Texas House Bill HB3477

Texas 2021 - 87th Regular

Caption

Relating to the termination of corporate privileges for certain business entities under enforcement action for a violation of environmental laws.

Impact

The bill amends the Business Organizations Code and creates new sections within the Water Code to establish the criteria under which the TCEQ may issue termination orders against entities deemed responsible for environmental disasters. The legal framework introduced by HB 3477 could have substantial implications for businesses operating in Texas, as it emphasizes stricter compliance with environmental regulations and allows for the revocation of corporate standing if serious violations occur. This heightened accountability is designed to foster better environmental practices among companies and reduce the incidence of harmful environmental events.

Summary

House Bill 3477 addresses the termination of corporate privileges for certain business entities that are under enforcement action for violations of environmental laws. The bill expands the authority of the Texas Commission on Environmental Quality (TCEQ) to determine when a filing entity, such as a corporation or limited partnership, is responsible for significant environmental violations that have caused harm to health or the environment. The provisions in the bill aim to protect public health and the environment by holding businesses accountable for their environmental practices.

Contention

However, the bill may generate contention, particularly among business owners and industry stakeholders who could view these regulations as overly punitive or damaging to business operations. There may be concerns about the scope of the TCEQ's authority, the definitions of 'environmental disaster,' and the criteria used to establish liability. Some industry advocates may argue that the bill could create a disincentive for business investment in Texas, especially if they perceive the enforcement actions as excessive or unfounded. This debate underscores the ongoing balance between regulatory protection of the environment and the support of business interests.