1.1                          A bill for an act 
  1.2             relating to transportation; enacting the Minnesota 
  1.3             Regulated Public Transit Utilities Act; providing for 
  1.4             regulation of transit services; requiring legislative 
  1.5             reports; proposing coding for new law as Minnesota 
  1.6             Statutes, chapter 216E.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8                  REGULATED PUBLIC TRANSIT UTILITIES 
  1.9      Section 1.  [216E.01] [LEGISLATIVE FINDINGS; PUBLIC 
  1.10  POLICY.] 
  1.11     It is hereby declared to be in the public interest that 
  1.12  persons be given the opportunity to become regulated public 
  1.13  transit utilities, as defined in section 216E.02, and that these 
  1.14  transit utilities be regulated in order to: 
  1.15     (1) encourage and support the marketplace development and 
  1.16  operation of coordinated, cost-effective, and competitive 
  1.17  multimodal transit services and infrastructure; 
  1.18     (2) eliminate or avoid unnecessary duplication of transit 
  1.19  utility facilities and services that increase costs of service 
  1.20  to the customer and taxpayer; 
  1.21     (3) ensure safe, adequate, reliable, economical, and 
  1.22  efficient transit services to the public at reasonable and 
  1.23  competitive rates, consistent with the financial and economic 
  1.24  requirements of transit utilities and their need to construct 
  1.25  facilities to provide the service; and 
  1.26     (4) minimize and prevent disputes between transit utilities 
  2.1   and between transit utilities and other transit service 
  2.2   providers that may result in inconvenience or diminish 
  2.3   efficiency in service to consumers. 
  2.4      Sec. 2.  [216E.02] [DEFINITIONS.] 
  2.5      Subdivision 1.  [SCOPE.] The terms used in this chapter 
  2.6   have the meanings given them in this section. 
  2.7      Subd. 2.  [COMMISSION.] "Commission" means the public 
  2.8   utilities commission. 
  2.9      Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
  2.10  commissioner of transportation. 
  2.11     Subd. 4.  [DEPARTMENT.] "Department" means the department 
  2.12  of transportation. 
  2.13     Subd. 5.  [EXCLUSIVE SERVICE AREA.] "Exclusive service 
  2.14  area" means the geographical area or corridor in which the 
  2.15  boundaries are established as provided in section 216E.04, free 
  2.16  from direct competition from other similar modes of transit 
  2.17  services that are publicly subsidized. 
  2.18     Subd. 6.  [PERSON.] "Person" means a natural person, a 
  2.19  governmental unit or other political subdivision, or any other 
  2.20  legal or commercial entity, however organized. 
  2.21     Subd. 7.  [PERSONAL RAPID TRANSIT.] "Personal rapid transit"
  2.22  is a transit system consisting of elevated guideways that allow 
  2.23  automated electrically driven vehicles to carry individuals 
  2.24  nonstop from any station on the system to any other station on 
  2.25  the system. 
  2.26     Subd. 8.  [REGULATED PUBLIC TRANSIT UTILITY; TRANSIT 
  2.27  UTILITY.] "Regulated public transit utility" or "transit 
  2.28  utility" means a person operating, maintaining, or controlling 
  2.29  in this state equipment or facilities for furnishing personal 
  2.30  rapid transit service, or other transit service, to or for the 
  2.31  public pursuant to this chapter.  
  2.32     Subd. 9.  [SERVICE.] "Service" means the provision of 
  2.33  transit service, and services attendant thereto. 
  2.34     Subd. 10.  [TRANSIT; TRANSIT SERVICE.] "Transit" or 
  2.35  "transit service" means public transit as defined in section 
  2.36  174.22, subdivision 7, except that "transit" or "transit service"
  3.1   includes urbanized area service, but does not include 
  3.2   paratransit. 
  3.3      Sec. 3.  [216E.03] [TRANSIT UTILITY REGULATED AS PUBLIC 
  3.4   UTILITY.] 
  3.5      A regulated public transit utility is subject to regulation 
  3.6   as a public utility under sections 216B.03 to 216B.23, 216B.25 
  3.7   to 216B.34, and 216B.43 to 216B.66. 
