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Second Substitute S.B. 150

Senator Peter C. Knudson proposes to substitute the following bill:


             1     
UTILITIES IN HIGHWAY RIGHTS-OF-WAY

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Peter C. Knudson

             5      AN ACT RELATING TO TRANSPORTATION; PROVIDING CERTAIN DEFINITIONS;
             6      ALLOWING CERTAIN TELECOMMUNICATION PROVIDERS ACCESS TO
             7      RIGHTS-OF-WAY ON THE INTERSTATE HIGHWAY SYSTEM; AMENDING PROVISIONS
             8      RELATED TO THE USE OF HIGHWAY RIGHTS-OF-WAY BY UTILITY COMPANIES;
             9      AMENDING PERMIT FEE PROVISIONS; PROVIDING RULEMAKING; CREATING THE
             10      UTILITIES IN HIGHWAY RIGHTS-OF-WAY TASK FORCE; PROVIDING FOR
             11      MEMBERSHIP; DELINEATING RESPONSIBILITIES AND PROCEDURES; PROVIDING A
             12      REPORTING DATE; APPROPRIATING $39,500 FROM THE GENERAL FUND; MAKING
             13      TECHNICAL CORRECTIONS; PROVIDING AN EFFECTIVE DATE; AND PROVIDING A
             14      REPEAL DATE.
             15      This act affects sections of Utah Code Annotated 1953 as follows:
             16      AMENDS:
             17          72-1-201, as renumbered and amended by Chapter 270, Laws of Utah 1998
             18          72-6-116, as renumbered and amended by Chapter 270, Laws of Utah 1998
             19          72-7-102, as renumbered and amended by Chapter 270, Laws of Utah 1998
             20      ENACTS:
             21          72-7-108, Utah Code Annotated 1953
             22      This act enacts uncodified material.
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 72-1-201 is amended to read:
             25           72-1-201. Creation of Department of Transportation -- Functions, powers, duties,


             26      rights, and responsibilities.
             27          There is created the Department of Transportation which shall:
             28          (1) have the general responsibility for planning, research, design, construction,
             29      maintenance, security, and safety of state transportation systems;
             30          (2) provide administration for state transportation systems and programs;
             31          (3) implement the transportation policies of the state;
             32          (4) plan, develop, construct, and maintain state transportation systems that are safe,
             33      reliable, environmentally sensitive, and serve the needs of the traveling public, commerce, and
             34      industry;
             35          (5) establish standards and procedures regarding the technical details of administration of
             36      the state transportation systems as established by statute and administrative rule;
             37          (6) advise the governor and the Legislature about state transportation systems needs; [and]
             38          (7) coordinate with utility companies for the reasonable, efficient, and cost-effective
             39      installation, maintenance, operation, relocation, and upgrade of utilities within state highway
             40      rights-of-way; and
             41          [(7)] (8) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             42      make policy and rules for the administration of the department, state transportation systems, and
             43      programs.
             44          Section 2. Section 72-6-116 is amended to read:
             45           72-6-116. Regulation of utilities -- Relocation of utilities.
             46          (1) As used in this section:
             47          (a) "Cost of relocation" includes the entire amount paid by the utility company properly
             48      attributable to the relocation of the utility after deducting any increase in the value of the new
             49      utility and any salvage value derived from the old utility.
             50          (b) "Utility" includes [telephone] telecommunication, gas, electricity, cable television,
             51      water, [and] sewer, data, and video transmission lines, drainage and irrigation systems, and other
             52      similar utilities located in, on, along, across, over, through, or under any state highway.
             53          (c) "Utility company" means a privately, cooperatively, or publicly owned utility,
             54      including utilities owned by political subdivisions.
             55          (2) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             56      the department may make rules for the installation, construction, maintenance, repair, renewal,


