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| Public Act 097-0978 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois False Claims Act is amended by | ||||
changing Section 4 as follows:
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(740 ILCS 175/4) (from Ch. 127, par. 4104)
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Sec. 4. Civil actions for false claims.
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(a) Responsibilities of the Attorney General and the | ||||
Department of
State Police. The Attorney General or the | ||||
Department of State Police shall diligently investigate
a civil | ||||
violation under Section 3. If the Attorney General finds that a | ||||
person violated or is violating Section 3, the Attorney General | ||||
may bring a civil action under this Section
against the person.
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The State shall receive an amount for reasonable expenses | ||||
that the court finds to have been necessarily incurred by the | ||||
Attorney General, including reasonable attorneys' fees and | ||||
costs. All such expenses, fees, and costs shall be awarded | ||||
against the defendant. The court may award amounts from the | ||||
proceeds of an action or settlement that it considers | ||||
appropriate to any governmental entity or program that has been | ||||
adversely affected by a defendant. The Attorney General, if | ||||
necessary, shall direct the State Treasurer to make a | ||||
disbursement of funds as provided in court orders or settlement | ||||
agreements. | ||
(b) Actions by private persons.
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(1) A person may bring a civil action
for a violation | ||
of Section 3 for the person and for the State. The action
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shall be brought in the name of the State. The action may | ||
be dismissed
only if the court and the Attorney General | ||
give written consent to the
dismissal and their reasons for | ||
consenting.
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(2) A copy of the complaint and written disclosure of | ||
substantially all
material evidence and information the | ||
person possesses shall be served on
the State. The | ||
complaint shall be filed in camera, shall remain under seal
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for at least 60 days, and shall not be served on the | ||
defendant until the
court so orders. The State may elect to | ||
intervene and proceed with the
action within 60 days after | ||
it receives both the complaint and the material
evidence | ||
and information.
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(3) The State may, for good cause shown, move the court | ||
for extensions
of the time during which the complaint | ||
remains under seal under paragraph
(2). Any such motions | ||
may be supported by affidavits or other submissions
in | ||
camera. The defendant shall not be required to respond to | ||
any complaint
filed under this Section until 20 days after | ||
the complaint is unsealed and
served upon the defendant.
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(4) Before the expiration of the 60-day period or any | ||
extensions
obtained under 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 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 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 prosecuting
the | ||
action, and shall not be bound by an act of the person | ||
bringing the
action. Such person shall have the right to | ||
continue as a party to the
action, subject to the | ||
limitations set forth in paragraph (2).
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(2)(A) The State may dismiss the action | ||
notwithstanding the objections
of the person initiating | ||
the action if the person has been notified by the
State of | ||
the filing of the motion and the 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 the person initiating | ||
the action if the court determines,
after a hearing, that | ||
the proposed settlement is fair, adequate, and reasonable
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under all the circumstances. Upon a showing of good 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 litigation by the | ||
person initiating the action would
interfere with or unduly | ||
delay the State's prosecution of the case, or
would be | ||
repetitious, irrelevant, or for purposes of harassment, | ||
the 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 the litigation by the | ||
person initiating the action would be
for purposes of | ||
harassment or would cause the defendant undue burden or
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unnecessary expense, the court may limit the participation | ||
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 shall have the right to | ||
conduct the action. If the
State so requests, it shall be | ||
served with copies of all pleadings filed in
the action and | ||
shall be supplied with copies of all deposition transcripts
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(at the State's expense). When a person proceeds with the | ||
action, the
court, without limiting the status and rights | ||
of the person initiating the
action, may nevertheless | ||
permit the State to intervene at a 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 certain actions of | ||
discovery by the person initiating the
action would | ||
interfere with the State's investigation or prosecution of | ||
a
criminal or civil matter arising out of the same facts, | ||
the court may stay
such discovery for a period of not more | ||
than 60 days. Such a showing shall
be conducted in camera. | ||
The court may extend the 60-day period upon a
further | ||
showing in camera that the State has pursued the criminal | ||
or civil
investigation or proceedings with reasonable | ||
diligence and any proposed
discovery in the civil action | ||
will interfere with the 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 alternate remedy | ||
available to the State, including any
administrative | ||
proceeding to determine a civil money penalty. If any such
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alternate remedy is pursued in another proceeding, the | ||
person initiating
the action shall have the same rights in | ||
such proceeding as such person
would have had if the action | ||
had continued under this Section. Any finding
of fact or | ||
conclusion of law made in such other proceeding that has | ||
become
final shall be conclusive on all parties to an | ||
action under this Section.
