IL HB1017

Amends the Mental Health and Developmental Disabilities Confidentiality Act to define new terms including "business associate," "covered entity," "health information exchange" (HIE), and "integrated health system" aligned with HIPAA standards.

Permits therapists, integrated health systems, and interdisciplinary teams to disclose recipient records without consent for treatment, care coordination, and health information exchange purposes, including to business associates and through HIEs.

Requires HIEs to provide recipients with meaningful notice and the reasonable opportunity to opt-out of further disclosure of their records to third parties, with ability to revoke opt-out decisions.

Allows creation and disclosure of de-identified information and limited data sets without consent in accordance with HIPAA standards for research, statistical, and other permissible purposes.

Adds HIE disclosures as an allowable disclosure category under existing exceptions, while prohibiting disclosure of records to law enforcement through HIEs and maintaining existing privacy protections for personal notes and sensitive communications.