1.1                          A bill for an act
  1.2             relating to utilities; authorizing cities to control 
  1.3             the use of public rights-of-way for providing utility 
  1.4             services; authorizing permits and fees; requiring 
  1.5             rules; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 237. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [237.162] [RIGHTS-OF-WAY FOR UTILITIES; 
  1.9   DEFINITIONS.] 
  1.10     Subdivision 1.  [SCOPE.] The terms used in sections 237.162 
  1.11  to 237.164 have the meanings given them in this section. 
  1.12     Subd. 2.  [ADMINISTRATIVE COSTS.] "Administrative costs" 
  1.13  means the direct and indirect costs borne by a city to process 
  1.14  and check applications for excavation or obstruction of city 
  1.15  rights-of-way; issue permits; inspect job sites; create, 
  1.16  maintain, and update systems for mapping the use of city 
  1.17  rights-of-way; inspect restoration projects; and determine 
  1.18  adequacy of right-of-way restoration and other administrative 
  1.19  costs incurred by the city under sections 237.163 and 237.164. 
  1.20     Subd. 3.  [CITY.] "City" means a statutory or home rule 
  1.21  charter city. 
  1.22     Subd. 4.  [CITY RIGHT-OF-WAY.] "City right-of-way" means 
  1.23  the surface space above and below real property owned by or 
  1.24  under the control of a city, or in which the city has an 
  1.25  interest in law or equity.  It includes an avenue, street, 
  1.26  boulevard, road, highway, expressway, freeway, lane, portage, 
  2.1   alley, cartway, court, parkway, bikeway, bicycle lane, bicycle 
  2.2   route, bicycle path, river, tunnel, viaduct, bridge, sidewalk, 
  2.3   park, skyway, skyway bridge, pedestrian bridge, pedestrian 
  2.4   walkway, recreational trail, or any other similar place, area, 
  2.5   or real property, however named. 
  2.6      Subd. 5.  [DEGRADATION COSTS.] "Degradation costs" means 
  2.7   the costs caused by the accelerated depreciation of a city 
  2.8   right-of-way caused by excavation in or disturbance of the 
  2.9   right-of-way, resulting in the need to reconstruct the 
  2.10  right-of-way earlier than would be required if the excavation 
  2.11  did not occur. 
  2.12     Subd. 6.  [EXCAVATE.] "Excavate" means to dig into or in 
  2.13  any way remove, physically disturb, or penetrate a part of a 
  2.14  city right-of-way. 
  2.15     Subd. 7.  [EXCAVATION PERMIT.] "Excavation permit" means a 
  2.16  permit that allows the holder to excavate that part of a city 
  2.17  right-of-way described in the permit and to hinder free and open 
  2.18  passage over the specified portion of the right-of-way to the 
  2.19  extent and for the duration specified in the permit. 
  2.20     Subd. 8.  [OBSTRUCT.] "Obstruct" means to place a tangible 
  2.21  object in a city right-of-way so as to hinder free and open 
  2.22  passage over that or any part of the right-of-way. 
  2.23     Subd. 9.  [OBSTRUCTION PERMIT.] "Obstruction permit" means 
  2.24  a permit that allows the holder to hinder free and open passage 
  2.25  over the specified portion of a city right-of-way described in 
  2.26  the permit to the extent and for the duration specified in the 
  2.27  permit. 
  2.28     Subd. 10.  [PERFORMANCE BOND.] "Performance bond" means a 
  2.29  bond posted to ensure the availability of sufficient funds to 
  2.30  restore a city right-of-way if a holder of an excavation permit 
  2.31  fails to return the right-of-way to its original condition. 
  2.32     Subd. 11.  [REMOVAL BOND.] "Removal bond" means a bond 
  2.33  posted to ensure the availability of sufficient funds to remove 
  2.34  the equipment of a person who has placed equipment on or in a 
  2.35  city right-of-way upon its abandonment or disuse, or to 
  2.36  discontinue the person's use or occupation of the right-of-way. 
  3.1      Subd. 12.  [RESTORATION.] "Restoration" means the process 
  3.2   by which an excavated or obstructed city right-of-way is 
  3.3   returned to a condition that, in the opinion of the city, 
  3.4   approximates its condition before the excavation or obstruction. 
  3.5      Subd. 13.  [RIGHT-OF-WAY PERMIT.] "Right-of-way permit" 
  3.6   means a use, excavation, or obstruction permit. 
