HOUSE BILL 22-1119
BY REPRESENTATIVE(S) Gray and Weissman, Bird, Exum, Herod,
Hooton, Jodeh, Lindsay, Ricks, Valdez A.;
also SENATOR(S) Winter, Buckner, Gonzales, Lee
.
C
ONCERNING CIVIL LIABILITY FOR PRESENTING FALSE CLAIMS FOR PAYMENT
TO THE STATE
, AND, IN CONNECTION THEREWITH , MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-31-101, amend
(1)(p) and (1)(q); and add (1)(s) as follows:
24-31-101. Powers and duties of attorney general. (1) The
attorney general:
(p) May bring a civil action to enforce the provisions of section
24-31-113; and
(q) May bring a civil action to enforce the provisions of section
24-31-307 (2) or a criminal action to enforce the provisions of section
24-31-307 (3);
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (s) MAY BRING OR INTERVENE IN A CIVIL ACTION , CONDUCT
INVESTIGATIONS
, AND ISSUE CIVIL INVESTIGATION DEMANDS PURSUANT TO
THE
"COLORADO FALSE CLAIMS ACT", PART 12 OF THIS ARTICLE 31; AND
SECTION 2. In Colorado Revised Statutes, add part 12 to article
31 of title 24 as follows:
PART 12
COLORADO FALSE CLAIMS ACT
24-31-1201. Short title. T
HE SHORT TITLE OF THIS PART 12 IS THE
"COLORADO FALSE CLAIMS ACT".
24-31-1202. Definitions. A
S USED IN THIS PART 12, UNLESS THE
CONTEXT OTHERWISE REQUIRES
:
(1) (a) "C
LAIM" MEANS A REQUEST OR DEMAND, WHETHER UNDER A
CONTRACT OR OTHERWISE
, FOR MONEY OR PROPERTY AND WHETHER OR NOT
THE STATE OR A POLITICAL SUBDIVISION HAS TITLE TO THE MONEY OR
PROPERTY
, THAT IS:
(I) P
RESENTED TO AN OFFICER, EMPLOYEE, OR AGENT OF THE STATE
OR POLITICAL SUBDIVISION
; OR
(II) MADE TO A CONTRACTOR, GRANTEE, OR OTHER RECIPIENT, IF THE
MONEY OR PROPERTY IS TO BE SPENT OR USED ON THE STATE
'S OR POLITICAL
SUBDIVISION
'S BEHALF OR TO ADVANCE A GOVERNMENT PROGRAM OR
INTEREST
, AND IF THE STATE OR POLITICAL SUBDIVISION:
(A) P
ROVIDES OR HAS PROVIDED ANY PORTION OF THE MONEY OR
PROPERTY REQUESTED OR DEMANDED
; OR
(B) WILL REIMBURSE SUCH CONTRACTOR , GRANTEE, OR OTHER
RECIPIENT FOR ANY PORTION OF THE MONEY OR PROPERTY THAT IS
REQUESTED OR DEMANDED
.
(b) "C
LAIM" INCLUDES THE FAILURE TO PAY OR THE UNDERPAYMENT
OF AN OBLIGATION OWED TO THE STATE
.
PAGE 2-HOUSE BILL 22-1119 (c) "CLAIM" DOES NOT INCLUDE A REQUEST OR DEMAND FOR MONEY
OR PROPERTY THAT THE STATE OR A POLITICAL SUBDIVISION HAS PAID
:
(I) T
O AN INDIVIDUAL AS COMPENSATION FOR EMPLOYMENT BY THE
STATE OR POLITICAL SUBDIVISION
;
(II) A
S AN INCOME SUBSIDY WITH NO RESTRICTIONS ON THAT
INDIVIDUAL
'S USE OF THE MONEY OR PROPERTY;
(III) T
O AN INDIVIDUAL AS PART OF A GOVERNMENT ASSISTANCE
PROGRAM IN AN AMOUNT LESS THAN TEN THOUSAND DOLLARS IN A
CALENDAR YEAR
; OR
(IV) TO A PERSON UNDER THE "COLORADO MEDICAL ASSISTANCE
ACT", ARTICLES 4, 5, AND 6 OF TITLE 25.5.
(2) "D
EPARTMENT" MEANS THE DEPARTMENT OF LAW .
(3) "F
UND" MEANS THE FALSE CLAIMS RECOVERY CASH FUND
CREATED IN SECTION
24-31-1209.
(4) (a) "K
NOWING" OR "KNOWINGLY" MEAN THAT A PERSON, WITH
RESPECT TO INFORMATION ABOUT A CLAIM
:
(I) H
AS ACTUAL KNOWLEDGE OF THE FALSITY OF THE INFORMATION ;
(II) A
CTS IN DELIBERATE IGNORANCE OF THE TRUTH OR FALSITY OF
THE INFORMATION
; OR
(III) ACTS IN RECKLESS DISREGARD OF THE TRUTH OR FALSITY OF
THE INFORMATION
.
(b) "K
NOWING" OR "KNOWINGLY" DOES NOT REQUIRE PROOF OF
SPECIFIC INTENT TO DEFRAUD
. A PERSON WHO ACTS MERELY NEGLIGENTLY
WITH RESPECT TO INFORMATION IS NOT DEEMED TO HAVE ACTED
KNOWINGLY
, UNLESS THE PERSON ACTS WITH RECKLESS DISREGARD OF THE
TRUTH OR FALSITY OF THE INFORMATION
.
(5) "M
ATERIAL" MEANS HAVING A NATURAL TENDENCY TO
INFLUENCE
, OR BE CAPABLE OF INFLUENCING, THE PAYMENT OR RECEIPT OF
PAGE 3-HOUSE BILL 22-1119 MONEY OR PROPERTY.
(6) "O
BLIGATION" MEANS AN ESTABLISHED DUTY, WHETHER OR NOT
FIXED
, ARISING FROM AN EXPRESS OR IMPLIED CONTRACTUAL ,
GRANTOR-GRANTEE, OR LICENSOR-LICENSEE RELATIONSHIP; FROM A
FEE
-BASED OR SIMILAR RELATIONSHIP; FROM STATUTE OR REGULATION; OR
FROM THE RETENTION OF ANY OVERPAYMENT
.
(7) "P
ERSON" MEANS ANY INDIVIDUAL, CORPORATION, BUSINESS
TRUST
, ESTATE, TRUST, LIMITED LIABILITY COMPANY , PARTNERSHIP,
ASSOCIATION, OR OTHER NONGOVERNMENTAL LEGAL ENTITY .
(8) "P
OLITICAL SUBDIVISION" HAS THE SAME MEANING AS SET FORTH
IN SECTION
24-72-202.
(9) "P
ROCEEDS" MEANS ALL MONEY, PROPERTY, DAMAGES, DOUBLE
DAMAGES
, TREBLE DAMAGES, CIVIL PENALTIES, AND PAYMENTS FOR COSTS
OF COMPLIANCE
, INCLUDING REASONABLE COSTS AND ATTORNEY FEES ,
REALIZED BY THE STATE WHETHER AS A RESULT OF ANY SETTLEMENT OF OR
JUDGMENT ENTERED IN ANY ACTION BROUGHT PURSUANT TO THIS PART
12.
24-31-1203. False claims - civil liability for certain acts - penalty
- exception. (1) S
UBJECT TO SUBSECTION (2) OF THIS SECTION AND EXCEPT
AS OTHERWISE PROVIDED IN SUBSECTION
(5) OF THIS SECTION, A PERSON IS
LIABLE TO THE STATE FOR A CIVIL PENALTY OF NOT LESS THAN ELEVEN
THOUSAND EIGHT HUNDRED DOLLARS AND NOT MORE THAN TWENTY
-THREE
THOUSAND SIX HUNDRED DOLLARS PER VIOLATION
, PLUS THREE TIMES THE
AMOUNT OF DAMAGES THAT THE STATE SUSTAINS BECAUSE OF THE ACT OF
THAT PERSON
, IF THAT PERSON:
(a) K
NOWINGLY PRESENTS, OR CAUSES TO BE PRESENTED, A FALSE
OR FRAUDULENT CLAIM FOR PAYMENT OR APPROVAL
;
(b) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED A
FALSE RECORD OR STATEMENT MATERIAL TO A FALSE OR FRAUDULENT
CLAIM
;
(c) H
AS POSSESSION, CUSTODY, OR CONTROL OF PROPERTY OR
MONEY USED
, OR TO BE USED, BY THE STATE OR POLITICAL SUBDIVISION AND
KNOWINGLY DELIVERS
, OR CAUSES TO BE DELIVERED, LESS THAN ALL OF THE
PAGE 4-HOUSE BILL 22-1119 MONEY OR PROPERTY;
(d) A
UTHORIZES 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
, MAKES OR DELIVERS THE RECEIPT WITHOUT
COMPLETELY KNOWING THAT THE INFORMATION ON THE RECEIPT IS TRUE
;
(e) K
NOWINGLY BUYS, OR RECEIVES 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
;
(f) K
NOWINGLY MAKES, USES, OR CAUSES 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 CONCEALS OR KNOWINGLY AND IMPROPERLY AVOIDS OR
DECREASES AN OBLIGATION TO PAY OR TRANSMIT MONEY OR PROPERTY TO
THE STATE OR POLITICAL SUBDIVISION
;
(g) K
NOWINGLY MAKES, USES, OR CAUSES TO BE MADE OR USED, A
FALSE RECORD OR STATEMENT RESULTING IN THE UNDERPAYMENT OF
PREMIUMS OWED TO THE UNEMPLOYMENT COMPENSATION FUND
ESTABLISHED IN SECTION
8-77-101 OR IN THE PAYMENT OF UNEMPLOYMENT
INSURANCE BENEFITS OF MORE THAN FIFTEEN T HOUSAND DOLLARS IN A
CALENDAR YEAR
; OR
(h) CONSPIRES TO COMMIT A VIOLATION OF SUBSECTIONS (1)(a) TO
(1)(g) OF THIS SECTION.
