BILL NUMBER: SB 270	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 23, 2009

INTRODUCED BY   Senator Alquist

                        FEBRUARY 24, 2009

    An act to add Sections 1253.2, 1379.2, and 1379.6 to the
Health and Safety Code, and to add Section 10127.45 to the Insurance
Code, relating to health care.   An act to add Division
109.5 (commencing with Section 130250) to the Health and Safety Code,
relating to public health. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 270, as amended, Alquist. Health  information
technology.   Information Technology Advisory Panel.
 
   Existing law establishes the Office of Health Information
Integrity within the California Health and Human Services Agency to
ensure the enforcement of state law mandating confidentiality of
medical information and to impose administrative fines for the
unauthorized use of medical information.  
   This bill would, in addition, establish the Health Information
Technology Advisory Panel to advise the Governor and the Legislature
on health information technology implementation. This bill would
provide for the appointment of panel members, establish the
qualifications of members, and set forth the duties of the panel.
 
   Existing law provides for the licensure and regulation of health
facilities by the State Department of Public Health. Existing law,
the Knox-Keene Health Care Service Plan Act of 1975, provides for the
licensure and regulation of health care service plans by the
Department of Managed Health Care and makes a willful violation of
the act a crime. Existing law provides for the regulation of health
insurers by the Department of Insurance.  
   This bill, on and after January 1, 2011, would require a state
agency that contracts with a health care provider, a health care
service plan, or a health insurer to include in the contract a
provision requiring the provider, plan, or insurer, when
implementing, acquiring, or upgrading its health information
technology systems, to utilize systems and products that meet federal
standards for interoperability and implementation specifications,
where available.  
   Existing law requires that contracts between health care service
plans and providers be in writing and provides for the reimbursement
of covered services rendered by providers.  
   This bill, on and after January 1, 2011, would require a health
care service plan to offer additional compensation to contracted
providers for improved patient outcomes and coordination of care
resulting from the meaningful use of health information technology.
The bill would require plans to report a schedule of that
compensation to the department.  
   Because a willful violation of the bill's provisions relating to
health care service plans would be a crime, this bill would impose a
state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


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

   SECTION 1.    Division 109.5 (commencing with Section
130250) is added to the   Health and Safety Code  
, to read:  

