House File 2048 - Introduced HOUSE FILE 2048 BY KAUFMANN and JACOBY A BILL FOR An Act relating to state and local government activities by 1 modifying provisions relating to eminent domain authority 2 and procedures, making appropriations for purposes relating 3 to passenger rail, and including effective date and 4 retroactive and other applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5195YH (7) 85 md/sc

H.F. 2048 DIVISION I 1 EMINENT DOMAIN 2 Section 1. NEW SECTION . 6A.15 Property on state historic 3 registry. 4 1. Property listed on the state register of historic places 5 maintained by the historical division of the department of 6 cultural affairs shall not be removed from the register solely 7 for the purpose of allowing acquisition of the property by 8 condemnation, unless such condemnation is undertaken by the 9 department of transportation. 10 2. Property listed on the state register of historic places 11 maintained by the historical division of the department of 12 cultural affairs shall not be condemned by the state or a 13 political subdivision unless a joint resolution authorizing 14 commencement of the condemnation proceedings is approved by a 15 vote of at least two-thirds of the members of both chambers of 16 the general assembly and signed by the governor. The approval 17 requirements of this subsection shall not apply to condemnation 18 undertaken by the department of transportation. 19 Sec. 2. Section 6A.19, Code 2014, is amended to read as 20 follows: 21 6A.19 Interpretative clause. 22 A grant in this chapter of right to take private property 23 for a public use shall not be construed as limiting a like 24 grant elsewhere in the Code for another and different use. 25 Unless specifically provided by law, this chapter shall not 26 be construed to limit or otherwise affect the application of 27 chapters 478 and 479 to the eminent domain authority of the 28 utilities division of the department of commerce. 29 Sec. 3. Section 6A.22, subsection 2, paragraph c, 30 subparagraph (1), Code 2014, 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 5195YH (7) 85 md/sc 1/ 11

H.F. 2048 In addition, the acquiring agency shall conduct a review of 1 prudent and feasible alternatives to provision of a drinking 2 water source prior to making a determination that such 3 lake development or creation is reasonable and necessary. 4 Development or creation of a lake as a surface drinking water 5 source includes all of the following: 6 (i) Construction of the dam, including sites for suitable 7 borrow material and the auxiliary spillway. 8 (ii) The water supply pool. 9 (iii) The sediment pool. 10 (iv) The flood control pool. 11 (v) The floodwater retarding pool. 12 (vi) The surrounding area upstream of the dam no higher in 13 elevation than the top of the dam’s elevation. 14 (vii) The appropriate setback distance required by state or 15 federal laws and regulations to protect drinking water supply. 16 (b) For purposes of this subparagraph (1), “number of acres 17 justified as reasonable and necessary for a surface drinking 18 water source” means according to guidelines of the United 19 States natural resource conservation service and according to 20 analyses of surface drinking water capacity needs conducted by 21 one or more registered professional engineers. The registered 22 professional engineers may, if appropriate, employ standards 23 or guidelines other than the guidelines of the United States 24 natural resource conservation service when determining the 25 number of acres justified as reasonable and necessary for 26 a surface drinking water source. The data and information 27 used by the registered professional engineers shall include 28 data and information relating to population and commercial 29 enterprise activity for the area from the two most recent 30 federal decennial censuses unless the district court of the 31 county in which the property is situated has determined by 32 a preponderance of the evidence that such data would not 33 accurately predict the population and commercial enterprise 34 activity of the area in the future. 35 -2- LSB 5195YH (7) 85 md/sc 2/ 11

H.F. 2048 (c) A second review or analysis of the drinking water 1 capacity needs shall be performed upon receipt by the acquiring 2 agency of a petition signed by not less than twenty-five 3 percent of the affected property owners. The registered 4 professional engineer to perform the second review or analysis 5 shall be selected by a committee appointed by the affected 6 property owners and whose membership is comprised of at 7 least fifty percent property owners affected by the proposed 8 condemnation action. The acquiring agency shall be responsible 9 for paying the fees and expenses of such an engineer. 10 (d) If private property is to be condemned for development 11 or creation of a lake, the plans, analyses, applications, 12 including any application for funding, and other planning 13 activities of the acquiring agency shall not include or provide 14 for the use of the lake for recreational purposes. 15 Sec. 4. Section 6B.54, subsection 10, paragraph a, Code 16 2014, is amended by adding the following new subparagraph: 17 NEW SUBPARAGRAPH . (3) Reasonable attorney fees and 18 reasonable costs not to exceed one hundred thousand dollars, 19 attributable to a determination that the creation of a lake 20 through condemnation includes a future recreational use or that 21 a violation of section 6A.22, subsection 2, paragraph “c” , 22 subparagraph (1), subparagraph division (d), has occurred, if 23 such fees and costs are not otherwise provided under section 24 6B.33. 25 Sec. 5. NEW SECTION . 6B.56B Disposition of condemned 26 property —— two-year time period. 27 1. When two years have elapsed since property was condemned 28 for the creation of a lake according to the requirements of 29 section 6A.22, subsection 2, paragraph “c” , subparagraph (1), 30 and the property has not been used for or construction has 31 not progressed substantially from the date the property was 32 condemned for the purpose stated in the application filed 33 pursuant to section 6B.3, and the acquiring agency has not 34 taken action to dispose of the property pursuant to section 35 -3- LSB 5195YH (7) 85 md/sc 3/ 11

