H.F. 2254 Section 1. NEW SECTION . 6A.15 Property on state historic 1 registry. 2 1. Property listed on the state register of historic places 3 maintained by the historical division of the department of 4 cultural affairs shall not be removed from the register solely 5 for the purpose of allowing acquisition of the property by 6 condemnation, unless such condemnation is undertaken by the 7 department of transportation. 8 2. Property listed on the state register of historic places 9 maintained by the historical division of the department of 10 cultural affairs shall not be condemned by the state or a 11 political subdivision unless a joint resolution authorizing 12 commencement of the condemnation proceedings is approved by a 13 vote of at least two-thirds of the members of both chambers of 14 the general assembly and signed by the governor. The approval 15 requirements of this subsection shall not apply to condemnation 16 undertaken by the department of transportation. 17 Sec. 2. Section 6A.19, Code 2011, is amended to read as 18 follows: 19 6A.19 Interpretative clause. 20 A grant in this chapter of right to take private property 21 for a public use shall not be construed as limiting a like 22 grant elsewhere in the Code for another and different use. 23 Unless specifically provided by law, this chapter shall not 24 be construed to limit or otherwise affect the application of 25 chapters 478 and 479 to the eminent domain authority of the 26 utilities division of the department of commerce. 27 Sec. 3. Section 6A.22, subsection 2, paragraph c, 28 subparagraph (1), Code 2011, is amended to read as follows: 29 (1) (a) If private property is to be condemned for 30 development or creation of a lake, only that number of acres 31 justified as reasonable and necessary for a surface drinking 32 water source, and not otherwise acquired, may be condemned. 33 In addition, the acquiring agency shall conduct a review of 34 prudent and feasible alternatives to provision of a drinking 35 -1- LSB 5214YH (5) 84 md/sc 1/ 9

H.F. 2254 water source prior to making a determination that such 1 lake development or creation is reasonable and necessary. 2 Development or creation of a lake as a surface drinking water 3 source includes all of the following: 4 (i) Construction of the dam, including sites for suitable 5 borrow material and the auxiliary spillway. 6 (ii) The water supply pool. 7 (iii) The sediment pool. 8 (iv) The flood control pool. 9 (v) The floodwater retarding pool. 10 (vi) The surrounding area upstream of the dam no higher in 11 elevation than the top of the dam’s elevation. 12 (vii) The appropriate setback distance required by state or 13 federal laws and regulations to protect drinking water supply. 14 (b) For purposes of this subparagraph (1), “number of acres 15 justified as reasonable and necessary for a surface drinking 16 water source” means according to guidelines of the United 17 States natural resource conservation service and according to 18 analyses of surface drinking water capacity needs conducted by 19 one or more registered professional engineers. The registered 20 professional engineers may, if appropriate, employ standards 21 or guidelines other than the guidelines of the United States 22 natural resource conservation service when determining the 23 number of acres justified as reasonable and necessary for 24 a surface drinking water source. The data and information 25 used by the registered professional engineers shall include 26 data and information relating to population and commercial 27 enterprise activity for the area from the two most recent 28 federal decennial censuses unless the district court of the 29 county in which the property is situated has determined by 30 a preponderance of the evidence that such data would not 31 accurately predict the population and commercial enterprise 32 activity of the area in the future. 33 (c) A second review or analysis of the drinking water 34 capacity needs shall be performed upon receipt by the acquiring 35 -2- LSB 5214YH (5) 84 md/sc 2/ 9

H.F. 2254 agency of a petition signed by not less than twenty-five 1 percent of the affected property owners. The registered 2 professional engineer to perform the second review or analysis 3 shall be selected by a committee appointed by the affected 4 property owners and whose membership is comprised of at 5 least fifty percent property owners affected by the proposed 6 condemnation action. The acquiring agency shall be responsible 7 for paying the fees and expenses of such an engineer. 8 (d) If private property is to be condemned for development 9 or creation of a lake, the plans, analyses, applications, 10 including any application for funding, and other planning 11 activities of the acquiring agency shall not include or provide 12 for the use of the lake for recreational purposes. 13 Sec. 4. Section 6B.54, subsection 10, paragraph a, Code 14 2011, is amended by adding the following new subparagraph: 15 NEW SUBPARAGRAPH . (3) Reasonable attorney fees and 16 reasonable costs not to exceed one hundred thousand dollars, 17 attributable to a determination that the creation of a lake 18 through condemnation includes a future recreational use or that 19 a violation of section 6A.22, subsection 2, paragraph “c” , 20 subparagraph (1), subparagraph division (d), has occurred, if 21 such fees and costs are not otherwise provided under section 22 6B.33. 23 Sec. 5. NEW SECTION . 6B.56B Disposition of condemned 24 property —— two-year time period. 25 1. When two years have elapsed since property was condemned 26 for the creation of a lake according to the requirements of 27 section 6A.22, subsection 2, paragraph “c” , subparagraph (1), 28 and the property has not been used for or construction has 29 not progressed substantially from the date the property was 30 condemned for the purpose stated in the application filed 31 pursuant to section 6B.3, and the acquiring agency has not 32 taken action to dispose of the property pursuant to section 33 6B.56, the acquiring agency shall, within sixty days, adopt a 34 resolution offering the property for sale to the prior owner 35 -3- LSB 5214YH (5) 84 md/sc 3/ 9

