SF 2175

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 10/30/2014 12:53pm

A bill for an act
relating to state government; prohibiting state agencies from paying more than
ten percent over the appraised value to acquire real property; requiring a report;
proposing coding for new law in Minnesota Statutes, chapter 16B.

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

Section 1.

new text begin [16B.297] ACQUISITION OF REAL PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "agency" means an
agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
Minnesota State Colleges and Universities, but does not include the Department of
Transportation, the Department of Natural Resources, or the Board of Water and Soil
Resources.
new text end

new text begin Subd. 2. new text end

new text begin Maximum price. new text end

new text begin When an agency is authorized to acquire real property or
an interest in real property with public money, the procedure in this section applies. The
agency must first prepare a fact sheet providing a legal description of the real property to
be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
of the real property by a person licensed under chapter 82B as an appraiser for the type
of real property being appraised and the appraisal must be done in accordance with the
requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
in any of the real property to be appraised. The agency may pay less for the property than
the appraised value but must not agree to pay more than ten percent above the appraised
value. If the real property is appraised at less than $100,000 by the agency and the seller,
the agency may pay more than 110 percent of the agency's appraised value but no more than
the seller's appraised value. New appraisals may be made at the discretion of the agency.
new text end

Sec. 2. new text begin REPORT.
new text end

new text begin The commissioner of management and budget shall report by January 15, 2015, to
the chairs and ranking minority members of the legislative committees with jurisdiction
over policy and finance relating to real property acquisition by the state on what
information and documentation related to the parties' administrative costs should be
required before the state agrees to acquire real property or an interest in real property.
The commissioner, as part of the report, shall recommend whether exceptions to the
requirements of Minnesota Statutes, section 16B.297, are necessary to protect the public
interest and make recommendations for appropriate exceptions, if any.
new text end