1.1 	A bill for an act
1.2 	relating to energy; appropriating money to Department of Commerce and Public 
1.3 	Utilities Commission to finance activities and projects related to energy or 
1.4 	commerce; modifying provisions relating to assessments, audits, insurance and 
1.5 	insurers, public utilities, cooperative electric associations, and municipal power 
1.6 	agencies;amending Minnesota Statutes 2008, sections 45.027, subdivision 1; 
1.7 	60A.315, subdivision 6; 61A.02, subdivisions 2, 2a; 61A.072, subdivision 11; 
1.8 	70A.06, subdivision 2; 216B.62, subdivisions 3, 4, 5, by adding subdivisions; 
1.9 	237.295, subdivisions 2, 3, by adding a subdivision; repealing Minnesota Statutes 
1.10 	2008, section 60A.315, subdivisions 1, 2, 3, 4, 5.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.13 	The amounts shown in this section summarize direct appropriations, by fund, made 
1.14 	in this article.

1.15			2010
		2011
		Total
	
1.16	General
	$
	27,740,000
	$
	26,740,000
	$
	54,480,000
	
1.17	Petroleum Tank Cleanup
		1,084,000
		1,084,000
		2,168,000
	
1.18	Workers' Compensation
		751,000
		751,000
		1,502,000
	
1.19	Special Revenue
		300,000
		300,000
		600,000
	
1.20	Total
	$
	29,875,000
	$
	28,875,000
	$
	58,750,000

1.21	Sec. 2. ENERGY FINANCE APPROPRIATIONS.
 	
1.22 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.23 	agencies and for the purposes specified in this article. The appropriations are from the 
1.24 	general fund, or another named fund, and are available for the fiscal years indicated 
1.25 	for each purpose. The figures "2010" and "2011" used in this article mean that the 
1.26 	appropriations listed under them are available for the fiscal year ending June 30, 2010, or 
1.27 	June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal 
2.1 	year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal 
2.2 	year ending June 30, 2009, are effective the day following final enactment.

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2010
		2011

2.7	Sec. 3. DEPARTMENT OF COMMERCE

2.8	Subdivision 1.Total Appropriation
 	$
	24,442,000
	$
	23,442,000

2.9	Appropriations by Fund
	
2.10		2010
	2011
	
2.11	General
	22,307,000
	21,307,000
	
2.12	Petroleum Cleanup
	1,084,000
	1,084,000
	
2.13
2.14	Workers' 
Compensation
	751,000
	751,000
	
2.15	Special Revenue
	300,000
	300,000
	
2.16 	The amounts that may be spent for each 
2.17 	purpose are specified in the following 
2.18 	subdivisions.

2.19	Subd. 2.Financial Examinations
 		6,637,000
		6,637,000

2.20
2.21	Subd. 3.Petroleum Tank Release Cleanup 
Board
 		1,084,000
		1,084,000
	
2.22 	This appropriation is from the petroleum 
2.23 	tank release cleanup fund. 

2.24	Subd. 4.Administrative Services
 		4,300,000
		4,300,000

2.25	Subd. 5.Telecommunication
 		1,010,000
		1,010,000

2.26	Subd. 6.Market Assurance
 		7,121,000
		7,121,000

2.27	Appropriations by Fund
	
2.28	General
	6,370,000
	6,370,000
	
2.29
2.30	Workers' 
Compensation
	751,000
	751,000

2.31	Subd. 7.Office of Energy Security
 		3,990,000
		2,990,000

2.32
2.33	Subd. 8.Telecommunications Access 
Minnesota
 		300,000
		300,000
	
2.34 	$300,000 the first year and $300,000 
2.35 	the second year are for transfer to the 
3.1 	commissioner of human services to 
3.2 	supplement the ongoing operational expenses 
3.3 	of the Minnesota Commission Serving 
3.4 	Deaf and Hard-of-Hearing People. This 
3.5 	appropriation is from the telecommunication 
3.6 	access Minnesota fund, and is added to 
3.7 	the commission's base. This appropriation 
3.8 	consolidates, and is not in addition to, 
3.9 	appropriation language from Laws 2006, 
3.10 	chapter 282, article 11, section 4, and 
3.11 	Laws 2007, chapter 57, article 2, section 3, 
3.12 	subdivision 7.

