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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 farm property may be brought by any
1 4 person having an ownership interest in the private farm
1 5 property.
1 6 Sec. 2. NEW SECTION. 651A.2 DEFINITIONS.
1 7 As used in this chapter, unless the context otherwise
1 8 requires:
1 9 1. "Constitutional taking" means that due to a government
1 10 action, private farm property is taken in such a manner that
1 11 compensation to the owner is required by either the fifth or
1 12 fourteenth amendment to the Constitution of the United States,
1 13 or article I, section 18, of the Constitution of the State of
1 14 Iowa.
1 15 2. "Farm operation" means a condition or activity which
1 16 occurs on a farm in connection with the production of
1 17 agricultural commodities, including, but not limited to, the
1 18 raising, harvesting, drying, or storage of crops; the
1 19 maintenance of pasture or grassland; the care or feeding of
1 20 livestock including poultry; the handling or transportation of
1 21 crops or livestock including poultry; the production of eggs
1 22 or milk; the production of fruit or other horticultural crops;
1 23 the treatment or disposal of wastes resulting from livestock;
1 24 the creation of noise, odor, dust, or fumes; the operation of
1 25 machinery and irrigation pumps; ground and aerial seeding and
1 26 spraying; the application of pesticides as defined in section
1 27 206.2; and the employment and use of labor.
1 28 3. a. "Government action" means any of the following:
1 29 (1) Rules of a state agency adopted pursuant to chapter
1 30 17A that, if enforced against private farm property, would
1 31 directly limit the use of private farm property.
1 32 (2) Conditions, requirements, or limitations for licenses
1 33 or permits issued or granted by a state agency which, if
1 34 applied to private farm property, directly limits the use of
1 35 the private farm property.
2 1 (3) Required dedications or exactions from owners of
2 2 private farm property by a state agency.
2 3 b. "Government action" does not include any of the
2 4 following:
2 5 (1) Activities as to which the power of eminent domain is
2 6 formally exercised.
2 7 (2) The repeal or amendment of rules which results in the
2 8 discontinuation of government programs or changes to rules
2 9 which lessen the interference with the use of private farm
2 10 property.
2 11 (3) Law enforcement activities involving seizure or
2 12 forfeiture of private farm property for violations of law or
2 13 for use as evidence in criminal proceedings.
2 14 (4) Orders that are authorized by statute, are issued by a
2 15 state agency or court, and result from the violation of a
2 16 state law.
2 17 (5) A rule or regulation required to be adopted by the
2 18 state pursuant to federal law.
2 19 (6) A rule, regulation, or requirement adopted by a
2 20 municipality, as defined by section 670.1.
2 21 (7) A rule, regulation, or requirement adopted by a county
2 22 including, but not limited to, county legislation as provided
2 23 in section 331.302.
2 24 (8) The sale of private farm property subject to a lien
2 25 held by a governmental entity.
2 26 (9) An action involving private parties which is conducted
2 27 under state law, or enforced by an officer of a governmental
2 28 entity, including but not limited to, a proceeding to enforce
2 29 a debt against private farm property under chapter 624, to
2 30 forfeit a contract to purchase private farm property under
2 31 chapter 656, or to otherwise levy on, execute on, seize, or
2 32 attach private farm property.
2 33 (10) An easement granted pursuant to section 308.4.
2 34 (11) The reduction or elimination of a benefit directly or
2 35 indirectly conferred upon an owner which is not related to the
3 1 use of the private farm property and resulting from a
3 2 government action, including but not limited to, the removal
3 3 of a facility or infrastructure.
3 4 (12) An action which constitutes the exercise of the
3 5 state's police power to prevent a demonstrable harm to the
3 6 public health and safety, including any use of private farm
3 7 property that is structurally unsafe; that constitutes a fire
3 8 hazard; that constitutes a hazard to the public health or
3 9 safety because of inadequate maintenance, dilapidation, or
3 10 abandonment; or that is otherwise dangerous to human life.
3 11 4. "Inverse condemnation" means an action to recover just
3 12 compensation for a constitutional or regulatory taking of
3 13 private farm property.
3 14 5. "Private farm property" means any real property
3 15 suitable for use in a farm operation, including farm
3 16 dwellings, improvements, and buildings or structures
3 17 incidental to farm operations, in this state that is owned by
3 18 a person other than the state, a political subdivision, or
3 19 other governmental entity and if the property is protected
3 20 pursuant to either the fifth or fourteenth amendment to the
3 21 Constitution of the United States, or article I, section 18,
3 22 of the Constitution of the State of Iowa.
3 23 6. "Regulatory taking" means government action that
3 24 reduces the fair market value of the private farm property by
3 25 more than seventy-five percent.
3 26 Sec. 3. NEW SECTION. 651A.3 JURISDICTION.
