HF 2625

2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; providing for acquisition 
  1.3             of property for transportation or other public 
  1.4             purposes; modifying provisions relating to section and 
  1.5             quarter-section markers; providing for conveyances of 
  1.6             certain lands; acquiring right-of-way from common 
  1.7             interest ownership communities; turning back Route No. 
  1.8             268 of the trunk highway system; requiring a report; 
  1.9             amending Minnesota Statutes 2002, sections 117.075; 
  1.10            160.15; 161.44, by adding subdivisions; 161.442; 
  1.11            515B.1-107; 515B.3-102; 515B.3-112; Minnesota Statutes 
  1.12            2003 Supplement, sections 13.44, subdivision 3; 
  1.13            117.036; repealing Minnesota Statutes 2002, sections 
  1.14            161.115, subdivision 199; 161.44, subdivision 9.  
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.17  13.44, subdivision 3, is amended to read: 
  1.18     Subd. 3.  [REAL PROPERTY; APPRAISAL DATA.] (a) 
  1.19  [CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or 
  1.20  appraised values of individual parcels of real property which 
  1.21  are made by personnel of the state, its agencies and 
  1.22  departments, or a political subdivision or by independent 
  1.23  appraisers acting for the state, its agencies and departments, 
  1.24  or a political subdivision for the purpose of selling or 
  1.25  acquiring land through purchase or condemnation are classified 
  1.26  as confidential data on individuals or protected nonpublic data. 
  1.27     (b) [PRIVATE OR NONPUBLIC DATA.] Appraised values of 
  1.28  individual parcels of real property which are made by appraisers 
  1.29  working for fee owners or contract purchasers who have received 
  1.30  an offer to purchase their property from the state, its agencies 
  2.1   and departments, or a political subdivision are classified as 
  2.2   private data on individuals or nonpublic data. 
  2.3      (c) [PUBLIC DATA.] The data made confidential or protected 
  2.4   nonpublic by the provisions of paragraph (a) shall become public 
  2.5   upon the occurrence of any of the following:  
  2.6      (1) the negotiating parties exchange appraisals; 
  2.7      (2) the data are submitted to a court appointed 
  2.8   condemnation commissioner; 
  2.9      (3) (2) the data are presented in court in condemnation 
  2.10  proceedings; or 
  2.11     (4) (3) the negotiating parties enter into an agreement for 
  2.12  the purchase and sale of the property; or 
  2.13     (5) the data are submitted to the owner under section 
  2.14  117.036. 
  2.15     [EFFECTIVE DATE.] This section is effective the day 
  2.16  following final enactment. 
  2.17     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.18  117.036, is amended to read: 
  2.19     117.036 [APPRAISAL AND NEGOTIATION REQUIREMENTS APPLICABLE 
  2.20  TO ACQUISITION OF PROPERTY FOR TRANSPORTATION PURPOSES.] 
  2.21     Subdivision 1.  [APPLICATION.] This section applies to the 
  2.22  acquisition of property for public highways, streets, roads, 
  2.23  alleys, airports, mass transit facilities, or for other 
  2.24  transportation facilities or purposes. 
  2.25     Subd. 2.  [APPRAISAL.] (a) Before commencing an eminent 
  2.26  domain proceeding under this chapter acquiring an interest in 
  2.27  real property, the acquiring authority must obtain at least one 
  2.28  appraisal for the property proposed to be acquired.  In making 
  2.29  the appraisal, the appraiser must confer with one or more of the 
  2.30  fee owners or contract purchasers of the property, if reasonably 
  2.31  possible.  Notwithstanding section 13.44 or any other law to the 
  2.32  contrary, the acquiring authority must provide the fee owner or 
  2.33  contract purchaser with a copy of the appraisal at least 20 days 
  2.34  before presenting a petition under section 117.055, the 
  2.35  acquiring authority must provide the owner with a copy of the 
  2.36  appraisal and inform the owner of the owner's fee owner or 
  3.1   contract purchaser of the fee owner's or contract purchaser's 
  3.2   right to obtain an appraisal under this section.  Upon request, 
  3.3   the acquiring authority must make available to the fee owner or 
  3.4   contract purchaser all appraisals of the property. 
