1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state departments; abolishing the 1.3 department of public service; transferring certain 1.4 responsibilities and personnel to other agencies; 1.5 amending Minnesota Statutes 1994, sections 8.33; 1.6 15.01; 116C.03, subdivision 2; 216A.01; 216A.035; 1.7 216A.036; 216A.04; 216A.05, by adding a subdivision; 1.8 216A.07; 216A.085; 216A.095; 216B.02, subdivision 7, 1.9 and by adding subdivisions; 216B.16, subdivision 2; 1.10 216B.162, subdivision 7; 216B.241, subdivisions 1 and 1.11 2; 216B.62; 216B.64; 216B.65; 216C.01, subdivisions 2, 1.12 3, and by adding a subdivision; 216C.10; 216C.37, 1.13 subdivision 1; 237.02; 237.075, subdivision 2; 1.14 237.295; 237.30; 239.01; and 239.05, subdivisions 6c, 1.15 7a, and 8; proposing coding for new law in Minnesota 1.16 Statutes, chapter 216C; repealing Minnesota Statutes 1.17 1994, sections 216A.06; 216B.02, subdivision 8; and 1.18 237.69, subdivision 3. 1.19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.20 ARTICLE 1 1.21 PUBLIC SERVICE ABOLISHED 1.22 Section 1. [DEPARTMENT OF PUBLIC SERVICE ABOLISHED; 1.23 RESPONSIBILITIES TRANSFERRED.] 1.24 Subdivision 1. [DEPARTMENT ABOLISHED; RESPONSIBILITIES 1.25 TRANSFERRED.] The department of public service is abolished. 1.26 The responsibilities held by the department are transferred to a 1.27 receiving agency as designated in this article. Except as 1.28 otherwise provided by this article, the responsibilities of the 1.29 department must be transferred under Minnesota Statutes, section 1.30 15.039. For the purposes of this article, "responsibilities" 1.31 means the powers, duties, rights, obligations, rules, court 1.32 actions, contracts, records, property of every description, 2.1 unexpended funds, personnel, and authority imposed by law of the 2.2 department of public service. For the purposes of this article, 2.3 "receiving agency" has the meaning given it in Minnesota 2.4 Statutes, section 15.039, subdivision 1. 2.5 Subd. 2. [SPECIFIC POSITIONS ABOLISHED.] The following 2.6 positions in the department of public service are not 2.7 transferred to a receiving agency and are specifically abolished: 2.8 (1) commissioner; 2.9 (2) deputy commissioner; 2.10 (3) assistant commissioner; and 2.11 (4) executive assistant. 2.12 Subd. 3. [ATTORNEY GENERAL.] The responsibility for 2.13 intervention as a party in all public utility and 2.14 telecommunications matters before the public utilities 2.15 commission is transferred to the utility consumers division of 2.16 the attorney general's office. 2.17 Subd. 4. [PUBLIC UTILITIES COMMISSION.] (a) The following 2.18 responsibilities are transferred to the public utilities 2.19 commission: 2.20 (1) the intervention office that represents the interests 2.21 of Minnesota residents, businesses, and governments before 2.22 bodies and agencies outside the state that make, interpret, or 2.23 implement national and international energy policy; 2.24 (2) enforcement of Minnesota Statutes, chapters 216A, 216B, 2.25 216C, and 237, and orders of the public utilities commission 2.26 under those chapters; 2.27 (3) conservation improvement; and 2.28 (4) all other responsibilities related to energy 2.29 production, transportation, transmission, consumption, 2.30 conservation, and efficiency. 2.31 (b) The positions and personnel of the department of public 2.32 service related to the responsibilities listed in paragraph (a) 2.33 are transferred to the public utilities commission. 2.34 Subd. 5. [DEPARTMENT OF AGRICULTURE.] The division of 2.35 weights and measures is transferred to the department of 2.36 agriculture. 3.1 Subd. 6. [RULES.] All rules adopted by the department of 3.2 public service before the effective date of this article become 3.3 rules of the agency to which the appropriate rulemaking 3.4 authority is transferred by this article. 3.5 ARTICLE 2 3.6 CONFORMING AMENDMENTS 3.7 Section 1. Minnesota Statutes 1994, section 8.33, is 3.8 amended to read: 3.9 8.33 [REPRESENTATION OF CONSUMER AND SMALL BUSINESS 3.10 INTEREST IN PUBLIC UTILITY MATTERS.] 3.11 Subdivision 1. [DEFINITIONS.] For the purposes of this 3.12 section, the following terms have the meanings given them: 3.13 (1) "Public utility" means a publicly or privately owned 3.14 entity engaged in supplying utility services to residential 3.15 utility consumers in this state or to another public utility for 3.16 ultimate distribution to residential utility consumers in this 3.17 state and whose rates or charges are subject to approval by the 3.18 public utilities commission or an agency of the federal 3.19 government. No municipal or cooperative utility shall be 3.20 considered a "public utility" for the purposes of this clause. 3.21 (2) "Residential and small businessUtility consumer" or 3.22 "consumer" means a personor small business, firm, association, 3.23 partnership, or corporation that uses utility services atthe3.24person'sa residence or business location in this state and who 3.25 is billed by or pays a public utility for these services. 3.26 (3) "Small business" has the meaning given it in section 3.27 645.445. 3.28(3)(4) "Utility services" means electricity, natural gas, 3.29 or telephone services distributed to residential utility 3.30 consumers by a public utility. 3.31 A utility consumers division is established in the office 3.32 of the attorney general to carry out the duties assigned to the 3.33 attorney general under this section. 3.34 Subd. 2. [DIVISION ESTABLISHED; DUTIES.] (a) A utility 3.35 consumers division is established in the office of the attorney 3.36 general to carry out the duties assigned to the attorney general 4.1 under this section. 4.2 (b) The attorney general is responsible for representing 4.3 and furthering the interests ofresidential and small business4.4 utility consumers, other than utility consumers who represent 4.5 their own interests, through participation in matters before the 4.6 public utilities commission involving utility rates and adequacy 4.7 of utility services toresidential or small businessutility 4.8 consumers. The attorney general shall expend a reasonable 4.9 portion of effort among all three kinds of utility services and 4.10 shall identify and promote the needs of each class 4.11 ofresidential and small businessconsumers with respect to each 4.12 of the utility services. 4.13 Subd. 3. [RIGHT OF INTERVENTION.] Subject to the 4.14 limitations of subdivision 2, the attorney general may intervene 4.15 as of right or participate as an interested party in matters 4.16 pending before the public utilities commission which affect the 4.17 distribution by a public utility of utility services to 4.18residential or small businessutility consumers. When 4.19 intervening in gas or electric hearings, the attorney general 4.20 shall prepare and defend testimony designed to encourage energy 4.21 conservation improvements as defined in section 216B.241. The 4.22 right of the attorney general to participate or intervene does 4.23 not affect the obligation of the public utilities commission to 4.24 protect the public interest. 4.25 Subd. 4. [NOTICE; PROCEDURES.] The public utilities 4.26 commission shall give reasonable notice to the attorney general 4.27 of any matter scheduled to come before the commission affecting 4.28 a public utility's rates or adequacy of services toresidential4.29or small businessutility consumers. Rules of the commission 4.30 governing procedures before the commission apply to the attorney 4.31 general and the attorney general's employees or 4.32 representatives. The attorney general has the same rights and 4.33 privileges accorded other intervenors or participants in matters 4.34 pending before the commission. 4.35 Subd. 5. [APPEALS.] The attorney general has an interest 4.36 sufficient to maintain, intervene as of right in, or otherwise 5.1 participate in any civil action in the courts of this state for 5.2 the review or enforcement of any public utilities commission 5.3 action which affects a public utility's rates or adequacy of 5.4 service toresidential or small businessutility consumers. 5.5 Subd. 6. [INTERVENTION IN FEDERAL PROCEEDINGS.] The 5.6 attorney general and the public utilities commission shall 5.7 jointly represent and further the interests ofresidential and5.8small businessutility consumers through participation as an 5.9 intervenor or interested party in federal proceedings relating 5.10 to the regulation of: (a) wholesale rates for energy delivered 5.11 through interstate facilities; or (b) fuel used in generation of 5.12 electricity or the manufacture of gas. The attorney general may 5.13 maintain, intervene in, or otherwise participate in civil 5.14 actions relating to the federal proceedings. 