as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to statutes; conforming the statutes to 1.3 reflect the transfer of authority from the municipal 1.4 board to the office of strategic and long-range 1.5 planning; explicitly authorizing delegation by the 1.6 director; amending Minnesota Statutes 2000, sections 1.7 414.01; 414.011, subdivision 7, and by adding a 1.8 subdivision; 414.012; 414.02; 414.031; 414.0325; 1.9 414.033, subdivisions 3, 5, 6, 7, and 10; 414.0335; 1.10 414.035; 414.036; 414.041; 414.051; 414.06; 414.061; 1.11 414.063; 414.067, subdivisions 1 and 3; 414.07; 1.12 414.08; 414.09; 414.12, subdivisions 1 and 2; 1.13 repealing Minnesota Statutes 2000, sections 414.01, 1.14 subdivisions 2 and 6a; 414.011, subdivision 8; and 1.15 414.11. 1.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.17 Section 1. Minnesota Statutes 2000, section 414.01, is 1.18 amended to read: 1.19 414.01 [CREATION; ENABLING PROVISIONS.] 1.20 Subdivision 1. [PURPOSE.]The Minnesota municipal board is1.21hereby created toAmong the duties of the director of the office 1.22 of strategic and long-range planning is the duty to conduct 1.23 proceedings, make determinations, and issue orders for the 1.24 creation of a municipality, the combination of two or more 1.25 governmental units, or the alteration of a municipal boundary. 1.26 The legislature finds that: (1) sound urban development 1.27 and preservation of agricultural land and open spaces through 1.28 land use planning is essential to the continued economic growth 1.29 of this state; (2) municipal government most efficiently 1.30 provides governmental services in areas intensively developed 2.1 for residential, commercial, industrial, and governmental 2.2 purposes; and township government most efficiently provides 2.3 governmental services in areas used or developed for 2.4 agricultural, open space, and rural residential purposes; (3) 2.5 the public interest requires that municipalities be formed when 2.6 there exists or will likely exist the necessary resources to 2.7 provide for their economical and efficient operation; (4) 2.8 annexation to existing municipalities of unincorporated areas 2.9 unable to supply municipal services should be facilitated; and, 2.10 (5) the consolidation of municipalities should be encouraged. 2.11 TheMinnesota municipal board is empowered todirector may 2.12 promote and regulate development of municipalities to provide 2.13 for the extension of municipal government to areas which are 2.14 developed or are in the process of being developed for intensive 2.15 use for residential, commercial, industrial, institutional, and 2.16 governmental purposes or are needed for such purposes; and to 2.17 protect the stability of unincorporated areas which are used or 2.18 developed for agricultural, open space, and rural residential 2.19 purposes and are not presently needed for more intensive uses; 2.20 and to protect the integrity of land use planning in 2.21 municipalities and unincorporated areas so that the public 2.22 interest in efficient local government will be properly 2.23 recognized and served. 2.24Subd. 2. [MEMBERS, QUALIFICATIONS, MEETINGS.] The board2.25shall be composed of three members appointed by the governor, at2.26least one of whom shall be learned in the law, and at least one2.27of whom shall be a resident from outside of the metropolitan2.28area as defined in section 473.121, subdivision 2. The board2.29shall select from its members a chair who shall have the powers2.30and duties prescribed by the general law applicable to the heads2.31of departments and agencies of the state. All those appointed2.32must be residents of the state for at least five years before2.33the appointment. Each appointed member shall serve for six2.34years. The board shall meet once each month at a regular time2.35to be established by the chair. The removal of members and2.36filling of vacancies for members other than county commissioner3.1members on the board are as provided in section 15.0575.3.2In proceedings before the board for the incorporation of a3.3statutory city, consolidation of two or more municipalities, or3.4annexation of unincorporated land to a municipality, two county3.5commissioners of the board of the county in which all or a3.6majority of the affected land is located shall serve on the3.7board during such time as the board shall have under3.8consideration said matter. The executive director of the board3.9shall upon initiation of a proceeding for such incorporation,3.10consolidation, or annexation notify the county auditor of the3.11county in which the majority of the affected property is3.12situated of the need for the appointment of the two county3.13commissioners to the board. At the next succeeding meeting of3.14the county board the commissioners shall designate the two3.15appointed and shall thereupon immediately notify the Minnesota3.16municipal board executive director of their action. The county3.17commissioners shall represent districts which do not contain any3.18of the affected territory. If commissioners from the unaffected3.19districts are unavailable, commissioners from the affected3.20district may serve.3.21 Subd. 5. [MAJORITY ACTS, CHAIR'S AUTHORITYCONSOLIDATION.] 3.22The board shall transact business and conduct hearings by a3.23majority of its members except as otherwise provided for by3.24subdivision 12 but a smaller number may adjourn from time to3.25time.Thechairdirector may order the consolidation of 3.26 separate proceedings in the interest of economy and expedience. 3.27In those proceedings in which the board is composed of five3.28members, no order of the board shall be final unless approved by3.29three of the five members, and in all other proceedings unless3.30approved by two of the three members.3.31Subd. 6a. [PER DIEM; EXPENSES.] Each member of the3.32municipal board shall receive $50 per day when in attendance at3.33board meetings or hearings, or when otherwise engaged in the3.34performance of duties. The county commissioners shall be paid3.35$25 per day for each hearing or meeting attended. The county3.36auditors and commissioners shall be deemed to be performing4.1duties for the county without additional compensation when4.2serving as ex officio members of the board. Each member of the4.3board and the county commission members of the board shall be4.4reimbursed for actual expenses incurred in accordance with state4.5travel regulations.4.6 Subd. 7a. [EXECUTIVE DIRECTORDIRECTOR'S DESIGNEE.]The4.7Minnesota municipal board shall appoint an executive director,4.8not a member of the board, who shall be qualified as a result of4.9practical, professional, or educational experience and receive a4.10salary fixed by law. The director shall devote full time to the4.11duties of office. All correspondence and petitions shall be4.12addressed to the executive director who is charged with4.13conducting the administrative affairs of the board.A power or 4.14 duty of the director under this chapter may be delegated by the 4.15 director as provided in section 15.06, subdivision 6, clause 4.16 (1), for commissioners. 4.17 Subd. 8. [PLANNING, CONSULTANTS, HEARING FORMALITIES.] The 4.18board shall have authority todirector may contract with 4.19 regional, state, county, or local planning commissionsor toand 4.20 hire expert consultants to provide specialized information and 4.21 assistance. Anymember of the board conducting or participating4.22in any hearing, or its executive director, shall have the power4.23toperson conducting a proceeding under this chapter may 4.24 administer oaths and affirmations, to; issue subpoenas, to; 4.25 compel the attendance and testimony of witnesses, and the 4.26 production of papers, books, and documents; examine witnesses, 4.27 and receive and report evidence. 4.28 Subd. 10. [RULES.]In orderTo carry out the duties and 4.29 powers imposed upon theboard, it shall have the power to make4.30suchdirector under this chapter, the director may adopt the 4.31 rules,asthat are reasonably necessary, in accordance with the 4.32 procedure prescribed in the general laws relating to departments 4.33 and agencies of the state. 4.34 Subd. 11. [FEES.] Theboarddirector may prescribe a 4.35 schedule of filing fees for any petitions, resolutions or 4.36 ordinances filed pursuant to this chapter by an appropriate rule 5.1 promulgated in accordance with the procedure prescribed in the 5.2 general laws relating to departments and agencies of the state 5.3 for the issuance of administrative rules. 5.4 Subd. 12. [TRANSCRIPTS, EVIDENCE REPORTS.]In proceedings5.5pursuant to this chapter, the executive director or any board5.6member may administer oaths and affirmations to witnesses,5.7examine witnesses, and receive and report evidence. In any5.8proceeding in which the evidence is received by one board member5.9or by the executive director, the board member or executive5.10director shall make a report of the evidence to the board. When5.11all members of the board do not attend a hearing in a5.12proceeding,Any party may request theexecutivedirector to 5.13 cause a transcript of the hearing to be madeand distributed to5.14all board members. Any party requesting a copy of the 5.15 transcriptfor board membersis responsible for its costs. 