Regular Session 2021-2022 House Bill 2385 P.N. 3085

PRINTER'S NO. 3085

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2385

Session of

2022

INTRODUCED BY LABS, ROWE, THOMAS, FARRY, GROVE, KEEFER,

N. NELSON, ROTHMAN, STAATS, TOPPER AND ZIMMERMAN, MAY 4, 2022

REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 4, 2022

AN ACT

Establishing the Regulatory Sandbox Program; and providing for

agency applications for participation in Regulatory Sandbox

Program, for duties of Independent Regulatory Review

Commission, for authority of approved agencies and for permit

applications by regulated persons for regulatory sandbox

permits.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Regulatory

Sandbox Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency." As defined in section 3 of the Regulatory Review

Act.

"Agency application." An application made by an agency to

the commission under section 4(a).

"Alternate protective measure." A measure taken by a holder

of a regulatory sandbox permit in lieu of compliance with a

regulation which has been waived as applicable to the holder

under section 5(b).

"Approved agency." An agency which has been approved for

participation in the program under section 4(f).

"Commission." The Independent Regulatory Review Commission.

"Permit." An authorization issued by an agency to perform an

activity regulated by the agency. The term does not include a

certification, registration or license.

"Permit application." An application made by a regulated

person to an approved agency under section 6(a).

"Program." The Regulatory Sandbox Program established under

section 3(a).

"Regulated person." A person that engages in an activity or

proposes to engage in an activity which is regulated by an

approved agency.

"Regulation." As defined in section 3 of the Regulatory

Review Act.

"Regulatory Review Act." The act of June 25, 1982 (P.L.633,

No.181), known as the Regulatory Review Act.

"Regulatory sandbox permit." A permit, permit modification,

supplemental permit or permit amendment issued by an approved

agency under the program.

Section 3. Regulatory Sandbox Program.

(a) Establishment.--The Regulatory Sandbox Program is

established within the Independent Regulatory Review Commission.

(b) Duties.--The commission shall have the following duties:

(1) Receive agency applications to participate in the

program under section 4(a).

(2) Review agency applications under section 4(e).

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(3) Approve or disapprove agency applications under

section 4(f).

of this section, the commission shall transmit a notice to the

Legislative Reference Bureau for publication in the Pennsylvania

Bulletin, which shall include all of the following information:

(1) A notification that this act has become a law of

this Commonwealth.

(2) A summary of the provisions of this act, including a

list of the agencies which may submit an agency application

under section 4(a).

(3) For each agency listed under paragraph (2), the

contact information for each agency's point of contact under

subsection (d)(2).

(4) A notification that an individual or entity may

submit a request to an agency under subsection (d)(4) to

establish an initiative to issue regulatory sandbox permits.

(d) Initial duties.--No later than 30 days after the

effective date of this section, an agency shall do all of the

following:

(1) Designate an official or employee of the agency to

serve as the liaison between the agency and the commission

for the purposes of this act. The agency shall notify the

commission of the name and contact information for the

designated liaison.

(2) Designate an official or employee of the agency to

serve as the point of contact between the agency and

regulated persons that are seeking information on a

regulatory sandbox permit or apply for a regulatory sandbox

permit. A point of contact under this paragraph shall provide

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support to an individual or entity that is seeking the

establishment of a regulatory sandbox program for the agency.

(3) Establish an intra-agency task force composed of

officials or employees of the agency to receive information

from an individual or entity under paragraph (4).

(4) Establish a publicly accessible method for an

individual or entity to submit a request that an agency

establish an initiative to provide regulatory sandbox

permits, including supporting information from the individual

or entity.

(e) Review by agencies.--An agency shall review all permits

issued by the agency and consider whether the public interest

would be served by the agency submitting an agency application

under section 4(a). The agency's review under this subsection

shall include a consideration of supporting information

submitted by an individual or entity under subsection (d)(4).

Section 4. Agency applications for participation in program.

(a) Submission of agency application.--An agency may submit

an agency application to the commission to participate in the

program in accordance with this section.

(b) Contents of agency application.--An agency shall include

all of the following information in an agency application under

subsection (a):

(1) The title of the agency and the names, office

addresses and telephone numbers of the agency officials

responsible for responding to questions regarding the agency

application or for receiving comments relating to the agency

application.

(2) The deputate, division, bureau, office or other

division of the agency which will administer the proposed

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regulatory sandbox permit.

(3) A concise and, when possible, nontechnical

explanation of the proposed regulatory sandbox permit.

