Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0204.01 Conrad Imel x2313
HOUSE BILL 22-1119
House Committees Senate Committees
Judiciary Judiciary
Finance Finance
Appropriations 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"):
SENATE
Amended 2nd Reading
May 6, 2022
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" INCLUDES THE FAILURE TO PAY OR THE
17
UNDERPAYMENT OF AN OBLIGATION OWED TO THE STATE .18
(c) "CLAIM" DOES NOT INCLUDE A REQUEST OR DEMAND FOR19
MONEY OR PROPERTY THAT THE STATE OR A POLITICAL SUBDIVISION HAS20
PAID:21
(I) T
O AN INDIVIDUAL AS COMPENSATION FOR EMPLOYMENT BY22
THE STATE OR POLITICAL SUBDIVISION;23
(II) A
S AN INCOME SUBSIDY WITH NO RESTRICTIONS ON THAT24
INDIVIDUAL'S USE OF THE MONEY OR PROPERTY;25
(III) T
O AN INDIVIDUAL AS PART OF A GOVERNMENT ASSISTANCE26
PROGRAM IN AN AMOUNT LESS THAN
TEN THOUSAND DOLLARS IN A27
1119
-4- CALENDAR YEAR; OR1
(IV) T
O A PERSON
UNDER THE "COLORADO MEDICAL ASSISTANCE2
A
CT", ARTICLES 4, 5, AND 6 OF TITLE 25.5.3
(2) "D
EPARTMENT" MEANS THE DEPARTMENT OF LAW .4
(3) "F
UND" MEANS THE FALSE CLAIMS RECOVERY CASH FUND5
CREATED IN SECTION 24-31-1209.6
(4) (a) "K
NOWING" OR "KNOWINGLY" MEAN THAT A PERSON, WITH7
RESPECT TO INFORMATION ABOUT A CLAIM :8
(I) H
AS ACTUAL KNOWLEDGE OF THE
FALSITY OF THE9
INFORMATION;10
(II) A
CTS IN DELIBERATE IGNORANCE OF THE TRUTH OR FALSITY OF11
THE INFORMATION; OR12
(III) A
CTS IN RECKLESS DISREGARD OF THE TRUTH OR FALSITY OF13
THE INFORMATION.14
(b) "K
NOWING" OR "KNOWINGLY" DOES NOT REQUIRE PROOF OF15
SPECIFIC INTENT TO DEFRAUD.
A PERSON WHO ACTS MERELY NEGLIGENTLY16
WITH RESPECT TO INFORMATION IS NOT DEEMED TO HAVE ACTED17
KNOWINGLY, UNLESS THE PERSON ACTS WITH RECKLESS DISREGARD OF18
THE TRUTH OR FALSITY OF THE INFORMATION .19
(5) "M
ATERIAL" MEANS HAVING A NATURAL TENDENCY TO20
INFLUENCE, OR BE CAPABLE OF INFLUENCING, THE PAYMENT OR RECEIPT21
OF MONEY OR PROPERTY.22
(6) "O
BLIGATION" MEANS AN ESTABLISHED DUTY , WHETHER OR23
NOT FIXED, ARISING FROM AN EXPRESS OR IMPLIED CONTRACTUAL ,24
GRANTOR-GRANTEE, OR LICENSOR-LICENSEE RELATIONSHIP; FROM A25
FEE-BASED OR SIMILAR RELATIONSHIP; FROM STATUTE OR REGULATION; OR26
FROM THE RETENTION OF ANY OVERPAYMENT .27
1119
-5- (7) "PERSON" MEANS ANY INDIVIDUAL, CORPORATION, BUSINESS1
TRUST, ESTATE, TRUST, LIMITED LIABILITY COMPANY , PARTNERSHIP,2
ASSOCIATION, OR OTHER NONGOVERNMENTAL LEGAL ENTITY .3
(8) "P
OLITICAL SUBDIVISION" HAS THE SAME MEANING AS SET
4
FORTH IN SECTION 24-72-202.5
(9) "P
ROCEEDS" MEANS ALL MONEY , PROPERTY, DAMAGES,6
DOUBLE DAMAGES, TREBLE DAMAGES, CIVIL PENALTIES, AND PAYMENTS7
FOR COSTS OF COMPLIANCE , INCLUDING REASONABLE COSTS AND8
ATTORNEY FEES, REALIZED BY THE STATE
WHETHER AS A RESULT OF ANY9
SETTLEMENT OF OR JUDGMENT ENTERED IN ANY ACTION BROUGHT10
PURSUANT TO THIS PART 12.11
12
13
24-31-1203. False claims - civil liability for certain acts -14
penalty - exception. (1) S
UBJECT TO SUBSECTION (2) OF THIS SECTION15
AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (5) OF THIS SECTION,16
A PERSON IS LIABLE TO THE STATE
FOR A CIVIL PENALTY OF NOT LESS17
THAN ELEVEN THOUSAND EIGHT HUNDRED DOLLARS AND NOT MORE THAN18
TWENTY-THREE THOUSAND SIX HUNDRED DOLLARS PER VIOLATION, PLUS19
THREE TIMES THE AMOUNT OF DAMAGES THAT THE STATE SUSTAINS20
BECAUSE OF THE ACT OF THAT PERSON , IF THAT PERSON:21
(a) K
NOWINGLY PRESENTS, OR CAUSES TO BE PRESENTED, A FALSE22
OR FRAUDULENT CLAIM FOR PAYMENT OR APPROVAL ;23
(b) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A24
FALSE RECORD OR STATEMENT MATERIAL TO A FALSE OR FRAUDULENT25
CLAIM;26
(c) H
AS POSSESSION, CUSTODY, OR CONTROL OF PROPERTY OR27
1119
-6- MONEY USED, OR TO BE USED, BY THE STATE OR POLITICAL SUBDIVISION1
AND KNOWINGLY DELIVERS, OR CAUSES TO BE DELIVERED, LESS THAN ALL2
OF THE MONEY OR PROPERTY;3
(d) A
UTHORIZES THE MAKING OR DELIVERY OF A DOCUMENT4
CERTIFYING RECEIPT OF PROPERTY USED, OR TO BE USED, BY THE STATE OR5
POLITICAL SUBDIVISION AND, WITH THE INTENT TO DEFRAUD THE STATE OR6
POLITICAL SUBDIVISION, MAKES OR DELIVERS THE RECEIPT WITHOUT7
COMPLETELY KNOWING THAT THE INFORMATION ON THE RECEIPT IS TRUE ;8
(e) K
NOWINGLY BUYS, OR RECEIVES AS A PLEDGE OF AN9
OBLIGATION OR DEBT, PUBLIC PROPERTY FROM AN OFFICER OR EMPLOYEE10
OF THE STATE OR POLITICAL SUBDIVISION WHO LAWFULLY MAY NOT SELL11
OR PLEDGE THE PROPERTY;12
(f) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A13
FALSE RECORD OR STATEMENT MATERIAL TO AN OBLIGATION TO PAY OR14
TRANSMIT MONEY OR PROPERTY TO THE STATE OR POLITICAL SUBDIVISION ,15
OR KNOWINGLY CONCEALS OR KNOWINGLY AND IMPROPERLY AVOIDS OR16
DECREASES AN OBLIGATION TO PAY OR TRANSMIT MONEY OR PROPERTY TO17
THE STATE OR POLITICAL SUBDIVISION;
18
(g) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED,
19
A FALSE RECORD OR STATEMENT RESULTING IN THE UNDERPAYMENT OF20
PREMIUMS OWED TO THE UNEMPLOYMENT COMPENSATION FUND21
ESTABLISHED IN SECTION 8-77-101 OR IN THE PAYMENT OF22
UNEMPLOYMENT INSURANCE BENEFITS OF MORE THAN FIFTEEN THOUSAND23
DOLLARS IN A CALENDAR YEAR; OR24
(h) CONSPIRES TO COMMIT A VIOLATION OF SUBSECTIONS (1)(a) TO25
(1)(g) OF THIS SECTION.26
(2) (a) NOTWITHSTANDING THE AMOUNT OF DAMAGES27
1119
-7- AUTHORIZED IN SUBSECTION (1) OF THIS SECTION, FOR A PERSON WHO1
VIOLATES SUBSECTION (1) OF THIS SECTION, THE COURT MAY ASSESS2
REDUCED DAMAGES AND PENALTIES AS DESCRIBED IN SUBSECTION (2)(b)3
OR (2)(c) OF THIS SECTION IF THE COURT FINDS THAT:4
(I) THE PERSON WHO COMMITTED THE VIOLATION FURNISHED TO5
THE OFFICIALS OF THE STATE OR POLITICAL SUBDIVISION RESPONSIBLE FOR6
INVESTIGATING FALSE CLAIMS VIOLATIONS ALL INFORMATION ABOUT THE7
VIOLATION KNOWN TO THE PERSON AND FURNISHED SAID INFORMATION8
WITHIN THIRTY DAYS AFTER THE DATE ON WHICH THE PERSON FIRST9
LEARNED OF A POTENTIAL VIOLATION ;10
(II) AT THE TIME THE PERSON FURNISHED THE INFORMATION11
ABOUT THE VIOLATION TO THE OFFICIALS OF THE STATE OR POLITICAL12
SUBDIVISION, THE PERSON DID NOT HAVE ACTUAL OR CONSTRUCTIVE13
KNOWLEDGE OF THE EXISTENCE OF AN INVESTIGATION INTO THE14
VIOLATION; AND15
(III) THE PERSON FULLY COOPERATED WITH ANY INVESTIGATION16
OF THE VIOLATION BY THE STATE,17
(b) IF A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION18
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE19
STATE OR POLITICAL SUBDIVISION BEFORE A CRIMINAL PROSECUTION , CIVIL20
