The General Assembly took up several proposals last week that would have significant implications for Pennsylvania employers. Lawmakers advanced bills imposing steep penalties on construction companies, mandating a state-run retirement program for private businesses, and updating key tax credit programs aimed at attracting investments in the renewable energy sector.
There was also movement on workforce-related education reforms, local energy policy protections, and a step back in the effort to legalize recreational marijuana in the Commonwealth.
Neither chamber is scheduled to return to Harrisburg until next month. Here is a recap of last week’s legislative action most relevant to employers:
Severe Penalties on Construction Companies (H.B. 721; Donahue)
The Pennsylvania House of Representatives voted 113-90 to pass House Bill 721 last Tuesday.
This legislation proposes several amendments to the Construction Workplace Misclassification Act, including adding severe penalties against employers for violations of this notoriously vague and complicated law, the threat of permanent debarment from commonwealth contracting opportunities, and new private rights of action and opportunities to sue construction companies.
We opposed this legislation (CLICK HERE for our memo), which now goes to the Senate.
Keystone Saves Retirement Accounts (H.B. 1263; Mullins)
The House of Representatives voted along party lines to pass House Bill 1263 last Tuesday.
This legislation would establish the Keystone Saves Program Retirement Fund, a state-run auto-enroll IRA program requiring businesses with five or more full-time and/or part-time employees, who do not currently offer their own retirement savings plan, to participate in and administer a government-run program for their employees.
While the PA Chamber strongly supports retirement savings plans and efforts to encourage Pennsylvanians to save, we have a number of concerns with this legislation.
Employers will be required to prove whether they do or do not provide retirement savings programs, register all new employees, and provide employees’ personal information, such as social security numbers, to the state. Businesses must manage varying contribution percentages, workers’ anniversaries, tax filings; and could potentially be charged additional fees from payroll companies to process the various deductions.
Based on these concerns, we opposed this legislation for now, which now goes to the Senate.
EDGE 2.0 Tax Credits (H.B. 500; Inglis)
The House of Representatives voted 108-95 to pass House Bill 500 last Wednesday.
This legislation makes several key revisions to the existing Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credit program, which provided a range of tax credit opportunities to encourage economic development but has been underutilized since its inception in 2022.
These revisions include a new Reliable Energy Investment tax credit designed to encourage the development of baseload power and allow existing facilities to invest in upgrades; updates to the Dairy Production tax credit; a revised Regional Clean Hydrogen tax credit; several changes to the existing Semiconductor Manufacturing and Biomedical Manufacturing and Research tax credits; and the creation of a new Sustainable Aviation Fuel tax credit.
We support energy investment in Pennsylvania (CLICK HERE for our memo), but were disappointed when an amendment that would have ensured that all energy sources could compete on a level playing field (A680; O’Neal) was voted down along party lines. The bill now moves to the Senate.
Amending the Freedom to Breastfeed Act (H.B. 526; O’Mara)
The House Judiciary Committee voted along party lines to advance House Bill 526 last Wednesday.
This legislation amends the Freedom to Breastfeed Act in several ways, including clarifying that expressing milk is a protected activity and providing for a private right of action.
It appears the purpose of this legislation is to confirm a reasonable clarification of PA’s Freedom to Breastfeed Act related to expressing milk. However, the bill’s language includes vague terms that could lead to different interpretations and complicate compliance, and we are further concerned that it provides for a new private right of action.
For these reasons, we urged the committee to hold off on considering this legislation and instead work with stakeholders on clarifying language to address these concerns (CLICK HERE for our memo). The bill now goes to the full House.
Second Career Certifications (H.B. 1404; Curry)
The House Education Committee unanimously voted to advance House Bill 1404 last Monday.
This legislation would increase the length of time that future teachers and Career and Technical Education (CTE) educators can utilize an intern certification from three to five years.
CTE centers continue to express challenges in recruiting new educators despite record student demand. Extending the intern certification period allows aspiring educators the flexibility to balance work, school, and other personal commitments. This flexibility is particularly crucial for individuals with other professional responsibilities, such as individuals looking to make a career change into education. In return, CTE centers can open more classroom slots for students who will graduate with the skills necessary to fill gaps in Pennsylvania’s workforce.
We supported this legislation (CLICK HERE for our memo), which now goes to the full House.
Counting Veterans’ Service Experience Toward CTE Certification (H.B. 1405; Munroe)
The House Education Committee also voted unanimously to advance House Bill 1405 last week.
This legislation would allow veterans’ service experience in a specific occupational area to count toward the credits necessary for a CTE Instructional 1 certification.
The proposal, similar to the above H.B. 1404, would help address challenges in recruiting educators by recognizing relevant service experience in certifying Career and Technical Education (CTE) instructors.
We supported this legislation (CLICK HERE for our memo), which now goes to the full House.
Energy Choice (S.B. 311; Yaw)
The Senate Local Government Committee voted 8-3 to advance Senate Bill 311 last Tuesday.
This legislation prohibits municipalities from adopting policies that restrict or prohibit a utility service based on the type of energy source.
A stable energy framework and consistent policies that provide businesses with certainty are key to attracting economic investment in Pennsylvania. Ensuring reliable access to all types of utilities, regardless of their energy source, supports this goal while also meeting the diverse needs of consumers across the Commonwealth.
We supported this legislation (CLICK HERE for our memo), which now goes to the full Senate.
Recreational Marijuana Legalization (H.B. 1200; Krajewski)
The Senate Law & Justice Committee rejected House Bill 1200 by a vote of 7-3 last Tuesday.
This legislation would legalize, regulate, and tax adult-use recreational marijuana in Pennsylvania and allow it to be sold in state-run stores.
The PA Chamber has expressed strong concerns with lawmakers considering the legalization of recreational marijuana and expanding marijuana use in Pennsylvania, at least until workplace safety concerns with the medical program are addressed.
We opposed this legislation two weeks ago when it came up for a vote in the House (CLICK HERE for our memo). With its failure to advance through the Senate Law & Justice Committee, H.B. 1200 is stalled; however, lawmakers continue to discuss the bill.