BILL NUMBER: AB 174	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 13, 2012
	AMENDED IN ASSEMBLY  MARCH 21, 2011

INTRODUCED BY   Assembly Member Monning

                        JANUARY 24, 2011

   An act to add Section  130280.5   12803.2
 to the  Health and Safety   Government
 Code, relating to  health information  
state government  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 174, as amended, Monning.  Health information exchange.
  Office of Systems Integration: California Health and
Human Services Automation Fund.  
   Existing law establishes the Office of Systems Integration and
requires that office to implement a statewide automated welfare
system for specified public assistance programs.  
   This bill would establish the California Health and Human Services
Automation Fund within the State Treasury and would, upon
appropriation by the Legislature, expend specified moneys deposited
into the fund for services rendered by the office. Certain funds
would only be transferred to the fund upon order of the Department of
Finance, as specified.  
   Existing law establishes the Office of Health Information
Integrity within the California Health and Human Services Agency to
ensure the enforcement of state law mandating confidentiality of
medical information and to impose administrative fines for the
unauthorized use of medical information. Existing law authorizes the
office to establish and administer demonstration projects to evaluate
potential solutions to facilitate health information exchange that
promote quality of care, respect the privacy and security of personal
health information, and enhance the trust of the stakeholders.
 
   This bill would require the system of electronic health records
developed based on the demonstration projects established pursuant to
these provisions 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, and would require the office to ensure that there are
opportunities for public comment and input on the development of
those policies. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    Section 12803.2 is added to the 
 Government Code  , to read:  
   12803.2.  (a) There is hereby established in the State Treasury,
the California Health and Human Services Automation Fund. The moneys
in the fund shall be available upon appropriation by the Legislature
for expenditure by the Office of Systems Integration, established
pursuant to Section 12803.3, for support of that office.
   (b) The fund shall consist of the following:
   (1) All moneys appropriated to the fund in accordance with law.
   (2) The balance of all moneys available for expenditure by the
Systems Integration Division of the Office of Technology Services.
   (3) An amount of funding transferred from the Department of
Technology Services Revolving Fund to this fund determined by the
Department of Finance.
   (4) Funds appropriated to the State Department of Social Services
in the annual Budget Act for the management, including as needed,
procurement, design, development, testing, implementation, oversight,
and maintenance, of the following projects shall be transferred to
this fund upon order of the Department of Finance:
   (A) Statewide Automated Welfare System (SAWS) including WCDS,
C-IV, LEADER, LRS, and the migration of C-IV to LRS pursuant to
Section 10823 of the Welfare and Institutions Code, as amended by
Section 9 of Chapter 13 of the First Extraordinary Session of the
Statutes of 2011.
   (B) Child Welfare Services/Case Management System (CWS/CMS).
   (C) Electronic Benefit Transfer (EBT).
   (D) Statewide Fingerprinting Imaging System (SFIS).
   (E) Case Management Information Payrolling System (CMIPS)
Reprocurement.
   (5) (A) Funds appropriated to the Employment Development
Department in the annual Budget Act for the management, including
procurement, design, development, testing, implementation, oversight,
and maintenance, of the Unemployment Insurance Modernization project
shall be transferred to the fund upon order of the Department of
Finance.
   (B) On or before full expenditure of federal Reed Act funds, the
Department of Finance and the Employment Development Department shall
determine the appropriate timeframe to transfer the project
management and the associated resources for the Unemployment
Insurance Modernization Project to the Employment Development
Department.
   (6) Funds appropriated to the Department of Health Care Services
and the Managed Risk Medical Insurance Board in the annual Budget Act
for the management, including procurement, design, development,
testing, implementation, oversight, and maintenance, of the
California Healthcare Eligibility, Enrollment, and Retention System
shall be transferred to the fund from the Department of Finance.
   (7) Funds from the California Health Benefit Exchange may be
transferred upon order of the Department of Finance pursuant to an
interagency agreement between the California Health Benefit Exchange
and the Office of Systems Integration to support the California
Healthcare Eligibility, Enrollment, and Retention System. 

  SECTION 1.    Section 130280.5 is added to the
Health and Safety Code, to read:
   130280.5.  (a) The Legislature finds and declares all of the
following:
   (1) The primary purpose of the implementation of electronic health
records is to ensure that the system is designed to enhance patient
treatment and outcomes.
   (2) Patient trust is essential to patient acceptance of a system
of electronic health records, and thus establishing patient trust is
necessary in order for the system to enhance patient treatment and
outcomes.
   (3) Protection of patient privacy and security, which is
epitomized by doctor-patient confidentiality, is essential in
building patient trust.
   (b) The system of electronic health records developed based on the
demonstration projects established pursuant to this division shall
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, and the office
shall ensure that there are opportunities for public comment and
input on the development of those policies.