SB 438 — An Act providing for regulatory compliance.

PRINTER'S NO.   409

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 438
                                               Session of
                                                 2025

     INTRODUCED BY PHILLIPS-HILL, ROTHMAN, J. WARD AND DUSH,
        MARCH 17, 2025

     REFERRED TO INTERGOVERNMENTAL OPERATIONS, MARCH 17, 2025


                                   AN ACT
 1   Providing for regulatory compliance.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4   Section 1.   Short title.
 5      This act shall be known and may be cited as the State Agency
 6   Regulatory Compliance Officer Act.
 7   Section 2.   Findings and declarations.
 8      The General Assembly finds and declares as follows:
 9          (1)   It is the purpose of this act for agencies to work
10      collaboratively with, instead of acting punitively toward,
11      regulated communities.
12          (2)   Agencies should strive to make the regulations which
13      the agencies administer and enforce as clear and easily
14      navigable as possible for regulated communities.
15          (3)   In administering a regulation, an agency's primary
16      goal should be to ensure compliance rather than to exact
17      punishment.
 1   Section 3.   Definitions.
 2      The following words and phrases when used in this act shall
 3   have the meanings given to them in this section unless the
 4   context clearly indicates otherwise:
 5      "Agency."    As defined in section 3 of the act of June 25,
 6   1982 (P.L.633, No.181), known as the Regulatory Review Act.
 7      "Regulated entity."      An entity regulated by an agency.
 8   Section 4.   Powers and duties.
 9      Each agency shall have the following powers and duties:
10          (1)     To designate an employee as the agency's regulatory
11      compliance officer.
12          (2)     To empower the regulatory compliance officer under
13      paragraph (1) to develop agency policies and initiatives to
14      further the purpose of this act, including:
15                (i)    Educating affected regulated entities on the
16          implementation of new or amended statutes and regulations
17          prior to the effective date of implementation, to the
18          extent practicable and during implementation.
19                (ii)    Establishing clear channels of communication
20          through which regulated entities can contact the agency
21          with questions or concerns regarding regulations.
22                (iii)    Working with regulated entities to resolve
23          noncompliance issues before imposition of penalties.
24                (iv)    Providing a detailed explanation of each
25          regulatory requirement under the agency's jurisdiction,
26          including expectations for compliance, guidelines for
27          measuring compliance and the primary benefit of each
28          requirement.
29          (3)     To empower the regulatory compliance officer to
30      issue to any person, upon the person's request, an opinion

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 1    with respect to the person's duties under a regulation of the
 2    agency. The following shall apply:
 3              (i)    The opinion shall be provided within 20 business
 4        days of the request, provided that the time may be
 5        extended for good cause.
 6              (ii)    It shall be a complete defense in any
 7        enforcement proceeding initiated by the agency and
 8        evidence of good faith conduct in any other civil or
 9        criminal proceeding if:
10                     (A)   the requester, at least 20 business days
11              prior to the alleged violation, requested an opinion
12              from the agency's regulatory compliance officer in
13              good faith, disclosed truthfully all the material
14              facts and committed the acts complained of in
15              reliance on the advice in an opinion issued under
16              this paragraph; or
17                     (B)   the regulatory compliance officer failed to
18              provide an opinion within 20 business days, or any
19              later extended time, of the request and the committed
20              acts complained of were the subject of the request.
21        (4)   To empower the regulation compliance officer to
22    establish guidelines for waiving fines or penalties that the
23    officer's agency would be authorized to impose on a regulated
24    entity for a violation of a statute or regulation that the
25    agency enforces if the entity reports a violation to the
26    regulatory compliance officer before a fine or penalty is
27    imposed on the entity. In order to be eligible for a waiver
28    of fines or penalties, the regulated entity must report to
29    the regulatory compliance officer the steps the entity has
30    taken or will take to remedy the violation.

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 1          (5)   To empower the regulatory compliance officer to
 2      request and obtain any information or advice from other staff
 3      of the agency that the officer may need to fulfill the duties
 4      of the regulation compliance officer position.
 5          (6)   To establish clear channels of communication through
 6      which persons seeking to become a regulated entity can
 7      contact the agency with questions or concerns relating to
 8      starting a business and future compliance with regulations.
 9   Section 5.   Annual report.
10      No later than January 31 of each year, each agency shall
11   submit to the General Assembly an annual report detailing all of
12   the following:
13          (1)   The progress made by the agency and the regulatory
14      compliance officer in the preceding calendar year toward
15      compliance with this act.
16          (2)   The number of regulated entities served.
17          (3)   The type of regulated entities served.
18   Section 6.   Effective date.
19      This act shall take effect in 60 days.




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