SF 2175

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 05/16/2014 04:05pm

A bill for an act
relating to state government; prohibiting state agencies from paying more than
ten percent over the appraised value to acquire real property; proposing coding
for new law in Minnesota Statutes, chapter 16B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16B.297] ACQUISITION OF REAL PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "agency" means an
agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
Minnesota State Colleges and Universities, but does not include the Department of
Transportation, the Department of Natural Resources, or the Board of Water and Soil
Resources.
new text end

new text begin Subd. 2. new text end

new text begin Maximum price. new text end

new text begin When an agency is authorized to acquire real property or
an interest in real property valued in excess of $100,000 with public money, the procedure
in this section applies. The agency must first prepare a fact sheet providing a legal
description of the real property to be acquired and the legal authority for its acquisition.
The agency must obtain an appraisal of the real property by an appraiser who holds a
state appraiser license issued by the Department of Commerce. The appraisal must be
in conformity with the Uniform Standards of Professional Appraisal Practice of the
Appraisal Foundation. The appraiser shall not have an interest directly or indirectly in
any of the real property to be appraised. The agency may pay less for the property than
the appraised value but must not agree to pay more than ten percent above the appraised
value. New appraisals may be made at the discretion of the agency.
new text end