1.1                          A bill for an act 
  1.2             relating to local government; removing annexation from 
  1.3             the municipal board's jurisdiction; providing for 
  1.4             annexation by mutual agreement as the exclusive means 
  1.5             of annexation; amending Minnesota Statutes 1998, 
  1.6             sections 40A.121; 115.49, subdivision 2a; 204B.14, 
  1.7             subdivision 5; 272.67, subdivision 1; 276A.09; 414.01, 
  1.8             subdivisions 1, 2, and 14; 414.067, subdivision 2; 
  1.9             462.3535, subdivision 5; 465.87, subdivision 1a; 
  1.10            473F.13, subdivision 1; 473H.14; and 572A.02, 
  1.11            subdivision 5; proposing coding for new law as 
  1.12            Minnesota Statutes, chapter 414A; repealing Minnesota 
  1.13            Statutes 1998, sections 414.031, subdivisions 1, 3, 4, 
  1.14            4a, and 6; 414.0325; 414.033, subdivisions 1, 2, 2b, 
  1.15            3, 5, 6, 7, 10, 11, 12, and 13; 414.0335; 414.035; 
  1.16            414.036; 414.061, subdivisions 1, 2, 3, 4, and 5; and 
  1.17            572A.03, subdivisions 4, 5, and 8. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1 
  1.20                             ANNEXATION 
  1.21     Section 1.  [414A.01] [SCOPE.] 
  1.22     The procedures in this chapter are the sole procedures for 
  1.23  municipal annexation in the state.  This chapter does not apply 
  1.24  to procedures relating to municipal incorporation, 
  1.25  consolidation, and detachment, which are governed by the 
  1.26  procedures in chapter 414. 
  1.27     Sec. 2.  [414A.02] [DEFINITIONS.] 
  1.28     The definitions in section 414.011 apply to this chapter 
  1.29  unless otherwise indicated. 
  1.30     Sec. 3.  [414A.03] [ANNEXATION BY JOINT RESOLUTION.] 
  1.31     Subdivision 1.  [JOINT RESOLUTION.] One or more townships 
  2.1   and one or more municipalities may provide for annexation of an 
  2.2   unincorporated area according to an annexation plan adopted by a 
  2.3   joint resolution of the affected townships and municipalities, 
  2.4   after public notice and comment, as required in this chapter. 
  2.5      Subd. 2.  [ANNEXATION PLAN.] The annexation plan must 
  2.6   provide information on the factors listed in section 414.02, 
  2.7   subdivision 3, paragraphs (a) to (m), and any other information 
  2.8   the affected townships and municipalities determine would be 
  2.9   useful or of interest to interested persons or adjacent local 
  2.10  government units. 
  2.11     Sec. 4.  [414A.04] [PROCEDURES.] 
  2.12     Subdivision 1.  [PRIOR NOTICE REQUIRED.] Before adopting 
  2.13  the joint resolution providing for annexation, the participating 
  2.14  municipalities and townships must notify all potentially 
  2.15  interested or affected persons of the proposed annexation, 
  2.16  including, but not limited to, potentially affected property 
  2.17  owners, adjacent municipalities and townships, each county in 
  2.18  which a participating municipality or township lies, special 
  2.19  service districts in the affected area, and the metropolitan 
  2.20  council if the annexation is in the metropolitan area, as 
  2.21  defined in section 473.121, subdivision 2. 
  2.22     Subd. 2.  [PRIOR NOTICE CONTENTS.] The notice required by 
  2.23  subdivision 1 must include a summary of the information in the 
  2.24  proposed annexation plan. 
  2.25     Subd. 3.  [COMMENT; OBJECTION.] The proposers shall provide 
  2.26  an opportunity for review of and comment on the annexation 
  2.27  proposal. 
  2.28     Subd. 4.  [FILING OF JOINT RESOLUTION.] After adoption of 
  2.29  the joint resolution for annexation by each municipality and 
  2.30  township, the joint resolution must be filed with the secretary 
  2.31  of state, the commissioner of revenue, the state demographer, 
  2.32  the county auditor for each county in which a participating 
  2.33  municipality or township lies, the metropolitan council if it is 
  2.34  in the metropolitan area, and any person who asks to be notified.
  2.35     Subd. 5.  [EFFECTIVE DATE.] An annexation is effective at 
  2.36  the time provided in the joint resolution for annexation. 
