Arkansas 2025 Regular Session

Arkansas Senate Bill SB492 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 699 of the Regular Session
3		-	ZRC016 04-07-2025 20:00:57 ZRC016
4		-
5		-	State of Arkansas As Engrossed: S4/7/25 1
	2	+	ZRC016 03/17/2025 4:26:29 PM ZRC016
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 SENATE BILL 492 3
8	6		4
9	7		By: Senator J. Bryant 5
10	8		By: Representative Lundstrum 6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO AMEND THE LAW CONCERNING THE RELOCATION OF 9
14	12		UTILITY FACILITIES; TO AMEND THE LAW CONCERNING THE 10
15	13		ACQUISITION, CONDEMNATION, AND DISPOSITION OF REAL 11
16	14		PROPERTY BY THE STATE HIGHWAY COMMISSION; TO 12
17	15		ESTABLISH A PROCESS FOR THE RELOCATION OF A UTILITY 13
18	16		FACILITY LOCATED ON A PUBLIC RIGHT OF WAY; AND FOR 14
19	17		OTHER PURPOSES. 15
20	18		16
21	19		17
22	20		Subtitle 18
23	21		TO AMEND THE LAW CONCERNING THE 19
24	22		RELOCATION OF UTILITY FACILITIES; AND TO 20
25	23		AMEND THE LAW CONCERNING THE 21
26	24		ACQUISITION, CONDEMNATION, AND 22
27	25		DISPOSITION OF REAL PROPERTY BY THE 23
28	26		STATE HIGHWAY COMMISSION. 24
29	27		25
30	28		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
31	29		27
32	30		SECTION 1. Arkansas Code Title 27, Chapter 67, Subchapter 3, is 28
33	31		amended to add additional sections to read as follows: 29
34	32		27-67-325. Relocation of utility facility — Definitions. 30
35	33		(a) As used in this section and § 27 -67-326: 31
36	34		(1) "Extraordinary event" means: 32
37	35		(A) An event beyond the reasonable control of a utility; 33
38	36		or 34
39	37		(B) A change of plans that causes a delay in the work of a 35
40		-	utility required under a relocation agreement; 36 ~~As Engrossed: S4/7/25~~ SB492
	38	+	utility required under a relocation agreement; 36 SB492
41	39
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43		-
44		-
	40	+	2 03/17/2025 4:26:29 PM ZRC016
45	41		(2)(A) "Municipal utility system" means a utility system owned 1
46	42		or operated by a municipality that provides or removes at least one (1) of 2
47	43		the following: 3
48	44		(i) Electricity; 4
49	45		(ii) Water; 5
50	46		(iii) Wastewater; 6
51	47		(iv) Gas; 7
52	48		(v) Cable television; or 8
53	49		(vi) Broadband service. 9
54	50		(B) "Municipal utility system" includes without limitation 10
55	51		a: 11
56	52		(i) Consolidated waterworks system under the 12
57	53		Consolidated Waterworks Authorization Act, § 25 -20-301 et seq.; 13
58	54		(ii) Utility system managed or operated by a 14
59	55		nonprofit corporation under § 14 -199-701 et seq.; and 15
60	56		(iii) Utility system owned or operated by a 16
61	57		municipality or by a consolidated utility district under the General 17
62	58		Consolidated Public Utility System Improvement District Law, § 14 -217-101 et 18
63	59		seq.; 19
64	60		(3)(A) “Public transportation facility” means a transportation 20
65	61		facility and a right -of-way that serves the public. 21
66	62		(B) "Public transportation facility" includes without 22
67	63		limitation a: 23
68	64		(i) Highway, interstate, freeway, street, or other 24
69	65		road; 25
70	66		(ii) Trail; 26
71		-	(iii) Bicycle trail; ~~and~~ 27
72		-	(iv) Sidewalk or other pedestrian facility; 28
73		-	(~~4)(A~~) ~~“Relocation” means the adjustment, removal, or relocation~~ 29
74		-	of a ~~utility facility determined by~~ the ~~Arkansas Department of Transportation~~ 30
75		-	~~to be necessary or appropriate in connection with~~ the ~~construction or~~ 31
76		-	~~reconstruction of a public transportation facility.~~ 32
77		-	~~(B) "Relocation" includes without limitation:~~ 33
78		-	(i) ~~Removing and reinstalling a utility facility,~~ 34
79		-	~~including~~ a ~~necessary temporary~~ utility facility; 35
80		-	~~(ii) Moving,~~ ~~rearranging, or changing the type of~~ 36 ~~As Engrossed: S4/7/25~~ SB492
	67	+	(iii) Bicycle trail; 27
	68	+	(iv) Sidewalk or other pedestrian facility; and 28
	69	+	(v) Railway; 29
	70	+	(4)(A) “Relocation” means the adjustment, removal, or relocation 30
	71	+	of a utility facility determined by the Arkansas Department of Transportation 31
	72	+	to be necessary or appropriate in connection with the construction or 32
	73	+	reconstruction of a public transportation facility. 33
	74	+	(B) "Relocation" includes without limitation: 34
	75	+	(i) Removing and reinstalling a utility facility, 35
	76	+	including a necessary temporary utility facility; 36 SB492
81	77
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	79	+	(ii) Moving, rearranging, or changing the type of 1
	80	+	existing utility facility; 2
	81	+	(iii) Taking necessary safety and protective 3
	82	+	measures; and 4
	83	+	(iv) Constructing a replacement utility facility 5
	84	+	that is functionally equivalent to an existing utility facility and necessary 6
	85	+	for the continuous operation of the utility service, the project economy, or 7
	86	+	the sequence of public transportation facility construction; 8
	87	+	(5) "Relocation agreement" means a written agreement between the 9
	88	+	department and a utility concerning a specific relocation; 10
	89	+	(6) "Relocation proposal" means a formal written submission 11
	90	+	prepared by a utility in response to a request from the department concerning 12
