SB 691 — Authorizing DOH to provide reimbursement for timely relocation of utilities

WESTSB691 VIRGINIAHEPW LEGISLATUREAM. REGULAR SESSION Committee Substitute for Senate Bill 691 BYSENATORM.

AYNARD#1 [Reported3-9Casto February3264The 23, 2026, from the Committee on TransportationEnergy and Infrastructure]Public CSWorks formoved SB 691 A BILL to amend and reenact §17-4-17b of the Codebill ofby Weststriking Virginia,out 1931,everything asafter amended, relating to authorizing the Divisionenacting ofclause Highwaysand toinserting providein reimbursementlieu forthereof the timelyfollowing:  relocationARTICLE of4. utilities.

Be it enacted by the Legislature of West Virginia:

ARTICLE 4.

  §17-4-17b.

  (a) Whenever the division reasonably determines that any public utility line or facility located upon, across, or under any portion of a state highway needs to be removed, relocated, or adjusted in order to accommodate a highway project, the division shall give to the utility reasonable notice in writing as mutually agreed, but not to exceed 18 months, directing it to begin the physical removal, relocation, or adjustment of such utility obstruction or interference at the cost of the utility, including construction inspection costs and in compliance with the rules of the division and the provisions of §29A-3-1 et seq.

of this code.code.(b) If the notice is in conjunction with a highway improvement project, it will be provided at the date of advertisement or award.

(b)Prior Ifto the notice isdirecting inthe conjunctionphysical withremoval, relocation, or adjustment of a utility line or facility, the utility shall adhere to the division’s utility relocation procedures for public road improvements which shall include, but not be limited to, the following:(1) The division will submit to the utility a letter and a set of plans for the proposed highway improvement project,project;(2) itThe willutility bemust providedwithin ata reasonable time submit to the datedivision a written confirmation acknowledging receipt of advertisementthe plans and a declaration of whether or award.not its facilities are within the proposed project limits and the extent to which the facilities are in conflict with the project;(3) If the utility is adjusting, locating, or relocating facilities or lines from or into the division’s right-of-way, the utility must submit to the division plans showing existing and proposed locations of utility facilities;(4) The utility’s submission shall include with the plans a work plan demonstrating that the utility adjustment, location, or relocation will be accomplished in a manner and time frame established by the division’s written procedures and instructions.

Prior to the notice directing the physical removal, relocation, or adjustment of a utility line or facility, the utility shall adhere to the division’s utility relocation procedures for public road improvements which shall include, but not be limited to, the following:

(1) The division will submit to the utility a letter and a set of plans for the proposed highway improvement project;

(2) The utility must within a reasonable time submit to the division a written confirmation acknowledging receipt of the plans and a declaration of whether or not its facilities are within the proposed project limits and the extent to which the facilities are in conflict with the project;

(3) If the utility is adjusting, locating, or relocating facilities or lines from or into the division’s right-of-way, the utility must submit to the division plans showing existing and proposed locations of utility facilities;

CS for SB 691 (4) The utility’s submission shall include with the plans a work plan demonstrating that the utility adjustment, location, or relocation will be accomplished in a manner and time frame established by the division’s written procedures and instructions.

The division will review the work plan to ensure compliance with the proposed improvement plans and schedule.schedule.(c) If additional utility removal, relocation, or adjustment work is found necessary after the letting date of the highway improvement project, the utility shall provide a revised work plan within 30 calendar days after receipt of the division’s written notification of the additional work.

(c) If additional utility removal, relocation, or adjustment work is found necessary after the letting date of the highway improvement project, the utility shall provide a revised work plan within 30 calendar days after receipt of the division’s written notification of the additional work.

The division shall reimburse the utility for work performed by the utility that must be performed again as the result of a plan change on the part of the division.(d) Should the utility fail to comply with the notice to remove, relocate, or adjust, the utility is liable to the division for direct contract damages, including costs, fees, penalties, or other contract charges, for which the division is proven to be liable to a contractor caused by the utility’s failure to timely remove, relocate, or adjust, unless a written extension is granted by the division.

(d)The Shouldutility theshall utilitynot failbe liable for any delay or other failure to comply with thea notice to remove, relocate, or adjust,adjust that is not solely the utilityfault isof liablethe toutility, including, but not limited to, the following:(1) The division forhas directnot contractperformed damages,its includingobligations costs,in fees,accordance penalties,with the division’s rules;(2) The division has not obtained all necessary rights-of-way that affect the utility;(3) The delay or other contractfailure charges,to forcomply whichby the divisionutility is provendue to bethe liabledivision’s failure to amanage contractorschedules causedand bycommunicate with the utility’sutility;(4) failureThe division seeks to timelyimpose remove,liability relocate,on the utility based solely upon oral communications or adjust,communications unlessnot adirected writtento extensionthe isutility’s granteddesignated bycontact person;(5) The division changes construction plans in any manner following the division.notice to remove or relocate and the change affects the utility’s facilities;

Theor(6) utilityOther shallgood cause, beyond the control of and not bethe liablefault forof anythe delayutility, including, but not limited to, labor disputes, unavailability of materials on a national level, act of God, or otherextreme failureweather conditions.(e) In order to complyavoid construction delays and to create an efficient and effective highway program, the division may schedule program meetings with the public utility on a noticequarterly basis to remove,assure relocate,that schedules are maintained.(f) If a utility that is required by law to bear all or adjusta portion of its own relocation costs elects to pursue a reimbursement agreement with the division pursuant to this subsection and provides the division with sufficient evidence to demonstrate that the utility is not solelyadequately staffed, equipped, or capitalized to perform such relocation work with its own forces or contractors at a time convenient to and in coordination with the faultassociated ofhighway project, the utility,division may pay for the associated relocation costs, including, but not limited to, design engineering, design review, construction, and inspection costs, out of the following:State Road Fund:

(1) The division has not performed its obligations in accordance with the division’s rules;

(2) The division has not obtained all necessary rights-of-way that affect the utility;

(3) The delay or other failure to comply by the utility is due to the division’s failure to manage schedules and communicate with the utility;

CS for SB 691 (4) The division seeks to impose liability on the utility based solely upon oral communications or communications not directed to the utility’s designated contact person;

(5) The division changes construction plans in any manner following the notice to remove or relocate and the change affects the utility’s facilities;

or (6) Other good cause, beyond the control of and not the fault of the utility, including, but not limited to, labor disputes, unavailability of materials on a national level, act of God, or extreme weather conditions.

(e) In order to avoid construction delays and to create an efficient and effective highway program, the division may schedule program meetings with the public utility on a quarterly basis to assure that schedules are maintained.

(f) If a utility that is required by law to bear all or a portion of its own relocation costs elects to pursue a reimbursement agreement with the division pursuant to this subsection and provides the division with sufficient evidence to demonstrate that the utility is not adequately staffed, equipped, or capitalized to perform such relocation work with its own forces or contractors at a time convenient to and in coordination with the associated highway project, the division may pay for the associated relocation costs, including, but not limited to, design engineering, design review, construction, and inspection costs, out of the State Road Fund:

(1) (1) Preliminary engineering design work associated with utility relocations to be paid for by the division pursuant to a reimbursement agreement shall be completed by any of the following methods:methods:(A) The division’s or the utility’s internal forces;

CS for SB 691 (A) The division’s or the utility’s internal forces;

oror(C) (C) Inclusion as part of the highway construction contract let by the division as agreed to by the utility:

Provided, That the subcontractor performing the preliminary engineering design work associated with the relocation is pre-approved by the utility.utility.(2)  Utility relocation construction work paid for by the division pursuant to a reimbursement agreement shall be completed by either of the following methods:(A) A contract awarded by the division to the lowest qualified bidder based on an appropriate competitive solicitation:

(2) Utility relocation construction work paid for by the division pursuant to a reimbursement agreement shall be completed by either of the following methods:

(A) A contract awarded by the division to the lowest qualified bidder based on an appropriate competitive solicitation:

or (B) (B) Inclusion as part of the highway construction contract let by the division as agreed to by the utility:

Provided, That the subcontractor performing the utility relocation construction work is pre-approved by the utility.(3) All design and construction work paid for by the division pursuant to a reimbursement agreement is subject to the reasonable inspection and acceptance of the utility, whose acceptance shall not be unreasonably withheld, and shall be performed in accordance with the specifications and standards required by the utility.

(3)(4) All designrelocation and construction work paidperformed for by the division pursuant to a reimbursement agreement isshall subjectconform to theapplicable reasonablestate inspection and acceptancefederal laws or regulations.(5) The provisions of thethis utility,subsection whoseare acceptancecompletely voluntary and shall not be unreasonablyinterpreted withheld,to andrequire shallany beutility performedto inenter accordanceinto a reimbursement agreement with the specificationsdivision andor standardsavail requireditself byof the utility.options authorized by this subsection.

(4) All relocation work performed pursuant to a reimbursement agreement shall conform to applicable state and federal laws or regulations.

(5) The provisions of this subsection are completely voluntary and shall not be interpreted to require any utility to enter into a reimbursement agreement with the division or avail itself of the options authorized by this subsection.

of this code and the division may promulgate emergency rules pursuant to the provisions of §29A-3-15 of this code in order to comply with this subsection.subsection.(g) Notwithstanding other provisions of this section,(1) Where Federal highway funds are available to reimburse the cost of utility relocation, the commissioner of highways shall include within the cost of highway construction the cost of relocation necessarily incurred by any public utility, and any pipeline company subject to the jurisdiction of the federal energy regulatory commission, in relocating any public utility line, pipeline or facility.(2) Where Federal highway funds are not available to reimburse the cost of utility relocation, the division may, in its discretion, provide partial or full reimbursement for the relocation of a utility if the physical utility relocation is successfully completed to the satisfaction of the division on or prior to the deadline established by the division.

CSA forutility SBis 691not (g)eligible Notwithstandingto otherreceive provisionsany ofreimbursement pursuant to this section,subsection unless the division may,notifies the utility in itswriting discretion,of providethe partialfollowing:(A) orThat fullthe utility is eligible for reimbursement for theutility relocation ofat a utilityspecified iflocation theor physicallocations;(B) The deadline for completion of the utility relocationrelocation;(C) isThe successfullypercentage completedor monetary amount the division offers to provide for partial or full reimbursement at the satisfactiondivision’s ofproject expense if the divisionutility completes physical relocation at the location on or priorbefore to the deadline establishedset by the division.division;

Aand(D) utilityAdditional isrequirements, notif eligibleany, that the division specifies the utility must meet to receive anyreimbursement.(E) Any such reimbursement pursuantshall be subject to thisa subsectionwritten unlessagreement entered into by the division notifiesand the utility that specifies reimbursement terms in writingadvance of the following:relocation.