such penalty would be excessive relative to the compliance failure involved. WRONGFUL DISCLOSURE OF INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION SEC. 1177. [42 U.S.C. 1320d-6] (a) OFFENSE.-A person who knowingly and in violation of this part (1) uses or causes to be used a unique health identifier; (2) obtains individually identifiable health information relating to an individual; or (3) discloses individually identifiable health information to another person, shall be punished as provided in subsection (b). (b) PENALTIES.-A person described in subsection (a) shall— (1) be fined not more than $50,000, imprisoned not more than 1 year, or both; (2) if the offense is committed under false pretenses, be fined not more than $100,000, imprisoned not more than 5 years, or both; and (3) if the offense is committed with intent to sell, transfer, or use individually identifiable health information for commercial advantage, personal gain, or malicious harm, be fined not more than $250,000, imprisoned not more than 10 years, or both. EFFECT ON STATE LAW SEC. 1178. [42 U.S.C. 1320d-7] (a) GENERAL EFFECT. (1) GENERAL RULE.-Except as provided in paragraph (2), a provision or requirement under this part, or a standard or implementation specification adopted or established under sections 1172 through 1174, shall supersede any contrary provision of State law, including a provision of State law that requires medical or health plan records (including billing information) to be maintained or transmitted in written rather than electronic form. (2) EXCEPTIONS.-A provision or requirement under this part, or a standard or implementation specification adopted or established under sections 1172 through 1174, shall not supersede a contrary provision of State law, if the provision of State law (A) is a provision the Secretary determines (i) is necessary (I) to prevent fraud and abuse; (II) to ensure appropriate State regulation of insurance and health plans; (III) for State reporting on health care delivery or costs; or (IV) for other purposes; or (ii) addresses controlled substances; or (B) subject to section 264(c)(2) of the Health Insurance Portability and Accountability Act of 1996, relates to the privacy of individually identifiable health information. (b) PUBLIC HEALTH.-Nothing in this part shall be construed to invalidate or limit the authority, power, or procedures established under any law providing for the reporting of disease or injury, child abuse, birth, or death, public health surveillance, or public health investigation or intervention. (c) STATE REGULATORY REPORTING.-Nothing in this part shall limit the ability of a State to require a health plan to report, or to provide access to, information for management audits, financial audits, program monitoring and evaluation, facility licensure or certification, or individual licensure or certification. PROCESSING PAYMENT TRANSACTIONS BY FINANCIAL INSTITUTIONS SEC. 1179. [42 U.S.C. 1320d-8] To the extent that an entity is engaged in activities of a financial institution (as defined in section 1101 of the Right to Financial Privacy Act of 1978), or is engaged in authorizing, processing, clearing, settling, billing, transferring, reconciling, or collecting payments, for a financial institution, this part, and any standard adopted under this part, shall not apply to the entity with respect to such activities, including the following: (1) The use or disclosure of information by the entity for authorizing, processing, clearing, settling, billing, transferring, reconciling or collecting, a payment for, or related to, health plan premiums or health care, where such payment is made by any means, including a credit, debit, or other payment card, an account, check, or electronic funds transfer. (2) The request for, or the use of disclosure of, information by the entity with respect to a payment described in paragraph (1)— (A) for transferring receivables; (B) for auditing, (C) in connection with (i) a customer dispute; or (ii) an inquiry from, or to, a customer; (D) in a communication to a customer of the entity regarding the customer's transactions, payment card, account, check, or electronic funds transfer; (E) for reporting to consumer reporting agencies; or (i) a civil or criminal subpoena; or (ii) a Federal or State law regulating the entity. TITLE XII-ADVANCES TO STATE TABLE OF CONTENTS OF TITLE 2 Page Sec. 1201. Advances to State unemployment funds 679 Repayment by States of advances to State unemployment funds 680 683 Sec. 1204. 