Assembly Bill No. 536–Committee on Natural Resources, Agriculture, and Mining

(On Behalf of Commission on Workplace Safety)

March 15, 1999

____________

Referred to Committee on Commerce and Labor

 

SUMMARY—Requires certain permits to be obtained by facility or place of employment where highly hazardous substances or explosives are located. (BDR 40-781)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to public safety; requiring permits to construct or operate new processes which include any activity involving highly hazardous substances at any regulated facility where those substances are located; requiring a permit to construct, alter the construction of or modify certain processes at a place of employment where certain explosives are located; providing that certain monetary penalties must be deposited in the fund for precaution against chemical accidents; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 459 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2, 3 and 4 of this act.

1-3 Sec. 2. "Process" means:

1-4 1. Any activity that involves a substance listed in NRS 459.3816 or in

1-5 a regulation of the division adopted pursuant to NRS 459.3833, and

1-6 includes, without limitation, the use, storage, manufacture, handling or

1-7 on-site movement of the substance, or any combination thereof.

1-8 2. A group of vessels that are used in connection with such an

1-9 activity, including vessels that are:

2-1 (a) Interconnected; or

2-2 (b) Separate, but located in such a manner which makes possible the

2-3 release of a substance.

2-4 Sec. 3. "Vessel" means a reactor, tank, drum, barrel, cylinder, vat,

2-5 kettle, boiler, pipe, hose or other container.

2-6 Sec. 4. 1. No owner or operator of a regulated facility may

2-7 commence construction or operation of any new process subject to

2-8 regulation pursuant to NRS 459.380 to 459.3874, inclusive, and sections

2-9 2, 3 and 4 of this act, unless he first obtains all appropriate permits from

2-10 the division to construct the new process or commence operation of the

2-11 new process, or both. Before issuing any such permits, the division shall

2-12 consult with the division of industrial relations of the department of

2-13 business and industry.

2-14 2. An application for such a permit must be submitted on a form

2-15 prescribed by the division.

2-16 3. The division may require the applicant to comply with

2-17 requirements that it establishes by regulation before issuing any permits

2-18 for construction and operation of the process.

2-19 4. The division may charge and collect a fee for the issuance of such

2-20 a permit. All fees collected pursuant to this section and any interest

2-21 earned thereon must be deposited with the state treasurer for credit to the

2-22 fund for precaution against chemical accidents created pursuant to NRS

2-23 459.3824.

2-24 Sec. 5. NRS 459.3802 is hereby amended to read as follows:

2-25 459.3802 As used in NRS 459.380 to 459.3874, inclusive, and

2-26 sections 2, 3 and 4 of this act, unless the context otherwise requires, the

2-27 words and terms defined in NRS 459.3804 to 459.3812, inclusive, and

2-28 sections 2 and 3 of this act have the meanings ascribed to them in those

2-29 sections.

2-30 Sec. 5.5. NRS 459.3824 is hereby amended to read as follows:

2-31 459.3824 1. The owner of a regulated facility shall pay to the

2-32 division an annual fee based on the fiscal year. The annual fee for each

2-33 facility is the sum of a base fee set by the state environmental commission

2-34 and any additional fee imposed by the commission pursuant to subsection

2-35 2. The annual fee must be prorated and may not be refunded.

2-36 2. The state environmental commission may impose an additional fee

2-37 upon the owner of a regulated facility in an amount determined by the

2-38 commission to be necessary to enable the division to carry out its duties

2-39 pursuant to NRS 459.380 to 459.3874, inclusive [.] , and sections 2, 3 and

2-40 4 of this act. The additional fee must be based on a graduated schedule

2-41 adopted by the commission which takes into consideration the quantity of

2-42 hazardous substances located at each facility.

3-1 3. After the payment of the initial annual fee, the division shall send the

3-2 owner of a regulated facility a bill in July for the annual fee for the fiscal

3-3 year then beginning which is based on the applicable reports for the

3-4 preceding year.

3-5 4. The owner of a regulated facility shall submit, with any payment

3-6 required by this section, the number assigned by the department of taxation,

3-7 for the imposition and collection of taxes pursuant to chapter 364A of NRS,

3-8 to the business for which the payment is made.

3-9 5. All fees collected pursuant to this section and penalties collected

3-10 pursuant to NRS 459.3833, 459.3834 and 459.3874, and any interest

3-11 earned thereon , must be deposited with the state treasurer for credit to the

3-12 fund for precaution against chemical accidents, which is hereby created as a

3-13 special revenue fund.

