HB 5951 — WHISTLEBLOWER-FALSE CLAIMS ACT

HB5951 EngrossedEnrolled LRB096 15489 AJO 35974 b AN ACT concerning civil law.

A contractor or subcontractor that makes a false statement material to any given certification required under this Article is, in addition to any other penalties or consequences prescribed by law, subject to liability under the HB5951 EngrossedEnrolled - 2 - LRB096 15489 AJO 35974 b Illinois False Claims Whistleblower Reward and Protection Act for submission of a false claim.

(c) "Investigation" means any inquiry conducted by any investigator for the purpose of ascertaining whether any person HB5951 EngrossedEnrolled - 3 - LRB096 15489 AJO 35974 b is or has been engaged in any violation of this Act.

and HB5951 EngrossedEnrolled - 4 - LRB096 15489 AJO 35974 b (3) any index or other manner of access to any item listed in paragraph (1).

(D) (4) has possession, custody, or control of property or money used, or to be used, by the State and knowingly , intending to defraud the State or willfully to conceal the property, delivers, or causes to be delivered, less than all the money or property than the amount for which the person receives a certificate or HB5951 EngrossedEnrolled - 5 - LRB096 15489 AJO 35974 b receipt;

or (9) knowingly retaliates against an employee who has disclosed information in a court, an administrative hearing, before a legislative commission or committee, or in another proceeding and discloses information, if the HB5951 EngrossedEnrolled - 6 - LRB096 15489 AJO 35974 b employee has reasonable cause to believe that the information discloses a violation of State or federal law, rule, or regulation, is liable to the State for a civil penalty of not less than $5,500 and not more than $11,000, plus 3 times the amount of damages which the State sustains because of the act of that person.

HB5951 EngrossedEnrolled - 7 - LRB096 15489 AJO 35974 b (2) The term (c) Claim defined.

A claim also includes a request or demand for money damages or injunctive relief on behalf of an employee who has suffered an HB5951 EngrossedEnrolled - 8 - LRB096 15489 AJO 35974 b adverse employment action taken in violation of paragraphs (8) or (9) of subsection (a).

The Attorney General or the Department of State Police shall diligently investigate a civil violation under Section 3, except for civil violations under Section 3 that relate to and adversely affect primarily the system of State colleges and universities, any school district, any public community college district, any municipality, municipal corporations, units of local government, or any combination of the above under an intergovernmental agreement HB5951 EngrossedEnrolled - 9 - LRB096 15489 AJO 35974 b that includes provisions for a governing board of the agency created by the agreement.

The HB5951 EngrossedEnrolled - 10 - LRB096 15489 AJO 35974 b complaint shall be filed in camera, shall remain under seal for at least 60 days, and shall not be served on the defendant until the court so orders.

(1) If the State proceeds with the action, it shall HB5951 EngrossedEnrolled - 11 - LRB096 15489 AJO 35974 b have the primary responsibility for prosecuting the action, and shall not be bound by an act of the person bringing the action.

(i) limiting the number of witnesses the HB5951 EngrossedEnrolled - 12 - LRB096 15489 AJO 35974 b person may call:

(4) Whether or not the State proceeds with the action, upon a showing by the State that certain actions of HB5951 EngrossedEnrolled - 13 - LRB096 15489 AJO 35974 b discovery by the person initiating the action would interfere with the State's investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay such discovery for a period of not more than 60 days.

For purposes of the preceding sentence, a finding or conclusion is final if it has been finally determined on appeal to the appropriate court, if all time for filing such an appeal with respect to the finding or conclusion has expired, or if the finding or HB5951 EngrossedEnrolled - 14 - LRB096 15489 AJO 35974 b conclusion is not subject to judicial review.

The State shall also receive an amount for reasonable expenses which the court HB5951 EngrossedEnrolled - 15 - LRB096 15489 AJO 35974 b finds to have been necessarily incurred by the Attorney General, including reasonable attorneys' fees and costs, and the amount received shall be deposited in the Whistleblower Reward and Protection Fund created under this Act.

The amount shall be not less than 25% and not more than 30% HB5951 EngrossedEnrolled - 16 - LRB096 15489 AJO 35974 b of the proceeds of the action or settlement and shall be paid out of such proceeds.

Such dismissal HB5951 EngrossedEnrolled - 17 - LRB096 15489 AJO 35974 b shall not prejudice the right of the State to continue the action, represented by the Attorney General.

directors of departments established under the Civil Administrative Code of Illinois, the Adjutant General, the Assistant Adjutant General, the Director of the State Emergency Services and Disaster HB5951 EngrossedEnrolled - 18 - LRB096 15489 AJO 35974 b Agency, members of the boards and commissions, and all other positions appointed by the Governor by and with the consent of the Senate.

