House File 2411 - Introduced HOUSE FILE 2411 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO HF 289) A BILL FOR An Act relating to state and local government powers and 1 limitations, including authorizing loans from city reserve 2 funds and modifying eminent domain authority and procedures 3 and including effective date and retroactive and other 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1761HV (2) 85 aw/sc

H.F. 2411 DIVISION I 1 LOANS FROM CITY RESERVE FUNDS 2 Section 1. Section 384.4, subsection 1, Code 2014, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . f. Payments of principal and interest on 5 loans entered into pursuant to section 384.24B and authorized 6 for repayment by the council from the debt service fund. 7 Sec. 2. NEW SECTION . 384.24B General obligation loans 8 funded by the city. 9 1. A city may authorize a loan, as defined in this section, 10 to borrow money for any general corporate purpose or essential 11 corporate purpose in accordance with and subject to the 12 provisions of this section. 13 2. a. For purposes of this section, “loan” means the 14 sum of the transfers from the surplus of one or more reserve 15 accounts or funds of the city which transfers are authorized 16 for the purpose specified in the loan authorization document. 17 A transfer from a reserve account or fund for the purposes of 18 this section shall not cause the balance of reserves in such 19 account or fund at the close of the fiscal year following the 20 fiscal year in which the transfer is made to fall below any 21 minimum balance prescribed by law for such account or fund. 22 For the purposes of this section, “reserve account or fund” 23 means moneys held by a city that are not operating funds, as 24 defined in section 12B.10A, and which is authorized by law to 25 receive interest pursuant to section 12C.7. 26 b. A loan to finance a general obligation bond project 27 under this section shall not result in a user fee, rate, or 28 property tax increase to support the annual operations of the 29 account or fund from which the loan is made, as a result of 30 the unavailability of the surplus funds. For the purposes of 31 this section, “surplus” means the cash balance available in 32 any account or fund from which a loan will be made under this 33 section which exceeds the amount of expenses or disbursements 34 made from the account or fund in the previous three months, 35 -1- LSB 1761HV (2) 85 aw/sc 1/ 17

H.F. 2411 plus the amount of transfers, payments, or disbursements 1 required in the following three months. 2 3. a. A loan entered into by a city pursuant to this 3 section may contain provisions similar to those found in loan 4 agreements between private parties, including but not limited 5 to the issuance of notes to evidence its obligations. The 6 terms of each loan shall require repayment of the loan within 7 ninety days to the extent necessary to prevent a user fee, 8 rate, or property tax increase which raises the user fees, 9 rates, or property taxes payable into the account or fund from 10 which the loan is made above the level in effect at the time a 11 loan under this section is authorized. 12 b. A loan authorized pursuant to this section shall 13 constitute an indebtedness within the meaning of any 14 constitutional debt limitation and shall be reported by the 15 city to the state treasurer in the same manner as required 16 for bonding activities pursuant to section 12.1. The full 17 or partial refunding of any loan under this section shall 18 be authorized as an essential corporate purpose pursuant to 19 section 384.24, subsection 3, paragraph “f” . 20 4. A loan made pursuant to this section is payable from the 21 debt service fund of the city. The governing body shall follow 22 the same authorization procedures required for the issuance 23 of general obligation bonds issued for the same purpose to 24 authorize a loan made payable from the debt service fund. 25 Upon approval of a loan, the loan shall be accounted for in 26 accordance with section 384.20. 27 5. A loan made pursuant to this section shall include 28 provisions establishing an interest rate on the loan that shall 29 be set at a rate that is between the interest rate established 30 pursuant to section 12C.6, subsection 2, paragraph “a” , and the 31 interest rate established pursuant to section 74A.6, subsection 32 2. 33 6. Repayments of principal and interest shall be paid to 34 the reserve fund or account from which all or a portion of the 35 -2- LSB 1761HV (2) 85 aw/sc 2/ 17

