1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; codifying reorganization 1.3 order No. 181; transferring the remaining duties of 1.4 the commissioner of public service to the commissioner 1.5 of commerce; transferring the administration and 1.6 enforcement of the Unfair Cigarette Sales Act from the 1.7 commissioner of revenue to the commissioner of 1.8 commerce; appropriating money; amending Minnesota 1.9 Statutes 2000, sections 3C.12, subdivision 2; 13.679; 1.10 15.01; 15.06, subdivision 1; 15A.0815, subdivision 2; 1.11 16B.32, subdivision 2; 16B.335, subdivision 4; 16B.56, 1.12 subdivision 1; 16B.76, subdivision 1; 17.86, 1.13 subdivision 3; 18.024, subdivision 1; 43A.08, 1.14 subdivision 1a; 45.011, subdivision 1; 45.012; 1.15 103F.325, subdivisions 2 and 3; 115A.15, subdivision 1.16 5; 116O.06, subdivision 2; 123B.65, subdivisions 1, 3, 1.17 and 5; 161.45, subdivision 1; 168.61, subdivision 1; 1.18 169.073; 174.03, subdivision 7; 181.30; 216A.01; 1.19 216A.035; 216A.036; 216A.05, subdivision 1; 216A.07, 1.20 subdivision 1; 216A.08; 216A.085, subdivision 3; 1.21 216B.02, subdivisions 1, 7, and 8; 216B.16, 1.22 subdivisions 1, 2, 6b, and 15; 216B.162, subdivisions 1.23 7 and 11; 216B.1675, subdivision 9; 216B.241, 1.24 subdivisions 1a, 1b, and 2b; 216C.01, subdivisions 1, 1.25 2, and 3; 216C.051, subdivision 6; 216C.37, 1.26 subdivision 1; 216C.40, subdivision 4; 237.02; 1.27 237.075, subdivisions 2 and 9; 237.082; 237.21; 1.28 237.30; 237.462, subdivision 6; 237.51, subdivisions 1.29 1, 5, and 5a; 237.52, subdivisions 2, 4, and 5; 1.30 237.54, subdivision 2; 237.55; 237.59, subdivision 2; 1.31 237.768; 239.01; 270.06; 297F.04, subdivision 1; 1.32 297F.13, subdivision 4; 325D.33, subdivision 8, and by 1.33 adding a subdivision; 325D.405; 325D.415; 325E.11; 1.34 325E.115, subdivision 2; 326.243; and 484.50; 1.35 repealing Minnesota Statutes 2000, sections 216A.06; 1.36 237.69, subdivision 3; and 325D.33, subdivision 5. 1.37 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.38 ARTICLE 1 1.39 Section 1. [CONSOLIDATION OF STATE REGULATION OF 1.40 COMMERCE.] 1.41 In order to make state government more efficient and 2.1 effective and to accomplish more efficient and effective 2.2 regulation of commerce in Minnesota, all of the powers, rights, 2.3 responsibilities, and duties that remain in the department of 2.4 public service after reorganization order No. 181 are 2.5 transferred to the department of commerce under Minnesota 2.6 Statutes, section 15.039. This transfer is governed in all 2.7 respects by Minnesota Statutes, section 15.039. The department 2.8 of public service is abolished. 2.9 Sec. 2. Minnesota Statutes 2000, section 3C.12, 2.10 subdivision 2, is amended to read: 2.11 Subd. 2. [FREE DISTRIBUTION.] The revisor shall distribute 2.12 without charge copies of each edition of Minnesota Statutes, 2.13 supplements to Minnesota Statutes, and Laws of Minnesota to the 2.14 persons or bodies listed in this subdivision. Before 2.15 distributing the copies, the revisor shall inform these persons 2.16 or bodies of the cost of the publication and the availability of 2.17 statutes and session laws on the Internet, and shall ask whether 2.18 their work requires the full number of copies authorized by this 2.19 subdivision. Unless a smaller number is needed, the revisor 2.20 shall distribute: 2.21 (a) 30 copies to the supreme court; 2.22 (b) 30 copies to the court of appeals; 2.23 (c) one copy to each judge of a district court; 2.24 (d) one copy to the court administrator of each district 2.25 court for use in each courtroom of the district court; 2.26 (e) one copy to each judge, district attorney, clerk of 2.27 court of the United States, and deputy clerk of each division of 2.28 the United States district court in Minnesota; 2.29 (f) 100 copies to the office of the attorney general; 2.30 (g) ten copies each to the governor's office, the 2.31 departments of agriculture,commerce,corrections, children, 2.32 families, and learning, finance, health, transportation, labor 2.33 and industry, economic security, natural resources, public 2.34 safety,public service,human services, revenue, and the 2.35 pollution control agency; 2.36 (h) two copies each to the lieutenant governor and the 3.1 state treasurer; 3.2 (i) 20 copies each to thedepartmentdepartments of 3.3 administration and commerce, state auditor, and legislative 3.4 auditor; 3.5 (j) one copy each to other state departments, agencies, 3.6 boards, and commissions not specifically named in this 3.7 subdivision; 3.8 (k) one copy to each member of the legislature; 3.9 (l) 150 copies for the use of the senate and 200 copies for 3.10 the use of the house of representatives; 3.11 (m) 50 copies to the revisor of statutes from which the 3.12 revisor shall send the appropriate number to the Library of 3.13 Congress for copyright and depository purposes; 3.14 (n) four copies to the secretary of the senate; 3.15 (o) four copies to the chief clerk of the house of 3.16 representatives; 3.17 (p) 100 copies to the state law library; 3.18 (q) 100 copies to the law school of the University of 3.19 Minnesota; 3.20 (r) five copies each to the Minnesota historical society 3.21 and the secretary of state; 3.22 (s) one copy each to the public library of the largest 3.23 municipality of each county if the library is not otherwise 3.24 eligible to receive a free copy under this section or section 3.25 15.18; and 3.26 (t) one copy to each county library maintained pursuant to 3.27 chapter 134, except in counties containing cities of the first 3.28 class. If a county has not established a county library 3.29 pursuant to chapter 134, the copy shall be provided to any 3.30 public library in the county. 3.31 Sec. 3. Minnesota Statutes 2000, section 13.679, is 3.32 amended to read: 3.33 13.679 [DEPARTMENT OF PUBLIC SERVICE DATA.] 3.34 Subdivision 1. [TENANT.] Data collected by thedepartment3.35of public servicecommissioner of commerce that reveals the 3.36 identity of a tenant who makes a complaint regarding energy 4.1 efficiency standards for rental housing are private data on 4.2 individuals. 4.3 Subd. 2. [UTILITY OR TELEPHONE COMPANY EMPLOYEE OR 4.4 CUSTOMER.] (a) The following are private data on individuals: 4.5 data collected by thedepartment of public servicecommissioner 4.6 of commerce or the public utilities commission, including the 4.7 names or any other data that would reveal the identity of either 4.8 an employee or customer of a telephone company or public utility 4.9 who files a complaint or provides information regarding a 4.10 violation or suspected violation by the telephone company or 4.11 public utility of any federal or state law or rule; except this 4.12 data may be released as needed to law enforcement authorities. 4.13 (b) The following are private data on individuals: data 4.14 collected by the commission or thedepartment of public service4.15 commissioner of commerce on individual public utility or 4.16 telephone company customers or prospective customers, including 4.17 copies of tax forms, needed to administer federal or state 4.18 programs that provide relief from telephone company bills, 4.19 public utility bills, or cold weather disconnection. The 4.20 determination of eligibility of the customers or prospective 4.21 customers may be released to public utilities or telephone 4.22 companies to administer the programs. 4.23 Sec. 4. Minnesota Statutes 2000, section 15.01, is amended 4.24 to read: 4.25 15.01 [DEPARTMENTS OF THE STATE.] 4.26 The following agencies are designated as the departments of 4.27 the state government: the department of administration; the 4.28 department of agriculture; the department of commerce; the 4.29 department of corrections; the department of children, families, 4.30 and learning; the department of economic security; the 4.31 department of trade and economic development; the department of 4.32 finance; the department of health; the department of human 4.33 rights; the department of labor and industry; the department of 4.34 military affairs; the department of natural resources; the 4.35 department of employee relations; the department of public 4.36 safety;the department of public service;the department of 5.1 human services; the department of revenue; the department of 5.2 transportation; the department of veterans affairs; and their 5.3 successor departments. 5.4 Sec. 5. Minnesota Statutes 2000, section 15.06, 5.5 subdivision 1, is amended to read: 5.6 Subdivision 1. [APPLICABILITY.] This section applies to 5.7 the following departments or agencies: the departments of 5.8 administration, agriculture, commerce, corrections, economic 5.9 security, children, families, and learning, employee relations, 5.10 trade and economic development, finance, health, human rights, 5.11 labor and industry, natural resources, public safety,public5.12service,human services, revenue, transportation, and veterans 5.13 affairs; the housing finance and pollution control agencies; the 5.14 office of commissioner of iron range resources and 5.15 rehabilitation; the bureau of mediation services; and their 5.16 successor departments and agencies. The heads of the foregoing 5.17 departments or agencies are "commissioners." 5.18 Sec. 6. Minnesota Statutes 2000, section 15A.0815, 5.19 subdivision 2, is amended to read: 5.20 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 5.21 positions in this subdivision may not exceed 95 percent of the 5.22 salary of the governor: 5.23 Commissioner of administration; 5.24 Commissioner of agriculture; 5.25 Commissioner of children, families, and learning; 5.26 Commissioner of commerce; 5.27 Commissioner of corrections; 5.28 Commissioner of economic security; 5.29 Commissioner of employee relations; 5.30 Commissioner of finance; 5.31 Commissioner of health; 5.32 Executive director, higher education services office; 5.33 Commissioner, housing finance agency; 5.34 Commissioner of human rights; 5.35 Commissioner of human services; 5.36 Executive director, state board of investment; 6.1 Commissioner of labor and industry; 6.2 Commissioner of natural resources; 6.3 Director of office of strategic and long-range planning; 6.4 Commissioner, pollution control agency; 6.5 Commissioner of public safety; 6.6Commissioner, department of public service;6.7 Commissioner of revenue; 6.8 Commissioner of trade and economic development; 6.9 Commissioner of transportation; and 6.10 Commissioner of veterans affairs. 6.11 Sec. 7. Minnesota Statutes 2000, section 16B.32, 6.12 subdivision 2, is amended to read: 6.13 Subd. 2. [ENERGY CONSERVATION GOALS; EFFICIENCY PROGRAM.] 6.14 (a) The commissioner of administration in consultation with 6.15 thedepartment of public servicecommissioner of commerce, in 6.16 cooperation with one or more public utilities or comprehensive 6.17 energy services providers, may conduct a shared-savings program 6.18 involving energy conservation expenditures on state-owned 6.19 buildings. The public utility or energy services provider shall 6.20 contract with appropriate state agencies to implement energy 6.21 efficiency improvements in the selected buildings. A contract 6.22 must require the public utility or energy services provider to 6.23 include all energy efficiency improvements in selected buildings 6.24 that are calculated to achieve a cost payback within ten years. 6.25 The contract must require that the public utility or energy 6.26 services provider be repaid solely from energy cost savings and 6.27 only to the extent of energy cost savings. Repayments must be 6.28 interest-free. The goal of the program in this paragraph is to 6.29 demonstrate that through effective energy conservation the total 6.30 energy consumption per square foot of state-owned and wholly 6.31 state-leased buildings could be reduced by at least 25 percent 6.32 from consumption in the base year of 1990. All agencies 6.33 participating in the program must report to the commissioner of 6.34 administration their monthly energy usage, building schedules, 6.35 inventory of energy-consuming equipment, and other information 6.36 as needed by the commissioner to manage and evaluate the program. 7.1 (b) The commissioner may exclude from the program of 7.2 paragraph (a) a building in which energy conservation measures 7.3 are carried out. "Energy conservation measures" means measures 7.4 that are applied to a state building that improve energy 7.5 efficiency and have a simple return of investment in ten years 7.6 or within the remaining period of a lease, whichever time is 7.7 shorter, and involves energy conservation, conservation 7.8 facilities, renewable energy sources, improvements in operations 7.9 and maintenance efficiencies, or retrofit activities. 7.10 (c) This subdivision expires January 1, 2001. 7.11 Sec. 8. Minnesota Statutes 2000, section 16B.335, 7.12 subdivision 4, is amended to read: 7.13 Subd. 4. [ENERGY CONSERVATION.] A recipient to whom a 7.14 direct appropriation is made for a capital improvement project 7.15 shall ensure that the project complies with the applicable 7.16 energy conservation standards contained in law, including 7.17 sections 216C.19 to 216C.20, and rules adopted thereunder. The 7.18 recipient mayuse the energy planning and intervention and7.19energy technologies units of the department of public service to7.20 obtain information and technical assistance from the state 7.21 energy office in the department of commerce on energy 7.22 conservation and alternative energy development relating to the 7.23 planning and construction of the capital improvement project. 7.24 Sec. 9. Minnesota Statutes 2000, section 16B.56, 7.25 subdivision 1, is amended to read: 7.26 Subdivision 1. [EMPLOYEE TRANSPORTATION PROGRAM.] (a) 7.27 [ESTABLISHMENT.] To conserve energy and alleviate traffic 7.28 congestion around state offices, the commissioner shall, in 7.29 cooperation withthe commissioner of public service,the 7.30 commissioner of transportation, the state energy office in the 7.31 department of commerce, and interested nonprofit agencies, 7.32 establish and operate an employee transportation program using 7.33 commuter vans with a capacity of not less than seven nor more 7.34 than 16 passengers. Commuter vans may be used by state 7.35 employees and others to travel between their homes and their 7.36 work locations. However, only state employee drivers may use 8.1 the van for personal purposes after working hours, not including 8.2 partisan political activity. The commissioner shall acquire or 8.3 lease commuter vans, or otherwise contract for the provision of 8.4 commuter vans, and shall make the vans available for the use of 8.5 state employees and others in accordance with standards and 8.6 procedures adopted by the commissioner. The commissioner shall 8.7 promote the maximum participation of state employees and others 8.8 in the use of the vans. 8.9 (b) [ADMINISTRATIVE POLICIES.] The commissioner shall adopt 8.10 standards and procedures under this section without regard to 8.11 chapter 14. The commissioner shall provide for the recovery by 8.12 the state of vehicle acquisition, lease, operation, and 8.13 insurance costs through efficient and convenient assignment of 8.14 vans, and for the billing of costs and collection of fees. A 8.15 state employee using a van for personal use shall pay, pursuant 8.16 to the standards and procedures adopted by the commissioner, for 8.17 operating and routine maintenance costs incurred as a result of 8.18 the personal use. Fees collected under this subdivision shall 8.19 be deposited in the accounts from which the costs of operating, 8.20 maintaining, and leasing or amortization for the specific 8.21 vehicle are paid. 8.22 Sec. 10. Minnesota Statutes 2000, section 16B.76, 8.23 subdivision 1, is amended to read: 8.24 Subdivision 1. [MEMBERSHIP.] (a) The construction codes 8.25 advisory council consists of the following members: 8.26 (1) the commissioner of administration or the 8.27 commissioner's designee representing the department's building 8.28 codes and standards division; 8.29 (2) the commissioner of health or the commissioner's 8.30 designee representing an environmental health section of the 8.31 department; 8.32 (3) the commissioner of public safety or the commissioner's 8.33 designee representing the department's state fire marshal 8.34 division; 8.35 (4) the commissioner ofpublic servicecommerce or the 8.36 commissioner's designee representing the department'senergy9.1regulation and resource management divisionstate energy office; 9.2 and 9.3 (5) one member representing each of the following 9.4 occupations or entities, appointed by the commissioner of 9.5 administration: 9.6 (i) a certified building official; 9.7 (ii) a fire service representative; 9.8 (iii) a licensed architect; 9.9 (iv) a licensed engineer; 9.10 (v) a building owners and managers representative; 9.11 (vi) a licensed residential building contractor; 9.12 (vii) a commercial building contractor; 9.13 (viii) a heating and ventilation contractor; 9.14 (ix) a plumbing contractor; 9.15 (x) a representative of a construction and building trades 9.16 union; and 9.17 (xi) a local unit of government representative. 