Iowa-2023-SSB3013-Introduced

S.F. _____ Section 1. Section 613.18, Code 2024, is amended to read as 1 follows: 2 613.18 Limitation on products liability of nonmanufacturers. 3 1. A person who is not the assembler, designer, or actual 4 manufacturer, and who wholesales, retails, distributes, or 5 otherwise sells , leases, or rents a product is: 6 a. Immune from any suit based upon strict liability in 7 tort or breach of implied warranty of merchantability product 8 liability action which arises solely from an alleged defect in 9 the original design or manufacture of the product. 10 b. Not liable for damages based upon strict liability in 11 tort or breach of implied warranty of merchantability for the 12 product in any product liability action upon proof that the 13 actual manufacturer is subject to the jurisdiction of the 14 courts of this state and has not been judicially declared 15 insolvent. 16 c. Not liable for damages in any product liability action 17 which arises from an alleged defect or negligent action or 18 inaction in packaging, warning, or labeling of a product, 19 unless the person exercised substantial control over the 20 packaging, warning, or labeling of the product and took action 21 with respect to the packaging, warning, or labeling of the 22 product that was a proximate cause of the injury from which the 23 claim arises. 24 2. A person who is a retailer of a product and who assembles 25 a product, such assembly having no causal relationship to the 26 injury from which the claim arises, is not liable for damages 27 based upon strict liability in tort or breach of implied 28 warranty of merchantability which arises from an alleged 29 defect in the original design or manufacture of the product 30 in any product liability action upon proof that the actual 31 manufacturer is subject to the jurisdiction of the courts of 32 this state and has not been judicially declared insolvent. 33 3. An action brought pursuant to this section , where the 34 claimant certifies that the actual manufacturer of the product 35 -1- LSB 5423XC (3) 90 cm/jh 1/ 5

S.F. _____ is not yet identifiable, tolls the statute of limitations 1 against such actual manufacturer until such time as discovery 2 in the case has identified the actual manufacturer. 3 4. As used in this section, “product liability action” 4 means any action brought against a manufacturer or seller of a 5 product, regardless of the substantive legal theory or theories 6 on which the action is brought, for or on account of personal 7 injury, death, or property damage caused by or resulting 8 from the manufacture, construction, design, formulation, 9 installation, preparation, assembly, testing, packaging, 10 warning, labeling, or sale of any product, the failure to warn 11 or protect against a danger or hazard in the use, misuse, or 12 unintended use of any product, or the failure to provide proper 13 instructions for the use of any product. 14 Sec. 2. Section 668.12, subsections 1 and 4, Code 2024, are 15 amended to read as follows: 16 1. In any product liability action brought pursuant to 17 this chapter against an assembler, designer, supplier of 18 specifications, distributor, manufacturer, or seller for 19 damages arising from an alleged defect or negligent action or 20 inaction in the design, testing, manufacturing, formulation, 21 packaging, warning, or labeling of a product, a percentage 22 of fault shall not be assigned to such persons if they plead 23 and prove that the product conformed to the state of the art 24 in existence at the time the product was designed, tested, 25 manufactured, formulated, packaged, provided with a warning, 26 or labeled. 27 4. In any product liability action brought pursuant to 28 this chapter against an assembler, designer, supplier of 29 specifications, distributor, manufacturer, or seller for 30 damages arising from an alleged defect or negligent action 31 or inaction in packaging, warning, or labeling of a product, 32 a product bearing or accompanied by a reasonable and visible 33 warning or instruction that is reasonably safe for use if 34 the warning or instruction is followed shall not be deemed 35 -2- LSB 5423XC (3) 90 cm/jh 2/ 5

