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 4A; and 462. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [4A.08] [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  office of strategic and long-range planning shall review and 
  2.25  comment on each county comprehensive plan submitted to the 
  2.26  office.  The office shall review each plan to determine if it 
  2.27  addresses the goals in subdivision 1.  The office shall complete 
  2.28  its review and comment within 60 days of receipt of a plan from 
  2.29  a county. 
  2.30     Sec. 2.  Minnesota Statutes 1996, section 394.22, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 13.  [CAPITAL IMPROVEMENT PROGRAM.] "Capital 
  2.33  improvement program" means an itemized program setting forth the 
  2.34  schedule and details of specific contemplated public 
  2.35  improvements by fiscal year, including public improvements in or 
  2.36  related to air space and subsurface areas necessary for mined 
  3.1   underground space development pursuant to sections 469.135 to 
  3.2   469.141, together with their estimated cost, the justification 
  3.3   for each improvement, the impact that such improvements will 
  3.4   have on the current operating expense of the county, and such 
  3.5   other information on capital improvements as may be pertinent. 
  3.6      Sec. 3.  Minnesota Statutes 1996, section 394.22, is 
  3.7   amended by adding a subdivision to read: 
  3.8      Subd. 14.  [GROWTH COUNTY.] "Growth county" means a county 
  3.9   outside the metropolitan area in which the population is 
  3.10  estimated by the state demographer to have a growth rate for the 
  3.11  most recent five-year period for which data is available that is 
  3.12  greater than one-half of one percentage point higher than the 
  3.13  statewide growth rate during the same period, and in which the 
  3.14  county population density is greater than 50 people per square 
  3.15  land-mile.  Once a county is determined to be a growth county it 
  3.16  remains a growth county for the purposes of comprehensive 
  3.17  planning. 
  3.18     Sec. 4.  Minnesota Statutes 1996, section 394.22, is 
  3.19  amended by adding a subdivision to read: 
  3.20     Subd. 15.  [METROPOLITAN AREA.] "Metropolitan area" means 
  3.21  the area defined in section 473.121, subdivision 2. 
  3.22     Sec. 5.  Minnesota Statutes 1996, section 394.23, is 
  3.23  amended to read: 
  3.24     394.23 [COMPREHENSIVE PLAN.] 
  3.25     Subdivision 1.  [GENERAL AUTHORITY.] The board shall have 
  3.26  has the power and authority to prepare and adopt by ordinance, a 
  3.27  comprehensive plan.  A comprehensive plan or plans when adopted 
  3.28  by ordinance shall must be the basis for official controls 
  3.29  adopted under the provisions of sections 394.21 to 394.37.  
  3.30     Subd. 2.  [PLANNING IN GROWTH COUNTY.] (a) The county board 
  3.31  in a growth county shall prepare and submit to the office of 
  3.32  strategic and long-range planning for review and comment a 
  3.33  comprehensive plan and official controls to implement the plan.  
  3.34     (b) In addition to any other requirements of this chapter, 
  3.35  the plan must address the goals in section 4A.08 and incorporate 
  3.36  the comprehensive municipal plan for each municipality in the 
  4.1   county.  
  4.2      (c) The plan must ensure that land outside an urban growth 
  4.3   boundary is zoned as permanent rural or agricultural land, 
  4.4   developed at a density of no more than one dwelling unit in 40 
  4.5   acres, unless clauses (1), (2), and (3) apply: 
  4.6      (1) under the county's land evaluation site assessment 
  4.7   system factors, the land is not suitable for permanent rural or 
  4.8   agricultural zoning; 
  4.9      (2) the potentially affected school districts have 
  4.10  submitted written comments concerning the operating and capital 
  4.11  costs that they may incur over the next 20 to 40 years if the 
  4.12  land is developed at a higher density, and the county board has 
  4.13  considered the comments; and 
  4.14     (3) the county and the office of strategic and long-range 
  4.15  planning find that the exception is consistent with the goals of 
  4.16  comprehensive planning in section 4A.08. 
  4.17     (d) The county board shall submit the plan to the office of 
  4.18  strategic and long-range planning within 30 months of 
  4.19  determining that the county is a growth county.  