9.18 (b) For members who are not state officials or employees, 9.19 terms, compensation, removal, and the filling of vacancies are 9.20 governed by section 15.059. The council shall select one of its 9.21 members to serve as chair. 9.22 (c) The council expires June 30, 2001. 9.23 Sec. 11. Minnesota Statutes 2000, section 17.86, 9.24 subdivision 3, is amended to read: 9.25 Subd. 3. [INFORMATION.] The University of Minnesota 9.26 extension service, in cooperation with the commissioners of 9.27 agriculture, children, families, and learning, natural 9.28 resources, andpublic servicecommerce, shall serve as the 9.29 principal agency for publishing and circulating information 9.30 derived from research under subdivision 2 among the various 9.31 municipalities and individual property owners in the state. 9.32 Where practical, the extension service and the state energy 9.33 office in the department ofpublic servicecommerce shall secure 9.34 the advice and assistance of various energy utilities interested 9.35 and concerned with conservation. The commissioner of 9.36 agriculture shall establish an information source for requests 10.1 for nursery stock, to match needs of municipalities with stocks 10.2 of trees available for planting from private and governmental 10.3 sources. 10.4 Sec. 12. Minnesota Statutes 2000, section 18.024, 10.5 subdivision 1, is amended to read: 10.6 Subdivision 1. [WOOD UTILIZATION.] The departments of 10.7 agriculture and natural resources, after consultation with the 10.8 Minnesota shade tree advisory committee and thecommissioner of10.9public servicestate energy office in the department of 10.10 commerce, shall investigate, evaluate, and make recommendations 10.11 to the legislature concerning the potential uses of wood from 10.12 community trees removed due to disease or other disorders. 10.13 These recommendations shall include maximum resource recovery 10.14 through recycling, use as an alternative energy source, or use 10.15 in construction or the manufacture of new products. Wood 10.16 utilization or disposal systems as defined in section 18.023 10.17 must be included to ensure maximum utilization of diseased shade 10.18 trees with designs and procedures to ensure public safety and to 10.19 assure compliance with approved disease control programs. 10.20 Sec. 13. Minnesota Statutes 2000, section 43A.08, 10.21 subdivision 1a, is amended to read: 10.22 Subd. 1a. [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 10.23 authorities for the following agencies may designate additional 10.24 unclassified positions according to this subdivision: the 10.25 departments of administration; agriculture; commerce; 10.26 corrections; economic security; children, families, and 10.27 learning; employee relations; trade and economic development; 10.28 finance; health; human rights; labor and industry; natural 10.29 resources; public safety;public service;human services; 10.30 revenue; transportation; and veterans affairs; the housing 10.31 finance and pollution control agencies; the state lottery; the 10.32 state board of investment; the office of administrative 10.33 hearings; the office of environmental assistance; the offices of 10.34 the attorney general, secretary of state, state auditor, and 10.35 state treasurer; the Minnesota state colleges and universities; 10.36 the higher education services office; the Perpich center for 11.1 arts education; and the Minnesota zoological board. 11.2 A position designated by an appointing authority according 11.3 to this subdivision must meet the following standards and 11.4 criteria: 11.5 (1) the designation of the position would not be contrary 11.6 to other law relating specifically to that agency; 11.7 (2) the person occupying the position would report directly 11.8 to the agency head or deputy agency head and would be designated 11.9 as part of the agency head's management team; 11.10 (3) the duties of the position would involve significant 11.11 discretion and substantial involvement in the development, 11.12 interpretation, and implementation of agency policy; 11.13 (4) the duties of the position would not require primarily 11.14 personnel, accounting, or other technical expertise where 11.15 continuity in the position would be important; 11.16 (5) there would be a need for the person occupying the 11.17 position to be accountable to, loyal to, and compatible with, 11.18 the governor and the agency head, the employing statutory board 11.19 or commission, or the employing constitutional officer; 11.20 (6) the position would be at the level of division or 11.21 bureau director or assistant to the agency head; and 11.22 (7) the commissioner has approved the designation as being 11.23 consistent with the standards and criteria in this subdivision. 11.24 Sec. 14. Minnesota Statutes 2000, section 45.012, is 11.25 amended to read: 11.26 45.012 [COMMISSIONER.] 11.27 (a) The department of commerce is under the supervision and 11.28 control of the commissioner of commerce. The commissioner is 11.29 appointed by the governor in the manner provided by section 11.30 15.06. 11.31 (b) Data that is received by the commissioner or the 11.32 commissioner's designee by virtue of membership or participation 11.33 in an association, group, or organization that is not otherwise 11.34 subject to chapter 13 is confidential or protected nonpublic 11.35 data but may be shared with the department employees as the 11.36 commissioner considers appropriate. The commissioner may 12.1 release the data to any person, agency, or the public if the 12.2 commissioner determines that the access will aid the law 12.3 enforcement process, promote public health or safety, or dispel 12.4 widespread rumor or unrest. 12.5 (c) It is part of the department's mission that within the 12.6 department's resources the commissioner shall endeavor to: 12.7 (1) prevent the waste or unnecessary spending of public 12.8 money; 12.9 (2) use innovative fiscal and human resource practices to 12.10 manage the state's resources and operate the department as 12.11 efficiently as possible; 12.12 (3) coordinate the department's activities wherever 12.13 appropriate with the activities of other governmental agencies; 12.14 (4) use technology where appropriate to increase agency 12.15 productivity, improve customer service, increase public access 12.16 to information about government, and increase public 12.17 participation in the business of government; 12.18 (5) utilize constructive and cooperative labor-management 12.19 practices to the extent otherwise required by chapters 43A and 12.20 179A; 12.21 (6) report to the legislature on the performance of agency 12.22 operations and the accomplishment of agency goals in the 12.23 agency's biennial budget according to section 16A.10, 12.24 subdivision 1; and 12.25 (7) recommend to the legislature appropriate changes in law 12.26 necessary to carry out the mission and improve the performance 12.27 of the department. 12.28 (d) The commissioner also has all the powers and 12.29 responsibilities and shall perform all the duties previously 12.30 assigned to the commissioner of public service and the 12.31 department of public service under chapters 216, 216A, 216B, 12.32 216C, 237, 238, 239, and other statutes prior to the date of 12.33 final enactment of this act, except in the case where those 12.34 powers, responsibilities, or duties have been specifically 12.35 otherwise assigned by law. 12.36 Sec. 15. Minnesota Statutes 2000, section 103F.325, 13.1 subdivision 2, is amended to read: 13.2 Subd. 2. [REVIEW AND HEARING.] (a) The commissioner shall 13.3 make the proposed management plan available to affected local 13.4 governmental bodies, shoreland owners, conservation and outdoor 13.5 recreation groups, the commissioner of trade and economic 13.6 development, the commissioner ofpublic servicecommerce, the 13.7 governor, and the general public. The commissioners of trade 13.8 and economic developmentand of public service, the state energy 13.9 office in the department of commerce, and the governor shall 13.10 review the proposed management plan in accordance with the 13.11 criteria in section 86A.09, subdivision 3, and submit any 13.12 written comments to the commissioner within 60 days after 13.13 receipt of the proposed management plan. 13.14 (b) By 60 days after making the information available, the 13.15 commissioner shall conduct a public hearing on the proposed 13.16 management plan in the county seat of each county that contains 13.17 a portion of the designated system area, in the manner provided 13.18 in chapter 14. 13.19 Sec. 16. Minnesota Statutes 2000, section 103F.325, 13.20 subdivision 3, is amended to read: 13.21 Subd. 3. [POST HEARING REVIEW.] Upon receipt of the 13.22 administrative law judge's report, the commissioner shall 13.23 immediately forward the proposed management plan and the 13.24 administrative law judge's report to the commissioners of trade 13.25 and economic development and ofpublic servicecommerce for 13.26 review under section 86A.09, subdivision 3, except that the 13.27 review by the commissioners must be completed or be deemed 13.28 completed within 30 days after receiving the administrative law 13.29 judge's report, and the review by the governor must be completed 13.30 or be deemed completed within 15 days after receipt. 13.31 Sec. 17. Minnesota Statutes 2000, section 115A.15, 13.32 subdivision 5, is amended to read: 13.33 Subd. 5. [REPORTS.] (a) By January 1 of each odd-numbered 13.34 year, the commissioner of administration shall submit a report 13.35 to the governor and to the environment and natural resources 13.36 committees of the senate and house of representatives, the 14.1 finance division of the senate committee on environment and 14.2 natural resources, and the house of representatives committee on 14.3 environment and natural resources finance summarizing past 14.4 activities and proposed goals of the program for the following 14.5 biennium. The report shall include at least: 14.6 (1) a summary list of product and commodity purchases that 14.7 contain recycled materials; 14.8 (2) the results of any performance tests conducted on 14.9 recycled products and agencies' experience with recycled 14.10 products used; 14.11 (3) a list of all organizations participating in and using 14.12 the cooperative purchasing program; and 14.13 (4) a list of products and commodities purchased for their 14.14 recyclability and of recycled products reviewed for purchase. 14.15 (b) By July 1 of each even-numbered year, the director of 14.16 the office of environmental assistance and the commissioner of 14.17public servicecommerce through the state energy office shall 14.18 submit recommendations to the commissioner regarding the 14.19 operation of the program. 14.20 Sec. 18. Minnesota Statutes 2000, section 116O.06, 14.21 subdivision 2, is amended to read: 14.22 Subd. 2. [EQUITY INVESTMENTS.] The corporation may acquire 14.23 an interest in a product or a private business entity, except 14.24 that the corporation may not acquire an interest in a business 14.25 entity engaged in a trade or industry whose profits are directly 14.26 regulated by the commissioner of commerce or thedepartment of14.27public servicepublic utilities commission. The corporation may 14.28 enter into joint venture agreements with other private 14.29 corporations to promote economic development and job creation. 14.30 Sec. 19. Minnesota Statutes 2000, section 123B.65, 14.31 subdivision 1, is amended to read: 14.32 Subdivision 1. [DEFINITIONS.] The definitions in this 14.33 subdivision apply to this section. 14.34 (a) "Energy conservation measure" means a training program 14.35 or facility alteration designed to reduce energy consumption or 14.36 operating costs and includes: 15.1 (1) insulation of the building structure and systems within 15.2 the building; 15.3 (2) storm windows and doors, caulking or weatherstripping, 15.4 multiglazed windows and doors, heat absorbing or heat reflective 15.5 glazed and coated window and door systems, additional glazing, 15.6 reductions in glass area, and other window and door system 15.7 modifications that reduce energy consumption; 15.8 (3) automatic energy control systems; 15.9 (4) heating, ventilating, or air conditioning system 15.10 modifications or replacements; 15.11 (5) replacement or modifications of lighting fixtures to 15.12 increase the energy efficiency of the lighting system without 15.13 increasing the overall illumination of a facility, unless such 15.14 increase in illumination is necessary to conform to the 15.15 applicable state or local building code for the lighting system 15.16 after the proposed modifications are made; 15.17 (6) energy recovery systems; 15.18 (7) cogeneration systems that produce steam or forms of 15.19 energy such as heat, as well as electricity, for use primarily 15.20 within a building or complex of buildings; 15.21 (8) energy conservation measures that provide long-term 15.22 operating cost reductions. 15.23 (b) "Guaranteed energy savings contract" means a contract 15.24 for the evaluation and recommendations of energy conservation 15.25 measures, and for one or more energy conservation measures. The 15.26 contract must provide that all payments, except obligations on 15.27 termination of the contract before its expiration, are to be 15.28 made over time, but not to exceed 15 years from the date of 15.29 final installation, and the savings are guaranteed to the extent 15.30 necessary to make payments for the systems. 15.31 (c) "Qualified provider" means a person or business 15.32 experienced in the design, implementation, and installation of 15.33 energy conservation measures. A qualified provider to whom the 15.34 contract is awarded shall give a sufficient bond to the school 15.35 district for its faithful performance. 15.36 (d) "Commissioner" means the commissioner ofpublic service16.1 commerce through the state energy office. 16.2 Sec. 20. Minnesota Statutes 2000, section 123B.65, 16.3 subdivision 3, is amended to read: 16.4 Subd. 3. [EVALUATION BY COMMISSIONER.] Upon request of the 16.5 board, the commissionerof public serviceshall review the 16.6 report required in subdivision 2 and provide an evaluation to 16.7 the board on the proposed contract within 15 working days of 16.8 receiving the report. In evaluating the proposed contract, the 16.9 commissioner shall determine whether the detailed calculations 16.10 of the costs and of the energy and operating savings are 16.11 accurate and reasonable. The commissioner may request 16.12 additional information about a proposed contract as the 16.13 commissioner deems necessary. If the commissioner requests 16.14 additional information, the commissioner shall not be required 16.15 to submit an evaluation to the board within fewer than ten 16.16 working days of receiving the requested information. 16.17 Sec. 21. Minnesota Statutes 2000, section 123B.65, 16.18 subdivision 5, is amended to read: 16.19 Subd. 5. [PAYMENT OF REVIEW EXPENSES.] The commissionerof16.20public servicemay charge a district requesting services under 16.21 subdivisions 3 and 4 actual costs incurred by the department 16.22 ofpublic servicecommerce while conducting the review, or 16.23 one-half percent of the total identified project cost, whichever 16.24 is less. Before conducting the review, the commissioner shall 16.25 notify a district requesting review services that expenses will 16.26 be charged to the district. The commissioner shall bill the 16.27 district upon completion of the contract review. Money 16.28 collected by the commissioner under this subdivision must be 16.29 deposited in the general fund. A district may include the cost 16.30 of a review by the commissioner under subdivision 3 in a 16.31 contract made pursuant to this section. 16.32 Sec. 22. Minnesota Statutes 2000, section 161.45, 16.33 subdivision 1, is amended to read: 16.34 Subdivision 1. [RULES.] Electric transmission, telephone 16.35 or telegraph lines, pole lines, community antenna television 16.36 lines, railways, ditches, sewers, water, heat or gas mains, gas 17.1 and other pipe lines, flumes, or other structures which, under 17.2 the laws of this state or the ordinance of any city, may be 17.3 constructed, placed, or maintained across or along any trunk 17.4 highway, or the roadway thereof, by any person, persons, 17.5 corporation, or any subdivision of the state, may be so 17.6 maintained or hereafter constructed only in accordance with such 17.7 rules as may be prescribed by the commissioner who shall have 17.8 power to prescribe and enforce reasonable rules with reference 17.9 to the placing and maintaining along, across, or in any such 17.10 trunk highway of any of the utilities hereinbefore set forth. 