77R16892 MCK-D                          
         By Nelson, et al.                                       S.B. No. 11
         Substitute the following for S.B. No. 11:
         By Gray                                             C.S.S.B. No. 11
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to protecting the privacy of medical records; providing
 1-3     penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Title 2, Health and Safety Code, is amended by
 1-6     adding Subtitle I to read as follows:
 1-7                        SUBTITLE I.  MEDICAL RECORDS
 1-8                    CHAPTER 181.  MEDICAL RECORDS PRIVACY
 1-9                      SUBCHAPTER A.  GENERAL PROVISIONS
1-10           Sec. 181.001.  DEFINITIONS. (a)  Unless otherwise defined in
1-11     this chapter, each term that is used in this chapter has the
1-12     meaning assigned by the Health Insurance Portability and
1-13     Accountability Act and Privacy Standards.
1-14           (b)  In this chapter:
1-15                 (1)  "Covered entity" means any person, other than an
1-16     employer, who:
1-17                       (A)  for commercial, financial, or professional
1-18     gain, monetary fees, or dues, or on a cooperative, nonprofit, or
1-19     pro bono basis, engages, in whole or in part, and with real or
1-20     constructive knowledge, in the practice of assembling, collecting,
1-21     analyzing, using, evaluating, storing, or transmitting protected
1-22     health information.  The term includes a business associate, health
1-23     care payer, governmental unit, information or computer management
1-24     entity, school, health researcher, health care facility, clinic,
 2-1     health care provider, or person who maintains an Internet site;
 2-2                       (B)  comes into possession of protected health
 2-3     information;
 2-4                       (C)  obtains or stores protected health
 2-5     information under this chapter; or
 2-6                       (D)  is an employee, agent, or contractor of a
 2-7     person described by Paragraph (A), (B), or (C) insofar as the
 2-8     employee, agent, or contractor creates, receives, obtains,
 2-9     maintains, uses, or transmits protected health information.
2-10                 (2)  "Health Insurance Portability and Accountability
2-11     Act and Privacy Standards" means the privacy requirements of the
2-12     Administrative Simplification subtitle of the Health Insurance
2-13     Portability and Accountability Act of 1996 (Pub. L. No. 104-191)
2-14     and the final rules adopted on December 28, 2000, and published at
2-15     65 Fed. Reg. 82798 et seq., and any subsequent amendments.
2-16                 (3)  "Marketing" means the promotion or advertisement,
2-17     by a covered entity, of specific products or services if the
2-18     covered entity receives, directly or indirectly, a financial
2-19     incentive or remuneration from a third party for the use, access,
2-20     or disclosure of protected health information.  Marketing does not
2-21     include a communication, for treatment or health care operations,
2-22     by a health care provider, health plan, or participants in an
2-23     organized health care arrangement or their affiliated covered
2-24     entities or business associates within the meaning of those terms
2-25     under the Health Insurance Portability and Accountability Act and
2-26     Privacy Standards.
2-27           Sec. 181.002.  APPLICABILITY. This chapter does not affect
 3-1     the validity of another statute of this state that provides greater
 3-2     confidentiality for information made confidential by this chapter.
 3-3           Sec. 181.003.  SOVEREIGN IMMUNITY. This chapter does not
 3-4     waive sovereign immunity to suit or liability.
 3-5           Sec. 181.004.  RULES. A state agency that licenses or
 3-6     regulates a covered entity may adopt rules as necessary to carry
 3-7     out the purposes of this chapter.
 3-8              (Sections 181.005-181.050 reserved for expansion
 3-9                          SUBCHAPTER B.  EXEMPTIONS
3-10           Sec. 181.051.  PARTIAL EXEMPTION.  Except for Section
3-11     181.152, this chapter does not apply to:
3-12                 (1)  a covered entity as defined in the Health
3-13     Insurance Portability and Accountability Act and Privacy Standards,
3-14     an affiliate under the covered entity's common ownership or
3-15     control, or an entity participating in an organized health care
3-16     arrangement with the covered entity;
3-17                 (2)  a business associate of a covered entity if the
3-18     business associate is acting in compliance with the Health
3-19     Insurance Portability and Accountability Act and Privacy Standards;
3-20                 (3)  a licensee as defined in Article 28B.01, Insurance
3-21     Code; or
3-22                 (4)  an entity established under Article 5.76-3,
3-23     Insurance Code.