  3.7      Subd. 14.  [USE PERMIT.] "Use permit" means a permit that 
  3.8   allows the holder to use and occupy a city right-of-way, or to 
  3.9   use equipment located in a city right-of-way, for the purpose of 
  3.10  operating the holder's business. 
  3.11     Subd. 15.  [UTILITY SERVICE.] "Utility service" means 
  3.12  telegraph, telephone, telecommunications, fiberoptic 
  3.13  communications, cable communications, and fire and alarm 
  3.14  communications. 
  3.15     Sec. 2.  [237.163] [RIGHTS-OF-WAY FOR UTILITY SERVICES; 
  3.16  USE, EXCAVATION, AND OBSTRUCTION.] 
  3.17     Subdivision 1.  [PERMITS.] (a) A city may, by ordinance, 
  3.18  require a person using, occupying, or seeking to use or occupy a 
  3.19  city right-of-way for the purpose of providing utility services 
  3.20  to register with the city and obtain a use permit to do so. 
  3.21     (b) A city may, by ordinance, require a person seeking to 
  3.22  excavate or obstruct a city right-of-way for the purpose of 
  3.23  providing utility services to obtain an excavation or 
  3.24  obstruction permit to do so. 
  3.25     Subd. 2.  [FEES.] (a) A city may charge a permit fee for a 
  3.26  use permit that is calculated to recoup the city's 
  3.27  administrative costs caused by the use of a city right-of-way, 
  3.28  but the permit fee may not be greater than $....... per square 
  3.29  foot per city resident per month of use. 
  3.30     (b) A city may charge a permit fee for an excavation or 
  3.31  obstruction permit that is calculated to recoup the city's 
  3.32  administrative and degradation costs caused by the excavation or 
  3.33  obstruction of a city right-of-way, but the permit fee may not 
  3.34  be greater than $....... per square foot per city resident per 
  3.35  month of excavation, obstruction, and restoration. 
  3.36     (c) A city may not recoup other costs associated with the 
  4.1   use, occupation, excavation, or obstruction of a city 
  4.2   right-of-way, or charge any other fee for the provision of 
  4.3   </u>
  4.4   utility services unless specifically authorized to do so by 
  4.5   state or federal law. 
  4.6      Subd. 3.  [PERMIT DENIAL OR REVOCATION.] (a) A city shall 
  4.7   deny an application for a right-of-way permit if the applicant 
  4.8   does not comply with a specific provision contained in this 
  4.9   section or section 237.164. 
  4.10     (b) A city may deny an application for a right-of-way 
  4.11  permit if the city determines that the denial is necessary to 
  4.12  protect the health, safety, and welfare; to prevent interference 
  4.13  with the safety and convenience of ordinary travel over the 
  4.14  right-of-way; or when necessary to protect the right-of-way and 
  4.15  its users. 
  4.16     (c) A city may revoke a right-of-way permit, with or 
  4.17  without fee refund, in the event of a substantial breach of the 
  4.18  terms and conditions of statute, ordinance, rule, or regulation, 
  4.19  or any condition of the permit.  A substantial breach by a 
  4.20  permit holder includes, but is not limited to, the following: 
  4.21     (1) a violation of any material provision of the permit; 
  4.22     (2) an evasion or attempt to evade any material provision 
  4.23  of the permit, or the perpetration or attempt to perpetrate any 
  4.24  fraud or deceit upon the city or its citizens; 
  4.25     (3) any material misrepresentation of fact in the permit 
  4.26  application; 
  4.27     (4) a failure to maintain required bonds or insurance; 
  4.28     (5) a failure to complete work in a timely manner; or 
  4.29     (6) a failure to correct, in a timely manner, work that 
  4.30  does not conform to applicable standards, conditions, or codes, 
  4.31  upon inspection and notification by the city of the faulty 
  4.32  condition. 
  4.33     Subd. 4.  [REMOVAL BOND.] A city may require the posting of 
  4.34  a removal bond as a condition of receiving a right-of-way 
  4.35  permit.  The removal bond shall be in an amount sufficient to 
  4.36  recover 25 percent of the cost of removing the equipment of the 
  4.37  permittee located under the surface of a city right-of-way and 
  5.1   restoring the right-of-way thereafter, or in a lesser amount as 
  5.2   may be determined by the city, taking into account the amount of 
  5.3   equipment in the right-of-way, the location and method of 
  5.4   installation of the equipment, and the conflict or interference 
  5.5   of the equipment with the equipment of other persons.  The 
  5.6   surety on the removal bond must be released upon the removal of 
  5.7   the permittee's equipment. 
