From PA Chamber of Business & Industry
Last week, the House passed historic liquor reform legislation that Gov. Tom Wolf publicly signed on Wednesday, June 8. On Tuesday, the House voted 157-31 on concurrence in favor of H.B. 1690, which provides for the private sector sale of wine in grocery stores with a restaurant license; allows takeout wine sales in licensed restaurants, bars, hotels, supermarkets and delis; and lets about 14,000 holders of takeout beer licenses to sell up to four bottles of wine; among other improvements to the current state store system.
The new law makes no changes to the current sale of liquor and does not close any state stores. Governor Wolf issued a statement calling the bipartisan effort “the most significant step the commonwealth has taken to reform our liquor system in 80 years.” For its part, the PA Chamber has long advocated moving Pennsylvania’s antiquated liquor sales system into the 21st century to give consumers the convenience and choice they overwhelmingly want; and make the state competitive in alcohol sales, in order to keep critical sales revenue in the Commonwealth’s borders each year.
Following the governor’s action, PA Chamber President Gene Barr released a statement thanking elected officials for enacting the popular reform legislation and allowing the private sector to responsibly sell wine. “We applaud the governor for signing this important reform legislation into law – which will help keep revenue within our borders and will expand private sector opportunities to responsibly sell alcohol and compete on equal ground with neighboring states,” Barr said. “This effort – which had bipartisan support – shows how the spirit of compromise can bring about positive change in Pennsylvania.”
It has been over 12 years since the Fair Labor Standards Act (FLSA) was last amended. In 2004, a Final Rule increased the salary level an employee must be paid to come within the standard test for an Executive, Administrative or Professional exemption (EAP, also known as the white collar exemption) from minimum wage and overtime requirements to $455 per week. At that time the Department of Labor (DOL) also modified required duties tests for meeting the exempt from overtime status and created an exemption for highly compensated employees (HCEs).
After issuing proposed rules in 2015, the DOL recently released its 2016 Final Rule, which is aimed at expanding overtime eligibility for millions of American workers. The Final Rule increases the minimum salary employers must pay white collar workers to maintain their exempt status to $913 per week, but does not make any changes to the job duties test. Employers have until December 1, 2016 to comply. The Chamber’s member benefits provider, ChamberChoice, has provided a summary of the key provisions of the new overtime rule. The U.S. Department of Labor has held several webinars explaining the changes, which are archived for viewing. If employers have any remaining questions, they are advised to contact an attorney for clarification.
Leaders in the PA House and Senate from both parties are optimistic that the 2016-17 budget will be passed on or near the June 30th deadline this year. A major motivator is that the entire House and half of the Senate members are up for reelection this fall. Details on how to close a $2 billion deficit have not yet been finalized.
The expectation of a budget deal was echoed by House Speaker Mike Turzai, House Appropriations Committee Chairs Bill Adolph and Joseph Markosek, Senate Appropriations Chair Pat Browne and Senator Jake Corman on Tuesday. All stated that this year’s negotiations are going much better than last year’s. The legislators met with chambers of commerce from across the state at the annual Chamber Day at the Capitol. The event was organized by the PA Chamber of Business and Industry and the Pennsylvania Association of Chamber Professionals. Republican leaders and the PA Chamber continue to push for reform of the state pension system, a major cost driver in the budget. The Commonwealth’s obligation for the coming fiscal year increases $500 million to $2 billion. Speaker Turzai stated that pension reform legislation currently in the House was agreed to by Governor Wolf last year. Any of the reforms being considered would not result in immediate savings for Pennsylvania taxpayers.
To help generate the additional revenue needed to meet this obligation, the expansion of gaming and the expansion of items and services subject to sales tax are being considered. Also on Tuesday, the House passed reforms to the state liquor system that will allow grocery stores to sell wine and expand beer sales at convenience stores. The reforms, which House leaders hope will lead to the eventual complete privatization of the liquor sales in Pennsylvania, is expected to generate an additional $150 million in revenue annually. Governor Wolf did not immediately indicate if he would sign the bill. Increases in the sales tax rate and personal income tax rates are off the table in the negotiations, according to legislators. Budget Secretary Randy Albright expects that some “gimmicks” and “one-time fixes” will be utilized by the legislature to bridge any remaining budget shortfall.
