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House Study Bill 184 - IntroducedA Bill ForAn Act 1relating to eminent domain and condemnation, including
2the authority of acquiring agencies to use eminent domain,
3the procedures required for the use of eminent domain, and
4compensation paid to certain property owners and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2MERCHANT LINES
3 Section 1. Section 6A.21, subsection 1, Code 2017, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. 0b. “Merchant line” means the same as
6defined in section 478.6A, subsection 1.
7 Sec. 2. Section 6A.21, subsection 1, paragraph b, Code 2017,
8is amended to read as follows:
9b. “Private development purposes” means the construction of,
10or improvement related to, recreational trails, recreational
11development paid for primarily with private funds, merchant
12lines, housing and residential development, or commercial or
13industrial enterprise development.
14 Sec. 3. Section 6A.21, subsection 2, Code 2017, is amended
15to read as follows:
162. The limitation on the definition of public use,
17public purpose, or public improvement does not apply to the
18establishment, relocation, or improvement of a road pursuant
19to chapter 306, or to the establishment of a railway under the
20supervision of the department of transportation as provided in
21section 327C.2, or to an airport as defined in section 328.1,
22or to land acquired in order to replace or mitigate land used
23in a road project when federal law requires replacement or
24mitigation. This limitation also does not apply to utilities,
25persons, companies, or corporations under the jurisdiction of
26the Iowa utilities board in the department of commerce or to
27any other utility conferred the right by statute to condemn
28private property or to otherwise exercise the power of eminent
29domain, except to the extent such purpose includes construction
30of merchant lines.
31 Sec. 4. Section 6A.22, subsection 2, paragraph a,
32subparagraph (2), Code 2017, is amended to read as follows:
33(2) The acquisition of any interest in property necessary to
34the function of a public or private utility to the extent such
35purpose does not include construction of merchant lines, common
-1-1carrier, or airport or airport system.
2 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
3Act, being deemed of immediate importance, takes effect upon
4enactment.
5 Sec. 6. APPLICABILITY. This division of this Act applies to
6projects or condemnation proceedings commenced on or after the
7effective date of this division of this Act.
8DIVISION II
9LAKE DEVELOPMENT OR CREATION
10 Sec. 7. Section 6A.22, subsection 2, paragraph c,
11subparagraph (1), subparagraph divisions (b) and (c), Code
122017, are amended to read as follows:
13(b) For condemnation of property located in a county with
14a population of greater than nine thousand two hundred fifty
15but less than nine thousand three hundred, according to the
162010 federal decennial census, prior to making a determination
17that development or creation of a lake as a surface drinking
18water source is reasonable and necessary, the acquiring
19agency shall conduct a review of feasible alternatives to
20development or creation of a lake as a surface drinking water
21source. An acquiring agency shall not have the authority
22to condemn private property for the development or creation
23of a lake as a surface drinking water source if one or more
24feasible alternatives to provision of a drinking water source
25exist. An alternative that results in the physical expansion
26of an existing drinking water source is presumed to be a
27feasible alternative to development or creation of a lake as a
28surface drinking water source. An alternative that supplies
29drinking water by pipeline or other method of transportation or
30transmission from an existing source located within or outside
31this state at a reasonable cost is a feasible alternative
32to development or creation of a lake as a surface drinking
33water source. If private property is to be condemned for
34development or creation of a lake, only that number of acres
35justified as necessary for a surface drinking water source,
-2-1and not otherwise acquired, may be condemned. Upon receipt
2by the acquiring agency of a petition signed by not less
3than twenty-five percent of the affected property owners,
4the acquiring agency shall retain a certified hydrologist to
5conduct a review and analysis of the proposed development
6or creation of a lake. The certified hydrologist shall be
7selected by a majority of a committee comprised of all affected
8property owners and a representative of the acquiring agency.
9The acquiring agency shall be responsible for paying the fees
10and expenses of the certified hydrologist. For purposes of
11this subparagraph (1), “certified hydrologist” means a person
12certified by the American institute of hydrology. Development
13or creation of a lake as a surface drinking water source
14includes all of the following:
15(i) Construction of the dam, including sites for suitable
16borrow material and the auxiliary spillway.
17(ii) The water supply pool.
18(iii) The sediment pool.
19(iv) The flood control pool.
20(v) The floodwater retarding pool.
21(vi) The surrounding area upstream of the dam no higher in
22elevation than the top of the dam’s elevation.
23(vii) The appropriate setback distance required by state or
24federal laws and regulations to protect drinking water supply.
25(0c) An acquiring agency shall not have the authority to
26condemn private property for the development or creation of
27a lake as a surface drinking water source unless the United
28States army corps of engineers has performed an engineering
29review of the project and approved all required permits and
30authorizations for completion of the project.