HB5951 EngrossedEnrolled - 19 - LRB096 15489 AJO 35974 b (g) Relief from retaliatory actions.

HB5951 EngrossedEnrolled - 20 - LRB096 15489 AJO 35974 b (Source:

For statute of limitations purposes, any such State pleading shall relate back to the filing date of the complaint of the person who HB5951 EngrossedEnrolled - 21 - LRB096 15489 AJO 35974 b originally brought the action, to the extent that the claim of the State arises out of the conduct, transactions, or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.

Whenever the Attorney General, or a designee (for purposes of this Section), has reason to believe that any person may be in possession, custody, or control of any documentary material or information relevant to an investigation, the Attorney HB5951 EngrossedEnrolled - 22 - LRB096 15489 AJO 35974 b General, or a designee, may, before commencing a civil proceeding under this Act or making an election under paragraph (4) of subsection (b) of Section 4, issue in writing and cause to be served upon such person, a subpoena requiring such person:

Any information obtained by the Attorney General or a designee under this Section may be shared with any qui tam relator if the Attorney General HB5951 EngrossedEnrolled - 23 - LRB096 15489 AJO 35974 b or designee determines it necessary as part of any False Claims Act investigation.

(C) Shall state the date, place, and time at which the person is required to appear, produce written HB5951 EngrossedEnrolled - 24 - LRB096 15489 AJO 35974 b answers to interrogatories, produce documentary material or give oral testimony.

(A) the standards applicable to subpoenas or subpoenas duces tecum issued by a court of this State HB5951 EngrossedEnrolled - 25 - LRB096 15489 AJO 35974 b to aid in a grand jury investigation;

Service of any subpoena issued under subsection (a) or of any petition filed under subsection (j) may be made upon a partnership, corporation, HB5951 EngrossedEnrolled - 26 - LRB096 15489 AJO 35974 b association, or other legal entity by:

A verified return by the individual serving any subpoena issued under subsection (a) or any HB5951 EngrossedEnrolled - 27 - LRB096 15489 AJO 35974 b petition filed under subsection (j) setting forth the manner of such service shall be proof of such service.

Any person upon whom any subpoena for the production of documentary material has been served under this Section shall make such material available for inspection and copying to the Attorney General at the place designated in the subpoena, or at such HB5951 EngrossedEnrolled - 28 - LRB096 15489 AJO 35974 b other place as the Attorney General and the person thereafter may agree and prescribe in writing, or as the court may direct under subsection (j)(1).

To the extent that any information is not furnished, the information shall be identified and reasons set forth with particularity regarding the reasons why HB5951 EngrossedEnrolled - 29 - LRB096 15489 AJO 35974 b the information was not furnished.

The investigator conducting the examination shall exclude from the place where the examination is held all persons except the person giving the testimony, the attorney for and any other representative of the person giving the testimony, the attorney for the State, any person who may be agreed upon by the attorney for the State and the person giving the HB5951 EngrossedEnrolled - 30 - LRB096 15489 AJO 35974 b testimony, the officer before whom the testimony is to be taken, and any stenographer taking such testimony.

If such person refuses to HB5951 EngrossedEnrolled - 31 - LRB096 15489 AJO 35974 b answer any question, a petition may be filed in circuit court under subsection (j)(1) for an order compelling such person to answer such question.

HB5951 EngrossedEnrolled - 32 - LRB096 15489 AJO 35974 b (3) Conditions for return of material.

Whenever any person fails to comply with any subpoena issued under subsection (a), or whenever satisfactory copying or reproduction of any material requested in such demand cannot be done and such person refuses to surrender such material, the Attorney General may file, in the circuit court of any county in which such person resides, is found, or transacts HB5951 EngrossedEnrolled - 33 - LRB096 15489 AJO 35974 b business, or the circuit court of the county in which an action filed pursuant to Section 4 of this Act is pending if the action relates to the subject matter of the subpoena and serve upon such person a petition for an order of such court for the enforcement of the subpoena.

(B) The petition shall specify each ground upon which the petitioner relies in seeking relief under HB5951 EngrossedEnrolled - 34 - LRB096 15489 AJO 35974 b subparagraph (A), and may be based upon any failure of the subpoena to comply with the provisions of this Section or upon any constitutional or other legal right or privilege of such person.

Any final order HB5951 EngrossedEnrolled - 35 - LRB096 15489 AJO 35974 b so entered shall be subject to appeal in the same manner as appeals of other final orders in civil matters.

The remaining two-thirds of the monies in the Fund shall be used for payment of awards to Qui Tam HB5951 EngrossedEnrolled - 36 - LRB096 15489 AJO 35974 b plaintiffs, for attorneys' fees and expenses, and as otherwise specified in this Act, with any remainder to the General Revenue Fund.