HF 2498 (LSB 5905HV (2) 83)

HOUSE FILE 2498

BY  COMMITTEE ON TRANSPORTATION

(SUCCESSOR TO HSB 678)

A BILL FOR

An Act relating to the contents of certain motor carrier transportation contracts by declaring certain indemnity provisions to be unlawful and void.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  325B.1  Contents of motor carrier transportation contracts —— certain provisions void.
   1.  As used in this section:
   a.  “Motor carrier” means the same as defined in section 325A.1.
   b.  “Motor carrier transportation contract” means a contract, agreement, or understanding related to any of the following:
   (1)  The transportation for hire of property by a motor carrier.
   (2)  The entrance upon property by a motor carrier for the purpose of loading, unloading, or transporting property for transportation for hire.
   (3)  A service incidental to the activities described in subparagraph (1) or (2), including but not limited to the storage of property.
   c.  “Transportation for hire” means the same as defined in section 325A.1.
   2.  Notwithstanding any provision of law to the contrary, a motor carrier transportation contract, whether express or implied, shall not contain a provision, clause, covenant, or agreement that purports to indemnify, defend, or hold harmless, or has the effect of indemnifying, defending, or holding harmless, a promisee from or against any liability for injury, death, loss, or damage resulting from the negligence or intentional acts or omissions of that promisee, or any agents, employees, servants, or independent contractors who are directly responsible to that promisee. This prohibition applies to any provisions or agreements collateral to or affecting a motor carrier transportation contract. Any such provisions, clauses, covenants, or agreements are void and unenforceable. If any provision, clause, covenant, or agreement is deemed void and unenforceable under this section, the remaining provisions of the motor carrier transportation contract are severable and shall be enforceable unless otherwise prohibited by law.
   3.  This section does not apply to the uniform intermodal interchange and facilities access agreement administered by the intermodal association of north America, as amended, or other contracts or agreements providing for the interchange, use, or possession of intermodal chassis or other intermodal equipment.
   4.  This section applies to motor carrier transportation contracts entered into, extended, or renewed on or after July 1, 2010.
EXPLANATION
   This bill creates new Code section 325B.1 relating to the contents of certain motor carrier transportation contracts, as defined in the bill. The bill prohibits a motor carrier transportation contract, whether express or implied, from containing a provision, clause, covenant, or agreement that purports to indemnify, defend, or hold harmless, or has the effect of indemnifying, defending, or holding harmless, a promisee from or against any liability for injury, death, loss, or damage resulting from the negligence or intentional acts or omissions of that promisee, or any agents, employees, servants, or independent contractors who are directly responsible to that promisee.
   The bill provides that if any provision, clause, covenant, or agreement is deemed void and unenforceable under the bill, the remaining provisions of the motor carrier transportation contract are severable and enforceable unless otherwise prohibited by law.
   The bill does not apply to the uniform intermodal interchange and facilities access agreement administered by the intermodal association of north America, as that agreement may be amended, or other contracts or agreements providing for the interchange, use, or possession of intermodal chassis or other intermodal equipment.
   The bill applies to motor carrier transportation contracts entered into, extended, or renewed on or after July 1, 2010.