5.16 Subd. 14. [POPULATION OF CHANGED TERRITORY.] Whena board5.17 an order or approval letter under this chapter enlarges or 5.18 diminishes the area of an existing municipality or town, 5.19 theboarddirector shall communicateitsthe order or approval 5.20 letter to the municipality and the state demographer. The 5.21 municipality shall prepare an estimate of population and of the 5.22 number of households for the annexed or detached area of the 5.23 municipality or town. The estimate shall be certified by the 5.24 state demographer. The estimate must estimate the population as 5.25 of the effective date of theboardorder or approval letter and 5.26 must be so dated. When a new municipality is created by an 5.27 orderof the boardunder this chapter, the municipality shall 5.28 request a separation census from the United States bureau of the 5.29 census and bear any costs incurred. 5.30 Subd. 15. [INCREASED COSTS, LEVY PERIOD.] Whena boardan 5.31 order under this chapter enlarges an existing municipality or 5.32 creates a new municipality, theboardorder may indicatein its5.33orderthe estimated increased costs to the municipality as the 5.34 result of the boundary adjustment, and the time period that the 5.35 municipality would be allowed a levy for these increased costs. 5.36 Subd. 16. [COMPELLED MEETINGS; REPORT.] In any proceeding 6.1before the boardunder this chapter, theboarddirector or 6.2 conductor of the proceeding may at any time in the process 6.3 require representatives from the involved city, town, county, 6.4 political subdivision, or other governmental entity to meet 6.5 together to discuss resolution of issues raised bysaidthe 6.6 petition or orderwhichthat confers jurisdiction on theboard6.7 director and other issues of mutual concern. Theboarddirector 6.8 or conductor of the proceeding may require that the parties meet 6.9 at least three times during a 60-day period. The parties shall 6.10 designate a person to report to theboarddirector or conductor 6.11 of the proceeding on the results of the meetings immediately 6.12 after the last meeting. 6.13 Subd. 17. [DATA FROM STATE AGENCIES.] Theboarddirector 6.14 may request information from any state department or agency in 6.15 order to assistit to carry out itsin carrying out the 6.16 director's duties under this chapter. The department or agency 6.17 shall promptly furnish the requested informationto the board. 6.18 Sec. 2. Minnesota Statutes 2000, section 414.011, 6.19 subdivision 7, is amended to read: 6.20 Subd. 7. [BOUNDARY ADJUSTMENT.] "Boundary adjustment" 6.21 means any proceedingby the municipal boardauthorized by this 6.22 chapter. 6.23 Sec. 3. Minnesota Statutes 2000, section 414.011, is 6.24 amended by adding a subdivision to read: 6.25 Subd. 11. [DIRECTOR.] "Director" means the director of the 6.26 office of strategic and long-range planning. 6.27 Sec. 4. Minnesota Statutes 2000, section 414.012, is 6.28 amended to read: 6.29 414.012 [MAPS.] 6.30 Subdivision 1. [CORPORATE BOUNDARY MAP.] A municipality 6.31 initiating any boundary adjustment authorized by this chapter 6.32 shall file with themunicipal boarddirector a corporate 6.33 boundary map. Any proposed boundary adjustment shall be 6.34 delineated on a copy of the corporate boundary map. 6.35 Subd. 2. [PLAT MAPS.] Any party initiating a boundary 6.36 adjustment, which includes platted land, shall file with the 7.1municipal boarddirector maps which are necessary to support and 7.2 identify the land description. The maps shall include copies of 7.3 plats. 7.4 Sec. 5. Minnesota Statutes 2000, section 414.02, is 7.5 amended to read: 7.6 414.02 [MUNICIPAL INCORPORATION.] 7.7 Subdivision 1. [INITIATING THE PROCEEDINGS.] This section 7.8 provides the exclusive method of incorporating a municipality in 7.9 Minnesota. Proceedings for incorporation of a municipality may 7.10 be initiated by petition of 100 or more property owners or by 7.11 resolution of the town board within an area which is not 7.12 included within the limits of any incorporated municipality and 7.13 which area includes land that has been platted into lots and 7.14 blocks in the manner provided by law. The petition or 7.15 resolution shall be submitted to theexecutivedirector and 7.16 shall state the proposed name of the municipality, the names of 7.17 all parties entitled to mailed notice under section 414.09, the 7.18 reason for requesting incorporation, and shall include a 7.19 proposed corporate boundary map. 7.20 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a petition 7.21 or resolution made pursuant to subdivision 1, theexecutive7.22 directorof the boardshall designate a time and place for a 7.23 hearing in accordance with section 414.09. 7.24 Subd. 3. [BOARDRELEVANT FACTORS, ORDER.] (a) In arriving 7.25 atitsa decision, theboarddirector shall consider the 7.26 following factors: 7.27(a)(1) present population and number of households, past 7.28 population and projected population growth for the subject area; 7.29(b)(2) quantity of land within the subject area; the 7.30 natural terrain including recognizable physical features, 7.31 general topography, major watersheds, soil conditions and such 7.32 natural features as rivers, lakes and major bluffs; 7.33(c)(3) present pattern of physical development, planning, 7.34 and intended land uses in the subject area including 7.35 residential, industrial, commercial, agricultural, and 7.36 institutional land uses and the impact of the proposed action on 8.1 those uses; 8.2(d)(4) the present transportation network and potential 8.3 transportation issues, including proposed highway development; 8.4(e)(5) land use controls and planning presently being 8.5 utilized in the subject area, including comprehensive plans, 8.6 policies of the metropolitan council; and whether there are 8.7 inconsistencies between proposed development and existing land 8.8 use controls; 8.9(f)(6) existing levels of governmental services being 8.10 provided to the subject area, including water and sewer service, 8.11 fire rating and protection, law enforcement, street improvements 8.12 and maintenance, administrative services, and recreational 8.13 facilities and the impact of the proposed action on the delivery 8.14 of the services; 8.15(g)(7) existing or potential environmental problems and 8.16 whether the proposed action is likely to improve or resolve 8.17 these problems; 8.18(h)(8) fiscal impact on the subject area and adjacent 8.19 units of local government, including present bonded 8.20 indebtedness; local tax rates of the county, school district, 8.21 and other governmental units, including, where applicable, the 8.22 net tax capacity of platted and unplatted lands and the division 8.23 of homestead and nonhomestead property; and other tax and 8.24 governmental aid issues; 8.25(i)(9) relationship and effect of the proposed action on 8.26 affected and adjacent school districts and communities; 8.27(j)(10) whether delivery of services to the subject area 8.28 can be adequately and economically delivered by the existing 8.29 government; 8.30(k)(11) analysis of whether necessary governmental 8.31 services can best be provided through the proposed action or 8.32 another type of boundary adjustment; 8.33(l)(12) degree of contiguity of the boundaries of the 8.34 subject area and adjacent units of local government; and 8.35(m)(13) analysis of the applicability of the state 8.36 building code. 9.1 (b) Based upon these factors, theboarddirector may order 9.2 the incorporationif it findson finding that(a): 9.3 (1) the property to be incorporated is now, or is about to 9.4 become, urban or suburban in character,; or(b)9.5 (2) that the existing township form of government is not 9.6 adequate to protect the public health, safety, and welfare,; or 9.7(c)9.8 (3) the proposed incorporation would be in the best 9.9 interests of the area under consideration. 9.10 (c) Theboarddirector may deny the incorporation if the 9.11 area, or a part thereof, would be better served by annexation to 9.12 an adjacent municipality. 9.13 (d) Theboarddirector may alter the boundaries of the 9.14 proposed incorporation by increasing or decreasing the area to 9.15 be incorporated so as to include only that property which is 9.16 now, or is about to become, urban or suburban in character, or 9.17 may exclude property that may be better served by another unit 9.18 of government. Theboarddirector may also alter the boundaries 9.19 of the proposed incorporation so as to follow visible, clearly 9.20 recognizable physical features for municipal boundaries. 9.21 (e) In all cases, theboarddirector shall set forth the 9.22 factors which are the basis for the decision. 9.23 (f) Notwithstanding any other provision of law to the 9.24 contrary relating to the number of wards which may be 9.25 established, theboarddirector may provide for election of 9.26 council members by wards, not less than three nor more than 9.27 seven in number, whose limits are prescribed in theboard9.28 director's order upon a finding that area representation is 9.29 required to accord proper representation in the proposed 9.30 incorporated area because of uneven population density in 9.31 different parts thereof or the existence of agricultural lands 9.32 therein which are in the path of suburban development, but after 9.33 four years from the effective date of an incorporation the 9.34 council of the municipality may by resolution adopted by a 9.35 four-fifths vote abolish the ward system and provide for the 9.36 election of all council members at large as in other 10.1 municipalities. 