A bill for an act relating to licensing of service companies, motor vehicle service contracts, and residential service contracts, and providing civil penalties.

HF 2714 requires service companies selling motor vehicle or residential service contracts in Iowa to obtain and maintain a state license. It directly affects companies offering these contracts - covering home maintenance (like HVAC or appliances) or vehicle protection plans - to consumers. Key provisions include mandatory licensing, reporting ownership changes or disciplinary actions within 30 days, and defining terms like "service contract holder" and "substitute part" (e.g., aftermarket car parts). The bill explicitly states these contracts are not insurance, avoiding overlap with insurance regulations. Companies must submit detailed applications, including biographical affidavits for executives and copies of contract forms, with a $500 license fee.