Amend CSHB 2295 by striking all below the enacting clause and substituting the following: SECTION 1. SHORT TITLE. This Act may be cited as the Underground Facility Damage Prevention and Safety Act. SECTION 2. DEFINITIONS. In this Act: (1) "Agricultural operations" means activities performed on land and described by Section 23.51(2), Tax Code. (2) "Class A underground facility" means an underground facility that is used to produce, store, convey, transmit, or distribute: (A) electrical energy; (B) natural or synthetic gas; (C) petroleum or petroleum products; (D) steam; (E) any form of telecommunications service, including voice, data, video, or optical transmission, or cable television service; or (F) any other liquid, material, or product not defined as a Class B underground facility. (3) "Class B underground facility" means an underground facility that is used to produce, store, convey, transmit, or distribute: (A) water; (B) slurry; or (C) sewage. (4) "Corporation" means the Texas Underground Facility Notification Corporation created by this Act. (5) "Damage" means: (A) the defacing, scraping, displacement, penetration, destruction, or partial or complete severance of an underground facility or of any protective coating, housing, or other protective device of an underground facility; (B) the weakening of structural or lateral support of an underground facility; or (C) the failure to properly replace the backfill covering an underground facility. (6) "Excavate" or "excavation" means to use explosives or a motor, engine, hydraulic or pneumatically powered tool, or other machine-powered equipment of any kind and includes auguring, backfilling, boring, compressing, digging, ditching, drilling, dragging, dredging, grading, mechanical probing, plowing-in, pulling-in, ripping, scraping, trenching, and tunneling to remove or otherwise disturb soil to a depth of 16 or more inches. (7) "Excavator" means a person that excavates or intends to excavate in this state. (8) "Exploration and production underground facility" means an underground facility used by a person producing gas or oil, or both, for the production of that gas or oil, including facilities used for field separation, treatment, gathering, or storage of gas or oil. (9) "High speed data transmission" means a method of data transmission that does not include facsimile or voice transmission. (10) "Legal holiday" means a holiday specified as a legal holiday by Subchapter B, Chapter 662, Government Code. (11) "Mechanized equipment" means equipment operated by mechanical power, including a trencher, bulldozer, power shovel, auger, backhoe, scraper, drill, cable or pipe plow, and other equipment used to plow in or pull in cable or pipe. (12) "Notification center" means a legal entity that: (A) operates a notification system capable of serving excavators and operators statewide; (B) is created to: (i) receive notification of an intent to excavate and of damage to an underground facility and disseminate that information to member operators that may be affected by the excavation or damage and to other notification centers operating in this state; and (ii) receive notification of an extraordinary circumstance and disseminate that information to member operators and to other notification centers operating in this state; and (C) registers the following information with the corporation: (i) its name, address, and telephone number; (ii) the name of a contact person; (iii) a statement of compliance with Section 8(h) of this Act; and (iv) a listing of the counties in which it operates. (13) "Operator" means a person that operates an underground facility. (14) "Person" means an individual, corporation, partnership, association, government or governmental subdivision or agency, or other legal entity. (15) "Routine maintenance" means operations, not to exceed 24 inches in depth, within a road or drainage ditch involving grading and removal or replacement of pavement and structures. (16) "Secured facility" means a parcel of land used for commercial or industrial purposes that is surrounded entirely by a fence or other means of preventing access, including a fence with one or more gates that are locked at all times or monitored by an individual who can prevent unauthorized access. (17) "Underground facility" means a line, cable, pipeline system, conduit, or structure that is located partially or totally underground and that is used to produce, store, convey, transmit, or distribute telecommunications, electricity, gas, water, sewage, steam, or liquids such as petroleum, petroleum products, or hazardous liquids. (18) "Saturday notification" means a notice of intent to excavate provided by an excavator to a notification center on a Saturday before 11:59 a.m. (19) "Violation" means a violation of Section 9 of this Act, Section 16 of this Act, or both. SECTION 3. EXEMPTIONS. (a) The following are not subject to this Act as underground facilities: (1) an aboveground or underground storage tank, sump, or impoundment or piping connected to an aboveground or underground storage tank, sump, or impoundment located in the same tract of land as the storage tank, sump, or impoundment; (2) an underground facility operated by the owner of a secured facility and located entirely within the secured facility; (3) an underground facility that serves only the owner of the underground facility or the owner's tenant and that is located