Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 292-H.F.No. 3421 
                  An act relating to utilities; regulating an electric 
                  cooperative's election to be regulated; amending 
                  Minnesota Statutes 1998, section 216B.026, 
                  subdivisions 1 and 4. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 216B.026, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELECTION.] A cooperative electric 
        association may elect to become subject to rate regulation by 
        the commission pursuant to sections 216B.03 to 216B.23.  The 
        election shall be approved by a majority of members or 
        stockholders voting by mail ballot initiated by petition of not 
        less than five percent of the members or stockholders of the 
        association, as determined by membership figures submitted by 
        the association to the rural electric administration for the 
        month in which the petition was submitted.  For a cooperative 
        electric association that is the product of a merger or 
        consolidation of three or more associations between December 30, 
        1996, and January 1, 2001, the number of members or stockholders 
        necessary to initiate the petition shall be no less than one 
        percent of the members or stockholders of the association.  
           Sec. 2.  Minnesota Statutes 1998, section 216B.026, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ELECTION PROCEDURE; EFFECT.] If the department 
        determines that the petition meets the five percent 
        requirement of subdivision 1, a balloting of members on the 
        question of regulation of electric rates by the commission shall 
        be supervised by the department.  The ballot to be used for the 
        election shall be approved by the board of directors of the 
        association and the department.  In the event of a dispute on 
        balloting procedures, the dispute shall be resolved through 
        informal proceedings before the commission after notice to all 
        parties.  The association shall mail ballots to the 
        association's members who shall return the ballots to the 
        department.  The department shall keep the ballots sealed until 
        a date agreed upon by the department and the board of 
        directors.  On this date, representatives of the department and 
        the association shall count the ballots.  If a majority of the 
        association's members or spouses who vote, elect to become 
        subject to rate regulation by the commission, the election shall 
        be effective 30 days after certified copies of the resolutions 
        approving the election are filed with the commission.  These 
        provisions also apply to associations that wish to be 
        deregulated.  Any cooperative that is regulated by the 
        commission, pursuant to sections 216B.03 to 216B.23 may follow 
        the procedures set forth above.  Any association subject to 
        regulation of rates by the commission shall be exempt from the 
        provisions of sections 216B.48, 216B.49, 216B.50, and 216B.51. 
           Sec. 3.  Minnesota Statutes 1998, section 216B.026, is amended by 
        adding a subdivision to read: 
           Subd. 5.  [MEMBER DUE PROCESS.] Section 
        216B.027, granting rights to 
        stockholders, applies to the exercise of stockholders' rights 
        regardless of whether a referendum has been held as required by 
        section 216B.027, subdivision 7.  
        Notwithstanding section 216B.027, 
        subdivision 6, a cooperative shall pay the costs of including 
        stockholders' positions on issues as provided under section 216B.027, 
        subdivision 6.  This subdivision applies 
        only to elections that require no less than one percent of 
        members to initiate pursuant to subdivision 1. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor March 24, 2000 
           Signed by the governor March 28, 2000, 2:35 p.m.