1.1                          A bill for an act 
  1.2             relating to local government; transferring authority 
  1.3             for incorporations, detachments, and annexations to 
  1.4             the office of strategic and long-range planning and 
  1.5             the office of administrative hearings; appropriating 
  1.6             money; amending Minnesota Statutes 1994, sections 
  1.7             14.03, subdivision 2; 414.01, subdivisions 1, 14, 15, 
  1.8             16, 17, and by adding a subdivision; 414.011, 
  1.9             subdivisions 7 and 8; 414.012; 414.02; 414.031; 
  1.10            414.0325; 414.033; 414.035; 414.036; 414.041; 414.051; 
  1.11            414.06; 414.061; 414.063; 414.067; 414.07; and 414.09; 
  1.12            repealing Minnesota Statutes 1994, sections 414.01, 
  1.13            subdivisions 2, 3, 3a, 4, 5, 6a, 7a, 8, 10, 11, and 
  1.14            12; and 414.08. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  [TRANSFER OF AUTHORITY AND DUTIES.] 
  1.17     The authority and duties of the Minnesota municipal board 
  1.18  are transferred to the office of strategic and long-range 
  1.19  planning and to the office of administrative hearings, as 
  1.20  provided in sections 2 to 25.  The transfers are subject to 
  1.21  Minnesota Statutes, section 15.039, with the exception of 
  1.22  subdivision 7, which does not apply. 
  1.23     Sec. 2.  Minnesota Statutes 1994, section 14.03, 
  1.24  subdivision 2, is amended to read: 
  1.25     Subd. 2.  [CONTESTED CASE PROCEDURES.] The contested case 
  1.26  procedures of the administrative procedure act provided in 
  1.27  sections 14.57 to 14.69 do not apply to (a) ~~the Minnesota~~ 
  1.28  ~~municipal board, (b)~~ the commissioner of corrections, ~~(c)~~ (b) 
  1.29  the unemployment insurance program and the social security 
  1.30  disability determination program in the department of economic 
  2.1   security, ~~(d)~~ (c) the commissioner of mediation services, 
  2.2   ~~(e)~~ (d) the workers' compensation division in the department of 
  2.3   labor and industry, ~~(f)~~ (e) the workers' compensation court of 
  2.4   appeals, or ~~(g)~~ (f) the board of pardons.  
  2.5      Sec. 3.  Minnesota Statutes 1994, section 414.01, 
  2.6   subdivision 1, is amended to read: 
  2.7      Subdivision 1.  ~~A board to be known as the Minnesota~~ 
  2.8   ~~municipal board is hereby created to conduct proceedings and~~ 
  2.9   ~~issue orders for the creation of a municipality, the combination~~ 
  2.10  ~~of two or more governmental units, or the alteration of a~~ 
  2.11  ~~municipal boundary.~~ 
  2.12     The legislature finds that:  (1) sound urban development 
  2.13  and preservation of agricultural land and open spaces through 
  2.14  land use planning is essential to the continued economic growth 
  2.15  of this state; (2) municipal government most efficiently 
  2.16  provides governmental services in areas intensively developed 
  2.17  for residential, commercial, industrial, and governmental 
  2.18  purposes; and township government most efficiently provides 
  2.19  governmental services in areas used or developed for 
  2.20  agricultural, open space, and rural residential purposes; (3) 
  2.21  the public interest requires that municipalities be formed when 
  2.22  there exists or will likely exist the necessary resources to 
  2.23  provide for their economical and efficient operation; (4) 
  2.24  annexation to existing municipalities of unincorporated areas 
  2.25  unable to supply municipal services should be facilitated; and, 
  2.26  (5) the consolidation of municipalities should be 
  2.27  encouraged.  ~~It is~~ The ~~purpose~~ purposes of this chapter ~~to~~ 
  2.28  ~~empower the Minnesota municipal board to~~ are as follows:  (i) 
  2.29  promote and regulate development of municipalities to provide 
  2.30  for the extension of municipal government to areas which are 
  2.31  developed or are in the process of being developed for intensive 
  2.32  use for residential, commercial, industrial, institutional, and 
  2.33  governmental purposes or are needed for such purposes; ~~and to~~ 
  2.34  (ii) protect the stability of unincorporated areas which are 
  2.35  used or developed for agricultural, open space, and rural 
  2.36  residential purposes and are not presently needed for more 
  3.1   intensive uses; and ~~to~~ (iii) protect the integrity of land use 
  3.2   planning in municipalities and unincorporated areas so that the 
  3.3   public interest in efficient local government will be properly 
  3.4   recognized and served. 
  3.5      Sec. 4.  Minnesota Statutes 1994, section 414.01, is 
  3.6   amended by adding a subdivision to read: 
  3.7      Subd. 12a.  [ORDERS.] If no objection is made to the office 
  3.8   of strategic and long-range planning to a proposed detachment or 
  3.9   annexation under this chapter within 30 days from the office's 
  3.10  receipt of a petition or resolution, the office shall order 
  3.11  action as requested in the petition or resolution.  If an 
  3.12  objection is made, or if a matter has been referred pursuant to 
  3.13  law to the office of administrative hearings, the matter shall 
  3.14  be determined by order of an administrative law judge.  The 
  3.15  order of the administrative law judge is final, subject to 
  3.16  judicial review as provided in section 414.07.  The office of 
  3.17  administrative hearings shall, when hearing a matter under this 
  3.18  chapter, proceed as in a contested case subject to chapter 14, 
  3.19  except as is necessary to conform to the requirements of this 
  3.20  chapter. 
  3.21     Sec. 5.  Minnesota Statutes 1994, section 414.01, 
  3.22  subdivision 14, is amended to read: 
  3.23     Subd. 14.  When ~~a board~~ an order enlarges or diminishes the 
  3.24  area of an existing municipality or town, the population of the 
  3.25  annexed or detached area shall be as found ~~by the board~~ at ~~its~~ 
  3.26  the hearing or, in cases in which no hearing ~~by the board~~ for 
  3.27  the boundary change is required, as stated in the resolution or 
  3.28  ordinance.  The effective date of the population change shall be 
  3.29  the same as the effective date of the order whether or not the 
  3.30  order is from a hearing or from the approval of an annexation 
  3.31  resolution or ordinance.  The ~~board~~ office of strategic and 
  3.32  long-range planning or the administrative law judge shall 
  3.33  communicate ~~its~~ the population finding to the state demographer 
  3.34  who shall incorporate that data into the population estimate for 
  3.35  the municipality or town.  When a new municipality is created by 
  3.36  an order ~~of the board~~, the municipality shall request a 
  4.1   separation census from the United States bureau of the census 
  4.2   and bear any costs incurred.  
  4.3      Sec. 6.  Minnesota Statutes 1994, section 414.01, 
  4.4   subdivision 15, is amended to read: 
  4.5      Subd. 15.  When ~~a board~~ an order enlarges an existing 
  4.6   municipality or creates a new municipality, the ~~board~~ office of 
  4.7   strategic and long-range planning or the administrative law 
  4.8   judge may indicate in ~~its~~ the order the estimated increased 
  4.9   costs to the municipality as the result of the boundary 
  4.10  adjustment, and the time period that the municipality would be 
  4.11  allowed a levy for these increased costs. 
  4.12     Sec. 7.  Minnesota Statutes 1994, section 414.01, 
  4.13  subdivision 16, is amended to read: 
  4.14     Subd. 16.  In a proceeding ~~before the board~~, the ~~board~~ 
  4.15  administrative law judge may require that representatives from 
  4.16  the involved city, town, and county or other entity meet 
  4.17  together to discuss the resolution of issues raised at the 
  4.18  hearing ~~before the board~~ and other issues of mutual concern.  
  4.19  The ~~board~~ judge may require that the parties meet at least three 
  4.20  times during a 60-day period.  The parties shall designate a 
  4.21  person to report to the ~~board~~ judge on the results of the 
  4.22  meetings immediately after the last meeting. 
  4.23     Sec. 8.  Minnesota Statutes 1994, section 414.01, 
  4.24  subdivision 17, is amended to read: 
  4.25     Subd. 17.  [DATA FROM STATE AGENCIES.] The ~~board~~ office of 
  4.26  strategic and long-range planning or the office of 
  4.27  administrative hearings may request information from any state 
  4.28  department or agency in order to assist ~~it to carry out its~~ an 
  4.29  office in the performance of its duties.  The department or 
  4.30  agency shall promptly furnish the requested information to 
  4.31  the ~~board~~ requesting office. 
  4.32     Sec. 9.  Minnesota Statutes 1994, section 414.011, 
  4.33  subdivision 7, is amended to read: 
  4.34     Subd. 7.  "Boundary adjustment" means any proceeding ~~by the~~ 
  4.35  ~~municipal board~~ authorized by this chapter. 
  4.36     Sec. 10.  Minnesota Statutes 1994, section 414.011, 
  5.1   subdivision 8, is amended to read: 
  5.2      Subd. 8.  "Meetings" and "hearings" includes, but is not 
  5.3   limited to, ~~board~~ deliberations by electronic media. 
  5.4      Sec. 11.  Minnesota Statutes 1994, section 414.012, is 
  5.5   amended to read: 
  5.6      414.012 [MAPS.] 
  5.7      Subdivision 1.  [CORPORATE BOUNDARY MAP.] A municipality 
  5.8   initiating any boundary adjustment authorized by this chapter 
  5.9   shall file with the ~~municipal board~~ office of strategic and 
  5.10  long-range planning a corporate boundary map.  Any proposed 
  5.11  boundary adjustment shall be delineated on a copy of the 
  5.12  corporate boundary map. 
  5.13     Subd. 2.  [PLAT MAPS.] Any party initiating a boundary 
  5.14  adjustment, which includes platted land, shall file with the 
  5.15  ~~municipal board~~ office maps which are necessary to support and 
  5.16  identify the land description.  The maps shall include copies of 
  5.17  plats. 
  5.18     Sec. 12.  Minnesota Statutes 1994, section 414.02, is 
  5.19  amended to read: 
  5.20     414.02 [MUNICIPAL INCORPORATION.] 
