Regular Session 2017-2018 Senate Bill 0977 P.N. 1421

PRIOR PRINTER'S NO. 1363

PRINTER'S NO. 1421

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

977

Session of

2017

INTRODUCED BY GORDNER, SCARNATI, MENSCH, VOGEL, FOLMER, WARD,

STEFANO, RAFFERTY, BARTOLOTTA, RESCHENTHALER, SCAVELLO,

WAGNER AND WHITE, DECEMBER 6, 2017

SENATOR CORMAN, RULES AND EXECUTIVE NOMINATIONS, AS AMENDED,

JANUARY 22, 2018

AN ACT

Amending the act of June 25, 1982 (P.L.633, No.181), entitled

"An act providing for independent oversight and review of

regulations, creating an Independent Regulatory Review

Commission, providing for its powers and duties and making

repeals," further providing for definitions, for proposed

regulations and procedures for review, for final-form

regulations and final-omitted regulations and procedures for

review and for procedures for subsequent review of

disapproved final-form or final-omitted regulations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 3 of the act of June 25, 1982 (P.L.633,

No.181), known as the Regulatory Review Act, is amended by

adding definitions to read:

Section 3. Definitions.

The following words and phrases when used in this act shall

have, unless the context clearly indicates otherwise, the

meanings given to them in this section:

* * *

"Committee chairperson." Any of the following:

(1) The Senator appointed by the President pro tempore

of the Senate to serve as a majority chairperson of the

committee.

(2) The Senator appointed by the Minority Leader of the

Senate to serve as a minority chairperson of the committee.

(3) The Representative appointed by the Speaker of the

House of Representatives to serve as a majority chairperson

of the committee.

(4) The Representative appointed by the Minority Leader

of the House of Representatives to serve as a minority

chairperson of the committee.

* * *

"Legislative day." A day when both houses of the General

Assembly are in voting session.

* * *

Section 2. Sections 5, 5.1(a), (e) and (j.2) and 7(d) of the

act are amended to read:

Section 5. Proposed regulations; procedures for review.

(a) On the same date that an agency submits a proposed

regulation to the Legislative Reference Bureau for publication

of notice of proposed rulemaking in the Pennsylvania Bulletin as

required by the Commonwealth Documents Law, the agency shall

submit to the commission and the [committees] committee

chairpersons a copy of the proposed regulation and a regulatory

analysis form which includes the following:

(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

regulation or for receiving comments relating to the

regulation.

20170SB0977PN1421 - 2 -

(1.1) A specific citation to the Federal or State

statutory or regulatory authority or the decision of a

Federal or State court under which the agency is proposing

the regulation, which the regulation is designed to implement

or which may mandate or affect compliance with the

regulation.

(2) A concise and, when possible, nontechnical

explanation of the proposed regulation.

(3) A statement of the need for the regulation.

(4) Estimates of the direct and indirect costs to the

Commonwealth, to its political subdivisions and to the

private sector. Insofar as the proposed regulation relates to

costs to the Commonwealth, the agency may submit in lieu of

its own statement the fiscal note prepared by the Office of

the Budget pursuant to section 612 of the act of April 9,

1929 (P.L.177, No.175), known as "The Administrative Code of

1929."

(5) A statement of legal, accounting or consulting

procedures and additional reporting, recordkeeping or other

paperwork, including copies of forms or reports, which will

be required for implementation of the regulation and an

explanation of measures which have been taken to minimize

these requirements.

(7) A schedule for review of the proposed regulation,

including the date by which the agency must receive comments;

the date or dates on which public hearings will be held; the

expected date of promulgation of the proposed regulation as a

final-form regulation; the expected effective date of the

final-form regulation; the date by which compliance with the

final-form regulation will be required; and the date by which

20170SB0977PN1421 - 3 -

required permits, licenses or other approvals must be

obtained.

(9) An identification of the types of persons, small

businesses, businesses and organizations which would be

affected by the regulation.

(10) An identification of the financial, economic and

social impact of the regulation 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.

(10.1) For any proposed regulation that may have an

adverse impact on small businesses, an economic impact

statement that includes the following:

(i) An identification and estimate of the number of

the small businesses subject to the proposed regulation.

