Senate File 2224 - Introduced SENATE FILE 2224 BY DONAHUE A BILL FOR An Act relating to tort liability in civil actions involving 1 commercial motor vehicles, including employer liability, 2 noneconomic damages, punitive damages, and exemplary 3 damages. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6101XS (3) 90 cm/jh

S.F. 2224 Section 1. Section 668A.1, subsection 2, paragraphs a and b, 1 Code 2024, are amended to read as follows: 2 a. If the answer or finding pursuant to subsection 1 , 3 paragraph “b” , is affirmative, or if the claim is against any 4 physician and surgeon, osteopathic physician and surgeon, 5 dentist, podiatric physician, optometrist, pharmacist, 6 chiropractor, physician assistant, or nurse, licensed under 7 chapter 147 , or a hospital licensed under chapter 135B , arising 8 out of patient care, or if the claim is part of a civil action 9 involving the operation of a commercial motor vehicle, then the 10 full amount of the punitive or exemplary damages awarded shall 11 be paid to the claimant. 12 b. If the answer or finding pursuant to subsection 1 , 13 paragraph “b” , is negative, and if the claim is not against 14 any physician and surgeon, osteopathic physician and surgeon, 15 dentist, podiatric physician, optometrist, pharmacist, 16 chiropractor, physician assistant, or nurse, licensed under 17 chapter 147 , or a hospital licensed under chapter 135B , 18 arising out of patient care, and if the claim is not part of 19 a civil action involving the operation of a commercial motor 20 vehicle, then after payment of all applicable costs and fees, 21 an amount not to exceed twenty-five percent of the punitive or 22 exemplary damages awarded may be ordered paid to the claimant, 23 with the remainder of the award to be ordered paid into a 24 civil reparations trust fund administered by the state court 25 administrator. Funds placed in the civil reparations trust 26 shall be under the control and supervision of the executive 27 council, and shall be disbursed only for purposes of indigent 28 civil litigation programs or insurance assistance programs. 29 Sec. 2. REPEAL. Sections 668.12A and 668.15A, Code 2024, 30 are repealed. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to tort liability in actions involving 35 -1- LSB 6101XS (3) 90 cm/jh 1/ 3

S.F. 2224 commercial motor vehicles. 1 Under current law, the liability of an employer who is 2 a defendant in a civil action involving a commercial motor 3 vehicle for damages caused by negligence of an employee 4 acting within the scope and course of employment is based on 5 respondeat superior if the employer makes certain stipulations. 6 On motion of an employer, a trial court shall dismiss from the 7 action any claim of the employer’s direct negligence in hiring, 8 training, supervising, or trusting an employee, or other claim 9 of direct negligence on the part of the employer for the 10 employee’s harmful conduct, or other similar claims, if the 11 employer stipulates that at the time of the event that caused 12 the damages that the person whose negligence is the basis of 13 the action was the employer’s employee and the employee was 14 acting within the course and scope of employment with the 15 employer. 16 The bill repeals current law and makes an employer liable 17 for an employee’s negligence and may be held responsible for 18 direct negligence relating to hiring, training, supervising, or 19 trusting an employee, or other claims of direct negligence on 20 the part of the employee’s harmful conduct, subject to certain 21 limitations contained in Code chapter 671A (negligent hiring —— 22 limitations on liability) relating to convictions for public 23 offenses, with certain exceptions. 24 Current law limits the amount of noneconomic damages 25 available against the owner or operator of a commercial motor 26 vehicle for personal injury or death to $5 million regardless 27 of the number of derivative claims, theories of liability, or 28 defendants in the civil action. The bill repeals this cap. 29 Under current law, punitive or exemplary damages may be 30 awarded if, by a preponderance of clear, convincing, and 31 satisfactory evidence, the conduct of the defendant from which 32 the claim arose constituted willful and wanton disregard for 33 the rights or safety of another. In cases involving the 34 operation of a commercial vehicle, the full amount of the award 35 -2- LSB 6101XS (3) 90 cm/jh 2/ 3

S.F. 2224 of punitive or exemplary damages shall be paid to the claimant. 1 Under the bill, in cases involving commercial vehicles, the 2 amount of punitive and exemplary damages paid to a claimant 3 shall not exceed 25 percent, with the remainder awarded to 4 the civil reparations trust fund, unless the conduct of the 5 defendant was directed specifically at the claimant, or at 6 the person from which the claimant’s claim is derived. Funds 7 in the civil reparations trust fund are used for purposes of 8 indigent civil litigation programs or insurance assistance 9 programs. 10 -3- LSB 6101XS (3) 90 cm/jh 3/ 3