House Study Bill 24 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF INSPECTIONS AND APPEALS BILL) A BILL FOR An Act relating to health care employment agencies, health care 1 employment agency workers, and health care entities, and 2 including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1197XD (6) 90 pf/rh

S.F. _____ H.F. _____ Section 1. Section 135Q.1, subsection 2, Code 2023, is 1 amended to read as follows: 2 2. “Direct services” means services provided to consumers 3 through person-to-person contact. 4 a. “Direct services” includes services performed by a 5 registered nurse, a licensed practical nurse, a certified nurse 6 aide, a certified medication aide, or a medication manager. 7 b. “Direct services” excludes services all of the following: 8 (1) Services performed by persons in a health care entity 9 setting that do not involve the provision of any service or 10 treatment to a consumer of a health care entity. “Direct 11 services” does not include the 12 (2) Janitorial, housekeeping, laundry, and meal preparation 13 services. 14 (3) The practice of medicine and surgery or osteopathic 15 medicine and surgery by an individual licensed under chapter 16 148 or the . 17 (4) The practice of nursing by an advanced registered nurse 18 practitioner or an advanced practice registered nurse licensed 19 under chapter 152 or 152E . 20 (5) The practice of medicine by an individual licensed under 21 chapter 148C to practice as a physician assistant under the 22 supervision of one or more physicians. 23 (6) The practice of physical therapy by an individual 24 licensed under chapter 148A. 25 (7) The practice of occupational therapy by an individual 26 licensed under chapter 148B. 27 (8) The practice of speech pathology or audiology by an 28 individual licensed under chapter 154F. 29 Sec. 2. Section 135Q.2, subsection 3, Code 2023, is amended 30 to read as follows: 31 3. a. A health care employment agency shall not do any of 32 the following: 33 (1) Restrict in any manner the employment opportunities 34 of an agency worker by including a non-compete clause in any 35 -1- LSB 1197XD (6) 90 pf/rh 1/ 3

S.F. _____ H.F. _____ contract with an agency worker or health care entity. 1 (2) In any contract with an agency worker or health care 2 entity, require payment of liquidated damages, employment fees, 3 or other compensation if the agency worker is subsequently 4 hired as a permanent employee of the health care entity. 5 b. This subsection shall not apply to a contract between 6 a health care employment agency and an agency worker or a 7 health care entity if the contract meets all of the following 8 criteria: 9 (1) The contract is entered into for the purpose of placing 10 an agency worker the health care employment agency assisted in 11 obtaining authorization to work in the United States. 12 (2) The contract contains an initial duration term of 13 not less than twenty-four months and a total duration term, 14 including any renewals or extensions, of not more than 15 thirty-six months. 16 (3) The contract requires the agency worker to work for 17 a single health care entity for the entire duration of the 18 contract. 19 c. Any contract that violates this subsection shall be 20 unenforceable in court. 21 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 22 retroactively to any contract between a health care employment 23 agency and an agency worker or health care entity referred to 24 under section 135Q.2 that was entered into or executed on or 25 after January 1, 2019. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to health care employment agencies, health 30 care employment agency workers, and health care entities 31 under Code chapter 135Q (health care employment agencies and 32 workers). 33 The bill specifically includes as “direct services” those 34 services performed by a registered nurse, a licensed practical 35 -2- LSB 1197XD (6) 90 pf/rh 2/ 3

S.F. _____ H.F. _____ nurse, a certified nurse aide, a certified medication aide, 1 and a medication manager. The bill specifically excludes 2 as “direct services”, in addition to current exclusions, 3 janitorial, housekeeping, laundry, and meal preparation 4 services; the practice of medicine by an individual licensed 5 under Code chapter 148C to practice as a physician assistant 6 under the supervision of one or more physicians (physician 7 assistants); the practice of physical therapy by an individual 8 licensed under Code chapter 148A (physical therapy); the 9 practice of occupational therapy by an individual licensed 10 under Code chapter 148B (occupational therapy); and the 11 practice of speech pathology or audiology by an individual 12 licensed under Code chapter 154F (speech pathology and 13 audiology). 14 The bill also excludes from application of the provisions of 15 Code section 135Q.2, relating to a contract between a health 16 care employment agency and an agency worker or health care 17 entity, a contract between a health care employment agency 18 and an agency worker or health care entity if the contract 19 is entered into for the purpose of placing an agency worker 20 the health care employment agency assisted in obtaining 21 authorization to work in the United States; contains an initial 22 duration term of not less than 24 months and a total duration 23 term, including any renewals or extensions, of not more than 24 36 months; and requires the agency worker to work for a single 25 health care entity for the entire duration of the contract. 26 The bill applies retroactively to any contract between a 27 health care employment agency and an agency worker or health 28 care entity referred to under Code section 135Q.2 that was 29 entered into or executed on or after January 1, 2019. 30 -3- LSB 1197XD (6) 90 pf/rh 3/ 3