Public Act 097-0978
 
HB4190 EnrolledLRB097 15181 JDS 60281 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois False Claims Act is amended by
changing Section 4 as follows:
 
    (740 ILCS 175/4)  (from Ch. 127, par. 4104)
    Sec. 4. Civil actions for false claims.
    (a) Responsibilities of the Attorney General and the
Department of State Police. The Attorney General or the
Department of State Police shall diligently investigate a civil
violation under Section 3. If the Attorney General finds that a
person violated or is violating Section 3, the Attorney General
may bring a civil action under this Section against the person.
    The State shall receive an amount for reasonable expenses
that the court finds to have been necessarily incurred by the
Attorney General, including reasonable attorneys' fees and
costs. All such expenses, fees, and costs shall be awarded
against the defendant. The court may award amounts from the
proceeds of an action or settlement that it considers
appropriate to any governmental entity or program that has been
adversely affected by a defendant. The Attorney General, if
necessary, shall direct the State Treasurer to make a
disbursement of funds as provided in court orders or settlement
agreements.
    (b) Actions by private persons.
        (1) A person may bring a civil action for a violation
    of Section 3 for the person and for the State. The action
    shall be brought in the name of the State. The action may
    be dismissed only if the court and the Attorney General
    give written consent to the dismissal and their reasons for
    consenting.
        (2) A copy of the complaint and written disclosure of
    substantially all material evidence and information the
    person possesses shall be served on the State. The
    complaint shall be filed in camera, shall remain under seal
    for at least 60 days, and shall not be served on the
    defendant until the court so orders. The State may elect to
    intervene and proceed with the action within 60 days after
    it receives both the complaint and the material evidence
    and information.
        (3) The State may, for good cause shown, move the court
    for extensions of the time during which the complaint
    remains under seal under paragraph (2). Any such motions
    may be supported by affidavits or other submissions in
    camera. The defendant shall not be required to respond to
    any complaint filed under this Section until 20 days after
    the complaint is unsealed and served upon the defendant.
        (4) Before the expiration of the 60-day period or any
    extensions obtained under paragraph (3), the State shall:
            (A) proceed with the action, in which case the
        action shall be conducted by the State; or
            (B) notify the court that it declines to take over
        the action, in which case the person bringing the
        action shall have the right to conduct the action.
        (5) When a person brings an action under this
    subsection (b), no person other than the State may
    intervene or bring a related action based on the facts
    underlying the pending action.
    (c) Rights of the parties to Qui Tam actions.
        (1) If the State proceeds with the action, it shall
    have the primary responsibility for prosecuting the
    action, and shall not be bound by an act of the person
    bringing the action. Such person shall have the right to
    continue as a party to the action, subject to the
    limitations set forth in paragraph (2).
        (2)(A) The State may dismiss the action
    notwithstanding the objections of the person initiating
    the action if the person has been notified by the State of
    the filing of the motion and the court has provided the
    person with an opportunity for a hearing on the motion.
        (B) The State may settle the action with the defendant
    notwithstanding the objections of the person initiating
    the action if the court determines, after a hearing, that
    the proposed settlement is fair, adequate, and reasonable
    under all the circumstances. Upon a showing of good cause,
    such hearing may be held in camera.
        (C) Upon a showing by the State that unrestricted
    participation during the course of the litigation by the
    person initiating the action would interfere with or unduly
    delay the State's prosecution of the case, or would be
    repetitious, irrelevant, or for purposes of harassment,
    the court may, in its discretion, impose limitations on the
    person's participation, such as:
            (i) limiting the number of witnesses the person may
        call:
            (ii) limiting the length of the testimony of such
        witnesses;
            (iii) limiting the person's cross-examination of
        witnesses; or
            (iv) otherwise limiting the participation by the
        person in the litigation.
        (D) Upon a showing by the defendant that unrestricted
    participation during the course of the litigation by the
    person initiating the action would be for purposes of
    harassment or would cause the defendant undue burden or
    unnecessary expense, the court may limit the participation
    by the person in the litigation.
