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

HSB 517 requires service companies selling motor vehicle or residential service contracts in Iowa to obtain and maintain a state license. To qualify, companies must submit detailed ownership and officer information, pay application fees ($500 plus $35 per contract form), and verify key personnel through state-approved processes. Licensed companies must report ownership changes, disciplinary actions, or criminal prosecutions within 30 days and renew licenses annually. Failure to comply may result in civil penalties, with fees funding a dedicated oversight fund.