Bill > HB542

This bill amends existing law to require the Alabama Department of Transportation (DOT) to reimburse certain utilities for the costs of relocating their facilities when necessitated by highway construction projects, with specific conditions and limitations. The bill defines key terms such as "cost of relocation," "distribution line" (electricity at less than 40,000 volts), "national system of interstate and defense highways," "transmission line" (electricity at 40,000 volts or more), and "utility" (including broadband, cable, and telecommunications providers). For projects on the interstate highway system, the state will cover relocation costs if eligible for federal reimbursement, with utilities repaying any difference between state payments and federal reimbursements. For other highway projects, utilities with gross incomes of $250 million or less are eligible for state reimbursement, also subject to repayment of federal funds. Beginning October 1, 2027, the bill mandates a minimum annual state expenditure of $20 million for utility relocations on non-interstate projects and establishes a new provision allowing reimbursement for utilities with gross incomes exceeding $250 million for these projects, capped at $10 million annually for all such utilities and $500,000 per individual relocation. The DOT is also required to report annually to the Legislature on utility relocation costs and reimbursements, and the bill clarifies that revised relocation orders after a project begins will be fully covered by the state.