Media Tags: Government Affairs

Last Thursday, the PA Chamber welcomed middle school students from across the state to Commonwealth Charter Academy in Harrisburg to take part in the first-ever Pennsylvania Civics Bee.

The participating students were finalists in regional Civics Bees that had been hosted by five local chambers of commerce (the Chamber of Business and Industry of Centre County; the Chester County Chamber of Business and Industry; the Erie Regional Chamber and Growth Partnership; the Harrisburg Regional Chamber of Commerce and CREDC; and the Wyoming Valley Chamber of Commerce). To advance through the local competitions, the students wrote original essays that described how they would use civics to solve a problem unique to their communities.

The PA Chamber was proud and excited to host this initiative in partnership with the U.S. Chamber Foundation – which started the National Civics Bee through the Civic Trust one year ago – in response to the steady decline of civics education nationwide. Data shows that Americans’ civics knowledge continues to fall, with nearly half not being able to name all three branches of government and 79 percent of 8^th graders scoring below proficient in civics.

PA Chamber President and CEO Luke Bernstein kicked off the event by congratulating the students for showcasing their civics knowledge, demonstrating leadership at a young age, and encouraging new generations of Americans to learn more about civics and contribute positively to their communities.

The first two rounds of the event included a live Q&A, wherein the students answered civics-based multiple-choice questions such as:

• Which of the following people have their face on U.S. currency but were not U.S. Presidents? (Answer: Alexander Hamilton and Ben Franklin)

• How did the U.S. Constitution address the problem under the Articles of Confederation that Congress had no power to ensure its laws were followed by the states?(Answer: It created an executive branch to enforce laws).

The students with the top five scores advanced to the final round, in which the students were given three minutes to describe their award-winning essay concepts to a panel of judges, and then answer questions. Judges included Kathleen McKenzie, Vice President of Community Affairs with Highmark; Michelle James, Regional Membership Development Manager with PSECU; and Joanna Crishock, Vice President of Marketing and Commercial Planning with The GIANT Company.

After tough deliberations, the judges awarded third place and $500 to Winston Cai of Charles F. Patton Middle School in Chester County; second place and $750 to Amishi Amit of Abington Heights Middle School; and first place and $1,000 to Nathaniel Gushurst also of Charles F. Patton Middle School.

The PA Chamber thanks our Civics Bee partners, the U.S. Chamber Foundation, and our regional chambers of commerce; our judges; and Commonwealth Charter Academy. We are especially grateful for the generous support of our sponsors who helped make this event possible: Presenting Sponsor, Highmark; Technology Sponsor, Intrada Technologies; and Gold Sponsors, PSECU and The GIANT Company.

The event was covered in statewide media, which can be reviewed on our “In the News” page; and will soon be aired on the Pennsylvania Cable Network.

The Pennsylvania House of Representatives returned to session last week. With budget negotiations still taking shape, lawmakers advanced proposals related to cell phone taxes and the minimum wage. Here is a rundown of what happened last week in the legislature:

Budget Update

Budget negotiations are in full swing in Harrisburg.  While there was no legislative movement related to the budget last week, legislative leaders have reportedly begun holding closed-door negotiations to develop a budget plan that can get majority support in the House and Senate,as well as sign-off from Gov. Josh Shapiro.

The House passed a budget bill on June 5 that would add approximately $1.3 billion in additional spending to Gov. Shapiro’s budget proposal. In speaking to reporters early last week, Senate Majority Leader Joe Pittman (R-Indiana) referred to the House-passed budget as an “impossible” number and cautioned against using one-time revenues to increase recurring expenditures.

House Bill 1138 (Cell Phone Taxes)

On Tuesday, House lawmakers unanimously voted to pass House Bill 1138. This bill would exempt cell phone service from the state’s Sales and Use Tax (SUT) and Gross Receipts Tax (GRT).

In addition to creating greater certainty for the business community, the legislation would create a more welcoming tax environment concerning telecommunications services, which will encourage additional private capital investment into the deployment and adoption of mobile communications technology. We supported this legislation in committee (CLICK HERE for our memo); it passed 203-0.

House Bill 1500 (Minimum Wage Increase)

On Tuesday, the House Labor & Industry Committee voted along party lines to advance House Bill 1500. This legislation would increase the minimum wage in Pennsylvania from $7.25 to $11 per hour effective Jan. 1, 2024; $13 per hour effective Jan. 1, 2025; $15 per hour effective Jan. 1, 2026 and indexed to inflation after.

