2nd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 01/30/1997 | |
1st Engrossment | Posted on 03/24/1997 | |
2nd Engrossment | Posted on 03/26/1997 |
1.1 A bill for an act 1.2 relating to utilities; modifying provisions relating 1.3 to municipal utilities, cooperative electric 1.4 cooperatives, and natural gas pipelines; regulating 1.5 use of public rights-of-way by telecommunications 1.6 carriers; creating task force; requiring rulemaking; 1.7 amending Minnesota Statutes 1996, sections 237.04; 1.8 237.16, subdivision 1; and 237.74, subdivision 5; 1.9 proposing coding for new law in Minnesota Statutes, 1.10 chapter 237; repealing Minnesota Statutes 1996, 1.11 section 237.163, subdivision 5. 1.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.13 Section 1. Minnesota Statutes 1996, section 237.04, is 1.14 amended to read: 1.15 237.04 [WIRES CROSSING OR PARALLELING UTILITY LINES; 1.16 RULES.] 1.17 (a) The department shall determine and promulgate 1.18 reasonable rules covering the maintenance and operation, also 1.19 the nature, location, and character of the construction to be 1.20 used, where telephone, telegraph, electric light, power, or 1.21 other electric wires of any kind, or any natural gas pipelines, 1.22 cross, or more or less parallel the lines of any railroad, 1.23 interurban railway, or any otherpublic utilitysimilar public 1.24 service corporation; and, to this end, shall formulate and from 1.25 time to time, issue general rules covering each class of 1.26 construction, maintenance, and operation of such electric wire 1.27 or natural gas pipeline crossing, or paralleling, under the 1.28 various conditions existing; and the department, upon the 2.1 complaint of any person, railroad, interurban railway, municipal 2.2 utility, cooperative electric association, or other public 2.3 utility claiming to be injuriously affected or subjected to 2.4 hazard by any such crossing or paralleling lines constructed or 2.5 about to be constructed, shall, after a hearing, make such order 2.6 and prescribe such terms and conditions for the construction, 2.7 maintenance, and operation of the lines in question as may be 2.8 just and reasonable. 2.9 (b) The department may, upon request of any municipal 2.10 utility, electric cooperative association, or public utility, 2.11 determine the just and reasonable charge which a railroad, or 2.12 owner of an abandoned railroad right-of-way, can prescribe for a 2.13 new or existing crossing of a railroad right-of-way by an 2.14 electric or gas line, based on the dimunition in value caused by 2.15 the crossing of the right-of-way by the electric or gas line. 2.16 This section shall not be construed to eliminate the right of a 2.17 public utility, municipal utility, or electric cooperative 2.18 association to have any of the foregoing issues determined 2.19 pursuant to an eminent domain proceeding commenced under chapter 2.20 117. Unless the railroad, or owner of an abandoned railroad 2.21 right-of-way, asserts in writing that the proposed crossing is a 2.22 serious threat to the safe operations of the railroad or to the 2.23 current use of the railroad right-of-way, a crossing can be 2.24 constructed following filing of the requested action with the 2.25 department, pending review of the requested action by the 2.26 department. 2.27 The department shall assess the cost of reviewing the 2.28 requested action, and of determining a just and reasonable 2.29 charge, equally among the parties. 2.30 Sec. 2. Minnesota Statutes 1996, section 237.16, 2.31 subdivision 1, is amended to read: 2.32 Subdivision 1. [NEW SERVICE, CERTIFICATE OF AUTHORITY.] 2.33 (a) For the purpose of bringing about fair and reasonable 2.34 competition for local exchange telephone services, the 2.35 commission has the exclusive authority, subject to the authority 2.36 of a local government unit under sections 237.162 and 237.163, 3.1 to: 3.2 (1) authorize any person to construct telephone lines or 3.3 exchanges or to otherwise furnish local service to subscribers 3.4 in any municipality of this state, and to prescribe the terms 3.5 and conditions upon which construction or service delivery may 3.6 be carried on; and 3.7 (2) establish terms and conditions for the entry of 3.8 telephone service providers so as to protect consumers from 3.9 monopolistic practices and preserve the state's commitment to 3.10 universal service. 