1.1                          A bill for an act
  1.2             relating to land use planning; providing for mandatory 
  1.3             comprehensive planning; appropriating money; amending 
  1.4             Minnesota Statutes 1996, sections 116C.04, by adding a 
  1.5             subdivision; 394.22, by adding subdivisions; 394.23; 
  1.6             394.24, subdivision 1; 394.32, by adding subdivisions; 
  1.7             462.351; 462.352, by adding a subdivision; 462.355, 
  1.8             subdivision 1a; and 462.357, subdivision 2; proposing 
  1.9             coding for new law in Minnesota Statutes, chapters 
  1.10            394; and 462; proposing coding for new law as 
  1.11            Minnesota Statutes, chapter 462D. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 116C.04, is 
  1.14  amended by adding a subdivision to read: 
  1.15     Subd. 12.  [PLANNING.] The board shall prepare a 
  1.16  comprehensive plan and official controls for each county and 
  1.17  city that does not adopt a comprehensive plan, as provided in 
  1.18  sections 394.23 and 462.3535. 
  1.19     Sec. 2.  Minnesota Statutes 1996, section 394.22, is 
  1.20  amended by adding a subdivision to read: 
  1.21     Subd. 13.  [CAPITAL IMPROVEMENT PROGRAM.] "Capital 
  1.22  improvement program" means an itemized program setting forth the 
  1.23  schedule and details of specific contemplated public 
  1.24  improvements by fiscal year, including public improvements in or 
  1.25  related to air space and subsurface areas necessary for mined 
  1.26  underground space development pursuant to sections 469.135 to 
  1.27  469.141, together with their estimated cost, the justification 
  1.28  for each improvement, the impact that such improvements will 
  2.1   have on the current operating expense of the county, and such 
  2.2   other information on capital improvements as may be pertinent. 
  2.3      Sec. 3.  Minnesota Statutes 1996, section 394.22, is 
  2.4   amended by adding a subdivision to read: 
  2.5      Subd. 14.  [GROWTH COUNTY.] "Growth county" means a county 
  2.6   outside the metropolitan area in which the population is 
  2.7   estimated by the state demographer to have a growth rate for the 
  2.8   most recent five-year period for which data is available that is 
  2.9   at least one percentage point higher than the average growth 
  2.10  rate for all counties in the state during the same period, and 
  2.11  in which the county population density is greater than 50 people 
  2.12  per square mile. 
  2.13     Sec. 4.  Minnesota Statutes 1996, section 394.22, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 15.  [METROPOLITAN AREA.] "Metropolitan area" means 
  2.16  the area defined in section 473.121, subdivision 2. 
  2.17     Sec. 5.  [394.225] [GOALS.] 
  2.18     The goals of comprehensive planning are to: 
  2.19     (1) guide change through planning and develop a community 
  2.20  vision for future development that is sustainable; 
  2.21     (2) coordinate planning to ensure compatibility of one 
  2.22  community's development with development of neighboring 
  2.23  communities; 
  2.24     (3) ensure broad citizen participation in planning and 
  2.25  decision making; 
  2.26     (4) respect and foster diversity among communities; 
  2.27     (5) use integrated information as a foundation for plans 
  2.28  and decisions; 
  2.29     (6) consider the long-term social, economic, and 
  2.30  environmental costs and benefits of development; 
  2.31     (7) pay the full environmental, social, and economic costs 
  2.32  of new development, including infrastructure costs such as 
  2.33  transportation, sewers and wastewater treatment, water, schools, 
  2.34  recreation, and open space; 
  2.35     (8) use natural resources and public funds efficiently by 
  2.36  directing growth towards areas with existing infrastructure and 
  3.1   services, and by encouraging development that is appropriate for 
  3.2   the ecology and character of the community; 
  3.3      (9) preserve features of local, regional, and statewide 
  3.4   significance, such as farmland, forests, open space, and unique 
  3.5   natural, historic, cultural, scenic, and recreational areas; 
  3.6      (10) live within our means; 
  3.7      (11) foster livable communities with safe, 
  3.8   pedestrian-friendly development that integrates a diverse mix of 
  3.9   housing and jobs, public transit, businesses, public spaces, and 
  3.10  recreational areas; and 
  3.11     (12) enhance Minnesota's economic strength and 
  3.12  competitiveness. 
