As lawmakers returned to Harrisburg last week, several proposals affecting Pennsylvania employers advanced through the legislative process. From utility regulation and AI governance to workplace mandates, health care transparency, and data center development, the measures highlighted ongoing debates over Pennsylvania’s business climate, regulatory environment, and competitiveness.

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

Amending Public Utility Commission Standards (H.B. 2184)

The House of Representatives voted 150-53 to pass House Bill 2184 last Tuesday.

This legislation would require the Public Utility Commission (PUC) to explicitly consider “public interest” in their proceedings and decisions.

This legislation is unnecessary, as PUC practice and approval processes already emphasize the concept of “public interest.” The proposal is also detrimental as it would complicate PUC proceedings by forcing it to expand the factors it required to consider beyond the scope of its intended purpose.

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

 

AI Companions (H.B. 2006)

The House voted 133-70 to pass House Bill 2006 last Monday.

This legislation would establish a new regulatory framework for AI companions, imposing requirements related to disclosures, age verification, and content controls. The bill would authorize enforcement by the Pennsylvania Attorney General and expose companies to significant civil penalties for violations.

Businesses agree that AI systems should be age-appropriate, safe, and transparent. Unfortunately, House Bill 2006 goes much further in its regulations than comparable laws adopted in other states.

The legislation’s broad requirements, ambiguous standards, and excessive penalties would add to the growing patchwork of state AI regulations, creating compliance uncertainty and potentially discouraging adoption of AI technologies in Pennsylvania.

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

 

Prison Industry Enhancement Authority (H.B. 2154)

The House voted 116-87 to pass House Bill 2154 last Monday.

This legislation would establish the Prison Industry Enhancement Authority to facilitate joint ventures between correctional facilities and private industry.

This legislation has potential to benefit both incarcerated individuals and employers. However, we have expressed concerns with several aspects of the bill including the employment status of participating individuals and liability on employers.

We urged lawmakers to hold consideration of the bill while stakeholders develop compromise language. It now goes to the Senate.

 

Data Center NDA Ban (S.B. 1408)

The Senate Communications and Technology Committee voted 11-0 to advance Senate Bill 1408 last Tuesday.

This legislation bans the use of NDAs between data center developers and potential host municipalities.

Developers frequently depend on confidentiality while evaluating potential sites, negotiating infrastructure needs, and assessing project feasibility, and the use of nondisclosure agreements during these preliminary discussions is a common and widely accepted practice in economic development projects.

Restricting the use of NDAs may discourage companies from engaging with local governments until later in the process or could lead some projects to be directed toward states that provide greater flexibility for confidential business negotiations.

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

 

Flexible Use of County Bridge Funding (H.B. 2437)

The Senate Transportation Committee voted 14-0 to advance House Bill 2437 last Wednesday.

This legislation allows counties to reinvest unused dollars from completed Marcellus Legacy Fund bridge projects into other eligible bridge needs within the county.

Under current law, these funds are restricted to a narrow category of at-risk deteriorated bridges, which can leave remaining balances unused once those specific projects are complete. This legislation enables counties to apply overage dollars more broadly across bridge maintenance and repair needs, consistent with federal and state requirements.

Providing counties with this flexibility supports more efficient project delivery and helps maintain critical transportation infrastructure across the Commonwealth.

We supported this legislation, which now moves to the full Senate.

 

Workplace Regulations (H.B. 2135)

The House Labor and Industry Committee voted 14-12 to advance House Bill 2135 last Tuesday.

This legislation imposes new workplace requirements on employers regarding an employee or respective employee’s condition related to pregnancy, childbirth, and menopause.

This legislation duplicates and effectively circumvents existing federal and state workplace protections including under the Pregnant Workers Fairness Act, the Pregnancy Discrimination Act, the Providing Urgent Maternal Protections for Nursing Mothers Act, the Americans with Disabilities Act, and the Pennsylvania Human Relations Act.  Legislation that is similar in purpose to existing law but different in application and detail can complicate compliance for employers.

We urged lawmakers to hold consideration of this bill. It now moves to the full House.

 

Removing PHC4 Sunset Provision (H.B. 2702)

The House Health Committee voted 24-2 to advance House Bill 2702 last Tuesday.

This legislation would remove the sunset provision for the Pennsylvania Health Care Cost Containment Council (PHC4).

PHC4 empowers Pennsylvanians through transparency, providing access to data, research, analysis, and reporting focused on the cost, utilization, and quality of health care delivery in the Commonwealth.  It was founded 40 years ago with the backing of the business community and labor. Having to seek reauthorization every couple years has at times created uncertainty and reduces PHC4’s ability to focus on their mission.

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