             57      system upgrade, and relocation of all utilities.
             58          (b) (i) If the department determines under the rules established in this section that it is
             59      necessary that any utilities should be relocated, the utility company owning or operating the
             60      utilities shall relocate the utilities in accordance with this section and the order of the department.
             61          (ii) The cost of relocation in connection with the highway systems shall be paid by the
             62      department in all cases where:
             63          (A) proportionate reimbursement of the cost may be obtained by the state of Utah from the
             64      United States pursuant to the Federal-Aid Highway Act of 1956; and
             65          (B) the utility is owned or operated by a political subdivision whether or not federal
             66      reimbursement may be obtained.
             67          [(iii)] (3) [In case of any relocation of] If a utility is relocated, the utility company owning
             68      or operating the utility, its successors or assigns, may maintain and operate the utility, with the
             69      necessary appurtenances, in the new location.
             70          [(3)] (4) The cost of relocating a utility in connection with any project on a highway
             71      eligible for federal aid, or on the interstate system is a cost of highway construction.
             72          (5) (a) The department shall notify affected utility companies whenever the relocation of
             73      utilities is likely to be necessary because of a reconstruction project.
             74          (b) The notification shall be made during the preliminary design of the project or as soon
             75      as practical in order to minimize the number, costs, and delays of utility relocations.
             76          (c) A utility company notified under this Subsection (5) shall coordinate with the
             77      department and the department's contractor on the utility relocations, including the scheduling of
             78      the utility relocations.
             79          Section 3. Section 72-7-102 is amended to read:
             80           72-7-102. Excavations, structures, or objects prohibited within right-of-way except
             81      in accordance with law -- Permit and fee requirements -- Rulemaking -- Penalty for violation.
             82          (1) Except as provided in Subsection (2) and Section 54-4-15 , a person may not:
             83          (a) dig or excavate, within the right-of-way of any state highway, county road, or city
             84      street; or
             85          (b) place, construct, or maintain any approach road, driveway, pole, pipeline, conduit,
             86      sewer, ditch, culvert, billboard, advertising sign, or any other structure or object of any kind or
             87      character within the right-of-way.


             88          (2) (a) A highway authority having jurisdiction over the right-of-way may allow
             89      excavating, installation of utilities and other facilities or access under rules made by the highway
             90      authority and in compliance with federal, state, and local law as applicable.
             91          (b) (i) The rules may require a permit for any excavation or installation and may require
             92      a surety bond or other security.
             93          (ii) The application for a permit for excavation or installation on a state highway shall be
             94      accompanied by a fee established under Subsection (3).
             95          (iii) The permit may be revoked and the surety bond or other security may be forfeited for
             96      cause.
             97          (3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             98      department shall adopt a schedule of fees to be assessed for services provided in connection with
             99      issuing and administering a permit on a state highway under this section. The schedule of fees:
             100          (a) shall reflect the cost of services provided; and
             101          (b) may provide that the department bill for services reasonably incurred in connection
             102      with each permit.
             103          (4) Permit fees collected by the department under this section shall be deposited with the
             104      state treasurer and credited to the Transportation Fund.
             105          (5) (a) Except as provided in Section 72-7-108 , the department may not collect any fee that
             106      is not authorized in this section for utility access to a highway right-of-way.
             107          (b) h (i) h A highway authority, other than the department, may not collect any fee that is not
             108      cost-based for any utility access to a highway right-of-way.
             108a           h (ii) NOTHING IN THIS SECTION SHALL AFFECT THE AUTHORITY OF A MUNICIPALITY
             108b      UNDER SECTION 11-26-1 AND TITLE 10, CHAPTER 1, PART 3, MUNICIPAL ENERGY SALES AND USE
             108c      TAX ACT. h
             109          [(3)] (6) A person who violates the provisions of Subsection (1) is guilty of a class B
             110      misdemeanor.
             111          Section 4. Section 72-7-108 is enacted to read:
             112          72-7-108. Longitudinal telecommunication access in the interstate highway system
             113      -- Definitions -- Agreements -- Compensation -- Restrictions -- Rulemaking.
             114          (1) As used in this section:
             115          (a) "Longitudinal access" means access to or use of any part of a right-of-way of a highway
             116      on the interstate system that extends generally parallel to the right-of-way for a total of 30 or more
             117      linear meters.
             118          (b) "Telecommunication facility" means any telecommunication cable, line, fiber, wire,


