1.1 	A bill for an act
1.2 	relating to local government; creating a contested annexation account for 
1.3 	reimbursement of township attorney fees incurred in a contested annexation; 
1.4 	appropriating money;proposing coding for new law in Minnesota Statutes, chapter 
1.5 	414.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [414.13] CONTESTED ANNEXATION ACCOUNT ESTABLISHED.
1.8 	(a) The contested annexation account is created as an account in the special revenue 
1.9 	fund for reimbursement to townships for attorney fees incurred due to an annexation 
1.10 	proceeding under section 414.031. Attorney fees incurred by a township due to an orderly 
1.11 	annexation agreement, under section 414.0325, do not qualify for reimbursement from the 
1.12 	contested annexation account.
1.13 	(b) In addition to an appropriation of money to the account by law, the account under 
1.14 	this section shall be funded with any award for attorney fees received by a township that 
1.15 	prevails in a contested annexation. Within 30 days of receipt of the funds from an award of 
1.16 	attorney fees, a township shall submit the funds to the commissioner of management and 
1.17 	budget for deposit in the special revenue account for transfer to the contested annexation 
1.18 	account.
1.19 	(c) Money in the account is appropriated to the Office of Administrative Hearings for 
1.20 	purposes of this section.

1.21 	EFFECTIVE DATE. This section is effective July 1, 2022.

2.1 	Sec. 2. APPROPRIATION; CONTESTED CASE ANNEXATION ACCOUNT.
 2.2 	$5,000,000 in fiscal year 2023 is appropriated from the general fund to the commissioner 
2.3 	of management and budget for transfer to the contested annexation account established in 
2.4 	Minnesota Statutes, section 414.13.

2.5 	EFFECTIVE DATE. This section is effective July 1, 2022.