HB 995 — An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, providing for regulatory review and for regulatory reduction pilot program; and making an editorial change.

PRIOR PRINTER'S NO.

1202 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

3533995 THE2019 GENERALINTRODUCED ASSEMBLYBY OFLEWIS, PENNSYLVANIAKENYATTA, HOUSEGROVE, BILLROTHMAN, SessionRYAN, STRUZZI, BERNSTINE, OTTEN, McNEILL, KEEFER, McCLINTON, HILL-EVANS, NEILSON, HERSHEY, FITZGERALD, CEPHAS, MULLINS, O'MARA, MERSKI, HOHENSTEIN, FRANKEL, BURGOS AND ECKER, APRIL 5, 2019 REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 5, 2019 AN ACT Amending Title 71 (State Government) of No.the Pennsylvania Consolidated Statutes, providing for regulatory review and for regulatory reduction pilot program;

995and 2019making INTRODUCEDan BYeditorial LEWIS,change. KENYATTA, GROVE, ROTHMAN, RYAN, STRUZZI, BERNSTINE, OTTEN, McNEILL, KEEFER, McCLINTON, HILL-EVANS, NEILSON, HERSHEY, FITZGERALD, CEPHAS, MULLINS, O'MARA, MERSKI, HOHENSTEIN, BURGOS, ECKER, TOBASH, ULLMAN, WHEELAND, GABLER AND ROWE, APRIL 5, 2019 AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 6, 2020 AN ACT Amending Title 71 (State Government) of the Pennsylvania for regulatory reduction pilot program;

and making anw and editorial change.

"Regulation." Any rule or regulation, or order in the nature of a rule or regulation, promulgated by an agency under statutory authority in the administration of any statute administered by or relating to the agency or amending, revising or otherwise altering the terms and provisions of an existing 20190HB0995PN3533 - 2 - regulation, or prescribing the practice or procedure before the 20190HB0995PN1202 - 2 - agency.

The term shall also include actions of the Pennsylvania <-- Liquor Control Board that have an effect on the discount rate for retail licensees.

(b) Program focus and reduction goal.--The program shall <-- focus on regulations promulgated and administered by pilot agencies.

The stated goal of the program shall be to reduce UNNECESSARY regulatory requirements, compliance costs and <-- regulatory burden across pilot agencies by 25% by July 1, 2023.

<-- (c) Baseline regulatory catalog.--The secretary shall ensure pilot agencies develop a baseline regulatory catalog by October 1, 2020, that identifies:

(d) Catalog data report to office.--The catalog data shall be reported to the office in a manner specified by the office 20190HB0995PN3533 - 3 - and transferred to the Legislative Reference Bureau for 20190HB0995PN1202 - 3 - publication in the Pennsylvania Bulletin.

(e) Reduction goal.--The 25% A reduction goal under <-- subsection (b) shall be based on the total number of regulations and regulatory requirements as provided by the baseline regulatory catalog.

Progress towards the stated goal A REDUCTION <-- UNDER SUBSECTION (B) shall be measured by the number of regulations and regulatory requirements that are either eliminated or streamlined through regulatory or other action.

(2) Initiation of any reforms, through a rulemaking or nonregulatory action, that produce a reduction of the <-- equivalent of 7.5% of the regulations and regulatory requirements contained in the pilot agencies baseline regulatory catalog.

(2) Initiation of any reforms, through a rulemaking or nonregulatory action, that produce a reduction of the equivalent of 15% of the regulations and regulatory <-- 20190HB0995PN3533 - 4 - requirements contained in the pilot agencies baseline 20190HB0995PN1202 - 4 - regulatory catalog.

(2) Initiation of any reforms, through a rulemaking or nonregulatory action, that produce a reduction of the <-- equivalent of 25% of the regulations and regulatory requirements contained in the pilot agencies baseline regulatory catalog.

(d) Failure to meet reduction goal.--If a pilot agency is <-- unable to reach any of the reduction goals PRODUCE A REDUCTION <-- OF THE REGULATIONS AND REGULATORY REQUIREMENTS under subsection (a), (b) or (c), the pilot agency shall provide a separate report to the Governor, the General Assembly and the secretary stating the reasons for not meeting the goalgoal. PRODUCING A <-- REDUCTION.

(a) Annual report.--The secretary shall SUBMIT A report <-- annually to the President pro tempore of the Senate and the Speaker of the House of Representatives no later than October 1, 2021, and October 1, 2022, on the progress of the regulatory reduction pilot program established under this section.

THE(b) <--Failure REPORTto SHALLmeet INCLUDEreduction RECOMMENDATIONSpercentage.--If, ONby THEJuly ELIMINATION1, OR2022, MODIFICATIONthe OFregulatory REGULATIONS.reduction pilot program has achieved less than a 15% total reduction in regulatory requirements across both pilot agencies, either by initiating rulemaking actions or other streamlining actions, the secretary shall include the reasons for not meeting the target reduction in the next available annual report to the President pro tempore of the 20190HB0995PN1202 - 5 - Senate and the Speaker of the House of Representatives.

(b) Failure to meet reduction percentage.--If, by July 1, <-- 2022, the regulatory reduction pilot program has NOT achieved <-- 20190HB0995PN3533 - 5 - less than a 15% total A reduction in regulatory requirements <-- across both pilot agencies, either by initiating rulemaking actions or other streamlining actions, the secretary shall include the reasons for not meeting the target ACHIEVING A <-- reduction in the next available annual report to the President pro tempore of the Senate and the Speaker of the House of Representatives.

(1) The progress towards identifying the 25% ACHIEVING A <-- reduction goalgoal. IN REGULATIONS AND REGULATORY REQUIREMENTS.

<-- (2) Recommendations for expanding the program to other agencies.

(a) Report on failure to achieve program goalgoal.--If, REDUCTION.-- <-- If, by October 1, 2023, the program has NOT achieved less than <-- the 25% total A reduction in regulations and regulatory <-- requirements across the pilot agencies under section 4403(b) (relating to establishment), either by initiating rulemaking actions or other streamlining actions, the secretary shall direct pilot agencies to report on the factors leading to why the pilot agency could not meet the 25% ACHIEVE A reduction goal <-- in regulations and regulatory requirements across the pilot agencies under section 4403(b) and provide recommendations for policy and legislative changes required in order for the pilot 20190HB0995PN3533 - 6 - agency to achieve the intent of section 4401 (relating to legislative intent) and goal under section 4403(b).

No report <-- shall be required under this subsection if the program has achieved a 25% or greater reduction in regulations or regulatory requirements across the pilot agencies.

(b) Permitted budgetary review of pilot agencies.--The 20190HB0995PN1202 - 6 - President pro tempore of the Senate and the Speaker of the House of Representatives may also direct the Legislative Budget and Finance Committee to initiate a budgetary review of pilot agencies.

The review shall assess what obstacles exist to meeting the 25% ACHIEVING A reduction goal under section <-- 4403(b).

(1) Whether the A reduction goals IN REGULATIONS AND <-- REGULATORY REQUIREMENTS are reasonable and achievable.

(2) Policies, practices and methods that may be adopted by agencies to successfully achieve the A reduction goalsgoals. IN <-- REGULATIONS AND REGULATORY REQUIREMENTS.

(2) The statutory authority that requires the 20190HB0995PN3533 - 7 - regulations and associated regulatory requirements.

20190HB0995PN1202 - 7 - (b) Agency schedule of review.--Agencies shall provide to the office a schedule listing each regulation that shall be reviewed in each of the four years, to be transmitted to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.

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