HSB 517: Relating to licensing of service companies, motor vehicle service contracts, and residential service contracts, and providing civil penalties

What it does

This bill relates to the licensing of service companies, motor vehicle service contracts, and residential service contracts. The bill prohibits a person that will be contractually obligated to a service contract holder under the terms of a service contract from issuing, offering for sale, or selling a motor vehicle service contract or residential service contract in the state unless the person is a licensed service company. _____ provides support services. “Support services” is defined in the bill.

House subcommittee · named January 13, 2026

• Rep. Mike Vondran (R) · mike.vondran@legis.iowa.gov
• Rep. John H. Wills (R) · john.wills@legis.iowa.gov
• Rep. Adam Zabner (D) · adam.zabner@legis.iowa.gov

Lobbying · 2 for, 1 against

For: AARP Iowa; Iowa Insurance Division

Against: Service Contract Industry Council, Inc.

In plain words

1. January 13, 2026Filed in the House and sent to the Commerce committee
2. January 13, 2026House subcommittee named: Vondran, Wills, J. and Zabner
3. January 15, 2026Subcommittee recommended passing it
4. February 16, 2026Approved by the House committee
5. February 16, 2026Committee vote: 22–0
6. February 24, 2026Approved by the House committee, and given a new number: HF 2714