The Pennsylvania House of Representatives and Senate returned to Harrisburg last week, with only weeks remaining before the constitutionally mandated June 30 deadline for a state budget agreement.
While negotiations remain underway, lawmakers advanced several proposals that will impact employers across the Commonwealth., including legislation related to charter schools, professional licensure, transportation funding, and the regulation of health care transactions.
House lawmakers also advanced proposals to increase the state minimum wage and implement new energy sustainability standards as part of Gov. Josh Shapiro’s “Lightning” energy plan.
Here is a recap of last week’s legislative action most relevant to employers:
Cyber Charter School Reform (H.B. 1500; Isaacson)
The House of Representatives voted 104-98 to approve House Bill 1500 last Wednesday.
This legislation aims to drastically change funding mechanisms and regulations on cyber charter schools in the Commonwealth including untenable tuition caps and budget reserve limitations.
Charter schools have provided a valuable alternative to traditional public schools. These schools often offer specialized programs and innovative teaching methods that cater to diverse learning needs. Limiting the growth or funding of charter schools will restrict access to these unique educational opportunities, particularly for students who are not thriving in conventional school environments.
We opposed this legislation (CLICK HERE for our memo), which now heads to the Senate.
CPA Licensure Modernization (S.B. 719; Hutchinson)
The Senate Consumer Protection & Professional Licensure Committee voted unanimously (14-0) to advance Senate Bill 719 last Tuesday.
This legislation would enhance and modernize certified public accountant (CPA) licensure requirements by establishing an additional pathway for CPA licensure and enhance CPA mobility to ensure CPAs licensed in other states are able to practice in Pennsylvania.
Under current law, candidates seeking CPA licensure must obtain a master’s degree or 150 credits, gain one year of professional experience, and pass the Uniform CPA Exam. This legislation would establish an additional pathway for candidates with a bachelor’s degree who gain two years of professional experience and pass the Uniform CPA Exam. The legislation also modernizes rules related to interstate mobility of CPAs.
We supported this legislation (CLICK HERE for our memo), which now heads to the full Senate.
Local Transportation Funding Flexibility (S.B. 205; Rothman)
The Senate Transportation Committee voted unanimously (14-0) to advance Senate Bill 205 on Wednesday.
This legislation expands how counties can use transportation funds for bridge repair and maintenance projects. Senate Bill 205 is a commonsense provision to broaden the impact of state infrastructure dollars to additionally be used for municipal-owned bridges. This will allow state investment to impact more projects and provide enhanced flexibility for local governments to prioritize areas of greatest need, regardless of whether the bridge is owned by a county or municipality.
This important clarification will help streamline bridge repairs at the most local level and support critical infrastructure required for the safe transport of people, goods, and services across Pennsylvania.
We supported this legislation (CLICK HERE for our memo), which now heads to the full Senate.
Minimum Wage Increase (H.B. 1549; Dawkins)
The House Labor & Industry Committee voted along party lines (14-11) to advance House Bill 1549 last Wednesday.
This legislation would increase Pennsylvania’s minimum wage incrementally, require annual increases thereafter, and set the tipped wage rate at 60 percent of the regular minimum wage. Rates and increase timelines would be based on county:
- Philadelphia would increase to $15 in 2026;
- Allegheny as well as counties of the 2nd Class A and 3rd class would gradually increase to $15 by 2028;
- All other counties would gradually increase to $12 by 2028.
Pennsylvania’s Independent Fiscal Office has previously estimated that a $15 minimum wage would lead to approximately 30,000 Pennsylvanians losing their jobs or seeing reduced hours, and they predict that rural and small employers are most likely to be impacted. Small non-profits and childcare centers have also expressed doubt about their ability to absorb such a significant increase in labor costs, as have restaurants, many of which would be forced to increase labor costs by as much as 320 percent in just a couple of years.
We expressed concerns about similar legislation last session (H.B. 1500; CLICK HERE for our memo from last year). House Bill 1549 now heads to the full House.
Pennsylvania Reliable Energy Sustainability Standards (H.B. 501; Otten)
The House Environmental and Natural Resource Protection Committee voted along party lines (14-12) to advance House Bill 501 last Monday.
This legislation would amend the Alternative Energy Portfolio Standards Act (AEPS) to create the Pennsylvania Reliable Energy Sustainability Standards Act (PRESS). The bill designates various energy sources as PRESS energy sources and mandates that a portion of electricity sold in Pennsylvania be generated from PRESS sources.
Any change to AEPS requires thoughtful discussion amongst all involved stakeholders. This bill, as currently drafted, fails to incorporate this input and takes an approach that could negatively impact Pennsylvania’s economy, increase energy costs, and compromise grid reliability. As such, the Chamber will continue to engage lawmakers, encourage robust discussion, and urge the incorporation of relevant stakeholder feedback.
We opposed this bill (CLICK HERE for our memo), which now heads to the full House.
Regulating Health Care Transactions (H.B. 1460; Borowski)
The House Health Committee voted unanimously (26-0) to advance House Bill 1460 last Tuesday.
This legislation would empower the Pennsylvania Attorney General to unilaterally determine the fate of health care transactions in Pennsylvania and decide whether the transaction is “against the public interest.”
The legislation creates a new, duplicative, and bureaucratic review process while placing the financial cost for the process back onto health care providers. This legislation is duplicative of existing state and federal processes and adds power to a single government agency to subjectively determine if health care transactions are “against the public interest”.
We opposed this bill (CLICK HERE for our memo), which now heads to the full House.