Source: PA Chamber of Business and Industry

Both the House and Senate were in session last week, considering proposals related to paid leave, workers’ compensation, tax appeals, and more. Here is a rundown of some of last week’s legislative action relevant to employers.

HOUSE

PA Board of Finance and Revenue Appeals Reform (S.B. 1051 and H.B. 1994)

The House Finance Committee last week voted to advance two identical PA Chamber-supported measures aimed at reforming the Board of Finance and Revenue (BF&R) appeals process.

Senate Bill 1051 and House Bill 1994 would each 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.

The PA Chamber supported both bills (CLICK HERE for our memo), which passed unanimously and will advance to the full House of Representatives to await votes on final passage.

Regulating Recurring Subscriptions (H.B. 116 and H.B. 2557)

The House Consumer Protection, Technology, and Utilities Committee last week voted to advance two bills opposed by the PA Chamber regulating recurring subscriptions.

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, House Bill 2557 would amend the UTPCPA to require notification of automatic renewals and automatic enrollment provisions in promotional offers.

Both proposals 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.

Both bills passed the committee by votes of 24-1 and now advance to the full House for consideration.

Right to Repair (H.B. 2535)

The House Commerce Committee last week voted along party lines to advance House Bill 2535.

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.

The PA Chamber opposed this legislation (CLICK HERE for our memo) 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.

Committee lawmakers voted 14-11 to advance H.B. 2535, which now goes to the full House for consideration.

Mandatory Paid Leave (H.B. 2548)

The House Labor & Industry Committee last week voted along party lines to advance House Bill 2548.

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, or other factors; and prohibit employers from developing customized leave policies that benefit their employees while still accommodating their own unique staffing requirements.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which lawmakers voted 14-11 to advance. House Bill 2548 now goes to the full House for consideration.

Greenwashing (H.B. 2525)

The House Judiciary Committee last week voted along party lines to advance House Bill 2525.

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.

The PA Chamber opposed this legislation, which lawmakers voted 14-11 to advance. House Bill 2525 now goes to the full House for consideration.

Restricting PFAS Chemicals (S.B. 144)

The House Veterans Affairs and Emergency Preparedness Committee last week voted 23-2 to advance Senate Bill 114.

This legislation would establish new statewide requirements restricting the use of Class B foams containing added PFAS chemistries in firefighting applications.

The PA Chamber was neutral on the underlying legislation, however they opposed an amendment, which lawmakers voted to adopt by a narrower 15-10 margin, with language that broadens the scope of this legislation. Senate Bill 144 now advances to the full House for consideration.

Food Processing Residuals (H.B. 2393)

The House Environmental Resources and Energy Committee last week voted 23-2 to advance House Bill 2393.

This legislation would amend the Solid Waste Management Act, making several changes to the way that Pennsylvania handles food processing residue (FPR).

The PA Chamber recommended the legislation be amended to reflect issues raised by employers from the agriculture and food industries. These issues included classification, land use, and disclosure requirements.

Fortunately, an omnibus amendment addressing these concerns was unanimously adopted by the committee. House Bill 2393 now advances to the full House for consideration.

SENATE

Workers’ Compensation Expansion (H.B. 1632)

The Senate Labor & Industry Committee last week voted to advance House Bill 1632.

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 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.

The PA Chamber urged lawmakers to hold off considering this proposal and continue working with stakeholders to find a compromise (CLICK HERE for our memo).

Committee lawmakers voted 10-0 to advance H.B. 1632, which now goes to the full Senate.

Prevailing Wage Expansion (H.B. 2153)

The Senate Labor & Industry Committee also voted 10-0 last week to advance House Bill 2153.

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.

The bill was amended to remove another objectionable provision prohibiting employers from utilizing “split pay” policies which increase efficiency on the worksite. The PA Chamber welcomed the removal of this provision but remain opposed to this legislation, which advanced the committee last Tuesday. It now goes to the full Senate.

Statutory Cap Reform for Catastrophic Cases (S.B. 1300)

The Senate Judiciary Committee last week voted to advance Senate Bill 1300.

This legislation would increase the statutory caps on how much money an individual could recover from catastrophic lawsuits against state and local governments. These caps allow for responsible fiscal planning and stewardship of taxpayer funds, while also permitting reasonable recovery.

The Legislative Budget and Finance Committee recently reported that only one percent of the claims brought against local and state agencies are not fully satisfied under the current statutory caps. Senate Bill 1300 addresses those cases – it substantially increases the current limits for recovery in the most serious of cases.

The PA Chamber supported this legislation (CLICK HERE for their memo), which advanced the committee by a vote of 9-4. Senate Bill 1300 now goes to the full Senate.

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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.