SF 2139 (LSB 5359XS (3) 86)

SENATE FILE 2139

BY  SCHNEIDER

A BILL FOR

An Act relating to the disposition of unused property that was acquired by condemnation and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 6B.56, subsection 4, Code 2016, is amended by striking the subsection.
    Sec. 2.  Section 6B.56A, subsection 4, Code 2016, is amended by striking the subsection.
    Sec. 3.  Section 6B.59, Code 2016, is amended to read as follows:
   6B.59  Sale of acquired property —— reimbursement to landowner.
   If an acquiring agency acquires property by condemnation, or by otherwise exercising the power of eminent domain, and that property is later sold by the acquiring agency for more than the acquisition price paid to the landowner, the acquiring agency shall pay to the landowner from whom the property was acquired the difference between the price at which it was acquired and the price at which it was sold by the acquiring agency less the cost of any improvements made to or benefiting the land by the acquiring agency. This section does not apply to property acquired by the state department of transportation.
    Sec. 4.  Section 306.22, subsection 1, Code 2016, is amended to read as follows:
   1.  When title to any tract of land has been or may be acquired for the construction or improvement of any highway by any means other than condemnation, and when in the judgment of the agency in control of the highway, the tract will not be used in connection with or for the improvement, maintenance, or use of the highway, the agency in control of the highway may sell the tract for cash.
    Sec. 5.  Section 306.22, subsection 2, unnumbered paragraph 1, Code 2016, is amended to read as follows:
   The department may contract for the sale of any tract of land described in subsection 1 subject to the following terms and conditions:
    Sec. 6.  Section 306.23, subsections 1 and 2, Code 2016, are amended to read as follows:
   1.  The agency in control of a tract, parcel, or piece of land, or part thereof, which is unused right-of-way shall send by certified mail to the last known address of the present owner of adjacent land from which the tract, parcel, piece of land, or part thereof, was originally purchased or condemned for highway purposes, and to the person who owned the land at the time it was purchased or condemned for highway purposes, notice of the agency’s intent to sell the land, the name and address of any other person to whom a notice was sent, and the fair market value of the real property based upon an appraisal by an independent appraiser.
   2.  The notice shall give an opportunity to the present owner of adjacent property and to the person who owned the land at the time it was purchased or condemned for highway purposes to be heard and make offers within sixty days of the date the notice is mailed for the tract, parcel, or piece of land to be sold. An offer which equals or exceeds in amount any other offer received and which equals or exceeds the fair market value of the property shall be given preference by the agency in control of the land. If no offers are received within sixty days or if no offer equals or exceeds the fair market value of the land, the agency shall transfer the land for a public purpose or proceed with the sale of the property.
    Sec. 7.  Section 306.23, Code 2016, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  This section shall not apply to the sale of unused property acquired by condemnation. The sale of unused property acquired by condemnation shall be subject to the requirements of chapter 6B.
    Sec. 8.  Section 331.361, subsection 2, paragraph c, Code 2016, is amended to read as follows:
   c.  When unused highway right-of-way is not being sold or transferred to another governmental authority, the county shall comply with the requirements of chapter 6B and section 306.23.
    Sec. 9.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 10.  APPLICABILITY.  This Act applies to the disposition of condemned property occurring on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Code section 6B.56 provides that if all or a portion of real property condemned is not used for the purpose stated in the condemnation application and the acquiring agency seeks to dispose of the unused real property, the acquiring agency shall first offer the unused real property for sale to the prior owner of the condemned property. Additionally, Code section 6B.56A provides that when five years have elapsed since property was condemned and all or a portion of the property has not been used for the purpose stated in the condemnation application, and the acquiring agency has not taken action to dispose of the unused property pursuant to Code section 6B.56, the acquiring agency shall, within 60 days, adopt a resolution reaffirming the purpose for which the unused property will be used or offering the unused property for sale to the prior owner.
   Under current law, however, Code section 6B.56 does not apply to the sale of unused right-of-way property under Code chapter 306, and Code section 6B.56A does not apply to property acquired for street and highway projects undertaken by a state, county, or a city. This bill strikes both of those exclusions and amends the provisions of Code chapter 306 relating to the sale of unused property that was acquired for use in connection with the construction or improvement of a highway to provide that the sale of unused property acquired by condemnation shall be subject to the requirements of Code chapter 6B.
   The bill takes effect upon enactment and applies to the disposition of condemned property occurring on or after the effective date of the bill.