A. Property that may be taken under this article includes property possessed by the United States government unless:

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1. The property was acquired by the federal government with the consent of the legislature pursuant to article I, section 8, clause 17, Constitution of the United States.

2. The property consists of Indian lands owned or held by a federally recognized Indian tribe, nation, band or community as reservation lands, allotment lands or sovereign or proprietary lands or in any other capacity.

B. This state shall be the plaintiff described in this article in an action to condemn property described in subsection A. This state is not responsible for legal actions filed by other persons or entities.

C. The attorney general shall file eminent domain actions with the consent of the United States government on property described in subsection A:

1. That facilitate this state’s ability to manage, or provide access to, or increase the profitability of, the lands owned or held in trust by this state for the benefit of public schools and other institutions of this state consistent with this state’s fiduciary responsibilities toward the beneficiaries of the trust lands.

2. For a public use that increases the ability of this state to generate revenue.

D. This section does not apply with respect to:

1. Property held by the United States for the benefit, including water rights, of a federal reclamation project or managed by a political subdivision of this state, or a special taxing district organized under title 48.

2. Property on which permanent improvements are constructed or that is legally encumbered.