HF 923

as introduced - 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; changing and removing highway routes;
making clarifying changes; amending Minnesota Statutes
2004, sections 13.44, subdivision 3; 117.036; 161.115,
subdivision 74; 161.44, by adding a subdivision;
161.442; 515B.1-107; 515B.3-102; 515B.3-112; repealing
Minnesota Statutes 2004, section 161.115, subdivisions
155, 199.

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

Section 1.

Minnesota Statutes 2004, section 13.44,
subdivision 3, is amended to read:

Subd. 3.

Real property; appraisal data.

(a) [
CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or
appraised values of individual parcels of real property deleted text begin which
deleted text end new text begin that new text end are made by personnel of the state deleted text begin , its agencies and
departments, deleted text end or a political subdivision or by independent
appraisers acting for the state deleted text begin , its agencies and departments,
deleted text end or a political subdivision for the purpose of selling or
acquiring land through purchase or condemnation are classified
as confidential data on individuals or protected nonpublic data.

(b) [PRIVATE OR NONPUBLIC DATA.] new text begin Appraised values of
individual parcels of real property that are made by appraisers
working for fee owners or contract purchasers who have received
an offer to purchase their property from the state or a
political subdivision are classified as private data on
individuals or nonpublic data.
new text end

new text begin (c) new text end [PUBLIC DATA.] The data made confidential or protected
nonpublic deleted text begin by the provisions of deleted text end new text begin under new text end paragraph (a) deleted text begin shall deleted text end new text begin or made
private or nonpublic under paragraph (b) new text end become public upon the
occurrence of any of the following:

(1) deleted text begin the negotiating parties exchange appraisals;
deleted text end

deleted text begin (2) deleted text end the data are submitted to a court new text begin - new text end appointed
condemnation commissioner;

deleted text begin (3) deleted text end new text begin (2) new text end the data are presented in court in condemnation
proceedings; new text begin or
new text end

deleted text begin (4) deleted text end new text begin (3) new text end the negotiating parties enter into an agreement for
the purchase and sale of the property deleted text begin ; or
deleted text end

deleted text begin (5) the data are submitted to the owner under section
117.036 deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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 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) 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 new text end .

new text begin 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 up to $1,500 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 [CONDEMNATION COMMISSIONERS' HEARING.] 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. 3.

Minnesota Statutes 2004, section 161.115,
subdivision 74, is amended to read:

Subd. 74.

Route no. 143.

Beginning at a point on Route
No. deleted text begin 10 deleted text end new text begin 210 new text end westerly of deleted text begin Pennock deleted text end new text begin Sunburg new text end , thence extending in a
northerly direction to a point at or near Terrace deleted text begin ; deleted text end new text begin , new text end thence
continuing in a northerly direction to a point on Route No. 142
as herein established.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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. 5.

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

Sec. 6.

Minnesota Statutes 2004, section 515B.1-107, is
amended to read:

515B.1-107 EMINENT DOMAIN.

(a) If a unit is acquired by eminent domain, or if part of
a unit is acquired by eminent domain leaving the unit owner with
a remnant which may not practically or lawfully be used for any
material purpose permitted by the declaration, the award shall
compensate the unit owner and secured party in the unit as their
interests may appear, whether or not any common element interest
is acquired. Upon acquisition, unless the order or final
certificate otherwise provides, that unit's allocated interests
are automatically reallocated among the remaining units in
proportion to their respective allocated interests prior to the
taking, and the association shall promptly prepare, execute, and
record an amendment to the declaration reflecting the
allocations. Any remnant of a unit remaining after part of a
unit is taken under this subsection is thereafter a common
element.

(b) Except as provided in subsection (a), if part of a unit
is acquired by eminent domain, the award shall compensate the
unit owner and secured party for the reduction in value of the
unit and its interest in the common elements, whether or not any
common elements are acquired. Upon acquisition, unless the
order or final certificate otherwise provides, (i) that unit's
allocated interests are reduced in proportion to the reduction
in the size of the unit, or on any other basis specified in the
declaration and (ii) the portion of the allocated interests
divested from the partially acquired unit are automatically
reallocated to that unit and to the remaining units in
proportion to the respective allocated interests of those units
before the taking, with the partially acquired unit
participating in the reallocation on the basis of its reduced
allocated interests.

