Senate File 2380 - Introduced SENATE FILE 2380 BY COMMITTEE ON TECHNOLOGY (SUCCESSOR TO SSB 3174) A BILL FOR An Act relating to abusive litigation alleging internet site 1 accessibility violations, and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6910SV (1) 91 lh/jh
S.F. 2380 Section 1. NEW SECTION . 685A.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Access violation” means any allegation that a public 4 accommodation does not provide sufficient access under Tit. 5 III of the federal Americans with Disabilities Act of 1990, 42 6 U.S.C. §12181 et seq., under chapter 216, or under any other 7 similar state or federal law relating to accessibility. 8 2. “Public accommodation” means the same as defined in 9 42 U.S.C. §2000a et seq. “Public accommodation” includes an 10 internet site operated by a resident. 11 3. “Resident” means an individual domiciled in this 12 state, or an entity organized under the laws of this state or 13 authorized to transact business in this state and registered 14 with the secretary of state. 15 Sec. 2. NEW SECTION . 685A.2 Civil action for determination 16 of abusive litigation. 17 1. The attorney general, on behalf of a class of residents 18 pursuant to rule 1.261 of the Iowa rules of civil procedure, 19 that is subject to litigation alleging an internet site access 20 violation, or any resident who is subject to such litigation, 21 may file a civil action against the party, attorney, or 22 law firm that initiated such litigation for a determination 23 of whether the litigation alleging an internet site access 24 violation constitutes abusive litigation. 25 2. In determining whether litigation alleging an internet 26 site access violation constitutes abusive litigation, the court 27 shall consider the totality of the circumstances to determine 28 whether the primary purpose of the litigation alleging an 29 internet site access violation is to obtain payment from the 30 defendant due to the cost of defending the action rather than 31 to remedy the internet site access violation. In making this 32 determination, the court may consider, but is not limited to, 33 the following factors: 34 a. The number of substantially similar actions filed by the 35 -1- LSB 6910SV (1) 91 lh/jh 1/ 5
S.F. 2380 same plaintiff, attorney, or law firm, and any history of such 1 plaintiff, attorney, or law firm filing frivolous litigation or 2 litigation declared abusive by a court in the past ten years. 3 b. The number of full-time employees employed by the 4 defendant and the resources available to the defendant to 5 engage in litigation. 6 c. The resources available to the defendant to correct the 7 alleged internet site access violation. 8 d. Whether the jurisdiction or venue where the action 9 is brought creates a substantial obstacle to defending the 10 litigation. 11 e. Whether the filing party or attorney is a resident or is 12 licensed to practice law in this state. 13 f. The nature of settlement discussions and the 14 reasonableness of settlement offers and refusals to settle. 15 Such settlement information shall be used only for purposes of 16 this chapter and shall not otherwise alter applicable rules of 17 evidence. 18 g. Whether factors supporting sanctions exist under 19 rule 1.413 of the Iowa rules of civil procedure and whether 20 sanctions would be appropriate. 21 3. a. If a defendant in litigation alleging an internet 22 site access violation makes a good-faith attempt to correct the 23 alleged violation within thirty days after receiving written 24 notice or being served with a petition containing sufficient 25 detail to identify and correct the alleged violation, 26 there shall be a rebuttable presumption that the subsequent 27 initiation or continuation of litigation constitutes abusive 28 litigation. 29 b. The rebuttable presumption shall not apply if the alleged 30 internet site access violation is not corrected, as determined 31 by the court, within ninety days after written notice or 32 service of the petition. 33 c. The court shall not determine whether the litigation is 34 abusive until the expiration of the ninety-day period or until 35 -2- LSB 6910SV (1) 91 lh/jh 2/ 5
S.F. 2380 the alleged violation is corrected, whichever occurs first. 1 Sec. 3. NEW SECTION . 685A.3 Attorney general determination. 2 If the attorney general issues a written determination that 3 litigation alleging an internet site access violation is not 4 abusive and such written determination is attached to the 5 petition in the litigation alleging an internet site access 6 violation, there shall be a rebuttable presumption that the 7 litigation is not abusive. 8 Sec. 4. NEW SECTION . 685A.4 Remedies. 9 1. If the court determines that litigation alleging an 10 internet site access violation constitutes abusive litigation, 11 the court may award to the prevailing party reasonable attorney 12 fees and costs incurred in bringing the action under this 13 chapter and in defending against the underlying abusive 14 litigation. 