Minnesota Legislature
SF 1557
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:22am
Current Version - as introduced
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A bill for an act
relating to energy; appropriating money to Department of Commerce and Public
Utilities Commission to finance activities and projects related to energy or
commerce; modifying provisions relating to assessments, audits, insurance and
insurers, public utilities, cooperative electric associations, and municipal power
agencies; amending Minnesota Statutes 2008, sections 45.027, subdivision 1;
60A.315, subdivision 6; 61A.02, subdivisions 2, 2a; 61A.072, subdivision 11;
70A.06, subdivision 2; 216B.62, subdivisions 3, 4, 5, by adding subdivisions;
237.295, subdivisions 2, 3, by adding a subdivision; repealing Minnesota Statutes
2008, section 60A.315, subdivisions 1, 2, 3, 4, 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. new text begin SUMMARY OF APPROPRIATIONS.
|
new text begin
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end
|
new text begin
2010 new text end |
new text begin
2011 new text end |
new text begin
Total new text end |
||||
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new text begin
General new text end |
new text begin
$ new text end |
new text begin
27,740,000 new text end |
new text begin
$ new text end |
new text begin
26,740,000 new text end |
new text begin
$ new text end |
new text begin
54,480,000 new text end |
|
new text begin
Petroleum Tank Cleanup new text end |
new text begin
1,084,000 new text end |
new text begin
1,084,000 new text end |
new text begin
2,168,000 new text end |
|||
|
new text begin
Workers' Compensation new text end |
new text begin
751,000 new text end |
new text begin
751,000 new text end |
new text begin
1,502,000 new text end |
|||
|
new text begin
Special Revenue new text end |
new text begin
300,000 new text end |
new text begin
300,000 new text end |
new text begin
600,000 new text end |
|||
|
new text begin
Total new text end |
new text begin
$ new text end |
new text begin
29,875,000 new text end |
new text begin
$ new text end |
new text begin
28,875,000 new text end |
new text begin
$ new text end |
new text begin
58,750,000 new text end |
Sec. 2. new text begin ENERGY FINANCE APPROPRIATIONS.
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new text begin
The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2010" and "2011" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2010, or
June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
year ending June 30, 2009, are effective the day following final enactment.
new text end
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new text begin
APPROPRIATIONS new text end |
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new text begin
Available for the Year new text end |
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new text begin
Ending June 30 new text end |
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new text begin
2010 new text end |
new text begin
2011 new text end |
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Sec. 3. new text begin DEPARTMENT OF COMMERCE
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||||||
new text begin Subdivision 1. new text end
new text begin
Total Appropriation
|
new text begin
$ new text end |
new text begin
24,442,000 new text end |
new text begin
$ new text end |
new text begin
23,442,000 new text end |
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new text begin
Appropriations by Fund new text end |
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|
new text begin
2010 new text end |
new text begin
2011 new text end |
|
|
new text begin
General new text end |
new text begin
22,307,000 new text end |
new text begin
21,307,000 new text end |
|
new text begin
Petroleum Cleanup new text end |
new text begin
1,084,000 new text end |
new text begin
1,084,000 new text end |
|
new text begin
Workers' Compensation new text end |
new text begin
751,000 new text end |
new text begin
751,000 new text end |
|
new text begin
Special Revenue new text end |
new text begin
300,000 new text end |
new text begin
300,000 new text end |
new text begin
The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end
new text begin Subd. 2. new text end
new text begin
Financial Examinations
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new text begin
6,637,000 new text end |
new text begin
6,637,000 new text end |
||||
new text begin Subd. 3. new text end
new text begin
Petroleum Tank Release Cleanup
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new text begin
1,084,000 new text end |
new text begin
1,084,000 new text end |
||||
new text begin
This appropriation is from the petroleum
tank release cleanup fund.
