Committee Hearing, November 17, 2009

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, November 17, 2009 1:15 p.m. - - - PRESENT: COUNCILWOMAN MARIAN B. TASCO, CHAIR COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN BILL GREEN COUNCILMAN WILLIAM GREENLEE COUNCILMAN JAMES F. KENNEY COUNCILWOMAN BLONDELL REYNOLDS BROWN BILLS 080746, 090119, 090687, 090688 and 090690 - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Good afternoon. I'd like to call the Committee on Finance to order. We do have a quorum in the presence of the Councilman Green, Councilman Greenlee, Councilman Goode and Councilwoman Blondell Reynolds Brown and myself. I'd like to have the Clerk read the titles of all of the bills that are to come before this committee today.

Bill No. 080746, an ordinance amending Section 17-104 of The Philadelphia Code, relating to "Prerequisites to the Execution of City Contracts," by adding a new subsection prohibiting the acceptance of bids on City contracts from, or the execution of original or renewal contracts with, corporations or other business entities that do business in Iran or Sudan, and imposing duties on the Procurement Department with respect to said prohibition and certain other related matters; and amending Section 19-201 of 3 11/17/09 - FINANCE - BILLS 080746, etc. The Philadelphia Code, relating to "City Depositories," by adding provisions restricting City Depositories from providing certain services to corporations, banks, or financial institutions that do business in Iran or Sudan, and imposing duties on the City Treasurer with respect to said restrictions, and amending Section 11 22-1001, relating to "Investments," by adding a new subsection requiring the Board of Pensions and Retirement to divest from business entities doing business in Iran or Sudan, all under certain terms and conditions. Bill 090119, an ordinance 18 amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by adding the definition of "certified sustainable business" and by excluding from the definition of receipts, any receipts from the specific business conducted by certain certified sustainable businesses, 4 11/17/09 - FINANCE - BILLS 080746, etc. under certain terms and conditions. Bill No. 090687, an ordinance 4 amending Bill No. 090212 (approved May 27, 2009), entitled "An ordinance to adopt a Capital Program for the six Fiscal Years 2010-2015 inclusive," by revising and adding certain projects, amounts and sources. Bill No. 090688, an ordinance 11 amending Bill No. 090213 (approved May 27, 2009), entitled "An ordinance to adopt a Fiscal 2010 Capital Budget," by revising and adding certain projects, amounts and sources. Bill No. 090690, an ordinance 17 amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," to provide for a tax credit to surety companies that provide construction surety bonds to Disadvantaged Business Enterprises, all under certain terms and conditions.

Thank you very much. 5 11/17/09 - FINANCE - BILLS 080746, etc. The Chair would like to recognize Councilman DiCicco. We now will call on the Administration to come forth regarding Bills 090687 and 090688, which is a continuation from our hearing on 10/20/09. (Witnesses approached witness table.)

Good afternoon, members. Steve Agostini, Budget Director for the City of Philadelphia.

Good afternoon.

And Chris Donato, Deputy Budget Director for Capital.

Proceed with your testimony.

Well, my apologies. We had not planned on giving testimony. I understand this bill was before you at an earlier point in time. At the moment, we would respectfully ask Council to move on both of these bills, 6 11/17/09 - FINANCE - BILLS 080746, etc. because for one of them, it would allow us to acknowledge the receipt of grant funding of approximately $8.4 million of a grant that would allow us in part to make an initial payment that had been anticipated in the budget but provide us the funds to do so for our refresh of the 800 megahertz public safety communication system. I understand that Council has had some questions about this; most notably, the circumstances surrounding the grant application itself, as well as what would happen to the additional resources. As I've said to at least one of your colleagues, it would be my intention, if it is the desire of Council, that before any action were taken to spend these funds, that the Budget Office would reserve those funds and plan on coming back to Council with a plan for the expenditure of those funds in advance of spending anything. But we would ask respectfully that you would 7 11/17/09 - FINANCE - BILLS 080746, etc. approve both of those items and move them forward given that it does represent some significant resources to the City's budget.

The Chair recognizes Councilman Green.

Good afternoon.

Good afternoon.

Just for the record, what is the negative impact of holding this bill? We can still accept the funds, put them in our bank account?

There would be no negative impact, Councilmember.

For the holding the bill?

For holding the bill.

As long as we pass it by the end of the fiscal year?

Correct. And if you were to do that, I think what we would contemplate is coming back with 8 11/17/09 - FINANCE - BILLS 080746, etc. either an end-of-year amendment for the capital spending in '10 or some recognition of the funds for the FY11 Capital Plan.

And also just for the record, there was testimony here on the 20th that sort of there was an idea of where these funds were going to be spent, et cetera, and is it fair to say that at this moment, $6.4 million of this grant funding is not identified for a specific purpose or project and that by putting it in the capital budget, we would in fact be writing a blank check without having an understanding of what the capital money would be spent for?

Councilmember, it is a fair statement. It's actually 6.8 million, that if that were made available, it would represent an addition in resources to our 9-1-1 funding for a variety of program and capital expenditures. And you are correct, we do not have at this moment a plan on how 9 11/17/09 - FINANCE - BILLS 080746, etc. those would be spent. It would be subject of subsequent requests for appropriation authority from this body. So, yes, that is indeed a fair statement. At this moment, we don't have a plan for how to spend those funds.

But if we did pass this budget, you wouldn't have to come back to us? I mean, you could spend the money?

Councilmember, we could, but I think honestly --

I'm not disputing your word at all.

I know. Yes, in theory, were there someone else sitting in this chair representing the City, they could indeed move forward. I would commit to you we would reserve, before we would appropriate anything, we would come to you with a plan. But if you decided to hold it, I would understand that as well, and to your point earlier, no, it would not be a huge problem for us. We 10 11/17/09 - FINANCE - BILLS 080746, etc. would just accommodate that and come back to this body at a later point in time.

Thank you.

Questions from other members of the Committee? (No response.)

Thank you very much.

You're welcome.

Next we will have -- let me report that Bill No. 13 090690 will be held. Bill No. 080746. The Chair recognizes City Treasurer Rebecca Rhynhart, Daniel Kutner and Kat Harrison. (Witnesses approached witness table.)

I'm sorry. Let me just back up here. Panel will be the City Treasurer and Hugh Ortman. You can all just sit there. We'll call you when your time comes. Good afternoon.

Good afternoon, 11 11/17/09 - FINANCE - BILLS 080746, etc. Councilwoman Tasco. My name is Rebecca Rhynhart, City Treasurer, City of Philadelphia. I am here to testify on behalf of Bill No. 080746. Bill No. 080746, introduced by Councilman Kenney, amends Section 19-201 of The Philadelphia Code, entitled "City Depositories," by adding provisions restricting City Depositories from providing certain services to corporations, banks or financial institutions that do business with Iran or Sudan. According to the bill, the City Treasurer shall not keep any City funds on deposit in any bank or other financial institution that knowingly provides certain services to entities doing business in Iran or Sudan. The Administration has no 21 objection to this bill and the proposed amendments. I note, however, that the Law Department has advised that with respect to Iran, where an extensive federal sanctions regime is currently in 12 11/17/09 - FINANCE - BILLS 080746, etc. place, federal law preempts local governments like the City from implementing laws in that field of foreign affairs. Accordingly, if the bill becomes law, the Administration must evaluate and determine how to implement the bill within the confines of the law. With respect to Sudan, federal law specifically allows contracting and related rules within certain confines that the bill follows, so the Law Department advises that the Sudan provisions do not present a preemption problem. This concludes my testimony. I am happy to answer any questions you may have.

Mr. Ortman, do you have any testimony? COMMISSIONER ORTMAN: Yes, I do.

Go ahead. COMMISSIONER ORTMAN: Thank you. 13 11/17/09 - FINANCE - BILLS 080746, etc. Good afternoon, Councilwoman Tasco and members of the Committee on Finance. I am Hugh Ortman, Procurement Commissioner for the City of Philadelphia, and am here to offer testimony in support of Bill No. 080746 introduced on October 16, 2008 by Councilman Kenney. This bill proposes to amend Section 17-104 of The Philadelphia Code by adding a new subsection prohibiting the acceptance of bids on City contracts from, or the execution of original or renewal of contracts with, corporation or other business entities that do business in Iran or Sudan. This bill also imposes some additional duties on the Procurement Department. Specifically, this bill would require that no City agency, in the procurement of goods and services, may accept any bid from nor enter into an original or renewal contract with nor purchase any product manufactured by any 14 11/17/09 - FINANCE - BILLS 080746, etc. business entity doing business with Iran or Sudan. Proposed amendments to this legislation would add on exception to this provision where there is a federal override in place with respect to Iran or Sudan, as applicable, or unless an exclusion from disqualification applies. This bill further requires that each City bid and contract must contain a clause stating that the business entity does not do business in Iran or Sudan. In addition, the proposed amendments would add that no products being delivered pursuant to the contract were manufactured by an entity doing business in Iran or Sudan, unless a federal override with respect to Iran and Sudan, as applicable, is in place or exclusion from disqualification applies. The proposed amendment would allow the Procurement Department to waive compliance with the provisions of Subsection 17-104(3)(b) on several grounds enumerated in the bill. The 15 11/17/09 - FINANCE - BILLS 080746, etc. Procurement Department has no objection to this bill and the proposed amendments. I note, however, that the Law Department has advised that with respect to Iran, where an extensive federal sanctions regime is in place, federal law preempts local governments like the City from implementing laws in that field of foreign affairs. Accordingly, if the bill becomes law, the Administration must evaluate and determine how to implement the bill within the confines of the law. With respect to Sudan, federal law specifically allows contracting and related rules within certain confines that the bill follows, so the Law Department advises that the Sudan provisions do not present a preemption problem. The Administration agrees that we should participate in the movement of local governments to send a message that we oppose regimes such as Iran and Sudan that do not abide by the law of nations 16 11/17/09 - FINANCE - BILLS 080746, etc. and/or respect fundamental human rights of their own citizens. This concludes my testimony. I would be happy to answer any questions from the Committee.

