Bill Text: IA SF2425 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to civil liability and associated insurance requirements of alcoholic beverage licensees or permittees who also sell or serve consumable hemp products.(Formerly SSB 3195.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-04-04 - Committee report, approving bill. S.J. 750. [SF2425 Detail]
Download: Iowa-2023-SF2425-Introduced.html
Senate
File
2425
-
Introduced
SENATE
FILE
2425
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3195)
A
BILL
FOR
An
Act
relating
to
civil
liability
and
associated
insurance
1
requirements
of
alcoholic
beverage
licensees
or
permittees
2
who
also
sell
or
serve
consumable
hemp
products.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
123.3,
subsection
15,
Code
2024,
is
1
amended
to
read
as
follows:
2
15.
“Completed
application”
means
an
application
where
all
3
necessary
fees
have
been
paid
in
full,
any
required
bonds
have
4
been
submitted,
the
applicant
has
provided
all
information
5
requested
by
the
department,
and
the
application
meets
the
6
requirements
of
section
123.92,
subsection
2
,
or
section
7
123.92A,
subsection
2,
if
applicable.
8
Sec.
2.
Section
123.3,
Code
2024,
is
amended
by
adding
the
9
following
new
subsection:
10
NEW
SUBSECTION
.
15A.
“Consumable
hemp
product”
means
the
11
same
as
defined
in
section
204.2.
12
Sec.
3.
Section
123.10,
subsection
14,
Code
2024,
is
amended
13
to
read
as
follows:
14
14.
Prescribing
the
uniform
fee
to
be
assessed
against
15
a
retail
alcohol
licensee,
except
a
class
“B”,
special
class
16
“B”,
or
class
“E”
retail
alcohol
licensee,
to
cover
the
17
administrative
costs
incurred
by
the
department
resulting
from
18
the
failure
of
the
licensee
to
maintain
dramshop
liability
19
insurance
coverage
pursuant
to
section
123.92,
subsection
2
,
20
paragraph
“a”
,
or
dramshop
hemp
liability
insurance
coverage
21
pursuant
to
section
123.92A,
subsection
2,
paragraph
“a”
.
22
Sec.
4.
NEW
SECTION
.
123.92A
Civil
liability
for
dispensing
23
or
sale
and
service
of
any
consumable
hemp
product
(dramshop
24
hemp)
——
liability
insurance.
25
1.
a.
Subject
to
the
limitation
amount
specified
in
26
paragraph
“c”
,
if
applicable,
any
third
party
who
is
not
the
27
intoxicated
person
who
caused
the
injury
at
issue
and
who
28
is
injured
in
person
or
property
or
means
of
support
by
an
29
intoxicated
person
or
resulting
from
the
intoxication
of
a
30
person,
has
a
right
of
action
for
damages
actually
sustained,
31
severally
or
jointly
against
any
licensee
or
permittee,
whether
32
or
not
the
license
or
permit
was
issued
by
the
department
or
by
33
the
licensing
authority
of
any
other
state,
who
sold
and
served
34
any
consumable
hemp
product,
if
the
licensee
or
permittee
is
35
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also
registered
to
sell
consumable
hemp
products
under
section
1
204.7
or
by
another
jurisdiction,
directly
to
the
intoxicated
2
person,
provided
that
the
person
was
visibly
intoxicated
at
the
3
time
of
the
sale
or
service.
4
b.
If
the
injury
was
proximately
caused
by
an
intoxicated
5
person,
a
permittee
or
licensee
may
establish
as
an
affirmative
6
defense
that
the
intoxication
did
not
contribute
to
the
7
injurious
action
of
the
person.
8
c.
In
addition
to
the
amount
recoverable
under
section
9
123.92,
subsection
1,
paragraph
“c”
,
the
total
amount
10
recoverable
by
each
plaintiff
in
any
civil
action
for
11
noneconomic
damages
for
personal
injury,
whether
in
tort,
12
contract,
or
otherwise,
against
a
licensee
or
permittee
who
13
sold
and
served
any
consumable
hemp
product
giving
rise
to
such
14
civil
action,
regardless
of
whether
the
licensee
or
permittee
15
also
sold
and
served
any
alcoholic
beverage
giving
rise
to
such
16
civil
action,
shall
be
limited
to
five
hundred
thousand
dollars
17
for
any
injury
or
death
of
a
person,
unless
the
jury
determines
18
that
there
is
a
substantial
or
permanent
loss
or
impairment
of
19
a
bodily
function,
substantial
disfigurement,
or
death,
which
20
warrants
a
finding
that
imposition
of
such
a
limitation
would
21
deprive
the
plaintiff
of
just
compensation
for
the
injuries
22
sustained.
