Health Care Information 

Allows Office of Information Practices to bring action for
injunctive relief for violation of law; establishes contested
case hearing procedures for cease and desist orders; repeals
court-issued cease and desist orders.

THE SENATE                              S.B. NO.           2375
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Chapter 323C, Hawaii Revised Statutes, is
 2 amended by adding a new section to part V to be appropriately
 3 designated and to read as follows:
 4      "323C-    Injunctive relief.  In addition to section
 5 323C-52, if the director of the office of information practices
 6 has reason to believe that a person has engaged in, is engaging
 7 in, or is about to engage in an activity that subjects the person
 8 to possible penalty under section 323C-52(b)(3) or (4), or both,
 9 the director may bring an action in an appropriate circuit court
10 to enjoin:
11      (1)  The activity; or
12      (2)  The person from concealing, removing, encumbering, or
13           disposing of assets that may be required to pay the
14           possible penalty; or
15 may seek other appropriate relief."
16      SECTION 2.  Section 323C-52, Hawaii Revised Statutes, is
17 amended by amending subsection (b) to read as follows:
18      "(b)  In any civil action brought under this section, if the
19 court finds a violation of an individual's rights under this

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 1 chapter, the court may award:
 2      (1)  Injunctive relief, including enjoining a person or
 3           entity from engaging in a practice that violates this
 4           chapter;
 5      (2)  Equitable relief;
 6      (3)  Compensatory damages for injuries suffered by the
 7           individual[.  Injuries compensable under this section
 8           may include], including but [are] not limited to,
 9           personal injury including emotional distress,
10           reputational injury, injury to property, and
11           consequential damages;
12      (4)  Punitive damages, as appropriate;
13      (5)  Costs of the action;
14      (6)  Attorneys' fees, as appropriate; and
15      (7)  Any other relief the court finds appropriate[.];
16           provided that a principal shall be liable for damages
17           under paragraphs (3) and (4) for an action of the
18           principal's agent acting within the scope of the
19           agency."
20      SECTION 3.  Section 323C-53, Hawaii Revised Statutes, is
21 amended to read as follows:
22      "[[]323C-53[]]  Cease and desist orders; civil penalty.
23 (a)  [A court shall issue and cause to be served upon a person,

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 1 who has violated any provision of this chapter, a copy of the
 2 court's findings and an order requiring the person to cease and
 3 desist from violating this chapter, or to otherwise comply with
 4 the requirements of this chapter.  The court may also order any
 5 one or more of the following:] If the director of the office of
 6 information practices has reason to believe that a person has
 7 materially and substantially violated any provision of this
 8 chapter, and believes that an administrative proceeding would be
 9 in the best interest of the public, the following procedures
10 shall apply:
11      (1)  The director shall issue and serve upon the person a
12           statement of the charge and a notice of hearing;
13      (2)  The hearing shall be held at a time and place fixed in
14           the notice, which shall not be less than fifteen days
15           after the date of service;
16      (3)  At the hearing, the person charged shall have an
17           opportunity to be heard and to show cause why an order
18           should not be made by the director requiring the person
19           to cease and desist from the act, method, or practice
20           that is the subject of the charge or to otherwise
21           comply with the requirements of this chapter;
22      (4)  The hearing shall be deemed a contested case hearing
23           under chapter 91;

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 1      (5)  All remedies, penalties, and proceedings under this
 2           section shall be applied exclusively by the director;
 3      (6)  If, after a hearing, the director determines that the
 4           person charged has violated any provision of this
 5           chapter, the director shall:
 6           (A)  Reduce the findings to writing;
 7           (B)  Issue and cause to be served upon the person:
 8                (i)  A copy of the findings; and
 9               (ii)  An order requiring the person to cease and
10                     desist from violating this chapter or to
11                     otherwise comply with this chapter;
12      (7)  No fact found or decision made in a hearing shall be
13           binding on any party in any subsequent action to
14           recover damages based upon the same or similar facts;
15           and
16      (8)  A person aggrieved by an order of the director may
17           obtain judicial review of the order in the manner
18           provided under chapter 91.
19      (b)  In addition to subsection (a)(6), the director may
20 order:
21      (1)  For any violation of part II of this chapter, payment
22           of a civil penalty of not more than $500 for each and
23           every act or violation but not to exceed $5,000 in the

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 1           aggregate for multiple violations;
 2      (2)  For [a knowing violation] any violation of part III of
 3           this chapter, payment of a civil penalty of not more
 4           than $25,000 for each and every act or violation but
 5           not to exceed $100,000 in the aggregate for multiple
 6           violations; and
 7      (3)  For violations of this chapter that have occurred with
 8           such frequency as to constitute a general business
 9           practice, a civil penalty of $100,000.
10      [(b)] (c)   Any person who violates a cease and desist order
11 or injunction issued under this section may be subject to a civil
12 penalty of not more than $10,000 for each and every act in
13 violation of the cease and desist order.
14      [(c)] (d)  No order or injunction issued under this section
15 shall in any way relieve or absolve any person affected by the
16 order from any other liability, penalty, or forfeiture required
17 by law.
18      (e)  This section shall be in addition to any other orders,
19 procedures, and penalties under this chapter.
20      [(d)] (f)  Any civil penalties collected under this section
21 shall be deposited into the general fund."
22      SECTION 4.  There is appropriated out of the general
23 revenues of the State of Hawaii the sum of $          , or so

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 1 much thereof as may be necessary for fiscal year 2000-2001, for
 2 the office of information practices to hire necessary staff to
 3 implement this Act.
 4      SECTION 5.  The sum appropriated by this Act shall be
 5 expended by the office of information practices for the purposes
 6 of this Act.
 7      SECTION 6.  Statutory material to be repealed is bracketed.
 8 New statutory material is underscored.
 9      SECTION 7.  This Act shall take effect on July 1, 2000.
11                           INTRODUCED BY:  _______________________