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Regular Session, 2012
SENATE BILL NO. 765 (Substitute of Senate Bill No.251 by Senator Morrish)
BY SENATOR MORRISH
INSURANCE CLAIMS. Creates the Louisiana Fraud Prevention Act. (8/1/12)
AN ACT1
To enact R.S. 22:1923(3) and Part II-A of Chapter 7 of Title 22 of the Louisiana Revised2
Statutes of 1950, to be comprised of R.S.22:1931 through 1931.13, relative to3
insurance fraud; to provide definitions; to prohibit insurance fraud; to provide for4
civil actions and monetary penalties; to provide with respect to civil investigative5
demand and deposition; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:1923(3) and Part II-A of Chapter 7 of Title 22 of the Louisiana8
Revised Statutes of 1950, comprised of R.S. 22:1931 through 1931.13 are hereby enacted9
to read as follows:10
§1923. Definitions11
* * *12
(3) "Claim" shall mean any request or demand for payment or benefit,13
whether paid or not, made by a person either in writing or filed electronically,14
and shall include requests for payment, benefits, or both on pre-service and15
post-service basis.16
* * *17 SB NO. 765
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PART II-A. LOUISIANA INSURANCE FRAUD PREVENTION ACT1
§1931. Legislative findings2
The legislature finds that to protect the health, safety, and welfare of the3
citizens of this state, the attorney general of Louisiana and his assistants shall4
be agents of this state with the ability, authority, and resources to pursue civil5
monetary penalties, liquidated damages, or other remedies to protect the6
integrity of the insurance industry from persons who engage in fraud,7
misrepresentation, abuse, or other illegal practices, as further provided in this8
Part, in order to obtain payments to which these insurance providers or persons9
are not entitled.10
§1931.1. Definitions11
As used in this Part the following terms shall have the following12
meanings unless a different meaning is clearly required by context:13
(1) "Agent" means a person who is employed by or has a contractual14
relationship with another person or who acts on behalf of that person.15
(2) "Attorney general" means the attorney general for the state of16
Louisiana.17
(3) "Department" means the Department of Insurance.18
(4) "Insurer" means any person or other entity authorized to transact19
and transacting insurance business in this state. Notwithstanding any contrary20
provisions of R.S. 22:242(7) or any other law, regulation, or definition contained21
in this Code, a health maintenance organization shall be deemed an insurer for22
purposes of this Part.23
(5) "Knowing" or "knowingly" means that the person has actual24
knowledge of the falsity of the information or that the person acts in deliberate25
ignorance or reckless disregard of the truth or falsity of the information.26
(6) "Order" means a final order imposed pursuant to a civil or criminal27
adjudication.28
(7) "Person" means any natural or juridical entity or agent thereof as29 SB NO. 765
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defined in federal or state law furnishing or claiming to furnish a good, service,1
or supply who is compensated with insurance proceeds.2
(8) "P.O.S.T.-certified" means peace officer standards and training3
certified as established by the Louisiana Peace Officer Standards and Training4
Council.5
(9) "Property" means any and all property, movable and immovable,6
corporeal and incorporeal.7
(10) "Recovery" means the recovery of attempted benefits pursued,8
overpayments, damages, fines, penalties, costs, expenses, restitution, attorney9
fees, interest, or settlement amounts.10
§1931.2. Prescription11
A. No action brought pursuant to this Part shall be instituted later than12
ten years after the date upon which the alleged violation occurred. For13
violations involving a scheme or course of conduct, no action pursuant to this14
Part shall be instituted more than ten years after the latest component of the15
scheme or course of conduct occurred.16
B. To the extent that the conduct giving rise to the cause of action17
involves the provision of services, supplies, merchandise, or benefits of a18
medical assistance program administered by the Department of Health and19
Hospitals, including any medical assistance programs administered by the state20
pursuant to 42 U.S.C. 1396 et. seq., the provisions of this Part shall not apply.21
C. An action by a prevailing defendant to recover costs, expenses, fees,22
and attorney fees pursuant to R.S. 22:1931.3 may be brought no later than sixty23
days after the rendering of a final nonappealable judgment. In the instance of24
a state criminal action, the action for recovery of the civil monetary penalty25
shall be brought within one year of the date of the criminal conviction, final26
plea, or pre-trial diversion agreement.27
D.(1) In the case of a civil judgment rendered in federal court, the action28
for recovery of the civil monetary penalty pursuant to R.S. 22:1931.6 may be29 SB NO. 765
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brought after the judgment becomes enforceable and no later than one year1
after written notification to the attorney general of the enforceable judgment.2
(2) In the case of a criminal conviction, final plea, or pre-trial diversion3
