1.1                          A bill for an act 
  1.2             relating to municipalities; allowing the prescribing 
  1.3             of certain fees by a fee schedule; amending Minnesota 
  1.4             Statutes 2002, section 462.353, subdivision 4, by 
  1.5             adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 462.353, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [FEES.] A municipality may prescribe fees 
  1.10  sufficient to defray the costs incurred by it in reviewing, 
  1.11  investigating, and administering an application for an amendment 
  1.12  to an official control established pursuant to sections 462.351 
  1.13  to 462.364 or an application for a permit or other approval 
  1.14  required under an official control established pursuant to those 
  1.15  sections.  Except as provided in subdivision 4a, fees as 
  1.16  prescribed must be by ordinance and.  Fees must be fair, 
  1.17  reasonable, and proportionate to the actual cost of the service 
  1.18  for which the fee is imposed.  A municipality shall adopt 
  1.19  management and accounting procedures to ensure that fees are 
  1.20  maintained and used only for the purpose for which they are 
  1.21  collected. 
  1.22     If a dispute arises over a specific fee imposed by a 
  1.23  municipality related to a specific application, the amount of 
  1.24  the fee must be deposited and held in escrow, and the person 
  1.25  aggrieved by the fee may appeal under section 462.361.  An 
  2.1   approved application may proceed as if the fee had been paid, 
  2.2   pending a decision on the appeal.  
  2.3      Sec. 2.  Minnesota Statutes 2002, section 462.353, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 4a.  [FEE SCHEDULE ALLOWED.] A municipality that 
  2.6   collects an annual cumulative total of $5,000 or less in fees 
  2.7   under this section may prescribe the fees or refer to a fee 
  2.8   schedule in the ordinance governing the official control or 
  2.9   permit.  A municipality may adopt a fee schedule under this 
  2.10  subdivision by ordinance or resolution, either annually or more 
  2.11  frequently, following publication of notice of proposed action 
  2.12  on a fee schedule at least ten days prior to a public hearing 
  2.13  held to consider action on or approval of the fee schedule.  A 
  2.14  municipality that collects a cumulative total in excess of 
  2.15  $5,000 in fees under this section may prescribe a fee schedule 
  2.16  by ordinance by following the notice and hearing procedures 
  2.17  specified in this subdivision.