Thank you very much. The Chair recognizes Councilman Kenney.

Thank you, Madam Chair, and thank you very much for your testimony. Give a little bit of history, which I think many of the members of this Council know. With basically groundbreaking legislation many, many years ago, the Sullivan Principles were adopted here in the City of Philadelphia and in many other cities and states around the country. At the time that that legislation was being considered and eventually passed, there were criticisms that cities should not be involved in these type of national/international issues, and I 17 11/17/09 - FINANCE - BILLS 080746, etc. think that we've seen as a result of what happened in South Africa, as a result of the pressure that was given around the country to the destruction of apartheid, that that was incorrect. I myself when I came to Council here copied that idea and applied similar restrictions based on the MacBride Principles to City procurement and depositories, and, again, other cities around the world began to understand some of the issues relative to the northern end of Ireland and followed suit. I don't think only because of that, but I think it contributed to the kind of peace that we have today in the power sharing. Similar circumstances I would like to apply to Sudan and Iran. The question I have is is that if federal preemption, I would assume -- and there's no one from the Law Department here that I know of. As long as we're not reversing or exceeding what the federal law requires, I don't understand why there's a preemption 18 11/17/09 - FINANCE - BILLS 080746, etc. problem. If we were trying, hypothetically, to reverse what the federal government has done in sanctioning Iran by still doing business with them, I can understand. I can see if we were trying to exceed what the federal law has already in place. But if we're mirroring the federal law in our own statute, I don't think presumption is really even an issue. So, again, if there's anything you could add to enlighten us or the record in that regard, please feel free, but, again, I don't think we're reversing or exceeding the current federal law, so I think it should be safe. And, again, there's no one here from the Law Department, so...

Other comments?

I think she's going to try to answer the question.

In terms of a 19 11/17/09 - FINANCE - BILLS 080746, etc. response to that, I mean, that seems like it makes sense, but, I mean, I think the Law Department's opinion is that we'll have to look at the bill in terms of implementation in regards to the federal law, but it didn't -- I don't think the Law Department was saying we couldn't pass the bill.

In some ways it's antithetical to the federal law in that it would preclude us from being involved and helping to put this pressure on this rogue country that has no respect for anyone. So, I mean, we're just simply echoing, I think, in this legislation what the federal restrictions are now. And, again, if the Law Department needs to interpret it further down the road, I understand, but I want that for the record, that there's no 22 intersection to reverse or extend or expand what we're doing here more than the federal government, but I think we should all be kind of pulling the same 20 11/17/09 - FINANCE - BILLS 080746, etc. way and rowing the same direction.

And that's our understanding as well.

Okay. Thank you.

Thank you very much. Any other questions for this panel? Councilman Green.

My questions are all legal also, which sort of puts you in a bad position, I guess. If you're going to have a legal opinion here, perhaps the person who wrote it could join us for these hearings. But I want you to be clearer in your testimony. Are you saying that you support this bill?

Yes, I would say the Administration supports the bill.

Okay. Will you enforce this bill as written?

To the extent 21 11/17/09 - FINANCE - BILLS 080746, etc. that we can according to the law, yes.

So it's your testimony that to the extent this bill 5 doesn't violate federal law, you will enforce it?

That's correct.

It's also your testimony, then, that you will not enforce things that the Law Department feels violate federal law?

Right. I would follow the Law Department's lead on that.

Just for the record, this has been a significant issue that my office has had with the City Solicitor and many city solicitors of the past. It's been an issue for Council, and, that is, it is my firmly held belief that in order for the Law Department to not enforce a law passed by this body in the methods laid out in the Charter, that the Law Department must go to court and have that law declared invalid in order to not enforce it. And I'd just like for 22 11/17/09 - FINANCE - BILLS 080746, etc. the record that's what we would expect the Law Department -- that's certainly -- I'm speaking only for myself. That's what I expect the Law Department to do or you to do with respect to any aspect of this law that you find unenforceable, have it declared invalid in a court of law. Otherwise, it is your duty and the duty of every officer of the City to enforce city laws passed by this body. I just wanted to make that clear for the record that that's my view.

Okay.

Madam Chair, just one other for the record. We have taken out the provisions relative to the Pension Board. They have decided on their own to do resolutions appropriately to respect this proposed ordinance, so we don't have the need for language relative to the Pension Board in this particular ordinance, and I just wanted to make sure that the record is clear on that, and we have a letter 23 11/17/09 - FINANCE - BILLS 080746, etc. from the Pension Board saying what I had just articulated to you. Thanks.

Thank you very much. We just got a copy of the opinion from the Law Department. Ms. Marsh, could you have Mr. Rosman over here, please, while we're going through this hearing. We'll call you back. We need to have him here to sort of like hear the comments from the Councilmembers as well as discuss what their action might be given the fact that we're not superseding or going around the federal law.

Sure. Makes sense.

Thank you. Next we have a panel representing Daniel Kutner, Consul General of Israel, and Robin Schatz, Jewish Federation of Greater Philadelphia. 24 11/17/09 - FINANCE - BILLS 080746, etc. (Witnesses approached witness table.)

Thank you, Chairwoman Tasco, members of the Committee, ladies and gentlemen. Thank you for inviting me today to address you on this vital issue of Iranian divestment. The State of Israel supports U.S. governmental policy, in accordance with UN Security Council resolutions, to put an end to Iran's uranium enrichment program through a combination of diplomatic engagement and economic and financial sanctions. The City of Philadelphia can contribute greatly to the success of these efforts by joining in the policy of a divestment from firms that support Iranian economy and military sectors. Iran poses a severe danger to the stability of the Middle East and threatens vital U.S. interests. It supports terror organizations and stands 25 11/17/09 - FINANCE - BILLS 080746, etc. behind terror attacks against American and allied troops in Iraq. It also provides guidance, money and weapons to Hizballah in Lebanon and to the Palestinian Hamas, as well as to other Islamist organizations that oppose the peace process and fight reconciliation of Palestinians and Israelis. In its pursuit of regional hegemony, Iran poses a danger to key American allies like Saudi Arabia, Israel and the Gulf states. It encourages and supports Islamist opposition movements throughout the Middle East, from Morocco and Yemen, Jordan and Iraq. Iran is engaged in a nuclear program in defiance of international community and the United Nations Security Council resolutions. It has developed its capabilities in secret until forced to admit their existence when information was made public. It has refused to answer the questions posed by the international Atomic Energy Agency, to 11/17/09 - FINANCE - BILLS 080746, etc. the point that the issue was transferred to the UN Security Council. Since then, four resolutions have demanded that Iran stop its enrichment program and cooperate with the IAEA. There is a consensus among the main Intelligence agencies that Iran is secretly pursuing a military nuclear capability. A nuclear-capable Iran will be even bolder in pursuing its regional hegemonic ambitions. When coupled with its already existing missile capabilities, it can threaten countries 750 miles away, including Israel, I may add, and in the near future, even 1,550 miles and more. It could even put fissile material in the hands of terrorist groups and threaten Iran's perceived enemies, including the United States and Israel. International pressure is essential in order to bring the Iranian leadership to desist from its enrichment program. Iran has changed its policies 27 11/17/09 - FINANCE - BILLS 080746, etc. in the past as a consequence of international pressure and it might do it again. Only the threat of crippling sanctions will convince the Iranian leadership to show flexibility in the negotiating table. Iran's economic situation is not good, after the decline of oil prices, and internal unrest, following irregularities in the last presidential elections, has increased the vulnerability of their regime. It is essential to increase pressure on Iran so as to deny it the investments and technology needed by its obsolete oil sector and strategic industries, now increasingly under the control of the Iranian Revolutionary Guards Corps. The City of Philadelphia can effectively contribute to this worldwide pressure by adopting a policy of assuring that funds do not support companies helping the Iranian oil or defense sectors. Deterring western oil and defense companies from investing or 28 11/17/09 - FINANCE - BILLS 080746, etc. selling to Iran will show its leadership the dangers of pursuing its policies in defiance of the international community and, therefore, will strengthen the hand of U.S. and international negotiators in their attempt to bring about the desired change in Iranian nuclear policy by diplomatic means. Thank you very much.

Thank you very much. We welcome you to the City Council. Hi, Ms. Schatz. How you doing?