  5.21     Subdivision 1.  [INITIATING THE INCORPORATION PROCEEDINGS.] 
  5.22  This section provides the exclusive method of incorporating a 
  5.23  municipality in Minnesota.  Proceedings for incorporation of a 
  5.24  municipality may be initiated by petition of 100 or more 
  5.25  property owners or by resolution of the town board within an 
  5.26  area which is not included within the limits of any incorporated 
  5.27  municipality and which area includes land that has been platted 
  5.28  into lots and blocks in the manner provided by law.  The 
  5.29  petition or resolution shall be submitted to the ~~executive~~ 
  5.30  ~~director~~ office of strategic and long-range planning and shall 
  5.31  state the proposed name of the municipality, the names of all 
  5.32  parties entitled to mailed notice under section 414.09, the 
  5.33  reason for requesting incorporation, and shall include a 
  5.34  proposed corporate boundary map. 
  5.35     Subd. 2.  [~~BOARD'S~~ HEARING AND NOTICE.] Upon receipt of a 
  5.36  petition or resolution made pursuant to subdivision 1, 
  6.1   the ~~executive director of the board~~ office shall inform the 
  6.2   office of administrative hearings which shall designate a time 
  6.3   and place for a hearing in accordance with section 414.09. 
  6.4      Subd. 3.  [~~BOARD'S~~ ORDER.] In arriving at ~~its~~ a decision, 
  6.5   the ~~board~~ administrative law judge shall consider the following 
  6.6   factors: 
  6.7      (a) Present population, past population growth and 
  6.8   projected population for the area; 
  6.9      (b) Quantity of land, both platted and unplatted, within 
  6.10  the area proposed for incorporation; the natural terrain of the 
  6.11  area including general topography, major watersheds, soil 
  6.12  conditions and such natural features as rivers, lakes and major 
  6.13  bluffs; 
  6.14     (c) Present pattern of physical development in the area 
  6.15  including residential, industrial, commercial, agricultural and 
  6.16  institutional land uses; the present transportation network and 
  6.17  potential transportation issues, including proposed highway 
  6.18  development; 
  6.19     (d) Land use controls and planning presently being utilized 
  6.20  in the area, including comprehensive plans for development in 
  6.21  the area and policies of the metropolitan council.  If there is 
  6.22  an inconsistency between the proposed development and the land 
  6.23  use planning ordinance in force, the reason for the 
  6.24  inconsistency; 
  6.25     (e) Present governmental services being provided to the 
  6.26  area, including water and sewer service, fire rating and 
  6.27  protection, police protection, street improvements and 
  6.28  maintenance, administrative services, and recreational 
  6.29  facilities; 
  6.30     (f) Existing or potential problems of environmental 
  6.31  pollution and the need for additional services to resolve these 
  6.32  problems; 
  6.33     (g) Fiscal data of the area, including the net tax capacity 
  6.34  of both platted and unplatted lands and the division between 
  6.35  homestead and nonhomestead property, and the present bonded 
  6.36  indebtedness; and the local tax rates of the county, school 
  7.1   district, and township; 
  7.2      (h) Relationship and effect of the proposed incorporation 
  7.3   on communities adjacent to the area and on school districts 
  7.4   within and adjacent to the area; 
  7.5      (i) Adequacy of town government to deliver services to the 
  7.6   area; and 
  7.7      (j) Analysis of whether necessary governmental services can 
  7.8   best be provided through incorporation or annexation to an 
  7.9   adjacent municipality. 
  7.10     Based upon these factors, the ~~board may~~ judge shall order 
  7.11  the incorporation ~~if it finds~~ upon finding that (a) the property 
  7.12  to be incorporated is now, or is about to become, urban or 
  7.13  suburban in character, or (b) that the existing township form of 
  7.14  government is not adequate to protect the public health, safety, 
  7.15  and welfare, or (c) the proposed incorporation would be in the 
  7.16  best interests of the area under consideration.  The ~~board~~ judge 
  7.17  may deny the incorporation if the area, or a part thereof, would 
  7.18  be better served by annexation to an adjacent municipality. 
  7.19     The ~~board~~ judge may alter the boundaries of the proposed 
  7.20  incorporation by increasing or decreasing the area to be 
  7.21  incorporated so as to include only that property which is now, 
  7.22  or is about to become, urban or suburban in character, or may 
  7.23  exclude property that may be better served by another unit of 
  7.24  government.  In all cases, the ~~board~~ judge shall set forth the 
  7.25  factors which are the basis for the decision. 
  7.26     Notwithstanding any other provision of law to the contrary 
  7.27  relating to the number of wards which may be established, the 
  7.28  ~~board~~ judge may provide for election of council members by 
  7.29  wards, not less than three nor more than seven in number, whose 
  7.30  limits are prescribed in the ~~board~~ order upon a finding that 
  7.31  area representation is required to accord proper representation 
  7.32  in the proposed incorporated area because of uneven population 
  7.33  density in different parts thereof or the existence of 
  7.34  agricultural lands therein which are in the path of suburban 
  7.35  development, but after four years from the effective date of an 
  7.36  incorporation the council of the municipality may by resolution 
  8.1   adopted by a four-fifths vote abolish the ward system and 
  8.2   provide for the election of all council members at large as in 
  8.3   other municipalities. 
  8.4      The ~~board's~~ order for incorporation shall provide for the 
  8.5   election of municipal officers in accordance with section 
  8.6   414.09.  The plan of government shall be "Optional Plan A", 
  8.7   provided that an alternate plan may be adopted pursuant to 
  8.8   section 412.551, at any time.  The ordinances of the township in 
  8.9   which the new municipality is located shall continue in effect 
  8.10  until repealed by the governing body of the new municipality. 
  8.11     Subd. 4.  [EFFECTIVE DATE OF INCORPORATION.] The 
  8.12  incorporation shall be effective upon the election and 
  8.13  qualification of new municipal officers or on such later date as 
  8.14  is fixed by the ~~board in its~~ order. 
  8.15     Sec. 13.  Minnesota Statutes 1994, section 414.031, is 
  8.16  amended to read: 
  8.17     414.031 [ANNEXATION OF UNINCORPORATED PROPERTY TO A 
  8.18  MUNICIPALITY BY ~~BOARD~~ ORDER.] 
  8.19     Subdivision 1.  [INITIATING THE PROCEEDING.] A proceeding 
  8.20  for the annexation of unincorporated property abutting a 
  8.21  municipality may be initiated by submitting to the ~~executive~~ 
  8.22  ~~director~~ office of strategic and long-range planning and the 
  8.23  affected township one of the following: 
  8.24     (a) A resolution of the annexing municipality; 
  8.25     (b) A resolution of the township containing the area 
  8.26  proposed for annexation; 
  8.27     (c) A petition of 20 percent of the property owners or 100 
  8.28  property owners, whichever is less, in the area to be annexed; 
  8.29     (d) A resolution of the municipal council together with a 
  8.30  resolution of the township board stating their desire to have 
  8.31  the entire township annexed to the municipality. 
  8.32     The petition, or resolution shall set forth the boundaries 
  8.33  of the territory proposed for annexation, the names of all 
  8.34  parties entitled to notice under section 414.09, and the reasons 
  8.35  for requesting annexation.  If the proceeding is initiated by a 
  8.36  petition of property owners, the petition shall be accompanied 
  9.1   by a resolution of the annexing municipality supporting the 
  9.2   petition. 
  9.3      Subd. 3.  [~~BOARD'S~~ HEARING AND NOTICE.] Upon receipt of a 
  9.4   timely objection to a petition or resolution initiating an 
  9.5   annexation, the ~~executive director~~ office of strategic and 
  9.6   long-range planning shall designate a time and a place for a 
  9.7   hearing in accordance with section 414.09.  If no timely 
  9.8   objection is received, the office shall order the annexation as 
  9.9   requested by the petition or resolution. 
  9.10     Subd. 4.  [~~BOARD'S~~ ORDER.] In arriving at ~~its~~ a decision, 
  9.11  the ~~board~~ administrative law judge shall consider the following 
  9.12  factors: 
  9.13     (a) Present population, past population growth and 
  9.14  projected population of the property proposed for annexation and 
  9.15  the annexing municipality; 
  9.16     (b) Quantity of land within the property proposed for 
  9.17  annexation and the annexing municipality; and natural terrain 
  9.18  including general topography, major watersheds, soil conditions 
  9.19  and such natural features as rivers, lakes and major bluffs; 
  9.20     (c) Degree of contiguity of the boundaries between the 
  9.21  annexing municipality and the property proposed for annexation; 
  9.22     (d) Present pattern of physical development of the property 
  9.23  proposed for annexation and the annexing municipality including 
  9.24  residential, industrial, commercial, agricultural and 
  9.25  institutional land uses; the present transportation network and 
  9.26  potential transportation issues, including proposed highway 
  9.27  development; 
  9.28     (e) Land use controls and planning presently being utilized 
  9.29  in the annexing municipality and the property proposed for 
  9.30  annexation, including comprehensive plans for development in the 
  9.31  area and plans and policies of the metropolitan council.  If 
  9.32  there is an inconsistency between the proposed development and 
  9.33  the land use planning ordinance in force, the reason for the 
  9.34  inconsistency; 
  9.35     (f) Present governmental services being provided in the 
  9.36  annexing municipality and the property proposed for annexation, 
 10.1   including water and sewer service, fire rating and protection, 
 10.2   police protection, street improvements and maintenance, 
 10.3   administrative services, and recreational facilities; 
 10.4      (g) Existing or potential problems of environmental 
 10.5   pollution and the need for additional services to resolve these 
 10.6   problems; 
 10.7      (h) Plans and programs by the annexing municipality for 
 10.8   providing needed governmental services to the property proposed 
 10.9   for annexation; 
 10.10     (i) Fiscal data of the annexing municipality and the 
 10.11  property proposed for annexation, including net tax capacity and 
 10.12  the present bonded indebtedness, and the local tax rates of the 
 10.13  county, school district, and township; 
 10.14     (j) Relationship and effect of the proposed annexation on 
 10.15  communities adjacent to the area and on school districts within 
 10.16  and adjacent to the area; 
 10.17     (k) Adequacy of town government to deliver services to the 
 10.18  property proposed for annexation; 
 10.19     (l) Analysis of whether necessary governmental services can 
 10.20  best be provided through incorporation or annexation to an 
 10.21  adjacent municipality; and 
 10.22     (m) If only a part of a township is annexed, the ability of 
 10.23  the remainder of the township to continue or the feasibility of 
 10.24  it being incorporated separately or being annexed to another 
 10.25  municipality. 
