H.F. 64 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 shall not commence without the signed authorization of 13 the governor. 14 3. Notwithstanding any provision of law to the contrary, 15 the condemnation authority granted in this section shall not 16 extend to the department of natural resources if the department 17 is seeking to acquire real property for purposes of carrying 18 out a duty related to the development or maintenance of 19 the recreation resources of the state, including planning, 20 acquisition, and development of recreational projects, and 21 areas and facilities related to such projects. 22 Sec. 2. NEW SECTION . 6A.15 Property on state historic 23 registry. 24 Property listed on the state register of historic places 25 maintained by the historical division of the department of 26 cultural affairs shall not be removed from the register solely 27 for the purpose of allowing acquisition of the property by 28 condemnation. 29 Sec. 3. Section 6A.22, subsection 2, paragraph c, 30 subparagraph (1), Code 2011, is amended to read as follows: 31 (1) (a) If private property is to be condemned for 32 development or creation of a lake, only that number of acres 33 justified as reasonable and necessary for a surface drinking 34 water source, and not otherwise acquired, may be condemned. 35 -1- LSB 1659YH (15) 84 md/sc 1/ 11

H.F. 64 In addition Prior to making a determination that such lake 1 development or creation is reasonable and necessary , the 2 acquiring agency shall conduct a review of demonstrate by clear 3 and convincing evidence that no other prudent and feasible 4 alternatives to alternative for provision of a drinking 5 water source prior to making a determination that such lake 6 development or creation is reasonable and necessary exists . 7 Development or creation of a lake as a surface drinking water 8 source includes all of the following: 9 (i) Construction of the dam, including sites for suitable 10 borrow material and the auxiliary spillway. 11 (ii) The water supply pool. 12 (iii) The sediment pool. 13 (iv) The flood control pool. 14 (v) The floodwater retarding pool. 15 (vi) The surrounding area upstream of the dam no higher in 16 elevation than the top of the dam’s elevation. 17 (vii) The appropriate setback distance required by state or 18 federal laws and regulations to protect drinking water supply. 19 (b) For purposes of this subparagraph (1), “number of acres 20 justified as reasonable and necessary for a surface drinking 21 water source” means according to guidelines of the United 22 States natural resource conservation service and according to 23 analyses of surface drinking water capacity needs conducted by 24 one or more registered professional engineers using standards 25 alternative to the federal guidelines . Any guidelines or 26 analyses related to future drinking water capacity needs shall 27 be based on the current rate of drinking water usage in the 28 area to be served by the surface drinking water source. 29 (c) Guidelines relating to drinking water capacity needs 30 in time of drought shall not be used in any analysis performed 31 pursuant to this subparagraph (1). An analysis performed 32 pursuant to this subparagraph (1) shall include information on 33 groundwater resources in the area and the potential for the use 34 of such resources to meet drinking water capacity needs. 35 -2- LSB 1659YH (15) 84 md/sc 2/ 11

H.F. 64 (d) A second review or analysis may be requested by any 1 landowner affected by the proposed condemnation action, and the 2 engineer shall be selected by a committee of private landowners 3 affected by the proposed condemnation action. The acquiring 4 agency shall be responsible for paying the fees and expenses of 5 such an engineer. 6 (e) A landowner affected by the proposed condemnation 7 action may request a public hearing regarding the influence 8 of a federal agency on the lake creation or development 9 project, on the proposed condemnation actions related to the 10 project, and on the use of federal guidelines in analyzing 11 drinking water capacity needs. The hearing shall be conducted 12 by a person who is not involved with the lake creation or 13 development, and the services of such person in conducting the 14 hearing shall be paid by the acquiring agency. 15 Sec. 4. Section 6A.22, subsection 2, Code 2011, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . d. Notwithstanding paragraphs “a” , “b” , and 18 “c” , “public use” , “public purpose” , or “public improvement” does 19 not include any project that receives a state appropriation or 20 that receives or is awarded state funds or other funding by 21 means of incentives, as authorized pursuant to chapter 12, 15, 22 15A, 15E, 15F, 15G, or 16. 23 Sec. 5. Section 6A.24, subsection 3, Code 2011, is amended 24 to read as follows: 25 3. For any action brought under this section , the burden 26 of proof shall be on the acquiring agency to prove by a 27 preponderance of the clear and convincing evidence that the 28 finding of public use, public purpose, or public improvement 29 meets the definition of those terms. If a property owner or a 30 contract purchaser of record or a tenant occupying the property 31 under a recorded lease prevails in an action brought under 32 this section , the acquiring agency shall be required to pay 33 the costs, including reasonable attorney fees, of the adverse 34 party. 35 -3- LSB 1659YH (15) 84 md/sc 3/ 11

