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1.1 A bill for an act <br />1.2 relating to local government; providing for biennial notice and referendum on <br />1.3 whether a municipality may use public utility license, permit, rights, or franchise <br />1.4 fees to raise revenue; amending Minnesota Statutes 2016, section 216B.36. <br />1.5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: <br />1.6 Section 1. Minnesota Statutes 2016, section 216B.36, is amended to read: <br />1.7 216B.36 MUNICIPAL REGULATORY AND TAXING POWERS. <br />1.8 Subdivision 1. Municipal authority to regulate public utilities. Any public utility <br />1.9 furnishing the utility services enumerated in section 216B.02 or occupying streets, highways, <br />1.10 or other public property within a municipality may be required to obtain a license, permit, <br />1.11 right, or franchise in accordance with the terms, conditions, and limitations of regulatory <br />1.12 acts of the municipality, including the placing of distribution lines and facilities underground. <br />1.13 Under the license, permit, right, or franchise, the utility may be obligated by any municipality <br />1.14 to pay to the municipality fees to raise revenue or defray increased municipal costs accruing <br />1.15 as a result of utility operations, or both. A fee that raises revenue under a license, permit, <br />1.16 right, or franchise agreement entered into or renewed on or after August 1, 2017, is subject <br />1.17 to the requirements of subdivision 2. The fee may include but is not limited to a sum of <br />1.18 money based upon gross operating revenues or gross earnings from its operations in the <br />1.19 municipality so long as the public utility shall continue to operate in the municipality, unless <br />1.20 upon request of the public utility it is expressly released from the obligation at any time by <br />1.21 such municipality. Notwithstanding the definition of "public utility" in section 216B.02, <br />1.22 subdivision 4, a municipality may require payment of a fee under this section by a cooperative <br />1.23 electric association organized under chapter 308A that furnishes utility services within the <br />1.24 municipality. All existing licenses, permits, franchises, and other rights acquired by any <br />1 Section 1. <br />REVISOR LCB/BR 17-249702/02/17 <br />State of MinnesotaThis Document can be made available <br />in alternative formats upon request <br />HOUSE OF REPRESENTATIVES <br />H. F. No. 1146NINETIETH SESSION <br />Authored by Vogel, Pelowski, Drazkowski, Loonan, Hertaus and others02/13/2017 <br />The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy