| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to local government; modifying orderly annexation election proceedings |
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| 3 | 3 | | 1.3 and detachment provisions; amending Minnesota Statutes 2024, sections 414.031, |
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| 4 | 4 | | 1.4 by adding a subdivision; 414.0325, subdivisions 1, 1b, 6; 414.033, subdivision 2, |
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| 5 | 5 | | 1.5 by adding a subdivision; 414.036; 414.038; 414.06, subdivisions 1, 2, 3, 7; 572A.03, |
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| 6 | 6 | | 1.6 subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 414; |
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| 7 | 7 | | 1.7 repealing Minnesota Statutes 2024, section 414.033, subdivision 3. |
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| 8 | 8 | | 1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 9 | 9 | | 1.9 Section 1. Minnesota Statutes 2024, section 414.031, is amended by adding a subdivision |
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| 10 | 10 | | 1.10to read: |
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| 11 | 11 | | 1.11 Subd. 1b.Annexation election.If the annexation is denied or defeated in a referendum |
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| 12 | 12 | | 1.12under section 414.0322, no proceeding for the annexation of substantially the same area |
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| 13 | 13 | | 1.13may be initiated within two years from the date of the chief administrative law judge's order |
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| 14 | 14 | | 1.14unless the new proceeding is initiated by a majority of the area's property owners and the |
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| 15 | 15 | | 1.15petition is supported by any abutting townships and municipalities. |
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| 16 | 16 | | 1.16 Sec. 2. [414.0322] ANNEXATION ELECTION. |
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| 17 | 17 | | 1.17 Subdivision 1.Proceedings triggering an election.Where proceedings for annexation |
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| 18 | 18 | | 1.18are initiated under section 414.031 or 414.033, subdivision 2, clause (3), or subdivision 5, |
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| 19 | 19 | | 1.19the chief administrative law judge must order an election on the question of annexation. |
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| 20 | 20 | | 1.20The chief administrative law judge must: |
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| 21 | 21 | | 1.21 (1) fix a day when an election will be held, which is not less than 30 days nor more than |
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| 22 | 22 | | 1.2290 days after the entry of the order when an election will be held; |
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| 23 | 23 | | 1Sec. 2. |
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| 24 | 24 | | REVISOR MS/KR 25-0104701/07/25 |
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| 25 | 25 | | State of Minnesota |
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| 26 | 26 | | This Document can be made available |
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| 27 | 27 | | in alternative formats upon request |
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| 28 | 28 | | HOUSE OF REPRESENTATIVES |
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| 29 | 29 | | H. F. No. 987 |
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| 30 | 30 | | NINETY-FOURTH SESSION |
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| 31 | 31 | | Authored by Gordon, Sexton, Warwas and Davis02/17/2025 |
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| 32 | 32 | | The bill was read for the first time and referred to the Committee on Elections Finance and Government Operations 2.1 (2) designate a polling place within the area that is primarily and substantially interested |
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| 33 | 33 | | 2.2in the proposed annexation, giving preference to the usual polling place or places used in |
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| 34 | 34 | | 2.3the area; |
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| 35 | 35 | | 2.4 (3) post a copy of the order affirming the petition, including the notice of election, in |
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| 36 | 36 | | 2.5three public places in the area at least 20 days before the election; |
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| 37 | 37 | | 2.6 (4) publish notice of the election for at least two successive weeks in a newspaper |
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| 38 | 38 | | 2.7qualified under chapter 331A as a legal publication in general circulation in the area; and |
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| 39 | 39 | | 2.8 (5) appoint necessary election judges from voters in the area and supervise them in their |
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| 40 | 40 | | 2.9duties. |
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| 41 | 41 | | 2.10 Subd. 2.Eligible voters.Only voters residing within the area of the proposed annexation |
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| 42 | 42 | | 2.11are entitled to vote. |
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| 43 | 43 | | 2.12 Subd. 3.Election.The election judges must conduct the election so far as practicable |
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| 44 | 44 | | 2.13in accordance with the laws regulating special elections. The ballot must bear the words |
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| 45 | 45 | | 2.14"For Annexation" and "Against Annexation." The petitioners or annexing municipality must |
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| 46 | 46 | | 2.15pay for the ballots and election supplies and the wages of election judges. Immediately upon |
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| 47 | 47 | | 2.16completion of the counting of the ballots, the election judges must make a signed and verified |
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| 48 | 48 | | 2.17certificate declaring the time and place of holding the election, that they have canvassed |
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| 49 | 49 | | 2.18the ballots cast and the number cast both for and against the proposition, and they must then |
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| 50 | 50 | | 2.19file the certificate with the chief administrative law judge. If the certificate shows the majority |
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| 51 | 51 | | 2.20of the votes cast were "For Annexation," the chief administrative law judge may issue an |
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| 52 | 52 | | 2.21order for annexation. If a majority of votes were cast against the annexation, or if there are |
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| 53 | 53 | | 2.22an equal number of votes for and against annexation, the chief administrative law judge |
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| 54 | 54 | | 2.23must not issue an order for annexation. If the annexation is denied, or if it is defeated in the |
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| 55 | 55 | | 2.24referendum, no proceeding for the annexation of substantially the same area may be initiated |
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| 56 | 56 | | 2.25within two years from the date of the chief administrative law judge's order, unless the new |
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| 57 | 57 | | 2.26proceeding is initiated by a majority of the area's property owners and the petition is |
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| 58 | 58 | | 2.27supported by any abutting townships and municipalities. The chief administrative law judge |
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| 59 | 59 | | 2.28must notify all parties of record of the election results. |
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| 60 | 60 | | 2.29 Sec. 3. Minnesota Statutes 2024, section 414.0325, subdivision 1, is amended to read: |
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| 61 | 61 | | 2.30 Subdivision 1.Initiating the proceeding.(a) One or more townships and one or more |
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| 62 | 62 | | 2.31municipalities, by joint resolution, may designate an unincorporated area as in need of |
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| 63 | 63 | | 2.32orderly annexation. One or more municipalities, by joint resolution with the county, may |
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| 64 | 64 | | 2Sec. 3. |
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| 65 | 65 | | REVISOR MS/KR 25-0104701/07/25 3.1designate an unincorporated area in which there is no organized township government as |
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| 66 | 66 | | 3.2in need of orderly annexation. |
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| 67 | 67 | | 3.3 (b) A designated area is any area which the signatories to a joint resolution for orderly |
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| 68 | 68 | | 3.4annexation have identified as being appropriate for annexation, either currently or at some |
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| 69 | 69 | | 3.5point in the future, pursuant to the negotiated terms and conditions set forth in the joint |
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| 70 | 70 | | 3.6resolution. Land described as a designated area is not, by virtue of being so described, |
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| 71 | 71 | | 3.7considered also to be annexed for purposes of this chapter. |
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| 72 | 72 | | 3.8 (c) The joint resolution will confer jurisdiction on the chief administrative law judge |
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| 73 | 73 | | 3.9over annexations in the designated area and over the various provisions in said agreement |
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| 74 | 74 | | 3.10by submission of said joint resolution to the chief administrative law judge. |
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| 75 | 75 | | 3.11 (d) The resolution shall must include a description of the designated area and the reasons |
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| 76 | 76 | | 3.12for designation. |
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| 77 | 77 | | 3.13 (e) Thereafter, an annexation of any part of the designated area may must only be initiated |
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| 78 | 78 | | 3.14by: |
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| 79 | 79 | | 3.15 (1) submitting to the chief administrative law judge a resolution of any signatory to the |
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| 80 | 80 | | 3.16joint resolution; or |
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| 81 | 81 | | 3.17 (2) the chief administrative law judge. |
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| 82 | 82 | | 3.18 (f) Whenever a state agency, other than the Pollution Control Agency, orders a |
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| 83 | 83 | | 3.19municipality to extend a municipal service to an area, the order confers jurisdiction on the |
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| 84 | 84 | | 3.20chief administrative law judge to consider designation of the area for orderly annexation. |
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| 85 | 85 | | 3.21 (g) If a joint resolution designates an area as in need of orderly annexation and states |
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| 86 | 86 | | 3.22that no alteration of its stated boundaries is appropriate, the chief administrative law judge |
