Texas 2015 - 84th Regular

Texas House Bill HB2062 Compare Versions

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1	1	84R10612 SCL-D
2	2	By: Raymond H.B. No. 2062
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to false claims against the state and actions by the state
8	8	and private persons to prosecute those claims; providing a civil
9	9	penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle C, Title 10, Government Code, is
12	12	amended by adding Chapter 2116 to read as follows:
13	13	CHAPTER 2116. FALSE CLAIMS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 2116.001. DEFINITIONS. In this chapter:
16	16	(1) "Claim" includes any request or demand, under a
17	17	contract or otherwise, for money or property that is made to a
18	18	contractor, grantee, or other recipient if this state:
19	19	(A) provides any portion of the money or property
20	20	that is requested or demanded; or
21	21	(B) will reimburse the contractor, grantee, or
22	22	other recipient for any portion of the money or property that is
23	23	requested or demanded.
24	24	(2) "Documentary material" means the original or a
25	25	copy of any book, record, report, memorandum, paper, communication,
26	26	tabulation, chart, or other document, or data compilations stored
27	27	in or accessible through computer or other information retrieval
28	28	systems, together with instructions and all other materials
29	29	necessary to use or interpret the data compilations, and any
30	30	product of discovery.
31	31	(3) "Product of discovery" means:
32	32	(A) the original or a copy of a deposition,
33	33	interrogatory, document, thing, result of inspection of land or
34	34	other property, examination, or admission, that is obtained by any
35	35	method of discovery in a judicial or administrative proceeding of
36	36	an adversarial nature;
37	37	(B) a digest, analysis, selection, compilation,
38	38	or derivation of any item listed in Paragraph (A); and
39	39	(C) an index, instruction, or other aid or means
40	40	of access to any item listed in Paragraph (A).
41	41	(4) "Qui tam action" means an action brought by a
42	42	private person against a person for the commission of a false claim
43	43	under Section 2116.101.
44	44	(5) "Qui tam plaintiff" means the person bringing a
45	45	qui tam action.
46	46	(6) "State" means state government as defined by
47	47	Section 101.001, Civil Practice and Remedies Code.
48	48	Sec. 2116.002. WHEN A PERSON ACTS KNOWINGLY. In this
49	49	chapter, a person acts "knowingly" with respect to information if
50	50	the person:
51	51	(1) has knowledge of the information;
52	52	(2) acts with conscious indifference to the truth or
53	53	falsity of the information; or
54	54	(3) acts in reckless disregard of the truth or falsity
55	55	of the information.
56	56	Sec. 2116.003. CERTAIN ACTIONS BARRED. (a) A person may
57	57	not bring a qui tam action based on allegations or transactions that
58	58	are the subject of a civil suit that has already been filed or an
59	59	administrative penalty proceeding in which the state is already a
60	60	party.
61	61	(b) A person may not bring a qui tam action against a member
62	62	of the legislature, a member of the judiciary, or a senior official
63	63	of the executive branch if the action is based on evidence or
64	64	information known to the state when the action was brought.
65	65	(c) Except as provided by Subsection (d), on motion of the
66	66	attorney general, a court may, after considering all the equities,
67	67	dismiss a qui tam plaintiff if the elements of the actionable false
68	68	claims alleged in the qui tam complaint have been publicly
69	69	disclosed specifically in the news media or in a publicly
70	70	disseminated governmental report at the time the complaint is
71	71	filed.
72	72	(d) A court may not dismiss a qui tam plaintiff under
73	73	Subsection (c) if the qui tam plaintiff has knowledge of the
74	74	elements of the actionable false claims alleged, independent of the
75	75	disclosure in the news media or in a publicly disseminated
76	76	governmental report, and has voluntarily provided the information
77	77	to the attorney general before filing the qui tam action.
78	78	Sec. 2116.004. CHAPTER NOT APPLICABLE TO MEDICAID FRAUD.
79	79	This chapter does not apply to an unlawful act described by Section
80	80	36.002, Human Resources Code, relating to Medicaid fraud.
81	81	SUBCHAPTER B. INVESTIGATION BY ATTORNEY GENERAL
82	82	Sec. 2116.051. RESPONSIBILITY OF ATTORNEY GENERAL. The
83	83	attorney general shall diligently investigate the commission of a
84	84	false claim under Section 2116.101 and may bring a civil action
85	85	against the person committing the false claim.
