House File 2454 - Introduced



                                       HOUSE FILE       
                                       BY  KAUFMANN, TYMESON, and
                                           GRASSLEY


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to eminent domain authority and condemnation
  2    procedures and including effective date and applicability date
  3    provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5685YH 82
  6 sc/rj/8

PAG LIN



  1  1    Section 1.  Section 6A.22, subsection 2, paragraph c,
  1  2 subparagraph (1), Code 2007, is amended to read as follows:
  1  3    (1)  If private property is to be condemned for development
  1  4 or creation of a lake, only that number of acres justified as
  1  5 reasonable and necessary for a surface drinking water source,
  1  6 and not otherwise acquired, may be condemned.  In addition
  1  7 Prior to making a determination that such lake development or
  1  8 creation is reasonable and necessary, the acquiring agency
  1  9 shall conduct a review of demonstrate by clear and convincing
  1 10 evidence that no other prudent and feasible alternatives to
  1 11 alternative for provision of a drinking water source prior to
  1 12 making a determination that such lake development or creation
  1 13 is reasonable and necessary exists.  Development or creation
  1 14 of a lake as a surface drinking water source includes all of
  1 15 the following:
  1 16    (a)  Construction of the dam, including sites for suitable
  1 17 borrow material and the auxiliary spillway.
  1 18    (b)  The water supply pool.
  1 19    (c)  The sediment pool.
  1 20    (d)  The flood control pool.
  1 21    (e)  The floodwater retarding pool.
  1 22    (f)  The surrounding area upstream of the dam no higher in
  1 23 elevation than the top of the dam's elevation.
  1 24    (g)  The appropriate setback distance required by state or
  1 25 federal laws and regulations to protect drinking water supply.
  1 26    For purposes of this subparagraph (1), "number of acres
  1 27 justified as reasonable and necessary for a surface drinking
  1 28 water source" means according to guidelines of the United
  1 29 States natural resource conservation service and according to
  1 30 analyses of surface drinking water capacity needs conducted by
  1 31 one or more registered professional engineers.  However, any
  1 32 guidelines or analyses related to future water capacity needs
  1 33 or water capacity needs in time of drought shall be based on
  1 34 the current rate of drinking water usage in the area to be
  1 35 served by the surface drinking water source.
  2  1    In making determinations required under this subparagraph
  2  2 (1), any reviews or analyses conducted by an engineer shall be
  2  3 conducted by a registered professional engineer selected by a
  2  4 committee of private landowners affected by the proposed
  2  5 condemnation action.  The acquiring agency shall be
  2  6 responsible for paying the fees and expenses of an engineer
  2  7 whose services are retained pursuant to this subparagraph (1).
  2  8    Sec. 2.  Section 6A.24, subsection 3, Code 2007, is amended
  2  9 to read as follows:
  2 10    3.  For any action brought under this section, the burden
  2 11 of proof shall be on the acquiring agency to prove by a
  2 12 preponderance of the clear and convincing evidence that the
  2 13 finding of public use, public purpose, or public improvement
  2 14 meets the definition of those terms.  If a property owner or a
  2 15 contract purchaser of record or a tenant occupying the
  2 16 property under a recorded lease prevails in an action brought
  2 17 under this section, the acquiring agency shall be required to
  2 18 pay the costs, including reasonable attorney fees, of the
  2 19 adverse party.
  2 20    Sec. 3.  Section 6B.54, subsection 10, Code 2007, is
  2 21 amended by adding the following new paragraph:
  2 22    NEW PARAGRAPH.  c.  Reasonable attorney fees and reasonable
  2 23 costs, including expert witness fees and fees relating to
  2 24 appraisal of the property, not to exceed one hundred thousand
  2 25 dollars.
  2 26    Sec. 4.  Section 316.4, subsection 1, Code 2007, is amended
  2 27 to read as follows:
  2 28    1.  If a program or project undertaken by a displacing
  2 29 agency will result in the displacement of a person, the
  2 30 displacing agency shall make a payment to the displaced
  2 31 person, upon proper application as approved by the displacing
  2 32 agency, for actual reasonable and necessary expenses incurred
  2 33 in moving the person, the person's family, business, farm
  2 34 operation, or other personal property subject to rules and
  2 35 limits established by the department.  The payment may also
  3  1 provide for actual direct losses of tangible personal
  3  2 property, purchase of substitute personal property, business
  3  3 reestablishment expenses, storage expenses, and expenses
  3  4 incurred in searching for a replacement business or farm.  If
  3  5 relocation of a business or farm operation is not economically