H.F. 2254 at a price as provided in section 6B.56. If the resolution 1 adopted approves an offer of sale to the prior owner, the offer 2 shall be made in writing and mailed by certified mail to the 3 prior owner. The prior owner has one hundred eighty days after 4 the offer is mailed to purchase the property from the acquiring 5 agency. 6 2. If the acquiring agency has not adopted a resolution 7 described in subsection 1 within the sixty-day time period, the 8 prior owner may, in writing, petition the acquiring agency to 9 offer the property for sale to the prior owner at a price as 10 provided in section 6B.56. Within sixty days after receipt of 11 such a petition, the acquiring agency shall adopt a resolution 12 described in subsection 1. If the acquiring agency does not 13 adopt such a resolution within sixty days after receipt of the 14 petition, the acquiring agency is deemed to have offered the 15 property for sale to the prior owner. 16 3. The acquiring agency shall give written notice to the 17 owner of the right to purchase the property under this section 18 at the time damages are paid to the owner. 19 Sec. 6. Section 403.7, subsection 1, unnumbered paragraph 20 1, Code 2011, is amended to read as follows: 21 A municipality shall have the right to acquire by 22 condemnation any interest in real property, including a fee 23 simple title thereto, which it may deem necessary for or in 24 connection with an urban renewal project under this chapter , 25 subject to the limitations on eminent domain authority 26 in chapter chapters 6A and 6B . However, a municipality 27 shall not condemn agricultural land included within an 28 economic development area for any use unless the owner of 29 the agricultural land consents to condemnation or unless the 30 municipality determines that the land is necessary or useful 31 for any of the following: 32 Sec. 7. NEW SECTION . 423B.11 Use of revenues —— limitation. 33 The revenue raised by a local sales and services tax imposed 34 under this chapter by a county shall not be expended for any 35 -4- LSB 5214YH (5) 84 md/sc 4/ 9

H.F. 2254 purpose related to a project that includes the condemnation of 1 private property for the creation of a lake according to the 2 requirements of section 6A.22, subsection 2, paragraph “c” , 3 subparagraph (1), if the local sales and services tax has not 4 been approved at election in the area where the property to be 5 condemned is located. 6 Sec. 8. Section 455A.5, Code 2011, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 7. The authority granted to the commission 9 to acquire real property for purposes of carrying out a 10 duty related to development or maintenance of the recreation 11 resources of the state, including planning, acquisition, and 12 development of recreational projects, and areas and facilities 13 related to such projects, shall not include the authority to 14 acquire real property by eminent domain. 15 Sec. 9. Section 456A.24, subsection 2, unnumbered paragraph 16 1, Code 2011, is amended to read as follows: 17 Acquire by purchase, condemnation, lease, agreement, 18 gift, and devise lands or waters suitable for the purposes 19 hereinafter enumerated, and rights-of-way thereto, and to 20 maintain the same for the following purposes , to wit : 21 Sec. 10. Section 456A.24, Code 2011, is amended by adding 22 the following new subsection: 23 NEW SUBSECTION . 15. The authority granted the department 24 to acquire real property for any statutory purpose relating to 25 the development or maintenance of the recreation resources of 26 the state, including planning, acquisition, and development 27 of recreational projects, and areas and facilities related to 28 such projects, shall not include the authority to acquire real 29 property by eminent domain. 30 Sec. 11. Section 461A.7, Code 2011, is amended to read as 31 follows: 32 461A.7 Eminent domain Purchase of lands —— public parks . 33 The commission may purchase or condemn lands from willing 34 sellers for public parks. No A contract for the purchase of 35 -5- LSB 5214YH (5) 84 md/sc 5/ 9

H.F. 2254 such public parks shall not be made to an amount in excess of 1 funds appropriated therefor by the general assembly. 2 Sec. 12. Section 461A.10, Code 2011, is amended to read as 3 follows: 4 461A.10 Title to lands. 5 The title to all lands purchased, condemned, or donated , 6 hereunder, for park or highway purposes and the title to all 7 lands purchased, condemned, or donated hereunder for highway 8 purposes , shall be taken in the name of the state and if 9 thereafter it shall be deemed advisable to sell any portion of 10 the land so purchased or condemned, the proceeds of such sale 11 shall be placed to the credit of the said public state parks 12 fund to be used for such park purposes. 13 Sec. 13. Section 463C.8, subsection 1, paragraph k, Code 14 2011, is amended to read as follows: 15 k. The power to acquire, own, hold, administer, and dispose 16 of property , except that such power is not a grant of authority 17 to acquire property by eminent domain . 18 Sec. 14. REPEAL. Sections 461A.9 and 461A.75, Code 2011, 19 are repealed. 20 Sec. 15. EFFECTIVE UPON ENACTMENT AND APPLICABILITY. This 21 Act, being deemed of immediate importance, takes effect upon 22 enactment and applies to projects or condemnation proceedings 23 pending or commenced on or after that date. 24 EXPLANATION 25 This bill makes changes relating to eminent domain authority 26 and procedures for governmental entities. 27 The bill provides that property listed on the state register 28 of historic places shall not be removed from the register 29 solely for the purpose of allowing the property to be acquired 30 by condemnation unless the condemnation is undertaken by 31 the department of transportation. The bill also provides 32 that property on the state register of historic places may 33 not be condemned unless a joint resolution authorizing the 34 condemnation is approved by a vote of at least two-thirds 35 -6- LSB 5214YH (5) 84 md/sc 6/ 9

