SF 2643

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to transportation; providing for acquisition 
  1.3             of property for transportation purposes; modifying 
  1.4             provisions relating to section and quarter-section 
  1.5             markers; providing for conveyances of certain lands; 
  1.6             acquiring right-of-way from common interest ownership 
  1.7             communities; turning back Route No. 268 of the trunk 
  1.8             highway system; amending Minnesota Statutes 2002, 
  1.9             sections 117.085; 160.15; 161.442; 515B.1-107; 
  1.10            515B.3-102; 515B.3-112; Minnesota Statutes 2003 
  1.11            Supplement, section 13.44, subdivision 3; proposing 
  1.12            coding for new law in Minnesota Statutes, chapters 
  1.13            161; 174; repealing Minnesota Statutes 2002, sections 
  1.14            117.036; 161.115, subdivision 199. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.17  13.44, subdivision 3, is amended to read: 
  1.18     Subd. 3.  [REAL PROPERTY; APPRAISAL DATA.] (a) 
  1.19  [CONFIDENTIAL OR PROTECTED NONPUBLIC DATA.] Estimated or 
  1.20  appraised values of individual parcels of real property which 
  1.21  are made by personnel of the state, its agencies and 
  1.22  departments, or a political subdivision or by independent 
  1.23  appraisers acting for the state, its agencies and departments, 
  1.24  or a political subdivision for the purpose of selling or 
  1.25  acquiring land through purchase or condemnation are classified 
  1.26  as confidential data on individuals or protected nonpublic data. 
  1.27     (b)  [PUBLIC DATA.] The data made confidential or protected 
  1.28  nonpublic by the provisions of paragraph (a) shall become public 
  1.29  upon the occurrence of any of the following:  
  1.30     (1) the negotiating parties exchange appraisals; 
  2.1      (2) the data are submitted to a court appointed 
  2.2   condemnation commissioner; 
  2.3      (3) the data are presented in court in condemnation 
  2.4   proceedings; or 
  2.5      (4) the negotiating parties enter into an agreement for the 
  2.6   purchase and sale of the property; or 
  2.7      (5) the data are submitted to the owner under section 
  2.8   117.036. 
  2.9      Sec. 2.  Minnesota Statutes 2002, section 117.085, is 
  2.10  amended to read: 
  2.11     117.085 [COMMISSIONERS, POWERS, DUTIES.] 
  2.12     The commissioners, having been duly sworn and qualified 
  2.13  according to law, shall meet as directed by the order of 
  2.14  appointment and hear the allegations and proofs of all persons 
  2.15  interested touching the matters to them committed.  They may 
  2.16  adjourn from time to time and from place to place within the 
  2.17  county, giving oral notice to those present of the time and 
  2.18  place of their next meeting.  All testimony taken by them shall 
  2.19  be given publicly, under oath, and in their presence.  They 
  2.20  shall view the premises, and any of them may subpoena witnesses, 
  2.21  which shall be served as subpoenas in civil actions are served, 
  2.22  and at the cost of the parties applying therefor.  If deemed 
  2.23  necessary, they may require the petitioner or owner to furnish 
  2.24  for their use maps, plats, and other information which the 
  2.25  petitioner or owner may have showing the nature, character, and 
  2.26  extent of the proposed undertaking and the situation of lands 
  2.27  desired therefor.  In proper cases they may reserve to the owner 
  2.28  a right-of-way or other privilege in or over the land taken, or 
  2.29  attach reasonable conditions to such taking in addition to the 
  2.30  damages given or they may make an alternative award, conditioned 
  2.31  upon the granting or withholding of the right specified.  
