2009 California Health and Safety Code - Section 130250-130255 :: Division 109.5. California Health Information Technology And Exchange Act

130250.  The Legislature finds and declares all of the following:
   (a) Health information technology provides tools that can improve
the quality, safety, and value of health care services. However, the
full benefit of health information technology cannot be realized
until electronic health record systems supporting the secure exchange
of individual health records are in place and used by health care
providers, payers, patients, and other individuals throughout the
state, and across state boundaries.
   (b) There is a need to promote secure electronic health data
exchange among payers, health care providers, consumers of health
care, researchers, and governmental agencies.
   (c) Health information exchange necessarily includes the sharing
of private health records and information of individuals.
Establishing the security of individual privacy rights and
confidentiality of personal health and medical records is of
paramount importance to creating public confidence in any broad-based
electronic health records system. Ensuring transparent
accountability, governance, and oversight are critical components to
maintaining the public's trust.
   (d) The American Recovery and Reinvestment Act of 2009 (ARRA)
(Public Law 111-5) includes within it the Health Information
Technology for Economic and Clinical Health Act (the HITECH Act). The
HITECH Act provides an unprecedented opportunity for California to
develop a statewide health information technology infrastructure to
improve California's health care system. It includes provisions and
federal funding to encourage the adoption and meaningful use of
health information technology and exchange.
   (e) Section 3013 of ARRA provides federal grant funds to
facilitate and expand the electronic movement and use of health
information among organizations according to nationally recognized
standards.
   (f) Lack of a timely and available health information exchange
jeopardizes the ability of the state and providers to access
available federal Medicaid and Medicare incentive payments.

130251.  (a) The California Health and Human Services Agency or one
of the departments under its jurisdiction may apply for federal funds
made available through the federal American Recovery and
Reinvestment Act of 2009 (Public Law 111-5) for health information
technology and exchange.
   (b) In the event that the California Health and Human Services
Agency or one of the departments under its jurisdiction elects not to
submit an application described in subdivision (a), the Governor
shall designate a qualified nonprofit entity to be the
state-designated entity for the purposes of health information
exchange, pursuant to the requirements set forth in ARRA.
   (c) The agency or state-designated entity shall execute tasks
related to accessing federal stimulus funds made available through
ARRA, and facilitate and expand the use and disclosure of health
information electronically among organizations according to
nationally recognized standards and implementation specifications
while protecting, to the greatest extent possible, individual privacy
and the confidentiality of electronic medical records.
   (d) The agency or state-designated entity shall develop a plan to
ensure that health information exchange capabilities are available,
adopted, and utilized statewide so that patients do not experience
disparities in access to the benefits of this technology by age,
race, ethnicity, language, income, insurance status, geography, or
otherwise.
   (e) The agency or state-designated entity shall create a plan for
a self-sustaining funding mechanism that does not include use of
General Fund moneys that shall cover all reasonable costs of the
administration of health information exchange when federal ARRA funds
expire or are exhausted.
   (f) The state-designated entity shall continually meet any
conditions for being so designated as determined by the Secretary of
California Health and Human Services. Failure to comply with this
subdivision may result in the entity losing its designation.
   (g) As a condition of receiving the state designation, the
state-designated entity shall comply with all of the following
requirements:
   (1) It shall be subject to oversight by the California Health and
Human Services Agency.
   (2) (A) It shall be governed by a board with a diverse composition
from multiple types of organizations from multiple regions
throughout the state. The governing board shall include, at a
minimum, all of the following:
   (i) The Secretary of California Health and Human Services on his
or her designee.
   (ii) The Chair of the Senate Committee on Health or his or her
designee.
   (iii) The Chair of the Assembly Committee on Health on his or her
designee.
   (iv) At least two consumer representatives, one of whom shall have
expertise in privacy and security of health information.
   (B) The majority of the board shall be comprised of
`nongovernmental employees.
   (3) If the board convenes workgroups or subcommittees, the
workgroups or subcommittees shall be comprised of representatives
from multiple types of organizations from multiple regions throughout
the state, and meetings of any workgroup or subcommittee shall be
held in an open, public, and transparent way.
   (4) It shall have nondiscrimination and conflict-of-interest
policies that demonstrate a commitment to open, fair, and
nondiscriminatory participation by stakeholders.
   (h) The state-designated entity shall report to the California
Health and Human Services Agency and the Legislature on its progress
and activities at least annually.

130255.  (a) In the event that the California Health and Human
Services Agency applies for and receives federal funds made available
through the federal American Recovery and Reinvestment Act of 2009
(Public Law 111-5) for health information technology and exchange, as
outlined in subdivision (a) of Section 130251, the California Health
Information Technology and Exchange Fund is hereby created in the
State Treasury.
   (b) All moneys in the California Health Information Technology and
Exchange Fund shall be available, upon appropriation by the
Legislature, for purposes related to health information technology
and exchange.
   (c) The California Health Information Technology and Exchange Fund
shall consist of, but is not limited to, federal funds made
available through ARRA for health information technology and
exchange. Notwithstanding Section 16305.7 of the Government Code, any
interest and dividends earned on deposits in the fund shall be
retained in the fund for purposes of this division.
   (d) It is the intent of the Legislature that the activities
associated with health information exchange be funded solely through
the following:
   (1) Federal funds.
   (2) Private contributions identified by the state, the
state-designated entity, or any relevant advisory panel convened by
the California Health and Human Services Agency.
   (3) Funds generated by the self-sustaining funding mechanism to be
established by the California Health and Human Services Agency or
one of its departments, or the state-designated entity.