Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                         CHAPTER 162--H.F.No. 91
           An act relating to public utilities; providing for 
          rights of stockholders and directors of cooperative 
          electric associations; proposing new law coded in 
          Minnesota Statutes, chapter 216B. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [216B.027] [COOPERATIVE ELECTRIC ASSOCIATION 
STOCKHOLDER RIGHTS.] 
    Subdivision 1.  [INTENT.] It is the intent of this section 
to specify those rights which shall be extended to stockholders 
of cooperative electric associations.  The guarantee of these 
rights, as specified herein, is intended to further the active 
participation of stockholders in any and all matters pertaining 
to the prudent operation of their organization.  
    Subd. 2.  [SCOPE.] Cooperative associations organized under 
chapter 308 for the purpose of providing rural electrification 
at retail to ultimate consumers shall comply with the provisions 
of this section in addition to other applicable provisions of 
chapter 308 and other applicable state and federal laws.  
    Subd. 3.  [BUSINESS RECORDS.] The provisions of section 
302A.461 and any amendments or successor requirements to it 
shall apply to every wholesale or retail cooperative electric 
association.  The rights granted to wholesale and retail 
electric cooperative stockholders in this section shall apply 
also to the spouse of the stockholder.  In addition to the 
requirements of section 302A.461, a wholesale or retail electric 
cooperative shall maintain records of all proceedings of 
meetings of stockholders and directors during the previous 
three-year period including the vote of each director on roll 
call votes.  Roll call votes are required on actions which 
directly establish service charge and rate schedules.  Roll call 
voting is also required on any matter upon the request of one or 
more directors.  Every duly elected director of a retail 
cooperative electric association shall have the right to inspect 
under section 302A.461, in person and at any reasonable time, 
the business records required by this subdivision and maintained 
by the wholesale cooperative electric association from which it 
purchases the majority of its electric requirements.  
    Subd. 4.  [OPEN MEETINGS.] Meetings of the board of 
directors of any retail cooperative electric association must be 
open to the stockholders of the cooperative and the 
stockholders' spouses.  Stockholders must be given notice of all 
regularly scheduled meetings except those of an emergency 
nature.  Duly elected directors of retail cooperative 
associations must be given notice, through their retail 
cooperative associations, of all meetings of the board of 
directors of the wholesale cooperative association, except those 
of an emergency nature, from which the retail cooperative 
purchases the majority of its electric requirements.  Portions 
of meetings relating to labor negotiations, current litigation, 
personnel matters, and nonpayment of customer accounts are 
excluded from the provisions of this subdivision.  
    Subd. 5.  [PETITIONS; VOTING.] Notwithstanding the 
provisions of section 308.09, upon receipt of a written petition 
concerning governance matters signed by at least 500 
stockholders or five percent of the stockholders, whichever is 
less, of a retail cooperative electric association, the matter 
in the petition must be presented to the stockholders of the 
cooperative for a vote at the next annual meeting.  Petitions 
must be received by the cooperative electric association 60 days 
prior to the scheduled annual meeting.  For purposes of this 
section, "governance matters" means matters properly contained 
in the articles of incorporation or bylaws by adopting, 
amending, or repealing bylaws or the articles of incorporation.  
    Subd. 6.  [EQUAL TIME; PETITIONERS.] Whenever the directors 
of a retail cooperative electric association provide information 
to stockholders to influence their vote on a matter to be 
decided by a vote of the stockholders pursuant to a successful 
petition submitted under the provisions of subdivision 5 or 
section 216B.026, subdivision 4, the directors shall provide the 
organizers of the petition or person presenting the petition the 
opportunity to include their position on the matter to the 
stockholders in a substantially similar mode and range of 
distribution.  The organizers of the petition shall pay the 
costs of such inclusion.  
    Subd. 7.  [OPTIONAL REFERENDUM.] No cooperative shall be 
bound by the provisions of this section unless adoption has been 
approved at referendum using the petition and election 
procedures in section 216B.026.  Within 60 days of the effective 
date of this section, the board of directors of each cooperative 
electric association shall notify the stockholders of the 
provisions of this section and shall explain the process for 
ratification by petition and election as provided in this 
subdivision. 
    Sec. 2.  [EFFECTIVE DATE.] 
     Section 1 is effective the day following final enactment. 
    Approved May 18, 1983