Hello, Chairwoman Tasco. It's a pleasure to be back and on this side of the table. Thank you for the opportunity to speak to you in support of Bill No. 20 080746 regarding divestment from Iran and Sudan. These are two issues of vital importance to the Jewish community, both in the Philadelphia area and throughout the nation, and we are grateful to 29 11/17/09 - FINANCE - BILLS 080746, etc. Councilman Kenney and City Council for taking the lead in this issue. I believe that Sarah passed out in packets, in addition to my rather limited testimony, there are letters of support from the Pennsylvania Jewish Coalition, with which I'm working to pass divestment legislation in the General Assembly, from Bradley Gordon, who is the Director of Policy and Government Affairs for AIPAC, and also from State Senator Michael Stack, who has introduced legislation on the Senate side pursuant to divestment from Iran and Sudan. Certainly the Jewish community's concern about Darfur are understandable. As the target of genocide during the Holocaust, the Jewish community has been at the forefront of the battle to bring awareness to the genocide taking place in Darfur. Since the conflict began, more than 300,000 people have been killed and close to 3 million people displaced from their 30 11/17/09 - FINANCE - BILLS 080746, etc. homes. Iran, which we're mostly concerned I think at this point, is the biggest threat to peace in the Middle East and to American interests both here and abroad. Iran's rhetoric directed against the United States and Israel grows on a seemingly daily basis. Threats including their nuclear weapons program, their documented record of failing to comply with UN sanctions or diplomatic agreements, and the recent capture of a ship loaded with weaponry and bound for Hezbollah militants clearly demonstrates the need for action. American companies and governments have a clear legal right and moral obligation to exercise discretion in how our money is being invested. Economic sanctions can be an effective tool against terrorist regimes. The divestment campaign in South Africa, to which Councilman Kenney referred and which Philadelphia participated, helps 31 11/17/09 - FINANCE - BILLS 080746, etc. bring about the end of apartheid. The stakes are even more serious in Darfur and Iran. With Darfur, we are seeing another genocide playing out on the world stage, and with Iran, the threat of nuclear devastation, destabilization of the Middle East and attacks against American troops and interests abroad and at home, these represent a clear and present danger. In the 2007 study conducted by the Center for Security Policy, over 75 percent of Americans said that they would rather invest in financial products that exclude companies doing business with state sponsors of terrorism, including Sudan and Iran. States such as Missouri, California and Florida have taken the lead, and Pennsylvania is poised to pass similar legislation. But taking a moral stand does not mean taking a financial hit. In fact, terror-free investing is good business. Pension funds in Missouri and Florida have both seen increases in 32 11/17/09 - FINANCE - BILLS 080746, etc. their earnings since divestment laws have been enacted. Economic sanctions are but one tool enforcing change, but it is an effective tool. Your support and passage of this crucial legislation sends a message that Philadelphia will not contribute to regimes that threaten the safety of our world. Thank you.

Thank you very much. Is there a list of the companies that are currently doing business in Iran?

I think it's about companies, and I do have that list and 19 I apologize. I will send that to you 20 this afternoon.

Thank you very much. We'll share it with the Committee.

Great. Thank you.

Thank you. 33 11/17/09 - FINANCE - BILLS 080746, etc. Are there any questions on behalf of these witness? (No response.)

Thank you very much for your testimony. We appreciate your coming.

Thank you.

Thank you.

Is there anyone else to testify on this bill? I'm sorry. Ms. Harrison.

Good afternoon, Councilmembers. My name is Kat Harrison. I'm the Executive Director of Darfur Alert Coalition. I would like to thank Councilman James Kenney and his Director of Legislative Affairs, Sarah Sachdev, for reaching out to us to testify today. Since 2004, DAC has been a partnership between Philadelphia's Sudanese community; in particular, the Darfurian community, and non-Sudanese Greater Philadelphia residents concerned about the disturbing reports of war 34 11/17/09 - FINANCE - BILLS 080746, etc. crimes and crimes against humanity that started coming out from Darfur in 2003. Then and now, DAC's mission has been to educate the community about the genocidal violence going on in Darfur -- and, yes, it is still going on today -- and to advocate for its end by engaging elected officials on city, state and national levels to execute policy designed to protect the people of Darfur, to strip their attackers of power and to disable and isolate the government of Sudan, which brings me why I'm here today. A resolution which guided Philadelphia's Pension Board to divest from companies proven to be funding the genocidal regime of Sudan was passed a few years ago. I am here today to testify to the effectiveness of such a resolution adopted by the Council and to support the case for Resolution 080746. I mentioned earlier that the genocide is still going on. Despite the lack of local media coverage of the 35 11/17/09 - FINANCE - BILLS 080746, etc. conflict, let this not be doubted. On June 28th, government airplanes attacked an area 70 miles northwest of El Fashir, the capital North Darfur. Rebel forces reported the death of ten civilians in the town of Hashaba. In late August, 28 internally displaced person camp leaders were arrested by the government of Sudan's commissions, who were sent to the camps to tell these IDPs to return to their villages. The camp leaders demanded safety of their return, reparations for lost property and disarmament of the Janjaweed forces that originally attacked them. For these demands, they were arrested, and their whereabouts are currently unknown. Finally, on September 28th, Korma, a region in North Darfur, was bombed by Antonov planes and attacked by Janjaweed soldiers. This attack mirrored those carried out in vast number from 2004 to 2007. Witnesses reported that over 30 women were raped and 40 people 36 11/17/09 - FINANCE - BILLS 080746, etc. were purported to be killed, hundreds more injured. Clearly, the genocide is still going on. I could continue for much longer, but I would like instead to just close by making two important points on this legislation. First, any money prevented from ending up in the pockets of government of Sudan would work to disable, isolate and strip power of the regime that has waged two wars against its own people. The total amount of money divested from the Pension Board -- or by the Pension Board's resolution was reported to be nearly $150 million. This is 100 million not spent on Antonov plane bombs, another 40 million not spent on semi-automatic rifles used by the Janjaweed, and, finally, 10 million in blood money not used to pay tribe members for carrying out the dirty work of the government. I do not say this to be dramatic. Instead, I say this to 37 11/17/09 - FINANCE - BILLS 080746, etc. demonstrate the power of Philadelphia's money to physically reduce the effects of crimes against humanity being committed halfway around the world. S. have adopted Sudan divestment 8 legislation. Several cities, including 9 Boston and San Francisco, have adopted 10 similar legislation to contribute to the 11 total of billions of dollars in 12 divestment that the government of Sudan 13 would otherwise have used to attack its 14 own people. I ask that the Council 15 recognize Philadelphia's part in this, 16 because some of all divestment efforts 17 combined is a serious amount of money 18 that the government of Sudan is not 19 receiving right now to wage a war on its 20 people.

Please decide to expand 21 Philadelphia's part in these efforts, as 22 right now is the time that the world 23 should be recommitting its support to the 24 region and people of Darfur. 25 I sincerely thank you for your 38 11/17/09 - FINANCE - BILLS 080746, etc. attention to this resolution and for your commitment to peace in the area. If you have any questions, I'm more than happy to answer them.

Thank you very much. Well, all of the actions taken by the states that you listed, have you seen any economic impact in Darfur?

I wouldn't want to guess on that, actually analyzing the numbers, but I'd be more than happy to investigate and send reports to you. More than happy to. Unfortunately, my President Dr. Ali Dinar, is abroad right now, out of the country, and I'm here in his place and he'd be much more informed on those statistics.

Thank you very much. Any other questions or comments from members of the Committee? (No response.)

Thank you 39 11/17/09 - FINANCE - BILLS 080746, etc. so much for your testimony. Is there anyone else here to testify on this bill? (No response.)

We will move on to Bill No. 090119. Is Katherine here and Keith Richardson. (Witnesses approached witness table.)

Good afternoon. COMMISSIONER RICHARDSON: Good afternoon, Councilwoman Tasco and members of the Finance Committee. My name is Keith Richardson. I'm the Revenue Commissioner. I am here to testify on Bill No. 090119, which proposes an exclusion from the definition of receipts for the business privilege tax, any receipts from certified sustainable businesses. As you know, the mission of the Department of Revenue is to collect 40 11/17/09 - FINANCE - BILLS 080746, etc. revenue due to the City and tax revenue due to the School District of Philadelphia and to do so promptly, courteously and in a manner that inspires public confidence in the integrity and fairness of the Department. The City of Philadelphia raises approximately 70 percent of the funds it needs to provide City services from taxes, making appropriate tax policy and tax administration essential to protecting and improving the lives of Philadelphia residents. In addition to fairly collecting revenues due to the City, the Department administers tax credits and other policies to promote economic and social goals, such as job creation, green roofs and community development. The Department is committed to playing a role in the ongoing sustainability and vitality of Philadelphia through its operations. We support the motivation behind this bill 25 and others to ensure that our tax code 41 11/17/09 - FINANCE - BILLS 080746, etc. encourages responsible, sustainable business activity in Philadelphia. The Administration is eager to work with Council to develop and implement initiatives for improving Philadelphia's sustainability and believe that Bill 090119, with modifications, can achieve this goal. As the initiative was originally proposed, the Department of Revenue would not have the capacity and tools necessary to evaluate that only firms eligible for the receipts exclusion are receiving this benefit. Similar exclusions restricted to narrowly defined groups of firms have proved challenging from a compliance standpoint, requiring review of individual tax returns and back-up documentation. As any of the roughly 80,000 business privilege tax filers could be eligible for a certified sustainable business receipts exclusion, ensuring appropriate compliance would be overwhelming. 42 11/17/09 - FINANCE - BILLS 080746, etc. By revising the bill to offer a tax credit rather than a receipts exclusion, the Department of Revenue's ability to ensure that the benefits go to truly sustainable firms is vastly improved. The Administration supports amendments to Bill 090119 that would offer a tax credit, capped at a total of $100,000 annually with a maximum credit per firm of $4,000 in place of receipts exclusion. The proposed change to a tax credit would promote more efficient administration and, thus, save the City tax dollars. The Administration supports an effective date of tax year 2012 to allow adequate time to develop regulations and operational procedures for the administration of the tax credit and an end year of 2017. The questions and ideas raised by Bill 090119 have helped focus discussion around the ways the City of Philadelphia can promote economic and sustainable activities and represents an 43 11/17/09 - FINANCE - BILLS 080746, etc. important step in securing the bright future of our community. With the suggested amendments, this incentive can further our efforts to become the greenest city in America. I look forward to a continued partnership with City Council to support our firms, families and physical environment today and in the future. Thank you, and I'm happy to answer any questions.

