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House File 603 - ReprintedA 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. 0a. “Aboveground merchant line” means
6“merchant line” as defined in section 478.6A, subsection 1,
7excluding those merchant lines that are underground.
8 Sec. 2. Section 6A.21, subsection 1, paragraph b, Code 2017,
9is amended to read as follows:
10b. “Private development purposes” means the construction of,
11or improvement related to, recreational trails, recreational
12development paid for primarily with private funds, aboveground
13merchant lines, housing and residential development, or
14commercial or industrial enterprise development.
15 Sec. 3. Section 6A.21, subsection 2, Code 2017, is amended
16to read as follows:
172. The limitation on the definition of public use,
18public purpose, or public improvement does not apply to the
19establishment, relocation, or improvement of a road pursuant
20to chapter 306, or to the establishment of a railway under the
21supervision of the department of transportation as provided in
22section 327C.2, or to an airport as defined in section 328.1,
23or to land acquired in order to replace or mitigate land used
24in a road project when federal law requires replacement or
25mitigation. This limitation also does not apply to utilities,
26persons, companies, or corporations under the jurisdiction of
27the Iowa utilities board in the department of commerce or to
28any other utility conferred the right by statute to condemn
29private property or to otherwise exercise the power of eminent
30domain, except to the extent such purpose includes construction
31of aboveground merchant lines.
32 Sec. 4. Section 6A.22, subsection 2, paragraph a,
33subparagraph (2), Code 2017, is amended to read as follows:
34(2) The acquisition of any interest in property necessary to
35the function of a public or private utility to the extent such
-1-1purpose does not include construction of aboveground merchant
2lines, common carrier, or airport or airport system.
3 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
4Act, being deemed of immediate importance, takes effect upon
5enactment.
6 Sec. 6. APPLICABILITY. This division of this Act applies to
7projects or condemnation proceedings commenced on or after the
8effective date of this division of this Act.
9DIVISION II
10LAKE DEVELOPMENT OR CREATION
11 Sec. 7. Section 6A.22, subsection 2, paragraph c,
12subparagraph (1), subparagraph division (c), subparagraph
13subdivision (i), Code 2017, is amended to read as follows:
14(i) For purposes of this subparagraph (1), “number of acres
15justified as necessary for a surface drinking water source”
16means according to guidelines of the United States natural
17resource conservation service and according to analyses of
18surface drinking water capacity needs conducted by one or more
19registered licensed professional engineers.
20 Sec. 8. Section 6A.22, subsection 2, paragraph c,
21subparagraph (1), Code 2017, is amended by adding the following
22new subparagraph division:
23 NEW SUBPARAGRAPH DIVISION. (d) For condemnation
24proceedings for which the application pursuant to section
256B.3 was filed after January 1, 2013, for condemnation of
26property located in a county with a population of greater
27than nine thousand two hundred fifty but less than nine
28thousand three hundred, according to the 2010 federal decennial
29census, which property sought to be condemned was in whole or
30in part described in a petition filed under section 6A.24,
31subsection 2, after January 1, 2013, but before January 1,
322014, regardless of whether the petitioner was determined by a
33court to not be a proper acquiring agency, the acquiring agency
34shall not have the authority to condemn private property for
35the development or creation of a lake as a surface drinking
-2-1water source unless all of the following have been satisfied:
2(i) Upon receipt by the acquiring agency of a petition,
3signed by not less than twenty-five percent of the affected
4property owners, the acquiring agency shall retain a certified
5hydrologist to conduct a review and analysis of the proposed
6development or creation of a lake. However, to be valid the
7petition must be filed not later than ninety days following
8the effective date of this division of this Act or ninety
9days after the filing date of the application under section
106B.3, whichever is later. The certified hydrologist shall be
11selected by a majority of a committee comprised of all affected
12property owners and a representative of the acquiring agency.
13The acquiring agency shall be responsible for paying the fees
14and expenses of the certified hydrologist. For purposes of
15this subparagraph (1), “certified hydrologist” means a person
16certified by the American institute of hydrology. If a valid
17petition is not filed within the prescribed ninety-day period,
18the requirements of this subparagraph subdivision (i) shall be
19deemed satisfied.
