House File 194 - Introduced HOUSE FILE BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 21) A BILL FOR 1 An Act relating to statute=of=repose periods for improvements 2 to real property involving residential and nonresidential 3 construction and including applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1102HV (1) 86 jh/rj PAG LIN 1 1 Section 1. Section 614.1, subsection 11, Code 2015, is 1 2 amended to read as follows: 1 3 11. Improvements to real property. 1 4 a. Residential construction. In addition to limitations 1 5 contained elsewhere in this section, an action arising out of 1 6 the unsafe or defective condition of an improvement toreal 1 7 propertyresidential construction based on tort and implied 1 8 warranty and for contribution and indemnity, and founded on 1 9 injury to property, real or personal, or injury to the person 1 10 or wrongful death, shall not be brought more than fifteen years 1 11 after the date on which occurred the act or omission of the 1 12 defendant alleged in the action to have been the cause of the 1 13 injury or death. However, thissubsectionparagraph does not 1 14 bar an action against a person solely in the person's capacity 1 15 as an owner, occupant, or operator of an improvement to real 1 16 property. 1 17 b. Nonresidential construction. In addition to limitations 1 18 contained elsewhere in this section, an action arising out 1 19 of the unsafe or defective condition of an improvement to 1 20 nonresidential construction based on tort and implied warranty 1 21 and for contribution and indemnity, and founded on injury to 1 22 property, real or personal, or injury to the person or wrongful 1 23 death, shall not be brought more than ten years after the date 1 24 on which occurred the act or omission of the defendant alleged 1 25 in the action to have been the cause of the injury or death. 1 26 However, this paragraph does not bar an action against a person 1 27 solely in the person's capacity as an owner, occupant, or 1 28 operator of an improvement to real property. 1 29 c. Definitions. For purposes of this subsection, 1 30 "residential construction" means the same as defined in 1 31 section 572.1. "Nonresidential construction" means all other 1 32 construction that is not residential construction. 1 33 Sec. 2. APPLICABILITY. This Act does not apply to 1 34 residential=construction or nonresidential=construction 1 35 projects in existence prior to the effective date of this Act. 2 1 EXPLANATION 2 2 The inclusion of this explanation does not constitute agreement with 2 3 the explanation's substance by the members of the general assembly. 2 4 This bill relates to the statute=of=repose period in a 2 5 case arising out of the unsafe or defective condition of an 2 6 improvement to nonresidential construction. 2 7 Under current law, a case arising out of the unsafe or 2 8 defective condition of an improvement to real property, whether 2 9 residential or nonresidential construction, is subject to 2 10 a 15=year statute of repose. Such cases are based upon an 2 11 injury to property or an injury or death of a person. The bill 2 12 reduces the period of the statute of repose for cases relating 2 13 to nonresidential construction from 15 years to 10 years. The 2 14 statute=of=repose period for cases relating to residential 2 15 construction remains 15 years. 2 16 The bill defines "residential construction" by cross 2 17 reference to the definition of that term contained in Code 2 18 chapter 572, which relates to mechanic's liens. Code section 2 19 572.1 defines "residential construction" as construction on 2 20 single=family or two=family dwellings occupied or used, or 2 21 intended to be occupied or used, primarily for residential 2 22 purposes. The bill defines "nonresidential construction" as 2 23 any construction that is not residential construction. 2 24 A statute=of=repose period differs from a 2 25 statute=of=limitations period in that a statute of repose 2 26 establishes a time period after which a lawsuit based upon 2 27 negligence in an improvement to real property cannot be filed 2 28 regardless of whether an injury to a person or to property has 2 29 occurred. A statute=of=limitations period begins at the date 2 30 of the injury or upon discovery of the deficiency. 2 31 The bill does not reduce the statute of repose for 2 32 residential and nonresidential construction projects in 2 33 existence prior to the effective date of the Act. LSB 1102HV (1) 86 jh/rj