HF 1297

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:47am

A bill for an act
relating to local government; amending the municipal boundary adjustment law;
amending Minnesota Statutes 2008, sections 13.02, subdivision 11; 394.33,
subdivision 1; 414.01, subdivisions 1a, 1b; 414.011, by adding a subdivision;
414.031, subdivision 4; 414.0325, subdivision 3; 414.033, subdivisions 2, 12;
414.0333; 414.036; 414.041, subdivisions 3, 5; 414.061, subdivisions 4, 5;
462.357, subdivision 1; 462.358, subdivision 1a; proposing coding for new
law in Minnesota Statutes, chapter 414; repealing Minnesota Statutes 2008,
sections 414.02; 414.031, subdivision 1a; 414.0325, subdivision 1a; 414.033,
subdivisions 10, 13; 414.08; 462.3535; 462.3585; 572A.03, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 13.02, subdivision 11, is amended to read:

Subd. 11.

Political subdivision.

"Political subdivision" means any county, statutory
or home rule charter city, school district, special district, deleted text begin any deleted text end town deleted text begin exercising powers
under chapter 368 and located in the metropolitan area, as defined in section 473.121,
subdivision 2 deleted text end , and any board, commission, district new text begin , new text end or authority created pursuant to law,
local ordinance or charter provision. It includes any nonprofit corporation which is a
community action agency organized pursuant to the Economic Opportunity Act of 1964
(Public Law 88-452) as amended, to qualify for public funds, or any nonprofit social
service agency which performs services under contract to a government entity, to the
extent that the nonprofit social service agency or nonprofit corporation collects, stores,
disseminates, and uses data on individuals because of a contractual relationship with a
government entity.

Sec. 2.

Minnesota Statutes 2008, section 394.33, subdivision 1, is amended to read:

Subdivision 1.

Not inconsistent.

new text begin Unless otherwise provided by law, new text end the governing
body of any town including any town with the powers of a statutory city pursuant to law
may continue to exercise the authority to plan and zone as provided by law, but after
the adoption of official controls for a county or portion thereof by the board of county
commissioners no town shall enact or enforce official controls inconsistent with or less
restrictive than the standards prescribed in the official controls adopted by the board.
Nothing in this section shall limit any town's power to adopt official controls, including
shoreland regulations which are more restrictive than provided in the controls adopted by
the county. Upon the adoption or amendment of any official controls the governing body
of the town shall record a certified copy thereof with the county recorder or registrar of
titles. A certified copy of any official controls of any town which are in effect on August
1, 1974, shall also be filed by the governing body of the town with the county recorder or
registrar of titles for record within one year from August 1, 1974.

Sec. 3.

Minnesota Statutes 2008, section 414.01, subdivision 1a, is amended to read:

Subd. 1a.

Legislative findings.

The legislature finds that:

(1) sound urban development and preservation of agricultural land and open spaces
through land use planning is essential to the continued economic growth of this state;

(2) municipal government most efficiently provides governmental services in areas
intensively developed for residential, commercial, industrial, and governmental purposes;
and township government most efficiently provides governmental services in areas used or
developed for agricultural, open space, and rural residential purposes;

(3) the public interest requires that municipalities be formed when there exists or will
likely exist the necessary resources to provide for their economical and efficient operation;

(4) annexation to existing municipalities of unincorporated areas unable to supply
municipal services should be facilitated; deleted text begin and deleted text end

(5) joint resolutions for orderly annexation, consolidation of municipalities, mergers
of towns and municipalities, long-range joint powers planning or other cooperative efforts
among counties, cities, and towns should be encouraged new text begin ; and
new text end

new text begin (6) sound land use planning is necessary for Minnesota to achieve its goals in
greenhouse gas reduction through energy conservation, the reduction in the number and
length of vehicle trips, and maximizing the use of transit and existing transportation
infrastructure new text end .

Sec. 4.

Minnesota Statutes 2008, section 414.01, subdivision 1b, is amended to read:

Subd. 1b.

Goals in promoting, regulating municipal development.

The chief
administrative law judge may promote and regulate development of municipalities:

(1) to provide for the extension of municipal government to areas which are
developed or are in the process of being developed for intensive use for residential,
commercial, industrial, institutional, and governmental purposes or are needed for such
purposes; and

(2) to protect the stability of unincorporated areas which are used or developed for
agricultural, open space, and rural residential purposes and are not presently needed for
more intensive uses; deleted text begin and
deleted text end

(3) to protect the integrity of land use planning in municipalities and unincorporated
areas so that the public interest in efficient local government will be properly recognized
and served new text begin ; and
new text end

new text begin (4) to reduce greenhouse gas emissions through land use practices that encourage
compact urban development new text end .

