House File 208 - Introduced
HOUSE FILE
BY RANTS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act eliminating civil liability provisions for alcoholic
2 beverage licensees or permittees.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1542YH 83
5 rh/rj/5
PAG LIN
1 1 Section 1. Section 123.92, Code 2009, is amended to read
1 2 as follows:
1 3 123.92 CIVIL LIABILITY FOR DISPENSING OR SALE AND SERVICE
1 4 OF OR GIVING BEER, WINE, OR INTOXICATING LIQUOR (DRAMSHOP ACT)
1 5 == LIABILITY INSURANCE == TO UNDERAGE PERSONS.
1 6 Any person who is injured in person or property or means of
1 7 support by an intoxicated person or resulting from the
1 8 intoxication of a person, has a right of action for all
1 9 damages actually sustained, severally or jointly, against any
1 10 licensee or permittee, whether or not the license or permit
1 11 was issued by the division or by the licensing authority of
1 12 any other state, who sold and served any beer, wine, or
1 13 intoxicating liquor to the intoxicated person when the
1 14 licensee or permittee knew or should have known the person was
1 15 intoxicated, or who sold to and served the person to a point
1 16 where the licensee or permittee knew or should have known the
1 17 person would become intoxicated. If the injury was caused by
1 18 an intoxicated person, a permittee or licensee may establish
1 19 as an affirmative defense that the intoxication did not
1 20 contribute to the injurious action of the person. The remedy
1 21 provided by this section shall apply both prospectively, to
1 22 actions filed on or after July 1, 1992, and retrospectively,
1 23 to actions pending in trial or appellate courts prior to July
1 24 1, 1992.
1 25 Every liquor control licensee and class "B" beer permittee,
1 26 except a class "E" liquor control licensee, shall furnish
1 27 proof of financial responsibility by the existence of a
1 28 liability insurance policy in an amount determined by the
1 29 division.
1 30 Notwithstanding section 123.49, subsection 1, any person
1 31 who is injured in person or property or means of support by an
1 32 intoxicated person who is under legal age or resulting from
1 33 the intoxication of a person who is under legal age, has a
1 34 right of action for all damages actually sustained, severally
1 35 or jointly, against a person who is not a licensee or
2 1 permittee and who dispensed or gave any beer, wine, or
2 2 intoxicating liquor to the intoxicated underage person when
2 3 the nonlicensee or nonpermittee who dispensed or gave the
2 4 beer, wine, or intoxicating liquor to the underage person knew
2 5 or should have known the underage person was intoxicated, or
2 6 who dispensed or gave beer, wine, or intoxicating liquor to
2 7 the underage person to a point where the nonlicensee or
2 8 nonpermittee knew or should have known that the underage
2 9 person would become intoxicated. If the injury was caused by
2 10 an intoxicated person who is under legal age, a person who is
2 11 not a licensee or permittee and who dispensed or gave beer,
2 12 wine, or intoxicating liquor to the underage person may
2 13 establish as an affirmative defense that the intoxication did
2 14 not contribute to the injurious action of the underage person.
2 15 For purposes of this paragraph, "dispensed" or "gave" means
2 16 the act of physically presenting a receptacle containing beer,
2 17 wine, or intoxicating liquor to the underage person whose
2 18 actions or intoxication results in the sustaining of damages
2 19 by another person. However, a person who dispenses or gives
2 20 beer, wine, or intoxicating liquor to an underage person shall
2 21 only be liable for any damages if the person knew or should
2 22 have known that the underage person was under legal age.
2 23 Sec. 2. Section 123.95, subsection 1, Code 2009, is
2 24 amended to read as follows:
2 25 1. A person shall not allow the dispensing or consumption
2 26 of alcoholic liquor, except wines and beer, in any
2 27 establishment unless the establishment is licensed under this
2 28 chapter or except as otherwise provided in this section. The
2 29 holder of an annual class "B" liquor control license or an
2 30 annual class "C" liquor control license may act as the agent
2 31 of a private social host for the purpose of providing and
2 32 serving alcoholic liquor, wine, and beer as part of a food
2 33 catering service for a private social gathering in a private
2 34 place. The holder of an annual special class "C" liquor
2 35 control license shall not act as the agent of a private social
3 1 host for the purpose of providing and serving wine and beer as
3 2 part of a food catering service for a private social gathering
3 3 in a private place. The private social host or the licensee
3 4 shall not solicit donations in payment for the food or
3 5 alcoholic beverages from the guests, and the alcoholic
3 6 beverages and food shall be served without cost to the guests.
3 7 Section 123.92 does not apply to a liquor control licensee who
3 8 acts in accordance with this section when the liquor control
3 9 licensee is providing and serving food and alcoholic beverages
3 10 as an agent of a private social host at a private social
3 11 gathering in a private place which is not on the licensed
3 12 premises.
3 13 Sec. 3. Section 123.93, Code 2009, is repealed.
3 14 EXPLANATION
3 15 This bill eliminates civil liability provisions for
3 16 alcoholic beverage licensees or permittees, commonly referred
3 17 to as the dramshop Act. Current law provides that a person
3 18 who suffers personal injury, property damage, or loss of
3 19 support as a result of the actions of an intoxicated person
3 20 may, upon proper notice, seek damages from an alcoholic
3 21 beverage licensee or permittee who sold to and served
3 22 intoxicating beverages to a person when the licensee or
3 23 permittee knew or should have known the person was intoxicated
3 24 or should have known the person would become intoxicated and
3 25 the person is subsequently involved in an alcohol=related
3 26 accident resulting in injury to a third person.
3 27 LSB 1542YH 83
3 28 rh/rj/5