101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2139

 

Introduced , by Rep. Keith R. Wheeler

 

SYNOPSIS AS INTRODUCED:
 
705 ILCS 505/8  from Ch. 37, par. 439.8
740 ILCS 175/4  from Ch. 127, par. 4104
740 ILCS 175/4.5 new

    Amends the Illinois False Claims Act. Provides that no court has jurisdiction over a civil action relating to or involving a false claim regarding certain tax acts administered by the Department of Revenue unless the action is brought by the Attorney General. Provides that the Department of Revenue has the sole authority to bring an administrative action and that the Attorney General has the sole authority to bring a judicial action under the Act for a false claim, statement, or record pertaining to certain taxes administered by the Department of Revenue. Contains provisions concerning reporting, investigative, and enforcement procedures for allegations of false claims pertaining to certain taxes. Contains provisions governing the payment of rewards to persons who provide information that leads to recovery of funds under the new provisions. Provides that the appeal of a determination regarding an award may be appealed exclusively to the Court of Claims and must be filed within 30 days of the determination of the award. Makes other changes, including a corresponding change in the Court of Claims Act.


LRB101 04881 LNS 49890 b

 

 

A BILL FOR

 

HB2139LRB101 04881 LNS 49890 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Court of Claims Act is amended by changing
5Section 8 as follows:
 
6    (705 ILCS 505/8)   (from Ch. 37, par. 439.8)
7    Sec. 8. Court of Claims jurisdiction; deliberation
8periods. The court shall have exclusive jurisdiction to hear
9and determine the following matters:
10    (a) All claims against the State founded upon any law of
11the State of Illinois or upon any regulation adopted thereunder
12by an executive or administrative officer or agency; provided,
13however, the court shall not have jurisdiction (i) to hear or
14determine claims arising under the Workers' Compensation Act or
15the Workers' Occupational Diseases Act, or claims for expenses
16in civil litigation, or (ii) to review administrative decisions
17for which a statute provides that review shall be in the
18circuit or appellate court.
19    (b) All claims against the State founded upon any contract
20entered into with the State of Illinois.
21    (c) All claims against the State for time unjustly served
22in prisons of this State when the person imprisoned received a
23pardon from the governor stating that such pardon is issued on

 

 

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1the ground of innocence of the crime for which he or she was
2imprisoned or he or she received a certificate of innocence
3from the Circuit Court as provided in Section 2-702 of the Code
4of Civil Procedure; provided, the amount of the award is at the
5discretion of the court; and provided, the court shall make no
6award in excess of the following amounts: for imprisonment of 5
7years or less, not more than $85,350; for imprisonment of 14
8years or less but over 5 years, not more than $170,000; for
9imprisonment of over 14 years, not more than $199,150; and
10provided further, the court shall fix attorney's fees not to
11exceed 25% of the award granted. On or after the effective date
12of this amendatory Act of the 95th General Assembly, the court
13shall annually adjust the maximum awards authorized by this
14subsection (c) to reflect the increase, if any, in the Consumer
15Price Index For All Urban Consumers for the previous calendar
16year, as determined by the United States Department of Labor,
17except that no annual increment may exceed 5%. For the annual
18adjustments, if the Consumer Price Index decreases during a
19calendar year, there shall be no adjustment for that calendar
20year. The transmission by the Prisoner Review Board or the
21clerk of the circuit court of the information described in
22Section 11(b) to the clerk of the Court of Claims is conclusive
23evidence of the validity of the claim. The changes made by this
24amendatory Act of the 95th General Assembly apply to all claims
25pending on or filed on or after the effective date.
26    (d) All claims against the State for damages in cases

 

 

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1sounding in tort, if a like cause of action would lie against a
2private person or corporation in a civil suit, and all like
3claims sounding in tort against the Medical Center Commission,
4the Board of Trustees of the University of Illinois, the Board
5of Trustees of Southern Illinois University, the Board of
6Trustees of Chicago State University, the Board of Trustees of
7Eastern Illinois University, the Board of Trustees of Governors
8State University, the Board of Trustees of Illinois State
9University, the Board of Trustees of Northeastern Illinois
10University, the Board of Trustees of Northern Illinois
11University, the Board of Trustees of Western Illinois
12University, or the Board of Trustees of the Illinois
13Mathematics and Science Academy; provided, that an award for
14damages in a case sounding in tort, other than certain cases
15involving the operation of a State vehicle described in this
16paragraph, shall not exceed the sum of $2,000,000 to or for the
17benefit of any claimant. The $2,000,000 limit prescribed by
18this Section does not apply to an award of damages in any case
19sounding in tort arising out of the operation by a State
20employee of a vehicle owned, leased or controlled by the State.
21The defense that the State or the Medical Center Commission or
22the Board of Trustees of the University of Illinois, the Board
23of Trustees of Southern Illinois University, the Board of
24Trustees of Chicago State University, the Board of Trustees of
25Eastern Illinois University, the Board of Trustees of Governors
26State University, the Board of Trustees of Illinois State

