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Senate Study Bill 1019

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  6A.21  CONDEMNATION OF
  1  2 AGRICULTURAL LAND.
  1  3    This section is intended to preserve agricultural land for
  1  4 agricultural production by preventing the condemnation of
  1  5 agricultural land for private development purposes without the
  1  6 consent of the owner.  It is also intended to limit the use of
  1  7 condemnation of any property for private development purposes.
  1  8 It is not intended to prevent the rehabilitation of slum or
  1  9 blighted areas, as defined in section 403.17, within the
  1 10 corporate limits of a city.
  1 11    For purposes of this chapter, "public use" or "public
  1 12 purpose" does not include the condemnation of agricultural
  1 13 land for private improvements unless the owner of the
  1 14 agricultural land consents to the condemnation.  "Agricultural
  1 15 land" means real property that is used for the production of
  1 16 agricultural commodities including, but not limited to, the
  1 17 raising, harvesting, handling, drying, or storage of crops
  1 18 used for feed, food, seed, or fiber; the care or feeding of
  1 19 livestock; the handling or transportation of crops or
  1 20 livestock; the storage, treatment, or disposal of livestock
  1 21 manure; and the application of fertilizers, soil conditioners,
  1 22 pesticides, and herbicides on crops.  "Private development
  1 23 purposes" means the construction of, or improvement related
  1 24 to, recreational development, housing and residential
  1 25 development, or commercial or industrial enterprise
  1 26 development.  This section does not apply to a slum area or
  1 27 blighted area as defined in section 403.17, or to the
  1 28 establishment, relocation, or improvement of a road pursuant
  1 29 to chapter 306, or to an airport as defined in section 328.1.
  1 30    Sec. 2.  NEW SECTION.  6B.2A  NOTICE OF CONDEMNATION.
  1 31    1.  The state of Iowa, or any entity or person conferred
  1 32 the right to condemn private property under section 6A.4,
  1 33 shall provide written notification to each owner of record and
  1 34 each lessee of private property that may be the subject of
  1 35 condemnation.  The authority under this chapter is not
  2  1 conferred and condemnation proceedings shall not begin unless
  2  2 the notice as provided in this section is given to the owner
  2  3 of record and lessee of the private property subject to
  2  4 condemnation.  The notice shall be mailed by ordinary mail no
  2  5 less than thirty days before adoption of the ordinance,
  2  6 resolution, motion, or other declaration of intent to proceed
  2  7 with the public improvement and the acquisition or
  2  8 condemnation, if necessary, of the property.  The notice shall
  2  9 include the statement of individual rights required under
  2 10 section 6B.2B.  The notice shall, at a minimum, include the
  2 11 following information:
  2 12    a.  The general nature of the public improvement.
  2 13    b.  The state's or person's intended use of the private
  2 14 property for the public improvement.
  2 15    c.  The process to be followed by the state or person in
  2 16 making the decision to proceed with the public improvement and
  2 17 the acquisition or condemnation, if necessary, of the
  2 18 property.
  2 19    d.  The time, place, and manner at which an opportunity is
  2 20 provided for public input into the decision to proceed with
  2 21 the public improvement and the acquisition or condemnation, if
  2 22 necessary, of the property.
  2 23    2.  The authority to condemn is not conferred until the
  2 24 appropriate authority approves the public improvement,
  2 25 including the approval of any permits required by state or
  2 26 federal law.
  2 27    Sec. 3.  NEW SECTION.  6B.2B  ACQUISITION NEGOTIATION
  2 28 STATEMENT OF RIGHTS.
  2 29    1.  The state or person conferred the right to take private
  2 30 property for public use shall make a good faith effort to
  2 31 negotiate with the owner to purchase the private property
  2 32 before filing an application for condemnation.
  2 33    2.  The state or person conferred the right to take private
  2 34 property for public use shall provide the owner of record and
  2 35 any lessee of the private property with a statement of their
  3  1 individual rights to be included with the notice required
  3  2 under section 6B.2A.  The attorney general shall adopt rules
  3  3 pursuant to chapter 17A prescribing a statement of rights
  3  4 which may be used in substantial form by any person required
  3  5 to provide the statement by this section.
  3  6    3.  An owner or tenant occupying land which is proposed to
  3  7 be acquired through condemnation, if necessary, shall be
  3  8 awarded a sum sufficient to make the owner or tenant whole as
  3  9 to the owner's or tenant's real property, personal property,
  3 10 and business property and to put the owner or tenant in a
  3 11 substantially similar position as the owner or tenant enjoyed
  3 12 prior to condemnation.
