as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 08/14/1998 |
1.1 A bill for an act 1.2 relating to local government; transferring authority 1.3 for incorporations, detachments, and annexations to 1.4 the office of strategic and long-range planning and 1.5 the office of administrative hearings; appropriating 1.6 money; amending Minnesota Statutes 1994, sections 1.7 14.03, subdivision 2; 414.01, subdivisions 1, 14, 15, 1.8 16, 17, and by adding a subdivision; 414.011, 1.9 subdivisions 7 and 8; 414.012; 414.02; 414.031; 1.10 414.0325; 414.033; 414.035; 414.036; 414.041; 414.051; 1.11 414.06; 414.061; 414.063; 414.067; 414.07; and 414.09; 1.12 repealing Minnesota Statutes 1994, sections 414.01, 1.13 subdivisions 2, 3, 3a, 4, 5, 6a, 7a, 8, 10, 11, and 1.14 12; and 414.08. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 Section 1. [TRANSFER OF AUTHORITY AND DUTIES.] 1.17 The authority and duties of the Minnesota municipal board 1.18 are transferred to the office of strategic and long-range 1.19 planning and to the office of administrative hearings, as 1.20 provided in sections 2 to 25. The transfers are subject to 1.21 Minnesota Statutes, section 15.039, with the exception of 1.22 subdivision 7, which does not apply. 1.23 Sec. 2. Minnesota Statutes 1994, section 14.03, 1.24 subdivision 2, is amended to read: 1.25 Subd. 2. [CONTESTED CASE PROCEDURES.] The contested case 1.26 procedures of the administrative procedure act provided in 1.27 sections 14.57 to 14.69 do not apply to (a)the Minnesota1.28municipal board, (b)the commissioner of corrections,(c)(b) 1.29 the unemployment insurance program and the social security 1.30 disability determination program in the department of economic 2.1 security,(d)(c) the commissioner of mediation services, 2.2(e)(d) the workers' compensation division in the department of 2.3 labor and industry,(f)(e) the workers' compensation court of 2.4 appeals, or(g)(f) the board of pardons. 2.5 Sec. 3. Minnesota Statutes 1994, section 414.01, 2.6 subdivision 1, is amended to read: 2.7 Subdivision 1.A board to be known as the Minnesota2.8municipal board is hereby created to conduct proceedings and2.9issue orders for the creation of a municipality, the combination2.10of two or more governmental units, or the alteration of a2.11municipal boundary.2.12 The legislature finds that: (1) sound urban development 2.13 and preservation of agricultural land and open spaces through 2.14 land use planning is essential to the continued economic growth 2.15 of this state; (2) municipal government most efficiently 2.16 provides governmental services in areas intensively developed 2.17 for residential, commercial, industrial, and governmental 2.18 purposes; and township government most efficiently provides 2.19 governmental services in areas used or developed for 2.20 agricultural, open space, and rural residential purposes; (3) 2.21 the public interest requires that municipalities be formed when 2.22 there exists or will likely exist the necessary resources to 2.23 provide for their economical and efficient operation; (4) 2.24 annexation to existing municipalities of unincorporated areas 2.25 unable to supply municipal services should be facilitated; and, 2.26 (5) the consolidation of municipalities should be 2.27 encouraged.It isThepurposepurposes of this chapterto2.28empower the Minnesota municipal board toare as follows: (i) 2.29 promote and regulate development of municipalities to provide 2.30 for the extension of municipal government to areas which are 2.31 developed or are in the process of being developed for intensive 2.32 use for residential, commercial, industrial, institutional, and 2.33 governmental purposes or are needed for such purposes;and to2.34 (ii) protect the stability of unincorporated areas which are 2.35 used or developed for agricultural, open space, and rural 2.36 residential purposes and are not presently needed for more 3.1 intensive uses; andto(iii) protect the integrity of land use 3.2 planning in municipalities and unincorporated areas so that the 3.3 public interest in efficient local government will be properly 3.4 recognized and served. 3.5 Sec. 4. Minnesota Statutes 1994, section 414.01, is 3.6 amended by adding a subdivision to read: 3.7 Subd. 12a. [ORDERS.] If no objection is made to the office 3.8 of strategic and long-range planning to a proposed detachment or 3.9 annexation under this chapter within 30 days from the office's 3.10 receipt of a petition or resolution, the office shall order 3.11 action as requested in the petition or resolution. If an 3.12 objection is made, or if a matter has been referred pursuant to 3.13 law to the office of administrative hearings, the matter shall 3.14 be determined by order of an administrative law judge. The 3.15 order of the administrative law judge is final, subject to 3.16 judicial review as provided in section 414.07. The office of 3.17 administrative hearings shall, when hearing a matter under this 3.18 chapter, proceed as in a contested case subject to chapter 14, 3.19 except as is necessary to conform to the requirements of this 3.20 chapter. 3.21 Sec. 5. Minnesota Statutes 1994, section 414.01, 3.22 subdivision 14, is amended to read: 3.23 Subd. 14. Whena boardan order enlarges or diminishes the 3.24 area of an existing municipality or town, the population of the 3.25 annexed or detached area shall be as foundby the boardatits3.26 the hearing or, in cases in which no hearingby the boardfor 3.27 the boundary change is required, as stated in the resolution or 3.28 ordinance. The effective date of the population change shall be 3.29 the same as the effective date of the order whether or not the 3.30 order is from a hearing or from the approval of an annexation 3.31 resolution or ordinance. Theboardoffice of strategic and 3.32 long-range planning or the administrative law judge shall 3.33 communicateitsthe population finding to the state demographer 3.34 who shall incorporate that data into the population estimate for 3.35 the municipality or town. When a new municipality is created by 3.36 an orderof the board, the municipality shall request a 4.1 separation census from the United States bureau of the census 4.2 and bear any costs incurred. 4.3 Sec. 6. Minnesota Statutes 1994, section 414.01, 4.4 subdivision 15, is amended to read: 4.5 Subd. 15. Whena boardan order enlarges an existing 4.6 municipality or creates a new municipality, theboardoffice of 4.7 strategic and long-range planning or the administrative law 4.8 judge may indicate initsthe order the estimated increased 4.9 costs to the municipality as the result of the boundary 4.10 adjustment, and the time period that the municipality would be 4.11 allowed a levy for these increased costs. 4.12 Sec. 7. Minnesota Statutes 1994, section 414.01, 4.13 subdivision 16, is amended to read: 4.14 Subd. 16. In a proceedingbefore the board, theboard4.15 administrative law judge may require that representatives from 4.16 the involved city, town, and county or other entity meet 4.17 together to discuss the resolution of issues raised at the 4.18 hearingbefore the boardand other issues of mutual concern. 4.19 Theboardjudge may require that the parties meet at least three 4.20 times during a 60-day period. The parties shall designate a 4.21 person to report to theboardjudge on the results of the 4.22 meetings immediately after the last meeting. 4.23 Sec. 8. Minnesota Statutes 1994, section 414.01, 4.24 subdivision 17, is amended to read: 4.25 Subd. 17. [DATA FROM STATE AGENCIES.] Theboardoffice of 4.26 strategic and long-range planning or the office of 4.27 administrative hearings may request information from any state 4.28 department or agency in order to assistit to carry out itsan 4.29 office in the performance of its duties. The department or 4.30 agency shall promptly furnish the requested information to 4.31 theboardrequesting office. 4.32 Sec. 9. Minnesota Statutes 1994, section 414.011, 4.33 subdivision 7, is amended to read: 4.34 Subd. 7. "Boundary adjustment" means any proceedingby the4.35municipal boardauthorized by this chapter. 4.36 Sec. 10. Minnesota Statutes 1994, section 414.011, 5.1 subdivision 8, is amended to read: 5.2 Subd. 8. "Meetings" and "hearings" includes, but is not 5.3 limited to,boarddeliberations by electronic media. 5.4 Sec. 11. Minnesota Statutes 1994, section 414.012, is 5.5 amended to read: 5.6 414.012 [MAPS.] 5.7 Subdivision 1. [CORPORATE BOUNDARY MAP.] A municipality 5.8 initiating any boundary adjustment authorized by this chapter 5.9 shall file with themunicipal boardoffice of strategic and 5.10 long-range planning a corporate boundary map. Any proposed 5.11 boundary adjustment shall be delineated on a copy of the 5.12 corporate boundary map. 5.13 Subd. 2. [PLAT MAPS.] Any party initiating a boundary 5.14 adjustment, which includes platted land, shall file with the 5.15municipal boardoffice maps which are necessary to support and 5.16 identify the land description. The maps shall include copies of 5.17 plats. 5.18 Sec. 12. Minnesota Statutes 1994, section 414.02, is 5.19 amended to read: 5.20 414.02 [MUNICIPAL INCORPORATION.] 5.21 Subdivision 1. [INITIATING THE INCORPORATION PROCEEDINGS.] 5.22 This section provides the exclusive method of incorporating a 5.23 municipality in Minnesota. Proceedings for incorporation of a 5.24 municipality may be initiated by petition of 100 or more 5.25 property owners or by resolution of the town board within an 5.26 area which is not included within the limits of any incorporated 5.27 municipality and which area includes land that has been platted 5.28 into lots and blocks in the manner provided by law. The 5.29 petition or resolution shall be submitted to theexecutive5.30directoroffice of strategic and long-range planning and shall 5.31 state the proposed name of the municipality, the names of all 5.32 parties entitled to mailed notice under section 414.09, the 5.33 reason for requesting incorporation, and shall include a 5.34 proposed corporate boundary map. 5.35 Subd. 2. [BOARD'SHEARING AND NOTICE.] Upon receipt of a 5.36 petition or resolution made pursuant to subdivision 1, 6.1 theexecutive director of the boardoffice shall inform the 6.2 office of administrative hearings which shall designate a time 6.3 and place for a hearing in accordance with section 414.09. 