3.11 (b) No person shall provide telephone service in Minnesota 3.12 without first obtaining a determination that the person 3.13 possesses the technical, managerial, and financial resources to 3.14 provide the proposed telephone services and a certificate of 3.15 authority from the commission under terms and conditions the 3.16 commission finds to be consistent with fair and reasonable 3.17 competition, universal service, the provision of affordable 3.18 telephone service at a quality consistent with commission rules, 3.19 and the commission's rules. 3.20 (c) The commission shall make a determination on an 3.21 application for a certificate within 120 days of the filing of 3.22 the application. 3.23(d) The governing body of any municipality or town shall3.24have the same powers of regulation which it now possesses with3.25reference to the location of poles, wires, and other equipment3.26or facilities on, below, or above the streets, alleys, or other3.27public grounds so as to prevent any interference with the safe3.28and convenient use of streets, alleys, and other public grounds3.29by the public.3.30(e) A telephone company or telecommunications carrier shall3.31provide for repair or restoration of streets, alleys, and other3.32public areas to their original condition if necessitated by the3.33installation or operation of telephone or telecommunications3.34carrier facilities.3.35 Sec. 3. [237.162] [PUBLIC RIGHTS-OF-WAY; DEFINITIONS.] 3.36 Subdivision 1. [GENERALLY.] The terms used in sections 4.1 237.162 and 237.163 have the meanings given to them in this 4.2 section. 4.3 Subd. 2. [LOCAL GOVERNMENT UNIT.] "Local government unit" 4.4 means any county, home rule charter or statutory city, or town. 4.5 Subd. 3. [PUBLIC RIGHT-OF-WAY.] "Public right-of-way" 4.6 means the area on, below, or above a public roadway, street, 4.7 cartway, bicycle lane, recreational trail, and public sidewalk 4.8 in which the local government unit has an interest in law or 4.9 equity, including: 4.10 (1) those defined and set forth in section 160.02; and 4.11 (2) other dedicated rights-of-way and utility easements of 4.12 local government units. 4.13 A public right-of-way does not include the airwaves above a 4.14 public right-of-way with regard to cellular or other nonwire 4.15 telecommunications or broadcast service. 4.16 Subd. 4. [TELECOMMUNICATIONS RIGHT-OF-WAY USER.] 4.17 "Telecommunications right-of-way user" means a person owning or 4.18 controlling a facility in the public right-of-way, or seeking to 4.19 own or control a facility in the public right-of-way, that is 4.20 used or is intended to be used for transporting 4.21 telecommunications or other voice or data information. A cable 4.22 communication system defined and regulated under chapter 238, 4.23 and telecommunications activities related to providing natural 4.24 gas or electric energy services whether provided by a public 4.25 utility or by a municipality or cooperative electric 4.26 association, as those terms are defined in chapter 216B, are not 4.27 telecommunications right-of-way users for the purposes of this 4.28 section and section 237.163. 4.29 Subd. 5. [EXCAVATE.] "Excavate" means to dig into or in 4.30 any way remove, physically disturb, or penetrate a part of a 4.31 public right-of-way. 4.32 Subd. 6. [OBSTRUCT.] "Obstruct" means to place a tangible 4.33 object in a public right-of-way so as to hinder free and open 4.34 passage over that or any part of the right-of-way. 4.35 Subd. 7. [RIGHT-OF-WAY PERMIT.] "Right-of-way permit" 4.36 means a permit to perform work in a public right-of-way, whether 5.1 to excavate or obstruct the right-of-way. 5.2 Subd. 8. [MANAGE THE PUBLIC RIGHT-OF-WAY.] "Manage the 5.3 public right-of-way" means the authority of a local government 5.4 unit to do any or all of the following: 5.5 (1) require registration; 5.6 (2) require construction performance bonds and insurance 5.7 coverage; 5.8 (3) establish installation and construction standards; 5.9 (4) establish and define location and relocation 5.10 requirements for equipment and facilities; 5.11 (5) establish coordination and timing requirements; 5.12 (6) require telecommunications right-of-way users to 5.13 submit, for right-of-way projects commenced after the effective 5.14 date of this section, whether initiated by a local government 5.15 unit or any telecommunications right-of-way user, all data 5.16 necessary to allow the local government unit, at its option, to 5.17 develop a right-of-way mapping system; 5.18 (7) establish right-of-way permitting requirements for 5.19 street excavation and obstruction; and 5.20 (8) establish removal requirements for abandoned equipment 5.21 or facilities, if required in conjunction with other 5.22 right-of-way repair, excavation, or construction. 