1.1 	A bill for an act
1.2 	relating to eminent domain; defining public use or purpose; prohibiting the use 
1.3 	of eminent domain for economic development; requiring clear and convincing 
1.4 	evidence for certain takings; providing for attorney fees and other additional 
1.5 	elements of compensation; making other changes in the exercise of eminent 
1.6 	domain; amending Minnesota Statutes 2004, sections 117.025; 117.036; 117.055; 
1.7 	117.075, subdivision 1, by adding a subdivision; 117.085; 117.51; 117.52, 
1.8 	subdivision 1, by adding a subdivision; 163.12, subdivisions 1a, 1b; proposing 
1.9 	coding for new law in Minnesota Statutes, chapter 117.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. [117.012] PREEMPTION; NO IMPLIED AUTHORITY.
1.12 		Subdivision 1.Preemption. Notwithstanding any other provision of law, including 
1.13 	any charter provision, ordinance, statute, or special law, all condemning authorities, 
1.14 	including home rule charter cities and all other political subdivisions of the state, must 
1.15 	exercise the power of eminent domain in accordance with the provisions of this chapter, 
1.16 	including all procedures, definitions, remedies, and limitations. Additional procedures, 
1.17 	remedies, or limitations that do not deny or diminish the substantive and procedural rights 
1.18 	and protections of owners under this chapter may be provided by other law, ordinance, 
1.19 	or charter.
1.20 		Subd. 2.No implied authority. The power of eminent domain shall not be implied. 
1.21 	In order to exercise the power of eminent domain, the condemning authority must have an 
1.22 	express grant of eminent domain authority. 
1.23 		Subd. 3.Requirement of public use or public purpose. Eminent domain may 
1.24 	only be used for a public use or public purpose.