H.F. 2411 funds were advanced for the loan in the proportion that the 1 amount of the advance from the fund or account bears to the 2 entire amount of the loan. 3 7. a. The limitation in section 346.24 does not apply to a 4 transfer made pursuant to this section or to a loan authorized 5 pursuant to this section. 6 b. A city shall not become indebted under this section to an 7 amount exceeding six million dollars. 8 8. A loan made pursuant to this section shall not include 9 any transfers or obligations from the reserve fund or account 10 of a city utility or of a combined city utility. 11 9. The powers granted under this section shall not be 12 construed as a limitation of the existing powers of a city. 13 Sec. 3. Section 384.25, Code 2014, is amended to read as 14 follows: 15 384.25 General obligation bonds or loans for essential 16 purposes. 17 1. A city which proposes to carry out any essential 18 corporate purpose within or without its corporate limits, and 19 to contract indebtedness and issue general obligation bonds or 20 authorize a loan described in section 384.24B, to provide funds 21 to pay all or any part of the cost of a project must do so in 22 accordance with the provisions of this division . 23 2. Before the council may institute proceedings for the 24 issuance of bonds or authorization of a loan for an essential 25 corporate purpose, a notice of the proposed action, including 26 a statement of the amount and purposes of the bonds or loan , 27 and the time and place of the meeting at which the council 28 proposes to take action for the issuance of the bonds or 29 authorization of the loan , must be published as provided in 30 section 362.3 . At the meeting, the council shall receive oral 31 or written objections from any resident or property owner 32 of the city. After all objections have been received and 33 considered, the council may, at that meeting or any adjournment 34 thereof, take additional action for the issuance of the bonds 35 -3- LSB 1761HV (2) 85 aw/sc 3/ 17

H.F. 2411 or authorization of the loan or abandon the proposal to issue 1 the bonds or authorize the loan . Any resident or property 2 owner of the city may appeal the decision of the council to 3 take additional action to the district court of the county in 4 which any part of the city is located, within fifteen days 5 after the additional action is taken, but the additional action 6 of the council is final and conclusive unless the court finds 7 that the council exceeded its authority. The provisions of 8 this subsection with respect to notice, hearing, and appeal, 9 are in lieu of the provisions contained in chapter 73A , or any 10 other law. 11 3. a. Notwithstanding subsection 2 , a council may institute 12 proceedings for the issuance of bonds or the authorization of a 13 loan for an essential corporate purpose specified in section 14 384.24, subsection 3 , paragraph “w” or “x” , in an amount equal 15 to or greater than three million dollars by causing a notice 16 of the proposal to issue the bonds or authorize the loan , 17 including a statement of the amount and purpose of the bonds 18 or loan , together with the maximum rate of interest which the 19 bonds are to bear or which will be charged to the principal 20 balance of the loan , and the right to petition for an election, 21 to be published at least once in a newspaper of general 22 circulation within the city at least ten days prior to the 23 meeting at which it is proposed to take action for the issuance 24 of the bonds or the authorization of the loan . 25 b. If at any time before the date fixed for taking action 26 for the issuance of the bonds or the authorization of the 27 loan , a petition is filed with the clerk of the city signed 28 by eligible electors of the city equal in number to twenty 29 percent of the persons in the city who voted for the office of 30 president of the United States at the last preceding general 31 election that had such office on the ballot, asking that the 32 question of issuing the bonds or authorizing the loan be 33 submitted to the registered voters of the city, the council 34 shall either by resolution declare the proposal to issue the 35 -4- LSB 1761HV (2) 85 aw/sc 4/ 17

H.F. 2411 bonds or authorize the loan to have been abandoned or shall 1 direct the county commissioner of elections to call a special 2 election upon the question of issuing the bonds or authorizing 3 the loan . Notice of the election and its conduct shall be in 4 the manner provided in section 384.26 . 5 c. If a petition is not filed, or if a petition is filed and 6 the proposition of issuing the bonds or authorizing the loan 7 is approved at an election, the council may proceed with the 8 authorization and issuance of the bonds or authorization of the 9 loan . 10 Sec. 4. Section 384.26, subsections 1, 2, 4, and 5, Code 11 2014, are amended to read as follows: 12 1. A city which proposes to carry out any general corporate 13 purpose within or without its corporate limits, and to contract 14 indebtedness and issue general obligation bonds or authorize a 15 loan described in section 384.24B, to provide funds to pay all 16 or any part of the costs of a project, must do so in accordance 17 with the provisions of this division . 18 2. Before the council may institute proceedings for the 19 issuance of bonds or authorization of a loan for a general 20 corporate purpose, it shall call a special city election to 21 vote upon the question of issuing the bonds or authorizing the 22 loan . At the election the proposition must be submitted in one 23 of the following form forms, as applicable : 24 Shall the ............ (insert the name of the city) issue 25 its bonds in an amount not exceeding the amount of $ .... for 26 the purpose of .......... ? 27 Shall the .......... (insert the name of the city) authorize 28 a loan from its surplus funds in an amount not exceeding the 29 amount of $ .... for the purpose of ..........? 30 4. The proposition of issuing general corporate purpose 31 bonds or authorizing a loan for a general corporate purpose 32 is not carried or adopted unless the vote in favor of the 33 proposition is equal to at least sixty percent of the total 34 vote cast for and against the proposition at the election. 35 -5- LSB 1761HV (2) 85 aw/sc 5/ 17

