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 applicable postage and reasonable costs for copies of imaging. 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 paying 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 or requests for proposals. If a bidder does not agree to these terms, their proposal will be rejected, and the contract will be awarded to the next qualified bidder. The bill also requires the Commissioners of Public Health and Administrative Services to collaborate on verifying compliance with these new requirements.