2.1 	Sec. 2. Minnesota Statutes 2004, section 117.025, is amended to read:
2.2 	117.025 DEFINITIONS.
2.3 		Subdivision 1.Words, terms, and phrases. Unless the language or context clearly 
2.4 	indicates that a different meaning is intended,For the purposes of this chapter and any 
2.5 	other general or special law authorizing the exercise of the power of eminent domain, the 
2.6 	words, terms, and phrases defined in this section have the meanings given them.
2.7 		Subd. 2.Taking. "Taking" and all words and phrases of like import include every 
2.8 	interference, under the right of eminent domain, with the possession, enjoyment, or value 
2.9 	of private property.
2.10 		Subd. 3.Owner. "Owner" includes all persons interested in such with any interest 
2.11 	in the  property subject to a taking, whether as proprietors, tenants, life estate holders, 
2.12 	encumbrancers, beneficial interest holders, or otherwise.
2.13 		Subd. 4.Condemning authority. "Condemning authority" means a person or 
2.14 	entity with the power of eminent domain.
2.15 		Subd. 5.Abandoned property. "Abandoned property" means property  that: (1) has 
2.16 	been substantially unoccupied or unused for any commercial or residential purpose for at 
2.17 	least one year by a person with a legal or equitable right to occupy the property; (2) has not 
2.18 	been maintained; and (3) for which taxes have not been paid for at least two previous years. 
2.19 		Subd. 6.Blighted area. "Blighted area" means an area: 
2.20 	(1) that is zoned and used for urban use; and
2.21 	(2) where more than 50 percent of the buildings are structurally substandard.
2.22 		Subd. 7.Structurally substandard. "Structurally substandard" means: 
2.23 	(a) a building:
2.24 	(1) that was inspected by the appropriate local government and cited for one or more 
2.25 	enforceable housing, maintenance, or building code violations;
2.26 	(2) in which the cited building code violations involve one or more of the following:
2.27 	(i) a roof and roof framing element;
2.28 	(ii) support walls, beams, and headers;
2.29 	(iii) foundation, footings, and subgrade conditions;
2.30 	(iv) light and ventilation;
2.31 	(v) fire protection, including egress;
2.32 	(vi) internal utilities, including electricity, gas, and water;
2.33 	(vii) flooring and flooring elements; and 
2.34 	(viii) walls, insulation, and exterior envelope;
2.35 	(3) in which the cited housing, maintenance, or building code violations have not 
2.36 	been remedied after two notices to cure the noncompliance; and 
3.1 	(4) has uncured housing, maintenance, and building code violations, satisfaction 
3.2 	of which would cost more than 50 percent of the assessor's taxable market value for the 
3.3 	building, excluding land value, as determined under section 273.11 for property taxes 
3.4 	payable in the year in which the condemnation is commenced; or 
3.5 	(b) a building that, as of the date the condemnation is commenced, is unsafe or 
3.6 	lacking in basic equipment.
3.7 	A local government is authorized to gain access to inspect any building in a proposed 
3.8 	development or redevelopment area upon showing of probable cause that the building is 
3.9 	structurally substandard. Items of evidence that support a conclusion of probable cause 
3.10 	may include recent fire or police inspections, on-site property tax appraisals, housing 
3.11 	inspections, exterior evidence of deterioration, or other similar reliable evidence.
3.12 		Subd. 8.Environmentally contaminated area. "Environmentally contaminated 
3.13 	area" means an area:
3.14 	(1) in which more than 50 percent of the parcels contain any substance defined, 
3.15 	regulated, or listed as a hazardous substance, hazardous material, hazardous waste, toxic 
3.16 	waste, pollutant, contaminant, or toxic substance, or identified as hazardous to human 
3.17 	health or the environment under state or federal law or regulation; and
3.18 	(2) for which the estimated costs of investigation, monitoring and testing, and 
3.19 	remedial action or removal, as defined in section 115B.02, subdivisions 16 and 17, 
3.20 	respectively, including any state costs of remedial actions, exceed 100 percent of the 
3.21 	assessor's estimated market value for the contaminated parcel, as determined under section 
3.22 	273.11, for property taxes payable in the year in which the condemnation commenced, or 
3.23 	for which a court of competent jurisdiction has issued an order under law or regulations 
3.24 	adopted by Minnesota or the United States, that clean up or remediation of a contaminated 
3.25 	site occur and the property owner has failed to comply with the court's order within 
3.26 	a reasonable time.
3.27 		Subd. 9.Public nuisance. "Public nuisance" means a public nuisance under 
3.28 	section 609.74.
3.29 		Subd. 10.Public service corporation. "Public service corporation" means a 
3.30 	utility, as defined by section 116C.52, subdivision 10; gas, electric, telephone, or cable 
3.31 	communications company; cooperative association; natural gas pipeline company; crude 
3.32 	oil, or petroleum products pipeline company; municipal utility; municipality when 
3.33 	operating its municipally owned utilities; or municipal power agency. Public service 
3.34 	corporation also means a municipality or public corporation when operating an airport 
3.35 	under chapter 360 or 473, a common carrier, a watershed district, or a drainage authority. 
4.1 	Public service corporation also means an entity operating a regional distribution center 
4.2 	within an international economic development zone designated under section 469.322.
4.3 		Subd. 11.Public use; public purpose. (a) "Public use" or "public purpose" means, 
4.4 	exclusively:
4.5 	(1) the possession, occupation, ownership, and enjoyment of the land by the general 
4.6 	public, or by public agencies;
4.7 	(2) the creation or functioning of a public service corporation; or
4.8 	(3) mitigation of a blighted area, remediation of an environmentally contaminated 
4.9 	area, reduction of abandoned property, or removal of a public nuisance.
4.10 	(b) The public benefits of economic development, including an increase in tax base, 
4.11 	tax revenues, employment, or general economic health, do not by themselves constitute 
4.12 	a public use or public purpose.

4.13 	Sec. 3. [117.027] CONDEMNATION FOR BLIGHT MITIGATION AND 
4.14 	CONTAMINATION REMEDIATION.
4.15 		Subdivision 1.Buildings that are not structurally substandard in areas of blight 
4.16 	mitigation; absolute necessity. In taking property to mitigate blight, a condemning 
4.17 	authority must not take buildings that are not structurally substandard unless there is no 
4.18 	feasible alternative to the taking of the parcels on which the buildings are located in 
4.19 	order to remediate the blight and all possible steps are taken to minimize the taking of 
4.20 	buildings that are not structurally substandard. 
4.21 		Subd. 2.Uncontaminated property in environmental contamination 
4.22 	remediation areas; absolute necessity. In taking property to remediate environmental 
4.23 	contamination, a condemning authority must not take uncontaminated parcels in the area 
4.24 	unless there is no feasible alternative to the taking of the uncontaminated parcels in order 
4.25 	to complete remediation of the contaminated parcels and all possible steps are taken to 
4.26 	minimize the taking of the uncontaminated parcels.
4.27 		Subd. 3.Contribution to condition by developer disallowed. If a developer 
4.28 	involved in the redevelopment of the project area contributed to the blight or environmental 
4.29 	contamination within the project area, the condition contributed to by the developer must 
4.30 	not be used in the determination of blight or environmental contamination.