ACTION, OR ADMINISTRATIVE ACTION WAS COMMENCED WITH RESPECT TO21
THE VIOLATION, THE COURT SHALL ASSESS ONE AND ONE-HALF THE22
AMOUNT OF ACTUAL DAMAGES RESULTING FROM THE FALSE CLAIM,23
INCLUDING INTEREST FROM THE DATE OF THE FRAUD TO THE DATE OF FULL24
REPAYMENT OF ALL DAMAGES , THAT THE STATE OR POLITICAL25
SUBDIVISION SUSTAINS BECAUSE OF THE VIOLATION AND A CIVIL PENALTY26
OF NOT LESS THAN FIVE THOUSAND NINE HUNDRED DOLLARS AND NOT27
1119
-8- MORE THAN ELEVEN THOUSAND EIGHT HUNDRED DOLLARS PER VIOLATION .1
(c) IF A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION2
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE3
STATE WHILE A CRIMINAL PROSECUTION, CIVIL ACTION, OR4
ADMINISTRATIVE ACTION CONCERNING THE VIOLATION WAS UNDER SEAL5
PURSUANT TO SECTION 24-31-1204 (3)(b), THE COURT SHALL ASSESS6
DOUBLE THE AMOUNT OF ACTUAL DAMAGES RESULTING FROM THE FALSE7
CLAIM, INCLUDING INTEREST FROM THE DATE OF THE FRAUD TO THE DATE8
OF FULL REPAYMENT OF ALL DAMAGES, THAT THE STATE OR POLITICAL9
SUBDIVISION SUSTAINS BECAUSE OF THE VIOLATION AND A CIVIL PENALTY10
OF NOT LESS THAN SEVEN THOUSAND EIGHT HUNDRED DOLLARS AND NOT11
MORE THAN FIFTEEN THOUSAND SEVEN HUNDRED DOLLARS PER12
VIOLATION.13
(d) THE ATTORNEY GENERAL MAY DETERMINE WHETHER A PERSON14
MEETS THE CRITERIA DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION15
AND SUBMIT THE DETERMINATION AND REASONING TO THE COURT, WHICH16
THE COURT MAY CONSIDER WHEN MAKING A FINDING AS TO WHETHER THE17
PERSON SATISFIES THE CRITERIA DESCRIBED IN SUBSECTION (2)(a) OF THIS18
SECTION.19
(3) A
NY INFORMATION FURNISHED PURSUANT TO SUBSECTION (2)20
OF THIS SECTION IS EXEMPT FROM DISCLOSURE PURSUANT TO THE21
"C
OLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF THIS TITLE22
24.23
(4) A
PERSON WHO VIOLATES THIS SECTION IS ALSO LIABLE TO THE24
STATE
FOR REASONABLE ATTORNEY FEES AND THE COSTS INCURRED25
DURING THE ENFORCEMENT OF THIS PART 12.26
(5) T
HIS SECTION DOES NOT APPLY TO CLAIMS , RECORDS, OR27
1119
-9- STATEMENTS MADE PURSUANT TO TITLE 39.1
(6) (a) THE MAXIMUM AND MINIMUM AMOUNTS FOR THE CIVIL2
PENALTIES DESCRIBED IN THIS SECTION MUST BE ADJUSTED FOR INFLATION3
ON JULY 1, 2023, AND EACH JULY 1 THEREAFTER. THE ADJUSTMENT MADE4
PURSUANT TO THIS SUBSECTION (6) MUST BE ROUNDED UPWARD OR5
DOWNWARD TO THE NEAREST TEN-DOLLAR INCREMENT. THE SECRETARY6
OF STATE SHALL CERTIFY THE ADJUSTED MAXIMUM AND MINIMUM7
AMOUNTS FOR CIVIL PENALTIES WITHIN FOURTEEN DAYS AFTER THE8
APPROPRIATE INFORMATION IS AVAILABLE .9
(b) FOR EACH ACTION BROUGHT PURSUANT TO THIS PART 12, THE10
APPLICABLE MINIMUM AND MAXIMUM AM OUNTS FOR A CIVIL PENALTY ARE11
THE AMOUNTS IN EFFECT ON THE DATE THE CAUSE OF ACTION ACCRUES .12
(c) AS USED IN THIS SECTION, "INFLATION" MEANS THE ANNUAL13
PERCENTAGE CHANGE IN THE DENVER-AURORA-LAKEWOOD CONSUMER14
PRICE INDEX, OR ITS APPLICABLE SUCCESSOR INDEX, PUBLISHED BY THE15
UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS .16
(7) FOR ACCOUNTING PURPOSES, A FINE OR PENALTY RECEIVED BY17
THE STATE PURSUANT TO THIS PART 12 IS A DAMAGE AWARD.18
(8) (a) SUBJECT TO SECTION 24-31-1204 (4)(e), IF THE ATTORNEY19
GENERAL HAS AUTHORITY TO BRING OR INTERVENE IN A CIVIL ACTION20
PURSUANT TO THIS PART 12, THE ATTORNEY GENERAL MAY ACCEPT21
FROM A PERSON ALLEGED TO HAVE VIOLATED SUBSECTION (1) OF THIS22
SECTION, IN LIEU OF OR AS A PART OF A CIVIL ACTION, AN ASSURANCE OF23
DISCONTINUANCE OR A CONSENT ORDER APPROVED BY A COURT OF24
COMPETENT JURISDICTION OF THE ALLEGED VIOLATION OF THIS PART 12.25
THE ASSURANCE OR CONSENT ORDER MAY INCLUDE A STIPULATION FOR26
THE VOLUNTARY PAYMENT BY THE ALLEGED VIOLATOR OF ANY RELIEF27
1119
-10- AUTHORIZED BY THIS PART 12, INCLUDING PAYMENT FOR INVESTIGATION1
AND LITIGATION COSTS INCURRED BY THE ATTORNEY GENERAL OR2
PRIVATE PERSON WHO BROUGHT AN ACTION PURSUANT TO SECTION3
24-31-1204 (3), AND ACTUAL DAMAGES RESULTING FROM THE FALSE4
CLAIM PLUS ANY AUTHORIZED MULTIPLIER , INTEREST, AND CIVIL MONEY5
PENALTY.6
(b) A
N ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER
7
ACCEPTED BY THE ATTORNEY GENERAL PRECLUDES A SEPARATE ACTION8
PURSUANT TO SECTION 24-31-1204 (3) BY ANY PERSON BASED ON THE9
SAME FACTUAL CIRCUMSTANCES , EXCEPT FOR AN ACTION BASED ON A10
VIOLATION OF THE ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER .11
(c) AN ASSURANCE OF DISCONTINUANCE ACCEPTED BY THE12
ATTORNEY GENERAL AND ANY CONSENT ORDER FILED WITH THE COURT13
AS A PART OF AN ACTION IS A MATTER OF PUBLIC RECORD UNLESS THE14
ATTORNEY GENERAL DETERMINES, AT THE ATTORNEY GENERAL'S 15
DISCRETION, THAT IT IS CONFIDENTIAL TO THE PARTIES TO THE ACTION OR16
PROCEEDING AND TO THE COURT AND ITS EMPLOYEES. UPON THE FILING OF17
A CIVIL ACTION OR A MOTION OR PETITION IN A PENDING CIVIL ACTION BY18
THE ATTORNEY GENERAL ALLEGING THAT A PERSON HAS VIOLATED A19
CONFIDENTIAL ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER20
ACCEPTED PURSUANT TO THIS SUBSECTION (8), THE ASSURANCE OF21
DISCONTINUANCE OR CONSENT ORDER IS A PUBLIC RECORD AND OPEN TO22
INSPECTION BY ANY PERSON.23
(d) PROOF BY A PREPONDERANCE OF THE EVIDENCE OF A24
VIOLATION OF AN ASSURANCE OR STIPULATION OR CONSENT ORDER IS25
PRIMA FACIE EVIDENCE OF A VIOLATION FOR THE PURPOSES OF ANY CIVIL26
ACTION OR PROCEEDING BROUGHT BY THE ATTORNEY GENERAL AFTER27
1119
-11- THE ALLEGED VIOLATION OF THE ASSURANCE OR STIPULATION OR CONSENT1
ORDER, WHETHER A NEW ACTION OR A MOTION OR PETITION IN A PENDING2
ACTION OR PROCEEDING.3
24-31-1204. Civil actions for false claims - claims for4
retaliation - definitions. (1) Responsibility of attorney general.5
(a) T
HE ATTORNEY GENERAL SHALL DILIGENTLY INVESTIGATE A6
VIOLATION OF SECTION 24-31-1203. IF THE ATTORNEY GENERAL FINDS7
THAT A PERSON HAS VIOLATED OR IS VIOLATING SECTION 24-31-1203, THE8
ATTORNEY GENERAL MAY BRING A CIVIL ACTION AGAINST THE PERSON9
PURSUANT TO THIS SECTION.10
11
(b) IN ANY ACTION BROUGHT PURSUANT TO THIS PART 12 IN WHICH12
THE ATTORNEY GENERAL IS A PARTY, EITHER AS THE PLAINTIFF OR AS AN13
INTERVENOR, THE COURT MAY DISMISS THE ACTION UPON MOTION OF THE14
ATTORNEY GENERAL FOLLOWING THE NOTICE AND OPPORTUNITY FOR A15
HEARING PURSUANT TO SUBSECTION (4)(b)(I) OF THIS SECTION. IN16
DETERMINING WHETHER TO FILE A MOTION TO DISMISS, THE ATTORNEY17
GENERAL SHALL CONSIDER THE SEVERITY OF THE FALSE CLAIM, PROGRAM18
