Bill Text: MN SF2175 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Real property acquisition by state agencies regulations
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2014-05-21 - Secretary of State Chapter 304 [SF2175 Detail]
Download: Minnesota-2013-SF2175-Engrossed.html
1.2relating to state government; prohibiting state agencies from paying more than
1.3ten percent over the appraised value to acquire real property; requiring a report;
1.4proposing coding for new law in Minnesota Statutes, chapter 16B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.7 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.8agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.9Minnesota State Colleges and Universities, but does not include the Department of
1.10Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.11Resources.
1.12 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.13an interest in real property with public money, the procedure in this section applies. The
1.14agency must first prepare a fact sheet providing a legal description of the real property to
1.15be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.16of the real property by a person licensed under chapter 82B as an appraiser for the type
1.17of real property being appraised and the appraisal must be done in accordance with the
1.18requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.19in any of the real property to be appraised. The agency may pay less for the property than
1.20the appraised value but must not agree to pay more than ten percent above the appraised
1.21value. If the real property is appraised at less than $100,000 by the agency and the seller,
1.22the agency may pay more than 110 percent of the agency's appraised value but no more than
1.23the seller's appraised value. New appraisals may be made at the discretion of the agency.
2.1 Sec. 2. REPORT.
2.2The commissioner of management and budget shall report by January 15, 2015, to
2.3the chairs and ranking minority members of the legislative committees with jurisdiction
2.4over policy and finance relating to real property acquisition by the state on what
2.5information and documentation related to the parties' administrative costs should be
2.6required before the state agrees to acquire real property or an interest in real property.
2.7The commissioner, as part of the report, shall recommend whether exceptions to the
2.8requirements of Minnesota Statutes, section 16B.297, are necessary to protect the public
2.9interest and make recommendations for appropriate exceptions, if any.
1.3ten percent over the appraised value to acquire real property; requiring a report;
1.4proposing coding for new law in Minnesota Statutes, chapter 16B.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [16B.297] ACQUISITION OF REAL PROPERTY.
1.7 Subdivision 1. Definition. For the purposes of this section, "agency" means an
1.8agency as defined in section 16B.01, subdivision 2, and the Board of Trustees of the
1.9Minnesota State Colleges and Universities, but does not include the Department of
1.10Transportation, the Department of Natural Resources, or the Board of Water and Soil
1.11Resources.
1.12 Subd. 2. Maximum price. When an agency is authorized to acquire real property or
1.13an interest in real property with public money, the procedure in this section applies. The
1.14agency must first prepare a fact sheet providing a legal description of the real property to
1.15be acquired and the legal authority for its acquisition. The agency must obtain an appraisal
1.16of the real property by a person licensed under chapter 82B as an appraiser for the type
1.17of real property being appraised and the appraisal must be done in accordance with the
1.18requirements of chapter 82B. The appraiser shall not have an interest directly or indirectly
1.19in any of the real property to be appraised. The agency may pay less for the property than
1.20the appraised value but must not agree to pay more than ten percent above the appraised
1.21value. If the real property is appraised at less than $100,000 by the agency and the seller,
1.22the agency may pay more than 110 percent of the agency's appraised value but no more than
1.23the seller's appraised value. New appraisals may be made at the discretion of the agency.
2.1 Sec. 2. REPORT.
2.2The commissioner of management and budget shall report by January 15, 2015, to
2.3the chairs and ranking minority members of the legislative committees with jurisdiction
2.4over policy and finance relating to real property acquisition by the state on what
2.5information and documentation related to the parties' administrative costs should be
2.6required before the state agrees to acquire real property or an interest in real property.
2.7The commissioner, as part of the report, shall recommend whether exceptions to the
2.8requirements of Minnesota Statutes, section 16B.297, are necessary to protect the public
2.9interest and make recommendations for appropriate exceptions, if any.