For purposes of the preceding | ||
sentence, a finding or conclusion is final if
it has been | ||
finally determined on appeal to the appropriate court, if | ||
all
time for filing such an appeal with respect to the | ||
finding or conclusion
has expired, or if the finding or | ||
conclusion is not subject to 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 (b), such person shall, subject
to | ||
the second sentence of this paragraph, receive at least 15% | ||
but not more
than 25% of the proceeds of the action or | ||
settlement of the claim,
depending upon the extent to which | ||
the person substantially contributed to
the prosecution of | ||
the action. Where the action is one which the court
finds | ||
to be based primarily on disclosures of specific | ||
information (other
than information provided by the person | ||
bringing the action) relating to
allegations or | ||
transactions in a criminal, civil, or administrative
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hearing, in a legislative, administrative, or Auditor | ||
General's report,
hearing, audit, or investigation, or | ||
from the news media, the court may award
such sums as it | ||
considers appropriate, but in no case more than 10% of the
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proceeds, taking into account the significance of the | ||
information and the
role of the person bringing the action | ||
in advancing the case to litigation.
Any payment to a | ||
person under the first or second sentence of this
paragraph | ||
(1) shall be made from the proceeds. Any such person shall | ||
also
receive an amount for reasonable expenses which the | ||
court finds to have
been necessarily incurred, plus | ||
reasonable attorneys' fees and costs.
The State shall also | ||
receive an amount for reasonable expenses which the
court | ||
finds to have been necessarily incurred by the Attorney | ||
General,
including reasonable attorneys' fees and costs. | ||
All such expenses, fees, and costs shall be awarded
against | ||
the defendant. The court may award amounts from the | ||
proceeds of an action or settlement that it considers | ||
appropriate to any governmental entity or program that has | ||
been adversely affected by a defendant. The Attorney | ||
General, if necessary, shall direct the State Treasurer to | ||
make a disbursement of funds as provided in court orders or | ||
settlement agreements.
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(2) If the State does not proceed with an action under | ||
this Section, the
person bringing the action or settling | ||
the claim shall receive an amount
which the court decides | ||
is reasonable for collecting the civil penalty and
damages. | ||
The amount shall be not less than 25% and not more than 30% | ||
of
the proceeds of the action or settlement and shall be | ||
paid out of such
proceeds. Such person shall also receive | ||
an amount for reasonable expenses
which the court finds to | ||
have been necessarily incurred, plus reasonable
attorneys' | ||
fees and costs. All such expenses, fees, and costs shall be
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awarded against the defendant. The court may award amounts | ||
from the proceeds of an action or settlement that it | ||
considers appropriate to any governmental entity or | ||
program that has been adversely affected by a defendant. | ||
The Attorney General, if necessary, shall direct the State | ||
Treasurer to make a disbursement of funds as provided in | ||
court orders or settlement agreements.
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(3) Whether or not the State proceeds with the action, | ||
if the court finds
that the action was brought by a person | ||
who planned and initiated the violation
of Section 3 upon | ||
which the action was brought, then the court may, to the
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extent the court considers appropriate, reduce the share of | ||
the proceeds of
the action which the person would otherwise | ||
receive under paragraph (1) or
(2) of this subsection (d), | ||
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
3, that person shall | ||
be dismissed from the civil action and shall not
receive | ||
any share of the proceeds of the action. Such dismissal | ||
shall not
prejudice the right of the State to continue the | ||
action, represented by the Attorney General.
