1.1                          A bill for an act 
  1.2             relating to utilities; modifying the role and 
  1.3             composition of the public utilities commission; making 
  1.4             technical changes; amending Minnesota Statutes 1994, 
  1.5             sections 216A.01; 216A.03, subdivisions 1, 3, and 3a; 
  1.6             216A.036; 216A.04, subdivisions 1a and 3; and 216A.05, 
  1.7             subdivisions 1, 2, and 5; proposing coding for new law 
  1.8             in Minnesota Statutes, chapter 216A; repealing 
  1.9             Minnesota Statutes 1994, section 216A.05, subdivision 
  1.10            4. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 216A.01, is 
  1.13  amended to read: 
  1.14     216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION.] 
  1.15     There are hereby created and established the department of 
  1.16  public service, and the public utilities commission.  The 
  1.17  department of public service shall have and possess all of the 
  1.18  rights and powers and perform all of the duties vested in it by 
  1.19  this chapter.  The public utilities commission shall have and 
  1.20  possess all of the rights and powers and perform all of the 
  1.21  duties vested in it by this chapter, and those formerly vested 
  1.22  by law in the railroad and warehouse commission. 
  1.23     Sec. 2.  Minnesota Statutes 1994, section 216A.03, 
  1.24  subdivision 1, is amended to read: 
  1.25     Subdivision 1.  [MEMBERS.] The public utilities commission 
  1.26  shall consist of five three members.  The terms of members shall 
  1.27  be six years and until their successors have been appointed and 
  1.28  qualified.  Each commissioner shall be appointed by the governor 
  2.1   by and with the advice and consent of the senate.  Not more than 
  2.2   three two commissioners shall belong to the same political 
  2.3   party.  At least one commissioner must have been domiciled at 
  2.4   the time of appointment outside the seven-county metropolitan 
  2.5   area.  If the membership of the commission after July 31, 1986 
  2.6   1995, does not consist of at least one member domiciled at the 
  2.7   time of appointment outside the seven-county metropolitan area, 
  2.8   the membership shall conform to this requirement following 
  2.9   normal attrition of the present commissioners.  The governor 
  2.10  when selecting commissioners shall give consideration to select 
  2.11  persons learned in the law or persons who have engaged in the 
  2.12  profession of engineering, public accounting, property and 
  2.13  utility valuation, finance, physical or natural sciences, 
  2.14  production agriculture, or natural resources as well as being 
  2.15  representative of the general public. 
  2.16     For purposes of this subdivision, "seven-county 
  2.17  metropolitan area" means Anoka, Carver, Dakota, Hennepin, 
  2.18  Ramsey, Scott, and Washington counties. 
  2.19     Sec. 3.  Minnesota Statutes 1994, section 216A.03, 
  2.20  subdivision 3, is amended to read: 
  2.21     Subd. 3.  [CHAIR.] The governor shall select one of the 
  2.22  commissioners to serve as the chair for a term concurrent with 
  2.23  that of the governor.  The chair shall serve at the pleasure of 
  2.24  the governor. 
  2.25     If a vacancy occurs in the position of chair, the governor 
  2.26  shall select a new chair to complete the unexpired term. 
  2.27     Sec. 4.  Minnesota Statutes 1994, section 216A.03, 
  2.28  subdivision 3a, is amended to read: 
  2.29     Subd. 3a.  [POWERS AND DUTIES OF CHAIR.] The chair shall be 
  2.30  the principal executive officer of the commission and shall 
  2.31  preside at meetings of the commission.  The chair shall organize 
  2.32  the work of the commission and may shall make assignments to 
  2.33  commission members, appoint committees; approve travel and other 
  2.34  expenses for commission members and employees; appoint, subject 
  2.35  to chapter 43A, all other classified employees of the 
  2.36  commission; and give direction to the commission staff through 
  3.1   the executive secretary subject to the approval of the 
  3.2   commission.  
  3.3      Sec. 5.  Minnesota Statutes 1994, section 216A.036, is 
  3.4   amended to read: 
  3.5      216A.036 [EMPLOYMENT RESTRICTIONS.] 
  3.6      (a) A person who serves as (1) a commissioner or executive 
  3.7   secretary of the public utilities commission, (2) commissioner 
  3.8   of the department of public service, or (3) deputy commissioner 
  3.9   of the department, shall not, while employed with or within one 
  3.10  year after leaving the commission, or department, accept 
  3.11  employment with, receive compensation directly or indirectly 
  3.12  from, or enter into a contractual relationship with an entity, 
  3.13  or an affiliated company of an entity, that is subject to rate 
  3.14  regulation by the commission. 
  3.15     (b) An entity or an affiliated company of an entity that is 
  3.16  subject to rate regulation by the commission, or a person acting 
  3.17  on behalf of the entity, shall not negotiate or offer to employ 
  3.18  or compensate a commissioner or executive secretary of the 
  3.19  public utilities commission, the commissioner of public service, 
  3.20  or the deputy commissioner, while the person is so employed or 
  3.21  within one year after the person leaves that employment. 
  3.22     (c) For the purposes of this section, "affiliated company" 
  3.23  means a company that controls, is controlled by, or is under 
  3.24  common control with an entity subject to rate regulation by the 
  3.25  commission. 
  3.26     (d) A person who violates this section is subject to a 
  3.27  civil penalty not to exceed $10,000 for each violation.  The 
  3.28  attorney general may bring an action in district court to 
  3.29  collect the penalties provided in this section.  