5.15 Subd. 7. [ADDITIONAL POWERS.] The power granted by this 5.16 section is in addition to powers otherwise provided by law to 5.17 the attorney general. 5.18 Sec. 2. Minnesota Statutes 1994, section 15.01, is amended 5.19 to read: 5.20 15.01 [DEPARTMENTS OF THE STATE.] 5.21 The following agencies are designated as the departments of 5.22 the state government: the department of administration; the 5.23 department of agriculture; the department of commerce; the 5.24 department of corrections; the department of education; the 5.25 department of economic security; the department of trade and 5.26 economic development; the department of finance; the department 5.27 of health; the department of human rights; the department of 5.28 labor and industry; the department of military affairs; the 5.29 department of natural resources; the department of employee 5.30 relations; the department of public safety;the department of5.31public service;the department of human services; the department 5.32 of revenue; the department of transportation; the department of 5.33 veterans affairs; and their successor departments. 5.34 Sec. 3. Minnesota Statutes 1994, section 116C.03, 5.35 subdivision 2, is amended to read: 5.36 Subd. 2. [MEMBERSHIP.] The members of the board are the 6.1 director of the office of strategic and long-range planning, the 6.2commissioner of public servicedirector of the division of 6.3 energy in the public utilities commission, the commissioner of 6.4 the pollution control agency, the commissioner of natural 6.5 resources, the director of the office of environmental 6.6 assistance, the commissioner of agriculture, the commissioner of 6.7 health, the commissioner of transportation, the chair of the 6.8 board of water and soil resources, and a representative of the 6.9 governor's office designated by the governor. The governor 6.10 shall appoint five members from the general public to the board, 6.11 subject to the advice and consent of the senate. At least two 6.12 of the five public members must have knowledge of and be 6.13 conversant in water management issues in the state. 6.14 Notwithstanding the provisions of section 15.06, subdivision 6, 6.15 members of the board may not delegate their powers and 6.16 responsibilities as board members to any other person. 6.17 Sec. 4. Minnesota Statutes 1994, section 216A.01, is 6.18 amended to read: 6.19 216A.01 [ESTABLISHMENT OF DEPARTMENT AND COMMISSION.] 6.20 Thereareis hereby created and established thedepartment6.21of public service, and thepublic utilities commission. The 6.22department of public serviceutility consumers division of the 6.23 attorney general's office shall have and possess all of the 6.24 rights and powers and perform all of the duties vested in it by 6.25 this chapter. The public utilities commission shall have and 6.26 possess all of the rights and powers and perform all of the 6.27 duties vested in it by this chapter, and those formerly vested 6.28 by law in the railroad and warehouse commission. 6.29 Sec. 5. Minnesota Statutes 1994, section 216A.035, is 6.30 amended to read: 6.31 216A.035 [CONFLICT OF INTEREST.] 6.32 (a) No person, while a member of the public utilities 6.33 commission, while acting as executivesecretarydirector of the 6.34 commission, or while employed in a professional capacity by the 6.35 commission, shall receive any income, other than dividends or 6.36 other earnings from a mutual fund or trust if these earnings do 7.1 not constitute a significant portion of the person's income, 7.2 directly or indirectly from any public utility or other 7.3 organization subject to regulation by the commission. 7.4 (b) No person is eligible to be appointed as a member of 7.5 the commission if the person has been employed with an entity, 7.6 or an affiliated company of an entity, that is subject to rate 7.7 regulation by the commission within one year from the date when 7.8 the person's term on the commission will begin. 7.9 (c) No person who is an employee of thepublic service7.10departmentutility consumers division of the attorney general's 7.11 office shall participate in any manner in any decision or action 7.12 of the commission where that person has a direct or indirect 7.13 financial interest. Each commissioner or employee of thepublic7.14service departmentutility consumers division who is in the 7.15 general professional, supervisory, or technical units 7.16 established in section 179A.10 or who is a professional, 7.17 supervisory, or technical employee defined as confidential in 7.18 section 179A.03, subdivision 4, or who is a management 7.19 classification employee and whose duties are related to public 7.20 utilities or transportation regulation shall report to the 7.21 ethical practices board annually before April 15 any interest in 7.22 an industry or business regulated by the commission. Each 7.23 commissioner shall file a statement of economic interest as 7.24 required by section 10A.09 with the ethical practices board and 7.25 the public utilities commission before taking office. The 7.26 statement of economic interest must state any interest that the 7.27 commissioner has in an industry or business regulated by the 7.28 commission. 7.29 (d) A professional employee of the commission or department 7.30 must immediately disclose to the commission or to the 7.31 commissioner of the department, respectively, any communication, 7.32 direct or indirect, with a person who is a party to a pending 7.33 proceeding before the commission regarding future benefits, 7.34 compensation, or employment to be received from that person. 7.35 Sec. 6. Minnesota Statutes 1994, section 216A.036, is 7.36 amended to read: 8.1 216A.036 [EMPLOYMENT RESTRICTIONS.] 8.2 (a) A person who serves as(1)acommissionermember of the 8.3 public utilities commission, (2) commissioner of the department8.4of public service, or (3) deputy commissioner of the department,8.5 shall not, while employed with or within one year after leaving 8.6 the commission,or department,accept employment with, receive 8.7 compensation directly or indirectly from, or enter into a 8.8 contractual relationship with an entity, or an affiliated 8.9 company of an entity, that is subject to rate regulation by the 8.10 commission. 8.11 (b) An entity or an affiliated company of an entity that is 8.12 subject to rate regulation by the commission, or a person acting 8.13 on behalf of the entity, shall not negotiate or offer to employ 8.14 or compensate a commissioner of the public utilities commission,8.15the commissioner of public service, or the deputy commissioner,8.16 while the person isso employeda member of the commission or 8.17 within one year after the person leavesthat employmentthe 8.18 commission. 8.19 (c) For the purposes of this section, "affiliated company" 8.20 means a company that controls, is controlled by, or is under 8.21 common control with an entity subject to rate regulation by the 8.22 commission. 8.23 (d) A person who violates this section is subject to a 8.24 civil penalty not to exceed $10,000 for each violation. The 8.25 attorney general may bring an action in district court to 8.26 collect the penalties provided in this section. 8.27 Sec. 7. Minnesota Statutes 1994, section 216A.04, is 8.28 amended to read: 8.29 216A.04 [EXECUTIVESECRETARYDIRECTOR; EMPLOYEES.] 8.30 Subdivision 1. [SELECTION OF EXECUTIVESECRETARY8.31 DIRECTOR.] The commission shall appoint an executivesecretary8.32 director, not a member, who shall be in the unclassified service 8.33 of the state and shall serve at the pleasure of the commission. 8.34 The executivesecretarydirector shall take, subscribe and file 8.35 an oath similar to that required of the commissioners, and shall 8.36 be subject to the same disqualifications as commissioners. 9.1 Subd. 1a. [POWERS AND DUTIES OF EXECUTIVESECRETARY9.2 DIRECTOR.] The executivesecretarydirector shall: 9.3 (1) cause to be kept full and correct records of all 9.4 transactions and proceedings of the commission; 9.5 (2) appoint, subject to chapter 43A and the approval of the 9.6 commission, the director of the energy division and all other 9.7 classified employees of the commission and supervise and direct 9.8 their activities; 9.9 (3) have custody of the seal of the commission; 9.10 (4) serve as the administrative officer of the commission 9.11 with responsibility for personnel, budget and other 9.12 administrative details related to the work of the commission or 9.13 as required by state law; 9.14 (5) prepare orders, reports, and other materials as 9.15 assigned by the commission and recommend to the commission such 9.16 measures as may be appropriate to achieve the objectives of the 9.17 commission; 9.18 (6) advise the commission of its financial position and 9.19 recommend a budget for its approval; and 9.20 (7) perform other duties as the commission directs. 