Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 446-S.F.No. 2951 
                  An act relating to municipalities; clarifying the use 
                  of alternative dispute resolution in certain 
                  proceedings; requiring a report to the legislature; 
                  exempting the office of strategic and long-range 
                  planning from adopting rules until a certain date; 
                  providing instructions to the revisor of statutes; 
                  amending Minnesota Statutes 1999 Supplement, section 
                  414.12; repealing Minnesota Statutes 1998, section 
                  414.10. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1999 Supplement, section 
        414.12, is amended to read: 
           414.12 [DIRECTOR'S POWERS.] 
           Subdivision 1.  [ALTERNATIVE DISPUTE RESOLUTION.] 
        Notwithstanding anything to the contrary in sections 414.01 to 
        414.11, the director of the office of strategic and long-range 
        planning, upon consultation with affected parties and 
        considering the procedures and principles established in 
        sections 414.01 to 414.11, and Laws 1997, chapter 202, article 
        4, sections 1 to 13, may require that disputes over proposed 
        boundary adjustments be resolved by means of alternative dispute 
        resolution processes in place of hearings that would otherwise 
        be required pursuant to sections 414.01 to 414.09, including 
        those provided in chapter 14, in the execution of the office's 
        duties under this chapter.  Alternative dispute resolution 
        processes that may be required include: 
           (1) the contested case procedures provided by sections 
        14.57 to 14.62; 
           (2) the mediation and arbitration process provided by 
        sections 572A.015 to 572A.03; or 
           (3) another mediation and arbitration process ordered by 
        the director.  
           Subd. 2.  [DELEGATION OF AUTHORITY.] The director may, with 
        the agreement of the chief administrative law judge, delegate to 
        the office of administrative hearings, in any individual case or 
        group of cases, the director's authority and responsibility to 
        conduct hearings and issue final orders under sections 414.01 to 
        414.09.  In the case of detachment of lands from a municipality, 
        if the parties do not agree to resolve a boundary adjustment 
        matter by mediation or arbitration, then the case shall be 
        referred to an administrative law judge to conduct hearings and 
        issue final orders under sections 414.01 to 414.09. 
           Subd. 3.  [COST OF PROCEEDINGS.] The parties to any matter 
        directed to alternative dispute resolution under subdivision 1 
        or delegated to the office of administrative hearings under 
        subdivision 2 must pay the costs of the alternative dispute 
        resolution process or hearing in the proportions that they agree 
        to.  Notwithstanding section 14.53 or other law, the office of 
        strategic and long-range planning is not liable for the costs.  
        If the parties do not agree to a division of the costs before 
        the commencement of mediation, arbitration, or hearing, the 
        costs must be allocated on an equitable basis by the mediator, 
        arbitrator, or chief administrative law judge.  The chief 
        administrative law judge may contract with the parties to a 
        matter directed or delegated to the office of administrative 
        hearings under subdivisions 1 and 2 for the purpose of providing 
        administrative law judges and reporters for an administrative 
        proceeding or alternative dispute resolution.  The chief 
        administrative law judge shall assess the cost of services 
        rendered as provided by section 14.53. 
           Subd. 4.  [PARTIES.] In this section, "party" means: 
           (1) a property owner, group of property owners, 
        municipality, or township that files an initiating document or 
        timely objection under this chapter; 
           (2) the municipality or township within which the subject 
        area is located; 
           (3) a municipality abutting the subject area; and 
           (4) any other person, group of persons, or governmental 
        agency residing in, owning property in, or exercising 
        jurisdiction over the subject area that files with the director 
        a notice of appearance within 14 days of publication of the 
        notice required by section 414.09. 
           Sec. 2.  [REPORT TO LEGISLATURE; RULES EXEMPTION.] 
           The director of the office of strategic and long-range 
        planning must report to the senate committee on local and 
        metropolitan government and the house of representatives 
        committee on local government and metropolitan affairs by 
        February 1, 2002, on the effect of the transfer to the office of 
        authority and duties under Minnesota Statutes, chapter 414.  The 
        report must describe the successes and failures of the processes 
        in resolving disputes and include the comments, suggestions, and 
        criticisms of the processes from local governments that have 
        participated in the processes, interested associations 
        representing local governments, administrative law judges that 
        have presided over boundary adjustment matters, and the office 
        of administrative hearings.  The office of strategic and 
        long-range planning is exempt from any requirement to adopt or 
        amend rules governing boundary adjustment procedures until after 
        May 1, 2002. 
           Sec. 3.  [REVISOR INSTRUCTION.] 
           The revisor of statutes is directed to prepare legislation 
        for the 2001 legislative session that makes changes to Minnesota 
        Statutes, chapter 414, to reflect the transfer of powers and 
        duties from the Minnesota municipal board, now abolished, to the 
        office of strategic and long-range planning.  In preparing the 
        legislation, the revisor may consult with any interested 
        person.  The revisor shall provide the preliminary draft 
        legislation to the chairs of the house local government and 
        metropolitan affairs committee and the senate local and 
        metropolitan government committee. 
           Sec. 4.  [REPEALER.] 
           Minnesota Statutes 1998, section 414.10, is repealed. 
           Sec. 5.  [EFFECTIVE DATES.] 
           Subdivision 1.  [PROCEEDINGS.] Section 1, subdivisions 1, 
        2, and 4, are effective retroactive to June 1, 1999, and apply 
        to all matters pending on or commenced on or after that date.  
        Sections 2 and 3 are effective the day following final enactment.
           Subd. 2.  [COSTS.] Section 1, subdivision 3, is effective 
        retroactive to June 1, 1999, and applies only to boundary 
        adjustment matters commenced on or after June 1, 1999.  In any 
        proceeding in which a decision by the Minnesota municipal board 
        prior to June 1, 1999, was enjoined by court order, the 
        disputing parties are liable for any costs as provided in 
        section 1, subdivision 3, incurred on or after June 1, 1999.  
        For all boundary adjustment matters commenced before June 1, 
        1999, all costs must be allocated as provided in law and rule 
        prior to the abolition of the Minnesota municipal board, and the 
        maximum total amount the parties may be charged by the office of 
        strategic and long-range planning, the office of administrative 
        hearings, or as part of an arbitration is no more than the 
        Minnesota municipal board could have charged if the matter had 
        been heard and decided by the board.  Costs that exceed what the 
        municipal board could have charged must be paid by the office of 
        strategic and long-range planning. 
           Presented to the governor April 25, 2000 
           Signed by the governor April 26, 2000, 2:37 p.m.