Thank you very much. Katherine.

Thank you. Good afternoon, Chairwoman Tasco and members of the Council Committee on Finance. I am Katherine Gajewski, Director of the Mayor's Office of Sustainability. I am here to testify on Bill No. 090119, with amendments, which proposes an exclusion from the definition of receipts for the business privilege tax, any receipts from certified sustainable businesses. 44 11/17/09 - FINANCE - BILLS 080746, etc. The Mayor's Office of Sustainability is responsible for the implementation of Greenworks Philadelphia, the City's comprehensive sustainability plan. Rising energy prices, climate change and an emerging green economy are resulting in global market changes. As the United States makes progress towards both domestic and international energy and climate commitments, I believe that we are at the beginning of what will be a large-scale transition towards a clean energy economy. Cities like Philadelphia will thrive in a world where fuel prices are high and carbon has a price tag. Our urban assets, our dense durable housing stock, transit infrastructure and amenities will take on increased value and position us for growth. With Greenworks as our guide, we will face these challenges and emerging opportunities and reposition Philadelphia as a city prepared to thrive 45 11/17/09 - FINANCE - BILLS 080746, etc. in the 21st century. Our aim is to grow as a green city, to embrace energy efficiency and social equity, not only as core values but as investment strategies for our community. The question we now grapple with is how we leverage our strengths, address barriers and develop a comprehensive economic development strategy. Philadelphia's identity as the greenest city in America will depend on our ability to grow and support a vibrant network of green companies, to attract successful new members of green industries, encourage local green start-ups and to foster increased awareness of local supply chains. As a first step in this process, the Mayor's Office of Sustainability is supporting a market analysis to help us to better understand where this growth potential lies. With grant funding from the Knight Foundation, we have recently contracted with the 46 11/17/09 - FINANCE - BILLS 080746, etc. Keystone Resource Center to conduct a green jobs framing study, which will flesh out in more detail for us the economic and job creation potential of aggressive city and regional efforts to promote and grow the green economy. The City will also spell out how strategic workforce and economic development initiatives can help realize the region's green jobs potential in alignment with the Greenworks' target of doubling the number of both low- and high-scale green jobs in Philadelphia by the year 2015. Our hope is that the findings will help to guide subsequent policy development and investment strategies. The study will be complete this winter and will be made publicly available. Several American cities throughout the country have already recognized the potential for green industry to spur both economic growth and a shift to a more sustainable urban environment. However, few have so far 47 11/17/09 - FINANCE - BILLS 080746, etc. S. cities to create and advertise a cohesive set of activities and incentives to lure sustainable industries. In order to position Philadelphia in this quickly emerging marketplace, we believe that we need to plan and act quickly and aggressively. The Mayor's Office of Sustainability is participating in a working group with PIDC, Commerce, and Planning and Economic development to develop a green business economic development plan. We have drafted a preliminary white paper and will be convening key stakeholders over the coming weeks to review and discuss this framework and to also identify potential partnerships and resources to support the development of a business attraction and development program. A critical component of this 48 11/17/09 - FINANCE - BILLS 080746, etc.

process will be to better understand how the City can help existing local green businesses to grow while encouraging new start-ups and attracting new companies, both large and small. From here, we will need to develop an effective incentive program. Such a program could include rent reductions in certain zones, programs for entrepreneurs, tax incentives, start-up funding grants and so on. We also need to identify the regulatory and standard government operating procedures that act as barriers to growth and then change them. The provisions in this bill, set to take effect in the year 2012, would become a component of this larger strategy and would represent an attempt to formally incent sustainable businesses, demonstrating and understanding that triple bottom line models provide enhanced benefits to the local economy and to communities. From our research, we think that we would be 49 11/17/09 - FINANCE - BILLS 080746, etc. one of the first cities to offer such a tax credit. Because of this, I believe that a tax credit, capped at a total of a hundred thousand dollars annually with a maximum credit per firm of 4,000, is a smart initial approach to take. Additionally, an annual reporting requirement and five-year sunset will allow us to learn from the program along the way and potentially adapt as necessary in order to enhance its effectiveness. Increasingly over the last ten or so years businesses have taken steps to incorporate sustainable practice into their operations. As demand for sustainable products and services has increased, taking on heightened value in the marketplace among our consumers, businesses in this sector have sought to clearly identify themselves while consumers at the same time seek greater confident in knowing what is real versus what is merely a branding scheme. 50 11/17/09 - FINANCE - BILLS 080746, etc. To meet this need for independent verification within a growing market, green business certification standards have been developed by both third-party organizations as well as by governmental entities across the country. Certification standards are meant to establish and identify a certain market brand, while related membership organizations provide marketing opportunities as well as a professional network meant to strengthen the business sector by providing advocacy, education, technical services and partnership opportunities. Here in Philadelphia, the Sustainability Business Network, an independent 501(c)(3), has grown to 500 members, 250 of which are within the City limits. Thus far, most of the existing certification standards have focused on the end product or only green environmental standards. Achieving sustainability, however, will require the 51 11/17/09 - FINANCE - BILLS 080746, etc. transformation of an industry to minimize environmental impacts while improving the local community. This legislation embraces this more comprehensive view of sustainability and will promote the growth of sustainable businesses by placing value on both the environmental and the social benefits provided by the companies. Working with a certification such as that developed by B Lab, based on transparent, social and environmental performance standards that were developed by an independent body, will aid the City of Philadelphia in realizing its goal of promoting sustainable business by providing a means of identifying and auditing businesses without the significant dedication of limited City resources. A tax credit to certified businesses will then be incorporated into a broader green business development strategy to transform the City of Philadelphia into a leader in sustainable 52 11/17/09 - FINANCE - BILLS 080746, etc. development. The Mayor's Office of Sustainability is eager to work with Council to develop and implement initiatives that support Greenworks and advance our sustainability goals. I believe that Bill No. 090119, with modifications, can achieve that goal.

I want to thank Councilman Kenney, Chair of the Committee on the Environment, for his leadership and understanding of what is needed to help Philadelphia create and nurture the local green economy. Thank you, and I'm happy to answer any questions.

Thank you. The Chair recognizes Councilman Greenlee.

Thank you, madam Chair. Good afternoon to you both. Just quickly to cut to the chase, is it your testimony that with amendments, you support this bill? Would that be a 53 11/17/09 - FINANCE - BILLS 080746, etc. correct statement? COMMISSIONER RICHARDSON: Yes.

For both of you?

Yes.

Because Ms. Gajewski, you say "with modifications." So you mean the amendments? Is that you what meant by "modifications" in your last paragraph there?

Yeah, with amendments.

So you both support the bill. I just want to make that clear. Okay. Thanks. Thank you.

Thank you. This is Panel No. 1. We'll go to Panel No. 2. Bart Houlaghan and Bill 22 Clark. (Witnesses approached witness table.)

Good 54 11/17/09 - FINANCE - BILLS 080746, etc. afternoon. Please identify yourself, please, for the record and begin your testimony.

My name is Bart Houlaghan. I am President and co-founder of B Lab. Councilwoman Tasco, Committee members, thank you very much for the opportunity to testify today in support of 090119. B Lab is a non-profit. We exist to support sustainable businesses and social enterprises and certify them as B corporations. B corporations are a new type of company that use the power of business to try to effect social and environmental change. These organizations agree to meet higher standards of social and environmental performance and also, importantly, meet higher legal standards for transparency and accountability. To become certified as a B corporation, companies must first take and pass the B Rating System. It is an 55 11/17/09 - FINANCE - BILLS 080746, etc. online assessment of everything that a company does. It's about 200 questions. It is totally comprehensive and it is transparent. It evaluates a company's impact on its employees, the environment, the community, consumers and its governance practices. In addition to that, certified B corporations also must change their corporate governing documents to include the interests of employees, community and the environment. Now, this fundamentally changes the focus of a certified B corporation. If the old rules of business were to maximize shareholder value, the rules under B corporations include not just maximizing shareholder value but also creating social value. We do have a rigorous assurance process where we provide survey reviews for all of our certified B corporations. We require documentation validating all of their responses, and we do audit 20 percent of all certified B corporations 56 11/17/09 - FINANCE - BILLS 080746, etc. every two-year certification period. We began certifying B corporations in 2007. We have certified 240 certified small businesses since then. These organizations are from 28 different states, 51 different industries. They preserve the environment. They rebuild the local community. They serve the underserved, and they create great jobs and economic opportunity. Having more B corporations in the City of Philadelphia will reduce waste and improve air quality. Seventy-two percent of B corporations use renewable energy and 61 percent have carpooling or public transit initiatives and incentives. They are 30 times more likely to reside in green buildings. B corporations invest in the local community. Seventy-four percent of B corporations are affiliated with local charities, and they are 30 times more likely to donate at least ten percent of 57 11/17/09 - FINANCE - BILLS 080746, etc. their profits to charity. Local businesses also are in and of the community. Nine out of ten are locally owned, and 82 percent have programs to volunteer in their local community. These organizations create great opportunities for women and minorities. B corps are three times more likely to be owned by minority or women. In addition, 69 percent of B corporations have suppliers in low-income communities. These are also great employers creating great jobs. Forty-four percent offer some form of employee ownership, and they are twice as likely as a community to offer health insurance as well as retirement plans. In summary, B corporations are fundamentally different than traditional businesses. They exist to do something more than just create private wealth. These are organizations trying to use their business as a vehicle for social 58 11/17/09 - FINANCE - BILLS 080746, etc. change. This legislation provides a modest tax incentive, but an important first step to attract new sustainable businesses to Philadelphia, to encourage existing businesses to improve their social and environmental performance to become certified and to continue the City's leadership position as the first city or state to pass an incentive recognizing certified sustainable businesses. Lastly, I want to ask the Committee to consider expanding the scope of this amendment beyond companies.

