Iowa 2025-2026 Regular Session Status: Enacted

HF 2756 — A bill for an act relating to licensing of service companies, motor vehicle service contracts, and residential service contracts, and providing civil penalties and including effective date provisions.

Last action — Signed by Governor.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced April 06, 2026. Enacted.

Signed by Governor Kim Reynolds (Republican) on June 02, 2026.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 70% · moderate confidence
  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

This bill regulates the licensing of service companies and sets penalties for violations.

The bill establishes licensing requirements for service companies that offer motor vehicle and residential service contracts. It also includes provisions for civil penalties if these companies violate the regulations.

What this means for you
  • Consumers: This means consumers will have access to licensed service companies, potentially increasing their protection and trust in such services.

Bill Text

What changed in the latest version

679 added · 698 removed

Plain-language change summary

The latest version of House File 2756 adds definitions for terms like "gross consideration," "person," and "service contract holder." These changes help clarify the language of the bill, ensuring that everyone understands these key concepts related to service companies and contracts. This is important because clear definitions can help prevent misunderstandings and ensure that the legislation is enforced correctly. Overall, these amendments aim to improve the regulation of service contracts in a way that protects consumers.

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KimReynolds OFFICE O F T H E G O V E R N O R ChrisCournoyer G O V E R N O R L T G O V E R N O R June02,2026 The Honorable Paul Pate SecretaryofStateofIowa StateCapitol Des Moines,Iowa 50319 DearMr.Secretary, Iherebytransmit:
House File 2756 - Enrolled House File 2756 AN ACT RELATING TO LICENSING OF SERVICE COMPANIES, MOTOR VEHICLE SERVICE CONTRACTS, AND RESIDENTIAL SERVICE CONTRACTS, AND PROVIDING CIVIL PENALTIES AND INCLUDING EFFECTIVE DATE PROVISIONS.
HouseFile2756,anActrelatingtolicensingofservicecompanies,motorvehicleservice contracts,and residentialservicecontracts,and providingcivilpenaltiesandincluding effectivedateprovisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
The aboveHouseFileisherebyapproved onthisdate.
Section 1.
Sincerely, Kiml^ynolds^^ Govemor ofIowa cc:
Section 523C.1, Code 2026, is amended by adding the following new subsections:
SecretaryoftheSenate Clerk of the House STATE CAPITOL D E S MOINES, I O W A 50515.281.5211W W W .
NEW SUBSECTION .
G 0 V E R N 0 R .
1A.
1 0 W A .
“Communicating in a verifiable manner” means communication by in-person delivery, first class mail, email, or, if there is an auditable record of the communication, by telephone or software application on an electronic device.
G O V R RIOHT ^ WILLMAINTAI ran n n n m :
NEW SUBSECTION .
G E N E R A 1.
1B.
A S S E M B I A iiit»iniuRHmiiiiiiiinnninniiiiiUHiiBnnaBBniiitmBiaaimaiiHBniiiiiiniiBmBininiimiraiiiiHBMimHinuDiBiniiniimiiiiiiii»iiinniBn!i»s H o u s e F i l e 2 7 5 6 A N A C T RELATING TO LICENSING OF SERVICE COMPANIES, MOTOR VEHICLE SERVICE CONTRACTS, AND RESIDENTIAL SERVICE CONTRACTS, AND P R O V I D I N G C I V I L P E N A L T I E S A N D I N C L U D I N G E F F E C T I V E D A T E P R O V I S I O N S .
“Gross consideration” means the total value of a service contract without deducting any expenses or costs.
B E I T E N A C T E D B Y T H E G E N E R A L A S S E M B L Y O F T H E S T A T E O F I O W A :
Section 1, Section 523C.1, Code 2026, is amended by adding the following new subsections:
lA.
6A.
^Communicating in a verifiable manner'' means communication by in-person delivery, first class mail, email, or, if there is an auditable record of the communication, by telephone or software application on an e l e c t r o n i c d e v i c e .
“Person” means an individual or a business entity.
NEW SUBSECTION.
NEW SUBSECTION .
IB.
'^Gross consideration" means the total value of a service contract without deducting any expenses or c o s t s .
NEW SUBSECTION.
6 A .
^Person" means an individual or a business entity.
NEW SUBSECTION.
''^Service contract holder" means the original purchaser of a service contract or the successor in i n t e r e s t or t r a n s f e r e e entitled t o s e r v i c e s under the s e r v i c e c o n t r a c t .
“Service contract holder” means the original purchaser of a service contract or the successor in interest or transferee entitled to services under the service contract.
NEW SUBSECTION.
NEW SUBSECTION .
'^Substitute part" means a part that is not issued by the original part manufacturer, including but not limited to a remanufactured part, an aftermarket part, and a part obtained from a salvage yard.
“Substitute part” means a part that is not issued by the original part manufacturer, including but not limited to a remanufactured part, an aftermarket part, and a part obtained from a salvage yard.
2 NEW SUBSECTION.
2 NEW SUBSECTION .
^Support services" means a person that provides services that support, or a person that works under the direction of, a licensed service company in connection with the issuance, offer for sale, sale, or administration of a service contract in this state, including but not limited to a person that provides marketing, administrative, or technical support to a service company.
“Support services” means a person that provides services that support, or a person that works under the direction of, a licensed service company in connection with the issuance, offer for sale, sale, or administration of a service contract in this state, including but not limited to a person that provides marketing, administrative, or technical support to a service company.
Section 523C.1, subsection 4, Code 2026, is amended t oread a s f o l l o w s :
Section 523C.1, subsection 4, Code 2026, is amended to read as follows:
^Motor vehicle" means any vehicle that is self-propelled vohiclG and subject to registration under chapter 321.
“Motor vehicle” means any vehicle that is self-propelled vehicle and subject to registration under chapter 321.
