1.1                          A bill for an act 
  1.2             relating to transportation; providing for claims by 
  1.3             person incurring injury to person or property while 
  1.4             operating recreational vehicle on trunk highway 
  1.5             right-of-way; holding department of transportation not 
  1.6             liable solely for owning contaminated land; modifying 
  1.7             certain provisions relating to the acquisition of 
  1.8             property for public purposes; allowing the district 
  1.9             court handling eminent domain proceeds to grant 
  1.10            judgments for return of overpayments; reserving 
  1.11            easement and permit interests to utilities in real 
  1.12            property conveyed by commissioner of transportation; 
  1.13            exempting government bodies from being required to 
  1.14            file certificate of value when real estate is 
  1.15            conveyed; amending Minnesota Statutes 1996, sections 
  1.16            3.736, subdivision 3; 115B.03, subdivision 5; 
  1.17            115C.021, by adding a subdivision; 117.025, 
  1.18            subdivision 2; 117.155; 160.08, subdivisions 4 and 5; 
  1.19            161.24, subdivision 1; 161.45, by adding a 
  1.20            subdivision; and 272.115. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1996, section 3.736, 
  1.23  subdivision 3, is amended to read: 
  1.24     Subd. 3.  [EXCLUSIONS.] Without intent to preclude the 
  1.25  courts from finding additional cases where the state and its 
  1.26  employees should not, in equity and good conscience, pay 
  1.27  compensation for personal injuries or property losses, the 
  1.28  legislature declares that the state and its employees are not 
  1.29  liable for the following losses: 
  1.30     (a) a loss caused by an act or omission of a state employee 
  1.31  exercising due care in the execution of a valid or invalid 
  1.32  statute or rule; 
  1.33     (b) a loss caused by the performance or failure to perform 
  2.1   a discretionary duty, whether or not the discretion is abused; 
  2.2      (c) a loss in connection with the assessment and collection 
  2.3   of taxes; 
  2.4      (d) a loss caused by snow or ice conditions on a highway or 
  2.5   public sidewalk that does not abut a publicly owned building or 
  2.6   a publicly owned parking lot, except when the condition is 
  2.7   affirmatively caused by the negligent acts of a state employee; 
  2.8      (e) a loss caused by wild animals in their natural state, 
  2.9   except as provided in section 3.7371; 
  2.10     (f) a loss other than injury to or loss of property or 
  2.11  personal injury or death; 
  2.12     (g) a loss caused by the condition of unimproved real 
  2.13  property owned by the state, which means land that the state has 
  2.14  not improved, state land that contains idled or abandoned mine 
  2.15  pits or shafts, and appurtenances, fixtures, and attachments to 
  2.16  land that the state has neither affixed nor improved; 
  2.17     (h) a loss involving or arising out of the use or operation 
  2.18  of a recreational motor vehicle, as defined in section 84.90, 
  2.19  subdivision 1, within the right-of-way of a trunk highway, as 
  2.20  defined in section 160.02; 
  2.21     (i) a loss incurred by a user arising from the 
  2.22  construction, operation, or maintenance of the outdoor 
  2.23  recreation system, as defined in section 86A.04, or for a loss 
  2.24  arising from the construction, operation, maintenance, or 
  2.25  administration of grants-in-aid trails as defined in section 
  2.26  85.018, or for a loss arising from the construction, operation, 
  2.27  or maintenance of a water access site created by the iron range 
  2.28  resources and rehabilitation board, except that the state is 
  2.29  liable for conduct that would entitle a trespasser to damages 
  2.30  against a private person.  For the purposes of this clause, a 
  2.31  water access site, as defined in section 86A.04 or created by 
  2.32  the iron range resources and rehabilitation board, that provides 
  2.33  access to an idled, water filled mine pit, also includes the 
  2.34  entire water filled area of the pit and, further, includes 
  2.35  losses caused by the caving or slumping of the mine pit walls; 
  2.36     (i) (j) a loss of benefits or compensation due under a 
  3.1   program of public assistance or public welfare, except if state 
