H.F. 603 Section 1. Section 6A.1, Code 2011, is amended to read as 1 follows: 2 6A.1 Exercise of power by state. 3 1. Proceedings may be instituted and maintained by the 4 state of Iowa, or for the use and benefit thereof, for the 5 condemnation of such private property as may be necessary 6 for any public improvement which the general assembly has 7 authorized to be undertaken by the state, and for which an 8 available appropriation has been made. The executive council 9 shall institute and maintain such proceedings in case authority 10 to so do be not otherwise delegated. 11 2. All proceedings instituted and maintained by the state 12 of Iowa for the condemnation of private property shall not 13 commence without the signed authorization of the governor if 14 the total amount of private property to be condemned exceeds 15 five hundred acres. 16 3. Notwithstanding any provision of law to the contrary, 17 the condemnation authority granted in this section shall not 18 extend to the department of natural resources if the department 19 is seeking to acquire real property for purposes of carrying 20 out a duty related to the development or maintenance of 21 the recreation resources of the state, including planning, 22 acquisition, and development of recreational projects, and 23 areas and facilities related to such projects. 24 Sec. 2. NEW SECTION . 6A.15 Property on state historic 25 registry. 26 1. Property listed on the state register of historic places 27 maintained by the historical division of the department of 28 cultural affairs shall not be removed from the register solely 29 for the purpose of allowing acquisition of the property by 30 condemnation. 31 2. Property listed on the state register of historic places 32 maintained by the historical division of the department of 33 cultural affairs shall not be condemned by the state or a 34 political subdivision unless a joint resolution authorizing 35 -1- LSB 1659HV (4) 84 md/sc 1/ 13

H.F. 603 commencement of the condemnation proceedings is approved by a 1 vote of at least two-thirds of the members of both chambers of 2 the general assembly and signed by the governor. 3 Sec. 3. Section 6A.22, subsection 2, paragraph c, 4 subparagraph (1), Code 2011, is amended to read as follows: 5 (1) (a) If private property is to be condemned for 6 development or creation of a lake, only that number of acres 7 justified as reasonable and necessary for a surface drinking 8 water source, and not otherwise acquired, may be condemned. 9 In addition Prior to making a determination that such lake 10 development or creation is reasonable and necessary , the 11 acquiring agency shall conduct a review of demonstrate by clear 12 and convincing evidence that no other prudent and feasible 13 alternatives to alternative for provision of a drinking 14 water source prior to making a determination that such lake 15 development or creation is reasonable and necessary exists . 16 Development or creation of a lake as a surface drinking water 17 source includes all of the following: 18 (i) Construction of the dam, including sites for suitable 19 borrow material and the auxiliary spillway. 20 (ii) The water supply pool. 21 (iii) The sediment pool. 22 (iv) The flood control pool. 23 (v) The floodwater retarding pool. 24 (vi) The surrounding area upstream of the dam no higher in 25 elevation than the top of the dam’s elevation. 26 (vii) The appropriate setback distance required by state or 27 federal laws and regulations to protect drinking water supply. 28 (b) For purposes of this subparagraph (1), “number of acres 29 justified as reasonable and necessary for a surface drinking 30 water source” means according to guidelines of the United 31 States natural resource conservation service and according to 32 analyses of surface drinking water capacity needs conducted 33 by one or more registered professional engineers. The data 34 and information used by the registered professional engineers 35 -2- LSB 1659HV (4) 84 md/sc 2/ 13

H.F. 603 to analyze and determine the drinking water capacity needs 1 under this subparagraph shall first be approved by a committee 2 appointed by the affected property owners and comprised of more 3 than fifty percent property owners affected by the proposed 4 condemnation action. The committee shall hold at least one 5 public meeting relating to such data and information prior to 6 approval and submission of the data and information to the 7 registered professional engineers. 8 (c) A second review or analysis of the drinking water 9 capacity needs may be requested by any landowner affected 10 by the proposed condemnation action, and the engineer to 11 perform the second review or analysis shall be selected by the 12 committee established under subparagraph division (b). The 13 acquiring agency shall be responsible for paying the fees and 14 expenses of such an engineer. 15 (d) If private property is to be condemned for development 16 or creation of a lake, the plans, analyses, applications, 17 including any application for funding, and other planning 18 activities of the acquiring agency shall not include or provide 19 for the use of the lake for recreational purposes. 20 Sec. 4. Section 6A.22, subsection 2, Code 2011, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. Notwithstanding paragraphs “a” , “b” , and 23 “c” , “public use” , “public purpose” , or “public improvement” does 24 not include any project that receives a state appropriation or 25 that receives or is awarded state funds or other funding by 26 means of incentives, as authorized pursuant to chapter 12, 15, 27 15A, 15E, 15F, 15G, or 16. 28 Sec. 5. Section 6A.24, subsection 3, Code 2011, is amended 29 to read as follows: 30 3. For any action brought under this section , the burden 31 of proof shall be on the acquiring agency to prove by a 32 preponderance of the clear and convincing evidence that the 33 finding of public use, public purpose, or public improvement 34 meets the definition of those terms. If a property owner or a 35 -3- LSB 1659HV (4) 84 md/sc 3/ 13