H.F. 2411 If the proposition of issuing the general corporate purpose 1 bonds or authorizing a loan for a general corporate purpose is 2 approved by the voters, the city may proceed with the issuance 3 of the bonds or authorization of the loan . 4 5. a. Notwithstanding the provisions of subsection 2 , 5 a council may, in lieu of calling an election, institute 6 proceedings for the issuance of bonds or authorization of a 7 loan for a general corporate purpose by causing a notice of the 8 proposal to issue the bonds or authorize the loan , including 9 a statement of the amount and purpose of the bonds or loan , 10 together with the maximum rate of interest which the bonds are 11 to bear or which the loan is to bear , and the right to petition 12 for an election, to be published at least once in a newspaper 13 of general circulation within the city at least ten days prior 14 to the meeting at which it is proposed to take action for the 15 issuance of the bonds or authorization of the loan subject to 16 the following limitations: 17 (1) In cities having a population of five thousand or less, 18 in an amount of not more than four hundred thousand dollars. 19 (2) In cities having a population of more than five thousand 20 and not more than seventy-five thousand, in an amount of not 21 more than seven hundred thousand dollars. 22 (3) In cities having a population in excess of seventy-five 23 thousand, in an amount of not more than one million dollars. 24 b. If at any time before the date fixed for taking action 25 for the issuance of the bonds or the authorization of the 26 loan , a petition is filed with the clerk of the city in the 27 manner provided by section 362.4 , asking that the question 28 of issuing the bonds or authorizing the loan be submitted to 29 the registered voters of the city, the council shall either by 30 resolution declare the proposal to issue the bonds or authorize 31 the loan to have been abandoned or shall direct the county 32 commissioner of elections to call a special election upon the 33 question of issuing the bonds or authorizing the loan . Notice 34 of the election and its conduct shall be in the manner provided 35 -6- LSB 1761HV (2) 85 aw/sc 6/ 17

H.F. 2411 in the preceding subsections of this section . 1 c. If no petition is filed, or if a petition is filed and 2 the proposition of issuing the bonds or authorizing the loan 3 is approved at an election, the council may proceed with the 4 authorization and issuance of the bonds or the authorization 5 of the loan . 6 Sec. 5. Section 384.33, Code 2014, is amended to read as 7 follows: 8 384.33 Action. 9 No action may be brought which questions the legality of 10 general obligation bonds , notes, or loans under this chapter or 11 the power of the city to issue the bonds , notes or loans or the 12 effectiveness of any proceedings relating to the authorization 13 and issuance of the bonds , notes, or loans from and after sixty 14 days from the time the bonds , notes or loans are ordered issued 15 by the city. 16 DIVISION II 17 EMINENT DOMAIN 18 Sec. 6. NEW SECTION . 6A.15 Property on state historic 19 registry. 20 1. Property listed on the state register of historic places 21 maintained by the historical division of the department of 22 cultural affairs shall not be removed from the register solely 23 for the purpose of allowing acquisition of the property by 24 condemnation, unless such condemnation is undertaken by the 25 department of transportation. 26 2. 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 condemned by the state or a 29 political subdivision unless a joint resolution authorizing 30 commencement of the condemnation proceedings is approved by a 31 vote of at least two-thirds of the members of both chambers of 32 the general assembly and signed by the governor. The approval 33 requirements of this subsection shall not apply to condemnation 34 undertaken by the department of transportation. 35 -7- LSB 1761HV (2) 85 aw/sc 7/ 17

