House File 547
HOUSE FILE
BY COMMITTEE ON AGRICULTURE
(SUCCESSOR TO HSB 236)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for evidence of financial responsibility filed
2 by commercial pesticide applicators, and providing an
3 effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 HF 547
6 da/es/25
PAG LIN
1 1 Section 1. Section 206.2, Code 2003, is amended by adding
1 2 the following new subsections:
1 3 NEW SUBSECTION. 8A. "Department" means the department of
1 4 agriculture and land stewardship.
1 5 NEW SUBSECTION. 10A. "Financial institution" means a bank
1 6 or savings and loan association authorized by this state or by
1 7 the laws of the United States, which is a member of the
1 8 federal deposit insurance corporation or the federal savings
1 9 and loan insurance corporation.
1 10 Sec. 2. Section 206.13, Code 2003, is amended to read as
1 11 follows:
1 12 206.13 SURETY BOND OR INSURANCE EVIDENCE OF FINANCIAL
1 13 RESPONSIBILITY REQUIRED OF BY COMMERCIAL APPLICATOR.
1 14 The secretary department shall not issue a commercial
1 15 applicator's license as required in section 206.6 until the
1 16 applicant has furnished evidence of financial responsibility
1 17 with the secretary consisting either of department. The
1 18 evidence of financial responsibility shall consist of a surety
1 19 bond, or a liability insurance policy, or an irrevocable
1 20 letter of credit issued by a financial institution. The
1 21 department may accept a certification thereof of the evidence
1 22 of financial responsibility. Such surety bond or liability
1 23 insurance policy The evidence of financial responsibility
1 24 shall provide coverage to pay on behalf of the insured all
1 25 sums which the insured shall become amount that the
1 26 beneficiary is legally obligated to pay as damages as a result
1 27 of caused by the pesticide operations of the applicant.
1 28 However, the surety bond or liability insurance policy will
1 29 evidence of financial responsibility does not apply to damages
1 30 or an injury which are either is expected or intended from the
1 31 standpoint of the insured beneficiary. Any such A liability
1 32 insurance policy shall be subject to the insurer's policy
1 33 provisions filed with and approved by the commissioner of
1 34 insurance. The surety bond or liability insurance policy
1 35 submitted as evidence of financial responsibility need not
2 1 apply to damages or injury to agricultural crops, plants, or
2 2 land being worked upon by the applicant.
2 3 The amount of the surety bond or liability insurance
2 4 evidence of financial responsibility as provided for in this
2 5 section shall be not less than fifty thousand dollars for
2 6 property damage and public liability insurance, each
2 7 separately. Such surety bond or liability insurance The
2 8 evidence of financial responsibility shall be maintained at
2 9 not less than that sum amount at all times during the licensed
2 10 period. The secretary department shall be notified ten days
2 11 prior to any reduction in the surety bond or liability
2 12 insurance made at the request of the applicant or cancellation
2 13 of such the surety bond by the surety or the liability
2 14 insurance by the surety or insurer. The department shall be
2 15 notified ninety days prior to any reduction of the amount of
2 16 the irrevocable letter of credit at the request of the
2 17 applicant or the cancellation of the irrevocable letter of
2 18 credit by the financial institution. The total and aggregate
2 19 liability of the surety, and insurer, or financial institution
2 20 for all claims shall be limited to the face of the surety
2 21 bond, or liability insurance policy, or irrevocable letter of
2 22 credit.
2 23 Sec. 3. EFFECTIVE DATE. This Act, being deemed of
2 24 immediate importance, takes effect upon enactment.
2 25 HF 547
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