2001-02-26                     Senate Journal                      Page 0502
SB 117                                                                                            
SENATE BILL NO. 117  BY THE SENATE RULES COMMITTEE                                                  
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act making a civil remedy available to the state                                      
          or a municipality against persons who make false                                          
          claims for, or certain misrepresentations regarding,                                      
          state or municipal money or other property; and                                           
          providing for an effective date."                                                         
                                                                                                    
was read the first time and referred to the Community and Regional                                  
Affairs, Judiciary and Finance Committees.                                                          
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Law                                                         
                                                                                                    
Governor's transmittal letter dated February 22:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
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 make demands on the public                                         
treasury by seeking 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 clear consequences for unlawful conduct. This                              
bill would allow for a civil penalty of up to three times the amount                                
suffered as well as court costs and attorney fees from persons who                                  
make a misrepresentation or false claim against the state or a                                      
municipality.                                                                                       
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2001-02-26                     Senate Journal                      Page 0503
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, or to permanent fund dividend applications. These                                
programs have specific authority elsewhere in statute providing for the                             
prosecution of false claims.                                                                        
                                                                                                    
The bill requires the attorney general to investigate misrepresentations                            
and false claims against the state and requires the prosecuting                                     
authority for a municipality to investigate misrepresentations and false                            
claims against the municipality. It 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.                                                 
                                                                                                    
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 and fraudulent claims.                                                       
                                                                                                    
       Sincerely,                                                                                   
       /s/                                                                                          
       Tony Knowles                                                                                 
       Governor