Legislative Action

The PA House and Senate resumed session this past month, moving a number of legislative "vehicle" bills a step or two closer to the finish line, but when the leaders could not reach agreement on a final spending plan for the 2025-26 fiscal year, which begins on July 1, the bodies were sent home for the holiday weekend. The House will return on July 6, hopefully to finish the annual budget process and recess for the summer, while the Senate has not announced a return date. As was the case last year, differences over big ticket items such as court-mandated school funding, transportation and infrastructure construction projects, and of course, human services, as well as what to do about legalizing and regulating "Games of Skill" and adult use cannabis to raise additional revenue, have divided the General Assembly, even beyond the majorities in the respective chambers.

It has been several years since the Pennsylvania Legislature opened up the state's mechanics' lien law. The law was originally enacted in 1963 and has been amended only 3 times since then. The most significant change was the 2007 amendment that expanded the right to lien to second-tier subcontractors and made liens unwaivable. Amendments in 2009 and 2014 exempted certain residential properties and addressed construction mortgage issues. Now, a new bill is moving in the Pennsylvania House even though it addresses a very narrow issue.

House Bill 1319 creates a lien right for companies that rent equipment for a construction project. According to the sponsor's explanatory memo, "a recent Pennsylvania Superior Court case. In R.A. Greig Equipment Company v. Mark Erie Hospitality, LLC, the Superior Court considered the question of whether a heavy equipment rental company was entitled to a mechanics' lien against the defendant's real property after the defendant was alleged to have damaged the equipment it had rented and failed to pay rental fees for the next 19 months. In its decision, the court ruled against the rental company, finding that construction equipment and unpaid rental fees did not qualify as 'materials' under the statute because the equipment and the missed rental payments were not literally built into the completed structure, even though the definition of 'materials' includes equipment."

The bill passed the House Judiciary Committee on June 17 and has been in the House Appropriations Committee since July 1. While the bill does not propose a significant change to the law, it could be amended further at any point in the legislative process. Our lobbyists are closely monitoring the bill in the event that other issues are put into the mix.

HB276 RE: Employee Misclassification Working Group (by Rep. David M. Delloso, et al)

The Employee Misclassification Working Group Act provides for interagency cooperation regarding employee misclassification; and establishes the Employee Misclassification Working Group to coordinate enforcement strategies involving state agencies and employee misclassification, provides for working group representatives. Allows the Department of Revenue to provide state tax information to the Department of Labor and Industry’s Office of Unemployment Compensation Tax Services, and other offices to assess or investigate employee misclassification. Directs state agency business applications to include and use federal employer identification numbers. Directs the working group to meet at least quarterly.

Removed from table, 6/9/2025
Read second time, and re-committed to House Appropriations Committee, 6/10/2025
Re-reported as committed from House Appropriations Committee, read third time, and passed House, 6/11/2025
Referred to Senate Labor and Industry Committee, 6/18/2025 

SB72 RE: Construction Worker Misclassification Act (by Sen. John I. Kane, et al)

Amends the Construction Workplace Misclassification Act, further providing for definitions, for improper classification of employees and for criminal penalties; providing for private right of action; and further providing for administrative penalties, for retaliation for action prohibited, for availability of information, for use of penalty funds and for funding. Provides definitions for “debar” and “public work.” Permits the Secretary of Labor and Industry to impose penalties and refer matters to the Attorney General for criminal investigations. Provides updates to penalties for employers who knowingly violate section 4(a). Asserts that an employee who has been misclassified or has been discharged, threatened or has otherwise suffered retaliation, discrimination or other adverse action as a result of participating in an investigation or reporting a violation may bring a private right of action in a court of common pleas. Mandates that the legal action must be brought within three years from the date that the employee knew of the violation, retaliation or discrimination. Provides for relief if an employee prevails in an action. Permits the secretary to order a financial audit or a tax audit of individuals who violate the act. Specifies that the secretary must debar an employer who knowingly violates the act. Prohibits retaliation against employees who participate in an investigation, hearing or inquiry by the secretary or any governmental authority; or report or make a complaint to a construction industry employer or any governmental authority. Directs every employer subject to the act to keep a summary of the act and any regulations applicable to the employer posted in a conspicuous place where employees can read it in all places of business. Mandates that any sum collected as a penalty, recovered attorney fees or costs associated with investigation and enforcement actions be deposited into a restricted revenue account in the General Fund to be used for future enforcement. Permits the Department of Labor and Industry, the Office of Attorney General or a district attorney’s office to recover attorney fees and associated costs.