Sec. 5.

Minnesota Statutes 2008, section 414.011, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Urban or suburban in character. new text end

new text begin "Urban or suburban in character"
means any area, property, or collection of properties where actual or planned residential
densities exceed one unit per 40 acres or any area where actual or planned governmental,
institutional, commercial, or industrial development exists, excluding industrial
development that is appropriate for rural settings such as those connected with agricultural,
forestry, mining, or energy production industries.
new text end

Sec. 6.

new text begin [414.023] INCORPORATIONS PROHIBITED AFTER JUNE 1, 2009.
new text end

new text begin The chief administrative law judge must not order any municipal incorporations
after June 1, 2009.
new text end

Sec. 7.

Minnesota Statutes 2008, section 414.031, subdivision 4, is amended to read:

Subd. 4.

Relevant factors, order.

(a) In arriving at a decision, the presiding
administrative law judge shall consider the following sources and factors:

(1) deleted text begin recordings and public documents from joint informational meetings under
section 414.0333 relevant to other factors listed in this subdivision;
deleted text end

deleted text begin (2) deleted text end present population and number of households, past population and projected
population growth of the annexing municipality and subject area and adjacent units of
local government;

deleted text begin (3) deleted text end new text begin (2) new text end quantity of land within the subject area and adjacent units of local government;
and natural terrain including recognizable physical features, general topography, major
watersheds, soil conditions and such natural features as rivers, lakes and major bluffs;

deleted text begin (4) deleted text end new text begin (3) new text end degree of contiguity of the boundaries between the annexing municipality
and the subject area;

deleted text begin (5) deleted text end new text begin (4) new text end present pattern of physical development, planning, and intended land
uses in the subject area and the annexing municipality including residential, industrial,
commercial, agricultural and institutional land uses and the impact of the proposed action
on those land uses;

deleted text begin (6) deleted text end new text begin (5) new text end the present transportation network and potential transportation issues,
including proposed highway development;

deleted text begin (7) deleted text end new text begin (6) new text end land use controls and planning presently being utilized in the annexing
municipality and the subject area, including comprehensive plans for development in
the area and plans and policies of the Metropolitan Council, and whether there are
inconsistencies between proposed development and existing land use controls and the
reasons therefore;

deleted text begin (8) deleted text end new text begin (7) new text end existing levels of governmental services being provided in the annexing
municipality and the subject area, including water and sewer service, fire rating and
protection, law enforcement, street improvements and maintenance, administrative
services, and recreational facilities and the impact of the proposed action on the delivery
of said services;

deleted text begin (9) the implementation of previous annexation agreements and orders; deleted text end

deleted text begin (10) deleted text end new text begin (8) new text end existing or potential environmental problems and whether the proposed
action is likely to improve or resolve these problems;

deleted text begin (11) deleted text end new text begin (9) new text end plans and programs by the annexing municipality for providing deleted text begin needed and
enhanced deleted text end governmental services to the subject area deleted text begin in a cost-effective and feasible manner
within a reasonable time from the date of the annexation deleted text end ;

deleted text begin (12) deleted text end new text begin (10) new text end an analysis of the fiscal impact on the annexing municipality, the subject
area, and adjacent units of local government, including net tax capacity and the present
bonded indebtedness, and the local tax rates of the county, school district, and township;

deleted text begin (13) deleted text end new text begin (11) new text end relationship and effect of the proposed action on affected and adjacent
school districts and communities;

deleted text begin (14) adequacy of town government to deliver services to the subject area;
deleted text end

deleted text begin (15) analysis of whether necessary governmental services can best be provided
through the proposed action or another type of boundary adjustment;
deleted text end

deleted text begin (16) deleted text end new text begin (12) new text end if only a part of a township is annexed, the ability of the remainder of the
township to continue deleted text begin or the feasibility of it being incorporated separately or being deleted text end new text begin , to be new text end
annexed to another municipality new text begin , or to be merged with the annexing municipality new text end ; deleted text begin and deleted text end

deleted text begin (17) deleted text end new text begin (13) new text end information received by the presiding administrative law judge from the
tour required under subdivision 3a deleted text begin . deleted text end new text begin ; and
new text end

