PRLA Summer 2019

20  • PENNSYLVANIA RESTAURANT & LODGING matters • Summer 2019 STATE LOCAL FEDERAL LEGISLATIVE CORNER State Items BUDGET UPDATE By the time you read this issue, the state budget will have passed, and legislators will be back in the district for summer recess. As the clock ticks to the end of the month, it does seem that the minimum wage increase and tipped wage threat will be pushed off until fall. With a budget surplus this year, legislators want to pass a budget and go home. LEGISLATURE MAKE-UP A slew of special elections over the past few months has changed some of the make-up in the House and Senate. As of now, the House Republicans hold a majority of 109-93 with one special election still pending. The Senate Republicans hold a majority of 28-22. SUMMER PLANS PRLA will be assisting Rep. Kurt Masser (R—Northumberland) and Rep. Donna Oberlander (R—Clarion) in putting together a House Republican Policy Committee hearing on the “State of the Hospitality Industry” for August. PRLA also will be testifying at a hearing hosted by the House Liquor Control Committee, which will focus on PRLA’s legislation, HB 1617 (Staats, R—Bucks), which allows H licenses in existence before 1949 to convert to an R license. That hearing is expected to be held in July. BREWERS TAX PRLA has been working the last few months with the Brewers of Pennsylvania and the Administration to determine how much manufacturers and malt and brewed beverages should be paying in sales tax and where that tax should be assessed. It is expected that a compromise piece of legislation will be signed by the Governor by the time you read this article. TOURISM LINE ITEM While revenues are beginning to come in from Act 109 of 2018—which closed the online travel company loophole and dedicated the funds to tourism—not enough money has been received to make the tourism office solvent without the assistance of general fund revenue. Gov. Wolf did ask the legislature to maintain the $4 million line-item the office received last year to ensure that statewide promotion can continue while the restricted account continues to receive revenue. We will find out when the final budget is passed if the legislature will honor his request. PLCB APPOINTEE The Senate confirmed the appointment of Mary Isenhour to the PLCB by a vote of 45-5. The five negative votes were, Folmer (R—Lebanon), Langerholc (R—Cambria), Martin (R—Lancaster), Mastriano (R— Franklin) and Phillips-Hill (R—York). ONLINE HOME SHARING REGISTRY HB 787 (Heffley, R—Carbon) was reported out of the House Tourism & Recreational Development Committee with only a single negative vote. The House has signaled that it could come up for a vote as early as this fall, but it faces an uphill battle in the Senate. STATE SALARY THRESHOLD The state Department of Labor this summer is expected to release an updated salary threshold increase proposal. Originally, the department proposed increasing the exempt employees’ threshold to almost $49,000/year. We are hopeful that the department will include a more modest increase or, better yet, follow the federal proposal, which is proposed to be about $35,000/year. GAMES OF SKILL The Pennsylvania Liquor Control Board has issued a letter to licensees that operating a “game of skill” could lead to citations from the Bureau of Liquor Code Enforcement and impact their license. We urge licensees that operate games of skill to carefully consider if their game could lead to a citation because the “skill” is not really a “skill” at all.