GREATER PHILADELPHIA CHAMBER OF COMMERCE: COVID-19 Legislative Updates: Roundup of Federal, State, and Local Actions

By Press release submission

Apr 10, 2020

Greater Philadelphia Chamber of Commerce issued the following announcement on April 9

As the COVID-19 public health crisis evolves, 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, April 9, 2020.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

We also have a COVID-19 Information Hub with up-to-date resources to support your business.

VISIT THE COVID-19 INFORMATION HUB

KEY TAKEAWAYS FOR YOUR BUSINESS

Federal

The Payment Protection Program (PPP), a key pillar of the CARES Act, may require supplemental funding from Congress due to the current and projected small business demand for loans through the program.
The additional $250 billion for the PPP called for by Senate Republican leaders will be supported by Congressional Democratic leadership if it includes support to nonprofits, women-, minority-, and veteran-owned small businesses, PPE equipment and other resources for hospitals, state and local government support, and a SNAP benefit increase.
Congressional leaders are working with the White House on the fourth round of coronavirus response legislation in hopes they will have something ready for consideration when Congress returns from recess on April 20.
The Chamber issued a statement to our regional congressional delegation last week urging a balanced approach to the next phases of stimulus.

State

The Pennsylvania House Appropriations Committee approved an amended Senate Bill 613 to provide a way for businesses that follow federal safety recommendations to reopen.
The Chamber coordinated the effort to have over 40 local chambers of commerce statewide sign a letter to Governor Wolf requesting that the Administration allow more businesses to operate under CISA and CDC guidelines.
The Pennsylvania House passed SB 327 to create a 23-member Interbranch COVID-19 Cost and Recovery Task Force to track and manage recovery plans.
Pennsylvania House Democrats are circulating a plan to reopen the Working Capital Loan program.
The Senate approved emergency measures (SB 841) this week to help local governments respond to the COVID-19 public health emergency through greater flexibility on property tax deadlines, allow local governments to conduct remote meetings, and authorize remote notarization activities.
A bill was introduced to aid businesses closed by the Governor’s COVID-19 order to provide economic assistance similar to that provided by business interruption insurance, which does not typically cover governmental proclamations or pandemics.

Local

The Kenney administration will submit a revised budget and Five Year Plan to City Council because of the economic impact of COVID-19.
The City has reached a tentative agreement on a one-year contract extension with District Council 47 and continues negotiations with District Council 33 and Local 22 are continuing.
The Chamber continues to host virtual gatherings with members of City Council to give Chamber members the opportunity to learn more about how Councilmembers are responding to COVID-19.
The City continues to provide resources for residents and businesses to stay informed during the COVID-19 crisis.

DETAILED LEGISLATIVE UPDATE

Federal: Updates from Washington D.C.

CARES Act Payment Protection Program Experiences High Demand

After passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the third phase of economic stimulus and financial assistance to address the COVID-19 pandemic, Congress was expected to recess until the week of April 20. However, a key pillar of the CARES Act, the Payment Protection Program, may require supplemental funding from Congress in the coming days in order to replenish the $349 billion program due to the current and projected small business demand for loans through the program.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Earlier this week, Senate Republican leaders called for an additional $250 billion for the Paycheck Protection Program. Congressional Democratic leadership issued a joint statement yesterday supporting the $250 billion proposal if:

A portion of the funding is distributed through “community-based” financial institutions to nonprofits, women-, minority-, and veteran-owned small businesses.
The bill includes $100 billion for personal protective equipment and other resources for hospitals and community health centers combatting the outbreak of COVID-19.
$150 billion is distributed to state and local governments to help manage the pandemic and offset lost revenue during the crisis.
The maximum Supplemental Nutrition Assistance Program benefit is increased by 15 percent.

The Chamber Urges Balanced Approach for Phase 4 Legislation

Democrats suggested the measure would serve as “interim emergency legislation,” until Congress moves to pass a “CARES 2 Act” that would extend and expand the original piece of legislation. Congressional leaders are working with the White House on the fourth round of coronavirus response legislation in hopes they will have something ready for consideration when Congress returns from recess on April 20. CARES 2 may provide more aid for small businesses, expand unemployment benefits, and make additional direct payments to individuals. This represents a sizeable shift from Congressional Democrats’ focus last week on a possible infrastructure spending bill, which may instead serve as a “Phase 5” economic stimulus bill.

The Chamber issued a statement to our regional congressional delegation last week urging a balanced approach to bolster, extend, and expand the popular Paycheck Protection Program; supplement assistance to distressed sectors like hospitals and institutions of higher education; and invest in critical infrastructure areas that support our regional economy, for example, transportation, talent, energy, water, and telecommunications.

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

State: Updates from Harrisburg

House Committee Passes Legislation to Open More Businesses

The Pennsylvania House Appropriations Committee approved an amended Senate Bill 613 on a party-line vote to provide a way for businesses that follow federal safety recommendations to reopen. The amendment calls upon the Governor to implement a COVID-19 mitigation plan for businesses to follow upon reopening.

The House is scheduled to be back in session on April 14 while the Senate is slated to return April 20.

The Chamber coordinated the effort to have over 40 local chambers of commerce statewide sign a letter to Governor Wolf requesting that the Administration allow more businesses to operate under CISA and CDC guidelines to ensure critical infrastructure supply chains are protected during the COVID-19 crisis.

House Measure Creates COVID-19 Task Force

This week, the Pennsylvania House passed SB 327 to create a 23-member Interbranch COVID-19 Cost and Recovery Task Force to track and manage recovery plans. In addition, it directs a review by the Pennsylvania Treasury on how to use zero interest rates to reduce the state government debt and requires the Governor to notify lawmakers of any actions to suspend, modify or waive a state regulation during the emergency. According to the House Appropriations Committee fiscal note, the task force would identify immediate issues requiring government action, develop a recovery plan focusing on the reopening of society, and issue a final report six months after the emergency is over. The task force would consist of 16 legislative branch members, four executive branch members, and three judicial branch members. The governor, caucus leaders, and Chief Justice of the Supreme Court would have appointive powers.

PA House Swears-In Three New Members

Three new members of the Pennsylvania House were sworn in Monday during a brief ceremony in the state Capitol. The three Republicans all won special elections last month to fill seats vacated by members who were elected to county offices in November.

The new members are Rep. K.C. Tomlinson of Bucks County, Rep. Eric Davanzo of Westmoreland County, and Rep. Tim Bonner of Mercer County. K.C. Tomlinson is the daughter of state Senator Tommy Tomlinson (R-Bucks) and fills the seat of Gene DiGirolamo who is now serving as a county commissioner in Bucks County.

The House currently has no vacancies and Republicans hold the majority, 110 to 93.

Efforts to Reopen Working Capital Loan Program in PA House

Pennsylvania House Democrats are circulating a plan to reopen the Working Capital Loan program. The loan program provides 0% interest rate loans of up to $100,000 in working capital to for-profit small businesses. The program was initially funded at $61 million, but received an overwhelming number of applicants surpassing the allotted funding available. The proposal will transfer $100 million from the state Rainy Day Fund and allow Pennsylvania non-profits and life science industries to apply for financial assistance.

Senate approves COVID-19 emergency measures for local governments

The Senate approved emergency measures (SB 841) this week to help local governments respond to the COVID-19 public health emergency. The bill would:

Allow local governments to provide greater flexibility on property tax deadlines.
Permit local governments to conduct remote meetings.
Give notaries emergency authorization to notarize documents remotely through the use of communications technology.

Under the bill, local governments would be authorized to extend deadlines for property tax discount rates to any date up until August 31. The legislation would also allow local governments to waive any fee or penalty for late payments of property taxes if paid in full by the end of the year. The provisions give local taxing bodies more flexibility to help local taxpayers who are struggling financially due to the COVID-19 crisis. Additional time would also be allowed for businesses to contribute to educational scholarship programs in order to earn tax credits. In addition, the bill also reauthorizes the Pennsylvania Health Care Cost Containment Council, which is responsible for collecting and analyzing data about the cost and quality of health care in the state and making recommendations to reduce the cost of care.

The panel would be responsible for preparing a report on the effect of the COVID-19 disaster emergency on health care facilities, including expenses and lost revenue during the crisis to determine additional financial assistance.

