HF 923

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; modifying provisions 
  1.3             relating to property transactions of Department of 
  1.4             Transportation; changing and removing highway routes; 
  1.5             making clarifying changes; amending Minnesota Statutes 
  1.6             2004, sections 13.44, subdivision 3; 117.036; 161.115, 
  1.7             subdivision 74; 161.44, by adding a subdivision; 
  1.8             161.442; 515B.1-107; 515B.3-102; 515B.3-112; repealing 
  1.9             Minnesota Statutes 2004, section 161.115, subdivisions 
  1.10            155, 199. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2004, section 13.44, 
  1.13  subdivision 3, is amended to read: 
  1.14     Subd. 3.  [REAL PROPERTY; APPRAISAL DATA.] (a) [ 
  1.15  CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or 
  1.16  appraised values of individual parcels of real property which 
  1.17  that are made by personnel of the state, its agencies and 
  1.18  departments, or a political subdivision or by independent 
  1.19  appraisers acting for the state, its agencies and departments, 
  1.20  or a political subdivision for the purpose of selling or 
  1.21  acquiring land through purchase or condemnation are classified 
  1.22  as confidential data on individuals or protected nonpublic data. 
  1.23     (b) [PRIVATE OR NONPUBLIC DATA.] Appraised values of 
  1.24  individual parcels of real property that are made by appraisers 
  1.25  working for fee owners or contract purchasers who have received 
  1.26  an offer to purchase their property from the state or a 
  1.27  political subdivision are classified as private data on 
  1.28  individuals or nonpublic data. 
  2.1      (c) [PUBLIC DATA.] The data made confidential or protected 
  2.2   nonpublic by the provisions of under paragraph (a) shall or made 
  2.3   private or nonpublic under paragraph (b) become public upon the 
  2.4   occurrence of any of the following:  
  2.5      (1) the negotiating parties exchange appraisals; 
  2.6      (2) the data are submitted to a court-appointed 
  2.7   condemnation commissioner; 
  2.8      (3) (2) the data are presented in court in condemnation 
  2.9   proceedings; or 
  2.10     (4) (3) the negotiating parties enter into an agreement for 
  2.11  the purchase and sale of the property; or 
  2.12     (5) the data are submitted to the owner under section 
  2.13  117.036. 
  2.14     [EFFECTIVE DATE.] This section is effective the day 
  2.15  following final enactment. 
  2.16     Sec. 2.  Minnesota Statutes 2004, section 117.036, is 
  2.17  amended to read: 
  2.18     117.036 [APPRAISAL AND NEGOTIATION REQUIREMENTS APPLICABLE 
  2.19  TO ACQUISITION OF PROPERTY FOR TRANSPORTATION PURPOSES.] 
  2.20     Subdivision 1.  [APPLICATION.] This section applies to the 
  2.21  acquisition of property for public highways, streets, roads, 
  2.22  alleys, airports, mass transit facilities, or for other 
  2.23  transportation facilities or purposes. 
  2.24     Subd. 2.  [APPRAISAL.] (a) Before commencing an eminent 
  2.25  domain proceeding under this chapter, the acquiring authority 
  2.26  must obtain at least one appraisal for the property proposed to 
  2.27  be acquired.  In making the appraisal, the appraiser must confer 
  2.28  with one or more of the fee owners or contract purchasers of the 
  2.29  property, if reasonably possible.  Notwithstanding section 13.44 
  2.30  or any other law to the contrary, the acquiring authority must 
  2.31  provide the fee owner or contract purchaser with a copy of the 
  2.32  appraisal at least 20 days before presenting a petition under 
  2.33  section 117.055, the acquiring authority must provide the owner 
  2.34  with a copy of the appraisal and inform the owner of the owner's 
  2.35  fee owner or contract purchaser of the right to obtain an 
  2.36  appraisal under this section.  Upon request, the acquiring 
  3.1   authority must make available to the fee owner or contract 
  3.2   purchaser all appraisals of the property. 
