as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
Engrossments | ||
---|---|---|
Introduction | Posted on 02/06/1997 |
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 1996, 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 1996, sections 414.01, 1.13 subdivisions 2, 5, 6a, 7a, 8, 10, 11, and 12; 1.14 414.0325, subdivision 1a; 414.033, subdivision 3; and 1.15 414.08. 1.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.17 Section 1. [TRANSFER OF AUTHORITY AND DUTIES.] 1.18 The authority and duties of the Minnesota municipal board 1.19 are transferred to the office of strategic and long-range 1.20 planning and to the office of administrative hearings, as 1.21 provided in sections 2 to 25. The transfers are subject to 1.22 Minnesota Statutes, section 15.039, with the exception of 1.23 subdivision 7, which does not apply. 1.24 Sec. 2. Minnesota Statutes 1996, section 14.03, 1.25 subdivision 2, is amended to read: 1.26 Subd. 2. [CONTESTED CASE PROCEDURES.] The contested case 1.27 procedures of the administrative procedure act provided in 1.28 sections 14.57 to 14.69 do not apply to (a)the Minnesota1.29municipal board, (b)the commissioner of corrections,(c)(b) 1.30 the unemployment insurance program and the social security 2.1 disability determination program in the department of economic 2.2 security,(d)(c) the commissioner of mediation services, 2.3(e)(d) the workers' compensation division in the department of 2.4 labor and industry,(f)(e) the workers' compensation court of 2.5 appeals, or(g)(f) the board of pardons. 2.6 Sec. 3. Minnesota Statutes 1996, section 414.01, 2.7 subdivision 1, is amended to read: 2.8 Subdivision 1. [PURPOSE.]The Minnesota municipal board is2.9hereby created to conduct proceedings, make determinations and2.10issue orders for the creation of a municipality, the combination2.11of two or more governmental units, or the alteration of a2.12municipal boundary.2.13 The legislature finds that: (1) sound urban development 2.14 and preservation of agricultural land and open spaces through 2.15 land use planning is essential to the continued economic growth 2.16 of this state; (2) municipal government most efficiently 2.17 provides governmental services in areas intensively developed 2.18 for residential, commercial, industrial, and governmental 2.19 purposes; and township government most efficiently provides 2.20 governmental services in areas used or developed for 2.21 agricultural, open space, and rural residential purposes; (3) 2.22 the public interest requires that municipalities be formed when 2.23 there exists or will likely exist the necessary resources to 2.24 provide for their economical and efficient operation; (4) 2.25 annexation to existing municipalities of unincorporated areas 2.26 unable to supply municipal services should be facilitated; and, 2.27 (5) the consolidation of municipalities should be encouraged. 2.28The Minnesota municipal board is empowered toThe purposes of 2.29 this chapter are as follows: (i) promote and regulate 2.30 development of municipalities to provide for the extension of 2.31 municipal government to areas which are developed or are in the 2.32 process of being developed for intensive use for residential, 2.33 commercial, industrial, institutional, and governmental purposes 2.34 or are needed for such purposes;and to(ii) protect the 2.35 stability of unincorporated areas which are used or developed 2.36 for agricultural, open space, and rural residential purposes and 3.1 are not presently needed for more intensive uses; andto(iii) 3.2 protect the integrity of land use planning in municipalities and 3.3 unincorporated areas so that the public interest in efficient 3.4 local government will be properly recognized and served. 3.5 Sec. 4. Minnesota Statutes 1996, 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 1996, section 414.01, 3.22 subdivision 14, is amended to read: 3.23 Subd. 14. [POPULATION OF CHANGED TERRITORY.] Whena board3.24 an order enlarges or diminishes the area of an existing 3.25 municipality or town, the population of the annexed or detached 3.26 area shall be as foundby the boardatitsthe hearing or, in 3.27 cases in which no hearingby the boardfor the boundary change 3.28 is required, as stated in the resolution or ordinance. The 3.29 effective date of the population change shall be the same as the 3.30 effective date of the order whether or not the order is from a 3.31 hearing or from the approval of an annexation resolution or 3.32 ordinance. Theboardoffice of strategic and long-range 3.33 planning or the administrative law judge shall communicateits3.34 the population finding to the state demographer who shall 3.35 incorporate that data into the population estimate for the 3.36 municipality or town. When a new municipality is created by an 4.1 orderof the board, the municipality shall request a separation 4.2 census from the United States bureau of the census and bear any 4.3 costs incurred. 4.4 Sec. 6. Minnesota Statutes 1996, section 414.01, 4.5 subdivision 15, is amended to read: 4.6 Subd. 15. [INCREASED COSTS, LEVY PERIOD.] Whena boardan 4.7 order enlarges an existing municipality or creates a new 4.8 municipality, theboardoffice of strategic and long-range 4.9 planning or the administrative law judge may indicate initsthe 4.10 order the estimated increased costs to the municipality as the 4.11 result of the boundary adjustment, and the time period that the 4.12 municipality would be allowed a levy for these increased costs. 4.13 Sec. 7. Minnesota Statutes 1996, section 414.01, 4.14 subdivision 16, is amended to read: 4.15 Subd. 16. [COMPELLED MEETINGS; REPORT.] In any 4.16 proceedingbefore the board, theboardadministrative law judge 4.17 may at any time in the process require representatives from the 4.18 involved city, town, county, political subdivision, or other 4.19 governmental entity to meet together to discuss resolution of 4.20 issues raised by said petition or orderwhich confers4.21jurisdiction on the boardand other issues of mutual concern. 4.22 Theboardjudge may require that the parties meet at least three 4.23 times during a 60-day period. The parties shall designate a 4.24 person to report to theboardjudge on the results of the 4.25 meetings immediately after the last meeting. 4.26 Sec. 8. Minnesota Statutes 1996, section 414.01, 4.27 subdivision 17, is amended to read: 4.28 Subd. 17. [DATA FROM STATE AGENCIES.] Theboardoffice of 4.29 strategic and long-range planning or the office of 4.30 administrative hearings may request information from any state 4.31 department or agency in order to assistit to carry out itsan 4.32 office in the performance of its duties. The department or 4.33 agency shall promptly furnish the requested information to 4.34 theboardrequesting office. 4.35 Sec. 9. Minnesota Statutes 1996, section 414.011, 4.36 subdivision 7, is amended to read: 5.1 Subd. 7. [BOUNDARY ADJUSTMENT.] "Boundary adjustment" 5.2 means any proceedingby the municipal boardauthorized by this 5.3 chapter. 5.4 Sec. 10. Minnesota Statutes 1996, section 414.011, 5.5 subdivision 8, is amended to read: 5.6 Subd. 8. [MEETINGS, HEARINGS.] "Meetings"andor "hearings" 5.7 includes, but is not limited to,boarddeliberations by 5.8 electronic media. 5.9 Sec. 11. Minnesota Statutes 1996, section 414.012, is 5.10 amended to read: 5.11 414.012 [MAPS.] 5.12 Subdivision 1. [CORPORATE BOUNDARY MAP.] A municipality 5.13 initiating any boundary adjustment authorized by this chapter 5.14 shall file with themunicipal boardoffice of strategic and 5.15 long-range planning a corporate boundary map. Any proposed 5.16 boundary adjustment shall be delineated on a copy of the 5.17 corporate boundary map. 5.18 Subd. 2. [PLAT MAPS.] Any party initiating a boundary 5.19 adjustment, which includes platted land, shall file with the 5.20municipal boardoffice maps which are necessary to support and 5.21 identify the land description. The maps shall include copies of 5.22 plats. 5.23 Sec. 12. Minnesota Statutes 1996, section 414.02, is 5.24 amended to read: 5.25 414.02 [MUNICIPAL INCORPORATION.] 5.26 Subdivision 1. [INITIATING THE PROCEEDINGS.] This section 5.27 provides the exclusive method of incorporating a municipality in 5.28 Minnesota. Proceedings for incorporation of a municipality may 5.29 be initiated by petition of 100 or more property owners or by 5.30 resolution of the town board within an area which is not 5.31 included within the limits of any incorporated municipality and 5.32 which area includes land that has been platted into lots and 5.33 blocks in the manner provided by law. The petition or 5.34 resolution shall be submitted to theexecutive directoroffice 5.35 of strategic and long-range planning and shall state the 5.36 proposed name of the municipality, the names of all parties 6.1 entitled to mailed notice under section 414.09, the reason for 6.2 requesting incorporation, and shall include a proposed corporate 6.3 boundary map. 6.4 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a petition 6.5 or resolution made pursuant to subdivision 1, theexecutive6.6director of the boardoffice shall inform the office of 6.7 administrative hearings which shall designate a time and place 6.8 for a hearing in accordance with section 414.09. 