From PA Chamber of Business & Industry The first of two weeks of budget hearings was held last week, as lawmakers on the House and Senate Appropriations Committees met with the heads of state agencies and state row offices to discuss the proposed appropriations in Gov. Tom Wolf’s 2018-19 state budget, current issues facing each department and what they foresee coming up in the year ahead. One of the first hearings – the House Appropriations Committee’s hearing with the Independent Fiscal Office – focused partly on the governor’s proposed severance tax on the natural gas industry. IFO Deputy Director Mark Ryan stated that the cost of implementing a new severance tax – which would be in addition to the existing impact tax – would amount to $17 million. Several Republicans on the committee expressed their disagreement with the administration over raising taxes to generate more revenue. The PA Chamber agrees that a severance tax – which unfairly singles out the natural gas industry – is both unfair and hurts the state’s economic competitiveness, which is why our organization is leading a broad-based coalition in opposition to higher energy taxes in this year’s budget negotiations. The IFO also said that while Gov. Wolf’s proposed increase in the minimum wage to $12 an hour would generate more spending and economic activity, it could come at a price – it is likely that the hike in minimum wage would also decrease jobs. In fact, last year, the IFO studied the impact of a minimum wage increase and found that it would cost the state about 54,000 jobs and raise $60 million less than proponents thought it would. The House Appropriations Committee also focused its attention on job creation at hearings with the Department of Community and Economic Development and the Department of Labor and Industry last week. According to a Capitolwire story, Committee Chairman Stan Saylor, R-York, said he wanted to “take a deep dive into the effectiveness of our current programs for job creation,” stating his belief that money dedicated toward the state’s Workforce Development Board would be better spent on direct job training. Secretary Dennis Davin of DCED and Secretary Jerry Oleksiak of L&I spoke up in support of Gov. Wolf’s proposal to increase funding for a new state Apprenticeship and Training office and boosting spending within the Industry Partnerships program by $3 million in next year’s budget. According to both secretaries, the extra apprenticeship program funding would be used to double the number of registered apprentices working in manufacturing, businesses and the labor trades and expand apprenticeship opportunities for youth and adults. They mentioned the Shell cracker plant in Beaver County as an example of a place where new manufacturing jobs will be created, and that skilled workers will be needed to fill them. They also discussed legislation that aims to consolidate workforce development programs within L&I, DCED and the Department of Human Services to maximize their effectiveness. “This proposal would give DCED, the agency that is tasked with keeping current employers in Pennsylvania and bringing new opportunities into the state, the much-needed tools to help connect employers who have job openings with workers qualified to fill them,” said the bill sponsor, Rep. Justin Walsh, R-Westmoreland. At the Senate Appropriations budget hearing with the Department of State, the ongoing issue of the state’s Congressional maps was raised and there was some controversial discussion when Acting Secretary Robert Torres said that the administration does not intend to publish in every county the maps that were imposed by the state Supreme Court last Monday – and that they would focus on sharing the information through press releases, the DOS website and social media. “You’ve changed the maps in the state. Even if the Supreme Court doesn’t order it, I believe the voters should know where they are within those districts, and the maps should be published,” said Sen. Mario Scavello, R-Monroe. According to a Capitolwire story on the hearing, Jonathan Marks, commissioner of the Bureau of Commissions, Elections and Legislation, said that the issue is publishing maps in newspapers in every county, as is required in Pennsylvania statute under normal circumstances. “When a redistricting plan is enacted, there’s a publication requirement …. Where you would publish in two newspapers of general circulation in every county,” Marks said. “The Court has not mandated that … at least not yet, but we are using other avenues to get the word out to voters.” Budget hearings will continue all this week. The Senate Appropriations Committee is hosting all of its budget hearings in Hearing Room 1 of the North Office Building in the state Capitol; while the House Appropriations Committee is holding all of its hearings in Room 140 of the Main Capitol Building. The budget hearing schedule, which is subject to change, is available on the General Assembly website; the PA Chamber will be reporting noteworthy information from these hearings in next week’s edition of Sentinel.