  3.3      (b) The fee owner or contract purchaser may obtain an 
  3.4   appraisal by a qualified appraiser of the property proposed to 
  3.5   be acquired.  The fee owner or contract purchaser is entitled to 
  3.6   reimbursement for the reasonable costs of the appraisal from the 
  3.7   acquiring authority up to a maximum of $1,500 within 30 days 
  3.8   after the if the fee owner or contract purchaser: 
  3.9      (1) submits to the acquiring authority a copy of the 
  3.10  appraisal and the information necessary for reimbursement, 
  3.11  provided that the owner does so; 
  3.12     (2) requests reimbursement within 60 90 days after the 
  3.13  owner receives receiving the appraisal from the authority under 
  3.14  paragraph (a) and at least 30 days before a condemnation 
  3.15  commissioners' hearing; and 
  3.16     (3) ensures that the appraisal is conducted in accordance 
  3.17  with the Uniform Standards of Professional Appraisal Practice.  
  3.18  The acquiring authority must pay the reimbursement to the fee 
  3.19  owner or contract purchaser within 30 days after receiving a 
  3.20  copy of the appraisal and the reimbursement information.  Upon 
  3.21  agreement between the acquiring authority and either the fee 
  3.22  owner or contract purchaser, the acquiring authority may pay the 
  3.23  reimbursement up to $1,500 directly to the appraiser. 
  3.24     Subd. 3.  [NEGOTIATION.] In addition to the appraisal 
  3.25  requirements under subdivision 2, before commencing an eminent 
  3.26  domain proceeding, the acquiring authority must make a good 
  3.27  faith attempt to negotiate personally with the fee owner or 
  3.28  contract purchaser of the property in order to acquire the 
  3.29  property by direct purchase instead of the use of eminent domain 
  3.30  proceedings.  In making this negotiation, the acquiring 
  3.31  authority must consider the appraisals in its possession, 
  3.32  including any appraisal obtained and furnished by the fee owner 
  3.33  or contract purchaser if available, and other information that 
  3.34  may be relevant to a determination of damages under this chapter.
  3.35     Subd. 4.  [CONDEMNATION COMMISSIONERS' HEARING.] (a) 
  3.36  Notwithstanding section 13.44, an owner's appraisal may not be 
  4.1   used or considered in a condemnation commissioners' hearing 
  4.2   conducted under section 117.085, nor may the owner's appraiser 
  4.3   testify, unless a copy of the owner's appraiser's written report 
  4.4   is provided to the acquiring authority at least five days before 
  4.5   the hearing. 
  4.6      (b) Notwithstanding section 13.44, the acquiring 
  4.7   authority's appraisal may not be used or considered in a 
  4.8   condemnation commissioners' hearing conducted under section 
  4.9   117.085, nor may the acquiring authority's appraiser testify, 
  4.10  unless a copy of the acquiring authority's appraiser's written 
  4.11  report is provided to the owner or contract purchaser at least 
  4.12  five days before the hearing. 
  4.13     Sec. 3.  Minnesota Statutes 2004, section 161.115, 
  4.14  subdivision 74, is amended to read: 
  4.15     Subd. 74.  [ROUTE NO. 143.] Beginning at a point on Route 
  4.16  No. 10 210 westerly of Pennock Sunburg, thence extending in a 
  4.17  northerly direction to a point at or near Terrace;, thence 
  4.18  continuing in a northerly direction to a point on Route No. 142 
  4.19  as herein established. 
  4.20     [EFFECTIVE DATE.] This section is effective the day 
  4.21  following final enactment. 