	91	+	a specific relocation; 13
	92	+	(7) “Utility” means a private, public, or cooperative utility 14
	93	+	that transmits or distributes communications, electricity, gas, liquids, 15
	94	+	steam, or sewerage by means of a utility facility; 16
	95	+	(8) “Utility accommodation rules” means the rules adopted by the 17
	96	+	State Highway Commission and administered by the department that: 18
	97	+	(A) Address the processes and procedures for a utility to 19
	98	+	receive reimbursement for a relocation on public transportation facilities of 20
	99	+	the commission; and 21
	100	+	(B) Establish the process for permits for the placement of 22
	101	+	utility facilities on public transportation facilities of the commission; and 23
	102	+	(9) "Utility facility" means a line, facility, or system of a 24
	103	+	utility that is used, is available for use, or was formerly used to transmit 25
	104	+	or distribute communications, electricity, gas, liquids, steam, water, or 26
	105	+	sewerage to the public. 27
	106	+	(b)(1) When a utility facility located on a public transportation 28
	107	+	facility must be removed, relocated, or adjusted to accommodate a change to a 29
	108	+	public transportation facility, the department and the utility shall 30
	109	+	negotiate a relocation agreement establishing the reasonable schedule for 31
	110	+	relocation and the duties of the department and the utility concerning the 32
	111	+	relocation. 33
	112	+	(2) When negotiating the relocation agreement under subdivision 34
	113	+	(b)(1) of this section, the: 35
	114	+	(A) Department shall: 36 SB492
83	115
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	117	+	(i) Provide written notice to the utility of the 1
	118	+	need for the relocation located on the public transportation facility that 2
	119	+	shall include: 3
	120	+	(a) Plans that clearly identify all known 4
	121	+	utilities that own a utility facility that is subject to relocation; 5
	122	+	(b) The area of the public transportation 6
	123	+	facility the department or commission intends to acquire for the project; and 7
	124	+	(c) The proposed right -of-way acquisition and 8
	125	+	timeline; 9
	126	+	(ii) Provide to the utility the construction plans 10
	127	+	for the project that demonstrate the need for the relocation; 11
	128	+	(iii) Establish a reasonable date for the submission 12
	129	+	of a relocation proposal; 13
	130	+	(iv) Coordinate a relocation agreement for the work 14
	131	+	to be performed by the utility, including a schedule for the relocation; and 15
	132	+	(v) Issue a work order to the utility to begin the 16
	133	+	relocation upon execution of a relocation agreement; and 17
	134	+	(B) Utility shall: 18
	135	+	(i) Submit to the department a relocation proposal 19
	136	+	in accordance with the utility accommodation rules that includes without 20
	137	+	limitation: 21
	138	+	(a) A plan for the relocation in accordance 22
	139	+	with the construction plans for the project provided by the department as 23
	140	+	required under subdivision (b)(2)(A)(ii); 24
	141	+	(b) A reasonable schedule for the completion 25
	142	+	of the relocation; 26
	143	+	(c) Reasonable cost estimates for the 27
	144	+	relocation; and 28
	145	+	(d) A final date all work will be complete for 29
	146	+	the relocation; 30
	147	+	(ii) Begin and complete the relocation within the 31
	148	+	time frame specified in the relocation agreement negotiated under subdivision 32
	149	+	(b)(1) of this section; and 33
	150	+	(iii) Submit a monthly progress report to the 34
	151	+	department regarding the status of the relocation until the relocation is 35
	152	+	complete. 36 SB492
84	153
85		-	existing utility facility; 1
86		-	(iii) Taking necessary safety and protective 2
87		-	measures; and 3
88		-	(iv) Constructing a replacement utility facility 4
89		-	that is functionally equivalent to an existing utility facility and necessary 5
90		-	for the continuous operation of the utility service, the project economy, or 6
91		-	the sequence of public transportation facility construction; 7
92		-	(5) "Relocation agreement" means a written agreement between the 8
93		-	department and a utility concerning a specific relocation; 9
94		-	(6) "Relocation proposal" means a formal written submission 10
95		-	prepared by a utility in response to a request from the department concerning 11
96		-	a specific relocation; 12
97		-	(7)(A) “Utility” means a private, public, or cooperative utility 13
98		-	that transmits or distributes communications, including without limitation 14
99		-	cable service and broadband service , electricity, gas, liquids, steam, or 15
100		-	sewerage by means of a utility facility. 16
101		-	(B) "Utility" does not include a railway or railroad 17
102		-	engaged in interstate commerce; 18
103		-	(8) “Utility accommodation rules” means the rules adopted by the 19
104		-	State Highway Commission and administered by the department that: 20
105		-	(A) Address the processes and procedures for a utility to 21
106		-	receive reimbursement for a relocation on public transportation facilities of 22
107		-	the commission; and 23
108		-	(B) Establish the process for permits for the placement of 24