  3.30     Sec. 6.  Minnesota Statutes 1994, section 216A.04, 
  3.31  subdivision 1a, is amended to read: 
  3.32     Subd. 1a.  [POWERS AND DUTIES OF EXECUTIVE SECRETARY.] The 
  3.33  executive secretary shall:  
  3.34     (1) cause to be kept full and correct records of all 
  3.35  transactions and proceedings of the commission; 
  3.36     (2) appoint, subject to chapter 43A and the approval of the 
  4.1   commission, all other classified employees of the commission and 
  4.2   supervise and direct their activities; 
  4.3      (3) have custody of the seal of the commission; 
  4.4      (4) (3) serve as the administrative officer of the 
  4.5   commission with responsibility for personnel, budget and other 
  4.6   administrative details related to the work of the commission or 
  4.7   as required by state law; 
  4.8      (5) (4) prepare orders, reports, and other materials as 
  4.9   assigned by the commission and recommend to the commission such 
  4.10  measures as may be appropriate to achieve the objectives of the 
  4.11  commission; 
  4.12     (6) (5) advise the commission of its financial position and 
  4.13  recommend a budget for its approval; and 
  4.14     (7) (6) perform other duties as the commission directs.  
  4.15     Sec. 7.  Minnesota Statutes 1994, section 216A.04, 
  4.16  subdivision 3, is amended to read: 
  4.17     Subd. 3.  [OFFICERS AND EMPLOYEES.] The commission may 
  4.18  establish one other positions position in the unclassified 
  4.19  service if the positions meet position meets the criteria of 
  4.20  section 43A.08, subdivision 1a, clauses (a) (1) to (g) (7).  The 
  4.21  commission may employ as many as ten other persons as may be 
  4.22  necessary to carry out its functions. 
  4.23     Hearing reporters may provide transcripts of proceedings 
  4.24  before the commission to persons requesting transcripts who pay 
  4.25  a reasonable charge therefor to the reporter.  The amount of the 
  4.26  charge shall be fixed by the commission and retained by the 
  4.27  reporter, any other law to the contrary notwithstanding. 
  4.28     Sec. 8.  Minnesota Statutes 1994, section 216A.05, 
  4.29  subdivision 1, is amended to read: 
  4.30     Subdivision 1.  [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 
  4.31  The functions of the commission shall be legislative and 
  4.32  quasi-judicial in nature.  It may make such order investigations 
  4.33  and make determinations, hold such hearings, prescribe such 
  4.34  rules, and issue such orders with respect to the control and 
  4.35  conduct of the businesses coming within its jurisdiction as the 
  4.36  legislature itself might make but only as it shall from time to 
  5.1   time authorize.  It may adjudicate all proceedings brought 
  5.2   before it in which the violation of any law or rule administered 
  5.3   by the department is alleged. 
  5.4      Sec. 9.  Minnesota Statutes 1994, section 216A.05, 
  5.5   subdivision 2, is amended to read: 
  5.6      Subd. 2.  [POWERS GENERALLY.] The commission shall, to the 
  5.7   extent prescribed by law: 
  5.8      (1) Investigate the management of all warehouse operators 
  5.9   and telegraph companies, the manner in which their businesses 
  5.10  are conducted and the adequacies of the services which they are 
  5.11  affording to the public, and make all appropriate orders 
  5.12  relating to the continuation, termination or modification of all 
  5.13  services and facilities with a view to properly promoting the 
  5.14  security and convenience of the public. 
  5.15     (2) Review and ascertain the reasonableness of tariffs of 
  5.16  rates, fares and charges, or any part or classification thereof, 
  5.17  and prescribe the form and manner of filing, posting and 
  5.18  publication thereof. 
  5.19     (3) (2) Prescribe uniform systems of keeping and rendering 
  5.20  accounts and the time within which such systems shall be adopted.
  5.21     (4) (3) Order the issuance of franchises, permits or 
  5.22  certificates of convenience and necessity. 
  5.23     Sec. 10.  Minnesota Statutes 1994, section 216A.05, 
  5.24  subdivision 5, is amended to read: 
  5.25     Subd. 5.  [HEARINGS UPON PETITIONS.] With respect to those 
  5.26  matters within its jurisdiction the commission shall receive, 
  5.27  hear and determine all petitions filed with it in accordance 
  5.28  with the rules of practice and procedure promulgated by the 
  5.29  commission, and may investigate order investigations, hold 
  5.30  hearings and make determinations upon its own motion to the same 
  5.31  extent, and in every instance, in which it may do so upon 
  5.32  petition.  In every hearing, the role of the commissioner and 
  5.33  its staff is limited to determining facts and policy based upon 
  5.34  evidence and proposals introduced by parties in the hearing. 
  5.35     Sec. 11.  [216A.055] [CONTINUATION OF RULES OF PUBLIC 
  5.36  UTILITIES COMMISSION.] 
  6.1      All valid rules, orders, and directives adopted, enforced, 
  6.2   or issued before the effective date of this section by the 
  6.3   public utilities commission under authority of chapter 216, 
  6.4   216A, 216B, 216C, or 237 remain and continue in force and effect 
  6.5   until repealed, modified, or superseded by duly authorized 
  6.6   rules, orders, or directives of the public utilities commission. 
  6.7      Sec. 12.  [REPEALER.] 
  6.8      Minnesota Statutes 1994, section 216A.05, subdivision 4, is 
  6.9   repealed.