HF 4816

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/24/2022 03:27pm

A bill for an act
relating to local government; establishing, expanding, or enlarging special service
districts; allowing multiunit residential property to pay service charges; amending
Minnesota Statutes 2020, sections 428A.01, by adding subdivisions; 428A.02,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 428A.

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

Section 1.

Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Multiunit residential petitioners. new text end

new text begin "Multiunit residential petitioners" means a
group of owners, individuals, or business organizations that may be subject to service charges
on multiunit residential property due to the election made by nonresidential petitioners under
section 428A.021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Multiunit residential property. new text end

new text begin "Multiunit residential property" means:
new text end

new text begin (1) property classified as class 4a under section 273.13, subdivision 25, paragraph (a);
new text end

new text begin (2) condominiums, as defined under section 515A.1-103, clause (7), that are classified
as class 1a under section 273.13, subdivision 22, paragraph (a); class 4b under section
273.13, subdivision 25, paragraph (b), clause (1); or class 4bb under section 273.13,
subdivision 25, paragraph (c), clause (1);
new text end

new text begin (3) condominium-type storage units classified as class 4bb under section 273.13,
subdivision 25, paragraph (c), clause (3); and
new text end

new text begin (4) a duplex or triplex classified as class 1a under section 273.13, subdivision 22,
paragraph (a); or classified as class 4b under section 273.13, subdivision 25, paragraph (b),
clause (1).
new text end

new text begin Multiunit residential property does not include any unit that is an affordable housing unit.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Nonresidential property. new text end

new text begin "Nonresidential property" means property that is
classified under section 273.13 and used for commercial, industrial, or public utility purposes,
or is zoned for vacant land or designated on a land use plan for commercial or industrial
use.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end

Sec. 4.

Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Nonresidential owners. new text end

new text begin "Nonresidential owners" means the owners of 50
percent or more of the land area of property subject to service charges on nonresidential
property in a proposed or existing special service district and either the: (1) owners of 50
percent or more of the net tax capacity of property subject to a proposed or existing service
charge, based on net tax capacity; or (2) owners, individuals, and business organizations
subject to 50 percent or more of a proposed or existing service charge using a basis other
than net tax capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end

Sec. 5.

Minnesota Statutes 2020, section 428A.01, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Affordable housing unit. new text end

new text begin "Affordable housing unit" means a residential unit
affordable to households with incomes at or below 80 percent of area median income.
new text end

Sec. 6.

Minnesota Statutes 2020, section 428A.02, subdivision 1, is amended to read:

Subdivision 1.

Ordinance.

The governing body of a city may adopt an ordinance
establishing a special service district. new text begin Except as otherwise provided in section 428A.021,
new text end only new text begin nonresidential new text end property deleted text begin that is classified under section 273.13 and used for commercial,
industrial, or public utility purposes, or is vacant land zoned or designated on a land use
plan for commercial or industrial use and deleted text end located in the special service district deleted text begin , deleted text end may be
subject to the charges imposed by the city on the special service district. Other types of
property may be included within the boundaries of the special service district but are not
subject to the levies or charges imposed by the city on the special service district new text begin , unless an
election under section 428A.021 is made new text end . If 50 percent or more of the estimated market
value of a parcel of property is classified under section 273.13 as commercial, industrial,
or vacant land zoned or designated on a land use plan for commercial or industrial use, or
public utility for the current assessment year, then the entire taxable market value of the
property is subject to a service charge based on net tax capacity for purposes of sections
428A.01 to 428A.10. The ordinance shall describe with particularity the area within the city
to be included in the district and the special services to be furnished in the district. The
ordinance may not be adopted until after a public hearing has been held on the question.
Notice of the hearing shall include the time and place of hearing, a map showing the
boundaries of the proposed district, and a statement that all persons owning property in the
proposed district that would be subject to a service charge will be given opportunity to be
heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision,
the governing body shall send a copy of the ordinance to the commissioner of revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment or expansion of a
special service district after July 1, 2021.
new text end

Sec. 7.

new text begin [428A.021] ELECTION TO INCLUDE MULTIUNIT RESIDENTIAL
PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Multiunit residential property; new districts; election. new text end

new text begin Prior to filing
a petition with the city clerk under section 428A.08, the nonresidential owners may elect
to subject multiunit residential property to the charges imposed by the city on a special
service district. The election must be filed with the city clerk. If an election is made, for
purposes of section 428A.08, "property" includes multiunit residential property.
new text end

new text begin Subd. 2. new text end

new text begin Multiunit residential property; in-district expansion. new text end

new text begin The nonresidential
owners may elect to expand the district to subject multiunit residential property to the charges
for the district. The election must be filed with the city clerk. The city must provide for a
hearing and notice on the expansion as required in sections 428A.02 and 428A.03. Notice
must be served in the original district and must include the property proposed to be added
to the district. Multiunit residential property added to the district is subject to all service
charges imposed within the district after the property becomes a part of the district. On the
question of whether to expand a district to include multiunit residential property, the petition
requirement in section 428A.08 and the veto power in section 428A.09 apply to all owners,
individuals, and business organizations that would be subject to the charges for the district.
new text end

new text begin Subd. 3. new text end

new text begin Multiunit residential property; enlargement of boundaries. new text end

new text begin Prior to the
hearing and notice requirements in section 428A.04, a majority of the petitioners seeking
enlargement of a district under that section may elect to expand the proposed enlargement
to subject multiunit residential property to the charges imposed by the city on a special
service district. The election must be filed with the city clerk.
new text end

new text begin Subd. 4. new text end

new text begin Common interest communities. new text end

new text begin A unit in a common interest community, as
defined under section 515B.1-103, clause (10), may only be included in a district under this
section if the district will provide services not provided by the unit owner's association, as
defined in section 515B.1-103, clause (4).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the establishment, expansion, or
enlargement of a special service district after July 1, 2021.
new text end