The proposed legislation, General Assembly Substitute Bill No. 7227, establishes new regulations regarding the fees that healthcare providers can charge for patient health records when entering into state contracts. Effective October 1, 2025, providers or parties in possession of a patient's health records are prohibited from charging more than the lesser of the fees allowed under federal regulations or $250, plus reasonable costs for copies and postage. Additionally, any provider that does not comply with these fee requirements will be deemed ineligible to enter into a state contract. The bill clarifies that patients and their representatives are still responsible for reasonable charges for copies of health records.

Furthermore, the bill outlines the definition of a "state contract" and mandates that no state agency can execute such a contract without a representation from the bidding entity confirming compliance with the fee requirements. This representation must be included in the bid specifications, and any bidder that fails to agree to these terms will be rejected. The legislation also requires the Commissioners of Public Health and Administrative Services to collaborate on verifying compliance with these requirements. Overall, the bill aims to ensure fair pricing for health records while establishing accountability for entities seeking state contracts.