TWT H.B. 1898 75(R)BILL ANALYSIS TRANSPORTATION H.B. 1898 By: Alexander 4-5-97 Committee Report (Substituted) BACKGROUND Most highway improvement projects undertaken by the Texas Department of Transportation (TXDOT) require the relocation of utilities in conjunction with the project. This relocation of utilities may involve simply the moving of one or more utilities at a highway intersection or it may involve the significant relocation of several thousand feet of a utility's pipeline. Most TXDOT highway improvement projects require that participating local governments pay for a portion of all of the utility adjustment costs on any given project. Depending on the specific circumstances involved, the cost to the local government could be significant. In addition, the very nature of most highway improvement projects require that utilities be relocated prior to the time that construction begins. The inability of local governments to raise the funds needed to relocate utilities has limited the TXDOT's ability to address needed highway improvements. PURPOSE C.S.H.B. 1898 will allow the Texas Department of Transportation (TXDOT) to relocate utility facilities as part of a highway improvement project and will require the utility to reimburse the TXDOT for the cost of the relocation within five years of the project being completed. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority to the Texas Department of Transportation in Section 2 in Sec. 203.0921(a). SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 203.092 (a) and (b), Transportation Code, as follows. (a)(2) Allows a utility to make a relocation of a utility facility at the expense of this state if the relocation is required to improve any segment of a state highway system and the utility has a compensable property interest. (b) Substitutes the word "section" for "subchapter". SECTION 2. Amends Subchapter E, Chapter 203, Transportation Code, by adding Sec. 203.0921. (a) At the discretion of the the TXDOT, the TXDOT can cause or make a utility relocate a utility facility at the expense of the state if the transportation commission finds: (1) relocating the utility is essential to completing the project in a timely manner; (2) it is essential to the public and the local economy will benefit if customers have continuous utility service; and (3) short-term financial condition prevents a utility from paying for the relocation in full or in part at the time of relocation, or if paying at that time would have an adverse affect on the utility's operations or services. (4) the affected utility has been contacted and has reached an agreement with the TXDOT that: (A) safeguards are in place to ensure relocation work is done safely and in compliance with applicable laws and utility construction standards; (B) in order to minimize disruption of utility service, relocation work be coordinated between the TXDOT and the utility; (C) selected contractors and subcontractors be qualified to perform these activities; and (D) a factual basis of short-term financial conditions in Subdivision (3) exist. (b) Requires a utility whose facilities are relocated under (a) to reimburse the TXDOT the any amount expended or advanced by the TXDOT for the relocation. An agreement on reimbursement must: (1) require reimbursement of the amount plus interest within five years after work completion; (2) provide for lump sum reimbursement or by installments. (3) require a six percent interest rate; and (4) contain other mutually agreed upon terms and conditions. (c) In the absence of an agreement required in (b), the utility would be required to reimburse the TXDOT within 30 days of the completion of the work. (d) Requires all funds received by the TXDOT under this section be deposited in the state highway fund. SECTION 3. Amends Sec. 203.093(a), Transportation Code, by making reimbursements from the state highway fund for the cost of utility relocation, as required by Sec. 203.092, permissive rather than mandatory. SECTION 4. Amends Subchapter E, Chapter 203, Transportation Code, by adding Sec. 203.0941. (a) Exempts certain utility relocation projects from requirements of Section 17.183 (1) - (6), Water Code, if the political subdivision receiving funds from the Texas Water Development Board (TWDB) has agreed to allow the TXDOT to contract for the construction of the utility facility relocation. (b) The TXDOT and the TWDB may enter into a memorandum of understanding to facilitate administration of utility facility relocation required by improvements to the state highway system and which receives financial assistance from the TWDB. SECTION 5. Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1. The substitute, in Sec. 203.092(a)(2), puts the words "by the facility to be relocated" in place of the words "by the relocated facility" from the original. The original moved Sec. 203.092(d) to Section 4 of H.B. 1898 (Sec. 203.0931). The substitute retains current law. SECTION 2. The substitute adds language in Sec. 203.0921(a) that the relocation is at the discretion of the TXDOT. This allows both utilities or the TXDOT to perform relocations rather than requiring just the TXDOT to perform relocations. The substitute adds new Subdivision (4) to Subsection (a) to set forth the conditions for an agreement between affected utilities and the TXDOT. In Subsection (b), the substitute requires the utility to reimburse the TXDOT for "any amount expended or advanced by the department for the relocation" while the original required reimbursement for "the cost of relocation." The substitute adds new Subsection (d) requiring all funds received by the TXDOT under this section to be deposited in the state highway fund. SECTION 4. The original created new Sec. 203.0931, regarding the cost of relocation, out of Sec. 203.092 (d) of current law. The substitute retains 203.092(d), but adds a new Sec. 203.0941 which deals with utility relocations which are eligible for financial assistance from the TWDB.