The Pennsylvania House of Representatives and Senate were back in session last week. While top budget negotiators reportedly met in the governor’s office last Tuesday to attempt to resolve the budget impasse, which has extended into its fourth month, the lawmakers did not provide an update on negotiations.
However, lawmakers separately advanced several proposals that would impact Pennsylvania’s business community, including items related to intellectual property, regulatory and licensing changes, new mandates on businesses, workforce development, and more.
Here’s a recap of last week’s legislative action that’s most relevant to employers.
Right-to-Repair (H.B. 1512)
The House of Representatives voted 110-93 to pass House Bill 1512 last Monday.
This legislation would require original equipment manufacturers of electronics and appliances that contain embedded software, such as cellphones, washers, dryers, refrigerators, televisions, and laptops, to make available to consumers and independent repair shops the information and parts needed to repair those devices and fully disclose any contract provision preventing third-party repair.
Right-to-Repair legislation undermines intellectual property rights, compromises product safety, and can lead to unauthorized modifications that jeopardize both consumer safety and the integrity of the original manufacturer’s standards.
We opposed this legislation (CLICK HERE for our memo), which now moves on to the Senate.
Ambiguous Licensing Standards for Mortgage and Banking Industry (H.B. 1882)
The House of Representatives also voted 104-99 to pass House Bill 1882 last Tuesday.
This legislation would create confusion around mortgage originator licensing requirements and impose impractical disclosure mandates, leading to increased compliance costs and operational uncertainty for mortgage lenders across Pennsylvania. The bill’s vague language around a new definition of “branch manager” risks inconsistent enforcement.
While intended to enhance consumer protection for reverse mortgages, the bill creates new compliance confusion for the financial services industry and detracts from the desired outcomes of the legislation.
We opposed this legislation (CLICK HERE for our memo), which now moves on to the Senate.
Worker Cooperatives (H.B. 135)
The House Labor & Industry Committee unanimously voted to advance House Bill 135 last Tuesday.
This legislation would lower from five to three the number of individuals required to form a worker cooperative.
A worker cooperative is a specific business model in which the business is owned and operated by its employees, who may be eligible for certain tax benefits. Under current Pennsylvania law, five individuals are required to file as a cooperative corporation. We understand that there may be interest from smaller groups in creating a cooperative, and we see no reason why the state government should prevent individuals from pursuing a business model they believe is in their best interest.
We supported this legislation (CLICK HERE for our memo), which now moves to the full House.
Backtracking on UC Compromise (H.B. 1995)
The House Labor and Industry Committee voted 14-12 to advance House Bill 1995 last Tuesday.
This legislation would have postponed a previously agreed-to Unemployment Compensation Trust Fund (UCTF) cost-savings measure that is triggered to go into effect next year.
Act 144 of 2016 was a compromise UC package that expanded benefit eligibility for certain seasonal workers in exchange for cost saving measures that would be triggered in future years if the UCTF remained below an adequate solvency level. House Bill 1995 violates the terms of this compromise by postponing one of the triggers, despite the fact that the UCTF remains insolvent and employers continue to pay some of the highest UC taxes in the country.
We opposed this legislation (CLICK HERE for our memo).
New Building Mandate (H.B. 1558)
The House Children & Youth Committee voted 15-11 to advance House Bill 1558 last Wednesday.
This legislation would require the installation of diaper-changing stations in publicly accessible buildings.
The bill would have significant implications for a broad range of private businesses who would be subject to the new mandate, responsible for all associated costs, and could face severe penalties. Despite their status as a key stakeholder, we are not aware of any employers or business community representatives who have been consulted on this legislation.
Accordingly, we opposed this legislation and suggested a more deliberative process.
Office of New Pennsylvanians (H.B. 1113)
The House State Government Committee voted 14-12 to advance House Bill 1113 last Tuesday.
This legislation would establish the Office of New Pennsylvanians to attract, retain, and embrace immigrants in the Commonwealth.
Pennsylvania employers continue to suffer from a dramatic workforce shortage. This legislation helps ensure that legal immigrants and visa holders, who comprise a crucial component of Pennsylvania’s workforce, are equipped with the resources necessary to fill an array of job openings in critically in-demand fields and start new businesses.
We supported this legislation (CLICK HERE for our memo), which now moves on to the full House.
Broadband Regulatory Modernization (S.B. 491)
The Senate Communications & Technology Committee voted 6-5 to advance Senate Bill 491 last Tuesday.
This legislation would modernize Pennsylvania’s outdated telecommunications regulations by eliminating obsolete landline-specific requirements, allowing companies to redirect resources toward expanding rural broadband access.
Senate Bill 491 would have a positive impact on Pennsylvania’s telecommunications industry by reducing outdated regulatory burdens that currently divert resources away from broadband expansion. By streamlining compliance requirements, businesses — especially rural providers — would gain flexibility to invest in modern infrastructure and deploy high-speed internet more efficiently.
We supported this legislation (CLICK HERE for our memo), which now moves on to the full Senate.