new text begin (14) analysis of whether the annexation is consistent with the state's goals in
reducing vehicle miles traveled, and is likely to help the state achieve its greenhouse
gas reduction goals by encouraging development that would be more dense than is
contemplated by township or county comprehensive planning and land use controls.
new text end

new text begin (b) The presiding administrative law judge must not consider as evidence statements
made during a joint informational meeting under section 414.0333 or statements made
during any subsequent public meeting that may be held in accordance with a hearing under
sections 414.031 and 414.09, unless the statements are subject to examination or cross
examination by counsel for either the town or municipality or other party to the proceeding.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Based upon the factors, the presiding administrative law judge deleted text begin may deleted text end new text begin must new text end
order the annexation on finding:

(1) that the subject area is now, or is about to become, urban or suburban in character;

(2) that municipal government in the area proposed for annexation is required to
protect the public health, safety, and welfare;

new text begin (3) that the annexing municipality has a plan to provide needed services to the
subject area including water and sewer in a reasonable amount of time;
new text end

new text begin (4) that municipal land use planning is more likely to result in fewer vehicle miles
traveled and more likely to help the state achieve its goals in greenhouse gas reduction
than existing county or township land use controls; new text end or

deleted text begin (3) deleted text end new text begin (5) new text end that the annexation would be in the best interest of the subject area.

deleted text begin (c) deleted text end new text begin (d) new text end If only a part of a township is to be annexed, the presiding administrative
law judge shall consider whether the remainder of the township can continue to carry on
the functions of government without undue hardship. new text begin If the presiding administrative law
judge finds that the remaining areas of the township would suffer undue hardship, the
presiding administrative law judge must order the annexation of the entire township to the
municipality or to another municipality adjoining the township.
new text end

deleted text begin (d) The presiding administrative law judge shall deny the annexation on finding that
the increase in revenues for the annexing municipality bears no reasonable relation to the
monetary value of benefits conferred upon the annexed area.
deleted text end

(e) The presiding administrative law judge may deny the annexation on finding deleted text begin : deleted text end

deleted text begin (1) deleted text end that annexation of all or a part of the property to an adjacent municipality would
better serve the interests of the residents of the property deleted text begin ; or deleted text end

deleted text begin (2) that the remainder of the township would suffer undue hardship deleted text end .

(f) The presiding administrative law judge may alter the boundaries of the area to be
annexed by increasing or decreasing the area so as to include only that property which
is now or is about to become urban or suburban in character or to add property of such
character abutting the area proposed for annexation in order to preserve or improve the
symmetry of the area, or to exclude property that may better be served by another unit
of government.

(g) The presiding administrative law judge may also alter the boundaries of the
proposed annexation so as to follow visible, clearly recognizable physical features.

(h) If the presiding administrative law judge determines that part of the area would
be better served by another municipality or township, the presiding administrative law
judge may initiate and approve annexation by conducting further hearings and issuing
orders pursuant to subdivisions 3 and 4.

(i) In all cases, the presiding administrative law judge shall set forth new text begin and explain new text end the
factors which are the basis for the decision.

Sec. 8.

Minnesota Statutes 2008, section 414.0325, subdivision 3, is amended to read:

Subd. 3.

Relevant factors, order.

(a) deleted text begin In arriving at a decision, the chief
administrative law judge shall consider the factors in section 414.031, subdivision 4. deleted text end

deleted text begin (b) Based upon factors in section 414.031, subdivision 4, deleted text end The chief administrative
law judge deleted text begin may deleted text end new text begin shall new text end order the annexation:

new text begin (1) on finding that the orderly annexation petition complies with relevant state
statutes; or
new text end

deleted text begin (1) deleted text end new text begin (2) new text end on finding that the subject area is now or is about to become urban or
suburban in character and that the annexing municipality is capable of providing the
services required by the area within a reasonable time; or

deleted text begin (2) deleted text end new text begin (3) new text end on finding that the existing township form of government is not adequate to
protect the public health, safety, and welfare; or

deleted text begin (3) deleted text end new text begin (4) new text end on finding that annexation would be in the best interests of the subject area.

deleted text begin (c) The chief administrative law judge may deny the annexation if it conflicts with
any provision of the joint agreement.
deleted text end

deleted text begin (d) The chief administrative law judge may alter the boundaries of the proposed
annexation by increasing or decreasing the area so as to include that property within the
designated area which is in need of municipal services or will be in need of municipal
services.
deleted text end

deleted text begin (e) If the annexation is denied, no proceeding for the annexation of substantially the
same area may be initiated within two years from the date of the denial order unless the
new proceeding is initiated by a majority of the area's property owners and the petition is
supported by affected parties to the resolution.
deleted text end

deleted text begin (f) deleted text end new text begin (b) new text end In all cases, the chief administrative law judge shall set forth new text begin and explain new text end the
factors which are the basis for deleted text begin the decision deleted text end new text begin granting or not granting the order new text end .

