PRINTER'S NO. 568
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
250
Session of
2019
INTRODUCED BY PHILLIPS-HILL, FOLMER, MARTIN, HUTCHINSON,
DiSANTO, J. WARD, MENSCH, K. WARD, REGAN, STEFANO AND BROWNE,
APRIL 8, 2019
REFERRED TO INTERGOVERNMENTAL OPERATIONS, APRIL 8, 2019
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 and for final-form
regulations and final-omitted regulations and procedures for
review; providing for regulations deemed withdrawn; further
providing for procedures for subsequent review of disapproved
final-form or final-omitted regulations by the commission;
providing for concurrent resolution required for economically
significant regulations; further providing for existing
regulations; and providing for State agency regulatory
compliance officers and for Independent Office of the
Repealer.
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:
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"Director." The director of the office.
"Economically significant regulation." A regulation that, if
promulgated and implemented, may reasonably be expected to
result in direct or indirect cost to the Commonwealth, to its
political subdivisions and to the private sector in excess of
$1,000,000 on an annual basis.
* * *
"Legislative day." A day when both houses of the General
Assembly are in voting session.
"Office." The Independent Office of the Repealer.
* * *
"Selection committee." The Selection and Organization
Committee in the office.
* * *
Section 2. Section 5(a)(1.1) and (4) of the act are amended
and the section is amended by adding subsections 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 a copy of the
proposed regulation and a regulatory analysis form which
includes the following:
* * *
(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
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or which may mandate or affect compliance with the
regulation. In the case of a citation of State statutory
authority, the citation must be to a provision of the statute
that explicitly states that the agency may promulgate
regulations for the specific purpose cited in the statement
of need for the regulation under paragraph (3).
* * *
(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."] The estimates shall be prepared by the Independent
Fiscal Office and submitted to the agency for inclusion in
the regulatory analysis form and shall include an estimate of
the annual costs to be used to determine whether the
regulation is an economically significant regulation.
* * *
(d.1) The committees shall, during the public comment
period, conduct a public hearing to receive comments regarding a
proposed economically significant regulation. The agency shall
appear at the hearing if requested to do so by the chair of the
committee.
* * *
(i) All forms required for implementation of a regulation
must be included with the regulatory analysis form when
submitted to the Legislative Reference Bureau, the committees
and the commission under subsection (a).
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(j) The commission shall transmit comments regarding the
cost estimates required under subsection (a)(4) to the
Independent Fiscal Office for review.
Section 3. Section 5.1(e), (j.2), (j.3) and (l) of the act
are amended to read:
Section 5.1. Final-form regulations and final-omitted
regulations; procedures for review.
* * *
(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 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 the committee
disapproves of a regulation, the commission may not approve or
disapprove the regulation for a period of 30 days or nine
legislative days, whichever is longer. If notified by a
committee that the committee intends to further review a final-
form regulation, the commission may not approve or disapprove
the regulation for a period of 14 days or six legislative days,
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.
* * *
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(j.2) (1) At any time during the commission's review period
up 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.
(2) 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.
(3) During [this 14-day period] the period established
under paragraph (2), the committee may take action on the
regulation pursuant to section 7(d). If at the expiration of
the [14-day] period established under paragraph (2) the
committee has not taken action on the regulation pursuant to
section 7(d), the agency may promulgate the regulation.
(j.3) If the committees are prevented from completing their
[14-day] review during the period established under subsection
(j.2)(2) because of adjournment sine die or expiration of the
legislative session in an even-numbered year, their review of
the final-form or final-omitted regulation shall automatically
be suspended until the fourth Monday in January of the next
year. On that date, the agency shall resubmit the final-form or
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final-omitted regulation and required material to the committees
and the commission. If either committee has not been designated
by the fourth Monday in January, the agency may not deliver the
final-form or final-omitted regulation and required material to
the committees and the commission until both committees are
designated. If the agency does not deliver the final-form or
final-omitted regulation and required material to the commission
and the committees by the second Monday after the date by which
both committee designations have been published in the
Pennsylvania Bulletin, the agency shall be deemed to have
withdrawn the final-form or final-omitted regulation. In
determining the remaining time for committee review, the number
of days in which the committees have had the final-form or the
final-omitted regulation under review as of the adjournment sine
die or expiration of the prior session shall be subtracted from
the [14-day] committee review period established under
subsection (j.2)(2), but the committee review period in the next
succeeding legislative session shall not be less than ten days.