9.21 Subd. 2. [ACTINGSECRETARYEXECUTIVE DIRECTOR.] The 9.22 commission may designate any responsible employee to serve as 9.23 actingsecretarydirector in the absence of thesecretary9.24 director. 9.25 Subd. 3. [OFFICERS AND EMPLOYEES.] The commission may 9.26 establish other positions in the unclassified service if the 9.27 positions meet the criteria of section 43A.08, subdivision 1a, 9.28 clauses (a) to (g). The commission may employ other persons as 9.29 may be necessary to carry out its functions. 9.30 Hearing reporters may provide transcripts of proceedings 9.31 before the commission to persons requesting transcripts who pay 9.32 a reasonable charge therefor to the reporter. The amount of the 9.33 charge shall be fixed by the commission and retained by the 9.34 reporter, any other law to the contrary notwithstanding. 9.35 Sec. 8. Minnesota Statutes 1994, section 216A.05, is 9.36 amended by adding a subdivision to read: 10.1 Subd. 1a. [ADMINISTRATIVE FUNCTIONS.] The commission shall 10.2 delegate to the executive director, to the greatest extent 10.3 practicable, performance of any administrative functions 10.4 assigned to the commission by the legislature. 10.5 Sec. 9. Minnesota Statutes 1994, section 216A.07, is 10.6 amended to read: 10.7 216A.07 [COMMISSIONEREXECUTIVE DIRECTOR; POWERS AND 10.8 DUTIES.] 10.9 Subdivision 1. [ADMINISTRATIVE DUTIES.] Thecommissioner10.10shall be the executive and administrative head of the public10.11service department and shall have and possessexecutive director 10.12 of the commission has and possesses all the rights and powers 10.13 and shall perform all the duties relating to the 10.14 administrativefunction of the department asfunctions set forth 10.15 in this chapter and chapters 216B and 237. Thecommissioner10.16 executive director may: 10.17 (1) prepare all forms or blanks for the purpose of 10.18 obtaining information which the commissioner may deem necessary 10.19 or useful in the proper exercise of the authority and duties of 10.20 the commissioner in connection with regulated businesses; 10.21 (2) prescribe the time and manner within which forms or 10.22 blanks shall be filed with the department; 10.23 (3) inspect at all reasonable times, and copy the books, 10.24 records, memoranda and correspondence or other documents and 10.25 records of any person relating to any regulated business; and 10.26 (4) cause the deposition to be taken of any person 10.27 concerning the business and affairs of any business regulated by 10.28 thedepartmentcommission. Information sought through said 10.29 deposition shall be for a lawfully authorized purpose and shall 10.30 be relevant and material to the investigation or hearing before 10.31 the commission. Information obtained from said deposition shall 10.32 be used by thedepartmentcommission only for a lawfully 10.33 authorized purpose and pursuant to powers and responsibilities 10.34 conferred upon thedepartmentcommission. Said deposition is to 10.35 be taken in the manner prescribed by law for taking depositions 10.36 in civil actions in the district court. 11.1 Subd. 2. [ENFORCEMENT.] Thecommissionerexecutive 11.2 director is responsible for the enforcement of chapters 216A, 11.3 216B and 237 and the orders of the commission issued pursuant to 11.4 those chapters. 11.5Subd. 3. [INTERVENTION IN PROCEEDINGS.] The commissioner11.6may intervene as a party in all proceedings before the11.7commission. When intervening in gas or electric hearings, the11.8commissioner shall prepare and defend testimony designed to11.9encourage energy conservation improvements as defined in section11.10216B.241. The attorney general shall act as counsel in the11.11proceedings.11.12 Subd. 4. [INVESTIGATIONS.] Thecommissionerexecutive 11.13 director may, on thecommissioner'sexecutive director's own 11.14 initiative, investigate any matter subject to the jurisdiction 11.15 of thedepartment orcommission. 11.16 Subd. 5. [RULEMAKING.] Thecommissionerexecutive director 11.17 shall make substantive and procedural rules to implement the 11.18 provisions of this chapter and chapters 216B and 237. Rules 11.19 adopted under this authority shall be promulgated pursuant to 11.20 the administrative procedure act and shall have the force and 11.21 effect of law. 11.22 Sec. 10. Minnesota Statutes 1994, section 216A.085, is 11.23 amended to read: 11.24 216A.085 [ENERGY ISSUES INTERVENTION OFFICE.] 11.25 Subdivision 1. [CREATION.] There is created within the 11.26department of public serviceenergy division of the public 11.27 utilities commission an intervention office to represent the 11.28 interests of Minnesota residents, businesses, and governments 11.29 before bodies and agencies outside the state that make, 11.30 interpret, or implement national and international energy policy. 11.31 Subd. 2. [DUTIES.] The intervention office shall determine 11.32 those areas in which state intervention is most needed, most 11.33 likely to have a positive impact, and most effective for the 11.34 broad public interest of the state. The office shall seek 11.35 recommendations from appropriate public and private sources 11.36 before deciding which cases merit intervention. 12.1 Subd. 3. [STAFFING.] The intervention office shall be 12.2 under the control and supervision of thecommissioner of the12.3department of public servicedirector of the energy 12.4 division. On approval by the executive director of the 12.5 commission, thecommissionerdirector may hire staff or contract 12.6 for outside services as needed to carry out the purposes of this 12.7 section. The attorney general shall act as counsel in all 12.8 intervention proceedings. 12.9 Sec. 11. Minnesota Statutes 1994, section 216A.095, is 12.10 amended to read: 12.11 216A.095 [INTERAGENCY COOPERATIONBETWEEN DEPARTMENT AND12.12COMMISSION.] 12.13 Nothing in this chapter prevents thedepartmentattorney 12.14 general or the commission from entering into agreements with 12.15 each other or with other agencies to coordinate and share 12.16 services, to conduct joint projects or investigations on matters 12.17 within the authority and jurisdiction of the parties thereto, or 12.18 to temporarily assign staff to projects requested by each other 12.19 or by other agencies. The cooperative agreements may provide 12.20 for the sharing of costs between the parties thereto or the 12.21 reimbursement of the department or commission operating budget 12.22 for expenditures made on behalf of the department or commission 12.23 or agency. No cooperative effort shall interfere with the 12.24 independence and integrity of either the commission or the 12.25 department or any other agency that is a party. 12.26 Sec. 12. Minnesota Statutes 1994, section 216B.02, 12.27 subdivision 7, is amended to read: 12.28 Subd. 7. [COMMISSION.] "Commission" means the public 12.29 utilities commissionof the department of public service. 12.30 Sec. 13. Minnesota Statutes 1994, section 216B.02, is 12.31 amended by adding a subdivision to read: 12.32 Subd. 8a. [DIRECTOR.] "Director" means the director of the 12.33 energy division. 12.34 Sec. 14. Minnesota Statutes 1994, section 216B.02, is 12.35 amended by adding a subdivision to read: 12.36 Subd. 8b. [ENERGY DIVISION.] "Energy division" means the 13.1 energy division established in chapter 216C. 13.2 Sec. 15. Minnesota Statutes 1994, section 216B.02, is 13.3 amended by adding a subdivision to read: 13.4 Subd. 8c. [EXECUTIVE DIRECTOR.] "Executive director" means 13.5 the executive director of the public utilities commission. 