H.F. 64 Sec. 6. Section 6B.2C, Code 2011, is amended to read as 1 follows: 2 6B.2C Approval of the public improvement. 3 The authority to condemn is not conferred, and the 4 condemnation proceedings shall not commence, unless the 5 governing body for the acquiring agency approves , by 6 resolution, declares that adequate funding for the public 7 improvement has been secured, that the use of condemnation 8 for the public improvement is approved, and that there is a 9 reasonable expectation the applicant will be able to achieve 10 its public purpose, comply with all applicable standards, and 11 obtain the necessary permits. 12 Sec. 7. Section 6B.14, subsection 2, Code 2011, is amended 13 to read as follows: 14 2. Prior to the meeting of the commission, the commission 15 or a commissioner shall not communicate with the applicant, 16 property owner, or tenant, or their agents, regarding the 17 condemnation proceedings. The commissioners shall meet in open 18 session to view the property and to receive evidence, but may 19 and shall deliberate and vote in closed open session. When 20 deliberating in closed session, the meeting is closed to all 21 persons who are not commissioners except for personnel from 22 the sheriff’s office if such personnel is requested by the 23 commission. After deliberations commence, the commission and 24 each commissioner is prohibited from communicating with any 25 party to the proceeding unless such communication occurs in the 26 presence of or with the consent of the property owner and other 27 parties who appeared before the commission or their agents . 28 However, if the commission is deliberating in closed session, 29 and after deliberations commence the commission requires 30 further information from a party or a witness, the commission 31 shall notify the property owner and the acquiring agency that 32 they are allowed to attend the meeting at which such additional 33 information shall be provided but only for that period of time 34 during which the additional information is being provided. 35 -4- LSB 1659YH (15) 84 md/sc 4/ 11

H.F. 64 The property owner and the acquiring agency shall be given a 1 reasonable opportunity to attend the meeting. The commission 2 shall keep minutes of all its meetings showing the date, time, 3 and place, the members present, and the action taken at each 4 meeting. The minutes shall show the results of each vote taken 5 and information sufficient to indicate the vote of each member 6 present. The vote of each member present shall be made public 7 at the open session. The minutes shall be public records open 8 to public inspection. 9 Sec. 8. Section 6B.54, subsection 10, paragraph a, Code 10 2011, is amended by adding the following new subparagraph: 11 NEW SUBPARAGRAPH . (3) Reasonable attorney fees and 12 reasonable costs not to exceed one hundred thousand dollars, 13 including expert witness fees and fees relating to appraisal of 14 the property, not otherwise provided under section 6B.33. 15 Sec. 9. NEW SECTION . 68B.9 Ban on certain lobbying 16 activities on behalf of political subdivisions. 17 A political subdivision that collects and expends property 18 taxes shall not use public funds of any kind to pay a person, 19 organization, or other entity to act as a lobbyist in relation 20 to any legislation relating specifically to eminent domain 21 authority or condemnation procedures. 22 Sec. 10. Section 316.4, subsection 1, Code 2011, is amended 23 to read as follows: 24 1. If a program or project undertaken by a displacing agency 25 will result in the displacement of a person, the displacing 26 agency shall make a payment to the displaced person, upon 27 proper application as approved by the displacing agency, for 28 actual reasonable and necessary expenses incurred in moving the 29 person, the person’s family, business, farm operation, or other 30 personal property subject to rules and limits established by 31 the department. The payment may also provide for actual direct 32 losses of tangible personal property, purchase of substitute 33 personal property, business reestablishment expenses, storage 34 expenses, and expenses incurred in searching for a replacement 35 -5- LSB 1659YH (15) 84 md/sc 5/ 11