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| 87 | 87 | | 3.23may review and comment, but may not alter the boundaries. |
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| 88 | 88 | | 3.24 (h) If a joint resolution designates an area as in need of orderly annexation, provides for |
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| 89 | 89 | | 3.25the conditions for its annexation, and states that no consideration by the chief administrative |
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| 90 | 90 | | 3.26law judge is necessary, the chief administrative law judge may review and comment, but |
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| 91 | 91 | | 3.27shall must, within 30 days, order the annexation in accordance with the terms of the |
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| 92 | 92 | | 3.28resolution. |
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| 93 | 93 | | 3.29 Sec. 4. Minnesota Statutes 2024, section 414.0325, subdivision 1b, is amended to read: |
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| 94 | 94 | | 3.30 Subd. 1b.Notice of intent to designate an area.(a) At least 30 days before the |
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| 95 | 95 | | 3.31municipality or township adopts an orderly annexation agreement, a notice of the intent to |
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| 96 | 96 | | 3Sec. 4. |
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| 97 | 97 | | REVISOR MS/KR 25-0104701/07/25 4.1include property in an orderly annexation area must be provided to municipalities adjacent |
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| 98 | 98 | | 4.2to the designated area. |
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| 99 | 99 | | 4.3 (b) At least ten days before the municipality or township adopts an orderly annexation |
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| 100 | 100 | | 4.4agreement, a notice of the intent to include property in an orderly annexation area must be |
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| 101 | 101 | | 4.5published in a newspaper of general circulation in both the township and municipality. |
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| 102 | 102 | | 4.6 (c) The notice notices under paragraphs (a) and (b) must clearly identify the boundaries |
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| 103 | 103 | | 4.7of the area proposed to be included in the orderly annexation agreement. The cost of |
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| 104 | 104 | | 4.8providing notice must be equally divided between the municipality and the township, unless |
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| 105 | 105 | | 4.9otherwise agreed upon by the municipality and the township. This subdivision applies only |
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| 106 | 106 | | 4.10to the initial designation to include property in an orderly annexation area subject to the |
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| 107 | 107 | | 4.11orderly annexation agreement, or any expansion of the orderly annexation area subject to |
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| 108 | 108 | | 4.12the agreement, and not to any subsequent annexation of any property from within the |
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| 109 | 109 | | 4.13designated area. This subdivision also does not apply when the orderly annexation agreement |
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| 110 | 110 | | 4.14only designates for immediate annexation property for which all of the property owners |
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| 111 | 111 | | 4.15have petitioned to be annexed. |
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| 112 | 112 | | 4.16 Sec. 5. Minnesota Statutes 2024, section 414.0325, subdivision 6, is amended to read: |
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| 113 | 113 | | 4.17 Subd. 6.Validity, effect of orderly annexation agreement.An orderly annexation |
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| 114 | 114 | | 4.18agreement is a binding contract upon all parties to the agreement and is enforceable in the |
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| 115 | 115 | | 4.19district court in the county in which the unincorporated property in question is located. For |
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| 116 | 116 | | 4.20agreements entered into on or after August 1, 2025, the parties must mutually agree to the |
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| 117 | 117 | | 4.21terms of the orderly annexation agreement, but the agreement must not run for more than |
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| 118 | 118 | | 4.22ten years. The provisions of an orderly annexation agreement are not preempted by any |
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| 119 | 119 | | 4.23provision of this chapter unless the agreement specifically provides so. If an orderly |
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| 120 | 120 | | 4.24annexation agreement provides the exclusive procedures by which the unincorporated |
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| 121 | 121 | | 4.25property identified in the agreement may be annexed to the municipality, the municipality |
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| 122 | 122 | | 4.26shall must not annex that property by any other procedure. Annexation of the designated |
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| 123 | 123 | | 4.27area by means other than those identified in the orderly annexation agreement or by a |
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| 124 | 124 | | 4.28nonparty to the orderly annexation agreement is prohibited. A petition or other filing by a |
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| 125 | 125 | | 4.29nonparty to the orderly annexation agreement must be denied as soon as the parcel to be |