 

 

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1University, the Board of Trustees of Northeastern Illinois
2University, the Board of Trustees of Northern Illinois
3University, the Board of Trustees of Western Illinois
4University, or the Board of Trustees of the Illinois
5Mathematics and Science Academy is not liable for the
6negligence of its officers, agents, and employees in the course
7of their employment is not applicable to the hearing and
8determination of such claims. The changes to this Section made
9by this amendatory Act of the 100th General Assembly apply only
10to claims filed on or after July 1, 2015.
11    The court shall annually adjust the maximum awards
12authorized by this subsection to reflect the increase, if any,
13in the Consumer Price Index For All Urban Consumers for the
14previous calendar year, as determined by the United States
15Department of Labor. The Comptroller shall make the new amount
16resulting from each annual adjustment available to the public
17via the Comptroller's official website by January 31 of every
18year.
19    (e) All claims for recoupment made by the State of Illinois
20against any claimant.
21    (f) All claims pursuant to the Line of Duty Compensation
22Act. A claim under that Act must be heard and determined within
23one year after the application for that claim is filed with the
24Court as provided in that Act.
25    (g) All claims filed pursuant to the Crime Victims
26Compensation Act.

 

 

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1    (h) All claims pursuant to the Illinois National
2Guardsman's Compensation Act. A claim under that Act must be
3heard and determined within one year after the application for
4that claim is filed with the Court as provided in that Act.
5    (i) All claims authorized by subsection (a) of Section
610-55 of the Illinois Administrative Procedure Act for the
7expenses incurred by a party in a contested case on the
8administrative level.
9    (j) All appeals of determinations by the Department of
10Revenue regarding awards under Section 4.5 of the Illinois
11False Claims Act.
12(Source: P.A. 100-1124, eff. 11-27-18.)
 
13    Section 10. The Illinois False Claims Act is amended by
14changing Section 4 and by adding Section 4.5 as follows:
 
15    (740 ILCS 175/4)  (from Ch. 127, par. 4104)
16    Sec. 4. Civil actions for false claims.
17    (a) Responsibilities of the Attorney General and the
18Department of State Police. The Attorney General or the
19Department of State Police shall diligently investigate a civil
20violation under Section 3. If the Attorney General finds that a
21person violated or is violating Section 3, the Attorney General
22may bring a civil action under this Section against the person.
23    The State shall receive an amount for reasonable expenses
24that the court finds to have been necessarily incurred by the

 

 

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1Attorney General, including reasonable attorneys' fees and
2costs. All such expenses, fees, and costs shall be awarded
3against the defendant. The court may award amounts from the
4proceeds of an action or settlement that it considers
5appropriate to any governmental entity or program that has been
6adversely affected by a defendant. The Attorney General, if
7necessary, shall direct the State Treasurer to make a
8disbursement of funds as provided in court orders or settlement
9agreements.
10    (b) Actions by private persons.
11        (1) A person may bring a civil action for a violation
12    of Section 3 for the person and for the State. The action
13    shall be brought in the name of the State. The action may
14    be dismissed only if the court and the Attorney General
15    give written consent to the dismissal and their reasons for
16    consenting.
17        (2) A copy of the complaint and written disclosure of
18    substantially all material evidence and information the
19    person possesses shall be served on the State. The
20    complaint shall be filed in camera, shall remain under seal
21    for at least 60 days, and shall not be served on the
22    defendant until the court so orders. The State may elect to
23    intervene and proceed with the action within 60 days after
24    it receives both the complaint and the material evidence
25    and information.
26        (3) The State may, for good cause shown, move the court

 

 

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1    for extensions of the time during which the complaint
2    remains under seal under paragraph (2). Any such motions
3    may be supported by affidavits or other submissions in
4    camera. The defendant shall not be required to respond to
5    any complaint filed under this Section until 20 days after
6    the complaint is unsealed and served upon the defendant.
7        (4) Before the expiration of the 60-day period or any
8    extensions obtained under paragraph (3), the State shall:
9            (A) proceed with the action, in which case the
10        action shall be conducted by the State; or
11            (B) notify the court that it declines to take over
12        the action, in which case the person bringing the
13        action shall have the right to conduct the action.
14        (5) When a person brings an action under this
15    subsection (b), no person other than the State may
16    intervene or bring a related action based on the facts
17    underlying the pending action.
18    (c) Rights of the parties to Qui Tam actions.
19        (1) If the State proceeds with the action, it shall
20    have the primary responsibility for prosecuting the
21    action, and shall not be bound by an act of the person
22    bringing the action. Such person shall have the right to
23    continue as a party to the action, subject to the
24    limitations set forth in paragraph (2).
25        (2)(A) The State may dismiss the action
26    notwithstanding the objections of the person initiating

