REPORT TITLE:
Health Care Information


DESCRIPTION:
Requires Director of OIP to proceed against any person violating
medical records confidentiality law to issue an order to cease
and desist at a contested case hearing.  Provides for injunctive
relief to enjoin a person from concealing, removing, encumbering,
or disposing of assets that may be required to pay a civil
penalty.  Appropriates funds to OIP.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2004 
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PRIVACY OF HEALTH CARE INFORMATION.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 323C, Hawaii Revised Statutes, is
 
 2 amended by adding a new section to be appropriately designated
 
 3 and to read as follows:
 
 4      "§323C-    Injunctive relief.  (a)  Whenever the director of
 
 5 the office of information practices has reason to believe that
 
 6 any person has engaged, is engaging, or is about to engage in any
 
 7 activity which makes the person subject to a civil monetary
 
 8 penalty under section 323C-53, the director of the office of
 
 9 information practices may bring an action in an appropriate
 
10 circuit court to enjoin that activity, or to enjoin the person
 
11 from concealing, removing, encumbering, or disposing of assets
 
12 which may be required in order to pay a civil monetary penalty if
 
13 the penalty were to be imposed or to seek other appropriate
 
14 relief.
 
15      (b)  A principal is liable for penalties under section
 
16 323C-53 for the actions of the principal's agent acting within
 
17 the scope of the agency."
 
18      SECTION 2.  Section 323C-53, Hawaii Revised Statutes, is
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1 amended to read as follows:
 
 2      "[[]§323C-53[]]  Cease and desist orders; civil penalty.
 
 3 (a)  [A court shall issue and cause to be served upon a person,
 
 4 who has violated any provision of this chapter, a copy of the
 
 5 court's findings and an order requiring the person to cease and
 
 6 desist from violating this chapter, or to otherwise comply with
 
 7 the requirements of this chapter.  The court may also order any
 
 8 one or more of the following:] Whenever the director of the
 
 9 office of information practices shall have reason to believe that
 
10 any person has materially and substantially violated any
 
11 provision of this chapter, and that a proceeding by the director
 
12 would be in the interest of the public, the director shall issue
 
13 and serve upon the person:
 
14      (1)  A statement of the charges; and
 
15      (2)  A notice of a hearing, to be held at a time and place
 
16           fixed in the notice, which shall not be less than
 
17           fifteen days after the date of service.
 
18      (b)  At the time and place fixed for the hearing, the person
 
19 shall have an opportunity to be heard and to show cause why an
 
20 order should not be made by the director requiring the person to
 
21 cease and desist from the acts, methods, or practices which are
 
22 the subject of the statement or otherwise to comply with the
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        


 1 requirements of this chapter.
 
 2      (c)  The hearing shall be deemed a contested case hearing
 
 3 pursuant to chapter 91.
 
 4      (d)  All remedies, penalties, and proceedings set forth in
 
 5 this section shall be invoked solely and exclusively by the
 
 6 director.
 
 7      (e)  If, after the hearing, the director determines that the
 
 8 person charged has violated any provision of this chapter, the
 
 9 director shall reduce the findings to writing and shall issue and
 
10 cause to be served upon the person charged with the violation a
 
11 copy of the findings and an order requiring the person to cease
 
12 and desist from violating this chapter or otherwise to comply
 
13 with the requirements of this chapter.  The director may also, at
 
14 the director's discretion, order any one or more of the
 
15 following:
 
16      (1)  For any violation of part II of this chapter, payment
 
17           of a civil penalty of not more than $500 for each and
 
18           every act or violation but not to exceed $5,000 in the
 
19           aggregate for multiple violations;
 
20      (2)  For [a knowing violation] any violation of part III of
 
21           this chapter, payment of a civil penalty of not more
 
22           than $25,000 for each and every act or violation but
 

 
 
 
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 1           not to exceed $100,000 in the aggregate for multiple
 
 2           violations; and
 
 3      (3)  For violations of this chapter that have occurred with
 
 4           such frequency as to constitute a general business
 
 5           practice, a civil penalty of $100,000.
 
 6      [(b)] (f)  Any person who violates a cease and desist order
 
 7 or injunction issued under this section may be subject to a civil
 
 8 penalty of not more than $10,000 for each and every act in
 
 9 violation of the cease and desist order.
 
10      [(c)] (g)  No order or injunction issued under this section
 
11 shall in any way relieve or absolve any person affected by the
 
12 order from any other liability, penalty, or forfeiture required
 
13 by law.
 
14      (h)  No fact found or decision made in a hearing held under
 
15 this section shall be binding on any party in any subsequent
 
16 civil action to recover damages based upon the same or similar
 
17 facts.
 
18      (i)  Any person aggrieved by an order of the director under
 
19 this section may obtain judicial review of the order in the
 
20 manner provided for by chapter 91.
 
21      (j)  The powers vested in the director by this chapter shall
 
22 be additional to any other power to enforce penalties or civil
 

 
 
 
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                                     H.B. NO.           
                                                        
                                                        


 1 penalties authorized by law with respect to the methods, acts,
 
 2 and practices which violate this chapter.
 
 3      [(d)] (k)  Any civil penalties collected under this section
 
 4 shall be deposited into the general fund."
 
 5      SECTION 3.  There is appropriated out of the general
 
 6 revenues of the State of Hawaii the sum of $          , or so
 
 7 much thereof as may be necessary for fiscal year 2000-2001.
 
 8      SECTION 4.  The sum appropriated shall be expended by the
 
 9 office of information practices for the purposes of this Act,
 
10 including the hiring of necessary staff.
 
11      SECTION 5.  Statutory material to be repealed is bracketed.
 
12 New statutory material is underscored.
 
13      SECTION 6.  This Act shall take effect on July 1, 2000.
 
14 
 
15                              INTRODUCED BY:______________________