The Department of Children and Family Services (“DCFS”) has proposed amendments to its regulation governing Reports of Child Abuse and Neglect. [89 Ill. Adm. Code §300]. The first amendment requires members of clergy to report cases of sexual abuse when “they have reasonable cause to believe that a child known to them in their professional or official capacity” may have been sexually abused. [89 Ill. Adm. Code §300.30(b)(2); 26 Ill.Reg. 16363, November 8, 2002]. Clergy are not required to disclose a confession or admission heard in his or her professional character or as a spiritual advisor. [89 Ill. Adm. Code §300.30(b)(2); 26 Ill.Reg. 16365, November 8, 2002].

A second proposed amendment to the reporting rule would allow disclosure of appropriate information to an extended family member regarding the findings and actions taken by DCFS to ensure the safety of the child(ren) subject(s) of the investigation. An extended family member interviewed for relevant information during the investigation may request and receive the following information:

The Substance Abuse and Mental Health Services Administration (“SAMHSA”) has issued a proposed rule with comment period implementing the Charitable Choice provisions of the Public Health Service Act. [67 Fed. Reg. 77350; December 17, 2002]. The proposed regulations outline the requirements for faith-based organizations to compete for SAMSHA funding through Substance Abuse Prevention and Treatment Block Grants; Projects for Assistance in Transition from Homelessness formula grant funds; and SAMHSA discretionary grants funds for substance abuse prevention and treatment services. The purpose of the regulation is to ensure that these SAMHSA programs are open to all eligible organizations, regardless of religious character or affiliation as well as to establish proper uses to which the funds may be used.

Under these new provisions, SAMHSA programs may not exclude religious organizations from participation in competition for funds. Any SAMHSA funds provided directly to an organization may not be used to support inherently religious activities (e.g., worship, religious instruction or proselytization). The proposed rule explicitly states that the religious organization retains its independence from Federal, State and local governments and may continue to carry out its mission so long as it does not use SAMHSA funds to carry out these inherently religious activities. Individuals receiving treatment from a faith-based program must be given an opportunity to request referral to an alternative provider if the individual objects to the religious character of the program.

The agency is seeking comments on several provisions of the proposed rule including:

• What methods should States and program participants use and report to ensure implementation of the Charitable Choice provisions?
• How can organizations referring individuals to alternative providers ensure that the individuals make contact with alternative providers? Must the organization making the referral document the steps it has taken? And if so, how can this be accomplished in a manner consistent with applicable confidentiality laws?
• How can an alternative services system best be implemented in a system characterized by treatment gaps, shortages and waiting lists?
• What are the options for securing and financing alternative services? What sort of financial problems would be imposed if this responsibility is placed on grantees as a condition of the grant award?

The agency is accepting comments until February 18, 2003. If you would like more detailed information regarding this proposed rule and how it may affect your program or if you would like information on how to submit comments, please contact the Firm.

On December 2, 2002, President Bush signed the Mental Health Parity Reauthorization Act of 2002. This Act extends the mental health parity provisions of ERISA and the Public Health Services Act until December 31, 2003. [P.L. No. 107-313]. These provisions, which apply to employers with more than 50 employees, eliminate annual and lifetime dollar limits for mental health care if the health plan does not have these limits on medical or surgical benefits.

The Occupational Safety and Health Administration (“OSHA”) has delayed until January 1, 2004 three provisions in its Occupational Injury and Illness Recording and Reporting Requirements which were published January 19, 2001. [66 Fed.Reg. 5916].

The provisions being delayed (1) define musculoskeletal disorder (“MSD”) and require employers to indicate on the OSHA Log when an employee experiences a work-related MSD; (2) state that MSDs are not considered privacy concern cases; and (3) require employers to indicate on the OSHA 300 Log cases involving occupational hearing loss. [67 Fed. Reg. 77165; December 17, 2002].

The Centers for Medicare and Medicaid Services (“CMS”) has further delayed the effective date for a portion of the Phase I final Stark II regulations. The Stark II regulations govern physician self-referrals under the Medicare program for designated health services to entities or persons with which they have “financial relationships.” The final rule is being issued in two Phases; Phase I was issued January 4, 2001 (see our February 2001 Client Advisory for detailed information regarding the Phase I final rule); Phase II is expected to be issued early next year.

The November 22 rule delays until July 7, 2003 the provision pertaining to “percentage compensation” arrangements. The rule provides exceptions for certain compensation arrangements that “are set in advance.” CMS has said the delay in the effective date is to avoid the disruption of existing contractual arrangements for physician services while CMS reconsiders the definition of “percentage compensation arrangements that are set in advance.” [67 Fed.Reg. 70322; November 22, 2002].

Please feel free to contact the Firm if you would like further information regarding any of these issues.