H.F. 619 DIVISION I 1 CONDEMNATION FOR CREATION OF A LAKE —— NUMBER OF ACRES 2 Section 1. Section 6A.22, subsection 2, paragraph c, 3 subparagraph (1), subparagraph division (b), Code 2015, is 4 amended to read as follows: 5 (b) (i) For purposes of this subparagraph (1), “number of 6 acres justified as necessary for a surface drinking water source” 7 means according to guidelines of the United States natural 8 resource conservation service and according to analyses of 9 surface drinking water capacity needs conducted by one or more 10 registered professional engineers. However, the determination 11 of surface drinking water capacity needs shall be limited to 12 the needs of the population of the county where the lake is to 13 be developed or created, according to the most recent federal 14 decennial census. 15 (ii) For condemnation proceedings for which the application 16 for condemnation pursuant to section 6B.3 was filed on or 17 after July 1, 2012, and on or before January 1, 2015, “number 18 of acres justified as necessary for a surface drinking water 19 source” , as determined under subparagraph subdivision (i) 20 shall not exceed the number of acres that would be necessary 21 to provide the amount of drinking water consumed in the most 22 recently completed calendar year prior to the date on which the 23 application was filed in the county where the lake is to be 24 developed or created. 25 Sec. 2. EFFECTIVE UPON ENACTMENT. This division of this 26 Act, being deemed of immediate importance, takes effect upon 27 enactment. 28 DIVISION II 29 CONDEMNATION FOR CREATION OF A LAKE —— EXISTING SOURCES 30 Sec. 3. Section 6A.22, subsection 2, paragraph c, 31 subparagraph (1), subparagraph division (a), unnumbered 32 paragraph 1, Code 2015, is amended to read as follows: 33 If private property is to be condemned for development 34 or creation of a lake, only that number of acres justified 35 -1- LSB 2616HV (2) 86 md/sc 1/ 5

H.F. 619 as necessary for a surface drinking water source, and not 1 otherwise acquired, may be condemned. In addition However, 2 an acquiring agency shall not have the authority to condemn 3 private property for creation of a lake as a surface drinking 4 water source if an existing drinking water source may be 5 expanded or supplemented for such purpose. If an existing 6 drinking water source is incapable of being expanded or 7 supplemented as a surface drinking water source , the acquiring 8 agency shall conduct a review of prudent and feasible 9 alternatives to provision of a drinking water source prior to 10 making a determination that such lake development or creation 11 is reasonable and necessary. Development or creation of a 12 lake as a surface drinking water source includes all of the 13 following: 14 Sec. 4. EFFECTIVE UPON ENACTMENT. This division of this 15 Act, being deemed of immediate importance, takes effect upon 16 enactment. 17 Sec. 5. APPLICABILITY. This division of this Act applies to 18 projects or condemnation proceedings pending or commenced on or 19 after the effective date of this division of this Act. 20 DIVISION III 21 DISPOSITION OF CONDEMNED PROPERTY 22 Sec. 6. Section 6B.56A, subsection 4, Code 2015, is amended 23 to read as follows: 24 4. This section does not apply to property acquired for 25 street and highway projects undertaken by the state, a county, 26 or a city or to property that is subject to the disposition of 27 property requirements under section 6B.56B . 28 Sec. 7. NEW SECTION . 6B.56B Disposition of condemned 29 property —— lake creation. 30 1. When two years have elapsed since property was condemned 31 for the creation of a lake according to the requirements of 32 section 6A.22, subsection 2, paragraph “c” , subparagraph (1), 33 and the property has not been used for the purpose stated 34 in the application filed pursuant to section 6B.3, and the 35 -2- LSB 2616HV (2) 86 md/sc 2/ 5