Section 523C.1, subsection 10, Code 2026, is amended t or e aa s f o l l o w s :
Section 523C.1, subsection 10, Code 2026, is amended to read as follows:
^Residential service contract" means a contract or agreement between a residential customer and a service company which undertakes, for a predetermined fee and for any period of time, to service, maintain, repair, replace, or indemnify expenses for all or any part of the operational or structural components, appliances, or electrical, mechanical, plumbing, heating, cooling, or air-conditioning systems of residential property in the state which fails due to normal wear or tear or inherent defect-s—''^Residential service contract" also includes a contract which provides for the service,—repair/ replacement^ or maintenance of property for, or damage resulting from power surges, roof leakage, and or accidental damage.
“Residential service contract” means a contract or agreement between a residential customer and a service company which undertakes, for a predetermined fee and for any period of time, to service, maintain, repair, replace, or indemnify expenses for all or any part of the operational or structural components, appliances, or electrical, mechanical, plumbing, heating, cooling, or air-conditioning systems of residential property in the state which fails due to normal wear or tear or inherent defect.
“Residential service contract” also includes a contract which provides for the service, repair, replacement, or maintenance of property for , or damage resulting from power surges, roof leakage, and or accidental damage.
A service company that utilizes support services shall ensure the support services' compliance with the issuance, offer for sale, or sale of a service contract under this chapter.
A service company that utilizes support services shall ensure the support services’ compliance with the issuance, offer for sale, or sale of a service contract under this chapter.
A service company shall report to the commissioner within thirty calendar days any material change to the information submitted by the service company in the service company's initial license application, or license renewal application, including a change in the service company's contact information, ownership, officers, or directors directly responsible for the service company's service contract business, or any other change that substantially affects the service company's operations in the state.
A service company shall report to the commissioner within thirty calendar days any material change to the information submitted by the service company in the service company’s initial license application, or license renewal application, including a change in the service company’s contact information, ownership, officers, or directors directly responsible for the service company’s service contract business, or any other change that substantially affects the service company’s operations in the state.
A service company shall report to the commissioner any final disposition of an administrative action taken against the service company related to the service company's service contract business in another jurisdiction within thirty calendar days of final disposition of the administrative action.
A service company shall report to the commissioner any final disposition of an administrative action taken against the service company related to the service company’s service contract business in another jurisdiction within thirty calendar days of final disposition of the administrative action.
Section 523C.3, Code 2026, is amended by striking the section and inserting in lieu thereof the following;
Section 523C.3, Code 2026, is amended by striking the section and inserting in lieu thereof the following:
The name and address of the applicant's registered agent for service of process in Iowa, cf.
The name and address of the applicant’s registered agent for service of process in Iowa.
The legal name of all of the following;
d.
The legal name of all of the following:
An applicant whose home state is not this state shall provide a certification, dated not more than thirty calendar days after the date of submission of an application, from the applicant's home state that certifies the applicant is in good standing in the applicant's home state.
An applicant whose home state is not this state shall provide a certification, dated not more than thirty calendar days after the date of submission of an application, from the applicant’s home state that certifies the applicant is in good standing in the applicant’s home state.
A copy of each motor vehicle service contract form to be used, issued, or offered for sale in this state by the service c o m p a n y .
A copy of each motor vehicle service contract form to be used, issued, or offered for sale in this state by the service company.
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A copy of each residential service contract form to be used, issued, or offered for sale in this state by the service c o m p a n y .
A copy of each residential service contract form to be used, issued, or offered for sale in this state by the service company.
i .
i.
A national association o f insurance commissioners' biographical affidavit for the chief executive officer and chief financial officer of the service company, or for the individuals in equivalent positions.
A national association of insurance commissioners’ biographical affidavit for the chief executive officer and chief financial officer of the service company, or for the individuals in equivalent positions.
A list of any disciplinary actions taken against the service company, or any of the service company's owners who have an ownership stake in the service company of more than ten percent, officers, or directors directly responsible for the provider's service contract business, in the immediately preceding five consecutive years by a regulatory agency or state attorney general in any jurisdiction.
A list of any disciplinary actions taken against the service company, or any of the service company’s owners who have an ownership stake in the service company of more than ten percent, officers, or directors directly responsible for the provider’s service contract business, in the immediately preceding five consecutive years by a regulatory agency or state attorney general in any jurisdiction.