  4.20     (e) If the county has a previously adopted plan, the board 
  4.21  shall review, update, and submit to the office of strategic and 
  4.22  long-range planning a revised plan and official controls meeting 
  4.23  the requirements of this subdivision, including the 
  4.24  comprehensive municipal plan for each municipality in the 
  4.25  county, within 30 months of determining that the county is a 
  4.26  growth county. 
  4.27     Subd. 3.  [PLANNING IN OTHER NONMETROPOLITAN AREA 
  4.28  COUNTIES.] The board in a county outside the metropolitan area, 
  4.29  other than a growth county, that has not adopted a comprehensive 
  4.30  plan shall prepare and submit to the office of strategic and 
  4.31  long-range planning for review and comment a comprehensive plan 
  4.32  that addresses the goals of section 4A.08 and official controls 
  4.33  to implement the plan within 30 months of the effective date of 
  4.34  this section.  The plan must incorporate the comprehensive 
  4.35  municipal plan for each municipality in the county.  A county 
  4.36  with a comprehensive plan adopted or substantially amended in 
  5.1   the ten years prior to the effective date of this section is not 
  5.2   required to adopt a new plan, but shall review and update its 
  5.3   plan to address the goals of section 4A.08 within ten years, as 
  5.4   provided in subdivision 4. 
  5.5      Subd. 4.  [PERIODIC REVIEW AND UPDATE.] The county board 
  5.6   shall review and update the comprehensive plan periodically, but 
  5.7   at least every ten years, and submit it to the office of 
  5.8   strategic and long-range planning for review and comment.  The 
  5.9   updated plan must meet the same requirements as for initial 
  5.10  plans under this section.  
  5.11     Subd. 5.  [COUNTY RESPONSE.] The county board shall respond 
  5.12  to any comments of the office of strategic and long-range 
  5.13  planning that state that the county's plan does not address the 
  5.14  goals in section 4A.08 and justify or change the plan provisions 
  5.15  in question within 60 days of receipt of the office of strategic 
  5.16  and long-range planning's comments. 
  5.17     Subd. 6.  [ADJACENT COUNTIES; REVIEW AND COMMENT.] The 
  5.18  county board shall submit its proposed comprehensive plan to 
  5.19  adjacent counties for review and comment at least six months 
  5.20  before submitting the plan to the office of strategic and 
  5.21  long-range planning.  The county board shall resubmit its 
  5.22  proposed plan to adjacent counties at the same time it submits 
  5.23  the plan to the office of strategic and long-range planning. 
  5.24     Subd. 7.  [METROPOLITAN COUNCIL; REVIEW AND COMMENT.] The 
  5.25  county board of a county adjacent to the metropolitan area shall 
  5.26  submit its proposed comprehensive plan to the metropolitan 
  5.27  council for review and comment at least six months before 
  5.28  submitting the plan to the office of strategic and long-range 
  5.29  planning.  The county board shall resubmit its proposed plan to 
  5.30  the metropolitan council at the same time it submits the plan to 
  5.31  the office of strategic and long-range planning. 
  5.32     Subd. 8.  [PLAN ADOPTION.] Within 30 days of receiving the 
  5.33  office of strategic and long-range planning's comments or 
  5.34  submitting the county's response to the comments, whichever is 
  5.35  later, the county board shall adopt and implement the plan. 
  5.36     Subd. 9.  [LIMITATION ON PLAN AMENDMENT.] The county board 
  6.1   shall not amend its plan for an area inside an urban growth 
  6.2   boundary that is outside the municipality's jurisdiction without 
  6.3   the municipality's approval. 
  6.4      Sec. 6.  Minnesota Statutes 1996, section 394.24, 
  6.5   subdivision 1, is amended to read: 
  6.6      Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
  6.7   which shall further the purpose and objectives of the 
  6.8   comprehensive plan and parts thereof shall be adopted by 
  6.9   ordinance.  The board may not adopt or implement official 
  6.10  controls that are inconsistent with or conflict with the adopted 
  6.11  comprehensive plan.  If a comprehensive plan is in conflict with 
  6.12  an official control, the official control must be brought into 
  6.13  conformance with the plan by the board.  The comprehensive plan 
  6.14  must provide guidelines for the timing and sequence of the 
  6.15  adoption of official controls to ensure planned, orderly, and 
  6.16  staged development and redevelopment consistent with the 
  6.17  comprehensive plan. 