(ii) The projected reporting, recordkeeping and

other administrative costs required for compliance with

the proposed regulation, including the type of

professional skills necessary for preparation of the

report or record.

(iii) A statement of the probable effect on impacted

small businesses.

(iv) A description of any less intrusive or less

costly alternative methods of achieving the purpose of

the proposed regulation.

(11) A description of any special provisions which have

been developed to meet the particular needs of affected

groups and persons, including minorities, the elderly, small

businesses and farmers.

20170SB0977PN1421 - 4 -

(12) A description of any alternative regulatory

provisions which have been considered and rejected and a

statement that the least burdensome acceptable alternative

has been selected.

(12.1) A regulatory flexibility analysis in which the

agency shall, where consistent with health, safety,

environmental and economic welfare, consider utilizing

regulatory methods that will accomplish the objectives of

applicable statutes while minimizing adverse impact on small

businesses. The agency shall consider, without limitation,

each of the following methods of reducing the impact of the

proposed regulation on small businesses:

(i) the establishment of less stringent compliance

or reporting requirements for small businesses;

(ii) the establishment of less stringent schedules

or deadlines for compliance or reporting requirements for

small businesses;

(iii) the consolidation or simplification of

compliance or reporting requirements for small

businesses;

(iv) the establishment of performance standards for

small businesses to replace design or operational

standards required in the proposed regulation; and

(v) the exemption of small businesses from all or

any part of the requirements contained in the proposed

regulation.

(13) A description of the plan developed for evaluating

the continuing effectiveness of the regulation after its

implementation.

(14) A description of any data upon which a regulation

20170SB0977PN1421 - 5 -

is based with a detailed explanation of how the data was

obtained and why the data is acceptable data. An agency

advocating that any data is acceptable data shall have the

burden of proving that the data is acceptable.

(a.1) The committee chairpersons shall, within five business

days OF RECEIPT , distribute to each committee member of the

committee chairperson's caucus a copy of the information

submitted to the committee chairpersons under subsection (a).

Committee chairpersons may distribute an electronic copy of the

information in lieu of a paper copy. The information required

under subsection (a)(3) or any other statement of purpose for

the regulation may be submitted to the commission and the

committee chairpersons, but may not be submitted to the

Legislative Reference Bureau for publication of notice of

proposed rulemaking in the Pennsylvania Bulletin.

(b) The requirements of subsection (a) shall not diminish

the requirements of section 201 of the Commonwealth Documents

Law, but the information required by this section may be

included in the Notice of Proposed Rulemaking published in the

Pennsylvania Bulletin in lieu of the information required by

paragraphs (2) and (3) of section 201 of the Commonwealth

Documents Law. The agency shall hold a public comment period

which shall commence with the publication of the notice of

proposed rulemaking and shall continue for not less than 30 days

unless section 203(1) or (2) of the Commonwealth Documents Law

applies.

the agency shall submit to the commission and the [committees]

committee chairpersons, within five business days of receipt, a

copy of comments which the agency receives relating to the

20170SB0977PN1421 - 6 -

<--

proposed regulation. The agency shall also, upon request, submit

to the commission and the [committees] committee chairpersons

copies of reports from advisory groups and other documents

received from or disseminated to the public relating to the

proposed regulation and public notices or announcements relating

to solicitation of public comments or meetings which the agency

held or will hold relating to the proposed regulation. The

committee chairpersons shall, within five business days of

receipt, distribute to each committee member of the committee

chairperson's caucus any information received under this

subsection. A committee chairperson may distribute an electronic

copy of the information in lieu of a paper copy.

(d) [The] Any member of the committees may, at any time

prior to the submittal of the regulation in final-form, convey

to the agency and the commission their comments, recommendations

and objections to the proposed regulation and a copy of any

staff reports deemed pertinent. The comments, recommendations

and objections may refer to the criteria in section 5.2. A

committee member making a comment, recommendation or objection

to the proposed regulation shall also submit the comments to

each committee chairperson. The majority committee chairperson

may convene a meeting of the committee to adopt any comment,

recommendation or objection to the proposed regulations or may

conduct an informational hearing on the proposed regulations.

