2SSB 5458 -
By Senator Hargrove
NOT CONSIDERED 05/25/2011
Beginning on page 16, line 29, strike all of section 14 and insert the following:
"NEW SECTION. Sec. 14 (1)(a) Subject to (b) of this subsection,
if the attorney general proceeds with a qui tam action, the relator
must receive at least fifteen percent but not more than twenty-five
percent of the proceeds of the action or settlement of the claim,
depending upon the extent to which the relator substantially
contributed to the prosecution of the action.
(b) Where the action is one which the court finds to be based
primarily on disclosures of specific information, other than
information provided by the relator, relating to allegations or
transactions in a criminal, civil, or administrative hearing, in a
congressional, administrative, or general accounting office report,
hearing, audit, or investigation, or from the news media, the court may
award an amount it considers appropriate, but in no case more than ten
percent of the proceeds, taking into account the significance of the
information and the role of the relator in advancing the case to
litigation.
(c) Any payment to a relator under (a) or (b) of this subsection
must be made from the proceeds. The relator must also receive an
amount for reasonable expenses which the court finds to have been
necessarily incurred, plus reasonable attorneys' fees and costs.
Additionally, the attorney general must receive reasonable attorneys'
fees and costs. All expenses, fees, and costs must be awarded against
the defendant.
(2) If the attorney general does not proceed with a qui tam action,
the relator shall receive an amount which the court decides is
reasonable for collecting the civil penalty and damages. The amount
may not be less than twenty-five percent and not more than thirty
percent of the proceeds of the action or settlement and must be paid
out of the proceeds. The relator must also receive an amount for
reasonable expenses, which the court finds to have been necessarily
incurred, plus reasonable attorneys' fees and costs. All expenses,
fees, and costs must be awarded against the defendant.
(3) Whether or not the attorney general proceeds with the qui tam
action, if the court finds that the action was brought by a person who
planned and initiated the violation of section 9 of this act upon which
the action was brought, then the court may, to the extent the court
considers appropriate, reduce the share of the proceeds of the action
which the person would otherwise receive under subsection (1) or (2) of
this section, taking into account the role of that person in advancing
the case to litigation and any relevant circumstances pertaining to the
violation. If the person bringing the action is convicted of criminal
conduct arising from his or her role in the violation of section 9 of
this act, that person must be dismissed from the civil action and may
not receive any share of the proceeds of the action. The dismissal may
not prejudice the right of the United States to continue the action,
represented by the department of justice.
(4) If the attorney general does not proceed with the qui tam
action and the relator conducts the action, the court may award to the
defendant reasonable attorneys' fees, costs, and expenses if the
defendant prevails in the action. Any fees, costs, and expenses
awarded by the court under this subsection must be awarded against the
relator.
(5) The attorney general and a government entity are not liable for
expenses which a relator incurs in bringing an action under this
chapter.
(6) Any funds recovered that remain after calculation and
distribution under subsections (1) through (3) of this section must be
distributed and deposited as follows: Actual damages must be returned
to the government entity to which the false claim or claims were
submitted and the remainder to the medicaid fraud penalty account
established in section 3 of this act."
EFFECT: Provides that a relator who conducts an action without participation of the attorney general may be responsible for the defendant's reasonable attorneys' fees, costs, and expenses if the defendant prevails.