             119      conduit, innerduct, access manhole, handhole, hut, pedestal, pole, box, transmitting equipment,
             120      receiving equipment, power equipment, or other equipment, system, and device used to transmit,
             121      receive, produce, or distribute via wireless, wireline, electronic, or optical signal for
             122      communication purposes.
             123          (2) (a) Except as provided in Subsection (4) the department may allow a
             124      telecommunication facility provider longitudinal access to the right-of-way of a highway on the
             125      interstate system for the installation, operation, and maintenance of a telecommunication facility.
             126          (b) The department shall enter into an agreement with a telecommunication facility
             127      provider and issue a permit before granting it any longitudinal access under this section.
             128          (i) Except as specifically provided by the agreement, a property interest in a right-of-way
             129      may not be granted under the provisions of this section.
             130          (ii) An agreement entered into by the department under this section shall specify the terms
             131      and conditions for the renegotiation of the agreement.
             132          (3) (a) The department shall require compensation from a telecommunication facility
             133      provider under this section for longitudinal access to the right-of-way of a highway on the
             134      interstate system.
             135          (b) The compensation charged shall be:
             136          (i) fair and reasonable;
             137          (ii) competitively neutral;
             138          (iii) nondiscriminatory;
             139          (iv) open to public inspection;
             140          (v) established to promote access by multiple telecommunication facility providers;
             141          (vi) established for zones of the state, with zones determined based upon factors that
             142      include population density, distance, numbers of telecommunication subscribers, and the impact
             143      upon private right-of-way users;
             144          (vii) established to encourage the deployment of digital infrastructure within the state; and
             145          (viii) set in accordance with Subsection (3)(c).
             146          (c) Beginning October 1, 1999 and in accordance with Title 63, Chapter 46a, Utah
             147      Administrative Rulemaking Act, the department shall establish a schedule of rates of compensation
             148      for any longitudinal access granted under this section.
             149          (4) The department may not grant any longitudinal access under this section that results


             150      in a significant compromise of the safe, efficient, and convenient use of the interstate system for
             151      the traveling public.
             152          (5) The department may not pay any cost of relocation of a telecommunication facility
             153      granted longitudinal access to the right-of-way of a highway on the interstate system under this
             154      section.
             155          (6) Monetary compensation collected by the department in accordance with this section
             156      shall be deposited with the state treasurer and credited to the Transportation Fund.
             157          (7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             158      department shall make rules:
             159          (a) governing the installation, operation, and maintenance of a telecommunication facility
             160      granted longitudinal access under this section;
             161          (b) specifying the procedures for establishing an agreement for longitudinal access for a
             162      telecommunication facility provider; and
             163          (c) providing for the relocation or removal of a telecommunication facility for:
             164          (i) needed changes to a highway on the interstate system;
             165          (ii) expiration of an agreement; or
             166          (iii) a breach of an agreement.
             167          (8) h (a) h Except for a right-of-way of a highway on the interstate system, nothing in this
             167a      section
             168      shall be construed to allow a highway authority to require compensation from a telecommunication
             169      facility provider for longitudinal access to the right-of-way of a highway under the highway
             170      authority's jurisdiction.
             170a           h (b) NOTHING IN THIS SECTION SHALL AFFECT THE AUTHORITY OF A MUNICIPALITY
             170b      UNDER SECTION 11-26-1 AND TITLE 10, CHAPTER 1, PART 3, MUNICIPAL ENERGY SALES AND USE
             170c      TAX ACT. h
             171          Section 5. Utilities in Highway Rights-of-Way Task Force -- Creation -- Membership
             172      -- Rules -- Compensation -- Staff.
             173          (1) (a) There is created the Utilities in Highway Rights-of-Way Task Force consisting of
             174      the following members:
             175          (i) five members of the Senate appointed by the president of the Senate, no more than three
             176      of whom may be from the same political party;
             177          (ii) seven members of the House of Representatives appointed by the speaker of the House
             178      of Representatives, no more than four of whom may be from the same political party;
             179          (iii) three members who represent telecommunication facility providers, at least one of
             180      whom shall represent a rural telecommunication facility provider;