17.11 Nothing herein shall restrict the actions of public authorities 17.12 in extraordinary emergencies nor restrict the power and 17.13 authority of thedepartment of public servicecommissioner of 17.14 commerce as provided for in other provisions of law. Provided, 17.15 however, that in the event any local subdivision of government 17.16 has enacted ordinances relating to the method of installation or 17.17 requiring underground installation of such community antenna 17.18 television lines, the permit granted by the commissioner of 17.19 transportation shall require compliance with such local 17.20 ordinance. 17.21 Sec. 23. Minnesota Statutes 2000, section 168.61, 17.22 subdivision 1, is amended to read: 17.23 Subdivision 1. [DEFINITION.] The term "intercity bus" as 17.24 used in sections 168.61 to 168.65 means a motor bus as defined 17.25 in section 168.011, subdivision 9, which is owned or operated by 17.26 either a resident or nonresident of Minnesota in interstate 17.27 commerce under authority of the Interstate Commerce Commission 17.28 or in combined interstate and intrastate commerce under 17.29 authority of the Interstate Commerce Commission and the 17.30 department ofpublic servicetransportation of Minnesota, as a 17.31 result of which operation such bus operates both within and 17.32 without the territorial limits of the state of Minnesota. 17.33 Sec. 24. Minnesota Statutes 2000, section 169.073, is 17.34 amended to read: 17.35 169.073 [PROHIBITED LIGHT OR SIGNAL.] 17.36 (a) No person or corporation shall place, maintain or 18.1 display any red light or red sign, signal, or lighting device or 18.2 maintain it in view of any highway or any line of railroad on or 18.3 over which trains are operated in such a way as to interfere 18.4 with the effectiveness or efficiency of any highway 18.5 traffic-control device or signals or devices used in the 18.6 operation of a railroad. Upon written notice from the 18.7 commissioner of transportation, a person or corporation 18.8 maintaining or owning or displaying a prohibited light shall 18.9 promptly remove it, or change the color of it to some other 18.10 color than red. Where a prohibited light or sign interferes 18.11 with the effectiveness or efficiency of the signals or devices 18.12 used in the operation of a railroad, the department ofpublic18.13servicetransportation may cause the removal of it and the 18.14 department may issue notices and orders for its removal. The 18.15 department shall proceed as provided in sections 216.13, 216.14, 18.16 216.15, 216.16, and 216.17, with a right of appeal to the 18.17 aggrieved party in accordance with chapter 14. 18.18 (b) No person or corporation shall maintain or display any 18.19 light after written notice from the commissioner of 18.20 transportation or the department of public service that the 18.21 light constitutes a traffic hazard and that it has ordered the 18.22 removal thereof. 18.23 Sec. 25. Minnesota Statutes 2000, section 174.03, 18.24 subdivision 7, is amended to read: 18.25 Subd. 7. [ENERGY CONSERVATION.] The commissioner, in 18.26 cooperation with the commissioner ofpublic servicecommerce 18.27 through the state energy office, shall evaluate all modes of 18.28 transportation in terms of their levels of energy consumption. 18.29 The commissioner ofpublic servicecommerce shall provide the 18.30 commissioner with projections of the future availability of 18.31 energy resources for transportation. The commissioner shall use 18.32 the results of this evaluation and the projections to evaluate 18.33 alternative programs and facilities to be included in the 18.34 statewide plan and to otherwise promote the more efficient use 18.35 of energy resources for transportation purposes. 18.36 Sec. 26. Minnesota Statutes 2000, section 181.30, is 19.1 amended to read: 19.2 181.30 [DUTY OF DEPARTMENT OF PUBLIC SERVICE.] 19.3 Any officer of any railroad company in the state violating 19.4 any of the provisions of section 181.29 shall be guilty of a 19.5 misdemeanor; and, upon conviction, punished by a fine of not 19.6 less than $100, and not more than $700, for each offense, or by 19.7 imprisonment in the county jail not more than 60 days, or both 19.8 fine and imprisonment, at the discretion of the court. It shall 19.9 be the duty of the state department ofpublic19.10servicetransportation, upon complaint properly filed with it 19.11 alleging a violation of section 181.29, to make a full 19.12 investigation in relation thereto, and for such purpose it shall 19.13 have the power to administer oaths, interrogate witnesses, take 19.14 testimony and require the production of books and papers, and if 19.15 such report shall show a violation of the provisions of section 19.16 181.29, the department ofpublic servicetransportation shall, 19.17 through the attorney general, begin the prosecution of all 19.18 parties against whom evidence of such violation is found; but 19.19 section 181.29 shall not be construed to prevent any other 19.20 person from beginning prosecution for the violation of the 19.21 provisions thereof. 19.22 Sec. 27. Minnesota Statutes 2000, section 216A.01, is 19.23 amended to read: 19.24 216A.01 [ESTABLISHMENT OFDEPARTMENT AND COMMISSION; POWERS 19.25 AND DUTIES.] 19.26There are hereby created and established the department of19.27public service, and the public utilities commission.The 19.28 department ofpublic servicecommerce shall have and possess all 19.29 of the rights and powers and perform all of the duties vested in 19.30 it by this chapter. The public utilities commission shall have 19.31 and possess all of the rights and powers and perform all of the 19.32 duties vested in it by this chapter, and those formerly vested 19.33 by law in the railroad and warehouse commission. 19.34 Sec. 28. Minnesota Statutes 2000, section 216A.035, is 19.35 amended to read: 19.36 216A.035 [CONFLICT OF INTEREST.] 20.1 (a) No person, while a member of the public utilities 20.2 commission, while acting as executive secretary of the 20.3 commission, or while employed in a professional capacity by the 20.4 commission, shall receive any income, other than dividends or 20.5 other earnings from a mutual fund or trust if these earnings do 20.6 not constitute a significant portion of the person's income, 20.7 directly or indirectly from any public utility or other 20.8 organization subject to regulation by the commission. 20.9 (b) No person is eligible to be appointed as a member of 20.10 the commission if the person has been employed with an entity, 20.11 or an affiliated company of an entity, that is subject to rate 20.12 regulation by the commission within one year from the date when 20.13 the person's term on the commission will begin. 20.14 (c) No person who is an employee of thepublic service20.15 department of commerce shall participate in any manner in any 20.16 decision or action of the commission where that person has a 20.17 direct or indirect financial interest. Each commissioner or 20.18 employee of thepublic servicedepartment who is in the general 20.19 professional, supervisory, or technical units established in 20.20 section 179A.10 or who is a professional, supervisory, or 20.21 technical employee defined as confidential in section 179A.03, 20.22 subdivision 4, or who is a management classification employee 20.23 and whose duties are related to publicutilities or20.24transportationutility, telephone company, or telecommunications 20.25 company regulation shall report to the campaign finance and 20.26 public disclosure board annually before April 15 any interest in 20.27 an industry or business regulated by the commission. Each 20.28 commissioner shall file a statement of economic interest as 20.29 required by section 10A.09 with the campaign finance and public 20.30 disclosure board and the public utilities commission before 20.31 taking office. The statement of economic interest must state 20.32 any interest that the commissioner has in an industry or 20.33 business regulated by the commission. 20.34 (d) A professional employee of the commission or department 20.35 must immediately disclose to the commission or to the 20.36 commissioner of the department, respectively, any communication, 21.1 direct or indirect, with a person who is a party to a pending 21.2 proceeding before the commission regarding future benefits, 21.3 compensation, or employment to be received from that person. 21.4 Sec. 29. Minnesota Statutes 2000, section 216A.036, is 21.5 amended to read: 21.6 216A.036 [EMPLOYMENT RESTRICTIONS.] 21.7 (a) A person who serves as (1) a commissioner of the public 21.8 utilities commission, (2) commissioner ofthe department of21.9public servicecommerce, or (3) deputy commissioner ofthe21.10departmentcommerce, shall not, while employed with or within 21.11 one year after leaving the commission, or department, accept 21.12 employment with, receive compensation directly or indirectly 21.13 from, or enter into a contractual relationship with an entity, 21.14 or an affiliated company of an entity, that is subject to rate 21.15 regulation by the commission. 21.16 (b) An entity or an affiliated company of an entity that is 21.17 subject to rate regulation by the commission, or a person acting 21.18 on behalf of the entity, shall not negotiate or offer to employ 21.19 or compensate a commissioner of the public utilities commission, 21.20 the commissioner ofpublic servicecommerce, or the deputy 21.21 commissioner of commerce, while the person is so employed or 21.22 within one year after the person leaves that employment. 21.23 (c) For the purposes of this section, "affiliated company" 21.24 means a company that controls, is controlled by, or is under 21.25 common control with an entity subject to rate regulation by the 21.26 commission. 21.27 (d) A person who violates this section is subject to a 21.28 civil penalty not to exceed $10,000 for each violation. The 21.29 attorney general may bring an action in district court to 21.30 collect the penalties provided in this section. 21.31 Sec. 30. Minnesota Statutes 2000, section 216A.05, 21.32 subdivision 1, is amended to read: 21.33 Subdivision 1. [LEGISLATIVE AND QUASI-JUDICIAL FUNCTIONS.] 21.34 The functions of the commission shall be legislative and 21.35 quasi-judicial in nature. It may make such investigations and 21.36 determinations, hold such hearings, prescribe such rules and 22.1 issue such orders with respect to the control and conduct of the 22.2 businesses coming within its jurisdiction as the legislature 22.3 itself might make but only as it shall from time to time 22.4 authorize. It may adjudicate all proceedings brought before it 22.5 in which the violation of any law or rule administered by the 22.6 department of commerce is alleged. 22.7 Sec. 31. Minnesota Statutes 2000, section 216A.07, 22.8 subdivision 1, is amended to read: 22.9 Subdivision 1. [ADMINISTRATIVECOMMISSIONER DUTIES.] The 22.10 commissionershall be the executive and administrative head of22.11the public service department and shall have and possessof 22.12 commerce has all the rights and powers and shall perform all the 22.13 dutiesrelating to the administrative function of the department22.14asset forth in this chapter. The commissioner may: 22.15 (1) prepare all forms or blanks for the purpose of 22.16 obtaining information which the commissioner may deem necessary 22.17 or useful in the proper exercise of the authority and duties of 22.18 the commissioner in connection with regulated businesses; 22.19 (2) prescribe the time and manner within which forms or 22.20 blanks shall be filed with the department; 22.21 (3) inspect at all reasonable times, and copy the books, 22.22 records, memoranda and correspondence or other documents and 22.23 records of any person relating to any regulated business; and 22.24 (4) cause the deposition to be taken of any person 22.25 concerning the business and affairs of any business regulated by 22.26 the department. Information sought through said deposition 22.27 shall be for a lawfully authorized purpose and shall be relevant 22.28 and material to the investigation or hearing before the 22.29 commission. Information obtained from said deposition shall be 22.30 used by the department only for a lawfully authorized purpose 22.31 and pursuant to powers and responsibilities conferred upon the 22.32 department. Said deposition is to be taken in the manner 22.33 prescribed by law for taking depositions in civil actions in the 22.34 district court. 22.35 Sec. 32. Minnesota Statutes 2000, section 216A.08, is 22.36 amended to read: 23.1 216A.08 [CONTINUATION OF RULES OF PUBLIC SERVICE 23.2 DEPARTMENT.] 23.3 All valid rules, orders, and directives heretofore 23.4 enforced, issued, or promulgated by the public service 23.5 department under authority of chapter 216, 216A, 216B, 216C, 23.6 218, 219, 221,or222, 237, 238, or 239 shall remain and 23.7 continue in force and effect until repealed, modified, or 23.8 superseded by duly authorized rules, orders, or directives of 23.9 the public utilities commissionor, the commissioner of 23.10 transportation, or the commissioner of commerce. 23.11 Sec. 33. Minnesota Statutes 2000, section 216A.085, 23.12 subdivision 3, is amended to read: 23.13 Subd. 3. [STAFFING.] The intervention office shall be 23.14 under the control and supervision of the commissioner ofthe23.15department of public servicecommerce. The commissioner may 23.16 hire staff or contract for outside services as needed to carry 23.17 out the purposes of this section. The attorney general shall 23.18 act as counsel in all intervention proceedings. 23.19 Sec. 34. Minnesota Statutes 2000, section 216B.02, 23.20 subdivision 1, is amended to read: 23.21 Subdivision 1. [SCOPE.] For the purposes ofLaws 1974,23.22chapter 429this chapter the terms defined in this section have 23.23 the meanings given them. 23.24 Sec. 35. Minnesota Statutes 2000, section 216B.02, 23.25 subdivision 7, is amended to read: 23.26 Subd. 7. [COMMISSION.] "Commission" means the public 23.27 utilities commissionof the department of public service. 23.28 Sec. 36. Minnesota Statutes 2000, section 216B.02, 23.29 subdivision 8, is amended to read: 23.30 Subd. 8. [DEPARTMENT.] "Department" means the department 23.31 ofpublic servicecommerce of the state of Minnesota. 23.32 Sec. 37. Minnesota Statutes 2000, section 216B.16, 23.33 subdivision 1, is amended to read: 23.34 Subdivision 1. [NOTICE.] Unless the commission otherwise 23.35 orders, no public utility shall change a rate which has been 23.36 duly established under this chapter, except upon 60 days' notice 24.1 to the commission. The notice shall include statements of 24.2 facts, expert opinions, substantiating documents, and exhibits, 24.3 supporting the change requested, and state the change proposed 24.4 to be made in the rates then in force and the time when the 24.5 modified rates will go into effect. If the filing utility does 24.6 not have an approved conservation improvement plan on file with 24.7 the departmentof public service, it shall also include in its 24.8 notice an energy conservation plan pursuant to section 24.9 216B.241. The filing utility shall give written notice, as 24.10 approved by the commission, of the proposed change to the 24.11 governing body of each municipality and county in the area 24.12 affected. All proposed changes shall be shown by filing new 24.13 schedules or shall be plainly indicated upon schedules on file 24.14 and in force at the time. 24.15 Sec. 38. Minnesota Statutes 2000, section 216B.16, 24.16 subdivision 2, is amended to read: 24.17 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 24.18 DETERMINATION DEFINED.] (a) Whenever there is filed with the 24.19 commission a schedule modifying or resulting in a change in any 24.20 rates then in force as provided in subdivision 1, the commission 24.21 may suspend the operation of the schedule by filing with the 24.22 schedule of rates and delivering to the affected utility a 24.23 statement in writing of its reasons for the suspension at any 24.24 time before the rates become effective. The suspension shall 24.25 not be for a longer period than ten months beyond the initial 24.26 filing date except as provided in this subdivision or 24.27 subdivision 1a. 24.28 (b) During the suspension the commission shall determine 24.29 whether all questions of the reasonableness of the rates 24.30 requested raised by persons deemed interested or by the 24.31administrative division of thedepartmentof public servicecan 24.32 be resolved to the satisfaction of the commission. If the 24.33 commission finds that all significant issues raised have not 24.34 been resolved to its satisfaction, or upon petition by ten 24.35 percent of the affected customers or 250 affected customers, 24.36 whichever is less, it shall refer the matter to the office of 25.1 administrative hearings with instructions for a public hearing 25.2 as a contested case pursuant to chapter 14, except as otherwise 25.3 provided in this section. 25.4 (c) The commission may order that the issues presented by 25.5 the proposed rate changes be bifurcated into two separate 25.6 hearings as follows: (1) determination of the utility's revenue 25.7 requirements and (2) determination of the rate design. Upon 25.8 issuance of both administrative law judge reports, the issues 25.9 shall again be joined for consideration and final determination 25.10 by the commission. 