  3.5      (b) The fee owner or contract purchaser may obtain an 
  3.6   appraisal by a qualified appraiser of the property proposed to 
  3.7   be acquired.  The fee owner or contract purchaser is entitled to 
  3.8   reimbursement for the reasonable costs of the appraisal from the 
  3.9   acquiring authority up to a maximum of $1,500 within 30 days 
  3.10  after the owner if the fee owner or contract purchaser submits 
  3.11  to the acquiring authority the information necessary for 
  3.12  reimbursement, provided that the owner does so within 60 days 
  3.13  after the owner receives the appraisal from the authority under 
  3.14  paragraph (a).  The acquiring authority must pay the 
  3.15  reimbursement to the fee owner or contract purchaser within 30 
  3.16  days after receiving a copy of the appraisal and the 
  3.17  reimbursement information.  Upon agreement between the fee owner 
  3.18  or contract purchaser and the acquiring authority, the acquiring 
  3.19  authority may pay the reimbursement up to $1,500 directly to the 
  3.20  appraiser. 
  3.21     Subd. 3.  [NEGOTIATION.] In addition to the appraisal 
  3.22  requirements under subdivision 2, before commencing an eminent 
  3.23  domain proceeding, the acquiring authority must make a good 
  3.24  faith attempt to negotiate personally with the fee owner or 
  3.25  contract purchaser of the property in order to acquire the 
  3.26  property by direct purchase instead of the use of eminent domain 
  3.27  proceedings.  In making this negotiation, the acquiring 
  3.28  authority must consider the appraisals in its possession, 
  3.29  including any appraisal obtained and furnished by the fee owner 
  3.30  or contract purchaser if available, and other information that 
  3.31  may be relevant to a determination of damages under this chapter.
  3.32     Subd. 4.  [INFORMATION TO BE PREPARED.] The commissioner of 
  3.33  transportation, in consultation with the attorney general and 
  3.34  one or more professional associations of real estate appraisers, 
  3.35  shall prepare a publication of not more than two pages that 
  3.36  describes the eminent domain process for transportation 
  4.1   projects, including the reasons for condemnation, the procedures 
  4.2   followed by condemnors, how property owners may influence the 
  4.3   condemnation process, and the rights of property owners affected 
  4.4   by condemnation.  The commissioner shall make this publication 
  4.5   available to all persons on whose property the commissioner has 
  4.6   made an appraisal or to whom the commissioner has made an offer 
  4.7   to purchase.  The commissioner may make the publication 
  4.8   available to other acquiring authorities and may charge a price 
  4.9   to recover the commissioner's costs. 
  4.10     Sec. 3.  Minnesota Statutes 2002, section 117.075, is 
  4.11  amended to read: 
  4.12     117.075 [COURT TO APPOINT COMMISSIONERS.] 
  4.13     Subdivision 1.  [HEARING ON NECESSITY, PURPOSE.] Upon proof 
  4.14  being filed of the service of such notice, the court, at the 
  4.15  time and place therein fixed or to which the hearing may be 
  4.16  adjourned, shall hear all competent evidence offered for or 
  4.17  against the granting of the petition, regulating the order of 
  4.18  proof as it may deem best.  
  4.19     Subd. 2.  [EVIDENCE.] Except as provided in subdivision 3, 
  4.20  if the proposed taking shall appear to be necessary and such as 
  4.21  is authorized by law, the court by an order shall appoint three 
  4.22  disinterested commissioners, and at least two alternates, to 
  4.23  ascertain and report the amount of damages that will be 
  4.24  sustained by the several owners on account of such taking.  
  4.25     Subd. 3.  [EVIDENCE; PROPERTY TAKEN FOR TRANSFER TO ENTITY 
  4.26  WITHOUT TAKING AUTHORITY.] (a) If all or a portion of the 
  4.27  property proposed to be taken may be sold, leased, licensed, 
  4.28  transferred, or otherwise conveyed to a person or entity without 
  4.29  the power of eminent domain, the court shall not authorize the 
  4.30  taking unless the petitioner proves by a preponderance of the 
  4.31  evidence that the taking is reasonably necessary, the taking is 
  4.32  authorized by law and is for a public, not private, purpose.  In 
  4.33  the event that the court determines that a taking is not 
  4.34  reasonably necessary, is not authorized by law, or is not for a 
  4.35  public purpose, the owner may recover from the petitioner 
  4.36  reasonable costs and expenses including attorney fees.  
