The Iowa Senate is considering a bill that would bar insurers from requiring repairers to buy parts and supplies from specified sellers. Sen. Steve Warnstadt (D-Sioux City) introduced Senate File 2326, which addresses shops that perform repairs on behalf of the insurer to the property of an insured. The bill defines such requirements of insurers or their agents as prohibited unfair methods of competition and unfair or deceptive acts or practices in the business of insurance.

Violations of the bill would be punishable by civil penalties and may result in the suspension or revocation of the violator’s license.

The Iowa Collision Repair Association (ICRA) is sponsoring Senate Study Bill 3261 and asking for the Iowa law to be changed so collision repairers can be reimbursed for sales tax on paint and material.

The bill amends the definition of “retail sale” to include paint and vehicle body materials that are applied to or consumed during a motor vehicle collision repair if the charge for each of these items is separately stated. A repairer purchasing these items would then be exempt from the sales tax because they are considered purchased for resale.