25.11 (d) All prehearing discovery activities of state agency 25.12 intervenors shall be consolidated and conducted by the 25.13 department ofpublic servicecommerce. 25.14 (e) If the commission does not make a final determination 25.15 concerning a schedule of rates within ten months after the 25.16 initial filing date, the schedule shall be deemed to have been 25.17 approved by the commission; except if: 25.18 (1) an extension of the procedural schedule has been 25.19 granted under subdivision 1a, in which case the schedule of 25.20 rates is deemed to have been approved by the commission on the 25.21 last day of the extended period of suspension; or 25.22 (2) a settlement has been submitted to and rejected by the 25.23 commission and the commission does not make a final 25.24 determination concerning the schedule of rates, the schedule of 25.25 rates is deemed to have been approved 60 days after the initial 25.26 or, if applicable, the extended period of suspension. 25.27 (f) If the commission finds that it has insufficient time 25.28 during the suspension period to make a final determination of a 25.29 case involving changes in general rates because of the need to 25.30 make a final determination of another previously filed case 25.31 involving changes in general rates under this section or section 25.32 237.075, the commission may extend the suspension period to the 25.33 extent necessary to allow itself 20 working days to make the 25.34 final determination after it has made a final determination in 25.35 the previously filed case. An extension of the suspension 25.36 period under this paragraph does not alter the setting of 26.1 interim rates under subdivision 3. 26.2 (g) For the purposes of this section, "final determination" 26.3 means the initial decision of the commission and not any order 26.4 which may be entered by the commission in response to a petition 26.5 for rehearing or other further relief. The commission may 26.6 further suspend rates until it determines all those petitions. 26.7 Sec. 39. Minnesota Statutes 2000, section 216B.16, 26.8 subdivision 6b, is amended to read: 26.9 Subd. 6b. [ENERGY CONSERVATION IMPROVEMENT.] (a) Except as 26.10 otherwise provided in this subdivision, all investments and 26.11 expenses of a public utility as defined in section 216B.241, 26.12 subdivision 1, paragraph (e), incurred in connection with energy 26.13 conservation improvements shall be recognized and included by 26.14 the commission in the determination of just and reasonable rates 26.15 as if the investments and expenses were directly made or 26.16 incurred by the utility in furnishing utility service. 26.17 (b) After December 31, 1999, investments and expenses for 26.18 energy conservation improvements shall not be included by the 26.19 commission in the determination of just and reasonable electric 26.20 and gas rates for retail electric and gas service provided to 26.21 large electric customer facilities that have been exempted by 26.22 the commissioner of the departmentof public servicepursuant to 26.23 section 216B.241, subdivision 1a, paragraph (b). However, no 26.24 public utility shall be prevented from recovering its investment 26.25 in energy conservation improvements from all customers that were 26.26 made on or before December 31, 1999, in compliance with the 26.27 requirements of section 216B.241. 26.28 (c) The commission may permit a public utility to file rate 26.29 schedules providing for annual recovery of the costs of energy 26.30 conservation improvements. These rate schedules may be 26.31 applicable to less than all the customers in a class of retail 26.32 customers if necessary to reflect the differing minimum spending 26.33 requirements of section 216B.241, subdivision 1a. After 26.34 December 31, 1999, the commission shall allow a public utility, 26.35 without requiring a general rate filing under this section, to 26.36 reduce the electric and gas rates applicable to large electric 27.1 customer facilities that have been exempted by the commissioner 27.2 of the departmentof public servicepursuant to section 27.3 216B.241, subdivision 1a, paragraph (b), by an amount that 27.4 reflects the elimination of energy conservation improvement 27.5 investments or expenditures for those facilities required on or 27.6 before December 31, 1999. In the event that the commission has 27.7 set electric or gas rates based on the use of an accounting 27.8 methodology that results in the cost of conservation 27.9 improvements being recovered from utility customers over a 27.10 period of years, the rate reduction may occur in a series of 27.11 steps to coincide with the recovery of balances due to the 27.12 utility for conservation improvements made by the utility on or 27.13 before December 31, 1999. 27.14 Sec. 40. Minnesota Statutes 2000, section 216B.16, 27.15 subdivision 15, is amended to read: 27.16 Subd. 15. [LOW-INCOME RATE PROGRAMS; REPORT.] (a) The 27.17 commission may consider ability to pay as a factor in setting 27.18 utility rates and may establish programs for low-income 27.19 residential ratepayers in order to ensure affordable, reliable, 27.20 and continuous service to low-income utility customers. The 27.21 commission shall order a pilot program for at least one 27.22 utility. In ordering pilot programs, the commission shall 27.23 consider the following: 27.24 (1) the potential for low-income programs to provide 27.25 savings to the utility for all collection costs including but 27.26 not limited to: costs of disconnecting and reconnecting 27.27 residential ratepayers' service, all activities related to the 27.28 utilities' attempt to collect past due bills, utility working 27.29 capital costs, and any other administrative costs related to 27.30 inability to pay programs and initiatives; 27.31 (2) the potential for leveraging federal low-income energy 27.32 dollars to the state; and 27.33 (3) the impact of energy costs as a percentage of the total 27.34 income of a low-income residential customer. 27.35 (b) In determining the structure of the pilot utility 27.36 program, the commission shall: 28.1 (1) consult with advocates for and representatives of 28.2 low-income utility customers, administrators of energy 28.3 assistance and conservation programs, and utility 28.4 representatives; 28.5 (2) coordinate eligibility for the program with the state 28.6 and federal energy assistance program and low-income residential 28.7 energy programs, including weatherization programs; and 28.8 (3) evaluate comprehensive low-income programs offered by 28.9 utilities in other states. 28.10 (c) The commission shall implement at least one pilot 28.11 project by January 1, 1995, and shall allow a utility required 28.12 to implement a pilot project to recover the net costs of the 28.13 project in the utility's rates. 28.14(d) The commission, in conjunction with the commissioner of28.15the department of public service and the commissioner of28.16economic security, shall review low-income rate programs and28.17shall report to the legislature by January 1, 1998. The report28.18must include:28.19(1) the increase in federal energy assistance money28.20leveraged by the state as a result of this program;28.21(2) the effect of the program on low-income customer's28.22ability to pay energy costs;28.23(3) the effect of the program on utility customer bad debt28.24and arrearages;28.25(4) the effect of the program on the costs and numbers of28.26utility disconnections and reconnections and other costs28.27incurred by the utility in association with inability to pay28.28programs;28.29(5) the ability of the utility to recover the costs of the28.30low-income program without a general rate change;28.31(6) how other ratepayers have been affected by this28.32program;28.33(7) recommendations for continuing, eliminating, or28.34expanding the low-income pilot program; and28.35(8) how general revenue funds may be utilized in28.36conjunction with low-income programs.29.1 Sec. 41. Minnesota Statutes 2000, section 216B.162, 29.2 subdivision 7, is amended to read: 29.3 Subd. 7. [COMMISSION DETERMINATION.] (a) Except as 29.4 provided under subdivision 6, competitive rates offered by 29.5 electric utilities under this section must be filed with the 29.6 commission and must be approved, modified, or rejected by the 29.7 commission within 90 days. The utility's filing must include 29.8 statements of fact demonstrating that the proposed rates meet 29.9 the standards of this subdivision. The filing must be served on 29.10 the departmentof public serviceand the office of the attorney 29.11 general at the same time as it is served on the commission. 29.12 (b) In reviewing a specific rate proposal, the commission 29.13 shall determine: 29.14 (1) that the rate meets the terms and conditions in 29.15 subdivision 4, unless the commission determines that waiver of 29.16 one or more terms and conditions would be in the public 29.17 interest; 29.18 (2) that the consumer can obtain its energy requirements 29.19 from an energy supplier not rate-regulated by the commission 29.20 under section 216B.16; 29.21 (3) that the customer is not likely to take service from 29.22 the electric utility seeking to offer the competitive rate if 29.23 the customer was charged the electric utility's standard 29.24 tariffed rate; and 29.25 (4) that after consideration of environmental and 29.26 socioeconomic impacts it is in the best interest of all other 29.27 customers to offer the competitive rate to the customer subject 29.28 to effective competition. 29.29 (c) If the commission approves the competitive rate, it 29.30 becomes effective as agreed to by the electric utility and the 29.31 customer. If the competitive rate is modified by the 29.32 commission, the commission shall issue an order modifying the 29.33 competitive rate subject to the approval of the electric utility 29.34 and the customer. Each party has ten days in which to reject 29.35 the proposed modification. If no party rejects the proposed 29.36 modification, the commissioner's order becomes final. If either 30.1 party rejects the commission's proposed modification, the 30.2 electric utility, on its behalf or on the behalf of the 30.3 customer, may submit to the commission a modified version of the 30.4 commission's proposal. The commission shall accept or reject 30.5 the modified version within 30 days. If the commission rejects 30.6 the competitive rate, it shall issue an order indicating the 30.7 reasons for the rejection. 30.8 Sec. 42. Minnesota Statutes 2000, section 216B.162, 30.9 subdivision 11, is amended to read: 30.10 Subd. 11. [COMMISSION DETERMINATION.] (a) Proposals for 30.11 discretionary rate reductions offered by utilities must be filed 30.12 with the commission, with copies of the filing served upon the 30.13 departmentof public serviceand the office of attorney general 30.14 at the same time it is served upon the commission. The 30.15 commission shall review the proposals according to procedures 30.16 developed under section 216B.05, subdivision 2a. The commission 30.17 shall not approve discretionary rate reductions offered by 30.18 public utilities that do not have an accepted resource plan on 30.19 file with the commission. The commission shall not approve 30.20 discretionary rate reductions unless the utility has made the 30.21 customer aware of all cost-effective opportunities for energy 30.22 efficiency improvements offered by the utility. 30.23 (b) Public utilities that provide service under 30.24 discretionary rate reductions shall not, through increased 30.25 revenue requirements or through prospective rate design changes, 30.26 recover any revenues foregone due to the discretionary rate 30.27 reductions, nor shall the commission grant such recovery. 30.28 Sec. 43. Minnesota Statutes 2000, section 216B.1675, 30.29 subdivision 9, is amended to read: 30.30 Subd. 9. [COMMISSION FINDINGS.] The commission shall issue 30.31 findings concerning the appropriateness of the proposed plan. 30.32 The commission may approve, reject, or modify the plan in a 30.33 manner which meets the requirements of this section. An 30.34 approved or modified plan becomes effective unless the plan is 30.35 withdrawn by the utility within 30 days of a final appealable 30.36 order. If the utility withdraws an approved or modified plan, 31.1 all of the administrative costs related to the plan that are 31.2 charged by the commission or the departmentof public serviceto 31.3 the utility may not be recovered from ratepayers in current or 31.4 subsequent rates. A utility that withdraws an approved or 31.5 modified plan may not file another plan under this section for a 31.6 period of one year following the withdrawal of the plan. 31.7 Sec. 44. Minnesota Statutes 2000, section 216B.241, 31.8 subdivision 1a, is amended to read: 31.9 Subd. 1a. [INVESTMENT, EXPENDITURE, AND CONTRIBUTION; 31.10 PUBLIC UTILITY.] (a) For purposes of this subdivision and 31.11 subdivision 2, "public utility" has the meaning given it in 31.12 section 216B.02, subdivision 4. Each public utility shall spend 31.13 and invest for energy conservation improvements under this 31.14 subdivision and subdivision 2 the following amounts: 31.15 (1) for a utility that furnishes gas service, 0.5 percent 31.16 of its gross operating revenues from service provided in the 31.17 state; 31.18 (2) for a utility that furnishes electric service, 1.5 31.19 percent of its gross operating revenues from service provided in 31.20 the state; and 31.21 (3) for a utility that furnishes electric service and that 31.22 operates a nuclear-powered electric generating plant within the 31.23 state, two percent of its gross operating revenues from service 31.24 provided in the state. 31.25 For purposes of this paragraph (a), "gross operating 31.26 revenues" do not include revenues from large electric customer 31.27 facilities exempted by the commissioner of the departmentof31.28public servicepursuant to paragraph (b). 31.29 (b) The owner of a large electric customer facility may 31.30 petition the commissioner of the departmentof public serviceto 31.31 exempt both electric and gas utilities serving the large energy 31.32 customer facility from the investment and expenditure 31.33 requirements of paragraph (a) with respect to retail revenues 31.34 attributable to the facility. At a minimum, the petition must 31.35 be supported by evidence relating to competitive or economic 31.36 pressures on the customer and a showing by the customer of 32.1 reasonable efforts to identify, evaluate, and implement 32.2 cost-effective conservation improvements at the facility. If a 32.3 petition is filed on or before October 1 of any year, the order 32.4 of the commissioner to exempt revenues attributable to the 32.5 facility can be effective no earlier than January 1 of the 32.6 following year. The commissioner shall not grant an exemption 32.7 if the commissioner determines that granting the exemption is 32.8 contrary to the public interest. The commissioner may, after 32.9 investigation, rescind any exemption granted under this 32.10 paragraph upon a determination that cost-effective energy 32.11 conservation improvements are available at the large electric 32.12 customer facility. For the purposes of this paragraph, 32.13 "cost-effective" means that the projected total cost of the 32.14 energy conservation improvement at the large electric customer 32.15 facility is less than the projected present value of the energy 32.16 and demand savings resulting from the energy conservation 32.17 improvement. For the purposes of investigations by the 32.18 commissioner under this paragraph, the owner of any large 32.19 electric customer facility shall, upon request, provide the 32.20 commissioner with updated information comparable to that 32.21 originally supplied in or with the owner's original petition 32.22 under this paragraph. 32.23 (c) The commissioner may require investments or spending 32.24 greater than the amounts required under this subdivision for a 32.25 public utility whose most recent advance forecast required under 32.26 section 216B.2422 or 216C.17 projects a peak demand deficit of 32.27 100 megawatts or greater within five years under mid-range 32.28 forecast assumptions. 32.29 (d) A public utility or owner of a large electric customer 32.30 facility may appeal a decision of the commissioner under 32.31 paragraph (b) or (c) to the commission under subdivision 2. In 32.32 reviewing a decision of the commissioner under paragraph (b) or 32.33 (c), the commission shall rescind the decision if it finds that 32.34 the required investments or spending will: 32.35 (1) not result in cost-effective energy conservation 32.36 improvements; or 33.1 (2) otherwise not be in the public interest. 