The Texas Department of Human Services (DHS) proposes to repeal Subchapter A, concerning disclosure of information, §§71.1-71.4; Subchapter B, concerning confidentiality of information, §§71.11-71.17; Subchapter C, concerning adoption registry, §§71.21- 71.28; Subchapter D, concerning records management, §71.31; and Subchapter E, concerning public interest information, §71.40, in its Public Information Chapter. DHS proposes new Subchapter A, concerning disclosure of information, §§71.101-71.103; Subchapter B, concerning client information, §§71.201-71.206; Subchapter C, concerning privacy of health information, §§71.301-71.310; and Subchapter D, concerning correcting information, §§71.401-71.405, in its newly titled Information Practices chapter. The purpose of the repeals and new sections is to adopt rules regarding the privacy of health information pursuant to the Health and Safety Code, Chapter 181, and the Standards for Privacy of Individually Identifiable Health Information adopted by the U.S. Department of Health and Human Services under the Health Insurance Portability and Accountability Act of 1996 (45 Code of Federal Regulations §§164.500-164.534). The repeals and new sections also eliminate unnecessary rules and make the necessary rules consistent with current law and with current DHS duties and practices.

New Subchapter A covers the disclosure of information held by DHS, detailing how the public can request copies of or access to information and related charges for the information. New Subchapter B covers the handling of client information, except to the extent that the handling of client information is covered in program-specific rules. Subchapter C covers the handling of medical or health information and the rights individuals have regarding their own health information. Subchapter D covers the right of an individual to correct personal information held by DHS and the procedures for exercising this right. Rules in proposed Subchapter D are being moved from Chapter 79, Subchapter K, in order to locate rules concerning the handling of information as much as possible within the same chapter.

James R. Hine, Commissioner, has determined that, for the first five-year period the proposed sections will be in effect, there will be fiscal implications for state government as a result of implementing the Standards for Privacy of Individually Identifiable Health Information. The impact on state government is an estimated additional cost of $1,139,896 in fiscal year (FY) 2003; $0 in FY 2004; $0 in FY 2005; $0 in FY 2006; and $0 in FY 2007. There will be no fiscal implications for local governments.

Mr. Hine also has determined that, for each year of the first five years the repeals and new sections are in effect, the public benefit anticipated as a result of enforcing the sections will be the elimination of unnecessary rules and the implementation of necessary rules that are consistent with current law and with current DHS duties and practices. The primary public benefit of the rules regarding the privacy of health information in Subchapter C is that people will be informed of their rights regarding health information under both state and federal law and of how to exercise those rights. There will be no adverse economic effect on small or micro businesses or other businesses as a result of enforcing or administering the repeals and new sections, because these rules deal with the rights of individuals and the procedures for exercising those rights. The obligations imposed by these rules are placed on the government, not on private entities such as businesses. There is no anticipated economic cost to persons who are required to comply with the proposed repeals and new sections. There is no anticipated effect on local employment in geographic areas affected by these repeals and new sections.

Questions about the content of this proposal may be directed to Margaret Roll at (512) 438- 3812 in DHS Legal Services. Written comments on the proposal may be submitted to Supervisor, Rules and Handbooks Unit-311, Texas Department of Human Services E-205, P.O. Box 149030, Austin, Texas 78714-9030, within 30 days of publication in the Texas Register .

Under §2007.003(b) of the Government Code, DHS has determined that Chapter 2007 of the Government Code does not apply to these rules. Accordingly, DHS is not required to complete a takings impact assessment regarding these rules.

Subchapter A. DISCLOSURE OF INFORMATION

Subchapter A. DISCLOSURE OF INFORMATION

Subchapter K. CORRECTING INFORMATION

Subchapter A. GENERAL RULES

The Texas Commission for the Blind (TCB) proposes the repeal of §171.2 pertaining to Coordinated Services for Children and Youths and the amendment of §171.3 pertaining to Transition Planning for Students Receiving Special Education. The repeal of §171.2 is necessary because the reason for its adoption no longer exists. The lead agency in the memorandum of understanding (MOU) changed in the last legislative session and the revised statutory language no longer requires the MOU to be adopted by rule. A new MOU has been signed by applicable agencies and is now posted on the Health and Human Services Commission's public website.

The proposed amendment to §171.3 pertaining to Transition Planning for Students Receiving Special Education is necessary to correct the cross-reference to the Texas Education Agency's rules, which contains the text of a new MOU being proposed for adoption by reference. The new MOU addresses the respective roles and responsibilities of participating agencies in the sharing of information about, and coordination of services to, eligible students with disabilities receiving transition services. The rule as amended and the new MOU will more clearly establish the respective responsibilities of each agency for the provision of services necessary to prepare students enrolled in special education programs for a successful transition to life outside of the public school system.

Texas Education Code (TEC), §29.011, requires that the TEA, the Texas Department of Mental Health and Mental Retardation (TDMHMR), and the Texas Rehabilitation Commission (TRC), by a cooperative effort, develop and by rule adopt an MOU. TEC §29.011 specifies that the TEA shall coordinate the development of the MOU and that the TEA, the TDMHMR, and the TRC may request other appropriate agencies to participate in the development of the MOU. Accordingly, the proposed MOU includes the participation of the following agencies: Texas Commission for the Blind, Texas Commission for the Deaf and Hard of Hearing, Texas Department of Health, Texas Department of Housing and Community Affairs, Texas Department of Human Services, Texas Department of Mental Health and Mental Retardation, Texas Department of Protective and Regulatory Services, Texas Education Agency, Texas Higher Education Coordinating Board, Texas Juvenile Probation Commission, Texas Rehabilitation Commission, Texas Workforce Commission, and Texas Youth Commission.

The proposed new MOU (codified as 19 TAC §89.1110) and referenced within the Texas Commission for the Blind's rule establishes definitions; better addresses information sharing and agency participation; and clarifies and adds provisions relating to regional and local collaboration, cross-agency training, and dispute resolution. Other terms of the proposed MOU provide for the MOU to be reviewed and considered for expansion, modification, or amendment at any time the executive officers of the parties agree or at least every four years.

Alvin Miller, Chief Financial Officer, has determined that for each year of the first five years the repeal and amended rule are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Miller has also determined that for each year of the first five years the repeal and amended rule are in effect the public benefit anticipated as a result of enforcing the rule is two-fold. The repeal eliminates unnecessary rules. The proposed amendment creates a coordinated transition service delivery system that results in increased opportunities for students to achieve their post-secondary goals for adult life benefiting the individual, his or her family, and the community. Additionally, better-coordinated services are more cost effective for the state by reducing costly duplicative efforts by multiple agencies. There will not be an effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed repeal and new section.

Comments on the proposal may be submitted to Policy and Rules Coordinator, Texas Commission for the Blind, 4800 North Lamar, Austin, Texas 78756, or by e-mail to pio@tcb.state.tx.us, or by fax (512) 377-0682. Comments must be received by the Commission no later than 30 days from the date this proposal is published in the Texas Register .