Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 22-0204.01 Conrad Imel x2313
HOUSE BILL 22-1119
House Committees Senate Committees
Judiciary
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING CIVIL LIABILITY FOR PRESENTING FALSE CLAIMS FOR101
PAYMENT TO THE
STATE, AND, IN CONNECTION THEREWITH,102
MAKING AN APPROPRIATION .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill establishes the "Colorado False Claims Act" (the act).
Pursuant to the act, a person is liable to the state or a political subdivision
of the state for a civil penalty if the person commits, conspires to commit,
or aids and abets the commission of any of the following (collectively,
"false claims"):
HOUSE
3rd Reading Unamended
April 28, 2022
HOUSE
Amended 2nd Reading
April 27, 2022
HOUSE SPONSORSHIP
Gray and Weissman, Bird, Exum, Herod, Hooton, Jodeh, Lindsay, Ricks, Valdez A.
SENATE SPONSORSHIP
Winter,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. ! Knowingly presenting, or causing to be presented, a false
or fraudulent claim for payment or approval;
! Knowingly making, using, or causing to be made or used
a false record or statement material to a false or fraudulent
claim;
! Having possession, custody, or control of property or
money used, or to be used, by the state or political
subdivision and knowingly delivering, or causing to be
delivered, less than all of the money or property;
! Authorizing the making or delivery of a document
certifying receipt of property used, or to be used, by the
state or political subdivision and, with the intent to defraud
the state or political subdivision, making or delivering the
receipt without completely knowing that the information on
the receipt is true;
! Knowingly buying, or receiving as a pledge of an
obligation or debt, public property from an officer or
employee of the state or political subdivision who lawfully
may not sell or pledge the property; or
! Knowingly making, using, or causing 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 political
subdivision, or knowingly concealing or knowingly and
improperly avoiding or decreasing an obligation to pay or
transmit money or property to the state or political
subdivision.
A person who makes a false claim is liable to the state or a
political subdivision for the same amount provided in the federal "False
Claims Act", as adjusted for inflation, plus 3 times the amount of the
damages sustained by the state or political subdivision, and the costs
incurred for the investigation and prosecution of the false claim.
The bill requires the attorney general or a local prosecutor to
investigate false claims. The attorney general, prosecuting authority of a
political subdivision, or a private individual (relator) may bring a civil
action against a person who made a false claim. The bill permits the
attorney general or prosecuting authority of a political subdivision to
intervene in an action brought by a relator. A relator may be awarded up
to 30% of the proceeds from a false claims action based on the extent the
relator contributed to the investigation and prosecution of the false claim.
If the relator is an employee of the state or political subdivision and learns
information about the false claim in the course of the relator's work, the
court will award that amount to the relator's employer.
The bill authorizes the state auditor to share information about
potential false claims with the attorney general and a political subdivision.
A court cannot hear a false claim action:
1119
-2- ! Brought against a serving member of the general assembly,
a member of the state judiciary, or an elected official in the
executive branch of the state of Colorado acting in the
member's or official's official capacity; or
! Based on the same allegations or transactions that are the
subject of a different civil or administrative proceeding.
The bill prohibits retaliatory action against an individual because
of the individual's efforts in furtherance of investigating, prosecuting, or
stopping false claims. A court hearing a false claims action may hear a
claim for retaliation against the individual.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-31-101, amend2
(1)(p) and (1)(q); and add (1)(r) as follows:3
24-31-101. Powers and duties of attorney general. (1) The4
attorney general:5
(p) May bring a civil action to enforce the provisions of section6
24-31-113; and
7
(q) May bring a civil action to enforce the provisions of section8
24-31-307 (2) or a criminal action to enforce the provisions of section9
24-31-307 (3);
AND10
(r) M
AY BRING OR INTERVENE IN A CIVIL ACTION , CONDUCT11
INVESTIGATIONS, AND ISSUE CIVIL INVESTIGATION DEMANDS PURSUANT TO12
THE "COLORADO FALSE CLAIMS ACT", PART 12 OF THIS ARTICLE 31.13
SECTION 2. In Colorado Revised Statutes, add part 12 to article14
31 of title 24 as follows:15
PART 1216
COLORADO FALSE CLAIMS ACT17
24-31-1201. Short title. T
HE SHORT TITLE OF THIS PART 12 IS THE18
"C
OLORADO FALSE CLAIMS ACT".19
24-31-1202. Definitions. A
S USED IN THIS PART 12, UNLESS THE20
1119-3- CONTEXT OTHERWISE REQUIRES :1
(1) (a) "C
LAIM" MEANS A REQUEST OR DEMAND, WHETHER UNDER2
A CONTRACT OR OTHERWISE, FOR MONEY OR PROPERTY AND WHETHER OR3
NOT THE STATE OR A POLITICAL SUBDIVISION HAS TITLE TO THE MONEY OR4
PROPERTY, THAT IS:5
(I) P
RESENTED TO AN OFFICER, EMPLOYEE, OR AGENT OF THE6
STATE OR POLITICAL SUBDIVISION; OR7
(II) M
ADE TO A CONTRACTOR, GRANTEE, OR OTHER RECIPIENT, IF8
THE MONEY OR PROPERTY IS TO BE SPENT OR USED ON THE STATE 'S OR9
POLITICAL SUBDIVISION'S BEHALF OR TO ADVANCE A GOVERNMENT10
PROGRAM OR INTEREST, AND IF THE STATE OR POLITICAL SUBDIVISION:11
(A) P
ROVIDES OR HAS PROVIDED ANY PORTION OF THE MONEY OR12
PROPERTY REQUESTED OR DEMANDED ; OR13
(B) W
ILL REIMBURSE SUCH CONTRACTOR , GRANTEE, OR OTHER14
RECIPIENT FOR ANY PORTION OF THE MONEY OR PROPERTY THAT IS15
REQUESTED OR DEMANDED .16
(b) "C
LAIM" DOES NOT INCLUDE A REQUEST OR DEMAND FOR17
MONEY OR PROPERTY THAT THE STATE OR A POLITICAL SUBDIVISION HAS18
PAID:19
(I) T
O AN INDIVIDUAL AS COMPENSATION FOR EMPLOYMENT BY20
THE STATE OR POLITICAL SUBDIVISION;21
(II) A
S AN INCOME SUBSIDY WITH NO RESTRICTIONS ON THAT22
INDIVIDUAL'S USE OF THE MONEY OR PROPERTY;23
(III) T
O AN INDIVIDUAL AS PART OF A GOVERNMENT ASSISTANCE24
PROGRAM IN AN AMOUNT LESS THAN
TEN THOUSAND DOLLARS IN A25
CALENDAR YEAR; OR26
(IV) T
O AN INDIVIDUAL UNDER THE "COLORADO MEDICAL27
1119
-4- ASSISTANCE ACT", ARTICLES 4, 5, AND 6 OF TITLE 25.5.1
(2) "D
EPARTMENT" MEANS THE DEPARTMENT OF LAW .2
(3) "F
UND" MEANS THE FALSE CLAIMS RECOVERY CASH FUND3
CREATED IN SECTION 24-31-1209.4
(4) (a) "K
NOWING" OR "KNOWINGLY" MEAN THAT A PERSON, WITH5
RESPECT TO INFORMATION ABOUT A CLAIM :6
(I) H
AS ACTUAL KNOWLEDGE OF THE
FALSITY OF THE7
INFORMATION;8
(II) A
CTS IN DELIBERATE IGNORANCE OF THE TRUTH OR FALSITY OF9
THE INFORMATION; OR10
(III) A
CTS IN RECKLESS DISREGARD OF THE TRUTH OR FALSITY OF11
THE INFORMATION.12
(b) "K
NOWING" OR "KNOWINGLY" DOES NOT REQUIRE PROOF OF13
SPECIFIC INTENT TO DEFRAUD.
A PERSON WHO ACTS MERELY NEGLIGENTLY14
WITH RESPECT TO INFORMATION IS NOT DEEMED TO HAVE ACTED15
KNOWINGLY, UNLESS THE PERSON ACTS WITH RECKLESS DISREGARD OF16
THE TRUTH OR FALSITY OF THE INFORMATION .17
(5) "M
ATERIAL" MEANS HAVING A NATURAL TENDENCY TO18
INFLUENCE, OR BE CAPABLE OF INFLUENCING, THE PAYMENT OR RECEIPT19
OF MONEY OR PROPERTY.20
(6) "O
BLIGATION" MEANS AN ESTABLISHED DUTY , WHETHER OR21
NOT FIXED, ARISING FROM AN EXPRESS OR IMPLIED CONTRACTUAL ,22
GRANTOR-GRANTEE, OR LICENSOR-LICENSEE RELATIONSHIP; FROM A23
FEE-BASED OR SIMILAR RELATIONSHIP; FROM STATUTE OR REGULATION; OR24
FROM THE RETENTION OF ANY OVERPAYMENT .25
(7) "P
ERSON" MEANS ANY INDIVIDUAL, CORPORATION, BUSINESS26
TRUST, ESTATE, TRUST, LIMITED LIABILITY COMPANY , PARTNERSHIP,27
1119
-5- ASSOCIATION, OR OTHER NONGOVERNMENTAL LEGAL ENTITY .1
(8) "P
OLITICAL SUBDIVISION" MEANS A TOWN, CITY, COUNTY, OR2