H.F. 2411 Sec. 7. Section 6A.19, Code 2014, is amended to read as 1 follows: 2 6A.19 Interpretative clause. 3 A grant in this chapter of right to take private property 4 for a public use shall not be construed as limiting a like 5 grant elsewhere in the Code for another and different use. 6 Unless specifically provided by law, this chapter shall not 7 be construed to limit or otherwise affect the application of 8 chapters 478 and 479 to the eminent domain authority of the 9 utilities division of the department of commerce. 10 Sec. 8. Section 6A.22, subsection 2, paragraph c, 11 subparagraph (1), Code 2014, is amended to read as follows: 12 (1) (a) If private property is to be condemned for 13 development or creation of a lake, only that number of acres 14 justified as reasonable and necessary for a surface drinking 15 water source, and not otherwise acquired, may be condemned. 16 In addition, the acquiring agency shall conduct a review of 17 prudent and feasible alternatives to provision of a drinking 18 water source prior to making a determination that such 19 lake development or creation is reasonable and necessary. 20 Development or creation of a lake as a surface drinking water 21 source includes all of the following: 22 (i) Construction of the dam, including sites for suitable 23 borrow material and the auxiliary spillway. 24 (ii) The water supply pool. 25 (iii) The sediment pool. 26 (iv) The flood control pool. 27 (v) The floodwater retarding pool. 28 (vi) The surrounding area upstream of the dam no higher in 29 elevation than the top of the dam’s elevation. 30 (vii) The appropriate setback distance required by state or 31 federal laws and regulations to protect drinking water supply. 32 (b) For purposes of this subparagraph (1), “number of acres 33 justified as reasonable and necessary for a surface drinking 34 water source” means according to guidelines of the United 35 -8- LSB 1761HV (2) 85 aw/sc 8/ 17

H.F. 2411 States natural resource conservation service and according to 1 analyses of surface drinking water capacity needs conducted by 2 one or more registered professional engineers. The registered 3 professional engineers may, if appropriate, employ standards 4 or guidelines other than the guidelines of the United States 5 natural resource conservation service when determining the 6 number of acres justified as reasonable and necessary for 7 a surface drinking water source. The data and information 8 used by the registered professional engineers shall include 9 data and information relating to population and commercial 10 enterprise activity for the area from the two most recent 11 federal decennial censuses unless the district court of the 12 county in which the property is situated has determined by 13 a preponderance of the evidence that such data would not 14 accurately predict the population and commercial enterprise 15 activity of the area in the future. 16 (c) A second review or analysis of the drinking water 17 capacity needs shall be performed upon receipt by the acquiring 18 agency of a petition signed by not less than twenty-five 19 percent of the affected property owners. The registered 20 professional engineer to perform the second review or analysis 21 shall be selected by a committee appointed by the affected 22 property owners and whose membership is comprised of at 23 least fifty percent property owners affected by the proposed 24 condemnation action. The acquiring agency shall be responsible 25 for paying the fees and expenses of such an engineer. 26 (d) If private property is to be condemned for development 27 or creation of a lake, the plans, analyses, applications, 28 including any application for funding, and other planning 29 activities of the acquiring agency shall not include or provide 30 for the use of the lake for recreational purposes. 31 Sec. 9. Section 6B.54, subsection 10, paragraph a, Code 32 2014, is amended by adding the following new subparagraph: 33 NEW SUBPARAGRAPH . (3) Reasonable attorney fees and 34 reasonable costs not to exceed one hundred thousand dollars, 35 -9- LSB 1761HV (2) 85 aw/sc 9/ 17