86	86	Sec. 2116.052. INVESTIGATION. (a) The attorney general
87	87	may take action under Subsection (b) if the attorney general has
88	88	reason to believe that:
89	89	(1) a person has information or custody or control of
90	90	documentary material relevant to the subject matter of an
91	91	investigation of an alleged false claim;
92	92	(2) a person is committing, has committed, or is about
93	93	to commit a false claim; or
94	94	(3) it is in the public interest to conduct an
95	95	investigation to ascertain whether a person is committing, has
96	96	committed, or is about to commit a false claim.
97	97	(b) In investigating a false claim, the attorney general
98	98	may:
99	99	(1) require the person to file on a prescribed form a
100	100	statement in writing, under oath or affirmation, as to all the facts
101	101	and circumstances concerning the alleged false claim and other
102	102	information considered necessary by the attorney general;
103	103	(2) examine under oath a person in connection with the
104	104	alleged false claim; and
105	105	(3) execute in writing and serve on the person a civil
106	106	investigative demand requiring the person to produce the
107	107	documentary material and permit inspection and copying of the
108	108	material under Section 2116.053.
109	109	(c) The office of the attorney general may not release or
110	110	disclose information that is obtained under Subsection (b)(1) or
111	111	(2) or any documentary material or other record derived from the
112	112	information except:
113	113	(1) by court order for good cause shown;
114	114	(2) with the consent of the person who provided the
115	115	information;
116	116	(3) to an employee of the attorney general;
117	117	(4) to an agency of this state, the United States, or
118	118	another state;
119	119	(5) to any attorney representing the state under
120	120	Section 2116.055 or in a civil action brought under Subchapter D;
121	121	(6) to a political subdivision of this state; or
122	122	(7) to a person authorized by the attorney general to
123	123	receive the information.
124	124	(d) The attorney general may use documentary material
125	125	derived from information obtained under Subsection (b)(1) or (2),
126	126	or copies of that material, as the attorney general determines
127	127	necessary in the enforcement of this chapter, including
128	128	presentation before a court.
129	129	(e) If a person fails to file a statement as required by
130	130	Subsection (b)(1) or fails to submit to an examination as required
131	131	by Subsection (b)(2), the attorney general may file in a district
132	132	court of Travis County a petition for an order to compel the person
133	133	to file the statement or submit to the examination within a period
134	134	stated by court order. Failure to comply with an order entered
135	135	under this subsection is punishable as contempt.
136	136	(f) An order issued by a district court under this section
137	137	is subject to appeal to the supreme court.
138	138	Sec. 2116.053. CIVIL INVESTIGATIVE DEMAND. (a) An
139	139	investigative demand must:
140	140	(1) state the rule or statute under which the alleged
141	141	unlawful act is being investigated and the general subject matter
142	142	of the investigation;
143	143	(2) describe the class or classes of documentary
144	144	material to be produced with reasonable specificity to fairly
145	145	indicate the documentary material demanded;
146	146	(3) prescribe a return date within which the
147	147	documentary material is to be produced; and
148	148	(4) identify an authorized employee of the attorney
149	149	general to whom the documentary material is to be made available for
150	150	inspection and copying.
151	151	(b) A civil investigative demand may require disclosure of
152	152	any documentary material that is discoverable under the Texas Rules
153	153	of Civil Procedure.
154	154	(c) Service of an investigative demand may be made by:
155	155	(1) delivering an executed copy of the demand to the
156	156	person to be served or to a partner, an officer, or an agent
157	157	authorized by appointment or by law to receive service of process on
158	158	behalf of that person;
159	159	(2) delivering an executed copy of the demand to the
160	160	principal place of business in this state of the person to be
161	161	served; or
162	162	(3) mailing by registered or certified mail an
163	163	executed copy of the demand addressed to the person to be served at
164	164	the person's principal place of business in this state or, if the
165	165	person has no place of business in this state, to a person's
166	166	principal office or place of business.
167	167	(d) Documentary material demanded under this section shall
168	168	be produced for inspection and copying during normal business hours
169	169	at the office of the attorney general or as agreed by the person
170	170	served and the attorney general.
