Last Week in the Legislature – 6/17/26

With state budget negotiations still underway, the House of Representatives and Senate were in session in Harrisburg last week, meanwhile advancing proposals related to taxes, environmental and healthcare regulations, labor policy, infrastructure investment, and Pennsylvania’s legal procedure.

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

Cannabis Control Board (S.B. 49; Laughlin)

The Senate voted down Senate Bill 49 last Tuesday by a vote of 23-27; though they then voted 29-21 on a Motion to Reconsider, which keeps the bill alive.

Senate Bill 49 would establish the Pennsylvania Cannabis Control Board, transferring oversight and regulatory authority over Pennsylvania’s medical marijuana law from the state Department of Health to this new entity.

Years following medical marijuana legalization, employers continue to report significant confusion with the law and a lack of clarity that is complicating their ability to maintain a safe work environment, particularly in safety-sensitive industries. We are hopeful that a new regulatory authority will focus on workplace safety and either promulgate regulations or implement legislation to address employer concerns.

The PA Chamber supported this legislation (CLICK HERE for our memo), which the Senate may consider again in the future.

 

Banning PFAS (H.B. 2145; Scott)

The House voted 188-13 to pass House Bill 2145 last Monday.

House Bill 2145 would prohibit the manufacture and sale of several categories of consumer products containing intentionally added PFAS.

This legislation adopts an expansive definition of PFAS and applies a blanket prohibition across diverse chemistries, which could severely disrupt manufacturing and distribution of a wide range of products, going well beyond any reasonable public health efforts.  The bill also includes reporting, notification, and certification requirements that would create significant compliance challenges throughout complex supply chains.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now moves to the Senate for consideration.

 

Digital Advertising Tax (H.B. 1678; Fiedler)

The House voted 139-63 to pass House Bill 1678 last Tuesday.

House Bill 1678 would apply the state’s 5 percent gross receipts tax to digital advertisements purchased in Pennsylvania. The bill was amended to divert revenue from the tax into property tax relief for low-income seniors.

The digital advertising tax will raise costs for Pennsylvania businesses who purchase digital advertising to market their goods or services.  The tax violates sound tax policy by taxing a business input.  Under Pennsylvania’s market sourcing rules, revenue derived from the sale of digital advertising is already subject to the Corporate Net Income Tax (CNIT). Lastly, if enacted it will be subject to costly litigation as it violates the federal Internet Tax Freedom Act.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now moves to the Senate.

Limiting Business Community Participation in the Political Process (H.B. 497; Webster)

The House voted 146-56 to pass House Bill 497 last Tuesday.

House Bill 497 further restricts a business’s ability to participate in the electoral process.

This legislation seeks to limit foreign influence in Pennsylvania elections; however, the overly broad definition of “foreign-influenced corporation” will impact organizations with deep roots in Pennsylvania that represent large segments of the Pennsylvania workforce.  This legislation would prohibit “foreign-influenced corporations” as defined in the legislation from contributing to independent expenditure committees and administering affiliated PACs funded by employee contributions.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now is moved to the Senate.

Modernizing the Highway Transfer Turnback Program (H.B. 2266; Shusterman)

The House voted 201-0 to unanimously pass House Bill 2266 last Monday.

House Bill 2266 modernizes the Highway Transfer “Turnback” Program by updating maintenance payments to municipalities and incorporating inflationary adjustments. These changes improve fairness and predictability for local governments that have assumed responsibility for former state roads. The bill encourages greater municipal participation in the program by better aligning funding with actual maintenance costs.

Local governments are best positioned to manage roads that primarily serve local travel, business access, and development activity. Encouraging municipalities to assume ownership of appropriate roadways supports more responsive maintenance and better integration with local land use and economic planning. Incentivizing local stewardship of roadways supports efficient asset management and allows state transportation resources to remain focused on major corridors critical to statewide commerce.

The PA Chamber supported this legislation (CLICK HERE for our memo), which now moves to the Senate.

Empowering Local P3 Opportunities (H.B. 2469; Powell)

The House voted 201-0 to unanimously pass House Bill 2469 last Monday.

House Bill 2469 clarifies the ability of counties and major municipalities to utilize public private partnerships to deliver transportation projects. The bill builds on Pennsylvania’s existing P3 framework by allowing local governments to collaborate with the private sector on project design, financing, construction, and maintenance. It preserves the current review structure while expanding local flexibility.

