as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; abolishing the office of 1.3 strategic and long-range planning; eliminating certain 1.4 functions; transferring certain functions to other 1.5 state or local entities; amending Minnesota Statutes 1.6 2002, sections 4.045; 4A.02; 4A.03; 4A.04; 4A.05; 1.7 14.03, subdivision 2; 15A.0815, subdivision 2; 1.8 40A.121; 43A.08, subdivision 1; 115A.9651, subdivision 1.9 5; 116.182, subdivision 3a; 116C.03, subdivisions 2, 1.10 4, 5; 116C.712, subdivisions 3, 5; 124D.23, 1.11 subdivision 9; 145.9266, subdivision 6; 272.67, 1.12 subdivision 1; 276A.09; 365.46, subdivision 2; 379.05; 1.13 394.232, subdivisions 1, 2, 6, 7; 412.021, subdivision 1.14 1; 412.091; 414.01, subdivisions 1b, 5, 8, 11, 12, 14, 1.15 16, 17; 414.011, by adding a subdivision; 414.012; 1.16 414.02; 414.031; 414.0325, subdivisions 1, 2, 3, 4, 1.17 4a; 414.033, subdivisions 3, 5, 6, 7, 10; 414.0335; 1.18 414.041; 414.06; 414.061; 414.063; 414.067, 1.19 subdivisions 1, 3; 414.07, subdivision 2; 414.08; 1.20 414.09; 414.12; 462.3535, subdivisions 1, 5, 8, 10; 1.21 473.129, subdivision 5; 473.1455; 473F.13, subdivision 1.22 1; 473H.14; 477A.014, subdivision 4; 572A.01; 1.23 572A.015; 572A.02, subdivisions 5, 6; 572A.03, 1.24 subdivisions 1, 2; repealing Minnesota Statutes 2002, 1.25 sections 4A.01; 4A.055; 4A.06; 4A.07; 394.232, 1.26 subdivision 5; 414.01, subdivisions 1, 7a, 10; 1.27 414.011, subdivision 11; 414.051; 462.3535, 1.28 subdivision 9. 1.29 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.30 ARTICLE 1 1.31 OFFICE ABOLISHED 1.32 Section 1. [OFFICE ABOLISHED.] 1.33 The office of strategic and long-range planning is 1.34 abolished. The position of director of the office is 1.35 abolished. Certain functions of the office are transferred as 1.36 provided in articles 2 and 3. 1.37 Sec. 2. [EFFECTIVE DATE.] 2.1 Section 1 is effective July 1, 2003. 2.2 ARTICLE 2 2.3 TRANSFER OF FUNCTIONS; CONFORMING CHANGES 2.4 Section 1. Minnesota Statutes 2002, section 4.045, is 2.5 amended to read: 2.6 4.045 [CHILDREN'S CABINET.] 2.7 The children's cabinet shall consist of the commissioners 2.8 of children, families, and learning, human services, economic 2.9 security, public safety, corrections, finance, health, 2.10 administration, housing finance agency, and transportation, and2.11the director of the office of strategic and long-range planning. 2.12 The governor shall designate one member to serve as cabinet 2.13 chair. The chair is responsible for ensuring that the duties of 2.14 the children's cabinet are performed. 2.15 Sec. 2. Minnesota Statutes 2002, section 4A.02, is amended 2.16 to read: 2.17 4A.02 [STATE DEMOGRAPHER.] 2.18 (a) Thedirectorcommissioner of administration shall 2.19 appoint a state demographer. The demographer must be 2.20 professionally competent in demography and must possess 2.21 demonstrated ability based upon past performance. 2.22 (b) The demographer shall: 2.23 (1) continuously gather and develop demographic data 2.24 relevant to the state; 2.25 (2) design and test methods of research and data 2.26 collection; 2.27 (3) periodically prepare population projections for the 2.28 state and designated regions and periodically prepare 2.29 projections for each county or other political subdivision of 2.30 the state as necessary to carry out the purposes of this 2.31 section; 2.32 (4) review, comment on, and prepare analysis of population 2.33 estimates and projections made by state agencies, political 2.34 subdivisions, other states, federal agencies, or nongovernmental 2.35 persons, institutions, or commissions; 2.36 (5) serve as the state liaison with the United States 3.1 Bureau of the Census, coordinate state and federal demographic 3.2 activities to the fullest extent possible, and aid the 3.3 legislature in preparing a census data plan and form for each 3.4 decennial census; 3.5 (6) compile an annual study of population estimates on the 3.6 basis of county, regional, or other political or geographical 3.7 subdivisions as necessary to carry out the purposes of this 3.8 section and section 4A.03; 3.9 (7) by January 1 of each year, issue a report to the 3.10 legislature containing an analysis of the demographic 3.11 implications of the annual population study and population 3.12 projections; 3.13 (8) prepare maps for all counties in the state, all 3.14 municipalities with a population of 10,000 or more, and other 3.15 municipalities as needed for census purposes, according to scale 3.16 and detail recommended by the United States Bureau of the 3.17 Census, with the maps of cities showing precinct boundaries; 3.18 (9) prepare an estimate of population and of the number of 3.19 households for each governmental subdivision for which the 3.20 metropolitan council does not prepare an annual estimate, and 3.21 convey the estimates to the governing body of each political 3.22 subdivision by May 1 of each year; 3.23 (10) direct, under section 414.01, subdivision 14, and 3.24 certify population and household estimates of annexed or 3.25 detached areas of municipalities or towns after being notified 3.26 of the order or letter of approvalby the Minnesota municipal3.27boardunder chapter 414; and 3.28 (11) prepare, for any purpose for which a population 3.29 estimate is required by law or needed to implement a law, a 3.30 population estimate of a municipality or town whose population 3.31 is affected by action under section 379.02 or 414.01, 3.32 subdivision 14. 3.33 (c) A governing body may challenge an estimate made under 3.34 paragraph (b) by filing their specific objections in writing 3.35 with the state demographer by June 10. If the challenge does 3.36 not result in an acceptable estimate by June 24, the governing 4.1 body may have a special census conducted by the United States 4.2 Bureau of the Census. The political subdivision must notify the 4.3 state demographer by July 1 of its intent to have the special 4.4 census conducted. The political subdivision must bear all costs 4.5 of the special census. Results of the special census must be 4.6 received by the state demographer by the next April 15 to be 4.7 used in that year's May 1 estimate to the political subdivision 4.8 under paragraph (b). 4.9 Sec. 3. Minnesota Statutes 2002, section 4A.03, is amended 4.10 to read: 4.11 4A.03 [POPULATION ESTIMATES AND PROJECTIONS; SUBMISSION BY 4.12 STATE AGENCIES.] 4.13 Each state agency shall submit to thedirectorcommissioner 4.14 of administration for comment all population estimates and 4.15 projections prepared by it before: 4.16 (1) submitting the estimates and projections to the 4.17 legislature or the federal government to obtain approval of 4.18 grants; 4.19 (2) the issuance of bonds based upon those estimates and 4.20 projections; or 4.21 (3) releasing a plan based upon the estimates and 4.22 projections. 4.23 Sec. 4. Minnesota Statutes 2002, section 4A.04, is amended 4.24 to read: 4.25 4A.04 [COOPERATIVE CONTRACTS.] 4.26 (a) Thedirectorcommissioner of administration may apply 4.27 for, receive, and expend money from municipal, county, regional, 4.28 and other planning agencies; apply for, accept, and disburse 4.29 grants and other aids for planning purposes from the federal 4.30 government and from other public or private sources; and may 4.31 enter into contracts with agencies of the federal government, 4.32 local governmental units, the University of Minnesota, and other 4.33 educational institutions, and private persons as necessary to 4.34 perform the director's duties. Contracts made pursuant to this 4.35 section are not subject to the provisions of chapter 16C, as 4.36 they relate to competitive bidding. 5.1 (b) The director may apply for, receive, and expend money 5.2 made available from federal sources or other sources for the 5.3 purposes of carrying out the duties and responsibilities of the 5.4 director relating to local and urban affairs. 5.5 (c) All money received by the director pursuant to this 5.6 section shall be deposited in the state treasury and is 5.7 appropriated to the director for the purposes for which the 5.8 money has been received. The money shall not cancel and is 5.9 available until expended. 5.10 Sec. 5. Minnesota Statutes 2002, section 4A.05, is amended 5.11 to read: 5.12 4A.05 [LAND MANAGEMENT INFORMATION CENTER.] 5.13 Subdivision 1. [PURPOSE.] The purpose of the land 5.14 management information center is to foster integration of 5.15 environmental information and provide services in computer 5.16 mapping and graphics, environmental analysis, and small systems 5.17 development. Thedirectorcommissioner of administration, 5.18 through the center, shall periodically study land use and 5.19 natural resources on the basis of county, regional, and other 5.20 political subdivisions. 5.21 Subd. 1a. [STATEWIDE NITRATE DATABASE.] The 5.22directorcommissioner, through the center, shall maintain a 5.23 statewide nitrate database containing the data described in 5.24 section 103A.403. 5.25 Subd. 2. [FEES.] Thedirectorcommissioner shall set fees 5.26 under section 16A.1285 reflecting the actual costs of providing 5.27 the center's information products and services to clients. Fees 5.28 collected must be deposited in the state treasury and credited 5.29 to the land management information center revolving account. 5.30 Money in the account is appropriated to thedirector5.31 commissioner for operation of the land management information 5.32 system, including the cost of services, supplies, materials, 5.33 labor, and equipment, as well as the portion of the general 5.34 support costs and statewide indirect costs of the office that is 5.35 attributable to the land management information system. 5.36 Thedirectorcommissioner may require a state agency to make an 6.1 advance payment to the revolving fund sufficient to cover the 6.2 agency's estimated obligation for a period of 60 days or more. 6.3 If the revolving fund is abolished or liquidated, the total net 6.4 profit from operations must be distributed to the funds from 6.5 which purchases were made. The amount to be distributed to each 6.6 fund must bear to the net profit the same ratio as the total 6.7 purchases from each fund bear to the total purchases from all 6.8 the funds during a period of time that fairly reflects the 6.9 amount of net profit each fund is entitled to receive under this 6.10 distribution. 6.11 Sec. 6. Minnesota Statutes 2002, section 15A.0815, 6.12 subdivision 2, is amended to read: 6.13 Subd. 2. [GROUP I SALARY LIMITS.] The salaries for 6.14 positions in this subdivision may not exceed 95 percent of the 6.15 salary of the governor: 6.16 Commissioner of administration; 6.17 Commissioner of agriculture; 6.18 Commissioner of children, families, and learning; 6.19 Commissioner of commerce; 6.20 Commissioner of corrections; 6.21 Commissioner of economic security; 6.22 Commissioner of employee relations; 6.23 Commissioner of finance; 6.24 Commissioner of health; 6.25 Executive director, higher education services office; 6.26 Commissioner, housing finance agency; 6.27 Commissioner of human rights; 6.28 Commissioner of human services; 6.29 Executive director, state board of investment; 6.30 Commissioner of labor and industry; 6.31 Commissioner of natural resources; 6.32Director of office of strategic and long-range planning;6.33 Commissioner, pollution control agency; 6.34 Commissioner of public safety; 6.35 Commissioner of revenue; 6.36 Commissioner of trade and economic development; 7.1 Commissioner of transportation; and 7.2 Commissioner of veterans affairs. 7.3 Sec. 7. Minnesota Statutes 2002, section 43A.08, 7.4 subdivision 1, is amended to read: 7.5 Subdivision 1. [UNCLASSIFIED POSITIONS.] Unclassified 7.6 positions are held by employees who are: 7.7 (1) chosen by election or appointed to fill an elective 7.8 office; 7.9 (2) heads of agencies required by law to be appointed by 7.10 the governor or other elective officers, and the executive or 7.11 administrative heads of departments, bureaus, divisions, and 7.12 institutions specifically established by law in the unclassified 7.13 service; 7.14 (3) deputy and assistant agency heads and one confidential 7.15 secretary in the agencies listed in subdivision 1aand in the7.16office of strategic and long-range planning; 7.17 (4) the confidential secretary to each of the elective 7.18 officers of this state and, for the secretary of state, state 7.19 auditor, and state treasurer, an additional deputy, clerk, or 7.20 employee; 7.21 (5) intermittent help employed by the commissioner of 7.22 public safety to assist in the issuance of vehicle licenses; 7.23 (6) employees in the offices of the governor and of the 7.24 lieutenant governor and one confidential employee for the 7.25 governor in the office of the adjutant general; 7.26 (7) employees of the Washington, D.C., office of the state 7.27 of Minnesota; 7.28 (8) employees of the legislature and of legislative 7.29 committees or commissions; provided that employees of the 7.30 legislative audit commission, except for the legislative 7.31 auditor, the deputy legislative auditors, and their confidential 7.32 secretaries, shall be employees in the classified service; 7.33 (9) presidents, vice-presidents, deans, other managers and 7.34 professionals in academic and academic support programs, 7.35 administrative or service faculty, teachers, research 7.36 assistants, and student employees eligible under terms of the 8.1 federal Economic Opportunity Act work study program in the 8.2 Perpich center for arts education and the Minnesota state 8.3 colleges and universities, but not the custodial, clerical, or 8.4 maintenance employees, or any professional or managerial 8.5 employee performing duties in connection with the business 8.6 administration of these institutions; 8.7 (10) officers and enlisted persons in the national guard; 8.8 (11) attorneys, legal assistants, and three confidential 8.9 employees appointed by the attorney general or employed with the 8.10 attorney general's authorization; 8.11 (12) judges and all employees of the judicial branch, 8.12 referees, receivers, jurors, and notaries public, except 8.13 referees and adjusters employed by the department of labor and 8.14 industry; 8.15 (13) members of the state patrol; provided that selection 8.16 and appointment of state patrol troopers must be made in 8.17 accordance with applicable laws governing the classified 8.18 service; 8.19 (14) chaplains employed by the state; 8.20 (15) examination monitors and intermittent training 8.21 instructors employed by the departments of employee relations 8.22 and commerce and by professional examining boards and 8.23 intermittent staff employed by the technical colleges for the 8.24 administration of practical skills tests and for the staging of 8.25 instructional demonstrations; 8.26 (16) student workers; 8.27 (17) executive directors or executive secretaries appointed 8.28 by and reporting to any policy-making board or commission 8.29 established by statute; 8.30 (18) employees unclassified pursuant to other statutory 8.31 authority; 8.32 (19) intermittent help employed by the commissioner of 8.33 agriculture to perform duties relating to pesticides, 8.34 fertilizer, and seed regulation; 8.35 (20) the administrators and the deputy administrators at 8.36 the state academies for the deaf and the blind; and 9.1 (21) chief executive officers in the department of human 9.2 services. 9.3 Sec. 8. Minnesota Statutes 2002, section 115A.9651, 9.4 subdivision 5, is amended to read: 9.5 Subd. 5. [LISTED METALS ADVISORY COUNCIL.] (a) The purpose 9.6 of the listed metals advisory council is to promotesustainable9.7development, as defined in section 4A.07, and thepublic health 9.8 and welfare and protect the environment and the state's economy 9.9 by removing listed metals from specified products so that the 9.10 listed metals do not contribute to bioaccumulation and burden 9.11 taxpayers with unnecessary disposal costs. 