Alabama 2026 Regular Session

Alabama House Bill HB542

Introduced
3/3/26  
Refer
3/3/26  
Report Pass
3/17/26  
Refer
4/1/26  

Caption

Highways; Department of Transportation required to reimburse certain utilities for required facility relocation, subject to conditions

Impact

The bill outlines clear fiscal parameters for utility reimbursement, imposing limits that would create a predictable budgetary environment for the state while extending financial assistance to larger utilities. Starting October 1, 2027, the total annual amount reimbursed to qualifying utilities will not exceed ten million dollars, with any single utility's relocation costs capped at five hundred thousand dollars. This financial framework intends to add accountability within the reimbursement process, ensuring compliance and oversight concerning expenditures related to utility relocations during highway construction.

Summary

House Bill 542 seeks to amend the existing laws regarding the financial responsibilities of the state concerning utility relocations necessitated by highway construction. The bill specifically addresses the reimbursement process for utilities, particularly those with annual gross incomes over two hundred fifty million dollars. Under the proposals, these larger utilities would be eligible for reimbursements pertaining to their costs incurred during the relocation of their facilities as mandated by the Director of Transportation. This initiative aims to streamline the financial implications of utility relocations on state-parcelled highway projects.

Contention

While the bill aims to formalize and clarify the state’s responsibilities, it may spark debate regarding the financial burden placed on both the utilities and the state. Critics may argue that the reimbursement caps could limit the capacity of larger utilities to address necessary relocations properly, potentially impacting essential service delivery and infrastructure efficacy. The requirement for annual reporting by the Director of Transportation to the Legislature will provide transparency, but it will be crucial to monitor whether these measures efficiently address the complexities involved in utility relocation during road projects.

Companion Bills

No companion bills found.

Previously Filed As

AL HB606

Public highways; relocation of certain utility facilities associated with the construction of public highways, provided

AL SB285

Certificate of need; exclude new or expanded obstretric and psychiatric facilities from requirement

AL SB325

Alabama Youth Residential Facility Abuse Prevention Act; youth residential facilities, requirements to disclose allegations of abuse or neglect, further provided

AL SB340

Utilities; prohibitions on the disconnection of utility services under certain conditions, provided

AL HB14

Law enforcement, authorizes Attorney General or Governor to appoint interim police chief subject to certain conditions

AL SB3

Law enforcement, authorizes Attorney General or Governor to appoint interim police chief subject to certain conditions

AL SB311

Public highways; procedure for issuance of permit for access to state rights-of-way on public highways, further provided

AL SB230

SNAP benefits; require reimbursement to recipients for stolen benefits

AL SB51

Health insurers; to set a minimum reimbursement rate for ambulance services that are out-of-network.

AL HB569

Pet care; veterinarian or technician required to be at certain boarding and grooming facilities; civil penalty for violations

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