684 Definition of Governor ADVANCES TO STATE UNEMPLOYMENT FUNDS 3 SEC. 1201. [42 U.S.C. 1321] (a)(1) Advances shall be made to the States from the Federal unemployment account in the Unemployment Trust Fund as provided in this section, and shall be repayable, with interest to the extent provided in section 1202(b), in the manner provided in sections 901(d)(1), 903(b)(2), and 1202. An advance to a State for the payment of compensation in any 3-month period may be made if (A) the Governor of the State applies therefor no earlier than the first day of the month preceding the first month of such 3month period, and (B) he furnishes to the Secretary of Labor his estimate of the amount of an advance which will be required by the State for the payment of compensation in each month of such 3-month period. (2) In the case of any application for an advance under this section to any State for any 3-month period, the Secretary of Labor shall (A) determine the amount (if any) which he finds will be required by such State for the payment of compensation in each month of such 3-month period, and (B) certify to the Secretary of the Treasury the amount (not greater than the amount estimated by the Governor of the State) determined under subparagraph (A). The aggregate of the amounts certified by the Secretary of Labor with respect to any 3-month period shall not exceed the amount which the Secretary of the Treasury reports to the Secretary of 42. 1Title XII of the Social Security Act is administered by the Department of Labor. Title XII appears in the United States Code as §§1321-1324, subchapter XII, chapter 7, Title Regulations of the Secretary of Labor relating to Title XII are contained in chapter V, Title 20, Code of Federal Regulations. cy. 2 This table of contents does not appear in the law. 3 See P.L. 83-591, §3302(c)3)this volume), with respect to advances to a State or State agen See Vol. II, P.L. 95–521, §102(i), with respect to reporting of benefits received under the Social Security Act. See Vol. II, P.L. 96-499, §1025, with respect to withholding certification of State unemployment laws. Labor is available in the Federal unemployment account for advances with respect to each month of such 3-month period. (3) For purposes of this subsection (A) an application for an advance shall be made on such forms, and shall contain such information and data (fiscal and otherwise) concerning the operation and administration of the State unemployment compensation law, as the Secretary of Labor deems necessary or relevant to the performance of his duties under this title, (B) the amount required by any State for the payment of compensation in any month shall be determined with due allowance for contingencies and taking into account all other amounts that will be available in the State's unemployment fund for the payment of compensation in such month, and (C) the term "compensation" means cash benefits payable to individuals with respect to their unemployment, exclusive of expenses of administration. (b) The Secretary of the Treasury shall, prior to audit or settlement by the General Accounting Office, transfer in monthly installments from the Federal unemployment_account to the account of the State in the Unemployment Trust Fund the amount certified under subsection (a) by the Secretary of Labor (but not exceeding that portion of the balance in the Federal unemployment account at the time of the transfer which is not restricted as to use pursuant to section 903(b)(1)). The amount of any monthly installment so transferred shall not exceed the amount estimated by the State to be required for the payment of compensation for the month with respect to which such installment is made. REPAYMENT BY STATES OF ADVANCES TO STATE UNEMPLOYMENT FUNDS SEC. 1202. [42 U.S.C. 1322] (a) The Governor of any State may at any time request that funds be transferred from the account of such State to the Federal unemployment account in repayment of part or all of that balance of advances, made to such State under section 1201, specified in the request. The Secretary of Labor shall certify to the Secretary of the Treasury the amount and balance specified in the request; and the Secretary of the Treasury shall promptly transfer such amount in reduction of such balance. (b)(1) Except as otherwise provided in this subsection, each State shall pay interest on any advance made to such State under section 1201. Interest so payable with respect to periods during any calendar year shall be at the rate determined under paragraph (4) for such calendar year. (2) No interest shall be required to be paid under paragraph (1) with respect to any advance or advances made during any calendar year if (A) such advances are repaid in full before the close of September 30 of the calendar year in which the advances were made, (B) no other advance was made to such State under section 1201 during such calendar year and after the date on which the repayment of the advances was completed, and (C) such State meets funding goals, established under regulations issued by the Secretary of Labor, relating to the accounts of the States in the Unemployment Trust Fund. |