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PAG LIN 1 1 HOUSE FILE 476 1 2 1 3 AN ACT 1 4 RELATING TO THE EXERCISE OF THE POWER OF EMINENT DOMAIN AND 1 5 TO CONDEMNATION PROCEEDINGS AND PROVIDING FOR THE ACT'S 1 6 APPLICABILITY. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. NEW SECTION. 6A.21 CONDEMNATION OF 1 11 AGRICULTURAL LAND DEFINITIONS. 1 12 1. Except as otherwise provided, for purposes of this 1 13 chapter and chapter 6B: 1 14 a. "Agricultural land" means real property owned by a 1 15 person in tracts of ten acres or more and not laid off into 1 16 lots of less than ten acres or divided by streets and alleys 1 17 into parcels of less than ten acres, and that has been used 1 18 for the production of agricultural commodities during three 1 19 out of the past five years. Such use of property includes, 1 20 but is not limited to, the raising, harvesting, handling, 1 21 drying, or storage of crops used for feed, food, seed, or 1 22 fiber; the care or feeding of livestock; the handling or 1 23 transportation of crops or livestock; the storage, treatment, 1 24 or disposal of livestock manure; and the application of 1 25 fertilizers, soil conditioners, pesticides, and herbicides on 1 26 crops. Agricultural land includes land on which is located 1 27 farm residences or outbuildings used for agricultural purposes 1 28 and land on which is located facilities, structures, or 1 29 equipment for agricultural purposes. Agricultural land 1 30 includes land taken out of agricultural production for 1 31 purposes of environmental protection or preservation. 1 32 b. "Private development purposes" means the construction 1 33 of, or improvement related to, recreational trails, 1 34 recreational development paid for primarily with private 1 35 funds, housing and residential development, or commercial or 2 1 industrial enterprise development. 2 2 c. "Public use" or "public purpose" or "public 2 3 improvement" does not include the authority to condemn 2 4 agricultural land for private development purposes unless the 2 5 owner of the agricultural land consents to the condemnation. 2 6 2. The limitation on the definition of public use, public 2 7 purpose, or public improvement does not apply to a slum area 2 8 or blighted area as defined in section 403.17, or to 2 9 agricultural land acquired for industry as that term is 2 10 defined in section 260E.2, or to the establishment, 2 11 relocation, or improvement of a road pursuant to chapter 306, 2 12 or to the establishment of a railway under the supervision of 2 13 the department of transportation as provided in section 2 14 327C.2, or to an airport as defined in section 328.1, or to 2 15 land acquired in order to replace or mitigate land used in a 2 16 road project when federal law requires replacement or 2 17 mitigation. This limitation also does not apply to utilities 2 18 or persons under the jurisdiction of the Iowa utilities board 2 19 in the department of commerce or to any other utility 2 20 conferred the right by statute to condemn private property or 2 21 to otherwise exercise the power of eminent domain. 2 22 Sec. 2. NEW SECTION. 6B.2A NOTICE OF PROPOSED PUBLIC 2 23 IMPROVEMENT. 2 24 1. An acquiring agency shall provide written notification 2 25 to each owner of record of private property that may be the 2 26 subject of condemnation. The authority under this chapter is 2 27 not conferred and condemnation proceedings shall not begin 2 28 unless a good faith effort is made to serve the notice as 2 29 provided in this section on the owner of record of the 2 30 property subject to condemnation. The notice shall be mailed 2 31 by ordinary mail to the owner of record's last known address 2 32 no less than thirty days before adoption of the ordinance, 2 33 resolution, motion, or other declaration of intent to proceed 2 34 with the public improvement and the acquisition or 2 35 condemnation, if necessary, of the property. If the location 3 1 of the public improvement is changed or expanded after the 3 2 decision has been made to proceed with the public improvement, 3 3 a notice shall be mailed by ordinary mail no less than thirty 3 4 days before the adoption of the ordinance, resolution, motion, 3 5 or other declaration of intent to proceed with a change in the 3 6 location of the public improvement to the owner of record of 3 7 the land to be acquired or condemned, if necessary, in the new 3 8 location of the public improvement affected by the change. 3 9 The notice shall include the statement of individual rights 3 10 required under section 6B.2B. The notice shall, at a minimum, 3 11 include the following information: 3 12 a. The general nature of the public improvement. 3 13 b. The acquiring agency's intended use of the private 3 14 property for the public improvement. 3 15 c. The process to be followed by the acquiring agency in 3 16 making the decision to proceed with the public improvement and 3 17 the acquisition or condemnation, if necessary, of the 3 18 property. 3 19 d. The time, place, and manner at which an opportunity is 3 20 provided for public input into the decision to proceed with 3 21 the public improvement and the acquisition or condemnation, if 3 22 necessary, of the property. 3 23 e. The current status in the planning process for the 3 24 public improvement, including meetings held and decisions 3 25 made. 3 26 2. The authority to condemn is not conferred until the 3 27 appropriate authority approves the public improvement, 3 28 including the approval of any permits required by state or 3 29 federal law which permits are necessary for commencement of 3 30 the project. This subsection does not apply to land condemned 3 31 for public improvements undertaken pursuant to section 306.19. 3 32 3. If, after making a good faith effort, an acquiring 3 33 agency is unable to ascertain the owner of record's last known 3 34 address, or the identity of the owner of record is uncertain, 3 35 or the mail is returned as undeliverable or is refused, the 4 1 acquiring agency shall cause a notice to be published once in 4 2 a newspaper of general circulation in the county or city where 4 3 the private property is located. 4 4 Sec. 3. NEW SECTION. 6B.2B ACQUISITION NEGOTIATION 4 5 STATEMENT OF RIGHTS. 4 6 1. The acquiring agency shall make a good faith effort to 4 7 negotiate with the owner to purchase the private property 4 8 before filing an application for condemnation or otherwise 4 9 proceed with the condemnation process. 4 10 2. The acquiring agency shall provide the owner of record 4 11 of the private property with a statement of their individual 4 12 rights to be included with the notice required under section 4 13 6B.2A. The attorney general shall adopt rules pursuant to 4 14 chapter 17A prescribing a statement of rights which may be 4 15 used in substantial form by any person required to provide the 4 16 statement by this section. 