House File 593 - Introduced



                                       HOUSE FILE       
                                       BY  WINDSCHITL


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act prohibiting agreements not to compete for health care
  2    professionals in the state.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2485YH 83
  5 pf/nh/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  147.140  AGREEMENTS NOT TO
  1  2 COMPETE == VOID.
  1  3    Any contract or agreement which creates or establishes the
  1  4 terms of employment, partnership, or any other form of
  1  5 professional relationship with a person licensed under the
  1  6 provisions of this subtitle which includes any restriction of
  1  7 the right of the person to practice the profession for which
  1  8 the person is licensed in any geographic area or for a defined
  1  9 period of time upon the termination of the contract or
  1 10 agreement, is void and unenforceable with respect to the
  1 11 restrictive provision.  This limitation shall not render void
  1 12 and unenforceable other provisions of the contract or
  1 13 agreement that are otherwise valid and enforceable.
  1 14                           EXPLANATION
  1 15    This bill relates to agreements not to compete relating to
  1 16 certain health=related professions.  The bill provides that a
  1 17 contract or agreement that creates or establishes the terms of
  1 18 a professional relationship with a licensed health care
  1 19 professional that includes any restriction of the right of the
  1 20 person to practice the profession for which the person is
  1 21 licensed in any geographic area or for a defined period of
  1 22 time upon the termination of the contract or agreement is void
  1 23 and unenforceable with respect to the restrictive provision.
  1 24 The bill does provide that the limitation regarding such
  1 25 restrictions does not render void or unenforceable other
  1 26 provisions of the contract or agreement that are otherwise
  1 27 valid and enforceable.
  1 28 LSB 2485YH 83
  1 29 pf/nh/14