  3.13     Sec. 6.  Minnesota Statutes 1996, section 394.23, is 
  3.14  amended to read: 
  3.15     394.23 [COMPREHENSIVE PLAN.] 
  3.16     Subdivision 1.  [GENERAL AUTHORITY.] The board shall have 
  3.17  the power and authority to prepare and adopt by ordinance, a 
  3.18  comprehensive plan.  A comprehensive plan or plans when adopted 
  3.19  by ordinance shall be the basis for official controls adopted 
  3.20  under the provisions of sections 394.21 to 394.37.  
  3.21     Subd. 2.  [PLANNING IN A GROWTH COUNTY.] The board in a 
  3.22  growth county shall adopt a comprehensive plan and official 
  3.23  controls to implement the plan.  In addition to any other 
  3.24  requirements of this chapter, the plan must reflect an urban 
  3.25  growth boundary for each urbanized area in the county.  The 
  3.26  urban growth boundary shall be established in coordination with 
  3.27  the affected municipality.  The area within the boundary shall 
  3.28  have a sufficient supply of developable land for at least a 
  3.29  prospective 20-year period, and the municipality shall plan for 
  3.30  the staged provision of urban services, including, but not 
  3.31  limited to, water, wastewater collection and treatment, and 
  3.32  transportation.  Outside the urban growth boundary, the 
  3.33  municipality shall not provide urban services and the land shall 
  3.34  be zoned as permanent rural or agricultural land, developed at a 
  3.35  density of no more than one dwelling unit in 40 acres.  The 
  3.36  board shall adopt and implement a comprehensive plan under this 
  4.1   subdivision within two years of determining that the county is a 
  4.2   growth county.  If the county has a previously adopted plan, the 
  4.3   board shall review, update, and adopt a revised plan and 
  4.4   official controls under this subdivision within two years. 
  4.5      Subd. 3.  [PLANNING IN OTHER NONMETROPOLITAN AREA 
  4.6   COUNTIES.] The board in a county outside the metropolitan area, 
  4.7   other than a growth county, shall adopt a comprehensive plan and 
  4.8   official controls to implement the plan. 
  4.9      Subd. 4.  [EQB PLAN.] If a board in any county outside the 
  4.10  metropolitan area does not adopt and implement a plan by August 
  4.11  1, 2002, the environmental quality board shall prepare a plan 
  4.12  and official controls to implement the plan, for the county, as 
  4.13  provided in section 116C.04, subdivision 12.  The environmental 
  4.14  quality board shall meet the requirements for coordination of 
  4.15  the plan under section 394.32, subdivision 5.  For a growth 
  4.16  county, the environmental quality board shall prepare a plan 
  4.17  reflecting urban growth boundaries.  The board shall adopt the 
  4.18  plan and the official controls prepared by the environmental 
  4.19  quality board upon receipt of the plan and controls. 
  4.20     Subd. 5.  [PERIODIC REVIEW AND UPDATE.] The board shall 
  4.21  review and update the comprehensive plan periodically, but at 
  4.22  least every ten years.  The environmental quality board shall 
  4.23  review and update the plan under this section if the county 
  4.24  board does not do so. 
  4.25     Sec. 7.  Minnesota Statutes 1996, section 394.24, 
  4.26  subdivision 1, is amended to read: 
  4.27     Subdivision 1.  [ADOPTED BY ORDINANCE.] Official controls 
  4.28  which shall further the purpose and objectives of the 
  4.29  comprehensive plan and parts thereof shall be adopted by 
  4.30  ordinance.  The board may not adopt or implement official 
  4.31  controls that are inconsistent with or conflict with the adopted 
  4.32  comprehensive plan.  If a comprehensive plan is in conflict with 
  4.33  an official control, the official control shall be brought into 
  4.34  conformance with the plan by the board.  The comprehensive plan 
  4.35  must provide guidelines for the timing and sequence of the 
  4.36  adoption of official controls to ensure planned, orderly, and 
  5.1   staged development and redevelopment consistent with the 
  5.2   comprehensive plan. 