OR POPULATION IMPACTED BY THE FALSE CLAIM, DURATION OF THE FRAUD,19
WEIGHT AND MATERIALITY OF THE EVIDENCE, OTHER MEANS TO MAKE THE20
PROGRAM WHOLE, AND OTHER FACTORS THE ATTORNEY GENERAL DEEMS21
RELEVANT. THE ATTORNEY GENERAL'S DECISION-MAKING PROCESS22
CONCERNING A MOTION TO DISMISS AND ANY RECORDS RELATED TO THE23
DECISION-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION .24
25
(2) Role of the office of the state auditor.26
(a) N
OTWITHSTANDING ANY OTHER STATE LAW REQUIRING THE STATE27
1119
-12- AUDITOR TO KEEP INFORMATION CONFIDENTIAL , IF IN THE COURSE OF ITS1
AUDIT AUTHORITY, THE OFFICE OF THE STATE AUDITOR IDENTIFIES2
INFORMATION OF POTENTIAL FALSE CLAIMS SUBMITTED TO THE STATE OR3
A POLITICAL SUBDIVISION, THE STATE AUDITOR MAY SHARE ANY4
INFORMATION WITH THE ATTORNEY GENERAL OR THE POLITICAL5
SUBDIVISION. THE STATE AUDITOR MAY PARTICIPATE, WITH THE CONSENT6
OF THE ATTORNEY GENERAL , IN ANY SUBSEQUENT INVESTIGATION OR7
PROSECUTION OF THAT FALSE CLAIM .8
(b) I
F THE STATE AUDITOR ELECTS TO PARTICIPATE IN ANY9
INVESTIGATION AND PROSECUTION OF A FALSE CLAIM , THE STATE10
AUDITOR'S INTERESTS WILL BE REPRESENTED BY THE ATTORNEY GENERAL .11
(3)
Actions by private persons. (a) A PERSON MAY BRING A CIVIL12
ACTION FOR A VIOLATION OF SECTION 24-31-1203 FOR THE PERSON AND13
FOR THE STATE. THE ACTION MUST BE BROUGHT IN THE NAME OF THE14
STATE. THE COURT SHALL NOT DISMISS AN ACTION UPON MOTION OF15
THE PRIVATE PERSON WHO BROUGHT THE ACTION UNLESS THE ATTORNEY16
GENERAL GIVES WRITTEN CONSENT TO THE DISMISSAL AND 17
REASONS FOR CONSENTING.18
(b) (I) A PERSON WHO BRINGS AN ACTION SHALL SERVE ON THE19
STATE, PURSUANT TO RULE 4 OF THE COLORADO RULES OF CIVIL20
PROCEDURE, A COPY OF THE COMPLAINT AND WRITTEN DISCLOSURE OF21
SUBSTANTIALLY ALL MATERIAL EVIDENCE AND INFORMATION THE PERSON22
POSSESSES; EXCEPT THAT THE PERSON SHALL NOT DISCLOSE ANY23
EVIDENCE OR INFORMATION THAT THE PERSON REASONABLY BELIEVES IS24
PROTECTED BY THE DEFENDANT'S ATTORNEY-CLIENT PRIVILEGE UNLESS25
THE PRIVILEGE WAS WAIVED, INADVERTENTLY OR OTHERWISE, BY THE26
PERSON WHO HOLDS THE PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE27
1119
-13- APPLIES; OR DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN1
ATTORNEY PURSUANT TO 17 CFR 205.3 (d)(2), THE APPLICABLE2
COLORADO RULES OF PROFESSIONAL CONDUCT , OR OTHERWISE. THE3
COMPLAINT MUST BE FILED IN CAMERA, MUST REMAIN UNDER SEAL FOR AT4
LEAST SIXTY-THREE DAYS, AND MUST NOT BE SERVED ON THE DEFENDANT5
UNTIL THE COURT SO ORDERS. THE STATE MAY ELECT TO INTERVENE6
AND PROCEED WITH THE ACTION WITHIN SIXTY -THREE DAYS AFTER IT7
RECEIVES BOTH THE COMPLAINT AND THE MATERIAL EVIDENCE AND8
INFORMATION. 9
(II) IN DETERMINING WHETHER TO INTERVENE AND PROCEED WITH10
AN ACTION PURSUANT TO THIS SUBSECTION (3)(b), THE ATTORNEY11
GENERAL SHALL CONSIDER THE FACTORS DESCRIBED IN SUBSECTION (1)(d)12
OF THIS SECTION. THE ATTORNEY GENERAL'S DECISION-MAKING PROCESS13
CONCERNING WHETHER TO INTERVENE AND ANY RECORDS RELATED TO14
THE DECISION-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION.15
(c) T
HE STATE
MAY, FOR GOOD CAUSE SHOWN , MOVE THE16
COURT FOR EXTENSIONS OF THE TIME DURING WHICH THE COMPLAINT17
REMAINS UNDER SEAL PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION.18
T
HE MOTION MAY BE SUPPORTED BY AFFIDAVITS OR OTHER SUBMISSIONS19
IN CAMERA. THE DEFENDANT IS NOT REQUIRED TO RESPOND TO ANY20
COMPLAINT FILED PURSUANT TO THIS SECTION UNTIL TWENTY -ONE DAYS21
AFTER THE COMPLAINT IS UNSEALED AND SERVED UPON THE DEFENDANT22
PURSUANT TO RULE 4 OF THE COLORADO RULES OF CIVIL PROCEDURE .23
(d) B
EFORE THE EXPIRATION OF THE SIXTY -THREE-DAY PERIOD24
PURSUANT TO SUBSECTION (3)(b)
OF THIS SECTION AND ANY EXTENSIONS25
OBTAINED PURSUANT TO SUBSECTION (3)(c) OF THIS SECTION, THE STATE 26
SHALL:27
1119
-14- (I) PROCEED WITH THE ACTION, IN WHICH CASE THE STATE 1
SHALL CONDUCT THE ACTION; OR2
(II) N
OTIFY THE COURT THAT IT DECLINES TO TAKE OVER THE3
ACTION, IN WHICH CASE THE
PERSON WHO BROUGHT THE ACTION HAS THE4
RIGHT TO CONTINUE THE ACTION.5
(e) W
HEN A
PERSON BRINGS AN ACTION PURSUANT TO THIS6
SUBSECTION (3), ONLY THE STATE MAY INTERVENE OR BRING A RELATED7
ACTION BASED ON THE FACTS UNDERLYING THE PENDING ACTION .8
(f) ANY INFORMATION PROVIDED BY A PERSON TO THE STATE 9
PURSUANT TO THIS SUBSECTION (3) IS EXEMPT FROM DISCLOSURE10
PURSUANT TO THE "COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE11
72 OF THIS TITLE 24.12
(4) Rights of parties to private actions. (a) I F THE STATE 13
PROCEEDS WITH AN ACTION BROUGHT PURSUANT TO SUBSECTION (3) OF14
THIS SECTION, IT HAS THE PRIMARY RESPONSIBILITY FOR PROSECUTING THE15
ACTION AND IS NOT BOUND BY AN ACT OF THE PERSON WHO BROUGHT THE16
ACTION. THE PERSON HAS THE RIGHT TO CONTINUE AS A PARTY TO THE17
ACTION, SUBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION (3)(b) OF18
THIS SECTION.19
(b) (I) T
HE STATE
MAY, AT ANY TIME, DISMISS THE ACTION, IN20
WHOLE OR IN PART, NOTWITHSTANDING THE OBJECTIONS OF THE PERSON21
WHO BROUGHT THE ACTION IF THE PERSON HAS BEEN NOTIFIED BY THE22
STATE OF THE FILING OF THE MOTION AND THE COURT HAS PROVIDED23
THE PERSON WITH AN OPPORTUNITY FOR A HEARING ON THE MOTION .24
(II) T
HE STATE
MAY SETTLE THE ACTION WITH THE DEFENDANT25
NOTWITHSTANDING THE OBJECTIONS OF THE PERSON WHO BROUGHT THE26
ACTION IF THE COURT DETERMINES , AFTER A HEARING, THAT THE27
1119
-15- PROPOSED SETTLEMENT IS FAIR, ADEQUATE, AND REASONABLE UNDER ALL1
THE CIRCUMSTANCES. UPON A SHOWING OF GOOD CAUSE, THE COURT MAY2
HOLD THE HEARING IN CAMERA .3
(III) U
PON A SHOWING BY THE STATE
THAT UNRESTRICTED4
PARTICIPATION DURING THE COURSE OF THE LITIGATION BY THE PERSON5
WHO BROUGHT THE ACTION WOULD INTERFERE WITH OR UNDULY DELAY6
THE STATE'S PROSECUTION OF THE CASE, OR WOULD BE REPETITIOUS,7
IRRELEVANT, OR FOR PURPOSES OF HARASSMENT, THE COURT MAY, IN ITS8
DISCRETION, IMPOSE LIMITATIONS ON THE PERSON'S PARTICIPATION,9
INCLUDING BUT NOT LIMITED TO:10
(A) L
IMITING THE NUMBER OF WITNESSES THE
PERSON MAY CALL;11
(B) L
IMITING THE LENGTH OF THE TESTIMONY OF THE WITNESSES12
CALLED BY THE
PERSON;13
(C) L
IMITING THE
PERSON'S CROSS-EXAMINATION OF WITNESSES;14
AND15
(D) O
THERWISE LIMITING THE PARTICIPATION BY THE
PERSON IN16
THE LITIGATION.17
(IV) U
PON A SHOWING BY THE DEFENDANT THAT UNRESTRICTED18
PARTICIPATION DURING THE COURSE OF THE LITIGATION BY THE
PERSON19
