H.F. 2602 Section 1. Section 152C.1, Code 2026, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 1A. “Establishment” means a location where 3 massage therapy is practiced. “Establishment” does not include 4 any of the following: 5 a. A location where massage therapy is provided by a massage 6 therapist at the site of the customer. 7 b. Stand-alone devices, including chairs, that are operated 8 by the customer. 9 c. A location within a licensed health care facility where 10 a person exempted from this chapter pursuant to section 152C.9, 11 subsection 1, practices the person’s licensed profession or 12 under the prescription of supervision of a licensed person. 13 d. A student clinic operated by a school of massage therapy 14 approved by the board. 15 e. A location where a sole practitioner practices massage 16 therapy. 17 NEW SUBSECTION . 5. “Sole practitioner” means a massage 18 therapist who provides massage therapy at a location over which 19 the massage therapist exercises physical control and from which 20 only the massage therapist offers and provides massage therapy. 21 Sec. 2. Section 152C.4, subsection 1, unnumbered paragraph 22 1, Code 2026, is amended to read as follows: 23 The board, or its authorized agents, may inspect any 24 facility establishment that advertises or offers the services 25 of massage therapy. The board may, by order, impose a civil 26 penalty upon a person who practices as a massage therapist 27 without a license issued under this chapter , or a person or 28 business that employs an individual who is not licensed under 29 this chapter , or a person who operates an establishment without 30 a license . The penalty shall not exceed one thousand dollars 31 for each offense. Each day of a continued violation after an 32 order or citation by the board constitutes a separate offense, 33 with the maximum penalty not to exceed ten thousand dollars. 34 In determining the amount of a civil penalty, the board may 35 -1- LSB 5401HV (2) 91 ss/ko 1/ 6

H.F. 2602 consider the following: 1 Sec. 3. Section 152C.5B, subsection 2, Code 2026, is amended 2 to read as follows: 3 2. A person licensed or who purports to be licensed under 4 this chapter shall, upon the request of any peace officer 5 investigating a complaint of illegal services, present a copy 6 of the person’s valid Iowa massage therapist license , a valid 7 establishment license, if applicable, and a government-issued 8 identification to the peace officer. A person who violates 9 this subsection commits a serious misdemeanor. 10 Sec. 4. Section 152C.7, Code 2026, is amended to read as 11 follows: 12 152C.7 Suspension and revocation of licenses. 13 The board may suspend, revoke, or impose probationary 14 conditions upon a license issued pursuant to rules adopted in 15 accordance with section 152C.3 this chapter . 16 Sec. 5. NEW SECTION . 152C.10 Establishment license. 17 1. a. Beginning January 1, 2027, an establishment shall not 18 operate unless the owner has obtained a license issued by the 19 board. The owner shall apply to the board on forms prescribed 20 by the board. The board may perform a sanitary inspection of 21 an establishment prior to the issuance of a license and may 22 perform a sanitary inspection of each establishment biennially. 23 An inspection of an establishment may also be conducted upon 24 receipt of a complaint by the board. 25 b. The board shall require the owner of an establishment 26 to provide fingerprints to the board and shall submit the 27 fingerprints to the federal bureau of investigation through 28 the state criminal history repository for the purpose of a 29 national criminal history check, except that the department of 30 inspections, appeals, and licensing may adopt rules exempting a 31 person who has previously submitted fingerprints to the federal 32 bureau of investigation through the state criminal history 33 repository for the purpose of a national criminal history check 34 as part of an application for a license to practice massage 35 -2- LSB 5401HV (2) 91 ss/ko 2/ 6

H.F. 2602 therapy. 1 2. The application must be accompanied by the license fee 2 determined pursuant to section 147.80. The license is valid 3 for a period as determined by the department of inspections, 4 appeals, and licensing by rule and may be renewed. 5 3. The board may deny an application for an establishment 6 license if the applicant is any of the following: 7 a. A massage therapist who is not in good standing with the 8 board or whose license is currently suspended. 9 b. A person who is under criminal investigation or who has 10 a criminal history determined by the board to be disqualifying. 11 The board may also consider criminal investigations and 12 histories of owners and officers of an applicant that is a 13 legal person. Disqualifying criminal acts include but are not 14 limited to human trafficking as described in section 710A.2, 15 sexual exploitation of a minor as described in section 728.12, 16 sexual abuse as defined in section 709.1, money laundering as 17 described in section 706B.2, child abuse as defined in section 18 232.68, and dependent adult abuse as defined in section 235B.2. 19 4. The board may revoke an establishment license based 20 upon public complaint, upon receiving evidence of misconduct 21 or disqualifying criminal acts at the establishment, or if the 22 board discovers that the application for the establishment 23 license was fraudulent. 24 5. The board may take emergency action to suspend the 25 license of an establishment if the board learns of pending 26 criminal charges against an establishment owner or officer. An 27 establishment shall not operate with a suspended license. 28 6. An establishment shall keep records for a period of three 29 years from the date the record is created, which shall include 30 all of the following: 31 a. The name and license number of each massage therapist who 32 has worked at the establishment. 33 b. A calendar or schedule of appointments and receipts which 34 shall include the name of each client, and the name of each 35 -3- LSB 5401HV (2) 91 ss/ko 3/ 6

