Minnesota Legislative Session Overview

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1 American Planning Association Minnesota Chapter Making Great Communities Happen Legislative Committee Minnesota Legislative Session Overview

2 Review Of The 87 th Session APA MN Legislative Committee 2011/2012 Bill Tracking Review of the 87 th Minnesota Legislative Session, Issues and Future Challenges

3 APA MN Legislative Committee Presenters and Assignments Tom Jensen, AICP Legislative Coordinator Andrew Mack, AICP Co-Chair (Legislation relating to Planning and Zoning Administration, Land Use, and Signs) Bob Patton, AICP Co-Chair (Agriculture, Environmental Review and Permitting Legislation) Suzanne Rhees, AICP Metro District Director and Legislative Committee Member (Parks and Recreation, Energy, and Sustainability Legislation)

4 APA MN Legislative Committee Members and Their Legislative Topic Assignments Andy Gitzlaff, Metro District Director & Legislative Committee Member (Transportation and related Legislation) Jon Sevald, Legislative Committee Member (Legislation relating to Planning and Zoning Administration, Land Use, and Signs) Matt Brown, Legislative Committee Member (Economic Development Legislation) Paul Mogush, Legislative Committee Member (Transportation Legislation)

5 Bill Introductions and Minnesota Statues The Legislative Committee focused on key topics, chapters of Minnesota Statutes, and bills of interest that could be enacted as special laws. Statutes Laws Acts Bills Laws of a general and permanent nature having statewide application are coded in Minnesota Statutes. Laws that are coded can be found by using the index to the Minnesota Statutes. Laws refer to all laws passed by the Legislature, which are referred to as the Session Laws of the State of Minnesota. Not all laws become statutes. Session Laws become the only official record for temporary and special laws. Act is the official name for a bill that has been enrolled for presentation to the Governor. Each act is assigned a chapter number and is published in the Session Laws. A bill is a proposal for a new law, a change in current law, repeal of a current law, or for a constitutional amendment. A bill contains a title, enacting clause and body (text).

6 Bill Introductions and Minnesota Statues Bills tracked in several areas MN Statutes, Chapter MN Statutes, Chapter MN Statutes, Chapter County Planning, Development, Zoning Municipal Housing, Redevelopment, Planning, Zoning Municipal Boundary Adjustments 469, 428A 103 (and 103 A-I) 114 through 116 Economic Development and Special Service Districts; Housing Improvement Areas Water Policies, Planning and Protection of Water Resources Environmental Protection and Environmental Protection Funds

7 Bill Introductions and Minnesota Statues MN Statutes, Chapter MN Statutes, Chapter MN Statutes, Chapter through 174A 117 Department of Transportation Transportation Eminent Domain 17 40A and and 84A-D Department of Agriculture Agricultural Land Preservation and Agricultural Property Tax J Department of Natural Resources and Statutes Relating To Conservation Metropolitan Government Department of Health Employment and Economic Development

8 Bill Introductions and Minnesota Statues MN Statutes, Chapter MN Statutes, Chapter MN Statutes, Chapter 446A 216, 216 A-H, 237, and through 515B Public Facilities Authority Utilities and Telecommunications Property Interests and Liens 138, A Historical Societies; Sites; Archaeology. Tax Credits, Historic Structure Rehabilitation Administrative Procedure Housing Finance

9 The Session At A Glance 87th Minnesota Legislature Activities By Year Year Session House Bill Introductions Senate Bill Introductions Laws Passed Full Vetoes st Special Session th Legislature st Special Session th Legislature ,291 1, ,761 1,

10 The Session At A Glance APA MN Legislative Tracking By Year Year Session Number of House Bills Tracked Number of Senate Bills Tracked st Special Session th Legislature st Special Session th Legislature 3 (100%) 489 (38%) 27 (100%) 672 (38%) 3 (100%) 427 (37%) 21 (100%) 599 (41%)

11 Bill Introductions and Minnesota Statues Questions Which chapters of Minnesota Statues or topics are of interest to planners when changes are proposed, considered, or enacted by the Minnesota Legislature? Are we missing anything we should consider covering? (For instance, MN Statutes, Chapter 12A-Natural Disasters and State Assistance)