  3 13    Sec. 4.  Section 6B.3, unnumbered paragraph 1, Code 1999,
  3 14 is amended to read as follows:
  3 15    Such The proceedings shall be instituted by a written
  3 16 application filed with the chief judge of the judicial
  3 17 district of the county in which the land sought to be
  3 18 condemned is located.  The applicant shall mail a copy of the
  3 19 application by certified mail to the owner at the owner's last
  3 20 known address and to any mortgagee of record at the
  3 21 mortgagee's last known address and to any other record
  3 22 lienholder or encumbrancer of the land at the lienholder's or
  3 23 encumbrancer's last known address.  Said The application shall
  3 24 set forth:
  3 25    Sec. 5.  Section 6B.3, Code 1999, is amended by adding the
  3 26 following new subsections:
  3 27    NEW SUBSECTION.  6A.  A showing of the minimum amount of
  3 28 land necessary to achieve the public purpose and the amount of
  3 29 land to be acquired by condemnation for the public
  3 30 improvement.  Any land to be acquired by condemnation beyond
  3 31 the necessary minimum to complete the project shall be
  3 32 presumed not to be necessary for a public use or public
  3 33 purpose unless the applicant can show that a substantial need
  3 34 exists for the additional property to achieve the public use
  3 35 or public purpose, or that the land in question is of little
  4  1 or no value or utility to the owner, or that the owner
  4  2 consents to the condemnation.
  4  3    NEW SUBSECTION.  6B.  A statement indicating the efforts
  4  4 made by the applicant to negotiate in good faith with the
  4  5 owner to acquire the private property sought to be condemned.
  4  6 The condemnation shall not proceed until the applicant has
  4  7 made efforts to negotiate in good faith for the acquisition of
  4  8 the property.
  4  9    Sec. 6.  Section 6B.4, unnumbered paragraph 2, Code 1999,
  4 10 is amended to read as follows:
  4 11    The chief judge of the judicial district shall select by
  4 12 lot six persons from the list, two persons who are owner-
  4 13 operators of agricultural property when the property to be
  4 14 condemned is agricultural property; two persons who are owners
  4 15 of city property when the property to be condemned is other
  4 16 than agricultural property; and two persons from each of the
  4 17 remaining two representative groups, who shall constitute a
  4 18 compensation commission to assess the damages to all property
  4 19 to be taken by the applicant and located in the county, and
  4 20 shall name a chairperson from the persons selected.  No A
  4 21 person shall not be selected as a member of the compensation
  4 22 commission selected shall possess if the person possesses any
  4 23 interest in the proceeding which would cause such the person
  4 24 to render a biased decision.  A list of those persons selected
  4 25 shall be provided by regular mail to the applicant and to the
  4 26 owner of the property at the owner's last known address.  The
  4 27 list shall be provided prior to the mailing, by any party, of
  4 28 a notice of assessment under section 6B.8.
  4 29    Sec. 7.  Section 6B.7, Code 1999, is amended to read as
  4 30 follows:
  4 31    6B.7  COMMISSIONERS TO QUALIFY.
  4 32    Before proceeding with the assessment all commissioners
  4 33 shall qualify by filing with the sheriff a written oath that
  4 34 they will to the best of their ability faithfully and
  4 35 impartially assess said damages and make a written report to
  5  1 the sheriff.  The applicant or the owner may challenge the
  5  2 impartiality of any commissioner who may be dismissed for
  5  3 cause and may dismiss one commissioner without stating cause.
  5  4    Sec. 8.  Section 6B.8, Code 1999, is amended to read as
  5  5 follows:
  5  6    6B.8  NOTICE OF ASSESSMENT.
  5  7    The applicant, or the owner or any lienholder or
  5  8 encumbrancer of any land described in the application, may, at
  5  9 any time after the appointment of the commissioners, have the
  5 10 damages to the lands of any such owner assessed by giving the
  5 11 other party, if a resident of this state, ten days' notice, in
  5 12 writing.  Service of the notice to a person not a resident of
  5 13 this state shall be by certified mail to the person's last
  5 14 known address.  Such notice shall specify the day and the hour
  5 15 when the commissioners will view the premises, and be served
  5 16 in the same manner as original notices.
  5 17    Sec. 9.  Section 6B.12, Code 1999, is amended to read as
  5 18 follows:
  5 19    6B.12  NOTICE TO NONRESIDENTS WHEN RESIDENCE UNKNOWN.
  5 20    If the owner of such lands or any person interested therein
  5 21 is a nonresident of this state, or if If the person's
  5 22 residence is unknown, no demand for the land for the purposes
  5 23 sought shall be necessary, but the notice aforesaid required
  5 24 in section 6B.8 shall be published in some a newspaper of
  5 25 general circulation in the county and of general circulation
  5 26 therein, once each week for at least four successive weeks
  5 27 prior to the day fixed for the appraisement, which day shall
  5 28 be at least thirty days after the first publication of the
  5 29 notice.