(2) (a) N
OTWITHSTANDING THE AMOUNT OF DAMAGES AUTHORIZED
IN SUBSECTION
(1) OF THIS SECTION, FOR A PERSON WHO VIOLATES
SUBSECTION
(1) OF THIS SECTION, THE COURT MAY ASSESS REDUCED
DAMAGES AND PENALTIES AS DESCRIBED IN SUBSECTION
(2)(b) OR (2)(c) OF
THIS SECTION IF THE COURT FINDS THAT
:
(I) T
HE PERSON WHO COMMITTED THE VIOLATION FURNISHED TO THE
OFFICIALS OF THE STATE OR POLITICAL SUBDIVISION RESPONSIBLE FOR
INVESTIGATING FALSE CLAIMS VIOLATIONS ALL INFORMATION ABOUT THE
VIOLATION KNOWN TO THE PERSON AND FURNISHED SAID INFORMATION
PAGE 5-HOUSE BILL 22-1119 WITHIN THIRTY DAYS AFTER THE DATE ON WHICH THE PERSON FIRST
LEARNED OF A POTENTIAL VIOLATION
;
(II) A
T THE TIME THE PERSON FURNISHED THE INFORMATION ABOUT
THE VIOLATION TO THE OFFICIALS OF THE STATE OR POLITICAL SUBDIVISION
,
THE PERSON DID NOT HAVE ACTUAL OR CONSTRUCTIVE KNOWLEDGE OF THE
EXISTENCE OF AN INVESTIGATION INTO THE VIOLATION
; AND
(III) THE PERSON FULLY COOPERATED WITH ANY INVESTIGATION OF
THE VIOLATION BY THE STATE
.
(b) I
F A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE
STATE OR POLITICAL SUBDIVISION BEFORE A CRIMINAL PROSECUTION
, CIVIL
ACTION
, OR ADMINISTRATIVE ACTION WAS COMMENCED WITH RESPECT TO
THE VIOLATION
, THE COURT SHALL ASSESS ONE AND ONE-HALF THE AMOUNT
OF ACTUAL DAMAGES RESULTING FROM THE FALSE CLAIM
, INCLUDING
INTEREST FROM THE DATE OF THE FRAUD TO THE DATE OF FULL REPAYMENT
OF ALL DAMAGES
, THAT THE STATE OR POLITICAL SUBDIVISION SUSTAINS
BECAUSE OF THE VIOLATION AND A CIVIL PENALTY OF NOT LESS THAN FIVE
THOUSAND NINE HUNDRED DOLLARS AND NOT MORE THAN ELEVEN
THOUSAND EIGHT HUNDRED DOLLARS PER VIOLATION
.
(c) I
F A PERSON DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION
FURNISHED INFORMATION ABOUT THE VIOLATION TO THE OFFICIALS OF THE
STATE WHILE A CRIMINAL PROSECUTION
, CIVIL ACTION, OR ADMINISTRATIVE
ACTION CONCERNING THE VIOLATION WAS UNDER SEAL PURSUANT TO
SECTION
24-31-1204 (3)(b), THE COURT SHALL ASSESS DOUBLE THE AMOUNT
OF ACTUAL DAMAGES RESULTING FROM THE FALSE CLAIM
, INCLUDING
INTEREST FROM THE DATE OF THE FRAUD TO THE DATE OF FULL REPAYMENT
OF ALL DAMAGES
, THAT THE STATE OR POLITICAL SUBDIVISION SUSTAINS
BECAUSE OF THE VIOLATION AND A CIVIL PENALTY OF NOT LESS THAN SEVEN
THOUSAND EIGHT HUNDRED DOLLARS AND NOT MORE THAN FIFTEEN
THOUSAND SEVEN HUNDRED DOLLARS PER VIOLATION
.
(d) T
HE ATTORNEY GENERAL MAY DETERMINE WHETHER A PERSON
MEETS THE CRITERIA DESCRIBED IN SUBSECTION
(2)(a) OF THIS SECTION AND
SUBMIT THE DETERMINATION AND REASONING TO THE COURT
, WHICH THE
COURT MAY CONSIDER WHEN MAKING A FINDING AS TO WHETHER THE
PERSON SATISFIES THE CRITERIA DESCRIBED IN SUBSECTION
(2)(a) OF THIS
PAGE 6-HOUSE BILL 22-1119 SECTION.
(3) A
NY INFORMATION FURNISHED PURSUANT TO SUBSECTION (2) OF
THIS SECTION IS EXEMPT FROM DISCLOSURE PURSUANT TO THE
"COLORADO
OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF THIS TITLE 24.
(4) A
PERSON WHO VIOLATES THIS SECTION IS ALSO LIABLE TO THE
STATE FOR REASONABLE ATTORNEY FEES AND THE COSTS INCURRED DURING
THE ENFORCEMENT OF THIS PART
12.
(5) T
HIS SECTION DOES NOT APPLY TO CLAIMS , RECORDS, OR
STATEMENTS MADE PURSUANT TO TITLE
39.
(6) (a) T
HE MAXIMUM AND MINIMUM AM OUNTS FOR THE CIVIL
PENALTIES DESCRIBED IN THIS SECTION MUST BE ADJUSTED FOR INFLATION
ON
JULY 1, 2023, AND EACH JULY 1 THEREAFTER. THE ADJUSTMENT MADE
PURSUANT TO THIS SUBSECTION
(6) MUST BE ROUNDED UPWARD OR
DOWNWARD TO THE NEAREST TEN
-DOLLAR INCREMENT. THE SECRETARY OF
STATE SHALL CERTIFY THE ADJUSTED MAXIMUM AND MINIMUM AMOUNTS
FOR CIVIL PENALTIES WITHIN FOURTEEN DAYS AFTER THE APPROPRIATE
INFORMATION IS AVAILABLE
.
(b) F
OR EACH ACTION BROUGHT PURSUANT TO THIS PART 12, THE
APPLICABLE MINIMUM AND MAXIMUM AMOUNTS FOR A CIVIL PENALTY ARE
THE AMOUNTS IN EFFECT ON THE DATE THE CAUSE OF ACTION ACCRUES
.
(c) A
S USED IN THIS SECTION, "INFLATION" MEANS THE ANNUAL
PERCENTAGE CHANGE IN THE
DENVER-AURORA-LAKEWOOD CONSUMER
PRICE INDEX
, OR ITS APPLICABLE SUCCESSOR INDEX , PUBLISHED BY THE
UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS .
(7) F
OR ACCOUNTING PURPOSES, A FINE OR PENALTY RECEIVED BY
THE STATE PURSUANT TO THIS PART
12 IS A DAMAGE AWARD.
(8) (a) S
UBJECT TO SECTION 24-31-1204 (4)(e), IF THE ATTORNEY
GENERAL HAS AUTHORITY TO BRING OR INTERVENE IN A CIVIL ACTION
PURSUANT TO THIS PART
12, THE ATTORNEY GENERAL MAY ACCEPT FROM A
PERSON ALLEGED TO HAVE VIOLATED SUBSECTION
(1) OF THIS SECTION, IN
LIEU OF OR AS A PART OF A CIVIL ACTION
, AN ASSURANCE OF
DISCONTINUANCE OR A CONSENT ORDER APPROVED BY A COURT OF
PAGE 7-HOUSE BILL 22-1119 COMPETENT JURISDICTION OF THE ALLEGED VIOLATION OF THIS PART 12. THE
ASSURANCE OR CONSENT ORDER MAY INCLUDE A STIPULATION FOR THE
VOLUNTARY PAYMENT BY THE ALLEGED VIOLATOR OF ANY RELIEF
AUTHORIZED BY THIS PART
12, INCLUDING PAYMENT FOR INVESTIGATION
AND LITIGATION COSTS INCURRED BY THE ATTORNEY GENERAL OR PRIVATE
PERSON WHO BROUGHT AN ACTION PURSUANT TO SECTION
24-31-1204 (3),
AND ACTUAL DAMAGES RESULTING FROM THE FALSE CLAIM PLUS ANY
AUTHORIZED MULTIPLIER
, INTEREST, AND CIVIL MONEY PENALTY.
(b) A
N ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER
ACCEPTED BY THE ATTORNEY GENERAL PRECLUDES A SEPARATE ACTION
PURSUANT TO SECTION
24-31-1204 (3) BY ANY PERSON BASED ON THE SAME
FACTUAL CIRCUMSTANCES
, EXCEPT FOR AN ACTION BASED ON A VIOLATION
OF THE ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER
.
(c) A
N ASSURANCE OF DISCONTINUANCE ACCEPTED BY THE
ATTORNEY GENERAL AND ANY CONSENT ORDER FILED WITH THE COURT AS
A PART OF AN ACTION IS A MATTER OF PUBLIC RECORD UNLESS THE
ATTORNEY GENERAL DETERMINES
, AT THE ATTORNEY GENERAL 'S
DISCRETION
, THAT IT IS CONFIDENTIAL TO THE PARTIES TO THE ACTION OR
PROCEEDING AND TO THE COURT AND ITS EMPLOYEES
. UPON THE FILING OF
A CIVIL ACTION OR A MOTION OR PETITION IN A PENDING CIVIL ACTION BY
THE ATTORNEY GENERAL ALLEGING THAT A PERSON HAS VIOLATED A
CONFIDENTIAL ASSURANCE OF DISCONTINUANCE OR CONSENT ORDER
ACCEPTED PURSUANT TO THIS SUBSECTION
(8), THE ASSURANCE OF
DISCONTINUANCE OR CONSENT ORDER IS A PUBLIC RECORD AND OPEN TO
INSPECTION BY ANY PERSON
.
(d) P
ROOF BY A PREPONDERANCE OF THE EVIDENCE OF A VIOLATION
OF AN ASSURANCE OR STIPULATION OR CONSENT ORDER IS PRIMA FACIE
EVIDENCE OF A VIOLATION FOR THE PURPOSES OF ANY CIVIL ACTION OR
PROCEEDING BROUGHT BY THE ATTORNEY GENERAL AFTER THE ALLEGED
VIOLATION OF THE ASSURANCE OR STIPULATION OR CONSENT ORDER
,
WHETHER A NEW ACTION OR A MOTION OR PETITION IN A PENDING ACTION OR
PROCEEDING
.
24-31-1204. Civil actions for false claims - claims for retaliation
- definitions. (1) Responsibility of attorney general. (a) T
HE ATTORNEY
GENERAL SHALL DILIGENTLY INVESTIGATE A VIOLATION OF SECTION
24-31-1203. IF THE ATTORNEY GENERAL FINDS THAT A PERSON HAS
PAGE 8-HOUSE BILL 22-1119 VIOLATED OR IS VIOLATING SECTION 24-31-1203, THE ATTORNEY GENERAL
MAY BRING A CIVIL ACTION AGAINST THE PERSON PURSUANT TO THIS
SECTION
.
