Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 492 3
4
By: Senator J. Bryant 5
By: Representative Lundstrum 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING THE RELOCATION OF 9
UTILITY FACILITIES; TO AMEND THE LAW CONCERNING THE 10
ACQUISITION, CONDEMNATION, AND DISPOSITION OF REAL 11
PROPERTY BY THE STATE HIGHWAY COMMISSION; TO 12
ESTABLISH A PROCESS FOR THE RELOCATION OF A UTILITY 13
FACILITY LOCATED ON A PUBLIC RIGHT OF WAY; AND FOR 14
OTHER PURPOSES. 15
16
17
Subtitle 18
TO AMEND THE LAW CONCERNING THE 19
RELOCATION OF UTILITY FACILITIES; AND TO 20
AMEND THE LAW CONCERNING THE 21
ACQUISITION, CONDEMNATION, AND 22
DISPOSITION OF REAL PROPERTY BY THE 23
STATE HIGHWAY COMMISSION. 24
25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
27
SECTION 1. Arkansas Code Title 27, Chapter 67, Subchapter 3, is 28
amended to add additional sections to read as follows: 29
27-67-325. Relocation of utility facility — Definitions. 30
(a) As used in this section and § 27 -67-326: 31
(1) "Extraordinary event" means: 32
(A) An event beyond the reasonable control of a utility; 33
or 34
(B) A change of plans that causes a delay in the work of a 35
utility required under a relocation agreement; 36 SB492
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(2)(A) "Municipal utility system" means a utility system owned 1
or operated by a municipality that provides or removes at least one (1) of 2
the following: 3
(i) Electricity; 4
(ii) Water; 5
(iii) Wastewater; 6
(iv) Gas; 7
(v) Cable television; or 8
(vi) Broadband service. 9
(B) "Municipal utility system" includes without limitation 10
a: 11
(i) Consolidated waterworks system under the 12
Consolidated Waterworks Authorization Act, § 25 -20-301 et seq.; 13
(ii) Utility system managed or operated by a 14
nonprofit corporation under § 14 -199-701 et seq.; and 15
(iii) Utility system owned or operated by a 16
municipality or by a consolidated utility district under the General 17
Consolidated Public Utility System Improvement District Law, § 14 -217-101 et 18
seq.; 19
(3)(A) “Public transportation facility” means a transportation 20
facility and a right -of-way that serves the public. 21
(B) "Public transportation facility" includes without 22
limitation a: 23
(i) Highway, interstate, freeway, street, or other 24
road; 25
(ii) Trail; 26
(iii) Bicycle trail; 27
(iv) Sidewalk or other pedestrian facility; and 28
(v) Railway; 29
(4)(A) “Relocation” means the adjustment, removal, or relocation 30
of a utility facility determined by the Arkansas Department of Transportation 31
to be necessary or appropriate in connection with the construction or 32
reconstruction of a public transportation facility. 33
(B) "Relocation" includes without limitation: 34
(i) Removing and reinstalling a utility facility, 35
including a necessary temporary utility facility; 36 SB492
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(ii) Moving, rearranging, or changing the type of 1
existing utility facility; 2
(iii) Taking necessary safety and protective 3
measures; and 4
(iv) Constructing a replacement utility facility 5
that is functionally equivalent to an existing utility facility and necessary 6
for the continuous operation of the utility service, the project economy, or 7
the sequence of public transportation facility construction; 8
(5) "Relocation agreement" means a written agreement between the 9
department and a utility concerning a specific relocation; 10
(6) "Relocation proposal" means a formal written submission 11
prepared by a utility in response to a request from the department concerning 12
a specific relocation; 13
(7) “Utility” means a private, public, or cooperative utility 14
that transmits or distributes communications, electricity, gas, liquids, 15
steam, or sewerage by means of a utility facility; 16
(8) “Utility accommodation rules” means the rules adopted by the 17
State Highway Commission and administered by the department that: 18
(A) Address the processes and procedures for a utility to 19
receive reimbursement for a relocation on public transportation facilities of 20
the commission; and 21
(B) Establish the process for permits for the placement of 22
utility facilities on public transportation facilities of the commission; and 23
(9) "Utility facility" means a line, facility, or system of a 24
utility that is used, is available for use, or was formerly used to transmit 25
or distribute communications, electricity, gas, liquids, steam, water, or 26
sewerage to the public. 27
(b)(1) When a utility facility located on a public transportation 28
facility must be removed, relocated, or adjusted to accommodate a change to a 29
public transportation facility, the department and the utility shall 30