3.13	Sec. 4. PUBLIC UTILITIES COMMISSION
 	$
	5,433,000
	$
	5,433,000

3.14 	Sec. 5. Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read:
3.15 		Subdivision 1.General powers. In connection with the duties and responsibilities 
3.16 	entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner 
3.17 	of commerce may:
3.18 	(1) make public or private investigations within or without this state as the 
3.19 	commissioner considers necessary to determine whether any person has violated or is 
3.20 	about to violate any law, rule, or order related to the duties and responsibilities entrusted 
3.21 	to the commissioner;
3.22 	(2) require or permit any person to file a statement in writing, under oath or otherwise 
3.23 	as the commissioner determines, as to all the facts and circumstances concerning the 
3.24 	matter being investigated;
3.25 	(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the 
3.26 	duties and responsibilities entrusted to the commissioner;
3.27 	(4) conduct investigations and hold hearings for the purpose of compiling 
3.28 	information related to the duties and responsibilities entrusted to the commissioner;
3.29 	(5) examine the books, accounts, records, and files of every licensee, and of every 
3.30 	person who is engaged in any activity regulated; the commissioner or a designated 
3.31 	representative shall have free access during normal business hours to the offices and 
3.32 	places of business of the person, and to all books, accounts, papers, records, files, safes, 
3.33 	and vaults maintained in the place of business;
4.1 	(6) publish information which is contained in any order issued by the commissioner; 
4.2 	and
4.3 	(7) require any person subject to duties and responsibilities entrusted to the 
4.4 	commissioner, to report all sales or transactions that are regulated. The reports must 
4.5 	be made within ten days after the commissioner has ordered the report. The report is 
4.6 	accessible only to the respondent and other governmental agencies unless otherwise 
4.7 	ordered by a court of competent jurisdiction.; and
4.8 	(8) assess a licensee the necessary expenses of the investigation performed by the 
4.9 	department when an investigation is made by order of the commissioner. The cost of the 
4.10 	investigation shall be determined by the commissioner and is based on the salary cost 
4.11 	of investigators or assistants and at an average rate per day or fraction thereof so as to 
4.12 	provide for the total cost of the investigations. All money collected must be deposited 
4.13 	into the general fund.

4.14 	Sec. 6. Minnesota Statutes 2008, section 60A.315, subdivision 6, is amended to read:
4.15 		Subd. 6.Audits; penalties. The commissioner is authorized to conduct audits 
4.16 	and investigations under section 45.027and this chapter to determine if the insurers are 
4.17 	complying with Minnesota law in the issuance of policies described under this section
4.18 	sections 61A.02, 61A.72, and 70A.06. If the policy filings contain provisions that are 
4.19 	inconsistent with or violate Minnesota law, the commissioner may take action against the 
4.20 	insurer under section 45.027. The commissioner shall assess the insurer for the costs of 
4.21 	the investigation performed by the department and shall deposit all such assessments into 
4.22 	the revolving fund established under section 60A.03.

4.23 	Sec. 7. Minnesota Statutes 2008, section 61A.02, subdivision 2, is amended to read:
4.24 		Subd. 2.Approval required. (a) Except as otherwise authorized pursuant to 
4.25 	subdivision 2a, no policy or certificate of life insurance or annuity contract, issued to an 
4.26 	individual, group, or multiple employer trust, nor any rider of any kind or description 
4.27 	which is made a part thereof shall be issued or delivered in this state, or be issued by a life 
4.28 	insurance company organized under the laws of this state, until the form of the same has 
4.29 	been approved by the commissioner. In making a determination under this section, the 
4.30 	commissioner may require the insurer to provide rates and advertising materials related to 
4.31 	policies or contracts, certificates, or similar evidence of coverage issued or delivered in 
4.32 	this state.
4.33 	(b) Subdivisions 1 to 5 apply to a policy, certificate of insurance, or similar evidence 
4.34 	of coverage issued to a Minnesota resident or issued to provide coverage to a Minnesota 
5.1 	resident. Subdivisions 1 to 5 do not apply to a certificate of insurance or similar evidence 
5.2 	of coverage that meets the conditions of section 61A.093, subdivision 2.
5.3 	(c) No policy or certificate of life insurance issued to an individual, group, or 
5.4 	multiple employer trust, nor any rider of any kind or description that is made a part 
5.5 	thereof shall be issued or delivered in this state, or be issued by a life insurance company 
5.6 	organized under the laws of this state, until the form of the same has been filed with the 
5.7 	commissioner. Subdivisions 2a to 5 do not apply to these policies, certificates, and riders.

