Legislative Updates: A Roundup of State and Local Actions – December 18

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 Thursday, December 18, 2025.

• The final session of Council was held on Thursday, December 11, 2025, where several bills were passed and are headed to Mayor Cherelle Parker’s desk for approval. City Council will be in recess until Thursday, January 22, 2026. 

• City Council passed Councilmember Thomas’ Security Officer Training Ordinance, which establishes citywide minimum training requirements for private security officers and creates a standardized enforcement framework. The Chamber actively engaged throughout the legislative process to narrow the scope of the bill and reduce unnecessary costs and operational burdens for employers. Several Chamber-supported amendments were incorporated prior to final passage, resulting in a more targeted, practical, and significantly less burdensome ordinance than earlier versions. 

• The PhillySaves Auto-IRA legislative package, sponsored by Council President Johnson, passed unanimously with multiple employer-facing amendments reflecting stakeholder feedback related to compliance timelines, notice requirements, and program administration. The Chamber provided public comment in support of the legislation, underscoring its potential to advance economic mobility and long-term financial security for workers, while also emphasizing the importance of collaboration, clarity, and ongoing employer engagement as the program moves toward implementation. 

• Council passed Councilmember Landau’s sidewalk café legislation, which modernizes and streamlines outdoor dining regulations to support small businesses and commercial corridor vitality. The Chamber testified in support of the bill, highlighting its role in reducing red tape, supporting business growth, and helping create a more vibrant and welcoming city ahead of major events in 2026. 

• President Trump recently signed an Executive Order to limit state-level AI regulations that conflict with federal priorities. Pennsylvania Attorney General Dave Sunday said that he would defend any artificial intelligence regulations passed by the Pennsylvania General Assembly from Trump Administration efforts to preempt them. Both Pennsylvania Senate and House Communications & Technology Committee Chairs issued separate statements asserting the ability of state legislatures to address issues as they arise. 
• Following enactment of legislation in July 2024, Pennsylvania is gradually phasing in a higher Net Operating Loss (NOL) operating loss carry forward limits from 40% to 80% by tax year 2029. House Bill 1129 would allow early-stage biotech and technology companies to sell their unused NOLs to create increased capital.

Sidewalk Cafés 

City Council passed Councilmember Landau’s Sidewalk Café ordinance (Bill No. 251022), which modernizes and standardizes rules governing outdoor dining across the city. As amended, the final bill: 

• Expands and clarifies where sidewalk cafés are permitted, including additional commercial corridors, council districts, and select Special Services and Business Improvement Districts. 

• Establishes clear, consistent pedestrian clearance standards, requiring a minimum of five feet of clear sidewalk on narrower sidewalks and at least half of the sidewalk width on wider sidewalks, while maintaining ADA accessibility. 

• Allows limited use of adjacent sidewalk frontage with property owner permission, subject to City approval. 

• Updates operating hours for sidewalk cafés in certain areas. 

• Strengthens enforcement provisions, including clearer penalties for violations and repeat offenses. 

During the Stated Meeting on Thursday, December 11, 2025, the Chamber provided public comment in support of the legislation, citing the importance of clear, predictable permitting standards that support small businesses, enhance commercial corridor vitality, and help create a welcoming, pedestrian-friendly city as Philadelphia prepares for major events in 2026. 

Security Training 

City Council passed Councilmember Thomas’ Security Officer Training Ordinance (Bill No. 250646), which establishes citywide minimum training requirements for private security officers and creates a standardized enforcement framework across sectors employing security personnel. Prior to final passage, Council adopted a series of substantive amendments that narrowed the scope of the legislation, adjusted employer obligations, and introduced additional procedural protections for security employees. Our Legislative Update from Friday, December 5, 2025, provides a summary of additional amendments that were introduced prior to passage. 

The Chamber actively engaged throughout the legislative process to narrow the scope of the bill and reduce unnecessary costs and operational burdens for employers, which directly informed several of the amendments adopted prior to final passage. While not all Chamber recommendations were incorporated, the final ordinance represents a significant improvement over earlier versions and is more targeted, practical, and feasible for employers to implement. 

Looking ahead, the Chamber plans to host a virtual program for employers to support compliance and implementation. We are seeking more immediate clarity on how employers become certified or approved by the City to provide training, and how the 12-hour training grandfathering provision will be administered in practice. If you have any questions on this legislation, please contact Ashley Miscevich at amiscevich@chamberphl.com.  