13.6 Sec. 16. Minnesota Statutes 1994, section 216B.16, 13.7 subdivision 2, is amended to read: 13.8 Subd. 2. [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 13.9 DETERMINATION DEFINED.] (a) Whenever there is filed with the 13.10 commission a schedule modifying or resulting in a change in any 13.11 rates then in force as provided in subdivision 1, the commission 13.12 may suspend the operation of the schedule by filing with the 13.13 schedule of rates and delivering to the affected utility a 13.14 statement in writing of its reasons for the suspension at any 13.15 time before the rates become effective. The suspension shall 13.16 not be for a longer period than ten months beyond the initial 13.17 filing date except as provided in this subdivision or 13.18 subdivision 1a. During the suspension the commission shall 13.19 determine whether all questions of the reasonableness of the 13.20 rates requested raised by persons deemed interested or by the 13.21administrative division of the department of public13.22serviceutility consumers division of the attorney general's 13.23 office can be resolved to the satisfaction of the commission. 13.24 If the commission finds that all significant issues raised have 13.25 not been resolved to its satisfaction, or upon petition by ten 13.26 percent of the affected customers or 250 affected customers, 13.27 whichever is less, it shall refer the matter to the office of 13.28 administrative hearings with instructions for a public hearing 13.29 as a contested case pursuant to chapter 14, except as otherwise 13.30 provided in this section. The commission may order that the 13.31 issues presented by the proposed rate changes be bifurcated into 13.32 two separate hearings as follows: (1) determination of the 13.33 utility's revenue requirements and (2) determination of the rate 13.34 design. Upon issuance of both administrative law judge reports, 13.35 the issues shall again be joined for consideration and final 13.36 determination by the commission. All prehearing discovery 14.1 activities of state agency intervenors shall be consolidated and 14.2 conducted by the department of public service. If the 14.3 commission does not make a final determination concerning a 14.4 schedule of rates within ten months after the initial filing 14.5 date, the schedule shall be deemed to have been approved by the 14.6 commission; except if: 14.7 (1) an extension of the procedural schedule has been 14.8 granted under subdivision 1a, in which case the schedule of 14.9 rates is deemed to have been approved by the commission on the 14.10 last day of the extended period of suspension; or 14.11 (2) a settlement has been submitted to and rejected by the 14.12 commission and the commission does not make a final 14.13 determination concerning the schedule of rates, the schedule of 14.14 rates is deemed to have been approved 60 days after the initial 14.15 or, if applicable, the extended period of suspension. 14.16 (b) If the commission finds that it has insufficient time 14.17 during the suspension period to make a final determination of a 14.18 case involving changes in general rates because of the need to 14.19 make final determinations of other previously filed cases 14.20 involving changes in general rates under this section or section 14.21 237.075, the commission may extend the suspension period to the 14.22 extent necessary to allow itself 20 working days to make the 14.23 final determination after it has made final determinations in 14.24 the previously filed cases. An extension of the suspension 14.25 period under this paragraph does not alter the setting of 14.26 interim rates under subdivision 3. 14.27 (c) For the purposes of this section, "final determination" 14.28 means the initial decision of the commission and not any order 14.29 which may be entered by the commission in response to a petition 14.30 for rehearing or other further relief. The commission may 14.31 further suspend rates until it determines all those petitions. 14.32 Sec. 17. Minnesota Statutes 1994, section 216B.162, 14.33 subdivision 7, is amended to read: 14.34 Subd. 7. [COMMISSION DETERMINATION.] Except as provided 14.35 under subdivision 6, competitive rates offered by electric 14.36 utilities under this section must be filed with the commission 15.1 and must be approved, modified, or rejected by the commission 15.2 within 90 days. The utility's filing must include statements of 15.3 fact demonstrating that the proposed rates meet the standards of 15.4 this subdivision. The filing must be served onthe department15.5of public service andthe office of the attorney general at the 15.6 same time as it is served on the commission. In reviewing a 15.7 specific rate proposal, the commission shall determine: 15.8 (1) that the rate meets the terms and conditions in 15.9 subdivision 4, unless the commission determines that waiver of 15.10 one or more terms and conditions would be in the public 15.11 interest; 15.12 (2) that the consumer can obtain its energy requirements 15.13 from an energy supplier not rate-regulated by the commission 15.14 under section 216B.16; 15.15 (3) that the customer is not likely to take service from 15.16 the electric utility seeking to offer the competitive rate if 15.17 the customer was charged the electric utility's standard 15.18 tariffed rate; and 15.19 (4) that after consideration of environmental and 15.20 socioeconomic impacts it is in the best interest of all other 15.21 customers to offer the competitive rate to the customer subject 15.22 to effective competition. 15.23 If the commission approves the competitive rate, it becomes 15.24 effective as agreed to by the electric utility and the 15.25 customer. If the competitive rate is modified by the 15.26 commission, the commission shall issue an order modifying the 15.27 competitive rate subject to the approval of the electric utility 15.28 and the customer. Each party has ten days in which to reject 15.29 the proposed modification. If no party rejects the proposed 15.30 modification, the commissioner's order becomes final. If either 15.31 party rejects the commission's proposed modification, the 15.32 electric utility, on its behalf or on the behalf of the 15.33 customer, may submit to the commission a modified version of the 15.34 commission's proposal. The commission shall accept or reject 15.35 the modified version within 30 days. If the commission rejects 15.36 the competitive rate, it shall issue an order indicating the 16.1 reasons for the rejection. 16.2 Sec. 18. Minnesota Statutes 1994, section 216B.241, 16.3 subdivision 1, is amended to read: 16.4 Subdivision 1. [DEFINITIONS.] For purposes of this 16.5 section, the terms defined in this subdivision have the meanings 16.6 given them. 16.7 (a) "Commission" means the public utilities commission. 16.8 (b)"Commissioner""Director" means thecommissioner of16.9public servicedirector of the energy division. 16.10 (c)"Department""Division" means thedepartment of public16.11serviceenergy division. 16.12 (d) "Energy conservation improvement" means the purchase or 16.13 installation of a device, method, or material that reduces 16.14 consumption of or increases efficiency in the use of electricity 16.15 or natural gas, including, but not limited to: 16.16 (1) insulation and ventilation; 16.17 (2) storm or thermal doors or windows; 16.18 (3) caulking and weatherstripping; 16.19 (4) furnace efficiency modifications; 16.20 (5) thermostat or lighting controls; 16.21 (6) awnings; or 16.22 (7) systems to turn off or vary the delivery of energy. 16.23 The term "energy conservation improvement" includes a device or 16.24 method that creates, converts, or actively uses energy from 16.25 renewable sources such as solar, wind, and biomass, provided 16.26 that the device or method conforms with national or state 16.27 performance and quality standards whenever applicable. 16.28 (e) "Investments and expenses of a public utility" includes 16.29 the investments and expenses incurred by a public utility in 16.30 connection with an energy conservation improvement including, 16.31 but not limited to: 16.32 (1) the differential in interest cost between the market 16.33 rate and the rate charged on a no interest or below market 16.34 interest loan made by a public utility to a customer for the 16.35 purchase or installation of an energy conservation improvement; 16.36 (2) the difference between the utility's cost of purchase 17.1 or installation of energy conservation improvements and any 17.2 price charged by a public utility to a customer for such 17.3 improvements. 