While budget talks continue behind the scenes, the PA House of Representatives advanced legislation last week that impacts employers.

One bill would open the door to more lawsuits under a state-level False Claims Act, potentially increasing legal risks for businesses. Another would impose new requirements on subscription services and includes a private right of action, again potentially increasing legal risks for businesses. A third would modernize how PennDOT selects partners on major infrastructure projects by allowing a best-value approach rather than defaulting to the lowest-cost bidder.

Here is a recap of last week’s legislative action most relevant to employers.

 

 

State False Claims Act (H.B.1697; Burns)

The House of Representatives voted 136-67 to pass House Bill 1697 last Wednesday.

This legislation would allow private citizens to sue businesses on the state’s behalf based on alleged fraud.

If the lawsuit results in money recovered, the individual and their lawyer would get a bigger share — meaning the state would get less. This setup encourages more lawsuits, including weak or unfounded ones, which often target employers and health care providers who are pressured to settle rather than fight it out in court.

We opposed this legislation (CLICK HERE for our memo), which now moves over to the Senate.

 

Design Build Best Value (H.B.1608; Neilson)

The House Transportation Committee unanimously voted (26-0) to advance House Bill 1608 last Tuesday.

This legislation would give PennDOT and the Turnpike Commission another option for how they choose construction partners on major infrastructure projects.

It would allow agencies to utilize a method called Design Build Best Value — weighing experience, technical know-how, and cost — as an alternative procurement process for infrastructure design and construction. The goal is to get better results, reduce delays, and give businesses more certainty. This legislation provides PennDOT and the Turnpike with this allowance for eight years unless lawmakers renew it in the future.

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