17 After you hear from our other B 18 corporations, I think you'll agree that 19 each of them are providing far more than 20 $4,000 of benefit for their city. The 21 City would be greatly improved and would 22 save money, frankly, if there were more 23 certified B corporations in Philadelphia. 24 Thank you so much for your time 25 and attention and I'm happy to answer any 59 11/17/09 - FINANCE - BILLS 080746, etc. questions that you might have.

Thank you very much. We'll go to the next witness before we ask questions. Would you identify yourself for the record.

Yes. Chairwoman Tasco and Councilmembers, thank you for this opportunity to address the committee. My name is William H. Clark, Jr. I am a partner in Drinker Biddle and Reath here in Philadelphia and I practice in the Corporate and Securities group in that firm. I have previously served as the Chair of the Business Law Section of the Pennsylvania Bar Association and also Chair of the Business Law Section of the Philadelphia Bar Association. I'm currently a member of the Council of the Business Law Section of the American Bar Association and, thus, I have been a leader of the professional organizations representing business lawyers in our city, in our state and in our nation, and 60 11/17/09 - FINANCE - BILLS 080746, etc. it's from that perspective as a business lawyer that I'm offering my testimony today. I am here in support of Councilman Kenney's amendment to Bill No. 7 090119 regarding certifiable sustainable business. As pro bono counsel to B Lab, I am here to testify to the strength and unique nature of the B corporation certification and of the scope and breadth of B Lab's activities. As you just heard in Mr. Houlaghan's testimony and you will hear from others as well, the B corporation certification requires that companies must first take and pass a transparent comprehensive assessment of their social environmental performance, and in addition, they must legally expand their corporate responsibilities to include consideration of stakeholder interests. Although the B Rating System is emerging as the "gold" standard for the assessment of corporate and social impact, what 61 11/17/09 - FINANCE - BILLS 080746, etc. really sets it apart are the legal requirements attached to it. Certified B corporations are required to amend their governing documents to reflect the interests of their employees, the community and the environment. This legal change expands the responsibilities of the company and imbeds in the DNA of the business an ongoing commitment to employees, community and the environment. Unlike traditional businesses, certified B corporations are no longer just required to maximize shareholder value. These companies must now consider the impact of all of their decisions on employees, the broader community and the environment. This expanded responsibility survives new management, new investors and even potentially new owners. The B corporation legal requirement is unique among current certifications and, combined with the 62 11/17/09 - FINANCE - BILLS 080746, etc. performance standards of the B Rating System, creates a truly rigorous and meaningful certification for sustainability businesses. Importantly, the scope of B Lab's work is not just limited to the Delaware Valley. I have been representing B Lab in its efforts to have legislation authorizing a new form of sustainable business enacted throughout the country. Legislation is currently being drafted in California, Colorado, Vermont, North Carolina and in our own Commonwealth of Pennsylvania. In addition to those five states, five additional states have also expressed similar interest in legislation for sustainable businesses. B Lab's efforts truly represent I believe the beginnings of a national movement. With the passage of this amendment, the City of Philadelphia has the opportunity to continue its leadership and be the first city in the 63 11/17/09 - FINANCE - BILLS 080746, etc. country to pass an incentive benefiting certified sustainable businesses. I sincerely hope the Committee will vote in fair of this amendment, and thank you for your time and consideration today.

Thank you very much for your testimony. Are there any questions from members of the panel? Councilman Kenney.

Thank you very much. I just wanted to state to Mr. Houlaghan, we would too also like to expand the number of businesses and the amount of money that's available, but considering the City's current fiscal situation and the cooperation that we receive from the man who collects the money, they've been very cooperative and helpful, and I think to get off the ground with something and to analyze it and hopefully by the time we're ready to analyze the results, we'll have a 64 11/17/09 - FINANCE - BILLS 080746, etc. different environment economically here, and both showing how good this can be and having more money may be a great opportunity at that point in time. But I do understand your desire to have more companies involved and more money, but I think at this point we're all where we can be. But thank you for your testimony and for your work.

Thank you, Councilman.

Thank you very much. The next panel, Tim McDonald, Brian Taussig-Lux, Ariel Hauptman. (Witnesses approached witness table.)

Good afternoon, Chairwoman Tasco, Committee members. Thank you for the opportunity to testify in support of Councilman Kenney's amendment to Bill 090119 regarding certified sustainable business. My name is Brian Taussig-Lux. I'm 65 11/17/09 - FINANCE - BILLS 080746, etc. Vice-President of Untours located in Media, Pennsylvania, and we're a certified B corporation. Untours is a 35-year-old travel company with 6 employees. We specialize in vacation 7 rental packages to Europe and North 8 America to allow people to live like 9 locals in over 20 destinations. But we 10 believe we are offering exceptional 11 cultural emerging opportunities for our clients and that our dedicated staff is the best in the industry. What makes Untours truly unique is what we do with our profits. For over years, Untours has 17 given nearly 100 percent of its after-tax profits to the Untours Foundation. The Untours Foundation provides low-interest loans to individuals and organizations in order to create jobs among disenfranchised populations and to build low-income housing. We look for projects that are innovative and replicable. To date, the Untours Foundation has made $5 66 11/17/09 - FINANCE - BILLS 080746, etc. million in loans, with many of the loan recipients residing here in Philadelphia and in Chester. Our founders, Norma and Hal Taussig, my aunt and uncle, believe in change, not charity, especially as this concept applies to funding small, inner City businesses that create lasting change and can be duplicated by others. Our guiding principle is providing a hand up, not a hand out. Norma and Hal live a simple life in their small home. They live on Social Security and savings from the modest wages Norma earned during her working years as a bookkeeper. More than a decade ago, Hal stopped drawing a salary from the company, and a few years ago, an IRS auditor came by, looked through our books and discovered that he wasn't taking a salary and decided to fine him $7,000 for attempting to evade taxes. They also required that he take an annual salary of $6,000 after that, 67 11/17/09 - FINANCE - BILLS 080746, etc. which he now signs right back over to the company. And, yes, Norma and Hal are the owners of an $8 million business. In recognition of Hal and Norma's efforts, Untours was recognized in 1999 by Paul Newman and John F. Kennedy, Jr. as the most generous business in America. We're proud to say that of the 235 B corporations across the country, Untours was the first to become certified, and I must add, this wasn't an easy test. The certification challenged us to look beyond the impact we create with the Foundation and to improve how we treat our employees, how we engage with our local community and how we impact the environment. On the B Rating System we scored 110 out of 200 points, and we donate almost all of our profits to charity. We joined this community in June of 2007 because we firmly believe 68 11/17/09 - FINANCE - BILLS 080746, etc. that business can be used to improve our communities and the environment. For Untours, the social benefit we created is through the symmetry of using profits from European vacations to lift others out of poverty. We are not unique in the community of B corporations. Of the 235 certified businesses, 74 percent have a public partnership with a local charity. We became a certified B corporation to be part of a growing community of like-minded companies that are using the power of business to effect change. We support the goal of creating a new sector of the economy in which companies like ours are recognized and valued for our emphasis on the triple bottom line - people, planet and profits. Philadelphia would benefit immensely by having more certified B corporations within its city limits. Councilman Kenney's amendment would create a direct incentive for other 69 11/17/09 - FINANCE - BILLS 080746, etc. community-oriented businesses to improve their social and environmental impact and become certified.

I hope you'll support this important legislation. Thank you.

Thank you very much. Sounds good. It's amazing what we learn when we're sitting in this seat here. Mr. Lux -- no. Brian.

I was Brian. I am Brian.

