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.