Sec. 9.

Minnesota Statutes 2008, section 414.033, subdivision 2, is amended to read:

Subd. 2.

Conditions.

new text begin (a) new text end A municipal council may by ordinance declare land
annexed to the municipality and any such land is deemed to be urban or suburban in
character or about to become so if:

(1) the land is owned by the municipality;

(2) the land is completely surrounded by land within the municipal limits;

(3) the land abuts the municipality and the deleted text begin area to be annexed is 120 acres or less,
and the area to be annexed is not presently served by public wastewater facilities or
public wastewater facilities are not otherwise available, and the deleted text end municipality receives a
petition for annexation from deleted text begin all deleted text end new text begin a majority of new text end the property owners of the land deleted text begin . Except as
provided for by an orderly annexation agreement, this clause may not be used to annex
any property contiguous to any property previously annexed under this clause within the
preceding 12 months if the property is owned by the same owners and annexation would
cumulatively exceed 120 acres deleted text end ; or

(4) the land new text begin is platted or new text end has been approved deleted text begin after August 1, 1995, by a deleted text end new text begin for a new text end
preliminary plat or final plat for subdivision to provide residential lots that average deleted text begin 21,780 deleted text end new text begin
43,560 new text end square feet or less in area deleted text begin and the land is located within two miles of the municipal
limits deleted text end new text begin or for commercial, industrial, governmental, or institutional development new text end .

new text begin (b) A municipality also may annex by ordinance unincorporated territory that abuts
the municipality under the procedures in this paragraph.
new text end

new text begin (1) The municipality must adopt a resolution of consideration and file it with the
Office of Administrative Hearings, the clerk of the county where the property is located,
and the clerk of the affected township at least 90 days before the municipality may enact
an annexation ordinance. The resolution must include a statement of the municipality's
intent to annex under this paragraph and a legal description of the area to be annexed.
new text end

new text begin (2) After the adoption of the resolution of consideration the municipality must
update its comprehensive plan to include the area proposed for annexation and must
prepare a report detailing the urban characteristics of the area and a plan for the provision
of urban services. The report and service plan must include:
new text end

new text begin (i) a map showing the area proposed for annexation and its relation to current
municipal boundaries;
new text end

new text begin (ii) a description of the general physical land use pattern, current and proposed
land uses, current and proposed land use controls, service needs, projected growth,
environmental conditions, and current and future transportation needs within the proposed
annexation area;
new text end

new text begin (iii) plans for the provision of water and sewer services including a schedule of
when services would be extended to the annexation area;
new text end

new text begin (iv) a plan for the extension of public safety services such as police and fire
protection;
new text end

new text begin (v) a plan for the extension of other municipal services such as recreation, street
maintenance, and administration; and
new text end

new text begin (vi) an updated comprehensive plan that does not allow residential densities in the
annexation area that are less than what is already in effect for the existing residential
parts of the municipality.
new text end

new text begin (3) The updated comprehensive plan, report, and service plan must be completed at
least 30 days before a public hearing is held on the proposed annexation. Copies of the
plans must be sent to the Office of Administrative Hearings and the affected town, and
must also be made available at city hall for public inspection and copying.
new text end

new text begin (4) After the compilation of the report required under clause (2), the municipality
must fix a date for a public hearing on the question of annexation. The municipality
must publish notice in a newspaper of general circulation at least ten days before the
hearing. The municipality must also send a notice of the public hearing to the town clerk
of the affected township and to all property owners within and contiguous to the proposed
annexation area. Notice must be given to the town clerk of the affected township and the
property owners no later than 14 days before the public hearing.
new text end

new text begin (5) At the public hearing the municipality shall present its findings and
recommendations and hear public testimony on the question of annexation. All persons
appearing must have an opportunity to be heard at least once. The governing body of the
municipality also may accept written comments on the question of annexation at that time
and for ten days following the public hearing.
new text end

new text begin (6) After the public hearing and before enacting an annexation ordinance under this
paragraph, the governing body of the municipality must make the following findings:
new text end

