GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 2 HOUSE BILL 247 Committee Substitute Favorable 3/19/25 Short Title: 8-1-1 Amendments. (Public) Sponsors: Referred to: March 3, 2025 *H247 -v-2* A BILL TO BE ENTITLED 1 AN ACT TO UPDATE THE UNDERGROUND UTILITY SAFETY AND DAMAGE 2 PREVENTION ACT. 3 The General Assembly of North Carolina enacts: 4 SECTION 1. G.S. 87-121 reads as rewritten: 5 "§ 87-121. Facility operator responsibilities. 6 (a) An operator shall provide to the excavator the following: 7 (1) The horizontal location and description of all of the operator's facilities in the 8 area where the proposed excavation or demolition is to occur. The location 9 shall be marked by stakes, soluble paint, flags, or any combination thereof, as 10 appropriate, depending upon the conditions in the area of the proposed 11 excavation or demolition. The operator shall, when marking as provided under 12 this subdivision, use the APWA Uniform Color Code. Where practical, 13 painted surface marks shall be of adequate length to distinguish from dots. If 14 the diameter or width of the facility is greater than four inches, the dimension 15 of the facility shall be indicated at least every 50 feet in the area of the 16 proposed excavation or demolition. An operator who operates multiple 17 facilities in the area of the proposed excavation or demolition shall locate each 18 facility. 19 (1a) The operator's identity, marked as provided in subdivision (1) of this 20 subsection, in the area where the proposed excavation or demolition is to 21 occur. At a minimum, the operator's identity shall be marked at the beginning 22 point, at intervals of 200 linear feet, and at the end point of the proposed 23 excavation or demolition. 24 (2) Any other information that would assist the excavator in identifying and 25 thereby avoiding damage to the marked facilities. 26 (b) Unless otherwise provided in a written agreement between the operator and the 27 excavator, including an electronically transmitted written agreement, the operator shall provide 28 to the excavator the information required by subsection (a) of this section within the times 29 provided below: 30 (1) For a facility, within three full working days after the day notice of the 31 proposed excavation or demolition was provided to the Notification 32 Center.prior to the work start date provided by the excavator. 33 (2) For a subaqueous facility, within 10 full working days after the day notice of 34 the proposed excavation or demolition was provided to the Notification 35 Center. 36 General Assembly Of North Carolina Session 2025 Page 2 House Bill 247-Second Edition (3) If the operator declares an extraordinary circumstance, the times provided in 1 this subsection shall not apply. 2 (4) For an emergency request, the operator shall make an initial contact with the 3 excavator within three hours. 4 (5) For a request of an unmarked facility required by G.S. 87-122(c)(6), the 5 operator shall arrange to mark the facility within three hours from the time the 6 additional notice is received by the Notification Center. 7 …." 8 SECTION 2. G.S. 87-122 reads as rewritten: 9 "§ 87-122. Excavator responsibilities. 10 (a) Before commencing any excavation or demolition operation, the person responsible 11 for the excavation or demolition shall provide or cause to be provided notice to the Notification 12 Center of his or her intent to excavate or demolish. Notice for any excavation or demolition that 13 does not involve a subaqueous facility must be given within three to 12 full working days before 14 the proposed commencement date of the excavation or demolition. not less than three full 15 working days prior to the proposed commencement date of the excavation or demolition. Notice 16 for any excavation or demolition in the vicinity of a subaqueous facility must be given within 10 17 to 20 full working days before the proposed commencement date of the excavation or demolition. 18 Notice given pursuant to this subsection shall expire 15 full working days 28 calendar days after 19 the date notice was given. No excavation or demolition may continue after this 15-day period 20 28-day period unless the person responsible for the excavation or demolition provides a 21 subsequent update notice which shall be provided in the same manner as the original notice 22 required by this subsection. When demolition of a building is proposed, the operator shall be 23 given a reasonable time in which to remove or protect the operator's facilities before the 24 demolition commences. 25 (b) The notice required by subsection (a) of this section shall, at a minimum, contain all 26 of the following: 27 (1) The name, address, and telephone number of the person providing the notice. 