3 27 An action for inverse condemnation may be brought in the
3 28 district court sitting in the county where the private farm
3 29 property alleged to be subject to an inverse condemnation is
3 30 located. The action shall be tried by ordinary proceedings.
3 31 Sec. 4. NEW SECTION. 651A.4 VERDICT &endash; SPECIAL.
3 32 The verdict shall initially indicate whether the plaintiff
3 33 is entitled to recover for an inverse condemnation of the
3 34 plaintiff's private farm property. If the plaintiff is
3 35 entitled to recover, the verdict shall then indicate the
4 1 amount of the reduction in the fair market value of the
4 2 plaintiff's private farm property due to the inverse
4 3 condemnation and any economic losses sustained by the
4 4 plaintiff due to the inverse condemnation from the time the
4 5 government action is taken until suit was brought. The
4 6 reduction in fair market value shall be shown by specifying
4 7 the fair market value of the plaintiff's private farm property
4 8 prior to or absent the constitutional or regulatory taking and
4 9 by indicating the percentage reduction in value caused by the
4 10 constitutional or regulatory taking.
4 11 Sec. 5. NEW SECTION. 651A.5 JUDGMENT.
4 12 1. If the special verdict indicates the plaintiff is not
4 13 entitled to recover, the district court shall enter judgment
4 14 for the defendant.
4 15 2. If the special verdict indicates the plaintiff is
4 16 entitled to recover, the district court shall enter an order
4 17 acknowledging the special verdict. Within sixty days
4 18 following the expiration of time for appeal or issuance of
4 19 procedendo following appeal, the defendant shall file a notice
4 20 of election with the district court indicating whether or not
4 21 the defendant will agree to rescind the government action
4 22 constituting the constitutional or regulatory taking. If the
4 23 defendant elects to agree to rescind the government action,
4 24 the district court shall enter judgment accordingly. However,
4 25 if the defendant rescinds the government action, the damages
4 26 shall be limited only to the actual and demonstrable economic
4 27 losses incurred by the plaintiff as a result of the government
4 28 action during the period when the government action was in
4 29 effect. If the defendant does not elect to rescind the
4 30 government action, the district court shall enter a judgment
4 31 for damages equal to the percentage reduction in the fair
4 32 market value of the property. In a case where judgment for
4 33 the full fair market value is entered and paid, the defendant
4 34 shall obtain title to the property.
4 35 The district court shall order the defendant or defendants
5 1 to pay all court costs and reasonable attorney fees to any
5 2 party successfully establishing an inverse condemnation
5 3 pursuant to this chapter.
5 4 Sec. 6. NEW SECTION. 651A.6 REMEDY NOT EXCLUSIVE.
5 5 This chapter does not prevent a party from seeking to
5 6 recover just compensation for a constitutional taking in any
5 7 other manner allowed by law.
5 8 Sec. 7. NEW SECTION. 651A.7 APPLICABILITY.
5 9 This chapter applies only to government action adopted or
5 10 enforced on or after July 1, 1996.
5 11 EXPLANATION
5 12 This bill establishes a statutory procedure for a person to
5 13 obtain just compensation for an inverse condemnation of real
5 14 property which is classified as private farm property. The
5 15 bill defines inverse condemnation as state government action
5 16 that constitutes a taking under the United States or Iowa
5 17 constitutions or a regulatory taking that results in a
5 18 reduction in the fair market value of the property affected by
5 19 more than 75 percent. Specifically, government action is
5 20 defined to include rules of a state agency that, if enforced
5 21 against private farm property, would directly limit the use of
5 22 private farm property; conditions, requirements, or
5 23 limitations for licenses or permits issued or granted by a
5 24 state agency which, if applied to private farm property,
5 25 directly limits the use of the private farm property; or
5 26 required dedications or exactions from owners of private farm
5 27 property by a state agency. The bill lists a number of
5 28 specific items which are not considered government action for
5 29 purposes of the bill.
5 30 The bill provides procedures for bringing an action for
5 31 inverse condemnation. The action must be brought in the
5 32 district court of the county where the affected real property
5 33 is located. The bill also provides that following trial, a
5 34 special verdict must be entered indicating whether inverse
5 35 condemnation occurred and the loss in value of the owner's
6 1 property, and the economic loss suffered by the owner. If the
6 2 special verdict indicates the owner is entitled to recover,
6 3 the district court must enter an order acknowledging the
6 4 special verdict. The government has an election to rescind
6 5 the government action. If the government elects to rescind
6 6 the government action, the owner is entitled to damages for
6 7 the economic loss caused by that action. If the government
6 8 does not elect to rescind the government action, the owner is
6 9 entitled to receive damages equal to the reduction in the fair
6 10 market value of the private farm property.
6 11 The bill applies to government action adopted or enforced
6 12 on or after July 1, 1996.
6 13 LSB 4058XS 76
6 14 da/jw/5
Text: SF02145 Text: SF02147 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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