How Privacy Acts Impact School District Functionality

How do FERPA and HIPAA impact school district functionality, and more specifically, a classroom teacher?

Through the years, there have been several significant federal mandates that have impacted education specific to student information and the rights of children with disabilities. Two of those federal mandates are the Family Educational Rights and Privacy Act (FERPA) and The Health Insurance Portability and Accountability Act (HIPAA). FERPA directs schools to provide the annual notification. What is that, and what is the reason for doing it? In what ways could a teacher possibly violate FERPA? Is violation of FERPA grounds for a libel suit against a teacher or school official? Why?