CSHB 425(JUD): "An Act relating to civil liability to the state or a municipality for certain acts involving false claims, misrepresentation, false records, false statements, the failure to disclose a false claim, the purchase of public property from an unlawful source, or the receipt of a pledge of public property from an unlawful source; relating to criminal proceedings charging false statements or fraud; relating to misrepresented or fraudulent contract claims under the State Procurement Code; relating to the recovery of the property of a municipality, school district, or the state; and providing for an effective date."
00CS FOR HOUSE BILL NO. 425(JUD) 01 "An Act relating to civil liability to the state or a municipality for certain acts 02 involving false claims, misrepresentation, false records, false statements, the failure 03 to disclose a false claim, the purchase of public property from an unlawful 04 source, or the receipt of a pledge of public property from an unlawful source; 05 relating to criminal proceedings charging false statements or fraud; relating to 06 misrepresented or fraudulent contract claims under the State Procurement Code; 07 relating to the recovery of the property of a municipality, school district, or 08 the state; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 36.30.687(a) is amended to read: 11 (a) A person who makes or uses in support of a contract claim under this 12 chapter, a misrepresentation, or who practices or attempts to practice a fraud, at any 13 stage of proceedings relating to a procurement or contract controversy under this 14 chapter
01 (1) forfeits all claims relating to that procurement or contract; and 02 (2) is liable to the state for a false claim as provided in AS 37.10.090 03 [REIMBURSEMENT OF ALL SUMS PAID ON THE CLAIM, FOR ALL COSTS 04 ATTRIBUTABLE TO REVIEW OF THE CLAIM, AND FOR A CIVIL PENALTY 05 EQUAL TO THE AMOUNT BY WHICH THE CLAIM IS MISREPRESENTED]. 06 * Sec. 2. AS 37.10.090 is repealed and reenacted to read: 07 Sec. 37.10.090. False claims and misrepresentation against state or 08 municipality. (a) A person is civilly liable to the state or a municipality in 09 accordance with the provisions of this section if the person commits any of the 10 following acts: 11 (1) knowingly presents or causes to be presented to an officer or 12 employee of the state or of a municipality, a false claim for payment or approval by 13 the state or municipality; 14 (2) knowingly makes, uses, or causes to be made or used a false record 15 or statement to get a false claim paid or approved by the state or a municipality; 16 (3) conspires to defraud the state or a municipality by getting a false 17 claim allowed or paid by the state or municipality; 18 (4) has possession, custody, or control of public property or money 19 used or to be used by the state or a municipality and knowingly delivers or causes to 20 be delivered less money or property than the amount for which the person receives a 21 document certifying receipt; 22 (5) is authorized to make or deliver a document certifying receipt of 23 property used or to be used by the state or a municipality and knowingly makes or 24 delivers a receipt that falsely represents the property used or to be used; 25 (6) knowingly buys, or receives as a pledge of an obligation or a debt, 26 state or municipal property from a person who lawfully may not sell or pledge the 27 property; 28 (7) knowingly makes, uses, or causes to be made or used a false record 29 or statement to conceal, avoid, or decrease an obligation to pay or transmit money or 30 property to the state or a municipality; or 31 (8) is a beneficiary of an inadvertent submission of a false claim to the
01 state or a municipality, subsequently discovers the falsity of the claim, and fails to 02 disclose the false claim to the state or the municipality within a reasonable time after 03 discovery of the false claim. 04 (b) If civil liability is found under (a) of this section, the person is liable to the 05 state or municipality for the following: 06 (1) except as provided in (c) of this section, three times the amount of 07 the damages that the state or municipality sustains because of the act of that person; 08 (2) a civil penalty of up to $10,000 for each act for which liability is 09 found under (a) of this section; and 10 (3) attorney fees and costs awarded in accordance with Alaska Rules 11 of Civil Procedure to recover amounts under (1) or (2) of this subsection. 12 (c) The court may reduce the amount of damages under (b)(1) of this section 13 to an amount not less than two times the amount of the damages sustained and may 14 waive entirely the civil penalties under (b)(2) of this section if the standards set out 15 in this subsection are met. To be eligible for reduction or waiver, the person who 16 committed the act for which the person is civilly liable under (a) of this section must 17 prove, and the court must find, that 18 (1) the person furnished officials of the state or of the municipality 19 responsible for investigating acts listed under (a) of this section with all information 20 known to that person about the act within 30 days after the date on which the person 21 first obtained the information; 22 (2) the person fully cooperated with any state or federal investigation 23 of the act; and 24 (3) at the time the person furnished the state or the municipality with 25 information about the act, a criminal prosecution, civil action, or administrative action 26 had not started with respect to the act, and the person did not have actual knowledge 27 of the existence of an investigation into the act. 28 (d) Liability under this section is joint and several for an act committed by two 29 or more persons. 30 (e) Except as provided in (g) of this section, the remedies provided under this 31 section are in addition to any other remedies provided by law.