17.4 Sec. 19. Minnesota Statutes 1994, section 216B.241, 17.5 subdivision 2, is amended to read: 17.6 Subd. 2. [PROGRAMS.] Thecommissionerdirector may by rule 17.7 require public utilities to make investments and expenditures in 17.8 energy conservation improvements, explicitly setting forth the 17.9 interest rates, prices, and terms under which the improvements 17.10 must be offered to the customers. The required programs must 17.11 cover a two-year period. Thecommissionerdirector shall 17.12 require at least one public utility to establish a pilot program 17.13 to make investments in and expenditures for energy from 17.14 renewable resources such as solar, wind, or biomass and shall 17.15 give special consideration and encouragement to programs that 17.16 bring about significant net savings through the use of 17.17 energy-efficient lighting. Thecommissionerdirector shall 17.18 evaluate the program on the basis of cost-effectiveness and the 17.19 reliability of technologies employed. The rules of 17.20 thedepartmentdivision must provide to the extent practicable 17.21 for a free choice, by consumers participating in the program, of 17.22 the device, method, or material constituting the energy 17.23 conservation improvement and for a free choice of the seller, 17.24 installer, or contractor of the energy conservation improvement, 17.25 provided that the device, method, material, seller, installer, 17.26 or contractor is duly licensed, certified, approved, or 17.27 qualified, including under the residential conservation services 17.28 program, where applicable. Thecommissionerdirector may 17.29 require a utility to make an energy conservation improvement 17.30 investment or expenditure whenever thecommissionerdirector 17.31 finds that the improvement will result in energy savings at a 17.32 total cost to the utility less than the cost to the utility to 17.33 produce or purchase an equivalent amount of new supply of 17.34 energy. Thecommissionerdirector shall nevertheless ensure 17.35 that every public utility operate one or more programs under 17.36 periodic review by the department. Load management may be used 18.1 to meet the requirements for energy conservation improvements 18.2 under this section if it results in a demonstrable reduction in 18.3 consumption of energy. Thecommissionerdirector shall consider 18.4 and may require a utility to undertake a program suggested by an 18.5 outside source, including a political subdivision or a nonprofit 18.6 or community organization. No utility may make an energy 18.7 conservation improvement under this section to a building 18.8 envelope unless: 18.9 (1) it is the primary supplier of energy used for either 18.10 space heating or cooling in the building; 18.11 (2) thecommissionerdirector determines that special 18.12 circumstances, which would unduly restrict the availability of 18.13 conservation programs, warrant otherwise; or 18.14 (3) the utility has been awarded a contract under 18.15 subdivision 2a. 18.16 Thecommissionerdirector shall ensure that a portion of 18.17 the money spent on residential conservation improvement programs 18.18 is devoted to programs that directly address the needs of 18.19 renters and low-income persons unless an insufficient number of 18.20 appropriate programs are available. 18.21 A utility, a political subdivision, or a nonprofit or 18.22 community organization that has suggested a program,the18.23attorney general acting on behalf of consumers and small18.24business interests,or a utility customer that has suggested a 18.25 programand is not represented by the attorney general under18.26section 8.33, may petition the commission to modify or revoke a 18.27departmentdivision decision under this section, and the 18.28 commission may do so if it determines that the program is not 18.29 cost-effective, does not adequately address the residential 18.30 conservation improvement needs of low-income persons, has a 18.31 long-range negative effect on one or more classes of customers, 18.32 or is otherwise not in the public interest. The person 18.33 petitioning for commission review has the burden of proof. The 18.34 commission shall reject a petition that, on its face, fails to 18.35 make a reasonable argument that a program is not in the public 18.36 interest. 19.1 Sec. 20. Minnesota Statutes 1994, section 216B.62, is 19.2 amended to read: 19.3 216B.62 [REGULATORY EXPENSES.] 19.4 Subd. 2. [ASSESSING SPECIFIC UTILITY.] Whenever the 19.5 attorney general or the commissionor department, in a 19.6 proceeding uponitsthe commission's own motion, on complaint, 19.7 or upon an application to it, shall deem it necessary, in order 19.8 to carry out the duties imposed under this chapter and section 19.9 216A.085, to investigate the books, accounts, practices, and 19.10 activities of, or make appraisals of the property of any public 19.11 utility, or to render any engineering or accounting services to 19.12 any public utility, or to intervene before an energy regulatory 19.13 agency, the public utility shall pay the expenses reasonably 19.14 attributable to the investigation, appraisal, service, or 19.15 intervention. The attorney general and commissionand19.16departmentshall ascertain the expenses, and the 19.17departmentattorney general or commission shall render a bill 19.18 therefor to the public utility, either at the conclusion of the 19.19 investigation, appraisal, or services, or from time to time 19.20 during its progress, which bill shall constitute notice of the 19.21 assessment and a demand for payment. The amount of the bills so 19.22 rendered by the department shall be paid by the public utility 19.23 into the state treasury within 30 days from the date of 19.24 rendition. The total amount, in any one calendar year, for 19.25 which any public utility shall become liable, by reason of costs 19.26 incurred by the attorney general or commission within that 19.27 calendar year, shall not exceed two-fifths of one percent of the 19.28 gross operating revenue from retail sales of gas, or electric 19.29 service by the public utility within the state in the last 19.30 preceding calendar year. Where, pursuant to this subdivision, 19.31 costs are incurred within any calendar year which are in excess 19.32 of two-fifths of one percent of the gross operating revenues, 19.33 the excess costs shall not be chargeable as part of the 19.34 remainder under subdivision 3, but shall be paid out of the 19.35 general appropriation to thedepartmentattorney general and 19.36 commission. In the case of public utilities offering more than 20.1 one public utility service only the gross operating revenues 20.2 from the public utility service in connection with which the 20.3 investigation is being conducted shall be considered when 20.4 determining this limitation. 20.5 Subd. 3. [ASSESSING ALL PUBLIC UTILITIES.](a)The 20.6departmentattorney general and commission shall quarterly, at 20.7 least 30 days before the start of each quarter, estimate the 20.8 total of their expenditures in the performance of their duties 20.9 relating to(1)public utilities under section 216A.085, 20.10 sections 216B.01 to 216B.67, other than amounts chargeable to 20.11 public utilities under subdivision 2 or 6, and alternative 20.12 energy engineering activity under section 216C.261. The 20.13 remainder, except the amount assessed against cooperatives and 20.14 municipalities for alternative energy engineering activity under 20.15 subdivision 5, shall be assessed by the attorney general and 20.16 commissionand departmentto the several public utilities in 20.17 proportion to their respective gross operating revenues from 20.18 retail sales of gas or electric service within the state during 20.19 the last calendar year. The assessment shall be paid into the 20.20 state treasury within 30 days after the bill has been mailed to 20.21 the several public utilities, which shall constitute notice of 20.22 the assessment and demand of payment thereof. The total amount 20.23 which may be assessed to the public utilities, under authority 20.24 of this subdivision, shall not exceed one-sixth of one percent 20.25 of the total gross operating revenues of the public utilities 20.26 during the calendar year from retail sales of gas or electric 20.27 service within the state. The assessment for the third quarter 20.28 of each fiscal year shall be adjusted to compensate for the 20.29 amount by which actual expenditures by the attorney general and 20.30 commissionand departmentfor the preceding fiscal year were 20.31 more or less than the estimated expenditures previously assessed. 20.32 Subd. 4. [OBJECTIONS.] Within 30 days after the date of 20.33 the mailing of any bill as provided by subdivisions 2 and 3, the 20.34 public utility against which the bill has been rendered may file 20.35 with the commission objections setting out the grounds upon 20.36 which it is claimed the bill is excessive, erroneous, unlawful 21.1 or invalid. The commission shall within 60 days hold a hearing 21.2 and issue an order in accordance with its findings. The order 21.3 shall be appealable in the same manner as other final orders of 21.4 the commission. 