SF 2175

2nd Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 05/12/2014 09:00 a.m.

1.1A bill for an act 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. new text begin [16B.297] ACQUISITION OF REAL PROPERTY. new text end 1.7     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 new text end 1.8 new text begin agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the new text end 1.9 new text begin Minnesota State Colleges and Universities. new text end 1.10     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 new text end 1.11 new text begin an interest in real property with public money, the procedure in this section applies. The new text end 1.12 new text begin agency must first prepare a fact sheet providing a legal description of the real property to new text end 1.13 new text begin be acquired and the legal authority for its acquisition. The agency must obtain an appraisal new text end 1.14 new text begin of the real property by a person licensed under chapter 82B as an appraiser for the type new text end 1.15 new text begin of real property being appraised and the appraisal must be done in accordance with the new text end 1.16 new text begin requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly new text end 1.17 new text begin in any of the real property to be appraised. The agency may pay less for the property than new text end 1.18 new text begin the appraised value but must not agree to pay more than ten percent above the appraised new text end 1.19 new text begin value. The appraised value does not include closing, relocation, or other costs authorized new text end 1.20 new text begin by law. The agency must not pay for any of the seller's administrative costs. The seller's new text end 1.21 new text begin appraisal must not include any administrative costs paid by the seller to acquire the new text end 1.22 new text begin property. If the real property is appraised at less than $100,000 by the agency and the seller, new text end 1.23 new text begin the agency may pay more than 110 percent of the agency's appraised value but no more than new text end 1.24 new text begin the seller's appraised value. New appraisals may be made at the discretion of the agency. new text end