68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session Enrolled Senate Bill 559 Sponsored by Senator HANNON; Representative MARKHAM (at the request of Northwest Natural Gas) CHAPTER ................ AN ACT Relating to excavation regulation; creating new provisions; and repealing ORS 757.541, 757.546, 757.551, 757.556, 757.561, 757.566 and 757.571. Be It Enacted by the People of the State of Oregon: **************************** SECTION 1. { + As used in sections 1 to 7 of this Act: (1) 'Business day' means any 24-hour day other than a Saturday, Sunday or federal or state legal holiday. (2) 'Damage' means harm to or destruction of underground facilities including, but not limited to, the weakening of structural, lateral or subjacent support; the penetration, impairment or destruction of any coating, housing or other protective device; and the denting of, penetration into or severance of underground facilities. (3) 'Excavation' means any operation in which earth, rock or other material on or below the ground is moved or otherwise displaced by any means, except sidewalk, road and ditch maintenance less than 12 inches in depth that does not lower the road grade or original ditch flow line. 'Excavation' does not include the tilling of soil for agricultural purposes conducted on private property that is not within the boundaries of a recorded right of way or easement for underground facilities. (4) 'Excavator' means any person who engages in excavation. (5) 'Operator' means any person, public utility, municipal corporation, political subdivision of the state or other person with control over underground facilities. (6) 'Underground facilities' means items partially or entirely below the surface of the ground for use in connection with the storage or conveyance of electrical energy, water, sewage, petroleum products, gas, gaseous vapors or hazardous liquids, or the transmission of electronic, telephonic, telegraphic or cable communications. Such items include, but are not limited to, pipes, sewers, conduits, cables, valves, lines, wires, manholes, attachments and those parts of poles or anchors that are underground. (7) 'Unlocatable underground facilities' means underground facilities that cannot be marked with reasonable accuracy, including nonconductive sewers and nonmetallic underground facilities that have no trace wires. + } **************************** SECTION 2. { + (1)(a) The Oregon Utility Notification Center is created as an independent not-for-profit public corporation. The corporation shall be governed by a board of directors consisting of one member appointed to represent each of the following: (A) Cities with a population of 25,000 or more; (B) Cities with a population under 25,000; (C) Counties; (D) Natural gas utilities regulated by the Public Utility Commission under ORS chapter 757; (E) Electric utilities regulated by the Public Utility Commission under ORS chapter 757; (F) Water districts, special districts, sanitary districts or water and sanitary authorities; (G) Telecommunications utilities serving less than 15,000 access lines and regulated by the Public Utility Commission under ORS chapter 759; (H) Telecommunications utilities serving 15,000 access lines or more and regulated by the Public Utility Commission under ORS chapter 759; (I) Telecommunications cooperatives; (J) Electric cooperatives; (K) People's utility districts; (L) Contractors; (M) Excavators; (N) Railroads; (O) Cable system operators; and (P) Municipal electric utilities. (b) To facilitate appointment of members of the first board of directors, the Public Utility Commission shall, by order, select organizations that are most representative of each of the groups set forth in paragraph (a) of this subsection. Each organization so selected may nominate a member for the board and may, within the time allowed by the commission's order, submit the name of the nominee to the Governor, who shall consider the nominee before making any other appointment to the board. (c) After appointment of the first board of directors, to facilitate appointment of new members to the board, the board shall, by rule, select organizations that are most representative of each of the groups set forth in paragraph (a) of this subsection. Each organization so selected may nominate a member for the board and may, within the time allowed by rule, submit the name of the nominee to the Governor, who shall consider the nominee before making any other appointment to the board. (d) If the board of directors determines that a group not listed in paragraph (a) of this subsection should be represented on the board, the board may select an organization that is most representative of the group and may ask that organization to nominate a member. Upon receipt of the nomination, the board may request that the Governor appoint the nominee. (e) The Governor shall also appoint to the board of directors one employee of the commission and one employee of the Department of Transportation. (2) The term of office of a member is four years. A member is eligible for reappointment. Before the expiration of the term of a member, the board of directors shall solicit a nomination as provided in subsection (1) of this section and the Governor shall appoint a successor. If there is a vacancy for any cause, the board shall solicit a nomination as provided in subsection (1) of this section and the Governor shall make an appointment to become immediately effective for the unexpired term. A member may continue to serve until a successor is appointed. Nothing in this subsection or subsection (1) of this section shall restrict the authority of the Governor to appoint a person other than one of Enrolled Senate Bill 559 Page 2 the persons nominated according to this subsection or subsection (1) of this section. (3) The board of directors shall select one of its members as chairperson and another as vice chairperson, for such terms and with such duties and powers as the board considers necessary for the performance of the functions of those offices. A minimum of seven of the members of the board constitutes a quorum for the transaction of business. (4) The board of directors shall meet at least once every three months at a time and place determined by the board. The board shall meet at such other times and places specified by the call of the chairperson or of a majority of the members of the board. + } **************************** SECTION 3. { + (1) It is the function of the board of directors to operate the Oregon Utility Notification Center, through which a person shall notify operators of underground facilities of proposed excavations and request that the underground facilities be marked. (2) The board of directors shall: (a) Utilize a competitive process to contract with any qualified person to provide the notification required under subsection (1) of this section. (b) Subject to subsection (3) of this