21.5 Subd. 5. [ASSESSING COOPERATIVES AND MUNICIPALS.] The 21.6 attorney general and commissionand departmentmay charge 21.7 cooperative electric associations and municipal electric 21.8 utilities their proportionate share of the expenses incurred in 21.9 the review and disposition of resource plans, adjudication of 21.10 service area disputes and the costs incurred in the adjudication 21.11 of complaints over service standards, practices, and rates. 21.12 Cooperative electric associations electing to become subject to 21.13 rate regulation by the commission pursuant to section 216B.026, 21.14 subdivision 4, are also subject to this section. Neither a 21.15 cooperative electric association nor a municipal electric 21.16 utility is liable for costs and expenses in a calendar year in 21.17 excess of the limitation on costs that may be assessed against 21.18 public utilities under subdivision 2. A cooperative electric 21.19 association or municipal electric utility may object to and 21.20 appeal bills of the commission and department as provided in 21.21 subdivision 4. 21.22 The department shall assess cooperatives and municipalities 21.23 for the costs of alternative energy engineering activities under 21.24 section 216C.261. Each cooperative and municipality shall be 21.25 assessed in proportion that its gross operating revenues for the 21.26 sale of gas and electric service within the state for the last 21.27 calendar year bears to the total of those revenues for all 21.28 public utilities, cooperatives, and municipalities. 21.29 Subd. 6. [ADMINISTRATIVE HEARING COSTS.] Any amounts 21.30 billed to the attorney general or commissionor the department21.31 by the office of administrative hearings for public utility 21.32 contested case hearings shall be assessed by the commissionor21.33the departmentor attorney general against the public utility. 21.34 The assessment shall be paid into the state treasury within 30 21.35 days after a bill, which constitutes notice of the assessment 21.36 and demand for payment of it, has been mailed to the public 22.1 utility. Money received shall be credited to a special account 22.2 and is appropriated to the attorney general or commissionor the22.3departmentfor payment to the office of administrative hearings. 22.4 Sec. 21. Minnesota Statutes 1994, section 216B.64, is 22.5 amended to read: 22.6 216B.64 [ATTORNEY GENERAL'S RESPONSIBILITIES.] 22.7 The attorney general of the state shall, upon request of 22.8 the commissionor department, represent and appear for the 22.9 commissionor departmentin all actions and proceedings 22.10 involving any question under Laws 1974, chapter 429, and shall 22.11 aid in any investigation or hearing had under the provisions of 22.12 Laws 1974, chapter 429. The attorney general shall perform all 22.13 duties and services in connection with Laws 1974, chapter 429 22.14 and the enforcement thereof as the commissionor departmentmay 22.15 require. The attorney general shall also bring all actions to 22.16 collect penalties herein provided. 22.17 Sec. 22. Minnesota Statutes 1994, section 216B.65, is 22.18 amended to read: 22.19 216B.65 [DEPARTMENTCOMMISSION TO EMPLOY NECESSARY STAFF.] 22.20 Thedepartmentcommission may employ experts, engineers, 22.21 statisticians, accountants, inspectors, clerks, hearing 22.22 examiners who may be attorneys and employees it deems necessary 22.23 to carry out the provisions of Laws 1974, chapter 429. 22.24 Sec. 23. Minnesota Statutes 1994, section 216C.01, 22.25 subdivision 2, is amended to read: 22.26 Subd. 2. [COMMISSIONERCOMMISSION.]"Commissioner" means22.27the commissioner of the department of public22.28service"Commission" means the public utilities commission. 22.29 Sec. 24. Minnesota Statutes 1994, section 216C.01, 22.30 subdivision 3, is amended to read: 22.31 Subd. 3. [DEPARTMENTDIRECTOR.]"Department" means the22.32department of public service"Director" means the director of 22.33 the division of energy in the public utilities commission. 22.34 Sec. 25. Minnesota Statutes 1994, section 216C.01, is 22.35 amended by adding a subdivision to read: 22.36 Subd. 3a. [EXECUTIVE DIRECTOR.] "Executive director" means 23.1 the executive director of the public utilities commission. 23.2 Sec. 26. [216C.011] [DIVISION OF ENERGY.] 23.3 A division of energy is established in the public utilities 23.4 commission under the control and supervision of a director, 23.5 appointed by the executive director and serving at the pleasure 23.6 of the executive director in the unclassified service. The 23.7 director shall employ in the division personnel in the 23.8 classified service necessary to carry out the duties under this 23.9 chapter. 23.10 Sec. 27. Minnesota Statutes 1994, section 216C.10, is 23.11 amended to read: 23.12 216C.10 [POWERS.] 23.13 Thecommissionerdirector may: 23.14 (1) adopt rules under chapter 14 as necessary to carry out 23.15 the purposes of sections 216C.05 to 216C.30 and, when necessary 23.16 for the purposes of section 216C.15, adopt emergency rules under 23.17 sections 14.29 to 14.36; 23.18 (2) make all contracts under sections 216C.05 to 216C.30 23.19 and do all things necessary to cooperate with the United States 23.20 government, and to qualify for, accept, and disburse any grant 23.21 intended for the administration of sections 216C.05 to 216C.30; 23.22 (3) provide on-site technical assistance to units of local 23.23 government in order to enhance local capabilities for dealing 23.24 with energy problems; 23.25 (4) administer for the state, energy programs under federal 23.26 law, regulations, or guidelines, except for the low-income home 23.27 energy assistance program and low-income weatherization programs 23.28 administered by the department of economic security, and 23.29 coordinate the programs and activities with other state 23.30 agencies, units of local government, and educational 23.31 institutions; 23.32 (5) develop a state energy investment plan with yearly 23.33 energy conservation and alternative energy development goals, 23.34 investment targets, and marketing strategies; 23.35 (6) perform market analysis studies relating to 23.36 conservation, alternative and renewable energy resources, and 24.1 energy recovery; 24.2 (7) assist with the preparation of proposals for innovative 24.3 conservation, renewable, alternative, or energy recovery 24.4 projects; 24.5 (8) manage and disburse funds made available for the 24.6 purpose of research studies or demonstration projects related to 24.7 energy conservation or other activities deemed appropriate by 24.8 the commissioner; 24.9 (9)interveneappear in certificate of need proceedings 24.10 before the public utilities commission; 24.11 (10) collect fees from recipients of loans, grants, or 24.12 other financial aid from money received from litigation or 24.13 settlement of alleged violations of federal petroleum pricing 24.14 regulations, which fees must be used to pay the department's 24.15 costs in administering those financial aids; and 24.16 (11) collect fees from proposers and operators of 24.17 conservation and other energy-related programs that are 24.18 reviewed, evaluated, or approved by the department, other than 24.19 proposers that are political subdivisions or community or 24.20 nonprofit organizations, to cover the department's cost in 24.21 making the reviewal, evaluation, or approval and in developing 24.22 additional programs for others to operate. 24.23 Notwithstanding any other law, the commissioner is 24.24 designated the state agent to apply for, receive, and accept 24.25 federal or other funds made available to the state for the 24.26 purposes of sections 216C.05 to 216C.30. 24.27 Sec. 28. Minnesota Statutes 1994, section 216C.37, 24.28 subdivision 1, is amended to read: 24.29 Subdivision 1. [DEFINITIONS.] In this section: 24.30 (a)"Commissioner""Authority" means thecommissioner of24.31public serviceMinnesota public facilities authority. 24.32 (b) "Energy conservation investments" means all capital 24.33 expenditures that are associated with conservation measures 24.34 identified in an energy project study, and that have a ten-year 24.35 or less payback period. 24.36 (c) "Municipality" means any county, statutory or home rule 25.1 charter city, town, school district, or any combination of those 25.2 units operating under an agreement to jointly undertake projects 25.3 authorized in this section. 