CITY AND COUNTY.3
(9) "P
ROCEEDS" MEANS ALL MONEY , PROPERTY, DAMAGES,4
DOUBLE DAMAGES, TREBLE DAMAGES, CIVIL PENALTIES, AND PAYMENTS5
FOR COSTS OF COMPLIANCE , INCLUDING REASONABLE COSTS AND6
ATTORNEY FEES, REALIZED BY THE STATE OR A POLITICAL SUBDIVISION ,7
WHETHER AS A RESULT OF ANY SETTLEMENT OF OR JUDGMENT ENTERED8
IN ANY ACTION BROUGHT PURSUANT TO THIS PART 12.9
(10) "P
ROSECUTING AUTHORITY" MEANS THE COUNTY ATTORNEY ,10
CITY ATTORNEY, OR OTHER LOCAL GOVERNMENT OFFICIAL , INCLUDING A11
DULY ELECTED DISTRICT ATTORNEY , CHARGED WITH INVESTIGATING ,12
FILING, AND CONDUCTING CIVIL LEGAL PROCEEDINGS ON BEHALF OF , OR IN13
THE NAME OF, A PARTICULAR POLITICAL SUBDIVISION.14
15
24-31-1203. False claims - civil liability for certain acts -16
penalty - exception. (1) S
UBJECT TO SUBSECTION (2) OF THIS SECTION17
AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (5) OF THIS SECTION,18
A PERSON IS LIABLE TO THE STATE OR A POLITICAL SUBDIVISION FOR A19
CIVIL PENALTY
OF NOT LESS THAN ELEVEN THOUSAND EIGHT HUNDRED20
DOLLARS AND NOT MORE THAN TWENTY-THREE THOUSAND SIX HUNDRED21
DOLLARS PER VIOLATION, PLUS THREE TIMES THE AMOUNT OF DAMAGES22
THAT THE STATE OR POLITICAL SUBDIVISION SUSTAINS BECAUSE OF THE23
ACT OF THAT PERSON, IF THAT PERSON:24
(a) K
NOWINGLY PRESENTS, OR CAUSES TO BE PRESENTED, A FALSE25
OR FRAUDULENT CLAIM FOR PAYMENT OR APPROVAL ;26
(b) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A27
1119
-6- FALSE RECORD OR STATEMENT MATERIAL TO A FALSE OR FRAUDULENT1
CLAIM;2
(c) H
AS POSSESSION, CUSTODY, OR CONTROL OF PROPERTY OR3
MONEY USED, OR TO BE USED, BY THE STATE OR POLITICAL SUBDIVISION4
AND KNOWINGLY DELIVERS, OR CAUSES TO BE DELIVERED, LESS THAN ALL5
OF THE MONEY OR PROPERTY;6
(d) A
UTHORIZES THE MAKING OR DELIVERY OF A DOCUMENT7
CERTIFYING RECEIPT OF PROPERTY USED, OR TO BE USED, BY THE STATE OR8
POLITICAL SUBDIVISION AND, WITH THE INTENT TO DEFRAUD THE STATE OR9
POLITICAL SUBDIVISION, MAKES OR DELIVERS THE RECEIPT WITHOUT10
COMPLETELY KNOWING THAT THE INFORMATION ON THE RECEIPT IS TRUE ;11
(e) K
NOWINGLY BUYS, OR RECEIVES AS A PLEDGE OF AN12
OBLIGATION OR DEBT, PUBLIC PROPERTY FROM AN OFFICER OR EMPLOYEE13
OF THE STATE OR POLITICAL SUBDIVISION WHO LAWFULLY MAY NOT SELL14
OR PLEDGE THE PROPERTY;15
(f) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A16
FALSE RECORD OR STATEMENT MATERIAL TO AN OBLIGATION TO PAY OR17
TRANSMIT MONEY OR PROPERTY TO THE STATE OR POLITICAL SUBDIVISION ,18
OR KNOWINGLY CONCEALS OR KNOWINGLY AND IMPROPERLY AVOIDS OR19
DECREASES AN OBLIGATION TO PAY OR TRANSMIT MONEY OR PROPERTY TO20
THE STATE OR POLITICAL SUBDIVISION;
21
(g) KNOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED,22
A FALSE RECORD OR STATEMENT MATERIAL TO A CLAIM TO23
UNEMPLOYMENT INSURANCE BENEFITS WHEN THE PERSON HAS24
WRONGFULLY RECOVERED UNEMPLOYMENT INSURANCE BENEFITS FROM25
THE STATE OF MORE THAN FIFTEEN THOUSAND DOLLARS IN A CALENDAR26
YEAR; OR27
1119
-7- (h) CONSPIRES TO COMMIT A VIOLATION OF SUBSECTIONS (1)(a) TO1
(1)(g) OF THIS SECTION.2
(2) (a) NOTWITHSTANDING THE AMOUNT OF DAMAGES3
AUTHORIZED IN SUBSECTION (1) OF THIS SECTION, FOR A PERSON WHO4
VIOLATES SUBSECTION (1) OF THIS SECTION, THE COURT MAY ASSESS5
REDUCED DAMAGES AND PENALTIES AS DESCRIBED IN SUBSECTION (2)(b)6
OR (2)(c) OF THIS SECTION IF THE COURT FINDS THAT:7
(I) THE PERSON WHO COMMITTED THE VIOLATION FURNISHED TO8
THE OFFICIALS OF THE STATE OR POLITICAL SUBDIVISION RESPONSIBLE FOR9
INVESTIGATING FALSE CLAIMS VIOLATIONS ALL INFORMATION ABOUT THE10
VIOLATION KNOWN TO THE PERSON AND FURNISHED SAID INFORMATION11
WITHIN THIRTY DAYS AFTER THE DATE ON WHICH THE PERSON FIRST12
LEARNED OF A POTENTIAL VIOLATION ;13
(II) AT THE TIME THE PERSON FURNISHED THE INFORMATION14
ABOUT THE VIOLATION TO THE OFFICIALS OF THE STATE OR POLITICAL15
SUBDIVISION, THE PERSON DID NOT HAVE ACTUAL OR CONSTRUCTIVE16
KNOWLEDGE OF THE EXISTENCE OF AN INVESTIGATION INTO THE17
VIOLATION; AND18
(III) THE PERSON FULLY COOPERATED WITH ANY INVESTIGATION19
OF THE VIOLATION BY THE STATE OR POLITICAL SUBDIVISION .20
(b) IF A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION21
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE22
STATE OR POLITICAL SUBDIVISION BEFORE A CRIMINAL PROSECUTION , CIVIL23
ACTION, OR ADMINISTRATIVE ACTION WAS COMMENCED WITH RESPECT TO24
THE VIOLATION, THE COURT SHALL ASSESS ONE AND ONE -HALF THE25
AMOUNT OF ACTUAL DAMAGES RESULTING FROM THE FALSE CLAIM,26
INCLUDING INTEREST FROM THE DATE OF THE FRAUD TO THE DATE OF FULL27
1119
-8- REPAYMENT OF ALL DAMAGES, THAT THE STATE OR POLITICAL1
SUBDIVISION SUSTAINS BECAUSE OF THE VIOLATION AND A CIVIL PENALTY2
OF NOT LESS THAN FIVE THOUSAND NINE HUNDRED DOLLARS AND NOT3
MORE THAN ELEVEN THOUSAND EIGHT HUNDRED DOLLARS PER VIOLATION.4
(c) IF A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION5
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE6
STATE OR POLITICAL SUBDIVISION WHILE A CRIMINAL PROSECUTION, CIVIL7
ACTION, OR ADMINISTRATIVE ACTION CONCERNING THE VIOLATION WAS8
UNDER SEAL PURSUANT TO SECTION 24-31-1204 (4)(b), THE COURT SHALL9
ASSESS DOUBLE THE AMOUNT OF ACTUAL DAMAGES RESULTING FROM THE10
FALSE CLAIM, INCLUDING INTEREST FROM THE DATE OF THE FRAUD TO THE11
DATE OF FULL REPAYMENT OF ALL DAMAGES , THAT THE STATE OR12
POLITICAL SUBDIVISION SUSTAINS BECAUSE OF THE VIOLATION AND A CIVIL13
PENALTY OF NOT LESS THAN SEVEN THOUSAND EIGHT HUNDRED DOLLARS14
AND NOT MORE THAN FIFTEEN THOUSAND SEVEN HUNDRED DOLLARS PER15
VIOLATION.16
(d) THE ATTORNEY GENERAL MAY DETERMINE WHETHER A PERSON17
MEETS THE CRITERIA DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION18
AND SUBMIT THE DETERMINATION AND REASONING TO THE COURT, WHICH19
THE COURT MAY CONSIDER WHEN MAKING A FINDING AS TO WHETHER THE20
BUSINESS SATISFIES THE CRITERIA DESCRIBED IN SUBSECTION (2)(a) OF21
THIS SECTION.22
(3) A
NY INFORMATION FURNISHED PURSUANT TO SUBSECTION (2)23
OF THIS SECTION IS EXEMPT FROM DISCLOSURE PURSUANT TO THE24
"C
OLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF THIS TITLE25
24.26
(4) A
PERSON WHO VIOLATES THIS SECTION IS ALSO LIABLE TO THE27
1119
-9- STATE OR A POLITICAL SUBDIVISION FOR REASONABLE ATTORNEY FEES1
AND THE COSTS INCURRED DURING THE ENFORCEMENT OF THIS PART 12.2
(5) T
HIS SECTION DOES NOT APPLY TO CLAIMS , RECORDS, OR3
STATEMENTS MADE PURSUANT TO TITLE 39.4 (6) (a) THE MAXIMUM AND MINIMUM AMOUNTS FOR THE CIVIL5
PENALTIES DESCRIBED IN THIS SECTION MUST BE ADJUSTED FOR INFLATION6
ON JULY 1, 2023, AND EACH JULY 1 THEREAFTER. THE ADJUSTMENT MADE7
PURSUANT TO THIS SUBSECTION (6) MUST BE ROUNDED UPWARD OR8
DOWNWARD TO THE NEAREST TEN-DOLLAR INCREMENT. THE SECRETARY9
OF STATE SHALL CERTIFY THE ADJUSTED MAXIMUM AND MINIMUM10
AMOUNTS FOR CIVIL PENALTIES WITHIN FOURTEEN DAYS AFTER THE11
APPROPRIATE INFORMATION IS AVAILABLE .12
(b) FOR EACH ACTION BROUGHT PURSUANT TO THIS PART 12, THE13
APPLICABLE MINIMUM AND MAXIMUM AMOUNTS FOR A CIVIL PENALTY ARE14
THE AMOUNTS IN EFFECT ON THE DATE THE CAUSE OF ACTION ACCRUES .15
(c) AS USED IN THIS SECTION, "INFLATION" MEANS THE ANNUAL16
PERCENTAGE CHANGE IN THE DENVER-AURORA-LAKEWOOD CONSUMER17
PRICE INDEX, OR ITS APPLICABLE SUCCESSOR INDEX, PUBLISHED BY THE18
UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS .19
(7) FOR ACCOUNTING PURPOSES, A FINE OR PENALTY RECEIVED BY20
THE STATE PURSUANT TO THIS PART 12 IS A DAMAGE AWARD.21
(8) (a) IF THE ATTORNEY GENERAL OR A POLITICAL SUBDIVISION22
HAS AUTHORITY TO BRING OR INTERVENE IN A CIVIL ACTION PURSUANT TO23
THIS PART 12, THE ATTORNEY GENERAL OR POLITICAL SUBDIVISION MAY24
ACCEPT FROM A PERSON ALLEGED TO HAVE VIOLATED SUBSECTION (1) OF25
THIS SECTION, IN LIEU OF OR AS A PART OF A CIVIL ACTION, AN ASSURANCE26
OF DISCONTINUANCE OR A CONSENT ORDER APPROVED BY A COURT OF27
1119
-10- COMPETENT JURISDICTION OF THE ALLEGED VIOLATION OF THIS PART 12.1
THE ASSURANCE OR CONSENT ORDER MAY INCLUDE A STIPULATION FOR2
