Colorado Legislative Council Staff



Drafting Number:

Prime Sponsor(s):

LLS 99-0298

Sen. Thiebaut


Bill Status:

Fiscal Analyst:

February 6, 1999

Senate SVMA

Steve Tammeus (866-2756)



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund



State Expenditures

General Fund

Cash Fund





FTE Position Change

1.1 FTE

0.5 FTE

Other State Impact: None

Effective Date: July 1, 1999

Appropriation Summary for FY 1999-2000:

Department of Public Health and Environment

    General Fund - $141,750 and 2.0 FTE

    Hazardous Substances Response Fund - ($72,723 and 1.2 FTE)

Department of Law

    Cash Funds Exempt - $22,100 and 0.3 FTE

Local Government Impact: None

Summary of Legislation

            This bill creates the "Pollution Prevention and Community Right-to-Know Act" and requires the Department of Public Health and Environment to create a comprehensive program to provide incentives to small business to encourage participation in environmental compliance assistance programs, to conduct environmental audits, and to correct violations of environmental law.

            The department may adopt rules and shall seek public input to establish the program. The program is to include existing state and federal incentives. The bill requires the department to develop guidelines for an integrated database, made available to the public via electronic media, to report a regulated entity's compliance data.

            The following paragraphs provide a summary of the remaining substantive provisions of the bill.

            Court orders for environmental compliance audits. A court shall order an environmental compliance audit to be conducted at the expense of a regulated entity found guilty of an environmental offense that is a felony, and in certain cases, a misdemeanor or civil offense. The court is to appoint an independent expert to conduct the audit. The bill specifies the content of the audit.

            Qualifying environmental audit. A regulated entity, to qualify for assistance benefits, may:


               conduct an internal audit externally verified by a person identified by the department;

               conduct an audit in response to specific concerns of residents in an affected community; or

               conduct an audit to identify opportunities to reduce the use of toxic substances, produce zero discharges, or promote workplace safety.

            The bill requires the regulated entity to involve the affected community in the audit if the entity's facility is located within an environmental justice area of concern.

            Conditions for the reduction of civil penalties. The bill specifies certain conditions a regulated entity must satisfy to reduce a civil penalty, including: disclosing the violation, providing notice, correcting the violation, preventing recurrence, demonstrating good faith, implementing a self-evaluation system, cooperating with the department, and adopting precautionary principles.

            Reduction of civil penalties. The bill requires the department to consider voluntary disclosure in determining whether to prosecute an entity for any violation. The bill specifies certain factors the department must consider in the determination. The department shall not recommend criminal charges if all the conditions for the reduction of civil penalties have been met and the entity complies to certain other conditions. The bill allows the department to bring criminal charges against individual employees if evidence demonstrates willful violations.

            Notice and disclosure. Prior to implementing a qualifying audit, the bill requires the regulated entity to provide notice to the department and the affected community, publish and file a certification report with the department, provide the summary report and audit report to all public libraries in the entity's region, and notify the public of the availability of the reports.

            Trade secrets. The bill allows an entity to withhold trade secret information from the public, but requires the department to provide opportunity for a hearing to determine whether the information is a trade secret.

             Repeal. The bill repeals the statutory provisions of the "Voluntary Clean-up and Redevelopment Act" administered by the Department of Public Health and Environment. The bill also repeals statutory provisions regarding "documents arising from environmental self-evaluation".

State Expenditures

            Pollution Prevention and Community Right-to-Know Act. The Department of Public Health and Environment's annual General Fund expenditures to implement and administer the provisions of this act are based upon the following assumptions:



that the department will require legal services from the Department of Law to assist with rule making, and to provide general counsel;

               that the requirement for legal services will be diminished starting the third year;

               that the department will develop the reporting guidelines and data base during the first year;

               that data and information transmissions will be conducted over the Internet;

               that the basis for developing the Environmental Leadership program will serve as a guideline for the development of this program;

               that the department will establish a task force to encourage public input into the structure of the program, and an outreach program to inform small business of the existence of the program;

               that the department will provide staff assistance to the task force and outreach program; and

               that the department will require on-going personal services to administer the program.

            Table 1 provides a summary of the department's estimated expenditures for FY 1999-2000 and FY 2000-01.

Table 1 - Department of Public Health and Environment

Pollution Prevention and Community Right-to-Know Act


FY 1999-2000

FY 2000/2001

Personal Services

Env Prot Spec II

IT Professional III




1.0 FTE — $41,460

1.0 FTE — 42,492



2.0 FTE — $94,740

1.0 FTE — $41,460

0.5 FTE — 21,246



1.5 FTE — $70,764

Operating Expenses



Legal Expenses @ $49.11/hour

450 hours — $22,100

330 hours — $16,206

Non-recurring Expenses



Total Expenses

2.0 FTE — $141,750

1.5 FTE — $101,245

            Voluntary Clean-up and Redevelopment Act. The bill repeals the provisions of this act. These provisions, per current law, are scheduled to be repealed effective July 1, 1999. The department was appropriated $72,723 and 1.2 FTE Hazardous Substances Response Fund to administer this program.

Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:


               health and life insurance costs of $4,411;

               short-term disability costs of $176;

               inflationary cost factors;

               leased space; and

               indirect costs.

State Appropriations


            This fiscal note would imply the Department of Public Health and Environment will require a General Fund appropriation of $141,750 and 2.0 FTE for FY 1999-2000. Of this amount, the Department of Law will require a cash fund exempt spending authority of $22,100 and 0.3 FTE.

            Additionally the Department of Public Health and Environment will require a Hazardous Substances Response Fund spending authority reduction of $72,723 and 1.2 FTE for FY 1999-2000.

Departments Contacted


            Public Health and Environment         Law                Local Affairs              Judicial