agreement in federal court, the action for recovery pursuant to this Part may4
be brought after the conviction or plea is final and no later than one year after5
written notification to the attorney general of the rendering of the conviction or6
final plea.7
(3) Any action for recovery brought pursuant to the provisions of this8
Part shall be filed in the Nineteenth Judicial District Court for the Parish of9
East Baton Rouge.10
§1931.3. Civil actions authorized11
A. No person shall knowingly commit any fraudulent insurance act as12
defined in R.S. 22:1923 or violate any provision of R.S. 22:1924.13
B. The attorney general may institute a civil action in the Nineteenth14
Judicial District Court for the parish of East Baton Rouge to seek recovery from15
any person or persons who violate any provision of R.S. 22:1924. Each violation16
may be treated as a separate violation or may be combined into one violation at17
the option of the attorney general.18
C. An action by a prevailing defendant to recover costs, expenses, fees,19
and attorney fees shall be ancillary to and shall be brought and heard in the20
same court as the civil action brought pursuant to the provisions of Subsection21
B of this Section.22
D. A prevailing defendant may seek recovery only for costs, expenses,23
fees, and attorney fees if the court finds, following a contradictory hearing, that24
either of the following applies:25
(1) The action was instituted by the attorney general pursuant to26
Subsection A of this Section after it should have been determined by the27
attorney general to be frivolous, vexatious, or brought primarily for the purpose28
of harassment.29 SB NO. 765
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(2) The attorney general proceeded with an action properly instituted1
pursuant to Subsection A of this Section after it should have been determined2
by the attorney general that proceeding would be frivolous, vexatious, or for the3
purpose of harassment.4
E. Any action brought pursuant to the provisions of this Part shall be5
filed in the Nineteenth Judicial District Court for the Parish of East Baton6
Rouge.7
§1931.4. Burden of proof; prima facie evidence; standard of review8
A. The burden of proof in an action instituted pursuant to this Part shall9
be a preponderance of the evidence.10
B. Proof by a preponderance of the evidence of a violation of R.S.11
22:1924 shall be deemed to exist if the defendant has pleaded guilty to, been12
convicted of, or entered a plea of nolo contendere to, or participated in a pre-13
trial diversion program for a criminal charge in any federal or state court when14
such charge arises out of circumstances which would be a violation of R.S.15
22:1924.16
C. The submission of a certified or true copy of an order, a civil17
judgment in a state or federal court, or a criminal conviction, final plea, or pre-18
trial diversion agreement shall be prima facie evidence of the same. The19
submission of the bill of information or of the indictment and the minutes of the20
court shall be prima facie evidence as to the circumstances underlying a21
criminal conviction, final plea, or pre-trial diversion agreement.22
§1931.5. Civil monetary penalty23
A. In a civil action instituted in the Nineteenth Judicial District Court for24
the parish of East Baton Rouge pursuant to the provisions of this Part, the25
attorney general may seek a civil monetary penalty provided in R.S. 22:1931.626
from any of the following:27
(1) Any person determined by a court of competent jurisdiction to have28
violated any provision of R.S. 22:1924.29 SB NO. 765
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(2) Any person who has violated a settlement agreement entered into1
pursuant to this Part.2
(3) A person who has been found liable in a civil action filed in federal3
court pursuant to 18 U.S.C. 1347 et seq., or 42 U.S.C. 1320a-7(a) or (b), et seq.,4
or 31 U.S.C. 3729.5
(4) A person who has entered a plea of guilty or nolo contendere to or has6
participated in a pre-trial diversion program for, or has been convicted in7
federal or state courts of criminal conduct arising out of circumstances which8
would constitute a violation of R.S. 22:1924.9
§1931.6. Recovery10
A.(1) Actual damages incurred as a result of a violation of the provisions11
of this Part shall be recovered only once by the insurer and shall not be waived12
by the court.13
(2) Except as provided in Paragraph (3) of this Subsection, actual14
damages shall equal the difference between the amount the insurer paid or15
would have paid and the amount that would have been due had not a violation16
of this Part occurred, plus interest at the maximum rate of judicial interest17
provided by R.S. 13:4202, from the date the damage occurred to the date of18
repayment. Actual damages shall include investigative expenses incurred by the19
insurer.20
(3) If the violator is a managed care healthcare provider contracted with21
a health insurer, actual damages shall be determined in accordance with the22
violator's provider agreement.23
B. Any person who is found to have violated R.S. 22:1924 shall be subject24
to a civil fine in an amount not to exceed ten thousand dollars per violation.25
C. In addition to the actual damages provided in Subsection A of this26
Section and any civil fine imposed pursuant to Subsection B of this Section, a27