H.F. 2411 attributable to a determination that the creation of a lake 1 through condemnation includes a future recreational use or that 2 a violation of section 6A.22, subsection 2, paragraph “c” , 3 subparagraph (1), subparagraph division (d), has occurred, if 4 such fees and costs are not otherwise provided under section 5 6B.33. 6 Sec. 10. NEW SECTION . 6B.56B Disposition of condemned 7 property —— two-year time period. 8 1. When two years have elapsed since property was condemned 9 for the creation of a lake according to the requirements of 10 section 6A.22, subsection 2, paragraph “c” , subparagraph (1), 11 and the property has not been used for or construction has 12 not progressed substantially from the date the property was 13 condemned for the purpose stated in the application filed 14 pursuant to section 6B.3, and the acquiring agency has not 15 taken action to dispose of the property pursuant to section 16 6B.56, the acquiring agency shall, within sixty days, adopt a 17 resolution offering the property for sale to the prior owner 18 at a price as provided in section 6B.56. If the resolution 19 adopted approves an offer of sale to the prior owner, the offer 20 shall be made in writing and mailed by certified mail to the 21 prior owner. The prior owner has one hundred eighty days after 22 the offer is mailed to purchase the property from the acquiring 23 agency. 24 2. If the acquiring agency has not adopted a resolution 25 described in subsection 1 within the sixty-day time period, the 26 prior owner may, in writing, petition the acquiring agency to 27 offer the property for sale to the prior owner at a price as 28 provided in section 6B.56. Within sixty days after receipt of 29 such a petition, the acquiring agency shall adopt a resolution 30 described in subsection 1. If the acquiring agency does not 31 adopt such a resolution within sixty days after receipt of the 32 petition, the acquiring agency is deemed to have offered the 33 property for sale to the prior owner. 34 3. The acquiring agency shall give written notice to the 35 -10- LSB 1761HV (2) 85 aw/sc 10/ 17

H.F. 2411 owner of the right to purchase the property under this section 1 at the time damages are paid to the owner. 2 Sec. 11. Section 403.7, subsection 1, unnumbered paragraph 3 1, Code 2014, is amended to read as follows: 4 A municipality shall have the right to acquire by 5 condemnation any interest in real property, including a fee 6 simple title thereto, which it may deem necessary for or in 7 connection with an urban renewal project under this chapter , 8 subject to the limitations on eminent domain authority 9 in chapter chapters 6A and 6B . However, a municipality 10 shall not condemn agricultural land included within an 11 economic development area for any use unless the owner of 12 the agricultural land consents to condemnation or unless the 13 municipality determines that the land is necessary or useful 14 for any of the following: 15 Sec. 12. NEW SECTION . 423B.11 Use of revenues —— 16 limitation. 17 The revenue raised by a local sales and services tax imposed 18 under this chapter by a county shall not be expended for any 19 purpose related to a project that includes the condemnation of 20 private property for the creation of a lake according to the 21 requirements of section 6A.22, subsection 2, paragraph “c” , 22 subparagraph (1), if the local sales and services tax has not 23 been approved at election in the area where the property to be 24 condemned is located. 25 Sec. 13. Section 455A.5, Code 2014, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 7. The authority granted to the commission 28 to acquire real property for purposes of carrying out a 29 duty related to development or maintenance of the recreation 30 resources of the state, including planning, acquisition, and 31 development of recreational projects, and areas and facilities 32 related to such projects, shall not include the authority to 33 acquire real property by eminent domain. 34 Sec. 14. Section 456A.24, subsection 2, unnumbered 35 -11- LSB 1761HV (2) 85 aw/sc 11/ 17

H.F. 2411 paragraph 1, Code 2014, is amended to read as follows: 1 Acquire by purchase, condemnation, lease, agreement, 2 gift, and devise lands or waters suitable for the purposes 3 hereinafter enumerated, and rights-of-way thereto, and to 4 maintain the same for the following purposes , to wit : 5 Sec. 15. Section 456A.24, Code 2014, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 15. The authority granted the department 8 to acquire real property for any statutory purpose relating to 9 the development or maintenance of the recreation resources of 10 the state, including planning, acquisition, and development 11 of recreational projects, and areas and facilities related to 12 such projects, shall not include the authority to acquire real 13 property by eminent domain. 14 Sec. 16. Section 461A.7, Code 2014, is amended to read as 15 follows: 16 461A.7 Eminent domain Purchase of lands —— public parks . 17 The commission may purchase or condemn lands from willing 18 sellers for public parks. No A contract for the purchase of 19 such public parks shall not be made to an amount in excess of 20 funds appropriated therefor by the general assembly. 21 Sec. 17. Section 461A.10, Code 2014, is amended to read as 22 follows: 23 461A.10 Title to lands. 24 The title to all lands purchased, condemned, or donated , 25 hereunder, for park or highway purposes and the title to all 26 lands purchased, condemned, or donated hereunder for highway 27 purposes , shall be taken in the name of the state and if 28 thereafter it shall be deemed advisable to sell any portion of 29 the land so purchased or condemned, the proceeds of such sale 30 shall be placed to the credit of the said public state parks 31 fund to be used for such park purposes. 32 Sec. 18. Section 463C.8, subsection 1, paragraph k, Code 33 2014, is amended to read as follows: 34 k. The power to acquire, own, hold, administer, and dispose 35 -12- LSB 1761HV (2) 85 aw/sc 12/ 17

