HSB 678 (LSB 5905YC (2) 83)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON TRANSPORTATION BILL BY CHAIRPERSON QUIRK)

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, the motor carrier transportation contract’s promisee from or against any liability for loss or damage resulting from the negligence or intentional acts or omissions of the promisee, or any agents, employees, servants, or independent contractors who are directly responsible to the 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.
   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, the motor carrier transportation contract’s promisee from or against any liability for loss or damage resulting from the negligence or intentional acts or omissions of the promisee, or any agents, employees, servants, or independent contractors who are directly responsible to the promisee.
   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.