An agency may not submit a final-form or final-omitted
regulation to the commission or the committees for review during
the period from the adjournment sine die or expiration of the
legislative session of an even-numbered year to the date by
which both committees have been designated in the next
succeeding legislative session. This subsection shall not apply
to emergency-certified regulations adopted pursuant to the
provisions of section 6(d).
* * *
(l) Except for emergency-certified regulations adopted under
section 6(d), an agency may not promulgate a regulation until
completion of the review provided for in this act[.] and, if the
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regulation is an economically significant regulation, the
General Assembly adopts a concurrent resolution under section
7.2.
Section 4. The act is amended by adding a section to read:
Section 5.3. Regulations deemed withdrawn.
A regulation shall be deemed withdrawn if there is no
provision of a State statute which explicitly states that the
agency may promulgate regulations for the specific purpose cited
in the statement of need for the regulation under section 5(a)
(3) and the regulatory analysis form submitted for the
regulation does not comply with the requirements of section 5(a)
(1.1).
Section 5. Section 7(d) of the act is amended and the
section is amended by adding a subsection to read:
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 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
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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]
chamber to which the concurrent resolution is reported shall
[each] have 30 calendar days or ten legislative days,
whichever is longer, from the date on which the concurrent
resolution has been reported, to adopt the concurrent
resolution[.] and transmit it to the other chamber. The other
chamber shall have 30 calendar days or ten legislative days,
whichever is longer, from the date on which the concurrent
resolution has been transmitted, 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 60 calendar days or 20 legislative
days, whichever is longer, from the date on which a
concurrent resolution has been reported out by a committee,
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
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Representatives shall each have 30 calendar days or ten
legislative days, whichever is 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) An agency shall be prohibited from reissuing the
same regulation in the future, or promulgating a regulation
that is substantially similar, unless the new or revised
regulation is specifically authorized by a law enacted after
the date the concurrent resolution is approved or deemed to
be approved by the Governor or after the date when the
General Assembly overrides the Governor's veto of the
concurrent resolution.
(10) If the General Assembly does not adopt the
concurrent resolution or if the Governor vetoes the
concurrent resolution and the General Assembly does not
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override the Governor's veto, the agency may promulgate the
final-form or final-omitted regulation.
(11) 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.
(e) A committee may report a concurrent resolution to
initiate the repeal of any regulation currently in effect,
provided that the committee conducts a public hearing on the
matter prior to reporting the concurrent resolution. If the
General Assembly adopts the concurrent resolution by majority
vote in both the Senate and the House of Representatives, the
concurrent resolution shall be presented to the Governor in
accordance with section 9 of Article III of the Constitution of
Pennsylvania. 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. 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 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, the
regulation shall remain in effect. An agency shall be prohibited
from reissuing the same regulation in the future, or
promulgating a regulation that is substantially similar, unless
the new or revised regulation is specifically authorized by a
law enacted after the date the concurrent resolution is approved
or deemed to be approved by the Governor or after the date when
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the General Assembly overrides the Governor's veto of the
concurrent resolution.
Section 6. The act is amended by adding a section to read:
Section 7.2. Concurrent resolution required for economically
significant regulations.
(a) If the commission issues an order to approve a final-
form regulation or final-omitted regulation that is an
economically significant regulation or if the agency decides to
proceed with a final-form regulation or final-omitted regulation
that is an economically significant regulation for which the
commission issued a disapproval order , the agency shall submit a
copy of the order and, if applicable, the agency response to the
Senate and the House of Representatives and shall request a
concurrent resolution approving the regulation. The concurrent
resolution shall be referred to the applicable standing
committee of the Senate and the applicable standing committee of
the House of Representatives. A concurrent resolution that is
reported from the standing committee of the Senate shall be
placed on the Senate calendar. A concurrent resolution that is
reported from the standing committee of the House of
Representatives shall be placed on the House calendar. 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 agency requested the concurrent resolution
to consider the concurrent resolution. If the General Assembly
does not adopt the concurrent resolution in the time prescribed
in this subsection, the final-form regulation or final-omitted
regulation shall be deemed not approved and the regulation shall
not take effect.
