HF 2236

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to education, giving the board of trustees of 
  1.3             the Minnesota state colleges and universities certain 
  1.4             authority with respect to property transactions, 
  1.5             construction, repairs, and improvements; appropriating 
  1.6             money; amending Minnesota Statutes 1998, sections 
  1.7             136F.36, subdivisions 1, 3, and by adding 
  1.8             subdivisions; 136F.60; and 136F.64, subdivision 1. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 136F.36, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [AUTHORITY TO ACQUIRE, DEVELOP, AND SELL 
  1.13  REAL PROPERTY FOR INSTRUCTIONAL PURPOSES.] For the purpose of 
  1.14  instructional construction by technical colleges, the board may 
  1.15  build, sell, or transfer personal property and may purchase or 
  1.16  otherwise acquire real property that it does not intend to use 
  1.17  as a permanent educational site.  The board may, upon on the 
  1.18  terms and conditions it sets, develop and, sell, transfer, or 
  1.19  otherwise dispose of real property acquired under this section.  
  1.20  A sale shall must be for at fair market value.  In this 
  1.21  section, a sale price resulting from public bidding, public 
  1.22  auction, or negotiations between unrelated parties acting in 
  1.23  their self-interest, is fair market value.  Where real property 
  1.24  acquired under this section cannot be sold for fair market 
  1.25  value, the board may lease the real property under the terms and 
  1.26  conditions it sets.  The board may also contract for the use of 
  1.27  real property it does not own.  Where the board makes 
  2.1   improvements to real property it does not own, the 
  2.2   landowner shall may compensate the board for the fair market 
  2.4   value, nominal consideration, or without consideration as may be 
  2.5   agreed on between the parties, of the board's contribution to 
  2.6   the improvements.  No other authorizing legislation or 
  2.7   legislative approval is required for an acquisition, 
  2.8   improvement, or sale under this section.  Proceeds from the 
  2.9   sale, lease, or improvement of real property under this section 
  2.10  are appropriated to the board. 
  2.11     Sec. 2.  Minnesota Statutes 1998, section 136F.36, 
  2.12  subdivision 3, is amended to read: 
  2.13     Subd. 3.  [WARRANTIES.] The board may, in its discretion, 
  2.14  offer the warranties contained in chapter 327A, less extensive 
  2.15  warranties, or no warranties. 
  2.16     Sec. 3.  Minnesota Statutes 1998, section 136F.36, is 
  2.17  amended by adding a subdivision to read: 
  2.18     Subd. 4.  [STORAGE AND RETENTION OF DOCUMENTS.] 
  2.19  Notwithstanding section 16A.58, the board may store and retain 
  2.20  at the respective technical college original documents from 
  2.21  carpentry program transactions, including but not limited to 
  2.22  deeds, abstracts of title, and certificates of title. 
  2.23     Sec. 4.  Minnesota Statutes 1998, section 136F.36, is 
  2.24  amended by adding a subdivision to read: 
  2.25     Subd. 5.  [STATE EMPLOYEE PURCHASES.] Notwithstanding 
  2.26  section 15.054, personal or real property resulting from 
  2.27  instructional construction by technical colleges may be sold to 
  2.28  a state employee, after reasonable public notice, by public 
  2.29  auction, by sealed bid, or by listing with a licensed real 
  2.30  estate broker if the state employee has offered the highest 
  2.31  price and was not involved in the development of the property or 
  2.32  the award of the sale. 
  2.33     Sec. 5.  Minnesota Statutes 1998, section 136F.60, is 
  2.34  amended to read: 
  2.35     136F.60 [COLLEGE AND UNIVERSITY SITES; ACQUISITION.] 
  2.36     Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
  2.37  UNIVERSITIES ACQUISITION OF REAL ESTATE.] The board may purchase 
  3.1   acquire property adjacent to or in the vicinity of the campuses 
  3.2   as necessary for the development of a state college or 
  3.3   university.  Before taking final action, the board shall consult 
  3.4   with the chairs of the senate finance committee and the house 
  3.5   ways and means committee about the proposed action.  The board 
  3.6   shall explain the need to acquire property, specify the property 
  3.7   to be acquired, and indicate the source and amount of money 
  3.8   needed for the acquisition.  The amount needed may be spent from 
  3.9   sums previously appropriated for purposes of the state colleges 
  3.10  and universities, including, but not limited to, general fund 
  3.11  appropriations for instructional or noninstructional 
  3.12  expenditures, general fund appropriations carried forward, or 
  3.13  state college and university activity fund appropriations.  The 
  3.14  board may pay relocation costs, at its discretion, when 
  3.15  acquiring property.  
  3.16     Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
  3.17  appropriated to the board to acquire lands or sites for public 
  3.18  buildings or real estate, the acquisition may be by gift, 
  3.19  purchase, or condemnation proceedings.  Condemnation proceedings 
  3.20  must be under chapter 117. 
