LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 15, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB11  by Nelson (Relating to protecting the privacy of
               medical records; providing penalties.), Committee Report
               1st House, Substituted
  
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*  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, JO, AJ