33.2 (e) Each utility shall determine what portion of the amount 33.3 it sets aside for conservation improvement will be used for 33.4 conservation improvements under subdivision 2 and what portion 33.5 it will contribute to the energy and conservation account 33.6 established in subdivision 2a. A public utility may propose to 33.7 the commissioner to designate that all or a portion of funds 33.8 contributed to the account established in subdivision 2a be used 33.9 for research and development projects. Contributions must be 33.10 remitted to the commissionerof public serviceby February 1 of 33.11 each year. Nothing in this subdivision prohibits a public 33.12 utility from spending or investing for energy conservation 33.13 improvement more than required in this subdivision. 33.14 Sec. 45. Minnesota Statutes 2000, section 216B.241, 33.15 subdivision 1b, is amended to read: 33.16 Subd. 1b. [CONSERVATION IMPROVEMENT BY COOPERATIVE 33.17 ASSOCIATION OR MUNICIPALITY.] (a) This subdivision applies to: 33.18 (1) a cooperative electric association that generates and 33.19 transmits electricity to associations that provide electricity 33.20 at retail including a cooperative electric association not 33.21 located in this state that serves associations or others in the 33.22 state; 33.23 (2) a municipality that provides electric service to retail 33.24 customers; and 33.25 (3) a municipality with gross operating revenues in excess 33.26 of $5,000,000 from sales of natural gas to retail customers. 33.27 (b) Each cooperative electric association and municipality 33.28 subject to this subdivision shall spend and invest for energy 33.29 conservation improvements under this subdivision the following 33.30 amounts: 33.31 (1) for a municipality, 0.5 percent of its gross operating 33.32 revenues from the sale of gas and one percent of its gross 33.33 operating revenues from the sale of electricity not purchased 33.34 from a public utility governed by subdivision 1a or a 33.35 cooperative electric association governed by this subdivision, 33.36 excluding gross operating revenues from electric and gas service 34.1 provided in the state to large electric customer facilities; and 34.2 (2) for a cooperative electric association, 1.5 percent of 34.3 its gross operating revenues from service provided in the state, 34.4 excluding gross operating revenues from service provided in the 34.5 state to large electric customer facilities indirectly through a 34.6 distribution cooperative electric association. 34.7 (c) Each municipality and cooperative association subject 34.8 to this subdivision shall identify and implement energy 34.9 conservation improvement spending and investments that are 34.10 appropriate for the municipality or association, except that a 34.11 municipality or association may not spend or invest for energy 34.12 conservation improvements that directly benefit a large electric 34.13 customer facility. Each municipality and cooperative electric 34.14 association subject to this subdivision may spend and invest 34.15 annually up to 15 percent of the total amount required to be 34.16 spent and invested on energy conservation improvements under 34.17 this subdivision on research and development projects that meet 34.18 the definition of energy conservation improvement in subdivision 34.19 1 and that are funded directly by the municipality or 34.20 cooperative electric association. Load management may be used 34.21 to meet the requirements of this subdivision if it reduces the 34.22 demand for or increases the efficiency of electric services. A 34.23 generation and transmission cooperative electric association may 34.24 include as spending and investment required under this 34.25 subdivision conservation improvement spending and investment by 34.26 cooperative electric associations that provide electric service 34.27 at retail to consumers and that are served by the generation and 34.28 transmission association. 34.29 (d) By February 1 of each year, each municipality or 34.30 cooperative shall report to the commissioner its energy 34.31 conservation improvement spending and investments with a brief 34.32 analysis of effectiveness in reducing consumption of electricity 34.33 or gas. The commissioner shall review each report and make 34.34 recommendations, where appropriate, to the municipality or 34.35 association to increase the effectiveness of conservation 34.36 improvement activities. The commissioner shall also review each 35.1 report for whether a portion of the money spent on residential 35.2 conservation improvement programs is devoted to programs that 35.3 directly address the needs of renters and low-income persons 35.4 unless an insufficient number of appropriate programs are 35.5 available. For the purposes of this subdivision and subdivision 35.6 2, "low-income" means an income of less than 185 percent of the 35.7 federal poverty level. 35.8 (e) As part of its spending for conservation improvement, a 35.9 municipality or association may contribute to the energy and 35.10 conservation account. A municipality or association may propose 35.11 to the commissioner to designate that all or a portion of funds 35.12 contributed to the account be used for research and development 35.13 projects. Any amount contributed must be remitted to the 35.14 commissionerof public serviceby February 1 of each year. 35.15 Sec. 46. Minnesota Statutes 2000, section 216B.241, 35.16 subdivision 2b, is amended to read: 35.17 Subd. 2b. [RECOVERY OF EXPENSES.] The commission shall 35.18 allow a utility to recover expenses resulting from a 35.19 conservation improvement program required by the department and 35.20 contributions to the energy and conservation account, unless the 35.21 recovery would be inconsistent with a financial incentive 35.22 proposal approved by the commission. In addition, a utility may 35.23 file annually, or the public utilities commission may require 35.24 the utility to file, and the commission may approve, rate 35.25 schedules containing provisions for the automatic adjustment of 35.26 charges for utility service in direct relation to changes in the 35.27 expenses of the utility for real and personal property taxes, 35.28 fees, and permits, the amounts of which the utility cannot 35.29 control. A public utility is eligible to file for adjustment 35.30 for real and personal property taxes, fees, and permits under 35.31 this subdivision only if, in the year previous to the year in 35.32 which it files for adjustment, it has spent or invested at least 35.33 1.75 percent of its gross revenues from provision of electric 35.34 service, excluding gross operating revenues from electric 35.35 service provided in the state to large electric customer 35.36 facilities for which the commissionerof public servicehas 36.1 issued an exemption under subdivision 1a, paragraph (b), and 0.6 36.2 percent of its gross revenues from provision of gas service, 36.3 excluding gross operating revenues from gas services provided in 36.4 the state to large electric customer facilities for which the 36.5 commissionerof public servicehas issued an exemption under 36.6 subdivision 1a, paragraph (b), for that year for energy 36.7 conservation improvements under this section. 36.8 Sec. 47. Minnesota Statutes 2000, section 216C.01, 36.9 subdivision 1, is amended to read: 36.10 Subdivision 1. [APPLICABILITY.] The definitions in this 36.11 section apply tosections 216C.02, 216C.05, 216C.07 to 216C.19,36.12216C.20 to 216C.35, and 216C.373 to 216C.381this chapter. 36.13 Sec. 48. Minnesota Statutes 2000, section 216C.01, 36.14 subdivision 2, is amended to read: 36.15 Subd. 2. [COMMISSIONER.] "Commissioner" means the 36.16 commissioner ofthe department of public servicecommerce. 36.17 Sec. 49. Minnesota Statutes 2000, section 216C.01, 36.18 subdivision 3, is amended to read: 36.19 Subd. 3. [DEPARTMENT.] "Department" means the department 36.20 ofpublic servicecommerce. 36.21 Sec. 50. Minnesota Statutes 2000, section 216C.051, 36.22 subdivision 6, is amended to read: 36.23 Subd. 6. [ASSESSMENT; APPROPRIATION.] On request by the 36.24 cochairs of the legislative task force and after approval of the 36.25 legislative coordinating commission, the commissioner ofthe36.26department of public servicecommerce shall assess from electric 36.27 utilities, in addition to assessments made under section 36.28 216B.62, the amount requested for the operation of the task 36.29 force not to exceed $700,000. This authority to assess 36.30 continues until the commissioner has assessed a total of 36.31 $700,000. The amount assessed under this section is 36.32 appropriated to the director of the legislative coordinating 36.33 commission for those purposes, and is available until expended. 36.34 Sec. 51. Minnesota Statutes 2000, section 216C.37, 36.35 subdivision 1, is amended to read: 36.36 Subdivision 1. [DEFINITIONS.] In this section: 37.1 (a) "Commissioner" means the commissioner ofpublic service37.2 commerce. 37.3 (b) "Energy conservation investments" means all capital 37.4 expenditures that are associated with conservation measures 37.5 identified in an energy project study, and that have a ten-year 37.6 or less payback period. 37.7 (c) "Municipality" means any county, statutory or home rule 37.8 charter city, town, school district, or any combination of those 37.9 units operating under an agreement to jointly undertake projects 37.10 authorized in this section. 37.11 (d) "Energy project study" means a study of one or more 37.12 energy-related capital improvement projects analyzed in 37.13 sufficient detail to support a financing application. At a 37.14 minimum, it must include one year of energy consumption and cost 37.15 data, a description of existing conditions, a description of 37.16 proposed conditions, a detailed description of the costs of the 37.17 project, and calculations sufficient to document the proposed 37.18 energy savings. 37.19 Sec. 52. Minnesota Statutes 2000, section 216C.40, 37.20 subdivision 4, is amended to read: 37.21 Subd. 4. [CONDITION PRECEDENT.] The duties of the 37.22 department under this section are conditional on the 37.23 commissionerof public servicefinding that there will be at 37.24 least one public utility that will be subject to the assessment 37.25 created by Laws 1993, chapter 254, section 7. 37.26 Sec. 53. Minnesota Statutes 2000, section 237.02, is 37.27 amended to read: 37.28 237.02 [GENERAL AUTHORITY OF DEPARTMENT AND COMMISSION; 37.29 DEFINITIONS.] 37.30 The department ofpublic servicecommerce and the public 37.31 utilities commission, now existing under the laws of this state,37.32 are hereby vested with the same jurisdiction and supervisory 37.33 power over telephone and telecommunications companies doing 37.34 business in this state asit now hasthe commission's 37.35 predecessor, the railroad and warehouse commission, had over 37.36 railroad and express companies. The definitions set forth 38.1 insectionsections 216A.02shall applyand 216B.02 also apply 38.2 to this chapter. 38.3 Sec. 54. Minnesota Statutes 2000, section 237.075, 38.4 subdivision 2, is amended to read: 38.5 Subd. 2. [SUSPENSION OF PROPOSED RATE; HEARING; FINAL 38.6 DETERMINATION DEFINED.] (a) Whenever there is filed with the 38.7 commission as provided in subdivision 1 a schedule modifying or 38.8 resulting in a change in any rate then in force, the commission 38.9 may suspend the operation of the schedule by filing with the 38.10 schedule of rates and delivering to the affected telephone 38.11 company a statement in writing of its reasons for the suspension 38.12 at any time before the rates become effective. The suspension 38.13 shall not be for a longer period than ten months beyond the 38.14 initial filing date except as provided in paragraph (b). During 38.15 the suspension the commission shall determine whether all 38.16 questions of the reasonableness of the rates requested raised by 38.17 persons deemed interested or by theadministrative division of38.18thedepartmentof public servicecan be resolved to the 38.19 satisfaction of the commission. If the commission finds that 38.20 all significant issues raised have not been resolved to its 38.21 satisfaction, or upon petition by ten percent of the affected 38.22 customers or 250 affected customers, whichever is less, it shall 38.23 refer the matter to the office of administrative hearings with 38.24 instructions for a public hearing as a contested case pursuant 38.25 to chapter 14, except as otherwise provided in this section. 38.26 The commission may order that the issues presented by the 38.27 proposed rate changes be bifurcated into two separate hearings 38.28 as follows: (1) determination of the telephone company's 38.29 revenue requirements and (2) determination of the rate design. 38.30 Upon issuance of both administrative law judge reports, the 38.31 issues shall again be joined for consideration and final 38.32 determination by the commission. All prehearing discovery 38.33 activities of state agency intervenors shall be consolidated and 38.34 conducted by the department ofpublic servicecommerce. If the 38.35 commission does not make a final determination concerning a 38.36 schedule of rates within ten months after the initial filing 39.1 date, the schedule shall be deemed to have been approved by the 39.2 commission; except if a settlement has been submitted to and 39.3 rejected by the commission, the schedule is deemed to have been 39.4 approved 12 months after the initial filing. 39.5 (b) If the commission finds that it has insufficient time 39.6 during the suspension period to make a final determination of a 39.7 case involving changes in general rates because of the need to 39.8 make final determinations of other previously filed cases 39.9 involving changes in general rates under this section or section 39.10 216B.16, the commission may extend the suspension period to the 39.11 extent necessary to allow itself 20 working days to make the 39.12 final determination after it has made final determinations in 39.13 the previously filed cases. An extension of the suspension 39.14 period under this paragraph does not alter the setting of 39.15 interim rates under subdivision 3. 39.16 (c) For the purposes of this section, "final determination" 39.17 means the initial decision of the commission and not any order 39.18 which may be entered by the commission in response to a petition 39.19 for rehearing or other further relief. The commission may 39.20 further suspend rates until it determines all those petitions. 39.21 Sec. 55. Minnesota Statutes 2000, section 237.075, 39.22 subdivision 9, is amended to read: 39.23 Subd. 9. [ELECTION ON REGULATION; COOPERATIVE, MUNICIPAL, 39.24 INDEPENDENT.] For the purposes of this section, "telephone 39.25 company" shall not include a cooperative telephone association 39.26 organized under the provisions of chapter 308A, an independent 39.27 telephone company, or a municipal, unless the cooperative 39.28 telephone association, independent telephone company, or 39.29 municipal makes the election provided in this subdivision. 39.30 A cooperative telephone association may elect to become 39.31 subject to rate regulation by the commission pursuant to this 39.32 section. The election shall be (a) approved by the board of 39.33 directors of the association in accordance with the procedures 39.34 for amending the articles of incorporation contained in section 39.35 308A.135, excluding the filing requirements; or (b) approved by 39.36 a majority of members or stockholders voting by mail ballot 40.1 initiated by petition of no fewer than five percent of the 40.2 members or stockholders of the association. The ballot to be 40.3 used for the election shall be approved by the board of 40.4 directors and the departmentof public service. The department 40.5 shall mail the ballots to the association's members who shall 40.6 return the ballots to the department. The department will keep 40.7 the ballots sealed until a date agreed upon by the department 40.8 and the board of directors. On this date, representatives of 40.9 the department and the association shall count the ballots. If 40.10 a majority of the association's members who vote elect to become 40.11 subject to rate regulation by the commission, the election shall 40.12 be effective 30 days after the date the ballots are counted. 40.13 For purposes of this section, the term "member or stockholder" 40.14 shall mean either the member or stockholder of record or the 40.15 spouse of the member or stockholder unless the association has 40.16 been notified otherwise in writing. 