Assigned to TRANS                                                                                                      FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2057

 

ADOT; utility damage agreements

 

Purpose

 

Allows the Arizona Department of Transportation (ADOT) to enter into a contract or agreement for the purpose of compensating a utility for facility damages in the event that a change or relocation of a utility is necessary and its relocation or change requires an increase in maintenance costs.

 

Background

 

Current statute allows ADOT to enter into contracts for construction that may be extended beyond the fiscal year and for the purpose of right-of-way acquisitions.  H.B. 2057 allows ADOT to enter into a contract with a utility company for additional maintenance costs required when a utility must relocate its facilities as a result of a highway project.

 

ADOT and the Salt River Project have long had agreements to require ADOT to compensate the utility for its increased costs when ADOT requests that a facility be relocated in connection with a highway project.  ADOT has received a legal opinion that the statutes need to be amended to codify this practice in statute.

 

There is no anticipated fiscal impact to the state general fund associated with this legislation.

 

Provisions

 

1.      Allows ADOT to enter into a contract or agreement to compensate a utility company if construction of a transportation facility results in the utility company incurring an increase in cost of maintenance, repair or replacement of the facilities due to changes in configuration or location of the utility’s facilities.

 

2.      States that this requirement applies to all contracts or agreements in effect on the effective date of this legislation.

 

3.      Provides for a general effective date.

 

House Action

 

TRANS           1/22/01            DP       9-0-0-1

3rd Read           1/30/01            DP       58-0-2-0

 

Prepared by Senate Staff

March 13, 2001