Schwarzenegger signs bills creating hospital privacy oversight office

Hospitals and other health facilities will face harsh new penalties if their employees snoop in the medical records of patients, under legislation signed by California Gov. Arnold Schwarzenegger. The governor approved two bills creating a state office to police patient privacy and to allow the state to issue fines as high as $250,000 for multiple violations. Schwarzenegger rejected most other major healthcare legislation aimed at protecting average Californians who face significant medical bills or inadequate insurance.