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B-149833-O.M. 1 (1962-11-09)

handle is hein.gao/gaobadair0001 and id is 1 raw text is: CILACCO~ AUIrnL::: AI rlFG0 F UNITED S CING Am~ VISION The Comptroller Genei Released TATES GENERAL ACCOUNTING OFFICE WASHINGTON 25, D.C. ~al In the course of our audit work at the Bureau of Public Roads a question has arisen as to whether Bureau policy governing partici- pation of Federal-aid hightay funds in the cost of utility relocations necessitated by- highway construction, gives- proper effect to the limi- tations on the extent of such participation contained in section 123 of title 23, United States Code. Section 123 of title 23, United States Code, which was derived from section 111 of the Federal-Aid Highway Act of 1956 (70 Stat. 383), as amended by section 11 of the Federal-Aid Bighway.Aet of 1058 (72 Stat. 94), provides: (a) When a State shall pay for the cost of relocation of utility facilities necessitated by the construction of a project on the Federal-aid primary or secondary systems or on the inter- state System, including extensions thereof within urban areas, Federal funds may be _sd to reimburmn the State for such cost in the soas Proportion as Federal funds are expended on the proj- ect. federal funds shall not be uged to reimburse the State under this section when the payment to the utility violates the law of the State or violates a legal contuact between the utility and the State. Such reimbursement shall be made only after evidence satisfactory to the Secretary [of Commerce1 shall have been presented to him substantiating the fact that the State has paid such cost from its own funds with respect to Federsl-aid highway projects for which Federal funds are obligated subsequent to April 16, 1958, for work, including relocation of utility facilities. (b) The term 'utility', for the purposes of this section, shall include publicly, privately, and cooperatively owned utilities. (c) The term 'cost of relocation', for the puroses of this section, shall include the entire amount paid by such utility properly attributable to such reloeption after deducting there- from any increase in the value of the new facility and any salvaae value derived from the old facility. (Underscoring supplied.) -The-Bureau' s-policy and-procedures implementing-section- 123-are conw- tained in Policy and Procedure Memorandum (PM) 30-4, dated Decewber 31, 1957, as amended and modified by subsequent issuances. (See attachment) 77,

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