Pennsylvania
Legislative roundup: DHS highlights vital role of Medicaid in supporting economy
Pennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh, Pennsylvania Insurance Commissioner Michael Humphreys and Pennie Executive Director Devon Trolley this week discussed the importance of Medicaid in providing health care coverage to millions of Pennsylvanians amid proposed federal cuts to the program — which would kick more than 300,000 Pennsylvanians off their health insurance.
More than three million Pennsylvanians – or 1 in 4 people – get their health care coverage through Medicaid, also known as Medical Assistance in Pennsylvania. With this coverage, Pennsylvanians can see a doctor, fill prescriptions and access preventive services like health screenings. This coverage is vital to helping people stay healthy, take care of their families and contribute to our economy.
“All of us know someone — whether its ourselves, a friend, loved one, or a neighbor — who Medicaid has helped,” Arkoosh said. “But no matter how you personally get your health care coverage, Medicaid is vital to protecting the health of your community. Congressional Republicans’ proposed cuts to Medicaid would be devastating not only for those who would lose their health coverage, but for all of us who would face the real life consequences of crowded emergency departments, increases in the cost of health insurance, and the catastrophic effects on economies and health systems in rural areas.”
More than 300,000 Pennsylvanians will lose access to Medicaid due to:
• New eligibility requirements.
• Increased bureaucratic paperwork because of proposed six-month re-determinations, whether eligibility is determined every six months instead of every year.
• New work reporting requirements, which will require more staff and new IT infrastructure.
The bill also proposes other federal cuts that will further destabilize our health care infrastructure and threaten the closure of hospitals, especially in our rural communities. Half of Pennsylvania’s 65 hospitals serving rural communities operate at a deficit, struggling to survive, and relying significantly on Medicaid to cover the cost of providing care.
“The Congressional Republicans’ bill would have devastating consequences for Pennsylvanians. From unaffordable health care costs to a higher number of uninsured individuals seeking uncompensated care through our hospital systems, this bill should concern every one of us.” said Pennsylvania Insurance Commissioner Michael Humphreys.
As of today, Congressional Republicans’ bill needs to pass the U.S. Senate and be signed into law. There are no changes to Medicaid.
Lawrence confirmed as Pa.’s Consumer Advocate
Attorney General Dave Sunday this week announced that the Pennsylvania Senate unanimously confirmed the nomination of Darryl Lawrence to serve as Pennsylvania’s Consumer Advocate.
Lawrence has been serving as interim Consumer Advocate since Feb. 4, where he has been representing Commonwealth consumers in public utility service quality and pricing matters. Lawrence has been with the Office of Consumer Advocate since June 2005 and previously held the position of Senior Assistant Consumer Advocate for the office.
“I am pleased that the Senate has confirmed my appointment of Darryl Lawrence as Pennsylvania’s Consumer Advocate, and am confident that Darryl will serve Pennsylvanians well in that capacity,” Sunday said. “Darryl dedicated his career to advocating on behalf of Pennsylvanians who may not have a voice in the regulatory, judicial, and legislative processes attached to public utilities. He has proven himself as an experienced, tough, fair, and honest advocate.”
The Pennsylvania Office of Consumer Advocate was established by the General Assembly in 1976 to serve as the legal representative for all utility ratepayers in the Commonwealth.
The Pennsylvania Office of Consumer Advocate is housed in the Office of Attorney General, but functions independently. The Office of Consumer Advocate has discretion and authority to intervene in litigation on its own behalf, and has actively participated in matters before the Pennsylvania Utility Commission and in state and federal courts.
Public utilities include electric, natural gas, water, wastewater, and telecom companies under either Pennsylvania Public Utility Commission or Federal Energy Regulatory Commission jurisdiction.
PUC Chairman confirmed for second term
The Pennsylvania Public Utility Commission this week thanked the State Senate for unanimously confirming the reappointment of Chairman Stephen M. DeFrank to a second term as Commissioner and expressed appreciation to Governor Josh Shapiro for submitting the nomination.
Chairman DeFrank was confirmed on June 4, by the Senate and will continue serving as chairman of the commission. His new term extends through April 1, 2030.