4.31 	Sec. 4. Minnesota Statutes 2004, section 117.036, is amended to read:
4.32 	117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS 
4.33 	APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION 
4.34 	PURPOSES.
5.1 		Subdivision 1.Application. This section applies to the acquisition of property 
5.2 	for public highways, streets, roads, alleys, airports, mass transit facilities, or for other 
5.3 	transportation facilities or purposes under this chapter.
5.4 		Subd. 1a.Definition of owner. For the purposes of this section, "owner" means 
5.5 	fee owner, contract purchaser, or business lessee who is entitled to condemnation 
5.6 	compensation under a lease.
5.7 		Subd. 2.Appraisal. (a) Before commencing an eminent domain proceeding under 
5.8 	this chapter, the acquiring authority must obtain at least one appraisal for the property 
5.9 	proposed to be acquired. In making the appraisal, the appraiser must confer with one or 
5.10 	more of the fee owners or contract purchasers of the property, if reasonably possible. At 
5.11 	least 20 The acquiring authority must provide the fee owner or contract purchaser with a 
5.12 	copy of each appraisal the acquiring authority has obtained for the property at the time an 
5.13 	offer is made, but no later than 60 days before presenting a petition under section  117.055, 
5.14 	the acquiring authority must provide the owner with a copy of the appraisal and inform the 
5.15 	owner of the owner's fee owner or contract purchaser of the right to obtain an appraisal 
5.16 	under this section. Upon request, the acquiring authority must make available to the fee 
5.17 	owner or contract purchaser all appraisals of the property. If the acquiring authority is 
5.18 	considering both a full and partial taking of the property, the acquiring authority shall 
5.19 	obtain and provide the fee owner or contract purchaser with appraisals for both types 
5.20 	of takings.
5.21 	(b) The fee owner or contract purchaser may obtain an appraisal by a qualified 
5.22 	appraiser of the property proposed to be acquired. The fee owner or contract purchaser 
5.23 	is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring 
5.24 	authority up to a maximum of $1,500 within 30 days after the for single family and 
5.25 	two-family residential property, agricultural property, and minimum damage acquisitions 
5.26 	and $5,000 for other types of property, provided that the fee owner or contract purchaser 
5.27 	submits to the acquiring authority the information necessary for reimbursement, provided 
5.28 	that the owner does so including a copy of the fee owner's or contract purchaser's 
5.29 	appraisal, within 60 90 days after the owner receives receiving the appraisal from the 
5.30 	authority under paragraph (a) and at least five days before a condemnation commissioners' 
5.31 	hearing. For purposes of this paragraph, a "minimum damage acquisition" means an 
5.32 	interest in property that a qualified person with appraisal knowledge indicates can be 
5.33 	acquired for a cost of $10,000 or less. For purposes of this paragraph, "agricultural 
5.34 	property" has the meaning given in section 583.22, subdivision 2.
5.35 	(c) The acquiring authority must pay the reimbursement to the fee owner or contract 
5.36 	purchaser within 30 days after receiving a copy of the appraisal and the reimbursement 
6.1 	information. Upon agreement between the acquiring authority and either the fee owner 
6.2 	or contract purchaser, the acquiring authority may pay the reimbursement directly to 
6.3 	the appraiser.
6.4 		Subd. 3.Negotiation. In addition to the appraisal requirements under subdivision 2, 
6.5 	before commencing an eminent domain proceeding, the acquiring authority must make a 
6.6 	good faith attempt to negotiate personally with the fee owner or contract purchaser of the 
6.7 	property in order to acquire the property by direct purchase instead of the use of eminent 
6.8 	domain proceedings. In making this negotiation, the acquiring authority must consider 
6.9 	the appraisals in its possession, including any appraisal obtained and furnished by the fee 
6.10 	owner or contract purchaser if available, and other information that may be relevant to a 
6.11 	determination of damages under this chapter. If the acquiring authority is considering both 
6.12 	a full and partial taking of the property, the acquiring authority must make a good-faith 
6.13 	attempt to negotiate with respect to both types of takings.
6.14 		Subd. 4.Use of appraisal at commissioners' hearing.  An appraisal must not be 
6.15 	used or considered in a condemnation commissioners' hearing, nor may the appraiser who 
6.16 	prepared the appraisal testify, unless a copy of the appraiser's written report is provided to 
6.17 	the opposing party at least five days before the hearing.