Reported as committed from Senate Labor and Industry Committee, and read first time, 6/9/2025
Discussed during public hearing of Senate Democratic Policy, 6/12/2025 

HB1603 RE: Concrete Inspection Standards (by Rep. Kyle Mullins, et al)

The Reliable Acceptance Testing of Concrete Act provides for requirements for sampling and initial curing of concrete samples on commercial construction projects; and imposes penalties. Provides definitions. Requires contractors and owner’s testing agencies to provide for the casting of concrete test specimens for the purpose of acceptance of concrete and for the initial curing of concrete test specimens. Outlines the duties of the owner's testing agencies and contractors. Provides for the initial curing of test specimen guidelines and technician requirements. Allows the Department of Labor and Industry to enforce the act. Outlines the penalties per offense.
Referred to House Housing and Community Development Committee, 6/16/2025

HR271 RE: Indoor Air Quality Study Resolution (by Rep. Jessica Benham, et al) A Resolution directing the Joint State Government Commission to establish an advisory committee and conduct a comprehensive study regarding the indoor air quality for seniors and children in this commonwealth.
Referred to House Health Committee, 6/25/2025

SB109 RE: Lake Erie Groin Fee (by Sen. Dan Laughlin, et al) Amends the Dam Safety and Encroachments Act, defining “groin structure” and establishing that the department may charge a license fee not to exceed $250 for a person to construct, repair, replace, operate, maintain or remove a groin structure at the licensed premises.
Re-reported as committed from Senate Appropriations Committee, read third time, and passed Senate, 6/10/2025
Referred to House Environmental and Natural Resource Protection Committee, 6/11/2025
Reported as committed from House Environmental and Natural Resource Protection Committee, read first time, and laid on the table, 6/23/2025
Removed from table, 6/24/2025
Read second time, and re-referred to House Appropriations Committee, 6/25/2025
Re-reported as committed from House Appropriations Committee, read third time, and passed House, 6/26/2025
Signed in Senate, 6/26/2025
Signed in House, 6/30/2025
Approved by the Governor , 6/30/2025 Act No. 19 of 2025

HB1239 RE: Homeowners Associations: Solar Access (by Rep. Liz Hanbidge, et al)

Amends Title 68 (Real and Personal Property), in general provisions relating to condominiums, further providing for definitions; in management of the condominium, further providing for powers of unit owners' association; in general provisions relating to planned communities, further providing for definitions; and, in management of planned communities, further providing for power of unit owners' association. Provides definitions. Prohibits the unit owners’ association from restricting the installation of solar energy systems on a detached roof. Specifies the purposes for which the association may provide reasonable regulation of solar energy systems.
Reported as amended from House Energy Committee, read first time, and re-committed to House Rules Committee, 6/25/2025

HB1532 RE: Expanding the Use and Scope of Specific Plans (by Rep. Robert Freeman, et al)

Amends the Pennsylvania Municipalities Planning Code, in general provisions, further providing for definitions; in comprehensive plan, providing for municipal specific plans; and, in intergovernmental cooperative planning and implementation agreements, further providing for specific plans. Adds a definition for “sketch plan” and replaces language under the definition of “specific plan” to read a detailed plan for development of an area covered by a municipal or multi-municipal comprehensive plan under section 308 or 1106. Provides for municipal-specific plans, authorizing a municipality to adopt a specific plan for the systematic implementation of any portion of the plan, and allows for fees. Adds intensity, accommodation of expected new housing, dwelling types and housing densities for households of various income levels to plan content requirements. Requires a specific plan to be adopted or amended using the same procedures under this article or Article 3. Establishes pre-application conferences for applicants for subdivision or land development approval. Asserts that a specific plan shall include certain enumerated provisions, rather than making such provisions optional. Removes the reference to “housing densities for households of various income levels.” Adds language referencing the availability of affordable or below-market housing to the standards relating to residential uses within specific plans. Makes technical adjustments.
Reported as amended from House Local Government Committee, read first time, and re-committed to House Rules Committee, 6/11/2025
Re-reported as committed from House Rules Committee, read second time, and re-committed to House Appropriations Committee, 6/30/2025
Re-reported as committed from House Appropriations Committee, read third time, and passed House. 7/1/2025 (102-100) 

HB1685 RE: Allowing Municipalities Discretion in Remediating Asbestos in Demolition of Blighted Properties (by Rep. Andrew Kuzma, et al)

