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Oklahoma Legislature· HB 3647Referred to Appropriations

An act relating to health information, the official text

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1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3647   By: Stinson

4

5

6                   AS INTRODUCED

7   An Act relating to health information; creating the

    Oklahoma Health Care Transparency Initiative Act of

8   2026; amending Section 1, Chapter 250, O.S.L. 2022

    (63 O.S. Supp. 2025, Section 1-132.1), which relates

9   to the Office of the State Coordinator for Health

    Information Exchange; modifying powers and duties of

10  the Office; amending 63 O.S. 2021, Section 1-133, as

    last amended by Section 1, Chapter 243, O.S.L. 2024

11  (63 O.S. Supp. 2025, Section 1-133), which relates to

    state-designated entity for health information

12  exchange; modifying time period of certain

    requirement; modifying and adding certain exemptions;

13  defining terms; creating the Oklahoma Health Care

    Transparency Initiative; providing for governance and

14  oversight of the initiative; requiring submitting

    entity to submit certain information to state-

15  designated entity; allowing voluntary submission of

    certain information by certain health benefit plan,

16  person, or entity; mandating compliance with certain

    requirements; requiring submission of public health

17  data for integration into the initiative; requiring

    assignment of unique identifier; providing for

18  confidentiality, privacy, and security of certain

    data; listing circumstances under which certain data

19  may be made available; prohibiting certain use or

    disclosure of data; providing certain construction;

20  authorizing certain penalties; limiting amount of

    penalties; providing for certain remittance or

21  mitigation of penalties; requiring the Insurance

    Department to remit certain proceeds to the Oklahoma

22  Health Care Authority; specifying allowed uses of

    certain funds; amending 51 O.S. 2021, Section 24A.3,

23  as last amended by Section 1, Chapter 404, O.S.L.

    2025 (51 O.S. Supp. 2025, Section 24A.3), which

24  relates to the Oklahoma Open Records Act; modifying

    Req. No. 14605                                         Page 1
1   certain definition; providing for codification; and

    declaring an emergency.

2

3

4

5 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

6   SECTION 1.      NEW LAW     A new section of law to be codified

7 in the Oklahoma Statutes as Section 1-134.1 of Title 63, unless

8 there is created a duplication in numbering, reads as follows:

9   Sections 4 through 7 of this act shall be known and may be cited

10 as the "Oklahoma Health Care Transparency Initiative Act of 2026".

11  SECTION 2.      AMENDATORY        Section 1, Chapter 250, O.S.L.

12 2022 (63 O.S. Supp. 2025, Section 1-132.1), is amended to read as

13 follows:

14  Section 1-132.1. A. There is hereby created the Office of the

15 State Coordinator for Health Information Exchange within the

16 Oklahoma Health Care Authority.

17  B. The Office shall have the power and duty to oversee:

18  1. Oversee the state-designated entity for health information

19 exchange, as described under Section 1-133 of Title 63 of the

20 Oklahoma Statutes this title; and

21  2. Oversee the Oklahoma Health Care Transparency Initiative.

22  C. The Office shall consist of the State Coordinator for Health

23 Information Exchange, who shall be appointed by and serve at the

24 pleasure of the Administrator of the Authority, and such other

    Req. No. 14605                                                 Page 2
1 employees of the Authority as the Administrator may assign to the

2 Office.

3   SECTION 3.      AMENDATORY  63 O.S. 2021, Section 1-133, as

4 last amended by Section 1, Chapter 243, O.S.L. 2024 (63 O.S. Supp.

5 2025, Section 1-133), is amended to read as follows:

6   Section 1-133. A. As used in this section:

7   1. "Health information exchange" means the electronic movement

8 of health-related information among organizations according to

9 nationally recognized standards for purposes including, but not

10 limited to, payment, treatment, and administration; and

11  2. "Health information exchange organization" means an entity

12 whose primary business activity is health information exchange and

13 which is governed by its stakeholders.

14  B. The State of Oklahoma:

15  1. Shall designate a health information exchange organization

16 as the state-designated entity for health information exchange;

17  2. Shall establish a transition plan to ensure continued

18 operation of the health information exchange; and

19  3. May temporarily serve as the state-designated entity as part

20 of the transition plan described in paragraph 2 of this subsection.