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| 126 | 126 | | 4.30annexed is identified as being subject to an orderly annexation agreement. An ordinance |
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| 127 | 127 | | 4.31adopted by a nonparty municipality seeking to annex property subject to an orderly |
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| 128 | 128 | | 4.32annexation agreement is void and unenforceable. |
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| 129 | 129 | | 4Sec. 5. |
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| 130 | 130 | | REVISOR MS/KR 25-0104701/07/25 5.1 Sec. 6. Minnesota Statutes 2024, section 414.033, subdivision 2, is amended to read: |
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| 131 | 131 | | 5.2 Subd. 2.Conditions.A municipal council may by ordinance declare land annexed to |
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| 132 | 132 | | 5.3the municipality and any such land is deemed to be urban or suburban in character or about |
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| 133 | 133 | | 5.4to become so if: |
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| 134 | 134 | | 5.5 (1) the land is owned by the municipality; |
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| 135 | 135 | | 5.6 (2) the land is completely surrounded by land within the municipal limits; |
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| 136 | 136 | | 5.7 (3) (2) the land abuts the municipality and the area to be annexed is 120 acres or less, |
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| 137 | 137 | | 5.8and the area to be annexed is not presently served by public wastewater facilities or public |
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| 138 | 138 | | 5.9wastewater facilities are not otherwise available, and the municipality receives a petition |
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| 139 | 139 | | 5.10for annexation from all the property owners of the land. Except as provided for by an orderly |
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| 140 | 140 | | 5.11annexation agreement, this clause may not be used to annex any property contiguous to any |
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| 141 | 141 | | 5.12property either simultaneously proposed to be or previously annexed under this clause within |
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| 142 | 142 | | 5.13the preceding 12 months if the property is or has been owned at any point during that period |
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| 143 | 143 | | 5.14by the same owners and annexation would cumulatively exceed 120 acres; or |
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| 144 | 144 | | 5.15 (4) (3) the land has been approved after August 1, 1995, by a preliminary plat or final |
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| 145 | 145 | | 5.16plat for subdivision to provide residential lots that average 21,780 square feet or less in area |
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| 146 | 146 | | 5.17and the land is located within two miles of the municipal limits. |
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| 147 | 147 | | 5.18 Sec. 7. Minnesota Statutes 2024, section 414.033, is amended by adding a subdivision to |
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| 148 | 148 | | 5.19read: |
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| 149 | 149 | | 5.20 Subd. 2c.Annexation election.If the annexation is denied or if it is defeated in the |
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| 150 | 150 | | 5.21referendum under section 414.0322, no proceeding for the annexation of substantially the |
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| 151 | 151 | | 5.22same area may be initiated within two years from the date of the chief administrative law |
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| 152 | 152 | | 5.23judge's order unless the new proceeding is initiated by a majority of the area's property |
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| 153 | 153 | | 5.24owners and the petition is supported by any abutting townships and municipalities. |
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| 154 | 154 | | 5.25 Sec. 8. Minnesota Statutes 2024, section 414.036, is amended to read: |
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| 155 | 155 | | 5.26 414.036 CITY REIMBURSEMENT TO TOWN TO ANNEX TAXABLE |
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| 156 | 156 | | 5.27PROPERTY; CEASING REIMBURSEMENT IF PROPERTY DETACHED. |
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| 157 | 157 | | 5.28 (a) Unless otherwise agreed to by the annexing municipality and the affected town, when |
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| 158 | 158 | | 5.29an order or other approval under this chapter annexes part of a town to a municipality, the |
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| 159 | 159 | | 5.30order or other approval must provide a reimbursement from the municipality to the town |
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| 160 | 160 | | 5.31for all or part of the taxable property annexed as part of the order. The reimbursement shall |
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| 161 | 161 | | 5.32must be completed in substantially equal payments over not less than two nor more than |
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| 162 | 162 | | 5Sec. 8. |
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| 163 | 163 | | REVISOR MS/KR 25-0104701/07/25 6.1eight years from the time of annexation. The municipality must reimburse the township for |
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| 164 | 164 | | 6.2all special assessments assigned by the township to the annexed property, and any portion |
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| 165 | 165 | | 6.3of debt incurred by the town prior to the annexation and attributable to the property to be |
