1.1                          A bill for an act 
  1.2             relating to utilities; requiring at least two members 
  1.3             of the public utilities commission to be from outside 
  1.4             the metropolitan area; requiring utility regulatory 
  1.5             review and report; amending Minnesota Statutes 2002, 
  1.6             section 216A.03, subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 216A.03, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [MEMBERS.] The public utilities commission 
  1.11  shall consist of five members.  The terms of members shall be 
  1.12  six years and until their successors have been appointed and 
  1.13  qualified.  Each commissioner shall be appointed by the governor 
  1.14  by and with the advice and consent of the senate.  Not more than 
  1.15  three commissioners shall belong to the same political party.  
  1.16  At least one commissioner two commissioners must have been be 
  1.17  domiciled at the time of appointment outside the seven-county 
  1.18  metropolitan area.  Of these two commissioners, at least one 
  1.19  must be domiciled outside a city of the first or second class, 
  1.20  as defined in section 410.01, at the time of initial 
  1.21  appointment.  If the membership of the commission after July 31, 
  1.22  1986 August 1, 2003, does not consist of at least one member two 
  1.23  members domiciled at the time of appointment outside the 
  1.24  seven-county metropolitan area, the membership shall conform to 
  1.25  this requirement following normal attrition of the present 
  1.26  commissioners.  The governor when selecting commissioners shall 
  2.1   give consideration to persons learned in the law or persons who 
  2.2   have engaged in the profession of engineering, public 
  2.3   accounting, property and utility valuation, finance, physical or 
  2.4   natural sciences, production agriculture, or natural resources 
  2.5   as well as being representative of the general public. 
  2.6      For purposes of this subdivision, "seven-county 
  2.7   metropolitan area" means Anoka, Carver, Dakota, Hennepin, 
  2.8   Ramsey, Scott, and Washington counties. 
  2.9      Sec. 2.  [UTILITY REGULATORY REVIEW; RURAL CONCERNS.] 
  2.10     (a) The chair of the public utilities commission and the 
  2.11  commissioner of commerce shall jointly review the organizational 
  2.12  structure and regulatory procedures by which energy and 
  2.13  telecommunications service providers are regulated by the state. 
  2.14  By January 15, 2004, the chair and the commissioner shall issue 
  2.15  a report on that review to the chairs of the house and senate 
  2.16  committees with jurisdiction over utility regulation, and shall 
  2.17  include recommendations for executive and legislative action to 
  2.18  ensure the state has the most representative, cost-effective, 
  2.19  and efficient utility regulatory system possible. 
  2.20     (b) A primary focus of this review must be to consider and 
  2.21  make recommendations for actions that could be taken to ensure 
  2.22  the utility regulatory structure and process takes into account 
  2.23  the issues and concerns of rural and center city service 
  2.24  providers, residents, and businesses.  Items for consideration 
  2.25  must include: 
  2.26     (1) requiring the commission to hold hearings in rural 
  2.27  Minnesota, both on a regular basis and when an issue of special 
  2.28  concern to rural Minnesota is before the commission; and 
  2.29     (2) the establishment of a screening process for applicants 
  2.30  for the public utilities commission to demonstrate their 
  2.31  understanding and experience with regard to rural and center 
  2.32  city utility service issues. 
  2.33     Sec. 3.  [EFFECTIVE DATE.] 
  2.34     Section 1 is effective June 30, 2004.  Section 2 is 
  2.35  effective the day following final enactment.