  3.1      Sec. 5.  [414A.05] [POLLUTION EXCEPTION; ANNEXATION BY 
  3.2   ORDINANCE.] 
  3.3      Subdivision 1.  [GENERAL.] Unincorporated property abutting 
  3.4   a municipality may be annexed to the municipality by ordinance 
  3.5   as provided for in this section. 
  3.6      Subd. 2.  [CONDITIONS.] If a determination or order by the 
  3.7   pollution control agency, under section 115.49 or other similar 
  3.8   statute is made, that cooperation by contract is necessary and 
  3.9   feasible between a municipality and an unincorporated area 
  3.10  located outside the existing corporate limits of a municipality, 
  3.11  the municipality required to provide or extend through a 
  3.12  contract a governmental service to an unincorporated area, 
  3.13  during the statutory 90-day period provided in section 115.49 to 
  3.14  formulate a contract, may in the alternative to formulating a 
  3.15  service contract to provide or extend the service, declare the 
  3.16  unincorporated area described in the pollution control agency's 
  3.17  determination letter or order annexed to the municipality by 
  3.18  adopting an ordinance. 
  3.19     Subd. 3.  [FILING.] The annexation ordinance must be filed 
  3.20  with the secretary of state, the commissioner of revenue, the 
  3.21  state demographer, the county auditor for each county in which 
  3.22  the municipality or annexed area lies, the metropolitan council 
  3.23  if it is in the metropolitan area, and any person who asks to be 
  3.24  notified. 
  3.25     Subd. 4.  [EFFECTIVE DATE.] The ordinance is final and the 
  3.26  annexation is effective at the time provided in the ordinance 
  3.27  after the ordinance has been filed under subdivision 3. 
  3.28                             ARTICLE 2 
  3.29                       CONFORMING AMENDMENTS 
  3.30     Section 1.  Minnesota Statutes 1998, section 40A.121, is 
  3.31  amended to read: 
  3.32     40A.121 [ANNEXATION PROCEEDINGS.] 
  3.33     Subdivision 1.  [ANNEXATION PROHIBITED.] Land within an 
  3.34  agricultural preserve that is within a township may not be 
  3.35  annexed to a municipality under chapter 414, unless the 
  3.36  Minnesota municipal board finds that either: 
  4.1      (1) the owner or the county has initiated termination of 
  4.2   the zone under section 40A.11; 
  4.3      (2) because of size, tax base, population or other relevant 
  4.4   factors, the township would not be able to provide normal 
  4.5   governmental functions and services; or 
  4.6      (3) the zone would be completely surrounded by lands within 
  4.7   a municipality. 
  4.8      Subd. 2.  [EXCEPTION.] This section does not apply to 
  4.9   annexation agreements approved by the Minnesota municipal board 
  4.10  in effect prior to creation of the zone. 
  4.11     Sec. 2.  Minnesota Statutes 1998, section 115.49, 
  4.12  subdivision 2a, is amended to read: 
  4.13     Subd. 2a.  [EXTENSION OF SERVICE.] If a determination or 
  4.14  order is made by the pollution control agency under this section 
  4.15  that cooperation by contract is necessary and feasible between a 
  4.16  municipality and an unincorporated area located outside the 
  4.17  existing corporate limits of a municipality, the municipality 
  4.18  being required to provide or extend through a contract a 
  4.19  governmental service to an unincorporated area, during the 
  4.20  statutory 90-day period provided in this section to formulate a 
  4.21  contract, may in the alternative to formulating a service 
  4.22  contract to provide or extend the service, declare the 
  4.23  unincorporated area as described in the pollution control 
  4.24  agency's determination letter or order annexed to the 
  4.25  municipality under section 414.0335 414A.04. 