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| 166 | 166 | | 6.4annexed but for which no special assessments are outstanding, in substantially equal payments |
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| 167 | 167 | | 6.5over a period of not less than two or no more than eight years. |
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| 168 | 168 | | 6.6 (b) Unless otherwise agreed to by the annexing town and affected city, when an order |
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| 169 | 169 | | 6.7or other approval under this chapter detaches property that is subject to reimbursement |
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| 170 | 170 | | 6.8under paragraph (a), the reimbursement from the municipality to the town ceases on the |
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| 171 | 171 | | 6.9date of the order or approval of the detachment. |
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| 172 | 172 | | 6.10 Sec. 9. Minnesota Statutes 2024, section 414.038, is amended to read: |
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| 173 | 173 | | 6.11 414.038 EFFECT OF ANNEXATION AND DETACHMENT ON TOWNSHIP |
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| 174 | 174 | | 6.12ROADS. |
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| 175 | 175 | | 6.13 (a) Whenever a municipality annexes property abutting one side of a township road, the |
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| 176 | 176 | | 6.14segment of road abutting the annexed property must be treated as a line road and is subject |
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| 177 | 177 | | 6.15to section 164.14. Whenever a municipality annexes the property on both sides of a township |
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| 178 | 178 | | 6.16road, that portion of road abutting the annexed property ceases to be a town road and becomes |
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| 179 | 179 | | 6.17the obligation of the annexing municipality. This section does not prohibit the annexing |
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| 180 | 180 | | 6.18municipality from contracting with the township for continued maintenance of the road. |
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| 181 | 181 | | 6.19Any portion of a township road that ceases to be a township road pursuant to this section |
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| 182 | 182 | | 6.20may still be counted as a township road for the road-and-bridge account revenues for the |
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| 183 | 183 | | 6.21year in which the annexation occurs. |
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| 184 | 184 | | 6.22 (b) Whenever a town detaches property abutting one side of a township road, the segment |
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| 185 | 185 | | 6.23of road abutting the detached property must be treated as a line road and is subject to section |
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| 186 | 186 | | 6.24164.14. Whenever a town detaches the property on both sides of a township road, that |
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| 187 | 187 | | 6.25portion of road abutting the detached property ceases to be the obligation of the municipality |
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| 188 | 188 | | 6.26and becomes the obligation of the detaching town. This section does not prohibit the |
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| 189 | 189 | | 6.27detaching town from contracting with the municipality for continued maintenance of the |
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| 190 | 190 | | 6.28road. |
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| 191 | 191 | | 6.29 Sec. 10. Minnesota Statutes 2024, section 414.06, subdivision 1, is amended to read: |
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| 192 | 192 | | 6.30 Subdivision 1.Initiating the proceeding.(a) Property which is situated within a |
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| 193 | 193 | | 6.31municipality and abutting the municipal boundary, rural in character and not developed for |
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| 194 | 194 | | 6.32urban residential, commercial, or industrial purposes may be detached from the municipality |
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| 195 | 195 | | 6.33according to the following procedure. |
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| 196 | 196 | | 6Sec. 10. |
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| 197 | 197 | | REVISOR MS/KR 25-0104701/07/25 7.1 (b) The proceeding may be initiated: (1) by submitting to the chief administrative law |
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| 198 | 198 | | 7.2judge a resolution of the municipality to which the land is attached or; (2) by submitting to |
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| 199 | 199 | | 7.3the chief administrative law judge a petition of all of the property owners of the land to be |
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| 200 | 200 | | 7.4detached if the area is less than 40 acres or of 75 percent of the property owners if over 40 |
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| 201 | 201 | | 7.5acres; or (3) by submitting to the chief administrative law judge a resolution of the township |
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| 202 | 202 | | 7.6or a petition of all property owners of the land to be detached, if: (i) the land was annexed |
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| 203 | 203 | | 7.7by ordinance under section 414.033; (ii) more than five years have lapsed since the |
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| 204 | 204 | | 7.8annexation; and (iii) the land remains rural in character and not developed for urban |
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| 205 | 205 | | 7.9residential, commercial, or industrial purposes. |
