1.1                          A bill for an act 
  1.2             relating to municipalities; clarifying the use of 
  1.3             alternative dispute resolution in certain proceedings; 
  1.4             amending Minnesota Statutes 1999 Supplement, section 
  1.5             414.12; repealing Minnesota Statutes 1998, section 
  1.6             414.10. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   414.12, is amended to read: 
  1.10     414.12 [DIRECTOR'S POWERS.] 
  1.11     Subdivision 1.  [ALTERNATIVE DISPUTE RESOLUTION.] 
  1.12  Notwithstanding anything to the contrary in sections 414.01 to 
  1.13  414.11, the director of the office of strategic and long-range 
  1.14  planning, upon consultation with affected parties and 
  1.15  considering the procedures and principles established in 
  1.16  sections 414.01 to 414.11, and Laws 1997, chapter 202, article 
  1.17  4, sections 1 to 13, may require that disputes over proposed 
  1.18  boundary adjustments be resolved by means of alternative dispute 
  1.19  resolution processes in place of hearings that would otherwise 
  1.20  be required pursuant to sections 414.01 to 414.09, including 
  1.21  those provided in chapter 14, in the execution of the office's 
  1.22  duties under this chapter.  Alternative dispute resolution 
  1.23  processes that may be required include: 
  1.24     (1) the contested case procedures provided by sections 
  1.25  14.57 to 14.62; 
  1.26     (2) the mediation and arbitration process provided by 
  2.1   sections 572A.015 to 572A.03; or 
  2.2      (3) another mediation and arbitration process ordered by 
  2.3   the director.  
  2.4      Subd. 2.  [DELEGATION OF AUTHORITY.] The director may, with 
  2.5   the agreement of the chief administrative law judge, delegate to 
  2.6   the office of administrative hearings, in any individual case or 
  2.7   group of cases, the director's authority and responsibility to 
  2.8   conduct hearings and issue final orders under sections 414.01 to 
  2.9   414.09.  
  2.10     Subd. 3.  [COST OF PROCEEDINGS.] The parties to any matter 
  2.11  directed to alternative dispute resolution under subdivision 1 
  2.12  or delegated to the office of administrative hearings under 
  2.13  subdivision 2 must pay the costs of the alternative dispute 
  2.14  resolution process or hearing in the proportions that they agree 
  2.15  to.  Notwithstanding section 14.53 or other law, the office of 
  2.16  strategic and long-range planning is not liable for the costs.  
  2.17  If the parties do not agree to a division of the costs before 
  2.18  the commencement of mediation, arbitration, or hearing, the 
  2.19  costs must be allocated on an equitable basis by the mediator, 
  2.20  arbitrator, or chief administrative law judge.  
  2.21     Subd. 4.  [PARTIES.] In this section, "party" means: 
  2.22     (1) a property owner, group of property owners, 
  2.23  municipality, or township that files an initiating document or 
  2.24  timely objection under this chapter; 
  2.25     (2) the municipality or township within which the subject 
  2.26  area is located; 
  2.27     (3) a municipality abutting the subject area; and 
  2.28     (4) any other person, group of persons, or governmental 
  2.29  agency residing in, owning property in, or exercising 
  2.30  jurisdiction over the subject area that files with the director 
  2.31  a notice of appearance within ... days of publication of the 
  2.32  notice required by section 414.09. 
  2.33     Sec. 2.  [REPEALER.] 
  2.34     Minnesota Statutes 1998, section 414.10, is repealed. 
  2.35     Sec. 3.  [EFFECTIVE DATE.] 
  2.36     Section 1 is effective retroactive to June 1, 1999, and 
  3.1   applies to all matters pending on or commenced on or after the 
  3.2   effective date.