H.F. _____ 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 5401YC (1) 91 ss/ko 1/ 5

H.F. _____ 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. Beginning July 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 2. The application must be accompanied by the biennial 26 license fee determined pursuant to section 147.80. The license 27 is valid for two years from the date of issue and may be 28 renewed. 29 3. The board may deny an application for an establishment 30 license if the applicant is any of the following: 31 a. A massage therapist who is not in good standing with the 32 board or whose license is currently suspended. 33 b. A person who is under criminal investigation or who has 34 a criminal history determined by the board to be disqualifying. 35 -2- LSB 5401YC (1) 91 ss/ko 2/ 5

H.F. _____ The board may also consider criminal investigations and 1 histories of owners and officers of an applicant that is a 2 legal person. Disqualifying criminal acts include but are not 3 limited to human trafficking as described in section 710A.2, 4 sexual exploitation of a minor as described in section 728.12, 5 sexual abuse as defined in section 709.1, money laundering as 6 described in section 706B.2, child abuse as defined in section 7 232.68, and dependent adult abuse as defined in section 235B.2. 8 4. The board may revoke an establishment license based 9 upon public complaint, upon receiving evidence of misconduct 10 or disqualifying criminal acts at the establishment, or if the 11 board discovers that the application for the establishment 12 license was fraudulent. 13 5. The board may take emergency action to suspend the 14 license of an establishment if the board learns of pending 15 criminal charges against an establishment owner or officer. An 16 establishment shall not operate with a suspended license. 17 6. An establishment shall keep records for a period of three 18 years from the date the record is created, which shall include 19 all of the following: 20 a. The name and license number of each massage therapist who 21 has worked at the establishment. 22 b. A calendar or schedule of appointments and receipts which 23 shall include the name of each client, and the name of each 24 massage therapist who provided massage therapy to the client. 25 c. Any other records required by the board by rule. 26 7. A school of massage therapy teaching a massage therapy 27 curriculum approved by the board is exempt from licensing as 28 an establishment. 29 8. The board shall adopt rules pursuant to chapter 17A 30 to implement this section, which shall include all of the 31 following: 32 a. A process for the evaluation of applications and the 33 issuance of establishment licenses. 34 b. Requirements for adequate, safe, and sanitary 35 -3- LSB 5401YC (1) 91 ss/ko 3/ 5

H.F. _____ establishments. 1 c. Requirements for compliance with state and local 2 building, fire, and health codes necessary to ensure the safe 3 and effective practice of massage therapy. 4 d. Requirements for retention of client and ownership 5 records. 6 e. Requirements for initial and periodic sanitary 7 inspections of establishments. 8 f. Requirements for the transfer of an establishment 9 license. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to the licensure of massage therapy 14 establishments. Beginning July 1, 2027, the bill requires 15 a massage therapy establishment, defined in the bill as a 16 location where massage therapy is practiced, to obtain a 17 license in order to operate. The bill requires an applicant 18 to submit an application in a form prescribed by the board 19 of massage therapy (board) and it must be accompanied by an 20 application fee. The board may perform a sanitary inspection 21 of a proposed establishment prior to issuing a license and 22 biennially thereafter, or upon receipt of a complaint. 23 The bill allows the board to deny an application if the 24 applicant is a massage therapist who is not in good standing 25 or holds a suspended license, or if the applicant is under 26 criminal investigation or has a disqualifying criminal history, 27 as described in the bill. The bill allows the board to revoke 28 a license based on public complaint, upon receiving evidence 29 of misconduct, including disqualifying criminal acts, or upon 30 a finding that the application was fraudulent. The board may 31 also take emergency action to suspend a license upon discovery 32 of pending criminal charges against an establishment owner or 33 officer. An establishment license is valid for two years and 34 may be renewed. 35 -4- LSB 5401YC (1) 91 ss/ko 4/ 5

H.F. _____ The bill requires an establishment to maintain certain 1 records for three years, including information regarding 2 massage therapists who have worked at the establishment and the 3 clients to whom they have provided massage therapy. The bill 4 also requires a person under investigation by a peace officer 5 for the provision of illegal services to provide a copy of the 6 establishment license, if applicable. A person who violates 7 this provision of the bill is guilty of a serious misdemeanor. 8 A serious misdemeanor is punishable by confinement for no more 9 than one year and a fine of at least $430 but not more than 10 $2,560. 11 The bill exempts certain people from the requirement to 12 obtain an establishment license, including massage therapists 13 providing massage therapy at a customer’s location, operators 14 of devices such as massage chairs, certain licensed health 15 care professionals, student clinics operated by a school of 16 massage therapy, and sole practitioners. The bill defines 17 “sole practitioner” as a massage therapist who provides 18 massage therapy at a location over which the massage therapist 19 exercises physical control and from which only the massage 20 therapist offers and provides massage therapy. 21 The bill requires the board to adopt rules to implement 22 the bill. The rules shall include application, sanitation, 23 building safety, record retention, inspection, and license 24 transfer requirements. 25 -5- LSB 5401YC (1) 91 ss/ko 5/ 5