12 The Minnesota 2011 Legislative Session Recap: 2011 Legislation of Interest To Planners Variances-Chapter 15 (HF 52) Environmental review and permitting processes- Chapter 4 (HF 1) Green Acres and Rural Preserves program tax provisions-chapter 13 (HF12) Concurrent detachment and annexation- Chapter 115 (HF 753)

13 2011 Special Session Highlights July 19-20, 2011: Twelve bills processed in one day with the agreement of the Governor Omnibus transportation policy bill did not become law during the 2011 Regular Session but omnibus transportation finance bill passed during Special Session Vetoed Omnibus tax policy bill during Regular Session was passed in Special Session and included allowing TIF special pooling allocation to be used for market-rate vacant, foreclosed properties. o Extended TIF 2010 jobs bill for one year but did not remedy unresolved issues from the City of East Bethel v. Anoka County Housing & Redevelopment Authority ruling

14 The Minnesota 2012 Legislative Session 2012 Legislative Backdrop More experienced majorities and freshmen in House and Senate and some key experienced legislators leave Senate majority leadership changes Committee majority leadership shuffle

15 The Minnesota 2012 Legislative Session 2012 Legislative Environment Continuation of streamlining and reducing state and local regulatory structures, outcomes, and measurements of outcomes Vikings intensify stadium push; TCF Bank Stadium needs legislative approval to sell liquor for Vikings temporary home Majority continues commitment to reducing short- and longterm state and local spending, borrowing, and tax rates Majority maintains its commitment to use C/I property and business tax incentives as a jobs agenda

16 The Minnesota 2012 Legislative Session Highlights Of 2012 Legislation Municipal Detachment Hearing Environmental Review and Permitting Processes (Part 2) Omnibus Environment Policy Bill State Agency Rules Review and Reporting Community Energy Technical Assistance and Outreach Washington County and Anoka County HRA Operational Extension

17 The Minnesota 2012 Legislative Session Municipal Detachment-Chapter 135 (HF1738) Introduced in the 2011 Regular Session. The final bill, among other things: Requires the petitioners or the municipality to state the reasons for seeking the detachment and to summarize efforts taken to resolve issues that form the basis for the detachment request. Provides that if the town that is a party to the detachment expresses a position other than neutral and it is opposed to the position of the municipality, the town becomes a party to the hearing. Requires that no hearing be held and the petition is granted if everyone (municipality, all property owners and the town by supporting or being neutral) supports the petition.

18 The Minnesota 2012 Legislative Session Environmental Review and Permitting Processes (Part 2)-Chapter 150 (SF 1567) Permitting Simplifies the process for Commissioners of DNR and PCA to notify a project proposer of any deficiencies in a permit application; starts the 150-day clock upon initial submittal (no determination of completeness first) May allow expedited approval of a permit submitted to the PCA by a permit professional on behalf of applicant. Construction or modification to a facility is allowed to begin prior to the issuance of a construction permit from the PCA, unless prohibited by federal law. Modifies the requirement for water conservation requirements in local water supply plans and broadens the type of demand reduction measures that may be in local water supply plans.

19 The Minnesota 2012 Legislative Session Environmental Review and Permitting Processes (Part 2)-Chapter 150 (SF 1567) Permitting (continued) Provides that state disposal system (SDS) permits for feedlots are for a term of ten years Eliminates the need for an air emission permit for electrical generation equipment associated with an on-farm manure digester outside of the metropolitan area or city of the first or second class. Minnesota Business First Stop. DEED to coordinate the implementation and administration of state permits, to provide specific assistance to applicants for state permits and other project approvals. DEED may assess a project proposer for the cost of coordination.

20 The Minnesota 2012 Legislative Session Environmental Review and Permitting Processes (Part 2)-Chapter 150 (SF 1567) Environmental Review Definition of cellulosic biofuel is modified to clarify that it includes harvested wood. Mandatory EIS is not required for cellulosic biofuel and biobutanol facilities producing less than 125 million gallons of fuel annually. EQB, PCA, DNR, and MnDOT to submit every five years to the governor and the legislature a list of categories of mandatory EAWs and EISs. Provides for an (optional) pilot alternative process for environmental review of certain projects.

