House File 219 - Introduced HOUSE FILE 219 BY KAUFMANN , JACOBY , KRESSIG , LENSING , BYRNES , WOOD , STUTSMAN , MUHLBAUER , LYKAM , MOORE , HIGHFILL , SHAW , J. SMITH , HESS , HEARTSILL , VANDER LINDEN , GARRETT , SANDS , FISHER , SALMON , BEARINGER , HUSEMAN , HEIN , SCHULTZ , R. OLSON , LANDON , GRASSLEY , HAGENOW , and ANDERSON A BILL FOR An Act relating to eminent domain authority and procedures and 1 including effective date and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1757YH (5) 85 md/sc

H.F. 219 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 2013, 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 2013, 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 1757YH (5) 85 md/sc 1/ 9

H.F. 219 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 1757YH (5) 85 md/sc 2/ 9

H.F. 219 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 2013, 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 1757YH (5) 85 md/sc 3/ 9

H.F. 219 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 364.4, subsection 1, paragraph a, 20 unnumbered paragraph 1, Code 2013, is amended to read as 21 follows: 22 Acquire, hold, and dispose of property outside the city in 23 the same manner as within. However, the power of a city to 24 acquire property outside the city does not include the power 25 to acquire property outside the city by eminent domain, except 26 if viable alternatives do not exist within the city and the 27 acquisition of the property is necessary for the following, 28 subject to the provisions of chapters 6A and 6B : 29 Sec. 7. Section 403.7, subsection 1, unnumbered paragraph 30 1, Code 2013, is amended to read as follows: 31 A municipality shall have the right to acquire by 32 condemnation any interest in real property, including a fee 33 simple title thereto, which it may deem necessary for or in 34 connection with an urban renewal project under this chapter , 35 -4- LSB 1757YH (5) 85 md/sc 4/ 9

H.F. 219 subject to the limitations on eminent domain authority 1 in chapter chapters 6A and 6B . However, a municipality 2 shall not condemn agricultural land included within an 3 economic development area for any use unless the owner of 4 the agricultural land consents to condemnation or unless the 5 municipality determines that the land is necessary or useful 6 viable alternatives to the condemnation of agricultural land do 7 not exist and the acquisition of the property is necessary for 8 any of the following: 9 Sec. 8. NEW SECTION . 423B.11 Use of revenues —— limitation. 10 The revenue raised by a local sales and services tax imposed 11 under this chapter by a county shall not be expended for any 12 purpose related to a project that includes the condemnation of 13 private property for the creation of a lake according to the 14 requirements of section 6A.22, subsection 2, paragraph “c” , 15 subparagraph (1), if the local sales and services tax has not 16 been approved at election in the area where the property to be 17 condemned is located. 18 Sec. 9. Section 455A.5, Code 2013, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 7. The authority granted to the commission 21 to acquire real property for purposes of carrying out a 22 duty related to development or maintenance of the recreation 23 resources of the state, including planning, acquisition, and 24 development of recreational projects, and areas and facilities 25 related to such projects, shall not include the authority to 26 acquire real property by eminent domain. 27 Sec. 10. Section 456A.24, subsection 2, unnumbered 28 paragraph 1, Code 2013, is amended to read as follows: 29 Acquire by purchase, condemnation, lease, agreement, 30 gift, and devise lands or waters suitable for the purposes 31 hereinafter enumerated, and rights-of-way thereto, and to 32 maintain the same for the following purposes , to wit : 33 Sec. 11. Section 456A.24, Code 2013, is amended by adding 34 the following new subsection: 35 -5- LSB 1757YH (5) 85 md/sc 5/ 9

H.F. 219 NEW SUBSECTION . 15. The authority granted the department 1 to acquire real property for any statutory purpose relating to 2 the development or maintenance of the recreation resources of 3 the state, including planning, acquisition, and development 4 of recreational projects, and areas and facilities related to 5 such projects, shall not include the authority to acquire real 6 property by eminent domain. 7 Sec. 12. Section 461A.7, Code 2013, is amended to read as 8 follows: 9 461A.7 Eminent domain Purchase of lands —— public parks . 10 The commission may purchase or condemn lands from willing 11 sellers for public parks. No A contract for the purchase of 12 such public parks shall not be made to an amount in excess of 13 funds appropriated therefor by the general assembly. 14 Sec. 13. Section 461A.10, Code 2013, is amended to read as 15 follows: 16 461A.10 Title to lands. 17 The title to all lands purchased, condemned, or donated , 18 hereunder, for park or highway purposes and the title to all 19 lands purchased, condemned, or donated hereunder for highway 20 purposes , shall be taken in the name of the state and if 21 thereafter it shall be deemed advisable to sell any portion of 22 the land so purchased or condemned, the proceeds of such sale 23 shall be placed to the credit of the said public state parks 24 fund to be used for such park purposes. 25 Sec. 14. Section 463C.8, subsection 1, paragraph k, Code 26 2013, is amended to read as follows: 27 k. The power to acquire, own, hold, administer, and dispose 28 of property , except that such power is not a grant of authority 29 to acquire property by eminent domain . 30 Sec. 15. REPEAL. Sections 461A.9 and 461A.75, Code 2013, 31 are repealed. 32 Sec. 16. EFFECTIVE UPON ENACTMENT. This Act, being deemed 33 of immediate importance, takes effect upon enactment. 34 Sec. 17. APPLICABILITY. This Act applies to projects or 35 -6- LSB 1757YH (5) 85 md/sc 6/ 9