THE VOLUNTARY PAYMENT BY THE ALLEGED VIOLATOR OF ANY RELIEF3
AUTHORIZED BY THIS PART 12, INCLUDING PAYMENT FOR INVESTIGATION4
AND LITIGATION COSTS INCURRED BY THE ATTORNEY GENERAL, POLITICAL5
SUBDIVISION, OR PRIVATE PERSON WHO BROUGHT AN ACTION PURSUANT6
TO SECTION 24-31-1204 (4), AND ACTUAL DAMAGES RESULTING FROM THE7
FALSE CLAIM PLUS ANY AUTHORIZED MULTIPLIER, INTEREST, AND CIVIL8
MONEY PENALTY.9
(b) AN ASSURANCE OF DISCONTINUANCE ACCEPTED BY THE10
ATTORNEY GENERAL OR POLITICAL SUBDIVISION AND ANY CONSENT ORDER11
FILED WITH THE COURT AS A PART OF AN ACTION IS A MATTER OF PUBLIC12
RECORD UNLESS THE ATTORNEY GENERAL OR POLITICAL SUBDIVISION13
DETERMINES, AT THE ATTORNEY GENERAL'S OR POLITICAL SUBDIVISION'S14
DISCRETION, THAT IT IS CONFIDENTIAL TO THE PARTIES TO THE ACTION OR15
PROCEEDING AND TO THE COURT AND ITS EMPLOYEES. UPON THE FILING OF16
A CIVIL ACTION OR A MOTION OR PETITION IN A PENDING CIVIL ACTION BY17
THE ATTORNEY GENERAL OR POLITICAL SUBDIVISION ALLEGING THAT A18
PERSON HAS VIOLATED A CONFIDENTIAL ASSURANCE OF DISCONTINUANCE19
OR CONSENT ORDER ACCEPTED PURSUANT TO THIS SUBSECTION (8), THE20
ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER IS A PUBLIC RECORD21
AND OPEN TO INSPECTION BY ANY PERSON .22
(c) PROOF BY A PREPONDERANCE OF THE EVIDENCE OF A23
VIOLATION OF AN ASSURANCE OR STIPULATION OR CONSENT ORDER IS24
PRIMA FACIE EVIDENCE OF A VIOLATION FOR THE PURPOSES OF ANY CIVIL25
ACTION OR PROCEEDING BROUGHT BY THE ATTORNEY GENERAL OR26
POLITICAL SUBDIVISION AFTER THE ALLEGED VIOLATION OF THE27
1119
-11- ASSURANCE OR STIPULATION OR CONSENT ORDER, WHETHER A NEW1
ACTION OR A MOTION OR PETITION IN A PENDING ACTION OR PROCEEDING.2
24-31-1204. Civil actions for false claims - claims for3
retaliation - definitions. (1) Responsibility of attorney general.4
(a) T
HE ATTORNEY GENERAL SHALL DILIGENTLY INVESTIGATE A5
VIOLATION OF SECTION 24-31-1203. IF THE ATTORNEY GENERAL FINDS6
THAT A PERSON HAS VIOLATED OR IS VIOLATING SECTION 24-31-1203, THE7
ATTORNEY GENERAL MAY BRING A CIVIL ACTION AGAINST THE PERSON8
PURSUANT TO THIS SECTION.9
(b) I
F THE ATTORNEY GENERAL BRINGS A CIVIL ACTION PURSUANT10
TO THIS SECTION ON A CLAIM INVOLVING POLITICAL SUBDIVISION MONEY11
AS WELL AS STATE MONEY , THE ATTORNEY GENERAL SHALL SERVE BY12
MAIL, WITH RETURN RECEIPT REQUESTED, A COPY OF THE COMPLAINT ON13
THE SUBDIVISION'S APPROPRIATE PROSECUTING AUTHORITY WITHIN14
FOURTEEN DAYS AFTER THE DATE THAT THE COMPLAINT IS FILED IN THE15
ACTION.16
(c) W
ITHIN SIXTY-THREE DAYS AFTER RECEIPT OF THE COMPLAINT17
PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION, AND SUBJECT TO18
SUBSECTION (2)(d) OF THIS SECTION. THE PROSECUTING AUTHORITY SHALL19
HAVE THE RIGHT TO INTERVENE IN AN ACTION BROUGHT BY THE20
ATTORNEY GENERAL PURSUANT TO THIS SECTION . THE COURT MAY PERMIT21
THE POLITICAL SUBDIVISION TO INTERVENE THEREAFTER UPON A SHOWING22
THAT ALL OF THE REQUIREMENTS OF THE COLORADO RULES OF CIVIL23
PROCEDURE HAVE BEEN MET .24
(d) IN ANY ACTION BROUGHT PURSUANT TO THIS PART 12 IN WHICH25
THE ATTORNEY GENERAL IS A PARTY, EITHER AS THE PLAINTIFF OR AS AN26
INTERVENOR, THE COURT MAY DISMISS THE ACTION UPON MOTION OF THE27
1119
-12- ATTORNEY GENERAL FOLLOWING THE NOTICE AND OPPORTUNITY FOR A1
HEARING PURSUANT TO SUBSECTION (5)(b)(I) OF THIS SECTION. IN2
DETERMINING WHETHER TO FILE A MOTION TO DISMISS, THE ATTORNEY3
GENERAL SHALL CONSIDER THE SEVERITY OF THE FALSE CLAIM, PROGRAM4
OR POPULATION IMPACTED BY THE FALSE CLAIM, DURATION OF THE FRAUD,5
WEIGHT AND MATERIALITY OF THE EVIDENCE, OTHER MEANS TO MAKE THE6
PROGRAM WHOLE, AND OTHER FACTORS THE ATTORNEY GENERAL DEEMS7
RELEVANT. THE ATTORNEY GENERAL'S DECISION-MAKING PROCESS8
CONCERNING A MOTION TO DISMISS AND ANY RECORDS RELATED TO THE9
DECISION-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION .10
(2) Responsibility of prosecuting authority. (a) A
PROSECUTING11
AUTHORITY FOR A POLITICAL SUBDIVISION SHALL DILIGENTLY12
INVESTIGATE A VIOLATION OF SECTION 24-31-1203 INVOLVING A CLAIM13
FILED WITH THAT POLITICAL SUBDIVISION . IF THE PROSECUTING14
AUTHORITY FINDS THAT A PERSON HAS VIOLATED OR IS VIOLATING15
SECTION 24-31-1203, THE PROSECUTING AUTHORITY MAY BRING A CIVIL16
ACTION AGAINST THE PERSON PURSUANT TO THIS SECTION .17
(b) I
F A PROSECUTING AUTHORITY BRINGS A CIVIL ACTION18
PURSUANT TO THIS SECTION ON A CLAIM INVOLVING STATE AND POLITICAL19
SUBDIVISION MONEY, THE PROSECUTING AUTHORITY SHALL SERVE BY20
MAIL, WITH RETURN RECEIPT REQUESTED, A COPY OF THE COMPLAINT ON21
THE ATTORNEY GENERAL WITHIN FOURTEEN DAYS AFTER THE DATE THAT22
THE COMPLAINT IS FILED IN THE ACTION.23
(c) W
ITHIN SIXTY-THREE DAYS AFTER RECEIVING THE COMPLAINT24
PURSUANT TO SUBSECTION (2)(b) OF THIS SECTION, THE ATTORNEY25
GENERAL SHALL EITHER:26
(I) N
OTIFY THE COURT THAT THE ATTORNEY GENERAL INTENDS TO27
1119
-13- PROCEED WITH THE ACTION , IN WHICH CASE THE ATTORNEY GENERAL1
SHALL ASSUME PRIMARY RESPONSIBILITY FOR CONDUCTING THE ACTION2
AND THE PROSECUTING AUTHORITY HAS THE RIGHT TO CONTINUE AS A3
PARTY; OR4
(II) N
OTIFY THE COURT THAT THE ATTORNEY GENERAL DECLINES5
TO TAKE OVER THE ACTION, IN WHICH CASE THE PROSECUTING AUTHORITY6
HAS THE RIGHT TO CONDUCT THE ACTION .7
(d) N
OTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,8
A POLITICAL SUBDIVISION IS NOT PERMITTED TO BRING AN ACTION9
PURSUANT TO THIS SUBSECTION (2) OR INTERVENE IN AN ACTION10
PURSUANT TO SUBSECTION (1)(c) OR (4)(b) OF THIS SECTION WITHOUT THE11
CONSENT OF THE ATTORNEY GENERAL OR THE ATTORNEY GENERAL 'S12
DESIGNEE.13
(e) THE LIMITATIONS AND REQUIREMENTS DESCRIBED IN SECTION14
13-17-304 APPLY TO A CONTINGENT FEE CONTRACT BETWEEN A POLITICAL15
SUBDIVISION AND A PRIVATE ATTORNEY ENTERED INTO FOR THE PURPOSE16
OF BRINGING OR INTERVENING IN AN ACTION PURSUANT TO THIS PART 12.17
(3) Role of the office of the state auditor.18
(a) N
OTWITHSTANDING ANY OTHER STATE LAW REQUIRING THE STATE19
AUDITOR TO KEEP INFORMATION CONFIDENTIAL , IF IN THE COURSE OF ITS20
AUDIT AUTHORITY, THE OFFICE OF THE STATE AUDITOR IDENTIFIES21
INFORMATION OF POTENTIAL FALSE CLAIMS SUBMITTED TO THE STATE OR22
A POLITICAL SUBDIVISION, THE STATE AUDITOR MAY SHARE ANY23
INFORMATION WITH THE ATTORNEY GENERAL OR THE POLITICAL24
SUBDIVISION. THE STATE AUDITOR MAY PARTICIPATE, WITH THE CONSENT25
OF THE ATTORNEY GENERAL , IN ANY SUBSEQUENT INVESTIGATION OR26
PROSECUTION OF THAT FALSE CLAIM .27
1119
-14- (b) IF THE STATE AUDITOR ELECTS TO PARTICIPATE IN ANY1
INVESTIGATION AND PROSECUTION OF A FALSE CLAIM , THE STATE2
AUDITOR'S INTERESTS WILL BE REPRESENTED BY THE ATTORNEY GENERAL .3
(4) Actions by private persons. (a) A
PERSON MAY BRING A CIVIL4
ACTION FOR A VIOLATION OF SECTION 24-31-1203 FOR THE PERSON AND5
FOR THE STATE OR A POLITICAL SUBDIVISION THAT IS AFFECTED BY THE6
VIOLATION. THE ACTION MUST BE BROUGHT IN THE NAME OF THE STATE OR7
POLITICAL SUBDIVISION. THE COURT SHALL NOT DISMISS AN ACTION UPON8
MOTION OF THE PRIVATE PERSON WHO BROUGHT THE ACTION UNLESS THE9
ATTORNEY GENERAL OR THE PROSECUTING AUTHORITY GIVE WRITTEN10
CONSENT TO THE DISMISSAL AND THEIR REASONS FOR CONSENTING .11
(b) (I) A PERSON WHO BRINGS AN ACTION SHALL SERVE ON THE12
STATE OR POLITICAL SUBDIVISION , PURSUANT TO RULE 4 OF THE13
C
OLORADO RULES OF CIVIL PROCEDURE , A COPY OF THE COMPLAINT AND14
WRITTEN DISCLOSURE OF SUBSTANTIALLY ALL MATERIAL EVIDENCE AND15
INFORMATION THE
PERSON POSSESSES; EXCEPT THAT THE PERSON SHALL16
NOT DISCLOSE ANY EVIDENCE OR INFORMATION THAT THE PERSON17
REASONABLY BELIEVES IS PROTECTED BY THE DEFENDANT 'S18
ATTORNEY-CLIENT PRIVILEGE UNLESS THE PRIVILEGE WAS WAIVED,19
INADVERTENTLY OR OTHERWISE, BY THE PERSON WHO HOLDS THE20
PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF21
THE INFORMATION IS PERMITTED BY AN ATTORNEY PURSUANT TO 17 CFR22
205.3 (d)(2), THE APPLICABLE COLORADO RULES OF PROFESSIONAL23
CONDUCT, OR OTHERWISE. THE COMPLAINT MUST BE FILED IN CAMERA ,24
MUST REMAIN UNDER SEAL FOR AT LEAST SIXTY -THREE DAYS, AND MUST25
