With budget hearings now concluded, Senate lawmakers returned to Harrisburg last week, advancing proposals related to artificial intelligence, worker cooperatives, and Pennsylvania’s inheritance tax. Here’s a recap of last week’s legislative action most relevant to employers:

 

AI Chatbot Regulation (S.B. 1090; Pennycuick)

The Senate voted 49-1 to pass Senate Bill 1090 last Tuesday, legislation that requires tech companies to implement safeguards to better protect users, particularly children, interacting with artificial intelligence chatbots.

Specifically, the bill requires platforms to prevent chatbots from generating content that promotes suicide, self-harm, or violence. The bill also includes provisions mandating that platforms redirect users who express an interest in self-harm to suicide-prevention hotlines and to periodically remind users that the chatbot is not human.

According to State Affairs:

“The legislation comes as officials at the state and federal level of government have been working to respond to concerns about the mental health threat as more people, particularly young people, turn to AI chatbots for advice and as a form of socialization.”

This legislation now goes to the House Communications and Technology Committee.

 

Worker Cooperatives (H.B. 135; Krajewski)

The Senate Labor & Industry Committee unanimously voted to advance House Bill 135 last Wednesday.

This legislation would lower the number of workers required to register for a worker cooperative (commonly referred to as a “co-op”) in Pennsylvania from five to three.

A worker cooperative is a model in which the business is owned and operated by the employees, who may qualify for tax benefits. Smaller groups have expressed interest in creating a cooperative, and the PA Chamber supports individuals pursuing a business model they believe is in their best interest.

We supported this legislation, which now goes to the full Senate.

 

Inheritance Tax Exemption (S.B. 100; Brooks)

The Senate Finance Committee unanimously voted to advance Senate Bill 100 last Wednesday.

This legislation would exempt the first $100,000 of property from the Inheritance Tax for property transferred to another family member.

Providing this exemption would offer relief to many small family-owned businesses.  Pennsylvania is currently only one of six states to impose an inheritance tax.

We supported this legislation (CLICK HERE for our memo), which now goes to the full Senate.