31(c) (i) For purposes of this subparagraph (1), “number of
32acres justified as necessary for a surface drinking water source”
33means according to guidelines of the United States natural
34resource conservation service and according to analyses of
35surface drinking water capacity needs conducted by one or more
-3-1registered licensed professional engineers.
2(ii) For condemnation proceedings for which the application
3pursuant to section 6B.3 was filed after January 1, 2013, for
4condemnation of property located in a county with a population
5of greater than nine thousand two hundred fifty but less than
6nine thousand three hundred, according to the 2010 federal
7decennial census, which property sought to be condemned was in
8whole or in part described in a petition filed under section
96A.24, subsection 2, after January 1, 2013, but before January
101, 2014, regardless of whether the petitioner was determined by
11a court to not be a proper acquiring agency, “number of acres
12justified as necessary for a surface drinking water source”,
13as determined under subparagraph subdivision (i) shall not
14exceed the number of acres that would be necessary to provide
15the amount of drinking water to meet the needs of a population
16equal to the population of the county where the lake is to be
17developed or created, according to the most recent federal
18decennial census.
19(iii) Upon receipt by the acquiring agency of a petition
20signed by not less than twenty-five percent of the affected
21property owners, the acquiring agency shall retain a
22licensed professional engineer to conduct an additional
23independent review and analysis of the determinations made
24under subparagraph subdivisions (i) and (ii). The licensed
25professional engineer shall be selected by a majority of a
26committee comprised of all affected property owners and a
27representative of the acquiring agency. The acquiring agency
28shall be responsible for paying the fees and expenses of the
29licensed professional engineer.
30 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of this
31Act, being deemed of immediate importance, takes effect upon
32enactment.
33 Sec. 9. APPLICABILITY. This division of this Act applies to
34projects or condemnation proceedings pending or commenced on or
35after the effective date of this division of this Act.
-4-1DIVISION III
2PIPELINES
3 Sec. 10. NEW SECTION. 479B.9A Additional requirements —
4eminent domain.
5In addition to any other requirements for the granting
6of a petition pursuant to this chapter, an application for
7a permit to construct a pipeline involving the taking of
8property under eminent domain shall not be granted until
9the applicant has obtained through voluntary easements a
10minimum of seventy-five percent of the land area needed for
11the construction, operation, and maintenance of the pipeline
12and stations or equipment for the proper operation of the
13pipeline. If seventy-five percent of the land area needed has
14not been obtained through voluntary easements within two years
15following the date the application is filed with the board, the
16board shall reject the application and make a record of the
17rejection.
18 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 12. APPLICABILITY. This division of this Act applies
22to applications for permits filed but not yet acted upon on the
23effective date of this division of this Act and to applications
24for permits filed on or after the effective date of this
25division of this Act.
26DIVISION IV
27RELOCATION OF BUSINESSES AND FARM OPERATIONS
28 Sec. 13. Section 6B.26, subsection 1, Code 2017, is amended
29to read as follows:
301. A landowner shall not be dispossessed under condemnation
31proceedings of the landowner’s residence, dwelling house,
32outbuildings if the residence or dwelling house is also
33acquired, business, farm operation, orchard, or garden,
34until the damages thereto have been finally determined and
35paid. However, if the property described in this subsection
-5-1is condemned for highway purposes by the state department of
2transportation, the condemning authority may take possession
3of the property either after the damages have been finally
4determined and paid or one hundred eighty days after the
5compensation commission has determined and filed its award, in
6which event all of the appraisement of damages shall be paid
7to the property owner before the dispossession can take place.
8This subsection shall not apply to condemnation proceedings
9for drainage or levee improvements, or for public school
10purposes. For the purposes of this subsection, “outbuildings”
11means structures and improvements located in proximity to the
12landowner’s residence.
13 Sec. 14. NEW SECTION. 316.6A Replacement property payment
14to certain businesses and farm operations.
151. In addition to payments otherwise authorized by this
16chapter, the displacing agency shall make a payment to a
17displaced person who is displaced from the person’s place of
18business or farm operation if the displaced person owned the
19real property on which the business was conducted or where the
20farm operation was located for at least one year prior to the
21date of initiation of negotiations for the acquisition of the
22real property and if the displaced person purchases comparable
23replacement real property to conduct the displaced person’s
24business or farm operation within eighteen months following the
25date the displaced person vacates the real property or receives
26payment from the displacing agency under another provision of
27this chapter, whichever is later. The additional payment shall
28include the following amounts:
29a. An amount that when added to the acquisition cost of
30the real property acquired by the displacing agency, excluding
31any dwelling on the property, equals the reasonable cost of
32comparable real property for the displaced person’s business or
33farm operation, as determined by the displacing agency.
