1-1     By:  Alexander (Senate Sponsor - Fraser)              H.B. No. 1898

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 1997, read first time and referred to Committee on

 1-4     International Relations, Trade, and Technology; May 15, 1997,

 1-5     reported favorably by the following vote:  Yeas 5, Nays 0;

 1-6     May 15, 1997, sent to printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the relocation of utilities by the Texas Department of

1-10     Transportation essential to the timely completion of a state

1-11     highway improvement project.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Sections 203.092(a) and (b), Transportation Code,

1-14     are amended to read as follows:

1-15           (a)  A utility shall make a relocation of a utility facility

1-16     at the expense of this state if:

1-17                 (1)  relocation of the utility facility is required by

1-18     improvement of a highway in this state established by appropriate

1-19     authority as part of the National System of Interstate and Defense

1-20     Highways[;] and

1-21                 [(2)]  the relocation is eligible for federal

1-22     participation; or

1-23                 (2)  relocation of the utility facility is required by

1-24     improvement of any segment of the state highway system and the

1-25     utility has a compensable property interest in the land occupied by

1-26     the facility to be relocated.

1-27           (b)  By agreement with the utility the department may

1-28     relocate the utility facility in accordance with this section

1-29     [subchapter].

1-30           SECTION 2.  Subchapter E, Chapter 203, Transportation Code,

1-31     is amended by adding Section 203.0921 to read as follows:

1-32           Sec. 203.0921.  DEPARTMENT RELOCATION OF UTILITY FACILITIES

1-33     FOR ESSENTIAL HIGHWAY IMPROVEMENT.  (a)  At the discretion of the

1-34     department, the department may cause a utility to relocate a

1-35     utility facility, or make a relocation of a utility facility, not

1-36     eligible for reimbursement under Section 203.092 at the expense of

1-37     the state upon a finding of the commission that:

1-38                 (1)  relocation of the utility facility is essential to

1-39     the timely completion of a state highway improvement project;

1-40                 (2)  continuous service to utility customers is

1-41     essential to the public well-being or the local economy;

1-42                 (3)  a short-term financial condition would prevent a

1-43     utility from being able to pay the cost of relocation in full or in

1-44     part at the time of relocation or, if paid at that time, would

1-45     adversely affect the utility's ability to operate or provide

1-46     essential services to its customers; and

1-47                 (4)  the affected utility has been contacted by the

1-48     department and such utility and the department have reached an

1-49     agreement that:

1-50                       (A)  appropriate safeguards are in place to

1-51     ensure that relocation work activities are conducted safely in full

1-52     compliance with applicable law and utility construction standards;

1-53                       (B)  relocation work can be coordinated between

1-54     the department and the utility in a manner that will ensure that

1-55     any disruption of utility service is minimized;

1-56                       (C)  the contractor, and any subcontractors,

1-57     selected for relocation work activities are qualified to perform

1-58     such work activities; and

1-59                       (D)  there exists a factual basis for the

1-60     commission findings required under Subdivision (3).

1-61           (b)  A utility whose facilities are relocated under

1-62     Subsection (a) shall reimburse the department for any amount

1-63     expended or advanced by the department for the relocation.  The

1-64     utility shall enter into an agreement with the department providing

 2-1     for reimbursement.  The agreement shall:

 2-2                 (1)  require reimbursement of the amount expended plus

 2-3     interest to the department within five years from the date of

 2-4     completion of the work;

 2-5                 (2)  provide for reimbursement by a lump-sum payment or

 2-6     by installments;

 2-7                 (3)  require payment of interest at a rate of six

 2-8     percent per annum from the date of completion through the date of

 2-9     final payment; and

2-10                 (4)  contain other terms and conditions as may be

2-11     mutually agreed upon by the department and the utility.

2-12           (c)  In the absence of an agreement required by Subsection

2-13     (b), a utility shall reimburse the department the full cost of

2-14     relocation within 30 days of the date of completion of the work.

2-15           (d)  All funds received by the department under this section

2-16     shall be deposited in the state treasury to the credit of the state

2-17     highway fund.

2-18           SECTION 3.  Section 203.093(a), Transportation Code, is

2-19     amended to read as follows:

2-20           (a)  Reimbursement of the cost of relocation of the utility

2-21     facility, as required by Section 203.092, may [shall] be made from

2-22     the state highway fund to the utility owning the facility.

2-23           SECTION 4.  Subchapter E, Chapter 203, Transportation Code,

2-24     is amended by adding Section 203.0941 to read as follows:

2-25           Sec. 203.0941.  UTILITY RELOCATION ELIGIBLE FOR FINANCIAL

2-26     ASSISTANCE FROM WATER DEVELOPMENT BOARD.  (a)  The relocation of a

2-27     utility facility required by improvement of any segment of the

2-28     state highway system, for which a political subdivision receives

2-29     financial assistance made available from either Subchapter D, F, G,

2-30     or K, Chapter 17, Water Code, is not subject to the requirements of

2-31     Sections 17.183(1)-(6), Water Code, if the political subdivision

2-32     has agreed to allow the department to contract for the construction

2-33     of the utility facility relocation.

2-34           (b)  The department and the Texas Water Development Board may

2-35     enter into a memorandum of understanding to facilitate

2-36     administration of utility facility relocation that is required by

2-37     state highway system improvement and that receives financial

2-38     assistance from the Texas Water Development Board.

2-39           SECTION 5.  The importance of this legislation and the

2-40     crowded condition of the calendars in both houses create an

2-41     emergency and an imperative public necessity that the

2-42     constitutional rule requiring bills to be read on three several

2-43     days in each house be suspended, and this rule is hereby suspended,

2-44     and that this Act take effect and be in force from and after its

2-45     passage, and it is so enacted.

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