  5.1      (b) This subdivision does not apply to the Metropolitan 
  5.2   Council Environmental Services Division, public service 
  5.3   corporations, public utilities, gas, electric, telephone or 
  5.4   cable communication companies, cooperative associations, natural 
  5.5   gas pipelines, and crude oil or petroleum products pipelines 
  5.6   that have the right of eminent domain under federal or Minnesota 
  5.7   law.  This subdivision also does not apply to municipal 
  5.8   utilities, municipalities operating municipally owned utilities, 
  5.9   or municipal power agencies when the exercise of the powers of 
  5.10  eminent domain are for the acquisition of property to be used 
  5.11  exclusively for utility operations. 
  5.12     Subd. 4.  [COMMISSIONER QUALIFICATIONS.] Before appointing 
  5.13  a commissioner, the court shall inquire whether each prospective 
  5.14  commissioner has any relationship, business or otherwise, to any 
  5.15  of the parties in the proceeding, or any interest in the 
  5.16  proceeding which may constitute a conflict of interest, or which 
  5.17  may create the appearance of impropriety should that person be 
  5.18  appointed.  Responses to this inquiry must be either written or 
  5.19  on the record and made available by the court to any party in 
  5.20  the proceeding before and after appointment.  No person who 
  5.21  might have difficulty in rendering an unbiased decision may be 
  5.22  appointed to serve.  The court, in its discretion, may appoint 
  5.23  one registered, practicing attorney to the commission who is 
  5.24  knowledgeable in eminent domain matters.  All other 
  5.25  commissioners appointed must be persons actively engaged in the 
  5.26  occupation of real estate sales or real estate appraising or 
  5.27  persons knowledgeable in real estate values.  
  5.28     Subd. 5.  [FIRST MEETING; OATH.] The order shall fix the 
  5.29  time and place of the first meeting of the three commissioners 
  5.30  and prescribe their compensation.  At the first meeting at the 
  5.31  office of the court administrator of district court the 
  5.32  appointees must be sworn by the court administrator or an 
  5.33  authorized deputy and shall take and sign the following oath 
  5.34  before assuming their duties as commissioners: 
  5.35                       (TITLE OF PROCEEDING) 
  5.36     .................................  does swear under penalty 
  6.1      of perjury as follows: 
  6.2      I will faithfully and justly perform to the best of my 
  6.3      ability, all the duties of the office and trust which I now 
  6.4      assume as commissioner in the above entitled proceeding.  I 
  6.5      further swear that, except as disclosed in writing or on 
  6.6      the record, I have no interest in any of the lands in the 
  6.7      above proceeding or any present or past relationship, 
  6.8      business or personal, with any of the parties to the above 
  6.9      proceeding or any other actual or potential conflict of 
  6.10     interest, and that I will render fair and impartial 
  6.11     decisions, so help me God. 
  6.12     Subd. 6.  [COURT ORDER MAY LIMIT ACQUISITION.] The order 
  6.13  may, in the discretion of the court, limit the title or easement 
  6.14  to be acquired by the petitioner by defining the rights and 
  6.15  privileges which the owner of any of the lands may exercise 
  6.16  therein in subordination to the public uses to which it is 
  6.17  appropriated.  
  6.18     Subd. 7.  [REPLACEMENT OF COMMISSIONER.] In case any 
  6.19  commissioner fails to act or fails to meet the qualifications 
  6.20  required by this section, the court without further notice may 
  6.21  appoint another in that commissioner's place.  
  6.22     Subd. 8.  [APPLICATION TO BE A COMMISSIONER.] The court 
  6.23  administrator of court in each county shall post in the 
  6.24  courthouse in a prominent place a notice that a qualified person 
  6.25  may apply to have the person's name placed upon a list of 
  6.26  potential commission appointees for eminent domain proceedings. 
