PRINTER'S NO. 1
No. 1 Session of 1981
INTRODUCED BY HAGER, ZEMPRELLI, JUBELIRER, MESSINGER, SCANLON,
ROMANELLI, KELLEY, STAUFFER, MOORE, TILGHMAN, HESS, PRICE,
STREET, CORMAN, PECORA, DWYER, FISHER, HOLL, MANBECK,
GREENLEAF, O'CONNELL, HOPPER, HELFRICK, RHOADES, HOWARD,
SHAFFER, GEKAS, SMITH, LOEPER, ROSS, LINCOLN AND KUSSE,
JANUARY 8, 1981
REFERRED TO STATE GOVERNMENT, JANUARY 8, 1981
AN ACT
1 Providing for independent oversight and review of regulations,
2 creating an Independent Regulatory Review Commission,
3 providing for its powers and duties, and making a repeal.
4 TABLE OF CONTENTS
5 Section 1. Short title.
6 Section 2. Legislative intent.
7 Section 3. Definitions.
8 Section 4. Creation of commission; membership,
9 compensation; vacancies; removal.
10 Section 5. Proposed regulation; criteria for review,
11 existing regulations.
12 Section 6. Procedures for commission consideration and
13 agency review.
14 Section 7. Procedures and subsequent review.
15 Section 8. Regulatory budget.
16 Section 9. Commission staff.
1 Section 10. Subpoena power.
2 Section 11. Rules; annual reports.
3 Section 12. Clearing house.
4 Section 13. Budget; assessments.
5 Section 14. Repeal.
6 Section 15. Transition.
7 Section 16. Effective date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the "Regulatory
12 Review Act."
13 Section 2. Legislative intent.
14 The General Assembly has enacted a large number of statutes
15 conferring on boards, commissions, departments and other
16 agencies of the executive branch of government the authority to
17 adopt rules and regulations to supplement and implement those
18 statutes. The General Assembly has found that this delegation of
19 its authority has resulted in regulations being promulgated
20 without effective review concerning cost benefits, duplication,
21 inflationary impact and conformity to legislative intent. The
22 General Assembly finds that it must provide a procedure for
23 oversight and review of regulations adopted pursuant to this
24 delegation of legislative power to curtail excessive regulation
25 and to establish a system of accountability whereby the
26 bureaucracy must justify its use of the regulatory authority
27 before imposing hidden costs upon the economy of Pennsylvania.
28 It is the intent of this act to establish a method for
29 continuing and effective review, accountability and oversight.
30 It is the further intent of this act to provide for primary
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1 review by a commission with sufficient authority, expertise,
2 independence and time to perform that responsibility. It is the
3 further intent of this act to provide ultimate review by the
4 General Assembly of those regulations identified to be more
5 costly to the public than public benefit would justify.
6 Section 3. Definitions.
7 The following words and phrases when used in this act shall
8 have, unless the context clearly indicates otherwise, the
9 meanings given to them in this section:
10 "Agency." Any department, departmental administrative board
11 or commission, independent board or commission, agency or other
12 authority of this Commonwealth now existing or hereafter
13 created, but shall not include the Senate or the House of
14 Representatives, the Pennsylvania Fish Commission, the
15 Pennsylvania Game Commission or any court, political
16 subdivision, municipal or local authority.
17 "Commission." The Independent Regulatory Review Commission.
18 "Regulation." Any regulation, proposed or adopted by an
19 agency. The term shall not include a proclamation, executive
20 order, directive or similar document promulgated by the
21 Governor, but shall include a regulation which may be
22 promulgated by an agency, only with the approval of the
23 Governor.
24 Section 4. Creation of commission; membership, compensation;
25 vacancies; removal.
