HF 1032

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to operation of state government; 
  1.3             establishing the Minnesota False Claims Act; assessing 
  1.4             penalties; proposing coding for new law as Minnesota 
  1.5             Statutes, chapter 12A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7                             CHAPTER 12A 
  1.8                         FALSE CLAIMS ACTION 
  1.9      Section 1.  [12A.01] [FALSE CLAIMS ACT.] 
  1.10     Subdivision 1.  [CITATION.] This section may be cited as 
  1.11  the Minnesota False Claims Act. 
  1.12     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
  1.13  following terms have the meanings given them: 
  1.14     (a) "Claim" includes any request or demand, whether under a 
  1.15  contract or otherwise, for money or property which is made to a 
  1.16  contractor, grantee, or other recipient if the state provides 
  1.17  any portion of the money or property which is requested or 
  1.18  demanded, or if the state will reimburse the contractor, 
  1.19  grantee, or other recipient for any portion of the money or 
  1.20  property which is requested or demanded. 
  1.21     (b) "Knowing" and "knowingly" mean that a person, with 
  1.22  respect to information: 
  1.23     (1) has actual knowledge of the information; 
  1.24     (2) acts in deliberate ignorance of the truth or falsity of 
  1.25  the information; or 
  2.1      (3) acts in reckless disregard of the truth or falsity of 
  2.2   the information, and no proof of specific intent to defraud is 
  2.3   required. 
  2.4      (c) "Person" means any natural person, partnership, 
  2.5   corporation, association or other legal entity, including the 
  2.6   state and any department, agency, or political subdivision of 
  2.7   the state. 
  2.8      (d) "State" means the state of Minnesota and includes any 
  2.9   department, agency, or political subdivision of the state. 
  2.10     Subd. 3.  [LIABILITY FOR CERTAIN ACTS.] Any person who: 
  2.11     (1) knowingly presents, or causes to be presented, to an 
  2.12  officer or employee of the state of Minnesota, a false or 
  2.13  fraudulent claim for payment or approval; 
  2.14     (2) knowingly makes, uses, or causes to be made or used, a 
  2.15  false record or statement to get a false or fraudulent claim 
  2.16  paid or approved by the state; 
  2.17     (3) conspires to defraud the state by getting a false or 
  2.18  fraudulent claim allowed or paid; 
  2.19     (4) has possession, custody, or control of property or 
  2.20  money used, or to be used, by the state and, intending to 
  2.21  defraud the state or willfully to conceal the property, 
  2.22  delivers, or causes to be delivered, less property than the 
  2.23  amount for which the person receives a certificate or receipt; 
  2.24     (5) is authorized to make or deliver a document certifying 
  2.25  receipt of property used, or to be used, by the state and, 
  2.26  intending to defraud the state, makes or delivers the receipt 
  2.27  having knowledge it is false in any material respect; 
  2.28     (6) knowingly buys, or receives as a pledge of an 
  2.29  obligation or debt, public property from an officer or employee 
  2.30  of the state who lawfully may not sell or pledge the property; 
  2.31  or 
  2.32     (7) knowingly makes, uses, or causes to be made or used, a 
  2.33  false record or statement to conceal, avoid, or decrease an 
  2.34  obligation to pay or transmit money or property to the state, 
  2.35  is liable to the state for a civil penalty of not less than 
  2.36  $5,000 and not more than $10,000, plus three times the amount of 
  3.1   damages which the state sustains because of the act of that 
  3.2   person, except that if the court finds that: 
  3.3      (i) the person committing a violation under this section 
  3.4   furnished officials of the state responsible for investigating 
  3.5   the false claims violations with all information known to the 
  3.6   person about the violation within 30 days after the date on 
  3.7   which the defendant first obtained the information; 
  3.8      (ii) the person fully cooperated with any state 
  3.9   investigation of the violation; and 
  3.10     (iii) at the time the person furnished the state with 
  3.11  information about the violation, no criminal prosecution, civil 
  3.12  action, or administrative action had commenced under this 
  3.13  section with respect to the violation, and the person did not 
  3.14  have actual knowledge of the existence of an investigation into 
  3.15  the violation, the court may assess not less than two times the 
  3.16  amount of damages which the state sustains because of the act of 
  3.17  the person.  A person violating this section shall also be 
  3.18  liable to the state for the costs of a civil action brought to 
  3.19  recover any penalty or damages. 
  3.20     Subd. 4.  [EXCLUSION.] This section does not apply to 
  3.21  claims, records, or statements made under portions of Minnesota 
  3.22  Statutes relating to taxation. 
  3.23     Subd. 5.  [RESPONSIBILITIES OF ATTORNEY GENERAL.] The 
  3.24  attorney general may investigate violations of this section.  If 
  3.25  the attorney general finds that a person has violated or is 
  3.26  violating this section, the attorney general may bring a civil 
  3.27  action under this section against the person to enjoin any act 
  3.28  in violation of this section and to recover damages and 
  3.29  penalties.  The attorney general need not prove actual damages 
  3.30  to the state in order to maintain an action under this section.  
  3.31  In any action brought by the attorney general under this 
  3.32  section, the state is also entitled to recover attorney fees, 
  3.33  investigative expenses, and costs.  
  3.34     Subd. 6.  [LIMITATIONS PERIOD.] A civil action brought by 
  3.35  the attorney general under this section to redress a violation 
  3.36  shall not be brought more than six years after the date on which 
  4.1   the violation occurred or the date on which the state should 
  4.2   have discovered the violation through the exercise of reasonable 
  4.3   diligence. 
  4.4      Subd. 7.  [STANDARD OF PROOF.] In any action brought by the 
  4.5   attorney general under this section, the state shall be required 
  4.6   to prove all essential elements of the cause of action by a 
  4.7   preponderance of the evidence. 
  4.8      Subd. 8.  [REMEDIES CUMULATIVE.] The remedies prescribed in 
  4.9   this section are cumulative and in addition to all other 
  4.10  applicable criminal, civil, or administrative remedies and 
  4.11  penalties. 
  4.12     Subd. 9.  [COLLATERAL ESTOPPEL.] Notwithstanding any other 
  4.13  provision of law, the Minnesota Rules of Criminal Procedure, or 
  4.14  the Minnesota Rules of Evidence, a final judgment rendered in 
  4.15  favor of the state in any criminal proceeding charging fraud or 
  4.16  false statements, whether upon a verdict after trial or upon a 
  4.17  plea of guilty, shall stop the defendant from denying the 
  4.18  essential elements of the offense in any action which involves 
  4.19  the same transaction as in the criminal proceeding and which is 
  4.20  brought under this section.