6.4 Subd. 3. [BOARD'SORDER.] In arriving atitsa decision, 6.5 theboardadministrative law judge shall consider the following 6.6 factors: 6.7 (a) Present population, past population growth and 6.8 projected population for the area; 6.9 (b) Quantity of land, both platted and unplatted, within 6.10 the area proposed for incorporation; the natural terrain of the 6.11 area including general topography, major watersheds, soil 6.12 conditions and such natural features as rivers, lakes and major 6.13 bluffs; 6.14 (c) Present pattern of physical development in the area 6.15 including residential, industrial, commercial, agricultural and 6.16 institutional land uses; the present transportation network and 6.17 potential transportation issues, including proposed highway 6.18 development; 6.19 (d) Land use controls and planning presently being utilized 6.20 in the area, including comprehensive plans for development in 6.21 the area and policies of the metropolitan council. If there is 6.22 an inconsistency between the proposed development and the land 6.23 use planning ordinance in force, the reason for the 6.24 inconsistency; 6.25 (e) Present governmental services being provided to the 6.26 area, including water and sewer service, fire rating and 6.27 protection, police protection, street improvements and 6.28 maintenance, administrative services, and recreational 6.29 facilities; 6.30 (f) Existing or potential problems of environmental 6.31 pollution and the need for additional services to resolve these 6.32 problems; 6.33 (g) Fiscal data of the area, including the net tax capacity 6.34 of both platted and unplatted lands and the division between 6.35 homestead and nonhomestead property, and the present bonded 6.36 indebtedness; and the local tax rates of the county, school 7.1 district, and township; 7.2 (h) Relationship and effect of the proposed incorporation 7.3 on communities adjacent to the area and on school districts 7.4 within and adjacent to the area; 7.5 (i) Adequacy of town government to deliver services to the 7.6 area; and 7.7 (j) Analysis of whether necessary governmental services can 7.8 best be provided through incorporation or annexation to an 7.9 adjacent municipality. 7.10 Based upon these factors, theboard mayjudge shall order 7.11 the incorporationif it findsupon finding that (a) the property 7.12 to be incorporated is now, or is about to become, urban or 7.13 suburban in character, or (b) that the existing township form of 7.14 government is not adequate to protect the public health, safety, 7.15 and welfare, or (c) the proposed incorporation would be in the 7.16 best interests of the area under consideration. Theboardjudge 7.17 may deny the incorporation if the area, or a part thereof, would 7.18 be better served by annexation to an adjacent municipality. 7.19 Theboardjudge may alter the boundaries of the proposed 7.20 incorporation by increasing or decreasing the area to be 7.21 incorporated so as to include only that property which is now, 7.22 or is about to become, urban or suburban in character, or may 7.23 exclude property that may be better served by another unit of 7.24 government. In all cases, theboardjudge shall set forth the 7.25 factors which are the basis for the decision. 7.26 Notwithstanding any other provision of law to the contrary 7.27 relating to the number of wards which may be established, the 7.28boardjudge may provide for election of council members by 7.29 wards, not less than three nor more than seven in number, whose 7.30 limits are prescribed in theboardorder upon a finding that 7.31 area representation is required to accord proper representation 7.32 in the proposed incorporated area because of uneven population 7.33 density in different parts thereof or the existence of 7.34 agricultural lands therein which are in the path of suburban 7.35 development, but after four years from the effective date of an 7.36 incorporation the council of the municipality may by resolution 8.1 adopted by a four-fifths vote abolish the ward system and 8.2 provide for the election of all council members at large as in 8.3 other municipalities. 8.4 Theboard'sorder for incorporation shall provide for the 8.5 election of municipal officers in accordance with section 8.6 414.09. The plan of government shall be "Optional Plan A", 8.7 provided that an alternate plan may be adopted pursuant to 8.8 section 412.551, at any time. The ordinances of the township in 8.9 which the new municipality is located shall continue in effect 8.10 until repealed by the governing body of the new municipality. 8.11 Subd. 4. [EFFECTIVE DATE OF INCORPORATION.] The 8.12 incorporation shall be effective upon the election and 8.13 qualification of new municipal officers or on such later date as 8.14 is fixed by theboard in itsorder. 8.15 Sec. 13. Minnesota Statutes 1994, section 414.031, is 8.16 amended to read: 8.17 414.031 [ANNEXATION OF UNINCORPORATED PROPERTY TO A 8.18 MUNICIPALITY BYBOARDORDER.] 8.19 Subdivision 1. [INITIATING THE PROCEEDING.] A proceeding 8.20 for the annexation of unincorporated property abutting a 8.21 municipality may be initiated by submitting to theexecutive8.22directoroffice of strategic and long-range planning and the 8.23 affected township one of the following: 8.24 (a) A resolution of the annexing municipality; 8.25 (b) A resolution of the township containing the area 8.26 proposed for annexation; 8.27 (c) A petition of 20 percent of the property owners or 100 8.28 property owners, whichever is less, in the area to be annexed; 8.29 (d) A resolution of the municipal council together with a 8.30 resolution of the township board stating their desire to have 8.31 the entire township annexed to the municipality. 8.32 The petition, or resolution shall set forth the boundaries 8.33 of the territory proposed for annexation, the names of all 8.34 parties entitled to notice under section 414.09, and the reasons 8.35 for requesting annexation. If the proceeding is initiated by a 8.36 petition of property owners, the petition shall be accompanied 9.1 by a resolution of the annexing municipality supporting the 9.2 petition. 9.3 Subd. 3. [BOARD'SHEARING AND NOTICE.] Upon receipt of a 9.4 timely objection to a petition or resolution initiating an 9.5 annexation, theexecutive directoroffice of strategic and 9.6 long-range planning shall designate a time and a place for a 9.7 hearing in accordance with section 414.09. If no timely 9.8 objection is received, the office shall order the annexation as 9.9 requested by the petition or resolution. 9.10 Subd. 4. [BOARD'SORDER.] In arriving atitsa decision, 9.11 theboardadministrative law judge shall consider the following 9.12 factors: 9.13 (a) Present population, past population growth and 9.14 projected population of the property proposed for annexation and 9.15 the annexing municipality; 9.16 (b) Quantity of land within the property proposed for 9.17 annexation and the annexing municipality; and natural terrain 9.18 including general topography, major watersheds, soil conditions 9.19 and such natural features as rivers, lakes and major bluffs; 9.20 (c) Degree of contiguity of the boundaries between the 9.21 annexing municipality and the property proposed for annexation; 9.22 (d) Present pattern of physical development of the property 9.23 proposed for annexation and the annexing municipality including 9.24 residential, industrial, commercial, agricultural and 9.25 institutional land uses; the present transportation network and 9.26 potential transportation issues, including proposed highway 9.27 development; 9.28 (e) Land use controls and planning presently being utilized 9.29 in the annexing municipality and the property proposed for 9.30 annexation, including comprehensive plans for development in the 9.31 area and plans and policies of the metropolitan council. If 9.32 there is an inconsistency between the proposed development and 9.33 the land use planning ordinance in force, the reason for the 9.34 inconsistency; 9.35 (f) Present governmental services being provided in the 9.36 annexing municipality and the property proposed for annexation, 10.1 including water and sewer service, fire rating and protection, 10.2 police protection, street improvements and maintenance, 10.3 administrative services, and recreational facilities; 10.4 (g) Existing or potential problems of environmental 10.5 pollution and the need for additional services to resolve these 10.6 problems; 10.7 (h) Plans and programs by the annexing municipality for 10.8 providing needed governmental services to the property proposed 10.9 for annexation; 10.10 (i) Fiscal data of the annexing municipality and the 10.11 property proposed for annexation, including net tax capacity and 10.12 the present bonded indebtedness, and the local tax rates of the 10.13 county, school district, and township; 10.14 (j) Relationship and effect of the proposed annexation on 10.15 communities adjacent to the area and on school districts within 10.16 and adjacent to the area; 10.17 (k) Adequacy of town government to deliver services to the 10.18 property proposed for annexation; 10.19 (l) Analysis of whether necessary governmental services can 10.20 best be provided through incorporation or annexation to an 10.21 adjacent municipality; and 10.22 (m) If only a part of a township is annexed, the ability of 10.23 the remainder of the township to continue or the feasibility of 10.24 it being incorporated separately or being annexed to another 10.25 municipality. 