House File 491 - Introduced HOUSE FILE 491 BY GOLDING , THOMPSON , HAYES , HENDERSON , and ANDREWS A BILL FOR An Act concerning common carriers and including effective date 1 and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2748YH (3) 91 sc/js
H.F. 491 Section 1. Section 6A.21, subsection 1, Code 2025, is 1 amended to read as follows: 2 1. Except as otherwise provided, for purposes of this 3 chapter and chapter 6B : 4 a. Aboveground merchant line means merchant line as 5 defined in section 478.6A, subsection 1 , excluding those 6 merchant lines that are underground. 7 b. Agricultural land means real property owned by a person 8 in tracts of ten acres or more and not laid off into lots of 9 less than ten acres or divided by streets and alleys into 10 parcels of less than ten acres, and that has been used for 11 the production of agricultural commodities during three out 12 of the past five years. Such use of property includes, but 13 is not limited to, the raising, harvesting, handling, drying, 14 or storage of crops used for feed, food, seed, or fiber; the 15 care or feeding of livestock; the handling or transportation 16 of crops or livestock; the storage, treatment, or disposal 17 of livestock manure; and the application of fertilizers, 18 soil conditioners, pesticides, and herbicides on crops. 19 Agricultural land includes land on which is located farm 20 residences or outbuildings used for agricultural purposes and 21 land on which is located facilities, structures, or equipment 22 for agricultural purposes. Agricultural land includes 23 land taken out of agricultural production for purposes of 24 environmental protection or preservation. 25 c. Commodity means a product that is used by an individual 26 consumer or is used to produce a product used by an individual 27 consumer. 28 d. Common carrier means a commercial enterprise that holds 29 itself out as ready to engage in the transportation of goods 30 or passengers for hire, as a public employment, and not as a 31 casual occupation, and that undertakes to carry for all persons 32 indifferently, within the limits of the enterprises capacity 33 and the sphere of business required of it. For a carrier 34 engaged in the transportation of a hazardous liquid to qualify 35 -1- LSB 2748YH (3) 91 sc/js 1/ 4
H.F. 491 as a common carrier, the carrier must establish by clear and 1 convincing evidence that it will transport a commodity for 2 one or more shippers not affiliated with the carrier who 3 will either retain ownership of the commodity or sell the 4 commodity to a party other than the carrier. A common carrier 5 determination by the federal energy regulatory commission shall 6 be controlling for purposes of this paragraph. 7 c. e. Private development purposes means the 8 construction of, or improvement related to, recreational 9 trails, recreational development paid for primarily with 10 private funds, aboveground merchant lines, housing and 11 residential development, or commercial or industrial enterprise 12 development. 13 d. f. Public use or public purpose or public 14 improvement does not include the authority to condemn 15 agricultural land for private development purposes unless the 16 owner of the agricultural land consents to the condemnation. 17 Sec. 2. Section 6A.24, Code 2025, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 4. Notwithstanding subsection 3, an 20 acquiring agency proposing to acquire property by eminent 21 domain pursuant to a grant under chapter 479B shall have the 22 burden of establishing by clear and convincing evidence that 23 the proposed use meets the definition of a public use, public 24 purpose, or public improvement. 25 Sec. 3. Section 479B.16, subsection 1, Code 2025, is amended 26 to read as follows: 27 1. A pipeline company granted a pipeline permit shall , 28 subject to subsection 4, be vested with the right of eminent 29 domain, to the extent necessary and as prescribed and approved 30 by the commission, not exceeding seventy-five feet in width for 31 right-of-way and not exceeding one acre in any one location in 32 addition to right-of-way for the location of pumps, pressure 33 apparatus, or other stations or equipment necessary to the 34 proper operation of its pipeline. The commission may grant 35 -2- LSB 2748YH (3) 91 sc/js 2/ 4
H.F. 491 additional eminent domain rights where when the pipeline 1 company has presented sufficient evidence to adequately 2 demonstrate that a greater area is required for the proper 3 construction, operation, and maintenance of the pipeline or for 4 the location of pumps, pressure apparatus, or other stations or 5 equipment necessary to the proper operation of its pipeline. 6 Sec. 4. Section 479B.16, Code 2025, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 4. A pipeline company granted a pipeline 9 permit shall not be vested with the right of eminent domain 10 unless the pipeline company is a common carrier, as defined in 11 section 6A.21. 12 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 13 importance, takes effect upon enactment. 14 Sec. 6. APPLICABILITY. This Act applies to condemnation 15 proceedings for which the application filed under section 6B.3 16 is filed on or after the effective date of this Act. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanations substance by the members of the general assembly. 20 This bill defines a common carrier for purposes of Code 21 chapters 6A (eminent domain law) and 6B (procedure under 22 eminent domain) as a commercial enterprise that transports 23 goods or passengers for hire as a public employment. A carrier 24 that transports hazardous liquid only qualifies as a common 25 carrier if the carrier transports a commodity, defined as a 26 product that is used by an individual consumer or used to 27 produce a product used by an individual consumer, for one or 28 more shippers that are unaffiliated with the carrier and will 29 not sell the hazardous liquid to the carrier. The federal 30 energy regulatory commissions determination on whether a 31 carrier qualifies as a common carrier is controlling. 32 Under current law, when a property owner or an acquiring 33 agency seeks judicial review of an exercise of eminent domain, 34 an acquiring agency must prove by a preponderance of the 35 -3- LSB 2748YH (3) 91 sc/js 3/ 4
H.F. 491 evidence that the definition of public use, public purpose, or 1 public improvement is met. The bill provides that an acquiring 2 agency seeking to use eminent domain pursuant to a grant under 3 Code chapter 479B (hazardous liquid pipelines and storage 4 facilities) must prove by clear and convincing evidence that 5 the exercise of eminent domain meets the definition of a public 6 use, public purpose, or public improvement. 7 The bill prohibits a pipeline company from being vested 8 with the right of eminent domain unless the pipeline company 9 qualifies as a common carrier. 10 The bill takes effect upon enactment and applies to 11 condemnation proceedings for which the application is filed on 12 or after the effective date of the bill. 13 -4- LSB 2748YH (3) 91 sc/js 4/ 4