  6.18     Sec. 7.  Minnesota Statutes 1996, section 394.32, is 
  6.19  amended by adding a subdivision to read: 
  6.20     Subd. 5.  [PLANNING FOR TOWNS.] If the governing body of a 
  6.21  town does not prepare and adopt for the town a comprehensive 
  6.22  plan, and official controls consistent with the plan, the county 
  6.23  board shall do so.  A county may not require reimbursement of 
  6.24  expenses by the town for planning. 
  6.25     Sec. 8.  Minnesota Statutes 1996, section 462.352, 
  6.26  subdivision 5, is amended to read: 
  6.27     Subd. 5.  [COMPREHENSIVE MUNICIPAL PLAN.] "Comprehensive 
  6.28  municipal plan" means a compilation of policy statements, goals, 
  6.29  standards, and maps for guiding the physical, social and 
  6.30  economic development, both private and public, of the 
  6.31  municipality and its environs, including air space and 
  6.32  subsurface areas necessary for mined underground space 
  6.33  development pursuant to sections 469.135 to 469.141, and may 
  6.34  include, but is not limited to, the following:  statements of 
  6.35  policies, goals, standards, a land use plan, including proposed 
  6.36  densities for development, a community facilities plan, a 
  7.1   transportation plan, and recommendations for plan execution.  A 
  7.2   comprehensive plan represents the planning agency's 
  7.3   recommendations for the future development of the community.  
  7.4      Sec. 9.  Minnesota Statutes 1996, section 462.352, 
  7.5   subdivision 6, is amended to read: 
  7.6      Subd. 6.  [LAND USE PLAN.] "Land use plan" means a 
  7.7   compilation of policy statements, goals, standards, and maps, 
  7.8   and action programs for guiding the future development of 
  7.9   private and public property.  The term includes a plan 
  7.10  designating types of uses for the entire municipality as well as 
  7.11  a specialized plan showing specific areas or specific types of 
  7.12  land uses, such as residential, commercial, industrial, public 
  7.13  or semipublic uses or any combination of such uses.  A land use 
  7.14  plan may also include the proposed densities for development. 
  7.15     Sec. 10.  Minnesota Statutes 1996, section 462.352, is 
  7.16  amended by adding a subdivision to read: 
  7.17     Subd. 18.  [GROWTH COUNTY.] "Growth county" has the meaning 
  7.18  given it in section 394.22, subdivision 14. 
  7.19     Sec. 11.  Minnesota Statutes 1996, section 462.352, is 
  7.20  amended by adding a subdivision to read: 
  7.21     Subd. 19.  [URBAN GROWTH BOUNDARY.] "Urban growth boundary" 
  7.22  means the designated boundary around an urban area within which 
  7.23  there is a sufficient supply of developable land for at least a 
  7.24  prospective 20-year period, based on demographic forecasts and 
  7.25  the density at which the city wishes to develop. 
  7.26     Sec. 12.  [462.3535] [PLANNING REQUIREMENTS.] 
  7.27     Subdivision 1.  [CITIES IN GROWTH COUNTIES; URBAN GROWTH 
  7.28  BOUNDARIES.] (a) The comprehensive municipal plan for a 
  7.29  statutory or home rule charter city in a growth county, and 
  7.30  official controls to implement the plan, must (1) address the 
  7.31  goals in section 4A.08, and (2) establish an urban growth 
  7.32  boundary for the urbanized and urbanizing area.  
  7.33     (b) Within the urban growth boundary, the plan must provide 
  7.34  for the staged provision of urban services, including, but not 
  7.35  limited to, water, wastewater collection and treatment, and 
  7.36  transportation.  