6.18 	Sec. 5. [117.0412] LOCAL GOVERNMENT PUBLIC HEARING 
6.19 	REQUIREMENTS.
6.20 		Subdivision 1.Definitions. For the purposes of this section: 
6.21 	(1) "local government" means the elected governing body of a statutory or home 
6.22 	rule charter city, county, or township; and
6.23 	(2) "local government agency" means a subdivision, agency, authority, or other 
6.24 	entity created by or whose members are appointed by the local government, including a 
6.25 	port authority, economic development authority, housing and redevelopment authority, or 
6.26 	other similar entity established under law.
6.27 		Subd. 2.Public hearing; vote by local government governing body. (a) Before a 
6.28 	local government or local government agency commences an eminent domain proceeding 
6.29 	under section 117.055, a public hearing must be held as provided in this section. The local 
6.30 	government must notify each owner of property that may be acquired in writing of the 
6.31 	public hearing on the proposed taking, post the public hearing information on the local 
6.32 	government's Web site, if any, and publish notice of the public hearing in a newspaper 
6.33 	of general circulation in the local government's jurisdiction.  Notice must be provided at 
6.34 	least 30 days but not more than 60 days before the hearing.  
7.1 	(b) Any interested person must be allowed reasonable time to present relevant 
7.2 	testimony at the public hearing.  The proceedings of the hearing must be recorded and 
7.3 	available to the public for review and comment at reasonable times and a reasonable place. 
7.4 	At the next regular meeting of the local government that is at least 30 days after the public 
7.5 	hearing, the local government must vote on the question of whether to authorize the local 
7.6 	government or local government agency to use eminent domain to acquire the property.
7.7 		Subd. 3.Resolution.  If the taking is for the mitigation of a blighted area, 
7.8 	remediation of an environmentally contaminated area, reducing abandoned property, or 
7.9 	removing a public nuisance, then the resolution of a local government or local government 
7.10 	agency authorizing the use of eminent domain must:
7.11 	(1) identify and describe the public costs and benefits that are known or expected 
7.12 	to result from the program or project for which the property interest is proposed to be 
7.13 	acquired; and
7.14 	(2) address how the acquisition of the property interest serves one or more identified 
7.15 	public uses or public purposes and why the acquisition of the property is needed to 
7.16 	accomplish those public uses or public purposes.

7.17 	Sec. 6. Minnesota Statutes 2004, section 117.055, is amended to read:
7.18 	117.055 PETITION AND NOTICE.
7.19 		Subdivision 1.Petition. In all cases a petition, describing the desired land, stating by 
7.20 	whom and for what purposes it is proposed to be taken, and giving the names of all persons 
7.21 	appearing of record or known to the petitioner to be the owners thereof shall be presented 
7.22 	to the district court of the county in which the land is situated praying for the appointment 
7.23 	of commissioners to appraise the damages which may be occasioned by such taking. 
7.24 		Subd. 2.Notice. (a) Notice of the objects of the petition and of the time and place of 
7.25 	presenting the same shall be served at least 20 days before such time of presentation upon 
7.26 	all persons named in the petition as owners as defined in section  117.025, subdivision 3, 
7.27 	and upon all occupants of such land in the same manner as a summons in a civil action. 
7.28 	(b) The notice must state that: 
7.29 	(1) a party wishing to challenge the public use or public purpose, necessity, or 
7.30 	authority for a taking must appear at the court hearing and state the objection; and
7.31 	(2) a court order approving the public use or public purpose, necessity, and authority 
7.32 	for the taking is final unless an appeal is brought within 60 days after service of the 
7.33 	order on the party.
7.34 	(c) If any such owner be not a resident of the state, or the owner's place of residence 
7.35 	be unknown to the petitioner, upon the filing of an affidavit of the petitioner or the 
8.1 	petitioner's agent or attorney, stating that the petitioner believes that such owner is not 
8.2 	a resident of the state, and that the petitioner has mailed a copy of the notice to the 
8.3 	owner at the owner's place of residence, or that after diligent inquiry the owner's place 
8.4 	of residence cannot be ascertained by the affiant, then service may be made upon such 
8.5 	owner by three weeks' published notice. If the state be an owner, the notice shall be 
8.6 	served upon the attorney general. Any owner not served as herein provided shall not be 
8.7 	bound by such proceeding except upon voluntarily appearing therein. Any owner shall 
8.8 	be furnished a right-of-way map or plat of all that part of land to be taken upon written 
8.9 	demand, provided that the petitioner shall have ten days from the receipt of the demand 
8.10 	within which to furnish the same. Any plans or profiles which the petitioner has shall be 
8.11 	made available to the owner for inspection. 

