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 DISPENSINGOR SALE AND SERVICE 1 4 OFOR GIVING BEER, WINE, OR INTOXICATING LIQUOR(DRAMSHOP ACT) 1 5 == LIABILITY INSURANCE ==TO UNDERAGE PERSONS. 1 6Any 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 25Every 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 7Section 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