HB 22-1119: Colorado False Claims Act

• Establishes the Colorado False Claims Act allowing the Attorney General and private citizens to bring civil actions against persons who submit false claims for payment to Colorado state or political subdivisions.

• Imposes civil penalties of $11,800-$23,600 per violation plus three times the damages sustained by the state; penalties are adjusted annually for inflation beginning July 1, 2023.

• Allows private individuals to bring lawsuits on behalf of the state under seal for 63 days, with the state able to intervene and take over prosecution; private parties receive 15-30% of recovered proceeds if the state intervenes, or 25-30% if the state declines.

• Provides whistleblower protections and anti-retaliation provisions, including reinstatement with back pay for employees discharged for reporting false claims or assisting investigations.

• Creates the False Claims Recovery Cash Fund to receive all state proceeds from false claims actions, with funds used for enforcement costs and returned to original funding sources or political subdivisions affected by the fraud.