1.1                          A bill for an act
  1.2             relating to annexation; providing for annexation 
  1.3             election; modifying procedures for orderly annexation; 
  1.4             modifying conditions for annexation by ordinance; 
  1.5             providing for joint planning; amending Minnesota 
  1.6             Statutes 1994, sections 414.031, by adding a 
  1.7             subdivision; 414.0325, subdivision 1; 414.033, 
  1.8             subdivisions 2, 2a, and by adding a subdivision; 
  1.9             proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 414. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1994, section 414.031, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 5a.  [ANNEXATION ELECTION.] If the proceeding for 
  1.15  annexation has been initiated by the petition of a majority of 
  1.16  property owners within the area to be annexed or if the board 
  1.17  has assumed jurisdiction under subdivision 1, clause (d), and 
  1.18  orders that the entire town named in the resolution be annexed 
  1.19  to the city named in the resolution, no referendum is required.  
  1.20  In all other instances, the order of the board shall fix a day, 
  1.21  not less than 20 days nor more than 90 days, after the entry of 
  1.22  the order, when an election shall be held at a place designated 
  1.23  by the board within the area that is determined by the board to 
  1.24  be primarily and substantially interested in or affected by the 
  1.25  board order.  The executive director shall cause a copy of the 
  1.26  order affirming the petition, including the notice of the 
  1.27  election, to be posted not less than 20 days before the election 
  1.28  in three public places in the area, and shall give two weeks' 
  2.1   published notice of the election in a qualified newspaper of 
  2.2   general circulation in the area.  The board shall appoint the 
  2.3   necessary election judges from voters resident in the area and 
  2.4   shall supervise them in their duties.  The board shall designate 
  2.5   the polling place or places.  The polls shall be open at least 
  2.6   13 hours and until at least 8:00 p.m.  The judges shall conduct 
  2.7   the election so far as practicable in accordance with the laws 
  2.8   regulating special elections.  Only voters residing within the 
  2.9   area primarily and substantially interested in or affected by 
  2.10  the board's order shall be entitled to vote.  The ballot shall 
  2.11  bear the words "For Annexation" and "Against Annexation" with a 
  2.12  square before each of the phrases in one of which the voter 
  2.13  shall make a cross to express a choice.  The ballots and 
  2.14  election supplies shall be provided and the election judges 
  2.15  shall be paid by the petitioners or the annexing municipality.  
  2.16  Immediately upon completion of the counting of the ballots, the 
  2.17  judges of the election shall make a signed and verified 
  2.18  certificate declaring the time and place of holding the 
  2.19  election, that they have canvassed the ballots cast, and the 
  2.20  number cast both for and against the proposition, and they shall 
  2.21  then file the certificate with the executive director of the 
  2.22  board.  If the certificate shows the majority of the votes cast 
  2.23  were "For Annexation," the board's order shall be effective in 
  2.24  accordance with subdivision 6.  If a majority of votes were cast 
  2.25  "Against Annexation," the board shall not issue an order for 
  2.26  annexation.  If the annexation is denied, or if it is defeated 
  2.27  in the referendum, no proceeding for the annexation of 
  2.28  substantially the same area may be initiated within two years 
  2.29  from the date of the board's order, unless the new proceeding is 
  2.30  initiated by a majority of the area's property owners and the 
  2.31  petition is supported by abutting towns and municipalities.  The 
  2.32  executive director shall, upon receipt of the certificate, 
  2.33  notify all parties of record of the election results. 
  2.34     Sec. 2.  Minnesota Statutes 1994, section 414.0325, 
  2.35  subdivision 1, is amended to read: 
  2.36     Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
  3.1   townships and one or more municipalities, by joint resolution, 
  3.2   may designate an unincorporated area as in need of orderly 
  3.3   annexation and may confer jurisdiction on the board over 
  3.4   annexations in the designated area and over the various 
  3.5   provisions in said agreement by submission of said joint 
  3.6   resolution to the executive director.  The resolution shall 
  3.7   include a description of the designated area.  Thereafter, an 
  3.8   annexation of any part of the designated area may be initiated 
  3.9   by submitting to the executive director a resolution of any 
  3.10  signatory to the joint resolution or by the board of its own 
  3.11  motion.  ~~Whenever the pollution control agency or other state~~ 
  3.12  ~~agency pursuant to sections 115.03, 115.071, 115.49, or any law~~ 
  3.13  ~~giving a state agency similar powers, orders a municipality to~~ 
  3.14  ~~extend a municipal service to a designated unincorporated area,~~ 
  3.15  ~~such an order will confer jurisdiction on the Minnesota~~ 
  3.16  ~~municipal board to consider designation of the area for orderly~~ 
  3.17  ~~annexation.~~  
  3.18     If a joint resolution designates an area as in need of 
  3.19  orderly annexation and states that no alteration of its stated 
  3.20  boundaries is appropriate, the board may review and comment, but 
  3.21  may not alter the boundaries.  