new text begin (i) the proposed annexation area is contiguous to the municipality's boundaries;
new text end

new text begin (ii) at least 40 percent of the existing lots in the proposed annexation area are
developed or are proposed to be developed for residential, commercial, industrial,
governmental, or institutional uses and at least 40 percent of the lots within the proposed
annexation area have an average lot size of 20 acres or less; and
new text end

new text begin (iii) the municipality is capable of extending services in a manner consistent with the
municipality's service plan in a reasonable time.
new text end

new text begin (7) Upon making the findings required by clause (6), the municipality may enact the
annexation ordinance declaring the land to be annexed to the municipality.
new text end

Sec. 10.

Minnesota Statutes 2008, section 414.033, subdivision 12, is amended to read:

Subd. 12.

Property taxes.

When a municipality annexes land under subdivision
2, new text begin paragraph (a), new text end clause (2), (3), or (4), new text begin or paragraph (b), new text end property taxes payable on the
annexed land shall continue to be paid to the affected town or towns for the year in which
the annexation becomes effective. If the annexation becomes effective on or before
August 1 of a levy year, the municipality may levy on the annexed area beginning with
that same levy year. If the annexation becomes effective after August 1 of a levy year, the
town may continue to levy on the annexed area for that levy year, and the municipality
may not levy on the annexed area until the following levy year.

Sec. 11.

Minnesota Statutes 2008, section 414.0333, is amended to read:

414.0333 JOINT INFORMATIONAL MEETING.

There must be a joint informational meeting of the municipal council of the annexing
municipality and the town board of supervisors of the township containing the land
proposed to be annexed or included in annexation proceedings under section 414.031.
For an annexation under section 414.031, the joint informational meeting must be held
after the final mediation meeting or the final meeting held pursuant to section 414.01,
subdivision 16, if any, and before the hearing on the matter is held. If no mediation
meetings are held, the joint informational meeting must be held after the initiating
documents have been filed and before the hearing on the matter. The time, date, and
place of the public informational meeting must be determined jointly by the chair of the
town board of supervisors and the mayor of the annexing municipality. The chair of the
town board of supervisors and the mayor must serve as the cochairs for the informational
meeting. Notice of the time, date, place, and purpose of the informational meeting must be
posted by the town clerk in the township's designated place for posting notices, and by the
municipal clerk in the municipality's designated place for posting notices. In addition,
both the city and town shall publish, at their own expense, notice in their respective
official newspapers. If the city and town use the same official newspaper, a joint notice
may be published and the costs evenly divided. All notice required by this section must
be provided at least ten days before the date for the public informational meeting. At
the public informational meeting, all persons appearing must have an opportunity to be
heard, but the co-chairs may, by mutual agreement, establish the amount of time allowed
for each speaker. The municipal council, the town board of supervisors, and any resident
or affected property owner may be represented by counsel deleted text begin and may place into the record
of the informational meeting documents, expert opinions, or other materials supporting
their positions on issues raised by the proposed annexation proceeding deleted text end . The clerk of the
township must record minutes of the proceedings of the informational meeting and the
municipal clerk must make an audio recording of the informational meeting. The township
must provide the chief administrative law judge and the municipality with a copy of the
printed minutes and the municipality must provide the chief administrative law judge and
the township with a copy of the audio recording. deleted text begin The record of the informational meeting
for a proceeding under section 414.031 is admissible in any proceeding under this chapter
and shall be taken into consideration by the chief administrative law judge or the chief
administrative law judge's designee.
deleted text end

Sec. 12.

Minnesota Statutes 2008, section 414.036, is amended to read:

414.036 deleted text begin CITY REIMBURSEMENT deleted text end new text begin LIMITATION ON PAYMENTS new text end TO
TOWN TO ANNEX TAXABLE PROPERTY.

new text begin Subdivision 1. new text end

new text begin Orderly annexation. new text end

Unless otherwise agreed to by the annexing
municipality and the affected town, when an order or other approval under deleted text begin this chapter deleted text end new text begin
section 414.0325 new text end annexes part of a town to a municipality, the order or other approval
must provide a reimbursement from the municipality to the town for all or part of the
taxable property annexed new text begin at the town tax rate at the time of annexation new text end as part of the
order. The reimbursement shall be completed in substantially equal payments over not
less than two nor more than eight years from the time of annexation. The municipality
must reimburse the township for all special assessments assigned by the township to the
annexed property new text begin that are received by the municipality new text end , and any portion of debt incurred
by the town prior to the annexation and attributable to the property to be annexed but
for which no special assessments are outstanding, new text begin provided the town makes a written
request and includes supporting documentation to the municipality within 60 days of the
order. Reimbursement for debt attributable to the annexed property must either be paid
by the municipality new text end in substantially equal payments over a period of not less than two or
no more than eight years new text begin or upon the same terms as the debt was incurred by the town.
Reimbursement for special assessments must be paid to the town within 30 days of receipt
of assessment payments by the municipality from the county or property owner new text end .

