1.1 	A bill for an act
1.2 	relating to local government; prohibiting certain payments in annexations;
1.3 	amending Minnesota Statutes 2006, section 414.036.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2006, section 414.036, is amended to read:
1.6 	414.036 CITY REIMBURSEMENT TO TOWN TO ANNEX TAXABLE 
1.7 	PROPERTY.
1.8 	~~Unless otherwise agreed to by the annexing municipality and the affected town,~~
1.9 	When an order or other approval under this chapter annexes part of a town to a 
1.10 	municipality, the order or other approval must provide a reimbursement from the 
1.11 	municipality to the town for all or part of the taxable property annexed as part of the 
1.12 	order. The reimbursement shall be completed in substantially equal payments over not 
1.13 	less than two nor more than eight years from the time of annexation. The municipality 
1.14 	must reimburse the township for all special assessments assigned by the township to the 
1.15 	annexed property, and any portion of debt incurred by the town prior to the annexation 
1.16 	and attributable to the property to be annexed but for which no special assessments are 
1.17 	outstanding, in substantially equal payments over a period of not less than two or no more 
1.18 	than eight years. No other payments or consideration may be made by a municipality to 
1.19 	the township.