HF 923

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to transportation; modifying provisions relating to property transactions
of Department of Transportation; making clarifying changes; amending
Minnesota Statutes 2004, sections 117.036; 161.44, by adding a subdivision;
161.442.

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

Section 1.

Minnesota Statutes 2004, section 117.036, is amended to read:

117.036 APPRAISAL AND NEGOTIATION REQUIREMENTS
APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION
PURPOSES.

Subdivision 1.

Application.

This section applies to the acquisition of property
for public highways, streets, roads, alleys, airports, mass transit facilities, or for other
transportation facilities or purposes.

Subd. 2.

Appraisal.

(a) Before deleted text begin commencing an eminent domain proceeding under
this chapter deleted text end new text begin acquiring an interest in real property new text end , the acquiring authority must obtain at
least one appraisal for the property proposed to be acquired. In making the appraisal, the
appraiser must confer with one or more of the new text begin fee new text end owners new text begin or contract purchasers new text end of the
property, if reasonably possible. new text begin Notwithstanding section 13.44 or any other law to the
contrary, the acquiring authority must provide the fee owner or contract purchaser with a
copy of the appraisal new text end at least 20 days before presenting a petition under section 117.055,
deleted text begin the acquiring authority must provide the owner with a copy of the appraisal deleted text end and inform the
deleted text begin owner of the owner's deleted text end new text begin fee owner or contract purchaser of the new text end right to obtain an appraisal
under this section. new text begin Upon request, the acquiring authority must make available to the fee
owner or contract purchaser all appraisals of the property. new text end

(b) The new text begin fee new text end owner new text begin or contract purchaser new text end may obtain an appraisal by a qualified
appraiser of the property proposed to be acquired. The new text begin fee new text end owner new text begin or contract purchaser
new text end is entitled to reimbursement for the reasonable costs of the appraisal from the acquiring
authority up to a maximum of $1,500 deleted text begin within 30 days after the deleted text end new text begin for an appraisal of
residential, agricultural, or open land and up to a maximum of $5,000 for an appraisal of
commercial or industrial land if the fee new text end owner new text begin or contract purchaser:
new text end

new text begin (1) new text end submits to the acquiring authority new text begin a copy of the appraisal and new text end the information
necessary for reimbursement deleted text begin , provided that the owner does so deleted text end new text begin ;
new text end

new text begin (2) requests reimbursement new text end within deleted text begin 60 deleted text end new text begin 90 new text end days after deleted text begin the owner receives deleted text end new text begin receiving
new text end the appraisal from the authority under paragraph (a) deleted text begin . deleted text end new text begin and at least 30 days before a
condemnation commissioners' hearing; and
new text end

new text begin (3) ensures that the appraisal is conducted in accordance with the Uniform Standards
of Professional Appraisal Practice. The acquiring authority must pay the reimbursement to
the fee owner or contract purchaser within 30 days after receiving a copy of the appraisal
and the reimbursement information. Upon agreement between the acquiring authority
and either the fee owner or contract purchaser, the acquiring authority may pay the
reimbursement directly to the appraiser.
new text end

Subd. 3.

Negotiation.

In addition to the appraisal requirements under subdivision 2,
before commencing an eminent domain proceeding, the acquiring authority must make a
good faith attempt to negotiate personally with the new text begin fee new text end owner new text begin or contract purchaser new text end of the
property in order to acquire the property by direct purchase instead of the use of eminent
domain proceedings. In making this negotiation, the acquiring authority must consider
the appraisals in its possession new text begin , including any appraisal obtained and furnished by the fee
owner or contract purchaser if available, new text end and other information that may be relevant to a
determination of damages under this chapter.

new text begin Subd. 4. new text end

new text begin Condemnation commissioners' hearing. new text end

new text begin (a) Notwithstanding
section 13.44, an owner's appraisal may not be used or considered in a condemnation
commissioners' hearing conducted under section 117.085, nor may the owner's appraiser
testify, unless a copy of the owner's appraiser's written report is provided to the acquiring
authority at least five days before the hearing.
new text end

new text begin (b) Notwithstanding section 13.44, the acquiring authority's appraisal may not be
used or considered in a condemnation commissioners' hearing conducted under section
117.085, nor may the acquiring authority's appraiser testify, unless a copy of the acquiring
authority's appraiser's written report is provided to the owner or contract purchaser at
least five days before the hearing.
new text end

Sec. 2.

Minnesota Statutes 2004, section 161.44, is amended by adding a subdivision
to read:

new text begin Subd. 9a. new text end

new text begin Appropriation. new text end

new text begin (a) Proceeds from the sale or lease of real estate and
buildings under this section and sections 161.23 and 161.41 must be paid into the trunk
highway fund and are appropriated to the commissioner to pay:
new text end

new text begin (1) for the actual cost of selling or leasing the real estate or buildings;
new text end

new text begin (2) the fees required to be paid under this section and section 161.23; and
new text end

new text begin (3) for the actual cost of construction, reconstruction, or improvement of trunk
highways, including:
new text end

new text begin (i) consultant usage to support these activities;
new text end

new text begin (ii) payments to landowners for lands acquired for highway rights-of-way;
new text end

new text begin (iii) payments to lessees;
new text end

new text begin (iv) interest subsidies; and
new text end

new text begin (v) relocation expenses.
new text end

new text begin (b) Proceeds are available until expended.
new text end

Sec. 3.

Minnesota Statutes 2004, section 161.442, is amended to read:

161.442 RECONVEYANCE TO FORMER OWNER.

Notwithstanding sections 161.23, 161.41, 161.411, 161.43, 161.44, or any other
statute, the commissioner of transportation, with the consent of the owner, new text begin or for good
cause and with the consent of the court, new text end may transfer, sell, or convey real property
including fixtures, and interests in real property including easements, to the owner
from whom the property was acquired by the state for trunk highway purposes through
a pending eminent domain action. The transfer of title may be by stipulation, partial
dismissal, bill of sale, or conveyance. Any resulting change in the state's acquisition must
be explained in the final certificate for that action. This provision does not confer on a
landowner the right to compel a reconveyance without the consent of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end