Bill
H 3768
Extends sunset to 2031 on cost-sharing for water/sewer relocations in transportation projects; keeps 4% cap for large utilities, pro rata if several; small utilities funded in full.
Status: Referred to Committee on Finance (hearing scheduled 11/04/2025). Introduced Jan 16 / Feb 27, 2025; committee report (Education & Public Works) favorable 04/02/2025. Passed House on roll call 04/08/2025 (Yeas 103 — Nays 0); read in Senate 04/09/2025. Bill takes effect upon gubernatorial approval.
Purpose
- Extend the temporary statutory provision (added by Act 36 of 2019) that requires the entity undertaking a transportation improvement project to pay certain water/sewer relocation costs. The bill moves the sunset date for that provision from July 1, 2026 to July 1, 2031.
Key provisions
- Amends Section 2 of Act 36 of 2019 to change the expiration of Section 57‑5‑880 from July 1, 2026 to July 1, 2031.
- Under Section 57‑5‑880 (the provision being extended):
- The entity undertaking a transportation improvement project must pay relocation costs for water and sewer lines that are caused by the project.
- For a large public water or sewer utility, the project entity’s obligation is capped at up to 4% of the original construction bid amount for the project.
- If more than one large utility must relocate lines for a single project, the total cap (up to 4%) is divided pro rata among those large utilities.
- If a project impacts both a large utility and a small utility, the project entity must pay all relocation costs of the small utility (no capped share for small utilities).
- Effective date: upon approval by the Governor.
Who is affected
- Entities undertaking transportation improvement projects (state DOT, counties, municipalities, other project sponsors) — they will continue to bear specified water/sewer relocation costs through 2031.
- Large public water and sewer utilities — continue to have relocation costs covered by project entities up to the 4% cap (shared pro rata if multiple large utilities affected).
- Small public water and sewer utilities — continue to have all relocation costs paid by the project entity (they would otherwise bear costs if the provision expired).
- Local governments: impact varies by jurisdiction depending on whether they sponsor projects or operate utilities.
Fiscal impact (as estimated by the state Revenue & Fiscal Affairs Office / DOT)
- State DOT estimates extending the sunset will cost approximately $34 million (based on historic data for ~280 relocations); DOT expects to absorb costs within existing appropriations.
- Local impacts vary widely:
- Example estimates: Charleston County could see up to ~$24.5 million (4% of projected project bids over five years); Horry County estimated up to ~$100 million; Florence County reported no impact (does not operate utilities).
- For many municipalities that operate small utilities, the extension may enable projects that otherwise would be delayed or shifted, because project entities (not small utilities) bear the relocation costs.
Notes / context
- The bill is narrowly targeted: it does not change the 4% cap, the pro rata division rule, or the rule requiring project entities to pay small utilities’ relocation costs — it only extends the sunset date for those rules to July 1, 2031.
- Related: This bill continues a temporary cost-allocation mechanism first enacted in Act 36 of 2019 to facilitate highway/transportation construction projects that require utility relocations.
Compiled from official sources — confirm details with the bill’s official record.
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