| TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | SB622 by Nelson (Relating to the privacy of protected health information and personal information; providing civil and criminal penalties.), As Introduced |
The provisions of the bill that are the subject of this analysis are provisions dealing with the enhancement of sanctions for criminal offenses. The bill would amend the Business & Commerce Code by enhancing the punishment for the offense of identity theft by electronic device from a Class B Misdemeanor to a state jail felony if the offense involves protected health information. The bill would amend the Penal Code by enhancing the punishment for the offense of breach of computer security from a Class B Misdemeanor to a state jail felony if the offense involves protected health information. The bill would also amend the Penal Code by enhancing the punishment prescribed for the offense of theft, the punishment prescribed for the offense of fraudulent use or possession of identifying information, and the punishment prescribed for the offense of Medicaid fraud to the next highest category of offense if the offense involves protected health information; the enhancement provisions would not apply to an offense punishable as a felony of the first degree.
A Class C Misdemeanor is punishable by a fine not to exceed $500 (up to 180 days of deferred disposition; no confinement). A Class B Misdemeanor is punishable by confinement in county jail for a term not to exceed 180 days and/or a fine not to exceed $2,000. A Class A Misdemeanor is punishable by confinement in county jail for a term not to exceed one year and/or a fine not to exceed $4,000. A state jail felony is punishable by confinement in a state jail for a term from 180 days to 2 years and, in addition to confinement, an optional fine not to exceed $10,000 or Class A Misdemeanor punishment (mandatory post conviction community supervision). A felony of the third degree is punishable by confinement in prison for a term from 2 to 10 years and, in addition to confinement, an optional fine not to exceed $10,000. A felony of the second degree is punishable by confinement in prison for a term from 2 to 20 years and, in addition to confinement, an optional fine not to exceed $10,000. A felony of the first degree is punishable by confinement in prison for life or a term from 5 to 99 years and, in addition to confinement, an optional fine not to exceed $10,000.
Increasing the penalty for any criminal offense is expected to result in increased demands upon the correctional resources of counties or of the State due to longer terms of supervision in the community, or longer terms of confinement in county jail, state jail or prison. When an offense is changed from a misdemeanor to a felony, there is a transfer of the burden of confinement of convicted offenders from the counties to the State.
The impact of the bill on correctional populations would depend on how many persons would be prosecuted under the provisions of the bill, and the extent to which punishment would be enhanced under the proposed statute compared to existing statute. In fiscal year 2010, approximately 2,837 people were arrested and 872 of those arrested in fiscal year 2010 were placed on misdemeanor community supervision for the offense of theft punishable as a Class A Misdemeanor. In fiscal year 2010, less than 20 people were arrested and 15 of those arrested in fiscal year 2010 were placed on misdemeanor community supervision for the offense of fraudulent use or possession of identifying information punishable as a Class A Misdemeanor. In fiscal year 2010, less than 10 people were arrested and less than 10 of those arrested in fiscal year 2010 were placed on misdemeanor community supervision for the offense of breach of computer security punishable as a Class A Misdemeanor. In fiscal year 2010, less than 5 people were arrested and less than 5 of those arrested in fiscal year 2010 were placed on misdemeanor community supervision for the offense of Medicaid fraud punishable as a Class A Misdemeanor. Because the punishment enhancement provisions of the bill would only apply to specific offenses involving protected health information as defined by the Health Insurance Portability and Accountability Act and Privacy Standards, the impact of the enhancement provisions of the bill are not anticipated to be substantial. For this analysis, it is assumed the number of offenders convicted under this statute would not result in a significant impact on the programs and workload of state corrections agencies or on the demand for resources and services of those agencies.
| Source Agencies: |
| LBB Staff: | JOB, GG, LM, ADM
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