  5 30    Sec. 10.  Section 6B.14, unnumbered paragraph 3, Code 1999,
  5 31 is amended to read as follows:
  5 32    In addition to all other damages provided by law, except
  5 33 moving expenses paid or required to be paid under relocation
  5 34 assistance programs, an owner or tenant occupying land which
  5 35 is proposed to be acquired by condemnation shall be awarded a
  6  1 sum sufficient to remove such owner's or tenant's personal
  6  2 property from the land to be acquired, which sum shall
  6  3 represent reasonable costs of moving said the personal
  6  4 property from the said land to be acquired to a point no
  6  5 greater than twenty-five three hundred miles therefrom; but in
  6  6 any event, said damages for moving shall not exceed five
  6  7 hundred thousand dollars for each owner or tenant occupying
  6  8 land so proposed to be condemned.
  6  9    Sec. 11.  Section 6B.18, Code 1999, is amended to read as
  6 10 follows:
  6 11    6B.18  NOTICE OF APPRAISEMENT – APPEAL OF AWARD.
  6 12    After the appraisement of damages has been delivered to the
  6 13 sheriff by the compensation commission, the sheriff shall give
  6 14 written notice, by ordinary certified mail, to the condemner
  6 15 and the condemnee of the date on which the appraisement of
  6 16 damages was made, the amount of the appraisement, and that any
  6 17 interested party may, within thirty days from the date of
  6 18 mailing receipt of the notice of the appraisement of damages,
  6 19 appeal to the district court.  The sheriff shall endorse the
  6 20 date of mailing of notice upon the original appraisement of
  6 21 damages.  At the time of appeal, the appellant shall give
  6 22 written notice that the appeal has been taken to the adverse
  6 23 party, or the adverse party's agent or attorney, lienholders,
  6 24 and the sheriff.
  6 25    Sec. 12.  Section 6B.26, Code 1999, is amended to read as
  6 26 follows:
  6 27    6B.26  DISPOSSESSION OF OWNER.
  6 28    A landowner shall not be dispossessed, under condemnation
  6 29 proceedings, of the landowner's residence, dwelling house,
  6 30 outhouse outbuildings, orchard, or garden, until the damages
  6 31 thereto have been finally determined and paid.  However, if
  6 32 the property described in this section is condemned for
  6 33 highway purposes by the state department of transportation,
  6 34 the condemning authority may take possession of the property
  6 35 either after the damages have been finally determined and paid
  7  1 or one hundred eighty days after the compensation commission
  7  2 has determined and filed its award, in which event all of the
  7  3 appraisement of damages shall be paid to the property owner
  7  4 before the dispossession can take place.  This section shall
  7  5 not apply to condemnation proceedings for drainage or levee
  7  6 improvements, or for public school purposes.
  7  7    Sec. 13.  Section 6B.33, Code 1999, is amended to read as
  7  8 follows:
  7  9    6B.33  COSTS AND ATTORNEY FEES.
  7 10    The applicant shall pay all costs of the assessment made by
  7 11 the commissioners and reasonable attorney fees and costs
  7 12 incurred by the condemnee as determined by the commissioners
  7 13 if the award of the commissioners exceeds one hundred ten
  7 14 percent of the final offer of the applicant prior to
  7 15 condemnation.  The applicant shall file with the sheriff an
  7 16 affidavit setting forth the most recent offer made to the
  7 17 person whose property is sought to be condemned.  Members The
  7 18 applicant shall pay to the members of such commissions shall
  7 19 receive a per diem of fifty dollars and actual and necessary
  7 20 expenses incurred in the performance of their official duties.
  7 21 The applicant shall reimburse the owner for the expenses the
  7 22 owner incurred for recording fees, transfer taxes, penalty
  7 23 costs for full or partial prepayment of any preexisting
  7 24 recorded mortgage entered into in good faith encumbering the
  7 25 property, and for similar expenses incidental to conveying the
  7 26 property to the applicant.  The applicant shall also pay all
  7 27 costs occasioned by the appeal, including reasonable attorney
  7 28 fees to be taxed by the court, unless on the trial thereof the
  7 29 same or a less amount of damages is awarded than was allowed
  7 30 by the tribunal from which the appeal was taken.
  7 31    Sec. 14.  Section 6B.42, Code 1999, is amended to read as
  7 32 follows:
  7 33    6B.42  EMINENT DOMAIN – PAYMENT TO DISPLACED PERSONS.
  7 34    1.  a.  The state of Iowa or any entity or person conferred
  7 35 the right to condemn private property under section 6A.4 shall
  8  1 provide to the person, in addition to any other sums of money
  8  2 in payment of just compensation, the payments and assistance
  8  3 required by law, in accordance with chapter 316.
  8  4    b.  A person aggrieved by a determination made as to
  8  5 eligibility for relocation assistance, a payment, or the
  8  6 amount of the payment, upon application, may have the matter
  8  7 reviewed by the appropriate agency of the condemning
  8  8 authority.