solely on the owner's property; (4) piping within a well bore; (5) the portion of an exploration and production underground facility that is located within the boundaries of the oil or gas field from which the oil and gas is produced and that is not located in the boundaries of an established easement or right-of-way granted for the benefit of a governmental entity or a private entity if the easement or right-of-way is granted for a public purpose; or (6) an underground facility that serves a cemetery and is located solely on the cemetery's property. (b) An operator of an underground facility that is exempted under this section may voluntarily convert that facility to a Class A underground facility by sending written communication from a competent authority of the operator to the Texas Underground Facility Notification Corporation advising of the status change. (c) The provisions of this Act are inapplicable to contractors working in the public right-of-way pursuant to a contract with the Texas Department of Transportation. (d) Excavation by an employee of the Texas Department of Transportation on a segment of the state highway system is not subject to this Act, provided that such excavation is: (1) less than 24 inches in depth; and (2) no more than 10 feet from the right-of-way line. SECTION 4. COMPLIANCE BY PERMIT HOLDERS. (a) The fact that a person has a legal permit, permission from the owner of the property or the owner's licensee, or an easement to conduct excavation operations does not affect the person's duty to comply with this Act. (b) Compliance with this Act does not affect a person's responsibility to obtain a permit required by law. SECTION 5. TEXAS UNDERGROUND FACILITY NOTIFICATION CORPORATION. (a) The Texas Underground Facility Notification Corporation is created to provide statewide notification services under this Act. (b) The corporation is a public nonprofit corporation and has all the powers and duties incident to a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01, et seq., Vernon's Texas Civil Statutes), except that the corporation: (1) may not make donations for the public welfare or for charitable, scientific, or educational purposes or in aid of war activities; (2) may not merge or consolidate with another corporation; (3) is not subject to voluntary or involuntary dissolution; and (4) may not be placed in receivership. (c) The corporation is subject to Chapters 551 and 552, Government Code, except that the corporation may not disseminate, make available, or otherwise distribute service area map data or information provided by an operator unless that action is necessary to perform the corporation's specific obligations under this Act. (d) All expenses of the corporation shall be paid from income of the corporation. Liabilities created by the corporation are not debts of the state, and the corporation may not secure any liability with funds or assets of the state. Except as provided by Section 6 of this Act, the corporation may not, for any reason, impose an assessment, fee, or other charge, including a charge for inputting data, against an operator. (e) The board of directors of the corporation is composed of the following 12 members appointed by the governor: (1) six representatives of the general public; (2) one representative of the gas industry; (3) one representative of the telecommunications industry; (4) one representative of the electric industry; (5) one representative of cable television companies; (6) one representative of municipalities; and (7) one representative of persons who engage in excavation operations who are not also facility operators. (f) Board membership is voluntary and a director is not entitled to receive compensation for serving on the board. Directors serve staggered three-year terms, with the terms of four directors expiring each August 31. A director serves until the director's successor is appointed by the governor and assumes office. The board may declare a director's office vacant if the director ceases to be associated with the industry or an operator the director represents. Not later than the 60th day after the date a vacancy on the board is declared, the governor shall appoint a person to fill the vacancy for the remainder of the unexpired term. (g) The board shall elect from among its directors a chair and vice chair. The chair and vice chair serve for a term of one year and may be reelected. (h) The corporation's bylaws must provide that each director is entitled to one vote. SECTION 6. FEES AND RATES. (a) Before January 15 of each year, a Class A facility operator shall pay to the corporation a fee of $50 for services to be performed by the corporation during that calendar year. A fee for a part of a year may not be prorated. (b) Each time a notification center receives a call from an excavator under Section 9(a) of this Act, the notification center shall pay the corporation one cent. This charge shall be waived for the remainder of any year in which the corporation receives $500,000 under this subsection. (c) The notification center shall charge a Class A underground facility operator not more than $1.25 for a call made to the system that affects the operator. The board may increase or decrease the maximum charge only on an affirmative vote of at least two-thirds of the total number of votes entitled to be cast. A notification center may petition the corporation for an increase