10.26 Based upon these factors, theboard mayjudge shall order 10.27 the annexation upon finding that (a)if it finds thatthe 10.28 property proposed for annexation is now, or is about to become, 10.29 urban or suburban in character, or (b)if it finds that10.30 municipal government in the area proposed for annexation is 10.31 required to protect the public health, safety, and welfare, or 10.32 (c)if it finds thatthe annexation would be in the best 10.33 interest of the property proposed for annexation.If only a10.34part of a township is to be annexed, the board shall consider10.35whether the remainder of the township can continue to carry on10.36the functions of government without undue hardship. The board11.1shall deny the annexation if it finds that the increase in11.2revenues for the annexing municipality bears no reasonable11.3relation to the monetary value of benefits conferred upon the11.4annexed area.Theboardjudge may deny the annexation(a)if it 11.5 appears that annexation of all or a part of the property to an 11.6 adjacent municipality would better serve the interests of the 11.7 residents of the propertyor (b) if the remainder of the11.8township would suffer undue hardship. 11.9 Theboardjudge may alter the boundaries of the area to be 11.10 annexed by increasing or decreasing the area so as to include 11.11 only that property which is now or is about to become urban or 11.12 suburban in character or to add property of such character 11.13 abutting the area proposed for annexation in order to preserve 11.14 or improve the symmetry of the area, or to exclude property that 11.15 may better be served by another unit of government. If the 11.16boardjudge determines that part of the area would be better 11.17 served by another municipality or township, theboardjudge may 11.18 initiate and approve annexation onitsthe judge's own motion by 11.19 conducting further hearings and issuing orders pursuant to 11.20 subdivisions 3, 4, and 5. In all cases, theboardjudge shall 11.21 set forth the factors which are the basis for the decision. 11.22 Subd. 4a. [PROCEEDINGS INITIATED BY JOINT RESOLUTION.] If 11.23 the proceeding has been initiated under subdivision 1, clause 11.24 (d), any annexation order shall include a provision for the 11.25 election of new municipal officers in accordance with section 11.26 414.09. The expanded municipality shall be governed by the home 11.27 rule charter or statutory form which governs the annexing 11.28 municipality, except that any ward system for the election of 11.29 council members shall be inoperable. The ordinances of both the 11.30 annexing municipality and the township shall continue in effect 11.31 within the former boundaries until repealed by the governing 11.32 body of the new municipality. 11.33 Notwithstanding any other provision of law to the contrary 11.34 theboardjudge may provide for election of council members by 11.35 wards, not less than three nor more than seven in number, whose 11.36 limits are prescribed in theboardorder, upon a finding that 12.1 area representation is required to accord proper representation 12.2 in the municipality because of uneven population density in 12.3 different parts thereof or the existence of agricultural lands 12.4 therein which are in the path of suburban development; but after 12.5 four years from the effective date of an annexation the council 12.6 of the municipality may by resolution adopted by a four-fifths 12.7 vote abolish the ward system and provide for the election of all 12.8 council members at large. 12.9 Until the effective date of the annexation order, the town 12.10 board and other officers of the town shall continue to exercise 12.11 their powers and duties under the town laws in that portion of 12.12 the municipality that was formerly the town, and the council and 12.13 other officers of the annexing municipality shall continue to 12.14 exercise their powers and duties in that portion of the expanded 12.15 municipality that was formerly the municipality. Thereafter the 12.16 town board and the council of the annexing municipality shall 12.17 have no jurisdiction within the municipality, and the new 12.18 municipal council and other new officers shall act in respect to 12.19 any matters previously undertaken by the town board of 12.20 supervisors or municipal council within the limits of the 12.21 expanded municipality, including the making of any improvement 12.22 and the levying of any special assessments therefor in the same 12.23 manner and to the same effect as if such improvement had been 12.24 undertaken by the municipality. 12.25 The new municipal council may continue or discontinue any 12.26 board that may have previously existed in the town or former 12.27 municipality. 12.28 Subd. 6. [EFFECTIVE DATE OF ANNEXATION.] The annexation 12.29 shall be effective as of the date fixed in the annexation order 12.30 or on such later date as is fixed in the annexation order. A 12.31 copy of the annexation order must be delivered immediately by 12.32 theexecutive director of the Minnesota municipal boardoffice 12.33 of strategic and long-range planning or the administrative law 12.34 judge to the appropriate county auditor or auditors. For the 12.35 purposes of taxation, if the annexation becomes effective on or 12.36 before August 1 of a levy year, the municipality may levy on the 13.1 annexed area beginning with that same levy year. If the 13.2 annexation becomes effective after August 1 of a levy year, the 13.3 town may continue to levy on the annexed area for that levy 13.4 year, and the municipality may not levy on the annexed area 13.5 until the following levy year. 13.6 Sec. 14. Minnesota Statutes 1994, section 414.0325, is 13.7 amended to read: 13.8 414.0325 [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 13.9 Subdivision 1. [INITIATING THE PROCEEDING.] One or more 13.10 townships and one or more municipalities, by joint resolution, 13.11 may designate an unincorporated area as in need of orderly 13.12 annexation and may confer jurisdiction: (1) on theboardoffice 13.13 of strategic and long-range planning, or (2) if the resolution 13.14 is adopted before July 1, 1995, and the resolution requests a 13.15 hearing but is not heard before July 1, 1995, on the office of 13.16 administrative hearings, over annexations in the designated area 13.17 and over the various provisions in said agreement by submission 13.18 of said joint resolution to theexecutive directoroffice of 13.19 strategic and long-range planning. The resolution shall include 13.20 a description of the designated area. Thereafter, an annexation 13.21 of any part of the designated area may be initiated by 13.22 submitting to theexecutive directoroffice of strategic and 13.23 long-range planning or, if the joint resolution requests a 13.24 hearing, to the office of administrative hearings, a resolution 13.25 of any signatory to the joint resolution or by theboardoffice 13.26 of strategic and long-range planning of its own motion. 13.27 Whenever the pollution control agency or other state agency 13.28 pursuant to sections 115.03, 115.071, 115.49, or any law giving 13.29 a state agency similar powers, orders a municipality to extend a 13.30 municipal service to a designated unincorporated area, such an 13.31 order will confer jurisdiction on theMinnesota municipal13.32boardoffice of strategic and long-range planning toconsider13.33 refer the matter to the office of administrative hearings for 13.34 determination, by order of an administrative law judge, of the 13.35 designation of the area for orderly annexation. 13.36 If a joint resolution designates an area as in need of 14.1 orderly annexation and states that no alteration of its stated 14.2 boundaries is appropriate, theboardoffice of strategic and 14.3 long-range planning or the administrative law judge may review 14.4 and comment, but may not alter the boundaries. 14.5 If a joint resolution designates an area as in need of 14.6 orderly annexation, provides for the conditions for its 14.7 annexation, and states that no consideration by theboardoffice 14.8 of strategic and long-range planning is necessary, theboard14.9 office of strategic and long-range planning may review and 14.10 comment, but shall, within 30 days, order the annexation in 14.11 accordance with the terms of the resolution. 14.12Subd. 1a. [ORDERLY ANNEXATION BY PETITION.] If the board14.13receives a petition for annexation of an area owned by a14.14municipality or from all of the property owners in an area, and14.15the area is within two miles of the corporate boundaries of the14.16municipality, the petition shall confer jurisdiction on the14.17board to consider designation of the area for orderly annexation.14.18Upon receipt of the petition, the board shall inform the14.19affected parties of their opportunity to request a hearing14.20before the board on the petition, and if a hearing is requested,14.21it must be held within 60 days of the request. Any person14.22aggrieved by the board's designation of an area as appropriate14.23for orderly annexation may appeal the board's order to district14.24court in accordance with section 414.07.14.25At least 60 days before a petition is filed, the petitioner14.26must notify the municipality that the petitioner intends to file14.27a petition for annexation. At least 30 days before a petition14.28is filed for annexation under this subdivision or section14.29414.033, the petitioner must be notified by the municipality14.30that the cost of electric utility service to the petitioner may14.31change if the land is annexed to the municipality. The notice14.32must include an estimate of the cost impact of any change in14.33electric utility services, including rate changes and14.34assessments, resulting from the annexation.14.35 Subd. 2. [BOARD'SHEARING AND NOTICE; TRANSITIONAL 14.36 PROVISION.] Upon receipt of a joint resolution for annexationof15.1a part of the designated areaunder this section that is adopted 15.2 before July 1, 1995, and the resolution requests a hearing but 15.3 the matter is not heard before July 1, 1995, theexecutive15.4directoroffice of strategic and long-range planning shall 15.5 inform the office of administrative hearings which shall set a 15.6 time and place for a hearing in accordance with section 414.09. 