MontanaHB 67269th Legislature, Regular Session (2025)House

Generally revise Montana department of transportation’s utility relocation process

Sponsored By: Courtenay Sprunger (Republican)

Signed by Governor

TransportationUtilitiesRule Making

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

State pays most utility move costs

Beginning January 1, 2026, the state transportation department pays 75% of utility relocation, dismantling, and removal costs when they are part of highway construction. It pays 100% for publicly owned water or sewer systems with 500 or fewer service connections, if they had 500 or fewer subscribers during the entire year before the contract letting and the move is due to state or commission-designated highway construction. It pays 85% for systems with more than 500 but fewer than 1,000 connections under the same timing and project rules. The department must send a preliminary notice when a move is needed and can lower its share over time to 0% if work is not done, but not until at least 90 days after the notice. The first 90 days of that notice period cannot overlap with any other notice period. These notice and cost-reduction rules, and related removal and liability items, apply only to projects built using the design-bid-build method. The department will set detailed timelines and definitions after consulting utilities, broadband and cable companies, and highway contractors.

State can remove lines with limited liability

Beginning January 1, 2026, the transportation department may remove a facility after giving reasonable written notice if it is not moved for a planned project or was not installed or relocated under a required permit. Except for willful misconduct, gross negligence, or violations of 69-4-523, the department and its contractors are not liable for compliant removals, including loss of service claims.

New right-of-way and permit rules

Beginning January 1, 2026, the transportation department must set rules for utilities that use highway rights-of-way. The rules cover installation, maintenance, upgrades, cost reimbursement, and occupancy or encroachment permits, and must allow public water and sewer systems to occupy and relocate while keeping highways safe. Existing facilities that lawfully occupy the right-of-way do not need new permits.

Sponsors & Cosponsors

Sponsor

Courtenay Sprunger
Republican • House

Cosponsors

Gregg Hunter
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 297 • No: 0

Senate vote • 4/16/2025

Do Concur

Yes: 50 • No: 0

Senate vote • 4/15/2025

Do Concur

Yes: 49 • No: 0

House vote • 3/7/2025

Do Pass

Yes: 99 • No: 0

House vote • 3/6/2025