1.1 	A bill for an act
1.2 	relating to local government; broadening the application of city special service 
1.3 	districts to include residential and mixed uses;amending Minnesota Statutes 
1.4 	2012, sections 428A.08; 428A.09, subdivision 2; Minnesota Statutes 2013 
1.5 	Supplement, section 428A.02, subdivision 1; repealing Minnesota Statutes 2012, 
1.6 	section 428A.01, subdivision 6.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2013 Supplement, section 428A.02, subdivision 1, 
1.9 	is amended to read:
1.10 		Subdivision 1.Ordinance. The governing body of a city may adopt an ordinance 
1.11 	establishing a special service district. ~~Only property that is classified under section 273.13~~ 
1.12 	~~and used for commercial, industrial, or public utility purposes, or is vacant land zoned or~~ 
1.13 	~~designated on a land use plan for commercial or industrial use and located in the special~~ 
1.14 	~~service district, may be subject to the charges imposed by the city on the special service~~ 
1.15 	~~district. Other types of property may be included within the boundaries of the special~~ 
1.16 	~~service district but are not subject to the levies or charges imposed by the city on the~~ 
1.17 	~~special service district. If 50 percent or more of the estimated market value of a parcel of~~ 
1.18 	~~property is classified under section 273.13 as commercial, industrial, or vacant land zoned~~ 
1.19 	~~or designated on a land use plan for commercial or industrial use, or public utility for the~~ 
1.20 	~~current assessment year, then the entire taxable market value of the property is subject to a~~ 
1.21 	~~service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10.~~
1.22 	 The ordinance shall describe with particularity the area within the city to be included in 
1.23 	the district and the special services to be furnished in the district. The ordinance may not 
1.24 	be adopted until after a public hearing has been held on the question. Notice of the hearing 
1.25 	shall include the time and place of hearing, a map showing the boundaries of the proposed 
2.1 	district, and a statement that all persons owning property in the proposed district that 
2.2 	would be subject to a service charge will be given opportunity to be heard at the hearing. 
2.3 	Within 30 days after adoption of the ordinance under this subdivision, the governing body 
2.4 	shall send a copy of the ordinance to the commissioner of revenue.

2.5 	Sec. 2. Minnesota Statutes 2012, section 428A.08, is amended to read:
2.6 	428A.08 PETITION REQUIRED.
2.7 	No action may be taken under section 428A.02 or 428A.03, unless ~~owners of 25~~ 
2.8 	~~percent or more of the land area of property that would be subject to service charges in the~~ 
2.9 	~~proposed special service district and either~~: (1) owners of 25 percent or more of the net 
2.10 	tax capacity of property that would be subject to a proposed service charge, based on net 
2.11 	tax capacity; or (2) owners, individuals, and business organizations subject to 25 percent 
2.12 	or more of a proposed service charge based on other than net tax capacity file a petition 
2.13 	requesting a public hearing on the proposed action with the city clerk. If the boundaries of 
2.14 	a proposed district are changed or the land area or net tax capacity subject to a service 
2.15 	charge or the individuals or business organizations subject to a service charge are changed 
2.16 	after the public hearing, a petition meeting the requirements of this section must be filed 
2.17 	with the city clerk before the ordinance establishing the district or resolution imposing 
2.18 	the service charge may become effective.

2.19 	Sec. 3. Minnesota Statutes 2012, section 428A.09, subdivision 2, is amended to read:
2.20 		Subd. 2.Requirements for veto. If owners of 35 percent or more of ~~the land area~~
2.21 	 value in the district subject to the service charge based on net tax capacity or owners, 
2.22 	individuals, and business organizations subject to 35 percent or more of the service 
2.23 	charges to be imposed in the district, file an objection to the ordinance adopted by the city 
2.24 	under section 428A.02 with the city clerk before the effective date of the ordinance, the 
2.25 	ordinance does not become effective. If owners of 35 percent or more of ~~the land area~~
2.26 	 value subject to the service charge based on net tax capacity or owners of 35 percent or 
2.27 	more of the net tax capacity subject to the service charge based on net tax capacity file an 
2.28 	objection to the resolution adopted imposing a service charge based on net tax capacity 
2.29 	under section 428A.03 with the city clerk before the effective date of the resolution, the 
2.30 	resolution does not become effective. If owners, individuals, and business organizations 
2.31 	subject to 35 percent or more of the service charges to be imposed in the district file an 
2.32 	objection to the resolution adopted imposing a service charge on a basis other than net 
2.33 	tax capacity under section 428A.03 with the city clerk before the effective date of the 
2.34 	resolution, the resolution does not become effective. In the event of a veto, no district 
3.1 	shall be established during the current calendar year and until a petition meeting the 
3.2 	qualifications set forth in this subdivision for a veto has been filed.

3.3 	Sec. 4.  REPEALER.
 3.4 	Minnesota Statutes 2012, section 428A.01, subdivision 6, is repealed.