1.1 	A bill for an act
1.2 	relating to local government; prohibiting a town from assessing certain fees in an 
1.3 	annexation proceeding;amending Minnesota Statutes 2004, sections 414.033, by 
1.4 	adding a subdivision; 414.036.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 414.033, is amended by adding a 
1.7 	subdivision to read:
1.8 		Subd. 14.Prohibition on fees. Except as otherwise provided in subdivision 12, 
1.9 	when a municipality annexes land under subdivision 2, clause (2), (3), or (4), the affected 
1.10 	town or towns may not require the payment of a fee as a condition of the annexation.

1.11 	Sec. 2. Minnesota Statutes 2004, section 414.036, is amended to read:
1.12 	414.036 CITY REIMBURSEMENT TO TOWN TO ANNEX TAXABLE 
1.13 	PROPERTY.
1.14 	When an order under section  414.0325 annexes part of a town to a municipality, 
1.15 	the orderly annexation agreement between the town and municipality may provide a 
1.16 	reimbursement from the municipality to the town for all or part of the taxable property 
1.17 	annexed as part of the order. The reimbursement shall be completed in substantially equal 
1.18 	payments over not less than two nor more than six years from the time of annexation. A 
1.19 	township may not require the payment of an additional fee as a condition of the annexation.