S.F. _____ defective or unreasonably dangerous on the basis of failure 1 to warn or instruct. When reasonable minds may differ as to 2 whether the warning or instruction is reasonable and visible, 3 the issues shall be decided by the trier of fact. 4 Sec. 3. Section 668.12, Code 2024, is amended by adding the 5 following new subsections: 6 NEW SUBSECTION . 5. In any product liability action brought 7 against an assembler, designer, supplier of specifications, 8 distributor, manufacturer, or seller for damages arising from 9 an alleged unreasonable condition or defect in the design, 10 testing, manufacturing, formulation, packaging, warning, or 11 labeling of a product, it shall be rebuttably presumed that the 12 product which caused the injury, death, or property damage was 13 not in a defective condition that is unreasonably dangerous 14 and that the manufacturer or seller of the product was not 15 negligent, and the jury shall be informed of this presumption, 16 if at the time the product was first sold or leased to any 17 person or otherwise placed into the stream of commerce any of 18 the following is true: 19 a. The product’s formula, manufacture, design, labeling, 20 warning, or instructions complied with mandatory safety 21 statutes, standards, or regulations adopted by the federal 22 or state government or an agency of the federal or state 23 government that were applicable to the product at the time 24 of its manufacture and that addressed the product risk that 25 allegedly caused harm. 26 b. The product was subject to premarket licensing or 27 approval by the federal or state government or an agency of 28 the federal or state government, the seller complied with all 29 of the government’s or agency’s procedures and requirements 30 pertaining to premarketing licensing or approval, and the 31 product was approved or licensed for sale by the government or 32 agency. 33 c. The product was a drug or medical device approved 34 for safety and efficacy by the United States food and drug 35 -3- LSB 5423XC (3) 90 cm/jh 3/ 5

S.F. _____ administration, and that the product was in compliance, in 1 addition to its labeling, with the United States food and drug 2 administration’s approval at the time the product left the 3 control of the seller and was not sold in the United States 4 after the effective date of any order of the United States food 5 and drug administration to remove the product at issue from the 6 market or to withdraw its approval. 7 NEW SUBSECTION . 6. As used in this section, “product 8 liability action” means the same as defined in section 613.18, 9 subsection 4. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to civil liability in product liability 14 actions. The bill defines the term “product liability action” 15 to mean any action brought against a manufacturer or seller 16 of a product, regardless of the substantive legal theory or 17 theories on which the action is brought, for or on account 18 of personal injury, death, or property damage caused by 19 or resulting from the manufacture, construction, design, 20 formulation, installation, preparation, assembly, testing, 21 packaging, warning, labeling, or sale of any product, the 22 failure to warn or protect against a danger or hazard in the 23 use, misuse, or unintended use of any product, or the failure 24 to provide proper instructions for the use of any product. 25 The bill expands the protections of product liability for 26 nonmanufacturers to include a person who leases or rents a 27 product, removes the strict liability in tort or breach of 28 implied warranty of merchantability standard, and provides 29 protection for damages from an alleged defect or negligent 30 action or inaction in packaging, warning, or labeling of a 31 product. 32 The bill enlarges the scope for defenses to product 33 liability available to an assembler, designer, supplier 34 of specifications, distributor, manufacturer, or seller to 35 -4- LSB 5423XC (3) 90 cm/jh 4/ 5

S.F. _____ include negligent action or inaction in the design testing, 1 manufacturing, formulation, packaging, warning, or labeling 2 of a product. The bill also includes additional defenses 3 for an assembler, designer, supplier of specifications, 4 distributor, manufacturer, or seller for damages arising from 5 an alleged defect or negligent action or inaction in packaging, 6 warning, or labeling of a product, if the product bears or is 7 accompanied by visible warning or instruction that is safe for 8 use if the warning or instruction is followed. 9 The bill provides a rebuttable presumption for a product 10 that causes harm that the product was not in a defective 11 condition that is unreasonably dangerous and that the 12 manufacturer or seller thereof was not negligent, if at the 13 time the product was first sold or leased any of the following 14 are true: (1) the product’s formula, manufacture, design, 15 labeling, warning, or instructions complied with mandatory 16 safety statutes, standards, or regulations adopted by the 17 federal or state government or an agency of the federal or 18 state government that were applicable to the product, (2) the 19 product was subject to premarket licensing or approval by the 20 federal or state government or an agency of the federal or 21 state government, the seller complied, and the product was 22 approved or licensed for sale, or (3) the product was a drug or 23 medical device approved for safety and efficacy by the United 24 States food and drug administration, and that the product was 25 in compliance with such approval when the product left control 26 of the seller. 27 -5- LSB 5423XC (3) 90 cm/jh 5/ 5