Budget Update June 2021

RTD Legislation Pushed to Fall Legislation that would authorize the sale of ready-to-drink canned cocktails in grocery and convenience stores stalled in the state legislature last week and now will not be taken up until the fall. Amid a flurry of legislative activity as lawmakers worked to pass a state budget, RTD language was stripped out of HB 1154 in the House and the bill was not taken up in the Senate before both chambers recessed for the summer. HB 1154 was originally limited to language making permanent the sale of cocktails to go by bars and restaurants, however it was broadened in the Senate to include expanding the sale of ready-to-drink beverages by licensed businesses. The expanded legislation was approved by the Senate but the provisions regarding RTDs were eliminated by a House committee when it was sent back to that chamber for concurrence. The Senate was initially expected to act on the bill on Friday, but ultimately pushed it off the agenda entirely. In news reports, the bill’s prime sponsor Kurt Masser (R-Northumberland) said he still believes in RTDs but felt that the votes were not there to pass the combined legislation before the summer recess. In an interview with Pennlive he said “I think that’s something to be revisited because like a lot of Pennsylvania liquor laws, they’re outdated and need to be addressed.” PFMA strongly supports RTD expansion and led a broad coalition advocating for passage of the bill with RTD language intact. The association will continue to work with legislators to restore RTD provisions to HB 1154 and pass the bill when they return to Harrisburg later this year.

$39.8 billion budget passes General Assembly; awaits governor’s signature While HB 1154 ultimately did not reach the finish line, state House and Senate members were able to negotiate and pass a budget totaling nearly $40 billion last week, spending a small portion of federal pandemic stimulus aid while setting aside much of it to bolster the state’s Rainy Day Fund. The budget, which Gov. Wolf is expected to sign, includes a $300 million increase in basic education funding and significant increases to other education lines, including early childhood and special education initiatives. Of the state’s $7.3 billion in federal pandemic funds, more than $1 billion was allocated toward transportation infrastructure and other pandemic-related expenses. Of the total, roughly $5 billion was channeled to the Rainy Day Fund. According to the provisions of the American Rescue Plan, that money must be spent by the end of 2024. In addition to the federal funding, the state’s own revenues came in nearly $3 billion over projections, leaving lawmakers in the unusual position of dealing with a revenue surplus. The final budget passed both chambers along large majority votes, with progressive Democrats and conservative Republicans tending to comprise the opposition.

Budget commits PA to SNAP extension effort Along with the General Appropriations bill itself, legislators also must pass a number of related pieces of legislation to fully implement both the spending and revenue sides of each fiscal budget. Within each of these code bills are often inserted small but important provisions that are wound into the overall budget agreement. Last year, the state’s Fiscal Code bill included language pre-empting local plastic bag bans for a year. While that provision was not extended this year, the FY 2022 Fiscal Code does include language asserting the commonwealth’s intention to find a way to continue receiving emergency SNAP payments despite the state’s emergency declaration having been ended last month. PFMA has monitored the success of similar efforts in states including Michigan and supports the continuation of emergency SNAP payments in Pennsylvania.

Other PFMA-monitored bills pass before summer recess HB 101, agritourism liability protection legislation by Rep. Barb Gleim (R-Cumberland) was approved in both chambers and now awaits the governor’s signature. The bill exempts agritourism activity providers from being held civilly liable for injuries or damages sustained by participants as long as certain conditions are met. PFMA supports the bill and other efforts to provide limited liability protections for responsible businesses. SB 618, “vaccine passport” legislation that would prevent state and local government entities, along with educational institutions from requiring proof of COVID-19 vaccination passed Thursday. Gov. Wolf has signaled that he will veto the legislation and it is unlikely to get the two-thirds support in both chambers it would need to override that veto. SB 516, by Sen. Pat Browne (R-Lehigh) would allow courts to turn over court dockets with outstanding balances to private collection agencies. SB 434, legislation that updates “sell by” and “best by” date labeling for pasteurized milk received legislative approval and is now awaiting the governor's signature. Currently, Pennsylvania regulation requires milk to be labeled for sale within 17 days of pasteurization. SB 434 allows milk processors to apply for Department of Agriculture approval to exceed the 17-day limitation by moving to a science-based “open code” format. The legislation establishes testing requirements and standards, including dairy laboratory criteria, bacterial testing of samples and continued periodic testing, which must be met for milk processors to receive Department approval. PFMA supported this legislation. Changes to the state’s medical marijuana law were approved with the passage of HB 1024. A variety of temporary COVID-related provisions were made permanent, including curbside pickup and an increase in the maximum obtainable supply from 30 to 90 days. A proposal allowing patients to home grow up to five cannabis plants did not make it into the final version of the bill.

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