House File 357 - Enrolled
House File 357
AN ACT
RELATING TO HEALTH CARE EMPLOYMENT AGENCIES, HEALTH CARE
EMPLOYMENT AGENCY WORKERS, AND HEALTH CARE ENTITIES,
PROVIDING FOR THE USE OF ANNUAL REGISTRATION FEES, AND
INCLUDING RETROACTIVE APPLICABILITY PROVISIONS.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 135Q.1, Code 2023, is amended to read as
2 follows:
3 135Q.1 Definitions.
4 As used in this chapter, unless the context otherwise
5 requires:
6 1. “Department” means the department of inspections and
7 appeals.
8 2. “Direct services” means services provided to consumers
9 through person-to-person contact. “Direct services” excludes
10 services performed by persons in a health care entity setting
11 that do not involve the provision of any service or treatment
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12 to a consumer of a health care entity. “Direct services” does
13 not include the practice of medicine and surgery or osteopathic
14 medicine and surgery by an individual licensed under chapter
15 148 or the practice of nursing by an advanced registered nurse
16 practitioner or an advanced practice registered nurse licensed
17 under chapter 152 or 152E.
18 3. 2. “Health care employment agency” or “agency” means an
19 agency that contracts with a health care entity in this state
20 to provide agency workers for temporary, or temporary-to-hire,
21 direct hire, or other contract or employee placements.
22 4. 3. “Health care employment agency worker” or “agency
23 worker” means an individual who contracts with or is employed by
24 a health care employment agency to provide direct services or
25 nursing services to health care entity consumers.
26 5. 4. “Health care entity” means a facility, agency, or
27 program licensed or certified facility, organization, or agency
28 operated to provide services and supports to meet the health or
29 personal care needs of consumers by the department or by the
30 centers for Medicare and Medicaid services of the United States
31 department of health and human services.
32 6. 5. “Managing entity” means a business entity,
33 owner, ownership group, chief executive officer, program
34 administrator, director, or other decision maker whose
35 responsibilities include directing the management or policies
1 of a health care employment agency. “Managing entity” includes
2 an individual who, directly or indirectly, holds a beneficial
3 interest in a corporation, partnership, or other business
4 entity that constitutes a managing entity.
5 7. 6. “Nursing services” means those services which may be
6 provided only by or under the supervision of a nurse. “Nursing
7 services” includes services performed by a registered nurse, a
8 licensed practical nurse, a certified nurse aide, a certified
9 medication aide, a home health aide, a medication manager, or
10 by noncertified or nonlicensed staff providing personal care
11 as defined in section 231C.2. “Nursing services” does not
12 include the practice of nursing by an advanced registered nurse
13 practitioner or an advanced practice registered nurse licensed
14 under chapter 152 or 152E.
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15 Sec. 2. Section 135Q.2, subsections 1 and 3, Code 2023, are
16 amended to read as follows:
17 1. A health care employment agency operating in the state
18 shall register annually with the department. Each separate
19 location of a health care employment agency shall register
20 annually with and pay an annual registration fee of five
21 hundred dollars to the department. The department shall issue
22 each location a separate certification of registration upon
23 approval of registration and payment of the fee. The annual
24 registration fees shall be retained by the department as
25 repayment receipts as defined in section 8.2.
26 3. a. A health care employment agency shall not do any of
27 the following:
28 (1) Restrict in any manner the employment opportunities
29 of an agency worker by including a non-compete clause in any
30 contract with an agency worker or health care entity.
31 (2) In any contract with an agency worker or health care
32 entity, require payment of liquidated damages, employment fees,
33 or other compensation if the agency worker is subsequently
34 hired as a permanent employee of the health care entity.
35 b. This subsection shall not apply to a contract between
1 a health care employment agency and an agency worker or a
2 health care entity if the contract meets all of the following
3 criteria:
4 (1) The contract is entered into for the purpose of placing
5 an agency worker the health care employment agency assisted in
6 obtaining authorization to work in the United States.
7 (2) The contract contains an initial duration term of
8 not less than twenty-four months and a total duration term,
9 including any renewals or extensions, of not more than
10 thirty-six months.
11 (3) The contract requires the agency worker to work for
12 a single health care entity for the entire duration of the
13 contract.
14 b. c. Any contract that violates this subsection shall be
15 unenforceable in court.
16 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
17 retroactively to any contract between a health care employment
18 agency and an agency worker or health care entity referred to
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19 under section 135Q.2 that was entered into or executed on or
20 after January 1, 2019.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 357, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2023 ______________________________
KIM REYNOLDS
Governor


Statutes affected:
Introduced: 135Q.1
Enrolled: 135Q.1