  4.26     Sec. 3.  Minnesota Statutes 1998, section 204B.14, 
  4.27  subdivision 5, is amended to read: 
  4.28     Subd. 5.  [PRECINCT BOUNDARIES; DESCRIPTION; MAPS.] When a 
  4.29  precinct boundary has been changed, the municipal clerk shall 
  4.30  immediately notify the secretary of state.  Upon receipt of this 
  4.31  notice or a notice of annexation from the Minnesota municipal 
  4.32  board affected municipalities, the secretary of state shall 
  4.33  provide the municipal clerk with a base map on which the clerk 
  4.34  shall note the boundary change.  The clerk shall return the 
  4.35  corrected base map to the secretary of state within 30 days 
  4.36  after the boundary change was made.  The secretary of state 
  5.1   shall update the precinct boundary database, prepare a corrected 
  5.2   precinct map, and provide the corrected precinct map to the 
  5.3   county auditor and the municipal clerk who shall make them 
  5.4   available for public inspection.  The county auditor shall 
  5.5   prepare and file precinct boundary maps for precincts in 
  5.6   unorganized territories in the same manner as provided for 
  5.7   precincts in municipalities.  For every election held in the 
  5.8   municipality the election judges shall be furnished precinct 
  5.9   maps as provided in section 201.061, subdivision 6.  If a 
  5.10  municipality changes the boundary of an election precinct, the 
  5.11  county auditor shall notify each school district with territory 
  5.12  affected by the boundary change at least 30 days before the 
  5.13  effective date of the change.  
  5.14     Sec. 4.  Minnesota Statutes 1998, section 272.67, 
  5.15  subdivision 1, is amended to read: 
  5.16     Subdivision 1.  Any city however organized, except in those 
  5.17  counties situated in a metropolitan area as defined in Minnesota 
  5.18  Statutes 1961, Section 473.02, Subdivision 5, which contain 
  5.19  cities of the first class, may by ordinance adopted in the 
  5.20  manner provided in this section divide its area into an urban 
  5.21  service district and a rural service district, constituting 
  5.22  separate taxing districts for the purpose of all municipal 
  5.23  property taxes except those levied for the payment of bonds and 
  5.24  judgments and interest thereon.  In proceedings for annexation, 
  5.25  incorporation, or consolidation being conducted pursuant to 
  5.26  chapter 414, the Minnesota municipal board may by order divide a 
  5.27  municipality into an urban service district and a rural service 
  5.28  district, such districts to be designated by the board in 
  5.29  accordance with the criteria set out in subdivision 2.  An 
  5.30  annexation agreement entered into pursuant to chapter 414A may 
  5.31  divide a municipality into an urban service district and a rural 
  5.32  service district in accordance with the criteria set out in 
  5.33  subdivision 2.  Thereafter, said urban service district and 
  5.34  rural service district may be changed in the same manner that an 
  5.35  ordinance or amendment is changed in accordance with this 
  5.36  section.  
  6.1      Sec. 5.  Minnesota Statutes 1998, section 276A.09, is 
  6.2   amended to read: 
  6.3      276A.09 [CHANGE IN STATUS OF MUNICIPALITY.] 
  6.4      If a municipality is dissolved, is consolidated with all or 
  6.5   part of another municipality, annexes territory, has a portion 
  6.6   of its territory detached from it, or is newly incorporated, the 
  6.7   secretary of state shall immediately certify that fact to the 
  6.8   commissioner of revenue.  The secretary of state shall also 
  6.9   certify to the commissioner of revenue the current population of 
  6.10  the new, enlarged, or successor municipality, if determined by 
  6.11  the Minnesota municipal board incident to consolidation, 
  6.12  annexation, or incorporation proceedings.  The population so 
  6.13  certified shall govern for purposes of sections 276A.01 to 
  6.14  276A.09 until the state demographer files the first population 
  6.15  estimate as of a later date with the commissioner of revenue.  
  6.16  If an For annexation of unincorporated land occurs without 
  6.17  proceedings before the Minnesota municipal board, the population 
  6.18  of the annexing municipality as previously determined shall 
  6.19  continue to govern for purposes of sections 276A.01 to 276A.09 
  6.20  until the state demographer files the first population estimate 
  6.21  as of a later date with the commissioner of revenue. 
  6.22     Sec. 6.  Minnesota Statutes 1998, section 414.01, 
  6.23  subdivision 1, is amended to read: 
  6.24     Subdivision 1.  [PURPOSE.] The Minnesota municipal board is 
  6.25  hereby created to conduct proceedings, make determinations and 
  6.26  issue orders for the creation of a municipality, the combination 
  6.27  of two or more governmental units, or the alteration of a 
  6.28  municipal boundary. 
