SB 1171 Prohibits the disclosure of nonpublic health information
LR Number:4791S.01I Fiscal Note:4791-01
Committee:Financial and Governmental Organization
Last Action:03/11/02 - Hearing Conducted S Financial & Governmental Journal page:
Organizaitons, Veterans Affairs & Elections Committee
Effective Date:August 28, 2002
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Current Bill Summary

SB 1171 - This act prohibits the disclosure of non-public health information. A new Section 191.890 is created to define terms such as "federal privacy rules", "health information", and "nonpublic personal health information".

This act prohibits the disclosure of personal health information for the following purposes: - for profit; - for marketing of goods or services; - to aid in an employment decision; - for decisions regarding a persons' credit; - to deliberately or maliciously cause harm to the person to whom the information pertains.

Any person who knowingly violates the provisions of this section will be charged an administrative penalty of up to $500 and may be civilly liable. The Director of the Department of Insurance shall enforce this act.

Licensees (insurance companies) complying with HIPAA privacy rules will be deemed in compliance with this act. Until April 14, 2003, non-licensees subject to federal law will be in compliance with this act upon a showing of good faith. Personal health information, however, may not be disclosed for marketing purposes even if compliance is established. Licensees complying with the model regulation, "Privacy of Consumer Financial and Health Information Regulation", will also be deemed in compliance.

This act does not apply to information disclosed in for the following purposes: - if prior written consent is given; - if disclosure is pursuant to state or federal law; - for consumer reporting purposes; - in connection with the transfer of a business, operating unit, or loans if the disclosure is not the primary reason for the transfer.

This act is identical to HB 1425 (2002).