8.12 	Sec. 7. Minnesota Statutes 2004, section 117.075, subdivision 1, is amended to read:
8.13 		Subdivision 1.Hearing on taking; evidentiary standard. (a) Upon proof being 
8.14 	filed of the service of such notice, the court, at the time and place therein fixed or to which 
8.15 	the hearing may be adjourned, shall hear all competent evidence offered for or against the 
8.16 	granting of the petition, regulating the order of proof as it may deem best.
8.17 	(b) If the taking is for the mitigation of a blighted area, remediation of an 
8.18 	environmentally contaminated area, reducing abandoned property, or removing a 
8.19 	public nuisance, then, notwithstanding any other provision of general or special law, a 
8.20 	condemning authority must show the district court by preponderance of the evidence that 
8.21 	the taking is necessary and for the designated public use.
8.22 	(c) A court order approving the public use or public purpose, necessity, and authority 
8.23 	for the taking is final unless an appeal is brought within 60 days after service of the 
8.24 	order on the party.

8.25 	Sec. 8. Minnesota Statutes 2004, section 117.075, is amended by adding a subdivision 
8.26 	to read:
8.27 		Subd. 1b.Attorney fees. If the court determines that a taking is not for a public use 
8.28 	or public purpose or is unlawful, the court shall award the owner reasonable attorney fees 
8.29 	and other related expenses, fees, and costs.

8.30 	Sec. 9. Minnesota Statutes 2004, section 117.085, is amended to read:
8.31 	117.085 COMMISSIONERS, POWERS, DUTIES.
8.32 	The commissioners, having been duly sworn and qualified according to law, shall 
8.33 	meet as directed by the order of appointment and hear the allegations and proofs of all 
9.1 	persons interested touching the matters to them committed. They may adjourn from time 
9.2 	to time and from place to place within the county, giving oral notice to those present of 
9.3 	the time and place of their next meeting. All testimony taken by them shall be given 
9.4 	publicly, under oath, and in their presence. They shall view the premises, and any of 
9.5 	them may subpoena witnesses, which shall be served as subpoenas in civil actions are 
9.6 	served, and at the cost of the parties applying therefor. If deemed necessary, they may 
9.7 	require the petitioner or owner to furnish for their use maps, plats, and other information 
9.8 	which the petitioner or owner may have showing the nature, character, and extent of the 
9.9 	proposed undertaking and the situation of lands desired therefor. In proper cases they may 
9.10 	reserve to the owner a right-of-way or other privilege in or over the land taken, or attach 
9.11 	reasonable conditions to such taking in addition to the damages given or they may make 
9.12 	an alternative award, conditioned upon the granting or withholding of the right specified. 
9.13 	Without unreasonable delay they shall make a separate assessment and award of the 
9.14 	damages which in their judgment will result to each of the owners of the land by reason 
9.15 	of such taking and report the same to the court. The commissioners shall not reduce the 
9.16 	amount of the damages awarded because the land being taken is, at the time of the taking, 
9.17 	valued under section  273.111, designated as an agricultural preserve under chapter 473H. 
9.18 	The commissioners, in all such proceedings, may in their discretion allow and show 
9.19 	separately in addition to the award of damages, reasonable appraisal fees not to exceed a 
9.20 	total of $500 $1,500 for single family and two-family residential property, agricultural 
9.21 	property, and minimum damage acquisitions and $5,000 for other types of property. Upon 
9.22 	request of an owner the commissioners shall show in their report the amount of the award 
9.23 	of damages which is to reimburse the owner and tenant or lessee for the value of the land 
9.24 	taken, and the amount of the award of damages, if any, which is to reimburse the owner 
9.25 	and tenant or lessee for damages to the remainder involved, whether or not described in 
9.26 	the petition. The amounts awarded to each person shall also be shown separately. The 
9.27 	commissioners shall, if requested by any party, make an express finding of the estimated 
9.28 	cost of removal and remedial actions that will be necessary on the taken property because 
9.29 	of existing environmental contamination. 

