House File 381 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON HUMAN
                                  RESOURCES

                              (SUCCESSOR TO HSB 100)
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                                   A BILL FOR
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                                         House File 381

                             AN ACT
 RELATING TO THE IOWA HEALTH INFORMATION NETWORK, AND INCLUDING
    EFFECTIVE DATE PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                           DIVISION I
  IOWA HEALTH INFORMATION NETWORK == FUTURE ADMINISTRATION BY
                        DESIGNATED ENTITY
    Section 1.  NEW SECTION.  135D.1  Short title.
    This chapter shall be known and may be cited as the "Iowa
 Health Information Network Act".
    Sec. 2.  NEW SECTION.  135D.2  Definitions.
    As used in this chapter, unless the context otherwise
 requires:
    1.  "Board of directors" or "board" means the entity that
 governs and administers the Iowa health information network.
    2.  "Care coordination" means the management of all aspects
 of a patient's care to improve health care quality.
    3.  "Department" means the department of public health.
    4.  "Designated entity" means the nonprofit corporation
 designated by the department through a competitive process as
 the entity responsible for administering and governing the Iowa
 health information network.
    5.  "Exchange" means the authorized electronic sharing of
 health information between health care professionals, payors,
 consumers, public health agencies, the designated entity, the
 department, and other authorized participants utilizing the
 Iowa health information network and Iowa health information
 network services.
    6.  "Health care professional" means a person who is
 licensed, certified, or otherwise authorized or permitted by
 the law of this state to administer health care in the ordinary
 course of business or in the practice of a profession.
    7.  "Health information" means health information as defined
 in 45 C.F.R. {160.103 that is created or received by an
 authorized participant.
    8.  "Health information technology" means the application
 of information processing, involving both computer hardware
 and software, that deals with the storage, retrieval, sharing,
 and use of health care information, data, and knowledge for
 communication, decision making, quality, safety, and efficiency
 of clinical practice, and may include but is not limited to:
    a.  An electronic health record that electronically compiles
 and maintains health information that may be derived from
 multiple sources about the health status of an individual and
 may include a core subset of each care delivery organization's
 electronic medical record such as a continuity of care record
 or a continuity of care document, computerized physician order
 entry, electronic prescribing, or clinical decision support.
    b.  A personal health record through which an individual and
 any other person authorized by the individual can maintain and
 manage the individual's health information.
    c.  An electronic medical record that is used by health care
 professionals to electronically document, monitor, and manage
 health care delivery within a care delivery organization, is
 the legal record of the patient's encounter with the care
 delivery organization, and is owned by the care delivery
 organization.
    d.  A computerized provider order entry function that permits
 the electronic ordering of diagnostic and treatment services,
 including prescription drugs.
    e.  A decision support function to assist physicians and
 other health care providers in making clinical decisions by
 providing electronic alerts and reminders to improve compliance
 with best practices, promote regular screenings and other
 preventive practices, and facilitate diagnosis and treatments.
    f.  Tools to allow for the collection, analysis, and
 reporting of information or data on adverse events, the quality
 and efficiency of care, patient satisfaction, and other health
 care=related performance measures.
    9.  "Health Insurance Portability and Accountability Act"
 or "HIPAA" means the federal Health Insurance Portability and
 Accountability Act of 1996, Pub. L. No. 104=191, including
 amendments thereto and regulations promulgated thereunder.
    10.  "Hospital" means a licensed hospital as defined in
 section 135B.1.
    11.  "Interoperability" means the ability of two or more
 systems or components to exchange information or data in an
 accurate, effective, secure, and consistent manner and to use
 the information or data that has been exchanged and includes
 but is not limited to:
    a.  The capacity to connect to a network for the purpose of
 exchanging information or data with other users.
    b.  The ability of a connected, authenticated user to
 demonstrate appropriate permissions to participate in the
 instant transaction over the network.
    c.  The capacity of a connected, authenticated user to
 access, transmit, receive, and exchange usable information with
 other users.
    12.  "Iowa health information network" or "network" means the
 statewide health information technology network that is the
 sole statewide network for Iowa pursuant to this chapter.
    13.  "Iowa Medicaid enterprise" means the centralized
 medical assistance program infrastructure, based on a business
 enterprise model, and designed to foster collaboration among
 all program stakeholders by focusing on quality, integrity, and
 consistency.