H.F. 64 business or farm. If relocation of a business or farm 1 operation is not economically feasible, the displaced person 2 may also apply for payment of the loss of existing business 3 relationships because of the inability to relocate the business 4 or farm operation to a location similar in economic advantage 5 to the location from which the business or farm operation was 6 displaced. 7 Sec. 11. Section 364.4, subsection 1, paragraph a, 8 unnumbered paragraph 1, Code 2011, is amended to read as 9 follows: 10 Acquire, hold, and dispose of property outside the city in 11 the same manner as within. However, the power of a city to 12 acquire property outside the city does not include the power 13 to acquire property outside the city by eminent domain, except 14 if viable alternatives do not exist within the city and the 15 acquisition of the property is necessary for the following, 16 subject to the provisions of chapters 6A and 6B : 17 Sec. 12. Section 403.7, subsection 1, unnumbered paragraph 18 1, Code 2011, is amended to read as follows: 19 A municipality shall have the right to acquire by 20 condemnation any interest in real property, including a fee 21 simple title thereto, which it may deem necessary for or in 22 connection with an urban renewal project under this chapter , 23 subject to the limitations on eminent domain authority 24 in chapter chapters 6A and 6B . However, a municipality 25 shall not condemn agricultural land included within an 26 economic development area for any use unless the owner of 27 the agricultural land consents to condemnation or unless the 28 municipality determines that the land is necessary or useful 29 viable alternatives to the condemnation of agricultural land do 30 not exist and the acquisition of the property is necessary for 31 any of the following: 32 Sec. 13. Section 455A.5, Code 2011, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 7. The authority granted to the commission 35 -6- LSB 1659YH (15) 84 md/sc 6/ 11

H.F. 64 to acquire real property for purposes of carrying out a 1 duty related to development or maintenance of the recreation 2 resources of the state, including planning, acquisition, and 3 development of recreational projects, and areas and facilities 4 related to such projects, shall not include the authority to 5 acquire real property by eminent domain. 6 Sec. 14. Section 456A.24, subsection 2, unnumbered 7 paragraph 1, Code 2011, is amended to read as follows: 8 Acquire by purchase, condemnation, lease, agreement, 9 gift, and devise lands or waters suitable for the purposes 10 hereinafter enumerated, and rights-of-way thereto, and to 11 maintain the same for the following purposes , to wit : 12 Sec. 15. Section 456A.24, Code 2011, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 15. The authority granted the department 15 to acquire real property for any statutory purpose relating to 16 the development or maintenance of the recreation resources of 17 the state, including planning, acquisition, and development 18 of recreational projects, and areas and facilities related to 19 such projects, shall not include the authority to acquire real 20 property by eminent domain. 21 Sec. 16. Section 461A.7, Code 2011, is amended to read as 22 follows: 23 461A.7 Eminent domain Purchase of lands —— public parks . 24 The commission may purchase or condemn lands from willing 25 sellers for public parks. No A contract for the purchase of 26 such public parks shall not be made to an amount in excess of 27 funds appropriated therefor by the general assembly. 28 Sec. 17. Section 461A.10, Code 2011, is amended to read as 29 follows: 30 461A.10 Title to lands. 31 The title to all lands purchased, condemned, or donated , 32 hereunder, for park or highway purposes and the title to all 33 lands purchased, condemned, or donated hereunder for highway 34 purposes , shall be taken in the name of the state and if 35 -7- LSB 1659YH (15) 84 md/sc 7/ 11

H.F. 64 thereafter it shall be deemed advisable to sell any portion of 1 the land so purchased or condemned, the proceeds of such sale 2 shall be placed to the credit of the said public state parks 3 fund to be used for such park purposes. 4 Sec. 18. Section 463C.8, subsection 1, paragraph k, Code 5 2011, is amended to read as follows: 6 k. The power to acquire, own, hold, administer, and dispose 7 of property , except that such power is not a grant of authority 8 to acquire property by eminent domain . 9 Sec. 19. REPEAL. Sections 461A.9 and 461A.75, Code 2011, 10 are repealed. 11 Sec. 20. EFFECTIVE UPON ENACTMENT AND APPLICABILITY. This 12 Act, being deemed of immediate importance, takes effect upon 13 enactment and applies to projects or condemnation proceedings 14 pending or commenced on or after that date. 15 EXPLANATION 16 This bill makes changes relating to eminent domain authority 17 and procedures. 18 The bill provides that proceedings for the acquisition of 19 property by eminent domain shall not be instituted by the state 20 without the signed authorization of the governor. 21 The bill changes the standard of proof from a preponderance 22 of the evidence to clear and convincing evidence for an action 23 brought in district court challenging the exercise of eminent 24 domain authority or contesting condemnation proceedings. The 25 bill adds reasonable attorney fees and reasonable costs, up to 26 $100,000, to the list of expenses reimbursable by an acquiring 27 agency to a property owner. 28 The bill provides that property listed on the state register 29 of historic places shall not be removed from the register 30 solely for the purpose of allowing the property to be acquired 31 by condemnation. 32 The bill provides that the authority to condemn property is 33 not conferred, and condemnation proceedings shall not commence, 34 until the governing body of the acquiring agency has declared 35 -8- LSB 1659YH (15) 84 md/sc 8/ 11

