H.F. _____ 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 2616YC (2) 86 md/sc 1/ 8

H.F. _____ 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, regardless of cost. 6 If an existing drinking water source is incapable of being 7 expanded or supplemented as a surface drinking water source , 8 the acquiring agency shall conduct a review of prudent and 9 feasible alternatives to provision of a drinking water source 10 prior to making a determination that such lake development or 11 creation is reasonable and necessary. Development or creation 12 of a lake as a surface drinking water source includes all of 13 the 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 DISPLACED PERSONS 22 Sec. 6. Section 6B.42, subsection 1, paragraph a, Code 2015, 23 is amended to read as follows: 24 a. The acquiring agency shall provide to the person, 25 in addition to any other sums of money in payment of just 26 compensation, the payments and assistance required by law, in 27 accordance with chapter 316 , as if the acquiring agency were a 28 displacing agency under that chapter , regardless of whether the 29 acquiring agency is subject to the federal Uniform Relocation 30 Act and regardless of whether the acquiring agency has received 31 or will receive federal financial assistance, as defined in 32 section 316.1 . 33 Sec. 7. Section 6B.42, subsection 2, paragraph a, Code 2015, 34 is amended to read as follows: 35 -2- LSB 2616YC (2) 86 md/sc 2/ 8

H.F. _____ a. A utility or railroad subject to section 327C.2 , or 1 chapters 476 , 478 , 479 , 479A , and 479B , authorized by law to 2 acquire property by condemnation, which acquires the property 3 of a person or displaces a person for a program or project 4 which has received or will receive federal financial assistance 5 as defined in section 316.1 , shall provide to the person, 6 in addition to any other sums of money in payment of just 7 compensation, the payments and assistance required by law, in 8 accordance with chapter 316 , regardless of whether the utility 9 or railroad is subject to the federal Uniform Relocation Act 10 and regardless of whether the utility or railroad has received 11 or will receive federal financial assistance, as defined in 12 section 316.1 . 13 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of this 14 Act, being deemed of immediate importance, takes effect upon 15 enactment. 16 Sec. 9. APPLICABILITY. This division of this Act applies to 17 projects or condemnation proceedings pending or commenced on or 18 after the effective date of this Act. 19 DIVISION IV 20 DISPOSITION OF CONDEMNED PROPERTY 21 Sec. 10. Section 6B.56, subsection 4, Code 2015, is amended 22 to read as follows: 23 4. The provisions of this section do not apply to the sale 24 of unused right-of-way property as provided in chapter 306 or 25 to property that is subject to the disposition of property 26 requirements under section 6B.56B . 27 Sec. 11. Section 6B.56A, subsection 1, Code 2015, is amended 28 to read as follows: 29 1. When five two years have elapsed since property was 30 condemned and the property has not been used for the purpose 31 stated in the application filed pursuant to section 6B.3 , and 32 the acquiring agency has not taken action to dispose of the 33 property pursuant to section 6B.56 , the acquiring agency shall, 34 within sixty days, adopt a resolution reaffirming the purpose 35 -3- LSB 2616YC (2) 86 md/sc 3/ 8

H.F. _____ for which the property will be used or offering the property 1 for sale to the prior owner at a price as provided in section 2 6B.56 . If the resolution adopted approves an offer of sale to 3 the prior owner, the offer shall be made in writing and mailed 4 by certified mail to the prior owner. The prior owner has one 5 hundred eighty days after the offer is mailed to purchase the 6 property from the acquiring agency. 7 Sec. 12. Section 6B.56A, subsection 4, Code 2015, is amended 8 to read as follows: 9 4. This section does not apply to property acquired for 10 street and highway projects undertaken by the state, a county, 11 or a city or to property that is subject to the disposition of 12 property requirements under section 6B.56B . 13 Sec. 13. NEW SECTION . 6B.56B Disposition of condemned 14 property —— lake creation. 15 1. If property was condemned according to the requirements 16 of section 6A.22, subsection 2, paragraph “c” , subparagraph 17 (1), for the creation of a lake, and the acquiring agency seeks 18 to dispose of all or a portion of such property, regardless of 19 whether the property has been used for the purpose stated in 20 the application filed pursuant to section 6B.3, the acquiring 21 agency shall first offer such property for sale to the prior 22 owner of the condemned property as provided in this section. 23 For purposes of this section, the prior owner of the real 24 property includes the successor in interest of the real 25 property. 26 2. a. Before the real property described in subsection 1 27 may be offered for sale to the general public, the acquiring 28 agency shall notify the prior owner of such real property in 29 writing of the acquiring agency’s intent to dispose of the real 30 property, of the current appraised value of the real property 31 to be offered for sale, and of the prior owner’s right to 32 purchase the real property to be offered for sale within sixty 33 days from the date the notice is served at a price equal to the 34 current appraised value of the real property to be offered for 35 -4- LSB 2616YC (2) 86 md/sc 4/ 8