171	171	(e) The office of the attorney general may not produce for
172	172	inspection or copying or otherwise disclose the contents of
173	173	documentary material obtained under this section except:
174	174	(1) by court order for good cause shown;
175	175	(2) with the consent of the person who produced the
176	176	information;
177	177	(3) to an employee of the attorney general;
178	178	(4) to an agency of this state, the United States, or
179	179	another state;
180	180	(5) to any attorney representing the state under
181	181	Section 2116.055 or in a civil action brought under Subchapter D;
182	182	(6) to a political subdivision of this state; or
183	183	(7) to a person authorized by the attorney general to
184	184	receive the information.
185	185	(f) The attorney general shall prescribe reasonable terms
186	186	and conditions allowing the documentary material to be available
187	187	for inspection and copying by the person who produced the material
188	188	or by an authorized representative of that person. The attorney
189	189	general may use the documentary material or copies of it as the
190	190	attorney general determines necessary in the enforcement of this
191	191	chapter, including presentation before a court.
192	192	(g) A person may file a petition, stating good cause, to
193	193	extend the return date for the demand or to modify or set aside the
194	194	demand. A petition under this section shall be filed in a district
195	195	court of Travis County and must be filed before the earlier of:
196	196	(1) the return date specified in the demand; or
197	197	(2) the 20th day after the date the demand is served.
198	198	(h) Except as provided by court order, a person on whom a
199	199	demand has been served under this section shall comply with the
200	200	terms of an investigative demand.
201	201	(i) A person who has committed a false claim has submitted
202	202	to the jurisdiction of this state, and personal service of an
203	203	investigative demand under this section may be made on the person
204	204	outside of this state.
205	205	(j) This section does not limit the authority of the
206	206	attorney general to conduct investigations or to access a person's
207	207	documentary materials or other information under another state or
208	208	federal law, the Texas Rules of Civil Procedure, or the Federal
209	209	Rules of Civil Procedure.
210	210	(k) If a person fails to comply with an investigative
211	211	demand, or if copying and reproduction of the documentary material
212	212	demanded cannot be satisfactorily accomplished and the person
213	213	refuses to surrender the documentary material, the attorney general
214	214	may file in a district court of Travis County a petition for an
215	215	order to enforce the investigative demand.
216	216	(l) If a petition is filed under Subsection (k), the court
217	217	may determine the matter presented and may enter an order to
218	218	implement this section.
219	219	(m) Failure to comply with a final order entered under
220	220	Subsection (l) is punishable by contempt.
221	221	(n) A final order issued by a district court under
222	222	Subsection (l) is subject to appeal to the supreme court.
223	223	Sec. 2116.054. INJUNCTIVE RELIEF. (a) If the attorney
224	224	general has reason to believe that a person is committing, has
225	225	committed, or is about to commit a false claim, the attorney general
226	226	may institute an action for an appropriate order to restrain the
227	227	person from committing or continuing the false claim.
228	228	(b) An action under this section shall be brought in a
229	229	district court of Travis County, or in a county in which any part of
230	230	the false claim occurred, is occurring, or is about to occur.
231	231	Sec. 2116.055. ATTORNEY GENERAL AS RELATOR IN FEDERAL
232	232	ACTION. To the extent permitted by 31 U.S.C. Sections 3729-3733,
233	233	the attorney general may bring an action as relator under 31 U.S.C.
234	234	Section 3730 with respect to an act for which a person may be held
235	235	liable under 31 U.S.C. Section 3729. The attorney general may
236	236	contract with a private attorney to represent the state under this
237	237	section.
238	238	Sec. 2116.056. STANDARD OF PROOF. The standard of proof for
239	239	all elements of a cause of action under this chapter is
240	240	preponderance of the evidence.
241	241	Sec. 2116.057. CHAPTER 41, CIVIL PRACTICE AND REMEDIES
242	242	CODE, INAPPLICABLE TO ACTION UNDER THIS CHAPTER. Chapter 41, Civil
243	243	Practice and Remedies Code, is not applicable to a cause of action
244	244	under this chapter.
