Hello,

Late last night, the Iowa House amended and passed SF2338, which is legislation that provides for business liability protections related to COVID-19. The bill was approved along party lines 52-44. ABI spearheaded this legislation along with the support of several other associations and businesses.

The bill contains a number of important provisions designed to protect businesses that are doing the right thing from an explosion of lawsuits, while still allowing litigation to proceed against those who would intentionally harm someone, act with reckless disregard or act with actual malice.

The legislation:
  • Requires that individuals bringing suit meet minimum medical conditions, in this case hospitalization or death.  
  • Provides protections from liability lawsuits to persons in control of a facility unless that person recklessly disregards risks or acts with malice.  
  • Provides protection from lawsuits if the business was in substantial compliance with federal or state regulations, orders or guidance.
  • Provides protection from lawsuits to health care providers as their industry transformed to respond to COVID-19.
  • Provides protection from lawsuits to those involved in providing products like disinfectants and face shields needed to fight the virus unless the person disregarded a substantial or unnecessary risk or acted with malice.
  • Is retroactive to cover the entire period of the presence, to the best of our knowledge, of the coronavirus COVID-19 in Iowa. 

The debate on the bill was contentious at times, but ultimately the bill that passed included the language ABI strongly advocated for. ABI would like to thank Rep. Gary Carlson of Muscatine for his instrumental leadership in floor managing this legislation. He's been a champion for the business community throughout his time in the legislature. 

 

ABI would also like to thank all of the members who contacted their representative about this issue. This bill is a top priority for ABI as it will help businesses and Iowans get back to work.

 

The bill now goes back to the Senate. Majority Leader Whitver has stated business liability protections are a priority for his caucus. This bill could be passed in the Senate as early as next Tuesday or Wednesday. Please contact your senator this weekend and tell them to support the House amendment to SF2338.

 

Please reach out to JD Davis or myself if you have any questions about the bill.

 

Regards,

Brad Hartkopf