  3.21     Subd. 3.  [DISPOSAL OF SURPLUS REAL ESTATE.] (a) If the 
  3.22  board determines that college or university-owned real estate 
  3.23  under the board's control is no longer needed, the board may 
  3.24  sell, assign, transfer, or otherwise dispose of all or part of 
  3.25  the state's interest in the surplus real estate, as provided in 
  3.26  this subdivision, the compensation for which must be determined 
  3.27  by the board.  Before taking final action, the board shall 
  3.28  consult with the chairs of the senate finance committee and the 
  3.29  house ways and means committee about the proposed action. 
  3.30     (b) The sale or other disposal of any surplus real estate 
  3.31  under this subdivision must be made subject to any covenants, 
  3.32  terms, and conditions required by or acceptable to the board.  
  3.33  The real estate determined as surplus by the board must be 
  3.34  offered for public sale by the board.  Before any public sale of 
  3.35  surplus college or university-owned land is made, the board 
  3.36  shall publish a notice of the sale at least once in each week 
  4.1   for four successive weeks in the State Register and also in a 
  4.2   newspaper of general distribution in the city or county in which 
  4.3   the real property to be sold is located.  The notice shall 
  4.4   specify the time and place of the sale, a general description of 
  4.5   the lots or tracts to be offered, and a general statement of the 
  4.6   terms of sale.  The sale may occur by public auction, sealed 
  4.7   bid, listing with a real estate broker, or other means selected 
  4.8   by the board.  The real property must be sold for not less than 
  4.9   its appraised value except as provided in this section.  Parcels 
  4.10  remaining unsold after the offering may be sold to anyone 
  4.11  agreeing to pay their appraised value or for less than the 
  4.12  appraised value if the board determines that accepting less than 
  4.13  the appraised value will serve a public purpose.  The sale shall 
  4.14  continue until all parcels are sold or until the board orders a 
  4.15  reappraisal or withdraws the remaining parcels from sale.  The 
  4.16  sale may occur by public auction, sealed bid, listing with a 
  4.17  licensed real estate broker, or other means selected by the 
  4.18  board. 
  4.19     (c) The cost of any survey or appraisal as provided in this 
  4.20  subdivision may be added to and made a part of the appraised 
  4.21  value of the lands to be sold, whether to any political 
  4.22  subdivision of the state or to a private purchaser as provided 
  4.23  in this subdivision. 
  4.24     (d) The conveyance of any college or university-owned 
  4.25  interest in surplus real estate under paragraph (a) must be by 
  4.26  legal documents that are in a form approved by the attorney 
  4.27  general.  The legal documents must reserve all minerals and 
  4.28  mineral rights to the state, and may contain other reservations, 
  4.29  easements, restrictions, covenants, and other provisions 
  4.30  required by or acceptable to the board. 
  4.31     (e) The sale or other disposal of any surplus real estate 
  4.32  under this subdivision is subject to section 16A.695, and any 
  4.33  related orders issued by the commissioner of finance, to the 
  4.34  extent applicable.  Money received by the state under this 
  4.35  section is appropriated to the board unless otherwise provided 
  4.36  by law. 
  5.1      (f) The authority of the board to sell or otherwise dispose 
  5.2   of surplus real estate under this subdivision is in addition to 
  5.3   the authority in section 15.16, relating to transfer of lands 
  5.4   between departments. 
  5.5      (g) Proceeds from the sale or other disposition of property 
  5.6   authorized under this subdivision is appropriated to the board 
  5.7   unless otherwise provided by law. 
  5.8      Subd. 4.  [TRANSFER OF STATE COLLEGE OR UNIVERSITY-OWNED 
  5.9   IMPROVEMENTS.] The board may sell, transfer, or otherwise 
  5.10  dispose of an improvement located on state-owned lands, the 
  5.11  compensation for which must be determined by the board.  The 
  5.12  sale, transfer, or disposition must be accomplished by a bill of 
  5.13  sale, describing the improvement transferred and the terms and 
  5.14  conditions of the sale or transfer.  Proceeds from the sale, 
  5.15  transfer, or disposition are appropriated to the board unless 
  5.16  otherwise provided by law. 
  5.17     Subd. 5.  [LEASING OF STATE COLLEGE OR UNIVERSITY REAL 
  5.18  PROPERTY.] (a) The board may grant a leasehold interest in real 
  5.19  estate, offered at public or private sale, as provided in this 
  5.20  subdivision. 
  5.21     (b) The term of the leasehold interest in the real estate 
  5.22  must not exceed 30 years.  In connection with granting the 
  5.23  leasehold interest, the board may sell or otherwise dispose of 
  5.24  any buildings, improvements, fixtures, and personal property 
  5.25  located on the real estate.  Before taking final action, the 
  5.26  board shall consult with the chairs of the senate finance 
  5.27  committee and the house ways and means committee about the 
  5.28  proposed sale.  Proceeds from the lease under this subdivision 
  5.29  are appropriated to the board unless otherwise provided by law. 