40.17 A municipal may elect to become subject to rate regulation 40.18 by the commission pursuant to this section. The election shall 40.19 be (a) approved by resolution of the governing body of the 40.20 municipality; or (b) approved by a majority of the customers of 40.21 the municipal voting by mail ballot initiated by petition of no 40.22 fewer than 20 percent of the customers of the municipal. The 40.23 ballot to be used for the election shall be approved by the 40.24 governing body of the municipality and the departmentof public40.25service. The department shall mail the ballots to the 40.26 municipal's customers who shall return the ballots to the 40.27 department. The department will keep the ballots sealed until a 40.28 date agreed upon by the department and the governing body of the 40.29 municipality. On this date, representatives of the department 40.30 and the municipal shall count the ballots. If a majority of the 40.31 customers of the municipal who vote elect to become subject to 40.32 rate regulation by the commission, the election shall be 40.33 effective 30 days after the date the ballots are counted. For 40.34 purposes of this section, the term "customer" shall mean either 40.35 the person in whose name the telephone service is registered or 40.36 the spouse of the person unless the municipal utility has been 41.1 notified otherwise in writing. 41.2 An independent telephone company may elect to become 41.3 subject to rate regulation by the commission pursuant to this 41.4 section. The election shall be (a) approved by the board of 41.5 directors of the company in accordance with the procedures for 41.6 amending the articles of incorporation contained in sections 41.7 302A.133 to 302A.139, excluding the filing requirements; or (b) 41.8 approved by a majority of subscribers voting by mail ballot 41.9 initiated by petition of no fewer than five percent of the 41.10 subscribers of the company. The ballot to be used for the 41.11 election shall be approved by the board of directors and the 41.12 departmentof public service. The department shall mail the 41.13 ballots to the company's subscribers who shall return the 41.14 ballots to the department. The department will keep the ballots 41.15 sealed until a date agreed upon by the department and the board 41.16 of directors. On this date, representatives of the department 41.17 and the company shall count the ballots. If a majority of the 41.18 company's subscribers who vote elect to become subject to rate 41.19 regulation by the commission, the election shall be effective 30 41.20 days after the date the ballots are counted. For purposes of 41.21 this section the term "subscriber" shall mean either the person 41.22 in whose name the telephone service is registered or the spouse 41.23 of the person unless the independent telephone company has been 41.24 notified otherwise in writing. 41.25 Sec. 56. Minnesota Statutes 2000, section 237.082, is 41.26 amended to read: 41.27 237.082 [TELECOMMUNICATION SERVICE; POLICY OF INCREASED 41.28 SPEED AND SERVICE.] 41.29 When setting rates, adopting rules, or issuing orders 41.30 related to telecommunication matters that affect deployment of 41.31 the infrastructure, the commission may apply the goals of: 41.32 (1) achieving economically efficient investment in: 41.33 (i) higher speed telecommunication services; and 41.34 (ii) greater capacity for voice, video, and data 41.35 transmission; and 41.36 (2) just and reasonable rates. 42.1 The departmentof public servicemay apply the same goals 42.2 in its regulation of and recommendations regarding 42.3 telecommunication services. 42.4 Sec. 57. Minnesota Statutes 2000, section 237.21, is 42.5 amended to read: 42.6 237.21 [VALUATION OF TELEPHONE PROPERTY.] 42.7 In determining the value of any telephone property for rate 42.8 making purposes, no valuation shall be allowed upon the value of 42.9 any franchise granted by the state or any municipality where no 42.10 payment was or is being made to the state or municipality on 42.11 account thereof. The requirement as to reasonableness of rates 42.12 shall apply to each exchange unit as well as to telephone plants 42.13 as a whole. Provided, that in the case of a company operating a 42.14 telephone system consisting of more than one exchange in the 42.15 state, reasonableness of rates, as measured by earnings, shall 42.16 be determined by a reasonable return from the total operations 42.17 of the system within the state rather than by the return from 42.18 individual exchanges or services. No telephone rates or charges 42.19 shall be allowed or approved by the commission under any 42.20 circumstances, which are inadequate and which are intended to or 42.21 naturally tend to destroy competition or produce a monopoly in 42.22 telephone service in the locality affected. 42.23Laws 1953, chapter 25, shall have no effect on proceedings42.24pending before the courts or the department of public service at42.25the time of its enactment.42.26 Sec. 58. Minnesota Statutes 2000, section 237.30, is 42.27 amended to read: 42.28 237.30 [TELEPHONE INVESTIGATION FUND; APPROPRIATION.] 42.29 The sum of $25,000 is hereby appropriated out of any moneys 42.30 in the state treasury not otherwise appropriated, to establish 42.31 and provide a revolving fund to be known as the Minnesota 42.32 Telephone Investigation Fund for the use of the department of 42.33public servicecommerce and of the attorney general in 42.34 investigations, valuations, and revaluations under section 42.35 237.295. All sums paid by the telephone companies to reimburse 42.36 the departmentof public servicefor its expenses pursuant to 43.1 section 237.295 shall be credited to the revolving fund and 43.2 shall be deposited in a separate bank account and not commingled 43.3 with any other state funds or moneys, but any balance in excess 43.4 of $25,000 in the revolving fund at the end of each fiscal year 43.5 shall be paid into the state treasury and credited to the 43.6 general fund. The sum of $25,000 herein appropriated and all 43.7 subsequent credits to said revolving fund shall be paid upon the 43.8 warrant of the commissioner of finance upon application of the 43.9 department or of the attorney general to an aggregate amount of 43.10 not more than one-half of such sums to each of them, which 43.11 proportion shall be constantly maintained in all credits and 43.12 withdrawals from the revolving fund. 43.13 Sec. 59. Minnesota Statutes 2000, section 237.462, 43.14 subdivision 6, is amended to read: 43.15 Subd. 6. [EXPEDITED PROCEEDING.] (a) The commission may 43.16 order an expedited proceeding under section 237.61 and this 43.17 subdivision, in lieu of a contested case under chapter 14, to 43.18 develop an evidentiary record in any proceeding that involves 43.19 contested issues of material fact either upon request of a party 43.20 or upon the commission's own motion if the complaint alleges a 43.21 violation described in subdivision 1, clauses (1) to (4). The 43.22 commission may order an expedited proceeding under this 43.23 subdivision if the commission finds an expedited proceeding is 43.24 in the public interest, regardless of whether all parties agree 43.25 to the expedited proceeding. In determining whether to grant an 43.26 expedited proceeding, the commission may consider any evidence 43.27 of impairment of the provision of telecommunications service to 43.28 subscribers in the state or impairment of the provision of any 43.29 service or network element subject to the jurisdiction of the 43.30 commission. 43.31 (b) Any request for an expedited proceeding under this 43.32 subdivision must be noted in the title of the first filing by a 43.33 party. The filing shall also state the specific circumstances 43.34 that the party believes warrant an expedited proceeding under 43.35 this subdivision. 43.36 (c) A complaint requesting an expedited proceeding, unless 44.1 filed by the departmentof public serviceor the attorney 44.2 general, must set forth the actions and the dates of the actions 44.3 taken by the party filing the complaint to attempt to resolve 44.4 the alleged violations with the party against whom the complaint 44.5 is filed, including any requests that the party against whom the 44.6 complaint is filed correct the conduct giving rise to the 44.7 violations alleged in the complaint. If no such actions were 44.8 taken by the complainant, the complaint shall set forth the 44.9 reasons why no such actions were taken. The commission may 44.10 order an expedited proceeding even if the filing complaint fails 44.11 to meet this requirement if the commission determines that it 44.12 would be in the public interest to go forward with the expedited 44.13 proceeding without information in the complaint on attempts to 44.14 resolve the dispute. 44.15 (d) The complaining party shall serve the complaint along 44.16 with any written discovery requests by hand delivery and 44.17 facsimile on the party against whom the complaint is filed, the 44.18 departmentof public service, and the office of the attorney 44.19 general on the same day the complaint is filed with the 44.20 commission. 44.21 (e) The party responding to a complaint that includes a 44.22 request for an expedited proceeding under this subdivision shall 44.23 file an answer within 15 days after receiving the complaint. 44.24 The responding party shall state in the answer the party's 44.25 position on the request for an expedited proceeding. The 44.26 responding party shall serve with the answer any objections to 44.27 any written discovery requests as well as any written discovery 44.28 requests the responding party wishes to serve on the complaining 44.29 party. Except for stating any objections, the responding party 44.30 is not required to answer any written discovery requests under 44.31 this subdivision until a time established at a prehearing 44.32 conference. The responding party shall serve a copy of the 44.33 answer and any discovery requests and objections on the 44.34 complaining party, the departmentof public service, and office 44.35 of the attorney general by hand delivery and facsimile on the 44.36 same day as the answer is filed with the commission. 45.1 (f) Within 15 days of receiving the answer to a complaint 45.2 in a proceeding in which a party has requested an expedited 45.3 hearing, the commission shall determine whether the filing 45.4 warrants an expedited proceeding. If the commission decides to 45.5 grant a request by a party or if the commission orders an 45.6 expedited proceeding on its own motion, the commission shall 45.7 conduct within seven days of the decision a prehearing 45.8 conference to schedule the evidentiary hearing. During the 45.9 prehearing conference, the commission shall establish a 45.10 discovery schedule that requires all discovery to be completed 45.11 no later than three days before the start of the hearing. An 45.12 evidentiary hearing under this subdivision must commence no 45.13 later than 45 days after the commission's decision to order an 45.14 expedited proceeding. A quorum of the commission shall preside 45.15 at any evidentiary hearing under this subdivision unless all the 45.16 parties to the proceeding agree otherwise. 45.17 (g) All pleadings submitted under this subdivision must be 45.18 verified and all oral statements of fact made in a hearing or 45.19 deposition under this subdivision must be made under oath or 45.20 affirmation. 45.21 (h) The commission shall issue a written decision and final 45.22 order on the complaint within 15 days after the close of the 45.23 evidentiary hearing under this subdivision. On the day of 45.24 issuance, the commission shall notify the parties by facsimile 45.25 that a final order has been issued and shall provide each party 45.26 with a copy of the final order. 45.27 (i) The commission may extend any time periods under this 45.28 subdivision if all parties to the proceeding agree to the 45.29 extension or if the commission finds the extension is necessary 45.30 to ensure a just resolution of the complaint. 45.31 (j) Except as otherwise provided in this subdivision, an 45.32 expedited proceeding under this subdivision shall be governed by 45.33 the following procedural rules: 45.34 (1) the parties shall have the discovery rights provided in 45.35 Minnesota Rules, parts 1400.6700 to 1400.7000; 45.36 (2) the parties shall have the right to cross-examine 46.1 witnesses as provided in section 14.60, subdivision 3; 46.2 (3) the admissibility of evidence and development of record 46.3 for decision shall be governed by section 14.60 and Minnesota 46.4 Rules, part 1400.7300; and 46.5 (4) the commission may apply other procedures or standards 46.6 included in the rules of the office of administrative hearings, 46.7 as necessary to ensure the fair and expeditious resolution of 46.8 disputes under this section. 46.9 Sec. 60. Minnesota Statutes 2000, section 237.51, 46.10 subdivision 1, is amended to read: 46.11 Subdivision 1. [CREATION.] Thedepartment of public46.12servicecommissioner of commerce shall administer through 46.13 interagency agreement with thedepartmentcommissioner of human 46.14 services a program to distribute communication devices to 46.15 eligible communication-impaired persons and contract with a 46.16 local consumer group that serves communication-impaired persons 46.17 to create and maintain a telecommunication relay service. For 46.18 purposes of sections 237.51 to 237.56, the department ofpublic46.19servicecommerce and any organization with which it contracts 46.20 pursuant to this section or section 237.54, subdivision 2, are 46.21 not telephone companies or telecommunications carriers as 46.22 defined in section 237.01. 46.23 Sec. 61. Minnesota Statutes 2000, section 237.51, 46.24 subdivision 5, is amended to read: 46.25 Subd. 5. [DEPARTMENT OF PUBLIC SERVICECOMMISSIONER OF 46.26 COMMERCE DUTIES.] In addition to any duties specified elsewhere 46.27 in sections 237.51 to 237.56, thedepartment of public service46.28 commissioner of commerce shall: 46.29 (1) prepare the reports required by section 237.55; 46.30 (2) administer the fund created in section 237.52; and 46.31 (3) adopt rules under chapter 14 to implement the 46.32 provisions of sections 237.50 to 237.56. 46.33 Sec. 62. Minnesota Statutes 2000, section 237.51, 46.34 subdivision 5a, is amended to read: 46.35 Subd. 5a. [DEPARTMENT OF HUMAN SERVICES DUTIES.] (a) In 46.36 addition to any duties specified elsewhere in sections 237.51 to 47.1 237.56, thedepartmentcommissioner of human services shall: 47.2 (1) define economic hardship, special needs, and household 47.3 criteria so as to determine the priority of eligible applicants 47.4 for initial distribution of devices and to determine 47.5 circumstances necessitating provision of more than one 47.6 communication device per household; 47.7 (2) establish a method to verify eligibility requirements; 47.8 (3) establish specifications for communication devices to 47.9 be purchased under section 237.53, subdivision 3; and 47.10 (4) inform the public and specifically the community of 47.11 communication-impaired persons of the program. 47.12 (b) Thedepartmentcommissioner may establish an advisory 47.13 board to advise the department in carrying out the duties 47.14 specified in this section and to advise thedepartment of public47.15servicecommissioner of commerce in carrying outitsduties 47.16 under section 237.54. If so established, the advisory board 47.17 must include, at a minimum, the following communication-impaired 47.18 persons: 47.19 (1) at least one member who is deaf; 47.20 (2) at least one member who is speech impaired; 47.21 (3) at least one member who is mobility impaired; and 47.22 (4) at least one member who is hard-of-hearing. 47.23 The membership terms, compensation, and removal of members 47.24 and the filling of membership vacancies are governed by section 47.25 15.059. Advisory board meetings shall be held at the discretion 47.26 of the commissioner. 47.27 Sec. 63. Minnesota Statutes 2000, section 237.52, 47.28 subdivision 2, is amended to read: 47.29 Subd. 2. [ASSESSMENT.] Thedepartment of public47.30servicecommissioner of commerce shall annually recommend to the 47.31 commission an adequate and appropriate surcharge and budget to 47.32 implement sections 237.50 to 237.56. The public utilities 47.33 commission shall review the budget for reasonableness and may 47.34 modify the budget to the extent it is unreasonable. The 47.35 commission shall annually determine the funding mechanism to be 47.36 used within 60 days of receipt of the recommendation of the 48.1 department and shall order the imposition of surcharges 48.2 effective on the earliest practicable date. The commission 48.3 shall establish a monthly charge no greater than 20 cents for 48.4 each customer access line, including trunk equivalents as 48.5 designated by the commission pursuant to section 403.11, 48.6 subdivision 1. 48.7 Sec. 64. Minnesota Statutes 2000, section 237.52, 48.8 subdivision 4, is amended to read: 48.9 Subd. 4. [APPROPRIATION.] Money in the fund is 48.10 appropriated to thedepartment of public servicecommissioner of 48.11 commerce to implement sections 237.51 to 237.56. 