BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 658
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 658 (Ian Calderon)
          As Amended June 24, 2013
          Majority vote 
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |76-0 |(May 9, 2013)   |SENATE: |37-0 |(August 19,    |
          |           |     |                |        |     |2013)          |
           ----------------------------------------------------------------- 
            
           Original Committee Reference:    JUD.  

           SUMMARY  :  Requires any business that offers software or hardware  
          to consumers, including a mobile application or other related  
          device that is designed to maintain medical information, as  
          defined, for purposes of allowing the individual to manage his  
          or her information, or for the diagnosis, treatment, or  
          management of a medical condition of the individual, shall be  
          deemed to be a provider of health care subject to the state  
          Confidentiality of Medical Information Act (CMIA). 
                
           The Senate amendments  add minor clarifying language. 
           
          EXISTING LAW  :

          1)Specifies, under the federal Health Insurance Portability and  
            Accountability Act (HIPAA), privacy protections for patients'  
            protected health information and generally provides that a  
            covered entity, as defined, may not use or disclose protected  
            health information except as specified or as authorized by the  
            patient in writing.  

          2)Prohibits a health care provider, health care service plan, or  
            contractor from disclosing medical information, as defined,  
            regarding a patient, enrollee, or subscriber without first  
            obtaining an authorization, except as specified.  Provides  
            that a valid authorization must comply with HIPAA and the  
            CMIA.  

          3)Provides that any business organized for the purpose of  
            maintaining medical information in order to make the  
            information available to an individual or to a provider of  
            health care at the request of the individual or the provider  
            of health care, for purposes of allowing the individual to  
            manage his or her information, or for the diagnosis of  








                                                                  AB 658
                                                                  Page  2

            treatment of the individual, shall be deemed to be a provider  
            of health care subject to the requirements of the CMIA.  

          4)Provides that any provider of health care, health care service  
            plan, pharmaceutical company, or contractor who negligently  
            creates, maintains, preserves, stores, abandons, destroys, or  
            disposes of written or electronic medical records shall be  
            subject to damages in a civil action or an administrative  
            fine, as specified.  

          5)Requires a health care provider, health care service plan,  
            pharmaceutical company, or contractor who creates, maintains,  
            preserves, stores, abandons, destroys, or disposes of written  
            or electronic medical records to do so in a manner that  
            preserves the confidentiality, accuracy, and integrity of the  
            information contained therein.  

          6)Defines "medical information" to mean any individually  
            identifiable information, in electronic or physical form, in  
            possession of or derived from a provider of health care,  
            health care service plan, pharmaceutical company, or  
            contractor regarding a patient's medical history, condition,  
            or treatment.  Existing law defines "individually  
            identifiable" to mean that the medical information includes or  
            contains an element of personal information sufficient to  
            allow identification of the individual, such as the patient's  
            name, address, electronic mail address, telephone number, or  
            social security number, or other information that, alone or in  
            combination with other publicly available information, reveals  
            the individual's identity.  

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  The Confidentiality of Medical Information Act (CMIA)  
          prohibits a health care provider, health care service plan, or  
          medical contractor from sharing or disclosing a person's medical  
          information without that person's consent.  Existing law creates  
          a number of mandatory and permissive exceptions to this general  
          rule of no disclosure without consent.  For example, mandatory  
          exemptions include, among other things, emergency situations or  
          by order of a court, while permissive disclosures include those  
          necessary for billing or administrative purposes, or for  
          purposes of diagnosis or treatment of the patient.  "Medical  
          information" for purposes of the CMIA is defined to include "any  








                                                                  AB 658
                                                                  Page  3

          individually identifiable information, in electronic or physical  
          form, in possession of or derived from a provider of health  
          care, health care service plan, pharmaceutical company, or  
          contractor regarding a patient's medical history, mental or  
          physical condition, or treatment."  A person whose medical  
          information has been disclosed or used in violation of the CMIA,  
          and who has sustained economic loss or personal injury as a  
          result, may recover compensatory and punitive damages, as  
          prescribed.  
          
           This bill seeks to clarify that personal health records (PHRs),  
          including those offered as an application, are subject to CMIA  
          prohibitions.  PHRs, according the California Office of Privacy  
          Protection, "are Internet-based applications that allow you to  
          gather, store, manage, and in some cases share, information  
          about your health or the health of someone in your care."   
          Sometimes a PHR would be offered as a service by a health care  
          provider or health care plan - which would clearly be covered by  
          CMIA - but PHRs are also increasingly offered by private  
          companies that provide this service for a fee.  The company  
          maintains the medical information in one place so the individual  
          may access it or have it disclosed to the appropriate health  
          care provider.  The main benefit of a PHR is that it allows an  
          individual to manage his or her own medical information.  This  
          bill would clarify that a business that offers a PHR is covered  
          by the CMIA. The bill would also clarify business that maintains  
          medical information, as defined, is subject to CMIA, regardless  
          of whether the business was organized for that purpose or not. 

           
          Analysis Prepared by  :    Thomas Clark / JUD. / (916) 319-2334 


          FN:  
          0001421