(4) A statement of the need for the regulatory sandbox

permit.

(5) A list of permits which would be eligible for

replacement, modification, supplementing or amendment through

the proposed regulatory sandbox permit.

(6) A list of regulations which would be waived to the

extent applicable to a holder of a regulatory sandbox permit.

(7) A review of the alternate protective measures which

the agency proposed to apply to a holder of a regulatory

sandbox permit in lieu of the regulations proposed to be

waived under paragraph (6).

(8) Whether the agency application is being made as a

result of a request under section 3(d)(4).

(9) Estimates of any direct costs, indirect costs,

direct savings and indirect savings to the Commonwealth, to

its political subdivisions and to the private sector as a

result of the proposed regulatory sandbox permit.

(10) An identification of the types of regulated persons

who would be eligible to apply for the proposed regulatory

sandbox permit.

(11) An identification of the financial, economic and

social impact of the proposed regulatory sandbox permit on

individuals, small businesses, business and labor communities

and other public and private organizations and, when

practicable, an evaluation of the benefits expected as a

result of the regulation.

(12) A description of the plan developed for evaluating

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the continuing effectiveness of the regulatory sandbox permit

after its implementation.

(1) On the day that an agency submits an agency

application under subsection (a), the agency shall submit a

notice of the submission to the standing committee of the

Senate and the House of Representatives which is designated

as having jurisdiction over the agency under the Regulatory

Review Act.

(2) If the agency submits an agency application under

subsection (a) after the adjournment sine die or expiration

of the legislative session in an even-numbered year and

before the President pro tempore of the Senate or the Speaker

of the House of Representatives designates the jurisdiction

of standing committees of the Senate and the House of

Representatives under the Regulatory Review Act, the agency

shall submit a notice of the submission to each member of the

Senate and the House of Representatives on the day that the

agency submits an agency application.

(d) Public comment period.--The commission shall receive

public comments on an agency application beginning with the

submission of an agency application under subsection (a).

(e) Review of applications by commission.--Upon receipt of

an agency application under subsection (a), the commission shall

review the agency application and shall consider whether the

agency application is sufficient and in the public interest. The

commission shall apply the same standards for review under this

subsection that are applied for a review of whether a proposed,

final-form, final-omitted or existing regulation is in the

public interest under section 5.2 of the Regulatory Review Act.

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(f) Approval or disapproval.--If the commission determines

that an agency application under subsection (a) meets the

requirements under subsection (e), the commission shall approve

the agency application. The commission shall have until its next

scheduled meeting which occurs no less than 30 days after

receipt of an agency application to approve or disapprove the

agency application.

(g) Notice of approval.--

(1) No later than seven days after the commission's

approval of an agency application under subsection (f), the

approved agency shall submit a notice of the approval to the

standing committee of the Senate and House of Representatives

which is designated as having jurisdiction over the agency

under the Regulatory Review Act.

(2) If the commission approves an agency application

under subsection (e) after the adjournment sine die or

expiration of the legislative session in an even-numbered

year and before the President pro tempore of the Senate or

the Speaker of the House of Representatives designates the

jurisdiction of standing committees of the Senate and the

House of Representatives under the Regulatory Review Act, the

approved agency shall submit a notice of the approval to each

member of the Senate and the House of Representatives.

Section 5. Authority of approved agencies.

(a) Issuance of regulatory sandbox permits.--An approved

agency may issue a regulatory sandbox permit to an applicant in

accordance with the proposed regulatory sandbox permit in the

application.

(b) Waiver of regulations.--An approved agency may waive

regulations of the approved agency as applied to a holder of a

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regulatory sandbox permit.

require that a holder of a regulatory sandbox permit meet

alternate protective measures which meet the same protective

purposes as the regulations waived under subsection (b). A

violation of the alternate protective measures under this

subsection by the holder of a regulatory sandbox permit shall

subject the holder to the same penalties as a violation of the

regulations waived under subsection (b).

(d) Contents of regulatory sandbox permit.--An approved

agency shall include all of the following information in a

regulatory sandbox permit:

(1) The permit type which the regulatory sandbox permit

replaces, modifies, supplements or amends.

(2) If applicable, an identification of a permit

previously issued by the approved agency which is replaced,

modified, supplemented or amended by the regulatory sandbox

permit.

(3) A list of regulations which are waived as applicable

to the holder of the regulatory sandbox permit.

(4) The alternate protective measures which the approved

agency applies to the holder of the regulatory sandbox permit

in lieu of the regulations waived under paragraph (3).

