Relating to abusive litigation alleging internet site accessibility violations, and including applicability provisions

This bill relates to abusive litigation alleging internet site accessibility violations. The bill defines “access violation” as an allegation that a public accommodation does not provide sufficient access under Tit. III of the federal Americans with Disabilities Act of 1990, Code chapter 216, or similar state or federal accessibility laws. The bill also defines “public accommodation” and “resident”. The bill provides that the attorney general, on behalf of a class of residents or any resident subject to litigation alleging an internet site access violation, may file a civil action against the party, attorney, or law firm that initiated the underlying litigation to determine whether the litigation constitutes abusive litigation. The bill provides that, in determining whether litigation is abusive, the court must consider the totality of the circumstances and determine whether the primary purpose of the litigation is to obtain payment from the defendant due to the cost of defending the action rather than to remedy the alleged internet site access violation. The bill provides a list of factors the court may consider, including the number of substantially similar actions filed by the same plaintiff or counsel and any history of frivolous or abusive litigation within the past 10 years; the size and resources of the defendant; the defendant’s resources to correct the alleged violation; whether the chosen jurisdiction or venue creates a substantial obstacle to defense; whether the filing party or attorney is a resident or licensed to practice law in Iowa; the nature and reasonableness of settlement discussions; and whether sanctions would be appropriate. The bill establishes a rebuttable presumption that litigation is abusive if the defendant makes a good-faith attempt to correct the alleged internet site access violation within 30 days after receiving written notice or service of a sufficiently detailed petition. The presumption does not apply if the internet site access violation is not corrected within 90 days, as determined by the court. The court is prohibited from determining whether litigation is abusive until the expiration of the 90-day period or until the internet site access violation is corrected, whichever occurs first. The bill provides that if the attorney general issues a written determination that litigation alleging an internet site access violation is not abusive and the determination is attached to the petition in the underlying litigation, there is a rebuttable presumption that the litigation is not abusive. The bill provides that if the court determines that litigation constitutes abusive litigation, the court may award reasonable attorney fees and costs incurred in bringing the action and in defending against the underlying litigation. The court may also award punitive damages or impose sanctions not to exceed three times the amount of attorney fees awarded. At the conclusion of the underlying litigation, the court must review any determination of abusive litigation and any attorney fee award for reasonableness before entry of judgment, and must weigh heavily the results obtained in the underlying litigation, particularly if the plaintiff prevailed. The bill provides that if the federal department of justice issues standards concerning internet site accessibility under Tit. III of the federal Americans with Disabilities Act of 1990, the attorney general shall notify the Iowa Code editor, and upon such notification, the bill is repealed. The bill applies to actions commenced on or after July 1, 2026.