civil monetary penalty shall be imposed on the violator in an amount which28
equals three times the benefit pursued, including actual damages as a result of29 SB NO. 765
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the violation.1
D.(1) Any person who is found to have violated this Part shall be liable2
for all costs, expenses, and fees related to investigations and proceedings3
associated with the violation, including attorney fees.4
(2) All awards of costs, expenses, fees, and attorney fees are subject to5
review by the appellate court for abuse of discretion.6
(3) The attorney general shall promptly remit awards recovered for7
those costs, expenses, and fees incurred by the parties involved in the8
investigations or proceedings to the appropriate party.9
E.(1) Payment of interest on the amount of the civil fine imposed10
pursuant to Subsection B of this Section shall be at the maximum rate of legal11
interest provided by R.S. 13:4202 from the date the damage occurred to the date12
of repayment.13
(2) Prior to the imposition of a civil monetary penalty, the court may14
consider whether extenuating circumstances exist as provided in R.S. 22:1931.7.15
§1931.7. Waiver; extenuating circumstances16
If a waiver is requested by the attorney general, the court may waive any17
recovery, except for actual damages, required to be imposed pursuant to the18
provisions of this Part provided all of the following extenuating circumstances19
are found to be applicable:20
(1) The violator furnished all the information known to him about the21
specific allegation to the department or attorney general no later than thirty22
days after the violator first obtained the information.23
(2) The violator cooperated fully with all federal or state investigations24
concerning the specific allegation.25
(3) At the time the violator furnished the information concerning the26
specific allegation to the department or the attorney general, no criminal, civil,27
or departmental investigation or proceeding had been commenced as to the28
alleged violation.29 SB NO. 765
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§1931.8. Deposit of monies collected1
All monies collected pursuant to this Part shall be dedicated to and2
deposited into the Insurance Fraud Investigation Fund pursuant to R.S.3
40:1428(C). Forty percent of the monies deposited into the fund pursuant to4
this Part shall be allocated from the fund to the attorney general's office for5
purposes as provided by law.6
§1931.9. Assessment reduction or recalculation7
Except as provided in this Part, there shall be no reduction or8
recalculation in the Insurance Fraud Investigation Fund assessment as provided9
in R.S. 40:1428.10
§1931.10. Civil investigative demand11
A. If the attorney general has information, evidence, or reason to believe12
that any person or entity may be in possession, custody, or control of any13
documentary material or information relevant to an investigation for a possible14
violation of this Part, he or any of his assistants may issue to the person or entity15
a civil investigative demand before the commencement of a civil proceeding to16
require the production of the documentary material for inspection or copying17
or reproduction, or the answering under oath and in writing of interrogatories.18
Any civil investigative demand issued pursuant to this Part shall state a general19
description of the subject matter being investigated and the applicable20
provisions of law constituting the alleged violation of this Part. A civil21
investigative demand for the production of documentary material shall describe22
each class of documentary material to be produced with such definiteness and23
certainty as to permit such material to be fairly identified. A civil investigative24
demand for answers to written interrogatories shall set forth with specificity the25
written interrogatories to be answered. Each investigative demand shall set a26
return date of no earlier than twenty days after service of the demand upon the27
person or his representative or agent.28
B. A civil investigative demand issued pursuant to this Part may be29 SB NO. 765
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served by the sheriff or a P.O.S.T.-certified investigator employed by the1
attorney general or by the office of state police when the demand is issued to a2
resident or a domestic business entity found in this state. A civil investigative3
demand issued to a non-resident or a foreign business entity may be served4
using long-arm jurisdiction as provided for in the Code of Civil Procedure.5
C. Upon failure to comply with the civil investigative demand, the6
attorney general may apply to the district court having jurisdiction over the7
person to compel compliance with the civil investigative demand.8
D. Except as otherwise provided in this Section, no documentary9
material, answers to interrogatories, or copies thereof, while in the possession10
of the attorney general or any other agency assisting the attorney general with11
the matter under investigation, shall be available for examination by any person12
or entity except as determined by the attorney general and subject to any13
conditions imposed by him for effective enforcement of the laws of this state.14
