1.2relating to local government; authorizing transfer of development credits banks
1.3for local governments; amending Minnesota Statutes 2008, sections 394.25,
1.4subdivision 2; 462.357, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2008, section 394.25, subdivision 2, is amended to read:
1.7    Subd. 2. Districts set by zoning ordinances. (a) Zoning ordinances establishing
1.8districts within which the use of land or the use of water or the surface of water pursuant
1.9to section 86B.205 for agriculture, forestry, recreation, residence, industry, trade,
1.10soil conservation, water supply conservation, surface water drainage and removal,
1.11conservation of shorelands, as defined in sections 103F.201 to 103F.221, and additional
1.12uses of land and of the surface of water pursuant to section 86B.205, may be by official
1.13controls encouraged, regulated, or prohibited and for such purpose the board may divide
1.14the county into districts of such number, shape, and area as may be deemed best suited
1.15to carry out the comprehensive plan. Official controls may also be applied to wetlands
1.16preservation, open space, parks, sewage disposal, protection of groundwater, protection of
1.17floodplains as defined in section 103F.111, protection of wild, scenic, or recreational rivers
1.18as defined in sections 103F.311 and 103F.315, protection of slope, soils, unconsolidated
1.19materials or bedrock from potentially damaging development, preservation of forests,
1.20woodlands and essential wildlife habitat, reclamation of nonmetallic mining lands;
1.21protection and encouragement of access to direct sunlight for solar energy systems as
1.22defined in section 216C.06, subdivision 17; and the preservation of agricultural lands.
1.23(b) Official controls may include provisions for purchase of development rights
1.24by the board in the form of conservation easements under chapter 84C in areas where
2.1preservation is considered by the board to be desirable, and the transfer of development
2.2rights from those areas to areas the board considers more desirable for development.
2.3The county board may also provide by ordinance for a transfer of development credits
2.4bank with the power to purchase, hold and sell development credits, or designate as the
2.5county's transfer of development credits bank a nongovernmental entity, including a
2.6not-for-profit organization organized under section 501(c)(3) of the Internal Revenue
2.7Code, or a private commercial enterprise, including but not limited to a credit union or a
2.8privately held commercial bank.

2.9    Sec. 2. Minnesota Statutes 2008, section 462.357, subdivision 1, is amended to read:
2.10    Subdivision 1. Authority for zoning. For the purpose of promoting the public
2.11health, safety, morals, and general welfare, a municipality may by ordinance regulate
2.12on the earth's surface, in the air space above the surface, and in subsurface areas, the
2.13location, height, width, bulk, type of foundation, number of stories, size of buildings
2.14and other structures, the percentage of lot which may be occupied, the size of yards and
2.15other open spaces, the density and distribution of population, the uses of buildings and
2.16structures for trade, industry, residence, recreation, public activities, or other purposes,
2.17and the uses of land for trade, industry, residence, recreation, agriculture, forestry, soil
2.18conservation, water supply conservation, conservation of shorelands, as defined in
2.19sections 103F.201 to 103F.221, access to direct sunlight for solar energy systems as
2.20defined in section 216C.06, flood control or other purposes, and may establish standards
2.21and procedures regulating such uses. To accomplish these purposes, official controls
2.22may include provision for purchase of development rights by the governing body in the
2.23form of conservation easements under chapter 84C in areas where the governing body
2.24considers preservation desirable and the transfer of development rights from those areas to
2.25areas the governing body considers more appropriate for development. The municipality
2.26may also provide by ordinance for a transfer of development credits bank with the
2.27power to purchase, hold and sell development credits, or designate as the municipality's
2.28transfer of development credits bank a nongovernmental entity, including a not-for-profit
2.29organization organized under section 501(c)(3) of the Internal Revenue Code, or a private
2.30commercial enterprise, including but not limited to a credit union or a privately held
2.31commercial bank. No regulation may prohibit earth sheltered construction as defined in
2.32section 216C.06, subdivision 14, relocated residential buildings, or manufactured homes
2.33built in conformance with sections 327.31 to 327.35 that comply with all other zoning
2.34ordinances promulgated pursuant to this section. The regulations may divide the surface,
2.35above surface, and subsurface areas of the municipality into districts or zones of suitable
3.1numbers, shape, and area. The regulations shall be uniform for each class or kind of
3.2buildings, structures, or land and for each class or kind of use throughout such district,
3.3but the regulations in one district may differ from those in other districts. The ordinance
3.4embodying these regulations shall be known as the zoning ordinance and shall consist of
3.5text and maps. A city may by ordinance extend the application of its zoning regulations to
3.6unincorporated territory located within two miles of its limits in any direction, but not
3.7in a county or town which has adopted zoning regulations; provided that where two or
3.8more noncontiguous municipalities have boundaries less than four miles apart, each is
3.9authorized to control the zoning of land on its side of a line equidistant between the two
3.10noncontiguous municipalities unless a town or county in the affected area has adopted
3.11zoning regulations. Any city may thereafter enforce such regulations in the area to the
3.12same extent as if such property were situated within its corporate limits, until the county
3.13or town board adopts a comprehensive zoning regulation which includes the area.