House Study Bill 24 - IntroducedA Bill ForAn Act 1relating to health care employment agencies, health care
2employment agency workers, and health care entities, and
3including retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 135Q.1, subsection 2, Code 2023, is
2amended to read as follows:
   32.  “Direct services” means services provided to consumers
4through person-to-person contact.
   5a.  “Direct services” includes services performed by a
6registered nurse, a licensed practical nurse, a certified nurse
7aide, a certified medication aide, or a medication manager.

   8b.  “Direct services” excludes services all of the following:
   9(1)   Servicesperformed by persons in a health care entity
10setting that do not involve the provision of any service or
11treatment to a consumer of a health care entity. “Direct
12services”
does not include the

   13(2)  Janitorial, housekeeping, laundry, and meal preparation
14services.
   15(3)   Thepractice of medicine and surgery or osteopathic
16medicine and surgery by an individual licensed under chapter
17148 or the.
   18(4)   Thepractice of nursing by an advanced registered nurse
19practitioner or an advanced practice registered nurse licensed
20under chapter 152 or 152E.
   21(5)  The practice of medicine by an individual licensed under
22chapter 148C to practice as a physician assistant under the
23supervision of one or more physicians.
   24(6)  The practice of physical therapy by an individual
25licensed under chapter 148A.
   26(7)  The practice of occupational therapy by an individual
27licensed under chapter 148B.
   28(8)  The practice of speech pathology or audiology by an
29individual licensed under chapter 154F.
30   Sec. 2.  Section 135Q.2, subsection 3, Code 2023, is amended
31to read as follows:
   323.  a.  A health care employment agency shall not do any of
33the following:
   34(1)  Restrict in any manner the employment opportunities
35of an agency worker by including a non-compete clause in any
-1-1contract with an agency worker or health care entity.
   2(2)  In any contract with an agency worker or health care
3entity, require payment of liquidated damages, employment fees,
4or other compensation if the agency worker is subsequently
5hired as a permanent employee of the health care entity.
   6b.  This subsection shall not apply to a contract between
7a health care employment agency and an agency worker or a
8health care entity if the contract meets all of the following
9criteria:

   10(1)  The contract is entered into for the purpose of placing
11an agency worker the health care employment agency assisted in
12obtaining authorization to work in the United States.
   13(2)  The contract contains an initial duration term of
14not less than twenty-four months and a total duration term,
15including any renewals or extensions, of not more than
16thirty-six months.
   17(3)  The contract requires the agency worker to work for
18a single health care entity for the entire duration of the
19contract.
   20c.  Any contract that violates this subsection shall be
21unenforceable in court.
22   Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
23retroactively to any contract between a health care employment
24agency and an agency worker or health care entity referred to
25under section 135Q.2 that was entered into or executed on or
26after January 1, 2019.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30This bill relates to health care employment agencies, health
31care employment agency workers, and health care entities
32under Code chapter 135Q (health care employment agencies and
33workers).
   34The bill specifically includes as “direct services” those
35services performed by a registered nurse, a licensed practical
-2-1nurse, a certified nurse aide, a certified medication aide,
2and a medication manager. The bill specifically excludes
3as “direct services”, in addition to current exclusions,
4janitorial, housekeeping, laundry, and meal preparation
5services; the practice of medicine by an individual licensed
6under Code chapter 148C to practice as a physician assistant
7under the supervision of one or more physicians (physician
8assistants); the practice of physical therapy by an individual
9licensed under Code chapter 148A (physical therapy); the
10practice of occupational therapy by an individual licensed
11under Code chapter 148B (occupational therapy); and the
12practice of speech pathology or audiology by an individual
13licensed under Code chapter 154F (speech pathology and
14audiology).
   15The bill also excludes from application of the provisions of
16Code section 135Q.2, relating to a contract between a health
17care employment agency and an agency worker or health care
18entity, a contract between a health care employment agency
19and an agency worker or health care entity if the contract
20is entered into for the purpose of placing an agency worker
21the health care employment agency assisted in obtaining
22authorization to work in the United States; contains an initial
23duration term of not less than 24 months and a total duration
24term, including any renewals or extensions, of not more than
2536 months; and requires the agency worker to work for a single
26health care entity for the entire duration of the contract.
   27The bill applies retroactively to any contract between a
28health care employment agency and an agency worker or health
29care entity referred to under Code section 135Q.2 that was
30entered into or executed on or after January 1, 2019.
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