new text begin Subd. 2. new text end

new text begin Annexation by ordinance. new text end

new text begin When a municipality adopts an ordinance
under section 414.033 annexing part of a town to a municipality, the ordinance must
provide a reimbursement from the municipality to the town for the loss of taxes from the
property annexed for the period and in accordance with the following schedule:
new text end

new text begin (1) in the first levy year following the year when the annexing municipality could
first levy on the annexed area, the municipality must make a cash payment to the affected
town in an amount equal to 90 percent of the property taxes distributed to the town
in regard to the annexed area in the last year the property taxes from the annexed area
were payable to the town;
new text end

new text begin (2) in the second year, an amount equal to 80 percent;
new text end

new text begin (3) in the third year, an amount equal to 60 percent;
new text end

new text begin (4) in the fourth year, an amount equal to 40 percent; and
new text end

new text begin (5) in the fifth and final year, an amount equal to 20 percent.
new text end

new text begin Subd. 3. new text end

new text begin Exclusive. new text end

new text begin The reimbursements authorized in this section are the only
payments or consideration that can be made by a municipality to a town under this chapter.
new text end

Sec. 13.

new text begin [414.037] COMPETING PETITIONS FOR ANNEXATION.
new text end

new text begin If two or more municipalities seek to annex all or a portion of the same
unincorporated area, the chief administrative law judge shall designate a time and place
for a hearing in accordance with sections 414.031 and 414.09. The hearing shall be
limited to a determination of which municipality can better serve all or a portion of the
area to be annexed.
new text end

Sec. 14.

Minnesota Statutes 2008, section 414.041, subdivision 3, is amended to read:

Subd. 3.

Commission's hearing and report.

(a) The consolidation commission
shall conduct hearings regarding the proposed consolidation.

(b) The hearings shall include, but are not limited to, the following subjects:

(1) the contents of any city charter for the proposed consolidated city or the form of
government of the proposed consolidated city;

(2) analysis of whether a ward system shall be included in the form of government
of the proposed consolidated city; and

(3) each factor considered by the chief administrative law judge under deleted text begin section
414.02, deleted text end subdivision deleted text begin 3 deleted text end new text begin 5 new text end .

(c) Based on these factors and upon other matters which come before the
consolidation commission, the commission shall issue a report to the chief administrative
law judge with findings and recommendations within two years from the date of the chief
administrative law judge's initial appointment of the commission.

Sec. 15.

Minnesota Statutes 2008, section 414.041, subdivision 5, is amended to read:

Subd. 5.

Relevant factors, order.

(a) In arriving at a decision, the chief
administrative law judge shall consider the new text begin following new text end factors deleted text begin in section 414.02, subdivision
3. deleted text end new text begin : new text end

new text begin (1) present population and number of households, past population, and projected
population growth for the subject area;
new text end

new text begin (2) quantity of land within the subject area; the natural terrain including recognizable
physical features, general topography, major watersheds, soil conditions, and such natural
features as rivers, lakes, and major bluffs;
new text end

new text begin (3) present pattern of physical development, planning, and intended land uses in the
subject area, including residential, industrial, commercial, agricultural, and institutional
land uses, and the impact of the proposed action on those uses;
new text end

new text begin (4) the present transportation network and potential transportation issues, including
proposed highway development;
new text end

new text begin (5) land use controls and planning presently being utilized in the subject area,
including comprehensive plans, policies of the Metropolitan Council; and whether there
are inconsistencies between proposed development and existing land use controls;
new text end

new text begin (6) existing levels of governmental services being provided to the subject area,
including water and sewer service, fire rating and protection, law enforcement, street
improvements and maintenance, administrative services, and recreational facilities, and
the impact of the proposed action on the delivery of the services;
new text end

new text begin (7) existing or potential environmental problems and whether the proposed action is
likely to improve or resolve these problems;
new text end