  6.27  The notice must contain the language of the oath which the 
  6.28  commissioners are required to take upon appointment and shall 
  6.29  list the other qualifications set forth in this section.  The 
  6.30  court shall give due consideration to the names appearing on the 
  6.31  list, but is not bound to make appointments from the list. 
  6.32     [EFFECTIVE DATE.] This section is effective the day 
  6.33  following final enactment. 
  6.34     Sec. 4.  Minnesota Statutes 2002, section 160.15, is 
  6.35  amended to read: 
  6.36     160.15 [PRESERVING SECTION OR QUARTER SECTION CORNERS.] 
  7.1      Subdivision 1.  [PERMANENT MARKING OF CORNERS.] Whenever 
  7.2   the construction, reconstruction, or maintenance of a 
  7.3   public street or highway, including city streets, causes the 
  7.4   destruction or obliteration of a known section or quarter- 
  7.5   section corner marking marker or monument, it shall be the duty 
  7.6   of the road authority having jurisdiction over the highway or 
  7.7   street to shall provide for the permanent marking of such the 
  7.8   corners and to place reference or witness monuments so that the 
  7.9   corners can be readily located.  
  7.10     Subd. 2.  [MANNER OF PLACEMENT.] The permanent marking of 
  7.11  the corners and establishment of reference or witness 
  7.12  monuments shall must be in the manner following:  At the exact 
  7.13  location of the corner there shall must be placed a durable 
  7.14  stone, concrete, or metal marker not less than four inches in 
  7.15  diameter at the top and not less than 18 inches deep.  In the 
  7.16  case of a paved highway there shall also be placed over the 
  7.17  marker and in the surface of the pavement a metallic plug not 
  7.18  less than one inch in diameter and two inches in depth., placed 
  7.19  so as not to be disturbed by routine maintenance activities.  
  7.20  For a paved highway, a supplemental marker must be placed over 
  7.21  the durable monument.  The supplemental marker must be visible 
  7.22  at the road surface and set in a manner so as not to be 
  7.23  disturbed by routine snow plowing.  When not practical or safe 
  7.24  to set a corner marker in a highway surface, a durable metal 
  7.25  marker may be set as a permanent witness monument on the section 
  7.26  line or quarter-section line.  
  7.27     Subd. 3.  [TIME OF PLACEMENT; MONUMENT OF DURABLE 
  7.28  MATERIAL.] Reference or witness monuments evidencing the 
  7.29  location of the corner shall must be established before the 
  7.30  obliteration of the corner in at least two places most 
  7.31  practicable and shall consist of a durable stone, concrete, or 
  7.32  cast iron metal marker. 
  7.33     Subd. 4.  [FILING OF CERTIFICATE.] The engineer or land 
  7.34  surveyor placing and establishing the markers or monuments shall 
  7.35  file a certificate to that effect in the office of the county 
  7.36  recorder, or in the office of the county surveyor where the 
  8.1   county maintains a full-time office, in the county or counties 
  8.2   wherein the markers or monuments were placed.  Each 
  8.3   certificate shall must contain only the record of markers and 
  8.4   monuments at one corner.  The county recorder may charge a fee 
  8.5   of 50 cents for each certificate filed. 
  8.6      Subd. 5.  [CONTENTS OF CERTIFICATE.] The certificates shall 
  8.7   must be on sheets of durable material, which sheets shall must 
  8.8   be in size 8-1/2 by 11 inches with a margin at the left for 
  8.9   binding.  The certificates shall must contain the following: 
  8.10     (a) (1) identification of section, or quarter-section 
  8.11  corner.; 
  8.12     (b) (2) description of monument removed.; 
  8.13     (c) (3) description of replacement monument.; 
  8.14     (d) (4) reference ties or witness monuments.; 
  8.15     (e) (5) statements relating to physical and parol evidence 
  8.16  relating to history and authenticity of the corner monument.; 
  8.17     (f) (6) date of remonumentation.; and 
  8.18     (g) (7) certification by a registered land surveyor or 
  8.19  registered engineer. 
  8.20     Subd. 6.  [COST OF PLACING MARKERS.] The cost of placing 
  8.21  the markers and monuments, including filing fees, shall must be 
  8.22  paid out of the respective funds provided by law, or set aside 
  8.23  for highway or street purposes. 