negotiate a relocation agreement establishing the reasonable schedule for 31
relocation and the duties of the department and the utility concerning the 32
relocation. 33
(2) When negotiating the relocation agreement under subdivision 34
(b)(1) of this section, the: 35
(A) Department shall: 36 SB492
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(i) Provide written notice to the utility of the 1
need for the relocation located on the public transportation facility that 2
shall include: 3
(a) Plans that clearly identify all known 4
utilities that own a utility facility that is subject to relocation; 5
(b) The area of the public transportation 6
facility the department or commission intends to acquire for the project; and 7
(c) The proposed right -of-way acquisition and 8
timeline; 9
(ii) Provide to the utility the construction plans 10
for the project that demonstrate the need for the relocation; 11
(iii) Establish a reasonable date for the submission 12
of a relocation proposal; 13
(iv) Coordinate a relocation agreement for the work 14
to be performed by the utility, including a schedule for the relocation; and 15
(v) Issue a work order to the utility to begin the 16
relocation upon execution of a relocation agreement; and 17
(B) Utility shall: 18
(i) Submit to the department a relocation proposal 19
in accordance with the utility accommodation rules that includes without 20
limitation: 21
(a) A plan for the relocation in accordance 22
with the construction plans for the project provided by the department as 23
required under subdivision (b)(2)(A)(ii); 24
(b) A reasonable schedule for the completion 25
of the relocation; 26
(c) Reasonable cost estimates for the 27
relocation; and 28
(d) A final date all work will be complete for 29
the relocation; 30
(ii) Begin and complete the relocation within the 31
time frame specified in the relocation agreement negotiated under subdivision 32
(b)(1) of this section; and 33
(iii) Submit a monthly progress report to the 34
department regarding the status of the relocation until the relocation is 35
complete. 36 SB492
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(c)(1) After a relocation agreement is executed under this section, 1
the department shall issue a notice to proceed with the relocation to the 2
owner of the utility facility that is the subject of the relocation 3
agreement. 4
(2) A notice to proceed issued under subdivision (c)(1) of this 5
section serves as the formal authorization for the utility to commence work 6
on the relocation in accordance with terms of the relocation agreement. 7
(d) If a utility other than a municipal utility system fails to follow 8
the process established in the utility accommodation rules or the relocation 9
agreement to complete the relocation within the time period stated in the 10
relocation agreement, the department may do one (1) or both of the following: 11
(1) Withhold approval of a permit application for utility work 12
occurring on the right -of-way of the department or the commission by the 13
utility except for permits required to address an emergency; or 14
(2) Assess and collect from the utility a civil penalty under 15
subsection (e) of this section for each day the utility fails to comply with 16
the requirements stated in the utility accommodation rules or the relocation 17
agreement. 18
(e)(1) The department may assess and collect from a utility other than 19
a municipal utility system a civil penalty of five hundred dollars ($500) for 20
each business day the utility fails to: 21
(A) Enter into negotiations for a relocation agreement 22
between the department and the utility; or 23
(B) Comply with a relocation agreement to which the 24
utility is a party, including completing the work according to the schedule 25
in the relocation agreement. 26
(2) A civil penalty shall not be assessed under this subsection 27
(e) for a delay that is the result of: 28
(A) An extraordinary event; or 29
(B) Excavation that damages an underground utility 30
facility for which: 31
(i) The owner of the utility facility was not 32
provided notice of the intent to excavate; or 33
(ii) The utility facility was not located and marked 34
properly under the Arkansas Underground Facilities Damage Prevention Act, § 35
14-271-101 et seq. 36 SB492
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(3)(A) The department shall give a utility written notice of the 1
intent to assess a civil penalty under this subsection and an opportunity to 2
appeal the department’s decision and show cause why the civil penalty should 3
not be assessed. 4
(B) Upon a finding that a civil penalty should be assessed 5
under this subsection (e), the department shall issue an appropriate order to 6
the utility. 7