  6.29     The legislature finds that:  (1) sound urban development 
  6.30  and preservation of agricultural land and open spaces through 
  6.31  land use planning is essential to the continued economic growth 
  6.32  of this state; (2) municipal government most efficiently 
  6.33  provides governmental services in areas intensively developed 
  6.34  for residential, commercial, industrial, and governmental 
  6.35  purposes; and township government most efficiently provides 
  6.36  governmental services in areas used or developed for 
  7.1   agricultural, open space, and rural residential purposes; (3) 
  7.2   the public interest requires that municipalities be formed when 
  7.3   there exists or will likely exist the necessary resources to 
  7.4   provide for their economical and efficient operation; (4) 
  7.5   annexation to existing municipalities of unincorporated areas 
  7.6   unable to supply municipal services should be facilitated; and, 
  7.7   (5) (4) the consolidation of municipalities should be encouraged.
  7.8   The Minnesota municipal board is empowered to promote and 
  7.9   regulate development of municipalities to provide for the 
  7.10  extension of municipal government to areas which are developed 
  7.11  or are in the process of being developed for intensive use for 
  7.12  residential, commercial, industrial, institutional, and 
  7.13  governmental purposes or are needed for such purposes; and to 
  7.14  protect the stability of unincorporated areas which are used or 
  7.15  developed for agricultural, open space, and rural residential 
  7.16  purposes and are not presently needed for more intensive uses; 
  7.17  and to protect the integrity of land use planning in 
  7.18  municipalities and unincorporated areas so that the public 
  7.19  interest in efficient local government will be properly 
  7.20  recognized and served. 
  7.21     Sec. 7.  Minnesota Statutes 1998, section 414.01, 
  7.22  subdivision 2, is amended to read: 
  7.23     Subd. 2.  [MEMBERS, QUALIFICATIONS, MEETINGS.] The board 
  7.24  shall be composed of three members appointed by the governor, at 
  7.25  least one of whom shall be learned in the law, and at least one 
  7.26  of whom shall be a resident from outside of the metropolitan 
  7.27  area as defined in section 473.121, subdivision 2.  The board 
  7.28  shall select from its members a chair who shall have the powers 
  7.29  and duties prescribed by the general law applicable to the heads 
  7.30  of departments and agencies of the state.  All those appointed 
  7.31  must be residents of the state for at least five years before 
  7.32  the appointment.  Each appointed member shall serve for six 
  7.33  years.  The board shall meet once each month at a regular time 
  7.34  to be established by the chair.  The removal of members and 
  7.35  filling of vacancies for members other than county commissioner 
  7.36  members on the board are as provided in section 15.0575.  
  8.1      In proceedings before the board for the incorporation of a 
  8.2   statutory city, or consolidation of two or more municipalities, 
  8.3   or annexation of unincorporated land to a municipality, two 
  8.4   county commissioners of the board of the county in which all or 
  8.5   a majority of the affected land is located shall serve on the 
  8.6   board during such time as the board shall have under 
  8.7   consideration said matter.  The executive director of the board 
  8.8   shall upon initiation of a proceeding for such incorporation, or 
  8.9   consolidation, or annexation notify the county auditor of the 
  8.10  county in which the majority of the affected property is 
  8.11  situated of the need for the appointment of the two county 
  8.12  commissioners to the board.  At the next succeeding meeting of 
  8.13  the county board the commissioners shall designate the two 
  8.14  appointed and shall thereupon immediately notify the Minnesota 
  8.15  municipal board executive director of their action.  The county 
  8.16  commissioners shall represent districts which do not contain any 
  8.17  of the affected territory.  If commissioners from the unaffected 
  8.18  districts are unavailable, commissioners from the affected 
  8.19  district may serve. 
  8.20     Sec. 8.  Minnesota Statutes 1998, section 414.01, 
  8.21  subdivision 14, is amended to read: 