34b. An amount that compensates the displaced person for
35any increased interest costs and other debt service costs
-6-1that the displaced person is required to pay for financing
2the acquisition of comparable replacement real property. The
3amount shall be paid only if the real property acquired by
4the displacing agency was encumbered by a bona fide mortgage
5or land contract creating a valid lien on the real property,
6excluding the dwelling, or on the dwelling, for not less than
7one year immediately prior to the initiation of negotiations
8for the acquisition of the real property.
9c. The amount of actual, reasonable, and necessary expenses
10incurred by the displaced person for evidence of title,
11recording fees, and other costs incident to the purchase of
12comparable replacement real property, but not including prepaid
13expenses.
142. In addition to payments otherwise authorized by this
15chapter, the displacing agency shall make a payment to a
16displaced person or a person who is displaced from the person’s
17place of business or farm operation as an indirect result of
18the acquisition of real property by the displacing agency
19if the person in whole or in part owns the business or farm
20operation, the person leased the real property upon which the
21business was conducted or where the farm operation was located
22for at least one year prior to the date of initiation of
23negotiations for the acquisition of the real property, and the
24person leases or purchases comparable replacement real property
25to conduct the displaced person’s business or farm operation
26within eighteen months of the date the person vacates the
27real property or receives payment from the displacing agency
28under another provision of this chapter, whichever is later.
29The displacing agency shall determine whether a displacement
30described in this subsection has occurred. The additional
31payment shall include the following amounts:
32a. If the person leases comparable real property, the
33difference between the average monthly amount of the lease of
34the comparable real property and the average monthly amount
35of the lease for the real property acquired by the displacing
-7-1agency, multiplied by forty-two.
2b. If the person purchases comparable real property to
3conduct the person’s business or operate the person’s farm, an
4amount calculated consistent with the provisions of subsection
51, paragraphs “a” and “c”.
63. All determinations to carry out this section shall be
7made in accordance with administrative rules adopted by the
8department.
9 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this
10Act, being deemed of immediate importance, takes effect upon
11enactment.
12 Sec. 16. APPLICABILITY. This division of this Act applies
13to programs or projects or condemnation proceedings pending or
14commenced on or after the effective date of this division of
15this Act.
16DIVISION V
17FEASIBLE ALTERNATIVES
18 Sec. 17. Section 6A.22, subsection 2, paragraph b, Code
192017, is amended to read as follows:
20b. (1) Except as specifically included in the definition
21in paragraph “a”, “public use” or “public purpose” or “public
22improvement” does not mean economic development activities
23resulting in increased tax revenues, increased employment
24opportunities, privately owned or privately funded housing and
25residential development, privately owned or privately funded
26commercial or industrial development, or the lease of publicly
27owned property to a private party.
28(2) “Public use”, “public purpose”, or “public improvement”
29 does not include any use, purpose, or improvement included
30in paragraph “a” if, in lieu of condemning property, a
31feasible alternative location for the use, purpose, or
32improvement exists and the owners of the property comprising
33the alternative location have offered such property for sale
34to the acquiring agency at the property’s fair market value or
35have consented to condemnation of the property.
-8-1 Sec. 18. EFFECTIVE UPON ENACTMENT. This division of this
2Act, being deemed of immediate importance, takes effect upon
3enactment.
4 Sec. 19. APPLICABILITY. This division of this Act applies
5to projects or condemnation proceedings pending or commenced on
6or after the effective date of this division of this Act.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to the authority of acquiring agencies to
11use eminent domain and the procedures and compensation required
12for the use of eminent domain.
13Division I of the bill establishes a definition of “merchant
14line” for purposes of Code chapters 6A and 6B that is the
15same as defined in Code section 478.6A(1). The bill also
16adds merchant lines to the definition of “private development
17purposes”. Code section 6A.21 provides that the authority
18to condemn property for a public use, public purpose, or
19public improvement does not include the authority to condemn
20agricultural land for private development purposes unless the
21owner of the agricultural land consents to the condemnation.
22The bill also specifies under Code section 6A.21(2) that the
23limitation on the definition of public use, public purpose,
24or public improvement does apply to companies under the
25jurisdiction of the Iowa utilities board or to any other
26utility conferred the right by statute to condemn private
27property to the extent such purpose includes construction of
28merchant lines.
29Division I of the bill takes effect upon enactment and
30applies to projects or condemnation proceedings pending or
31commenced on or after the effective date of division I of the
32bill.
