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IA HSB517
SB
Status
Introduced
1/13/2026
Primary Sponsor
Commerce
Click for details
AI Summary
- Requires persons contractually obligated under motor vehicle or residential service contracts to obtain a license from the Iowa Insurance Commissioner before issuing, offering, or selling such contracts in the state.
- Establishes new definitions including "gross consideration" (total contract value without deductions), "service contract holder" (original purchaser or transferee), and "substitute part" (non-original manufacturer parts including remanufactured, aftermarket, or salvage parts).
- Mandates service companies report material changes to their license application information within 30 calendar days, including changes to contact information, ownership, or officers/directors responsible for service contract business.
- Requires service companies to report administrative actions taken against them in other jurisdictions and criminal prosecutions involving dishonesty or false statements against owners with more than 10% stake, officers, or directors.
- Adds failure to comply with Chapter 523C (service contracts) as an unfair trade practice under Section 507B.4, subjecting violators to civil penalties.
Legislative Description
A bill for an act relating to licensing of service companies, motor vehicle service contracts, and residential service contracts, and providing civil penalties.(See HF 2714.)
Last Action
Committee report approving bill, renumbered as HF 2714.
2/24/2026
Committee Referrals
Commerce1/13/2026
Full Bill Text
No bill text available