The Pennsylvania House of Representatives and Senate returned to session in Harrisburg last week, advancing proposals related to energy development, medical cannabis regulation, artificial intelligence, transportation, and more.

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

 

Geothermal Energy Development (H.B. 2076; Venkat)

The House of Representatives voted 118-83 to pass House Bill 2076 last Monday.

This legislation establishes a comprehensive regulatory framework for the exploration, development, and production of geothermal energy in Pennsylvania. The bill authorizes geothermal projects statewide, assigns regulatory authority to the Department of Environmental Protection and the Environmental Quality Board, clarifies ownership of geothermal resources, creates a permitting and enforcement process, and establishes a dedicated Geothermal Energy Development Fund to support oversight and remediation.

The bill creates a clear and predictable framework for geothermal energy development, providing businesses with regulatory certainty around permitting, ownership, and oversight.

While we understand that concerns have been raised about specific elements of the bill, we support its continued advancement (CLICK HERE for our memo) with the expectation that further amendments will be considered. The bill now goes to the Senate.

 

AI Disclosure in Advertising (S.B. 806; Pisciottano)

The Senate Communications and Technology Committee voted 11-0 to advance Senate Bill 806 last Wednesday.

This legislation would create new requirements and potential penalties for the use of AI-generated media in advertising, aiming to address deceptive uses of synthetic content that could mislead consumers.

An amendment to this bill (A03233) makes it significantly more workable for the business community. It restructures the legislation as a standalone act focused on deceptive uses of synthetic content in advertising, narrows its scope, clarifies disclosure requirements, and adds exemptions.

The amendment also establishes a clear enforcement framework limited to the Attorney General and district attorneys, with defined penalties, rather than expansive liability under the Unfair Trade Practice and Consumer Protection Law.

These changes better align the legislation with its targeted purpose while providing greater clarity and predictability for businesses navigating emerging technologies.

We supported this amendment (CLICK HERE for our memo), which was approved, and the amended bill now goes to the full Senate.

 

Cannabis Control Board (S.B. 49; Laughlin)

The Senate Law & Justice Committee voted 7-4 to advance Senate Bill 49 last Monday.

This legislation would establish the Pennsylvania Cannabis Control Board, transferring oversight and regulatory authority of Pennsylvania’s medical marijuana law from the state Department of Health to this new entity.

Years following medical marijuana legalization, employers continue to report significant confusion with the law and a lack of clarity that is complicating their ability to maintain a safe work environment, particularly in safety-sensitive industries. We are hopeful that a new regulatory authority will focus on workplace safety and either promulgate regulations or implement legislation to address employer concerns.

While we understand some concerns have been raised with potential new private rights of action in the bill, we support its continued advancement and urge lawmakers to continue working toward an agreement.

Ultimately, we supported this legislation (CLICK HERE for our memo) which now goes to the full Senate.

 

AI Disclosure Mandate (H.B. 95; Pielli)

The House Communications and Technology Committee voted 14-12 to advance House Bill 95 last Tuesday, legislation similar to Senate Bill 806 but with a few key differences.

As amended by Amendment A02661, House Bill 95 is meaningfully improved for businesses because it narrows the scope to deceptive synthetic advertising content, updates and expands good faith publisher exemptions, and provides a longer 365-day implementation window, all of which make compliance more manageable and reduce unintended exposure. However, because A02661 does not remove the private right of action, businesses would still face potential litigation risk.

This bill imposes new disclosure mandates whenever AI-generated content appears in advertising and expands the Unfair Trade Practices and Consumer Protection Law enforcement into an entirely new area, increasing regulatory and compliance burdens for businesses. Even with the improvements made by A02661, the bill still creates significant risk, particularly because the private right of action remains, leaving businesses exposed to costly litigation.

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

 

Regulating AI in Health Care (H.B. 1925; Venkat)

The House Communications and Technology Committee also voted 19-7 to advance House Bill 1925 last Tuesday.

This legislation would establish a broad new regulatory framework governing how artificial intelligence is used by hospitals, insurers, and other parts of Pennsylvania’s healthcare ecosystem.

While we appreciate the positive amendments made to H.B. 1925, we remain concerned that establishing a sector-specific AI framework for healthcare could create unnecessary complexity, while duplicative reporting requirements and penalties may increase costs and compliance burdens.

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

 

Modernizing the Highway Transfer “Turnback” Program (H.B. 2266; Shusterman)

The House Transportation Committee voted 26-0 to advance House Bill 2266 last Monday.

This legislation would modernize the Highway Transfer “Turnback” Program by updating maintenance payments to municipalities and incorporating inflationary adjustments. These changes improve fairness and predictability for local governments that have assumed responsibility for former state roads. The bill encourages greater municipal participation in the program by better aligning funding with actual maintenance costs.

Local governments are best positioned to manage roads that primarily serve local travel, business access, and development activity. Encouraging municipalities to assume ownership of appropriate roadways supports more responsive maintenance and better integration with local land use and economic planning. Incentivizing local stewardship of roadways supports efficient asset management and allows state transportation resources to remain focused on major corridors critical to statewide commerce.

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

 

Empowering Local Public-Private Partnership Opportunities (H.B. 2469; Powell)

The House Transportation Committee also voted 26-0 to advance House Bill 2469 last Monday.

This legislation would clarify the ability of counties and major municipalities to utilize public-private partnerships (P3) to deliver transportation projects. The bill builds on Pennsylvania’s existing P3 framework by allowing local governments to collaborate with the private sector on project design, financing, construction, and maintenance. It preserves the current review structure while expanding local flexibility.

Public-private partnerships encourage investment, innovation, and efficiency in infrastructure delivery. Expanding P3 opportunities creates new avenues for business participation while accelerating project timelines and improving infrastructure quality. Reliable, modern transportation systems support economic growth, workforce access, and long-term competitiveness across the Commonwealth.

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