  8.24     Sec. 5.  Minnesota Statutes 2002, section 161.44, is 
  8.25  amended by adding a subdivision to read: 
  8.26     Subd. 4a.  [TEN-YEAR EXCEPTION.] Notwithstanding 
  8.27  subdivisions 2, 3, and 4, the commissioner is not required to 
  8.28  offer to reconvey land no longer needed for trunk highway 
  8.29  purposes if the land was acquired by the commissioner at least 
  8.30  ten years before the commissioner conveys the land. 
  8.31     Sec. 6.  Minnesota Statutes 2002, section 161.44, is 
  8.32  amended by adding a subdivision to read: 
  8.33     Subd. 9a.  [APPROPRIATION.] Proceeds from the sale or lease 
  8.34  of real estate and buildings under this section and sections 
  8.35  161.23 and 161.141 must be paid into the trunk highway fund and 
  8.36  are appropriated to the commissioner for paying (1) for the 
  9.1   actual cost of selling or leasing the real estate or buildings, 
  9.2   (2) for the fees required to be paid under this section and 
  9.3   section 161.23, and (3) for the actual cost of construction, 
  9.4   reconstruction, or improvement of trunk highways, including (i) 
  9.5   consultant usage to support these activities, (ii) payments to 
  9.6   landowners for lands acquired for highway rights-of-way, (iii) 
  9.7   payments to lessees, (iv) interest subsidies, and (v) relocation 
  9.8   expenses.  Proceeds are available until expended. 
  9.9      Sec. 7.  Minnesota Statutes 2002, section 161.442, is 
  9.10  amended to read: 
  9.11     161.442 [RECONVEYANCE TO FORMER OWNER.] 
  9.12     Notwithstanding sections 161.23, 161.41, 161.411, 161.43, 
  9.13  161.44, or any other statute, the commissioner of 
  9.14  transportation, with the consent of the owner, or for good cause 
  9.15  and with the consent of the court, may transfer, sell, or convey 
  9.16  real property including fixtures, and interests in real property 
  9.17  including easements, to the owner from whom the property was 
  9.18  acquired by the state for trunk highway purposes through a 
  9.19  pending eminent domain action.  The transfer of title may be by 
  9.20  stipulation, partial dismissal, bill of sale, or conveyance.  
  9.21  Any resulting change in the state's acquisition must be 
  9.22  explained in the final certificate for that action.  This 
  9.23  provision does not confer on a landowner the right to compel a 
  9.24  reconveyance without the consent of the commissioner. 
  9.25     [EFFECTIVE DATE.] This section is effective the day 
  9.26  following final enactment. 
  9.27     Sec. 8.  Minnesota Statutes 2002, section 515B.1-107, is 
  9.28  amended to read: 
  9.29     515B.1-107 [EMINENT DOMAIN.] 
  9.30     (a) If a unit is acquired by eminent domain, or if part of 
  9.31  a unit is acquired by eminent domain leaving the unit owner with 
  9.32  a remnant which may not practically or lawfully be used for any 
  9.33  material purpose permitted by the declaration, the award shall 
  9.34  compensate the unit owner and secured party in the unit as their 
  9.35  interests may appear, whether or not any common element interest 
  9.36  is acquired.  Upon acquisition, unless the order or final 
 10.1   certificate otherwise provides, that unit's allocated interests 
 10.2   are automatically reallocated among the remaining units in 
 10.3   proportion to their respective allocated interests prior to the 
 10.4   taking, and the association shall promptly prepare, execute, and 
 10.5   record an amendment to the declaration reflecting the 
 10.6   allocations.  Any remnant of a unit remaining after part of a 
 10.7   unit is taken under this subsection is thereafter a common 
 10.8   element. 
 10.9      (b) Except as provided in subsection (a), if part of a unit 
 10.10  is acquired by eminent domain, the award shall compensate the 
 10.11  unit owner and secured party for the reduction in value of the 
 10.12  unit and its interest in the common elements, whether or not any 
 10.13  common elements are acquired.  Upon acquisition, unless the 
 10.14  order or final certificate otherwise provides, (i) that unit's 
 10.15  allocated interests are reduced in proportion to the reduction 
 10.16  in the size of the unit, or on any other basis specified in the 
 10.17  declaration and (ii) the portion of the allocated interests 
 10.18  divested from the partially acquired unit are automatically 
 10.19  reallocated to that unit and to the remaining units in 
 10.20  proportion to the respective allocated interests of those units 
 10.21  before the taking, with the partially acquired unit 
 10.22  participating in the reallocation on the basis of its reduced 
 10.23  allocated interests. 
