HF 2907

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to utilities; replacing public utility 
  1.3             capital structure approval with security issuance 
  1.4             approval; defining telephone company; amending 
  1.5             Minnesota Statutes 1996, sections 216B.49, 
  1.6             subdivisions 3 and 4; and 237.01, subdivision 2; 
  1.7             repealing Minnesota Statutes 1996, section 216B.49, 
  1.8             subdivision 2. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 216B.49, 
  1.11  subdivision 3, is amended to read: 
  1.12     Subd. 3.  [COMMISSION APPROVAL REQUIRED.] It shall be 
  1.13  unlawful for any public utility organized under the laws of this 
  1.14  state to offer or sell any security or, if organized under the 
  1.15  laws of any other state or foreign country, to subject property 
  1.16  in this state to an encumbrance for the purpose of securing the 
  1.17  payment of any indebtedness unless the capital structure 
  1.18  security issuance of the public utility shall first be approved 
  1.19  by the commission.  Approval by the commission shall be by 
  1.20  formal written order. 
  1.21     Sec. 2.  Minnesota Statutes 1996, section 216B.49, 
  1.22  subdivision 4, is amended to read: 
  1.23     Subd. 4.  [CONSIDERATIONS FOR APPROVAL FOR PUBLIC 
  1.24  FINANCING.] Upon the application of a public utility for 
  1.25  approval of its capital structure security issuance and prior to 
  1.26  the issuance of any security or the encumbrance of any property 
  1.27  for the purpose of securing the payment of any indebtedness, the 
  2.1   commission may make such inquiry or investigation, hold such 
  2.2   hearings, and examine such witnesses, books, papers, documents, 
  2.3   or contracts, as in its discretion it may deem necessary.  Prior 
  2.4   to approval the commission shall ascertain that the amount of 
  2.5   securities of each class which any public utility may issue 
  2.6   shall bear a reasonable proportion to each other and to the 
  2.7   value of the property, due consideration being given to the 
  2.8   nature of the business of the public utility, its credit and 
  2.9   prospects, the possibility that the value of the property may 
  2.10  change from time to time, the effect which the issue shall have 
  2.11  upon the management and operation of the public utility, and 
  2.12  other considerations which the commission as a matter of fact 
  2.13  shall find to be relevant.  If the commission shall find that 
  2.14  the proposed capital structure security issuance is reasonable 
  2.15  and proper and in the public interest and will not be 
  2.16  detrimental to the interests of the consumers and patrons 
  2.17  affected thereby, the commission shall by written order grant 
  2.18  its permission for the proposed public financing. 
  2.19     Sec. 3.  Minnesota Statutes 1996, section 237.01, 
  2.20  subdivision 2, is amended to read: 
  2.21     Subd. 2.  [TELEPHONE COMPANY.] "Telephone company," means 
  2.22  and applies to any person, firm, association or any corporation, 
  2.23  private or municipal, owning or operating any telephone line or 
  2.24  telephone exchange for hire, wholly or partly within this state, 
  2.25  or furnishing any telephone service to the public. 
  2.26     A "telephone company" does not include a radio common 
  2.27  carrier as defined in subdivision 4.  A telephone company which 
  2.28  also conforms with the definition of a radio common carrier is 
  2.29  subject to regulation as a telephone company.  However, none of 
  2.30  chapter 237 applies to telephone company activities which 
  2.31  conform to the definition of a radio common carrier. 
  2.32     A "telephone company" does not include a telecommunications 
  2.33  carrier as defined in subdivision 6, except that a 
  2.34  telecommunications carrier is a telephone company for the 
  2.35  purposes of section 222.36.  A telephone company is not subject 
  2.36  to section 237.74. 
  3.1      A "telephone company" does not include or apply to any 
  3.2   public or private person or entity, however organized, merely 
  3.3   because the person or entity owns or operates a coin-operated or 
  3.4   public pay telephone. 
  3.5      Sec. 4.  [REPEALER.] 
  3.6      Minnesota Statutes 1996, section 216B.49, subdivision 2, is 
  3.7   repealed.