Rhode Island Senate Bill S2587

Rhode Island 2024 Regular Session

• Introduced: 3/1/24
• Refer: 3/1/24

Caption

Utility relocation costs related to highway construction to be partially or fully paid for by the state.

Impact

If enacted, S2587 would significantly influence existing statutes regarding the financial responsibilities associated with utility relocations during state highway projects. The required reimbursements aim to streamline the relocation process, ultimately aiding project completion timelines and facilitating enhancements to highway infrastructure. By mandating state reimbursement at specified rates, the bill seeks to create a more predictable fiscal environment for utility operators as they navigate the logistical challenges posed by highway construction.

Summary

Senate Bill 2587 addresses the costs associated with the relocation of utility facilities necessitated by highway construction. This legislation stipulates that the state will reimburse private corporations and companies for 50% of the reasonable costs incurred during such relocations, while fully covering costs for municipalities and political subdivisions. The intent of this bill is to provide fiscal relief during highway projects, ensuring that utility companies can comply with relocation demands without facing significant financial burdens. This reimbursement mechanism is applicable only under certain conditions, including that relocations must meet state satisfaction and be completed within established timelines.

Contention

The bill may face contention amongst stakeholders primarily focusing on the allocation of financial responsibilities. Proponents argue that co-sharing costs will encourage efficient construction and timely utility relocations, while opponents may raise concerns about the potential economic impact on the state budget. Moreover, discussions around whether the proposed reimbursement rates are adequate or excessive may further complicate support for the bill. The impact of state-funded utility relocations raises broader questions about fiscal responsibility, particularly in relation to future highway projects and related financing.