H.F. 2254 of each house of the general assembly and signed by the 1 governor. This approval procedure, however, does not apply to 2 a condemnation undertaken by the department of transportation. 3 The bill specifies that Code chapter 6A, unless specifically 4 provided by law, is not to be construed to limit or otherwise 5 affect the application of Code chapters 478 and 479 to the 6 eminent domain authority of the utilities division of the 7 department of commerce. 8 The bill makes changes relating to eminent domain authority 9 in relation to development or creation of a lake. The bill 10 provides that when determining the number of acres justified as 11 reasonable and necessary for a surface drinking water source, 12 the registered professional engineers may, if appropriate, 13 employ standards or guidelines other than the guidelines of 14 the United States natural resource conservation service. The 15 bill requires the data and information used by the registered 16 professional engineers to include data and information relating 17 to population and commercial enterprise activity for the area 18 from the two most recent federal decennial censuses unless the 19 district court of the county in which the property is situated 20 has determined by a preponderance of the evidence that such 21 data would not accurately predict the population and commercial 22 enterprise activity of the area in the future. 23 The bill also provides that a second review or analysis 24 of the drinking water capacity needs shall be performed upon 25 receipt by the acquiring agency of a petition signed by not 26 less than 25 percent of the affected property owners. The 27 registered professional engineer to perform the second review 28 or analysis shall be selected by a committee appointed by the 29 affected property owners and comprised of at least 50 percent 30 property owners affected by the proposed condemnation action. 31 The bill further provides that the acquiring agency shall 32 pay for the services of such an engineer. The bill provides 33 that if private property is to be condemned for development 34 or creation of a lake, the plans, analyses, applications, 35 -7- LSB 5214YH (5) 84 md/sc 7/ 9

H.F. 2254 including any application for funding, and other planning 1 activities of the acquiring agency shall not include or provide 2 for the use of the lake for recreational purposes. 3 The bill adds reasonable attorney fees and reasonable costs 4 that are attributable to certain condemnation proceedings 5 relating to the creation of a lake, up to $100,000, to the list 6 of expenses reimbursable by an acquiring agency to a property 7 owner. 8 The bill provides that when two years have elapsed since 9 property was condemned for the creation of a lake and the 10 property has not been used for or construction has not 11 progressed substantially for the purpose stated in the 12 application, and the acquiring agency has not taken action to 13 dispose of the property pursuant to Code section 6B.56, the 14 acquiring agency shall, within 60 days, adopt a resolution 15 offering the property for sale to the prior owner at a price 16 as provided in Code section 6B.56. If the acquiring agency 17 has not adopted a resolution within the 60-day time period, 18 the prior owner may petition the acquiring agency to offer the 19 property for sale to the prior owner at a price as provided in 20 Code section 6B.56. The bill requires the acquiring agency to 21 give written notice to the owner at the time damages are paid 22 to the owner of the right to purchase the property under such 23 circumstances. 24 The bill provides that the revenue raised by a local sales 25 and services tax imposed under Code chapter 423B by a county 26 shall not be expended for any purpose related to a project 27 that includes the condemnation of private property for the 28 creation of a lake if the local sales and services tax has not 29 been approved at election in the area where the property to be 30 condemned is located. 31 The bill specifies that a municipality exercising eminent 32 domain authority in an urban renewal area is subject to the 33 limitations contained in Code chapter 6B, as well as Code 34 chapter 6A. 35 -8- LSB 5214YH (5) 84 md/sc 8/ 9

H.F. 2254 The bill provides that the department of natural resources 1 and the natural resource commission shall not exercise eminent 2 domain authority to acquire real property for purposes of 3 carrying out a duty related to development or maintenance of 4 the recreation resources of the state, including planning, 5 acquisition, and development of recreational projects, and 6 areas and facilities related to such projects. The bill 7 retains the department’s authority to acquire property through 8 condemnation for highway purposes. 9 The bill takes effect upon enactment and applies to projects 10 or condemnation proceedings pending or commenced on or after 11 that date. 12 -9- LSB 5214YH (5) 84 md/sc 9/ 9