(b) I
N ANY ACTION BROUGHT PURSUANT TO THIS PART 12 IN WHICH
THE ATTORNEY GENERAL IS A PARTY
, EITHER AS THE PLAINTIFF OR AS AN
INTERVENOR
, THE COURT MAY DISMISS THE ACTION UPON MOTION OF THE
ATTORNEY GENERAL FOLLOWING THE NOTICE AND OPPORTUNITY FOR A
HEARING PURSUANT TO SUBSECTION
(4)(b)(I) OF THIS SECTION. IN
DETERMINING WHETHER TO FILE A MOTION TO DISMISS
, THE ATTORNEY
GENERAL SHALL CONSIDER THE SEVERITY OF THE FALSE CLAIM
, PROGRAM OR
POPULATION IMPACTED BY THE FALSE CLAIM
, DURATION OF THE FRAUD,
WEIGHT AND MATERIALITY OF THE EVIDENCE , OTHER MEANS TO MAKE THE
PROGRAM WHOLE
, AND OTHER FACTORS THE ATTORNEY GENERAL DEEMS
RELEVANT
. THE ATTORNEY GENERAL 'S DECISION-MAKING PROCESS
CONCERNING A MOTION TO DISMISS AND ANY RECORDS RELATED TO THE
DECISION
-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION .
(2) Role of the office of the state auditor. (a) N
OTWITHSTANDING
ANY OTHER STATE LAW REQUIRING THE STATE AUDITOR TO KEEP
INFORMATION CONFIDENTIAL
, IF IN THE COURSE OF ITS AUDIT AUTHORITY,
THE OFFICE OF THE STATE AUDITOR IDENTIFIES INFORMATION OF POTENTIAL
FALSE CLAIMS SUBMITTED TO THE STATE OR A POLITICAL SUBDIVISION
, THE
STATE AUDITOR MAY SHARE ANY INFORMATION WITH THE ATTORNEY
GENERAL OR THE POLITICAL SUBDIVISION
. THE STATE AUDITOR MAY
PARTICIPATE
, WITH THE CONSENT OF THE ATTORNEY GENERAL , IN ANY
SUBSEQUENT INVESTIGATION OR PROSECUTION OF THAT FALSE CLAIM
.
(b) I
F THE STATE AUDITOR ELECTS TO PARTICIPATE IN ANY
INVESTIGATION AND PROSECUTION OF A FALSE CLAIM
, THE STATE AUDITOR'S
INTERESTS WILL BE REPRESENTED BY THE ATTORNEY GENERAL
.
(3) Actions by private persons. (a) A
PERSON MAY BRING A CIVIL
ACTION FOR A VIOLATION OF SECTION
24-31-1203 FOR THE PERSON AND FOR
THE STATE
. THE ACTION MUST BE BROUGHT IN THE NAME OF THE STATE . THE
COURT SHALL NOT DISMISS AN ACTION UPON MOTION OF THE PRIVATE
PERSON WHO BROUGHT THE ACTION UNLESS THE ATTORNEY GENERAL GIVES
WRITTEN CONSENT TO THE DISMISSAL AND REASONS FOR CONSENTING
.
(b) (I) A
PERSON WHO BRINGS AN ACTION SHALL SERVE ON THE
PAGE 9-HOUSE BILL 22-1119 STATE, PURSUANT TO RULE 4 OF THE COLORADO RULES OF CIVIL PROCEDURE,
A COPY OF THE COMPLAINT AND WRITTEN DISCLOSURE OF SUBSTANTIALLY
ALL MATERIAL EVIDENCE AND INFORMATION THE PERSON POSSESSES
;
EXCEPT THAT THE PERSON SHALL NOT DISCLOSE ANY EVIDENCE OR
INFORMATION THAT THE PERSON REASONABLY BELIEVES IS PROTECTED BY
THE DEFENDANT
'S ATTORNEY-CLIENT PRIVILEGE UNLESS THE PRIVILEGE WAS
WAIVED
, INADVERTENTLY OR OTHERWISE , BY THE PERSON WHO HOLDS THE
PRIVILEGE
; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR DISCLOSURE OF
THE INFORMATION IS PERMITTED BY AN ATTORNEY PURSUANT TO
17 CFR
205.3 (d)(2),
THE APPLICABLE COLORADO RULES OF PROFESSIONAL
CONDUCT
, OR OTHERWISE. THE COMPLAINT MUST BE FILED IN CAMERA, MUST
REMAIN UNDER SEAL FOR AT LEAST SIXTY
-THREE DAYS, AND MUST NOT BE
SERVED ON THE DEFENDANT UNTIL THE COURT SO ORDERS
. THE STATE MAY
ELECT TO INTERVENE AND PROCEED WITH THE ACTION WITHIN SIXTY
-THREE
DAYS AFTER IT RECEIVES BOTH THE COMPLAINT AND THE MATERIAL
EVIDENCE AND INFORMATION
.
(II) I
N DETERMINING WHETHER TO INTERVENE AND PROCEED WITH
AN ACTION PURSUANT TO THIS SUBSECTION
(3)(b), THE ATTORNEY GENERAL
SHALL CONSIDER THE FACTORS DESCRIBED IN SUBSECTION
(1)(d) OF THIS
SECTION
. THE ATTORNEY GENERAL 'S DECISION-MAKING PROCESS
CONCERNING WHETHER TO INTERVENE AND ANY RECORDS RELATED TO THE
DECISION
-MAKING PROCESS ARE NOT DISCOVERABLE IN ANY ACTION .
(c) T
HE STATE MAY, FOR GOOD CAUSE SHOWN, MOVE THE COURT FOR
EXTENSIONS OF THE TIME DURING WHICH THE COMPLAINT REMAINS UNDER
SEAL PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION. THE MOTION MAY
BE SUPPORTED BY AFFIDAVITS OR OTHER SUBMISSIONS IN CAMERA
. THE
DEFENDANT IS NOT REQUIRED TO RESPOND TO ANY COMPLAINT FILED
PURSUANT TO THIS SECTION UNTIL TWENTY
-ONE DAYS AFTER THE
COMPLAINT IS UNSEALED AND SERVED UPON THE DEFENDANT PURSUANT TO
RULE
4 OF THE COLORADO RULES OF CIVIL PROCEDURE .
(d) B
EFORE THE EXPIRATION OF THE SIXTY -THREE-DAY PERIOD
PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION AND ANY EXTENSIONS
OBTAINED PURSUANT TO SUBSECTION
(3)(c) OF THIS SECTION, THE STATE
SHALL
:
(I) P
ROCEED WITH THE ACTION, IN WHICH CASE THE STATE SHALL
CONDUCT THE ACTION
; OR
PAGE 10-HOUSE BILL 22-1119 (II) NOTIFY THE COURT THAT IT DECLINES TO TAKE OVER THE
ACTION
, IN WHICH CASE THE PERSON WHO BROUGHT THE ACTION HAS THE
RIGHT TO CONTINUE THE ACTION
.
(e) W
HEN A PERSON BRINGS AN ACTION PURSUANT TO THIS
SUBSECTION
(3), ONLY THE STATE MAY INTERVENE OR BRING A RELATED
ACTION BASED ON THE FACTS UNDERLYING THE PENDING ACTION
.
(f) A
NY INFORMATION PROVIDED BY A PERSON TO THE STATE
PURSUANT TO THIS SUBSECTION
(3) IS EXEMPT FROM DISCLOSURE PURSUANT
TO THE
"COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF THIS
TITLE
24.
(4) Rights of parties to private actions. (a) I
F THE STATE
PROCEEDS WITH AN ACTION BROUGHT PURSUANT TO SUBSECTION
(3) OF THIS
SECTION
, IT HAS THE PRIMARY RESPONSIBILITY FOR PROSECUTING THE
ACTION AND IS NOT BOUND BY AN ACT OF THE PERSON WHO BROUGHT THE
ACTION
. THE PERSON HAS THE RIGHT TO CONTINUE AS A PARTY TO THE
ACTION
, SUBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION (3)(b) OF
THIS SECTION
.
(b) (I) T
HE STATE MAY, AT ANY TIME, DISMISS THE ACTION, IN
WHOLE OR IN PART
, NOTWITHSTANDING THE OBJECTIONS OF THE PERSON
WHO BROUGHT THE ACTION IF THE PERSON HAS BEEN NOTIFIED BY THE STATE
OF THE FILING OF THE MOTION AND THE COURT HAS PROVIDED THE PERSON
WITH AN OPPORTUNITY FOR A HEARING ON THE MOTION
.
(II) T
HE STATE MAY SETTLE THE ACTION WITH THE DEFENDANT
NOTWITHSTANDING THE OBJECTIONS OF THE PERSON WHO BROUGHT THE
ACTION IF THE COURT DETERMINES
, AFTER A HEARING, THAT THE PROPOSED
SETTLEMENT IS FAIR
, ADEQUATE, AND REASONABLE UNDER ALL THE
CIRCUMSTANCES
. UPON A SHOWING OF GOOD CAUSE, THE COURT MAY HOLD
THE HEARING IN CAMERA
.
(III) U
PON A SHOWING BY THE STATE THAT UNRESTRICTED
PARTICIPATION DURING THE COURSE OF THE LITIGATION BY THE PERSON WHO
BROUGHT THE ACTION WOULD INTERFERE WITH OR UNDULY DELAY THE
STATE
'S PROSECUTION OF THE CASE , OR WOULD BE REPETITIOUS ,
IRRELEVANT, OR FOR PURPOSES OF HARASSMENT , THE COURT MAY, IN ITS
DISCRETION
, IMPOSE LIMITATIONS ON THE PERSON 'S PARTICIPATION,
PAGE 11-HOUSE BILL 22-1119 INCLUDING BUT NOT LIMITED TO:
(A) L
IMITING THE NUMBER OF WITNESSES THE PERSON MAY CALL ;
(B) L
IMITING THE LENGTH OF THE TESTIMONY OF THE WITNESSES
CALLED BY THE PERSON
;
(C) L
IMITING THE PERSON'S CROSS-EXAMINATION OF WITNESSES ;
AND
(D) OTHERWISE LIMITING THE PARTICIPATION BY THE PERSON IN THE
LITIGATION
.
