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Harrisburg budget season: Lawmakers seek a Big Tech tax, housing deregulation

Dozens of advocates met in the Harrisburg Capitol's east wing on June 1 before marching throughout the building. The coalition goes by Pennsylvanians for Accountability from Yass, Billionaires and Corporations (PAYBAC).
Tom Riese
/
90.5 WESA
Dozens of advocates met in the Harrisburg Capitol's east wing on June 1 before marching throughout the building. The coalition goes by Pennsylvanians for Accountability from Yass, Billionaires and Corporations (PAYBAC).

Pennsylvania's state legislature started June with an eventful session, the first week in a slew of voting days ahead of a July 1 state budget deadline. While lawmakers are statutorily required to deliver a fiscal plan by the end of the month, they've missed that deadline in eight of the last 12 years.

And before hammering out budget bills, the state House and Senate deliberated over dozens of other measures that may become law before legislators leave Harrisburg for summer break.

Among the most notable moves this week was a House vote to pass a school-day cellphone ban, though the measure still needs Senate approval before making it to Shapiro's desk. Also grabbing headlines: A Senate Republican hopes to eliminate satellite voting sites and ballot drop boxes.

Here's what else lawmakers got done during the first week of budget season.

Advanced out of House committee: tax on digital advertisements

If you use social media, you've probably been flooded with ads each time you log on.

Earlier this week, dozens of advocates marched through the Capitol halls to petition lawmakers to levy a tax on those ads, so that the state can more easily fund social services, education and public transit.

The rallygoers said that charging a 5-percent gross receipts tax on digital ad revenue could raise upwards of $500 million each year in Pennsylvania; they estimate advertisers spend nearly $12 billion to get ads in front of Keystone State viewers.

Some Democrats have made the case that a new revenue source could ease the state's multi-billion dollar structural deficit.

Speaking at a Monday rally on the Capitol steps, West Mifflin House Democrat John Inglis said the tax would primarily impact "the mega-corporations and the billionaires behind them raking in record profits."

"If Big Tech wants to spend record amounts on annoying-ass ads that pervade every part of our lives, then we should be able to recoup the taxes they should be paying to fund public services that everyone relies on," Inglis said.

Days later brought some of the very progress that activists asked for: House Bill 1678 advanced out of the Finance committee along party lines, 14-12. The measure is sponsored by Inglis, Pittsburgh's Aerion Abney with Philly's Liz Fiedler, and is cosigned by more than 50 other Democrats.

Though the digital ad tax may likely pass the Democrat-controlled House, it may not do well in the GOP-led Senate.

The committee's debate featured plenty of Republican pushback. Westmoreland County Republican Leslie Rossi said small businesses, not Big Tech, could struggle to pay the tax.

"In rural areas such as my district, small business needs to advertise to survive, and small business is the lifeblood of many of our communities," Rossi said. "This added tax would certainly have an impact, resulting in lower profits for small business, and the consumer would end up paying higher prices."

GOP Finance chair Keith Greiner said the bill reflected an "anti-business attitude" among Democrats.

"We need to be promoting business and supporting big business and small business, not working against them," Greiner said. "You're going after corporations because they're big or you think they're profitable — they are paying income tax here in Pennsylvania already."

Passed the House: relaxing zoning for 'granny flats'

Some communities in the state forbid accessory dwelling units, sometimes called "in-law suites" or "granny flats," that are sometimes built on the properties of single-family homes. But a measure by West Mifflin state Rep. John Inglis and Pittsburgh state Rep. Lindsay Powell, who co-chairs the Bipartisan Housing Caucus, aims to make it easier for owners to add the small homes to their backyards or sideyards.

Inglis said he understands some municipalities may have adopted restrictive zoning policies out of concern for safety or overcrowding.

But "accessory dwelling units are a proven way to increase housing supply without changing the character of existing neighborhoods," Inglis said in a statement. "Whether it's a garage apartment, a backyard cottage, or a converted basement, these homes can provide affordable housing opportunities while giving homeowners more flexibility."

On Monday, the bill passed the House 139-62. Republicans were split in support, but Moon Township's Valerie Gaydos and Peters Township's Natalie Mihalek voted in favor alongside GOP leader Jesse Topper. Two Westmoreland County Republicans, Eric Nelson and Leslie Rossi, also voted "yes."