109		-	utility facilities on public transportation facilities of the commission; and 25
110		-	(9) "Utility facility" means a line, facility, or system of a 26
111		-	utility that is used, is available for use, or was formerly used to transmit 27
112		-	or distribute communications, including without limitation cable service and 28
113		-	broadband service, electricity, gas, liquids, steam, water, or sewerage to 29
114		-	the public. 30
115		-	(b)(1) When a utility facility located on a public transportation 31
116		-	facility must be removed, relocated, or adjusted to accommodate a change to a 32
117		-	public transportation facility, the department and the utility shall 33
118		-	negotiate a relocation agreement establishing the reasonable schedule for 34
119		-	relocation and the duties of the department and the utility concerning the 35
120		-	relocation. 36 As Engrossed: S4/7/25 SB492
	154	+	5 03/17/2025 4:26:29 PM ZRC016
	155	+	(c)(1) After a relocation agreement is executed under this section, 1
	156	+	the department shall issue a notice to proceed with the relocation to the 2
	157	+	owner of the utility facility that is the subject of the relocation 3
	158	+	agreement. 4
	159	+	(2) A notice to proceed issued under subdivision (c)(1) of this 5
	160	+	section serves as the formal authorization for the utility to commence work 6
	161	+	on the relocation in accordance with terms of the relocation agreement. 7
	162	+	(d) If a utility other than a municipal utility system fails to follow 8
	163	+	the process established in the utility accommodation rules or the relocation 9
	164	+	agreement to complete the relocation within the time period stated in the 10
	165	+	relocation agreement, the department may do one (1) or both of the following: 11
	166	+	(1) Withhold approval of a permit application for utility work 12
	167	+	occurring on the right -of-way of the department or the commission by the 13
	168	+	utility except for permits required to address an emergency; or 14
	169	+	(2) Assess and collect from the utility a civil penalty under 15
	170	+	subsection (e) of this section for each day the utility fails to comply with 16
	171	+	the requirements stated in the utility accommodation rules or the relocation 17
	172	+	agreement. 18
	173	+	(e)(1) The department may assess and collect from a utility other than 19
	174	+	a municipal utility system a civil penalty of five hundred dollars ($500) for 20
	175	+	each business day the utility fails to: 21
	176	+	(A) Enter into negotiations for a relocation agreement 22
	177	+	between the department and the utility; or 23
	178	+	(B) Comply with a relocation agreement to which the 24
	179	+	utility is a party, including completing the work according to the schedule 25
	180	+	in the relocation agreement. 26
	181	+	(2) A civil penalty shall not be assessed under this subsection 27
	182	+	(e) for a delay that is the result of: 28
	183	+	(A) An extraordinary event; or 29
	184	+	(B) Excavation that damages an underground utility 30
	185	+	facility for which: 31
	186	+	(i) The owner of the utility facility was not 32
	187	+	provided notice of the intent to excavate; or 33
	188	+	(ii) The utility facility was not located and marked 34
	189	+	properly under the Arkansas Underground Facilities Damage Prevention Act, § 35
	190	+	14-271-101 et seq. 36 SB492
121	191
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	193	+	(3)(A) The department shall give a utility written notice of the 1
	194	+	intent to assess a civil penalty under this subsection and an opportunity to 2
	195	+	appeal the department’s decision and show cause why the civil penalty should 3
	196	+	not be assessed. 4
	197	+	(B) Upon a finding that a civil penalty should be assessed 5
	198	+	under this subsection (e), the department shall issue an appropriate order to 6
	199	+	the utility. 7
	200	+	(C) If a civil penalty has not been paid in full within 8
	201	+	ninety (90) days after the entry of an order under subdivision (e)(3)(B) of 9
	202	+	this section, the civil penalty may be: 10
	203	+	(i) Deducted from the final reimbursement payment by 11
	204	+	the department to the utility; or 12
	205	+	(ii) Subject to a collection action. 13
	206	+	(4) An appeal of a decision to assess a civil penalty under this 14
	207	+	subsection (e) shall be in accordance with the utility accommodation rules 15
	208	+	and the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 16
	209	+	(5) Moneys collected as civil penalties under this subsection 17
	210	+	(e) shall be paid into the State Highway and Transportation Department Fund 18
	211	+	and designated for use in a utility relocation grant and loan program to be 19
	212	+	established by the department for the purpose of providing a grant or loan to 20
	213	+	a small utility for a relocation that is nonreimbursable. 21
	214	+	(f)(1) If a municipal utility system fails to follow the process 22
	215	+	established in the utility accommodation rules or the relocation agreement to 23
	216	+	complete a relocation within the time period stated in the relocation 24
	217	+	agreement, the department may relocate the utility facility that is the 25
	218	+	subject of the relocation agreement. 26
	219	+	(2) If the department relocates a utility facility under 27