“I’m honored by the confidence shown by Governor Shapiro and the Senate,” DeFrank said. “At a time of fast-moving change across our energy and utility systems — from rising demand and extreme weather to cyber-security and infrastructure modernization — the Commission’s mission remains clear: ensuring safe, reliable, and affordable service for every Pennsylvanian.”
DeFrank was sworn in immediately following his confirmation.
NIL legislation to protect student athletes to be introduced
Pennsylvania House Republican Leader Jesse Topper, R-Bedford/Fulton, and Rep. Perry Stambaugh, R-Perry/Juniata, this week announced they will soon introduce legislation to provide protections for student-athletes receiving compensation for the use their name, image and likeness (NIL).
While a case wending through federal courts will likely expand the NIL universe, no state legal structure exists. This leaves compensated student-athletes vulnerable to poor financial decisions and without recourse if they should become injured during their career.
“NIL is one of the most dynamic and evolving spaces in the national sports market that has become a life-changing positive for many student-athletes and families,” Topper said. “As the NIL landscape continues to advance at the federal level, it is appropriate for state legal supplements to ensure student-athletes are protected at a vulnerable time in their lives.”
“Our legislation will ensure that students have the financial education and protection available to safeguard their NIL assets while giving them the opportunity to save NIL earnings should they become injured or otherwise incapable of pursuing their athletic career.”
According to the recently filed co-sponsorship memo in advance of the introduction of formal legislation, the Topper-Stambaugh NIL proposal would require institutions of higher education to offer all student-athletes the option to place a portion of their revenue sharing or NIL earnings into trust accounts. The institutions may partner with established financial firms experienced in educational trust management to minimize administrative overhead. The accounts would have the following features:
• Funds become fully accessible upon graduation or departure from the university.
• Limited hardship withdrawals permitted with appropriate oversight.
• Professional investment management with transparent reporting.
• Opt-in structure that preserves athlete autonomy while encouraging responsible financial planning.
In addition, colleges and universities would be mandated to provide financial literacy education and resources to their student-athletes.
“In the new ‘Wild, Wild West’ of collegiate athletics that NIL has spawned, helping protect student-athletes from financial harm or exploitation is a solid first step states should take,” Stambaugh said. “As the landscape surrounding NIL evolves, Pennsylvania will be studying changes and enacting policies to ensure our colleges and universities can remain competitive.”
Reach Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.
HARRISBURG — A new task force under Pennsylvania’s Department of State has been working since February to hunt down AI chatbots that may be misleading users into believing the bots are licensed professionals.
Last week, the Shapiro administration filed what it said was the first lawsuit to stem from its AI investigations and the first enforcement action of its kind announced by a governor in the United States. Pennsylvania officials indicated there could be more to come.
The high-profile litigation comes as lawmakers across the country are pursuing, and in some cases enacting, legislation to address concerns brought on by the growing artificial intelligence industry — from banning the creation of sexual images of minors to requiring age verification for all users. A number of proposals from Gov. Josh Shapiro’s most recent budget address await action in the legislature.
The administration’s lawsuit alleges that software known as Character.AI, which creates fictional personalities for users to interact with, posed as a licensed doctor and offered medical advice to a state investigator, violating state law governing the practice of medicine. The suit was filed by Pennsylvania’s State Board of Medicine.
“We will continue to take action to protect the public from misleading or unlawful practices, whether they come from individuals or emerging technologies,” Secretary of the Commonwealth Al Schmidt said in a statement following the Character.AI lawsuit.
Shapiro made a similar promise in a statement, saying Pennsylvania will continue “holding bad actors accountable and setting clear guardrails so people can use new technology responsibly.”
The lawsuit says it stems from an investigation in which an employee with the Department of State created an account with the service and began a dialogue with “Emilie” — an AI-generated character the software described as a “Doctor of psychiatry.”
The character allegedly claimed it went to Imperial College London, had been practicing for seven years, and is licensed in Pennsylvania.
“In fact, I did a stint in Philadelphia for a while,” it told the investigator, according to the lawsuit.
The software also provided what the lawsuit said was a fake license number.
