Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 313-S.F.No. 542 
           An act relating to agriculture; changing the 
          agricultural land preservation law; amending Minnesota 
          Statutes 1988, sections 40A.02, subdivision 10; 
          40A.04, subdivision 1; 40A.10; 40A.11, subdivision 4; 
          40A.17; 273.119; and 473H.03, by adding a subdivision; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 40A; repealing Minnesota Statutes 1988, 
          section 40A.123, subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 40A.02, 
subdivision 10, is amended to read: 
    Subd. 10.  [EXCLUSIVE AGRICULTURAL USE ZONE PRESERVE.] 
"Exclusive Agricultural use zone preserve" or "zone preserve" 
means a zone preserve created under this chapter.  
    Sec. 2.  Minnesota Statutes 1988, section 40A.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  [COUNTIES.] After January 1, 1987, a county 
located outside of the metropolitan area may submit to the 
commissioner and to the regional development commission in which 
it is located, if one exists, a proposed agricultural land 
preservation plan and proposed official controls implementing 
the plan.  To the extent practicable, submission of the proposal 
must coincide with the completion of the county soil survey.  
The commissioner, in consultation with the regional development 
commission, shall review the plan and controls for consistency 
with the elements in this chapter and shall submit written 
comments to the county within 90 60 days of receipt of the 
proposal.  The comments must include a determination of whether 
the plan and controls are consistent with the elements in this 
chapter.  The commissioner shall notify the county of its 
determination.  If the commissioner determines that the plan and 
controls are consistent, the county shall adopt the controls 
within 60 90 days of completion of the commissioner's review.  
If the commissioner determines that the plan and controls are 
not consistent, the comments must include the additional 
elements that must be addressed by the county.  The county shall 
amend its plan and controls to include the additional elements 
and adopt the amended controls within 90 120 days of completion 
of the commissioner's review.  
    Sec. 3.  Minnesota Statutes 1988, section 40A.10, is 
amended to read: 
    40A.10 [APPLICATION FOR CREATION OF EXCLUSIVE 
AGRICULTURAL USE ZONE PRESERVE.] 
    Subdivision 1.  [CONTENTS.] An eligible person may apply to 
the county in which the land is located for the creation of 
an exclusive agricultural use zone preserve on forms provided by 
the commissioner.  In case a zone preserve is located in more 
than one county, the application must be submitted to the county 
in which the majority of the land is located.  The application 
must contain at least the following information and other 
information the commissioner requires:  
    (a) Legal description of the area to be designated and 
parcel identification numbers where designated by the county 
auditor; 
    (b) Name and address of the owner; 
    (c) A witnessed signature of the owner covenanting that the 
land will be kept in exclusive agricultural use and will be used 
in accordance with the provisions of this chapter that exist on 
the date of application; and 
    (d) A statement that the restrictive covenant will be 
binding on the owner or the owner's successor or assignee, and 
will run with the land.  
    In the case of registered property, the owner shall submit 
the owner's duplicate certificate of title along with the 
application.  
    Subd. 2.  [REVIEW AND NOTICE.] Upon receipt of an 
application, the county shall determine if all material required 
by subdivision 1 has been submitted and, if so, shall determine 
that the application is complete.  When used in this chapter, 
the term "date of application" means the date the application is 
determined to be complete by the county.  The county shall send 
a copy of the application to the county assessor, the regional 
development commission, where applicable, and the soil and water 
conservation district where the land is located.  The district 
shall prepare an advisory statement of existing and potential 
conservation problems in the zone.  The district shall send the 
statement to the owner of record and to the commissioner.  A 
copy of the application and a legal description of the property 
must also be sent to the commissioner. 
    Subd. 3.  [RECORDING.] Within five days of the date of 
application, the county shall forward the application to the 
county recorder, together with the owner's duplicate certificate 
of title in the case of registered property.  The county 
recorder shall record the restrictive covenant and return it to 
the applicant.  In the case of registered property, the recorder 
shall memorialize the restrictive covenant upon the certificate 
of title and the owner's duplicate certificate of title.  The 
recorder shall notify the county that the covenant has been 
recorded or memorialized.  
    Subd. 4.  [COMMENCEMENT OF EXCLUSIVE AGRICULTURAL USE 
ZONE.] The land is an exclusive agricultural use zone and 
subject to the benefits and restrictions of this chapter 
commencing 30 days from the date the county determines the 
application is complete under subdivision 1.  
    Subd. 5.  [FEE.] The county may require an application fee, 
not to exceed $50.  
    Subd. 6.  [MAPS.] The commissioner shall maintain 
agricultural preserve maps illustrating land covenanted as 
agricultural preserves. 
    Sec. 4.  Minnesota Statutes 1988, section 40A.11, 
subdivision 4, is amended to read: 
    Subd. 4.  [NOTICE AND RECORDING; TERMINATION.] When the 
county receives notice under subdivision 2 or serves notice 
under subdivision 3, the county shall forward the original 
notice to the county recorder for recording and shall notify the 
regional development commission, the commissioner, and the 
county soil and water conservation district of the date of 
expiration.  Designation as an exclusive agricultural use zone 
preserve and the benefits and limitations contained in this 
chapter and the restrictive covenant filed with the application 
cease on the date of expiration.  In the case of registered 
property, the county recorder shall cancel the restrictive 
covenant upon the certificate of title and the owner's duplicate 
certificate of title on the effective date of the expiration.  
    Sec. 5.  Minnesota Statutes 1988, section 40A.17, is 
amended to read: 
    40A.17 [REPORT.] 
    The commissioner shall report to the legislature on January 
1 and July 1 of each year on activities under this chapter.  By 
July 1, 1985, the report must include the survey of public 
awareness in the awareness program.  The report shall include 
recommendations for funding levels and other necessary 
legislative action.  
