2012 -- S 2659

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LC01310

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO COURTS AND CIVIL PROCEDURE - THE STATE FALSE CLAIMS

     Introduced By: Senators Goodwin, Picard, Ruggerio, Metts, and Ciccone

     Date Introduced: March 01, 2012

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 9-1.1-2, 9-1.1-4, 9-1.1-6 and 9-1.1-8 of the General Laws in

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Chapter 9-1.1 entitled "The State False Claim Act" are hereby amended to read as follows:

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     9-1.1-2. Definitions. -- As used in this chapter:

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      (a) "State" means the state of Rhode Island; any agency of state government; and any

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political subdivision meaning any city, town, county or other governmental entity authorized or

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created by state law, including public corporations and authorities.

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      (b) "Guard" means the Rhode Island National Guard.

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      (c) "Investigation" means any inquiry conducted by any investigator for the purpose of

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ascertaining whether any person is or has been engaged in any violation of this chapter.

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      (d) "Investigator" means a person who is charged by the Rhode Island attorney general, a

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solicitor, or his or her designee with the duty of conducting any investigation under this act, or

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any officer or employee of the State acting under the direction and supervision of the department

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of attorney general.

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      (e) "Documentary material" includes the original or any copy of any book, record, report,

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memorandum, paper, communication, tabulation, chart, or other document, or data compilations

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stored in or accessible through computer or other information retrieval systems, together with

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instructions and all other materials necessary to use or interpret such data compilations, and any

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product of discovery.

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      (f) "Custodian" means the custodian, or any deputy custodian, designated by the attorney

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general or a solicitor under section 9-1.1-6 of the Rhode Island general laws.

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      (g) "Product of discovery" includes:

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      (1) The original or duplicate of any deposition, interrogatory, document, thing, result of

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the inspection of land or other property, examination, or admission, which is obtained by any

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method of discovery in any judicial or administrative proceeding of an adversarial nature;

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      (2) Any digest, analysis, selection, compilation, or derivation of any item listed in

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paragraph (1); and

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      (3) Any index or other manner of access to any item listed in paragraph (1).

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     () “Solicitor” means a municipality, acting through its city or town solicitor or other duly

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appointed legal counsel.

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     9-1.1-4. Civil actions for false claims. -- (a) Responsibilities of the attorney general and

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solicitor. - The attorney general or solicitor diligently shall investigate a violation under section 9-

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1.1-3 of this section. If under this section the attorney general or solicitor finds that a person has

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violated or is violating section 9-1.1-3 the attorney general or solicitor may bring a civil action

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under this section against the person.

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      (b) Actions by private persons.

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      (1) A person may bring a civil action for a violation of section 9-1.1-3 for the person and

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for the state. The action shall be brought in the name of the state. The action may be dismissed

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only if the court and the attorney general give written consent to the dismissal and their reasons

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for consenting.

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      (2) A copy of the complaint and written disclosure of substantially all material evidence

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and information the person possesses shall be served on the state upon the attorney general. The

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complaint shall be filed in camera, shall remain under seal for at least sixty (60) days, and shall

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not be served on the defendant until the court so orders. The state may elect to intervene and

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proceed with the action within sixty (60) days after it receives both the complaint and the material

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evidence and information.

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      (3) The state may, for good cause shown, move the court for extensions of the time

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during which the complaint remains under seal under paragraph (2). Any such motions may be

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supported by affidavits or other submissions in camera. The defendant shall not be required to

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respond to any complaint filed under this section until twenty (20) days after the complaint is

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unsealed and served upon the defendant.

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      (4) Before the expiration of the sixty (60) day period or any extensions obtained under

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paragraph (3), the state shall:

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      (A) Proceed with the action, in which case the action shall be conducted by the state; or

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      (B) Notify the court that it declines to take over the action, in which case the person

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bringing the action shall have the right to conduct the action.

