1.1                          A bill for an act 
  1.2             relating to land use planning; providing for mandatory 
  1.3             comprehensive planning in certain areas; appropriating 
  1.4             money; amending Minnesota Statutes 1996, sections 
  1.5             394.22, by adding subdivisions; 394.23; 394.24, 
  1.6             subdivision 1; 394.32, by adding a subdivision; 
  1.7             462.352, subdivisions 5, 6, and by adding 
  1.8             subdivisions; 462.355, subdivision 1a; and 462.357, 
  1.9             subdivision 2; proposing coding for new law in 
  1.10            Minnesota Statutes, chapters 116C; and 462. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [116C.045] [LAND USE PLANNING.] 
  1.13     Subdivision 1.  [GOALS.] The goals of comprehensive 
  1.14  planning are to: 
  1.15     (1) guide change through planning and develop a community 
  1.16  vision for future development that is sustainable; 
  1.17     (2) promote cooperation among communities to work towards 
  1.18  the most efficient, planned, and cost-effective delivery of 
  1.19  governmental services by, among other means, facilitating 
  1.20  cooperative agreements among adjacent communities and to 
  1.21  coordinate planning to ensure compatibility of one community's 
  1.22  development with development of neighboring communities; 
  1.23     (3) ensure broad citizen participation in planning and 
  1.24  decision making; 
  1.25     (4) respect and foster diversity among communities and 
  1.26  permit communities to maintain their individual identities, 
  1.27  where appropriate, consistent with state law by, among other 
  1.28  means, preserving open space between communities; 
  2.1      (5) use integrated information as a foundation for plans 
  2.2   and decisions; 
  2.3      (6) consider the long-term social, economic, and 
  2.4   environmental costs and benefits of development; 
  2.5      (7) identify the full environmental, social, and economic 
  2.6   costs of new development, including infrastructure costs such as 
  2.7   transportation, sewers and wastewater treatment, water, schools, 
  2.8   recreation, and open space; 
  2.9      (8) use natural resources and public funds efficiently by 
  2.10  directing growth towards areas with existing infrastructure and 
  2.11  services, and by encouraging development that is appropriate for 
  2.12  the ecology and character of the community; 
  2.13     (9) preserve features of local, regional, and statewide 
  2.14  significance, such as farmland, forests, open space, and unique 
  2.15  natural, historic, cultural, scenic, and recreational areas; 
  2.16     (10) live within our means; 
  2.17     (11) foster livable communities with safe, 
  2.18  pedestrian-friendly development that integrates a diverse mix of 
  2.19  housing and jobs, public transit, businesses, public spaces, and 
  2.20  recreational areas; and 
  2.21     (12) enhance Minnesota's economic strength and 
  2.22  competitiveness. 
  2.23     Subd. 2.  [COMPREHENSIVE PLAN REVIEW AND APPROVAL.] The 
  2.24  environmental quality board shall review and comment on each 
  2.25  county comprehensive plan submitted to the board.  The board 
  2.26  shall review each plan to determine if it addresses the goals in 
  2.27  subdivision 1.  The board shall complete its review and comment 
  2.28  within 60 days of receipt of a plan from a county. 
  2.29     Subd. 3.  [ADR ASSISTANCE.] The environmental quality board 
  2.30  shall assist local governments in resolving disputes through 
  2.31  alternative dispute resolution, as provided in section 394.23, 
  2.32  subdivisions 6 and 7. 
  2.33     Sec. 2.  Minnesota Statutes 1996, section 394.22, is 
  2.34  amended by adding a subdivision to read: 
  2.35     Subd. 13.  [CAPITAL IMPROVEMENT PROGRAM.] "Capital 
  2.36  improvement program" means an itemized program setting forth the 
  3.1   schedule and details of specific contemplated public 
  3.2   improvements by fiscal year, including public improvements in or 
  3.3   related to air space and subsurface areas necessary for mined 
  3.4   underground space development pursuant to sections 469.135 to 
  3.5   469.141, together with their estimated cost, the justification 
  3.6   for each improvement, the impact that such improvements will 
  3.7   have on the current operating expense of the county, and such 
  3.8   other information on capital improvements as may be pertinent. 
  3.9      Sec. 3.  Minnesota Statutes 1996, section 394.22, is 
  3.10  amended by adding a subdivision to read: 
  3.11     Subd. 14.  [GROWTH COUNTY.] "Growth county" means a county 
  3.12  outside the metropolitan area in which the population is 
  3.13  estimated by the state demographer to have a growth rate for the 
  3.14  most recent five-year period for which data is available that is 
  3.15  greater than one-half of one percentage point higher than the 
  3.16  statewide growth rate during the same period, and in which the 
  3.17  county population density is greater than 50 people per square 
  3.18  land-mile.  Once a county is determined to be a growth county it 
  3.19  remains a growth county for the purposes of comprehensive 
  3.20  planning. 