The application must be accompanied by a license fee in t h e a m o u n t o h u n d d o l l a r s .
The application must be accompanied by a license fee in the amount of five hundred dollars.
Fees collected under this section shall be deposited into the service company oversight fund as provided in section 2 3 C .
Fees collected under this section shall be deposited into the service company oversight fund as provided in section 523C.24.
2 4 .
An application for license renewal must include the information required for an initial license as described in section 5230.3, subsection 1, paragraphs through and a list of each service contract form the service company continues to use, offer for sale, or issue in the state, including the service contract form name, number, and the date t h e f o w a s l ar e v i s e d .
An application for license renewal must include the information required for an initial license as described in section 523C.3, subsection 1, paragraphs “a” through “f”, and a list of each service contract form the service company continues to use, offer for sale, or issue in the state, including the service contract form name, number, and the date the form was last revised.
a , A l i c e nr e n e w a l f t h e a m o u t w o hundred d o l l a r s .
a.
b» A fee in the amount of three percent of the aggregate amount of payments the service company received for the sale or issuance of residential service contracts in this state, less any refunds issued, during the immediately preceding calendar year, provided that such fee must be no greater than fifty t h o u s d o l l a r s .
A license renewal fee in the amount of two hundred dollars.
b.
A fee in the amount of three percent of the aggregate amount of payments the service company received for the sale or issuance of residential service contracts in this state, less any refunds issued, during the immediately preceding calendar year, provided that such fee must be no greater than fifty thousand dollars.
In a format prescribed by the commissioner, information regarding service contracts in this state for the service company in the immediately preceding calendar year itemized as f o l l o w s :
In a format prescribed by the commissioner, information regarding service contracts in this state for the service company in the immediately preceding calendar year itemized as follows:
( 1 )The number of motor vehicle service contracts issued.
(1) The number of motor vehicle service contracts issued.
6 ( 2 )The number of residential service contracts issued.
6 (2) The number of residential service contracts issued.
( 3 )The number of motor vehicle service contracts canceled.
(3) The number of motor vehicle service contracts canceled.
( 4 )The number of residential service contracts canceled.
(4) The number of residential service contracts canceled.
( 5 )The number of motor vehicle service contracts that expired.
(5) The number of motor vehicle service contracts that expired.
( 6 )The number of residential service contracts that expired.
(6) The number of residential service contracts that expired.
( 7 )The number of motor vehicle service contracts in effect on December 31 of the immediately preceding calendar year.
(7) The number of motor vehicle service contracts in effect on December 31 of the immediately preceding calendar year.
( 9 )The total dollar amount of motor vehicle service contract fees received by the service company.
(9) The total dollar amount of motor vehicle service contract fees received by the service company.
A service company whose license has expired shall not offer, extend, or renew a service contract until the service company's license has been renewed or the service company has been i s s u e new l i c e n s e .
A service company whose license has expired shall not offer, extend, or renew a service contract until the service company’s license has been renewed or the service company has been issued a new license.
Section 523C,7, Code 2026, is amended by striking the section and inserting in lieu thereof the following;
Section 523C.7, Code 2026, is amended by striking the section and inserting in lieu thereof the following:
5230.7 Disclosure to service contract holders — contract form — required provisions.
523C.7 Disclosure to service contract holders —— contract form —— required provisions.
Provides a receipt for the purchase of the service House File 2756f p.
Provides a receipt for the purchase of the service House File 2756, p.
7 c o n t r a c t t o the sc o n t r h o l d e r .
7 contract to the service contract holder.
b» Provides a complete sample copy of the service contract to the consumer prior to purchase.
b.
A service company may comply with this paragraph by providing the consumer with a complete electronic sample copy of the service contract, or directing the consumer to a complete sample copy of the service c o n t r a c t o n a n i n t e r n e t s i t e .
Provides a complete sample copy of the service contract to the consumer prior to purchase.
A service company may comply with this paragraph by providing the consumer with a complete electronic sample copy of the service contract, or directing the consumer to a complete sample copy of the service contract on an internet site.
a, A service contract must be written in clear, understandable language in at least eight point type.
a.
b, ( 1 )A service contract insured under a reimbursement insurance policy as provided in section 523C.5, subsection 1, must include a statement in substantially the following form;
A service contract must be written in clear, understandable language in at least eight point type.
b.
(1) A service contract insured under a reimbursement insurance policy as provided in section 523C.5, subsection 1, must include a statement in substantially the following form:
( 2 )A service contract insured under a reimbursement insurance policy must conspicuously state the name and address of the issuer of the reimbursement insurance policy for that service contract.
(2) A service contract insured under a reimbursement insurance policy must conspicuously state the name and address of the issuer of the reimbursement insurance policy for that service contract.