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      (5) When a person brings an action under this subsection (b), no person other than the

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state may intervene or bring a related action based on the facts underlying the pending action.

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      (c) Rights of the parties to Qui Tam actions.

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      (1) If the state proceeds with the action, it shall have the primary responsibility for

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prosecuting the action, and shall not be bound by an act of the person bringing the action. Such

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person shall have the right to continue as a party to the action, subject to the limitations set forth

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in paragraph (2).

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      (2) (A) The state may dismiss the action notwithstanding the objections of the person

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initiating the action if the person has been notified by the state of the filing of the motion and the

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court has provided the person with an opportunity for a hearing on the motion.

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      (B) The state may settle the action with the defendant notwithstanding the objections of

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the person initiating the action if the court determines, after a hearing, that the proposed

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settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good

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cause, such hearing may be held in camera.

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      (C) Upon a showing by the state that unrestricted participation during the course of the

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litigation by the person initiating the action would interfere with or unduly delay the state's

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prosecution of the case, or would be repetitious, irrelevant, or for purposes of harassment, the

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court may, in its discretion, impose limitations on the person's participation, such as:

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      (i) Limiting the number of witnesses the person may call:

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      (ii) Limiting the length of the testimony of such witnesses;

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      (iii) Limiting the person's cross-examination of witnesses; or

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      (iv) Otherwise limiting the participation by the person in the litigation.

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      (D) Upon a showing by the defendant that unrestricted participation during the course of

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the litigation by the person initiating the action would be for purposes of harassment or would

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cause the defendant undue burden or unnecessary expense, the court may limit the participation

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by the person in the litigation.

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      (3) If the state elects not to proceed with the action, the person who initiated the action

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shall have the right to conduct the action. If the state so requests, it shall be served with copies of

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all pleadings filed in the action and shall be supplied with copies of all deposition transcripts (at

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the state's expense). When a person proceeds with the action, the court, without limiting the status

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and rights of the person initiating the action, may nevertheless permit the State to intervene at a

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later date upon a showing of good cause.

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      (4) Whether or not the state proceeds with the action, upon a showing by the state that

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certain actions of discovery by the person initiating the action would interfere with the state's

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investigation or prosecution of a criminal or civil matter arising out of the same facts, the court

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may stay such discovery for a period of not more than sixty (60) days. Such a showing shall be

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conducted in camera. The court may extend the sixty (60) day period upon a further showing in

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camera that the state has pursued the criminal or civil investigation or proceedings with

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reasonable diligence and any proposed discovery in the civil action will interfere with the

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ongoing criminal or civil investigation or proceedings.

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      (5) Notwithstanding subsection (b), the state may elect to pursue its claim through any

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alternate remedy available to the state, including any administrative proceeding to determine a

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civil money penalty. If any such alternate remedy is pursued in another proceeding, the person

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initiating the action shall have the same rights in such proceeding as such person would have had

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if the action had continued under this section. Any finding of fact or conclusion of law made in

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such other proceeding that has become final shall be conclusive on all parties to an action under

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this section. For purposes of the preceding sentence, a finding or conclusion is final if it has been

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finally determined on appeal to the appropriate court, if all time for filing such an appeal with

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respect to the finding or conclusion has expired, or if the finding or conclusion is not subject to

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judicial review.

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      (d) Award to Qui Tam plaintiff.

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      (1) If the State proceeds with an action brought by a person under subsection 9-1.1-4(b),

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such person shall, subject to the second sentence of this paragraph, receive at least fifteen percent

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(15%) but not more than twenty-five percent (25%) of the proceeds of the action or settlement of

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the claim, depending upon the extent to which the person substantially contributed to the

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prosecution of the action. Where the action is one which the court finds to be based primarily on

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disclosures of specific information (other than information provided by the person bringing the

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action) relating to allegations or transactions in a criminal, civil, or administrative hearing, in a

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legislative, administrative, or Auditor General's report, hearing, audit, or investigation, or from

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the news media, the court may award such sums as it considers appropriate, but in no case more

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than ten percent (10%) of the proceeds, taking into account the significance of the information

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and the role of the person bringing the action in advancing the case to litigation. Any payment to

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a person under the first or second sentence of this paragraph (1) shall be made from the proceeds.