3-24           Sec. 181.052.  PROCESSING PAYMENT TRANSACTIONS BY FINANCIAL
3-25     INSTITUTIONS.  (a)  In this section, "financial institution" has
3-26     the meaning assigned by Section 1101, Right to Financial Privacy
3-27     Act of 1978 (12 U.S.C. Section 3401), and its subsequent
 4-1     amendments.
 4-2           (b)  To the extent that a covered entity engages in
 4-3     activities of a financial institution, or authorizes, processes,
 4-4     clears, settles, bills, transfers, reconciles, or collects payments
 4-5     for a financial institution, this chapter and any rule adopted
 4-6     under this chapter does not apply to the covered entity with
 4-7     respect to those activities, including the following:
 4-8                 (1)  using or disclosing information to authorize,
 4-9     process, clear, settle, bill, transfer, reconcile, or collect a
4-10     payment for, or related to, health plan premiums or health care, if
4-11     the payment is made by any means, including a credit, debit, or
4-12     other payment card, an account, a check, or an electronic funds
4-13     transfer; and
4-14                 (2)  requesting, using, or disclosing information with
4-15     respect to a payment described by Subdivision (1):
4-16                       (A)  for transferring receivables;
4-17                       (B)  for auditing;
4-18                       (C)  in connection with a customer dispute or an
4-19     inquiry from or to a customer;
4-20                       (D)  in a communication to a customer of the
4-21     entity regarding the customer's transactions, payment card,
4-22     account, check, or electronic funds transfer;
4-23                       (E)  for reporting to consumer reporting
4-24     agencies; or
4-25                       (F)  for complying with a civil or criminal
4-26     subpoena or a federal or state law regulating the covered entity.
4-27           Sec. 181.053.  NONPROFIT AGENCIES.  The department shall by
 5-1     rule exempt from this chapter a nonprofit agency that pays for
 5-2     health care services or prescription drugs for an indigent person
 5-3     only if the agency's primary business is not the provision of
 5-4     health care or reimbursement for health care services.
 5-5           Sec. 181.054.  WORKERS' COMPENSATION. This chapter does not
 5-6     apply to:
 5-7                 (1)  workers' compensation insurance or a function
 5-8     authorized by Title 5, Labor Code; or
 5-9                 (2)  any person or entity in connection with providing,
5-10     administering, supporting, or coordinating any of the benefits
5-11     under a self-insured program for workers' compensation.
5-12           Sec. 181.055.  EMPLOYEE BENEFIT PLAN.  This chapter does not
5-13     apply to:
5-14                 (1)  an employee benefit plan; or
5-15                 (2)  any covered entity, health care entity, or other
5-16     person, insofar as the entity or person is acting in connection
5-17     with an employee benefit plan.
5-18           Sec. 181.056.  AMERICAN RED CROSS.  This chapter does not
5-19     prohibit the American Red Cross from accessing any information
5-20     necessary to perform its duties to provide disaster relief,
5-21     disaster communication, or emergency leave verification services
5-22     for military personnel.
5-23           Sec. 181.057.  INFORMATION RELATING TO OFFENDERS WITH MENTAL
5-24     IMPAIRMENTS.  This chapter does not apply to an agency described by
5-25     Section 614.017 with respect to the disclosure, receipt, transfer,
5-26     or exchange of medical and health information and records relating
5-27     to individuals in the custody of an agency or in community
 6-1     supervision.