5.8 	Sec. 8. Minnesota Statutes 2008, section 61A.02, subdivision 2a, is amended to read:
5.9 		Subd. 2a.Expedited procedure for life or annuity contracts; form and rate 
5.10 	filing reviews. (a) An insurer may file a life oran annuity contract, rates, or forms and all 
5.11 	related riders of any kind or description with the commissioner for a review under this 
5.12 	subdivision. Any review must be completed within 60 days of receipt of a completed 
5.13 	filing. The cost of any actuarial review must be paid by the insurer submitting the filing 
5.14 	under this subdivision.
5.15 	(b) If a filing has been disapproved and is resubmitted, the cover letter must note the 
5.16 	disapproval and any changes made since the earlier filing, with an explanation of why 
5.17 	the new filing should be approved. Resubmission of disapproved forms should, where 
5.18 	possible, be made within 90 days of disapproval.
5.19 	(c) The filer may request a hearing within ten days of receiving a final disapproval. 
5.20 	Within 20 days of the receipt of the request, the commissioner shall schedule a date 
5.21 	for the hearing, which must occur within 30 days of the scheduling. At least ten days' 
5.22 	written notice of the hearing must be given to all interested parties. All hearings must be 
5.23 	conducted in accordance with chapter 14.
5.24 	(d) The hearing officer may order a prehearing conference for the resolution or 
5.25 	simplification of issues, to be held no less than three days before the scheduled date of 
5.26 	a hearing.
5.27 	(e) All actuaries used by the commissioner to review filings submitted by insurers 
5.28 	pursuant to this subdivision, whether employed by the department or secured by contract, 
5.29 	must be members of the American Academy of Actuaries. The commissioner may 
5.30 	contract with actuaries to review filings submitted by insurers under this subdivision, 
5.31 	and shall assess the applicant for the costs of this review. Payments received by the 
5.32 	commissioner under this subdivision shall be deposited in the revolving fund established 
5.33 	under section 60A.03.
5.34 	(f) Except for the change in timing for the review of completed filings found in 
5.35 	paragraph (a) and the expedited hearing procedures found in paragraph (c), nothing in 
6.1 	this subdivision shall be construed as changing the statutory and regulatory standards for 
6.2 	approval or disapproval of filings.

6.3 	Sec. 9. Minnesota Statutes 2008, section 61A.072, subdivision 11, is amended to read:
6.4 		Subd. 11.Filing requirement. The filing and prior approval of forms containing an 
6.5 	accelerated benefit is required prior to issuance or delivery in this state.

6.6 	Sec. 10. Minnesota Statutes 2008, section 70A.06, subdivision 2, is amended to read:
6.7 		Subd. 2.Policy form filings. No policy form shall be delivered or issued for 
6.8 	delivery unless it has been filed with the commissioner and either (i) the commissioner 
6.9 	has approved it or (ii) 60 days have elapsed and the commissioner has not disapproved 
6.10 	it as misleading or violative of public policy, which period may be extended by the 
6.11 	commissioner for an additional period not to exceed 60 days. Every licensed insurer 
6.12 	and every rate service organization licensed under section 70A.14 shall file with the 
6.13 	commissioner all forms and all changes and amendments of forms made by it for use in 
6.14 	this state not later than their effective date. No forms contained in a filing shall become 
6.15 	effective unless they have been filed with the commissioner.