6.9 Subd. 3. [BOARDFACTORS, ORDER.] In arriving atitsa 6.10 decision, theboardadministrative law judge shall consider the 6.11 following factors: 6.12 (a) Present population and number of households, past 6.13 population and projected population growth for the subject area; 6.14 (b) Quantity of land within the subject area; the natural 6.15 terrain including recognizable physical features, general 6.16 topography, major watersheds, soil conditions and such natural 6.17 features as rivers, lakes and major bluffs; 6.18 (c) Present pattern of physical development, planning, and 6.19 intended land uses in the subject area including residential, 6.20 industrial, commercial, agricultural, and institutional land 6.21 uses and the impact of the proposed action on those uses; 6.22 (d) The present transportation network and potential 6.23 transportation issues, including proposed highway development; 6.24 (e) Land use controls and planning presently being utilized 6.25 in the subject area, including comprehensive plans, policies of 6.26 the metropolitan council; and whether there are inconsistencies 6.27 between proposed development and existing land use controls; 6.28 (f) Existing levels of governmental services being provided 6.29 to the subject area, including water and sewer service, fire 6.30 rating and protection, law enforcement, street improvements and 6.31 maintenance, administrative services, and recreational 6.32 facilities and the impact of the proposed action on the delivery 6.33 of the services; 6.34 (g) Existing or potential environmental problems and 6.35 whether the proposed action is likely to improve or resolve 6.36 these problems; 7.1 (h) Fiscal impact on the subject area and adjacent units of 7.2 local government, including present bonded indebtedness; local 7.3 tax rates of the county, school district, and other governmental 7.4 units, including, where applicable, the net tax capacity of 7.5 platted and unplatted lands and the division of homestead and 7.6 nonhomestead property; and other tax and governmental aid 7.7 issues; 7.8 (i) Relationship and effect of the proposed action on 7.9 affected and adjacent school districts and communities; 7.10 (j) Whether delivery of services to the subject area can be 7.11 adequately and economically delivered by the existing 7.12 government; 7.13 (k) Analysis of whether necessary governmental services can 7.14 best be provided through the proposed action or another type of 7.15 boundary adjustment; 7.16 (1) Degree of contiguity of the boundaries of the subject 7.17 area and adjacent units of local government; and 7.18 (m) Analysis of the applicability of the state building 7.19 code. 7.20 Based upon these factors, theboard mayjudge shall order 7.21 the incorporationif it findsupon finding that (a) the property 7.22 to be incorporated is now, or is about to become, urban or 7.23 suburban in character, or (b) that the existing township form of 7.24 government is not adequate to protect the public health, safety, 7.25 and welfare, or (c) the proposed incorporation would be in the 7.26 best interests of the area under consideration. Theboardjudge 7.27 may deny the incorporation if the area, or a part thereof, would 7.28 be better served by annexation to an adjacent municipality. 7.29 Theboardjudge may alter the boundaries of the proposed 7.30 incorporation by increasing or decreasing the area to be 7.31 incorporated so as to include only that property which is now, 7.32 or is about to become, urban or suburban in character, or may 7.33 exclude property that may be better served by another unit of 7.34 government. The board may also alter the boundaries of the 7.35 proposed incorporation so as to follow visible, clearly 7.36 recognizable physical features for municipal boundaries. In all 8.1 cases, theboardjudge shall set forth the factors which are the 8.2 basis for the decision. 8.3 Notwithstanding any other provision of law to the contrary 8.4 relating to the number of wards which may be established, the 8.5boardjudge may provide for election of council members by 8.6 wards, not less than three nor more than seven in number, whose 8.7 limits are prescribed in theboardorder upon a finding that 8.8 area representation is required to accord proper representation 8.9 in the proposed incorporated area because of uneven population 8.10 density in different parts thereof or the existence of 8.11 agricultural lands therein which are in the path of suburban 8.12 development, but after four years from the effective date of an 8.13 incorporation the council of the municipality may by resolution 8.14 adopted by a four-fifths vote abolish the ward system and 8.15 provide for the election of all council members at large as in 8.16 other municipalities. 8.17 Theboard'sorder for incorporation shall provide for the 8.18 election of municipal officers in accordance with section 8.19 414.09. The plan of government shall be "Optional Plan A", 8.20 provided that an alternate plan may be adopted pursuant to 8.21 section 412.551, at any time. The ordinances of the township in 8.22 which the new municipality is located shall continue in effect 8.23 until repealed by the governing body of the new municipality. 8.24 Subd. 4. [EFFECTIVE DATE.] The incorporation shall be 8.25 effective upon the election and qualification of new municipal 8.26 officers or on such later date as is fixed by theboard in its8.27 order. 8.28 Sec. 13. Minnesota Statutes 1996, section 414.031, is 8.29 amended to read: 8.30 414.031 [ANNEXATION OF UNINCORPORATED PROPERTY BYBOARD8.31 ORDER.] 8.32 Subdivision 1. [INITIATING THE PROCEEDING.] A proceeding 8.33 for the annexation of unincorporated property abutting a 8.34 municipality may be initiated by submitting to theexecutive8.35directoroffice of strategic and long-range planning and the 8.36 affected township one of the following: 9.1 (a) A resolution of the annexing municipality; 9.2 (b) A resolution of the township containing the area 9.3 proposed for annexation; 9.4 (c) A petition of 20 percent of the property owners or 100 9.5 property owners, whichever is less, in the area to be annexed; 9.6 (d) A resolution of the municipal council together with a 9.7 resolution of the township board stating their desire to have 9.8 the entire township annexed to the municipality. 9.9 The petition, or resolution shall set forth the boundaries 9.10 of the territory proposed for annexation, the names of all 9.11 parties entitled to notice under section 414.09, and the reasons 9.12 for requesting annexation. If the proceeding is initiated by a 9.13 petition of property owners, the petition shall be accompanied 9.14 by a resolution of the annexing municipality supporting the 9.15 petition. 9.16 Subd. 3. [HEARING TIME, PLACE.] Upon receipt of a timely 9.17 objection to a petition or resolution initiating an annexation, 9.18 theexecutive directoroffice of strategic and long-range 9.19 planning shall designate a time and a place for a hearing in 9.20 accordance with section 414.09. If no timely objection is 9.21 received, the office shall order the annexation as requested by 9.22 the petition or resolution. 9.23 Subd. 4. [BOARDFACTORS, ORDER.] In arriving atitsa 9.24 decision, theboardadministrative law judge shall consider the 9.25 following factors: 9.26 (a) Present population and number of households, past 9.27 population and projected population growth of the subject area 9.28 and adjacent units of local government; 9.29 (b) Quantity of land within the subject area and adjacent 9.30 units of local government; and natural terrain including 9.31 recognizable physical features, general topography, major 9.32 watersheds, soil conditions and such natural features as rivers, 9.33 lakes and major bluffs; 9.34 (c) Degree of contiguity of the boundaries between the 9.35 annexing municipality and the subject area; 9.36 (d) Present pattern of physical development, planning, and 10.1 intended land uses in the subject area and the annexing 10.2 municipality including residential, industrial, commercial, 10.3 agricultural and institutional land uses and the impact of the 10.4 proposed action on those land uses; 10.5 (e) The present transportation network and potential 10.6 transportation issues, including proposed highway development; 10.7 (f) Land use controls and planning presently being utilized 10.8 in the annexing municipality and the subject area, including 10.9 comprehensive plans for development in the area and plans and 10.10 policies of the metropolitan council, and whether there are 10.11 inconsistencies between proposed development and existing land 10.12 use controls and the reasons therefore; 10.13 (g) Existing levels of governmental services being provided 10.14 in the annexing municipality and the subject area, including 10.15 water and sewer service, fire rating and protection, law 10.16 enforcement, street improvements and maintenance, administrative 10.17 services, and recreational facilities and the impact of the 10.18 proposed action on the delivery of said services; 10.19 (h) Existing or potential environmental problems and 10.20 whether the proposed action is likely to improve or resolve 10.21 these problems; 10.22 (i) Plans and programs by the annexing municipality for 10.23 providing needed governmental services to the subject area; 10.24 (j) An analysis of the fiscal impact on the annexing 10.25 municipality, the subject area, and adjacent units of local 10.26 government, including net tax capacity and the present bonded 10.27 indebtedness, and the local tax rates of the county, school 10.28 district, and township; 10.29 (k) Relationship and effect of the proposed action on 10.30 affected and adjacent school districts and communities; 10.31 (l) Adequacy of town government to deliver services to the 10.32 subject area; 10.33 (m) Analysis of whether necessary governmental services can 10.34 best be provided through the proposed action or another type of 10.35 boundary adjustment; and 10.36 (n) If only a part of a township is annexed, the ability of 11.1 the remainder of the township to continue or the feasibility of 11.2 it being incorporated separately or being annexed to another 11.3 municipality. 