  3.21     Sec. 4.  Minnesota Statutes 1996, section 394.22, is 
  3.22  amended by adding a subdivision to read: 
  3.23     Subd. 15.  [METROPOLITAN AREA.] "Metropolitan area" means 
  3.24  the area defined in section 473.121, subdivision 2. 
  3.25     Sec. 5.  Minnesota Statutes 1996, section 394.23, is 
  3.26  amended to read: 
  3.27     394.23 [COMPREHENSIVE PLAN.] 
  3.28     Subdivision 1.  [GENERAL AUTHORITY.] The board shall have 
  3.29  has the power and authority to prepare and adopt by ordinance, a 
  3.30  comprehensive plan.  A comprehensive plan or plans when adopted 
  3.31  by ordinance shall must be the basis for official controls 
  3.32  adopted under the provisions of sections 394.21 to 394.37.  
  3.33     Subd. 2.  [PLANNING IN GROWTH COUNTY.] (a) The county board 
  3.34  in a growth county shall prepare and submit to the environmental 
  3.35  quality board for review and comment a comprehensive plan and 
  3.36  official controls to implement the plan.  
  4.1      (b) In addition to any other requirements of this chapter, 
  4.2   the plan must address the goals in section 116C.045 and 
  4.3   incorporate the comprehensive municipal plan for each 
  4.4   municipality in the county.  
  4.5      (c) The plan must ensure that land outside an urban growth 
  4.6   boundary is zoned as permanent rural or agricultural land, 
  4.7   developed at a density of no more than one dwelling unit in 40 
  4.8   acres, unless clauses (1), (2), and (3) apply: 
  4.9      (1) under the county's land evaluation site assessment 
  4.10  system factors, the land is not suitable for permanent rural or 
  4.11  agricultural zoning; 
  4.12     (2) the potentially affected school districts have 
  4.13  submitted written comments concerning the operating and capital 
  4.14  costs that they may incur over the next 20 to 40 years if the 
  4.15  land is developed at a higher density, and the county board has 
  4.16  considered the comments; and 
  4.17     (3) the county and the environmental quality board find 
  4.18  that the exception is consistent with the goals of comprehensive 
  4.19  planning in section 116C.045. 
  4.20     (d) The county board shall submit the plan to the 
  4.21  environmental quality board within 30 months of determining that 
  4.22  the county is a growth county.  
  4.23     (e) If the county has a previously adopted plan, the board 
  4.24  shall review, update, and submit to the environmental quality 
  4.25  board a revised plan and official controls meeting the 
  4.26  requirements of this subdivision, including the comprehensive 
  4.27  municipal plan for each municipality in the county, within 30 
  4.28  months of determining that the county is a growth county. 
  4.29     Subd. 3.  [PLANNING IN OTHER NONMETROPOLITAN AREA 
  4.30  COUNTIES.] The board in a county outside the metropolitan area, 
  4.31  other than a growth county, that has not adopted a comprehensive 
  4.32  plan shall prepare and submit to the environmental quality board 
  4.33  for review and comment a comprehensive plan that addresses the 
  4.34  goals of section 116C.045 and official controls to implement the 
  4.35  plan within 30 months of the effective date of this section.  
  4.36  The plan must incorporate the comprehensive municipal plan for 
  5.1   each municipality in the county.  A county with a comprehensive 
  5.2   plan adopted or substantially amended in the ten years prior to 
  5.3   the effective date of this section is not required to adopt a 
  5.4   new plan, but shall review and update its plan to address the 
  5.5   goals of section 116C.045 within ten years, as provided in 
  5.6   subdivision 4. 
  5.7      Subd. 4.  [PERIODIC REVIEW AND UPDATE.] The county board 
  5.8   shall review and update the comprehensive plan periodically, but 
  5.9   at least every ten years, and submit it to the environmental 
  5.10  quality board for review and comment.  The updated plan must 
  5.11  meet the same requirements as for initial plans under this 
  5.12  section.  
  5.13     Subd. 5.  [COUNTY RESPONSE.] The county board shall respond 
  5.14  to any comments of the environmental quality board that state 
  5.15  that the county's plan does not address the goals in section 
  5.16  116C.045 and justify or change the plan provisions in question 
  5.17  within 60 days of receipt of the environmental quality board's 
  5.18  comments. 