Talen Energy Corporation has completed a feasibility assessment related to bringing natural gas to the power plant located near Washingtonville in Montour County and installing boiler modifications to enable a dual-fuel, also known as co-firing, capability. The company’s Board of Directors approved the project, which will enable the Montour plant to operate on coal, natural gas or in combination. Engineering and design work is already in progress and, based on obtaining all necessary permitting and regulatory approval, the anticipated completion date is the second quarter of 2018.
Based on the results of a competitive RFP process, the company is currently in the process of selecting a qualified third party to construct, own and operate a 15 mile lateral pipeline to bring natural gas to the 1,500 megawatt Montour plant. The estimated capital expenditure for plant modifications is approximately $70 million with additional pipeline expenses and payments to be made to the third party constructing the pipeline and regulating and metering station.
“Montour is a significant asset in the Talen Energy fleet and we are making the necessary investments to improve its competitive position in the market,” said Paul Farr, Talen Energy President and Chief Executive Officer. “The Montour plant is located in close proximity to one of the largest natural gas formations in the world, the Marcellus Shale. Co-firing the plant to burn natural gas, produced in Pennsylvania, enables Talen Energy to leverage the strategic location of the plant.”
The pipeline company selected by Talen Energy will be responsible for obtaining all necessary environmental and construction permitting from the appropriate federal, state and local agencies. Talen Energy expects to announce additional details related to the pipeline, contractor and next steps as part of its typical quarterly reporting as those details become available. Last week’s announcement that private investment firm Riverstone Holdings LLC will acquire Talen Energy is not expected to impact this decision. That transaction is expected to be completed by the end of 2016.
Some of the sponsors for the upcoming Chamber Golf Outing at Knoebels Three Ponds Golf Club have been finalized, and the Chamber would like to take a moment to thank the following sponsors:
Sponsors:
Event – Williams
Beverage- Generations Construction, Inc.
Dinner- Geisinger-Bloomsburg Hospital
Dinner- MetroCast Communications
Lunch- Berwick Health and Wellness Fund of CSCF
Snack- First Columbia Bank & Trust
Hole-In-One- Alexander Family Buick GMC Truck
Hole Sponsors:
3B Cleaning & Floorcare
Berwick Hospital
Bloomsburg Carpet
Bodnar Sales & Service
Danville Child Development Center
First Keystone Community Bank
Gordner Coombs Insurance, Inc.
Hampton Inn-Bloomsburg
Hutchinson Insurnace Agency
PenTeleData
Service Electric
Steph’s Subs
The Farmhouse at Turkey Hill
The Inn at Turkey Hill
Turkey Hill Brewing Company
Villager Reality-Bloomsburg
Wagner’s Trophies & Engraveables
Zimmer Insurance Agency, Inc.
We sincerely appreciate all of your commitment!
The Columbia-Montour Chamber of Commerce and Columbia Montour Visitors Bureau are pleased to announce the release of the Quality Living guide. The publication is complete with high quality images and detailed information about Columbia and Montour counties. It will be distributed as a tool to promote and grow our area’s economy. The 40-page guide showcases everything that makes the area a desirable place to live, work, visit, and enjoy. Sections include Healthcare, Education, Outdoor Recreation, Real Estate, Dining and Shopping, along with many others. Copies are available free for member use by contacting the Chamber office at 238 Market Street in Bloomsburg or by calling 570-784-2522. To see the new guide, click here.
Employers have until December 1, 2016 to comply with new overtime eligibility regulations developed by the U.S. Department of Labor (DOL). The update, announced May 18th, is expected to extend overtime eligibility to 4 million workers. Detailed information, including fact sheets for non-profit organizations, higher education, and local governments can be found on the Department’s website, along with a schedule of free webinars for all employers.
