Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 487-S.F.No. 1048 
                  An act relating to utilities; regulating ex parte 
                  communications with commissioners; amending Minnesota 
                  Statutes 1998, section 216A.037. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 216A.037, is 
        amended to read: 
           216A.037 [RULES; EX PARTE COMMUNICATIONS; CODE OF CONDUCT; 
        RULES.] 
           Subdivision 1.  [EX PARTE COMMUNICATIONS PROHIBITIONS; 
        RULES.] (a) The commission shall adopt rules under chapter 14 
        prescribing permissible and impermissible ex parte 
        communications.  The ex parte rules may prohibit only ex parte 
        communications by commission members with a party, directly or 
        indirectly, between a commissioner and a participant under the 
        commission's rules of practice and procedure relating to: 
           (1) a material issue during a pending contested case 
        proceeding; 
           (2) a material issue in a rulemaking proceeding after the 
        beginning of commission deliberations; 
           (3) a material issue in a disputed formal petition; and 
           (4) any other communication impermissible by law. 
           (b) The commission may apply ex parte prohibitions, 
        prospectively and after notice to affected parties, to other 
        commission proceedings as the commission deems necessary.  
           (c) A contested case is pending from the time the 
        commission refers the matter to the office of administrative 
        hearings until the commission has issued its final order, and 
        the time to petition for reconsideration has expired or the 
        commission has issued an order finally disposing an application 
        for reconsideration, whichever is later. 
           Subd. 2.  [CONFLICT-OF-INTEREST COMMUNICATIONS PROHIBITED.] 
        A commissioner shall not communicate, directly or indirectly, 
        with a person or entity who is a party to a pending proceeding 
        before the commission regarding past or future benefits or 
        compensation to be received from that person or entity.  The 
        commission may dismiss a proceeding if an applicant, petitioner, 
        or complainant violates this subdivision. 
           Subd. 3.  [CODE OF CONDUCT RULES.] Except as limited by 
        subdivision 1, the commission shall adopt rules prescribing a 
        code of conduct for commissioners and employees of the 
        commission.  The code of conduct must include standards to 
        preserve the quasi-judicial function of the commission. 
           Subd. 4.  [COMPLAINT PROCEDURE; HEARING; SANCTIONS.] (a) 
        Any person seeking sanctions for alleged violations of the rules 
        adopted under this section may file a complaint with the 
        commission. 
           (b) A complaint seeking sanctions must include the 
        following information:  the name and address of the complainant; 
        the name and address of complainant's counsel, if any; the name 
        and address of each person alleged to have violated the ex parte 
        prohibition (respondents); the name and address of each 
        respondent's counsel, if known; the facts constituting the 
        alleged violation; and the sanctions sought by the complainant. 
           (c) A complaint filed under this section must be filed with 
        the commission and mailed to each respondent, the department, 
        the office of the attorney general, and all persons on the 
        commission's service list for the proceeding. 
           (d) Within seven days of service of the complaint, a 
        respondent shall file an answer with the commission and serve it 
        on the complainant, the department, the office of the attorney 
        general, and all persons on the commission's service list for 
        the proceeding. 
           (e) The commission shall refer the complaint and any reply 
        to the office of administrative hearings. 
           (f) The administrative law judge assigned to the ex parte 
        complaint proceeding by the office of administrative hearings 
        shall conduct a hearing investigation and shall issue a report 
        within 30 days after the matter is referred.  If the 
        administrative law judge determines that the report cannot be 
        properly completed within that time period, the judge shall 
        report that fact to the commission within the 30-day period and 
        shall file a final report within a reasonable time thereafter, 
        no later than 60 days after the referral to the office of 
        administrative hearings. 
           (g) The report of the administrative law judge shall 
        describe the relevant facts of the case and shall set forth the 
        judge's findings as to whether ex parte violations occurred.  
        The findings and decisions of the judge as to whether ex parte 
        violations have occurred are binding on the commission.  The 
        judge shall also discuss and make recommendations regarding the 
        imposition of sanctions in accordance with paragraph (h).  The 
        judge shall include in the report a discussion of the recusal of 
        any commissioner or the removal of decision-making personnel 
        from this case. 
           (h) In the report under paragraph (g), the administrative 
        law judge may only recommend that the commission impose one of 
        the following sanctions if the judge finds that the condition 
        specified for the sanction is met: 
           (1) dismiss the proceeding if the prohibited ex parte 
        communication has so prejudiced the proceeding that the 
        commission cannot consider it impartially; 
           (2) issue an adverse ruling on a pending issue that is the 
        subject of the prohibited ex parte communication if other 
        parties are prejudiced by the prohibited ex parte communication; 
           (3) strike evidence or pleadings if the evidence or 
        pleadings are tainted by the prohibited ex parte communication; 
        or 
           (4) issue a public statement of censure, if the prohibited 
        ex parte communication is determined to be part of a continuing 
        pattern of improper ex parte communication or if the prohibited 
        ex parte violation consists of a single prohibited communication 
        and mitigating circumstances exist that: 
           (i) negate the need for a more severe sanction; 
           (ii) do not prejudice the proceeding to the extent that the 
        commission is unable to consider it impartially; 
           (iii) do not prejudice other parties; or 
           (iv) do not taint the evidence or pleadings. 
           (i) If the administrative law judge finds the complainant's 
        allegation of an ex parte violation was interposed for any 
        improper purpose, such as to harass or cause unnecessary delay 
        or needless increase in the cost of the proceeding, the judge 
        may recommend that the commission issue an appropriate sanction 
        against the complainant. 
           Presented to the governor May 11, 2000 
           Signed by the governor May 15, 2000, 10:46 a.m.