(IV) U
PON A SHOWING BY THE DEFENDANT THAT UNRESTRICTED
PARTICIPATION DURING THE COURSE OF THE LITIGATION BY THE PERSON WHO
BROUGHT THE ACTION WOULD BE FOR PURPOSES OF HARASSMENT OR WOULD
CAUSE THE DEFENDANT UNDUE BURDEN OR UNNECESSARY EXPENSE
, THE
COURT MAY LIMIT THE PARTICIPATION BY THE PERSON IN THE LITIGATION AS
DESCRIBED IN SUBSECTION
(4)(b)(III) OF THIS SECTION.
(c) T
HE FACT THAT THE STATE HAS ELECTED NOT TO PROCEED WITH
AN ACTION IS NOT A BASIS FOR A MOTION TO DISMISS
, MOTION FOR
DETERMINATION OF A QUESTION OF LAW
, OR MOTION FOR SUMMARY
JUDGMENT
, NOR IS IT A BASIS TO DENY THE COURT JURISDICTION OVER THE
ACTION
, BUT IF THE ATTORNEY GENERAL SUBMITS TO THE COURT THE
ATTORNEY GENERAL
'S REASONS FOR NOT PROCEEDING WITH THE ACTION ,
THE COURT MAY CONSIDER THE REASONS WHEN DECIDING A MOTION OR
WHETHER THE COURT HAS JURISDICTION
. IF THE STATE SO REQUESTS, IT
MUST BE SERVED WITH COPIES OF ALL PLEADINGS FILED IN THE ACTION AND
,
AT THE STATE'S EXPENSE, BE SUPPLIED WITH COPIES OF ALL DEPOSITION
TRANSCRIPTS
. WHEN THE PERSON PROCEEDS WITH THE ACTION , THE COURT,
WITHOUT LIMITING THE STATUS AND RIGHTS OF THE PERSON , MAY
NEVERTHELESS PERMIT THE STATE TO INTERVENE AT A LATER DATE UPON A
SHOWING OF GOOD CAUSE
.
(d) R
EGARDLESS OF WHETHER THE STATE PROCEEDS WITH THE
ACTION
, UPON A SHOWING BY THE STATE OR POLITICAL SUBDIVISION THAT
CERTAIN ACTIONS OF DISCOVERY BY THE PERSON WHO BROUGHT THE ACTION
WOULD INTERFERE WITH THE STATE
'S INVESTIGATION OR PROSECUTION OF
A CRIMINAL OR CIVIL MATTER ARISING OUT OF THE SAME FACTS
, THE COURT
PAGE 12-HOUSE BILL 22-1119 MAY STAY THE DISCOVERY FOR A PERIOD OF NOT MORE THAN SIXTY -THREE
DAYS
. THE SHOWING BY THE STATE MUST BE CONDUCTED IN CAMERA . THE
COURT MAY EXTEND THE SIXTY
-THREE-DAY PERIOD UPON A FURTHER
SHOWING THAT THE STATE HAS PURSUED THE CRIMINAL OR CIVIL
INVESTIGATION OR PROCEEDINGS WITH REASONABLE DILIGENCE AND THAT
ANY PROPOSED DISCOVERY IN THE CIVIL ACTION WILL INTERFERE WITH THE
ONGOING CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS
.
(e) N
OTWITHSTANDING SUBSECTION (3) OF THIS SECTION, THE STATE
MAY ELECT TO PURSUE ITS CLAIM THROUGH ANY ALTERNATE REMEDY
AVAILABLE TO THE STATE
. IF AN ALTERNATE REMEDY IS PURSUED IN
ANOTHER PROCEEDING
, THE PERSON WHO BROUGHT THE ACTION PURSUANT
TO SUBSECTION
(3) OF THIS SECTION HAS THE SAME RIGHTS IN THAT
PROCEEDING AS THE PERSON WOULD HAVE HAD IF THE ACTION HAD
CONTINUED PURSUANT TO THIS SECTION
. ANY FINDING OF FACT OR
CONCLUSION OF LAW MADE IN THE OTHER PROCEEDING THAT HAS BECOME
FINAL IS BINDING ON ALL PARTIES TO AN ACTION BROUGHT PURSUANT TO
THIS SECTION
. FOR PURPOSES OF THIS SUBSECTION (4)(e), A FINDING OR
CONCLUSION IS FINAL IF IT HAS BEEN FINALLY DETERMINED ON APPEAL TO
THE APPROPRIATE COURT OF THE STATE
, IF ALL TIME FOR FILING SUCH AN
APPEAL WITH RESPECT TO THE FINDING OR CONCLUSION HAS EXPIRED
, OR IF
THE FINDING OR CONCLUSION IS NOT SUBJECT TO JUDICIAL REVIEW
.
(5) Award to a person who brings an action. (a) (I) S
UBJECT TO
SUBSECTION
(5)(a)(II) OF THIS SECTION, IF THE STATE PROCEEDS WITH AN
ACTION BROUGHT BY A PERSON PURSUANT TO SUBSECTION
(3) OF THIS
SECTION
, THE COURT SHALL AWARD THE PERSON AT LEAST FIFTEEN PERCENT
BUT NOT MORE THAN TWENTY
-FIVE PERCENT OF THE PROCEEDS RECEIVED
FROM THE ACTION OR SETTLEMENT OF THE CLAIM
, DEPENDING UPON THE
EXTENT TO WHICH THE PERSON SUBSTANTIALLY CONTRIBUTED TO THE
INVESTIGATION AND PROSECUTION OF THE ACTION
.
(II) I
F THE COURT FINDS THE ACTION TO BE BASED PRIMARILY ON
DISCLOSURES OF SPECIFIC INFORMATION
, OTHER THAN INFORMATION
PROVIDED BY THE PERSON WHO BROUGHT THE ACTION
, RELATING TO
ALLEGATIONS OR TRANSACTIONS IN A CRIMINAL
, CIVIL, OR ADMINISTRATIVE
HEARING
; IN A LEGISLATIVE, ADMINISTRATIVE, OR FORMAL AUDIT REPORT,
HEARING, OR INVESTIGATION; OR FROM THE NEWS MEDIA, THE COURT MAY
AWARD TO THE PERSON SUCH SUMS AS IT CONSIDERS APPROPRIATE BUT IN NO
CASE MORE THAN TEN PERCENT OF THE PROCEEDS
. IN MAKING ITS
PAGE 13-HOUSE BILL 22-1119 DETERMINATION, THE COURT SHALL CONSIDER THE SIGNIFICANCE OF THE
INFORMATION PROVIDED BY THE PERSON AND THE ROLE OF THE PERSON IN
ADVANCING THE CASE TO LITIGATION
.
(III) A
NY PAYMENT TO A PERSON MADE PURSUANT TO THIS
SUBSECTION
(5)(a) MUST BE MADE FROM THE PROCEEDS . IN ADDITION TO AN
AWARD MADE PURSUANT TO SUBSECTION
(5)(a)(I) OR (5)(a)(II) OF THIS
SECTION
, THE COURT SHALL AWARD THE PERSON AN AMOUNT FOR
REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE BEEN NECESSARILY
INCURRED
, PLUS REASONABLE ATTORNEY FEES AND COSTS . THE COURT
SHALL AWARD ALL OF THE EXPENSES
, FEES, AND COSTS AGAINST THE
DEFENDANT
.
(IV) I
F THE PERSON WHO BROUGHT THE ACTION IS A GOVERNMENT
EMPLOYEE WHO
, IN THE COURSE OF THE PERSON'S WORK FOR THE STATE
GAINS KNOWLEDGE OF ANY INFORMATION THAT FORMS
, IN WHOLE OR IN
PART
, THE BASIS OF THE PERSON'S CLAIM, THE COURT SHALL AWARD TO THE
STATE THAT EMPLOYS THE PERSON THE AMOUNT THAT WOULD OTHERWISE
BE AWARDED TO THE PERSON PURSUANT TO THIS SUBSECTION
(5).
(b) I
F THE STATE DOES NOT INTERVENE IN AND PROCEED WITH AN
ACTION PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION, THE PERSON
PREVAILING IN THE ACTION OR SETTLING THE CLAIM MUST RECEIVE AN
AMOUNT THAT THE COURT DECIDES IS REASONABLE FOR COLLECTING THE
CIVIL PENALTY AND DAMAGES
. THE AMOUNT MUST BE AT LEAST
TWENTY
-FIVE PERCENT BUT NOT MORE THAN THIRTY PERCENT OF THE
PROCEEDS RECEIVED FROM THE ACTION OR SETTLEMENT AND MUST BE PAID
OUT OF THE PROCEEDS
. THE COURT SHALL AWARD THE PERSON AN AMOUNT
FOR REASONABLE EXPENSES THAT THE COURT FINDS TO HAVE BEEN
NECESSARILY INCURRED
, PLUS REASONABLE ATTORNEY FEES AND COSTS .
T
HE COURT SHALL AWARD ALL OF THE EXPENSES , FEES, AND COSTS AGAINST
THE DEFENDANT
.
(c) R
EGARDLESS OF WHETHER THE STATE INTERVENES IN AND
PROCEEDS WITH AN ACTION PURSUANT TO SUBSECTION
(3)(b) OF THIS
SECTION
, IF THE COURT FINDS THAT THE ACTION WAS BROUGHT BY A PERSON
WHO PLANNED AND INITIATED THE VIOLATION OF SECTION
24-31-1203 UPON
WHICH THE ACTION WAS BROUGHT
, THE COURT MAY, TO THE EXTENT THE
COURT CONSIDERS APPROPRIATE
, REDUCE THE SHARE OF THE PROCEEDS OF
THE ACTION THAT THE PERSON WOULD OTHERWISE RECEIVE PURSUANT TO
PAGE 14-HOUSE BILL 22-1119 THIS SUBSECTION (5), TAKING INTO ACCOUNT THE ROLE OF THE PERSON IN
ADVANCING THE CASE TO LITIGATION AND ANY RELEVANT CIRCUMSTANCES
PERTAINING TO THE VIOLATION
. IF THE PERSON IS CONVICTED OF CRIMINAL
CONDUCT ARISING FROM HIS OR HER ROLE IN THE VIOLATION OF SECTION
24-31-1203, THE COURT SHALL DISMISS THE PERSON FROM THE CIVIL ACTION
AND THE PERSON MUST NOT RECEIVE ANY SHARE OF THE PROCEEDS OF THE
ACTION
. SUCH DISMISSAL DOES NOT PREJUDICE THE RIGHT OF THE STATE TO
CONTINUE THE ACTION
.
