Stricken language would be deleted from and underlined language would be added to present law.
Act 699 of the Regular Session
*ZRC016* 04-07-2025 20:00:57 ZRC016
State of Arkansas As Engrossed: S4/7/25 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 As Engrossed: S4/7/25 SB492
2 04-07-2025 20:00:57 ZRC016
(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; and 27
(iv) Sidewalk or other pedestrian facility; 28
(4)(A) “Relocation” means the adjustment, removal, or relocation 29
of a utility facility determined by the Arkansas Department of Transportation 30
to be necessary or appropriate in connection with the construction or 31
reconstruction of a public transportation facility. 32
(B) "Relocation" includes without limitation: 33
(i) Removing and reinstalling a utility facility, 34
including a necessary temporary utility facility; 35
(ii) Moving, rearranging, or changing the type of 36 As Engrossed: S4/7/25 SB492
3 04-07-2025 20:00:57 ZRC016
existing utility facility; 1
(iii) Taking necessary safety and protective 2
measures; and 3
(iv) Constructing a replacement utility facility 4
that is functionally equivalent to an existing utility facility and necessary 5
for the continuous operation of the utility service, the project economy, or 6
the sequence of public transportation facility construction; 7
(5) "Relocation agreement" means a written agreement between the 8
department and a utility concerning a specific relocation; 9
(6) "Relocation proposal" means a formal written submission 10
prepared by a utility in response to a request from the department concerning 11
a specific relocation; 12
(7)(A) “Utility” means a private, public, or cooperative utility 13
that transmits or distributes communications, including without limitation 14
cable service and broadband service , electricity, gas, liquids, steam, or 15
sewerage by means of a utility facility. 16
(B) "Utility" does not include a railway or railroad 17
engaged in interstate commerce; 18
(8) “Utility accommodation rules” means the rules adopted by the 19
State Highway Commission and administered by the department that: 20
(A) Address the processes and procedures for a utility to 21
receive reimbursement for a relocation on public transportation facilities of 22
the commission; and 23
(B) Establish the process for permits for the placement of 24
utility facilities on public transportation facilities of the commission; and 25
(9) "Utility facility" means a line, facility, or system of a 26
utility that is used, is available for use, or was formerly used to transmit 27
or distribute communications, including without limitation cable service and 28
broadband service, electricity, gas, liquids, steam, water, or sewerage to 29
the public. 30
(b)(1) When a utility facility located on a public transportation 31
facility must be removed, relocated, or adjusted to accommodate a change to a 32
public transportation facility, the department and the utility shall 33
negotiate a relocation agreement establishing the reasonable schedule for 34
relocation and the duties of the department and the utility concerning the 35
relocation. 36 As Engrossed: S4/7/25 SB492
4 04-07-2025 20:00:57 ZRC016
(2) When negotiating the relocation agreement under subdivision 1
(b)(1) of this section, the: 2
(A) Department shall: 3
(i) Provide written notice to the utility of the 4
need for the relocation located on the public transportation facility that 5
shall include: 6
(a) Plans that clearly identify all known 7
utilities that own a utility facility that is subject to relocation; 8
(b) The area of the public transportation 9
facility the department or commission intends to acquire for the project; and 10
(c) The proposed right -of-way acquisition and 11
timeline; 12
(ii) Provide to the utility the construction plans 13
for the project that demonstrate the need for the relocation; 14
(iii) Establish a reasonable date for the submission 15
of a relocation proposal; 16
(iv) Coordinate a relocation agreement for the work 17
to be performed by the utility, including a schedule for the relocation; and 18
(v) Issue a notice to proceed to the utility to 19
begin the relocation upon execution of a relocation agreement; and 20
(B) Utility shall: 21
(i) Submit to the department a relocation proposal 22
in accordance with the utility accommodation rules that includes without 23
limitation: 24
(a) A plan for the relocation in accordance 25
with the construction plans for the project provided by the department as 26