21 The Minnesota 2012 Legislative Session Omnibus Environment Policy Bill-Chapter 272 (HF 2164) Modifies replacement requirements for de minimus wetland impacts and wetland banking Authorizes BWSR to allow a comprehensive plan, local water management plan, or watershed management plan to serve as a substitute for one another or be replaced by a comprehensive watershed management plan. Removes a motorized use prohibition for local governments establishing trails that receive state grant-in-aid funding. Local governments are now permitted to designate motorized and non-motorized trail uses. Changes state law for the management, inspection, and regulation of aquatic invasive species (AIS).

22 The Minnesota 2012 Legislative Session Community Energy Technical Assistance and Outreach Grant-Chapter 237 (HF 2731) $500,000 granted from State conservation improvement funds to clean energy resource teams (CERTS). Funds provide for community energy technical assistance and outreach on renewable energy and energy efficiency. Grant recipient must submit reports on activities to energy policy and finance committee, October 2013

23 The Minnesota 2012 Legislative Session Washington County And Anoka County HRA Operational Extension-Chapter 199 (HF 2132) Gives Washington County Housing and Redevelopment Authority (HRA) and Anoka County HRA jurisdiction to operate in all areas of their individual counties, including municipalities, regardless of whether or not a municipality has its own HRA. If the county HRA has a project located within a the boundaries of a city or town within county borders, the county HRA requires prior approval by the municipality.

24 The Extra Days Of The 2012 Session Legislature stayed in session until May 10 (instead of planned date of April 30) 18 bills were passed between May 1 & May 10; 6 of the 18 bills were vetoed Legislation to create the Minnesota Sports Facilities Authority to finance and build a new 1.5 million square foot stadium to lease to the Minnesota Vikings passed and signed

25 The Extra Days Of The 2012 Session Omnibus Transportation Policy Bill-Chapter 287 (HF 2685) Requires preparation of freight rail economic development study as an amendment to the statewide freight and passenger rail plan. Authorization of a Minnesota Safe Routes to School program funded with GO bonding---but no funds were passed for this use in the 2012 bonding bill. MnDOT, DNR, BWSR & PCA to study streamlining of water-related permitting for transportation through creation of a single point of issuance system. Provisions for the use of buses on highway shoulders expanded to include local road agencies.

26 The Extra Days Of The 2012 Session Economic Development-Chapter 288 (HF 1721) Establishes the office of small business advocate in the Business Assistance Center Authorizes certain types of demolition loans to be made from the Greater Minnesota Redevelopment Account up to 100 percent of the estimated land acquisition and demolition costs for eligible projects Authorizes the city of Albert Lea to establish an industrial sewer charge rebate program.

27 The Extra Days Of The 2012 Session Construction Code Fund-Chapter 289 (SF 1983) The collection amount of building permit fees is amended. The amendment prohibits the transfer of the fees to the general fund something that has been done and proposed for other dedicated funds for instance, environmental, taxes, Metro Council Livable Communities, and use of certain DEED funds. Transfer of dedicated funds to offset under-collection of other taxes and fees is part of the larger issue facing planners, developers, and public officials

28 The Extra Days Of The 2012 Session Sports Facilities Authority and NFL Stadium Authorization-Chapter 299 (HF 2958) The Minnesota Sports Facilities Authority is the responsible governmental unit (RGU) for an environmental impact statement (EIS) for the stadium, if an EIS is necessary. The EIS shall not be required to consider alternative stadium sites. The EIS must be determined to be adequate prior to starting the foundation of the stadium. Stadium and stadium infrastructure may be started and all preliminary and final government decisions and actions may be made and taken including, but not limited to, acquiring land; obtaining financing; granting permits or other land use approvals; entering into grant, lease, or use agreements; or preparing the site or related stadium infrastructure prior to a determination of the adequacy of the EIS.

29 The Extra Days Of The 2012 Session Sports Facilities Authority and NFL Stadium Authorization-Chapter 299 (HF 2958) The design, development, and construction of the stadium shall be a collaborative process between the authority and the NFL team. The authority and the NFL team shall establish a process to reach consensus on key elements of the stadium program and design, development, and construction. To the extent practicable, stadium should be environmentally and energy efficient, LEED or equivalent eligible, and architecturally significant.