(5) The signature of the head of the approved agency or

the head of the deputate, division, bureau, office or other

division of the approved agency which submitted the agency

application under section 4(a).

Section 6. Permit applications by regulated persons for

regulatory sandbox permits.

(a) Submission of permit application.--A regulated person

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may submit a permit application to an approved agency for a

regulatory sandbox permit.

(b) Contents of permit application.--A person shall include

all of the following in a permit application under subsection

(a):

(1) The permit which the regulatory sandbox permit

replaces, modifies, supplements or amends.

(2) The regulations, in whole or in part, that the

applicant proposes to be exempt from in the permit

application.

(3) The benefits of the permit application to the

Commonwealth, the entities which engage in the regulated

activity and the public.

(4) The alternate protective measures that the applicant

proposes in the permit application to the Commonwealth.

receives a permit application under subsection (a) shall review

the permit application.

(d) Approval or disapproval.--

(1) If the deputate, division, bureau, office or other

division of the agency which submitted the agency application

under section 4(a) determines that a permit application under

subsection (a) includes sufficient alternate protective

measures to meet the same protective purposes as the

regulations waived under section 5(b), the approved agency

may approve the permit application under subsection (a) and

issue a regulatory sandbox permit to the applicant.

(2) If a permit application under subsection (a) does

not meet the requirements of paragraph (1), the approved

agency shall disapprove the permit application. The approved

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agency shall notify the applicant of the reasons for the

disapproval under this paragraph and shall provide an

opportunity for the applicant to resubmit a permit

application under subsection (a) for a regulatory sandbox

permit.

(e) Notice of approval.--No later than seven days after

approving a permit application under subsection (d), the

approved agency shall submit a notice of the approval to the

standing committee of the Senate and House of Representatives

which is designated as having jurisdiction over the agency under

the Regulatory Review Act.

(f) Applicability.--A requirement for notice, public

comment, public hearing, appeal, review or expiration which

applies to a permit shall apply to a regulatory sandbox permit.

(g) Expiration.--An approved agency may not approve a permit

application under subsection (a) after October 31, 2024.

Section 7. Reports to General Assembly.

(a) Monthly reports.--No later than the 15th day of each

month, an approved agency shall submit a report to each member

of the General Assembly. The approved agency shall include all

of the following information in the report:

(1) The number of permit applications for regulatory

sandbox permits under section 6(a) received by the approved

agency in the prior month.

(2) The total number of permit applications for

regulatory sandbox permits under section 6(a) received by the

approved agency since the agency was approved under section

4(f).

(3) The total number of permit applications for

regulatory sandbox permits which were approved by the

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approved agency under section 6(d)(1) in the prior month.

(4) The total number of permit applications for

regulatory sandbox permits which were approved by the

approved agency under section 6(d)(1) since the agency was

approved under section 4(f).

(5) The total number of permit applications for

regulatory sandbox permits which were denied by the approved

agency under section 6(d)(2) in the prior month.

(6) The total number of applications for regulatory

sandbox permits which were denied by the approved agency

under section 6(d)(2) since the agency was approved under

section 4(f).

(7) For the regulatory sandbox permits under paragraph

(3), a list of the regulations waived under section 5(b) and

a review of the alternate protective measures which are

applicable to each holder of the regulatory sandbox permits.

(8) For the regulatory sandbox permits under paragraph

(5), a list of the regulations requested to be waived under

section 5(b) and a review of the proposed alternate

protective measures in each permit application.

(b) Final report.--No later than November 30, 2024, an

approved agency shall submit a final report to the standing

committee of the Senate and House of Representatives which is

designated as having jurisdiction over the agency under the

Regulatory Review Act. The approved agency shall include all of

the following information in the final report:

(1) The total number of permit applications for

regulatory sandbox permits under section 6(a) received by the

approved agency.

(2) The total number of permit applications for

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regulatory sandbox permits which were approved by the

approved agency under section 6(d)(1).

(3) The total number of permit applications for

regulatory sandbox permits which were denied by the approved

agency under section 6(d)(2).

(4) For the regulatory sandbox permits under paragraph

(2), a list of the regulations waived under section 5(b) and

a review of the alternate protective measures which are

applicable to the holders of each regulatory sandbox permit.

(5) For the regulatory sandbox permits under paragraph

(3), a list of the regulations requested to be waived under

section 5(b) and a review of the proposed alternate

protective measures in each permit application.

Section 8. Effective date.

This act shall take effect immediately.

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