Bill Text: IA SSB3195 | 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.(See SF 2425.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-04-03 - Committee report approving bill, renumbered as SF 2425. [SSB3195 Detail]
Download: Iowa-2023-SSB3195-Introduced.html
Senate
Study
Bill
3195
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
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,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
15A.
“Consumable
hemp
product”
means
the
3
same
as
defined
in
section
204.2.
4
Sec.
2.
Section
123.92,
subsection
1,
Code
2024,
is
amended
5
to
read
as
follows:
6
1.
a.
Subject
to
the
limitation
amount
specified
in
7
paragraph
“c”
or
“d”
,
if
applicable,
any
third
party
who
is
8
not
the
intoxicated
person
who
caused
the
injury
at
issue
and
9
who
is
injured
in
person
or
property
or
means
of
support
by
10
an
intoxicated
person
or
resulting
from
the
intoxication
of
a
11
person,
has
a
right
of
action
for
damages
actually
sustained,
12
severally
or
jointly
against
any
licensee
or
permittee,
whether
13
or
not
the
license
or
permit
was
issued
by
the
department
or
14
by
the
licensing
authority
of
any
other
state,
who
sold
and
15
served
any
alcoholic
beverage
of
the
following
directly
to
16
the
intoxicated
person,
provided
that
the
person
was
visibly
17
intoxicated
at
the
time
of
the
sale
or
service
.
:
18
(1)
Any
alcoholic
beverage.
19
(2)
Any
consumable
hemp
product,
if
the
licensee
or
20
permittee
is
also
registered
to
sell
consumable
hemp
products
21
under
section
204.7
or
by
another
jurisdiction.
22
b.
If
the
injury
was
proximately
caused
by
an
intoxicated
23
person,
a
permittee
or
licensee
may
establish
as
an
affirmative
24
defense
that
the
intoxication
did
not
contribute
to
the
25
injurious
action
of
the
person.
26
c.
The
total
amount
recoverable
by
each
plaintiff
in
any
27
civil
action
for
noneconomic
damages
for
personal
injury,
28
whether
in
tort,
contract,
or
otherwise,
against
a
licensee
or
29
permittee
who
sold
and
served
any
alcoholic
beverage
giving
30
rise
to
such
civil
action
but
who
did
not
sell
or
serve
any
31
consumable
hemp
product
giving
rise
to
such
civil
action
,
shall
32
be
limited
to
two
hundred
fifty
thousand
dollars
for
any
injury
33
to
or
death
of
a
person,
unless
the
jury
determines
that
there
34
is
a
substantial
or
permanent
loss
or
impairment
of
a
bodily
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_____
function,
substantial
disfigurement,
or
death,
which
warrants
a
1
finding
that
imposition
of
such
a
limitation
would
deprive
the
2
plaintiff
of
just
compensation
for
the
injuries
sustained.
3
d.
The
total
amount
recoverable
by
each
plaintiff
in
any
4
civil
action
for
noneconomic
damages
for
personal
injury,
5
whether
in
tort,
contract,
or
otherwise,
against
a
licensee
6
or
permittee
who
sold
and
served
any
consumable
hemp
product
7
giving
rise
to
such
civil
action,
regardless
of
whether
the
8
licensee
or
permittee
also
sold
and
served
any
alcoholic
9
beverage
giving
rise
to
such
civil
action,
shall
be
limited
10
to
five
hundred
thousand
dollars
for
any
injury
to
or
death
11
of
a
person,
unless
the
jury
determines
that
there
is
a
12
substantial
or
permanent
loss
or
impairment
of
a
bodily
13
function,
substantial
disfigurement,
or
death,
which
warrants
a
14
finding
that
imposition
of
such
a
limitation
would
deprive
the
15
plaintiff
of
just
compensation
for
the
injuries
sustained.
16
Sec.
3.
Section
123.92,
subsection
2,
paragraph
c,
Code
17
2024,
is
amended
to
read
as
follows:
18
c.
The
purpose
of
dramshop
liability
insurance
is
to
provide
19
protection
for
members
of
the
public
who
experience
damages
as
20
a
result
of
licensees
serving
patrons
any
alcoholic
beverage
21
or
consumable
hemp
product
to
a
point
that
reaches
or
exceeds
22
the
standard
set
forth
in
law
for
liability.
Minimum
coverage
23
requirements
for
such
insurance
are
not
for
the
purpose
of
24
making
the
insurance
affordable
for
all
licensees
regardless
25
of
claims
experience.
A
dramshop
liability
insurance
policy
26
obtained
by
a
licensee
shall
meet
the
minimum
insurance
27
coverage
requirements
as
determined
by
the
department
and
is
a
28
mandatory
condition
for
holding
a
license.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
relates
to
civil
liability
and
associated
33
insurance
requirements
of
alcoholic
beverage
licensees
or
34
permittees
who
also
sell
or
serve
consumable
hemp
products.
35
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_____
Current
law
provides
for
civil
liability
and
insurance
1
requirements
for
alcoholic
beverage
licensees
and
permittees
2
who
sell
and
serve
alcoholic
beverages
to
a
visibly
intoxicated
3
person
(dramshop
Act).
The
bill
expands
the
applicability
4
of
the
dramshop
Act
to
include
a
licensee
or
permittee
who
5
sells
or
serves
any
consumable
hemp
product
(CHP),
if
the
6
licensee
or
permittee
is
also
registered
to
sell
CHPs
in
Iowa
7
(Code
section
204.7)
or
by
another
jurisdiction.
The
total
8
amount
recoverable
by
each
plaintiff
in
any
civil
action
for
9
noneconomic
damages
for
personal
injury
against
a
licensee
10
or
permittee
who
sold
and
served
any
CHP
giving
rise
to
11
such
civil
action
is
limited
to
$500,000
for
any
injury
or
12
death
of
a
person,
unless
the
jury
determines
that
there
is
13
a
substantial
or
permanent
loss
or
impairment
of
a
bodily
14
function,
substantial
disfigurement,
or
death,
which
warrants
15
a
finding
that
imposition
of
such
a
limitation
would
deprive
16
the
plaintiff
of
just
compensation
for
the
injuries
sustained.
17
Under
current
law,
the
limitation
applicable
to
selling
18
and
serving
alcoholic
beverages
is
$250,000,
with
a
similar
19
exception.
20
Current
law
prohibits
a
person
from
selling,
dispensing,
21
or
giving
to
an
intoxicated
person,
or
one
simulating
22
intoxication,
any
alcoholic
beverage
(Code
section
123.49(1)).
23
A
person
who
violates
this
provision
is
guilty
of
a
simple
24
misdemeanor
and
the
violation
is
also
grounds
for
the
25
suspension
or
revocation
of
an
alcohol
license
(Code
section
26
123.50).
The
bill
does
not
apply
these
provisions
to
CHPs.
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