SENATE AMENDED
PRIOR PRINTER'S NOS. 3453, 3592 PRINTER'S NO. 4806
No. 2442 Session of 2004
INTRODUCED BY PICKETT, REED, TURZAI, BOYD, DENLINGER,
HUTCHINSON, McILHATTAN, MUSTIO, PAYNE, REICHLEY, ALLEN,
ARGALL, ARMSTRONG, BAKER, BALDWIN, BARD, BROWNE, CAPPELLI,
CAUSER, CRAHALLA, DALEY, DALLY, FAIRCHILD, FICHTER, FORCIER,
FRANKEL, GABIG, GINGRICH, GOOD, GOODMAN, HARRIS, HENNESSEY,
HERMAN, HERSHEY, HESS, HICKERNELL, HORSEY, KILLION, LEH,
MAJOR, MARSICO, METCALFE, MILLARD, S. MILLER, O'NEILL,
SAINATO, SCAVELLO, SCHRODER, STERN, R. STEVENSON,
T. STEVENSON, E. Z. TAYLOR, TIGUE, WANSACZ, WATSON, WILT,
YOUNGBLOOD AND ZUG, MARCH 16, 2004
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 20, 2004
AN ACT
1 Amending the act of June 25, 1982 (P.L.633, No.181), entitled,
2 as reenacted, "An act providing for independent oversight and
3 review of regulations, creating an Independent Regulatory
4 Review Commission, providing for its powers and duties and
5 making repeals," further providing for legislative intent, <--
6 for definitions, FOR COMPOSITION and for proposed regulations <--
7 and procedure for review.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2 of the act of June 25, 1982 (P.L.633, <--
11 No.181), known as the Regulatory Review Act, reenacted and
12 amended June 30, 1989 (P.L.73, No.19), and amended June 25, 1997
13 (P.L.252, No.24), is amended to read:
14 Section 2. Legislative intent.
15 (a) The General Assembly has enacted a large number of
16 statutes and has conferred on boards, commissions, departments
1 and agencies within the executive branch of government the
2 authority to adopt rules and regulations to implement those
3 statutes. The General Assembly has found that this delegation of
4 its authority has resulted in regulations being promulgated
5 without undergoing effective review concerning cost benefits,
6 duplication, inflationary impact and conformity to legislative
7 intent. The General Assembly finds that it must establish a
8 procedure for oversight and review of regulations adopted
9 pursuant to this delegation of legislative power in order to
10 curtail excessive regulation and to require the executive branch
11 to justify its exercise of the authority to regulate before
12 imposing hidden costs upon the economy of Pennsylvania. It is
13 the intent of this act to establish a method for ongoing and
14 effective legislative review and oversight in order to foster
15 executive branch accountability; to provide for primary review
16 by a commission with sufficient authority, expertise,
17 independence and time to perform that function; to provide
18 ultimate review of regulations by the General Assembly; and to
19 assist the Governor, the Attorney General and the General
20 Assembly in their supervisory and oversight functions. To the
21 greatest extent possible, this act is intended to encourage the
22 resolution of objections to a regulation and the reaching of a
23 consensus among the commission, the standing committees,
24 interested parties and the agency.
25 [(b) This act is not intended to create a right or benefit,
26 substantive or procedural, enforceable at law by a person
27 against another person or against the Commonwealth, its agencies
28 or its officers.]
29 (b) To improve state rulemaking by creating procedures to
30 analyze the availability of more flexible regulatory approaches
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1 for small businesses in accordance with the following findings:
2 (1) A vibrant and growing small business sector is
3 critical to creating jobs in a dynamic economy.
4 (2) Small businesses bear a disproportionate share of
5 regulatory costs and burdens.
6 (3) Fundamental changes that are needed in the
7 regulatory and enforcement culture of State agencies to make
8 them more responsive to small business can be made without
9 compromising the statutory missions of the agencies.
10 (4) When adopting regulations to protect the health,
11 safety and economic welfare of the Commonwealth of
12 Pennsylvania, State agencies should seek to achieve statutory
13 goals as effectively and efficiently as possible without
14 imposing unnecessary burdens on small business.
15 (5) Uniform regulatory and reporting requirements can
16 impose unnecessary and disproportionately burdensome demands,
17 including legal, accounting and consulting costs upon small
18 businesses with limited resources.
19 (6) The failure to recognize differences in the scale
20 and resources of regulated businesses can adversely affect
21 competition in the marketplace, discourage innovation and
22 restrict improvements in productivity.
