1.1 	A bill for an act
1.2 	relating to transportation; modifying provisions relating to property transactions 
1.3 	of Department of Transportation; making clarifying changes;amending 
1.4 	Minnesota Statutes 2004, sections 117.036; 161.44, by adding a subdivision; 
1.5 	161.442.
1.6 	 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 117.036, is amended to read:
1.8 	117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS 
1.9 	APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION 
1.10 	PURPOSES.
1.11 		Subdivision 1.Application. This section applies to the acquisition of property 
1.12 	for public highways, streets, roads, alleys, airports, mass transit facilities, or for other 
1.13 	transportation facilities or purposes.
1.14 		Subd. 2.Appraisal. (a) Before commencing an eminent domain proceeding under 
1.15 	this chapter acquiring an interest in real property, the acquiring authority must obtain at 
1.16 	least one appraisal for the property proposed to be acquired. In making the appraisal, the 
1.17 	appraiser must confer with one or more of the fee owners or contract purchasers of the 
1.18 	property, if reasonably possible. Notwithstanding section 13.44 or any other law to the 
1.19 	contrary, the acquiring authority must provide the fee owner or contract purchaser with a 
1.20 	copy of the appraisal at least 20 days before presenting a petition under section  117.055, 
1.21 	the acquiring authority must provide the owner with a copy of the appraisal and inform the 
1.22 	owner of the owner's fee owner or contract purchaser of the  right to obtain an appraisal 
1.23 	under this section. Upon request, the acquiring authority must make available to the fee 
1.24 	owner or contract purchaser all appraisals of the property.
2.1 	(b) The fee owner  or contract purchaser may obtain an appraisal by a qualified 
2.2 	appraiser of the property proposed to be acquired. The fee owner  or contract purchaser 
2.3 	is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring 
2.4 	authority up to a maximum of $1,500 within 30 days after the for an appraisal of 
2.5 	residential, agricultural, or open land and up to a maximum of $5,000 for an appraisal of 
2.6 	commercial or industrial land if the fee owner or contract purchaser:
2.7 	(1) submits to the acquiring authority a copy of the appraisal and the information 
2.8 	necessary for reimbursement, provided that the owner does so;
2.9 	(2) requests reimbursement  within 60 90  days after the owner receives receiving 
2.10 	the appraisal from the authority under paragraph (a). and at least 30 days before a 
2.11 	condemnation commissioners' hearing; and
2.12 	(3) ensures that the appraisal is conducted in accordance with the Uniform Standards 
2.13 	of Professional Appraisal Practice. The acquiring authority must pay the reimbursement to 
2.14 	the fee owner or contract purchaser within 30 days after receiving a copy of the appraisal 
2.15 	and the reimbursement information. Upon agreement between the acquiring authority 
2.16 	and either the fee owner or contract purchaser, the acquiring authority may pay the 
2.17 	reimbursement directly to the appraiser.
2.18 		Subd. 3.Negotiation. In addition to the appraisal requirements under subdivision 2, 
2.19 	before commencing an eminent domain proceeding, the acquiring authority must make a 
2.20 	good faith attempt to negotiate personally with the fee owner  or contract purchaser of the 
2.21 	property in order to acquire the property by direct purchase instead of the use of eminent 
2.22 	domain proceedings. In making this negotiation, the acquiring authority must consider 
2.23 	the appraisals in its possession, including any appraisal obtained and furnished by the fee 
2.24 	owner or contract purchaser if available,  and other information that may be relevant to a 
2.25 	determination of damages under this chapter.
2.26 		Subd. 4.Condemnation commissioners' hearing. (a) Notwithstanding 
2.27 	section 13.44, an owner's appraisal may not be used or considered in a condemnation 
2.28 	commissioners' hearing conducted under section 117.085, nor may the owner's appraiser 
2.29 	testify, unless a copy of the owner's appraiser's written report is provided to the acquiring 
2.30 	authority at least five days before the hearing.
2.31 	(b) Notwithstanding section 13.44, the acquiring authority's appraisal may not be 
2.32 	used or considered in a condemnation commissioners' hearing conducted under section 
2.33 	117.085, nor may the acquiring authority's appraiser testify, unless a copy of the acquiring 
2.34 	authority's appraiser's written report is provided to the owner or contract purchaser at 
2.35 	least five days before the hearing.

3.1 	Sec. 2. Minnesota Statutes 2004, section 161.44, is amended by adding a subdivision 
3.2 	to read:
3.3 		Subd. 9a.Appropriation. (a) Proceeds from the sale or lease of real estate and 
3.4 	buildings under this section and sections 161.23 and 161.41 must be paid into the trunk 
3.5 	highway fund and are appropriated to the commissioner to pay:
3.6 	(1) for the actual cost of selling or leasing the real estate or buildings;
3.7 	 (2) the fees required to be paid under this section and section 161.23; and 
3.8 	 (3) for the actual cost of construction, reconstruction, or improvement of trunk 
3.9 	highways, including: 
3.10 	 (i) consultant usage to support these activities; 
3.11 	 (ii) payments to landowners for lands acquired for highway rights-of-way; 
3.12 	 (iii) payments to lessees; 
3.13 	 (iv) interest subsidies; and 
3.14 	 (v) relocation expenses. 
3.15 	(b) Proceeds are available until expended.

3.16 	Sec. 3. Minnesota Statutes 2004, section 161.442, is amended to read:
3.17 	161.442 RECONVEYANCE TO FORMER OWNER.
3.18 	Notwithstanding sections  161.23,  161.41,  161.411,  161.43,  161.44, or any other 
3.19 	statute, the commissioner of transportation, with the consent of the owner, or for good 
3.20 	cause and with the consent of the court, may transfer, sell, or convey real property 
3.21 	including fixtures, and interests in real property including easements, to the owner 
3.22 	from whom the property was acquired by the state for trunk highway purposes through 
3.23 	a pending eminent domain action. The transfer of title may be by stipulation, partial 
3.24 	dismissal, bill of sale, or conveyance. Any resulting change in the state's acquisition must 
3.25 	be explained in the final certificate for that action. This provision does not confer on a 
3.26 	landowner the right to compel a reconveyance without the consent of the commissioner. 

3.27 	EFFECTIVE DATE. This section is effective the day following final enactment.