This technical report is part of a series on AIDS/HIV (Acquired Immune Deficiency Syndrome/Human Immunodeficiency Virus) and is intended to help link various legal advocacy organizations providing services to persons with mental illness or developmental disabilities. This report focuses on liability issues from worker and client exposure to HIV. General principles of law are applied to findings of liability that might be brought against an agency or facility on claims of negligent transmission between clients or workers in the following situations: failure to provide a safe environment; negligent worker or client exposure; failure to maintain confidentiality; and failure to protect or warn. Agencies are encouraged to minimize their potential liability by policies which include: (1) an infection control policy and implementation procedures; (2) a sexual behavior policy and procedures for counseling and intervening with recalcitrant clients; (3) a record keeping policy and procedures on confidentiality; (4) an HIV testing policy and informed consent procedures; and (5) creation of a professional advisory committee with multi-disciplinary members that include disability attorneys, physicians, social workers, etc. to advise on policy development and ongoing issues. Contains 33 references and 12 additional resources. (DB)