 6-2           Sec. 181.058.  EDUCATIONAL RECORDS.  In this chapter,
 6-3     protected health information does not include:
 6-4                 (1)  education records covered by the Family
 6-5     Educational Rights and Privacy Act of 1974 (20 U.S.C. Section
 6-6     1232g) and its subsequent amendments; or
 6-7                 (2)  records described by 20 U.S.C. Section
 6-8     1232g(a)(4)(B)(iv) and its subsequent amendments.
 6-9              (Sections 181.059-181.100 reserved for expansion
6-10         SUBCHAPTER C.  ACCESS TO AND USE OF HEALTH CARE INFORMATION
6-11           Sec. 181.101.  COMPLIANCE WITH FEDERAL REGULATIONS. (a)  A
6-12     covered entity shall comply with the Health Insurance Portability
6-13     and Accountability Act and Privacy Standards relating to:
6-14                 (1)  an individual's access to the individual's
6-15     protected health information;
6-16                 (2)  amendment of protected health information;
6-17                 (3)  uses and disclosures of protected health
6-18     information, including requirements relating to consent; and
6-19                 (4)  notice of privacy practices for protected health
6-20     information.
6-21           (b)  To the extent that this chapter differs from the Health
6-22     Insurance Portability and Accountability Act and Privacy Standards,
6-23     this chapter controls if the provisions of this chapter are clearly
6-24     more restrictive than the provisions of the Health Insurance
6-25     Portability and Accountability Act and Privacy Standards.
6-26           Sec. 181.102.  INFORMATION FOR RESEARCH.  (a)  A covered
6-27     entity or health care entity may disclose protected health
 7-1     information to a person performing health research, regardless of
 7-2     the source of funding of the research, for the purpose of
 7-3     conducting health research, only if the person performing health
 7-4     research has obtained:
 7-5                 (1)  individual consent or authorization for use or
 7-6     disclosure of protected health information for research required by
 7-7     federal law;
 7-8                 (2)  the express written authorization of the
 7-9     individual required by this chapter;
7-10                 (3)  documentation that a waiver of individual consent
7-11     or authorization required for use or disclosure of protected health
7-12     information has been granted by an institutional review board or
7-13     privacy board as required under federal law; or
7-14                 (4)  documentation that a waiver of the individual's
7-15     express written authorization required by this chapter has been
7-16     granted by a privacy board established under this section.
7-17           (b)  A privacy board:
7-18                 (1)  must consist of members with varying backgrounds
7-19     and appropriate professional competency as necessary to review the
7-20     effect of the research protocol for the project or projects on the
7-21     privacy rights and related interests of the individuals whose
7-22     protected health information would be used or disclosed;
7-23                 (2)  must include at least one member who is not
7-24     affiliated with the covered entity or health care entity or an
7-25     entity conducting or sponsoring the research, and not related to
7-26     any person who is affiliated with an entity described by this
7-27     subsection; and
 8-1                 (3)  may not have any member participating in the
 8-2     review of any project in which the member has a conflict of
 8-3     interest.
 8-4           (c)  A privacy board may grant a waiver of the express
 8-5     written authorization for the use of protected health information
 8-6     if the privacy board obtains the following documentation:
 8-7                 (1)  a statement identifying the privacy board and the
 8-8     date on which the waiver of the express written authorization was
 8-9     approved by the privacy board;
8-10                 (2)  a statement that the privacy board has determined
8-11     that the waiver satisfies the following criteria:
8-12                       (A)  the use or disclosure of protected health
8-13     information involves no more than minimal risk to the affected
8-14     individuals;
8-15                       (B)  the waiver will not adversely affect the
8-16     privacy rights and welfare of those individuals;
8-17                       (C)  the research could not practicably be
8-18     conducted without the waiver;
8-19                       (D)  the research could not practicably be
8-20     conducted without access to and use of the protected health
8-21     information;
8-22                       (E)  the privacy risks to individuals whose
8-23     protected health information is to be used or disclosed are
8-24     reasonable in relation to the anticipated benefits, if any, to the
8-25     individuals and the importance of the knowledge that may reasonably
8-26     be expected to result from the research;
8-27                       (F)  there is an adequate plan to protect the
 9-1     identifiers from improper use and disclosure;
 9-2                       (G)  there is an adequate plan to destroy the
 9-3     identifiers at the earliest opportunity consistent with conduct of
 9-4     the research, unless there is a health or research justification
 9-5     for retaining the identifiers or the retention is otherwise
 9-6     required by law; and
 9-7                       (H)  there are adequate written assurances that
 9-8     the protected health information will not be reused or disclosed to
 9-9     another person or entity, except:
9-10                             (i)  as required by law;
9-11                             (ii)  for authorized oversight of the
9-12     research project; or
9-13                             (iii)  for other research for which the use
9-14     or disclosure of protected health information would be permitted by
9-15     state or federal law;
9-16                 (3)  a brief description of the protected health
9-17     information for which use or access has been determined to be
9-18     necessary by the privacy board under Subdivision (2)(D); and
9-19                 (4)  a statement that the waiver of express written
9-20     authorization has been approved by the privacy board following the
9-21     procedures under Subsection (e).
