Bill Text: IA HF2521 | 2021-2022 | 89th General Assembly | Enrolled

---

Bill Title: A bill for an act relating to health care employment agencies, and providing penalties. (Formerly HF 2371, HSB 638.) Effective date: 07/01/2022. Applicability date: 01/01/2019.

Spectrum: Committee Bill

Status: (Passed) 2022-05-17 - Signed by Governor. H.J. 877. [HF2521 Detail]

Download: Iowa-2021-HF2521-Enrolled.html

---

House File 2521 - Enrolled
House File 2521
AN ACT
RELATING TO HEALTH CARE EMPLOYMENT AGENCIES, AND PROVIDING
PENALTIES.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION . 135Q.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. “Department” means the department of inspections and
appeals.
2. “Direct services” means services provided to consumers
through person-to-person contact. “Direct services” excludes
services performed by persons in a health care entity setting
that do not involve the provision of any service or treatment
to a consumer of a health care entity. “Direct services” does
not include the practice of medicine and surgery or osteopathic
medicine and surgery by an individual licensed under chapter
148 or the practice of nursing by an advanced registered nurse
practitioner or an advanced practice registered nurse licensed
under chapter 152 or 152E.
3. “Health care employment agency” or “agency” means an
agency that contracts with a health care entity in this state
to provide agency workers for temporary, temporary-to-hire,
direct hire, or other contract or employee placements.

House File 2521, p. 2
4. “Health care employment agency worker” or “agency worker”
means an individual who contracts with or is employed by a
health care employment agency to provide direct services or
nursing services to health care entity consumers.
5. “Health care entity” means a licensed or certified
facility, organization, or agency operated to provide services
and supports to meet the health or personal care needs of
consumers.
6. “Managing entity” means a business entity, owner,
ownership group, chief executive officer, program
administrator, director, or other decision maker whose
responsibilities include directing the management or policies
of a health care employment agency. “Managing entity” includes
an individual who, directly or indirectly, holds a beneficial
interest in a corporation, partnership, or other business
entity that constitutes a managing entity.
7. “Nursing services” means those services which may be
provided only by or under the supervision of a nurse. “Nursing
services” does not include the practice of nursing by an
advanced registered nurse practitioner or an advanced practice
registered nurse licensed under chapter 152 or 152E.
Sec. 2. NEW SECTION . 135Q.2 Health care employment agency
requirements —— registration —— liability —— penalties.
1. A health care employment agency operating in the state
shall register annually with the department. Each separate
location of a health care employment agency shall register
annually with and pay an annual registration fee of five
hundred dollars to the department. The department shall issue
each location a separate certification of registration upon
approval of registration and payment of the fee.
2. A health care employment agency shall do all of the
following:
a. Ensure that agency workers comply with all applicable
requirements relating to the health requirements and
qualifications of personnel in health care entity settings.
b. Document that each agency worker meets the minimum
licensing, certification, training, and health requirements
and the continuing education standards for the agency worker’s
position in the health care entity setting.

House File 2521, p. 3
c. Maintain records for each agency worker and report,
file, or otherwise provide any required documentation to
external parties or regulators which would otherwise be the
responsibility of the health care entity if the agency worker
was employed by the health care entity.
d. Maintain professional and general liability insurance
coverage with minimum per occurrence coverage of one million
dollars and aggregate coverage of three million dollars to
insure against loss, damage, or expense incident to a claim
arising out of the death or injury of any person as the result
of negligence or malpractice in the provision of services by
the agency or an agency worker.
3. a. A health care employment agency shall not do any of
the following:
(1) Restrict in any manner the employment opportunities
of an agency worker by including a non-compete clause in any
contract with an agency worker or health care entity.
(2) In any contract with an agency worker or health care
entity, require payment of liquidated damages, employment fees,
or other compensation if the agency worker is subsequently
hired as a permanent employee of the health care entity.
b. Any contract that violates this subsection shall be
unenforceable in court.
4. A health care employment agency shall submit a report to
the department on a quarterly basis for each health care entity
participating in Medicare or Medicaid with whom the agency
contracts that includes all of the following by provider type:
a. A detailed list of the average amount charged to the
health care entity for each individual agency worker category.
b. A detailed list of the average amount paid by the agency
to agency workers in each individual agency worker category.
5. a. A health care employment agency that violates
subsection 1 or subsection 2 is subject to denial or revocation
of registration for a period of one year and a monetary penalty
of five hundred dollars for a first offense and five thousand
dollars for each offense thereafter.
b. A health care employment agency that violates subsection
3 or that knowingly provides an agency worker who has an
illegally or fraudulently obtained or issued diploma,

House File 2521, p. 4
registration, license, certification, or background check to
a health care entity is subject to immediate revocation of
registration. The department shall notify the agency thirty
days in advance of the date of such revocation.
c. (1) The managing entity of an agency for which
registration has been denied or revoked under this subsection
shall not be eligible to apply for or be granted registration
for another agency during the two-year period following the
date of the denial or revocation.
(2) The department shall not approve a new registration
or renew an existing registration for any agency for which
the managing entity is also the managing entity of an agency
for which registration has been denied or revoked during the
two-year period in which registration of the violating agency
is denied or revoked.
6. The department shall establish a system for members of
the public to report complaints against an agency or agency
worker. The department shall investigate any complaint
received and shall report the department’s findings to the
complaining party and the agency involved.
______________________________ ______________________________
PAT GRASSLEY JAKE CHAPMAN
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2521, Eighty-ninth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2022 ______________________________
KIM REYNOLDS
Governor