WHO BROUGHT THE ACTION WOULD BE FOR PURPOSES OF HARASSMENT OR20
WOULD CAUSE THE DEFENDANT UNDUE BURDEN OR UNNECESSARY21
EXPENSE, THE COURT MAY LIMIT THE PARTICIPATION BY THE PERSON IN22
THE LITIGATION AS DESCRIBED IN SUBSECTION (4)(b)(III) OF THIS SECTION.23
(c) THE FACT THAT THE STATE HAS ELECTED NOT TO24
PROCEED WITH AN ACTION IS NOT A BASIS FOR A MOTION TO DISMISS ,25
MOTION FOR DETERMINATION OF A QUESTION OF LAW , OR MOTION FOR26
SUMMARY JUDGMENT , NOR IS IT A BASIS TO DENY THE COURT27
1119
-16- JURISDICTION OVER THE ACTION, BUT IF THE ATTORNEY GENERAL SUBMITS1
TO THE COURT THE ATTORNEY GENERAL'S REASONS FOR NOT PROCEEDING2
WITH THE ACTION, THE COURT MAY CONSIDER THE REASONS WHEN3
DECIDING A MOTION OR WHETHER THE COURT HAS JURISDICTION. IF THE4
STATE SO REQUESTS, IT MUST BE SERVED WITH COPIES OF ALL5
PLEADINGS FILED IN THE ACTION AND, AT THE STATE'S EXPENSE, BE6
SUPPLIED WITH COPIES OF ALL DEPOSITION TRANSCRIPTS . WHEN THE7
PERSON PROCEEDS WITH THE ACTION, THE COURT, WITHOUT LIMITING THE8
STATUS AND RIGHTS OF THE PERSON, MAY NEVERTHELESS PERMIT THE9
STATE TO INTERVENE AT A LATER DATE UPON A SHOWING OF GOOD10
CAUSE.11
(d) R
EGARDLESS OF WHETHER THE STATE
PROCEEDS WITH THE12
ACTION, UPON A SHOWING BY THE STATE OR POLITICAL SUBDIVISION THAT13
CERTAIN ACTIONS OF DISCOVERY BY THE PERSON WHO BROUGHT THE14
ACTION WOULD INTERFERE WITH THE STATE 'S INVESTIGATION OR15
PROSECUTION OF A CRIMINAL OR CIVIL MATTER ARISING OUT OF THE SAME16
FACTS, THE COURT MAY STAY THE DISCOVERY FOR A PERIOD OF NOT MORE17
THAN SIXTY-THREE DAYS. THE SHOWING BY THE STATE MUST BE18
CONDUCTED IN CAMERA. THE COURT MAY EXTEND THE SIXTY-THREE-DAY19
PERIOD UPON A FURTHER SHOWING THAT THE STATE HAS PURSUED THE20
CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS WITH REASONABLE21
DILIGENCE AND THAT ANY PROPOSED DISCOVERY IN THE CIVIL ACTION22
WILL INTERFERE WITH THE ONGOING CRIMINAL OR CIVIL INVESTIGATION23
OR PROCEEDINGS.24
(e) N
OTWITHSTANDING SUBSECTION (3)
OF THIS SECTION, THE25
STATE MAY ELECT TO PURSUE ITS CLAIM THROUGH ANY ALTERNATE26
REMEDY AVAILABLE TO THE STATE. IF AN ALTERNATE REMEDY IS PURSUED27
1119
-17- IN ANOTHER PROCEEDING , THE PERSON WHO BROUGHT THE ACTION1
PURSUANT TO SUBSECTION (3) OF THIS SECTION HAS THE SAME RIGHTS IN2
THAT PROCEEDING AS THE PERSON WOULD HAVE HAD IF THE ACTION HAD3
CONTINUED PURSUANT TO THIS SECTION . ANY FINDING OF FACT OR4
CONCLUSION OF LAW MADE IN THE OTHER PROCEEDING THAT HAS BECOME5
FINAL IS BINDING ON ALL PARTIES TO AN ACTION BROUGHT PURSUANT TO6
THIS SECTION. FOR PURPOSES OF THIS SUBSECTION (4)(e), A FINDING OR7
CONCLUSION IS FINAL IF IT HAS BEEN FINALLY DETERMINED ON APPEAL TO8
THE APPROPRIATE COURT OF THE STATE , IF ALL TIME FOR FILING SUCH AN9
APPEAL WITH RESPECT TO THE FINDING OR CONCLUSION HAS EXPIRED , OR10
IF THE FINDING OR CONCLUSION IS NOT SUBJECT TO JUDICIAL REVIEW .11
(5) Award to a person who brings an action. (a) (I) SUBJECT TO12
SUBSECTION (5)(a)(II) OF THIS SECTION, IF THE STATE PROCEEDS WITH13
AN ACTION BROUGHT BY A PERSON PURSUANT TO SUBSECTION (3) OF THIS14
SECTION, THE COURT SHALL AWARD THE PERSON AT LEAST FIFTEEN15
PERCENT BUT NOT MORE THAN TWENTY -FIVE PERCENT OF THE PROCEEDS16
RECEIVED FROM THE ACTION OR SETTLEMENT OF THE CLAIM , DEPENDING17
UPON THE EXTENT TO WHICH THE PERSON SUBSTANTIALLY CONTRIBUTED18
TO THE INVESTIGATION AND PROSECUTION OF THE ACTION .19
(II) I
F THE COURT FINDS THE ACTION TO BE BASED PRIMARILY ON20
DISCLOSURES OF SPECIFIC INFORMATION , OTHER THAN INFORMATION21
PROVIDED BY THE
PERSON WHO BROUGHT THE ACTION, RELATING TO22
ALLEGATIONS OR TRANSACTIONS IN A CRIMINAL , CIVIL, OR23
ADMINISTRATIVE HEARING ; IN A LEGISLATIVE, ADMINISTRATIVE, OR24
FORMAL AUDIT REPORT, HEARING, OR INVESTIGATION; OR FROM THE NEWS25
MEDIA, THE COURT MAY AWARD TO THE PERSON SUCH SUMS AS IT26
CONSIDERS APPROPRIATE BUT IN NO CASE MORE THAN TEN PERCENT OF27
1119
-18- THE PROCEEDS. IN MAKING ITS DETERMINATION , THE COURT SHALL1
CONSIDER THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE2
PERSON AND THE ROLE OF THE PERSON IN ADVANCING THE CASE TO3
LITIGATION.4
(III) A
NY PAYMENT TO A
PERSON MADE PURSUANT TO THIS5
SUBSECTION (5)(a) MUST BE MADE FROM THE PROCEEDS . IN ADDITION TO6
AN AWARD MADE PURSUANT TO SUBSECTION (5)(a)(I) OR (5)(a)(II) OF THIS7
SECTION, THE COURT SHALL AWARD THE PERSON AN AMOUNT FOR8
REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE BEEN9
NECESSARILY INCURRED, PLUS REASONABLE ATTORNEY FEES AND COSTS .10
T
HE COURT SHALL AWARD ALL OF THE EXPENSES , FEES, AND COSTS11
AGAINST THE DEFENDANT.12
(IV) I
F THE
PERSON WHO BROUGHT THE ACTION IS A GOVERNMENT13
EMPLOYEE WHO, IN THE COURSE OF THE PERSON'S WORK FOR THE STATE 14
GAINS KNOWLEDGE OF ANY INFORMATION THAT FORMS , IN WHOLE OR IN15
PART, THE BASIS OF THE PERSON'S CLAIM, THE COURT SHALL AWARD TO16
THE STATE THAT EMPLOYS THE PERSON THE AMOUNT THAT WOULD17
OTHERWISE BE AWARDED TO THE PERSON PURSUANT TO THIS SUBSECTION18
(5).19
(b) I
F THE STATE
DOES NOT INTERVENE IN AND PROCEED WITH20
AN ACTION PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, THE21
PERSON PREVAILING IN THE ACTION OR SETTLING THE CLAIM MUST22
RECEIVE AN AMOUNT THAT THE COURT DECIDES IS REASONABLE FOR23
COLLECTING THE CIVIL PENALTY AND DAMAGES . THE AMOUNT MUST BE AT24
LEAST TWENTY-FIVE PERCENT BUT NOT MORE THAN THIRTY PERCENT OF25
THE PROCEEDS RECEIVED FROM THE ACTION OR SETTLEMENT AND MUST BE26
PAID OUT OF THE PROCEEDS. THE COURT SHALL AWARD THE PERSON AN27
1119
-19- AMOUNT FOR REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE1
BEEN NECESSARILY INCURRED , PLUS REASONABLE ATTORNEY FEES AND2
COSTS. THE COURT SHALL AWARD ALL OF THE EXPENSES , FEES, AND COSTS3
AGAINST THE DEFENDANT.4
(c) R
EGARDLESS OF WHETHER THE STATE
INTERVENES IN AND5
PROCEEDS WITH AN ACTION PURSUANT TO SUBSECTION (3)(b) OF THIS6
SECTION, IF THE COURT FINDS THAT THE ACTION WAS BROUGHT BY A7
PERSON WHO PLANNED AND INITIATED THE VIOLATION OF SECTION8
24-31-1203
UPON WHICH THE ACTION WAS BROUGHT , THE COURT MAY, TO9
THE EXTENT THE COURT CONSIDERS APPROPRIATE , REDUCE THE SHARE OF10
THE PROCEEDS OF THE ACTION THAT THE
PERSON WOULD OTHERWISE11
RECEIVE PURSUANT TO THIS SUBSECTION (5), TAKING INTO ACCOUNT THE12
ROLE OF THE PERSON IN ADVANCING THE CASE TO LITIGATION AND ANY13
RELEVANT CIRCUMSTANCES PERTAINING TO THE VIOLATION . IF THE14
