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.  Appropriates funds to
OIP.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2004 
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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 would make 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 seek other appropriate
 
11 relief.
 
12      (b)  A principal is liable for penalties under section
 
13 323C-53 for the actions of the principal's agent acting within
 
14 the scope of the agency."
 
15      SECTION 2.  Section 323C-53, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "[[]§323C-53[]]  Cease and desist orders; civil penalty.
 
18 (a)  [A court shall issue and cause to be served upon a person,
 
19 who has violated any provision of this chapter, a copy of the
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1 court's findings and an order requiring the person to cease and
 
 2 desist from violating this chapter, or to otherwise comply with
 
 3 the requirements of this chapter.  The court may also order any
 
 4 one or more of the following:] Whenever the director of the
 
 5 office of information practices has reason to believe that any
 
 6 person has materially and substantially violated any provision of
 
 7 this chapter, and that a proceeding by the director would be in
 
 8 the interest of the public, the director shall issue and serve
 
 9 upon the person:
 
10      (1)  A statement of the charges; and
 
11      (2)  A notice of a hearing, to be held at a time and place
 
12           fixed in the notice, which shall not be less than
 
13           fifteen days after the date of service.
 
14      (b)  At the time and place fixed for the hearing, the person
 
15 shall have an opportunity to be heard and to show cause why an
 
16 order should not be made by the director requiring the person to
 
17 cease and desist from the acts, methods, or practices which are
 
18 the subject of the statement or otherwise to comply with the
 
19 requirements of this chapter.
 
20      (c)  The hearing shall be deemed a contested case hearing
 
21 pursuant to chapter 91.
 
22      (d)  All remedies, penalties, and proceedings set forth in
 
23 this section shall be invoked solely and exclusively by the
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1 director.
 
 2      (e)  If, after the hearing, the director determines that the
 
 3 person charged has violated any provision of this chapter, the
 
 4 director shall reduce the findings to writing and shall issue and
 
 5 cause to be served upon the person charged with the violation a
 
 6 copy of the findings and an order requiring the person to cease
 
 7 and desist from violating this chapter or otherwise to comply
 
 8 with the requirements of this chapter.  The director, at the
 
 9 director's discretion, may also order any one or more of the
 
10 following:
 
11      (1)  For any violation of part II of this chapter, payment
 
12           of a civil penalty of not more than $500 for each and
 
13           every act or violation but not to exceed $5,000 in the
 
14           aggregate for multiple violations;
 
15      (2)  For [a knowing violation] any violation of part III of
 
16           this chapter, payment of a civil penalty of not more
 
17           than $25,000 for each and every act or violation but
 
18           not to exceed $100,000 in the aggregate for multiple
 
19           violations; and
 
20      (3)  For violations of this chapter that have occurred with
 
21           such frequency as to constitute a general business
 
22           practice, a civil penalty of $100,000.
 
23      [(b)] (f)  Any person who violates a cease and desist order
 

 
Page 4                                                     2004 
                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1 or injunction issued under this section may be subject to a civil
 
 2 penalty of not more than $10,000 for each and every act in
 
 3 violation of the cease and desist order.
 
 4      [(c)] (g)  No order or injunction issued under this section
 
 5 shall in any way relieve or absolve any person affected by the
 
 6 order from any other liability, penalty, or forfeiture required
 
 7 by law.
 
 8      (h)  No fact found or decision made in a hearing held under
 
 9 this section shall be binding on any party in any subsequent
 
10 civil action to recover damages based upon the same or similar
 
11 facts.
 
12      (i)  Any person aggrieved by an order of the director under
 
13 this section may obtain judicial review of the order in the
 
14 manner provided for by chapter 91.
 
15      (j)  The powers vested in the director by this chapter shall
 
16 be additional to any other power to enforce penalties or civil
 
17 penalties authorized by law with respect to the methods, acts,
 
18 and practices which violate this chapter.
 
19      [(d)] (k)  Any civil penalties collected under this section
 
20 shall be deposited into the general fund."
 
21      SECTION 3.  There is appropriated out of the general
 
22 revenues of the State of Hawaii the sum of $          , or so
 
23 much thereof as may be necessary for fiscal year 2000-2001.
 

 
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                                     H.B. NO.           H.D. 1
                                                        
                                                        


 1      SECTION 4.  The sum appropriated shall be expended by the
 
 2 office of information practices for the purposes of this Act,
 
 3 including the hiring of necessary staff.
 
 4      SECTION 5.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 6.  This Act shall take effect on July 1, 2000.