BILL ANALYSIS



C.S.H.B. 620
By: Carter
04-28-95
Committee Report (Substituted)


BACKGROUND

Currently, a person who excavates in Texas is not required to
determine if any underground facilities are beneath the proposed
excavation site.  Furthermore, an excavator is not required to
report any damage they may cause.

Statistics show that excavation work is responsible for 45 percent
of pipeline failures, making third-party damage or outside-force
damages the leading cause of all ruptures.  Furthermore, more than
250,000 Texans each year lose total service/or access to long
distance service due to underground facilities that are cut by
excavators who fail to call for information.  A half-inch fiber
optic cable cut can disrupt service to thousands of citizens and
cut off whole communities or sections of communities from vital 9-1-1 service.  Nearly 200,000 Texans lose access to 911 service each
year due to cable cuts.

Although several one-call centers offer notification services in
Texas today, lines continue to be cut and critical services are
interrupted.  These cuts occur because excavators are not required
to call before they dig and when they do call one of these
notification centers, the center only notifies underground facility
operators who have joined their system.

Texas is one of only two states that has not passed some form of
one-call legislation.

PURPOSE

This legislation would create a statewide notification system which
would be accessed by a single 1-800 number.  Entities that own
underground facilities would be required to participate in the
system and persons excavating in Texas would be required to call
the 1-800 number prior to digging.  Furthermore, excavators would
be required to report damage they may cause.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Title

SECTION 2.  Defines "Corporation," "damage," "excavation,"
"excavator," "exploration and production underground facility,"
"legal holiday," "mechanized equipment," notification system,"
"operator," "person," "secured facility," underground facility."

SECTION 3.  Lists underground facilities that are not subject to
this Act.

SECTION 4.  Provides that having a permit or permission from a
property owner to dig does not affect an excavator's duty to comply
with this Act.

SECTION 5.  Establishes the Texas Underground Facility Notification
Corporation.  Provides for election of the Board of Directors and
directs the Board to contract with a public or private entity to
establish the "One-Call" notification system. Provides for weighted
voting after January 1, 1997.  Details the process, by which, the
Board will select a vendor to operate the notification center. 
Specifies that a 2/3 vote is required to approve bid specifications
and to award the contract.

SECTION 6.  Provides that underground facility owners join the
Underground Facility Notification Corporation  and provide maps or
other identifiers of the underground facilities they own. 
Specifies that the corporation may not require an operator to
conduct a survey of the operator's underground facilities.  

SECTION 7.  Specifies that each operator shall pay an initial entry
fee of $50 and that the notification system shall charge each
operator for a call made to the system that affects the operator. 
Requires a 2/3 vote of the Board to establish the cost per call. 
Establishes a $1.25 cap on the cost of the cal.  Requires a 3/4
vote of the Board to exceed the $1.25 cap.

SECTION 8.  Provides that a person is considered to have complied
with this Act when they contact the notification center within the
time limits prescribed by the Act.

SECTION 9.  States that a person who intends to excavate must
notify the notification system  not earlier than the 14th day
before the date of excavation or later than 48 hours before the
time of excavation.  Specifies the information required in the
notice.

SECTION 10.  Provides for precautions to avoid damage to
facilities.

SECTION 11.  Provides that in emergency situations an excavator may
begin excavation immediately.

SECTION 12.  Lists certain instances in which a person is not
required to call the notification center.

SECTION 13.  Specifies the duties of the notification system. 
Provides that the notification center shall provide to the
excavator the name of each entity that owns an underground facility
where they intend to dig.  Provides that the notification center
must operate a statewide toll-free number, operate 24 hours a day
and maintain a $5 million liability insurance policy.

SECTION 14.  Provides that not later than 48 hours after receiving
notice that an excavator intends to dig on or near an underground
operator's facility, the operator shall locate and mark the
approximate location of its underground facilities, if the operator
believes that locating and marking the location is necessary.

SECTION 15.  Provides that the deadline imposed upon underground
facility operators to locate and mark their facilities does not
apply if the operator experiences extraordinary circumstances, such
as an act of God, a tornado, a hurricane, an ice storm, a severe
flood, a war, or a riot.

SECTION 16.  Specifies that if excavation damage occurs, the
excavator shall, if they know whose facility has been damaged,
immediately contact the underground facility operator.  If the
excavator is not certain of the operator's identity, the excavator
shall contact the notification system.

SECTION 17.  Provides that an underground operator may file an
action in court to enjoin excavation conducted in violation of this
Act.

SECTION 18.  Provides for civil penalties for excavators that
violate this Act.  Specifies how fine revenues shall be divided.

SECTION 19.  Provides for the election of the Board of Directors of
the Texas Underground Facility Notification Corporation and for
staggering the terms of the members.

SECTION 20.  Effective Date.