    14.  "Participant" means an authorized health care
 professional, payor, patient, health care organization, public
 health agency, or the department that has agreed to authorize,
 submit, access, or disclose health information through the Iowa
 health information network in accordance with this chapter
 and all applicable laws, rules, agreements, policies, and
 standards.
    15.  "Patient" means a person who has received or is
 receiving health services from a health care professional.
    16.  "Payor" means a person who makes payments for health
 services, including but not limited to an insurance company,
 self=insured employer, government program, individual, or other
 purchaser that makes such payments.
    17.  "Protected health information" means protected health
 information as defined in 45 C.F.R. {160.103 that is created or
 received by an authorized participant.
    18.  "Public health activities" means actions taken by a
 participant in its capacity as a public health authority under
 the Health Insurance Portability and Accountability Act or as
 required or permitted by other federal or state law.
    19.  "Public health agency" means an entity that is governed
 by or contractually responsible to a local board of health or
 the department to provide services focused on the health status
 of population groups and their environments.
    20.  "Record locator service" means the functionality of the
 Iowa health information network that queries data sources to
 locate and identify potential patient records.
    Sec. 3.  NEW SECTION.  135D.3  Iowa health information network
 == findings and intent.
    1.  The general assembly finds all of the following:
    a.  Technology used to support health care=related functions
 is known as health information technology. Health information
 technology provides a mechanism to transform the delivery of
 health and medical care in Iowa and across the nation.
    b.  Health information technology is rapidly evolving to
 contribute to the goals of improving the experience of care,
 improving the health of populations, and reducing per capita
 costs of health care.
    c.  A health information network involves the secure
 electronic sharing of health information across the boundaries
 of individual practice and institutional health settings and
 with consumers. The broad use of health information technology
 and a health information network should improve health care
 quality and the overall health of the population, increase
 efficiencies in administrative health care, reduce unnecessary
 health care costs, and help prevent medical errors.
    d.  All health information technology efforts shall endeavor
 to represent the interests and meet the needs of consumers and
 the health care sector, protect the privacy of individuals
 and the confidentiality of individuals' information, promote
 best practices, and make information easily accessible to
 the members of the patient=centered care coordination team,
 including but not limited to patients, providers, and payors.
    2.  It is the intent of the general assembly that the Iowa
 health information network shall not constitute a health
 benefit network or a health insurance network.
    Sec. 4.  NEW SECTION.  135D.4  Iowa health information network
 == principles == technical infrastructure requirements.
    1.  The Iowa health information network shall be
 administered and governed by a designated entity using, at a
 minimum, the following principles:
    a.  Be patient=centered and market=driven.
    b.  Comply with established national standards.
    c.  Protect the privacy of consumers and the security and
 confidentiality of all health information.
    d.  Promote interoperability.
    e.  Increase the accuracy, completeness, and uniformity of
 data.
    f.  Preserve the choice of the patient to have the patient's
 health information available through the record locator
 service.
    g.  Provide education to the general public and provider
 communities on the value and benefits of health information
 technology.
    2.  Widespread adoption of health information technology is
 critical to a successful Iowa health information network and is
 best achieved when all of the following occur:
    a.  The network, through the designated entity complying
 with chapter 504 and reporting as required under this chapter,
 operates in an entrepreneurial and businesslike manner in which
 it is accountable to all participants utilizing the network's
 products and services.
    b.  The network provides a variety of services from which to
 choose in order to best fit the needs of the user.
    c.  The network is financed by all who benefit from the
 improved quality, efficiency, savings, and other benefits that
 result from use of health information technology.
    d.  The network is operated with integrity and freedom from
 political influence.
    3.  The Iowa health information network technical
 infrastructure shall provide a mechanism for all of the
 following:
    a.  The facilitation and support of the secure electronic
 exchange of health information between participants.
    b.  Participants without an electronic health records system
 to access health information from the Iowa health information
 network.
    4.  Nothing in this chapter shall be interpreted to
 impede or preclude the formation and operation of regional,
 population=specific, or local health information networks
 or the participation of such networks in the Iowa health
 information network.
    Sec. 5.  NEW SECTION.  135D.5  Designated entity ==
 administration and governance.
