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House File 603 - 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 of a
6petition pursuant to this chapter, an application for a permit
7to construct a pipeline involving the taking of property under
8eminent domain shall not be granted until the applicant has
9obtained through voluntary easements a minimum of seventy-five
10percent of the parcels needed for the construction, operation,
11and maintenance of the pipeline and stations or equipment for
12the proper operation of the pipeline. If seventy-five percent
13of the parcels needed has not been obtained through voluntary
14easements within two years following the date the application
15is filed with the board, the board shall reject the application
16and make a record of the rejection.
17 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this
18Act, being deemed of immediate importance, takes effect upon
19enactment.
20 Sec. 12. APPLICABILITY. This division of this Act applies
21to applications for permits filed but not yet acted upon on the
22effective date of this division of this Act and to applications
23for permits filed on or after the effective date of this
24division of this Act.
25DIVISION IV
26RELOCATION OF BUSINESSES AND FARM OPERATIONS
27 Sec. 13. Section 6B.26, subsection 1, Code 2017, is amended
28to read as follows:
291. A landowner shall not be dispossessed under condemnation
30proceedings of the landowner’s residence, dwelling house,
31outbuildings if the residence or dwelling house is also
32acquired, business, farm operation, orchard, or garden,
33until the damages thereto have been finally determined and
34paid. However, if the property described in this subsection
35is condemned for highway purposes by the state department of
-5-1transportation, the condemning authority may take possession
2of the property either after the damages have been finally
3determined and paid or one hundred eighty days after the
4compensation commission has determined and filed its award, in
5which event all of the appraisement of damages shall be paid
6to the property owner before the dispossession can take place.
7This subsection shall not apply to condemnation proceedings
8for drainage or levee improvements, or for public school
9purposes. For the purposes of this subsection, “outbuildings”
10means structures and improvements located in proximity to the
11landowner’s residence.
12 Sec. 14. NEW SECTION. 316.6A Replacement property payment
13to certain businesses and farm operations.
141. In addition to payments otherwise authorized by this
15chapter, the displacing agency shall make a payment to a
16displaced person who is displaced from the person’s place of
17business or farm operation if the displaced person owned the
18real property on which the business was conducted or where the
19farm operation was located for at least one year prior to the
20date of initiation of negotiations for the acquisition of the
21real property and if the displaced person purchases comparable
22replacement real property to conduct the displaced person’s
23business or farm operation within eighteen months following the
24date the displaced person vacates the real property or receives
25payment from the displacing agency under another provision of
26this chapter, whichever is later. The additional payment shall
27include the following amounts:
28a. An amount that when added to the acquisition cost of
29the real property acquired by the displacing agency, excluding
30any dwelling on the property, equals the reasonable cost of
31comparable real property for the displaced person’s business or
32farm operation, as determined by the displacing agency.
33b. An amount that compensates the displaced person for
34any increased interest costs and other debt service costs
35that the displaced person is required to pay for financing
-6-1the acquisition of comparable replacement real property. The
2amount shall be paid only if the real property acquired by
3the displacing agency was encumbered by a bona fide mortgage
4or land contract creating a valid lien on the real property,
5excluding the dwelling, or on the dwelling, for not less than
6one year immediately prior to the initiation of negotiations
7for the acquisition of the real property.
8c. The amount of actual, reasonable, and necessary expenses
9incurred by the displaced person for evidence of title,
10recording fees, and other costs incident to the purchase of
11comparable replacement real property, but not including prepaid
12expenses.
132. In addition to payments otherwise authorized by this
14chapter, the displacing agency shall make a payment to a
15displaced person or a person who is displaced from the person’s
16place of business or farm operation as an indirect result of
17the acquisition of real property by the displacing agency
18if the person in whole or in part owns the business or farm
19operation, the person leased the real property upon which the
20business was conducted or where the farm operation was located
21for at least one year prior to the date of initiation of
22negotiations for the acquisition of the real property, and the
23person leases or purchases comparable replacement real property
24to conduct the displaced person’s business or farm operation
25within eighteen months of the date the person vacates the
26real property or receives payment from the displacing agency
27under another provision of this chapter, whichever is later.