23 (7) Unnecessary regulations create entry barriers in
24 many industries and discourage potential entrepreneurs from
25 introducing beneficial products and processes.
26 (8) The practice of treating all regulated businesses as
27 equivalent may lead to inefficient use of regulatory agency
28 resources, enforcement problems, and, in some cases, to
29 actions inconsistent with the legislative intent of health,
30 safety, environmental and economic welfare legislation.
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1 (9) Alternative regulatory approaches which do not
2 conflict with the stated objective of applicable statutes may
3 be available to minimize the significant economic impact of
4 rules on small businesses.
5 (10) The process by which State regulations are
6 developed and adopted should be reformed to require agencies
7 to solicit the ideas and comments of small businesses, to
8 examine the impact of proposed and existing rules on such
9 businesses, and to review the continued need for existing
10 rules.
11 (c) For any regulation subject to this act, a small business
12 that is adversely affected or aggrieved by final agency action
13 is entitled to judicial review of agency compliance with the
14 requirements of this section.
15 (d) A small business may seek such review during the period
16 beginning on the date of final agency action and ending one year
17 later.
18 (e) This act is not intended to create a right or benefit,
19 substantive or procedural, enforceable at law by a person
20 against another person or against the Commonwealth, its agencies
21 or its officers.
22 Section 2. Section 3 of the act is amended by adding a
23 definition to read:
24 SECTION 1. SECTION 3 OF THE ACT OF JUNE 25, 1982 (P.L.633, <--
25 NO.181), KNOWN AS THE REGULATORY REVIEW ACT, REENACTED AND
26 AMENDED JUNE 30, 1989 (P.L.73, NO.19), IS AMENDED BY ADDING A
27 DEFINITION TO READ:
28 Section 3. Definitions.
29 The following words and phrases when used in this act shall
30 have the meanings given to them in this section unless the
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1 context clearly indicates otherwise:
2 * * *
3 "Small business." A business entity, including its
4 affiliates, that:
5 (1) is independently owned and operated; and
6 (2) employs fewer than two hundred fifty full-time
7 employees or has gross annual sales of less than six million
8 dollars.
9 * * *
10 SECTION 2. SECTION 4(G) OF THE ACT, AMENDED JUNE 25, 1997 <--
11 (P.L.252, NO.24), IS AMENDED TO READ:
12 SECTION 4. COMPOSITION OF COMMISSION; MEMBERSHIP, COMPENSATION;
13 VACANCIES; REMOVAL.
14 * * *
15 (G) THE FOLLOWING APPLY:
16 (1) THE COMMISSION SHALL ELECT A CHAIRPERSON, WHO SHALL
17 SERVE FOR A TERM OF TWO YEARS AND UNTIL A SUCCESSOR IS
18 ELECTED. THE CHAIRPERSON SHALL PRESIDE AT MEETINGS OF THE
19 COMMISSION AND SHALL EXECUTE DOCUMENTS RELATING TO THE FORMAL
20 ACTIONS OF THE COMMISSION.
21 (2) AT THE FIRST MEETING IN JANUARY OF EVEN-NUMBERED
22 YEARS, THE COMMISSION SHALL ALSO ELECT A VICE-CHAIRPERSON,
23 WHO SHALL SERVE A TERM OF TWO YEARS AND UNTIL A SUCCESSOR IS
24 ELECTED. THE VICE-CHAIRPERSON SHALL PRESIDE AT THE MEETING OF
25 THE COMMISSION IN THE ABSENCE OF THE CHAIRPERSON.
26 (3) IF A VACANCY EXISTS IN THE OFFICE OF CHAIRPERSON OR
27 THE CHAIRPERSON IS UNABLE TO PERFORM THE DUTIES OF THE OFFICE
28 OF CHAIRPERSON ON A PERMANENT BASIS, THE VICE-CHAIRPERSON
29 SHALL ASSUME THE OFFICE OF THE CHAIRPERSON FOR THE REMAINDER
30 OF THE CHAIRPERSON'S UNEXPIRED TERM AND UNTIL A SUCCESSOR IS
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1 ELECTED.
2 Section 3. Section 5(a) of the act, amended December 6, 2002
3 (P.L.1227, No.148), is amended and the section is amended by <--
4 adding a subsection to read:
5 Section 5. Proposed regulations; procedures for review.
6 (a) On the same date that an agency submits a proposed
7 regulation to the Legislative Reference Bureau for publication
8 of notice of proposed rulemaking in the Pennsylvania Bulletin as
9 required by the Commonwealth Documents Law, the agency shall
10 submit to the commission and the committees a copy of the
11 proposed regulation and a regulatory analysis form which
12 includes the following:
13 (1) The title of the agency and the names, office
14 addresses and telephone numbers of the agency officials
15 responsible for responding to questions regarding the
16 regulation or for receiving comments relating to the
17 regulation.