required under subdivision (b)(2)(A)(ii); 27
(b) A reasonable schedule for the completion 28
of the relocation; 29
(c) Reasonable cost estimates for the 30
relocation; and 31
(d) A final date all work will be complete for 32
the relocation; 33
(ii) Begin and complete the relocation within the 34
time frame specified in the relocation agreement negotiated under subdivision 35
(b)(1) of this section; and 36 As Engrossed: S4/7/25 SB492
5 04-07-2025 20:00:57 ZRC016
(iii) Submit a progress report every two (2) months 1
to the department regarding the status of the relocation after a notice to 2
proceed is issued under subdivision (c)(1) of this section until the 3
relocation is complete. 4
(c)(1) After a relocation agreement is executed under this section, 5
the department shall issue a notice to proceed with the relocation to the 6
owner of the utility facility that is the subject of the relocation 7
agreement. 8
(2) A notice to proceed issued under subdivision (c)(1) of this 9
section serves as the formal authorization for the utility to commence work 10
on the relocation in accordance with terms of the relocation agreement. 11
(d)(1) If a utility other than a municipal utility system fails to 12
follow the process established in the utility accommodation rules or the 13
relocation agreement to complete the relocation within the time period stated 14
in the relocation agreement, the department may assess and collect a civil 15
penalty from a utility other than a municipal utility system after: 16
(A) The department provides notice to the utility under 17
subdivision (e)(2)(A) of this section; and 18
(B) The expiration of a thirty -day time period for the 19
utility to comply with the requirements stated in the utility accommodation 20
rules or the relocation agreement. 21
(2) The civil penalty authorized under subdivision (d)(1) of 22
this section shall be five hundred dollars ($500) for each business day the 23
utility fails to: 24
(A) Respond to the written notice to the utility of the 25
need for the relocation located on the public transportation facility 26
provided under subdivision (b)(2)(A)(i) of this section; 27
(B) Enter into negotiations for a relocation agreement 28
between the department and the utility; or 29
(C)(i) Comply with a relocation agreement to which the 30
utility is a party, including completing the work according to the schedule 31
in the relocation agreement. 32
(ii) A civil penalty shall not be assessed under 33
this subdivision (d)(2)(C) if the utility does not meet the agreed -upon 34
schedule but meets the final relocation completion date in the relocation 35
agreement. 36 As Engrossed: S4/7/25 SB492
6 04-07-2025 20:00:57 ZRC016
(iii) A civil penalty may be assessed under this 1
subdivision (d)(2)(C) if a utility fails to: 2
(a) Act in good faith to comply with the 3
relocation agreement; or 4
(b) Request a reasonable modification of the 5
schedule. 6
(e)(1) A civil penalty shall not be assessed under subsection (d) for 7
a delay that is the result of: 8
(A) An extraordinary event; 9
(B) Excavation that damages an underground utility 10
facility for which: 11
(i) The owner of the utility facility was not 12
provided notice of the intent to excavate; or 13
(ii) The utility facility was not located and marked 14
properly under the Arkansas Underground Facilities Damage Prevention Act, § 15
14-271-101 et seq.; or 16
(C) A delay in acquiring right -of-way after a good faith 17
effort by the utility to complete the acquisition of the right -of-way. 18
(2)(A) The department shall give a utility written notice of the 19
intent to assess a civil penalty under this subsection and an opportunity to 20
appeal the department’s decision and show cause why the civil penalty should 21
not be assessed. 22
(B) Upon a finding that a civil penalty should be assessed 23
under subsection (d) of this section , the department shall issue an 24
appropriate order to the utility. 25
(C) If a civil penalty has not been paid in full within 26
ninety (90) days after the entry of an order under subdivision (e)(3)(B) of 27
this section, the civil penalty may be: 28
(i) Deducted from the final reimbursement payment by 29
the department to the utility; or 30
(ii) Subject to a collection action. 31
(3) An appeal of a decision to assess a civil penalty under this 32
subsection (e) shall be in accordance with the utility accommodation rules 33
and the Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 34
