(A) Records, reports, applications, and files kept on any client or potential client of the Continuum of Care are confidential and only may be disclosed in order to develop or provide appropriate services for the client or potential client unless:

1. (1) the client or potential client or his guardian consents;
2. (2) a court orders the disclosure for conduct of proceedings before it upon a showing that disclosure is in the public interest;
3. (3) disclosure is necessary for research conducted or authorized by the Continuum of Care; or
4. (4) disclosure is necessary to any entity or state agency providing or potentially providing services to the client or potential client.

(B) Nothing in this section:

1. (1) precludes disclosure, upon proper inquiry, of information as to a client's or potential client's current condition to members of his family; or
2. (2) requires the release of records of which disclosure is prohibited or regulated by federal law.