 10.24     (c) If part of the common elements is acquired by eminent 
 10.25  domain, the association shall accept service of process on 
 10.26  behalf of all unit owners and the portion of the award 
 10.27  attributable to the common elements taken shall be paid to the 
 10.28  association.  Unless the declaration provides otherwise, any 
 10.29  portion of the award attributable to the acquisition of a 
 10.30  limited common element shall be equally divided among the owners 
 10.31  of the units to which that limited common element was allocated 
 10.32  at the time of acquisition and their secured parties, as their 
 10.33  interests may appear or as provided by the declaration. 
 10.34     (d) In any eminent domain proceeding the units shall be 
 10.35  treated as separate parcels of real estate for valuation 
 10.36  purposes, regardless of the number of units subject to the 
 11.1   proceeding. 
 11.2      (e) Any distribution to a unit owner from the proceeds of 
 11.3   an eminent domain award shall be subject to any limitations 
 11.4   imposed by the declaration or bylaws. 
 11.5      (f) The court order or final certificate containing the 
 11.6   final awards shall be recorded in every county in which any 
 11.7   portion of the common interest community is located. 
 11.8      Sec. 9.  Minnesota Statutes 2002, section 515B.3-102, is 
 11.9   amended to read: 
 11.10     515B.3-102 [POWERS OF UNIT OWNERS' ASSOCIATION.] 
 11.11     (a) Except as provided in subsection (b), and subject to 
 11.12  the provisions of the declaration or bylaws, the association 
 11.13  shall have the power to: 
 11.14     (1) adopt, amend and revoke rules and regulations not 
 11.15  inconsistent with the articles of incorporation, bylaws and 
 11.16  declaration, as follows:  (i) regulating the use of the common 
 11.17  elements; (ii) regulating the use of the units, and conduct of 
 11.18  unit occupants, which may jeopardize the health, safety or 
 11.19  welfare of other occupants, which involves noise or other 
 11.20  disturbing activity, or which may damage the common elements or 
 11.21  other units; (iii) regulating or prohibiting animals; (iv) 
 11.22  regulating changes in the appearance of the common elements and 
 11.23  conduct which may damage the common interest community; (v) 
 11.24  regulating the exterior appearance of the common interest 
 11.25  community, including, for example, balconies and patios, window 
 11.26  treatments, and signs and other displays, regardless of whether 
 11.27  inside a unit; (vi) implementing the articles of incorporation, 
 11.28  declaration and bylaws, and exercising the powers granted by 
 11.29  this section; and (vii) otherwise facilitating the operation of 
 11.30  the common interest community; 
 11.31     (2) adopt and amend budgets for revenues, expenditures and 
 11.32  reserves, and levy and collect assessments for common expenses 
 11.33  from unit owners; 
 11.34     (3) hire and discharge managing agents and other employees, 
 11.35  agents, and independent contractors; 
 11.36     (4) institute, defend, or intervene in litigation or 
 12.1   administrative proceedings (i) in its own name on behalf of 
 12.2   itself or two or more unit owners on matters affecting the 
 12.3   common elements or other matters affecting the common interest 
 12.4   community or, (ii) with the consent of the owners of the 
 12.5   affected units on matters affecting only those units; 
 12.6      (5) make contracts and incur liabilities; 
 12.7      (6) regulate the use, maintenance, repair, replacement and 
 12.8   modification of the common elements and the units; 
 12.9      (7) cause improvements to be made as a part of the common 
 12.10  elements, and, in the case of a cooperative, the units; 
 12.11     (8) acquire, hold, encumber, and convey in its own name any 
 12.12  right, title, or interest to real estate or personal property, 
 12.13  but (i) common elements in a condominium or planned community 
 12.14  may be conveyed or subjected to a security interest only 
 12.15  pursuant to section 515B.3-112, or (ii) part of a cooperative 
 12.16  may be conveyed, or all or part of a cooperative may be 