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| 206 | 206 | | 7.10 (c) The petition or resolution shall must set forth the boundaries and the area of the land |
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| 207 | 207 | | 7.11to be detached, the number and character of the buildings, the resident population, and the |
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| 208 | 208 | | 7.12municipal improvements, if any, in the area, and a statement of the reasons the petitioners, |
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| 209 | 209 | | 7.13the township, or the municipality is seeking the detachment. In addition, the petitioners |
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| 210 | 210 | | 7.14shall must summarize what, if any, efforts were undertaken prior to filing the resolution or |
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| 211 | 211 | | 7.15petition to resolve the issues forming the basis for the resolution or petition. |
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| 212 | 212 | | 7.16 (d) If a petition is submitted without a resolution from the city, the petitioners shall must |
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| 213 | 213 | | 7.17also provide a copy of the petition to the city from which the land may be detached, and if |
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| 214 | 214 | | 7.18the petition includes land for which a property owner has not signed the petition, to each |
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| 215 | 215 | | 7.19property owner subject to the petition who has not signed the petition. A copy must also be |
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| 216 | 216 | | 7.20mailed or otherwise delivered to the following parties: (1) the clerk of the town to which |
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| 217 | 217 | | 7.21the property would be attached if the detachment is granted; (2) the clerk of any other |
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| 218 | 218 | | 7.22abutting town or city; and (3) the county recorder in the county in which the land is located. |
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| 219 | 219 | | 7.23 (e) If a resolution is submitted by the township, the township must also provide a copy |
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| 220 | 220 | | 7.24of the resolution to the city from which the land may be detached and each property owner |
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| 221 | 221 | | 7.25subject to the resolution. A copy must also be mailed or otherwise delivered to the following |
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| 222 | 222 | | 7.26parties: (1) the clerk of the city from which the property would be detached if the detachment |
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| 223 | 223 | | 7.27is granted; (2) the clerk of any other abutting town or city; and (3) the county recorder in |
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| 224 | 224 | | 7.28the county in which the land is located. |
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| 225 | 225 | | 7.29 Sec. 11. Minnesota Statutes 2024, section 414.06, subdivision 2, is amended to read: |
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| 226 | 226 | | 7.30 Subd. 2.Hearing, if needed.(a) If both a resolution of support from the municipality |
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| 227 | 227 | | 7.31and a petition by all the property owners are submitted, and no resolution of opposition has |
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| 228 | 228 | | 7.32been received from a town as provided in subdivision 1a, no hearing is necessary and the |
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| 229 | 229 | | 7.33chief administrative law judge shall must grant the petition. |
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| 230 | 230 | | 7Sec. 11. |
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| 231 | 231 | | REVISOR MS/KR 25-0104701/07/25 8.1 (b) If a resolution from a town is submitted, and both a resolution of support from the |
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| 232 | 232 | | 8.2municipality and a petition by all property owners are submitted, no hearing is necessary |
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| 233 | 233 | | 8.3and the administrative law judge must grant the resolution. |
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| 234 | 234 | | 8.4 (c) If both the municipality and town submit a resolution opposing the petition, a hearing |
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| 235 | 235 | | 8.5must not be held and the chief administrative law judge shall must deny the petition. |
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| 236 | 236 | | 8.6 (d) If both the municipality and all property owners subject to the detachment submit a |
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| 237 | 237 | | 8.7petition or resolution opposing the town resolution, a hearing must not be held and the chief |
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| 238 | 238 | | 8.8administrative law judge must deny the resolution. |
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| 239 | 239 | | 8.9 (e) In any other case, upon receipt of a petition or resolution, the chief administrative |
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| 240 | 240 | | 8.10law judge shall must designate a time and place for a hearing in accordance with section |
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| 241 | 241 | | 8.11414.09, except that instead of the meetings otherwise required under section 414.01, |
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| 242 | 242 | | 8.12subdivision 16, the chief administrative law judge shall must order the parties to participate |
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| 243 | 243 | | 8.13in a mediation session. The mediator must be on a list of mediators approved by the Office |