  3.2   compensation for loss is expressly required by federal law in 
  3.3   order for the state to receive federal grants-in-aid; 
  3.4      (j) (k) a loss based on the failure of a person to meet the 
  3.5   standards needed for a license, permit, or other authorization 
  3.6   issued by the state or its agents; 
  3.7      (k) (l) a loss based on the usual care and treatment, or 
  3.8   lack of care and treatment, of a person at a state hospital or 
  3.9   state corrections facility where reasonable use of available 
  3.10  appropriations has been made to provide care; 
  3.11     (l) (m) loss, damage, or destruction of property of a 
  3.12  patient or inmate of a state institution; 
  3.13     (m) (n) a loss for which recovery is prohibited by section 
  3.14  169.121, subdivision 9; 
  3.15     (n) (o) a loss caused by an aeration, bubbler, water 
  3.16  circulation, or similar system used to increase dissolved oxygen 
  3.17  or maintain open water on the ice of public waters, that is 
  3.18  operated under a permit issued by the commissioner of natural 
  3.19  resources; 
  3.20     (o) (p) a loss incurred by a visitor to the Minnesota 
  3.21  zoological garden, except that the state is liable for conduct 
  3.22  that would entitle a trespasser to damages against a private 
  3.23  person; and 
  3.24     (p) (q) a loss arising out of a person's use of a logging 
  3.25  road on public land that is maintained exclusively to provide 
  3.26  access to timber on that land by harvesters of the timber, and 
  3.27  is not signed or otherwise held out to the public as a public 
  3.28  highway. 
  3.29     The state will not pay punitive damages. 
  3.30     Sec. 2.  Minnesota Statutes 1996, section 115B.03, 
  3.31  subdivision 5, is amended to read: 
  3.32     Subd. 5.  [EMINENT DOMAIN.] (a) The state, an agency of the 
  3.33  state, or a political subdivision is not a responsible person 
  3.34  under this section solely as a result of the acquisition of 
  3.35  property if the property was acquired by the state, an agency of 
  3.36  the state, or a political subdivision that acquires property 
  4.1   through exercise of the power of eminent domain, or through 
  4.2   negotiated purchase after filing a petition for the taking of 
  4.3   the property through eminent domain, or after adopting a 
  4.4   redevelopment or development plan under sections 469.001 to 
  4.5   469.134 describing the property and stating its intended use and 
  4.6   the necessity of its taking is not a responsible person under 
  4.7   this section solely as a result of the acquisition of the 
  4.8   property, or after adopting a layout plan for highway 
  4.9   development under sections 161.15 to 161.241 describing the 
  4.10  property and stating its intended use and the necessity of its 
  4.11  taking.  
  4.12     (b) A person who acquires property from the state, an 
  4.13  agency of the state, or a political subdivision, is not a 
  4.14  responsible person under this section solely as a result of the 
  4.15  acquisition of property if the property was acquired by the 
  4.16  state, agency, or political subdivision through exercise of the 
  4.17  power of eminent domain or by negotiated purchase after filing a 
  4.18  petition for the taking of the property through eminent domain 
  4.19  or, after adopting a redevelopment or development plan under 
  4.20  sections 469.001 to 469.134 describing the property and stating 
  4.21  its intended use and the necessity of its taking, or after 
  4.22  adopting a layout plan for highway development under sections 
  4.23  161.15 to 161.241 describing the property and stating its 
  4.24  intended use and the necessity of its taking. 
  4.25     Sec. 3.  Minnesota Statutes 1996, section 115C.021, is 
  4.26  amended by adding a subdivision to read: 
  4.27     Subd. 3a.  [EMINENT DOMAIN.] (a) The department of 
  4.28  transportation is not a responsible person under this section 
  4.29  solely as a result of the acquisition of property if the 
  4.30  property was acquired by the department through exercise of the 
  4.31  power of eminent domain, through negotiated purchase after 
  4.32  filing a petition for the taking of the property through eminent 
  4.33  domain, or after adopting a layout plan for highway development 
  4.34  under sections 161.15 to 161.241 describing the property and 
  4.35  stating its intended use and the necessity of its taking.  