  8.1      (c) Outside the urban growth boundary, the plan must not 
  8.2   provide urban services and the land must be maintained as 
  8.3   permanent rural or agricultural land, developed at a density of 
  8.4   not more than one dwelling unit in 40 acres, unless clauses (1), 
  8.5   (2), and (3) apply: 
  8.6      (1) under the county's land evaluation site assessment 
  8.7   system factors, the land is not suitable for permanent rural or 
  8.8   agricultural zoning; 
  8.9      (2) the potentially affected school districts have 
  8.10  submitted written comments concerning the operating and capital 
  8.11  costs that they may incur over the next 20 to 40 years if the 
  8.12  land is developed at a higher density and the city has 
  8.13  considered the comments; and 
  8.14     (3) the county and the office of strategic and long-range 
  8.15  planning find that the exception is consistent with the goals of 
  8.16  comprehensive planning in section 4A.08. 
  8.17     (d) A comprehensive municipal plan meeting the requirements 
  8.18  of this subdivision must be prepared within two years of 
  8.19  determining that this subdivision applies to the city.  
  8.20     Subd. 2.  [OTHER CITIES.] A plan that addresses the goals 
  8.21  in section 4A.08, and official controls to implement the plan, 
  8.22  must be prepared for a statutory or home rule charter city in a 
  8.23  city outside the metropolitan area that is not a growth county, 
  8.24  and that has not adopted a comprehensive municipal plan, within 
  8.25  two years of the effective date of this section.  The plan may 
  8.26  establish an urban growth boundary.  A new plan is not required 
  8.27  for a city with a plan adopted or substantially amended in the 
  8.28  ten years prior to the effective date of this section, but the 
  8.29  plan must be reviewed and updated to address the goals of 
  8.30  section 4A.08 within ten years, as provided in section 462.355, 
  8.31  subdivision 1a. 
  8.32     Subd. 3.  [URBAN GROWTH BOUNDARY DEVELOPMENT PROCESS.] (a) 
  8.33  A city that develops an urban growth boundary beyond its current 
  8.34  corporate boundaries in an unincorporated area as part of its 
  8.35  comprehensive municipal plan shall include in the plan a 
  8.36  boundary adjustment staging plan.  The plan must establish a 
  9.1   time schedule, over the subsequent 20-year period, for the 
  9.2   boundary adjustment of the unincorporated area located between 
  9.3   the urban growth boundary designated in the plan and the city's 
  9.4   existing corporate limits.  The boundary adjustment staging plan 
  9.5   must be negotiated as part of the comprehensive planning process 
  9.6   with the county and the townships with unincorporated areas 
  9.7   located within the designated urban growth boundary. 
  9.8      (b) After a city's comprehensive municipal plan is approved 
  9.9   under this section, the boundary adjustment staging plan 
  9.10  approved as part of the comprehensive plan must be filed with 
  9.11  the Minnesota municipal board. 
  9.12     (c) If a comprehensive municipal plan is updated under 
  9.13  section 462.355, subdivision 1a, the boundary adjustment staging 
  9.14  plan included in the plan must be adjusted accordingly and 
  9.15  refiled with the Minnesota municipal board.  A refiled boundary 
  9.16  adjustment staging plan supersedes a previously filed staging 
  9.17  plan. 
  9.18     Subd. 4.  [ADJACENT CITIES; REVIEW AND COMMENT.] At least 
  9.19  six months before a comprehensive municipal plan is incorporated 
  9.20  into the county's plan under section 394.23, the city must 
  9.21  submit its proposed comprehensive municipal plan to adjacent 
  9.22  cities for review and comment.  The city must resubmit its plan 
  9.23  to adjacent cities at the same time it submits the plan to the 
  9.24  county for incorporation into the county plan. 
  9.25     Subd. 5.  [COUNTY APPROVAL.] If a city plans for growth 
  9.26  beyond its current boundaries, the city's proposed comprehensive 
  9.27  municipal plan and proposed urban growth boundary must be 
  9.28  reviewed and approved by the county before the plan is 
  9.29  incorporated into the county's plan. 
