HCS HB 1147 -- ENVIRONMENTAL AUDITS

SPONSOR:  Bivins

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Energy and Environment by a vote of 5 to 4.

This substitute establishes some immunity from civil and criminal
actions for certain companies subject to environmental
regulation. Companies that comply with the audit requirements are
generally exempted from criminal liability for problems
discovered by the specified voluntary audit procedures, unless
there is an intentional scheme to violate environmental
regulations.  Prosecutors are not allowed to make use of the
audit reports for civil or criminal purposes.  Economic damages
for noncompliance discovered through methods that meet the audit
requirements are generally limited to the benefits gained by the
company because of its noncompliance.

In order to comply with the audit requirements, a company must:

(1)  Discover its noncompliance through voluntary internal
procedures or audits;

(2)  Disclose its noncompliance to the Department of Natural
Resources within 21 days;

(3)  Make the disclosure prior to several types of legal actions
and regulatory investigations;

(4)  Correct the noncompliance within 60 days or as determined by
the department;

(5)  Take steps to prevent future noncompliance;

(6)  Show that the specific noncompliance was not part of a
pattern and did not occur in the previous three years;

(7)  Show that the noncompliance did not cause serious actual
harm or violate any administrative order or consent agreement;
and

(8)  Provide certain required information to the department.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say the bill encourages voluntary audits
and will encourage small businesses to be environmentally
conscious.

Testifying for the bill were Representative Bivins; St. Louis
Regional Chamber and Growth Association; Chemistry Council of
Missouri; Missouri Concrete Association; Mining Industry Council
of Missouri; and Missouri Chamber of Commerce and Industry.

OPPONENTS:  Those who oppose the bill say that self auditing is
ineffective and that immunity should not be allowed.  The bill
might also be unnecessary, and the federal Environmental
Protection Agency does not favor the codification of regulations
in state law.  Audit reports should also be available to the
public.

Testifying against the bill were United Steelworkers of America,
District 11; Office of the Attorney General; Missouri Votes
Conservation; Missouri Press Association; Sierra Club; and Rhonda
Terry, Missouri Rural Crisis Center.

Jason Glahn, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am