11.4 Based upon the factors, theboard mayjudge shall order the 11.5 annexation upon finding that (a)if it finds thatthe subject 11.6 area is now, or is about to become, urban or suburban in 11.7 character, or (b)if it finds thatmunicipal government in the 11.8 area proposed for annexation is required to protect the public 11.9 health, safety, and welfare, or (c)if it finds thatthe 11.10 annexation would be in the best interest of the subject 11.11 area.If only a part of a township is to be annexed, the board11.12shall consider whether the remainder of the township can11.13continue to carry on the functions of government without undue11.14hardship. The board shall deny the annexation if it finds that11.15the increase in revenues for the annexing municipality bears no11.16reasonable relation to the monetary value of benefits conferred11.17upon the annexed area.Theboardjudge may deny the annexation 11.18(a)if it appears that annexation of all or a part of the 11.19 property to an adjacent municipality would better serve the 11.20 interests of the residents of the propertyor (b) if the11.21remainder of the township would suffer undue hardship. 11.22 Theboardjudge may alter the boundaries of the area to be 11.23 annexed by increasing or decreasing the area so as to include 11.24 only that property which is now or is about to become urban or 11.25 suburban in character or to add property of such character 11.26 abutting the area proposed for annexation in order to preserve 11.27 or improve the symmetry of the area, or to exclude property that 11.28 may better be served by another unit of government. Theboard11.29 judge may also alter the boundaries of the proposed annexation 11.30 so as to follow visible, clearly recognizable physical 11.31 features. If theboardjudge determines that part of the area 11.32 would be better served by another municipality or township, 11.33 theboardjudge may initiate and approve annexation onitsthe 11.34 judge's own motion by conducting further hearings and issuing 11.35 orders pursuant to subdivisions 3 and 4. In all cases, 11.36 theboardjudge shall set forth the factors which are the basis 12.1 for the decision. 12.2 Subd. 4a. [PROCEEDINGS INITIATED BY JOINT RESOLUTION.] If 12.3 the proceeding has been initiated under subdivision 1, clause 12.4 (d), any annexation order shall include a provision for the 12.5 election of new municipal officers in accordance with section 12.6 414.09. The expanded municipality shall be governed by the home 12.7 rule charter or statutory form which governs the annexing 12.8 municipality, except that any ward system for the election of 12.9 council members shall be inoperable. The ordinances of both the 12.10 annexing municipality and the township shall continue in effect 12.11 within the former boundaries until repealed by the governing 12.12 body of the new municipality. 12.13 Notwithstanding any other provision of law to the contrary 12.14 theboardjudge may provide for election of council members by 12.15 wards, not less than three nor more than seven in number, whose 12.16 limits are prescribed in theboardorder, upon a finding that 12.17 area representation is required to accord proper representation 12.18 in the municipality because of uneven population density in 12.19 different parts thereof or the existence of agricultural lands 12.20 therein which are in the path of suburban development; but after 12.21 four years from the effective date of an annexation the council 12.22 of the municipality may by resolution adopted by a four-fifths 12.23 vote abolish the ward system and provide for the election of all 12.24 council members at large. 12.25 Until the effective date of the annexation order, the town 12.26 board and other officers of the town shall continue to exercise 12.27 their powers and duties under the town laws in that portion of 12.28 the municipality that was formerly the town, and the council and 12.29 other officers of the annexing municipality shall continue to 12.30 exercise their powers and duties in that portion of the expanded 12.31 municipality that was formerly the municipality. Thereafter the 12.32 town board and the council of the annexing municipality shall 12.33 have no jurisdiction within the municipality, and the new 12.34 municipal council and other new officers shall act in respect to 12.35 any matters previously undertaken by the town board of 12.36 supervisors or municipal council within the limits of the 13.1 expanded municipality, including the making of any improvement 13.2 and the levying of any special assessments therefor in the same 13.3 manner and to the same effect as if such improvement had been 13.4 undertaken by the municipality. 13.5 The new municipal council may continue or discontinue any 13.6 board that may have previously existed in the town or former 13.7 municipality. 13.8 Subd. 6. [EFFECTIVE DATE.] The annexation shall be 13.9 effective as of the date fixed in the annexation order or on 13.10 such later date as is fixed in the annexation order. A copy of 13.11 the annexation order must be delivered immediately by the 13.12executive director of the Minnesota municipal boardoffice of 13.13 strategic and long-range planning or the administrative law 13.14 judge to the appropriate county auditor or auditors. For the 13.15 purposes of taxation, if the annexation becomes effective on or 13.16 before August 1 of a levy year, the municipality may levy on the 13.17 annexed area beginning with that same levy year. If the 13.18 annexation becomes effective after August 1 of a levy year, the 13.19 town may continue to levy on the annexed area for that levy 13.20 year, and the municipality may not levy on the annexed area 13.21 until the following levy year. 13.22 Sec. 14. Minnesota Statutes 1996, section 414.0325, is 13.23 amended to read: 13.24 414.0325 [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 13.25 Subdivision 1. [INITIATING THE PROCEEDING.] One or more 13.26 townships and one or more municipalities, by joint resolution, 13.27 may designate an unincorporated area as in need of orderly 13.28 annexation. The joint resolution willand may confer 13.29 jurisdiction: (1) on theboardoffice of strategic and 13.30 long-range planning, or (2) if the resolution is adopted before 13.31 July 1, 1997, and the resolution requests a hearing but is not 13.32 heard before July 1, 1997, on the office of administrative 13.33 hearings, over annexations in the designated area and over the 13.34 various provisions in said agreement by submission of said joint 13.35 resolution to theexecutive directoroffice of strategic and 13.36 long-range planning. The resolution shall include a description 14.1 of the designated area and the reasons for designation. 14.2 Thereafter, an annexation of any part of the designated area may 14.3 be initiated by: 14.4 (1) submitting to theexecutive directoroffice of 14.5 strategic and long-range planning or, if the joint resolution 14.6 requests a hearing, to the office of administrative hearings, a 14.7 resolution of any signatory to the joint resolution; or 14.8 (2) theboardoffice of strategic and long-range planning 14.9 on its own motion; or 14.10 (3) as provided in section 414.033, subdivision 2a. 14.11 Whenever the pollution control agency or other state agency 14.12 pursuant to sections 115.03, 115.071, 115.49, or any law giving 14.13 a state agency similar powers, orders a municipality to extend a 14.14 municipal service to an area, such an order will confer 14.15 jurisdiction on theMinnesota municipal boardoffice of 14.16 strategic and long-range planning toconsiderrefer the matter 14.17 to the office of administrative hearings for determination, by 14.18 order of an administrative law judge, of the designation of the 14.19 area for orderly annexation. 14.20 If a joint resolution designates an area as in need of 14.21 orderly annexation and states that no alteration of its stated 14.22 boundaries is appropriate, theboardoffice of strategic and 14.23 long-range planning or the administrative law judge may review 14.24 and comment, but may not alter the boundaries. 14.25 If a joint resolution designates an area as in need of 14.26 orderly annexation, provides for the conditions for its 14.27 annexation, and states that no consideration by theboardoffice 14.28 of strategic and long-range planning is necessary, theboard14.29 office of strategic and long-range planning may review and 14.30 comment, but shall, within 30 days, order the annexation in 14.31 accordance with the terms of the resolution. 