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(4) If the State does not proceed with the action and | ||
the person
bringing the action conducts the action, the | ||
court may award to the
defendant its reasonable attorneys' | ||
fees and expenses if the defendant
prevails in the action | ||
and the court finds that the claim of the person
bringing | ||
the action was clearly frivolous, clearly vexatious, or | ||
brought
primarily for purposes of 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 member of the Guard under | ||
subsection
(b) of this Section against a member of the | ||
Guard arising out of such
person's service in the Guard.
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(2)(A) No court shall have jurisdiction over an action | ||
brought under
subsection (b) against a member of the | ||
General Assembly, a member of the
judiciary, or an exempt | ||
official if the action is based on evidence or
information | ||
known to the State when the action was brought.
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(B) For purposes of this paragraph (2), "exempt | ||
official" means any of
the following officials in State | ||
service: directors of departments
established under the | ||
Civil Administrative Code of Illinois, the Adjutant
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General, the Assistant Adjutant General, the Director of | ||
the State
Emergency Services and Disaster Agency, members | ||
of the boards and
commissions, and all other positions | ||
appointed by the Governor by and with
the consent of the | ||
Senate.
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(3) In no event may a person bring an action under | ||
subsection (b) which
is based upon allegations or | ||
transactions which are the subject of a civil
suit or an | ||
administrative civil money penalty proceeding in which the | ||
State
is already a party.
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(4)(A) The court shall dismiss an action or claim under | ||
this Section, unless opposed by the State, if substantially | ||
the same allegations or transactions as alleged in the | ||
action or claim were publicly disclosed: No court shall | ||
have jurisdiction over an action under this
Section
based | ||
upon the public disclosure of allegations or transactions | ||
(i) in a
criminal, civil, or administrative | ||
hearing in which the State or its agent is a party; , | ||
(ii) in a State legislative, State
administrative, | ||
or Auditor General, or other State General's report, | ||
hearing, audit, or
investigation; , or | ||
(iii) from the news media, | ||
unless the action is brought by the
Attorney General or the | ||
person bringing the action is an original source of
the | ||
information.
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(B) For purposes of this paragraph (4), "original | ||
source" means an
individual who either (i) prior to a | ||
public disclosure under subparagraph (A) of this paragraph | ||
(4), has voluntarily disclosed to the State the information | ||
on which allegations or transactions in a claim are based, | ||
or (ii) has knowledge that is independent of and materially | ||
adds to the publicly disclosed allegations or | ||
transactions, has direct and independent knowledge of the | ||
information on
which the allegations are based and who has | ||
voluntarily provided the
information to the State before | ||
filing an action under this Section which
is based on the | ||
information.
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(f) State not liable for certain expenses. The State is not | ||
liable for
expenses which a person incurs in bringing an action | ||
under this Section.
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(g) Relief from retaliatory actions. | ||
(1) In general, any employee, contractor, or agent | ||
shall be is entitled to all relief necessary to make that | ||
employee, contractor, or agent whole, if that employee, | ||
contractor, or agent is discharged, demoted, suspended, | ||
threatened,
harassed, or in any other manner discriminated | ||
against in the terms and
conditions of employment because | ||
of lawful acts done
by the employee, contractor, or agent | ||
on behalf of the employee, contractor, or agent, or | ||
associated others in furtherance of an action under this | ||
Section or other efforts to stop one or more violations of | ||
this Act. | ||
(2) Relief under paragraph (1) shall include | ||
reinstatement with the same seniority status that the | ||
employee, contractor, or agent
would have had but for the | ||
discrimination, 2 times the amount of back pay,
interest on | ||
the back pay, and compensation for any special damages | ||
sustained
as a result of the discrimination, including | ||
litigation costs and
reasonable attorneys' fees. An action | ||
under this subsection (g) may be brought in the
appropriate | ||
circuit court for the relief provided in this subsection | ||
(g). | ||
(3) A civil action under this subsection may not be | ||
brought more than 3 years after the date when the | ||
retaliation occurred.
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(Source: P.A. 96-1304, eff. 7-27-10.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||