Below is the HillCo client report from the August 5 House Homeland Security and Public Safety Committee hearing.

The committee met to consider draft legislation regarding the storage of ammonium nitrate and the authority of first responders to inspect and respond to safety concerns, and draft legislation regarding the Texas Driver Responsibility Program.

Ammonium Nitrate Storage Facilities
 
Chairman Joe Pickett

  • Under the draft legislation fire chiefs, fire marshals, emergency responders, city fire departments, and county emergency response entities will have to develop an emergency response plan/inspection process in the event of a fertilizer storage facility emergency; county commissioners and city councils likely won’t have to act on the proposed legislation
  • Chairman Pickett hopes to improve the working draft legislation on ammonium nitrate storage guidelines introduced at the last meeting and encourages suggestions/recommendations:
    • Chairman Pickett suggests creating an working group composed of fire chiefs, local government, ag business, and state agencies to review proposed draft legislation
    • Expected changes in the storage of ammonium nitrate won’t occur for at least 3 years
    • Chairman Pickett is concerned the National Fire Code is overly complex and too confusing and hopes for suggestions as an alternative to using the NFC as a guideline
    • The storage regulations would still require ammonium nitrate be reported within 72 hours rather than 90 days
    • The proposed legislation will likely require local fire departments/fire marshals to inspect ammonium nitrate storage facilities and make sure they comply with guidelines
    • Ag industry and manufacturers involved would like to see these storage guidelines policed by TCEQ
    • There is grant money available that could be used for funding LEPC’s, which means no additional fees will be placed on the fertilizer industry in order to fund LEPC’s
       

Tim Herrman, State Chemist, Director of Texas Feed &Fertilizer Control Service

  • Rep. Kleinschmidt:
    • Would like to narrow the definition of “operator” so that it won’t encompass any non-owner employees of fertilizers distributors/manufacturers for penalty purposes; Herrman- this shouldn’t be an issue, we look to ownership for infraction repercussions; for the most part penalties are in the form of corrective measures and disallowing companies to engage in commerce, not individual penalties
  • Rep. Flynn:
    • Will volunteer firemen be represented on the Advisory Committee? Yes, volunteer fire chiefs will be on the Advisory Committee
  • Rep Simmons:
    • Are there any new penalties or fees associated with this bill? Chairman Pickett- No… however in the tier 2 reporting we are adding a penalty to Ch. 507 that was already contained in Ch. 505/506
    • After these recommended standards are passed from the Advisory Committee to the Insurance Commission, will the House get another chance to influence/change them before they’re implemented? Chairman Pickett- no…but after the Insurance Commission has promulgated the rules, the House can change them the following session
    • Do you feel the Advisory Committee will do a sufficient job of tailoring the rules to the size of communities, etc…or do we need to step in and direct that? Chairman Pickett- the Advisory Committee will handle the details in the drafting; I prefer for the House to stay away from micromanaging the standard drafting for fear of detracting from the legislative intent
    • Does the draft legislation attempt to circumvent the AG’s opinion on community right to information in the current statute? Chairman Pickett- No

 
Kelly Cook, TCEQ

  • Why should the rules for ammonium nitrate storage not apply to manufacturers? Under current regulations the inspections primarily deal with storage facilities based on the Tier 2 forms we receive
  • Do manufacturers already have sufficient industry oversight/regulations to ensure safety?

 
Hoyt Henry, Department of State Health Services, Division for Regulatory Services

  • Rep. Simmons:
    • Do the current ammonium nitrate storage regulations apply to manufacturers? The regulations do cover manufacturers but there’s no recourse for a facility storing ammonium nitrate manufactured at a different site; if manufacturers store ammonium nitrate in any way, then they’re held to the same standards as storage facilities; currently Texas doesn’t have any ammonium nitrate manufacturers, it only has blending/storage plants