H.F. 2048 6B.56, the acquiring agency shall, within sixty days, adopt a 1 resolution offering the property for sale to the prior owner 2 at a price as provided in section 6B.56. If the resolution 3 adopted approves an offer of sale to the prior owner, the offer 4 shall be made in writing and mailed by certified mail to the 5 prior owner. The prior owner has one hundred eighty days after 6 the offer is mailed to purchase the property from the acquiring 7 agency. 8 2. If the acquiring agency has not adopted a resolution 9 described in subsection 1 within the sixty-day time period, the 10 prior owner may, in writing, petition the acquiring agency to 11 offer the property for sale to the prior owner at a price as 12 provided in section 6B.56. Within sixty days after receipt of 13 such a petition, the acquiring agency shall adopt a resolution 14 described in subsection 1. If the acquiring agency does not 15 adopt such a resolution within sixty days after receipt of the 16 petition, the acquiring agency is deemed to have offered the 17 property for sale to the prior owner. 18 3. The acquiring agency shall give written notice to the 19 owner of the right to purchase the property under this section 20 at the time damages are paid to the owner. 21 Sec. 6. Section 403.7, subsection 1, unnumbered paragraph 22 1, Code 2014, is amended to read as follows: 23 A municipality shall have the right to acquire by 24 condemnation any interest in real property, including a fee 25 simple title thereto, which it may deem necessary for or in 26 connection with an urban renewal project under this chapter , 27 subject to the limitations on eminent domain authority 28 in chapter chapters 6A and 6B . However, a municipality 29 shall not condemn agricultural land included within an 30 economic development area for any use unless the owner of 31 the agricultural land consents to condemnation or unless the 32 municipality determines that the land is necessary or useful 33 for any of the following: 34 Sec. 7. NEW SECTION . 423B.11 Use of revenues —— limitation. 35 -4- LSB 5195YH (7) 85 md/sc 4/ 11

H.F. 2048 The revenue raised by a local sales and services tax imposed 1 under this chapter by a county shall not be expended for any 2 purpose related to a project that includes the condemnation of 3 private property for the creation of a lake according to the 4 requirements of section 6A.22, subsection 2, paragraph “c” , 5 subparagraph (1), if the local sales and services tax has not 6 been approved at election in the area where the property to be 7 condemned is located. 8 Sec. 8. Section 455A.5, Code 2014, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 7. The authority granted to the commission 11 to acquire real property for purposes of carrying out a 12 duty related to development or maintenance of the recreation 13 resources of the state, including planning, acquisition, and 14 development of recreational projects, and areas and facilities 15 related to such projects, shall not include the authority to 16 acquire real property by eminent domain. 17 Sec. 9. Section 456A.24, subsection 2, unnumbered paragraph 18 1, Code 2014, is amended to read as follows: 19 Acquire by purchase, condemnation, lease, agreement, 20 gift, and devise lands or waters suitable for the purposes 21 hereinafter enumerated, and rights-of-way thereto, and to 22 maintain the same for the following purposes , to wit : 23 Sec. 10. Section 456A.24, Code 2014, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 15. The authority granted the department 26 to acquire real property for any statutory purpose relating to 27 the development or maintenance of the recreation resources of 28 the state, including planning, acquisition, and development 29 of recreational projects, and areas and facilities related to 30 such projects, shall not include the authority to acquire real 31 property by eminent domain. 32 Sec. 11. Section 461A.7, Code 2014, is amended to read as 33 follows: 34 461A.7 Eminent domain Purchase of lands —— public parks . 35 -5- LSB 5195YH (7) 85 md/sc 5/ 11