in the maximum charge and is entitled to the increase on proof that costs exceed the maximum charge. (d) The notification center may not charge an operator any additional fee such as an initiation fee, a membership fee, or a set-up fee. SECTION 7. DUTY OF AN OPERATOR. (a) Each operator of a Class A underground facility, including a political subdivision of this state, shall participate in a notification center as a condition of doing business in this state. (b) Each operator of a Class A underground facility shall provide to the notification center: (1) maps or grid locations or other identifiers determined by the operator indicating the location of the operator's underground facilities; (2) the name and telephone number of a contact person or persons; and (3) at least quarterly but, if possible, as those changes occur, information relating to each change in the operator's maps or grid locations or other identifiers or in the person or persons designated as the operator's contact person or persons. (c) The notification center may not require an operator to conduct a survey of the operator's underground facilities or alter the operator's existing signage. (d) An operator of a Class B underground facility may voluntarily convert to a Class A underground facility operator by sending written communication from a competent authority of the operator to the Texas Underground Facility Notification Corporation advising of the status change. (e) At least once each calendar year, at intervals not exceeding 15 months, each Class A underground facility operator who conveys, transmits, or distributes by means of its underground facilities service directly to more than one million residential customers within this state shall provide all of its residential customers in this state general information about excavation activities covered by this Act and the statewide toll-free telephone number established by the corporation. SECTION 8. DUTY OF NOTIFICATION CENTER. (a) At the time an excavator provides a notification center with the excavator's intent to excavate, the notification center shall advise the excavator that water, slurry, and sewage underground facilities in the area of the proposed excavation may not receive information concerning the excavator's proposed excavation. (b) Not later than two hours after the time the notification center receives a notice of intent to excavate from an excavator, the notification center shall provide via high speed data transmission to every other affected notification center operating in this state the information required by Section 9(b) of this Act received from the excavator. (c) Not later than two hours after the time the notification center receives a notice of intent to excavate from an excavator or from a different notification center, the notification center shall notify each member operator that may have an underground facility in the vicinity of the proposed excavation operation. (d) A notification center shall: (1) operate 24 hours a day every day of the year; (2) have the capability to receive emergency information 24 hours a day from excavators and disseminate the information as soon as it is received to the appropriate operators and to all registered and affected notification centers operating in this state; (3) have the capacity to receive extraordinary circumstance information 24 hours a day from operators and disseminate the information as soon as it is received to all registered and affected notification centers; (4) submit to the corporation, not later than May 15 of each year, a pro rata share of the expense, as established by the corporation, of the statewide toll-free telephone number and the call router; (5) provide, on request of an excavator, a contact name and telephone number of a representative of the operator for special circumstances; and (6) have personnel capable of assisting Spanish-speaking customers. (e) A notification center that notifies another notification center under Subsection (b), (d)(2), or (d)(3) of this section shall recover an amount not exceeding the actual cost of providing the notice from the notification center receiving the notice. (f) A notification center shall maintain for not less than four years a record to document: (1) the receipt of: (A) a notice of intent to excavate; (B) damage to an underground facility; (C) an emergency excavation; and (D) an extraordinary circumstance; (2) the information the excavator is required to provide to the notification center under this Act; (3) contact with operators and other notification centers; and (4) the information the notification center provided to the excavator. (g) A notification center may not destroy records that relate to any matter that is involved in litigation if the notification center is placed on notice that the litigation has not been finally resolved. (h) A notification center shall, at all times, maintain a minimum of $5 million professional liability and errors and omissions insurance to cover duties prescribed by this Act. (i) The notification center may not disseminate, make available, or otherwise distribute maps or information provided by an operator unless that action is necessary to perform the notification center's specific obligations under this Act. SECTION 9. DUTY OF AN EXCAVATOR. (a) Except as provided by Sections 12 and 13 of this Act, a person who intends to excavate shall notify a notification center