new text begin (8) fiscal impact on the subject area and adjacent units of local government,
including present bonded indebtedness; local tax rates of the county, school district, and
other governmental units including, where applicable, the net tax capacity of platted and
unplatted lands and the division of homestead and nonhomestead property; and other
tax and governmental aid issues;
new text end

new text begin (9) relationship and effect of the proposed action on affected and adjacent school
districts and communities;
new text end

new text begin (10) whether delivery of services to the subject area can be adequately and
economically delivered by the existing government;
new text end

new text begin (11) analysis of whether necessary governmental services can best be provided
through the proposed action or another type of boundary adjustment; and
new text end

new text begin (12) degree of contiguity of the boundaries of the subject area and adjacent units of
local government.
new text end

(b) The chief administrative law judge shall consider and may accept, amend, return
to the commission for amendment or further study, or reject the commission's findings and
recommendations based upon the chief administrative law judge's written determination
of what is in the best interests of the affected municipalities.

(c) The chief administrative law judge shall order the consolidation on finding that
consolidation will be for the best interests of the municipalities. In all cases, the chief
administrative law judge shall set forth the factors which are the basis for the decision.

(d) If the chief administrative law judge orders consolidation, the order shall provide
for election of new municipal officers in accordance with section 414.09.

(e) If the most populous of the included municipalities is a statutory city, the new
municipality shall be a statutory city and the plan of government shall be Optional Plan A,
provided that an alternate plan may be adopted pursuant to section 412.551, at any time. If
the most populous of the included municipalities is a home rule charter city or organized
under a statute other than chapter 412, the new municipality shall be governed by its home
rule charter or the statutory form under which it is governed except that any ward system
for the election of council members shall be inoperable.

(f) If the commission's findings and recommendations include a proposed home rule
charter for the new municipality, the order may combine the issue of the adoption of the
charter and the vote on approval of the order for consolidation into one question on the
ballot, and shall submit it in a special or general election as provided in section 410.10.

(g) The ordinances of all of the included municipalities shall continue in effect within
their former boundaries until repealed by the governing body of the new municipality.

(h) Notwithstanding any other provision of law to the contrary, the order may
establish a ward system in the new municipality, in which event the order shall establish
not less than three nor more than seven wards, each of which shall elect one council
member. When more than two years have elapsed after consolidation, the governing body
may, by a four-fifths vote, abolish the ward system.

(i) The new municipality shall assume the name of the most populous municipality
unless previous to the election another name is chosen by joint resolution of a majority of
the included municipalities or by the consolidation commission.

(j) The number of license privileges existing in the included municipalities prior
to consolidation and pursuant to state law shall not be diminished as a result of the
consolidation.

(k) If the consolidation is denied or defeated in a referendum, no proceeding for the
consolidation of the same municipalities may be initiated within two years from the date
of the order unless authorized by the chief administrative law judge.

Sec. 16.

Minnesota Statutes 2008, section 414.061, subdivision 4, is amended to read:

Subd. 4.

Chief administrative law judge's initiative.

The chief administrative
law judge (1) may initiate proceedings for the concurrent detachment and annexation
of portions of one municipality completely surrounded by another municipality, or (2)
may act upon the petition of all of the owners of property in the completely surrounded
area. In such cases the chief administrative law judge shall conduct hearings and issue
an order pursuant to section 414.09. In arriving at a decision, the chief administrative
law judge shall consider the factors in section deleted text begin 414.02 deleted text end new text begin 414.041 new text end , subdivision deleted text begin 3 deleted text end new text begin 5 new text end . The
chief administrative law judge shall order the proposed action on finding that it will be
for the best interests of the municipalities and the property owners. In all cases, the chief
administrative law judge shall set forth the factors which are the basis for the decision.

Sec. 17.

Minnesota Statutes 2008, section 414.061, subdivision 5, is amended to read:

Subd. 5.

Property owners may initiate.

Property owners may initiate proceedings
for the concurrent detachment of their property from one municipality and its annexation
to an adjacent municipality by a petition signed by all of them that they submit to the chief
administrative law judge accompanied by a resolution of the city council of each of the
affected municipalities. The chief administrative law judge shall conduct hearings and
issue an order pursuant to section 414.09. In arriving at a decision, the chief administrative
law judge shall consider the factors in section deleted text begin 414.02 deleted text end new text begin 414.041 new text end , subdivision deleted text begin 3 deleted text end new text begin 5 new text end . The
chief administrative law judge shall order the proposed action on finding that it will be
for the best interests of the municipalities and the property owner. In all cases, the chief
administrative law judge shall set forth the factors which are the basis for the decision.

