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PRINTER'S NO. 3382
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2497
Session of
2026
INTRODUCED BY BURGOS, KHAN, HILL-EVANS, SANCHEZ, McNEILL,
VENKAT, WAXMAN, CEPEDA-FREYTIZ, BOROWSKI, CIRESI, PARKER AND
CURRY, MAY 7, 2026
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MAY 8, 2026
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, providing for event outcome prediction wagering;
imposing duties on the Pennsylvania Gaming Control Board and
the Department of Revenue; imposing an event outcome
prediction wagering tax and local share assessment;
establishing restricted receipt accounts within the State
Gaming Fund and the Commonwealth Financing Authority; and
imposing penalties.
The General Assembly finds and declares that a regulatory
framework at the State level for event outcome prediction
wagering is necessary, in light of the adoption of a
noninterference approach by the Commodity Futures Trading
Commission, to regulate prediction markets.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 13G
EVENT OUTCOME PREDICTION WAGERING
Subchapter
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A. Preliminary Provisions
B. Licensing
C. Operations
D. Enforcement and Penalties
E. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
13G01. Scope of chapter.
13G02. Definitions.
§ 13G01. Scope of chapter.
This chapter relates to the implementation, administration
and enforcement of event outcome prediction wagering.
§ 13G02. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." An event outcome prediction wagering platform
that applies for an event outcome prediction wagering license.
"Application." An application for an event outcome
prediction wagering license under section 13G14 (relating to
application).
"Digital service." An Internet website or mobile
application.
"Event contract." A wagering agreement between an event
outcome prediction wagering platform and an individual that:
(1) Serves as the basis for event outcome prediction
wagering.
(2) Provides a payout based on the occurrence or
nonoccurrence of a specified future event or circumstance,
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which may involve an election, the weather, awards, sports
competitions or any other economic, political or social event
or circumstance.
"Event outcome prediction wagering" or "wagering." As
follows:
(1) The business of accepting wagers, setting odds to
ensure a profit margin, making payouts and managing related
transactions through an event contract by any system or
method of wagering, including a digital service.
(2) The term includes exchange wagering, parlays, over-
under, moneyline, pools and straight bets regarding a
prediction market.
(3) The term does not include:
(i) Pari-mutuel betting on the outcome of
thoroughbred or harness horse racing as authorized under
3 Pa.C.S. Ch. 93 (relating to race horse industry
reform).
(ii) Lottery games of the Pennsylvania State Lottery
as authorized under the act of August 26, 1971 (P.L.351,
No.91), known as the State Lottery Law.
(iii) Bingo as authorized under the act of July 10,
1981 (P.L.214, No.67), known as the Bingo Law.
(iv) Small games of chance as authorized under the
act of December 19, 1988 (P.L.1262, No.156), known as the
Local Option Small Games of Chance Act.
(v) Slot machine gaming and progressive slot machine
gaming as defined and authorized under this part.
(vi) Keno.
(vii) Fantasy contests.
(viii) iLottery under Chapter 5 (relating to
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lottery).
"Event outcome prediction wagering license" or "license." A
license to conduct event outcome prediction wagering that:
(1) is issued by the board under this chapter; and
(2) authorizes an event outcome prediction wagering
platform to conduct event outcome prediction wagering in
accordance with this chapter.
"Event outcome prediction wagering licensee" or "licensee."
An event outcome prediction wagering platform to whom the board
has issued an event outcome prediction wagering license.
"Event outcome prediction wagering platform" or "platform."
A digital service or clearinghouse designed to facilitate event
outcome prediction wagering.
"Gross event outcome prediction wagering revenue." As
follows:
(1) The total money received by an event outcome
prediction wagering licensee from event outcome prediction
wagering minus the total of:
(i) Money paid to participants as a result of the
wagering.
(ii) Money paid to purchase annuities to fund prizes
payable to participants over a period of time as a result
of the wagering.
(2) The term does not include money taken in a
fraudulent act perpetrated against the licensee for which the
licensee is not reimbursed.
"Participant." An individual who executes an event contract,
whether or not the individual has commenced the event outcome
prediction wagering.