NOT BE SERVED ON THE DEFENDANT UNTIL THE COURT SO ORDERS . THE26
STATE, OR A POLITICAL SUBDIVISION WITH THE CONSENT OF THE27
1119
-15- ATTORNEY GENERAL, MAY ELECT TO INTERVENE AND PROCEED WITH THE1
ACTION WITHIN SIXTY-THREE DAYS AFTER IT RECEIVES BOTH THE2
COMPLAINT AND THE MATERIAL EVIDENCE AND INFORMATION . IF BOTH3
THE STATE AND POLITICAL SUBDIVISION INTERVENE , THE ATTORNEY4
GENERAL SHALL ASSUME PRIMARY RESPONSIBILITY FOR CONDUCTING THE5
ACTION.6
(II) IN DETERMINING WHETHER TO INTERVENE AND PROCEED WITH7
AN ACTION PURSUANT TO THIS SUBSECTION (4)(b), THE ATTORNEY8
GENERAL SHALL CONSIDER THE FACTORS DESCRIBED IN SUBSECTION (1)(d)9
OF THIS SECTION. THE ATTORNEY GENERAL'S DECISION-MAKING PROCESS10
CONCERNING WHETHER TO INTERVENE AND ANY RECORDS RELATED TO11
THE DECISION-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION.12
(c) T
HE STATE OR POLITICAL SUBDIVISION MAY, FOR GOOD CAUSE13
SHOWN, MOVE THE COURT FOR EXTENSIONS OF THE TIME DURING WHICH14
THE COMPLAINT REMAINS UNDER SEAL PURSUANT TO SUBSECTION (4)(b)15
OF THIS SECTION. THE MOTION MAY BE SUPPORTED BY AFFIDAVITS OR16
OTHER SUBMISSIONS IN CAMERA . THE DEFENDANT IS NOT REQUIRED TO17
RESPOND TO ANY COMPLAINT FILED PURSUANT TO THIS SECTION UNTIL18
TWENTY-ONE DAYS AFTER THE COMPLAINT IS UNSEALED AND SERVED19
UPON THE DEFENDANT PURSUANT TO RULE 4 OF THE COLORADO RULES OF20
CIVIL PROCEDURE.21
(d) B
EFORE THE EXPIRATION OF THE SIXTY -THREE-DAY PERIOD22
PURSUANT TO SUBSECTION (4)(b) OF THIS SECTION AND ANY EXTENSIONS23
OBTAINED PURSUANT TO SUBSECTION (4)(c) OF THIS SECTION, THE STATE24
OR POLITICAL SUBDIVISION SHALL:25
(I) P
ROCEED WITH THE ACTION , IN WHICH CASE THE STATE OR26
POLITICAL SUBDIVISION SHALL CONDUCT THE ACTION ; OR27
1119
-16- (II) NOTIFY THE COURT THAT IT DECLINES TO TAKE OVER THE1
ACTION, IN WHICH CASE THE PERSON WHO BROUGHT THE ACTION HAS THE2
RIGHT TO CONTINUE THE ACTION.3
(e) W
HEN A
PERSON BRINGS AN ACTION PURSUANT TO THIS4
SUBSECTION (4), ONLY THE STATE, OR A POLITICAL SUBDIVISION WITH THE5
CONSENT OF THE ATTORNEY GENERAL , MAY INTERVENE OR BRING A6
RELATED ACTION BASED ON THE FACTS UNDERLYING THE PENDING7
ACTION.8
(f) ANY INFORMATION PROVIDED BY A PERSON TO THE STATE OR9
POLITICAL SUBDIVISION PURSUANT TO THIS SUBSECTION (4) IS EXEMPT10
FROM DISCLOSURE PURSUANT TO THE "COLORADO OPEN RECORDS ACT",11
PART 2 OF ARTICLE 72 OF THIS TITLE 24.12
(5) Rights of parties to private actions. (a) I
F THE STATE OR A13
POLITICAL SUBDIVISION PROCEEDS WITH AN ACTION BROUGHT PURSUANT14
TO SUBSECTION (4) OF THIS SECTION, IT HAS THE PRIMARY RESPONSIBILITY15
FOR PROSECUTING THE ACTION AND IS NOT BOUND BY AN ACT OF THE16PERSON WHO BROUGHT THE ACTION. THE PERSON HAS THE RIGHT TO17
CONTINUE AS A PARTY TO THE ACTION, SUBJECT TO THE LIMITATIONS SET18
FORTH IN SUBSECTION (4)(b) OF THIS SECTION.19
(b) (I) T
HE STATE OR POLITICAL SUBDIVISION
MAY, AT ANY TIME,20
DISMISS THE ACTION, IN WHOLE OR IN PART, NOTWITHSTANDING THE21
OBJECTIONS OF THE PERSON WHO BROUGHT THE ACTION IF THE PERSON22
HAS BEEN NOTIFIED BY THE STATE OR POLITICAL SUBDIVISION OF THE23
FILING OF THE MOTION AND THE COURT HAS PROVIDED THE PERSON WITH24
AN OPPORTUNITY FOR A HEARING ON THE MOTION .25
(II) T
HE STATE OR POLITICAL SUBDIVISION MAY SETTLE THE26
ACTION WITH THE DEFENDANT NOTWITHSTANDING THE OBJECTIONS OF THE27
1119
-17- PERSON WHO BROUGHT THE ACTION IF THE COURT DETERMINES, AFTER A1
HEARING, THAT THE PROPOSED SETTLEMENT IS FAIR , ADEQUATE, AND2
REASONABLE UNDER ALL THE CIRCUMSTANCES . UPON A SHOWING OF3
GOOD CAUSE, THE COURT MAY HOLD THE HEARING IN CAMERA .4
(III) U
PON A SHOWING BY THE STATE OR POLITICAL SUBDIVISION5
THAT UNRESTRICTED PARTICIPATION DURING THE COURSE OF THE6
LITIGATION BY THE
PERSON WHO BROUGHT THE ACTION WOULD INTERFERE7
WITH OR UNDULY DELAY THE STATE 'S OR POLITICAL SUBDIVISION'S8
PROSECUTION OF THE CASE, OR WOULD BE REPETITIOUS, IRRELEVANT, OR9
FOR PURPOSES OF HARASSMENT , THE COURT MAY, IN ITS DISCRETION,10
IMPOSE LIMITATIONS ON THE PERSON'S PARTICIPATION, INCLUDING BUT11
NOT LIMITED TO:12
(A) L
IMITING THE NUMBER OF WITNESSES THE
PERSON MAY CALL;13
(B) L
IMITING THE LENGTH OF THE TESTIMONY OF THE WITNESSES14
CALLED BY THE
PERSON;15
(C) L
IMITING THE
PERSON'S CROSS-EXAMINATION OF WITNESSES;16
AND17
(D) O
THERWISE LIMITING THE PARTICIPATION BY THE
PERSON IN18
THE LITIGATION.19
(IV) U
PON A SHOWING BY THE DEFENDANT THAT UNRESTRICTED20
PARTICIPATION DURING THE COURSE OF THE LITIGATION BY THE
PERSON21
WHO BROUGHT THE ACTION WOULD BE FOR PURPOSES OF HARASSMENT OR22
WOULD CAUSE THE DEFENDANT UNDUE BURDEN OR UNNECESSARY23
EXPENSE, THE COURT MAY LIMIT THE PARTICIPATION BY THE PERSON IN24
THE LITIGATION AS DESCRIBED IN SUBSECTION (5)(b)(III) OF THIS SECTION.25
(c) THE FACT THAT THE STATE OR POLITICAL SUBDIVISION HAS26
ELECTED NOT TO PROCEED WITH AN ACTION IS NOT A BASIS FOR A MOTION27
1119
-18- TO DISMISS, MOTION FOR DETERMINATION OF A QUESTION OF LAW , OR1
MOTION FOR SUMMARY JUDGMENT , NOR IS IT A BASIS TO DENY THE COURT2
JURISDICTION OVER THE ACTION, BUT IF THE ATTORNEY GENERAL SUBMITS3
TO THE COURT THE ATTORNEY GENERAL'S REASONS FOR NOT PROCEEDING4
WITH THE ACTION, THE COURT MAY CONSIDER THE REASONS WHEN5
DECIDING A MOTION OR WHETHER THE COURT HAS JURISDICTION . IF THE6
STATE OR POLITICAL SUBDIVISION SO REQUESTS, IT MUST BE SERVED WITH7
COPIES OF ALL PLEADINGS FILED IN THE ACTION AND, AT THE STATE'S OR8
POLITICAL SUBDIVISION'S EXPENSE, BE SUPPLIED WITH COPIES OF ALL9
DEPOSITION TRANSCRIPTS. WHEN THE PERSON PROCEEDS WITH THE10
ACTION, THE COURT, WITHOUT LIMITING THE STATUS AND RIGHTS OF THE11
PERSON, MAY NEVERTHELESS PERMIT THE STATE OR POLITICAL12
SUBDIVISION TO INTERVENE AT A LATER DATE UPON A SHOWING OF GOOD13
CAUSE.14
(d) R
EGARDLESS OF WHETHER THE STATE OR POLITICAL15
SUBDIVISION PROCEEDS WITH THE ACTION, UPON A SHOWING BY THE STATE16
OR POLITICAL SUBDIVISION THAT CERTAIN ACTIONS OF DISCOVERY BY THE17 PERSON WHO BROUGHT THE ACTION WOULD INTERFERE WITH THE STATE 'S18
OR POLITICAL SUBDIVISION'S INVESTIGATION OR PROSECUTION OF A19
CRIMINAL OR CIVIL MATTER ARISING OUT OF THE SAME FACTS , THE COURT20
MAY STAY THE DISCOVERY FOR A PERIOD OF NOT MORE THAN SIXTY -THREE21
DAYS. THE SHOWING BY THE STATE OR POLITICAL SUBDIVISION MUST BE22
CONDUCTED IN CAMERA. THE COURT MAY EXTEND THE SIXTY-THREE-DAY23
PERIOD UPON A FURTHER SHOWING THAT THE STATE OR POLITICAL24
SUBDIVISION HAS PURSUED THE CRIMINAL OR CIVIL INVESTIGATION OR25
PROCEEDINGS WITH REASONABLE DILIGENCE AND THAT ANY PROPOSED26
DISCOVERY IN THE CIVIL ACTION WILL INTERFERE WITH THE ONGOING27
1119
-19- CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS .1
(e) N
OTWITHSTANDING SUBSECTION (4) OF THIS SECTION, THE2
STATE OR POLITICAL SUBDIVISION MAY ELECT TO PURSUE ITS CLAIM3
THROUGH ANY ALTERNATE REMEDY AVAILABLE TO THE STATE OR4
POLITICAL
SUBDIVISION. IF AN ALTERNATE REMEDY IS PURSUED IN5
ANOTHER PROCEEDING , THE PERSON WHO BROUGHT THE ACTION6
PURSUANT TO SUBSECTION (4) OF THIS SECTION HAS THE SAME RIGHTS IN7
THAT PROCEEDING AS THE PERSON WOULD HAVE HAD IF THE ACTION HAD8
CONTINUED PURSUANT TO THIS SECTION . ANY FINDING OF FACT OR9
CONCLUSION OF LAW MADE IN THE OTHER PROCEEDING THAT HAS BECOME10
FINAL IS BINDING ON ALL PARTIES TO AN ACTION BROUGHT PURSUANT TO11
THIS SECTION. FOR PURPOSES OF THIS SUBSECTION (5)(e), A FINDING OR12
CONCLUSION IS FINAL IF IT HAS BEEN FINALLY DETERMINED ON APPEAL TO13
THE APPROPRIATE COURT OF THE STATE , IF ALL TIME FOR FILING SUCH AN14
APPEAL WITH RESPECT TO THE FINDING OR CONCLUSION HAS EXPIRED , OR15
IF THE FINDING OR CONCLUSION IS NOT SUBJECT TO JUDICIAL REVIEW .16
(6) Award to a person who brings an action. (a) (I) SUBJECT TO17
SUBSECTION (6)(a)(II) OF THIS SECTION, IF THE STATE OR A POLITICAL18
SUBDIVISION PROCEEDS WITH AN ACTION BROUGHT BY A PERSON19
PURSUANT TO SUBSECTION (4) OF THIS SECTION, THE COURT SHALL AWARD20
THE PERSON AT LEAST FIFTEEN PERCENT BUT NOT MORE THAN21
TWENTY-FIVE PERCENT OF THE PROCEEDS RECEIVED FROM THE ACTION OR22