Amends the Local Health Administration Law, further providing for powers and duties of county departments of health and providing for exception for abatement of asbestos or other similar material. Stipulates that a rule, regulation, standard or penalty implemented by a county department of health regarding the abatement of asbestos or other similar material in a building or structure shall not be applicable to a municipality within the county whose governing body chooses to opt out of the rule, regulation or standard.
Referred to House Local Government Committee, 7/1/2025

HB1319 RE: Revising the Mechanics’ Lien Law of 1963 (by Rep. Patrick J. Harkins, et al)

Amends the Mechanics' Lien Law, in definitions, further providing for the definition of “material” to include rented equipment reasonably necessary for the construction of or incorporated into the improvement.
Reported as committed from House Judiciary Committee, read first time, and re-committed to House Rules Committee, 6/17/2025
Re-reported as committed from House Rules Committee, read second time, and re-committed to House Appropriations Committee, 7/1/2025

HB1689 RE: SPEED Permitting Expansion (by Rep. Michael Stender, et al)

Expands the types of permits covered within the SPEED program to all permits issued by DEP.
Introduced and referred to House Local Government Committee, 7/1/2025

HB846 RE: Prohibiting Split Rates & Providing for Custom Fabrication on Public Works Projects (by Rep. Jason Dawkins, et al)

Amends the Pennsylvania Prevailing Wage Act, further providing for definitions, for specifications, for prevailing wage and for duty of secretary. Provides and revises definitions. Provides specifications for workmen engaged in custom fabrication for public work. Requires workmen to be paid an appropriate rate for their craft and prohibits the payment of multiple rates for one project. Asserts that workmen engaged in custom fabrication for a public works project must be paid the prevailing minimum wage rate for the applicable trade or craft in the locality in which the public works project is located. Effective in 60 days.
Removed from table, 6/3/2025
Read second time, and rereferred to House Appropriations Committees, 6/4/2025
Re-reported as committed from House Appropriations Committee, read third time, and passed House, 6/9/2025 (126-76)
Referred to Senate Labor and Industry Committee, 6/18/2025 

HB1018 RE: Rebuilding PA with American-made Products (by Rep. Frank Burns, et al)

Amends the Steel Products Procurement Act, further providing for contracts for public works to use or supply steel products and for restrictions on payments by public agencies under certain circumstances. Requires anyone initiating a construction or maintenance project using public funding or tax incentives must use steel products as herein defined if any steel products are used or supplied in the project. Prohibits a public agency from authorizing or funding anyone using public funding or tax incentives when unidentified steel products are used. Requires the individual to provide documentation the steel was made in the United States as well as a certification which satisfies the public agency that such person has fully complied with the provision required under section 4. Mandates that any faulty payments made to the individual from a public agency for violating the provisions of this section will be recoverable directly from the contractor or supplier who did not comply with section 4 by either such public agency or the Attorney General of Pennsylvania.
Removed from table, 6/3/2025
Read second time, and recommitted to House Appropriations Committee, 6/4/2025
Re-reported as committed from House Appropriations Committee, read third time, and passed House, 6/9/2025
Referred to Senate State Government Committee, 6/18/2025 

HB1601 RE: REINS Act-Amends the Regulatory Review Act (by Rep. Dallas Kephart, et al)

Amends the Regulatory Review Act, further providing for definitions, for proposed regulations and procedures for review and for final-form regulations and final-omitted regulations and procedures for review; providing for regulations deemed withdrawn; further providing for procedures for subsequent review of disapproved final-form or final-omitted regulations; and providing for concurrent resolution required for economically significant regulations. Adds definitions for “economically significant regulation” and “general permit.” Adds that in case of a citation of State Statutory Authority, the citation must be to a provision of the statute that explicitly states that the agency may promulgate regulations for the specific purpose. Requires that estimates are to be prepared by the Independent Fiscal Office and requires public hearings. Outlines time frame guidelines and approval procedures. Provides for withdrawal regulation procedures and timelines. Requires concurrent resolutions for economically significant regulations, outlining requirements and guidelines.
Referred to House Intergovernmental Affairs and Operations Committee, 6/16/2025

SB444 RE: Automatic Three-Year Review of Economically Significant Regulations (Sen. Michele Brooks, et al)