48.12 Sec. 65. Minnesota Statutes 2000, section 237.52, 48.13 subdivision 5, is amended to read: 48.14 Subd. 5. [EXPENDITURES.] Money in the fund may only be 48.15 used for: 48.16 (1) expenses of the department ofpublic servicecommerce, 48.17 including personnel cost, public relations, advisory board 48.18 members' expenses, preparation of reports, and other reasonable 48.19 expenses not to exceed ten percent of total program 48.20 expenditures; 48.21 (2) reimbursing the commissioner of human services for 48.22 purchases made or services provided pursuant to section 237.53; 48.23 (3) reimbursing telephone companies for purchases made or 48.24 services provided under section 237.53, subdivision 5; and 48.25 (4) contracting for establishment and operation of the 48.26 telecommunication relay service required by section 237.54. 48.27 All costs directly associated with the establishment of the 48.28 program, the purchase and distribution of communication devices, 48.29 and the establishment and operation of the telecommunication 48.30 relay service are either reimbursable or directly payable from 48.31 the fund after authorization by thedepartment of public service48.32 commissioner of commerce. Thedepartment of public48.33servicecommissioner of commerce shall contract with the message 48.34 relay service operator to indemnify the local exchange carriers 48.35 of the relay service for any fines imposed by the Federal 48.36 Communications Commission related to the failure of the relay 49.1 service to comply with federal service standards. 49.2 Notwithstanding section 16A.41, thedepartment of public service49.3 commissioner may advance money to the contractor of the 49.4 telecommunication relay service if the contractor establishes to 49.5 thedepartment'scommissioner's satisfaction that the advance 49.6 payment is necessary for the operation of the service. The 49.7 advance payment may be used only for working capital reserve for 49.8 the operation of the service. The advance payment must be 49.9 offset or repaid by the end of the contract fiscal year together 49.10 with interest accrued from the date of payment. 49.11 Sec. 66. Minnesota Statutes 2000, section 237.54, 49.12 subdivision 2, is amended to read: 49.13 Subd. 2. [OPERATION.] Thedepartment of public49.14servicecommissioner of commerce shall contract with a local 49.15 consumer organization that serves communication-impaired persons 49.16 for operation and maintenance of the telecommunication relay 49.17 system. Thedepartmentcommissioner may contract with other 49.18 than a local consumer organization if no local consumer 49.19 organization is available to enter into or perform a reasonable 49.20 contract or the only available consumer organization fails to 49.21 comply with terms of a contract. The operator of the system 49.22 shall keep all messages confidential, shall train personnel in 49.23 the unique needs of communication-impaired people, and shall 49.24 inform communication-impaired persons and the public of the 49.25 availability and use of the system. The operator shall not 49.26 relay a message unless it originates or terminates through a 49.27 communication device for the deaf or a Brailling device for use 49.28 with a telephone. 49.29 Sec. 67. Minnesota Statutes 2000, section 237.55, is 49.30 amended to read: 49.31 237.55 [ANNUAL REPORT ON COMMUNICATION ACCESS.] 49.32 Thedepartment of public servicecommissioner of commerce 49.33 must prepare a report for presentation to the commission by 49.34 January 31 of each year. Each report must review the 49.35 accessibility of the telephone system to communication-impaired 49.36 persons, review the ability of non-communication-impaired 50.1 persons to communicate with communication-impaired persons via 50.2 the telephone system, describe services provided, account for 50.3 money received and disbursed annually for each aspect of the 50.4 program to date, and include predicted future operation. 50.5 Sec. 68. Minnesota Statutes 2000, section 237.59, 50.6 subdivision 2, is amended to read: 50.7 Subd. 2. [PETITION.] (a) A telephone company, or the 50.8 commission on its own motion, may petition to have a service of 50.9 that telephone company classified as subject to effective 50.10 competition or emerging competition. The petition must be 50.11 served on the commission, the departmentof public service, the 50.12 office of the attorney general, and any other person designated 50.13 by the commission. The petition must contain at least: 50.14 (1) a list of the known alternative providers of the 50.15 service available to the company's customers; and 50.16 (2) a description of affiliate relationships with any other 50.17 provider of the service in the company's market. 50.18 (b) At the time the company first offers a service, it 50.19 shall also file a petition with the commission for a 50.20 determination as to how the service should be classified. In 50.21 the event that no interested party or the commission objects to 50.22 the company's proposed classification within 20 days of the 50.23 filing of the petition, the company's proposed classification of 50.24 the service is deemed approved. If an objection is filed, the 50.25 commission shall determine the appropriate classification after 50.26 a hearing conducted pursuant to section 237.61. In either 50.27 event, the company may offer the new service to its customers 50.28 ten days after the company files the price list and incremental 50.29 cost study as provided in section 237.60, subdivision 2, 50.30 paragraph (f). 50.31 (c) A new service may be classified as subject to effective 50.32 competition or emerging competition pursuant to the criteria set 50.33 forth in subdivision 5. A new service must be regulated under 50.34 the emerging competition provisions if it is not integrally 50.35 related to the provision of adequate local service or access to 50.36 the telephone network or to the privacy, health, or safety of 51.1 the company's customers, whether or not it meets the criteria 51.2 set forth in subdivision 5. 51.3 Sec. 69. Minnesota Statutes 2000, section 237.768, is 51.4 amended to read: 51.5 237.768 [PERIODIC FINANCIAL REPORT.] 51.6 In addition to the reports required under section 237.766, 51.7 an alternative regulation plan may require a telephone company 51.8 to file with the department an annual report of financial 51.9 matters for the previous calendar year on or before May 1 of 51.10 each year on report forms furnished by the departmentof public51.11servicein the same manner as is required of other telephone 51.12 companies on August 1, 1995. In addition, any company subject 51.13 to a plan shall file with the commission and department a copy 51.14 of any filings it has made to the Federal Communications 51.15 Commission regarding the provisions of video programming 51.16 provided through a video dial tone facility in Minnesota. An 51.17 alternative regulation plan may require a telephone company to 51.18 maintain its accounts in accordance with the system of accounts 51.19 prescribed for the company by the commission under section 51.20 237.10. 51.21 Sec. 70. Minnesota Statutes 2000, section 239.01, is 51.22 amended to read: 51.23 239.01 [WEIGHTS AND MEASURES DIVISION; JURISDICTION.] 51.24 The weights and measures division, referred to in this 51.25 chapter as the division, is created under the jurisdiction of 51.26 the department ofpublic servicecommerce. The division has 51.27 supervision and control over all weights, weighing devices, and 51.28 measures in the state. 51.29 Sec. 71. Minnesota Statutes 2000, section 325E.11, is 51.30 amended to read: 51.31 325E.11 [COLLECTION FACILITIES; NOTICE.] 51.32 (a) Any person selling at retail or offering motor oil or 51.33 motor oil filters for retail sale in this state shall: 51.34 (1) post a notice indicating the nearest location where 51.35 used motor oil and used motor oil filters may be returned at no 51.36 cost for recycling or reuse, post a toll-free telephone number 52.1 that may be called by the public to determine a convenient 52.2 location, or post a listing of locations where used motor oil 52.3 and used motor oil filters may be returned at no cost for 52.4 recycling or reuse; or 52.5 (2) if the person is subject to section 325E.112, 52.6 subdivision 1, paragraph (b), post a notice informing customers 52.7 purchasing motor oil or motor oil filters of the location of the 52.8 used motor oil and used motor oil filter collection site 52.9 established by the retailer in accordance with section 325E.112, 52.10 subdivision 1, paragraph (b), where used motor oil and used 52.11 motor oil filters may be returned at no cost. 52.12 (b) A notice under paragraph (a) shall be posted on or 52.13 adjacent to the motor oil and motor oil filter displays, be at 52.14 least 8-1/2 inches by 11 inches in size, contain the universal 52.15 recycling symbol with the following language: 52.16 (1) "It is illegal to put used oil and used motor oil 52.17 filters in the garbage."; 52.18 (2) "Recycle your used oil and used motor oil filters."; 52.19 and 52.20 (3)(i) "There is a free collection site here for your used 52.21 oil and used motor oil filters."; 52.22 (ii) "There is a free collection site for used oil and used 52.23 motor oil filters located at (name of business and street 52.24 address)."; 52.25 (iii) "For the location of a free collection site for used 52.26 oil and used motor oil filters call (toll-free phone number)."; 52.27 or 52.28 (iv) "Here is a list of free collection sites for used oil 52.29 and used motor oil filters." 52.30 (c) The division of weights and measuresunderin the 52.31 department ofpublic servicecommerce shall enforce compliance 52.32 with this section as provided in section 239.54. The pollution 52.33 control agency shall enforce compliance with this section under 52.34 sections 115.071 and 116.072 in coordination with the division 52.35 of weights and measures. 52.36 Sec. 72. Minnesota Statutes 2000, section 325E.115, 53.1 subdivision 2, is amended to read: 53.2 Subd. 2. [COMPLIANCE; MANAGEMENT.] The division of weights 53.3 and measuresunderin the department ofpublic servicecommerce 53.4 shall enforce compliance of subdivision 1 as provided in section 53.5 239.54. The commissioner of the pollution control agency shall 53.6 inform persons governed by subdivision 1 of requirements for 53.7 managing lead acid batteries. 53.8 Sec. 73. Minnesota Statutes 2000, section 326.243, is 53.9 amended to read: 53.10 326.243 [SAFETY STANDARDS.] 53.11 All electrical wiring, apparatus and equipment for electric 53.12 light, heat and power, alarm and communication systems shall 53.13 comply with the rules of the department ofpublic service, the53.14commissioner ofcommerce,or the department of labor and 53.15 industry, as applicable, and be installed in conformity with 53.16 accepted standards of construction for safety to life and 53.17 property. For the purposes of this chapter, the rules and 53.18 safety standards stated at the time the work is done in the then 53.19 most recently published edition of the National Electrical Code 53.20 as adopted by the National Fire Protection Association, Inc. and 53.21 approved by the American National Standards Institute, and the 53.22 National Electrical Safety Code as published by the Institute of 53.23 Electrical and Electronics Engineers, Inc. and approved by the 53.24 American National Standards Institute, shall be prima facie 53.25 evidence of accepted standards of construction for safety to 53.26 life and property; provided further, that in the event a 53.27 Minnesota Building Code is formulated pursuant to section 53.28 16B.61, containing approved methods of electrical construction 53.29 for safety to life and property, compliance with said methods of 53.30 electrical construction of said Minnesota Building Code shall 53.31 also constitute compliance with this section, and provided 53.32 further, that nothing herein contained shall prohibit any 53.33 political subdivision from making and enforcing more stringent 53.34 requirements than set forth herein and such requirements shall 53.35 be complied with by all licensed electricians working within the 53.36 jurisdiction of such political subdivisions. 54.1 Sec. 74. Minnesota Statutes 2000, section 484.50, is 54.2 amended to read: 54.3 484.50 [SUMMONS; PLACE OF TRIAL; ST. LOUIS COUNTY.] 54.4 A party wishing to have an appeal from an order of the 54.5department of public servicepublic utilities commission, an 54.6 election contest, a lien foreclosure, or a civil cause or 54.7 proceeding of a kind commenced or appealed by a party in the 54.8 court, tried in the city of Virginia shall, in the summons, 54.9 notice of appeal in a matter, or other jurisdictional instrument 54.10 issued, in addition to the usual provisions, print, stamp, or 54.11 write thereon the words, "to be tried at the city of Virginia," 54.12 and a party wishing a matter commenced or appealed by a party in 54.13 the court tried at the city of Hibbing shall, in the summons, 54.14 notice of appeal in a matter, or other jurisdictional instrument 54.15 issued, in addition to the usual provisions, print, stamp, or 54.16 write thereon the words, "to be tried at the city of Hibbing," 54.17 and in a case where a summons, notice of appeal in a matter, or 54.18 other jurisdictional instrument contains a specification, the 54.19 case shall be tried at the city of Virginia, or the city of 54.20 Hibbing, as the case may be, unless the defendant shall have the 54.21 place of trial fixed in the manner specified in this section. 54.22 If the place of trial designated is not the proper place of 54.23 trial, as specified in sections 484.44 to 484.52, the cause 54.24 shall nevertheless be tried in a place, unless the defendant, in 54.25 an answer in addition to the other allegations of defense, shall 54.26 plead the location of the defendant's residence, and demand that 54.27 the action be tried at the place of holding the court nearest 54.28 the defendant's residence, as provided in this section; and in a 54.29 case where the answer of the defendant pleads the place of 54.30 residence and makes a demand of place of trial, the plaintiff, 54.31 in reply, may admit or deny the allegations of residence, and if 54.32 the allegations of residence are not expressly denied, the case 54.33 shall be tried at the place demanded by the defendant, and if 54.34 the allegations of residence are denied, the place of trial 54.35 shall be determined by the court on motion. 54.36 If there are several defendants, residing at different 55.1 places in a county, the trial shall be at the place in which the 55.2 majority of the defendants unite in demanding, or if the numbers 55.3 are equal, at the place nearest the residence of the majority of 55.4 the defendants. 55.5 The venue of an action may be changed from one of these 55.6 places to another, by order of the court, in the following cases: 55.7 (1) Upon written consent of the parties; 55.8 (2) When it appears, on motion, that a party has been made 55.9 a defendant for the purpose of preventing a change of venue as 55.10 provided in this section; 55.11 (3) When an impartial trial cannot be held in the place 55.12 where the action is pending; or 55.13 (4) When the convenience of witnesses and the ends of 55.14 justice would be promoted by the change. 55.15 Application for a change under clause (2), (3), or (4), 55.16 shall be made by motion which shall be returnable and heard at 55.17 the place of commencement of the action. 55.18 Sec. 75. [REPEALER.] 55.19 Minnesota Statutes 2000, sections 216A.06; and 237.69, 55.20 subdivision 3, are repealed. 55.21 Sec. 76. [INSTRUCTION TO REVISOR.] 55.22 The revisor of statutes shall change the words "public 55.23 service" to the word "commerce" in the following sections of 55.24 Minnesota Statutes: 13.68; 13.681; 17A.04, subdivisions 6, 7, 55.25 and 8; 17A.10, subdivision 1; 41A.09, subdivision 7; 116C.03, 55.26 subdivision 2; 160.262, subdivision 3; 216A.085, subdivision 1; 55.27 216B.241, subdivision 1; 237.295, subdivision 1; 237.662, 55.28 subdivision 3; 237.70, subdivision 7; 239.05, subdivisions 6c, 55.29 7a, 8, and 8c; 272.0211, subdivision 1; 296A.02, subdivision 1; 55.30 308A.210, subdivisions 5 and 6; 325F.733, subdivision 7; and 55.31 469.164, subdivision 2. 55.32 Sec. 77. [EFFECTIVE DATE.]. 55.33 This article is effective July 1, 2001. 55.34 ARTICLE 2 55.35 Section 1. Minnesota Statutes 2000, section 45.011, 55.36 subdivision 1, is amended to read: 56.1 Subdivision 1. [SCOPE.] As used in chapters 45 to 83, 56.2 155A, 309, 332, 345, and 359, and sections 325D.30 to 325D.42, 56.3 326.83 to 326.991, and 386.61 to 386.78, unless the context 56.4 indicates otherwise, the terms defined in this section have the 56.5 meanings given them. 56.6 Sec. 2. Minnesota Statutes 2000, section 270.06, is 56.7 amended to read: 56.8 270.06 [POWERS AND DUTIES.] 