointed 35-year department veteran Jeffrey W. Thompson as Philadelphia’s new Fire Commissioner. Thompson will replace Craig Williams, who has been acting Commissioner since January 2024.
  • On Tuesday, June 18, 2024, Mayor Parker signed three public safety bills. One of these aims to curb gun violence by restricting the manufacturing and sale of devices that accelerate semi-automatic guns.
  • On Wednesday, June 12, 2024, Mayor Parker announced her Business Roundtable initiative and the ten subcommittees to support her effort to make Philadelphia more business-friendly. Chamber President and Chief Executive Officer Chellie Cameron will serve on the Chambers Committee Roundtable.
  • The city’s FY25 Budget includes significant funding for Mayor Parker’s green agenda and her commitment to making Philadelphia “the safest, cleanest, greenest big city in the nation.”
  • SEPTA recently launched an enforcement program to address quality of life violations on public transit.

Join the Chamber on June 25, 2024, for our virtual City Hall Connectors: Commerce Director Alba Martinez forum.

Just Announced: The Chamber’s 2024 Annual Meeting will be held on Friday, October 25, 2024. Join our community of regional partners, members, and investors to network, connect, and reflect on our city and region’s progress toward our shared mission of accelerating Greater Philadelphia’s success as a top global destination for business and a leader in inclusive growth. Tables are available for purchase. Contact Maria Flores, Production Director, the Chamber, at mflores@chamberphl.com for more information.

State

  • The Pennsylvania General Assembly will return to Harrisburg next week after a weeklong pause in session. Budget negotiations are expected to intensify as the remaining session days in June become increasingly limited.
  • This week, the House Environmental Resources and Energy Committee held a hearing on hydrogen hubs and climate change.
  • Two House members introduced separate pieces of legislation seeking to investigate and enforce employee misclassification.

Market your business: sponsor one of the Chamber’s advocacy events. Gain exposure and build promising relationships with top-level business professionals, civic leaders, and elected officials. Learn more about our upcoming local, state, and federal advocacy sponsorship opportunities here or contact Tara Orio, Senior Vice President, Membership and Member Engagement, at torio@chamberphl.com. 

DETAILED LEGISLATIVE UPDATE

Local: Updates from Philadelphia’s City Hall

City Council Stated Meeting
City Council is in recess until Labor Day, returning for the first Stated Meeting of FY25 on Thursday, September 5, 2024.

Tax Reform Commission Update
Over the past two years, the Chamber, in partnership with the Inclusive Growth Coalition (IGC), advocated for the most City Wage and BIRT tax reductions in over a decade. During the FY25 Budget cycle, we have continued advocating for increased tax reductions so local businesses can stay, grow, and hire in the City of Philadelphia. In the FY25 Budget that passed on Thursday, June 13, 2024, City Council opted not to adopt continued business tax reductions. Instead, Mayor Parker and Councilmembers will allow the newly recommitted Tax Reform Commission (the Commission) to consider the city’s tax mix and issue subsequent recommendations in Fall 2024, with two public hearings prior.

On Monday, June 17, 2024, the Commission held its first of these scheduled public hearings. The Commission is an advisory panel comprised of 15 appointees from various sectors, including those appointed by City Council, Mayor Cherelle Parker, and the city’s Chambers of Commerce.

The two-hour hearing consisted of testimony delivered by various stakeholders and organizations on a series of panels ranging on topics including Business Attraction and Retention (BIRT & Wage), Property Tax, Equitable Economic Growth, Tax Administration and Compliance, Government Efficiency, and Other Taxes, including but not limited to, parking, beverage, etc.

The Chamber testified at the hearing with the support of 10 stakeholders representing businesses of various sizes and interests who also provided testimony in the key areas mentioned above, offering the historical knowledge from the 2003 Commission Recommendations. Thank you to these participants for their advocacy efforts:

While the hearing was robust, the reoccurring theme among many who testified was the continued need for BIRT and Wage Tax reductions and the importance of not losing the momentum made in the last two years.

Some other key takeaways and highlights from the testimony provided included reference to:

  • NYC, Detroit, and Chicago (peer metros) have all lowered business taxes and experienced significant growth since enacting this reform. – African-American Chamber of Commerce PA – NJ – DE
  • Businesses are moving to the surrounding counties due to the city’s business taxes. – LaPutt Enterprise
  • Client demand calls for a greater presence in Philadelphia, but the tax structure remains the number one barrier. – Empower Construction
  • The low to no business taxes in our suburban counties and offering commercial real estate at half the cost compared to the city allowed companies like AAA, AmeriHealth, and Sunoco to make the financial decision to relocate outside city limits. – Brandywine Realty Trust

City Council Committee Hearing Updates
On Monday, June 17, 2024, the City Council Committee on Labor and Civil Service held a hearing on Mayor Parker’s return-to-office policy. The hearing centered around the Parker Administration’s plan to require all city workers to return to in-person work full-time by Monday, July 15, 2024.

The hearing was tense as hundreds of AFSCME District Council 47 city employees, representing professional and supervisory staff, attended the hearing and testified that the return-to-office policy is subject to collective bargaining and should have been negotiated.

The Chamber supports Mayor Parker, the business community at large, and the city of Philadelphia as we navigate to identify solutions to bring our city back to a place that surpasses where we were pre-pandemic and creates a city where our businesses and our residents can thrive. 

The testimony also highlighted that decreased commuter traffic has significantly impacted SEPTA operations, which depend on ridership from employees commuting daily in and out of the city. This offers a further example of the broader economic impact that could result from not returning to offices on the economic ecosystem and vitality of our neighborhoods.