    1.  The Iowa health information network shall be
 administered and governed by a designated entity selected by
 the department through a competitive process. The designated
 entity shall be established as a nonprofit corporation
 organized under chapter 504. Unless otherwise provided in
 this chapter, the corporation is subject to the provisions of
 chapter 504. The designated entity shall be established for
 the purpose of administering and governing the statewide Iowa
 health information network.
    2.  The designated entity shall collaborate with the
 department, but the designated entity shall not be considered,
 in whole or in part, an agency, department, or administrative
 unit of the state.
    a.  The designated entity shall not be required to comply
 with any requirements that apply to a state agency, department,
 or administrative unit and shall not exercise any sovereign
 power of the state.
    b.  The designated entity does not have authority to pledge
 the credit of the state.  The assets and liabilities of
 the designated entity shall be separate from the assets and
 liabilities of the state and the state shall not be liable
 for the debts or obligations of the designated entity. All
 debts and obligations of the designated entity shall be payable
 solely from the designated entity's funds. The state shall
 not guarantee any obligation of or have any obligation to the
 designated entity.
    3.  The articles of incorporation of the designated entity
 shall provide for its governance and its efficient management.
 In providing for its governance, the articles of the designated
 entity shall address the following:
    a.  A board of directors to govern the designated entity.
    b.  The appointment of a chief executive officer by the board
 to manage the designated entity's daily operations.
    c.  The delegation of such powers and responsibilities to the
 chief executive officer as may be necessary for the designated
 entity's efficient operation.
    d.  The employment of personnel necessary for the efficient
 performance of the duties assigned to the designated entity.
 All such personnel shall be considered employees of a private,
 nonprofit corporation and shall be exempt from the personnel
 requirements imposed on state agencies, departments, and
 administrative units.
    e.  The financial operations of the designated entity
 including the authority to receive and expend funds from public
 and private sources and to use its property, money, or other
 resources for the purpose of the designated entity.
    Sec. 6.  NEW SECTION.  135D.6  Board of directors ==
 composition == duties.
    1.  The designated entity shall be administered by a board
 of directors.
    2.  A single industry shall not be disproportionately
 represented as voting  members of the board.  The board shall
 include at least one member who is a consumer of health
 services and a majority of the voting members of the board
 shall be representative of participants in the Iowa health
 information network. The director of public health or the
 director's  designee and the director of the Iowa Medicaid
 enterprise or the director's designee shall act as voting
 members of the board. The commissioner of insurance shall act
 as an ex officio, nonvoting member of the board. Individuals
 serving in an ex officio, nonvoting capacity shall not be
 included in the total number of individuals authorized as
 members of the board.
    3.  The board of directors shall do all of the following:
    a.  Ensure that the designated entity enters into contracts
 with each state agency necessary for state reporting
 requirements.
    b.  Develop, implement, and enforce the following:
    (1)  A single patient identifier or alternative mechanism to
 share secure patient information that is utilized by all health
 care professionals.
    (2)  Standards, requirements, policies, and procedures for
 access to, use, secondary use, privacy, and security of health
 information exchanged through the Iowa health information
 network, consistent with applicable federal and state standards
 and laws.
    c.  Direct a public and private collaborative effort to
 promote the adoption and use of health information technology
 in the state to improve health care quality, increase patient
 safety, reduce health care costs, enhance public health,
 and empower individuals and health care professionals with
 comprehensive, real=time medical information to provide
 continuity of care and make the best health care decisions.
    d.  Educate the public and the health care sector about
 the value of health information technology in improving
 patient care, and methods to promote increased support and
 collaboration of state and local public health agencies,
 health care professionals, and consumers in health information
 technology initiatives.
    e.  Work to align interstate and intrastate interoperability
 standards in accordance with national health information
 exchange standards.
    f.  Provide an annual budget and fiscal report for the Iowa
 health information network to the governor, the department
 of public health, the department of management, the chairs
 and ranking members of the legislative government oversight
 standing committees, and the legislative services agency.
 The report shall also include information about the services
 provided through the network and information on the participant
 usage of the network.
    Sec. 7.  NEW SECTION.  135D.7  Legal and policy == liability
 == confidentiality.
