PFMA is proud to be working with lawmakers on some of our priority issues this session, almost all of which have now been formally introduced as legislation.
SNAP Distribution Schedule Reform
Introduced as SB 242 by Sen. Dave Argall (R-Schuylkill) and HB 2095 by Rep. Dave Madsen (D-Dauphin)
Synopsis: Supplemental Nutrition Assistance Program (SNAP) disbursements are distributed in PA on a county-by-county basis according to three different schedules, which is complicated for recipients and challenging for businesses trying to meet stocking and staffing demands. This bipartisan proposal — a longtime PFMA priority— would expand and make uniform a single distribution schedule, easing these pressures and providing a better shopping experience for recipients.
Sales Tax Collection Support for Businesses
Introduced as SB 1225 by Sen. Kristin Phillips-Hill (R-York) and HB 2278 by Rep. Paul Friel (D-Chester)
Synopsis: The Commonwealth has historically incentivized timely and complete remittance of sales and use tax by offering businesses a vendor discount; in effect a 1 percent remuneration to help offset the administrative costs of collection. It has proven to be a mutually beneficial arrangement, with the small discount encouraging businesses to remain efficient collectors while presenting the state a reliable way to collect sales tax in all its forms. The longstanding arrangement of a 1 percent discount changed in 2016, when, as part of that year’s budget agreement, a cap was instituted on the amount back businesses can get 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. This bipartisan legislation would expand the discount and helps to offset a portion of the additional expense incurred by businesses when they collect state sales tax.
Pharmacy Benefit Manager Reform
Introduced as SB 1000 by Sen. Judy Ward (R-Blair) and HB 1993 by Rep. Jessica Benham (D-Allegheny)
Synopsis: For years, the anticompetitive practices of Pharmacy Benefit Managers — for-profit companies that manage prescription drug benefits on behalf of health insurers, Medicare Part D and other payers — have been impacting costs for both patients and independent and supermarket pharmacies. Their behavior has led to pharmacy closures, reduced access to medication, and negative health impacts.
Fundamentally, this issue exists because PBMs have been allowed to operate without oversight at both the federal and state levels. The legislative proposals from Sen .Ward and Rep. Benham would direct the Insurance Department to develop a process for hearing and resolving pharmacy complaints against a PBM. PBMs would report to the department the amount of rebates and payments received from drug manufacturers, and how those rebates and payments were distributed by the PBM.
The legislation would also limit or ban several practices by PBMs, including patient steering, spread pricing and retroactive recoupment of money paid by the PBM to the pharmacy.
Ready to Drink Beverage Legislation
Introduced as SB 688 by Sen. Mike Regan (R-York) and HB 1750 by Rep. Robert Leadbeter (R-Columbia)
Synopsis: Public opinion research continues to show that the vast majority of both consumers and non-consumers of RTD beverages believe they should be sold alongside other options like beer and wine. Unfortunately, it’s still not possible in Pennsylvania, frustrating retailers and consumers alike. Groceries, convenience stores and other retailers remain limited to selling only malt-based beverages and wine products.
PFMA continues to work on legislation that would change that by allowing manufacturers to distribute RTDs through the PLCB network or approved licensees, who have shown themselves to be reliable partners in the sale of wine and beer, taking public safety and tax remittance seriously.
Front-end register alcohol sales
Introduced as SB 117 by Sen. Judy Ward (R-Blair)
Synopsis: This legislation would improve consumer access to wine and beer at grocery stores, convenience stores and other alcohol retail locations.
Without changing any necessary restrictions on beer and wine licensing or adding licenses, SB 117 would allow restaurant licensees with a wine expanded permit the ability to sell wine and beer at any register, require ID card readers at these registers, and permit a sales clerk under 18 to operate these registers except when alcohol would be purchased. If alcohol is to be purchased, an employee 18 or over would then operate the register. In addition, the bill would allow customers to access beer and wine within the main store area.
Other Legislation
Still in the pipeline is legislation exempting sales tax from being subject to swipe fees. Rep. George Scott (D-Montgomery) is circulating a co–sponsorship memo in the House ahead of formal introduction of language.
Outreach to your local lawmaker is always effective in helping move the needle. If you are interested in advocating on behalf of your business on any of these issues please reach out to PFMA staff to talk more.