SETTLEMENT OF THE CLAIM, DEPENDING UPON THE EXTENT TO WHICH THE23
PERSON SUBSTANTIALLY CONTRIBUTED TO THE INVESTIGATION AND24
PROSECUTION OF THE ACTION.25
(II) I
F THE COURT FINDS THE ACTION TO BE BASED PRIMARILY ON26
DISCLOSURES OF SPECIFIC INFORMATION , OTHER THAN INFORMATION27
1119
-20- PROVIDED BY THE PERSON WHO BROUGHT THE ACTION, RELATING TO1
ALLEGATIONS OR TRANSACTIONS IN A CRIMINAL , CIVIL, OR2
ADMINISTRATIVE HEARING ; IN A LEGISLATIVE, ADMINISTRATIVE, OR3
FORMAL AUDIT REPORT, HEARING, OR INVESTIGATION; OR FROM THE NEWS4
MEDIA, THE COURT MAY AWARD TO THE PERSON SUCH SUMS AS IT5
CONSIDERS APPROPRIATE BUT IN NO CASE MORE THAN TEN PERCENT OF6
THE PROCEEDS. IN MAKING ITS DETERMINATION , THE COURT SHALL7
CONSIDER THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE8
PERSON AND THE ROLE OF THE PERSON IN ADVANCING THE CASE TO9
LITIGATION.10
(III) A
NY PAYMENT TO A
PERSON MADE PURSUANT TO THIS11
SUBSECTION (6)(a) MUST BE MADE FROM THE PROCEEDS . IN ADDITION TO12
AN AWARD MADE PURSUANT TO SUBSECTION (6)(a)(I) OR (6)(a)(II) OF THIS13
SECTION, THE COURT SHALL AWARD THE PERSON AN AMOUNT FOR14
REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE BEEN15
NECESSARILY INCURRED, PLUS REASONABLE ATTORNEY FEES AND COSTS .16
T
HE COURT SHALL AWARD ALL OF THE EXPENSES , FEES, AND COSTS17
AGAINST THE DEFENDANT.18
(IV) I
F THE
PERSON WHO BROUGHT THE ACTION IS A GOVERNMENT19
EMPLOYEE WHO, IN THE COURSE OF THE PERSON'S WORK FOR THE STATE OR20
A POLITICAL SUBDIVISION, GAINS KNOWLEDGE OF ANY INFORMATION THAT21
FORMS, IN WHOLE OR IN PART, THE BASIS OF THE PERSON'S CLAIM, THE22
COURT SHALL AWARD TO THE STATE OR POLITICAL SUBDIVISION THAT23
EMPLOYS THE PERSON THE AMOUNT THAT WOULD OTHERWISE BE24
AWARDED TO THE PERSON PURSUANT TO THIS SUBSECTION (6).25
(b) I
F THE STATE OR POLITICAL SUBDIVISION DOES NOT INTERVENE26
IN AND PROCEED WITH AN ACTION PURSUANT TO SUBSECTION (4)(b) OF27
1119
-21- THIS SECTION, THE PERSON PREVAILING IN THE ACTION OR SETTLING THE1
CLAIM MUST RECEIVE AN AMOUNT THAT THE COURT DECIDES IS2
REASONABLE FOR COLLECTING THE CIVIL PENALTY AND DAMAGES . THE3
AMOUNT MUST BE AT LEAST TWENTY -FIVE PERCENT BUT NOT MORE THAN4
THIRTY PERCENT OF THE PROCEEDS RECEIVED FROM THE ACTION OR5
SETTLEMENT AND MUST BE PAID OUT OF THE PROCEEDS . THE COURT SHALL6
AWARD THE PERSON AN AMOUNT FOR REASONABLE EXPENSES THAT THE7
COURT FINDS TO HAVE BEEN NECESSARILY INCURRED , PLUS REASONABLE8
ATTORNEY FEES AND COSTS . THE COURT SHALL AWARD ALL OF THE9
EXPENSES, FEES, AND COSTS AGAINST THE DEFENDANT .10
(c) R
EGARDLESS OF WHETHER THE STATE OR A POLITICAL11
SUBDIVISION INTERVENES IN AND PROCEEDS WITH AN ACTION PURSUANT12
TO SUBSECTION (4)(b) OF THIS SECTION, IF THE COURT FINDS THAT THE13
ACTION WAS BROUGHT BY A
PERSON WHO PLANNED AND INITIATED THE14
VIOLATION OF SECTION 24-31-1203 UPON WHICH THE ACTION WAS15
BROUGHT, THE COURT MAY, TO THE EXTENT THE COURT CONSIDERS16
APPROPRIATE, REDUCE THE SHARE OF THE PROCEEDS OF THE ACTION THAT17
THE PERSON WOULD OTHERWISE RECEIVE PURSUANT TO THIS SUBSECTION18
(6),
TAKING INTO ACCOUNT THE ROLE OF THE
PERSON IN ADVANCING THE19
CASE TO LITIGATION AND ANY RELEVANT CIRCUMSTANCES PERTAINING TO20
THE VIOLATION. IF THE PERSON IS CONVICTED OF CRIMINAL CONDUCT21
ARISING FROM HIS OR HER ROLE IN THE VIOLATION OF SECTION22
24-31-1203,
THE COURT SHALL DISMISS THE
PERSON FROM THE CIVIL23
ACTION AND THE PERSON MUST NOT RECEIVE ANY SHARE OF THE24
PROCEEDS OF THE ACTION. SUCH DISMISSAL DOES NOT PREJUDICE THE25
RIGHT OF THE STATE OR POLITICAL SUBDIVISION TO CONTINUE THE ACTION .26
(d) I
F THE STATE OR A POLITICAL SUBDIVISION DOES NOT27
1119
-22- INTERVENE IN AND PROCEED WITH AN ACTION PURSUANT TO SUBSECTION1
(4)(b)
OF THIS SECTION AND THE
PERSON WHO BROUGHT THE ACTION2
PURSUES THE ACTION, THE COURT MAY AWARD TO THE DEFENDANT3
REASONABLE ATTORNEY FEES AND EXPENSES IF THE DEFENDANT PREVAILS4
IN THE ACTION AND THE COURT FINDS THAT THE CLAIM OF THE PERSON5
WAS CLEARLY FRIVOLOUS, CLEARLY VEXATIOUS, OR BROUGHT PRIMARILY6
FOR PURPOSES OF HARASSMENT .7
(7) Certain actions barred. (a) A
COURT DOES NOT HAVE8
JURISDICTION OVER AN ACTION BROUGHT PURSUANT TO THIS SECTION :9
(I) A
GAINST A SERVING MEMBER OF THE GENERAL ASSEMBLY , A10
MEMBER OF THE STATE JUDICIARY,
AN EXECUTIVE DIRECTOR OF A STATE11
AGENCY, OR AN ELECTED OFFICIAL IN THE EXECUTIVE BRANCH OF THE12
STATE OF COLORADO ACTING IN THE MEMBER'S, EXECUTIVE DIRECTOR'S,13
OR OFFICIAL'S OFFICIAL CAPACITY; OR14
(II) I
F THE ACTION IS BROUGHT BY A
PERSON PURSUANT TO15
SUBSECTION (4) OF THIS SECTION AND IS BASED ON EVIDENCE OR16
INFORMATION KNOWN TO THE STATE OR POLITICAL SUBDIVISION WHEN THE17
ACTION WAS BROUGHT.18
(b) A
PERSON MAY NOT BRING AN ACTION PURSUANT TO19
SUBSECTION (4) OF THIS SECTION THAT IS BASED UPON ALLEGATIONS OR20
TRANSACTIONS THAT ARE THE SUBJECT OF A CIVIL SUIT IN A COURT OF THIS21
STATE OR AN ADMINISTRATIVE CIVIL MONEY PENALTY PROCEEDING IN22
WHICH THE STATE OR A POLITICAL SUBDIVISION IS ALREADY A PARTY .23
(c) (I) A
COURT SHALL DISMISS AN ACTION OR CLAIM BROUGHT24
PURSUANT TO SUBSECTION (4) OF THIS SECTION IF THE ACTION PURSUED BY25
THE
PERSON IS BASED UPON SUBSTANTIALLY THE SAME ALLEGATIONS OR26
TRANSACTIONS PUBLICLY DISCLOSED IN A CRIMINAL , CIVIL, OR27
1119
-23- ADMINISTRATIVE HEARING ; IN A LEGISLATIVE, ADMINISTRATIVE, OR1
FORMAL AUDIT REPORT, HEARING, OR INVESTIGATION; OR FROM THE NEWS2
MEDIA, UNLESS:3
(A) T
HE STATE OR A POLITICAL SUBDIVISION INTERVENES AND4
PROSECUTES THE ACTION PURSUANT TO SUBSECTION (4)(b) OF THIS5
SECTION;6
(B) T
HE STATE OR POLITICAL SUBDIVISION OPPOSES DISMISSAL; OR7
(C) T
HE
PERSON WHO BROUGHT THE ACTION IS AN ORIGINAL8
SOURCE OF THE INFORMATION THAT IS THE BASIS FOR THE ACTION .9
(II) A
S USED IN THIS SUBSECTION (7)(c), "ORIGINAL SOURCE"10
MEANS AN INDIVIDUAL WHO:11
(A) P
RIOR TO PUBLIC DISCLOSURE PURSUANT TO SUBSECTION12
(7)(c)(I)
OF THIS SECTION, HAS VOLUNTARILY DISCLOSED TO THE STATE OR13
POLITICAL SUBDIVISION THE INFORMATION ON WHICH THE ALLEGATIONS14
OR TRANSACTIONS IN A CLAIM ARE BASED ; OR15
(B) H
AS KNOWLEDGE THAT IS INDEPENDENT OF AND MATERIALLY16
ADDS TO THE PUBLICLY DISCLOSED ALLEGATIONS OR TRANSACTIONS AND17
HAS VOLUNTARILY PROVIDED THE INFORMATION TO THE STATE OR18
POLITICAL SUBDIVISION BEFORE FILING AN ACTION PURSUANT TO19
SUBSECTION (4) OF THIS SECTION.20
(8) State or political subdivision not liable for certain21
expenses. T
HE STATE OR A POLITICAL SUBDIVISION IS NOT LIABLE FOR22
EXPENSES THAT A
PERSON INCURS IN BRINGING AN ACTION PURSUANT TO23
SUBSECTION (4) OF THIS SECTION.24
(9) Private action for retaliation. (a) A
S USED IN THIS25
SUBSECTION (9), UNLESS THE CONTEXT OTHERWISE REQUIRES :26
(I) "C
ONFIDENTIAL INFORMATION " INCLUDES DOCUMENTS ;27
1119
-24- E-MAILS AND OTHER ELECTRONIC DATA ; MEDICAL RECORDS; FINANCIAL1
RECORDS; TRADE SECRET INFORMATION ; INTELLECTUAL PROPERTY; OR2
INFORMATION THAT IS SUBJECT TO AN EMPLOYMENT AGREEMENT ,3
CONFIDENTIALITY AGREEMENT , OR NONDISCLOSURE AGREEMENT OR FOR4
WHICH THE PERSON WHO BROUGHT THE ACTION PURSUANT TO SUBSECTION5
(4) OF THIS SECTION HAS A FIDUCIARY OBLIGATION TO MAINTAIN AS6
CONFIDENTIAL. CONFIDENTIAL INFORMATION DOES NOT INCLUDE7
INFORMATION THAT IS PROTECTED BY THE DEFENDANT 'S8
ATTORNEY-CLIENT PRIVILEGE UNLESS THE PRIVILEGE WAS WAIVED ,9
INADVERTENTLY OR OTHERWISE , BY THE PERSON WHO HOLDS THE10
PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF11
THE INFORMATION IS PERMITTED BY AN ATTORNEY PURSUANT TO 17 CFR12
205.3 (d)(2), THE APPLICABLE COLORADO RULES OF PROFESSIONAL13
CONDUCT, OR OTHERWISE.14
(II) "L
AWFUL ACTS" INCLUDES, BUT IS NOT LIMITED TO, THE15
FOLLOWING:16
(A) C
ONDUCTING OR ASSISTING WITH AN INVESTIGATION FOR ,17
INITIATION OF, TESTIMONY FOR, OR ASSISTANCE IN AN ACTION FILED OR TO18
BE FILED PURSUANT TO THIS SECTION, OR CONDUCTING OR ASSISTING WITH19
AN INVESTIGATION WHEN THERE IS A REASONABLE BELIEF OF A POTENTIAL20
VIOLATION OF THIS SECTION;21
(B) M
