AB 275

This bill creates a process for a highway improvement contractor to seek

damages for project delays that are the result of an uncompleted relocation or

adjustment of a utility facility located in the right-of-way of the highway. “Utility

facility” means any pipe, pipeline, duct, wire line, conduit, pole, tower, equipment,

or other structure used for transmission, distribution, or delivery of electrical power,

light, heat, water, gas, sewer, telegraph, or telecommunication services.

Under current law, if a utility facility is within the right-of-way of a proposed

highway project, the Department of Transportation must notify the owner, who must

then provide DOT with a description and general location of each utility facility. DOT

must then provide the owner with a set of plans for the proposed project. The owner

must submit a work plan to DOT proposing any relocations or adjustments to utility

facilities required by the proposed project. DOT must review work plans for

compliance with permit requirements and, once approved, notify the owner when

utility facility relocation work may begin.

Under the bill, a contractor that incurs costs as a result of a utility relocation

delay may file a utility delay damages claim with the department. “Utility relocation

delay” means a change in operations of a contractor or the rescheduling of work by

a contractor that is caused by the uncompleted relocation or adjustment of a utility

facility located in the right-of way, regardless of whether the relocation or

adjustment of the utility facility is identified in a plan.

The bill requires DOT to notify the owner of the relevant utility facility upon

receipt of a damages claim. The owner may respond to the claim by providing

additional information related to the claim. DOT must consider all information

provided and, if DOT determines that a utility relocation delay occurred, must

compensate the contractor for costs incurred as a result.

Under the bill, if a utility relocation delay was caused by a utility facility

owner's failure to complete a relocation in accordance with an approved plan, the

utility facility owner is liable to DOT for any compensation paid to a contractor as

a result of a utility relocation delay. The owner must make payment to DOT within

60 days, subject to the right to appeal DOT's determination. If the owner fails to

make the required payment, DOT may seek remedy by filing a civil suit against the

owner.

The bill requires DOT to submit a report to the Joint Committee on Finance

within four years providing specified information about utility relocation damages

claims received by DOT. Within six months of receipt of the report, JFC must make

a recommendation as to whether the process created by the bill should be amended

or repealed.