    Sec. 6.  [40A.18] [LAND USE.] 
     Subdivision 1.  [AGRICULTURAL PRODUCTION.] Land within an 
agricultural preserve must be maintained for agricultural 
production.  The average maximum density of residential 
structures within an agricultural preserve and the location of a 
new structure must conform to locally applicable plan or zoning 
regulations.  Commercial and industrial uses are not permitted 
except as provided in subdivision 2 after the user is issued a 
permit by the local government.  The local government is 
responsible for enforcing this section. 
     Subd. 2.  [ALLOWED COMMERCIAL AND INDUSTRIAL 
OPERATIONS.] Commercial and industrial operations are not 
allowed on land within an agricultural preserve except: 
     (1) small on-farm commercial or industrial operations 
normally associated with and important to farming in the 
agricultural preserve area; 
     (2) storage use of existing farm buildings that does not 
disrupt the integrity of the agricultural preserve; and 
     (3) small commercial use of existing farm buildings for 
trades not disruptive to the integrity of the agricultural 
preserve such as a carpentry shop, small scale mechanics shop, 
and similar activities that a farm operator might conduct. 
"Existing" in clauses (2) and (3) means existing on August 1, 
1989. 
     Subd. 3.  [DENSITY RESTRICTION AFTER SUBDIVISION.] If a 
separate parcel is created for a residential structure, 
commercial, or industrial use permitted under subdivision 1, the 
parcel is no longer an agricultural preserve unless the 
eligibility requirements of section 40A.09 and any county 
eligibility requirements are met.  However, the separate parcel 
must remain under the maximum residential density restrictions 
in effect for the original preserve at the time it was placed 
into the preserve until the agricultural preserve status for the 
original parcel ends. 
    Sec. 7.  [40A.19] [TRANSFER FROM AGRICULTURAL PROPERTY TAX 
LAW TREATMENT.] 
    When land which has been receiving the special agricultural 
valuation and tax deferment provided in section 273.111 becomes 
an agricultural preserve under sections 40A.02 to 40A.17, the 
recapture of deferred tax and special assessments as provided in 
section 273.111, subdivisions 9 and 11, may not be made.  
Special assessments deferred under section 273.111, at the date 
of commencement of the preserve, must continue to be deferred 
for the duration of the preserve.  All these deferred special 
assessments are payable within 90 days of the date of expiration 
unless other terms are mutually agreed upon by the authority and 
the owner.  In the event of early termination of a preserve or a 
portion of it under section 40A.11, subdivision 5, all special 
assessments accruing to the terminated portion plus interest are 
payable within 90 days of the date of termination unless 
otherwise deferred or abated by executive order of the 
governor.  In the event of a taking under section 40A.122, all 
special assessments accruing to the taken portion plus interest 
are payable within 90 days of the date the final certificate is 
filed with the court administrator of district court in 
accordance with section 117.205. 
    Sec. 8.  Minnesota Statutes 1988, section 273.119, is 
amended to read: 
    [273.119] [CONSERVATION TAX CREDIT.] 
    Subdivision 1.  [ELIGIBILITY; AMOUNT OF CREDIT.] Land 
located in an exclusive agricultural use zone preserve created 
under chapter 40A is eligible for a property tax credit of $1.50 
per acre.  To begin to qualify for the tax credit in any year, 
the owner shall file with the assessor county by June 30 January 
2 of that any year a record of the an application for an 
agricultural preserve restrictive covenant received by the owner 
under pursuant to section 40A.10, subdivision 3 1.  An owner who 
has given notice of termination of the exclusive agricultural 
use zone under section 40A.11, subdivision 2, is not eligible 
for the credit.  The assessor shall indicate the amount of the 
property tax reduction on the property tax statement of each 
taxpayer receiving a credit under this section.  The credit paid 
pursuant to this section shall be deducted from the tax due on 
the property before computation of the homestead credit paid 
pursuant to section 273.13 and the state agricultural credit 
paid pursuant to section 124.2137. 
     Subd. 2.  [REIMBURSEMENT FOR LOST REVENUE.] The county may 
transfer money from the county conservation account created in 
section 40A.152 to the county revenue fund to reimburse the fund 
for the cost of the property tax credit.  The county auditor 
shall certify to the commissioner of revenue on or before June 1 
of each year, as part of the abstracts of tax lists required to 
be filed with the commissioner under section 275.29, the amount 
of tax lost to the county from the property tax credit under 
subdivision 1 and the extent that the tax lost exceeds funds 
available in the county conservation account.  Any prior year 
adjustments must also be certified in the abstracts of tax 
lists.  The commissioner of revenue shall review the 
certifications to determine their accuracy.  The commissioner 
may make the changes in the certification that are considered 
necessary or return a certification to the county auditor for 
corrections.  On or before July 15 of each year, the 
commissioner shall reimburse the county from the Minnesota 
conservation fund under section 40A.151 for the taxes lost in 
excess of the county account. 
      Sec. 9.  Minnesota Statutes 1988, section 473H.03, is 
amended by adding a subdivision to read: 
     Subd. 6.  Contiguous long-term agricultural land not 
meeting the total acreage requirements of this section but under 
the same ownership as an agricultural preserve adjoining it on 
at least one side shall be eligible for designation as an 
agricultural preserve. 
    Sec. 10.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes shall change the words "exclusive 
agricultural use zone" wherever they appear in Minnesota 
Statutes to "agricultural preserve." 
    Sec. 11.  [REPEALER.] 
     Minnesota Statutes 1988, section 40A.123, subdivision 3, is 
repealed. 
    Presented to the governor May 30, 1989 
    Signed by the governor June 1, 1989, 11:19 p.m.