(d) I
F THE STATE DOES NOT INTERVENE IN AND PROCEED WITH AN
ACTION PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION AND THE PERSON
WHO BROUGHT THE ACTION PURSUES THE ACTION
, THE COURT MAY AWARD
TO THE DEFENDANT REASONABLE ATTORNEY FEES AND EXPENSES IF THE
DEFENDANT PREVAILS IN THE ACTION AND THE COURT FINDS THAT THE
CLAIM OF THE PERSON WAS CLEARLY FRIVOLOUS
, CLEARLY VEXATIOUS, OR
BROUGHT PRIMARILY FOR PURPOSES OF HARASSMENT
.
(6) Certain actions barred. (a) A
COURT DOES NOT HAVE
JURISDICTION OVER AN ACTION BROUGHT PURSUANT TO THIS SECTION
:
(I) A
GAINST A SERVING MEMBER OF THE GENERAL ASSEMBLY , A
MEMBER OF THE STATE JUDICIARY
, AN EXECUTIVE DIRECTOR OF A STATE
AGENCY
, OR AN ELECTED OFFICIAL IN THE EXECUTIVE BRANCH OF THE STATE
OF
COLORADO ACTING IN THE MEMBER 'S, EXECUTIVE DIRECTOR'S, OR
OFFICIAL
'S OFFICIAL CAPACITY;
(II) A
GAINST A SERVING ELECTED OFFICIAL OF A POLITICAL
SUBDIVISION
, A MEMBER OF A POLITICAL SUBDIVISION'S JUDICIARY, OR AN
APPOINTED OFFICIAL OF A POLITICAL SUBDIVISION ACTING IN THE MEMBER
'S
OR OFFICIAL
'S OFFICIAL CAPACITY; OR
(III) IF THE ACTION IS BROUGHT BY A PERSON PURSUANT TO
SUBSECTION
(3) OF THIS SECTION AND IS BASED ON EVIDENCE OR
INFORMATION KNOWN TO THE STATE WHEN THE ACTION WAS BROUGHT
.
(b) A
PERSON MAY NOT BRING AN ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION THAT IS BASED UPON ALLEGATIONS OR TRANSACTIONS
THAT ARE THE SUBJECT OF A CIVIL SUIT IN A COURT OF THIS STATE OR AN
ADMINISTRATIVE CIVIL MONEY PENALTY PROCEEDING IN WHICH THE STATE
IS ALREADY A PARTY
.
PAGE 15-HOUSE BILL 22-1119 (c) (I) A COURT SHALL DISMISS AN ACTION OR CLAIM BROUGHT
PURSUANT TO SUBSECTION
(3) OF THIS SECTION IF THE ACTION PURSUED BY
THE PERSON IS BASED UPON SUBSTANTIALLY THE SAME ALLEGATIONS OR
TRANSACTIONS PUBLICLY DISCLOSED IN A CRIMINAL
, CIVIL, OR
ADMINISTRATIVE HEARING
; IN A LEGISLATIVE, ADMINISTRATIVE, OR FORMAL
AUDIT REPORT
, HEARING, OR INVESTIGATION; OR FROM THE NEWS MEDIA,
UNLESS:
(A) T
HE STATE INTERVENES AND PROSECUTES THE ACTION
PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION;
(B) T
HE STATE OPPOSES DISMISSAL; OR
(C) THE PERSON WHO BROUGHT THE ACTION IS AN ORIGINAL SOURCE
OF THE INFORMATION THAT IS THE BASIS FOR THE ACTION
.
(II) A
S USED IN THIS SUBSECTION (6)(c), "ORIGINAL SOURCE" MEANS
AN INDIVIDUAL WHO
:
(A) P
RIOR TO PUBLIC DISCLOSURE PURSUANT TO SUBSECTION
(6)(c)(I) OF THIS SECTION, HAS VOLUNTARILY DISCLOSED TO THE STATE THE
INFORMATION ON WHICH THE ALLEGATIONS OR TRANSACTIONS IN A CLAIM
ARE BASED
; OR
(B) HAS KNOWLEDGE THAT IS INDEPENDENT OF AND MATERIALLY
ADDS TO THE PUBLICLY DISCLOSED ALLEGATIONS OR TRANSACTIONS AND
HAS VOLUNTARILY PROVIDED THE INFORMATION TO THE STATE BEFORE
FILING AN ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION.
(7) State not liable for certain expenses. T
HE STATE IS NOT LIABLE
FOR EXPENSES THAT A PERSON INCURS IN BRINGING AN ACTION PURSUANT
TO SUBSECTION
(3) OF THIS SECTION.
(8) Private action for retaliation. (a) A
S USED IN THIS SUBSECTION
(8), UNLESS THE CONTEXT OTHERWISE REQUIRES :
(I) "C
ONFIDENTIAL INFORMATION" INCLUDES DOCUMENTS; E-MAILS
AND OTHER ELECTRONIC DATA
; MEDICAL RECORDS; FINANCIAL RECORDS;
TRADE SECRET INFORMATION; INTELLECTUAL PROPERTY; OR INFORMATION
THAT IS SUBJECT TO AN EMPLOYMENT AGREEMENT
, CONFIDENTIALITY
PAGE 16-HOUSE BILL 22-1119 AGREEMENT, OR NONDISCLOSURE AGREEMENT OR FOR WHICH THE PERSON
WHO BROUGHT THE ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION
HAS A FIDUCIARY OBLIGATION TO MAINTAIN AS CONFIDENTIAL
.
C
ONFIDENTIAL INFORMATION DOES NOT INCLUDE INFORMATION THAT IS
PROTECTED BY THE DEFENDANT
'S ATTORNEY-CLIENT PRIVILEGE UNLESS THE
PRIVILEGE WAS WAIVED
, INADVERTENTLY OR OTHERWISE , BY THE PERSON
WHO HOLDS THE PRIVILEGE
; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR
DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN ATTORNEY
PURSUANT TO
17 CFR 205.3 (d)(2), THE APPLICABLE COLORADO RULES OF
PROFESSIONAL CONDUCT
, OR OTHERWISE.
(II) "L
AWFUL ACTS" INCLUDES, BUT IS NOT LIMITED TO, THE
FOLLOWING
:
(A) C
ONDUCTING OR ASSISTING WITH AN INVESTIGATION FOR ,
INITIATION OF, TESTIMONY FOR, OR ASSISTANCE IN AN ACTION FILED OR TO
BE FILED PURSUANT TO THIS SECTION
, OR CONDUCTING OR ASSISTING WITH
AN INVESTIGATION WHEN THERE IS A REASONABLE BELIEF OF A POTENTIAL
VIOLATION OF THIS SECTION
;
(B) M
EETING WITH POTENTIAL OR RETAINED COUNSEL OR AGENTS OR
REPRESENTATIVES OF THE STATE ABOUT THE MATTER THAT IS THE SUBJECT
OF AN ACTION FILED OR TO BE FILED PURSUANT TO THIS SECTION
;
(C) P
ROVIDING THE INDIVIDUAL 'S COUNSEL OR AGENTS OR
REPRESENTATIVES OF THE STATE WITH CONFIDENTIAL INFORMATION
; OR
(D) FILING AN ACTION PURSUANT TO THIS SECTION.
(b) A
N EMPLOYEE, CONTRACTOR, OR AGENT IS ENTITLED TO ALL
RELIEF NECESSARY TO MAKE THAT INDIVIDUAL WHOLE IF THE INDIVIDUAL IS
DISCHARGED
, DEMOTED, SUSPENDED, THREATENED , HARASSED,
INTIMIDATED, SUED, DEFAMED, BLACKLISTED, OR IN ANY OTHER MANNER
RETALIATED AGAINST OR DISCRIMINATED AGAINST IN THE TERMS AND
CONDITIONS OF THE INDIVIDUAL
'S EMPLOYMENT, CONTRACT, BUSINESS, OR
PROFESSION BY THE DEFENDANT OR BY ANY OTHER PERSON BECAUSE OF
LAWFUL ACTS DONE BY THE INDIVIDUAL OR ASSOCIATED OTHERS IN
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION
, OR WHAT THE
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION
, OF SECTION
PAGE 17-HOUSE BILL 22-1119 24-31-1203.
(c) (I) I
F THE DISCLOSURE OF CONFIDENTIAL INFORMATION IS IN
FURTHERANCE OF AN ACTION BROUGHT PURSUANT TO THIS SECTION OR IN
FURTHERANCE OF AN EFFORT TO STOP ANY VIOLATION
, OR WHAT THE
INDIVIDUAL REASONABLY BELIEVES TO BE A VIOLATION
, OF SECTION
24-31-1203, AN INDIVIDUAL HAS A PRIVILEGE TO DISCLOSE THE
CONFIDENTIAL INFORMATION TO
:
(A) T
HE INDIVIDUAL'S COUNSEL;
(B) A
PERSON WITH WHOM THE INDIVIDUAL HAS A STATUTORY OR
COMMON LAW PRIVILEGE
; OR
(C) AN AGENT OR AUTHORIZED REPRESENTATIVE OF THE STATE .
(II) T
HE INDIVIDUAL'S DISCLOSURE OF CONFIDENTIAL INFORMATION
TO THE INDIVIDUAL
'S COUNSEL OR TO AN AGENT OR AUTHORIZED
REPRESENTATIVE OF THE STATE DOES NOT CONSTITUTE A WAIVER BY A
DEFENDANT OF ANY RIGHT OR PRIVILEGE THAT THE DEFENDANT MAY BE
ENTITLED TO INVOKE
.
(d) (I) A
N INDIVIDUAL SEEKING RELIEF PURSUANT TO THIS
SUBSECTION
(8) MAY SEEK RELIEF BY:
(A) F
ILING A MOTION IN THE ACTION BROUGHT PURSUANT TO
SUBSECTION
(3) OF THIS SECTION; OR
(B) BRINGING A SEPARATE ACTION IN AN APPROPRIATE COURT OF
THE STATE FOR THE RELIEF PROVIDED PURSUANT TO THIS SUBSECTION
(8).