Public private partnerships encourage investment, innovation, and efficiency in infrastructure delivery. Expanding P3 opportunities creates new avenues for business participation while accelerating project timelines and improving infrastructure quality. Reliable, modern transportation systems support economic growth, workforce access, and long-term competitiveness across the Commonwealth.

The PA Chamber supported this legislation (CLICK HERE for our memo), which now moves to the Senate.

Paid Leave Entitlement Program (S.B. 906; Robinson)

The Senate Labor and Industry Committee voted 9-2 to advance Senate Bill 906 last Wednesday.

Senate Bill 906 would assess a new multi-billion dollar payroll tax on Pennsylvanians to pay wages for individuals to take leave of as much as 20 weeks per year.

This legislation imposes direct and significant costs on Pennsylvanians; as well as additional indirect costs and administrative challenges on all employers, including small businesses, who would be prohibited from maintaining their own leave policies that benefit their people while accommodating their own unique staffing requirements

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now advances to the Senate floor.

Additional Regulations on Power Plants (H.B. 1567; Mullins)

The House Environmental and Natural Resource Protection Committee voted 14-12 along party lines to advance House Bill 1567 last Monday.

House Bill 1567 would require community benefits agreements for power plants.

This bill adds costs and an additional and superfluous layer of regulations on the approval of power plants which is expected to slow approvals and exacerbate projected energy generation shortfalls.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now advances to the full House.

Overregulating Natural Gas Operations (H.B. 84; Vitali)

The House Environmental and Natural Resource Protection Committee voted 14-12 to advance House Bill 84 last Monday.

House Bill 84 seeks to regulate wastewater from natural gas extraction and vehicles used to transport wastewater.

This legislation imposes new and unnecessary regulations on the natural gas industry related to the wastewater produced during the extraction of natural gas and the vehicles used to transport wastewater from natural gas wells.  These operations are already regulated, including by the Solid Waste Management Act, and adding additional layers of regulations that serve a similar purpose but differ in detail and application will create unnecessary and challenging compliance complications.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now moves to the House floor.

Prohibiting Noncompete Agreements in Broadcasting (H.B. 2558; Waxman)

The House Labor and Industry Committee voted 14-12 along party lines to advance House Bill 2558 last Tuesday.

House Bill 2558 would prohibit noncompete agreements in the broadcasting industry.

This bill provides for legislative intervention between two private parties voluntarily agreeing to a noncompete agreement. Restrictive covenants may be particularly relevant for the broadcasting industry, where employers often invest considerably to recruit employees and provide the operational support, marketing and base of public recognition usually necessary for broadcasting professionals to establish their career.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now advances to the full House.

Capping ROE and Discouraging Energy Infrastructure Development (H.B. 2224; Fiedler)

The House Consumer and Protection Committee voted 17-9 to advance House Bill 2224 last Tuesday.

House Bill 2224 would statutorily cap return on equity (ROE) for all Pennsylvania utility companies.

This legislation would discourage energy infrastructure investment in Pennsylvania, reduce employment, and ultimately raise costs on residential, commercial and industrial ratepayers.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now moves to the House floor.

Arguing Non-Economic Damages at Trial (H.B. 1913; Brennan)

The House Judiciary Committee voted 14-12 along party lines to advance House Bill 1913 last Monday.

House Bill 1913 would allow attorneys to suggest and argue for specific dollar amounts and mathematical formulas for non-economic damages during closing arguments in civil trials.  This would divert from longstanding practice in Pennsylvania that leaves the evaluation of non-economic damages to juries, without unfair or arbitrary influence.

Pennsylvania’s legal climate is already in crisis with growing examples of nuclear verdicts, rising litigation costs, rampant venue shopping, liability expansion, and soaring medical malpractice insurance costs.  HB 1913 seeks to give plaintiffs’ attorneys another tool to push awards even higher, while placing the defense into a no-win situation – arguing over specific damages while maintaining their client’s innocence.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now advances to the full House.

Removing Liability Wavers for Recreational Facilities (H.B. 2462; Brennan)

The House Judiciary Committee voted 15-11 to advance House Bill 2462 last Monday.

House Bill 2462 would invalidate liability waivers and assumption-of-risk agreements whenever a plaintiff alleges that a recreational facility lacked certain safety equipment or properly trained personnel.

