Opinion ID: 1708846
Heading Depth: 1
Heading Rank: 3

Heading: State Involvement as Corporate Shareholder.

Text: Finally, we consider appellants' claim that chapter 307B is constitutionally infirm because it permits IRFA to become a shareholder in a corporation contrary to the proscriptions contained in article VIII, section 3 of the Iowa Constitution. We find nothing contained in chapter 307B which expressly authorizes IRFA to assume such shareholder status. Appellants argue that such authority is to be found in section 307B.7(18) which permits IRFA to own a railway facility in partnership, or in any other association with any other person. We believe that this grant of authority in section 307B.7(18) is designed to give IRFA some flexibility in entering into various types of arrangements with shippers, railways, and other parties in order to restore needed rail service. We will not, however, in the absence of evidence to the contrary, presume that the IRFA governing board will invoke such authority in order to offend against a specific constitutional prohibition. We have considered all issues and arguments advanced by appellants whether or not specifically discussed in this opinion. We conclude that the district court properly rejected those challenges lodged by appellants to chapter 307B and various specific provisions thereof. The declaratory judgment of the district court is affirmed. AFFIRMED.