(b) This section shall not apply to emergency-certified
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regulations adopted under section 6(d).
Section 7. Section 8.1 of the act is amended to read:
Section 8.1. Existing regulations.
The commission, on its motion or at the request of any person
or member of the General Assembly, may review any existing
regulation which has been in effect for at least three years. If
a committee of the Senate or the House of Representatives
requests a review of an existing regulation, the commission
shall perform the review and shall assign it high priority. The
commission may submit recommendations to an agency recommending
changes in existing regulations if it finds the existing
regulations to be contrary to the public interest under the
criteria established in section 5.2. The commission may also
make recommendations to the General Assembly and the Governor
for statutory changes if the commission finds that any existing
regulation may be contrary to the public interest. Unless
prohibited by the laws of this Commonwealth, at the time an
agency promulgates a new regulation, the agency shall identify
at least two existing regulations for repeal.
Section 8. The act is amended by adding sections to read:
Section 12.2. State agency regulatory compliance officers.
(a) Each agency shall have the following powers and duties:
(1) To designate an employee as the agency's regulatory
compliance officer.
(2) To empower the regulatory compliance officer under
paragraph (1) to develop agency policies and initiatives to
further the purpose of this section, including, but not
limited to, the following:
(i) educating the regulated community regarding the
implementation of new or amended statutes and regulations
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prior to the effective date of implementation, to the
extent practicable and during implementation;
(ii) establishing clear channels of communication
through which members of regulated communities can
contact the agency with questions or concerns regarding
regulations;
(iii) working with regulated communities to resolve
noncompliance issues before imposing penalties; and
(iv) providing a detailed explanation of each
regulatory requirement under the agency's jurisdiction,
including expectations for compliance, guidelines for
measuring compliance and the primary benefit of each
requirement.
(3) To empower the regulatory compliance officer to
issue to any person, upon the person's request, an opinion
with respect to the person's duties under a regulation of the
agency. The opinion shall be provided within 20 business days
of the request, provided that the time may be extended for
good cause. The opinion, or the agency's failure to provide
an opinion upon request, shall be a complete defense in any
enforcement proceeding initiated by the agency and evidence
of good faith conduct in any other civil or criminal
proceeding if the requester, at least 20 business days prior
to the alleged violation, requested written advice from the
agency's regulatory compliance officer in good faith,
disclosed truthfully all the material facts and committed the
acts complained of either in reliance on the advice or
because of the failure of the agency to provide advice within
20 business days, or any later extended time, of the request.
(4) To empower the regulatory compliance officer to
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establish guidelines for waiving any fines or penalties that
the officer's agency would be authorized to impose on a
regulated entity for a violation of a statute or regulation
that the agency enforces if the entity reports a violation to
the regulatory compliance officer before a fine or penalty is
imposed on the entity. In order to be eligible for a waiver
of fines or penalties, the regulated entity must report to
the regulatory compliance officer the steps it has taken or
will take to remedy the violation.
(5) To empower the regulatory compliance officer to
request and obtain any information or advice from other staff
of the agency that the officer may need to fulfill the duties
of the compliance officer position.
(6) To establish clear channels of communication through
which businesses seeking to become members of regulated
communities can contact the agency with questions or concerns
relating to starting a business and future compliance with
regulations.
(b) No later than January 31 of each year, each agency shall
submit to the General Assembly an annual report detailing all of
the following:
(1) The progress made by the agency and the regulatory
compliance officer in the preceding calendar year towards
compliance with this section.
(2) The number of regulated communities served.
(3) The type of regulated communities served.
Section 12.3. Independent Office of the Repealer.
(a) There is established a nonpartisan Independent Office of
the Repealer within the Independent Regulatory Review
Commission.
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(b) The office shall have the following powers and duty to:
(1) Adopt logical, quantitative and qualitative rules to
determine whether an existing statute or regulation of the
Commonwealth is:
(i) Unreasonable, unduly burdensome, detrimental to
economic well-being, duplicative, onerous, defective or
in conflict with another statute or regulation.