A claim against a reimbursement insurance policy must also include a claim for return of any refund due in accordance with paragraphs and » c , A s e r v i c e c o not i n s u runder a r e i m b u r s e m e n t insurance policy must contain a statement in substantially the following form:
A claim against a reimbursement insurance policy must also include a claim for return of any refund due in accordance with paragraphs “m” and “n”.
c.
A service contract not insured under a reimbursement insurance policy must contain a statement in substantially the following form:
e, A service contract must clearly state the total purchase price of the service contract and the terms under which the service contract is sold.
e.
The total purchase price shall not be required to be printed on the contract in advance and may be added t o t h e c o n t r the t i m e o f s a l e .
A service contract must clearly state the total purchase price of the service contract and the terms under which the service contract is sold.
If prior approval of repair work is required, a service contract must conspicuously describe the procedure for obtaining prior approval and for making a claim, including a toll-free telephone number for claim service, and the procedure for obtaining emergency repairs performed outside of normal b u s i n h o u r s .
The total purchase price shall not be required to be printed on the contract in advance and may be added to the contract at the time of sale.
g, A service contract must clearly state any waiting period applicable to coverage under the service contract.
f.
h, A service contract must clearly state the existence of any deductible amount.
If prior approval of repair work is required, a service contract must conspicuously describe the procedure for obtaining prior approval and for making a claim, including a toll-free telephone number for claim service, and the procedure for obtaining emergency repairs performed outside of normal business hours.
i, A service contract must specify the merchandise or services, or both, to be provided and any limitations, exceptions, or exclusions.
g.
j, A service contract must clearly state the conditions on which the use of substitute parts or services will be allowed.
A service contract must clearly state any waiting period applicable to coverage under the service contract.
Such conditions must comply with applicable state and federal l a w s .
h.
k.
A service contract must clearly state the existence of any deductible amount.
A service contract must clearly state any terms, restrictions, or conditions governing the transferability of t h s e r v ic o n t r a c t .
A service contract must clearly state the instructions for cancellation of the service contract by the service c o n t r a c t h oC a n c e l l a t i o n i n s t r u c t it h es m u s t i n c l u d e phone number, email address, or mailing address necessary for the cancellation of the service contract.
A service contract must specify the merchandise or services, or both, to be provided and any limitations, exceptions, or exclusions.
j.
A service contract must clearly state the conditions on which the use of substitute parts or services will be allowed.
Such conditions must comply with applicable state and federal laws.
k.
A service contract must clearly state any terms, restrictions, or conditions governing the transferability of the service contract.
l.
A service contract must clearly state the instructions for cancellation of the service contract by the service contract holder.
Cancellation instructions must include the phone number, email address, or mailing address necessary for the cancellation of the service contract.
( 1 )Telephone.
(1) Telephone.
The notice of cancellation must state the effective date o f the cancellation and the reason for the cancellation.
The notice of cancellation must state the effective date of the cancellation and the reason for the cancellation.
A penalty of ten percent of the original dollar amount o ft h r e f u s h a b ea d d t o t h r e f ue a cm o n i f t h e refund is not paid to the service contract holder within thirty calendar days.
A penalty of ten percent of the original dollar amount of the refund shall be added to the refund each month if the refund is not paid to the service contract holder within thirty calendar days.
n, (1) A service contract must permit the original service contract holder who purchased the contract to cancel the service contract within at least thirty calendar days of the effective date of the service contract, provided no claims have been paid under the service contract, or within a longer period of time as permitted under the service contract.
n.
(1) A service contract must permit the original service contract holder who purchased the contract to cancel the service contract within at least thirty calendar days of the effective date of the service contract, provided no claims have been paid under the service contract, or within a longer period of time as permitted under the service contract.
A penalty of ten percent of the original dollar amount of the refund shall be added to the refund each month if the refund is not paid to the service contract holder within thirty calendar days, unless the service contract holder fails to provide the information required by the service contract to complete the c a n c e l l a t i o n .
A penalty of ten percent of the original dollar amount of the refund shall be added to the refund each month if the refund is not paid to the service contract holder within thirty calendar days, unless the service contract holder fails to provide the information required by the service contract to complete the cancellation.
( 2 )If the service contract holder cancels the service contract in violation of subparagraph (1), the service company shall refund the service contract holder an amount equal to one hundred percent of the unearned purchase price paid, calculated on a pro rata basis based upon elapsed time or mileage, less any claims paid.
(2) If the service contract holder cancels the service contract in violation of subparagraph (1), the service company shall refund the service contract holder an amount equal to one hundred percent of the unearned purchase price paid, calculated on a pro rata basis based upon elapsed time or mileage, less any claims paid.
