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Module A1: Real Regulatory Schemes

In this module, you'll learn how to model complete legislative frameworks using a systematic three-layer approach. Find a working example at the end.

Learning Objectives

By the end of this module, you will be able to:

  • Apply the three-layer approach to legislative encoding
  • Extract type definitions from statutory text
  • Model deontic rules with proper actors and triggers
  • Track state transitions and register events

The Three-Layer Approach

When encoding legislation, we organize rules into three layers:

Layer What It Contains L4 Constructs
A: Structural Definitions, types, enums DECLARE, glossary
B: Deontic Obligations, permissions, prohibitions MUST, MAY, SHANT
C: Events State transitions, register updates Actions, effects

This mirrors how legislation is typically structured:

  • Early sections define terms
  • Middle sections create duties and powers
  • Later sections specify procedures and consequences

Case Study: Charity Registration

We'll use the Jersey Charities Law as a running example. This real legislation covers:

  • What qualifies as a charity
  • Who can be a governor
  • Filing requirements
  • Enforcement powers

Starting Point: The Legislation

From the Charities (Jersey) Law 2014:

Article 2 - Definitions "charitable purpose" means any of the purposes specified in Schedule 1 "governor" means any person who is responsible for the control and management of the administration of a registered charity "misconduct" includes mismanagement or misapplication of charity property

Article 11 - Registration A charity may apply to the Commissioner for registration by providing: (a) its constitution (b) a statement of its charitable purposes (c) evidence of public benefit (d) core financial information

Layer A: Structural Definitions

First, encode the definitions and types:

§ `Structural Layer - Definitions`

-- Article 2(10): "misconduct" includes mismanagement or misapplication
DECLARE MisconductType IS ONE OF
    Mismanagement
    Misapplication
    OtherMisconduct HAS description IS A STRING

-- Schedule 1: Charitable purposes (13 statutory heads)
DECLARE CharitablePurpose IS ONE OF
    `prevention or relief of poverty`
    `advancement of education`
    `advancement of religion`
    `advancement of health or saving of lives`
    `advancement of citizenship or community development`
    `advancement of arts, culture, heritage or science`
    `advancement of amateur sport`
    `advancement of human rights, conflict resolution, reconciliation`
    `advancement of environmental protection or improvement`
    `relief of those in need`
    `advancement of animal welfare`
    `purposes analogous to charitable purposes`
    `other charitable purpose` HAS description IS A STRING

-- Article 2: Governor definition
DECLARE Governor HAS
    name IS A STRING
    dateOfBirth IS A DATE
    address IS A STRING
    isBankrupt IS A BOOLEAN
    convictions IS A LIST OF Conviction

-- Core financial information (Regulation 1, Core Info Regs 2018)
DECLARE CoreFinancialInfo HAS
    income IS A Money
    expenditure IS A Money
    openingAssets IS A Money
    closingAssets IS A Money
    otherAssets IS A LIST OF Asset

-- Register sections
DECLARE RegisterSection IS ONE OF
    GeneralSection
    RestrictedSection

-- Charity status
DECLARE CharityStatus IS ONE OF
    Pending
    Active
    Suspended HAS
        reason IS A STRING
        date IS A DATE
    Deregistered HAS
        reason IS A STRING
        date IS A DATE
        isRetrospective IS A BOOLEAN

-- Main charity record
DECLARE RegisteredCharity HAS
    name IS A STRING
    registrationNumber IS A STRING
    section IS A RegisterSection
    status IS A CharityStatus
    constitution IS A STRING
    purposes IS A LIST OF CharitablePurpose
    publicBenefitStatement IS A STRING
    governors IS A LIST OF Governor
    financials IS A CoreFinancialInfo
    registrationDate IS A DATE

Key Principle: Glossary-First

Notice how we encode the statutory glossary (Article 2) as types. This:

  1. Prevents ambiguity - MisconductType has exactly three variants
  2. Enables validation - Can only use defined purposes
  3. Documents the source - Comments link to legislation

Layer B: Deontic Rules

Now encode the obligations, permissions, and prohibitions:

§ `Deontic Layer - Rules`

-- Actors in the regulatory system
DECLARE Actor IS ONE OF
    CharityActor HAS charity IS A RegisteredCharity
    GovernorActor HAS governor IS A Governor
    CommissionerActor
    ApplicantActor HAS applicant IS A Applicant

-- Actions that can be performed
DECLARE Action IS ONE OF
    -- Charity obligations
    `file annual return`
    `report change of particulars`
    `report reportable matter` HAS
        matter IS A ReportableMatter
    -- Commissioner powers
    `demand information`
    `issue Required Steps Notice`
    `suspend governor` HAS
        reason IS A STRING
    `deregister charity` HAS
        reason IS A STRING
    -- Governor obligations
    `act in best interests`
    `report conviction`
    -- Appeal actions
    `lodge appeal`

Encoding Individual Rules

Each statutory rule becomes a function:

-- B-AR-01: Annual Return Obligation
-- Article 13(7)-(10) + Timing Order 2019
-- "A registered charity must file an annual return within 2 months of year end"

GIVEN charity IS A RegisteredCharity
GIVETH A DEONTIC Actor Action
`annual return obligation` MEANS
    IF charity's status EQUALS Active
    THEN
        PARTY CharityActor charity
        MUST `file annual return`
        WITHIN 60  -- 2 months ≈ 60 days
        HENCE FULFILLED
        LEST `Commissioner may issue notice` charity
    ELSE FULFILLED

-- B-RSN-01: Commissioner's Power to Issue Notice
-- Article 27(1)-(4)

GIVEN charity IS A RegisteredCharity
GIVETH A DEONTIC Actor Action
`Commissioner may issue notice` MEANS
    PARTY CommissionerActor
    MAY `issue Required Steps Notice`
    HENCE `charity must comply with notice` charity

Rule Identification

Use consistent identifiers for traceability:

ID Type Description
B-AR-01 CONDUCT Annual return filing
B-AR-02 CONDUCT Commissioner publication
B-RSN-01 PROCEDURE Required Steps Notice
B-GOV-01 CONDUCT Governor best interests

Layer C: Events and State Transitions

Track what happens when actions occur:

§ `Event Layer - State Transitions`

-- Events that change the register
DECLARE RegisterEvent IS ONE OF
    CharityRegistered HAS
        charity IS A RegisteredCharity
        date IS A DATE
    CharityMovedToRestricted HAS
        charity IS A RegisteredCharity
        date IS A DATE
    CharityDeregistered HAS
        charity IS A RegisteredCharity
        reason IS A STRING
        date IS A DATE
        isRetrospective IS A BOOLEAN
    AnnualReturnFiled HAS
        charity IS A RegisteredCharity
        year IS A NUMBER
        wasLate IS A BOOLEAN
    RequiredStepsNoticeIssued HAS
        charity IS A RegisteredCharity
        noticeId IS A STRING
        deadline IS A DATE
    GovernorSuspended HAS
        governor IS A Governor
        charity IS A RegisteredCharity
        reason IS A STRING
        period IS A NUMBER

-- Effect of events on register
GIVEN event IS A RegisterEvent
GIVETH A STRING  -- Describes the effect
`event effect` MEANS
    CONSIDER event
    WHEN CharityRegistered c d THEN
        "New active entry created in register"
    WHEN CharityDeregistered c r d retro THEN
        IF retro
        THEN "Entry moved to historic; registration void from earlier date"
        ELSE "Entry moved to historic"
    WHEN AnnualReturnFiled c y late THEN
        IF late
        THEN "Annual return logged with late flag"
        ELSE "Annual return logged"
    WHEN RequiredStepsNoticeIssued c nid deadline THEN
        "Notice reference stored under Art 8(3)(k)"
    OTHERWISE "Register updated"

Handling Cross-References

Legislation often cross-references between sections. Model these explicitly:

-- The charity test (Article 5) references:
-- - Schedule 1 (purposes)
-- - Article 7 (public benefit)
-- - Regulations (core financial info)

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `meets charity test` IF
    `has charitable purposes` charity              -- Schedule 1
    AND `provides public benefit` charity          -- Article 7
    AND `has valid constitution` charity           -- Article 11(2)(a)
    AND `has complete financial info` charity      -- Core Info Regs

-- Article 7: Public benefit factors
GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `provides public benefit` IF
    `has identifiable benefit` charity             -- Art 7(2)(a)
    AND `benefit outweighs detriment` charity      -- Art 7(2)(b)
    AND NOT `unduly restricts beneficiaries` charity  -- Art 7(3)

Handling Amendments

Legislation changes over time. Track versions:

-- Original Law 2014 had 12 charitable purposes
-- R&O 27/2025 added "advancement of animal welfare"

-- Model with effective dates:
DECLARE PurposeWithDate HAS
    purpose IS A CharitablePurpose
    effectiveFrom IS A DATE

-- Check if purpose was valid at a given date
GIVEN purpose IS A CharitablePurpose
      asOfDate IS A DATE
GIVETH A BOOLEAN
DECIDE `purpose valid at date` IF
    -- Animal welfare only valid from 2025
    IF purpose EQUALS `advancement of animal welfare`
    THEN asOfDate >= Date 1 1 2025
    ELSE TRUE  -- Other purposes valid from 2014

Exercise: Encode a Rule

Encode this statutory requirement:

Article 19(1): A governor must notify the Commissioner as soon as practicable if any of the following matters applies to them: (a) bankruptcy (b) disqualification as a company director (c) conviction for an offence involving dishonesty

Solution 
-- Reportable matters under Article 19(1)
DECLARE ReportableMatter IS ONE OF
    Bankruptcy HAS
        date IS A DATE
    DirectorDisqualification HAS
        date IS A DATE
        jurisdiction IS A STRING
    DishonestConviction HAS
        description IS A STRING
        date IS A DATE

-- B-GOV-02: Governor reporting obligation
GIVEN governor IS A Governor
      matter IS A ReportableMatter
GIVETH A DEONTIC Actor Action
`governor reporting obligation` MEANS
    PARTY GovernorActor governor
    MUST `report reportable matter` matter
    WITHIN 14  -- "as soon as practicable" interpreted as 14 days
    HENCE FULFILLED
    LEST `commissioner may suspend` governor

Full Example

-- Module A1: Real Regulatory Schemes - Complete Example
-- Charity Registration System based on Jersey Charities Law 2014
--
-- This file demonstrates the three-layer approach to encoding legislation:
--   Layer A: Structural Definitions (types from statutory glossary)
--   Layer B: Deontic Rules (obligations, permissions, prohibitions)
--   Layer C: Events and State Transitions

IMPORT prelude
IMPORT daydate

-- ============================================================
§ `Layer A: Structural Definitions`
-- ============================================================

-- Supporting types needed by the main definitions

DECLARE Conviction HAS
    `the offence` IS A STRING
    `the date` IS A DATE
    `involves dishonesty` IS A BOOLEAN

DECLARE Money HAS
    amount IS A NUMBER
    currency IS A STRING

DECLARE Asset HAS
    `the description` IS A STRING
    `the value` IS A Money

DECLARE Applicant HAS
    `the name` IS A STRING
    `the contact` IS A STRING

-- Article 2(10): "misconduct" includes mismanagement or misapplication
DECLARE MisconductType IS ONE OF
    Mismanagement
    Misapplication
    OtherMisconduct HAS description IS A STRING

-- Schedule 1: Charitable purposes (13 statutory heads)
DECLARE CharitablePurpose IS ONE OF
    `prevention or relief of poverty`
    `advancement of education`
    `advancement of religion`
    `advancement of health or saving of lives`
    `advancement of citizenship or community development`
    `advancement of arts, culture, heritage or science`
    `advancement of amateur sport`
    `advancement of human rights, conflict resolution, reconciliation`
    `advancement of environmental protection or improvement`
    `relief of those in need`
    `advancement of animal welfare`
    `purposes analogous to charitable purposes`
    `other charitable purpose` HAS description IS A STRING

-- Article 2: Governor definition
DECLARE Governor HAS
    name IS A STRING
    dateOfBirth IS A DATE
    address IS A STRING
    isBankrupt IS A BOOLEAN
    convictions IS A LIST OF Conviction