new text end
new text begin Subd. 4. new text end
new text begin
Administrative Services
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new text begin
4,300,000 new text end |
new text begin
4,300,000 new text end |
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new text begin Subd. 5. new text end
new text begin
Telecommunication
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new text begin
1,010,000 new text end |
new text begin
1,010,000 new text end |
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new text begin Subd. 6. new text end
new text begin
Market Assurance
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new text begin
7,121,000 new text end |
new text begin
7,121,000 new text end |
||||
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new text begin
Appropriations by Fund new text end |
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|
new text begin
General new text end |
new text begin
6,370,000 new text end |
new text begin
6,370,000 new text end |
|
new text begin
Workers' Compensation new text end |
new text begin
751,000 new text end |
new text begin
751,000 new text end |
new text begin Subd. 7. new text end
new text begin
Office of Energy Security
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new text begin
3,990,000 new text end |
new text begin
2,990,000 new text end |
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new text begin Subd. 8. new text end
new text begin
Telecommunications Access
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new text begin
300,000 new text end |
new text begin
300,000 new text end |
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new text begin
$300,000 the first year and $300,000
the second year are for transfer to the
commissioner of human services to
supplement the ongoing operational expenses
of the Minnesota Commission Serving
Deaf and Hard-of-Hearing People. This
appropriation is from the telecommunication
access Minnesota fund, and is added to
the commission's base. This appropriation
consolidates, and is not in addition to,
appropriation language from Laws 2006,
chapter 282, article 11, section 4, and
Laws 2007, chapter 57, article 2, section 3,
subdivision 7.
new text end
Sec. 4. new text begin PUBLIC UTILITIES COMMISSION
|
new text begin
$ new text end |
new text begin
5,433,000 new text end |
new text begin
$ new text end |
new text begin
5,433,000 new text end |
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Sec. 5.
Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read:
Subdivision 1.
General powers.
In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:
(1) make public or private investigations within or without this state as the
commissioner considers necessary to determine whether any person has violated or is
about to violate any law, rule, or order related to the duties and responsibilities entrusted
to the commissioner;
(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the
matter being investigated;
(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;
(4) conduct investigations and hold hearings for the purpose of compiling
information related to the duties and responsibilities entrusted to the commissioner;
(5) examine the books, accounts, records, and files of every licensee, and of every
person who is engaged in any activity regulated; the commissioner or a designated
representative shall have free access during normal business hours to the offices and
places of business of the person, and to all books, accounts, papers, records, files, safes,
and vaults maintained in the place of business;
(6) publish information which is contained in any order issued by the commissioner;
deleted text begin and
deleted text end
(7) require any person subject to duties and responsibilities entrusted to the
commissioner, to report all sales or transactions that are regulated. The reports must
be made within ten days after the commissioner has ordered the report. The report is
accessible only to the respondent and other governmental agencies unless otherwise
ordered by a court of competent jurisdictiondeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(8) assess a licensee the necessary expenses of the investigation performed by the
department when an investigation is made by order of the commissioner. The cost of the
investigation shall be determined by the commissioner and is based on the salary cost
of investigators or assistants and at an average rate per day or fraction thereof so as to
provide for the total cost of the investigations. All money collected must be deposited
into the general fund.
new text end
Sec. 6.
Minnesota Statutes 2008, section 60A.315, subdivision 6, is amended to read:
Subd. 6.
Audits; penalties.
The commissioner is authorized to conduct audits
and investigations under section 45.027 deleted text begin and this chapterdeleted text end to determine if the insurers are
complying with Minnesota law in the issuance of policies described under deleted text begin this sectiondeleted text end new text begin
sections 61A.02, 61A.72, and 70A.06new text end . If the policy filings contain provisions that are
inconsistent with or violate Minnesota law, the commissioner may take action against the
insurer under section 45.027. The commissioner shall assess the insurer for the costs of
the investigation performed by the department and shall deposit all such assessments into
the revolving fund established under section 60A.03.
Sec. 7.
Minnesota Statutes 2008, section 61A.02, subdivision 2, is amended to read:
Subd. 2.