  8  9    c.  A condemning authority subject to this section that
  8 10 proposes to displace a person shall inform the person of the
  8 11 person's right to receive relocation assistance and payments,
  8 12 and of an aggrieved person's right to appeal a determination
  8 13 as to assistance and payments.
  8 14    1. 2.  a.  A utility or railroad subject to section 327C.2,
  8 15 or chapters 476, 478, 479, and 479A, and 479B, authorized by
  8 16 law to acquire property by condemnation, which acquires the
  8 17 property of a person or displaces a person for a program or
  8 18 project which has received or will receive federal financial
  8 19 assistance as defined in section 316.1, shall provide to the
  8 20 person, in addition to any other sums of money in payment of
  8 21 just compensation, the payments and assistance required by
  8 22 law, in accordance with chapter 316.
  8 23    2. b.  A person aggrieved by a determination made by a
  8 24 utility as to eligibility for relocation assistance, a
  8 25 payment, or the amount of the payment, upon application, may
  8 26 have the matter reviewed by the utilities division of the
  8 27 department of commerce.
  8 28    3. c.  A person aggrieved by a determination made by a
  8 29 railroad as to eligibility for relocation assistance, a
  8 30 payment, or the amount of the payment, upon application, may
  8 31 have the matter reviewed by the state department of
  8 32 transportation.
  8 33    4. d.  A utility or railroad subject to this section that
  8 34 proposes to displace a person shall inform the person of the
  8 35 person's right to receive relocation assistance and payments,
  9  1 and of an aggrieved person's right to appeal to the utilities
  9  2 division of the department of commerce or the state department
  9  3 of transportation.
  9  4    Sec. 15.  Section 6B.45, Code 1999, is amended to read as
  9  5 follows:
  9  6    6B.45  CONDEMNATION FOR ROAD OR STREET – MAILING COPY OF
  9  7 APPRAISAL.
  9  8    When any real property or interest therein in real property
  9  9 is to be purchased, or in lieu thereof to be condemned for
  9 10 highway, street or road purposes, the purchasing state agency,
  9 11 county, or city, or their its agent shall submit to the
  9 12 person, corporation, or entity whose property or interest
  9 13 therein in the property is to be taken, by ordinary mail, at
  9 14 least ten days prior to the date of contact, a copy of the
  9 15 appraisal all appraisals in their entirety upon such real
  9 16 property or interest therein in such real property prepared
  9 17 for the purchasing state agency, county, or city, or its
  9 18 agent, which shall include, at least a minimum, an itemization
  9 19 of the appraised value of the real property or interest
  9 20 therein in the property, any buildings thereon on the
  9 21 property, all other improvements including fences, severance
  9 22 damages and loss of access.
  9 23    Sec. 16.  Section 6B.54, unnumbered paragraph 1, Code 1999,
  9 24 is amended to read as follows:
  9 25    If a For any project or displacing activity that has
  9 26 received or will receive federal financial assistance as
  9 27 defined in section 316.1, for any state-funded projects, or
  9 28 for any other public improvement for which condemnation is
  9 29 sought, an acquiring state agency, county, or city shall be
  9 30 guided by the following policies:
  9 31    Sec. 17.  Section 6B.54, subsections 2, 3, 8, and 9, Code
  9 32 1999, are amended to read as follows:
  9 33    2.  Real property shall be appraised as required by section
  9 34 6B.45 before the initiation of negotiations, and the owner or
  9 35 the owner's designated representative shall be given an
 10  1 opportunity to accompany at least one appraiser of the
 10  2 acquiring agency during an inspection of the property, except
 10  3 that the state department of transportation a state agency,
 10  4 county, or city may prescribe a procedure to waive the
 10  5 appraisal in cases involving the acquisition of property with
 10  6 a low fair market value.
 10  7    3.  Before the initiation of negotiations for real
 10  8 property, the acquiring state agency, county, or city shall
 10  9 establish an amount which it believes to be just compensation
 10 10 for the real property, and shall make a prompt offer to
 10 11 acquire the property for the full amount established by the
 10 12 agency.  In no event shall the amount be less than the
 10 13 agency's approved lowest appraisal of the fair market value of
 10 14 the property.
 10 15    8.  If the acquisition of only a portion of property would
 10 16 leave the owner with an uneconomical remnant, the head of the
 10 17 acquiring state agency concerned, county, or city shall offer
 10 18 to acquire that remnant.  For the purposes of this chapter, an
 10 19 "uneconomical remnant" is a parcel of real property in which
 10 20 the owner is left with an interest after the partial
 10 21 acquisition of the owner's property, where the head of the
 10 22 acquiring state agency concerned, county, or city determines
 10 23 that the parcel has little or no value or utility to the
 10 24 owner.
