While state budget talks continue between top negotiators, House lawmakers returned to session in Harrisburg last week to advance several proposals relevant to employers related to infrastructure, data privacy and security, unemployment compensation, and more.

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

 

Design Build Best Value (H.B. 1608)

The House of Representatives voted 191-12 to pass House Bill 1608 last Wednesday.

This legislation would allow PennDOT and the Turnpike Commission to use Design Build Best Value (DBBV) as an alternative procurement process for infrastructure design and construction.

DBBV is an innovative procurement method that enables state agencies to select construction partners based on a combination of qualifications, technical expertise, and cost, rather than just the lowest bid. Modernizing procurement practices, especially for large, complex infrastructure projects, fosters a more competitive and efficient marketplace that rewards quality and value.

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

 

Data Breach Lawsuits (H.B. 997)

The House also voted 112-91 to pass House Bill 997 last Wednesday.

This legislation would amend the Breach of Personal Information Notification Act to require companies to take reasonable steps to secure personal data from hacking and create new private rights of action against companies that are hacked.

House Bill 997 would create serious challenges for employers in Pennsylvania. By establishing a new private right of action, the bill shifts enforcement away from the Attorney General’s exclusive authority and instead opens businesses to lawsuits from private parties.

It also includes statutory damages, which allow individuals to recover more than their actual harm and significantly increase the risk of costly litigation. In addition, the bill prohibits the use of arbitration agreements, despite their proven track record of resolving disputes fairly, more quickly, and at lower cost than litigation.

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

 

Data Privacy (H.B. 78)

The House also voted 127-76 to pass House Bill 78 last Wednesday.

This legislation would regulate the collection and use of consumers’ personal data by providing consumers with certain rights and requiring businesses to protect and limit the collection of personal data.

The PA Chamber believes a national framework for data privacy regulation would be preferable to protect consumer data, promote transparency, and provide regulatory certainty in the marketplace. Congress, however, has not yet advanced consumer data privacy legislation and in the meantime 20 states have adopted a patchwork of data privacy laws. We have advocated that if lawmakers are to advance data privacy legislation at the state level, that they look to states such as Virginia and Connecticut, which crafted their laws with input from the business community.

Some concerns remain that the low threshold for covered entities (having the data of 50,000 individuals) will make it difficult for small businesses, but we are grateful to the sponsors for removing the private right of action from this proposal.

We appreciate ongoing efforts to address concerns with this bill and did not recommend opposing it (CLICK HERE for our memo); however, we will continue advocating for improvements as the bill moves through the process. It now goes over to the Senate.

 

Unemployment Pay for Striking Workers (H.B. 145)

The House Labor & Industry Committee voted 14-12 to advance House Bill 145 last Tuesday.

This legislation would reverse nearly 90 years of national and state precedent by providing that individuals who voluntarily go on strike are eligible for unemployment compensation benefits.

The proposal detrimentally impacts employers and the economy in several ways, including by unfairly tilting the playing field in the event of a labor dispute; increasing UC tax rate hikes for employers experiencing a strike; and exacerbating the current insolvency of the UC trust fund.

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

 

Price Gouging (H.B. 1496)

The House Consumer Protection, Technology, and Utilities Committee voted 17-9 to advance House Bill 1496 last Tuesday.

This legislation would extend the state Price Gouging Act beyond its current scope of state disaster emergency declarations by the Governor to also include declarations of local disaster emergencies by local governments.

As written, the Price Gouging Act places pricing limits on all consumer products and services, affecting businesses at every level, from manufacturers to retailers, regardless of their connection to the actual emergency.

While H.B. 1496 aims to make emergency declarations more localized, the underlying statute remains overly broad and lacks clarity. We urged lawmakers to hold off on considering this bill until important clarifying improvements could be made; it now moves to the full House.