28The displacing agency shall determine whether a displacement
29described in this subsection has occurred. The additional
30payment shall include the following amounts:
31a. If the person leases comparable real property, the
32difference between the average monthly amount of the lease of
33the comparable real property and the average monthly amount
34of the lease for the real property acquired by the displacing
35agency, multiplied by forty-two.
-7- 1b. If the person purchases comparable real property to
2conduct the person’s business or operate the person’s farm, an
3amount calculated consistent with the provisions of subsection
41, paragraphs “a” and “c”.
53. All determinations to carry out this section shall be
6made in accordance with administrative rules adopted by the
7department.
8 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this
9Act, being deemed of immediate importance, takes effect upon
10enactment.
11 Sec. 16. APPLICABILITY. This division of this Act applies
12to programs or projects or condemnation proceedings pending or
13commenced on or after the effective date of this division of
14this Act.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill relates to the authority of acquiring agencies to
19use eminent domain and the procedures and compensation required
20for the use of eminent domain.
21Division I of the bill establishes a definition of “merchant
22line” for purposes of Code chapters 6A and 6B that is the
23same as defined in Code section 478.6A(1). The bill also
24adds merchant lines to the definition of “private development
25purposes”. Code section 6A.21 provides that the authority
26to condemn property for a public use, public purpose, or
27public improvement does not include the authority to condemn
28agricultural land for private development purposes unless the
29owner of the agricultural land consents to the condemnation.
30The bill also specifies under Code section 6A.21(2) that the
31limitation on the definition of public use, public purpose,
32or public improvement does apply to companies under the
33jurisdiction of the Iowa utilities board or to any other
34utility conferred the right by statute to condemn private
35property to the extent such purpose includes construction of
-8-1merchant lines.
2Division I of the bill takes effect upon enactment and
3applies to projects or condemnation proceedings pending or
4commenced on or after the effective date of division I of the
5bill.
6Division II of the bill provides that for condemnation
7of property located in a county with a population of greater
8than 9,250 but less than 9,300, according to the 2010 federal
9decennial census, an acquiring agency shall not have the
10authority to condemn private property for the development or
11creation of a lake as a surface drinking water source unless
12the United States army corps of engineers has performed an
13engineering review of the project and approved all required
14permits and authorizations for completion of the project. The
15bill also requires, at the expense of the acquiring agency, a
16review and analysis of the proposed development or creation of
17a lake by a certified hydrologist upon receipt by the acquiring
18agency of a petition signed by not less than 25 percent of
19the affected property owners. The certified hydrologist is
20selected by a committee comprised of all affected property
21owners and a representative of the acquiring agency.
22In addition to the analysis of surface drinking water
23capacity and the determination of the number of acres justified
24as necessary for a surface drinking water source by one
25or more licensed professional engineers, the bill provides
26that an additional independent review and analysis of such
27determinations shall be conducted, at the expense of the
28acquiring agency, by a licensed professional engineer upon
29receipt by the acquiring agency of a petition signed by not
30less than 25 percent of the affected property owners. The
31licensed professional engineer is selected by a committee
32comprised of all affected property owners and a representative
33of the acquiring agency.
34Division II of the bill takes effect upon enactment and
35applies to projects or condemnation proceedings pending or
-9-1commenced on or after the effective date of division II of the
2bill.
3Current Code chapter 479B allows the Iowa utilities
4board to grant permits for the construction of hazardous
5liquid pipelines and grant eminent domain rights to pipeline
6companies to construct such pipelines. Division III of the
7bill establishes new Code section 479B.9A to require that
8in addition to any other requirements for granting a permit
9pursuant to Code chapter 479B, an application for a permit
10involving the taking of property under eminent domain will not
11be granted until the applicant obtains at least 75 percent of
12the parcels needed for the project through voluntary easements.
13If 75 percent of the parcels needed has not been obtained
14through voluntary easements within two years of filing the
15application, the board must reject the application.
16Division III of the bill takes effect upon enactment and is
17applicable to applications for permits filed but not yet acted
18upon on the effective date of division III of the bill and to
19applications for permits filed on or after the effective date
20of division III of the bill.