5.23 Subd. 9. [MANAGEMENT COSTS OR RIGHTS-OF-WAY MANAGEMENT 5.24 COSTS.] "Management costs" or "rights-of-way management costs" 5.25 means the actual costs a local government unit incurs in 5.26 managing its public rights-of-way, and includes such costs, if 5.27 incurred, as those associated with registering applicants; 5.28 issuing, processing, and verifying right-of-way permit 5.29 applications; inspecting job sites and restoration projects; 5.30 maintaining, supporting, protecting, or moving user equipment 5.31 during public right-of-way work; performing surface restoration, 5.32 for those local government units that choose to perform their 5.33 own surface restoration; determining the adequacy of 5.34 right-of-way restoration and restoring work inadequately 5.35 performed; and revoking right-of-way permits. Management costs 5.36 do not include payment by a telecommunications right-of-way user 6.1 for the use of the public right-of-way. 6.2 Sec. 4. [237.163] [USE AND REGULATION OF PUBLIC 6.3 RIGHTS-OF-WAY.] 6.4 Subdivision 1. [LEGISLATIVE FINDING.] The legislature 6.5 finds, and establishes the principle that, it is in the state's 6.6 interest that the use and regulation of public rights-of-way be 6.7 carried on in a fair, efficient, competitively neutral, and 6.8 substantially uniform manner. 6.9 Subd. 2. [GENERALLY.] (a) Subject to this section, a 6.10 telecommunications right-of-way user authorized to do business 6.11 under the laws of this state or by license of the Federal 6.12 Communications Commission may construct, maintain, and operate 6.13 conduit, cable, switches, and related appurtenances and 6.14 facilities along, across, upon, above, and under any public 6.15 right-of-way. 6.16 (b) Subject to this section, a local government unit has 6.17 the authority to manage its public rights-of-way and to recover 6.18 its rights-of-way management costs. The authority defined in 6.19 this section may be exercised at the option of the local 6.20 government unit. The exercise of this authority is not mandated 6.21 under this section. A local government unit may, by ordinance: 6.22 (1) require a telecommunications right-of-way user seeking 6.23 to excavate or obstruct a public right-of-way for the purpose of 6.24 providing telecommunications services to obtain a right-of-way 6.25 permit to do so and to impose permit conditions consistent with 6.26 the local government unit's management of the right-of-way; 6.27 (2) require a telecommunications right-of-way user using, 6.28 occupying, or seeking to use or occupy a public right-of-way for 6.29 the purpose of providing telecommunications services to register 6.30 with the local government unit by providing the local government 6.31 unit with the following information: 6.32 (i) the applicant's name, gopher one-call registration 6.33 number, address, and telephone and facsimile numbers; 6.34 (ii) the name, address, and telephone and facsimile numbers 6.35 of the applicant's local representative; 6.36 (iii) proof of adequate insurance; and 7.1 (iv) other information deemed reasonably necessary by the 7.2 city for the efficient administration of the public 7.3 right-of-way; and 7.4 (3) require telecommunications right-of-way users to submit 7.5 to the local government unit plans for construction and major 7.6 maintenance that provide reasonable notice to the local 7.7 government unit of projects that the telecommunications 7.8 right-of-way user expects to undertake that may require 7.9 excavation and obstruction of public rights-of-way. 7.10 (c) A local government unit may also require a 7.11 telecommunications right-of-way user that is registered with the 7.12 local government unit pursuant to paragraph (b), clause (2), to 7.13 periodically update the information in its registration 7.14 application. 