SB 135-MENTAL HEALTH INFO/RECORDS/COMMUNICATIONS [The tape counter numbers indicate the number of minutes that have elapsed.] CHAIR KOTT announced that the first order of business would be CS FOR SENATE BILL NO. 135(JUD), "An Act relating to mental health records, communications, and information; and providing for an effective date." 00.7 REPRESENTATIVE HUGH FATE, Alaska State Legislature, presented SB 135. He explained that SB 135 would do the following two things. The bill would require agencies to report the exact consumer data as recommended by the state auditor. The bill would hold harmless agencies for breech of confidentiality in reporting that data which settled a pending lawsuit. Representative Fate emphasized that this [legislation] will settle a pending lawsuit by community agencies. He explained that the state maintains all records in a confidential manner using sophisticated encryption methods. Representative Fate specified that this is really about accountability for state grant funds. The auditor was unable to track grant funds under the current system. Therefore, this [legislation] is the fix. In response to Chair Kott, Representative Fate stated that CSSB 135(JUD) is the companion to HB 174. REPRESENTATIVE McGUIRE asked whether there is any other way to disclose the confidential mental health information of a patient. 02.3 ELMER LINDSTROM, Special Assistant, Office of the Commissioner, Department of Health & Social Services (DHSS), explained that the community mental health centers are funded in two ways by DHSS. The community mental health centers are funded through Medicaid and the grant aid program. He pointed out that all the information being sought for the grant funds through this bill are already provided through the Medicaid management information system. Therefore, the legislative auditor noted that although that information is available through the Medicaid program, there is no way to determine who is receiving services and what type of services from the grant program. As the Medicaid budget grew, there was some concern from those requesting the audit that there should be knowledge regarding how these grant funds are being spent, particularly in relation to the services being provided by Medicaid. MR. LINDSTROM highlighted that DHSS deals with confidential records in every aspect of its business. In the ten years that he has worked with DHSS he was unaware of any circumstance in which the department has inappropriately divulged that information. He noted that the information does have to be client-specific information, which is aggregated. Although this is a necessary fix to a specific statute, it isn't extraordinary in regard to the way [DHSS] does business elsewhere. 04.1 REPRESENTATIVE McGUIRE referred to Section 1 of CSSB 135(JUD) which says "when disclosure is authorized under AS 47.30.540, 47.30.590, 47.30.845, 47.31.032." She asked what those statutes are. MR. LINDSTROM answered that he believes those statutes are the underlying health statutes for the community mental health grant program. He explained that the point of that provision is that providers must provide that information to the department. Therefore, the department wants the providers to have immunity for doing so. Without the clarification, the providers were concerned that they could be sued by a person in the community for providing that information. This bill makes it clear that the provider must provide that information to the department and it also makes it clear that the community mental health centers can't be sued for doing so. REPRESENTATIVE McGUIRE asked if there would be any harm in narrowing the language such that it would require that the patient must agree to the release of their records. MR. LINDSTROM deferred to Ms. Henry because he wasn't certain of the release that patient's currently sign. He explained that the clients in these cases don't have a contractual relationship with the department because it is a grant and aid process rather than (indisc.) the community mental health center. 05.5 ANNE HENRY, Special Projects Coordinator, Division of Mental Health & Developmental Disabilities, Department of Health & Social Services, informed the committee that the person's name and social security number are not required. Rather, there is a unique identifier that includes initials, date of birth, and the last for digits of the person's social security number. Currently, there is no release required for this information because it is encrypted. Ms. Henry also informed the committee that due to the federal regulations that will be coming on line, all individuals that use any type of health care will be using a unique identifier in the next two or three years. 06.5 REPRESENTATIVE PORTER moved to report CSSB 135(JUD) out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSSB 135(JUD) was reported from the House Rules Standing Committee.