245	245	SUBCHAPTER C. FALSE CLAIMS
246	246	Sec. 2116.101. FALSE CLAIMS. (a) A person commits a false
247	247	claim if the person:
248	248	(1) knowingly presents, or causes to be presented, to
249	249	an officer, employee, or agent of this state, or to any contractor,
250	250	grantee, or other recipient of state funds, a false or fraudulent
251	251	claim for payment or approval;
252	252	(2) knowingly makes, uses, or causes to be made or used
253	253	a false record or statement to get a false or fraudulent claim paid
254	254	or approved;
255	255	(3) conspires to defraud this state by getting a false
256	256	or fraudulent claim allowed or paid, or conspires to defraud this
257	257	state by knowingly making, using, or causing to be made or used, a
258	258	false record or statement to conceal, avoid, or decrease an
259	259	obligation to pay or transmit money or property to this state;
260	260	(4) has possession, custody, or control of public
261	261	property or money used or to be used by this state and knowingly
262	262	delivers or causes to be delivered less property than the amount for
263	263	which the person receives a certificate or receipt;
264	264	(5) is authorized to make or deliver a document
265	265	certifying receipt of property used or to be used by this state and
266	266	knowingly makes or delivers a receipt that falsely represents the
267	267	property used or to be used;
268	268	(6) knowingly buys, or receives as a pledge of an
269	269	obligation or debt, public property from any person who lawfully
270	270	may not sell or pledge the property;
271	271	(7) knowingly makes, uses, or causes to be made or used
272	272	a false record or statement to conceal, avoid, or decrease an
273	273	obligation to pay or transmit money or property to this state;
274	274	(8) knowingly conceals, avoids, or decreases an
275	275	obligation to pay or transmit money or property to this state; or
276	276	(9) is a beneficiary of an inadvertent submission of a
277	277	false claim to any employee, officer, or agent of this state, or to
278	278	any contractor, grantee, or other recipient of state funds,
279	279	subsequently discovers the falsity of the claim, and fails to
280	280	disclose the false claim to this state within a reasonable time
281	281	after discovery of the false claim.
282	282	(b) Proof of the person's specific intent to commit a false
283	283	claim under Subsection (a) is not required in a civil or
284	284	administrative proceeding to show that a person acted "knowingly"
285	285	with respect to information under this chapter.
286	286	Sec. 2116.102. CIVIL REMEDIES. (a) A person who commits a
287	287	false claim under Section 2116.101 is liable to this state for:
288	288	(1) a civil penalty in an amount not less than $5,000
289	289	and not more than $15,000 for each false claim committed by the
290	290	person;
291	291	(2) except as provided by Subsection (b), three times
292	292	the amount of damages that this state sustains directly or
293	293	indirectly as a result of the act of the person; and
294	294	(3) fees, expenses, and costs reasonably incurred in
295	295	obtaining relief or civil remedies or conducting investigations
296	296	under this chapter, including court costs, reasonable attorney's
297	297	fees, witness fees, and deposition fees.
298	298	(b) A court may assess not less than two times the amount of
299	299	damages under Subsection (a)(2) if the court finds:
300	300	(1) that the person committing a false claim furnished
301	301	the attorney general with all information known to the person about
302	302	the false claim on or before the 30th day after the date the person
303	303	first obtained the information;
304	304	(2) that the person committing a false claim fully
305	305	cooperated with any investigation of the false claim; and
306	306	(3) at the time the person furnished information about
307	307	the false claim, a criminal prosecution, civil action, or
308	308	administrative action had not commenced in relation to the false
309	309	claim and the person did not have actual knowledge of the existence
310	310	of an investigation into the false claim.
311	311	SUBCHAPTER D. ACTIONS BY PRIVATE PERSONS
312	312	Sec. 2116.151. ACTIONS BY PRIVATE PERSON AUTHORIZED;
313	313	ALTERNATIVE REMEDY SOUGHT BY STATE. (a) Subject to Section
314	314	2116.201, a private person may bring a civil action against a person
315	315	committing a false claim under Section 2116.101.
316	316	(b) The action is a qui tam action on behalf of both the
317	317	person and the state.
318	318	(c) The qui tam action must be brought in the name of this
319	319	state.
320	320	(d) No person other than the attorney general may intervene
321	321	or bring a related action based on the facts underlying a pending
322	322	action under this subchapter.