H.F. 219 condemnation proceedings pending or commenced on or after the 1 effective date of this Act. 2 EXPLANATION 3 This bill makes changes relating to eminent domain authority 4 and procedures. 5 The bill provides that property listed on the state register 6 of historic places shall not be removed from the register 7 solely for the purpose of allowing the property to be acquired 8 by condemnation unless the condemnation is undertaken by 9 the department of transportation. The bill also provides 10 that property on the state register of historic places may 11 not be condemned unless a joint resolution authorizing the 12 condemnation is approved by a vote of at least two-thirds 13 of each house of the general assembly and signed by the 14 governor. This approval procedure, however, does not apply to 15 a condemnation undertaken by the department of transportation. 16 The bill specifies that Code chapter 6A, unless specifically 17 provided by law, is not to be construed to limit or otherwise 18 affect the application of Code chapters 478 and 479 to the 19 eminent domain authority of the utilities division of the 20 department of commerce. 21 The bill makes changes relating to eminent domain authority 22 in relation to development or creation of a lake. The bill 23 provides that when determining the number of acres justified as 24 reasonable and necessary for a surface drinking water source, 25 the registered professional engineers may, if appropriate, 26 employ standards or guidelines other than the guidelines of 27 the United States natural resource conservation service. The 28 bill requires the data and information used by the registered 29 professional engineers to include data and information relating 30 to population and commercial enterprise activity for the area 31 from the two most recent federal decennial censuses unless the 32 district court of the county in which the property is situated 33 has determined by a preponderance of the evidence that such 34 data would not accurately predict the population and commercial 35 -7- LSB 1757YH (5) 85 md/sc 7/ 9

H.F. 219 enterprise activity of the area in the future. 1 The bill also provides that a second review or analysis 2 of the drinking water capacity needs shall be performed upon 3 receipt by the acquiring agency of a petition signed by not 4 less than 25 percent of the affected property owners. The 5 registered professional engineer to perform the second review 6 or analysis shall be selected by a committee appointed by the 7 affected property owners and comprised of at least 50 percent 8 property owners affected by the proposed condemnation action. 9 The bill further provides that the acquiring agency shall 10 pay for the services of such an engineer. The bill provides 11 that if private property is to be condemned for development 12 or creation of a lake, the plans, analyses, applications, 13 including any application for funding, and other planning 14 activities of the acquiring agency shall not include or provide 15 for the use of the lake for recreational purposes. 16 The bill adds reasonable attorney fees and reasonable costs 17 that are attributable to certain condemnation proceedings 18 relating to the creation of a lake, up to $100,000, to the list 19 of expenses reimbursable by an acquiring agency to a property 20 owner. 21 The bill provides that when two years have elapsed since 22 property was condemned for the creation of a lake and the 23 property has not been used for or construction has not 24 progressed substantially for the purpose stated in the 25 application, and the acquiring agency has not taken action to 26 dispose of the property pursuant to Code section 6B.56, the 27 acquiring agency shall, within 60 days, adopt a resolution 28 offering the property for sale to the prior owner at a price 29 as provided in Code section 6B.56. If the acquiring agency 30 has not adopted a resolution within the 60-day time period, 31 the prior owner may petition the acquiring agency to offer the 32 property for sale to the prior owner at a price as provided in 33 Code section 6B.56. The bill requires the acquiring agency to 34 give written notice to the owner at the time damages are paid 35 -8- LSB 1757YH (5) 85 md/sc 8/ 9

H.F. 219 to the owner of the right to purchase the property under such 1 circumstances. 2 The bill adds a condition to the circumstances in which a 3 city may condemn land outside the city limits to provide that 4 condemnation may occur if viable alternatives do not exist 5 within the city and the acquisition of the land is necessary 6 for the purposes stated in current law. The bill also amends 7 urban renewal law relating to the circumstances in which a 8 municipality may condemn agricultural land within an economic 9 development urban renewal area to provide that condemnation may 10 occur if viable alternatives do not exist and the acquisition 11 of the land is necessary for the purposes stated in current 12 law. 13 The bill provides that the revenue raised by a local sales 14 and services tax imposed under Code chapter 423B by a county 15 shall not be expended for any purpose related to a project 16 that includes the condemnation of private property for the 17 creation of a lake if the local sales and services tax has not 18 been approved at election in the area where the property to be 19 condemned is located. 20 The bill provides that the department of natural resources 21 and the natural resource commission shall not exercise eminent 22 domain authority to acquire real property for purposes of 23 carrying out a duty related to development or maintenance of 24 the recreation resources of the state, including planning, 25 acquisition, and development of recreational projects, and 26 areas and facilities related to such projects. The bill 27 retains the department’s authority to acquire property through 28 condemnation for highway purposes. 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 -9- LSB 1757YH (5) 85 md/sc 9/ 9