Both chambers of the General Assembly returned to Harrisburg last week for legislative session. In an action-packed week that also featured the Governor’s budget address, lawmakers advanced several proposals related to energy, minimum wage, labor laws, and industry regulation.
Here’s a rundown of last week’s legislative action most relevant to the business community.
Overregulating the Food Industry (H.B. 2154; Haddock)
The House of Representatives voted 122-76 to pass House Bill 1923 last Wednesday.
This legislation proposes mandates for the food processing and meatpacking industries that address a wide range of employment and workplace policies, including dictating new employee orientation and training, workplace safety committees, and other areas.
The mandates in this bill are generally duplicative of those under other state or federal laws and, therefore, are likely to create compliance complications and expose employers to the penalties and civil actions outlined in the bill.
We opposed this legislation (CLICK HERE for our memo), which now advances to the Senate.
Energy Efficiency Appliance Standards (H.B. 660; O’Mara)
The House also voted 101-97 to pass House Bill 660 last Monday.
This legislation would mandate energy and water efficiency standards for certain commercial and residential appliances sold in the Commonwealth.
Imposing energy and water efficiency standards that are more stringent than federal levels will create additional costs, and new standards will create a competitive disadvantage with businesses in neighboring states that do not face similar regulations. The result could be lost sales and jobs, as consumers may choose to shop in other states.
We opposed this legislation, which now advances to the Senate.
Electric Generation Sites (S.B. 704; Yaw)
The Senate voted 28-20 to pass Senate Bill 704 last Wednesday.
This legislation would direct the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) to work together to identify suitable sites for natural gas electric generation projects.
Creating a coordinated process to evaluate and prepare viable sites will streamline development, reduce permitting uncertainty, and make Pennsylvania more competitive in attracting the investment needed to build new generation, and ensure Pennsylvania can meet future energy demands, support economic growth, and maintain grid reliability.
We supported this legislation (CLICK HERE for our memo), which now goes to the House.
Minimum Wage Increase (H.B. 2189; Dawkins)
The House Labor & Industry Committee voted 14-12 to advance House Bill 2189 last Tuesday.
This legislation would raise the minimum wage to $15 per hour over the next few years, increase the tipped minimum wage level by nearly 320 percent, and require annual increases to both rates.
The PA Chamber does not believe this is the right approach to help low-income Pennsylvanians and urged lawmakers to consider the unintended impact on small businesses, restaurants, non-profits, childcare providers, and other employers who may not have the capacity to absorb these significant costs.
We opposed this legislation (CLICK HERE for our memo).
Whistleblower Law Amendments (H.B. 603; Isaacson)
The House Judiciary Committee voted 14-12 to advance House Bill 603 last Wednesday.
This legislation would amend Pennsylvania’s Whistleblower Law, including by quadrupling the statute of limitations, preempting arbitration clauses, and adding punitive damages.
While whistleblower protections are important and should be safeguarded, this legislation goes well beyond its stated purpose of addressing workplace harassment. Current law balances the interests of employees and employers, and any amendments should be the product of negotiation; otherwise, lawmakers risk triggering unintended consequences that might inadvertently harm all parties.
We opposed this legislation (CLICK HERE for our memo), which now advances to the full House.
PUC “Large Load Customer” Regulation (H.B. 1834; Matzie)
The House Energy Committee voted 14-12 to advance House Bill 1834 last Monday.
This legislation would direct the PA Public Utility Commission to regulate data centers in Pennsylvania, create a state Low-Income Home Energy Assistance Program (LIHEAP) and Pennsylvania Energy Independence Account.
The bill proposes to impose a new, highly prescriptive regulatory framework on “large load users” by directing utilities to create a separate rate structure for large load customers, requiring mandatory curtailment during certain grid conditions, and establishing additional inflexible requirements on these facilities.
The proposed amendment defines “large load users” as facilities with a peak demand of 25 megawatts or greater at one or more interconnection points within the Commonwealth. This broader definition sweeps in manufacturers, industrial processors, and other large industrial facilities. Overall, the bill creates significant operational and financial risks for Pennsylvania’s data centers, as well as large industrial and manufacturing industries.
We opposed this legislation (CLICK HERE for our memo), which now advances to the full House.
Artificial Intelligence and Data Center Act (S.B. 939; Rothman)
The Senate Communications & Technology Committee voted 10-0 to advance Senate Bill 939 last Wednesday.
This legislation creates a more coordinated framework for data center development and strengthens Pennsylvania’s ability to compete for major investment by improving permitting predictability and modernizing the Commonwealth’s approach to emerging technologies.
The bill establishes the Artificial Intelligence, Data Center, and Emerging Technology Regulatory Sandbox. This program provides a safe, controlled testing zone where companies can pilot new technologies under real‑world conditions with greater flexibility and close oversight.
Senate Bill 939 also boosts Pennsylvania’s competitiveness by clearly defining high‑impact data centers and ensuring local ordinances treat these facilities consistently with other industrial development. Coupled with a fast‑track permitting process, the bill addresses one of the most significant barriers companies face: an unpredictable and lengthy permitting process.
The bill offers a balanced solution: strengthening economic competitiveness, reducing uncertainty, and supporting innovation while preserving important safeguards for consumers and communities.
We supported this legislation (CLICK HERE for our memo), which now advances to the full Senate.