21Division IV of the bill relates to the acquisition of real
22property by governmental entities by modifying criteria for
23dispossessing owners of property and authorizing payments
24to certain displaced persons operating a business or a farm
25operation.
26The bill amends Code section 6B.26 by adding business and
27farm operation to the list of types of property from which
28a landowner shall not be dispossessed under condemnation
29proceedings until the damages for the property have been
30finally determined and paid.
31The bill provides that, in addition to payments otherwise
32authorized by Code chapter 316, a displacing agency shall make
33a payment to a person who is displaced from the person’s place
34of business or farm operation if the displaced person owned the
35real property on which the business was conducted or where the
-10-1farm operation was located for at least one year prior to the
2date of initiation of negotiations for the acquisition of the
3real property and if the displaced person purchases comparable
4replacement real property to conduct the displaced person’s
5business or farm operation within 18 months following the date
6the displaced person vacates the real property or receives
7payment from the displacing agency under another provision of
8Code chapter 316, whichever is later. The bill establishes the
9methodology for determining the amount of the payment based on
10certain specified costs incurred by the displaced person in
11acquiring comparable real property.
12The bill also provides for payments to a displaced person or
13a person who is displaced from the person’s place of business
14or farm operation as an indirect result of the acquisition
15of real property by the displacing agency if the person in
16whole or in part owns the business or farm operation, the
17person leased the real property upon which the business was
18conducted or where the farm operation was located for at least
19one year prior to the date of initiation of negotiations for
20the acquisition of the real property, and the person leases or
21purchases comparable replacement real property to conduct the
22displaced person’s business or farm operation within 18 months
23of the date the person vacates the real property or receives
24payment from the displacing agency under another provision
25of Code chapter 316, whichever is later. Under the bill,
26the displacing agency determines whether such a displacement
27from leased property has occurred pursuant to rules adopted by
28the department of transportation. The bill establishes the
29methodology for determining the amount of the payment based on
30certain specified costs incurred by the person in acquiring or
31leasing comparable real property.
32Division IV takes effect upon enactment and applies to
33projects or condemnation proceedings pending or commenced on or
34after the effective date of division IV of the bill.
-11-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 of a
6petition pursuant to this chapter, an application for a permit
7to construct a pipeline involving the taking of property under
8eminent domain shall not be granted until the applicant has
9obtained through voluntary easements a minimum of seventy-five
10percent of the parcels needed for the construction, operation,
11and maintenance of the pipeline and stations or equipment for
12the proper operation of the pipeline. If seventy-five percent
13of the parcels needed has not been obtained through voluntary
14easements within two years following the date the application
15is filed with the board, the board shall reject the application
16and make a record of the rejection.
17 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this
18Act, being deemed of immediate importance, takes effect upon
19enactment.
20 Sec. 12. APPLICABILITY. This division of this Act applies
21to applications for permits filed but not yet acted upon on the
22effective date of this division of this Act and to applications
23for permits filed on or after the effective date of this
24division of this Act.
25DIVISION IV
26RELOCATION OF BUSINESSES AND FARM OPERATIONS
27 Sec. 13. Section 6B.26, subsection 1, Code 2017, is amended
28to read as follows:
291. A landowner shall not be dispossessed under condemnation
30proceedings of the landowner’s residence, dwelling house,
31outbuildings if the residence or dwelling house is also
32acquired, business, farm operation, orchard, or garden,
33until the damages thereto have been finally determined and
34paid. However, if the property described in this subsection
35is condemned for highway purposes by the state department of
-5-1transportation, the condemning authority may take possession
2of the property either after the damages have been finally
3determined and paid or one hundred eighty days after the
4compensation commission has determined and filed its award, in
5which event all of the appraisement of damages shall be paid
6to the property owner before the dispossession can take place.
7This subsection shall not apply to condemnation proceedings
8for drainage or levee improvements, or for public school
9purposes. For the purposes of this subsection, “outbuildings”
10means structures and improvements located in proximity to the
11landowner’s residence.
12 Sec. 14. NEW SECTION. 316.6A Replacement property payment
13to certain businesses and farm operations.
