Senate File 2139 - Introduced SENATE FILE 2139 BY SCHNEIDER A BILL FOR An Act relating to the disposition of unused property that was 1 acquired by condemnation and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5359XS (3) 86 md/sc

S.F. 2139 Section 1. Section 6B.56, subsection 4, Code 2016, is 1 amended by striking the subsection. 2 Sec. 2. Section 6B.56A, subsection 4, Code 2016, is amended 3 by striking the subsection. 4 Sec. 3. Section 6B.59, Code 2016, is amended to read as 5 follows: 6 6B.59 Sale of acquired property —— reimbursement to 7 landowner. 8 If an acquiring agency acquires property by condemnation, 9 or by otherwise exercising the power of eminent domain, and 10 that property is later sold by the acquiring agency for more 11 than the acquisition price paid to the landowner, the acquiring 12 agency shall pay to the landowner from whom the property was 13 acquired the difference between the price at which it was 14 acquired and the price at which it was sold by the acquiring 15 agency less the cost of any improvements made to or benefiting 16 the land by the acquiring agency. This section does not apply 17 to property acquired by the state department of transportation. 18 Sec. 4. Section 306.22, subsection 1, Code 2016, is amended 19 to read as follows: 20 1. When title to any tract of land has been or may be 21 acquired for the construction or improvement of any highway by 22 any means other than condemnation , and when in the judgment of 23 the agency in control of the highway, the tract will not be 24 used in connection with or for the improvement, maintenance, 25 or use of the highway, the agency in control of the highway may 26 sell the tract for cash. 27 Sec. 5. Section 306.22, subsection 2, unnumbered paragraph 28 1, Code 2016, is amended to read as follows: 29 The department may contract for the sale of any tract of land 30 described in subsection 1 subject to the following terms and 31 conditions: 32 Sec. 6. Section 306.23, subsections 1 and 2, Code 2016, are 33 amended to read as follows: 34 1. The agency in control of a tract, parcel, or piece of 35 -1- LSB 5359XS (3) 86 md/sc 1/ 3

S.F. 2139 land, or part thereof, which is unused right-of-way shall send 1 by certified mail to the last known address of the present 2 owner of adjacent land from which the tract, parcel, piece of 3 land, or part thereof, was originally purchased or condemned 4 for highway purposes, and to the person who owned the land at 5 the time it was purchased or condemned for highway purposes, 6 notice of the agency’s intent to sell the land, the name and 7 address of any other person to whom a notice was sent, and the 8 fair market value of the real property based upon an appraisal 9 by an independent appraiser. 10 2. The notice shall give an opportunity to the present owner 11 of adjacent property and to the person who owned the land at 12 the time it was purchased or condemned for highway purposes 13 to be heard and make offers within sixty days of the date the 14 notice is mailed for the tract, parcel, or piece of land to be 15 sold. An offer which equals or exceeds in amount any other 16 offer received and which equals or exceeds the fair market 17 value of the property shall be given preference by the agency 18 in control of the land. If no offers are received within sixty 19 days or if no offer equals or exceeds the fair market value 20 of the land, the agency shall transfer the land for a public 21 purpose or proceed with the sale of the property. 22 Sec. 7. Section 306.23, Code 2016, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 4. This section shall not apply to the 25 sale of unused property acquired by condemnation. The sale of 26 unused property acquired by condemnation shall be subject to 27 the requirements of chapter 6B. 28 Sec. 8. Section 331.361, subsection 2, paragraph c, Code 29 2016, is amended to read as follows: 30 c. When unused highway right-of-way is not being sold or 31 transferred to another governmental authority, the county shall 32 comply with the requirements of chapter 6B and section 306.23 . 33 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -2- LSB 5359XS (3) 86 md/sc 2/ 3

S.F. 2139 Sec. 10. APPLICABILITY. This Act applies to the disposition 1 of condemned property occurring on or after the effective date 2 of this Act. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 Code section 6B.56 provides that if all or a portion of 7 real property condemned is not used for the purpose stated in 8 the condemnation application and the acquiring agency seeks 9 to dispose of the unused real property, the acquiring agency 10 shall first offer the unused real property for sale to the 11 prior owner of the condemned property. Additionally, Code 12 section 6B.56A provides that when five years have elapsed since 13 property was condemned and all or a portion of the property 14 has not been used for the purpose stated in the condemnation 15 application, and the acquiring agency has not taken action to 16 dispose of the unused property pursuant to Code section 6B.56, 17 the acquiring agency shall, within 60 days, adopt a resolution 18 reaffirming the purpose for which the unused property will be 19 used or offering the unused property for sale to the prior 20 owner. 21 Under current law, however, Code section 6B.56 does not 22 apply to the sale of unused right-of-way property under Code 23 chapter 306, and Code section 6B.56A does not apply to property 24 acquired for street and highway projects undertaken by a state, 25 county, or a city. This bill strikes both of those exclusions 26 and amends the provisions of Code chapter 306 relating to the 27 sale of unused property that was acquired for use in connection 28 with the construction or improvement of a highway to provide 29 that the sale of unused property acquired by condemnation shall 30 be subject to the requirements of Code chapter 6B. 31 The bill takes effect upon enactment and applies to the 32 disposition of condemned property occurring on or after the 33 effective date of the bill. 34 -3- LSB 5359XS (3) 86 md/sc 3/ 3