From ChamberChoice
It seemed like it had taken the EEOC forever to issue regulations as to whether employers could provide employees an incentive to participate in a wellness program and still have the program be voluntary. The issue of “voluntary” is important because under the Americans with Disabilities Act (ADA) any wellness program that includes a disability-related inquiry and/or medical exam, participation must be voluntary. The same rule is applicable to any information that is protected under the Genetic Information Nondiscrimination Act (GINA).
In July 2016, the EEOC issued long awaited rules under the ADA and GINA relating to wellness plans. The rule provided that employers could implement penalties or incentives, limited to 30 percent of the cost of self-only coverage, to encourage employees to disclose ADA protected information and certain genetic information without causing the disclosure to be involuntary. These rules were applicable to plans beginning on or after Jan. 1, 2017.
Since then, the EEOC rules have been challenged by AARP. The AARP’s claim is that the 30 percent incentive or penalty still renders participation involuntary, since there could be some employees unable to pay the penalty and in effect forced to provide the protected information. The court agreed with AARP finding that the EEOC was arbitrary and did not provide enough evidence in its rulemaking to justify the 30 percent rule.
The court sent the rules back to the EEOC for further review and analysis. In the meantime, after the court’s decision was issued, AARP requested the court to reconsider its decision and vacate (render void) the EEOC’s regulations, to which the court agreed.
Vacating of the rules is not effective until Jan. 1, 2019. Therefore, the current rules permitting the 30 percent incentive/penalty remain in place during 2018. The EEOC has not indicated a time frame for the provision of new rules. Therefore employers will want to stay on top of this issue as to the future operations or offering of any wellness programs.
In conclusion, employers may stay the course for its wellness program in 2018. However, due to the vacating of the EEOC incentive rules, 2019 will bring new rules. As it relates to wellness programs, employers should remember that there are separate applicable rules under the Health Insurance Portability and Accountability Act (HIPAA). The HIPAA wellness rules are not affected by the vacating of the EEOC rules.
More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest member, Viamedia, to help us fulfill our mission.
Headquartered regionally in the Lehigh Valley and nationally out of New York and Lexington, Ky., Viamedia has a local office in Bloomsburg and works with its client to provide advertising solutions for businesses and organizations of all sizes. Viamedia works with national networks and television providers (cable and satellite) to provide clients with local, regional and national exposure on national networks such as HGTV, ESPN, Fox News, History, and much more. It also offers a full suite of digital assets. Locally, Viamedia has an office in the Bloomsburg Regional Technology Center, right next door to the Chamber at 240 Market St., and can be reached at 570-387-5266. Local representative Colleen Liddick can also be reached via email. For more information, visit Viamedia’s website.
The Columbia Montour Chamber’s annual golf tournament in 2018, sponsored by Williams will be held on Thursday, May 24 at Mill Race Golf Course in Benton. There will be a 10 a.m. shotgun.
Registration and sponsorship forms will be going out in March’s ChamberPack, which members should receive in their mailboxes the week of March 5. This information is also available on the tournament page, and registrations and sponsorships can also be purchased online.
Member News
- Today is the last day that Thrivent Financial will be collecting items for the Ronald McDonald House of Danville. Thrivent has a collection box at its office located at 417 W. Main St., Bloomsburg, and is collecting small snack items and beverages such as K-cups, juice boxes, and individually-wrapped snack items like granola bars, crackers and cookies. Anyone interested in making a donation should drop it off at Thrivent’s office by 3 p.m. today. Tomorrow, Thursday, Feb. 22, the public is invited to join Thrivent at the Ronald McDonald House between 5-8 p.m. where these donations will be presented to RMHD, and attendees can hear about the mission and focus of RMHD, take guided tours of the house and enjoy some hors d’oeuvres and a dessert buffet.
