HB299 Alabama 2023 Session

Summary

Primary Sponsor

Van SmithRepresentative

Republican

Session

Regular Session 2023

Title

Relating to highways; to amend Section 23-1-5, Code of Alabama 1975, to further provide for the relocation of utilities; and to further provide for the reimbursement process for various expenses associated with the relocation.

Summary

The bill lets the DOT order utilities in the state right-of-way to relocate for highway projects and sets how relocation costs are paid, including possible federal reimbursement and income-based exceptions.

What This Bill Does

It authorizes the Director of Transportation to require utilities located in the state right-of-way to relocate for highway projects, including interstate work. It establishes how relocation costs can be reimbursed, with federal reimbursement possible and the utility potentially repaying differences after federal audits; there is also an income-based rule that can prevent the state from paying certain relocation costs. The bill allows the Director to contract with utilities to carry out relocations and defines what counts as relocation costs and who is a utility. It also clarifies the effective date when the bill becomes law.

Who It Affects

• Utilities that own or operate facilities within the state right-of-way: must relocate when ordered, may be reimbursed for relocation costs, and may owe repayment after federal audits depending on cost and income thresholds.
• The Alabama Department of Transportation and the State: responsible for issuing relocation orders, budgeting and paying relocation costs as part of highway projects, and contracting with utilities to carry out relocations.

Key Provisions

• Authorizes the Director of Transportation to order relocation of utilities located within the state right-of-way when highway or interstate projects require it.
• For eligible relocations with federal reimbursement, the state pays relocation costs as part of the project; the utility must provide verified cost information; after the federal audit, the utility may repay any difference between state payments and federal participation.
• For non-interstate highways, the utility normally relocates at its own expense, but the costs can be reimbursed by the state as part of the project; a threshold based on the utility's gross income (around $250 million) may prohibit state payment, with post-audit repayment required if applicable.
• Director of Transportation may contract with utilities or adjust existing contracts to implement relocation.
• Definitions include: 'utility' (public, private, or cooperative); 'costs of relocation' (total relocation cost attributable to the relocation area exceeding half a mile, minus salvage value and any gain in value of the new facility).
• Effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Highways; relocation of utility facilities by order of Director of Transportation, further provided