  2.32  Without unreasonable delay they shall make a separate assessment 
  2.33  and award of the damages which in their judgment will result to 
  2.34  each of the owners of the land by reason of such taking and 
  2.35  report the same to the court.  The commissioners shall not 
  2.36  reduce the amount of the damages awarded because the land being 
  3.1   taken is, at the time of the taking, valued under section 
  3.2   273.111, designated as an agricultural preserve under chapter 
  3.3   473H.  The commissioners, in all such proceedings, may in their 
  3.4   discretion allow and show separately in addition to the award of 
  3.5   damages, reasonable appraisal fees not to exceed a total of 
  3.6   $500 $1,500, provided that this amount for reasonable appraisal 
  3.7   fees as to the property when added to any amount previously paid 
  3.8   to the fee owner or contract purchaser under section 174.12 may 
  3.9   not exceed $1,500.  Upon request of an owner the commissioners 
  3.10  shall show in their report the amount of the award of damages 
  3.11  which is to reimburse the owner and tenant or lessee for the 
  3.12  value of the land taken, and the amount of the award of damages, 
  3.13  if any, which is to reimburse the owner and tenant or lessee for 
  3.14  damages to the remainder involved, whether or not described in 
  3.15  the petition.  The amounts awarded to each person shall also be 
  3.16  shown separately.  The commissioners shall, if requested by any 
  3.17  party, make an express finding of the estimated cost of removal 
  3.18  and remedial actions that will be necessary on the taken 
  3.19  property because of existing environmental contamination. 
  3.20     Sec. 3.  Minnesota Statutes 2002, section 160.15, is 
  3.21  amended to read: 
  3.22     160.15 [PRESERVING SECTION OR QUARTER SECTION CORNERS.] 
  3.23     Subdivision 1.  [PERMANENT MARKING OF CORNERS.] Whenever 
  3.24  the construction, reconstruction, or maintenance of a 
  3.25  public street or highway, including city streets, causes the 
  3.26  destruction or obliteration of a known section or quarter- 
  3.27  section corner marking marker or monument, it shall be the duty 
  3.28  of the road authority having jurisdiction over the highway or 
  3.29  street to shall provide for the permanent marking of such the 
  3.30  corners and to place reference or witness monuments so that the 
  3.31  corners can be readily located.  
  3.32     Subd. 2.  [MANNER OF PLACEMENT.] The permanent marking of 
  3.33  the corners and establishment of reference or witness 
  3.34  monuments shall must be in the manner following:  At the exact 
  3.35  location of the corner there shall must be placed a durable 
  3.36  stone, concrete, or metal marker not less than four inches in 
  4.1   diameter at the top and not less than 18 inches deep.  In the 
  4.2   case of a paved highway there shall also be placed over the 
  4.3   marker and in the surface of the pavement a metallic plug not 
  4.4   less than one inch in diameter and two inches in depth., placed 
  4.5   so as not to be disturbed by routine maintenance activities.  
  4.6   For a paved highway, a supplemental marker must be placed over 
  4.7   the durable monument.  The supplemental marker must be visible 
  4.8   at the road surface and set in a manner so as not to be 
  4.9   disturbed by routine snow plowing.  When not practical or safe 
  4.10  to set a corner marker in a highway surface, a durable metal 
  4.11  marker may be set as a permanent witness monument on the section 
  4.12  line or quarter-section line.  
  4.13     Subd. 3.  [TIME OF PLACEMENT; MONUMENT OF DURABLE 
  4.14  MATERIAL.] Reference or witness monuments evidencing the 
  4.15  location of the corner shall must be established before the 
  4.16  obliteration of the corner in at least two places most 
  4.17  practicable and shall consist of stone, concrete, or cast iron. 
  4.18     Subd. 4.  [FILING OF CERTIFICATE.] The engineer or land 
  4.19  surveyor placing and establishing the markers or monuments shall 
  4.20  file a certificate to that effect in the office of the county 
  4.21  recorder, or in the office of the county surveyor where the 
  4.22  county maintains a full-time office, in the county or counties 
  4.23  wherein the markers or monuments were placed.  Each 
  4.24  certificate shall must contain only the record of markers and 
  4.25  monuments at one corner.  The county recorder may charge a fee 
  4.26  of 50 cents for each certificate filed. 