56.9 The commissioner of revenue shall: 56.10 (1) have and exercise general supervision over the 56.11 administration of the assessment and taxation laws of the state, 56.12 over assessors, town, county, and city boards of review and 56.13 equalization, and all other assessing officers in the 56.14 performance of their duties, to the end that all assessments of 56.15 property be made relatively just and equal in compliance with 56.16 the laws of the state; 56.17 (2) confer with, advise, and give the necessary 56.18 instructions and directions to local assessors and local boards 56.19 of review throughout the state as to their duties under the laws 56.20 of the state; 56.21 (3) direct proceedings, actions, and prosecutions to be 56.22 instituted to enforce the laws relating to the liability and 56.23 punishment of public officers and officers and agents of 56.24 corporations for failure or negligence to comply with the 56.25 provisions of the laws of this state governing returns of 56.26 assessment and taxation of property, and cause complaints to be 56.27 made against local assessors, members of boards of equalization, 56.28 members of boards of review, or any other assessing or taxing 56.29 officer, to the proper authority, for their removal from office 56.30 for misconduct or negligence of duty; 56.31 (4) require county attorneys to assist in the commencement 56.32 of prosecutions in actions or proceedings for removal, 56.33 forfeiture and punishment for violation of the laws of this 56.34 state in respect to the assessment and taxation of property in 56.35 their respective districts or counties; 56.36 (5) require town, city, county, and other public officers 57.1 to report information as to the assessment of property, 57.2 collection of taxes received from licenses and other sources, 57.3 and such other information as may be needful in the work of the 57.4 department of revenue, in such form and upon such blanks as the 57.5 commissioner may prescribe; 57.6 (6) require individuals, copartnerships, companies, 57.7 associations, and corporations to furnish information concerning 57.8 their capital, funded or other debt, current assets and 57.9 liabilities, earnings, operating expenses, taxes, as well as all 57.10 other statements now required by law for taxation purposes; 57.11 (7) subpoena witnesses, at a time and place reasonable 57.12 under the circumstances, to appear and give testimony, and to 57.13 produce books, records, papers and documents for inspection and 57.14 copying relating to any matter which the commissioner may have 57.15 authority to investigate or determine; 57.16 (8) issue a subpoena which does not identify the person or 57.17 persons with respect to whose liability the subpoena is issued, 57.18 but only if (a) the subpoena relates to the investigation of a 57.19 particular person or ascertainable group or class of persons, 57.20 (b) there is a reasonable basis for believing that such person 57.21 or group or class of persons may fail or may have failed to 57.22 comply with any law administered by the commissioner, (c) the 57.23 information sought to be obtained from the examination of the 57.24 records (and the identity of the person or persons with respect 57.25 to whose liability the subpoena is issued) is not readily 57.26 available from other sources, (d) the subpoena is clear and 57.27 specific as to the information sought to be obtained, and (e) 57.28 the information sought to be obtained is limited solely to the 57.29 scope of the investigation. Provided further that the party 57.30 served with a subpoena which does not identify the person or 57.31 persons with respect to whose tax liability the subpoena is 57.32 issued shall have the right, within 20 days after service of the 57.33 subpoena, to petition the district court for the judicial 57.34 district in which lies the county in which that party is located 57.35 for a determination as to whether the commissioner of revenue 57.36 has complied with all the requirements in (a) to (e), and thus, 58.1 whether the subpoena is enforceable. If no such petition is 58.2 made by the party served within the time prescribed, the 58.3 subpoena shall have the force and effect of a court order; 58.4 (9) cause the deposition of witnesses residing within or 58.5 without the state, or absent therefrom, to be taken, upon notice 58.6 to the interested party, if any, in like manner that depositions 58.7 of witnesses are taken in civil actions in the district court, 58.8 in any matter which the commissioner may have authority to 58.9 investigate or determine; 58.10 (10) investigate the tax laws of other states and countries 58.11 and to formulate and submit to the legislature such legislation 58.12 as the commissioner may deem expedient to prevent evasions of 58.13 assessment and taxing laws, and secure just and equal taxation 58.14 and improvement in the system of assessment and taxation in this 58.15 state; 58.16 (11) consult and confer with the governor upon the subject 58.17 of taxation, the administration of the laws in regard thereto, 58.18 and the progress of the work of the department of revenue, and 58.19 furnish the governor, from time to time, such assistance and 58.20 information as the governor may require relating to tax matters; 58.21 (12) transmit to the governor, on or before the third 58.22 Monday in December of each even-numbered year, and to each 58.23 member of the legislature, on or before November 15 of each 58.24 even-numbered year, the report of the department of revenue for 58.25 the preceding years, showing all the taxable property in the 58.26 state and the value of the same, in tabulated form; 58.27 (13) inquire into the methods of assessment and taxation 58.28 and ascertain whether the assessors faithfully discharge their 58.29 duties, particularly as to their compliance with the laws 58.30 requiring the assessment of all property not exempt from 58.31 taxation; 58.32 (14) administer and enforce the assessment and collection 58.33 of state taxes and fees, including the use of any remedy 58.34 available to nongovernmental creditors, and, from time to time, 58.35 make, publish, and distribute rules for the administration and 58.36 enforcement of assessments and fees administered by the 59.1 commissioner and state tax laws. The rules have the force of 59.2 law; 59.3 (15) prepare blank forms for the returns required by state 59.4 tax law and distribute them throughout the state, furnishing 59.5 them subject to charge on application; 59.6 (16) prescribe rules governing the qualification and 59.7 practice of agents, attorneys, or other persons representing 59.8 taxpayers before the commissioner. The rules may require that 59.9 those persons, agents, and attorneys show that they are of good 59.10 character and in good repute, have the necessary qualifications 59.11 to give taxpayers valuable services, and are otherwise competent 59.12 to advise and assist taxpayers in the presentation of their case 59.13 before being recognized as representatives of taxpayers. After 59.14 due notice and opportunity for hearing, the commissioner may 59.15 suspend and disbar from further practice before the commissioner 59.16 any person, agent, or attorney who is shown to be incompetent or 59.17 disreputable, who refuses to comply with the rules, or who with 59.18 intent to defraud, willfully or knowingly deceives, misleads, or 59.19 threatens a taxpayer or prospective taxpayer, by words, 59.20 circular, letter, or by advertisement. This clause does not 59.21 curtail the rights of individuals to appear in their own behalf 59.22 or partners or corporations' officers to appear in behalf of 59.23 their respective partnerships or corporations; 59.24 (17) appoint agents as the commissioner considers necessary 59.25 to make examinations and determinations. The agents have the 59.26 rights and powers conferred on the commissioner to subpoena, 59.27 examine, and copy books, records, papers, or memoranda, subpoena 59.28 witnesses, administer oaths and affirmations, and take 59.29 testimony. In addition to administrative subpoenas of the 59.30 commissioner and the agents, upon demand of the commissioner or 59.31 an agent, the court administrator of any district court shall 59.32 issue a subpoena for the attendance of a witness or the 59.33 production of books, papers, records, or memoranda before the 59.34 agent for inspection and copying. Disobedience of a court 59.35 administrator's subpoena shall be punished by the district court 59.36 of the district in which the subpoena is issued, or in the case 60.1 of a subpoena issued by the commissioner or an agent, by the 60.2 district court of the district in which the party served with 60.3 the subpoena is located, in the same manner as contempt of the 60.4 district court; 60.5 (18) appoint and employ additional help, purchase supplies 60.6 or materials, or incur other expenditures in the enforcement of 60.7 state tax laws as considered necessary. The salaries of all 60.8 agents and employees provided for in this chapter shall be fixed 60.9 by the appointing authority, subject to the approval of the 60.10 commissioner of administration; 60.11 (19) execute and administer any agreement with the 60.12 secretary of the treasury of the United States or a 60.13 representative of another state regarding the exchange of 60.14 information and administration of the tax laws; 60.15 (20)administer and enforce the provisions of sections60.16325D.30 to 325D.42, the Minnesota Unfair Cigarette Sales Act;60.17(21)authorize the use of unmarked motor vehicles to 60.18 conduct seizures or criminal investigations pursuant to the 60.19 commissioner's authority; and 60.20(22)(21) exercise other powers and perform other duties 60.21 required of or imposed upon the commissioner of revenue by law. 60.22 Sec. 3. Minnesota Statutes 2000, section 297F.04, 60.23 subdivision 1, is amended to read: 60.24 Subdivision 1. [POWERS OF COMMISSIONER.] The commissioner 60.25 may revoke or suspend the license or licenses of any distributor 60.26 or subjobber for violation of this chapter, any other act 60.27 applicable to the sale of cigarettes or tobacco products, or any 60.28 rule promulgated by the commissioner, in furtherance of this 60.29 chapter.The commissioner may also revoke, cancel, or suspend60.30the license or licenses of any distributor or subjobber for60.31violation of sections 325D.30 to 325D.42.60.32 Sec. 4. Minnesota Statutes 2000, section 297F.13, 60.33 subdivision 4, is amended to read: 60.34 Subd. 4. [RETAILER AND SUBJOBBER TO PRESERVE PURCHASE 60.35 INVOICES.] Every retailer and subjobber shall procure itemized 60.36 invoices of all cigarettes or tobacco products purchased. 61.1 The retailer and subjobber shall preserve a legible copy of 61.2 each invoice for one year from the date of the invoice. The 61.3 retailer and subjobber shall preserve copies of the invoices at 61.4 each retail location or at a central location provided that the 61.5 invoice must be produced and made available at a retail location 61.6 within one hour when requested by the commissioner or duly 61.7 authorized agents and employees. Copies should be numbered and 61.8 kept in chronological order. 61.9 To determine whether the business is in compliance with the 61.10 provisions of this chapterand sections 325D.30 to 325D.42, at 61.11 any time during usual business hours, the commissioner, or duly 61.12 authorized agents and employees, may enter any place of business 61.13 of a retailer or subjobber without a search warrant and inspect 61.14 the premises, the records required to be kept under this 61.15 chapter, and the packages of cigarettes, tobacco products, and 61.16 vending devices contained on the premises. 61.17 Sec. 5. Minnesota Statutes 2000, section 325D.33, is 61.18 amended by adding a subdivision to read: 61.19 Subd. 2a. [COMMISSIONER.] "Commissioner" means the 61.20 commissioner of commerce or the commissioner's designated 61.21 representative. 61.22 Sec. 6. Minnesota Statutes 2000, section 325D.33, 61.23 subdivision 8, is amended to read: 61.24 Subd. 8. [PENALTIES.] (a) A retailer who sells cigarettes 61.25 for less than a legal retail price may be assessed a penalty in 61.26 the full amount of three times the difference between the actual 61.27 selling price and a legal price under sections 325D.30 to 61.28 325D.42. This penalty may be collected by the commissioner 61.29 under the authorities given the commissioner of revenue in 61.30chapterschapter 270and 297F, and the penalty shall bear 61.31 interest at the rate prescribed by section 270.75, subdivision 5. 61.32 (b) A wholesaler who sells cigarettes for less than a legal 61.33 price may be assessed a penalty in the full amount of three 61.34 times the difference between the actual selling price and the 61.35 legal price under sections 325D.30 to 325D.42. This penalty may 61.36 be collected by the commissioner under the authorities given the 62.1 commissioner of revenue inchapterschapter 270and 297F, and 62.2 the penalty shall bear interest at the rate prescribed by 62.3 section 270.75, subdivision 5. 62.4 (c) A retailer who engages in a plan, scheme, or device 62.5 with a wholesaler to purchase cigarettes at a price which the 62.6 retailer knows to be less than a legal price may be assessed a 62.7 penalty in the full amount of three times the difference between 62.8 the actual purchase price and the legal price under sections 62.9 325D.30 to 325D.42. A retailer that coerces or requires a 62.10 wholesaler to sell cigarettes at a price which the retailer 62.11 knows to be less than a legal price may be assessed a penalty in 62.12 the full amount of three times the difference between the actual 62.13 purchase price and the legal price. These penalties may be 62.14 collected by the commissioner under the authorities given the 62.15 commissioner of revenue inchapterschapter 270and 297F, and 62.16 the penalties shall bear interest at the rate prescribed by 62.17 section 270.75, subdivision 5. 62.18 For purposes of this subdivision, a retailer is presumed to 62.19 know that a purchase price is less than a legal price if any of 62.20 the following have been done: 62.21 (1) the commissioner has published the legal price in the 62.22 Minnesota State Register; 62.23 (2) the commissioner has provided written notice to the 62.24 retailer of the legal price; 62.25 (3) the commissioner has provided written notice to the 62.26 retailer that the retailer is purchasing cigarettes for less 62.27 than a legal price; 62.28 (4) the commissioner has issued a written order to the 62.29 retailer to cease and desist from purchases of cigarettes for 62.30 less than a legal price; or 62.31 (5) there is evidence that the retailer has knowledge of, 62.32 or has participated in, efforts to disguise or misrepresent the 62.33 actual purchase price as equal to or more than a legal price, 62.34 when it is actually less than a legal price. 62.35 In any proceeding arising under this subdivision, the 62.36 commissioner shall have the burden of providing by a reasonable 63.1 preponderance of the evidence that the facts necessary to 63.2 establish the presumption set forth in this section exist, or 63.3 that the retailer had knowledge that a purchase price was less 63.4 than the legal price. 63.5 (d) The commissioner may not assess penalties against any 63.6 wholesaler, retailer, or combination of wholesaler and retailer, 63.7 which are greater than three times the difference between the 63.8 actual price and the legal price under sections 325D.30 to 63.9 325D.42. 63.10 Sec. 7. Minnesota Statutes 2000, section 325D.405, is 63.11 amended to read: 63.12 325D.405 [INVESTIGATIONS.] 63.13 The commissioner or duly authorized agents may conduct 63.14 investigations to determine compliance with the provisions of 63.15 sections 325D.30 to 325D.42 and, in connection with such 63.16 investigations, the commissioner and duly authorized agents have 63.17 all the powers conferred upon the commissioner by section270.0663.18 45.027. 63.19 Sec. 8. Minnesota Statutes 2000, section 325D.415, is 63.20 amended to read: 63.21 325D.415 [CIGARETTE DISTRIBUTOR FEES.] 63.22 A cigarette distributor as defined in section 297F.01, 63.23 subdivision 4, shall pay to the commissioner an annual fee as 63.24 follows: 63.25 (1) a fee of $2,500 is due from those distributors whose 63.26 annual cigarette tax collections exceed $2,000,000; and 63.27 (2) a fee of $1,200 is due from those distributors whose 63.28 annual cigarette tax collections are $2,000,000 or less. 63.29 The annual fee must be paid by December 31 of each year. 63.30If the fee is not paid when due, the commissioner shall revoke63.31or refuse to issue or renew the license under chapter 297F.The 63.32 annual fee must be deposited into the general fund. 63.33 Sec. 9. [TRANSFER OF RESPONSIBILITIES.] 63.34 Minnesota Statutes, section 15.039, subdivisions 1 to 6 and 63.35 8, apply to the transfer of responsibilities made by this 63.36 article. 64.1 Sec. 10. [APPROPRIATION.] 64.2 $91,500 in fiscal year 2002 and $91,500 in fiscal year 2003 64.3 are appropriated from the general fund to the department of 64.4 commerce for the enforcement and administration of Minnesota 64.5 Statutes, sections 325D.30 to 325D.42. An equal amount will be 64.6 reduced from the general fund appropriation to the department of 64.7 revenue. 64.8 Sec. 11. [REPEALER.] 64.9 Minnesota Statutes 2000, section 325D.33, subdivision 5, is 64.10 repealed. 64.11 Sec. 12. [EFFECTIVE DATE.] 64.12 This article is effective July 1, 2001.