4 17 Sec. 4. Section 6B.3, Code 1999, is amended to read as 4 18 follows: 4 19 6B.3 APPLICATION RECORDING NOTICE TIME FOR 4 20 APPRAISEMENT NEW PROCEEDINGS. 4 21 1.SuchThe proceedings shall be instituted by a written 4 22 application filed with the chief judge of the judicial 4 23 district of the county in which the land sought to be 4 24 condemned is located.SaidThe application shall set forth: 4 251a. A description of all the property in the county, 4 26 affected or sought to be condemned, by its congressional 4 27 numbers, in tracts not exceeding one-sixteenth of a section, 4 28 or, if the land consists of lots, by the numbers of the lot 4 29 and block, and plat designation. 4 302b. A plat showing the location of the right-of-way or 4 31 other property sought to be condemned with reference to such 4 32 description. 4 333c. The names of all record owners of the different 4 34 tracts of land sought to be condemned, or otherwise affected 4 35 by such proceedings, and of all record holders of liens and 5 1 encumbrances on such lands; also the place of residence of all 5 2 such persons so far as known to the applicant. 5 34d. The purpose for which condemnation is sought. For 5 4 purposes of section 6B.4A, if condemnation of agricultural 5 5 land is sought by a city or county, or an agency of a city or 5 6 county, for location of an industry as that term is defined in 5 7 section 260E.2, the application shall so state. However, the 5 8 city or county shall not be required to disclose information 5 9 on an industrial prospect with which the city or county is 5 10 currently negotiating. 5 115e. A request for the appointment of a commission to 5 12 appraise the damages. 5 136f. If the damages are to be paid by the state and the 5 14 land to be condemned is within an agricultural area as 5 15 provided in chapter 352, a statement disclosing whether any of 5 16 that land is classified as class I or class II land under the 5 17 United States department of agriculture natural resources 5 18 conservation service land capability classification system 5 19 contained in the agriculture handbook number 210, 1961 edition 5 20 and, if so classified, stating that the class I or class II 5 21 land is reasonably necessary for the work of internal 5 22 improvement for which condemnation is sought. 5 23 g. A showing of the minimum amount of land necessary to 5 24 achieve the public purpose and the amount of land to be 5 25 acquired by condemnation for the public improvement. Any land 5 26 to be acquired by condemnation beyond the necessary minimum to 5 27 complete the project shall be presumed not to be necessary for 5 28 a public use or public purpose unless the applicant can show 5 29 that a substantial need exists for the additional property to 5 30 achieve the public use or public purpose, or that the land in 5 31 question is of little or no value or utility to the owner, or 5 32 that the owner consents to the condemnation. 5 33 h. A statement indicating the efforts made by the 5 34 applicant to negotiate in good faith with the owner to acquire 5 35 the private property sought to be condemned. 6 1 2. The applicant shall mail a copy of the application by 6 2 certified mail to the owner at the owner's last known address 6 3 and to any mortgagee of record at the mortgagee's last known 6 4 address and to any other record lienholder or encumbrancer of 6 5 the land at the lienholder's or encumbrancer's last known 6 6 address. If service of notice by certified mail cannot be 6 7 made in the manner prescribed in this section, the applicant 6 8 shall cause a notice to be published once in a newspaper of 6 9 general circulation in the county. If service of notice is 6 10 made by publication, an affidavit shall be filed with the 6 11 county recorder along with the application. The affidavit 6 12 shall state the reason why service of notice by certified mail 6 13 could not be made, the name of the publication, and the date 6 14 of the publication. Service of notice by publication shall be 6 15 deemed complete on the day of publication. 6 1673. The applicant shall promptly certify that its 6 17 application for condemnation has been approved by the chief 6 18 judge and shall file the original approved application with 6 19 the county recorder in the manner required under section 6 20 6B.37. The county recorder shall file and index the 6 21 application in the record of deeds and preserve the 6 22 application as required by sections 6B.38 and 558.55. The 6 23 filing and indexing constitute constructive notice to all 6 24 parties that a proceeding to condemn the property is pending 6 25 and that the applicant has the right to acquire the property 6 26 from all owners, lienholders, and encumbrancers whose 6 27 interests are of record at the time of the filing. After 6 28 filing and indexing, the county recorder shall file a copy of 6 29 the application with the office of secretary of state. 6 30 PARAGRAPH DIVIDED. When indexed, the proceeding is 6 31 considered pending so as to charge all persons not having an 6 32 interest in the property with notice of its pendency, and 6 33 while pending no interest can be acquired by the third parties 6 34 in the property against the rights of the applicant. If the 6 35 appraisement of damages is not made within one hundred twenty 7 1 days, the proceedings instituted under this section are 7 2 terminated and all rights and interests of the applicant 7 3 arising out of the application for condemnation terminate. 7 4 The applicant may reinstitute a new condemnation proceeding at 7 5 any time. The reinstituted proceedings are entirely new 7 6 proceedings and not a revival of the terminated proceeding. 7 7 Sec. 5. Section 6B.4, unnumbered paragraph 2, Code 1999, 7 8 is amended to read as follows: 7 9 The chief judge of the judicial district shall select by 7 10 lot six persons from the list, two persons who are owner- 7 11 operators of agricultural property when the property to be 7 12 condemned is agricultural property; two persons who are owners 7 13 of city property when the property to be condemned is other 7 14 than agricultural property; and two persons from each of the 7 15 remaining two representative groups, who shall constitute a 7 16 compensation commission to assess the damages to all property 7 17 to be taken by the applicant and located in the county, and 7 18 shall name a chairperson from the persons selected.NoA 7 19 person shall not be selected as a member of the compensation 7 20 commissionselected shall possessif the person possesses any 7 21 interest in the proceeding which would causesuchthe person 7 22 to render a biased decision. The clerk of the district court 7 23 shall send, by ordinary mail, a list of those persons selected 7 24 to the applicant and to the owner of the property at the 7 25 owner's last known address. The list shall be provided prior 7 26 to the mailing, by any party, of a notice of assessment under 7 27 section 6B.8. If the clerk of the district court is unable to 7 28 locate an address for the owner of the property, the list 7 29 shall be published once in a newspaper of general circulation 7 30 in the county. The applicant shall reimburse the clerk of the 7 31 district court for the cost of mailing and publication. 