15.7 No joint resolution adopted under this section after June 30, 15.8 1995, may request a hearing. 15.9 Subd. 3. [BOARD'SORDER.] In arriving at its decision, the 15.10boardadministrative law judge shall consider the following 15.11 factors: 15.12 (a) Present population, past population growth and 15.13 projected population of the property proposed for annexation and 15.14 the annexing municipality; 15.15 (b) Quantity of land within the property proposed for 15.16 annexation and the annexing municipality; and natural terrain 15.17 including general topography, major watersheds, soil conditions 15.18 and such natural features as rivers, lakes and major bluffs; 15.19 (c) Degree of contiguity of the boundaries between the 15.20 annexing municipality and the property proposed for annexation; 15.21 (d) Present pattern of physical development of the property 15.22 proposed for annexation and the annexing municipality including 15.23 residential, industrial, commercial, agricultural and 15.24 institutional land uses; the present transportation network and 15.25 potential transportation issues, including proposed highway 15.26 development; 15.27 (e) Land use controls and planning presently being utilized 15.28 in the annexing municipality and the property proposed for 15.29 annexation, including comprehensive plans for development in the 15.30 area and plans and policies of the metropolitan council. If 15.31 there is an inconsistency between the proposed development and 15.32 the land use planning ordinance in force, the reason for the 15.33 inconsistency; 15.34 (f) Present governmental services being provided in the 15.35 annexing municipality and the property proposed for annexation, 15.36 including water and sewer service, fire rating and protection, 16.1 police protection, street improvements and maintenance, 16.2 administrative services, and recreational facilities; 16.3 (g) Existing or potential problems of environmental 16.4 pollution and the need for additional services to resolve these 16.5 problems; 16.6 (h) Plans and programs by the annexing municipality for 16.7 providing needed governmental services to the property proposed 16.8 for annexation; 16.9 (i) Fiscal data of the annexing municipality and the 16.10 property proposed for annexation, including net tax capacity and 16.11 the present bonded indebtedness, and the local tax rates of the 16.12 county, school district, and township; 16.13 (j) Relationship and effect of the proposed annexation on 16.14 communities adjacent to the area and on school districts within 16.15 and adjacent to the area; 16.16 (k) Adequacy of town government to deliver necessary 16.17 services to the property proposed for annexation; 16.18 (l) Analysis of whether the needed governmental services 16.19 can best be provided through incorporation or annexation to an 16.20 adjacent municipality; and 16.21 (m) If only a part of a township is annexed, the ability of 16.22 the remainder of the township to continue or the feasibility of 16.23 it being incorporated separately or being annexed to another 16.24 municipality. 16.25 Based upon these factors, theboard mayjudge shall order 16.26 the annexation if it finds that the area proposed for annexation 16.27 (a) is now or is about to become urban or suburban in character 16.28 and that the annexing municipality is capable of providing the 16.29 services required by the area within a reasonable time; or (b) 16.30 if it finds that the existing township form of government is not 16.31 adequate to protect the public health, safety, and welfare; or 16.32 (c) if it finds that annexation would be in the best interests 16.33 of the area proposed for annexation. Theboardjudge may deny 16.34 the annexation if it conflicts with any provision of the joint 16.35 agreement. Theboardjudge may alter the boundaries of the 16.36 proposed annexation by increasing or decreasing the area so as 17.1 to include that property within the designated area which is in 17.2 need of municipal services or will be in need of municipal 17.3 services. 17.4 If the annexation is denied, no proceeding for the 17.5 annexation of substantially the same area may be initiated 17.6 within two years from the date of theboard'sjudge's order 17.7 unless the new proceeding is initiated by a majority of the 17.8 area's property owners and the petition is supported by affected 17.9 parties to the resolution. In all cases, theboardjudge shall 17.10 set forth the factors which are the basis for the decision. 17.11 Subd. 4. [EFFECTIVE DATE OF ANNEXATION.] Theboard'sorder 17.12 shall be effective upon the issuance of the order or at such 17.13 later time as is providedby the boardinitsthe order. A copy 17.14 of the annexation order must be delivered immediately by 17.15 theexecutive director of the Minnesota municipal boardoffice 17.16 of strategic and long-range planning or the administrative law 17.17 judge to the appropriate county auditor or auditors. For the 17.18 purposes of taxation, if the annexation becomes effective on or 17.19 before August 1 of a levy year, the municipality may levy on the 17.20 annexed area beginning with that same levy year. If the 17.21 annexation becomes effective after August 1 of a levy year, the 17.22 town may continue to levy on the annexed area for that levy 17.23 year, and the municipality may not levy on the annexed area 17.24 until the following levy year. 17.25 Subd. 5. [PLANNING IN THE AREA DESIGNATED FOR ORDERLY 17.26 ANNEXATION.] A joint resolution may provide for the 17.27 establishment of a board to exercise planning and land use 17.28 control authority within any area designated as an orderly 17.29 annexation area pursuant to this section, in the manner 17.30 prescribed by Minnesota Statutes 1976, section 471.59, 17.31 subdivisions 2 to 8, inclusive. 17.32 (a) A board established pursuant to a joint resolution 17.33 shall have all of the powers contained in sections 462.351 to 17.34 462.364, and shall have the authority to adopt and enforce the 17.35 uniform fire code promulgated pursuant to section 299F.011. 17.36 (b) The joint resolution may provide that joint planning 18.1 and land use controls shall apply to any or all parts of the 18.2 area designated for orderly annexation as well as to any 18.3 adjacent unincorporated or incorporated area, provided that the 18.4 area to be included shall be described in the joint resolution. 18.5 (c) If the joint resolution does not provide for joint 18.6 planning and land use control, the following procedures shall 18.7 govern: 18.8 If the county and townships agree to exclude the area from 18.9 their zoning and subdivision ordinances, the municipality may 18.10 extend its zoning and subdivision regulations to include the 18.11 entire orderly annexation area as provided in section 462.357, 18.12 subdivision 1, and section 462.358, subdivision 1. 18.13 If the county and township do not agree to such 18.14 extraterritorial zoning and subdivision regulation by the 18.15 municipality, zoning and subdivision regulation within the 18.16 orderly annexation area shall be controlled by a three-member 18.17 committee with one member appointed from each of the municipal, 18.18 town, and county governing bodies. This committee shall serve 18.19 as the "governing body" and "board of appeals and adjustments", 18.20 for purposes of sections 462.357 and 462.358, within the orderly 18.21 annexation area. The committee shall have all of the powers 18.22 contained in sections 462.351 to 462.364, and shall have the 18.23 authority to adopt and enforce the uniform fire code promulgated 18.24 pursuant to section 299F.011. 18.25 Sec. 15. Minnesota Statutes 1994, section 414.033, is 18.26 amended to read: 18.27 414.033 [ANNEXATION BY ORDINANCE.] 18.28 Subdivision 1. [UNINCORPORATED PROPERTY.] Unincorporated 18.29 property abutting a municipality may be annexed to the 18.30 municipality by ordinance as provided for in this section. 18.31 Subd. 2. [ANNEXATION CRITERIA.] A municipal council may by 18.32 ordinance declare land annexed to the municipality and any such 18.33 land is deemed to be urban or suburban in character or about to 18.34 become so if: 18.35 (1) the land is owned by the municipality; 18.36 (2) the land is completely surrounded by land within the 19.1 municipal limits; 19.2 (3) the land abuts the municipality and the area to be 19.3 annexed is 60 acres or less, and the area to be annexed is not 19.4 presently served by public sewer facilities or public sewer 19.5 facilities are not otherwise available, and the municipality 19.6 receives a petition for annexation from all the property owners 19.7 of the land;or19.8 (4) the land has been approved after August 1, 1995, by a 19.9 preliminary plat or final plat for subdivision to provide 19.10 residential lots that average 21,780 square feet or less in area 19.11 and the land is located within two miles of the municipal 19.12 limits; or 19.13 (5) the perimeter of the area to be annexed by a 19.14 municipality is 60 percent or more bordered by the municipality 19.15 and the area to be annexed is 40 acres or less. 19.16 Subd. 2a. [MUNICIPALITY MAY ANNEX NONABUTTING PROPERTY; 19.17 CRITERIA.] Notwithstanding the abutting requirement of 19.18 subdivision 1, if land is owned by a municipality or if all of 19.19 the landowners petition for annexation, and the land is within 19.20 an existing orderly annexation area as provided by section 19.21 414.0325, then the municipality may declare the land annexed. 19.22 This municipal action does not otherwise affect the other terms 19.23 and conditions of existing orderly annexation agreements entered 19.24 into pursuant to section 414.0325. 19.25 Subd. 2b. [NOTICE REQUIRED.] Before a municipality may 19.26 adopt an ordinance under subdivision 2, clause (2), (3), or (4), 19.27 or subdivision 2a, a municipality must hold a public hearing and 19.28 give 30 days' written notice by certified mail to the town or 19.29 towns affected by the proposed ordinance and to all landowners 19.30 within and contiguous to the area to be annexed. 