BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 661|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  SB 661
          Author:   Hill (D) 
          Amended:  1/4/16  
          Vote:     21  

           PRIOR VOTE NOT RELEVANT

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  8-0, 1/11/16
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Wieckowski
           NO VOTE RECORDED:  Mendoza

           SENATE JUDICIARY COMMITTEE:  5-1, 1/12/16
           AYES:  Jackson, Hertzberg, Leno, Monning, Wieckowski
           NOES:  Moorlach
           NO VOTE RECORDED:  Anderson

           SENATE APPROPRIATIONS COMMITTEE:  6-1, 1/21/16
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza
           NOES:  Nielsen

           SUBJECT:   Protection of subsurface installations


          SOURCE:    Author
          
          DIGEST:  This bill modifies "call before you dig" laws governing  
          excavations near subsurface installations.  Among other things,  
          this bill enhances the existing enforcement powers of specified  
          state entities, revises liability provisions that apply to the  
          pre-excavation notification and subsurface installation marking  
          requirements for operators and excavators, and establishes the  
          California Underground Facilities Safe Excavation Advisory  








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          Committee to enforce laws relating to the protection of  
          underground infrastructure, as specified.
          
          ANALYSIS:   


          Existing law:


           1) Licenses and regulates more than 300,000 contractors under  
             the Contractors State License Law (Contractors Law) by the  
             Contractors State License Board (CSLB) within the Department  
             of Consumer Affairs.  The CSLB is under the direction of the  
             registrar of contractors. (Business and Professions Code  
             (BPC) § 7000 et seq.)

           2) Requires all owners of subsurface infrastructure, such as  
             gas, oil, and water pipes, electrical and telecommunications  
             conduits, etc., (except the Department of Transportation) to  
             participate in and fund regional notification ("one-call")  
             centers.  (Government Code (GC) § 4216.1)

           3) Exempts owners of non-pressurized sewer lines and storm  
             drains from needing to become members of the one-call  
             centers.  (GC § 4216)

           4) Requires persons performing excavations to call one-call  
             centers to have the locations of underground facilities  
             marked before starting an excavation (GC § 4216.2), but  
             exempts homeowners and other private property owners from  
             this requirement for excavations on their own property.  (GC  
             § 4216.8)

           5) Requires owners of subsurface installations to mark their  
             underground facilities within two working days of receiving a  
             notification.  (GC § 4216.3)

           6) Requires excavators to use hand tools within two feet on  
             each side of a marked line indicating a subsurface facility  
             to determine where that facility is before using any power  
             excavating equipment.  (GC § 4216.4)

           7) Provides that an excavator or operator who violates  
             excavation requirements to be subject to the following: 







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              a)    A civil penalty up to $10,000 for negligent  
                violations.

              b)    A civil penalty up to $50,000 for knowing and willful  
                violations.

              c)    Additional civil remedies provided for in law for  
                personal injury and property damages.

              d)    Any actions brought forth by the Attorney General,  
                district attorney, or local or state agency that issued  
                the excavation permit, to enforce the civil penalties  
                listed above.  (GC § 4216.6)

           1) States that operators and excavators are liable for damages  
             caused from violations of the one-call law, and that  
             operators who fail to participate in the one-call centers  
             cannot claim damages from an excavator who has complied with  
             the law.  (GC § 4216.7)

           2) Authorizes CSLB to issue a citation for a violation of  
             Contractors Law in lieu of license denial, suspension, or  
             revocation.  (BPC § 7099, 16 CCR § 884)

           3) Requires CSLB to initiate a disciplinary action against a  
             licensee within 30 days of receipt of a certified copy of the  
             Labor Commissioner's finding of a willful or deliberate  
             violation of the Labor Code by a licensee.  (BPC § 7110.5)


          This bill:


           1) Establishes the California Underground Facilities Safe  
             Excavation Advisory Committee (the Advisory Committee),  
             within the CSLB, to investigate violations of the state's  
             excavation and subsurface installation laws, to coordinate  
             education and outreach, and develop standards.


          2)Creates a Safe Energy Infrastructure and Excavation Fund to  
            cover administrative costs of the Advisory Committee, an  
            education program, and a workforce training program.  The  







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            administrative costs and programs will be funded by fines  
            levied on gas and electric companies for safety violations,  
            grants, fees charged to regional notification center members,  
            filing fees from complaint hearings, and any other source. 


          3)Authorizes the CSLB, the Public Utilities Commission (PUC),  
            and the Office of the State Fire Marshal to accept, amend, or  
            reject the recommendations of the Advisory Committee to  
            enforce specific provisions related to operators and  
            excavators whose activities or business falls within the  
            agency's statutorily defined enforcement jurisdiction.