7.15 Subd. 3. [RESTORATION.] (a) A telecommunications 7.16 right-of-way user, after an excavation or obstruction of a 7.17 public right-of-way, shall provide for repair or restoration of 7.18 the right-of-way and surrounding areas, including the pavement 7.19 and its foundation, in the same condition that existed before 7.20 the excavation or obstruction. Restoration of the public 7.21 right-of-way must be completed within the dates specified in the 7.22 right-of-way permit, unless the permittee obtains a waiver or a 7.23 new or amended right-of-way permit. 7.24 (b) In lieu of requiring the telecommunications 7.25 right-of-way user to restore the public right-of-way, a local 7.26 government unit may impose a degradation fee to recover costs 7.27 associated with a decrease in the useful life of the public 7.28 right-of-way caused by an excavation or obstruction of the 7.29 right-of-way by a telecommunications right-of-way user. 7.30 (c) A telecommunications right-of-way user that disturbs 7.31 uncultivated sod in the excavation or obstruction of a public 7.32 right-of-way shall plant grasses that are native to Minnesota 7.33 and, wherever practicable, that are of the local eco-type, as 7.34 part of the restoration required under this subdivision, unless 7.35 the owner of the real property over which the public 7.36 right-of-way traverses objects. In restoring the right-of-way, 8.1 the telecommunications right-of-way user shall consult with the 8.2 department of natural resources regarding the species of native 8.3 grasses that conform to the requirements of this paragraph. 8.4 Subd. 4. [PERMIT DENIAL OR REVOCATION.] (a) A local 8.5 government unit may deny any application for a right-of-way 8.6 permit if the permittee does not comply with a specific 8.7 provision contained in this section. 8.8 (b) A local government unit may deny an application for a 8.9 right-of-way permit if the local government unit determines that 8.10 the denial is necessary to protect the health, safety, and 8.11 welfare or when necessary to protect the public right-of-way and 8.12 its current users. 8.13 (c) A local government unit may revoke a right-of-way 8.14 permit, with or without fee refund, in the event of a 8.15 substantial breach of the terms and conditions of statute, 8.16 ordinance, rule, or regulation or any condition of the permit. 8.17 A substantial breach by a permittee includes, but is not limited 8.18 to, the following: 8.19 (1) a violation of any material provision of the 8.20 right-of-way permit; 8.21 (2) an evasion or attempt to evade any material provision 8.22 of the right-of-way permit, or the perpetration or attempt to 8.23 perpetrate any fraud or deceit upon the local government unit or 8.24 its citizens; 8.25 (3) a material misrepresentation of fact in the 8.26 right-of-way permit application; 8.27 (4) a failure to complete work in a timely manner, unless a 8.28 permit extension is obtained or unless the failure to complete 8.29 work is due to reasons beyond the permittee's control; and 8.30 (5) a failure to correct, in a timely manner, work that 8.31 does not conform to applicable standards, conditions, or codes, 8.32 upon inspection and notification by the local government unit of 8.33 the faulty condition. 8.34 (d) Subject to this subdivision, a local government unit 8.35 may not deny an application for a right-of-way permit for 8.36 failure to include a project in a plan submitted to the local 9.1 government unit under subdivision 2, paragraph (b), clause (3), 9.2 when the telecommunications right-of-way user can show that it 9.3 used commercially reasonable efforts to anticipate and plan for 9.4 the project. 9.5 (e) In no event may a local government unit unreasonably 9.6 withhold approval of an application for a right-of-way permit, 9.7 or to unreasonably revoke a permit. 9.8 Subd. 5. [APPEAL.] (a) A telecommunications right-of-way 9.9 user that: (1) has been denied registration; (2) has been 9.10 denied a right-of-way permit; (3) has had its right-of-way 9.11 permit revoked; or (4) believes that the fees imposed on the 9.12 user by the local government unit do not conform to the 9.13 requirements of subdivision 6, may have the denial, revocation, 9.14 or fee imposition reviewed, upon written request, by the 9.15 governing body of the local government unit. The governing body 9.16 of the local government unit shall act on the request at its 9.17 next regularly scheduled meeting. A decision by the governing 9.18 body affirming the denial, revocation, or fee imposition must be 9.19 in writing and supported by written findings establishing the 9.20 reasonableness of the decision. 