10.2 (g) Theboard'sdirector's order for incorporation shall 10.3 provide for the election of municipal officers in accordance 10.4 with section 414.09. The plan of government shall be "Optional 10.5 Plan A", provided that an alternate plan may be adopted pursuant 10.6 to section 412.551, at any time. 10.7 (h) The ordinances of the township in which the new 10.8 municipality is located shall continue in effect until repealed 10.9 by the governing body of the new municipality. 10.10 Subd. 4. [EFFECTIVE DATE.] The incorporation shall be 10.11 effective upon the election and qualification of new municipal 10.12 officers or on such later date as is fixed by theboard in its10.13 director's order. 10.14 Sec. 6. Minnesota Statutes 2000, section 414.031, is 10.15 amended to read: 10.16 414.031 [ANNEXATION OF UNINCORPORATED PROPERTY BYBOARD10.17 DIRECTOR'S ORDER.] 10.18 Subdivision 1. [INITIATING THE PROCEEDING.] (a) A 10.19 proceeding for the annexation of unincorporated property 10.20 abutting a municipality may be initiated by submitting to 10.21 theexecutivedirector and the affected township one of the 10.22 following: 10.23(a)(1) a resolution of the annexing municipality; 10.24(b)(2) a resolution of the township containing the area 10.25 proposed for annexation; 10.26(c)(3) a petition of 20 percent of the property owners or 10.27 100 property owners, whichever is less, in the area to be 10.28 annexed; 10.29(d)(4) a resolution of the municipal council together with 10.30 a resolution of the township board stating their desire to have 10.31 the entire township annexed to the municipality. 10.32 (b) The petition, or resolution shall set forth the 10.33 boundaries of the territory proposed for annexation, the names 10.34 of all parties entitled to notice under section 414.09, and the 10.35 reasons for requesting annexation. 10.36 (c) If the proceeding is initiated by a petition of 11.1 property owners, the petition shall be accompanied by a 11.2 resolution of the annexing municipality supporting the petition. 11.3 Subd. 3. [HEARING TIME, PLACE.] Upon receipt of a petition 11.4 or resolution initiating an annexation theexecutivedirector 11.5 shall designate a time and a place for a hearing in accordance 11.6 with section 414.09. 11.7 Subd. 4. [BOARDRELEVANT FACTORS, ORDER.] (a) In arriving 11.8 atitsa decision, theboarddirector shall consider the 11.9 following factors: 11.10(a)(1) present population and number of households, past 11.11 population and projected population growth of the subject area 11.12 and adjacent units of local government; 11.13(b)(2) quantity of land within the subject area and 11.14 adjacent units of local government; and natural terrain 11.15 including recognizable physical features, general topography, 11.16 major watersheds, soil conditions and such natural features as 11.17 rivers, lakes and major bluffs; 11.18(c)(3) degree of contiguity of the boundaries between the 11.19 annexing municipality and the subject area; 11.20(d)(4) present pattern of physical development, planning, 11.21 and intended land uses in the subject area and the annexing 11.22 municipality including residential, industrial, commercial, 11.23 agricultural and institutional land uses and the impact of the 11.24 proposed action on those land uses; 11.25(e)(5) the present transportation network and potential 11.26 transportation issues, including proposed highway development; 11.27(f)(6) land use controls and planning presently being 11.28 utilized in the annexing municipality and the subject area, 11.29 including comprehensive plans for development in the area and 11.30 plans and policies of the metropolitan council, and whether 11.31 there are inconsistencies between proposed development and 11.32 existing land use controls and the reasons therefore; 11.33(g)(7) existing levels of governmental services being 11.34 provided in the annexing municipality and the subject area, 11.35 including water and sewer service, fire rating and protection, 11.36 law enforcement, street improvements and maintenance, 12.1 administrative services, and recreational facilities and the 12.2 impact of the proposed action on the delivery of said services; 12.3(h)(8) existing or potential environmental problems and 12.4 whether the proposed action is likely to improve or resolve 12.5 these problems; 12.6(i)(9) plans and programs by the annexing municipality for 12.7 providing needed governmental services to the subject area; 12.8(j)(10) an analysis of the fiscal impact on the annexing 12.9 municipality, the subject area, and adjacent units of local 12.10 government, including net tax capacity and the present bonded 12.11 indebtedness, and the local tax rates of the county, school 12.12 district, and township; 12.13(k)(11) relationship and effect of the proposed action on 12.14 affected and adjacent school districts and communities; 12.15(l)(12) adequacy of town government to deliver services to 12.16 the subject area; 12.17(m)(13) analysis of whether necessary governmental 12.18 services can best be provided through the proposed action or 12.19 another type of boundary adjustment; and 12.20(n)(14) if only a part of a township is annexed, the 12.21 ability of the remainder of the township to continue or the 12.22 feasibility of it being incorporated separately or being annexed 12.23 to another municipality. 12.24 (b) Based upon the factors, theboarddirector may order 12.25 the annexation(a) if it findson finding: 12.26 (1) that the subject area is now, or is about to become, 12.27 urban or suburban in character, or (b) if it finds; 12.28 (2) that municipal government in the area proposed for 12.29 annexation is required to protect the public health, safety, and 12.30 welfare,; or(c) if it finds12.31 (3) that the annexation would be in the best interest of 12.32 the subject area. 12.33 (c) If only a part of a township is to be annexed, the 12.34boarddirector shall consider whether the remainder of the 12.35 township can continue to carry on the functions of government 12.36 without undue hardship. 13.1 (d) Theboarddirector shall deny the annexationif it13.2findson finding that the increase in revenues for the annexing 13.3 municipality bears no reasonable relation to the monetary value 13.4 of benefits conferred upon the annexed area. 13.5 (e) Theboarddirector may deny the annexation(a) if it13.6appearson finding (1) that annexation of all or a part of the 13.7 property to an adjacent municipality would better serve the 13.8 interests of the residents of the property or(b) if(2) that 13.9 the remainder of the township would suffer undue hardship. 13.10 (f) Theboarddirector may alter the boundaries of the area 13.11 to be annexed by increasing or decreasing the area so as to 13.12 include only that property which is now or is about to become 13.13 urban or suburban in character or to add property of such 13.14 character abutting the area proposed for annexation in order to 13.15 preserve or improve the symmetry of the area, or to exclude 13.16 property that may better be served by another unit of government. 13.17 (g) Theboarddirector may also alter the boundaries of the 13.18 proposed annexation so as to follow visible, clearly 13.19 recognizable physical features. 13.20 (h) If theboarddirector determines that part of the area 13.21 would be better served by another municipality or township, 13.22 theboarddirector may initiate and approve annexationon its13.23own motionby conducting further hearings and issuing orders 13.24 pursuant to subdivisions 3 and 4. 13.25 (i) In all cases, theboarddirector shall set forth the 13.26 factors which are the basis for the decision. 13.27 Subd. 4a. [PROCEEDINGS INITIATED BY JOINT RESOLUTION.] (a) 13.28 If the proceeding has been initiated under subdivision 13.29 1, paragraph (a), clause(d)(4), any annexation order shall 13.30 include a provision for the election of new municipal officers 13.31 in accordance with section 414.09. 13.32 (b) The expanded municipality shall be governed by the home 13.33 rule charter or statutory form which governs the annexing 13.34 municipality, except that any ward system for the election of 13.35 council members shall be inoperable. 13.36 (c) The ordinances of both the annexing municipality and 14.1 the township shall continue in effect within the former 14.2 boundaries until repealed by the governing body of the new 14.3 municipality. 14.4 (d) Notwithstanding any other provision of law to the 14.5 contrary theboarddirector may provide for election of council 14.6 members by wards, not less than three nor more than seven in 14.7 number, whose limits are prescribed in theboarddirector's 14.8 order, upon a finding that area representation is required to 14.9 accord proper representation in the municipality because of 14.10 uneven population density in different parts thereof or the 14.11 existence of agricultural lands therein which are in the path of 14.12 suburban development; but after four years from the effective 14.13 date of an annexation the council of the municipality may by 14.14 resolution adopted by a four-fifths vote abolish the ward system 14.15 and provide for the election of all council members at large. 