H.F. 2048 The commission may purchase or condemn lands from willing 1 sellers for public parks. No A contract for the purchase of 2 such public parks shall not be made to an amount in excess of 3 funds appropriated therefor by the general assembly. 4 Sec. 12. Section 461A.10, Code 2014, is amended to read as 5 follows: 6 461A.10 Title to lands. 7 The title to all lands purchased, condemned, or donated , 8 hereunder, for park or highway purposes and the title to all 9 lands purchased, condemned, or donated hereunder for highway 10 purposes , shall be taken in the name of the state and if 11 thereafter it shall be deemed advisable to sell any portion of 12 the land so purchased or condemned, the proceeds of such sale 13 shall be placed to the credit of the said public state parks 14 fund to be used for such park purposes. 15 Sec. 13. Section 463C.8, subsection 1, paragraph k, Code 16 2014, is amended to read as follows: 17 k. The power to acquire, own, hold, administer, and dispose 18 of property , except that such power is not a grant of authority 19 to acquire property by eminent domain . 20 Sec. 14. REPEAL. Sections 461A.9 and 461A.75, Code 2014, 21 are repealed. 22 Sec. 15. SEVERABILITY. If any provision of this division of 23 this Act is held invalid, the invalidity shall not affect other 24 provisions or applications of this division of this Act which 25 can be given effect without the invalid provision, and to this 26 end the provisions of this division of this Act are severable 27 as provided in section 4.12. 28 Sec. 16. EFFECTIVE UPON ENACTMENT. This division of this 29 Act, being deemed of immediate importance, takes effect upon 30 enactment. 31 Sec. 17. APPLICABILITY. Except as otherwise provided in 32 this division of this Act, this division of this Act applies to 33 projects or condemnation proceedings pending or commenced on or 34 after the effective date of this division of this Act. 35 -6- LSB 5195YH (7) 85 md/sc 6/ 11

H.F. 2048 Sec. 18. RETROACTIVE APPLICABILITY. Notwithstanding any 1 provision of law to the contrary, the following provision or 2 provisions of this division of this Act apply retroactively to 3 projects or condemnation proceedings pending or commenced on or 4 after February 15, 2013: 5 1. The section of this division of this Act amending section 6 6A.22. 7 2. The section of this division of this Act enacting section 8 6B.56B. 9 DIVISION II 10 PASSENGER RAIL APPROPRIATION 11 Sec. 19. DEPARTMENT OF TRANSPORTATION —— PASSENGER 12 RAIL. There is appropriated from the rebuild Iowa 13 infrastructure fund to the department of transportation for the 14 fiscal year beginning July 1, 2014, and ending June 30, 2015, 15 the following amount, or so much thereof as is necessary, for 16 the purposes designated: 17 For deposit into the passenger rail service revolving 18 fund created in section 327J.2 for matching federal funding 19 available through the federal Passenger Rail Investment 20 and Improvement Act of 2008 for passenger rail service, 21 notwithstanding section 8.57, subsection 5, paragraph “c”: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,500,000 23 Sec. 20. REVERSION. For purposes of section 8.33, unless 24 specifically provided otherwise, unencumbered or unobligated 25 moneys made from an appropriation in this division of this Act 26 shall not revert but shall remain available for expenditure for 27 the purposes designated until the close of the fiscal year that 28 ends three years after the end of the fiscal year for which the 29 appropriation was made. However, if the project or projects 30 for which such appropriation was made are completed in an 31 earlier fiscal year, unencumbered or unobligated moneys shall 32 revert at the close of that same fiscal year. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -7- LSB 5195YH (7) 85 md/sc 7/ 11

H.F. 2048 the explanation’s substance by the members of the general assembly. 1 This bill makes changes relating to eminent domain authority 2 and procedures and makes appropriations for certain passenger 3 rail activities. 4 Division I of the bill provides that property listed on the 5 state register of historic places shall not be removed from 6 the register solely for the purpose of allowing the property 7 to be acquired by condemnation unless the condemnation is 8 undertaken by the department of transportation. The bill also 9 provides that property on the state register of historic places 10 may not be condemned unless a joint resolution authorizing 11 the condemnation is approved by a vote of at least two-thirds 12 of each house of the general assembly and signed by the 13 governor. This approval procedure, however, does not apply to 14 a condemnation undertaken by the department of transportation. 15 Division I of the bill specifies that Code chapter 6A, unless 16 specifically provided by law, is not to be construed to limit 17 or otherwise affect the application of Code chapters 478 and 18 479 to the eminent domain authority of the utilities division 19 of the department of commerce. 20 Division I of the bill makes changes relating to eminent 21 domain authority in relation to development or creation of 22 a lake. The bill provides that when determining the number 23 of acres justified as reasonable and necessary for a surface 24 drinking water source, the registered professional engineers 25 may, if appropriate, employ standards or guidelines other 26 than the guidelines of the United States natural resource 27 conservation service. The bill requires the data and 28 information used by the registered professional engineers 29 to include data and information relating to population and 30 commercial enterprise activity for the area from the two most 31 recent federal decennial censuses unless the district court of 32 the county in which the property is situated has determined 33 by a preponderance of the evidence that such data would not 34 accurately predict the population and commercial enterprise 35 -8- LSB 5195YH (7) 85 md/sc 8/ 11