Another bill from House Democrats — also known as the "Golden Girls Law" — seeks to undo "arbitrary limits on unrelated roommates," which some municipalities observe. It was slated for final House vote this week, but was delayed.

Passed the Senate: easing 'potential pollution' standards to spur housing development 

A measure from York County Republican Dawn Keefer would amend the state's Clean Streams Law to make it easier for smaller construction projects to get permits quicker. The amendment relates to "land disturbance," which could affect "storm water discharge" during new construction.

Supporters say the change would allow developers to get shovels in the ground faster.

The proposal would let owners of certain construction sites apply for a waiver with the state Department of Environmental Protection, which could then sign off on a permit. If the site disturbs less than five acres of land, the bill would allow developers to request the waiver.

Senate leader Joe Pittman said the bill is one of several Republican-sponsored measures to deregulate construction. And he used what has become a popular political argument: affordability.

"Why is housing not affordable? By and large, because we don't have housing stock," Pittman said. "If you want affordable housing, you gotta have houses — talk to developers in Western Pennsylvania, and they will tell you that if you wanna build homes, go to Ohio."

Other housing-related Senate bills that have yet to get a full chamber vote would boost a tax abatement for redevelopment up from ten to 20 years, and create pre-approved housing plans, which supporters say would lower construction costs.

Passed the House: accessing medical cannabis in hospitals

Squirrel Hill Democrat Dan Frankel, who chairs the House Health committee, believes terminally ill patients should be able to use medical marijuana while receiving end-of-life treatment in hospitals. A bill he sponsored, nicknamed "Ryan's Bill," passed the state House 174-27.

"This bill is about easing suffering and preserving dignity for patients facing unimaginable circumstances," Frankel said in a statement after the bill's passage.

Before the House vote, Frankel told the story of Ryan Bartell, a 41-year-old patient from California who died from pancreatic cancer. Bartell stopped using opioid painkillers in hospice after he realized how they affected him.

"Ryan woke up from what his father described as a semi-comatose state and pleaded to be taken off fentanyl because he did not want to spend his last weeks sleeping," Frankel said, adding that Bartell was prohibited from using medical cannabis at the hospital. Another facility allowed Bartell to access cannabis, so his family transferred him.

Patients in Pennsylvania could face similar prohibitive policies, Frankel said. But if approved by the Senate, the legislation would give "some very sick people the chance to spend their final days conscious, comfortable and connected to the people they love," he added.

House Bill 2254 is expected to be referred to the Senate's Health and Human Services committee.

Advanced out of committee: enhanced security for EBT cards

A bill backed by several Allegheny County members will likely see full House consideration in the coming weeks: a security update to electronic benefit cards, which are used to pay for food and goods, made it through the Human Services committee with unanimous support.

Dozens of legislators have heard from constituents who have food benefits stolen by "card skimmers," which steal information from the magnetic strip on the back of credit and debit cards. New computer chip-enabled EBT cards would allow users to insert their cards or "tap" for payment — avoiding the need to swipe their cards altogether.

Pittsburgh-area Reps. Arvind Venkat, Lindsay Powell, and La'Tasha D. Mayes have all cosponsored the measure. Emily Kinkead and Jess Benham, along with Venkat and Mayes, sit on the key committee that advanced the measure.

If signed into law, the new card rollout would take effect in 2028.

Passed the Senate: new task force to protect children "in the digital age"

Senate Resolution 244 urges the Joint State Government Commission to create a task force led by the Attorney General's Office to study ways to protect children from rapidly-evolving technology, such as artificial intelligence.

Because resolutions don't need the approval of both chambers, the request has been forwarded to JSGC, "the non-partisan research organization that serves the General Assembly."

Republicans Devlin Robinson of Bridgeville and Camera Bartolotta of Monongahela both cosponsored the resolution.

"Ensuring our laws protecting children keep pace with the rapid changes in technology is a mission critical to the Office of Attorney General," said state Attorney General Dave Sunday in a statement after the measure's passage.

Passed the House: educate the public about artificial intelligence

A measure cosponsored by the chairs of the House Communications and Technology committee, including Cecil Township Republican Jason Ortitay, would create an AI public education campaign led by the state Attorney General's Office. It passed the House this week with near-unanimous support, 198-3.

The campaign would train the public to identify AI-generated content and misinformation, avoid scams and protect personal information when using AI programs.

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