BILL NUMBER: SB 974	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Anderson
   (Coauthor: Senator Torres)

                        FEBRUARY 11, 2014

   An act to add Section 100509 to the Government Code, relating to
health care coverage, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 974, as introduced, Anderson. California Health Benefit
Exchange: confidentiality of personal information.
   Existing law, the federal Patient Protection and Affordable Care
Act (PPACA), requires each state to establish an American Health
Benefit Exchange by January 1, 2014, that makes available qualified
health plans to qualified individuals and small employers. PPACA
prohibits an Exchange from using or disclosing the personally
identifiable information it creates or collects other than to the
extent necessary to carry out specified functions. Existing law also
requires an Exchange to establish and implement privacy and security
standards that are consistent with specified principles and to
require the same or more stringent privacy and security standards as
a condition of contract or agreement with individuals or entities. A
person who knowingly and willfully uses or discloses information in
violation of PPACA is subject to a civil penalty of no more than
$25,000 per person or entity, per use or disclosure, in additional to
any other penalties prescribed by law.
   Existing state law establishes the California Health Benefit
Exchange within state government, specifies the powers and duties of
the board governing the Exchange, and requires the board to
facilitate the purchase of qualified health plans through the
Exchange by qualified individuals and small employers by January 1,
2014. Existing law requires the board to employ necessary staff and
authorizes the board to enter into contracts. Under existing law, the
board of the Exchange is required to submit fingerprint images to
the Department of Justice for all employees, prospective employees,
contractors, subcontractors, volunteers, or vendors of the Exchange
whose duties include access to specified personal information for the
purposes of obtaining state or federal conviction records, as
specified.
   This bill would prohibit the Exchange, or any of its employees,
agents, subcontractors, representatives, or partners from disclosing
an individual's personal information, as defined, to any other person
or entity without explicit permission from the individual. The bill
would also require the Exchange to report a disclosure of personal
information in violation of these provisions to the individuals
affected and to the appropriate policy committees of the Legislature
within 5 business days of the date the disclosure is discovered.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 100509 is added to the Government Code, to
read:
   100509.  (a) The Exchange, or any of its employees, agents,
subcontractors, representatives, or partners, shall not disclose an
individual's personal information to any other person or entity
without explicit permission from the individual.
   (b) If the Exchange discovers that personal information has been
disclosed in violation of subdivision (a), the Exchange shall report
the incident to the individuals affected and to the appropriate
policy committees of the Legislature within five business days of the
date the disclosure is discovered.
   (c) For purposes of this section, "personal information" means any
information that an individual has submitted to the Exchange through
the Exchange's Internet Web site, call center, or other technology,
or in person through the Exchange's employees, agents,
subcontractors, representatives, or partners.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   Protecting Californian's privacy rights is of the utmost
importance, and in order to protect the privacy rights of individuals
applying for health care coverage through the California Health
Benefit Exchange at the earliest possible time, it is necessary that
this act take effect immediately.