SENATE FILE 8

BY  JOHNSON

A BILL FOR

An Act relating to motor fuel, including ethanol blended gasoline and biodiesel fuel, by limiting the liability of retail dealers. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  214A.20  Retail dealers —— limitation on liability.
   1.  A retail dealer is not liable for damages caused to a motor by the use of incompatible motor fuel dispensed at the retail dealer’s retail motor fuel site, if all of the following applies:
   a.  The incompatible motor fuel complies with the specifications for a type of motor fuel as provided in section 214A.2.
   b.  The incompatible motor fuel is selected by a person other than the retail dealer, including an employee or agent of the retail dealer.
   c.  The incompatible motor fuel is dispensed from a motor fuel pump that correctly labels the type of fuel dispensed.
   2.  For purposes of this section, a motor fuel is incompatible with a motor according to the manufacturer of the motor.
EXPLANATION
   This bill amends Code chapter 214A, which provides for motor fuel, including gasoline or ethanol blended gasoline, E-85 gasoline, diesel fuel, and biodiesel fuel. The bill provides that a retail dealer is not liable for damages caused to a motor by the use of an incompatible motor fuel (e.g., the use of E-85 gasoline in a conventional gasoline-powered motor). The bar against liability depends upon the satisfaction of certain conditions: (1) the motor fuel must meet legal specifications, (2) the retail dealer cannot have selected it for use in the motor, and (3) the dispensing pump must be correctly labeled.