2000-02-28                     House Journal                      Page 2334
HB 425                                                                       
HOUSE BILL NO. 425 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to misrepresentation and false claims made                   
against the state or a municipality; and providing for an effective            
date."                                                                         
                                                                               

2000-02-28                     House Journal                      Page 2335
HB 425                                                                       
was read the first time and referred to the Community & Regional               
Affairs, Judiciary, and Finance Committees.                                    
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Indeterminate fiscal note, Dept. of Law, 2/28/00                               
Zero fiscal note, Dept. of Administration/All Depts., 2/28/00                  
                                                                               
                                                                               
The Governor's transmittal letter dated February 25, 2000, appears             
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
This bill I transmit today would fill a gap in our statutory law by            
providing general authority for the civil prosecution of a person who          
makes a false claim for, or a misrepresentation regarding, money or            
property against the state or a municipality.  The public needs some           
way of ensuring that persons who seek to recover money or property             
from the state or a municipality are doing so in good faith.  The most         
effective means of doing this is to provide for clear consequences for         
unlawful conduct.  This bill would allow for a civil penalty of damages        
up to three times the amount suffered and court costs and attorneys            
fees from persons who make a misrepresentation or false claim against          
the state or a municipality.                                                   
                                                                               
                                                                               
The bill would provide incentives to cooperate in the prosecution of a         
misrepresentation or false claim.  Also, the bill would apply only to          
matters involving at least $500 and would not apply to unemployment,           
workers' compensation, state tax, public assistance, or temporary              
assistance claims.  These programs have specific authority elsewhere           
in statute providing for the prosecution of false claims.  The bill also       
provides procedures for circumstances in which both state and                  
municipal money or property are involved and sets a limitation period          
of 10 years after which suits for misrepresentations and false claims          
are barred.                                                                    
                                                                               
                                                                               

2000-02-28                     House Journal                      Page 2336
HB 425                                                                       
Nearly all states and the federal government have false claims statutes.       
It is time that Alaska had similar authority to protect the public             
treasury from wrongful claims.                                                 
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"