The majority committee chairperson shall conduct an

informational hearing if petitioned to do so by a majority of

the committee members.

(f) An agency may not submit a proposed regulation to the

committees for review during the period from the end of the

legislative session in an even-numbered year to the date by

20170SB0977PN1421 - 7 -

which both committees have been designated in the next

succeeding legislative session, but an agency may submit a

proposed regulation and the material required under subsection

(a) to the commission and the Legislative Reference Bureau

during this period in accordance with subsection (a). The public

comment period shall commence with the publication of the notice

of proposed rulemaking and end on the date designated by the

agency under subsection (b). The agency shall submit the

proposed regulation and required material to the committees no

later than the second Monday after the date by which both

committee designations have been published in the Pennsylvania

Bulletin. If the agency does not deliver the proposed regulation

and all material required under this section in the time

prescribed in this subsection, the agency shall be deemed to

have withdrawn the proposed regulation.

(g) The commission may, within thirty days after the close

of the public comment period, convey to the agency and

[committees] committee chairpersons any comments,

recommendations and objections to the proposed regulation. The

committee chairpersons shall, within five business days of

receipt, distribute the commission's comments, recommendations

or objections to the proposed regulation to the committee

members of the committee chairperson's caucus. The comments,

recommendations and objections shall specify the regulatory

review criterion set forth in section 5.2 which the proposed

regulation has not met. If the commission does not comment on,

make recommendations regarding or object to any portion of the

proposed regulation within the time provided in this subsection,

the commission shall be deemed to have approved that portion of

the proposed regulation. Disapproval of the final-form

20170SB0977PN1421 - 8 -

regulation by the commission shall relate only to comments,

recommendations and objections raised by the commission to the

proposed regulation; to changes which the agency made to the

proposed regulation; or to recommendations, comments or

objections which a committee conveyed to the agency or the

commission.

(h) The commission shall provide comments to the agency if

the required submissions under subsection (a)(9), (10), (10.1)

and (12.1) demonstrate an adverse impact on small businesses.

Section 5.1. Final-form regulations and final-omitted

regulations; procedures for review.

(a) The agency shall review and consider public comments and

the comments of the committees and commission pursuant to this

section. Within five business days of receipt of a public

comment, the agency shall notify the commentator of the agency's

address and telephone number where the commentator may submit a

request for the information concerning the final-form regulation

under subsection (b). Upon completion of the agency's review of

comments, the agency shall submit to the commission and the

[committees] committee chairpersons a copy of its response to

the comments received, the names and addresses of commentators

who have requested additional information relating to the final-

form regulation and the text of the final-form regulation which

the agency intends to adopt. A committee chairperson shall,

within five business days of receipt, distribute the information

require d under this subsection to the committee members of the

committee chairperson's caucus. If an agency does not submit or

withdraws and does not resubmit the final-form regulation within

two years of the close of the public comment period but still

desires to promulgate the final-form regulation, the agency

20170SB0977PN1421 - 9 -

shall republish the regulation as a proposed regulation with a

new public comment period in accordance with the Commonwealth

Documents Law. If the agency is prevented from delivering its

final-form regulation to the commission and the committees

within the time period provided for in this subsection because

of the adjournment sine die or expiration of the legislative

session in an even-numbered year, the agency shall deliver its

final-form regulation in accordance with subsection (f).

* * *

(e) The commission may have until its next scheduled meeting

which occurs no less than 30 days after receipt of the final-

form or final-omitted regulation to approve or disapprove the

final-form or final-omitted regulation. Notwithstanding

subsections (j.1) and (j.2), at any time prior to 24 hours

before the commission's meeting to consider a regulation, a

committee chairperson, as authorized by a majority of the

committee's members, may notify the commission and the agency

that the committee disapproves or intends to further review the

final-form regulation. If notified by a committee that it

disapproves or intends to further review a regulation, the

commission may not approve or disapprove the regulation for a

period of 30 days or until the commission's next scheduled

meeting, whichever is longer. The commission shall notify the

agency and the committees of its approval or disapproval. If the

commission does not disapprove the final-form or final-omitted

regulation within the time allotted in this subsection, the

commission shall be deemed to have approved the final-form or

final-omitted regulation.