Approval required.
new text begin (a) new text end Except as otherwise authorized pursuant to
subdivision 2a, no deleted text begin policy or certificate of life insurance ordeleted text end annuity contract, issued to an
individual, group, or multiple employer trust, nor any rider of any kind or description
which is made a part thereof shall be issued or delivered in this state, or be issued by a life
insurance company organized under the laws of this state, until the form of the same has
been approved by the commissioner. In making a determination under this section, the
commissioner may require the insurer to provide rates and advertising materials related to
policies or contracts, certificates, or similar evidence of coverage issued or delivered in
this state.
new text begin (b) new text end Subdivisions 1 to 5 apply to a policy, certificate of insurance, or similar evidence
of coverage issued to a Minnesota resident or issued to provide coverage to a Minnesota
resident. Subdivisions 1 to 5 do not apply to a certificate of insurance or similar evidence
of coverage that meets the conditions of section 61A.093, subdivision 2.
new text begin
(c) No policy or certificate of life insurance issued to an individual, group, or
multiple employer trust, nor any rider of any kind or description that is made a part
thereof shall be issued or delivered in this state, or be issued by a life insurance company
organized under the laws of this state, until the form of the same has been filed with the
commissioner. Subdivisions 2a to 5 do not apply to these policies, certificates, and riders.
new text end
Sec. 8.
Minnesota Statutes 2008, section 61A.02, subdivision 2a, is amended to read:
Subd. 2a.
Expedited procedure for deleted text begin life ordeleted text end annuity contracts; form and rate
filing reviews.
(a) An insurer may file deleted text begin a life ordeleted text end new text begin an new text end annuity contract, rates, or forms and all
related riders of any kind or description with the commissioner for a review under this
subdivision. Any review must be completed within 60 days of receipt of a completed
filing. The cost of any actuarial review must be paid by the insurer submitting the filing
under this subdivision.
(b) If a filing has been disapproved and is resubmitted, the cover letter must note the
disapproval and any changes made since the earlier filing, with an explanation of why
the new filing should be approved. Resubmission of disapproved forms should, where
possible, be made within 90 days of disapproval.
(c) The filer may request a hearing within ten days of receiving a final disapproval.
Within 20 days of the receipt of the request, the commissioner shall schedule a date
for the hearing, which must occur within 30 days of the scheduling. At least ten days'
written notice of the hearing must be given to all interested parties. All hearings must be
conducted in accordance with chapter 14.
(d) The hearing officer may order a prehearing conference for the resolution or
simplification of issues, to be held no less than three days before the scheduled date of
a hearing.
(e) All actuaries used by the commissioner to review filings submitted by insurers
pursuant to this subdivision, whether employed by the department or secured by contract,
must be members of the American Academy of Actuaries. The commissioner may
contract with actuaries to review filings submitted by insurers under this subdivision,
and shall assess the applicant for the costs of this review. Payments received by the
commissioner under this subdivision shall be deposited in the revolving fund established
under section 60A.03.
(f) Except for the change in timing for the review of completed filings found in
paragraph (a) and the expedited hearing procedures found in paragraph (c), nothing in
this subdivision shall be construed as changing the statutory and regulatory standards for
approval or disapproval of filings.
Sec. 9.
Minnesota Statutes 2008, section 61A.072, subdivision 11, is amended to read:
Subd. 11.
Filing requirement.
The filing deleted text begin and prior approvaldeleted text end of forms containing an
accelerated benefit is requirednew text begin prior to issuance or delivery in this statenew text end .
Sec. 10.
Minnesota Statutes 2008, section 70A.06, subdivision 2, is amended to read:
Subd. 2.
Policy form filings.
deleted text begin
No policy form shall be delivered or issued for
delivery unless it has been filed with the commissioner and either (i) the commissioner
has approved it or (ii) 60 days have elapsed and the commissioner has not disapproved
it as misleading or violative of public policy, which period may be extended by the
commissioner for an additional period not to exceed 60 days.
deleted text end
new text begin
Every licensed insurer
and every rate service organization licensed under section 70A.14 shall file with the
commissioner all forms and all changes and amendments of forms made by it for use in
this state not later than their effective date. No forms contained in a filing shall become
effective unless they have been filed with the commissioner.
new text end
Sec. 11.
Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read:
Subd. 3.
Assessing all public utilities.
The department and commission shall
quarterly, at least 30 days before the start of each quarter, estimate the total of their
expenditures in the performance of their duties relating to deleted text begin (1)deleted text end public utilities under deleted text begin section
216A.085,deleted text end sections new text begin 216A.085 and new text end 216B.01 to 216B.67, other than amounts chargeable
to public utilities under subdivision 2 deleted text begin ordeleted text end new text begin ,new text end 6, deleted text begin and (2) alternative energy engineering
activity under section 216C.261deleted text end new text begin 7, or 8new text end . The remainderdeleted text begin , except the amount assessed
against cooperatives and municipalities for alternative energy engineering activity under
subdivision 5,deleted text end shall be assessed by the commission and department to the several public
utilities in proportion to their respective gross operating revenues from retail sales of gas
or electric service within the state during the last calendar year. The assessment shall be
paid into the state treasury within 30 days after the bill has been transmitted via mail,
personal delivery, or electronic service to the several public utilities, which shall constitute
notice of the assessment and demand of payment thereof. The total amount which may
be assessed to the public utilities, under authority of this subdivision, shall not exceed
one-sixth of one percent of the total gross operating revenues of the public utilities
during the calendar year from retail sales of gas or electric service within the state. The
assessment for the third quarter of each fiscal year shall be adjusted to compensate for the
amount by which actual expenditures by the commission and department for the preceding
fiscal year were more or less than the estimated expenditures previously assessed.
Sec. 12.
Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read:
Subd. 4.
Objections.
Within 30 days after the date of the transmittal of any bill as
provided by deleted text begin subdivisionsdeleted text end new text begin subdivision new text end 2 deleted text begin anddeleted text end new text begin ,new text end 3, new text begin 7, or 8, new text end the public utility against which
the bill has been rendered may file with the commission objections setting out the
grounds upon which it is claimed the bill is excessive, erroneous, unlawful or invalid.
The commission shall within 60 days hold a hearing and issue an order in accordance
with its findings. The order shall be appealable in the same manner as other final orders
of the commission.
Sec. 13.
Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read:
Subd. 5.
Assessing cooperatives and municipals.
The commission and department
may charge cooperative electric associations, generation and transmission cooperative
electric associations, municipal power agencies, and municipal electric utilities their
proportionate share of the expenses incurred in the review and disposition of resource
plans, adjudication of service area disputes, proceedings under section 216B.1691,
216B.2425, or 216B.243, and the costs incurred in the adjudication of complaints over
service standards, practices, and rates. Cooperative electric associations electing to
become subject to rate regulation by the commission pursuant to section 216B.026,
subdivision 4, are also subject to this section. Neither a cooperative electric association
nor a municipal electric utility is liable for costs and expenses in a calendar year in excess
of the limitation on costs that may be assessed against public utilities under subdivision
2. A cooperative electric association, generation and transmission cooperative electric
association, municipal power agency, or municipal electric utility may object to and appeal
bills of the commission and department as provided in subdivision 4.
deleted text begin
The department shall assess cooperatives and municipalities for the costs of
alternative energy engineering activities under section 216C.261. Each cooperative and
municipality shall be assessed in proportion that its gross operating revenues for the sale
of gas and electric service within the state for the last calendar year bears to the total of
those revenues for all public utilities, cooperatives, and municipalities.
deleted text end
Sec. 14.
Minnesota Statutes 2008, section 216B.62, is amended by adding a
subdivision to read:
new text begin Subd. 7. new text end
new text begin Assessing all utilities. new text end
new text begin
The department shall assess public utilities,
cooperative electric associations, and municipal utilities for the costs of activities under
chapter 216C. The department shall not assess for costs of grants, loans, or other aids or
for costs that can be recovered through other assessment authority. Each public utility,
cooperative, and municipal utility shall be assessed in the proportion that its gross
operating revenue for the sale of gas and electric service within the state for the last
calendar year bears to the total of those revenues for all public utilities, cooperatives,
and municipalities.
new text end
Sec. 15.