        (3) If the State elects not to proceed with the action,
    the person who initiated the action shall have the right to
    conduct the action. If the State so requests, it shall be
    served with copies of all pleadings filed in the action and
    shall be supplied with copies of all deposition transcripts
    (at the State's expense). When a person proceeds with the
    action, the court, without limiting the status and rights
    of the person initiating the action, may nevertheless
    permit the State to intervene at a later date upon a
    showing of good cause.
        (4) Whether or not the State proceeds with the action,
    upon a showing by the State that certain actions of
    discovery by the person initiating the action would
    interfere with the State's investigation or prosecution of
    a criminal or civil matter arising out of the same facts,
    the court may stay such discovery for a period of not more
    than 60 days. Such a showing shall be conducted in camera.
    The court may extend the 60-day period upon a further
    showing in camera that the State has pursued the criminal
    or civil investigation or proceedings with reasonable
    diligence and any proposed discovery in the civil action
    will interfere with the ongoing criminal or civil
    investigation or proceedings.
        (5) Notwithstanding subsection (b), the State may
    elect to pursue its claim through any alternate remedy
    available to the State, including any administrative
    proceeding to determine a civil money penalty. If any such
    alternate remedy is pursued in another proceeding, the
    person initiating the action shall have the same rights in
    such proceeding as such person would have had if the action
    had continued under this Section. Any finding of fact or
    conclusion of law made in such other proceeding that has
    become final shall be conclusive on all parties to an
    action under this Section. For purposes of the preceding
    sentence, a finding or conclusion is final if it has been
    finally determined on appeal to the appropriate court, if
    all time for filing such an appeal with respect to the
    finding or conclusion has expired, or if the finding or
    conclusion is not subject to judicial review.
    (d) Award to Qui Tam plaintiff.
        (1) If the State proceeds with an action brought by a
    person under subsection (b), such person shall, subject to
    the second sentence of this paragraph, receive at least 15%
    but not more than 25% of the proceeds of the action or
    settlement of the claim, depending upon the extent to which
    the person substantially contributed to the prosecution of
    the action. Where the action is one which the court finds
    to be based primarily on disclosures of specific
    information (other than information provided by the person
    bringing the action) relating to allegations or
    transactions in a criminal, civil, or administrative
    hearing, in a legislative, administrative, or Auditor
    General's report, hearing, audit, or investigation, or
    from the news media, the court may award such sums as it
    considers appropriate, but in no case more than 10% of the
    proceeds, taking into account the significance of the
    information and the role of the person bringing the action
    in advancing the case to litigation. Any payment to a
    person under the first or second sentence of this paragraph
    (1) shall be made from the proceeds. Any such person shall
    also receive an amount for reasonable expenses which the
    court finds to have been necessarily incurred, plus
    reasonable attorneys' fees and costs. The State shall also
    receive an amount for reasonable expenses which the court
    finds to have been necessarily incurred by the Attorney
    General, including reasonable attorneys' fees and costs.
    All such expenses, fees, and costs shall be awarded against
    the defendant. The court may award amounts from the
    proceeds of an action or settlement that it considers
    appropriate to any governmental entity or program that has
    been adversely affected by a defendant. The Attorney
    General, if necessary, shall direct the State Treasurer to
    make a disbursement of funds as provided in court orders or
    settlement agreements.
        (2) If the State does not proceed with an action under
    this Section, the person bringing the action or settling
    the claim shall receive an amount which the court decides
    is reasonable for collecting the civil penalty and damages.
    The amount shall be not less than 25% and not more than 30%
    of the proceeds of the action or settlement and shall be
    paid out of such proceeds. Such person shall also receive
    an amount for reasonable expenses which the court finds to
    have been necessarily incurred, plus reasonable attorneys'
    fees and costs. All such expenses, fees, and costs shall be
    awarded against the defendant. The court may award amounts
    from the proceeds of an action or settlement that it
    considers appropriate to any governmental entity or
    program that has been adversely affected by a defendant.
    The Attorney General, if necessary, shall direct the State
    Treasurer to make a disbursement of funds as provided in
    court orders or settlement agreements.