  4.22     Sec. 4.  Minnesota Statutes 2004, section 161.44, is 
  4.23  amended by adding a subdivision to read: 
  4.24     Subd. 9a.  [APPROPRIATION.] (a) Proceeds from the sale or 
  4.25  lease of real estate and buildings under this section and 
  4.26  sections 161.23 and 161.41 must be paid into the trunk highway 
  4.27  fund and are appropriated to the commissioner to pay: 
  4.28     (1) for the actual cost of selling or leasing the real 
  4.29  estate or buildings; 
  4.30     (2) the fees required to be paid under this section and 
  4.31  section 161.23; and 
  4.32     (3) for the actual cost of construction, reconstruction, or 
  4.33  improvement of trunk highways, including:  
  4.34     (i) consultant usage to support these activities; 
  4.35     (ii) payments to landowners for lands acquired for highway 
  4.36  rights-of-way; 
  5.1      (iii) payments to lessees; 
  5.2      (iv) interest subsidies; and 
  5.3      (v) relocation expenses. 
  5.4      (b) Proceeds are available until expended. 
  5.5      Sec. 5.  Minnesota Statutes 2004, section 161.442, is 
  5.6   amended to read: 
  5.7      161.442 [RECONVEYANCE TO FORMER OWNER.] 
  5.8      Notwithstanding sections 161.23, 161.41, 161.411, 161.43, 
  5.9   161.44, or any other statute, the commissioner of 
  5.10  transportation, with the consent of the owner, or for good cause 
  5.11  and with the consent of the court, may transfer, sell, or convey 
  5.12  real property including fixtures, and interests in real property 
  5.13  including easements, to the owner from whom the property was 
  5.14  acquired by the state for trunk highway purposes through a 
  5.15  pending eminent domain action.  The transfer of title may be by 
  5.16  stipulation, partial dismissal, bill of sale, or conveyance.  
  5.17  Any resulting change in the state's acquisition must be 
  5.18  explained in the final certificate for that action.  This 
  5.19  provision does not confer on a landowner the right to compel a 
  5.20  reconveyance without the consent of the commissioner. 
  5.21     [EFFECTIVE DATE.] This section is effective the day 
  5.22  following final enactment. 
  5.23     Sec. 6.  Minnesota Statutes 2004, section 515B.1-107, is 
  5.24  amended to read: 
  5.25     515B.1-107 [EMINENT DOMAIN.] 
  5.26     (a) If a unit is acquired by eminent domain, or if part of 
  5.27  a unit is acquired by eminent domain leaving the unit owner with 
  5.28  a remnant which may not practically or lawfully be used for any 
  5.29  material purpose permitted by the declaration, the award shall 
  5.30  compensate the unit owner and secured party in the unit as their 
  5.31  interests may appear, whether or not any common element interest 
  5.32  is acquired.  Upon acquisition, unless the order or final 
  5.33  certificate otherwise provides, that unit's allocated interests 
  5.34  are automatically reallocated among the remaining units in 
  5.35  proportion to their respective allocated interests prior to the 
  5.36  taking, and the association shall promptly prepare, execute, and 
  6.1   record an amendment to the declaration reflecting the 
  6.2   allocations.  Any remnant of a unit remaining after part of a 
  6.3   unit is taken under this subsection is thereafter a common 
  6.4   element. 
  6.5      (b) Except as provided in subsection (a), if part of a unit 
  6.6   is acquired by eminent domain, the award shall compensate the 
  6.7   unit owner and secured party for the reduction in value of the 
  6.8   unit and its interest in the common elements, whether or not any 
  6.9   common elements are acquired.  Upon acquisition, unless the 
  6.10  order or final certificate otherwise provides, (i) that unit's 
  6.11  allocated interests are reduced in proportion to the reduction 
  6.12  in the size of the unit, or on any other basis specified in the 
  6.13  declaration and (ii) the portion of the allocated interests 
  6.14  divested from the partially acquired unit are automatically 
  6.15  reallocated to that unit and to the remaining units in 
  6.16  proportion to the respective allocated interests of those units 
  6.17  before the taking, with the partially acquired unit 
  6.18  participating in the reallocation on the basis of its reduced 
  6.19  allocated interests. 