  3.8      Sec. 4.  [216E.04] [ASSIGNED SERVICE AREA; TRANSIT 
  3.9   UTILITY.] 
  3.10     Subdivision 1.  [LEGISLATIVE POLICY.] It is hereby declared 
  3.11  to be in the public interest that in order to meet the goals 
  3.12  established in section 216E.01, the state of Minnesota should 
  3.13  be, as need is determined, divided into geographic service areas 
  3.14  or corridors within which a specified regulated public transit 
  3.15  utility may be authorized to provide transit service to 
  3.16  customers.  In furtherance of the public interest, the 
  3.17  commission may grant to a person the right to provide service 
  3.18  within a transit service area or corridor and this right to 
  3.19  provide transit service must be exclusive of direct competition 
  3.20  from any publicly subsidized transit services or publicly 
  3.21  subsidized provider of transit services; provided that, 
  3.22  competition may be allowed to the extent necessary for the 
  3.23  coordination and integration of various transit providers and 
  3.24  transit services. 
  3.25     Subd. 2.  [EXCLUSIVE SERVICE AREA PETITION AND SHOWING.] A 
  3.26  person desiring to be designated a regulated public transit 
  3.27  utility for a specified service area or corridor, may petition 
  3.28  the commission for the right to provide a specific mode of 
  3.29  transit service within that specified service area or corridor 
  3.30  exclusive of direct competition from any publicly subsidized 
  3.31  transit services or publicly subsidized provider of transit 
  3.32  services.  Upon receiving a petition, the commission shall give 
  3.33  notice to potentially affected parties and invite the submission 
  3.34  of competing proposals.  The commission may grant that exclusive 
  3.35  right for that mode of transit service upon a showing by the 
  3.36  petitioning person: 
  4.1      (1) that the petitioner possesses the technical, 
  4.2   managerial, and financial resources to provide the proposed 
  4.3   transit services; 
  4.4      (2) that granting the petitioner the exclusive service 
  4.5   right for that area or corridor would ensure the provision of 
  4.6   safer, more cost-effective, or more efficient transit services 
  4.7   compared with other existing or potential providers of 
  4.8   comparable modes of transit services, or would otherwise further 
  4.9   the public interest as described in section 216E.01; 
  4.10     (3) that the petitioner consents to reimburse the 
  4.11  commission for costs associated with the proceeding and to be 
  4.12  regulated as provided in section 216E.03; and 
  4.13     (4) that the petitioner will provide reasonably comparable 
  4.14  or superior services to those provided by all existing publicly 
  4.15  subsidized transit services in that service area, if any, in a 
  4.16  coordinated, cost-effective, and competitive manner. 
  4.17     Subd. 3.  [EXCLUSIVE SERVICE RIGHT.] After a petition is 
  4.18  granted under subdivision 2, the regulated public transit 
  4.19  utility has the right to provide transit services within its 
  4.20  service area or corridor exclusive of direct competition from 
  4.21  any publicly subsidized transit services or publicly subsidized 
  4.22  provider of transit services for a period of time to be 
  4.23  determined by the commissioner consistent with the 
  4.24  infrastructure and facility investment to be made by the transit 
  4.25  utility.  A provider of publicly subsidized transit services 
  4.26  shall neither render nor extend transit service within the 
  4.27  exclusive service area or corridor of the transit utility 
  4.28  thereafter unless the transit utility consents in writing. 
  4.29     Subd. 4.  [COMPETITION FOR EXCLUSIVE RIGHT.] The commission 
  4.30  shall establish procedures and standards by which persons may 
  4.31  compete for exclusive service rights under this section.  The 
  4.32  commission shall require a regulated public transit utility to 
  4.33  make the showing required under subdivision 2 annually.  The 
  4.34  commissioner may revoke or suspend the grant of exclusivity if 
  4.35  the transit utility fails to meet its obligations under this 
  4.36  chapter and related rules. 
  5.1      Sec. 5.  [216E.05] [COMMISSIONER'S REPORT TO LEGISLATURE.] 
  5.2      The commissioner shall monitor the provision of transit 
  5.3   services in this state, and the development of regulated public 
  5.4   transit utilities pursuant to this chapter.  The commissioner 
  5.5   shall present a report to the legislature by January 15 of each 
  5.6   odd-numbered year as to the state of transit services, detailing 
  5.7   those areas of the state that are underserved, and provide 
  5.8   alternatives and recommendations for legislative action.