7 32 Sec. 6. Section 6B.4, Code 1999, is amended by adding the 7 33 following new unnumbered paragraph: 7 34 NEW UNNUMBERED PARAGRAPH. A compensation commission 7 35 appointed pursuant to this section is a governmental body as 8 1 defined in section 21.2 and its meetings shall be conducted in 8 2 compliance with chapter 21. Notice published by the sheriff 8 3 pursuant to section 6B.11 shall constitute public notice of 8 4 the meeting pursuant to section 21.4. 8 5 Sec. 7. NEW SECTION. 6B.4A REVIEW OF APPLICATIONS BY 8 6 COMPENSATION COMMISSION. 8 7 1. If a city or county, or an agency of a city or county, 8 8 has filed an application for condemnation of agricultural land 8 9 for industry, the application is subject to review by the 8 10 compensation commission pursuant to this section. 8 11 2. At any time before the thirty-day notice of assessment 8 12 expires pursuant to section 6B.8, a landowner may apply to the 8 13 compensation commission for review of the condemnation 8 14 application to determine whether the use of condemnation is 8 15 necessary for the placement of an industry in the community. 8 16 When reviewing an application, the commission shall consider 8 17 all of the following: 8 18 a. The feasibility of acquiring the agricultural land by 8 19 methods other than condemnation. 8 20 b. The public cost and public benefit from locating the 8 21 industry on the agricultural land. 8 22 c. The ability to adapt the industry development plans to 8 23 avoid the use of condemnation. 8 24 d. The existence of a specific industry to be located on 8 25 the agricultural land. 8 26 e. The amount of agricultural land requested to be 8 27 condemned compared to the total amount of agricultural land 8 28 needed for the project. 8 29 3. The commission shall approve or deny the application 8 30 for condemnation within thirty days of receiving a request to 8 31 review the condemnation application. A majority vote of the 8 32 commission members is necessary to approve or deny a 8 33 condemnation application. The sheriff shall notify the 8 34 landowner and condemner of the commission's determination by 8 35 certified mail. 9 1 4. A determination made by the compensation commission 9 2 pursuant to this section shall be final unless appealed from. 9 3 An appeal must be filed with the district court within thirty 9 4 days of mailing the commission's determination to the 9 5 condemner and the landowner. At the time of appeal, the 9 6 appellant shall give written notice that the appeal has been 9 7 taken to the adverse party, or the adverse party's agent or 9 8 attorney. Notice of an appeal shall be served in the same 9 9 manner as an original notice. The appeal shall be docketed in 9 10 the name of the person appealing and all other interested 9 11 parties to the action shall be defendants. 9 12 5. This section does not apply to condemnation of 9 13 agricultural land if the industry is an eligible business 9 14 under section 15.329 and the department of economic 9 15 development enters into an agreement under section 15.330 with 9 16 the industry. 9 17 6. For purposes of this section, "industry" means the same 9 18 as defined in section 260E.2. 9 19 Sec. 8. Section 6B.7, Code 1999, is amended to read as 9 20 follows: 9 21 6B.7 COMMISSIONERS TO QUALIFY. 9 22 Before proceeding with the assessment all commissioners 9 23 shall qualify by filing with the sheriff a written oath that 9 24 they will to the best of their ability faithfully and 9 25 impartially assesssaiddamages and make a written report 9 26 containing the information used by the commission in assessing 9 27 the damages to the sheriff. The applicant or the owner may 9 28 challenge one commissioner without stating cause. A challenge 9 29 to the appointment of a commissioner must be made to the chief 9 30 judge of the judicial district no less than seventy-two hours 9 31 before the condemnation jury is set to meet. A commissioner 9 32 shall be appointed to fill a vacancy resulting from a 9 33 challenge no less than twenty-four hours before the jury is 9 34 set to meet. 9 35 Sec. 9. Section 6B.8, Code 1999, is amended to read as 10 1 follows: 10 2 6B.8 NOTICE OF ASSESSMENT. 10 3 The applicant, or the owner or any lienholder or 10 4 encumbrancer of any land described in the application, may, at 10 5 any time after the appointment of the commissioners, have the 10 6 damages to the lands of any such owner assessed by giving the 10 7 other party, if a resident of this state,tenthirty days' 10 8 notice, in writing.SuchThe notice shall specify the day and 10 9 the hour when the commissioners will view the premises, and 10 10 shall be personally served in the same manner as original 10 11 notices. If a city or county, or an agency of a city or 10 12 county, is seeking to condemn agricultural land for an 10 13 industry as that term is defined in section 260E.2, the notice 10 14 shall inform the landowner that the landowner may request that 10 15 the compensation commission review the application as provided 10 16 in section 6B.4A. 10 17 Service of the notice to a person not a resident of this 10 18 state shall be by certified mail to the person's last known 10 19 address. At the same time, the applicant shall cause a notice 10 20 to be published once in a newspaper of general circulation in 10 21 the county prior to the day fixed for the appraisement, which 10 22 day shall be at least thirty days after publication. Service 10 23 of notice in this manner shall be deemed complete on the day 10 24 of publication. 10 25 Sec. 10. Section 6B.11, Code 1999, is amended to read as 10 26 follows: 10 27 6B.11 FILING OF NOTICES AND RETURN OF SERVICE. 10 28 Notices, immediately after the service thereof, shall, with 10 29 proper return of service endorsed thereon or attached thereto, 10 30 be filed with the sheriff. The sheriff shall at once cause 10 31 the commissioners to be notified of the day and hour when they 10 32 will be required to proceed with the appraisement. The notice 10 33 to the commissioners shall also be published by the sheriff 10 34 pursuant to section 331.305. 