Chamber Chats: Fall Session Priorities

Lawmakers return to Harrisburg later this month, and the PA Chamber is excited to continue promoting bipartisan, pro-business solutions we are championing to make Pennsylvania a more competitive state for business.

For the latest edition of Chamber Chats, the PA Chamber’s Lindsay Andrews caught up with our Vice President of Government Affairs, Alex Halper, to discuss the organization’s top policy priorities as his team gears up for start of the fall session. A minimally revised transcript of their conversation is below.

(Click to view video)

 

We have had a good start to 2023 and some of the things that got done in the budget. Can you talk to us a little bit about what was achieved on behalf of business and what we would like to see coming up in the fall?

AH: Yeah, we have made some real progress on getting some of the top Chamber priorities as part of the legislative agenda – the priorities that lawmakers, that the governor are talking about.

Things like improving Pennsylvania’s tax code. We had tremendous progress last session to make Pennsylvania more competitive as it relates to business taxes, but a lot more work to do and we have a real opportunity this year, this session, and this fall to make more progress.

What can you tell us about the specifics of that progress? What would you like to see get done?

AH: Last year, for the first time in decades, Pennsylvania reduced its corporate net income tax rate. And we needed to because we had the second-highest rate in the country.

The problem is, while we did that, other states are making pro-business, pro-growth tax reform as well, and Pennsylvania is just not keeping up. Governor Shapiro, when he was running for office, talked about reducing those tax rates more quickly, and expediting those reductions.

We thought that was a great idea; we supported the governor’s call for expediting the reduction of the corporate tax rate. There is legislation in both the House and Senate to do that, and we are going to keep pushing to get that done.

What about the treatment of net operating losses? What can you tell us about that? I know that has been a long-term goal for the business community.

AH: Pennsylvania unfortunately puts itself at a great disadvantage as it relates to net operating losses. That basically means that for businesses that experience losses – they lose money in a year – they are often able to use those losses to offset profits in a future year. Of course, our goal for all businesses is to make a profit but a lot of times, you might have a startup company where they are investing in capital, into people, and they are losing a lot of money.

The tax code, both at the federal and the state level, allows companies to offset those losses and reinvest in their company. Pennsylvania, though, does not treat those losses nearly as favorably as practically every other state in the country.

We basically impose a tax on startup companies, which is the last thing we want to be doing if our goal is to make Pennsylvania the most competitive state in the country and attract new, innovative businesses.

There is legislation, again, in both the Senate and the House, that would make Pennsylvania at least on par with other states for how it treats these losses. This bill passed unanimously out of the Senate Finance Committee earlier this session, and we are working with lawmakers on both sides of the aisle – with the House and Senate and the Governor’s Office – to keep that legislation advancing and hopefully get it done.

Moving on to workforce development because I know that is huge for us. A good, strong, bipartisan issue and I know that we took the lead in the first-of-its-kind Clean Slate legislation, what is next for that? What is next for workforce development in the fall?

AH: It is a challenging issue. Employers continue to struggle finding people to fill open positions. There are many, many reasons why the labor market is so tight, and that means we need to have many, many solutions to address this challenge.

You mentioned Clean Slate, which is about helping to encourage Pennsylvanians who have a criminal record or are recently incarcerated, trying to encourage them back into the workforce. That needs to continue to be a priority. We are supporting legislation that would build on Clean Slate, which provides for  automatic expungement of certain lower-level, non-violent offenses.

Similar to Clean Slate, there are efforts to reform Pennsylvania’s probation systems, and we have advocated for some employment-specific reforms to probation.

Things like that—there are no silver bullets to solving Pennsylvania’s and the nation’s workforce crisis. But these are some specific solutions that we think will help a lot of Pennsylvanians but also a lot of Pennsylvania employers.

I also know that permitting reform is critical and an important issue for employers wanting to come to the state. What can you tell us about what is being done to streamline our permitting process and attract business and jobs to Pennsylvania?

AH: It simply takes too long, it is too complicated, and there is not enough transparency in the system of applying for and receiving state permits for projects—if you are looking to expand your facility, for example.

Legislation passed the state Senate earlier this year with bipartisan support to improve those systems, create more efficiency and more transparency. Employers want to know how long it is going to take and how and when to make key investments. This is not about cutting corners as it relates to environmental regulations, this is about understanding and having uniformity with the process and transparency.

This legislation is now pending in the state House, we think it would go a long way toward improving permitting in Pennsylvania and again something we are hoping will continue to advance this fall session.

This is something that has the support of business and lawmakers on both sides of the aisle as well as the Shapiro administration.

AH: That is true. One of the first actions that Gov. Shapiro took upon taking office was issuing an executive order to improve permitting in Pennsylvania. Part of this legislation would codify Gov. Shapiro’s executive order so that it exists in Pennsylvania law long after his tenure as governor is completed. We think there are some very good ideas in there and we look forward to continuing to work with a broad coalition to make this happen.