  6.20     (c) If part of the common elements is acquired by eminent 
  6.21  domain, the association shall accept service of process on 
  6.22  behalf of all unit owners and the portion of the award 
  6.23  attributable to the common elements taken shall be paid to the 
  6.24  association.  Unless the declaration provides otherwise, any 
  6.25  portion of the award attributable to the acquisition of a 
  6.26  limited common element shall be equally divided among the owners 
  6.27  of the units to which that limited common element was allocated 
  6.28  at the time of acquisition and their secured parties, as their 
  6.29  interests may appear or as provided by the declaration. 
  6.30     (d) In any eminent domain proceeding the units shall be 
  6.31  treated as separate parcels of real estate for valuation 
  6.32  purposes, regardless of the number of units subject to the 
  6.33  proceeding. 
  6.34     (e) Any distribution to a unit owner from the proceeds of 
  6.35  an eminent domain award shall be subject to any limitations 
  6.36  imposed by the declaration or bylaws. 
  7.1      (f) The court order or final certificate containing the 
  7.2   final awards shall be recorded in every county in which any 
  7.3   portion of the common interest community is located. 
  7.4      Sec. 7.  Minnesota Statutes 2004, section 515B.3-102, is 
  7.5   amended to read: 
  7.6      515B.3-102 [POWERS OF UNIT OWNERS' ASSOCIATION.] 
  7.7      (a) Except as provided in subsection (b), and subject to 
  7.8   the provisions of the declaration or bylaws, the association 
  7.9   shall have the power to: 
  7.10     (1) adopt, amend and revoke rules and regulations not 
  7.11  inconsistent with the articles of incorporation, bylaws and 
  7.12  declaration, as follows:  (i) regulating the use of the common 
  7.13  elements; (ii) regulating the use of the units, and conduct of 
  7.14  unit occupants, which may jeopardize the health, safety or 
  7.15  welfare of other occupants, which involves noise or other 
  7.16  disturbing activity, or which may damage the common elements or 
  7.17  other units; (iii) regulating or prohibiting animals; (iv) 
  7.18  regulating changes in the appearance of the common elements and 
  7.19  conduct which may damage the common interest community; (v) 
  7.20  regulating the exterior appearance of the common interest 
  7.21  community, including, for example, balconies and patios, window 
  7.22  treatments, and signs and other displays, regardless of whether 
  7.23  inside a unit; (vi) implementing the articles of incorporation, 
  7.24  declaration and bylaws, and exercising the powers granted by 
  7.25  this section; and (vii) otherwise facilitating the operation of 
  7.26  the common interest community; 
  7.27     (2) adopt and amend budgets for revenues, expenditures and 
  7.28  reserves, and levy and collect assessments for common expenses 
  7.29  from unit owners; 
  7.30     (3) hire and discharge managing agents and other employees, 
  7.31  agents, and independent contractors; 
  7.32     (4) institute, defend, or intervene in litigation or 
  7.33  administrative proceedings (i) in its own name on behalf of 
  7.34  itself or two or more unit owners on matters affecting the 
  7.35  common elements or other matters affecting the common interest 
  7.36  community or, (ii) with the consent of the owners of the 
  8.1   affected units on matters affecting only those units; 
  8.2      (5) make contracts and incur liabilities; 
  8.3      (6) regulate the use, maintenance, repair, replacement and 
  8.4   modification of the common elements and the units; 
  8.5      (7) cause improvements to be made as a part of the common 
  8.6   elements, and, in the case of a cooperative, the units; 
  8.7      (8) acquire, hold, encumber, and convey in its own name any 
  8.8   right, title, or interest to real estate or personal property, 
  8.9   but (i) common elements in a condominium or planned community 
  8.10  may be conveyed or subjected to a security interest only 
  8.11  pursuant to section 515B.3-112, or (ii) part of a cooperative 
  8.12  may be conveyed, or all or part of a cooperative may be 
