HF 1464

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to utilities; authorizing municipal and 
  1.3             cooperative utilities to form joint ventures for the 
  1.4             provision of utility services; proposing coding for 
  1.5             new law as Minnesota Statutes, chapter 453B; repealing 
  1.6             Laws 1996, chapter 300, section 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [453B.01] [JOINT VENTURE.] 
  1.9      Subdivision 1.  [APPLICABILITY.] This section applies to 
  1.10  home rule charter and statutory cities. 
  1.11     Subd. 2.  [DEFINITIONS.] These phrases have these meanings 
  1.12  in this section: 
  1.13     "Municipal utility" means the operations of a city with 
  1.14  respect to any public utilities described in section 452.01, 
  1.15  subdivision 3, and any other similar or related operations 
  1.16  authorized by law or charter. 
  1.17     "Governing body" means, with respect to each city which 
  1.18  operates a municipal utility, the city council, or if another 
  1.19  board, commission, or body is empowered by law or city charter 
  1.20  or by ordinance or resolution of the city council to control and 
  1.21  operate the municipal utility, the board, commission, or body is 
  1.22  the governing body. 
  1.23     "Cooperative association" means a cooperative association 
  1.24  organized under chapter 308A and engaged in public utilities 
  1.25  operations. 
  1.26     Subd. 3.  [AUTHORIZATION.] A municipal utility may enter 
  2.1   into a joint venture with a cooperative association to provide 
  2.2   utility services.  Retail electric utility services provided by 
  2.3   a joint venture must be within the boundaries of each utility's 
  2.4   exclusive electric service territory as shown on the map of 
  2.5   service territories maintained by the department of public 
  2.6   service, except as may otherwise be permitted by law.  The terms 
  2.7   and conditions of the joint venture are subject to ratification 
  2.8   by the governing bodies of the respective utilities and may 
  2.9   include the formation of a corporate or other separate legal 
  2.10  entity with an administrative and governance structure 
  2.11  independent of the respective utilities.  A corporate or other 
  2.12  separate legal entity, if formed: 
  2.13     (1) has the authority and legal capacity, and in the 
  2.14  exercise of joint venture powers, privileges, responsibilities 
  2.15  and duties authorized by this section, is subject to the law 
  2.16  applicable to the organization, internal governance, and 
  2.17  activities of the entity; 
  2.18     (2) may exercise in connection with its property and 
  2.19  affairs, and in connection with property within its control, any 
  2.20  and all powers that may be exercised by a natural person or a 
  2.21  private corporation or other private legal entity in connection 
  2.22  with similar property and affairs; and 
  2.23     (3) is a public body or authority, government entity, 
  2.24  municipal corporation or political subdivision, except that, 
  2.25  regardless of its form of organization, a joint venture, 
  2.26  including any separate legal entity, if formed, may elect to be 
  2.27  deemed a municipal utility or a cooperative association for 
  2.28  purposes of chapter 216B or other federal or state law 
  2.29  regulating utility operations. 
  2.30     Subd. 4.  [POWERS.] (a) A joint venture under this section 
  2.31  has those powers, privileges, responsibilities, and duties of 
  2.32  the separate utilities entering into the joint venture as the 
  2.33  joint venture agreement may provide, including the powers under 
  2.34  paragraph (b), except that with respect to retail electric 
  2.35  utility services a joint venture must not exercise the power of 
  2.36  eminent domain or the authority under section 216B.44 to enlarge 
  3.1   the service territory served by the joint venture, unless 
  3.2   otherwise permitted by law. 
  3.3      (b) Joint venture powers include, but are not limited to, 
  3.4   the authority to: 
  3.5      (1) finance, own, acquire, construct, and operate 
  3.6   facilities necessary to provide utility services to wholesale or 
  3.7   retail customers, including generation, transmission, and 
  3.8   distribution facilities; 
  3.9      (2) combine assigned service territories, in whole or in 
  3.10  part, upon notice to, and hearing by, the public utilities 
  3.11  commission; 
  3.12     (3) serve customers in the utilities' service territories 
  3.13  or in the combined service territory; 
  3.14     (4) combine, share, or employ administrative, managerial, 
  3.15  operational, or other staff, if combining or sharing will not 
  3.16  degrade safety, reliability, or customer service standards; 
  3.17     (5) provide for joint administrative functions, such as 
  3.18  meter reading and billing; 
  3.19     (6) purchase or sell utility services at wholesale for 
  3.20  resale to customers; 
  3.21     (7) provide conservation programs, other utility programs, 
  3.22  and public interest programs, such as cold weather shut-off 
  3.23  protection, and conservation spending programs as required by 
  3.24  law and rule; and 
  3.25     (8) participate as the parties deem necessary in providing 
  3.26  utility services with other municipal utilities, cooperative 
  3.27  utilities, investor-owned utilities, or other entities, public 
  3.28  or private. 
  3.29     Subd. 5.  [CONSTRUCTION.] This section must be construed 
  3.30  liberally to effect its legislative intent and purpose, as 
  3.31  complete and independent authority for the performance of each 
  3.32  and every act and thing authorized by this section, and all 
  3.33  authority granted must be broadly interpreted to effect this 
  3.34  intent and purpose and not as a limit of powers.  The powers 
  3.35  conferred by this section are in addition to the powers 
  3.36  conferred by other law or charter.  A joint venture under this 
  4.1   section, and a municipal utility with respect to any joint 
  4.2   venture under this section, has the powers, privileges, 
  4.3   responsibilities, and duties necessary or appropriate to effect 
  4.4   the intent and purpose of this section, including, but not 
  4.5   limited to, the expenditure of public funds and the transfer of 
  4.6   real or personal property in accordance with the terms and 
  4.7   conditions of the joint venture and the joint venture agreement, 
  4.8   notwithstanding a city charter or other law denying, limiting or 
  4.9   placing conditions on the exercise of the powers.  If there is a 
  4.10  conflict or inconsistency between this section and another law 
  4.11  or charter provision, this section prevails. 
  4.12     Nothing in this section shall be construed to supersede or 
  4.13  affect: 
  4.14     (1) the power of a city council conferred by charter to 
  4.15  overrule or override any action of a governing body; 
  4.16     (2) section 216B.42; or 
  4.17     (3) any referendum requirements applicable to the creation 
  4.18  of a municipal utility, or the acquisition of utility property, 
  4.19  under sections 216B.46, 237.19, and 412.321. 
  4.20     Sec. 2.  [REPEALER.] 
  4.21     Laws 1996, chapter 300, section 1, is repealed. 
  4.22     Sec. 3.  [EFFECTIVE DATE.] 
  4.23     Sections 1 and 2 are effective the day following final 
  4.24  enactment.