(II) A
N INDIVIDUAL WHO SEEKS RELIEF PURSUANT TO THIS
SUBSECTION
(8) IS ENTITLED TO ALL RELIEF NECESSARY TO MAKE THE
INDIVIDUAL WHOLE
. THE RELIEF MUST INCLUDE, BUT IS NOT LIMITED TO:
(A) I
F THE INDIVIDUAL IS AN EMPLOYEE, REINSTATEMENT WITH THE
SAME SENIORITY STATUS THE INDIVIDUAL WOULD HAVE HAD BUT FOR THE
DISCRIMINATION
, TWICE THE AMOUNT OF BACK PAY, AND INTEREST ON THE
BACK PAY
;
PAGE 18-HOUSE BILL 22-1119 (B) IF THE INDIVIDUAL IS A CONTRACTOR , SUBCONTRACTOR, OR
INDEPENDENT CONTRACTOR
, REINSTATEMENT OF A CONTRACT OR
SUBCONTRACT THAT WAS CANCELED
, NONRENEWED, OR MODIFIED BECAUSE
OF RETALIATION
, WITH ALL COMPENSATION OR CONTRACTUAL
CONSIDERATION THAT THE INDIVIDUAL WOULD HAVE RECEIVED HAD THE
CONTRACT OR SUBCONTRACT NOT BEEN CANCELED
, NONRENEWED, OR
MODIFIED
; AND
(C) COMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A
RESULT OF THE DISCRIMINATION OR RETALIATION
, INCLUDING LITIGATION
COSTS AND REASONABLE ATTORNEY FEES
.
(e) (I) T
HE COURT SHALL AWARD THE INDIVIDUAL NOT LESS THAN
THE DAMAGES DESCRIBED IN SUBSECTION
(8)(d)(II) OF THIS SECTION IF A
DEFENDANT
, EMPLOYER, OR OTHER PERSON RETALIATES AGAINST AN
INDIVIDUAL BY BRINGING ANOTHER ACTION AGAINST THE INDIVIDUAL FOR
:
(A) A
CTS LATER DETERMINED TO BE LAWFUL ACTS ;
(B) D
ISCLOSURE OF CONFIDENTIAL INFORMATION TO COUNSEL OR AN
AGENT OR REPRESENTATIVE OF THE STATE PURSUANT TO THIS SUBSECTION
(8);
(C) V
IOLATING AN EMPLOYMENT CONTRACT , CONFIDENTIALITY
AGREEMENT
, NONDISCLOSURE AGREEMENT , OR OTHER AGREEMENT; OR
(D) COMMITTING ANY OTHER TORT OR BREACH OF DUTY AND THE
COURT HEARING THE ACTION DETERMINES BY A PREPONDERANCE OF THE
EVIDENCE THAT THE DEFENDANT
, EMPLOYER, OR OTHER PERSON BROUGHT
THE LAWSUIT AGAINST THE INDIVIDUAL FOR THE PURPOSE OF RETALIATING
AGAINST THE INDIVIDUAL
.
(II)
IN ADDITION TO ANY OTHER REMEDY OR SHARE OF THE PROCEEDS
OF THE ACTION TO WHICH THE INDIVIDUAL IS ENTITLED PURSUANT TO THIS
SUBSECTION
(8) AND REGARDLESS OF WHETHER THE INDIVIDUAL IS
DETERMINED TO BE ENTITLED TO SHARE IN THE PROCEEDS OF THE ACTION OR
CLAIM FILED PURSUANT TO SUBSECTION
(3) OF THIS SECTION, IN ADDITION
TO ANY OTHER CONSEQUENTIAL DAMAGES PERMITTED BY LAW
, THE
DAMAGES FOR A VIOLATION OF THIS SUBSECTION
(8)(e) MUST BE NOT LESS
THAN
:
PAGE 19-HOUSE BILL 22-1119 (A) TWICE THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND COSTS IF
THE DEFENDANT
, EMPLOYER, OR OTHER PERSON BROUGHT THE LAWSUIT
AGAINST THE INDIVIDUAL IN A COURT IN THE STATE OF
COLORADO; OR
(B) THREE TIMES THE INDIVIDUAL'S ACTUAL ATTORNEY FEES AND
COSTS IF THE DEFENDANT
, EMPLOYER, OR OTHER PERSON BROUGHT THE
LAWSUIT IN A JURISDICTION OUTSIDE OF
COLORADO.
(f) (I) T
HE COURT HEARING THE ACTION BROUGHT PURSUANT TO
SUBSECTION
(3) OF THIS SECTION HAS JURISDICTION TO HEAR A PRIVATE
ACTION OR MOTION FOR RETALIATION BROUGHT PURSUANT TO THIS
SUBSECTION
(8).
(II) U
PON MOTION BY THE INDIVIDUAL , THE VENUE OF AN ACTION
FILED IN ANOTHER COURT OF THE STATE OF
COLORADO AGAINST THE
INDIVIDUAL BY THE DEFENDANT
, THE EMPLOYER OF THE PERSON WHO
BROUGHT THE ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION, OR
OTHER PERSON ARISING OUT OF THE SUBJECT MATTER OF THE ACTION
BROUGHT PURSUANT TO SUBSECTION
(3) OF THIS SECTION MUST BE CHANGED
TO THE COURT HEARING THE ACTION BROUGHT PURSUANT TO SUBSECTION
(3) OF THIS SECTION.
(9) Discovery in other actions. (a) I
F A PERSON WHO BRINGS AN
ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION IS A PARTY TO OR
WITNESS IN AN ACTION OTHER THAN AN ACTION BROUGHT PURSUANT TO
SUBSECTION
(3) OF THIS SECTION, REFERRED TO IN THIS SUBSECTION (9) AS
AN
"OTHER ACTION", AND A PARTY IN THE OTHER ACTION SEEKS DISCOVERY
FROM THE PERSON OF INFORMATION ABOUT OTHER LAWSUITS
, WHICH
DISCOVERY WOULD REQUIRE THE PERSON TO DISCLOSE INFORMATION ABOUT
AN ACTION FILED PURSUANT TO SUBSECTION
(3) OF THIS SECTION WHILE
THAT ACTION IS STILL UNDER SEAL
, THE PERSON SHALL:
(I) W
ITHIN A REASONABLE TIME, NOTIFY THE STATE INVESTIGATING
THE ACTION BROUGHT PURSUANT TO SUBSECTION
(3) OF THIS SECTION OF
THE PENDING DISCOVERY REQUEST
; AND
(II) RESPOND TO THE DISCOVERY REQUEST BY STATING ONLY THAT
THE MATTER IS CONFIDENTIAL
, WITHOUT FURTHER ELABORATION , AND
SHALL MAINTAIN THAT RESPONSE UNTIL THE STATE ELECTS TO PROCEED OR
NOT PROCEED WITH THE ACTION BROUGHT PURSUANT TO SUBSECTION
(3) OF
PAGE 20-HOUSE BILL 22-1119 THIS SECTION OR UNTIL THE COURT LIFTS THE SEAL.
(b) I
F NECESSARY, IN ANY OTHER ACTION, A PERSON WHO BROUGHT
THE ACTION PURSUANT TO SUBSECTION
(3) OF THIS SECTION OR THE
ATTORNEY GENERAL MAY FILE AN EX PARTE MOTION
, IN CAMERA AND
UNDER SEAL
, SEEKING A PROTECTIVE ORDER OR AN EXTENSION OF TIME FOR
THE PERSON TO RESPOND TO A DISCOVERY REQUEST
. IF A PARTY IN THE
OTHER ACTION MOVES TO COMPEL AN ANSWER TO THE DISCOVERY
, THE
PERSON WHO BROUGHT THE ACTION PURSUANT TO SUBSECTION
(3) OF THIS
SECTION SHALL FILE
, EX PARTE AND IN CAMERA, A RESPONSE TO THE MOTION
TO COMPEL
, IN WHICH THE ATTORNEY GENERAL MAY JOIN. THE RESPONSE TO
THE MOTION TO COMPEL MUST REMAIN UNDER SEAL UNTIL SUCH TIME AS THE
STATE ELECTS TO PROCEED OR NOT PROCEED WITH THE ACTION OR UNTIL
SUCH TIME AS THE COURT LIFTS THE SEAL
.
(c) N
OTWITHSTANDING ANY PROVISION OF THIS SUBSECTION (9) TO
THE CONTRARY
, INFORMATION ABOUT AN ACTION FILED PURSUANT TO
SUBSECTION
(3) OF THIS SECTION THAT IS PROTECTED BY THE DEFENDANT 'S
ATTORNEY
-CLIENT PRIVILEGE IS NOT DISCOVERABLE IN ANY OTHER ACTION
UNLESS THE PRIVILEGE WAS WAIVED
, INADVERTENTLY OR OTHERWISE , BY
THE PERSON WHO HOLDS THE PRIVILEGE
; AN EXCEPTION TO THE PRIVILEGE
APPLIES
; OR DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN
ATTORNEY PURSUANT TO
17 CFR 205.3 (d)(2), THE APPLICABLE COLORADO
RULES OF PROFESSIONAL CONDUCT
, OR OTHERWISE.
24-31-1205. False claims action procedures - limitation on action
- standard of proof. (1) A
CIVIL ACTION PURSUANT TO SECTION 24-31-1204
MAY NOT BE BROUGHT AFTER THE LATER OF :
(a) M
ORE THAN SIX YEARS AFTER THE DATE ON WHICH THE
VIOLATION OF SECTION
24-31-1203 IS COMMITTED OR THE DATE ON WHICH
THE LAST IN A SERIES OF SUCH ACTS OR PRACTICES OCCURRED
, WHICHEVER
IS LATER
; OR
(b) MORE THAN THREE YEARS AFTER THE DATE ON WHICH FACTS
MATERIAL TO THE RIGHT OF ACTION ARE KNOWN OR REASONABLY SHOULD
HAVE BEEN KNOWN BY THE OFFICIAL OF THE STATE CHARGED WITH
RESPONSIBILITY TO ACT IN THE CIRCUMSTANCES
, BUT IN NO EVENT MORE
THAN TEN YEARS AFTER THE DATE ON WHICH THE VIOLATION OF SECTION
24-31-1203 WAS COMMITTED.
PAGE 21-HOUSE BILL 22-1119 (2) (a) IF THE STATE ELECTS TO INTERVENE AND PROCEED WITH AN
ACTION BROUGHT PURSUANT TO SECTION
24-31-1204, THE STATE MAY FILE
ITS OWN COMPLAINT OR AMEND THE ORIGINAL COMPLAINT TO
:
(I) C
LARIFY AND ADD DETAIL, AND ADD ADDITIONAL DEFENDANTS ,
TO THE CLAIMS IN WHICH THE STATE IS INTERVENING ; AND
(II) ADD ANY ADDITIONAL CLAIMS AND DEFENDANTS WITH RESPECT
TO WHICH THE STATE CONTENDS IT IS ENTITLED TO RELIEF
.