28 (2) The anticipated starting date of the proposed excavation or demolition. 29 (3) The anticipated duration of the proposed excavation or demolition. 30 (4) The type of proposed excavation or demolition operation to be conducted. 31 (5) The location of the proposed excavation or demolition by one of the 32 following:The area of locate of the proposed excavation or demolition, which 33 shall be limited to an area the excavator reasonably believes may be completed 34 within 28 calendar days from the work start date and does not include any 35 areas where the excavation or demolition has been completed and accepted by 36 the authorities having jurisdiction. The area of locate is also limited to one of 37 the following: 38 a. A single parcel that may exceed 1/4 mile in linear length identified by 39 a single address. 40 b. The lesser of five adjoining parcels identified by addresses, not to 41 exceed 1/4 mile in linear length or an area not to exceed 1/4 mile in 42 linear length. 43 (6) Whether or not explosives are to be used in the proposed excavation or 44 demolition. 45 (c) An excavator shall comply with the following: 46 … 47 (10) The excavator shall not use mechanized nonmechanized equipment within 24 48 inches a 24-inch circumference of a facility that is an oil, petroleum products, 49 or highly volatile liquid pipeline system, a gas transmission line, or an electric 50 transmission line unless the facility operator has consented to the use in 51 General Assembly Of North Carolina Session 2025 House Bill 247-Second Edition Page 3 writing and the operator's representative is on site during the use of the 1 mechanized equipment. Within the tolerance zone of a pipeline system, the 2 excavator shall use safe excavation practices, such as hand digging or 3 potholing. For purposes of this subdivision, the term "oil, petroleum products, 4 or highly volatile liquid pipeline system" has the same meaning as the term 5 "pipeline system" in Title 49 C.F.R. § 195.2, the term "gas transmission line" 6 has the same meaning as the term "transmission line" in Title 49 C.F.R. § 7 192.3, and the term "electric transmission line" has the same meaning as the 8 term "transmission line" in G.S. 62-100(7)." 9 SECTION 3. G.S. 87-124 reads as rewritten: 10 "§ 87-124. Exemptions. 11 The notice requirements in G.S. 87-122(a) and G.S. 87-122(b) do not apply to the following: 12 (1) An excavation or demolition performed by the owner of a single-family 13 residential property on his or her own land that does not encroach on any 14 operator's right-of-way, easement, or permitted use. 15 (2) An excavation or demolition performed by the owner of a single-family 16 residential property on his or her own land that encroaches on any operator's 17 right-of-way, easement, or permitted use that is performed with 18 nonmechanized equipment. 19 (3) An excavation or demolition that involves the tilling of soil for agricultural or 20 gardening purposes.purposes that encroaches on any operator's right-of-way, 21 easement, or permitted use and is less than 12 inches in depth. 22 (4) An excavation or demolition for agricultural purposes, as defined in 23 G.S. 106-581.1, performed on property that does not encroach on any 24 operator's right-of-way, easement, or permitted use. 25 (5) An excavation by an operator or surveyor operator, surveyor, or an operator 26 or surveyor's contractor with nonmechanized equipment for the following 27 purposes: 28 a. Locating for a valid notification request or for the minor repair, 29 connection, or routine maintenance of an existing facility or survey 30 pin. 31 b. Probing underground to determine the extent of gas or water 32 migration. 33 (6) An excavation or demolition performed when those responsible for routine 34 maintenance of a right-of-way or any other governmental entity are 35 performing, with labor on their permanent payroll, maintenance activities 36 within the right-of-way. for the purpose of maintenance activities within the 37 right-of-way. Maintenance activities shall include emergency replacement of 38 signs critical for maintaining safety or reshaping of shoulders and ditches to 39 the original road profile. Maintenance activities do not include the initial 40 installation of traffic signs, traffic control equipment, guardrails, or drainage 41 structures. The provisions of this subdivision do not apply when the 42 excavation or demolition is performed by a contractor acting on behalf of a 43 person or entity responsible for routine maintenance of a right-of-way or on 44 behalf of any other governmental entity.right-of-way. 45 (7) An excavation or demolition performed by a railroad entirely on land which 46 the railroad owns or operates or, in the event of an emergency, on adjacent 47 land. No provision in this Article shall apply to any railroad which owns, 48 operates, or permits facilities under land which the railroad owns or operates. 