1.1 	A bill for an act
1.2 	relating to state government; prohibiting state agencies from paying more than 
1.3 	ten percent over the appraised value to acquire real property; proposing coding 
1.4 	for new law in Minnesota Statutes, chapter 16B.
1.5 	BE 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 
1.8 	agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the 
1.9 	Minnesota State Colleges and Universities, but does not include the Department of 
1.10 	Transportation, the Department of Natural Resources, or the Board of Water and Soil 
1.11 	Resources.
1.12 		Subd. 2.Maximum price. When an agency is authorized to acquire real property or 
1.13 	an interest in real property valued in excess of $100,000 with public money, the procedure 
1.14 	in this section applies. The agency must first prepare a fact sheet providing a legal 
1.15 	description of the real property to be acquired and the legal authority for its acquisition. 
1.16 	The agency must obtain an appraisal of the real property by an appraiser who holds a 
1.17 	state appraiser license issued by the Department of Commerce. The appraisal must be 
1.18 	in conformity with the Uniform Standards of Professional Appraisal Practice of the 
1.19 	Appraisal Foundation. The appraiser shall not have an interest directly or indirectly in 
1.20 	any of the real property to be appraised. The agency may pay less for the property than 
1.21 	the appraised value but must not agree to pay more than ten percent above the appraised 
1.22 	value. New appraisals may be made at the discretion of the agency.