 10.26     Based upon these factors, the ~~board may~~ judge shall order 
 10.27  the annexation upon finding that (a) ~~if it finds that~~ the 
 10.28  property proposed for annexation is now, or is about to become, 
 10.29  urban or suburban in character, or (b) ~~if it finds that~~ 
 10.30  municipal government in the area proposed for annexation is 
 10.31  required to protect the public health, safety, and welfare, or 
 10.32  (c) ~~if it finds that~~ the annexation would be in the best 
 10.33  interest of the property proposed for annexation.  ~~If only a~~ 
 10.34  ~~part of a township is to be annexed, the board shall consider~~ 
 10.35  ~~whether the remainder of the township can continue to carry on~~ 
 10.36  ~~the functions of government without undue hardship.  The board~~ 
 11.1   ~~shall deny the annexation if it finds that the increase in~~ 
 11.2   ~~revenues for the annexing municipality bears no reasonable~~ 
 11.3   ~~relation to the monetary value of benefits conferred upon the~~ 
 11.4   ~~annexed area.~~  The ~~board~~ judge may deny the annexation ~~(a)~~ if it 
 11.5   appears that annexation of all or a part of the property to an 
 11.6   adjacent municipality would better serve the interests of the 
 11.7   residents of the property ~~or (b) if the remainder of the~~ 
 11.8   ~~township would suffer undue hardship~~. 
 11.9      The ~~board~~ judge may alter the boundaries of the area to be 
 11.10  annexed by increasing or decreasing the area so as to include 
 11.11  only that property which is now or is about to become urban or 
 11.12  suburban in character or to add property of such character 
 11.13  abutting the area proposed for annexation in order to preserve 
 11.14  or improve the symmetry of the area, or to exclude property that 
 11.15  may better be served by another unit of government.  If the 
 11.16  ~~board~~ judge determines that part of the area would be better 
 11.17  served by another municipality or township, the ~~board~~ judge may 
 11.18  initiate and approve annexation on ~~its~~ the judge's own motion by 
 11.19  conducting further hearings and issuing orders pursuant to 
 11.20  subdivisions 3, 4, and 5.  In all cases, the ~~board~~ judge shall 
 11.21  set forth the factors which are the basis for the decision. 
 11.22     Subd. 4a.  [PROCEEDINGS INITIATED BY JOINT RESOLUTION.] If 
 11.23  the proceeding has been initiated under subdivision 1, clause 
 11.24  (d), any annexation order shall include a provision for the 
 11.25  election of new municipal officers in accordance with section 
 11.26  414.09.  The expanded municipality shall be governed by the home 
 11.27  rule charter or statutory form which governs the annexing 
 11.28  municipality, except that any ward system for the election of 
 11.29  council members shall be inoperable.  The ordinances of both the 
 11.30  annexing municipality and the township shall continue in effect 
 11.31  within the former boundaries until repealed by the governing 
 11.32  body of the new municipality. 
 11.33     Notwithstanding any other provision of law to the contrary 
 11.34  the ~~board~~ judge may provide for election of council members by 
 11.35  wards, not less than three nor more than seven in number, whose 
 11.36  limits are prescribed in the ~~board~~ order, upon a finding that 
 12.1   area representation is required to accord proper representation 
 12.2   in the municipality because of uneven population density in 
 12.3   different parts thereof or the existence of agricultural lands 
 12.4   therein which are in the path of suburban development; but after 
 12.5   four years from the effective date of an annexation the council 
 12.6   of the municipality may by resolution adopted by a four-fifths 
 12.7   vote abolish the ward system and provide for the election of all 
 12.8   council members at large. 
 12.9      Until the effective date of the annexation order, the town 
 12.10  board and other officers of the town shall continue to exercise 
 12.11  their powers and duties under the town laws in that portion of 
 12.12  the municipality that was formerly the town, and the council and 
 12.13  other officers of the annexing municipality shall continue to 
 12.14  exercise their powers and duties in that portion of the expanded 
 12.15  municipality that was formerly the municipality.  Thereafter the 
 12.16  town board and the council of the annexing municipality shall 
 12.17  have no jurisdiction within the municipality, and the new 
 12.18  municipal council and other new officers shall act in respect to 
 12.19  any matters previously undertaken by the town board of 
 12.20  supervisors or municipal council within the limits of the 
 12.21  expanded municipality, including the making of any improvement 
 12.22  and the levying of any special assessments therefor in the same 
 12.23  manner and to the same effect as if such improvement had been 
 12.24  undertaken by the municipality. 
 12.25     The new municipal council may continue or discontinue any 
 12.26  board that may have previously existed in the town or former 
 12.27  municipality. 
 12.28     Subd. 6.  [EFFECTIVE DATE OF ANNEXATION.] The annexation 
 12.29  shall be effective as of the date fixed in the annexation order 
 12.30  or on such later date as is fixed in the annexation order.  A 
 12.31  copy of the annexation order must be delivered immediately by 
 12.32  the ~~executive director of the Minnesota municipal board~~ office 
 12.33  of strategic and long-range planning or the administrative law 
 12.34  judge to the appropriate county auditor or auditors.  For the 
 12.35  purposes of taxation, if the annexation becomes effective on or 
 12.36  before August 1 of a levy year, the municipality may levy on the 
 13.1   annexed area beginning with that same levy year.  If the 
 13.2   annexation becomes effective after August 1 of a levy year, the 
 13.3   town may continue to levy on the annexed area for that levy 
 13.4   year, and the municipality may not levy on the annexed area 
 13.5   until the following levy year. 
 13.6      Sec. 14.  Minnesota Statutes 1994, section 414.0325, is 
 13.7   amended to read: 
 13.8      414.0325 [ORDERLY ANNEXATIONS WITHIN A DESIGNATED AREA.] 
 13.9      Subdivision 1.  [INITIATING THE PROCEEDING.] One or more 
 13.10  townships and one or more municipalities, by joint resolution, 
 13.11  may designate an unincorporated area as in need of orderly 
 13.12  annexation and may confer jurisdiction:  (1) on the ~~board~~ office 
 13.13  of strategic and long-range planning, or (2) if the resolution 
 13.14  is adopted before July 1, 1995, and the resolution requests a 
 13.15  hearing but is not heard before July 1, 1995, on the office of 
 13.16  administrative hearings, over annexations in the designated area 
 13.17  and over the various provisions in said agreement by submission 
 13.18  of said joint resolution to the ~~executive director~~ office of 
 13.19  strategic and long-range planning.  The resolution shall include 
 13.20  a description of the designated area.  Thereafter, an annexation 
 13.21  of any part of the designated area may be initiated by 
 13.22  submitting to the ~~executive director~~ office of strategic and 
 13.23  long-range planning or, if the joint resolution requests a 
 13.24  hearing, to the office of administrative hearings, a resolution 
 13.25  of any signatory to the joint resolution or by the ~~board~~ office 
 13.26  of strategic and long-range planning of its own motion. 
 13.27     Whenever the pollution control agency or other state agency 
 13.28  pursuant to sections 115.03, 115.071, 115.49, or any law giving 
 13.29  a state agency similar powers, orders a municipality to extend a 
 13.30  municipal service to a designated unincorporated area, such an 
 13.31  order will confer jurisdiction on the ~~Minnesota municipal~~ 
 13.32  ~~board~~ office of strategic and long-range planning to ~~consider~~ 
 13.33  refer the matter to the office of administrative hearings for 
 13.34  determination, by order of an administrative law judge, of the 
 13.35  designation of the area for orderly annexation.  
 13.36     If a joint resolution designates an area as in need of 
 14.1   orderly annexation and states that no alteration of its stated 
 14.2   boundaries is appropriate, the ~~board~~ office of strategic and 
 14.3   long-range planning or the administrative law judge may review 
 14.4   and comment, but may not alter the boundaries.  
 14.5      If a joint resolution designates an area as in need of 
 14.6   orderly annexation, provides for the conditions for its 
 14.7   annexation, and states that no consideration by the ~~board~~ office 
 14.8   of strategic and long-range planning is necessary, the ~~board~~ 
 14.9   office of strategic and long-range planning may review and 
 14.10  comment, but shall, within 30 days, order the annexation in 
 14.11  accordance with the terms of the resolution.  
 14.12     ~~Subd. 1a.  [ORDERLY ANNEXATION BY PETITION.] If the board~~ 
 14.13  ~~receives a petition for annexation of an area owned by a~~ 
 14.14  ~~municipality or from all of the property owners in an area, and~~ 
 14.15  ~~the area is within two miles of the corporate boundaries of the~~ 
 14.16  ~~municipality, the petition shall confer jurisdiction on the~~ 
 14.17  ~~board to consider designation of the area for orderly annexation.~~
 14.18  ~~Upon receipt of the petition, the board shall inform the~~ 
 14.19  ~~affected parties of their opportunity to request a hearing~~ 
 14.20  ~~before the board on the petition, and if a hearing is requested,~~ 
 14.21  ~~it must be held within 60 days of the request.  Any person~~ 
 14.22  ~~aggrieved by the board's designation of an area as appropriate~~ 
 14.23  ~~for orderly annexation may appeal the board's order to district~~ 
 14.24  ~~court in accordance with section 414.07.~~ 
 14.25     ~~At least 60 days before a petition is filed, the petitioner~~ 
 14.26  ~~must notify the municipality that the petitioner intends to file~~ 
 14.27  ~~a petition for annexation.  At least 30 days before a petition~~ 
 14.28  ~~is filed for annexation under this subdivision or section~~ 
 14.29  ~~414.033, the petitioner must be notified by the municipality~~ 
 14.30  ~~that the cost of electric utility service to the petitioner may~~ 
 14.31  ~~change if the land is annexed to the municipality.  The notice~~ 
 14.32  ~~must include an estimate of the cost impact of any change in~~ 
 14.33  ~~electric utility services, including rate changes and~~ 
 14.34  ~~assessments, resulting from the annexation.~~ 
 14.35     Subd. 2.  [~~BOARD'S~~ HEARING AND NOTICE; TRANSITIONAL 
 14.36  PROVISION.] Upon receipt of a joint resolution for annexation ~~of~~ 
 15.1   ~~a part of the designated area~~ under this section that is adopted 
 15.2   before July 1, 1995, and the resolution requests a hearing but 
 15.3   the matter is not heard before July 1, 1995, the ~~executive~~ 
 15.4   ~~director~~ office of strategic and long-range planning shall 
 15.5   inform the office of administrative hearings which shall set a 
 15.6   time and place for a hearing in accordance with section 414.09.  
