SF 2037

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to eminent domain; requiring exchange of 
  1.3             certain appraisals between commissioner of 
  1.4             transportation and owner; allowing owner's appraiser 
  1.5             to seek payment directly from commissioner; 
  1.6             classifying appraisal data; requiring commissioner to 
  1.7             prepare and distribute summary of eminent domain 
  1.8             process for transportation projects; requiring 
  1.9             demonstration of public purpose to justify exercise of 
  1.10            eminent domain in certain cases; amending Minnesota 
  1.11            Statutes 2002, section 117.075; Minnesota Statutes 
  1.12            2003 Supplement, sections 13.44, subdivision 3; 
  1.13            117.036, subdivisions 2, 3, by adding a subdivision. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.16  13.44, subdivision 3, is amended to read: 
  1.17     Subd. 3.  [REAL PROPERTY; APPRAISAL DATA.] (a)  
  1.18  [CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or 
  1.19  appraised values of individual parcels of real property which 
  1.20  are made by personnel of the state, its agencies and 
  1.21  departments, or a political subdivision or by independent 
  1.22  appraisers acting for the state, its agencies and departments, 
  1.23  or a political subdivision for the purpose of selling or 
  1.24  acquiring land through purchase or condemnation are classified 
  1.25  as confidential data on individuals or protected nonpublic data. 
  1.26     (b)  [PRIVATE OR NONPUBLIC DATA.] Appraised values of 
  1.27  individual parcels of real property that are made by appraisers 
  1.28  working for fee owners or contract purchasers who have received 
  1.29  an offer to purchase their property from a government entity are 
  2.1   private data on individuals or nonpublic data. 
  2.2      (c)  [PUBLIC DATA.] The data made confidential or protected 
  2.3   nonpublic by the provisions of paragraph (a) shall become public 
  2.4   upon the occurrence of any of the following:  
  2.5      (1) the negotiating parties exchange appraisals; 
  2.6      (2) the data are submitted to a court appointed 
  2.7   condemnation commissioner; 
  2.8      (3) (2) the data are presented in court in condemnation 
  2.9   proceedings; or 
  2.10     (4) (3) the negotiating parties enter into an agreement for 
  2.11  the purchase and sale of the property; or 
  2.12     (5) the data are submitted to the owner under section 
  2.13  117.036. 
  2.14     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.15  117.036, subdivision 2, is amended to read: 
  2.16     Subd. 2.  [APPRAISAL.] (a) Before commencing an eminent 
  2.17  domain proceeding under this chapter, the acquiring authority 
  2.18  must obtain at least one appraisal for the property proposed to 
  2.19  be acquired.  In making the appraisal, the appraiser must confer 
  2.20  with one or more of the fee owners or contract purchasers of the 
  2.21  property, if reasonably possible.  At least 20 days before 
  2.22  presenting a petition under section 117.055 Notwithstanding 
  2.23  section 13.44, the acquiring authority must provide the fee 
  2.24  owner or contract purchaser with a copy of the appraisal and 
  2.25  inform the owner of the owner's that person of the right to 
  2.26  obtain an appraisal under this section.  Upon request, a copy of 
  2.27  the appraisal must be provided to the fee owner or contract 
  2.28  purchaser within five days.  The owner or contract purchaser 
  2.29  must provide the commissioner with appraisals of the property 
  2.30  for which the owner has been reimbursed with public funds. 
  2.31     (b) The fee owner or contract purchaser may obtain an 
  2.32  appraisal by a qualified appraiser of the property proposed to 
  2.33  be acquired.  The fee owner or contract purchaser is entitled to 
  2.34  reimbursement for the reasonable costs of the appraisal from the 
  2.35  acquiring authority up to a maximum of $1,500 within 30 days 
  2.36  after the owner if that person submits to the acquiring 
  3.1   authority the information necessary for reimbursement, provided 
  3.2   that the owner does so within 60 days after the owner receives 
  3.3   the appraisal from the authority under paragraph (a) and a copy 
  3.4   of the appraisal within 90 days after receiving the acquiring 
  3.5   authority's appraisal.  The acquiring authority must pay the 
  3.6   reimbursement to the fee owner or contract purchaser within 30 
  3.7   days after receiving a copy of the appraisal and the 
  3.8   reimbursement information.  Upon agreement between the fee owner 
  3.9   or contract purchaser and the acquiring authority, the acquiring 
  3.10  authority may pay the reimbursement, of up to $1,500, directly 
  3.11  to the appraiser.  
  3.12     (c) An appraisal may not be used or considered in a 
  3.13  commissioner's hearing unless it is disclosed to all parties at 
  3.14  least three business days before the hearing.  
  3.15     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  3.16  117.036, subdivision 3, is amended to read: 
  3.17     Subd. 3.  [NEGOTIATION.] In addition to the appraisal 
  3.18  requirements under subdivision 2, before commencing an eminent 
  3.19  domain proceeding, the acquiring authority must make a good 
  3.20  faith attempt to negotiate personally with the owner of the 
  3.21  property in order to acquire the property by direct purchase 
  3.22  instead of the use of eminent domain proceedings.  In making 
  3.23  this negotiation, the acquiring authority must consider the 
  3.24  appraisals in its possession, including any appraisal obtained 
  3.25  and furnished by the owner, and other information that may be 
  3.26  relevant to a determination of damages under this chapter. 