  4.27     Subd. 5.  [CONTENTS OF CERTIFICATE.] The certificates shall 
  4.28  must be on sheets of durable material, which sheets shall must 
  4.29  be in size 8-1/2 by 11 inches with a margin at the left for 
  4.30  binding.  The certificates shall must contain the following: 
  4.31     (a) (1) identification of section, or quarter-section 
  4.32  corner.; 
  4.33     (b) (2) description of monument removed.; 
  4.34     (c) (3) description of replacement monument.; 
  4.35     (d) (4) reference ties or witness monuments.; 
  4.36     (e) (5) statements relating to physical and parol evidence 
  5.1   relating to history and authenticity of the corner monument.; 
  5.2      (f) (6) date of remonumentation.; and 
  5.3      (g) (7) certification by a registered land surveyor or 
  5.4   registered engineer. 
  5.5      Subd. 6.  [COST OF PLACING MARKERS.] The cost of placing 
  5.6   the markers and monuments, including filing fees, shall must be 
  5.7   paid out of the respective funds provided by law, or set aside 
  5.8   for highway or street purposes. 
  5.9      Sec. 4.  Minnesota Statutes 2002, section 161.442, is 
  5.10  amended to read: 
  5.11     161.442 [RECONVEYANCE TO FORMER OWNER.] 
  5.12     Notwithstanding sections 161.23, 161.41, 161.411, 161.43, 
  5.13  161.44, or any other statute, the commissioner of 
  5.14  transportation, with the consent of the owner, or for good cause 
  5.15  and with the consent of the court, may transfer, sell, or convey 
  5.16  real property including fixtures, and interests in real property 
  5.17  including easements, to the owner from whom the property was 
  5.18  acquired by the state for trunk highway purposes through a 
  5.19  pending eminent domain action.  The transfer of title may be by 
  5.20  stipulation, partial dismissal, bill of sale, or conveyance.  
  5.21  Any resulting change in the state's acquisition must be 
  5.22  explained in the final certificate for that action.  This 
  5.23  provision does not confer on a landowner the right to compel a 
  5.24  reconveyance without the consent of the commissioner. 
  5.25     [EFFECTIVE DATE.] This section is effective the day 
  5.26  following final enactment. 
  5.27     Sec. 5.  [161.443] [SALE OF SURPLUS PROPERTY.] 
  5.28     Subdivision 1.  [TEN-YEAR EXCEPTION.] Notwithstanding 
  5.29  section 161.44, subdivisions 2, 3, and 4, the commissioner is 
  5.30  not required to offer to reconvey land no longer needed for 
  5.31  trunk highway purposes if the land was acquired by the 
  5.32  commissioner at least ten years before the commissioner conveys 
  5.33  the land. 
  5.34     Subd. 2.  [APPROPRIATION.] Proceeds from the sale or lease 
  5.35  of real estate and buildings under sections 161.23, 161.41, and 
  5.36  161.44 must be paid into the trunk highway fund and are 
  6.1   appropriated to the commissioner for paying (1) for the actual 
  6.2   cost of selling or leasing the real estate or buildings, (2) for 
  6.3   the fees required to be paid under sections 161.23 and 161.44, 
  6.4   and (3) for the actual cost of construction, reconstruction, or 
  6.5   improvement of trunk highways, including (i) consultant usage to 
  6.6   support these activities, (ii) payments to landowners for lands 
  6.7   acquired for highway rights-of-way, (iii) payments to lessees, 
  6.8   (iv) interest subsidies, and (v) relocation expenses.  Proceeds 
  6.9   are available until expended. 