19.31Subd. 3. If the perimeter of the area to be annexed by a19.32municipality is 60 percent or more bordered by the municipality19.33and if the area to be annexed is 40 acres or less, the19.34municipality shall serve notice of intent to annex upon the town19.35board and the municipal board, unless the area is appropriate19.36for annexation by ordinance under subdivision 2, clause (3).20.1The town board shall have 90 days from the date of service to20.2serve objections with the board. If no objections are20.3forthcoming within the said 90 day period, such land may be20.4annexed by ordinance. If objections are filed with the board,20.5the board shall conduct hearings and issue its order as in the20.6case of annexations under section 414.031, subdivisions 3 and 4.20.7 Subd. 5. [PETITION BY PROPERTY OWNERS.] If the land is 20.8 platted, or, if unplatted, does not exceed 200 acres, a majority 20.9 of the property owners in number may petition the municipal 20.10 council to have such land included within the abutting 20.11 municipality and, within ten days thereafter, shall file copies 20.12 of the petition with theboardoffice of strategic and 20.13 long-range planning, the town board, the county board and the 20.14 municipal council of any other municipality which borders the 20.15 land to be annexed. Within 90 days from the date of service, 20.16 the town board or the municipal council of such abutting 20.17 municipality may submit written objections to the annexation to 20.18 theboardoffice and the annexing municipality. Upon receipt of 20.19 such objections, theboard shall proceed to hold a hearing and20.20issue its ordermatter shall be heard and determined by order of 20.21 an administrative law judge in accordance with section 414.031, 20.22 subdivisions 3, 4, and 5. If written objections are not 20.23 submitted within the time specified hereunder and if the 20.24 municipal council determines that property proposed for the 20.25 annexation is now or is about to become urban or suburban in 20.26 character, it may by ordinance declare such land annexed to the 20.27 municipality. If the petition is not signed by all the property 20.28 owners of the land proposed to be annexed, the ordinance shall 20.29 not be enacted until the municipal council has held a hearing on 20.30 the proposed annexation after at least 30 days mailed notice to 20.31 all property owners within the area to be annexed. 20.32 Subd. 6. [MULTIPLE ANNEXATION PROCEEDINGS; ORDERS.] 20.33 Whenever a proceeding for annexation is initiated under this 20.34 section and all or any part of the land is included in another 20.35 boundary adjustment proceeding pending before theboardoffice 20.36 of strategic and long-range planning or an administrative law 21.1 judge, no action thereon shall be taken by the municipality, 21.2 unless otherwise provided by an order of theboardauthority 21.3 before which the other proceeding is pending, until final 21.4 disposition has been made of the petition pending before the 21.5boardother authority. Under this section theboardauthority 21.6 before which the other proceeding is pending will accept a 21.7 waiver from all parties having a right to object, stating they 21.8 have no objections to the proposed annexation and waiving the 90 21.9 day period before an annexation ordinance may be adopted. 21.10 Subd. 7. [TAX LEVIES.] Any annexation ordinance provided 21.11 for in this section must be filed with theboardoffice of 21.12 strategic and long-range planning, the township, the county 21.13 auditor and the secretary of state and is final on the date the 21.14 ordinance is approvedby the board. A copy of the annexation 21.15 ordinance must be delivered immediately by the governing body of 21.16 the municipality to the appropriate county auditor or auditors. 21.17 For the purposes of taxation, if the annexation becomes 21.18 effective on or before August 1 of a levy year, the municipality 21.19 may levy on the annexed area beginning with that same levy 21.20 year. If the annexation becomes effective after August 1 of a 21.21 levy year, the town may continue to levy on the annexed area for 21.22 that levy year, and the municipality may not levy on the annexed 21.23 area until the following levy year. 21.24 Subd. 9. [POPULATION STATEMENT.] Themunicipal board21.25 office of strategic and long-range planning or the 21.26 administrative law judge initsthe approval letter may state 21.27 the population of the area annexed by ordinance. The stated 21.28 population shall be effective on the date of the letter or at a 21.29 later date set in the letter. If population information is not 21.30 contained in the petition or notice of intent for annexation and 21.31 the annexation ordinance, theboardapproval letter shall not 21.32 state the population. 21.33 Subd. 10. [ADDITIONAL INFORMATION.] Themunicipal board21.34 office of strategic and long-range planning or the 21.35 administrative law judge may, atitsthe discretion of the 21.36 office or the judge, require the city or property owners to 22.1 furnish additional information concerning an annexation by 22.2 ordinance to inform theboardrequesting authority about the 22.3 extent to which the proposed annexation conforms to the 22.4 statutory criteria set forth in sections 414.01, subdivision 1 22.5 and 414.031, subdivision 4. 22.6 Subd. 11. [FLOODPLAIN; SHORELAND AREA.] When a 22.7 municipality declares land annexed to the municipality under 22.8 subdivision 2, clause (3), or subdivision 2a, and the land is 22.9 within a designated floodplain, as provided by section 103F.111, 22.10 subdivision 4, or a shoreland area, as provided by section 22.11 103F.205, subdivision 4, the municipality shall adopt or amend 22.12 its land use controls to conform to chapter 103F, and any new 22.13 development of the annexed land shall be subject to chapter 103F. 22.14 Subd. 12. [PROPERTY TAXES.] When a municipality annexes 22.15 land under subdivision 2, clause (2), (3), or (4), or 22.16 subdivision 2a, property taxes payable on the annexed land shall 22.17 continue to be paid to the affected town or towns for the year 22.18 in which the annexation becomes effective. Thereafter, property 22.19 taxes on the annexed land shall be paid to the municipality. In 22.20 the first year following the year the land was annexed, the 22.21 municipality shall make a cash payment to the affected town or 22.22 towns in an amount equal to 90 percent of the property taxes 22.23 paid in the year the land was annexed; in the second year, an 22.24 amount equal to 70 percent of the property taxes paid in the 22.25 year the land was annexed; in the third year, an amount equal to 22.26 50 percent of the property taxes paid in the year the land was 22.27 annexed; in the fourth year, an amount equal to 30 percent of 22.28 the property taxes paid in the year the land was annexed; and in 22.29 the fifth year, an amount equal to ten percent of the property 22.30 taxes paid in the year the land was annexed. The municipality 22.31 and the affected township may agree to a different payment. 22.32 Sec. 16. Minnesota Statutes 1994, section 414.035, is 22.33 amended to read: 22.34 414.035 [DIFFERENTIAL TAXATION.] 22.35 Whenevera boardan order, under section 414.031, 414.0325, 22.36 or 414.033, annexes part or all of a township to a municipality, 23.1 theboardorder may provide that the tax rate of the annexing 23.2 municipality on the area annexed shall be increased in 23.3 substantially equal proportions over not more than six years to 23.4 equality with the tax rate on the property already within the 23.5 municipality. The appropriate period, if any, shall be based on 23.6 the time reasonably required to effectively provide full 23.7 municipal services to the annexed area. 23.8 Sec. 17. Minnesota Statutes 1994, section 414.036, is 23.9 amended to read: 23.10 414.036 [MUNICIPAL REIMBURSEMENT.] 23.11 Whena boardan order under section 414.0325 annexes part 23.12 of a town to a municipality, the orderly annexation agreement 23.13 between the town and municipality may provide a reimbursement 23.14 from the municipality to the town for all or part of the taxable 23.15 property annexed as part of theboardorder. The reimbursement 23.16 shall be completed in substantially equal payments over not less 23.17 than two nor more than six years from the time of annexation. 23.18 Sec. 18. Minnesota Statutes 1994, section 414.041, is 23.19 amended to read: 23.20 414.041 [CONSOLIDATION OF TWO OR MORE MUNICIPALITIES.] 23.21 Subdivision 1. [INITIATING THE PROCEEDING.] Two or more 23.22 municipalities may be the subject of a single proceeding 23.23 provided that each municipality abuts at least one of the 23.24 included municipalities. The proceeding shall be initiated in 23.25 one of the following ways: 23.26 (a) Submitting to theexecutive directoroffice of 23.27 strategic and long-range planning a resolution of the city 23.28 council of each affected municipality; 23.29 (b) Submitting to theexecutive directoroffice a petition 23.30 signed by five percent or more of the resident voters of a 23.31 municipality who voted for governor at the last general 23.32 election; or 23.33 (c) By theboardoffice on its own motion. 23.34 The petition or resolution shall set forth the following 23.35 information about each included municipality: name, description 23.36 of boundaries, the reasons for requesting the consolidation and 24.1 the names of all parties entitled to mailed notice under section 24.2 414.09. The party initiating the proceeding shall serve copies 24.3 of the petition or resolution on all of the included 24.4 municipalities. 