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PAG LIN
1 1 Section 1. NEW SECTION. 6C.1 PRIVATE PROPERTY PROTECTION
1 2 ACT.
1 3 This chapter shall be known and may be cited as the
1 4 "Private Property Protection Act".
1 5 Sec. 2. NEW SECTION. 6C.2 DEFINITIONS.
1 6 As used in this chapter, unless the context otherwise
1 7 requires:
1 8 1. "Constitutional taking" means a governmental action
1 9 that takes real property of an owner to a degree that
1 10 compensation is required to be paid to the owner under either
1 11 the fifth or fourteenth amendment to the Constitution of the
1 12 United States, or Article I, section 18, of the Constitution
1 13 of the State of Iowa.
1 14 2. "Eminent domain" means the authority of the state or
1 15 local governmental entity under Article I, section 18, of the
1 16 Constitution of the State of Iowa, and pursuant to chapter 6A
1 17 or 6B to take private property for the use and benefit of the
1 18 public, and for the condemnation of such private property as
1 19 may be necessary for any public improvement which the state or
1 20 a local governmental entity has authorized to be undertaken.
1 21 3. "Governmental entity" means the following:
1 22 a. The state of Iowa, other than the general assembly or a
1 23 state court, but including any state authority under the
1 24 direction of a principal central department as enumerated in
1 25 section 7E.5.
1 26 b. A local governmental entity, including a political
1 27 subdivision as defined in section 24.48; a city as defined in
1 28 section 362.2; a county as provided in chapter 331; a township
1 29 as provided in chapter 359; a school corporation organized
1 30 under chapter 274; an area education community college; or any
1 31 special purpose district, including a district that provides
1 32 or has authority to provide fire fighting, law enforcement,
1 33 ambulance, medical, or other emergency services.
1 34 4. "Owner" means the person or entity whose name appears
1 35 on the documents of title filed in the official county records
2 1 as the owner of the real property affected by regulatory
2 2 action. However, an "owner" does not include the United
2 3 States government, the state, or a local governmental entity.
2 4 5. "Real property" means land, improvements and fixtures
2 5 attached to the land, and any other property appurtenant to
2 6 the land, if the property is protected under the fifth or
2 7 fourteenth amendment to the Constitution of the United States
2 8 or Article I, section 18, of the Constitution of the State of
2 9 Iowa.
2 10 6. a. "Regulatory action" means any of the following:
2 11 (1) State action which shall be either rules adopted by a
2 12 state agency or orders issued by the state agency pursuant to
2 13 chapter 17A.
2 14 (2) Local action, which shall be an ordinance, motion,
2 15 resolution, amendment, regulation, or rule adopted by a local
2 16 governmental entity including, but not limited to, land use
2 17 planning or zoning requirements as provided in chapters 335,
2 18 352, and 414.
2 19 (3) A required dedication or exaction of rights to or an
2 20 interest in private property from the owner of the private
2 21 property by a governmental entity.
2 22 (4) An improvement to real property for the use and
2 23 benefit of the public which affects the fair market value of
2 24 private property including, but not limited to, the
2 25 construction or erection of infrastructure such as a highway
2 26 or public facility such as a sanitary landfill, infectious
2 27 waste disposal facility, sewage treatment plant, correctional
2 28 institution, or hospital.
2 29 b. "Regulatory action" does not include any of the
2 30 following:
2 31 (1) The exercise of eminent domain, including as provided
2 32 in section 6A.1.
2 33 (2) The repeal or recision of a governmental action,
2 34 including the discontinuance of a program or reduction in
2 35 benefits provided under a program.
3 1 (3) An activity of a law enforcement official which
3 2 involves the seizure or forfeiture of private property for a
3 3 violation of law, including, but not limited to, as provided
3 4 in chapter 809.
3 5 (4) The sale of property subject to a lien held by a
3 6 governmental entity.
3 7 (5) A tax sale conducted pursuant to chapter 446.
3 8 (6) An action involving private parties which is conducted
3 9 under state law, or enforced by an officer of a governmental
3 10 entity, including, but not limited to, a proceeding to enforce
3 11 a debt against real property under chapter 654, to forfeit a
3 12 contract to purchase real property under chapter 656, or to
3 13 otherwise levy on, execute on, seize, or attach real property.