20(ii) Upon receipt by the acquiring agency of a petition
21signed by not less than twenty-five percent of the affected
22property owners, the acquiring agency shall retain a licensed
23professional engineer to conduct an additional independent
24review and analysis of the determinations made under
25subparagraph division (c), subparagraph subdivisions (i) and
26(ii). However, to be valid the petition must be filed not
27later than ninety days following the effective date of this
28division of this Act or ninety days after the filing date of
29the application under section 6B.3, whichever is later. The
30licensed professional engineer shall be selected by a majority
31of a committee comprised of all affected property owners and
32a representative of the acquiring agency. The acquiring
33agency shall be responsible for paying the fees and expenses
34of the licensed professional engineer. If a valid petition
35is not filed within the prescribed ninety-day period, the
-3-1requirements of this subparagraph subdivision (ii) shall be
2deemed satisfied.
3(iii) The United States army corps of engineers has
4performed an engineering review of the project and approved
5all required permits and authorizations for completion of the
6project.
7(iv) The acquiring agency has acquired at least eighty
8percent of the land area comprising the proposed water supply
9pool through voluntary acquisitions or voluntary negotiation
10and purchases.
11 Sec. 9. EFFECTIVE UPON ENACTMENT. This division of this
12Act, being deemed of immediate importance, takes effect upon
13enactment.
14 Sec. 10. APPLICABILITY. This division of this Act applies
15to projects or condemnation proceedings pending or commenced on
16or after the effective date of this division of this Act.
17DIVISION III
18RELOCATION OF BUSINESSES AND FARM OPERATIONS
19 Sec. 11. Section 6B.26, subsection 1, Code 2017, is amended
20to read as follows:
211. A landowner shall not be dispossessed under condemnation
22proceedings of the landowner’s residence, dwelling house,
23outbuildings if the residence or dwelling house is also
24acquired, business, farm operation, orchard, or garden,
25until the damages thereto have been finally determined and
26paid. However, if the property described in this subsection
27is condemned for highway purposes by the state department of
28transportation, the condemning authority may take possession
29of the property either after the damages have been finally
30determined and paid or one hundred eighty days after the
31compensation commission has determined and filed its award, in
32which event all of the appraisement of damages shall be paid
33to the property owner before the dispossession can take place.
34This subsection shall not apply to condemnation proceedings
35for drainage or levee improvements, or for public school
-4-1purposes. For the purposes of this subsection, “outbuildings”
2means structures and improvements located in proximity to the
3landowner’s residence.
4 Sec. 12. NEW SECTION. 316.6A Replacement property payment
5to certain businesses and farm operations.
61. In addition to payments otherwise authorized by this
7chapter, the displacing agency shall make a payment to a
8displaced person who is displaced from the person’s place of
9business or farm operation if the displaced person owned the
10real property on which the business was conducted or where the
11farm operation was located for at least one year prior to the
12date of initiation of negotiations for the acquisition of the
13real property and if the displaced person purchases comparable
14replacement real property to conduct the displaced person’s
15business or farm operation within eighteen months following the
16date the displaced person vacates the real property or receives
17payment from the displacing agency under another provision of
18this chapter, whichever is later. The additional payment shall
19include the following amounts:
20a. An amount that when added to the acquisition cost of
21the real property acquired by the displacing agency, excluding
22any dwelling on the property, equals the reasonable cost of
23comparable real property for the displaced person’s business
24or farm operation, as determined by an appraiser selected by
25the displacing agency. In the absence of available replacement
26real property, the amount of the payment under this paragraph
27shall be the difference between the acquisition cost of the
28real property acquired by the displacing agency and the sum
29of the estimated cost of comparable land and the estimated
30cost of constructing comparable improvements on the land
31necessary for the displaced person to conduct the person’s
32business or farm operation. If the displaced person disagrees
33with the amount determined by the appraiser selected by the
34displacing agency, the displaced person may, at the expense
35of the displacing agency, select an independent appraiser to
-5-1determine the amounts required under this paragraph. If the
2amount determined by the appraiser selected by the displaced
3person and the amount determined by the appraiser selected by
4the displacing agency are not equal and the displacing agency
5and the displaced person cannot agree on an appropriate amount,
6the amount under this paragraph shall be the average of such
7amounts determined by the appraisers.