  5.19     Subd. 6.  [COORDINATION WITH ADJACENT COUNTIES; CONFLICT 
  5.20  RESOLUTION.] Before submitting the comprehensive plan to the 
  5.21  environmental quality board, the county board shall coordinate 
  5.22  its comprehensive plan with adjacent counties.  The adjacent 
  5.23  counties shall review and submit written comments on the 
  5.24  proposed plan to the county board within 60 days of receiving 
  5.25  the plan.  The board shall not submit its plan to the 
  5.26  environmental quality board if an adjacent county determines, as 
  5.27  evidenced by a resolution of the governing body, that 
  5.28  implementation of the plan has the potential to have a 
  5.29  substantial adverse impact on its own plan.  The board shall 
  5.30  negotiate with the affected county to resolve the dispute.  If 
  5.31  the dispute is not resolved within six months, the parties shall 
  5.32  submit the issues to the environmental quality board for 
  5.33  assistance in resolving them through an alternative dispute 
  5.34  resolution process. 
  5.35     Subd. 7.  [COORDINATION WITH METROPOLITAN COUNCIL.] (a) A 
  5.36  county adjacent to the metropolitan area shall coordinate its 
  6.1   plan with the metropolitan council, in relation to the council's 
  6.2   development guide. 
  6.3      (b) If the county board determines that implementation of 
  6.4   the council's development guide has the potential to have a 
  6.5   substantial adverse impact on the county, as evidenced by a 
  6.6   resolution of the county board, the metropolitan council shall 
  6.7   stay any action related to the county board's concerns until the 
  6.8   dispute is resolved.  If the parties do not resolve the dispute 
  6.9   within six months, the parties shall submit the issues to the 
  6.10  environmental quality board for assistance in resolving them 
  6.11  through an alternative dispute resolution process. 
  6.12     (c) If the metropolitan council determines, as evidenced by 
  6.13  a resolution of the council, that the county's proposed plan has 
  6.14  the potential to have a substantial adverse impact on a 
  6.15  metropolitan system, the county board shall negotiate with the 
  6.16  council to resolve the dispute.  If the dispute is not resolved 
  6.17  within six months, the parties shall submit the issues to the 
  6.18  environmental quality board for assistance in resolving them 
  6.19  through an alternative dispute resolution process. 
  6.20     (d) The county shall not submit its plan to the 
  6.21  environmental quality board for review and comment until any 
  6.22  dispute is resolved.  
  6.23     Subd. 8.  [PLAN ADOPTION.] Within 30 days of receiving the 
  6.24  environmental quality board's comments or submitting the 
  6.25  county's response to the comments, whichever is later, the 
  6.26  county board shall adopt and implement the plan. 
  6.27     Subd. 9.  [LIMITATION ON PLAN AMENDMENT.] The county board 
  6.28  shall not amend its plan for an area inside an urban growth 
  6.29  boundary that is outside the municipality's jurisdiction without 
  6.30  the municipality's approval. 
  6.31     Sec. 6.  Minnesota Statutes 1996, section 394.24, 
  6.32  subdivision 1, is amended to read: 
  6.33     Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
  6.34  which shall further the purpose and objectives of the 
  6.35  comprehensive plan and parts thereof shall be adopted by 
  6.36  ordinance.  The board may not adopt or implement official 
  7.1   controls that are inconsistent with or conflict with the adopted 
  7.2   comprehensive plan.  If a comprehensive plan is in conflict with 
  7.3   an official control, the official control must be brought into 
  7.4   conformance with the plan by the board.  The comprehensive plan 
  7.5   must provide guidelines for the timing and sequence of the 
  7.6   adoption of official controls to ensure planned, orderly, and 
  7.7   staged development and redevelopment consistent with the 
  7.8   comprehensive plan. 
  7.9      Sec. 7.  Minnesota Statutes 1996, section 394.32, is 
  7.10  amended by adding a subdivision to read: 
  7.11     Subd. 6.  [PLANNING FOR TOWNS.] Notwithstanding the 
  7.12  provisions of subdivisions 1 to 3, the board shall include the 
  7.13  area within each town in the county in its plan.  The county 
  7.14  shall also prepare official controls to implement the plan that 
  7.15  shall be binding on the town, except that a town may adopt 
  7.16  official controls that provide for a lower density than provided 
  7.17  in the county's plan.  A county may not require reimbursement of 
  7.18  expenses by the town for planning. 