    1.  The board shall implement industry=accepted security
 standards, policies, and procedures to protect the transmission
 and receipt of protected health information exchanged through
 the Iowa health information network, which shall, at a minimum,
 comply with HIPAA and shall include all of the following:
    a.  A secure and traceable electronic audit system to
 document and monitor the sender and recipient of health
 information exchanged through the Iowa health information
 network.
    b.  A required standard participation agreement which
 defines the minimum privacy and security obligations of all
 participants using the Iowa health information network and
 services available through the Iowa health information network.
    c.  The opportunity for a patient to decline exchange of the
 patient's health information through the record locator service
 of the Iowa health information network.
    (1)  A patient shall not be denied care or treatment for
 declining to exchange the patient's health information, in
 whole or in part, through the network.
    (2)  The board shall provide the means and process by which
 a patient may decline participation. The means and process
 utilized shall minimize the burden on patients and health care
 professionals.
    (3)  Unless otherwise authorized by law or rule, a patient's
 decision to decline participation means that none of the
 patient's health information shall be accessible through the
 record locator service function of the Iowa health information
 network. A patient's decision to decline having health
 information shared through the record locator service function
 shall not limit a health care professional with whom the
 patient has or is considering a treatment relationship from
 sharing health information concerning the patient through
 the secure messaging function of the Iowa health information
 network.
    (4)  A patient who declines participation in the Iowa health
 information network may later decide to have health information
 shared through the network. A patient who is participating in
 the network may later decline participation in the network.
    2.  A participant shall not be compelled by subpoena, court
 order, or other process of law to access health information
 through the Iowa health information network in order to gather
 records or information not created by the participant.
    3.  A participant exchanging health information and data
 through the Iowa health information network shall grant to
 other participants of the network a nonexclusive license to
 retrieve and use that information in accordance with applicable
 state and federal laws, and the policies and standards
 established by the board.
    4.  A health care professional who relies reasonably and
 in good faith upon any health information provided through
 the Iowa health information network in treatment of a patient
 who is the subject of the health information shall be immune
 from criminal or civil liability arising from the damages
 caused by such reasonable, good=faith reliance. Such immunity
 shall not apply to acts or omissions constituting negligence,
 recklessness, or intentional misconduct.
    5.  A participant who has disclosed health information
 through the Iowa health information network in compliance with
 applicable law and the standards, requirements, policies,
 procedures, and agreements of the network shall not be subject
 to criminal or civil liability for the use or disclosure of the
 health information by another participant.
    6.  The following records shall be confidential records
 pursuant to chapter 22, unless otherwise ordered by a court or
 consented to by the patient or by a person duly authorized to
 release such information:
    a.  The health information contained in, stored in, submitted
 to, transferred or exchanged by, or released from the Iowa
 health information network.
    b.  Any health information in the possession of the board due
 to its administration of the Iowa health information network.
    7.  Unless otherwise provided in this chapter, when sharing
 health information through the Iowa health information network
 or a private health information network maintained in this
 state that complies with the privacy and security requirements
 of this chapter for the purposes of patient treatment, payment
 or health care operations, as such terms are defined in
 HIPAA, or for the purposes of public health activities or
 care coordination, a participant authorized by the designated
 entity to use the record locator service is exempt from any
 other state law that is more restrictive than HIPAA that would
 otherwise prevent or hinder the exchange of patient information
 by the participant.
    8.  A patient aggrieved or adversely affected by the
 designated entity's failure to comply with subsection 1,
 paragraph "c", may bring a civil action for equitable relief as
 the court deems appropriate.
    Sec. 8.  REPEAL.  Sections 135.154, 135.155, 135.155A,
 135.156, 135.156A, 135.156B, 135.156C, 135.156D, 135.156E,
 and 135.156F, are repealed upon the assumption of the
 administration and governance, including but not limited to the
 assumption of the assets and liabilities, of the Iowa health
 information network by the designated entity.  The department
 of public health shall notify the Code editor of the date of
 such assumption by the designated entity.
    Sec. 9.  EFFECTIVE DATES.  This division of this Act
 takes effect upon the assumption of the administration and
 governance, including but not limited to the assumption of the
 assets and liabilities, of the Iowa health information network
 by the designated entity. The department of public health
 shall notify the Code editor of the date of such assumption by
 the designated entity.