33Division II of the bill provides that for condemnation
34of property located in a county with a population of greater
35than 9,250 but less than 9,300, according to the 2010 federal
-9-1decennial census, an acquiring agency shall not have the
2authority to condemn private property for the development or
3creation of a lake as a surface drinking water source unless
4the United States army corps of engineers has performed an
5engineering review of the project and approved all required
6permits and authorizations for completion of the project. The
7bill also requires, at the expense of the acquiring agency, a
8review and analysis of the proposed development or creation of
9a lake by a certified hydrologist upon receipt by the acquiring
10agency of a petition signed by not less than 25 percent of
11the affected property owners. The certified hydrologist is
12selected by a committee comprised of all affected property
13owners and a representative of the acquiring agency.
14In addition to the analysis of surface drinking water
15capacity and the determination of the number of acres justified
16as necessary for a surface drinking water source by one
17or more licensed professional engineers, the bill provides
18that an additional independent review and analysis of such
19determinations shall be conducted, at the expense of the
20acquiring agency, by a licensed professional engineer upon
21receipt by the acquiring agency of a petition signed by not
22less than 25 percent of the affected property owners. The
23licensed professional engineer is selected by a committee
24comprised of all affected property owners and a representative
25of the acquiring agency.
26Division II of the bill takes effect upon enactment and
27applies to projects or condemnation proceedings pending or
28commenced on or after the effective date of division II of the
29bill.
30Current Code chapter 479B allows the Iowa utilities
31board to grant permits for the construction of hazardous
32liquid pipelines and grant eminent domain rights to pipeline
33companies to construct such pipelines. Division III of the
34bill establishes new Code section 479B.9A to require that
35in addition to any other requirements for granting a permit
-10-1pursuant to Code chapter 479B, an application for a permit
2involving the taking of property under eminent domain will not
3be granted until the applicant obtains at least 75 percent
4of the land area needed for the project through voluntary
5easements. If 75 percent of the land area needed has not been
6obtained through voluntary easements within two years of filing
7the application, the board must reject the application.
8Division III of the bill takes effect upon enactment and is
9applicable to applications for permits filed but not yet acted
10upon on the effective date of division III of the bill and to
11applications for permits filed on or after the effective date
12of division III of the bill.
13Division IV of the bill relates to the acquisition of real
14property by governmental entities by modifying criteria for
15dispossessing owners of property and authorizing payments
16to certain displaced persons operating a business or a farm
17operation.
18The bill amends Code section 6B.26 by adding business and
19farm operation to the list of types of property from which
20a landowner shall not be dispossessed under condemnation
21proceedings until the damages for the property have been
22finally determined and paid.
23The bill provides that, in addition to payments otherwise
24authorized by Code chapter 316, a displacing agency shall make
25a payment to a person who is displaced from the person’s place
26of business or farm operation if the displaced person owned the
27real property on which the business was conducted or where the
28farm operation was located for at least one year prior to the
29date of initiation of negotiations for the acquisition of the
30real property and if the displaced person purchases comparable
31replacement real property to conduct the displaced person’s
32business or farm operation within 18 months following the date
33the displaced person vacates the real property or receives
34payment from the displacing agency under another provision of
35Code chapter 316, whichever is later. The bill establishes the
-11-1methodology for determining the amount of the payment based on
2certain specified costs incurred by the displaced person in
3acquiring comparable real property.
4The bill also provides for payments to a displaced person or
5a person who is displaced from the person’s place of business
6or farm operation as an indirect result of the acquisition
7of real property by the displacing agency if the person in
8whole or in part owns the business or farm operation, the
9person leased the real property upon which the business was
10conducted or where the farm operation was located for at least
11one year prior to the date of initiation of negotiations for
12the acquisition of the real property, and the person leases or
13purchases comparable replacement real property to conduct the
14displaced person’s business or farm operation within 18 months
15of the date the person vacates the real property or receives
16payment from the displacing agency under another provision
17of Code chapter 316, whichever is later. Under the bill,
18the displacing agency determines whether such a displacement
19from leased property has occurred pursuant to rules adopted by
20the department of transportation. The bill establishes the
21methodology for determining the amount of the payment based on
22certain specified costs incurred by the person in acquiring or
23leasing comparable real property.
24Division IV takes effect upon enactment and applies to
25projects or condemnation proceedings pending or commenced on or
26after the effective date of division IV of the bill.
27Current Code section 6A.22 defines public purpose, public
28use, and public improvement for purposes of establishing the
29authority of an acquiring agency to condemn private property.
30Division V of the bill provides that public use, public
31purpose, or public improvement does not include any use,
32purpose, or improvement if, in lieu of condemning property,
33a feasible alternative location for the use, purpose, or
34improvement exists and the owners of the property comprising
35the alternative location have offered such property for sale
-12-1to the acquiring agency at the property’s fair market value or
2have consented to condemnation.
3Division V of the bill takes effect upon enactment and
4applies to projects or condemnation proceedings pending or
5commenced on or after the effective date of division V of the
6bill.
