House Amendment to Senate File 449 S-3135 Amend Senate File 449, as passed by the Senate, as 1 follows: 2 1. Page 1, before line 1 by inserting: 3 < DIVISION I 4 PUBLIC IMPROVEMENT LOCATION AND UNUSED PORTION OF 5 CONDEMNED PROPERTY > 6 2. Page 2, line 33, after < this > by inserting 7 < division of this > 8 3. Page 3, line 2, after < this > by inserting 9 < division of this > 10 4. Page 3, after line 5 by inserting: 11 < DIVISION ___ 12 CONDEMNATION FOR CREATION OF A LAKE —— NUMBER OF ACRES 13 Sec. ___. Section 6A.22, subsection 2, paragraph c, 14 subparagraph (1), subparagraph division (b), Code 2015, 15 is amended to read as follows: 16 (b) (i) For purposes of this subparagraph (1), 17 “number of acres justified as necessary for a surface 18 drinking water source” means according to guidelines of 19 the United States natural resource conservation service 20 and according to analyses of surface drinking water 21 capacity needs conducted by one or more registered 22 professional engineers. 23 (ii) For condemnation proceedings for which the 24 application pursuant to section 6B.3 was filed after 25 January 1, 2013, for condemnation of property located 26 in a county with a population of greater than nine 27 thousand two hundred fifty but less than nine thousand 28 three hundred, according to the 2010 federal decennial 29 census, which property was in whole or in part subject 30 to an action under section 6A.24 for which the petition 31 under section 6A.24 was filed after January 1, 2013, 32 but before January 1, 2014, “number of acres justified 33 as necessary for a surface drinking water source” , as 34 determined under subparagraph subdivision (i) shall 35 not exceed the number of acres that would be necessary 36 to provide the amount of drinking water to meet the 37 needs of a population equal to the population of the 38 county where the lake is to be developed or created, 39 according to the most recent federal decennial census. 40 However, if the population of the county where the 41 lake is to be developed or created increased from the 42 federal decennial census immediately preceding the 43 most recent federal decennial census, the “number of 44 acres justified as necessary for a surface drinking 45 water source” shall not exceed the number of acres that 46 would be necessary to provide the amount of drinking 47 water to meet the needs of a population equal to the 48 product of one plus the percentage increase in the 49 population of the county between the two most recent 50 -1- SF449.1578.H (1) 86 md 1/ 4 #1. #2. #3. #4.

federal decennial censuses multiplied by the county’s 1 population according to the most recent federal 2 decennial census. 3 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 4 of this Act, being deemed of immediate importance, 5 takes effect upon enactment. 6 DIVISION ___ 7 CONDEMNATION FOR CREATION OF A LAKE —— EXISTING SOURCES 8 Sec. ___. Section 6A.22, subsection 2, paragraph c, 9 subparagraph (1), Code 2015, is amended by adding the 10 following new subparagraph division: 11 NEW SUBPARAGRAPH DIVISION . (0b) For condemnation 12 of property located in a county with a population 13 of greater than nine thousand two hundred fifty but 14 less than nine thousand three hundred, according to 15 the 2010 federal decennial census, prior to making 16 a determination that development or creation of a 17 lake as a surface drinking water source is reasonable 18 and necessary, the acquiring agency shall conduct a 19 review of feasible alternatives to development or 20 creation of a lake as a surface drinking water source. 21 An acquiring agency shall not have the authority 22 to condemn private property for the development or 23 creation of a lake as a surface drinking water source 24 if one or more feasible alternatives to provision of 25 a drinking water source exist. An alternative that 26 results in the physical expansion of an existing 27 drinking water source is presumed to be a feasible 28 alternative to development or creation of a lake as 29 a surface drinking water source. An alternative that 30 supplies drinking water by pipeline or other method of 31 transportation or transmission from an existing source 32 located within or outside this state at a reasonable 33 cost is a feasible alternative to development or 34 creation of a lake as a surface drinking water source. 35 If private property is to be condemned for development 36 or creation of a lake, only that number of acres 37 justified as necessary for a surface drinking water 38 source, and not otherwise acquired, may be condemned. 39 Development or creation of a lake as a surface drinking 40 water source includes all of the following: 41 (i) Construction of the dam, including sites for 42 suitable borrow material and the auxiliary spillway. 43 (ii) The water supply pool. 44 (iii) The sediment pool. 45 (iv) The flood control pool. 46 (v) The floodwater retarding pool. 47 (vi) The surrounding area upstream of the dam 48 no higher in elevation than the top of the dam’s 49 elevation. 50 -2- SF449.1578.H (1) 86 md 2/ 4

