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State unexpectedly revokes business waivers several weeks after granting them

The Wolf Administration is under scrutiny after dozens of waivers allowing businesses to reopen during the pandemic were suddenly rescinded several weeks later.

HARRISBURG, Pa. — Controversy continues to consume Governor Tom Wolf’s business waiver process. Dozens of business owners received a waiver to reopen their company, only to have that waiver later rescinded by the Pennsylvania Department of Community and Economic Development, without explanation.

Micah Durling, owner of Vivid Home Real Estate Photography in New Holland, received a waiver from the state on March 25.

“When the economy stopped dead in its tracks, many homeowners were left with two mortgages,” said Durling.

Homeowners couldn’t sell because agents couldn’t show, due to Governor Wolf’s stay-at-home order. Durling’s real estate photography business gave buyers a glimpse into homes as if they’re there. He and his wife adapted to a new routine with extra safety precautions.

“We were wearing gloves, wearing masks,” explained Durling. “We were doing all of that, cleaning our equipment after every job.”

On May 11, six weeks after receiving that waiver, everything abruptly changed.

“One o’clock in the afternoon on Monday, without warning, boom,” Durling described. “Just an email, very unceremonious, just said ‘We reviewed your application and determined that you are not an essential business.’”

The Pennsylvania Department of Community and Economic Development (DCED) has rescinded 69 waivers. DCED officials said the revocations are part of their “ongoing quality control efforts” to ensure nothing is issued in error.

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Those efforts began at the beginning of the exemption review process to help ensure consistency for both approvals and denials, in a targeted quality assurance effort, a department spokesperson said.

Many business owners feel the timing is suspicious. Dawn Sherman received a waiver for her notary business, Sherman Messenger Service in Carlisle, on March 23. It was rescinded on May 7, the night before Governor Tom Wolf was pressured to release a list of businesses that had been granted waivers to reopen.

RELATED: State auditor general to audit how Pennsylvania managed waiver requests for Gov. Wolf's shutdown order

“I actually thought that the Governor is just trying to cover his tracks,” Sherman expressed. “It seemed unusual that I would receive that the day before he was to turn over the list of businesses that were issued the waiver.”

Governor Wolf publicly released that list shortly after Republican lawmakers threatened him with a subpoena. However, a person with direct knowledge of the waiver process tells FOX43 the first waivers to be revoked happened in late March.

RELATED: Wolf Administration releases information regarding approved business exemptions

Some lawmakers said they were notified early on that a few waivers had been rescinded. They said they were mostly concerning residential construction.

“But since that time, there’s really been nothing until we subpoenaed the Governor and the DCED to get this information. Then all of a sudden, it became very active again,” said Senator John DiSanto, who represents Dauphin and Perry counties.  

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As of May 13, the DCED issued 6,124 exemptions. An exemption does not mean a business as a whole is "life sustaining” and is only allowed to operate life-sustaining activities as listed on their application, DCED officials said.

Casey Smith, a department spokesperson, said changes have been made throughout the process.

“As the Industry Operations Guidance and FAQs have evolved, the quality control process enabled us to provide updated determinations based on new guidance,” she said. “Some businesses have had their exemptions revoked, and some received exemptions, as part of this quality control effort.”

RELATED: Real estate industry legislation to be labeled as essential, resume home buying and selling during COVID-19 crisis

You can find those guidelines and FAQs regarding the Governor’s waiver process, here.

Durling said the unexpected revocation forced him to cancel scheduled appointments. The state’s “quality control” has already cost him two weeks worth of business—and it’s sure to cost him a lot more.

“I don’t understand what’s so difficult about transparency. Why is it so complicated for anyone, anyone in office, to say, 'You know what? We kind of made a mistake here and here’s what we’re going to do to re-correct that and make good on it or make it right,'" demanded Durling.

If you or someone you know has had their business waiver rescinded from the state, we want to hear from you. Send us an email at FOX43Reveals@FOX43.com.

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