 

 

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1    the action if the person has been notified by the State of
2    the filing of the motion and the court has provided the
3    person with an opportunity for a hearing on the motion.
4        (B) The State may settle the action with the defendant
5    notwithstanding the objections of the person initiating
6    the action if the court determines, after a hearing, that
7    the proposed settlement is fair, adequate, and reasonable
8    under all the circumstances. Upon a showing of good cause,
9    such hearing may be held in camera.
10        (C) Upon a showing by the State that unrestricted
11    participation during the course of the litigation by the
12    person initiating the action would interfere with or unduly
13    delay the State's prosecution of the case, or would be
14    repetitious, irrelevant, or for purposes of harassment,
15    the court may, in its discretion, impose limitations on the
16    person's participation, such as:
17            (i) limiting the number of witnesses the person may
18        call:
19            (ii) limiting the length of the testimony of such
20        witnesses;
21            (iii) limiting the person's cross-examination of
22        witnesses; or
23            (iv) otherwise limiting the participation by the
24        person in the litigation.
25        (D) Upon a showing by the defendant that unrestricted
26    participation during the course of the litigation by the

 

 

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1    person initiating the action would be for purposes of
2    harassment or would cause the defendant undue burden or
3    unnecessary expense, the court may limit the participation
4    by the person in the litigation.
5        (3) If the State elects not to proceed with the action,
6    the person who initiated the action shall have the right to
7    conduct the action. If the State so requests, it shall be
8    served with copies of all pleadings filed in the action and
9    shall be supplied with copies of all deposition transcripts
10    (at the State's expense). When a person proceeds with the
11    action, the court, without limiting the status and rights
12    of the person initiating the action, may nevertheless
13    permit the State to intervene at a later date upon a
14    showing of good cause.
15        (4) Whether or not the State proceeds with the action,
16    upon a showing by the State that certain actions of
17    discovery by the person initiating the action would
18    interfere with the State's investigation or prosecution of
19    a criminal or civil matter arising out of the same facts,
20    the court may stay such discovery for a period of not more
21    than 60 days. Such a showing shall be conducted in camera.
22    The court may extend the 60-day period upon a further
23    showing in camera that the State has pursued the criminal
24    or civil investigation or proceedings with reasonable
25    diligence and any proposed discovery in the civil action
26    will interfere with the ongoing criminal or civil

 

 

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1    investigation or proceedings.
2        (5) Notwithstanding subsection (b), the State may
3    elect to pursue its claim through any alternate remedy
4    available to the State, including any administrative
5    proceeding to determine a civil money penalty. If any such
6    alternate remedy is pursued in another proceeding, the
7    person initiating the action shall have the same rights in
8    such proceeding as such person would have had if the action
9    had continued under this Section. Any finding of fact or
10    conclusion of law made in such other proceeding that has
11    become final shall be conclusive on all parties to an
12    action under this Section. For purposes of the preceding
13    sentence, a finding or conclusion is final if it has been
14    finally determined on appeal to the appropriate court, if
15    all time for filing such an appeal with respect to the
16    finding or conclusion has expired, or if the finding or
17    conclusion is not subject to judicial review.
18    (d) Award to Qui Tam plaintiff.
19        (1) If the State proceeds with an action brought by a
20    person under subsection (b), such person shall, subject to
21    the second sentence of this paragraph, receive at least 15%
22    but not more than 25% of the proceeds of the action or
23    settlement of the claim, depending upon the extent to which
24    the person substantially contributed to the prosecution of
25    the action. Where the action is one which the court finds
26    to be based primarily on disclosures of specific

 

 