9.30 	Sec. 10. [117.184] COMPENSATION FOR REMOVAL OF LEGAL 
9.31 	NONCONFORMING USE.
9.32 	Notwithstanding any law to the contrary, an ordinance or regulation of a political 
9.33 	subdivision of the state or local zoning authority that requires the removal of a legal 
9.34 	nonconforming use as a condition or prerequisite for the issuance of a permit, license, or 
9.35 	other approval for any use, structure, development, or activity constitutes a taking and 
10.1 	is prohibited without the payment of just compensation. This section does not apply if 
10.2 	the permit, license, or other approval is requested for the construction of a building or 
10.3 	structure that cannot be built without physically moving the nonconforming use.

10.4 	Sec. 11. [117.186] COMPENSATION FOR LOSS OF GOING CONCERN.
10.5 		Subdivision 1.Definitions. For purposes of this section:
10.6 	(1) "going concern" means the benefits that accrue to a business or trade as a result 
10.7 	of its location, reputation for dependability, skill or quality, customer base, good will, or 
10.8 	any other circumstances resulting in the probable retention of old or acquisition of new 
10.9 	patronage; and 
10.10 	(2) "owner" has the meaning given in section 117.025 and includes a lessee who 
10.11 	operates a business on real property that is the subject of an eminent domain proceeding.
10.12 		Subd. 2.Compensation. In all eminent domain proceedings, the owner of a business 
10.13 	or trade must be compensated for the loss of a going concern if the owner establishes that:
10.14 	(1) the business or trade has been destroyed as a result of the taking;
10.15 	(2) the loss cannot be reasonably prevented by relocating the business or trade in the 
10.16 	same or a similar and reasonably suitable location as the property that was taken, or by 
10.17 	taking steps and adopting procedures that a reasonably prudent person of a similar age 
10.18 	and under similar conditions as the owner would take and adopt in preserving the going 
10.19 	concern of the business or trade; and
10.20 	(3) compensation for the loss of going concern will not be duplicated in the 
10.21 	compensation otherwise awarded to the owner of the business or trade.
10.22 		Subd. 3.Procedure. In all cases where an owner will seek compensation for loss 
10.23 	of a going concern, the damages, if any, shall in the first instance be determined and 
10.24 	reported by the commissioners under section 117.105 as part of the compensation due to 
10.25 	the owner. The owner shall notify the condemning authority of the owner's intent to claim 
10.26 	compensation for loss of going concern within 60 days of the first hearing before the court, 
10.27 	as provided in section 117.075. The commissioner's decision regarding any award for loss 
10.28 	of going concern may be appealed by any party, in accordance with section 117.145. 

10.29 	Sec. 12. [117.187] MINIMUM COMPENSATION.
10.30 	When an owner must relocate, the amount of damages payable, at a minimum, must 
10.31 	be sufficient for an owner to purchase  in the community and not less than the condemning 
10.32 	authority's payment or deposit under section 117.042, to the extent that the damages will 
10.33 	not be duplicated in the compensation otherwise awarded to the owner of the property. 

11.1 	Sec. 13. [117.188] LIMITATIONS.
11.2 	The condemning authority must not require the owner to accept as part of the 
11.3 	compensation due any substitute or replacement property.  The condemning authority must 
11.4 	not require the owner to accept the return of property acquired or any portion thereof.