8b. An amount that compensates the displaced person for
9any increased interest costs and other debt service costs
10that the displaced person is required to pay for financing
11the acquisition of comparable replacement real property. The
12amount shall be paid only if the real property acquired by
13the displacing agency was encumbered by a bona fide mortgage
14or land contract creating a valid lien on the real property,
15excluding the dwelling, or on the dwelling, for not less than
16one year immediately prior to the initiation of negotiations
17for the acquisition of the real property.
18c. The amount of actual, reasonable, and necessary expenses
19incurred by the displaced person for evidence of title,
20recording fees, and other costs incident to the purchase of
21comparable replacement real property, but not including prepaid
22expenses.
232. In addition to payments otherwise authorized by this
24chapter, the displacing agency shall make a payment to a
25displaced person or a person who is displaced from the person’s
26place of business or farm operation as an indirect result of
27the acquisition of real property by the displacing agency
28if the person in whole or in part owns the business or farm
29operation, the person leased the real property upon which the
30business was conducted or where the farm operation was located
31for at least one year prior to the date of initiation of
32negotiations for the acquisition of the real property, and the
33person leases or purchases comparable replacement real property
34to conduct the displaced person’s business or farm operation
35within eighteen months of the date the person vacates the
-6-1real property or receives payment from the displacing agency
2under another provision of this chapter, whichever is later.
3The displacing agency shall determine whether a displacement
4described in this subsection has occurred. The additional
5payment shall include the following amounts:
6a. If the person leases comparable real property, the
7difference between the average monthly amount of the lease of
8the comparable real property and the average monthly amount
9of the lease for the real property acquired by the displacing
10agency, multiplied by forty-two.
11b. If the person purchases comparable real property to
12conduct the person’s business or operate the person’s farm, an
13amount calculated consistent with the provisions of subsection
141, paragraphs “a” and “c”.
153. All determinations to carry out this section shall be
16made in accordance with administrative rules adopted by the
17department.
18 Sec. 13. EFFECTIVE UPON ENACTMENT. This division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 14. APPLICABILITY. This division of this Act applies
22to programs or projects or condemnation proceedings pending or
23commenced on or after the effective date of this division of
24this Act.
md/sc/rn/md
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. 0a. “Aboveground merchant line” means
6“merchant line” as defined in section 478.6A, subsection 1,
7excluding those merchant lines that are underground.
8 Sec. 2. Section 6A.21, subsection 1, paragraph b, Code 2017,
9is amended to read as follows:
10b. “Private development purposes” means the construction of,
11or improvement related to, recreational trails, recreational
12development paid for primarily with private funds, aboveground
13merchant lines, housing and residential development, or
14commercial or industrial enterprise development.
15 Sec. 3. Section 6A.21, subsection 2, Code 2017, is amended
16to read as follows:
172. The limitation on the definition of public use,
18public purpose, or public improvement does not apply to the
19establishment, relocation, or improvement of a road pursuant
20to chapter 306, or to the establishment of a railway under the
21supervision of the department of transportation as provided in
22section 327C.2, or to an airport as defined in section 328.1,
23or to land acquired in order to replace or mitigate land used
24in a road project when federal law requires replacement or
25mitigation. This limitation also does not apply to utilities,
26persons, companies, or corporations under the jurisdiction of
27the Iowa utilities board in the department of commerce or to
28any other utility conferred the right by statute to condemn
29private property or to otherwise exercise the power of eminent
30domain, except to the extent such purpose includes construction
31of aboveground merchant lines.
32 Sec. 4. Section 6A.22, subsection 2, paragraph a,
33subparagraph (2), Code 2017, is amended to read as follows:
34(2) The acquisition of any interest in property necessary to
35the function of a public or private utility to the extent such
-1-1purpose does not include construction of aboveground merchant
2lines, common carrier, or airport or airport system.
3 Sec. 5. EFFECTIVE UPON ENACTMENT. This division of this
4Act, being deemed of immediate importance, takes effect upon
5enactment.
6 Sec. 6. APPLICABILITY. This division of this Act applies to
7projects or condemnation proceedings commenced on or after the
8effective date of this division of this Act.