The bill expands litigation exposure by creating additional avenues to challenge otherwise valid liability waivers, which have long been recognized by Pennsylvania courts. The bill creates new broad and subjective standards relating to the use of items such as surveillance cameras, AEDs, first-aid-kits, and various categories of trained personnel.  The result of this legislation will be recreational facilities facing greater litigation risk, increased insurance premiums, and higher operational costs, which will ultimately make it less affordable for Pennsylvania consumers and families to visit recreational facilities.

The PA Chamber opposed this legislation (CLICK HERE for our memo), which now moves to the House floor.

Surcharge Disclosure Compliance Concerns (H.B. 1780, Guzman)

The House Consumer Protection, Technology, and Utilities Committee voted unanimously (26-0) to advance H.B. 1780 last Tuesday.

House Bill 1780 aims to promote transparency in credit card surcharge disclosure. While well-intentioned, the PA Chamber wrote a memo to the committee respectfully asking members to oppose the legislation in its current form  (CLICK HERE for our memo) because it does not reflect how credit card processing systems function in practice – with varying fees based on types of cards, payment methods, and other factors – and would be difficult for many businesses to comply with, particularly small and mid-sized businesses.

PA Common Cents Act (H.B. 2388; Davidson)

The House Commerce Committee voted 26-0 to unanimously advance House Bill 2388 last Monday.

House Bill 2388, also known as the “Pennsylvania Common Cents Act” intended to address reduced coin availability and an ongoing penny shortage that is making it increasingly difficult for businesses and other entities to consistently provide exact change. The bill as amended outlines cash rounding guidelines to the nearest nickel in situations where exact change is unavailable due to the national penny shortage.

The bill as amended sets forth clear, balanced rounding guidelines that apply only to cash transactions when exact change cannot be provided. Totals ending in 1¢, 2¢, 6¢, or 7¢ are rounded down, while totals ending in 3¢, 4¢, 8¢, or 9¢ are rounded up, ensuring an even-handed, predictable approach over time for both consumers and merchants. These provisions are narrowly tailored, do not apply to electronic payments, and are not used when exact change is available. Importantly, the amendment maintains current tax treatment by requiring all taxes to be calculated prior to rounding and includes reasonable protection for when rounding occurs.

The PA Chamber supported this legislation (CLICK HERE for our memo), which now advances to the full House.

Expanding Eligibility for County Bridge Funding (H.B. 2214; Bellmon)

The House Transportation Committee voted 14-12 to advance House Bill 2214 last Monday.

House Bill 2214 provides clarification to the distribution of transportation funding for county and municipal bridge infrastructure by ensuring that all municipalities and counties are clearly eligible to access and use these funds. The bill aligns existing funding with current infrastructure responsibilities and provides flexibility to address bridge needs across local systems.

The legislation provides reasonable clarification for deployment of county bridge funding. Importantly, the legislation maintains funding stability by ensuring no county receives less than prior-year levels and authorizes additional Motor License Fund transfers, as needed, to preserve those allocations. This approach promotes consistency and predictability while supporting critical infrastructure investment. Well-maintained bridges are essential to efficient supply chains, workforce mobility, and access to jobs, markets, and services.

The PA Chamber supported this legislation (CLICK HERE for our memo), which now advances to the full House.

Flexible Use of County Bridge Funding (H.B. 2437; Davidson)

The House Transportation Committee voted 26-0 to unanimously advance House Bill 2437 last Monday.

House Bill 2437 provides a commonsense update to existing bridge funding, allowing counties to reinvest unused dollars from completed Marcellus Legacy Fund bridge projects into other eligible bridge needs within the county. Under current law, these funds are restricted to a narrow category of at-risk deteriorated bridges, which can leave remaining balances unused once those specific projects are complete. This legislation enables counties to apply overage dollars more broadly across bridge maintenance and repair needs, consistent with federal and state requirements.

This legislation ensures that available resources can be fully utilized to address ongoing infrastructure needs without creating new funding obligations or shifting existing allocations. Providing counties with this flexibility supports more efficient project delivery and helps maintain critical transportation infrastructure across the Commonwealth. Well-maintained bridges are essential to economic activity, supply chain reliability, and access to jobs, markets, and services.

The PA Chamber supported this legislation (CLICK HERE for our memo), which now moves to the Houe floor.