Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateIowaEnacted
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.
COMMITTEE ON WAYS AND MEANS
HF 2756 status: Enacted — Signed by Governor (updated Jun 2, 2026).
Source
LegiScan
Confidence
High
Analysis basis
LegiScan full bill text
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
78OUT OF 100
Score:78/100 civic fit
Risk:Low Risk
Impact:Moderate Impact 65/100
Constitutionality95%
Bipartisan80%
Public opinion75%
Bill summary
What changes
The bill updates licensing, reporting, and consumer protection requirements for companies selling motor vehicle and residential service contracts in Iowa.
Who is affected
Service companies, third-party administrators, and Iowa residents who purchase home or motor vehicle service contracts.
Requirements and enforcement
Companies must be licensed, file contract forms, report material business changes, and adhere to specific cancellation/refund rules.
Costs and funding
Fees include a $500 initial license fee, $200 renewal fee, 3% fee on aggregate residential contract payments (capped at $50,000), and $35 per contract form filing fee.
When it takes effect
Effective January 1, 2027.
Potential benefits
Provides enhanced consumer protections regarding timely repairs for essential systems, standardizes cancellation procedures, and strengthens the Commissioner's enforcement tools.
Risks and tradeoffs
Potential for increased costs to companies to be passed on to consumers, and high administrative penalties for non-compliance.
What is still unknown
The extent to which the Commissioner will utilize discretionary authority to publish investigation data.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Positive outlook
70%
Benefits
- Establishes clear licensing standards for service contract providers.
- Creates standardized definitions to reduce marketplace confusion.
- Imposes administrative fees that fund regulatory oversight.
Risks
- Adds compliance costs for smaller service companies.
- Requires annual reporting of detailed business data.
- Mandates license renewal fees and potential reinstatement penalties.
Society
Positive outlook
75%
Benefits
- Mandates clearer language in service contracts.
- Requires timely communication for essential service failures.
- Provides robust cancellation and refund protections for consumers.
Risks
- Allows for administrative fees on refunds in certain circumstances.
- Permits the use of substitute parts under stated contract terms.
- Requires consumers to follow specific maintenance obligations.
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
Positive outlook
85%
Benefits
- Expands the Commissioner's authority to subpoena witnesses and documents.
- Grants power to investigate even after a license has lapsed.
- Requires disclosure of criminal prosecutions involving company leadership.
Risks
- Grants the Commissioner broad discretion for immediate license suspension.
- Limits public access to investigation documents through confidentiality provisions.
- Potentially opaque decision-making regarding data publication.
Public Health & Safety
Positive outlook
80%
Benefits
- Ensures emergency repairs for essential heating/cooling/plumbing occur within 48 hours.
- Mandates status reports for delays in critical home systems.
- Empowers the state to act against companies that pose an imminent threat.
Risks
- Does not guarantee completion time for non-essential repairs.
- Essential nature of repairs is defined by the service contract terms.
- Dependent on the commissioner's enforcement frequency.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
LegiScan
Official bill text or data from LegiScan.
Confidence
High
Information is complete and verified.
Analysis basis
LegiScan full bill text
Source used for this bill's analysis.
Source note
Consumer refunds are subject to reasonable administrative fees up to 10%, which may reduce actual return amounts.
Analysis scope
The bill amends existing Iowa Code Chapter 523C, which serves as the legal baseline.
04
Where it stands
Official recordSigned by Governor.
- IntroducedComplete
- CommitteeComplete
- Chamber votesComplete
- Final agreementComplete
- GovernorComplete
- EnactedComplete
05
How it affects your district
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06
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