Those claims, the Shapiro administration argues, trick users into believing they are receiving medical advice from a licensed practitioner.
“Pennsylvanians deserve to know who — or what — they are interacting with online, especially when it comes to their health,” Shapiro said in a statement. “We will not allow companies to deploy AI tools that mislead people into believing they are receiving advice from a licensed medical professional.”
The lawsuit seeks for Character Technologies Inc. (developer of Character.AI) to “cease and desist from engaging in the unlawful practice of medicine and surgery.”
A Character.AI spokesperson said in a statement Tuesday that the company’s “highest priority is the safety and well-being of our users.” The spokesperson said that before the lawsuit, Character.AI already featured disclaimers warning that its AI characters are not real, and that they “should be treated as fiction.”
The spokesperson declined to comment on the lawsuit.
Pennsylvania’s lawsuit is not the first Character Technologies has faced. At least one case was brought by the parent of a minor who died by suicide. The company last year adopted a policy to ban minors from engaging “in open-ended chat with AI on our platform.”
The Federal Trade Commission last year also opened an inquiry into the company, along with six other chatbot providers, regarding how they “measure, test, and monitor potentially negative impacts of this technology on children and teens,” according to an agency news release.
It’s unclear what led Pennsylvania regulators to specifically investigate Character.AI. A Department of State spokesperson said the source of the complaint was “confidential.”
Shapiro told CNN, one of several national media outlets that covered the novel lawsuit, that his administration “challenged” the Department of State to conduct these types of investigations “to go and use this technology and see what kind of risks it posed” to Pennsylvanians.
Some details about the effort, which Shapiro first teased in his February budget pitch, are not yet public. Members of the task force are not disclosed online, and the Department of State did not answer questions from Spotlight PA asking for their names or how they were selected. A Department of State spokesperson said the task force consists of 12 of its employees.
As part of the AI fraud initiative, Pennsylvania is crowdsourcing tips on what software the state should investigate through its “Unlicensed Practice by a Chatbot” complaint system and hotline. According to the Department of State, it has received 18 complaints since it launched in February.
Pennsylvania’s moves against AI companies come as they rapidly grow their user bases nationwide, especially children and teenagers.
According to a survey last year from Common Sense Media, a California-based child safety nonprofit, more than half of teenagers access AI platforms at least a few times per month. One-third said they use or view the software as a tool to socialize, including for conversation or relationship practice, emotional support, role-playing, friendships, and romantic interactions.
At least five states have enacted laws restricting chatbots or requiring disclosures, according to the National Conference of State Legislatures. California, for example, requires companies to disclose to children that they are interacting with AI. Pennsylvania is not one of them, but the state medical board alleges Character.AI’s actions violated existing law.
In his February budget address, Shapiro called on the General Assembly to take action on artificial intelligence. He urged lawmakers to prohibit chatbots from creating sexually explicit or violent content of minors, mandate that developers require age verification from users, and detect when children mention self-harm or violence. He also wants companies to frequently notify users they’re not interacting with a human.
While You’re Here
Spotlight PA’s nonprofit reporting is a free public service, but it depends on your support. Give now to ensure it can continue.
Lawmakers have not yet adopted those proposals.
House Communications & Technology Committee Chair Joe Ciresi (D., Montgomery) said the body’s staff is “constantly” meeting with Shapiro’s office to discuss how lawmakers should address growing concerns from the public regarding AI.
Ciresi’s counterpart in the GOP-controlled state Senate, Tracy Pennycuick (R., Montgomery), did not respond to questions about the Character.AI lawsuit, Pennsylvania’s AI Task Force, or her staff’s coordination with Shapiro.
Two years ago, Shapiro signed a bill banning ownership or distribution of AI-generated sexual images of children and non-consenting adults, which Pennycuick had sponsored. Last year, he signed another Pennycuick bill criminalizing the use of AI to create a nonconsensual “digital likeness” (including deepfakes) to “defraud or injure” another person.
Pennycuick’s now pushing for legislation that would require disclosures and restrictions for chatbots when they interact with children. In the legislative memo, Pennycuick pointed to past lawsuits filed against chatbot developers to argue “heartbreaking cases underscore the urgent need for safeguards to protect children from unsafe and unvetted AI systems.” Her proposal passed the state Senate in March but has not advanced through committee in the House.
