Last Week In the Legislature
Source: PA Chamber for Business and Industry
Check out the updates that came out of the PA General Assembly last week with a recap from the PA Chamber for Business and Industry.
To learn more about the Columbia Montour Chamber's Advocacy efforts by coming to the virtual Governmental Affairs meeting this coming Friday, April 5th. All members of the Chamber are invited to attend and may do so by contacting Chris Berleth via email for meeting details. While no major business-related measures reached the floor, lawmakers moved forward with bills on taxes, employment law, workplace standards, and legal liability.
Here is a rundown of last week’s legislative action most relevant to employers.
CNIT Rate Reduction (S.B. 207; Rothman)
Last Wednesday, the Senate Finance Committee voted 7-4 to advance Senate Bill 207.
This legislation would build on bipartisan tax reform enacted in 2022 by immediately reducing the Corporate Net Income Tax (CNIT) to 4.00% effective January 1, 2026.
This legislation would maximize the benefits of a lower CNI by immediately lowering the rate to 4.00%. Under current law, the tax rate will gradually be lowered from the current 7.99% to 4.99% in 2031.
A lower CNI won’t just generate more overall investment; studies show economic gains across the board when the corporate tax rate is reduced, including increased GDP, higher wages, increased home values and job creation at larger and smaller businesses.
The PA Chamber for Business and Industry was proud to support this bill (CLICK HERE for their memo) and applauded its passage, as reported in the Central Penn Business Journal last week. The bill now moves to the full Senate for consideration.
Increasing the Vendor Discount (S.B. 473; Phillips-Hill)
The Senate Finance Committee also voted 8-3 to advance Senate Bill 473 last Wednesday. Minority Chair Sen. Nick Pisciottano (D-Allegheny) was the lone Democrat to vote “yes” on the bill.
This legislation would amend the Tax Reform Code by increasing the vendor discount to businesses for collecting and remitting sales tax.
Prior to 2016, businesses that timely submitted their sales tax collections were able to keep one percent of the total collected to offset the costs incurred by businesses in collecting and remitting sales tax.
This offset, known as the vendor discount, was severely limited in 2016 to a maximum of $300 annually. S.B. 473 would allow businesses to keep one percent on the first one million dollars collected and one-quarter of a percent on any amount above one million dollars. This will provide relief for businesses that have been experiencing increased cost pressures.
The PA Chamber for Business and Industry supported this bill (CLICK HERE for their memo) and similarly applauded its passage. Senate Bill 473 now moves to the full Senate.
Weaponizing the Equal Pay Law (H.B. 630; Shusterman)
The House Labor & Industry Committee voted 14-12 to advance House Bill 630 last Tuesday.
This legislation would make drastic changes to Pennsylvania’s Equal Pay law, adding new vague standards, essentially gutting the exceptions section of the law and making it nearly impossible for an employer to defend against a legal action brought under this Act.
The bill would also restrict the type of questions employers may ask job applicants related to wages, significantly increase penalties, create new causes of action, extend the statute of limitations from two to three years, and allow for uncapped punitive damages.
Federal and state laws require employers to pay women and men equally for equal work. The law has also always recognized pay disparities often do exist for reasons that have nothing to do with discrimination and therefore provides several exceptions.
This law guts these exceptions, putting the burden on employers to demonstrate that discrimination was not a factor and setting an impossibly high bar to do so. This legislation will expose honest, law-abiding employers to lawsuits and severe penalties, which may particularly harm small businesses.
The PA Chamber of Business and Industry opposed this bill (CLICK HERE for their memo); it now advances to the full House.
Healthcare Facility Regulations (H.B. 926; Krueger)
The House Labor & Industry Committee also voted 14-12 to advance House Bill 926 last Tuesday.
This legislation proposes a comprehensive set of regulations on healthcare facilities including policies related to safety standards, training, reporting, establishing internal committees, risk assessment, among other areas.
As well-intended as it may be, legislation of this significance should at least be carefully developed in consultation with the employers who will be required to implement and operate under it.
This bill has also prompted concerns that it is duplicative with existing federal standards, creating compliance traps, and may encourage unfair or unfounded lawsuits against healthcare facilities.
The PA Chamber of Business and Industry opposed this bill (CLICK HERE for their memo); it now advances to the full House.
Veteran-Owned Small Business Designation (H.B. 993; Inglis)
The House Veterans Affairs and Emergency Preparedness Committee unanimously voted to advance House Bill 993 last Tuesday.
This legislation would direct the Department of Military & Veterans Affairs to create a logo designating that a business is owned and operated by a veteran.
House Bill 993 will provide another incentive to encourage entrepreneurship in the Commonwealth. Given Pennsylvania’s low ranking in yearly entrepreneurship, any opportunity to promote small business development is a step toward fostering a more vibrant and competitive business environment.
We proudly supported this bill (CLICK HERE for their memo); it now moves to the full House for consideration.
Limited Liability for Food Donations (H.B. 615; Khan)
The House Judiciary Committee unanimously voted to advance House Billl 615 last Tuesday.
This legislation would amend the Donated Food Limited Liability Act to expand the current immunity from civil and criminal liability to apply to the donation of food that has exceeded the manufacturer’s recommended label date but is still fit for human consumption.
This legislation is a commonsense update to existing law that ensures businesses that donate surplus food can donate food that may be past the manufacturer’s “best by” date but is still safe to consume. Doing so will reduce food waste and support non-profits who rely on these donations to serve people in need.
The PA Chamber of Business and Industry supported this bill, which now moves to the full House.
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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.