  6.10     Sec. 6.  [174.12] [APPRAISAL AND NEGOTIATION REQUIREMENTS 
  6.11  APPLICABLE TO ACQUISITION OF PROPERTY FOR TRANSPORTATION 
  6.12  PURPOSES.] 
  6.13     Subdivision 1.  [APPLICATION.] This section applies to the 
  6.14  acquisition of property for public highways, streets, roads, 
  6.15  alleys, airports, mass transit facilities, or for other 
  6.16  transportation facilities or purposes. 
  6.17     Subd. 2.  [APPRAISAL.] (a) Before acquiring an interest in 
  6.18  real property, the acquiring authority must obtain at least one 
  6.19  appraisal for the property proposed to be acquired.  In making 
  6.20  the appraisal, the appraiser must confer with one or more of the 
  6.21  fee owners or contract purchasers of the property, if reasonably 
  6.22  possible.  Notwithstanding section 13.44 or any law to the 
  6.23  contrary, the acquiring authority must provide the fee owner or 
  6.24  contract purchaser with a copy of the appraisal and inform the 
  6.25  fee owner or contract purchaser of the fee owner's or contract 
  6.26  purchaser's right to obtain an appraisal under this section. 
  6.27     (b) The fee owner or contract purchaser may obtain an 
  6.28  appraisal by a qualified appraiser of the property proposed to 
  6.29  be acquired.  The fee owner or contract purchaser is entitled to 
  6.30  reimbursement for the reasonable costs of the appraisal from the 
  6.31  acquiring authority up to a maximum of $1,500 within 30 days 
  6.32  after the fee owner or contract purchaser submits to the 
  6.33  acquiring authority the information necessary for reimbursement. 
  6.34     Subd. 3.  [NEGOTIATION.] In addition to the appraisal 
  6.35  requirements under subdivision 2, before commencing an eminent 
  6.36  domain proceeding, the acquiring authority must make a good 
  7.1   faith attempt to negotiate personally with the fee owner or 
  7.2   contract purchaser of the property in order to acquire the 
  7.3   property by direct purchase instead of the use of eminent domain 
  7.4   proceedings.  In making this negotiation, the acquiring 
  7.5   authority must consider the appraisals in its possession and 
  7.6   other information that may be relevant to a determination of 
  7.7   damages under this chapter. 
  7.8      Sec. 7.  Minnesota Statutes 2002, section 515B.1-107, is 
  7.9   amended to read: 
  7.10     515B.1-107 [EMINENT DOMAIN.] 
  7.11     (a) If a unit is acquired by eminent domain, or if part of 
  7.12  a unit is acquired by eminent domain leaving the unit owner with 
  7.13  a remnant which may not practically or lawfully be used for any 
  7.14  material purpose permitted by the declaration, the award shall 
  7.15  compensate the unit owner and secured party in the unit as their 
  7.16  interests may appear, whether or not any common element interest 
  7.17  is acquired.  Upon acquisition, unless the order or final 
  7.18  certificate otherwise provides, that unit's allocated interests 
  7.19  are automatically reallocated among the remaining units in 
  7.20  proportion to their respective allocated interests prior to the 
  7.21  taking, and the association shall promptly prepare, execute, and 
  7.22  record an amendment to the declaration reflecting the 
  7.23  allocations.  Any remnant of a unit remaining after part of a 
  7.24  unit is taken under this subsection is thereafter a common 
  7.25  element. 
  7.26     (b) Except as provided in subsection (a), if part of a unit 
  7.27  is acquired by eminent domain, the award shall compensate the 
  7.28  unit owner and secured party for the reduction in value of the 
  7.29  unit and its interest in the common elements, whether or not any 
  7.30  common elements are acquired.  Upon acquisition, unless the 
  7.31  order or final certificate otherwise provides, (i) that unit's 
  7.32  allocated interests are reduced in proportion to the reduction 
  7.33  in the size of the unit, or on any other basis specified in the 
  7.34  declaration and (ii) the portion of the allocated interests 
  7.35  divested from the partially acquired unit are automatically 
  7.36  reallocated to that unit and to the remaining units in 
  8.1   proportion to the respective allocated interests of those units 
  8.2   before the taking, with the partially acquired unit 
  8.3   participating in the reallocation on the basis of its reduced 
  8.4   allocated interests. 