 10 25    9.  A person whose real property is being acquired in
 10 26 accordance with this chapter, after the person has been fully
 10 27 informed of the person's right to receive just compensation
 10 28 for the property, may donate the property, any part of the
 10 29 property, any interest in the property, or any compensation
 10 30 paid for it to any agency as the person may determine.
 10 31    Sec. 18.  Section 6B.54, subsection 10, unnumbered
 10 32 paragraph 1, Code 1999, is amended to read as follows:
 10 33    As soon as practicable after the date of payment of the
 10 34 purchase price or the date of deposit in court of funds to
 10 35 satisfy the award of compensation in a condemnation proceeding
 11  1 to acquire real property, whichever is earlier, the acquiring
 11  2 state agency, county, or city shall reimburse the owner, to
 11  3 the extent the acquiring state agency, county, or city deems
 11  4 fair and reasonable, for expenses the owner necessarily
 11  5 incurred for all of the following:
 11  6    Sec. 19.  Section 6B.55, unnumbered paragraph 1, Code 1999,
 11  7 is amended to read as follows:
 11  8    If a For any program or project that has received or will
 11  9 receive federal financial assistance as defined in section
 11 10 316.1, for any state-funded projects, or for any other public
 11 11 improvement for which condemnation is sought, an acquiring
 11 12 state agency, county, or city shall be guided by the following
 11 13 policies:
 11 14    Sec. 20.  Section 6B.55, subsection 1, Code 1999, is
 11 15 amended to read as follows:
 11 16    1.  If an interest in real property is acquired, the
 11 17 acquiring state agency, county, or city shall acquire an equal
 11 18 interest in all buildings, structures, or other improvements
 11 19 located upon the real property which are required to be
 11 20 removed from the real property or which are determined to be
 11 21 adversely affected by the use to which the real property will
 11 22 be put.
 11 23    Sec. 21.  Section 306.19, subsection 3, Code 1999, is
 11 24 amended to read as follows:
 11 25    3.  None of the foregoing requirements shall prohibit the
 11 26 property owner and the agency from entering into a mutually
 11 27 acceptable agreement for the replacement, relocation,
 11 28 construction, or maintenance of any alternate driveway on the
 11 29 owner's property.  Compensation for any property rights taken
 11 30 in the establishment of any alternative temporary or permanent
 11 31 access shall be paid as in any other purchase or condemnation
 11 32 of property.
 11 33    Sec. 22.  Section 306.19, subsection 4, Code 1999, is
 11 34 amended to read as follows:
 11 35    4.  Compensation for any property rights taken in the
 12  1 establishment of any alternative temporary or permanent access
 12  2 shall be paid as in any other purchase or condemnation of
 12  3 property.  Proceedings for the condemnation of land for any
 12  4 highway shall be under the provisions of chapter 6A and
 12  5 chapter 6B.  Provided that, in the condemnation of right-of-
 12  6 way for secondary roads, the board of supervisors may proceed
 12  7 as provided in sections 306.28 to 306.37.
 12  8    Sec. 23.  Section 306.27, Code 1999, is amended to read as
 12  9 follows:
 12 10    306.27  CHANGES FOR SAFETY, ECONOMY, AND UTILITY.
 12 11    The state department of transportation as to primary roads
 12 12 and the boards of supervisors as to secondary roads on their
 12 13 own motion may change the course of any part of any road or
 12 14 stream, watercourse, or dry run and may pond water in order to
 12 15 avoid the construction and maintenance of bridges, or to avoid
 12 16 grades, or railroad crossings, or to straighten a road, or to
 12 17 cut off dangerous corners, turns or intersections on the
 12 18 highway, or to widen a road above statutory width, or for the
 12 19 purpose of preventing the encroachment of a stream,
 12 20 watercourse or dry run upon the highway.  The department and
 12 21 the board of supervisors shall conduct its their proceedings
 12 22 in the manner and form prescribed in chapter 6B, and the board
 12 23 of supervisors shall use the form prescribed in sections
 12 24 306.28 to 306.37 or as provided in chapter 6B.  Changes are
 12 25 subject to chapter 455B.
 12 26    Sec. 24.  Section 316.1, subsection 5, paragraphs a and b,
 12 27 Code 1999, are amended to read as follows:
 12 28    a.  A person who moves from real property or moves the
 12 29 person's personal property from real property in either any of
 12 30 the following circumstances:
 12 31    (1)  As a direct result of a written notice of intent to
 12 32 acquire, the initiation of negotiations for, or the
 12 33 acquisition of, the real property in whole or in part for a
 12 34 program or project undertaken with federal financial
 12 35 assistance.
 13  1    (2)  The person moved or moved the person's personal
 13  2 property from real property on which the person is either a
 13  3 residential tenant or conducts a small business, a farm
 13  4 operation, or a business as defined in subsection 2, paragraph
 13  5 "d", as a direct result of rehabilitation or demolition for a
 13  6 program or project undertaken with federal financial
 13  7 assistance in a case in which the head of the displacing
 13  8 agency determines that the displacement is permanent.
