Minnesota Legislature
SF 2175
1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/29/2014 12:47pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to state government; prohibiting state agencies from paying more than
1.3ten percent over the appraised value to acquire real property; proposing coding
1.4for new law in Minnesota Statutes, chapter 16B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.7 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.8agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.9Minnesota State Colleges and Universities, but does not include the Department of
1.10Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.11Resources.
1.12 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.13an interest in real property with public money, the procedure in this section applies. The
1.14agency must first prepare a fact sheet providing a legal description of the real property to
1.15be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.16of the real property by a person licensed under chapter 82B as an appraiser for the type
1.17of real property being appraised and the appraisal must be done in accordance with the
1.18requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.19in any of the real property to be appraised. The agency may pay less for the property than
1.20the appraised value but must not agree to pay more than ten percent above the appraised
1.21value. The appraised value does not include closing, relocation, or other costs authorized
1.22by law. If the real property is appraised at less than $100,000 by the agency and the seller,
1.23the agency may pay more than 110 percent of the agency's appraised value but no more than
1.24the seller's appraised value. New appraisals may be made at the discretion of the agency.
1.3ten percent over the appraised value to acquire real property; proposing coding
1.4for new law in Minnesota Statutes, chapter 16B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.7 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.8agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.9Minnesota State Colleges and Universities, but does not include the Department of
1.10Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.11Resources.
1.12 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.13an interest in real property with public money, the procedure in this section applies. The
1.14agency must first prepare a fact sheet providing a legal description of the real property to
1.15be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.16of the real property by a person licensed under chapter 82B as an appraiser for the type
1.17of real property being appraised and the appraisal must be done in accordance with the
1.18requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.19in any of the real property to be appraised. The agency may pay less for the property than
1.20the appraised value but must not agree to pay more than ten percent above the appraised
1.21value. The appraised value does not include closing, relocation, or other costs authorized
1.22by law. If the real property is appraised at less than $100,000 by the agency and the seller,
1.23the agency may pay more than 110 percent of the agency's appraised value but no more than
1.24the seller's appraised value. New appraisals may be made at the discretion of the agency.