6.16 	Sec. 11. Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read:
6.17 		Subd. 3.Assessing all public utilities. The department and commission shall 
6.18 	quarterly, at least 30 days before the start of each quarter, estimate the total of their 
6.19 	expenditures in the performance of their duties relating to (1) public utilities under section 
6.20 	216A.085, sections 216A.085 and 216B.01 to 216B.67, other than amounts chargeable 
6.21 	to public utilities under subdivision 2 or, 6, and (2) alternative energy engineering 
6.22 	activity under section 216C.261 7, or 8. The remainder, except the amount assessed 
6.23 	against cooperatives and municipalities for alternative energy engineering activity under 
6.24 	subdivision 5, shall be assessed by the commission and department to the several public 
6.25 	utilities in proportion to their respective gross operating revenues from retail sales of gas 
6.26 	or electric service within the state during the last calendar year. The assessment shall be 
6.27 	paid into the state treasury within 30 days after the bill has been transmitted via mail, 
6.28 	personal delivery, or electronic service to the several public utilities, which shall constitute 
6.29 	notice of the assessment and demand of payment thereof. The total amount which may 
6.30 	be assessed to the public utilities, under authority of this subdivision, shall not exceed 
6.31 	one-sixth of one percent of the total gross operating revenues of the public utilities 
6.32 	during the calendar year from retail sales of gas or electric service within the state. The 
6.33 	assessment for the third quarter of each fiscal year shall be adjusted to compensate for the 
7.1 	amount by which actual expenditures by the commission and department for the preceding 
7.2 	fiscal year were more or less than the estimated expenditures previously assessed. 

7.3 	Sec. 12. Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read:
7.4 		Subd. 4.Objections. Within 30 days after the date of the transmittal of any bill as 
7.5 	provided by subdivisions subdivision  2 and, 3, 7, or 8, the public utility against which 
7.6 	the bill has been rendered may file with the commission objections setting out the 
7.7 	grounds upon which it is claimed the bill is excessive, erroneous, unlawful or invalid. 
7.8 	The commission shall within 60 days hold a hearing and issue an order in accordance 
7.9 	with its findings. The order shall be appealable in the same manner as other final orders 
7.10 	of the commission.

7.11 	Sec. 13. Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read:
7.12 		Subd. 5.Assessing cooperatives and municipals. The commission and department 
7.13 	may charge cooperative electric associations, generation and transmission cooperative 
7.14 	electric associations, municipal power agencies, and municipal electric utilities their 
7.15 	proportionate share of the expenses incurred in the review and disposition of resource 
7.16 	plans, adjudication of service area disputes, proceedings under section 216B.1691, 
7.17 	216B.2425, or 216B.243, and the costs incurred in the adjudication of complaints over 
7.18 	service standards, practices, and rates. Cooperative electric associations electing to 
7.19 	become subject to rate regulation by the commission pursuant to section 216B.026, 
7.20 	subdivision 4, are also subject to this section. Neither a cooperative electric association 
7.21 	nor a municipal electric utility is liable for costs and expenses in a calendar year in excess 
7.22 	of the limitation on costs that may be assessed against public utilities under subdivision 
7.23 	2. A cooperative electric association, generation and transmission cooperative electric 
7.24 	association, municipal power agency, or municipal electric utility may object to and appeal 
7.25 	bills of the commission and department as provided in subdivision 4.
7.26 	The department shall assess cooperatives and municipalities for the costs of 
7.27 	alternative energy engineering activities under section 216C.261. Each cooperative and 
7.28 	municipality shall be assessed in proportion that its gross operating revenues for the sale 
7.29 	of gas and electric service within the state for the last calendar year bears to the total of 
7.30 	those revenues for all public utilities, cooperatives, and municipalities.

7.31 	Sec. 14. Minnesota Statutes 2008, section 216B.62, is amended by adding a 
7.32 	subdivision to read:
8.1 		Subd. 7.Assessing all utilities. The department shall assess public utilities, 
8.2 	cooperative electric associations, and municipal utilities for the costs of activities under 
8.3 	chapter 216C. The department shall not assess for costs of grants, loans, or other aids or 
8.4 	for costs that can be recovered through other assessment authority. Each public utility, 
8.5 	cooperative, and municipal utility shall be assessed in the proportion that its gross 
8.6 	operating revenue for the sale of gas and electric service within the state for the last 
8.7 	calendar year bears to the total of those revenues for all public utilities, cooperatives, 
8.8 	and municipalities.