"Records." As follows:
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(1) Information regarding event outcome prediction
wagering that is:
(i) Inscribed on a tangible medium or stored in an
electronic or other medium.
(ii) Retrievable in perceivable form.
(iii) Aggregated or segregated in a manner
prescribed by the board.
(2) The term includes books, accounts, documents, data
and other materials, including applications and their
determinations, event contracts, financial information and
other relevant information as prescribed by the board.
SUBCHAPTER B
LICENSING
Sec.
13G11. Wagering authorized.
13G12. License required.
13G13. Restrictions on wagering.
13G14. Application.
13G15. Review and determination.
13G16. Issuance of license.
13G17. Term of license.
13G18. License renewal.
13G19. Fees.
§ 13G11. Wagering authorized.
An event outcome prediction wagering platform may conduct
event outcome prediction wagering in accordance with this
chapter through the issuance of an event outcome prediction
wagering license.
§ 13G12. License required.
Before conducting event outcome prediction wagering, an event
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outcome prediction wagering platform must obtain a license in
accordance with this subchapter.
§ 13G13. Restrictions on wagering.
(a) Age of participants.--An individual under 21 years of
age may not participate in event outcome prediction wagering.
(b) Criminal purpose.--An individual may not participate in
event outcome prediction wagering for a criminal or improper
purpose, including:
(1) Money laundering.
(2) Insider trading.
(3) The use of nonpublic information that the individual
has acquired as a result of the individual's employment,
position or social or business connections, or otherwise, to
achieve a financial or other benefit.
(c) Sensitive matters.--The board may restrict event outcome
prediction wagering involving sensitive economic, political or
social events or circumstances, including:
(1) The conduct of an election, if the event outcome
prediction wagering could affect the outcome of the election.
(2) Military conflicts.
(3) Natural disasters.
(4) Judicial rulings.
§ 13G14. Application.
(a) Authorization.--A n event outcome prediction wagering
platform may file an application for an event outcome prediction
wagering license. The application shall be in a form and manner
prescribed by the board.
(b) Contents.--An application must include the following:
(1) The name, business address and contact information
of the applicant.
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(2) The name, business address, job title and a
photograph, consistent with standards prescribed by the
board, of each principal and key employee of the applicant
who will be involved in conducting the wagering.
(3) A brief description of the economic benefits
expected to be realized by the Commonwealth, its
municipalities and its residents if the wagering is
authorized.
(4) The details of any financing obtained or that will
be obtained to adequately fund the cost of commencing the
wagering.
(5) Information and documentation, as the board may
require, to establish by clear and convincing evidence that
the applicant:
(i) Can demonstrate, through financial background
and resources, the financial stability, integrity and
responsibility to establish and maintain a successful
wagering operation.
(ii) Has sufficient business ability and experience
to establish and maintain a successful wagering
operation.
(iii) Has or will have the financial ability to pay
the license fee under section 13G19 (relating to fees).
(6) For each principal and key employee of the applicant
who will be involved in conducting the wagering, c onsent to a
background investigation to be conducted by the bureau, which
shall include fingerprinting in accordance with subsection
(c).
(7) Other information as the board may require.
(c) Fingerprinting.--E ach principal and key employee of the
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applicant who will be involved in conducting the wagering shall
submit to fingerprinting by the Pennsylvania State Police or an
authorized agent of the Pennsylvania State Police. The
Pennsylvania State Police or the authorized agent shall submit
the fingerprints to the Federal Bureau of Investigation for the
purposes of verifying the identity of the individual and
obtaining records of criminal arrests and convictions.
(d) Confidentiality.--Information submitted to the board
under subsection (b)(4) and (5) may be considered confidential
by the board if the information would be confidential under
section 1206(f) (relating to board minutes and records).
§ 13G15. Review and determination.
(a) Timing and basis of determination.--Within 120 days of
the receipt of a completed application for a license, the board
shall review and determine whether to approve the application
and grant a license to the applicant, based on:
(1) Whether the applicant has demonstrated that the
information and documentation provided in the application are
accurate and complete.
(2) The background investigation for each principal and
key employee of the applicant who will be involved in
conducting the wagering.
(3) Other information as the board may require.
(b) Notice.--The board shall provide written notice of its
determination under subsection (a), subject to the following:
(1) If the board approves the application for the
license, the board shall specify any conditions for approval.
(2) If the board disapproves the application for the
license, in whole or in part, the board shall provide the
applicant with the reasons for the disapproval, and the
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applicant may file a new or amended application, as
prescribed by the board.
§ 13G16. Issuance of license.
(a) Issuance generally.--Upon approval of an application for
a license, the board shall issue a license to the applicant,
subject to the requirements under this chapter and any
conditions prescribed by the board.
(b) Payment of fee.--The issuance of a license prior to the
payment in full of the fee required by section 13G19 (relating
to fees) shall not relieve the applicant from complying with the
provisions of section 13G19.
(c) Conditions.--As part of its approval of a license, the
board may attach conditions that the applicant must fulfill
prior to or after the issuance of the license.
§ 13G17. Term of license.
(a) Validity.--A license shall be valid for one year,
subject to:
(1) the denial, renewal or suspension of the license by
the board in accordance with this chapter; or
(2) the relinquishment of the license by the licensee.
(b) Renewal.--Notwithstanding section 1326 (relating to
renewals), a license may be renewed in accordance with section
13G18 (relating to license renewal).
§ 13G18. License renewal.
(a) Authorization.--A licensee may seek to renew a license.
(b) Procedures.--The board shall prescribe the process for
the renewal of a license, including:
(1) The form of the application for the license renewal,
based on the information required under section 13G14
(relating to application).
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(2) The manner in which the application for the license
renewal must be filed with the board, including deadlines for
filing.
(3) The schedule for determining whether to approve the
application for the license renewal.
(4) The schedule for compliance with any condition that
the board has prescribed in connection with the license
renewal.
(5) Any other procedure that the board may require.
(c) Term.--A license renewal shall be valid for one year.
(d) Payment of fee.--The issuance of a license renewal for a
licensee prior to the payment in full of the license renewal fee
required by section 13G19 (relating to fees) shall not relieve
the licensee from complying with the provisions of section
13G19.
§ 13G19. Fees.
(a) Amount.--
(1) Each licensee shall pay a nonrefundable license fee,
as part of the license to conduct wagering, in the amount of
$1,000,000.
(2) Each licensee seeking a license renewal shall pay a
nonrefundable license renewal fee, as part of the license
renewal to conduct wagering, in the amount of $1,000,000.
(b) Payment.--Subject to subsection (c), a licensee shall
remit the license fee or license renewal fee under subsection
(a) to the board within 60 days of the approval of the
application for the license or license renewal.
(c) Failure to pay by deadline.--If a licensee fails to pay
the required license fee or license renewal fee in full within
the period specified in subsection (b), the board:
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(1) Shall impose a penalty on the licensee as prescribed
by the board.
(2) M ay grant the licensee up to a six-month extension
to pay the license fee or license renewal fee, or any
remaining portion of the license fee or license renewal fee,
and the penalty.
(d) License suspension.--The board shall suspend the license
of a licensee if the licensee fails to pay the total license fee
or license renewal fee and the penalty prior to the expiration
of an extension period granted under subsection (c)(2). The
suspension shall remain in effect until final payment is made.
(e) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all license fees, license
renewal fees and penalties imposed in accordance with this
section shall be deposited into the General Fund.
SUBCHAPTER C
OPERATIONS
Sec.
13G21. Commencement of event outcome prediction wagering
operations.
13G22. General duties of licensee.
13G23. Records.
13G24. Consumer protections.
13G25. Disclosures.
13G26. Wagering tax.
13G27. Local share assessment.
13G28. Compulsive and problem gambling.
13G29. Criminal activity.
§ 13G21. Commencement of event outcome prediction wagering
operations.
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An event outcome prediction wagering licensee may not conduct
event outcome prediction wagering until the board determines
that the licensee:
(1) Is in compliance with the requirements of this
chapter, including the payment in full of the license fee
under section 13G19 (relating to fees).