10 35 Sec. 11. Section 6B.12, Code 1999, is amended to read as 11 1 follows: 11 2 6B.12 NOTICETO NONRESIDENTSWHEN RESIDENCE UNKNOWN. 11 3If the owner of such lands or any person interested therein11 4is a nonresident of this state, or ifIf the person's 11 5 residence is unknown after a good faith effort is made to find 11 6 the person's last known address,no demand for the land for11 7the purposes sought shall be necessary, butthe notice 11 8aforesaidrequired in section 6B.8 shall be published insome11 9 a newspaper of general circulation in the countyand of11 10general circulation therein, once each week for at least four 11 11 successive weeks prior to the day fixed for the appraisement, 11 12 which day shall be at least thirty days after the first 11 13 publication of the notice. 11 14 Sec. 12. Section 6B.14, unnumbered paragraph 3, Code 1999, 11 15 is amended to read as follows: 11 16In addition to all other damages provided by law, except11 17moving expenses paid or required to be paid under relocation11 18assistance programs, anAn owner or tenant occupying land 11 19 which is proposed to be acquired by condemnation shall be 11 20 awarded a sum sufficient to remove such owner's or tenant's 11 21 personal property from the land to be acquired, which sum 11 22 shall represent reasonable costs of movingsaidthe personal 11 23 property from thesaidland to be acquired to a point no 11 24 greater thantwenty-fivefifty milestherefrom; but in any 11 25 event,saiddamages awarded under this section for moving 11 26 shall not exceed fivehundredthousand dollars for each owner 11 27 or tenant occupying landsoproposed to be condemned. An 11 28 owner or tenant may apply for an award pursuant to this 11 29 section only if all other damages provided by law have been 11 30 awarded and such amount awarded is insufficient to pay the 11 31 owner's or tenant's reasonable costs of moving. 11 32 Sec. 13. Section 6B.21, Code 1999, is amended to read as 11 33 follows: 11 34 6B.21 APPEALS HOW DOCKETED AND TRIED. 11 35 The appeal shall be docketed in the name of the person 12 1 appealing and all other interested parties to the action shall 12 2 be defendants. In the event the condemner and the condemnee 12 3 appeal, the appeal shall be docketed in the name of the 12 4 appellant which filed the application for condemnation and all 12 5 other parties to the action shall be defendants. The appeal 12 6 shall be tried as in an action by ordinary proceedings.The12 7appraisement of damages by the compensation commission is12 8admissible in the action.12 9 Sec. 14. Section 6B.26, Code 1999, is amended to read as 12 10 follows: 12 11 6B.26 DISPOSSESSION OF OWNER. 12 12 A landowner shall not be dispossessed, under condemnation 12 13 proceedings, of the landowner's residence, dwelling house, 12 14outhouseoutbuildings if the residence or dwelling house is 12 15 also acquired, orchard, or garden, until the damages thereto 12 16 have been finally determined and paid. However, if the 12 17 property described in this section is condemned for highway 12 18 purposes by the state department of transportation, the 12 19 condemning authority may take possession of the property 12 20 either after the damages have been finally determined and paid 12 21 or one hundred eighty days after the compensation commission 12 22 has determined and filed its award, in which event all of the 12 23 appraisement of damages shall be paid to the property owner 12 24 before the dispossession can take place. This section shall 12 25 not apply to condemnation proceedings for drainage or levee 12 26 improvements, or for public school purposes. For the purposes 12 27 of this section, "outbuildings" means structures and 12 28 improvements located in proximity to the landowner's 12 29 residence. 12 30 Sec. 15. Section 6B.33, Code 1999, is amended to read as 12 31 follows: 12 32 6B.33 COSTS AND ATTORNEY FEES. 12 33 The applicant shall pay all costs of the assessment made by 12 34 the commissioners and reasonable attorney fees and costs 12 35 incurred by the condemnee as determined by the commissioners 13 1 if the award of the commissioners exceeds one hundred ten 13 2 percent of the final offer of the applicant prior to 13 3 condemnation. The applicant shall file with the sheriff an 13 4 affidavit setting forth the most recent offer made to the 13 5 person whose property is sought to be condemned. Members of 13 6 such commissions shall receive a per diem of fifty dollars and 13 7 actual and necessary expenses incurred in the performance of 13 8 their official duties. The applicant shall reimburse the 13 9 county sheriff for the per diem and expense amounts paid by 13 10 the sheriff to the members. The applicant shall reimburse the 13 11 owner for the expenses the owner incurred for recording fees, 13 12 penalty costs for full or partial prepayment of any 13 13 preexisting recorded mortgage entered into in good faith 13 14 encumbering the property, and for similar expenses incidental 13 15 to conveying the property to the applicant. The applicant 13 16 shall also pay all costs occasioned by the appeal, including 13 17 reasonable attorney fees to be taxed by the court, unless on 13 18 the trial thereof the same or a less amount of damages is 13 19 awarded than was allowed by the tribunal from which the appeal 13 20 was taken. 13 21 Sec. 16. Section 6B.38, Code 1999, is amended by adding 13 22 the following new unnumbered paragraph: 13 23 NEW UNNUMBERED PARAGRAPH. The county recorder shall file a 13 24 copy of the sheriff's statement required by section 6B.35, 13 25 subsection 5, with the office of the secretary of state. 13 26 Sec. 17. Section 6B.42, Code 1999, is amended to read as 13 27 follows: 13 28 6B.42 EMINENT DOMAIN PAYMENT TO DISPLACED PERSONS. 13 29 1. a. The acquiring agency shall provide to the person, 13 30 in addition to any other sums of money in payment of just 13 31 compensation, the payments and assistance required by law, in 13 32 accordance with chapter 316. 13 33 b. A person aggrieved by a determination made as to 13 34 eligibility for relocation assistance, a payment, or the 13 35 amount of the payment, upon application, may have the matter 14 1 reviewed by the appropriate acquiring agency. 14 2 c. An acquiring agency subject to this section that 14 3 proposes to displace a person shall inform the person of the 14 4 person's right to receive relocation assistance and payments, 14 5 and of an aggrieved person's right to appeal a determination 14 6 as to assistance and payments. 