HF 619 (LSB 2616HV (2) 86)

HOUSE FILE 619

BY  COMMITTEE ON GOVERNMENT OVERSIGHT

(SUCCESSOR TO HSB 223)

A BILL FOR

An Act relating to the use of eminent domain authority, modifying and establishing related procedures, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
CONDEMNATION FOR CREATION OF A LAKE —— NUMBER OF ACRES
    Section 1.  Section 6A.22, subsection 2, paragraph c, subparagraph (1), subparagraph division (b), Code 2015, is amended to read as follows:
   (b)  (i)  For purposes of this subparagraph (1), “number of acres justified as necessary for a surface drinking water source” means according to guidelines of the United States natural resource conservation service and according to analyses of surface drinking water capacity needs conducted by one or more registered professional engineers.  However, the determination of surface drinking water capacity needs shall be limited to the needs of the population of the county where the lake is to be developed or created, according to the most recent federal decennial census.
   (ii)  For condemnation proceedings for which the application for condemnation pursuant to section 6B.3 was filed on or after July 1, 2012, and on or before January 1, 2015, “number of acres justified as necessary for a surface drinking water source”, as determined under subparagraph subdivision (i) shall not exceed the number of acres that would be necessary to provide the amount of drinking water consumed in the most recently completed calendar year prior to the date on which the application was filed in the county where the lake is to be developed or created.
    Sec. 2.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.

DIVISION II
CONDEMNATION FOR CREATION OF A LAKE —— EXISTING SOURCES
    Sec. 3.  Section 6A.22, subsection 2, paragraph c, subparagraph (1), subparagraph division (a), unnumbered paragraph 1, Code 2015, is amended to read as follows:

   If private property is to be condemned for development or creation of a lake, only that number of acres justified as necessary for a surface drinking water source, and not otherwise acquired, may be condemned. In addition However, an acquiring agency shall not have the authority to condemn private property for creation of a lake as a surface drinking water source if an existing drinking water source may be expanded or supplemented for such purpose. If an existing drinking water source is incapable of being expanded or supplemented as a surface drinking water source, the acquiring agency shall conduct a review of prudent and feasible alternatives to provision of a drinking water source prior to making a determination that such lake development or creation is reasonable and necessary. Development or creation of a lake as a surface drinking water source includes all of the following:
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 5.  APPLICABILITY.  This division of this Act applies to projects or condemnation proceedings pending or commenced on or after the effective date of this division of this Act.

DIVISION III
DISPOSITION OF CONDEMNED PROPERTY
    Sec. 6.  Section 6B.56A, subsection 4, Code 2015, is amended to read as follows:
   4.  This section does not apply to property acquired for street and highway projects undertaken by the state, a county, or a city or to property that is subject to the disposition of property requirements under section 6B.56B.
    Sec. 7.  NEW SECTION.  6B.56B  Disposition of condemned property —— lake creation.
   1.  When two years have elapsed since property was condemned for the creation of a lake according to the requirements of section 6A.22, subsection 2, paragraph “c”, subparagraph (1), and the property has not been used for the purpose stated in the application filed pursuant to section 6B.3, and the acquiring agency has not taken action to dispose of the property pursuant to section 6B.56, the acquiring agency shall, within sixty days, adopt a resolution offering the property for sale to the prior owner at a price as provided in section 6B.56. If the resolution adopted approves an offer of sale to the prior owner, the offer shall be made in writing and mailed by certified mail to the prior owner. The prior owner has one hundred eighty days after the offer is mailed to purchase the property from the acquiring agency.
   2.  If the acquiring agency has not adopted a resolution described in subsection 1 within the sixty-day time period, the prior owner may, in writing, petition the acquiring agency to offer the property for sale to the prior owner at a price as provided in section 6B.56. Within sixty days after receipt of such a petition, the acquiring agency shall adopt a resolution described in subsection 1. If the acquiring agency does not adopt such a resolution within sixty days after receipt of the petition, the acquiring agency is deemed to have offered the property for sale to the prior owner.
   3.  The acquiring agency shall give written notice to the owner of the right to purchase the property under this section at the time damages are paid to the owner.
    Sec. 8.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 9.  APPLICABILITY.  This division of this Act applies to projects or condemnation proceedings pending or commenced on or after the effective date of this division of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the use of eminent domain authority and modifying and establishing related procedures.
   Division I of the bill amends provisions of Code section 6A.22, relating to the use of condemnation for creation of a lake for drinking water needs. The bill provides that for purposes of determining the number of acres justified as necessary for a surface drinking water source, the determination of surface drinking water capacity needs shall be limited to the needs of the population of the county where the lake is to be developed or created, according to the most recent federal decennial census. The bill also provides that for condemnation proceedings for which the application for condemnation was filed on or after July 1, 2012, and on or before January 1, 2015, the number of acres justified as necessary for a surface drinking water source shall not exceed the number of acres that would be necessary to provide the amount of drinking water consumed in the most recently completed calendar year prior to filing the application, in the county where the lake is to be developed or created.
   Division I of the bill takes effect upon enactment.
   Current Code section 6A.22(2)(c)(1) authorizes the use of eminent domain for development or creation of a lake and limits that authority based on the need for surface drinking water. Division II of the bill prohibits an acquiring agency from condemning private property for creation of a lake as a surface drinking water source if an existing drinking water source may be expanded or supplemented for such purpose.
   Division II of the bill takes effect upon enactment and applies to projects or condemnation proceedings pending or commenced on or after the effective date of the division.
   Division III of the bill provides that when two years have elapsed since property was condemned for the creation of a lake and the property has not been used for the purpose stated in the application, and the acquiring agency has not taken action to dispose of the property pursuant to Code section 6B.56, the acquiring agency shall, within 60 days, adopt a resolution offering the property for sale to the prior owner at a price as provided in Code section 6B.56. If the acquiring agency has not adopted a resolution within the 60-day time period, the prior owner may petition the acquiring agency to offer the property for sale to the prior owner at a price as provided in Code section 6B.56. The bill requires the acquiring agency to give written notice to the owner at the time damages are paid to the owner of the right to purchase the property under such circumstances.
   Division III also specifies that current Code section 6B.56A, relating to the disposition of condemned property, does not apply to property condemned under Code section 6A.22 for the creation of a lake.
   Division III of the bill takes effect upon enactment and applies to projects or condemnation proceedings pending or commenced on or after the effective date of division III of the bill.