PhillySaves Auto-IRA Program 

City Council passed the Philadelphia Auto-IRA Program (“PhillySaves”), a municipally administered retirement savings program designed to expand access to retirement accounts for private-sector workers without employer-sponsored plans. The program will automatically enroll eligible employees at a default contribution rate of 3–6 percent, subject to full opt-out, and requires employers only to facilitate payroll deductions. Accounts will be portable and overseen by the Philadelphia Retirement Savings Board. 

As enacted, the program requires authorization of the Retirement Savings Board through a City Charter change and voter approval, anticipated as a ballot question during the Tuesday, May 19, 2026, primary election. Once seated, the Board will oversee vendor procurement, investment design, compliance standards, and phased implementation. The program is required to be operational by Thursday, July 1, 2027, barring delays related to potential statewide action or legal constraints. 

Prior to final passage, a comprehensive package of floor amendments was introduced, refining the Board’s governance, authority, and implementation framework. Several amendments directly reflected feedback gathered during the Chamber’s November briefing with Pew and the Council President’s Office, including the need for strong fiduciary standards, enhanced investment expertise on the Board, and flexibility during early implementation. Our Legislative Update from Friday, December 5, 2025, provides a summary of additional amendments that were introduced prior to passage. 

The Chamber was actively engaged throughout the legislative process and supported the Auto-IRA legislation. On Thursday, December 11, 2025, Stated Meeting, the Chamber provided public comment, citing the legislation’s alignment with the Chamber’s commitment to advancing economic mobility and expanding long-term financial security for workers. 

The Chamber will continue to emphasize the importance of clear employer obligations, a phased and non-burdensome rollout, particularly for small businesses, and strong fiduciary safeguards to ensure the program is well governed and sustainable. 

BIRT Exemptions 

As previously reported, on Thursday, November 20, 2025, Councilmember Driscoll introduced legislation (Bill No. 251026) that would exempt sole proprietorships and single-member limited liability companies from the Business Income and Receipts Tax (BIRT) beginning in tax year 2026 and thereafter. The Chamber is actively tracking this legislation and intends to engage with Council and relevant stakeholders to better understand the policy objectives, legal considerations, and potential fiscal and administrative impacts.  

H.O.M.E. Initiative Year One Budget Hearing 

Following months of negotiation and oversight, City Council approved updated bond language (Resolution No. 250995) governing the initial allocation of funding for the Mayor’s Housing Opportunities Made Easy (HOME) initiative. While Council previously authorized an $800 million bond to support the $2 billion HOME plan, aimed at creating and preserving approximately 30,000 housing units, Council retained authority to approve annual resolutions determining how bond proceeds are deployed. 

Council advanced and adopted amendments to the first-year bond issuance that adjust income eligibility thresholds and programmatic priorities, with a stronger focus on lower-income households. Specifically, the approved bond language: 

• Revised income eligibility for key home repair programs, directing the majority of funding toward households earning up to 60% of Area Median Income (AMI). 

• Applied these changes to both the Basic Systems Repair Program (BSRP) and the Adaptive Modifications Program, with 90% of BSRP funds targeted to households at or below the 60% AMI threshold. 

• Expanded funding for the Turn the Key program, which leverages publicly owned land to support homeownership opportunities for first-time buyers. 

• Adopted via resolution rather than ordinance, meaning the amendments were not subject to mayoral veto. 

Council approved the updated bond resolution by a wide margin (16–1), positioning the HOME initiative to move forward while signaling Council’s intent to prioritize housing stability, home repair, and affordability for lower-income and working Philadelphians in the program’s initial phase. 

City Council is expected to continue oversight and discussion of HOME funding allocations as future bond issuances and annual resolutions are considered in 2026. 

MWDSBE Contracting & DEI Policy Oversight 

Council President Johnson introduced Resolution No. 251109 authorizing the Committee of the Whole to hold hearings examining the history and purpose of Philadelphia’s Minority-, Women-, and Disabled-Owned Business Enterprise (MWDSBE) contracting programs, the evolving federal and judicial landscape affecting Diversity, Equity, and Inclusion (DEI) policy, and the Parker Administration’s revised approach to participation ranges and procurement strategy. 

The resolution follows recent changes by the Parker Administration to the City’s contracting framework in response to heightened legal scrutiny of race- and gender-conscious government programs nationwide, particularly following the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard. After consulting with outside legal counsel, the Administration ended the City’s prior race- and gender-based contracting goals and adopted a revised procurement approach focused on prioritizing “small and local” businesses, which the Administration has stated is intended to achieve equitable outcomes while remaining legally defensible. 

The hearings authorized by this resolution are expected to provide Council with an opportunity to review the rationale for these policy changes, assess their potential impacts on MWDSBE participation, and examine how Philadelphia’s procurement strategy can continue to promote fair access and opportunity for historically underrepresented businesses within the current legal environment. 