not earlier than the 14th day before the date the excavation is to begin or later than the 48th hour before the time the excavation is to begin, excluding Saturdays, Sundays, and legal holidays. Provided, however, if an excavator makes a Saturday notification, the excavator may begin the excavation the following Tuesday at 11:59 a.m. unless the intervening Monday is a holiday. If the intervening Monday is a holiday, the excavator may begin the excavation the following Wednesday at 11:59 a.m. (b) The notice required under this section shall include: (1) the name of the person serving the notice; (2) the location of the proposed area of excavation, including: (A) the street address, if available, and the location of the excavation at the street address; or (B) if there is no street address, an accurate description of the excavation area using any available designations such as the closest street, road, or intersection; (3) the name, address, and telephone number of the excavator or the excavator's company; (4) the excavator's field telephone number, if one is available; (5) the starting date and time and the anticipated completion date of excavation; and (6) a statement as to whether explosives will be used. (c) To have a representative present during the excavation, the operator shall contact the excavator and advise the excavator of the operator's intent to be present during excavation and confirm the start time of the excavation. If the excavator wants to change the start time, the excavator shall notify the operator to set a mutually agreed-to time to begin the excavation. SECTION 10. DUTY OF THE TEXAS UNDERGROUND FACILITY NOTIFICATION CORPORATION. (a) The corporation shall develop and implement processes to: (1) maintain a registration of: (A) notification centers as provided by Section 2(12)(C) of this Act; (B) operators who elect to convert facilities to Class A facilities under Section 3(b) of this Act; or (C) operators who elect to become Class A underground facility operators under Section 7(d) of this Act; (2) establish minimum technical standards used by notification centers; (3) establish a statewide toll-free telephone number to be used by excavators that incorporates the use of a call router system that routes calls to the notification centers on a pro rata basis; (4) oversee the bid process and select the vendor for the statewide toll-free telephone number; (5) oversee the bid process and select the vendor for the call router system; (6) determine before May 1 of each year the cost-sharing between the notification centers of: (A) the toll-free telephone number; and (B) the call router system prescribed by Section 8(d)(4) of this Act; (7) develop public service announcements to educate the public about statewide one-call notification and its availability; (8) establish a format for information transfer among notification centers other than high speed data transmission, if appropriate; (9) on a complaint concerning charges, investigate and determine appropriate charges; (10) recommend a civil penalty against a notification center that does not meet the requirements of this Act of not less than $1,000 or more than $5,000 for each violation; (11) refer the recommended penalty to the attorney general who shall institute a suit in a court of competent jurisdiction to recover the penalty; (12) assist in dispute resolution among notification centers or between a notification center and an operator; (13) assist any operator who encounters difficulty in joining a notification center; and (14) review and study design standards for the placement of underground facilities throughout this state. (b) The corporation shall solicit proposals for the contract to establish and operate the statewide toll-free telephone number and the call router system by using a request for proposals process that includes specifications that have been approved by the board of directors in accordance with this Act. (c) The corporation is not required to award the contract to the lowest offeror if the terms of another proposal would result in a lower annual cost and are more advantageous to the corporation and its members. The corporation may reject all proposals if the corporation finds that none of the proposals is acceptable. After the proposals are opened, each document relating to the consideration of a proposal or the award of a contract and the text of the contract are considered books and records of the corporation for the purposes of Article 2.23, Texas Non-Profit Corporation Act (Article 1396-2.23, Vernon's Texas Civil Statutes). SECTION 11. NOTIFICATION BY AN EXCAVATOR. (a) A person required to provide notice under this Act is considered to have provided the notice when the person delivers the required information and a notification center receives that information within the time limits prescribed by this Act. (b) A person may deliver information required under this Act by any appropriate method, including the use of any electronic means of data transfer. SECTION 12. EXCEPTION IN CASE OF EMERGENCY. (a) Section 9 of this Act does not apply to an emergency excavation that is necessary to respond to a situation that endangers life, health, or property or a situation in which the public need for uninterrupted service and immediate reestablishment of service if service is interrupted compels immediate action. (b) The excavator may begin emergency excavation under