§ 15C.02 — Liability for Certain Acts
Plain-Language Summary
This section creates civil liability for seven categories of fraudulent conduct involving state or local government funds. The basic penalty is the federal False Claims Act civil penalty amount plus three times actual damages. The penalty may be reduced to two times damages if the violator voluntarily discloses the fraud within 30 days, cooperates fully, and comes forward before any investigation begins. Negligence, inadvertence, or mistake does not create liability.
15C.02 LIABILITY FOR CERTAIN ACTS.
(a) A person who commits any act described in clauses (1) to (7) is liable to the state or the political subdivision for a civil penalty in the amounts set forth in the federal False Claims Act, United States Code, title 31, section 3729, and as modified by the federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, plus three times the amount of damages that the state or the political subdivision sustains because of the act of that person, except as otherwise provided in paragraph (b):
(1) knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
(2) knowingly makes or uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;
(3) knowingly conspires to commit a violation of clause (1), (2), (4), (5), (6), or (7);
(4) has possession, custody, or control of property or money used, or to be used, by the state or a political subdivision and knowingly delivers or causes to be delivered less than all of that money or property;
(5) is authorized to make or deliver a document certifying receipt for money or property used, or to be used, by the state or a political subdivision and, intending to defraud the state or a political subdivision, makes or delivers the receipt without completely knowing that the information on the receipt is true;
(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the state or a political subdivision who lawfully may not sell or pledge the property; or
(7) knowingly makes or uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the state or a political subdivision, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the state or a political subdivision.
(b) Notwithstanding paragraph (a), the court may assess not less than two times the amount of damages that the state or the political subdivision sustains because of the act of the person if:
(1) the person committing a violation under paragraph (a) furnished an officer or employee of the state or the political subdivision responsible for investigating the false or fraudulent claim violation with all information known to the person about the violation within 30 days after the date on which the person first obtained the information;
(2) the person fully cooperated with any investigation by the state or the political subdivision of the violation; and
(3) at the time the person furnished the state or the political subdivision with information about the violation, no criminal prosecution, civil action, or administrative action had been commenced under this chapter with respect to the violation and the person did not have actual knowledge of the existence of an investigation into the violation.
(c) A person violating this section is also liable to the state or the political subdivision for the costs of a civil action brought to recover any penalty or damages.
(d) A person is not liable under this section for mere negligence, inadvertence, or mistake with respect to activities involving a false or fraudulent claim.
History:
2009 c 101 art 2 s 25; 2013 c 16 s 2; 1Sp2019 c 9 art 2 s 5
History: History: 2009 c 101 art 2 s 25; 2013 c 16 s 2; 1Sp2019 c 9 art 2 s 5