(a) The State Health Alliance For Records Exchange shall:

(1) Serve as the official health information exchange for the State of Arkansas;

(2) Be organized for the purpose of improving the health of Arkansans by:

(A) Promoting efficient and effective communication among multiple healthcare providers, including without limitation hospitals, physicians, payers, employers, pharmacies, laboratories, and other healthcare entities;

(B) Creating efficiencies in healthcare costs by eliminating redundancy in data capture and storage and reducing administrative, billing, and data collection costs;

(C) Creating the ability to monitor community health status; and

(D) Providing reliable information to healthcare consumers and purchasers regarding the quality and cost-effectiveness of health care, health plans, and healthcare providers;

(3) (A) Until a nonprofit corporation operates the State Health Alliance for Records Exchange, the State Health Alliance for Records Exchange shall be established and operated by the Office of Health Information Technology with the advice of the Health Information Exchange Council, consisting of the following members appointed by the Director of the Department of Health:

(i) The Office of Health Information Technology Coordinator;

(ii) A representative of the Department of Finance and Administration;

(iii) A representative of the Department of Human Services;

(iv) A representative of the Department of Information Systems;

(v) A representative of the health insurance industry;

(vi) A representative of the Arkansas Foundation for Medical Care, Inc.;

(vii) A representative of the Arkansas Hospital Association, Inc.;

(viii) A representative of the Arkansas Medical Society, Inc.;

(ix) A representative of the Arkansas Minority Health Commission;

(x) A representative of the Arkansas Nurses Association;

(xi) A representative of the Division of Science and Technology of the Arkansas Economic Development Commission;

(xii) A representative of the Arkansas Pharmacists Association;

(xiii) A representative of the business community;

(xiv) A representative of the Community Health Centers of Arkansas, Inc.;

(xv) A representative of the University of Arkansas for Medical Sciences;

(xvi) A representative of the Arkansas Health Care Association; and

(xvii) Two (2) healthcare consumers.

(b) The Chair of the Health Information Exchange Council shall be elected by the members of the council.

(c) All members will serve until the operational responsibility and authority for the State Health Alliance for Records Exchange is transferred to a nonprofit corporation.

(d)

(1) The State Health Alliance for Records Exchange is not a healthcare provider and is not subject to claims under § 16-114-201 et seq.

(2) A person who participates in or subscribes to the services or information provided by the State Health Alliance for Records Exchange shall not be liable in any action for damages or cost of any nature that results solely from the person's use or failure to use the State Health Alliance for Records Exchange information or data that was imputed or retrieved under the Health Insurance Portability and Accountability Act of 1996, as it existed on January 1, 2011, and regulations adopted under the act, state confidentiality laws and the rules of the State Health Alliance for Records Exchange as approved by the Office of Health Information Technology or the governing body of the nonprofit corporation.

(3) A person shall not be subject to antitrust or unfair competition liability based on membership or participation in the State Health Alliance for Records Exchange, which provides an essential governmental function for the public health and safety and enjoys state action immunity.

(e) A person who provides information and data to the State Health Alliance for Records Exchange retains a property right in the information or data but grants to the other participants or subscribers a nonexclusive license to retrieve and use that information or data under the Health Insurance Portability and Accountability Act of 1996, as it existed on January 1, 2011, and any amendments and regulations adopted under the act, state confidentiality laws, and the rules of the State Health Alliance for Records Exchange.

(f) All processes or software developed, designed, or purchased by the State Health Alliance for Records Exchange shall remain the property of the State Health Alliance for Records Exchange subject to use by participants or subscribers under the rules of the State Health Alliance for Records Exchange.

(g) Patient-specific protected health information shall be disclosed only in accordance with the patient's authorization or in compliance with state confidentiality laws and the Health Insurance Portability and Accountability Act of 1996, as it existed on January 1, 2011, and regulations under the act.

(h) No later than December 31, 2014, executive branch agencies, including state boards, commissions, nonprofit corporations, and institutions of higher education, that implement, acquire, or upgrade health information technology systems shall use health information technology systems and products that meet minimum standards adopted by the State Health Alliance for Records Exchange.

(i) All identified or deidentified health information contained in, stored in, submitted to, transferred by, or released from the State Health Alliance for Records Exchange is not disclosable under applicable state or federal law except to:

(1) A healthcare provider; or

(2) Other authorized person or entity as described by policies and rules promulgated by the State Board of Health or the State Alliance for Records Exchange.

(j)

(1) Upon the transfer to a nonprofit corporation, the State Health Alliance for Records Exchange shall be governed under the bylaws and incorporation documents of the corporation.

(2) The bylaws and incorporation documents of the corporation shall further only the objectives and policies set forth in this chapter.