23
2.
a.
Every
retail
alcohol
licensee,
except
a
class
“B”,
24
special
class
“B”,
or
class
“E”
retail
alcohol
licensee,
shall
25
furnish
proof
of
financial
responsibility
under
this
section
26
by
the
existence
of
a
liability
insurance
policy
in
an
amount
27
determined
by
the
department.
If
an
insurer
provides
dramshop
28
hemp
liability
insurance
at
a
new
location
to
a
licensee
29
or
permittee
who
has
a
positive
loss
experience
at
other
30
locations
for
which
such
insurance
is
provided
by
the
insurer,
31
and
the
insurer
bases
premium
rates
at
the
new
location
on
32
the
negative
loss
history
of
the
previous
licensee
at
that
33
location,
the
insurer
shall
examine
and
consider
adjusting
the
34
premium
for
the
new
location
not
less
than
thirty
months
after
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the
insurance
is
issued,
based
on
the
loss
experience
of
the
1
licensee
at
that
location
during
that
thirty-month
period
of
2
time.
3
b.
A
dramshop
hemp
liability
insurance
policy
may
be
written
4
on
an
aggregate
limit
basis.
5
c.
The
purpose
of
dramshop
hemp
liability
insurance
is
to
6
provide
protection
for
members
of
the
public
who
experience
7
damages
as
a
result
of
licensees
serving
patrons
any
consumable
8
hemp
product
to
a
point
that
reaches
or
exceeds
the
standard
9
set
forth
in
law
for
liability.
Minimum
coverage
requirements
10
for
such
insurance
are
not
for
the
purpose
of
making
the
11
insurance
affordable
for
all
licensees
regardless
of
claims
12
experience.
A
dramshop
hemp
liability
insurance
policy
13
obtained
by
a
licensee
shall
meet
the
minimum
insurance
14
coverage
requirements
as
determined
by
the
department
and
is
a
15
mandatory
condition
for
holding
a
license.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
civil
liability
and
associated
20
insurance
requirements
of
alcoholic
beverage
licensees
or
21
permittees
who
also
sell
or
serve
consumable
hemp
products.
22
Under
current
law,
Code
section
123.92
provides
for
civil
23
liability
and
insurance
requirements
for
alcoholic
beverage
24
licensees
and
permittees
who
sell
and
serve
alcoholic
beverages
25
to
a
visibly
intoxicated
person
(dramshop
Act).
The
bill
26
establishes
similar
dramshop
provisions
applicable
to
a
27
licensee
or
permittee
who
sells
or
serves
any
consumable
hemp
28
product
(CHP),
if
the
licensee
or
permittee
is
also
registered
29
to
sell
CHPs
in
Iowa
(Code
section
204.7)
or
by
another
30
jurisdiction.
31
The
total
amount
recoverable
by
each
plaintiff
in
any
civil
32
action
for
noneconomic
damages
for
personal
injury
against
a
33
licensee
or
permittee
who
sold
and
served
any
CHP
giving
rise
34
to
such
civil
action
is
limited
to
$500,000
for
any
injury
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or
death
of
a
person,
unless
the
jury
determines
that
there
1
is
a
substantial
or
permanent
loss
or
impairment
of
a
bodily
2
function,
substantial
disfigurement,
or
death,
which
warrants
3
a
finding
that
imposition
of
such
a
limitation
would
deprive
4
the
plaintiff
of
just
compensation
for
the
injuries
sustained.
5
This
is
in
addition
to
any
amount
recoverable
under
Code
6
section
123.92
based
on
sale
or
service
of
alcoholic
beverages
7
($250,000,
with
similar
exceptions),
and
applies
regardless
8
of
whether
the
licensee
or
permittee
also
sold
or
served
an
9
alcoholic
beverage.
10
The
bill
makes
conforming
changes
to
Code
section
123.3(15)
11
and
Code
section
123.10(14).
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