30 The Extra Days Of The 2012 Session Additional Legislation: Chapter 293 (HF 1752: Omnibus bonding bill Chapter 290 (SF 1143): Omnibus data practices provisions bill. Chapter 292 (HF 2967): Annual forecast bill, aligning appropriation amounts with forecast spending levels. The bill includes $235,000 in matching funds for FEMA projects of the legislature.

31 Minnesota 87th Legislative Session A Few Of The Bills That Did Not Become Law: Interim Ordinances, Moratoria, and Development Contracts (HF389 Died on the floor of the Senate) Vacation rental residential property authorized as a permitted use rather than as a CUP/IUP (SF1190/HF1523) Standing For Takings Claims Against Local Governments By Private Waste Haulers (SF1190/HF1523) Freeze On Rules and Rulemaking/Legislative Approval of Rules/Sunset of Rules (Chapter HF203, Vetoed, HF2336/ SF1927, HF1831/SF2167, HF2211/SF1631, HF1241/SF575, HF2/SF146, HF2169/SF1922) Metropolitan Council Land Use Planning Provisions Made Advisory (SF1667/HF2578) Changing the selection of Metropolitan Council members (Chapter 158 SF 2014 Vetoed)

32 Minnesota 87th Legislative Session A Few Of The Bills That Did Not Become Law: 2012 Omnibus tax bills- Chapter 285 (HF 2337) and Chapter 296 (HF 247): passed by the Legislature and vetoed by the Governor. Both bills included freezes in the state general property tax levy for business and vacation properties, additional taxing and spending restrictions and reductions, and local government aid (LGA) freezes. The bills also provided for an extension of the use of economic development districts for job creation that was passed in 2010 and for TIF provisions for specific local governments. Removal of municipal authority to prohibit private well drilling within its boundaries (HF 135/SF 64) Restricting local governments organized solid waste collection (HF 2084/SF 1664). The original language created an inverse condemnation claim but was later amended to allow for standing to recover for organized collection as a contract right.

33 The Minnesota 2012 Legislative Session A Few OF The Bills That Did Not Become Law: A bill requiring municipalities to publish a 60-day notice for any proposed zoning ordinance or amendment for any large project. Defined as a project estimated to cost ten times the average assessed value of properties within 350 feet of the large project subject to the zoning ordinance or zoning amendment. (HF 2326/SF 2100) Limiting the use of eminent domain outside of a municipality s corporate boundaries. (HF 2119) Allowing for discharging portions of easements obtained by eminent domain to be returned to the owner in cases where a portion of the land is not used for the purpose it was acquired. Would amend MS by allowing the landowner to apply to the district court for the partial discharge. Was a statutory fix in response to a plaintiff s unsuccessful claim in Larson v. State of Minnesota and County of Douglas (HF 578/SF 229)

34 Minnesota st Special Session Flood and Windstorm Damage Recovery HF 1 appropriates approximately $180.2 million for relief from the Minnesota floods that began June 14, 2012, and the July 2, 2012 windstorm in north central Minnesota. This is offset by approximately $12.7 million in appropriation transfers and reductions, for a net cost of $167.5 million. Of the total amount, $74.5 million is from the general fund, $56.7 million is from the proceeds of bonds that will be paid from the general fund, $35 million is from the proceeds of bonds that will be paid from the trunk highway fund, and $14 million is from the trunk highway fund. Many of the appropriations track the requirements of MS chapter 12A, which provides a framework for disaster assistance, including waivers of certain statutes. A new Minnesota Investment Fund (MIF) disaster contingency account is created in the special revenue fund. Loan repayments to a local unit of government must be sent to the commissioner for deposit into the account to be appropriated for future disasters.