  3.22     If a joint resolution designates an area as in need of 
  3.23  orderly annexation, provides for the conditions for its 
  3.24  annexation, and states that no consideration by the board is 
  3.25  necessary, the board may review and comment, but shall, within 
  3.26  30 days, order the annexation in accordance with the terms of 
  3.27  the resolution. 
  3.28     Sec. 3.  Minnesota Statutes 1994, section 414.033, 
  3.29  subdivision 2, is amended to read: 
  3.30     Subd. 2.  A municipal council may by ordinance declare land 
  3.31  annexed to the municipality and any such land is deemed to be 
  3.32  urban or suburban in character or about to become so if: 
  3.33     (1) the land is owned by the municipality; 
  3.34     (2) the land is completely surrounded by land within the 
  3.35  municipal limits; 
  3.36     (3) the land abuts the municipality and the area to be 
  4.1   annexed is 60 acres or less, and the area to be annexed is not 
  4.2   presently served by public sewer facilities or public sewer 
  4.3   facilities are not otherwise available, and the municipality 
  4.4   receives a petition for annexation from all the property owners 
  4.5   of the land, and the municipality has public sewer facilities 
  4.6   with available capacity to service the area and agrees to extend 
  4.7   its sewer lines to the area within 15 months from the effective 
  4.8   date of the annexation; or 
  4.9      (4) the land has been approved after August 1, 1995, by a 
  4.10  preliminary plat or final plat for subdivision to provide 
  4.11  residential lots that average 21,780 square feet or less in area 
  4.12  and the land is located within two miles of the municipal 
  4.13  limits, and the municipality has public sewer facilities with 
  4.14  available capacity to service the area and agrees to extend its 
  4.15  sewer lines to the area within 15 months from the effective date 
  4.16  of the annexation. 
  4.17     Sec. 4.  Minnesota Statutes 1994, section 414.033, 
  4.18  subdivision 2a, is amended to read: 
  4.19     Subd. 2a.  [MUNICIPALITY MAY ANNEX.] Notwithstanding the 
  4.20  abutting requirement of subdivision 1, if land is owned by a 
  4.21  municipality or if all of the landowners petition for 
  4.22  annexation, and the land is within an existing orderly 
  4.23  annexation area as provided by section 414.0325, then the 
  4.24  municipality may declare the land annexed, provided that all 
  4.25  conditions of annexation contained in the existing orderly 
  4.26  annexation agreement have been met.  This municipal action ~~does~~ 
  4.27  ~~not otherwise affect the other~~ may not contradict nor otherwise 
  4.28  disrupt the terms and conditions of existing orderly annexation 
  4.29  agreements entered into pursuant to section 414.0325.  This 
  4.30  subdivision applies only to orderly annexation agreements 
  4.31  approved by the board after the effective date of this section. 
  4.32     Sec. 5.  Minnesota Statutes 1994, section 414.033, is 
  4.33  amended by adding a subdivision to read: 
  4.34     Subd. 2c.  [MUNICIPAL FINDINGS.] In arriving at its 
  4.35  decision, the municipality shall consider the following factors: 
  4.36     (1) present population, past population growth, and 
  5.1   projected population of the property proposed for annexation and 
  5.2   the annexing municipality; 
  5.3      (2) quantity of land within the property proposed for 
  5.4   annexation and the annexing municipality and the natural terrain 
  5.5   including general topography, major watershed, soil conditions, 
  5.6   and natural features including rivers, lakes, and major bluffs; 
  5.7      (3) degree of contiguity of the boundaries between the 
  5.8   annexing municipality and the property proposed for annexation; 
  5.9      (4) present pattern of physical development of the property 
  5.10  proposed for annexation and the annexing municipality including 
  5.11  residential, industrial, commercial, agricultural, and 
  5.12  institutional land uses, and the present transportation network 
  5.13  and potential transportation issues, including proposed highway 
  5.14  development; 
  5.15     (5) land use controls and planning presently being utilized 
  5.16  in the annexing municipality and the property proposed for 
  5.17  annexation, including comprehensive plans for development in the 
  5.18  area and plans and policies of the metropolitan council.  If 
  5.19  there is an inconsistency between the proposed development and 
  5.20  the land use planning ordinance in force, the reason for the 
  5.21  inconsistency must be stated; 
  5.22     (6) present governmental services being provided in the 
  5.23  annexing municipality and the property proposed for annexation, 
  5.24  including water and sewer service, fire rating and protection, 
  5.25  police protection, street improvements and maintenance, 
  5.26  administrative services, and recreational facilities; 
  5.27     (7) existing or potential problems of environmental 
  5.28  pollution and the need for additional services to resolve these 
  5.29  problems; 
  5.30     (8) plans and programs of the annexing municipality for 
  5.31  providing needed governmental services to the property proposed 
  5.32  for annexation; 
  5.33     (9) fiscal date of the annexing municipality and the 
  5.34  property proposed for annexation, including net tax capacity and 
  5.35  the present bonded indebtedness, and the local tax rates of the 
  5.36  county, school districts, and township; 
  6.1      (10) relationship and effect of the proposed annexation on 
  6.2   communities adjacent to the area and on school districts within 
  6.3   and adjacent to the area; 
  6.4      (11) adequacy of town government to deliver necessary 
  6.5   services to the property proposed for annexation; and 
  6.6      (12) if only a part of a township is annexed, the ability 
  6.7   of the remainder of the township to continue as a separate 
  6.8   political subdivision. 