EETING WITH POTENTIAL OR RETAINED COUNSEL OR AGENTS22
OR REPRESENTATIVES OF THE STATE OR POLITICAL SUBDIVISION ABOUT23
THE MATTER THAT IS THE SUBJECT OF AN ACTION FILED OR TO BE FILED24
PURSUANT TO THIS SECTION;25
(C) P
ROVIDING THE INDIVIDUAL 'S COUNSEL OR AGENTS OR26
REPRESENTATIVES OF THE STATE OR THE POLITICAL SUBDIVISION WITH27
1119
-25- CONFIDENTIAL INFORMATION; OR1
(D) F
ILING AN ACTION PURSUANT TO THIS SECTION.2
(b) A
N EMPLOYEE, CONTRACTOR, OR AGENT IS ENTITLED TO ALL3
RELIEF NECESSARY TO MAKE THAT INDIVIDUAL WHOLE IF THE INDIVIDUAL4
IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED, HARASSED,5
INTIMIDATED, SUED, DEFAMED, BLACKLISTED, OR IN ANY OTHER MANNER6
RETALIATED AGAINST OR DISCRIMINATED AGAINST IN THE TERMS AND7
CONDITIONS OF THE INDIVIDUAL 'S EMPLOYMENT, CONTRACT, BUSINESS, OR8
PROFESSION BY THE DEFENDANT OR BY ANY OTHER PERSON BECAUSE OF9
LAWFUL ACTS DONE BY THE INDIVIDUAL OR ASSOCIATED OTHERS IN10
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN11
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION , OR WHAT THE12
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION , OF SECTION13
24-31-1203.14
(c) (I) I
F THE DISCLOSURE OF CONFIDENTIAL INFORMATION IS IN15
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN16
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION , OR WHAT THE17
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION , OF SECTION18
24-31-1203,
AN INDIVIDUAL HAS A PRIVILEGE TO DISCLOSE THE19
CONFIDENTIAL INFORMATION TO :20
(A) T
HE INDIVIDUAL'S COUNSEL;21
(B) A
PERSON WITH WHOM THE INDIVIDUAL HAS A STATUTORY OR22
COMMON LAW PRIVILEGE; OR23
(C) A
N AGENT OR AUTHORIZED REPRESENTATIVE OF THE STATE OR24
POLITICAL SUBDIVISION.25
(II) T
HE INDIVIDUAL'S DISCLOSURE OF CONFIDENTIAL26
INFORMATION TO THE INDIVIDUAL 'S COUNSEL OR TO AN AGENT OR27
1119
-26- AUTHORIZED REPRESENTATIVE OF THE STATE OR POLITICAL SUBDIVISION1
DOES NOT CONSTITUTE A WAIVER BY A DEFENDANT OF ANY RIGHT OR2
PRIVILEGE THAT THE DEFENDANT MAY BE ENTITLED TO INVOKE .3
(d) (I) A
N INDIVIDUAL SEEKING RELIEF PURSUANT TO THIS4
SUBSECTION (9) MAY SEEK RELIEF BY:5
(A) F
ILING A MOTION IN THE ACTION BROUGHT PURSUANT TO6
SUBSECTION (4) OF THIS SECTION; OR7
(B) B
RINGING A SEPARATE ACTION IN AN APPROPRIATE COURT OF8
THE STATE FOR THE RELIEF PROVIDED PURSUANT TO THIS SUBSECTION (9).9
(II) A
N INDIVIDUAL WHO SEEKS RELIEF PURSUANT TO THIS10
SUBSECTION (9) IS ENTITLED TO ALL RELIEF NECESSARY TO MAKE THE11
INDIVIDUAL WHOLE. THE RELIEF MUST INCLUDE, BUT IS NOT LIMITED TO:12
(A) I
F THE INDIVIDUAL IS AN EMPLOYEE, REINSTATEMENT WITH13
THE SAME SENIORITY STATUS THE INDIVIDUAL WOULD HAVE HAD BUT FOR14
THE DISCRIMINATION, TWICE THE AMOUNT OF BACK PAY, AND INTEREST ON15
THE BACK PAY;16
(B) I
F THE INDIVIDUAL IS A CONTRACTOR, SUBCONTRACTOR, OR17
INDEPENDENT CONTRACTOR , REINSTATEMENT OF A CONTRACT OR18
SUBCONTRACT THAT WAS CANCELED , NONRENEWED, OR MODIFIED19
BECAUSE OF RETALIATION, WITH ALL COMPENSATION OR CONTRACTUAL20
CONSIDERATION THAT THE INDIVIDUAL WOULD HAVE RECEIVED HAD THE21
CONTRACT OR SUBCONTRACT NOT BEEN CANCELED , NONRENEWED, OR22
MODIFIED; AND23
(C) C
OMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A24
RESULT OF THE DISCRIMINATION OR RETALIATION , INCLUDING LITIGATION25
COSTS AND REASONABLE ATTORNEY FEES .26
(e) (I) T
HE COURT SHALL AWARD THE INDIVIDUAL NOT LESS THAN27
1119
-27- THE DAMAGES DESCRIBED IN SUBSECTION (9)(d)(II) OF THIS SECTION IF A1
DEFENDANT, EMPLOYER, OR OTHER PERSON RETALIATES AGAINST AN2
INDIVIDUAL BY BRINGING ANOTHER ACTION AGAINST THE INDIVIDUAL FOR :3
(A) A
CTS LATER DETERMINED TO BE LAWFUL ACTS ;4
(B) D
ISCLOSURE OF CONFIDENTIAL INFORMATION TO COUNSEL OR5
AN AGENT OR REPRESENTATIVE OF THE STATE OR POLITICAL SUBDIVISION6
PURSUANT TO THIS SUBSECTION (9);7
(C) V
IOLATING AN EMPLOYMENT CONTRACT , CONFIDENTIALITY8
AGREEMENT, NONDISCLOSURE AGREEMENT , OR OTHER AGREEMENT; OR9
(D) C
OMMITTING ANY OTHER TORT OR BREACH OF DUTY AND THE10
COURT HEARING THE ACTION DETERMINES BY A PREPONDERANCE OF THE11
EVIDENCE THAT THE DEFENDANT, EMPLOYER, OR OTHER PERSON BROUGHT12
THE LAWSUIT AGAINST THE INDIVIDUAL
FOR THE PURPOSE OF13
RETALIATING AGAINST THE INDIVIDUAL .14
(II)
IN ADDITION TO ANY OTHER REMEDY OR SHARE OF THE15
PROCEEDS OF THE ACTION TO WHICH THE INDIVIDUAL IS ENTITLED16
PURSUANT TO THIS SUBSECTION (9) AND REGARDLESS OF WHETHER THE17
INDIVIDUAL IS DETERMINED TO BE ENTITLED TO SHARE IN THE PROCEEDS18
OF THE ACTION OR CLAIM FILED PURSUANT TO SUBSECTION (4) OF THIS19
SECTION, IN ADDITION TO ANY OTHER CONSEQUENTIAL DAMAGES20
PERMITTED BY LAW, THE DAMAGES FOR A VIOLATION OF THIS SUBSECTION21
(9)(e)
MUST BE NOT LESS THAN:22
(A) T
WICE THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND COSTS23
IF THE DEFENDANT, EMPLOYER, OR OTHER PERSON BROUGHT THE LAWSUIT24
AGAINST THE INDIVIDUAL IN A COURT IN THE STATE OF COLORADO; OR25
(B) T
HREE TIMES THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND26
COSTS IF THE DEFENDANT, EMPLOYER, OR OTHER PERSON BROUGHT THE27
1119
-28- LAWSUIT IN A JURISDICTION OUTSIDE OF COLORADO.1
(f) (I) T
HE COURT HEARING THE ACTION BROUGHT PURSUANT TO2
SUBSECTION (4) OF THIS SECTION HAS JURISDICTION TO HEAR A PRIVATE3
ACTION OR MOTION FOR RETALIATION BROUGHT PURSUANT TO THIS4
SUBSECTION (9).5
(II) U
PON MOTION BY THE INDIVIDUAL, THE VENUE OF AN ACTION6
FILED IN ANOTHER COURT OF THE STATE OF COLORADO AGAINST THE7
INDIVIDUAL BY THE DEFENDANT , THE
EMPLOYER OF THE PERSON WHO8
BROUGHT THE ACTION PURSUANT TO SUBSECTION (4) OF THIS SECTION, OR9
OTHER PERSON ARISING OUT OF THE SUBJECT MATTER OF THE ACTION10
BROUGHT PURSUANT TO SUBSECTION (4) OF THIS SECTION MUST BE11
CHANGED TO THE COURT HEARING THE ACTION BROUGHT PURSUANT TO12
SUBSECTION (4) OF THIS SECTION.13
(10) Discovery in other actions. (a) I
F A
PERSON WHO BRINGS AN14
ACTION PURSUANT TO SUBSECTION (4) OF THIS SECTION IS A PARTY TO OR15
WITNESS IN AN ACTION OTHER THAN AN ACTION BROUGHT PURSUANT TO16
SUBSECTION (4) OF THIS SECTION, REFERRED TO IN THIS SUBSECTION (10)17
AS AN "OTHER ACTION", AND A PARTY IN THE OTHER ACTION SEEKS18
DISCOVERY FROM THE PERSON OF INFORMATION ABOUT OTHER LAWSUITS ,19
WHICH DISCOVERY WOULD REQUIRE THE PERSON TO DISCLOSE20
INFORMATION ABOUT AN ACTION FILED PURSUANT TO SUBSECTION (4) OF21
THIS SECTION WHILE THAT ACTION IS STILL UNDER SEAL , THE PERSON22
SHALL:23
(I) W
ITHIN A REASONABLE TIME, NOTIFY THE STATE OR POLITICAL24
SUBDIVISION INVESTIGATING THE ACTION BROUGHT PURSUANT TO25
SUBSECTION (4) OF THIS SECTION OF THE PENDING DISCOVERY REQUEST ;26
AND27
1119
-29- (II) RESPOND TO THE DISCOVERY REQUEST BY STATING ONLY THAT1
THE MATTER IS CONFIDENTIAL, WITHOUT FURTHER ELABORATION , AND2
SHALL MAINTAIN THAT RESPONSE UNTIL THE STATE OR POLITICAL3
SUBDIVISION ELECTS TO PROCEED OR NOT PROCEED WITH THE ACTION4
BROUGHT PURSUANT TO SUBSECTION (4) OF THIS SECTION OR UNTIL THE5
COURT LIFTS THE SEAL.6
(b) I
F NECESSARY, IN
ANY OTHER ACTION, A PERSON WHO7
BROUGHT THE ACTION PURSUANT TO SUBSECTION (4) OF THIS SECTION, 8
THE ATTORNEY GENERAL, OR THE PROSECUTING AUTHORITY MAY FILE AN9
EX PARTE MOTION, IN CAMERA AND UNDER SEAL, SEEKING A PROTECTIVE10
ORDER OR AN EXTENSION OF TIME FOR THE PERSON TO RESPOND TO A11
DISCOVERY REQUEST. IF A PARTY IN THE OTHER ACTION MOVES TO COMPEL12
AN ANSWER TO THE DISCOVERY , THE PERSON WHO BROUGHT THE ACTION13
PURSUANT TO SUBSECTION (4) OF THIS SECTION SHALL FILE, EX PARTE AND14
IN CAMERA, A RESPONSE TO THE MOTION TO COMPEL , IN WHICH THE15
ATTORNEY GENERAL OR PROSECUTING AUTHORITY MAY JOIN . THE16
RESPONSE TO THE MOTION TO COMPEL MUST REMAIN UNDER SEAL UNTIL17
SUCH TIME AS THE STATE OR POLITICAL SUBDIVISION ELECTS TO PROCEED18
OR NOT PROCEED WITH THE ACTION OR UNTIL SUCH TIME AS THE COURT19
LIFTS THE SEAL.20
(c) NOTWITHSTANDING ANY PROVISION OF THIS SUBSECTION (10)21
TO THE CONTRARY, INFORMATION ABOUT AN ACTION FILED PURSUANT TO22
SUBSECTION (4) OF THIS SECTION THAT IS PROTECTED BY THE23
DEFENDANT'S ATTORNEY-CLIENT PRIVILEGE IS NOT DISCOVERABLE IN ANY24