Oh, okay. McDonald, you're from Onion Flats. MR. McDONALD: Yes. Good afternoon, Chairwoman Tasco and Committee members. Thank you for the opportunity to testify in support of Councilman Kenney's amendment to Bill No. 090119. My name is Tim McDonald. I'm an architect and one of the founders of Onion Flats, a family-owned development/design/build collective centered in Kensington. I'm also a 70 11/17/09 - FINANCE - BILLS 080746, etc. member of the Sustainability Advisory Board working with the Mayor's Office of Sustainability and an active member of Northern Liberties Neighbors Association Zoning Committee. We are currently in the process of becoming a certified B corporation. Begun in 1997, Onion Flats is committed to designing and building the most sustainable communities in the country right here in Philadelphia. Our nine-unit Thin Flats project in Northern Liberties, completed one year ago, was awarded the first LEED Platinum duplexes in the country. Three other single-family homes completed the year before in Fishtown were Philadelphia's first LEED Gold homes. These projects far exceed City energy, water and resource codes. We have completed seven projects in Philadelphia, pretty small company, with many more on the boards and in construction. We employ approximately 71 11/17/09 - FINANCE - BILLS 080746, etc. 50 people between our five businesses - Onion Flats, the development company; Plumbob, the architectural firm; JIG, the construction company; GRASS, the green roof and solar systems company; and BLOX, our newest venture, which is a sustainable modular building company. Though our developments include a diverse mix of residential projects, we are perhaps best known for converting industrial sites in resource-challenged neighborhoods into sustainable residential developments. On the site of a former rag factory in Fishtown, we created Rag Flats, an 11-unit project completed in 2006, which manages its own storm water, generates its own electricity, and greatly reduces energy costs within a communal garden setting. These projects are developed in a collaborative public process, engaging the local community. We at Onion Flats believe that good, solid, commonsense urban 72 11/17/09 - FINANCE - BILLS 080746, etc. redevelopment means designing buildings in communities that manage their own resources and sustain themselves. Onion Flats' mission is directly in line with City Council's vision and the Greenworks Philadelphia plan, to make Philadelphia the most sustainable city in the country. In the process, we hope to empower generations of architects, developers, politicians and builders to see that the pressing question is no longer why would you think and build sustainably, but rather why wouldn't you. Sustainable development is often narrowly interpreted as green design, solar panels, green roofs, rainwater recycling, et cetera. And although our projects certainly include all these elements, sustainable development is a much broader, more holistic concept. Sustainable development includes not just what you build, but where you build, how you build 73 11/17/09 - FINANCE - BILLS 080746, etc. and who you impact. The B corporation certification appeals to us for a similar reason. It's not just about green. Certification represents a more holistic approach to business centered on creating social and environmental change. It doesn't focus exclusively on a particular product or practice. Instead, it's comprehensive, evaluating a company's impact on its employees, the community and the environment. When Onion Flats went through the B Rating System, the survey itself served as a roadmap or a guideline for how we could improve our social and environmental performance. We discovered new areas of focus for Onion Flats beyond our environmental expertise, areas like employee engagement, direct service and enhanced transparency.

We have been in the certification process now for several months and we're hoping to become a 74 11/17/09 - FINANCE - BILLS 080746, etc. member of the community by the end of the year. This legislation makes the decision to become a certified B corporation a little easier for Onion Flats. It's true that we will have to improve some of our practices to join the community, but being part of a broader effort to create a new paradigm for business meshes with our own vision for a new sustainable reality. I sincerely hope that the Committee will vote in favor of this important legislation and continue the City's ongoing support of sustainable businesses. Thank you for your time and attention.

Thank you very much for your testimony. Ms. Hauptman.

Chairwoman Tasco, Committee members, thank you for your time and attention this afternoon. My name is Ariel Hauptman. I have 75 11/17/09 - FINANCE - BILLS 080746, etc. traveled from Yonkers, New York to express my support for this legislation. I'm the Business Development Manager of Greyston Bakery and we are a certified B corporation. Greyston Bakery is a social enterprise founded in 1982. We use entrepreneurship to solve the problems of the inner city. We bake the brownies you find in Ben & Jerry's ice cream. We also have a line of exceptional gourmet brownies called Do-Goodie that we sell in grocery stores across the country. We truly believe that our brownies are the best tasting, highest quality brownies you've ever had.

You didn't bring any brownies?

Maybe I did.

We've had trans fat products.

Trans fat free, exactly. But our mission isn't to bake 76 11/17/09 - FINANCE - BILLS 080746, etc. exceptional brownies. Instead, we exist to support low-income individuals and families as they forge a path to self-sufficiency and community transformation. We maintain an open hiring policy at Greyston. Specifically, if we have a job opening, the next applicant is hired regardless of background or personal history. Our guiding principle of Greyston is relatively simple. We don't hire people to bake brownies. We bake brownies to hire people. We hire men and women who have little or no credentialed work experience, many of whom have come to Greyston with backgrounds that include homelessness, incarceration, substance abuse, welfare dependence, domestic violence and illiteracy. We currently have 120 employees at Greyston and each has story. Take Rodney. Rodney began working at Greyston Bakery in 1995 after spending years working on the streets. Before the bakery, Rodney's work 77 11/17/09 - FINANCE - BILLS 080746, etc. consisted of selling drugs and earning thousands of dollars every week. Starting at the bakery at an entry-level job, Rodney's income dropped to a few hundred dollars a month. His choice could be attributed to one thing - his family. Thirteen years later, Rodney serves as a positive role model for his children. During his tenure at Greyston Bakery, he has moved up through the ranks to become a Production Manager. Or take Delaney. At the age of 11, Delaney immigrated to New York from Haiti to be with her father. At 14, she ventured out on her own and found herself living in a shelter. There Delaney got pregnant and was forced to drop out of school. Looking to make a change in her life, Delaney, then 19, found Greyston Bakery and applied for a job. She didn't have a phone. She came to Greyston every day to say if there was a position available. Determination paid off and Delaney landed a job making brownies. 78 11/17/09 - FINANCE - BILLS 080746, etc. We at Greyston Bakery want to be a model for social enterprises, building a coalition with employees, the community and shareholders. Our factory sits on a redeveloped brownfield in an underdeveloped section of Yonkers. We properly compensate our employees with fair wage, health benefits and direct participation in the profitability of the company. We train and promote from within and mentor our employee whom we source from the local communities. All of our profits are donated to the Greyston Foundation, an innovative integrated set of non-profits and for-profit entities serving underserved populations in Southern West Chester County, New York. The Greyston Foundation supports childcare for the community, affordable housing for the homeless and low-income families and affordable healthcare for persons with HIV. The Foundation's programs reach 2,200 community members annually. 79 11/17/09 - FINANCE - BILLS 080746, etc. We joined the community of B corporations to be part of a movement bigger than ourselves. Our mission at Greyston is to serve as a model for a new way of doing business that we hope others will follow. The community of certified B corporations provide us both a larger platform and a louder voice to demonstrate that social entrepreneurship can work to rebuild the inner city. Whether B corporations are working to preserve the environment, rebuild local communities or alleviate poverty, we all share a common desire to effect change with our business. This certification is the best effort yet to pull together the diverse community of social enterprises and sustainable businesses and unify our efforts as a collective, harnessing the power of business for social change. Humbly, I submit to you that the world needs more Greyston Bakeries. Philadelphia needs more Greyston Bakers. 80 11/17/09 - FINANCE - BILLS 080746, etc. This legislation is one way to encourage businesses to accept the challenge of social entrepreneurship and to help rebuild our communities.

I promise you the proposed tax incentive will be repaid to the City many, many times over. Thank you for your time.

Thank you very much. We appreciate your coming to Philadelphia to present your testimony, and your story is quite interesting, and we thank you for your commitment to social justice.

Thank you.

Are there any questions on behalf -- we have an area in Philadelphia called the Ogontz Revitalization area. We can use a Greyston Bakery up there. So if you're interested, contact us.

I will check that out. Thank you very much for your time.

Thank you. 81 11/17/09 - FINANCE - BILLS 080746, etc. And I'm not kidding about that either. I do believe that Councilman Green would like to call back Commissioner Richardson for some questions. (Witness approached witness table.) COMMISSIONER RICHARDSON: Yes, sir.

Commissioner, do you know how many -- I think there are roughly B corporations 14 in the City already? 15 COMMISSIONER RICHARDSON: 16 Currently about ten, I think. 17

Ten? Okay. 18 So this would potentially allow 15 more 19 companies to come in or at least to get 20 certified in the City. COMMISSIONER RICHARDSON: Twenty-five, if that's what's going to be in the amendment.

Fifteen more than are already here. Those ten will be 82 11/17/09 - FINANCE - BILLS 080746, etc. the first ten to apply, I assume. COMMISSIONER RICHARDSON: Right. If they apply. I can't assume that.

So do you really think that this is enough money to encourage this kind of activity? COMMISSIONER RICHARDSON: Currently --

A hundred thousand dollars. COMMISSIONER RICHARDSON: What would say, currently, yes, in this economic times. Also, with the ten businesses that are currently in the City of Philadelphia, the average BPT liabilities is about $2,500.

Twenty-five hundred dollars. So they're not going to use it all. COMMISSIONER RICHARDSON: No. 23

So why limit the number of companies then? COMMISSIONER RICHARDSON: I 83 11/17/09 - FINANCE - BILLS 080746, etc. think right now again as we discussed --

In other words, if we're picking a dollar amount, why not allow it -- if it's 50 companies that use it up -- COMMISSIONER RICHARDSON: You're saying 50 companies at $2,000 a tax credit?

Yeah. I mean, if you have up to 4,000 but you're not going to use it, why limit it to 13 companies? 14 COMMISSIONER RICHARDSON: Well, 15 that's just on these ten on the average 16 now. So you got to remember, some are 17 over that. 18

Right. But 19 by limiting it to 25 companies, what 20 you're going to have is, we know those 21 ten on average will use up 25,000 when 22 they're eligible for 40. That means that 23 we're actually only going to use 85 of 24 this hundred thousand dollars, at the 25 most, assuming those ten apply. So we 84 11/17/09 - FINANCE - BILLS 080746, etc. already know that we're not going to use up the full hundred. COMMISSIONER RICHARDSON: Again, I can't state we are or we're not, because that's today's environment. Three years from now, it could be a totally different environment. I hope these businesses continue to grow and have more revenue. So I can't say today what it's going to be like in 2012.

Well, do you have any objection to removing a limitation up to the number that uses the full amount of the hundred thousand dollars? COMMISSIONER RICHARDSON: I'd have to get back to you, because, again, that's a lot of work on our staff to do that, analytical work and do the credit part of it. So I'd have to get back to you on that determination before I commit today.