323	323	Sec. 2116.152. INITIATION OF ACTION. (a) A qui tam
324	324	plaintiff shall serve a copy of the petition and a written
325	325	disclosure of substantially all material evidence and information
326	326	the person possesses on the attorney general in compliance with the
327	327	Texas Rules of Civil Procedure.
328	328	(b) The petition shall be filed in camera and, except as
329	329	provided by Subsection (d) or (e), shall remain under seal until at
330	330	least the 180th day after the date the petition is filed or the date
331	331	on which the state elects to intervene, whichever is earlier. The
332	332	petition may not be served on the defendant until the court orders
333	333	service on the defendant.
334	334	(c) The state may elect to intervene and proceed with the
335	335	action not later than the 180th day after the date the attorney
336	336	general receives the petition and the material evidence and
337	337	information.
338	338	(d) At the time the state intervenes, the attorney general
339	339	may file a motion with the court requesting that the petition remain
340	340	under seal for an extended period.
341	341	(e) The state may, for good cause shown, move the court to
342	342	extend the 180-day deadline under Subsection (b) or (c). A motion
343	343	under this subsection may be supported by affidavits or other
344	344	submissions in camera.
345	345	(f) An action under this subchapter may be dismissed before
346	346	the end of the period during which the petition remains under seal
347	347	only if the court and the attorney general consent in writing to the
348	348	dismissal and state their reasons for consenting.
349	349	Sec. 2116.153. ANSWER BY DEFENDANT. A defendant is not
350	350	required to file in accordance with the Texas Rules of Civil
351	351	Procedure an answer to a petition filed under this subchapter until
352	352	the petition is unsealed and served on the defendant.
353	353	Sec. 2116.154. CHOICE OF STATE. (a) Not later than the
354	354	last day of the period described by Section 2116.152(c) or an
355	355	extension of that period as provided by Section 2116.152(e), the
356	356	state shall:
357	357	(1) proceed with the action; or
358	358	(2) notify the court that the state declines to take
359	359	over the action.
360	360	(b) If the state declines to take over the action, the qui
361	361	tam plaintiff is entitled to conduct the action.
362	362	Sec. 2116.155. ACTION CONDUCTED BY STATE. (a) This section
363	363	applies to a qui tam action the state takes over under Section
364	364	2116.154(a)(1).
365	365	(b) The state has the primary responsibility for
366	366	prosecuting the action and is not bound by an act of the qui tam
367	367	plaintiff.
368	368	(c) Subject to this section, the qui tam plaintiff is
369	369	entitled to continue as a party to the action.
370	370	(d) Notwithstanding the objection of the qui tam plaintiff,
371	371	the state may dismiss the action for good cause if:
372	372	(1) the state notifies the qui tam plaintiff that a
373	373	motion to dismiss has been filed; and
374	374	(2) the court provides the qui tam plaintiff with an
375	375	opportunity for a hearing on the motion.
376	376	(e) Notwithstanding the objection of the qui tam plaintiff,
377	377	the state may settle the action if the court determines, after a
378	378	hearing, that the proposed settlement is fair, adequate, and
379	379	reasonable under all the circumstances. On a showing of good cause,
380	380	the court may hold the hearing in camera.
381	381	(f) On a showing by the state that unrestricted
382	382	participation in the litigation of the action by the qui tam
383	383	plaintiff would interfere with or unduly delay the state's
384	384	prosecution of the case or would be repetitious, irrelevant, or for
385	385	purposes of harassment, the court may impose limitations on the
386	386	person's participation, including:
387	387	(1) limiting the number of witnesses the qui tam
388	388	plaintiff may call;
389	389	(2) limiting the length of the testimony of witnesses
390	390	called by the qui tam plaintiff;
391	391	(3) limiting the qui tam plaintiff's cross-examination
392	392	of witnesses; or
393	393	(4) otherwise limiting the participation by the qui
394	394	tam plaintiff in the litigation.
395	395	(g) On a showing by the defendant that unrestricted
396	396	participation in the litigation of the action by the qui tam
397	397	plaintiff would be for purposes of harassment or would cause the
398	398	defendant undue burden or unnecessary expense, the court may limit
399	399	the participation by the qui tam plaintiff in the litigation.
400	400	Sec. 2116.156. ACTION CONDUCTED BY QUI TAM PLAINTIFF. (a)
401	401	This section applies to a qui tam action the state declines to take
402	402	over under Section 2116.154(a)(2).
