1.1                          A bill for an act 
  1.2             relating to private property; providing for the 
  1.3             Private Property Protection Act; proposing coding for 
  1.4             new law as Minnesota Statutes, chapter 516. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [516.01] [CITATION.] 
  1.7      This act is the Private Property Protection Act. 
  1.8      Sec. 2.  [516.02] [PRIVATE PROPERTY PROTECTION POLICY.] 
  1.9      (a) The legislature declares that: 
  1.10     (1) it is the policy of the state that when state and local 
  1.11  regulatory programs reduce the market value of private property 
  1.12  and do not, through their implementation, abate a public 
  1.13  nuisance affecting the public health, safety, morals, or general 
  1.14  welfare, it is fair and appropriate that the state or the 
  1.15  locality compensate the property owner for the loss in market 
  1.16  value of the property caused by the implementation of the 
  1.17  regulatory program; and 
  1.18     (2) it is the policy of the state that fair and appropriate 
  1.19  compensation should be provided to property owners in cases 
  1.20  involving regulatory programs which abate a public nuisance when 
  1.21  the property owner neither contributed to the public nuisance 
  1.22  nor acquired the property knowing of the public nuisance nor 
  1.23  acquired the property in circumstances where the property owner 
  1.24  should have known about the nuisance based upon prevailing 
  1.25  community standards. 
  2.1      (b) To address these public policy concerns, a fair and 
  2.2   equitable compensation system is established. 
  2.3      Sec. 3.  [516.03] [INVERSE CONDEMNATION.] 
  2.4      Subdivision 1.  [REGULATORY TAKINGS.] Whenever 
  2.5   implementation by the state or any of its political subdivisions 
  2.6   of any regulatory program operates to reduce the fair market 
  2.7   value of real property for the uses permitted at the time the 
  2.8   owner acquired the title, the property has been taken for the 
  2.9   use of the public.  The regulatory programs include, but are not 
  2.10  limited to, land use planning or zoning programs. 
  2.11     Subd. 2.  [COMPENSATION REQUIRED.] The owner or user may 
  2.12  require condemnation by, and just compensation from, the 
  2.13  governmental unit imposing the regulation resulting in decreased 
  2.14  value, or to receive compensation for the reduction in value 
  2.15  caused by government action, and in either case to have the 
  2.16  compensation determined by a jury.  When more than one 
  2.17  governmental unit is involved, the court shall determine the 
  2.18  proportion each unit is required to contribute to compensation. 
  2.19     Subd. 3.  [FAIR MARKET VALUE.] The compensation must be for 
  2.20  the full value of the interest taken or for the full amount of 
  2.21  decrease in fair market value. 
  2.22     Subd. 4.  [CONDITIONAL WAIVERS PROHIBITED.] (a) 
  2.23  Governmental units subject to this act cannot make waiver of the 
  2.24  provisions of this act a condition for approval of the use of 
  2.25  real property or the issuance of any permit or other entitlement.
  2.26     (b) Plaintiffs may accept an approval of use, permit, or 
  2.27  other entitlement granted by the governmental unit without 
  2.28  compromising their rights under this act if: 
  2.29     (1) a written reservation of rights is made at the time of 
  2.30  acceptance of the authorization, permit, or other entitlement; 
  2.31  or 
  2.32     (2) by oral statement made before the governmental unit 
  2.33  granting the authorization, permit, or other entitlement at a 
  2.34  public meeting at which the governmental unit renders its 
  2.35  decision. 
  2.36     (c) The owner or user may make the reservation in either or 
  3.1   both forms. 
  3.2      Sec. 4.  [516.04] [EXCEPTIONS.] 
  3.3      Compensation is not required under this act if the 
  3.4   regulatory program is an exercise of the police power to prevent 
  3.5   uses noxious in fact or demonstrable harm to the health and 
  3.6   safety of the public.  A use is a noxious use if, and only if, 
  3.7   it amounts to a public nuisance in fact.  Determination by the 
  3.8   governmental unit involved that a use is a noxious use or poses 
  3.9   a demonstrable harm to public health and safety is binding upon 
  3.10  a court.  Review of the governmental unit determination is de 
  3.11  novo. 