  8.22     Subd. 14.  [POPULATION OF CHANGED TERRITORY.] When a board 
  8.23  order or approval letter enlarges or diminishes the area of an 
  8.24  existing municipality or town, the board shall communicate its 
  8.25  order or approval letter to the municipality and the state 
  8.26  demographer.  The municipality shall prepare an estimate of 
  8.27  population and of the number of households for the annexed or 
  8.28  detached area of the municipality or town.  The estimate shall 
  8.29  be certified by the state demographer.  The estimate must 
  8.30  estimate the population as of the effective date of the board 
  8.31  order or approval letter and must be so dated.  When a new 
  8.32  municipality is created by an order of the board, the 
  8.33  municipality shall request a separation census from the United 
  8.34  States bureau of the census and bear any costs incurred.  
  8.35     Sec. 9.  Minnesota Statutes 1998, section 414.067, 
  8.36  subdivision 2, is amended to read: 
  9.1      Subd. 2.  [ENTIRE TOWNSHIP OR MUNICIPALITY.] When an entire 
  9.2   township is annexed by an existing municipality, or an entire 
  9.3   township is incorporated into a new municipality, or a 
  9.4   municipality is consolidated into a new municipality, all money, 
  9.5   claims, or properties, including real estate owned, held, or 
  9.6   possessed by the annexed, incorporated township or municipality, 
  9.7   and any proceeds or taxes levied by such town or municipality, 
  9.8   collected or uncollected, shall become and be the property of 
  9.9   the new or annexing municipality with full power and authority 
  9.10  to use and dispose of the same for public purposes as the 
  9.11  council or new annexing municipality may deem best, subject to 
  9.12  the rights of creditors.  Any taxes levied to pay bonded 
  9.13  indebtedness of a town or former municipality annexed to an 
  9.14  existing municipality or incorporated or consolidated into a new 
  9.15  municipality shall be borne only by that taxable property within 
  9.16  the boundaries of the former town or municipality, provided, 
  9.17  however, the units of government concerned may by resolution of 
  9.18  their governing bodies agree that taxes levied to pay the 
  9.19  indebtedness must be levied upon all taxable property within the 
  9.20  boundaries of the new municipality.  Notwithstanding that the 
  9.21  bonded indebtedness may be payable from taxes levied on only a 
  9.22  portion of the taxable property in the new or surviving 
  9.23  municipality, the full faith and credit of the new or surviving 
  9.24  municipality must secure any outstanding bonded indebtedness to 
  9.25  which the full faith and credit of the annexed or consolidated 
  9.26  township or municipality was pledged.  If any general funds of 
  9.27  the new or surviving municipality are used to pay debt service 
  9.28  on the bonded indebtedness, the general funds must be 
  9.29  reimbursed, with or without interest, from taxes levied on 
  9.30  taxable property in the former township or municipality. 
  9.31     Sec. 10.  Minnesota Statutes 1998, section 462.3535, 
  9.32  subdivision 5, is amended to read: 
  9.33     Subd. 5.  [URBAN GROWTH AREA BOUNDARY ADJUSTMENT PROCESS.] 
  9.34  (a) After an urban growth area has been identified in a county 
  9.35  or city plan, a city shall negotiate, as part of the 
  9.36  comprehensive planning process and in coordination with the 
 10.1   county, an orderly annexation agreement with the townships 
 10.2   containing the affected unincorporated areas located within the 
 10.3   identified urban growth area.  The agreement shall contain a 
 10.4   boundary adjustment staging plan that establishes a sequencing 
 10.5   plan over the subsequent 20-year period for the orderly growth 
 10.6   of the city based on its reasonably anticipated development 
 10.7   pattern and ability to extend municipal services into designated 
 10.8   unincorporated areas located within the identified urban growth 
 10.9   area.  The city shall include the staging plan agreed upon in 
 10.10  the orderly annexation agreement in its comprehensive plan.  
 10.11  Upon agreement by the city and town, prior adopted orderly 
 10.12  annexation agreements may be included as part of the boundary 
 10.13  adjustment plan and comprehensive plan without regard to whether 
 10.14  the prior adopted agreement is consistent with this section.  
 10.15  When either the city or town requests that an existing orderly 
 10.16  annexation agreement affecting unincorporated areas located 
 10.17  within an identified or proposed urban growth area be 
 10.18  renegotiated, the renegotiated plan shall be consistent with 
 10.19  this section. 
 10.20     (b) After a city's community-based comprehensive plan is 
 10.21  approved under this section, the orderly annexation agreement 
 10.22  shall be filed with the municipal board or its successor 
 10.23  agency.  Thereafter, the city may orderly annex the part or 
 10.24  parts of the designated unincorporated area according to the 
 10.25  sequencing plan and conditions contained in the negotiated 
 10.26  orderly annexation agreement by submitting a resolution to the 
 10.27  municipal board or its successor agency.  The resolution shall 
 10.28  city must notify interested persons and agencies as required in 
 10.29  section 414A.04, and specify the legal description of the area 
 10.30  designated pursuant to the staging plan contained in the 
 10.31  agreement, a map showing the new boundary and its relation to 
 10.32  the existing city boundary, a description of and schedule for 
 10.33  extending municipal services to the area, and a determination 
 10.34  that all applicable conditions in the agreement have been 
 10.35  satisfied.  Within 30 days of receipt of the resolution, the 
 10.36  municipal board or its successor shall review the resolution and 
 11.1   if it finds that the terms and conditions of the orderly 
 11.2   annexation agreement have been met, shall order the annexation.  
