SF 1304

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/16/2021 09:57am

A bill for an act
relating to rural broadband; allowing existing easements held by rural electric
cooperatives to be used to provide broadband service; amending Minnesota Statutes
2020, section 308A.201, subdivision 12.

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

Section 1.

Minnesota Statutes 2020, section 308A.201, subdivision 12, is amended to
read:

Subd. 12.

Electric cooperative powers.

(a) An electric cooperative has the power and
authority to:

(1) make loans to its members;

(2) prerefund debt;

(3) obtain funds through negotiated financing or public sale;

(4) borrow money and issue its bonds, debentures, notes, or other evidence of
indebtedness;

(5) mortgage, pledge, or otherwise hypothecate its assets as may be necessary;

(6) invest its resources;

(7) deposit money in state and national banks and trust companies authorized to receive
deposits; and

(8) exercise all other powers and authorities granted to cooperatives.

(b) A cooperative organized to provide rural electric power may enter agreements and
contracts with other electric power cooperatives or with a cooperative constituted of electric
power cooperatives to share losses and risk of losses to their transmission and distribution
lines, transformers, substations, and related appurtenances from storm, sleet, hail, tornado,
cyclone, hurricane, or windstorm. An agreement or contract or a cooperative formed to
share losses under this paragraph is not subject to the laws of this state relating to insurance
and insurance companies.

new text begin (c) An electric cooperative, an affiliate of the cooperative formed to provide broadband,
or another entity pursuant to an agreement with the cooperative or the cooperative's affiliate
may use the cooperative, affiliate, or entity's existing or subsequently acquired electric
transmission or distribution easements for broadband infrastructure and to provide broadband
service, which may include an agreement to lease fiber capacity. To exercise rights granted
under this paragraph, the cooperative must provide to the property owner on which the
easement is located written notice that the cooperative intends to use the easement for
broadband purposes. The use of the easement for broadband services vests and runs with
the land beginning six months after notice is provided under paragraph (d), unless a court
action challenging the use of the easement for broadband purposes has been filed before
that time by the property owner as provided under paragraph (e). The cooperative must also
file evidence of the notice for recording with the county recorder.
new text end

new text begin (d) The cooperative's notice under paragraph (c) must be sent by first class mail to the
last known address of the owner of the property on which the easement is located or by
printed insertion in the property owner's utility bill. The notice must include the following:
new text end

new text begin (1) the name and mailing address of the cooperative;
new text end

new text begin (2) a narrative describing the nature and purpose of the intended easement use; and
new text end

new text begin (3) a description of any trenching or other underground work expected to result from
the intended use, including the anticipated time frame for the work.
new text end

new text begin (e) A property owner, within six months after receiving notice under paragraph (d), may
commence an action seeking to recover damages for an electric cooperative's use of an
electric transmission or distribution easement for broadband service purposes.
Notwithstanding any other law to the contrary, the procedures and substantive matters set
forth in this subdivision govern an action under this paragraph and are the exclusive means
to bring a claim for compensation with respect to a notice of intent to use a cooperative
transmission or distribution easement for broadband purposes. To commence an action
under this paragraph, the property owner must serve a complaint upon the electric cooperative
as in a civil action and file the complaint with the district court for the county in which the
easement is located. The complaint must state whether the property owner:
new text end

new text begin (1) is challenging the electric cooperative's right to use the easement for broadband
services or infrastructure as authorized under paragraph (c);
new text end

new text begin (2) is seeking damages as provided under paragraph (f); or
new text end

new text begin (3) both.
new text end

new text begin (f) If the property owner is seeking damages, the electric cooperative may, at any time
after answering the complaint:
new text end

new text begin (1) deposit with the court administrator an amount equal to the cooperative's estimate
of damages or one dollar if damages are estimated to be not more than nominal; and
new text end

new text begin (2) after making the deposit, use the electric transmission or service line easements for
broadband purposes, conditioned on an obligation to pay the amount of damages determined
by the court.
new text end

new text begin If the property owner is challenging the electric cooperative's right to use the easement for
broadband services or infrastructure as authorized under paragraph (c), after the electric
cooperative answers the complaint the district court must promptly hold a hearing on the
property owner's challenge. If the district court denies the property owner's challenge, the
electric cooperative may proceed to make a deposit and make use of the easement for
broadband service purposes, as provided under clause (2).
new text end

new text begin (g) In an action involving a property owner's claim for damages, the landowner has the
burden to prove the existence and amount of any net reduction in the fair market value of
the property, considering the existence, installation, construction, maintenance, modification,
operation, repair, replacement, or removal of broadband infrastructure in the easement, as
well as any benefit to the property from access to broadband service. Consequential or
special damages must not be awarded. Evidence of revenue, profits, fees, income, or similar
benefits to the electric cooperative, the cooperative's affiliate, or a third party is inadmissible.
Any fees or costs incurred as a result of an action under this subdivision must be paid by
the party that incurred the fees or costs.
new text end

new text begin (h) Nothing in this section limits in any way an electric cooperative's existing easement
rights, including but not limited to rights an electric cooperative has or may acquire to
transmit communications for electric system operations or otherwise.
new text end

new text begin (i) For purposes of this subdivision:
new text end

new text begin (1) "broadband service" means broadband infrastructure and any services provided over
the infrastructure that offer advanced telecommunications capability and Internet access;
and
new text end

new text begin (2) "broadband infrastructure" has the meaning given in section 116J.394.
new text end

new text begin (j) Placement of broadband infrastructure for use in providing broadband service under
paragraphs (c) to (i) of this subdivision, in any portion of an electric transmission or
distribution easement located in the public right-of-way, is subject to local government
permitting and right-of-way management authority under section 237.163, and the placement
shall be coordinated with the relevant local government unit to minimize potential future
relocations. The cooperative shall notify a local government unit prior to placing
infrastructure for broadband service in an easement that is in or adjacent to that local
government unit's public right-of-way.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end