H.F. 2411 of property , except that such power is not a grant of authority 1 to acquire property by eminent domain . 2 Sec. 19. REPEAL. Sections 461A.9 and 461A.75, Code 2014, 3 are repealed. 4 Sec. 20. SEVERABILITY. If any provision of this division of 5 this Act is held invalid, the invalidity shall not affect other 6 provisions or applications of this division of this Act which 7 can be given effect without the invalid provision, and to this 8 end the provisions of this division of this Act are severable 9 as provided in section 4.12. 10 Sec. 21. EFFECTIVE UPON ENACTMENT. This division of this 11 Act, being deemed of immediate importance, takes effect upon 12 enactment. 13 Sec. 22. APPLICABILITY. Except as otherwise provided in 14 this division of this Act, this division of this Act applies to 15 projects or condemnation proceedings pending or commenced on or 16 after the effective date of this division of this Act. 17 Sec. 23. RETROACTIVE APPLICABILITY. Notwithstanding any 18 provision of law to the contrary, the following provision or 19 provisions of this division of this Act apply retroactively to 20 projects or condemnation proceedings pending or commenced on or 21 after February 15, 2013: 22 1. The section of this division of this Act amending section 23 6A.22. 24 2. The section of this division of this Act enacting section 25 6B.56B. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to state and local government powers and 30 limitations. 31 DIVISION I —— LOANS FROM CITY RESERVE FUNDS. The bill enacts 32 new Code section 384.24B to allow a city to borrow surplus 33 money from its reserve accounts or funds for any general 34 corporate purpose or essential corporate purpose. The bill 35 -13- LSB 1761HV (2) 85 aw/sc 13/ 17

H.F. 2411 requires that a city certify taxes to be levied for deposit in 1 the debt service fund in the amount necessary to pay principal 2 and interest on loans authorized under the bill. The bill 3 defines “loan”, “surplus”, and “reserve account or fund”. 4 The bill requires that such loans not cause the balances 5 of such reserve accounts or funds to fall below any minimum 6 balance prescribed by law and requires that a city shall not 7 become indebted under such loans to an amount in excess of $6 8 million. The bill requires that loans from reserve funds be 9 reported to the state treasurer in the same manner as required 10 for bonds issued by a city. The bill requires that such loans 11 not result in a user fee, rate, or property tax increase as 12 a result of unavailability of surplus funds. The terms of 13 each loan shall require repayment of the loan within 90 days 14 to the extent necessary to prevent a user fee rate or property 15 tax increase. Such a loan shall be payable from the city debt 16 service fund and shall constitute an indebtedness within the 17 meaning of any statutory debt limitation. 18 The full or partial repayment of a loan entered into under 19 the bill shall constitute an essential corporate purpose 20 pursuant to Code section 384.24, subsection 3, paragraph “f”. 21 The bill provides that upon approval of such a loan that the 22 loan shall be accounted for as a separate account pursuant 23 to current Code section 384.20. The bill further provides 24 that interest rates on such a loan be set between the interest 25 rate established for the deposit of public funds, established 26 in current Code section 12C.6 and the maximum interest rate 27 established for public obligations and assessments under 28 current Code section 74A.6, subsection 2. The bill provides 29 that such a loan not include any transfers or obligations from 30 a reserve fund or account of a city utility or combined city 31 utility. 32 The bill requires that a city council follow substantially 33 the same procedures for the issuance of general obligation 34 bonds for essential corporate purposes, pursuant to Code 35 -14- LSB 1761HV (2) 85 aw/sc 14/ 17