(2) Has satisfied all the required conditions prescribed
by the board and is prepared in all respects to conduct the
wagering.
§ 13G22. General duties of licensee.
A licensee shall:
(1) Upon request, provide the board with information
regarding processes to ensure:
(i) The accuracy and security of wagering
operations, including internal audit protocols to
safeguard assets and revenues.
( ii) Reliable financial and other records, accounts
and reports.
(iii) The separate nature of deposits made by
participants for wagering and operating expenses of the
licensee.
(2) Consistent with regulations of the board, establish
procedures for:
(i) The development and execution of an event
contract.
( ii) The receipt of wagers.
(iii) The disbursement of payouts.
(iv) The payment of license fees, license renewal
fees, penalties and taxes.
(v) The maintenance of records.
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(vi) The inspection or release of information for
the purpose of investigations and audits in accordance
with this chapter.
(vii) The security of wagering operations, including
general operating protocols for wagering.
(viii) Providing information to the board for the
implementation, administration and enforcement of this
chapter.
§ 13G23. Records.
(a) Condition for continued operations.--As a condition of
continued operation of event outcome prediction wagering under a
license, a licensee shall maintain records pertaining to the
wagering and the participants in a manner and location within
this Commonwealth as prescribed by the board.
(b) Nature of records.--Records shall be:
(1) Segregated by separate accounts within the
licensee's records.
(2) Immediately available for inspection upon request of
the board, the bureau, the department, the Pennsylvania State
Police or the Attorney General, or agents thereof, to
determine compliance with this chapter.
(3) Submitted for audit as prescribed by the board.
(4) Maintained for a period as prescribed by the board.
§ 13G24. Consumer protections.
(a) Self-exclusion list.--An event contract must contain a
statement that a participant may request, and that a licensee
must honor the request, that the participant be placed on a
self-exclusion list to restrict the participant from making a
wager in accordance with the event contract for a specified
period.
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(b) Cooling off period.--An event contract must contain a
statement that a participant may cancel the event contract for
any reason within three days of signing the event contract, by
providing to the licensee written notice, or other notice as
specified in the event contract, of the cancellation. Short-term
wagering under an event contract may not occur until the three-
day period has lapsed.
(c) Secure transactions.--A licensee shall ensure that
financial transactions and the submittal of other information
regarding wagering operations are secure and that any financial
or other information remains confidential in accordance with
Federal and State law, subject to any investigation or audit
authorized under this chapter.
(d) Resolution of disputes.--An event contract must contain
information on how a participant may file a complaint with the
board regarding a dispute over the wagering or any other matter
contained in the event contract.
§ 13G25. Disclosures.
Each licensee shall ensure that:
(1) The fees and conditions regarding its event outcome
prediction wagering are disclosed under an event contract in
a clear, concise and understandable manner to participants.
(2) The rights of participants regarding wagering are
disclosed under an event contract in a clear, concise and
understandable manner to participants.
§ 13G26. Wagering tax.
(a) Imposition.--Each licensee shall report to the
department and pay from its daily gross event outcome prediction
wagering revenue, on a form and in the manner prescribed by the
department, a tax of 20% of the daily gross event outcome
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prediction wagering revenue.
(b) Deposits and distributions.--
(1) The tax imposed under subsection (a) shall be:
(i) Payable to the department on a weekly basis.
(ii) Based upon gross event outcome prediction
wagering revenue derived during the previous week.
(2) All money owed to the Commonwealth under this
section shall be held in trust for the Commonwealth by the
licensee until the money is paid to the department.
(3) A licensee shall establish a separate bank account
into which gross event outcome prediction wagering revenue
shall be deposited and maintained until the time that the
money is paid to the department under this section or paid
into the fund under section 13G27(a) (relating to local share
assessment).
(4) The tax imposed under subsection (a) shall be
deposited into the General Fund.
§ 13G27. Local share assessment.
