PRINTER'S NO. 884
No. 784 Session of 1985
INTRODUCED BY BARBER, MANDERINO, PIEVSKY, LAUGHLIN, TRELLO,
OLIVER, COLE, HUTCHINSON, GEORGE, HARPER, SALOOM, WIGGINS,
PETRARCA, FRYER, RYBAK, MORRIS, FREEMAN, MRKONIC, PRATT,
RICHARDSON, F. E. TAYLOR, MANMILLER, MICOZZIE, CIVERA,
RAYMOND, DURHAM, LUCYK, ARTY, FREIND, KOSINSKI, BELARDI,
CAWLEY, TIGUE, KUKOVICH, GRUITZA, DORR, HAYES, RYAN, WILSON
AND E. Z. TAYLOR, APRIL 9, 1985
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 9, 1985
AN ACT
1 Amending the act of June 25, 1982 (P.L.633, No.181), entitled
2 "An act providing for independent oversight and review of
3 regulations, creating an Independent Regulatory Review
4 Commission, providing for its powers and duties, making
5 repeals and making an appropriation," further providing for
6 agency submissions of rulemaking and for time periods for
7 review of rulemaking; and making editorial changes.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 5, 6 and 7 of the act of June 25, 1982
11 (P.L.633, No.181), known as the Regulatory Review Act, amended
12 December 9, 1982 (P.L.1023, No.238), are amended to read:
13 Section 5. Proposed regulation; criteria for review, existing
14 regulations.
15 (a) For proposed regulations, submitted after the effective
16 date of this section, at the same time that proposed regulations
17 [and any changes thereto] are submitted to the Legislative
18 Reference Bureau for publication of notice of proposed
1 rulemaking in the Pennsylvania Bulletin as required by the act
2 of July 31, 1968 (P.L.769, No.240), referred to as the
3 Commonwealth Documents Law, the agency proposing the regulation
4 shall forward a copy of such proposal to the commission and the
5 designated standing committee of each House of the General
6 Assembly and additional information including but not limited to
7 the following:
8 (1) The name of the agency proposing the regulation and
9 a statement of the statutory or other authority under which
10 the regulation or change is proposed and if such regulation
11 or change is proposed to implement the requirements of
12 Federal statute or Federal regulation, such Federal statute
13 or regulation shall be cited with specificity.
14 (2) A brief explanation of the proposed regulation or
15 change.
16 (3) A statement of the need for the regulation or
17 change.
18 (4) Estimates of the direct cost to the Commonwealth and
19 direct and indirect cost to its political subdivisions and
20 indirect cost to the private sector. Insofar as the proposal
21 relates to direct cost to the Commonwealth, the agency may
22 submit in lieu of its own statement the fiscal note prepared
23 by the Office of the Budget pursuant to section 612 of the
24 act of April 9, 1929 (P.L.177, No.175), known as "The
25 Administrative Code of 1929."
26 (5) A statement of legal, accounting or consultant
27 procedures which may be required for implementation of the
28 regulation by those affected by it.
29 (6) A statement of any additional reporting,
30 recordkeeping or other paperwork required by the proposed
19850H0784B0884 - 2 -
1 regulations including copies of any forms or reports which
2 will be required in the implementation of the proposed
3 regulation.
4 (7) An outline of conformance and relevant dates
5 including dates by which comments must be received, dates of
6 proposed public hearings, the effective date of final
7 regulations, date by which compliance with the proposed
8 regulations will be required, including the date by which any
9 required permits, licenses or other approvals must be
10 obtained.
11 (8) The name of the author or authors of the regulation
12 with their office address and phone numbers included.
13 (9) An identification of the types of persons,
14 businesses and organizations which would be affected by the
15 regulation.
16 (10) Identification of any other regulations which would
17 be affected by the regulation.
18 The requirements of this section shall not diminish the Notice
19 of Proposed Rule Making requirements of the Commonwealth
20 Documents Law but the information required by this section may
21 be included in the Notice of Proposed Rule Making requirement
22 for publication in the Pennsylvania Bulletin in lieu of the
23 information required by paragraphs (2) and (3) of section 201 of
24 the Commonwealth Documents Law. The commission may waive an
25 information requirement of this section for a proposed
26 regulation when any specific requirement is deemed by the
27 commission to be unnecessary or inappropriate.