(c) If part of the common elements is acquired by eminent
domain, new text begin the association shall accept service of process on
behalf of all unit owners and new text end the portion of the award
attributable to the common elements taken shall be paid to the
association. Unless the declaration provides otherwise, any
portion of the award attributable to the acquisition of a
limited common element shall be equally divided among the owners
of the units to which that limited common element was allocated
at the time of acquisition and their secured parties, as their
interests may appear or as provided by the declaration.

(d) In any eminent domain proceeding the units shall be
treated as separate parcels of real estate for valuation
purposes, regardless of the number of units subject to the
proceeding.

(e) Any distribution to a unit owner from the proceeds of
an eminent domain award shall be subject to any limitations
imposed by the declaration or bylaws.

(f) The court order or final certificate containing the
final awards shall be recorded in every county in which any
portion of the common interest community is located.

Sec. 7.

Minnesota Statutes 2004, section 515B.3-102, is
amended to read:

515B.3-102 POWERS OF UNIT OWNERS' ASSOCIATION.

(a) Except as provided in subsection (b), and subject to
the provisions of the declaration or bylaws, the association
shall have the power to:

(1) adopt, amend and revoke rules and regulations not
inconsistent with the articles of incorporation, bylaws and
declaration, as follows: (i) regulating the use of the common
elements; (ii) regulating the use of the units, and conduct of
unit occupants, which may jeopardize the health, safety or
welfare of other occupants, which involves noise or other
disturbing activity, or which may damage the common elements or
other units; (iii) regulating or prohibiting animals; (iv)
regulating changes in the appearance of the common elements and
conduct which may damage the common interest community; (v)
regulating the exterior appearance of the common interest
community, including, for example, balconies and patios, window
treatments, and signs and other displays, regardless of whether
inside a unit; (vi) implementing the articles of incorporation,
declaration and bylaws, and exercising the powers granted by
this section; and (vii) otherwise facilitating the operation of
the common interest community;

(2) adopt and amend budgets for revenues, expenditures and
reserves, and levy and collect assessments for common expenses
from unit owners;

(3) hire and discharge managing agents and other employees,
agents, and independent contractors;

(4) institute, defend, or intervene in litigation or
administrative proceedings (i) in its own name on behalf of
itself or two or more unit owners on matters affecting the
common elements or other matters affecting the common interest
community or, (ii) with the consent of the owners of the
affected units on matters affecting only those units;

(5) make contracts and incur liabilities;

(6) regulate the use, maintenance, repair, replacement and
modification of the common elements and the units;

(7) cause improvements to be made as a part of the common
elements, and, in the case of a cooperative, the units;

(8) acquire, hold, encumber, and convey in its own name any
right, title, or interest to real estate or personal property,
but (i) common elements in a condominium or planned community
may be conveyed or subjected to a security interest only
pursuant to section 515B.3-112, or (ii) part of a cooperative
may be conveyed, or all or part of a cooperative may be
subjected to a security interest, only pursuant to section
515B.3-112;

(9) grant public utility new text begin and transportation new text end easements
through, over or under the common elements, and, subject to
approval by resolution of unit owners other than declarant or
its affiliates at a meeting duly called, grant other public or
private easements, leases and licenses through, over or under
the common elements;

(10) impose and receive any payments, fees, or charges for
the use, rental, or operation of the common elements, other than
limited common elements, and for services provided to unit
owners;

(11) impose charges for late payment of assessments and,
after notice and an opportunity to be heard, levy reasonable
fines for violations of the declaration, bylaws, and rules and
regulations of the association;

(12) impose reasonable charges for the review, preparation
and recordation of amendments to the declaration, resale
certificates required by section 515B.4-107, statements of
unpaid assessments, or furnishing copies of association records;

(13) provide for the indemnification of its officers and
directors, and maintain directors' and officers' liability
insurance;

(14) provide for reasonable procedures governing the
conduct of meetings and election of directors;

(15) exercise any other powers conferred by law, or by the
declaration, articles of incorporation or bylaws; and

(16) exercise any other powers necessary and proper for the
governance and operation of the association.

(b) Notwithstanding subsection (a) the declaration or
bylaws may not impose limitations on the power of the
association to deal with the declarant which are more
restrictive than the limitations imposed on the power of the
association to deal with other persons.

Sec. 8.

Minnesota Statutes 2004, section 515B.3-112, is
amended to read:

515B.3-112 CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS.

(a) In a condominium or planned community, unless the
declaration provides otherwise, portions of the common elements
may be conveyed or subjected to a security interest by the
association if persons entitled to cast at least 67 percent of
the votes in the association, including 67 percent of the votes
allocated to units not owned by a declarant, or any larger
percentage the declaration specifies, approve that action in
writing or at a meeting; but all unit owners of units to which
any limited common element is allocated must agree in order to
convey that limited common element or subject it to a security
interest. The declaration may specify a smaller percentage only
if all of the units are restricted to nonresidential use.