21  C. Beginning July 1, 2023, all 1. All health care providers as

22 defined by the rules promulgated by the Oklahoma Health Care

23 Authority Board and who are licensed by and located in this state

24 may report data to and utilize the state-designated entity. The

    Req. No. 14605                                                  Page 3
1 Office of the State Coordinator for Health Information Exchange

2 shall begin implementation of this requirement on or before July 1,

3 2026.

4   2. The Office of the State Coordinator for Health Information

5 Exchange may, as provided by rules promulgated by the Board, allow

6 exemptions from the requirement provided by paragraph 1 of this

7 subsection on the basis of:

8        a. financial hardship,

9        b. size of the practice, or

10       c. technological capability of a,

11       d. type of health care provider, or

12       e. such other bases basis as may be provided by rules

13       promulgated by the Board.

14  D. 1. A person who participates in the services or information

15 provided by the state-designated entity shall not be liable in any

16 action for damages or costs of any nature that result solely from

17 the person's use or failure to use information or data from the

18 state-designated entity that was entered or retrieved under relevant

19 state or federal privacy laws, rules, regulations, or policies

20 including, but not limited to, the Health Insurance Portability and

21 Accountability Act of 1996.

22  2. A person shall not be subject to antitrust or unfair

23 competition liability based on participation with the state-

24 designated entity as long as the participation provides an essential

    Req. No. 14605                                                  Page 4
1 governmental function for the public health and safety and enjoys

2 state action immunity.

3   E. A person who provides information and data to the state-

4 designated entity retains a property right in the information or

5 data, but grants to the other participants or subscribers a

6 nonexclusive license to retrieve and use that information or data

7 under relevant state or federal privacy laws, rules, regulations, or

8 policies including, but not limited to, the Health Insurance

9 Portability and Accountability Act of 1996.

10  F. Patient-specific protected health information shall only be

11 disclosed in compliance with relevant state or federal privacy laws,

12 rules, regulations, or policies including, but not limited to, the

13 Health Insurance Portability and Accountability Act of 1996.

14  G. The Oklahoma Health Care Authority Board shall promulgate

15 rules to implement the provisions of this section.

16  SECTION 4.      NEW LAW  A new section of law to be codified

17 in the Oklahoma Statutes as Section 1-134.2 of Title 63, unless

18 there is created a duplication in numbering, reads as follows:

19  As used in the Oklahoma Health Care Transparency Initiative Act

20 of 2026:

21  1. "Board" means the Oklahoma Health Care Authority Board;

22  2. "Claims data" means information included in an

23 institutional, professional, or pharmacy claim or equivalent

24 information transaction for a covered individual including the

    Req. No. 14605                                                  Page 5
1 amount paid to a provider of health care services plus any amount

2 owed by the covered individual;

3   3. "Covered individual" means a natural person who is a

4 resident of this state and is eligible to receive medical, dental,

5 or pharmaceutical benefits under any policy, contract, certificate,

6 evidence of coverage, rider, binder, or endorsement that provides

7 for or describes coverage;

8   4. "Direct personal identifiers" means information relating to

9 a covered individual that contains primary or obvious identifiers,

10 such as the individual's name, street address, email address,

11 telephone number, or Social Security number. Direct personal

12 identifiers shall not include geographic or demographic information

13 that would allow the identification of a covered individual;

14  5. "Enrollment data" means demographic information and other

15 identifying information related to covered individuals, including

16 direct personal identifiers;

17  6. "Office" means the Office of the State Coordinator for

18 Health Information Exchange created under Section 1-132.1 of Title

19 63 of the Oklahoma Statutes;

20  7. "Oklahoma Health Care Transparency Initiative" means an

21 initiative to create a database, including ongoing all-payer claims

22 database projects that receive and store data from a submitting

23 entity relating to medical, dental, pharmaceutical, and other

24 insurance claims information, unique identifiers, and geographic and

    Req. No. 14605                                                Page 6
1 demographic information for covered individuals as permitted in the

2 Oklahoma Health Care Transparency Initiative Act of 2026, and

3 provider files, for the purpose of implementing the Oklahoma Health

4 Care Transparency Initiative Act of 2026;

5   8. "Protected health information" means health information as

6 protected by the Health Insurance Portability and Accountability Act

7 of 1996, Pub. L. No. 104-191;

8   9. "Provider" means an individual or entity licensed by the

9 state to provide health care services;

