BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 174
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        ( 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
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         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
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