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1    information (other than information provided by the person
2    bringing the action) relating to allegations or
3    transactions in a criminal, civil, or administrative
4    hearing, in a legislative, administrative, or Auditor
5    General's report, hearing, audit, or investigation, or
6    from the news media, the court may award such sums as it
7    considers appropriate, but in no case more than 10%, if
8    any, of the proceeds, taking into account the significance
9    of the information and the role of the person bringing the
10    action in advancing the case to litigation. Any payment to
11    a person under the first or second sentence of this
12    paragraph (1) shall be made from the proceeds. Any such
13    person shall also receive an amount for reasonable expenses
14    which the court finds to have been necessarily incurred,
15    plus reasonable attorneys' fees and costs. The State shall
16    also receive an amount for reasonable expenses which the
17    court finds to have been necessarily incurred by the
18    Attorney General, including reasonable attorneys' fees and
19    costs. All such expenses, fees, and costs shall be awarded
20    against the defendant. The court may award amounts from the
21    proceeds of an action or settlement that it considers
22    appropriate to any governmental entity or program that has
23    been adversely affected by a defendant. The Attorney
24    General, if necessary, shall direct the State Treasurer to
25    make a disbursement of funds as provided in court orders or
26    settlement agreements.

 

 

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1        (2) If the State does not proceed with an action under
2    this Section, the person bringing the action or settling
3    the claim shall receive an amount which the court decides
4    is reasonable for collecting the civil penalty and damages.
5    The amount shall be not less than 25% and not more than 30%
6    of the proceeds of the action or settlement and shall be
7    paid out of such proceeds. Such person shall also receive
8    an amount for reasonable expenses which the court finds to
9    have been necessarily incurred, plus reasonable attorneys'
10    fees and costs. All such expenses, fees, and costs shall be
11    awarded against the defendant. The court may award amounts
12    from the proceeds of an action or settlement that it
13    considers appropriate to any governmental entity or
14    program that has been adversely affected by a defendant.
15    The Attorney General, if necessary, shall direct the State
16    Treasurer to make a disbursement of funds as provided in
17    court orders or settlement agreements.
18        (3) Whether or not the State proceeds with the action,
19    if the court finds that the action was brought by a person
20    who planned and initiated the violation of Section 3 upon
21    which the action was brought, then the court may, to the
22    extent the court considers appropriate and without
23    limitation, reduce the share of the proceeds of the action
24    which the person would otherwise receive under paragraph
25    (1) or (2) of this subsection (d), taking into account the
26    role of that person in advancing the case to litigation and

 

 

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1    any relevant circumstances pertaining to the violation. If
2    the person bringing the action is convicted of criminal
3    conduct arising from his or her role in the violation of
4    Section 3, that person shall be dismissed from the civil
5    action and shall not receive any share of the proceeds of
6    the action. Such dismissal shall not prejudice the right of
7    the State to continue the action, represented by the
8    Attorney General.
9        (4) If the State does not proceed with the action and
10    the person bringing the action conducts the action, the
11    court may award to the defendant its reasonable attorneys'
12    fees and expenses if the defendant prevails in the action
13    and the court finds that the claim of the person bringing
14    the action was clearly frivolous, clearly vexatious, or
15    brought primarily for purposes of harassment.
16    (e) Certain actions barred.
17        (1) No court shall have jurisdiction over an action
18    brought by a former or present member of the Guard under
19    subsection (b) of this Section against a member of the
20    Guard arising out of such person's service in the Guard.
21        (2)(A) No court shall have jurisdiction over an action
22    brought under subsection (b) against a member of the
23    General Assembly, a member of the judiciary, or an exempt
24    official if the action is based on evidence or information
25    known to the State when the action was brought.
26        (B) For purposes of this paragraph (2), "exempt

 

 

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1    official" means any of the following officials in State
2    service: directors of departments established under the
3    Civil Administrative Code of Illinois, the Adjutant
4    General, the Assistant Adjutant General, the Director of
5    the State Emergency Services and Disaster Agency, members
6    of the boards and commissions, and all other positions
7    appointed by the Governor by and with the consent of the
8    Senate.
9        (3) In no event may a person bring an action under
10    subsection (b) which is based upon allegations or
11    transactions which are the subject of a civil suit or an
12    administrative civil money penalty proceeding in which the
13    State is already a party.
14        (4)(A) The court shall dismiss an action or claim under
15    this Section, unless opposed by the State, if substantially
16    the same allegations or transactions as alleged in the
17    action or claim were publicly disclosed:
18            (i) in a criminal, civil, or administrative
19        hearing in which the State or its agent is a party;
20            (ii) in a State legislative, State Auditor
21        General, or other State report, hearing, audit, or
22        investigation; or
23            (iii) from the news media,
24    unless the action is brought by the Attorney General or the
25    person bringing the action is an original source of the
26    information.

