Signed by Governor Jan Brewer

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that authorizes confidential environmental audits by businesses.

Highlights:

• Prohibits the use of any part of an audit report as evidence in an administrative proceeding or a civil action (Sec. 1).

• Prohibits a state agency employee from requesting, reviewing or using an audit report during an inspection of a facility or its operations and activities (Sec. 1).

• Prohibits an individual from testifying or producing a document related to an audit if that testimony or document discloses any “privileged” part of the audit (Sec. 1).

• Authorizes an individual who conducted or participated in the audit and has observed physical events of a violation to testify regarding those events as long as the individual does not testify about or produce documents related to any “privileged” part of the audit (Sec. 1).

• -Authorizes a court or administrative hearing official to require the disclosure of a portion of an audit report in a hearing if any of the following circumstances apply (Sec. 1):
• The privilege is asserted for a fraudulent purpose;
• The portion of the audit report is not subject to privilege; or
• The portion of the audit report shows evidence of non-compliance with an environmental law and no efforts to comply.

• Exempts the following information from privilege (Sec. 1):
• Information required by a regulatory agency to be collected, developed, maintained or reported under environmental law;
• Information obtained by observation or monitoring by a regulatory agency; and
• Information obtained from a source not involved in the preparation of the environmental audit report.

• Specifies that any employee or official of the State of Arizona who discloses information from a “privileged” audit has committed a Class 1 misdemeanor (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes confidential environmental audits by businesses.

Highlights:

• Prohibits the use of any part of an audit report as evidence in an administrative proceeding or a civil action (Sec. 1).

• Prohibits a state agency employee from requesting, reviewing or using an audit report during an inspection of a facility or its operations and activities (Sec. 1).

• Prohibits an individual from testifying or producing a document related to an audit if that testimony or document discloses any “privileged” part of the audit (Sec. 1).

• Authorizes an individual who conducted or participated in the audit and has observed physical events of a violation to testify regarding those events as long as the individual does not testify about or produce documents related to any “privileged” part of the audit (Sec. 1).

• Authorizes a court or administrative hearing official to require the disclosure of a portion of an audit report in a hearing if any of the following circumstances apply (Sec. 1):
• The privilege is asserted for a fraudulent purpose;
• The portion of the audit report is not subject to privilege; or
• The portion of the audit report shows evidence of non-compliance with an environmental law and no efforts to comply.

• Exempts the following information from privilege (Sec. 1):
• Information required by a regulatory agency to be collected, developed, maintained or reported under environmental law;
• Information obtained by observation or monitoring by a regulatory agency; and
• Information obtained from a source not involved in the preparation of the environmental audit report.

• Specifies that any employee or official of the State of Arizona who discloses information from a “privileged” audit has committed a Class 1 misdemeanor (Sec. 1).

Full Bill Text