H.F. _____ sale or the fair market value of the property to be offered for 1 sale at the time it was acquired by the acquiring agency from 2 the prior owner plus cleanup costs incurred by the acquiring 3 agency, whichever is less. However, the current appraised 4 value of the real property to be offered for sale shall be the 5 purchase price to be paid by the previous owner if any other 6 amount would result in a loss of federal funding for projects 7 funded in whole or in part with federal funds. The notice sent 8 by the acquiring agency as provided in this subsection shall 9 be filed with the office of the recorder in the county in which 10 the real property is located. 11 b. For purposes of this subsection, “cleanup costs” means 12 costs incurred to abate a nuisance or a public nuisance as 13 those terms are defined in chapters 657 and 657A and costs 14 incurred to recycle and remediate land pursuant to chapter 15 455H. 16 3. If the prior owner elects to purchase the real property 17 at the price established in subsection 2, before the expiration 18 of the sixty-day period, the prior owner shall notify the 19 acquiring agency in writing of this intention and file a copy 20 of this notice with the office of the recorder in the county in 21 which the real property is located. 22 Sec. 14. EFFECTIVE UPON ENACTMENT. This division of this 23 Act, being deemed of immediate importance, takes effect upon 24 enactment. 25 Sec. 15. APPLICABILITY. This division of this Act applies 26 to projects or condemnation proceedings pending or commenced on 27 or 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 -5- LSB 2616YC (2) 86 md/sc 5/ 8

H.F. _____ 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, regardless of 23 cost. 24 Division II of the bill takes effect upon enactment and 25 applies to projects or condemnation proceedings pending or 26 commenced on or after the effective date of the division. 27 Current Code section 6B.42 requires an acquiring agency and 28 certain utilities and railroads to provide to the condemnee, 29 in addition to any other sums of money in payment of just 30 compensation, the payments and assistance required by law, 31 in accordance with Code chapter 316, as if the acquiring 32 agency were a displacing agency under that Code chapter. 33 Code chapter 316 provides for certain relocation assistance 34 and relocation payments for displaced persons resulting from 35 -6- LSB 2616YC (2) 86 md/sc 6/ 8

H.F. _____ federally assisted programs or projects. Division III of the 1 bill amends Code section 6B.42 to provide that the relocation 2 assistance and relocation payments for displaced persons must 3 be provided by an acquiring agency, utility, or railroad, 4 regardless of whether such entity is subject to the federal 5 Uniform Relocation Act and regardless of whether the entity is 6 receiving federal financial assistance. 7 Division III of the bill takes effect upon enactment and 8 applies to projects or condemnation proceedings pending or 9 commenced on or after the effective date of division III of the 10 bill. 11 Division IV of the bill enacts new Code section 6B.56B, which 12 provides that if property was condemned for the creation of 13 a lake and the acquiring agency seeks to dispose of all or a 14 portion of such property, regardless of whether the property 15 has been used for the purpose stated in the condemnation 16 application, the acquiring agency shall first offer such 17 property for sale to the prior owner of the condemned property. 18 The bill specifies that notice that must be provided to the 19 prior owner before such property may be offered for sale to the 20 general public. The bill also specifies the price at which the 21 prior owner may purchase such property and the procedures to be 22 followed if the prior owner elects to purchase the property. 23 Division IV also specifies that current Code sections 6B.56 24 and 6B.56A, relating to the disposition of condemned property, 25 do not apply to property condemned under Code section 6A.22 for 26 the creation of a lake. 27 Current Code section 6B.56A provides that when five years 28 have elapsed since property was condemned and the property 29 has not been used for the purpose stated in the application 30 and the acquiring agency has not taken action to dispose of 31 the property pursuant to Code section 6B.56, the acquiring 32 agency shall, within 60 days, adopt a resolution reaffirming 33 the purpose for which the property will be used or offering 34 the property for sale to the prior owner. The bill changes 35 -7- LSB 2616YC (2) 86 md/sc 7/ 8