A few of the key details on the new rules:
• The final rule increases the salary threshold under which most employees will be automatically eligible for overtime pay. The current salary level required for exemption is $455 a week ($23,660 for a full-year employee), which was last updated in 2004, and the new exemption threshold will be $913 a week, or $47,476 per year.
• Employers can take up to a 10% credit towards the salary threshold from commissions or bonuses as long as they are paid at least quarterly.
• In addition, the change in the salary threshold also includes an automatic adjustment every three years. The adjustment will be tied to the 40th percentile of full time salaried workers in the lowest wage region of the country (currently the Southeast).
• The overtime rule leaves intact the current “duties test” that employees must meet to be exempt, in addition to being paid a salary above the $47,476 threshold.
Legislation to block the new regulations has been introduced in the House (H.R. 4773) and Senate (S. 2707). The Protecting Workplace Advancement and Opportunity Act would also require the DOL to perform a better analysis on the impact changes to the overtime threshold will have on small businesses, nonprofits, regional economies, and local governments, in any succeeding proposed rule.
Last Wednesday, the U.S. Department of Labor (DOL) announced updates to overtime regulations, which extends overtime eligibility to over 4 million workers. President Obama directed the Department to update the regulations in 2014. Employers have until December 1, 2016 to comply. Key highlights are as follows:
- The salary threshold will be increased to $47,476 annually ($913/week)—an increase of slightly more than 100% from the current threshold of $23,660 annually ($455/week). The proposed level was $50,440 annually.
- There will be no changes to the duties test. The DOL had indicated it was considering adding a quantification component similar to California’s that would have required employers to show an employee was performing exempt duties a certain percentage of time to qualify under the specific exemption.
- The salary threshold will be updated every three years and tied to the 40th percentile of full time salaried workers in the lowest wage region of the country (currently the Southeast).
- Employers can use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
Detailed information including fact sheets for non-profit organizations, higher education, and local governments can be found on the DOL’s website. Informational webinars are also scheduled. The Chamber is working with its partners, including ChamberChoice, to provide additional resources for members. Legislation has been introduced in both the House (H.R. 4773), and Senate (S. 2707), which would block these new rules.
From SEDA-COG
The Columbia County flood risk management project is about 75 percent complete with full completion anticipated in November. To date, the project is on time and on budget.
Construction started last March with the official groundbreaking following that April.
The $30 million project will preserve over 700 jobs at the Autoneum North America Inc. facility, as well as maintain the potential for industrial development and local employment at the former Windsor Foods site. Without a flood risk management system, the former Windsor Foods facility would be unsalable and fall into a state of deterioration, becoming a blighting influence in the Town of Bloomsburg.
The project continues to have a positive effect on the local and regional economy. The project’s general contractor remains committed to local sourcing of suppliers and subcontractors from the area when it is feasible. Several local suppliers and subcontractors continue to provide material, equipment and labor to the project.
The weather has been conducive, allowing work to continue through most of the winter. Most of the subterranean work is complete. The H-pile and pre-cast concrete panels along West Fifth Street, Magee Avenue and Sixth Street are nearing completion. Most of the concrete work for the closure structures along the West Fifth Street corridor is complete. With the help of the best crew like Atlanta Concrete Contractors work can be done efficiently and effectively. The structure to be constructed at the western end of the Autoneum facility over the next couple of months is a Mechanically Stabilized Earthen Levee. This type of levee is best described as half of an earthen levee (wet side) and half of a retaining wall (dry side). Work along the North Shore Railroad mainline continues.
On West 11th Street, an earthen levee has been constructed along a portion of the western border of the former Windsor Foods facility. Tying into the earthen levee is a Mechanically Stabilized Earthen Levee which extends to West 11th Street, turns and runs east along West 11th street. Work will begin over the next few weeks to complete the Mechanically Stabilized Earthen Levee. This will allow the construction start of the full earthen levee, which will cross old West 11th Street and connect to high ground in a previously wooded area west of Barton Street.
In addition to the construction of the flood wall, substantial work has occurred and continues on several sanitary sewer pump stations and a storm water pump station.