Minnesota Legislature
SF 2175
Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/13/2014 10:42am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 2175
1.3relating to state government; prohibiting state agencies from paying more than
1.4ten percent over the appraised value to acquire real property; proposing coding
1.5for new law in Minnesota Statutes, chapter 16B.
1.6May 12, 2014
1.7The Honorable Sandra L. Pappas
1.8President of the Senate
1.9The Honorable Paul Thissen
1.10Speaker of the House of Representatives
1.11We, the undersigned conferees for S.F. No. 2175 report that we have agreed upon
1.12the items in dispute and recommend as follows:
1.13That the House recede from its amendments and that S.F. No. 2175 be further
1.14amended as follows:
1.15Delete everything after the enacting clause and insert:
1.16 "Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.17 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.18agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.19Minnesota State Colleges and Universities, but does not include the Department of
1.20Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.21Resources.
1.22 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.23an interest in real property with public money, the procedure in this section applies. The
1.24agency must first prepare a fact sheet providing a legal description of the real property to
1.25be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.26of the real property by a person licensed under chapter 82B as an appraiser for the type
1.27of real property being appraised and the appraisal must be done in accordance with the
1.28requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.29in any of the real property to be appraised. The agency may pay less for the property than
2.1the appraised value but must not agree to pay more than ten percent above the appraised
2.2value. If the real property is appraised at less than $100,000 by the agency and the seller,
2.3the agency may pay more than 110 percent of the agency's appraised value but no more than
2.4the seller's appraised value. New appraisals may be made at the discretion of the agency.
2.5 Sec. 2.REPORT.
2.6The commissioner of management and budget shall report by January 15, 2015, to
2.7the chairs and ranking minority members of the legislative committees with jurisdiction
2.8over policy and finance relating to real property acquisition by the state on what
2.9information and documentation related to the parties' administrative costs should be
2.10required before the state agrees to acquire real property or an interest in real property.
2.11The commissioner, as part of the report, shall recommend whether exceptions to the
2.12requirements of Minnesota Statutes, section 16B.297, are necessary to protect the public
2.13interest and make recommendations for appropriate exceptions, if any."
2.14Delete the title and insert:
2.16relating to state government; prohibiting state agencies from paying more than
2.17ten percent over the appraised value to acquire real property; requiring a report
2.18proposing coding for new law in Minnesota Statutes, chapter 16B."
1.3relating to state government; prohibiting state agencies from paying more than
1.4ten percent over the appraised value to acquire real property; proposing coding
1.5for new law in Minnesota Statutes, chapter 16B.
1.6May 12, 2014
1.7The Honorable Sandra L. Pappas
1.8President of the Senate
1.9The Honorable Paul Thissen
1.10Speaker of the House of Representatives
1.11We, the undersigned conferees for S.F. No. 2175 report that we have agreed upon
1.12the items in dispute and recommend as follows:
1.13That the House recede from its amendments and that S.F. No. 2175 be further
1.14amended as follows:
1.15Delete everything after the enacting clause and insert:
1.16 "Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.17 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.18agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.19Minnesota State Colleges and Universities, but does not include the Department of
1.20Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.21Resources.
1.22 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.23an interest in real property with public money, the procedure in this section applies. The
1.24agency must first prepare a fact sheet providing a legal description of the real property to
1.25be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.26of the real property by a person licensed under chapter 82B as an appraiser for the type
1.27of real property being appraised and the appraisal must be done in accordance with the
1.28requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.29in any of the real property to be appraised. The agency may pay less for the property than
2.1the appraised value but must not agree to pay more than ten percent above the appraised
2.2value. If the real property is appraised at less than $100,000 by the agency and the seller,
2.3the agency may pay more than 110 percent of the agency's appraised value but no more than
2.4the seller's appraised value. New appraisals may be made at the discretion of the agency.
2.5 Sec. 2.REPORT.
2.6The commissioner of management and budget shall report by January 15, 2015, to
2.7the chairs and ranking minority members of the legislative committees with jurisdiction
2.8over policy and finance relating to real property acquisition by the state on what
2.9information and documentation related to the parties' administrative costs should be
2.10required before the state agrees to acquire real property or an interest in real property.
2.11The commissioner, as part of the report, shall recommend whether exceptions to the
2.12requirements of Minnesota Statutes, section 16B.297, are necessary to protect the public
2.13interest and make recommendations for appropriate exceptions, if any."
2.14Delete the title and insert:
2.16relating to state government; prohibiting state agencies from paying more than
2.17ten percent over the appraised value to acquire real property; requiring a report
2.18proposing coding for new law in Minnesota Statutes, chapter 16B."