AB 1270 — False Claims Act.

Summary

Existing law, the False Claims Act, provides that any person who commits specified acts, including, but not limited to, knowingly presenting a false or fraudulent claim for payment or approval or knowingly making or using a false record or statement material to a false or fraudulent claim, is liable to the state or to the political subdivision for 3 times the amount of damages that the state or political subdivision sustained because of the act and for the costs of a civil action brought to recover any penalties or damages, and is subject to a civil penalty. That act requires the Attorney General or the prosecuting authority of a political subdivision to diligently investigate violations of those specific acts involving state funds or political subdivision funds, respectively, and authorizes the Attorney General, the prosecuting attorney, or a qui tam plaintiff to bring a civil action against a person who commits those acts. This bill, with respect to whether a false record or statement is material, would require that the materiality test focus on the potential effect of the false record or statement when it is made, not on the actual effect of the false statement when it is discovered. This bill would specify that the amount of damages include consequential damages. This bill would state that these changes are declaratory of existing law. The False Claims Act does not apply to claims, records, or statements made under the Revenue and Taxation Code. This bill would apply the False Claims Act to apply to claims, records, or statements made under the Revenue and Taxation Code if specified conditions are met, including if damages pleaded in an action under the act exceed $200,000 and that the claim, record, or statement was made on or after January 1, 2020. This bill would require the Attorney General or prosecuting authority, as described, to consult with the taxing authorities to whom the claim was submitted prior to filing or intervening in any action under the act that is based on the filing of false claims, records, or statements made under the Revenue and Taxation Code. The bill would authorize the Attorney General or the prosecuting authority, but not the qui tam plaintiff, to obtain otherwise confidential records relating to taxes, fees, or other obligations under the Revenue and Taxation Code. The bill would prohibit the disclosure of federal tax information to the Attorney General or the prosecuting authority without authorization from the Internal Revenue Service. The bill would require that any such information obtained be kept confidential, except as necessary to investigate and prosecute violations of these provisions. Under the False Claims Act, an employee, contractor, or agent who is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of their employment for engaging in lawful acts, as specified, or other efforts to stop violations of the act, is entitled to all relief necessary to make them whole. This bill would specify that the relief described above applies to any current or former employee, contractor, or agent. The bill would extend this relief if these parties are otherwise harmed or penalized by an employer. This bill would define lawful acts to include specified acts that may violate a contract, employment term, or duty owed to an employer or contractor. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.

Bill Text

• Amended 08/13/19 - Amended Senate Current pdf August 13, 2019
• Amended 06/24/19 - Amended Senate pdf June 24, 2019
• Amended 04/10/19 - Amended Assembly pdf April 10, 2019
• Introduced 02/21/19 - Introduced pdf February 21, 2019
• AB1270 View text html

Action History

1. August 30, 2019

   In committee: Held under submission.

2. August 19, 2019

   In committee: Referred to APPR. suspense file.

3. August 13, 2019

   Read second time and amended. Re-referred to Com. on APPR.

4. August 12, 2019

   From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (July 10).

5. July 03, 2019

   From committee: Do pass and re-refer to Com. on GOV. & F. (Ayes 7. Noes 2.) (July 2). Re-referred to Com. on GOV. & F.

6. June 24, 2019

   From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

7. June 06, 2019

   Referred to Coms. on JUD. and GOV. & F.

8. May 24, 2019

   In Senate. Read first time. To Com. on RLS. for assignment.

9. May 23, 2019

   Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 19. Page 1883.)

10. May 20, 2019

    Read second time. Ordered to third reading.

11. May 16, 2019

    From committee: Do pass. (Ayes 13. Noes 5.) (May 16).

12. April 24, 2019

    In committee: Set, first hearing. Referred to APPR. suspense file.

13. April 11, 2019

    Re-referred to Com. on APPR.

14. April 10, 2019

    Read second time and amended.

15. April 09, 2019

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (April 9).

16. March 11, 2019

    Referred to Com. on JUD.

17. February 22, 2019

    From printer. May be heard in committee March 24.

18. February 21, 2019

    Read first time. To print.

Sponsors

• Mark Stone · Primary

Votes

Subjects