Bill Text: IA SF2139 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the disposition of unused property that was acquired by condemnation and including effective date and applicability provisions.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2016-02-11 - Subcommittee, Hogg, Schneider, and Sodders. S.J. 219. [SF2139 Detail]

Download: Iowa-2015-SF2139-Introduced.html

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Senate File 2139 - Introduced




                                 SENATE FILE       
                                 BY  SCHNEIDER

                                      A BILL FOR

  1 An Act relating to the disposition of unused property that was
  2    acquired by condemnation and including effective date and
  3    applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 6B.56, subsection 4, Code 2016, is
  1  2 amended by striking the subsection.
  1  3    Sec. 2.  Section 6B.56A, subsection 4, Code 2016, is amended
  1  4 by striking the subsection.
  1  5    Sec. 3.  Section 6B.59, Code 2016, is amended to read as
  1  6 follows:
  1  7    6B.59  Sale of acquired property == reimbursement to
  1  8 landowner.
  1  9    If an acquiring agency acquires property by condemnation,
  1 10 or by otherwise exercising the power of eminent domain, and
  1 11 that property is later sold by the acquiring agency for more
  1 12 than the acquisition price paid to the landowner, the acquiring
  1 13 agency shall pay to the landowner from whom the property was
  1 14 acquired the difference between the price at which it was
  1 15 acquired and the price at which it was sold by the acquiring
  1 16 agency less the cost of any improvements made to or benefiting
  1 17 the land by the acquiring agency. This section does not apply
  1 18 to property acquired by the state department of transportation.
  1 19    Sec. 4.  Section 306.22, subsection 1, Code 2016, is amended
  1 20 to read as follows:
  1 21    1.  When title to any tract of land has been or may be
  1 22 acquired for the construction or improvement of any highway by
  1 23 any means other than condemnation, and when in the judgment of
  1 24 the agency in control of the highway, the tract will not be
  1 25 used in connection with or for the improvement, maintenance,
  1 26 or use of the highway, the agency in control of the highway may
  1 27 sell the tract for cash.
  1 28    Sec. 5.  Section 306.22, subsection 2, unnumbered paragraph
  1 29 1, Code 2016, is amended to read as follows:
  1 30    The department may contract for the sale of any tract of land
  1 31 described in subsection 1 subject to the following terms and
  1 32 conditions:
  1 33    Sec. 6.  Section 306.23, subsections 1 and 2, Code 2016, are
  1 34 amended to read as follows:
  1 35    1.  The agency in control of a tract, parcel, or piece of
  2  1 land, or part thereof, which is unused right=of=way shall send
  2  2 by certified mail to the last known address of the present
  2  3 owner of adjacent land from which the tract, parcel, piece of
  2  4 land, or part thereof, was originally purchased or condemned
  2  5  for highway purposes, and to the person who owned the land at
  2  6 the time it was purchased or condemned for highway purposes,
  2  7 notice of the agency's intent to sell the land, the name and
  2  8 address of any other person to whom a notice was sent, and the
  2  9 fair market value of the real property based upon an appraisal
  2 10 by an independent appraiser.
  2 11    2.  The notice shall give an opportunity to the present owner
  2 12 of adjacent property and to the person who owned the land at
  2 13 the time it was purchased or condemned for highway purposes
  2 14 to be heard and make offers within sixty days of the date the
  2 15 notice is mailed for the tract, parcel, or piece of land to be
  2 16 sold. An offer which equals or exceeds in amount any other
  2 17 offer received and which equals or exceeds the fair market
  2 18 value of the property shall be given preference by the agency
  2 19 in control of the land. If no offers are received within sixty
  2 20 days or if no offer equals or exceeds the fair market value
  2 21 of the land, the agency shall transfer the land for a public
  2 22 purpose or proceed with the sale of the property.
  2 23    Sec. 7.  Section 306.23, Code 2016, is amended by adding the
  2 24 following new subsection:
  2 25    NEW SUBSECTION.  4.  This section shall not apply to the
  2 26 sale of unused property acquired by condemnation. The sale of
  2 27 unused property acquired by condemnation shall be subject to
  2 28 the requirements of chapter 6B.
  2 29    Sec. 8.  Section 331.361, subsection 2, paragraph c, Code
  2 30 2016, is amended to read as follows:
  2 31    c.  When unused highway right=of=way is not being sold or
  2 32 transferred to another governmental authority, the county shall
  2 33 comply with the requirements of chapter 6B and section 306.23.
  2 34    Sec. 9.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2 35 immediate importance, takes effect upon enactment.
  3  1    Sec. 10.  APPLICABILITY.  This Act applies to the disposition
  3  2 of condemned property occurring on or after the effective date
  3  3 of this Act.
  3  4                           EXPLANATION
  3  5 The inclusion of this explanation does not constitute agreement with
  3  6 the explanation's substance by the members of the general assembly.
  3  7    Code section 6B.56 provides that if all or a portion of
  3  8 real property condemned is not used for the purpose stated in
  3  9 the condemnation application and the acquiring agency seeks
  3 10 to dispose of the unused real property, the acquiring agency
  3 11 shall first offer the unused real property for sale to the
  3 12 prior owner of the condemned property. Additionally, Code
  3 13 section 6B.56A provides that when five years have elapsed since
  3 14 property was condemned and all or a portion of the property
  3 15 has not been used for the purpose stated in the condemnation
  3 16 application, and the acquiring agency has not taken action to
  3 17 dispose of the unused property pursuant to Code section 6B.56,
  3 18 the acquiring agency shall, within 60 days, adopt a resolution
  3 19 reaffirming the purpose for which the unused property will be
  3 20 used or offering the unused property for sale to the prior
  3 21 owner.
  3 22    Under current law, however, Code section 6B.56 does not
  3 23 apply to the sale of unused right=of=way property under Code
  3 24 chapter 306, and Code section 6B.56A does not apply to property
  3 25 acquired for street and highway projects undertaken by a state,
  3 26 county, or a city. This bill strikes both of those exclusions
  3 27 and amends the provisions of Code chapter 306 relating to the
  3 28 sale of unused property that was acquired for use in connection
  3 29 with the construction or improvement of a highway to provide
  3 30 that the sale of unused property acquired by condemnation shall
  3 31 be subject to the requirements of Code chapter 6B.
  3 32    The bill takes effect upon enactment and applies to the
  3 33 disposition of condemned property occurring on or after the
  3 34 effective date of the bill.
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