 
Donnie Dippel, Texas Ag Industry Association

  • Chairman Pickett:
    • Would you share your thoughts/opinions on where we are so far in the drafting process?
  • TAIA appreciates the removal of civil penalties and National Fire Code standards from the proposed legislation
  • TAIA would like to see more ag groups on the advisory committee; the fire marshals have more influence on the advisory committee than the ag groups; the committee lacks functional knowledge of fertilizer plants
  • The Office of State Chemists has very clear, understandable rules and regulations on ammonium nitrate storage; recommends using the State Chemists’ regulations as a guideline in drafting the proposed regulations
  • Chairman Pickett:
    • The Advisory Committee isn’t intended to pit Ag vs. Fire Departments, but I would like to hear your recommendations on the makeup of the Advisory Committee
  • The Agriculture Retailers Assoc. is developing 3rd party audits that would inspect facilities and give suggested safety improvements and could prove to be extremely beneficial
  • State chemists, insurance co., and industry standards will be sufficient, we do not need legislation passed to create additional oversight of ammonium nitrate storage
  • Chairman Pickett:
    • Disagrees with the conjecture that legislative oversight on ammonium nitrate storage standards are unnecessary; you should view this as a unique opportunity to influence legislation during the drafting phase; I see this as retaining what the Chemical Council has already done and implementing additional safety standards
  • Rep. Kleinschmidt:
    • Do the NAICS references complicate the bill or are they helpful? The NAICS references simplify the bill; it seems complicated but ultimately makes the reference system much simpler
  • Rep. Simmons:
    • There are no ammonium nitrate manufacturers in TX correct? Yes
    • But there are blending facilities… should they be treated the same way as manufacturers? Yes

 
Hector Rivera, President, Texas Chemical Council

  • The TCC has created emergency planning standards and require that facilities have emergency response plans; many facilities have their own fire departments in place and also work with local fire departments and emergency responders
  • All facilities are required to participate in a LEPC which collaborate with local elected officials, fire, police, EMS, hospital officials and have an annually reviewed plan in place to address any type of a release
  • The emergency plans not only layout how to respond to releases but also layout a plan to communicate with nearby communities in the event of emergencies; several communities have reverse 911 systems to alert residents of emergency releases
  • Rep. Simmons:
    • Would any of the chemical companies you represent be opposed to additional legislation directing ammonium nitrate storage? Yes, they feel there is sufficient oversight with the current system of regulations

 
Chris Connealy, Texas Department of Insurance

  • The proposed draft is very workable

 
Brad Johnson, Northeast Texas Farmers’ Co-op

  • Local LEPC’s need more funding
  • Chairman Pickett:
    • What can we do to make LEPC’s more effective from a funding standpoint? (No Answer)
    • We can attempt to make the website in connection with the CRKA less intrusive and only divulge information available to the public that allows them to know ammonium nitrate storage facilities are located within the county rather than revealing their exact location
  • The Community Right to Know Act- we feel there is a delicate balance between security and safety and divulging to much information regarding chemicals contained at co-ops can create security issues; Chairman Pickett agrees

 

Texas Driver Responsibility Program

Chairman Pickett

  • I have no intention of entirely doing away with the program
  • We need to determine the best way to collect the outstanding surcharges
  • All legislation in the past has been contentious and died
  • Have made small administrative changes, like making the return address from DPS in Austin and not NYC
  • People are throwing away the second bill because it looks identical to the first and they don’t think they need to pay it
  • Looking into changing the surcharge amounts
    • Lowering the fines with payment plans over one year – not three
  • Only have a 32% compliance rate

Flynn

  • Discussed a constituent that was having a difficult time getting insurance because of the difficulty in identifying all infractions that they have to pay

 
Jennifer Fox, LBB

  • Presented an analysis of the reduction of surcharge amounts based on conviction data from 2012-13
  • Comptroller would be responsible for certifying any financial changes based on legislation
  • Discussed various scenarios for increased compliance
  • Pickett – since the inception of the DRP, only 40.7% collected from what was assessed
    • Isn’t a rational approach to have a bill that eliminates the program, but we really need to increase the compliance rate
    • Once you get into the system it is almost impossible to get back out
    • Concerned that the program is encouraging people to drive without insurance or a license because they cannot afford the surcharges to get them reinstated

