House Study Bill 594 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act limiting the liability of an alcoholic beverage licensee 1 or permittee for certain alcohol-related injuries. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5939YC (2) 87 asf/jh

H.F. _____ Section 1. Section 123.92, subsection 1, Code 2018, is 1 amended to read as follows: 2 1. a. Any person innocent third party who is injured 3 in person or property or means of support by an intoxicated 4 person or resulting from the intoxication of a person, has a 5 right of action for all damages actually sustained, severally 6 or jointly, up to the amounts specified in paragraphs “c” 7 and “d” , against any licensee or permittee, whether or not 8 the license or permit was issued by the division or by the 9 licensing authority of any other state, who sold and served any 10 beer, wine, or intoxicating liquor directly to the intoxicated 11 person , when the licensee or permittee knew or should have 12 known the person was intoxicated, or who sold to and served 13 the person to a point where the licensee or permittee knew or 14 should have known the person would become intoxicated provided 15 that the person was visibly intoxicated at the time of the sale 16 or service . 17 b. If the injury was proximately caused by an intoxicated 18 person, a permittee or licensee may establish as an affirmative 19 defense that the intoxication did not contribute to the 20 injurious action of the person. 21 c. For all claims under this subsection involving injury in 22 person or property, the judgment or recovery for such injury 23 for a person incurring damages shall not exceed seventy-five 24 thousand dollars. 25 d. For all claims under this subsection involving loss of 26 means of support or loss of services, companionship, society, 27 or consortium resulting from the death or injury of a person, 28 the judgment or recovery of any person shall not exceed one 29 hundred thousand dollars. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill limits the liability of an alcoholic beverage 34 licensee or permittee for certain alcohol-related injuries, 35 -1- LSB 5939YC (2) 87 asf/jh 1/ 2

H.F. _____ commonly referred to as the dram shop Act. 1 Under current law, an alcoholic beverage licensee or 2 permittee, whether or not the license or permit was issued 3 by the division or by the licensing authority of any other 4 state, is liable to a person for all damages resulting from an 5 intoxicated person if the licensee or permittee sold or served 6 the alcohol to the intoxicated person when the licensee or 7 permittee knew or should have known the person was intoxicated, 8 or who sold to and served the person to a point where the 9 licensee or permittee knew or should have known the person 10 would become intoxicated. 11 The bill provides that damages are available to an innocent 12 third party, and that a licensee or permittee is liable only 13 if the licensee or permittee sold and served any beer, wine, 14 or intoxicating liquor directly to the intoxicated person, 15 provided that the person was visibly intoxicated at the time 16 of the sale or service. 17 The bill provides that damages available to an innocent 18 third party from a licensee or permittee are limited to $75,000 19 for claims involving injury to a person or property, and to 20 $100,000 for claims involving loss of means of support or loss 21 of services, companionship, society, or consortium resulting 22 from the death or injury of a person. 23 -2- LSB 5939YC (2) 87 asf/jh 2/ 2