Committee advances bill to exempt H‑2A workers and employers from state unemployment taxes

House Bill 1157, sponsored by Representative Sapi, was advanced by the Agriculture & Rural Affairs Committee after a sponsor presentation and limited questioning. The measure would exempt H‑2A visa holders and their employers from state unemployment compensation taxes and contributions.

"House Bill 1157 is pretty cut and dried, and it's something that is, you know, very important to ag operations throughout the Commonwealth," Representative Sapi said as she explained the bill. "It provides a clear exemption so that farmers do not need to pay unemployment taxes on workers who have come to the country under the H‑2A system." She described the bill as aligning state law with federal practice by removing a state tax obligation that she said yields no benefit because, under federal and state law, H‑2A workers cannot collect unemployment compensation.

Representative Borowitz questioned the bill's drafting and said he had read it repeatedly. "I totally understand the intent of the bill and not paying unemployment compensation, but it's just I just feel like this bill is very poorly written," Borowitz said. He cited a specific line and asked whether the wording matched prior bills and federal definitions, and was told by another speaker that it "is how it was worded in the former bill, and it goes back to federal definition." Borowitz said he still had concerns but acknowledged the bill's intent.

The clerk took a roll call after brief discussion; the transcript records several "no" responses by named members (including Secretary Cook, Representative Hamm and Representative Samba) and then the clerk announced "the ayes have it" and the bill was reported out of committee. The transcript does not include the bill's effective date, the precise statutory text that will be enacted, or any fiscal-note details about projected state revenue effects; those items were not specified in committee discussion.

Representative Sapi said the Pennsylvania Farm Bureau supports the bill; she and other supporters framed the measure as a tax‑policy alignment that would reduce costs for agricultural employers without changing immigration policy or workers' eligibility for benefits.