House Bill 672, introduced in the Montana Legislature on February 22, 2025, aims to amend existing laws regarding the relocation costs of utility facilities affected by state highway construction projects. The bill seeks to clarify the financial responsibilities of the Montana Department of Transportation (MDT) when it comes to relocating publicly owned water and sewer facilities.

The key provisions of House Bill 672 include a structured cost-sharing framework for the relocation of utility facilities. Under the proposed amendments, the MDT would cover 75% of the costs for relocating, dismantling, and removing utility facilities, with specific provisions for facilities based on their size. For publicly owned water or sewer facilities with 500 or fewer service connectors, the MDT would bear the entire cost of relocation if the project is a result of state highway construction. For facilities with between 500 and 1,000 service connectors, the MDT would cover 85% of the costs under similar conditions.

A notable aspect of the bill is the introduction of a preliminary notice requirement for utilities, which mandates that the MDT inform utility providers when their facilities may need to be relocated due to planned highway projects. This provision aims to ensure that utilities have adequate time to prepare for relocations, although the MDT may reduce its financial participation if the utility does not act within a reasonable timeframe.

The bill has sparked discussions among lawmakers and stakeholders, particularly regarding the financial implications for local governments and utility providers. Supporters argue that the bill provides necessary clarity and support for smaller utilities, while opponents express concerns about the potential burden on state resources and the implications for larger utility companies.

The economic implications of House Bill 672 could be significant, as it may affect the budgeting and planning processes for both state highway projects and utility operations. By establishing clear guidelines for cost-sharing, the bill aims to streamline the relocation process, potentially reducing delays in highway construction and improving infrastructure development.

As the legislative session progresses, House Bill 672 will likely continue to be a focal point of debate, with its outcomes potentially influencing future utility management and state infrastructure projects in Montana.