 15.7   No joint resolution adopted under this section after June 30, 
 15.8   1995, may request a hearing. 
 15.9      Subd. 3.  [~~BOARD'S~~ ORDER.] In arriving at its decision, the 
 15.10  ~~board~~ administrative law judge shall consider the following 
 15.11  factors: 
 15.12     (a) Present population, past population growth and 
 15.13  projected population of the property proposed for annexation and 
 15.14  the annexing municipality; 
 15.15     (b) Quantity of land within the property proposed for 
 15.16  annexation and the annexing municipality; and natural terrain 
 15.17  including general topography, major watersheds, soil conditions 
 15.18  and such natural features as rivers, lakes and major bluffs; 
 15.19     (c) Degree of contiguity of the boundaries between the 
 15.20  annexing municipality and the property proposed for annexation; 
 15.21     (d) Present pattern of physical development of the property 
 15.22  proposed for annexation and the annexing municipality including 
 15.23  residential, industrial, commercial, agricultural and 
 15.24  institutional land uses; the present transportation network and 
 15.25  potential transportation issues, including proposed highway 
 15.26  development; 
 15.27     (e) Land use controls and planning presently being utilized 
 15.28  in the annexing municipality and the property proposed for 
 15.29  annexation, including comprehensive plans for development in the 
 15.30  area and plans and policies of the metropolitan council.  If 
 15.31  there is an inconsistency between the proposed development and 
 15.32  the land use planning ordinance in force, the reason for the 
 15.33  inconsistency; 
 15.34     (f) Present governmental services being provided in the 
 15.35  annexing municipality and the property proposed for annexation, 
 15.36  including water and sewer service, fire rating and protection, 
 16.1   police protection, street improvements and maintenance, 
 16.2   administrative services, and recreational facilities; 
 16.3      (g) Existing or potential problems of environmental 
 16.4   pollution and the need for additional services to resolve these 
 16.5   problems; 
 16.6      (h) Plans and programs by the annexing municipality for 
 16.7   providing needed governmental services to the property proposed 
 16.8   for annexation; 
 16.9      (i) Fiscal data of the annexing municipality and the 
 16.10  property proposed for annexation, including net tax capacity and 
 16.11  the present bonded indebtedness, and the local tax rates of the 
 16.12  county, school district, and township; 
 16.13     (j) Relationship and effect of the proposed annexation on 
 16.14  communities adjacent to the area and on school districts within 
 16.15  and adjacent to the area; 
 16.16     (k) Adequacy of town government to deliver necessary 
 16.17  services to the property proposed for annexation; 
 16.18     (l) Analysis of whether the needed governmental services 
 16.19  can best be provided through incorporation or annexation to an 
 16.20  adjacent municipality; and 
 16.21     (m) If only a part of a township is annexed, the ability of 
 16.22  the remainder of the township to continue or the feasibility of 
 16.23  it being incorporated separately or being annexed to another 
 16.24  municipality. 
 16.25     Based upon these factors, the ~~board may~~ judge shall order 
 16.26  the annexation if it finds that the area proposed for annexation 
 16.27  (a) is now or is about to become urban or suburban in character 
 16.28  and that the annexing municipality is capable of providing the 
 16.29  services required by the area within a reasonable time; or (b) 
 16.30  if it finds that the existing township form of government is not 
 16.31  adequate to protect the public health, safety, and welfare; or 
 16.32  (c) if it finds that annexation would be in the best interests 
 16.33  of the area proposed for annexation.  The ~~board~~ judge may deny 
 16.34  the annexation if it conflicts with any provision of the joint 
 16.35  agreement.  The ~~board~~ judge may alter the boundaries of the 
 16.36  proposed annexation by increasing or decreasing the area so as 
 17.1   to include that property within the designated area which is in 
 17.2   need of municipal services or will be in need of municipal 
 17.3   services. 
 17.4      If the annexation is denied, no proceeding for the 
 17.5   annexation of substantially the same area may be initiated 
 17.6   within two years from the date of the ~~board's~~ judge's order 
 17.7   unless the new proceeding is initiated by a majority of the 
 17.8   area's property owners and the petition is supported by affected 
 17.9   parties to the resolution.  In all cases, the ~~board~~ judge shall 
 17.10  set forth the factors which are the basis for the decision. 
 17.11     Subd. 4.  [EFFECTIVE DATE OF ANNEXATION.] The ~~board's~~ order 
 17.12  shall be effective upon the issuance of the order or at such 
 17.13  later time as is provided ~~by the board~~ in ~~its~~ the order.  A copy 
 17.14  of the annexation order must be delivered immediately by 
 17.15  the ~~executive director of the Minnesota municipal board~~ office 
 17.16  of strategic and long-range planning or the administrative law 
 17.17  judge to the appropriate county auditor or auditors.  For the 
 17.18  purposes of taxation, if the annexation becomes effective on or 
 17.19  before August 1 of a levy year, the municipality may levy on the 
 17.20  annexed area beginning with that same levy year.  If the 
 17.21  annexation becomes effective after August 1 of a levy year, the 
 17.22  town may continue to levy on the annexed area for that levy 
 17.23  year, and the municipality may not levy on the annexed area 
 17.24  until the following levy year. 
 17.25     Subd. 5.  [PLANNING IN THE AREA DESIGNATED FOR ORDERLY 
 17.26  ANNEXATION.] A joint resolution may provide for the 
 17.27  establishment of a board to exercise planning and land use 
 17.28  control authority within any area designated as an orderly 
 17.29  annexation area pursuant to this section, in the manner 
 17.30  prescribed by Minnesota Statutes 1976, section 471.59, 
 17.31  subdivisions 2 to 8, inclusive. 
 17.32     (a) A board established pursuant to a joint resolution 
 17.33  shall have all of the powers contained in sections 462.351 to 
 17.34  462.364, and shall have the authority to adopt and enforce the 
 17.35  uniform fire code promulgated pursuant to section 299F.011. 
 17.36     (b) The joint resolution may provide that joint planning 
 18.1   and land use controls shall apply to any or all parts of the 
 18.2   area designated for orderly annexation as well as to any 
 18.3   adjacent unincorporated or incorporated area, provided that the 
 18.4   area to be included shall be described in the joint resolution. 
 18.5      (c) If the joint resolution does not provide for joint 
 18.6   planning and land use control, the following procedures shall 
 18.7   govern: 
 18.8      If the county and townships agree to exclude the area from 
 18.9   their zoning and subdivision ordinances, the municipality may 
 18.10  extend its zoning and subdivision regulations to include the 
 18.11  entire orderly annexation area as provided in section 462.357, 
 18.12  subdivision 1, and section 462.358, subdivision 1. 
 18.13     If the county and township do not agree to such 
 18.14  extraterritorial zoning and subdivision regulation by the 
 18.15  municipality, zoning and subdivision regulation within the 
 18.16  orderly annexation area shall be controlled by a three-member 
 18.17  committee with one member appointed from each of the municipal, 
 18.18  town, and county governing bodies.  This committee shall serve 
 18.19  as the "governing body" and "board of appeals and adjustments", 
 18.20  for purposes of sections 462.357 and 462.358, within the orderly 
 18.21  annexation area.  The committee shall have all of the powers 
 18.22  contained in sections 462.351 to 462.364, and shall have the 
 18.23  authority to adopt and enforce the uniform fire code promulgated 
 18.24  pursuant to section 299F.011. 
 18.25     Sec. 15.  Minnesota Statutes 1994, section 414.033, is 
 18.26  amended to read: 
 18.27     414.033 [ANNEXATION BY ORDINANCE.] 
 18.28     Subdivision 1.  [UNINCORPORATED PROPERTY.] Unincorporated 
 18.29  property abutting a municipality may be annexed to the 
 18.30  municipality by ordinance as provided for in this section. 
 18.31     Subd. 2.  [ANNEXATION CRITERIA.] A municipal council may by 
 18.32  ordinance declare land annexed to the municipality and any such 
 18.33  land is deemed to be urban or suburban in character or about to 
 18.34  become so if: 
 18.35     (1) the land is owned by the municipality; 
 18.36     (2) the land is completely surrounded by land within the 
 19.1   municipal limits; 
 19.2      (3) the land abuts the municipality and the area to be 
 19.3   annexed is 60 acres or less, and the area to be annexed is not 
 19.4   presently served by public sewer facilities or public sewer 
 19.5   facilities are not otherwise available, and the municipality 
 19.6   receives a petition for annexation from all the property owners 
 19.7   of the land; ~~or~~ 
 19.8      (4) the land has been approved after August 1, 1995, by a 
 19.9   preliminary plat or final plat for subdivision to provide 
 19.10  residential lots that average 21,780 square feet or less in area 
 19.11  and the land is located within two miles of the municipal 
 19.12  limits; or 
 19.13     (5) the perimeter of the area to be annexed by a 
 19.14  municipality is 60 percent or more bordered by the municipality 
 19.15  and the area to be annexed is 40 acres or less. 
 19.16     Subd. 2a.  [MUNICIPALITY MAY ANNEX NONABUTTING PROPERTY; 
 19.17  CRITERIA.] Notwithstanding the abutting requirement of 
 19.18  subdivision 1, if land is owned by a municipality or if all of 
 19.19  the landowners petition for annexation, and the land is within 
 19.20  an existing orderly annexation area as provided by section 
 19.21  414.0325, then the municipality may declare the land annexed.  
 19.22  This municipal action does not otherwise affect the other terms 
 19.23  and conditions of existing orderly annexation agreements entered 
 19.24  into pursuant to section 414.0325. 
 19.25     Subd. 2b.  [NOTICE REQUIRED.] Before a municipality may 
 19.26  adopt an ordinance under subdivision 2, clause (2), (3), or (4), 
 19.27  or subdivision 2a, a municipality must hold a public hearing and 
 19.28  give 30 days' written notice by certified mail to the town or 
 19.29  towns affected by the proposed ordinance and to all landowners 
 19.30  within and contiguous to the area to be annexed.  