3 14 (7) A requirement, standard, condition, or limitation
3 15 required to be adopted by a governmental entity pursuant to
3 16 federal law.
3 17 (8) An easement granted for a public purpose including,
3 18 but not limited to, a utility or public highway or scenic
3 19 easement as provided in section 308.4, regardless of whether
3 20 compensation was paid for the easement.
3 21 (9) The reduction or elimination of a benefit directly or
3 22 indirectly conferred upon an owner which is not related to the
3 23 use of the property and resulting from a governmental action,
3 24 including, but not limited to, the removal of a facility or
3 25 infrastructure.
3 26 Sec. 3. NEW SECTION. 6C.3 INVERSE CONDEMNATION.
3 27 1. If a governmental entity implements a regulatory action
3 28 which reduces the fair market value of real property to less
3 29 than fifty percent of its fair market value for the uses
3 30 permitted at the time the owner acquired title to the real
3 31 property, or on the effective date of this Act, whichever is
3 32 later, the real property shall be deemed to have been taken
3 33 for the use of the public as an inverse condemnation.
3 34 2. An owner of real property subject to the regulatory
3 35 action may do either of the following:
4 1 a. Require condemnation by and just compensation from the
4 2 governmental entity implementing the action which results in
4 3 reducing the real property's fair market value, by requiring
4 4 the governmental entity to institute eminent domain
4 5 proceedings.
4 6 b. Receive compensation for the reduction in fair market
4 7 value caused by the regulatory action.
4 8 3. The amount in compensation required to be paid to an
4 9 owner under this section shall be the following:
4 10 a. The full fair market value of the interest taken if
4 11 condemnation is required under eminent domain proceedings.
4 12 b. The full amount of the reduction in fair market value
4 13 if compensation for the reduction in fair market value is
4 14 required. The amount paid in compensation shall not be
4 15 limited to the amount by which the reduction in fair market
4 16 value exceeds fifty percent.
4 17 4. The governmental entity shall not require a person to
4 18 waive a provision of this chapter as a condition for approval
4 19 of the use of real property or the issuance of any permit or
4 20 other entitlement. A plaintiff in an action brought under
4 21 this chapter may accept the approval of an authorization, use,
4 22 permit, or other entitlement granted by the governmental
4 23 entity without compromising a right granted under this
4 24 chapter, if either of the following applies:
4 25 a. The governmental entity executes a written reservation
4 26 of rights at the time of acceptance of the authorization, use,
4 27 permit, or other entitlement.
4 28 b. A representative of the governmental entity makes a
4 29 statement at a public meeting at which the governmental entity
4 30 renders its decision to grant an authorization, permit, or
4 31 other entitlement.
4 32 Sec. 4. NEW SECTION. 6C.4 INVERSE CONDEMNATION
4 33 PROCEEDINGS.
4 34 1. Any inverse condemnation action which constitutes the
4 35 exercise of a governmental entity's eminent domain authority
5 1 shall proceed as provided in chapter 6B, unless the owner
5 2 elects to proceed under this section. An inverse condemnation
5 3 action in which the owner is compensated for the reduction in
5 4 fair market value caused by the regulatory action shall
5 5 proceed as provided in this section.
5 6 2. A petition for inverse condemnation under this chapter
5 7 may be filed by the owner in the district court of the county
5 8 in which the property is located. Service on the governmental
5 9 entity shall be by personal service or by certified mail to an
5 10 official which the governmental entity shall designate for
5 11 service.
5 12 3. The court shall make an initial determination whether
5 13 the chapter is applicable to the case. The action shall be
5 14 tried by ordinary proceedings. The determination by a
5 15 governmental entity that a regulatory action is not applicable
5 16 shall not be binding upon the court. The review of a
5 17 governmental entity's determination shall be de novo. The
5 18 court shall enter a verdict which shall indicate whether this
5 19 chapter is applicable to the owner's claim and whether the
5 20 owner is entitled to recover compensation for an inverse
5 21 condemnation as provided in this chapter. If the court
5 22 determines that the chapter is applicable and the owner is
5 23 entitled to recover for an inverse condemnation, the court
5 24 shall conduct a hearing within six months after the notice of
5 25 findings is served in order to determine the amount of
5 26 compensation to award the owner.