  5.8      Subd. 5.  [RESTORATION.] (a) Restoration of a city 
  5.9   right-of-way must be completed within the dates specified in the 
  5.10  excavation permit or obstruction permit.  The permittee must 
  5.11  ensure that the general area of the work and the surrounding 
  5.12  areas, including the pavement and its foundations, is restored 
  5.13  to the same condition that existed before the commencement of 
  5.14  the work.  For 12 months after the restoration, the permittee 
  5.15  must inspect the area of the work and use reasonable care to 
  5.16  maintain the restored condition of the right-of-way. 
  5.17     (b) The city may require the permittee to post a 
  5.18  performance bond sufficient to cover the cost of restoring the 
  5.19  right-of-way.  If the city determines that the right-of-way has 
  5.20  been properly restored, the surety on the performance bond must 
  5.21  be released.  The city shall make this determination within 12 
  5.22  months after the restoration. 
  5.23     Sec. 3.  [237.164] [RIGHTS-OF-WAY FOR UTILITY SERVICES; 
  5.24  REGISTRATION INFORMATION.] 
  5.25     As a condition of registering for and obtaining a use 
  5.26  permit under section 237.163, a city may require the person 
  5.27  applying for the permit to provide the city with the following 
  5.28  information: 
  5.29     (1) the applicant's name, Gopher One-Call registration 
  5.30  number, address, and telephone and facsimile numbers; 
  5.31     (2) the name, address, and telephone and facsimile numbers 
  5.32  of the person's local representative; 
  5.33     (3) proof of adequate insurance, as determined by the city; 
  5.34     (4) an adequate construction and maintenance plan, as 
  5.35  determined by the city; 
  5.36     (5) adequate mapping information, as determined by the 
  6.1   city, of all equipment that the person owns or over which it has 
  6.2   control and which is located in a city right-of-way; and 
  6.3      (6) other information deemed reasonably necessary by the 
  6.4   city for the efficient administration of the city rights-of-way. 
  6.5      A city may require the person applying for a use permit to 
  6.6   periodically update the information specified in this section. 
  6.7      Sec. 4.  [237.165] [UNIFORM STATEWIDE STANDARDS.] 
  6.8      (a) By July 1, 1998, the public utilities commission shall 
  6.9   adopt uniform statewide standards and rules to ensure that the 
  6.10  intent and policy of sections 237.162 to 237.164 will be 
  6.11  accomplished. 
  6.12     (b) In prescribing rules, the commission shall seek to 
  6.13  reduce the administrative burdens on subscribers, local 
  6.14  authorities, and any person required to have a permit and to 
  6.15  standardize the permitting procedure to ensure uniformity 
  6.16  throughout the state so that the process will not be unduly 
  6.17  burdensome or unduly hinder the provision of utility services in 
  6.18  Minnesota. 
  6.19     (c) At a minimum, rules developed by the commission must 
  6.20  include the following, which must be enforced by the local 
  6.21  authorities: 
  6.22     (1) statewide minimum standards of universality and 
  6.23  interconnectivity that, wherever possible, must provide for the 
  6.24  delivery of utility services beyond the boundaries of local 
  6.25  authorities to ensure public convenience is met; 
  6.26     (2) a description of the permit procedures and 
  6.27  requirements; 
  6.28     (3) interconnection requirements to attain interconnection 
  6.29  between persons providing utility services, where possible, 
  6.30  within the jurisdictions of local authorities; 
  6.31     (4) provisions to ensure that all providers of similar 
  6.32  utility services are subject to the similar requirements 
  6.33  regarding use of city rights-of-way; 
  6.34     (5) uniform construction and safety standards ensuring that 
  6.35  local authorities retain control over the use of equipment and 
  6.36  facilities located on or in public property and public 
  7.1   rights-of-way; 
  7.2      (6) uniform standards that will reduce duplication of 
  7.3   equipment and facilities located on public property or in public 
  7.4   rights-of-way that are necessary for constructing, operating, 
  7.5   maintaining, offering, or delivering utility services; and 
  7.6      (7) procedures for the expeditious resolutions of disputes 
  7.7   between permittees and local authorities, with appeal to the 
  7.8   commission.