15 2. In addition to attorney fees and costs, the court may 16 award punitive damages or impose sanctions not to exceed three 17 times the amount of attorney fees awarded under subsection 1. 18 3. At the conclusion of the underlying litigation alleging 19 an internet site access violation, the court shall review any 20 determination of whether the litigation is abusive and any 21 award of attorney fees to determine the reasonableness of the 22 award prior to entry of judgment. The results obtained in the 23 litigation alleging an internet site access violation shall be 24 weighed heavily, particularly if the plaintiff prevailed. 25 Sec. 5. NEW SECTION . 685A.5 Repeal. 26 If the federal department of justice issues standards 27 concerning internet site accessibility under Tit. III of the 28 federal Americans with Disabilities Act of 1990, 42 U.S.C. 29 §12181 et seq., the attorney general shall notify the Iowa Code 30 editor. Upon receipt of such notification, this chapter shall 31 be repealed. 32 Sec. 6. APPLICABILITY. This Act applies to actions 33 commenced on or after July 1, 2026. 34 EXPLANATION 35 -3- LSB 6910SV (1) 91 lh/jh 3/ 5
S.F. 2380 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to abusive litigation alleging internet 3 site accessibility violations. 4 The bill defines “access violation” as an allegation 5 that a public accommodation does not provide sufficient 6 access under Tit. III of the federal Americans with 7 Disabilities Act of 1990, Code chapter 216, or similar state 8 or federal accessibility laws. The bill also defines “public 9 accommodation” and “resident”. 10 The bill provides that the attorney general, on behalf of 11 a class of residents or any resident subject to litigation 12 alleging an internet site access violation, may file a civil 13 action against the party, attorney, or law firm that initiated 14 the underlying litigation to determine whether the litigation 15 constitutes abusive litigation. 16 The bill provides that, in determining whether litigation 17 is abusive, the court must consider the totality of the 18 circumstances and determine whether the primary purpose of 19 the litigation is to obtain payment from the defendant due to 20 the cost of defending the action rather than to remedy the 21 alleged internet site access violation. The bill provides a 22 list of factors the court may consider, including the number 23 of substantially similar actions filed by the same plaintiff 24 or counsel and any history of frivolous or abusive litigation 25 within the past 10 years; the size and resources of the 26 defendant; the defendant’s resources to correct the alleged 27 violation; whether the chosen jurisdiction or venue creates a 28 substantial obstacle to defense; whether the filing party or 29 attorney is a resident or licensed to practice law in Iowa; 30 the nature and reasonableness of settlement discussions; and 31 whether sanctions would be appropriate. 32 The bill establishes a rebuttable presumption that 33 litigation is abusive if the defendant makes a good-faith 34 attempt to correct the alleged internet site access violation 35 -4- LSB 6910SV (1) 91 lh/jh 4/ 5
S.F. 2380 within 30 days after receiving written notice or service of 1 a sufficiently detailed petition. The presumption does not 2 apply if the internet site access violation is not corrected 3 within 90 days, as determined by the court. The court is 4 prohibited from determining whether litigation is abusive until 5 the expiration of the 90-day period or until the internet site 6 access violation is corrected, whichever occurs first. 7 The bill provides that if the attorney general issues a 8 written determination that litigation alleging an internet 9 site access violation is not abusive and the determination is 10 attached to the petition in the underlying litigation, there is 11 a rebuttable presumption that the litigation is not abusive. 12 The bill provides that if the court determines that 13 litigation constitutes abusive litigation, the court may award 14 reasonable attorney fees and costs incurred in bringing the 15 action and in defending against the underlying litigation. The 16 court may also award punitive damages or impose sanctions not 17 to exceed three times the amount of attorney fees awarded. At 18 the conclusion of the underlying litigation, the court must 19 review any determination of abusive litigation and any attorney 20 fee award for reasonableness before entry of judgment, and 21 must weigh heavily the results obtained in the underlying 22 litigation, particularly if the plaintiff prevailed. 23 The bill provides that if the federal department of justice 24 issues standards concerning internet site accessibility under 25 Tit. III of the federal Americans with Disabilities Act of 26 1990, the attorney general shall notify the Iowa Code editor, 27 and upon such notification, the bill is repealed. 28 The bill applies to actions commenced on or after July 1, 29 2026. 30 -5- LSB 6910SV (1) 91 lh/jh 5/ 5