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HB 7244

AN ACT RELATING TO HIGHWAYS -- RELOCATION OF UTILITY SERVICES

2026 Regular Session Introduced by Jennifer Boylan and 9 co-sponsors

Republican: The bill standardizes a 50% reimbursement to private utilities for relocation costs tied to federally funded highway projects, while full cost reimbursement to municipa

04/29/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7244

Summary of Bill HB 7244 (Rhode Island, 2026)

Purpose and Intent

  • HB 7244 seeks to clarify and expand state reimbursement for the relocation of utility facilities necessitated by highway construction.
  • The bill codifies that when the state initiates the relocation of utility facilities (owned by private entities or by state or local government entities) in connection with federally funded highway projects, the state will reimburse a portion of relocation costs.

Key Provisions

Section 1: Relocation of Utility Facilities – Reimbursement for private utilities

  • Applies to state-initiated relocations tied to highway projects on:
    • Federal aid primary or secondary systems, or
    • National system of interstate and defense highways (including extensions), for which federal funds reimburses part of project costs.
  • If relocation is required, the state may order the relocation.
  • Reimbursement rules for private entities (utilities owned by private corporations or private companies):
    • The state reimburses 50% of relocation costs.
    • Reimbursement applies to both federally reimbursable and non-reimbursable (i.e., non-federal) portions, but excludes “betterment” costs (i.e., improvements beyond the required relocation scope).
    • Reimbursement is specifically for relocation costs, not for betterment.
    • The relocation must be completed to the satisfaction of the state, within target dates and design criteria set by the state to facilitate timely project completion.
    • Reimbursement to private entities begins with highway projects authorized for construction after March 1, 1976.
    • The state pays 50% of the reasonable relocation amount to private corporations/companies as part of the federally aided project costs if conditions are met.

Section 1: Reimbursement for Private Entities – Summary

  • Emphasizes 50% cost reimbursement to private utilities for relocation costs, subject to:
    • Federal reimbursement eligibility,
    • Meeting state-imposed schedules and design criteria,
    • No reimbursement for betterment.

Section 1: Reimbursement Thresholds and Conditions

  • The act sets a framework whereby the state bears a portion of relocation costs, enabling smoother coordination of utility work with highway construction.
  • The private utility must complete relocation to the state’s satisfaction and within specified dates to receive reimbursement.

Section 2: Reimbursement for Municipal/Subdivisional Utilities

  • For state-initiated relocations of facilities owned by municipalities, political subdivisions, authorities, or state agencies:
    • The state shall pay the full cost of relocation as part of the federally funded highway project.

Section 3: Effective Date

  • The act takes effect upon passage.

Who/What Is Affected

  • Affected Parties:
    • Private utilities and private corporations/companies owning/operating utility facilities that must be relocated due to highway projects with federal funding.
    • Municipalities, political subdivisions, authorities, and state agencies owning or operating affected utilities.
  • Affected Projects:
    • Highway projects on federal aid primary/secondary systems or the national interstate/defense system (including extensions) with federal reimbursement.

Procedural and Timeline Aspects

  • Reimbursement eligibility requires:
    • Federal reimbursement applicability,
    • Completion of relocation to the state’s satisfaction within target dates,
    • Adherence to state-established design criteria.
  • Effective date: upon passage.
  • Legislative action history shows the bill was referred to House Finance and later recommended for study.

Overall Impact

  • The bill codifies a 50% reimbursement rate for relocation costs incurred by private utilities, reducing financial risk for private companies and accelerating coordination with highway construction.
  • It ensures municipalities and other government entities receive full cost reimbursement for relocations, potentially reducing local budgetary burdens.
  • By tying reimbursement to compliance with state timelines and design criteria, the bill aims to facilitate timely project delivery and minimize delays caused by utility relocation.

Compiled from official sources — confirm details with the bill’s official record.

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