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Senate File 58

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  651A.1  WHO MAY BRING ACTION.
  1  2    An action to recover just compensation for an inverse
  1  3 condemnation of private property may be brought by any person
  1  4 having or claiming an interest in the property affected.
  1  5    Sec. 2.  NEW SECTION.  651A.2  DEFINITIONS.
  1  6    As used in this chapter, unless the context otherwise
  1  7 requires:
  1  8    1.  "Constitutional taking" or "taking" means that due to a
  1  9 governmental action, private property is taken in such a
  1 10 manner that compensation to the owner is required by 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.  a.  "Governmental action" means any of the following:
  1 15    (1)  Rules of a state agency adopted pursuant to chapter
  1 16 17A that, if enforced, limit the use of private property.
  1 17    (2)  Proposed or implemented conditions, requirements, or
  1 18 limitations for licenses or permits issued or granted by a
  1 19 state agency which affect the use of private property.
  1 20    (3)  Required dedications or exactions from owners of
  1 21 private property by a state agency.
  1 22    b.  "Governmental action" does not include any of the
  1 23 following:
  1 24    (1)  Activities as to which the power of eminent domain is
  1 25 formally exercised.
  1 26    (2)  The repeal or amendment of rules which results in the
  1 27 discontinuation of government programs or changes to rules
  1 28 which lessen the interference with the use of private
  1 29 property.
  1 30    (3)  Law enforcement activities involving seizure or
  1 31 forfeiture of private property for violations of law or for
  1 32 use as evidence in criminal proceedings.
  1 33    (4)  Orders that are authorized by statute, are issued by a
  1 34 state agency or court, and result from the violation of a
  1 35 state law.
  2  1    (5)  A rule or regulation required to be adopted by the
  2  2 state pursuant to federal law.
  2  3    (6)  A rule, regulation, or requirement adopted by a
  2  4 municipality, as defined by section 670.1.
  2  5    (7)  A rule, regulation, or requirement adopted by a county
  2  6 including, but not limited to, county legislation as provided
  2  7 in section 331.302.
  2  8    (8)  An easement granted for a public purpose, including
  2  9 but not limited to, a utility or public highway, or scenic
  2 10 easement as provided in section 308.4, regardless of whether
  2 11 compensation was paid for the easement.
  2 12    (9)  The reduction or elimination of a benefit directly or
  2 13 indirectly conferred upon a person not relating to the use of
  2 14 property and resulting from a governmental action.
  2 15    3.  "Inverse condemnation" means an action to recover just
  2 16 compensation for a constitutional or regulatory taking of
  2 17 private property.
  2 18    4.  "Private property" means any real property in this
  2 19 state that is owned by a person other than the state, a
  2 20 political subdivision, or other governmental entity and if the
  2 21 property is protected pursuant to either the fifth or
  2 22 fourteenth amendment to the Constitution of the United States,
  2 23 or article I, section 18, of the Constitution of the State of
  2 24 Iowa.
  2 25    5.  "Regulatory taking" means government action that
  2 26 reduces the fair market value of the property affected by the
  2 27 government action by more than fifty percent.
  2 28    Sec. 3.  NEW SECTION.  651A.3  JURISDICTION.
  2 29    An action for inverse condemnation shall be brought in the
  2 30 county where the private property alleged to be affected by
  2 31 government action is located.  The action shall be tried by
  2 32 ordinary proceedings.
  2 33    Sec. 4.  NEW SECTION.  651A.4  VERDICT &endash; SPECIAL.
  2 34    The verdict shall initially indicate whether the plaintiff
  2 35 is entitled to recover for an inverse condemnation of the
  3  1 plaintiff's property.  If the plaintiff is entitled to
  3  2 recover, the verdict shall then indicate the amount of the
  3  3 reduction in the fair market value of the plaintiff's property
  3  4 due to the inverse condemnation and any economic losses
  3  5 sustained by the plaintiff due to the inverse condemnation
  3  6 from the time the government action is taken until suit was
  3  7 brought.
  3  8    Sec. 5.  NEW SECTION.  651A.5  JUDGMENT.
  3  9    1.  If the special verdict indicates the plaintiff is not
  3 10 entitled to recover, the district court shall enter judgment
  3 11 for the defendant.
  3 12    2.  If the special verdict indicates the plaintiff is
  3 13 entitled to recover, the district court shall enter an order
  3 14 acknowledging the special verdict.  Within five days following
  3 15 the entering of the order, the defendant shall file a notice
  3 16 of election with the district court indicating whether or not
  3 17 the defendant will agree to rescind the government action
  3 18 constituting the constitutional or regulatory taking.  If the
  3 19 defendant elects to agree to rescind the government action,
  3 20 the district court shall enter judgment accordingly and award
  3 21 the plaintiff damages equal to the economic loss indicated in
  3 22 the special verdict.  If the defendant does not elect to
  3 23 rescind the government action, the district court shall enter
  3 24 a judgment for damages equal to the reduction in the fair
  3 25 market value of the property.
  3 26    The district court shall order the payment of all costs and
  3 27 reasonable attorney fees to any party successfully
  3 28 establishing an inverse condemnation pursuant to this chapter.
  3 29    Sec. 6.  NEW SECTION.  651A.6  REMEDY NOT EXCLUSIVE.
  3 30    This chapter does not prevent a party from seeking to
  3 31 recover just compensation for a constitutional taking in any
  3 32 other manner allowed by law.
  3 33    Sec. 7.  NEW SECTION.  651A.7  WAIVER OF RIGHTS VOID.
  3 34    An agreement by an individual to waive or otherwise release
  3 35 the individual's rights to benefits or any other rights under
  4  1 this chapter is void.
  4  2    Sec. 8.  NEW SECTION.  651A.8  APPLICABILITY.
  4  3    This chapter applies only to government action adopted or
  4  4 enforced on or after July 1, 1995.  
  4  5                           EXPLANATION
  4  6    This bill establishes a statutory procedure for a person to
  4  7 obtain just compensation for an inverse condemnation of real
  4  8 property.  The bill defines inverse condemnation as state
  4  9 government action that constitutes a taking under the United
  4 10 States or Iowa Constitutions or a taking that results in a
  4 11 reduction in the fair market value of the property affected by
  4 12 more than 50 percent.  Government action is also defined to
  4 13 include regulatory actions by the state.
  4 14    The bill provides that an action for inverse condemnation
  4 15 under this chapter is by ordinary proceedings and shall be
  4 16 brought in the district court of the county where the affected
  4 17 real property is located.  The bill also provides that
  4 18 following trial, a special verdict will be entered indicating
  4 19 whether inverse condemnation occurred, the loss in value of
  4 20 the plaintiff's property, and the economic loss suffered by
  4 21 the plaintiff due to the action.  The state, if the verdict is
  4 22 adverse, then has five days to elect whether or not to agree
  4 23 to rescind the offending government action.  If the defendant
  4 24 agrees to rescind, judgment is entered accordingly and
  4 25 plaintiff is awarded only the economic loss.  If the defendant
  4 26 does not agree to rescind the government action, judgment is
  4 27 entered for the loss in the fair market value of the property.
  4 28    The bill further provides that the remedies under this
  4 29 chapter are not exclusive or waivable for a person aggrieved
  4 30 by an alleged taking and that the bill only applies to
  4 31 government action adopted or enforced on or after July 1,
  4 32 1995.  
  4 33 LSB 1568SV 76
  4 34 da/jw/5
     

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