Capitol Numbers Games
Pennsylvania’s state budget negotiations are predictably unpredictable. Last year’s budget was delayed until December due to disagreements over public tax dollars for private school vouchers, an issue that might resurface this year. A key issue is education funding, following a 2023 Commonwealth Court ruling that deemed the current system unconstitutional. House Democrats, with some Republican support, have advanced a bill to reform the education funding formula, addressing a $5.1 billion adequacy gap and proposing transparency measures for cyber charter schools. However, it lacks funding, leaving lawmakers to determine budget allocations. Meanwhile, some GOP lawmakers advocate for more school choice options.
Talks on regulating skills games not going well
Efforts to tax Pennsylvania’s lucrative but legally questionable skill games sector face challenges amid state budget talks. These untaxed, unregulated devices, resembling slot machines, are found in bars, restaurants, and convenience stores across the state. Shapiro proposed regulating and taxing these games at 42 percent, projecting $150 million in revenue for the upcoming fiscal year, potentially doubling in the future. However, the proposal is faltering as lawmakers are caught between powerful skill games and casino interests, both of which have invested heavily in lobbying and campaign contributions. Complicating matters, the state Supreme Court’s recent decision to review a lower court ruling allowing the games to remain available has caused some lawmakers to hesitate. The casino lobby argues for taxing skill games at the same 50 percent rate as slot machines, with State Sen. Frank Farry introducing a bipartisan-supported bill to this effect, while some Senate Democrats support a complete ban on the devices. The skill games industry opposes these measures, arguing that small businesses hosting these devices cannot be compared to large casinos.
RTD poised for full House vote; omnibus liquor reform also progressing
SB 688, legislation authorizing licensed retailers to sell ready-to-drink “canned cocktails,” is now awaiting a vote in by the full House after it was amended again on the House floor and approved by the House Appropriations Committee.
PFMA was neutral on changes in an amendment adopted earlier but has continued to negotiate for the best possible end product for retail members. The latest iteration restores the ability of in-state distilleries to sell to retail licensees for the purpose of reselling for off-premises consumption.
Omnibus liquor reform legislation HB 829 is also moving forward in the Senate. This bill makes numerous changes that will have a positive impact on licensees. Among them, the legislation includes language to restore the backhaul program that allows a permit holder to pick up product at a PLCB distribution center and receive a credit for the expense incurred.
Negotiations continue on dual PBM bills
PFMA is continuing work on two bills circulating in both chambers of the General Assembly, SB 1000 and HB 1993, that seek to make substantial reforms to how Pharmacy Benefit Managers (PBMs) operate in the commonwealth.
A draft amendment to SB 1000 would make numerous negative changes to the original legislation supported by the association. PFMA and other stakeholders have pushed back and hope to see their input reflected in modifications to the amendment.
HB 1993 was amended on the House floor with language including improvements suggested by PFMA following member feedback. The bill is now in position for a third consideration vote on the House Floor.
