A Look Ahead in the Legislature
House and Senate lawmakers are back in Harrisburg this week and, as always, the PA Chamber is currently monitoring several pieces of legislation with the potential to impact the state’s business community. Here is some of the legislation that employers should look out for in the week ahead.
PA Board of Finance and Revenue Appeals Reform (S.B. 1051 and H.B. 1994)
Senate Bill 1051 and House Bill 1994 are both expected to receive a vote in the House Finance Committee this week.
These proposals would allow the Board of Finance and Revenue (BF&R) to consider late-filed tax appeals from the Department of Revenue (DOR) if the taxpayer shows good cause. The bills also establish a settlement process at the BF&R as an alternative to the formal and lengthy court appeals process.
Taxpayers who disagree with a final decision made by DOR currently have 60 days to appeal the decision to the BF&R. Without the ability to accept late-filed appeals, cases are dismissed on a technicality rather than on their merits. The ability to settle disputes at the BF&R will provide for a quicker and fairer resolution to tax disputes, particularly for smaller businesses that do not have the resources for a drawn-out appeals process or litigation in the Commonwealth Court.
Regulating Recurring Subscriptions (H.B. 116 and H.B. 2557)
House Bill 116 and House Bill 2557 are each expected to receive a vote in the House Consumer Protection, Technology, and Utilities Committee this week.
House Bill 116 would amend the Unfair Trade Practice and Consumer Protection Act (UTPCPA) to require notification to consumers for automatic renewal subscriptions and allow consumers to cancel their subscriptions over the internet. Separately, H.B. 2557 would amend the UTPCPA to require notification of automatic renewals and automatic enrollment provisions in promotional offers.
This legislation would subject businesses to new private rights of action, which is an excessive enforcement mechanism. Enforcement of consumer contracts should rest solely with the Attorney General, to ensure a consistent approach to marketplace regulation. This legislation could also impede businesses’ ability to provide consumers with convenient, easy-to-use, and hassle-free options to continue services they value.
Right to Repair (H.B. 2535)
House Bill 2535 is expected to receive a vote in the House Commerce Committee this week.
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.
We oppose right-to-repair legislation because it 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.
Paid Leave Expansion (H.B. 2548)
House Bill 2548 is expected to receive a vote in the House Labor & Industry Committee this week.
This legislation would require all Pennsylvania employers to implement and fund paid leave.
The bill would force employers of all sizes to adopt a one-size-fits-all mandatory policy related to time off regardless of a company’s size, industry, etc.; and prohibit employers from developing customized leave policies that benefit their employees while still accommodating their own unique staffing requirements.
Workers’ Compensation Expansion (H.B. 1632)
House Bill 1632 is expected to receive a vote in the Senate Labor & Industry Committee this week.
This legislation would significantly expand eligibility for workers’ compensation benefits for various categories of employees diagnosed with mental health conditions. Under current law, mental health conditions are generally compensable for workers’ compensation medical and wage-loss benefits if they are related to a physical injury or the result of an incident outside of the normal scope of employment. Otherwise, mental healthcare costs are generally covered by regular health insurance.
The bill would also trigger WC benefit eligibility for certain categories of public employees for mental health conditions that result from normal work conditions, a paradigm shift that will significantly expand the program and could set a precedent to apply to the private sector
Prevailing Wage Expansion (H.B. 2153)
House Bill 2153 is also expected to receive a vote in the Senate Labor & Industry Committee this week.
This legislation would expand the Pennsylvania Prevailing Wage Act to include custom fabrication.
The PA Prevailing Wage Act requires pre-determined wages to be paid on public construction projects and can substantially increase project costs. This bill would expand this requirement to custom fabrication work, which will increase costs and create administrative challenges for employers, potentially divert projects to out-of-state competitors, and raise costs for taxpayers.
PRESS Energy Plan (H.B. 2277)
House Bill 2277 is expected to receive a vote in the House Environmental Resources and Energy Committee this week.
This legislation amends the Alternative Energy Portfolio Standards Act (AEPS) to create the Pennsylvania Reliable Energy Sustainability Standards Act (PRESS). The bill designates various energy sources as PRESS energy sources and mandates that a portion of electricity sold in Pennsylvania be generated from PRESS sources.
Any change to AEPS requires thoughtful discussion amongst all involved stakeholders. This bill, as currently drafted, fails to incorporate this input and takes an approach that could negatively impact Pennsylvania’s economy, increase energy costs, and compromise grid reliability. As such, the PA Chamber will continue to engage lawmakers, encourage robust discussion, and urge the incorporation of relevant stakeholder feedback.
Greenwashing (H.B. 2525)
House Bill 2525 is expected to receive a vote in the House Judiciary Committee this week.
This legislation would amend the Unfair Trade Practices and Consumer Protection Act (UTPCPA) to create a private right of action against employers for making deceptive environmental marketing claims, otherwise known as “greenwashing.”
Private rights of action lead to an increase in litigation, burdening the legal system and resulting in higher costs for both individuals and businesses. This can strain court resources and slow down the resolution of cases. They can also lead to frivolous litigation.
Restricting PFAS Chemicals (S.B. 144)
Senate Bill 114 is expected to receive a vote in the House Veterans Affairs and Emergency Preparedness Committee this week.
This legislation would establish new statewide requirements restricting the use of Class B foams containing added PFAS chemistries in firefighting applications
The PA Chamber supports the safe management of chemicals, including AFFF Class-B Firefighting Foam, however, we do not support a pending committee amendment that broadens the scope of this legislation.
Food Processing Residuals (H.B. 2393)
House Bill 2393 is expected to receive a vote in the House Environmental Resources and Energy Committee this week.
This legislation would amend the Solid Waste Management Act, making several changes to the way that Pennsylvania handles food processing residue (FPR).
Employers from agriculture and the food industry worked with lawmakers to address several issues regarding the underlying bill. We expect these concerns to be resolved through an amendment that clarifies procedural requirements including classification, land use, and disclosure requirements.
###
Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.