 13  9    (3)  As a direct result of a written notice of intent to
 13 10 acquire, the initiation of negotiations for, or the
 13 11 acquisition of, the real property in whole or in part by the
 13 12 state of Iowa or by an entity or person conferred the right to
 13 13 condemn private property.
 13 14    b.  For purposes of section 316.4, subsections 1 and 2, and
 13 15 section 316.7, a person who moves from real property, or moves
 13 16 the person's personal property from real property in either
 13 17 any of the following circumstances:
 13 18    (1)  As a direct result of a written notice of intent to
 13 19 acquire, the initiation of negotiations for, or the
 13 20 acquisition of, other real property in whole or in part if the
 13 21 person conducts a business or farm operation on the other real
 13 22 property for a program or project undertaken with federal
 13 23 financial assistance.
 13 24    (2)  As a direct result of rehabilitation or demolition of
 13 25 other real property on which the person conducts a business or
 13 26 a farm operation for a program or project undertaken with
 13 27 federal financial assistance in a case in which the head of
 13 28 the displacing agency determines that the displacement is
 13 29 permanent.
 13 30    (3)  As a direct result of a written notice of intent to
 13 31 acquire, the initiation of negotiations for, or the
 13 32 acquisition of, other real property in whole or in part by the
 13 33 state of Iowa or by an entity or person conferred the right to
 13 34 condemn private property if the person conducts a business or
 13 35 farm operation on the other real property.
 14  1    Sec. 25.  Section 331.304, subsection 8, Code 1999, is
 14  2 amended to read as follows:
 14  3    8.  The power to take private property for public use shall
 14  4 only be exercised by counties for public purposes which are
 14  5 reasonable and necessary as an incident to the powers and
 14  6 duties conferred upon counties, and in accordance with
 14  7 chapters 6A and 6B.  Sections Section 306.19 and 306.28 to
 14  8 306.37 are is also applicable to condemnation of right of way
 14  9 for secondary roads.
 14 10    Sec. 26.  Section 331.502, subsection 25, Code 1999, is
 14 11 amended to read as follows:
 14 12    25.  Carry out duties relating to the establishment,
 14 13 alteration, and vacation of public highways as provided in
 14 14 sections 306.21, 306.25, 306.29 to 306.31, 306.37, and 306.40.
 14 15    Sec. 27.  Section 403.5, subsection 4, Code 1999, is
 14 16 amended by adding the following new unnumbered paragraph:
 14 17    NEW UNNUMBERED PARAGRAPH.  A municipality shall not condemn
 14 18 agricultural land included within an economic development area
 14 19 unless the owner of the agricultural land consents to
 14 20 condemnation.
 14 21    Sec. 28.  Section 403.7, Code 1999, is amended to read as
 14 22 follows:
 14 23    403.7  CONDEMNATION OF PROPERTY.
 14 24    A municipality shall have the right to acquire by
 14 25 condemnation any interest in real property, including a fee
 14 26 simple title thereto, which it may deem necessary for or in
 14 27 connection with an urban renewal project under this chapter.
 14 28 However, a municipality shall not condemn agricultural land
 14 29 included within an economic development area unless the owner
 14 30 of the agricultural land consents to condemnation.
 14 31    The prohibition contained in this section on the
 14 32 condemnation of agricultural land in an economic development
 14 33 area without the consent of the owner is intended to limit
 14 34 condemnation of agricultural land in order to protect land
 14 35 used for an agricultural purpose but is not intended to
 15  1 prevent the rehabilitation of slum or blighted areas, as
 15  2 defined in section 403.17, within the corporate limits of a
 15  3 city.  A municipality may exercise the power of eminent domain
 15  4 in the manner provided in chapter 6B, and Acts amendatory to
 15  5 that chapter or supplementary to that chapter, or it may
 15  6 exercise the power of eminent domain in the manner now or
 15  7 which may be hereafter provided by any other statutory
 15  8 provisions for the exercise of the power of eminent domain.
 15  9 Property already devoted to a public use may be acquired in
 15 10 like manner.  However, real property belonging to the state,
 15 11 or any political subdivision of this state, shall not be
 15 12 acquired without its consent, and real property or any right
 15 13 or interest in the property owned by any public utility
 15 14 company, pipeline company, railway or transportation company
 15 15 vested with the right of eminent domain under the laws of this
 15 16 state, shall not be acquired without the consent of the
 15 17 company, or without first securing, after due notice to the
 15 18 company and after hearing, a certificate authorizing
 15 19 condemnation of the property from the board, commission or
 15 20 body having the authority to grant a certificate authorizing
 15 21 condemnation.  In a condemnation proceeding, if a municipality
 15 22 proposes to take a part of a lot or parcel of real property,
 15 23 the municipality shall also take the remaining part of the lot
 15 24 or parcel if requested by the owner.
