BILL ANALYSIS Ó AB 174 Page 1 ( Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 174 (Monning) As Amended August 24, 2012 Majority vote ---------------------------------------------------------------------- |ASSEMBLY: | |(May 19, 2011) |SENATE: |25-8 |(August 29, 2012) | ---------------------------------------------------------------------- (vote not relevant) ------------------------------------------------------------------------ |COMMITTEE VOTE: |11-4 |(August 30, 2012) |RECOMMENDATION: |concur | |(HEALTH) | | | | | ------------------------------------------------------------------------ Original Committee Reference: HEALTH SUMMARY : Establishes the California Health and Human Services Automation Fund (Fund), in the State Treasury, to consist of moneys appropriated to various specified health and human services information technology (IT) projects, and requires the moneys in the Fund to be available upon appropriation by the Legislature for expenditure by the Office of Systems Integration (OSI). The Senate amendments delete the Assembly version of this bill and instead: 1)Establish the Fund and specify the sources of funding that should be transferred to and appropriated from the Fund. 2)Permit the Employment Development Department (EDD) and the Franchise Tax Board (FTB) to share information and develop data interfaces with the California Health Benefit Exchange (Exchange) for purposes of enabling the Exchange to make eligibility determinations and comply with certain federal requirements. 3)Clarify that nothing in this bill overrides any existing state or federal laws governing patient privacy or information security. 4)Make other technical and conforming changes to address chaptering conflicts. AB 174 Page 2 AS PASSED BY THE ASSEMBLY , this bill required the system of electronic health records developed through health information exchange demonstration projects permitted under existing law to be implemented with the full participation of health consumers and organizations concerned with protecting the privacy and security of patient information in the development of policies. FISCAL EFFECT : According to the Senate Appropriations Committee: 1)Minor costs to administer the Fund. 2)Annual costs of about $20,000 to the EDD to provide required information to the Exchange (California Health Trust Fund). 3)Annual costs of about $20,000 to the FTB to provide required information to the Exchange, based on projected costs to the EDD for similar activities (California Health Trust Fund). COMMENTS : According to the author, this bill is needed to formally re-establish the inadvertently abolished OSI Fund within the Health and Human Services Agency and rename it as the California Health and Human Services Automation Fund. This bill reinstates statutory authority for the Fund in order to prevent future challenges to payments from the Fund. The author states that the OSI manages various major health and human services IT projects that are worth hundreds of millions of dollars and this bill is intended to ensure that the OSI has the statutory authority it needs to fulfill its duties. In addition, the author notes that, currently, no mechanism exists to allow the EDD and the FTB to share information with the Exchange. According to the author, this bill will facilitate allowing the Exchange to have access to this information in order to comply with eligibility determinations and other requirements of federal health care reform. Analysis Prepared by : Cassie Royce / HEALTH / (916) 319-2097 FN: 0005855 AB 174 Page 3