11.5 	Sec. 14. [117.189] PUBLIC SERVICE CORPORATION EXCEPTIONS.
11.6 	Sections 117.036; 117.055, subdivision 2, paragraph (b); 117.075, subdivision 1b; 
11.7 	117.186; 117.187; 117.188; and 117.52, subdivision 1a, do not apply to public service 
11.8 	corporations. For purposes of an award of appraisal fees under section 117.085, the fees 
11.9 	awarded may not exceed $500 for all types of property.

11.10 	Sec. 15. [117.196] ATTORNEY FEES.
11.11 		Subdivision 1.Judgment or award in excess of last written offer. If the final 
11.12 	judgment or award of damages is at least 20 percent greater than the last written offer of 
11.13 	compensation made by the condemning authority before the filing of the petition, the court 
11.14 	may award the owner reasonable attorney fees and costs in addition to other compensation 
11.15 	and fees authorized by this chapter.
11.16 		Subd. 2.Increase in market value. If three months or more pass from the date of 
11.17 	the last written offer of compensation and the filing of the petition, for the purposes of 
11.18 	determining whether the final judgment or award for damages is more than 20 percent 
11.19 	greater than the last written offer, the value of the offer must be adjusted on a pro rata basis 
11.20 	for the annual rate of increase in the estimated market value of existing property in the 
11.21 	subject property's use class within the same city or township. The annual rate of increase 
11.22 	shall be derived by comparing the most recent abstract filed with the commissioner of 
11.23 	revenue under section 270C.89, subdivision 1, with the abstract of the prior year.

11.24 	Sec. 16. [117.226] RIGHT OF FIRST REFUSAL.
11.25 	(a) Notwithstanding section 161.23, if the governing body of the condemning 
11.26 	authority determines that publicly owned property acquired under this chapter has not 
11.27 	been used and is no longer needed for a public use, the authority must offer to sell the 
11.28 	property to the owner from whom it was acquired, if the former owner can be located, 
11.29 	at the original price determined by the condemnation process or the current fair market 
11.30 	value of the property, whichever is lower.
11.31 	(b) If the former owner cannot be located or declines to repurchase the property, 
11.32 	the condemning authority shall prepare a certificate attesting to the same and record the 
12.1 	certificate in the office of the county recorder or county registrar of titles, as appropriate, 
12.2 	to evidence the termination of the right of first refusal.

12.3 	Sec. 17. Minnesota Statutes 2004, section 117.51, is amended to read:
12.4 	117.51 COOPERATION WITH FEDERAL AUTHORITIES.
12.5 	In all acquisitions undertaken by any acquiring authority and in all voluntary 
12.6 	rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof, 
12.7 	the acquiring authority shall cooperate to the fullest extent with federal departments and 
12.8 	agencies, and it shall take all necessary action in order to insure, to the maximum extent 
12.9 	possible, federal financial participation in any and all phases of acquisition, including the 
12.10 	provision of relocation assistance, services, payments and benefits to displaced persons. 
12.11 	An acquiring authority may consider reimbursing up to $50,000 in reestablishment 
12.12 	expenses of a displaced business.

12.13 	Sec. 18. Minnesota Statutes 2004, section 117.52, subdivision 1, is amended to read:
12.14 		Subdivision 1.Lack of federal funding. In all acquisitions undertaken by any 
12.15 	acquiring authority and in all voluntary rehabilitation carried out by a person pursuant 
12.16 	to acquisition or as a consequence thereof, in which, due to the lack of federal financial 
12.17 	participation, relocation assistance, services, payments and benefits under the Uniform 
12.18 	Relocation Assistance and Real Property Acquisition Policies Act of 1970, United States 
12.19 	Code, title 42, sections 4601 to 4655, as amended by the Surface Transportation and 
12.20 	Uniform Relocation Assistance Act of 1987, Statutes at Large, volume 101, pages 246 
12.21 	to 256 (1987), are not available, the acquiring authority, as a cost of acquisition, shall 
12.22 	provide all relocation assistance, services, payments and benefits required by the Uniform 
12.23 	Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended by 
12.24 	the Surface Transportation and Uniform Relocation Assistance Act of 1987, and those 
12.25 	regulations adopted pursuant thereto, and either (1) in effect as of July 1, 1988 January 1, 
12.26 	2006, or (2) becoming effective after July 1, 1988 January 1, 2006, following a public 
12.27 	hearing and comment. Comments received by an acquiring authority within 30 days after 
12.28 	the public hearing must be reviewed and a written response provided to the individual or 
12.29 	organization who initiated the comment. The response and comments may be addressed in 
12.30 	another public hearing by the acquiring authority before approval.

