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HF 1402

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/20/2023 03:48pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to local government; authorizing municipalities to charge a street impact
fee; amending Minnesota Statutes 2022, section 462.358, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2022, section 462.358, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin Street impact fee. new text end

new text begin (a) In addition to all other existing authority of a
municipality, a municipality may impose a fee as set by ordinance on an applicant based
on the net buildable acreage of the subdivision, the subdivision's impact on the municipality's
transportation system, or the municipality's transportation plan.
new text end

new text begin (b) The municipality must place any cash payments received in a special fund which
may be used only for costs related to the municipality's approved transportation plan,
including the acquisition and construction, maintenance, or improvement of streets, roads,
intersections, and related transportation infrastructure.
new text end

new text begin (c) In addition to any other authority, the municipality may deny the approval of a
subdivision based solely on an inadequate transportation system within the municipality.
new text end

new text begin (d) Previously subdivided property, from which the municipality has received a street
impact fee, that is resubdivided with the same number of lots is exempt from street impact
fee requirements. If, as a result of resubdividing the property, the number of lots is increased,
the street impact fee applies only to the net increase of lots.
new text end

Sec. 2.

Minnesota Statutes 2022, section 462.358, is amended by adding a subdivision to
read:


new text begin Subd. 13. new text end

new text begin Street impact fee nexus. new text end

new text begin (a) There must be an essential nexus between the
fee imposed under subdivision 12 and the municipal purpose for the fee. The fee must bear
a rough proportionality to the need created by the proposed subdivision or development.
new text end

new text begin (b) If a municipality is given written notice of a dispute over a proposed fee before the
municipality's final decision on an application, a municipality must not condition the approval
of any proposed subdivision or development on an agreement to waive the right to challenge
the validity of a fee.
new text end

new text begin (c) An application may proceed as if the fee had been paid, pending a decision on the
appeal of a dispute over a proposed fee, if: (1) the person aggrieved by the fee puts the
municipality on written notice of a dispute over a proposed fee; (2) prior to the municipality's
final decision on the application, the fee is deposited in escrow; and (3) the person aggrieved
by the fee appeals under section 462.361 within 60 days of the approval of the application.
If an appeal is not filed by the deadline or the person aggrieved by the fee does not prevail
on the appeal, the funds paid into escrow must be transferred to the municipality.
new text end