 19.31     ~~Subd. 3.  If the perimeter of the area to be annexed by a~~ 
 19.32  ~~municipality is 60 percent or more bordered by the municipality~~ 
 19.33  ~~and if the area to be annexed is 40 acres or less, the~~ 
 19.34  ~~municipality shall serve notice of intent to annex upon the town~~ 
 19.35  ~~board and the municipal board, unless the area is appropriate~~ 
 19.36  ~~for annexation by ordinance under subdivision 2, clause (3).~~  
 20.1   ~~The town board shall have 90 days from the date of service to~~ 
 20.2   ~~serve objections with the board.  If no objections are~~ 
 20.3   ~~forthcoming within the said 90 day period, such land may be~~ 
 20.4   ~~annexed by ordinance.  If objections are filed with the board,~~ 
 20.5   ~~the board shall conduct hearings and issue its order as in the~~ 
 20.6   ~~case of annexations under section 414.031, subdivisions 3 and 4.~~ 
 20.7      Subd. 5.  [PETITION BY PROPERTY OWNERS.] If the land is 
 20.8   platted, or, if unplatted, does not exceed 200 acres, a majority 
 20.9   of the property owners in number may petition the municipal 
 20.10  council to have such land included within the abutting 
 20.11  municipality and, within ten days thereafter, shall file copies 
 20.12  of the petition with the ~~board~~ office of strategic and 
 20.13  long-range planning, the town board, the county board and the 
 20.14  municipal council of any other municipality which borders the 
 20.15  land to be annexed.  Within 90 days from the date of service, 
 20.16  the town board or the municipal council of such abutting 
 20.17  municipality may submit written objections to the annexation to 
 20.18  the ~~board~~ office and the annexing municipality.  Upon receipt of 
 20.19  such objections, the ~~board shall proceed to hold a hearing and~~ 
 20.20  ~~issue its order~~ matter shall be heard and determined by order of 
 20.21  an administrative law judge in accordance with section 414.031, 
 20.22  subdivisions 3, 4, and 5. If written objections are not 
 20.23  submitted within the time specified hereunder and if the 
 20.24  municipal council determines that property proposed for the 
 20.25  annexation is now or is about to become urban or suburban in 
 20.26  character, it may by ordinance declare such land annexed to the 
 20.27  municipality.  If the petition is not signed by all the property 
 20.28  owners of the land proposed to be annexed, the ordinance shall 
 20.29  not be enacted until the municipal council has held a hearing on 
 20.30  the proposed annexation after at least 30 days mailed notice to 
 20.31  all property owners within the area to be annexed. 
 20.32     Subd. 6.  [MULTIPLE ANNEXATION PROCEEDINGS; ORDERS.] 
 20.33  Whenever a proceeding for annexation is initiated under this 
 20.34  section and all or any part of the land is included in another 
 20.35  boundary adjustment proceeding pending before the ~~board~~ office 
 20.36  of strategic and long-range planning or an administrative law 
 21.1   judge, no action thereon shall be taken by the municipality, 
 21.2   unless otherwise provided by an order of the ~~board~~ authority 
 21.3   before which the other proceeding is pending, until final 
 21.4   disposition has been made of the petition pending before the 
 21.5   ~~board~~ other authority.  Under this section the ~~board~~ authority 
 21.6   before which the other proceeding is pending will accept a 
 21.7   waiver from all parties having a right to object, stating they 
 21.8   have no objections to the proposed annexation and waiving the 90 
 21.9   day period before an annexation ordinance may be adopted. 
 21.10     Subd. 7.  [TAX LEVIES.] Any annexation ordinance provided 
 21.11  for in this section must be filed with the ~~board~~ office of 
 21.12  strategic and long-range planning, the township, the county 
 21.13  auditor and the secretary of state and is final on the date the 
 21.14  ordinance is approved ~~by the board~~.  A copy of the annexation 
 21.15  ordinance must be delivered immediately by the governing body of 
 21.16  the municipality to the appropriate county auditor or auditors.  
 21.17  For the purposes of taxation, if the annexation becomes 
 21.18  effective on or before August 1 of a levy year, the municipality 
 21.19  may levy on the annexed area beginning with that same levy 
 21.20  year.  If the annexation becomes effective after August 1 of a 
 21.21  levy year, the town may continue to levy on the annexed area for 
 21.22  that levy year, and the municipality may not levy on the annexed 
 21.23  area until the following levy year. 
 21.24     Subd. 9.  [POPULATION STATEMENT.] The ~~municipal board~~ 
 21.25  office of strategic and long-range planning or the 
 21.26  administrative law judge in ~~its~~ the approval letter may state 
 21.27  the population of the area annexed by ordinance.  The stated 
 21.28  population shall be effective on the date of the letter or at a 
 21.29  later date set in the letter.  If population information is not 
 21.30  contained in the petition or notice of intent for annexation and 
 21.31  the annexation ordinance, the ~~board~~ approval letter shall not 
 21.32  state the population. 
 21.33     Subd. 10.  [ADDITIONAL INFORMATION.] The ~~municipal board~~ 
 21.34  office of strategic and long-range planning or the 
 21.35  administrative law judge may, at ~~its~~ the discretion of the 
 21.36  office or the judge, require the city or property owners to 
 22.1   furnish additional information concerning an annexation by 
 22.2   ordinance to inform the ~~board~~ requesting authority about the 
 22.3   extent to which the proposed annexation conforms to the 
 22.4   statutory criteria set forth in sections 414.01, subdivision 1 
 22.5   and 414.031, subdivision 4. 
 22.6      Subd. 11.  [FLOODPLAIN; SHORELAND AREA.] When a 
 22.7   municipality declares land annexed to the municipality under 
 22.8   subdivision 2, clause (3), or subdivision 2a, and the land is 
 22.9   within a designated floodplain, as provided by section 103F.111, 
 22.10  subdivision 4, or a shoreland area, as provided by section 
 22.11  103F.205, subdivision 4, the municipality shall adopt or amend 
 22.12  its land use controls to conform to chapter 103F, and any new 
 22.13  development of the annexed land shall be subject to chapter 103F.
 22.14     Subd. 12.  [PROPERTY TAXES.] When a municipality annexes 
 22.15  land under subdivision 2, clause (2), (3), or (4), or 
 22.16  subdivision 2a, property taxes payable on the annexed land shall 
 22.17  continue to be paid to the affected town or towns for the year 
 22.18  in which the annexation becomes effective.  Thereafter, property 
 22.19  taxes on the annexed land shall be paid to the municipality.  In 
 22.20  the first year following the year the land was annexed, the 
 22.21  municipality shall make a cash payment to the affected town or 
 22.22  towns in an amount equal to 90 percent of the property taxes 
 22.23  paid in the year the land was annexed; in the second year, an 
 22.24  amount equal to 70 percent of the property taxes paid in the 
 22.25  year the land was annexed; in the third year, an amount equal to 
 22.26  50 percent of the property taxes paid in the year the land was 
 22.27  annexed; in the fourth year, an amount equal to 30 percent of 
 22.28  the property taxes paid in the year the land was annexed; and in 
 22.29  the fifth year, an amount equal to ten percent of the property 
 22.30  taxes paid in the year the land was annexed.  The municipality 
 22.31  and the affected township may agree to a different payment. 
 22.32     Sec. 16.  Minnesota Statutes 1994, section 414.035, is 
 22.33  amended to read: 
 22.34     414.035 [DIFFERENTIAL TAXATION.] 
 22.35     Whenever ~~a board~~ an order, under section 414.031, 414.0325, 
 22.36  or 414.033, annexes part or all of a township to a municipality, 
 23.1   the ~~board~~ order may provide that the tax rate of the annexing 
 23.2   municipality on the area annexed shall be increased in 
 23.3   substantially equal proportions over not more than six years to 
 23.4   equality with the tax rate on the property already within the 
 23.5   municipality.  The appropriate period, if any, shall be based on 
 23.6   the time reasonably required to effectively provide full 
 23.7   municipal services to the annexed area. 
 23.8      Sec. 17.  Minnesota Statutes 1994, section 414.036, is 
 23.9   amended to read: 
 23.10     414.036 [MUNICIPAL REIMBURSEMENT.] 
 23.11     When ~~a board~~ an order under section 414.0325 annexes part 
 23.12  of a town to a municipality, the orderly annexation agreement 
 23.13  between the town and municipality may provide a reimbursement 
 23.14  from the municipality to the town for all or part of the taxable 
 23.15  property annexed as part of the ~~board~~ order.  The reimbursement 
 23.16  shall be completed in substantially equal payments over not less 
 23.17  than two nor more than six years from the time of annexation. 
 23.18     Sec. 18.  Minnesota Statutes 1994, section 414.041, is 
 23.19  amended to read: 
 23.20     414.041 [CONSOLIDATION OF TWO OR MORE MUNICIPALITIES.] 
 23.21     Subdivision 1.  [INITIATING THE PROCEEDING.] Two or more 
 23.22  municipalities may be the subject of a single proceeding 
 23.23  provided that each municipality abuts at least one of the 
 23.24  included municipalities.  The proceeding shall be initiated in 
 23.25  one of the following ways:  
 23.26     (a) Submitting to the ~~executive director~~ office of 
 23.27  strategic and long-range planning a resolution of the city 
 23.28  council of each affected municipality; 
 23.29     (b) Submitting to the ~~executive director~~ office a petition 
 23.30  signed by five percent or more of the resident voters of a 
 23.31  municipality who voted for governor at the last general 
 23.32  election; or 
 23.33     (c) By the ~~board~~ office on its own motion.  
 23.34     The petition or resolution shall set forth the following 
 23.35  information about each included municipality: name, description 
 23.36  of boundaries, the reasons for requesting the consolidation and 
 24.1   the names of all parties entitled to mailed notice under section 
 24.2   414.09.  The party initiating the proceeding shall serve copies 
 24.3   of the petition or resolution on all of the included 
 24.4   municipalities. 
