Senate File 413 - Introduced SENATE FILE 413 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SSB 1010) A BILL FOR An Act relating to statute-of-repose periods for improvements 1 to real property and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1472SV (2) 87 jh/rj

S.F. 413 Section 1. Section 614.1, subsection 11, Code 2017, is 1 amended to read as follows: 2 11. Improvements to real property. 3 a. In addition to limitations contained elsewhere in this 4 section, an action arising out of the unsafe or defective 5 condition of an improvement to real property based on tort 6 and implied warranty and for contribution and indemnity, and 7 founded on injury to property, real or personal, or injury to 8 the person or wrongful death, shall not be brought more than 9 fifteen the number of years specified below after the date on 10 which occurred the act or omission of the defendant alleged in 11 the action to have been the cause of the injury or death . : 12 (1) For an action arising from or related to a nuclear 13 power plant licensed by the United States nuclear regulatory 14 commission or an interstate pipeline licensed by the federal 15 energy regulatory commission, fifteen years. 16 (2) For an action arising from or related to residential 17 construction, as defined in section 572.1, ten years. 18 (3) For an action arising from or related to any other kind 19 of improvement to real property, eight years. 20 b. Notwithstanding subsection “a” , an action arising from or 21 related to the intentional misconduct or fraudulent concealment 22 of an unsafe or defective condition of an improvement to real 23 property shall not be brought more than fifteen years after the 24 date on which occurred the act or omission of the defendant 25 alleged in the action to have been the cause of the injury or 26 death. 27 c. If the unsafe or defective condition is discovered within 28 one year prior to the expiration of the applicable period of 29 repose, the period of repose shall be extended one year. 30 d. However, this This subsection does not bar an action 31 against a person solely in the person’s capacity as an owner, 32 occupant, or operator of an improvement to real property. 33 Sec. 2. APPLICABILITY. This Act does not apply to an 34 improvement to real property in existence prior to the 35 -1- LSB 1472SV (2) 87 jh/rj 1/ 3

S.F. 413 effective date of this Act. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to the statute-of-repose period in a 5 case arising out of the unsafe or defective condition of an 6 improvement to real property. A statute-of-repose period 7 differs from a statute-of-limitations period in that a statute 8 of repose establishes a time period after which a lawsuit based 9 upon negligence in an improvement to real property cannot 10 be filed regardless of whether an injury to a person or to 11 property has occurred. A statute-of-limitations period begins 12 at the date of the injury or upon discovery of the deficiency. 13 Under current law, a case arising out of the unsafe or 14 defective condition of an improvement to real property is 15 subject to a 15-year statute of repose. Such cases are 16 based upon an injury to property or an injury or death of 17 a person. The bill provides that for actions arising from 18 or related to a nuclear power plant or interstate pipeline, 19 the period remains 15 years. For actions arising from or 20 related to the construction on single-family or two-family 21 dwellings occupied or used, or intended to be occupied or used, 22 primarily for residential purposes, the period is reduced to 23 10 years. For actions arising from or related to any other 24 kind of improvement to real property, the period is reduced to 25 eight years. However, for actions arising from or related to 26 intentional misconduct or fraudulent concealment, the period 27 for the statute of repose is 15 years, regardless of the type 28 of real property. 29 The bill also provides that if the unsafe or defective 30 condition is discovered within the final year prior to the 31 expiration of the applicable period of repose, the period is 32 extended for an additional year. 33 The bill does not reduce the statute of repose for real 34 property improvements in existence prior to the effective date 35 -2- LSB 1472SV (2) 87 jh/rj 2/ 3

S.F. 413 of the bill. 1 -3- LSB 1472SV (2) 87 jh/rj 3/ 3