Nothing in this Section shall be construed to prohibit or limit the attorney15
general from sharing any documentary material, answers to interrogatories, or16
copies thereof with the United States government, any other state government,17
any federal or state agency, or any person or entity that may be assisting in the18
investigation or prosecution of the subject matter of the civil investigative19
demand.20
E. The attorney general may use documentary material derived from21
information obtained pursuant to this Section, or copies of that material, as the22
attorney general determines necessary for the enforcement of the laws of this23
state, including presentation before a court.24
F. If any documentary material has been produced by any person or25
entity in the course of any investigation pursuant to a civil investigative demand26
and any case or proceeding before the court or grand jury arising out of such27
investigation, or any proceeding before any state agency involving such material28
has been completed, or if no case or proceeding in which such material may be29 SB NO. 765
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used has been commenced within a reasonable time after analysis of all1
documentary material and other information assembled in the course of the2
investigation, the attorney general, upon written request of the person or entity3
who produced the material, shall return to such person or entity any such4
material that has not passed into the control of any court, grand jury, or agency5
through introduction into the record of such case or proceeding.6
G. "Documentary material" as used in this Section shall include but is7
not limited to all electronically-stored information including writings, drawings,8
graphs, charts, photographs, sound recordings, images, and other data or data9
compilations that would be subject to a request for production under Federal10
Rule of Civil Procedure 34 as it exists now or is hereafter amended.11
§1931.11. Investigative deposition12
A. When the attorney general has information, evidence, or reason to13
believe that a violation of this Part has occurred, the attorney general may issue14
an investigative subpoena for deposition testimony to any person or entity that15
may have information or knowledge relevant to the matter under investigation,16
or for the purpose of revealing, identifying, or explaining documentary material17
or other physical evidence sought under R.S. 22:1940. Such investigative18
subpoena shall contain a general description of the matter under investigation19
and a notice informing the prospective deponent of his right to counsel at the20
deposition with opportunity for cross-examination. Such deposition shall be21
conducted at the principal place of business of the deponent, at his place of22
residence, at his domicile, or, if agreeable to the deponent, at some other place23
convenient to the attorney general and the lawful and designated attorney24
representative of the deponent. Such deposition shall be held at a date no earlier25
than seven days after the date on which demand is received, unless the attorney26
general or an assistant attorney general designated by the attorney general27
determines that exceptional circumstances are present which warrant the28
commencement of such testimony within a lesser period of time.29 SB NO. 765
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B. An investigative subpoena issued pursuant to this Part may be served1
by the sheriff or a P.O.S.T.-certified investigator employed by the attorney2
general or by the office of state police when the demand is issued to a resident3
or a domestic business entity of this state. An investigative subpoena issued to4
a non-resident or a foreign business entity may be served using long-arm5
jurisdiction as provided for in the Code of Civil Procedure.6
C. When the investigative subpoena is issued to a business entity, the7
entity shall designate one or more officers, directors, or managing agents, who8
are responsible for complying with the subpoena on the entity's behalf, and may9
set forth, for each person designated, the matters on which he will testify. The10
persons so designated shall testify as to matters known or reasonably available11
to the organization.12
D. Upon failure of a person or entity to comply with the investigative13
subpoena, the attorney general may apply to the district court having14
jurisdiction over the person to compel compliance with the investigative15
subpoena. Failure to comply with a court order is punishable by contempt.16
§1931.12. Asset forfeiture17
A. In accordance with the provisions of Subsection B of this Section, the18
court may order the forfeiture of property to satisfy recovery pursuant to this19
Part under either of the following circumstances:20
(1) The court may order a person from whom recovery is due to forfeit21
property which constitutes or was derived directly or indirectly from gross22
proceeds traceable to the violation which forms the basis for the recovery.23
(2) If the attorney general shows that property was transferred to a third24
party to avoid paying recovery, or in an attempt to protect the property from25
forfeiture, the court may order the third party to forfeit the transferred26
property.27
B. Prior to the forfeiture of property, a contradictory hearing shall be28