             181          (iv) one member who represents an energy utility provider;
             182          (v) one member who represents special districts providing water utility services;
             183          (vi) the executive director of the Department of Transportation;
             184          (vii) one member who represents utility consumers; and
             185          (viii) one member appointed by the governor.
             186          (b) The members listed in Subsections (1)(a)(iii) through (vii) shall be appointed jointly
             187      by the president of the Senate and the speaker of the House of Representatives.
             188          (2) (a) The president of the Senate shall designate a member of the Senate appointed under
             189      Subsection (1)(a)(i) as a cochair of the task force.
             190          (b) The speaker of the House of Representatives shall designate a member of the House
             191      of Representatives appointed under Subsection (1)(a)(ii) as a cochair of the task force.
             192          (3) (a) A majority of the members of the task force constitute a quorum.
             193          (b) The action of a majority of the quorum constitutes the action of the task force.
             194          (4) (a) Salaries and expenses of the legislative members of the task force shall be paid in
             195      accordance with Section 36-2-2 and Legislative Joint Rule 15.03.
             196          (b) Members of the task force who are not legislators receive no additional compensation
             197      for their work associated with the task force.
             198          (5) The Office of Legislative Research and General Counsel shall provide staff support to
             199      the task force.
             200          Section 6. Duties -- Interim reports.
             201          During the 1999 interim the task force shall:
             202          (1) (a) study the following issues relating to the relocation of utilities in highway
             203      rights-of-way and recommend:
             204          (i) a process that provides uniform reimbursements for utility relocation in all state
             205      highway rights-of-way;
             206          (ii) a simple formula that determines the share of relocation reimbursements for both
             207      highway authorities and utility providers so that both will have an incentive to minimize the
             208      relocation costs; and
             209          (iii) methods to improve communication and coordination between the Department of
             210      Transportation and utility providers, especially notices and responses in the planning and design
             211      phases of projects; and


             212          (b) present a final report, including any proposed legislation, on the issues under this
             213      Subsection (1) to the Public Utilities and Technology Interim Committee and the Transportation
             214      Interim Committee before November 30, 1999;
             215          (2) (a) recommend a schedule of rates of compensation for the Department of
             216      Transportation to charge a telecommunication facility provider for longitudinal access to the
             217      right-of-way of a highway on the interstate system that is in accordance with Subsection
             218      72-7-108 (3)(b);
             219          (b) present a final report, including any proposed legislation, on the issues under this
             220      Subsection (2) to the Legislative Management Committee before September 1, 1999; and
             221          (3) study and report on any other related issues assigned to the task force by the Legislative
             222      Management Committee.
             223          Section 7. Appropriation.
             224          There is appropriated from the General Fund for fiscal year 1999-2000:
             225          (1) $6,000 to the Senate to pay for the compensation and expenses of senators on the task
             226      force;
             227          (2) $8,500 to the House of Representatives to pay for the compensation and expenses of
             228      representatives on the task force; and
             229          (3) $25,000 to the Office of Legislative Research and General Counsel to pay for staffing
             230      the task force.
             231          Section 8. Effective date.
             232          If approved by two-thirds of all the members elected to each house, this act takes effect
             233      upon approval by the governor, or the day following the constitutional time limit of Utah
             234      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             235      date of veto override.
             236          Section 9. Repeal date.
             237          Sections 5, 6, and 7 of this act are repealed November 30, 1999.


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