  8.5      (c) If part of the common elements is acquired by eminent 
  8.6   domain, the association shall accept service of process on 
  8.7   behalf of all unit owners and the portion of the award 
  8.8   attributable to the common elements taken shall be paid to the 
  8.9   association.  Unless the declaration provides otherwise, any 
  8.10  portion of the award attributable to the acquisition of a 
  8.11  limited common element shall be equally divided among the owners 
  8.12  of the units to which that limited common element was allocated 
  8.13  at the time of acquisition and their secured parties, as their 
  8.14  interests may appear or as provided by the declaration. 
  8.15     (d) In any eminent domain proceeding the units shall be 
  8.16  treated as separate parcels of real estate for valuation 
  8.17  purposes, regardless of the number of units subject to the 
  8.18  proceeding. 
  8.19     (e) Any distribution to a unit owner from the proceeds of 
  8.20  an eminent domain award shall be subject to any limitations 
  8.21  imposed by the declaration or bylaws. 
  8.22     (f) The court order or final certificate containing the 
  8.23  final awards shall be recorded in every county in which any 
  8.24  portion of the common interest community is located. 
  8.25     Sec. 8.  Minnesota Statutes 2002, section 515B.3-102, is 
  8.26  amended to read: 
  8.27     515B.3-102 [POWERS OF UNIT OWNERS' ASSOCIATION.] 
  8.28     (a) Except as provided in subsection (b), and subject to 
  8.29  the provisions of the declaration or bylaws, the association 
  8.30  shall have the power to: 
  8.31     (1) adopt, amend and revoke rules and regulations not 
  8.32  inconsistent with the articles of incorporation, bylaws and 
  8.33  declaration, as follows:  (i) regulating the use of the common 
  8.34  elements; (ii) regulating the use of the units, and conduct of 
  8.35  unit occupants, which may jeopardize the health, safety or 
  8.36  welfare of other occupants, which involves noise or other 
  9.1   disturbing activity, or which may damage the common elements or 
  9.2   other units; (iii) regulating or prohibiting animals; (iv) 
  9.3   regulating changes in the appearance of the common elements and 
  9.4   conduct which may damage the common interest community; (v) 
  9.5   regulating the exterior appearance of the common interest 
  9.6   community, including, for example, balconies and patios, window 
  9.7   treatments, and signs and other displays, regardless of whether 
  9.8   inside a unit; (vi) implementing the articles of incorporation, 
  9.9   declaration and bylaws, and exercising the powers granted by 
  9.10  this section; and (vii) otherwise facilitating the operation of 
  9.11  the common interest community; 
  9.12     (2) adopt and amend budgets for revenues, expenditures and 
  9.13  reserves, and levy and collect assessments for common expenses 
  9.14  from unit owners; 
  9.15     (3) hire and discharge managing agents and other employees, 
  9.16  agents, and independent contractors; 
  9.17     (4) institute, defend, or intervene in litigation or 
  9.18  administrative proceedings (i) in its own name on behalf of 
  9.19  itself or two or more unit owners on matters affecting the 
  9.20  common elements or other matters affecting the common interest 
  9.21  community or, (ii) with the consent of the owners of the 
  9.22  affected units on matters affecting only those units; 
  9.23     (5) make contracts and incur liabilities; 
  9.24     (6) regulate the use, maintenance, repair, replacement and 
  9.25  modification of the common elements and the units; 
  9.26     (7) cause improvements to be made as a part of the common 
  9.27  elements, and, in the case of a cooperative, the units; 
  9.28     (8) acquire, hold, encumber, and convey in its own name any 
  9.29  right, title, or interest to real estate or personal property, 
  9.30  but (i) common elements in a condominium or planned community 
  9.31  may be conveyed or subjected to a security interest only 
  9.32  pursuant to section 515B.3-112, or (ii) part of a cooperative 
  9.33  may be conveyed, or all or part of a cooperative may be 