PERSON IS CONVICTED OF CRIMINAL CONDUCT ARISING FROM HIS OR HER15
ROLE IN THE VIOLATION OF SECTION 24-31-1203, THE COURT SHALL16
DISMISS THE PERSON FROM THE CIVIL ACTION AND THE PERSON MUST NOT17
RECEIVE ANY SHARE OF THE PROCEEDS OF THE ACTION . SUCH DISMISSAL18
DOES NOT PREJUDICE THE RIGHT OF THE STATE TO CONTINUE THE19
ACTION.20
(d) I
F THE STATE
DOES NOT INTERVENE IN AND PROCEED WITH21
AN ACTION PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION AND THE22
PERSON WHO BROUGHT THE ACTION PURSUES THE ACTION, THE COURT23
MAY AWARD TO THE DEFENDANT REASONABLE ATTORNEY FEES AND24
EXPENSES IF THE DEFENDANT PREVAILS IN THE ACTION AND THE COURT25
FINDS THAT THE CLAIM OF THE PERSON WAS CLEARLY FRIVOLOUS ,26
CLEARLY VEXATIOUS , OR BROUGHT PRIMARILY FOR PURPOSES OF27
1119
-20- HARASSMENT.1
(6) Certain actions barred. (a) A COURT DOES NOT HAVE2
JURISDICTION OVER AN ACTION BROUGHT PURSUANT TO THIS SECTION :3
(I) A
GAINST A SERVING MEMBER OF THE GENERAL ASSEMBLY , A4
MEMBER OF THE STATE JUDICIARY,
AN EXECUTIVE DIRECTOR OF A STATE5
AGENCY, OR AN ELECTED OFFICIAL IN THE EXECUTIVE BRANCH OF THE6
STATE OF COLORADO ACTING IN THE MEMBER'S, EXECUTIVE DIRECTOR'S,7
OR OFFICIAL'S OFFICIAL CAPACITY; 8
(II) A
GAINST A SERVING ELECTED OFFICIAL OF A POLITICAL
9
SUBDIVISION, A MEMBER OF A POLITICAL SUBDIVISION'S JUDICIARY, OR AN10
APPOINTED OFFICIAL OF A POLITICAL SUBDIVISION ACTING IN THE11
MEMBER'S OR OFFICIAL'S OFFICIAL CAPACITY; OR12
(III) IF THE ACTION IS BROUGHT BY A PERSON PURSUANT TO13
SUBSECTION (3) OF THIS SECTION AND IS BASED ON EVIDENCE OR14
INFORMATION KNOWN TO THE STATE WHEN THE ACTION WAS BROUGHT .15
(b) A
PERSON MAY NOT BRING AN ACTION PURSUANT TO16
SUBSECTION (3) OF THIS SECTION THAT IS BASED UPON ALLEGATIONS OR17
TRANSACTIONS THAT ARE THE SUBJECT OF A CIVIL SUIT IN A COURT OF THIS18
STATE OR AN ADMINISTRATIVE CIVIL MONEY PENALTY PROCEEDING IN19
WHICH THE STATE IS ALREADY A PARTY.20
(c) (I) A
COURT SHALL DISMISS AN ACTION OR CLAIM BROUGHT21
PURSUANT TO SUBSECTION (3)
OF THIS SECTION IF THE ACTION PURSUED BY22
THE PERSON IS BASED UPON SUBSTANTIALLY THE SAME ALLEGATIONS OR23
TRANSACTIONS PUBLICLY DISCLOSED IN A CRIMINAL , CIVIL, OR24
ADMINISTRATIVE HEARING ; IN A LEGISLATIVE, ADMINISTRATIVE, OR25
FORMAL AUDIT REPORT, HEARING, OR INVESTIGATION; OR FROM THE NEWS26
MEDIA, UNLESS:27
1119
-21- (A) THE STATE INTERVENES AND PROSECUTES THE ACTION1
PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION;2
(B) T
HE STATE
OPPOSES DISMISSAL; OR3
(C) T
HE
PERSON WHO BROUGHT THE ACTION IS AN ORIGINAL4
SOURCE OF THE INFORMATION THAT IS THE BASIS FOR THE ACTION .5
(II) A
S USED IN THIS SUBSECTION (6)(c)
, "ORIGINAL SOURCE"6
MEANS AN INDIVIDUAL WHO:7
(A) P
RIOR TO PUBLIC DISCLOSURE PURSUANT TO SUBSECTION8
(6)(c)(I)
OF THIS SECTION, HAS VOLUNTARILY DISCLOSED TO THE STATE 9
THE INFORMATION ON WHICH THE ALLEGATIONS OR TRANSACTIONS IN A10
CLAIM ARE BASED; OR11
(B) H
AS KNOWLEDGE THAT IS INDEPENDENT OF AND MATERIALLY12
ADDS TO THE PUBLICLY DISCLOSED ALLEGATIONS OR TRANSACTIONS AND13
HAS VOLUNTARILY PROVIDED THE INFORMATION TO THE STATE
BEFORE14
FILING AN ACTION PURSUANT TO SUBSECTION (3) OF THIS SECTION.15
(7) State not liable for certain expenses. T HE STATE IS16
NOT LIABLE FOR EXPENSES THAT A PERSON INCURS IN BRINGING AN ACTION17
PURSUANT TO SUBSECTION (3) OF THIS SECTION.18
(8) Private action for retaliation. (a) A S USED IN THIS19
SUBSECTION (8), UNLESS THE CONTEXT OTHERWISE REQUIRES :20
(I) "C
ONFIDENTIAL INFORMATION " INCLUDES DOCUMENTS ;21
E-MAILS AND OTHER ELECTRONIC DATA ; MEDICAL RECORDS; FINANCIAL22
RECORDS; TRADE SECRET INFORMATION ; INTELLECTUAL PROPERTY; OR23
INFORMATION THAT IS SUBJECT TO AN EMPLOYMENT AGREEMENT ,24
CONFIDENTIALITY AGREEMENT , OR NONDISCLOSURE AGREEMENT OR FOR25
WHICH THE
PERSON WHO BROUGHT THE ACTION PURSUANT TO SUBSECTION26
(3) OF THIS SECTION HAS A FIDUCIARY OBLIGATION TO MAINTAIN AS27
1119
-22- CONFIDENTIAL. CONFIDENTIAL INFORMATION DOES NOT INCLUDE1
INFORMATION THAT IS PROTECTED BY THE DEFENDANT 'S2
ATTORNEY-CLIENT PRIVILEGE UNLESS THE PRIVILEGE WAS WAIVED ,3
INADVERTENTLY OR OTHERWISE, BY THE PERSON WHO HOLDS THE4
PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF5
THE INFORMATION IS PERMITTED BY AN ATTORNEY PURSUANT TO 17 CFR6
205.3 (d)(2), THE APPLICABLE COLORADO RULES OF PROFESSI ONAL7
CONDUCT, OR OTHERWISE.8
(II) "L
AWFUL ACTS" INCLUDES, BUT IS NOT LIMITED TO, THE9
FOLLOWING:10
(A) C
ONDUCTING OR ASSISTING WITH AN INVESTIGATION FOR ,11
INITIATION OF, TESTIMONY FOR, OR ASSISTANCE IN AN ACTION FILED OR TO12
BE FILED PURSUANT TO THIS SECTION, OR CONDUCTING OR ASSISTING WITH13
AN INVESTIGATION WHEN THERE IS A REASONABLE BELIEF OF A POTENTIAL14
VIOLATION OF THIS SECTION;15
(B) M
EETING WITH POTENTIAL OR RETAINED COUNSEL OR AGENTS16
OR REPRESENTATIVES OF THE STATE
ABOUT THE MATTER THAT IS THE17
SUBJECT OF AN ACTION FILED OR TO BE FILED PURSUANT TO THIS SECTION ;18
(C) P
ROVIDING THE INDIVIDUAL 'S COUNSEL OR AGENTS OR19
REPRESENTATIVES OF THE STATE
WITH CONFIDENTIAL INFORMATION ;20
OR21
(D) F
ILING AN ACTION PURSUANT TO THIS SECTION.22
(b) A
N EMPLOYEE, CONTRACTOR, OR AGENT IS ENTITLED TO ALL23
RELIEF NECESSARY TO MAKE THAT INDIVIDUAL WHOLE IF THE INDIVIDUAL24
IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED, HARASSED,25
INTIMIDATED, SUED, DEFAMED, BLACKLISTED, OR IN ANY OTHER MANNER26
RETALIATED AGAINST OR DISCRIMINATED AGAINST IN THE TERMS AND27
1119
-23- CONDITIONS OF THE INDIVIDUAL 'S EMPLOYMENT, CONTRACT, BUSINESS, OR1
PROFESSION BY THE DEFENDANT OR BY ANY OTHER PERSON BECAUSE OF2
LAWFUL ACTS DONE BY THE INDIVIDUAL OR ASSOCIATED OTHERS IN3
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN4
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION , OR WHAT THE5
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION , OF SECTION6
24-31-1203.7
(c) (I) I
F THE DISCLOSURE OF CONFIDENTIAL INFORMATION IS IN8
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN9
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION , OR WHAT THE10
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION , OF SECTION11
24-31-1203,
AN INDIVIDUAL HAS A PRIVILEGE TO DISCLOSE THE12
CONFIDENTIAL INFORMATION TO :13
(A) T
HE INDIVIDUAL'S COUNSEL;14
(B) A
PERSON WITH WHOM THE INDIVIDUAL HAS A STATUTORY OR15
COMMON LAW PRIVILEGE; OR16
(C) A
N AGENT OR AUTHORIZED REPRESENTATIVE OF THE STATE .