H.F. 603 contract purchaser of record or a tenant occupying the property 1 under a recorded lease prevails in an action brought under 2 this section , the acquiring agency shall be required to pay 3 the costs, including reasonable attorney fees, of the adverse 4 party. 5 Sec. 6. Section 6B.2C, Code 2011, is amended to read as 6 follows: 7 6B.2C Approval of the public improvement. 8 The authority to condemn is not conferred, and the 9 condemnation proceedings shall not commence, unless the 10 governing body for the acquiring agency approves , by 11 resolution, declares that adequate funding for the public 12 improvement has been or is reasonably certain to be secured, 13 that the use of condemnation for the public improvement is 14 approved, and that there is a reasonable expectation the 15 applicant will be able to achieve its public purpose, comply 16 with all applicable standards, and obtain the necessary 17 permits. 18 Sec. 7. Section 6B.4, unnumbered paragraph 1, Code 2011, is 19 amended to read as follows: 20 Annually the board of supervisors of a county shall appoint 21 not less than twenty-eight residents of the county or of 22 contiguous counties and the names of such persons shall be 23 placed on a list and they shall be eligible to serve as members 24 of a compensation commission. One-fourth of the persons 25 appointed shall be owner-operators of agricultural property, 26 one-fourth of the persons appointed shall be owners of city 27 property, one-fourth shall be licensed real estate salespersons 28 or real estate brokers, and one-fourth shall be persons having 29 knowledge of property values in the county by reason of their 30 occupation, such as bankers, auctioneers, property managers, 31 property appraisers, and persons responsible for making loans 32 on property. 33 Sec. 8. Section 6B.14, subsection 2, Code 2011, is amended 34 to read as follows: 35 -4- LSB 1659HV (4) 84 md/sc 4/ 13

H.F. 603 2. Prior to the meeting of the commission, the commission 1 or a commissioner shall not communicate with the applicant, 2 property owner, or tenant, or their agents, regarding the 3 condemnation proceedings. The commissioners shall meet in 4 open session to view the property and to receive evidence, 5 but may and shall deliberate and vote in closed open session. 6 However, if the session relates to condemnation undertaken by 7 the department of transportation the commissioners shall meet 8 in open session to view the property, receive evidence, and 9 vote, but may deliberate in closed session. When deliberating 10 in closed session, the meeting is closed to all persons who 11 are not commissioners except for personnel from the sheriff’s 12 office if such personnel is requested by the commission. After 13 deliberations commence, the commission and each commissioner is 14 prohibited from communicating with any party to the proceeding 15 unless such communication occurs in the presence of or with 16 the consent of the property owner and other parties who 17 appeared before the commission or their agents . However, 18 if the commission is deliberating in closed session for a 19 condemnation undertaken by the department of transportation , 20 and after deliberations commence the commission requires 21 further information from a party or a witness, the commission 22 shall notify the property owner and the acquiring agency that 23 they are allowed to attend the meeting at which such additional 24 information shall be provided but only for that period of time 25 during which the additional information is being provided. 26 The property owner and the acquiring agency shall be given a 27 reasonable opportunity to attend the meeting. The commission 28 shall keep minutes of all its meetings showing the date, time, 29 and place, the members present, and the action taken at each 30 meeting. The minutes shall show the results of each vote taken 31 and information sufficient to indicate the vote of each member 32 present. The vote of each member present shall be made public 33 at the open session. The minutes shall be public records open 34 to public inspection. 35 -5- LSB 1659HV (4) 84 md/sc 5/ 13