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| 244 | 244 | | 8.14of Administrative Hearings, unless the parties stipulate to a mediator not on the list. The |
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| 245 | 245 | | 8.15cost of the mediation must be apportioned as provided for in subdivision 7. |
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| 246 | 246 | | 8.16 Sec. 12. Minnesota Statutes 2024, section 414.06, subdivision 3, is amended to read: |
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| 247 | 247 | | 8.17 Subd. 3.Order.(a) Upon completion of the hearing, the chief administrative law judge |
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| 248 | 248 | | 8.18may order the detachment initiated by property owners or a township resolution on finding |
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| 249 | 249 | | 8.19that: (1) the requisite number of property owners have signed the petition if initiated by the |
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| 250 | 250 | | 8.20property owners, that or the resolution meets the requirements of subdivision 1, paragraph |
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| 251 | 251 | | 8.21(b), clause (3), if initiated by a township; (2) the property is rural in character and not |
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| 252 | 252 | | 8.22developed for urban residential, commercial or industrial purposes, that; (3) the property is |
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| 253 | 253 | | 8.23within the boundaries of the municipality and abuts a boundary, that; (4) the detachment |
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| 254 | 254 | | 8.24would not unreasonably affect the symmetry of the detaching municipality, and that; and |
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| 255 | 255 | | 8.25(5) the land is not needed for reasonably anticipated future development. |
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| 256 | 256 | | 8.26 (b) In making the findings under paragraph (a), the chief administrative law judge shall |
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| 257 | 257 | | 8.27must consider all applicable comprehensive plans, land use regulations, and land use maps |
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| 258 | 258 | | 8.28of the affected municipality, town, and county that have been adopted at the time the petition |
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| 259 | 259 | | 8.29was submitted. |
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| 260 | 260 | | 8.30 (c) The chief administrative law judge may deny the detachment on finding that the |
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| 261 | 261 | | 8.31remainder of the municipality cannot continue to carry on the functions of government |
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| 262 | 262 | | 8.32without undue hardship. The chief administrative law judge may decrease the area of property |
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| 263 | 263 | | 8.33to be detached and may include only a part of the proposed area to be detached. If the tract |
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| 264 | 264 | | 8Sec. 12. |
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| 265 | 265 | | REVISOR MS/KR 25-0104701/07/25 9.1abuts more than one town, it shall must become a part of each town, being divided by |
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| 266 | 266 | | 9.2projecting through it the boundary line between the towns. |
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| 267 | 267 | | 9.3 (d) The detached area may be relieved of the primary responsibility for existing |
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| 268 | 268 | | 9.4indebtedness of the municipality and be required to assume the indebtedness of the town |
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| 269 | 269 | | 9.5of which it becomes a part, in such proportion as the chief administrative law judge shall |
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| 270 | 270 | | 9.6deem deems just and equitable having in view the amount of taxes due and delinquent and |
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| 271 | 271 | | 9.7the indebtedness of each town and the municipality affected, if any, and for what purpose |
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| 272 | 272 | | 9.8the same was incurred, all in relation to the benefit inuring to the detached area as a result |
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| 273 | 273 | | 9.9of the indebtedness and the last net tax capacity of the taxable property in each town and |
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| 274 | 274 | | 9.10municipality. |
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| 275 | 275 | | 9.11 Sec. 13. Minnesota Statutes 2024, section 414.06, subdivision 7, is amended to read: |
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| 276 | 276 | | 9.12 Subd. 7.Costs.Notwithstanding the provisions of section 414.067, the chief |
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| 277 | 277 | | 9.13administrative law judge shall must apportion the costs of the mediation and hearing in an |
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| 278 | 278 | | 9.14equitable manner, but unless the chief administrative law judge makes specific findings as |
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| 279 | 279 | | 9.15to why a party shall be is responsible for a greater share, the petitioning landowners are |
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| 280 | 280 | | 9.16party initiating the proceeding is responsible for at least 50 percent of the total costs. |
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| 281 | 281 | | 9.17 Sec. 14. Minnesota Statutes 2024, section 572A.03, subdivision 4, is amended to read: |
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| 282 | 282 | | 9.18 Subd. 4.Annexations of unincorporated property.For annexations of unincorporated |