Councilman Goode, point of information. 85 11/17/09 - FINANCE - BILLS 080746, etc.

Thank you, Madam Chair. Commissioner, these businesses who are eligible under this tax credit in 2012, they're not restricted from taking advantage of other business tax credits, are they? COMMISSIONER RICHARDSON: No, sir, not right now, they're not.

So they're eligible for the Job Creation Tax Credit? COMMISSIONER RICHARDSON: PREP credit as well, yes.

And the community development corporation tax credit? COMMISSIONER RICHARDSON: They would not be for the CDC tax credit, because they're not CDCs.

No. They can donate money to CDCs and receive a tax credit. COMMISSIONER RICHARDSON: Sure.

Okay. Thank 86 11/17/09 - FINANCE - BILLS 080746, etc. you.

I'm sorry. I just wanted clarification on those issues. If Councilman Kenney is happy with this, I am as well. It seems to me if we're going to put up a hundred thousand, we ought to make all of it available. Thank you.

Madam Chair, I do appreciate the Councilmember raising that issue, and that was something we had bantered about. We changed it a couple times, the number of firms, the amount of money. And, again, my hope -- and I think all of our hope -- is that the economy in the country turns around, the economy of the city turns around and we will have more resources. As I told Mr. Houlaghan, I wish we did have more. And I understand Councilman Green's issue relative to the maximization of the use of the hundred relative to as many firms as possible, 87 11/17/09 - FINANCE - BILLS 080746, etc. but at this point, I'd like to keep it as it is and then maybe revisit it in a little while and see whether or not we can throw some more money into this pot. I mean, again, I think the whole concept of this thing, as we've heard from a number of witnesses, is that a company can do well financially but also can do good, and it's a different kind of concept. The other issue we raised was with larger firms in the City that have a more difficult time convincing their stakeholders and their boards to change their bylaws and change their governance structure to create this and we thought that maybe smaller businesses or medium-sized businesses would be more flexible in that regard. I just would like to go through and see how it goes, and I do appreciate in this environment the Administration's cooperation with the number. I wish it could be more also, but we have libraries coming up to fund soon, so I think we 88 11/17/09 - FINANCE - BILLS 080746, etc. ought to keep our powder dry. But thank you for your input.

Thank you. Any further questions? (No response.)

Thank you very much for your -- COMMISSIONER RICHARDSON: You're welcome.

-- testimony. We'd like to call the City attorney, Mr. Rosman, to come forward. I think we have some questions relative to Bill, No. 080746 regarding this bill in relationship to federal regulations or restrictions, federal law. (Witness approached witness table.)

Madam Chair, if I can just kind of restate?

Sure.

I recognize the federal program on sanctions, and it 89 11/17/09 - FINANCE - BILLS 080746, etc. was my view -- and, again, it's an untrained legal view -- that as long as we weren't trying to reverse or exceed what the federal government was doing, that preemption was not an issue. Because in some ways if preemption is an issue on something that we're trying to piggyback or go along with the federal government in trying to put more pressure on this -- economic pressure on this issue, abiding by a preemption standard would preclude us from being involved at all, that the federal government could be the only entity that provides sanctions in this regard, when it doesn't restrict it in Sudan, it didn't restrict it in the MacBride Principles in Northern Ireland, it didn't restrict it in Sullivan Principles in South Africa. I don't understand the nuance as to why it's our involvement or any other local government or state government involvement in this issue is preempted by a federal law that does the same thing we're asking our own 90 11/17/09 - FINANCE - BILLS 080746, etc. Procurement and City Treasurer to do.

Councilman, Madam Chair and members of the Committee, I am Lewis Rosman. I'm a Senior Attorney at the Philadelphia Law Department. Councilman, with respect to -- the legal advice is that the local legislation with respect to Iran would be preempted. The difference between this and MacBride Principles and the South Africa sanctions is that since the time of adoption of those sanctions policies, the Supreme Court ruled in 2000 in a case called Crosby very broadly that local sanctions regimes with respect to a country that the United States has its own comprehensive sanctions regime in place, that those local laws are preempted. It doesn't -- in some respects, the local law can't precisely mirror the federal law because what is sanctioned -- the company may be sanctioned for the same conduct, the same type of business in Iran or Sudan, but 91 11/17/09 - FINANCE - BILLS 080746, etc. the penalty is different in that the federal government imposes federal sanctions, criminal sanctions often, whereas we impose the sanction of you can't have a contract with the City of Philadelphia or you may not --with the banking, it's a little bit more complex. If a bank provides banking services to a company that does business in Iran or Sudan, the bill provides that we cannot have them as our depository. That sanction of not letting a bank be our depository is necessarily different than the federal sanction. The Sudan case is --

Let me stop you there a minute. So what you're saying is in practice or in theory that this bill in practice would potentially have a court tell us that we need to accept -- that we need to keep City money in a depository that does business with Iran because the federal government preempts us? 92 11/17/09 - FINANCE - BILLS 080746, etc.

I believe a court would almost certainly say that.

I mean, isn't it antithetical to the effort? I mean, I understand you're interpreting the Supreme Court decision and it's not your personal view, but it seems ridiculous that potentially a court could say to us, Yeah, you got to keep your money in that bank even though they're Iran's favorite bank.

I think it's an extraordinarily complex question about the policy decisions that the Supreme Court weighed in evaluating whether the federal government should have sole control of determining foreign policy through the United States of America such that it would preclude, when the federal government acts in a certain area, it would preclude local governments from seeking to influence foreign policy in that way.

Do you 93 11/17/09 - FINANCE - BILLS 080746, etc. think that that's --

And I --

Do you think that question up is in the air yet or do you think that's settled?

I think the Crosby case is an extremely broad statement that there might be nuances to it in certain cases, but it's a pretty broad statement preempting local government. And let me add that, you know -- and you mentioned this, but by all means, I'm not making any statement about what sanctions policies should be with respect to Sudan or Iran. Obviously I'm, like all of you, in support of our federal government's policies with respect to those particular countries. This is simply an analysis of what I think the courts would say about the bill in connection with Iran and Sudan. And in Sudan, it's a different situation, because the federal government specifically adopted a law that specifically provides that local 94 11/17/09 - FINANCE - BILLS 080746, etc. governments may have their own sanctions programs with respect to Sudan if they follow certain contours, that the sanctions policy has to apply with respect to companies that are engaged in certain types of business in Sudan, oil business and military equipment business. And the amendments that have been drafted to the bill are crafted to mirror precisely what is permitted under federal law. Senator Barack Obama had introduced legislation with respect to Iran in Congress seeking a similar type of exemption from the preemption principle with respect to local governments having sanctions programs with respect to Iran. That has not passed Congress. You know, it's extraordinarily complex how the federal government determines how it wants to manage foreign affairs with these countries.

But I also 95 11/17/09 - FINANCE - BILLS 080746, etc. believe that this bill is not an effort -- and, again, this is not a matter for court decision, but the purpose of this bill is not to influence American foreign policy. It's to set our own standard policies for how we spend and deposit our money. So this is not in effort to direct or guide or shape American foreign policy. This is our city's home rule's right to determine where we place our money in purchasing and in our deposits in banks. And the question I have for you is, the testimony of the City Treasurer and the Procurement Commissioner has been that within the guidelines of this bill, as long as they're following the law as directed by the Law Department, they will enforce this ordinance, and is that as you understand it?

I wasn't here for the earlier testimony, but okay. I accept that.

So there's 96 11/17/09 - FINANCE - BILLS 080746, etc. no need to remove it in the event -- there's no need to remove the Iranian language -- if you advised them in a certain particular case that they're preempted by federal law and they follow your advice, there's no need to have an outside -- my point is, I want to keep it in the legislation, because in the event that that changes or in the event that there's some way the Law Department can direct them in a legal way to act, I want to keep it there.

And I think if the bill were adopted and Congress were to create a carveout for here is how you can have a sanctions policy, a local government can have a sanctions policy with respect to Iran, we would want to try and calibrate the language in the code to what the federal government allows.

Right.

But it could become unpreempted if Congress were to 97 11/17/09 - FINANCE - BILLS 080746, etc. pass --

And we would be ahead of the curve legislatively if that happened?

That's right.

Thank you.

Councilman Green.

Thank you. I was troubled by the testimony that Councilman Kenney just relayed, that the Treasurer and Procurement Commissioner, when they said that basically they were not going to enforce any portion of this law if the Law Department deemed it to be in violation of federal law, and just wanted you to clarify that, because it is my personal belief that the City has to enforce -- the executive has to enforce a law validly passed by City Council pursuant to the provisions of the Charter unless and until it proactively goes to court and declares that law to be and a court 98 11/17/09 - FINANCE - BILLS 080746, etc. declares the law to be invalid. It cannot make its own decision about whether or not to enforce laws validly passed through the mechanisms of the Charter. So I assume you'd be giving advice after you've gone to court and had the law declared invalid?

No. We give advice based on how we read the law, and the law is many things. The law is City Council ordinances. It's state law. It's federal law. If we were asked by the Treasurer or the Procurement Commissioner, Here is a law that, particularly since we all have this public discussion, that we understand there to be some legal issues with, are we permitted under the law to follow the restrictions of this bill, we would provide legal advice about what we understand the law collectively to be, what the ordinance says and how we 99 11/17/09 - FINANCE - BILLS 080746, etc. analyze that ordinance among all laws. So our advice is based on what we think the law is with respect to a particular issue.