  3.12     Sec. 5.  [516.05] [STATUTE OF LIMITATION.] 
  3.13     Subdivision 1.  [INJURIES TO REAL PROPERTY.] The statute of 
  3.14  limitations for actions brought under this section is the 
  3.15  statute of limitations for ordinary actions brought for injuries 
  3.16  to real property.  The statute of limitations begins to run upon 
  3.17  the final administrative decision implementing the regulatory 
  3.18  program affecting the plaintiffs' property.  The statute of 
  3.19  limitations is for any claim that may be brought under any law. 
  3.20     Subd. 2.  [IMPLEMENTATION DEFINED.] A program is 
  3.21  implemented with respect to an owner's or user's property when 
  3.22  actually applied to that property. 
  3.23     Subd. 3.  [RETROACTIVE APPLICATION.] The act applies not 
  3.24  only to new regulatory programs but also to the application of 
  3.25  regulatory programs in effect at the time of this act, 
  3.26  including, but not limited to, land use law or zoning laws and 
  3.27  regulations to the owner's property. 
  3.28     Sec. 6.  [516.06] [REGULATORY ROLLBACK.] 
  3.29     Subdivision 1.  [CONDITIONAL RELAXATION AUTHORIZED.] If the 
  3.30  governmental unit of which inverse condemnation is successfully 
  3.31  required under section 3 is unwilling or unable to pay the costs 
  3.32  awarded, it may instead relax the land use planning, zoning, or 
  3.33  other regulatory program as it affects the plaintiff's land and 
  3.34  all similarly situated land in the jurisdiction in which the 
  3.35  regulatory program is in effect to the level of regulation in 
  3.36  place as of the time the owner acquired title.  The governmental 
  4.1   unit is still liable to the plaintiff landowner or user for the 
  4.2   reasonable and necessary costs of the inverse condemnation 
  4.3   action plus any actual and demonstrable economic losses caused 
  4.4   the plaintiff by regulation during the period in which it was in 
  4.5   effect. 
  4.6      Subd. 2.  [CONSTITUTIONAL REQUIREMENTS.] This section does 
  4.7   not affect any remedy that is constitutionally required. 
  4.8      Subd. 3.  [RELAXATION PROCEDURE.] Notwithstanding other 
  4.9   law, the governmental unit subject to an award of compensation 
  4.10  under this act may elect to relax the land use planning, zoning, 
  4.11  of other regulatory program without further public hearings, 
  4.12  proceedings, or environmental review required.  If the 
  4.13  governmental unit elects to so relax the affected regulatory 
  4.14  program, the previously effective program is automatically in 
  4.15  effect. 
  4.16     Subd. 4.  [CONTINUANCE OF ENTITLEMENT.] A permit, 
  4.17  authorization, or other entitlement granted under a program 
  4.18  rolled back under this section continues to be valid, 
  4.19  notwithstanding a law in the program reinstated by the rollback. 
  4.20     Sec. 7.  [516.07] [LEGAL CHALLENGES.] 
  4.21     This act does not preclude property owners from bringing 
  4.22  legal challenges to regulatory programs affected by this act in 
  4.23  instances in which the regulation caused dimunition in value of 
  4.24  the property for the uses permitted at the time the owner 
  4.25  acquired title, nor does it preclude property owners from 
  4.26  bringing legal challenges to regulatory programs affected by 
  4.27  this act based on other law. 
  4.28     Sec. 8.  [516.08] [TAX ADJUSTMENT.] 
  4.29     Whenever, after July 1, 1998, the state or any of its 
  4.30  political subdivisions imposes, changes, or implements any land 
  4.31  use planning, zoning, or other regulatory program in such a way 
  4.32  as to reduce the previous fair market value of a taxpayer's 
  4.33  property, the county auditor shall, on or before the next April 
  4.34  1, adjust the taxpayer's valuation downward by an amount equal 
  4.35  to the difference between the fair market value of the property 
  4.36  under the new regulatory program and the previous fair market 
  5.1   value.