14.32Subd. 1a. [ELECTRIC UTILITY SERVICE NOTICE.] At least 6014.33days before a petition is filed under this section or section14.34414.033, the petitioner must notify the municipality that the14.35petitioner intends to file a petition for annexation. At least14.3630 days before a petition is filed for annexation, the15.1petitioner must be notified by the municipality that the cost of15.2electric utility service to the petitioner may change if the15.3land is annexed to the municipality. The notice must include an15.4estimate of the cost impact of any change in electric utility15.5services, including rate changes and assessments, resulting from15.6the annexation.15.7 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a joint 15.8 resolution for annexationof a part of the designated areaunder 15.9 this section that is adopted before July 1, 1995, and the 15.10 resolution requests a hearing but the matter is not heard before 15.11 July 1, 1995, theexecutive directoroffice of strategic and 15.12 long-range planning shall inform the office of administrative 15.13 hearings which shall set a time and place for a hearing in 15.14 accordance with section 414.09. No joint resolution adopted 15.15 under this section after June 30, 1995, may request a hearing. 15.16 Subd. 3. [BOARDFACTORS, ORDER.] In arriving atitsa 15.17 decision, theboardadministrative law judge shall consider the 15.18 factors in section 414.031, subdivision 4. 15.19 Based upon factors in section 414.031, subdivision 4, the 15.20board mayjudge shall order the annexation upon finding: 15.21(a) if it finds(1) that the subject area is now or is 15.22 about to become urban or suburban in character and that the 15.23 annexing municipality is capable of providing the services 15.24 required by the area within a reasonable time; or(b) if it15.25finds(2) that the existing township form of government is not 15.26 adequate to protect the public health, safety, and welfare; 15.27 or(c) if it finds(3) that annexation would be in the best 15.28 interests of the subject area. Theboardjudge may deny the 15.29 annexation if it conflicts with any provision of the joint 15.30 agreement. Theboardjudge may alter the boundaries of the 15.31 proposed annexation by increasing or decreasing the area so as 15.32 to include that property within the designated area which is in 15.33 need of municipal services or will be in need of municipal 15.34 services. 15.35 If the annexation is denied, no proceeding for the 15.36 annexation of substantially the same area may be initiated 16.1 within two years from the date of theboard'sjudge's order 16.2 unless the new proceeding is initiated by a majority of the 16.3 area's property owners and the petition is supported by affected 16.4 parties to the resolution. In all cases, theboardjudge shall 16.5 set forth the factors which are the basis for the decision. 16.6 Subd. 4. [EFFECTIVE DATE OF ANNEXATION.] Theboard'sorder 16.7 shall be effective upon the issuance of the order or at such 16.8 later time as is providedby the boardinitsthe order. A copy 16.9 of the annexation order must be delivered immediately by 16.10 theexecutive director of the Minnesota municipal boardoffice 16.11 of strategic and long-range planning or the administrative law 16.12 judge to the appropriate county auditor or auditors. For the 16.13 purposes of taxation, if the annexation becomes effective on or 16.14 before August 1 of a levy year, the municipality may levy on the 16.15 annexed area beginning with that same levy year. If the 16.16 annexation becomes effective after August 1 of a levy year, the 16.17 town may continue to levy on the annexed area for that levy 16.18 year, and the municipality may not levy on the annexed area 16.19 until the following levy year. 16.20 Subd. 5. [PLANNING IN THE AREA DESIGNATED FOR ORDERLY 16.21 ANNEXATION.] A joint resolution may provide for the 16.22 establishment of a board to exercise planning and land use 16.23 control authority within any area designated as an orderly 16.24 annexation area pursuant to this section, in the manner 16.25 prescribed by Minnesota Statutes 1976, section 471.59, 16.26 subdivisions 2 to 8, inclusive. 16.27 (a) A board established pursuant to a joint resolution 16.28 shall have all of the powers contained in sections 462.351 to 16.29 462.364, and shall have the authority to adopt and enforce the 16.30 uniform fire code promulgated pursuant to section 299F.011. 16.31 (b) The joint resolution may provide that joint planning 16.32 and land use controls shall apply to any or all parts of the 16.33 area designated for orderly annexation as well as to any 16.34 adjacent unincorporated or incorporated area, provided that the 16.35 area to be included shall be described in the joint resolution. 16.36 (c) If the joint resolution does not provide for joint 17.1 planning and land use control, the following procedures shall 17.2 govern: 17.3 If the county and townships agree to exclude the area from 17.4 their zoning and subdivision ordinances, the municipality may 17.5 extend its zoning and subdivision regulations to include the 17.6 entire orderly annexation area as provided in section 462.357, 17.7 subdivision 1, and section 462.358, subdivision 1. 17.8 If the county and township do not agree to such 17.9 extraterritorial zoning and subdivision regulation by the 17.10 municipality, zoning and subdivision regulation within the 17.11 orderly annexation area shall be controlled by a three-member 17.12 committee with one member appointed from each of the municipal, 17.13 town, and county governing bodies. This committee shall serve 17.14 as the "governing body" and "board of appeals and adjustments", 17.15 for purposes of sections 462.357 and 462.358, within the orderly 17.16 annexation area. The committee shall have all of the powers 17.17 contained in sections 462.351 to 462.364, and shall have the 17.18 authority to adopt and enforce the uniform fire code promulgated 17.19 pursuant to section 299F.011. 17.20 Sec. 15. Minnesota Statutes 1996, section 414.033, is 17.21 amended to read: 17.22 414.033 [ANNEXATION BY ORDINANCE.] 17.23 Subdivision 1. [UNINCORPORATED PROPERTY.] Unincorporated 17.24 property abutting a municipality may be annexed to the 17.25 municipality by ordinance as provided for in this section. 17.26 Subd. 2. [CONDITIONS.] A municipal council may by 17.27 ordinance declare land annexed to the municipality and any such 17.28 land is deemed to be urban or suburban in character or about to 17.29 become so if: 17.30 (1) the land is owned by the municipality; 17.31 (2) the land is completely surrounded by land within the 17.32 municipal limits; 17.33 (3) the land abuts the municipality and the area to be 17.34 annexed is 60 acres or less, and the area to be annexed is not 17.35 presently served by public sewer facilities or public sewer 17.36 facilities are not otherwise available, and the municipality 18.1 receives a petition for annexation from all the property owners 18.2 of the land;or18.3 (4) the land has been approved after August 1, 1995, by a 18.4 preliminary plat or final plat for subdivision to provide 18.5 residential lots that average 21,780 square feet or less in area 18.6 and the land is located within two miles of the municipal 18.7 limits; or 18.8 (5) the perimeter of the area to be annexed by a 18.9 municipality is 60 percent or more bordered by the municipality 18.10 and the area to be annexed is 40 acres or less. 18.11 Subd. 2a. [MUNICIPALITY MAY ANNEX.] Notwithstanding the 18.12 abutting requirement of subdivision 1, if land is owned by a 18.13 municipality or if all of the landowners petition for 18.14 annexation, and the land is within an existing orderly 18.15 annexation area as provided by section 414.0325, then the 18.16 municipality may declare the land annexed. This municipal 18.17 action does not otherwise affect the other terms and conditions 18.18 of existing orderly annexation agreements entered into pursuant 18.19 to section 414.0325. 18.20 Subd. 2b. [NOTICE REQUIRED.] Before a municipality may 18.21 adopt an ordinance under subdivision 2, clause (2), (3), or (4), 18.22 or subdivision 2a, a municipality must hold a public hearing and 18.23 give 30 days' written notice by certified mail to the town or 18.24 towns affected by the proposed ordinance and to all landowners 18.25 within and contiguous to the area to be annexed. 18.26Subd. 3. [PERIMETER, ACREAGE REQUIREMENTS.] If the18.27perimeter of the area to be annexed by a municipality is 6018.28percent or more bordered by the municipality and if the area to18.29be annexed is 40 acres or less, the municipality shall serve18.30notice of intent to annex upon the town board and the municipal18.31board, unless the area is appropriate for annexation by18.32ordinance under subdivision 2, clause (3). The town board shall18.33have 90 days from the date of service to serve objections with18.34the board. If no objections are forthcoming within the said 9018.35day period, such land may be annexed by ordinance. If18.36objections are filed with the board, the board shall conduct19.1hearings and issue its order as in the case of annexations under19.2section 414.031, subdivisions 3 and 4.19.3 Subd. 5. [PETITION, OBJECTIONS.] If the land is platted, 19.4 or, if unplatted, does not exceed 200 acres, a majority of the 19.5 property owners in number may petition the municipal council to 19.6 have such land included within the abutting municipality and, 19.7 within ten days thereafter, shall file copies of the petition 19.8 with theboardoffice of strategic and long-range planning, the 19.9 town board, the county board and the municipal council of any 19.10 other municipality which borders the land to be annexed. Within 19.11 90 days from the date of service, the town board or the 19.12 municipal council of such abutting municipality may submit 19.13 written objections to the annexation to theboardoffice and the 19.14 annexing municipality. Upon receipt of such objections, 19.15 theboard shall proceed to hold a hearing and issue its19.16ordermatter shall be heard and determined by order of an 19.17 administrative law judge in accordance with section 414.031, 19.18 subdivisions 3 and 4. If written objections are not submitted 19.19 within the time specified in this section and if the municipal 19.20 council determines that property proposed for the annexation is 19.21 now or is about to become urban or suburban in character, it may 19.22 by ordinance declare such land annexed to the municipality. If 19.23 the petition is not signed by all the property owners of the 19.24 land proposed to be annexed, the ordinance shall not be enacted 19.25 until the municipal council has held a hearing on the proposed 19.26 annexation after at least 30 days mailed notice to all property 19.27 owners within the area to be annexed. 