(a) Imposition.--In addition to the tax imposed under
section 13G26 (relating to wagering tax), each licensee shall
pay on a weekly basis, on a form and in the manner prescribed by
the department, a local share assessment into a restricted
receipt account established within the fund.
(b) Deposits and distributions.--
(1) A ll money owed under this section shall be held in
trust by the licensee until the money is paid into the
account described in subsection (a).
(2) Money in the account described in subsection (a) is
appropriated to the department on a continuing basis for the
purposes specified under this section.
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(3) The department shall, on a quarterly basis, make
distributions from the local share assessments deposited into
the account described in subsection (a) into a restricted
receipt account established in the Commonwealth Financing
Authority to be used exclusively for grants for projects in
the public interest in this Commonwealth.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Local share assessment." Two percent of a licensee's daily
gross event outcome prediction wagering revenue.
§ 13G28. Compulsive and problem gambling.
(a) Transfer to Compulsive and Problem Gambling Treatment
Fund.--Each year, from the tax imposed under section 13G 26
(relating to wagering tax), an amount equal to 0.002 multiplied
by the total gross event outcome prediction wagering revenue of
all active and operating licensees shall be transferred into the
Compulsive and Problem Gambling Treatment Fund established under
section 1509 (relating to compulsive and problem gambling
program).
(b) Transfer to Department of Drug and Alcohol Programs.--
Each year, from the tax imposed under section 13G26 , an amount
equal to 0.002 multiplied by the total gross event outcome
prediction wagering revenue of all active and operating
licensees shall be transferred to the Department of Drug and
Alcohol Programs or a successor agency to be used for drug and
alcohol addiction treatment services, including treatment for
drug and alcohol addiction related to compulsive and problem
gambling, as specified in section 1509.1 (relating to drug and
alcohol treatment).
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§ 13G29. Criminal activity.
Event outcome prediction wagering conducted by a licensee in
accordance with this chapter shall not constitute a criminal
activity under 18 Pa.C.S. § 5514 (relating to pool selling and
bookmaking).
SUBCHAPTER D
ENFORCEMENT AND PENALTIES
Sec.
13G31. Noncompliance generally.
13G32. Unauthorized wagering.
§ 13G31. Noncompliance generally.
An event outcome prediction wagering licensee that fails to
comply with the requirements of this chapter shall be subject to
administrative sanctions imposed by the board, including the
suspension or revocation of an event outcome prediction wagering
license, or other penalties authorized under this part.
§ 13G32. Unauthorized wagering.
(a) Offense defined.--
( 1) A person may not c onduct event outcome prediction
wagering, including entering into event contracts, if the
person:
(i) does not have a valid license; or
(ii) is not in compliance with the requirements of
this chapter.
(2) A person may not knowingly provide services with
respect to event outcome prediction wagering if the event
outcome prediction wagering is conducted by a person without
a valid license.
(3) An individual may not knowingly participate in event
outcome prediction wagering if:
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(i) the event outcome prediction wagering is
conducted by a person without a valid license; or
(ii) the individual is under 21 years of age.
(b) Grading of offense.--
(1) A person that violates subsection (a)(1):
(i) For a first violation, commits a misdemeanor of
the first degree and shall, upon conviction, be sentenced
to pay a fine of not more than $10,000.
(ii) For a second or subsequent violation, commits a
felony of the second degree and shall, upon conviction,
be sentenced to pay a fine of not more than $25,000.
(2) A person that violates subsection (a)(2):
(i) For a first violation, commits a misdemeanor of
the first degree and shall, upon conviction, be sentenced
to pay a fine of not more than $10,000.
(ii) For a second or subsequent violation, commits a
felony of the second degree and shall, upon conviction,
be sentenced to pay a fine of not more than $25,000.
(3) An individual who violates subsection (a)(3):
(i) For a first violation, commits a misdemeanor of
the first degree and shall, upon conviction, be sentenced
to pay a fine of not more than $10,000.
(ii) For a second or subsequent violation, commits a
felony of the second degree and shall, upon conviction,
be sentenced to pay a fine of not more than $20,000.