 24.5      Subd. 2.  [APPOINTMENT OF CONSOLIDATION COMMISSION.] Upon 
 24.6   receipt of a petition or a resolution requesting consolidation 
 24.7   or upon the ~~board's~~ office's own motion, the ~~board~~ office shall 
 24.8   appoint a consolidation commission from a list of ten candidates 
 24.9   submitted by each affected city council.  The commission shall 
 24.10  be composed of not fewer than five members from each affected 
 24.11  municipality.  From a separate list of three persons submitted 
 24.12  by each affected city council, the ~~board~~ office shall appoint a 
 24.13  commission chair who is not a resident of an affected 
 24.14  municipality but who resides in an affected county.  
 24.15     No person is disqualified from serving on a consolidation 
 24.16  commission by reason of holding other elected or appointed 
 24.17  office.  Consolidation commission members shall hold office 
 24.18  until a consolidation report has been issued by the commission.  
 24.19  The ~~board~~ office shall fill vacancies in the commission by 
 24.20  appointment.  The consolidation commission shall make rules with 
 24.21  reference to its operation and procedures including quorum 
 24.22  requirements with reference to its operations and procedures.  
 24.23     Subd. 3.  [COMMISSION'S HEARING AND REPORT.] The 
 24.24  consolidation commission shall conduct hearings regarding the 
 24.25  proposed consolidation.  The hearings shall include, but are not 
 24.26  limited to, the following subjects:  
 24.27     (a) The contents of any city charter for the proposed 
 24.28  consolidated city or the form of government of the proposed 
 24.29  consolidated city; 
 24.30     (b) Analysis of whether a ward system shall be included in 
 24.31  the form of government of the proposed consolidated city; and 
 24.32     (c) Each factor considered ~~by the board~~ under subdivision 
 24.33  5, clauses (a) to (i).  
 24.34     Based on these factors and upon other matters which come 
 24.35  before the consolidation commission, the commission shall issue 
 24.36  a report to the ~~municipal board~~ office with findings and 
 25.1   recommendations within two years from the date of the ~~board's~~ 
 25.2   initial appointment of the commission.  
 25.3      Subd. 4.  [~~BOARD'S~~ HEARING AND NOTICE.] Upon receipt of the 
 25.4   commission's report, the ~~executive director~~ office of strategic 
 25.5   and long-range planning shall inform the office of 
 25.6   administrative hearings which shall designate a time and a place 
 25.7   for a hearing in accordance with section 414.09. 
 25.8      Subd. 5.  [~~BOARD'S~~ ORDER.] In arriving at ~~its~~ a decision, 
 25.9   the ~~board~~ administrative law judge shall consider the following 
 25.10  factors: 
 25.11     (a) Present population, past population growth and 
 25.12  projected population of the included municipalities; 
 25.13     (b) Quantity of land within the included municipalities; 
 25.14  and natural terrain including general topography, major 
 25.15  watersheds, soil conditions, and such natural features as 
 25.16  rivers, lakes and major bluffs; 
 25.17     (c) Degree of contiguity of the boundaries between the 
 25.18  included municipalities; 
 25.19     (d) Analysis of whether present planning and physical 
 25.20  development in the included municipalities indicates that the 
 25.21  consolidation of these municipalities will benefit planning and 
 25.22  land use patterns in the area; the present transportation 
 25.23  network and potential transportation issues, including proposed 
 25.24  highway development; 
 25.25     (e) Analysis of whether consolidation of the included 
 25.26  municipalities is consistent with comprehensive plans for the 
 25.27  area; 
 25.28     (f) Analysis of whether governmental services now available 
 25.29  in the included municipalities can be more effectively or more 
 25.30  economically provided by consolidation; 
 25.31     (g) Analysis of whether there are existing or potential 
 25.32  environmental problems and whether municipal consolidation will 
 25.33  help improve such conditions; 
 25.34     (h) Analysis of tax and governmental aid issues involved in 
 25.35  the consolidation of the included municipalities; and 
 25.36     (i) Analysis of the effect of consolidation on area school 
 26.1   districts. 
 26.2      (j) Analysis of the applicability of the state building 
 26.3   code.  
 26.4      The ~~board~~ administrative law judge shall consider and may 
 26.5   accept, amend, return to the commission for amendment or further 
 26.6   study, or reject the commission's findings and recommendations 
 26.7   based upon the ~~board's~~ judge's written determination of what is 
 26.8   in the best interests of the affected municipalities.  
 26.9      The ~~board~~ judge shall order the consolidation if it finds 
 26.10  that consolidation will be for the best interests of the 
 26.11  municipalities.  In all cases, the ~~board~~ judge shall set forth 
 26.12  the factors which are the basis for the decision.  
 26.13     If the ~~board~~ judge orders consolidation, ~~it~~ the judge shall 
 26.14  provide for election of new municipal officers in accordance 
 26.15  with section 414.09.  If the most populous of the included 
 26.16  municipalities is a statutory city, the new municipality shall 
 26.17  be a statutory city and the plan of government shall be Optional 
 26.18  Plan A, provided that an alternate plan may be adopted pursuant 
 26.19  to section 412.551, at any time.  If the most populous of the 
 26.20  included municipalities is a home rule charter city or organized 
 26.21  under a statute other than chapter 412, the new municipality 
 26.22  shall be governed by its home rule charter or the statutory form 
 26.23  under which it is governed except that any ward system for the 
 26.24  election of council members shall be inoperable.  If the 
 26.25  commission's findings and recommendations include a proposed 
 26.26  home rule charter for the new municipality, the ~~board~~ judge may 
 26.27  in ~~its~~ the order combine the issue of the adoption of the 
 26.28  charter and the vote on approval of the order for consolidation 
 26.29  into one question on the ballot, and shall submit it in a 
 26.30  special or general election as provided in section 410.10.  The 
 26.31  ordinances of all of the included municipalities shall continue 
 26.32  in effect within their former boundaries until repealed by the 
 26.33  governing body of the new municipality. 
 26.34     Notwithstanding any other provision of law to the contrary, 
 26.35  the ~~board~~ judge may in ~~its~~ the order establish a ward system in 
 26.36  the new municipality, in which event it shall establish not less 
 27.1   than three nor more than seven wards, each of which shall elect 
 27.2   one council member.  When more than two years have elapsed after 
 27.3   consolidation, the governing body may, by a four-fifths vote, 
 27.4   abolish the ward system. 
 27.5      The new municipality shall assume the name of the most 
 27.6   populous municipality unless previous to the election another 
 27.7   name is chosen by joint resolution of a majority of the included 
 27.8   municipalities or by the consolidation commission. 
 27.9      The number of license privileges existing in the included 
 27.10  municipalities prior to consolidation and pursuant to state law 
 27.11  shall not be diminished as a result of the consolidation. 
 27.12     If the consolidation is denied or defeated in a referendum, 
 27.13  no proceeding for the consolidation of the same municipalities 
 27.14  may be initiated within two years from the date of the ~~board's~~ 
 27.15  order unless authorized by the ~~board~~ judge. 
 27.16     Subd. 6.  [FINAL APPROVAL OF THE CONSOLIDATION.] (a) If the 
 27.17  consolidation was initiated by a petition of the resident voters 
 27.18  of a municipality, the ~~board's~~ judge's order for consolidation 
 27.19  shall be final upon approval by resolution of the city councils 
 27.20  in each of the affected municipalities unless ten percent or 
 27.21  more of the resident voters of an affected municipality who 
 27.22  voted for governor at the last general election petition the 
 27.23  city council for a referendum on the consolidation.  The 
 27.24  petition must be submitted within 90 days of the final date of 
 27.25  the ~~board's~~ order or the date of final approval of the ~~board's~~ 
 27.26  order by the city councils, whichever is later.  Upon receipt 
 27.27  and verification of the petition, the ~~board~~ judge shall order 
 27.28  the municipalities to conduct separate referenda at a general or 
 27.29  special election in each municipality on the same day, and the 
 27.30  referenda shall be held within six months of the receipt of the 
 27.31  petition.  Costs of the respective referenda shall be borne by 
 27.32  the respective municipality.  A majority of those voting in each 
 27.33  city must approve the proposed consolidation.  The results of 
 27.34  the referenda shall be certified to the ~~executive director of~~ 
 27.35  ~~the municipal board~~ judge and the office of strategic and 
 27.36  long-range planning by the chief election judge within ten days 
 28.1   after the referenda.  The ~~executive director~~ office shall upon 
 28.2   receipt of the certificate notify all parties of the election 
 28.3   results. 
 28.4      (b) If the consolidation was initiated by a city council 
 28.5   resolution of each affected municipality, the ~~board's~~ order for 
 28.6   consolidation shall be final unless ten percent or more of the 
 28.7   resident voters of an affected municipality petition for a 
 28.8   referendum as provided in clause (a).  
 28.9      (c) If the consolidation was initiated by the ~~board's~~ 
 28.10  office's own motion, no consolidation order ~~of the board~~ 
 28.11  involving existing municipalities shall become effective unless 
 28.12  adopted by the council of each affected municipality by a 
 28.13  majority vote and unless the consolidation order ~~of the board~~ is 
 28.14  approved by the qualified voters of the affected municipalities 
 28.15  at a general or special election set according to law.  The form 
 28.16  of the ballot shall be fixed by the ~~board~~ judge; and, if a 
 28.17  majority of the votes cast on the question in each municipality 
 28.18  are in favor of its adoption, the order ~~of the board~~ shall 
 28.19  become effective as provided herein.  
 28.20     (d) Notwithstanding a disapproval of the ~~board's~~ order for 
 28.21  consolidation by a city council of an affected municipality 
 28.22  required to approve the ~~board's~~ order in clause (a) or (c), the 
 28.23  ~~board's~~ order for consolidation shall nevertheless be deemed 
 28.24  approved by that city council if ten percent or more of the 
 28.25  resident voters of that municipality who voted for governor at 
 28.26  the last general election petition the city council for a 
 28.27  referendum on the consolidation as provided in clause (a), and a 
 28.28  majority of those voting in that municipality approve the 
 28.29  ~~board's~~ order for consolidation.  
 28.30     Subd. 7.  [DIFFERENTIAL TAXATION.] Where one municipality 
 28.31  is receiving substantially fewer municipal services, the ~~board~~ 
 28.32  judge may provide that the tax rate of the municipality shall be 
 28.33  increased in substantially equal proportions over a period of 
 28.34  not more than five years to equality with the tax rate in the 
 28.35  remainder of the new municipality.  The period shall be 
 28.36  determined by the ~~board~~ judge on the basis of the period 
 29.1   reasonably required to provide substantially equal municipal 
 29.2   services. 