-- Core financial information (Regulation 1, Core Info Regs 2018)
DECLARE CoreFinancialInfo HAS
    income IS A Money
    expenditure IS A Money
    openingAssets IS A Money
    closingAssets IS A Money
    otherAssets IS A LIST OF Asset

-- Register sections
DECLARE RegisterSection IS ONE OF
    GeneralSection
    RestrictedSection

-- Charity status
DECLARE CharityStatus IS ONE OF
    Pending
    Active
    Suspended HAS
        reason IS A STRING
        date IS A DATE
    Deregistered HAS
        reason IS A STRING
        date IS A DATE
        isRetrospective IS A BOOLEAN

-- Main charity record
DECLARE RegisteredCharity HAS
    name IS A STRING
    registrationNumber IS A STRING
    section IS A RegisterSection
    status IS A CharityStatus
    constitution IS A STRING
    purposes IS A LIST OF CharitablePurpose
    publicBenefitStatement IS A STRING
    governors IS A LIST OF Governor
    financials IS A CoreFinancialInfo
    registrationDate IS A DATE

-- Reportable matters under Article 19(1)
DECLARE ReportableMatter IS ONE OF
    Bankruptcy HAS
        date IS A DATE
    DirectorDisqualification HAS
        date IS A DATE
        jurisdiction IS A STRING
    DishonestConviction HAS
        description IS A STRING
        date IS A DATE

-- ============================================================
§ `Layer B: Deontic Definitions`
-- ============================================================

-- Actors in the regulatory system
DECLARE Actor IS ONE OF
    CharityActor HAS charity IS A RegisteredCharity
    GovernorActor HAS governor IS A Governor
    CommissionerActor
    ApplicantActor HAS applicant IS A Applicant

-- Actions that can be performed
DECLARE Action IS ONE OF
    -- Charity obligations
    `file annual return`
    `report change of particulars`
    `report reportable matter` HAS
        matter IS A ReportableMatter
    -- Commissioner powers
    `demand information`
    `issue Required Steps Notice`
    `suspend governor` HAS
        reason IS A STRING
    `deregister charity` HAS
        reason IS A STRING
    -- Governor obligations
    `act in best interests`
    `report conviction`
    -- Appeal actions
    `lodge appeal`

-- ============================================================
§ `Layer B: Deontic Rules`
-- ============================================================

-- B-AR-01: Annual Return Obligation
-- Article 13(7)-(10) + Timing Order 2019
-- "A registered charity must file an annual return within 2 months of year end"

GIVEN charity IS A RegisteredCharity
GIVETH A DEONTIC Actor Action
`annual return obligation` MEANS
    IF charity's status EQUALS Active
    THEN
        PARTY CharityActor charity
        MUST `file annual return`
        WITHIN 60  -- 2 months approximately 60 days
        HENCE FULFILLED
        LEST `Commissioner may issue notice` charity
    ELSE FULFILLED

-- B-RSN-01: Commissioner's Power to Issue Notice
-- Article 27(1)-(4)

GIVEN charity IS A RegisteredCharity
GIVETH A DEONTIC Actor Action
`Commissioner may issue notice` MEANS
    PARTY CommissionerActor
    MAY `issue Required Steps Notice`
    HENCE `charity must comply with notice` charity

-- B-RSN-02: Charity must comply with notice
-- Article 27(5)

GIVEN charity IS A RegisteredCharity
GIVETH A DEONTIC Actor Action
`charity must comply with notice` MEANS
    PARTY CharityActor charity
    MUST `file annual return`
    WITHIN 30
    HENCE FULFILLED
    LEST BREACH BY CharityActor charity BECAUSE "Failed to comply with Required Steps Notice"

-- B-GOV-02: Governor reporting obligation
-- Article 19(1): A governor must notify the Commissioner as soon as practicable
-- if any reportable matter applies to them

