SB 0920 - Fiscal Note

Fiscal Note - SB 0920 - Revises underground facility safety notification requirements

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3823-01

BILL NO. SB 920

SUBJECT: County Officials: Utilities, Underground Facilities

TYPE: Revised

DATE: March 31, 1998

#Revised due to change in policy by Oversight Subcommittee on March 30, 1998 regarding Article X, Section 21.

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	(Unknown)	(Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Department of Economic Development - Public Service Commission and the Missouri Department of Conservation assumes no fiscal impact.

Officials of the Department of Natural Resources (DNR) stated this proposal assigns the responsibility to designers to show where underground facilities are located. Currently, the department obtains this information by contacting a notification center. If the department is aware of other underground facilities located on the property, we have provided this information. If prior to 1/1/2000, this legislation requires the department to conduct further research, the department may incur additional costs.

It should be noted that for projects which the DNR provides oversight (i.e. installation of environmental control facilities, environmental cleanup activities, etc.) the DNR would not be responsible for performing the underground facility notification or identification activities.

Officials of the Missouri Department of Transportation (DOT) assume this proposal would require location utility information to be on construction plans and specifications. The DOT assumes the proposal also requires the DOT to respond to requests for location and marking of utility facilities on a right or way. Because of the vague nature of some of the provisions in the bill, the costs to implement this proposal cannot be determined.

Oversight assumes this proposal does not make any additional requirements of the DOT that they are not currently meeting with existing resources. Therefore, Oversight assumes there would be no significant fiscal impact on the DOT.

Local Government

The City Administrator of the City of Mexico assumes no significant fiscal impact.

Officials of the City of St. Louis assumes that the requirements of section 319.024, to maintain city supervision during excavations would require at least three new FTE. Currently, the City provides personnel before the excavation to locate underground facilities. City personnel do not remain on-site once excavation begins. However, they do check-in occasionally depending on workloads. City officials did not submit an estimate of costs, but stated that costs would be in excess of $100,000 annually.

ASSUMPTION (continued)

Oversight assumes the proposal would expand the current requirement that the city assist excavators in determining the location of underground facilities before excavation to include assistance during excavation. Oversight assumes the City's current practice of checking on excavators would be sufficient. Accordingly, Oversight assumes no new staff would be required.

The Boone County Recorder of Deeds stated that this proposal would decrease the administrative functions currently required. However, the county would also experience a reduction in fees currently collected from businesses with underground facilities. Officials conclude that the trade-off of reduced administrative duties verses the loss of fees would result in $0 fiscal impact.

Oversight assumes local governments who own certain underground facilities who do not currently participate in a statewide notification center may incur additional costs. Also, local governments who do not participate in a statewide notification center would not be able to recover damages resulting from excavation. The possible losses and increased costs to local governments is unknown.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
CITIES AND COUNTIES
Costs - participation in notification center	$0	(Unknown)	(Unknown)
Loss - uncollectible damages	$0	(Unknown)	(Unknown)
	$0	(Unknown)	(Unknown)

FISCAL IMPACT - Small Business

This proposal may impact small businesses who own underground facilities by requiring participation in a statewide notification center and limiting the damages that can be recovered.

DESCRIPTION

This act revises requirements pertaining to underground facility safety. All owners and operators of underground facilities shall participate in a statewide notification center, effective January 1, 2000. Notification centers shall maintain a current list of participating owners and operators.

The act removes the requirement that owners and operators of underground facilities not participating in a notification center shall register with the county Recorder of Deeds. The act removes the requirement that the Recorder of Deeds maintain a current list of owners and operators.

Notification shall be provided to the notification center prior to excavation. Currently, notification is required prior to excavation or construction, whichever occurs first. Prior to January 1, 2000, notice shall also be given prior to excavation to owners and operators of underground facilities not participating in an notification center.

Owners and operators shall assist in determining the location of underground facilities prior to and during excavation. The act provides requirements for an owner or operator of underground facilities to provide the location of facilities to an excavator or the notification center upon receiving notice prior to excavation.

The marking of underground facilities shall be valid so long as the markings are visible. If an excavator notifies the notification center that the markings are no longer visible, the owner or operator shall remark the facilities.

The act prohibits recovery of damages resulting from an excavation by the owner or operator of an underground facility failing to participate in a notification center after January 1, 2000.

Any person designing a building, bridge, highway, or other improvement involving excavation shall obtain information concerning underground facilities and provide such information to the excavator.

The act specifies those emergency situations in which excavation is allowed without regard to notification requirements. Emergency excavation is allowed for unexpected occurrences, including fires, floods, sabotage, and riots.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development-Public Service Commission

Missouri Department of Conservation

Department of Natural Resources

Department of Transportation

Department of Public Safety

Director of Administration-St. Louis County

Jeanne Jarrett, CPA

Director

March 31, 1998