-13-md/sc/rn
2the authority of acquiring agencies to use eminent domain,
3the procedures required for the use of eminent domain, and
4compensation paid to certain property owners and including
5effective date and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2MERCHANT LINES
3 Section 1. Section 6A.21, subsection 1, Code 2017, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. 0b. “Merchant line” means the same as
6defined in section 478.6A, subsection 1.
7 Sec. 2. Section 6A.21, subsection 1, paragraph b, Code 2017,
8is amended to read as follows:
9b. “Private development purposes” means the construction of,
10or improvement related to, recreational trails, recreational
11development paid for primarily with private funds, merchant
12lines, housing and residential development, or commercial or
13industrial enterprise development.
14 Sec. 3. Section 6A.21, subsection 2, Code 2017, is amended
15to read as follows:
162. The limitation on the definition of public use,
17public purpose, or public improvement does not apply to the
18establishment, relocation, or improvement of a road pursuant
19to chapter 306, or to the establishment of a railway under the
20supervision of the department of transportation as provided in
21section 327C.2, or to an airport as defined in section 328.1,
22or to land acquired in order to replace or mitigate land used
23in a road project when federal law requires replacement or
24mitigation. This limitation also does not apply to utilities,
25persons, companies, or corporations under the jurisdiction of
26the Iowa utilities board in the department of commerce or to
27any other utility conferred the right by statute to condemn
28private property or to otherwise exercise the power of eminent
29domain, except to the extent such purpose includes construction
30of merchant lines.
31 Sec. 4. Section 6A.22, subsection 2, paragraph a,
32subparagraph (2), Code 2017, is amended to read as follows:
33(2) The acquisition of any interest in property necessary to
34the function of a public or private utility to the extent such
35purpose does not include construction of merchant lines, common
-1-1carrier, or airport or airport system.
2 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
3Act, being deemed of immediate importance, takes effect upon
4enactment.
5 Sec. 6. APPLICABILITY. This division of this Act applies to
6projects or condemnation proceedings commenced on or after the
7effective date of this division of this Act.
8DIVISION II
9LAKE DEVELOPMENT OR CREATION
10 Sec. 7. Section 6A.22, subsection 2, paragraph c,
11subparagraph (1), subparagraph divisions (b) and (c), Code
122017, are amended to read as follows:
13(b) For condemnation of property located in a county with
14a population of greater than nine thousand two hundred fifty
15but less than nine thousand three hundred, according to the
162010 federal decennial census, prior to making a determination
17that development or creation of a lake as a surface drinking
18water source is reasonable and necessary, the acquiring
19agency shall conduct a review of feasible alternatives to
20development or creation of a lake as a surface drinking water
21source. An acquiring agency shall not have the authority
22to condemn private property for the development or creation
23of a lake as a surface drinking water source if one or more
24feasible alternatives to provision of a drinking water source
25exist. An alternative that results in the physical expansion
26of an existing drinking water source is presumed to be a
27feasible alternative to development or creation of a lake as a
28surface drinking water source. An alternative that supplies
29drinking water by pipeline or other method of transportation or
30transmission from an existing source located within or outside
31this state at a reasonable cost is a feasible alternative
32to development or creation of a lake as a surface drinking
33water source. If private property is to be condemned for
34development or creation of a lake, only that number of acres
35justified as necessary for a surface drinking water source,
-2-1and not otherwise acquired, may be condemned. Upon receipt
2by the acquiring agency of a petition signed by not less
3than twenty-five percent of the affected property owners,
4the acquiring agency shall retain a certified hydrologist to
5conduct a review and analysis of the proposed development
6or creation of a lake. The certified hydrologist shall be
7selected by a majority of a committee comprised of all affected
8property owners and a representative of the acquiring agency.
9The acquiring agency shall be responsible for paying the fees
10and expenses of the certified hydrologist. For purposes of
11this subparagraph (1), “certified hydrologist” means a person
12certified by the American institute of hydrology. Development
13or creation of a lake as a surface drinking water source
14includes all of the following:
15(i) Construction of the dam, including sites for suitable
16borrow material and the auxiliary spillway.
17(ii) The water supply pool.
18(iii) The sediment pool.
19(iv) The flood control pool.
20(v) The floodwater retarding pool.
21(vi) The surrounding area upstream of the dam no higher in
22elevation than the top of the dam’s elevation.
23(vii) The appropriate setback distance required by state or
24federal laws and regulations to protect drinking water supply.
25(0c) An acquiring agency shall not have the authority to
26condemn private property for the development or creation of
27a lake as a surface drinking water source unless the United
28States army corps of engineers has performed an engineering
29review of the project and approved all required permits and
30authorizations for completion of the project.
