BILL ANALYSIS SB 270 Page 1 SENATE THIRD READING SB 270 (Alquist) As Amended August 2, 2010 2/3 vote. Urgency SENATE VOTE :33-0 HEALTH 19-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Monning, Fletcher, |Ayes:|Fuentes, Conway, | | |Ammiano, Carter, Conway, | |Bradford, | | |De La Torre, De Leon, | |Huffman, Coto, Davis, De | | |Eng, Gaines, Hayashi, | |Leon, Gatto, Hall, | | |Hernandez, Jones, Bonnie | |Harkey, Miller, Nielsen, | | |Lowenthal, Nava, | |Norby, Skinner, Solorio, | | |V. Manuel Perez, Salas, | |Torlakson, Torrico | | |Smyth, Audra Strickland, | | | | |Silva | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Clarifies existing law related to delays in reporting unauthorized access to, and use or disclosure of, a patient's medical information to the California Department of Public Health (DPH), makes other specified clarifications, and extends sunset for California Office of Health Insurance Portability and Accountability Act of 2001 (HIPAA) Implementation (CalOHI). Specifically, this bill : 1)Authorizes a clinic, health facility, home health agency, or hospice to delay reporting unlawful or unauthorized access, use, or disclosure of a patient's medical information to DPH if a law enforcement agency or official provides the entity with a written or oral statement that compliance with the reporting requirement would likely impede the law enforcement agency's investigation , rather than activities , that relates to the unlawful or unauthorized access to, and use or disclosure of, a patient's medical information. 2)Authorizes a law enforcement agency or official to request an extension of the 60-day delay based upon a written declaration that there exists a bona fide, ongoing, significant criminal investigation of serious wrongdoing, that notification of SB 270 Page 2 patients will undermine the law enforcement agency's investigation , rather than activities . 3)Clarifies for purposes of this bill, that internal paper records, electronic mail, or facsimile transmissions inadvertently misdirected within the same facility or health care, as specified, shall not constitute unauthorized access to, or use or disclosure of a patient's medical information. 4)Clarifies, for enforcement purposes, that it shall be presumed that the facility did not notify the affected patient if the notification was not documented and authorizes this presumption to be rebutted by a licensee only if it demonstrates, by a preponderance of evidence, that the notification was made. 5)Extends the sunset date CalOHI from July 1, 2010, to January 1, 2013. 6)Contains an urgency clause to make the provisions of this bill effective immediately upon enactment. FISCAL EFFECT : According to the Assembly Appropriations Committee, annualized costs of $4 million (65% General Fund) to extend the sunset of CalOHI until January 1, 2013. The CalOHI funding is included in the 2010-11 Budget proposed by the Governor and approved by the legislative budget committees. COMMENTS : According to the author, this bill clarifies that disclosure of medical privacy breaches can be suspended for law enforcement investigations, rather than any law enforcement activity, which significantly narrows the limit on disclosure of medical privacy breaches. Additionally, this bill extends the sunset of the state agency responsible for overseeing the federal health information technology infrastructure grants, including the federal health information exchange grant, and serves as the primary resource for state entities on health information privacy and the implementation of HIPAA regulations. The sunset date for CalOHI is currently set for July 1, 2010, which is why the author requests an urgency clause. Analysis Prepared by : Martin Radosevich / HEALTH / (916) 319-2097 SB 270 Page 3 FN: 0006002