Minnesota Statutes 2008, section 216B.62, is amended by adding a
subdivision to read:
new text begin Subd. 8. new text end
new text begin Audit investigation costs. new text end
new text begin
The audit investigation account is created as a
separate account in the special revenue fund in the state treasury. If the commission, in a
proceeding upon its own motion, on complaint, or upon an application to it, determines
that it is necessary, in order to carry out its duties imposed under this chapter or chapter
216, 216A, 216E, 216F, or 216G, to conduct an investigation or audit of any public utility
operations, practices, or policies requiring specialized technical professional investigative
services for the inquiry, the commission may seek authority from the Department of
Management and Budget to incur costs reasonably attributable to the specialized services.
If approved by the department, the commission shall render separate bills to the public
utility for the costs incurred for the technical professional investigative services. The
bill constitutes notice of the assessment and demand of payment. The amount of a bill
assessed by the commission under this subdivision must be paid by the public utility into
the state treasury within 30 days from the date of assessment. Money received under this
subdivision shall be credited to the audit investigation account.
new text end
Sec. 16.
Minnesota Statutes 2008, section 237.295, subdivision 2, is amended to read:
Subd. 2.
Assessment of costs.
The department and commission shall quarterly, at
least 30 days before the start of each quarter, estimate the total of their expenditures
in the performance of their duties relating to telephone companies, other than amounts
chargeable to telephone companies under subdivision 1, 5, deleted text begin ordeleted text end 6new text begin , or 7new text end . The remainder
must be assessed by the department to the telephone companies operating in this state
in proportion to their respective gross jurisdictional operating revenues during the last
calendar year. The assessment must be paid into the state treasury within 30 days after the
bill has been transmitted via mail, personal delivery, or electronic service to the telephone
companies. The bill constitutes notice of the assessment and demand of payment. The
total amount that may be assessed to the telephone companies under this subdivision may
not exceed three-eighths of one percent of the total gross jurisdictional operating revenues
during the calendar year. The assessment for the third quarter of each fiscal year must be
adjusted to compensate for the amount by which actual expenditures by the commission
and department for the preceding fiscal year were more or less than the estimated
expenditures previously assessed. A telephone company with gross jurisdictional
operating revenues of less than $5,000 is exempt from assessments under this subdivision.
Sec. 17.
Minnesota Statutes 2008, section 237.295, subdivision 3, is amended to read:
Subd. 3.
Objection.
Within 30 days after the date of the transmittal of any bill
as provided by subdivisions 1, 2, 5, deleted text begin anddeleted text end 6, new text begin or 7, new text end the parties to the proceeding, against
which the bill has been assessed, may file with the commission objections setting out the
grounds upon which it is claimed the bill is excessive, erroneous, unlawful, or invalid.
The commission shall within 60 days issue an order in accordance with its findings. The
order is appealable in the same manner as other final orders of the commission.
Sec. 18.
Minnesota Statutes 2008, section 237.295, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Audit investigation costs. new text end
new text begin
The audit investigation account is created as
a separate account in the special revenue fund in the state treasury. If the commission,
in a proceeding upon its own motion, on complaint, or upon an application to it,
determines it is necessary, in order to carry out its duties imposed under this chapter or
chapter 216 or 216A, to conduct an investigation or audit of any telephone company
or telecommunications carrier's operations, practices, or policies requiring specialized
technical professional investigative services for the inquiry, the commission may seek
authority from the Department of Management and Budget to incur costs reasonably
attributable to the specialized services. The commission shall render separate bills to
telephone companies and telecommunications carriers for the costs of the technical
professional investigative services. The bill constitutes notice of the assessment and
demand of payment. The amount of a bill assessed by the commission under this
subdivision must be paid by the telephone company or telecommunications carrier into
the state treasury within 30 days from the date of assessment. Money received under this
subdivision shall be credited to the audit investigation account.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2008, section 60A.315, subdivisions 1, 2, 3, 4, and 5,
new text end
new text begin
are
repealed.
new text end