Wisconsin Assembly Bill AB275

Wisconsin 2023-2024 Regular Session

• Introduced: 5/17/23
• Refer: 5/17/23
• Failed: 4/15/24

Caption

Damages claims relating to delayed relocation of utilities in a highway right-of-way and modifying administrative rules promulgated by the Department of Transportation. (FE)

Impact

The bill amends existing statutes related to utility facilities and outlines the responsibilities of utility facility owners and contractors. It mandates that the DOT notify utility owners when a damages claim is filed, allowing them to respond with additional information. If a utility relocation delay is confirmed by the DOT, contractors are to be compensated without the imposition of liquidated damages. Furthermore, if the delay is due to the owner's failure to complete the relocation according to an approved plan, the owner is liable to compensate the DOT for the contractor’s claims. This could significantly impact the financial and operational dynamics regarding utility management for contractors and utility owners alike.

Summary

Assembly Bill 275 establishes a framework for highway improvement contractors to claim damages due to delays caused by uncompleted relocation or adjustments of utility facilities in the right-of-way of highways. The bill defines 'utility facility' broadly, encompassing various structures used for the transmission and distribution of essential services, including electricity, water, and telecommunications. Under the new provisions, contractors affected by utility relocation delays can file claims with the Department of Transportation (DOT) for compensation for costs incurred during project delays.

Contention

While the bill's supporters highlight its potential to streamline project completion and provide fair compensation to contractors, concerns have been raised about the implications for utility owners who may experience financial burdens due to delays that are out of their control. There is a possibility that the connection between contractors and the utility facility owners may lead to disputes regarding the owner’s responsibilities in unforeseen circumstances, as the bill places considerable liability on utility owners for relocation delays. Additionally, the requirement for an appeals mechanism for owners when they contest a delay could introduce complexities into the process.