28 (b) In addition to the requirements of subsection (a), for
29 regulations which impose fiscal impacts on the public sector,
30 private sector, or both of over $1,000,000, in any year, or
19850H0784B0884 - 3 -
1 which impose other major impacts as determined by the
2 commission, the agency proposing the regulation shall forward at
3 the request of the commission a written regulatory analysis.
4 Such regulatory analysis shall state:
5 (1) the financial, economic and social impacts of the
6 regulation on individuals, business and labor communities or
7 other public and private organizations. When practicable, an
8 evaluation of the benefits expected as a result of the
9 regulation should be included;
10 (2) that alternative approaches have been considered and
11 the least burdensome acceptable alternative has been
12 selected;
13 (3) that, in arriving at the acceptable alternative,
14 consideration was given to minimizing new reporting,
15 accounting and legal requirements;
16 (4) that a plan for the evaluation of the effectiveness
17 of the regulation after its issuance has been developed; and
18 (5) the manner in which, when it is lawful, desirable
19 and feasible, special provisions have been developed to meet
20 the particular needs of affected groups and persons
21 including, but not limited to: minorities, elderly, small
22 businesses and farmers.
23 (c) The standing committee shall, within 20 calendar days
24 from the [day it receives] date the proposed regulation is
25 published in the Pennsylvania Bulletin, approve or [recommend
26 disapproval to the commission.] disapprove the proposed
27 regulation. The standing committee shall notify the commission
28 of approval or disapproval. Failure of both standing committees
29 to [recommend disapproval of any such] disapprove a regulation
30 within the 20 calendar days shall constitute approval thereof.
19850H0784B0884 - 4 -
1 Along with a notification of approval or disapproval the
2 committee shall convey a report which includes:
3 (1) A copy of the proposed regulation.
4 (2) A summary of the objections of the committee, if
5 any, stating the reasons why the committee has found the
6 proposed regulation unacceptable, and a copy of any staff
7 reports deemed pertinent by the committee.
8 In the event the standing committees are prevented from
9 completing their 20-day review because of expiration of the
10 legislative session in even-numbered years, consideration of the
11 proposed regulation shall be automatically suspended until the
12 [first day] fourth Monday in January of the next succeeding
13 session of the General Assembly. On that date, the agency shall
14 resubmit the proposed regulation to the designated standing
15 committee of each chamber, or its successor committee, and to
16 the commission. The standing committees, or their successor
17 committees, shall have 20 calendar days and the commission shall
18 have 30 calendar days from [receipt of] the date the proposed
19 regulation is published in the Pennsylvania Bulletin to review
20 such regulation. In computing the 20-day committee review period
21 and the 30-day commission review period, the number of days in
22 which the proposed regulation had been under review by the
23 standing committees and by the commission as of the expiration
24 of the prior session shall be subtracted from the 20-day
25 committee and the 30-day commission review periods,
26 respectively. Failure of the agency to resubmit the proposed
27 regulation on the [first day] fourth Monday in January of the
28 next succeeding session shall constitute withdrawal thereof. No
29 proposed regulation shall be submitted to the commission or the
30 standing committees for review during the period from the end of
19850H0784B0884 - 5 -
1 the legislative session of even-numbered years to the first day
2 of the next succeeding legislative session, but emergency
3 regulations may be adopted pursuant to the provisions of section
4 6(b).
5 (d) In order to ascertain whether a proposed regulation is
6 in the public interest, the commission shall consider the
7 following criteria in the review of any proposed regulation:
8 (1) Conformity to the statutory authority of the agency.
9 (2) Consistency with the legislative intent of the act
10 which the regulation is designed to implement.
11 (3) Possible adverse effects on prices of goods and
12 services, productivity or competition.
13 (4) Whether the regulation represents a policy decision
14 of such substantial nature that it requires a legislative
15 review.
16 (5) Direct costs to the Commonwealth, direct and
17 indirect cost to political subdivisions and indirect cost to
18 the private sector.
19 (6) Reasonableness of requirements, implementation
20 procedures and timetable for the public and private sectors.
21 (7) The nature of any reports, forms or other paperwork
22 and the estimated cost of their preparation by individuals,
23 businesses and organizations in the private and public sector
24 where such reports would be required.
25 (8) Possible conflict with or duplication of statutes or
26 other existing regulations.
27 (9) The nature and estimated cost of any legal,
28 consulting or accounting services which the private or public
29 sector would incur.
30 (10) The impact on the public interest of exempting or
19850H0784B0884 - 6 -
1 setting lesser standards of compliance for individuals or
2 small businesses when it is lawful, desirable and feasible to
3 do so.
