1.1                          A bill for an act 
  1.2             relating to municipalities; clarifying the use of 
  1.3             alternative dispute resolution in certain proceedings; 
  1.4             requiring special procedures to implement annexation 
  1.5             of substantially all of a town; instructing the 
  1.6             revisor; requiring a report; providing for retroactive 
  1.7             effect, with an exception; allocating certain costs; 
  1.8             repealing a certain alternative dispute procedure; 
  1.9             amending Minnesota Statutes 1999 Supplement, section 
  1.10            414.12; proposing coding for new law in Minnesota 
  1.11            Statutes, chapter 414; repealing Minnesota Statutes 
  1.12            1998, section 414.10. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.15  414.12, is amended to read: 
  1.16     414.12 [DIRECTOR'S POWERS.] 
  1.17     Subdivision 1.  [ALTERNATIVE DISPUTE RESOLUTION.] 
  1.18  Notwithstanding anything to the contrary in sections 414.01 to 
  1.19  414.11, the director of the office of strategic and long-range 
  1.20  planning, upon consultation with affected parties and 
  1.21  considering the procedures and principles established in 
  1.22  sections 414.01 to 414.11, and Laws 1997, chapter 202, article 
  1.23  4, sections 1 to 13, may require that disputes over proposed 
  1.24  boundary adjustments be resolved by means of alternative dispute 
  1.25  resolution processes in place of hearings that would otherwise 
  1.26  be required pursuant to sections 414.01 to 414.09, including 
  1.27  those provided in chapter 14, in the execution of the office's 
  1.28  duties under this chapter.  Alternative dispute resolution 
  1.29  processes that may be required include: 
  2.1      (1) the contested case procedures provided by sections 
  2.2   14.57 to 14.62; 
  2.3      (2) the mediation and arbitration process provided by 
  2.4   sections 572A.015 to 572A.03; or 
  2.5      (3) another mediation and arbitration process ordered by 
  2.6   the director.  
  2.7      Subd. 2.  [DELEGATION OF AUTHORITY.] The director may, with 
  2.8   the agreement of the chief administrative law judge, delegate to 
  2.9   the office of administrative hearings, in any individual case or 
  2.10  group of cases, the director's authority and responsibility to 
  2.11  conduct hearings and issue final orders under sections 414.01 to 
  2.12  414.09.  In the case of detachment of lands from a municipality, 
  2.13  if the parties do not agree to resolve a boundary adjustment 
  2.14  matter by mediation or arbitration, then the case shall be 
  2.15  referred to an administrative law judge to conduct hearings and 
  2.16  issue final orders under sections 414.01 to 414.09. 
  2.17     Subd. 3.  [COST OF PROCEEDINGS.] The parties to any matter 
  2.18  directed to alternative dispute resolution under subdivision 1 
  2.19  or delegated to the office of administrative hearings under 
  2.20  subdivision 2 must pay the costs of the alternative dispute 
  2.21  resolution process or hearing in the proportions that they agree 
  2.22  to.  Notwithstanding section 14.53 or other law, the office of 
  2.23  strategic and long-range planning is not liable for the costs.  
  2.24  If the parties do not agree to a division of the costs before 
  2.25  the commencement of mediation, arbitration, or hearing, the 
  2.26  costs must be allocated on an equitable basis by the mediator, 
  2.27  arbitrator, or chief administrative law judge.  
  2.28     Subd. 4.  [PARTIES.] In this section, "party" means: 
  2.29     (1) a property owner, group of property owners, 
  2.30  municipality, or township that files an initiating document or 
  2.31  timely objection under this chapter; 
  2.32     (2) the municipality or township within which the subject 
  2.33  area is located; 
  2.34     (3) a municipality abutting the subject area; and 
  2.35     (4) any other person, group of persons, or governmental 
  2.36  agency residing in, owning property in, or exercising 
  3.1   jurisdiction over the subject area that files with the director 
  3.2   a notice of appearance within 14 days of publication of the 
  3.3   notice required by section 414.09. 
  3.4      Sec. 2.  [414.13] [REFERENDUM ON IMPLEMENTATION WHEN 
  3.5   ANNEXING AN ENTIRE TOWN.] 
  3.6      Subdivision 1.  [APPLICATION.] Notwithstanding any other 
  3.7   provision to the contrary, this section applies if the final 
  3.8   order, decision, or award in a boundary adjustment matter under 
  3.9   this chapter provides for the annexation of over 90 percent of 
  3.10  the area of a town. 
