HBA-KMH C.S.H.B. 3281 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3281
By: Maxey
Environmental Regulation
4/29/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas is one of 25 states that has enacted some form of environmental audit
privilege or immunity legislation.  State audit policies encourage the use
of audits and disclosure of violations discovered during an audit.
Organizations use them to measure compliance with environmental
regulations, identify problems early and correct them quickly, provide
assurance that pollution control systems are functioning properly, and
improve the overall environmental program by making it more proactive.
Unique to the Texas Environmental, Health, and Safety Audit Privilege Act,
is the statutory provision requiring advance notification that an audit is
about to begin.  The provision has allowed the Texas Natural Resource
Conservation Commission to track the audit activity and violation
disclosures since the implementation of the statute in 1995.  Historical
violation information, by similar industry, could help focus attention and
resources on common problems to help prevent future violations. 

C.S.H.B. 3281 authorizes the dissemination of information relating to
common and significant violations of environmental and health and safety
laws by an agency to which this information has been disclosed. 

During a joint compliance and enforcement review project by the Texas
Natural Resource Conservation Commission (TNRCC) and the Texas State
Auditor's Office, the findings revealed that despite numerous improvements
further actions were needed to improve operations in key risk areas; one of
those areas includes meeting compliance enforcement information needs.
Historical violation information, which could help focus inspections on
common problems, is not consistently or comprehensively available.  At this
time the agency is unable to analyze historical violations, identify
noncompliance patterns and consistently communicate this information to the
regulated community.  
C.S.H.B. 3281 authorizes the dissemination of information relating to
common and significant violations of environmental and health and safety
laws by a state agency. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 4447cc, V.T.C.S. (Texas Environmental, Health,
and Safety Audit Privilege Act), by adding Section 14, as follows: 

Sec.  14.  AUTHORITY OF STATE AGENCY TO REPORT TO REGULATED ENTITY ON
VIOLATIONS.  Authorizes a state agency to which violations of environmental
or health and safety laws are disclosed under this article to provide a
regulated entity or an entity representing regulated entities a summary of
common and significant violations of those laws in order to help prevent
future violations, notwithstanding Section 5 of this article.   Provides
that a summary of violations is not required to include any violation
disclosed to the agency before September 1, 1999. Provides that this
section does not authorize a state agency to disclose information that
would permit identification of a violation by any particular person. 

 SECTION 2.  Amends Chapter 1, Title 71, V.T.C.S., by adding Article
4447dd, as follows: 

Art.  4447dd.  AUTHORITY OF STATE AGENCY TO REPORT TO REGULATED ENTITIES ON
VIOLATIONS.  Authorizes a state agency to provide regulated entities
summaries of common and significant violations of environmental or health
and safety laws other than violations disclosed to the agency under Article
4447cc, V.T.C.S. (Texas Environmental, Health, and Safety Audit Privilege
Act), in order to help prevent future violations. Provides that a summary
of violations is not required to include any violation disclosed to the
agency before September 1, 1999. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3281 modifies the original in SECTION 1 to change the proposed
title to "Authority of State Agency to Report to Regulated Entity on
Violations" from "Authority of State Agency to Report to Regulated
Industries on Violations."  The substitute also makes reference to a
regulated entity or entities, rather than a regulated industry or members
of that industry.  Additionally, the substitute provides that this section
does not authorize a state agency to disclose information that would permit
identification of a violation by any particular person. Provides that a
summary of violations is not required to include any violation disclosed to
the agency before September 1, 1999. 

C.S.H.B. 3281 modifies the original by redesignating SECTION 2 as SECTION 3
(long emergency clause) and adding new SECTION 2 (proposed Article 4447dd,
V.T.C.S.) to authorize a state agency to provide regulated entities
summaries of common and significant violations of environmental or health
and safety laws other than violations disclosed to the agency under the
Texas Environmental, Health, and Safety Audit Privilege Act. Furthermore,
the substitute provides that a summary of violations is not required to
include any violation disclosed to the agency before September 1, 1999.