24.5 Subd. 2. [APPOINTMENT OF CONSOLIDATION COMMISSION.] Upon 24.6 receipt of a petition or a resolution requesting consolidation 24.7 or upon theboard'soffice's own motion, theboardoffice shall 24.8 appoint a consolidation commission from a list of ten candidates 24.9 submitted by each affected city council. The commission shall 24.10 be composed of not fewer than five members from each affected 24.11 municipality. From a separate list of three persons submitted 24.12 by each affected city council, theboardoffice shall appoint a 24.13 commission chair who is not a resident of an affected 24.14 municipality but who resides in an affected county. 24.15 No person is disqualified from serving on a consolidation 24.16 commission by reason of holding other elected or appointed 24.17 office. Consolidation commission members shall hold office 24.18 until a consolidation report has been issued by the commission. 24.19 Theboardoffice shall fill vacancies in the commission by 24.20 appointment. The consolidation commission shall make rules with 24.21 reference to its operation and procedures including quorum 24.22 requirements with reference to its operations and procedures. 24.23 Subd. 3. [COMMISSION'S HEARING AND REPORT.] The 24.24 consolidation commission shall conduct hearings regarding the 24.25 proposed consolidation. The hearings shall include, but are not 24.26 limited to, the following subjects: 24.27 (a) The contents of any city charter for the proposed 24.28 consolidated city or the form of government of the proposed 24.29 consolidated city; 24.30 (b) Analysis of whether a ward system shall be included in 24.31 the form of government of the proposed consolidated city; and 24.32 (c) Each factor consideredby the boardunder subdivision 24.33 5, clauses (a) to (i). 24.34 Based on these factors and upon other matters which come 24.35 before the consolidation commission, the commission shall issue 24.36 a report to themunicipal boardoffice with findings and 25.1 recommendations within two years from the date of theboard's25.2 initial appointment of the commission. 25.3 Subd. 4. [BOARD'SHEARING AND NOTICE.] Upon receipt of the 25.4 commission's report, theexecutive directoroffice of strategic 25.5 and long-range planning shall inform the office of 25.6 administrative hearings which shall designate a time and a place 25.7 for a hearing in accordance with section 414.09. 25.8 Subd. 5. [BOARD'SORDER.] In arriving atitsa decision, 25.9 theboardadministrative law judge shall consider the following 25.10 factors: 25.11 (a) Present population, past population growth and 25.12 projected population of the included municipalities; 25.13 (b) Quantity of land within the included municipalities; 25.14 and natural terrain including general topography, major 25.15 watersheds, soil conditions, and such natural features as 25.16 rivers, lakes and major bluffs; 25.17 (c) Degree of contiguity of the boundaries between the 25.18 included municipalities; 25.19 (d) Analysis of whether present planning and physical 25.20 development in the included municipalities indicates that the 25.21 consolidation of these municipalities will benefit planning and 25.22 land use patterns in the area; the present transportation 25.23 network and potential transportation issues, including proposed 25.24 highway development; 25.25 (e) Analysis of whether consolidation of the included 25.26 municipalities is consistent with comprehensive plans for the 25.27 area; 25.28 (f) Analysis of whether governmental services now available 25.29 in the included municipalities can be more effectively or more 25.30 economically provided by consolidation; 25.31 (g) Analysis of whether there are existing or potential 25.32 environmental problems and whether municipal consolidation will 25.33 help improve such conditions; 25.34 (h) Analysis of tax and governmental aid issues involved in 25.35 the consolidation of the included municipalities; and 25.36 (i) Analysis of the effect of consolidation on area school 26.1 districts. 26.2 (j) Analysis of the applicability of the state building 26.3 code. 26.4 Theboardadministrative law judge shall consider and may 26.5 accept, amend, return to the commission for amendment or further 26.6 study, or reject the commission's findings and recommendations 26.7 based upon theboard'sjudge's written determination of what is 26.8 in the best interests of the affected municipalities. 26.9 Theboardjudge shall order the consolidation if it finds 26.10 that consolidation will be for the best interests of the 26.11 municipalities. In all cases, theboardjudge shall set forth 26.12 the factors which are the basis for the decision. 26.13 If theboardjudge orders consolidation,itthe judge shall 26.14 provide for election of new municipal officers in accordance 26.15 with section 414.09. If the most populous of the included 26.16 municipalities is a statutory city, the new municipality shall 26.17 be a statutory city and the plan of government shall be Optional 26.18 Plan A, provided that an alternate plan may be adopted pursuant 26.19 to section 412.551, at any time. If the most populous of the 26.20 included municipalities is a home rule charter city or organized 26.21 under a statute other than chapter 412, the new municipality 26.22 shall be governed by its home rule charter or the statutory form 26.23 under which it is governed except that any ward system for the 26.24 election of council members shall be inoperable. If the 26.25 commission's findings and recommendations include a proposed 26.26 home rule charter for the new municipality, theboardjudge may 26.27 initsthe order combine the issue of the adoption of the 26.28 charter and the vote on approval of the order for consolidation 26.29 into one question on the ballot, and shall submit it in a 26.30 special or general election as provided in section 410.10. The 26.31 ordinances of all of the included municipalities shall continue 26.32 in effect within their former boundaries until repealed by the 26.33 governing body of the new municipality. 26.34 Notwithstanding any other provision of law to the contrary, 26.35 theboardjudge may initsthe order establish a ward system in 26.36 the new municipality, in which event it shall establish not less 27.1 than three nor more than seven wards, each of which shall elect 27.2 one council member. When more than two years have elapsed after 27.3 consolidation, the governing body may, by a four-fifths vote, 27.4 abolish the ward system. 27.5 The new municipality shall assume the name of the most 27.6 populous municipality unless previous to the election another 27.7 name is chosen by joint resolution of a majority of the included 27.8 municipalities or by the consolidation commission. 27.9 The number of license privileges existing in the included 27.10 municipalities prior to consolidation and pursuant to state law 27.11 shall not be diminished as a result of the consolidation. 27.12 If the consolidation is denied or defeated in a referendum, 27.13 no proceeding for the consolidation of the same municipalities 27.14 may be initiated within two years from the date of theboard's27.15 order unless authorized by theboardjudge. 27.16 Subd. 6. [FINAL APPROVAL OF THE CONSOLIDATION.] (a) If the 27.17 consolidation was initiated by a petition of the resident voters 27.18 of a municipality, theboard'sjudge's order for consolidation 27.19 shall be final upon approval by resolution of the city councils 27.20 in each of the affected municipalities unless ten percent or 27.21 more of the resident voters of an affected municipality who 27.22 voted for governor at the last general election petition the 27.23 city council for a referendum on the consolidation. The 27.24 petition must be submitted within 90 days of the final date of 27.25 theboard'sorder or the date of final approval of theboard's27.26 order by the city councils, whichever is later. Upon receipt 27.27 and verification of the petition, theboardjudge shall order 27.28 the municipalities to conduct separate referenda at a general or 27.29 special election in each municipality on the same day, and the 27.30 referenda shall be held within six months of the receipt of the 27.31 petition. Costs of the respective referenda shall be borne by 27.32 the respective municipality. A majority of those voting in each 27.33 city must approve the proposed consolidation. The results of 27.34 the referenda shall be certified to theexecutive director of27.35the municipal boardjudge and the office of strategic and 27.36 long-range planning by the chief election judge within ten days 28.1 after the referenda. Theexecutive directoroffice shall upon 28.2 receipt of the certificate notify all parties of the election 28.3 results. 28.4 (b) If the consolidation was initiated by a city council 28.5 resolution of each affected municipality, theboard'sorder for 28.6 consolidation shall be final unless ten percent or more of the 28.7 resident voters of an affected municipality petition for a 28.8 referendum as provided in clause (a). 28.9 (c) If the consolidation was initiated by theboard's28.10 office's own motion, no consolidation orderof the board28.11 involving existing municipalities shall become effective unless 28.12 adopted by the council of each affected municipality by a 28.13 majority vote and unless the consolidation orderof the boardis 28.14 approved by the qualified voters of the affected municipalities 28.15 at a general or special election set according to law. The form 28.16 of the ballot shall be fixed by theboardjudge; and, if a 28.17 majority of the votes cast on the question in each municipality 28.18 are in favor of its adoption, the orderof the boardshall 28.19 become effective as provided herein. 28.20 (d) Notwithstanding a disapproval of theboard'sorder for 28.21 consolidation by a city council of an affected municipality 28.22 required to approve theboard'sorder in clause (a) or (c), the 28.23board'sorder for consolidation shall nevertheless be deemed 28.24 approved by that city council if ten percent or more of the 28.25 resident voters of that municipality who voted for governor at 28.26 the last general election petition the city council for a 28.27 referendum on the consolidation as provided in clause (a), and a 28.28 majority of those voting in that municipality approve the 28.29board'sorder for consolidation. 