General Assembly: 87 (2018 Regular GA) - Chapter 1090 - Alcoholic beverage licensees or permittees and dramshop liability

Published: 2018-04-10

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S.F. 2169

AN ACT limiting the liability of an alcoholic beverage licensee or permittee for certain alcohol-related injuries.

Be It Enacted by the General Assembly of the State of Iowa:

Section 1. Section 123.92, subsection 1, Code 2018, is amended to read as follows: 1. a. Any person third party who is not the intoxicated person who caused the injury at

issue and who is injured in person or property or means of support by an intoxicated person or resulting from the intoxication of a person, has a right of action for all damages actually sustained, severally or jointly, up to the amount specified in paragraph “c”, against any licensee or permittee, whether or not the license or permit was issued by the division or by the licensing authority of any other state, who sold and served any beer, wine, or intoxicating liquor directly to the intoxicated person, when the licensee or permittee knew or should have known the person was intoxicated, or who sold to and served the person to a point where the licensee or permittee knew or should have known the person would become intoxicated provided that the person was visibly intoxicated at the time of the sale or service. 1 b. If the injury was proximately caused by an intoxicated person, a permittee or licensee

may establish as an affirmative defense that the intoxication did not contribute to the injurious action of the person. c. The total amount recoverable by each plaintiff in any civil action for noneconomic

damages for personal injury, whether in tort, contract, or otherwise, against a licensee or permittee, shall be limited to two hundred fifty thousand dollars for any injury or death of a person, unless the jury determines that there is a substantial or permanent loss or impairment of a bodily function, substantial disfigurement, or death, which warrants a finding that imposition of such a limitation would deprive the plaintiff of just compensation for the injuries sustained.

Sec. 2. Section 123.92, Code 2018, is amended by adding the following new subsection: NEW SUBSECTION. 4. The division shall biennially conduct an evaluation concerning

minimum coverage requirements of dramshop liability insurance. In conducting the evaluation, the division shall include a comparison of other states’ minimum dramshop liability insurance coverage and any other relevant issues the division identifies. By January 31, 2019, and every two years thereafter, the division shall submit a report, including any findings and recommendations, to the general assembly as provided in chapter 7A. 2

Approved April 10, 2018

1 See chapter 1172, §51 herein 2 See chapter 1172, §53 herein

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