  9.30     Subd. 6.  [COUNTY APPROVAL PROCESS; CONFLICT 
  9.31  RESOLUTION.] (a) Upon receipt by the county of a comprehensive 
  9.32  municipal plan submitted by a city for review and approval under 
  9.33  subdivision 5, the county shall, within 30 days of receipt of a 
  9.34  city plan, review and approve the plan in accordance with this 
  9.35  subdivision.  The county shall review and approve the city plan 
  9.36  if it addresses the goals stated in section 4A.08. 
 10.1      (b) If the county board approves the city plan, the county 
 10.2   shall within 15 days of approval submit the city's plan, along 
 10.3   with a resolution of the county board approving the city plan 
 10.4   and incorporating the city plan by reference into the county 
 10.5   comprehensive plan, to the office of strategic and long-range 
 10.6   planning for final review and comment under subdivision 8.  The 
 10.7   city shall adopt the plan as provided in subdivision 8. 
 10.8      (c) If the county does not approve the city's plan, the 
 10.9   county shall notify the city within five days of the decision, 
 10.10  stating the reasons for disapproval and what is needed for the 
 10.11  plan to address the goals in section 4A.08.  The city may amend 
 10.12  the plan and resubmit the plan to the county.  The county has an 
 10.13  additional 30 days to review and approve a resubmitted plan.  
 10.14  The city may challenge any decision of the county at any point 
 10.15  by filing a written request for mediation of the dispute with 
 10.16  the county.  Within 30 days of filing the request, the city and 
 10.17  county shall submit to mediation facilitated by the office of 
 10.18  strategic and long-range planning for a period of 30 days. 
 10.19     (d) If the dispute remains unresolved after mediation, the 
 10.20  city may appeal the county decision by filing a contested case 
 10.21  with the office of administrative hearings under chapter 14.  
 10.22  The office of administrative hearings shall set the matter on 
 10.23  for hearing within 30 to 60 days of receipt of a request for 
 10.24  review.  The administrative law judge shall consider the 
 10.25  decision of the county, considering the goals stated in section 
 10.26  4A.08, and the following factors with respect to the 
 10.27  reasonableness of the designated urban growth boundary 
 10.28  established in the plan which has been objected to by the county:
 10.29     (1) the present population and population trends for the 
 10.30  county, city, and the area within the designated urban growth 
 10.31  boundary; 
 10.32     (2) the present pattern of physical development in the city 
 10.33  and the area within the designated urban growth boundary; 
 10.34     (3) the reasonableness of past and projected building 
 10.35  permit trends and any projected or pending development proposals 
 10.36  in the city or the area within the designated urban growth 
 11.1   boundary; 
 11.2      (4) the present sewer, water, and transportation 
 11.3   infrastructure capacity in the city; 
 11.4      (5) the available developable land remaining within 
 11.5   corporate boundaries taking into consideration wetlands, 
 11.6   forested areas, lakes, streams, rivers, bluffs, bogs, parks and 
 11.7   open space areas, soil conditions, and slope conditions; 
 11.8      (6) the reasonableness of the projected 20-year supply of 
 11.9   land; 
 11.10     (7) the fiscal data, including, but not limited to, tax 
 11.11  capacity information, service delivery information, and state 
 11.12  aids; and 
 11.13     (8) the adequacy of existing governmental services in the 
 11.14  area within the designated urban growth boundary. 
 11.15     (e) A county or city may present evidence and testimony on 
 11.16  any of the above factors or goals established in section 4A.08 
 11.17  to the administrative law judge.  The administrative law judge, 
 11.18  after a hearing on the matter, shall make a decision regarding 
 11.19  the dispute.  If the city's comprehensive municipal plan 
 11.20  addresses the goals of section 4A.08 and the administrative law 
 11.21  judge finds that the city's projected estimates found in its 
 11.22  comprehensive plan are reasonable with respect to the urban 
 11.23  growth boundary, the administrative law judge shall order 
 11.24  approval of the city plan. 
 11.25     (f) The administrative law judge shall make a decision 
 11.26  within 60 days of hearing the matter and transmit the order to 
 11.27  the city, county, and office of strategic and long-range 
 11.28  planning.  If the order is to approve the comprehensive plan, 
 11.29  the order must contain notice directing the county to approve 
 11.30  the city plan within ten days of receipt of the administrative 
 11.31  law judge's order.  The city shall thereafter adopt the 
 11.32  comprehensive plan pursuant to subdivision 8. 