- Friedman Electric will host an
art exhibit featuring local artist Claude Harrington at its Bloomsburg store, located at 1100 Old Berwick Rd., this afternoon, Wednesday, Feb. 21, from 3-5 p.m. There is no cost to attend and light refreshments will be served. Attendees can meet the arist, enjoy the arts and grab a snack while also having an opportunity to look around Friedman Electric’s Lighting Design Center, which features a wide range of products to keep homes and businesses a place of beauty, comfort and energy efficiency. This would make a perfect and convenient stop on the way to tonight’s Business After Hours, which is just down the street from Friedman Electric at Art of Floating and begins at 4:30 p.m.
- The Montour Area Recreation Commission (MARC) recently released its 2017 annual report. The complete report is available on MARC’s website.
- The Atlantic Sunrise pipeline construction continues to make steady, safe and environmentally responsible progress, according to Williams. Construction is already more than 30 percent complete, keeping the project on schedule to begin flowing natural gas later this year in late summer. To keep residents, businesses and other interested stakeholders up to date on construction activities, Williams has prepared an Atlantic Sunrise Construction newsletter for Schuylkill, Northumberland and Columbia counties. In it, you’ll find information on the latest round of the Atlantic Sunrise Community Grant program, and a mention of Williams’ recent nomination for the Chamber’s 2018 Large Business of the Year award.
- The Borough of Danville recently transitioned to new recycling tubs for its curb side recycling program. If you or anyone you know is still using the black plastic buckets for recycling, please call the Danville Borough office at 570-275-3091, ext. 0 to request a new recycling tub.
- The Central Susquehanna Intermediate Unit’s technology group will conduct a pair of computer fairs for middle and high school students in March, and is seeking professionals in business and the community to serve as judges in specific categories. The middle school fair will be held on Monday, March 5 while the high school fair will be on Monday, March 26. Both will be held at CSIU 16’s building located at 90 Lawton Lane, Milton, and will run from 9-11 a.m. Categories that need judges are animation, computer fair logo, digital movies, graphic design, programming and web page design. For more information, or if interested in serving as a judge, contact Bill Herald as CSIU via email no later than this Friday, Feb. 23.
- The Bloomsburg Municipal Airport, which is operated by the Bloomsburg Municipal Authority, will hold a Fly-In/Drive-In Breakfast on Saturday, March 3, from 8 a.m. – noon at its location at 301 Airport Rd., Bloomsburg. The event is free and open to the public, however donations are suggested, and will be held rain or shine.
- The local PA CareerLink centers have scheduled their 2018 job fairs. The local one in our area will be held on Wednesday, May 9, from 4-7 p.m. at Columbia-Montour Area Vocational Technical School, located at 5050 Sweppenheiser Dr., Bloomsburg. There will also be job fairs during May just outside of the area at Shikellamy High School in Sunbury on May 2 and at the Selinsgrove VFW in May 30. Later in the year, there will be one at the Best Western in Lewisburg on Sept. 6. The registration links for employers are now open for the three May events. See the flyer for more information as well as registration links.
The Atlantic Sunrise Community Grant program has granted more than $2 million to 268 organizations through Pennsylvania since its inception in 2015. Williams is now accepting grant applications for its latest round of grants, which will be the seventh round, and application deadline for this spring cycle is next Thursday, March 1. Two cycles of Atlantic Sunrise grant awards are announced each year – spring and fall.
Please visit the Atlantic Sunrise Community Grant program page to learn more about the application process, eligibility guidelines, and how organizations are utilizing grant funds to improve their local communities. The application can also be accessed on the same website.
Several Chamber members have benefited from receiving grants during previous grant rounds since the program’s inception in 2015, including the Columbia County Traveling Library, the Foundation of the Columbia Montour Chamber, Hemlock Township, Pennsylvania College of Technology Foundation, Buckhorn Volunteer Fire Co., Camp Victory, Benton Rodeo Association, Bloomsburg Theatre Ensemble and the Columbia-Montour Area Vocational Technical School.