held during which the attorney general shall prove by clear and convincing29 SB NO. 765
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evidence that the property in question is subject to forfeiture pursuant to1
Subsection A of this Section. No such contradictory hearing shall be required2
if the owner of the property in question agrees to the forfeiture.3
C. If property is transferred to another person within six months prior4
to the occurrence or after the occurrence of the violation for which recovery is5
due or within six months prior to or after the institution of a criminal, civil, or6
departmental investigation or proceeding, it shall be prima facie evidence that7
the transfer was intended to avoid paying recovery or was an attempt to protect8
the property from forfeiture.9
D. The healthcare provider or other person from whom recovery is due10
shall have an affirmative duty to fully disclose all property and liabilities and11
all transfers of property which meet the criteria of Subsection C of this Section12
to the court and the attorney general.13
§1931.13. Termination of Part14
This Part shall terminate on August 1, 2014.15
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
Present law defines "fraudulent insurance act" and "statement" relative to insurance fraud.
Proposed law retains present law and adds a definition for "claim".
Proposed law provides legislative findings that specify that giving the La. attorney general
and his assistants the ability, authority, and resources to pursue civil monetary penalties,
including liquidated damages, or other remedies to protect the integrity of the insurance
industry from persons who engage in fraud, misrepresentation, abuse or other illegal
practices.
Proposed law provides that no action brought pursuant to proposed law shall be instituted
later than ten years after the date upon which the alleged violation occurred. Further
provides that no action for violations involving a scheme or course of conduct shall be
instituted more than ten years after the latest component of the scheme or course of conduct
occurred.
Proposed law provides when the conduct giving rise to the cause of action involves the
provision of services, supplies, merchandise, or benefits of a medical assistance program
administered by the Dept. of Health and Hospitals, proposed law shall not apply. Further
provides that an action by a prevailing defendant to recover costs, expenses, fees and
attorney fees may be brought no later than 60 days after the rendering of a final
nonappealable judgment. In the instance of a state criminal action, the action for recovery SB NO. 765
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of the civil monetary penalty shall be brought within one year of the date of the criminal
conviction, final plea, or pre-trial diversion agreement.
Proposed law provides that in the case of a civil judgment rendered in federal court, the
action for recovery of the civil monetary penalty may be brought once the judgment becomes
enforceable and no later than one year after written notification to the attorney general of the
enforceable judgment. Further provides that in the case of a criminal conviction or plea in
federal court, the action may be brought once the conviction or plea is final and no later than
one year after written notification to the attorney general of the rendering of the conviction
or final plea. Requires any action brought pursuant to proposed law be filed in the 19
th
JDC.
Present law prohibits presenting or causing to be presented any written or oral statement
including computer-generated documents as part of or in support of or denial of a claim for
payment or other benefit pursuant to an insurance policy, knowing that such statement
contains any false, incomplete, or fraudulent information concerning any fact or thing
material to such claim or insurance policy. Further prohibits assisting, abetting, soliciting,
or conspiring with another to prepare or make any written or oral statement that is intended
to be presented to an insurance company, insured, the Dept. of Insurance, or other party in
interest or third party claimant in connection with or in support of or denial, or any claim for
payment of other benefit pursuant to an insurance policy, knowing that such statement
contains any false, incomplete, or fraudulent information concerning any fact or thing
material to such a claim or insurance policy.
Proposed law retains present law and permits the attorney general to institute a civil action
in the courts of this state to seek recovery from any person or persons who violate present
law. Further provides that each violation may be treated as a separate violation or may be
combined into one violation at the option of the attorney general.
Proposed law provides that an action by a prevailing defendant to recover costs, expenses,
fees and attorney fees shall be ancillary to and shall be brought and heard in the same court
as the civil action. Further provides that a prevailing defendant may seek recovery when
either of the following applies:
1. The action was instituted by the attorney general after it should have been
determined by the attorney general to be frivolous, vexatious, or brought primarily
for the purpose of harassment.