403	403	(b) At the request of the state, the state shall be served
404	404	with copies of all pleadings filed in the action and shall be
405	405	provided with copies of all discovery requests and responses,
406	406	including documents produced and deposition transcripts.
407	407	(c) Without limiting the status and rights of the qui tam
408	408	plaintiff, the court may, on a showing of good cause and
409	409	notwithstanding the initial decision of the state to decline to
410	410	take over the action, permit the state to intervene at a later date.
411	411	Sec. 2116.157. STAY OF CERTAIN DISCOVERY. (a) On a
412	412	showing by the state that certain actions of discovery by the qui
413	413	tam plaintiff would interfere with the state's investigation or
414	414	prosecution of a criminal or civil matter arising out of the same
415	415	facts, the court may stay the discovery for a period not to exceed
416	416	60 days.
417	417	(b) The court shall hear a motion to stay discovery under
418	418	this section in camera.
419	419	(c) The court may extend the period prescribed by Subsection
420	420	(a) on a further showing in camera that the state has pursued the
421	421	criminal or civil investigation or proceedings with reasonable
422	422	diligence and that any proposed discovery in the civil action will
423	423	interfere with the ongoing criminal or civil investigation or
424	424	proceedings.
425	425	Sec. 2116.158. AWARD TO QUI TAM PLAINTIFF. (a) If the
426	426	state proceeds with an action under this subchapter, the person
427	427	bringing the action is entitled, except as provided by Subsection
428	428	(b), to receive an award of at least 15 percent, but not more than 25
429	429	percent, of the proceeds of the action, depending on the extent to
430	430	which the person substantially contributed to the prosecution of
431	431	the action.
432	432	(b) If the state declines to proceed with an action under
433	433	Section 2116.154(a)(2), the qui tam plaintiff is entitled, except
434	434	as provided by Subsection (c), to receive an award of at least 25
435	435	percent but not more than 30 percent of the proceeds of the action.
436	436	(c) If the court finds, on motion of the attorney general,
437	437	that the action is based primarily on disclosures of specific
438	438	information, other than information provided by the person bringing
439	439	the action, relating to allegations or transactions in a civil or
440	440	criminal hearing, in a legislative or administrative report,
441	441	hearing, audit, or investigation, or from the news media, the court
442	442	may award the amount the court considers appropriate but not more
443	443	than 10 percent of the proceeds of the action. The court shall
444	444	consider the significance of the information and the role of the
445	445	person bringing the action in advancing the case to litigation.
446	446	(d) A payment to a person under this section shall be made
447	447	from the proceeds of the action. A person receiving a payment under
448	448	this section is also entitled to receive from the defendant an
449	449	amount for reasonable expenses, reasonable attorney's fees, and
450	450	costs that the court finds to have been necessarily incurred. The
451	451	court's determination of expenses, fees, and costs to be awarded
452	452	under this subsection shall be made only after the defendant has
453	453	been found liable in the action or has settled the action.
454	454	(e) In this section, "proceeds of the action" means the
455	455	amount recovered by the state pursuant to a judgment or settlement
456	456	of the qui tam action or the resolution of an alternate remedy
457	457	pursued by the state under Section 2116.201. The term does not
458	458	include attorney's fees, costs, and expenses incurred in bringing
459	459	the action.
460	460	Sec. 2116.159. REDUCTION OF AWARD. (a) If the court finds
461	461	that the qui tam plaintiff planned and initiated the false claim
462	462	that is the basis of the qui tam action, the court may, to the extent
463	463	the court considers appropriate, reduce the share of the proceeds
464	464	of the action the person would otherwise receive under Section
465	465	2116.158, taking into account the qui tam plaintiff's role in
466	466	advancing the case to litigation and any relevant circumstances
467	467	pertaining to the violation.
468	468	(b) If the qui tam plaintiff is convicted of criminal
469	469	conduct arising from the person's role in the false claim, the court
470	470	shall dismiss the plaintiff from the civil action and the plaintiff
471	471	may not receive any share of the proceeds of the action. A
472	472	dismissal under this subsection does not prejudice the right of the
473	473	state to continue the qui tam action.