The proposal also includes annual cost-of-living increases beginning in 2027 and sets the minimum wage for tipped workers at 60 percent of the hourly minimum wage. The full House considered a number of Republican amendments to this legislation on Wednesday, all of which were voted down, largely along party lines. The bill is expected to be considered for final passage as soon as this week.

Last Thursday, Pennsylvania Chamber of Business and Industry Director of Government Affairs Kevin Sunday testified before the United States Senate Committee on Environment and Public Works Subcommittee on Chemical Safety, Waste Management, Environmental Justice, and Regulatory Oversight. The hearing, entitled “The Impacts of Plastics Production and Disposal on Environmental Justice Communities,” explored the balance between commerce and conservation.

In his testimony, Sunday highlighted the importance of enacting public policy that expands opportunities for all citizens and advances sustainability while supporting economic growth. He emphasized the regressive nature of high energy prices on vulnerable communities and the paramount need for domestic energy development as a means to combat energy poverty.

Sunday outlined Pennsylvania’s significant contributions as a leading producer of energy, electricity, gas, construction materials, food, medicine, and life-sustaining products. He also noted the ongoing efforts in the Commonwealth to establish a circular economy that minimizes water and plastics waste.

“The abundant natural resources of our state have led this country through every major energy transition that has occurred in the past 165 years,” Sunday said.

Sunday stressed the importance of a robust and reliable supply of energy and life-sustaining products, as underscored by the pandemic and recent supply chain shocks. He urged policymakers to consider the economic and environmental benefits of Pennsylvania’s energy and plastics industries, which support over $24 billion in annual economic output and 55,000 jobs, and cautioned against pursuing measures that would constrain this vital sector.

“Limiting domestic output of this industry will produce negative economic and environmental costs and impacts, from raising the cost of goods and services for working families and sending more jobs overseas, to increasing global emissions and an increase in the amount of waste sent to landfills,” Sunday said.

Sunday emphasized the desire for job creation in environmental justice communities and the negative public health consequences of high unemployment. “One of the key criteria in defining an environmental justice community is the percentage of households or individuals in poverty,” Sunday said. “These communities want jobs.”

Sunday also underscored the importance of the state’s plastics and petrochemical industries in manufacturing goods including medical devices, products, vaccines, ammonia, and fertilizer. He highlighted progress in reducing greenhouse gas emissions and the significant energy savings achieved through manufacturing goods from recycled materials. Sunday stressed that plastics remain essential in taking advantage of renewable technologies and reducing emissions.

“Plastics play a key role in renewable technologies and batteries – from light-weighting automobiles to composite components of wind turbines and solar panels, so it is all the more important that we develop strategies for their responsible use and recycling,” Sunday said.

Pennsylvania’s approach to environmental justice, according to Sunday, ensures public participation from impacted communities and produces durable permitting decisions. He urged policymakers to define clear standards that promote fairness and allow communities to thrive.

“As state and federal regulators and legislators define policy goals with respect to environmental justice, the implementation of these goals must come through clearly articulated, objective regulatory standards, established by statute and through a rulemaking process, that are applied fairly and without excessive conditioning of permits and processes.”

The PA Chamber of Business and Industry strongly supports legislative efforts to drive meaningful permitting reform and increase investment in the industry. Sunday acknowledged the bipartisan leadership of Committee Chairman Tom Carper (D-DE) and Ranking Member Shelley Moore Capito (R-WV) and their commitment to enacting permitting reforms.

Sunday maintained that Pennsylvania’s chemicals, manufacturing, and recycling sectors play a crucial role in fostering inclusive and sustainable growth. He cited examples of ongoing projects, such as the International Recycling Group’s zero landfill plastics recycling facility in Erie, Monroe Energy’s refinery in Delaware County, and Shell’s polymers manufacturing facility in southwestern Pennsylvania. These projects not only support economic development but also empower local communities through responsible environmental practices.

“We encourage a balanced discussion that recognizes the important economic benefit of our state’s energy, manufacturing, and chemical sectors as well as any environmental impacts that need to be addressed,” Sunday said.

In closing, Sunday emphasized that strength in these economic sectors is necessary for growth, food security, and energy independence. He highlighted the importance of Pennsylvanian and American-made products in meeting the challenges of climate change and supporting a growing global economy.

Last week, representatives from dozens of local chambers of commerce from across the state gathered in Harrisburg to participate in Chamber Day, an annual event that offers business leaders an opportunity to coordinate their advocacy efforts and hear directly from elected officials and cabinet members about the policies and regulations relevant to the Commonwealth’s broader business community.

