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
Providing for regulatory compliance.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the State Agency
Regulatory Compliance Officer Act.
Section 2. Findings and declarations.
The General Assembly finds and declares as follows:
(1) It is the purpose of this act for agencies to work
collaboratively with, instead of acting punitively toward,
regulated communities.
(2) Agencies should strive to make the regulations which
the agencies administer and enforce as clear and easily
navigable as possible for regulated communities.
(3) In administering a regulation, an agency's primary
goal should be to ensure compliance rather than to exact
punishment.
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Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." As defined in section 3 of the act of June 25,
1982 (P.L.633, No.181), known as the Regulatory Review Act.
"Regulated entity." An entity regulated by an agency.
Section 4. Powers and duties.
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 act, including:
(i) Educating affected regulated entities on the
implementation of new or amended statutes and regulations
prior to the effective date of implementation, to the
extent practicable and during implementation.
(ii) Establishing clear channels of communication
through which regulated entities can contact the agency
with questions or concerns regarding regulations.
(iii) Working with regulated entities to resolve
noncompliance issues before imposition of penalties.
(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
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with respect to the person's duties under a regulation of the
agency. The following shall apply:
(i) The opinion shall be provided within 20 business
days of the request, provided that the time may be
extended for good cause.
(ii) It 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:
(A) the requester, at least 20 business days
prior to the alleged violation, requested an opinion
from the agency's regulatory compliance officer in
good faith, disclosed truthfully all the material
facts and committed the acts complained of in
reliance on the advice in an opinion issued under
this paragraph; or
(B) the regulatory compliance officer failed to
provide an opinion within 20 business days, or any
later extended time, of the request and the committed
acts complained of were the subject of the request.
(4) To empower the regulation compliance officer to
establish guidelines for waiving 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 the entity has
taken or will take to remedy the violation.
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(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 regulation compliance officer position.
(6) To establish clear channels of communication through
which persons seeking to become a regulated entity can
contact the agency with questions or concerns relating to
starting a business and future compliance with regulations.
Section 5. Annual report.
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 toward
compliance with this act.
(2) The number of regulated entities served.
(3) The type of regulated entities served.
Section 6. Effective date.
This act shall take effect in 60 days.
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