 11.3   The boundary adjustment shall become is effective upon issuance 
 11.4   of an order by the municipal board or its successor.  The 
 11.5   municipal board or its successor shall cause copies of the 
 11.6   boundary adjustment order to be mailed to the secretary of 
 11.7   state, department of revenue, state demographer, and department 
 11.8   of transportation.  No further proceedings under chapter 414 or 
 11.9   572A shall be required to accomplish the boundary adjustment.  
 11.10  This section provides the sole method for annexing 
 11.11  unincorporated land within an urban growth area, unless the 
 11.12  parties agree otherwise the municipality providing the required 
 11.13  notices. 
 11.14     (c) If a community-based comprehensive plan is updated, the 
 11.15  parties shall renegotiate the orderly annexation agreement as 
 11.16  needed to incorporate the adjustments and shall refile the 
 11.17  agreement with the municipal board or its successor. 
 11.18     Sec. 11.  Minnesota Statutes 1998, section 465.87, 
 11.19  subdivision 1a, is amended to read: 
 11.20     Subd. 1a.  [ADDITIONAL ELIGIBILITY.] A local government 
 11.21  unit is eligible to apply for aid under this section if it has 
 11.22  combined with another unit of government in accordance with any 
 11.23  process within chapter 414 or 414A that results in the 
 11.24  elimination of at least one local government unit and a copy of 
 11.25  the municipal board's order or orders, or the joint annexation 
 11.26  resolution, combining the units of government is forwarded to 
 11.27  the board.  If the municipal board issues an order, or two or 
 11.28  more orders within 30 days, for the a joint annexation 
 11.29  resolution provides for annexation of the area of an entire 
 11.30  township by two or more cities contiguous to the township, the 
 11.31  cities subject to the board's order participating in the joint 
 11.32  annexation resolution are eligible to receive pro rata shares, 
 11.33  on the basis of the population of the area of the township that 
 11.34  was annexed by each contiguous city, of the total amount of 
 11.35  cooperation and combination aid all participating units of 
 11.36  government would be eligible to receive under subdivision 2.  If 
 12.1   two units of government cooperate in the orderly annexation of 
 12.2   the entire area of a third unit of government which has a 
 12.3   population of at least 8,000 people, the two units of government 
 12.4   are each eligible for the amount of aid specified in subdivision 
 12.5   2.  
 12.6      Sec. 12.  Minnesota Statutes 1998, section 473F.13, 
 12.7   subdivision 1, is amended to read: 
 12.8      Subdivision 1.  [CERTIFICATION OF CHANGE IN STATUS.] If a 
 12.9   municipality is dissolved, is consolidated with all or part of 
 12.10  another municipality, annexes territory, has a portion of its 
 12.11  territory detached from it, or is newly incorporated, the 
 12.12  secretary of state shall immediately certify that fact to the 
 12.13  commissioner of revenue.  The secretary of state shall also 
 12.14  certify to the commissioner of revenue the current population of 
 12.15  the new, enlarged, or successor municipality, if determined by 
 12.16  the Minnesota municipal board incident to consolidation, 
 12.17  annexation, or incorporation proceedings.  The population so 
 12.18  certified shall govern for purposes of sections 473F.01 to 
 12.19  473F.13 until the metropolitan council files its first 
 12.20  population estimate as of a later date with the commissioner of 
 12.21  revenue.  If an For annexation of unincorporated land occurs 
 12.22  without proceedings before the Minnesota municipal board, the 
 12.23  population of the annexing municipality as previously determined 
 12.24  shall continue to govern for purposes of sections 473F.01 to 
 12.25  473F.13 until the metropolitan council files its first 
 12.26  population estimate as of a later date with the commissioner of 
 12.27  revenue. 
 12.28     Sec. 13.  Minnesota Statutes 1998, section 473H.14, is 
 12.29  amended to read: 
 12.30     473H.14 [ANNEXATION PROCEEDINGS.] 