Subsection (a) of this section immediately and shall take reasonable precautions to protect underground facilities. (c) When an emergency exists, the excavator shall notify a notification center as promptly as reasonably possible. SECTION 13. OTHER EXCEPTIONS TO DUTY OF EXCAVATORS. Section 9 of this Act does not apply to: (1) interment operations of a cemetery; (2) operations at a secured facility if: (A) the excavator operates each underground facility at the secured facility, other than those within a third-party underground facility easement or right-of-way; and (B) the excavation activity is not within a third-party underground facility or right-of-way; (3) routine railroad maintenance within 15 feet of either side of the midline of the track if the maintenance will not disturb the ground at a depth of more than 18 inches; (4) activities performed on private property in connection with agriculture operations, except that if a person excepted by this subdivision elects to comply with this Act and the operator fails to comply with this Act, the person is not liable to the underground facility owner for damages to the underground facility; (5) operations associated with the exploration or production of oil or gas if the operations are not conducted within an underground facility easement or right-of-way; (6) excavations by or for a person that: (A) owns, leases, or owns a mineral leasehold interest in the real property on which the excavation occurs; and (B) operates all underground facilities located at the excavation site; or (7) routine maintenance by a county employee on a county road right-of-way to a depth of not more than 24 inches. SECTION 14. DUTY OF OPERATOR TO PERSON EXCAVATING. (a) Not later than the 48th hour after the time the excavator gives to the notification system notice of intent to excavate, excluding Saturdays, Sundays, and legal holidays, 11:59 a.m. on the Tuesday following a Saturday notification unless the intervening Monday is a holiday, 11:59 a.m. on the Wednesday following a Saturday notification if the intervening Monday is a holiday, or at a time agreed to by the operator and the excavator, each Class A underground facility operator contacted by the notification system shall mark the approximate location of its underground facilities at or near the site of the proposed excavation if the operator believes that marking the location is necessary. (b) An operator shall refer to the American Public Works Association color coding standards when marking. (c) An excavator who has fully complied with this Act may not be liable for damage to an underground facility that was not marked in accordance with this Act. SECTION 15. DUTY OF OPERATOR IN EVENT OF AN EXTRAORDINARY CIRCUMSTANCE. (a) The deadline prescribed by Section 14(a) of this Act does not apply if the operator experiences an extraordinary circumstance due to an act of God, including a tornado, a hurricane, an ice storm, or a severe flood, or a war, riot, work stoppage, or strike that limits personnel or resources needed to fulfill its obligations under this Act. (b) The operator shall notify a notification center of the extraordinary circumstance and shall include in the notification: (1) the nature and location of the extraordinary circumstance; (2) the expected duration of the situation and the approximate time at which the operator will be able to resume location request activities; and (3) the name and telephone number of the individual that the notification system can contact if there is an emergency that requires the operator's immediate attention. (c) In addition to the notification required by Subsection (b) of this section, the operator shall also notify each excavator that has a pending location request in the location where an extraordinary circumstance is being experienced and shall include in the notification: (1) the fact that the operator is experiencing an extraordinary circumstance; and (2) the approximate time at which the operator will mark the requested location. (d) A notification center shall inform each excavator notifying the system under Section 9 of this Act that the operator's location request activities are suspended until the extraordinary circumstance has discontinued or has been corrected within the affected location. (e) An excavator is relieved from all provisions of this Act until such time as the operator notifies the notification center that the operator has resumed location request activities within the affected location. SECTION 16. EXCAVATION DAMAGE. (a) If an excavation operation results in damage to an underground facility, the excavator shall immediately contact the underground facility operator to report the damage. (b) If the excavator is not certain of the operator's identity, the excavator shall contact a notification center to report the damage, and the notification center shall immediately notify all other affected notification centers. Immediately on receiving notification, each notification center shall contact each member operator that has underground facilities in or near the area in which the damage occurred. (c) Only the operator or a person authorized by the operator may perform repairs, and the repairs must be made in an expeditious manner. (d) An excavator shall delay backfilling in the immediate area of the damage until the damage is reported to the operator and a repair schedule is mutually agreed to by the