01 (f) This section does not apply to an act for which a person is civilly liable 02 under (a) of this section if the act involves an amount or value of less than $500. 03 (g) This section does not apply to claims, records, or statements made to 04 present or support a claim under 05 (1) AS 23.20 (Alaska Employment Security Act); 06 (2) AS 23.30 (Alaska Workers' Compensation Act); 07 (3) AS 43 (Revenue and Taxation); 08 (4) AS 47.25 (Public Assistance); or 09 (5) AS 47.27 (Alaska Temporary Assistance Program). 10 * Sec. 3. AS 37.10 is amended by adding new sections to read: 11 Sec. 37.10.092. Limitation of actions; standard of proof. (a) A civil action 12 under AS 37.10.090 may not be filed more than six years after the date of discovery 13 by the official of the state or municipality charged with responsibility to act in the 14 circumstances of the basis for the action or, in any event, no more than 10 years after 15 the date on which the act for which the civil action is filed was committed. 16 (b) In an action brought under AS 37.10.090, the state or a municipality is 17 required to prove all essential elements of the cause of action, including damages, by 18 a preponderance of the evidence. 19 (c) A guilty verdict rendered in a criminal proceeding charging false statements 20 or fraud, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, 21 estops the defendant from denying the essential elements of the offense in a civil 22 action brought under AS 37.10.090 that involves the same activity as in the criminal 23 proceeding. This subsection does not apply to a guilty verdict upon a plea of nolo 24 contendere made before July 1, 2000. 25 Sec. 37.10.094. Action by attorney general or municipal attorney. (a) The 26 attorney general shall investigate acts for which a person may be civilly liable under 27 AS 37.10.090 involving state money or property. If the attorney general finds that a 28 person has committed or is committing an act for which civil liability is imposed under 29 AS 37.10.090, the attorney general may bring a civil action under AS 37.10.090 30 against that person. If the attorney general brings a civil action on a claim involving 31 municipal money or property as well as state money or property, the attorney general
01 shall, on the same date that the complaint is filed in this action, provide a copy of the 02 complaint to the appropriate prosecuting authority of the municipality. 03 (b) The prosecuting authority of a municipality shall investigate acts for which 04 a person may be civilly liable under AS 37.10.090 involving municipal money or 05 property. If the prosecuting authority of the municipality finds that a person has 06 committed or is committing an act for which the person is civilly liable under 07 AS 37.10.090, the prosecuting authority may bring a civil action against that person. 08 The prosecuting authority of a municipality may bring a civil action on behalf of the 09 state on a claim involving state money or property and municipal money or property, 10 and shall, on the date that the complaint is filed in the action, provide a copy of the 11 complaint to the attorney general. Within 60 days after receiving the complaint, the 12 attorney general shall do one of the following: 13 (1) notify the court that the attorney general intends to prosecute the 14 action on behalf of the state and municipality, in which case the attorney general shall 15 assume primary responsibility for prosecuting the action; or 16 (2) notify the court that the attorney general declines to prosecute the 17 action, in which case the prosecuting authority of the municipality may continue to 18 prosecute the action; notwithstanding AS 37.10.090, if the attorney general declines 19 to prosecute the action, the attorney general may authorize the prosecuting authority 20 of the municipality to assume lead responsibility for prosecuting the action for any 21 state money or property remaining in the action. 22 * Sec. 4. AS 36.30.687(c) and AS 37.10.100 are repealed. 23 * Sec. 5. This Act takes effect July 1, 2000.