25.4 (d) "Energy project study" means a study of one or more 25.5 energy-related capital improvement projects analyzed in 25.6 sufficient detail to support a financing application. At a 25.7 minimum, it must include one year of energy consumption and cost 25.8 data, a description of existing conditions, a description of 25.9 proposed conditions, a detailed description of the costs of the 25.10 project, and calculations sufficient to document the proposed 25.11 energy savings. 25.12 Sec. 29. Minnesota Statutes 1994, section 237.02, is 25.13 amended to read: 25.14 237.02 [GENERAL AUTHORITY OFDEPARTMENT ANDCOMMISSION; 25.15 DEFINITIONS.] 25.16 Thedepartment of public service and thepublic utilities 25.17 commission, now existing under the laws of this state,areis 25.18 hereby vested with the same jurisdiction and supervisory power 25.19 over telephone companies doing business in this state as it now 25.20 has over railroad and express companies and over public 25.21 utilities under chapter 216B. The definitions set forth 25.22 insectionsections 216A.02shalland 216B.02 apply also to this 25.23 chapter. 25.24 Sec. 30. Minnesota Statutes 1994, section 237.075, 25.25 subdivision 2, is amended to read: 25.26 Subd. 2. [SUSPENSION OF PROPOSED RATES; HEARING; FINAL 25.27 DETERMINATION DEFINED.] (a) Whenever there is filed with the 25.28 commission as provided in subdivision 1 a schedule modifying or 25.29 resulting in a change in any rate then in force, the commission 25.30 may suspend the operation of the schedule by filing with the 25.31 schedule of rates and delivering to the affected telephone 25.32 company a statement in writing of its reasons for the suspension 25.33 at any time before the rates become effective. The suspension 25.34 shall not be for a longer period than ten months beyond the 25.35 initial filing date except as provided in paragraph (b). During 25.36 the suspension the commission shall determine whether all 26.1 questions of the reasonableness of the rates requested raised by 26.2 persons deemed interested or by theadministrative division of26.3the department of public serviceutility consumers division of 26.4 the attorney general's office can be resolved to the 26.5 satisfaction of the commission. If the commission finds that 26.6 all significant issues raised have not been resolved to its 26.7 satisfaction, or upon petition by ten percent of the affected 26.8 customers or 250 affected customers, whichever is less, it shall 26.9 refer the matter to the office of administrative hearings with 26.10 instructions for a public hearing as a contested case pursuant 26.11 to chapter 14, except as otherwise provided in this section. 26.12 The commission may order that the issues presented by the 26.13 proposed rate changes be bifurcated into two separate hearings 26.14 as follows: (1) determination of the telephone company's 26.15 revenue requirements and (2) determination of the rate design. 26.16 Upon issuance of both administrative law judge reports, the 26.17 issues shall again be joined for consideration and final 26.18 determination by the commission. All prehearing discovery 26.19 activities of state agency intervenors shall be consolidated and 26.20 conducted by thedepartment of public serviceutility consumers 26.21 division. If the commission does not make a final determination 26.22 concerning a schedule of rates within ten months after the 26.23 initial filing date, the schedule shall be deemed to have been 26.24 approved by the commission; except if a settlement has been 26.25 submitted to and rejected by the commission, the schedule is 26.26 deemed to have been approved 12 months after the initial filing. 26.27 (b) If the commission finds that it has insufficient time 26.28 during the suspension period to make a final determination of a 26.29 case involving changes in general rates because of the need to 26.30 make final determinations of other previously filed cases 26.31 involving changes in general rates under this section or section 26.32 216B.16, the commission may extend the suspension period to the 26.33 extent necessary to allow itself 20 working days to make the 26.34 final determination after it has made final determinations in 26.35 the previously filed cases. An extension of the suspension 26.36 period under this paragraph does not alter the setting of 27.1 interim rates under subdivision 3. 27.2 (c) For the purposes of this section, "final determination" 27.3 means the initial decision of the commission and not any order 27.4 which may be entered by the commission in response to a petition 27.5 for rehearing or other further relief. The commission may 27.6 further suspend rates until it determines all those petitions. 27.7 Sec. 31. Minnesota Statutes 1994, section 237.295, is 27.8 amended to read: 27.9 237.295 [ASSESSMENT OF REGULATORY EXPENSES.] 27.10 Subdivision 1. [PAYMENT FOR INVESTIGATIONS.] Whenever 27.11 thedepartmentattorney general or commission, in a proceeding 27.12 upon its own motion, on complaint, or upon an application to it, 27.13 considers it necessary, in order to carry out the duties imposed 27.14 on it, to investigate the books, accounts, practices, and 27.15 activities of, or make appraisals of the property of, a 27.16 telephone company, or to render engineering or accounting 27.17 services to a telephone company, the telephone company shall pay 27.18 the expenses reasonably attributable to the investigation, 27.19 appraisal, or service. Thedepartmentattorney general and 27.20 commission shall ascertain the expenses, and the 27.21departmentattorney general shall render a bill for those 27.22 expenses to the telephone company, either at the conclusion of 27.23 the investigation, appraisal, or services, or from time to time 27.24 during its progress. The bill constitutes notice of the 27.25 assessment and a demand for payment. The amount of the bills 27.26 assessed by the department under this subdivision must be paid 27.27 by the telephone company into the state treasury within 30 days 27.28 from the date of assessment. The total amount, in a calendar 27.29 year, for which a telephone company may become liable, by reason 27.30 of costs incurred by thedepartmentattorney general and 27.31 commission within that calendar year, may not exceed two-fifths 27.32 of one percent of the gross jurisdictional operating revenue of 27.33 the telephone company in the last preceding calendar year. 27.34 Direct charges may be assessed without regard to this limitation 27.35 until the gross jurisdictional operating revenue of the 27.36 telephone company for the preceding calendar year has been 28.1 reported for the first time. Where, under this subdivision, 28.2 costs are incurred within a calendar year that are in excess of 28.3 two-fifths of one percent of the gross jurisdictional operating 28.4 revenues, the excess costs are not chargeable as part of the 28.5 remainder under subdivision 2, but must be paid out of the 28.6 general appropriation of thedepartmentattorney general or 28.7 commission. 28.8 Subd. 2. [ASSESSMENT OF COSTS.] Thedepartmentattorney 28.9 general and commission shall quarterly, at least 30 days before 28.10 the start of each quarter, estimate the total of their 28.11 expenditures in the performance of their duties relating to 28.12 telephone companies, other than amounts chargeable to telephone 28.13 companies under subdivision 1, 5, or 6. The remainder must be 28.14 assessed by the department to the telephone companies operating 28.15 in this state in proportion to their respective gross 28.16 jurisdictional operating revenues during the last calendar 28.17 year. The assessment must be paid into the state treasury 28.18 within 30 days after the bill has been mailed to the telephone 28.19 companies. The bill constitutes notice of the assessment and 28.20 demand of payment. The total amount that may be assessed to the 28.21 telephone companies under this subdivision may not exceed 28.22 one-eighth of one percent of the total gross jurisdictional 28.23 operating revenues during the calendar year. The assessment for 28.24 the third quarter of each fiscal year must be adjusted to 28.25 compensate for the amount by which actual expenditures by 28.26 the attorney general and commissionand departmentfor the 28.27 preceding fiscal year were more or less than the estimated 28.28 expenditures previously assessed. A telephone company with 28.29 gross jurisdictional operating revenues of less than $5,000 is 28.30 exempt from assessments under this subdivision. 