  3.27     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.28  117.036, is amended by adding a subdivision to read: 
  3.29     Subd. 4.  [INFORMATION TO BE PREPARED.] The commissioner of 
  3.30  transportation, in consultation with the attorney general and 
  3.31  one or more professional associations of real estate appraisers, 
  3.32  shall prepare a publication of not more than two pages that 
  3.33  summarizes the eminent domain process for transportation 
  3.34  projects, including the reasons for condemnation, the procedures 
  3.35  followed by condemners, how property owners and citizens may 
  3.36  influence the condemnation process, and the rights of property 
  4.1   owners and citizens affected by condemnation.  The commissioner 
  4.2   shall make this publication available to all persons on whose 
  4.3   property the commissioner has made an appraisal or to whom the 
  4.4   commissioner has made an offer to purchase.  The commissioner 
  4.5   may make the publication available to other acquiring 
  4.6   authorities and may charge a price to recover the commissioner's 
  4.7   costs. 
  4.8      Sec. 5.  Minnesota Statutes 2002, section 117.075, is 
  4.9   amended to read: 
  4.10     117.075 [COURT TO APPOINT COMMISSIONERS.] 
  4.11     (a) Upon proof being filed of the service of such notice, 
  4.12  the court, at the time and place therein fixed or to which the 
  4.13  hearing may be adjourned, shall hear all competent evidence 
  4.14  offered for or against the granting of the petition, regulating 
  4.15  the order of proof as it may deem best.  If the proposed taking 
  4.16  shall appear to be necessary and such as is authorized by law, 
  4.17  the court by an order shall appoint three disinterested 
  4.18  commissioners, and at least two alternates, to ascertain and 
  4.19  report the amount of damages that will be sustained by the 
  4.20  several owners on account of such taking. 
  4.21     (b) If an interest in property is sold, leased, 
  4.22  transferred, or otherwise conveyed to a person or entity without 
  4.23  the power of eminent domain, the court shall not authorize the 
  4.24  taking unless the petitioner proves by a preponderance of the 
  4.25  evidence that the taking is reasonably necessary, the taking is 
  4.26  authorized by law, and the taking is for a public purpose.  At 
  4.27  the owner's request, acquisition of property in excess of that 
  4.28  necessary for a project is not considered an interest in 
  4.29  property that is sold, licensed, leased, or otherwise conveyed 
  4.30  to a person or entity without the power of eminent domain.  The 
  4.31  temporary lease of property proposed to be acquired by eminent 
  4.32  domain or threat of eminent domain is not considered an interest 
  4.33  in property that is sold, licensed, leased, or otherwise 
  4.34  conveyed to a person or entity without the power of eminent 
  4.35  domain.  This paragraph does not apply to an acquisition of 
  4.36  property for transportation purposes under section 117.036.  
  5.1      (c) Before appointing a commissioner, the court shall 
  5.2   inquire whether each prospective commissioner has any 
  5.3   relationship, business or otherwise, to any of the parties in 
  5.4   the proceeding, or any interest in the proceeding which may 
  5.5   constitute a conflict of interest, or which may create the 
  5.6   appearance of impropriety should that person be appointed.  
  5.7   Responses to this inquiry must be either written or on the 
  5.8   record and made available by the court to any party in the 
  5.9   proceeding before and after appointment.  No person who might 
  5.10  have difficulty in rendering an unbiased decision may be 
  5.11  appointed to serve.  The court, in its discretion, may appoint 
  5.12  one registered, practicing attorney to the commission who is 
  5.13  knowledgeable in eminent domain matters.  All other 
  5.14  commissioners appointed must be persons actively engaged in the 
  5.15  occupation of real estate sales or real estate appraising or 
  5.16  persons knowledgeable in real estate values.  The order shall 
  5.17  fix the time and place of the first meeting of the three 
  5.18  commissioners and prescribe their compensation.  At the first 
  5.19  meeting at the office of the court administrator of district 
  5.20  court the appointees must be sworn by the court administrator or 
  5.21  an authorized deputy and shall take and sign the following oath 
  5.22  before assuming their duties as commissioners: 
  5.23                       (TITLE OF PROCEEDING) 
  5.24     .................................  does swear under penalty 
  5.25     of perjury as follows: 
  5.26     I will faithfully and justly perform to the best of my 
  5.27     ability, all the duties of the office and trust which I now 
  5.28     assume as commissioner in the above entitled proceeding.  I 
  5.29     further swear that, except as disclosed in writing or on 
  5.30     the record, I have no interest in any of the lands in the 
  5.31     above proceeding or any present or past relationship, 
  5.32     business or personal, with any of the parties to the above 
  5.33     proceeding or any other actual or potential conflict of 
  5.34     interest, and that I will render fair and impartial 
  5.35     decisions, so help me God. 
  5.36     The order may, in the discretion of the court, limit the 
  6.1   title or easement to be acquired by the petitioner by defining 
  6.2   the rights and privileges which the owner of any of the lands 
  6.3   may exercise therein in subordination to the public uses to 
  6.4   which it is appropriated.  In case any commissioner fails to act 
  6.5   or fails to meet the qualifications required by this section, 
  6.6   the court without further notice may appoint another in that 
  6.7   commissioner's place.  
  6.8      The court administrator of court in each county shall post 
  6.9   in the courthouse in a prominent place a notice that a qualified 
  6.10  person may apply to have the person's name placed upon a list of 
  6.11  potential commission appointees for eminent domain proceedings. 
  6.12  The notice must contain the language of the oath which the 
  6.13  commissioners are required to take upon appointment and shall 
  6.14  list the other qualifications set forth in this section.  The 
  6.15  court shall give due consideration to the names appearing on the 
  6.16  list, but is not bound to make appointments from the list.