 11.33     (g) If the order is not to approve the city's comprehensive 
 11.34  municipal plan, the administrative law judge shall state the 
 11.35  reasons for the denial in the order and transmit the order to 
 11.36  the city, county, and office of strategic and long-range 
 12.1   planning.  The city shall within 30 days of receipt of the order 
 12.2   amend its comprehensive plan and resubmit the plan to the county 
 12.3   for review and approval pursuant to this subdivision.  The 
 12.4   county shall not unreasonably withhold approval of the plan if 
 12.5   the resubmitted city plan is in keeping with the administrative 
 12.6   law judge's order. 
 12.7      (h) The city or county may appeal an order of the 
 12.8   administrative law judge to the court of appeals. 
 12.9      Subd. 7.  [COUNTY TO PREPARE PLAN.] If a city does not 
 12.10  prepare a comprehensive municipal plan, the county shall prepare 
 12.11  a plan for the city which shall be incorporated into the 
 12.12  county's plan.  The city shall adopt the plan as provided in 
 12.13  subdivision 8. 
 12.14     Subd. 8.  [PLAN ADOPTION.] The city shall adopt and 
 12.15  implement the comprehensive municipal plan after the office of 
 12.16  strategic and long-range planning has reviewed and commented on 
 12.17  the county's plan that incorporates the city's plan.  The office 
 12.18  of strategic and long-range planning shall notify the city and 
 12.19  the county that it has reviewed the plan and provide the city 
 12.20  and the county any comments on the city's plan within 30 days of 
 12.21  receiving the plan.  After receipt of the notice and any 
 12.22  comments from the office, the city shall adopt the plan within 
 12.23  30 days. 
 12.24     Sec. 13.  Minnesota Statutes 1996, section 462.355, 
 12.25  subdivision 1a, is amended to read: 
 12.26     Subd. 1a.  [PLAN UPDATE BY METROPOLITAN MUNICIPALITIES.] 
 12.27  Each municipality in the metropolitan area, as defined in 
 12.28  section 473.121, subdivision 2, shall review and update its 
 12.29  comprehensive plan and fiscal devices and official controls as 
 12.30  provided in section 473.864, subdivision 2.  The comprehensive 
 12.31  municipal plan for each statutory or home rule charter city 
 12.32  outside the metropolitan area, and official controls to 
 12.33  implement the plan, must be reviewed and updated periodically, 
 12.34  but at least every ten years. 
 12.35     Sec. 14.  Minnesota Statutes 1996, section 462.357, 
 12.36  subdivision 2, is amended to read: 
 13.1      Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
 13.2   adoption of a land use plan for the municipality, the planning 
 13.3   agency, for the purpose of carrying out the policies and goals 
 13.4   of the land use plan, may prepare a proposed zoning ordinance 
 13.5   and submit it to the governing body with its recommendations for 
 13.6   adoption.  Subject to the requirements of subdivisions 3, 4, and 
 13.7   5, the governing body may adopt and amend a zoning ordinance by 
 13.8   a two-thirds vote of all its members.  If the comprehensive 
 13.9   municipal plan is in conflict with the zoning ordinance, the 
 13.10  zoning ordinance supersedes the plan.  The governing body may 
 13.11  not adopt or implement official controls that are inconsistent 
 13.12  with or conflict with the adopted comprehensive municipal plan.  
 13.13  If a comprehensive municipal plan is in conflict with an 
 13.14  official control, the official control must be brought into 
 13.15  conformance with the plan by the governing body.  The plan must 
 13.16  provide guidelines for the timing and sequence of the adoption 
 13.17  of official controls to ensure planned, orderly, and staged 
 13.18  development and redevelopment consistent with the plan. 
 13.19     Sec. 15.  [APPROPRIATION.] 
 13.20     $....... is appropriated from the general fund to the 
 13.21  office of strategic and long-range planning for the purposes of 
 13.22  making grants to local governmental units outside the 
 13.23  metropolitan area for planning required by this act.