I
105TH CONGRESS
1ST SESSION
H. R. 2105
To amend section 552a of title 5, United States Code, to provide for the
maintenance of certain health information in cases where a health care
facility has closed or a health benefit plan sponsor has ceased to do
business.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 1997
Mr. TOWNS introduced the following bill; which was referred to the Committee
on Government Reform and Oversight
A BILL
To amend section 552a of title 5, United States Code, to
provide for the maintenance of certain health information
in cases where a health care facility has closed or a
health benefit plan sponsor has ceased to do business.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 
1. 
MAINTENANCE 
OF 
CERTAIN 
PROTECTED
HEALTH INFORMATION.
Section 552a of title 5, United States Code, is
amended by adding at the end the following:
‘‘(w) MAINTENANCE OF CERTAIN HEALTH INFORMA-
TION UPON CESSATION OF CERTAIN BUSINESSES.—
‘‘(1) IN
GENERAL.—Not later than 2 years
after the date of the enactment of this section, a
State shall establish a process under which the pro-
tected health information described in paragraph (2)
that is maintained by a person described in para-
graph (3) is delivered to, and maintained by, the
State or an individual or entity designated by the
State.
‘‘(2) INFORMATION DESCRIBED.—The protected
health information referred to in paragraph (1) is
protected health information that—
‘‘(A) is recorded in any form or medium;
‘‘(B) is created by—
‘‘(i) a health care provider; or
‘‘(ii) a health benefit plan sponsor
that provides benefits in the form of items
and services to enrollees and not in the
form of reimbursement for items and serv-
ices; and
‘‘(C) relates in any way to the past,
present, or future physical or mental health or
condition or functional status of a protected in-
dividual or the provision of health care to a pro-
tected individual.
‘‘(3) PERSONS DESCRIBED.—A person referred
to in paragraph (1) is any of the following:
‘‘(A) A health care facility previously lo-
cated in the State that has closed.
‘‘(B) A professional practice previously op-
erated by a health care provider in the State
that has closed.
‘‘(C) A health benefit plan sponsor that—
‘‘(i) previously provided benefits in the
form of items and services to enrollees in
the State; and
‘‘(ii) has ceased to do business.
‘‘(4) INELIGIBILITY OF NONCOMPLYING STATES
FOR CONTRACTOR STATUS FOR PURPOSES OF FED-
ERAL CIVILIAN PROCUREMENT.—A State that fails
to comply with paragraph (1) may not be considered
to be a responsible source (as such term is defined
in section 4 of the Office of Federal Procurement
Policy Act) for purposes of any contract to which
the Federal Property and Administrative Services
Act of 1949 applies. For purposes of the preceding
sentence, the Secretary of Health and Human Serv-
ices shall make timely recommendations to each ex-
ecutive agency (as such term is defined in section 3
of the Federal Property and Administrative Services
Act of 1949) concerning whether States are comply-
ing with paragraph (1).
‘‘(5) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) HEALTH BENEFIT PLAN.—The term
‘health benefit plan’ means—
‘‘(i) any contract of health insurance,
including any hospital or medical service
policy or certificate, hospital or medical
service plan contract, or health mainte-
nance organization group contract, that is
provided by a carrier; and
‘‘(ii) an employee welfare benefit plan
or other arrangement insofar as the plan
or arrangement provides health benefits
and is funded in a manner other than
through the purchase of one or more poli-
cies or contracts described in clause (i).
‘‘(B) HEALTH BENEFIT PLAN SPONSOR.—
The term ‘health benefit plan sponsor’ means a
person who, with respect to a specific item of
protected health information, receives or creates
the information while acting in whole or in part
in the capacity of—
‘‘(i) an insurance carrier or other per-
son providing a health benefit plan, includ-
ing any public entity that provides pay-
ments for health care items and services
under a health benefit plan that are equiv-
alent to payments provided by a private
person under such a plan; or
‘‘(ii) an officer or employee of a per-
son described in clause (i).
‘‘(C) HEALTH
CARE.—The term ‘health
care’—
‘‘(i) means—
‘‘(I) any preventive, diagnostic,
therapeutic, 
rehabilitative, 
mainte-
nance, or palliative care, counseling,
service, or procedure—
‘‘(aa) with respect to the
physical or mental condition, or
functional status, of an individ-
ual; or
‘‘(bb) affecting the structure
or function of the human body or
any part of the human body, in-
cluding banking of blood, sperm,
organs, or any other tissue; or
‘‘(cc) any sale or dispensing
of a drug, device, equipment, or
other item to an individual, or for
the use of an individual, pursu-
ant to a prescription; but
‘‘(ii) does not include any item or
service that is not furnished for the pur-
pose of maintaining or improving the
health of an individual.
‘‘(D) HEALTH CARE PROVIDER.—The term
‘health care provider’ means a person who, with
respect to a specific item of protected health in-
formation, receives or creates the information
while acting in whole or in part in the capacity
of—
‘‘(i) a person who is licensed, certified,
registered, or otherwise authorized by law
to provide an item or service that con-
stitutes health care in the ordinary course
of business or practice of a profession;
‘‘(ii) a Federal or State program that
directly provides items or services that con-
stitute health care to beneficiaries; or
‘‘(iii) an officer or employee of a per-
son described in clause (i) or (ii).