14 71.2. a. A utility or railroad subject to section 327C.2, 14 8 or chapters 476, 478, 479,and479A, and 479B, authorized by 14 9 law to acquire property by condemnation, which acquires the 14 10 property of a person or displaces a person for a program or 14 11 project which has received or will receive federal financial 14 12 assistance as defined in section 316.1, shall provide to the 14 13 person, in addition to any other sums of money in payment of 14 14 just compensation, the payments and assistance required by 14 15 law, in accordance with chapter 316. 14 162.b. A person aggrieved by a determination made by a 14 17 utility as to eligibility for relocation assistance, a 14 18 payment, or the amount of the payment, upon application, may 14 19 have the matter reviewed by the utilities division of the 14 20 department of commerce. 14 213.c. A person aggrieved by a determination made by a 14 22 railroad as to eligibility for relocation assistance, a 14 23 payment, or the amount of the payment, upon application, may 14 24 have the matter reviewed by the state department of 14 25 transportation. 14 264.d. A utility or railroad subject to this section that 14 27 proposes to displace a person shall inform the person of the 14 28 person's right to receive relocation assistance and payments, 14 29 and of an aggrieved person's right to appeal to the utilities 14 30 division of the department of commerce or the state department 14 31 of transportation. 14 32 Sec. 18. Section 6B.45, Code 1999, is amended to read as 14 33 follows: 14 34 6B.45CONDEMNATION FOR ROAD OR STREET MAILING COPY OF 14 35 APPRAISAL. 15 1 When any real property or interestthereinin real property 15 2 is to be purchased, or in lieu thereof to be condemnedfor15 3highway, street or road purposes, thepurchasing state15 4 acquiring agency, county or cityortheirits agent shall 15 5 submit to the person, corporation, or entity whose property or 15 6 interestthereinin the property is to be taken, by ordinary 15 7 mail, at least ten days prior to the date of contact, a copy 15 8 of the appraisal in its entirety upon such real property or 15 9 interestthereinin such real property prepared for the 15 10 acquiring agency or its agent, which shall include, atleasta 15 11 minimum, an itemization of the appraised value of the real 15 12 property or interestthereinin the property, any buildings 15 13thereonon the property, all other improvements including 15 14 fences, severance damages, and loss of access. The appraisal 15 15 sent to the condemnee shall be that appraisal upon which the 15 16 condemnor will rely to establish an amount which the condemnor 15 17 believes to be just compensation for the real property. All 15 18 other appraisals made on the property as a result of the 15 19 condemnation proceeding shall be made available to the 15 20 condemnee upon request. In lieu of an appraisal, a utility or 15 21 person under the jurisdiction of the utilities board of the 15 22 department of commerce, or any other utility conferred the 15 23 right by statute to condemn private property, shall provide in 15 24 writing by certified mail to the owner of record thirty days 15 25 prior to negotiations, the methods and factors used in 15 26 arriving at an offered price for voluntary easements including 15 27 the range of cash amount of each component. 15 28 Sec. 19. Section 6B.54, unnumbered paragraph 1, Code 1999, 15 29 is amended to read as follows: 15 30If aFor any project or displacing activity that has 15 31 received or will receive federal financial assistance as 15 32 defined in section 316.1, for any state-funded projects, or 15 33 for any other public improvement for which condemnation is 15 34 sought, an acquiring agency shallbe guided by, at a minimum, 15 35 satisfy the following policies: 16 1 Sec. 20. Section 6B.54, subsections 2, 3, 8, and 9, Code 16 2 1999, are amended to read as follows: 16 3 2. Real property shall be appraised as required by section 16 4 6B.45 before the initiation of negotiations, and the owner or 16 5 the owner's designated representative shall be given an 16 6 opportunity to accompany at least one appraiser of the 16 7 acquiring agency during an inspection of the property, except 16 8 thatthe state department of transportationan acquiring 16 9 agency may prescribe a procedure to waive the appraisal in 16 10 cases involving the acquisition of property with a low fair 16 11 market value. In lieu of an appraisal, a utility or person 16 12 under the jurisdiction of the utilities board of the 16 13 department of commerce, or any other utility conferred the 16 14 right by statute to condemn private property, shall provide in 16 15 writing by certified mail to the owner of record thirty days 16 16 before negotiations, the methods and factors used in arriving 16 17 at an offered price for voluntary easements including the 16 18 range of cash amount of each component. 16 19 3. Before the initiation of negotiations for real 16 20 property, the acquiring agency shall establish an amount which 16 21 it believes to be just compensation for the real property, and 16 22 shall make a prompt offer to acquire the property for the full 16 23 amount established by the agency. In no event shall the 16 24 amount be less than theagency's approvedlowest appraisal of 16 25 the fair market value of the property. In the case of a 16 26 utility or person under the jurisdiction of the utilities 16 27 board of the department of commerce, or any other utility 16 28 conferred the right by statute to condemn private property, 16 29 the amount shall not be less than the amount indicated by the 16 30 methods and factors used in arriving at an offered price for a 16 31 voluntary easement. 16 32 8. If the acquisition of only a portion of property would 16 33 leave the owner with an uneconomical remnant, thehead of the16 34 acquiring agencyconcernedshall offer to acquire that 16 35 remnant. For the purposes of this chapter, an "uneconomical 17 1 remnant" is a parcel of real property in which the owner is 17 2 left with an interest after the partial acquisition of the 17 3 owner's property, where thehead of theacquiring agency 17 4concerneddetermines that the parcel has little or no value or 17 5 utility to the owner. 17 6 9. A person whose real property is being acquired in 17 7 accordance with this chapter, after the person has been fully 17 8 informed of the person's right to receive just compensation 17 9 for the property, may donate the property, any part of the 17 10 property, any interest in the property, or any compensation 17 11 paid for itto any agencyas the person may determine. 