H.F. 2048 activity of the area in the future. 1 Division I of the bill also provides that a second review 2 or analysis of the drinking water capacity needs shall be 3 performed upon receipt by the acquiring agency of a petition 4 signed by not less than 25 percent of the affected property 5 owners. The registered professional engineer to perform the 6 second review or analysis shall be selected by a committee 7 appointed by the affected property owners and comprised of 8 at least 50 percent property owners affected by the proposed 9 condemnation action. The division further provides that 10 the acquiring agency shall pay for the services of such an 11 engineer. 12 Division I of the bill provides that if private property 13 is to be condemned for development or creation of a lake, 14 the plans, analyses, applications, including any application 15 for funding, and other planning activities of the acquiring 16 agency shall not include or provide for the use of the lake for 17 recreational purposes. 18 Division I of the bill adds reasonable attorney fees and 19 reasonable costs that are attributable to certain condemnation 20 proceedings relating to the creation of a lake, up to $100,000, 21 to the list of expenses reimbursable by an acquiring agency to 22 a property owner. 23 Division I of the bill provides that when two years have 24 elapsed since property was condemned for the creation of a 25 lake and the property has not been used for or construction 26 has not progressed substantially for the purpose stated in the 27 application, and the acquiring agency has not taken action to 28 dispose of the property pursuant to Code section 6B.56, the 29 acquiring agency shall, within 60 days, adopt a resolution 30 offering the property for sale to the prior owner at a price 31 as provided in Code section 6B.56. If the acquiring agency 32 has not adopted a resolution within the 60-day time period, 33 the prior owner may petition the acquiring agency to offer the 34 property for sale to the prior owner at a price as provided in 35 -9- LSB 5195YH (7) 85 md/sc 9/ 11

H.F. 2048 Code section 6B.56. The bill requires the acquiring agency to 1 give written notice to the owner at the time damages are paid 2 to the owner of the right to purchase the property under such 3 circumstances. 4 Division I of the bill also amends urban renewal law 5 relating to the circumstances in which a municipality may 6 condemn agricultural land within an economic development urban 7 renewal area to provide that condemnation may occur if viable 8 alternatives do not exist and the acquisition of the land is 9 necessary for the purposes stated in current law. 10 Division I of the bill provides that the revenue raised by a 11 local sales and services tax imposed under Code chapter 423B 12 by a county shall not be expended for any purpose related to a 13 project that includes the condemnation of private property for 14 the creation of a lake if the local sales and services tax has 15 not been approved at election in the area where the property to 16 be condemned is located. 17 Division I of the bill provides that the department of 18 natural resources and the natural resource commission shall 19 not exercise eminent domain authority to acquire real property 20 for purposes of carrying out a duty related to development or 21 maintenance of the recreation resources of the state, including 22 planning, acquisition, and development of recreational 23 projects, and areas and facilities related to such projects. 24 The bill retains the department’s authority to acquire property 25 through condemnation for highway purposes. 26 Except as otherwise provided in division II of the bill, 27 division II takes effect upon enactment and applies to projects 28 or condemnation proceedings pending or commenced on or after 29 that date. 30 Division I of the bill provides that the provisions of 31 division I amending Code section 6A.22 and enacting Code 32 section 6B.56B apply retroactively to projects or condemnation 33 proceedings pending or commenced on or after February 15, 2013. 34 Division II of the bill appropriates from the rebuild Iowa 35 -10- LSB 5195YH (7) 85 md/sc 10/ 11

H.F. 2048 infrastructure fund to the department of transportation for 1 the fiscal year beginning July 1, 2014, $5,500,000 for deposit 2 into the passenger rail service revolving fund created in Code 3 section 327J.2 for matching federal funding available through 4 the federal Passenger Rail Investment and Improvement Act of 5 2008 for passenger rail service. The bill also provides that 6 for purposes of Code section 8.33, unless specifically provided 7 otherwise, unencumbered or unobligated moneys made from an 8 appropriation in division II shall not revert but shall remain 9 available for expenditure for the purposes designated until the 10 close of the fiscal year that ends three years after the end of 11 the fiscal year for which the appropriation was made. However, 12 if the project or projects for which such appropriation was 13 made are completed in an earlier fiscal year, unencumbered 14 or unobligated moneys shall revert at the close of that same 15 fiscal year. 16 -11- LSB 5195YH (7) 85 md/sc 11/ 11