  5.3      Sec. 8.  [394.245] [IMPACT FEES.] 
  5.4      If a board has adopted a comprehensive plan that meets the 
  5.5   requirements of this chapter and has adopted a capital 
  5.6   improvement program, it may impose impact fees as provided in 
  5.7   chapter 462D. 
  5.8      Sec. 9.  Minnesota Statutes 1996, section 394.32, is 
  5.9   amended by adding a subdivision to read: 
  5.10     Subd. 5.  [COORDINATION WITH ADJACENT 
  5.11  JURISDICTIONS.] Before adoption of a comprehensive plan, the 
  5.12  board shall coordinate its comprehensive plan with 
  5.13  municipalities within the county, with adjacent counties, and in 
  5.14  the case of counties adjacent to the metropolitan area, with the 
  5.15  metropolitan council.  The board shall not implement a plan if 
  5.16  an adjacent jurisdiction determines that implementation of the 
  5.17  plan has the potential to have a substantial adverse impact on 
  5.18  its own development plan. 
  5.19     Sec. 10.  Minnesota Statutes 1996, section 394.32, is 
  5.20  amended by adding a subdivision to read: 
  5.21     Subd. 6.  [PLANNING FOR TOWNS.] Notwithstanding the 
  5.22  provisions of subdivisions 1 to 3, the board shall include the 
  5.23  area within each town in the county in its plan, including the 
  5.24  designation of an urban growth boundary for the town if in a 
  5.25  growth county.  The county shall also prepare and adopt official 
  5.26  controls to implement the plan that shall be binding on the 
  5.27  town, except that a town may adopt official controls that 
  5.28  provide for a lower density than provided in the county's plan.  
  5.29  A county that prepares and adopts a plan and official controls 
  5.30  for a town under this subdivision may not require reimbursement 
  5.31  of expenses by the town.  This subdivision applies to plans 
  5.32  prepared by the environmental quality board under section 394.23.
  5.33     Sec. 11.  Minnesota Statutes 1996, section 462.351, is 
  5.34  amended to read: 
  5.35     462.351 [MUNICIPAL PLANNING AND DEVELOPMENT; STATEMENT OF 
  5.36  POLICY.] 
  6.1      Subdivision 1.  [FINDINGS.] The legislature finds that 
  6.2   municipalities are faced with mounting problems in providing 
  6.3   means of guiding future development of land so as to insure a 
  6.4   safer, more pleasant and more economical environment for 
  6.5   residential, commercial, industrial and public activities, to 
  6.6   preserve agricultural and other open lands, and to promote the 
  6.7   public health, safety, and general welfare.  Municipalities can 
  6.8   prepare for anticipated changes and by such preparations bring 
  6.9   about significant savings in both private and public 
  6.10  expenditures.  Municipal planning, by providing public guides to 
  6.11  future municipal action, enables other public and private 
  6.12  agencies to plan their activities in harmony with the 
  6.13  municipality's plans.  Municipal planning will assist in 
  6.14  developing lands more wisely to serve citizens more effectively, 
  6.15  will make the provision of public services less costly, and will 
  6.16  achieve a more secure tax base.  It is the purpose of sections 
  6.17  462.351 to 462.364 to provide municipalities, in a single body 
  6.18  of law, with the necessary powers and a uniform procedure for 
  6.19  adequately conducting and implementing municipal planning. 
  6.20     Subd. 2.  [GOALS.] The goals of comprehensive planning are 
  6.21  to: 
  6.22     (1) guide change through planning and develop a community 
  6.23  vision for future development that is sustainable; 
  6.24     (2) coordinate planning to ensure compatibility of one 
  6.25  community's development with development of neighboring 
  6.26  communities; 
  6.27     (3) ensure broad citizen participation in planning and 
  6.28  decision making; 
  6.29     (4) respect and foster diversity among communities; 
  6.30     (5) use integrated information as a foundation for plans 
  6.31  and decisions; 
  6.32     (6) consider the long-term social, economic, and 
  6.33  environmental costs and benefits of development; 
  6.34     (7) pay the full environmental, social, and economic costs 
  6.35  of new development, including infrastructure costs such as 
  6.36  transportation, sewers and wastewater treatment, water, schools, 
  7.1   recreation, and open space; 
  7.2      (8) use natural resources and public funds efficiently by 
  7.3   directing growth towards areas with existing infrastructure and 
  7.4   services, and by encouraging development that is appropriate for 
  7.5   the ecology and character of the community; 
  7.6      (9) preserve features of local, regional, and statewide 
  7.7   significance, such as farmland, forests, open space, and unique 
  7.8   natural, historic, cultural, scenic, and recreational areas; 
  7.9      (10) live within our means; 
  7.10     (11) foster livable communities with safe, 
  7.11  pedestrian-friendly development that integrates a diverse mix of 
  7.12  housing and jobs, public transit, businesses, public spaces, and 
  7.13  recreational areas; and 
  7.14     (12) enhance Minnesota's economic strength and 
  7.15  competitiveness. 
  7.16     Sec. 12.  Minnesota Statutes 1996, section 462.352, is 
  7.17  amended by adding a subdivision to read: 
  7.18     Subd. 18.  [GROWTH COUNTY.] "Growth county" means a county 
  7.19  outside the metropolitan area, as defined in section 473.121, 
  7.20  subdivision 2, in which the population is estimated by the state 
  7.21  demographer to have a growth rate for the most recent five-year 
  7.22  period for which data is available that is at least one 
  7.23  percentage point higher than the average growth rate for all 
  7.24  counties in the state during the same period, and in which the 
  7.25  county population density is greater than 50 people per square 
  7.26  mile. 
  7.27     Sec. 13.  [462.3535] [PLANNING REQUIRED.] 
  7.28     Subdivision 1.  [CITIES IN GROWTH COUNTIES; URBAN GROWTH 
  7.29  BOUNDARIES.] A statutory or home rule charter city in a growth 
  7.30  county shall prepare and adopt a comprehensive municipal plan, 
  7.31  official controls to implement the plan, and a capital 
  7.32  improvement program.  The plan must establish an urban growth 
  7.33  boundary for the urbanized area, within which there is a 
  7.34  sufficient supply of developable land for at least a prospective 
  7.35  20-year period.  Within the urban growth boundary, the city 
  7.36  shall plan for the staged provision of urban services, 
  8.1   including, but not limited to, water, wastewater collection and 
  8.2   treatment, and transportation.  Outside the urban growth 
  8.3   boundary, the city shall not provide urban services and the land 
  8.4   shall be maintained as permanent rural or agricultural land, 
  8.5   developed at a density of not more than one dwelling unit in 40 
  8.6   acres.  The city shall establish the urban growth boundary in 
  8.7   coordination with the county.  
  8.8      Subd. 2.  [OTHER CITIES.] Outside the metropolitan area and 
  8.9   any growth county, a statutory or home rule charter city shall 
  8.10  adopt a comprehensive plan and official controls to implement 
  8.11  the plan that meets the requirements of this chapter. 
  8.12     Subd. 3.  [EQB PLAN.] If a city does not adopt and 
  8.13  implement a plan by August 1, 2002, the environmental quality 
  8.14  board shall prepare a plan and official controls to implement 
  8.15  the plan for the city, as provided in section 116C.04, 
  8.16  subdivision 12.  The environmental quality board shall meet the 
  8.17  requirements for coordination of the plan under subdivision 4 
  8.18  and for review and updating of plans as required under section 
  8.19  462.355, subdivision 1a.  For a city in a growth county, the 
  8.20  environmental quality board shall establish an urban growth 
  8.21  boundary.  The city shall adopt the plan and the official 
  8.22  controls prepared by the environmental quality board upon 
  8.23  receipt of the plan and controls. 
  8.24     Subd. 4.  [COORDINATION WITH ADJACENT 
  8.25  JURISDICTIONS.] Before adoption of a comprehensive municipal 
  8.26  plan, the city shall coordinate its comprehensive municipal plan 
  8.27  with other municipalities within the county, with the county, 
  8.28  with other adjacent municipalities or counties, and in the case 
  8.29  of cities adjacent to the metropolitan area, with the 
  8.30  metropolitan council.  The city shall not implement the plan if 
  8.31  an adjacent jurisdiction determines that implementation of the 
  8.32  plan has the potential to have an adverse impact on its own 
  8.33  development plan.  If a city plans for growth beyond its current 
  8.34  boundaries, the city shall submit its proposed comprehensive 
  8.35  municipal plan and proposed urban growth boundary to the county 
  8.36  for review and approval before adopting the plan. 
  9.1      Subd. 5.  [DEADLINE FOR INITIAL PLANS.] A statutory or home 
  9.2   rule charter city required to adopt a comprehensive municipal 
  9.3   plan under this section shall do so within two years of 
  9.4   determining that this section applies to the city.  A city 
  9.5   required to adopt a comprehensive municipal plan under this 
  9.6   section that has a previously adopted plan shall review, update, 
  9.7   coordinate the plan with adjacent jurisdictions, and adopt the 
  9.8   plan within two years of determining that this section applies 
  9.9   to the city. 
  9.10     Sec. 14.  Minnesota Statutes 1996, section 462.355, 
  9.11  subdivision 1a, is amended to read: 
  9.12     Subd. 1a.  [PLAN UPDATE BY METROPOLITAN MUNICIPALITIES.] 
  9.13  Each municipality in the metropolitan area, as defined in 
  9.14  section 473.121, subdivision 2, shall review and update its 
  9.15  comprehensive plan and fiscal devices and official controls as 
  9.16  provided in section 473.864, subdivision 2.  Each statutory or 
  9.17  home rule charter city outside the metropolitan area shall 
  9.18  review and update its comprehensive plan and official controls 
  9.19  periodically, but at least every ten years. 
  9.20     Sec. 15.  Minnesota Statutes 1996, section 462.357, 
  9.21  subdivision 2, is amended to read: 
  9.22     Subd. 2.  [GENERAL REQUIREMENTS.] At any time after the 
  9.23  adoption of a land use plan for the municipality, the planning 
  9.24  agency, for the purpose of carrying out the policies and goals 
  9.25  of the land use plan, may prepare a proposed zoning ordinance 
  9.26  and submit it to the governing body with its recommendations for 
  9.27  adoption.  Subject to the requirements of subdivisions 3, 4, and 
  9.28  5, the governing body may adopt and amend a zoning ordinance by 
  9.29  a two-thirds vote of all its members.  If the comprehensive 
  9.30  municipal plan is in conflict with the zoning ordinance, the 
  9.31  zoning ordinance supersedes the plan.  The governing body may 
  9.32  not adopt or implement official controls that are inconsistent 
  9.33  with or conflict with the adopted comprehensive municipal plan.  
  9.34  If a comprehensive municipal plan is in conflict with an 
  9.35  official control, the official control shall be brought into 
  9.36  conformance with the plan by the governing body.  The plan must 
 10.1   provide guidelines for the timing and sequence of the adoption 
 10.2   of official controls to ensure planned, orderly, and staged 
 10.3   development and redevelopment consistent with the plan. 
 10.4      Sec. 16.  [462.3593] [IMPACT FEES.] 
 10.5      A statutory or home rule charter city that has adopted a 
 10.6   comprehensive municipal plan and capital improvement program, as 
 10.7   provided in this chapter, may impose impact fees as provided in 
 10.8   chapter 462D. 
 10.9      Sec. 17. [462D.01] [IMPACT FEES; DEFINITIONS.] 
 10.10     Subdivision 1.  [APPLICATION.] The terms defined in this 
 10.11  section have the meanings given them for the purposes of this 
 10.12  chapter. 
 10.13     Subd. 2.  [APPLICABLE PLANNING LAW.] "Applicable planning 
 10.14  law" means chapter 394 for counties, and section 462.351 to 
 10.15  462.364 for statutory and home rule charter cities and towns. 
 10.16     Subd. 3.  [IMPACT FEE.] "Impact fee" means a fee imposed on 
 10.17  new development by a local government, pursuant to an ordinance, 
 10.18  to pay for capital improvements necessitated by the new 
 10.19  development that will primarily benefit the new development. 
 10.20     Subd. 4.  [LOCAL GOVERNMENT.] "Local government" means a 
 10.21  statutory or home rule charter city, town, or a county. 
 10.22     Subd. 5.  [METROPOLITAN AREA.] "Metropolitan area" is as 
 10.23  defined in section 473.121, subdivision 2. 
 10.24     Sec. 18.  [462D.02] [AUTHORITY.] 
 10.25     A local government may impose impact fees by ordinance as 
 10.26  provided for by other law. 
 10.27     Sec. 19.  [462D.03] [PERMITTED FEES.] 
 10.28     A local ordinance shall specify the purposes for which 
 10.29  impact fees may be imposed on new development.  A local 
 10.30  ordinance may provide for fees to be imposed for any of the 
 10.31  following purposes: 
 10.32     (1) transportation infrastructure, including public 
 10.33  transit; 
 10.34     (2) water supply production and distribution; 
 10.35     (3) wastewater collection and treatment facilities; 
 10.36     (4) school facilities; 
 11.1      (5) parks, open space, and recreation facilities; 
 11.2      (6) public safety facilities, including, but not limited 
 11.3   to, police, fire, and emergency medical and rescue facilities; 
 11.4      (7) stormwater control and treatment; 
 11.5      (8) solid waste collection and disposal; and 
 11.6      (9) lighting. 
 11.7      Sec. 20.  [462D.04] [FORMULA; CONTRIBUTIONS.] 
 11.8      A local impact fee ordinance shall specify the formula by 
 11.9   which fees will be imposed.  The formula may include in the 
 11.10  costs to be recovered the local government's administrative, 
 11.11  legal, and other expenses related to the impact fees.  The 
 11.12  formula for determining impact fees for a particular development 
 11.13  must provide for credits off-setting part or all of the fees 
 11.14  that reflect what the new development may have contributed in 
 11.15  the form of taxes, other fees, dedications, or other 
 11.16  contributions, towards the improvement for which the impact fees 
 11.17  are imposed. 
 11.18     Sec. 21.  [462D.05] [ADVISORY COMMITTEE.] 
 11.19     A local government that determines to use impact fees shall 
 11.20  establish an impact fee advisory committee made up of 
 11.21  representatives of affected interests to assist in the 
 11.22  development of the ordinance. 
 11.23     Sec. 22.  [462D.06] [EXEMPTIONS.] 
 11.24     An impact fee ordinance may provide exemptions from the 
 11.25  impact fees for projects providing low- and moderate-income 
 11.26  housing if the need for such housing is identified in the 
 11.27  comprehensive plan. 
 11.28     Sec. 23.  [462D.07] [REFUND OF UNUSED FEES.] 
 11.29     A local government may accumulate impact fees for up to six 
 11.30  years.  The ordinance may provide for a one-time extension for 
 11.31  five years more.  Fees not used in the time required must be 
 11.32  refunded to the current owners of the property on which the fees 
 11.33  were imposed in proportion to the amount paid. 
 11.34     Sec. 24.  [462D.08] [NOTICE; RECORDING.] 
 11.35     All impact fees paid or due shall be recorded and a 
 11.36  purchaser of real property shall be notified of any impact fees 
 12.1   paid or due. 
 12.2      Sec. 25.  [MODEL IMPACT FEE ORDINANCE.] 
 12.3      The environmental quality board shall develop a model 
 12.4   impact fee ordinance for local governments by August 1, 1998. 
 12.5      Sec. 26.  [APPROPRIATION.] 
 12.6      $....... is appropriated from the general fund to the 
 12.7   environmental quality board for the purposes of making grants to 
 12.8   local governmental units outside the metropolitan area for 
 12.9   planning required by this act.