18 (1.1) A specific citation to the Federal or State
19 statutory or regulatory authority or the decision of a
20 Federal or State court under which the agency is proposing
21 the regulation, which the regulation is designed to implement
22 or which may mandate or affect compliance with the
23 regulation.
24 (2) A concise and, when possible, nontechnical
25 explanation of the proposed regulation.
26 (3) A statement of the need for the regulation.
27 (4) Estimates of the direct and indirect costs to the
28 Commonwealth, to its political subdivisions and to the
29 private sector. Insofar as the proposed regulation relates to
30 costs to the Commonwealth, the agency may submit in lieu of
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1 its own statement the fiscal note prepared by the Office of
2 the Budget pursuant to section 612 of the act of April 9,
3 1929 (P.L.177, No.175), known as "The Administrative Code of
4 1929."
5 (5) A statement of legal, accounting or consulting
6 procedures and additional reporting, recordkeeping or other
7 paperwork, including copies of forms or reports, which will
8 be required for implementation of the regulation and an
9 explanation of measures which have been taken to minimize
10 these requirements.
11 (7) A schedule for review of the proposed regulation,
12 including the date by which the agency must receive comments;
13 the date or dates on which public hearings will be held; the
14 expected date of promulgation of the proposed regulation as a
15 final-form regulation; the expected effective date of the
16 final-form regulation; the date by which compliance with the
17 final-form regulation will be required; and the date by which
18 required permits, licenses or other approvals must be
19 obtained.
20 (9) An identification of the types of persons, small
21 businesses, businesses and organizations which would be
22 affected by the regulation.
23 (10) An identification of the financial, economic and
24 social impact of the regulation on individuals, small
25 businesses, business and labor communities and other public
26 and private organizations and, when practicable, an
27 evaluation of the benefits expected as a result of the
28 regulation.
29 (10.1) Prior to the adoption of any proposed regulation <--
30 that may have an adverse impact on small businesses, each
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1 agency shall prepare an economic impact statement that
2 includes the following:
3 (i) An identification and estimate of the number of
4 the small businesses subject to the proposed regulation.
5 (ii) The projected reporting, recordkeeping and
6 other administrative costs required for compliance with
7 the proposed regulation, including the type of
8 professional skills necessary for preparation of the
9 report or record.
10 (iii) A statement of the probable effect on impacted
11 small businesses.
12 (iv) A description of any less intrusive or less
13 costly alternative methods of achieving the purpose of
14 the proposed regulation.
15 (11) A description of any special provisions which have
16 been developed to meet the particular needs of affected
17 groups and persons, including minorities, the elderly, small
18 businesses and farmers.
19 (12) A description of any alternative regulatory
20 provisions which have been considered and rejected and a
21 statement that the least burdensome acceptable alternative
22 has been selected.
23 (12.1) Prior to the adoption of any proposed regulation <--
24 on and after January 1, 2004, each agency shall prepare a
25 regulatory flexibility analysis in which the agency shall,
26 where consistent with health, safety, environmental and
27 economic welfare, consider utilizing regulatory methods that
28 will accomplish the objectives of applicable statutes while
29 minimizing adverse impact on small businesses. The agency
30 shall consider, without limitation, each of the following
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1 methods of reducing the impact of the proposed regulation on
2 small businesses:
3 (i) the establishment of less stringent compliance
4 or reporting requirements for small businesses;
5 (ii) the establishment of less stringent schedules
6 or deadlines for compliance or reporting requirements for
7 small businesses;
8 (iii) the consolidation or simplification of
9 compliance or reporting requirements for small
10 businesses;
11 (iv) the establishment of performance standards for
12 small businesses to replace design or operational
13 standards required in the proposed regulation; and
14 (v) the exemption of small businesses from all or
15 any part of the requirements contained in the proposed
16 regulation.
17 (a.1) Prior to the adoption of any proposed regulation that
18 may have an adverse impact on small businesses, each agency
19 shall notify the Independent Regulatory Review Commission of its
20 intent to adopt the proposed regulation.
21 * * *
22 Section 4. This act shall take effect in 60 days <--
23 IMMEDIATELY. <--
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