PRLA Restaurant & Lodging Matters Winter 2021

Winter 2021 • PENNSYLVANIA RESTAURANT & LODGING matters • 11 Partisan Politics It is hard to imagine life before COVID, even within the legislature, but this year’s session continued to display the partisan divide that only seems to grow as time goes on. While some legislation was achieved with bi-partisan support—key issues like elections and COVID restrictions caused more dissension than unification. Gubernatorial Power Not only has Gov. Wolf held complete control over COVID regulations without a single court definitively overruling him, but he also wielded the veto pen more than ever. In 2019, only four bills were vetoed—in 2020, he vetoed 19. Overtime Rule Gov. Wolf’s increase in the salary threshold took effect in 2020 with the first increase to $40,500 slated to take effect in October of this year. This proposed increase led to a major bipartisan piece of legislation… ...Minimum Wage Increase SB 79 (Tartaglione—D, Philadelphia) was overwhelmingly passed in the Senate with a vote of 42-7. The legislation would have increased the minimum wage in PA to $9.50/hour, preserve the tipped wage, rescinded the overtime regulations, and would have banned restaurants from deducting credit card processing fees from a server’s tips. Unfortunately, the House declined to consider the legislation. H to R Conversion One of PRLA’s legislative priorities for this session was passed and signed by the governor. It allows the holder of a Hotel license in existence before 1949 with the room exemption to convert that H license to a Restaurant license for a fee. The bill will take effect in early 2021. Sales Tax Parity for Brewers PRLA worked closely with the legislature and our partners at the Brewers of PA to develop a standard for brewers to remit sales tax that ensured parity between them and restaurants. Other COVID Items The legislature approved legislation that would allow school and property tax payments to be delayed if a county chose to do so. The Department of Revenue eliminated the pre-pay requirement for the first few months of COVID. The PLCB eliminated renewal fees for 2021 and allowed licensees until December 31, 2020, to renew their 2020 license. Mixed Drinks To-Go In May, the legislature passed, and the Governor signed, legislation that permits licensees to sell mixed drinks to go. The legislation lasts for as long as the emergency declaration is in effect or restaurants are allowed to operate above 50% capacity. PRLA is working to make this legislation permanent. Reopening the Hospitality Industry Despite initial votes in the House & Senate that showed strong support for reopening the industry to 50%, allowing bar seating, and eliminating the meal requirement, 12 House Democrats flipped their vote to sustain the Governor’s veto of the bill. $1.3 Billion CARES Funding One of the biggest disappointments this session was when the legislature chose to use the remaining $1.3 billon in CARES funding to balance the budget instead of helping the industry that for months they stated needed the most help. Future Focus PRLA will be revisiting our priorities on association health plans, minimum wage/overtime threshold, COVID recovery and relief and holding legislators accountable for their support, or lack of support of the industry in the 2021/22 session. SESSION REVIEW 2019–2020