The Chamber continues to invest in and support DEI initiatives and inclusive economic growth, including efforts to expand contracting opportunities for minority-, women-, and disadvantaged-owned businesses. Through the Diverse Procurement Collaborative Network (DPCN), the Chamber works with anchor institutions, employers, and suppliers to increase diverse supplier spending, improve procurement transparency, and strengthen pathways for small and diverse businesses to compete for contracting opportunities citywide. 

City Council Stated Meeting 

There were many bills and resolutions introduced and passed during City Council Stated Meetings on Thursday, December 11, 2025. For an update on prior activity, you can read our Friday, December 5, 2025, Legislative Update here. You can watch Philadelphia City Council public hearings and Stated Meetings here or access City Council’s Legislative Information Center here. Council is in recess until Thursday, January 22, 2026. 

Bill No. 251097 (Phillips): Amends Chapter 9-4400 of The Philadelphia Code, entitled “Responsible Business Operations,” to add illegal sales of tobacco products to minors and unlicensed tobacco retailing as nuisance behaviors, and require completion of a Department-approved Tobacco Retailer Education and Compliance Training as a condition of lifting a Cease Operations Order. (Status: INTRODUCED 12/11) 

Bill No. 250805 (Lozada): Amends Chapter 9-600 of The Philadelphia Code, entitled “Services and Other Businesses,” to add a new exemption from certain business hour restrictions for pharmacies. (Status: PASSED 12/11) 

Bill No. 250888-A (Thomas): Amends Title 9 of The Philadelphia Code to create a new chapter regulating third-party restaurant reservation services by prohibiting unauthorized listings or reservation activity and establishing definitions, prohibited acts, penalties, and enforcement authority. (Status: PASSED 12/11) 

Bill No. 251032 (Bass): Amends Title 14 of The Philadelphia Code to modify the Eighth District Overlay District by establishing “Commercial Review Areas,” where certain otherwise permitted retail uses – including sundries, pharmaceutical, and convenience sales, as well as drug paraphernalia sales – would require a Special Exception from the Zoning Board of Adjustment rather than being permitted by right. (STATUS: VETOED BY THE MAYOR 12/11) 

The Chamber supports enforcement strategies that focus on problematic behavior rather than business type or geography, noting that overlay districts and curfews can have unintended consequences for responsible operators if not carefully designed. 

State Lawmakers React to Trump Executive Order on Artificial Intelligence 

President Trump recently signed an Executive Order to limit state-level AI regulations that conflict with federal priorities. Specifically, it directs the Secretary of Commerce to evaluate problematic state AI laws and authorizes withholding funding from states with such laws, while instructing other agencies to consider making the absence of similar restrictions a condition for discretionary grants. Additionally, the Order tasks the FTC and FCC with protecting AI companies from state laws that could force consumer deception and calls for developing a national AI legislative framework that would preempt state laws deemed to stifle innovation. 

Pennsylvania Attorney General Dave Sunday said that he would defend any artificial intelligence regulations passed by the Pennsylvania General Assembly from Trump Administration efforts to preempt them. Likewise, both Senate and House Communications & Technology Committee Chairs issued separate statements asserting the ability of state legislatures to address issues as they arise. 

House Advancing Net Operating Loss Legislation  

Following enactment of legislation in July 2024, Pennsylvania is gradually phasing in a higher Net Operating Loss (NOL) operating loss carry forward limits from 40% to 80% by tax year 2029. House Bill 1129 would allow early-stage biotech and technology companies to sell their unused NOLs to create increased capital. 

Forge new relationships, strengthen existing ties, and engage with Philadelphia’s City Council president and members of City Council at our City Council Reception on January 22, 2026. Register now.

Join us at our annual Mayoral Luncheon as Mayor Cherelle Parker embarks on her third year in office. From economic mobility and inclusive growth to business attraction and quality of life, hear how her administration is working to make Philadelphia the “safest, cleanest, and greenest big city in the nation,” providing access to economic opportunity for all. Don’t miss this important occasion as Mayor Parker addresses our regional business community and lays out her vision to make One Philly, a United City! Register now.

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 Laura Williams, Manager, Member and Investor Relations, at lwilliams@chamberphl.com to learn more.

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:

• Shannon Williams, Senior Vice President, Advocacy – swilliams@chamberphl.com
• Renee Androckitis, Federal and State Affairs – randrockitis@chamberphl.com
• Anselm Sauter, State Affairs – asauter@chamberphl.com
• Ashley Miscevich, Local Affairs – amiscevich@chamberphl.com

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