A service contract must set forth all obligations and duties of the service contract holder, including but not limited to the duty to protect against any further damage, and the obligation to follow an owner's manual and to perform, or have performed, all required service or maintenance.
A service contract must set forth all obligations and duties of the service contract holder, including but not limited to the duty to protect against any further damage, and the obligation to follow an owner’s manual and to perform, or have performed, all required service or maintenance.
p, A service contract must clearly state if the contract covers or excludes consequential damages and preexisting conditions, if applicable.
p.
A service contract may, but is not required to, cover damage resulting from rust, corrosion, or damage caused by a part or system not covered under the service c o n t r a c t .
A service contract must clearly state if the contract covers or excludes consequential damages and preexisting conditions, if applicable.
q, A service contract must clearly state the service call fee, if any, charged to the service contract holder.
A service contract may, but is not required to, cover damage resulting from rust, corrosion, or damage caused by a part or system not covered under the service contract.
r , A s e r v ic o n t rm u ss t a tt h n a ma n a d d r o f s the commissioner, the current toll-free telephone number of the House File 2756, p.
q.
11 division, and a statement that a consumer may file a complaint with the division, including by filing a complaint on the division's internet site.
A service contract must clearly state the service call fee, if any, charged to the service contract holder.
r.
A service contract must state the name and address of the commissioner, the current toll-free telephone number of the House File 2756, p.
11 division, and a statement that a consumer may file a complaint with the division, including by filing a complaint on the division’s internet site.
A service contract must state that if the claim covered under a residential service contract relates to the total loss of heating, cooling, or plumbing, or substantial loss of electrical service, and the claim being made by the service contract holder is essential to the health and safety of the service contract holder or, if applicable, the service contract holder's family, the service company shall ensure all of the following:
A service contract must state that if the claim covered under a residential service contract relates to the total loss of heating, cooling, or plumbing, or substantial loss of electrical service, and the claim being made by the service contract holder is essential to the health and safety of the service contract holder or, if applicable, the service contract holder’s family, the service company shall ensure all of the following:
(a) A list of all required repairs, replacements, or services, and the estimated cost to the service contract holder if k n o w n .
(a) A list of all required repairs, replacements, or services, and the estimated cost to the service contract holder if known.
(b) The primary reason the required repair, replacement, or service will take longer than three calendar days, including the status of all parts required for the repair, replacement, or s e r v i c e .
(b) The primary reason the required repair, replacement, or service will take longer than three calendar days, including the status of all parts required for the repair, replacement, or service.
(d) The telephone number of the service company in the e v e the s e r v ic o n t rholder or t h e c o m m i s wants n e r to make an inquiry concerning the claim, and a commitment by the service company to respond to an inquiry no later than one business day after the date the inquiry is received.
(d) The telephone number of the service company in the event the service contract holder or the commissioner wants to make an inquiry concerning the claim, and a commitment by the service company to respond to an inquiry no later than one business day after the date the inquiry is received.
S e c .
Sec.
8 NEW S E C T I 523C.8 Service contract f o r m s f e e s .
8.
NEW SECTION.
523C.8 Service contract forms —— fees.
12 service contract form for the sale of a service contract in t h i s s t a t e .
12 service contract form for the sale of a service contract in this state.
If a service company files a modified motor vehicle service contract form, and the only modification to the motor vehicle service contract form is information required by section 523C.7, subsection 2, paragraph ''V, the service company shall not be required to pay a fee for filing the modified motor v e h i c l e s e r v i c e c o n t r a c t f o r m .
If a service company files a modified motor vehicle service contract form, and the only modification to the motor vehicle service contract form is information required by section 523C.7, subsection 2, paragraph “r”, the service company shall not be required to pay a fee for filing the modified motor vehicle service contract form.
Notwithstanding section 523C.7, a service company may continue to use a service contract form that is noncompliant with this chapter until January 1, 2028, provided no changes a r m a d e t o the s e r v i c e c o n t r the s e r v c o n t r a c t form was filed with the division before January 1, 2027.
Notwithstanding section 523C.7, a service company may continue to use a service contract form that is noncompliant with this chapter until January 1, 2028, provided no changes are made to the service contract form and the service contract form was filed with the division before January 1, 2027.
The commissioner may, at the commissioner's discretion and without advance notice or hearing, immediately suspend a service company's license if the commissioner finds that any of the following are true:
The commissioner may, at the commissioner’s discretion and without advance notice or hearing, immediately suspend a service company’s license if the commissioner finds that any of the following are true:
b, A proceeding for receivership, conservatorship, rehabilitation, or other delinquency proceeding regarding the service company has been commenced in any state.
b.