(C) If a civil penalty has not been paid in full within 8
ninety (90) days after the entry of an order under subdivision (e)(3)(B) of 9
this section, the civil penalty may be: 10
(i) Deducted from the final reimbursement payment by 11
the department to the utility; or 12
(ii) Subject to a collection action. 13
(4) An appeal of a decision to assess a civil penalty under this 14
subsection (e) shall be in accordance with the utility accommodation rules 15
and the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 16
(5) Moneys collected as civil penalties under this subsection 17
(e) shall be paid into the State Highway and Transportation Department Fund 18
and designated for use in a utility relocation grant and loan program to be 19
established by the department for the purpose of providing a grant or loan to 20
a small utility for a relocation that is nonreimbursable. 21
(f)(1) If a municipal utility system fails to follow the process 22
established in the utility accommodation rules or the relocation agreement to 23
complete a relocation within the time period stated in the relocation 24
agreement, the department may relocate the utility facility that is the 25
subject of the relocation agreement. 26
(2) If the department relocates a utility facility under 27
subdivision (f)(1) of this section, the department may enter into a contract 28
to complete the engineering, relocation, or other work required to relocate 29
the utility facility of a municipal utility system after providing written 30
notice to the municipal utility system. 31
(3)(A)(i) If within ten (10) days of the receipt of written 32
notice from the department under subdivision (f)(2) of this section, the 33
municipal utility system provides the department with a list of three (3) or 34
more approved engineers and three (3) or more approved contractors to perform 35
the relocation or design specifications for the utility facility that is to 36 SB492
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be relocated, the department shall enter into a contract only with an 1
engineer or contractor contained in the list to perform the relocation. 2
(ii) The department shall not enter into a contract 3
with an engineer or contractor who does not comply with the procurement 4
process of the department. 5
(B) If within ten (10) days of the receipt of written 6
notice from the department under subdivision (f)(2) of this section, the 7
municipal utility system provides the department with design specifications 8
for the utility facility that is to be relocated, then the department shall 9
require compliance with the design specifications in the contract for the 10
relocation. 11
(4) A contract entered into by the department to relocate a 12
utility facility of a municipal utility system under this subsection shall 13
identify the municipal utility system as the beneficiary of the contract. 14
(5) A municipal utility system that has entered into a contract 15
with the department to relocate a utility system of the municipal utility 16
system under this subsection may: 17
(A) Inspect the relocation of the utility facility; 18
(B) Inspect an underground utility facility before it is 19
covered; and 20
(C) Pursue a claim against a person or entity other than 21
the department based on the relocation of the utility facility whether 22
provided under the contract with the department or by law. 23
(6) Within ninety (90) days of the receipt of a written invoice 24
from the department for the cost of a relocation under this subsection, a 25
municipal utility system shall: 26
(A) Pay to the department the non -reimbursable portion of 27
the cost of the relocation that the municipal utility system does not 28
dispute; and 29
(B) Enter into a dispute resolution process with the 30
department for any disputed portion of the invoice. 31
(7) If a municipal utility system fails to comply with 32
subdivision (f)(6) of this section, the department may offset and collect the 33
amount owed by the municipal utility system from any funds administered by 34
the department for disbursement to the municipality, including without 35
limitation turnback and state aid street funds that may be lawfully applied 36 SB492
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to the relocation costs. 1
(g) A municipal utility system may agree to the relocation of a 2
utility facility of the municipal utility system by the department using the 3
process provided in subsection (f) of this section. 4
(h)(1) The department shall not act under subsection (d) or subsection 5
(f) of this section if an extraordinary event prevents the completion of a 6
relocation within the time frame specified in the relocation agreement. 7