17
(II) T
HE INDIVIDUAL'S DISCLOSURE OF CONFIDENTIAL18
INFORMATION TO THE INDIVIDUAL 'S COUNSEL OR TO AN AGENT OR19
AUTHORIZED REPRESENTATIVE OF THE STATE
DOES NOT CONSTITUTE A20
WAIVER BY A DEFENDANT OF ANY RIGHT OR PRIVILEGE THAT THE21
DEFENDANT MAY BE ENTITLED TO INVOKE .22
(d) (I) A
N INDIVIDUAL SEEKING RELIEF PURSUANT TO THIS23
SUBSECTION (8)
MAY SEEK RELIEF BY:24
(A) F
ILING A MOTION IN THE ACTION BROUGHT PURS UANT TO25
SUBSECTION (3)
OF THIS SECTION; OR26
(B) B
RINGING A SEPARATE ACTION IN AN APPROPRIATE COURT OF27
1119
-24- THE STATE FOR THE RELIEF PROVIDED PURSUANT TO THIS SUBSECTION (8).1
(II) A
N INDIVIDUAL WHO SEEKS RELIEF PURSUANT TO THIS2
SUBSECTION (8)
IS ENTITLED TO ALL RELIEF NECESSARY TO MAKE THE3
INDIVIDUAL WHOLE. THE RELIEF MUST INCLUDE, BUT IS NOT LIMITED TO:4
(A) I
F THE INDIVIDUAL IS AN EMPLOYEE, REINSTATEMENT WITH5
THE SAME SENIORITY STATUS THE INDIVIDUAL WOULD HAVE HAD BUT FOR6
THE DISCRIMINATION, TWICE THE AMOUNT OF BACK PAY, AND INTEREST ON7
THE BACK PAY;8
(B) I
F THE INDIVIDUAL IS A CONTRACTOR, SUBCONTRACTOR, OR9
INDEPENDENT CONTRACTOR , REINSTATEMENT OF A CONTRACT OR10
SUBCONTRACT THAT WAS CANCELED , NONRENEWED, OR MODIFIED11
BECAUSE OF RETALIATION, WITH ALL COMPENSATION OR CONTRACTUAL12
CONSIDERATION THAT THE INDIVIDUAL WOULD HAVE RECEIVED HAD THE13
CONTRACT OR SUBCONTRACT NOT BEEN CANCELED , NONRENEWED, OR14
MODIFIED; AND15
(C) C
OMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A16
RESULT OF THE DISCRIMINATION OR RETALIATION , INCLUDING LITIGATION17
COSTS AND REASONABLE ATTORNEY FEES .18
(e) (I) T
HE COURT SHALL AWARD THE INDIVIDUAL NOT LESS THAN19
THE DAMAGES DESCRIBED IN SUBSECTION (8)(d)(II)
OF THIS SECTION IF A20
DEFENDANT, EMPLOYER, OR OTHER PERSON RETALIATES AGAINST AN21
INDIVIDUAL BY BRINGING ANOTHER ACTION AGAINST THE INDIVIDUAL FOR :22
(A) A
CTS LATER DETERMINED TO BE LAWFUL ACTS ;23
(B) D
ISCLOSURE OF CONFIDENTIAL INFORMATION TO COUNSEL OR24
AN AGENT OR REPRESENTATIVE OF THE STATE
PURSUANT TO THIS25
SUBSECTION (8);26
(C) V
IOLATING AN EMPLOYMENT CONTRACT , CONFIDENTIALITY27
1119
-25- AGREEMENT, NONDISCLOSURE AGREEMENT , OR OTHER AGREEMENT; OR1
(D) C
OMMITTING ANY OTHER TORT OR BREACH OF DUTY AND THE2
COURT HEARING THE ACTION DETERMINES BY A PREPONDERANCE OF THE3
EVIDENCE THAT THE DEFENDANT , EMPLOYER, OR OTHER PERSON BROUGHT4
THE LAWSUIT AGAINST THE INDIVIDUAL
FOR THE PURPOSE OF5
RETALIATING AGAINST THE INDIVIDUAL .6
(II)
IN ADDITION TO ANY OTHER REMEDY OR SHARE OF THE7
PROCEEDS OF THE ACTION TO WHICH THE INDIVIDUAL IS ENTITLED8
PURSUANT TO THIS SUBSECTION (8)
AND REGARDLESS OF WHETHER THE9
INDIVIDUAL IS DETERMINED TO BE ENTITLED TO SHARE IN THE PROCEEDS10
OF THE ACTION OR CLAIM FILED PURSUANT TO SUBSECTION (3) OF THIS11
SECTION, IN ADDITION TO ANY OTHER CONSEQUENTIAL DAMAGES12
PERMITTED BY LAW, THE DAMAGES FOR A VIOLATION OF THIS SUBSECTION13
(8)(e) MUST BE NOT LESS THAN:14
(A) T
WICE THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND COSTS15
IF THE DEFENDANT, EMPLOYER, OR OTHER PERSON BROUGHT THE LAWSUIT16
AGAINST THE INDIVIDUAL IN A COURT IN THE STATE OF COLORADO; OR17
(B) T
HREE TIMES THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND18
COSTS IF THE DEFENDANT, EMPLOYER, OR OTHER PERSON BROUGHT THE19
LAWSUIT IN A JURISDICTION OUTSIDE OF COLORADO.20
(f) (I) T
HE COURT HEARING THE ACTION BROUGHT PURSUANT TO21
SUBSECTION (3)
OF THIS SECTION HAS JURISDICTION TO HEAR A PRIVATE22
ACTION OR MOTION FOR RETALIATION BROUGHT PURSUANT TO THIS23
SUBSECTION (8).24
(II) U
PON MOTION BY THE INDIVIDUAL, THE VENUE OF AN ACTION25
FILED IN ANOTHER COURT OF THE STATE OF COLORADO AGAINST THE26
INDIVIDUAL BY THE DEFENDANT , THE
EMPLOYER OF THE PERSON WHO27
1119
-26- BROUGHT THE ACTION PURSUANT TO SUBSECTION (3) OF THIS SECTION, OR1
OTHER PERSON ARISING OUT OF THE SUBJECT MATTER OF THE ACTION2
BROUGHT PURSUANT TO SUBSECTION (3) OF THIS SECTION MUST BE3
CHANGED TO THE COURT HEARING THE ACTION BROUGHT PURSUANT TO4
SUBSECTION (3) OF THIS SECTION.5
(9) Discovery in other actions. (a) I F A PERSON WHO BRINGS AN6
ACTION PURSUANT TO SUBSECTION (3) OF THIS SECTION IS A PARTY TO OR7
WITNESS IN AN ACTION OTHER THAN AN ACTION BROUGHT PURSUANT TO8
SUBSECTION (3) OF THIS SECTION, REFERRED TO IN THIS SUBSECTION (9) AS9
AN "OTHER ACTION", AND A PARTY IN THE OTHER ACTION SEEKS10
DISCOVERY FROM THE PERSON OF INFORMATION ABOUT OTHER LAWSUITS ,11
WHICH DISCOVERY WOULD REQUIRE THE PERSON TO DISCLOSE12
INFORMATION ABOUT AN ACTION FILED PURSUANT TO SUBSECTION (3) OF13
THIS SECTION WHILE THAT ACTION IS STILL UNDER SEAL , THE PERSON14
SHALL:15
(I) W
ITHIN A REASONABLE TIME , NOTIFY THE STATE
16
INVESTIGATING THE ACTION BROUGHT PURSUANT TO SUBSECTION (3) OF17
THIS SECTION OF THE PENDING DISCOVERY REQUEST ; AND18
(II) R
ESPOND TO THE DISCOVERY REQUEST BY STATING ONLY THAT19
THE MATTER IS CONFIDENTIAL, WITHOUT FURTHER ELABORATION , AND20
SHALL MAINTAIN THAT RESPONSE UNTIL THE STATE
ELECTS TO21
PROCEED OR NOT PROCEED WITH THE ACTION BROUGHT PURSUANT TO22
SUBSECTION (3) OF THIS SECTION OR UNTIL THE COURT LIFTS THE SEAL.23
(b) I
F NECESSARY, IN
ANY OTHER ACTION, A PERSON WHO24
BROUGHT THE ACTION PURSUANT TO SUBSECTION (3) OF THIS SECTION OR25
THE ATTORNEY GENERAL MAY FILE AN EX PARTE MOTION, IN CAMERA AND26
UNDER SEAL, SEEKING A PROTECTIVE ORDER OR AN EXTENSION OF TIME27
1119
-27- FOR THE PERSON TO RESPOND TO A DISCOVERY REQUEST . IF A PARTY IN1
THE OTHER ACTION MOVES TO COMPEL AN ANSWER TO THE DISCOVERY ,2
THE PERSON WHO BROUGHT THE ACTION PURSUANT TO SUBSECTION (3) OF3
THIS SECTION SHALL FILE, EX PARTE AND IN CAMERA, A RESPONSE TO THE4
MOTION TO COMPEL, IN WHICH THE ATTORNEY GENERAL MAY JOIN.5
T
HE RESPONSE TO THE MOTION TO COMPEL MUST REMAIN UNDER SEAL6
UNTIL SUCH TIME AS THE STATE
ELECTS TO PROCEED OR NOT PROCEED7
WITH THE ACTION OR UNTIL SUCH TIME AS THE COURT LIFTS THE SEAL .8
(c) NOTWITHSTANDING ANY PROVISION OF THIS SUBSECTION (9) TO9
THE CONTRARY, INFORMATION ABOUT AN ACTION FILED PURSUANT TO10
SUBSECTION (3) OF THIS SECTION THAT IS PROTECTED BY THE11
DEFENDANT'S ATTORNEY-CLIENT PRIVILEGE IS NOT DISCOVERABLE IN ANY12
OTHER ACTION UNLESS THE PRIVILEGE WAS WAIVED, INADVERTENTLY OR13
OTHERWISE, BY THE PERSON WHO HOLDS THE PRIVILEGE; AN EXCEPTION14
TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF THE INFORMATION IS15
PERMITTED BY AN ATTORNEY PURSUANT TO 17 CFR 205.3 (d)(2), THE16
APPLICABLE COLORADO RULES OF PROFESSIONAL CONDUCT, OR17
OTHERWISE.18
24-31-1205. False claims action procedures - limitation on19
action - standard of proof. (1) A
CIVIL ACTION PURSUANT TO SECTION20
24-31-1204
MAY NOT BE BROUGHT AFTER THE LATER OF :21
(a) M
ORE THAN SIX YEARS AFTER THE DATE ON WHICH THE22
VIOLATION OF SECTION 24-31-1203 IS COMMITTED OR THE DATE ON WHICH23
THE LAST IN A SERIES OF SUCH ACTS OR PRACTICES OCCURRED ,24
WHICHEVER IS LATER; OR25
(b) M
ORE THAN THREE YEARS AFTER THE DATE ON WHICH FACTS26
MATERIAL TO THE RIGHT OF ACTION ARE KNOWN OR REASONABLY SHOULD27
1119
-28- HAVE BEEN KNOWN BY THE OFFICIAL OF THE STATE CHARGED WITH1
RESPONSIBILITY TO ACT IN THE CIRCUMSTANCES , BUT IN NO EVENT MORE2
THAN TEN YEARS AFTER THE DATE ON WHICH THE VIOLATION OF SECTION3
24-31-1203
WAS COMMITTED.4
(2) (a) I
F THE STATE
ELECTS TO INTERVENE AND PROCEED WITH5
AN ACTION BROUGHT PURSUANT TO SECTION 24-31-1204, THE STATE 6
MAY FILE ITS OWN COMPLAINT OR AMEND THE ORIGINAL COMPLAINT TO:7
(I) C
LARIFY AND ADD DETAIL, AND ADD ADDITIONAL DEFENDANTS ,8
TO THE CLAIMS IN WHICH THE STATE
IS INTERVENING; AND9
(II) A
DD ANY ADDITIONAL CLAIMS AND DEFENDANTS WITH10
RESPECT TO WHICH THE STATE
CONTENDS IT IS ENTITLED TO RELIEF.11
(b) F
OR STATUTE OF LIMITATIONS PURPOSES, ANY PLEADINGS BY12
THE STATE
RELATE BACK TO THE FILING DATE OF THE ORIGINAL13
COMPLAINT FILED BY A PERSON PURSUANT TO SECTION 24-31-1204 (3), TO14
THE EXTENT THAT THE STATE'S CLAIM ARISES OUT OF THE CONDUCT,15
TRANSACTIONS, OR OCCURRENCES SET FORTH, OR ATTEMPTED TO BE SET16
FORTH, IN THE ORIGINAL COMPLAINT.17
(3) I
N AN ACTION BROUGHT PURSUANT TO SECTION 24-31-1204,18
THE STATE
OR PERSON WHO BROUGHT THE ACTION PURSUANT TO SECTION19
24-31-1204 (3) MUST PROVE ALL ESSENTIAL ELEMENTS OF THE CAUSE OF20
ACTION, INCLUDING DAMAGES, BY A PREPONDERANCE OF THE EVIDENCE .21
(4) N
OTWITHSTANDING ANY OTHER PROVISION OF LAW , THE22
C
OLORADO RULES OF CRIMINAL PROCEDURE , OR THE COLORADO RULES OF23
EVIDENCE, A FINAL JUDGMENT RENDERED IN FAVOR OF THE STATE
IN A24
CRIMINAL PROCEEDING CHARGING FRAUD OR FALSE STATEMENTS ,25
WHETHER UPON A VERDICT AFTER TRIAL OR UPON A PLEA OF GUILTY OR26
NOLO CONTENDERE, SHALL ESTOP THE DEFENDANT FROM DENYING THE27
1119
-29- ESSENTIAL ELEMENTS OF THE OFFENSE IN ANY ACTION THAT INVOLVES THE1
SAME TRANSACTION AS IN THE CRIMINAL PROCEEDING AND THAT IS2
BROUGHT PURSUANT TO SECTION 24-31-1204.3
24-31-1206. Jurisdiction. A
N ACTION DESCRIBED IN THIS PART 124
MAY BE BROUGHT IN ANY JUDICIAL DISTRICT IN WHICH THE DEFENDANT5
OR, IN THE CASE OF MULTIPLE DEFENDANTS, ANY ONE DEFENDANT CAN BE6
FOUND, RESIDES, OR TRANSACTS BUSINESS , OR IN WHICH AN ACT7
PROSCRIBED BY SECTION 24-31-1203 OCCURRED.