 
Rebecca Hick, DPS and Cheryl Garon, DPS

  • Pickett asked for an update on all of the administrative changes that have been made
    • Return addresses have been changed to Austin from NYC
    • Working on the letter format because it is hard to read
    • Have not moved to one account yet, but hope to get there in the next year
  • Pickett asked for their recommendations to increase the compliance rate
    • Easier ability to update address
    • New installment plans
    • Allowing for single surcharge assessment
  • Pickett – Does a person get a letter, for example, if they miss their second installment?
    • Yes, but it is generally sent to the address on their driver’s license or one that they could get through the USPS
  • There isn’t a single source to determine all surcharges an individual owes if they incur them in different counties, etc.
    • Flynn – can DPS establish a clearinghouse?
      • Right now DPS encourages courts to contract with DPS
      • Flynn asked if maybe it should be a statutory requirement?
  • Sheets – have we seen any impact on the uninsured rate in Texas based on the DRP?
    • 20% uninsured prior to 2008, now 15%
  • How much did it cost Texas to implement the DRP?
    • 1% from DPS, roughly 1.5M a year plus a little more – unsure of the total
    • Sheets – this gets back to the problem of dedicated funds
    • Sheets – how many FTEs dedicated to the program?
      • 11
  • Sheets asked for data from DPS showing if there is a correlation between driving without a license and driving without insurance in the state

 
Judge Hughes, Harris County

  • Pickett – What recommendations do you have to increase compliance?
    • Have explored alternate funding sources to make up for 160M
    • Thinks the procedural changes for DPS in the draft legislation could help
    • Need to increase the time period for getting a driver’s license to present to the court to 90 days
  • Pickett – personally does not believe that insurance is too expensive and it shouldn’t be used as an excuse not to get it
  • Hughes believes that overall, the surcharges are way too high
    • More reasonable amounts are more likely to be paid on time
  • Pickett asked for the compliance rate on the DWI program
    • 42%
  • Going to a point system might make sense

 
Maureen Milligan, THOT

  • Trauma funding is critical to hospital systems
  • THOT operates 10 out of the 16 level one trauma centers in the state
  • 200M in UD trauma expenditures
  • 56M a year is provided through the DRP
  • Critical program generating critical funds
  • In the draft, they support:
    • Authority for judges to dismiss cases and find alternative payment penalties
    • Reductions in surcharges
    • Inclusion of considering the different populations and how they are impacted through this program
  • Sheets – if we did away with the DRP, you wouldn’t be opposed if we maintain the trauma funding?
    • Correct

 
Judge Stout

  • Would like to hear the vendor, MSB, testify
  • This program is punishing the poor
  • Hard to get compliance from people when you take their license away so they cannot get to work to make the money to be able to comply
  • The program needs to go away
  • Stopping the DRP would prevent multiple jailings of people that do not need to be incarcerated
    • There is too little knowledge of the surcharge program – need public service announcements
  • Would like the courts to have more flexibility
  • The DRP is essentially a tax just to raise money
  • People are going to jail and getting fines that they don’t deserve

 
Scott Hensen, Texas Criminal Justice Coalition

  • Unfortunately the draft legislation is like lipstick on a pig
  • Surcharges are too high
  • Supports the consolidation of payments over 3 years to 1
  • Wants a requirement for an amnesty program to clear the backlog
  • Pickett – still looking for recommendations on what the surcharge amount should be
    • Needs to be lowered so folks have the ability to pay
  • DWLI and No Insurance infractions should go under the point system
  • DWI surcharges are not lowered in the draft legislation, just consolidated into one year
    • Doesn’t believe that it will increase collection
    • Should put these fines under a criminal penalty, giving judges more flexibility
  • This draft doesn’t go far enough
  • Need to develop good public policy to have more licensed and insured folks on the road

 
Diana Walsh, Texas EMS and Trauma Acute Care Foundation

  • In 2003 they were seeing trauma diversion due to lack of access and funding
  • Worked with Diane Delisi to establish a funding stream for trauma
  • Intent was for bad drivers who cause wrecks to fund the trauma program
    • No one foresaw all of these complications that have occurred
  • The program is working from the trauma perspective
  • Texas is 1% lower than the national case fatality rate
  • 643M has been given to trauma facilities since the program’s incentive
  • Recognizes that the program needs improvements

 
Carrie Kroll, THA

  • Program is focused on habitually bad drivers
  • Want to preserve the trauma funding stream
  • Will be anxious to see what the legislation looks like going forward
  • Pickett – hoping that the committee will want to make recommendations to the full legislature to either make huge changes to or scrap the program entirely

 
Bill Lewis, MADD

  • Feels the committee is on the right track
  • Has supported making DWI a deferred adjudication
  • Wants the program to be more publicized so that it might serve as a deterrent
  • Gives permission for the committee to make changes to the DWI surcharges
    • Wants to improve collections

 
Barbara Chapman, self

  • Personal story

 
Sonia McMasters, self

  • Personal story