BILL ANALYSIS



H.B. 1644
By: Hirschi
3-28-95
Committee Report (Amended)


BACKGROUND

Hospitals contract with medical waste disposal companies to collect
their hazardous medical waste and properly incinerate it. 
Hazardous medical waste may include materials ranging from
contaminated needles and syringes to stool samples and amputated
limbs.  There have been a number of recent cases in which a few
unscrupulous disposal companies have improperly dumped medical
waste in Texas communities, creating a significant public health
hazard.

The Texas Administrative Code has specific rules governing the
handling and disposal of medical waste, separate from other forms
of hazardous waste.  While there are criminal penalties for
illegally dumping hazardous waste in Texas, there are no similar
statutes making it a criminal offense to illegally dump medical
waste.  

PURPOSE

HB 1644 creates criminal offenses and establishes penalties for
violation of rules governing medical waste.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Adds Subchapter S to Chapter 361, Health and Safety
Code, as follows:

Section 361.560.  Definitions:
     "Appropriate regulatory agency"  means the Texas Natural
     Resource Conservation Commission, the Department of Health, or
     another authorized agency.
     "Large quantity generator" means a person who generates more
     than 50 pounds of medical waste a month.
     "Medical waste" means waste generated by a health care
     facility and associated with health care activities.
     "Small quantity generator" means a person who generates 50
     pounds or less per month

Section 361.561.  Radioactive Medical Waste.  Disposal of
     radioactive medical waste is governed by Chapter 401, Health
     and Safety Code.

Section 361.562.  Generation, Storage, Treatment and Disposal;
     Large Quantity Generators.  
     (a) Makes it an offense for a large quantity generator to
           intentionally or knowingly handle or dispose of medical
           waste without a permit or in violation of a permit,
           rule, or standard; or file false reports; or destroy
           required documents.
     (b) The offense may be punished by a fine of $1,000-$10,000
           per violation, up to ten years in prison, or both.
     (c) For subsequent offenses, the range of punishment is twice
that which is set out         in Subsection (b).
     (d) Non-natural persons are punishable by a fine of $5,000-$50,000.
     (e) A subsequent offense by a non-natural person may be
           punished by a fine of $10,000-$100,000.
     
Section 361.5625.  Generation, Storage, Treatment and Disposal;
     Small Quantity Generators.
     (a) Makes it an offense for a small quantity generator to
           intentionally or knowingly handle or dispose of medical
           waste without a permit or in violation of a permit,
           rule, or standard; file false reports; or destroy
           required documents.
     (b) Offenses under this section are punishable by a fine of
           $500-$10,000 per violation, up to one year in prison,
           or both.
     (c) For subsequent offenses, the range of punishment is twice
     that which is set out in Subsection (b)
     (d) Non-natural persons who commit an offense under this
     section are punishable by a fine of $2,000-$20,000.
     (e) A subsequent offense by a non-natural person may be
           punished by a fine of $4,000-$40,000.
     
Section 361.563.  Transportation of Medical Waste.
     (a)  Makes it an offense for a person to intentionally or
           knowingly transport medical waste to a place that does
           not have all required permits, transport medical waste
           without a manifest, or transport medical waste in a
           vehicle which does not meet cleaning, safety, and other
           regulations.
     (b)  Offense may be punished by a fine of $500-$10,000 per
           violation, up to one year in prison, or both.
     (c)  The range of punishment is doubled for subsequent
           offenses.
     (d)  A non-natural person may be punished by a fine of $5,000-$50,000.
     (e)  A subsequent offense committed by a non-natural person
           may be punished by a fine of $10,000-$100,000.
     
Section 361.564.  False or Misleading Statements.
     (a)  Makes it an offense for a person to knowingly make a
           false material statement, or knowingly omit material
           information, in required documents regarding medical
           waste handling.
     (b)  The offense may be punished by a fine of $500-$10,000 per
           violation, up to one year in prison, or both.
     (c)  For subsequent offenses, the range of punishment is twice
           that which is set out in Subsection (b).
     (d)  A non-natural person who commits an offense may be
     punished by a fine of $2,000-      $20,000 under this
                                        section.
     (e)  A subsequent offense committed by a non-natural person
           may be punished by a fine of $4,000-$40,000.
     