35 Minnesota st Special Session Flood and Windstorm Damage Recovery Amount Purpose To Source /Comment $1,500,000 For Reinvest in Minnesota (RIM) perpetual conservation easements in the disaster area $11 million Erosion, sediment, and water quality control cost share grants for local governments May issue alternative standards for wetland replacement statutes in the disaster area to address emergency situations BWSR BWSR BWSR from bond proceeds General fund

36 Minnesota st Special Session Flood and Windstorm Damage Recovery Amount Purpose To Source /Comment $ million Match Federal Emergency Management Agency (FEMA) funds for the Presidential Declaration of a Major Disaster FEMA-4069-DR $15 million Minnesota Investment Fund (MIF) grants to local units of government for locally administered grants or loan programs Commissioner of Public Safety DEED Federal government pays 75 percent of federally approved assistance, with state and local government paying the remaining 25 percent (all state in this case) Commissioner of DEED to report to the legislature on the criteria and requirements to be used.

37 Minnesota st Special Session Flood and Windstorm Damage Recovery Amount Purpose To Source /Comment $6,000,000 Public infrastructure replacement, repair Public Facilities Authority (DEED) From bond proceeds $ million $ million for the Economic Development and Housing Challenge Program, $250,000 for capacity building grants, and $250,000 for family homeless prevention and assistance Housing Finance Agency From general fund / Max. $30,000 per housing structure

38 Minnesota st Special Session Flood and Windstorm Damage Recovery (continued) Amount Purpose To Source/ Comment $79 million Transportation infrastructure replacement, repair $600,000 Disaster assistance to ag producers Dept. of Ag. Penalty-free late property tax filings Commercial - indust. properties in disaster counties

39 Looking Ahead To 2013 and Beyond The Legislative Environment Over 20 percent of the incumbents in both the Minnesota House and Senate have announced they will not return to their seats. Some incumbent House members are running for Senate seats. Will the composition or majorities in the Legislature change? The existing budget surplus could revert to a significant shortfall in 2013, especially if the economy slows or the Federal Budget Control Act measures take place on January 1, The emphasis on streamlining and realigning government agencies, services, LGA, and tax policies will likely continue.

40 Looking Ahead To 2013 and Beyond Transportation Issues Congress passed a new 2 year surface transportation reauthorization bill at the end of June that: Consolidates and changes programs, funding levels, and Federal guidance, influencing how programs will be delivered at the state level; focuses funding toward the National Highway System (NHS) Relies on increased use of public private partnerships (P3) and adds more funding under the Transportation Infrastructure Finance and Innovation Act (TFIA), which reduces the apportionment amount (contract authority) to the States established through the core formula highway programs. Requires U.S. DOT to establish performance measures. State DOTs will develop performance targets in consultation with metropolitan planning organizations (MPOs) and others. Keeps the Recreational Trails program available to the states but funds the program at the 2009 level.

41 Looking Ahead To 2013 and Beyond The Transportation Bill... Requires States to make cost-effective and efficient investments that show progress toward the performance targets. States must also must provide reports that allow the public to meaningfully assess the performance of the State. Includes provisions for the development of a National Freight Strategic Plan, which encourages state freight plans and advisory committees, and provides incentives for states that fund projects to improve freight movement. Realigns Transportation Enhancements, Scenic Byways, Safe Routes to School programs under Moving Ahead for Progress in the 21st Century s (MAP-21) new Transportation Alternatives program (Scenic Byways Center in Duluth closes). Ends on September 30, Another reauthorization bill is just around the corner!

42 Looking Ahead To 2013 and Beyond Conservation Easements The Office of the Legislative Auditor will release a report next year that is expected to answer the following types of questions: How is land selected for landowners holding conservation easements, and how is the value determined? What benefits accrue to easements, and how do they balance against the public s interest? How well do nonprofit organizations and state agencies monitor and enforce easement requirements?

43 Looking Ahead To 2013 and Beyond Local Government Aid, Delivery of Services, and Property Tax Changes The Governor, the Legislature, and the League of Minnesota Cities are studying these types of issues for possible legislative action. How will economic conditions influence these discussions? Will emergency storm and flood damage relief declarations increase if extreme weather conditions accelerate and if so, how will these events shape the future of the delivery of services and land use practices?