4 (11) Clarity and lack of ambiguity.
5 (12) Need for the rule or regulation.
6 (13) Approval or disapproval by the designated standing
7 committee of the House of Representatives or the Senate.
8 (e) Regulations for which notice of proposed [making]
9 rulemaking is omitted pursuant to section 204 of the
10 Commonwealth Documents Law and regulations which are adopted
11 containing modifications to the proposed text as published under
12 section 202 of the Commonwealth Documents Law shall be submitted
13 to the commission and the designated standing committees for
14 review in the same fashion as proposed regulations at the same
15 time that the regulations are submitted to the Attorney General
16 for review as provided in the Commonwealth Attorneys Act. For
17 regulations which are adopted containing modifications to the
18 proposed text as published, the time period set forth in
19 subsection (c) shall begin to run from the date the standing
20 committee receives the modification. No final order adopting
21 such regulation shall be published until completion of review
22 pursuant to this act.
23 (f) The agency which proposes the regulation shall forward
24 to the commission within two days of receipt, a copy of any
25 comments received by the agency which refers to the proposed
26 regulation.
27 (g) The commission, either on its motion or on the request
28 of any individual, agency, corporation, member of the General
29 Assembly or any other entity which may be affected by a
30 regulation, may also review any existing regulation or
19850H0784B0884 - 7 -
1 administrative procedure. Whenever a committee of the Senate or
2 the House of Representatives shall request a review of a
3 regulation, the commission shall make such review and shall
4 assign it high priority. The commission may submit
5 recommendations to any agency recommending changes in existing
6 regulations where it finds the existing regulations or
7 administrative procedure to be contrary to the public interest
8 under the criteria established in this section. The commission
9 may also make recommendations to the General Assembly and the
10 Governor for statutory changes whenever it finds that any
11 existing regulation or procedure may be contrary to the public
12 interest.
13 Section 6. Procedures for commission consideration and agency
14 review.
15 (a) Whenever the commission shall find that a proposed
16 regulation submitted to the Legislative Reference Bureau for
17 publication of notice of proposed rulemaking in the Pennsylvania
18 Bulletin or that a regulation for which notice of proposed
19 rulemaking is omitted pursuant to section 204 of the act of July
20 31, 1968 (P.L.769, No.240), referred to as the Commonwealth
21 Documents Law, or a regulation which is adopted containing
22 modifications to the proposed text as published under section
23 202 of the Commonwealth Documents Law submitted to the Attorney
24 General for review prior to publication [without notice pursuant
25 to section 204 of the Commonwealth Documents Law,] may be
26 contrary to the public interest under the criteria set forth in
27 section 5, the commission shall notify the agency promulgating
28 such regulation of its finding. Such notification shall set
29 forth the commission's objections in reasonable detail. The
30 agency shall review the commission's finding and not later than
19850H0784B0884 - 8 -
1 two weeks following the notification unless the commission
2 grants extended time to comment shall respond to the commission
3 as to whether or not the proposed regulation will be withdrawn
4 [or], revised or returned in its original form with added
5 justification or documentation by the agency. If the commission
6 does not notify the agency of any objection within 30 days of
7 publication, in the case of proposed rulemaking, or within 30
8 days of receipt [under section 5], in the case of omission of
9 proposed rulemaking or in the case of modifications to the
10 proposed text as published, the agency may proceed to promulgate
11 the regulation as provided in the [act of July 31, 1968
12 (P.L.769, No.240), referred to as the] Commonwealth Documents
13 Law.
14 (b) The commission may, when notifying an agency of its
15 objections pursuant to subsection (a) or at any time following
16 such notification but prior to publication of a final order
17 adopting a regulation, issue an order barring the publication of
18 a final order adopting a regulation pending subsequent review of
19 the regulation in the manner provided in section 7. The
20 commission may not however issue an order against a proposed
21 regulation to the extent that the Attorney General certifies
22 that proposed regulation is required pursuant to the decree of
23 any court or to implement the provisions of a statute of the
24 United States or regulations issued thereunder by a Federal
25 agency nor shall the commission issue an order against a
26 proposed regulation when such regulation is transmitted with the
27 certification of the Governor that it is required to meet an
28 emergency which shall include but not be limited to conditions
29 which may cause a significant budget deficit or create need for
30 supplemental or deficiency appropriations. In such case, the
19850H0784B0884 - 9 -
1 regulation can take effect for up to 120 days but after that
2 time may be suspended by the commission unless it has been
3 approved by the General Assembly under the procedures contained
4 in section 7(b).