 15 25    Sec. 29.  Section 403.17, Code 1999, is amended by adding
 15 26 the following new subsection:
 15 27    NEW SUBSECTION.  2A.  "Agricultural land" means real
 15 28 property that is used for the production of agricultural
 15 29 commodities including, but not limited to, the raising,
 15 30 harvesting, handling, drying, or storage of crops used for
 15 31 feed, food, seed, or fiber; the care of feeding of livestock;
 15 32 the handling or transportation of crops or livestock; the
 15 33 storage, treatment, or disposal of livestock manure; and the
 15 34 application of fertilizers, soil conditioners, pesticides, and
 15 35 herbicides on crops.
 16  1    Sec. 30.  Section 403.17, subsection 9, Code 1999, is
 16  2 amended to read as follows:
 16  3    9.  "Economic development area" means an area of a
 16  4 municipality designated by the local governing body as
 16  5 appropriate for commercial and industrial enterprises, public
 16  6 improvements related to housing and residential development,
 16  7 or construction of housing and residential development for low
 16  8 and moderate income families, including single or multifamily
 16  9 housing.  If an urban renewal plan for an urban renewal area
 16 10 is based upon a finding that the area is an economic
 16 11 development area and that no part contains slum or blighted
 16 12 conditions, then the division of revenue provided in section
 16 13 403.19 and stated in the plan shall be limited to twenty years
 16 14 from the calendar year following the calendar year in which
 16 15 the city first certifies to the county auditor the amount of
 16 16 any loans, advances, indebtedness, or bonds which qualify for
 16 17 payment from the division of revenue provided in section
 16 18 403.19.  Such designated area shall not include agricultural
 16 19 land, including land which is part of a century farm, unless
 16 20 the owner of the agricultural land or century farm agrees to
 16 21 include the agricultural land or century farm in the urban
 16 22 renewal area.  For the purposes of this subsection, "century
 16 23 farm" means a farm in which at least forty acres of such farm
 16 24 have been held in continuous ownership by the same family for
 16 25 one hundred years or more.
 16 26    Sec. 31.  Sections 306.28 through 306.37, Code 1999, are
 16 27 repealed.
 16 28    Sec. 32.  APPLICABILITY.  Sections 1, 27, 28, and 29 of
 16 29 this Act, enacting section 6A.21, amending sections 403.5 and
 16 30 403.7, and enacting section 403.17, subsection 2A, apply to
 16 31 urban renewal areas established before, on, or after the
 16 32 effective date of this Act and to amendments to such urban
 16 33 renewal areas.
 16 34    Section 30 of this Act, amending section 403.17, subsection
 16 35 9, applies to urban renewal areas established on or after the
 17  1 effective date of this Act.  Section 30 of this Act also
 17  2 applies to agricultural land included in an urban renewal area
 17  3 established before the effective date of this Act if the
 17  4 agricultural land is included in the urban renewal area by
 17  5 virtue of an amendment to the urban renewal plan, which
 17  6 amendment is adopted on or after the effective date of this
 17  7 Act.
 17  8    Sec. 33.  EFFECTIVE DATE.  This Act, being deemed of
 17  9 immediate importance, takes effect upon enactment.  
 17 10                           EXPLANATION 
 17 11    This bill makes several changes to the law relating to the
 17 12 power of eminent domain and the procedures by which the state
 17 13 of Iowa and other entities and persons are allowed to condemn
 17 14 private property.  Entities or persons conferred the right by
 17 15 law to condemn private property include counties, cities,
 17 16 owners of land without a way to the land, owners of mineral
 17 17 lands, cemetery associations, and subdistricts of soil and
 17 18 water conservation districts.
 17 19    The bill defines "public use" or "public purpose" to
 17 20 exclude the condemnation of agricultural land without the
 17 21 consent of the owner.  The bill defines "agricultural land" as
 17 22 real property used for production of certain agricultural
 17 23 products and defines "private development purposes" as the
 17 24 construction of, or public improvement related to,
 17 25 recreational development, housing and residential development,
 17 26 or commercial or industrial enterprise development.
 17 27    The bill requires a condemning authority to send a notice
 17 28 of condemnation to the owner of property for which
 17 29 condemnation is being considered and to any lessee of that
 17 30 property.  The notice must be mailed by ordinary mail no less
 17 31 than 30 days before adoption of the declaration of intent
 17 32 relating to the public improvement and the acquisition or
 17 33 condemnation of the property.  The notice, at a minimum,
 17 34 should include information on the general nature of the public
 17 35 improvement, the intended use of the property, the process
 18  1 relating to the public improvement, and opportunity for public
 18  2 input relating to the public improvement if the law requires
 18  3 public input.
