Senate Study Bill 1190 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT BILL BY CHAIRPERSON DEARDEN) A BILL FOR An Act relating to evidence of financial responsibility 1 required to be furnished by certain pesticide applicators 2 to the department of agriculture and land stewardship, and 3 including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2143XC (5) 86 da/nh

S.F. _____ Section 1. Section 206.13, Code 2015, is amended to read as 1 follows: 2 206.13 Evidence of financial responsibility required by 3 commercial applicator applicators . 4 1. The department shall not issue a commercial applicator’s 5 license as required in section 206.6 until the applicant 6 has furnished evidence of financial responsibility with to 7 the department. The evidence of financial responsibility 8 shall consist of a surety bond, a liability insurance policy, 9 or an irrevocable letter of credit issued by a financial 10 institution. The department may accept a certification 11 of the evidence of financial responsibility. The evidence 12 of financial responsibility shall pay the amount that the 13 beneficiary is legally obligated to pay as damages caused 14 by the pesticide operations of the applicant. However, the 15 evidence of financial responsibility does not apply to damages 16 or an injury which is expected or intended from the standpoint 17 of the beneficiary. A liability insurance policy shall be 18 subject to the insurer’s policy provisions filed with and 19 approved by the commissioner of insurance. The evidence of 20 financial responsibility need not apply to damages or injury to 21 agricultural crops, plants, or land being worked upon by the 22 applicant. 23 2. The amount of the evidence of financial responsibility 24 as provided for in this section shall be not less than one 25 hundred thousand million dollars for property damage and 26 public liability insurance, each separately, or liability 27 insurance with limits of one three hundred thousand dollars 28 per occurrence and three six hundred thousand dollars annual 29 aggregate. The evidence of financial responsibility shall be 30 maintained at not less than that amount at all times during 31 the licensed period. The department shall be notified ten 32 days prior to any reduction in the surety bond or liability 33 insurance made at the request of the applicant or cancellation 34 of the surety bond by the surety or the liability insurance 35 -1- LSB 2143XC (5) 86 da/nh 1/ 3

S.F. _____ by the insurer. The department shall be notified ninety 1 days prior to any reduction of the amount of the irrevocable 2 letter of credit at the request of the applicant or the 3 cancellation of the irrevocable letter of credit by the 4 financial institution. The total and aggregate liability of 5 the surety, insurer, or financial institution for all claims 6 shall be limited to the face of the surety bond, liability 7 insurance policy, or irrevocable letter of credit. 8 3. Upon request by a person who alleges damages caused 9 by the pesticide operations of a commercial applicator, 10 the department shall provide that person with a copy of 11 the evidence of financial responsibility or any related 12 notification furnished by such commercial applicator to the 13 department under this section. 14 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 15 immediate importance, takes effect upon enactment. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 BILL’S PROVISIONS. This bill eliminates a provision that 20 allows a commercial applicator of pesticides to furnish a 21 certification in lieu of evidence of financial responsibility 22 and requires the department provide evidence of financial 23 responsibility and related documents to a person alleging 24 damages caused by a commercial applicator. The bill also 25 increases the limits for evidence of financial responsibility 26 from $100,000 to $1 million for property damage and public 27 liability damage each separately. The limits for liability 28 insurance are increased from $100,000 to $300,000 per 29 occurrence and from $300,000 to $600,000 as an annual 30 aggregate. 31 TERMS. A commercial applicator is a person who applies 32 pesticides for compensation, but does not include a farmer 33 trading work with another farmer, a person employed by a farmer 34 who applies pesticides as an incidental part of the person’s 35 -2- LSB 2143XC (5) 86 da/nh 2/ 3

S.F. _____ duties, or a person who applies pesticides as an incidental 1 part of a custom farming operation. Evidence of financial 2 responsibility includes a surety bond, a liability insurance 3 policy, or an irrevocable letter of credit. A pesticide 4 includes any substance that prevents, destroys, or mitigates 5 pests in the form of plant or animal life and viruses, and 6 includes plant growth regulators, defoliants, and desiccants. 7 EFFECTIVE DATE. The bill takes effect upon enactment. 8 -3- LSB 2143XC (5) 86 da/nh 3/ 3