  7.19     Sec. 8.  Minnesota Statutes 1996, section 462.352, 
  7.20  subdivision 5, is amended to read: 
  7.21     Subd. 5.  [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 
  7.22  municipal plan" means a compilation of policy statements, goals, 
  7.23  standards, and maps for guiding the physical, social and 
  7.24  economic development, both private and public, of the 
  7.25  municipality and its environs, including air space and 
  7.26  subsurface areas necessary for mined underground space 
  7.27  development pursuant to sections 469.135 to 469.141, and may 
  7.28  include, but is not limited to, the following:  statements of 
  7.29  policies, goals, standards, a land use plan, including proposed 
  7.30  densities for development, a community facilities plan, a 
  7.31  transportation plan, and recommendations for plan execution.  A 
  7.32  comprehensive plan represents the planning agency's 
  7.33  recommendations for the future development of the community.  
  7.34     Sec. 9.  Minnesota Statutes 1996, section 462.352, 
  7.35  subdivision 6, is amended to read: 
  7.36     Subd. 6.  [LAND USE PLAN.] "Land use plan" means a 
  8.1   compilation of policy statements, goals, standards, and maps, 
  8.2   and action programs for guiding the future development of 
  8.3   private and public property.  The term includes a plan 
  8.4   designating types of uses for the entire municipality as well as 
  8.5   a specialized plan showing specific areas or specific types of 
  8.6   land uses, such as residential, commercial, industrial, public 
  8.7   or semipublic uses or any combination of such uses.  A land use 
  8.8   plan may also include the proposed densities for development. 
  8.9      Sec. 10.  Minnesota Statutes 1996, section 462.352, is 
  8.10  amended by adding a subdivision to read: 
  8.11     Subd. 18.  [GROWTH COUNTY.] "Growth county" has the meaning 
  8.12  given it in section 394.22, subdivision 14. 
  8.13     Sec. 11.  Minnesota Statutes 1996, section 462.352, is 
  8.14  amended by adding a subdivision to read: 
  8.15     Subd. 19.  [URBAN GROWTH BOUNDARY.] "Urban growth boundary" 
  8.16  means the designated boundary around an urban area within which 
  8.17  there is a sufficient supply of developable land for at least a 
  8.18  prospective 20-year period, based on demographic forecasts and 
  8.19  the density at which the city wishes to develop. 
  8.20     Sec. 12.  [462.3535] [PLANNING REQUIREMENTS.] 
  8.21     Subdivision 1.  [CITIES IN GROWTH COUNTIES; URBAN GROWTH 
  8.22  BOUNDARIES.] (a) The comprehensive municipal plan for a 
  8.23  statutory or home rule charter city in a growth county, and 
  8.24  official controls to implement the plan, must (1) address the 
  8.25  goals in section 116C.045, and (2) establish an urban growth 
  8.26  boundary for the urbanized and urbanizing area.  
  8.27     (b) Within the urban growth boundary, the plan must provide 
  8.28  for the staged provision of urban services, including, but not 
  8.29  limited to, water, wastewater collection and treatment, and 
  8.30  transportation.  
  8.31     (c) Outside the urban growth boundary, the plan must not 
  8.32  provide urban services and the land must be maintained as 
  8.33  permanent rural or agricultural land, developed at a density of 
  8.34  not more than one dwelling unit in 40 acres, unless clauses (1), 
  8.35  (2), and (3) apply: 
  8.36     (1) under the county's land evaluation site assessment 
  9.1   system factors, the land is not suitable for permanent rural or 
  9.2   agricultural zoning; 
  9.3      (2) the potentially affected school districts have 
  9.4   submitted written comments concerning the operating and capital 
  9.5   costs that they may incur over the next 20 to 40 years if the 
  9.6   land is developed at a higher density and the city has 
  9.7   considered the comments; and 
  9.8      (3) the county and the environmental quality board find 
  9.9   that the exception is consistent with the goals of comprehensive 
  9.10  planning in section 116C.045. 
  9.11     (d) A comprehensive municipal plan meeting the requirements 
  9.12  of this subdivision must be prepared within two years of 
  9.13  determining that this subdivision applies to the city.  
  9.14     Subd. 2.  [OTHER CITIES.] A plan that addresses the goals 
  9.15  in section 116C.045, and official controls to implement the 
  9.16  plan, must be prepared for a statutory or home rule charter city 
  9.17  in a city outside the metropolitan area that is not a growth 
  9.18  county, and that has not adopted a comprehensive municipal plan, 
  9.19  within two years of the effective date of this section.  The 
  9.20  plan may establish an urban growth boundary.  A new plan is not 
  9.21  required for a city with a plan adopted or substantially amended 
  9.22  in the ten years prior to the effective date of this section, 
  9.23  but the plan must be reviewed and updated to address the goals 
  9.24  of section 116C.045 within ten years, as provided in section 
  9.25  462.355, subdivision 1a. 