10  10. "State-designated entity for health information exchange"

11 or "state-designated entity" means the health information exchange

12 organization designated by the State of Oklahoma as the state-

13 designated entity for health information exchange under Section 1-

14 133 of Title 63 of the Oklahoma Statutes;

15  11. a. "Submitting entity" means:

16  (1) an entity that provides health or dental

17                  insurance or a health or dental benefit plan in

18                  this state, including, but not limited to, an

19                  insurance company, medical services plan, managed

20                  care organization, hospital plan, hospital

21                  medical service corporation, health maintenance

22                  organization, or fraternal benefit society,

23                  provided that the entity has covered individuals

24                  and the entity had at least two thousand (2,000)

    Req. No. 14605                                                 Page 7
1                   covered individuals in the previous calendar

2                   year,

3   (2) a health benefit plan offered or administered by

4                   or on behalf of the state or an agency or

5                   instrumentality of the state, including, but not

6                   limited to, benefits administered by a managed

7                   care organization, notwithstanding the number of

8                   covered individuals in the previous year,

9   (3) a health benefit plan offered or administered by

10                  or on behalf of the federal government with the

11                  agreement of the federal government,

12  (4) the Workers' Compensation Commission,

13  (5) any other entity providing a plan of health

14                  insurance or health benefits subject to state

15                  insurance regulation, or a third-party

16                  administrator; provided, that the entity has

17                  covered individuals and the entity had at least

18                  two thousand (2,000) covered individuals in the

19                  previous calendar year,

20  (6) a health benefit plan subject to the Employee

21                  Retirement Income Security Act of 1974, Pub. L.

22                  No. 93-406, and that is fully insured,

23  (7) a risk-based provider organization licensed by

24                  the Insurance Department, and

    Req. No. 14605                                                Page 8
1   (8) any entity that contracts with the Department of

2                   Corrections to provide medical, dental, or

3                   pharmaceutical care to inmates.

4   b. A submitting entity shall not include:

5   (1) an entity that provides health insurance or a

6                   health benefit plan that is accident-only,

7                   specified disease, hospital indemnity, long-term

8                   care, disability income, or other supplemental

9                   benefit coverage,

10  (2) an employee of a welfare benefit plan as defined

11                  by federal law that is also a trust established

12                  pursuant to collective bargaining subject to the

13                  Labor Management Relations Act of 1947, Pub. L.

14                  No. 80-101,

15  (3) a health benefit plan subject to the Employee

16                  Retirement Income Security Act of 1974, Pub. L.

17                  No. 93-406, that is self-funded,

18  (4) a Medicare supplemental policy as defined by 42

19                  C.F.R., Section 403.205, or

20  (5) a pharmacy benefits manager; and

21  12. "Unique identifier" means any identifier that is guaranteed

22 to be unique among all identifiers for covered individuals but does

23 not include direct personal identifiers.

24

    Req. No. 14605                                              Page 9
1   SECTION 5.      NEW LAW     A new section of law to be codified

2 in the Oklahoma Statutes as Section 1-134.3 of Title 63, unless

3 there is created a duplication in numbering, reads as follows:

4   A. Beginning July 1, 2027, there is hereby created the Oklahoma

5 Health Care Transparency Initiative. The initiative shall be

6 governed by the state-designated entity for health information

7 exchange and overseen by the Office of the State Coordinator for

8 Health Information Exchange.

9   B. Beginning on a date determined by the Oklahoma Health Care

10 Authority Board, and thereafter in a frequency specified in rules

11 promulgated by the Board, a submitting entity shall submit claims

12 data, unique identifiers, and geographic and demographic information

13 for covered individuals as permitted in the Oklahoma Health Care

14 Transparency Initiative Act of 2026, and provider files to the

15 state-designated entity for health information exchange in

16 accordance with standards and procedures promulgated by the Board.

17 The Office shall begin implementation of the requirements of this

18 subsection on or before July 1, 2026.

19  C. 1. A health benefit plan, person, or entity excluded from

20 the definition of submitting entity as provided by Section 4 of this

21 act shall not be subject to the requirements of subsection B of this

22 section, but may voluntarily submit claims data, unique identifiers,

23 and geographic and demographic information for covered individuals

24 as permitted in the Oklahoma Health Care Transparency Initiative Act

    Req. No. 14605                                                 Page 10
1 of 2026, and provider files to the state-designated entity in

2 accordance with standards and procedures promulgated by the Board.

