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HF 106

as introduced - 89th Legislature (2015 - 2016) Posted on 06/21/2017 11:01am

KEY: stricken = removed, old language. underscored = added, new language.

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Current Version - as introduced

A bill for an act
relating to eminent domain; establishing a "buy the farm" option for real property
owners whose property is taken for intercity high-speed rail use; proposing
coding for new law in Minnesota Statutes, chapter 218.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

[218.77] INTERCITY HIGH-SPEED RAIL; "BUY THE FARM."

Subdivision 1.

Application.

This section applies to acquisition of real property, or
an interest in real property, for intercity high-speed rail use following the procedures
in chapter 117.

Subd. 2.

Not a substantive grant of the power of eminent domain.

This section
does not grant any entity the power of eminent domain. Any authority to use eminent
domain must be granted in other law.

Subd. 3.

Owner defined.

For the purposes of this section, "owner" means the fee
owner, or when applicable, the fee owner with the written consent of the contract for deed
vendee, or the contract for deed vendee with the written consent of the fee owner.

Subd. 4.

Contiguous land.

(a) When private real property that is an agricultural or
nonagricultural homestead, nonhomestead agricultural land, rental residential property,
and both commercial and noncommercial seasonal residential recreational property,
as those terms are defined in section 273.13, is proposed to be acquired for intercity
high-speed rail purposes, the owner shall have the option to require the acquiring entity to
acquire a fee interest in any amount of contiguous, commercially viable land which the
owner wholly owns in undivided fee and elects in writing to transfer to the acquiring entity
within 60 days after receipt of the notice of the objects of the petition filed pursuant to
section 117.055. Commercial viability shall be determined without regard to the presence
of the intercity high-speed rail. Within 60 days after receipt by the acquiring entity of
an owner's election to exercise this option, the acquiring entity shall provide written
notice to the owner of any objection the acquiring entity has to the owner's election, and
if no objection is made within that time, any objection shall be deemed waived. Within
120 days of the service of an objection by the acquiring entity, the district court having
jurisdiction over the eminent domain proceeding shall hold a hearing to determine whether
the acquiring entity's objection is upheld or rejected. The acquiring entity has the burden
of proof to prove by a preponderance of the evidence that the property elected by the
owner is not commercially viable. The owner shall have only one such option and may not
expand or otherwise modify an election without the consent of the acquiring entity. The
required acquisition of land pursuant to this subdivision shall be considered an acquisition
for a public purpose for purposes of chapter 117. The acquiring entity shall divest itself
completely of all such lands used for farming or capable of being used for farming not
later than the time it can receive the market value paid at the time of acquisition of lands
less any diminution in value by reason of the presence of the intercity high-speed rail.
Upon the owner's election made under this subdivision, the easement interest over and
adjacent to the lands designated by the owner to be acquired in fee, sought to be acquired
shall automatically be converted into a fee taking.

(b) All rights and protections provided to an owner under chapter 117 apply to
acquisition of land or an interest in land under this section.

(c) Within 120 days of an owner's election under this subdivision to require the
acquiring entity to acquire land, or 120 days after a district court decision overruling an
acquiring entity objection to an election made pursuant to paragraph (a), the acquiring
entity must make a written offer to acquire that land and amend its condemnation petition
to include the additional land.

Subd. 5.

Payment.

When the amount the owner shall receive for the property
acquired for intercity high-speed rail is finally determined, the owner entitled to payment
may elect to have the amount paid in not more than ten annual installments, with interest
on the deferred installments, at the rate of eight percent per annum on the unpaid balance,
by submitting a written request to the acquiring entity before any payment has been made.
After the first installment is paid, the acquiring entity may make its final certificate, as
provided by law, in the same manner as though the entire amount had been paid.

Subd. 6.

Reversion of interests after five years.

Notwithstanding any law to the
contrary, if an easement acquired is not used for high-speed rail purposes for a period
of five years after acquisition, all easement interests revert to the owner, who shall be
determined as of the date of the reversion.

EFFECTIVE DATE.

This section is effective August 1, 2015, and applies to
acquisitions commenced on or after that date.

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