H-2A tax exemption and food residual bills have passed out of committee in the PA House of Representatives. 

Several pieces of legislation related to agriculture passed out of committee to advance through the legislative process this week. 

A bill to end the unemployment tax on guest workers passed out of the House Committee on Agriculture and Rural Affairs this week. Pennsylvania requires both farmers and H-2A workers to pay state unemployment tax even though farm workers on H-2A visas cannot collect unemployment benefits. Their wages are also exempt from federal unemployment tax. 

House Bill 1157 was sponsored by Representative Christina Sappey, a Democrat of Chester County. During a hearing on the bill, she said, “This policy costs our ag operations thousands of dollars and reduces workers’ paychecks.” 

Three Republicans voted against the bill in committee. They were Representatives Stephanie Borowicz, Joseph Hamm, and Perry Stambaugh. 

Representative Borowicz said, “I totally understand the intent of the bill and not paying unemployment compensation, but I just feel like this bill is very poorly written.”

House Bill 587 also passed out of committee this week. The bill would establish a certification requirement for haulers and brokers of food processing residuals. Representative Borowicz was the only member to vote against the bill.

House Bill 587 is led by Representative Paul Friel, a Democrat of Chester County. In a release, Friel said, “Food processing residuals, also known as FPR, are the leftover product created by commercial food processing… While FPR can be used to fertilize soil, it can create numerous problems if care is not taken.”

He added, “H.B. 587 would establish a certification program for the haulers and brokers of FPR.”

Representative Friel also led House Bill 586, a related bill that would “direct the Department of Environmental Protection, in coordination with the Department of Agriculture and the State Conservation Commission, to update guidance for those who store and apply FPR and would require the creation of a land application system to guide how, when, and in what quantities FPR can be applied.”

House Bill 586 passed out of committee with a vote of 15 to 11. One Republican, Representative Thomas Mahaffie of Dauphin County, joined Democrats in advancing the bill.