  5.30     (c) An agreement or instrument granting a leasehold 
  5.31  interest in real estate for a term of more than five years, or 
  5.32  conveying any buildings or other property in connection with a 
  5.33  leasehold interest, under paragraph (b), must be in a form 
  5.34  approved by the attorney general.  The agreement or instrument 
  5.35  may contain such covenants, terms, and conditions, as may be 
  5.36  required by or acceptable to the board. 
  6.1      (d) The granting of any leasehold interest under this 
  6.2   subdivision is subject to section 16A.695, and any related 
  6.3   orders issued by the commissioner of finance, to the extent 
  6.4   applicable. 
  6.5      Subd. 6.  [EASEMENTS TO CROSS COLLEGE AND UNIVERSITY 
  6.6   CAMPUSES.] (a) The board may grant a permanent or temporary 
  6.7   easement or permit over, under, or across any land owned by the 
  6.8   state and under the jurisdiction of the board for the purposes 
  6.9   of constructing roads, streets, telephone, telegraph, and 
  6.10  electric power lines, cables or conduits, or for any other 
  6.11  reasonable purposes as determined by the board, underground or 
  6.12  otherwise, or mains or pipelines for gas, liquids, or solids in 
  6.13  suspension. 
  6.14     (b) An easement or permit is revocable by written notice 
  6.15  given by the board if at any time its continuance will conflict 
  6.16  with a public use of the land over, under, or upon which it is 
  6.17  granted, or for any other reason.  The notice must be in writing 
  6.18  and is effective 90 days after the notice is sent by certified 
  6.19  mail to the last known address of the record holder of the 
  6.20  easement.  If the address of the holder of the easement or 
  6.21  permit is not known, it expires 90 days after the notice is 
  6.22  recorded in the office of the county recorded of the county in 
  6.23  which the land is located.  Upon revocation of an easement, the 
  6.24  board may allow a reasonable time to vacate the premises 
  6.25  affected. 
  6.26     (c) State land subject to an easement or permit granted by 
  6.27  the board remains subject to sale or lease, and the sale or 
  6.28  lease does not revoke the permit or easement granted. 
  6.29     (d) An application for easement or permit under this 
  6.30  subdivision must be in quadruplicate and must include:  a legal 
  6.31  description of the land affected, a map showing the area 
  6.32  affected by the easement or permit, and a detailed design of any 
  6.33  structures to be placed on the land.  The board may require that 
  6.34  the application be in another form and include other 
  6.35  descriptions, maps, or designs.  The board may at any time order 
  6.36  changes or modifications respecting construction or maintenance 
  7.1   of structures or other conditions of the easement that the board 
  7.2   finds necessary to protect the public health and safety. 
  7.3      (e) The easement or permit must be in a form prescribed by 
  7.4   the attorney general and must describe the location of the 
  7.5   easement.  The easement or permit continues until revoked by the 
  7.6   board, subject to change as provided in this section. 
  7.7      (f) The board may prescribe consideration and conditions 
  7.8   for granting an easement or permit.  Money received by the state 
  7.9   under this subdivision must be credited to the fund to which 
  7.10  income or proceeds of sale from the land would be credited, if 
  7.11  provision for the sale is made in law.  Otherwise, it is 
  7.12  appropriated to the board. 
  7.13     Sec. 6.  Minnesota Statutes 1998, section 136F.64, 
  7.14  subdivision 1, is amended to read: 
  7.15     Subdivision 1.  [GENERAL AUTHORITY; CONSTRUCTION; 
  7.16  IMPROVEMENTS.] (a) Specific legislative authority is not 
  7.17  required for repairs or minor capital projects financed with 
  7.18  operating appropriation or institutional receipts that: 
  7.19     (1) are undertaken for asset preservation or code 
  7.20  compliance purposes; or 
  7.21     (2) do not materially increase the net square footage of 
  7.22  the institution; and 
  7.23     (3) do not materially increase the costs of instructional 
  7.24  programs. 
  7.25     (b) Minor capital projects authorized under paragraph (a) 
  7.26  must not exceed a project cost of $250,000.  Unless the board of 
  7.27  trustees determines that an emergency exists, the chair of the 
  7.28  finance committee of the senate, and the chairs of the ways and 
  7.29  means committee and the capital investments committee of the 
  7.30  house must be notified in writing before the board incurs any 
  7.31  contractual obligations for all projects undertaken under this 
  7.32  section that cost more than $100,000. 
  7.33     (c) The board shall supervise and control the preparation 
  7.34  of plans and specifications for the construction, alteration, 
  7.35  repair, or enlargement of state college and university 
  7.36  buildings, structures, and improvements for which appropriations 
  8.1   are made to the board.  The board shall advertise for bids and 
  8.2   award contracts in connection with the improvements, supervise 
  8.3   and inspect the work, approve necessary changes in the plans and 
  8.4   specifications, approve estimates for payment, and accept the 
  8.5   improvements when completed according to the plans and 
  8.6   specifications.