9.12 (b) By July 1, 1997, the commissioner shall appoint a 9.13 listed metals advisory council consisting of the following five 9.14 permanent members: a chair, a representative of government, a 9.15 representative of business, a representative of a citizens' 9.16 organization, and a representative from a relevant field of 9.17 academia. Temporary members of the council shall be appointed 9.18 by the commissioner under paragraph (f). No permanent or 9.19 temporary member of the council who is an employee of a 9.20 manufacturer or user of a specified product may sit in 9.21 consideration of that product. 9.22 (c) The council shall have the following duties: 9.23 (1) review reports submitted under subdivisions 6, 7, and 8 9.24 and provide advice to the commissioner pursuant to paragraph 9.25 (d); and 9.26 (2) report to the commissioner on October 1, 2000, and 9.27 October 1, 2005, on any reasonable measures that would allow the 9.28 criteria in paragraph (d) to be met with regard to products 9.29 reviewed based on information obtained during the review of 9.30 products. 9.31 (d) The council's advice to the commissioner under 9.32 paragraph (c), clause (1), shall be based on an evaluation of 9.33 the environmental impact of the product and the ability of the 9.34 manufacturer or user to reduce or eliminate the listed metal. 9.35 Before making a recommendation that the commissioner take action 9.36 under subdivision 9, the council must conclude that: 10.1 (1) there is an alternative to the specified product that 10.2 does not contain the listed metal that performs the same 10.3 technical function, is commercially available, and is 10.4 economically practicable; and 10.5 (2) replacement of the product with the alternative will 10.6 result in an environmental benefit in the state. 10.7 (e) A recommendation that the commissioner take action 10.8 under subdivision 9 shall include the information required by 10.9 section 14.131 to the extent the council, through reasonable 10.10 effort, can ascertain this information. 10.11 (f) Before the council evaluates a specific product or 10.12 group of products, the commissioner shall appoint temporary 10.13 council members in an even number up to six. The commissioner 10.14 shall seek to appoint as temporary members persons having 10.15 expertise on the product or group of products under review as 10.16 well as persons representing community interests. The temporary 10.17 members shall be voting members of the council on all matters 10.18 related to consideration of the product or group of products. 10.19 The terms of the temporary members shall expire when the council 10.20 has completed its review of the product or group of products and 10.21 has submitted its recommendation to the commissioner pursuant to 10.22 this subdivision. 10.23 (g) The permanent members of the council must prioritize 10.24 the council's review of a specific product or group of products 10.25 by publishing a notice in the State Register by October 1, 1998, 10.26 identifying those specified products, or groups of products, 10.27 which will be reviewed by July 1, 2000. By October 1, 2000, the 10.28 council shall publish a notice in the State Register identifying 10.29 those specified products, or groups of products, which will be 10.30 reviewed by July 1, 2005. The council shall consider potential 10.31 environmental impacts in prioritizing its review. The council 10.32 shall notify manufacturers and users who have submitted product 10.33 review reports of the appropriate review schedule. A 10.34 manufacturer who has submitted a product review report may 10.35 request an expedited review by the council. 10.36 (h) The commissioner shall provide staff and administrative 11.1 services to the council. Compensation and removal of council 11.2 members shall be as provided in section 15.059, subdivisions 3 11.3 and 4. The council shall dissolve on June 30, 2006. 11.4 Sec. 9. Minnesota Statutes 2002, section 116.182, 11.5 subdivision 3a, is amended to read: 11.6 Subd. 3a. [NOTIFICATION OF OTHER GOVERNMENT UNITS.] In 11.7 addition to other applicable statutes or rules that are required 11.8 to receive financial assistance consistent with this 11.9 subdivision, the commissioner may not approve or certify a 11.10 project to the public facilities authority for wastewater 11.11 financial assistance unless the following requirements are met: 11.12 (1) prior to the initiation of the public facilities 11.13 planning process for a new wastewater treatment system, the 11.14 project proposer gives written notice to all municipalities 11.15 within ten miles of the proposed project service area, including 11.16 the county in which the project is located,the office of11.17strategic and long-range planning,and the pollution control 11.18 agency. The notice shall state the proposer's intent to begin 11.19 the facilities planning process and provide a description of the 11.20 need for the proposed project. The notice also shall request a 11.21 response within 30 days of the notice date from all government 11.22 units who wish to receive and comment on the future facilities 11.23 plan for the proposed project; 11.24 (2) during development of the facility plan's analysis of 11.25 service alternatives, the project proposer must request 11.26 information from all municipalities and sanitary districts which 11.27 have existing systems that have current capacity to meet the 11.28 proposer's needs or can be upgraded to meet those needs. At a 11.29 minimum, the proposer must notify in writing those 11.30 municipalities and sanitary districts whose corporate limits or 11.31 boundaries are within three miles of the proposed project's 11.32 service area; 11.33 (3) 60 days prior to the municipality's public hearing on 11.34 the facilities plan, a copy of the draft facilities plan and 11.35 notice of the public hearing on the facilities plan must be 11.36 given to the local government units who previously expressed 12.1 interest in the proposed project under clause (1); 12.2 (4) for a proposed project located or proposed to be 12.3 located outside the corporate limits of a city, the affected 12.4 county has certified to the agency that the proposed project is 12.5 consistent with the applicable county comprehensive plan and 12.6 zoning and subdivision regulations; and 12.7 (5) copies of the notifications required under clauses (1) 12.8 and (2), as well as the certification from the county and a 12.9 summary of the comments received, must be included by the 12.10 municipality in the submission of its facilities plan to the 12.11 pollution control agency, along with other required items as 12.12 specified in the agency's rules. 12.13 This subdivision does not apply to the western Lake 12.14 Superior sanitary district or the metropolitan council. 12.15 Sec. 10. Minnesota Statutes 2002, section 116C.03, 12.16 subdivision 2, is amended to read: 12.17 Subd. 2. [MEMBERSHIP.] The members of the board arethe12.18director of the office of strategic and long-range planning,the 12.19 commissioner of commerce, the commissioner of the pollution 12.20 control agency, the commissioner of natural resources, the 12.21 director of the office of environmental assistance, the 12.22 commissioner of agriculture, the commissioner of health, the 12.23 commissioner of trade and economic development, the commissioner 12.24 of transportation, the chair of the board of water and soil 12.25 resources, and a representative of the governor's office 12.26 designated by the governor. The governor shall appoint five 12.27 members from the general public to the board, subject to the 12.28 advice and consent of the senate. At least two of the five 12.29 public members must have knowledge of and be conversant in water 12.30 management issues in the state. Notwithstanding the provisions 12.31 of section 15.06, subdivision 6, members of the board may not 12.32 delegate their powers and responsibilities as board members to 12.33 any other person. 12.34 Sec. 11. Minnesota Statutes 2002, section 116C.03, 12.35 subdivision 4, is amended to read: 12.36 Subd. 4. [SUPPORT.] Staff and consultant support for board 13.1 activities shall be provided bythe office of strategic and13.2long-range planninga department designated by the governor. 13.3 This support shall be provided based upon an annual budget and 13.4 work program developed by the board and certified to the 13.5 commissioner by the chair of the board. The board shall have 13.6 the authority to request and require staff support from all 13.7 other agencies of state government as needed for the execution 13.8 of the responsibilities of the board. 13.9 Sec. 12. Minnesota Statutes 2002, section 116C.03, 13.10 subdivision 5, is amended to read: 13.11 Subd. 5. [ADMINISTRATION.] The board shall contract 13.12 withthe office of strategic and long-range planninga 13.13 department designated by the governor for administrative 13.14 services necessary to the board's activities. The services 13.15 shall include personnel, budget, payroll and contract 13.16 administration. 13.17 Sec. 13. Minnesota Statutes 2002, section 116C.712, 13.18 subdivision 3, is amended to read: 13.19 Subd. 3. [COUNCIL STAFF.] Staff support for council 13.20 activities must be provided by theoffice of strategic and13.21long-range planningpollution control agency. State departments 13.22 and agencies must cooperate with the council in the performance 13.23 of its duties. Upon the request of the chair of the council, 13.24 the governor may, by order, require a state department or agency 13.25 to furnish assistance necessary to carry out the council's 13.26 functions under this chapter. 13.27 Sec. 14. Minnesota Statutes 2002, section 116C.712, 13.28 subdivision 5, is amended to read: 13.29 Subd. 5. [ASSESSMENT.] (a) A person, firm, corporation, or 13.30 association in the business of owning or operating a nuclear 13.31 fission electrical generating plant in this state shall pay an 13.32 assessment to cover the cost of: 13.33 (1) monitoring the federal high-level radioactive waste 13.34 program under the Nuclear Waste Policy Act, United States Code, 13.35 title 42, sections 10101 to 10226; 13.36 (2) advising the governor and the legislature on policy 14.1 issues relating to the federal high-level radioactive waste 14.2 disposal program; 14.3 (3) surveying existing literature and activity relating to 14.4 radioactive waste management, including storage, transportation, 14.5 and disposal, in the state; 14.6 (4) an advisory task force on low-level radioactive waste 14.7 deregulation, created by a law enacted in 1990 until July 1, 14.8 1996; and 14.9 (5) other general studies necessary to carry out the 14.10 purposes of this subdivision. 14.11 The assessment must not be more than the appropriation to 14.12 theoffice of strategic and long-range planningpollution 14.13 control agency for these purposes. 14.14 (b) Theofficepollution control agency shall bill the 14.15 owner or operator of the plant for the assessment at least 30 14.16 days before the start of each quarter. The assessment for the 14.17 second quarter of each fiscal year must be adjusted to 14.18 compensate for the amount by which actual expenditures by 14.19 theofficeagency for the preceding year were more or less than 14.20 the estimated expenditures previously assessed. The billing may 14.21 be made as an addition to the assessments made under section 14.22 116C.69. The owner or operator of the plant must pay the 14.23 assessment within 30 days after receipt of the bill. The 14.24 assessment must be deposited in the state treasury and credited 14.25 to the special revenue fund. 14.26 (c) The authority for this assessment terminates when the 14.27 department of energy eliminates Minnesota from further siting 14.28 consideration for high-level radioactive waste by starting 14.29 construction of a high-level radioactive waste disposal site in 14.30 another state. The assessment required for any quarter must be 14.31 reduced by the amount of federal grant money received by the 14.32 office of strategic and long-range planning for the purposes 14.33 listed in this section. 14.34 (d) The director of theoffice of strategic and long-range14.35planningpollution control agency must report annually by July 1 14.36 to the environment and natural resources committees of the 15.1 senate and house of representatives, the finance division of the 15.2 senate committee on environment and natural resources, and the 15.3 house of representatives committee on environment and natural 15.4 resources finance on activities assessed under paragraph (a). 15.5 Sec. 15. Minnesota Statutes 2002, section 124D.23, 15.6 subdivision 9, is amended to read: 15.7 Subd. 9. [RECEIPT OF FUNDS.] Theoffice of strategic and15.8long-range planningcommissioner of children, families, and 15.9 learning may receive and administer public and private funds for 15.10 the purposes of Laws 1993, chapter 224. 15.11 Sec. 16. Minnesota Statutes 2002, section 145.9266, 15.12 subdivision 6, is amended to read: 15.13 Subd. 6. [FETAL ALCOHOL COORDINATING BOARD; DUTIES.] (a) 15.14 The fetal alcohol coordinating board consists of: 15.15 (1) the commissioners of health, human services, 15.16 corrections, public safety, economic security, and children, 15.17 families, and learning; 15.18 (2)the director of the office of strategic and long-range15.19planning;15.20(3)the chair of the maternal and child health advisory 15.21 task force established by section 145.881, or the chair's 15.22 designee; 15.23(4)(3) a representative of the University of Minnesota 15.24 academic health center, appointed by the provost; 15.25(5)(4) five members from the general public appointed by 15.26 the governor, one of whom must be a family member of an 15.27 individual with fetal alcohol syndrome or fetal alcohol effect; 15.28 and 15.29(6)(5) one member from the judiciary appointed by the 15.30 chief justice of the supreme court. 15.31 Terms, compensation, removal, and filling of vacancies of 15.32 appointed members are governed by section 15.0575. The board 15.33 shall elect a chair from its membership to serve a one-year 15.34 term. The commissioner of health shall provide staff and 15.35 consultant support for the board. Support must be provided 15.36 based on an annual budget and work plan developed by the board. 16.1 The board shall contract with the department of health for 16.2 necessary administrative services. Administrative services 16.3 include personnel, budget, payroll, and contract 16.4 administration. The board shall adopt an annual budget and work 16.5 program. 16.6 (b) Board duties include: 16.7 (1) reviewing programs of state agencies that involve fetal 16.8 alcohol syndrome and coordinating those that are 16.9 interdepartmental in nature; 16.10 (2) providing an integrated and comprehensive approach to 16.11 fetal alcohol syndrome prevention and intervention strategies 16.12 both at a local and statewide level; 16.13 (3) approving on an annual basis the statewide public 16.14 awareness campaign as designed and implemented by the 16.15 commissioner of health under subdivision 1; 16.16 (4) reviewing fetal alcohol syndrome community grants 16.17 administered by the commissioner of health under subdivision 4; 16.18 and 16.19 (5) submitting a report to the governor on January 15 of 16.20 each odd-numbered year summarizing board operations, activities, 16.21 findings, and recommendations, and fetal alcohol syndrome 16.22 activities throughout the state. 16.23 (c) The board expires on January 1, 2001. 16.24 Sec. 17. Minnesota Statutes 2002, section 394.232, 16.25 subdivision 1, is amended to read: 16.26 Subdivision 1. [GENERAL.] Each county is encouraged to 16.27 prepare and implement a community-based comprehensive plan. A 16.28 community-based comprehensive plan is a comprehensive plan that 16.29 is consistent with the goals of community-based planning in 16.30 Minnesota Statutes 1998, section 4A.08. 16.31 Sec. 18. Minnesota Statutes 2002, section 394.232, 16.32 subdivision 2, is amended to read: 16.33 Subd. 2. [NOTICE AND PARTICIPATION.] Notice must be given 16.34 at the beginning of the community-based comprehensive planning 16.35 process tothe office of strategic and long-range planning,the 16.36 department of natural resources, the department of agriculture, 17.1 the department of trade and economic development, the board of 17.2 water and soil resources, the pollution control agency, the 17.3 department of transportation, local government units, and local 17.4 citizens to actively participate in the development of the 17.5 plan. An agency that is invited to participate in the 17.6 development of a local plan but declines to do so and fails to 17.7 participate or to provide written comments during the plan 17.8 development process waives the right during the office's review 17.9 and comment period to submit comments, except for comments 17.10 concerning consistency of the plan with laws and rules 17.11 administered by the agency. In determining the merit of the 17.12 agency comment, the office shall consider the involvement of the 17.13 agency in the development of the plan. 17.14 Sec. 19. Minnesota Statutes 2002, section 394.232, 17.15 subdivision 6, is amended to read: 17.16 Subd. 6. [PLAN UPDATE.] The county board, or the board of 17.17 the joint planning district, shall review and update the 17.18 community-based comprehensive plan periodically, but at least 17.19 every ten years, and submit the updated plan to the office of17.20strategic and long-range planning for review and comment. 17.21 Sec. 20. Minnesota Statutes 2002, section 394.232, 17.22 subdivision 7, is amended to read: 17.23 Subd. 7. [NO MANDAMUS PROCEEDING.] A mandamus proceeding 17.24 may not be instituted against a county under this section to 17.25 require the county to conform its community-based comprehensive 17.26 plan to be consistent with the community-based planning goals in 17.27 Minnesota Statutes 1998, section 4A.08. 17.28 Sec. 21. Minnesota Statutes 2002, section 462.3535, 17.29 subdivision 1, is amended to read: 17.30 Subdivision 1. [GENERAL.] Each municipality is encouraged 17.31 to prepare and implement a community-based comprehensive 17.32 municipal plan. A community-based comprehensive municipal plan 17.33 is a comprehensive plan that is consistent with the goals of 17.34 community-based planning in Minnesota Statutes 1998, section 17.35 4A.08. 17.36 Sec. 22. Minnesota Statutes 2002, section 462.3535, 18.1 subdivision 5, is amended to read: 18.2 Subd. 5. [URBAN GROWTH AREA BOUNDARY ADJUSTMENT PROCESS.] 18.3 (a) After an urban growth area has been identified in a county 18.4 or city plan, a city shall negotiate, as part of the 18.5 comprehensive planning process and in coordination with the 18.6 county, an orderly annexation agreement with the townships 18.7 containing the affected unincorporated areas located within the 18.8 identified urban growth area. The agreement shall contain a 18.9 boundary adjustment staging plan that establishes a sequencing 18.10 plan over the subsequent 20-year period for the orderly growth 18.11 of the city based on its reasonably anticipated development 18.12 pattern and ability to extend municipal services into designated 18.13 unincorporated areas located within the identified urban growth 18.14 area. The city shall include the staging plan agreed upon in 18.15 the orderly annexation agreement in its comprehensive plan. 18.16 Upon agreement by the city and town, prior adopted orderly 18.17 annexation agreements may be included as part of the boundary 18.18 adjustment plan and comprehensive plan without regard to whether 18.19 the prior adopted agreement is consistent with this section. 18.20 When either the city or town requests that an existing orderly 18.21 annexation agreement affecting unincorporated areas located 18.22 within an identified or proposed urban growth area be 18.23 renegotiated, the renegotiated plan shall be consistent with 18.24 this section. 18.25 (b) After a city's community-based comprehensive plan is 18.26 approved under this section, the orderly annexation agreement 18.27 shall be filed with themunicipalcounty boardor its successor18.28agency. Thereafter, the city may orderly annex the part or 18.29 parts of the designated unincorporated area according to the 18.30 sequencing plan and conditions contained in the negotiated 18.31 orderly annexation agreement by submitting a resolution to the 18.32municipalcounty boardor its successor agency. The resolution 18.33 shall specify the legal description of the area designated 18.34 pursuant to the staging plan contained in the agreement, a map 18.35 showing the new boundary and its relation to the existing city 18.36 boundary, a description of and schedule for extending municipal 19.1 services to the area, and a determination that all applicable 19.2 conditions in the agreement have been satisfied. Within 30 days 19.3 of receipt of the resolution, themunicipalcounty boardor its19.4successorshall review the resolution and if it finds that the 19.5 terms and conditions of the orderly annexation agreement have 19.6 been met, shall order the annexation. The boundary adjustment 19.7 shall become effective upon issuance of an order by 19.8 themunicipalcounty boardor its successor. Themunicipal19.9 county boardor its successorshall cause copies of the boundary 19.10 adjustment order to be mailed to the secretary of state, 19.11 department of revenue, state demographer, and department of 19.12 transportation. No further proceedings under chapter 414 or 19.13 572A shall be required to accomplish the boundary adjustment. 19.14 This section provides the sole method for annexing 19.15 unincorporated land within an urban growth area, unless the 19.16 parties agree otherwise. 19.17 (c) If a community-based comprehensive plan is updated, the 19.18 parties shall renegotiate the orderly annexation agreement as 19.19 needed to incorporate the adjustments and shall refile the 19.20 agreement with themunicipalcounty boardor its successor. 19.21 Sec. 23. Minnesota Statutes 2002, section 462.3535, 19.22 subdivision 8, is amended to read: 19.23 Subd. 8. [COUNTY APPROVAL.] (a) If a city plans for growth 19.24 beyond its current boundaries, the city's proposed 19.25 community-based comprehensive municipal plan and proposed urban 19.26 growth area must be reviewed and approved by the county before 19.27 the plan is incorporated into the county's plan. The county may 19.28 review and provide comments on any orderly annexation agreement 19.29 during the same period of review of a comprehensive plan. 19.30 (b) Upon receipt by the county of a community-based 19.31 comprehensive plan submitted by a city for review and approval 19.32 under this subdivision, the county shall, within 60 days of 19.33 receipt of a city plan, review and approve the plan in 19.34 accordance with this subdivision. The county shall review and 19.35 approve the city plan if it is consistent with the goals stated 19.36 in Minnesota Statutes 1998, section 4A.08. 20.1 (c) In the event the county does not approve the plan, the 20.2 county shall submit its comments to the city within 60 days. 20.3 The city may, thereafter, amend the plan and resubmit the plan 20.4 to the county. The county shall have an additional 60 days to 20.5 review and approve a resubmitted plan. In the event the county 20.6 and city are unable to come to agreement, either party may 20.7 initiate the dispute resolution process contained in chapter 20.8 572A. Within 30 days of receiving notice that the other party 20.9 has initiated dispute resolution, the city or county shall send 20.10 notice of its intent to enter dispute resolution. If the city 20.11 refuses to enter the dispute resolution process, it must refund 20.12 any grant received from the county for community-based planning 20.13 activities. 20.14 Sec. 24. Minnesota Statutes 2002, section 462.3535, 20.15 subdivision 10, is amended to read: 20.16 Subd. 10. [NO MANDAMUS PROCEEDING.] A mandamus proceeding 20.17 may not be instituted against a municipality under this section 20.18 to require the municipality to conform its community-based 20.19 comprehensive plan to be consistent with the community-based 20.20 planning goals in Minnesota Statutes 1998, section 4A.08. 20.21 Sec. 25. Minnesota Statutes 2002, section 473.1455, is 20.22 amended to read: 20.23 473.1455 [METROPOLITAN DEVELOPMENT GUIDE GOALS.] 20.24 The metropolitan council shall amend the metropolitan 20.25 development guide, as necessary, to reflect and implement the 20.26 community-based planning goals in Minnesota Statutes 1998, 20.27 section 4A.08.The office of strategic and long-range planning20.28shall review and comment on the metropolitan development guide.20.29The council may not approve local comprehensive plans or plan20.30amendments after July 1, 1999, until the metropolitan council20.31has received and considered the comments of the office of20.32strategic and long-range planning.20.33 Sec. 26. Minnesota Statutes 2002, section 477A.014, 20.34 subdivision 4, is amended to read: 20.35 Subd. 4. [COSTS.] Thedirector of the office of strategic20.36and long-range planningcommissioner of administration shall 21.1 annually bill the commissioner of revenue for one-half of the 21.2 costs incurred by the state demographer in the preparation of 21.3 materials required by section 4A.02. The state auditor shall 21.4 bill the commissioner of revenue for the costs of the services 21.5 provided by the government information division and the parts of 21.6 the constitutional office that are related to the government 21.7 information function, not to exceed $217,000 in fiscal year 1992 21.8 and $217,000 in fiscal year 1993 and thereafter. The 21.9 commissioner of administration shall bill the commissioner of 21.10 revenue for the costs of the local government records program 21.11 and the intergovernmental information systems activity, not to 21.12 exceed $201,100 in fiscal year 1992 and $205,800 in fiscal year 21.13 1993 and thereafter. The commissioner of employee relations 21.14 shall bill the commissioner of revenue for the costs of 21.15 administering the local government pay equity function, not to 21.16 exceed $56,000 in fiscal year 1992 and $55,000 in fiscal year 21.17 1993 and thereafter. 21.18 Sec. 27. Minnesota Statutes 2002, section 572A.01, is 21.19 amended to read: 21.20 572A.01 [COMPREHENSIVE PLANNING DISPUTES; MEDIATION.] 21.21 Subdivision 1. [FILING.] In the event of a dispute between 21.22a county and the office of strategic and long-range planning21.23under section 394.232 ora county and a city under section 21.24 462.3535, regarding the development, content, or approval of a 21.25 community-based comprehensive land use plan, an aggrieved party 21.26 may file a written request for mediation, as provided in 21.27 subdivision 2, with the bureau of mediation services at any time 21.28 prior to a final action on a community-based comprehensive plan 21.29 or within 30 days of a final action on a community-based 21.30 comprehensive plan. 21.31 Subd. 2. [MEDIATION.] Within ten days of receiving a 21.32 request for mediation in subdivision 1, the bureau of mediation 21.33 services shall provide written notice of the request for 21.34 mediation to the parties and provide a list of neutrals 21.35 experienced in land use planning or local government issues 21.36 obtained from the supreme court,Minnesota municipal board,22.1 bureau of mediation services, Minnesota state bar association, 22.2 Hennepin county bar association, office of dispute resolution, 22.3 and others. Within 30 days thereafter, the affected parties 22.4 shall select a mediator from the list of neutrals or someone 22.5 else acceptable to the parties and submit to mediation for a 22.6 period of 30 days facilitated by the bureau. If the dispute 22.7 remains unresolved after the close of the 30-day mediation 22.8 period, the bureau shall prepare a report of its recommendations 22.9 and transmit the report within 30 days to the parties. Within 22.10 60 days after the date of issuance of the mediator's report, the 22.11 dispute shall be submitted to binding arbitration as provided in 22.12 this chapter. The mediator's report submitted to the parties is 22.13 informational only and is not admissible in arbitration. 22.14 Sec. 28. Minnesota Statutes 2002, section 572A.03, 22.15 subdivision 2, is amended to read: 22.16 Subd. 2. [COMPREHENSIVE LAND USE PLANNING.] For 22.17 comprehensive land use planning disputes under section 462.3535, 22.18 if a community-based comprehensive plan addresses the goals of 22.19 Minnesota Statutes 1998, section 4A.08 and the arbitrators find 22.20 that the city's projected estimates found in its comprehensive 22.21 plan are reasonable with respect to an identified urban growth 22.22 area, the arbitration panel may order approval of the city 22.23 plan. If the order is to approve the community-based 22.24 comprehensive plan, the order shall contain notice directing the 22.25 county to approve the city plan within ten days of receipt of 22.26 the arbitration order. The city shall, thereafter, adopt the 22.27 plan. If the order is to deny the plan, the arbitration order 22.28 shall state the reasons for the denial in the order and transmit 22.29 the order to the city, the county, and the office of strategic 22.30 and long-range planning. The city shall within 30 days of 22.31 receipt of the order amend its plan and resubmit the plan to the 22.32 county for review and approval under this subdivision. The 22.33 county shall not unreasonably withhold approval of the plan if 22.34 the resubmitted city plan is in keeping with the arbitration 22.35 panel's order. 22.36 Sec. 29. [REPEALER.] 23.1 Minnesota Statutes 2002, sections 4A.01; 4A.055; 4A.06; 23.2 4A.07; 394.232, subdivision 5; and 462.3535, subdivision 9, are 23.3 repealed. 23.4 Sec. 30. [EFFECTIVE DATE.] 23.5 This article is effective July 1, 2003. 23.6 ARTICLE 3 23.7 MUNICIPAL BOUNDARY ADJUSTMENTS; COUNTY REVIEW 23.8 Section 1. Minnesota Statutes 2002, section 14.03, 23.9 subdivision 2, is amended to read: 23.10 Subd. 2. [CONTESTED CASE PROCEDURES.] The contested case 23.11 procedures of the Administrative Procedure Act provided in 23.12 sections 14.57 to 14.69 do not apply to (a)the Minnesota23.13municipal boardproceedings under chapter 414, except as 23.14 specified in that chapter, (b) the commissioner of corrections, 23.15 (c) the unemployment insurance benefits program and the social 23.16 security disability determination program in the department of 23.17 economic security, (d) the commissioner of mediation services, 23.18 (e) the workers' compensation division in the department of 23.19 labor and industry, (f) the workers' compensation court of 23.20 appeals, or (g) the board of pardons. 23.21 Sec. 2. Minnesota Statutes 2002, section 40A.121, is 23.22 amended to read: 23.23 40A.121 [ANNEXATION PROCEEDINGS.] 23.24 Subdivision 1. [ANNEXATION PROHIBITED.] Land within an 23.25 agricultural preserve that is within a township may not be 23.26 annexed to a municipality under chapter 414, unlessthe23.27Minnesota municipal board finds thateither: 23.28 (1) the owner or the county has initiated termination of 23.29 the zone under section 40A.11; 23.30 (2) because of size, tax base, population or other relevant 23.31 factors, the township would not be able to provide normal 23.32 governmental functions and services; or 23.33 (3) the zone would be completely surrounded by lands within 23.34 a municipality. 23.35 Subd. 2. [EXCEPTION.] This section does not apply to 23.36 annexation agreements approvedby the Minnesota municipal board24.1 under chapter 414 prior to creation of the zone. 24.2 Sec. 3. Minnesota Statutes 2002, section 272.67, 24.3 subdivision 1, is amended to read: 24.4 Subdivision 1. Any city however organized, except in those 24.5 counties situated in a metropolitan area as defined in Minnesota 24.6 Statutes 1961, Section 473.02, Subdivision 5, which contain 24.7 cities of the first class, may by ordinance adopted in the 24.8 manner provided in this section divide its area into an urban 24.9 service district and a rural service district, constituting 24.10 separate taxing districts for the purpose of all municipal 24.11 property taxes except those levied for the payment of bonds and 24.12 judgments and interest thereon.In proceedings for annexation,24.13incorporation, or consolidation being conducted pursuant to24.14chapter 414, the Minnesota municipal board may by order24.15divideAn order resulting from a proceeding for annexation, 24.16 incorporation, or consolidation under chapter 414 may divide a 24.17 municipality into an urban service district and a rural service 24.18 district, such districts to be designatedby the boardin 24.19 accordance with the criteria set out in subdivision 2. 24.20 Thereafter, said urban service district and rural service 24.21 district may be changed in the same manner that an ordinance or 24.22 amendment is changed in accordance with this section. 24.23 Sec. 4. Minnesota Statutes 2002, section 276A.09, is 24.24 amended to read: 24.25 276A.09 [CHANGE IN STATUS OF MUNICIPALITY.] 24.26 If a municipality is dissolved, is consolidated with all or 24.27 part of another municipality, annexes territory, has a portion 24.28 of its territory detached from it, or is newly incorporated, the 24.29 secretary of state shall immediately certify that fact to the 24.30 commissioner of revenue. The secretary of state shall also 24.31 certify to the commissioner of revenue the current population of 24.32 the new, enlarged, or successor municipality, if determinedby24.33the Minnesota municipal boardincident to consolidation, 24.34 annexation, or incorporation proceedings. The population so 24.35 certified shall govern for purposes of sections 276A.01 to 24.36 276A.09 until the state demographer files the first population 25.1 estimate as of a later date with the commissioner of revenue. 25.2 If an annexation of unincorporated land occurs without 25.3 proceedings before theMinnesota municipalcounty board as 25.4 provided in chapter 414, the population of the annexing 25.5 municipality as previously determined shall continue to govern 25.6 for purposes of sections 276A.01 to 276A.09 until the state 25.7 demographer files the first population estimate as of a later 25.8 date with the commissioner of revenue. 25.9 Sec. 5. Minnesota Statutes 2002, section 365.46, 25.10 subdivision 2, is amended to read: 25.11 Subd. 2. [COPIES.] The county auditor shall also send a 25.12 copy of the notice of the dissolution to: (1) the state 25.13 demographer, (2) the land management information center, and (3) 25.14the Minnesota municipal board, and (4)the commissioner of 25.15 transportation. 25.16 Sec. 6. Minnesota Statutes 2002, section 379.05, is 25.17 amended to read: 25.18 379.05 [AUDITOR TO ABSTRACT REPORT FOR AGENCIES, ENTER TOWN 25.19 RECORD.] 25.20 Each county auditor shall within 30 days after any such 25.21 town is organized transmit by mail to the commissioner of 25.22 revenue, the secretary of state, the state demographer, the land 25.23 management information center,the Minnesota municipal board,25.24 and the commissioner of transportation an abstract of such 25.25 report, giving the name and boundaries of such town and record 25.26 in a book kept for that purpose a full description of each such 25.27 town. 25.28 Sec. 7. Minnesota Statutes 2002, section 412.021, 25.29 subdivision 1, is amended to read: 25.30 Subdivision 1. [ELECTION.] Upon the filing of the 25.31 certificate with the secretary of state, if the vote is in favor 25.32 of incorporation, the judges of election appointed bythe25.33Minnesota municipal board orthe county boardas the case may25.34be,shall fix a day at least 15 and not more than 30 days 25.35 thereafter and a place for the holding of an election for 25.36 officers. The judges shall also fix the time, not less than 26.1 three hours, during which the polls shall remain open at the 26.2 election and shall post a notice setting forth the time and 26.3 place of such election in three public places in the city for at 26.4 least ten days preceding the election. 26.5 Sec. 8. Minnesota Statutes 2002, section 412.091, is 26.6 amended to read: 26.7 412.091 [DISSOLUTION.] 26.8 Whenever a number of voters equal to one-third of those 26.9 voting at the last preceding city election petition the 26.10municipalcounty board of commissioners of the county in which a 26.11 majority of the city's population resides therefor, a special 26.12 election shall be called to vote upon the question of dissolving 26.13 the city. Before the election, theexecutive director of the26.14 county board shall designate a time and place for a hearing 26.15 before the board in accordance with section 414.09. After the 26.16 hearing the board shall issue its order which shall include a 26.17 date for the election, a determination of what town or towns the 26.18 territory of the city shall belong to if the voters favor 26.19 dissolution, and other necessary provisions. The ballots used 26.20 at such election shall bear the printed words, "For Dissolution" 26.21 and "Against Dissolution," with a square before each phrase in 26.22 which the voter may express a preference by a cross. If a 26.23 majority of those voting on the question favor dissolution, the 26.24 clerk shall file a certificate of the result withthe municipal26.25board,the secretary of state and the county auditor of the 26.26 county in which the city is situated. Six months after the date 26.27 of such election, the city shall cease to exist. Within such 26.28 six months, the council shall audit all claims against the city, 26.29 settle with the treasurer, and other city officers, and apply 26.30 the assets of the city to the payment of its debts. If any 26.31 debts remain unpaid, other than bonds, the city clerk shall file 26.32 a schedule of such debts with the county treasurer and the 26.33 council shall levy a tax sufficient for their payment, the 26.34 proceeds of which, when collected, shall be paid by the county 26.35 treasurer to the creditors in proportion to their several claims 26.36 until all are discharged. The principal and interest on 27.1 outstanding bonds shall be paid when due by the county treasurer 27.2 from a tax annually spread by the county auditor against 27.3 property formerly included within the city until the bonds are 27.4 fully paid. All city property and all rights of the city shall, 27.5 upon dissolution, inure in the town or towns designated by the 27.6 board as the legal successor to the city. If the city territory 27.7 goes to more than one town, surplus cash assets and unsold city 27.8 property shall be distributed as provided by the board order. 27.9 Sec. 9. Minnesota Statutes 2002, section 414.01, 27.10 subdivision 1b, is amended to read: 27.11 Subd. 1b. [GOALS IN PROMOTING, REGULATING MUNICIPAL 27.12 DEVELOPMENT.]The directorEach county may promote and regulate 27.13 development of municipalities: 27.14 (1) to provide for the extension of municipal government to 27.15 areas which are developed or are in the process of being 27.16 developed for intensive use for residential, commercial, 27.17 industrial, institutional, and governmental purposes or are 27.18 needed for such purposes; and 27.19 (2) to protect the stability of unincorporated areas which 27.20 are used or developed for agricultural, open space, and rural 27.21 residential purposes and are not presently needed for more 27.22 intensive uses; and 27.23 (3) to protect the integrity of land use planning in 27.24 municipalities and unincorporated areas so that the public 27.25 interest in efficient local government will be properly 27.26 recognized and served. 27.27 Sec. 10. Minnesota Statutes 2002, section 414.01, 27.28 subdivision 5, is amended to read: 27.29 Subd. 5. [CONSOLIDATION OF PROCEEDINGS.] Thedirector27.30 county board may order the consolidation of separate proceedings 27.31 in the interest of economy and expedience. 27.32 Sec. 11. Minnesota Statutes 2002, section 414.01, 27.33 subdivision 8, is amended to read: 27.34 Subd. 8. [PLANNING COMMISSION CONTRACTS, CONSULTANTS.]The27.35directorA county board may contract with regional, state, 27.36 county, or local planning commissions and hire expert 28.1 consultants to provide specialized information and assistance. 28.2 Sec. 12. Minnesota Statutes 2002, section 414.01, 28.3 subdivision 11, is amended to read: 28.4 Subd. 11. [SCHEDULE OF FILING FEES.] Thedirectorcounty 28.5 board by resolution may prescribe a schedule of filing fees for 28.6 any petitions, resolutions or ordinances filed pursuant to this 28.7 chapterby an appropriate rule promulgated in accordance with28.8the procedure prescribed in the general laws relating to28.9departments and agencies of the state for the issuance of28.10administrative rules. 28.11 Sec. 13. Minnesota Statutes 2002, section 414.01, 28.12 subdivision 12, is amended to read: 28.13 Subd. 12. [REQUEST FOR HEARING TRANSCRIPTS; COSTS.] Any 28.14 party may request thedirectorcounty board to cause a 28.15 transcript of the hearing to be made. Any party requesting a 28.16 copy of the transcript is responsible for its costs. 28.17 Sec. 14. Minnesota Statutes 2002, section 414.01, 28.18 subdivision 14, is amended to read: 28.19 Subd. 14. [POPULATION OF CHANGED TERRITORY, NEW 28.20 MUNICIPALITY.] (a) When an order or approval letter under this 28.21 chapter enlarges or diminishes the area of an existing 28.22 municipality or town, thedirectorcounty board shall 28.23 communicate the order or approval letter to the municipality and 28.24 the state demographer. The municipality shall prepare an 28.25 estimate of population and of the number of households for the 28.26 annexed or detached area of the municipality or town. The 28.27 estimate shall be certified by the state demographer. The 28.28 estimate must estimate the population as of the effective date 28.29 of the order or approval letter and must be so dated. 28.30 (b) When a new municipality is created by an order under 28.31 this chapter, the municipality shall request a separation census 28.32 from the United States Bureau of the Census and bear any costs 28.33 incurred. 28.34 Sec. 15. Minnesota Statutes 2002, section 414.01, 28.35 subdivision 16, is amended to read: 28.36 Subd. 16. [COMPELLED MEETINGS; REPORT.] In any proceeding 29.1 under this chapter, thedirector or conductor of the29.2proceedingcounty board may at any time in the process require 29.3 representatives from the involved city, town, county, political 29.4 subdivision, or other governmental entity to meet together to 29.5 discuss resolution of issues raised by the petition or order 29.6 that confers jurisdiction on thedirectorcounty board and other 29.7 issues of mutual concern. Thedirector or conductor of the29.8proceedingcounty board may require that the parties meet at 29.9 least three times during a 60-day period. The parties shall 29.10 designate a person to report to thedirector or conductor of the29.11proceedingcounty board on the results of the meetings 29.12 immediately after the last meeting. 29.13 Sec. 16. Minnesota Statutes 2002, section 414.01, 29.14 subdivision 17, is amended to read: 29.15 Subd. 17. [DATA FROM STATE AGENCIES.] Thedirectorcounty 29.16 board may request information from any state department or 29.17 agency in order to assist in carrying out thedirector'scounty 29.18 board's duties under this chapter. The department or agency 29.19 shall promptly furnish the requested information. 29.20 Sec. 17. Minnesota Statutes 2002, section 414.011, is 29.21 amended by adding a subdivision to read: 29.22 Subd. 12. [BOARD; COUNTY BOARD.] In incorporation or 29.23 annexation proceedings, "board" or "county board" means the 29.24 board of county commissioners for the county in which the 29.25 unincorporated land proposed to be incorporated or annexed is 29.26 located. In any other municipal boundary adjustment proceeding, 29.27 "board" or "county board" means the board of county 29.28 commissioners of the county in which the municipality is or 29.29 municipalities are located, or, if in more than one county, a 29.30 joint board of county commissioners consisting of three board 29.31 members appointed from each affected county. A chair for the 29.32 joint board shall be elected by the members of the joint board. 29.33 The joint board is dissolved upon completion of the matter. 29.34 Sec. 18. Minnesota Statutes 2002, section 414.012, is 29.35 amended to read: 29.36 414.012 [FILING OF MAPS IN BOUNDARY ADJUSTMENT 30.1 PROCEEDINGS.] 30.2 Subdivision 1. [CORPORATE BOUNDARY MAP.] A municipality 30.3 initiating any boundary adjustment authorized by this chapter 30.4 shall file with thedirectorcounty board a corporate boundary 30.5 map. Any proposed boundary adjustment shall be delineated on a 30.6 copy of the corporate boundary map. 30.7 Subd. 2. [PLAT MAPS.] Any party initiating a boundary 30.8 adjustment, which includes platted land, shall file with the 30.9directorcounty board maps which are necessary to support and 30.10 identify the land description. The maps shall include copies of 30.11 plats. 30.12 Sec. 19. Minnesota Statutes 2002, section 414.02, is 30.13 amended to read: 30.14 414.02 [EXCLUSIVE METHOD OF MUNICIPAL INCORPORATION.] 30.15 Subdivision 1. [INITIATING THE PROCEEDINGS.] This section 30.16 provides the exclusive method of incorporating a municipality in 30.17 Minnesota. Proceedings for incorporation of a municipality may 30.18 be initiated by petition of 100 or more property owners or by 30.19 resolution of the town board within an area which is not 30.20 included within the limits of any incorporated municipality and 30.21 which area includes land that has been platted into lots and 30.22 blocks in the manner provided by law. The petition or 30.23 resolution shall be submitted to thedirectorcounty board and 30.24 shall state the proposed name of the municipality, the names of 30.25 all parties entitled to mailed notice under section 414.09, the 30.26 reason for requesting incorporation, and shall include a 30.27 proposed corporate boundary map. 30.28 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a petition 30.29 or resolution made pursuant to subdivision 1, the 30.30directorcounty board shall designate a time and place for a 30.31 hearing in accordance with section 414.09. 30.32 Subd. 3. [RELEVANT FACTORS, ORDER.] (a) In arriving at a 30.33 decision, thedirectorcounty board shall consider the following 30.34 factors: 30.35 (1) present population and number of households, past 30.36 population and projected population growth for the subject area; 31.1 (2) quantity of land within the subject area; the natural 31.2 terrain including recognizable physical features, general 31.3 topography, major watersheds, soil conditions and such natural 31.4 features as rivers, lakes and major bluffs; 31.5 (3) present pattern of physical development, planning, and 31.6 intended land uses in the subject area including residential, 31.7 industrial, commercial, agricultural, and institutional land 31.8 uses and the impact of the proposed action on those uses; 31.9 (4) the present transportation network and potential 31.10 transportation issues, including proposed highway development; 31.11 (5) land use controls and planning presently being utilized 31.12 in the subject area, including comprehensive plans, policies of 31.13 the metropolitan council; and whether there are inconsistencies 31.14 between proposed development and existing land use controls; 31.15 (6) existing levels of governmental services being provided 31.16 to the subject area, including water and sewer service, fire 31.17 rating and protection, law enforcement, street improvements and 31.18 maintenance, administrative services, and recreational 31.19 facilities and the impact of the proposed action on the delivery 31.20 of the services; 31.21 (7) existing or potential environmental problems and 31.22 whether the proposed action is likely to improve or resolve 31.23 these problems; 31.24 (8) fiscal impact on the subject area and adjacent units of 31.25 local government, including present bonded indebtedness; local 31.26 tax rates of the county, school district, and other governmental 31.27 units, including, where applicable, the net tax capacity of 31.28 platted and unplatted lands and the division of homestead and 31.29 nonhomestead property; and other tax and governmental aid 31.30 issues; 31.31 (9) relationship and effect of the proposed action on 31.32 affected and adjacent school districts and communities; 31.33 (10) whether delivery of services to the subject area can 31.34 be adequately and economically delivered by the existing 31.35 government; 31.36 (11) analysis of whether necessary governmental services 32.1 can best be provided through the proposed action or another type 32.2 of boundary adjustment; 32.3 (12) degree of contiguity of the boundaries of the subject 32.4 area and adjacent units of local government; and 32.5 (13) analysis of the applicability of the State Building 32.6 Code. 32.7 (b) Based upon these factors, thedirectorcounty board may 32.8 order the incorporation on finding that: 32.9 (1) the property to be incorporated is now, or is about to 32.10 become, urban or suburban in character; or 32.11 (2) that the existing township form of government is not 32.12 adequate to protect the public health, safety, and welfare; or 32.13 (3) the proposed incorporation would be in the best 32.14 interests of the area under consideration. 32.15 (c) Thedirectorcounty board may deny the incorporation if 32.16 the area, or a part thereof, would be better served by 32.17 annexation to an adjacent municipality. 32.18 (d) Thedirectorcounty board may alter the boundaries of 32.19 the proposed incorporation by increasing or decreasing the area 32.20 to be incorporated so as to include only that property which is 32.21 now, or is about to become, urban or suburban in character, or 32.22 may exclude property that may be better served by another unit 32.23 of government. Thedirectorcounty board may also alter the 32.24 boundaries of the proposed incorporation so as to follow 32.25 visible, clearly recognizable physical features for municipal 32.26 boundaries. 32.27 (e) In all cases, thedirectorcounty board shall set forth 32.28 the factors which are the basis for the decision. 32.29 (f) Notwithstanding any other provision of law to the 32.30 contrary relating to the number of wards which may be 32.31 established, thedirectorcounty board may provide for election 32.32 of council members by wards, not less than three nor more than 32.33 seven in number, whose limits are prescribed in thedirector's32.34 county board's order upon a finding that area representation is 32.35 required to accord proper representation in the proposed 32.36 incorporated area because of uneven population density in 33.1 different parts thereof or the existence of agricultural lands 33.2 therein which are in the path of suburban development, but after 33.3 four years from the effective date of an incorporation the 33.4 council of the municipality may by resolution adopted by a 33.5 four-fifths vote abolish the ward system and provide for the 33.6 election of all council members at large as in other 33.7 municipalities. 33.8 (g) Thedirector'scounty board's order for incorporation 33.9 shall provide for the election of municipal officers in 33.10 accordance with section 414.09. The plan of government shall be 33.11 "Optional Plan A", provided that an alternate plan may be 33.12 adopted pursuant to section 412.551, at any time. 33.13 (h) The ordinances of the township in which the new 33.14 municipality is located shall continue in effect until repealed 33.15 by the governing body of the new municipality. 33.16 Subd. 4. [EFFECTIVE DATE OF INCORPORATION.] The 33.17 incorporation shall be effective upon the election and 33.18 qualification of new municipal officers or on such later date as 33.19 is fixed by thedirector'scounty board's order. 33.20 Sec. 20. Minnesota Statutes 2002, section 414.031, is 33.21 amended to read: 33.22 414.031 [ANNEXING UNINCORPORATED PROPERTY BYDIRECTOR'S33.23 COUNTY BOARD'S ORDER.] 33.24 Subdivision 1. [INITIATING THE PROCEEDING.] (a) A 33.25 proceeding for the annexation of unincorporated property 33.26 abutting a municipality may be initiated by submitting to the 33.27directorcounty board and the affected township one of the 33.28 following: 33.29 (1) a resolution of the annexing municipality; 33.30 (2) a resolution of the township containing the area 33.31 proposed for annexation; 33.32 (3) a petition of 20 percent of the property owners or 100 33.33 property owners, whichever is less, in the area to be annexed; 33.34 (4) a resolution of the municipal council together with a 33.35 resolution of the township board stating their desire to have 33.36 the entire township annexed to the municipality. 34.1 (b) The petition, or resolution shall set forth the 34.2 boundaries of the territory proposed for annexation, the names 34.3 of all parties entitled to notice under section 414.09, and the 34.4 reasons for requesting annexation. 34.5 (c) If the proceeding is initiated by a petition of 34.6 property owners, the petition shall be accompanied by a 34.7 resolution of the annexing municipality supporting the petition. 34.8 Subd. 3. [HEARING TIME, PLACE.] Upon receipt of a petition 34.9 or resolution initiating an annexation, thedirectorcounty 34.10 board shall designate a time and a place for a hearing in 34.11 accordance with section 414.09. 34.12 Subd. 4. [RELEVANT FACTORS, ORDER.] (a) In arriving at a 34.13 decision, thedirectorcounty board shall consider the following 34.14 factors: 34.15 (1) present population and number of households, past 34.16 population and projected population growth of the subject area 34.17 and adjacent units of local government; 34.18 (2) quantity of land within the subject area and adjacent 34.19 units of local government; and natural terrain including 34.20 recognizable physical features, general topography, major 34.21 watersheds, soil conditions and such natural features as rivers, 34.22 lakes and major bluffs; 34.23 (3) degree of contiguity of the boundaries between the 34.24 annexing municipality and the subject area; 34.25 (4) present pattern of physical development, planning, and 34.26 intended land uses in the subject area and the annexing 34.27 municipality including residential, industrial, commercial, 34.28 agricultural and institutional land uses and the impact of the 34.29 proposed action on those land uses; 34.30 (5) the present transportation network and potential 34.31 transportation issues, including proposed highway development; 34.32 (6) land use controls and planning presently being utilized 34.33 in the annexing municipality and the subject area, including 34.34 comprehensive plans for development in the area and plans and 34.35 policies of the metropolitan council, and whether there are 34.36 inconsistencies between proposed development and existing land 35.1 use controls and the reasons therefore; 35.2 (7) existing levels of governmental services being provided 35.3 in the annexing municipality and the subject area, including 35.4 water and sewer service, fire rating and protection, law 35.5 enforcement, street improvements and maintenance, administrative 35.6 services, and recreational facilities and the impact of the 35.7 proposed action on the delivery of said services; 35.8 (8) existing or potential environmental problems and 35.9 whether the proposed action is likely to improve or resolve 35.10 these problems; 35.11 (9) plans and programs by the annexing municipality for 35.12 providing needed governmental services to the subject area; 35.13 (10) an analysis of the fiscal impact on the annexing 35.14 municipality, the subject area, and adjacent units of local 35.15 government, including net tax capacity and the present bonded 35.16 indebtedness, and the local tax rates of the county, school 35.17 district, and township; 35.18 (11) relationship and effect of the proposed action on 35.19 affected and adjacent school districts and communities; 35.20 (12) adequacy of town government to deliver services to the 35.21 subject area; 35.22 (13) analysis of whether necessary governmental services 35.23 can best be provided through the proposed action or another type 35.24 of boundary adjustment;and35.25 (14) if only a part of a township is annexed, the ability 35.26 of the remainder of the township to continue or the feasibility 35.27 of it being incorporated separately or being annexed to another 35.28 municipality; and 35.29 (15) the results of any advisory referendum held as 35.30 authorized in subdivision 9. 35.31 (b) Based upon the factors, thedirectorcounty board may 35.32 order the annexation on finding: 35.33 (1) that the subject area is now, or is about to become, 35.34 urban or suburban in character; 35.35 (2) that municipal government in the area proposed for 35.36 annexation is required to protect the public health, safety, and 36.1 welfare; or 36.2 (3) that the annexation would be in the best interest of 36.3 the subject area. 36.4 (c) If only a part of a township is to be annexed, the 36.5directorcounty board shall consider whether the remainder of 36.6 the township can continue to carry on the functions of 36.7 government without undue hardship. 36.8 (d) Thedirectorcounty board shall deny the annexation on 36.9 finding that the increase in revenues for the annexing 36.10 municipality bears no reasonable relation to the monetary value 36.11 of benefits conferred upon the annexed area. 36.12 (e) Thedirectorcounty board may deny the annexation on 36.13 finding: 36.14 (1) that annexation of all or a part of the property to an 36.15 adjacent municipality would better serve the interests of the 36.16 residents of the property; or 36.17 (2) that the remainder of the township would suffer undue 36.18 hardship. 36.19 (f) Thedirectorcounty board may alter the boundaries of 36.20 the area to be annexed by increasing or decreasing the area so 36.21 as to include only that property which is now or is about to 36.22 become urban or suburban in character or to add property of such 36.23 character abutting the area proposed for annexation in order to 36.24 preserve or improve the symmetry of the area, or to exclude 36.25 property that may better be served by another unit of government. 36.26 (g) Thedirectorcounty board may also alter the boundaries 36.27 of the proposed annexation so as to follow visible, clearly 36.28 recognizable physical features. 36.29 (h) If thedirectorcounty board determines that part of 36.30 the area would be better served by another municipality or 36.31 township, thedirectorcounty board may initiate and approve 36.32 annexation by conducting further hearings and issuing orders 36.33 pursuant to subdivisions 3 and 4. 36.34 (i) In all cases, thedirectorcounty board shall set forth 36.35 the factors which are the basis for the decision. 36.36 Subd. 4a. [PROVIDING FOR ELECTION OF NEW MUNICIPAL 37.1 OFFICERS.] (a) Any annexation order under this section for 37.2 annexation by a single municipality of an entire township shall 37.3 include a provision for the election of new municipal officers 37.4 in accordance with section 414.09. Thedirector of the office37.5of strategic and long-range planning, or the director's37.6designee,county board may also order an election of new 37.7 municipal officers in accordance with section 414.09 as part of 37.8 any other annexation order under this section if thedirector or37.9the director's designeeboard determines that such an election 37.10 would be equitable. 37.11 (b) The expanded municipality shall be governed by the home 37.12 rule charter or statutory form which governs the annexing 37.13 municipality, except that any ward system for the election of 37.14 council members shall be inoperable. 37.15 (c) The ordinances of both the annexing municipality and 37.16 the township shall continue in effect within the former 37.17 boundaries until repealed by the governing body of the new 37.18 municipality. 37.19 (d) Notwithstanding any other provision of law to the 37.20 contrary, thedirector of the office of strategic and long-range37.21planning, or the director's designee,county board may provide 37.22 for election of council members by wards, not less than three 37.23 nor more than seven in number, whose limits are prescribed in 37.24 thedirector'sboard's order, upon a finding that area 37.25 representation is required to accord proper representation in 37.26 the municipality because of uneven population density in 37.27 different parts thereof or the existence of agricultural lands 37.28 therein which are in the path of suburban development; but after 37.29 four years from the effective date of an annexation the council 37.30 of the municipality may by resolution adopted by a four-fifths 37.31 vote abolish the ward system and provide for the election of all 37.32 council members at large. 37.33 (e) Until the effective date of the annexation order, the 37.34 town board and other officers of the town shall continue to 37.35 exercise their powers and duties under the town laws in that 37.36 portion of the municipality that was formerly the town, and the 38.1 council and other officers of the annexing municipality shall 38.2 continue to exercise their powers and duties in that portion of 38.3 the expanded municipality that was formerly the municipality. 38.4 Thereafter the town board and the council of the annexing 38.5 municipality shall have no jurisdiction within the municipality, 38.6 and the new municipal council and other new officers shall act 38.7 in respect to any matters previously undertaken by the town 38.8 board of supervisors or municipal council within the limits of 38.9 the expanded municipality, including the making of any 38.10 improvement and the levying of any special assessments therefor 38.11 in the same manner and to the same effect as if such improvement 38.12 had been undertaken by the municipality. 38.13 (f) The new municipal council may continue or discontinue 38.14 any board that may have previously existed in the town or former 38.15 municipality. 38.16 Subd. 6. [EFFECTIVE DATE OF ANNEXATION.] The annexation 38.17 shall be effective as of the date fixed in the annexation order 38.18 or on a later date fixed in the annexation order. 38.19 Subd. 7. [COPY TO COUNTY AUDITORS.] A copy of the 38.20 annexation order must be delivered immediately by thedirector38.21 county board to the appropriate county auditors. 38.22 Subd. 8. [TIMING FOR TAX LEVY.] For the purposes of 38.23 taxation, if the annexation becomes effective on or before 38.24 August 1 of a levy year, the municipality may levy on the 38.25 annexed area beginning with that same levy year. If the 38.26 annexation becomes effective after August 1 of a levy year, the 38.27 town may continue to levy on the annexed area for that levy 38.28 year, and the municipality may not levy on the annexed area 38.29 until the following levy year. 38.30 Subd. 9. [ADVISORY REFERENDUM.] The county board may hold 38.31 an advisory referendum on the proposed annexation, or any action 38.32 that the county board may take in relation to the proposed 38.33 annexation, prior to issuing its order. 38.34 Sec. 21. Minnesota Statutes 2002, section 414.0325, 38.35 subdivision 1, is amended to read: 38.36 Subdivision 1. [INITIATING THE PROCEEDING.] (a) One or 39.1 more townships and one or more municipalities, by joint 39.2 resolution, may designate an unincorporated area as in need of 39.3 orderly annexation. 39.4 (b) The joint resolution will confer jurisdiction on the 39.5directorcounty board over annexations in the designated area 39.6 and over the various provisions in said agreement by submission 39.7 of said joint resolution to thedirectorcounty board. 39.8 (c) The resolution shall include a description of the 39.9 designated area and the reasons for designation. 39.10 (d) Thereafter, an annexation of any part of the designated 39.11 area may be initiated by: 39.12 (1) submitting to thedirectorcounty board a resolution of 39.13 any signatory to the joint resolution; or 39.14 (2) thedirectorcounty board. 39.15 (e) Whenever a state agency, other than the pollution 39.16 control agency, orders a municipality to extend a municipal 39.17 service to an area, the order confers jurisdiction on the 39.18directorcounty board to consider designation of the area for 39.19 orderly annexation. 39.20 (f) If a joint resolution designates an area as in need of 39.21 orderly annexation and states that no alteration of its stated 39.22 boundaries is appropriate, thedirectorcounty board may review 39.23 and comment, but may not alter the boundaries. 39.24 (g) If a joint resolution designates an area as in need of 39.25 orderly annexation, provides for the conditions for its 39.26 annexation, and states that no consideration by thedirector39.27 county board is necessary, thedirectorcounty board may review 39.28 and comment, but shall, within 30 days, order the annexation in 39.29 accordance with the terms of the resolution. 39.30 Sec. 22. Minnesota Statutes 2002, section 414.0325, 39.31 subdivision 2, is amended to read: 39.32 Subd. 2. [HEARING TIME, PLACE.] Upon receipt of a 39.33 resolution for annexation of a part of the designated area, the 39.34directorcounty board shall set a time and place for a hearing 39.35 in accordance with section 414.09. 39.36 Sec. 23. Minnesota Statutes 2002, section 414.0325, 40.1 subdivision 3, is amended to read: 40.2 Subd. 3. [RELEVANT FACTORS, ORDER.] (a) In arriving at a 40.3 decision, thedirectorcounty board shall consider the factors 40.4 in section 414.031, subdivision 4. 40.5 (b) Based upon factors in section 414.031, subdivision 4, 40.6 thedirectorcounty board may order the annexation: 40.7 (1) on finding that the subject area is now or is about to 40.8 become urban or suburban in character and that the annexing 40.9 municipality is capable of providing the services required by 40.10 the area within a reasonable time; or 40.11 (2) on finding that the existing township form of 40.12 government is not adequate to protect the public health, safety, 40.13 and welfare; or 40.14 (3) on finding that annexation would be in the best 40.15 interests of the subject area. 40.16 (c) Thedirectorcounty board may deny the annexation if it 40.17 conflicts with any provision of the joint agreement. 40.18 (d) Thedirectorcounty board may alter the boundaries of 40.19 the proposed annexation by increasing or decreasing the area so 40.20 as to include that property within the designated area which is 40.21 in need of municipal services or will be in need of municipal 40.22 services. 40.23 (e) If the annexation is denied, no proceeding for the 40.24 annexation of substantially the same area may be initiated 40.25 within two years from the date of the denial order unless the 40.26 new proceeding is initiated by a majority of the area's property 40.27 owners and the petition is supported by affected parties to the 40.28 resolution. 40.29 (f) In all cases, thedirectorcounty board shall set forth 40.30 the factors which are the basis for the decision. 40.31 Sec. 24. Minnesota Statutes 2002, section 414.0325, 40.32 subdivision 4, is amended to read: 40.33 Subd. 4. [EFFECTIVE DATE OF ANNEXATION.] The 40.34director'scounty board's order shall be effective upon the 40.35 issuance of the order or at such later time as is provided in 40.36 the order. 41.1 Sec. 25. Minnesota Statutes 2002, section 414.0325, 41.2 subdivision 4a, is amended to read: 41.3 Subd. 4a. [COPY TO COUNTY AUDITORS.] A copy of the 41.4 annexation order must be delivered immediately by thedirector41.5 county board to the appropriate county auditors. 41.6 Sec. 26. Minnesota Statutes 2002, section 414.033, 41.7 subdivision 3, is amended to read: 41.8 Subd. 3. [60 PERCENT BORDERED AND 40 ACRES OR LESS.] If 41.9 the perimeter of the area to be annexed by a municipality is 60 41.10 percent or more bordered by the municipality and if the area to 41.11 be annexed is 40 acres or less, the municipality shall serve 41.12 notice of intent to annex upon the town board and the 41.13directorcounty board, unless the area is appropriate for 41.14 annexation by ordinance under subdivision 2, clause (3). The 41.15 town board shall have 90 days from the date of service to serve 41.16 objections with thedirectorcounty board. If no objections are 41.17 forthcoming within the said 90-day period, such land may be 41.18 annexed by ordinance. If objections are filed with thedirector41.19 county board, thedirectorcounty board shall conduct hearings 41.20 and issue an order as in the case of annexations under section 41.21 414.031, subdivisions 3 and 4. 41.22 Sec. 27. Minnesota Statutes 2002, section 414.033, 41.23 subdivision 5, is amended to read: 41.24 Subd. 5. [PETITION BY PROPERTY OWNERS; OBJECTIONS; 41.25 PROCEDURE.] If the land is platted, or, if unplatted, does not 41.26 exceed 200 acres, a majority of the property owners in number 41.27 may petition the municipal council to have such land included 41.28 within the abutting municipality and, within ten days 41.29 thereafter, shall file copies of the petition withthe director,41.30 the town board, the county board and the municipal council of 41.31 any other municipality which borders the land to be annexed. 41.32 Within 90 days from the date of service, the town board or the 41.33 municipal council of such abutting municipality may submit 41.34 written objections to the annexation to thedirectorcounty 41.35 board and the annexing municipality. Upon receipt of such 41.36 objections, thedirectorcounty board shall proceed to hold a 42.1 hearing and issue an order in accordance with section 414.031, 42.2 subdivisions 3 and 4. If written objections are not submitted 42.3 within the time specified in this section and if the municipal 42.4 council determines that property proposed for the annexation is 42.5 now or is about to become urban or suburban in character, it may 42.6 by ordinance declare such land annexed to the municipality. If 42.7 the petition is not signed by all the property owners of the 42.8 land proposed to be annexed, the ordinance shall not be enacted 42.9 until the municipal council has held a hearing on the proposed 42.10 annexation after at least 30 days' mailed notice to all property 42.11 owners within the area to be annexed. 42.12 Sec. 28. Minnesota Statutes 2002, section 414.033, 42.13 subdivision 6, is amended to read: 42.14 Subd. 6. [IF PENDING PROCEEDING; WAIVERS FROM PARTIES.] 42.15 Whenever a proceeding for annexation is initiated under this 42.16 section and all or any part of the land is included in another 42.17 boundary adjustment proceeding pending before thedirector42.18 county board, no action thereon shall be taken by the 42.19 municipality, unless otherwise provided by an order of 42.20 thedirectorcounty board, until final disposition has been made 42.21 of the pending petition. Under this section, thedirectorboard 42.22 will accept a waiver from all parties having a right to object, 42.23 stating they have no objections to the proposed annexation and 42.24 waiving the 90 day period before an annexation ordinance may be 42.25 adopted. 42.26 Sec. 29. Minnesota Statutes 2002, section 414.033, 42.27 subdivision 7, is amended to read: 42.28 Subd. 7. [FILING; EFFECTIVE DATE; COPY TO AUDITORS.] Any 42.29 annexation ordinance provided for in this section must be filed 42.30 withthe director,the township, the county auditor and the 42.31 secretary of state and is final on the date the ordinance is 42.32 approved by thedirectorcounty board. A copy of the annexation 42.33 ordinance must be delivered immediately by the governing body of 42.34 the municipality to the appropriate county auditors. 42.35 Sec. 30. Minnesota Statutes 2002, section 414.033, 42.36 subdivision 10, is amended to read: 43.1 Subd. 10. [DIRECTORCOUNTY BOARD MAY REQUIRE ADDITIONAL 43.2 INFORMATION.] Thedirectorcounty board may require the city or 43.3 property owners to furnish additional information concerning an 43.4 annexation by ordinance to inform thedirectorboard about the 43.5 extent to which the proposed annexation conforms to the 43.6 statutory criteria set forth in sections 414.01, subdivision 1, 43.7 and 414.031, subdivision 4. 43.8 Sec. 31. Minnesota Statutes 2002, section 414.0335, is 43.9 amended to read: 43.10 414.0335 [IF PCA-ORDERED GOVERNMENTAL SERVICE EXTENSION.] 43.11 Subdivision 1. [ANNEXATION-BY-ORDINANCE ALTERNATIVE.] If a 43.12 determination or order by the pollution control agency, under 43.13 section 115.49 or other similar statute is made, that 43.14 cooperation by contract is necessary and feasible between a 43.15 municipality and an unincorporated area located outside the 43.16 existing corporate limits of a municipality, the municipality 43.17 required to provide or extend through a contract a governmental 43.18 service to an unincorporated area, during the statutory 90-day 43.19 period provided in section 115.49 to formulate a contract, may 43.20 in the alternative to formulating a service contract to provide 43.21 or extend the service, declare the unincorporated area described 43.22 in the pollution control agency's determination letter or order 43.23 annexed to the municipality by adopting an ordinance and 43.24 submitting it to thedirectorcounty board. 43.25 Subd. 2. [DIRECTOR'SCOUNTY BOARD'S ROLE.] Thedirector43.26 county board may review and comment on the ordinance but shall 43.27 approve the ordinance within 30 days of receipt. The ordinance 43.28 is final and the annexation is effective on the date 43.29 thedirectorcounty board approves the ordinance. 43.30 Subd. 3. [CITY TO AMEND PLAN AND CONTROLS.] Thereafter, 43.31 the city shall amend its comprehensive plan and official 43.32 controls in accordance with chapter 462. 43.33 Sec. 32. Minnesota Statutes 2002, section 414.041, is 43.34 amended to read: 43.35 414.041 [CONSOLIDATION OF MUNICIPALITIES.] 43.36 Subdivision 1. [INITIATING THE PROCEEDING.] (a) Two or 44.1 more municipalities may be the subject of a single proceeding 44.2 provided that each municipality abuts at least one of the 44.3 included municipalities. 44.4 (b) The proceeding shall be initiated in one of the 44.5 following ways: 44.6 (1) submitting to thedirectorcounty board a resolution of 44.7 the city council of each affected municipality; 44.8 (2) submitting to thedirectorcounty board a petition 44.9 signed by five percent or more of the resident voters of a 44.10 municipality who voted for governor at the last general 44.11 election; or 44.12 (3) by thedirectorcounty board. 44.13 (c) The petition or resolution shall set forth the 44.14 following information about each included municipality: name, 44.15 description of boundaries, the reasons for requesting the 44.16 consolidation and the names of all parties entitled to mailed 44.17 notice under section 414.09. 44.18 (d) The party initiating the proceeding shall serve copies 44.19 of the petition or resolution on all of the included 44.20 municipalities. 44.21 Subd. 2. [CONSOLIDATION COMMISSION.] Upon receipt of a 44.22 petition or a resolution requesting consolidation or upon the 44.23director'scounty board's own motion, thedirectorcounty board 44.24 shall appoint a consolidation commission from a list of ten 44.25 candidates submitted by each affected city council. The 44.26 commission shall be composed of not fewer than five members from 44.27 each affected municipality. From a separate list of three 44.28 persons submitted by each affected city council, thedirector44.29 county board shall appoint a commission chair who is not a 44.30 resident of an affected municipality but who resides in an 44.31 affected county. 44.32 No person is disqualified from serving on a consolidation 44.33 commission by reason of holding other elected or appointed 44.34 office. Consolidation commission members shall hold office 44.35 until a consolidation report has been issued by the commission. 44.36 Thedirectorcounty board shall fill vacancies in the commission 45.1 by appointment. The consolidation commission shall make rules 45.2 with reference to its operation and procedures including quorum 45.3 requirements with reference to its operations and procedures. 45.4 Subd. 3. [COMMISSION'S HEARING AND REPORT.] (a) The 45.5 consolidation commission shall conduct hearings regarding the 45.6 proposed consolidation. 45.7 (b) The hearings shall include, but are not limited to, the 45.8 following subjects: 45.9 (1) the contents of any city charter for the proposed 45.10 consolidated city or the form of government of the proposed 45.11 consolidated city; 45.12 (2) analysis of whether a ward system shall be included in 45.13 the form of government of the proposed consolidated city; and 45.14 (3) each factor considered by thedirectorcounty board 45.15 under section 414.02, subdivision 3. 45.16 (c) Based on these factors and upon other matters which 45.17 come before the consolidation commission, the commission shall 45.18 issue a report to thedirectorcounty board with findings and 45.19 recommendations within two years from the date of thedirector's45.20 county board's initial appointment of the commission. 45.21 Subd. 4. [DIRECTOR'SCOUNTY BOARD'S HEARING AND NOTICE.] 45.22 Upon receipt of the commission's report, thedirectorcounty 45.23 board shall designate a time and a place for a hearing in 45.24 accordance with section 414.09. 45.25 Subd. 5. [RELEVANT FACTORS, ORDER.] (a) In arriving at a 45.26 decision, thedirectorcounty board shall consider the factors 45.27 in section 414.02, subdivision 3. 45.28 (b) Thedirectorcounty board shall consider and may 45.29 accept, amend, return to the commission for amendment or further 45.30 study, or reject the commission's findings and recommendations 45.31 based upon thedirector'scounty board's written determination 45.32 of what is in the best interests of the affected municipalities. 45.33 (c) Thedirectorcounty board shall order the consolidation 45.34 on finding that consolidation will be for the best interests of 45.35 the municipalities. In all cases, thedirectorcounty board 45.36 shall set forth the factors which are the basis for the decision. 46.1 (d) If thedirectorcounty board orders consolidation, the 46.2 order shall provide for election of new municipal officers in 46.3 accordance with section 414.09. 46.4 (e) If the most populous of the included municipalities is 46.5 a statutory city, the new municipality shall be a statutory city 46.6 and the plan of government shall be Optional Plan A, provided 46.7 that an alternate plan may be adopted pursuant to section 46.8 412.551, at any time. If the most populous of the included 46.9 municipalities is a home rule charter city or organized under a 46.10 statute other than chapter 412, the new municipality shall be 46.11 governed by its home rule charter or the statutory form under 46.12 which it is governed except that any ward system for the 46.13 election of council members shall be inoperable. 46.14 (f) If the commission's findings and recommendations 46.15 include a proposed home rule charter for the new municipality, 46.16 the order may combine the issue of the adoption of the charter 46.17 and the vote on approval of the order for consolidation into one 46.18 question on the ballot, and shall submit it in a special or 46.19 general election as provided in section 410.10. 46.20 (g) The ordinances of all of the included municipalities 46.21 shall continue in effect within their former boundaries until 46.22 repealed by the governing body of the new municipality. 46.23 (h) Notwithstanding any other provision of law to the 46.24 contrary, the order may establish a ward system in the new 46.25 municipality, in which event the order shall establish not less 46.26 than three nor more than seven wards, each of which shall elect 46.27 one council member. When more than two years have elapsed after 46.28 consolidation, the governing body may, by a four-fifths vote, 46.29 abolish the ward system. 46.30 (i) The new municipality shall assume the name of the most 46.31 populous municipality unless previous to the election another 46.32 name is chosen by joint resolution of a majority of the included 46.33 municipalities or by the consolidation commission. 46.34 (j) The number of license privileges existing in the 46.35 included municipalities prior to consolidation and pursuant to 46.36 state law shall not be diminished as a result of the 47.1 consolidation. 47.2 (k) If the consolidation is denied or defeated in a 47.3 referendum, no proceeding for the consolidation of the same 47.4 municipalities may be initiated within two years from the date 47.5 of the order unless authorized by thedirectorcounty board. 47.6 Subd. 6. [FINAL APPROVAL; PETITION; REFERENDA.] (a) If the 47.7 consolidation was initiated by a petition of the resident voters 47.8 of a municipality, the order for consolidation shall be final 47.9 upon approval by resolution of the city councils in each of the 47.10 affected municipalities unless ten percent or more of the 47.11 resident voters of an affected municipality who voted for 47.12 governor at the last general election petition the city council 47.13 for a referendum on the consolidation. The petition must be 47.14 submitted within 90 days of the final date of the order or the 47.15 date of final approval of the order by the city councils, 47.16 whichever is later. 47.17 (b) Upon receipt and verification of the petition, the 47.18directorcounty board shall order the municipalities to conduct 47.19 separate referenda at a general or special election in each 47.20 municipality on the same day, and the referenda shall be held 47.21 within six months of the receipt of the petition. 47.22 (c) Costs of the respective referenda shall be borne by the 47.23 respective municipality. A majority of those voting in each 47.24 city must approve the proposed consolidation. The results of 47.25 the referenda shall be certified to thedirectorcounty board by 47.26 the chief election judge within ten days after the referenda. 47.27 Thedirectorcounty board shall upon receipt of the certificate 47.28 notify all parties of the election results. 47.29 (d) If the consolidation was initiated by a city council 47.30 resolution of each affected municipality, the order for 47.31 consolidation shall be final unless ten percent or more of the 47.32 resident voters of an affected municipality petition for a 47.33 referendum as provided in paragraph (a). 47.34 (e) If the consolidation was initiated by thedirector47.35 county board, nodirector'sboard's consolidation order 47.36 involving existing municipalities shall become effective unless 48.1 adopted by the council of each affected municipality by a 48.2 majority vote and unless the consolidation order is approved by 48.3 the qualified voters of the affected municipalities at a general 48.4 or special election set according to law. The form of the 48.5 ballot shall be fixed by thedirectorcounty board; and, if a 48.6 majority of the votes cast on the question in each municipality 48.7 are in favor of its adoption, the order shall become effective 48.8 as provided herein. 48.9 (f) Notwithstanding a disapproval of the order for 48.10 consolidation by a city council of an affected municipality 48.11 required to approve the order in paragraph (a) or (e), the order 48.12 for consolidation shall nevertheless be deemed approved by that 48.13 city council if ten percent or more of the resident voters of 48.14 that municipality who voted for governor at the last general 48.15 election petition the city council for a referendum on the 48.16 consolidation as provided in paragraph (a), and a majority of 48.17 those voting in that municipality approve the order for 48.18 consolidation. 48.19 Subd. 7. [DIFFERENTIAL TAXATION FOR UP TO FIVE YEARS.] 48.20 Where one municipality is receiving substantially fewer 48.21 municipal services, thedirectorcounty board may provide that 48.22 the tax rate of the municipality shall be increased in 48.23 substantially equal proportions over a period of not more than 48.24 five years to equality with the tax rate in the remainder of the 48.25 new municipality. The period shall be determined by 48.26 thedirectorcounty board on the basis of the period reasonably 48.27 required to provide substantially equal municipal services. 48.28 Subd. 8. [EFFECTIVE DATE OF CONSOLIDATION.] The 48.29 consolidation shall be effective upon the election and 48.30 qualification of new municipal officers, or at such later date 48.31 as set by the order. 48.32 Sec. 33. Minnesota Statutes 2002, section 414.06, is 48.33 amended to read: 48.34 414.06 [DETACHMENT OF PROPERTY FROM A MUNICIPALITY.] 48.35 Subdivision 1. [INITIATING THE PROCEEDING.] Property which 48.36 is situated within a municipality and abutting the municipal 49.1 boundary, rural in character and not developed for urban 49.2 residential, commercial, or industrial purposes may be detached 49.3 from the municipality according to the following procedure. The 49.4 proceeding may be initiated by submitting to thedirectorcounty 49.5 board a resolution of the municipality to which the land is 49.6 attached or by submitting to thedirectorcounty board a 49.7 petition of all of the property owners of the land to be 49.8 detached if the area is less than 40 acres or of 75 percent of 49.9 the property owners if over 40 acres. The petition or 49.10 resolution shall set forth the boundaries and the area of the 49.11 land to be detached, the number and character of the buildings, 49.12 the resident population, and the municipal improvements, if any, 49.13 in the area. 49.14 Subd. 2. [HEARING, IF NEEDED.] If both a resolution of the 49.15 municipality and a petition by all the property owners are 49.16 submitted, no hearing is necessary. In any other case, upon 49.17 receipt of a petition or resolution, thedirectorcounty board 49.18 shall designate a time and place for a hearing in accordance 49.19 with section 414.09. 49.20 Subd. 3. [ORDER.] Upon completion of the hearing, the 49.21directorcounty board may order the detachment on finding that 49.22 the requisite number of property owners have signed the petition 49.23 if initiated by the property owners, that the property is rural 49.24 in character and not developed for urban residential, commercial 49.25 or industrial purposes, that the property is within the 49.26 boundaries of the municipality and abuts a boundary, that the 49.27 detachment would not unreasonably affect the symmetry of the 49.28 detaching municipality, and that the land is not needed for 49.29 reasonably anticipated future development. Thedirectorcounty 49.30 board may deny the detachment on finding that the remainder of 49.31 the municipality cannot continue to carry on the functions of 49.32 government without undue hardship. Thedirectorcounty board 49.33 may decrease the area of property to be detached and may include 49.34 only a part of the proposed area to be detached. If the tract 49.35 abuts more than one township, it shall become a part of each 49.36 township, being divided by projecting through it the boundary 50.1 line between the townships. The detached area may be relieved 50.2 of the primary responsibility for existing indebtedness of the 50.3 municipality and be required to assume the indebtedness of the 50.4 township of which it becomes a part, in such proportion as 50.5 thedirectorcounty board shall deem just and equitable having 50.6 in view the amount of taxes due and delinquent and the 50.7 indebtedness of each township and the municipality affected, if 50.8 any, and for what purpose the same was incurred, all in relation 50.9 to the benefit inuring to the detached area as a result of the 50.10 indebtedness and the last net tax capacity of the taxable 50.11 property in each township and municipality. 50.12 Subd. 4. [EFFECTIVE DATE OF DETACHMENT.] The detachment 50.13 shall be effective upon the issuance of the order, or at such 50.14 later date, as provided by the order. 50.15 Subd. 5. [COPY TO COUNTY AUDITORS.] A copy of the 50.16 detachment order must be delivered immediately by thedirector50.17 county board to the appropriate county auditors. 50.18 Subd. 6. [TIMING OF TAX LEVY.] For the purposes of 50.19 taxation, if the detachment becomes effective on or before 50.20 August 1 of a levy year, the towns acquiring the detached area 50.21 may levy on it beginning with that same levy year. If the 50.22 detachment becomes effective after August 1 of a levy year, the 50.23 municipality may continue to levy on the detached area for that 50.24 levy year, and the towns acquiring the detached area may not 50.25 levy on it until the following levy year. 50.26 Sec. 34. Minnesota Statutes 2002, section 414.061, is 50.27 amended to read: 50.28 414.061 [CONCURRENT DETACHMENT AND ANNEXATION OF 50.29 INCORPORATED LAND.] 50.30 Subdivision 1. [BOTH MUNICIPALITIES MAY INITIATE THE 50.31 PROCEEDING.] Property of one municipality which abuts another 50.32 may be concurrently detached and annexed by the procedure set 50.33 forth in this section. The proceeding shall be initiated by 50.34 submitting to thedirectorcounty board resolutions of both 50.35 municipalities describing the land and stating their desire to 50.36 detach and annex the land. 51.1 Subd. 2. [ORDER.] If the resolutions are in order, the 51.2directorcounty board may order the detachment and annexation. 51.3 Subd. 3. [EFFECTIVE DATE OF ORDER.] The concurrent 51.4 detachment and annexation shall be effective upon the issuance 51.5 of the order, or at such later date as provided by the order. 51.6 Subd. 3a. [COPY TO COUNTY AUDITORS.] A copy of the 51.7 annexation order must be delivered immediately by thedirector51.8 county board to the appropriate county auditors. 51.9 Subd. 3b. [TIMING OF TAX LEVIES.] For the purposes of 51.10 taxation, if the annexation becomes effective on or before 51.11 August 1 of a levy year, the municipality acquiring the detached 51.12 area of another municipality may levy on it beginning with that 51.13 same levy year. If the annexation becomes effective after 51.14 August 1 of a levy year, the municipality losing the detached 51.15 area may continue to levy on it for that levy year, and the 51.16 municipality acquiring the detached area may not levy on it 51.17 until the following levy year. 51.18 Subd. 4. [DIRECTOR'SCOUNTY BOARD'S INITIATIVE.] The 51.19directorcounty board (1) may initiate proceedings for the 51.20 concurrent detachment and annexation of portions of one 51.21 municipality completely surrounded by another municipality, or 51.22 (2) may act upon the petition of all of the owners of property 51.23 in the completely surrounded area. In such cases thedirector51.24 county board shall conduct hearings and issue an order pursuant 51.25 to section 414.09. In arriving at a decision, thedirector51.26 county board shall consider the factors in section 414.02, 51.27 subdivision 3. Thedirectorcounty board shall order the 51.28 proposed action on finding that it will be for the best 51.29 interests of the municipalities and the property owners. In all 51.30 cases, thedirectorcounty board shall set forth the factors 51.31 which are the basis for the decision. 51.32 Subd. 5. [PROPERTY OWNERS MAY INITIATE.] Property owners 51.33 may initiate proceedings for the concurrent detachment of their 51.34 property from one municipality and its annexation to an adjacent 51.35 municipality by a petition signed by all of them that they 51.36 submit to thedirectorcounty board accompanied by a resolution 52.1 of the city council of at least one of the affected 52.2 municipalities. Thedirectorcounty board shall conduct 52.3 hearings and issue an order pursuant to section 414.09. In 52.4 arriving at a decision, thedirectorcounty board shall consider 52.5 the factors in section 414.02, subdivision 3. Thedirector52.6 county board shall order the proposed action on finding that it 52.7 will be for the best interests of the municipalities and the 52.8 property owner. In all cases, thedirectorcounty board shall 52.9 set forth the factors which are the basis for the decision. 52.10 Sec. 35. Minnesota Statutes 2002, section 414.063, is 52.11 amended to read: 52.12 414.063 [PART OF JOINT AGREEMENTS MAY BE PUT IN ORDERS.] 52.13 After notice and hearing as provided in section 414.09, the 52.14directorcounty board may include provisions of joint agreements 52.15 between political subdivisions in the orders. 52.16 Sec. 36. Minnesota Statutes 2002, section 414.067, 52.17 subdivision 1, is amended to read: 52.18 Subdivision 1. [TOWNSHIP OR MUNICIPALITY DIVIDED.] 52.19 Whenever thedirectorcounty board divides an existing 52.20 governmental unit, thedirectorcounty board may apportion the 52.21 property and obligations between the governmental unit adding 52.22 territory and the governmental unit from which the territory was 52.23 obtained. The apportionment shall be made in a just and 52.24 equitable manner having in view the value of the existing 52.25 township or municipal property located in the area to be added, 52.26 the assets, value, and location of all the taxable property in 52.27 the existing township or municipality, the indebtedness, the 52.28 taxes due and delinquent, other revenue accrued but not paid to 52.29 the existing township or municipality and the ability of any 52.30 remainder of the township or municipality to function as an 52.31 effective governmental unit. The order shall not relieve any 52.32 property from any tax liability for payment for any bonded 52.33 obligation, but the taxable property in the new municipality may 52.34 be made primarily liable thereon. 52.35 Sec. 37. Minnesota Statutes 2002, section 414.067, 52.36 subdivision 3, is amended to read: 53.1 Subd. 3. [REVISION OF TAX RECORDS; REDISTRIBUTION OF 53.2 LEVIES.] In an apportionment made under this section, the 53.3directorcounty board may order the county auditor to revise tax 53.4 records and respread levies at any time prior to December 15 or 53.5 order the county treasurer to redistribute taxes levied and 53.6 receivable. 53.7 Sec. 38. Minnesota Statutes 2002, section 414.07, 53.8 subdivision 2, is amended to read: 53.9 Subd. 2. [GROUNDS FOR APPEAL.] (a) Any person aggrieved by 53.10 any order issued under this chapter may appeal to the district 53.11 court upon the following grounds: 53.12 (1) that the order was issued without jurisdiction to act; 53.13 (2) that the order exceeded the orderer's jurisdiction; 53.14 (3) that the order is arbitrary, fraudulent, capricious or 53.15 oppressive or in unreasonable disregard of the best interests of 53.16 the territory affected; or 53.17 (4) that the order is based upon an erroneous theory of law. 53.18 (b) The appeal shall be taken in the district court in the 53.19 county in which the majority of the area affected is located. 53.20 The appeal shall not stay the effect of the order. All notices 53.21 and other documents shall be served on both thedirector and the53.22attorney general's assistant assigned to the director for53.23purposes of this chaptercounty board and the county attorney. 53.24 (c) If the court determines that the action involved is 53.25 unlawful or unreasonable or is not warranted by the evidence in 53.26 case an issue of fact is involved, the court may vacate or 53.27 suspend the action involved, in whole or in part, as the case 53.28 requires. The matter shall then be remanded for further action 53.29 in conformity with the decision of the court. 53.30 (d) To render a review of an order effectual, the aggrieved 53.31 person shall file with the court administrator of the district 53.32 court of the county in which the majority of the area is 53.33 located, within 30 days of the order, an application for review 53.34 together with the grounds upon which the review is sought. 53.35 (e) An appeal lies from the district court as in other 53.36 civil cases. 54.1 Sec. 39. Minnesota Statutes 2002, section 414.08, is 54.2 amended to read: 54.3 414.08 [DIRECTORCOUNTY BOARD MAY APPEAL FROM DISTRICT 54.4 COURT.] 54.5 An appeal may be taken under the rules of civil appellate 54.6 procedure by thedirectorcounty board from a final order or 54.7 judgment made or rendered by the district court when 54.8 thedirectorcounty board determines that the final order or 54.9 judgment adversely affects the public interest. 54.10 Sec. 40. Minnesota Statutes 2002, section 414.09, is 54.11 amended to read: 54.12 414.09 [UNIFORM PROCEDURES.] 54.13 Subdivision 1. [HEARINGS.] (a) Proceedings initiated by 54.14 the submission of an initiating document or by thedirector54.15 county board shall come on for hearing within 30 to 60 days from 54.16 receipt of the document by thedirectorcounty board or from the 54.17 date of thedirector'scounty board's action and theperson54.18conducting the hearingcounty board must submit an order no 54.19 later than one year from the date of the day of the first 54.20 hearing. 54.21 (b) Theplace of thehearingshallmust bein the county54.22where a majority of the affected territory is situated, and54.23shall beheld in the county board's meeting room or in another 54.24 location in the affected territory established for the 54.25 convenience of the parties. 54.26 (c) Thedirectorcounty board shall mail notice of the 54.27 hearing to the following parties: the township or municipality 54.28 presently governing the affected territory; any township or 54.29 municipality abutting the affected territory;the county where54.30the affected territory is situated;and each planning agency 54.31 which has jurisdiction over the affected area. 54.32 (d) Thedirectorcounty board shall see that notice of the 54.33 hearing is published for two successive weeks in a legal 54.34 newspaper of general circulation in the affected area. 54.35 (e) When thedirectorcounty board exercises authority to 54.36 change the boundaries of the affected area so as to increase the 55.1 quantity of the land, the hearing shall be recessed and 55.2 reconvened upon two weeks' published notice in a legal newspaper 55.3 of general circulation in the affected area. 55.4 Subd. 2. [TRANSMITTAL OF ORDER.] Thedirectorcounty board 55.5 shall see that copies of the order are mailed to all parties 55.6 entitled to mailed notice of hearing under subdivision 1, the 55.7 secretary of state, the department of revenue, the state 55.8 demographer, individual property owners if initiated in that 55.9 manner, affected county auditor, and any other party of record. 55.10 The affected county auditor shall record the order against the 55.11 affected property. 55.12 Subd. 3. [ELECTIONS OF MUNICIPAL OFFICERS.] (a) An order 55.13 approving an incorporation or consolidation pursuant to this 55.14 chapter, or an order requiring an election under section 55.15 414.031, subdivision 4a, shall set a date forthisan election 55.16 of new municipal officers not less than 45 days nor more than 60 55.17 days after the issuance ofsuchthe order. 55.18 (b) Thedirectorcounty board shall appoint an acting clerk 55.19 for election purposes, at least three election judges who shall 55.20 be residents of the new municipality, and shall designate 55.21 polling places within the new municipality. 55.22 (c) The acting clerk shall prepare the official election 55.23 ballot. 55.24 (d)Affidavits of candidacy may be filed byAny person 55.25 eligible to hold municipal office may file an affidavit of 55.26 candidacy not more than four weeks nor less than two weeks 55.27 before the date designated in the order for the election. 55.28 (e) The election shall be conducted in conformity with the 55.29 charter and the laws for conducting municipal elections insofar 55.30 as applicable. 55.31 (f) Any person eligible to vote at a township or municipal 55.32 election within the area of the new municipality, is eligible to 55.33 vote at such election. 55.34 (g) Any excess in the expense of conducting the election 55.35 over receipts from filing fees shall be a charge against the new 55.36 municipality; any excess of receipts shall be deposited in the 56.1 treasury of the new municipality. 56.2 Sec. 41. Minnesota Statutes 2002, section 414.12, is 56.3 amended to read: 56.4 414.12 [DIRECTOR'SCOUNTY BOARD'S POWERS.] 56.5 Subdivision 1. [ALTERNATIVE DISPUTE RESOLUTION.] (a) 56.6 Notwithstanding anything to the contrary in sections 414.01 to 56.7 414.09, thedirectorcounty board, upon consultation with 56.8 affected parties and considering the procedures and principles 56.9 established in sections 414.01 to 414.09, and Laws 1997, chapter 56.10 202, article 4, sections 1 to 13, may require that disputes over 56.11 proposed boundary adjustments be resolved by means of 56.12 alternative dispute resolution processes in place of hearings 56.13 that would otherwise be required pursuant to sections 414.01 to 56.14 414.09, including those provided in chapter 14, in the execution 56.15 of thedirector'sboard's duties under this chapter. 56.16 (b) Alternative dispute resolution processes that may be 56.17 required include: 56.18 (1) the contested case procedures provided by sections 56.19 14.57 to 14.62; 56.20 (2) the mediation and arbitration process provided by 56.21 sections 572A.015 to 572A.03; or 56.22 (3) another mediation and arbitration process ordered by 56.23 thedirectorcounty board. 56.24 Subd. 2. [DELEGATION OF AUTHORITY.] (a) Thedirector56.25 county board may, with the agreement of the chief administrative 56.26 law judge, delegate to the office of administrative hearings, in 56.27 any individual case or group of cases, thedirector'sboard's 56.28 authority and responsibility to conduct hearings and issue final 56.29 orders related to the hearings under sections 414.01 to 414.09. 56.30 (b) In the case of detachment of lands from a municipality, 56.31 if the parties do not agree to resolve a boundary adjustment 56.32 matter by mediation or arbitration, then the case shall be 56.33 referred to an administrative law judge to conduct hearings and 56.34 issue final orders related to the hearings under sections 414.01 56.35 to 414.09. 56.36 Subd. 3. [COST OF PROCEEDINGS.] (a) The parties to any 57.1 matter directed to alternative dispute resolution under 57.2 subdivision 1 or delegated to the office of administrative 57.3 hearings under subdivision 2 must pay the costs of the 57.4 alternative dispute resolution process or hearing in the 57.5 proportions that they agree to. 57.6 (b) Notwithstanding section 14.53 or other law, theoffice57.7of strategic and long-range planningcounty is not liable for 57.8 the costs. 57.9 (c) If the parties do not agree to a division of the costs 57.10 before the commencement of mediation, arbitration, or hearing, 57.11 the costs must be allocated on an equitable basis by the 57.12 mediator, arbitrator, or chief administrative law judge. 57.13 (d) The chief administrative law judge may contract with 57.14 the parties to a matter directed or delegated to the office of 57.15 administrative hearings under subdivisions 1 and 2 for the 57.16 purpose of providing administrative law judges and reporters for 57.17 an administrative proceeding or alternative dispute resolution. 57.18 (e) The chief administrative law judge shall assess the 57.19 cost of services rendered as provided by section 14.53. 57.20 Subd. 4. [PARTIES.] In this section, "party" means: 57.21 (1) a property owner, group of property owners, 57.22 municipality, or township that files an initiating document or 57.23 timely objection under this chapter; 57.24 (2) the municipality or township within which the subject 57.25 area is located; 57.26 (3) a municipality abutting the subject area; and 57.27 (4) any other person, group of persons, or governmental 57.28 agency residing in, owning property in, or exercising 57.29 jurisdiction over the subject area that files with thedirector57.30 county board a notice of appearance within 14 days of 57.31 publication of the notice required by section 414.09. 57.32 Sec. 42. Minnesota Statutes 2002, section 473.129, 57.33 subdivision 5, is amended to read: 57.34 Subd. 5. [LOCAL GOVERNMENTAL PARTICIPATION.] The 57.35 metropolitan council may (1) participate as a party in any 57.36 proceedings originatingbefore the Minnesota municipal board58.1 under chapter 414, if the proceedings involve the change in a 58.2 boundary of a governmental unit in the metropolitan area, and (2) 58.3 conduct studies of the feasibility of annexing, enlarging, or 58.4 consolidating units in the metropolitan area. 58.5 Sec. 43. Minnesota Statutes 2002, section 473F.13, 58.6 subdivision 1, is amended to read: 58.7 Subdivision 1. [CERTIFICATION OF CHANGE IN STATUS.] If a 58.8 municipality is dissolved, is consolidated with all or part of 58.9 another municipality, annexes territory, has a portion of its 58.10 territory detached from it, or is newly incorporated, the 58.11 secretary of state shall immediately certify that fact to the 58.12 commissioner of revenue. The secretary of state shall also 58.13 certify to the commissioner of revenue the current population of 58.14 the new, enlarged, or successor municipality, if determinedby58.15the Minnesota municipal boardincident to consolidation, 58.16 annexation, or incorporation proceedings. The population so 58.17 certified shall govern for purposes of sections 473F.01 to 58.18 473F.13 until the metropolitan council files its first 58.19 population estimate as of a later date with the commissioner of 58.20 revenue. If an annexation of unincorporated land occurs without 58.21 proceedings before theMinnesota municipal boardcounty board as 58.22 provided in chapter 414, the population of the annexing 58.23 municipality as previously determined shall continue to govern 58.24 for purposes of sections 473F.01 to 473F.13 until the 58.25 metropolitan council files its first population estimate as of a 58.26 later date with the commissioner of revenue. 58.27 Sec. 44. Minnesota Statutes 2002, section 473H.14, is 58.28 amended to read: 58.29 473H.14 [ANNEXATION PROCEEDINGS.] 58.30 Agricultural preserve land within a township shall not be 58.31 annexed to a municipality pursuant to chapter 414, without a 58.32 specific finding by theMinnesota municipal boardcounty board 58.33 as provided in chapter 414 that either (a) the expiration period 58.34 as provided for in section 473H.08 has begun; (b) the township 58.35 due to size, tax base, population or other relevant factors 58.36 would not be able to provide normal governmental functions and 59.1 services; or (c) the agricultural preserve would be completely 59.2 surrounded by lands within a municipality. 59.3 This section shall not apply to annexation agreements 59.4 approvedby the Minnesota municipal boardprior to creation of 59.5 the preserve. 59.6 Sec. 45. Minnesota Statutes 2002, section 572A.015, is 59.7 amended to read: 59.8 572A.015 [CHAPTER 414 DISPUTES; MEDIATION.] 59.9 Subdivision 1. [FILING.] As provided by section 414.10, if 59.10 an initiating document or timely objection under chapter 414 is 59.11 filed with themunicipalcounty board, the filing party, 59.12 jurisdiction, or jurisdictions may also file a written request 59.13 for mediation with the bureau of mediation services within 30 59.14 days of filing the initiating document or timely objection. The 59.15 request for mediation must contain the written consent to the 59.16 mediation and arbitration process by all the parties, as defined 59.17 in section 414.10, subdivision 1. 59.18 Subd. 2. [MEDIATION.] Within ten days of receiving a 59.19 request for mediation, the bureau shall provide written notice 59.20 of the request for mediation to the parties and provide a list 59.21 of neutrals experienced in land use planning and local 59.22 government issues obtained from the supreme court,Minnesota59.23municipal board,bureau of mediation services, Minnesota state 59.24 bar association, Hennepin county bar association, office of 59.25 dispute resolution, and others. Within 30 days thereafter, the 59.26 affected parties, as defined in section 414.10, subdivision 1, 59.27 shall select a mediator from the list of neutrals or someone 59.28 else acceptable to the parties and submit to mediation for a 59.29 period of 30 days facilitated by the bureau. If the dispute 59.30 remains unresolved after the close of the 30-day mediation 59.31 period, the bureau shall prepare a report of its recommendations 59.32 and transmit the report within 30 days to the parties. Within 59.33 60 days after the date of issuance of the mediator's report, the 59.34 dispute shall be submitted to binding arbitration as provided in 59.35 this chapter. The mediator's report submitted to the parties is 59.36 informational only and is not admissible in arbitration. 60.1 Sec. 46. Minnesota Statutes 2002, section 572A.02, 60.2 subdivision 5, is amended to read: 60.3 Subd. 5. [DECISION FACTORS.]In comprehensive planning60.4disputes, the arbitration panel shall consider the goals stated60.5in section 4A.08 and the following factors in making a60.6decision.Inall otherdisputes brought under this section, the 60.7 arbitration panel shall consider the following factors in making 60.8 a decision: 60.9 (1) present population and number of households, past 60.10 population, and projected population growth of the subject area 60.11 and adjacent units of local government; 60.12 (2) quantity of land within the subject area and adjacent 60.13 units of local government; and natural terrain including 60.14 recognizable physical features, general topography, major 60.15 watersheds, soil conditions, and such natural features as 60.16 rivers, lakes, and major bluffs; 60.17 (3) degree of contiguity of the boundaries between the 60.18 municipality and the subject area; 60.19 (4) present pattern of physical development, planning, and 60.20 intended land uses in the subject area and the municipality 60.21 including residential, industrial, commercial, agricultural, and 60.22 institutional land uses and the impact of the proposed action on 60.23 those land uses; 60.24 (5) the present transportation network and potential 60.25 transportation issues, including proposed highway development; 60.26 (6) land use controls and planning presently being utilized 60.27 in the municipality and the subject area, including 60.28 comprehensive plans for development in the area and plans and 60.29 policies of the metropolitan council, and whether there are 60.30 inconsistencies between proposed development and existing land 60.31 use controls and the reasons therefore; 60.32 (7) existing levels of governmental services being provided 60.33 in the municipality and the subject area, including water and 60.34 sewer service, fire rating and protection, law enforcement, 60.35 street improvements and maintenance, administrative services, 60.36 and recreational facilities and the impact of the proposed 61.1 action on the delivery of said services; 61.2 (8) existing or potential environmental problems and 61.3 whether the proposed action is likely to improve or resolve 61.4 these problems; 61.5 (9) plans and programs by the municipality for providing 61.6 needed governmental services to the subject area; 61.7 (10) an analysis of the fiscal impact on the municipality, 61.8 the subject area, and adjacent units of local government, 61.9 including net tax capacity and the present bonded indebtedness, 61.10 and the local tax rates of the county, school district, and 61.11 township; 61.12 (11) relationship and effect of the proposed action on 61.13 affected and adjacent school districts and communities; 61.14 (12) adequacy of town government to deliver services to the 61.15 subject area; 61.16 (13) analysis of whether necessary governmental services 61.17 can best be provided through the proposed action or another type 61.18 of boundary adjustment; and 61.19 (14) if only a part of a township is annexed, the ability 61.20 of the remainder of the township to continue or the feasibility 61.21 of it being incorporated separately or being annexed to another 61.22 municipality. 61.23 Any party to the proceeding may present evidence and testimony 61.24 on any of the above factors at the hearing on the matter. 61.25 Sec. 47. Minnesota Statutes 2002, section 572A.02, 61.26 subdivision 6, is amended to read: 61.27 Subd. 6. [DECISION.] The arbitrators, after a hearing on 61.28 the matter, shall make a decision regarding the dispute within 61.29 60 days and transmit an order to the parties and theoffice of61.30strategic and long-range planning or the municipalcounty 61.31 board. Unless appealed by an aggrieved party within 30 days of 61.32 receipt of the arbitration panel's order by themunicipalcounty 61.33 board, themunicipalboard shall execute an order in accordance 61.34 with the arbitration panel's order and shall cause copies of the 61.35 same to be mailed to all parties entitled to mailed notice, the 61.36 secretary of state, the department of revenue, the state 62.1 demographer, individual property owners if initiated in that 62.2 manner, the affected county auditor, and any other party of 62.3 record. The affected county auditor shall record the order 62.4 against the affected property. 62.5 Sec. 48. Minnesota Statutes 2002, section 572A.03, 62.6 subdivision 1, is amended to read: 62.7 Subdivision 1. [DECISION STANDARDS.] The arbitration 62.8 panel, based upon the factors in section 572A.02, subdivision 5, 62.9 shall decide the matter based upon the decision standards in 62.10subdivisions 2 to 6this section. 62.11 Sec. 49. [REPEALER.] 62.12 Minnesota Statutes 2002, sections 414.01, subdivisions 1, 62.13 7a, and 10; 414.011, subdivision 11; and 414.051, are repealed. 62.14 Sec. 50. [EFFECTIVE DATE.] 62.15 This article is effective July 1, 2003.