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Any such person shall also receive an amount for reasonable expenses which the court finds to

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have been necessarily incurred, plus reasonable attorneys' fees and costs. The state shall also

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receive an amount for reasonable expenses which the court finds to have been necessarily

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incurred by the attorney general, including reasonable attorneys' fees and costs, and the amount

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received shall be deposited in the false claims act fund created under this chapter. All such

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expenses, fees, and costs shall be awarded against the defendant.

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      (2) If the state does not proceed with an action under this section, the person bringing the

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action or settling the claim shall receive an amount which the court decides is reasonable for

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collecting the civil penalty and damages. The amount shall be not less than twenty-five percent

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(25%) and not more than thirty percent (30%) of the proceeds of the action or settlement and shall

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be paid out of such proceeds. Such person shall also receive an amount for reasonable expenses

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which the court finds to have been necessarily incurred, plus reasonable attorneys' fees and costs.

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All such expenses, fees, and costs shall be awarded against the defendant.

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      (3) Whether or not the state proceeds with the action, if the court finds that the action

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was brought by a person who planned and initiated the violation of section 9-1.1-3 upon which

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the action was brought, then the court may, to the extent the court considers appropriate, reduce

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the share of the proceeds of the action which the person would otherwise receive under paragraph

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(1) or (2) of this subsection (d), taking into account the role of that person in advancing the case

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to litigation and any relevant circumstances pertaining to the violation. If the person bringing the

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action is convicted of criminal conduct arising from his or her role in the violation of section 9-

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1.1-3, that person shall be dismissed from the civil action and shall not receive any share of the

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proceeds of the action. Such dismissal shall not prejudice the right of the state to continue the

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action.

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      (4) If the state does not proceed with the action and the person bringing the action

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conducts the action, the court may award to the defendant its reasonable attorneys' fees and

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expenses if the defendant prevails in the action and the court finds that the claim of the person

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bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of

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harassment.

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      (e) Certain actions barred.

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      (1) No court shall have jurisdiction over an action brought by a former or present

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member of the guard under subsection 9-1.1-4(b) (actions by private persons) against a member

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of the guard arising out of such person's service in the guard.

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      (2) No court shall have jurisdiction over an action brought pursuant to subsection 9-1.1-

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4(b) (actions by private persons) against the governor, lieutenant governor, the attorney general,

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members of the general assembly, a member of the judiciary, the treasurer, secretary of state, the

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auditor general, any director of a state agency, and any other individual appointed to office by the

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governor if the action is based on evidence or information known to the state when the action was

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brought.

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      (3) In no event may a person bring an action under subsection 9-1.1-4(b) which is based

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upon allegations or transactions which are the subject of a civil suit or an administrative civil

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money penalty proceeding in which the state is already a party.

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      (4) (A) No court shall have jurisdiction over an action under this section based upon the

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public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a

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legislative, administrative, or auditor general's report, hearing, audit, or investigation, or from the

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news media, unless the action is brought by the attorney general or the person bringing the action

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is an original source of the information.

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      (B) For purposes of this exclusion, "original source" means an individual who has direct

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and independent knowledge of the information on which the allegations are based and has

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voluntarily provided the information to the state before filing an action under this section which is

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based on the information.

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      (f) State not liable for certain expenses. - The state is not liable for expenses which a

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person incurs in bringing an action under this section.