  8.13  subjected to a security interest, only pursuant to section 
  8.14  515B.3-112; 
  8.15     (9) grant public utility and transportation easements 
  8.16  through, over or under the common elements, and, subject to 
  8.17  approval by resolution of unit owners other than declarant or 
  8.18  its affiliates at a meeting duly called, grant other public or 
  8.19  private easements, leases and licenses through, over or under 
  8.20  the common elements; 
  8.21     (10) impose and receive any payments, fees, or charges for 
  8.22  the use, rental, or operation of the common elements, other than 
  8.23  limited common elements, and for services provided to unit 
  8.24  owners; 
  8.25     (11) impose charges for late payment of assessments and, 
  8.26  after notice and an opportunity to be heard, levy reasonable 
  8.27  fines for violations of the declaration, bylaws, and rules and 
  8.28  regulations of the association; 
  8.29     (12) impose reasonable charges for the review, preparation 
  8.30  and recordation of amendments to the declaration, resale 
  8.31  certificates required by section 515B.4-107, statements of 
  8.32  unpaid assessments, or furnishing copies of association records; 
  8.33     (13) provide for the indemnification of its officers and 
  8.34  directors, and maintain directors' and officers' liability 
  8.35  insurance; 
  8.36     (14) provide for reasonable procedures governing the 
  9.1   conduct of meetings and election of directors; 
  9.2      (15) exercise any other powers conferred by law, or by the 
  9.3   declaration, articles of incorporation or bylaws; and 
  9.4      (16) exercise any other powers necessary and proper for the 
  9.5   governance and operation of the association. 
  9.6      (b) Notwithstanding subsection (a) the declaration or 
  9.7   bylaws may not impose limitations on the power of the 
  9.8   association to deal with the declarant which are more 
  9.9   restrictive than the limitations imposed on the power of the 
  9.10  association to deal with other persons. 
  9.11     Sec. 8.  Minnesota Statutes 2004, section 515B.3-112, is 
  9.12  amended to read: 
  9.13     515B.3-112 [CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS.] 
  9.14     (a) In a condominium or planned community, unless the 
  9.15  declaration provides otherwise, portions of the common elements 
  9.16  may be conveyed or subjected to a security interest by the 
  9.17  association if persons entitled to cast at least 67 percent of 
  9.18  the votes in the association, including 67 percent of the votes 
  9.19  allocated to units not owned by a declarant, or any larger 
  9.20  percentage the declaration specifies, approve that action in 
  9.21  writing or at a meeting; but all unit owners of units to which 
  9.22  any limited common element is allocated must agree in order to 
  9.23  convey that limited common element or subject it to a security 
  9.24  interest.  The declaration may specify a smaller percentage only 
  9.25  if all of the units are restricted to nonresidential use. 
  9.26     (b) In a cooperative, unless the declaration provides 
  9.27  otherwise, part of a cooperative may be conveyed, or all or a 
  9.28  part subjected to a security interest, by the association if 
  9.29  persons entitled to cast at least 67 percent of the votes in the 
  9.30  association, including 67 percent of the votes allocated to 
  9.31  units in which the declarant has no interest, or any larger 
  9.32  percentage the declaration specifies, approves that action in 
  9.33  writing or at a meeting.  If fewer than all of the units or 
  9.34  limited common elements are to be conveyed or subjected to a 
  9.35  security interest, then all unit owners of those units, or the 
  9.36  units to which those limited common elements are allocated, must 
 10.1   agree in order to convey those units or limited common elements 
 10.2   or subject them to a security interest.  The declaration may 
 10.3   specify a smaller percentage only if all of the units are 
 10.4   restricted to nonresidential use.  Any purported conveyance or 
 10.5   other voluntary transfer of an entire cooperative is void, 
 10.6   unless made pursuant to section 515B.2-119. 