14.16 (e) Until the effective date of the annexation order, the 14.17 town board and other officers of the town shall continue to 14.18 exercise their powers and duties under the town laws in that 14.19 portion of the municipality that was formerly the town, and the 14.20 council and other officers of the annexing municipality shall 14.21 continue to exercise their powers and duties in that portion of 14.22 the expanded municipality that was formerly the municipality. 14.23 Thereafter the town board and the council of the annexing 14.24 municipality shall have no jurisdiction within the municipality, 14.25 and the new municipal council and other new officers shall act 14.26 in respect to any matters previously undertaken by the town 14.27 board of supervisors or municipal council within the limits of 14.28 the expanded municipality, including the making of any 14.29 improvement and the levying of any special assessments therefor 14.30 in the same manner and to the same effect as if such improvement 14.31 had been undertaken by the municipality. 14.32 (f) The new municipal council may continue or discontinue 14.33 any board that may have previously existed in the town or former 14.34 municipality. 14.35 Subd. 6. [EFFECTIVE DATE.] The annexation shall be 14.36 effective as of the date fixed in the annexation order or on 15.1sucha later dateas isfixed in the annexation order. A copy 15.2 of the annexation order must be delivered immediately by the 15.3executivedirectorof the Minnesota municipal boardto the 15.4 appropriate countyauditor orauditors. For the purposes of 15.5 taxation, if the annexation becomes effective on or before 15.6 August 1 of a levy year, the municipality may levy on the 15.7 annexed area beginning with that same levy year. If the 15.8 annexation becomes effective after August 1 of a levy year, the 15.9 town may continue to levy on the annexed area for that levy 15.10 year, and the municipality may not levy on the annexed area 15.11 until the following levy year. 15.12 Sec. 7. Minnesota Statutes 2000, section 414.0325, is 15.13 amended to read: 15.14 414.0325 [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 15.15 Subdivision 1. [INITIATING THE PROCEEDING.] (a) One or 15.16 more townships and one or more municipalities, by joint 15.17 resolution, may designate an unincorporated area as in need of 15.18 orderly annexation. 15.19 (b) The joint resolution will confer jurisdiction on 15.20 theboarddirector over annexations in the designated area and 15.21 over the various provisions in said agreement by submission of 15.22 said joint resolution to theexecutivedirector. 15.23 (c) The resolution shall include a description of the 15.24 designated area and the reasons for designation. 15.25 (d) Thereafter, an annexation of any part of the designated 15.26 area may be initiated by: 15.27 (1) submitting to theexecutivedirector a resolution of 15.28 any signatory to the joint resolution; or 15.29 (2) theboard of its own motiondirector. 15.30 (e) Whenever a state agency, other than the pollution 15.31 control agency, orders a municipality to extend a municipal 15.32 service to an area,such anthe orderwill conferconfers 15.33 jurisdiction on theMinnesota municipal boarddirector to 15.34 consider designation of the area for orderly annexation. 15.35 (f) If a joint resolution designates an area as in need of 15.36 orderly annexation and states that no alteration of its stated 16.1 boundaries is appropriate, theboarddirector may review and 16.2 comment, but may not alter the boundaries. 16.3 (g) If a joint resolution designates an area as in need of 16.4 orderly annexation, provides for the conditions for its 16.5 annexation, and states that no consideration by theboard16.6 director is necessary, theboarddirector may review and 16.7 comment, but shall, within 30 days, order the annexation in 16.8 accordance with the terms of the resolution. 16.9 Subd. 1a. [ELECTRIC UTILITY SERVICE NOTICE.] At least 60 16.10 days before a petition is filed under this section or section 16.11 414.033, the petitioner must notify the municipality that the 16.12 petitioner intends to file a petition for annexation. At least 16.13 30 days before a petition is filed for annexation, the 16.14 petitioner must be notified by the municipality that the cost of 16.15 electric utility service to the petitioner may change if the 16.16 land is annexed to the municipality. The notice must include an 16.17 estimate of the cost impact of any change in electric utility 16.18 services, including rate changes and assessments, resulting from 16.19 the annexation. 16.20 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a 16.21 resolution for annexation of a part of the designated area, the 16.22executivedirector shall set a time and place for a hearing in 16.23 accordance with section 414.09. 16.24 Subd. 3. [BOARDRELEVANT FACTORS, ORDER.] (a) In arriving 16.25 atitsa decision, theboarddirector shall consider the factors 16.26 in section 414.031, subdivision 4. 16.27 (b) Based upon factors in section 414.031, subdivision 4, 16.28 theboarddirector may order the annexation: 16.29(a)(1)if it findson finding that the subject area is now 16.30 or is about to become urban or suburban in character and that 16.31 the annexing municipality is capable of providing the services 16.32 required by the area within a reasonable time; or(b)16.33 (2)if it findson finding that the existing township form 16.34 of government is not adequate to protect the public health, 16.35 safety, and welfare; or(c)16.36 (3)if it findson finding that annexation would be in the 17.1 best interests of the subject area. 17.2 (c) Theboarddirector may deny the annexation if it 17.3 conflicts with any provision of the joint agreement. 17.4 (d) Theboarddirector may alter the boundaries of the 17.5 proposed annexation by increasing or decreasing the area so as 17.6 to include that property within the designated area which is in 17.7 need of municipal services or will be in need of municipal 17.8 services. 17.9 (e) If the annexation is denied, no proceeding for the 17.10 annexation of substantially the same area may be initiated 17.11 within two years from the date of theboard'sdenial order 17.12 unless the new proceeding is initiated by a majority of the 17.13 area's property owners and the petition is supported by affected 17.14 parties to the resolution. 17.15 (f) In all cases, theboarddirector shall set forth the 17.16 factors which are the basis for the decision. 17.17 Subd. 4. [EFFECTIVE DATE OF ANNEXATION.] Theboard's17.18 director's order shall be effective upon the issuance of the 17.19 order or at such later time as is providedby the boardinits17.20 the order. A copy of the annexation order must be delivered 17.21 immediately by theexecutivedirectorof the Minnesota municipal17.22boardto the appropriate countyauditor orauditors. For the 17.23 purposes of taxation, if the annexation becomes effective on or 17.24 before August 1 of a levy year, the municipality may levy on the 17.25 annexed area beginning with that same levy year. If the 17.26 annexation becomes effective after August 1 of a levy year, the 17.27 town may continue to levy on the annexed area for that levy 17.28 year, and the municipality may not levy on the annexed area 17.29 until the following levy year. 17.30 Subd. 5. [PLANNING INTHE AREA DESIGNATED FORORDERLY 17.31 ANNEXATION AREA.] (a) A joint resolution may provide for the 17.32 establishment of a board to exercise planning and land use 17.33 control authority within any area designated as an orderly 17.34 annexation area pursuant to this section, in the manner 17.35 prescribed byMinnesota Statutes 1976,section 471.59, 17.36 subdivisions 2 to 8, inclusive. 18.1(a)(b) A board established pursuant to a joint resolution 18.2 shall have all of the powers contained in sections 462.351 to 18.3 462.364, and shall have the authority to adopt and enforce the 18.4 Uniform Fire Code promulgated pursuant to section 299F.011. 18.5(b)(c) The joint resolution may provide that joint 18.6 planning and land use controls shall apply to any or all parts 18.7 of the area designated for orderly annexation as well as to any 18.8 adjacent unincorporated or incorporated area, provided that the 18.9 area to be included shall be described in the joint resolution. 18.10(c)(d) If the joint resolution does not provide for joint 18.11 planning and land use control, the following procedures shall 18.12 govern: 18.13 (1) if the county and townships agree to exclude the area 18.14 from their zoning and subdivision ordinances, the municipality 18.15 may extend its zoning and subdivision regulations to include the 18.16 entire orderly annexation area as provided in section 462.357, 18.17 subdivision 1, and section 462.358, subdivision 1.; or 18.18 (2) if the county and township do not agree to such 18.19 extraterritorial zoning and subdivision regulation by the 18.20 municipality, zoning and subdivision regulation within the 18.21 orderly annexation area shall be controlled by a three-member 18.22 committee with one member appointed from each of the municipal, 18.23 town, and county governing bodies. 