OTHER ACTION UNLESS THE PRIVILEGE WAS WAIVED, INADVERTENTLY OR25
OTHERWISE, BY THE PERSON WHO HOLDS THE PRIVILEGE; AN EXCEPTION26
TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF THE INFORMATION IS27
1119
-30- PERMITTED BY AN ATTORNEY PURSUANT TO 17 CFR 205.3 (d)(2), THE1
APPLICABLE COLORADO RULES OF PROFESSIONAL CONDUCT , OR2
OTHERWISE.3
24-31-1205. False claims action procedures - limitation on4
action - standard of proof. (1) A
CIVIL ACTION PURSUANT TO SECTION5
24-31-1204
MAY NOT BE BROUGHT AFTER THE LATER OF :6
(a) M
ORE THAN SIX YEARS AFTER THE DATE ON WHICH THE7
VIOLATION OF SECTION 24-31-1203 IS COMMITTED OR THE DATE ON WHICH8
THE LAST IN A SERIES OF SUCH ACTS OR PRACTICES OCCURRED ,9
WHICHEVER IS LATER; OR10
(b) M
ORE THAN THREE YEARS AFTER THE DATE ON WHICH FACTS11
MATERIAL TO THE RIGHT OF ACTION ARE KNOWN OR REASONABLY SHOULD12
HAVE BEEN KNOWN BY THE OFFICIAL OF THE STATE OR A POLITICAL13
SUBDIVISION CHARGED WITH RESPONSIBILITY TO ACT IN THE14
CIRCUMSTANCES, BUT IN NO EVENT MORE THAN TEN YEARS AFTER THE15
DATE ON WHICH THE VIOLATION OF SECTION 24-31-1203 WAS COMMITTED.16
(2) (a) I
F THE STATE OR A POLITICAL SUBDIVISION ELECTS TO17
INTERVENE AND PROCEED WITH AN ACTION BROUGHT PURSUANT TO18
SECTION 24-31-1204, THE STATE OR POLITICAL SUBDIVISION MAY FILE ITS19
OWN COMPLAINT OR AMEND THE
ORIGINAL COMPLAINT TO:20
(I) C
LARIFY AND ADD DETAIL, AND ADD ADDITIONAL DEFENDANTS ,21
TO THE CLAIMS IN WHICH THE STATE OR POLITICAL SUBDIVISION IS22
INTERVENING; AND23
(II) A
DD ANY ADDITIONAL CLAIMS AND DEFENDANTS WITH24
RESPECT TO WHICH THE STATE OR POLITICAL SUBDIVISION CONTENDS IT IS25
ENTITLED TO RELIEF.26
(b) F
OR STATUTE OF LIMITATIONS PURPOSES, ANY PLEADINGS BY27
1119
-31- THE STATE OR POLITICAL SUBDIVISION RELATE BACK TO THE FILING DATE1
OF THE ORIGINAL COMPLAINT FILED BY A PERSON PURSUANT TO SECTION2
24-31-1204 (4), TO THE EXTENT THAT THE STATE 'S OR POLITICAL3
SUBDIVISION'S CLAIM ARISES OUT OF THE CONDUCT , TRANSACTIONS, OR4
OCCURRENCES SET FORTH , OR ATTEMPTED TO BE SET FORTH , IN THE5
ORIGINAL COMPLAINT.6
(3) I
N AN ACTION BROUGHT PURS UANT TO SECTION 24-31-1204,7
THE STATE, POLITICAL SUBDIVISION, OR
PERSON WHO BROUGHT THE8
ACTION PURSUANT TO SECTION 24-31-1204 (4) MUST PROVE ALL9
ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION, INCLUDING DAMAGES, BY10
A PREPONDERANCE OF THE EVIDENCE .11
(4) N
OTWITHSTANDING ANY OTHER PROVISION OF LAW , THE12
C
OLORADO RULES OF CRIMINAL PROCEDURE , OR THE COLORADO RULES OF13
EVIDENCE, A FINAL JUDGMENT RENDERED IN FAVOR OF THE STATE OR A14
POLITICAL SUBDIVISION IN A CRIMINAL PROCEEDING CHARGING FRAUD OR15
FALSE STATEMENTS, WHETHER UPON A VERDICT AFTER TRIAL OR UPON A16
PLEA OF GUILTY OR NOLO CONTENDERE , SHALL ESTOP THE DEFENDANT17
FROM DENYING THE ESSENTIAL ELEMENTS OF THE OFFENSE IN ANY ACTION18
THAT INVOLVES THE SAME TRANSACTION AS IN THE CRIMINAL PROCEEDING19
AND THAT IS BROUGHT PURSUANT TO SECTION 24-31-1204.20
24-31-1206. Jurisdiction. A
N ACTION DESCRIBED IN THIS PART 1221
MAY BE BROUGHT IN ANY JUDICIAL DISTRICT IN WHICH THE DEFENDANT22
OR, IN THE CASE OF MULTIPLE DEFENDANTS, ANY ONE DEFENDANT CAN BE23
FOUND, RESIDES, OR TRANSACTS BUSINESS , OR IN WHICH AN ACT24
PROSCRIBED BY SECTION 24-31-1203 OCCURRED.
A PERSON BRINGING AN25
ACTION PURSUANT TO THIS PART 12 SHALL FILE THE COMPLAINT IN A26
DISTRICT COURT OR A FEDERAL COURT WITH JURISDICTION OVER THE27
1119
-32- ACTION AND SHALL NOT FILE THE COMPLAINT IN ANY OTHER COURT. THE1
APPROPRIATE DISTRICT COURT SHALL ISSUE A SUMMONS AS REQUIRED BY2
THE COLORADO RULES OF CIVIL PROCEDURE AND SERVE THE SUMMONS AT3
ANY PLACE.4
24-31-1207. False claims civil investigation demands.5
(1) W
HEN THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO BELIEVE6
THAT ANY PERSON, WHETHER IN THIS STATE OR ELSEWHERE, HAS ENGAGED7
IN OR IS ENGAGING IN ANY VIOLATION OF SECTION 24-31-1203, THE8
ATTORNEY GENERAL MAY :9
(a) R
EQUEST THE PERSON FILE A STATEMENT OR REPORT IN10
WRITING UNDER OATH OR OTHERWISE , ON FORMS PRESCRIBED BY THE11
ATTORNEY GENERAL, AS TO ALL FACTS AND CIRCUMSTANCES CONCERNING12
THE ALLEGED VIOLATIONS BY THE PERSON AND ANY OTHER DATA AND13
INFORMATION THE ATTORNEY GENERAL DEEMS NECESSARY ;
EXCEPT THAT14
THE PERSON IS NOT REQUIRED TO DISCLOSE ANY INFORMATION THAT IS15
PROTECTED BY THE PERSON'S ATTORNEY-CLIENT PRIVILEGE UNLESS THE16
PRIVILEGE WAS WAIVED, INADVERTENTLY OR OTHERWISE, BY THE PERSON17
WHO HOLDS THE PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR18
DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN ATTORNEY19
PURSUANT TO 17 CFR 205.3 (d)(2), THE APPLICABLE COLORADO RULES OF20
PROFESSIONAL CONDUCT, OR OTHERWISE.21
(b) E
XAMINE UNDER OATH ANY PERSON IN CONNECTION WITH THE22
ALLEGED VIOLATIONS;23
(c) E
XAMINE ANY PROPERTY OR SAMPLE THEREOF ,
OR ANY24
NONPRIVILEGED RECORD, BOOK, DOCUMENT, ACCOUNT, OR PAPER THE25
ATTORNEY GENERAL DEEMS NECESSARY ;26
(d) M
AKE TRUE COPIES, AT THE EXPENSE OF THE ATTORNEY27
1119
-33- GENERAL, OF ANY NONPRIVILEGED RECORD, BOOK, DOCUMENT, ACCOUNT,1
OR PAPER EXAMINED PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION,2
WHICH COPIES MAY BE OFFERED INTO EVIDENCE IN LIEU OF THE ORIGINALS3
THEREOF IN AN ACTION BROUGHT PURSUANT TO THIS PART 12; AND4
(e) P
URSUANT TO ANY ORDER OF ANY DISTRICT COURT , IMPOUND5
ANY SAMPLE OF PROPERTY THAT IS MATERIAL TO ANY ALLEGED VIOLATION6
OF THIS PART 12 AND RETAIN THE SAME IN THE ATTORNEY GENERAL 'S7
POSSESSION UNTIL COMPLETION OF ALL PROCEEDINGS UNDERTAKEN8
PURSUANT TO THIS PART 12. A DISTRICT COURT SHALL NOT ISSUE AN9
ORDER DESCRIBED IN THIS SUBSECTION (1)(e) WITHOUT GIVING FULL10
OPPORTUNITY TO THE ACCUSED TO BE HEARD AND UNLESS THE ATTORNEY11
GENERAL HAS PROVEN BY CLEAR AND CONVINCING EVIDENCE THAT THE12
ORDER WILL NOT IMPAIR THE BUSINESS ACTIVITIES OF THE PERSON TO13
WHOM THE ORDER IS DIRECTED.14
(2) W
HEN THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO15
BELIEVE THAT A PERSON, WHETHER IN THIS STATE OR ELSEWHERE , HAS16
ENGAGED IN OR IS ENGAGING IN A VIOLATION OF SECTION 24-31-1203, THE17
ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO REQUIRE THE18
ATTENDANCE OF WITNESSES OR THE PRODUCTION OF DOCUMENTS ,19
ADMINISTER OATHS, CONDUCT HEARINGS IN AID OF ANY INVESTIGATION OR20
INQUIRY, AND PRESCRIBE SUCH FORMS AS MAY BE NECESSARY TO21
ADMINISTER THIS PART 12.22
(3) T
HE ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO ANY23
PUBLIC OR PRIVATE CORPORATION OR PARTNERSHIP OR ASSOCIATION OR24
GOVERNMENTAL ENTITY TO PRODUCE WITNESSES TO APPEAR AND GIVE25
ORAL TESTIMONY AT INVESTIGATIVE HEARINGS . THE SUBPOENAS MAY26
DESIGNATE WITH REASONABLE PARTICULARITY THE MATTERS ON WHICH27
1119
-34- EXAMINATION IS REQUESTED. IN RESPONSE TO THE SUBPOENA, THE ENTITY1
SHALL DESIGNATE ONE OR MORE OFFICERS , DIRECTORS, OR MANAGING2
AGENTS, OR DESIGNATE OTHER PERSONS, TO TESTIFY ON ITS BEHALF.3
(4) A
NOTICE OR SUBPOENA MAY BE SERVED IN THE MANNER4
PRESCRIBED BY LAW OR AS PROVIDED IN RULE 4 OF THE COLORADO RULES5
OF CIVIL PROCEDURE.6
(5) (a) I
F THE RECORDS OF A PERSON WHO HAS BEEN ISSUED A7
SUBPOENA ARE LOCATED OUTSIDE THIS STATE , THE PERSON SHALL EITHER:8
(I) M
AKE THEM AVAILABLE TO THE ATTORNEY GENERAL EITHER9
ELECTRONICALLY OR AT A CONVENIENT LOCATION WITHIN THIS STATE ; OR10
(II) P
AY THE REASONABLE AND NECESSARY EXPENSES FOR THE11
ATTORNEY GENERAL , OR THE ATTORNEY GENERAL 'S DESIGNEE, TO12
EXAMINE THE RECORDS AT THE PLACE WHERE THEY ARE MAINTAINED .13
(b) T
HE ATTORNEY GENERAL MAY DESIGNATE REPRESENTATIVES ,14
INCLUDING COMPARABLE OFFICIALS OF THE STATE IN WHICH THE RECORDS15
ARE LOCATED, TO INSPECT THE RECORDS ON BEHALF OF THE ATTORNEY16
GENERAL.17
(6) I
F ANY PERSON FAILS TO COOPERATE WITH ANY INVESTIGATION18
PURSUANT TO THIS SECTION OR FAILS TO OBEY ANY SUBPOENA ISSUED19
PURSUANT TO THIS SECTION, THE ATTORNEY GENERAL MAY APPLY TO THE20
APPROPRIATE DISTRICT COURT FOR AN APPROPRIATE ORDER TO21