28.31 Subd. 3. [OBJECTIONS.] Within 30 days after the date of 28.32 the mailing of any bill as provided by subdivisions 1 and 2, the 28.33 telephone company against which the bill has been assessed may 28.34 file with the commission objections setting out the grounds upon 28.35 which it is claimed the bill is excessive, erroneous, unlawful 28.36 or invalid. The commission shall within 60 days provide for a 29.1 contested case hearing and issue an order in accordance with its 29.2 findings. The order shall be appealable in the same manner as 29.3 other final orders of the commission. 29.4 Subd. 4. [INTEREST IMPOSED.] The amounts assessed against 29.5 any telephone company not paid after 30 days after the mailing 29.6 of a notice advising the telephone company of the amount 29.7 assessed against it, shall draw interest at the rate of six 29.8 percent per annum, and upon failure to pay the assessment the 29.9 attorney general shall proceed by action in the name of the 29.10 state against the telephone company to collect the amount due, 29.11 together with interest and the cost of the suit. 29.12 Subd. 5. [ADMINISTRATIVE HEARING COSTS; APPROPRIATION.] 29.13 Any amounts billed to the commissionor the departmentby the 29.14 office of administrative hearings for telephone contested case 29.15 hearings shall be assessed by the commissioneror the department29.16 against the telephone company. The assessment shall be paid 29.17 into the state treasury within 30 days after a bill, which 29.18 constitutes notice of the assessment and demand for payment of 29.19 it, has been mailed to the telephone company. Money received 29.20 shall be credited to a special account and is appropriated to 29.21 thecommissioner or the departmentdirector for payment to the 29.22 office of administrative hearings. 29.23 Subd. 6. [EXTENDED AREA SERVICE BALLOTING ACCOUNT; 29.24 APPROPRIATION.] The extended area service balloting account is 29.25 created as a separate account in the special revenue fund in the 29.26 state treasury. The commission shall render separate bills to 29.27 telephone companies only for direct balloting costs incurred by 29.28 the commission under section 237.161. The bill constitutes 29.29 notice of the assessment and demand of payment. The amount of a 29.30 bill assessed by the commission under this subdivision must be 29.31 paid by the telephone company into the state treasury within 30 29.32 days from the date of assessment. Money received under this 29.33 subdivision must be credited to the extended area service 29.34 balloting account and is appropriated to the commission. 29.35 Sec. 32. Minnesota Statutes 1994, section 237.30, is 29.36 amended to read: 30.1 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 30.2 The sum of $25,000 is hereby appropriated out of any moneys 30.3 in the state treasury not otherwise appropriated, to establish 30.4 and provide a revolving fund to be known as the Minnesota 30.5 Telephone Investigation Fund for the use of thedepartment of30.6public service and of theattorney general in investigations, 30.7 valuations, and revaluations under section 237.295. All sums 30.8 paid by the telephone companies to reimburse thedepartment of30.9public serviceattorney general foritsthe attorney general's 30.10 expenses pursuant to section 237.295 shall be credited to the 30.11 revolving fund and shall be deposited in a separate bank account 30.12 and not commingled with any other state funds or moneys, but any 30.13 balance in excess of $25,000 in the revolving fund at the end of 30.14 each fiscal year shall be paid into the state treasury and 30.15 credited to the general fund. The sum of $25,000 herein 30.16 appropriated and all subsequent credits to said revolving fund 30.17 shall be paid upon the warrant of the commissioner of finance 30.18 upon application of thedepartment or of theattorney general to 30.19 an aggregate amount of not more than one-half of such sums to 30.20 each of them, which proportion shall be constantly maintained in 30.21 all credits and withdrawals from the revolving fund. 30.22 Sec. 33. Minnesota Statutes 1994, section 239.01, is 30.23 amended to read: 30.24 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 30.25 The weights and measures division, referred to in this 30.26 chapter as the division, is created under the jurisdiction of 30.27 the department ofpublic serviceagriculture. The division has 30.28 supervision and control over all weights, weighing devices, and 30.29 measures in the state. 30.30 Sec. 34. Minnesota Statutes 1994, section 239.05, 30.31 subdivision 6c, is amended to read: 30.32 Subd. 6c. [COMMISSIONER.] "Commissioner" means the 30.33 commissioner of the department ofpublic serviceagriculture. 30.34 Sec. 35. Minnesota Statutes 1994, section 239.05, 30.35 subdivision 7a, is amended to read: 30.36 Subd. 7a. [DEPARTMENT.] "Department" means the department 31.1 ofpublic serviceagriculture. 31.2 Sec. 36. Minnesota Statutes 1994, section 239.05, 31.3 subdivision 8, is amended to read: 31.4 Subd. 8. [DIRECTOR.] "Director" means the director of the 31.5 division of weights and measures of the department ofpublic31.6serviceagriculture. 31.7 Sec. 37. [INSTRUCTION TO REVISOR.] 31.8 (a) The revisor of statutes, in the next and subsequent 31.9 editions of Minnesota Statutes and Minnesota Rules, shall make 31.10 the changes in paragraphs (b) to (j), and shall also make any 31.11 stylistic and conforming changes necessary to incorporate the 31.12 following changes: 31.13 (b) Change the terms "commissioner" and "commissioner of 31.14 public service," or similar terms, to "director," or similar 31.15 term, and the term "department," or similar term, to 31.16 "commission," or similar term, in Minnesota Statutes, section 31.17 137.14. 31.18 (c) Change the terms "commissioner" and "commissioner of 31.19 public service" to "authority" in Minnesota Statutes, section 31.20 216C.37. 31.21 (d) Change the terms "commissioner" or "commissioner of 31.22 public service," or similar terms, to "director of the division 31.23 of energy in the public utilities commission," or similar term, 31.24 in Minnesota Statutes, sections 13.68, subdivision 1; 13.99, 31.25 subdivision 65; 16B.165; 16B.56, subdivision 1; 17.86; 18.024, 31.26 subdivision 1; 103F.325, subdivisions 2 and 3; 115A.15, 31.27 subdivision 5; 116D.11, subdivision 4; 174.03, subdivision 7; 31.28 216B.162, subdivision 9; 216B.241; 216C.02; 216C.07; 216C.08; 31.29 216C.09; 216C.11; 216C.12; 216C.13; 216C.14; 216C.15; 216C.16; 31.30 216C.17; 216C.18; 216C.19; 216C.195; 216C.20; 216C.21; 216C.22; 31.31 216C.23; 216C.24; 216C.25; 216C.26; 216C.261; 216C.262; 216C.27; 31.32 216C.29; 216C.30; 216C.31; 216C.315; 216C.32; 216C.33; 216C.35; 31.33 216C.373; 216C.38; 216C.381; 446A.03, subdivision 1; and 31.34 446A.21, subdivision 2. 31.35 (e) Change the terms "department" and "department of public 31.36 service" to "commission" and "public utilities commission" in 32.1 Minnesota Statutes, sections 13.692; 116O.06, subdivision 2; 32.2 161.45; 469.164, subdivision 2; and 484.50. 32.3 (f) Change the terms "department" and "department of public 32.4 service" to "division of energy in the public utilities 32.5 commission" in Minnesota Statutes, sections 16B.32, subdivision 32.6 2; 160.262, subdivision 3; 161.45; and 326.243. 32.7 (g) Change the term "department of public service" to 32.8 "department of agriculture" in Minnesota Statutes, sections 32.9 17A.04, subdivisions 6, 7, and 8; 17A.10, subdivision 1; 41A.09, 32.10 subdivision 7; 93.38; 137.14; 325E.11; 325E.115, subdivision 2; 32.11 and 325F.733, subdivision 7. 32.12 (h) Change the term "department of public service" to 32.13 "department of transportation" in Minnesota Statutes, sections 32.14 168.61, subdivision 1; 169.073; and 181.30. 32.15 (i) Delete references to "commissioner," "commissioner of 32.16 public service," and "department of public service" in Minnesota 32.17 Statutes, sections 15.06, subdivision 1; 15A.081, subdivision 1; 32.18 43A.08, subdivision 1a; 237.59, subdivision 2; and 237.70, 32.19 subdivision 7. 32.20 (j) Change the title of Minnesota Statutes, chapter 216A to 32.21 "PUBLIC UTILITIES COMMISSION; ADMINISTRATION." 32.22 Sec. 38. [REPEALER.] 32.23 Minnesota Statutes 1994, sections 216A.06; 216B.02, 32.24 subdivision 8; and 237.69, subdivision 3, are repealed. 32.25 Sec. 39. [EFFECTIVE DATE.] 32.26 This article is effective January 1, 1996.