19.28 Subd. 6. [IF ALSO INBOARDOTHER PROCEEDING.] Whenever a 19.29 proceeding for annexation is initiated under this section and 19.30 all or any part of the land is included in another boundary 19.31 adjustment proceeding pending before theboardoffice of 19.32 strategic and long-range planning or an administrative law 19.33 judge, no action thereon shall be taken by the municipality, 19.34 unless otherwise provided by an order of theboardauthority 19.35 before which the other proceeding is pending, until final 19.36 disposition has been made of the petition pending before the 20.1boardother authority. Under this section theboardauthority 20.2 before which the other proceeding is pending will accept a 20.3 waiver from all parties having a right to object, stating they 20.4 have no objections to the proposed annexation and waiving the 90 20.5 day period before an annexation ordinance may be adopted. 20.6 Subd. 7. [FILING; EFFECTIVE DATE; COPY, LEVIES.] Any 20.7 annexation ordinance provided for in this section must be filed 20.8 with theboardoffice of strategic and long-range planning, the 20.9 township, the county auditor and the secretary of state and is 20.10 final on the date the ordinance is approvedby the board. A 20.11 copy of the annexation ordinance must be delivered immediately 20.12 by the governing body of the municipality to the appropriate 20.13 county auditor or auditors. For the purposes of taxation, if 20.14 the annexation becomes effective on or before August 1 of a levy 20.15 year, the municipality may levy on the annexed area beginning 20.16 with that same levy year. If the annexation becomes effective 20.17 after August 1 of a levy year, the town may continue to levy on 20.18 the annexed area for that levy year, and the municipality may 20.19 not levy on the annexed area until the following levy year. 20.20 Subd. 9. [POPULATION.] Themunicipal boardoffice of 20.21 strategic and long-range planning or the administrative law 20.22 judge initsthe approval letter may state the population of the 20.23 area annexed by ordinance. The stated population shall be 20.24 effective on the date of the letter or at a later date set in 20.25 the letter. If population information is not contained in the 20.26 petition or notice of intent for annexation and the annexation 20.27 ordinance, theboardapproval letter shall not state the 20.28 population. 20.29 Subd. 10. [INFORMATION TOBOARDOFFICE.] Themunicipal20.30boardoffice of strategic and long-range planning or the 20.31 administrative law judge may, atitsthe discretion of the 20.32 office or the judge, require the city or property owners to 20.33 furnish additional information concerning an annexation by 20.34 ordinance to inform theboardrequesting authority about the 20.35 extent to which the proposed annexation conforms to the 20.36 statutory criteria set forth in sections 414.01, subdivision 1 21.1 and 414.031, subdivision 4. 21.2 Subd. 11. [FLOODPLAIN; SHORELAND AREA.] When a 21.3 municipality declares land annexed to the municipality under 21.4 subdivision 2, clause (3), or subdivision 2a, and the land is 21.5 within a designated floodplain, as provided by section 103F.111, 21.6 subdivision 4, or a shoreland area, as provided by section 21.7 103F.205, subdivision 4, the municipality shall adopt or amend 21.8 its land use controls to conform to chapter 103F, and any new 21.9 development of the annexed land shall be subject to chapter 103F. 21.10 Subd. 12. [PROPERTY TAXES.] When a municipality annexes 21.11 land under subdivision 2, clause (2), (3), or (4), or 21.12 subdivision 2a, property taxes payable on the annexed land shall 21.13 continue to be paid to the affected town or towns for the year 21.14 in which the annexation becomes effective. Thereafter, property 21.15 taxes on the annexed land shall be paid to the municipality. In 21.16 the first year following the year the land was annexed, the 21.17 municipality shall make a cash payment to the affected town or 21.18 towns in an amount equal to 90 percent of the property taxes 21.19 paid in the year the land was annexed; in the second year, an 21.20 amount equal to 70 percent of the property taxes paid in the 21.21 year the land was annexed; in the third year, an amount equal to 21.22 50 percent of the property taxes paid in the year the land was 21.23 annexed; in the fourth year, an amount equal to 30 percent of 21.24 the property taxes paid in the year the land was annexed; and in 21.25 the fifth year, an amount equal to ten percent of the property 21.26 taxes paid in the year the land was annexed. The municipality 21.27 and the affected township may agree to a different payment. 21.28 Subd. 13. [ELECTRIC UTILITY SERVICE NOTICE.] At least 60 21.29 days before a petition is filed under section 414.0325 or this 21.30 section, the petitioner must notify the municipality that the 21.31 petitioner intends to file a petition for annexation. At least 21.32 30 days before a petition is filed for annexation, the 21.33 petitioner must be notified by the municipality that the cost of 21.34 electric utility service to the petitioner may change if the 21.35 land is annexed to the municipality. The notice must include an 21.36 estimate of the cost impact of any change in electric utility 22.1 services, including rate changes and assessments, resulting from 22.2 the annexation. 22.3 Sec. 16. Minnesota Statutes 1996, section 414.035, is 22.4 amended to read: 22.5 414.035 [DIFFERENTIAL TAXATION.] 22.6 Whenevera boardan order, under section 414.031, 414.0325, 22.7 or 414.033, annexes part or all of a township to a municipality, 22.8 theboardorder may provide that the tax rate of the annexing 22.9 municipality on the area annexed shall be increased in 22.10 substantially equal proportions over not more than six years to 22.11 equality with the tax rate on the property already within the 22.12 municipality. The appropriate period, if any, shall be based on 22.13 the time reasonably required to effectively provide full 22.14 municipal services to the annexed area. 22.15 Sec. 17. Minnesota Statutes 1996, section 414.036, is 22.16 amended to read: 22.17 414.036 [MUNICIPAL REIMBURSEMENT.] 22.18 Whena boardan order under section 414.0325 annexes part 22.19 of a town to a municipality, the orderly annexation agreement 22.20 between the town and municipality may provide a reimbursement 22.21 from the municipality to the town for all or part of the taxable 22.22 property annexed as part of theboardorder. The reimbursement 22.23 shall be completed in substantially equal payments over not less 22.24 than two nor more than six years from the time of annexation. 22.25 Sec. 18. Minnesota Statutes 1996, section 414.041, is 22.26 amended to read: 22.27 414.041 [CONSOLIDATION OF MUNICIPALITIES.] 22.28 Subdivision 1. [INITIATING THE PROCEEDING.] Two or more 22.29 municipalities may be the subject of a single proceeding 22.30 provided that each municipality abuts at least one of the 22.31 included municipalities. The proceeding shall be initiated in 22.32 one of the following ways: 22.33 (a) Submitting to theexecutive directoroffice of 22.34 strategic and long-range planning a resolution of the city 22.35 council of each affected municipality; 22.36 (b) Submitting to theexecutive directoroffice a petition 23.1 signed by five percent or more of the resident voters of a 23.2 municipality who voted for governor at the last general 23.3 election; or 23.4 (c) By theboardoffice on its own motion. 23.5 The petition or resolution shall set forth the following 23.6 information about each included municipality: name, description 23.7 of boundaries, the reasons for requesting the consolidation and 23.8 the names of all parties entitled to mailed notice under section 23.9 414.09. The party initiating the proceeding shall serve copies 23.10 of the petition or resolution on all of the included 23.11 municipalities. 23.12 Subd. 2. [CONSOLIDATION COMMISSION.] Upon receipt of a 23.13 petition or a resolution requesting consolidation or upon 23.14 theboard'soffice's own motion, theboardoffice shall appoint 23.15 a consolidation commission from a list of ten candidates 23.16 submitted by each affected city council. The commission shall 23.17 be composed of not fewer than five members from each affected 23.18 municipality. From a separate list of three persons submitted 23.19 by each affected city council, theboardoffice shall appoint a 23.20 commission chair who is not a resident of an affected 23.21 municipality but who resides in an affected county. 