H.F. 2602 massage therapist who provided massage therapy to the client. 1 c. Any other records required by the board by rule. 2 7. A school of massage therapy teaching a massage therapy 3 curriculum approved by the board is exempt from licensing as 4 an establishment. 5 8. The board shall adopt rules pursuant to chapter 17A 6 to implement this section, which shall include all of the 7 following: 8 a. A process for the evaluation of applications and the 9 issuance of establishment licenses. 10 b. Requirements for adequate, safe, and sanitary 11 establishments. 12 c. Requirements for compliance with state and local 13 building, fire, and health codes necessary to ensure the safe 14 and effective practice of massage therapy. 15 d. Requirements for retention of client and ownership 16 records. 17 e. Requirements for initial and periodic sanitary 18 inspections of establishments. 19 f. Requirements for the transfer of an establishment 20 license. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill relates to the licensure of massage therapy 25 establishments. Beginning January 1, 2027, the bill requires 26 a massage therapy establishment, defined in the bill as a 27 location where massage therapy is practiced, to obtain a 28 license in order to operate. The bill requires an applicant 29 to submit an application in a form prescribed by the board 30 of massage therapy (board) and it must be accompanied by an 31 application fee. The board may perform a sanitary inspection 32 of a proposed establishment prior to issuing a license and 33 biennially thereafter, or upon receipt of a complaint. 34 The bill requires the board to require the owner of a massage 35 -4- LSB 5401HV (2) 91 ss/ko 4/ 6

H.F. 2602 therapy establishment to provide fingerprints to the board 1 for the purposes of conducting a national criminal history 2 check. However, the bill allows the department of inspections, 3 appeals, and licensing (DIAL) to adopt rules exempting a 4 person who has previously submitted fingerprints as part of an 5 application for a license to practice massage therapy. 6 The bill allows the board to deny an application if the 7 applicant is a massage therapist who is not in good standing 8 or holds a suspended license, or if the applicant is under 9 criminal investigation or has a disqualifying criminal history, 10 as described in the bill. The bill allows the board to revoke 11 a license based on public complaint, upon receiving evidence 12 of misconduct, including disqualifying criminal acts, or upon 13 a finding that the application was fraudulent. The board may 14 also take emergency action to suspend a license upon discovery 15 of pending criminal charges against an establishment owner or 16 officer. An establishment license is valid for a period of 17 time as determined by DIAL by rule and may be renewed. 18 The bill requires an establishment to maintain certain 19 records for three years, including information regarding 20 massage therapists who have worked at the establishment and the 21 clients to whom they have provided massage therapy. The bill 22 also requires a person under investigation by a peace officer 23 for the provision of illegal services to provide a copy of the 24 establishment license, if applicable. A person who violates 25 this provision of the bill is guilty of a serious misdemeanor. 26 A serious misdemeanor is punishable by confinement for no more 27 than one year and a fine of at least $430 but not more than 28 $2,560. 29 The bill exempts certain people from the requirement to 30 obtain an establishment license, including massage therapists 31 providing massage therapy at a customer’s location, operators 32 of devices such as massage chairs, certain licensed health 33 care professionals, student clinics operated by a school of 34 massage therapy, and sole practitioners. The bill defines 35 -5- LSB 5401HV (2) 91 ss/ko 5/ 6

H.F. 2602 “sole practitioner” as a massage therapist who provides 1 massage therapy at a location over which the massage therapist 2 exercises physical control and from which only the massage 3 therapist offers and provides massage therapy. 4 The bill requires the board to adopt rules to implement 5 the bill. The rules shall include application, sanitation, 6 building safety, record retention, inspection, and license 7 transfer requirements. 8 -6- LSB 5401HV (2) 91 ss/ko 6/ 6