          4)Requires an excavator to delineate the area to be excavated  
            before notifying the regional notification center, as  
            specified.  


          5)Provides that in an action for reimbursement or  
            indemnification for a claim arising from damage to a  
            subsurface installation in which a court finds that the  
            excavator complied with the requirements of the law, the  
            excavator may be awarded reasonable attorney's fees and  
            expenses.


          6)Requires, if the operator of a high-priority subsurface  
            installation finds that the depth of the subsurface  
            installation subject to agricultural activities is  
            insufficient to safely perform those activities, the operator  
            must send notification of the potential hazard to the  
            landowner by registered mail.  Within specified days of that  
            notification, the operator must go to the site at a time  
            mutually agreed upon by both parties, and identify the  
            location and depth of the high-priority subsurface  
            installation with permanent markers.


          7)Requires each gas company to collect data to inform its  
            outreach activities, including:  


             a)   Damages to underground PUC-regulated pipeline facilities  







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               that occur during the performance of landscaping activities  
               from the day of enactment of this bill until January 1,  
               2020,


             b)   All claims filed by a gas company against an excavator  
               for damage to a PUC-regulated pipeline facility,


             c)   Any other information that the PUC may require.


          1)Requires real property owners, as specified, to call a  
            regional call center when excavating on their property and  
            using any tools other than hand tools, regardless of whether  
            the work being performed requires a permit.  Provides that a  
            person complying with the notification provisions is not  
            relieved of his or her duty to perform any excavation with  
            reasonable care to prevent damage to subsurface installations.  
             


          2)Makes numerous findings and declarations regarding the  
            efficiency of regional notification centers, including among  
            others, more effective methods of coordination and  
            communication to increase safety, timely responses to request  
            for field markings, and better coordination with the  
            Department of Transportation (Caltrans).


           3) Revises definitions of terms used regarding excavation and  
             subsurface installation. 


           4) Titles this bill the "Dig Safe Act of 2016."


           5) Adds an exemption to the definition of excavation for  
             removal of sediment in a flood control facility operated by a  
             city, county, or flood control district.


           6) Sunsets all exemptions to the definition of excavation on  
             January 1, 2020.







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           7) Clarifies that an excavator and operator may mutually agree  
             to a different notice and start date for an excavation.


           8) Provides that liquidated damages, liability, losses, costs,  
             and expenses may be awarded to an excavator for an operator's  
             non-compliance only if the operator did not have a reasonable  
             basis for the non-compliance.


           9) Clarifies that a homeowner, when using the 8-1-1 service,  
             may use the 8-1-1 service at any time in advance of an  
             excavation, but should do so at least two working days before  
             beginning the excavation.


           10)Clarifies that the PUC may not use training funds to fulfill  
             existing requirements or fund ongoing operations.


           11)Adds sewer lateral language for residential and  
             non-residential buildings into the Health and Safety Code  
             that requires indication of the location of the sewers. 


           12)Rewrites Caltrans-related findings and declarations and  
             states that Caltrans actively communicate with excavators  
             where infrastructure is located. 


           13)Strikes redundant sentences regarding remarking and  
             redelineation.


           14)States that hand tools need to be used around facilities in  
             conflict with the excavation within the tolerance zone  
             (similar to current law), and requires the Advisory Committee  
             to clarify best practices for extra hand digging beyond the  
             depth of excavation and beyond the identification of the  
             facility, as specified.









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           15)States that, in developing standards for using tracer wire  
             in sewer laterals and other drain lines, a lateral is  
             something that flows either into the public right-of-way or  
             into a utility easement.


           16)Includes the two one-call centers - one from the north and  
             one from the south - instead of just one as nonvoting ex  
             officio members of the Advisory Committee.


           17)Exempts gas utility notification of schools and hospitals  
             three days before excavation when that excavation is being  
             performed to locate and mark a line within two working days.


          Background


          Excavation Safety: A Reoccurring Issue.  It is difficult to  
          determine the scope of the problem from a collection of tragic  
          anecdotes, but California has recently had a number of near-miss  
          incidents, the following of which are a sampling that have  
          attracted media attention: 
          
           On November 6, 2011, PG&E was conducting a water pressure test  
            on the gas pipeline that had exploded a year earlier, south of  
            the San Bruno explosion site in nearby Woodside.  The pipe  
            ruptured, causing a mudslide that shut down I-280 for four  
            hours.  A dent was found at the point of rupture, caused by an  
            unknown, unreported excavation accident.

           On June 28, 2012, power pole work in San Joaquin County caused  
            the severing of an underground fiber optic cable, resulting in  
            a 911 outage as well as internet, land line, and cellular  
            service disruption in Amador County.  Full system function  
            wasn't restored for more than 24 hours.