3   2. To the extent the excluded health benefit plan, person, or

4 entity voluntarily submits data described in this subsection to the

5 state-designated entity, the health benefit plan, person, or entity

6 shall comply with all requirements of the Oklahoma Health Care

7 Transparency Initiative Act of 2026, other than subsection B of this

8 section, including, but not limited to, compliance with applicable

9 state and federal data privacy and security laws.

10  D. 1. The State Department of Health shall submit all public

11 health data and vital statistics data collected by the Department

12 under Title 63 of the Oklahoma Statutes to the state-designated

13 entity for integration into the Oklahoma Health Care Transparency

14 Initiative database created under this section including, but not

15 limited to, data collected regarding hospital discharge and

16 emergency department records for the uninsured, birth and death

17 records, and disease registry data.

18  2. The data submitted under paragraph 1 of this subsection

19 shall be assigned a unique identifier and may be used in accordance

20 with the Oklahoma Health Care Transparency Initiative Act of 2026

21 and the rules promulgated under the Oklahoma Health Care

22 Transparency Initiative Act of 2026.

23

24

    Req. No. 14605                                                Page 11
1   SECTION 6.      NEW LAW  A new section of law to be codified

2 in the Oklahoma Statutes as Section 1-134.4 of Title 63, unless

3 there is created a duplication in numbering, reads as follows:

4   A. Data and other information submitted under Section 5 of this

5 act shall be treated as confidential and shall be exempt from

6 disclosure as a record under the Oklahoma Open Records Act as

7 defined in Section 24A.3 of Title 51 of the Oklahoma Statutes and

8 are not subject to subpoena except to the extent provided in the

9 Oklahoma Insurance Code.

10  B. Data and other information submitted under Section 5 of this

11 act may only be collected, stored, used, disclosed, or released in

12 compliance with applicable state and federal data privacy and

13 security law, rules promulgated by the Oklahoma Health Care

14 Authority Board, and data governance policies established by the

15 state-designated entity for health information exchange.

16  C. Data and other information in the Oklahoma Health Care

17 Transparency Initiative shall, to the extent authorized by rules

18 promulgated by the Board, be available:

19  1. When disclosed in a form and manner that ensures the privacy

20 and security of protected health information as required by state

21 and federal laws, as a resource to insurers, employers, purchasers

22 of health care, researchers, state agencies, and health care

23 providers to allow for assessment of health care utilization,

24 expenditures, and performance in this state, including, but not

    Req. No. 14605                                                Page 12
1 limited to, as a resource for hospital community health needs

2 assessments; and

3   2. To state programs regarding health care quality and costs

4 for use in improving health care in the state, subject to rules

5 prescribed by the Board conforming to state and federal privacy laws

6 or limiting access to limited-use data sets.

7   D. Data and other information in the Oklahoma Health Care

8 Transparency Initiative shall not be used to disclose trade secrets

9 of submitting entities.

10  E. Notwithstanding any other section of law, the Oklahoma

11 Health Care Transparency Initiative shall not publicly disclose any

12 data or other information that contains direct personal identifiers.

13  F. The Oklahoma Health Care Transparency Initiative Act of 2026

14 shall not be construed to supersede, limit, amend, or abrogate any

15 data privacy or security law, rule, or policy.

16  SECTION 7.      NEW LAW  A new section of law to be codified

17 in the Oklahoma Statutes as Section 1-134.5 of Title 63, unless

18 there is created a duplication in numbering, reads as follows:

19  A. Except for state or federal agencies that are submitting

20 entities, a submitting entity that fails to submit data as required

21 by the Oklahoma Health Care Transparency Initiative Act of 2026 or

22 the rules promulgated by the Oklahoma Health Care Authority Board

23 may be subject to a fine assessed by the Insurance Department.

24

    Req. No. 14605                                                 Page 13
1   B. The Insurance Commissioner shall adopt a schedule of fines

2 not to exceed One Thousand Dollars ($1,000.00) per day for each day

3 the violation occurs, to be determined by the severity of the

4 violation.

5   C. A fine assessed under this section may be remitted or

6 mitigated upon such terms and conditions as the Insurance

7 Commissioner considers proper and consistent with public health and

8 safety.