(vii) The appropriate setback distance required 1 by state or federal laws and regulations to protect 2 drinking water supply. 3 Sec. ___. Section 6A.24, subsection 3, Code 2015, 4 is amended to read as follows: 5 3. For any action brought under this section , 6 the burden of proof shall be on the acquiring agency 7 to prove by a preponderance of the evidence that 8 the finding of public use, public purpose, or public 9 improvement meets the definition of those terms. 10 However, for any action brought under this section 11 that involves property described in section 6A.22, 12 subsection 2, paragraph “c” , subparagraph (1), 13 subparagraph division (0b), the burden of proof shall 14 be on the acquiring agency to prove by clear and 15 convincing evidence that no feasible alternatives 16 to provision of a drinking water source exist. If a 17 property owner or a contract purchaser of record or a 18 tenant occupying the property under a recorded lease 19 prevails in an action brought under this section , the 20 acquiring agency shall be required to pay the costs, 21 including reasonable attorney fees, of the adverse 22 party. 23 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 24 of this Act, being deemed of immediate importance, 25 takes effect upon enactment. 26 Sec. ___. APPLICABILITY. This division of this Act 27 applies to projects or condemnation proceedings pending 28 or commenced on or after the effective date of this 29 division of this Act. 30 DIVISION ___ 31 DISPOSITION OF CONDEMNED PROPERTY 32 Sec. ___. Section 6B.56A, subsection 4, Code 2015, 33 is amended to read as follows: 34 4. This section does not apply to property acquired 35 for street and highway projects undertaken by the 36 state, a county, or a city or to property that is 37 subject to the disposition of property requirements 38 under section 6B.56B . 39 Sec. ___. NEW SECTION . 6B.56B Disposition of 40 condemned property —— lake creation. 41 1. When two years have elapsed since property was 42 condemned for the creation of a lake according to the 43 requirements of section 6A.22, subsection 2, paragraph 44 “c” , subparagraph (1), subparagraph division (0b), and 45 the property has not been used for the purpose stated 46 in the application filed pursuant to section 6B.3, and 47 the acquiring agency has not taken action to dispose of 48 the property pursuant to section 6B.56, the acquiring 49 agency shall, within sixty days, adopt a resolution 50 -3- SF449.1578.H (1) 86 md 3/ 4

offering the property for sale to the prior owner at a 1 price as provided in section 6B.56. If the resolution 2 adopted approves an offer of sale to the prior owner, 3 the offer shall be made in writing and mailed by 4 certified mail to the prior owner. The prior owner has 5 one hundred eighty days after the offer is mailed to 6 purchase the property from the acquiring agency. 7 2. If the acquiring agency has not adopted a 8 resolution described in subsection 1 within the 9 sixty-day time period, the prior owner may, in writing, 10 petition the acquiring agency to offer the property 11 for sale to the prior owner at a price as provided in 12 section 6B.56. Within sixty days after receipt of 13 such a petition, the acquiring agency shall adopt a 14 resolution described in subsection 1. If the acquiring 15 agency does not adopt such a resolution within sixty 16 days after receipt of the petition, the acquiring 17 agency is deemed to have offered the property for sale 18 to the prior owner. 19 3. The acquiring agency shall give written notice 20 to the owner of the right to purchase the property 21 under this section at the time damages are paid to the 22 owner. 23 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 24 of this Act, being deemed of immediate importance, 25 takes effect upon enactment. 26 Sec. ___. APPLICABILITY. This division of this Act 27 applies to projects or condemnation proceedings pending 28 or commenced on or after the effective date of this 29 division of this Act. > 30 5. Title page, line 3, after < including > by 31 inserting < effective date and > 32 6. By renumbering, redesignating, and correcting 33 internal references as necessary. 34 -4- SF449.1578.H (1) 86 md 4/ 4 #5.