49 (8) An excavation of a grave space, as defined in G.S. 65-48(10), the installation 50 of a monument or memorial at a grave space, or an excavation related to the 51 General Assembly Of North Carolina Session 2025 Page 4 House Bill 247-Second Edition placement of a temporary structure or tent by a cemetery regulated under 1 Chapter 65 of the General Statutes that does not encroach on any operator's 2 right-of-way, easement, or permitted use. 3 (9) Pavement milling and pavement resurfacing." 4 SECTION 4. G.S. 87-126 reads as rewritten: 5 "§ 87-126. Notification required when damage is done.done; venue. 6 (a) The excavator performing an excavation or demolition that results in any damage to 7 a facility shall immediately upon discovery of the damage notify the Notification Center and the 8 facility operator, if known, of the location and nature of the damage. The excavator shall allow 9 the operator reasonable time to accomplish necessary repairs before completing the excavation 10 or demolition in the immediate area of the facility. The excavator shall delay any backfilling in 11 the immediate area of the damaged facility until authorized by the operator. The operator or 12 qualified personnel authorized by the operator shall repair any damage to the facility. 13 (b) An excavator who is responsible for an excavation or demolition where any damage 14 to a facility results in the discharge of electricity or escape of any flammable, toxic, or corrosive 15 gas or liquid, or that endangers life, health, or property shall immediately notify emergency 16 responders, including 911 services, the Notification Center, and the facility operator. The 17 excavator shall take reasonable measures to protect himself or herself, other persons in immediate 18 danger, members of the general public, property, and the environment until the operator or 19 emergency responders arrive and complete an assessment of the situation. 20 (c) The venue for all actions arising out of physical damages to a facility or the failure of 21 a party to comply with the obligations imposed on that party by this Article shall be: 22 (1) As set forth in Article 7 of Chapter 1 of the General Statutes, where one or 23 more of the claims involve bodily injury or death. 24 (2) In the county where the facility that is the subject of the action is located, if 25 none of the claims involve bodily injury or death." 26 SECTION 5. G.S. 87-128 reads as rewritten: 27 "§ 87-128. Absence of facility location. 28 If an operator who has been given notice as provided in G.S. 87-120(d) by the Notification 29 Center fails to respond to that notice as provided in G.S. 87-121 or fails to properly locate the 30 facility, the person excavating is free to proceed with the excavation. Neither the excavator nor 31 the person financially responsible for the excavation will be liable to the nonresponding or 32 improperly responding operator for damages to the operator's facilities if the person doing the 33 excavating exercises due care to protect existing facilities when there is evidence of the existence 34 of those facilities near the proposed excavation area.so long as the excavator has exercised due 35 care in preparing for or conducting the excavation. For purposes of this section, the excavator 36 shall be entitled to a presumption, rebuttable by clear and convincing evidence, that it has 37 exercised due care in preparing for or conducting the excavation where all of the following apply: 38 (1) The Notification Center gives the operator the notice required in 39 G.S. 87-120(d). 40 (2) The operator fails to respond to that notice as provided in G.S. 87-121 or fails 41 to properly locate the facility. 42 (3) The excavator has complied with the requirements of G.S. 87-122(c). 43 (4) The excavator did not have actual knowledge of the existence of a facility 44 located within the area of the excavation to be performed." 45 SECTION 6. G.S. 87-129 reads as rewritten: 46 "§ 87-129. Underground Damage Prevention Review Board; enforcement; civil penalties. 