(b) In a cooperative, unless the declaration provides
otherwise, part of a cooperative may be conveyed, or all or a
part subjected to a security interest, by the association if
persons entitled to cast at least 67 percent of the votes in the
association, including 67 percent of the votes allocated to
units in which the declarant has no interest, or any larger
percentage the declaration specifies, approves that action in
writing or at a meeting. If fewer than all of the units or
limited common elements are to be conveyed or subjected to a
security interest, then all unit owners of those units, or the
units to which those limited common elements are allocated, must
agree in order to convey those units or limited common elements
or subject them to a security interest. The declaration may
specify a smaller percentage only if all of the units are
restricted to nonresidential use. Any purported conveyance or
other voluntary transfer of an entire cooperative is void,
unless made pursuant to section 515B.2-119.

(c) The association, on behalf of the unit owners, may
contract to convey or encumber an interest in the common
elements of a common interest community pursuant to this
subsection, subject to the required approval. After the
approval has been obtained, the association shall have a power
of attorney coupled with an interest to effect the conveyance or
encumbrance on behalf of all unit owners in the common interest
community, including the power to execute deeds, mortgages, or
other instruments of conveyance or security. The instrument
conveying or creating the interest in the common interest
community shall be recorded and shall include as exhibits (i) an
affidavit of the secretary of the association certifying that
the approval required by this section has been obtained and (ii)
a schedule of the names of all unit owners and units in the
common interest community as of the date of the approval.

(d) Except as provided in section 515B.3-102(a)(9), unless
made pursuant to this section, any purported conveyance,
encumbrance, or other voluntary transfer of common elements, or
of any part of a cooperative, is void.

(e) In the case of a conveyance involving a condominium, or
a cooperative in which the unit owners' interests are
characterized as real estate, the association shall record,
simultaneously with the recording of the instrument of
conveyance, an amended CIC plat showing the real estate
constituting the common interest community exclusive of the real
estate conveyed. In all common interest communities, upon
recording of the instrument of conveyance, the declaration, and
all rights and obligations arising therefrom, shall be deemed
released and terminated as to the real estate
conveyed. new text begin Conveyances to the state or a political subdivision
for transportation purposes are exempt from the requirements of
this paragraph.
new text end

(f) A conveyance or encumbrance of common elements, or of a
cooperative, pursuant to this section shall not deprive any unit
of its rights of support, reasonable access or utility services.

(g) Except as provided in subsection (a), or unless the
declaration otherwise provides, a conveyance or encumbrance of
common elements pursuant to this section does not affect the
priority or validity of preexisting encumbrances.

(h) Any proceeds of the conveyance or creation of a
security interest under this section are an asset of the
association.

(i) This section shall not apply to any conveyance or
encumbrance of any interest in a proprietary lease.

Sec. 9. new text begin REPEALERS; HIGHWAY CHANGES; EFFECTIVE DATES;
REVISOR INSTRUCTIONS.
new text end

new text begin Subdivision 1. new text end [LEGISLATIVE ROUTE NO. 224 REMOVED.] new text begin (a)
Minnesota Statutes 2004, section 161.115, subdivision 155, is
repealed effective the day after the commissioner of
transportation issues a notice of transfer transferring
jurisdiction of Legislative Route No. 224 to Becker County and
notifies the revisor of statutes under paragraph (b).
new text end

new text begin (b) The revisor of statutes shall delete the route
identified in paragraph (a) from Minnesota Statutes when the
commissioner of transportation sends notice to the revisor in
writing informing the revisor of the effective date and that the
conditions required to transfer the route are satisfied.
new text end

new text begin Subd. 2. new text end [LEGISLATIVE ROUTE NO. 268 REMOVED.] new text begin (a)
Minnesota Statutes 2004, section 161.115, subdivision 199, is
repealed effective the day after the commissioner of
transportation issues a notice of transfer transferring
jurisdiction of Legislative Route No. 268 to Pipestone County
and notifies the revisor of statutes under paragraph (b).
new text end

new text begin (b) The revisor of statutes shall delete the route
identified in paragraph (a) from Minnesota Statutes when the
commissioner of transportation sends notice to the revisor in
writing informing the revisor of the effective date and that the
conditions required to transfer the route are satisfied.
new text end