9-22           (d)  A waiver must be signed by the presiding officer of the
9-23     privacy board or the presiding officer's designee.
9-24           (e)  The privacy board must review the proposed research at a
9-25     convened meeting at which a majority of the privacy board members
9-26     are present, including at least one member who satisfies the
9-27     requirements of Subsection (b)(2).  The waiver of express written
 10-1    authorization must be approved by the majority of the privacy board
 10-2    members present at the meeting, unless the privacy board elects to
 10-3    use an expedited review procedure.  The privacy board may use an
 10-4    expedited review procedure only if the research involves no more
 10-5    than minimal risk to the privacy of the individual who is the
 10-6    subject of the protected health information of which use or
 10-7    disclosure is being sought.  If the privacy board elects to use an
 10-8    expedited review procedure, the review and approval of the waiver
 10-9    of express written authorization may be made by the presiding
10-10    officer of the privacy board or by one or more members of the
10-11    privacy board as designated by the presiding officer.
10-12          (f)  A covered entity or health care entity may disclose
10-13    protected health information to a person performing health research
10-14    if the covered entity or health care entity obtains from the person
10-15    performing the health research representations that:
10-16                (1)  use or disclosure is sought solely to review
10-17    protected health information as necessary to prepare a research
10-18    protocol or for similar purposes preparatory to research;
10-19                (2)  no protected health information is to be removed
10-20    from the covered entity or health care entity by the person
10-21    performing the health research in the course of the review; and
10-22                (3)  the protected health information for which use or
10-23    access is sought is necessary for the research purposes.
10-24          (g)  A person who is the subject of protected health
10-25    information collected or created in the course of a clinical
10-26    research trial may access the information at the conclusion of the
10-27    research trial.
 11-1          Sec. 181.103.  DISCLOSURE OF INFORMATION TO PUBLIC HEALTH
 11-2    AUTHORITY.  A covered entity may use or disclose protected health
 11-3    information without the express written authorization of the
 11-4    individual for public health activities or to comply with the
 11-5    requirements of any federal or state health benefit program or any
 11-6    federal or state law.  A covered entity may disclose protected
 11-7    health information:
 11-8                (1)  to a public health authority that is authorized by
 11-9    law to collect or receive such information for the purpose of
11-10    preventing or controlling disease, injury, or disability, including
11-11    the reporting of disease, injury, vital events such as birth or
11-12    death, and the conduct of public health surveillance, public health
11-13    investigations, and public interventions;
11-14                (2)  to a public health authority or other appropriate
11-15    government authority authorized by law to receive reports of child
11-16    or adult abuse, neglect, or exploitation; and
11-17                (3)  to any state agency in conjunction with a federal
11-18    or state health benefit program.
11-19             (Sections 181.104-181.150 reserved for expansion
11-20                      SUBCHAPTER D.  PROHIBITED ACTS
11-21          Sec. 181.151.  REIDENTIFIED INFORMATION.  A person may not
11-22    reidentify or attempt to reidentify an individual who is the
11-23    subject of any protected health information without obtaining the
11-24    individual's consent or authorization if required under this
11-25    chapter or other state or federal law.
