HB305 Alabama 2010 Session

Summary

Primary Sponsor

Terry Spicer

Democrat

Co-Sponsor

Alan Boothe

Session

Regular Session 2010

Title

Transportation Department, utility relocation expenses related to highways not part of national interstate or defense highways, gross income of utilities eligible for reimbursement increased, Sec. 23-1-5 am'd.

Summary

HB305 changes how Alabama pays for utility relocations related to highway construction by expanding eligibility for state reimbursements on non-interstate projects and clarifying definitions of utilities and relocation costs.

What This Bill Does

For interstate highway projects, the state may reimburse relocation costs if federal reimbursement is available, with any difference reconciled after federal audit. For non-interstate projects, relocation is generally at the utility's expense, but utilities with gross income within certain ranges (roughly $200 million to $250 million, or less, in the preceding year or first year of operation for new utilities, or certain corporate structures) can have the state pay the relocation costs as part of construction, with repayment after the federal audit. The Act also allows the Transportation Director to contract with utilities and defines key terms like 'utility' and 'cost of relocation.'

Who It Affects

• Utilities owning or operating utility facilities that are affected by highway construction; their relocation costs and eligibility for state reimbursement change depending on whether the project is on the interstate system or not and on the utility's gross income and corporate structure.
• Alabama Department of Transportation and the state's funding/audit processes; they manage reimbursements, track federal participation, require documentation, and handle repayments after audits.

Key Provisions

• Interstate projects: relocation costs may be paid by the state as part of construction costs if eligible for federal reimbursement, with repayment by the utility after the final federal audit for any difference.
• Non-interstate projects: relocation costs are generally the utility's responsibility, but the state will pay for eligible utilities with gross income in specified ranges (e.g., $200M–$250M or less in the preceding year or first year of operation for new utilities, or certain corporate structures) as part of construction, with repayment after the federal audit of any difference.
• The Director of Transportation may contract with utilities to implement the section and align existing contracts.
• Definitions: 'utility' includes public, private, and cooperative utilities; each wholly owned subsidiary is treated as a separate utility; 'cost of relocation' includes all amounts paid by the utility attributable to relocation minus increases in value of the new facility and salvage value of the old facility; 'national system of interstate and defense highways' refers to the national interstate system.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Transportation Department