31(c) (i) For purposes of this subparagraph (1), “number of
32acres justified as necessary for a surface drinking water source”
33means according to guidelines of the United States natural
34resource conservation service and according to analyses of
35surface drinking water capacity needs conducted by one or more
-3-1registered licensed professional engineers.
2(ii) For condemnation proceedings for which the application
3pursuant to section 6B.3 was filed after January 1, 2013, for
4condemnation of property located in a county with a population
5of greater than nine thousand two hundred fifty but less than
6nine thousand three hundred, according to the 2010 federal
7decennial census, which property sought to be condemned was in
8whole or in part described in a petition filed under section
96A.24, subsection 2, after January 1, 2013, but before January
101, 2014, regardless of whether the petitioner was determined by
11a court to not be a proper acquiring agency, “number of acres
12justified as necessary for a surface drinking water source”,
13as determined under subparagraph subdivision (i) shall not
14exceed the number of acres that would be necessary to provide
15the amount of drinking water to meet the needs of a population
16equal to the population of the county where the lake is to be
17developed or created, according to the most recent federal
18decennial census.
19(iii) Upon receipt by the acquiring agency of a petition
20signed by not less than twenty-five percent of the affected
21property owners, the acquiring agency shall retain a
22licensed professional engineer to conduct an additional
23independent review and analysis of the determinations made
24under subparagraph subdivisions (i) and (ii). The licensed
25professional engineer shall be selected by a majority of a
26committee comprised of all affected property owners and a
27representative of the acquiring agency. The acquiring agency
28shall be responsible for paying the fees and expenses of the
29licensed professional engineer.
30 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of this
31Act, being deemed of immediate importance, takes effect upon
32enactment.
33 Sec. 9. APPLICABILITY. This division of this Act applies to
34projects or condemnation proceedings pending or commenced on or
35after the effective date of this division of this Act.
-4-1DIVISION III
2PIPELINES
3 Sec. 10. NEW SECTION. 479B.9A Additional requirements —
4eminent domain.
5In addition to any other requirements for the granting
6of a petition pursuant to this chapter, an application for
7a permit to construct a pipeline involving the taking of
8property under eminent domain shall not be granted until
9the applicant has obtained through voluntary easements a
10minimum of seventy-five percent of the land area needed for
11the construction, operation, and maintenance of the pipeline
12and stations or equipment for the proper operation of the
13pipeline. If seventy-five percent of the land area needed has
14not been obtained through voluntary easements within two years
15following the date the application is filed with the board, the
16board shall reject the application and make a record of the
17rejection.
18 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 12. APPLICABILITY. This division of this Act applies
22to applications for permits filed but not yet acted upon on the
23effective date of this division of this Act and to applications
24for permits filed on or after the effective date of this
25division of this Act.
26DIVISION IV
27RELOCATION OF BUSINESSES AND FARM OPERATIONS
28 Sec. 13. Section 6B.26, subsection 1, Code 2017, is amended
29to read as follows:
301. A landowner shall not be dispossessed under condemnation
31proceedings of the landowner’s residence, dwelling house,
32outbuildings if the residence or dwelling house is also
33acquired, business, farm operation, orchard, or garden,
34until the damages thereto have been finally determined and
35paid. However, if the property described in this subsection
-5-1is condemned for highway purposes by the state department of
2transportation, the condemning authority may take possession
3of the property either after the damages have been finally
4determined and paid or one hundred eighty days after the
5compensation commission has determined and filed its award, in
6which event all of the appraisement of damages shall be paid
7to the property owner before the dispossession can take place.
8This subsection shall not apply to condemnation proceedings
9for drainage or levee improvements, or for public school
10purposes. For the purposes of this subsection, “outbuildings”
11means structures and improvements located in proximity to the
12landowner’s residence.
13 Sec. 14. NEW SECTION. 316.6A Replacement property payment
14to certain businesses and farm operations.
151. In addition to payments otherwise authorized by this
16chapter, the displacing agency shall make a payment to a
17displaced person who is displaced from the person’s place of
18business or farm operation if the displaced person owned the
19real property on which the business was conducted or where the
20farm operation was located for at least one year prior to the
21date of initiation of negotiations for the acquisition of the
22real property and if the displaced person purchases comparable
23replacement real property to conduct the displaced person’s
24business or farm operation within eighteen months following the
25date the displaced person vacates the real property or receives
26payment from the displacing agency under another provision of
27this chapter, whichever is later. The additional payment shall
28include the following amounts:
29a. An amount that when added to the acquisition cost of
30the real property acquired by the displacing agency, excluding
31any dwelling on the property, equals the reasonable cost of
32comparable real property for the displaced person’s business or
33farm operation, as determined by the displacing agency.