	220	+	subdivision (f)(1) of this section, the department may enter into a contract 28
	221	+	to complete the engineering, relocation, or other work required to relocate 29
	222	+	the utility facility of a municipal utility system after providing written 30
	223	+	notice to the municipal utility system. 31
	224	+	(3)(A)(i) If within ten (10) days of the receipt of written 32
	225	+	notice from the department under subdivision (f)(2) of this section, the 33
	226	+	municipal utility system provides the department with a list of three (3) or 34
	227	+	more approved engineers and three (3) or more approved contractors to perform 35
	228	+	the relocation or design specifications for the utility facility that is to 36 SB492
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	231	+	be relocated, the department shall enter into a contract only with an 1
	232	+	engineer or contractor contained in the list to perform the relocation. 2
	233	+	(ii) The department shall not enter into a contract 3
	234	+	with an engineer or contractor who does not comply with the procurement 4
	235	+	process of the department. 5
	236	+	(B) If within ten (10) days of the receipt of written 6
	237	+	notice from the department under subdivision (f)(2) of this section, the 7
	238	+	municipal utility system provides the department with design specifications 8
	239	+	for the utility facility that is to be relocated, then the department shall 9
	240	+	require compliance with the design specifications in the contract for the 10
	241	+	relocation. 11
	242	+	(4) A contract entered into by the department to relocate a 12
	243	+	utility facility of a municipal utility system under this subsection shall 13
	244	+	identify the municipal utility system as the beneficiary of the contract. 14
	245	+	(5) A municipal utility system that has entered into a contract 15
	246	+	with the department to relocate a utility system of the municipal utility 16
	247	+	system under this subsection may: 17
	248	+	(A) Inspect the relocation of the utility facility; 18
	249	+	(B) Inspect an underground utility facility before it is 19
	250	+	covered; and 20
	251	+	(C) Pursue a claim against a person or entity other than 21
	252	+	the department based on the relocation of the utility facility whether 22
	253	+	provided under the contract with the department or by law. 23
	254	+	(6) Within ninety (90) days of the receipt of a written invoice 24
	255	+	from the department for the cost of a relocation under this subsection, a 25
	256	+	municipal utility system shall: 26
	257	+	(A) Pay to the department the non -reimbursable portion of 27
	258	+	the cost of the relocation that the municipal utility system does not 28
	259	+	dispute; and 29
	260	+	(B) Enter into a dispute resolution process with the 30
	261	+	department for any disputed portion of the invoice. 31
	262	+	(7) If a municipal utility system fails to comply with 32
	263	+	subdivision (f)(6) of this section, the department may offset and collect the 33
	264	+	amount owed by the municipal utility system from any funds administered by 34
	265	+	the department for disbursement to the municipality, including without 35
	266	+	limitation turnback and state aid street funds that may be lawfully applied 36 SB492
124	267
125		-	(2) When negotiating the relocation agreement under subdivision 1
126		-	(b)(1) of this section, the: 2
127		-	(A) Department shall: 3
128		-	(i) Provide written notice to the utility of the 4
129		-	need for the relocation located on the public transportation facility that 5
130		-	shall include: 6
131		-	(a) Plans that clearly identify all known 7
132		-	utilities that own a utility facility that is subject to relocation; 8
133		-	(b) The area of the public transportation 9
134		-	facility the department or commission intends to acquire for the project; and 10
135		-	(c) The proposed right -of-way acquisition and 11
136		-	timeline; 12
137		-	(ii) Provide to the utility the construction plans 13
138		-	for the project that demonstrate the need for the relocation; 14
139		-	(iii) Establish a reasonable date for the submission 15
140		-	of a relocation proposal; 16
141		-	(iv) Coordinate a relocation agreement for the work 17
142		-	to be performed by the utility, including a schedule for the relocation; and 18
143		-	(v) Issue a notice to proceed to the utility to 19
144		-	begin the relocation upon execution of a relocation agreement; and 20
145		-	(B) Utility shall: 21
146		-	(i) Submit to the department a relocation proposal 22
147		-	in accordance with the utility accommodation rules that includes without 23
148		-	limitation: 24
149		-	(a) A plan for the relocation in accordance 25
150		-	with the construction plans for the project provided by the department as 26
151		-	required under subdivision (b)(2)(A)(ii); 27
152		-	(b) A reasonable schedule for the completion 28
153		-	of the relocation; 29
154		-	(c) Reasonable cost estimates for the 30
155		-	relocation; and 31
156		-	(d) A final date all work will be complete for 32
157		-	the relocation; 33
158		-	(ii) Begin and complete the relocation within the 34
159		-	time frame specified in the relocation agreement negotiated under subdivision 35