  4.36     (b) A person who acquires property from the department is 
  5.1   not a responsible person under this section solely as a result 
  5.2   of the acquisition of property if the property was acquired by 
  5.3   the department through exercise of the power of eminent domain, 
  5.4   by negotiated purchase after filing a petition for the taking of 
  5.5   the property through eminent domain, or after adopting a layout 
  5.6   plan for highway development under sections 161.15 to 161.241 
  5.7   describing the property and stating its intended use and the 
  5.8   necessity of its taking. 
  5.9      Sec. 4.  Minnesota Statutes 1996, section 117.025, 
  5.10  subdivision 2, is amended to read: 
  5.11     Subd. 2.  [TAKING.] Taking and all words and phrases of 
  5.12  like import include every interference, under the right of 
  5.13  eminent domain, with the possession, enjoyment, or value of 
  5.14  private property acquisition, destruction, or damage to private 
  5.15  property for public use.  
  5.16     Sec. 5.  Minnesota Statutes 1996, section 117.155, is 
  5.17  amended to read: 
  5.18     117.155 [PAYMENTS; PARTIAL PAYMENT PENDING APPEAL.] 
  5.19     Except as otherwise provided herein payment of damages 
  5.20  awarded may be made or tendered at any time after the filing of 
  5.21  the report; and the duty of the petitioner to pay the amount of 
  5.22  any award or final judgment upon appeal shall, for all purposes, 
  5.23  be held and construed to be full and just compensation to the 
  5.24  respective owners or the persons interested in the lands.  If 
  5.25  either the petitioner or any respondent appeals from an award, 
  5.26  the respondent or respondents, if there is more than one, except 
  5.27  encumbrancers having an interest in the award which has been 
  5.28  appealed, may demand of the petitioner a partial payment of the 
  5.29  award pending the final determination thereof, and it shall be 
  5.30  the duty of the petitioner to comply with such demand and to 
  5.31  promptly pay the amount demanded but not in excess of an amount 
  5.32  equal to three-fourths of the award of damages for the parcel 
  5.33  which has been appealed, less any payments made by petitioner 
  5.34  pursuant to section 117.042; provided, however, that the 
  5.35  petitioner may by motion after due notice to all interested 
  5.36  parties request, and the court may order, reduction in the 
  6.1   amount of the partial payment for cause shown.  If an appeal is 
  6.2   taken from an award the petitioner may, but it cannot be 
  6.3   compelled to, pay the entire amount of the award pending the 
  6.4   final determination thereof.  If any respondent or respondents 
  6.5   having an interest in the award refuses to accept such payment 
  6.6   the petitioner may pay the amount thereof to the court 
  6.7   administrator of district court to be paid out under direction 
  6.8   of the court.  A partial or full payment as herein provided 
  6.9   shall not draw interest from the condemner from the date of 
  6.10  payment or deposit, and upon final determination of any appeal 
  6.11  the total award of damages shall be reduced by the amount of the 
  6.12  partial or full payment.  If any partial or full payment exceeds 
  6.13  the amount of the award of compensation as finally determined, 
  6.14  the petitioner shall have a claim against the respondents 
  6.15  receiving such payment for the amount thereof, to be recoverable 
  6.16  in the same manner as in any civil action upon petitioner's 
  6.17  motion, final judgment must be entered in the condemnation 
  6.18  action in favor of the petitioner in the amount of the balance 
  6.19  owed to the petitioner and is recoverable within the original 
  6.20  condemnation action. 
  6.21     Sec. 6.  Minnesota Statutes 1996, section 160.08, 
  6.22  subdivision 4, is amended to read: 
  6.23     Subd. 4.  [ACQUISITION OF PROPERTY.] Property rights, 
  6.24  including rights of access, air, view, and light that are 
  6.25  compensable under Minnesota and federal constitutions, may be 
  6.26  acquired by said road authorities with respect to both private 
  6.27  and public property by purchase, gift, or condemnation.  