18.24 (e)ThisThe committee under paragraph (d), clause (2), 18.25 shall: 18.26 (1) serve as the "governing body" and "board of appeals and 18.27 adjustments", for purposes of sections 462.357 and 462.358, 18.28 within the orderly annexation area.; and 18.29 (2)The committee shallhave all of the powers contained in 18.30 sections 462.351 to 462.364, andshall havethe authority to 18.31 adopt and enforce the Uniform Fire Code promulgated pursuant to 18.32 section 299F.011. 18.33 Sec. 8. Minnesota Statutes 2000, section 414.033, 18.34 subdivision 3, is amended to read: 18.35 Subd. 3. [PERIMETER, ACREAGE REQUIREMENTS.] If the 18.36 perimeter of the area to be annexed by a municipality is 60 19.1 percent or more bordered by the municipality and if the area to 19.2 be annexed is 40 acres or less, the municipality shall serve 19.3 notice of intent to annex upon the town board and themunicipal19.4boarddirector, unless the area is appropriate for annexation by 19.5 ordinance under subdivision 2, clause (3). The town board shall 19.6 have 90 days from the date of service to serve objections with 19.7 theboarddirector. If no objections are forthcoming within the 19.8 said 90 day period, such land may be annexed by ordinance. If 19.9 objections are filed with theboarddirector, theboarddirector 19.10 shall conduct hearings and issueitsan order as in the case of 19.11 annexations under section 414.031, subdivisions 3 and 4. 19.12 Sec. 9. Minnesota Statutes 2000, section 414.033, 19.13 subdivision 5, is amended to read: 19.14 Subd. 5. [PETITION, OBJECTIONS.] If the land is platted, 19.15 or, if unplatted, does not exceed 200 acres, a majority of the 19.16 property owners in number may petition the municipal council to 19.17 have such land included within the abutting municipality and, 19.18 within ten days thereafter, shall file copies of the petition 19.19 with theboarddirector, the town board, the county board and 19.20 the municipal council of any other municipality which borders 19.21 the land to be annexed. Within 90 days from the date of 19.22 service, the town board or the municipal council of such 19.23 abutting municipality may submit written objections to the 19.24 annexation to theboarddirector and the annexing municipality. 19.25 Upon receipt of such objections, theboarddirector shall 19.26 proceed to hold a hearing and issueitsan order in accordance 19.27 with section 414.031, subdivisions 3 and 4. If written 19.28 objections are not submitted within the time specified in this 19.29 section and if the municipal council determines that property 19.30 proposed for the annexation is now or is about to become urban 19.31 or suburban in character, it may by ordinance declare such land 19.32 annexed to the municipality. If the petition is not signed by 19.33 all the property owners of the land proposed to be annexed, the 19.34 ordinance shall not be enacted until the municipal council has 19.35 held a hearing on the proposed annexation after at least 30 19.36 days' mailed notice to all property owners within the area to be 20.1 annexed. 20.2 Sec. 10. Minnesota Statutes 2000, section 414.033, 20.3 subdivision 6, is amended to read: 20.4 Subd. 6. [IF ALSO INBOARDDIRECTOR'S PROCEEDING.] 20.5 Whenever a proceeding for annexation is initiated under this 20.6 section and all or any part of the land is included in another 20.7 boundary adjustment proceeding pending before theboard20.8 director, no action thereon shall be taken by the municipality, 20.9 unless otherwise provided by an order of theboarddirector, 20.10 until final disposition has been made of the pending petition 20.11pending before the board. Under this section theboarddirector 20.12 will accept a waiver from all parties having a right to object, 20.13 stating they have no objections to the proposed annexation and 20.14 waiving the 90 day period before an annexation ordinance may be 20.15 adopted. 20.16 Sec. 11. Minnesota Statutes 2000, section 414.033, 20.17 subdivision 7, is amended to read: 20.18 Subd. 7. [FILING; EFFECTIVE DATE; COPY, LEVIES.] Any 20.19 annexation ordinance provided for in this section must be filed 20.20 with theboarddirector, the township, the county auditor and 20.21 the secretary of state and is final on the date the ordinance is 20.22 approved by theboarddirector. A copy of the annexation 20.23 ordinance must be delivered immediately by the governing body of 20.24 the municipality to the appropriate countyauditor orauditors. 20.25 Sec. 12. Minnesota Statutes 2000, section 414.033, 20.26 subdivision 10, is amended to read: 20.27 Subd. 10. [ADDITIONAL INFORMATIONTO BOARD.] Themunicipal20.28boarddirector may, at its discretion,require the city or 20.29 property owners to furnish additional information concerning an 20.30 annexation by ordinance to inform theboarddirector about the 20.31 extent to which the proposed annexation conforms to the 20.32 statutory criteria set forth in sections 414.01, subdivision 1 20.33 and 414.031, subdivision 4. 20.34 Sec. 13. Minnesota Statutes 2000, section 414.0335, is 20.35 amended to read: 20.36 414.0335 [ORDERED GOVERNMENTAL SERVICE EXTENSION; 21.1 ANNEXATION BY ORDINANCE.] 21.2 If a determination or order by the pollution control 21.3 agency, under section 115.49 or other similar statute is made, 21.4 that cooperation by contract is necessary and feasible between a 21.5 municipality and an unincorporated area located outside the 21.6 existing corporate limits of a municipality, the municipality 21.7 required to provide or extend through a contract a governmental 21.8 service to an unincorporated area, during the statutory 90-day 21.9 period provided in section 115.49 to formulate a contract, may 21.10 in the alternative to formulating a service contract to provide 21.11 or extend the service, declare the unincorporated area described 21.12 in the pollution control agency's determination letter or order 21.13 annexed to the municipality by adopting an ordinance and 21.14 submitting it to themunicipal board or its successordirector. 21.15 Themunicipal board or its successordirector may review and 21.16 comment on the ordinance but shall approve the ordinance within 21.17 30 days of receipt. The ordinance is final and the annexation 21.18 is effective on the date themunicipal board or its successor21.19 director approves the ordinance. Thereafter, the city shall 21.20 amend its comprehensive plan and official controls in accordance 21.21 with chapter 462. 21.22 Sec. 14. Minnesota Statutes 2000, section 414.035, is 21.23 amended to read: 21.24 414.035 [DIFFERENTIAL TAXATION.] 21.25 Whenevera boardan order, under section 414.031, 414.0325, 21.26 or 414.033, annexes part or all of a township to a municipality, 21.27 theboardorder may provide that the tax rate of the annexing 21.28 municipality on the area annexed shall be increased in 21.29 substantially equal proportions over not more than six years to 21.30 equality with the tax rate on the property already within the 21.31 municipality. The appropriate period, if any, shall be based on 21.32 the time reasonably required to effectively provide full 21.33 municipal services to the annexed area. 21.34 Sec. 15. Minnesota Statutes 2000, section 414.036, is 21.35 amended to read: 21.36 414.036 [MUNICIPAL REIMBURSEMENT.] 22.1 Whena boardan order under section 414.0325 annexes part 22.2 of a town to a municipality, the orderly annexation agreement 22.3 between the town and municipality may provide a reimbursement 22.4 from the municipality to the town for all or part of the taxable 22.5 property annexed as part of theboardorder. The reimbursement 22.6 shall be completed in substantially equal payments over not less 22.7 than two nor more than six years from the time of annexation. 22.8 Sec. 16. Minnesota Statutes 2000, section 414.041, is 22.9 amended to read: 22.10 414.041 [CONSOLIDATION OF MUNICIPALITIES.] 22.11 Subdivision 1. [INITIATING THE PROCEEDING.] (a) Two or 22.12 more municipalities may be the subject of a single proceeding 22.13 provided that each municipality abuts at least one of the 22.14 included municipalities. 22.15 (b) The proceeding shall be initiated in one of the 22.16 following ways: 22.17(a)(1) submitting to theexecutivedirector a resolution 22.18 of the city council of each affected municipality; 22.19(b)(2) submitting to theexecutivedirector a petition 22.20 signed by five percent or more of the resident voters of a 22.21 municipality who voted for governor at the last general 22.22 election; or 22.23(c)(3) by theboard on its own motiondirector. 22.24 (c) The petition or resolution shall set forth the 22.25 following information about each included municipality: name, 22.26 description of boundaries, the reasons for requesting the 22.27 consolidation and the names of all parties entitled to mailed 22.28 notice under section 414.09. 22.29 (d) The party initiating the proceeding shall serve copies 22.30 of the petition or resolution on all of the included 22.31 municipalities. 22.32 Subd. 2. [CONSOLIDATION COMMISSION.] Upon receipt of a 22.33 petition or a resolution requesting consolidation or upon the 22.34board'sdirector's own motion, theboarddirector shall appoint 22.35 a consolidation commission from a list of ten candidates 22.36 submitted by each affected city council. The commission shall 23.1 be composed of not fewer than five members from each affected 23.2 municipality. From a separate list of three persons submitted 23.3 by each affected city council, theboarddirector shall appoint 23.4 a commission chair who is not a resident of an affected 23.5 municipality but who resides in an affected county. 