BILL NUMBER: SB 1914	CHAPTERED  09/12/02

	CHAPTER  489
	FILED WITH SECRETARY OF STATE  SEPTEMBER 12, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 11, 2002
	PASSED THE SENATE  AUGUST 29, 2002
	PASSED THE ASSEMBLY  AUGUST 20, 2002
	AMENDED IN ASSEMBLY  JULY 18, 2002
	AMENDED IN ASSEMBLY  JULY 3, 2002
	AMENDED IN ASSEMBLY  JUNE 10, 2002
	AMENDED IN SENATE  APRIL 2, 2002

INTRODUCED BY   Committee on Insurance (Senators Speier (Chair),
Escutia, Figueroa, Johnson, Scott, and Soto)

                        FEBRUARY 22, 2002

   An act to add and repeal Section 130311.5 of the Health and Safety
Code, relating to health.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1914, Committee on Insurance.  Health.
   Existing federal law, the Health Insurance Portability and
Accountability Act of 1996 (HIPAA), establishes requirements to
safeguard the privacy of medical information.  The  HIPAA specifies
that its provisions supersede any contrary provision of state law,
subject to specified exceptions.  Existing state law, the Health
Insurance Portability and Accountability Implementation Act of 2001,
provides for the implementation of the HIPAA's requirements in this
state, including requiring the Office of HIPAA Implementation to
perform specified activities required for compliance with the act.
   This bill would  require the office to assume statewide
leadership, coordination, direction, and oversight responsibilities
for determining which provisions of state law concerning personal
medical information are preempted by HIPAA.  The bill would require
state entities impacted by HIPAA, at the direction of the office, to
assist in, and conform to, these determinations.  The bill would also
provide that any provision of state law concerning personal medical
information is not applicable to the extent that it is superseded by
HIPAA.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature declares that the right of
individuals to privacy of their personal medical information is a
fundamental right of the people of California.
   (b) The Legislature further makes the following findings:
   (1) The people of California should be provided with the highest
possible level of protection of the privacy of their personal medical
information and records. The people of California should also be
provided with the highest possible level of access to their own
personal medical information and records and to information about
their medical information privacy rights and the privacy practices of
their health care providers and insurers.
   (2) Certain federal regulations that implement the federal Health
Insurance Portability and Accountability Act of 1996 (HIPAA) will
supersede less stringent state laws pertaining to the privacy of
personal medical information.
   (3) California is required to comply with the provisions of HIPAA
on or before April 14, 2003.
   (4) The Office of HIPAA Implementation should have the authority
to determine which provisions of state law concerning personal
medical information are preempted by HIPAA pursuant to Section
160.203 of Title 45 of the Code of Federal Regulations.
  SEC. 2.  Section 130311.5 is added to the Health and Safety Code,
to read:
   130311.5.  (a) The office shall assume statewide leadership,
coordination, direction, and oversight responsibilities for
determining which provisions of state law concerning personal medical
information are preempted by HIPAA pursuant to Section 160.203 of
Title 45 of the Code of Federal Regulations.  State entities impacted
by HIPAA shall, at the direction of the office, do the following:
   (1) Assist in determining which state laws concerning personal
medical information are preempted by HIPAA.
   (2) Conform to all determinations made by the office concerning
HIPAA preemption issues.
   (b) Any provision of state law concerning personal medical
information that is determined by the office to be preempted by HIPAA
pursuant to Section 160.203 of Title 45 of the Code of Federal
Regulations, shall not be applicable to the extent of that
preemption.  The remainder of the provisions of state law concerning
personal medical information shall remain in full force and effect.
   (c) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2005, deletes or extends
that date.