Insurance Bill Introduced to Aid Businesses Closed by COVID-19 Order

Rep. Tom Mehaffie (R-Dauphin) has introduced a bill (HB 2386) that would help businesses closed by Gov. Tom Wolf’s order to shutter “non-essential” industries during the COVID-19 pandemic.

The economic assistance would be similar to that provided by business interruption insurance, which does not typically cover governmental proclamations or pandemics.

Business interruption insurance is commonly underwritten into insurance policies to assist when something happens out of the business owner’s control. That could include a situation like a tree falling on the business’ roof.

When these types of actions cause physical damage to a building and stop business operations, business owners can file a claim to recoup lost income or the costs associated with relocating.

Because of the governor’s order to close non-essential businesses, the business owners have been left without recourse and are suffering the economic consequences.

The bill was referred to the state House Commerce Committee on Monday.

PA Senate Passes Remote Notary Bill

In response to the COVID-19 crisis, legislation (SB 1097) by Pennsylvania Senator Doug Mastriano (R-33) to authorize remote notarization of documents was approved by the Senate this week. The bill authorizes the use of secure and reliable technology to assist notaries in performing their duties.

More than 20 states have already enacted this type of legislation.

As part of the bill, audio-video communication could be used to E-notarize documents that would otherwise need to be verified in person. A notary would retain his or her function and responsibilities as an impartial witness, while the technology provides another means by which the notary may perform official duties. Verification and privacy protections are built into the legislation.

Question? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

Local: Updates from Philadelphia’s City Hall

Mayor Revises Budget Due to COVID-19

This week, Mayor Kenney announced that his administration will submit a revised budget and Five Year Plan to City Council because of the economic impact of COVID-19. It is expected that the revised budget will be delivered to Council by May 1, 2020 and will reflect significant cuts as City officials anticipate the City having a low fund balance and must shift funds to combat COVID-19.

The City Negotiates Contracts with Municipal Workers

Mayor Kenney also announced that the City has reached a tentative agreement on a one-year contract extension with District Council 47. This comes on the heels of an agreement on a similar extension with FOP Lodge 5. Negotiations with District Council 33 and Local 22 are continuing. The current contracts with all four municipal worker unions expire at the end of June.

The one-year extension with DC47 includes a two percent increase in each step of each pay range in the District 47 pay plan. It also includes one-time bonuses of either $450 or $700, depending on whether the employee is working onsite during the pandemic for the majority of their time.

Philadelphia City Council is not in session this week but is expected to resume on Thursday April 16, 2020. However, the body along with the Mayor released a joint letter to the U.S. Treasury Department asking that CDFI’s be included as certified lenders in Federal Stimulus packages.

Virtual Gatherings with Councilmembers Continue

The Chamber continues to host virtual gatherings with members of Council. This week, the Chamber held Virtual Council Connector Gatherings with Councilmembers Jamie Gauthier (3rd District) and Councilwoman Maria Quinones Sanchez (7th District). Attendees were able to learn more about how Councilmembers are responding to COVID-19, learn what resources are currently available, get a synopsis of how different industries are faring during the COVID-19 emergency and have a robust conversation about what economic recovery will look like for Philadelphia. Additional meetings are being scheduled and will be advertised once dates are confirmed.

COVID-19 Resources offered by the City of Philadelphia

The City of Philadelphia has organized a robust collection of resources for residents and business owners:

City’s COVID-19 homepage: phila.gov/covid-19.
COVID-19 resources translated in multiple languages.
Greater Philadelphia Coronavirus Helpline: 1 (800) 722-7112.
Text COVIDPHL to 888-777 to get updates delivered to your phone.
Updates and guidance for Philadelphia employees and employers.
Information and resources for workers.
The PHL COVID-19 Fund continues to solicit donations to aid nonprofits that are on the frontline of the pandemic.
For Businesses:
- Business owners or managers who have questions about the restrictions in the City’s latest Business Activity and Stay at Home Order can email vbeoc@phila.gov.
- L&I guidance on construction work following City Business Activity and Stay at Home Order.
- The City is extending filing and payment dates for Real Estate and some business taxes.

Question? Contact William Carter (wcarter@chamberphl.com) or Darrell Davis (ddavis@chamberphl.com) for more information about local legislative affairs.

WE’RE HERE FOR YOU, YOUR TEAM, AND YOUR BUSINESS

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: