1.1 	A bill for an act
1.2 	relating to local government; providing for an
1.3 	alternative annexation process; proposing coding for
1.4 	new law in Minnesota Statutes, chapter 414; repealing
1.5 	Minnesota Statutes 2004, sections 414.031; 414.033.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [414.0326] ALTERNATIVE ANNEXATION PROCESS.
1.8 		Subdivision 1.Alternative to orderly annexation. The
1.9 	process in this section is an alternative to orderly annexation
1.10 	under section 414.0325, when orderly annexation is not feasible.
1.11 		Subd. 2.Service improvement plan. (a) A municipality or
1.12 	township that determines that orderly annexation under section
1.13 	414.0325 is not feasible may proceed under this section to
1.14 	accomplish annexation of any unincorporated territory.
1.15 	(b) Within 30 months of the proposed annexation, the
1.16 	municipality must adopt a plan setting out a detailed
1.17 	description of the service improvements for the unincorporated
1.18 	territory to be annexed and planned to be completed within the
1.19 	first 30 months after the annexation is approved.
1.20 	(c) The kinds of services to be improved as a result of the
1.21 	annexation include, but are not limited to, improvements to:
1.22 	(1) sanitary sewer or septic system;
1.23 	(2) water;
1.24 	(3) roads and bridges;
1.25 	(4) ditches;
2.1 	(5) parks and playgrounds;
2.2 	(6) police, fire, and emergency services; and 
2.3 	(7) mowing and snow plowing.
2.4 	(d) The plan must demonstrate the fiscal stability to
2.5 	complete the improvements.
2.6 	(e) The detailed plan must be made readily accessible to
2.7 	the public within two weeks after its adoption.
2.8 	(f) Within 30 days after the plan is adopted, the adopted
2.9 	service improvement plan must be presented to the county board
2.10 	to determine whether, and if so, to what extent, the plan
2.11 	conflicts with the overall comprehensive plan of the county.
2.12 		Subd. 3.If no county conflict. If the county board
2.13 	determines that there is no conflict with its comprehensive plan
2.14 	under subdivision 2, the county board must so notify the
2.15 	municipality, and the municipality may proceed with orderly
2.16 	annexation as provided in section 414.0325.
2.17 		Subd. 4.If county conflict:  public hearing. If the
2.18 	county board determines that a conflict exists between the
2.19 	proposed service improvement plan and the county's comprehensive
2.20 	plan under subdivision 2, the county board must set a public
2.21 	hearing jointly with the municipality and the affected
2.22 	township.  The hearing must be held within 45 days of the county
2.23 	board's finding of a conflict.  At the hearing, members of the
2.24 	public must be permitted to testify regarding the plan for
2.25 	service improvements and its conflict, if any, with the county
2.26 	comprehensive plan.  If the county planning commission has made
2.27 	a recommendation to the county board on this matter, the
2.28 	recommendation of the planning commission must be made available
2.29 	to the hearing participants and the public.
2.30 		Subd. 5.Resolving the conflict. Following the public
2.31 	hearing, the affected governmental units must attempt to resolve
2.32 	the conflict, if any, between the county board's comprehensive
2.33 	plan and the municipality's proposed plan for service
2.34 	improvements.  If resolution is agreed to by the parties, the
2.35 	annexation may proceed as provided in section 414.0325.
2.36 		Subd. 6.If no resolution; other remedies. If the
3.1 	conflict cannot be resolved, any party may seek any other remedy
3.2 	under section 414.12 to accomplish or avoid the annexation.
3.3 		Subd. 7.30 months to complete improvements. If the
3.4 	annexation order is issued under section 414.0325, the complete
3.5 	service improvement plan adopted by the municipality must be
3.6 	finished in no more than 30 months from the date of the
3.7 	annexation order.
3.8 		Subd. 8.Proration of town property tax base. During the
3.9 	period of up to 60 months from the time the service improvement
3.10 	plan is first adopted until the service improvements are
3.11 	completed, the property tax base of the unincorporated area
3.12 	subject to annexation remains with the town.  As each separate
3.13 	service improvement is finished, the prorated amount of the
3.14 	property tax base in the unincorporated territory proposed for
3.15 	annexation comes under the control of the city.  The proration
3.16 	is based on the number of service improvements completed as a
3.17 	percentage of the total number of service improvements to be
3.18 	made.
3.19 		Subd. 9.Remaining debt. If debt remains unpaid in any
3.20 	part of the unincorporated territory that is the subject of the
3.21 	annexation, the municipality may either prepay the entire
3.22 	balance remaining to retire or defease the debt or reimburse the
3.23 	township each year in the amount of the debt service paid for
3.24 	the territory subject to the annexation during that year.

3.25 	Sec. 2. REPEALER.
 3.26 	Minnesota Statutes 2004, sections 414.031 and 414.033, are
3.27 	repealed.