HB2499 - 531R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 9, chapter 4, article 6, Arizona Revised Statutes, is amended by adding section 9-461.18, to read:

START_STATUTE9-461.18. Adjustment or relocation of utility facilities in public utility easements; land rights; cost reimbursement; definitions

A. If a municipality requires that a utility adjust or otherwise relocate any of the utility's facilities constructed or installed within a public utility easement, the municipality shall reimburse the utility, or cause the utility to be reimbursed, for the relocation costs incurred by the utility as a result of the adjustment or relocation, unless an existing license, franchise or agreement provides otherwise. If a municipality requires the relocation of the utility's facilities to a location outside of the public utility easement, the municipality shall provide, at the expense of the municipality, the utility with equal land rights in the new location of the relocated facilities. A municipality may not require the adjustment or relocation of the utility's facilities except in connection with a project where the municipality is the lead government agency.

B. If a facility is relocated into a right‑of‑way pursuant to subsection A of this section, the municipality shall provide the utility with a permanent land right within the right‑of‑way equal to a public utility easement. If a subsequent municipal project requires the adjustment or relocation of the utility's facilities, the municipality shall reimburse the utility for the utility's relocation costs and provide new land rights for the relocated facilities.

C. A utility shall submit a verified itemized claim to the municipality for reimbursement of relocation costs within one hundred eighty days after each calendar quarter in which a utility incurs relocation costs.

D. The municipality shall:

1. Review each verified itemized claim submitted pursuant to subsection C of this section. The review may include an audit conducted pursuant to standard industry accounting principles.

2. Reimburse the utility for the relocation costs within ninety days after receipt of the verified itemized claim. A municipality may not act arbitrarily with respect to requiring the relocation of a facility owned by a utility that has been installed in a public utility easement and may not unreasonably favor one utility over another when requiring relocations under this section.

E. A municipality may adopt reasonable regulations with respect to the construction and installation of facilities within a public utility easement subject to all of the following:

1. A municipality may not impose any fee, rent or charge on a utility for the use of a public utility easement, except that a municipality may charge reasonable permit fees that are consistent with the administrative costs incurred by the municipality in reviewing the utility's construction plans.

2. A municipality may charge an applicant requesting the abandonment of a public utility easement a reasonable fee to process the application for the abandonment.

3. A municipality shall treat all facilities located within a public utility easement on an equal basis, except that a municipality may adopt reasonable regulations to address the separation of additional facilities to prevent any damage to or interference with facilities then existing within the public utility easement.

4. A municipality may not favor the municipality's facilities over the facilities of other utilities.

F. For the purposes of this section:

1. "Municipality":

(a) Means any city or town, including a charter city.

(b) Includes any special district of a city or town, including a special district of a charter city.

2. "Right-of-way" means an easement or fee title dedicated or conveyed to a municipality for the purposes of a road right‑of‑way, regardless of the inclusion of other authorized uses.

3. "Utility":

(a) Has the same meaning prescribed in section 48‑5107.

(b) Includes any political subdivision of this state, including a municipality, that provides sewer or telecommunications service. END_STATUTE

Sec. 2. Title 11, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 11-810.01, to read:

START_STATUTE11-810.01. Adjustment or relocation of utility facilities in public utility easements; cost reimbursement; definitions

A. If a county requires that a utility adjust or otherwise relocate any of the utility's facilities constructed or installed within a public utility easement, the county shall reimburse the utility, or cause the utility to be reimbursed, for the relocation costs incurred by the utility as a result of the adjustment or relocation, unless an existing license, franchise or agreement provides otherwise. If a county requires the relocation of the utility's facilities to a location outside of the public utility easement, the county shall provide, at the expense of the county, the utility with equal land rights in the new location of the relocated facilities. A county may not require the adjustment or relocation of the utility's facilities except in connection with a project in which the county is the lead government agency.

B. A utility shall submit a verified itemized claim to the county for reimbursement of relocation costs within one hundred eighty days after each calendar quarter in which a utility incurs relocation costs.

C. The county shall:

1. Review each verified itemized claim submitted pursuant to subsection B of this section. The review may include an audit conducted pursuant to standard industry accounting principles.

2. Reimburse the utility for the relocation costs within ninety days after receipt of the verified itemized claim. A county may not act arbitrarily with respect to requiring the relocation of a facility owned by a utility that has been installed in a public utility easement and may not unreasonably favor one utility over another when requiring relocations under this section.

D. A county may adopt reasonable regulations with respect to the construction and installation of facilities within a public utility easement subject to all of the following:

1. A county may not impose any fee, rent or charge on a utility for the use of a public utility easement, except that a county may charge reasonable permit fees that are consistent with the administrative costs incurred by the county in reviewing the utility's construction plans.

2. A county may charge an applicant requesting the abandonment of a public utility easement a reasonable fee to process the application for the abandonment.

3. A county shall treat all facilities located within a public utility easement on an equal basis, except that a county may adopt reasonable regulations to address the separation of additional facilities to prevent any damage to or interference with facilities then existing within the public utility easement.

4. A county may not favor the county's facilities over the facilities of other utilities.

E. For the purposes of this section:

1. "County" means any county, including any special district of a county.

2. "Public Utility Easement":

(a) Means an easement or other real property right that is granted, dedicated, reserved or otherwise conveyed for the use of utility facilities, regardless of the language used in creating such right and regardless of the inclusion of other authorized uses.

(b) Does not include a right‑of‑way.

3. "Right-of-way" means an easement or fee title dedicated or conveyed to a county for the purposes of a road right‑of‑way, regardless of the inclusion of other authorized uses.

4. "Utility":

(a) Has the same meaning prescribed in section 48‑5107.

(b) Includes any political subdivision of this state that provides sewer or telecommunications service. END_STATUTE

Sec. 3. Findings

Public and private utility services bring important daily benefits to the residents of this state, including interjurisdictional distribution of natural gas and electricity and sending and receiving constitutionally protected speech and other communications. Differing access to and use of public easements and public utility easements across multiple subdivisions of this state can impede the use of these services by, and their delivery to, the residents of this state. Therefore, the legislature finds, determines and declares that this act is necessary as a matter of statewide concern to ensure that cities, towns and counties, including charter cities, and their special districts compatibly and effectively authorize, administer and manage the use of public easements and public utility easements.