  3.11     Subd. 2.  [RESOLUTIONS FOR IMPLEMENTATION.] Within 60 days 
  3.12  of a final order, decision, or award, the city and the town 
  3.13  shall each prepare a plan for transition to and for the final 
  3.14  city council structure and membership.  If either the city or 
  3.15  the town does not prepare a plan, the director of the office of 
  3.16  strategic and long-range planning must prepare a plan for the 
  3.17  city or town.  The maximum amount of time the transition may 
  3.18  take is no longer than the longest remaining term of any city 
  3.19  council member or town board officer in office at the time the 
  3.20  final order, award, or decision is made. 
  3.21     Subd. 3.  [NO ELECTION REQUIRED.] If the two plans are 
  3.22  identical, they must be implemented according to the plan 
  3.23  without an election.  If neither the city nor town prepare a 
  3.24  plan, the director of the office of strategic and long-range 
  3.25  planning shall prepare the plan and it must be implemented 
  3.26  without an election. 
  3.27     Subd. 4.  [ELECTION REQUIRED.] Within 180 days of a final 
  3.28  order, decision, or award, an election must be held to determine 
  3.29  which of the two plans will be implemented.  Both plans must be 
  3.30  put before the voters in both the city and the area of the town 
  3.31  being annexed and the plan that receives the majority of the 
  3.32  votes must be implemented, beginning immediately after the 
  3.33  election. 
  3.34     Sec. 3.  [REPORT TO LEGISLATURE.] 
  3.35     The director of the office of strategic and long-range 
  3.36  planning must report to the senate committee on local and 
  4.1   metropolitan government and the house of representatives 
  4.2   committee on local government and metropolitan affairs by 
  4.3   February 1, 2002, on the effect of the transfer to the office of 
  4.4   authority and duties under Minnesota Statutes, chapter 414.  The 
  4.5   report must describe the successes and failures of the processes 
  4.6   in resolving disputes, and include the comments, suggestions, 
  4.7   and criticisms of the processes from local governments that have 
  4.8   participated in the processes, interested associations 
  4.9   representing local governments, administrative law judges that 
  4.10  have presided over boundary adjustment matters, private property 
  4.11  protection organizations, and the office of administrative 
  4.12  hearings.  The office of strategic and long-range planning may 
  4.13  adopt or amend rules governing use of mediation and arbitration 
  4.14  in boundary adjustment disputes.  Until May 1, 2002, these rules 
  4.15  are exempt from chapter 14. 
  4.16     Sec. 4.  [REVISOR INSTRUCTION.] 
  4.17     The revisor of statutes is directed to prepare legislation 
  4.18  for the 2001 legislative session that makes changes to Minnesota 
  4.19  Statutes, chapter 414, to reflect the transfer of powers and 
  4.20  duties from the Minnesota municipal board, now abolished, to the 
  4.21  office of strategic and long-range planning.  In preparing the 
  4.22  legislation, the revisor may consult with any interested 
  4.23  person.  The revisor shall provide the preliminary draft 
  4.24  legislation to the chairs of the house local government and 
  4.25  metropolitan affairs committee and the senate local and 
  4.26  metropolitan government committee. 
  4.27     Sec. 5.  [REPEALER.] 
  4.28     Minnesota Statutes 1998, section 414.10, is repealed. 
  4.29     Sec. 6.  [EFFECTIVE DATES.] 
  4.30     Subdivision 1.  [PROCEEDINGS.] Section 1, subdivisions 1, 
  4.31  2, and 4, are effective retroactive to June 1, 1999, and apply 
  4.32  to all matters pending on or commenced on or after that date.  
  4.33  Section 3 is effective the day following final enactment.  
  4.34     Subd. 2.  [COSTS.] Section 1, subdivision 3, is effective 
  4.35  retroactive to June 1, 1999, and applies only to boundary 
  4.36  adjustment matters commenced on or after June 1, 1999, except 
  5.1   for the city of St. Cloud which is responsible for its costs as 
  5.2   provided in section 1, subdivision 3, in the boundary adjustment 
  5.3   matter with the town of St. Augusta.  For all other boundary 
  5.4   adjustment matters commenced before June 1, 1999, all costs must 
  5.5   be allocated as provided in law and rule prior to the abolition 
  5.6   of the Minnesota municipal board, and the maximum total amount 
  5.7   the parties may be charged by the office of strategic and 
  5.8   long-range planning, the office of administrative hearings, or 
  5.9   as part of an arbitration is no more than the Minnesota 
  5.10  municipal board could have charged if the matter had been heard 
  5.11  and decided by the board.  Costs that exceed what the municipal 
  5.12  board could have charged must be paid by the office of strategic 
  5.13  and long-range planning.