THE SENATE	S.B. NO.	2756
TWENTY-FIFTH LEGISLATURE, 2010		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO COST SHARING IN THE RELOCATION AND UNDERGROUNDING OF UTILITY FACILITIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     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.

     (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] The 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] a 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 as hereinafter provided [for].

     (c)  The amount to be paid out of state or county funds shall be computed as follows:

     (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;

         (C)  In the case of a privately owned utility facility only, the first $10,000 of the expense of [such] the work;

         (D)  [The] One half of the balance of the cost, in the case of a privately owned utility facility only, shall be paid [one-half] by the owner [thereof,] of the facility 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 utility owner, a utility shall pay its full share for any betterment or relocation costs to the state or county highway agency thirty days prior to removal, relocation, replacement, or reconstruction of utility facilities.  A state or county highway agency shall pay its full share for any betterment or relocation costs thirty days prior to construction.

(e)  Provided that this subsection shall not apply to a telecommunications carrier utility owner, if the cost for removal, relocation, replacement, or reconstruction of utility facilities exceeds an amount mutually agreed upon by all parties, then monthly progress payments shall be made by both a utility and a state or county highway agency instead of upfront payments pursuant to subsection (d).

(f)  Cost share under this section for a state or county agency and for a utility shall be determined after the state or county agency determines the winning bidder for the project and calculates estimated cost sharing amounts.  The final cost share under this section shall be based on the actual cost incurred by the project and shall be subject to review and mutual agreement by all parties to the project."

     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] above ground facilities.

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

     (1)  The director of transportation determines that exceptions are appropriate due to [either]:

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

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

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

(c)  When federal highway funds are available to pay for federal share of the cost pursuant to subsection (a), the federal highway funds shall be appropriated toward eighty per cent of the total cost to underground existing utility facilities.  Ten per cent of the total cost to underground shall constitute the state or county highway agency's share.  The remaining ten per cent of the total cost shall constitute the utility's share.  This subsection shall not apply to a telecommunications carrier utility owner. 

(d)  Any federal non-highway funds attributable to the relocation, replacement, reconstruction, or undergrounding of any utility facility shall be attributable solely to the utility's cost share unless the state or county highway agency has sponsored the application for federal non-highway funds.  If the state or county highway agency has sponsored the application for federal non-highway funds, any federal non-highway funds shall be apportioned ratably among the cost shares of the state or county highway agency and the affected utilities."

     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, 2050.

Report Title:

Highway; Cost Sharing; Utility Owners; Right-of-Way; Relocation

Description:

Allocates cost share among highway agencies and utilities for projects involving the removal, relocation, replacement, or reconstruction of utility facilities that border state or county highways.  Clarifies federal funding share for cost of undergrounding utility facilities.  Effective 7/1/50.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.