9.21 (b) Upon affirmation by the governing body of the denial, 9.22 revocation, or fee imposition, the telecommunications 9.23 right-of-way user shall have the right to have the matter 9.24 resolved by binding arbitration. Binding arbitration must be 9.25 before an arbitrator agreed to by both the local government unit 9.26 and the telecommunications right-of-way user. If the parties 9.27 cannot agree on an arbitrator, the matter must be resolved by a 9.28 three-person arbitration panel made up of one arbitrator 9.29 selected by the local government unit, one arbitrator selected 9.30 by the telecommunications right-of-way user and one person 9.31 selected by the other two arbitrators. The cost of the 9.32 arbitration must be borne equally by the local government unit 9.33 and the telecommunications right-of-way user. 9.34 Subd. 6. [FEES.] (a) A local government unit may recover 9.35 its right-of-way management costs by imposing a fee for 9.36 registration, a fee for each right-of-way permit, or, when 10.1 appropriate, a fee applicable to a particular telecommunications 10.2 right-of-way user when that user causes the local government 10.3 unit to incur costs as a result of actions or inactions of that 10.4 user. A local government unit may not recoup from a 10.5 telecommunications right-of-way user costs incurred, if any, 10.6 that are unrelated to the telecommunications right-of-way user's 10.7 use of the local government unit's right-of-way. 10.8 (b) Fees, or other right-of-way obligations, imposed by a 10.9 local government unit on telecommunications right-of-way users 10.10 under this section must be: 10.11 (1) based on an allocation among all users of the public 10.12 right-of-way, including the local government unit itself; 10.13 (2) based on the actual costs directly incurred by the 10.14 local government unit in managing the public right-of-way; and 10.15 (3) imposed on a competitively neutral basis. 10.16 (c) The duties and obligations imposed under this section 10.17 must be applied to all users of the public right-of-way, 10.18 including the local government unit. For users subject to the 10.19 franchising authority of a local government unit, those duties 10.20 and obligations may be addressed in, and satisfied according to, 10.21 the terms of an applicable franchise agreement. 10.22 Subd. 7. [ADDITIONAL RIGHTS-OF-WAY PROVISIONS.] (a) In 10.23 managing the public rights-of-way and in imposing fees under 10.24 this section, no local government unit may: 10.25 (1) discriminate among telecommunications right-of-way 10.26 users; 10.27 (2) grant a preference to any telecommunications 10.28 right-of-way user; or 10.29 (3) create or erect any unreasonable requirement for entry 10.30 to the public rights-of-way by telecommunications right-of-way 10.31 users. 10.32 (b) A telecommunications right-of-way user need not apply 10.33 for or obtain right-of-way permits for facilities that are 10.34 located in public rights-of-way on the effective date of this 10.35 section for which the user has obtained the required consent of 10.36 the local government unit, or that are otherwise lawfully 11.1 occupying the public right-of-way. However, the 11.2 telecommunications right-of-way user may be required to register 11.3 and to obtain right-of-way permits for excavations and 11.4 obstructions of, and facilities placed within, public 11.5 rights-of-way after the effective date of this section. 11.6 (c) A telecommunications right-of-way user may recover any 11.7 fees imposed by a local government unit under this section by 11.8 adding a surcharge to any telecommunications services it 11.9 provides to the citizens of the local government unit. The 11.10 surcharge is limited to recovering only the amount the fees 11.11 imposed. 11.12 (d) Data and documents exchanged between a local government 11.13 unit and a telecommunications right-of-way user are subject to 11.14 the terms of chapter 13. A local government unit not complying 11.15 with this paragraph is subject to the penalties set forth in 11.16 section 13.08. 