EFFECTUATE THE PURPOSES OF THIS PART 12. AT THE REQUEST OF THE22
ATTORNEY GENERAL, THE APPLICATION MAY BE FILED IN CAMERA AND23
KEPT CONFIDENTIAL TO MAINTAIN THE CONFIDENTIALITY OF THE24
ATTORNEY GENERAL'S INVESTIGATION. THE APPLICATION MUST STATE25
THAT THERE ARE REASONABLE GROUNDS TO BELIEVE THAT THE ORDER26
APPLIED FOR IS NECESSARY TO INVESTIGATE A VIOLATION OF THIS PART 12.27
1119
-35- IF THE COURT IS SATISFIED THAT REASONABLE GROUNDS EXIST , THE COURT1
IN ITS ORDER MAY:2
(a) G
RANT APPROPRIATE INJUNCTIVE RELIEF;3
(b) R
EQUIRE ATTENDANCE OF OR THE PRODUCTION OF DOCUMENTS4
BY THE PERSON, OR BOTH;5
(c) G
RANT OTHER OR FURTHER RELIEF AS MAY BE NECESSARY TO6
OBTAIN COMPLIANCE BY THE PERSON .7
24-31-1208. Rule-making. T
HE ATTORNEY GENERAL MAY8
PROMULGATE RULES NECESSARY TO IMPLEMENT THIS PART 12.9
24-31-1209. Use of recoveries - false claims recovery cash fund10
- creation. (1) T
HE STATE TREASURER SHALL TRANSFER ALL PROCEEDS11
RETAINED BY THE STATE FROM A FALSE CLAIMS ACTION BROUGHT12
PURSUANT TO THIS PART 12 TO THE FALSE CLAIMS RECOVERY CASH FUND ,13
WHICH IS HEREBY CREATED.14
(2) A
NY MONEY IN THE FUND NOT EXPENDED FOR THE PURPOSE OF15
THIS SECTION MAY BE INVESTED BY THE STATE TREASURER AS PROVIDED16
BY LAW. ALL INTEREST AND INCOME DERIVED FROM INVESTMENT AND17
DEPOSIT OF MONEY IN THE FUND SHALL BE CREDITED TO THE FUND .18
(3) (a) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL19
ASSEMBLY, THE DEPARTMENT MAY EXPEND MONEY FROM THE FUND FOR20
NECESSARY ACTUAL COSTS OF CARRYING OUT ITS DUTIES PURSUANT TO21
THIS PART 12.22
(b) (I) W
HEN PROCEEDS RETAINED BY THE STATE FROM A FALSE23
CLAIMS ACTION ARE DEPOSITED INTO THE FUND , THE ATTORNEY GENERAL24
SHALL DETERMINE THE AMOUNT OF THE PROCEEDS THAT SHOULD REMAIN25
IN THE FUND FOR USE BY THE DEPARTMENT FOR THE COSTS OF CARRYING26
OUT ITS DUTIES PURSUANT TO THIS PART
12 AND THE AMOUNT OF ANY27
1119
-36- PROCEEDS DEPOSITED INTO THE FUND THAT ARE ATTRIBUTABLE TO A1
POLITICAL SUBDIVISION.2
(II) I
F THE AMOUNT OF THE PROCEEDS IS EQUAL TO OR EXCEEDS3
THE AMOUNT OF THE FALSE CLAIM PLUS THE DEPARTMENT 'S COSTS, THE4
ATTORNEY GENERAL SHALL DIRECT THE STATE TREASURER TO
TRANSFER5
TO THE ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID AN6
AMOUNT EQUAL TO THE FALSE CLAIM . IF ALL OR PART OF THE PROCEEDS7
ARE ATTRIBUTABLE TO A POLITICAL SUBDIVISION, THE ATTORNEY8
GENERAL SHALL DIRECT THE TREASURER TO PAY TO THE POLITICAL9
SUBDIVISION, AS DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION, AN10
AMOUNT EQUAL TO THE FALSE CLAIM .11
(III) I
F THE AMOUNT OF THE PROCEEDS IS LESS THAN THE AMOUNT12
OF THE FALSE CLAIM PLUS THE DEPARTMENT 'S COSTS, THE ATTORNEY13
GENERAL SHALL DIRECT THE STATE TREASURER TO
TRANSFER TO THE14
ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID A PRO -RATED15
AMOUNT BASED ON THE ACTUAL RECOVERY . IF ALL OR PART OF THE16
PROCEEDS ARE ATTRIBUTABLE TO A POLITICAL SUBDIVISION , THE17
ATTORNEY GENERAL SHALL DIRECT THE TREASURER TO PAY TO THE18
POLITICAL SUBDIVISION, AS DESCRIBED IN SUBSECTION (3)(c) OF THIS19
SECTION, A PRO-RATED AMOUNT BASED ON THE ACTUAL RECOVERY .20
(c) NO LATER THAN SEVEN DAYS AFTER THE ATTORNEY GENERAL21
DIRECTS THE STATE TREASURER TO MAKE A PAYMENT TO A POLITICAL22
SUBDIVISION PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, THE23
STATE TREASURER SHALL ISSUE A WARRANT TO BE PAID UPON DEMAND24
FROM THE FUND TO THE POLITICAL SUBDIVISION IN THE AMOUNT SPECIFIED25
BY THE ATTORNEY GENERAL .26
(4) A
NY UNEXPENDED AND UNENCUMBERED MONEY REMAINING27
1119
-37- IN THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN THE FUND1
AND SHALL NOT BE CREDITED OR TRANSFERRED TO ANOTHER FUND .2
24-31-1210. No limitations on common law authority -3
medicaid fraud control. N
OTHING IN THIS PART 12 AFFECTS, LIMITS, OR4
SUPPLANTS THE COMMON LAW AUTHORITY OF THE ATTORNEY GENERAL OR5
THE DEPARTMENT TO INVESTIGATE AND PROSECUTE MEDICAID FRAUD6
PURSUANT TO PART 8 OF THIS ARTICLE 31.7
24-31-1211. False claims act report. (1) ON OR BEFORE8
JANUARY 15, 2024, AND ON OR BEFORE EACH JANUARY 15 THEREAFTER,9
THE ATTORNEY GENERAL SHALL SUBMIT A WRITTEN REPORT TO THE HOUSE10
OF REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE, THE11
HOUSE OF REPRESENTATIVES JUDICIARY COMMITTEE, THE SENATE12
BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE , AND THE SENATE13
JUDICIARY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, CONCERNING14
CLAIMS BROUGHT PURSUANT TO THIS PART 12 DURING THE PREVIOUS15
FISCAL YEAR. THE REPORT MUST INCLUDE, BUT IS NOT LIMITED TO:16
(a) THE NUMBER OF ACTIONS BROUGHT BY THE ATTORNEY17
GENERAL AND THE DISPOSITION OF THE ACTIONS ;18
(b) THE AMOUNT OF PROCEEDS RECOVERED BY THE STATE19
THROUGH SETTLEMENT OR JUDGMENT IN AN ACTION BROUGHT PURSUANT20
TO THIS PART 12, INCLUDING:21
(I) THE CASE NUMBER AND PARTIES FOR EACH ACTION IN WHICH22
PROCEEDS WERE RECOVERED ;23
(II) THE AMOUNT OF PROCEEDS RECOVERED IN EACH CASE,24
CATEGORIZED BY THE AMOUNT RECOVERED AS DAMAGES , PENALTIES, AND25
LITIGATION COSTS; AND26
(III) IF APPLICABLE, THE PERCENTAGE OF THE PROCEEDS27
1119
-38- RECOVERED AND THE TOTAL AMOUNT AWARDED TO A PRIVATE PERSON1
WHO BROUGHT THE ACTION .2
(c) THE NUMBER OF ACTIONS BROUGHT BY A PERSON OTHER THAN3
THE ATTORNEY GENERAL IN WHICH THE ATTORNEY GENERAL DID NOT4
INTERVENE, WHETHER THE ACTIONS WERE CONTINUED BY THE OTHER5
PERSON, AND THE DISPOSITION OF THE ACTIONS;6
(d) THE AMOUNT OF PROCEEDS, INCLUDING ANY LITIGATION COSTS7
AND ATTORNEY FEES, RECOVERED THROUGH SETTLEMENT OR JUDGMENT8
IN ACTIONS BROUGHT BY A PERSON OTHER THAN THE ATTORNEY GENERAL ;9
AND10
(e) THE AMOUNT EXPENDED BY THE STATE FOR INVESTIGATION11
AND LITIGATION OF FALSE CLAIMS PURSUANT TO THIS PART 12 AND ALL12
OTHER COSTS RELATED TO THIS PART 12.13
(2) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE14
REPORTING REQUIREMENT DESCRIBED IN THIS SECTION CONTINUES15
INDEFINITELY.16
SECTION 3. In Colorado Revised Statutes, 2-3-109, add (3) as17
follows:18
2-3-109. Emergency reports. (3) I
F THE STATE AUDITOR IN THE19
COURSE OF AN AUDIT FINDS EVIDENCE OF APPARENTLY FALSE CLAIMS20
RELATED TO PUBLIC FUNDS OR PROPERTY , THE STATE AUDITOR SHALL21
IMMEDIATELY REPORT SUCH TRANSACTIONS TO THE COMMITTEE AND22
SHALL FILE A WRITTEN COPY OF THE REPORT WITH THE ATTORNEY23
GENERAL.24
SECTION 4. In Colorado Revised Statutes, 2-3-110.5, amend25
(3)(a)(II) as follows:26
2-3-110.5. Fraud hotline - investigations - confidentiality -27
1119
-39- access to records - definitions. (3) (a) (II) The state auditor shall1
forward all hotline calls alleging fraud by a medicaid recipient to the2
department of health care policy and financing, and all calls alleging3
fraud by a medicaid provider or contractor to the medicaid fraud control4
unit of the office of the attorney general,
AND ALL CALLS ALLEGING FRAUD5
IN VIOLATION OF THE "COLORADO FALSE CLAIMS ACT", PART 12 OF6
ARTICLE 31 OF TITLE 24, TO THE ATTORNEY GENERAL UNLESS THE7
ALLEGATION RELATES TO A STATE EMPLOYEE IN THE PERFORMANCE OF8
THE EMPLOYEE'S DUTIES.9
SECTION 5. Appropriation. For the 2022-23 state fiscal year,10
$13,568 is appropriated to the legislative department for use by the office11
of the state auditor. This appropriation is from the general fund. The12
office may use this appropriation to implement this act.13
SECTION 6. Act subject to petition - effective date. This act14
takes effect at 12:01 a.m. on the day following the expiration of the15
ninety-day period after final adjournment of the general assembly; except16
that, if a referendum petition is filed pursuant to section 1 (3) of article V17
of the state constitution against this act or an item, section, or part of this18
act within such period, then the act, item, section, or part will not take19
effect unless approved by the people at the general election to be held in20
November 2022 and, in such case, will take effect on the date of the21
official declaration of the vote thereon by the governor.22
1119
-40-