1.1                          A bill for an act 
  1.2             relating to property rights; requiring the attorney 
  1.3             general to review proposed rules for potential to 
  1.4             result in "takings" of private property; establishing 
  1.5             a cause of action for reduction in value of private 
  1.6             property as a result of governmental regulation; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapters 14; and 557. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [14.085] [REVIEW OF PROPOSED RULES BY ATTORNEY 
  1.11  GENERAL.] 
  1.12     (a) Before giving notice of a proposed rule under section 
  1.13  14.14, subdivision 1a, or 14.22, an agency shall submit the 
  1.14  proposed rule to the attorney general for review under this 
  1.15  section.  The attorney general shall review the proposed rule 
  1.16  and the law the rule is implementing and provide to the agency a 
  1.17  written analysis of the potential of the rule and law to result 
  1.18  in the taking of private property, as defined in paragraph (b).  
  1.19  The agency may not give notice under section 14.14, subdivision 
  1.20  1a, or 14.22, before receiving the attorney general's written 
  1.21  analysis and shall include a summary of the analysis in the 
  1.22  notice. 
  1.23     (b) For the purpose of this section, "taking of private 
  1.24  property" means an action affecting private property for which 
  1.25  compensation to the owner would be required under the United 
  1.26  States Constitution, the Minnesota Constitution, or section 
  1.27  557.13. 
  2.1      Sec. 2.  [557.13] [CAUSE OF ACTION FOR REDUCTION IN VALUE 
  2.2   OF PROPERTY RESULTING FROM GOVERNMENTAL REGULATION.] 
  2.3      Subdivision 1.  [WHEN AVAILABLE.] An owner of real property 
  2.4   in the state may bring an action against the state in the 
  2.5   district court of the county in which the property is located if:
  2.6      (1) the application of a state law or rule restricts, 
  2.7   limits, or otherwise infringes upon a right to real property 
  2.8   that would otherwise exist in the absence of the application; 
  2.9   and 
  2.10     (2) the application of the law or rule would result in a 
  2.11  reduction in the fair market value of the affected property of 
  2.12  at least five percent or $1,000, whichever is less. 
  2.13     Subd. 2.  [REMEDIES.] (a) In an action under this section, 
  2.14  the owner of the affected property may elect to: 
  2.15     (1) retain title to the property and recover a sum equal to 
  2.16  the reduction in the fair market value of the property; or 
  2.17     (2) relinquish title to the property to the state and 
  2.18  recover the fair market value of the property. 
  2.19     (b) Valuation of property under this section must be 
  2.20  accomplished in accordance with the procedures for determining 
  2.21  damages under chapter 117. 
  2.22     Subd. 3.  [PUBLIC NUISANCE EXCEPTION.] An owner of property 
  2.23  may not recover under this section any reduction in value of the 
  2.24  property resulting from an application of a law or rule that 
  2.25  restricts, limits, or otherwise infringes upon a use of the 
  2.26  property that is declared by law to be a public nuisance. 
  2.27     Subd. 4.  [APPLICATION; STATUTE OF LIMITATIONS.] (a) This 
  2.28  section applies to an application of a law or rule if the 
  2.29  application occurred or occurs on or after January 1, 1995.  For 
  2.30  the purposes of this section, the date on which an application 
  2.31  of a law or rule occurs is the date on which the law or rule 
  2.32  first restricts, limits, or otherwise infringes upon a right to 
  2.33  real property and does not mean the date of enactment of a law 
  2.34  or the date of adoption of a rule. 
  2.35     (b) An action under this section must be brought within six 
  2.36  years after the owner of real property discovers that the 
  3.1   application of a law or rule affects the property or within six 
  3.2   years after the state seeks to enforce application of the law or 
  3.3   rule to the property by formal written notice, whichever is 
  3.4   earlier. 
  3.5      Subd. 5.  [COSTS.] In issuing a final order in an action 
  3.6   brought under this section, the court shall award costs of 
  3.7   litigation, including reasonable attorney and expert witness 
  3.8   fees, to a prevailing plaintiff. 
  3.9      Subd. 6.  [OTHER RIGHTS NOT AFFECTED.] This section does 
  3.10  not affect any remedy or right that a person may have under the 
  3.11  United States Constitution, the Minnesota Constitution, or a 
  3.12  federal or state law. 
  3.13     Sec. 3.  [EFFECTIVE DATE.] 
  3.14     Sections 1 and 2 are effective the day following final 
  3.15  enactment.