PRINTER'S NO. 4087
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2661
Session of
2020
INTRODUCED BY PUSKARIC, JULY 8, 2020
REFERRED TO COMMITTEE ON JUDICIARY, JULY 8, 2020
AN ACT
Amending Title 42 (Judiciary and Judicial Procedure) of the
Pennsylvania Consolidated Statutes, in particular rights and
immunities, providing for immunity for regulatory compliance.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 42 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 8340.4. Immunity for regulatory compliance.
(a) Purpose.--The purpose of this section is to assure that
the Commonwealth's civil justice system is congruent with
applicable regulatory systems and that these two principal areas
of law do not work at cross purposes.
(b) Conditions for immunity.--A manufacturer or seller of a
product is not subject to liability as a matter of law for the
product if:
(1) Either of the following is satisfied:
(i) the product alleged to have caused the harm was
designed, manufactured, packaged, labeled, sold or
represented in relevant and material respects in
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accordance with the terms of an approval, license or
similar determination of a government agency; or
(ii) the product was in compliance with a statute of
this Commonwealth or the United States, or a standard,
rule, regulation, order or other action of a government
agency pursuant to statutory authority, where the statute
or standard, rule, regulation, order or other action is
relevant to the event or risk allegedly causing the harm
and the product was in compliance at the time the product
left the control of the manufacturer or seller.
(2) (i) The act or transaction forming the basis of the
claim involves terms of service, contract provisions,
representations or other practices authorized by, or in
compliance with, the rules, regulations, standards or
orders of, or a statute administered by, a government
agency.
(ii) This paragraph shall not apply to a product
that departs from its intended design due to a flaw
created during the manufacturing process, even though the
product manufacturer or seller has complied with all
applicable Federal and State standards or regulations.
(c) Nonapplicability.--This section does not apply if the
claimant establishes that the manufacturer or seller at any time
before the event that allegedly caused the harm:
(1) sold the product or service after the effective date
of an order of a government agency to remove the product or
service from the market to withdraw its approval or to
substantially alter its terms of approval in a manner that
would have avoided the claimant's alleged injury;
(2) intentionally and in violation of applicable
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regulations withheld from or misrepresented to the government
agency information material to the approval or maintaining of
approval of the product or service and the information is
relevant to the harm which the claimant allegedly suffered;
or
(3) made an illegal payment to an official or employee
of a government agency for the purpose of securing or
maintaining approval of the product or service.
(d) Construction.--Nothing in this section shall be
construed to:
(1) expand the authority of a State agency or agent of a
State agency to adopt or promulgate standards or regulations
where no such authority previously existed;
(2) reduce the scope of a limitation on liability based
on compliance with the rules or regulations of a government
agency applicable to a specific act, transaction, person or
industry; or
(3) affect the liability of a service provider based on
rates filed with and reviewed or approved by a government
agency.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Clear and convincing evidence." A measure or degree of
proof that will produce in the mind of the trier of fact a firm
belief or conviction as to the allegations sought to be
established and which level of proof is greater than a mere
preponderance of the evidence, but less than proof beyond a
reasonable doubt.
"Government agency." The Commonwealth or the United States,
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or an agency of either of them, or an entity vested with the
authority of the Commonwealth or the United States to issue
rules, regulations, orders or standards concerning the design,
manufacture, packaging, labeling or advertising of a product or
provision of a service.
"Manufacturer." A person that:
(1) Is engaged in a business to produce, create, make or
construct a product or component part of a product.
(2) Either:
(i) designs, manufactures or formulates the product
or component part of the product; or
(ii) has engaged another person to design,
manufacture or formulate the product or component part of
the product.
"Product." An object that:
(1) Possesses intrinsic value, capable of delivery
either as an assembled whole or as a component part or parts.
(2) Is produced for introduction into trade or commerce.
"Seller." A person that in the course of a business
conducted for that purpose:
(1) sells, distributes, rents, leases, prepares, blends,
packages, labels or otherwise is involved in placing a
product or service in the stream of commerce; or
(2) installs, repairs, refurbishes, reconditions, or
maintains a product.
"Service." An activity engaged in for another person for a
consideration which activity involves predominantly the
performance of a service as distinguished from manufacture or
sale of a product and that is regulated, approved or licensed by
a government agency. The term includes a financial service and
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the provision of insurance.
Section 2. This act shall take effect in 60 days.
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