Lawmakers have also been working to address another aspect of the AI industry, the growth of data centers and backlash to them in some communities. In Shapiro’s February budget address, he said, “no sector of our country’s economy is growing faster than data centers and artificial intelligence.” He announced incentives for data center developers to follow stricter environmental and transparency standards.
BEFORE YOU GO… If you learned something from this article, pay it forward and contribute to Spotlight PA at spotlightpa.org/donate. This story was funded in part thanks to the support of the Lancaster County Local Journalism Fund. Learn more about how we are supported here.
Hersheypark in Pennsylvaniacould be forced to close this summer amid a dispute between the site’s operators and union employees, according to a report.
The amusement park is scheduled to open seven days a week starting May 21 in a shift from its weekend-only operation before the summer, despite a looming vote among employees about whether to go on strike.
Over 200 union maintenance employees at Hersheypark, The Hotel Hershey and Giant Center rejected a contract offer from Hershey Entertainment & Resorts on May 7, according to Inside the Magic. The park’s operators described the proposal as their “last, best and final” offer.
Over a three-day period this week, employees will vote on whether to strike after rejecting the offer, which is the third from the park’s operators. A strike could close the park just in time for the start of the busy summer season when families head on vacation.
The list of employees considering going on strike includes ride mechanics, electricians, plumbers, welders, painters, machinists, utilities technicians, carpenters, garage auto mechanics and sign artists.
In mid-March, the union and Hershey Entertainment & Resorts agreed to extend a former contract for 60 days to allow for continued negotiations.
According to Inside the Magic, union workers are seeking fair wage increases, more affordable care plans and higher pay premiums for less-desirable shifts. The union has also said that it will reject new contract offers that lower professional standards, devalue skilled trades or open the door to lower wages in maintenance roles in the future.
The Independent has contacted Hershey Entertainment & Resorts for comment about the possible strike.
Hersheypark, located 15 miles east of Harrisburg, is the largest amusement park in Pennsylvania. Founded in 1906, the 121-acre site boasts more than 70 rides, a water park with 17 water attractions and an 11-acre North American Wildlife Park, according to Hersheypark’s website.
It’s named for and themed in conjunction with the popular candy company.
However, a different park in the Keystone State was named as the top amusement park in the U.S. on TripAdvisor’s Best of the Best list.
It was Knoebels Amusement Resort in Elysburg, 42 miles north-northeast of Harrisburg, that topped the list. In doing so, the little-known park was ranked higher than Dollywood, Disney World’s Magic Kingdom, Disney’s Hollywood Studios and Universal Islands of Adventure that also made the top 5.
“It’s got it all: roller coasters, kid-friendly rides (bumper cars, a haunted mansion), swimming, camping, a mining museum, and even a championship 18-hole golf course,” TripAdvisor wrote. “The accommodating staff, clean facilities, and fun attractions make for a memorable family-friendly visit.”
Knoebels is the U.S.’s largest free-admission park, although tickets for individual rides cost a fee.
Pennsylvania
Pennsylvania Supreme Court ruling on cast vote records creates uncertainty for counties
-
Hawaii2 minutes agoFlorida woman dies in possible drowning in South Kona – West Hawaii Today
-
Idaho8 minutes agoPart of I84 Will Close This Week in Southern Idaho For Bridge and Ramp Work
-
Illinois14 minutes agoCapitol News Illinois | Judge delays decision on special prosecutor for ‘Operation Midway Blitz’
-
Indiana20 minutes agoHighlights of what President Trump said about Indiana football during White House visit
-
Iowa26 minutes agoKim Reynolds signs ‘Ember’s law’ increasing animal torture penalties
-
Kentucky38 minutes agoChase Matthew’s bassist Carsen Richards charged with child sex crimes after being arrested at Kentucky festival
-
Louisiana44 minutes agoLouisiana to redraw congressional map after court ruling
-
Maine50 minutes agoImmigrant rights coalition reports uptick in ICE detentions across Maine