(2) If an extraordinary event occurs under subdivision (h)(1) of 8
this section, the utility shall provide the department with a: 9
(A) Written notice of the extraordinary event; and 10
(B) Revised relocation proposal and schedule under 11
subdivision (b)(2)(B)(i) of this section. 12
(3) Upon receipt of a written notice under subdivision (h)(2) of 13
this section, the department shall issue a modification to the relocation 14
agreement reflecting a new date for the completion of the relocation as 15
determined by the department. 16
(i) The department shall promulgate rules for the implementation of 17
this section. 18
19
27-67-326. Relocation of utility facility — Rules. 20
(a)(1) Utility accommodation rules adopted by the State Highway 21
Commission concerning relocation under § 27 -67-325 shall include without 22
limitation the relocation coordination process between the Arkansas 23
Department of Transportation and the utility. 24
(2) Rules concerning the relocation coordination process between 25
the department and the utility shall include without limitation that: 26
(A) The department shall schedule a meeting with the owner 27
of the utility facility at a time mutually convenient for both parties; and 28
(B) Before a meeting under subdivision (a)(2)(A) of this 29
section, the department shall provide the owner of the utility facility with 30
plans for a proposed relocation. 31
(3) The plans for a proposed relocation under subdivision 32
(a)(2)(B) of this section shall: 33
(A) Clearly indicate: 34
(i) All identified existing utilities affected by 35
the relocation; and 36 SB492
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(ii) The right-of-way the department intends to 1
acquire for the relocation; and 2
(B) Use criteria that satisfy Subsurface Utility 3
Engineering Quality Level C or better. 4
(4) During a meeting under subdivision (a)(2)(A) of this 5
section, the department and the owner of the utility facility shall: 6
(A) Identify the scope of utility facilities that will be 7
subject to relocation; 8
(B) Discuss: 9
(i) Proposed arrangements for the relocation, 10
including any right-of-way provided by the department for relocation; 11
(ii) The expected cost of the relocation; and 12
(iii) A deadline by which the owner of the utility 13
facility shall submit a relocation proposal to the department; and 14
(C) Agree upon the number of days required for the 15
relocation. 16
(5)(A) The department shall provide the utility with a written 17
report summarizing the decisions made and agreements reached during the 18
meeting held under subdivision (a)(2)(A) of this section. 19
(B) The report provided under subdivision (a)(5)(A) of 20
this section shall serve as the basis for the relocation proposal. 21
(b)(1) The rules promulgated by the department concerning a relocation 22
under § 27-67-325 shall include without limitation: 23
(A) The process for the creation of a relocation proposal 24
and relocation agreement; and 25
(B) The procedure for the reimbursement of the costs of a 26
relocation. 27
(2) The rules for a relocation proposal shall include without 28
limitation that a relocation proposal: 29
(A) Be provided to each party in written form; 30
(B) Be signed by the authorized representatives of the 31
department and the utility; and 32
(C) Include: 33
(i) The plan for the relocation; 34
(ii) The schedule for the utility to complete the 35
relocation; 36 SB492
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(iii) A cost estimate for the relocation; 1
(iv) Deadlines for the commencement and completion 2
of the relocation; and 3
(v) The estimated cost of reimbursement by the 4
department for the relocation. 5
(3)(A) The rules for a relocation agreement shall include that a 6
relocation agreement may be modified if: 7
(i) An extraordinary event occurs; and 8
(ii) Either party requests a modification to the 9
relocation agreement. 10
(B) The modification of a relocation agreement shall: 11
(i) Be documented in writing; 12
(ii) Include updated timelines, costs, or other 13
relevant terms; and 14
(iii) Be approved by both parties. 15
(4) Rules for the reimbursement of the costs for a relocation 16
shall include without limitation that the: 17
(A) Utility owner may submit an invoice for the 18
reimbursement of costs to the department upon completion of the relocation; 19
(B) Invoice for the reimbursement of costs for the 20
relocation shall reflect all costs and expenses incurred by the utility for 21
the relocation; and 22
(C) Department shall pay a complete invoice submitted 23
under subdivision (b)(4)(A) of this section within ninety (90) days of 24
receipt of the complete invoice by the department. 25
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