GIVEN governor IS A Governor
      matter IS A ReportableMatter
GIVETH A DEONTIC Actor Action
`governor reporting obligation` MEANS
    PARTY GovernorActor governor
    MUST `report reportable matter` matter
    WITHIN 14  -- "as soon as practicable" interpreted as 14 days
    HENCE FULFILLED
    LEST `commissioner may suspend` governor

-- B-GOV-03: Commissioner may suspend governor
-- Article 29

GIVEN governor IS A Governor
GIVETH A DEONTIC Actor Action
`commissioner may suspend` MEANS
    PARTY CommissionerActor
    MAY `suspend governor` "Failed to report reportable matter"
    HENCE FULFILLED

-- ============================================================
§ `Layer C: Events and State Transitions`
-- ============================================================

-- Events that change the register
DECLARE RegisterEvent IS ONE OF
    CharityRegistered HAS
        charity IS A RegisteredCharity
        date IS A DATE
    CharityMovedToRestricted HAS
        charity IS A RegisteredCharity
        date IS A DATE
    CharityDeregistered HAS
        charity IS A RegisteredCharity
        reason IS A STRING
        date IS A DATE
        isRetrospective IS A BOOLEAN
    AnnualReturnFiled HAS
        charity IS A RegisteredCharity
        year IS A NUMBER
        wasLate IS A BOOLEAN
    RequiredStepsNoticeIssued HAS
        charity IS A RegisteredCharity
        noticeId IS A STRING
        deadline IS A DATE
    GovernorSuspended HAS
        governor IS A Governor
        charity IS A RegisteredCharity
        reason IS A STRING
        period IS A NUMBER

-- Effect of events on register
GIVEN event IS A RegisterEvent
GIVETH A STRING  -- Describes the effect
`event effect` MEANS
    CONSIDER event
    WHEN CharityRegistered c d THEN
        "New active entry created in register"
    WHEN CharityDeregistered c r d retro THEN
        IF retro
        THEN "Entry moved to historic; registration void from earlier date"
        ELSE "Entry moved to historic"
    WHEN AnnualReturnFiled c y late THEN
        IF late
        THEN "Annual return logged with late flag"
        ELSE "Annual return logged"
    WHEN RequiredStepsNoticeIssued c nid deadline THEN
        "Notice reference stored under Art 8(3)(k)"
    OTHERWISE "Register updated"

-- ============================================================
§ `Cross-References and Charity Test`
-- ============================================================

-- The charity test (Article 5) references:
-- - Schedule 1 (purposes)
-- - Article 7 (public benefit)
-- - Regulations (core financial info)

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `meets charity test` IF
    `has charitable purposes` charity              -- Schedule 1
    AND `provides public benefit` charity          -- Article 7
    AND `has valid constitution` charity           -- Article 11(2)(a)
    AND `has complete financial info` charity      -- Core Info Regs

-- Stub: Check if charity has at least one charitable purpose
GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `has charitable purposes` IF
    NOT (null (charity's purposes))

-- Article 7: Public benefit factors
GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `provides public benefit` IF
    `has identifiable benefit` charity             -- Art 7(2)(a)
    AND `benefit outweighs detriment` charity      -- Art 7(2)(b)
    AND NOT `unduly restricts beneficiaries` charity  -- Art 7(3)

-- Stub implementations for public benefit factors
GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `has identifiable benefit` IF
    NOT (charity's publicBenefitStatement EQUALS "")

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `benefit outweighs detriment` IF
    TRUE  -- Would need detailed analysis

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `unduly restricts beneficiaries` IF
    FALSE  -- Would need detailed analysis

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `has valid constitution` IF
    NOT (charity's constitution EQUALS "")

GIVEN charity IS A RegisteredCharity
GIVETH A BOOLEAN
DECIDE `has complete financial info` IF
    charity's financials's income's amount >= 0
    AND charity's financials's expenditure's amount >= 0

-- ============================================================
§ `Handling Amendments - Temporal Validity`
-- ============================================================

-- Original Law 2014 had 12 charitable purposes
-- R&O 27/2025 added "advancement of animal welfare"

-- Model with effective dates:
DECLARE PurposeWithDate HAS
    purpose IS A CharitablePurpose
    effectiveFrom IS A DATE