A PERSON BRINGING AN8
ACTION PURSUANT TO THIS PART 12 SHALL FILE THE COMPLAINT IN A9
DISTRICT COURT OR A FEDERAL COURT WITH JURISDICTION OVER THE10
ACTION AND SHALL NOT FILE THE COMPLAINT IN ANY OTHER COURT. THE11
APPROPRIATE DISTRICT COURT SHALL ISSUE A SUMMONS AS REQUIRED BY12
THE COLORADO RULES OF CIVIL PROCEDURE AND SERVE THE SUMMONS AT13
ANY PLACE.14
24-31-1207. False claims civil investigation demands.15
(1) W
HEN THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO BELIEVE16
THAT ANY PERSON, WHETHER IN THIS STATE OR ELSEWHERE, HAS ENGAGED17
IN OR IS ENGAGING IN ANY VIOLATION OF SECTION 24-31-1203, THE18
ATTORNEY GENERAL MAY :19
(a) R
EQUEST THE PERSON FILE A STATEMENT OR REPORT IN20
WRITING UNDER OATH OR OTHERWISE , ON FORMS PRESCRIBED BY THE21
ATTORNEY GENERAL, AS TO ALL FACTS AND CIRCUMSTANCES CONCERNING22
THE ALLEGED VIOLATIONS BY THE PERSON AND ANY OTHER DATA AND23
INFORMATION THE ATTORNEY GENERAL DEEMS NECESSARY ;
EXCEPT THAT24
THE PERSON IS NOT REQUIRED TO DISCLOSE ANY INFORMATION THAT IS25
PROTECTED BY THE PERSON'S ATTORNEY-CLIENT PRIVILEGE UNLESS THE26
PRIVILEGE WAS WAIVED, INADVERTENTLY OR OTHERWISE, BY THE PERSON27
1119
-30- WHO HOLDS THE PRIVILEGE; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR1
DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN ATTORNEY2
PURSUANT TO 17 CFR 205.3 (d)(2), THE APPLICABLE COLORADO RULES OF3
PROFESSIONAL CONDUCT, OR OTHERWISE.4
(b) E
XAMINE UNDER OATH ANY PERSON IN CONNECTION WITH THE5
ALLEGED VIOLATIONS;6
(c) E
XAMINE ANY PROPERTY OR SAMPLE THEREOF ,
OR ANY7
NONPRIVILEGED RECORD , BOOK, DOCUMENT, ACCOUNT, OR PAPER THE8
ATTORNEY GENERAL DEEMS NECESSARY ;9
(d) M
AKE TRUE COPIES, AT THE EXPENSE OF THE ATTORNEY10
GENERAL, OF ANY
NONPRIVILEGED RECORD, BOOK, DOCUMENT, ACCOUNT,11
OR PAPER EXAMINED PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION,12
WHICH COPIES MAY BE OFFERED INTO EVIDENCE IN LIEU OF THE ORIGINALS13
THEREOF IN AN ACTION BROUGHT PURSUANT TO THIS PART 12; AND14
(e) P
URSUANT TO ANY ORDER OF ANY DISTRICT COURT , IMPOUND15
ANY SAMPLE OF PROPERTY THAT IS MATERIAL TO ANY ALLEGED VIOLATION16
OF THIS PART 12 AND RETAIN THE SAME IN THE ATTORNEY GENERAL 'S17
POSSESSION UNTIL COMPLETION OF ALL PROCEEDINGS UNDERTAKEN18
PURSUANT TO THIS PART 12. A DISTRICT COURT SHALL NOT ISSUE AN19
ORDER DESCRIBED IN THIS SUBSECTION (1)(e) WITHOUT GIVING FULL20
OPPORTUNITY TO THE ACCUSED TO BE HEARD AND UNLESS THE ATTORNEY21
GENERAL HAS PROVEN BY CLEAR AND CONVINCING EVIDENCE THAT THE22
ORDER WILL NOT IMPAIR THE BUSINESS ACTIVITIES OF THE PERSON TO23
WHOM THE ORDER IS DIRECTED.24
(2) W
HEN THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO25
BELIEVE THAT A PERSON, WHETHER IN THIS STATE OR ELSEWHERE , HAS26
ENGAGED IN OR IS ENGAGING IN A VIOLATION OF SECTION 24-31-1203, THE27
1119
-31- ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO REQUIRE THE1
ATTENDANCE OF WITNESSES OR THE PRODUCTION OF DOCUMENTS ,2
ADMINISTER OATHS, CONDUCT HEARINGS IN AID OF ANY INVESTIGATION OR3
INQUIRY, AND PRESCRIBE SUCH FORMS AS MAY BE NECESSARY TO4
ADMINISTER THIS PART 12.5
(3) T
HE ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO ANY6
PUBLIC OR PRIVATE CORPORATION OR PARTNERSHIP OR ASSOCIATION OR7
GOVERNMENTAL ENTITY TO PR ODUCE WITNESSES TO APPEAR AND GIVE8
ORAL TESTIMONY AT INVESTIGATIVE HEARINGS . THE SUBPOENAS MAY9
DESIGNATE WITH REASONABLE PARTICULARITY THE MATTERS ON WHICH10
EXAMINATION IS REQUESTED. IN RESPONSE TO THE SUBPOENA, THE ENTITY11
SHALL DESIGNATE ONE OR MORE OFFICERS , DIRECTORS, OR MANAGING12
AGENTS, OR DESIGNATE OTHER PERSONS, TO TESTIFY ON ITS BEHALF.13
(4) A
NOTICE OR SUBPOENA MAY BE SERVED IN THE MANNER14
PRESCRIBED BY LAW OR AS PROVIDED IN RULE 4 OF THE COLORADO RULES15
OF CIVIL PROCEDURE.16
(5) (a) I
F THE RECORDS OF A PERSON WHO HAS BEEN ISSUED A17
SUBPOENA ARE LOCATED OUTSIDE THIS STATE , THE PERSON SHALL EITHER:18
(I) M
AKE THEM AVAILABLE TO THE ATTORNEY GENERAL EITHER19
ELECTRONICALLY OR AT A CONVENIENT LOCATION WITHIN THIS STATE ; OR20
(II) P
AY THE REASONABLE AND NECESSARY EXPENSES FOR THE21
ATTORNEY GENERAL , OR THE ATTORNEY GENERAL 'S DESIGNEE, TO22
EXAMINE THE RECORDS AT THE PLACE WHERE THEY ARE MAINTAINED .23
(b) T
HE ATTORNEY GENERAL MAY DESIGNATE REPRESENTATIVES ,24
INCLUDING COMPARABLE OFFICIALS OF THE STATE IN WHICH THE RECORDS25
ARE LOCATED, TO INSPECT THE RECORDS ON BEHALF OF THE ATTORNEY26
GENERAL.27
1119
-32- (6) IF ANY PERSON FAILS TO COOPERATE WITH ANY INVESTIGATION1
PURSUANT TO THIS SECTION OR FAILS TO OBEY ANY SUBPOENA ISSUED2
PURSUANT TO THIS SECTION, THE ATTORNEY GENERAL MAY APPLY TO THE3
APPROPRIATE DISTRICT COURT FOR AN APPROPRIATE ORDER TO4
EFFECTUATE THE PURPOSES OF THIS PART 12. AT THE REQUEST OF THE5
ATTORNEY GENERAL, THE APPLICATION MAY BE FILED IN CAMERA AND6
KEPT CONFIDENTIAL TO MAINTAIN THE CONFIDENTIALITY OF THE7
ATTORNEY GENERAL'S INVESTIGATION. THE APPLICATION MUST STATE8
THAT THERE ARE REASONABLE GROUNDS TO BELIEVE THAT THE ORDER9
APPLIED FOR IS NECESSARY TO INVESTIGATE A VIOLATION OF THIS PART 12.10
I
F THE COURT IS SATISFIED THAT REASONABLE GROUNDS EXIST , THE COURT11
IN ITS ORDER MAY:12
(a) G
RANT APPROPRIATE INJUNCTIVE RELIEF;13
(b) R
EQUIRE ATTENDANCE OF OR THE PRODUCTION OF DOCUMENTS14
BY THE PERSON, OR BOTH;15
(c) G
RANT OTHER OR FURTHER RELIEF AS MAY BE NECESSARY TO16
OBTAIN COMPLIANCE BY THE PERSON .17
24-31-1208. Rule-making. T
HE ATTORNEY GENERAL MAY18
PROMULGATE RULES NECESSARY TO IMPLEMENT THIS PART 12.19
24-31-1209. Use of recoveries - false claims recovery cash fund20
- creation. (1) T
HE STATE TREASURER SHALL TRANSFER ALL PROCEEDS21
RETAINED BY THE STATE FROM A FALSE CLAIMS ACTION BROUGHT22
PURSUANT TO THIS PART 12 TO THE FALSE CLAIMS RECOVERY CASH FUND ,23
WHICH IS HEREBY CREATED.24
(2) A
NY MONEY IN THE FUND NOT EXPENDED FOR THE PURPOSE OF25
THIS SECTION MAY BE INVESTED BY THE STATE TREASURER AS PROVIDED26
BY LAW. ALL INTEREST AND INCOME DERIVED FROM INVESTMENT AND27
1119
-33- DEPOSIT OF MONEY IN THE FUND SHALL BE CREDITED TO THE FUND .1
(3) (a) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL2
ASSEMBLY, THE DEPARTMENT MAY EXPEND MONEY FROM THE FUND FOR3
NECESSARY ACTUAL COSTS OF CARRYING OUT ITS DUTIES PURSUANT TO4
THIS PART 12.5
(b) (I) W
HEN PROCEEDS RETAINED BY THE STATE FROM A FALSE6
CLAIMS ACTION ARE DEPOSITED INTO THE FUND , THE ATTORNEY GENERAL7
SHALL DETERMINE THE AMOUNT OF THE PROCEEDS THAT SHOULD REMAIN8