17 12 Sec. 21. Section 6B.55, unnumbered paragraph 1, Code 1999, 17 13 is amended to read as follows: 17 14If aFor any program or project that has received or will 17 15 receive federal financial assistance as defined in section 17 16 316.1, for any state-funded projects, or for any other public 17 17 improvement for which condemnation is sought, an acquiring 17 18 agency shallbe guided byat a minimum satisfy the following 17 19 policies: 17 20 Sec. 22. NEW SECTION. 6B.57 PROCEDURAL COMPLIANCE. 17 21 If a city makes a good faith effort to serve, send, or 17 22 provide the notices or documents required under this chapter 17 23 to the owner of private property that is or may be the subject 17 24 of condemnation, but fails to provide the notice or documents 17 25 to the owner, such failure shall not constitute grounds for 17 26 invalidation of the condemnation proceeding if the chief judge 17 27 of the judicial district determines that such failure can be 17 28 corrected by delaying the condemnation proceedings to allow 17 29 compliance with the requirement and such failure does not 17 30 unreasonably prejudice the owner. 17 31 Sec. 23. NEW SECTION. 6B.58 ACQUIRING AGENCY 17 32 DEFINITION. 17 33 For purposes of this chapter, an "acquiring agency" means 17 34 the state of Iowa or any person or entity conferred the right 17 35 by statute to condemn private property or to otherwise 18 1 exercise the power of eminent domain. 18 2 Sec. 24. NEW SECTION. 6B.59 SALE OF ACQUIRED PROPERTY 18 3 REIMBURSEMENT TO LANDOWNER. 18 4 If an acquiring agency acquires property by condemnation, 18 5 or by otherwise exercising the power of eminent domain, and 18 6 that property is later sold by the acquiring agency for more 18 7 than the acquisition price paid to the landowner, the 18 8 acquiring agency shall pay to the landowner from whom the 18 9 property was acquired the difference between the price at 18 10 which it was acquired and the price at which it was sold by 18 11 the acquiring agency less the cost of any improvements made to 18 12 or benefiting the land by the acquiring agency. This section 18 13 does not apply to property acquired by the Iowa department of 18 14 transportation. 18 15 Sec. 25. NEW SECTION. 9.2A RECORDS RELATING TO 18 16 CONDEMNATION. 18 17 The secretary of state shall receive and preserve in the 18 18 secretary's office all papers transmitted to the secretary in 18 19 relation to condemnation and shall keep an alphabetical list 18 20 of acquiring agencies in a book provided for that purpose, in 18 21 which shall be entered the name of the acquiring agency, the 18 22 county in which the real property is located, and the date the 18 23 condemnation application was filed. 18 24 Sec. 26. Section 306.19, subsection 3, Code 1999, is 18 25 amended to read as follows: 18 26 3. None of the foregoing requirements shall prohibit the 18 27 property owner and the agency from entering into a mutually 18 28 acceptable agreement for the replacement, relocation, 18 29 construction, or maintenance of any alternate driveway on the 18 30 owner's property. Compensation for any property rights taken 18 31 in the establishment of any alternative temporary or permanent 18 32 access shall be paid as in any other purchase or condemnation 18 33 of property. 18 34 Sec. 27. Section 306.19, subsection 4, Code 1999, is 18 35 amended to read as follows: 19 1 4.Compensation for any property rights taken in the19 2establishment of any alternative temporary or permanent access19 3shall be paid as in any other purchase or condemnation of19 4property.Proceedings for the condemnation of land for any 19 5 highway shall be under the provisions of chapter 6A and 19 6 chapter 6B. Provided that, in the condemnation of right-of- 19 7 way for secondary roads that is contiguous to existing road 19 8 right-of-way for the maintenance, safety improvement, or 19 9 upgrade of the existing secondary road, the board of 19 10 supervisors may proceed as provided in sections 306.28 to 19 11 306.37. 19 12 Sec. 28. Section 306.27, Code 1999, is amended to read as 19 13 follows: 19 14 306.27 CHANGES FOR SAFETY, ECONOMY, AND UTILITY. 19 15 The state department of transportation as to primary roads 19 16 and the boards of supervisors as to secondary roads on their 19 17 own motion may change the course of any part of any road or 19 18 stream, watercourse, or dry run and may pond water in order to 19 19 avoid the construction and maintenance of bridges, or to avoid 19 20 grades, or railroad crossings, or to straighten a road, or to 19 21 cut off dangerous corners, turns or intersections on the 19 22 highway, or to widen a road above statutory width, or for the 19 23 purpose of preventing the encroachment of a stream, 19 24 watercourse, or dry run upon the highway. The department and 19 25 the board of supervisors shall conductitstheir proceedings 19 26 in the manner and form prescribed in chapter 6B,andexcept 19 27 that the board of supervisorsshallmay use the form 19 28 prescribed in sections 306.28 to 306.37or as provided in19 29chapter 6Bfor the condemnation of right-of-way that is 19 30 contiguous to existing road right-of-way and necessary for the 19 31 maintenance, safety improvement, or upgrade of the existing 19 32 secondary road. Changes are subject to chapter 455B. 19 33 Sec. 29. Section 306.28, Code 1999, is amended by striking 19 34 the section and inserting in lieu thereof the following: 19 35 306.28 APPRAISERS. 20 1 If the board is unable, by agreement with the owner, to 20 2 acquire the necessary right of way to effect such change, a 20 3 compensation commission shall be selected pursuant to section 20 4 6B.4, to appraise the damages consequent on the taking of the 20 5 right of way. 20 6 Sec. 30. Section 306.29, unnumbered paragraph 2, Code 20 7 1999, is amended to read as follows: 20 8 To whom it may concern: Notice is given that the board of 20 9 supervisors of ........ county, Iowa, propose to condemn for 20 10 road purposes the following described real estate in said 20 11 county: (Here describe the right of way, and the tract or 20 12 tracts from which such right of way will be taken.) The 20 13 damages caused by said condemnation will be assessed bythree20 14appraisersa compensation commission appointed as provided by 20 15 law for the purpose of appraising the damages.Notice is20 16hereby given that the owner or owners of said real estate may,20 17on or before the .. day of ...., appoint one of said20 18appraisers and that in case such right be not exercised, or if20 19exercised and the said appointee fails to appear and qualify,20 20the said three appraisers will be otherwise appointed as20 21provided by law.All parties interested are further notified 20 22 thatsaid three appraisersthe compensation commission will, 20 23 when duly appointed, proceed to appraisesaidthe damages, 20 24 will reportsaidthe appraisement to thesaidboard of 20 25 supervisors and thatsaid latterthe board will pass thereon 20 26 as provided by law, and that at all such times and places you 20 27 may be presentif you be so minded. You are further notified 20 28 that atsaidthe hearing before thesaidsupervisors you may 20 29 file objections to the use ofsaidthe land for road purposes 20 30 and that all such objections not so made will be deemed 20 31 waived. 