  6.28     Sec. 7.  Minnesota Statutes 1996, section 160.08, 
  6.29  subdivision 5, is amended to read: 
  6.30     Subd. 5.  [ELIMINATION OF GRADE INTERSECTIONS; ADDITIONAL 
  6.31  ACCESS OPENINGS; COMPENSATION.] Such road authorities may 
  6.32  locate, establish, and construct controlled access highways, or 
  6.33  may designate and establish an existing street or highway as a 
  6.34  controlled access highway.  Such road authorities are authorized 
  6.35  to provide for the elimination of grade intersections of 
  6.36  controlled access highways with other existing streets or 
  7.1   highways of any kind or nature whatsoever.  The elimination may 
  7.2   be accomplished by the construction of grade separations, or the 
  7.3   construction of an outer lane as part of the controlled access 
  7.4   highway, or by closing off streets or highways at the 
  7.5   right-of-way boundary of the controlled access highway.  When an 
  7.6   outer lane is constructed, the abutting owners shall have access 
  7.7   to the outer lane unless the petition and notice in 
  7.8   condemnation, or the highway deed in cases of purchase, clearly 
  7.9   specifies that the right of access to the outer lane has been 
  7.10  acquired.  After the establishment of any controlled access 
  7.11  highway no other street or highway or private entry shall be 
  7.12  opened into or connected with any controlled access highway 
  7.13  without the consent and prior approval of the road authority 
  7.14  having jurisdiction over the controlled access highway.  The 
  7.15  consent and approval shall be given only if the public interest 
  7.16  shall be served thereby.  In the case of any elimination of 
  7.17  existing access, air, view, light, or other constitutionally 
  7.18  compensable property rights, the owner shall be compensated for 
  7.19  the loss by purchase or condemnation.  
  7.20     Sec. 8.  Minnesota Statutes 1996, section 161.24, 
  7.21  subdivision 1, is amended to read: 
  7.22     Subdivision 1.  [GRADE AT INTERSECTIONS.] When the 
  7.23  construction or reconstruction of a trunk highway results in a 
  7.24  change of grade which necessitates a change of grade in 
  7.25  intersecting or connecting highways or streets, including city 
  7.26  streets, the cost of making the grade changes and any damages 
  7.27  occasioned thereby that are constitutionally required to be paid 
  7.28  shall be paid out of the trunk highway fund. 
  7.29     Sec. 9.  Minnesota Statutes 1996, section 161.45, is 
  7.30  amended by adding a subdivision to read: 
  7.31     Subd. 3.  [UTILITY INTERESTS WHEN REAL PROPERTY 
  7.32  CONVEYED.] In proceedings to vacate, transfer, turn back, or 
  7.33  otherwise convey an interest in real property owned or 
  7.34  controlled by the department, the commissioner may specify that 
  7.35  the conveyance of the department's interest does not affect a 
  7.36  prior, existing utility easement in the property or use of the 
  8.1   property granted to a utility under permit issued by the 
  8.2   department.  In addition, the commissioner may convey interests 
  8.3   in real property, including an easement, subject to the right of 
  8.4   a utility to enter upon the right-of-way to maintain, repair, 
  8.5   replace, reconstruct, improve, remove, or otherwise attend to 
  8.6   its equipment.  Where the utility had no preexisting easement 
  8.7   over the real property, this subdivision does not prohibit a 
  8.8   political subdivision, government agency, or private entity from 
  8.9   negotiating or contracting with a utility with regard to the 
  8.10  utility's easement or other interest in the property, but the 
  8.11  utility shall continue to hold the interest in the property and 
  8.12  the right of reasonable entry unless and until the utility 
  8.13  agrees in writing to relinquish its interests. 
  8.14     Sec. 10.  Minnesota Statutes 1996, section 272.115, is 
  8.15  amended to read: 
  8.16     272.115 [CERTIFICATE OF VALUE; FILING.] 
