Last Week in the Legislature – April 20, 2026

Source: PA Chamber of Business & Industry

House lawmakers returned to Harrisburg for legislative session last week, sending the governor’s budget proposal to the Senate and advancing measures related to data centers, workers’ compensation, public safety, and more.

Here’s a recap of last week’s legislative action most relevant to employers.

 

State Budget Update

The House of Representatives voted 107-94 to pass House Bill 2400 last Tuesday.

This legislation is identical to Gov. Josh Shapiro’s $53.2 billion budget proposal for Fiscal Year 2026-27 and is an early step by House Democrats in the months-long budget negotiation process.

The governor’s proposal calls for an increase of $2.7 billion from last year and would rely on hypothetical new revenues to pay for it, including taxes on skill games and legalized cannabis. Pennsylvania’s constitutionally mandated deadline for passing a state budget is June 30.

According to PennLive, “the most likely outcome is that, once a budget deal is reached, lawmakers will vote in committee to amend [House Bill 2400] by deleting all 193 pages and replacing them with new line items and dollar figures reflecting the final bargain.”

 

Fuel Gas Detector Act (H.B. 1522; Cepeda-Freytiz)

The House of Representatives voted 107-94 to pass House Bill 1522 on Wednesday.

This legislation would require the installation of natural gas alarms in businesses, residences, and other buildings and mandates penalties for noncompliance.

The language in this bill has prompted myriad questions from the business community, including those related to enforcement, liability protections, applicability, and the establishment of a new private right of action.

Unfortunately, several amendments recommended by the PA Chamber to improve and clarify the bill have not been considered (CLICK HERE for our memo). The bill now moves to the Senate.

New Building Mandate (H.B. 1558; Conklin)

The House of Representatives voted 102-99 to pass House Bill 1558 on Tuesday.

This legislation would require the installation of diaper-changing stations in publicly accessible buildings.

The bill would have significant implications for many private businesses that would be subject to the new mandate, responsible for all associated costs, and could face severe penalties. Despite their status as a key stakeholder, we are not aware of any employers or business community representatives consulted on this legislation.

We opposed this legislation and suggested a more deliberative process (CLICK HERE for our memo). The bill now moves to the Senate.

 

Data Center Reporting (H.B. 2150; Mullins)

The House of Representatives also voted 133-68 to pass House Bill 2150 on Monday.

This legislation would require data centers to report energy and water usage to the Pennsylvania Department of Environmental Protection (DEP).

The bill, as currently drafted, risks chilling investment, introduces security and confidentiality challenges, duplicates information already available through established sustainability reporting, and creates regulatory uncertainty for a rapidly growing industry.

We opposed this legislation, which now moves to the Senate.

 

Data Center Model Ordinance (H.B. 2151; Donahue)

The House of Representatives voted 124-77 to pass House Bill 2151 on Monday.

This legislation would direct the Pennsylvania Loal Government Commission to develop a data center model ordinance for municipalities.

This bill does not include data centers in the drafting process of a model ordinance. Any model ordinance should be stakeholder-driven and promote clarity, predictability, and flexibility without creating new regulatory hurdles, and reflect technological, operational, and economic realities of the data center industry.

We opposed this legislation, which now moves to the Senate.

 

Food Processing Residuals (H.B. 586; Friel)

The House of Representatives voted 172-29 to pass House Bill 586 on Wednesday.

This legislation provides for additional requirements for the storage and use of food processing residuals (FPRs) in farming operations.

A food processing residual is an incidental organic material generated by processing agricultural commodities for human or animal consumption. The food processing industry currently sources FPRs to the agriculture sector to improve soil health and increase yields.

We initially opposed the bill due to concerns with the language and scope. However, amendments developed through stakeholder engagement addressed key issues, mitigating our concerns and leading us to a neutral position. The bill now moves to the Senate.

 

Moratorium on Water System Privatization (H.B. 1964; Burgos)

The House Appropriations Committee voted 24-13 to advance House Bill 1964 on Monday.

This legislation would impose a statewide moratorium on the privatization of public water and wastewater systems, repeal the fair market valuation provisions established under Act 12 of 2016, and create a Water Utility Reform Working Group to study future policy changes.

The bill restricts private water companies’ ability to invest in and acquire municipal systems, discourages needed infrastructure investment, and creates regulatory uncertainty.

By removing a voluntary, PUC-regulated pathway for public-private partnerships, HB 1964 could limit solutions that help ensure reliable, compliant water service for communities and businesses across Pennsylvania.

We opposed this legislation, which now advances to the full House of Representatives.

Workers’ Compensation Benefits (H.B. 2049; Brennan)

The House Labor & Industry Committee voted 14-12 to advance House Bill 2049 last Monday.

This legislation would increase the workers’ compensation program’s “burial benefit” which is provided in the tragic event an individual passes away as the result of a work injury.  The benefit would increase from $7,000 to $20,000 and provide for annual increases.

The burial benefit was last increased in 2018, and while another increase may be warranted, the increases proposed in this bill would put Pennsylvania at the extreme high end compared to other states.

We recommended that this legislation be amended (CLICK HERE for our memo). It now advances to the full House of Representatives.

 

Increasing Housing Opportunities (H.B. 2186; Inglis / H.B. 2109; Khan)

The House Housing & Community Development Committee advanced two bills aimed at increasing housing opportunities for Pennsylvanians last Monday.

House Bill 2186 would remove barriers to the creation of accessory dwelling units by updating local zoning rules and streamlining approvals so homeowners can more easily add in-law suites or garage apartments. The committee advanced H.B. 2186 by a vote of 19-7.

House Bill 2109, also known as the “Golden Girls Act,” allows greater flexibility for shared housing by permitting unrelated adults, particularly older individuals, to live together under local occupancy and zoning regulations. The committee advanced H.B. 2109 by a vote of 19-7.

Pennsylvania’s housing shortage is making it harder for employers to attract and retain workers, particularly as affordability challenges limit options near job centers. By expanding attainable housing through H.B. 2186 and H.B. 2109, these reforms help strengthen the workforce pipeline and support business growth.

We supported both proposals (CLICK HERE for our memo), which now advance to the full House of Representatives.