BILL NUMBER: AB 2797 CHAPTERED 09/01/00 CHAPTER 278 FILED WITH SECRETARY OF STATE SEPTEMBER 1, 2000 APPROVED BY GOVERNOR AUGUST 31, 2000 PASSED THE SENATE AUGUST 18, 2000 PASSED THE ASSEMBLY MAY 25, 2000 AMENDED IN ASSEMBLY MAY 2, 2000 INTRODUCED BY Assembly Member Papan FEBRUARY 28, 2000 An act to amend the heading of Chapter 5 (commencing with Section 56.26) of Part 2.6 of Division 1 of, and to add Section 56.265 to, the Civil Code, relating to medical information confidentiality. LEGISLATIVE COUNSEL'S DIGEST AB 2797, Papan. Confidentiality of health, medical, or genetic information. The Confidentiality of Medical Information Act places certain restrictions on the disclosure of patient medical information and other related information by health care providers, health care service plans, and various other parties. A violation of these provisions is a crime, and also subjects a person in violation of these provisions to administrative fines or civil penalties. This bill would provide that a person or entity that underwrites or sells annuity contracts or contracts insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability, or death, and any affiliate of that person or entity, shall not disclose individually identifiable information concerning the health of, or the medical or genetic history of, a customer, as specified, for use with regard to the granting of credit. Because a violation of the bill's provisions would be a crime, this bill would impose a state-mandated local program by creating a new crime. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The heading of Chapter 5 (commencing with Section 56.26) of Part 2.6 of Division 1 of the Civil Code is amended to read: CHAPTER 5. USE AND DISCLOSURE OF MEDICAL AND OTHER INFORMATION BY THIRD PARTY ADMINISTRATORS AND OTHERS SEC. 2. Section 56.265 is added to the Civil Code, to read: 56.265. A person or entity that underwrites or sells annuity contracts or contracts insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability, or death, and any affiliate of that person or entity, shall not disclose individually identifiable information concerning the health of, or the medical or genetic history of, a customer, to any affiliated or nonaffiliated depository institution, or to any other affiliated or nonaffiliated third party for use with regard to the granting of credit. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.