        (3) Whether or not the State proceeds with the action,
    if the court finds that the action was brought by a person
    who planned and initiated the violation of Section 3 upon
    which the action was brought, then the court may, to the
    extent the court considers appropriate, reduce the share of
    the proceeds of the action which the person would otherwise
    receive under paragraph (1) or (2) of this subsection (d),
    taking into account the role of that person in advancing
    the case to litigation and any relevant circumstances
    pertaining to the violation. If the person bringing the
    action is convicted of criminal conduct arising from his or
    her role in the violation of Section 3, that person shall
    be dismissed from the civil action and shall not receive
    any share of the proceeds of the action. Such dismissal
    shall not prejudice the right of the State to continue the
    action, represented by the Attorney General.
        (4) If the State does not proceed with the action and
    the person bringing the action conducts the action, the
    court may award to the defendant its reasonable attorneys'
    fees and expenses if the defendant prevails in the action
    and the court finds that the claim of the person bringing
    the action was clearly frivolous, clearly vexatious, or
    brought primarily for purposes of harassment.
    (e) Certain actions barred.
        (1) No court shall have jurisdiction over an action
    brought by a former or present member of the Guard under
    subsection (b) of this Section against a member of the
    Guard arising out of such person's service in the Guard.
        (2)(A) No court shall have jurisdiction over an action
    brought under subsection (b) against a member of the
    General Assembly, a member of the judiciary, or an exempt
    official if the action is based on evidence or information
    known to the State when the action was brought.
        (B) For purposes of this paragraph (2), "exempt
    official" means any of the following officials in State
    service: directors of departments established under the
    Civil Administrative Code of Illinois, the Adjutant
    General, the Assistant Adjutant General, the Director of
    the State Emergency Services and Disaster Agency, members
    of the boards and commissions, and all other positions
    appointed by the Governor by and with the consent of the
    Senate.
        (3) In no event may a person bring an action under
    subsection (b) which is based upon allegations or
    transactions which are the subject of a civil suit or an
    administrative civil money penalty proceeding in which the
    State is already a party.
        (4)(A) The court shall dismiss an action or claim under
    this Section, unless opposed by the State, if substantially
    the same allegations or transactions as alleged in the
    action or claim were publicly disclosed: No court shall
    have jurisdiction over an action under this Section based
    upon the public disclosure of allegations or transactions
            (i) in a criminal, civil, or administrative
        hearing in which the State or its agent is a party; ,
            (ii) in a State legislative, State administrative,
        or Auditor General, or other State General's report,
        hearing, audit, or investigation; , or
            (iii) from the news media,
    unless the action is brought by the Attorney General or the
    person bringing the action is an original source of the
    information.
        (B) For purposes of this paragraph (4), "original
    source" means an individual who either (i) prior to a
    public disclosure under subparagraph (A) of this paragraph
    (4), has voluntarily disclosed to the State the information
    on which allegations or transactions in a claim are based,
    or (ii) has knowledge that is independent of and materially
    adds to the publicly disclosed allegations or
    transactions, has direct and independent knowledge of the
    information on which the allegations are based and who has
    voluntarily provided the information to the State before
    filing an action under this Section which is based on the
    information.
    (f) State not liable for certain expenses. The State is not
liable for expenses which a person incurs in bringing an action
under this Section.
    (g) Relief from retaliatory actions.
        (1) In general, any employee, contractor, or agent
    shall be is entitled to all relief necessary to make that
    employee, contractor, or agent whole, if that employee,
    contractor, or agent is discharged, demoted, suspended,
    threatened, harassed, or in any other manner discriminated
    against in the terms and conditions of employment because
    of lawful acts done by the employee, contractor, or agent
    on behalf of the employee, contractor, or agent, or
    associated others in furtherance of an action under this
    Section or other efforts to stop one or more violations of
    this Act.
        (2) Relief under paragraph (1) shall include
    reinstatement with the same seniority status that the
    employee, contractor, or agent would have had but for the
    discrimination, 2 times the amount of back pay, interest on
    the back pay, and compensation for any special damages
    sustained as a result of the discrimination, including
    litigation costs and reasonable attorneys' fees. An action
    under this subsection (g) may be brought in the appropriate
    circuit court for the relief provided in this subsection
    (g).
        (3) A civil action under this subsection may not be
    brought more than 3 years after the date when the
    retaliation occurred.
(Source: P.A. 96-1304, eff. 7-27-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/17/2012