( c) Forfeiture.--
(1) I f a person conducts wagering in violation of
subsection (a)(1), the person shall forfeit all winnings that
resulted from the wagering.
(2) The forfeited winnings under paragraph (1) shall be
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deposited into the Compulsive and Problem Gambling Treatment
Fund established under section 1509(b) (relating to
compulsive and problem gambling program).
(d) Tax liability.-- A person that conducts wagering in
violation of subsection (a)(1)(i) shall be liable for all taxes
required by this chapter in the same manner and amounts as if
the person were a licensee.
(e) Deposit of fines.--All fines imposed in accordance with
subsection (b) shall be deposited into the General Fund.
SUBCHAPTER E
MISCELLANEOUS PROVISIONS
Sec.
13G41. Regulatory authority.
13G42. Temporary regulations.
§ 13G41. Regulatory authority.
In accordance with this chapter, the board shall promulgate
regulations that establish standards and procedures for the
implementation, administration and enforcement of event outcome
prediction wagering, including:
(1) The form and manner of submitting an application for
a license to conduct the wagering, including consent to
conduct a background investigation.
(2) The form and contents of an event contract.
(3) The conduct of the wagering, including:
(i) The manner in which wagers are received, payouts
are remitted and point spreads, lines, odds and other
related matters are determined under an event contract.
(ii) Notice regarding minimum and maximum wagers for
the wagering.
(iii) An age verification system, to ensure that
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individuals who are under 21 years of age do not
participate in the wagering.
(iv) Safeguards to ensure against money laundering,
insider trading or other activity involving a criminal or
improper purpose.
(v) The restriction on wagering involving sensitive
economic, political or social events or circumstances.
(4) In consultation with the department, the method for
calculating gross event outcome prediction wagering revenue
and for the daily counting and recording of cash and cash
equivalents received in the conduct of the wagering,
including ensuring that internal controls are followed,
financial books and records are maintained and audits are
conducted.
(5) Assistance with compulsive and problem gambling
relating to the wagering.
(6) Providing information relating to the wagering in
the board's annual report required under section 1211(a.1)
(relating to reports of board).
(7) How to provide written information to the board by
each licensee regarding the wagering, including rules,
payouts and other related matters specified in an event
contract.
(8) Specifications regarding the security of information
provided in an event contract and submitted through a digital
service.
(9) Access by the board to information regarding event
contracts and digital services used in the wagering to ensure
compliance with this chapter.
(10) The maintenance and organization of records.
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(11) The complaint and dispute resolution process
regarding wagering and actions taken in the performance of
duties under an event contract.
(12) The amount and payment of the penalty described
under section 13G19 (relating to fees).
§ 13G42. Temporary regulations.
(a) Authorization.--No later than one year after the
effective date of this subsection, to facilitate the prompt
implementation of this chapter, the department shall issue
temporary regulations as may be necessary and appropriate to
implement, administer and enforce this chapter. Regulations
adopted after this one-year period shall be promulgated as
provided by statute.
(b) Notice.-- Upon the issuance of the temporary regulations,
the department shall transmit notice of the issuance of the
temporary regulations to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin.
(c) Posting.--The department shall post the temporary
regulations on its publicly accessible Internet website.
(d) Expiration.--The temporary regulations shall expire no
later than two years following publication of the temporary
regulations in accordance with subsection (b).
(e) Exemption from certain laws.--The temporary regulations
shall be exempt from the following:
(1) Section 612 of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929.
(2) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
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(3) Sections 204(b) and 301(10) of the act of October
15, 1980 (P.L.950, No.164), known as the Commonwealth
Attorneys Act.
(4) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(f) Permanent regulations.--Prior to the expiration of the
temporary regulations, the department shall propose for approval
permanent regulations as provided by statute and in accordance
with section 13G41 (relating to regulatory authority).
Section 2. This act shall take effect as follows:
(1) The addition of 4 Pa.C.S. § 13G42 shall take effect
in 60 days.
(2) This section shall take effect immediately.
(3) The remainder of this act shall take effect upon the
publication of the notice described in 4 Pa.C.S. § 13G42(b).
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