 

For more information on these issues, please visit the On the Hill section of our website.

Philly Event Highlights Bipartisan Calls for Permitting Reform

This past Friday, PA Chamber Vice President of Government Affairs Alex Halper participated in a panel discussion in Philadelphia focused on permitting reform.

The organization Building a Better America hosted the panel discussion at the Sprinklerfitter’s Local 692 union hall in northeast Philadelphia.  Joining Halper on the panel were State Senator Frank Farry (R-Bucks), State Representative Martina White (R-Philadelphia), UA Local 420 Business Manager Jim Snell, Buckley & Co. CEO Rob Buckley, and Lower Bucks Chamber of Commerce Executive Director Joseph Szafran.

Halper emphasized the importance of improving Pennsylvania’s systems of issuing state permits for expansion, development, and other projects and the extent to which permitting reform is a key element in the PA Chamber’s legislative agenda to strengthen the Commonwealth’s competitiveness.  He praised Gov. Shapiro for identifying permitting reform as a priority early in his new administration and urged the Administration to work with lawmakers to build on the Governor’s efforts, specifically by helping to advance reform legislation in Senate Bill 350.

Senator Farry described efforts in the Senate, which passed S.B. 350 this past spring with bipartisan support, and Rep. White highlighted some of the many reasons this issue represents a unique opportunity to support Pennsylvania workers, employers, communities, and our economy. Szafran, who took over as Executive Director of the Lower Bucks Chamber in May, articulated his experience hearing from businesses frustrated over the slow and opaque process of applying for state permits.

The PA Chamber will continue to advocate for meaningful, common-sense permitting reform both in the halls of the state capitol and throughout the Commonwealth.

PA Chamber Leads Coalition Urging EPA to Withdraw Controversial Water Rule

HARRISBURG – A coalition of 24 state chambers, led by the Pennsylvania Chamber of Business and Industry, has submitted a comment letter to the Environmental Protection Agency (EPA), calling for the withdrawal of a controversial water quality rule which the agency recently proposed.

In its letter, addressed to EPA Assistant Administrator Radhika Fox, the multi-state coalition raises significant concerns about the proposed rule, specifically questioning the data and methodology used in the agency’s decision to classify four additional chemical compounds as contaminants under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

While the coalition expressed support for the establishment of a comprehensive national drinking water standard for certain chemicals, its comment letter highlights several problems with the EPA’s current proposal – asserting that the costs associated with the proposed rule are substantial and likely underestimated.

The coalition cites the potential costs of implementing the proposed maximum contaminant levels (MCLs) for two compounds, perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS), estimating an annualized cost of approximately $1.8 billion. This figure represents more than double the EPA’s own estimated costs provided in the agency’s economic analysis.

Consequently, the coalition warned that the implementation of this proposed rule could lead to sharp increases in household water costs (up to $1,000 per month) in communities nationwide.

The coalition letter outlines the following key concerns:

  • Insufficient data on occurrence levels at the proposed maximum contaminant level.
  • The introduction of a novel hazard index approach for certain chemicals, raising technical, scientific, and legal questions.
  • Limited understanding of the risks associated with the proposed MCL.
  • The necessity of considering costs and benefits as required by the Safe Drinking Water Act.

Moreover, the coalition indicates that the proposed rule fails to consider the costs of Superfund cleanups, given the pending CERCLA hazardous substance designation for PFOA and PFOS.

As a result, the letter requests the EPA withdraw its proposal and await the outcomes of the ongoing Unregulated Contaminant Monitoring Rule (UCMR) 5 process before proceeding with a regulatory determination. In its conclusion, the coalition letter stresses that these outsized costs are avoidable and urges the EPA to adopt a more reasonable and defensible approach.

The letter is available here and was signed by the following state chambers:

  • Arizona Chamber of Commerce and Industry
  • Greater North Dakota Chamber
  • Idaho Association of Commerce & Industry
  • Illinois Chamber of Commerce
  • Indiana Chamber of Commerce
  • Iowa Association of Business and Industry
  • Kansas Chamber of Commerce
  • Kentucky Chamber of Commerce
  • Maine State Chamber of Commerce
  • Maryland Chamber of Commerce
  • Michigan Chamber of Commerce
  • Minnesota Chamber of Commerce
  • Missouri Chamber of Commerce and Industry
  • Nebraska Chamber of Commerce & Industry
  • New Jersey Business & Industry Association
  • New Mexico Chamber of Commerce
  • North Carolina Chamber
  • Ohio Chamber of Commerce
  • Oregon Business & Industry
  • Pennsylvania Chamber of Business and Industry
  • South Carolina Chamber of Commerce
  • Tennessee Chamber of Commerce & Industry
  • Virginia Chamber of Commerce
  • Wisconsin Manufacturers & Commerce