3-14 Sec. 6. NRS 459.3872 is hereby amended to read as follows:

3-15 459.3872 1. If any person violates any of the provisions of NRS

3-16 459.380 to 459.386, inclusive, or 459.387, or section 4 of this act, or any

3-17 regulation or order adopted or issued pursuant thereto, the division may

3-18 institute a civil action in a court of competent jurisdiction for injunctive or

3-19 any other appropriate relief to prohibit and prevent the violation and the

3-20 court may proceed in the action in a summary manner.

3-21 2. Except as otherwise provided in NRS 445C.010 to 445C.120,

3-22 inclusive, a person who violates a provision of NRS 459.380 to 459.386,

3-23 inclusive, or 459.387, or section 4 of this act, or any regulation or order

3-24 adopted pursuant thereto is liable to a civil administrative penalty as set

3-25 forth in NRS 459.3874. If the violation is of a continuing nature, each day

3-26 during which it continues constitutes an additional, separate and distinct

3-27 offense. No civil administrative penalty may be levied until after

3-28 notification to the violator by certified mail or personal service. The notice

3-29 must include a reference to the section of the statute, regulation, order or

3-30 condition of a permit violated, a concise statement of the facts alleged to

3-31 constitute the violation, a statement of the amount of the civil penalties to

3-32 be imposed, and a statement of the violator’s right to a hearing. The

3-33 violator has 20 days after receipt of the notice within which to deliver to the

3-34 division a written request for a hearing. After the hearing if requested, and

3-35 upon a finding that a violation has occurred, the administrator of the

3-36 division may issue a final order after assessing the amount of the fine

3-37 specified in the notice. If no hearing is requested, the notice becomes a

3-38 final order upon the expiration of the 20-day period. Payment of the penalty

3-39 is due when a final order is issued or when the notice becomes a final order.

3-40 The authority to levy a civil administrative penalty is in addition to all other

4-1 provisions for enforcement of NRS 459.380 to 459.387, inclusive, and the

4-2 payment of a civil administrative penalty does not affect the availability of

4-3 any other provision for enforcement in connection with the violation for

4-4 which the penalty is levied.

4-5 Sec. 7. NRS 459.3874 is hereby amended to read as follows:

4-6 459.3874 1. The civil administrative penalties are:

4-7 Category of Offense Penalty in U.S. Dollars

4-8 A. Failure to register a new or existing

4-9 regulated facility: $25,000 plus $2,000 per day

4-10 from the due date

4-11 B. Failure to pay annual fee: 75 percent of the fee

4-12 C. Failure to submit a safety report: $10,000 plus $1,000 per day

4-13 from the due date

4-14 D. Failure to conduct an assessment of

4-15 risk through analysis of hazards

4-16 pursuant to the conditions set forth

4-17 in NRS 459.3844: $25,000

4-18 E. Failure to put into effect plan: $50,000

4-19 F. Failure to comply with plan to reduce

4-20 accidents and schedule of

4-21 compliance: up to $5,000

4-22 G. Failure to comply with approved plan

4-23 to reduce accidents, each

4-24 requirement: up to $10,000

4-25 H. Failure to provide information

4-26 requested by the division: $25,000

4-27 I. Failure to grant access to employees or

4-28 agents of division for inspections: $25,000

4-29 J. Failure to provide information or grant

4-30 access to employees or agents of

4-31 division during an emergency: $50,000

4-32 K. Falsification of information submitted

4-33 to division: up to $10,000 per incident

4-34 L. Failure to obtain a permit for the

4-35 construction of a new regulated

4-36 facility: $25,000

4-37 The civil administrative penalty prescribed in category L may be assessed

4-38 against a contractor who is constructing the regulated facility only if the

4-39 contractor is contractually responsible for obtaining all appropriate

5-1 permits for the construction of the regulated facility and the contractor

5-2 knows or has reason to know the planned use of the regulated facility.

5-3 2. The division may compromise and settle any claim for any penalty

5-4 [under] as set forth in this section in such amount in the discretion of the

5-5 division as may appear appropriate and equitable under all of the

5-6 circumstances, including the posting of a performance bond by the violator.

5-7 If a violator is subject to the imposition of more than one civil

5-8 administrative penalty for the same violation, the division shall compromise

5-9 and settle the claim for the penalty [under] as set forth in this section in

5-10 such amount as to avoid the duplication of penalties.

5-11 3. No penalty may be imposed pursuant to this section for the failure to

5-12 perform a required act within the time required if the delay was caused by a

5-13 natural disaster or other circumstances which are beyond the control of the

5-14 violator.

