HSB 594 (LSB 5939YC (2) 87)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE)

A BILL FOR

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 innocent third party 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 amounts specified in paragraphs “c” and “d”, 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.
   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.  For all claims under this subsection involving injury in person or property, the judgment or recovery for such injury for a person incurring damages shall not exceed seventy-five thousand dollars.
   d.  For all claims under this subsection involving loss of means of support or loss of services, companionship, society, or consortium resulting from the death or injury of a person, the judgment or recovery of any person shall not exceed one hundred thousand dollars.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill limits the liability of an alcoholic beverage licensee or permittee for certain alcohol-related injuries, commonly referred to as the dram shop Act.
   Under current law, an alcoholic beverage licensee or permittee, whether or not the license or permit was issued by the division or by the licensing authority of any other state, is liable to a person for all damages resulting from an intoxicated person if the licensee or permittee sold or served the alcohol 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.
   The bill provides that damages are available to an innocent third party, and that a licensee or permittee is liable only if the licensee or permittee sold and served any beer, wine, or intoxicating liquor directly to the intoxicated person, provided that the person was visibly intoxicated at the time of the sale or service.
   The bill provides that damages available to an innocent third party from a licensee or permittee are limited to $75,000 for claims involving injury to a person or property, and to $100,000 for claims involving loss of means of support or loss of services, companionship, society, or consortium resulting from the death or injury of a person.