HB 5430 - False Claims Act Summary

• Establishes the "False Claims Act" to provide civil remedies against persons who present false or fraudulent claims to obtain money, property, or services from Michigan state or local governments.

• Imposes civil penalties of $6,000-$12,000 plus three times actual damages for violations including presenting false claims, making false records material to false claims, conspiring to commit violations, or concealing obligations to pay government entities.

• Authorizes the Attorney General and local governments to investigate and bring civil actions for false claims, and allows private citizens ("qui tam plaintiffs") to sue on behalf of the state or local government and receive 15-30% of recovered proceeds depending on government participation.

• Protects employees, contractors, and agents from retaliation, demotion, suspension, or discrimination for lawfully disclosing information about false claims or participating in qui tam actions.

• Establishes a 10-year statute of limitations for actions, requires proof by preponderance of evidence, and permits the Attorney General to promulgate implementing rules.