Amends the Regulatory Review Act, further providing for definitions and for existing regulations. Adds a definition for “economically significant regulation.” An “economically significant regulation” is defined as one that has a fiscal impact on the Commonwealth, its political subdivisions, or the private sector that exceeds $1 million annually. Establishes reporting requirements after an economically significant regulation has been in effect for three years.
Reported as committed from Senate Intergovernmental Operations Committee, and read first time, 6/4/2025
Read second time and re-referred to Senate Appropriations Committee, 6/9/2025
Re-reported as committed from Senate Appropriations Committee, read third time, and passed Senate, 6/10/2025
Referred to House Intergovernmental Affairs and Operations Committee, 6/11/2025

HB1561. RE: City of the First Class Residential High-Rise Fire Sprinkler Retrofit Tax Relief Act (by Rep. Anthony A. Bellmon, et al)

Provides for a tax credit for retrofitting residential high-rise structures with an automatic fire sprinkler system and associated monitoring or detection devices. Stipulates that the Office of the Mayor of a city of the first class may award a tax credit to the owner of a residential high-rise structure for tax years beginning after December 31, 2025. Asserts that the tax credit be for investment in retrofitting residential high-rise structures with an automatic fire sprinkler system and associated monitoring or detection devices. Stipulates that the amount of the tax credit shall be equal to the amount expended by the owner to install or improve an existing automatic fire sprinkler system and associated monitoring or detection devices or 100% of the owner's income tax liability, whichever is less. Provides for administration.
Referred to House Finance Committee, 6/5/2025

HB1556 RE: Advanced Clean Manufacturing Tax Credit (by Rep. Elizabeth Fiedler, et al)

Amends the Tax Reform Code, in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions. Adds definitions. Establishes the qualified advanced clean manufacturing tax credit equal to 30% of the qualified production costs for the taxable year with respect to any qualified advanced clean manufacturing project of the taxpayer. Authorizes the tax credit and limits it to not exceeding $10 million per taxable year. Requires the Secretary of Environmental Protection, in consultation with the Department of Community and Economic Development and the Department of Environmental Protection, to establish a qualified advanced clean manufacturing tax credit program. Outlines application and annual cap requirements. Provides for certification, applications, period of issuance requirements and outlines criteria guidelines. Provides for carry forward, recapture and redistribution. Establishes public disclosure requirements and adds an expiration of the credits beginning after December 31, 2035, unless reauthorized by the General Assembly. Includes an advanced clean manufacturing project facility as defined in section 1790-L in the definition of “qualified project facility” and a qualified taxpayer as defined in section 1790-L in the definition of “qualified tax credit recipient.”
Referred to House Finance Committee, 6/17/2025

HB1610 RE: Combined Reporting (by Rep. Liz Fiedler, et al)

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in personal income tax, further providing for definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, further providing for definitions and providing for application of tax credits or tax benefits to a unitary business; providing for working Pennsylvanians tax credit; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.
Referred to House Finance Committee, 6/12/2025
Reported as committed from House Finance Committee, read first time, and re-committed to House Rules Committee, 6/17/2025
Re-reported as committed from House Rules Committee, amended on House floor, read second time, and re-committed to House Appropriations Committee, 6/24/2025
Re-reported as committed  from House Appropriations Committee, read third time, and passed House, 6/25/2025 (104-99)
Referred to Senate Finance Committee, 6/25/2025 

HB1668 RE: Allowing Philadelphia to Establish a Tax Abatement for Fire Sprinkler Systems - Fiscal Code Version to HB1561 (by Rep. Anthony A. Bellmon, et al)

Amends the Fiscal Code, in Water Assistance Program, providing for retrofitting residential high-rise buildings with automatic fire sprinkler systems. Provides that a city of the first class shall have the authority to determine the participation in a property tax abatement program or real property tax relief program to incentivize investment in retrofitting residential high-rise buildings with automatic fire sprinkler systems and associated monitoring or detection devices.
Introduced and referred to House Finance Committee, 6/27/2025
Reported as committed from House Finance Committee, read first time, and re-committed to House Rules Committee, 6/30/2025