9   D. Of the proceeds from fines remitted under this section, the

10 Insurance Department shall retain a portion of such proceeds

11 necessary to cover the cost to the Department of administering the

12 assessment and collection of such fines, and the Department shall

13 remit the remainder of the proceeds to the Oklahoma Health Care

14 Authority. The Authority may only use proceeds from fines assessed

15 under this section to fund operations of the Oklahoma Health Care

16 Transparency Initiative.

17  SECTION 8.      AMENDATORY  51 O.S. 2021, Section 24A.3, as

18 last amended by Section 1, Chapter 404, O.S.L. 2025 (51 O.S. Supp.

19 2025, Section 24A.3), is amended to read as follows:

20  Section 24A.3. As used in the Oklahoma Open Records Act:

21  1. "Record" means all documents including, but not limited to,

22 any book, paper, photograph, microfilm, data files created by or

23 used with computer software, computer tape, disk, record, sound

24 recording, film recording, video record or other material regardless

    Req. No. 14605                                               Page 14
1 of physical form or characteristic, created by, received by, under

2 the authority of, or coming into the custody, control or possession

3 of public officials, public bodies or their representatives in

4 connection with the transaction of public business, the expenditure

5 of public funds or the administering of public property. Record

6 shall also mean applications and other documents related to

7 licensure matters that are filed of record in a district court,

8 including, but not limited to, marriage licenses, process server

9 licenses, closing out sale licenses, transient merchant licenses,

10 pool hall licenses, and bail bondsmen registration. Record does not

11 mean:

12        a. computer software, or

13        b. nongovernment personal effects, or

14        c. data or other information submitted to the state-

15        designated entity for information exchange under

16        Section 1-133 of Title 63 of the Oklahoma Statutes or

17        under the Oklahoma Health Care Transparency Initiative

18        Act of 2026;

19  2. "Public body" shall include, but not be limited to, any

20 office, department, board, bureau, commission, agency, trusteeship,

21 authority, council, committee, trust or any entity created by a

22 trust, county, city, village, town, township, district, school

23 district, fair board, court, executive office, advisory group, task

24 force, study group or any subdivision thereof, supported in whole or

    Req. No. 14605                                                 Page 15
1 in part by public funds or entrusted with the expenditure of public

2 funds or administering or operating public property, and all

3 committees, or subcommittees thereof. Except for the records

4 required by Section 24A.4 of this title, public body does not mean

5 judges, justices, the Council on Judicial Complaints, the

6 Legislature or legislators. Public body shall not include an

7 organization that is exempt from federal income tax under Section

8 501(c)(3) of the Internal Revenue Code of 1986, as amended, and

9 whose sole beneficiary is a college or university, or an affiliated

10 entity of the college or university, that is a member of The

11 Oklahoma State System of Higher Education. Such organization shall

12 not receive direct appropriations from the Legislature. The

13 following persons shall not be eligible to serve as a voting member

14 of the governing board of the organization:

15  a. a member, officer, or employee of the Oklahoma State

16  Regents for Higher Education,

17  b. a member of the board of regents or other governing

18  board of the college or university that is the sole

19  beneficiary of the organization, or

20  c. an officer or employee of the college or university

21  that is the sole beneficiary of the organization;

22  3. "Public office" means the physical location where public

23 bodies conduct business or keep records;

24

    Req. No. 14605                                               Page 16
1   4. "Public official" means any official or employee of any

2 public body as defined herein; and

3   5. "Law enforcement agency" means any public body charged with

4 enforcing state or local criminal laws and initiating criminal

5 prosecutions including, but not limited to: police departments;

6 state and local fire marshals when investigating potential

7 violations of federal, state, or local criminal laws or when acting

8 on behalf of a law enforcement agency; county sheriffs; the

9 Department of Public Safety; the Oklahoma State Bureau of Narcotics

10 and Dangerous Drugs Control; the Alcoholic Beverage Laws Enforcement

11 Commission; and the Oklahoma State Bureau of Investigation.

12  SECTION 9. It being immediately necessary for the preservation

13 of the public peace, health or safety, an emergency is hereby

14 declared to exist, by reason whereof this act shall take effect and

15 be in full force from and after its passage and approval.

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17  60-2-14605      TJ  12/10/25

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    Req. No. 14605                                                Page 17
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