  3  6 feasible, the displaced person may also apply for payment of
  3  7 the loss of existing business relationships because of the
  3  8 inability to relocate the business or farm operation to a
  3  9 location similar in economic advantage to the location from
  3 10 which the business or farm operation was moved.
  3 11    Sec. 5.  Section 364.4, subsection 1, paragraph a,
  3 12 unnumbered paragraph 1, Code 2007, is amended to read as
  3 13 follows:
  3 14    Acquire, hold, and dispose of property outside the city in
  3 15 the same manner as within.  However, the power of a city to
  3 16 acquire property outside the city does not include the power
  3 17 to acquire property outside the city by eminent domain, except
  3 18 if viable alternatives do not exist within the city and the
  3 19 acquisition of the property is necessary for the following,
  3 20 subject to the provisions of chapters 6A and 6B:
  3 21    Sec. 6.  Section 403.7, subsection 1, unnumbered paragraph
  3 22 1, Code 2007, is amended to read as follows:
  3 23    A municipality shall have the right to acquire by
  3 24 condemnation any interest in real property, including a fee
  3 25 simple title thereto, which it may deem necessary for or in
  3 26 connection with an urban renewal project under this chapter,
  3 27 subject to the limitations on eminent domain authority in
  3 28 chapter chapters 6A and 6B.  However, a municipality shall not
  3 29 condemn agricultural land included within an economic
  3 30 development area for any use unless the owner of the
  3 31 agricultural land consents to condemnation or unless the
  3 32 municipality determines that the land is necessary or useful
  3 33 viable alternatives to the condemnation of agricultural land
  3 34 do not exist and the acquisition of the property is necessary
  3 35 for any of the following:
  4  1    Sec. 7.  EFFECTIVE DATE.  This Act, being deemed of
  4  2 immediate importance, takes effect upon enactment and applies
  4  3 to projects or condemnation proceedings pending or commenced
  4  4 on or after that date.
  4  5                           EXPLANATION
  4  6    This bill makes various changes relating to eminent domain
  4  7 authority and the procedure by which eminent domain authority
  4  8 is exercised (condemnation).
  4  9    The bill provides that, prior to making a determination
  4 10 that creation or development of a lake is reasonable and
  4 11 necessary, an acquiring agency must demonstrate by clear and
  4 12 convincing evidence that no other prudent and feasible
  4 13 alternative for provision of a drinking water source exists.
  4 14 The bill also provides that when determining the number of
  4 15 acres necessary for a surface drinking water source, any
  4 16 guidelines or analyses related to future water capacity needs
  4 17 or water capacity needs in time of drought shall be based on
  4 18 the current rate of drinking water usage in the area to be
  4 19 served by the surface drinking water source.  The bill further
  4 20 provides that the analyses and reviews shall be conducted by a
  4 21 registered professional engineer selected by a committee of
  4 22 private landowners affected by the proposed condemnation
  4 23 action, and the acquiring agency shall pay for the services of
  4 24 the engineer.
  4 25    The bill changes the standard of proof from a preponderance
  4 26 of the evidence to clear and convincing evidence for an action
  4 27 brought in district court challenging the exercise of eminent
  4 28 domain authority or contesting condemnation proceedings.
  4 29    The bill adds reasonable attorney fees and reasonable
  4 30 costs, up to $100,000, to the list of expenses reimbursable by
  4 31 an acquiring agency to a property owner.
  4 32    The bill provides that if relocation of a business or farm
  4 33 operation is not economically feasible, the displaced person
  4 34 may apply for payment of the loss of existing business
  4 35 relationships because of the inability to relocate the
  5  1 business or farm operation to a location similar in economic
  5  2 advantage to the location from which the business or farm
  5  3 operation was moved.
  5  4    The bill adds a condition to the circumstances in which a
  5  5 city may condemn land outside the city limits to provide that
  5  6 condemnation may occur if viable alternatives do not exist
  5  7 within the city and the acquisition of the land is necessary
  5  8 for the purposes stated in current law.  The bill also amends
  5  9 urban renewal law relating to the circumstances in which a
  5 10 municipality may condemn agricultural land within an economic
  5 11 development urban renewal area to provide that condemnation
  5 12 may occur if viable alternatives do not exist and the
  5 13 acquisition of the land is necessary for the purposes stated
  5 14 in current law.
  5 15    The bill takes effect upon enactment and applies to
  5 16 projects or condemnation proceedings pending or commenced on
  5 17 or after that date.
  5 18 LSB 5685YH 82
  5 19 sc/rj/8.1