           On August 2, 2012, an excavator clipped a gas line with a  
            backhoe at the same intersection which had erupted in the  
            September 2010 explosion in San Bruno, prompting evacuations.   
            The contractor had failed to use proper excavation techniques.

           On March 12, 2013, a Berkeley homeowner hired a day laborer to  







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            do sewer work, who hit the gas line with a pick, igniting the  
            gas and burning the front of a home and a van parked outside.   
            No call was made to have gas lines marked.

           On March 15, 2013, a subcontractor punctured a steel pipe in  
            Fresno, causing the evacuation of over 300 homes and  
            businesses.  Excavation was faulty for numerous reasons.

           On April 24, 2013, a pavement recycling vehicle hit a 3-inch  
            natural gas line in Bakersfield, causing an explosion that  
            engulfed the vehicle in flames.  No one was injured.  The  
            excavator appeared to follow applicable laws and protocols,  
            but the gas line was much closer to the road surface than  
            expected.  The pipeline operator maintains that hand-digging  
            was required to locate the pipe depth.

           On October 24, 2014, a farmer who was ripping a field  
            southwest of Bakersfield struck one of PG&E's backbone  
            transmission lines causing the fire department to create an  
            eight-square-mile "exclusion zone" that temporarily closed  
            schools and required sheltering-in-place.

           On November 13, 2015, an agricultural contractor hit one of  
            PG&E's two main transmission lines that run from the Arizona  
            border into its Bakersfield service territory. The operator of  
            the heavy machinery was killed, and two people nearby suffered  
            serious burns.

          PG&E has also reported that its underground facilities were  
          struck 1,878 times in 2014, or just over five per day.  

          Between 2011 and 2013, CSLB received 13 complaints from  
          operators.  However, in 2014, they received 100 complaints.

          Regional Notification Centers.  Current law requires an  
          individual or entity wishing to perform an excavation and dig,  
          drill, or bore below the ground to inform the regional  
          notification center of a planned excavation to ensure that  
          owners of underground facilities in the area can mark their  
          facilities and prevent excavators from damaging their property.   
          Regional notification centers in California include the  
          Underground Service Alert - Northern California, and the  
          Underground Service Alert - Southern California. 








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          CSLB describes a regional notification center as "an association  
          of owners and operators of subsurface installations (water, gas,  
          electric, telephone, sewer, oil lines, etc.).  Damage to  
          underground structures may result in the disruption of essential  
          services and pose a threat to workers, the public and  
          environmental safety.  The purpose of the center is to provide a  
          single telephone number that excavators can use to give the  
          center's members advance notification of their intent to  
          excavate.  The operators of the underground installations are  
          then responsible for providing information about the locations  
          of the facility, or marking or staking the approximate location  
          of their facility, or advising the excavator of clearance.  The  
          operators are only responsible for any facility they own." 

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          According to the Senate Appropriations Committee, this bill will  
          result in: 1) unknown penalty revenues, in the millions  
          annually, from the General Fund to the Safe Energy  
          Infrastructure and Excavation Fund, 2) initial costs of  
          approximately $2.4 million, with ongoing costs of approximately  
          $2.1 million to fund the Advisory Committee, 3) costs of  
          approximately $190,000 initially, and $175,000 annually ongoing  
          for CSLB staff time to administer disciplinary actions of the  
          Advisory Committee, and 4) one-time costs in the range of  
          $110,000 to $190,000 for the Building Standards Commission staff  
          to develop and adopt non-residential building standards for the  
          installation of tracer wire or tape for nonpressurized sewers.   
          Also, the Senate Appropriations Committee mentions minor and  
          absorbable costs for the Fire Marshal and PUC.


          SUPPORT:   (Verified1/22/16)


          Associated General Contractors
          AT&T
          California Council of Laborers
          California Labor Federation
          California Landscape Contractors Association
          California Legislative Conference on the Plumbing, Heating, and  
          Piping Industry
          National Electrical Contractors Association







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          Southern California Contractors Association
          Underground Service Alert of Southern California
          United Contractors 
          Western Line Constructors Chapter, Inc.


          OPPOSITION:   (Verified1/22/16)


          None received

          ARGUMENTS IN SUPPORT:  Proponents of this bill underscore that  
          "in order for an excavation safety program to work properly,  
          contractors and facility owners must be active participants and  
          equally accountable for safe excavation practices around  
          underground facilities.  Contractors must notify the One Call  
          Centers of their intent to excavate, when required, and the  
          facility operators must mark their facilities correctly and in a  
          timely manner. Therefore, we feel that the following provisions,  
          taken together and not separately, are vital to promoting safe  
          excavation in California."



          Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-1868
          1/25/16 16:16:49


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