23.6 No person is disqualified from serving on a consolidation 23.7 commission by reason of holding other elected or appointed 23.8 office. Consolidation commission members shall hold office 23.9 until a consolidation report has been issued by the commission. 23.10 Theboarddirector shall fill vacancies in the commission by 23.11 appointment. The consolidation commission shall make rules with 23.12 reference to its operation and procedures including quorum 23.13 requirements with reference to its operations and procedures. 23.14 Subd. 3. [COMMISSION'S HEARING AND REPORT.] (a) The 23.15 consolidation commission shall conduct hearings regarding the 23.16 proposed consolidation. 23.17 (b) The hearings shall include, but are not limited to, the 23.18 following subjects: 23.19(a)(1) the contents of any city charter for the proposed 23.20 consolidated city or the form of government of the proposed 23.21 consolidated city; 23.22(b)(2) analysis of whether a ward system shall be included 23.23 in the form of government of the proposed consolidated city; and 23.24(c)(3) each factor considered by theboarddirector under 23.25 section 414.02, subdivision 3. 23.26 (c) Based on these factors and upon other matters which 23.27 come before the consolidation commission, the commission shall 23.28 issue a report to themunicipal boarddirector with findings and 23.29 recommendations within two years from the date of theboard's23.30 director's initial appointment of the commission. 23.31 Subd. 4. [BOARD'SDIRECTOR'S HEARING AND NOTICE.] Upon 23.32 receipt of the commission's report, theexecutivedirector shall 23.33 designate a time and a place for a hearing in accordance with 23.34 section 414.09. 23.35 Subd. 5. [BOARD'SRELEVANT FACTORS, ORDER.] (a) In 23.36 arriving atitsa decision, theboarddirector shall consider 24.1 the factors in section 414.02, subdivision 3. 24.2 (b) Theboarddirector shall consider and may accept, 24.3 amend, return to the commission for amendment or further study, 24.4 or reject the commission's findings and recommendations based 24.5 upon theboard'sdirector's written determination of what is in 24.6 the best interests of the affected municipalities. 24.7 (c) Theboarddirector shall order the consolidationif it24.8findson finding that consolidation will be for the best 24.9 interests of the municipalities. In all cases, theboard24.10 director shall set forth the factors which are the basis for the 24.11 decision. 24.12 (d) If theboarddirector orders consolidation,itthe 24.13 order shall provide for election of new municipal officers in 24.14 accordance with section 414.09. 24.15 (e) If the most populous of the included municipalities is 24.16 a statutory city, the new municipality shall be a statutory city 24.17 and the plan of government shall be Optional Plan A, provided 24.18 that an alternate plan may be adopted pursuant to section 24.19 412.551, at any time. If the most populous of the included 24.20 municipalities is a home rule charter city or organized under a 24.21 statute other than chapter 412, the new municipality shall be 24.22 governed by its home rule charter or the statutory form under 24.23 which it is governed except that any ward system for the 24.24 election of council members shall be inoperable. 24.25 (f) If the commission's findings and recommendations 24.26 include a proposed home rule charter for the new municipality, 24.27 theboard may in itsorder may combine the issue of the adoption 24.28 of the charter and the vote on approval of the order for 24.29 consolidation into one question on the ballot, and shall submit 24.30 it in a special or general election as provided in section 24.31 410.10. 24.32 (g) The ordinances of all of the included municipalities 24.33 shall continue in effect within their former boundaries until 24.34 repealed by the governing body of the new municipality. 24.35 (h) Notwithstanding any other provision of law to the 24.36 contrary, theboard may in itsorder may establish a ward system 25.1 in the new municipality, in which eventitthe order shall 25.2 establish not less than three nor more than seven wards, each of 25.3 which shall elect one council member. When more than two years 25.4 have elapsed after consolidation, the governing body may, by a 25.5 four-fifths vote, abolish the ward system. 25.6 (i) The new municipality shall assume the name of the most 25.7 populous municipality unless previous to the election another 25.8 name is chosen by joint resolution of a majority of the included 25.9 municipalities or by the consolidation commission. 25.10 (j) The number of license privileges existing in the 25.11 included municipalities prior to consolidation and pursuant to 25.12 state law shall not be diminished as a result of the 25.13 consolidation. 25.14 (k) If the consolidation is denied or defeated in a 25.15 referendum, no proceeding for the consolidation of the same 25.16 municipalities may be initiated within two years from the date 25.17 of theboard'sorder unless authorized by theboarddirector. 25.18 Subd. 6. [FINAL APPROVAL.] (a) If the consolidation was 25.19 initiated by a petition of the resident voters of a 25.20 municipality, theboard'sorder for consolidation shall be final 25.21 upon approval by resolution of the city councils in each of the 25.22 affected municipalities unless ten percent or more of the 25.23 resident voters of an affected municipality who voted for 25.24 governor at the last general election petition the city council 25.25 for a referendum on the consolidation. The petition must be 25.26 submitted within 90 days of the final date of theboard'sorder 25.27 or the date of final approval of theboard'sorder by the city 25.28 councils, whichever is later. 25.29 (b) Upon receipt and verification of the petition, the 25.30boarddirector shall order the municipalities to conduct 25.31 separate referenda at a general or special election in each 25.32 municipality on the same day, and the referenda shall be held 25.33 within six months of the receipt of the petition. 25.34 (c) Costs of the respective referenda shall be borne by the 25.35 respective municipality. A majority of those voting in each 25.36 city must approve the proposed consolidation. The results of 26.1 the referenda shall be certified to theexecutivedirectorof26.2the municipal boardby the chief election judge within ten days 26.3 after the referenda. Theexecutivedirector shall upon receipt 26.4 of the certificate notify all parties of the election results. 26.5(b)(d) If the consolidation was initiated by a city 26.6 council resolution of each affected municipality, theboard's26.7 order for consolidation shall be final unless ten percent or 26.8 more of the resident voters of an affected municipality petition 26.9 for a referendum as provided inclauseparagraph (a). 26.10(c)(e) If the consolidation was initiated by theboard's26.11own motiondirector, no director's consolidation orderof the26.12boardinvolving existing municipalities shall become effective 26.13 unless adopted by the council of each affected municipality by a 26.14 majority vote and unless the consolidation orderof the boardis 26.15 approved by the qualified voters of the affected municipalities 26.16 at a general or special election set according to law. The form 26.17 of the ballot shall be fixed by theboarddirector; and, if a 26.18 majority of the votes cast on the question in each municipality 26.19 are in favor of its adoption, the orderof the boardshall 26.20 become effective as provided herein. 26.21(d)(f) Notwithstanding a disapproval of theboard'sorder 26.22 for consolidation by a city council of an affected municipality 26.23 required to approve theboard'sorder inclauseparagraph (a) or 26.24(c)(e), theboard'sorder for consolidation shall nevertheless 26.25 be deemed approved by that city council if ten percent or more 26.26 of the resident voters of that municipality who voted for 26.27 governor at the last general election petition the city council 26.28 for a referendum on the consolidation as provided inclause26.29 paragraph (a), and a majority of those voting in that 26.30 municipality approve theboard'sorder for consolidation. 26.31 Subd. 7. [DIFFERENTIAL TAXATION.] Where one municipality 26.32 is receiving substantially fewer municipal services, theboard26.33 director may provide that the tax rate of the municipality shall 26.34 be increased in substantially equal proportions over a period of 26.35 not more than five years to equality with the tax rate in the 26.36 remainder of the new municipality. The period shall be 27.1 determined by theboarddirector on the basis of the period 27.2 reasonably required to provide substantially equal municipal 27.3 services. 27.4 Subd. 8. [EFFECTIVE DATE.] The consolidation shall be 27.5 effective upon the election and qualification of new municipal 27.6 officers, or at such later date as set by theboard in itsorder. 27.7 Sec. 17. Minnesota Statutes 2000, section 414.051, is 27.8 amended to read: 27.9 414.051 [BOARD'SREVIEW OF TOWNSHIPS ACCORDING TO 27.10 POPULATION.] 27.11 After each federal census theboarddirector may determine 27.12 the townships which have a population in excess of 2,000 27.13 exclusive of any municipality or part of a municipality within 27.14 the township and make recommendations whichit deemsthe 27.15 director considers necessary and reasonable to the board of any 27.16 such township. 