SB287 Alabama 2010 Session

Summary

Primary Sponsor

Wendell Mitchell

Democrat

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

This bill raises the income-eligibility threshold for reimbursing utility relocation costs on non-interstate highways from $200 million to $250 million and outlines how reimbursements, repayments, and cost definitions would work.

What This Bill Does

It changes how relocation costs for utility facilities caused by non-interstate highway construction may be reimbursed by the state, allowing eligibility for utilities with a gross income of $250 million or less in the prior year (or in the first complete year for newly organized utilities). If eligible and approved by the federal government, the state funds the relocation as part of highway construction, with the utility later repaying any difference after the federal audit. Utilities with higher income would not receive state reimbursement under this provision, and the overall cost of relocation is defined to include what the utility pays minus any increase in value of the new facility and salvage value of the old facility.

Who It Affects

• Utilities (public, private, and cooperative) that own or operate facilities to be relocated because of highway construction not on the national interstate system, particularly those with gross income of $250,000,000 or less in the relevant year.
• Alabama Department of Transportation and the state government, which would administer reimbursements, coordinate with federal funds, and handle repayments after federal audits.

Key Provisions

• Amends Section 23-1-5 to raise the reimbursement-eligibility gross income cap for non-interstate highway relocations from $200,000,000 to $250,000,000.
• Allows eligible relocation costs to be reimbursed by the state as part of highway construction if approved by the federal government; the state funds the relocation and the utility must repay any difference after the final federal audit, including the federal participation and the state's matching share.
• Extends eligibility to newly organized utilities with gross incomes of $250,000,000 or less in their first complete year or in the calendar year immediately preceding relocation.
• Defines the scope and calculation of 'cost of relocation' to include the total amount paid by the utility attributable to relocation, minus increases in the value of the new facility and plus minus salvage value of the old facility; includes all types of utilities (public, private, cooperative).
• Authorizes the Director of Transportation to enter contracts or agreements to implement these provisions and clarifies that the act takes effect on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Transportation Department