IN SB0254

Creates a new privilege for voluntary health facility audit reports, making them inadmissible as evidence in civil or administrative actions effective July 1, 2010.

Allows health facility audit reports to be admissible in criminal proceedings, and permits their use without waiving the privilege in criminal cases.

Removes privilege protection if the audit report was issued after January 1, 2010 and shows evidence of noncompliance with state or federal law, and the facility did not promptly initiate efforts to achieve compliance.

Removes privilege protection if asserted for fraudulent purposes or if the facility owner or operator voluntarily waives it.

Prohibits the privilege from applying to documents required to be reported to the state department, information from independent sources, or information obtained through direct regulatory observation or monitoring.