More than 400 businesses and organizations belong to the Chamber to receive benefits and support efforts to strengthen their businesses and our region. Increased membership allows us to offer additional programs and benefits, have a stronger voice in advocacy and be involved in more activities and initiatives in our communities. The Chamber welcomes its newest member, New York Life – Elizabeth Kelchner, Agent, to help us fulfill our mission.
A native of Berwick, Elizabeth Kelchner is an independent agent of the New York Life Insurance Company. Although she operates out of her office in Scranton, she lives in Columbia County, and has been a New York Life agent since 2016. She offers a variety of products through New York Life that can help meet a number of insurance and financial needs, including but not limited to retirement, college funding, long-term care, lifetime income strategies, and much more. She can be reached at 570-854-1869, or visit her website or Facebook page.
The Chamber’s energy consulting partner, OnDemand Energy, helps businesses and individuals save money on electric and natural gas costs by managing the complexities of energy supply, delivery, and consumption. In January, OnDemand was acquired by Kinect Energy, Inc., a World Fuel Services company. Representatives expect that this acquisition will further benefit chamber members.
OnDemand/Kinect Energy will continue to serve all segments of the chamber membership from residential through large commercial and industrial customers. With Kinect Energy, our ChamberChoice Energy Program will have increased capabilities to provide marketing and back office support to all chambers, allowing education to smaller members and residents on the energy program value. Finally, the ChamberChoice Energy Program large commercial offerings, particularly on multi-state or international chamber customers, will be significantly enhanced through a much broader and comprehensive set of energy products and services.
“OnDemand has been the exclusive energy consultant for our ChamberChoice Energy Program and has done an incredible job delivering market leading energy products and services over the last 10 years. Their combination with Kinect Energy will strengthen our existing energy program and now enable our Chamber members to realize a much broader and comprehensive suite of energy products and services while continuing to allow them to focus on their core business,” said Sam Weber, president of ChamberChoice.
Members of the Columbia Montour Chamber have collectively saved millions of dollars on their energy costs through the program since it began. To find out if you can save on your electricity and natural gas costs, contact OnDemand Energy at 888-566-3362 and tell them you’re a member of the Chamber for a no-cost, no-obligation consultation. Or, Chamber staff would be happy to facilitate and introduce you to an OnDemand rep, so, if you would prefer that route, call the Chamber office at 570-784-2522.
From ChamberChoice
In Jan. 2017, it was reported that the Department of Labor (DOL) published final regulations governing the ERISA claims and appeals process that will apply to all claims for disability benefits. The effective date of the rule has been delayed from Jan. 1, 2018 to April 1, 2018. These regulations mirror amendments to the claims procedures for group health plans added under the Affordable Care Act. The amendments require plans to satisfy additional procedural and notice requirements for disability claims. The Department determined the need to revise regulations to provide greater transparency and accountability, since disability cases dominate the ERISA litigation field.
Overview of Final Rules
The new regulations apply to all ERISA-governed plans that provide disability benefits, if the plan conditions its availability to the claimant upon showing of disability. This not only includes short-term and long-term disability plans, but it can also include other plans that condition the availability of benefits upon the plan’s determination that a disability exists, such as 401(k) plans and pension plans. If the determination of a disability is made by a person or entity other than the plan, then the disability claim is not subject to the final rule.
The new regulations include the following improvements for the processing of claims and appeals for disability benefits:
– Avoiding Conflicts of Interest. Plans must ensure that disability claims and appeals must be decided independently and impartially, meaning claim decision makers should not be incentivized to deny claims.
– Disclosure Requirements. Benefit denial notices must contain a complete discussion on a decision, including:
o Why the plan agreed/disagreed with views of health care and vocational professionals, or with disability determinations made by the Social Security Administration.
o Statement that the claimant is entitled to access relevant documents and their claim file.
o The plan’s internal rules, guidelines, protocols or standards used in deciding the claim. If none exist, the letter must state that fact.
o Benefit denial letters have to be provided in a culturally and linguistically appropriate manner.
