A Look Ahead for the Week of June 3, 2024
Source: PA Chamber of Business and Industry
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.
Childcare Subsidy Eligibility (H.B. 1486)
House Bill 1486 may receive a vote on the House Floor this week.
This legislation would ensure that families who see wage increases do not immediately see a drastic reduction in childcare subsidy eligibility. This legislation allows for a continuation of childcare support for one year after a change in family income.
Pennsylvania employers continue to suffer from a dramatic workforce shortage. This legislation helps ensure that working-age parents are not deterred from entering the workforce or expanding their working hours out of fear of losing their childcare subsidy.
Overregulating Food Processing Industry (H.B. 2235)
House Bill 2235 may also receive a vote on the House Floor this week.
This legislation proposes numerous mandates and a comprehensive regulatory framework specifically targeting the food processing industry.
Specifically, the bill proposes mandates on the food processing and meatpacking industries addressing a wide range of employment and workplace policies including dictating new employee orientation and training; time off; workplace safety committees; and response to a public health emergency; among other areas.
The mandates in this bill are generally duplicative with mandates that exist under other state or federal laws and therefore likely to create compliance complications and expose employers to the penalties and civil actions outlined in the bill.
Pennsylvania Board of Finance and Revenue Appeals Reform (S.B. 1051)
Senate Bill 1051 may receive a vote on the Senate Floor this week.
This legislation 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. It also establishes 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 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.
Bank Shares Goodwill Deduction Clarification (S.B. 742)
Senate Bill 742 may also receive a vote on the Senate Floor this week.
This legislation would amend the Tax Reform Code by clarifying that any goodwill filed by banks with the Federal Deposit Insurance Corporation (FDIC) is excluded from the bank shares tax calculation.
Goodwill is an intangible asset added to a balance sheet when any company acquires another business in a transaction at a price higher than the net fair value.
While goodwill has historically been allowed as a deduction from total bank equity in order to calculate a financial institution’s tax liability under the bank shares tax, the Department of Revenue has recently denied goodwill deductions that involve combinations of bank holding companies which result in the combination of subsidiary banks.
This impacts the vast majority of mergers, resulting in a tax increase, a competitive disadvantage for Pennsylvania banks, and a growth constraint for businesses and consumers. Every $1,000 paid in tax could be leveraged to provide $10,000 in loans.
Discouraging ‘Ghosting’ Interviews/Jobs (S.B. 1109)
Senate Bill 1109 is expected to receive a vote in the House Labor & Industry Committee this week.
This legislation clarifies existing Unemployment Compensation eligibility standards to codify that an individual is not eligible for benefits if they discourage their own employment.
Under current law, UC claimants are generally required to engage in an active search for work, including applying for open positions in their field, engaging in other work search activity, and interviewing for jobs. Unfortunately, employers report interviewing job candidates who admit they are only applying in order to comply with the work search requirement and often fail to show up for job interviews or work, known as “ghosting”.
This bill would clarify the law to disqualify claimants who discourage their own employment. It would not create any additional requirements for claimants who are searching or applying for work in good faith.
Zoning Reform for Housing Construction (H.B. 1976 and H.B. 2045)
House Bill 1976 and House Bill 2045 are expected to receive votes in the House Local Government Committee this week.
H.B. 1976 would revise zoning laws to allow multi-family housing and mixed-use development in urban areas zoned for office, retail, and parking with existing water and sewer systems. Similarly, H.B. 2045 would require municipalities with more than 5,000 residents to permit the use of duplex, triplex, and quadplex housing in areas currently zoned for single-family residences only.
Pennsylvania employers continue to express their struggles in finding qualified workers to fill open positions. Plentiful housing can enhance employee satisfaction, reduce commute times, and attract quality, qualified workers.
Office of New Pennsylvanians (H.B. 1630)
House Bill 1630 is expected to receive a vote in the House State Government Committee this week.
This legislation would establish the Office of New Pennsylvanians to attract, retain, and embrace immigrants in the Commonwealth.
Pennsylvania employers continue to suffer from a dramatic workforce shortage. This legislation helps ensure that immigrants, who comprise a crucial component of Pennsylvania’s workforce, are equipped with the resources necessary to be productive members of our society and fill an array of job openings in critically in-demand fields.
Direct Deposit for Workers’ Compensation Payments (S.B. 1232)
Senate Bill 1232 is expected to receive a vote in the Senate Labor & Industry Committee this week.
This legislation would allow workers’ compensation claimants to request payment of benefits by direct deposit or employers to require payment of benefits by direct deposit.
The bill will modernize the Workers Compensation Act by establishing a regulatory framework to allow employers to make worker’s compensation payments by direct deposit, streamlining the process. These reforms were unanimously recommended by the Workers’ Compensation Advisory Council.
Pharmacy Benefit Manager Regulations (S.B. 1000)
Senate Bill 1000 is expected to receive a vote in the Senate Health & Human Services Committee this week.
This legislation would establish new limits on Pharmacy Benefit Managers (PBMs) including limits related to reimbursement, spread pricing, pharmacy networks, and rebate reporting. The legislation would also establish a mandatory dispensing fee to be paid to pharmacies.
The inclusion of a mandatory dispensing fee will significantly increase the cost of health insurance for employers and individuals. We encourage lawmakers to continue to work with industry stakeholders on an alternative approach that will increase access while avoiding provisions that will significantly raise the cost of health insurance for employers and individuals.
The Columbia Montour Chamber of Commerce closely monitors proposed legislation and its potential impact on the local business community. Businesses are encouraged to offer feedback to Chamber President Chris Berleth, at cberleth@columbiamontourchamber.com.
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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.