1     
DAMAGE TO UNDERGROUND UTILITIES FACILITIES

2     
AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Gage Froerer

6     
Senate Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This bill modifies a provision relating to the damage of underground utilities facilities.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides limits on an operator's claim against an excavator for damage to
14     underground utility facilities resulting from the excavator's violation of
15     requirements related to excavation involving underground utility facilities; and
16          ▸     requires an operator to give notice to an excavator and an opportunity to cure a
17     violation before the operator may sue the excavator or initiate an arbitration seeking
18     compensation for damage arising from the excavator's violation.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          54-8a-12, as enacted by Laws of Utah 2008, Chapter 344
26          54-8a-13, as last amended by Laws of Utah 2010, Chapter 286
27     


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 54-8a-12 is amended to read:
30          54-8a-12. Enforcement -- Attorney general.
31          (1) (a) The attorney general may bring an action in the district court located in the
32     county in which the excavation is located to enforce this chapter.
33          (b) The right of any person to bring a civil action for damage arising from an
34     excavator's or operator's actions or conduct relating to underground facilities is not affected by:
35          (i) a proceeding commenced by the attorney general under this chapter; or
36          (ii) the imposition of a civil penalty under this chapter.
37          (c) If the attorney general does not bring an action under Subsection (1)(a), the operator
38     or excavator may pursue any remedy, including a civil penalty.
39          (2) Whether through legal action or an arbitration under Section 54-8a-13, an operator
40     may not seek to recover compensation from an excavator for damage caused by the excavator's
41     violation of this chapter:
42          (a) unless the operator:
43          (i) gives written notice to the excavator within 30 days after the date the operator knew
44     or reasonably should have known of the damage caused by the excavator's violation of this
45     chapter; and
46          (ii) provides the excavator at least 90 days after the occurrence giving rise to the
47     operator's claim to cure the damage caused by the excavator's violation; and
48          (b) more than 180 days after the date the operator knew or reasonably should have
49     known of the damage caused by the excavator's violation of this chapter.
50          [(2)] (3) Any civil penalty imposed and collected under this chapter shall be deposited
51     into the General Fund.
52          Section 2. Section 54-8a-13 is amended to read:
53          54-8a-13. Underground Facilities Damage Dispute Board -- Arbitration --
54     Relationship with Public Service Commission.
55          (1) There is created within the commission the Underground Facilities Damage
56     Dispute Board to arbitrate a dispute arising from:
57          (a) an operator's or excavator's violation of this chapter; and
58          (b) damage caused by excavation during an emergency.

59          (2) The board consists of five members appointed by the governor as follows:
60          (a) one member from a list of names provided to the governor by a group representing
61     operators;
62          (b) one member from a list of names provided to the governor by the Associated
63     General Contractors;
64          (c) one member from a list of names provided to the governor by Blue Stakes of Utah;
65          (d) one member from a list of names provided to the governor by the Utah Home
66     Builders Association; and
67          (e) one member from the Division of Public Utilities.
68          (3) (a) A member of the board:
69          (i) shall be appointed for a three-year term; and
70          (ii) may continue to serve until the member's successor takes office.
71          (b) At the time of appointment, the governor shall stagger the terms of the members to
72     ensure that approximately 1/3 of the members of the board are reappointed each year.
73          (c) A vacancy in the board shall be filled:
74          (i) for the unexpired term; and
75          (ii) in the same manner as the board member is initially appointed.
76          (d) The board shall select an alternate for a specific board member to serve on a
77     specific case if it becomes necessary to replace a member who has a conflict of interest because
78     a dispute involves that member or that member's employer.
79          (4) Three members of the board constitute a quorum.
80          (5) [The] Subject to Subsection 54-8a-12(2), the board may, upon agreement of the
81     disputing parties, arbitrate a dispute regarding damages, not including personal injury damages,
82     arising between:
83          (a) an operator;
84          (b) an excavator;
85          (c) a property owner; or
86          (d) any other interested party.
87          (6) At least four members of the board shall be present and vote on an arbitration
88     decision.
89          (7) An arbitration before the board shall be consistent with Title 78B, Chapter 11, Utah

90     Uniform Arbitration Act.
91          (8) The prevailing party in an arbitration conducted under this section shall be awarded
92     its costs and attorney fees in an amount determined by the board.
93          (9) A member may not receive compensation or benefits for the member's service, but
94     may receive per diem and travel expenses in accordance with:
95          (a) Section 63A-3-106;
96          (b) Section 63A-3-107; and
97          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
98     63A-3-107.
99          (10) The commission shall provide administrative support to the board.






Legislative Review Note
Office of Legislative Research and General Counsel