34b. An amount that compensates the displaced person for
35any increased interest costs and other debt service costs
-6-1that the displaced person is required to pay for financing
2the acquisition of comparable replacement real property. The
3amount shall be paid only if the real property acquired by
4the displacing agency was encumbered by a bona fide mortgage
5or land contract creating a valid lien on the real property,
6excluding the dwelling, or on the dwelling, for not less than
7one year immediately prior to the initiation of negotiations
8for the acquisition of the real property.
9c. The amount of actual, reasonable, and necessary expenses
10incurred by the displaced person for evidence of title,
11recording fees, and other costs incident to the purchase of
12comparable replacement real property, but not including prepaid
13expenses.
142. In addition to payments otherwise authorized by this
15chapter, the displacing agency shall make a payment to a
16displaced person or a person who is displaced from the person’s
17place of business or farm operation as an indirect result of
18the acquisition of real property by the displacing agency
19if the person in whole or in part owns the business or farm
20operation, the person leased the real property upon which the
21business was conducted or where the farm operation was located
22for at least one year prior to the date of initiation of
23negotiations for the acquisition of the real property, and the
24person leases or purchases comparable replacement real property
25to conduct the displaced person’s business or farm operation
26within eighteen months of the date the person vacates the
27real property or receives payment from the displacing agency
28under another provision of this chapter, whichever is later.
29The displacing agency shall determine whether a displacement
30described in this subsection has occurred. The additional
31payment shall include the following amounts:
32a. If the person leases comparable real property, the
33difference between the average monthly amount of the lease of
34the comparable real property and the average monthly amount
35of the lease for the real property acquired by the displacing
-7-1agency, multiplied by forty-two.
2b. If the person purchases comparable real property to
3conduct the person’s business or operate the person’s farm, an
4amount calculated consistent with the provisions of subsection
51, paragraphs “a” and “c”.
63. All determinations to carry out this section shall be
7made in accordance with administrative rules adopted by the
8department.
9 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this
10Act, being deemed of immediate importance, takes effect upon
11enactment.
12 Sec. 16. APPLICABILITY. This division of this Act applies
13to programs or projects or condemnation proceedings pending or
14commenced on or after the effective date of this division of
15this Act.
16DIVISION V
17FEASIBLE ALTERNATIVES
18 Sec. 17. Section 6A.22, subsection 2, paragraph b, Code
192017, is amended to read as follows:
20b. (1) Except as specifically included in the definition
21in paragraph “a”, “public use” or “public purpose” or “public
22improvement” does not mean economic development activities
23resulting in increased tax revenues, increased employment
24opportunities, privately owned or privately funded housing and
25residential development, privately owned or privately funded
26commercial or industrial development, or the lease of publicly
27owned property to a private party.
28(2) “Public use”, “public purpose”, or “public improvement”
29 does not include any use, purpose, or improvement included
30in paragraph “a” if, in lieu of condemning property, a
31feasible alternative location for the use, purpose, or
32improvement exists and the owners of the property comprising
33the alternative location have offered such property for sale
34to the acquiring agency at the property’s fair market value or
35have consented to condemnation of the property.
-8-1 Sec. 18. EFFECTIVE UPON ENACTMENT. This division of this
2Act, being deemed of immediate importance, takes effect upon
3enactment.
4 Sec. 19. APPLICABILITY. This division of this Act applies
5to projects or condemnation proceedings pending or commenced on
6or after the effective date of this division of this Act.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
10This bill relates to the authority of acquiring agencies to
11use eminent domain and the procedures and compensation required
12for the use of eminent domain.
13Division I of the bill establishes a definition of “merchant
14line” for purposes of Code chapters 6A and 6B that is the
15same as defined in Code section 478.6A(1). The bill also
16adds merchant lines to the definition of “private development
17purposes”. Code section 6A.21 provides that the authority
18to condemn property for a public use, public purpose, or
19public improvement does not include the authority to condemn
20agricultural land for private development purposes unless the
21owner of the agricultural land consents to the condemnation.
22The bill also specifies under Code section 6A.21(2) that the
23limitation on the definition of public use, public purpose,
24or public improvement does apply to companies under the
25jurisdiction of the Iowa utilities board or to any other
26utility conferred the right by statute to condemn private
27property to the extent such purpose includes construction of
28merchant lines.
29Division I of the bill takes effect upon enactment and
30applies to projects or condemnation proceedings pending or
31commenced on or after the effective date of division I of the
32bill.