27.17 Sec. 18. Minnesota Statutes 2000, section 414.06, is 27.18 amended to read: 27.19 414.06 [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] 27.20 Subdivision 1. [INITIATING THE PROCEEDING.] Property which 27.21 is situated within a municipality and abutting the municipal 27.22 boundary, rural in character and not developed for urban 27.23 residential, commercial, or industrial purposes may be detached 27.24 from the municipality according to the following procedure. The 27.25 proceeding may be initiated by submitting to theboarddirector 27.26 a resolution of the municipality to which the land is attached 27.27 or by submitting to theboarddirector a petition of all of the 27.28 property owners of the land to be detached if the area is less 27.29 than 40 acres or of 75 percent of the property owners if over 40 27.30 acres. The petition or resolution shall set forth the 27.31 boundaries and the area of the land to be detached, the number 27.32 and character of the buildings, the resident population, and the 27.33 municipal improvements, if any, in the area. 27.34 Subd. 2. [HEARING, IF NEEDED.] If both a resolution of the 27.35 municipality and a petition by all the property owners are 27.36 submitted, no hearing is necessary. In any other case, upon 28.1 receipt of a petition or resolution, theexecutivedirectorof28.2the boardshall designate a time and place for a hearing in 28.3 accordance with section 414.09. 28.4 Subd. 3. [BOARD'SORDER.] Upon completion of the hearing, 28.5 theboarddirector may order the detachmentif it findson 28.6 finding that the requisite number of property owners have signed 28.7 the petition if initiated by the property owners, that the 28.8 property is rural in character and not developed for urban 28.9 residential, commercial or industrial purposes, that the 28.10 property is within the boundaries of the municipality and abuts 28.11 a boundary, that the detachment would not unreasonably affect 28.12 the symmetry of the detaching municipality, and that the land is 28.13 not needed for reasonably anticipated future development. 28.14 Theboarddirector may deny the detachmentif it findson 28.15 finding that the remainder of the municipality cannot continue 28.16 to carry on the functions of government without undue hardship. 28.17 Theboard shall have authority todirector may decrease the area 28.18 of property to be detached and may include only a part of the 28.19 proposed area to be detached. If the tract abuts more than one 28.20 township, it shall become a part of each township, being divided 28.21 by projecting through it the boundary line between the 28.22 townships. The detached area may be relieved of the primary 28.23 responsibility for existing indebtedness of the municipality and 28.24 be required to assume the indebtedness of the township of which 28.25 it becomes a part, in such proportion as theboarddirector 28.26 shall deem just and equitable having in view the amount of taxes 28.27 due and delinquent and the indebtedness of each township and the 28.28 municipality affected, if any, and for what purpose the same was 28.29 incurred, all in relation to the benefit inuring to the detached 28.30 area as a result of the indebtedness and the last net tax 28.31 capacity of the taxable property in each township and 28.32 municipality. 28.33 Subd. 4. [EFFECTIVE DATE.] The detachment shall be 28.34 effective upon the issuance of theboard'sorder, or at such 28.35 later date, as provided by theboard in itsorder. A copy of 28.36 the detachment order must be delivered immediately by 29.1 theexecutivedirectorof the Minnesota municipal boardto the 29.2 appropriate countyauditor orauditors. For the purposes of 29.3 taxation, if the detachment becomes effective on or before 29.4 August 1 of a levy year, thetown ortowns acquiring the 29.5 detached area may levy on it beginning with that same levy 29.6 year. If the detachment becomes effective after August 1 of a 29.7 levy year, the municipality may continue to levy on the detached 29.8 area for that levy year, and thetown ortowns acquiring the 29.9 detached area may not levy on it until the following levy year. 29.10 Sec. 19. Minnesota Statutes 2000, section 414.061, is 29.11 amended to read: 29.12 414.061 [CONCURRENT DETACHMENT AND ANNEXATION OF 29.13 INCORPORATED LAND.] 29.14 Subdivision 1. [INITIATING THE PROCEEDING.] Property of 29.15 one municipality which abuts another may be concurrently 29.16 detached and annexed by the procedure set forth in this 29.17 section. The proceeding shall be initiated by submitting to the 29.18executivedirector resolutions of both municipalities describing 29.19 the land and stating their desire to detach and annex the land. 29.20 Subd. 2. [BOARD'SORDER.] If the resolutions are in order, 29.21 theboarddirector may order the detachment and annexation. 29.22 Subd. 3. [EFFECTIVE DATE.] The concurrent detachment and 29.23 annexation shall be effective upon the issuance of theboard's29.24 order, or at such later date as provided by theboard in its29.25 order. A copy of the annexation order must be delivered 29.26 immediately by theexecutivedirectorof the Minnesota municipal29.27boardto the appropriate countyauditor orauditors. For the 29.28 purposes of taxation, if the annexation becomes effective on or 29.29 before August 1 of a levy year, the municipality acquiring the 29.30 detached area of another municipality may levy on it beginning 29.31 with that same levy year. If the annexation becomes effective 29.32 after August 1 of a levy year, the municipality losing the 29.33 detached area may continue to levy on it for that levy year, and 29.34 the municipality acquiring the detached area may not levy on it 29.35 until the following levy year. 29.36 Subd. 4. [BOARD INITIATIONDIRECTOR'S INITIATIVE.] 30.1 Theboarddirector (1) may initiate proceedings for the 30.2 concurrent detachment and annexation of portions of one 30.3 municipality completely surrounded by another municipality,on30.4its own motionor (2) may act upon the petition of all of the 30.5 owners of property in the completely surrounded area. In such 30.6 cases theboarddirector shall conduct hearings and issueitsan 30.7 order pursuant to section 414.09. In arriving atitsa 30.8 decision, theboarddirector shall consider the factors in 30.9 section 414.02, subdivision 3. Theboarddirector shall order 30.10 the proposed actionif it findson finding that it will be for 30.11 the best interests of the municipalities and the property 30.12 owners. In all cases, theboarddirector shall set forth the 30.13 factors which are the basis for the decision. 30.14 Subd. 5. [PROPERTY OWNER INITIATION.] Property owners may 30.15 initiate proceedings for the concurrent detachment of their 30.16 property from one municipality and its annexation to an adjacent 30.17 municipality by a petition signed by all of them that they 30.18 submit to theboarddirector accompanied by a resolution of the 30.19 city council of at least one of the affected municipalities. 30.20 Theboarddirector shall conduct hearings and issueitsan order 30.21 pursuant to section 414.09. In arriving atitsa decision, 30.22 theboarddirector shall consider the factors in section 414.02, 30.23 subdivision 3. Theboarddirector shall order the proposed 30.24 actionif it findson finding that it will be for the best 30.25 interests of the municipalities and the property owner. In all 30.26 cases, theboarddirector shall set forth the factors which are 30.27 the basis for the decision. 30.28 Sec. 20. Minnesota Statutes 2000, section 414.063, is 30.29 amended to read: 30.30 414.063 [JOINT AGREEMENTS.] 30.31 After notice and hearing as provided in section 414.09, the 30.32boarddirector may include provisions of joint agreements 30.33 between political subdivisions initsthe orders. 30.34 Sec. 21. Minnesota Statutes 2000, section 414.067, 30.35 subdivision 1, is amended to read: 30.36 Subdivision 1. [TOWNSHIP OR MUNICIPALITY DIVIDED.] 31.1 Whenever theboarddirector divides an existing governmental 31.2 unit, theboarddirector may apportion the property and 31.3 obligations between the governmental unit adding territory and 31.4 the governmental unit from which the territory was obtained. 31.5 The apportionment shall be made in a just and equitable manner 31.6 having in view the value of the existing township or municipal 31.7 property located in the area to be added, the assets, value, and 31.8 location of all the taxable property in the existing township or 31.9 municipality, the indebtedness, the taxes due and delinquent, 31.10 other revenue accrued but not paid to the existing township or 31.11 municipality and the ability of any remainder of the township or 31.12 municipality to function as an effective governmental unit. The 31.13 order shall not relieve any property from any tax liability for 31.14 payment for any bonded obligation, but the taxable property in 31.15 the new municipality may be made primarily liable thereon. 31.16 Sec. 22. Minnesota Statutes 2000, section 414.067, 31.17 subdivision 3, is amended to read: 31.18 Subd. 3. [REVISION OF TAX RECORDS; REDISTRIBUTION OF 31.19 LEVIES.] In an apportionment made under this section theboard31.20 director may order the county auditor to revise tax records and 31.21 respread levies at any time prior to December 15 or order the 31.22 county treasurer to redistribute taxes levied and receivable. 