                           DIVISION II
                 SELECTION OF DESIGNATED ENTITY
                    AND TRANSITION PROVISIONS
    Sec. 10.  Section 135.154, Code 2015, is amended by adding
 the following new subsections:
    NEW SUBSECTION.  3A.  "Care coordination" means the
 management of all aspects of a patient's care to improve health
 care quality.
    NEW SUBSECTION.  19A.  "Public health activities" means
 actions taken by a participant in its capacity as a public
 health authority under the Health Insurance Portability and
 Accountability Act or as required or permitted by other federal
 or state law.
    NEW SUBSECTION.  23.  "Record locator service" means the
 functionality of the Iowa health information network that
 queries data sources to locate and identify potential patient
 records.
    Sec. 11.  Section 135.155, subsection 2, Code 2015, is
 amended by adding the following new paragraph:
    NEW PARAGRAPH.  f.  Preserve the choice of the patient to
 have the patient's health information available through the
 record locator service.
    Sec. 12.  Section 135.156E, subsections 2 and 13, Code 2015,
 are amended to read as follows:
    2.  A patient shall have the opportunity to decline exchange
 of the patient's health information through the record locator
 service of the Iowa health information network. A patient
 shall not be denied care or treatment for declining to exchange
 the patient's health information, in whole or in part, through
 the record locator service of the Iowa health information
 network. The board shall provide by rule the means and process
 by which patients may decline participation. The means and
 process utilized under the rules shall minimize the burden on
 patients and health care professionals.
    13.  Unless otherwise provided in this division, when
 using sharing health information through the Iowa health
 information network or a private health information network
 maintained in this state that complies with the privacy and
 security requirements of this chapter for the purposes of
 patient treatment, payment, or health care operations, as
 such terms are defined in the Health Insurance Portability
 and Accountability Act, or for the purposes of public health
 activities or care coordination, a health care professional
 or a hospital participant authorized to use the record
 locator service is exempt from any other state law that is
 more restrictive than the Health Insurance Portability and
 Accountability Act that would otherwise prevent or hinder the
 exchange of patient information by the patient's health care
 professional or hospital such participant.
    Sec. 13.  SELECTION OF A DESIGNATED ENTITY.  The department
 of public health shall utilize a competitive process to select
 a designated entity to administer and govern the Iowa health
 information network.
    Sec. 14.  CONTINUATION OF PARTICIPATION AGREEMENTS.  If
 the department of public health selects a designated entity
 pursuant to this division of this Act, the designated entity
 shall continue any agreement between an authorized participant
 and the Iowa health information network existing upon the
 transition of the assumption of the administration and
 governance, including but not limited to the assumption of
 the assets and liabilities  of the Iowa health information
 network by the designated entity, under the same terms through
 completion of the original agreement period.
    Sec. 15.  IOWA HEALTH INFORMATION NETWORK FUND.  If the
 department of public health selects a designated entity
 pursuant to this division of this Act, any moneys remaining
 in the Iowa health information network fund established
 pursuant to section 135.156C, Code 2015, that are obligated or
 encumbered for expenses related to the Iowa health information
 network prior to the assumption of the administration and
 governance, including but not limited to the assumption of the
 assets and liabilities,  of the Iowa health information network
 by the designated entity, shall be retained by the department.
 The remainder of the moneys in the fund shall be transferred to
 the designated entity upon the assumption of the administration
 and governance of the Iowa health information network.
    Sec. 16.  TRANSFER OF ASSETS AND LIABILITIES AND
 ADMINISTRATIVE RESPONSIBILITIES TO THE DESIGNATED ENTITY.  If
 the department of public health selects a designated entity
 pursuant to this division of this Act, the department shall
 continue to provide administrative support to the Iowa health
 information network as provided in section 135.156, Code
 2015, until such time as the designated entity assumes such
 responsibilities.  Upon selection of the designated entity, the
 assets and liabilities of the Iowa health information network
 shall be transferred to the designated entity.
    Sec. 17.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.


                                                             
                               KRAIG PAULSEN
                               Speaker of the House


                                                             
                               PAM JOCHUM
                               President of the Senate
    I hereby certify that this bill originated in the House and
 is known as House File 381, Eighty=sixth General Assembly.


                                                             
                               CARMINE BOAL
                               Chief Clerk of the House
 Approved                , 2015


                                                             
                               TERRY E. BRANSTAD
                               Governor

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