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      (g) Any employee who is discharged, demoted, suspended, threatened, harassed, or in

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any other manner discriminated against in the terms and conditions of employment by his or her

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employer because of lawful acts done by the employee on behalf of the employee or others in

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furtherance of an action under this section, including investigation for, initiation of, testimony for,

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or assistance in an action filed or to be filed under this section, shall be entitled to all relief

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necessary to make the employee whole. Such relief shall include reinstatement with the seniority

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status such employee would have had but for the discrimination, two (2) times the amount of

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back pay, interest on the back pay, and compensation for any special damages sustained as a

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result of the discrimination, including litigation costs and reasonable attorneys' fees. An employee

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may bring an action in the appropriate superior court for the relief provided in this subsection 9-

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1.1-4(g).

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     9-1.1-6. Subpoenas. -- (a) In general:

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      (1) Issuance and service. - Whenever the attorney general or solicitor has reason to

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believe that any person may be in possession, custody, or control of any documentary material or

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information relevant to an investigation, the attorney general or solicitor may, before

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commencing a civil proceeding under this act, issue in writing and cause to be served upon such

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person, a subpoena requiring such person:

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      (A) To produce such documentary material for inspection and copying,

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      (B) To answer, in writing, written interrogatories with respect to such documentary

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material or information,

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      (C) To give oral testimony concerning such documentary material or information, or

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      (D) To furnish any combination of such material, answers, or testimony.

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      The attorney general may delegate the authority to issue subpoenas under this subsection

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(a) to the sate police subject to conditions as the attorney general deems appropriate. Whenever a

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subpoena is an express demand for any product of discovery, the attorney general , solicitor, or

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respective or his or her delegate shall cause to be served, in any manner authorized by this

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section, a copy of such demand upon the person from whom the discovery was obtained and shall

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notify the person to whom such demand is issued of the date on which such copy was served.

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      (2) Where a subpoena requires the production of documentary material, the respondent

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shall produce the original of the documentary material, provided, however, that the attorney

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general or solicitor may agree that copies may be substituted for the originals. All documentary

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material kept or stored in electronic form, including electronic mail, shall be produced in hard

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copy, unless the attorney general or solicitor agrees that electronic versions may be substituted for

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the hard copy. The production of documentary material shall be made at the respondent's

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expense.

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      (3) Contents and deadlines. - Each subpoena issued under paragraph (1):

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      (A) Shall state the nature of the conduct constituting an alleged violation that is under

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investigation and the applicable provision of law alleged to be violated.

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      (B) Shall identify the individual causing the subpoena to be served and to whom

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communications regarding the subpoena should be directed.

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      (C) Shall state the date, place, and time at which the person is required to appear,

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produce written answers to interrogatories, produce documentary material or give oral testimony.

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The date shall not be less than ten (10) days from the date of service of the subpoena. Compliance

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with the subpoena shall be at the office of the attorney general or solicitor.

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      (D) If the subpoena is for documentary material or interrogatories, shall describe the

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documents or information requested with specificity.

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      (E) Shall notify the person of the right to be assisted by counsel.

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      (F) Shall advise that the person has twenty (20) days from the date of service or up until

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the return date specified in the demand, whichever date is earlier, to move, modify, or set aside

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the subpoena pursuant to subparagraph (j)(2)(A) of this section.

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      (b) Protected material or information.

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      (1) In general. - A subpoena issued under subsection (a) may not require the production

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of any documentary material, the submission of any answers to written interrogatories, or the

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giving of any oral testimony if such material, answers, or testimony would be protected from

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disclosure under:

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      (A) The standards applicable to subpoenas or subpoenas duces tecum issued by a court

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of this state to aid in a grand jury investigation; or

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      (B) The standards applicable to discovery requests under the Rhode Island superior court

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rules of civil procedure, to the extent that the application of such standards to any such subpoena

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is appropriate and consistent with the provisions and purposes of this section.

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      (2) Effect on other orders, rules, and laws. - Any such subpoena which is an express

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demand for any product of discovery supersedes any inconsistent order, rule, or provision of law

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(other than this section) preventing or restraining disclosure of such product of discovery to any

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person. Disclosure of any product of discovery pursuant to any such subpoena does not constitute

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a waiver of any right or privilege which the person making such disclosure may be entitled to

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invoke to resist discovery of trial preparation materials.

