Iowa Senate Bill SSB3195

Iowa 2023-2024 Regular Session

• Introduced: 3/25/24
• Refer: 3/25/24

Caption

A bill for an act relating to civil liability and associated insurance requirements of alcoholic beverage licensees or permittees who also sell or serve consumable hemp products.(See SF 2425.)

Impact

Should this bill be enacted, it will fundamentally alter the liability landscape for establishments that serve both alcoholic beverages and consumable hemp products. Specifically, the total amount recoverable for noneconomic damages in personal injury cases involving consumable hemp products will be set at $500,000, which is higher than the $250,000 limit for alcoholic beverages unless specific circumstances warrant more. This change reflects a growing recognition of the potential risks associated with hemp products and aims to ensure that injured parties have adequate recourse for damages sustained.

Summary

Senate Study Bill 3195 seeks to amend civil liability and insurance requirements for alcoholic beverage licensees who also sell or serve consumable hemp products. The bill expands the scope of the existing dramshop Act, which currently applies to alcoholic beverages served to visibly intoxicated individuals, to include consumable hemp products under similar liability rules. Licensees or permittees who serve such products will now face potential civil liability if they serve intoxicated individuals, and the bill specifies new insurance requirements to protect the public from damages resulting from such acts.

Contention

Debates surrounding SSB3195 may center on the balance between protecting consumer interests and the economic implications for businesses. Proponents argue that it reinforces accountability for those providing alcohol and hemp products, ensuring that public safety is prioritized. Conversely, opponents may express concern that escalating liability caps and insurance requirements could hinder the viability of small businesses in the market due to increased operational costs. These discussions highlight the contrasting views on regulation and responsibility in the rapidly evolving consumer landscape surrounding hemp products.