* * *

(j.2) At any time during the commission's review period up

20170SB0977PN1421 - 10 -

to 24 hours prior to the opening of the commission's public

meeting, a committee may notify the commission and the agency

that it has approved or disapproved a final-form or final-

omitted regulation or that it intends to review the regulation

in accordance with subsection (e). [If the commission approves a

regulation and a committee has not notified the commission and

the agency that it has disapproved the regulation or that it

intends to review the regulation, the agency may promulgate the

regulation.] If the commission approves a regulation and a

committee has notified the commission and the agency that it has

disapproved the regulation or that it intends to review the

regulation, the agency may not promulgate the regulation for 14

days or six legislative days, whichever is longer, after the

committee has received the commission's approval order. During

this 14-day [period] or six-legislative-day period, whichever is

longer, the committee may take action on the regulation pursuant

to section 7(d). If at the expiration of the 14-day [period] or

six-legislative-day period, whichever is longer, the committee

has not taken action on the regulation pursuant to section 7(d),

the agency may promulgate the regulation.

* * *

Section 7. Procedures for subsequent review of disapproved

final-form or final-omitted regulations.

* * *

(d) Upon receipt of the commission's order pursuant to

subsection (c.1) or at the expiration of the commission's review

period if the commission does not act on the regulation or does

not deliver its order pursuant to subsection (c.1), [one] the

following apply:

(1) One or both of the committees may, within 14 calendar

20170SB0977PN1421 - 11 -

days or six legislative days, whichever is longer, report to the

House of Representatives or Senate a concurrent resolution and

notify the agency. During the [14-calendar-day] period specified

in this paragraph, the agency may not promulgate the final-form

or final-omitted regulation. If, by the expiration of the [14-

calendar-day] period specified in this paragraph, neither

committee reports a concurrent resolution, the committees shall

be deemed to have approved the final-form or final-omitted

regulation, and the agency may promulgate that regulation.

(2) If either committee reports a concurrent resolution

before the expiration of the [14-day] period specified in

paragraph (1), the Senate and the House of Representatives shall

each have 30 calendar days or ten legislative days, whichever is

longer, from the date on which the concurrent resolution has

been reported from either the standing committee in the Senate

or House of Representatives, to adopt the concurrent resolution.

(3) If the General Assembly adopts the concurrent resolution

by majority vote in both the Senate and the House of

Representatives within the period specified in paragraph (2),

the concurrent resolution shall be presented to the Governor in

accordance with section 9 of Article III of the Constitution of

Pennsylvania.

(4) If the Governor does not return the concurrent

resolution to the General Assembly within ten calendar days

after it is presented, the Governor shall be deemed to have

approved the concurrent resolution.

(5) If the Governor vetoes the concurrent resolution, the

General Assembly may override that veto by a two-thirds vote in

each house. The Senate and the House of Representatives shall

each have 30 calendar days or ten legislative days, whichever is

20170SB0977PN1421 - 12 -

longer, to override the veto. If the General Assembly does not

adopt the concurrent resolution or override the veto in the time

prescribed in this [subsection] paragraph, it shall be deemed to

have approved the final-form or final-omitted regulation.

(6) Notice as to any final disposition of a concurrent

resolution considered in accordance with this [section]

subsection shall be published in the Pennsylvania Bulletin.

(7) The bar on promulgation of the final-form or final-

omitted regulation shall continue until that regulation has been

approved or deemed approved in accordance with this subsection.

(8) If the General Assembly adopts the concurrent resolution

and the Governor approves or is deemed to have approved the

concurrent resolution or if the General Assembly overrides the

Governor's veto of the concurrent resolution, the agency shall

be barred from promulgating the final-form or final-omitted

regulation.

(9) If the General Assembly does not adopt the concurrent

resolution or if the Governor vetoes the concurrent resolution

and the General Assembly does not override the Governor's veto,

the agency may promulgate the final-form or final-omitted

regulation.

(10) The General Assembly may, at its discretion, adopt a

concurrent resolution disapproving the final-form or final-

omitted regulation to indicate the intent of the General

Assembly but permit the agency to promulgate that regulation.

Section 3. This act shall take effect in 60 days.

20170SB0977PN1421 - 13 -