474	474	Sec. 2116.160. STATE NOT LIABLE FOR CERTAIN EXPENSES. The
475	475	state is not liable for expenses that a qui tam plaintiff incurs in
476	476	bringing an action under this subchapter.
477	477	Sec. 2116.161. RETALIATION BY EMPLOYER AGAINST PERSON
478	478	BRINGING SUIT PROHIBITED. (a) A person who is discharged, demoted,
479	479	suspended, threatened, harassed, or in any other manner
480	480	discriminated against in the terms of employment by the person's
481	481	employer because of a lawful act taken by the person in furtherance
482	482	of a qui tam action, including investigation for, initiation of,
483	483	testimony for, or assistance in a qui tam action filed or to be
484	484	filed, is entitled to all relief necessary to make the person whole,
485	485	including:
486	486	(1) reinstatement with the same seniority status the
487	487	person would have had but for the discrimination; and
488	488	(2) two times the amount of back pay, interest on the
489	489	back pay, and compensation for any special damages sustained as a
490	490	result of the discrimination, including litigation costs and
491	491	reasonable attorney's fees.
492	492	(b) A person may bring an action in the appropriate district
493	493	court for the relief provided in this section.
494	494	SUBCHAPTER E. ACTION BY STATE
495	495	Sec. 2116.201. STATE MAY PURSUE ALTERNATE REMEDY. (a)
496	496	After a qui tam action is filed, the state may elect to prosecute
497	497	the false claim that is the subject of the action through any
498	498	alternate remedy available to the state, including any
499	499	administrative proceeding to determine an administrative penalty.
500	500	(b) The qui tam plaintiff has the same rights in the other
501	501	proceeding as the person would have had if the action had continued
502	502	in the original forum, including a monetary award as provided by
503	503	Subchapter D.
504	504	(c) A finding of fact or conclusion of law made in the other
505	505	proceeding that has become final is conclusive on all parties to the
506	506	qui tam action. For purposes of this subsection, a finding or
507	507	conclusion is final if:
508	508	(1) the finding or conclusion has been finally
509	509	determined on appeal to the appropriate court;
510	510	(2) no appeal has been filed with respect to the
511	511	finding or conclusion and all time for filing an appeal has expired;
512	512	or
513	513	(3) the finding or conclusion is not subject to
514	514	judicial review.
515	515	SECTION 2. Section 41.002(d), Civil Practice and Remedies
516	516	Code, is amended to read as follows:
517	517	(d) Notwithstanding any provision to the contrary, this
518	518	chapter does not apply to:
519	519	(1) Section 15.21, Business & Commerce Code (Texas
520	520	Free Enterprise and Antitrust Act of 1983);
521	521	(2) an action brought under the Deceptive Trade
522	522	Practices-Consumer Protection Act (Subchapter E, Chapter 17,
523	523	Business & Commerce Code) except as specifically provided in
524	524	Section 17.50 of that Act;
525	525	(3) an action brought under Chapter 36, Human
526	526	Resources Code; [or]
527	527	(4) an action brought under Chapter 21, Insurance
528	528	Code; or
529	529	(5) an action brought under Chapter 2116, Government
530	530	Code.
531	531	SECTION 3. (a) Except as provided by Subsection (b) of this
532	532	section, this Act applies only to a false claim as described by
533	533	Section 2116.101, Government Code, as added by this Act, that takes
534	534	place on or after the effective date of this Act. A false claim
535	535	takes place on or after the effective date of this Act only if all
536	536	elements of the false claim take place on or after the effective
537	537	date of this Act.
538	538	(b) This Act applies to acts occurring before the effective
539	539	date of this Act that would have constituted a false claim as
540	540	described by Section 2116.101, Government Code, as added by this
541	541	Act, if that section had been effective at the time of the acts, if:
542	542	(1) the acts were reported or made known to a state
543	543	agency within a reasonable period of time after the date of their
544	544	occurrence; and
545	545	(2) the acts are the subject of an ongoing
546	546	investigation by a state agency on or after the effective date of
547	547	this Act.
548	548	SECTION 4. This Act takes effect immediately if it receives
549	549	a vote of two-thirds of all the members elected to each house, as
550	550	provided by Section 39, Article III, Texas Constitution. If this
551	551	Act does not receive the vote necessary for immediate effect, this
552	552	Act takes effect September 1, 2015.