(ii) Defying a common sense approach to government.
(2) Perform a systematic review of existing statutes and
regulations of this Commonwealth in accordance with the rules
adopted for review under this act.
(3) Identify existing statutes and regulations which may
be appropriate for legislative and executive agency
modification, revision or repeal.
(4) Establish as soon as practical a system with a
publicly accessible Internet website that allows the office
to receive:
(i) Suggestions and comments, along with supporting
documentation, for modification, revision or repeal from
citizens, businesses, government agencies or others.
(ii) Reports on allegations of wasteful governmental
practices.
(5) Determine and implement internal policies, standards
and procedures as may be necessary for the orderly and
efficient execution of the mission of the office.
(6) Implement a tracking system to follow all
submissions and actions taken on a recommendation made by the
director which includes progress of modification, revision or
repeal.
(7) By June 30 of each year, report to the General
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Assembly and the Governor on:
(i) Recommended changes to statutes and regulations.
(ii) Recommended changes to increase efficiency and
eliminate wasteful practices.
(iii) Progress of the revision, repeal or abrogation
of statutes and regulations.
(c) The committee established in the office shall:
(1) Consist of the following members:
(i) One member appointed by the Governor.
(ii) One member appointed by the President pro
tempore of the Senate in consultation with the Majority
Leader and the Minority Leader of the Senate.
(iii) One member appointed by the Speaker of the
House of Representatives in consultation with the
Majority Leader and the Minority Leader of the House of
Representatives.
(2) Select the director of the office in accordance with
the following:
(i) The committee shall publish qualifications of
the director in the Pennsylvania Code and Bulletin within
90 days of the first meeting of the committee.
(ii) The appointment may not be made on the basis of
political affiliation.
(iii) The appointment shall be made on the basis of
the fitness to perform the duties of the office based on
the published qualifications.
(d) The director shall serve in accordance with the
following:
(1) The selection of the director shall occur no later
than September 1, 2019.
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(2) The director shall serve for a term of six years.
(3) An individual appointed as director to fill a
vacancy prior to the expiration of a term shall only serve
for the unexpired portion of the term.
(e) The director shall appoint a deputy director who shall
have the following duties:
(1) Perform assigned duties from the director.
(2) Assume the role of the director:
(i) during an absence or incapacity of the director;
or
(ii) if a vacancy occurs in the position of director
until a successor director is appointed.
(f) The director may be removed by a concurrent resolution
passed by the Senate and the House of Representatives.
(g) The director shall have the following powers and duties:
(1) The authority to:
(i) Determine and implement internal policies,
standards and protocols to orderly and efficiently carry
out the mission of the office under this section.
(ii) Procure the temporary or intermittent service
of attorneys, experts, consultants or organizations by
contract.
(2) Hire and fix compensation in accordance with the
following:
(i) The hiring and appointments shall be made on the
basis of the duties of the office and the performance of
the functions of the office.
(ii) All personnel shall be hired or appointed
without regard to political affiliation.
(iii) Hiring and appointments shall be based on
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fitness to perform the necessary duties.
(h) (1) When the office determines that a statute or
regulation meets the standards set under this section and as
set by the director for modification, revision or repeal, the
director shall recommend the action to:
(i) The General Assembly if a statute needs to be
modified, revised or repealed.
(ii) The State department or agency that promulgated
the regulation that needs to be modified, revised or
repealed.
(2) A recommendation from the office shall provide
specific details why the office is recommending that the
statute or regulation needs to be modified, revised or
repealed.
(i) The office shall be a Commonwealth agency for the
purposes of the act of February 14, 2008 (P.L.6, No.3), known as
the "Right-to-Know Law."
(j) This act shall expire June 30, 2025.
Section 9. The amendment or addition of the following
provisions of the act shall apply to any regulation prepared in
final form on or after the effective date of this section:
(1) The definitions of "economically significant
regulation" and "legislative day" in section 3.
(2) Section 5(a)(1.1) and (4), (d.1), (i) and (j).
(3) Section 5.1(e), (j.2), (j.3) and (l).
(4) Section 5.3.
(5) Section 7(d).
(6) Section 7.2.
Section 10. This act shall take effect in 60 days.
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