31.23 Sec. 23. Minnesota Statutes 2000, section 414.07, is 31.24 amended to read: 31.25 414.07 [APPEALS.] 31.26 Subdivision 1. [ORDERSOF BOARD, TIMELIMITATIONLIMIT.] 31.27 All ordersof the boardin proceedings under this chapter shall 31.28 be issued within one year from the date of the day of the first 31.29 hearing thereon provided that the time may be extended for a 31.30 fixed additional period upon consent of all parties of record. 31.31 Failure to so order shall be deemed to be an order denying the 31.32 matterbefore the board. An appeal may be taken from such 31.33 failure to so order in the same manner as an appeal from an 31.34 order as provided in subdivision 2. 31.35 Subd. 2. [GROUNDS FOR APPEAL.] (a) Any person aggrieved by 31.36 any orderof the boardissued under this chapter may appeal to 32.1 the district court upon the following grounds: 32.2(a)(1) that theboard had noorder was issued without 32.3 jurisdiction to act; 32.4(b)(2) that theboardorder exceededitsthe orderer's 32.5 jurisdiction; 32.6(c)(3) that the orderof the boardis arbitrary, 32.7 fraudulent, capricious or oppressive or in unreasonable 32.8 disregard of the best interests of the territory affected; or 32.9(d)(4) that the order is based upon an erroneous theory of 32.10 law. 32.11 (b) The appeal shall be taken in the district court in the 32.12 county in which the majority of the area affected is located. 32.13 The appeal shall not stay the effect of the order. All notices 32.14 and other documents shall be served on both theexecutive32.15 director and the attorney general's assistant assigned to the 32.16boarddirector for purposes of this chapter. 32.17 (c) If the court determines that the actionof the board32.18 involved is unlawful or unreasonable or is not warranted by the 32.19 evidence in case an issue of fact is involved, the court may 32.20 vacate or suspend the actionof the boardinvolved, in whole or 32.21 in part, as the case requires. The matter shall then be 32.22 remandedto the boardfor further action in conformity with the 32.23 decision of the court. 32.24 (d) To render a review ofa boardan order effectual, the 32.25 aggrieved person shall file with the court administrator of the 32.26 district court of the county in which the majority of the area 32.27 is located, within 30 days of the order, an application for 32.28 review together with the grounds upon which the review is sought. 32.29 (e) An appeal lies from the district court as in other 32.30 civil cases. 32.31 Sec. 24. Minnesota Statutes 2000, section 414.08, is 32.32 amended to read: 32.33 414.08 [APPEALS FROM DISTRICT COURT.] 32.34 An appeal may be taken under the rules of civil appellate 32.35 procedure by theMinnesota municipal boarddirector from a final 32.36 order or judgment made or rendered by the district court when 33.1 theboarddirector determines that the final order or judgment 33.2 adversely affects the public interest. 33.3 Sec. 25. Minnesota Statutes 2000, section 414.09, is 33.4 amended to read: 33.5 414.09 [UNIFORM PROCEDURESOF BOARD.] 33.6 Subdivision 1. [HEARINGS.] Proceedings initiated by the 33.7 submission of an initiating document or by theboard of its own33.8motiondirector shall come on for hearing within 30 to 60 days 33.9 from receipt of the document by theboarddirector or from the 33.10 date ofboardthe director's action and theboardperson 33.11 conducting the hearing must submititsan order no later than 33.12 one year from the date of the day of the first hearing.In any33.13proceeding before the board and upon the request of any party,33.14the board shall meet physically rather than by means of33.15electronic media.The place of the hearing shall be in the 33.16 county where a majority of the affected territory is situated, 33.17 and shall be established for the convenience of the parties. 33.18 Theexecutivedirector shall mail notice of the hearing to the 33.19 following parties: the township or municipality presently 33.20 governing the affected territory; any township or municipality 33.21 abutting the affected territory; the county where the affected 33.22 territory is situated; and each planning agency which has 33.23 jurisdiction over the affected area. Theexecutivedirector 33.24 shallcausesee that notice of the hearingto beis published 33.25 for two successive weeks in a legal newspaper of general 33.26 circulation in the affected area. When theboarddirector 33.27 exercisesitsauthority to change the boundaries of the affected 33.28 area so as to increase the quantity of the land, the hearing 33.29 shall be recessed and reconvened upon two weeks' published 33.30 notice in a legal newspaper of general circulation in the 33.31 affected area. 33.32 Subd. 2. [TRANSMITTAL OFBOARD'SORDER.] Theexecutive33.33 director shallcausesee that copies of theboard'sorderto33.34beare mailed to all parties entitled to mailed notice of 33.35 hearing under subdivision 1, the secretary of state, the 33.36 department of revenue, the state demographer, individual 34.1 property owners if initiated in that manner, affected county 34.2 auditor, and any other party of record. The affected county 34.3 auditor shall record the order against the affected property. 34.4 Subd. 3. [ELECTIONS OF MUNICIPAL OFFICERS.] An order 34.5 approving an incorporation or consolidation pursuant to this 34.6 chapter shall set a date forthisan election of new municipal 34.7 officers not less than 45 days nor more than 60 days after the 34.8 issuance ofsuchthe order. Theboarddirector shall appoint an 34.9 acting clerk for election purposes, at least three election 34.10 judges who shall be residents of the new municipality, and shall 34.11 designate polling places within the new municipality. 34.12 The acting clerk shall prepare the official election 34.13 ballot. Affidavits of candidacy may be filed by any person 34.14 eligible to hold municipal office not more than four weeks nor 34.15 less than two weeks before the date designated by theboard34.16 director for the election. 34.17 The election shall be conducted in conformity with the 34.18 charter and the laws for conducting municipal elections insofar 34.19 as applicable. Any person eligible to vote at a township or 34.20 municipal election within the area of the new municipality, is 34.21 eligible to vote at such election. 34.22 Any excess in the expense of conducting the election over 34.23 receipts from filing fees shall be a charge against the new 34.24 municipality; any excess of receipts shall be deposited in the 34.25 treasury of the new municipality. 34.26 Sec. 26. Minnesota Statutes 2000, section 414.12, 34.27 subdivision 1, is amended to read: 34.28 Subdivision 1. [ALTERNATIVE DISPUTE RESOLUTION.] (a) 34.29 Notwithstanding anything to the contrary in sections 414.01 to 34.30414.11414.09, the directorof the office of strategic and34.31long-range planning, upon consultation with affected parties and 34.32 considering the procedures and principles established in 34.33 sections 414.01 to414.11414.09, and Laws 1997, chapter 202, 34.34 article 4, sections 1 to 13, may require that disputes over 34.35 proposed boundary adjustments be resolved by means of 34.36 alternative dispute resolution processes in place of hearings 35.1 that would otherwise be required pursuant to sections 414.01 to 35.2 414.09, including those provided in chapter 14, in the execution 35.3 of theoffice'sdirector's duties under this chapter. 35.4 (b) Alternative dispute resolution processes that may be 35.5 required include: 35.6 (1) the contested case procedures provided by sections 35.7 14.57 to 14.62; 35.8 (2) the mediation and arbitration process provided by 35.9 sections 572A.015 to 572A.03; or 35.10 (3) another mediation and arbitration process ordered by 35.11 the director. 35.12 Sec. 27. Minnesota Statutes 2000, section 414.12, 35.13 subdivision 2, is amended to read: 35.14 Subd. 2. [DELEGATION OF AUTHORITY.] The director may, with 35.15 the agreement of the chief administrative law judge, delegate to 35.16 the office of administrative hearings, in any individual case or 35.17 group of cases, the director's authority and responsibility to 35.18 conduct hearings and issuefinalorders related to the hearings 35.19 under sections 414.01 to 414.09. In the case of detachment of 35.20 lands from a municipality, if the parties do not agree to 35.21 resolve a boundary adjustment matter by mediation or 35.22 arbitration, then the case shall be referred to an 35.23 administrative law judge to conduct hearings and issuefinal35.24 orders related to the hearings under sections 414.01 to 414.09. 35.25 Sec. 28. [TEMPORARY RULES.] 35.26 Notwithstanding Minnesota Statutes, section 414.01, 35.27 subdivision 10, until new rules are adopted by the office of 35.28 strategic and long-range planning as provided under Laws 2000, 35.29 chapter 446, section 2, or other law, Minnesota Rules, chapter 35.30 6000, must be followed to the extent applicable and consistent 35.31 with the transfer of authority from the former municipal board 35.32 to the director of the office of strategic and long-range 35.33 planning. 35.34 Sec. 29. [REPEALER.] 35.35 Minnesota Statutes 2000, sections 414.01, subdivisions 2 35.36 and 6a; 414.011, subdivision 8; and 414.11, are repealed.