Sec. 18.

Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read:

Subdivision 1.

Authority for zoning.

For the purpose of promoting the public
health, safety, morals, and general welfare, a municipality may by ordinance regulate
on the earth's surface, in the air space above the surface, and in subsurface areas, the
location, height, width, bulk, type of foundation, number of stories, size of buildings
and other structures, the percentage of lot which may be occupied, the size of yards and
other open spaces, the density and distribution of population, the uses of buildings and
structures for trade, industry, residence, recreation, public activities, or other purposes,
and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil
conservation, water supply conservation, conservation of shorelands, as defined in
sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems as
defined in section 216C.06, flood control or other purposes, and may establish standards
and procedures regulating such uses. To accomplish these purposes, official controls may
include provision for purchase of development rights by the governing body in the form of
conservation easements under chapter 84C in areas where the governing body considers
preservation desirable and the transfer of development rights from those areas to areas the
governing body considers more appropriate for development. No regulation may prohibit
earth sheltered construction as defined in section 216C.06, subdivision 14, relocated
residential buildings, or manufactured homes built in conformance with sections 327.31
to 327.35 that comply with all other zoning ordinances promulgated pursuant to this
section. The regulations may divide the surface, above surface, and subsurface areas of the
municipality into districts or zones of suitable numbers, shape, and area. The regulations
shall be uniform for each class or kind of buildings, structures, or land and for each class
or kind of use throughout such district, but the regulations in one district may differ from
those in other districts. The ordinance embodying these regulations shall be known as the
zoning ordinance and shall consist of text and maps. A city new text begin that provides water and sewer
services to a majority of its households new text end may by ordinance extend the application of its
zoning regulations to unincorporated territory located within two miles of its limits in any
direction deleted text begin , but not in a county or town which has adopted zoning deleted text end new text begin and the city's new text end regulations new text begin
supersede any existing regulations in the unincorporated area to which the city's
regulations are extended new text end ; provided that where two or more noncontiguous deleted text begin municipalities deleted text end new text begin
cities new text end have boundaries less than four miles apart, each is authorized to control the zoning
of land on its side of a line equidistant between the two noncontiguous deleted text begin municipalities deleted text end new text begin
cities new text end unless deleted text begin a town or county in the affected area has adopted zoning regulations deleted text end new text begin the cities
otherwise agree new text end . Any city may thereafter enforce such regulations in the area to the same
extent as if such property were situated within its corporate limits deleted text begin , until the county or town
board adopts a comprehensive zoning regulation which includes the area deleted text end .

Sec. 19.

Minnesota Statutes 2008, section 462.358, subdivision 1a, is amended to read:

Subd. 1a.

Authority.

To protect and promote the public health, safety, and general
welfare, to provide for the orderly, economic, and safe development of land, to preserve
agricultural lands, to promote the availability of housing affordable to persons and families
of all income levels, and to facilitate adequate provision for transportation, water, sewage,
storm drainage, schools, parks, playgrounds, and other public services and facilities, a
municipality may by ordinance adopt subdivision regulations establishing standards,
requirements, and procedures for the review and approval or disapproval of subdivisions.
The regulations may contain varied provisions respecting, and be made applicable only
to, certain classes or kinds of subdivisions. The regulations shall be uniform for each
class or kind of subdivision.

A deleted text begin municipality deleted text end new text begin city that provides water and sewer services to a majority of its
households new text end may by resolution extend the application of its subdivision regulations to
unincorporated territory located within two miles of its limits in any direction deleted text begin but not
in a town which has adopted subdivision deleted text end new text begin but the city's new text end regulations new text begin shall supersede any
existing regulations in the unincorporated area to which they are extended new text end ; provided that
where two or more noncontiguous deleted text begin municipalities deleted text end new text begin cities new text end have boundaries less than four
miles apart, each is authorized to control the subdivision of land equal distance from its
boundaries within this area new text begin unless the cities otherwise agree. Any city may thereafter
enforce such regulations in the area to the same extent as if the property were situated
within its corporate limits new text end .

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 414.02; 414.031, subdivision 1a; 414.0325,
subdivision 1a; 414.033, subdivisions 10 and 13; 414.08; 462.3535; 462.3585; and
572A.03, subdivision 3, new text end new text begin are repealed.
new text end