IN THE FUND FOR USE BY THE DEPARTMENT FOR THE COSTS OF CARRYING9
OUT ITS DUTIES PURSUANT TO THIS PART
12 AND THE AMOUNT OF ANY10
PROCEEDS DEPOSITED INTO THE FUND THAT ARE ATTRIBUTABLE TO A11
POLITICAL SUBDIVISION.12
(II) I
F THE AMOUNT OF THE PROCEEDS IS EQUAL TO OR EXCEEDS13
THE AMOUNT OF THE FALSE CLAIM PLUS THE DEPARTMENT 'S COSTS, THE14
ATTORNEY GENERAL SHALL DIRECT THE STATE TREASURER TO
TRANSFER15
TO THE ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID AN16
AMOUNT EQUAL TO THE FALSE CLAIM . IF ALL OR PART OF THE PROCEEDS17
ARE ATTRIBUTABLE TO A POLITICAL SUBDIVISION , THE ATTORNEY18
GENERAL SHALL DIRECT THE TREASURER TO PAY TO THE POLITICAL19
SUBDIVISION, AS DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION, AN20
AMOUNT EQUAL TO THE FALSE CLAIM .21
(III) I
F THE AMOUNT OF THE PROCEEDS IS LESS THAN THE AMOUNT22
OF THE FALSE CLAIM PLUS THE DEPARTMENT 'S COSTS, THE ATTORNEY23
GENERAL SHALL DIRECT THE STATE TREASURER TO
TRANSFER TO THE24
ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID A PRO -RATED25
AMOUNT BASED ON THE ACTUAL RECOVERY . IF ALL OR PART OF THE26
PROCEEDS ARE ATTRIBUTABLE TO A POLITICAL SUBDIVISION , THE27
1119
-34- ATTORNEY GENERAL SHALL DIRECT THE TREASURER TO PAY TO THE1
POLITICAL SUBDIVISION, AS DESCRIBED IN SUBSECTION (3)(c) OF THIS2
SECTION, A PRO-RATED AMOUNT BASED ON THE ACTUAL RECOVERY .3
(IV) F
OR THE PURPOSES OF A FALSE CLAIMS ACTION INVOLVING A
4
VIOLATION OF SECTION 24-31-1203(1)(g), THE RELEVANT FUND IS THE5
UNEMPLOYMENT COMPENSATION FUND ESTABLISHED IN SECTION6
8-77-101.7
(c) N
O LATER THAN SEVEN DAYS AFTER THE ATTORNEY GENERAL8
DIRECTS THE STATE TREASURER TO MAKE A PAYMENT TO A POLITICAL9
SUBDIVISION PURSUANT TO SUBSECTION (3)(b) OF THIS SECTION, THE10
STATE TREASURER SHALL ISSUE A WARRANT TO BE PAID UPON DEMAND11
FROM THE FUND TO THE POLITICAL SUBDIVISION IN THE AMOUNT SPECIFIED12
BY THE ATTORNEY GENERAL .13
(4) A
NY UNEXPENDED AND UNENCUMBERED MONEY REMAINING14
IN THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN THE FUND15
AND SHALL NOT BE CREDITED OR TRANSFERRED TO ANOTHER FUND .16
24-31-1210. No limitations on common law authority -17
medicaid fraud control. N
OTHING IN THIS PART 12 AFFECTS, LIMITS, OR18
SUPPLANTS THE COMMON LAW AUTHORITY OF THE ATTORNEY GENERAL OR19
THE DEPARTMENT TO INVESTIGATE AND PROSECUTE MEDICAID FRAUD20
PURSUANT TO PART 8 OF THIS ARTICLE 31.21
24-31-1211. False claims act report. (1) ON OR BEFORE22
JANUARY 15, 2024, AND ON OR BEFORE EACH JANUARY 15 THEREAFTER,23
THE ATTORNEY GENERAL SHALL SUBMIT A WRITTEN REPORT TO THE HOUSE24
OF REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE, THE25
HOUSE OF REPRESENTATIVES JUDICIARY COMMITTEE, THE SENATE26
BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE, AND THE SENATE27
1119
-35- JUDICIARY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, CONCERNING1
CLAIMS BROUGHT PURSUANT TO THIS PART 12 DURING THE PREVIOUS2
FISCAL YEAR. THE REPORT MUST INCLUDE, BUT IS NOT LIMITED TO:3
(a) THE NUMBER OF ACTIONS BROUGHT BY THE ATTORNEY4
GENERAL AND THE DISPOSITION OF THE ACTIONS ;5
(b) THE AMOUNT OF PROCEEDS RECOVERED BY THE STATE6
THROUGH SETTLEMENT OR JUDGMENT IN AN ACTION BROUGHT PURSUANT7
TO THIS PART 12, INCLUDING:8
(I) THE CASE NUMBER AND PARTIES FOR EACH ACTION IN WHICH9
PROCEEDS WERE RECOVERED ;10
(II) THE AMOUNT OF PROCEEDS RECOVERED IN EACH CASE,11
CATEGORIZED BY THE AMOUNT RECOVERED AS DAMAGES , PENALTIES, AND12
LITIGATION COSTS; AND13
(III) IF APPLICABLE, THE PERCENTAGE OF THE PROCEEDS14
RECOVERED AND THE TOTAL AMOUNT AWARDED TO A PRIVATE PERSON15
WHO BROUGHT THE ACTION .16
(c) THE NUMBER OF ACTIONS BROUGHT BY A PERSON OTHER THAN17
THE ATTORNEY GENERAL IN WHICH THE ATTORNEY GENERAL DID NOT18
INTERVENE, WHETHER THE ACTIONS WERE CONTINUED BY THE OTHER19
PERSON, AND THE DISPOSITION OF THE ACTIONS;20
(d) THE AMOUNT OF PROCEEDS, INCLUDING ANY LITIGATION COSTS21
AND ATTORNEY FEES, RECOVERED THROUGH SETTLEMENT OR JUDGMENT22
IN ACTIONS BROUGHT BY A PERSON OTHER THAN THE ATTORNEY GENERAL ;23
AND24
(e) THE AMOUNT EXPENDED BY THE STATE FOR INVESTIGATION25
AND LITIGATION OF FALSE CLAIMS PURSUANT TO THIS PART 12 AND ALL26
OTHER COSTS RELATED TO THIS PART 12.27
1119
-36- (2) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE1
REPORTING REQUIREMENT DESCRIBED IN THIS SECTION CONTINUES2
INDEFINITELY.3
SECTION 3. In Colorado Revised Statutes, 2-3-109, add (3) as4
follows:5
2-3-109. Emergency reports. (3) I
F THE STATE AUDITOR IN THE6
COURSE OF AN AUDIT FINDS EVIDENCE OF APPARENTLY FALSE CLAIMS7
RELATED TO PUBLIC FUNDS OR PROPERTY , THE STATE AUDITOR SHALL8
IMMEDIATELY REPORT SUCH TRANSACTIONS TO THE COMMITTEE AND9
SHALL FILE A WRITTEN COPY OF THE REPORT WITH THE ATTORNEY10
GENERAL.11
SECTION 4. In Colorado Revised Statutes, 2-3-110.5, amend12
(3)(a)(II) as follows:13
2-3-110.5. Fraud hotline - investigations - confidentiality -14
access to records - definitions. (3) (a) (II) The state auditor shall15
forward all hotline calls alleging fraud by a medicaid recipient to the16
department of health care policy and financing, and
all calls alleging17
fraud by a medicaid provider or contractor to the medicaid fraud control18
unit of the office of the attorney general,
AND ALL CALLS ALLEGING FRAUD19
IN VIOLATION OF THE "COLORADO FALSE CLAIMS ACT", PART 12 OF20
ARTICLE 31 OF TITLE 24, TO THE ATTORNEY GENERAL UNLESS THE21
ALLEGATION RELATES TO A STATE EMPLOYEE IN THE PERFORMANCE OF22
THE EMPLOYEE'S DUTIES.23
SECTION 5. Appropriation. For the 2022-23 state fiscal year,24
$13,568 is appropriated to the legislative department for use by the office25
of the state auditor. This appropriation is from the general fund. The26
office may use this appropriation to implement this act.27
1119
-37- SECTION 6. Act subject to petition - effective date. This act1
takes effect at 12:01 a.m. on the day following the expiration of the2
ninety-day period after final adjournment of the general assembly; except3
that, if a referendum petition is filed pursuant to section 1 (3) of article V4
of the state constitution against this act or an item, section, or part of this5
act within such period, then the act, item, section, or part will not take6
effect unless approved by the people at the general election to be held in7
November 2022 and, in such case, will take effect on the date of the8
official declaration of the vote thereon by the governor.9
1119
-38-