11-26          Sec. 181.152.  MARKETING USES OF INFORMATION. (a)  A covered
11-27    entity may not disclose, use, or sell or coerce an individual to
 12-1    consent to the disclosure, use, or sale of protected health
 12-2    information, including prescription patterns, for marketing
 12-3    purposes without the consent or authorization of the individual who
 12-4    is the subject of the protected health information.
 12-5          (b)  A written marketing communication must be sent in an
 12-6    envelope showing only the addresses of sender and recipient and
 12-7    must:
 12-8                (1)  state the name and toll-free number of the health
 12-9    care entity sending the marketing communication; and
12-10                (2)  explain the recipient's right to have the
12-11    recipient's name removed from the sender's mailing list.
12-12          (c)  A person who receives a request under Subsection (b)(2)
12-13    to remove a person's name from a mailing list shall remove the
12-14    person's name not later than the fifth day after the date the
12-15    person receives the request.
12-16             (Sections 181.153-181.200 reserved for expansion
12-17                        SUBCHAPTER E.  ENFORCEMENT
12-18          Sec. 181.201.  INJUNCTIVE RELIEF; CIVIL PENALTY.  (a)  The
12-19    attorney general may institute an action for injunctive relief to
12-20    restrain a violation of this chapter.
12-21          (b)  In addition to the injunctive relief provided by
12-22    Subsection (a), the attorney general may institute an action for
12-23    civil penalties against a covered entity or health care entity for
12-24    a violation of this chapter.  A civil penalty assessed under this
12-25    section may not exceed $3,000 for each violation.
12-26          (c)  If the court in which an action under Subsection (b) is
12-27    pending finds that the violations have occurred with a frequency as
 13-1    to constitute a pattern or practice, the court may assess a civil
 13-2    penalty not to exceed $250,000.
 13-3          Sec. 181.202.  DISCIPLINARY ACTION.  In addition to the
 13-4    penalties prescribed by this chapter, a violation of this chapter
 13-5    by an individual or facility that is licensed by an agency of this
 13-6    state is subject to investigation and disciplinary proceedings,
 13-7    including probation or suspension by the licensing agency.  If
 13-8    there is evidence that the violations of this chapter constitute a
 13-9    pattern or practice, the agency may revoke the individual's or
13-10    facility's license.
13-11          Sec. 181.203.  EXCLUSION FROM STATE PROGRAMS. In addition to
13-12    the penalties prescribed by this chapter, a covered entity shall be
13-13    excluded from participating in any state-funded health care program
13-14    if there is evidence that the covered entity engaged in a pattern
13-15    or practice of violating this chapter.
13-16          Sec. 181.204.  AVAILABILITY OF OTHER REMEDIES. This chapter
13-17    does not affect any right of a person under other law to bring a
13-18    cause of action or otherwise seek relief with respect to conduct
13-19    that is a violation of this chapter.
13-20          SECTION 2.  Title 1, Insurance Code, is amended by adding
13-21    Chapter 28B to read as follows:
13-22                CHAPTER 28B.  PRIVACY OF HEALTH INFORMATION
13-23                     SUBCHAPTER A.  GENERAL PROVISIONS
13-24          Art. 28B.01.  DEFINITIONS.  In this chapter:
13-25                (1)  "Health information" means any information or data
13-26    regarding an individual, other than age or gender, whether oral or
13-27    recorded in any form or medium, that is created by or derived from
 14-1    a health care provider or the individual and that relates to:
 14-2                      (A)  the past, present, or future physical,
 14-3    mental, or behavioral health or condition of an individual;
 14-4                      (B)  the provision of health care to an
 14-5    individual; or
 14-6                      (C)  payment for the provision of health care to
 14-7    an individual.
 14-8                (2)  "Licensee" means a person who holds or is required
 14-9    to hold a license, registration, certificate of authority, or other
14-10    authority under this code or another insurance law of this state.