44 Looking Ahead To 2013 and Beyond Will These Bills That Did Not Become Law Return In 2013? Interim Ordinances, Moratoria, and Development Contracts: (HF389 Died on the floor of the Senate) Vacation rental residential property authorized as a permitted use rather than as a CUP/IUP: (SF1190/HF1523) Standing For Takings Claims Against Local Governments By Private Waste Haulers: (SF1190/HF1523) Freeze On Rules and Rulemaking/Legislative Approval of Rules/Sunset of Rules: (Chapter HF203, Vetoed, HF2336/ SF1927, HF1831/SF2167, HF2211/SF1631, HF1241/SF575, HF2/SF146, HF2169/SF1922) Metropolitan Council Land Use Planning Provisions Made Advisory: (SF1667/HF2578)

45 Minnesota 87th Legislative Session Will These Bills That Did Not Become Law Return In 2013? Removal of municipal authority to prohibit private well drilling within its boundaries-(hf 135/SF 64) Restricting local governments organized solid waste collection-(hf 2084/SF 1664): The original language created an inverse condemnation claim but was later amended to allow for standing to recover for organized collection as a contract right.

46 Dealing With the New Normal

47 Looking Ahead To 2013 and Beyond Navigating The New Normal By Using Collaboration, Agreements, Redesign, Performance Measurement, and Best Practices Intergovernmental Collaboration (Cooperation and Intergovernmental Agreements) Office of the Legislative Auditor 2012 Report - Consolidation of Local Government Local Service Redesign Report - The League of Minnesota Cities, the Association of Minnesota Counties, and Minnesota School Boards Association has issued Focus on Outcomes: Redesigning Minnesota s Local Government Services. Office of the State Auditor Performance Measurement Program Office of the State Auditor "Best Practice Reviews" Of Local Government Services The Council on Local Results and Innovation s 10 performance measures for cities. Local Government Innovation and Redesign Guide

48 Looking Ahead To 2013 and Beyond What are the prospects for modernizing Minnesota s planning and zoning laws? Minnesota s planning laws date from the 1950s and 1960s (and are based on models dating from the 1920s), when most development occurred in cities, and when townships and unincorporated parts of counties were largely agricultural, rural or undeveloped. APA-MN 2010 brochure

49 Planning Law Reform Why should this matter? Few incentives for collaboration across boundaries Differing levels of capacity to conduct planning Inefficient land use patterns and costly mistakes result from uncoordinated planning The public expects more openness and transparency

50 Planning Law Reform APA-MN s Goals: 1. Coordination, cooperation, consistency and efficiency 2. Wise public investments, community vitality and natural resource sustainability 3. Accountability, transparency and openness in government

51 Previous Efforts at Reform 1981 Growth Management Study 1987 unified land planning act (never adopted) Community Based Planning Act (CBPA) of 1997 Key sections repealed effective in 2001, including the 11 goals, the funding, and the process for state review of community-based plans Optional guidance and other remnants remain in statute

52 Recent Changes 2008 President Theodore Roosevelt Memorial Bill to Preserve Agricultural, Forest, Wildlife, and Open Space Land Numerous protected uses- manufactured homes, manufactured home parks, statelicensed day care facilities and state-licensed residential facilities Nonconforming uses Variance legislation, 2011

53 Comparison of Chapters 394 and 462 Observations Lack of standards for contents of a comprehensive plan Many differences, but few that make a difference Recent efforts to adopt identical or parallel language (variances, feedlots, etc.) Choice: clean-up and streamlining vs. more extensive reform? Or status quo?

54 Advantages Pros and cons of consolidation Opportunity for APA-MN to build partnerships and take a lead role on these issues Minor improvements might pave the way for major ones Opportunity for differing constituencies to work together, build trust, develop champions

55 Pros and cons of consolidation Disadvantages and Dangers Pandora s Box theory - Threat of polarization, losing existing protections Not widespread agreement on dimensions of problem or need for effort Desirability of wasting effort and political capital on small changes

56 Michigan s successful consolidation, Ingredients Three separate statutes for zoning; three for planning (township, city/village, county) Widespread agreement on need for change APA chapter was prepared with reports and analysis Legislative champion; multi-stakeholder working group

57 Looking Ahead To 2013 and Beyond What are the prospects for modernizing Minnesota s planning and zoning laws? What do you think?

58 See You At the State Capitol In 2013! Thank You! APA Minnesota Legislative Committee

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