2. The attorney general proceeded with a property instituted action after it should have
been determined that proceeding would be frivolous, vexatious, or for the purpose
of harassment.
Proposed law provides that the burden of proof in an action instituted pursuant to proposed
law shall be a preponderance of the evidence. Further provides that proof by a
preponderance of the evidence of a violation of present law shall be deemed to exist if the
defendant has pled guilty to, been convicted of, or entered a plea of nolo contendere to, or
participated in a pre-trial diversion program for a criminal charge in any federal or state
court when such charge arises out of circumstances which would be a violation of present
law.
Proposed law provides for the submission of a certified or true copy of an order, civil
judgment, or criminal conviction or plea shall be prima facie evidence of the same. The
submission of the bill of information or of the indictment and the minutes of the court shall
be prima facie evidence as to the circumstances underlying a criminal conviction or plea.
Proposed law provides that in a civil action instituted in the courts of this state the attorney
general may seek the civil monetary penalty provided in proposed law from any of the
following: SB NO. 765
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1. Any person determined by a court of competent jurisdiction to have violated any
provisions of present law.
2. Any person who has violated a settlement agreement entered into pursuant to
proposed law.
3. A person who has been found liable in a civil action filed in federal court.
4. A person who has entered a plea of guilty or nolo contendere to or has participated
in a pre-trial diversion program for, or has been convicted in federal or state court
of criminal conduct arising out of circumstances which would constitute a violation
of present law.
Proposed law requires actual damages incurred as a result of a violation of the provisions of
proposed law shall be recovered only once by the insurer and shall not be waived by the
court. Further provides that actual damages shall equal the difference between the amount
the insurer paid or would have paid and the amount that would have been due had not a
violation occurred, plus interest at the maximum rate of legal interest from the date the
damage occurred to the date of repayment. Specifies that actual damages shall include
investigative expenses incurred by the insurer. Provides that if the violator is a managed
care health provider contracted with a health insurer, actual damages shall be determined in
accordance with the violator's provider agreement.
Proposed law provides for a civil fine for a violation of present law in an amount not to
exceed $10,000 per violation. Additionally, a civil monetary penalty shall be imposed on
the violator in an amount which equals three times the benefit pursued, including actual
damages as a result of the violation.
Proposed law requires any person who is found to have violated proposed law shall be liable
for all costs, expenses, and fees related to investigations and proceedings associated with the
violation, including attorney fees. Further provides that all awards of costs, expenses, fees,
and attorney fees are subject to review by the court for abuse of discretion. Requires the
attorney general to promptly remit awards for those costs, expenses, and fees incurred by the
parties involved in the investigations or proceedings to the appropriate party. Further
provides for payment of interest on the amount of the civil fine imposed at the maximum
rate of legal interest from the date the damage occurred to the date of repayment.
Proposed law promotes that if a waiver is requested by the attorney general, the court may
waive any recovery, except for actual damages, required to be imposed pursuant to the
provisions of proposed law provided all of the following are found to be applicable:
1. The violator furnished all the information known to him about the allegation to the
department or the attorney general no later than thirty days after the violator first
obtained the information.
2. The violator cooperated fully with all federal or state investigations concerning the
specific allegation.
3. At the time the violator furnished the information concerning the specific allegation
to the department or the attorney general, no criminal, civil, or departmental
investigation or proceeding had been commenced as to the alleged violation.
Proposed law requires all monies collected pursuant to proposed law, to be dedicated to and
deposited into the Insurance Fraud Investigation Fund. Provides that 40% recovered shall
be allocated from the fund to the attorney general's office. Further provides that there shall
be no reduction or recalculation of the Insurance Fraud Investigation Fund as provided in
present law. SB NO. 765
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Proposed law provides that if the attorney general has information, evidence, or reason to
believe that any person or entity may be in possession, custody, or control of any
documentary material or information relevant to an investigation for a possible violation of
proposed law, he or any of his assistants may issue to the person or entity a civil
investigative demand before the commencement of a civil proceeding to require the
production of the documentary material for inspection or copying or reproduction, or the
answering under oath and in writing of interrogatories.