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| 283 | 283 | | 9.19property under section 414.031 or 414.033, subdivisions 3 and subdivision 5, the arbitration |
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| 284 | 284 | | 9.20panel may order the annexation: (1) if it finds that the subject area is now, or is about to |
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| 285 | 285 | | 9.21become, urban or suburban in character; (2) if it finds that municipal government in the |
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| 286 | 286 | | 9.22area proposed for annexation is required to protect the public health, safety, and welfare; |
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| 287 | 287 | | 9.23or (3) if it finds that the annexation would be in the best interest of the subject area. If only |
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| 288 | 288 | | 9.24a part of a township is to be annexed, the panel shall must consider whether the remainder |
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| 289 | 289 | | 9.25of the township can continue to carry on the functions of government without undue hardship. |
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| 290 | 290 | | 9.26The panel shall must deny the annexation if it finds that the increase in revenues for the |
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| 291 | 291 | | 9.27annexing municipality bears no reasonable relation to the monetary value of benefits |
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| 292 | 292 | | 9.28conferred upon the annexed area. The panel may deny the annexation: (1) if it appears that |
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| 293 | 293 | | 9.29annexation of all or a part of the property to an adjacent municipality would better serve |
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| 294 | 294 | | 9.30the interests of the residents of the property; or (2) if the remainder of the township would |
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| 295 | 295 | | 9.31suffer undue hardship. |
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| 296 | 296 | | 9.32 The panel may alter the boundaries of the area to be annexed by increasing or decreasing |
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| 297 | 297 | | 9.33the area so as to include only that property which is now or is about to become urban or |
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| 298 | 298 | | 9Sec. 14. |
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| 299 | 299 | | REVISOR MS/KR 25-0104701/07/25 10.1suburban in character or to add property of that character abutting the area proposed for |
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| 300 | 300 | | 10.2annexation in order to preserve or improve the symmetry of the area, or to exclude property |
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| 301 | 301 | | 10.3that may better be served by another unit of government. The panel may also alter the |
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| 302 | 302 | | 10.4boundaries of the proposed annexation so as to follow visible, clearly recognizable physical |
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| 303 | 303 | | 10.5features. If the panel determines that part of the area would be better served by another |
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| 304 | 304 | | 10.6municipality or township, the panel may initiate and approve annexation on its own motion |
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| 305 | 305 | | 10.7by conducting further hearings. In all cases, the arbitration panel shall must set forth the |
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| 306 | 306 | | 10.8factors that are the basis for the decision. |
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| 307 | 307 | | 10.9 Sec. 15. REPEALER. |
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| 308 | 308 | | 10.10 Minnesota Statutes 2024, section 414.033, subdivision 3, is repealed. |
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| 309 | 309 | | 10Sec. 15. |
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| 310 | 310 | | REVISOR MS/KR 25-0104701/07/25 414.033 ANNEXATION BY ORDINANCE. |
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| 311 | 311 | | Subd. 3.60 percent bordered and 40 acres or less.If the perimeter of the area to be annexed |
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| 312 | 312 | | by a municipality is 60 percent or more bordered by the municipality and if the area to be annexed |
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| 313 | 313 | | is 40 acres or less, the municipality shall serve notice of intent to annex upon the town board and |
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| 314 | 314 | | the chief administrative law judge, unless the area is appropriate for annexation by ordinance under |
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| 315 | 315 | | subdivision 2, clause (3). The town board shall have 90 days from the date of service to serve |
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| 316 | 316 | | objections with the chief administrative law judge. If no objections are forthcoming within the said |
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| 317 | 317 | | 90-day period, such land may be annexed by ordinance. If objections are filed with the chief |
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| 318 | 318 | | administrative law judge, the chief administrative law judge shall conduct hearings and issue an |
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| 319 | 319 | | order as in the case of annexations under section 414.031, subdivisions 3 and 4. |
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| 320 | 320 | | 1R |
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| 321 | 321 | | APPENDIX |
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| 322 | 322 | | Repealed Minnesota Statutes: 25-01047 |
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