– Right to Review and Respond to New Information Before Final Decision. Claimants must be given notice and a fair opportunity to respond if the appeal denial is based on new or additional rationales or evidence that were not included when the benefit was denied at the claims stage.
– Exhaustion of Claims and Appeals Processes. Claimants are not barred from suing due to failure to exhaust the administrative remedies under the plan when the plan itself failed to comply with its claims procedures (except for
certain minor failures).
– Coverage Rescissions are Adverse Benefit Determinations. Retroactive rescissions of coverage are considered benefit denials that trigger the plan’s appeals procedures.
What Employers Need to Consider
• The final regulations apply to claims for disability benefits filed on or after April 1, 2018.
• Know which plans (besides short or long term disability) have disability triggers which require compliance with the final rules.
• Review whether the terms of the plan should be amended to rely on the disability determination by another party (such as the Social Security Administration) to avoid compliance with the final rule.
• Ensure that your Plan Document, Summary Plan Description and any communication materials are in compliance with the rule.
• Reach out to any vendors administering disability benefits as to their denial letter, including right to access a claim file and a fair opportunity to respond to any new or additional evidence relating to the claim.
Conclusion
The enhanced claims procedures for disability benefits affect plan administrators, participants, beneficiaries and third party administrators of disability benefit plans. The details of the final regulations need to be studied and new procedures implemented before the applicability date of April 1, 2018. Thus, employers should begin to review their disability benefit programs to ensure compliance with these final rules.
business.pa.gov is a new website intended to be a one-stop shop for entrepreneurs in PA.
From the Governor’s Office
On Feb. 7, Governor Tom Wolf launched the new PA Business One-Stop Shop to serve as a sole source to guide entrepreneurs and small businesses through all stages of development, from planning and startup to operation and expansion.
“I know first-hand how difficult it can be as a business owner to navigate through the complex web of processes, requirements, and resources that are needed to successfully run a business,” Governor Wolf said. “That’s why I tasked my administration to come together across agencies to simplify the process so entrepreneurs can get back to doing what they do best – creating, innovating, and succeeding in Pennsylvania.”
The PA Business One-Stop Shop includes resources for planning a business, registration and permitting, hiring employees, receiving funding and technical assistance, and more. It is intended to take the guesswork out of many business operations and procedures, and serves as an equalizer for any who want to do business here.
Before the One-Stop Shop, a small business owner or entrepreneur would be required to seek out information from several different agencies and organizations throughout the planning, startup, and operation processes. The PA Business One-Stop Shop consolidates all of this information into one website, and any questions can be directed to a single phone number that provides one-on-one customer service by phone as well.
“One of the biggest barriers to entry that an entrepreneur can face is the difficulty of knowing what steps to take to start a business, and then knowing what further steps to take to grow that business,” Department of Community and Economic Development (DCED) Secretary Dennis Davin said. “With the PA Business One-Stop Shop, what used to require endless searching for websites and countless phone calls – or spending hundreds or thousands of dollars on services to assist in that process – now can be found on one website, with one phone number. It’s great news for those looking to start or grow a business in Pennsylvania.”
The process for creating the PA Business One-Stop Shop was truly an interagency state government collaboration between the departments of State, Labor and Industry, Revenue, and the Office of Administration. To identify the needs of the business community, Wolf Administration officials held planning sessions and user testing with a wide variety of internal government and external stakeholders and partners to ensure different perspectives and input was received from communities and businesses across Pennsylvania.
In addition to this new one-stop shop website, the Pennsylvania Small Business Development Center (SBDC) network is available for personalized, one-on-one services for entrepreneurs. Locally, the Wilkes University SBDC and Bucknell University SBDC service Columbia and Montour counties, respectively, and are available to meet with individuals looking into starting a small business. These meetings can take place at the SBDC locations, at the Chamber office, or at an alternate location agreed upon by each party.