HOUSE BILL ANALYSIS

                   HB 2845

Title:  An act relating to false claims against the government.

Brief Description:  Enacting the Washington state false claims act.

Sponsors:  Representatives Constantine, Clements, Dickerson, Ogden and Anderson.

House Select Committee on Vendor Contracting & Services

Bill Analysis Prepared By:  Josh Weiss (786-7292)

Background:  With the exception of those remedies found under unconsolidated subject-matter oriented civil fraud laws, and the common law of torts, state law does not currently provide a civil remedy for false claims made against the government.  In addition, there are no provisions allowing individuals to bring a civil false claim action on behalf of the government. 

The federal government passed a false claims act in 1863.  Since its amendment in 1986, it has been used extensively to recover significant amounts of federal money.

Summary:  Mirroring the federal false claims act, HB 2845 would encourage the reporting, investigation, and prosecution of false claims made against state government.  Any person who knowingly causes a false claim to be presented to a governmental entity which causes over $1000 worth of damage (a Awrongful act@), may be liable for a civil penalty of $5000 to $10,000, treble damages, and costs.  A false claim is any request or demand for money or property made to the government, whether the state or a local political subdivision, that contains or is based upon a materially incorrect fact, statement, representation, or record. 

Authorized attorneys of the state are required to investigate wrongful acts, and may bring a civil suit where a person committed a wrongful act.  An individual may bring a suit on behalf of the government, and is allowed to recover between 15 to 30 percent of a court award.  A governmental entity may elect to intervene in a suit brought by an individual, but is not required to do so.  An individual who initiates a civil action, or aids in an investigation of a false claim is given Awhistleblower@ protection as under RCW 49.60.

Fiscal Note:  Requested January 28, 1998.

Effective Date:  Ninety days after adjournment of session in which bill is passed.