LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 18, 2001 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB11 by Nelson (Relating to protecting the privacy of medical records; providing penalties.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would enact numerous provisions relative to the privacy of medical records. (Many provisions are conceptually similar to mandated provisions of the federal Health Insurance Portability and Accountability Act (HIPAA) final rule.) It is assumed that costs primarily include reprogramming of automation systems which contain protected health information; however, such costs would be insignificant. It is further assumed that TDH's responsibilities with regard to rulemaking could be absorbed within existing resources. It is also assumed that additional costs would be needed to implement other provisions of HIPAA which are beyond the scope of the bill. The bill would be effective September 1, 2001, but compliance would not be required until September 1, 2003. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 302 Office of the Attorney General, 324 Texas Department of Human Services, 453 Texas Workers' Compensation Commission, 454 Texas Department of Insurance, 529 Health and Human Services Commission, 696 Texas Department of Criminal Justice, 709 Texas A&M University System Health Science Center, 739 Texas Tech University Health Sciences Center, 763 UNT Health Science Center , 655 TX Dept. of Mental Health & Mental Retardation LBB Staff: JK, SD, JO, AJ