Senate Study Bill 3139 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BROWN) A BILL FOR An Act relating to residential and motor vehicle service 1 contracts and licenses. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6250XC (2) 90 nls/ko

S.F. _____ Section 1. Section 523C.4, subsection 2, Code 2024, is 1 amended to read as follows: 2 2. An application for renewal shall include the information 3 required for an initial license as described in section 523C.3, 4 subsection 1 , paragraphs “a” through “e” , and, if applicable, 5 a list of each service contract form the service company 6 continues to use and issue in the state, including the service 7 contract form name, number, and the date the form was last 8 revised . 9 Sec. 2. Section 523C.4, subsection 3, paragraph c, Code 10 2024, is amended to read as follows: 11 c. If applicable, a fee in the amount of thirty-five dollars 12 for each new motor vehicle service contract form submitted 13 with the renewal application pursuant to subsection 2 , and as 14 provided in section 523C.3, subsection 1 , paragraph “f” 15 filed with the commissioner since the license was last issued, 16 and for each motor vehicle service contract form the service 17 company continues to use and issue in the state . 18 Sec. 3. Section 523C.7, subsection 1, Code 2024, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . d. Files the service contract form with the 21 commissioner. A service company shall notify the commissioner 22 of any material changes to a service contract form that has 23 been filed prior to using the service contract in this state. 24 Sec. 4. Section 523C.7, subsection 2, paragraph l, Code 25 2024, is amended by adding the following new subparagraph: 26 NEW SUBPARAGRAPH . (3) A service company shall accept 27 cancellations of a service contract from a contract holder 28 pursuant to subparagraph (1) by telephone, electronic mail, 29 mail, or any other cost-effective and accessible method of 30 communication. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to residential and motor vehicle service 35 -1- LSB 6250XC (2) 90 nls/ko 1/ 2

S.F. _____ contracts and licenses. 1 Under current law, an application for renewal of a service 2 company license requires a copy of each motor vehicle service 3 contract form and each residential service contract form to 4 be used or issued in this state, if applicable. Under the 5 bill, an application for renewal of a service company license 6 requires a list of each service contract form the service 7 company continues to use and issue in the state, including the 8 service contract form name, number, and the date the form was 9 last revised. 10 Current law requires an application for renewal of a service 11 company license be accompanied by a fee in the amount of $35 12 for each motor vehicle service contract form submitted with 13 the renewal application. The bill requires an application for 14 renewal of a service company license be accompanied by a fee in 15 the amount of $35 for each new motor vehicle service contract 16 form filed with the commissioner since the license was last 17 issued, and for each motor vehicle service contract form the 18 service company continues to use and issue in the state. 19 Under the bill, a service contract shall not be issued, sold, 20 or offered for sale in the state unless the service company 21 files the service contract form with the commissioner. A 22 service company shall notify the commissioner of any material 23 changes to a service contract form that has been filed prior 24 to using the service contract. 25 The bill requires a service company that issues, sells, 26 or offers for sale a service contract in the state to accept 27 cancellations of a service contract from a contract holder by 28 telephone, electronic mail, mail, or any other cost-effective 29 and accessible method of communication. 30 -2- LSB 6250XC (2) 90 nls/ko 2/ 2