14-11    The term includes an insurance company, group hospital service
14-12    corporation, mutual insurance company, local mutual aid
14-13    association, statewide mutual assessment company, stipulated
14-14    premium insurance company, health maintenance organization,
14-15    reciprocal or interinsurance exchange, Lloyd's plan, fraternal
14-16    benefit society, county mutual insurer, farm mutual insurer, or
14-17    insurance agent.
14-18                (3)  "Nonpublic personal health information" means
14-19    health information:
14-20                      (A)  that identifies an individual who is the
14-21    subject of the information; or
14-22                      (B)  with respect to which there is a reasonable
14-23    basis to believe that the information could be used to identify an
14-24    individual.
14-25          Art. 28B.02.  PERSONALLY IDENTIFIABLE HEALTH INFORMATION:
14-26    PRIVACY NOTICE AND DISCLOSURE AUTHORIZATION.  (a)  A licensee must
14-27    obtain an authorization to disclose any nonpublic personal health
 15-1    information before making such a disclosure.
 15-2          (b)  The request for authorization required by this article
 15-3    may be in written or electronic form and must:
 15-4                (1)  state the identity of the consumer or customer who
 15-5    is the subject of the nonpublic personal health information;
 15-6                (2)  describe:
 15-7                      (A)  the types of nonpublic personal health
 15-8    information to be disclosed;
 15-9                      (B)  the parties to whom the licensee discloses
15-10    nonpublic personal health information;
15-11                      (C)  the purpose of the disclosure;
15-12                      (D)  how the information will be used; and
15-13                      (E)  the procedure for revoking the
15-14    authorization;
15-15                (3)  include the signature and date signed of:
15-16                      (A)  the consumer or customer who is the subject
15-17    of the nonpublic personal health information; or
15-18                      (B)  the individual who is legally empowered to
15-19    grant authority;
15-20                (4)  provide notice:
15-21                      (A)  of the length of time for which the
15-22    authorization is valid; and
15-23                      (B)  that the consumer or customer may revoke the
15-24    authorization at any time; and
15-25                (5)  specify the amount of time that the authorization
15-26    remains valid, which may not exceed 24 months.
15-27          (c)  The right of a consumer or customer to revoke an
 16-1    authorization at any time is subject to the rights of an individual
 16-2    who acted in reliance on the authorization before receiving notice
 16-3    of a revocation.
 16-4          (d)  The licensee shall retain the original or a copy of the
 16-5    authorization in the record of the individual who is the subject of
 16-6    the nonpublic personal health information.
 16-7          Art. 28B.03.  DELIVERY OF AUTHORIZATION.  (a)  A request for
 16-8    authorization and an authorization form may be delivered to a
 16-9    consumer or a customer if the request and the authorization form
16-10    are clear and conspicuous.
16-11          (b)  A licensee must include delivery of the authorization in
16-12    a notice to the consumer or customer only if the licensee intends
16-13    to disclose protected health information under this chapter.