28.30 Subd. 7. [DIFFERENTIAL TAXATION.] Where one municipality 28.31 is receiving substantially fewer municipal services, theboard28.32 judge may provide that the tax rate of the municipality shall be 28.33 increased in substantially equal proportions over a period of 28.34 not more than five years to equality with the tax rate in the 28.35 remainder of the new municipality. The period shall be 28.36 determined by theboardjudge on the basis of the period 29.1 reasonably required to provide substantially equal municipal 29.2 services. 29.3 Subd. 8. [EFFECTIVE DATE.] The consolidation shall be 29.4 effective upon the election and qualification of new municipal 29.5 officers, or at such later date as set by theboard in itsorder. 29.6 Sec. 19. Minnesota Statutes 1994, section 414.051, is 29.7 amended to read: 29.8 414.051 [BOARD'SREVIEW OF TOWNSHIPS ACCORDING TO 29.9 POPULATION.] 29.10 After each federal census, theboardoffice of strategic 29.11 and long-range planning may determine the townships which have a 29.12 population in excess of 2,000 exclusive of any municipality or 29.13 part of a municipality within the township and make 29.14 recommendations which it deems necessary and reasonable to the 29.15 board of any such township. 29.16 Sec. 20. Minnesota Statutes 1994, section 414.06, is 29.17 amended to read: 29.18 414.06 [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] 29.19 Subdivision 1. [INITIATING THE PROCEEDING.] Property which 29.20 is situated within a municipality and abutting the municipal 29.21 boundary, rural in character and not developed for urban 29.22 residential, commercial, or industrial purposes may be detached 29.23 from the municipality according to the following procedure. The 29.24 proceeding may be initiated by submitting to theboardoffice of 29.25 strategic and long-range planning a resolution of the 29.26 municipality to which the land is attached or by submittingto29.27the boarda petition of all of the property owners of the land 29.28 to be detached if the area is less than 40 acres or of 75 29.29 percent of the property owners if over 40 acres. The petition 29.30 or resolution shall set forth the boundaries and the area of the 29.31 land to be detached, the number and character of the buildings, 29.32 the resident population, and the municipal improvements, if any, 29.33 in the area. 29.34 Subd. 2. [BOARD'SHEARING AND NOTICE.] If both a 29.35 resolution of the municipality and a petition by all the 29.36 property owners are submitted, no hearing is necessary. In any 30.1 other case, upon receipt of a timely objection to a petition or 30.2 resolution, theexecutive director of the boardoffice of 30.3 strategic and long-range planning shall inform the office of 30.4 administrative hearings which shall designate a time and place 30.5 for a hearing in accordance with section 414.09. If no timely 30.6 objection is received, the office of strategic and long-range 30.7 planning shall order the detachment as requested in the petition 30.8 or resolution. 30.9 Subd. 3. [BOARD'SORDER.] Upon completion of the hearing, 30.10 theboardjudge may order the detachment if it finds that the 30.11 requisite number of property owners have signed the petition if 30.12 initiated by the property owners, that the property is rural in 30.13 character and not developed for urban residential, commercial or 30.14 industrial purposes, that the property is within the boundaries 30.15 of the municipality and abuts a boundary, that the detachment 30.16 would not unreasonably affect the symmetry of the detaching 30.17 municipality, and that the land is not needed for reasonably 30.18 anticipated future development. Theboardjudge may deny the 30.19 detachment ifitthe judge finds that the remainder of the 30.20 municipality cannot continue to carry on the functions of 30.21 government without undue hardship. Theboardjudge shall have 30.22 authority to decrease the area of property to be detached and 30.23 may include only a part of the proposed area to be detached. If 30.24 the tract abuts more than one township, it shall become a part 30.25 of each township, being divided by projecting through it the 30.26 boundary line between the townships. The detached area may be 30.27 relieved of the primary responsibility for existing indebtedness 30.28 of the municipality and be required to assume the indebtedness 30.29 of the township of which it becomes a part, in such proportion 30.30 as theboardjudge shall deem just and equitable having in view 30.31 the amount of taxes due and delinquent and the indebtedness of 30.32 each township and the municipality affected, if any, and for 30.33 what purpose the same was incurred, all in relation to the 30.34 benefit inuring to the detached area as a result of the 30.35 indebtedness and the last net tax capacity of the taxable 30.36 property in each township and municipality. 31.1 Subd. 4. [EFFECTIVE DATE OF DETACHMENT.] The detachment 31.2 shall be effective upon the issuance of theboard'sorder, or at 31.3 such later date, as provided by theboard in itsorder. A copy 31.4 of the detachment order must be delivered immediately by 31.5 theexecutive director of the Minnesota municipal boardoffice 31.6 of strategic and long-range planning or the administrative law 31.7 judge to the appropriate county auditor or auditors. For the 31.8 purposes of taxation, if the detachment becomes effective on or 31.9 before August 1 of a levy year, the town or towns acquiring the 31.10 detached area may levy on it beginning with that same levy 31.11 year. If the detachment becomes effective after August 1 of a 31.12 levy year, the municipality may continue to levy on the detached 31.13 area for that levy year, and the town or towns acquiring the 31.14 detached area may not levy on it until the following levy year. 31.15 Sec. 21. Minnesota Statutes 1994, section 414.061, is 31.16 amended to read: 31.17 414.061 [CONCURRENT DETACHMENT AND ANNEXATION OF 31.18 INCORPORATED LAND.] 31.19 Subdivision 1. [INITIATING THE PROCEEDING.] Property of 31.20 one municipality which abuts another may be concurrently 31.21 detached and annexed by the procedure set forth in this 31.22 section. The proceeding shall be initiated by submitting to the 31.23executive directoroffice of strategic and long-range planning 31.24 resolutions of both municipalities describing the land and 31.25 stating their desire to detach and annex the land. 31.26 Subd. 2. [BOARD'SORDER.] If the resolutions are in order, 31.27 theboardoffice may order the detachment and annexation. 31.28 Subd. 3. [EFFECTIVE DATE.] The concurrent detachment and 31.29 annexation shall be effective upon the issuance of theboard's31.30 order, or at such later date as provided by theboard in its31.31 order. A copy of the annexation order must be delivered 31.32 immediately by theexecutive director of the Minnesota municipal31.33boardoffice of strategic and long-range planning to the 31.34 appropriate county auditor or auditors. For the purposes of 31.35 taxation, if the annexation becomes effective on or before 31.36 August 1 of a levy year, the municipality acquiring the detached 32.1 area of another municipality may levy on it beginning with that 32.2 same levy year. If the annexation becomes effective after 32.3 August 1 of a levy year, the municipality losing the detached 32.4 area may continue to levy on it for that levy year, and the 32.5 municipality acquiring the detached area may not levy on it 32.6 until the following levy year. 32.7 Subd. 4. [BOARDOFFICE INITIATION.] Theboardoffice may 32.8 initiate proceedings for the concurrent detachment and 32.9 annexation of portions of one municipality completely surrounded 32.10 by another municipality, on its own motion or upon the petition 32.11 of all of the owners of property in the completely surrounded 32.12 area. In such cases theboardoffice of administrative hearings 32.13 shall conduct hearings and issue its order as in the case of 32.14 consolidations of two or more municipalities under sections 32.15 414.041, subdivision 5, and 414.09. 32.16 Subd. 4a. [PROPERTY NOT JOINING MAJOR PORTION OF 32.17 MUNICIPALITY.] Upon the petition of all of the owners of 32.18 property of a portion of a municipality which at no point joins 32.19 the major portion of the municipality but which at some point 32.20 joins another municipality, theboardoffice may initiate 32.21 proceedings for the concurrent detachment and annexation of said 32.22 portion. In such cases theboardoffice of strategic and 32.23 long-range planning shall inform the office of administrative 32.24 hearings which shall conduct hearings and issue its order as in 32.25 the case of consolidations of two or more municipalities under 32.26 sections 414.041, subdivision 5, and 414.09. 32.27 Subd. 5. [PROPERTY OWNER INITIATION.] Property owners may 32.28 initiate proceedings for the concurrent detachment of their 32.29 property from one municipality and its annexation to an adjacent 32.30 municipality by a petition signed by all of them that they 32.31 submit to theboardoffice of strategic and long-range planning 32.32 accompanied by a resolution of the city council of at least one 32.33 of the affected municipalities. Theboardoffice of strategic 32.34 and long-range planning shall inform the office of 32.35 administrative hearings which shall conduct hearings and issue 32.36 its order as in the case of consolidations of two or more 33.1 municipalities under sections 414.041, subdivision 5, and 414.09. 33.2 Sec. 22. Minnesota Statutes 1994, section 414.063, is 33.3 amended to read: 33.4 414.063 [JOINT AGREEMENTS.] 33.5 After notice and hearing as provided in section 414.09, the 33.6boardadministrative law judge may include provisions of joint 33.7 agreements between political subdivisions initsthe orders. 33.8 Sec. 23. Minnesota Statutes 1994, section 414.067, is 33.9 amended to read: 33.10 414.067 [APPORTIONMENT OF ASSETS AND OBLIGATIONS.] 