      DIVISION 109.5.  Health Information Technology Advisory Panel


   130250.  (a) There is hereby created a health information
technology advisory panel to advise the Governor and the Legislature
on health information technology implementation in California. The
panel shall be composed of the following voting members:
   (1) Two representatives of consumers, one of whom shall have
expertise in privacy and security of health information.
   (2) One representative from a hospital.
   (3) One representative from a primary care clinic.
   (4) One representative from a health plan or health insurer.
   (5) Two representatives from a medical group, one of whom shall
represent a group of specialists.
   (6) Two representatives from health care professions who are not
physicians.
   (7) One representative who is a solo or small group physician.
   (8) One representative who is a physician who is part of an
independent physician association.
   (9) One representative who has expertise in telemedicine or
telehealth.
   (10) Two representatives from institutions of higher education
that offer medical or clinical education or health informatics, one
of whom represents a public institution.
   (11) One representative from the California Council on Science and
Technology.
   (12) One representative from a nonprofit entity who has
demonstrated expertise in health information technology.
   (13) One representative with expertise in the use of health
information technology to manage chronic disease.
   (b) Of the panel members as provided for in subdivision (a) the
Governor shall appoint __ members, the Senate Committee on Rules
shall appoint __ members, and the Speaker of the Assembly shall
appoint __ members.
   (c) The following shall also participate in the panel as ex
officio, nonvoting members:
   (1) The Secretary of Business, Transportation and Housing, or his
or her designee.
   (2) The Secretary of Health and Human Services, or his or her
designee.
   (3) The chair of the Senate Committee on Health, or his or her
designee.
   (4) The chair of the Assembly Committee on Health, or his or her
designee.
   130251.  (a) Voting members shall have demonstrated expertise in
the provision, use, or deployment of health information technologies
to providers, provider groups, provider facilities, consumers,
patients, or communities.
   (b) The initial term of voting members shall be staggered, with
eight members being appointed for a two-year term and nine members
being appointed for a four-year term. Upon the expiration of the
initial term, all voting members shall be appointed for a four-year
term.
   (c) The panel shall elect, from among its members, a chair who
shall regularly report to the Governor and the Legislature on behalf
of the panel.
   130252.  (a) The panel shall do all of the following:
   (1) Make recommendations to maximize the state's eligibility and
award of federal stimulus funds, authorized by the American Recovery
and Reinvestment Act of 2009 (ARRA) (Public Law 111-5), related to
the use of health information technology.
   (2) Advise the Governor and the Legislature on a mechanism for
designating a nonstate entity, and whether such a nonstate entity is
desirable, for executing tasks related to accessing federal stimulus
funds made available through ARRA.
   (3) Make recommendations to ensure that safety net providers have
access to federal stimulus funds for which they are eligible.
   (4) Make recommendations for sources necessary to match federal
dollars in the award of funds made available through ARRA.
   (5) Make recommendations for working with higher education
entities to incorporate medical informatics and health care
information enterprise integration into the higher education
curriculum, and information technology into clinical education.
   (6) Make recommendations for standards and certification to
federal policy makers and the Office of the National Coordinator for
Health Information Technology in the federal Department of Health and
Human Services.
   (7) Make recommendations on qualifications for centers in the
state that may provide technical assistance and best practices
related to health information technology.
   (8) Make recommendations to ensure that providers have access to
information on federal incentive payments available under ARRA,
including understanding of "meaningful use" as defined in federal
law.
   (9) Meet at least monthly in the first year, and, thereafter, as
deemed necessary by the chair.
   (b) The panel shall make a recommendation in 2014 whether
continued need for the advisory panel exists beyond 2016.
   (c) All members of the advisory panel shall serve without
compensation. Members of the panel shall be reimbursed for all
necessary travel expenses associated with the activities of the
panel. Consumer representatives on the panel may receive per diem
compensation if they are otherwise economically unable to attend and
participate in panel activities.  
  SECTION 1.    Section 1253.2 is added to the
Health and Safety Code, to read:
   1253.2.  (a) On and after January 1, 2011, a state agency that
contracts with a health care provider shall include in the contract a
provision requiring the provider to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the provider implements, acquires, or upgrades those systems.
   (b) For purposes of this section, the following definitions apply:

   (1) "Health care provider" means any professional person, medical
group, independent practice association, organization, health care
facility, or other person or institution licensed or authorized by
the state to deliver or furnish health services.
   (2) "State agency" means any office, officer, department,
division, bureau, board, commission, or agency of the state.
 
  SEC. 2.    Section 1379.2 is added to the Health
and Safety Code, to read:
   1379.2.  On and after January 1, 2011, a health care service plan
shall offer additional compensation to contracted providers for
improved patient outcomes and coordination of care resulting from the
meaningful use of health information technology. A health care
service plan shall file a schedule of this additional compensation
with the department.  
  SEC. 3.    Section 1379.6 is added to the Health
and Safety Code, to read:
   1379.6.  (a) On and after January 1, 2011, a state agency that
contracts with a health care service plan shall include in the
contract a provision requiring the plan to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the plan implements, acquires, or upgrades those systems.
   (b) For purposes of this section, "state agency" means any office,
officer, department, division, bureau, board, commission, or agency
of the state.  
  SEC. 4.    Section 10127.45 is added to the
Insurance Code, to read:
   10127.45.  (a) On and after January 1, 2011, a state agency that
contracts with a health insurer shall include in the contract a
provision requiring the insurer to utilize health information
technology systems and products that meet federal standards for
interoperability and implementation specifications, where available,
when the insurer implements, acquires, or upgrades those systems.
   (b) For purposes of this section, "state agency" means any office,
officer, department, division, bureau, board, commission, or agency
of the state.  
  SEC. 5.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.