Okay. I just wanted that for the record. So with respect to this particular law, I thought Councilman Kenney made an excellent point, in that we're not attempting to influence foreign policy. We're setting criteria for who we do business with. Why don't we have the ability to do that?

I don't believe a court would look at it that way. I believe a court would say when you tell banks if you want to be a City depository, keep your hands clean of doing business with a company that is in Iran, do not lend to a company that does business in Iran, the court would look at that as our seeking to put pressure on companies that do business in Iran, and the purpose of that, of course, is to 100 11/17/09 - FINANCE - BILLS 080746, etc. create pressure through lots of laws like this or lots of sanctions regimes in many countries on the base country to say we're going to pressure companies not to do business with you because we don't like your policies.

As a practical matter, if we pass this ordinance and we in fact put that policy into effect, who will bring an action against the City and what would our penalties be?

Who will bring an action for -- if we are in violation of the federal law?

Yeah. What is the penalty for actually just doing in?

I don't think --

Whether it's in an ordinance or not.

I don't think there's any penalty for passing the law. With respect to Sudan -- 101 11/17/09 - FINANCE - BILLS 080746, etc.

With respect to enforcing the law as written, what is the penalty?

If we were to -- I don't know what the penalty would be. Someone could potentially bring an action to say you cannot preclude our -- if we were to be --

So as a practical matter, a bank who does business with Iran will sue to be our depository because we have restricted them? You think someone is going --

I think it's very unlikely, because I think it's very unlikely that our depositories lend money to companies that do business in Iran. So I think it's unlikely that the issue would be brought to a head. I think it's unlikely that we give out contracts to companies that do business in Iran. It's possible, but I think the confluence of the two are unlikely.

So we could 102 11/17/09 - FINANCE - BILLS 080746, etc. take the position that this is not intended to influence foreign policy, which Councilman Kenney has said it is not, and then let someone sue us.

I just wanted to add one point on City depositories. I did speak to a few of them, not all, but a few, and they said they were already not doing business with Iran because of the federal sanctions program. So that several banks did not see any problem with this legislation. That's not every bank, but that's what I consistently heard from the banks I spoke with. So I just wanted to share that.

If the federal government has sanctions on companies who do business with Iran, is that what the feds have, their sanctions preclude bank from doing business with Iran?

I think there are sanctions -- I am by no means an expert on the federal sanctions regime, but I 103 11/17/09 - FINANCE - BILLS 080746, etc. think generally it is prohibitions on U.S. companies doing business in Iran and whether -- I don't know whether that prohibits banks from -- I doubt that that prohibits banks from lending to companies that do business in Iran, but I don't really know. This bill would prohibit us from using banks that lend money to companies that do business in Iran. It's a little bit more removed than the contracting restriction.

Well, maybe it's not, because we don't know what the federal law is. Maybe it's not in conflict with the federal law.

Even if they are not -- I don't believe that the local law has to be in conflict with the federal sanctions regime to be preempted. I think it's much more broad than that, the preemption principles. I think it is meant to preclude local government conduct that has the effect of potentially influencing foreign affairs. 104 11/17/09 - FINANCE - BILLS 080746, etc.

But someone has to bring an action to claim that this particular ordinance is in conflict with the federal law. I mean, no court is going to unilaterally issue an order. So someone is going to have to take an affirmative action, expose themselves, make a public filing in a federal court and say we're challenging this law.

In order for the issue to be joined in court, that's right.

So, I mean, until that happens, we can basically set our own financial policy and our own banking policy, until a court tells us otherwise, even with your advice -- and we do appreciate your advice, and I think it's appropriate that you give it, but until someone takes an affirmative action, sues us in court and a judge says don't do it, I don't see why we shouldn't move ahead.

Well, I wouldn't 105 11/17/09 - FINANCE - BILLS 080746, etc. presume to say how Council should act as the law-making body. I was asked about what our advice would be to the administrative and executive branch with respect to implementation of the law. We would not hold back on our advice that we think we're preempted from acting in this way simply because it's unlikely that the case will come to a head. We still provide our legal advice that in our view we cannot implement such a policy, even though it might be very unlikely that anyone would challenge us and take us to court.

And advice is advice. It's not --

That's right.

It's not required to be followed.

Well, under the Charter, if -- that's not entirely true. Under the Charter, if a government agency, if a city agency asks us for advice and we give it, they are required 106 11/17/09 - FINANCE - BILLS 080746, etc. to follow it.

What if they don't ask? It's always better to ask for forgiveness than permission, don't you think?

No, I don't agree, Councilman.

I'm only being -- I'm being flip. Tongue and cheek. Relax.

Because Ms. Rhynhart would be bound by the recommendations of the Law Department, being a part of that Administration.

That's right. And we do run into the problem occasionally, Councilman, of sometimes people don't ask, and we have to deal with that. But, generally speaking, for example, we provide advice to the Mayor when a bill 22 is presented for his signature of what we think, generally speaking.

I guess we'll see what he thinks once he gets the 107 11/17/09 - FINANCE - BILLS 080746, etc. advice.

Right.

Councilman Greenlee.

Thank you, Madam Chair. I guess I'm kind of repeating what was just said, but I guess it goes back to Councilman Green's point, because I think the Treasurer said they would act on the advice of the Law Department, right? Did you not say that earlier, Ms. Rhynhart?

That's right.

So I guess what you're basically saying is that what Mr. Rosman is saying is that you would not -- you do not feel you could enforce this if the Law Department advised against it; is that right? Even if nobody challenged it in court, as Councilman Kenney was talking about earlier; am I right?

I mean, I think 108 11/17/09 - FINANCE - BILLS 080746, etc. we would have to discuss that.

I'm sorry?

I think I would want to discuss that others before making a final decision on it, but generally, I think we should take the advice of the Law Department.

Okay.

But, again, the banks that I did speak with did say that they're already complying in respect to Iran to this bill.

No. I understand that. Okay. All right. I don't want to belabor it. Thanks.

Thank you very much. Any other questions? Councilman Goode.

Thank you, Madam Chair. Mr. Rosman, your testimony is 109 11/17/09 - FINANCE - BILLS 080746, etc. that there are no federal preemption issues with regard to our approval of the ordinance. There are just preemption issues with regard to the implementation of the ordinance?

If you were to ask me do I think the law that you are about to approve is lawful --

No. That's not the question I asked. The question I asked was, was that your testimony earlier?

No, I don't think it was.

Okay. Thank you.

Okay. Any other questions? (No response.)

Thank you. Anyone else to testify on Bill 090119? (No response.)

Okay. That concludes our public hearing. We 110 11/17/09 - FINANCE - BILLS 080746, etc. will now go into our public meeting. The Chair calls on Councilman Bill Green to move Bill 090687.

Madam Chair, I move that Bill 090687 and 090 --

Do one at a time.

Madam Chair, I move, one at a time, that Bill No. 11 090687 be reported from this committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Bill 090687 be reported out of committee with a favorable recommendation. All in favor will say aye. (Aye.)

Is there any opposition? (No response.)

There being none, the bill is carried. The Chair recognizes Councilman 111 11/17/09 - FINANCE - BILLS 080746, etc. Green to move Bill 090688.

Madam Chair, I move that Bill No. 090688 be reported from this committee with a favorable recommendation. (Duly seconded.)

It has been moved and seconded that Bill 090688 be reported out of committee with a favorable recommendation. All in favor will say aye. (Aye.)

Is there any opposition? (No response.)

There being none, the motion is carried. I will announce that Bill 20 090690 will be held. The Chair recognizes Councilman DiCicco to offer the amendment to Bill 23 080746. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment 112 11/17/09 - FINANCE - BILLS 080746, etc. to Bill No. 080746 be approved. (Duly seconded.)

It's been moved and seconded that the amendment to Bill 080746 be approved. All in favor will say aye. (Aye.)

Is there any opposition? (No response.)

There being none, the motion is carried. The Chair recognizes Councilman DiCicco to move 080746 as amended. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill 080746, as amended, be reported out of this committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next session of City Council. (Duly seconded.)

It has been moved that Bill 080746, as amended, 113 11/17/09 - FINANCE - BILLS 080746, etc. be voted out of committee with a favorable recommendation and that the rules of Council be suspended so that this bill can be heard at Council's next session. All in favor will say aye. (Aye.)

Those opposed? (No response.)

There being no opposition, the motion is carried. The Chair recognizes Councilman DiCicco for an amendment for Bill 090119. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that the amendment to Bill No. 090119 be approved. (Duly seconded.)

It has been moved that Bill 090119 be -- the amendment be accepted. All in favor? (Aye.) 114 11/17/09 - FINANCE - BILLS 080746, etc.

Is there any opposition? (No response.)

There being none, the amendment is approved. The Chair recognizes Councilman DiCicco to report Bill No. 090119 out of committee, as amended. COUNCILMAN DiCICCO: Thank you, Madam Chair. I move that Bill No. 12 090119, as amended, be reported out of this committee with a favorable recommendation and that the rules of Council be suspended. (Duly seconded.)

It has been moved that Bill 090119, as amended, be reported out of committee with a favorable recommendation and that the rules of Council be suspended so this bill can be heard at Council's next session. All in favor will say aye. (Aye.) 115 11/17/09 - FINANCE - BILLS 080746, etc.

Is there any opposition? (No response.)

There being none, this bill is passed. We thank you all for your time and your attendance, and thank you, Councilman Kenney and Councilman Green. (Committee on Finance concluded at 3:00 p.m.) - - - 116 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on November 17, 2009, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)