12.31 	Sec. 19. Minnesota Statutes 2004, section 117.52, is amended by adding a subdivision 
12.32 	to read:
13.1 		Subd. 1a.Reestablishment costs limit. For purposes of relocation benefits paid by 
13.2 	the acquiring authority in accordance with this section, the provisions of Code of Federal 
13.3 	Regulations, title 49, section 24.304, with respect to reimbursement of reestablishment 
13.4 	expenses for nonresidential moves are applicable, except that the acquiring authority shall 
13.5 	reimburse the displaced business for expenses actually incurred up to a maximum of 
13.6 	$50,000.

13.7 	Sec. 20. Minnesota Statutes 2004, section 163.12, subdivision 1a, is amended to read:
13.8 		Subd. 1a.Petition, notice, and access to information. (a) Upon passage of the 
13.9 	resolution specified in section  163.11, subdivision 2, a petition must be presented to the 
13.10 	district court of the county in which the land is located. The petition must describe each 
13.11 	tract of land through which the highway passes, state the purposes for which the land is 
13.12 	proposed to be taken, and list the names of all persons appearing of record or known to 
13.13 	the county to be the landowners. 
13.14 	(b) Notice of the objects of the petition and of the time and place of presenting the 
13.15 	notice must be served, together with a copy of the resolution, upon each occupant of 
13.16 	each tract of land through which the highway passes at least 20 days before the hearing 
13.17 	under subdivision 1b. If an owner is not a resident of the state, or the owner's place of 
13.18 	residence is unknown to the county, service may be made by three weeks' published 
13.19 	notice following the filing of an affidavit on behalf of the county by the county's agent or 
13.20 	attorney stating that the county:
13.21 	(1) believes that the owner is not a resident of the state; and
13.22 	(2) has either mailed a copy of the notice to the owner at the owner's last known 
13.23 	residence address or, after diligent inquiry, the owner's place of residence cannot be 
13.24 	ascertained by the county.
13.25 	If the state is an owner, the notice must be served upon the attorney general. An owner 
13.26 	not served as provided in this subdivision is not bound by the proceeding, except if the 
13.27 	owner voluntarily appears in the proceeding.
13.28 	(c) Within ten days of an owner's demand, the owner must be furnished a 
13.29 	right-of-way map or plat of all that part of the owner's land to be taken. Any applicable 
13.30 	plans or profiles that the county possesses must be made available to the owner for 
13.31 	inspection.
13.32 	(d) The notice must state that: 
13.33 	(1) a party wishing to challenge the public use or public purpose, necessity, or 
13.34 	authority for the taking must appear at the court hearing and state the objection; and
14.1 	(2) a court order approving the public use or public purpose, necessity, and authority 
14.2 	for the taking is final unless an appeal is brought within 60 days after service of the 
14.3 	order on the party.

14.4 	Sec. 21. Minnesota Statutes 2004, section 163.12, subdivision 1b, is amended to read:
14.5 		Subd. 1b.Finding of necessity. When proof of service of the notice required in 
14.6 	subdivision 1a is filed with the court, the court shall hear all competent evidence offered 
14.7 	for or against granting the petition at the time and place fixed in the notice or otherwise set 
14.8 	by the court. On finding that the proposed taking is necessary and authorized by law the 
14.9 	court shall order the proceedings to commence pursuant to the remaining provisions of 
14.10 	this section. The court order finding the taking necessary and authorized by law is a final 
14.11 	order and must be appealed within 60 days from its service on the party.

14.12 	Sec. 22. REVISOR'S INSTRUCTION.
 14.13 	The revisor shall change the phrase "right of eminent domain" where found in 
14.14 	Minnesota Statutes and Minnesota Rules to "power of eminent domain."

14.15 	Sec. 23. EFFECTIVE DATE.
 14.16 	This act is effective the day following final enactment and applies to condemnation 
14.17 	proceedings for which service of notice of the petition under Minnesota Statutes, section 
14.18 	117.055, is made on or after March 1, 2006.