5 27 4. The amount of compensation to be paid to an owner as
5 28 provided in this chapter shall, upon the owner's request, be
5 29 determined by a jury. Either party may request that the court
5 30 appoint compensation commissioners selected pursuant to
5 31 section 6B.4 to view the real property subject to the hearing
5 32 for purposes of determining the fair market valuation of the
5 33 property and the amount of compensation required to be paid to
5 34 the owner. The commissioners shall file a written report with
5 35 the court which shall be used as evidence in the proceeding.
6 1 If more than one governmental entity is a party, the jury
6 2 shall determine what percentage of compensation each
6 3 governmental entity must pay to the owner. The court shall
6 4 also award all court costs and reasonable attorney fees to the
6 5 owner establishing an inverse condemnation pursuant to this
6 6 chapter. An owner shall not be dispossessed of the owner's
6 7 real property, including the owner's residence, until the
6 8 court determines that compensation has been paid.
6 9 5. Compensation is not required to be paid to an owner
6 10 under this section if the governmental entity rescinds the
6 11 regulatory action pursuant to section 6C.6. However, the
6 12 governmental entity shall pay the owner the reasonable and
6 13 necessary costs of the inverse condemnation action, including
6 14 reasonable attorney fees, plus any actual and demonstrable
6 15 economic losses caused the owner by the regulatory action
6 16 during the period when the regulatory action was in effect.
6 17 6. This section does not limit the owner from seeking to
6 18 recover just compensation for a constitutional taking by any
6 19 other method allowed by law.
6 20 7. The clerk of the district court shall file with the
6 21 county recorder a copy of the final judgment entry of the
6 22 court showing the amount of damages. The final judgment shall
6 23 be filed with the description of the property subject to
6 24 inverse condemnation. The clerk shall also file a copy of the
6 25 judgment with the county assessor in the county where the land
6 26 is located. If the property is located in a city, the clerk
6 27 shall also file a copy of the judgment with the city assessor.
6 28 An assessor shall reassess the property not later than the
6 29 year following receipt of the copy of the judgment.
6 30 Sec. 5. NEW SECTION. 6C.5 CHAPTER'S APPLICATION &endash;
6 31 STATUTE OF LIMITATIONS &endash; EXCEPTIONS.
6 32 1. a. This chapter shall apply to regulatory actions
6 33 implemented on or after the effective date of this Act. This
6 34 chapter shall also apply to regulatory actions in effect on
6 35 the effective date of this Act which are applied on the
7 1 effective date of this Act to an owner's property.
7 2 b. The statute of limitations for actions brought pursuant
7 3 to this chapter shall be as provided in section 614.1.
7 4 2. This chapter does not preclude an owner from bringing a
7 5 legal challenge to a regulatory action where the regulatory
7 6 action has caused a reduction in the fair market value of the
7 7 property or the use of the property which does not exceed
7 8 fifty percent of the fair market value for uses permitted at
7 9 the time the owner acquired title, or on the effective date of
7 10 this Act, whichever is later. This chapter does not preclude
7 11 a property owner from bringing a legal challenge to a
7 12 regulatory action affected by this chapter based on other
7 13 provisions of law.
7 14 3. This chapter shall not apply if the regulatory action
7 15 is an exercise of the police power to prevent any of the
7 16 following:
7 17 a. A use which is a public or private nuisance, including,
7 18 but not limited to, a violation of chapter 99, or a nuisance
7 19 as provided in chapter 657.
7 20 b. A demonstrable harm to the public health and safety,
7 21 including any use of real property that is a menace to the
7 22 public health, welfare, or safety; that is structurally
7 23 unsafe; that is unsanitary; that constitutes a fire hazard;
7 24 that constitutes a hazard to the public health, welfare, or
7 25 safety because of inadequate maintenance, dilapidation, or
7 26 abandonment; or that is otherwise dangerous to human life.
7 27 Sec. 6. NEW SECTION. 6C.6 REGULATORY RECISION.
7 28 1. If a governmental entity is or may be required to pay
7 29 compensation for inverse condemnation as provided in this
7 30 chapter, the governmental entity may rescind the regulatory
7 31 action, by revoking or repealing the regulatory action which
7 32 affects the owner's real property. The recision must apply to
7 33 all other real property affected by the regulatory action, if
7 34 the owners affected by the regulatory action would have a
7 35 colorable claim for compensation as provided in this chapter.