“Pennsylvania has enormous potential,” PA Chamber President and CEO Luke Bernstein said to attendees. “From our prime location, rich history, strong infrastructure, industrial diversity, business resources, world-class academic institutions, and hardworking people — the Keystone State has it all.”

“To capitalize on these advantages and make Pennsylvania the most competitive state in the nation, our business community must continue to advocate for pro-growth policies that include accelerating the reduction of the corporate net income tax rate, improving the treatment of net operating losses, modernizing the state permitting system, and addressing the present workforce shortage,” Bernstein continued. “Advancement of these initiatives will significantly enhance our business climate, make our state more competitive, and create additional opportunities for all Pennsylvanians.”

This year’s program kicked off at the state Capitol, with welcome remarks from House Speaker Joanna McClinton (D-Philadelphia). Afterward, attendees received an update on state budget negotiations from Rep. Jordan Harris (D-Philadelphia) and Sen. Scott Martin (R-Lancaster), the respective chairmen of the House and Senate Majority Appropriations Committees.

Following the budget discussion, Pennsylvania Department of Community and Economic Development Secretary Rick Siger spoke about how the agency is focused on positioning Pennsylvania as an attractive tourism destination and enabling companies of all sizes to build, grow, and create good-paying jobs here.

The remainder of the day’s agenda included a series of panel discussions. First, a discussion examining Pennsylvania’s ongoing workforce challenges from a higher education perspective featured representatives from the Pennsylvania State System of Higher Education, the Pennsylvania Commission for Community Colleges, and Penn State.

Next, high-speed internet connectivity took center stage as attendees received a briefing from the Pennsylvania Broadband Development Authority on efforts at both the state and federal levels to expand access to reliable broadband web service.

Finally, the event concluded with an Issues Forum, during which attendees voiced many of the challenges their members are experiencing. Participants also engaged in dialogue with representatives from the PA Chamber and the U.S. Chamber of Commerce about promoting pro-growth policies that will enhance the Commonwealth’s overall economic prospects.

House and Senate lawmakers returned to legislative session last week, voting on proposals related to civil justice reform, transportation, banking, labor, taxes, and more. Here is a rundown of what happened last week in the legislature:

House Bill 689 (Clean Slate Expansion)

On Monday, House lawmakers overwhelmingly approved H.B. 689, which aims to expand Pennsylvania’s first-in-the-nation Clean Slate law (which provides for the automatic sealing of old criminal records for individuals who remain crime-free for a set period of time) to also cover certain nonviolent, drug-related felonies, excluding drug dealing or trafficking.

Given our Commonwealth’s severe workforce shortage, the PA Chamber has been proud to advocate for Clean Slate expansion as a means to encourage Pennsylvanians with a criminal record to reenter the workforce and give employers access to a broader talent pool. This legislation is an important piece of the puzzle in closing the job-skills gap and part of our multi-tiered workforce development strategy.  The law also includes key liability protections for employers.

As such, we supported this measure (CLICK HERE for our memo), which later passed the House 189-14. House Bill 689 now heads to the Senate Judiciary Committee for further consideration.

House Bill 1028 (Rail Freight Restrictions)

Also on Monday, lawmakers voted to pass H.B. 1028, which would impose new regulatory requirements on interstate rail freight regarding safety, staffing, and reporting. The proposal includes several new regulatory requirements on rail freight which are likely pre-empted by or in conflict with federal standards. The bill also grants expansive and unprecedented powers to organized labor to access private property under the guise of safety investigations.

The PA Chamber strongly supports a safe, efficient and modernized system of infrastructure, including with respect to rail freight, and shares the goal of moving our economy forward while protecting consumers and workers. However, the regulatory burdens this legislation would inflict on Class I rail operators could result in disruptions to operations in the state for the movement of goods and products necessary to sustain the economy.

We opposed this bill on these grounds and expressed concern that several of its provisions are in conflict with the agreement negotiated last fall to avert a large-scale labor strike. (CLICK HERE for our memo). House Bill 1028 later passed the House by a vote of 141-62 and now awaits further action by the Senate Consumer Protection and Professional Licensure Committee.

House Bill 181 (Mandatory Paid Leave)

On Tuesday, the House Labor and Industry Committee narrowly passed H.B. 181. This proposal would assess a new payroll tax on Pennsylvania workers – equivalent to a roughly 33 percent increase in the Personal Income Tax – to pay wage benefits for as much as 20 weeks per individual, per year. The bill allows for automatic annual tax increases that would not require legislative input or approval.