 SB527 RE: Sterling Act Reimbursement

Amends the Local Tax Enabling Act, further providing for title of act; providing for local taxes in cities of the first class, for prohibition of tax on certain individuals and for reimbursement of taxes; and repealing the Sterling Act and Section 324 of the Taxpayer Relief Act. Authorizes citizens of the first class to levy, assess and collect taxes and prohibits taxes on salaries, wages, commissions or other compensation on certain individuals, including nonresidents employed by a place of business located in a city of the first class. Adds to the duties of the State Treasurer to deduct any taxes imposed by the city on the salary, wage or other compensation paid by the state to the officer or employee and make a return on a form furnished by or obtainable from the revenue commissioner of the city. Authorizes a city of the first class to create offices necessary for the collection of taxes. Provides for penalties and enforcement of nonpayment of taxes and allows for reimbursements. Adds that the taxes shall be credited by the school district of the taxpayer’s residence at an amount no greater than the tax on salaries, wages, commissions or other compensations imposed by the school district. Requires the Department of Education, in consultation with the Department of Community and Economic Development, to promulgate temporary regulation and outlines content requirements. Section 6 is effective immediately.
Reported as committed from Senate Finance Committee, and read first time, 6/10/2025
Read second time, and re-referred to Senate Appropriations Committee, 6/11/2025
Re-reported as committed from Senate Appropriations Committee, read third time, and passed Senate, 6/23/2025 (29-21)
Referred to House Finance Committee, 6/24/2025 

HB1608 RE: Design Build Best Value Procurement (by Rep. Ed Neilson, et al)

Amends Title 74 (Transportation), in transportation infrastructure, providing for design build best value. Defines “agency,” “alternative technical concept,” “commission,” “commissioners,” “department,” “design build best value,” “offeror,” “project,” “request for proposals,” “request for qualifications,” “responsible offeror,” “responsive proposal,” “secretary,” “shortlisted offeror” and “statement of qualifications.” Provides for a design build best value process with a value score, conditions for its use and limits for the amount of projects procured per agency. Establishes the need for public notice of a determination when using design build best value practices and the process for one-step or two-step requests for proposals. Provides for the receipt of statements of qualifications and requests for proposals, and how to submit them. Provides for a preproposal conference to be scheduled after issuance of a request for qualifications in a two-step procurement and a request for proposal in a one-step procurement. Establishes a process for the request for technical and price proposals in a one-step procurement. Provides for a process and the statement of qualifications for a two-step procurement for an agency. Provides for technical and price proposal processes in a two-step procurement. Provides for alternative technical concepts (ATCs) and an approval process of an ATC for an agency. Establishes a record of requests for ATCs and the use of intellectual property. Provides for payment from an agency to an unsuccessful responsible offeror for ATCs who are not receiving a stipend under subsection o. Provides for stipends on a project-by-project basis in a one-step and two-step procurement. Establishes due dates for technical and price proposals. Provides that the most advantageous proposal will be selected by the agency for negotiation. Provides an ATC of an unsuccessful offeror can be utilized by the agency after a payment execution. Establishes that a proposal validity period is established in the proposal. Provides for an evaluation committee of the proposals with at least five employees determined by the agency and an individual employed by the offeror within the preceding five years cannot participate in proposal evaluations. Provides for the applicability of other laws. Establishes the limitations on powers and duties of an agency that may not be exercised beginning eight years after the effective date of the section and an exception to contracts procured prior to eight years after the section’s effective date
Referred to House Transportation Committee, 6/16/2025

SB894 RE: Clarifying Independent Contractor Classification (by Sen. Dawn Keefer, et al)

Amends the Workers’ Compensation Act, in liability and compensation, providing for registration of status as independent contractor. Allows a person to file a registration with the department regarding the status of an individual who is classified for federal income tax purposes as an independent contractor of the person. Establishes registration content requirements. Provides for registration revocation, outlining the requirements. Adds definitions for “independent contractor” and “person.”
Referred to Senate Labor and Industry Committee, 6/24/2025

HR245 RE: Recognizing the week of June 9th through 13th, 2025 as “Union Organizing Week” in PA (by Rep. Dan L. Miller, et al) A Resolution designating the week of June 9 through 13, 2025, as "Union Organizing Week" in Pennsylvania, in honor of those workers who have fought for their right to organize and bargain collectively at their workplace.
Reported as committed from House Labor and Industry Committee, 6/4/2025
Adopted, 6/11/2025

SB315 RE: Career and Technical Education Equipment Grant Funding Fix (by Sen. Lynda Schlegel Culver, et al)

Amends the Public School Code, in career and technical education, further providing for career and technical education equipment grants. Requires the Department of Education (PDE) to use data for the calculations under this section based on the most recent years for which data is available, as determined by PDE, and shall fix the data as of the first day of June preceding the school year in which the allocation occurs. Stipulates that if, after the data based on the first day of June is found by PDE to be incorrect, PDE shall revise the calculations accordingly.
Reported as committed from House Education Committee, read first time, laid on the table, and removed from table, 6/24/2025
Read second time, and re-referred to House Appropriations Committee, 6/25/2025