HB2603 HD1.DOC

SECTION 1. Section 264-33, Hawaii Revised Statutes, is amended to read as follows:

"§264-33 Relocation of utility facilities. (a) Whenever, as the result of the work of construction, reconstruction, or maintenance of any state highway or state or county federal-aid highway, it is necessary to provide for or require the removal, relocation, replacement, or reconstruction of any utility facility, and the expense of removal, relocation, replacement, or reconstruction exceeds $10,000, one-half of this excess expense shall be a proper charge against the state or county funds available for the construction or maintenance of state or county highways[~~; provided that all of the expense of removal, relocation, replacement, or reconstruction of publicly owned utility facilities shall be a charge against the state or county funds.~~] and the balance of costs shall be borne by the utility owner.

(b) The work of the removal, relocation, replacement, or reconstruction may be performed in the following manner, subject to the following conditions:

(1) The work shall be performed in accordance with standards of construction currently used by the utility; and

(2) Such work may be performed by contract as provided in chapter 103D; or after first calling for bids under that chapter, the director of transportation or other officer having power to award such contract, may contract with the public utility owning the utility facility to have the work performed by it, with the use of its own employees and equipment at not to exceed actual cost or in the amount of the lowest responsible bid (if such bids have been submitted), whichever is the lowest amount, with the adjustments hereinafter provided for.

(1) The total cost shall first be determined.

(2) From the total cost there shall be deducted the following items:

(A) Depreciation, except that this shall not be applicable to publicly owned utility facilities, and the salvage value of any materials or parts salvageable and retained by the utility;

(B) The amount of any betterment to the utility facility resulting from the removal, relocation, replacement, or reconstruction;

(D) The balance of the cost, in the case of a privately owned utility facility only, shall be paid one-half by the owner thereof, and the remaining one-half shall be the amount payable out of state or county funds.

(d) Notwithstanding any other law to the contrary, and with the exception of a telecommunications carrier, the utility owner shall pay its full share for any betterment or relocation costs to the state or county highway agency within thirty-days after the date that the utility owner's share of the costs is determined. The utility owner's cost share shall be determined after the state or county highway agency determines the winning bidder and finalized cost sharing amounts are calculated."

SECTION 2. Section 264-33.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§264-33.5[]] Underground installation of utility facilities along federal-aid highways; when required; when waived. (a) The director of transportation shall arrange for the installation of all utility cables and facilities below the ground, within a [~~berm~~] corridor or away from the alignment of a highway, during the design or redesign and construction or reconstruction phases of any new or existing federal-aid highway project, when a determination is made that federal highway funds are available to pay for the federal share of the cost differential between underground and overhead facilities.

(b) The director of transportation may make exceptions to subsection (a) if:

(1) The director determines that exceptions are appropriate due to either:

(A) Any of the following criteria: environmental, safety, research, technology, corridor alignment, or management concern; or

(B) The following criteria collectively: state funding impacts, economic feasibility, and federal funding concerns; or

(2) The projects do not lend themselves to undergrounding, such as: resurfacing, traffic signal installation, drainage installation, bikeway markings, guardrail installation, traffic markings, and enhancement improvements.

(c) In determining the cost sharing allocation, with the exception of a telecommunications carrier, the following shall apply:

(1) The basic costs attributable to relocation of an overhead installation to an overhead installation shall be shared in the manner set forth in section 264.33; and

(2) The costs differential between underground and overhead installations shall be allocated one-half to the utility owner and one-half to the state or county highway agency.

(d) Notwithstanding any other law to the contrary, and with the exception of a telecommunications carrier, the utility owner shall pay its full share for any betterment or relocation or undergrounding costs to the state or county highway agency within thirty_days after the date that the utility owner's share of the costs is determined. The utility owner's cost share shall be determined after the state or county highway agency determines the winning bidder and finalized cost sharing amounts are calculated.

(e) This section shall apply to any existing and new utility facilities."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.

HOUSE OF REPRESENTATIVES	H.B. NO.	2603
TWENTY-FIFTH LEGISLATURE, 2010		H.D. 1
STATE OF HAWAII