141. In addition to payments otherwise authorized by this
15chapter, the displacing agency shall make a payment to a
16displaced person who is displaced from the person’s place of
17business or farm operation if the displaced person owned the
18real property on which the business was conducted or where the
19farm operation was located for at least one year prior to the
20date of initiation of negotiations for the acquisition of the
21real property and if the displaced person purchases comparable
22replacement real property to conduct the displaced person’s
23business or farm operation within eighteen months following the
24date the displaced person vacates the real property or receives
25payment from the displacing agency under another provision of
26this chapter, whichever is later. The additional payment shall
27include the following amounts:
28a. An amount that when added to the acquisition cost of
29the real property acquired by the displacing agency, excluding
30any dwelling on the property, equals the reasonable cost of
31comparable real property for the displaced person’s business or
32farm operation, as determined by the displacing agency.
33b. An amount that compensates the displaced person for
34any increased interest costs and other debt service costs
35that the displaced person is required to pay for financing
-6-1the acquisition of comparable replacement real property. The
2amount shall be paid only if the real property acquired by
3the displacing agency was encumbered by a bona fide mortgage
4or land contract creating a valid lien on the real property,
5excluding the dwelling, or on the dwelling, for not less than
6one year immediately prior to the initiation of negotiations
7for the acquisition of the real property.
8c. The amount of actual, reasonable, and necessary expenses
9incurred by the displaced person for evidence of title,
10recording fees, and other costs incident to the purchase of
11comparable replacement real property, but not including prepaid
12expenses.
132. In addition to payments otherwise authorized by this
14chapter, the displacing agency shall make a payment to a
15displaced person or a person who is displaced from the person’s
16place of business or farm operation as an indirect result of
17the acquisition of real property by the displacing agency
18if the person in whole or in part owns the business or farm
19operation, the person leased the real property upon which the
20business was conducted or where the farm operation was located
21for at least one year prior to the date of initiation of
22negotiations for the acquisition of the real property, and the
23person leases or purchases comparable replacement real property
24to conduct the displaced person’s business or farm operation
25within eighteen months of the date the person vacates the
26real property or receives payment from the displacing agency
27under another provision of this chapter, whichever is later.
28The displacing agency shall determine whether a displacement
29described in this subsection has occurred. The additional
30payment shall include the following amounts:
31a. If the person leases comparable real property, the
32difference between the average monthly amount of the lease of
33the comparable real property and the average monthly amount
34of the lease for the real property acquired by the displacing
35agency, multiplied by forty-two.
-7- 1b. If the person purchases comparable real property to
2conduct the person’s business or operate the person’s farm, an
3amount calculated consistent with the provisions of subsection
41, paragraphs “a” and “c”.
53. All determinations to carry out this section shall be
6made in accordance with administrative rules adopted by the
7department.
8 Sec. 15. EFFECTIVE UPON ENACTMENT. This division of this
9Act, being deemed of immediate importance, takes effect upon
10enactment.
11 Sec. 16. APPLICABILITY. This division of this Act applies
12to programs or projects or condemnation proceedings pending or
13commenced on or after the effective date of this division of
14this Act.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill relates to the authority of acquiring agencies to
19use eminent domain and the procedures and compensation required
20for the use of eminent domain.
21Division I of the bill establishes a definition of “merchant
22line” for purposes of Code chapters 6A and 6B that is the
23same as defined in Code section 478.6A(1). The bill also
24adds merchant lines to the definition of “private development
25purposes”. Code section 6A.21 provides that the authority
26to condemn property for a public use, public purpose, or
27public improvement does not include the authority to condemn
28agricultural land for private development purposes unless the
29owner of the agricultural land consents to the condemnation.
30The bill also specifies under Code section 6A.21(2) that the
31limitation on the definition of public use, public purpose,
32or public improvement does apply to companies under the
33jurisdiction of the Iowa utilities board or to any other
34utility conferred the right by statute to condemn private
35property to the extent such purpose includes construction of
-8-1merchant lines.
2Division I of the bill takes effect upon enactment and
3applies to projects or condemnation proceedings pending or
4commenced on or after the effective date of division I of the
5bill.