8.9 	Sec. 15. Minnesota Statutes 2008, section 216B.62, is amended by adding a 
8.10 	subdivision to read:
8.11 		Subd. 8.Audit investigation costs. The audit investigation account is created as a 
8.12 	separate account in the special revenue fund in the state treasury. If the commission, in a 
8.13 	proceeding upon its own motion, on complaint, or upon an application to it, determines 
8.14 	that it is necessary, in order to carry out its duties imposed under this chapter or chapter 
8.15 	216, 216A, 216E, 216F, or 216G, to conduct an investigation or audit of any public utility 
8.16 	operations, practices, or policies requiring specialized technical professional investigative 
8.17 	services for the inquiry, the commission may seek authority from the Department of 
8.18 	Management and Budget to incur costs reasonably attributable to the specialized services. 
8.19 	If approved by the department, the commission shall render separate bills to the public 
8.20 	utility for the costs incurred for the technical professional investigative services. The 
8.21 	bill constitutes notice of the assessment and demand of payment. The amount of a bill 
8.22 	assessed by the commission under this subdivision must be paid by the public utility into 
8.23 	the state treasury within 30 days from the date of assessment. Money received under this 
8.24 	subdivision shall be credited to the audit investigation account.

8.25 	Sec. 16. Minnesota Statutes 2008, section 237.295, subdivision 2, is amended to read:
8.26 		Subd. 2.Assessment of costs. The department and commission shall quarterly, at 
8.27 	least 30 days before the start of each quarter, estimate the total of their expenditures 
8.28 	in the performance of their duties relating to telephone companies, other than amounts 
8.29 	chargeable to telephone companies under subdivision 1, 5, or 6, or 7. The remainder 
8.30 	must be assessed by the department to the telephone companies operating in this state 
8.31 	in proportion to their respective gross jurisdictional operating revenues during the last 
8.32 	calendar year. The assessment must be paid into the state treasury within 30 days after the 
8.33 	bill has been transmitted via mail, personal delivery, or electronic service to the telephone 
8.34 	companies. The bill constitutes notice of the assessment and demand of payment. The 
9.1 	total amount that may be assessed to the telephone companies under this subdivision may 
9.2 	not exceed three-eighths of one percent of the total gross jurisdictional operating revenues 
9.3 	during the calendar year. The assessment for the third quarter of each fiscal year must be 
9.4 	adjusted to compensate for the amount by which actual expenditures by the commission 
9.5 	and department for the preceding fiscal year were more or less than the estimated 
9.6 	expenditures previously assessed. A telephone company with gross jurisdictional 
9.7 	operating revenues of less than $5,000 is exempt from assessments under this subdivision.

9.8 	Sec. 17. Minnesota Statutes 2008, section 237.295, subdivision 3, is amended to read:
9.9 		Subd. 3.Objection. Within 30 days after the date of the transmittal of any bill 
9.10 	as provided by subdivisions 1, 2, 5, and 6, or 7, the parties to the proceeding, against 
9.11 	which the bill has been assessed, may file with the commission objections setting out the 
9.12 	grounds upon which it is claimed the bill is excessive, erroneous, unlawful, or invalid. 
9.13 	The commission shall within 60 days issue an order in accordance with its findings. The 
9.14 	order is appealable in the same manner as other final orders of the commission.

9.15 	Sec. 18. Minnesota Statutes 2008, section 237.295, is amended by adding a subdivision 
9.16 	to read:
9.17 		Subd. 7.Audit investigation costs. The audit investigation account is created as 
9.18 	a separate account in the special revenue fund in the state treasury. If the commission, 
9.19 	in a proceeding upon its own motion, on complaint, or upon an application to it, 
9.20 	determines it is necessary, in order to carry out its duties imposed under this chapter or 
9.21 	chapter 216 or 216A, to conduct an investigation or audit of any telephone company 
9.22 	or telecommunications carrier's operations, practices, or policies requiring specialized 
9.23 	technical professional investigative services for the inquiry, the commission may seek 
9.24 	authority from the Department of Management and Budget to incur costs reasonably 
9.25 	attributable to the specialized services. The commission shall render separate bills to 
9.26 	telephone companies and telecommunications carriers for the costs of the technical 
9.27 	professional investigative services. The bill constitutes notice of the assessment and 
9.28 	demand of payment. The amount of a bill assessed by the commission under this 
9.29 	subdivision must be paid by the telephone company or telecommunications carrier into 
9.30 	the state treasury within 30 days from the date of assessment. Money received under this 
9.31 	subdivision shall be credited to the audit investigation account.

9.32 	Sec. 19.  REPEALER.
 10.1 	Minnesota Statutes 2008, section 60A.315, subdivisions 1, 2, 3, 4, and 5, are 
10.2 	repealed.