H.F. 603 Sec. 9. Section 6B.54, subsection 10, paragraph a, Code 1 2011, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (3) Reasonable attorney fees and 3 reasonable costs not to exceed one hundred thousand dollars, 4 attributable to a determination that the creation of a lake 5 through condemnation includes a future recreational use or that 6 a violation of section 6A.22, subsection 2, paragraph “c” , 7 subparagraph (1), subparagraph division (d), has occurred, if 8 such fees and costs are not otherwise provided under section 9 6B.33. 10 Sec. 10. NEW SECTION . 6B.56B Disposition of condemned 11 property —— two-year time period. 12 1. When two years have elapsed since property was condemned 13 for the creation of a lake according to the requirements of 14 section 6A.22, subsection 2, paragraph “c” , subparagraph (1), 15 and the property has not been used for or construction has not 16 begun for the purpose stated in the application filed pursuant 17 to section 6B.3, and the acquiring agency has not taken action 18 to dispose of the property pursuant to section 6B.56, the 19 acquiring agency shall, within sixty days, adopt a resolution 20 offering the property for sale to the prior owner at a price as 21 provided in section 6B.56. If the resolution adopted approves 22 an offer of sale to the prior owner, the offer shall be made 23 in writing and mailed by certified mail to the prior owner. 24 The prior owner has one hundred eighty days after the offer is 25 mailed to purchase the property from the acquiring agency. 26 2. If the acquiring agency has not adopted a resolution 27 described in subsection 1 within the sixty-day time period, the 28 prior owner may, in writing, petition the acquiring agency to 29 offer the property for sale to the prior owner at a price as 30 provided in section 6B.56. Within sixty days after receipt of 31 such a petition, the acquiring agency shall adopt a resolution 32 described in subsection 1. If the acquiring agency does not 33 adopt such a resolution within sixty days after receipt of the 34 petition, the acquiring agency is deemed to have offered the 35 -6- LSB 1659HV (4) 84 md/sc 6/ 13

H.F. 603 property for sale to the prior owner. 1 3. The acquiring agency shall give written notice to the 2 owner of the right to purchase the property under this section 3 at the time damages are paid to the owner. 4 Sec. 11. Section 316.4, subsection 1, Code 2011, is amended 5 to read as follows: 6 1. If a program or project undertaken by a displacing agency 7 will result in the displacement of a person, the displacing 8 agency shall make a payment to the displaced person, upon 9 proper application as approved by the displacing agency, for 10 actual reasonable and necessary expenses incurred in moving the 11 person, the person’s family, business, farm operation, or other 12 personal property subject to rules and limits established by 13 the department. The payment may also provide for actual direct 14 losses of tangible personal property, purchase of substitute 15 personal property, business reestablishment expenses, storage 16 expenses, and expenses incurred in searching for a replacement 17 business or farm. If relocation of a business or farm 18 operation is not economically feasible, the displaced person 19 may also apply for payment of the loss of existing business 20 relationships because of the inability to relocate the business 21 or farm operation to a location similar in economic advantage 22 to the location from which the business or farm operation was 23 displaced. 24 Sec. 12. Section 364.4, subsection 1, paragraph a, 25 unnumbered paragraph 1, Code 2011, is amended to read as 26 follows: 27 Acquire, hold, and dispose of property outside the city in 28 the same manner as within. However, the power of a city to 29 acquire property outside the city does not include the power 30 to acquire property outside the city by eminent domain, except 31 if viable alternatives do not exist within the city and the 32 acquisition of the property is necessary for the following, 33 subject to the provisions of chapters 6A and 6B : 34 Sec. 13. Section 403.7, subsection 1, unnumbered paragraph 35 -7- LSB 1659HV (4) 84 md/sc 7/ 13

H.F. 603 1, Code 2011, is amended to read as follows: 1 A municipality shall have the right to acquire by 2 condemnation any interest in real property, including a fee 3 simple title thereto, which it may deem necessary for or in 4 connection with an urban renewal project under this chapter , 5 subject to the limitations on eminent domain authority 6 in chapter chapters 6A and 6B . However, a municipality 7 shall not condemn agricultural land included within an 8 economic development area for any use unless the owner of 9 the agricultural land consents to condemnation or unless the 10 municipality determines that the land is necessary or useful 11 viable alternatives to the condemnation of agricultural land do 12 not exist and the acquisition of the property is necessary for 13 any of the following: 14 Sec. 14. NEW SECTION . 423B.11 Use of revenues —— 15 limitation. 16 The revenue raised by a local sales and services tax imposed 17 under this chapter by a county shall not be expended for any 18 purpose related to a project that includes the condemnation of 19 private property for the creation of a lake according to the 20 requirements of section 6A.22, subsection 2, paragraph “c” , 21 subparagraph (1), if the local sales and services tax has not 22 been approved at election in the area where the property to be 23 condemned is located. 24 Sec. 15. Section 455A.5, Code 2011, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 7. The authority granted to the commission 27 to acquire real property for purposes of carrying out a 28 duty related to development or maintenance of the recreation 29 resources of the state, including planning, acquisition, and 30 development of recreational projects, and areas and facilities 31 related to such projects, shall not include the authority to 32 acquire real property by eminent domain. 33 Sec. 16. Section 456A.24, subsection 2, unnumbered 34 paragraph 1, Code 2011, is amended to read as follows: 35 -8- LSB 1659HV (4) 84 md/sc 8/ 13

