75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
SA to A-Eng. HB 2604
LC 1094/HB 2604-A5
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2604
By COMMITTEE ON JUDICIARY
June 9
On page 2 of the printed A-engrossed bill, after line 44,
insert:
' (9) A covered entity is in compliance with subsection (2) of
this section if the covered entity is in compliance with the
reporting and record-keeping requirements, adopted by the United
States Secretary of Health and Human Services pursuant to 42
U.S.C. 1320d-2, that are in effect on the effective date of this
2009 Act.'.
On page 3, after line 25, insert:
' (4) A health care facility is in compliance with subsection
(1) of this section if the facility is in compliance with the
reporting and record-keeping requirements, adopted by the United
States Secretary of Health and Human Services pursuant to 42
U.S.C. 1320d-2, that are in effect on the effective date of this
2009 Act.'.
Delete lines 38 through 45.
On page 4, delete lines 1 through 5 and insert:
' { + SECTION 6. + } ORS 731.574, as amended by section 2 of
this 2009 Act, is amended to read:
' 731.574. (1) Except as provided in subsection { - (5) - }
{ + (4) + } of this section, every authorized insurer shall
file with the Director of the Department of Consumer and Business
Services, on or before March 1 of each year, a financial
statement for the year ending December 31 immediately preceding.
This statement shall be on a form prescribed by the director. The
statement shall contain such detailed exhibit of the condition
and transactions of the insurer, in such form and otherwise, as
the director prescribes. The director shall consider and may
prescribe the annual statement blank or other form established by
the National Association of Insurance Commissioners, including
instructions prepared by the National Association of Insurance
Commissioners for completing the blank or other form. If the
director prescribes the blank or other form established by the
National Association of Insurance Commissioners, including the
instructions, an insurer submitting the annual statement blank or
form established by the National Association of Insurance
Commissioners must complete the blank or form according to the
instructions. The director may require the filing of information
in addition to the information required in the annual statement.
The director may also require additional filings as the director
determines necessary.
' { - (2) A covered entity, as defined in ORS 192.519, that is
required to file an annual financial statement under subsection
(1) of this section shall file with the statement a protection of
health information report. The report must: - }
' { - (a) State the responsibility of management for
establishing and maintaining adequate safeguards and procedures
for protecting the confidentiality of individually identifiable
health information that the covered entity retains in electronic
and hard copy form; - }
' { - (b) Contain an assessment, as of December 31 of the
preceding year, of the effectiveness of the safeguards and
procedures in protecting the confidentiality of individually
identifiable health information; - }
' { - (c) Contain assurances that the signing officers have
disclosed to auditors and the governing board of the covered
entity: - }
' { - (A) All significant deficiencies in the design or
operation of record-keeping systems or controls that could
adversely affect the covered entity's ability to protect the
confidentiality of individually identifiable health
information; - }
' { - (B) Any breaches of the security of individually
identifiable health information, whether material or not, that
involve management or other employees who have a significant role
in the covered entity's record-keeping systems or controls;
and - }
' { - (C) All necessary steps that have been taken to address
deficiencies in the design or operation of record-keeping systems
or controls and to resolve any material weaknesses identified to
or by the covered entity's auditors; and - }
' { - (d) Contain assurances that the signing officers have
identified for auditors any material weaknesses in the
record-keeping systems or controls. - }
' { - (3) - } { + (2) + } The financial statement filed by
an insurer under subsection (1) of this section { - and the
report filed under subsection (2) of this section - } shall be
verified by the oaths of the president and secretary of the
insurer or, in their absence, by two other principal officers.
The statement of an alien company shall embrace only its
condition and transactions in the United States, unless the
director requires otherwise, and shall be verified by the oath of
its resident manager or principal representatives in the United
States. Facsimile signatures are acceptable and shall have the
same force as original signatures.
' { - (4) - } { + (3) + } The director may grant an
extension of time for filing the annual statement.
' { - (5) - } { + (4) + } A home protection insurer may
adopt a fiscal year other than the calendar year for its
financial statements filed with the director under subsection (1)
of this section by declaring the fiscal year in its application
for a certificate of authority. An adopted fiscal year may not be
changed without the consent of the insurance supervisory official
of the insurer's domicile. The financial statement of a home
protection insurer on other than the calendar year basis shall be
filed with the director on or before the first day of the third
month which follows the end of the fiscal year.
' { - (6) - } { + (5) + } An insurer, subject to
requirements set forth in rules made by the director, may publish
financial statements, or information based on financial
statements, prepared on a basis that is in accordance with
requirements of a competent authority and differs from the basis
of the statements required to be filed with the director.
' { - (7) - } { + (6) + } It is the intention of the
Legislative Assembly that the director consider and follow the
accounting, reporting and other standards, practices and
procedures established by the National Association of Insurance
Commissioners in order to:
' (a) Strengthen and improve regulation of insurer solvency by
the Department of Consumer and Business Services;
' (b) Promote uniform and consistent regulation of insurance by
this state and the other states;
' (c) Reduce regulatory costs owing to unnecessary differences
in the laws of the various states; and
' (d) Obtain and maintain accreditation of this state's
insurance regulatory program by the National Association of
Insurance Commissioners.
' { - (8) As used in this section, 'individually identifiable
health information' has the meaning given that term in ORS
192.519. - }
' { - (9) A covered entity is in compliance with subsection
(2) of this section if the covered entity is in compliance with
the reporting and record-keeping requirements, adopted by the
United States Secretary of Health and Human Services pursuant to
42 U.S.C. 1320d-2, that are in effect on the effective date of
this 2009 Act. - }
' { + SECTION 7. + } ORS 442.445, as amended by section 5 of
this 2009 Act, is amended to read:
' 442.445. (1) Any health care facility that fails to perform
as required in ORS 442.205 and 442.400 to 442.463 or section 3,
chapter 838, Oregon Laws 2007, { - or section 4 of this 2009
Act - } and rules of the Office for Oregon Health Policy and
Research may be subject to a civil penalty.
' (2) The Administrator of the Office for Oregon Health Policy
and Research shall adopt a schedule of penalties not to exceed
$500 per day of violation, determined by the severity of the
violation.
' (3) Civil penalties under this section shall be imposed as
provided in ORS 183.745.
' (4) Civil penalties imposed under this section may be
remitted or mitigated upon such terms and conditions as the
administrator considers proper and consistent with the public
health and safety.
' (5) Civil penalties incurred under any law of this state are
not allowable as costs for the purpose of rate determination or
for reimbursement by a third-party payer.
' { + SECTION 8. + } { + Section 4 of this 2009 Act is
repealed on January 2, 2014. + }
' { + SECTION 9. + } { + The amendments to ORS 442.445 and
731.574 by sections 6 and 7 of this 2009 Act become operative on
January 2, 2014. + } ' .
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