excavator and the operator. (e) If damage endangers life, health, or property because of the presence of flammable material, the excavator shall keep sources of ignition away. SECTION 17. CIVIL PENALTY. (a) An excavator that violates either Section 9 or Section 16 of this Act is liable for a civil penalty of not less than $50 or more than $100. If it is found at the trial on a civil penalty that the excavator has violated this Act and has been assessed a penalty under this section one other time before the first anniversary of the date of the most recent violation, the excavator is liable for a civil penalty of not less than $100 or more than $200. If it is found at the trial on a civil penalty that the excavator has violated this Act and has been assessed a penalty under this section at least two other times before the first anniversary of the date of the most recent violation, the excavator is liable for a civil penalty of not less than $200 or more than $500. (b) In assessing the penalty the court shall consider the actual damage to the facility, the impact of the excavator's actions on the public health and safety, whether the violation was a wilful act, and any good faith of the excavator in attempting to achieve compliance. (c) Venue for a proceeding under this section is in the county in which: (1) all or part of the alleged violation occurred; (2) the defendant has its principal place of business in this state; or (3) the defendant resides, if in this state. (d) The appropriate county attorney or criminal district attorney shall bring the action to recover the civil penalty. (e) Fifty percent of the civil penalty collected under this section shall be transferred to the county treasurer of the county prosecuting the action and 50 percent of the civil penalty collected under this section shall be transferred to the corporation. (f) The county treasurer shall deposit all money received under this section in the county road and bridge fund. (g) The corporation shall use the money received under this section to develop public service announcements to educate the public about the statewide one-call notification system and its availability as prescribed by Section 10(a)(7) of this Act. (h) Except as otherwise specifically provided in this Act, this section does not affect any civil remedies otherwise provided by law for personal injury or for property damage, including any damage to an underground facility. (i) Subsection (a) of this section does not apply to a residential property owner excavating on the property owner's own residential lot. SECTION 18. CRIMINAL PENALTY FOR REMOVAL, DAMAGE, OR CONCEALMENT OF MARKER OR SIGN. (a) A person commits an offense if: (1) the person without authorization from the owner or operator of the facility intentionally removes, damages, or conceals a marker or sign giving information about the location of a Class A underground facility; and (2) the marker or sign gives notice of the penalty for intentional removal, damage, or concealment of the marker or sign. (b) An offense under this section is a Class B misdemeanor. SECTION 19. EXISTING NOTIFICATION CENTERS. A notification center operating on the effective date of this Act may continue to operate if the notification center complies with this Act. SECTION 20. INITIAL DIRECTORS. (a) The governor shall appoint the initial directors under Section 5 of this Act before November 1, 1997. (b) In appointing the initial members of the board of directors of the corporation, the governor shall appoint the members so that: (1) two representatives of the general public and the representatives of the electric industry and of cable television companies serve terms expiring on August 31, 1998; (2) two representatives of the general public and the representatives of the telecommunications and gas industries serve terms expiring on August 31, 1999; and (3) two representatives of the general public and the representatives of municipalities and excavators serve terms expiring on August 31, 2000. SECTION 21. FACILITY ON COUNTY OR MUNICIPAL ROAD. This Act does not affect any contractual or statutory right of a county or municipality to require an operator to relocate, replace, or repair its underground facility. SECTION 22. EFFECTIVE DATE; APPLICATION. This Act takes effect September 1, 1997, and applies as follows: (1) the powers and duties of the corporation under Sections 5 and 10 of this Act apply only on and after November 1, 1997, except that: (A) the corporation shall develop and implement the processes required by Section 10(a) of this Act before March 1, 1998; and (B) the corporation shall select vendors as required by Sections 10(a)(4) and (5) of this Act before May 1, 1998; (2) the initial fee due under Section 6(a) of this Act is due January 15, 1998; (3) registration is not required under Section 2(12)(C) of this Act until March 1, 1998; (4) the duties of an operator under Section 7 of this Act apply only on and after May 1, 1998; (5) a fee is not due under Section 6(b) or (c) before October 1, 1998; and (6) the rights and duties provided by Sections 3, 4, 8, 9, 11, 12, 13, 14, 15, 16, 17, and 21 apply only on and after October 1, 1998. SECTION 23. EXISTING LAW. This Act does not affect any civil remedy for personal injury or for property damage, including any damage to an underground facility. SECTION 24. EMERGENCY. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended.