Senate Bill sb2312c1

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    Florida Senate - 2007                           CS for SB 2312

    By the Committee on Judiciary; and Senator Oelrich





    590-2352-07

  1                      A bill to be entitled

  2         An act relating to false claims; amending s.

  3         68.081, F.S.; providing that the purpose of the

  4         Florida False Claims Act is to prevent the

  5         state from paying false and fraudulent claims;

  6         amending s. 68.082, F.S.; redefining the term

  7         "claim" to include claims filed electronically;

  8         providing that a person is liable for a civil

  9         penalty if he or she files a false or

10         fraudulent claim; amending s. 68.083, F.S.;

11         reducing time limits for false claim

12         proceedings; amending s. 68.084, F.S.; revising

13         the period in which a stay to conduct discovery

14         may be granted; amending s. 68.085, F.S.;

15         providing an award to the agency injured by the

16         false or fraudulent claim; amending s. 68.089,

17         F.S.; revising the time periods in which a

18         civil action may be filed under the False

19         Claims Act; providing an effective date.

20  

21  Be It Enacted by the Legislature of the State of Florida:

22  

23         Section 1.  Subsection (2) of section 68.081, Florida

24  Statutes, is amended to read:

25         68.081  Florida False Claims Act; short title;

26  purpose.--

27         (2)  The purpose of the Florida False Claims Act is to

28  deter persons from knowingly causing or assisting in causing

29  state government to pay claims that are false or fraudulent,

30  and to provide remedies for obtaining treble damages and civil

31  

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    Florida Senate - 2007                           CS for SB 2312
    590-2352-07




 1  penalties for state government when money is obtained from

 2  state government by reason of a false or fraudulent claim.

 3         Section 2.  Paragraph (b) of subsection (1) and

 4  subsection (2) of section 68.082, Florida Statutes, are

 5  amended to read:

 6         68.082  False claims against the state; definitions;

 7  liability.--

 8         (1)  As used in this section, the term:

 9         (b)  "Claim" includes any written or electronically

10  submitted request or demand, under a contract or otherwise,

11  for money, property, or services, which is made to any

12  employee, officer, or agent of an agency, or to any

13  contractor, grantee, or other recipient if the agency provides

14  any portion of the money or property requested or demanded, or

15  if the agency will reimburse the contractor, grantee, or other

16  recipient for any portion of the money or property requested

17  or demanded.

18         (2)  Any person who:

19         (a)  Knowingly presents or causes to be presented to an

20  officer or employee of an agency a false or fraudulent claim

21  for payment or approval;

22         (b)  Knowingly makes, uses, or causes to be made or

23  used a false record or statement to get a false or fraudulent

24  claim paid or approved by an agency;

25         (c)  Conspires to submit a false or fraudulent claim to

26  an agency or to deceive an agency for the purpose of getting a

27  false or fraudulent claim allowed or paid;

28         (d)  Has possession, custody, or control of property or

29  money used or to be used by an agency and, intending to

30  deceive the agency or knowingly conceal the property, delivers

31  

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    Florida Senate - 2007                           CS for SB 2312
    590-2352-07




 1  or causes to be delivered less property than the amount for

 2  which the person receives a certificate or receipt;

 3         (e)  Is authorized to make or deliver a document

 4  certifying receipt of property used or to be used by an agency

 5  and, intending to deceive the agency, makes or delivers the

 6  receipt without knowing that the information on the receipt is

 7  true;

 8         (f)  Knowingly buys or receives, as a pledge of an

 9  obligation or a debt, public property from an officer or

10  employee of an agency who may not sell or pledge the property

11  lawfully; or

12         (g)  Knowingly makes, uses, or causes to be made or

13  used a false record or statement to conceal, avoid, or

14  decrease an obligation to pay or transmit money or property to

15  an agency,

16  

17  is liable to the state for a civil penalty of not less than

18  $5,500 $5,000 and not more than $11,000 $10,000 and for treble

19  the amount of damages the agency sustains because of the act

20  or omission of that person.

21         Section 3.  Subsections (3) and (6) of section 68.083,

22  Florida Statutes, are amended to read:

23         68.083  Civil actions for false claims.--

24         (3)  The complaint shall be identified on its face as a

25  qui tam action and shall be filed in the circuit court of the

26  Second Judicial Circuit, in and for Leon County. Immediately

27  upon the filing of the complaint, a copy of the complaint and

28  written disclosure of substantially all material evidence and

29  information the person possesses shall be served on the

30  Attorney General, as head of the department, and on the Chief

31  Financial Officer, as head of the Department of Financial

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    Florida Senate - 2007                           CS for SB 2312
    590-2352-07




 1  Services, by registered mail, return receipt requested. The

 2  department, or the Department of Financial Services under the

 3  circumstances specified in subsection (4), may elect to

 4  intervene and proceed with the action, on behalf of the state,

 5  within 60 90 days after it receives both the complaint and the

 6  material evidence and information.

 7         (6)  Before the expiration of the 60-day 90-day period

 8  or any extensions obtained under subsection (5), the

 9  department shall:

10         (a)  Proceed with the action, in which case the action

11  is conducted by the department on behalf of the state; or

12         (b)  Notify the court that it declines to take over the

13  action, in which case the person bringing the action has the

14  right to conduct the action.

15         Section 4.  Subsection (4) of section 68.084, Florida

16  Statutes, is amended to read:

17         68.084  Rights of the parties in civil actions.--

18         (4)  Whether or not the department proceeds with the

19  action, upon a showing by the department that certain actions

20  of discovery by the person initiating the action would

21  interfere with an investigation by state government or the

22  prosecution of a criminal or civil matter arising out of the

23  same facts, the court may stay such discovery for a period of

24  not more than 60 90 days. Such a showing shall be conducted in

25  camera. The court may extend the 60-day 90-day period upon a

26  further showing in camera by the department that the criminal

27  or civil investigation or proceeding has been pursued with

28  reasonable diligence and any proposed discovery in the civil

29  action will interfere with an ongoing criminal or civil

30  investigation or proceeding.

31  

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    Florida Senate - 2007                           CS for SB 2312
    590-2352-07




 1         Section 5.  Subsection (4) of section 68.085, Florida

 2  Statutes, is amended to read:

 3         68.085  Awards to plaintiffs bringing action.--

 4         (4)  Following any distributions under subsection (1),

 5  subsection (2), or subsection (3), the agency injured by the

 6  submission of a false or fraudulent claim shall be awarded an

 7  amount not to exceed its compensatory damages. Any remaining

 8  proceeds, including civil penalties awarded under s. 68.082,

 9  shall be deposited in the General Revenue Fund.

10         Section 6.  Section 68.089, Florida Statutes, is

11  amended to read:

12         68.089  Limitation of actions.--A civil action under

13  this act may not be brought:

14         (1)  More than 6 5 years after the date on which the

15  violation of s. 68.082 is committed; or

16         (2)  More than 3 2 years after the date when facts

17  material to the right of action are known or reasonably should

18  have been known by the state official charged with

19  responsibility to act in the circumstances, but in no event

20  more than 10 7 years after the date on which the violation is

21  committed, whichever occurs last.

22         Section 7.  This act shall take effect July 1, 2007.

23  

24          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
25                             SB 2312

26                                 

27  Deletes a provision of the bill which would have automatically
    sealed a qui tam, false-claims complaint.
28  

29  

30  

31  

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