8 1 The governmental entity may adopt a new regulatory action or
8 2 readopt a previously effective regulatory action in lieu of
8 3 the regulatory action, but subject to the provisions of this
8 4 chapter. A governmental entity may provide as part of a
8 5 regulatory action, that if the regulatory action is rescinded,
8 6 the regulatory action effective immediately prior to the
8 7 adoption of the rescinded regulatory action shall again be
8 8 effective.
8 9 2. A permit, authorization, or other benefit or
8 10 entitlement granted under a regulatory action rescinded
8 11 pursuant to this chapter shall continue to be valid,
8 12 notwithstanding any provision of regulatory action
8 13 subsequently adopted by the governmental entity.
8 14 Sec. 7. NEW SECTION. 6C.7 STATE MANDATE &endash; INAPPLICABLE.
8 15 The application of this chapter shall not be deemed to be a
8 16 state mandate, as provided in chapter 25B.
8 17 Sec. 8. Section 614.1, Code 1995, is amended by adding the
8 18 following new subsection:
8 19 NEW SUBSECTION. 14. REGULATORY ACTION. Those founded,
8 20 either at law or in equity, on the implementation of a
8 21 regulatory action as provided in chapter 6C, within fifteen
8 22 years. The period of limitation shall begin to run upon the
8 23 final administrative decision implementing the regulatory
8 24 action affecting the plaintiff's real property.
8 25 EXPLANATION
8 26 This bill establishes a new chapter referred to as the
8 27 "Private Property Protection Act".
8 28 The chapter applies to an action taken by a state entity,
8 29 including any state authority under the direction of a
8 30 principal central department as enumerated in section 7E.5, or
8 31 a local governmental entity, including a city or county. The
8 32 bill provides that if a governmental entity implements a
8 33 regulatory action which reduces the fair market value of real
8 34 property to less than fifty percent of its fair market value
8 35 for the uses permitted at the time the owner acquired title to
9 1 the real estate, or the effective date of this bill, whichever
9 2 is later, the real property is deemed to have been taken for
9 3 the use of the public as an inverse condemnation.
9 4 The bill provides that the owner may require condemnation
9 5 by and just compensation from the governmental entity
9 6 implementing the regulatory action which results in such a
9 7 reduction in the real property's fair market value, by
9 8 requiring the governmental entity to institute eminent domain
9 9 proceedings, or receive compensation for the reduction in fair
9 10 market value caused by the regulatory action. The amount
9 11 required to be paid to an owner is either the full fair market
9 12 value of the interest taken if condemnation is required under
9 13 eminent domain proceedings, or the full amount of the
9 14 reduction in fair market value if compensation for the
9 15 reduction in fair market value is required.
9 16 The bill provides that an inverse condemnation action which
9 17 constitutes the exercise of a governmental entity's eminent
9 18 domain authority must proceed as provided in chapter 6B,
9 19 unless the owner elects to proceed under the bill's
9 20 provisions. The bill establishes procedures for an inverse
9 21 condemnation proceeding. A petition for inverse condemnation
9 22 under this chapter may be filed by the owner in the district
9 23 court of the county in which the property is located. The
9 24 court must make an initial determination whether the bill's
9 25 provisions are applicable to the case. If the court
9 26 determines that the bill's provisions are applicable, the
9 27 court must conduct a hearing in order to determine the amount
9 28 of compensation to award the owner. The amount must be
9 29 determined, if requested, by a jury. A copy of the judgment
9 30 must be submitted to the county clerk and the county assessor
9 31 in the county where the property is located. If the property
9 32 is located in a city, a copy must also be sent to the city
9 33 assessor. An assessment of the property must be performed not
9 34 later than the next year.
9 35 The bill provides that compensation is not required to be
10 1 paid to an owner, if the governmental entity rescinds the
10 2 regulatory action. However, the governmental entity must pay
10 3 the owner reasonable and necessary costs of the inverse
10 4 condemnation action. The governmental entity may revoke or
10 5 repeal the regulatory action which affects the owner's real
10 6 property. The rescission must apply to all other real
10 7 property affected by the regulatory action. The governmental
10 8 entity may adopt a new regulatory action or readopt a
10 9 previously effective regulatory action.
10 10 The bill provides that the application of the chapter is
10 11 not deemed to be a state mandate.
10 12 LSB 1271YH 76
10 13 da/cf/24.1
Text: HF00581 Text: HF00583 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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