160		-	(b)(1) of this section; and 36 As Engrossed: S4/7/25 SB492
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	269	+	to the relocation costs. 1
	270	+	(g) A municipal utility system may agree to the relocation of a 2
	271	+	utility facility of the municipal utility system by the department using the 3
	272	+	process provided in subsection (f) of this section. 4
	273	+	(h)(1) The department shall not act under subsection (d) or subsection 5
	274	+	(f) of this section if an extraordinary event prevents the completion of a 6
	275	+	relocation within the time frame specified in the relocation agreement. 7
	276	+	(2) If an extraordinary event occurs under subdivision (h)(1) of 8
	277	+	this section, the utility shall provide the department with a: 9
	278	+	(A) Written notice of the extraordinary event; and 10
	279	+	(B) Revised relocation proposal and schedule under 11
	280	+	subdivision (b)(2)(B)(i) of this section. 12
	281	+	(3) Upon receipt of a written notice under subdivision (h)(2) of 13
	282	+	this section, the department shall issue a modification to the relocation 14
	283	+	agreement reflecting a new date for the completion of the relocation as 15
	284	+	determined by the department. 16
	285	+	(i) The department shall promulgate rules for the implementation of 17
	286	+	this section. 18
	287	+	19
	288	+	27-67-326. Relocation of utility facility — Rules. 20
	289	+	(a)(1) Utility accommodation rules adopted by the State Highway 21
	290	+	Commission concerning relocation under § 27 -67-325 shall include without 22
	291	+	limitation the relocation coordination process between the Arkansas 23
	292	+	Department of Transportation and the utility. 24
	293	+	(2) Rules concerning the relocation coordination process between 25
	294	+	the department and the utility shall include without limitation that: 26
	295	+	(A) The department shall schedule a meeting with the owner 27
	296	+	of the utility facility at a time mutually convenient for both parties; and 28
	297	+	(B) Before a meeting under subdivision (a)(2)(A) of this 29
	298	+	section, the department shall provide the owner of the utility facility with 30
	299	+	plans for a proposed relocation. 31
	300	+	(3) The plans for a proposed relocation under subdivision 32
	301	+	(a)(2)(B) of this section shall: 33
	302	+	(A) Clearly indicate: 34
	303	+	(i) All identified existing utilities affected by 35
	304	+	the relocation; and 36 SB492
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	307	+	(ii) The right-of-way the department intends to 1
	308	+	acquire for the relocation; and 2
	309	+	(B) Use criteria that satisfy Subsurface Utility 3
	310	+	Engineering Quality Level C or better. 4
	311	+	(4) During a meeting under subdivision (a)(2)(A) of this 5
	312	+	section, the department and the owner of the utility facility shall: 6
	313	+	(A) Identify the scope of utility facilities that will be 7
	314	+	subject to relocation; 8
	315	+	(B) Discuss: 9
	316	+	(i) Proposed arrangements for the relocation, 10
	317	+	including any right-of-way provided by the department for relocation; 11
	318	+	(ii) The expected cost of the relocation; and 12
	319	+	(iii) A deadline by which the owner of the utility 13
	320	+	facility shall submit a relocation proposal to the department; and 14
	321	+	(C) Agree upon the number of days required for the 15
	322	+	relocation. 16
	323	+	(5)(A) The department shall provide the utility with a written 17
	324	+	report summarizing the decisions made and agreements reached during the 18
	325	+	meeting held under subdivision (a)(2)(A) of this section. 19
	326	+	(B) The report provided under subdivision (a)(5)(A) of 20
	327	+	this section shall serve as the basis for the relocation proposal. 21
	328	+	(b)(1) The rules promulgated by the department concerning a relocation 22
	329	+	under § 27-67-325 shall include without limitation: 23
	330	+	(A) The process for the creation of a relocation proposal 24
	331	+	and relocation agreement; and 25
	332	+	(B) The procedure for the reimbursement of the costs of a 26
	333	+	relocation. 27
	334	+	(2) The rules for a relocation proposal shall include without 28
	335	+	limitation that a relocation proposal: 29
	336	+	(A) Be provided to each party in written form; 30
	337	+	(B) Be signed by the authorized representatives of the 31
	338	+	department and the utility; and 32
	339	+	(C) Include: 33
	340	+	(i) The plan for the relocation; 34
	341	+	(ii) The schedule for the utility to complete the 35
	342	+	relocation; 36 SB492
163	343
164		-
165		-	(iii) Submit a progress report every two (2) months 1
166		-	to the department regarding the status of the relocation after a notice to 2
167		-	proceed is issued under subdivision (c)(1) of this section until the 3
168		-	relocation is complete. 4
169		-	(c)(1) After a relocation agreement is executed under this section, 5
170		-	the department shall issue a notice to proceed with the relocation to the 6
171		-	owner of the utility facility that is the subject of the relocation 7
172		-	agreement. 8
173		-	(2) A notice to proceed issued under subdivision (c)(1) of this 9
174		-	section serves as the formal authorization for the utility to commence work 10
175		-	on the relocation in accordance with terms of the relocation agreement. 11