(4) Moneys collected as civil penalties under this subsection 35
(e) shall be paid into the State Highway and Transportation Department Fund 36 As Engrossed: S4/7/25 SB492
7 04-07-2025 20:00:57 ZRC016
and designated for use in a utility relocation grant and loan program to be 1
established by the department for the purpose of providing a grant or loan to 2
a small utility for a relocation that is nonreimbursable. 3
(f)(1) If a municipal utility system fails to follow the process 4
established in the utility accommodation rules or the relocation agreement to 5
complete a relocation within the time period stated in the relocation 6
agreement, the department may relocate the utility facility that is the 7
subject of the relocation agreement. 8
(2) If the department relocates a utility facility under 9
subdivision (f)(1) of this section, the department may enter into a contract 10
to complete the engineering, relocation, or other work required to relocate 11
the utility facility of a municipal utility system after providing written 12
notice to the municipal utility system. 13
(3)(A)(i) If within ten (10) days of the receipt of written 14
notice from the department under subdivision (f)(2) of this section, the 15
municipal utility system provides the department with a list of three (3) or 16
more approved engineers and three (3) or more approved contractors to perform 17
the relocation or design specifications for the utility facility that is to 18
be relocated, the department shall enter into a contract only with an 19
engineer or contractor contained in the list to perform the relocation. 20
(ii) The department shall not enter into a contract 21
with an engineer or contractor who does not comply with the procurement 22
process of the department. 23
(B) If within ten (10) days of the receipt of written 24
notice from the department under subdivision (f)(2) of this section, the 25
municipal utility system provides the department with design specifications 26
for the utility facility that is to be relocated, then the department shall 27
require compliance with the design specifications in the contract for the 28
relocation. 29
(4) A contract entered into by the department to relocate a 30
utility facility of a municipal utility system under this subsection shall 31
identify the municipal utility system as the beneficiary of the contract. 32
(5) A municipal utility system that has entered into a contract 33
with the department to relocate a utility system of the municipal utility 34
system under this subsection may: 35
(A) Inspect the relocation of the utility facility; 36 As Engrossed: S4/7/25 SB492
8 04-07-2025 20:00:57 ZRC016
(B) Inspect an underground utility facility before it is 1
covered; and 2
(C) Pursue a claim against a person or entity other than 3
the department based on the relocation of the utility facility whether 4
provided under the contract with the department or by law. 5
(6) Within ninety (90) days of the receipt of a written invoice 6
from the department for the cost of a relocation under this subsection, a 7
municipal utility system shall: 8
(A) Pay to the department the non -reimbursable portion of 9
the cost of the relocation that the municipal utility system does not 10
dispute; and 11
(B) Enter into a dispute resolution process with the 12
department for any disputed portion of the invoice. 13
(7) If a municipal utility system fails to comply with 14
subdivision (f)(6) of this section, the department may offset and collect the 15
amount owed by the municipal utility system from any funds administered by 16
the department for disbursement to the municipality, including without 17
limitation turnback and state aid street funds that may be lawfully applied 18
to the relocation costs. 19
(g) A municipal utility system may agree to the relocation of a 20
utility facility of the municipal utility system by the department using the 21
process provided in subsection (f) of this section. 22
(h)(1) The department shall not act under subsection (d) or subsection 23
(f) of this section if an extraordinary event prevents the completion of a 24
relocation within the time frame specified in the relocation agreement. 25
(2) If an extraordinary event occurs under subdivision (h)(1) of 26
this section, the utility shall provide the department with a: 27
(A) Written notice of the extraordinary event; and 28
(B) Revised relocation proposal and schedule under 29
subdivision (b)(2)(B)(i) of this section. 30
(3) Upon receipt of a written notice under subdivision (h)(2) of 31