26 (a) The Independent Regulatory Review Commission shall
27 consist of five members to be known as commissioners. One member
28 of the commission shall be appointed by the Governor, one by the
29 President pro tempore of the Senate, one by the Speaker of the
30 House of Representatives, one by the Minority Leader of the
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1 Senate and one by the Minority Leader of the House of
2 Representatives.
3 (b) Of the original members, the member appointed by the
4 Governor shall serve for an initial term of one year, the two
5 members appointed by the Speaker of the House and the Minority
6 Leader of the House of Representatives respectively shall serve
7 for an initial term of two years and the two members appointed
8 by the President pro tempore of the Senate and the Minority
9 Leader of the Senate respectively shall serve for an initial
10 term of three years. Thereafter each appointment provided for by
11 this act shall be for a term of three years and such
12 appointments shall be made in the same manner as the original
13 appointments.
14 (c) All vacancies shall be filled, for the remainder of the
15 unexpired term, in the same manner as original appointments. Any
16 commissioner, upon the expiration of his term, shall continue to
17 hold office until his successor shall be appointed.
18 (d) The commissioners shall receive $125 per day as
19 compensation for their services. The commissioners shall also be
20 entitled to reimbursement for travel and other necessary
21 expenses incurred as a result of their duties as members of the
22 commission. The expenses incurred by the commissioners, or by
23 any employees of the commission, shall be allowed and paid on
24 the presentation of itemized vouchers therefor, which vouchers
25 shall be subject to the approval of the commission.
26 (e) Except as authorized pursuant to this section, no
27 commissioner may be removed from office during his term. The
28 Governor may, with the approval of two-thirds of the members of
29 the Senate, upon a clear and convincing evidence of misfeasance
30 or malfeasance in office or neglect of duty, remove a
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1 commissioner prior to the expiration of the term. The Governor
2 shall provide the commissioner so removed with a detailed
3 written statement of the reasons for his removal.
4 (f) Within one month following the appointment of a quorum
5 of the commission, the Governor shall convene an organization
6 meeting of the commission and shall preside at such meeting
7 until a chairman shall be elected.
8 (g) A chairman shall be elected by the commission who shall
9 serve for a term of two years and until his successors shall be
10 elected. The chairman shall preside at meetings of the
11 commission and shall execute documents relating to the formal
12 actions of the commission.
13 Section 5. Proposed regulation; criteria for review, existing
14 regulations.
15 (a) For proposed regulations, submitted after September 1,
16 1981, at the same time that proposed administrative regulations
17 and changes thereto are submitted to the Department of Justice
18 for review as to legality as provided by the act of July 31,
19 1968 (P.L.769, No.240), referred to as the Commonwealth
20 Documents Law, the agency proposing the regulation shall forward
21 a copy of such proposal to the commission. When an agency shall
22 transmit a copy of proposed regulations to the commission, it
23 shall with such proposal transmit the following:
24 (1) A statement of the statutory or other authority
25 under which the administrative regulation or change is
26 proposed and if such administrative regulation or change is
27 proposed to implement the requirements of Federal statute or
28 Federal regulation, such Federal statute or regulation shall
29 be cited with specificity.
30 (2) A brief explanation of the proposed regulation or
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1 change.
2 (3) A statement of the need for the regulation or
3 change.
4 (4) Cost benefit estimates including direct cost to the
5 Commonwealth and direct and indirect cost to its political
6 subdivisions and indirect cost to the private sector. Insofar
7 as the proposal relates to direct cost to the Commonwealth,
8 the agency may submit in lieu of its own statement the fiscal
9 note prepared by the Office of the Budget pursuant to section
10 612 of the act of April 9, 1929 (P.L.177, No.175), known as
11 "The Administrative Code of 1929."
12 (5) A statement of legal accounting or consultant
13 procedures which may be required for implementation of the
14 regulation by those effected by it.
15 (6) Copies of any forms or reports which will be
16 required in the implementation of the proposed regulation.
17 (7) An outline of conformance or approval timetables and
18 administrative procedures.
19 (8) The name of the author or authors of the regulation
20 with their office address and phone numbers included.
21 (9) An identification of the individuals, businesses and
22 organization which would be affected by the regulation.
23 (10) Identification of any other regulations which would
24 be effected by the regulation.