 12.17  subjected to a security interest, only pursuant to section 
 12.18  515B.3-112; 
 12.19     (9) grant public utility and transportation easements 
 12.20  through, over or under the common elements, and, subject to 
 12.21  approval by resolution of unit owners other than declarant or 
 12.22  its affiliates at a meeting duly called, grant other public or 
 12.23  private easements, leases and licenses through, over or under 
 12.24  the common elements; 
 12.25     (10) impose and receive any payments, fees, or charges for 
 12.26  the use, rental, or operation of the common elements, other than 
 12.27  limited common elements, and for services provided to unit 
 12.28  owners; 
 12.29     (11) impose charges for late payment of assessments and, 
 12.30  after notice and an opportunity to be heard, levy reasonable 
 12.31  fines for violations of the declaration, bylaws, and rules and 
 12.32  regulations of the association; 
 12.33     (12) impose reasonable charges for the review, preparation 
 12.34  and recordation of amendments to the declaration, resale 
 12.35  certificates required by section 515B.4-107, statements of 
 12.36  unpaid assessments, or furnishing copies of association records; 
 13.1      (13) provide for the indemnification of its officers and 
 13.2   directors, and maintain directors' and officers' liability 
 13.3   insurance; 
 13.4      (14) provide for reasonable procedures governing the 
 13.5   conduct of meetings and election of directors; 
 13.6      (15) exercise any other powers conferred by law, or by the 
 13.7   declaration, articles of incorporation or bylaws; and 
 13.8      (16) exercise any other powers necessary and proper for the 
 13.9   governance and operation of the association. 
 13.10     (b) Notwithstanding subsection (a) the declaration or 
 13.11  bylaws may not impose limitations on the power of the 
 13.12  association to deal with the declarant which are more 
 13.13  restrictive than the limitations imposed on the power of the 
 13.14  association to deal with other persons. 
 13.15     Sec. 10.  Minnesota Statutes 2002, section 515B.3-112, is 
 13.16  amended to read: 
 13.17     515B.3-112 [CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS.] 
 13.18     (a) In a condominium or planned community, unless the 
 13.19  declaration provides otherwise, portions of the common elements 
 13.20  may be conveyed or subjected to a security interest by the 
 13.21  association if persons entitled to cast at least 67 percent of 
 13.22  the votes in the association, including 67 percent of the votes 
 13.23  allocated to units not owned by a declarant, or any larger 
 13.24  percentage the declaration specifies, approve that action in 
 13.25  writing or at a meeting; but all unit owners of units to which 
 13.26  any limited common element is allocated must agree in order to 
 13.27  convey that limited common element or subject it to a security 
 13.28  interest.  The declaration may specify a smaller percentage only 
 13.29  if all of the units are restricted to nonresidential use. 
 13.30     (b) In a cooperative, unless the declaration provides 
 13.31  otherwise, part of a cooperative may be conveyed, or all or a 
 13.32  part subjected to a security interest, by the association if 
 13.33  persons entitled to cast at least 67 percent of the votes in the 
 13.34  association, including 67 percent of the votes allocated to 
 13.35  units in which the declarant has no interest, or any larger 
 13.36  percentage the declaration specifies, approves that action in 
 14.1   writing or at a meeting.  If fewer than all of the units or 
 14.2   limited common elements are to be conveyed or subjected to a 
 14.3   security interest, then all unit owners of those units, or the 
 14.4   units to which those limited common elements are allocated, must 
 14.5   agree in order to convey those units or limited common elements 
 14.6   or subject them to a security interest.  The declaration may 
 14.7   specify a smaller percentage only if all of the units are 
 14.8   restricted to nonresidential use.  Any purported conveyance or 
 14.9   other voluntary transfer of an entire cooperative is void, 
 14.10  unless made pursuant to section 515B.2-119. 