11.17 (e) A local government unit may not collect a fee imposed 11.18 under this section through the provision of in-kind services by 11.19 a telecommunications right-of-way user, nor may a local 11.20 government unit require the provision of in-kind services as a 11.21 condition of consent to use the local government unit's public 11.22 right-of-way. 11.23 Subd. 8. [UNIFORM STATEWIDE STANDARDS.] (a) To ensure the 11.24 safe and convenient use of public rights-of-way in the state, 11.25 the public utilities commission shall develop and adopt by 11.26 August 1, 1998, statewide construction standards governing the 11.27 following terms and conditions, which conform to the principle 11.28 established in subdivision 1: 11.29 (1) the terms and conditions of right-of-way construction, 11.30 excavation, maintenance, and repair; and 11.31 (2) the terms and conditions under which telecommunications 11.32 facilities and equipment are placed in the public right-of-way. 11.33 (b) The public utilities commission is authorized to 11.34 review, upon complaint by an aggrieved party, a decision or 11.35 regulation by a local government unit that is alleged to violate 11.36 the principle established in subdivision 1. 12.1 (c) The commission may not preempt a local government unit 12.2 with regard to the regulation of a public right-of-way except 12.3 for violation of the principle established in subdivision 1. 12.4 Sec. 5. Minnesota Statutes 1996, section 237.74, 12.5 subdivision 5, is amended to read: 12.6 Subd. 5. [EXTENSION OF FACILITIES.] A telecommunications 12.7 carrier may extend its facilities into or through a statutory or 12.8 home rule charter city or town of this state for furnishing its 12.9 services, subject to theregulation of the governing body of the12.10city or town relative to the location of poles and wires and the12.11preservation of the safe and convenient use of streets and12.12alleys by the publicprovisions of sections 237.162 and 12.13 237.163. Nothing in this subdivision shall be construed to 12.14 allow or prohibit facilities bypass of the local exchange 12.15 telephone company, nor shall it be construed to prohibit the 12.16 commission from issuing orders concerning facilities bypass of 12.17 the local exchange telephone company. 12.18 Sec. 6. [237.79] [TELEPHONE COMPANY PROVIDING CABLE 12.19 SERVICE.] 12.20 A telephone company that provides cable television services 12.21 shall be subject to the same franchise requirements, procedures, 12.22 and fees, and public, educational, and government access 12.23 requirements as a cable communication company under chapter 238. 12.24 Sec. 7. [SCOPE.] 12.25 Sections 1 to 5 supersede sections 222.37, 300.03, and 12.26 300.04, and any ordinance, regulation, or rule to the contrary. 12.27 Sec. 8. [ADVISORY TASK FORCE; UNIFORM STATEWIDE 12.28 STANDARDS.] 12.29 The public utilities commission shall convene a task force 12.30 consisting of engineering and other experts representing, in 12.31 equal proportions: (1) local government units; and (2) affected 12.32 utilities and other users of the public rights-of-way, to 12.33 establish recommendations to the commission regarding the 12.34 uniform statewide standards required under section 4, 12.35 subdivision 8. In addition to those general standards, the 12.36 advisory task force shall provide recommendations to the 13.1 commission regarding: the calculation of degradation costs; the 13.2 establishment of geographical information mapping systems; the 13.3 establishment of high-density corridors within certain 13.4 rights-of-way; and the indemnification of local government units 13.5 by right-of-way users and other liability conditions. The 13.6 advisory task force shall complete its work and provide its 13.7 recommendations to the commission by January 15, 1998. The 13.8 public utilities commission shall incorporate the 13.9 recommendations of the advisory task force in the rules 13.10 developed and adopted by the commission under section 4, 13.11 subdivision 8. 13.12 Sec. 9. [REPEALER.] 13.13 Section 4, subdivision 5, is repealed, effective June 30, 13.14 1999. 13.15 Sec. 10. [EFFECTIVE DATE.] 13.16 Sections 1 to 8 are effective the day following final 13.17 enactment, except that section 4, subdivision 3, paragraph (b), 13.18 is effective upon adoption by the public utilities commission of 13.19 the rules required under section 4, subdivision 8.