Pennsylvania’s latest two-year legislative session has drawn to a close, and with a new General Assembly not starting their work until January, the holiday season provides an ideal opportunity to step back and assess just what the association was able to accomplish in Harrisburg in 2023 and 2024.
Organized Retail Crime legislation, SB 596, was signed into law by Governor Josh Shapiro in December of 2023. The bill, in whose development PFMA and its Loss Prevention Committee played a key role, established a new office under the state Attorney General to target and prosecute organized retail crime, and increased the thresholds for the specific crime of organized retail theft. The law went into effect this July and the association continues to meet with staff from the Attorney General’s office to coordinate on strategy and work to tackle organized retail crime in the most effective way possible.
A longtime PFMA priority, legislation enabling the sale of ready to drink beverages was signed into law by Gov. Shapiro in July 2024 and went into effect in September. A signature achievement for the association, the passage of SB 688 by Sen. Mike Regan (R-York) settled one of the most gaping inconsistencies in Pennsylvania’s alcohol laws by allowing retailers to sell spirit-based RTDs.
Legislation updating the state’s Clean Slate rules, including the sealing of details in certain low-level, nonviolent felony drug crimes after 10 years without another misdemeanor or felony conviction, and reducing the waiting period for sealing misdemeanor convictions to seven years, and to five years for summary convictions, was signed into law as Act 36 of 2023. PFMA supported this and other efforts to ensure opportunities for citizens returning to the workforce.
“Porch Pirate” legislation was also passed into law in 2023 as Act 41. The bill, which PFMA supported for the positive impact it would have for association members involved in this space, establishes a new series of offenses for the theft of delivered mail, including food deliveries.
Emergency/Master Fuel Shutoff legislation, HB 1171, was signed into law by Governor Shapiro in 2023. The new law increases the maximum distance between master control emergency shut-off devices and fuel dispensers from 200 feet to 350 feet. PFMA supported and testified before a House committee in favor of this legislation.
Reforms to how Pharmacy Benefit Managers operate in Pennsylvania were enacted in 2024. Throughout the spring PFMA worked with members of the association’s Pharmacy Council, lawmakers and other stakeholders on comprehensive reform legislation that addresses some of the most egregious problems facing grocery and independent pharmacies, such as price steering and spread pricing.
In 2023 the state’s outdated Frozen Dessert Law was repealed. PFMA supported repeal of this obsolete law which placed specific requirements on the sale of frozen desserts. The Frozen Dessert Law was passed in 1965, at the time aimed at cracking down on the sale of “adulterated or deleterious frozen desserts” and applying arcane definitions to what does and does not constitute a frozen dessert (Popsicles yes; frozen cakes no). Subsequent food safety regulations make the law redundant at best, forcing operators to obtain extra licenses and inspections for frozen dessert machines already being inspected under other laws. No longer.
Within omnibus liquor reform legislation passed in 2024 was the restoration of the Pennsylvania Liquor Control Board’s backhaul discount. Under that program, which was abruptly phased out several years ago, wholesale licensees were provided a discount for picking up their purchases at PLCB-specified locations. The reinstatement of this program represented a significant win for PFMA members involved in alcohol sales, who will see substantial savings by once again receiving a discount for collecting their own alcohol shipments.
PFMA successfully advocated for funding for a number of specific line items proposed in the 2024 budget, including $2 million for Healthy Food Financing, $3 million in state funds to ensure seamless implementation and administration of the Summer Electronic Benefit Transfer Program, and millions in funding for agriculture innovation to help support and attract new ag-related businesses. The budget also contained sizable funding for the new state ORC Unit, which we will continue to advocate for year-on-year.
PFMA also lobbied for the inclusion of net operating loss carryforward reform in the budget. Pennsylvania was one of only two states to limit net operating loss deductions to a lower level than the federal limit of 80 percent – in the commonwealth the deduction has been capped at 40 percent of taxable income. The budget agreement included a tiered increase to the NOL cap that will ultimately bring Pennsylvania in line with the federal limit. As part of the budget agreement lawmakers also approved Gov. Shapiro’s PA SITES proposal, including in the budget language authorizing $500 million to provide grants or loans to developers or local government agencies so they can prepare sites for industrial or mixed-use projects.
Items that progressed over the two-year session but did not make it across the finish line included PFMA’s work to bring fairness to the realm of swipe fees. Despite falling short of a final vote, this issue gained real traction following a successful committee vote in May on legislation that would prohibit interchange fees from being charged on the sales tax portion of electronic transactions in Pennsylvania.
The association also worked on expanding Pennsylvania’s vendor discount. In 2016, as part of that year’s budget agreement, a cap was instituted on the rebate businesses have traditionally received for remitting sales tax collections of any amount to the Commonwealth. Since that time, no matter how much they remit, businesses are limited to the lesser of 1 percent of the tax collected or $300 annually. PFMA helped develop legislation that expands the discount to help offset the additional expense incurred by businesses when they collect state sales tax.
PFMA was also proud to support HB 2357, legislation establishing the Pennsylvania Healthy Food Bucks Program, which passed the House in June with a strong bipartisan vote. PFMA also supported HB 2886, explicitly applying immunity to the donation of food that has exceeded the manufacturer’s recommended label code date but is still fit for human consumption. Both bills passed the House but stalled awaiting Senate consideration.
The association is committed to having all of these priority items reintroduced in the new session.
PFMA has much to show for its work over the past two years in the state Capitol, and not just by the measure of bills that passed or progressed, but also by what did not move forward. The association again was able to hold the line on a number of unworkable proposals of various stripes whose sum effect would impact the ability of members to remain competitive and provide the best for their employees and customers.
Through its legislative advocacy, and the efforts of its members, the association has made significant contributions to the industry’s growth and success in Pennsylvania.
And in January, we’ll get started all over again.
Much of PFMA’s advocacy work is coordinated through its Legislative Committee, which holds monthly meetings and shares weekly updates on developments in the state House and Washington. If you are not yet involved and would like to join please contact us at
[email protected]. ■