 29.3      Subd. 8.  [EFFECTIVE DATE.] The consolidation shall be 
 29.4   effective upon the election and qualification of new municipal 
 29.5   officers, or at such later date as set by the ~~board in its~~ order.
 29.6      Sec. 19.  Minnesota Statutes 1994, section 414.051, is 
 29.7   amended to read: 
 29.8      414.051 [~~BOARD'S~~ REVIEW OF TOWNSHIPS ACCORDING TO 
 29.9   POPULATION.] 
 29.10     After each federal census, the ~~board~~ office of strategic 
 29.11  and long-range planning may determine the townships which have a 
 29.12  population in excess of 2,000 exclusive of any municipality or 
 29.13  part of a municipality within the township and make 
 29.14  recommendations which it deems necessary and reasonable to the 
 29.15  board of any such township. 
 29.16     Sec. 20.  Minnesota Statutes 1994, section 414.06, is 
 29.17  amended to read: 
 29.18     414.06 [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] 
 29.19     Subdivision 1.  [INITIATING THE PROCEEDING.] Property which 
 29.20  is situated within a municipality and abutting the municipal 
 29.21  boundary, rural in character and not developed for urban 
 29.22  residential, commercial, or industrial purposes may be detached 
 29.23  from the municipality according to the following procedure.  The 
 29.24  proceeding may be initiated by submitting to the ~~board~~ office of 
 29.25  strategic and long-range planning a resolution of the 
 29.26  municipality to which the land is attached or by submitting ~~to~~ 
 29.27  ~~the board~~ a petition of all of the property owners of the land 
 29.28  to be detached if the area is less than 40 acres or of 75 
 29.29  percent of the property owners if over 40 acres.  The petition 
 29.30  or resolution shall set forth the boundaries and the area of the 
 29.31  land to be detached, the number and character of the buildings, 
 29.32  the resident population, and the municipal improvements, if any, 
 29.33  in the area. 
 29.34     Subd. 2.  [~~BOARD'S~~ HEARING AND NOTICE.] If both a 
 29.35  resolution of the municipality and a petition by all the 
 29.36  property owners are submitted, no hearing is necessary.  In any 
 30.1   other case, upon receipt of a timely objection to a petition or 
 30.2   resolution, the ~~executive director of the board~~ office of 
 30.3   strategic and long-range planning shall inform the office of 
 30.4   administrative hearings which shall designate a time and place 
 30.5   for a hearing in accordance with section 414.09.  If no timely 
 30.6   objection is received, the office of strategic and long-range 
 30.7   planning shall order the detachment as requested in the petition 
 30.8   or resolution. 
 30.9      Subd. 3.  [~~BOARD'S~~ ORDER.] Upon completion of the hearing, 
 30.10  the ~~board~~ judge may order the detachment if it finds that the 
 30.11  requisite number of property owners have signed the petition if 
 30.12  initiated by the property owners, that the property is rural in 
 30.13  character and not developed for urban residential, commercial or 
 30.14  industrial purposes, that the property is within the boundaries 
 30.15  of the municipality and abuts a boundary, that the detachment 
 30.16  would not unreasonably affect the symmetry of the detaching 
 30.17  municipality, and that the land is not needed for reasonably 
 30.18  anticipated future development.  The ~~board~~ judge may deny the 
 30.19  detachment if ~~it~~ the judge finds that the remainder of the 
 30.20  municipality cannot continue to carry on the functions of 
 30.21  government without undue hardship. The ~~board~~ judge shall have 
 30.22  authority to decrease the area of property to be detached and 
 30.23  may include only a part of the proposed area to be detached.  If 
 30.24  the tract abuts more than one township, it shall become a part 
 30.25  of each township, being divided by projecting through it the 
 30.26  boundary line between the townships.  The detached area may be 
 30.27  relieved of the primary responsibility for existing indebtedness 
 30.28  of the municipality and be required to assume the indebtedness 
 30.29  of the township of which it becomes a part, in such proportion 
 30.30  as the ~~board~~ judge shall deem just and equitable having in view 
 30.31  the amount of taxes due and delinquent and the indebtedness of 
 30.32  each township and the municipality affected, if any, and for 
 30.33  what purpose the same was incurred, all in relation to the 
 30.34  benefit inuring to the detached area as a result of the 
 30.35  indebtedness and the last net tax capacity of the taxable 
 30.36  property in each township and municipality. 
 31.1      Subd. 4.  [EFFECTIVE DATE OF DETACHMENT.] The detachment 
 31.2   shall be effective upon the issuance of the ~~board's~~ order, or at 
 31.3   such later date, as provided by the ~~board in its~~ order.  A copy 
 31.4   of the detachment order must be delivered immediately by 
 31.5   the ~~executive director of the Minnesota municipal board~~ office 
 31.6   of strategic and long-range planning or the administrative law 
 31.7   judge to the appropriate county auditor or auditors.  For the 
 31.8   purposes of taxation, if the detachment becomes effective on or 
 31.9   before August 1 of a levy year, the town or towns acquiring the 
 31.10  detached area may levy on it beginning with that same levy 
 31.11  year.  If the detachment becomes effective after August 1 of a 
 31.12  levy year, the municipality may continue to levy on the detached 
 31.13  area for that levy year, and the town or towns acquiring the 
 31.14  detached area may not levy on it until the following levy year. 
 31.15     Sec. 21.  Minnesota Statutes 1994, section 414.061, is 
 31.16  amended to read: 
 31.17     414.061 [CONCURRENT DETACHMENT AND ANNEXATION OF 
 31.18  INCORPORATED LAND.] 
 31.19     Subdivision 1.  [INITIATING THE PROCEEDING.] Property of 
 31.20  one municipality which abuts another may be concurrently 
 31.21  detached and annexed by the procedure set forth in this 
 31.22  section.  The proceeding shall be initiated by submitting to the 
 31.23  ~~executive director~~ office of strategic and long-range planning 
 31.24  resolutions of both municipalities describing the land and 
 31.25  stating their desire to detach and annex the land. 
 31.26     Subd. 2.  [~~BOARD'S~~ ORDER.] If the resolutions are in order, 
 31.27  the ~~board~~ office may order the detachment and annexation. 
 31.28     Subd. 3.  [EFFECTIVE DATE.] The concurrent detachment and 
 31.29  annexation shall be effective upon the issuance of the ~~board's~~ 
 31.30  order, or at such later date as provided by the ~~board in its~~ 
 31.31  order.  A copy of the annexation order must be delivered 
 31.32  immediately by the ~~executive director of the Minnesota municipal~~ 
 31.33  ~~board~~ office of strategic and long-range planning to the 
 31.34  appropriate county auditor or auditors.  For the purposes of 
 31.35  taxation, if the annexation becomes effective on or before 
 31.36  August 1 of a levy year, the municipality acquiring the detached 
 32.1   area of another municipality may levy on it beginning with that 
 32.2   same levy year.  If the annexation becomes effective after 
 32.3   August 1 of a levy year, the municipality losing the detached 
 32.4   area may continue to levy on it for that levy year, and the 
 32.5   municipality acquiring the detached area may not levy on it 
 32.6   until the following levy year. 
 32.7      Subd. 4.  [~~BOARD~~ OFFICE INITIATION.] The ~~board~~ office may 
 32.8   initiate proceedings for the concurrent detachment and 
 32.9   annexation of portions of one municipality completely surrounded 
 32.10  by another municipality, on its own motion or upon the petition 
 32.11  of all of the owners of property in the completely surrounded 
 32.12  area.  In such cases the ~~board~~ office of administrative hearings 
 32.13  shall conduct hearings and issue its order as in the case of 
 32.14  consolidations of two or more municipalities under sections 
 32.15  414.041, subdivision 5, and 414.09. 
 32.16     Subd. 4a.  [PROPERTY NOT JOINING MAJOR PORTION OF 
 32.17  MUNICIPALITY.] Upon the petition of all of the owners of 
 32.18  property of a portion of a municipality which at no point joins 
 32.19  the major portion of the municipality but which at some point 
 32.20  joins another municipality, the ~~board~~ office may initiate 
 32.21  proceedings for the concurrent detachment and annexation of said 
 32.22  portion.  In such cases the ~~board~~ office of strategic and 
 32.23  long-range planning shall inform the office of administrative 
 32.24  hearings which shall conduct hearings and issue its order as in 
 32.25  the case of consolidations of two or more municipalities under 
 32.26  sections 414.041, subdivision 5, and 414.09. 
 32.27     Subd. 5.  [PROPERTY OWNER INITIATION.] Property owners may 
 32.28  initiate proceedings for the concurrent detachment of their 
 32.29  property from one municipality and its annexation to an adjacent 
 32.30  municipality by a petition signed by all of them that they 
 32.31  submit to the ~~board~~ office of strategic and long-range planning 
 32.32  accompanied by a resolution of the city council of at least one 
 32.33  of the affected municipalities.  The ~~board~~ office of strategic 
 32.34  and long-range planning shall inform the office of 
 32.35  administrative hearings which shall conduct hearings and issue 
 32.36  its order as in the case of consolidations of two or more 
 33.1   municipalities under sections 414.041, subdivision 5, and 414.09.
 33.2      Sec. 22.  Minnesota Statutes 1994, section 414.063, is 
 33.3   amended to read: 
 33.4      414.063 [JOINT AGREEMENTS.] 
 33.5      After notice and hearing as provided in section 414.09, the 
 33.6   ~~board~~ administrative law judge may include provisions of joint 
 33.7   agreements between political subdivisions in ~~its~~ the orders. 
 33.8      Sec. 23.  Minnesota Statutes 1994, section 414.067, is 
 33.9   amended to read: 
 33.10     414.067 [APPORTIONMENT OF ASSETS AND OBLIGATIONS.] 