20 32 .................... 20 33 County Auditor. 20 34 Sec. 31. Section 306.31, Code 1999, is amended to read as 20 35 follows: 21 1 306.31QUALIFICATION ANDASSESSMENT. 21 2Upon the appointment of three appraisers, the county21 3auditor shall cause them to appear before the auditor and to21 4take oath that they will faithfully and impartially assess the21 5damages claimed. SaidThe appraisers shall forthwith proceed 21 6 to the assessment ofsaiddamages and shall make written 21 7 reportthereofof the damages to the board of supervisors. 21 8 Sec. 32. Section 316.1, subsection 5, paragraphs a and b, 21 9 Code 1999, are amended to read as follows: 21 10 a. A person who moves from real property or moves the 21 11 person's personal property from real property ineitherany of 21 12 the following circumstances: 21 13 (1) As a direct result of a written notice of intent to 21 14 acquire, the initiation of negotiations for, or the 21 15 acquisition of, the real property in whole or in part for a 21 16 program or project undertaken with federal financial 21 17 assistance. 21 18 (2) The person moved or moved the person's personal 21 19 property from real property on which the person is either a 21 20 residential tenant or conducts a small business, a farm 21 21 operation, or a business as defined in subsection 2, paragraph 21 22 "d", as a direct result of rehabilitation or demolition for a 21 23 program or project undertaken with federal financial 21 24 assistance in a case in which the head of the displacing 21 25 agency determines that the displacement is permanent. 21 26 (3) As a direct result of a written notice of intent to 21 27 acquire by condemnation, the initiation of negotiations for, 21 28 or the acquisition of, the real property in whole or in part 21 29 by the state of Iowa or by an entity or person conferred the 21 30 right to condemn private property. 21 31 b. For purposes of section 316.4, subsections 1 and 2, and 21 32 section 316.7, a person who moves from real property, or moves 21 33 the person's personal property from real property ineither21 34 any of the following circumstances: 21 35 (1) As a direct result of a written notice of intent to 22 1 acquire, the initiation of negotiations for, or the 22 2 acquisition of, other real property in whole or in part if the 22 3 person conducts a business or farm operation on the other real 22 4 property for a program or project undertaken with federal 22 5 financial assistance. 22 6 (2) As a direct result of rehabilitation or demolition of 22 7 other real property on which the person conducts a business or 22 8 a farm operation for a program or project undertaken with 22 9 federal financial assistance in a case in which the head of 22 10 the displacing agency determines that the displacement is 22 11 permanent. 22 12 (3) As a direct result of a written notice of intent to 22 13 acquire by condemnation, the initiation of negotiations for, 22 14 or the acquisition of, other real property in whole or in part 22 15 by the state of Iowa or by an entity or person conferred the 22 16 right to condemn private property if the person conducts a 22 17 business or farm operation on the other real property. 22 18 Sec. 33. Section 331.304, subsection 8, Code 1999, is 22 19 amended to read as follows: 22 20 8. The power to take private property for public use shall 22 21 only be exercised by counties for public purposes which are 22 22 reasonable and necessary as an incident to the powers and 22 23 duties conferred upon counties, and in accordance with 22 24 chapters 6A and 6B.SectionsSection 306.19and 306.28 to22 25306.37 areis also applicable to condemnation of right of way 22 26 for secondary roads. Sections 306.27 through 306.37 are 22 27 applicable to the condemnation of right of way that is 22 28 contiguous to existing road right of way and necessary for the 22 29 maintenance, safety improvement, or upgrade of the existing 22 30 secondary road. 22 31 Sec. 34. Section 331.602, subsection 24, Code 1999, is 22 32 amended to read as follows: 22 33 24. Record papers, statements, and certificates relating 22 34 to the condemnation of property as provided in section 6B.38, 22 35 and carry out duties related to the filing of certain 23 1 condemnation documents with the office of secretary of state. 23 2 Sec. 35. Section 403.5, subsection 4, Code 1999, is 23 3 amended by adding the following new unnumbered paragraph: 23 4 NEW UNNUMBERED PARAGRAPH. A municipality shall not condemn 23 5 agricultural land included within an economic development area 23 6 unless the owner of the agricultural land consents to 23 7 condemnation or unless the agricultural land is to be acquired 23 8 for industry as that term is defined in section 260E.2. This 23 9 paragraph shall not apply to land necessary or useful for the 23 10 operation of a city utility as defined in section 362.2, for 23 11 the operation of a city franchise conferred the authority to 23 12 condemn private property under section 364.2, or a combined 23 13 utility system as defined in section 384.80. 23 14 Sec. 36. Section 403.7, unnumbered paragraph 1, Code 1999, 23 15 is amended to read as follows: 23 16 A municipality shall have the right to acquire by 23 17 condemnation any interest in real property, including a fee 23 18 simple title thereto, which it may deem necessary for or in 23 19 connection with an urban renewal project under this chapter. 