25 The requirements of this section shall not diminish the Notice
26 of Proposed Rule Making requirements of the Commonwealth
27 Documents Law but the information required by this section may
28 be included in the Notice of Proposed Rule Making requirement
29 for publication in the Pennsylvania Bulletin in lieu of the
30 information required by paragraphs (2) and (3) of section 201 of
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1 the Commonwealth Documents Law. The commission may waive an
2 information requirement of this section for a proposed
3 regulation when any specific requirement is deemed by the
4 commission to be unnecessary or inappropriate.
5 (b) 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
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1 setting lesser standards of compliance for individuals or
2 small businesses.
3 (11) Clarity and lack of ambiguity.
4 (12) Need for the rule or regulation.
5 (c) The commission, either on its motion or on the request
6 of any individual, agency, corporation, member of the General
7 Assembly or any other entity which may be affected by a
8 regulation, may also review any existing regulation or
9 administrative procedure. The commission may submit
10 recommendations to any agency recommending changes in existing
11 regulations where it finds the existing regulations or
12 administrative procedure to be contrary to the public interest
13 under the criteria established in this section. The commission
14 may also make recommendations to the General Assembly and the
15 Governor for statutory changes whenever it finds that any
16 existing regulation or procedure is contrary to the public
17 interest and where the agency promulgating the regulation or
18 carrying out the administrative procedure has refused to alter
19 such regulation or procedure.
20 Section 6. Procedures for commission consideration and agency
21 review.
22 (a) Whenever the commission shall find that a proposed
23 regulation is contrary to the public interest under the criteria
24 set forth in section 5, the commission shall notify the agency
25 promulgating such regulation of its finding. Such notification
26 shall set forth the commission's objections in reasonable
27 detail. The agency shall review the commission's finding and not
28 later than two weeks following the notification shall respond to
29 the commission as to whether or not the proposed or new
30 regulation will be withdrawn or revised. If the commission does
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1 not notify the agency of any objection within 30 days, the
2 agency may proceed to promulgate the regulation as provided in
3 the act of July 31, 1968 (P.L.769, No.240), referred to as the
4 Commonwealth Documents Law.
5 (b) The commission may, at any time, issue an order barring
6 the final publication of a proposed regulation for up to 120
7 days. The commission may not however issue an order against a
8 proposed regulation to the extent that the Attorney General
9 certifies that proposed regulation is required to implement the
10 provisions of a statute of the United States or regulations
11 issued thereunder by a Federal agency nor shall the commission
12 issue an order against a proposed regulation when such
13 regulation is transmitted with the certification of the Governor
14 that it is required to meet an emergency. In such case, the
15 regulation can take effect for up to 120 days but after that
16 time may be suspended by the commission unless it has been
17 approved by the General Assembly under the procedures contained
18 in section 7(b).
19 Section 7. Procedures and subsequent review.
20 (a) If the commission determines after reviewing an agency's
21 response that the agency still intends to implement such
22 regulation and if the commission believes that said regulation
23 would be contrary to the public interest as determined under
24 section 5, the commission shall notify the Governor, who shall
25 within 45 days review the proposed regulation and the commission
26 findings.
27 (b) If the agency still wishes to implement the proposed
28 regulation without revisions, the Governor shall submit a report
29 to the General Assembly containing the findings of the
30 commission, the response of the initiating agency and his own
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1 recommendations regarding the regulation. At the time of the
2 submission of the report by the Governor, the proposed
3 regulation shall be transmitted to the General Assembly and
4 shall be considered in accord with the procedures set forth in
5 the act of April 7, 1955 (P.L.23, No.8), known as the
6 "Reorganization Act of 1955."
7 Section 8. Regulatory budget.
8 The commission shall review the feasibility of establishing
9 for the Commonwealth procedures for the annual adoption of a
10 regulatory budget or regulatory calendar which would include
11 direct government cost ceilings, indirect cost ceilings for new
12 regulation, private sector regulatory activity required under
13 existing regulations and private sector regulatory activity for
14 proposed new regulations. The commission will be required to
15 submit its findings and recommendations to the General Assembly
16 along with draft legislation if appropriate, within two years of
17 its original organization meeting.