23.22 No person is disqualified from serving on a consolidation 23.23 commission by reason of holding other elected or appointed 23.24 office. Consolidation commission members shall hold office 23.25 until a consolidation report has been issued by the commission. 23.26 Theboardoffice shall fill vacancies in the commission by 23.27 appointment. The consolidation commission shall make rules with 23.28 reference to its operation and procedures including quorum 23.29 requirements with reference to its operations and procedures. 23.30 Subd. 3. [COMMISSION'S HEARING AND REPORT.] The 23.31 consolidation commission shall conduct hearings regarding the 23.32 proposed consolidation. The hearings shall include, but are not 23.33 limited to, the following subjects: 23.34 (a) The contents of any city charter for the proposed 23.35 consolidated city or the form of government of the proposed 23.36 consolidated city; 24.1 (b) Analysis of whether a ward system shall be included in 24.2 the form of government of the proposed consolidated city; and 24.3 (c) Each factor consideredby the boardunder section 24.4 414.02, subdivision 3. 24.5 Based on these factors and upon other matters which come 24.6 before the consolidation commission, the commission shall issue 24.7 a report to themunicipal boardoffice with findings and 24.8 recommendations within two years from the date of theboard's24.9 initial appointment of the commission. 24.10 Subd. 4. [BOARD'SHEARING AND NOTICE.] Upon receipt of the 24.11 commission's report, theexecutive directoroffice of strategic 24.12 and long-range planning shall inform the office of 24.13 administrative hearings which shall designate a time and a place 24.14 for a hearing in accordance with section 414.09. 24.15 Subd. 5. [BOARD'SFACTORS, ORDER.] In arriving atits a 24.16 decision, theboardadministrative law judge shall consider the 24.17 factors in section 414.02, subdivision 3. 24.18 Theboardadministrative law judge shall consider and may 24.19 accept, amend, return to the commission for amendment or further 24.20 study, or reject the commission's findings and recommendations 24.21 based upon theboard'sjudge's written determination of what is 24.22 in the best interests of the affected municipalities. 24.23 Theboardjudge shall order the consolidationif it24.24findson finding that consolidation will be for the best 24.25 interests of the municipalities. In all cases, theboardjudge 24.26 shall set forth the factors which are the basis for the decision. 24.27 If theboardjudge orders consolidation,itthe judge shall 24.28 provide for election of new municipal officers in accordance 24.29 with section 414.09. If the most populous of the included 24.30 municipalities is a statutory city, the new municipality shall 24.31 be a statutory city and the plan of government shall be Optional 24.32 Plan A, provided that an alternate plan may be adopted pursuant 24.33 to section 412.551, at any time. If the most populous of the 24.34 included municipalities is a home rule charter city or organized 24.35 under a statute other than chapter 412, the new municipality 24.36 shall be governed by its home rule charter or the statutory form 25.1 under which it is governed except that any ward system for the 25.2 election of council members shall be inoperable. If the 25.3 commission's findings and recommendations include a proposed 25.4 home rule charter for the new municipality, theboardjudge may 25.5 initsthe order combine the issue of the adoption of the 25.6 charter and the vote on approval of the order for consolidation 25.7 into one question on the ballot, and shall submit it in a 25.8 special or general election as provided in section 410.10. The 25.9 ordinances of all of the included municipalities shall continue 25.10 in effect within their former boundaries until repealed by the 25.11 governing body of the new municipality. 25.12 Notwithstanding any other provision of law to the contrary, 25.13 theboardjudge may initsthe order establish a ward system in 25.14 the new municipality, in which event it shall establish not less 25.15 than three nor more than seven wards, each of which shall elect 25.16 one council member. When more than two years have elapsed after 25.17 consolidation, the governing body may, by a four-fifths vote, 25.18 abolish the ward system. 25.19 The new municipality shall assume the name of the most 25.20 populous municipality unless previous to the election another 25.21 name is chosen by joint resolution of a majority of the included 25.22 municipalities or by the consolidation commission. 25.23 The number of license privileges existing in the included 25.24 municipalities prior to consolidation and pursuant to state law 25.25 shall not be diminished as a result of the consolidation. 25.26 If the consolidation is denied or defeated in a referendum, 25.27 no proceeding for the consolidation of the same municipalities 25.28 may be initiated within two years from the date of theboard's25.29 order unless authorized by theboardjudge. 25.30 Subd. 6. [FINAL APPROVAL.] (a) If the consolidation was 25.31 initiated by a petition of the resident voters of a 25.32 municipality, theboard'sjudge's order for consolidation shall 25.33 be final upon approval by resolution of the city councils in 25.34 each of the affected municipalities unless ten percent or more 25.35 of the resident voters of an affected municipality who voted for 25.36 governor at the last general election petition the city council 26.1 for a referendum on the consolidation. The petition must be 26.2 submitted within 90 days of the final date of theboard'sorder 26.3 or the date of final approval of theboard'sorder by the city 26.4 councils, whichever is later. Upon receipt and verification of 26.5 the petition, theboardjudge shall order the municipalities to 26.6 conduct separate referenda at a general or special election in 26.7 each municipality on the same day, and the referenda shall be 26.8 held within six months of the receipt of the petition. Costs of 26.9 the respective referenda shall be borne by the respective 26.10 municipality. A majority of those voting in each city must 26.11 approve the proposed consolidation. The results of the 26.12 referenda shall be certified to theexecutive director of the26.13municipal boardjudge and the office of strategic and long-range 26.14 planning by the chief election judge within ten days after the 26.15 referenda. Theexecutive directoroffice shall upon receipt of 26.16 the certificate notify all parties of the election results. 26.17 (b) If the consolidation was initiated by a city council 26.18 resolution of each affected municipality, theboard'sorder for 26.19 consolidation shall be final unless ten percent or more of the 26.20 resident voters of an affected municipality petition for a 26.21 referendum as provided in clause (a). 26.22 (c) If the consolidation was initiated by theboard's26.23 office's own motion, no consolidation orderof the board26.24 involving existing municipalities shall become effective unless 26.25 adopted by the council of each affected municipality by a 26.26 majority vote and unless the consolidation orderof the boardis 26.27 approved by the qualified voters of the affected municipalities 26.28 at a general or special election set according to law. The form 26.29 of the ballot shall be fixed by theboardjudge; and, if a 26.30 majority of the votes cast on the question in each municipality 26.31 are in favor of its adoption, the orderof the boardshall 26.32 become effective as provided herein. 26.33 (d) Notwithstanding a disapproval of theboard'sorder for 26.34 consolidation by a city council of an affected municipality 26.35 required to approve theboard'sorder in clause (a) or (c), the 26.36board'sorder for consolidation shall nevertheless be deemed 27.1 approved by that city council if ten percent or more of the 27.2 resident voters of that municipality who voted for governor at 27.3 the last general election petition the city council for a 27.4 referendum on the consolidation as provided in clause (a), and a 27.5 majority of those voting in that municipality approve the 27.6board'sorder for consolidation. 27.7 Subd. 7. [DIFFERENTIAL TAXATION.] Where one municipality 27.8 is receiving substantially fewer municipal services, theboard27.9 judge may provide that the tax rate of the municipality shall be 27.10 increased in substantially equal proportions over a period of 27.11 not more than five years to equality with the tax rate in the 27.12 remainder of the new municipality. The period shall be 27.13 determined by theboardjudge on the basis of the period 27.14 reasonably required to provide substantially equal municipal 27.15 services. 27.16 Subd. 8. [EFFECTIVE DATE.] The consolidation shall be 27.17 effective upon the election and qualification of new municipal 27.18 officers, or at such later date as set by theboard in itsorder. 27.19 Sec. 19. Minnesota Statutes 1996, section 414.051, is 27.20 amended to read: 27.21 414.051 [BOARD'SOFFICE'S REVIEW OF TOWNSHIPS ACCORDING TO 27.22 POPULATION.] 