9DIVISION II
10LAKE DEVELOPMENT OR CREATION
11 Sec. 7. Section 6A.22, subsection 2, paragraph c,
12subparagraph (1), subparagraph division (c), subparagraph
13subdivision (i), Code 2017, is amended to read as follows:
14(i) For purposes of this subparagraph (1), “number of acres
15justified as necessary for a surface drinking water source”
16means according to guidelines of the United States natural
17resource conservation service and according to analyses of
18surface drinking water capacity needs conducted by one or more
19registered licensed professional engineers.
20 Sec. 8. Section 6A.22, subsection 2, paragraph c,
21subparagraph (1), Code 2017, is amended by adding the following
22new subparagraph division:
23 NEW SUBPARAGRAPH DIVISION. (d) For condemnation
24proceedings for which the application pursuant to section
256B.3 was filed after January 1, 2013, for condemnation of
26property located in a county with a population of greater
27than nine thousand two hundred fifty but less than nine
28thousand three hundred, according to the 2010 federal decennial
29census, which property sought to be condemned was in whole or
30in part described in a petition filed under section 6A.24,
31subsection 2, after January 1, 2013, but before January 1,
322014, regardless of whether the petitioner was determined by a
33court to not be a proper acquiring agency, the acquiring agency
34shall not have the authority to condemn private property for
35the development or creation of a lake as a surface drinking
-2-1water source unless all of the following have been satisfied:
2(i) Upon receipt by the acquiring agency of a petition,
3signed by not less than twenty-five percent of the affected
4property owners, the acquiring agency shall retain a certified
5hydrologist to conduct a review and analysis of the proposed
6development or creation of a lake. However, to be valid the
7petition must be filed not later than ninety days following
8the effective date of this division of this Act or ninety
9days after the filing date of the application under section
106B.3, whichever is later. The certified hydrologist shall be
11selected by a majority of a committee comprised of all affected
12property owners and a representative of the acquiring agency.
13The acquiring agency shall be responsible for paying the fees
14and expenses of the certified hydrologist. For purposes of
15this subparagraph (1), “certified hydrologist” means a person
16certified by the American institute of hydrology. If a valid
17petition is not filed within the prescribed ninety-day period,
18the requirements of this subparagraph subdivision (i) shall be
19deemed satisfied.
20(ii) Upon receipt by the acquiring agency of a petition
21signed by not less than twenty-five percent of the affected
22property owners, the acquiring agency shall retain a licensed
23professional engineer to conduct an additional independent
24review and analysis of the determinations made under
25subparagraph division (c), subparagraph subdivisions (i) and
26(ii). However, to be valid the petition must be filed not
27later than ninety days following the effective date of this
28division of this Act or ninety days after the filing date of
29the application under section 6B.3, whichever is later. The
30licensed professional engineer shall be selected by a majority
31of a committee comprised of all affected property owners and
32a representative of the acquiring agency. The acquiring
33agency shall be responsible for paying the fees and expenses
34of the licensed professional engineer. If a valid petition
35is not filed within the prescribed ninety-day period, the
-3-1requirements of this subparagraph subdivision (ii) shall be
2deemed satisfied.
3(iii) The United States army corps of engineers has
4performed an engineering review of the project and approved
5all required permits and authorizations for completion of the
6project.
7(iv) The acquiring agency has acquired at least eighty
8percent of the land area comprising the proposed water supply
9pool through voluntary acquisitions or voluntary negotiation
10and purchases.
11 Sec. 9. EFFECTIVE UPON ENACTMENT. This division of this
12Act, being deemed of immediate importance, takes effect upon
13enactment.
14 Sec. 10. APPLICABILITY. This division of this Act applies
15to projects or condemnation proceedings pending or commenced on
16or after the effective date of this division of this Act.
17DIVISION III
18RELOCATION OF BUSINESSES AND FARM OPERATIONS
19 Sec. 11. Section 6B.26, subsection 1, Code 2017, is amended
20to read as follows:
211. A landowner shall not be dispossessed under condemnation
22proceedings of the landowner’s residence, dwelling house,
23outbuildings if the residence or dwelling house is also
24acquired, business, farm operation, orchard, or garden,
25until the damages thereto have been finally determined and
26paid. However, if the property described in this subsection
27is condemned for highway purposes by the state department of
28transportation, the condemning authority may take possession
29of the property either after the damages have been finally
30determined and paid or one hundred eighty days after the
31compensation commission has determined and filed its award, in
32which event all of the appraisement of damages shall be paid
33to the property owner before the dispossession can take place.
