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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 [
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) [
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