The Overview

Arizona cities that use voter-approved bond money for road and building projects must now give phone and cable companies at least 30 days’ public notice before asking them to move their lines, and must set up a formal process for repaying them. The changes took effect Saturday, Sept. 12, and add to an existing state law that already requires cities to cover those relocation costs. ​

Gov. Katie Hobbs (D) signed Senate Bill 1620 on June 22. Sen. David Gowan (R) sponsored the bill, which began as a measure about the Arizona space commission before a House committee replaced its contents.

What The Law Does

Under the signed law, a city must notify the telecommunications utility of any voter-approved bond project at least 30 days before requesting a relocation, and must create a process for the utility to apply for reimbursement. Those duties are added to the rules cities already follow when a bond-funded project forces a utility to move equipment within city limits.

Under existing law, the city pays the utility’s relocation costs and provides equal land or permit rights at its own expense. Utilities file verified itemized claims within 180 days after each quarter, and cities pay within 90 days. For equipment without existing land rights, total repayment is capped at 2% of the project’s bond money. The rules do not apply to bond measures sent to voters before Jan. 1, 2017.

The Debate

The Senate passed the space commission version 24-3 in February. The House Government Committee then voted 7-0 to strike its contents and replace them with the utility relocation language, according to the House summary of the signed law. The full House passed the new version 48-7 on April 14, and the Senate approved the changes 27-2 on June 12.

What’s Next

The law does not change who pays when a bond project moves utility lines. Cities already carried that cost. What it changes is the order of steps: companies now get advance warning and a defined way to file claims, which could reduce disputes and delays on voter-approved projects.

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