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SF 2505IOWASession 2025-2026State BillSigned into law

Enacted

Iowa regulates service companies and contracts for motor vehicles and homes with mandatory licensing

Original title: 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.(Formerly SF 2445 , SSB 3057 .)

Last action · June 2, 2026: Signed by Governor . H.J. 1168 .

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Does

Iowa requires all providers of motor vehicle and residential service contracts to obtain an annual license from the insurance commissioner starting January 1, 2027, and establishes consumer protections, disclosure rules, and civil penalties for deceptive practices.

Why it matters

Contract holders gain specific cancellation windows, mandatory refund timelines, and direct claim rights against reimbursement insurance policies if service companies fail to pay within sixty days.

Background

Senate File 2505 originates from predecessor bills SF 2445 and SSB 3057 in the Iowa General Assembly. context
Chapter 523C of the Iowa Code governs the regulation of service companies and motor vehicle and residential service contracts in the state. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

service contract holders

Service contract holders receive mandatory contract disclosures, guaranteed cancellation and refund rights, and specific timelines for essential home system repairs.

Directly affected

service companies

Service companies must obtain and annually renew licenses, pay application and percentage-based fees, maintain compliance records, and adhere to prohibited marketing practices.

Directly affected

support services

Entities providing marketing, administrative, or technical support are exempt from direct licensing, but utilizing service companies must ensure their compliance.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who must be licensed under this law?

Any person or business entity that directly or indirectly issues, offers for sale, or sells a motor vehicle service contract or a residential service contract in Iowa must be licensed as a service company. Persons providing support services are exempt from licensing.

Can I cancel a service contract after purchasing it?

Yes. Original contract holders are permitted to cancel within at least 30 calendar days of the effective date if no claims have been paid, entitling them to a full refund of the purchase price.

What happens if a service company fails to pay a claim covered by insurance?

If a service company fails to pay or provide service on a claim within 60 days after proof of loss has been filed under a , the contract holder is entitled to make a claim directly against the reimbursement insurance policy.

What else do you want to know?

News Coverage

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Votes, people, money & the original source

Where This Stands

Current status: Signed into law.

Procedural history

47 actions

Jun 2, 2026HouseEnrolled
Signed by Governor . H.J. 1168 .
May 18, 2026House
Reported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 1164 .
May 2, 2026House
Message from Senate. H.J. 1118 .
May 2, 2026Senate
Immediate message. S.J. 983 .
May 2, 2026SenateFloor
Passed Senate , yeas 46, nays 0. S.J. 983 .
May 2, 2026Senate
Substituted for SF 2505 . S.J. 982 .

Show 41 earlier actions

May 2, 2026Senate
Attached to SF 2505 . S.J. 982 .
May 2, 2026Senate
Withdrawn. S.J. 983 .
May 2, 2026Senate
HF 2756 substituted. S.J. 982 .
May 2, 2026Senate
Attached to HF 2756 . S.J. 982 .
May 1, 2026Senate
Committee report approving bill, renumbered as SF 2505 . S.J. 960 .
May 1, 2026Senate
Committee report, approving bill. S.J. 960 .
May 1, 2026SenateIntroduced
Introduced, placed on Ways and Means calendar. S.J. 957 .
Apr 9, 2026SenateIntroduced
Read first time, passed on file. S.J. 764 .
Apr 9, 2026House
Message from House. S.J. 764 .
Apr 9, 2026House
Withdrawn. H.J. 870 .
Apr 8, 2026House
Immediate message. H.J. 863 .
Apr 8, 2026HouseFloor
Passed House , yeas 92, nays 0. H.J. 849 .
Apr 8, 2026HouseFloor
Amendment H-8324 adopted. H.J. 849 .
Apr 8, 2026Iowa Legislature
Subcommittee recommends passage.
Apr 7, 2026House
Amendment H-8324 filed. H.J. 838 .
Apr 6, 2026HouseIntroduced
Introduced, placed on Ways and Means calendar. H.J. 810 .
Apr 6, 2026Iowa Legislature
Committee report approving bill, renumbered as HF 2756 .
Apr 6, 2026Senate
Subcommittee Meeting: 04/08/2026 12:30PM Senate Lounge.
Apr 1, 2026House
Committee vote: Yeas, 25. Nays, 0. H.J. 803 .
Apr 1, 2026House
Committee report, recommending amendment and passage. H.J. 803 .
Mar 11, 2026Iowa Legislature
Subcommittee recommends passage.
Mar 5, 2026House
Subcommittee Meeting: 03/11/2026 8:15AM House Lounge.
Mar 4, 2026House
Subcommittee: Vondran, Judge and Lundgren. H.J. 570 .
Feb 24, 2026HouseIntroduced
Introduced, referred to Ways and Means. H.J. 401 .
Feb 24, 2026Senate
Subcommittee: Bousselot, Koelker, and Winckler. S.J. 393 .
Feb 24, 2026SenateCommittee
Referred to Ways and Means. S.J. 377 .
Feb 24, 2026Iowa Legislature
Committee report approving bill, renumbered as HF 2714 .
Feb 23, 2026Senate
Committee report, approving bill. S.J. 362 .
Feb 23, 2026SenateIntroduced
Introduced, placed on calendar. S.J. 358 .
Feb 19, 2026Iowa Legislature
Committee report approving bill, renumbered as SF 2445 .
Feb 19, 2026Iowa Legislature
Subcommittee recommends passage.
Feb 18, 2026Iowa Legislature
Subcommittee Meeting: 02/19/2026 11:00AM Room 315.
Feb 17, 2026Iowa Legislature
Subcommittee reassigned: Bousselot, Blake, and Dickey.
Feb 16, 2026House
Committee vote: Yeas, 22. Nays, 0. Excused, 1. H.J. 313 .
Feb 16, 2026House
Committee report, recommending amendment and passage. H.J. 313 .
Jan 21, 2026Iowa Legislature
Subcommittee: Bousselot, Blake, and Rowley.
Jan 21, 2026Iowa LegislatureIntroduced
Introduced, referred to Commerce.
Jan 15, 2026Iowa Legislature
Subcommittee recommends passage.
Jan 14, 2026Iowa Legislature
Subcommittee Meeting: 01/15/2026 12:00PM RM 305.
Jan 13, 2026House
Subcommittee: Vondran, Wills, J. and Zabner. H.J. 70 .
Jan 13, 2026HouseIntroduced
Introduced, referred to Commerce. H.J. 64 .

Version history

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Lobbying Activity

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Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

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