  9.34  subjected to a security interest, only pursuant to section 
  9.35  515B.3-112; 
  9.36     (9) grant public utility and transportation easements 
 10.1   through, over or under the common elements, and, subject to 
 10.2   approval by resolution of unit owners other than declarant or 
 10.3   its affiliates at a meeting duly called, grant other public or 
 10.4   private easements, leases and licenses through, over or under 
 10.5   the common elements; 
 10.6      (10) impose and receive any payments, fees, or charges for 
 10.7   the use, rental, or operation of the common elements, other than 
 10.8   limited common elements, and for services provided to unit 
 10.9   owners; 
 10.10     (11) impose charges for late payment of assessments and, 
 10.11  after notice and an opportunity to be heard, levy reasonable 
 10.12  fines for violations of the declaration, bylaws, and rules and 
 10.13  regulations of the association; 
 10.14     (12) impose reasonable charges for the review, preparation 
 10.15  and recordation of amendments to the declaration, resale 
 10.16  certificates required by section 515B.4-107, statements of 
 10.17  unpaid assessments, or furnishing copies of association records; 
 10.18     (13) provide for the indemnification of its officers and 
 10.19  directors, and maintain directors' and officers' liability 
 10.20  insurance; 
 10.21     (14) provide for reasonable procedures governing the 
 10.22  conduct of meetings and election of directors; 
 10.23     (15) exercise any other powers conferred by law, or by the 
 10.24  declaration, articles of incorporation or bylaws; and 
 10.25     (16) exercise any other powers necessary and proper for the 
 10.26  governance and operation of the association. 
 10.27     (b) Notwithstanding subsection (a) the declaration or 
 10.28  bylaws may not impose limitations on the power of the 
 10.29  association to deal with the declarant which are more 
 10.30  restrictive than the limitations imposed on the power of the 
 10.31  association to deal with other persons. 
 10.32     Sec. 9.  Minnesota Statutes 2002, section 515B.3-112, is 
 10.33  amended to read: 
 10.34     515B.3-112 [CONVEYANCE OR ENCUMBRANCE OF COMMON ELEMENTS.] 
 10.35     (a) In a condominium or planned community, unless the 
 10.36  declaration provides otherwise, portions of the common elements 
 11.1   may be conveyed or subjected to a security interest by the 
 11.2   association if persons entitled to cast at least 67 percent of 
 11.3   the votes in the association, including 67 percent of the votes 
 11.4   allocated to units not owned by a declarant, or any larger 
 11.5   percentage the declaration specifies, approve that action in 
 11.6   writing or at a meeting; but all unit owners of units to which 
 11.7   any limited common element is allocated must agree in order to 
 11.8   convey that limited common element or subject it to a security 
 11.9   interest.  The declaration may specify a smaller percentage only 
 11.10  if all of the units are restricted to nonresidential use. 
 11.11     (b) In a cooperative, unless the declaration provides 
 11.12  otherwise, part of a cooperative may be conveyed, or all or a 
 11.13  part subjected to a security interest, by the association if 
 11.14  persons entitled to cast at least 67 percent of the votes in the 
 11.15  association, including 67 percent of the votes allocated to 
 11.16  units in which the declarant has no interest, or any larger 
 11.17  percentage the declaration specifies, approves that action in 
 11.18  writing or at a meeting.  If fewer than all of the units or 
 11.19  limited common elements are to be conveyed or subjected to a 
 11.20  security interest, then all unit owners of those units, or the 
 11.21  units to which those limited common elements are allocated, must 
 11.22  agree in order to convey those units or limited common elements 
 11.23  or subject them to a security interest.  The declaration may 
 11.24  specify a smaller percentage only if all of the units are 
 11.25  restricted to nonresidential use.  Any purported conveyance or 
 11.26  other voluntary transfer of an entire cooperative is void, 
 11.27  unless made pursuant to section 515B.2-119. 