5-15 4. Any person who violates any of the provisions of NRS 459.380 to

5-16 459.386, inclusive, or 459.387, or section 4 of this act, or any regulation or

5-17 order adopted or issued pursuant thereto, or an administrative order issued

5-18 pursuant to subsection 2 of NRS 459.3872 or a court order issued pursuant

5-19 to subsection 1 of NRS 459.3872, or who fails to pay a civil administrative

5-20 penalty in full is subject, upon order of the court, to a civil penalty not to

5-21 exceed $10,000 per day of the violation, and each day’s continuance of the

5-22 violation constitutes a separate and distinct violation. Any penalty imposed

5-23 pursuant to this subsection may be recovered with costs in a summary

5-24 proceeding by the attorney general.

5-25 Sec. 8. Chapter 618 of NRS is hereby amended by adding thereto the

5-26 provisions set forth as sections 9 and 10 of this act.

5-27 Sec. 9. 1. No owner or operator of a place of employment may

5-28 commence the construction of, substantially alter the construction of, or

5-29 modify any major process used to protect the lives, safety and health of

5-30 employees at a place of employment where an explosive is manufactured,

5-31 or used, processed, handled, transported or stored in relation to its

5-32 manufacture, unless he first obtains a permit therefor from the division.

5-33 Before issuing any permit, the division shall consult with the division of

5-34 environmental protection of the state department of conservation and

5-35 natural resources.

5-36 2. An application for such a permit must be submitted on a form

5-37 prescribed by the division.

5-38 3. The division may require the applicant to comply with

5-39 requirements that it establishes by regulation before issuing such a

5-40 permit.

5-41 4. The division may charge and collect a fee for the issuance of such

5-42 a permit.

6-1 5. The division shall adopt such regulations as are necessary to carry

6-2 out the provisions of this section.

6-3 6. Notwithstanding any provision of this section to the contrary, the

6-4 provisions of this section do not apply to the mining industry.

6-5 7. Except as otherwise provided in subsection 8, as used in this

6-6 section, "explosive" means gunpowders, powders used for blasting, all

6-7 forms of high explosives, blasting materials, fuses other than electric

6-8 circuit breakers, detonators and other detonating agents, smokeless

6-9 powders, other explosive or incendiary devises and any chemical

6-10 compound, mechanical mixture or device that contains any oxidizing and

6-11 combustible units, or other ingredients, in such proportions, quantities or

6-12 packing that ignition by fire, friction, concussion, percussion, or

6-13 detonation of the compound, mixture or device or any part thereof may

6-14 cause an explosion.

6-15 8. For the purposes of this section, an explosive does not include:

6-16 (a) Ammunition for small arms, or any component thereof;

6-17 (b) Black powder commercially manufactured in quantities that do

6-18 not exceed 50 pounds, percussion caps, safety and pyrotechnic fuses,

6-19 quills, quick and slow matches, and friction primers that are intended to

6-20 be used solely for sporting, recreation or cultural purposes:

6-21 (1) In an antique firearm, as that term is defined in 18 U.S.C. §

6-22 921(a)(16), as that section existed on January 1, 1999; or

6-23 (2) In an antique device which is exempted from the definition of

6-24 "destructive device" pursuant to 18 U.S.C. § 921(a)(4), as that section

6-25 existed on January 1, 1999; or

6-26 (c) Any explosive that is manufactured under the regulation of a

6-27 military department of the United States, or that is distributed to, or

6-28 possessed or stored by, the military or naval service or any other agency

6-29 of the United States, or an arsenal, a navy yard, a depot or any other

6-30 establishment owned by or operated on behalf of the United States.

6-31 Sec. 10. If any person violates the provisions of section 9 of this act,

6-32 the division may:

6-33 1. Maintain an action in a court of competent jurisdiction for

6-34 injunctive or any other appropriate relief to prohibit and prevent the

6-35 violation. The court may proceed in the action in a summary manner.

6-36 2. Unless a greater penalty is provided in this chapter, require the

6-37 violator to pay an administrative fine of not more than $25,000.

6-38 Sec. 11. The amendatory provisions of this act do not apply to

6-39 offenses that were committed before January 1, 2000.

7-1 Sec. 12. This act becomes effective:

7-2 1. Upon passage and approval for the purposes of adopting regulations

7-3 and performing any other preparatory administrative tasks that are

7-4 necessary to carry out the provisions of this act; and

7-5 2. On January 1, 2000, for all other purposes.

~