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
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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
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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
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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.
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