                                 CODE OF VIRGINIA

COMMISSION TO IMPOSE CIVIL PENALTIES FOR CERTAIN VIOLATIONS; ESTABLISHMENT OF
UNDERGROUND UTILITY DAMAGE PREVENTION SPECIAL FUND (§ 56-265.32)

A. The Commission may, by judgment entered after a hearing on notice duly served
on any person not less than 30 days before the date of the hearing, impose a
civil penalty not exceeding $10,000 for each violation of subsection A of &#xA7;
56-265.17 and $5,000 for all other violations of this chapter, if it is proved
that the person violated any of the provisions of this chapter as a result of a
failure to exercise reasonable care. Any proceeding or civil penalty undertaken
pursuant to this section shall not prevent nor preempt the right of any party to
obtain civil damages for personal injury or property damage in private causes of
action. This subsection shall not authorize the Commission to impose civil
penalties on any county, city, town, or other political subdivision. However,
the Commission shall inform the counties, cities, towns, and other political
subdivisions of reports of alleged violations involving the locality or
political subdivision and, at the request of the locality or political
subdivision, suggest corrective action.

B. If the Commission asserts there is recurring noncompliance with any of the
provisions of this chapter by a county, city, town, or other political
subdivision, the Commission, upon written notice to the chairman of such
operator&#8217;s board or, in the case of a city or town, the mayor of such
operator&#8217;s council, and to such operator&#8217;s chief executive officer,
may require a written response by such person or his designee. Such response
shall be made within 30 days of the operator&#8217;s receipt of written notice
from the Commission. The response shall confirm that the operator will comply
promptly or explain why it disputes any assertion by the Commission of
noncompliance. If the operator is not able to return to compliance promptly, the
operator shall describe its plan to achieve compliance in a corrective action
plan to be submitted to the Commission no later than 60 days after the receipt
of the written notice. Following submittal of a corrective action plan, the
Commission may convene a hearing for the purpose of receiving additional
evidence, determining whether noncompliance has occurred, and determining
further suggested corrective action. The Commission may also convene such a
hearing if the operator fails to provide a written response or a corrective
action plan as required by this subsection, or provides a response that disputes
the Commission&#8217;s assertions. Nothing in this section shall limit the
Commission&#8217;s powers under this chapter with respect to persons who are not
counties, cities, towns, or political subdivisions of the Commonwealth.

C. The Underground Utility Damage Prevention Special Fund (hereinafter referred
to as Special Fund) is hereby established as a revolving fund to be used by the
Commission for administering the regulatory program authorized by this chapter.
The Special Fund shall be composed entirely of funds generated by and for the
enforcement of this chapter. Enforcement of this chapter also includes education
and outreach provided by the Commission for training and educational programs
for excavators, operators, utility line locators, and other persons. Excess
funds shall be used to support any one or more of the following: (i) public
awareness programs established by a notification center pursuant to subsection B
of &#xA7; 56-265.16:1; (ii) training and education programs for excavators,
operators, line locators, and other persons; and (iii) programs providing
incentives for excavators, operators, line locators, and other persons to reduce
the number and severity of violations of the Act. The Commission shall determine
the appropriate allocation of any excess funds among such programs, and shall
establish required elements for any program established under clause (ii) or
(iii).

D. All civil penalties collected pursuant to this section shall be deposited
into the Underground Utility Damage Prevention Special Fund. Interest earned on
the fund shall be credited to the Special Fund. The Special Fund shall be
established on the books of the Commission comptroller and any funds remaining
in the Underground Utility Damage Prevention Special Fund at the end of the
fiscal year shall not revert to the general fund, but shall remain in the
Special Fund.

HISTORY: 1994, c. 890; 2001, c. 351; 2002, c. 348; 2010, c. 205; 2023, cc. 299,
300.