 33.11     Subdivision 1.  [TOWNSHIP OR MUNICIPALITY DIVIDED.] 
 33.12  Whenever ~~the board~~ a judge divides an existing governmental 
 33.13  unit, the ~~board~~ judge may apportion the property and obligations 
 33.14  between the governmental unit adding territory and the 
 33.15  governmental unit from which the territory was obtained.  The 
 33.16  apportionment shall be made in a just and equitable manner 
 33.17  having in view the value of the existing township or municipal 
 33.18  property located in the area to be added, the assets, value, and 
 33.19  location of all the taxable property in the existing township or 
 33.20  municipality, the indebtedness, the taxes due and delinquent, 
 33.21  other revenue accrued but not paid to the existing township or 
 33.22  municipality and the ability of any remainder of the township or 
 33.23  municipality to function as an effective governmental unit.  The 
 33.24  order shall not relieve any property from any tax liability for 
 33.25  payment for any bonded obligation, but the taxable property in 
 33.26  the new municipality may be made primarily liable thereon. 
 33.27     Subd. 2.  [ENTIRE TOWNSHIP OR MUNICIPALITY.] When an entire 
 33.28  township is annexed by an existing municipality, or an entire 
 33.29  township is incorporated into a new municipality, or a 
 33.30  municipality is consolidated into a new municipality, all money, 
 33.31  claims, or properties, including real estate owned, held, or 
 33.32  possessed by the annexed, incorporated township or municipality, 
 33.33  and any proceeds or taxes levied by such town or municipality, 
 33.34  collected or uncollected, shall become and be the property of 
 33.35  the new or annexing municipality with full power and authority 
 33.36  to use and dispose of the same for public purposes as the 
 34.1   council or new annexing municipality may deem best, subject to 
 34.2   the rights of creditors.  Any bonded indebtedness of a town or 
 34.3   former municipality annexed to an existing municipality or 
 34.4   incorporated or consolidated into a new municipality shall be 
 34.5   borne only by that property within the boundaries of the former 
 34.6   town or municipality, provided, however, the units of government 
 34.7   concerned may by resolution of their governing bodies agree that 
 34.8   the new municipality shall assume the bonded indebtedness of the 
 34.9   former units of government existing and outstanding at the time 
 34.10  of annexation, incorporation, or consolidation. 
 34.11     Subd. 3.  [REVISION OF TAX RECORDS; REDISTRIBUTION OF 
 34.12  LEVIES.] In an apportionment made under this section, the ~~board~~ 
 34.13  judge may order the county auditor to revise tax records and 
 34.14  respread levies at any time prior to December 15 or order the 
 34.15  county treasurer to redistribute taxes levied and receivable. 
 34.16     Sec. 24.  Minnesota Statutes 1994, section 414.07, is 
 34.17  amended to read: 
 34.18     414.07 [~~APPEALS~~ JUDICIAL REVIEW.] 
 34.19     Subdivision 1.  [ORDERS ~~OF BOARD~~, TIME LIMITATION.] All 
 34.20  orders of the ~~board~~ administrative law judge shall be issued 
 34.21  within one year from the date of the day of the first hearing 
 34.22  thereon provided that the time may be extended for a fixed 
 34.23  additional period upon consent of all parties of record.  
 34.24  Failure to so order shall be deemed to be an order denying the 
 34.25  matter ~~before the board~~.  ~~An appeal may be taken from~~ Judicial 
 34.26  review of such failure to so order may be taken in the same 
 34.27  manner as ~~an appeal from~~ judicial review of an order as provided 
 34.28  in subdivision 2. 
 34.29     Subd. 2.  [GROUNDS FOR APPEAL.] Any person aggrieved by any 
 34.30  order of the ~~board may appeal to the district court upon the~~ 
 34.31  ~~following grounds:~~ 
 34.32     ~~(a) that the board had no jurisdiction to act;~~ 
 34.33     ~~(b) that the board exceeded its jurisdiction;~~ 
 34.34     ~~(c) that the order of the board is arbitrary, fraudulent,~~ 
 34.35  ~~capricious or oppressive or in unreasonable disregard of the~~ 
 34.36  ~~best interests of the territory affected; or~~ 
 35.1      ~~(d) that the order is based upon an erroneous theory of law.~~
 35.2      ~~The appeal shall be taken in the district court in the~~ 
 35.3   ~~county in which the majority of the area affected is located.~~  
 35.4   ~~The appeal shall not stay the effect of the order.  All notices~~ 
 35.5   ~~and other documents shall be served on both the executive~~ 
 35.6   ~~director and the attorney general's assistant assigned to the~~ 
 35.7   ~~board.~~ 
 35.8      ~~If the court determines that the action of the board~~ 
 35.9   ~~involved is unlawful or unreasonable or is not warranted by the~~ 
 35.10  ~~evidence in case an issue of fact is involved, the court may~~ 
 35.11  ~~vacate or suspend the action of the board involved, in whole or~~ 
 35.12  ~~in part, as the case requires.  The matter shall then be~~ 
 35.13  ~~remanded to the board for further action in conformity with the~~ 
 35.14  ~~decision of the court.~~ 
 35.15     ~~To render a review of a board order effectual, the~~ 
 35.16  ~~aggrieved person shall file with the court administrator of the~~ 
 35.17  ~~district court of the county in which the majority of the area~~ 
 35.18  ~~is located, within 30 days of the order, an application for~~ 
 35.19  ~~review together with the grounds upon which the review is sought.~~
 35.20     ~~An appeal lies from the district court as in other civil~~ 
 35.21  ~~cases~~ administrative law judge is entitled to judicial review of 
 35.22  the order as provided in sections 14.636 to 14.69. 
 35.23     Sec. 25.  Minnesota Statutes 1994, section 414.09, is 
 35.24  amended to read: 
 35.25     414.09 [UNIFORM PROCEDURES ~~OF BOARD~~.] 
 35.26     Subdivision 1.  [HEARINGS.] Proceedings initiated by the 
 35.27  submission of an initiating document or by the ~~board~~ office of 
 35.28  strategic and long-range planning of its own motion shall come 
 35.29  on for hearing within 30 to 60 days from receipt of the document 
 35.30  by the ~~board~~ office or from the date of ~~board~~ office action and 
 35.31  the ~~board~~ office or administrative law judge must submit ~~its~~ an 
 35.32  order no later than one year from the date of the day of the 
 35.33  first hearing.  ~~In any proceeding before the board and upon the~~ 
 35.34  ~~request of any party, the board shall meet physically rather~~ 
 35.35  ~~than by means of electronic media.~~  The place of the hearing 
 35.36  shall be in the county where a majority of the affected 
 36.1   territory is situated, and shall be established for the 
 36.2   convenience of the parties.  The ~~executive director~~ office or 
 36.3   judge shall mail notice of the hearing to the following 
 36.4   parties:  the township or municipality presently governing the 
 36.5   affected territory; any township or municipality abutting the 
 36.6   affected territory; the county where the affected territory is 
 36.7   situated; and each planning agency which has jurisdiction over 
 36.8   the affected area.  The ~~executive director~~ office or judge shall 
 36.9   cause notice of the hearing to be published for two successive 
 36.10  weeks in a legal newspaper of general circulation in the 
 36.11  affected area.  When the ~~board~~ administrative law judge 
 36.12  exercises ~~its~~ authority to change the boundaries of the affected 
 36.13  area so as to increase the quantity of the land, the hearing 
 36.14  shall be recessed and reconvened upon two weeks published notice 
 36.15  in a legal newspaper of general circulation in the affected area.
 36.16     Subd. 2.  [TRANSMITTAL OF ~~BOARD'S~~ THE ORDER.] The ~~executive~~ 
 36.17  ~~director~~ office or judge shall cause copies of the ~~board's~~ order 
 36.18  to be mailed to all parties entitled to mailed notice of hearing 
 36.19  under subdivision 1, the secretary of state, the department of 
 36.20  revenue, the state demographer, individual property owners if 
 36.21  initiated in that manner, affected county auditor, and any other 
 36.22  party of record.  The affected county auditor shall record the 
 36.23  order against the affected property. 
 36.24     Subd. 3.  [ELECTIONS OF MUNICIPAL OFFICERS.] An order 
 36.25  approving an incorporation or consolidation pursuant to this 
 36.26  chapter shall set a date for this election of new municipal 
 36.27  officers not less than 45 days nor more than 60 days after the 
 36.28  issuance of such order.  The ~~board~~ office shall appoint an 
 36.29  acting clerk for election purposes, at least three election 
 36.30  judges who shall be residents of the new municipality, and shall 
 36.31  designate polling places within the new municipality. 
 36.32     The acting clerk shall prepare the official election 
 36.33  ballot.  Affidavits of candidacy may be filed by any person 
 36.34  eligible to hold municipal office not more than four weeks nor 
 36.35  less than two weeks before the date designated ~~by the board~~ for 
 36.36  the election.  
 37.1      The election shall be conducted in conformity with the 
 37.2   charter and the laws for conducting municipal elections insofar 
 37.3   as applicable.  Any person eligible to vote at a township or 
 37.4   municipal election within the area of the new municipality, is 
 37.5   eligible to vote at such election. 
 37.6      Any excess in the expense of conducting the election over 
 37.7   receipts from filing fees shall be a charge against the new 
 37.8   municipality; any excess of receipts shall be deposited in the 
 37.9   treasury of the new municipality. 
 37.10     Sec. 26.  [APPROPRIATION.] 
 37.11     The following sums are appropriated from the general fund 
 37.12  to the office named to perform the powers and duties transferred 
 37.13  by sections 2 to 25, for the biennium ending June 30, 1997: 
 37.14     $....... to the office of strategic and long-range 
 37.15  planning; 
 37.16     $....... to the office of administrative hearings. 
 37.17     Sec. 27.  [REVISOR INSTRUCTION.] 
 37.18     In the next edition of Minnesota Statutes, the revisor of 
 37.19  statutes shall substitute any of the following, as appropriate, 
 37.20  for "municipal board" or "board" where those terms are used to 
 37.21  refer to duties of the abolished municipal board:  
 37.22     (1) "office of strategic and long-range planning" or 
 37.23  "office"; or 
 37.24     (2) "office of administrative hearings" or "office" or 
 37.25  "administrative law judge" or "judge." 
 37.26     Sec. 28.  [REPEALER.] 
 37.27     Minnesota Statutes 1994, sections 414.01, subdivisions 2, 
 37.28  3, 3a, 4, 5, 6a, 7a, 8, 10, 11, and 12; and 414.08, are repealed.
 37.29     Sec. 29.  [EFFECTIVE DATE.] 
 37.30     This act is effective July 1, 1995.