34This subsection shall not apply to condemnation proceedings
35for drainage or levee improvements, or for public school
-4-1purposes. For the purposes of this subsection, “outbuildings”
2means structures and improvements located in proximity to the
3landowner’s residence.
4 Sec. 12. NEW SECTION. 316.6A Replacement property payment
5to certain businesses and farm operations.
61. In addition to payments otherwise authorized by this
7chapter, the displacing agency shall make a payment to a
8displaced person who is displaced from the person’s place of
9business or farm operation if the displaced person owned the
10real property on which the business was conducted or where the
11farm operation was located for at least one year prior to the
12date of initiation of negotiations for the acquisition of the
13real property and if the displaced person purchases comparable
14replacement real property to conduct the displaced person’s
15business or farm operation within eighteen months following the
16date the displaced person vacates the real property or receives
17payment from the displacing agency under another provision of
18this chapter, whichever is later. The additional payment shall
19include the following amounts:
20a. An amount that when added to the acquisition cost of
21the real property acquired by the displacing agency, excluding
22any dwelling on the property, equals the reasonable cost of
23comparable real property for the displaced person’s business
24or farm operation, as determined by an appraiser selected by
25the displacing agency. In the absence of available replacement
26real property, the amount of the payment under this paragraph
27shall be the difference between the acquisition cost of the
28real property acquired by the displacing agency and the sum
29of the estimated cost of comparable land and the estimated
30cost of constructing comparable improvements on the land
31necessary for the displaced person to conduct the person’s
32business or farm operation. If the displaced person disagrees
33with the amount determined by the appraiser selected by the
34displacing agency, the displaced person may, at the expense
35of the displacing agency, select an independent appraiser to
-5-1determine the amounts required under this paragraph. If the
2amount determined by the appraiser selected by the displaced
3person and the amount determined by the appraiser selected by
4the displacing agency are not equal and the displacing agency
5and the displaced person cannot agree on an appropriate amount,
6the amount under this paragraph shall be the average of such
7amounts determined by the appraisers.
8b. An amount that compensates the displaced person for
9any increased interest costs and other debt service costs
10that the displaced person is required to pay for financing
11the acquisition of comparable replacement real property. The
12amount shall be paid only if the real property acquired by
13the displacing agency was encumbered by a bona fide mortgage
14or land contract creating a valid lien on the real property,
15excluding the dwelling, or on the dwelling, for not less than
16one year immediately prior to the initiation of negotiations
17for the acquisition of the real property.
18c. The amount of actual, reasonable, and necessary expenses
19incurred by the displaced person for evidence of title,
20recording fees, and other costs incident to the purchase of
21comparable replacement real property, but not including prepaid
22expenses.
232. In addition to payments otherwise authorized by this
24chapter, the displacing agency shall make a payment to a
25displaced person or a person who is displaced from the person’s
26place of business or farm operation as an indirect result of
27the acquisition of real property by the displacing agency
28if the person in whole or in part owns the business or farm
29operation, the person leased the real property upon which the
30business was conducted or where the farm operation was located
31for at least one year prior to the date of initiation of
32negotiations for the acquisition of the real property, and the
33person leases or purchases comparable replacement real property
34to conduct the displaced person’s business or farm operation
35within eighteen months of the date the person vacates the
-6-1real property or receives payment from the displacing agency
2under another provision of this chapter, whichever is later.
3The displacing agency shall determine whether a displacement
4described in this subsection has occurred. The additional
5payment shall include the following amounts:
6a. If the person leases comparable real property, the
7difference between the average monthly amount of the lease of
8the comparable real property and the average monthly amount
9of the lease for the real property acquired by the displacing
10agency, multiplied by forty-two.
11b. If the person purchases comparable real property to
12conduct the person’s business or operate the person’s farm, an
13amount calculated consistent with the provisions of subsection
141, paragraphs “a” and “c”.
153. All determinations to carry out this section shall be
16made in accordance with administrative rules adopted by the
17department.
18 Sec. 13. EFFECTIVE UPON ENACTMENT. This division of this
19Act, being deemed of immediate importance, takes effect upon
20enactment.
21 Sec. 14. APPLICABILITY. This division of this Act applies
22to programs or projects or condemnation proceedings pending or
23commenced on or after the effective date of this division of
24this Act.
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