176		-	(d)(1) If a utility other than a municipal utility system fails to 12
177		-	follow the process established in the utility accommodation rules or the 13
178		-	relocation agreement to complete the relocation within the time period stated 14
179		-	in the relocation agreement, the department may assess and collect a civil 15
180		-	penalty from a utility other than a municipal utility system after: 16
181		-	(A) The department provides notice to the utility under 17
182		-	subdivision (e)(2)(A) of this section; and 18
183		-	(B) The expiration of a thirty -day time period for the 19
184		-	utility to comply with the requirements stated in the utility accommodation 20
185		-	rules or the relocation agreement. 21
186		-	(2) The civil penalty authorized under subdivision (d)(1) of 22
187		-	this section shall be five hundred dollars ($500) for each business day the 23
188		-	utility fails to: 24
189		-	(A) Respond to the written notice to the utility of the 25
190		-	need for the relocation located on the public transportation facility 26
191		-	provided under subdivision (b)(2)(A)(i) of this section; 27
192		-	(B) Enter into negotiations for a relocation agreement 28
193		-	between the department and the utility; or 29
194		-	(C)(i) Comply with a relocation agreement to which the 30
195		-	utility is a party, including completing the work according to the schedule 31
196		-	in the relocation agreement. 32
197		-	(ii) A civil penalty shall not be assessed under 33
198		-	this subdivision (d)(2)(C) if the utility does not meet the agreed -upon 34
199		-	schedule but meets the final relocation completion date in the relocation 35
200		-	agreement. 36 As Engrossed: S4/7/25 SB492
201		-
202		-	6 04-07-2025 20:00:57 ZRC016
203		-
204		-
205		-	(iii) A civil penalty may be assessed under this 1
206		-	subdivision (d)(2)(C) if a utility fails to: 2
207		-	(a) Act in good faith to comply with the 3
208		-	relocation agreement; or 4
209		-	(b) Request a reasonable modification of the 5
210		-	schedule. 6
211		-	(e)(1) A civil penalty shall not be assessed under subsection (d) for 7
212		-	a delay that is the result of: 8
213		-	(A) An extraordinary event; 9
214		-	(B) Excavation that damages an underground utility 10
215		-	facility for which: 11
216		-	(i) The owner of the utility facility was not 12
217		-	provided notice of the intent to excavate; or 13
218		-	(ii) The utility facility was not located and marked 14
219		-	properly under the Arkansas Underground Facilities Damage Prevention Act, § 15
220		-	14-271-101 et seq.; or 16
221		-	(C) A delay in acquiring right -of-way after a good faith 17
222		-	effort by the utility to complete the acquisition of the right -of-way. 18
223		-	(2)(A) The department shall give a utility written notice of the 19
224		-	intent to assess a civil penalty under this subsection and an opportunity to 20
225		-	appeal the department’s decision and show cause why the civil penalty should 21
226		-	not be assessed. 22
227		-	(B) Upon a finding that a civil penalty should be assessed 23
228		-	under subsection (d) of this section , the department shall issue an 24
229		-	appropriate order to the utility. 25
230		-	(C) If a civil penalty has not been paid in full within 26
231		-	ninety (90) days after the entry of an order under subdivision (e)(3)(B) of 27
232		-	this section, the civil penalty may be: 28
233		-	(i) Deducted from the final reimbursement payment by 29
234		-	the department to the utility; or 30
235		-	(ii) Subject to a collection action. 31
236		-	(3) An appeal of a decision to assess a civil penalty under this 32
237		-	subsection (e) shall be in accordance with the utility accommodation rules 33
238		-	and the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 34
239		-	(4) Moneys collected as civil penalties under this subsection 35
240		-	(e) shall be paid into the State Highway and Transportation Department Fund 36 As Engrossed: S4/7/25 SB492
241		-
242		-	7 04-07-2025 20:00:57 ZRC016
243		-
244		-
245		-	and designated for use in a utility relocation grant and loan program to be 1
246		-	established by the department for the purpose of providing a grant or loan to 2
247		-	a small utility for a relocation that is nonreimbursable. 3
248		-	(f)(1) If a municipal utility system fails to follow the process 4
249		-	established in the utility accommodation rules or the relocation agreement to 5
250		-	complete a relocation within the time period stated in the relocation 6
251		-	agreement, the department may relocate the utility facility that is the 7
252		-	subject of the relocation agreement. 8
253		-	(2) If the department relocates a utility facility under 9
254		-	subdivision (f)(1) of this section, the department may enter into a contract 10
255		-	to complete the engineering, relocation, or other work required to relocate 11
256		-	the utility facility of a municipal utility system after providing written 12
257		-	notice to the municipal utility system. 13
258		-	(3)(A)(i) If within ten (10) days of the receipt of written 14
259		-	notice from the department under subdivision (f)(2) of this section, the 15
260		-	municipal utility system provides the department with a list of three (3) or 16