-- Check if purpose was valid at a given date
GIVEN purpose IS A CharitablePurpose
      asOfDate IS A DATE
GIVETH A BOOLEAN
DECIDE `purpose valid at date` IF
    -- Animal welfare only valid from 2025
    IF purpose EQUALS `advancement of animal welfare`
    THEN asOfDate >= Date 1 1 2025
    ELSE TRUE  -- Other purposes valid from 2014

-- ============================================================
§ `Test Data`
-- ============================================================

-- Sample governor
`John Smith` MEANS Governor WITH
    name IS "John Smith"
    dateOfBirth IS Date 15 6 1975
    address IS "123 Main Street, St Helier"
    isBankrupt IS FALSE
    convictions IS EMPTY

-- Sample financial info
`sample financials` MEANS CoreFinancialInfo WITH
    income IS Money WITH amount IS 50000, currency IS "GBP"
    expenditure IS Money WITH amount IS 45000, currency IS "GBP"
    openingAssets IS Money WITH amount IS 100000, currency IS "GBP"
    closingAssets IS Money WITH amount IS 105000, currency IS "GBP"
    otherAssets IS EMPTY

-- Sample active charity
`Acme Animal Shelter` MEANS RegisteredCharity WITH
    name IS "Acme Animal Shelter"
    registrationNumber IS "JC-2024-001"
    section IS GeneralSection
    status IS Active
    constitution IS "Standard charitable constitution"
    purposes IS LIST `advancement of animal welfare`
    publicBenefitStatement IS "Provides shelter and care for abandoned animals in Jersey"
    governors IS LIST `John Smith`
    financials IS `sample financials`
    registrationDate IS Date 15 1 2024

-- ============================================================
§ `Test Traces`
-- ============================================================

-- Test 1: Active charity files annual return on time
#TRACE `annual return obligation` `Acme Animal Shelter` AT 0 WITH
    PARTY CharityActor `Acme Animal Shelter` DOES `file annual return` AT 30

-- Test 2: Active charity misses deadline, commissioner issues notice
#TRACE `annual return obligation` `Acme Animal Shelter` AT 0 WITH
    (`WAIT UNTIL` 70)

-- Test 3: Governor reports bankruptcy promptly
`bankruptcy matter` MEANS Bankruptcy (Date 1 7 2024)
#TRACE `governor reporting obligation` `John Smith` `bankruptcy matter` AT 0 WITH
    PARTY GovernorActor `John Smith` DOES `report reportable matter` `bankruptcy matter` AT 10

-- Test 4: Governor fails to report, commissioner may suspend
#TRACE `governor reporting obligation` `John Smith` `bankruptcy matter` AT 0 WITH
    (`WAIT UNTIL` 20)

-- ============================================================
§ `Evaluations`
-- ============================================================

-- Check if Acme Animal Shelter meets the charity test
#EVAL `meets charity test` `Acme Animal Shelter`

-- Check public benefit
#EVAL `provides public benefit` `Acme Animal Shelter`

-- Check if animal welfare purpose was valid in 2024
#EVAL `purpose valid at date` `advancement of animal welfare` (Date 1 6 2024)

-- Check if animal welfare purpose is valid in 2025
#EVAL `purpose valid at date` `advancement of animal welfare` (Date 1 6 2025)

-- Check effect of registration event
`registration event` MEANS CharityRegistered `Acme Animal Shelter` (Date 15 1 2024)
#EVAL `event effect` `registration event`

-- Check effect of late filing event
`late filing event` MEANS AnnualReturnFiled `Acme Animal Shelter` 2024 TRUE
#EVAL `event effect` `late filing event`

Summary

Layer Purpose L4 Approach
A: Structural Definitions DECLARE types from glossary
B: Deontic Rules MUST/MAY/SHANT functions
C: Events Transitions Event types + effects

Key practices:

  • Start with the statutory glossary (definitions section)
  • Assign rule IDs for traceability
  • Model cross-references explicitly
  • Track temporal validity for amendments

What's Next?

In Module A2: Cross-Cutting Concerns, you'll learn patterns for timing, notices, appeals, and other concerns that span multiple rules.