 14.11     (c) The association, on behalf of the unit owners, may 
 14.12  contract to convey or encumber an interest in the common 
 14.13  elements of a common interest community pursuant to this 
 14.14  subsection, subject to the required approval.  After the 
 14.15  approval has been obtained, the association shall have a power 
 14.16  of attorney coupled with an interest to effect the conveyance or 
 14.17  encumbrance on behalf of all unit owners in the common interest 
 14.18  community, including the power to execute deeds, mortgages, or 
 14.19  other instruments of conveyance or security.  The instrument 
 14.20  conveying or creating the interest in the common interest 
 14.21  community shall be recorded and shall include as exhibits (i) an 
 14.22  affidavit of the secretary of the association certifying that 
 14.23  the approval required by this section has been obtained and (ii) 
 14.24  a schedule of the names of all unit owners and units in the 
 14.25  common interest community as of the date of the approval. 
 14.26     (d) Except as provided in section 515B.3-102(a)(9), unless 
 14.27  made pursuant to this section, any purported conveyance, 
 14.28  encumbrance, or other voluntary transfer of common elements, or 
 14.29  of any part of a cooperative, is void. 
 14.30     (e) In the case of a conveyance involving a condominium, or 
 14.31  a cooperative in which the unit owners' interests are 
 14.32  characterized as real estate, the association shall record, 
 14.33  simultaneously with the recording of the instrument of 
 14.34  conveyance, an amended CIC plat showing the real estate 
 14.35  constituting the common interest community exclusive of the real 
 14.36  estate conveyed.  In all common interest communities, upon 
 15.1   recording of the instrument of conveyance, the declaration, and 
 15.2   all rights and obligations arising therefrom, shall be deemed 
 15.3   released and terminated as to the real estate 
 15.4   conveyed.  Conveyances to the state or a political subdivision 
 15.5   for transportation purposes are exempt from the requirements of 
 15.6   this subsection. 
 15.7      (f) A conveyance or encumbrance of common elements, or of a 
 15.8   cooperative, pursuant to this section shall not deprive any unit 
 15.9   of its rights of support, reasonable access or utility services. 
 15.10     (g) Except as provided in subsection (a), or unless the 
 15.11  declaration otherwise provides, a conveyance or encumbrance of 
 15.12  common elements pursuant to this section does not affect the 
 15.13  priority or validity of preexisting encumbrances. 
 15.14     (h) Any proceeds of the conveyance or creation of a 
 15.15  security interest under this section are an asset of the 
 15.16  association. 
 15.17     (i) This section shall not apply to any conveyance or 
 15.18  encumbrance of any interest in a proprietary lease. 
 15.19     Sec. 11.  [CONVEYANCE OF EXCESS AND SURPLUS PROPERTY; 
 15.20  REPORT.] 
 15.21     On or before January 30, 2005, the commissioner of 
 15.22  transportation shall report to the house of representatives and 
 15.23  senate committees with jurisdiction over transportation policy 
 15.24  and finance concerning conveyance of excess real estate and 
 15.25  surplus property.  The report must include:  
 15.26     (1) current timelines for conveyance and reconveyance of 
 15.27  excess and surplus property; 
 15.28     (2) a description of the department's administration and 
 15.29  performance of these activities, including level of staffing; 
 15.30     (3) recommendations for streamlining and expediting the 
 15.31  sale or reconveyance of excess and surplus property; and 
 15.32     (4) identification of statutory changes necessary to 
 15.33  implement a streamlined process. 
 15.34     Sec. 12.  [REPEALER.] 
 15.35     Subdivision 1.  [RECEIPTS PAID INTO TRUNK HIGHWAY 
 15.36  FUND.] Minnesota Statutes 2002, section 161.44, subdivision 9, 
 16.1   is repealed. 
 16.2      Subd. 2.  [LEGISLATIVE ROUTE NO. 268 REMOVED.] (a) 
 16.3   Minnesota Statutes 2002, section 161.115, subdivision 199, is 
 16.4   repealed on the effective date in the notice of transfer issued 
 16.5   by the commissioner of transportation transferring jurisdiction 
 16.6   of Legislative Route No. 268 to Pipestone County. 
 16.7      (b) The revisor of statutes shall delete the route 
 16.8   identified in paragraph (a) from Minnesota Statutes when the 
 16.9   commissioner of transportation sends notice to the revisor in 
 16.10  writing informing the revisor of the effective date and that the 
 16.11  conditions required to transfer the route are satisfied.