H.F. 603 Acquire by purchase, condemnation, lease, agreement, 1 gift, and devise lands or waters suitable for the purposes 2 hereinafter enumerated, and rights-of-way thereto, and to 3 maintain the same for the following purposes , to wit : 4 Sec. 17. Section 456A.24, Code 2011, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 15. The authority granted the department 7 to acquire real property for any statutory purpose relating to 8 the development or maintenance of the recreation resources of 9 the state, including planning, acquisition, and development 10 of recreational projects, and areas and facilities related to 11 such projects, shall not include the authority to acquire real 12 property by eminent domain. 13 Sec. 18. Section 461A.7, Code 2011, is amended to read as 14 follows: 15 461A.7 Eminent domain Purchase of lands —— public parks . 16 The commission may purchase or condemn lands from willing 17 sellers for public parks. No A contract for the purchase of 18 such public parks shall not be made to an amount in excess of 19 funds appropriated therefor by the general assembly. 20 Sec. 19. Section 461A.10, Code 2011, is amended to read as 21 follows: 22 461A.10 Title to lands. 23 The title to all lands purchased, condemned, or donated , 24 hereunder, for park or highway purposes and the title to all 25 lands purchased, condemned, or donated hereunder for highway 26 purposes , shall be taken in the name of the state and if 27 thereafter it shall be deemed advisable to sell any portion of 28 the land so purchased or condemned, the proceeds of such sale 29 shall be placed to the credit of the said public state parks 30 fund to be used for such park purposes. 31 Sec. 20. Section 463C.8, subsection 1, paragraph k, Code 32 2011, is amended to read as follows: 33 k. The power to acquire, own, hold, administer, and dispose 34 of property , except that such power is not a grant of authority 35 -9- LSB 1659HV (4) 84 md/sc 9/ 13

H.F. 603 to acquire property by eminent domain . 1 Sec. 21. REPEAL. Sections 461A.9 and 461A.75, Code 2011, 2 are repealed. 3 Sec. 22. EFFECTIVE UPON ENACTMENT AND APPLICABILITY. This 4 Act, being deemed of immediate importance, takes effect upon 5 enactment and applies to projects or condemnation proceedings 6 pending or commenced on or after that date. 7 EXPLANATION 8 This bill makes changes relating to eminent domain authority 9 and procedures. 10 The bill provides that proceedings for the acquisition of 11 property by eminent domain shall not be instituted by the state 12 without the signed authorization of the governor if the total 13 amount of private property to be condemned exceeds 500 acres. 14 The bill changes the standard of proof from a preponderance 15 of the evidence to clear and convincing evidence for an action 16 brought in district court challenging the exercise of eminent 17 domain authority or contesting condemnation proceedings. The 18 bill adds reasonable attorney fees and reasonable costs that 19 are attributable to certain condemnation proceedings relating 20 to the creation of a lake, up to $100,000, to the list of 21 expenses reimbursable by an acquiring agency to a property 22 owner. 23 The bill provides that property listed on the state register 24 of historic places shall not be removed from the register 25 solely for the purpose of allowing the property to be acquired 26 by condemnation. The bill also provides that property on the 27 state register of historic places may not be condemned unless 28 a joint resolution authorizing the condemnation is approved 29 by a vote of at least two-thirds of each house of the general 30 assembly and signed by the governor. 31 The bill provides that the authority to condemn property is 32 not conferred, and condemnation proceedings shall not commence, 33 until the governing body of the acquiring agency has declared 34 that adequate funding for the public improvement has been 35 -10- LSB 1659HV (4) 84 md/sc 10/ 13