47 (a) There is hereby established the Underground Damage Prevention Review Board to 48 review reports of alleged violations of this Article. The members of the Board shall be appointed 49 by the Governor. The Board shall consist of 15 members as follows: 50 (1) A representative from the North Carolina Department of Transportation; 51 General Assembly Of North Carolina Session 2025 House Bill 247-Second Edition Page 5 (2) A representative from a facility contract locator; 1 (3) A representative from the Notification Center; 2 (4) A representative from an electric public utility; 3 (5) A representative from the telecommunications industry; 4 (6) A representative from a natural gas utility; 5 (7) A representative from a hazardous liquid transmission pipeline company; 6 (8) A representative of a municipality, appointed on the recommendation of the 7 League of Municipalities; 8 (9) A highway contractor licensed under G.S. 87-10(b)(2) who does not own or 9 operate facilities; 10 (10) A public utilities contractor licensed under G.S. 87-10(b)(3) who does not 11 own or operate facilities; 12 (11) A surveyor licensed under Chapter 89C of the General Statutes; 13 (12) A representative from a rural water system, appointed on the recommendation 14 of the North Carolina Rural Water Association; 15 (13) A representative from an investor-owned water system; 16 (14) A representative from an electric membership corporation; and 17 (15) A representative from a cable company, appointed on the recommendation of 18 the North Carolina Cable Telecommunications Association. 19 (a1) Each member of the Board shall be appointed for a term of four years. Members of 20 the Board may serve no more than two consecutive terms. Vacancies in appointments made by 21 the Governor occurring prior to the expiration of a term shall be filled by appointment for the 22 unexpired term. To the extent practicable, the Governor shall fill any vacancy in appointment 23 within 60 days after the vacancy. 24 (a2) No member of the Board may serve on a case where there would be a conflict of 25 interest. 26 (a3) The Governor may remove any member at any time for cause. 27 (a4) Eight members A majority of the seated members of the Board shall constitute a 28 quorum. Board members may appear at meetings by simultaneous communication via conference 29 telephone or other electronic means. 30 (a5) The Governor shall designate one member of the Board as chair. 31 (a6) The Board may adopt rules to implement this Article. 32 (a7) The Board shall establish an internal attendance policy. In the event that a Board 33 member resigns or fails to meet the criteria of the attendance policy, the Board may appoint an 34 interim member to represent the same stakeholder group until such time as the Governor appoints 35 a replacement for the unexpired term. 36 (a8) On request of the Board, the Utilities Commission shall appoint a nonvoting ex officio 37 member as an administrative representative to provide counsel and coordinate efforts of the 38 Board. 39 (b) The Board shall receive reports of alleged violations of this Article. The Board shall 40 contact persons against whom reports have been filed to inform them of the alleged violation 41 within 10 days 15 working days of the filing of the report. The Board shall maintain all of the 42 following information regarding reports of alleged violations: 43 (1) The name, address, and telephone number of the person making the report; 44 (2) The nature of the report, including the statute that is alleged to have been 45 violated; 46 (3) Information provided by the person making the report, including 47 correspondence, both written and electronic, pictures, and videos; and 48 (4) Information provided by the person against whom the report has been filed, 49 including correspondence, both written and electronic, pictures, and videos. 50 General Assembly Of North Carolina Session 2025 Page 6 House Bill 247-Second Edition (b1) The Board shall review all reports of alleged violations of this Article and 1 accompanying information. If the Board determines that a person has violated any provision of 2 this Article, the Board shall determine the appropriate action or penalty to impose for each such 3 violation. Actions and penalties may include training, education, and a civil penalty not to exceed 4 two thousand five hundred dollars ($2,500). The Board shall approve training courses and the 5 sponsors of those training courses under this subsection. Any fees for training courses approved 6 by the Board shall be paid by the person determined to have violated this Article. The Board shall 7 notify within 30 days each person who is determined to have violated this Article in writing of 8 the Board's determination and the Board's recommended action or penalty. A person determined 9 to be in violation of this Article may request a hearing before the Board, after which the Board 10 may reverse or uphold its original finding. If the Board recommends a penalty, the Board shall 11 notify the Utilities Commission of the recommended penalty, and the Utilities Commission shall 12 issue an order imposing the penalty.Notwithstanding Chapter 150B of the General Statutes, a 13 person determined to be in violation of this Article may request an informal conference before 14 the Board by notifying the Board in writing within 30 days of the Board's determination. The 15 person must attend the informal conference in person. The person may be represented by an 16 attorney and may present evidence and make arguments in favor of the person's position. 