Section 361.565.  Endangerment Offenses.
     (a)  Makes it an offense for a person to intentionally or
           knowingly transport, process, store, export, dispose,
           or cause to be transported, processed, stored, exported,
           or disposed or disposing of medical waste in violation
           of subchapter, and thereby knowingly place another
           person in imminent danger of death or serious bodily
           injury.
     (b)  A person who commits an offense under Subsection (a) may
           be punished by a fine of $2,500-$250,000 per violation,
           up to 15 years in prison, or both.
     (c)  An offense under Subsection (a) that is committed by a
           non-natural person may be punished by a fine of $5,000-$1,000,000.
     (d)  If offense under Subsection (a) results in death or
           serious bodily injury, the individual may be punished
           by a fine of $5,000-$500,000, 2-30 years in prison, or
           both.
     (e)  A non-natural person who commits an offense under
           Subsection (a) results in death or serious bodily
           injury, the person may be punished by a fine of $10,000-$1,500,000.
     (f)  Makes it an offense for a person to intentionally or
           knowingly handle or dispose of medical waste in
           violation of this chapter and thereby placing another
           person in imminent danger of death or injury, unless the
           person acted in strict compliance with all required
           permits or orders or with a valid and currently
           effective order or rule.
     (g)  A person who commits an offense under Subsection (f) may
           be punished by a fine of $1,500-$150,000, up to 5 years
           in prison, or both.
     (h)  A non-natural person who commits an offense under
           Subsection (f) may be punished by a fine of $3,000-$300,000.
     (i)  A person who commits an offense under Subsection (f) that
           results in death or serious bodily injury may be
           punished by a fine of $3,000-$300,000, 2-10 years in
           prison, or both.
     (j)   A non-natural person who commits an offense under
           Subsection (f) that results in death or serious bodily
           injury may be punished by a fine of $6,000-$600,000.
     (k)  Makes it an offense for a person to intentionally or
           knowingly release medical waste into the environment and
           thereby place another person in imminent danger of death
           or injury, unless the person s conduct is done in strict 
           compliance with all rules
     (l)  A person who commits an offense under Subsection (k) may
           be punished by a fine of $1,500-$150,000, up to 5 years
           in prison, or both.
     (m)  A non-natural person who commits an offense under
           Subsection (k) may be punished by a fine of $3,000-$300,000.
     (n)  A person who commits an offense under Subsection (k) that
           results in death or serious bodily injury may be
           punished by a fine of $3,000-$300,000, 2-10 years in
           prison, or both.
     (o)  A non-natural person who commits an offense under
           Subsection (k) by anyone other than and individual
           offender results in death or serious bodily injury,
           offense may be punished by a fine of $6,000-$600,000.
     (p)  Makes it an offense for a person to recklessly release
           medical waste into the environment, and thereby place
           another person in imminent danger of death or serious
           bodily injury, unless the person s conduct is in strict
           compliance with all rules.
     (q)  A person who commits an offense under Subsection (p) may
           be punished by a fine of $1,000-$100,000, up to one year
           in prison, or both.
     (r)  A non-natural person who commits an offense under
           Subsection (p) may be punished by a fine of $2,500-$250,000.
     (s)  A person who commits an offense under Subsection (p) that
           results in death or serious bodily injury may be
           punished by a fine of $2,000-$200,000, 1-2 years in
           prison, or both.
     (t)  A non-natural person who commits an offense under
           Subsection (p) that results in death or serious bodily
           injury may be punished by a fine of $5,000-$500,000.

Section 361.566.  Affirmative Defense; Knowledge Requirement.
     (a)  Makes it an affirmative defense if endangerment was
           freely and knowingly consented to by the person
           endangered, and the dangers were foreseeable
           occupational, professional, or medical treatment
           hazards.
     (b)  A defendant is only responsible for actual knowledge. 
           Attempts to avoid information may be used to prove a
           defendant s actual knowledge.
     
Section 361.567.  Venue.  Venue is in the county where violation
     occurred or in Travis County.

SECTION 2.  Severability Clause.

SECTION 3.  Criminal offense clause.

SECTION 4.  Effective date: September 1, 1995.

SECTION 5.  Emergency clause.


EXPLANATION OF AMENDMENTS

Committee Amendment number one makes the following changes:
     (1) Deletes the original definition of "medical waste", and
     inserts a new, more specific definition that "medical waste"
     includes animal waste, bulk blood and blood products,
     microbiological waste, pathological waste, sharps, and special
     waste from health care related facilities as they are defined
     in the Texas Department of Health Rules.
     (2)&(3) Page 6, lines 5 and 6 are changed from, "knowingly
     makes a false material statement, or causes or permits to be
     made a false material statement..." to "knowingly makes a
     false material statement, or knowingly causes or knowingly
     permits to be made a false material statement..."
     (4) Changes the "any label" on line 12 of page 6 to "any
regulated medical waste label".
     (5) "Subchapter" on page 7, line 13 is changed to "chapter".

There were no other amendments.

SUMMARY OF COMMITTEE ACTION

HB 1644 was considered by the House Committee on Environmental
Regulation in a public hearing on March 14, 1995.  Rep. Hirschi
testified in favor of the bill.  The committee considered amendment
#1 to the bill.  The following persons testified neutrally on the
bill:
     Catherine Douglas, Assistant Attorney General, Office of the
Attorney General,        Environmental Crimes Division,
                         representing herself.
     Dr. Patricia Y. Riley, representing the Texas Natural Resource
     Conservation Commission.
     Lee Matthews, representing the Texas Low-Level Radioactive
Waste Disposal Authority.
Committee amendment number one was adopted without objection.  HB
1644, as amended, was referred to a subcommittee to be named later
by the chair.

After being recalled from subcommittee, HB 1644, as amended, was
considered by the House Committee on Environmental Regulation in a
public hearing on March 28, 1995.  The bill was reported favorably,
as amended, with the recommendation that it do pass and be printed,
by a record vote of seven (7) ayes, no (0) nays, no (0) pnv, and
two (2) absent.