23 20 However, a municipality shall not condemn agricultural land 23 21 included within an economic development area unless the owner 23 22 of the agricultural land consents to condemnation or unless 23 23 the agricultural land is to be acquired for industry as that 23 24 term is defined in section 260E.2. A municipality may 23 25 exercise the power of eminent domain in the manner provided in 23 26 chapter 6B, and Acts amendatory to that chapter or 23 27 supplementary to that chapter, or it may exercise the power of 23 28 eminent domain in the manner now or which may be hereafter 23 29 provided by any other statutory provisions for the exercise of 23 30 the power of eminent domain. Property already devoted to a 23 31 public use may be acquired in like manner. However, real 23 32 property belonging to the state, or any political subdivision 23 33 of this state, shall not be acquired without its consent, and 23 34 real property or any right or interest in the property owned 23 35 by any public utility company, pipeline company, railway or 24 1 transportation company vested with the right of eminent domain 24 2 under the laws of this state, shall not be acquired without 24 3 the consent of the company, or without first securing, after 24 4 due notice to the company and after hearing, a certificate 24 5 authorizing condemnation of the property from the board, 24 6 commission or body having the authority to grant a certificate 24 7 authorizing condemnation. In a condemnation proceeding, if a 24 8 municipality proposes to take a part of a lot or parcel of 24 9 real property, the municipality shall also take the remaining 24 10 part of the lot or parcel if requested by the owner. 24 11 Sec. 37. Section 403.17, Code 1999, is amended by adding 24 12 the following new subsection: 24 13 NEW SUBSECTION. 2A. "Agricultural land" means real 24 14 property owned by a person in tracts of ten acres or more and 24 15 not laid off into lots of less than ten acres or divided by 24 16 streets and alleys into parcels of less than ten acres, and 24 17 that has been used for the production of agricultural 24 18 commodities during three out of the past five years. Such use 24 19 of property includes, but is not limited to, the raising, 24 20 harvesting, handling, drying, or storage of crops used for 24 21 feed, food, seed, or fiber; the care or feeding of livestock; 24 22 the handling or transportation of crops or livestock; the 24 23 storage, treatment, or disposal of livestock manure; and the 24 24 application of fertilizers, soil conditioners, pesticides, and 24 25 herbicides on crops. Agricultural land includes land on which 24 26 is located farm residences or outbuildings used for 24 27 agricultural purposes and land on which is located facilities, 24 28 structures, or equipment for agricultural purposes. 24 29 Agricultural land includes land taken out of agricultural 24 30 production for purposes of environmental protection or 24 31 preservation. 24 32 Sec. 38. Section 403.17, subsection 9, Code 1999, is 24 33 amended to read as follows: 24 34 9. "Economic development area" means an area of a 24 35 municipality designated by the local governing body as 25 1 appropriate for commercial and industrial enterprises, public 25 2 improvements related to housing and residential development, 25 3 or construction of housing and residential development for low 25 4 and moderate income families, including single or multifamily 25 5 housing. If an urban renewal plan for an urban renewal area 25 6 is based upon a finding that the area is an economic 25 7 development area and that no part contains slum or blighted 25 8 conditions, then the division of revenue provided in section 25 9 403.19 and stated in the plan shall be limited to twenty years 25 10 from the calendar year following the calendar year in which 25 11 the city first certifies to the county auditor the amount of 25 12 any loans, advances, indebtedness, or bonds which qualify for 25 13 payment from the division of revenue provided in section 25 14 403.19. Such designated area shall not include agricultural 25 15 land, including land which is part of a century farm, unless 25 16 the owner of the agricultural land or century farm agrees to 25 17 include the agricultural land or century farm in the urban 25 18 renewal area. For the purposes of this subsection, "century 25 19 farm" means a farm in which at least forty acres of such farm 25 20 have been held in continuous ownership by the same family for 25 21 one hundred years or more. 25 22 Sec. 39. Section 543D.3, unnumbered paragraph 2, Code 25 23 1999, is amended to read as follows: 25 24 A person who is not a certified real estate appraiser under 25 25 this chapter may appraise real estate for compensation if 25 26 certification is not required by this chapter or by federal or 25 27 state law, rule, or policy. However, an employee of the state 25 28 department of transportation whose duties include appraisals 25 29 of property pursuant to chapter 6B must be a certified real 25 30 estate appraiser under this chapter. 25 31 Sec. 40. Section 543D.5, subsection 2, paragraph a, Code 25 32 1999, is amended to read as follows: 25 33 a. Require compliance with federal law and appraisal 25 34 standards adopted by federal authorities as they apply to 25 35 federally covered transactions. This paragraph does not 26 1 require that an appraiser invoke a jurisdictional exception to 26 2 the uniform standards of professional appraisal practice in 26 3 order to comply with federal law and appraisal standards 26 4 adopted by federal authorities as they apply to federally 26 5 covered transactions, unless federal law requires that the 26 6 exception be invoked. 26 7 Sec. 41. APPLICABILITY. Sections 1, 35, 36, and 37 of 26 8 this Act, enacting section 6A.21, amending sections 403.5 and 26 9 403.7, and enacting section 403.17, subsection 2A, apply to 26 10 urban renewal areas established before, on, or after the 26 11 effective date of this Act and to amendments to such urban 26 12 renewal areas. 26 13 Section 38 of this Act, amending section 403.17, subsection 26 14 9, applies to urban renewal areas established on or after the 26 15 effective date of this Act. Section 38 of this Act also 26 16 applies to agricultural land included in an urban renewal area 26 17 established before the effective date of this Act if the 26 18 agricultural land is included in the urban renewal area by 26 19 virtue of an amendment to the urban renewal plan, which 26 20 amendment is adopted on or after the effective date of this 26 21 Act. 26 22 Sec. 42. EFFECTIVE DATE. This Act applies to state 26 23 highway construction projects approved for commencement by the 26 24 transportation commission on or after July 1, 1999. This Act 26 25 applies to all other condemnation proceedings in which the 26 26 application for condemnation is filed on or after July 1, 26 27 1999. 26 28 26 29 26 30 26 31 BRENT SIEGRIST 26 32 Speaker of the House 26 33 26 34 26 35 27 1 MARY E. KRAMER 27 2 President of the Senate 27 3 27 4 I hereby certify that this bill originated in the House and 27 5 is known as House File 476, Seventy-eighth General Assembly. 27 6 27 7 27 8 27 9 ELIZABETH ISAACSON 27 10 Chief Clerk of the House 27 11 Approved , 1999 27 12 27 13 27 14 27 15 THOMAS J. VILSACK 27 16 Governor
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