H.F. 619 acquiring agency has not taken action to dispose of the 1 property pursuant to section 6B.56, the acquiring agency shall, 2 within sixty days, adopt a resolution offering the property 3 for sale to the prior owner at a price as provided in section 4 6B.56. If the resolution adopted approves an offer of sale to 5 the prior owner, the offer shall be made in writing and mailed 6 by certified mail to the prior owner. The prior owner has one 7 hundred eighty days after the offer is mailed to purchase the 8 property from the acquiring agency. 9 2. If the acquiring agency has not adopted a resolution 10 described in subsection 1 within the sixty-day time period, the 11 prior owner may, in writing, petition the acquiring agency to 12 offer the property for sale to the prior owner at a price as 13 provided in section 6B.56. Within sixty days after receipt of 14 such a petition, the acquiring agency shall adopt a resolution 15 described in subsection 1. If the acquiring agency does not 16 adopt such a resolution within sixty days after receipt of the 17 petition, the acquiring agency is deemed to have offered the 18 property for sale to the prior owner. 19 3. The acquiring agency shall give written notice to the 20 owner of the right to purchase the property under this section 21 at the time damages are paid to the owner. 22 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of this 23 Act, being deemed of immediate importance, takes effect upon 24 enactment. 25 Sec. 9. APPLICABILITY. This division of this Act applies to 26 projects or condemnation proceedings pending or commenced on or 27 after the effective date of this division of this Act. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the use of eminent domain authority and 32 modifying and establishing related procedures. 33 Division I of the bill amends provisions of Code section 34 6A.22, relating to the use of condemnation for creation of 35 -3- LSB 2616HV (2) 86 md/sc 3/ 5

H.F. 619 a lake for drinking water needs. The bill provides that 1 for purposes of determining the number of acres justified 2 as necessary for a surface drinking water source, the 3 determination of surface drinking water capacity needs shall 4 be limited to the needs of the population of the county where 5 the lake is to be developed or created, according to the most 6 recent federal decennial census. The bill also provides 7 that for condemnation proceedings for which the application 8 for condemnation was filed on or after July 1, 2012, and on 9 or before January 1, 2015, the number of acres justified 10 as necessary for a surface drinking water source shall not 11 exceed the number of acres that would be necessary to provide 12 the amount of drinking water consumed in the most recently 13 completed calendar year prior to filing the application, in the 14 county where the lake is to be developed or created. 15 Division I of the bill takes effect upon enactment. 16 Current Code section 6A.22(2)(c)(1) authorizes the use of 17 eminent domain for development or creation of a lake and limits 18 that authority based on the need for surface drinking water. 19 Division II of the bill prohibits an acquiring agency from 20 condemning private property for creation of a lake as a surface 21 drinking water source if an existing drinking water source may 22 be expanded or supplemented for such purpose. 23 Division II of the bill takes effect upon enactment and 24 applies to projects or condemnation proceedings pending or 25 commenced on or after the effective date of the division. 26 Division III of the bill provides that when two years have 27 elapsed since property was condemned for the creation of a lake 28 and the property has not been used for the purpose stated in 29 the application, and the acquiring agency has not taken action 30 to dispose of the property pursuant to Code section 6B.56, the 31 acquiring agency shall, within 60 days, adopt a resolution 32 offering the property for sale to the prior owner at a price 33 as provided in Code section 6B.56. If the acquiring agency 34 has not adopted a resolution within the 60-day time period, 35 -4- LSB 2616HV (2) 86 md/sc 4/ 5

H.F. 619 the prior owner may petition the acquiring agency to offer the 1 property for sale to the prior owner at a price as provided in 2 Code section 6B.56. The bill requires the acquiring agency to 3 give written notice to the owner at the time damages are paid 4 to the owner of the right to purchase the property under such 5 circumstances. 6 Division III also specifies that current Code section 7 6B.56A, relating to the disposition of condemned property, does 8 not apply to property condemned under Code section 6A.22 for 9 the creation of a lake. 10 Division III of the bill takes effect upon enactment and 11 applies to projects or condemnation proceedings pending or 12 commenced on or after the effective date of division III of the 13 bill. 14 -5- LSB 2616HV (2) 86 md/sc 5/ 5