27.23 After each federal census, theboardoffice of strategic 27.24 and long-range planning may determine the townships which have a 27.25 population in excess of 2,000 exclusive of any municipality or 27.26 part of a municipality within the township and make 27.27 recommendations which it deems necessary and reasonable to the 27.28 board of any such township. 27.29 Sec. 20. Minnesota Statutes 1996, section 414.06, is 27.30 amended to read: 27.31 414.06 [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] 27.32 Subdivision 1. [INITIATING THE PROCEEDING.] Property which 27.33 is situated within a municipality and abutting the municipal 27.34 boundary, rural in character and not developed for urban 27.35 residential, commercial, or industrial purposes may be detached 27.36 from the municipality according to the following procedure. The 28.1 proceeding may be initiated by submitting to theboardoffice of 28.2 strategic and long-range planning a resolution of the 28.3 municipality to which the land is attached or by submittingto28.4the boarda petition of all of the property owners of the land 28.5 to be detached if the area is less than 40 acres or of 75 28.6 percent of the property owners if over 40 acres. The petition 28.7 or resolution shall set forth the boundaries and the area of the 28.8 land to be detached, the number and character of the buildings, 28.9 the resident population, and the municipal improvements, if any, 28.10 in the area. 28.11 Subd. 2. [HEARING, IF NEEDED.] If both a resolution of the 28.12 municipality and a petition by all the property owners are 28.13 submitted, no hearing is necessary. In any other case, upon 28.14 receipt of a timely objection to a petition or resolution, 28.15 theexecutive director of the boardoffice of strategic and 28.16 long-range planning shall inform the office of administrative 28.17 hearings which shall designate a time and place for a hearing in 28.18 accordance with section 414.09. If no timely objection is 28.19 received, the office of strategic and long-range planning shall 28.20 order the detachment as requested in the petition or resolution. 28.21 Subd. 3. [BOARD'SORDER.] Upon completion of the hearing, 28.22 theboardjudge may order the detachmentif it findson finding 28.23 that the requisite number of property owners have signed the 28.24 petition if initiated by the property owners, that the property 28.25 is rural in character and not developed for urban residential, 28.26 commercial or industrial purposes, that the property is within 28.27 the boundaries of the municipality and abuts a boundary, that 28.28 the detachment would not unreasonably affect the symmetry of the 28.29 detaching municipality, and that the land is not needed for 28.30 reasonably anticipated future development. Theboardjudge may 28.31 deny the detachment ifitthe judge finds that the remainder of 28.32 the municipality cannot continue to carry on the functions of 28.33 government without undue hardship. Theboardjudge shall have 28.34 authority to decrease the area of property to be detached and 28.35 may include only a part of the proposed area to be detached. If 28.36 the tract abuts more than one township, it shall become a part 29.1 of each township, being divided by projecting through it the 29.2 boundary line between the townships. The detached area may be 29.3 relieved of the primary responsibility for existing indebtedness 29.4 of the municipality and be required to assume the indebtedness 29.5 of the township of which it becomes a part, in such proportion 29.6 as theboardjudge shall deem just and equitable having in view 29.7 the amount of taxes due and delinquent and the indebtedness of 29.8 each township and the municipality affected, if any, and for 29.9 what purpose the same was incurred, all in relation to the 29.10 benefit inuring to the detached area as a result of the 29.11 indebtedness and the last net tax capacity of the taxable 29.12 property in each township and municipality. 29.13 Subd. 4. [EFFECTIVE DATE.] The detachment shall be 29.14 effective upon the issuance of theboard'sorder, or at such 29.15 later date, as provided by theboard in itsorder. A copy of 29.16 the detachment order must be delivered immediately by 29.17 theexecutive director of the Minnesota municipal boardoffice 29.18 of strategic and long-range planning or the administrative law 29.19 judge to the appropriate county auditor or auditors. For the 29.20 purposes of taxation, if the detachment becomes effective on or 29.21 before August 1 of a levy year, the town or towns acquiring the 29.22 detached area may levy on it beginning with that same levy 29.23 year. If the detachment becomes effective after August 1 of a 29.24 levy year, the municipality may continue to levy on the detached 29.25 area for that levy year, and the town or towns acquiring the 29.26 detached area may not levy on it until the following levy year. 29.27 Sec. 21. Minnesota Statutes 1996, section 414.061, is 29.28 amended to read: 29.29 414.061 [CONCURRENT DETACHMENT AND ANNEXATION OF 29.30 INCORPORATED LAND.] 29.31 Subdivision 1. [INITIATING THE PROCEEDING.] Property of 29.32 one municipality which abuts another may be concurrently 29.33 detached and annexed by the procedure set forth in this 29.34 section. The proceeding shall be initiated by submitting to the 29.35executive directoroffice of strategic and long-range planning 29.36 resolutions of both municipalities describing the land and 30.1 stating their desire to detach and annex the land. 30.2 Subd. 2. [BOARD'SORDER.] If the resolutions are in order, 30.3 theboardoffice may order the detachment and annexation. 30.4 Subd. 3. [EFFECTIVE DATE.] The concurrent detachment and 30.5 annexation shall be effective upon the issuance of theboard's30.6 order, or at such later date as provided by theboard in its30.7 order. A copy of the annexation order must be delivered 30.8 immediately by theexecutive director of the Minnesota municipal30.9boardoffice of strategic and long-range planning to the 30.10 appropriate county auditor or auditors. For the purposes of 30.11 taxation, if the annexation becomes effective on or before 30.12 August 1 of a levy year, the municipality acquiring the detached 30.13 area of another municipality may levy on it beginning with that 30.14 same levy year. If the annexation becomes effective after 30.15 August 1 of a levy year, the municipality losing the detached 30.16 area may continue to levy on it for that levy year, and the 30.17 municipality acquiring the detached area may not levy on it 30.18 until the following levy year. 30.19 Subd. 4. [BOARDOFFICE INITIATION.] Theboardoffice may 30.20 initiate proceedings for the concurrent detachment and 30.21 annexation of portions of one municipality completely surrounded 30.22 by another municipality, on its own motion or upon the petition 30.23 of all of the owners of property in the completely surrounded 30.24 area. In such cases theboardoffice of administrative hearings 30.25 shall conduct hearings and issue its order pursuant to section 30.26 414.09. In arriving at its decision, theboardoffice shall 30.27 consider the factors in section 414.02, subdivision 3. 30.28 Theboardoffice shall order the proposed action if it finds 30.29 that it will be for the best interests of the municipalities and 30.30 the property owners. In all cases, theboardoffice shall set 30.31 forth the factors which are the basis for the decision. 30.32 Subd. 5. [PROPERTY OWNER INITIATION.] Property owners may 30.33 initiate proceedings for the concurrent detachment of their 30.34 property from one municipality and its annexation to an adjacent 30.35 municipality by a petition signed by all of them that they 30.36 submit to theboardoffice of strategic and long-range planning 31.1 accompanied by a resolution of the city council of at least one 31.2 of the affected municipalities. Theboardoffice of strategic 31.3 and long-range planning shall inform the office of 31.4 administrative hearings which shall conduct hearings and issue 31.5 its order pursuant to section 414.09. In arriving at its 31.6 decision, the board shall consider the factors in section 31.7 414.02, subdivision 3. The board shall order the proposed 31.8 action if it finds that it will be for the best interests of the 31.9 municipalities and the property owner. In all cases, the board 31.10 shall set forth the factors which are the basis for the decision. 31.11 Sec. 22. Minnesota Statutes 1996, section 414.063, is 31.12 amended to read: 31.13 414.063 [JOINT AGREEMENTS.] 31.14 After notice and hearing as provided in section 414.09, the 31.15boardadministrative law judge may include provisions of joint 31.16 agreements between political subdivisions initsthe orders. 31.17 Sec. 23. Minnesota Statutes 1996, section 414.067, is 31.18 amended to read: 31.19 414.067 [APPORTIONMENT OF ASSETS AND OBLIGATIONS.] 31.20 Subdivision 1. [TOWNSHIP OR MUNICIPALITY DIVIDED.] 31.21 Wheneverthe boarda judge divides an existing governmental 31.22 unit, theboardjudge may apportion the property and obligations 31.23 between the governmental unit adding territory and the 31.24 governmental unit from which the territory was obtained. The 31.25 apportionment shall be made in a just and equitable manner 31.26 having in view the value of the existing township or municipal 31.27 property located in the area to be added, the assets, value, and 31.28 location of all the taxable property in the existing township or 31.29 municipality, the indebtedness, the taxes due and delinquent, 31.30 other revenue accrued but not paid to the existing township or 31.31 municipality and the ability of any remainder of the township or 31.32 municipality to function as an effective governmental unit. The 31.33 order shall not relieve any property from any tax liability for 31.34 payment for any bonded obligation, but the taxable property in 31.35 the new municipality may be made primarily liable thereon. 