Proposed law requires any civil investigative demand issued shall state a general description
of the subject matter being investigated and the applicable provisions of law constituting the
alleged violation of proposed law. Further provides that a civil investigative demand for the
production of documentary material shall describe each class of documentary material to be
produced with such definiteness and certainty as to permit such material to be fairly
identified.
Proposed law allows a civil investigative demand to be served by the sheriff or a P.O.S.T.-
certified investigator employed by the attorney general or by the office or state police when
the demand is issued to a resident or domestic business entity found in this state. Provides
that a civil investigative demand issued to a non-resident or foreign business entity may be
served using the long-arm jurisdiction as provided in present law.
Proposed law allows the attorney general to apply to the district court having jurisdiction
over the person to compel compliance with the civil investigative demand. Further provides
that no documentary material, answers to interrogatories, or copies thereof, shall be available
for examination by any person except as determined by the attorney general. Prohibits any
part of proposed law to be construed to prohibit or limit the attorney general from sharing
any documentary material, answers to interrogatories, or copies thereof with the U.S.
government or with any other state government, federal or state agency, or any person or
entity that may be assisting in the investigation or prosecution of the subject matter of the
civil investigative demand.
Proposed law allows the attorney general to use documentary material derived from
information obtained, or copies of that material, as the attorney general determines necessary
for the enforcement of the laws of this state, including presentation before a court. Further
provides if any documentary material has been produced by any person or entity in an
investigative demand, the attorney general shall, upon written request of the person or entity
who produced the material, return to such person or entity, any material which has not
passed into the control of the court, grand jury, or agency through introduction into the
record of such case or proceeding.
Proposed law defines documentary material to include all electronically-stored information
including writings, drawings, graphs, charts, photographs, sound recordings, images, and
other data or data compilations that would be subject to a request for productions under
Federal Rule of Civil Procedure 34.
Proposed law allows the attorney general to issue an investigative subpoena for deposition
testimony to any person or entity that may have information or knowledge relevant to the
matter under investigation, or for the purpose of revealing, identifying, or explaining
documentary material or other physical evidence. Such investigative subpoenas shall
contain a general description of the matter under investigation and a notice informing the
deponent of his right to counsel at the deposition with the opportunity for cross-examination.
Provides that the deposition shall be conducted at the principle place of business of the
deponent or at some other place convenient to the attorney general and the lawful and
designated attorney representative of the deponent. Such deposition shall be held at a date
no earlier than seven days after the date on which demand is received, unless the attorney
general or assistant attorney general designated by the attorney general determines that
exceptional circumstances are present which warrant the commencement of such testimony
within a lesser period of time. SB NO. 765
SLS 12RS-3675 ORIGINAL
Page 16 of 16
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law allows an investigative subpoena to be served by the sheriff or a P.O.S.T.-
certified investigator employed by the attorney general or by the office of state police when
the demand is issued to a resident or domestic business entity found in this state. Provides
that an investigative subpoena issued to a non-resident or foreign business entity may be
served using long-arm jurisdiction.
Proposed law allows the court to order the forfeiture of property to satisfy recovery of a
judgment under the following circumstances:
1. The court may order a person from whom recovery is due to forfeit property which
constitutes or was derived directly or indirectly from gross proceeds traceable to the
violation which forms the basis for the recovery.
2. If the attorney general shows that the property was transferred to a third party to
avoid paying of recovery, or in an attempt to protect the property from forfeiture, the
court may order the third party to forfeit the transferred property.
Proposed law requires that, prior to a forfeiture of property, a contradictory hearing shall be
held during which the attorney general shall prove by clear and convincing evidence that the
property in question is subject to forfeiture. Further provides that if the property is
transferred to another person within six months prior to the occurrence or after the
occurrence of the violation for which recovery is due or within six months prior to or after
the institution of a criminal, civil, or departmental investigation or proceeding, it shall be
prima facie evidence that the transfer was intended to avoid paying recovery or was an
attempt to protect the property from forfeiture.
Proposed law provides a health care provider or other person from whom recovery is due
shall have an affirmative duty to fully disclose all property and liabilities and all transfers
of property which meet the criteria of proposed law.
Proposed law terminates on August 1, 2014.
Effective August 1, 2012.
(Adds R.S.22:1923(3) and 1931 through 1931.13)