Pennsylvania Legislature Faces Key Issues: Skill Games, Data Centers

What Pennsylvania lawmakers could tackle this fall

After a lengthy summer break, Pennsylvania’s lawmakers are reconvening with a packed agenda. Critical issues await their attention, including decisions on skill games, data center regulations, utility cost increases, and a potential ban on cell phone use in educational settings.

Skill Games Under Scrutiny

In June, a ruling by the Pennsylvania Supreme Court categorized skill games as slot machines, granting the legislature a 120-day period to legislate their future. Proponents are mobilizing public support to urge legislators to back bills that would formalize regulations for these machines.

Two bills, HB2213 and SB1079, have been introduced with bipartisan support. Rep. Danilo Burgos (D-197), the primary sponsor of the House bill, emphasized the importance of these regulations for job security and community support, saying, “This is about job security for community members across Pennsylvania… And helping keep doors open at VA clubs, at VFWs, and a slew of other community groups that benefit.” Meanwhile, Sen. Gene Yaw (R-23), leading the Senate initiative, highlighted the potential widespread impact, noting, “It’s going to be a tremendous hit to a significant number of Pennsylvanians if we don’t address it.”

With only six session days remaining before the deadline, lawmakers are pressured to find a resolution. A proposal from Rep. Brad Roae (R-6) seeks to extend this deadline, asserting, “It is unlikely that legislation to make skill games legal, establish a tax rate, establish regulations, and decide how to spend the revenue will get done by October 13.”

Restricting Data Centers

The rapid expansion of AI and data centers in Pennsylvania prompted Gov. Josh Shapiro to issue an executive order on August 18, aimed at tightening restrictions due to rising public concerns. New legislation introduced by Rep. Kyle Donahue (D-113) requires developers to secure an electricity provider before getting zoning approval, ensuring accountability and transparency.

Additionally, HB2674 aims to prevent data centers from obtaining public utilities status, a move that would restrict the use of eminent domain by developers. Donahue commented, “We’ve passed a lot of legislation on data centers that I think would put up some very good guardrails… I think put together it really does create at least some sort of framework to regulate these developments that are just exploding across the Commonwealth.”

Addressing Rising Utility Rates

The strain on the power grid from burgeoning data centers is contributing to increased utility rates, as reported by the Public Utility Commission. In response, Rep. Elizabeth Fiedler (D-184) has introduced several bills to tackle the issue, including HB2224, which seeks to ensure equitable utility pricing by providing for return on equity.

Expressing concern over the affordability of utility bills, Fiedler stated, “People’s utility bills have become totally unaffordable… Yet Pennsylvania’s utility monopolies aren’t struggling: they earn among the highest profit margins for their shareholders. These excessive profits come straight out of the pockets of residents and businesses.” The proposal passed the House in June, with Fiedler optimistic about an upcoming Senate vote.

Cell Phone Usage in Schools

Legislation to ban cell phones in schools is also pending, with HB1814 having passed the House in June and SB1014 clearing the Senate in February. Public opinion polls indicate broad support for removing mobile devices from classrooms.

During his February budget address, Gov. Shapiro advocated for legislative action, urging, “Students need to spend less time focused on their phones and more time focused on learning… I know there are bills in both chambers to do this — come together and send a bill to my desk.”

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