  6.9      Based on these factors, the municipality may annex the land 
  6.10  by ordinance if it finds that the area proposed for annexation 
  6.11  (i) is now or is about to become urban or suburban in character 
  6.12  and that the municipality has sewage treatment capacity and is 
  6.13  capable of providing public sewer facilities within 15 months of 
  6.14  the annexation, or (ii) if it is required to annex the land to 
  6.15  protect the public health, safety, and welfare, as determined by 
  6.16  the appropriate state agency having the authority to make such 
  6.17  determination.  The municipality shall deny the annexation if it 
  6.18  conflicts with any provision of a joint agreement between the 
  6.19  annexing municipality and the township.  In all cases, the 
  6.20  municipality shall set forth the factors which are the basis for 
  6.21  the decision. 
  6.22     Sec. 6.  [414.037] [JOINT PLANNING; SUBDIVISION 
  6.23  REGULATIONS.] 
  6.24     Subdivision 1.  [LOCAL GOVERNMENT UNIT DEFINED.] For 
  6.25  purposes of this section, "local government unit" means a 
  6.26  statutory or home rule charter city, town, or county. 
  6.27     Subd. 2.  [DESIGNATED AREA DEFINED.] For purposes of this 
  6.28  section, "designated area" means an area that may encompass, 
  6.29  from the corporate boundaries of the municipality, up to two 
  6.30  miles within the participating town and up to one-quarter mile 
  6.31  within the participating municipality. 
  6.32     Subd. 3.  [JOINT ADVISORY BOARD CREATION.] Local government 
  6.33  units may, by joint resolution, establish a joint advisory 
  6.34  board.  The resolution shall describe the boundaries of the 
  6.35  designated area and shall be delivered to the county auditor of 
  6.36  the county containing the affected territory.  The number of 
  7.1   advisory board members shall be determined and appointed by the 
  7.2   governing bodies participating in the agreement.  Each local 
  7.3   government unit shall have an equal number of members.  The 
  7.4   advisory board shall review existing and future land use issues 
  7.5   affecting the designated area and may make recommendations to 
  7.6   the governing bodies and planning commissions within the 
  7.7   designated area. 
  7.8      Subd. 4.  [JOINT PLANNING BOARD; CREATION.] The governing 
  7.9   bodies of all the local government units on the joint advisory 
  7.10  board may, by joint resolution, establish a joint planning 
  7.11  board.  The resolution shall describe the boundaries of the 
  7.12  designated area and shall be delivered to the county auditor of 
  7.13  the county containing the affected territory.  Representation on 
  7.14  the joint planning board shall be the same as the joint advisory 
  7.15  board.  Upon creation of a joint planning board, any joint 
  7.16  advisory boards are terminated. 
  7.17     Subd. 5.  [GENERAL AUTHORITY.] The joint planning board 
  7.18  shall serve as the planning commission within the designated 
  7.19  area for the purposes of sections 462.351 to 462.364 and chapter 
  7.20  394.  Recommendations concerning the adoption or amendment of 
  7.21  any comprehensive plan, official control, or zoning ordinance 
  7.22  shall be by resolution of a majority of all members of the 
  7.23  planning board.  All planning board actions and recommendations 
  7.24  shall be acted upon by each local government unit represented on 
  7.25  the planning board within 60 days of receipt of the resolution.  
  7.26  To be effective, recommendations concerning plans or official 
  7.27  controls must be approved by each local government unit 
  7.28  represented on the board. 
  7.29     Subd. 6.  [STAFF.] Staff for the joint planning board shall 
  7.30  be provided by the municipality unless otherwise agreed by the 
  7.31  local government units.  The planning board may employ staff to 
  7.32  assist in carrying out the duties of the board. 
  7.33     Subd. 7.  [JOINT PLANNING; SUBDIVISION 
  7.34  REGULATIONS.] Notwithstanding section 462.358, a municipality 
  7.35  shall not extend the application of its subdivision regulations 
  7.36  into a designated territory unless such extension is approved by 
  8.1   the joint planning board.  If the municipality had extended its 
  8.2   subdivision regulations before the planning board was created, 
  8.3   the regulations shall apply until replaced upon a recommendation 
  8.4   from the planning board. 
  8.5      Subd. 8.  [DISSOLUTION.] A joint advisory board or a joint 
  8.6   planning board may be dissolved by a joint resolution adopted by 
  8.7   two-thirds of the local government units represented on the 
  8.8   board.  The resolution shall be delivered to the county auditor 
  8.9   of the county containing the affected territory.