31.36 Subd. 2. [ENTIRE TOWNSHIP OR MUNICIPALITY.] When an entire 32.1 township is annexed by an existing municipality, or an entire 32.2 township is incorporated into a new municipality, or a 32.3 municipality is consolidated into a new municipality, all money, 32.4 claims, or properties, including real estate owned, held, or 32.5 possessed by the annexed, incorporated township or municipality, 32.6 and any proceeds or taxes levied by such town or municipality, 32.7 collected or uncollected, shall become and be the property of 32.8 the new or annexing municipality with full power and authority 32.9 to use and dispose of the same for public purposes as the 32.10 council or new annexing municipality may deem best, subject to 32.11 the rights of creditors. Any bonded indebtedness of a town or 32.12 former municipality annexed to an existing municipality or 32.13 incorporated or consolidated into a new municipality shall be 32.14 borne only by that property within the boundaries of the former 32.15 town or municipality, provided, however, the units of government 32.16 concerned may by resolution of their governing bodies agree that 32.17 the new municipality shall assume the bonded indebtedness of the 32.18 former units of government existing and outstanding at the time 32.19 of annexation, incorporation, or consolidation. 32.20 Subd. 3. [REVISION OF TAX RECORDS; REDISTRIBUTION OF 32.21 LEVIES.] In an apportionment made under this section, theboard32.22 judge may order the county auditor to revise tax records and 32.23 respread levies at any time prior to December 15 or order the 32.24 county treasurer to redistribute taxes levied and receivable. 32.25 Sec. 24. Minnesota Statutes 1996, section 414.07, is 32.26 amended to read: 32.27 414.07 [APPEALS.] 32.28 Subdivision 1. [ORDERS OFBOARDJUDGE, TIME LIMITATION.] 32.29 All orders of theboardadministrative law judge shall be issued 32.30 within one year from the date of the day of the first hearing 32.31 thereon provided that the time may be extended for a fixed 32.32 additional period upon consent of all parties of record. 32.33 Failure to so order shall be deemed to be an order denying the 32.34 matterbefore the board.An appeal may be taken fromJudicial 32.35 review of such failure to so order may be taken in the same 32.36 manner asan appeal fromjudicial review of an order as provided 33.1 in subdivision 2. 33.2 Subd. 2. [GROUNDS FOR APPEAL.] Any person aggrieved by any 33.3 order of theboard may appeal to the district court upon the33.4following grounds:33.5(a) that the board had no jurisdiction to act;33.6(b) that the board exceeded its jurisdiction;33.7(c) that the order of the board is arbitrary, fraudulent,33.8capricious or oppressive or in unreasonable disregard of the33.9best interests of the territory affected; or33.10(d) that the order is based upon an erroneous theory of law.33.11The appeal shall be taken in the district court in the33.12county in which the majority of the area affected is located.33.13The appeal shall not stay the effect of the order. All notices33.14and other documents shall be served on both the executive33.15director and the attorney general's assistant assigned to the33.16board.33.17If the court determines that the action of the board33.18involved is unlawful or unreasonable or is not warranted by the33.19evidence in case an issue of fact is involved, the court may33.20vacate or suspend the action of the board involved, in whole or33.21in part, as the case requires. The matter shall then be33.22remanded to the board for further action in conformity with the33.23decision of the court.33.24To render a review of a board order effectual, the33.25aggrieved person shall file with the court administrator of the33.26district court of the county in which the majority of the area33.27is located, within 30 days of the order, an application for33.28review together with the grounds upon which the review is sought.33.29An appeal lies from the district court as in other civil33.30casesadministrative law judge is entitled to judicial review of 33.31 the order as provided in sections 14.636 to 14.69. 33.32 Sec. 25. Minnesota Statutes 1996, section 414.09, is 33.33 amended to read: 33.34 414.09 [UNIFORMHEARING PROCEDURESOF BOARD.] 33.35 Subdivision 1. [HEARINGS.] Proceedings initiated by the 33.36 submission of an initiating document or by theboard ofoffice 34.1 of strategic and long-range planning on its own motion shall 34.2 come on for hearing within 30 to 60 days from receipt of the 34.3 document by theboardoffice or from the date ofboardoffice 34.4 action and theboardoffice or administrative law judge must 34.5 submititsan order no later than one year from the date of the 34.6 day of the first hearing.In any proceeding before the board34.7and upon the request of any party, the board shall meet34.8physically rather than by means of electronic media.The place 34.9 of the hearing shall be in the county where a majority of the 34.10 affected territory is situated, and shall be established for the 34.11 convenience of the parties. Theexecutive directoroffice or 34.12 judge shall mail notice of the hearing to the following 34.13 parties: the township or municipality presently governing the 34.14 affected territory; any township or municipality abutting the 34.15 affected territory; the county where the affected territory is 34.16 situated; and each planning agency which has jurisdiction over 34.17 the affected area. Theexecutive directoroffice or judge shall 34.18 cause notice of the hearing to be published for two successive 34.19 weeks in a legal newspaper of general circulation in the 34.20 affected area. When theboardadministrative law judge 34.21 exercisesitsauthority to change the boundaries of the affected 34.22 area so as to increase the quantity of the land, the hearing 34.23 shall be recessed and reconvened upon two weeks published notice 34.24 in a legal newspaper of general circulation in the affected area. 34.25 Subd. 2. [TRANSMITTAL OFBOARD'SORDER.] Theexecutive34.26directoroffice or judge shall cause copies of theboard'sorder 34.27 to be mailed to all parties entitled to mailed notice of hearing 34.28 under subdivision 1, the secretary of state, the department of 34.29 revenue, the state demographer, individual property owners if 34.30 initiated in that manner, affected county auditor, and any other 34.31 party of record. The affected county auditor shall record the 34.32 order against the affected property. 34.33 Subd. 3. [ELECTIONS OF MUNICIPAL OFFICERS.] An order 34.34 approving an incorporation or consolidation pursuant to this 34.35 chapter shall set a date for this election of new municipal 34.36 officers not less than 45 days nor more than 60 days after the 35.1 issuance of such order. Theboardoffice shall appoint an 35.2 acting clerk for election purposes, at least three election 35.3 judges who shall be residents of the new municipality, and shall 35.4 designate polling places within the new municipality. 35.5 The acting clerk shall prepare the official election 35.6 ballot. Affidavits of candidacy may be filed by any person 35.7 eligible to hold municipal office not more than four weeks nor 35.8 less than two weeks before the date designatedby the boardfor 35.9 the election. 35.10 The election shall be conducted in conformity with the 35.11 charter and the laws for conducting municipal elections insofar 35.12 as applicable. Any person eligible to vote at a township or 35.13 municipal election within the area of the new municipality, is 35.14 eligible to vote at such election. 35.15 Any excess in the expense of conducting the election over 35.16 receipts from filing fees shall be a charge against the new 35.17 municipality; any excess of receipts shall be deposited in the 35.18 treasury of the new municipality. 35.19 Sec. 26. [APPROPRIATION.] 35.20 The following sums are appropriated from the general fund 35.21 to the office named to perform the powers and duties transferred 35.22 by sections 2 to 25, for the biennium ending June 30, 1999: 35.23 $....... to the office of strategic and long-range 35.24 planning; 35.25 $....... to the office of administrative hearings. 35.26 Sec. 27. [REVISOR INSTRUCTION.] 35.27 In the next edition of Minnesota Statutes, the revisor of 35.28 statutes shall substitute any of the following, as appropriate, 35.29 for "municipal board" or "board" where those terms are used to 35.30 refer to duties of the abolished municipal board: 35.31 (1) "office of strategic and long-range planning" or 35.32 "office"; or 35.33 (2) "office of administrative hearings" or "office" or 35.34 "administrative law judge" or "judge." 35.35 Sec. 28. [REPEALER.] 35.36 Minnesota Statutes 1996, sections 414.01, subdivisions 2, 36.1 5, 6a, 7a, 8, 10, 11, and 12; 414.0325, subdivision 1a; 414.033, 36.2 subdivision 3; and 414.08, are repealed. 36.3 Sec. 29. [EFFECTIVE DATE.] 36.4 This act is effective July 1, 1997.