c» The financial condition or business practices of the service company otherwise pose an imminent threat to the public health, safety, or welfare of the residents of this state.
A proceeding for receivership, conservatorship, rehabilitation, or other delinquency proceeding regarding the service company has been commenced in any state.
c.
The financial condition or business practices of the service company otherwise pose an imminent threat to the public health, safety, or welfare of the residents of this state.
House Pile 2756, p.
House File 2756, p.
The service company, without just cause, refused to perform, or negligently or incompetently performed, a service required to be performed under the service company's service contracts and the refusal, or negligent or incompetent performance, has occurred with such frequency as determined by the commissioner, as to indicate the general business practices of the service company.
The service company, without just cause, refused to perform, or negligently or incompetently performed, a service required to be performed under the service company’s service contracts and the refusal, or negligent or incompetent performance, has occurred with such frequency as determined by the commissioner, as to indicate the general business practices of the service company.
The service company failed to maintain a corporate certificate of good standing pursuant to section 523C.3, s u b s e c t i o n 1 .
The service company failed to maintain a corporate certificate of good standing pursuant to section 523C.3, subsection 1.
The service company provided incorrect, misleading, incomplete, or materially untrue information in the service company's license application.
The service company provided incorrect, misleading, incomplete, or materially untrue information in the service company’s license application.
, An owner who has an ownership stake in the service company of more than ten percent, an officer, or a director directly responsible for the business of the service company has been convicted of a criminal offense involving dishonesty or a false statement, including but not limited to fraud, theft, misappropriation of funds, falsification of documents.
l.
House File 2756, p.
An owner who has an ownership stake in the service company of more than ten percent, an officer, or a director directly responsible for the business of the service company has been convicted of a criminal offense involving dishonesty or a false statement, including but not limited to fraud, theft, misappropriation of funds, falsification of documents, House File 2756, p.
0.
o.
The service company has refused to be examined or to produce the service company's accounts, records, or files for examination, or any individual responsible for the conduct of the affairs of the service company has refused to provide information with respect to the service company's affairs or has refused to perform any other legal obligation as to an e x a m i n a t i o n .
The service company has refused to be examined or to produce the service company’s accounts, records, or files for examination, or any individual responsible for the conduct of the affairs of the service company has refused to provide information with respect to the service company’s affairs or has refused to perform any other legal obligation as to an examination.
5230.13 Prohibited acts or practices — penalty — violations — contracts voided.
523C.13 Prohibited acts or practices —— penalty —— violations —— contracts voided.
A service company, or the service company's support services, that offers service contracts for sale in this state House File 2756, p.
A service company, or the service company’s support services, that offers service contracts for sale in this state House File 2756, p.
The service company's affiliation with a motor vehicle manufacturer or importer.
The service company’s affiliation with a motor vehicle manufacturer or importer.
A motor vehicle service contract holder's coverage under a motor vehicle service contract, including statements suggesting that the service contract holder must purchase a new service contract in order to maintain coverage under the existing service contract or warranty.
A motor vehicle service contract holder’s coverage under a motor vehicle service contract, including statements suggesting that the service contract holder must purchase a new service contract in order to maintain coverage under the existing service contract or warranty.
Descriptions of the service contract as a ^^policy".
Descriptions of the service contract as a “policy”.
A licensed service company which offers service contracts for sale in this state shall not, directly or indirectly, do any of the following;
A licensed service company which offers service contracts for sale in this state shall not, directly or indirectly, do any of the following:
Fail to attempt, in good faith, to effectuate the prompt, fair, and equitable resolution of a claim made under a service c o n t r a c t .
Fail to attempt, in good faith, to effectuate the prompt, fair, and equitable resolution of a claim made under a service contract.
Create or use any advertising that does not include the name of the licensed service company or direct consumers to an internet site where the name of the licensed service company c a b e f o u n d .
Create or use any advertising that does not include the name of the licensed service company or direct consumers to an internet site where the name of the licensed service company can be found.
Use, offer for sale, or issue in this state a service contract form that has not been submitted as part of a license application pursuant to section 523C.3, as part of a license application renewal pursuant to section 523C.4, or submitted to the division during the service company's current license period.
Use, offer for sale, or issue in this state a service contract form that has not been submitted as part of a license application pursuant to section 523C.3, as part of a license application renewal pursuant to section 523C.4, or submitted to the division during the service company’s current license period.
House Pile 2756, p.
House File 2756, p.