16-14          Art. 28B.04.  EXCEPTIONS.  A licensee may disclose nonpublic
16-15    personal health information to the extent that the disclosure is
16-16    necessary to perform the following insurance functions on behalf of
16-17    that licensee:
16-18                (1)  the investigation or reporting of actual or
16-19    potential fraud, misrepresentation, or criminal activity;
16-20                (2)  underwriting;
16-21                (3)  the placement or issuance of an insurance policy;
16-22                (4)  loss control services;
16-23                (5)  ratemaking and guaranty fund functions;
16-24                (6)  reinsurance and excess loss insurance;
16-25                (7)  risk management;
16-26                (8)  case management;
16-27                (9)  disease management;
 17-1                (10)  quality assurance;
 17-2                (11)  quality improvement;
 17-3                (12)  performance evaluation;
 17-4                (13)  health care provider credentialing verification;
 17-5                (14)  utilization review;
 17-6                (15)  peer review activities;
 17-7                (16)  actuarial, scientific, medical, or public policy
 17-8    research;
 17-9                (17)  grievance procedures;
17-10                (18)  the internal administration of compliance,
17-11    managerial, and information systems;
17-12                (19)  policyholder services;
17-13                (20)  auditing;
17-14                (21)  reporting;
17-15                (22)  database security;
17-16                (23)  the administration of consumer disputes and
17-17    inquiries;
17-18                (24)  external accreditation standards;
17-19                (25)  the replacement of a group benefit plan or
17-20    workers' compensation policy or program;
17-21                (26)  activities in connection with a sale, merger,
17-22    transfer, or exchange of all or part of a business or operating
17-23    unit;
17-24                (27)  any activity that permits disclosure without
17-25    authorization under the federal Health Insurance Portability and
17-26    Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.), as
17-27    amended;
 18-1                (28)  disclosure that is required, or is a lawful or
 18-2    appropriate method to enforce the licensee's rights or the rights
 18-3    of other persons engaged, in carrying out a transaction or
 18-4    providing a product or service that the consumer requests or
 18-5    authorizes;
 18-6                (29)  claims administration, adjustment, and
 18-7    management;
 18-8                (30)  any activity otherwise permitted by law, required
 18-9    pursuant to a governmental reporting authority, or required to
18-10    comply with legal process; and
18-11                (31)  any other insurance functions that the
18-12    commissioner approves that are:
18-13                      (A)  necessary for appropriate performance of
18-14    insurance functions; and
18-15                      (B)  fair and reasonable to the interests of
18-16    consumers.
18-17          Art. 28B.05.  EXCEPTION FOR COMPLIANCE WITH FEDERAL RULES.
18-18    This subchapter does not apply to a licensee who is required to
18-19    comply with the standards governing the privacy of individually
18-20    identifiable health information adopted by the United States
18-21    Secretary of Health and Human Services under Section 262(a), Health
18-22    Insurance Portability and Accountability Act of 1996 (42 U.S.C.
18-23    Sections 1320d-1320d-8).
18-24          Art. 28B.06.  PROTECTION OF FAIR CREDIT REPORTING ACTS.
18-25    (a)  This chapter may not be construed to modify, limit, or
18-26    supersede the operation of the Fair Credit Reporting Act (15 U.S.C.
18-27    Section 1681 et seq.) and an inference may not be drawn based on
 19-1    this chapter regarding whether information is transaction or
 19-2    experience information under Section 603 of that Act (15 U.S.C.
 19-3    Section 1681a).
 19-4          (b)  This chapter does not preempt or supersede a state law
 19-5    related to medical record, health, or insurance information privacy
 19-6    that is in effect on July 1, 2002.
 19-7          Art. 28B.07.  VIOLATION; PENALTIES.  (a)  A licensee may not
 19-8    knowingly or wilfully violate this chapter.
 19-9          (b)  The department may investigate any alleged violation of
19-10    this chapter and may impose fines and other sanctions as determined
19-11    to be appropriate in accordance with Chapters 82 and 84 of this
19-12    code and the other insurance laws of this state.
19-13          Art. 28B.08.  RULES. The commissioner may adopt rules as
19-14    necessary to implement this chapter.
19-15          SECTION 3.  (a)  Chapter 181, Health and Safety Code, as
19-16    added by this Act, takes effect September 1, 2001.  A covered
19-17    entity shall comply with the requirements of Chapter 181, Health
19-18    and Safety Code, as added by this Act, not later than September 1,
19-19    2003.
19-20          (b)  Chapter 28B, Insurance Code, as added by this Act, takes
19-21    effect January 1, 2002.
19-22          (c)  The commissioner of insurance may delay the date for
19-23    compliance with Chapter 28B, Insurance Code, as added by this Act,
19-24    if the commissioner determines that an entity needs more time to
19-25    establish policies and systems to comply with the requirements of
19-26    that chapter.
19-27          (d)  An authorization or consent granting access to an
 20-1    individual's health care records executed before the effective date
 20-2    of this Act is governed by the law in effect when the authorization
 20-3    or consent was executed, and the former law continues in effect for
 20-4    that purpose.