Vote Smart's Synopsis:

Vote to pass a bill that authorizes an individual to bring a civil action against an individual who submits a false claim to the state.

Highlights:

• Authorizes an individual to file a civil lawsuit against an individual who knowingly submits, uses, or benefits from a false or fraudulent “claim” to the state (Ch. 14). 

• Defines “claim” as any request or demand for money or property that is presented to a representative of the state and is meant to be used to advance a governmental program or interest (Ch. 14).

• Establishes a civil penalty of $5,500 to $11,000 and 3 times the amount of damages sustained by the state for an individual who knowingly submits, uses, or benefits from a false claim (Ch. 14).

• Authorizes the state to join an independently-filed lawsuit against an individual who knowingly commits fraud against the state by filing a false claim (Ch. 14). 

• Authorizes the individual who filed the lawsuit to continue to prosecute the case if the state elects to not participate (Ch. 14).

• Requires the court to award “reasonable” reimbursement for legal fees to an individual who filed a successful false claim lawsuit, as well as the following portions of the proceeds of the lawsuit (Ch. 14):
• Not less than 15% and not more than 25% if the state participated in the lawsuit; or 
• Not less than 25% and not more than 30% if the state did not participate in the lawsuit.

• Establishes the State False Claims Act Fund, to which all remaining funds after the settlement of a false claim lawsuit will be deposited, and which shall be used to fund secondary road maintenance, volunteer fire departments, and Title 19 waivers for senior citizens (Ch. 14).

• Authorizes the court to award the defendant in a false claim lawsuit a “reasonable” amount for legal fees if the following conditions are met (Ch. 14): 
• The defendant won the lawsuit;
• The state did not participate in the lawsuit; and
• The court finds that the lawsuit was filed for reasons that are “clearly frivolous,” “clearly vexatious,” or “for purposes of harassment.”  

Full Bill Text