Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 351

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Health, to which was referred H.B. No. 351


begs leave to report as follows:

     The purpose of this bill is to assure the privacy of
individuals' health information without compromising the delivery
of high quality health care by:

     (1)  Stipulating conditions under which health information
          can be disclosed; and

     (2)  Establishing remedies for violations of the improper
          disclosure of and unauthorized and inappropriate use of
          protected health information.

     Testimony in support of the measure was submitted by the
Department of Commerce and Consumer Affairs' Regulated Industries
Complaints Office, the Department of Health, the Hawaii Medical
Service Association, the Hawaii Medical Association, the Hawaii
Chapter of the American Academy of Pediatrics, Queen's Health
Management and Queen's Health Plans, the AARP State Legislative
Committee, the Hawaii Coalition for Health, the Hawaii Federation
of Physicians and Dentists, Kaiser Permanente, and the Schering-
Plough Corporation.  The State Insurance Commissioner submitted
testimony indicating its support for the measure so long as the

                                 STAND. COM. REP. NO. 37
                                 Page 2

Insurance Division's regulatory role over insurers on other
matters is retained.

     The League of Women Voters of Hawaii and several individuals
submitted testimony in opposition to the measure.  The Office of
Information Practices submitted comments on the measure.

     Your Committee believes that the complexity of this health
care privacy issue merits further legislative deliberation.  It
is the intent of your Committee to facilitate further discussion
on this issue in the Committee on Consumer Protection and
Commerce and the Committee on Judiciary and Hawaiian Affairs,
particularly with regard to the balance between patients' privacy
interests and the need for information to provide quality health

     As affirmed by the record of votes of the members of your
Committee on Health that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
351 and recommends that it pass Second Reading and be referred to
the Committee on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health,

                                   ALEXANDER C. SANTIAGO, Chair