17 Following the informal conference, the Board may reverse, modify, or uphold its original finding. 18 If the Board recommends a penalty, the Board shall notify the Utilities Commission of the 19 recommended penalty, and the Utilities Commission shall issue an order imposing the penalty 20 within 30 days of notification by the Board. 21 (c) A person determined by the Board under subsection (b1) of this section to have 22 violated this Article may appeal the Board's determination by initiating an arbitration proceeding 23 before the Utilities Commission within 30 days of the Board's determination. determination 24 following the informal conference. If the violating party elects to initiate an arbitration 25 proceeding, the violating party shall pay a filing fee of two hundred fifty dollars ($250.00) to the 26 Utilities Commission, and the Utilities Commission shall open a docket regarding the report. The 27 Utilities Commission shall direct the parties enter into an arbitration process. The parties shall be 28 responsible for selecting and contracting with the arbitrator. Upon completion of the arbitration 29 process, the Utilities Commission shall issue an order encompassing the outcome of the binding 30 arbitration process, including a determination of fault, a penalty, and assessing the costs of 31 arbitration to the non-prevailing party. 32 (c1) A person may timely appeal an order issued by the Utilities Commission pursuant to 33 this section to the superior court division of the General Court of Justice in the county where the 34 alleged violation of this Article occurred or in Wake County, for trial de novo within 30 days of 35 entry of the Utilities Commission's order. The authority granted to the Utilities Commission 36 within this section is limited to this section and does not grant the Utilities Commission any 37 authority that they are not otherwise granted under Chapter 62 of the General Statutes. 38 (d) The provisions of this Article do not affect any civil remedies for personal injury or 39 property damage otherwise available to any person, except as otherwise specifically provided for 40 in this Article. The penalty provisions of this Article are cumulative to and not in conflict with 41 provisions of law with respect to civil remedies for personal injury or property damage. The clear 42 proceeds of any civil penalty assessed under this section shall be used as provided in Section 7(a) 43 of Article IX of the North Carolina Constitution. In any arbitration proceeding before the Utilities 44 Commission, any actions and penalties assessed against any person for violation of this Article 45 shall include the actions and penalties set out in subsection (b1) of this section. 46 (d1) The Utilities Commission shall report to the Board by March 1 of each year the 47 compliance of persons upon whom fines or penalties have been imposed under this Article. 48 (d2) If the amount of a penalty imposed by the Utilities Commission pursuant to subsection 49 (c) of this section is not paid to the Utilities Commission within 90 days of the Utilities 50 Commission issuing the order, the Attorney General, at the request of the Utilities Commission, 51 General Assembly Of North Carolina Session 2025 House Bill 247-Second Edition Page 7 shall bring an action in the name of the State of North Carolina in the Wake County Superior 1 Court to recover the penalty. The action shall not commence until after the time has expired for 2 an appeal from the findings, conclusions, and order of the Utilities Commission. 3 (e) The Board is authorized to employ contractors or other personnel as it may deem 4 necessary to carry out the provisions of this Article. 5 (f) The Board shall maintain a record of reports of alleged violations of this Article 6 received under subsection (b) of this section for at least four years, including responses to such 7 reports. 8 (g) On request of the Board, the Attorney General's office shall assign a legal 9 representative to provide legal counsel to the Board." 10 SECTION 7. This act becomes effective September 1, 2025. 11