 12.31     Agricultural preserve land within a township shall not be 
 12.32  annexed to a municipality pursuant to chapter 414, without a 
 12.33  specific finding by the Minnesota municipal board that either 
 12.34  414A unless:  (a) the expiration period as provided for in 
 12.35  section 473H.08 has begun; (b) the township due to size, tax 
 12.36  base, population or other relevant factors would not be able to 
 13.1   provide normal governmental functions and services; or (c) the 
 13.2   agricultural preserve would be completely surrounded by lands 
 13.3   within a municipality. 
 13.4      This section shall not apply to annexation agreements 
 13.5   approved by the Minnesota municipal board or entered into under 
 13.6   chapter 414A prior to creation of the preserve.  
 13.7      Sec. 14.  Minnesota Statutes 1998, section 572A.02, 
 13.8   subdivision 5, is amended to read: 
 13.9      Subd. 5.  [DECISION FACTORS.] In comprehensive planning 
 13.10  disputes, the arbitration panel shall consider the goals stated 
 13.11  in section 4A.08 and the following factors in making a 
 13.12  decision.  In all other disputes brought under this section, the 
 13.13  arbitration panel shall consider the following factors in making 
 13.14  a decision: 
 13.15     (1) present population and number of households, past 
 13.16  population, and projected population growth of the subject area 
 13.17  and adjacent units of local government; 
 13.18     (2) quantity of land within the subject area and adjacent 
 13.19  units of local government; and natural terrain including 
 13.20  recognizable physical features, general topography, major 
 13.21  watersheds, soil conditions, and such natural features as 
 13.22  rivers, lakes, and major bluffs; 
 13.23     (3) degree of contiguity of the boundaries between the 
 13.24  municipality and the subject area; 
 13.25     (4) present pattern of physical development, planning, and 
 13.26  intended land uses in the subject area and the municipality 
 13.27  including residential, industrial, commercial, agricultural, and 
 13.28  institutional land uses and the impact of the proposed action on 
 13.29  those land uses; 
 13.30     (5) the present transportation network and potential 
 13.31  transportation issues, including proposed highway development; 
 13.32     (6) land use controls and planning presently being utilized 
 13.33  in the municipality and the subject area, including 
 13.34  comprehensive plans for development in the area and plans and 
 13.35  policies of the metropolitan council, and whether there are 
 13.36  inconsistencies between proposed development and existing land 
 14.1   use controls and the reasons therefore; 
 14.2      (7) existing levels of governmental services being provided 
 14.3   in the municipality and the subject area, including water and 
 14.4   sewer service, fire rating and protection, law enforcement, 
 14.5   street improvements and maintenance, administrative services, 
 14.6   and recreational facilities and the impact of the proposed 
 14.7   action on the delivery of said services; 
 14.8      (8) existing or potential environmental problems and 
 14.9   whether the proposed action is likely to improve or resolve 
 14.10  these problems; 
 14.11     (9) plans and programs by the municipality for providing 
 14.12  needed governmental services to the subject area; 
 14.13     (10) an analysis of the fiscal impact on the municipality, 
 14.14  the subject area, and adjacent units of local government, 
 14.15  including net tax capacity and the present bonded indebtedness, 
 14.16  and the local tax rates of the county, school district, and 
 14.17  township; 
 14.18     (11) relationship and effect of the proposed action on 
 14.19  affected and adjacent school districts and communities; 
 14.20     (12) adequacy of town government to deliver services to the 
 14.21  subject area; and 
 14.22     (13) analysis of whether necessary governmental services 
 14.23  can best be provided through the proposed action or another type 
 14.24  of boundary adjustment; and 
 14.25     (14) if only a part of a township is annexed, the ability 
 14.26  of the remainder of the township to continue or the feasibility 
 14.27  of it being incorporated separately or being annexed to another 
 14.28  municipality. 
 14.29  Any party to the proceeding may present evidence and testimony 
 14.30  on any of the above factors at the hearing on the matter. 
 14.31     Sec. 15.  [REPEALER.] 
 14.32     Minnesota Statutes 1998, sections 414.031, subdivisions 1, 
 14.33  3, 4, 4a, and 6; 414.0325; 414.033, subdivisions 1, 2, 2b, 3, 5, 
 14.34  6, 7, 10, 11, 12, and 13; 414.0335; 414.035; 414.036; 414.061, 
 14.35  subdivisions 1, 2, 3, 4, and 5; and 572A.03, subdivisions 4, 5, 
 14.36  and 8, are repealed.