After a hearing, if the cominissioner finds that a person violated this chapter or a rule adopted under this chapter, the commissioner may order the person to cease and desist from the violation and may order the person to pay a civil penalty of not more than one thousand dollars for each violation, not to exceed an aggregate of ten thousand dollars, unless the person knew or reasonably should have known the person was in violation of this chapter, in which case the civil penalty shall be no more than five thousand dollars for each violation, not to exceed an aggregate of fifty thousand dollars in any one consecutive six-month period.
After a hearing, if the commissioner finds that a person violated this chapter or a rule adopted under this chapter, the commissioner may order the person to cease and desist from the violation and may order the person to pay a civil penalty of not more than one thousand dollars for each violation, not to exceed an aggregate of ten thousand dollars, unless the person knew or reasonably should have known the person was in violation of this chapter, in which case the civil penalty shall be no more than five thousand dollars for each violation, not to exceed an aggregate of fifty thousand dollars in any one consecutive six-month period.
Any civil penalties collected under this subsection shall be deposited as provided in section 0 5 .
Any civil penalties collected under this subsection shall be deposited as provided in section 505.7.
7 .
5.
A violation o f this section or section 523C.7 constitutes an unlawful practice pursuant to section 714.16.
A violation of this section or section 523C.7 constitutes an unlawful practice pursuant to section 714.16.
A service contract issued or sold in this state by a service company that was not licensed as a service company at t h e t i m e t h e s e r v i c e c o n t ror s o ls h a l l void a n u n e n f o r c e a b l e .
A service contract issued or sold in this state by a service company that was not licensed as a service company at the time the service contract was issued or sold shall be void and unenforceable.
Section 523C.22, Code 2026, is amended to read as f o l l o w s :
Section 523C.22, Code 2026, is amended to read as follows:
The written explanation must include the process for filing a complaint with the division, including the division's internet site for accessing the complaint form.
The written explanation must include the process for filing a complaint with the division, including the division’s internet site for accessing the complaint form.
Section 523C.23, subsection 1, paragraph b.
Section 523C.23, subsection 1, paragraph b, Code 2026, is amended by adding the following new subparagraphs:
Code 2026, is amended by adding the following new subparagraphs:
NEW SUBPARAGRAPH .
NEW SOBPARAGRAPH.
17 affirmations, subpoena witnesses, compel witnesses' attendance, take evidence, and require the production of any records which the commissioner deems relevant or material to the investigation or proceeding.
17 affirmations, subpoena witnesses, compel witnesses’ attendance, take evidence, and require the production of any records which the commissioner deems relevant or material to the investigation or proceeding.
NEW SUBPARAGRAPH.
NEW SUBPARAGRAPH .
(5) Conduct an investigation of a suspected violation of this chapter and enforce the provisions of, and impose any penalty or remedy authorized by, this chapter against any person who is under investigation for, or charged with, a violation of this chapter even if the person's license has been surrendered or has lapsed by operation of law.
(5) Conduct an investigation of a suspected violation of this chapter and enforce the provisions of, and impose any penalty or remedy authorized by, this chapter against any person who is under investigation for, or charged with, a violation of this chapter even if the person’s license has been surrendered or has lapsed by operation of law.
Section 5230.23, subsection 1, paragraph c.
Section 523C.23, subsection 1, paragraph c, Code 2026, is amended by striking the paragraph.
Code 2026, is amended by striking the paragraph.
Notwithstanding chapter 22, the commissioner shall maintain the confidentiality of information submitted to the division or obtained by the division in the course of an investigation, examination, or inquiry pursuant to this chapter or the commissioner's licensing authority, including all notes, work papers, or other documents.
Notwithstanding chapter 22, the commissioner shall maintain the confidentiality of information submitted to the division or obtained by the division in the course of an investigation, examination, or inquiry pursuant to this chapter or the commissioner’s licensing authority, including all notes, work papers, or other documents.
Notwithstanding subsection 1, the commissioner may publish on the division's internet site the name, physical address, telephone number, and license status of any service company submitted to the division or obtained by the division in the course of an investigation, examination, or inquiry pursuant to this chapter.
Notwithstanding subsection 1, the commissioner may publish on the division’s internet site the name, physical address, telephone number, and license status of any service company submitted to the division or obtained by the division in the course of an investigation, examination, or inquiry pursuant to this chapter.
NEW PARAGRAPH, t.
NEW PARAGRAPH .
It is an unlawful practice for a person t ov i o l a t e s e5 2 3 C .
t.
5 2 3 C .
It is an unlawful practice for a person to violate section 523C.7 or 523C.13.
1 3 .
This Act takes effect January 1, P A G R A S S L E Y A M S I N C L i Speaker of H o u s e P r e s i d e n teS e n a t e I hereby certify that this bill originated in the House and is known as House File 2756, Ninety-first General Assembly.
This Act takes effect January 1, 2027.
m e g bn e l s o n Chief G^erk of the House Approved 2 0 2 6 KIM REFOLDS G o v e r n o r
______________________________ ______________________________ PAT GRASSLEY AMY SINCLAIR Speaker of the House President of the Senate I hereby certify that this bill originated in the House and is known as House File 2756, Ninety-first General Assembly.
______________________________ MEGHAN NELSON Chief Clerk of the House Approved _______________, 2026 ______________________________ KIM REYNOLDS Governor
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Amendments

