June 30, was the end of the Fiscal Year and, technically the deadline for state lawmakers and Gov. Josh Shapiro to finalize a budget plan for the next Fiscal Year starting July 1st. As of this writing, however, negotiations are reportedly ongoing with no clear path to a finalized budget plan. Key sticking points include proposed increases in education and transit funding, the regulation of skill games, and how to responsibly manage the state’s finances amid a structural deficit. The PA Chamber continues to monitor developments and advocate for a timely, fiscally responsible resolution that supports economic growth and stability. Both the House and Senate are in session for part of this week, and we will keep our members informed as developments arise.

With both chambers in session last week, lawmakers advanced several bills with direct implications for Pennsylvania’s business climate. The House narrowly passed a harmful tax on businesses, while other measures on workforce development, CPA licensure, food donation liability, commercial redevelopment, and recurring subscription rules also advanced. Here is a recap of last week’s legislative action most relevant to employers:

Combined Reporting (H.B. 1610; Fiedler)

The House of Representatives voted 104-99 to advance House Bill 1610 last Tuesday.

This legislation would enact mandatory unitary combined reporting for Corporate Net Income (CNI) tax filers in Pennsylvania.

Combined Reporting would significantly increase the cost and complexity of filing tax returns; add complexity for groups that include entities subject to special apportionment or different taxes; and lead to an increase in tax appeals and litigation. It would also create a specific disincentive for multistate firms to do business in Pennsylvania and increase the uncertainty of tax collection forecasts.

The Council on State Taxation (COST) found in its analysis that this particular version of combined reporting “would make Pennsylvania’s corporate income tax code hostile to business and among the worst in the nation.”

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for their memo), which now moves to the Senate Finance Committee.

 Second Career Certification (H.B. 1404; Curry)

The House of Representatives unanimously voted (203-0) to pass House Bill 1404 last Monday.

This legislation would increase the length of time that future teachers and Career and Technical Education (CTE) educators can utilize an intern certification from three years to five years.

Employers across the Commonwealth continue to report challenges in filling open positions with qualified applicants, particularly in the skilled trades.

At the same time, CTE centers are experiencing high demand for enrollment — so much so that they have been forced to turn away applicants due to shortages of instructors and classroom space. This legislation offers meaningful relief to individuals seeking to enter the classroom and help educate Pennsylvania’s next generation of skilled workers.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for their memo), which now moves to the Senate Education Committee.

CPA Licensure Modernization (S.B. 719; Hutchinson)

The House of Representatives unanimously voted (202-0) to advance Senate Bill 719 last Thursday. It had passed the House Professional Licensure and the House Appropriations Committees in unanimous votes earlier in the week.

This legislation would enhance and modernize CPA licensure requirements by establishing an additional pathway for CPA licensure and enhance mobility to ensure CPAs licensed in other states are able to practice in Pennsylvania.

Under current law, candidates seeking CPA licensure must obtain a master’s degree or 150 credits, gain one year of professional experience, and pass the Uniform CPA Exam.  This legislation would establish an additional pathway for candidates with a bachelor’s degree who gain two years of professional experience and pass the Uniform CPA Exam. The legislation also modernizes rules related to interstate mobility of CPAs.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for their memo), which now – having passed both chambers of the General Assembly – awaits the governor’s signature to become law.

 Sharing Workforce Data (S.B. 101; Bartolotta)

The Senate voted 47-3 to advance Senate Bill 101 last Wednesday.

This legislation would direct the Department of Labor & Industry to share already collected workforce data on wages, new hires, and UC claimants with local workforce development boards.

Local workforce development boards are on the front lines working with claimants to search for work, apply for and accept jobs. These boards are seeking more timely access to existing data sets, including UC claim data, in order to better support their pathway to re-employment through targeted services and activities.

Unemployment Compensation and new hire data currently takes up to 24 months to access from the Pennsylvania Department of Labor and Industry. This legislation is one part of a broad strategy to help address labor shortages.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for thei memo), which now advances to the House Labor & Industry Committee.

 Redeveloping Shopping Malls (H.B. 1446; Siegel)

The House Local Government Committee voted 15-11 to advance House Bill 1446 last Wednesday.

This legislation is intended to incentivize municipalities and developers to redevelop shopping malls into mixed-use communities.

This legislation proposes well-intended policies to encourage redevelopment of outdated shopping malls, which could help local communities by expanding the tax base, providing housing opportunities, among other benefits.

Unfortunately, the legislation also provides for more favorable terms on the condition that applicants agree to a Project Labor Agreement (PLA) – a requirement to exclusively hire union labor and effectively discriminate against the majority of employees and contractors who are not unionized.

PA Chamber of Business and Industry is concerned that PLAs could undermine the effectiveness of the program, and urged lawmakers to remove this language from the bill. They will continue working to improve this legislation as it now moves to the full House.

Limited Liability for Food Donations (H.B. 615; Khan)

The Senate unanimously passed House Bill 615 on Thursday June 26th.  It had passed the Senate Agriculture and Rural Affairs Committee and the Appropriations committee earlier in the week.

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 of the Donated Food Limited Liability Act to ensure businesses 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 that rely on these donations to serve people in need.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for their memo), which now – having passed both chambers of the General Assembly – awaits the governor’s signature to become law.