SB 5439-S.E - DIGEST

(AS OF SENATE 2ND READING 3/17/99)

     Declares that a person commits a "wrongful act" under this act if each of the following occurs:  (1) The person: (a) makes a false representation of a material, existing fact; (b) knows that the representation is false or has a reckless disregard to its truth; and (c) intends that the representation should be acted on by the person to whom it is made; and

     (2) the person to whom the representation is made:  (a) is ignorant of the falsity of the representation; (b) justifiably relies on the truth of the representation; and (c) incurs consequent damages.

     Provides that a person who commits a wrongful act against a governmental entity is liable to the governmental entity for:  (1) A civil penalty of not less than five thousand dollars and not more than ten thousand dollars; and

     (2) an amount equal to three times the damages sustained by the governmental entity as a result of the wrongful act.