HF 1366

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; enacting Minnesota
Regulated Public Transit Utilities Act; providing for
regulation of transit services; requiring legislative
reports; proposing coding for new law as Minnesota
Statutes, chapter 216E.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

REGULATED PUBLIC TRANSIT UTILITIES

Section 1.

new text begin [216E.01] LEGISLATIVE FINDINGS; PUBLIC
POLICY.
new text end

new text begin It is hereby declared to be in the public interest that
persons be given the opportunity to become regulated public
transit utilities, as defined in section 216E.02, and that these
transit utilities be regulated in order to:
new text end

new text begin (1) encourage and support the marketplace development and
operation of coordinated, cost-effective, and competitive
multimodal transit services and infrastructure;
new text end

new text begin (2) eliminate or avoid unnecessary duplication of transit
utility facilities and services that increase costs of service
to the customer and taxpayer;
new text end

new text begin (3) ensure safe, adequate, reliable, economical, and
efficient transit services to the public at reasonable and
competitive rates, consistent with the financial and economic
requirements of transit utilities and their need to construct
facilities to provide the service; and
new text end

new text begin (4) minimize and prevent disputes between transit utilities
and between transit utilities and other transit service
providers that may result in inconvenience or diminish
efficiency in service to consumers.
new text end

Sec. 2.

new text begin [216E.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms used in this chapter
have the meanings given them in this section.
new text end

new text begin Subd. 2. new text end

new text begin Commission. new text end

new text begin "Commission" means the public
utilities commission.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of transportation.
new text end

new text begin Subd. 4. new text end

new text begin Department. new text end

new text begin "Department" means the department
of transportation.
new text end

new text begin Subd. 5. new text end

new text begin Exclusive service area. new text end

new text begin "Exclusive service
area" means the geographical area or corridor in which the
boundaries are established as provided in section 216E.04, free
from direct competition from other similar modes of transit
services that are publicly subsidized.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, a
governmental unit or other political subdivision, or any other
legal or commercial entity, however organized.
new text end

new text begin Subd. 7. new text end

new text begin Personal rapid transit. new text end

new text begin "Personal rapid transit"
is a transit system consisting of elevated guideways that allow
automated electrically driven vehicles to carry individuals
nonstop from any station on the system to any other station on
the system.
new text end

new text begin Subd. 8. new text end

new text begin Regulated public transit utility; transit
utility. new text end

new text begin "Regulated public transit utility" or "transit
utility" means a person operating, maintaining, or controlling
in this state equipment or facilities for furnishing personal
rapid transit service, or other transit service, to or for the
public pursuant to this chapter.
new text end

new text begin Subd. 9. new text end

new text begin Service. new text end

new text begin "Service" means the provision of
transit service, and services attendant thereto.
new text end

new text begin Subd. 10. new text end

new text begin Transit; transit service. new text end

new text begin "Transit" or
"transit service" means public transit as defined in section
174.22, subdivision 7, except that "transit" or "transit service"
includes urbanized area service, but does not include
paratransit.
new text end

Sec. 3.

new text begin [216E.03] TRANSIT UTILITY REGULATED AS PUBLIC
UTILITY.
new text end

new text begin A regulated public transit utility is subject to regulation
as a public utility under sections 216B.03 to 216B.23, 216B.25
to 216B.34, and 216B.43 to 216B.66.
new text end

Sec. 4.

new text begin [216E.04] ASSIGNED SERVICE AREA; TRANSIT
UTILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative policy. new text end

new text begin It is hereby declared
to be in the public interest that in order to meet the goals
established in section 216E.01, the state of Minnesota should be
divided, as need is determined, into geographic service areas or
corridors within which a specified regulated public transit
utility may be authorized to provide transit service to
customers. In furtherance of the public interest, the
commission may grant to a person the right to provide service
within a transit service area or corridor and this right to
provide transit service must be exclusive of direct competition
from any publicly subsidized transit services or publicly
subsidized provider of transit services; provided that,
competition may be allowed to the extent necessary for the
coordination and integration of various transit providers and
transit services.
new text end

new text begin Subd. 2. new text end

new text begin Exclusive service area petition and showing. new text end

new text begin A
person desiring to be designated a regulated public transit
utility for a specified service area or corridor, may petition
the commission for the right to provide a specific mode of
transit service within that specified service area or corridor
exclusive of direct competition from any publicly subsidized
transit services or publicly subsidized provider of transit
services. Upon receiving a petition, the commission shall give
notice to potentially affected parties and invite the submission
of competing proposals. The commission may grant that exclusive
right for that mode of transit service upon a showing by the
petitioning person:
new text end

new text begin (1) that the petitioner possesses the technical,
managerial, and financial resources to provide the proposed
transit services;
new text end

new text begin (2) that granting the petitioner the exclusive service
right for that area or corridor would ensure the provision of
safer, more cost-effective, or more efficient transit services
compared with other existing or potential providers of
comparable modes of transit services, or would otherwise further
the public interest as described in section 216E.01;
new text end

new text begin (3) that the petitioner consents to reimburse the
commission for costs associated with the proceeding and to be
regulated as provided in section 216E.03; and
new text end

new text begin (4) that the petitioner will provide reasonably comparable
or superior services to those provided by all existing publicly
subsidized transit services in that service area, if any, in a
coordinated, cost-effective, and competitive manner.
new text end

new text begin Subd. 3. new text end

new text begin Exclusive service right. new text end

new text begin After a petition is
granted under subdivision 2, the regulated public transit
utility has the right to provide transit services within its
service area or corridor exclusive of direct competition from
any publicly subsidized transit services or publicly subsidized
provider of transit services for a period of time to be
determined by the commissioner consistent with the
infrastructure and facility investment to be made by the transit
utility. A provider of publicly subsidized transit services
shall neither render nor extend transit service within the
exclusive service area or corridor of the transit utility
thereafter unless the transit utility consents in writing.
new text end

new text begin Subd. 4. new text end

new text begin Competition for exclusive right. new text end

new text begin The commission
shall establish procedures and standards by which persons may
compete for exclusive service rights under this section. The
commission shall require a regulated public transit utility to
make the showing required under subdivision 2 annually. The
commissioner may revoke or suspend the grant of exclusivity if
the transit utility fails to meet its obligations under this
chapter and related rules.
new text end

Sec. 5.

new text begin [216E.05] COMMISSIONER'S REPORT TO LEGISLATURE.
new text end

new text begin The commissioner shall monitor the provision of transit
services in this state, and the development of regulated public
transit utilities pursuant to this chapter. The commissioner
shall present a report to the legislature by January 15 of each
odd-numbered year as to the state of transit services, detailing
those areas of the state that are underserved, and provide
alternatives and recommendations for legislative action.
new text end