 11.28     (c) The association, on behalf of the unit owners, may 
 11.29  contract to convey or encumber an interest in the common 
 11.30  elements of a common interest community pursuant to this 
 11.31  subsection, subject to the required approval.  After the 
 11.32  approval has been obtained, the association shall have a power 
 11.33  of attorney coupled with an interest to effect the conveyance or 
 11.34  encumbrance on behalf of all unit owners in the common interest 
 11.35  community, including the power to execute deeds, mortgages, or 
 11.36  other instruments of conveyance or security.  The instrument 
 12.1   conveying or creating the interest in the common interest 
 12.2   community shall be recorded and shall include as exhibits (i) an 
 12.3   affidavit of the secretary of the association certifying that 
 12.4   the approval required by this section has been obtained and (ii) 
 12.5   a schedule of the names of all unit owners and units in the 
 12.6   common interest community as of the date of the approval. 
 12.7      (d) Except as provided in section 515B.3-102(a)(9), unless 
 12.8   made pursuant to this section, any purported conveyance, 
 12.9   encumbrance, or other voluntary transfer of common elements, or 
 12.10  of any part of a cooperative, is void. 
 12.11     (e) In the case of a conveyance involving a condominium, or 
 12.12  a cooperative in which the unit owners' interests are 
 12.13  characterized as real estate, the association shall record, 
 12.14  simultaneously with the recording of the instrument of 
 12.15  conveyance, an amended CIC plat showing the real estate 
 12.16  constituting the common interest community exclusive of the real 
 12.17  estate conveyed.  In all common interest communities, upon 
 12.18  recording of the instrument of conveyance, the declaration, and 
 12.19  all rights and obligations arising therefrom, shall be deemed 
 12.20  released and terminated as to the real estate 
 12.21  conveyed.  Conveyances to the state for transportation purposes 
 12.22  are exempt from the requirements of this paragraph. 
 12.23     (f) A conveyance or encumbrance of common elements, or of a 
 12.24  cooperative, pursuant to this section shall not deprive any unit 
 12.25  of its rights of support, reasonable access or utility services. 
 12.26     (g) Except as provided in subsection (a), or unless the 
 12.27  declaration otherwise provides, a conveyance or encumbrance of 
 12.28  common elements pursuant to this section does not affect the 
 12.29  priority or validity of preexisting encumbrances. 
 12.30     (h) Any proceeds of the conveyance or creation of a 
 12.31  security interest under this section are an asset of the 
 12.32  association. 
 12.33     (i) This section shall not apply to any conveyance or 
 12.34  encumbrance of any interest in a proprietary lease. 
 12.35     Sec. 10.  [REPEALER.] 
 12.36     Subdivision 1.  [LAND ACQUIRED FOR TRANSPORTATION 
 13.1   PURPOSES.] Minnesota Statutes 2002, section 117.036, is repealed.
 13.2      Subd. 2.  [LEGISLATIVE ROUTE NO. 268 REMOVED.] (a) 
 13.3   Minnesota Statutes 2002, section 161.115, subdivision 199, is 
 13.4   repealed on the effective date in the notice of transfer issued 
 13.5   by the commissioner of transportation transferring jurisdiction 
 13.6   of Legislative Route No. 268 to Pipestone County. 
 13.7      (b) The revisor of statutes shall delete the route 
 13.8   identified in paragraph (a) from Minnesota Statutes when the 
 13.9   commissioner of transportation sends notice to the revisor in 
 13.10  writing informing the revisor of the effective date and that the 
 13.11  conditions required to transfer the route are satisfied.