  8.17     Subdivision 1.  [REQUIREMENT.] Except as otherwise provided 
  8.18  in subdivision 5, whenever any real estate is sold for a 
  8.19  consideration in excess of $1,000, whether by warranty deed, 
  8.20  quitclaim deed, contract for deed or any other method of sale, 
  8.21  the grantor, grantee or the legal agent of either shall file a 
  8.22  certificate of value with the county auditor in the county in 
  8.23  which the property is located when the deed or other document is 
  8.24  presented for recording.  Contract for deeds are subject to 
  8.25  recording under section 507.235, subdivision 1.  Value shall, in 
  8.26  the case of any deed not a gift, be the amount of the full 
  8.27  actual consideration thereof, paid or to be paid, including the 
  8.28  amount of any lien or liens assumed.  The items and value of 
  8.29  personal property transferred with the real property must be 
  8.30  listed and deducted from the sale price.  The certificate of 
  8.31  value shall include the classification to which the property 
  8.32  belongs for the purpose of determining the fair market value of 
  8.33  the property.  The certificate shall include financing terms and 
  8.34  conditions of the sale which are necessary to determine the 
  8.35  actual, present value of the sale price for purposes of the 
  8.36  sales ratio study.  The commissioner of revenue shall promulgate 
  9.1   administrative rules specifying the financing terms and 
  9.2   conditions which must be included on the certificate.  Pursuant 
  9.3   to the authority of the commissioner of revenue in section 
  9.4   270.066, the certificate of value must include the social 
  9.5   security number or the federal employer identification number of 
  9.6   the grantors and grantees.  The identification numbers of the 
  9.7   grantors and grantees are private data on individuals or 
  9.8   nonpublic data as defined in section 13.02, subdivisions 9 and 
  9.9   12, but, notwithstanding that section, the private or nonpublic 
  9.10  data may be disclosed to the commissioner of revenue for 
  9.11  purposes of tax administration. 
  9.12     Subd. 2.  [FORM; INFORMATION REQUIRED.] The certificate of 
  9.13  value shall require such facts and information as may be 
  9.14  determined by the commissioner to be reasonably necessary in the 
  9.15  administration of the state education aid formulas.  The form of 
  9.16  the certificate of value shall be prescribed by the department 
  9.17  of revenue which shall provide an adequate supply of forms to 
  9.18  each county auditor. 
  9.19     Subd. 3.  [COPIES TRANSMITTED; HOMESTEAD STATUS.] The 
  9.20  county auditor shall transmit two true copies of the certificate 
  9.21  of value to the assessor who shall insert the most recent market 
  9.22  value and when available, the year of original construction of 
  9.23  each parcel of property on both copies and shall transmit one 
  9.24  copy to the department of revenue.  Upon the request of a city 
  9.25  council located within the county, a copy of each certificate of 
  9.26  value for property located in that city shall be made available 
  9.27  to the governing body of the city.  The assessor shall remove 
  9.28  the homestead classification for the following assessment year 
  9.29  from a property which is sold or transferred, unless the grantee 
  9.30  or the person to whom the property is transferred completes a 
  9.31  homestead application under section 273.124, subdivision 13, and 
  9.32  qualifies for homestead status. 
  9.33     Subd. 4.  [ELIGIBILITY FOR HOMESTEAD STATUS.] No real 
  9.34  estate sold or transferred on or after January 1, 1993, under 
  9.35  subdivision 1 shall be classified as a homestead, unless (1) a 
  9.36  certificate of value has been filed with the county auditor in 
 10.1   accordance with this section, or (2) the real estate was 
 10.2   conveyed by the federal government, the state, a political 
 10.3   subdivision of the state, or combination of them to a person 
 10.4   otherwise eligible to receive homestead classification of the 
 10.5   property. 
 10.6      This subdivision shall apply to any real estate taxes that 
 10.7   are payable the year or years following the sale or transfer of 
 10.8   the property. 
 10.9      Subd. 5.  [EXEMPTION FOR GOVERNMENT BODIES.] A certificate 
 10.10  of real estate value is not required when the real estate is 
 10.11  being conveyed to or by a public authority or agency of the 
 10.12  federal government, the state of Minnesota, a political 
 10.13  subdivision of the state, or any combination of them.