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      (c) Service in general. - Any subpoena issued under subsection (a) may be served by any

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person so authorized by the attorney general or by any person authorized to serve process on

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individuals within Rhode Island, through any method prescribed in the Rhode Island superior

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court rules of civil procedure or as otherwise set forth in this chapter.

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      (d) Service upon legal entities and natural persons.

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      (1) Legal entities. - Service of any subpoena issued under subsection (a) or of any

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petition filed under subsection (j) may be made upon a partnership, corporation, association, or

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other legal entity by:

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      (A) Delivering an executed copy of such subpoena or petition to any partner, executive

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officer, managing agent, general agent, or registered agent of the partnership, corporation,

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association or entity;

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      (B) Delivering an executed copy of such subpoena or petition to the principal office or

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place of business of the partnership, corporation, association, or entity; or

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      (C) Depositing an executed copy of such subpoena or petition in the United States mails

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by registered or certified mail, with a return receipt requested, addressed to such partnership,

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corporation, association, or entity as its principal office or place of business.

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      (2) Natural person. - Service of any such subpoena or petition may be made upon any

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natural person by:

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      (A) Delivering an executed copy of such subpoena or petition to the person; or

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      (B) Depositing an executed copy of such subpoena or petition in the United States mails

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by registered or certified mail, with a return receipt requested, addressed to the person at the

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person's residence or principal office or place of business.

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      (e) Proof of service. - A verified return by the individual serving any subpoena issued

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under subsection (a) or any petition filed under subsection (j) setting forth the manner of such

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service shall be proof of such service. In the case of service by registered or certified mail, such

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return shall be accompanied by the return post office receipt of delivery of such subpoena.

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      (f) Documentary material.

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      (1) Sworn certificates. - The production of documentary material in response to a

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subpoena served under this Section shall be made under a sworn certificate, in such form as the

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subpoena designates, by:

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      (A) In the case of a natural person, the person to whom the subpoena is directed, or

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      (B) In the case of a person other than a natural person, a person having knowledge of the

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facts and circumstances relating to such production and authorized to act on behalf of such

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person. The certificate shall state that all of the documentary material required by the demand and

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in the possession, custody, or control of the person to whom the subpoena is directed has been

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produced and made available to the attorney general or solicitor.

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      (2) Production of materials. - Any person upon whom any subpoena for the production

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of documentary material has been served under this section shall make such material available for

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inspection and copying to the attorney general or solicitor at the place designated in the subpoena,

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or at such other place as the attorney general or solicitor and the person thereafter may agree and

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prescribe in writing, or as the court may direct under subsection (j)(1). Such material shall be

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made so available on the return date specified in such subpoena, or on such later date as the

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attorney general or solicitor may prescribe in writing. Such person may, upon written agreement

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between the person and the attorney general or solicitor, substitute copies for originals of all or

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any part of such material.

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      (g) Interrogatories. - Each interrogatory in a subpoena served under this section shall be

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answered separately and fully in writing under oath and shall be submitted under a sworn

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certificate, in such form as the subpoena designates by:

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      (1) In the case of a natural person, the person to whom the subpoena is directed, or

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      (2) In the case of a person other than a natural person, the person or persons responsible

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for answering each interrogatory. If any interrogatory is objected to, the reasons for the objection

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shall be stated in the certificate instead of an answer. The certificate shall state that all

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information required by the subpoena and in the possession, custody, control, or knowledge of the

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person to whom the demand is directed has been submitted. To the extent that any information is

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not furnished, the information shall be identified and reasons set forth with particularity regarding

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the reasons why the information was not furnished.

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      (h) Oral examinations.

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      (1) Procedures. - The examination of any person pursuant to a subpoena for oral

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testimony served under this section shall be taken before an officer authorized to administer oaths

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and affirmations by the laws of this state or of the place where the examination is held. The

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officer before whom the testimony is to be taken shall put the witness on oath or affirmation and

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shall, personally or by someone acting under the direction of the officer and in the officer's

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presence, record the testimony of the witness. The testimony shall be taken stenographically and

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shall be transcribed. When the testimony is fully transcribed, the officer before whom the

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testimony is taken shall promptly transmit a certified copy of the transcript of the testimony in

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accordance with the instructions of the attorney general or solicitor. This subsection shall not

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preclude the taking of testimony by any means authorized by, and in a manner consistent with,

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the Rhode Island superior court rules of civil procedure.

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      (2) Persons present. - The investigator conducting the examination shall exclude from

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the place where the examination is held all persons except the person giving the testimony, the

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attorney for and any other representative of the person giving the testimony, the attorney for the

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state, any person who may be agreed upon by the attorney for the state and the person giving the

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testimony, the officer before whom the testimony is to be taken, and any stenographer taking such

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testimony.

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      (3) Where testimony taken. - The oral testimony of any person taken pursuant to a

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subpoena served under this section shall be taken in the county within which such person resides,

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is found, or transacts business, or in such other place as may be agreed upon by the attorney

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general or solicitor and such person.

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      (4) Transcript of testimony. - When the testimony is fully transcribed, the attorney

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general or solicitor or the officer before whom the testimony is taken shall afford the witness,

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who may be accompanied by counsel, a reasonable opportunity to review and correct the

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transcript, in accordance with the rules applicable to deposition witnesses in civil cases. Upon

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payment of reasonable charges, the attorney general or solicitor shall furnish a copy of the

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transcript to the witness, except that the attorney general or solicitor may, for good cause, limit

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the witness to inspection of the official transcript of the witness' testimony.

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      (5) Conduct of oral testimony.

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      (A) Any person compelled to appear for oral testimony under a subpoena issued under

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subsection (a) may be accompanied, represented, and advised by counsel, who may raise

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objections based on matters of privilege in accordance with the rules applicable to depositions in

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civil cases. If such person refuses to answer any question, a petition may be filed in superior court

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under subsection (j)(1) for an order compelling such person to answer such question.

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      (B) If such person refuses any question on the grounds of the privilege against self-

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incrimination, the testimony of such person may be compelled in accordance with rules of

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criminal procedure.

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      (6) Witness fees and allowances. - Any person appearing for oral testimony under a

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subpoena issued under subsection 9-1.1-6(a) shall be entitled to the same fees and allowances

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which are paid to witnesses in the superior court.

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      (7) Custodians of documents, answers, and transcripts.

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      (A) Designation. - The attorney general, solicitor, or their respective or his or her

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delegate shall serve as custodian of documentary material, answers to interrogatories, and

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transcripts of oral testimony received under this section.

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      (B) Except as otherwise provided in this section, no documentary material, answers to

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interrogatories, or transcripts of oral testimony, or copies thereof, while in the possession of the

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custodian, shall be available for examination by any individual, except as determined necessary

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by the attorney general or solicitor and subject to the conditions imposed by him or her for

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effective enforcement of the laws of this state, or as otherwise provided by court order.

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      (C) Conditions for return of material. - If any documentary material has been produced

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by any person in the course of any investigation pursuant to a subpoena under this section and:

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      (i) Any case or proceeding before the court or grand jury arising out of such

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investigation, or any proceeding before any state agency involving such material, has been

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completed, or

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      (ii) No case or proceeding in which such material may be used has been commenced

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within a reasonable time after completion of the examination and analysis of all documentary

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material and other information assembled in the course of such investigation, the custodian shall,

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upon written request of the person who produced such material, return to such person any such

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material which has not passed into the control of any court, grand jury, or agency through

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introduction into the record of such case or proceeding.

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      (j) Judicial proceedings.

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      (1) Petition for enforcement. - Whenever any person fails to comply with any subpoena

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issued under subsection (a), or whenever satisfactory copying or reproduction of any material

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requested in such demand cannot be done and such person refuses to surrender such material, the

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attorney general or solicitor may file, in the superior court of the county in which such person

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resides, is found, or transacts business, or the superior court in the he county in which an action

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filed pursuant to section 9-1.1-4 is pending if the action relates to the subject matter of the

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subpoena and serve upon such person a petition for an order of such court for the enforcement of

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the subpoena.

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      (2) Petition to modify or set aside subpoena.

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      (A) Any person who has received a subpoena issued under subsection (a) may file, in the

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superior court of any county within which such person resides, is found, or transacts business, and

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serve upon the attorney general a petition for an order of the court to modify or set aside such

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subpoena. In the case of a petition addressed to an express demand for any product of discovery,

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a petition to modify or set aside such demand may be brought only in the superior court of the

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county in which the proceeding in which such discovery was obtained is or was last pending. Any

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petition under this subparagraph (a) must be filed:

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      (i) Within twenty (20) days after the date of service of the subpoena, or at any time

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before the return date specified in the subpoena, whichever date is earlier, or

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      (ii) Within such longer period as may be prescribed in writing by the attorney general or

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solicitor.

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      (B) The petition shall specify each ground upon which the petitioner relies in seeking

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relief under subparagraph (a), and may be based upon any failure of the subpoena to comply with

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the provisions of this section or upon any constitutional or other legal right or privilege of such

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person. During the pendency of the petition in the court, the court may stay, as it deems proper,

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the running of the time allowed for compliance with the subpoena, in whole or in part, except that

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the person filing the petition shall comply with any portion of the subpoena not sought to be

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modified or set aside.

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      (3) Petition to modify or set aside demand for product of discovery. In the case of any

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subpoena issued under subsection (a) which is an express demand for any product of discovery,

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the person from whom such discovery was obtained may file, in the superior court of the county

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in which the proceeding in which such discovery was obtained is or was last pending, a petition

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for an order of such court to modify or set aside those portions of the subpoena requiring

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production of any such product of discovery, subject to the same terms, conditions, and

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limitations set forth in subparagraph (j)(2) of this section.

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      (4) Jurisdiction. - Whenever any petition is filed in any superior court under this

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subsection (j), such court shall have jurisdiction to hear and determine the matter so presented,

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and to enter such orders as may be required to carry out the provisions of this section. Any final

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order so entered shall be subject to appeal in the same manner as appeals of other final orders in

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civil matters. Any disobedience of any final order entered under this section by any court shall be

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punished as a contempt of the court.

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      (k) Disclosure exemption. - Any documentary material, answers to written

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interrogatories, or oral testimony provided under any subpoena issued under subsection (a) shall

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be exempt from disclosure under the Rhode Island access to public records law, section 38-2-2.

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     9-1.1-8. Funds. -- There is hereby created a separate fund entitled the false claims act

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fund. All proceeds of an action or settlement of a claim brought under this chapter shall be

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deposited in the fund., with the exception of actions brought directly by a solicitor, in which case

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the proceeds of an action or settlement of a claim brought under this chapter shall be provided to

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the respective municipality.

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     SECTION 2. Chapter 9-1.1 of the General Laws entitled "The State False Claim Act" is

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hereby amended by adding thereto the following section:

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     9-1.1-9. Powers conferred upon municipal solicitors. – All powers conferred under this

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chapter upon the attorney general with regard to the state are conferred upon solicitors with

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regard to their respective municipalities in matters involving an action under the false claims act.

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      SECTION 3. This act shall take effect upon passage.

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LC01310

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COURTS AND CIVIL PROCEDURE - THE STATE FALSE CLAIMS

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     This act would permit that municipalities, acting through their respective solicitors, could

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bring an action under the state false claims act.

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     This act would take effect upon passage.

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LC01310

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