this section, the department shall issue a modification to the relocation 32
agreement reflecting a new date for the completion of the relocation as 33
determined by the department. 34
(i) The department shall promulgate rules for the implementation of 35
this section. 36 As Engrossed: S4/7/25 SB492
9 04-07-2025 20:00:57 ZRC016
1
27-67-326. Relocation of utility facility — Rules. 2
(a)(1) Utility accommodation rules adopted by the State Highway 3
Commission concerning relocation under § 27 -67-325 shall include without 4
limitation the relocation coordination process between the Arkansas 5
Department of Transportation and the utility. 6
(2) Rules concerning the relocation coordination process between 7
the department and the utility shall include without limitation that: 8
(A) The department shall schedule a meeting with the owner 9
of the utility facility at a time mutually convenient for both parties; and 10
(B) Before a meeting under subdivision (a)(2)(A) of this 11
section, the department shall provide the owner of the utility facility with 12
plans for a proposed relocation. 13
(3) The plans for a proposed relocation under subdivision 14
(a)(2)(B) of this section shall: 15
(A) Clearly indicate: 16
(i) All identified existing utilities affected by 17
the relocation; and 18
(ii) The right-of-way the department intends to 19
acquire for the relocation; and 20
(B) Use criteria that satisfy Subsurface Utility 21
Engineering Quality Level C or better. 22
(4) During a meeting under subdivision (a)(2)(A) of this 23
section, the department and the owner of the utility facility shall: 24
(A) Identify the scope of utility facilities that will be 25
subject to relocation; 26
(B) Discuss: 27
(i) Proposed arrangements for the relocation, 28
including any right-of-way provided by the department for relocation; 29
(ii) The expected cost of the relocation; and 30
(iii) A deadline by which the owner of the utility 31
facility shall submit a relocation proposal to the department; and 32
(C) Agree upon the number of days required for the 33
relocation. 34
(5)(A) The department shall provide the utility with a written 35
report summarizing the decisions made and agreements reached during the 36 As Engrossed: S4/7/25 SB492
10 04-07-2025 20:00:57 ZRC016
meeting held under subdivision (a)(2)(A) of this section. 1
(B) The report provided under subdivision (a)(5)(A) of 2
this section shall serve as the basis for the relocation proposal. 3
(b)(1) The rules promulgated by the department concerning a relocation 4
under § 27-67-325 shall include without limitation: 5
(A) The process for the creation of a relocation proposal 6
and relocation agreement; and 7
(B) The procedure for the reimbursement of the costs of a 8
relocation. 9
(2) The rules for a relocation proposal shall include without 10
limitation that a relocation proposal: 11
(A) Be provided to each party in written form; 12
(B) Be signed by the authorized representatives of the 13
department and the utility; and 14
(C) Include: 15
(i) The plan for the relocation; 16
(ii) The schedule for the utility to complete the 17
relocation; 18
(iii) A cost estimate for the relocation; 19
(iv) Deadlines for the commencement and completion 20
of the relocation; and 21
(v) The estimated cost of reimbursement by the 22
department for the relocation. 23
(3)(A) The rules for a relocation agreement shall include that a 24
relocation agreement may be modified if: 25
(i) An extraordinary event occurs; and 26
(ii) Either party requests a modification to the 27
relocation agreement. 28
(B) The modification of a relocation agreement shall: 29
(i) Be documented in writing; 30
(ii) Include updated timelines, costs, or other 31
relevant terms; and 32
(iii) Be approved by both parties. 33
(4) Rules for the reimbursement of the costs for a relocation 34
shall include without limitation that the: 35
(A) Utility owner may submit an invoice for the 36 As Engrossed: S4/7/25 SB492
11 04-07-2025 20:00:57 ZRC016
reimbursement of costs to the department upon completion of the relocation; 1
(B) Invoice for the reimbursement of costs for the 2
relocation shall reflect all costs and expenses incurred by the utility for 3
the relocation; and 4
(C) Department shall pay a complete invoice submitted 5
under subdivision (b)(4)(A) of this section within ninety (90) days of 6
receipt of the complete invoice by the department. 7
8
/s/J. Bryant 9
10
11
APPROVED: 4/16/25 12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36