H.F. 64 that adequate funding for the public improvement has been 1 secured. 2 The bill prohibits a political subdivision that collects 3 and expends property taxes from using any public funds to 4 pay a person, organization, or other entity to lobby on any 5 legislation relating specifically to eminent domain authority 6 or condemnation procedures. 7 The bill provides that the compensation commission 8 that meets to determine damages and appraise property in a 9 condemnation proceeding shall deliberate and vote in open 10 session. The bill also provides that, as an exception to the 11 general prohibition from communicating with a party to the 12 proceeding after deliberations commence, the commission and 13 each commissioner is permitted such communication if it occurs 14 in the presence of or with consent of the property owner and 15 the other parties or their agents. 16 The bill provides that, for purposes of exercising eminent 17 domain authority, “public use”, “public purpose”, or “public 18 improvement” does not include any project that receives state 19 funding or assistance through specified economic development, 20 tourism, or community betterment programs. 21 The bill provides that if relocation of a business or 22 farm operation is not economically feasible, the displaced 23 person may apply for payment of the loss of existing business 24 relationships because of the inability to relocate the business 25 or farm operation to a location similar in economic advantage 26 to the location from which the business or farm operation was 27 moved. 28 The bill adds a condition to the circumstances in which a 29 city may condemn land outside the city limits to provide that 30 condemnation may occur if viable alternatives do not exist 31 within the city and the acquisition of the land is necessary 32 for the purposes stated in current law. The bill also amends 33 urban renewal law relating to the circumstances in which a 34 municipality may condemn agricultural land within an economic 35 -9- LSB 1659YH (15) 84 md/sc 9/ 11

H.F. 64 development urban renewal area to provide that condemnation may 1 occur if viable alternatives do not exist and the acquisition 2 of the land is necessary for the purposes stated in current 3 law. 4 The bill provides that the department of natural resources 5 and the natural resource commission shall not exercise eminent 6 domain authority to acquire real property for purposes of 7 carrying out a duty related to development or maintenance of 8 the recreation resources of the state, including planning, 9 acquisition, and development of recreational projects, and 10 areas and facilities related to such projects. The bill 11 retains the department’s authority to acquire property through 12 condemnation for highway purposes. 13 The bill makes changes relating to eminent domain authority 14 in relation to development or creation of a lake. The bill 15 provides that, prior to making a determination that creation or 16 development of a lake is reasonable and necessary, an acquiring 17 agency must demonstrate by clear and convincing evidence that 18 no other prudent and feasible alternative for provision of a 19 drinking water source exists. The bill also amends provisions 20 relating to the guidelines or analyses to be used when 21 determining future drinking water capacity needs. The bill 22 provides that a landowner affected by the proposed condemnation 23 action may request a second review or analysis, and the 24 engineer shall be selected by a committee of private landowners 25 affected by the proposed condemnation action. The bill 26 further provides that the acquiring agency shall pay for the 27 services of such an engineer. The bill further provides that 28 an affected landowner may request a public hearing, conducted 29 by a neutral party, on the influence of a federal agency on the 30 lake project, on the proposed condemnation actions, and on the 31 use of federal guidelines in analyzing drinking water capacity 32 needs. The services of the person conducting the hearing shall 33 be paid by the acquiring agency. 34 The bill takes effect upon enactment and applies to projects 35 -10- LSB 1659YH (15) 84 md/sc 10/ 11