  9.26     Subd. 3.  [COORDINATION WITH ADJACENT CITIES; CONFLICT 
  9.27  RESOLUTION.] Before a comprehensive municipal plan is 
  9.28  incorporated into the county's plan under section 394.23, a 
  9.29  city's comprehensive municipal plan must be coordinated with 
  9.30  adjacent cities within the county.  As soon as practicable after 
  9.31  the development of a comprehensive municipal plan by a city, the 
  9.32  city shall provide a copy of the draft plan to adjacent cities 
  9.33  within the county for review and comment.  An adjacent city has 
  9.34  30 days after receipt to review and submit written comments to 
  9.35  the city.  If an adjacent city determines that the 
  9.36  implementation of the city's plan has the potential to have a 
 10.1   substantially adverse impact on its own plan, the adjacent city 
 10.2   shall notify the city in writing of its determinations.  The 
 10.3   city and the adjacent city have 60 days to negotiate a 
 10.4   resolution.  If after this 60-day period the dispute remains 
 10.5   unresolved, the city may submit the dispute to mediation for an 
 10.6   additional 60-day period.  After the close of mediation or if 
 10.7   mediation is not used, the city may amend its comprehensive plan 
 10.8   based on comments received or negotiations and shall submit the 
 10.9   plan to the county. 
 10.10     Subd. 4.  [COUNTY APPROVAL.] If a city plans for growth 
 10.11  beyond its current boundaries, the city's proposed comprehensive 
 10.12  municipal plan and proposed urban growth boundary must be 
 10.13  reviewed and approved by the county before the plan is 
 10.14  incorporated into the county's plan. 
 10.15     Subd. 5.  [PLAN ADOPTION.] The city shall adopt and 
 10.16  implement the comprehensive municipal plan after the 
 10.17  environmental quality board has reviewed and commented on the 
 10.18  county's plan that incorporates the city's plan. 
 10.19     Sec. 13.  Minnesota Statutes 1996, section 462.355, 
 10.20  subdivision 1a, is amended to read: 
 10.21     Subd. 1a.  [PLAN UPDATE BY METROPOLITAN MUNICIPALITIES.] 
 10.22  Each municipality in the metropolitan area, as defined in 
 10.23  section 473.121, subdivision 2, shall review and update its 
 10.24  comprehensive plan and fiscal devices and official controls as 
 10.25  provided in section 473.864, subdivision 2.  The comprehensive 
 10.26  municipal plan for each statutory or home rule charter city 
 10.27  outside the metropolitan area, and official controls to 
 10.28  implement the plan, must be reviewed and updated periodically, 
 10.29  but at least every ten years. 
 10.30     Sec. 14.  Minnesota Statutes 1996, section 462.357, 
 10.31  subdivision 2, is amended to read: 
 10.32     Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
 10.33  adoption of a land use plan for the municipality, the planning 
 10.34  agency, for the purpose of carrying out the policies and goals 
 10.35  of the land use plan, may prepare a proposed zoning ordinance 
 10.36  and submit it to the governing body with its recommendations for 
 11.1   adoption.  Subject to the requirements of subdivisions 3, 4, and 
 11.2   5, the governing body may adopt and amend a zoning ordinance by 
 11.3   a two-thirds vote of all its members.  If the comprehensive 
 11.4   municipal plan is in conflict with the zoning ordinance, the 
 11.5   zoning ordinance supersedes the plan.  The governing body may 
 11.6   not adopt or implement official controls that are inconsistent 
 11.7   with or conflict with the adopted comprehensive municipal plan.  
 11.8   If a comprehensive municipal plan is in conflict with an 
 11.9   official control, the official control must be brought into 
 11.10  conformance with the plan by the governing body.  The plan must 
 11.11  provide guidelines for the timing and sequence of the adoption 
 11.12  of official controls to ensure planned, orderly, and staged 
 11.13  development and redevelopment consistent with the plan. 
 11.14     Sec. 15.  [APPROPRIATION.] 
 11.15     $....... is appropriated from the general fund to the 
 11.16  environmental quality board for the purposes of making grants to 
 11.17  local governmental units outside the metropolitan area for 
 11.18  planning required by this act.