Progress remains stalled on state budget negotiations as the Senate returned to Harrisburg last week to pass another version of the spending plan (more on that below), which the governor and House lawmakers summarily dismissed. However, the Senate also passed other proposals last week that would positively impact Pennsylvania employers regarding permitting, energy, workforce, and more.
Here is a recap of last week’s legislative action that’s most relevant to employers:
Budget Update
Pennsylvania’s budget stalemate is now entering its fourth month with no agreement between Gov. Josh Shapiro and legislative leaders. The Senate last week advanced a new, $47.9 billion spending plan — about $2.5 billion less than the House-approved version and roughly $3.5 billion below the governor’s proposal.
Republicans argue the state must rein in spending amid slowing revenues, while Democrats continue to advocate for higher spending levels for areas including education and health care. With little sign of progress, Pennsylvania remains the only state in the nation without a budget.
Withdrawing from RGGI (S.B. 1068)
The Senate voted 33-17 to pass Senate Bill 1068 last Wednesday.
This legislation would withdraw Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI), a multistate carbon cap-and-trade program that would impose a new tax on energy.
Withdrawing from the RGGI would reduce undue financial burdens on businesses in Pennsylvania, promote a more competitive business environment, and foster economic growth. The bill would eliminate costly carbon taxes that have disproportionately impacted energy-intensive industries, such as manufacturing and power generation. This action would not only lower operational costs for businesses but also encourage investment in new energy generation projects in the state.
We supported this legislation (CLICK HERE for our memo), which now goes over to the House.
Recovery-to-Work Program (S.B. 69)
The Senate Labor and Industry Committee voted 7-4 to advance Senate Bill 69 last Wednesday.
This legislation would create a pilot program, spearheaded by the Departments of Labor & Industry; Health; Community and Economic Development; Drug and Alcohol Programs; and the Pennsylvania Commission on Crime and Delinquency, to connect individuals in drug recovery with occupations through local workforce development boards.
The heroin and opioid epidemic is impacting every region of the Commonwealth. A meaningful step in the long-term recovery process is helping individuals secure gainful employment. This legislation aims to break the cycle of addiction and address the state’s workforce needs by helping individuals with a history of substance abuse obtain employment.
We supported this legislation (CLICK HERE for our memo), which now advances to the full Senate.
Cannabis Control Board (S.B. 49)
The Senate Law and Justice Committee voted 10-1 to advance Senate Bill 49 last Tuesday.
This legislation would establish the Pennsylvania Cannabis Control Board and transfer oversight and regulatory authority of Pennsylvania’s medical marijuana law from the state Department of Health to this new entity.
Years following medical marijuana legalization, employers continue to report significant confusion with the law and a lack of clarity that is complicating their ability to maintain a safe work environment, particularly in safety-sensitive industries. We are hopeful that a new regulatory authority will focus on workplace safety and effectively implement future legislation.
We supported this legislation (CLICK HERE for our memo), which now advances to the full Senate.