261		-	more approved engineers and three (3) or more approved contractors to perform 17
262		-	the relocation or design specifications for the utility facility that is to 18
263		-	be relocated, the department shall enter into a contract only with an 19
264		-	engineer or contractor contained in the list to perform the relocation. 20
265		-	(ii) The department shall not enter into a contract 21
266		-	with an engineer or contractor who does not comply with the procurement 22
267		-	process of the department. 23
268		-	(B) If within ten (10) days of the receipt of written 24
269		-	notice from the department under subdivision (f)(2) of this section, the 25
270		-	municipal utility system provides the department with design specifications 26
271		-	for the utility facility that is to be relocated, then the department shall 27
272		-	require compliance with the design specifications in the contract for the 28
273		-	relocation. 29
274		-	(4) A contract entered into by the department to relocate a 30
275		-	utility facility of a municipal utility system under this subsection shall 31
276		-	identify the municipal utility system as the beneficiary of the contract. 32
277		-	(5) A municipal utility system that has entered into a contract 33
278		-	with the department to relocate a utility system of the municipal utility 34
279		-	system under this subsection may: 35
280		-	(A) Inspect the relocation of the utility facility; 36 As Engrossed: S4/7/25 SB492
281		-
282		-	8 04-07-2025 20:00:57 ZRC016
283		-
284		-
285		-	(B) Inspect an underground utility facility before it is 1
286		-	covered; and 2
287		-	(C) Pursue a claim against a person or entity other than 3
288		-	the department based on the relocation of the utility facility whether 4
289		-	provided under the contract with the department or by law. 5
290		-	(6) Within ninety (90) days of the receipt of a written invoice 6
291		-	from the department for the cost of a relocation under this subsection, a 7
292		-	municipal utility system shall: 8
293		-	(A) Pay to the department the non -reimbursable portion of 9
294		-	the cost of the relocation that the municipal utility system does not 10
295		-	dispute; and 11
296		-	(B) Enter into a dispute resolution process with the 12
297		-	department for any disputed portion of the invoice. 13
298		-	(7) If a municipal utility system fails to comply with 14
299		-	subdivision (f)(6) of this section, the department may offset and collect the 15
300		-	amount owed by the municipal utility system from any funds administered by 16
301		-	the department for disbursement to the municipality, including without 17
302		-	limitation turnback and state aid street funds that may be lawfully applied 18
303		-	to the relocation costs. 19
304		-	(g) A municipal utility system may agree to the relocation of a 20
305		-	utility facility of the municipal utility system by the department using the 21
306		-	process provided in subsection (f) of this section. 22
307		-	(h)(1) The department shall not act under subsection (d) or subsection 23
308		-	(f) of this section if an extraordinary event prevents the completion of a 24
309		-	relocation within the time frame specified in the relocation agreement. 25
310		-	(2) If an extraordinary event occurs under subdivision (h)(1) of 26
311		-	this section, the utility shall provide the department with a: 27
312		-	(A) Written notice of the extraordinary event; and 28
313		-	(B) Revised relocation proposal and schedule under 29
314		-	subdivision (b)(2)(B)(i) of this section. 30
315		-	(3) Upon receipt of a written notice under subdivision (h)(2) of 31
316		-	this section, the department shall issue a modification to the relocation 32
317		-	agreement reflecting a new date for the completion of the relocation as 33
318		-	determined by the department. 34
319		-	(i) The department shall promulgate rules for the implementation of 35
320		-	this section. 36 As Engrossed: S4/7/25 SB492
321		-
322		-	9 04-07-2025 20:00:57 ZRC016
323		-
324		-
325		-	1
326		-	27-67-326. Relocation of utility facility — Rules. 2
327		-	(a)(1) Utility accommodation rules adopted by the State Highway 3
328		-	Commission concerning relocation under § 27 -67-325 shall include without 4
329		-	limitation the relocation coordination process between the Arkansas 5
330		-	Department of Transportation and the utility. 6
331		-	(2) Rules concerning the relocation coordination process between 7
332		-	the department and the utility shall include without limitation that: 8
333		-	(A) The department shall schedule a meeting with the owner 9
334		-	of the utility facility at a time mutually convenient for both parties; and 10
335		-	(B) Before a meeting under subdivision (a)(2)(A) of this 11
336		-	section, the department shall provide the owner of the utility facility with 12
337		-	plans for a proposed relocation. 13
338		-	(3) The plans for a proposed relocation under subdivision 14
339		-	(a)(2)(B) of this section shall: 15
340		-	(A) Clearly indicate: 16
341		-	(i) All identified existing utilities affected by 17
342		-	the relocation; and 18
343		-	(ii) The right-of-way the department intends to 19
344		-	acquire for the relocation; and 20
