House Bill 246 Summary

• Establishes civil liability for knowingly presenting false or fraudulent claims to government entities, with penalties of $6,000-$12,000 plus treble damages (three times actual damages), or double damages if the violator fully cooperates with authorities within 30 days.

• Authorizes the Attorney General and local government attorneys to investigate and bring civil actions for false claims violations, and allows private citizens to file qui tam (whistleblower) actions on behalf of the state or local governments.

• Provides qui tam plaintiffs with 15-30% of recovered proceeds depending on whether the government intervenes, and allows the Attorney General to convert private actions into government enforcement actions or settle cases notwithstanding plaintiff objections.

• Applies false claims provisions to tax law violations only if the defendant's net income or sales equal or exceed $1,000,000 and damages exceed $350,000, requiring Attorney General consultation with the Commissioner of Revenue.

• Brings forward existing whistleblower protection statutes (sections 25-9-171 through 25-9-177) prohibiting retaliation against employees who report improper governmental action and providing remedies including back pay, reinstatement, injunctive relief, compensatory damages, and attorney's fees.