SECTION 21.  Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute:
     Adds a definition of "exploration and production underground
facility" and clarifies the exception for exploration and
production underground facilities to be included in this Act.
     Limits board service to one employee of a member operator and
changes Board member to Director.
     Adds language to require a 2/3 vote of the Board to set the
bid specifications and to award the contract.
     Provides for a 2/3 vote to set the initial cost per call and
a 3/4 vote to exceed the $1.25 cap on cost per call.
     Provides for weighted voting after the first year.
     Provides that the notification center may not require an
operator to conduct surveys of their underground facilities.
     Requires an excavator to provide detailed information to the
notification center on the location of the excavation.
     Requires that when damage occurs, the excavator shall notify
the facility owner directly if the excavator knows whose line has
been hit.  If the   excavator does not know who owns the damaged
facility, the excavator shall contact the notification center.
     Clarifies that an excavator may presume, unless otherwise
notified, that the marking of an underground facility is within 18
inches of either side of the underground facility.
     Adds war or riot to extraordinary circumstances for purposes
of waiving the requirement of line location.
     Removes language that stated that this Act does not effect any
other civil remedies.
     Farmers and ranchers are only required to call when excavating
deeper than 18 inches and they are digging in an underground
facility easement or right-of-way.  Also, removes farmers and
ranchers from the penalty section. 
     Adds an exemption for persons excavating less than 12 inches
in depth.
     Provides that excavations related to railroad maintenance are
exempt so long as the excavation does not go beyond 18 inches and
is within 15 feet of either side of the middle of the track.
     Provides that the counties' portion of the civil fine revenue
shall be deposited in the counties' general fund.
     A county that performs road and bridge activities is exempt
from calling if the excavation does not exceed 12 inches and is not
conducted in an underground facility easement or right-of-way.
     Provides that an excavator may dig before the 48 hour time
requirement if the excavator has written permission from each
underground facility owner who has facilities that are affected.
     Provides that underground facilities that serve only a
cemetery and are located solely on the cemetery's property are not
required to participate in the system.

SUMMARY OF COMMITTEE ACTION

H.B. 620 was considered by the committee in a public hearing on
March 14, 1995.
The following persons testified for the bill:  Mel Kimbrel,
representing MCI Telecommunications Corporation; Chris LLiteras,
representing Southwestern Bell Telephone Company; Peter Slot,
representing himself; Ronald Knight, representing himself and GTE;
Allan Dees, representing himself and Texaco E&D Inc.; Patrick
Nugent, representing the Texas Natural Gas Pipeline Association;
Ellen Weaver, representing Lone Star Gas Company; Richard Hyde,
representing Panhandle Eastern Corporation; Gary Smith,
representing Lone Star Gas Company; Patrick Mullens, representing
Phillips Petroleum Company; Ben Sebree, representing Texas Mid-Continent Oil and Gas Association; Larry Shamp, representing Shell
Pipe Line Corporation, Shell Western EXP, and TMOGA; Doug Bryant,
representing AT&T.

The following persons testified against the bill: Bill Powers,
represnting the Texas Farm Bureau; Jim Allison, representing County
Judges and Commissioners Association of Texas; Christi Craddick,
representing Texas and Southwestern Cattleraisers Association;
Sheryl Nelson Cole, representing the Texas Municipal League.

The following person testified on the bill: Mary McDaniel,
representing the Texas Railroad Commission; Phil Becker,
representing Associated General Contractors of Texas.
The bill was referred to the subcommittee on "One Call".

H.B. 620 was considered by the subcommittee on "One Call" in a
public hearing on April 3, 1995.  The subcommittee considered seven
amendments to the bill.  Six of those amendments were adopted
without objection.  One amendment was left pending.
The bill was left pending.

H.B. 620 was considered by the subcommittee on "One Call" in a
public hearing on April 12, 1995.  
The following persons testified for the bill: Lee Marrs,
representing Texas Excavation Safety System; Richard Hyde,
representing Panhandle Corporation; Allan Dees, representing Texaco
E&P Inc.
The following persons testified against the bill: Jim Allison,
representing County Judges and Commissioners Association of Texas;
Ed Small, representing Texas & Southwestern Cattle Raisers.
The subcommittee considered amendments #7, 8, and 9 to the bill. 
Amendments #7 and #8 were adopted without objection.  Amendment #9
was adopted by a record vote of 2 ayes, 0 nays, 0 pnv, 1 absent.
The subcommittee reconsidered the vote by which amendment #4 had
been adopted in the April 3, 1995 meeting.  The motion to
reconsider passed by a record vote of 2 ayes, 0 nays, 0 pnv, 1
absent.  The motion to adopt Amendment #4 then failed by a record
vote of 0 ayes, 2 nays, 0 pnv, and 1 absent.

The bill was reported favorably as amended to the full committee by
a record vote of 2 ayes, 0 nays, 0 pnv, and 1 absent.

After being recalled from subcommittee, the bill was considered by
the committee in a formal meeting on April 25, 1995.  The committee
considered a complete substitute for the bill.  The substitute was
adopted without objection.  The bill was reported favorably as
substituted, with the recommendation that it do pass and be
printed, by a record vote of 5 ayes, 2 nays, 1 pnv, 1 absent.