345		-	(B) Use criteria that satisfy Subsurface Utility 21
346		-	Engineering Quality Level C or better. 22
347		-	(4) During a meeting under subdivision (a)(2)(A) of this 23
348		-	section, the department and the owner of the utility facility shall: 24
349		-	(A) Identify the scope of utility facilities that will be 25
350		-	subject to relocation; 26
351		-	(B) Discuss: 27
352		-	(i) Proposed arrangements for the relocation, 28
353		-	including any right-of-way provided by the department for relocation; 29
354		-	(ii) The expected cost of the relocation; and 30
355		-	(iii) A deadline by which the owner of the utility 31
356		-	facility shall submit a relocation proposal to the department; and 32
357		-	(C) Agree upon the number of days required for the 33
358		-	relocation. 34
359		-	(5)(A) The department shall provide the utility with a written 35
360		-	report summarizing the decisions made and agreements reached during the 36 As Engrossed: S4/7/25 SB492
361		-
362		-	10 04-07-2025 20:00:57 ZRC016
363		-
364		-
365		-	meeting held under subdivision (a)(2)(A) of this section. 1
366		-	(B) The report provided under subdivision (a)(5)(A) of 2
367		-	this section shall serve as the basis for the relocation proposal. 3
368		-	(b)(1) The rules promulgated by the department concerning a relocation 4
369		-	under § 27-67-325 shall include without limitation: 5
370		-	(A) The process for the creation of a relocation proposal 6
371		-	and relocation agreement; and 7
372		-	(B) The procedure for the reimbursement of the costs of a 8
373		-	relocation. 9
374		-	(2) The rules for a relocation proposal shall include without 10
375		-	limitation that a relocation proposal: 11
376		-	(A) Be provided to each party in written form; 12
377		-	(B) Be signed by the authorized representatives of the 13
378		-	department and the utility; and 14
379		-	(C) Include: 15
380		-	(i) The plan for the relocation; 16
381		-	(ii) The schedule for the utility to complete the 17
382		-	relocation; 18
383		-	(iii) A cost estimate for the relocation; 19
384		-	(iv) Deadlines for the commencement and completion 20
385		-	of the relocation; and 21
386		-	(v) The estimated cost of reimbursement by the 22
387		-	department for the relocation. 23
388		-	(3)(A) The rules for a relocation agreement shall include that a 24
389		-	relocation agreement may be modified if: 25
390		-	(i) An extraordinary event occurs; and 26
391		-	(ii) Either party requests a modification to the 27
392		-	relocation agreement. 28
393		-	(B) The modification of a relocation agreement shall: 29
394		-	(i) Be documented in writing; 30
395		-	(ii) Include updated timelines, costs, or other 31
396		-	relevant terms; and 32
397		-	(iii) Be approved by both parties. 33
398		-	(4) Rules for the reimbursement of the costs for a relocation 34
399		-	shall include without limitation that the: 35
400		-	(A) Utility owner may submit an invoice for the 36 As Engrossed: S4/7/25 SB492
401		-
402		-	11 04-07-2025 20:00:57 ZRC016
403		-
404		-
405		-	reimbursement of costs to the department upon completion of the relocation; 1
406		-	(B) Invoice for the reimbursement of costs for the 2
407		-	relocation shall reflect all costs and expenses incurred by the utility for 3
408		-	the relocation; and 4
409		-	(C) Department shall pay a complete invoice submitted 5
410		-	under subdivision (b)(4)(A) of this section within ninety (90) days of 6
411		-	receipt of the complete invoice by the department. 7
412		-	8
413		-	/s/J. Bryant 9
414		-	10
415		-	11
416		-	APPROVED: 4/16/25 12
417		-	13
418		-	14
419		-	15
420		-	16
421		-	17
422		-	18
423		-	19
424		-	20
425		-	21
426		-	22
427		-	23
428		-	24
429		-	25
	344	+	10 03/17/2025 4:26:29 PM ZRC016
	345	+	(iii) A cost estimate for the relocation; 1
	346	+	(iv) Deadlines for the commencement and completion 2
	347	+	of the relocation; and 3
	348	+	(v) The estimated cost of reimbursement by the 4
	349	+	department for the relocation. 5
	350	+	(3)(A) The rules for a relocation agreement shall include that a 6
	351	+	relocation agreement may be modified if: 7
	352	+	(i) An extraordinary event occurs; and 8
	353	+	(ii) Either party requests a modification to the 9
	354	+	relocation agreement. 10
	355	+	(B) The modification of a relocation agreement shall: 11
	356	+	(i) Be documented in writing; 12
	357	+	(ii) Include updated timelines, costs, or other 13
	358	+	relevant terms; and 14
	359	+	(iii) Be approved by both parties. 15
	360	+	(4) Rules for the reimbursement of the costs for a relocation 16
	361	+	shall include without limitation that the: 17
	362	+	(A) Utility owner may submit an invoice for the 18
	363	+	reimbursement of costs to the department upon completion of the relocation; 19
	364	+	(B) Invoice for the reimbursement of costs for the 20
	365	+	relocation shall reflect all costs and expenses incurred by the utility for 21
	366	+	the relocation; and 22
	367	+	(C) Department shall pay a complete invoice submitted 23
	368	+	under subdivision (b)(4)(A) of this section within ninety (90) days of 24
	369	+	receipt of the complete invoice by the department. 25
430	370		26
431	371		27
432	372		28
433	373		29
434	374		30
435	375		31
436	376		32
437	377		33
438	378		34
439	379		35
440	380		36