MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Highways and Transportation

By: Senator(s) Little (By Request)

Senate Bill 2793

AN ACT TO PROVIDE THAT THE MISSISSIPPI TRANSPORTATION COMMISSION SHALL DETERMINE A SPECIFIC DATE BY WHICH UTILITIES OR OTHER ENCROACHMENTS SHALL BE REMOVED OR RELOCATED FROM THE RIGHT-OF-WAYS OF HIGHWAY PROJECTS AT THE TIME OF ADVERTISING FOR BIDS FOR A PROJECT; TO PROVIDE THAT THE COMMISSION SHALL NOTIFY THE OWNER OF THE UTILITIES OR OTHER ENCROACHMENT NOT LESS THAN 60 DAYS PRIOR TO SUCH DATE AND THE OWNERS SHALL REMOVE SUCH UTILITIES OR ENCROACHMENTS BY SUCH DATE; TO PROVIDE THAT THE CONTRACTOR SELECTED TO CONSTRUCT THE PROJECT SHALL HAVE A CAUSE OF ACTION AGAINST THE OWNER OF THE UTILITY OR ENCROACHMENT FOR DAMAGES DUE TO ANY DELAY CAUSED BY THE FAILURE TO REMOVE OR RELOCATE SUCH UTILITIES BY SUCH DATE; TO PROVIDE THAT THE MISSISSIPPI TRANSPORTATION COMMISSION SHALL NOT BE LIABLE TO THE CONTRACTOR OR OWNER FOR DAMAGES CAUSED BY SUCH DELAY; TO PROVIDE THAT THE MISSISSIPPI TRANSPORTATION COMMISSION SHALL NOT BE REQUIRED TO FURNISH ADDITIONAL RIGHT-OF-WAY NOR SHALL IT BE REQUIRED TO CLEAR NEWLY ACQUIRED RIGHT-OF-WAY BEFORE UTILITIES OR OTHER ENCROACHMENTS ARE MOVED; TO ESTABLISH A UTILITY REMOVAL FROM HIGHWAY RIGHT-OF-WAY REVOLVING LOAN PROGRAM TO BE ADMINISTERED BY THE PUBLIC SERVICE COMMISSION FOR THE PURPOSE OF PROVIDING LOANS TO ASSIST OWNERS OF UTILITIES IN REMOVING UTILITIES LOCATED IN THE RIGHT-OF-WAYS OF HIGHWAY PROJECTS BEING CONSTRUCTED BY THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION; TO CREATE THE UTILITIES REMOVAL FROM HIGHWAY RIGHT-OF-WAYS REVOLVING LOAN FUND TO BE USED TO PROVIDE LOANS TO OWNERS OF PUBLIC UTILITIES TO ASSIST IN THE REMOVAL OF UTILITIES FOR THE RIGHT-OF-WAYS OF HIGHWAY PROJECTS ADMINISTERED BY THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION; TO ESTABLISH THE INTEREST RATE ON SUCH LOANS; TO GRANT THE PUBLIC SERVICE COMMISSION CERTAIN ADDITIONAL POWERS TO BE UTILIZED IN ADMINISTERING THE PROGRAM; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) At the time of advertising for bids for a project, the Mississippi Transportation Commission shall determine a specific date by which utilities or other encroachments shall be removed or relocated from the right-of-way of highway projects for which the commission has acquired the right of immediate title and possession of the right-of-way. The commission shall notify the owner not less than sixty (60) days prior to such date and the owners of the utilities or other encroachments shall remove such utilities or other encroachments by such date.

(2) If the utilities or the encroachments have not been removed or relocated by the specific date determined by the Mississippi Transportation Commission, the contractor selected to construct the project shall have a cause of action against the owner of the utility or the encroachment for damages due to any delay caused by the failure to remove or relocate the utilities or other encroachment by the date specified by the commission.

(3) The Mississippi Transportation Commission shall not be liable to the contractor or owners of the utilities or other encroachments for any damages due to any delay caused by the failure to remove or relocate the utilities or other encroachment by the date specified by the commission nor shall the commission be made a party to any action brought as a result of the failure to remove or relocate the utilities or other encroachment by such date.

(4) The Mississippi Department of Transportation shall not be required to furnish or have in its possession additional right-of-way nor shall it be required to clear newly acquired right-of-way before utilities or other encroachments shall be moved as required by this section.

SECTION 2. (1) There is established a utility removal from highway right-of-way revolving loan program to be administered by the Public Service Commission for the purpose of providing loans to assist owners of utilities in removing utilities located in the right-of-ways of highway projects being constructed by the Mississippi Department of Transportation.

(2) There is created in the State Treasury a revolving fund to be designated as the "Utilities Removal From Highway Right-Of-Ways Revolving Loan Fund" into which shall be deposited such money as the Legislature shall provide by appropriation. Money in the fund shall be used for the purpose of providing loans to the owners of public utilities to assist in the removal of utilities from the right-of-ways of highway projects being constructed by the Mississippi Department of Transportation. The fund shall be administered by the Public Service Commission. Unexpended amounts remaining in the fund at the end of the state fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

(3) The owner of a utility located in the right-of-way of a highway project being constructed by the Mississippi Department of Transportation may apply for a loan under the program established in this section to assist in the removal of utilities from the right-of-ways of highway projects being constructed by the Mississippi Department of Transportation.

(4) Loans under this section shall bear an interest rate in an amount set by the Public Service Commission and shall be made available to assist the owners of utilities located in the right-of-ways of highway projects being constructed by the Mississippi Department of Transportation in moving such utilities. Loans from the revolving fund may be made to the owner of utilities in amounts not to exceed one hundred percent (100%) of the cost of moving utilities from the right-of-way of highway projects constructed by the Mississippi Department of Transportation. The cost of moving the utilities shall be established by the Mississippi Department of Transportation.

SECTION 3. In administering the provisions of Section 2 of this act, the Public Service Commission shall have the power to adopt all reasonable rules and regulations that it may consider necessary including, but not limited to:

(a) Procedures for applying for loans;

(b) Selection criteria for evaluating the need for a loan;

(c) Procedures for funding and retiring loans; and

(d) Procedures to be followed if default occurs in the repayment of loans.

 

SECTION 4. This act shall take effect and be in force from and after passage.