H.F. 603 secured or is reasonably certain to be secured. 1 Current Code section 6B.4 requires the 28 persons appointed 2 by the board of supervisors to the list of persons eligible 3 to serve on a compensation commission to be residents of that 4 county. The bill allows such appointees to be residents of the 5 county or residents of contiguous counties. 6 The bill provides that the compensation commission 7 that meets to determine damages and appraise property in a 8 condemnation proceeding shall deliberate and vote in open 9 session. The bill also provides that, as an exception to 10 the general prohibition from communicating with a party to 11 the proceeding after deliberations commence, the commission 12 and each commissioner is permitted such communication if it 13 occurs in the presence of or with consent of the property 14 owner and the other parties or their agents. The bill retains 15 the compensation commission’s ability to deliberate in 16 closed session for condemnation proceedings undertaken by the 17 department of transportation. 18 The bill provides that, for purposes of exercising eminent 19 domain authority, “public use”, “public purpose”, or “public 20 improvement” does not include any project that receives state 21 funding or assistance through specified economic development, 22 tourism, or community betterment programs. 23 The bill provides that if relocation of a business or 24 farm operation is not economically feasible, the displaced 25 person may apply for payment of the loss of existing business 26 relationships because of the inability to relocate the business 27 or farm operation to a location similar in economic advantage 28 to the location from which the business or farm operation was 29 moved. 30 The bill adds a condition to the circumstances in which a 31 city may condemn land outside the city limits to provide that 32 condemnation may occur if viable alternatives do not exist 33 within the city and the acquisition of the land is necessary 34 for the purposes stated in current law. The bill also amends 35 -11- LSB 1659HV (4) 84 md/sc 11/ 13

H.F. 603 urban renewal law relating to the circumstances in which a 1 municipality may condemn agricultural land within an economic 2 development urban renewal area to provide that condemnation may 3 occur if viable alternatives do not exist and the acquisition 4 of the land is necessary for the purposes stated in current 5 law. 6 The bill provides that the department of natural resources 7 and the natural resource commission shall not exercise eminent 8 domain authority to acquire real property for purposes of 9 carrying out a duty related to development or maintenance of 10 the recreation resources of the state, including planning, 11 acquisition, and development of recreational projects, and 12 areas and facilities related to such projects. The bill 13 retains the department’s authority to acquire property through 14 condemnation for highway purposes. 15 The bill makes changes relating to eminent domain authority 16 in relation to development or creation of a lake. The bill 17 provides that, prior to making a determination that creation or 18 development of a lake is reasonable and necessary, an acquiring 19 agency must demonstrate by clear and convincing evidence that 20 no other prudent and feasible alternative for provision of a 21 drinking water source exists. The bill requires the data and 22 information used by the registered professional engineers to 23 analyze and determine the drinking water capacity needs to 24 first be approved by a committee appointed by the affected 25 property owners and comprised of more than 50 percent property 26 owners affected by the proposed condemnation action. The 27 committee is required to hold at least one public meeting 28 relating to such data and information prior to approval and 29 submission of the data and information to the registered 30 professional engineers. The bill provides that a landowner 31 affected by the proposed condemnation action may request a 32 second review or analysis, and the engineer shall be selected 33 by the committee appointed by the property owners affected by 34 the proposed condemnation action. The bill further provides 35 -12- LSB 1659HV (4) 84 md/sc 12/ 13

H.F. 603 that the acquiring agency shall pay for the services of such 1 an engineer. The bill provides that if private property is to 2 be condemned for development or creation of a lake, the plans, 3 analyses, applications, including any application for funding, 4 and other planning activities of the acquiring agency shall not 5 include or provide for the use of the lake for recreational 6 purposes. 7 The bill provides that when two years have elapsed since 8 property was condemned for the creation of a lake and the 9 property has not been used for or construction has not begun 10 for the purpose stated in the application, and the acquiring 11 agency has not taken action to dispose of the property pursuant 12 to Code section 6B.56, the acquiring agency shall, within 60 13 days, adopt a resolution offering the property for sale to the 14 prior owner at a price as provided in Code section 6B.56. If 15 the acquiring agency has not adopted a resolution within the 16 60-day time period, the prior owner may petition the acquiring 17 agency to offer the property for sale to the prior owner at a 18 price as provided in Code section 6B.56. The bill requires the 19 acquiring agency to give written notice to the owner at the 20 time damages are paid to the owner of the right to purchase the 21 property under such circumstances. 22 The bill provides that the revenue raised by a local sales 23 and services tax imposed under Code chapter 423B by a county 24 shall not be expended for any purpose related to a project 25 that includes the condemnation of private property for the 26 creation of a lake if the local sales and services tax has not 27 been approved at election in the area where the property to be 28 condemned is located. 29 The bill takes effect upon enactment and applies to projects 30 or condemnation proceedings pending or commenced on or after 31 that date. 32 -13- LSB 1659HV (4) 84 md/sc 13/ 13