33.11 Subdivision 1. [TOWNSHIP OR MUNICIPALITY DIVIDED.] 33.12 Wheneverthe boarda judge divides an existing governmental 33.13 unit, theboardjudge may apportion the property and obligations 33.14 between the governmental unit adding territory and the 33.15 governmental unit from which the territory was obtained. The 33.16 apportionment shall be made in a just and equitable manner 33.17 having in view the value of the existing township or municipal 33.18 property located in the area to be added, the assets, value, and 33.19 location of all the taxable property in the existing township or 33.20 municipality, the indebtedness, the taxes due and delinquent, 33.21 other revenue accrued but not paid to the existing township or 33.22 municipality and the ability of any remainder of the township or 33.23 municipality to function as an effective governmental unit. The 33.24 order shall not relieve any property from any tax liability for 33.25 payment for any bonded obligation, but the taxable property in 33.26 the new municipality may be made primarily liable thereon. 33.27 Subd. 2. [ENTIRE TOWNSHIP OR MUNICIPALITY.] When an entire 33.28 township is annexed by an existing municipality, or an entire 33.29 township is incorporated into a new municipality, or a 33.30 municipality is consolidated into a new municipality, all money, 33.31 claims, or properties, including real estate owned, held, or 33.32 possessed by the annexed, incorporated township or municipality, 33.33 and any proceeds or taxes levied by such town or municipality, 33.34 collected or uncollected, shall become and be the property of 33.35 the new or annexing municipality with full power and authority 33.36 to use and dispose of the same for public purposes as the 34.1 council or new annexing municipality may deem best, subject to 34.2 the rights of creditors. Any bonded indebtedness of a town or 34.3 former municipality annexed to an existing municipality or 34.4 incorporated or consolidated into a new municipality shall be 34.5 borne only by that property within the boundaries of the former 34.6 town or municipality, provided, however, the units of government 34.7 concerned may by resolution of their governing bodies agree that 34.8 the new municipality shall assume the bonded indebtedness of the 34.9 former units of government existing and outstanding at the time 34.10 of annexation, incorporation, or consolidation. 34.11 Subd. 3. [REVISION OF TAX RECORDS; REDISTRIBUTION OF 34.12 LEVIES.] In an apportionment made under this section, theboard34.13 judge may order the county auditor to revise tax records and 34.14 respread levies at any time prior to December 15 or order the 34.15 county treasurer to redistribute taxes levied and receivable. 34.16 Sec. 24. Minnesota Statutes 1994, section 414.07, is 34.17 amended to read: 34.18 414.07 [APPEALSJUDICIAL REVIEW.] 34.19 Subdivision 1. [ORDERSOF BOARD, TIME LIMITATION.] All 34.20 orders of theboardadministrative law judge shall be issued 34.21 within one year from the date of the day of the first hearing 34.22 thereon provided that the time may be extended for a fixed 34.23 additional period upon consent of all parties of record. 34.24 Failure to so order shall be deemed to be an order denying the 34.25 matterbefore the board.An appeal may be taken fromJudicial 34.26 review of such failure to so order may be taken in the same 34.27 manner asan appeal fromjudicial review of an order as provided 34.28 in subdivision 2. 34.29 Subd. 2. [GROUNDS FOR APPEAL.] Any person aggrieved by any 34.30 order of theboard may appeal to the district court upon the34.31following grounds:34.32(a) that the board had no jurisdiction to act;34.33(b) that the board exceeded its jurisdiction;34.34(c) that the order of the board is arbitrary, fraudulent,34.35capricious or oppressive or in unreasonable disregard of the34.36best interests of the territory affected; or35.1(d) that the order is based upon an erroneous theory of law.35.2The appeal shall be taken in the district court in the35.3county in which the majority of the area affected is located.35.4The appeal shall not stay the effect of the order. All notices35.5and other documents shall be served on both the executive35.6director and the attorney general's assistant assigned to the35.7board.35.8If the court determines that the action of the board35.9involved is unlawful or unreasonable or is not warranted by the35.10evidence in case an issue of fact is involved, the court may35.11vacate or suspend the action of the board involved, in whole or35.12in part, as the case requires. The matter shall then be35.13remanded to the board for further action in conformity with the35.14decision of the court.35.15To render a review of a board order effectual, the35.16aggrieved person shall file with the court administrator of the35.17district court of the county in which the majority of the area35.18is located, within 30 days of the order, an application for35.19review together with the grounds upon which the review is sought.35.20An appeal lies from the district court as in other civil35.21casesadministrative law judge is entitled to judicial review of 35.22 the order as provided in sections 14.636 to 14.69. 35.23 Sec. 25. Minnesota Statutes 1994, section 414.09, is 35.24 amended to read: 35.25 414.09 [UNIFORM PROCEDURESOF BOARD.] 35.26 Subdivision 1. [HEARINGS.] Proceedings initiated by the 35.27 submission of an initiating document or by theboardoffice of 35.28 strategic and long-range planning of its own motion shall come 35.29 on for hearing within 30 to 60 days from receipt of the document 35.30 by theboardoffice or from the date ofboardoffice action and 35.31 theboardoffice or administrative law judge must submititsan 35.32 order no later than one year from the date of the day of the 35.33 first hearing.In any proceeding before the board and upon the35.34request of any party, the board shall meet physically rather35.35than by means of electronic media.The place of the hearing 35.36 shall be in the county where a majority of the affected 36.1 territory is situated, and shall be established for the 36.2 convenience of the parties. Theexecutive directoroffice or 36.3 judge shall mail notice of the hearing to the following 36.4 parties: the township or municipality presently governing the 36.5 affected territory; any township or municipality abutting the 36.6 affected territory; the county where the affected territory is 36.7 situated; and each planning agency which has jurisdiction over 36.8 the affected area. Theexecutive directoroffice or judge shall 36.9 cause notice of the hearing to be published for two successive 36.10 weeks in a legal newspaper of general circulation in the 36.11 affected area. When theboardadministrative law judge 36.12 exercisesitsauthority to change the boundaries of the affected 36.13 area so as to increase the quantity of the land, the hearing 36.14 shall be recessed and reconvened upon two weeks published notice 36.15 in a legal newspaper of general circulation in the affected area. 36.16 Subd. 2. [TRANSMITTAL OFBOARD'STHE ORDER.] Theexecutive36.17directoroffice or judge shall cause copies of theboard'sorder 36.18 to be mailed to all parties entitled to mailed notice of hearing 36.19 under subdivision 1, the secretary of state, the department of 36.20 revenue, the state demographer, individual property owners if 36.21 initiated in that manner, affected county auditor, and any other 36.22 party of record. The affected county auditor shall record the 36.23 order against the affected property. 36.24 Subd. 3. [ELECTIONS OF MUNICIPAL OFFICERS.] An order 36.25 approving an incorporation or consolidation pursuant to this 36.26 chapter shall set a date for this election of new municipal 36.27 officers not less than 45 days nor more than 60 days after the 36.28 issuance of such order. Theboardoffice shall appoint an 36.29 acting clerk for election purposes, at least three election 36.30 judges who shall be residents of the new municipality, and shall 36.31 designate polling places within the new municipality. 36.32 The acting clerk shall prepare the official election 36.33 ballot. Affidavits of candidacy may be filed by any person 36.34 eligible to hold municipal office not more than four weeks nor 36.35 less than two weeks before the date designatedby the boardfor 36.36 the election. 37.1 The election shall be conducted in conformity with the 37.2 charter and the laws for conducting municipal elections insofar 37.3 as applicable. Any person eligible to vote at a township or 37.4 municipal election within the area of the new municipality, is 37.5 eligible to vote at such election. 37.6 Any excess in the expense of conducting the election over 37.7 receipts from filing fees shall be a charge against the new 37.8 municipality; any excess of receipts shall be deposited in the 37.9 treasury of the new municipality. 37.10 Sec. 26. [APPROPRIATION.] 37.11 The following sums are appropriated from the general fund 37.12 to the office named to perform the powers and duties transferred 37.13 by sections 2 to 25, for the biennium ending June 30, 1997: 37.14 $....... to the office of strategic and long-range 37.15 planning; 37.16 $....... to the office of administrative hearings. 37.17 Sec. 27. [REVISOR INSTRUCTION.] 37.18 In the next edition of Minnesota Statutes, the revisor of 37.19 statutes shall substitute any of the following, as appropriate, 37.20 for "municipal board" or "board" where those terms are used to 37.21 refer to duties of the abolished municipal board: 37.22 (1) "office of strategic and long-range planning" or 37.23 "office"; or 37.24 (2) "office of administrative hearings" or "office" or 37.25 "administrative law judge" or "judge." 37.26 Sec. 28. [REPEALER.] 37.27 Minnesota Statutes 1994, sections 414.01, subdivisions 2, 37.28 3, 3a, 4, 5, 6a, 7a, 8, 10, 11, and 12; and 414.08, are repealed. 37.29 Sec. 29. [EFFECTIVE DATE.] 37.30 This act is effective July 1, 1995.