5 (c) Whenever a designated standing committee of the House of
6 Representatives or the Senate has notified the commission of its
7 disapproval and the commission approves the proposed regulation,
8 the commission shall notify the said designated standing
9 committee of such approval.
10 Section 7. Procedures and subsequent review.
11 (a) If the commission determines after reviewing an agency's
12 response that the agency still intends to implement such
13 regulation, the commission shall, [within seven days of] at its
14 next public meeting following receipt of an agency's response to
15 its objections or, if its next public meeting is less than seven
16 days from the date of receipt, at its second public meeting
17 following receipt of an agency's response to its objections,
18 either approve the regulations or, if the commission believes
19 that said regulation would be contrary to the public interest as
20 determined under section 5, notify the Governor, who shall
21 within 45 days review the proposed regulation and the commission
22 findings. Failure of the commission to notify the Governor of
23 its continued objections to a proposed regulation [within seven
24 days] by its next public meeting following receipt of an
25 agency's response or, if its next public meeting is less than
26 seven days from the date of receipt, at its second public
27 meeting following receipt of an agency's response shall
28 constitute approval thereof. Within seven days of an agency's
29 response, the commission may continue an order barring
30 publication of a final order adopting a regulation, issue such
19850H0784B0884 - 10 -
1 an order if none was previously issued, or withdraw its order.
2 (b) If the Governor and the agency determine that it is
3 desirable to implement the proposed regulation without
4 revisions, the Governor shall submit a report to the General
5 Assembly containing the findings of the commission, the response
6 of the initiating agency and his own recommendations regarding
7 the regulation. At the time of the submission of the report by
8 the Governor, the commission shall, within 14 days of submission
9 of the report, either approve the regulation or transmit the
10 proposed regulation to the General Assembly for consideration in
11 accord with the procedures set forth in the act of April 7, 1955
12 (P.L.23, No.8), known as the "Reorganization Act of 1955."
13 Failure of the commission to transmit a regulation to the
14 General Assembly for consideration within 14 days of submission
15 of the Governor's report shall constitute approval of the
16 proposed regulation. However, if the commission is prevented
17 from transmitting the regulation to the General Assembly within
18 14 days because of recess or adjournment, it may transmit the
19 regulation on the first subsequent session day. Failure to
20 submit a proposed regulation on the first subsequent session day
21 shall constitute approval thereof. Pending the review of a
22 regulation by the General Assembly, the commission may continue
23 an order barring publication of a final order adopting a
24 regulation, issue such an order if none was previously issued,
25 or withdraw its order. If the General Assembly disapproves a
26 regulation, the disapproval shall constitute a permanent order
27 barring publication, or shall rescind a regulation for which a
28 final order was published pending review of the regulation by
29 the commission or the General Assembly. The General Assembly may
30 at its discretion, however, disapprove a regulation to indicate
19850H0784B0884 - 11 -
1 the intent of the General Assembly, but permit publication of a
2 final order adopting a regulation.
3 (c) Whenever a designated standing committee has received
4 the notice required under section 6(c), the designated standing
5 committee may within ten days report to the House of
6 Representatives or Senate a concurrent resolution and notify the
7 affected agency which shall be the official notice to the
8 agency. A final order adopting the regulation shall not be
9 published for 30 calendar days or ten legislative days,
10 whichever is longer, from date of reporting the concurrent
11 resolution. If both the House of Representatives and the Senate
12 agree to the concurrent resolution within the allotted time
13 period, the adoption of the concurrent resolution shall
14 constitute a permanent order barring publication, or shall act
15 as an order rescinding a regulation for which a final order was
16 published pending review of the regulation. Failure of the House
17 of Representatives and the Senate to act on the concurrent
18 resolution within the allotted time period shall constitute
19 approval of the regulation. In addition, notice as to any final
20 disposition of any concurrent resolution considered in
21 accordance with this act shall be published in the Pennsylvania
22 Bulletin. The General Assembly may, at its discretion, adopt a
23 concurrent resolution disapproving the regulation to indicate
24 the intent of the General Assembly, but permit publication of a
25 final order adopting a regulation.
26 Section 2. This act applies to proposed and final rulemaking
27 submitted to the Legislative Reference Bureau after the first
28 Wednesday following the effective date of this act.
29 Section 3. This act shall take effect in 60 days.
C8L02VDL/19850H0784B0884 - 12 -