section, establish rates, on a per call basis, under which subscribers shall pay to fund all of the activities of the Oregon Utility Notification Center. (c) Adopt rules according to ORS 183.310 to 183.550 to become effective July 1, 1997, that regulate the notification and marking of underground facilities to prevent damage to underground facilities. The rules, insofar as is practicable, shall be consistent with the Oregon Utilities Coordinating Council Standards Manual of March 31, 1995. (3) The Oregon Utility Notification Center shall have all of the powers of a state agency. Except as provided in subsection (2) of this section, the provisions of ORS chapters 240, 276, 279, 282, 283, 291, 292 and 293 shall not apply to the Oregon Utility Notification Center. (4) Notwithstanding subsection (2)(b) of this section, the board of directors shall not establish rates or other charges that require payments from any subscriber who receives fewer than 50 telephone calls in the calendar year or that result in annual payments of more than $500 for any of the following subscribers: (a) Cities with a population under 15,000; (b) Telecommunications utilities serving fewer than 15,000 access lines and regulated by the Public Utility Commission under ORS chapter 759; (c) Cable system operators serving fewer than 15,000 customers; (d) Utilities, special districts, people's utility districts or authorities providing electricity, water or sanitary sewer service to fewer than 15,000 residential customers; and (e) Telecommunications cooperatives. + } **************************** SECTION 4. { + (1) On or before July 1, 1997, every operator of underground facilities shall subscribe to the Oregon Utility Notification Center. (2) On and after July 1, 1997, any person intending to excavate shall notify the Oregon Utility Notification Center at least two but not more than 10 business days before commencing an excavation. The board of directors shall, by rule, provide an exception to the requirement of advance notice for excavators in cases that involve an immediate danger to life or property, or a Enrolled Senate Bill 559 Page 3 customer service outage. The board may adopt additional exceptions as the board, in its discretion, determines necessary. (3) After July 1, 1997, nonsubscribing operators of underground facilities shall be responsible to all injured parties for all costs associated with damages to such facilities, loss of product or service or damages that occur as a result of excavation where the facilities damaged are under the control of the nonsubscribing operator and proper notice was given to the Oregon Utility Notification Center. (4) The provisions of this section shall not apply to operators of underground facilities that are located entirely on private property and that provide services exclusively for the use of residents or owners of the property. + } **************************** SECTION 5. { + (1) The board of directors shall file with the Legislative Assembly and the Governor, not later than April 15 of each year, a report covering the activities and operations of the Oregon Utility Notification Center for the preceding calendar year according to the provisions of ORS 192.230 to 192.250. (2) In carrying out the duties, functions and powers imposed by law on the Oregon Utility Notification Center, the board of directors may contract with any state agency or private party for the performance of such duties, functions and powers as the board considers appropriate. + } **************************** SECTION 6. { + Section 7 of this Act is added to and made a part of ORS chapter 757. + } **************************** SECTION 7. { + (1) Except as provided in subsection (2) of this section and in addition to all other penalties provided by law, every person who violates or who procures, aids or abets in the violation of any rule of the Oregon Utility Notification Center shall incur a penalty of not more than $1,000 for the first violation and not more than $5,000 for each subsequent violation. (2) In addition to all other penalties provided by law, every person who intentionally violates or who intentionally procures, aids or abets in the violation of any rule of the Oregon Utility Notification Center shall incur a penalty of not more than $5,000 for the first violation and not more than $10,000 for each subsequent violation. (3) Each violation of any rule of the Oregon Utility Notification Center shall be a separate offense. In the case of a continuing violation, each day that the violation continues shall constitute a separate violation. (4) Penalties under this section shall not be imposed except by order following complaint as provided in ORS 756.500 to 756.610. A complaint must be filed within two years following the date of the violation. (5) The Public Utility Commission may reduce any penalty provided in this section on such terms as the commission considers proper if: (a) The defendant admits to the violation or violations alleged in the complaint and makes a timely request for reduction of the penalty; or (b) The defendant submits to the commission a written request for reduction of the penalty within 15 days from the date of the penalty order. (6) If the amount of the penalty is not paid to the commission, the Attorney General, at the request of the commission, shall bring an action in the name of the State of Oregon in the Circuit Court for Marion County to recover the penalty. The action shall Enrolled Senate Bill 559 Page 4 not be commenced until after the time has expired for an appeal from the findings, conclusions and order of the commission. (7) Notwithstanding any other provision of law, the commission shall pay penalties recovered under this section to the Oregon Utility Notification Center. (8) The commission shall not seek penalties under this section except in response to a complaint alleging a violation of a rule or rules adopted by the Oregon Utility Notification Center. The commission may investigate any such complaint, and the commission shall have sole discretion to seek penalties under this section. + } **************************** SECTION 8. { + ORS 757.541, 757.546, 757.551, 757.556, 757.561, 757.566 and 757.571 are repealed June 30, 1997. + } ---------- Passed by Senate May 8, 1995 ........................................................... Secretary of Senate ........................................................... President of Senate Passed by House June 3, 1995 ........................................................... Speaker of House Enrolled Senate Bill 559 Page 5 Received by Governor: ......M.,............., 1995 Approved: ......M.,............., 1995 ........................................................... Governor Filed by Office of Secretary of State: ......M.,............., 1995 ........................................................... Secretary of State Enrolled Senate Bill 559 Page 6