This legislation would require employers of all sizes to adopt a one-size-fits-all mandatory policy related to time off, regardless of the company’s size or industry, and prohibit employers from developing customized leave policies that benefit their employees while still accommodating their own unique staffing requirements.

We sent a memo to committee lawmakers on Tuesday, expressing concern and urging them to delay consideration of this measure until adequate feedback from stakeholders (including employers expected to administer this program) could be incorporated.

The bill later passed committee by a vote of 11-10.

House Bill 106 (Mandatory Nurse Ratios)

Also on Tuesday, the House Health Committee met to consider H.B. 106, which seeks to address the ongoing nurse shortage by establishing government-mandated nurse staffing ratios in Pennsylvania hospitals. The bill also imposes monetary penalties on hospitals that do not meet its strict nurse-to-patient ratios.

The PA Chamber supports market-driven solutions to address nursing shortages (such as streamlining the licensure process, improving reciprocity for out-of-state healthcare professionals, and strengthening the pipeline of new nurses) and sent a memo cautioning committee lawmakers against government-mandated ratios that will not solve this problem.

This proposal could likely trigger unintended consequences, including reduced services, bed closures, and even hospital closures. The bill later passed the committee in a party-line vote of 12-9.

House Bill 1138 (Eliminating Cell Phone Taxes)

Also on Tuesday, the House Finance Committee advanced H.B. 1138, exempting cell phone service from the state’s Sales and Use Tax (SUT) and Gross Receipts Tax (GRT).

In addition to creating greater certainty for the business community, the legislation would create a more welcoming tax environment with respect to telecommunications services, which will encourage additional private capital investment into the deployment and adoption of mobile communications technology.

We supported this legislation (CLICK HERE for our memo), which passed the House Finance Committee along party lines in a 12-9 vote. It now awaits further action in the House Appropriations Committee and will be eligible for final passage this week.

Senate Bill 69 (Recovery-to-Work Pilot Program)

On Wednesday, the Senate Labor and Industry Committee met to consider S.B. 69, which would create a pilot program to connect individuals in drug recovery with occupations through local workforce development boards.

The current heroin and opioid epidemics are impacting every region of the Commonwealth; we know that gainful employment represents a meaningful step in the long-term recovery process.  This legislation aims to break the cycle of addiction and also address the state’s workforce needs by helping individuals with a history of substance abuse obtain employment.

We supported this legislation, which advanced by a vote of 7-4.

Senate Bill 742 (Bank Shares Goodwill Deduction)

Also on Wednesday, the Senate Finance Committee met to consider S.B. 742, which would amend the Tax Reform Code by clarifying that any goodwill filed by banks with the Federal Deposit Insurance Corporation (FDIC) is excluded from the bank shares tax calculation.

Goodwill is an intangible asset added to a balance sheet when any company acquires another business in a transaction at a price higher than the net fair value.  While goodwill has historically been allowed as a deduction from total bank equity in order to calculate a financial institution’s tax liability under the bank shares tax, the Department of Revenue has recently denied goodwill deductions that involve combinations of bank holding companies which result in the combination of subsidiary banks.

This impacts the vast majority of mergers, resulting in a tax increase, a competitive disadvantage for Pennsylvania banks, and a growth constraint for businesses and consumers.  Every $1,000 paid in tax could be leveraged to provide $10,000 in loans.

We supported this legislation (CLICK HERE for our memo), which advanced by a vote of 8-3.

House Bill 611 (State Budget)

The House advanced legislation for enacting the state budget in a party-line 102-101 vote this week. The bill was originally introduced to reflect the budget proposed by Gov. Shapiro earlier this year.  However, prior to its final passage, the House amended the bill – adding roughly $1.3 billion in additional spending that was not contained within the governor’s proposal.

House Democrats cited revenues coming in above projections as justification for the additional spending. As of the end of May, General Fund tax collections are approximately $1.2 billion above projection – nearly $1 billion of which is from Corporate Net Income Tax collections. In opposing the plan, Republican members argued that the budget proposal spends too much, citing a 14 percent increase over the current year. They also cautioned that the proposal would result in draining the state’s Rainy Day Fund, which may be needed in the coming years.

The budget bill is now in the Senate and will ultimately be amended again to reflect the final budget agreement negotiated by the governor and both chambers of the state legislature.