18 Section 9. Commission staff.
19 The commission shall appoint and fix the compensation of an
20 executive director, who shall devote his full time to the
21 general supervision of all the affairs of the commission. In
22 addition, the commission shall appoint a general counsel who
23 shall not be subject to the supervision of the Attorney General
24 or the General Counsel and it may appoint and fix the
25 compensation of such other employees as the commission may from
26 time to time find necessary for the proper performance of the
27 functions of the commission.
28 Section 10. Subpoena power.
29 The commission may require the attendance and testimony of
30 witnesses and the production of documentary evidence relative to
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1 any investigation or hearing which the commission may conduct in
2 accordance with the powers granted it under this act. Such
3 subpoena shall be signed by the chairman or the executive
4 director and it shall be served by any person authorized to
5 serve subpoenas under the law of the Commonwealth.
6 Section 11. Rules; annual reports.
7 (a) The commission shall compile and publish rules for the
8 conduct of meetings and public hearings and for the conduct of
9 business under this act. Such rules shall be promulgated in
10 accordance with the procedures established in the act of July
11 31, 1968 (P.L.769, No.240), referred to as the Commonwealth
12 Documents Law.
13 (b) On or before April 1, 1982 and each year thereafter, the
14 commission shall file a report of its activities for the prior
15 calendar year with the Governor and the General Assembly.
16 Section 12. Clearing house.
17 (a) The commission shall act as a clearing house for
18 complaints, comments and other input from members of the General
19 Assembly and from the public regarding regulations, proposed
20 regulations and administrative procedures. The commission shall
21 maintain accurate records regarding complaints and comments it
22 receives and shall maintain such records by departmental and
23 subject matter categories. When the commission files its annual
24 report as provided by section 11, the commission shall include
25 within it a summary of public complaint and comment along with
26 any recommendations the commission may offer for statutory
27 change as the result of public complaint and comment.
28 (b) The commission shall also compile information on
29 regulations issued by the United States Government which are
30 found by the commission to be excessive. The commission shall
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1 include a summary on such regulations in its annual report. The
2 section of the annual report relating to excessiveness of
3 Federal regulations shall be submitted to the President of the
4 United States and to the members of the United States Senate and
5 the United States House of Representatives from Pennsylvania.
6 Section 13. Budget; assessments.
7 (a) The commission shall submit a proposed budget for each
8 fiscal year to the General Assembly by March 15. If the General
9 Assembly fails to approve the commission's budget by June 1, the
10 commission shall allocate costs on the basis of the last
11 approved operating budget. At such time as the General Assembly
12 approves the proposed budget, the commission shall have the
13 authority to make an adjustment in the allocations to reflect
14 the approved budget. For the fiscal year beginning July 1, 1981,
15 the commission shall submit a proposed budget by June 1, 1981,
16 which shall be deemed approved if the General Assembly fails to
17 act on it by July 1, 1981.
18 (b) For the fiscal year beginning July 1, 1981 and
19 thereafter the commission shall have the power to allocate among
20 the agencies covered by this act the cost of administering this
21 act or any part thereof. The commission shall provide by rule
22 for the method of such allocation.
23 Section 14. Repeal.
24 Section 812.2 of the act of April 9, 1929 (P.L.177, No.175),
25 known as "The Administrative Code of 1929," is repealed.
26 Section 15. Transition.
27 (a) All regulations issued by agencies between the date of
28 enactment and the general effective date of this act shall be
29 reviewable by the commission and may be suspended by the
30 commission if found to be contrary to the public interest under
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1 the criteria contained in section 5(b).
2 (b) Per diem and expenses of commissioners for the period
3 between the date of appointment and July 1, 1981, shall be paid
4 from appropriations made to the respective appointing
5 authorities of the commission.
6 Section 16. Effective date.
7 Except for the provisions of sections 3, 4, 9, 11 and 13,
8 which shall take effect immediately, this act shall take effect
9 July 1, 1981. This act shall expire on December 31, 1985 unless
10 it is sooner reenacted by the General Assembly.
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