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Summary

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This legislation changes the financial rules for moving utility lines (like electricity, gas, or water) during state highway construction projects that receive federal funding. Currently, the law often requires utility companies to share the cost of moving their equipment or limits how much the state will reimburse them. This bill amends the law to state that the government will pay the full cost of relocating these utilities as part of the highway project's expenses, removing previous cost-sharing formulas and specific performance requirements for reimbursement.
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Analysis

Pros for Progressives

  • May prevent utility companies from raising monthly rates on working-class consumers to cover the unexpected costs of government-mandated infrastructure relocations.
  • Could accelerate the completion of necessary highway repairs and public transit infrastructure by removing financial disputes that often delay construction.
  • Ensures that essential services like water and electricity are maintained and modernized efficiently during public works projects, benefiting the community infrastructure.

Cons for Progressives

  • Transfers a financial burden from private, for-profit utility corporations onto the taxpayers, effectively functioning as a corporate subsidy.
  • Removes language that required utilities to meet specific deadlines to get paid, which could lead to delays in public projects without accountability.
  • Reduces the total amount of state funds available for other critical transportation needs, such as public transit or bike paths, by diverting money to utility costs.

Pros for Conservatives

  • Protects private property rights by ensuring that utility companies are not forced to pay for relocations mandated by government projects.
  • Reduces the financial and regulatory burden on private businesses, allowing them to utilize their capital for growth rather than government mandates.
  • Simplifies the construction process by establishing clear financial responsibility, potentially cutting through bureaucratic red tape and disputes.

Cons for Conservatives

  • Increases government spending and taxpayer liability by shifting 100% of the relocation costs from private entities to the state budget.
  • Removes performance-based requirements that previously ensured utilities had to work efficiently and on time to receive state money.
  • Expands the cost of government-run infrastructure projects without identifying a specific funding source or offset for the increased expense.

Constitutional Concerns

None Likely

Impact Overview

Groups Affected

  • Utility Companies
  • State Taxpayers
  • Department of Transportation
  • Highway Construction Contractors
  • Commuters

Towns Affected

All

Cost to Taxpayers

Amount unknown

Revenue Generated

None

BillBuddy Impact Ratings

Importance

35

Measures population affected and overall level of impact.

Freedom Impact

0

Level of individual freedom impacted by the bill.

Public Services

40

How much the bill is likely to impact one or more public services.

Regulatory

20

Estimated regulatory burden imposed on the subject(s) of the bill.

Clarity of Bill Language

90

How clear the language of the bill is. Higher ambiguity equals a lower score.

Enforcement Provisions

40

Measures enforcement provisions and penalties for non-compliance (if applicable).

Environmental Impact

10

Impact the bill will have on the environment, positive or negative.

Privacy Impact

10

Impact the bill is likely to have on the privacy of individuals.

Bill Status

Current Status

Held
Comm Passed
Floor Passed
Law

History

• 03/20/2026 Introduced, referred to Senate Finance
• 03/27/2026 Scheduled for hearing and/or consideration (04/02/2026)
• 04/02/2026 Committee recommended measure be held for further study

Bill Text

SECTION 1. Section 24-8.1-2 of the General Laws in Chapter 24-8.1 entitled "Relocation of Utility Services" is hereby amended to read as follows:
24-8.1-2. Relocation of utility facilities necessitated by highway construction.
Notwithstanding any provision of law or of any charter or statute, general or special, to the contrary, whenever state-initiated relocation of utility facilities in the state, owned by private corporations, private companies, municipalities, political subdivisions, authorities, or agencies of the state, whether within or without the limits of public ways, shall become necessary in connection with a highway project on the federal aid primary or secondary systems or on the national system of interstate and defense highways, including extensions thereof, for which the state shall be entitled under any law of the United States to reimbursement from federal funds for any portion of the cost of the project, then the state may order the relocation of the utility facilities, and the private corporation, private company, municipality, political subdivision, agencies of the state, or authority owning or operating the facilities shall promptly relocate the facilities in accordance with the order and the state shall pay the cost of the relocation to the utility as part of the cost of the federally aided highway project reimburse the owner of the utility or utility facility for the cost of relocation subject to the following limitations and in accordance with the following formula: for any utility facility that is to be reimbursed federally, in whole or in part, and for any utility facility that does not qualify for federal reimbursement, the division shall reimburse the owner fifty percent (50%) of the costs of relocating the utility facility; in no case shall a utility be reimbursed for any type of betterment; reimbursement is for relocation costs only; the state shall pay the cost of the relocation to the utility as part of the cost of the federally aided highway project. A utility relocation shall be eligible for reimbursement pursuant to this section only if it is completed to the satisfaction of the state within target dates established by the state and in accordance with design criteria set forth by the state for the relocation in a manner that facilitates the timely completion of the affected project. The state shall pay a reasonable amount to private corporations and private companies for the relocation of utilities commencing with highway projects that are authorized for construction after March 1, 1976.

SECTION 2. This act shall take effect upon passage.

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