(b) F
OR STATUTE OF LIMITATIONS PURPOSES, ANY PLEADINGS BY THE
STATE RELATE BACK TO THE FILING DATE OF THE ORIGINAL COMPLAINT FILED
BY A PERSON PURSUANT TO SECTION
24-31-1204 (3), TO THE EXTENT THAT
THE STATE
'S CLAIM ARISES OUT OF THE CONDUCT , TRANSACTIONS, OR
OCCURRENCES SET FORTH
, OR ATTEMPTED TO BE SET FORTH , IN THE
ORIGINAL COMPLAINT
.
(3) I
N AN ACTION BROUGHT PURSUANT TO SECTION 24-31-1204, THE
STATE OR PERSON WHO BROUGHT THE ACTION PURS UANT TO SECTION
24-31-1204 (3) MUST PROVE ALL ESSENTIAL ELEMENTS OF THE CAUSE OF
ACTION
, INCLUDING DAMAGES, BY A PREPONDERANCE OF THE EVIDENCE .
(4) N
OTWITHSTANDING ANY OTHER PROVISION OF LAW , THE
COLORADO RULES OF CRIMINAL PROCEDURE , OR THE COLORADO RULES OF
EVIDENCE
, A FINAL JUDGMENT RENDERED IN FAVOR OF THE STATE IN A
CRIMINAL PROCEEDING CHARGING FRAUD OR FALSE STATEMENTS
, WHETHER
UPON A VERDICT AFTER TRIAL OR UPON A PLEA OF GUILTY OR NOLO
CONTENDERE
, SHALL ESTOP THE DEFENDANT FROM DENYING THE ESSENTIAL
ELEMENTS OF THE OFFENSE IN ANY ACTION THAT I NVOLVES THE SAME
TRANSACTION AS IN THE CRIMINAL PROCEEDING AND THAT IS BROUGHT
PURSUANT TO SECTION
24-31-1204.
24-31-1206. Jurisdiction. A
N ACTION DESCRIBED IN THIS PART 12
MAY BE BROUGHT IN ANY JUDICIAL DISTRICT IN WHICH THE DEFENDANT OR ,
IN THE CASE OF MULTIPLE DEFENDANTS , ANY ONE DEFENDANT CAN BE
FOUND
, RESIDES, OR TRANSACTS BUSINESS, OR IN WHICH AN ACT PROSCRIBED
BY SECTION
24-31-1203 OCCURRED. A PERSON BRINGING AN ACTION
PURSUANT TO THIS PART
12 SHALL FILE THE COMPLAINT IN A DISTRICT COURT
OR A FEDERAL COURT WITH JURISDICTION OVER THE ACTION AND SHALL NOT
FILE THE COMPLAINT IN ANY OTHER COURT
. THE APPROPRIATE DISTRICT
PAGE 22-HOUSE BILL 22-1119 COURT SHALL ISSUE A SUMMONS AS REQUIRED BY THE COLORADO RULES OF
CIVIL PROCEDURE AND SERVE THE SUMMONS AT ANY PLACE
.
24-31-1207. False claims civil investigation demands. (1) W
HEN
THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO BELIEVE THAT ANY
PERSON
, WHETHER IN THIS STATE OR ELSEWHERE , HAS ENGAGED IN OR IS
ENGAGING IN ANY VIOLATION OF SECTION
24-31-1203, THE ATTORNEY
GENERAL MAY
:
(a) R
EQUEST THE PERSON FILE A STATEMENT OR REPORT IN WRITING
UNDER OATH OR OTHERWISE
, ON FORMS PRESCRIBED BY THE ATTORNEY
GENERAL
, AS TO ALL FACTS AND CIRCUMSTANCES CONCERNING THE
ALLEGED VIOLATIONS BY THE PERSON AND ANY OTHER DATA AND
INFORMATION THE ATTORNEY GENERAL DEEMS NECESSARY
; EXCEPT THAT
THE PERSON IS NOT REQUIRED TO DISCLOSE ANY INFORMATION THAT IS
PROTECTED BY THE PERSON
'S ATTORNEY-CLIENT PRIVILEGE UNLESS THE
PRIVILEGE WAS WAIVED
, INADVERTENTLY OR OTHERWISE , BY THE PERSON
WHO HOLDS THE PRIVILEGE
; AN EXCEPTION TO THE PRIVILEGE APPLIES; OR
DISCLOSURE OF THE INFORMATION IS PERMITTED BY AN ATTORNEY
PURSUANT TO
17 CFR 205.3 (d)(2), THE APPLICABLE COLORADO RULES OF
PROFESSIONAL CONDUCT
, OR OTHERWISE.
(b) E
XAMINE UNDER OATH ANY PERSON IN CONNECTION WITH THE
ALLEGED VIOLATIONS
;
(c) E
XAMINE ANY PROPERTY OR SAMPLE THEREOF , OR ANY
NONPRIVILEGED RECORD
, BOOK, DOCUMENT, ACCOUNT, OR PAPER THE
ATTORNEY GENERAL DEEMS NECESSARY
;
(d) M
AKE TRUE COPIES, AT THE EXPENSE OF THE ATTORNEY
GENERAL
, OF ANY NONPRIVILEGED RECORD , BOOK, DOCUMENT, ACCOUNT,
OR PAPER EXAMINED PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION,
WHICH COPIES MAY BE OFFERED INTO EVIDENCE IN LIEU OF THE ORIGINALS
THEREOF IN AN ACTION BROUGHT PURSUANT TO THIS PART
12; AND
(e) PURSUANT TO ANY ORDER OF ANY DISTRICT COURT , IMPOUND
ANY SAMPLE OF PROPERTY THAT IS MATERIAL TO ANY ALLEGED VIOLATION
OF THIS PART
12 AND RETAIN THE SAME IN THE ATTORNEY GENERAL 'S
POSSESSION UNTIL COMPLETION OF ALL PROCEEDINGS UNDERTAKEN
PURSUANT TO THIS PART
12. A DISTRICT COURT SHALL NOT ISSUE AN ORDER
PAGE 23-HOUSE BILL 22-1119 DESCRIBED IN THIS SUBSECTION (1)(e) WITHOUT GIVING FULL OPPORTUNITY
TO THE ACCUSED TO BE HEARD AND UNLESS THE ATTORNEY GENERAL HAS
PROVEN BY CLEAR AND CONVINCING EVIDENCE THAT THE ORDER WILL NOT
IMPAIR THE BUSINESS ACTIVITIES OF THE PERSON TO WHOM THE ORDER IS
DIRECTED
.
(2) W
HEN THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO
BELIEVE THAT A PERSON
, WHETHER IN THIS STATE OR ELSEWHERE , HAS
ENGAGED IN OR IS ENGAGING IN A VIOLATION OF SECTION
24-31-1203, THE
ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO REQUIRE THE ATTENDANCE
OF WITNESSES OR THE PRODUCTION OF DOCUMENTS
, ADMINISTER OATHS,
CONDUCT HEARINGS IN AID OF ANY INVESTIGATION OR INQUIRY , AND
PRESCRIBE SUCH FORMS AS MAY BE NECESSARY TO ADMINISTER THIS PART
12.
(3) T
HE ATTORNEY GENERAL MAY ISSUE SUBPOENAS TO ANY PUBLIC
OR PRIVATE CORPORATION OR PARTNERSHIP OR ASSOCIATION OR
GOVERNMENTAL ENTITY TO PR ODUCE WITNESSES TO APPEAR AND GIVE ORAL
TESTIMONY AT INVESTIGATIVE HEARINGS
. THE SUBPOENAS MAY DESIGNATE
WITH REASONABLE PARTICULARITY THE MATTERS ON WHICH EXAMINATION
IS REQUESTED
. IN RESPONSE TO THE SUBPOENA , THE ENTITY SHALL
DESIGNATE ONE OR MORE OFFICERS
, DIRECTORS, OR MANAGING AGENTS, OR
DESIGNATE OTHER PERSONS
, TO TESTIFY ON ITS BEHALF.
(4) A
NOTICE OR SUBPOENA MAY BE SERVED IN THE MANNER
PRESCRIBED BY LAW OR AS PROVIDED IN RULE
4 OF THE COLORADO RULES
OF CIVIL PROCEDURE
.
(5) (a) I
F THE RECORDS OF A PERSON WHO HAS BEEN ISSUED A
SUBPOENA ARE LOCATED OUTSIDE THIS STATE
, THE PERSON SHALL EITHER:
(I) M
AKE THEM AVAILABLE TO THE ATTORNEY GENERAL EITHER
ELECTRONICALLY OR AT A CONVENIENT LOCATION WITHIN THIS STATE
; OR
(II) PAY THE REASONABLE AND NECESSARY EXPENSES FOR THE
ATTORNEY GENERAL
, OR THE ATTORNEY GENERAL'S DESIGNEE, TO EXAMINE
THE RECORDS AT THE PLACE WHERE THEY ARE MAINTAINED
.
(b) T
HE ATTORNEY GENERAL MAY DESIGNATE REPRESENTATIVES ,
INCLUDING COMPARABLE OFFICIALS OF THE STATE IN WHICH THE RECORDS
PAGE 24-HOUSE BILL 22-1119 ARE LOCATED, TO INSPECT THE RECORDS ON BEHALF OF THE ATTORNEY
GENERAL
.
(6) I
F ANY PERSON FAILS TO COOPERATE WITH ANY INVESTIGATION
PURSUANT TO THIS SECTION OR FAILS TO OBEY ANY SUBPOENA ISSUED
PURSUANT TO THIS SECTION
, THE ATTORNEY GENERAL MAY APPLY TO THE
APPROPRIATE DISTRICT COURT FOR AN APPROPRIATE ORDER TO EFFECTUATE
THE PURPOSES OF THIS PART
12. AT THE REQUEST OF THE ATTORNEY
GENERAL
, THE APPLICATION MAY BE FILED IN CAMERA AND KEPT
CONFIDENTIAL TO MAINTAIN THE CONFIDENTIALITY OF THE ATTORNEY
GENERAL
'S INVESTIGATION. THE APPLICATION MUST STATE THAT THERE ARE
REASONABLE GROUNDS TO BELIEVE THAT THE ORDER APPLIED FOR IS
NECESSARY TO INVESTIGATE A VIOLATION OF THIS PART
12. IF THE COURT IS
SATISFIED THAT REASONABLE GROUNDS EXIST
, THE COURT IN ITS ORDER
MAY
:
(a) G
RANT APPROPRIATE INJUNCTIVE RELIEF;
(b) R
EQUIRE ATTENDANCE OF OR THE PRODUCTION OF DOCUMENTS
BY THE PERSON
, OR BOTH;
(c) G
RANT OTHER OR FURTHER RELIEF AS MAY BE NECESSARY TO
OBTAIN COMPLIANCE BY THE PERSON
.