The business community understands that return-to-office plays an important role in revitalizing our city, which is only at 70% of pre-pandemic levels. Major employers, such as Comcast, FMC, and Independence Blue Cross, have asked employees to return to work in some capacity, and other employers are following their example.

The Chamber is committed to keeping the lines of communication open with member employers and fostering dialogue to understand how they address in-person work to support their employees and the city’s ultimate growth.  

We are also committed to supporting our member businesses of all sizes, emphasizing the small businesses in the commercial corridors who have been particularly impacted. These small businesses continue to struggle due to the lack of patronage from those who work in the city, which is crucial to the city’s overall job market and to providing the amenities that help make our city a great place to live, work, and visit.

Call to Action: Upcoming Stakeholder Meeting
During the final FY24 Stated Meeting on June 13, 2024, with a 15-2 vote (Councilmembers Driscoll and Landau voting nay), City Council passed Bill 240379 despite concerns from the nonprofit community. This bill would end the city’s practice of allowing some departments and agencies to enter into contracts with nonprofits without going through the competitive bidding process.

The Chamber recognizes this legislation impacts many of our nonprofit members and partners. We will hold a stakeholder meeting on Thursday, July 25, 2024, from 1:00 – 2:00 p.m. If you are interested in participating, please contact Ashley Miscevich, Manager, Local Government Advocacy, at amiscevich@chamberphl.com. 

Upcoming Local Advocacy Events 

City Hall Connectors: Commerce Director Alba Martinez
Tuesday, June 25, 2024 | 10:00 AM – 11:00 AM | Virtual Event

2024 Annual Meeting
Friday, October 25, 2024 | 11:00 AM – 1:30 PM | Pennsylvania Convention Center
Tables and sponsorship packages available.

State: Updates from Harrisburg

Budget Talks Slow to Pick Up
The Pennsylvania General Assembly will return to Harrisburg next week after a weeklong pause in session. Budget negotiations are expected to intensify as the remaining session days in June become increasingly limited. Lawmakers are attempting to reach a bipartisan solution ahead of the June 30, 2024, budget deadline. However, it is increasingly likely that those deliberations will extend into the summer. A General Appropriations bill – the legislative vehicle for next year’s budget spending – has yet to be released.

Governor Josh Shapiro has proposed a $48.3 billion budget while calling for approximately $3 billion in reserves from the now $15 billion in budget reserves to help pay for new spending. Republicans have countered the Governor’s proposal by passing legislation in the Senate that would reduce the state’s personal income tax and eliminate the gross receipts tax on consumers’ utility bills. The Republican proposal would cost almost the exact amount the Governor has proposed in increased spending, approximately $3 billion. Meanwhile, the House Republican Policy Committee convened a series of hearings this week highlighting the proposal.

The Chamber is actively advocating for increased funding for basic education, public transit, and key economic development programs, including the proposed site development fund and innovation fund. We support increasing the net operating loss carryforward limit to support start-up activity in our area and raising the state’s minimum wage.

Hydrogen Hub Hearing
The House Environmental Resources and Energy Committee held a hearing this week on hydrogen hubs and climate change. Greater Philadelphia is one of seven hydrogen hubs selected nationally by the US Department of Energy through the Mid-Atlantic Clean Hydrogen Hub (MACH2) proposal. MACH2 anticipates creating 20,800 direct jobs by advancing hydrogen projects without extracting natural gas or fossil fuels. In all, MACH2 aims to achieve a reduction of at least one million metric tons of carbon a year, which is the equivalent of taking 220,000 cars off the roads, by displacing fossil fuels that are currently used in heavy industry, manufacturing, public transportation, agriculture, marine shipping, long-distance trucking, and aviation.

This week, the Chamber partnered with the Delaware Prosperity Partnership and Choose New Jersey to host a spinoff event of the SelectUSA Investment Summit. The spinoff offered a tour of the region for attendees to familiarize them with our hydrogen ecosystem, including education and workforce institutions, R&D centers, suppliers, producers, and end users. Learn more by downloading the Discover the Mid-Atlantic Clean Hydrogen Ecosystem booklet.

Workplace Misclassification Act
Rep. Nick Pisciottano recently introduced HB 2411, legislation providing the Department of Labor and Industry with the power to investigate and issue penalties for failing to properly classify an independent contractor as an employee. According to the co-sponsorship memoranda, the Bill’s sponsor argues that independent contracting plays an important role but is inappropriately used by some employers looking to skirt their obligations for taxes, workers’ compensation, and unemployment.

In addition to HB 2411, Rep. David Delloso introduced HB 2412, legislation that would establish an Employee Misclassification Working Group and permit the Department of Revenue to share tax information with the Department of Labor & Industry to enhance enforcement.

The Chamber is actively exploring the impact of these two bills. Please contact Anselm Sauter, Vice President, Regional Advocacy, the Chamber, at asauter@chamberphl.com if you have any feedback or input on the legislation.

Market your business: sponsor one of the Chamber’s advocacy events. Gain exposure and build promising relationships with top-level business professionals, civic leaders, and elected officials. Learn more about our upcoming local, state, and federal advocacy sponsorship opportunities here or contact Tara Orio, Senior Vice President, Membership and Member Engagement, at torio@chamberphl.com.  

ChamberPHL Political Action Committee
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We invite you to reach out to our advocacy team directly with your questions:

Chamber members are invited to join weekly legislative update calls hosted by our advocacy team to hear the latest legislative matters concerning our community. Please note, Friday, June 28, will be our last call until September.