HB594 Summary

• Establishes the Alabama False Claims Act to provide a civil remedy for fraud against the state, with violators liable for treble damages (three times actual damages), civil penalties of $5,500-$11,000 per false claim, and attorney's fees.

• Authorizes the Attorney General to investigate and prosecute false claims violations, and allows private citizens as "qui tam plaintiffs" to bring civil actions on behalf of the state with sealed complaint procedures and 60-day review periods.

• Qui tam plaintiffs receive 15-25% of recovered proceeds if the state prosecutes, or 25-30% if they prosecute independently; awards may be reduced to 10% or eliminated if based primarily on public disclosures or if the plaintiff initiated the violation.

• Prohibits employers from retaliating against employees who disclose information about false claims to government agencies or participate in false claims actions, with violators liable for reinstatement, double back pay, damages, and attorney's fees.

• Establishes a three-year statute of limitations from discovery of violations (or six years from commission) for civil actions, and requires proof by preponderance of evidence; criminal convictions for fraud estop defendants from denying essential elements in related civil actions.