 18  4    The bill requires a condemning authority to make a good
 18  5 faith effort to negotiate with the owner to purchase the
 18  6 private property before filing an application for
 18  7 condemnation.  The condemning authority is required to provide
 18  8 the owner of the property and any lessee of the property with
 18  9 a statement of rights.  The statement is to be included with
 18 10 the notice of condemnation.  The bill provides that
 18 11 condemnation may not proceed until the notice of condemnation
 18 12 containing the statement of individual rights is provided to
 18 13 the owner and to any lessee.
 18 14    The bill requires a condemning authority to mail a copy of
 18 15 the condemnation application filed with the district court to
 18 16 the owner of the property and to any lessee of the property.
 18 17 The bill also requires that the condemnation application
 18 18 provide information on the minimum amount of land necessary
 18 19 for the public improvement and the amount of land to be
 18 20 acquired by condemnation.  The condemnation application must
 18 21 also include a statement of the efforts made by the condemning
 18 22 authority to negotiate with the owner for the sale of the
 18 23 property prior to filing the application.
 18 24    The bill requires that a list of the persons selected to
 18 25 serve on the compensation commission for condemnation
 18 26 proceedings be provided to the condemnation applicant and to
 18 27 the owner of the property.  The bill allows an applicant or
 18 28 owner to challenge the impartiality of any commissioner who
 18 29 may then be dismissed for cause.  The bill also allows the
 18 30 applicant and the owner to each dismiss one commissioner
 18 31 without stating cause.
 18 32    The bill provides that service of notice of assessment
 18 33 shall be mailed by certified mail to applicants or owners or
 18 34 persons in interest, any of whom are not residents of the
 18 35 state.  Currently, service of notice to nonresidents is by
 19  1 publication.
 19  2    The bill increases the amount to be paid in moving expenses
 19  3 from $500 to $5,000 for an owner or tenant occupying land that
 19  4 has been condemned.  The bill also increases that distance
 19  5 that personal property is moved for which moving expenses are
 19  6 paid from 25 miles to 300 miles.
 19  7    The bill requires that notices of appraisement sent to the
 19  8 condemning authority and the condemnee be sent by certified
 19  9 mail.  The bill also changes the time that an interested
 19 10 person may appeal the appraisement to district court to 30
 19 11 days from receipt of the notice of appraisement.  Currently,
 19 12 the 30 days starts counting from the date the notice is
 19 13 mailed.
 19 14    The bill adds outbuildings to the list of property from
 19 15 which a landowner may not be dispossessed by condemnation
 19 16 without determination and payment of damages.
 19 17    The bill provides that the condemnation applicant shall pay
 19 18 the per diem and actual expenses to members of the
 19 19 compensation commission.  The bill also provides that the
 19 20 applicant shall reimburse the owner of the property for
 19 21 expenses incurred for recording fees, transfer taxes, mortgage
 19 22 penalty costs, and similar expenses incidental to the transfer
 19 23 of the property to the applicant.
 19 24    The bill provides that relocation expenses for
 19 25 condemnations by the state of Iowa or other entity or person
 19 26 having the right to condemn property shall be determined and
 19 27 paid in the same manner as relocation expenses for
 19 28 condemnations involving federally funded projects.
 19 29    The bill requires that a copy of all appraisals in their
 19 30 entirety prepared for or by the purchasing state agency,
 19 31 county, or city be mailed to the owner of the property.
 19 32    The bill makes current acquisition policy guidelines for
 19 33 projects receiving federal financial assistance applicable to
 19 34 any state funded projects and to any other public improvement
 19 35 for which condemnation is sought.
 20  1    The bill provides that condemnation of property for
 20  2 secondary roads shall be conducted according to the provisions
 20  3 of chapters 6A and 6B.  Those Code sections providing an
 20  4 alternative condemnation procedure for counties to follow are
 20  5 repealed.
 20  6    The bill makes several changes to the law on urban renewal
 20  7 as it relates to the power of eminent domain and condemnation
 20  8 procedures.  The bill provides that, in order to protect land
 20  9 used for an agricultural purpose, a municipality (city or
 20 10 county) shall not condemn agricultural land included within an
 20 11 urban renewal area designated as an economic development area
 20 12 without the consent of the owner of the agricultural land.
 20 13    The section of the bill amending the definition of
 20 14 "economic development area" for purposes of urban renewal,
 20 15 applies to urban renewal areas established on or after the
 20 16 effective date of the bill.  However, the amendment applies to
 20 17 urban renewal areas established before the effective date if
 20 18 they were amended to add agricultural land to the economic
 20 19 development urban renewal area after the effective date of the
 20 20 bill.  The remaining sections of the bill which amend or
 20 21 reference Code chapter 403 apply to urban renewal areas
 20 22 established before, on, or after the effective date of the
 20 23 bill.
 20 24    The bill takes effect upon enactment.  
 20 25 LSB 1356SC 78
 20 26 sc/gg/8
     

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