 10.7      (c) The association, on behalf of the unit owners, may 
 10.8   contract to convey or encumber an interest in the common 
 10.9   elements of a common interest community pursuant to this 
 10.10  subsection, subject to the required approval.  After the 
 10.11  approval has been obtained, the association shall have a power 
 10.12  of attorney coupled with an interest to effect the conveyance or 
 10.13  encumbrance on behalf of all unit owners in the common interest 
 10.14  community, including the power to execute deeds, mortgages, or 
 10.15  other instruments of conveyance or security.  The instrument 
 10.16  conveying or creating the interest in the common interest 
 10.17  community shall be recorded and shall include as exhibits (i) an 
 10.18  affidavit of the secretary of the association certifying that 
 10.19  the approval required by this section has been obtained and (ii) 
 10.20  a schedule of the names of all unit owners and units in the 
 10.21  common interest community as of the date of the approval. 
 10.22     (d) Except as provided in section 515B.3-102(a)(9), unless 
 10.23  made pursuant to this section, any purported conveyance, 
 10.24  encumbrance, or other voluntary transfer of common elements, or 
 10.25  of any part of a cooperative, is void. 
 10.26     (e) In the case of a conveyance involving a condominium, or 
 10.27  a cooperative in which the unit owners' interests are 
 10.28  characterized as real estate, the association shall record, 
 10.29  simultaneously with the recording of the instrument of 
 10.30  conveyance, an amended CIC plat showing the real estate 
 10.31  constituting the common interest community exclusive of the real 
 10.32  estate conveyed.  In all common interest communities, upon 
 10.33  recording of the instrument of conveyance, the declaration, and 
 10.34  all rights and obligations arising therefrom, shall be deemed 
 10.35  released and terminated as to the real estate 
 10.36  conveyed.  Conveyances to the state or a political subdivision 
 11.1   for transportation purposes are exempt from the requirements of 
 11.2   this paragraph. 
 11.3      (f) A conveyance or encumbrance of common elements, or of a 
 11.4   cooperative, pursuant to this section shall not deprive any unit 
 11.5   of its rights of support, reasonable access or utility services. 
 11.6      (g) Except as provided in subsection (a), or unless the 
 11.7   declaration otherwise provides, a conveyance or encumbrance of 
 11.8   common elements pursuant to this section does not affect the 
 11.9   priority or validity of preexisting encumbrances. 
 11.10     (h) Any proceeds of the conveyance or creation of a 
 11.11  security interest under this section are an asset of the 
 11.12  association. 
 11.13     (i) This section shall not apply to any conveyance or 
 11.14  encumbrance of any interest in a proprietary lease. 
 11.15     Sec. 9.  [REPEALERS; HIGHWAY CHANGES; EFFECTIVE DATES; 
 11.16  REVISOR INSTRUCTIONS.] 
 11.17     Subdivision 1.  [LEGISLATIVE ROUTE NO. 224 REMOVED.] (a) 
 11.18  Minnesota Statutes 2004, section 161.115, subdivision 155, is 
 11.19  repealed effective the day after the commissioner of 
 11.20  transportation issues a notice of transfer transferring 
 11.21  jurisdiction of Legislative Route No. 224 to Becker County and 
 11.22  notifies the revisor of statutes under paragraph (b). 
 11.23     (b) The revisor of statutes shall delete the route 
 11.24  identified in paragraph (a) from Minnesota Statutes when the 
 11.25  commissioner of transportation sends notice to the revisor in 
 11.26  writing informing the revisor of the effective date and that the 
 11.27  conditions required to transfer the route are satisfied. 
 11.28     Subd. 2.  [LEGISLATIVE ROUTE NO. 268 REMOVED.] (a) 
 11.29  Minnesota Statutes 2004, section 161.115, subdivision 199, is 
 11.30  repealed effective the day after the commissioner of 
 11.31  transportation issues a notice of transfer transferring 
 11.32  jurisdiction of Legislative Route No. 268 to Pipestone County 
 11.33  and notifies the revisor of statutes under paragraph (b). 
 11.34     (b) The revisor of statutes shall delete the route 
 11.35  identified in paragraph (a) from Minnesota Statutes when the 
 11.36  commissioner of transportation sends notice to the revisor in 
 12.1   writing informing the revisor of the effective date and that the 
 12.2   conditions required to transfer the route are satisfied.