1 amendment

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Action History

  1. Signed by Governor.

  2. Reported correctly enrolled, signed by Speaker and President, and sent to Governor.

  3. Message from Senate.

  4. Immediate message.

  5. Passed Senate, yeas 46, nays 0.

  6. Substituted for SF 2505.

  7. Attached to SF 2505.

  8. Read first time, passed on file.

  9. Message from House.

  10. Immediate message.

  11. Passed House, yeas 92, nays 0.

  12. Amendment H-8324 adopted.

  13. Amendment H-8324 filed.

  14. Introduced, placed on Ways and Means calendar.

Sponsors

  • COMMITTEE ON WAYS AND MEANS · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 149 not signed on

Sponsors (1)

  • COMMITTEE ON WAYS AND MEANS

Co-sponsors (0)

None.

Not signed on (149)

149 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Shall the bill pass?

Passed 46 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Republican 31002
Democrat 16002
Total 47004
% of votes cast 92%0%0%8%
How each member voted (51)
Member Party Vote
Art Staed Democrat Yea
Catelin Drey Democrat Yea
Cindy Winckler Democrat Yea
Herman C. Quirmbach Democrat Yea
Izaah Knox Democrat Yea
Janet Petersen Democrat Yea
Janice Weiner Democrat Yea
Liz Bennett Democrat Yea
Matt Blake Democrat Yea
Mike Zimmer Democrat Yea
Molly Donahue Democrat Not Voting
Renee Hardman Democrat Yea
Sarah Trone Garriott Democrat Yea
Sarah Trone Garriott Democrat Yea
Thomas Townsend Democrat Yea
Tony Bisignano Democrat Yea
William A. Dotzler Jr. Democrat Yea
Zach Wahls Democrat Not Voting
Adrian Dickey Republican Yea
Amy Sinclair Republican Yea
Annette Sweeney Republican Yea
Carrie Koelker Republican Yea
Charlie McClintock Republican Yea
Cherielynn Westrich Republican Yea
Dan Dawson Republican Yea
Dan Zumbach Republican Yea
Dave Sires Republican Yea
David D. Rowley Republican Not Voting
Dawn Driscoll Republican Yea
Dennis Guth Republican Yea
Doug Campbell Republican Yea
Jack Whitver Republican Yea
Jason Schultz Republican Yea
Jeff Reichman Republican Yea
Jeff Taylor Republican Yea
Jesse Green Republican Yea
Julian B. Garrett Republican Not Voting
Kara Warme Republican Yea
Ken Rozenboom Republican Yea
Kerry Gruenhagen Republican Yea
Kevin Alons Republican Yea
Lynn Evans Republican Yea
Mark Costello Republican Yea
Mark S. Lofgren Republican Yea
Mike Bousselot Republican Yea
Mike Klimesh Republican Yea
Mike Pike Republican Yea
Sandy Salmon Republican Yea
Scott Webster Republican Yea
Tim Kraayenbrink Republican Yea
Tom Shipley Republican Yea

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Subjects

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Frequently asked questions

Who sponsors HF 2756?
HF 2756 is sponsored by COMMITTEE ON WAYS AND MEANS.
What is the current status of HF 2756?
This bill has been enacted into law. Introduced April 06, 2026. Enacted.
Where can I track HF 2756?
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