24-31-1208. Rule-making. T
HE ATTORNEY GENERAL MAY
PROMULGATE RULES NECESSARY TO IMPLEMENT THIS PART
12.
24-31-1209. Use of recoveries - false claims recovery cash fund
- creation. (1) T
HE STATE TREASURER SHALL TRANSFER ALL PROCEEDS
RETAINED BY THE STATE FROM A FALSE CLAIMS ACTION BROUGHT PURSUANT
TO THIS PART
12 TO THE FALSE CLAIMS RECOVERY CASH FUND , WHICH IS
HEREBY CREATED
.
(2) A
NY MONEY IN THE FUND NOT EXPENDED FOR THE PURPOSE OF
THIS SECTION MAY BE INVESTED BY THE STATE TREASURER AS PROVIDED BY
LAW
. ALL INTEREST AND INCOME DERIVED FROM INVESTMENT AND DEPOSIT
OF MONEY IN THE FUND SHALL BE CREDITED TO THE FUND
.
(3) (a) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL
ASSEMBLY
, THE DEPARTMENT MAY EXPEND MONEY FROM THE FUND FOR
PAGE 25-HOUSE BILL 22-1119 NECESSARY ACTUAL COSTS OF CARRYING OUT ITS DUTIES PURSUANT TO THIS
PART
12.
(b) (I) W
HEN PROCEEDS RETAINED BY THE STATE FROM A FALSE
CLAIMS ACTION ARE DEPOSITED INTO THE FUND
, THE ATTORNEY GENERAL
SHALL DETERMINE THE AMOUNT OF THE PROCEEDS THAT SHOULD REMAIN IN
THE FUND FOR USE BY THE DEPARTMENT FOR THE COSTS OF CARRYING OUT
ITS DUTIES PURSUANT TO THIS PART
12 AND THE AMOUNT OF ANY PROCEEDS
DEPOSITED INTO THE FUND THAT ARE ATTRIBUTABLE TO A POLITICAL
SUBDIVISION
.
(II) I
F THE AMOUNT OF THE PROCEEDS IS EQUAL TO OR EXCEEDS THE
AMOUNT OF THE FALSE CLAIM PLUS THE DEPARTMENT
'S COSTS, THE
ATTORNEY GENERAL SHALL DIRECT THE STATE TREASURER TO TRANSFER TO
THE ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID AN AMOUNT
EQUAL TO THE FALSE CLAIM
. IF ALL OR PART OF THE PROCEEDS ARE
ATTRIBUTABLE TO A POLITICAL SUBDIVISION
, THE ATTORNEY GENERAL
SHALL DIRECT THE TREASURER TO PAY TO THE POLITICAL SUBDIVISION
, AS
DESCRIBED IN SUBSECTION
(3)(c) OF THIS SECTION, AN AMOUNT EQUAL TO
THE FALSE CLAIM
.
(III) I
F THE AMOUNT OF THE PROCEEDS IS LESS THAN THE AMOUNT
OF THE FALSE CLAIM PLUS THE DEPARTMENT
'S COSTS, THE ATTORNEY
GENERAL SHALL DIRECT THE STATE TREASURER TO TRANSFER TO THE
ORIGINAL FUND FROM WHICH THE FALSE CLAIM WAS PAID A PRO
-RATED
AMOUNT BASED ON THE ACTUAL RECOVERY
. IF ALL OR PART OF THE
PROCEEDS ARE ATTRIBUTABLE TO A POLITICAL SUBDIVISION
, THE ATTORNEY
GENERAL SHALL DIRECT THE TREASURER TO PAY TO THE POLITICAL
SUBDIVISION
, AS DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION, A
PRO
-RATED AMOUNT BASED ON THE ACTUAL RECOVERY .
(IV) F
OR THE PURPOSES OF A FALSE CLAIMS ACTION INVOLVING A
VIOLATION OF SECTION
24-31-1203(1)(g), THE RELEVANT FUND IS THE
UNEMPLOYMENT COMPENSATION FUND ESTABLISHED IN SECTION
8-77-101.
(c) N
O LATER THAN SEVEN DAYS AFTER THE ATTORNEY GENERAL
DIRECTS THE STATE TREASURER TO MAKE A PAYMENT TO A POLITICAL
SUBDIVISION PURSUANT TO SUBSECTION
(3)(b) OF THIS SECTION, THE STATE
TREASURER SHALL ISSUE A WARRANT TO BE PAID UPON DEMAND FROM THE
FUND TO THE POLITICAL SUBDIVISION IN THE AMOUNT SPECIFIED BY THE
PAGE 26-HOUSE BILL 22-1119 ATTORNEY GENERAL.
(4) A
NY UNEXPENDED AND UNENCUMBERED MONEY REMAINING IN
THE FUND AT THE END OF A FISCAL YEAR SHALL REMAIN IN THE FUND AND
SHALL NOT BE CREDITED OR TRANSFERRED TO ANOTHER FUND
.
24-31-1210. No limitations on common law authority - medicaid
fraud control. N
OTHING IN THIS PART 12 AFFECTS, LIMITS, OR SUPPLANTS
THE COMMON LAW AUTHORITY OF THE ATTORNEY GENERAL OR THE
DEPARTMENT TO INVESTIGATE AND PROSECUTE MEDICAID FR AUD PURSUANT
TO PART
8 OF THIS ARTICLE 31.
24-31-1211. False claims act report. (1) O
N OR BEFORE JANUARY
15, 2024, AND ON OR BEFORE EACH JANUARY 15 THEREAFTER, THE
ATTORNEY GENERAL SHALL SUBMIT A WRITTEN REPORT TO THE HOUSE OF
REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE
, THE HOUSE
OF REPRESENTATIVES JUDICIARY COMMITTEE
, THE SENATE BUSINESS, LABOR,
AND TECHNOLOGY COMMITTEE , AND THE SENATE JUDICIARY COMMITTEE , OR
THEIR SUCCESSOR COMMITTEES
, CONCERNING CLAIMS BROUGHT PURSUANT
TO THIS PART
12 DURING THE PREVIOUS FISCAL YEAR . THE REPORT MUST
INCLUDE
, BUT IS NOT LIMITED TO:
(a) T
HE NUMBER OF ACTIONS BROUGHT BY THE ATTORNEY GENERAL
AND THE DISPOSITION OF THE ACTIONS
;
(b) T
HE AMOUNT OF PROCEEDS RECOVERED BY THE STATE THROUGH
SETTLEMENT OR JUDGMENT IN AN ACTION BROUGHT PURSUANT TO THIS PART
12, INCLUDING:
(I) T
HE CASE NUMBER AND PARTIES FOR EACH ACTION IN WHICH
PROCEEDS WERE RECOVERED
;
(II)
THE AMOUNT OF PROCEEDS RECOVERED IN EACH CASE ,
CATEGORIZED BY THE AMOUNT RECOVERED AS DAMAGES , PENALTIES, AND
LITIGATION COSTS
; AND
(III) IF APPLICABLE, THE PERCENTAGE OF THE PROCEEDS RECOVERED
AND THE TOTAL AMOUNT AWARDED TO A PRIVATE PERSON WHO BROUGHT
THE ACTION
.
(c) T
HE NUMBER OF ACTIONS BROUGHT BY A PERSON OTHER THAN
PAGE 27-HOUSE BILL 22-1119 THE ATTORNEY GENERAL IN WHICH THE ATTORNEY GENERAL DID NOT
INTERVENE
, WHETHER THE ACTIONS WERE CONTINUED BY THE OTHER
PERSON
, AND THE DISPOSITION OF THE ACTIONS;
(d) T
HE AMOUNT OF PROCEEDS, INCLUDING ANY LITIGATION COSTS
AND ATTORNEY FEES
, RECOVERED THROUGH SETTLEMENT OR JUDGMENT IN
ACTIONS BROUGHT BY A PERSON OTHER T HAN THE ATTORNEY GENERAL
; AND
(e) THE AMOUNT EXPENDED BY THE STATE FOR INVESTIGATION AND
LITIGATION OF FALSE CLAIMS PURSUANT TO THIS PART
12 AND ALL OTHER
COSTS RELATED TO THIS PART
12.
(2) N
OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE REPORTING
REQUIREMENT DESCRIBED IN THIS SECTION CONTINUES INDEFINITELY
.
SECTION 3. In Colorado Revised Statutes, 2-3-109, add (3) as
follows:
2-3-109. Emergency reports. (3) I
F THE STATE AUDITOR IN THE
COURSE OF AN AUDIT FINDS EVIDENCE OF APPARENTLY FALSE CLAIMS
RELATED TO PUBLIC FUNDS OR PROPERTY
, THE STATE AUDITOR SHALL
IMMEDIATELY REPORT SUCH TRANSACTIONS TO THE COMMITTEE AND SHALL
FILE A WRITTEN COPY OF THE REPORT WITH THE ATTORNEY GENERAL
.
SECTION 4. In Colorado Revised Statutes, 2-3-110.5, amend
(3)(a)(II) as follows:
2-3-110.5. Fraud hotline - investigations - confidentiality - access
to records - definitions. (3) (a) (II) The state auditor shall forward all
hotline calls alleging fraud by a medicaid recipient to the department of
health care policy and financing, and
all calls alleging fraud by a medicaid
provider or contractor to the medicaid fraud control unit of the office of the
attorney general,
AND ALL CALLS ALLEGING FRAUD IN VIOLATION OF THE
"COLORADO FALSE CLAIMS ACT", PART 12 OF ARTICLE 31 OF TITLE 24, TO
THE ATTORNEY GENERAL UNLESS THE ALLEGATION RELATES TO A STATE
EMPLOYEE IN THE PERFORMANCE OF THE EMPLOYEE
'S DUTIES.
SECTION 5. Appropriation. For the 2022-23 state fiscal year,
$13,568 is appropriated to the legislative department for use by the office
of the state auditor. This appropriation is from the general fund. The office
PAGE 28-HOUSE BILL 22-1119 may use this appropriation to implement this act.
SECTION 6. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 29-HOUSE BILL 22-1119 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 30-HOUSE BILL 22-1119