FISCAL NOTE
Date Requested: February 06, 2026
Time Requested: 09:18 AM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3307 |
Introduced |
SB691 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The Division of Highways has experienced significant delays on construction projects due to utility relocations not being completed in a reasonable time frame. These prolonged delays have resulted in substantial costs in the form of contractor delay claims (downtime charges). To help facilitate timely utility relocation and avoid costly construction delays, this bill will shift the financial responsibility related to utility relocation to the DOH, provided that relocations are completed by the start of the construction phase for the DOH project. Based on previous projects, this equates to overall cost savings for the state, but this number is unknown.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
To help facilitate timely utility relocation and avoid costly construction delays, this bill will shift the financial responsibility related to utility relocation to the DOH, provided that relocations are completed by the start of the construction phase for the DOH project. Based on previous projects, this equates to overall cost savings for the state, but this number is unknown.
Memorandum
The Division of Highways has experienced significant delays on construction projects due to utility relocations not being completed in a reasonable time frame. These prolonged delays have resulted in substantial costs in the form of contractor delay claims (downtime charges).
Currently, utility companies are reimbursed for their required relocations based on “prior rights.” If the utility is located on DOH/public right of way, the relocation is financially borne by the utility company. If the utility is located on a private right of way, the relocation is financially borne by the DOH’s project.
In the early 2000s, legislation was enacted that required the DOH to pay for utility relocations in full, regardless of prior rights, to alleviate the burden on the utility companies. DOH expenditures totaled millions during this period yet failed to produce the desired improvements in relocation timeliness, and utility relocation timelines increased during this time. This full-funding requirement was repealed in 2006, and reimbursement reverted to the current "prior rights" system.
To help facilitate timely utility relocation and avoid costly construction delays, this bill will shift the financial responsibility related to utility relocation to the DOH, provided that relocations are completed by the start of the construction phase for the DOH project. Based on previous projects, this equates to overall cost savings for the state, but this number is unknown.
Person submitting Fiscal Note: Jonathan Schaffer
Email Address: jonathan.w.schaffer@wv.gov