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Key: (1) language to be deleted (2) new language

CHAPTER 135--H.F.No. 1738
An act
relating to local government; providing for detachment from a
municipality;amending Minnesota Statutes 2010, section 414.06, subdivisions 1,
2, 3, by adding subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 414.06, subdivision 1, is amended to read:
    Subdivision 1. Initiating the proceeding. Property which is situated within a
municipality and abutting the municipal boundary, rural in character and not developed
for urban residential, commercial, or industrial purposes may be detached from the
municipality according to the following procedure. The proceeding may be initiated by
submitting to the chief administrative law judge a resolution of the municipality to which
the land is attached or by submitting to the chief administrative law judge a petition of all
of the property owners of the land to be detached if the area is less than 40 acres or of 75
percent of the property owners if over 40 acres. The petition or resolution shall set forth
the boundaries and the area of the land to be detached, the number and character of the
buildings, the resident population, and the municipal improvements, if any, in the area, and
a statement of the reasons the petitioners or the municipality is seeking the detachment. In
addition, the petitioners shall summarize what, if any, efforts were undertaken prior to
filing the resolution or petition to resolve the issues forming the basis for the resolution
or petition. If a petition is submitted without a resolution from the city, the petitioners
shall also provide a copy of the petition to the city from which the land may be detached,
and if the petition includes land for which a property owner has not signed the petition,
to each property owner subject to the petition who has not signed the petition. A copy
must also be mailed or otherwise delivered to the following parties: (1) the clerk of the
town to which the property would be attached if the detachment is granted; (2) the clerk
of any other abutting town or city; and (3) to the county recorder in the county in which
the land is located.

    Sec. 2. Minnesota Statutes 2010, section 414.06, is amended by adding a subdivision
to read:
    Subd. 1a. Town options. Upon receipt of the notice provided in subdivision 1, the
town board of the town to which the land is proposed to be attached may submit to the
chief administrative law judge a resolution stating that the town board supports, opposes,
or is neutral to the petition. The failure to submit a resolution before any hearing required
under this section must be deemed a position of neutrality. If the town submits a resolution
of support for a petition opposed by the municipality from which the land is proposed to
be detached, or a resolution in opposition to a petition supported by a resolution of the
municipality, the town becomes a party to the hearing required under this section and is
subject to the distribution of costs as provided in subdivision 7.

    Sec. 3. Minnesota Statutes 2010, section 414.06, subdivision 2, is amended to read:
    Subd. 2. Hearing, if needed. If both a resolution of support from the municipality
and a petition by all the property owners are submitted, and no resolution of opposition
has been received from a town as provided in subdivision 1a, no hearing is necessary
and the chief administrative law judge shall grant the petition. If both the municipality
and town submit a resolution opposing the petition, a hearing must not be held and the
chief administrative law judge shall deny the petition. In any other case, upon receipt of
a petition or resolution, the chief administrative law judge shall designate a time and
place for a hearing in accordance with section 414.09, except that instead of the meetings
otherwise required under section 414.01, subdivision 16, the chief administrative law
judge shall order the parties to participate in a mediation session. The mediator must be on
a list of mediators approved by the Office of Administrative Hearings, unless the parties
stipulate to a mediator not on the list. The cost of the mediation must be apportioned
as provided for in subdivision 7.

    Sec. 4. Minnesota Statutes 2010, section 414.06, subdivision 3, is amended to read:
    Subd. 3. Order. Upon completion of the hearing, the chief administrative law
judge may order the detachment on finding that the requisite number of property owners
have signed the petition if initiated by the property owners, that the property is rural in
character and not developed for urban residential, commercial or industrial purposes, that
the property is within the boundaries of the municipality and abuts a boundary, that the
detachment would not unreasonably affect the symmetry of the detaching municipality,
and that the land is not needed for reasonably anticipated future development. In
making the findings, the chief administrative law judge shall consider all applicable
comprehensive plans, land use regulations, and land use maps of the affected municipality,
town, and county that have been adopted at the time the petition was submitted. The
chief administrative law judge may deny the detachment on finding that the remainder
of the municipality cannot continue to carry on the functions of government without
undue hardship. The chief administrative law judge may decrease the area of property
to be detached and may include only a part of the proposed area to be detached. If the
tract abuts more than one township town, it shall become a part of each township town,
being divided by projecting through it the boundary line between the townships towns.
The detached area may be relieved of the primary responsibility for existing indebtedness
of the municipality and be required to assume the indebtedness of the township town of
which it becomes a part, in such proportion as the chief administrative law judge shall
deem just and equitable having in view the amount of taxes due and delinquent and the
indebtedness of each township town and the municipality affected, if any, and for what
purpose the same was incurred, all in relation to the benefit inuring to the detached area as
a result of the indebtedness and the last net tax capacity of the taxable property in each
township town and municipality.

    Sec. 5. Minnesota Statutes 2010, section 414.06, is amended by adding a subdivision
to read:
    Subd. 7. Costs. Notwithstanding the provisions of section 414.067, the chief
administrative law judge shall apportion the costs of the mediation and hearing in an
equitable manner, but unless the chief administrative law judge makes specific findings
as to why a party shall be responsible for a greater share, the petitioning landowners are
responsible for at least 50 percent of the total costs.
Presented to the governor March 20, 2012
Signed by the governor March 20, 2012, 3:36 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569