H.F. 2411 section 384.25, or for general corporate purposes, pursuant to 1 Code section 384.26 when making a loan from reserve funds. 2 The bill further provides that no action may be brought 3 against a city regarding the legality, power to issue, or power 4 to authorize notes or loans under Code chapter 384 at any time 5 after 60 days following issuance. 6 DIVISION II —— EMINENT DOMAIN. The bill provides that 7 property listed on the state register of historic places shall 8 not be removed from the register solely for the purpose of 9 allowing the property to be acquired by condemnation unless the 10 condemnation is undertaken by the department of transportation. 11 The bill also provides that property on the state register of 12 historic places may not be condemned unless a joint resolution 13 authorizing the condemnation is approved by a vote of at least 14 two-thirds of each house of the general assembly and signed 15 by the governor. This approval procedure, however, does 16 not apply to a condemnation undertaken by the department of 17 transportation. 18 The bill specifies that Code chapter 6A, unless specifically 19 provided by law, is not to be construed to limit or otherwise 20 affect the application of Code chapters 478 and 479 to the 21 eminent domain authority of the utilities division of the 22 department of commerce. 23 The bill makes changes relating to eminent domain authority 24 in relation to development or creation of a lake. The bill 25 provides that when determining the number of acres justified as 26 reasonable and necessary for a surface drinking water source, 27 the registered professional engineers may, if appropriate, 28 employ standards or guidelines other than the guidelines of 29 the United States natural resource conservation service. The 30 bill requires the data and information used by the registered 31 professional engineers to include data and information relating 32 to population and commercial enterprise activity for the area 33 from the two most recent federal decennial censuses unless the 34 district court of the county in which the property is situated 35 -15- LSB 1761HV (2) 85 aw/sc 15/ 17

H.F. 2411 has determined by a preponderance of the evidence that such 1 data would not accurately predict the population and commercial 2 enterprise activity of the area in the future. 3 The bill also provides that a second review or analysis 4 of the drinking water capacity needs shall be performed upon 5 receipt by the acquiring agency of a petition signed by not 6 less than 25 percent of the affected property owners. The 7 registered professional engineer to perform the second review 8 or analysis shall be selected by a committee appointed by the 9 affected property owners and comprised of at least 50 percent 10 property owners affected by the proposed condemnation action. 11 The division further provides that the acquiring agency shall 12 pay for the services of such an engineer. 13 The bill provides that if private property is to be condemned 14 for development or creation of a lake, the plans, analyses, 15 applications, including any application for funding, and other 16 planning activities of the acquiring agency shall not include 17 or provide for the use of the lake for recreational purposes. 18 The bill adds reasonable attorney fees and reasonable costs 19 that are attributable to certain condemnation proceedings 20 relating to the creation of a lake, up to $100,000, to the list 21 of expenses reimbursable by an acquiring agency to a property 22 owner. 23 The bill provides that when two years have elapsed since 24 property was condemned for the creation of a lake and the 25 property has not been used for or construction has not 26 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 -16- LSB 1761HV (2) 85 aw/sc 16/ 17

H.F. 2411 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 The bill also amends urban renewal law relating to the 5 circumstances in which a municipality may condemn agricultural 6 land within an economic development urban renewal area to 7 provide that condemnation may occur if viable alternatives do 8 not exist and the acquisition of the land is necessary for the 9 purposes stated in current law. 10 The bill provides that the revenue raised by a local sales 11 and services tax imposed under Code chapter 423B by a county 12 shall not be expended for any purpose related to a project 13 that includes the condemnation of private property for the 14 creation of a lake if the local sales and services tax has not 15 been approved at election in the area where the property to be 16 condemned is located. 17 The bill provides that the department of natural resources 18 and the natural resource commission shall not exercise eminent 19 domain authority to acquire real property for purposes of 20 carrying out a duty related to 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. The bill 24 retains the department’s authority to acquire property through 25 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 II of the bill provides that the provisions of 31 division II 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 -17- LSB 1761HV (2) 85 aw/sc 17/ 17