33Division II of the bill provides that for condemnation
34of property located in a county with a population of greater
35than 9,250 but less than 9,300, according to the 2010 federal
-9-1decennial census, an acquiring agency shall not have the
2authority to condemn private property for the development or
3creation of a lake as a surface drinking water source unless
4the United States army corps of engineers has performed an
5engineering review of the project and approved all required
6permits and authorizations for completion of the project. The
7bill also requires, at the expense of the acquiring agency, a
8review and analysis of the proposed development or creation of
9a lake by a certified hydrologist upon receipt by the acquiring
10agency of a petition signed by not less than 25 percent of
11the affected property owners. The certified hydrologist is
12selected by a committee comprised of all affected property
13owners and a representative of the acquiring agency.
14In addition to the analysis of surface drinking water
15capacity and the determination of the number of acres justified
16as necessary for a surface drinking water source by one
17or more licensed professional engineers, the bill provides
18that an additional independent review and analysis of such
19determinations shall be conducted, at the expense of the
20acquiring agency, by a licensed professional engineer upon
21receipt by the acquiring agency of a petition signed by not
22less than 25 percent of the affected property owners. The
23licensed professional engineer is selected by a committee
24comprised of all affected property owners and a representative
25of the acquiring agency.
26Division II of the bill takes effect upon enactment and
27applies to projects or condemnation proceedings pending or
28commenced on or after the effective date of division II of the
29bill.
30Current Code chapter 479B allows the Iowa utilities
31board to grant permits for the construction of hazardous
32liquid pipelines and grant eminent domain rights to pipeline
33companies to construct such pipelines. Division III of the
34bill establishes new Code section 479B.9A to require that
35in addition to any other requirements for granting a permit
-10-1pursuant to Code chapter 479B, an application for a permit
2involving the taking of property under eminent domain will not
3be granted until the applicant obtains at least 75 percent
4of the land area needed for the project through voluntary
5easements. If 75 percent of the land area needed has not been
6obtained through voluntary easements within two years of filing
7the application, the board must reject the application.
8Division III of the bill takes effect upon enactment and is
9applicable to applications for permits filed but not yet acted
10upon on the effective date of division III of the bill and to
11applications for permits filed on or after the effective date
12of division III of the bill.
13Division IV of the bill relates to the acquisition of real
14property by governmental entities by modifying criteria for
15dispossessing owners of property and authorizing payments
16to certain displaced persons operating a business or a farm
17operation.
18The bill amends Code section 6B.26 by adding business and
19farm operation to the list of types of property from which
20a landowner shall not be dispossessed under condemnation
21proceedings until the damages for the property have been
22finally determined and paid.
23The bill provides that, in addition to payments otherwise
24authorized by Code chapter 316, a displacing agency shall make
25a payment to a person who is displaced from the person’s place
26of business or farm operation if the displaced person owned the
27real property on which the business was conducted or where the
28farm operation was located for at least one year prior to the
29date of initiation of negotiations for the acquisition of the
30real property and if the displaced person purchases comparable
31replacement real property to conduct the displaced person’s
32business or farm operation within 18 months following the date
33the displaced person vacates the real property or receives
34payment from the displacing agency under another provision of
35Code chapter 316, whichever is later. The bill establishes the
-11-1methodology for determining the amount of the payment based on
2certain specified costs incurred by the displaced person in
3acquiring comparable real property.
4The bill also provides for payments to a displaced person or
5a person who is displaced from the person’s place of business
6or farm operation as an indirect result of the acquisition
7of real property by the displacing agency if the person in
8whole or in part owns the business or farm operation, the
9person leased the real property upon which the business was
10conducted or where the farm operation was located for at least
11one year prior to the date of initiation of negotiations for
12the acquisition of the real property, and the person leases or
13purchases comparable replacement real property to conduct the
14displaced person’s business or farm operation within 18 months
15of the date the person vacates the real property or receives
16payment from the displacing agency under another provision
17of Code chapter 316, whichever is later. Under the bill,
18the displacing agency determines whether such a displacement
19from leased property has occurred pursuant to rules adopted by
20the department of transportation. The bill establishes the
21methodology for determining the amount of the payment based on
22certain specified costs incurred by the person in acquiring or
23leasing comparable real property.
24Division IV takes effect upon enactment and applies to
25projects or condemnation proceedings pending or commenced on or
26after the effective date of division IV of the bill.
27Current Code section 6A.22 defines public purpose, public
28use, and public improvement for purposes of establishing the
29authority of an acquiring agency to condemn private property.
30Division V of the bill provides that public use, public
31purpose, or public improvement does not include any use,
32purpose, or improvement if, in lieu of condemning property,
33a feasible alternative location for the use, purpose, or
34improvement exists and the owners of the property comprising
35the alternative location have offered such property for sale
-12-1to the acquiring agency at the property’s fair market value or
2have consented to condemnation.
3Division V of the bill takes effect upon enactment and
4applies to projects or condemnation proceedings pending or
5commenced on or after the effective date of division V of the
6bill.
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