6Division II of the bill provides that for condemnation
7of property located in a county with a population of greater
8than 9,250 but less than 9,300, according to the 2010 federal
9decennial census, an acquiring agency shall not have the
10authority to condemn private property for the development or
11creation of a lake as a surface drinking water source unless
12the United States army corps of engineers has performed an
13engineering review of the project and approved all required
14permits and authorizations for completion of the project. The
15bill also requires, at the expense of the acquiring agency, a
16review and analysis of the proposed development or creation of
17a lake by a certified hydrologist upon receipt by the acquiring
18agency of a petition signed by not less than 25 percent of
19the affected property owners. The certified hydrologist is
20selected by a committee comprised of all affected property
21owners and a representative of the acquiring agency.
22In addition to the analysis of surface drinking water
23capacity and the determination of the number of acres justified
24as necessary for a surface drinking water source by one
25or more licensed professional engineers, the bill provides
26that an additional independent review and analysis of such
27determinations shall be conducted, at the expense of the
28acquiring agency, by a licensed professional engineer upon
29receipt by the acquiring agency of a petition signed by not
30less than 25 percent of the affected property owners. The
31licensed professional engineer is selected by a committee
32comprised of all affected property owners and a representative
33of the acquiring agency.
34Division II of the bill takes effect upon enactment and
35applies to projects or condemnation proceedings pending or
-9-1commenced on or after the effective date of division II of the
2bill.
3Current Code chapter 479B allows the Iowa utilities
4board to grant permits for the construction of hazardous
5liquid pipelines and grant eminent domain rights to pipeline
6companies to construct such pipelines. Division III of the
7bill establishes new Code section 479B.9A to require that
8in addition to any other requirements for granting a permit
9pursuant to Code chapter 479B, an application for a permit
10involving the taking of property under eminent domain will not
11be granted until the applicant obtains at least 75 percent of
12the parcels needed for the project through voluntary easements.
13If 75 percent of the parcels needed has not been obtained
14through voluntary easements within two years of filing the
15application, the board must reject the application.
16Division III of the bill takes effect upon enactment and is
17applicable to applications for permits filed but not yet acted
18upon on the effective date of division III of the bill and to
19applications for permits filed on or after the effective date
20of division III of the bill.
21Division IV of the bill relates to the acquisition of real
22property by governmental entities by modifying criteria for
23dispossessing owners of property and authorizing payments
24to certain displaced persons operating a business or a farm
25operation.
26The bill amends Code section 6B.26 by adding business and
27farm operation to the list of types of property from which
28a landowner shall not be dispossessed under condemnation
29proceedings until the damages for the property have been
30finally determined and paid.
31The bill provides that, in addition to payments otherwise
32authorized by Code chapter 316, a displacing agency shall make
33a payment to a person who is displaced from the person’s place
34of business or farm operation if the displaced person owned the
35real property on which the business was conducted or where the
-10-1farm operation was located for at least one year prior to the
2date of initiation of negotiations for the acquisition of the
3real property and if the displaced person purchases comparable
4replacement real property to conduct the displaced person’s
5business or farm operation within 18 months following the date
6the displaced person vacates the real property or receives
7payment from the displacing agency under another provision of
8Code chapter 316, whichever is later. The bill establishes the
9methodology for determining the amount of the payment based on
10certain specified costs incurred by the displaced person in
11acquiring comparable real property.
12The bill also provides for payments to a displaced person or
13a person who is displaced from the person’s place of business
14or farm operation as an indirect result of the acquisition
15of real property by the displacing agency if the person in
16whole or in part owns the business or farm operation, the
17person leased the real property upon which the business was
18conducted or where the farm operation was located for at least
19one year prior to the date of initiation of negotiations for
20the acquisition of the real property, and the person leases or
21purchases comparable replacement real property to conduct the
22displaced person’s business or farm operation within 18 months
23of the date the person vacates the real property or receives
24payment from the displacing agency under another provision
25of Code chapter 316, whichever is later. Under the bill,
26the displacing agency determines whether such a displacement
27from leased property has occurred pursuant to rules adopted by
28the department of transportation. The bill establishes the
29methodology for determining the amount of the payment based on
30certain specified costs incurred by the person in acquiring or
31leasing comparable real property.
32Division IV takes effect upon enactment and applies to
33projects or condemnation proceedings pending or commenced on or
34after the effective date of division IV of the bill.
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