 

 

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1        (B) For purposes of this paragraph (4), "original
2    source" means an individual who either (i) prior to a
3    public disclosure under subparagraph (A) of this paragraph
4    (4), has voluntarily disclosed to the State the information
5    on which allegations or transactions in a claim are based,
6    or (ii) has knowledge that is independent of and materially
7    adds to the publicly disclosed allegations or
8    transactions, and who has voluntarily provided the
9    information to the State before filing an action under this
10    Section.
11        (5) No court has jurisdiction over a civil action
12    brought under subsection (b) that relates to or involves a
13    false claim regarding a tax administered by the Department
14    of Revenue under the Use Tax Act; the Service Use Tax Act;
15    the Service Occupation Tax Act; the Retailers' Occupation
16    Tax Act; the Cigarette Machine Operators' Occupation Tax
17    Act; the Cigarette Tax Act; the Cigarette Use Tax Act; the
18    Home Rule Cigarette Tax Restriction Act; the Tobacco
19    Products Tax Act of 1995; the Hotel Operators' Occupation
20    Tax Act; the Use and Occupation Tax Refund Act; the
21    Automobile Renting Occupation and Use Tax Act; the Aircraft
22    Use Tax Law; the Watercraft Use Tax Law; the Direct Pay
23    Permit Implementation Act; the Governmental Tax Reform
24    Validation Act; the Simplified Sales and Use Tax
25    Administration Act; the Gas Use Tax Law; the Live Adult
26    Entertainment Facility Surcharge Act; the Illinois Estate

 

 

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1    and Generation-Skipping Transfer Tax Act; the Motor Fuel
2    Tax Law; the Coin-Operated Amusement Device and Redemption
3    Machine Tax Act; the Mobile Home Local Services Tax Act;
4    the Mobile Home Local Services Tax Enforcement Act; the
5    Manufactured Home Installation Act; the Cannabis and
6    Controlled Substances Tax Act; the Illinois Central
7    Railroad Tax Act; the Messages Tax Act; the Gas Revenue Tax
8    Act; the Public Utilities Revenue Act; the Water Company
9    Invested Capital Tax Act; the Telecommunications Excise
10    Tax Act; the Telecommunications Infrastructure Maintenance
11    Fee Act; the Simplified Municipal Telecommunications Tax
12    Act; the Mobile Telecommunications Sourcing Conformity
13    Act; the Electricity Excise Tax Law; the Electricity
14    Infrastructure Maintenance Fee Law; Section 31 of the
15    Innovation Development and Economy Act; Sections 5-1006,
16    5-1006.5, 5-1006.7, 5-1007, 5-1008, 5-1008.5, and 5-1035.1
17    of the Counties Code; Sections 8-11-1, 8-11-2, 8-11-3,
18    8-11-4, 8-11-5, 8-11-6, 8-11-6b, 8-11-7, 8-11-8, 8-11-11,
19    8-11-15, 8-11-16, 8-11-20, 8-11-21, and 11-74.3-3 of the
20    Illinois Municipal Code; Section 13 of the Metropolitan
21    Pier and Exposition Authority Act; Section 30 of the
22    Metro-East Park and Recreation District Act; Section 5.01
23    of the Local Mass Transit District Act; Section 4.03 of the
24    Regional Transportation Authority Act; and Section 4 of the
25    Water Commission Act of 1985, unless the action is brought
26    by the Attorney General. Nothing in this Section affects

 

 

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1    the Illinois Income Tax Act exclusion in subsection (c) of
2    Section 3 of this Act.
3    (f) State not liable for certain expenses. The State is not
4liable for expenses which a person incurs in bringing an action
5under this Section.
6    (g) Relief from retaliatory actions.
7        (1) In general, any employee, contractor, or agent
8    shall be entitled to all relief necessary to make that
9    employee, contractor, or agent whole, if that employee,
10    contractor, or agent is discharged, demoted, suspended,
11    threatened, harassed, or in any other manner discriminated
12    against in the terms and conditions of employment because
13    of lawful acts done by the employee, contractor, agent, or
14    associated others in furtherance of an action under this
15    Section or other efforts to stop one or more violations of
16    this Act.
17        (2) Relief under paragraph (1) shall include
18    reinstatement with the same seniority status that the
19    employee, contractor, or agent would have had but for the
20    discrimination, 2 times the amount of back pay, interest on
21    the back pay, and compensation for any special damages
22    sustained as a result of the discrimination, including
23    litigation costs and reasonable attorneys' fees. An action
24    under this subsection (g) may be brought in the appropriate
25    circuit court for the relief provided in this subsection
26    (g).

 

 

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1        (3) A civil action under this subsection may not be
2    brought more than 3 years after the date when the
3    retaliation occurred.
4(Source: P.A. 96-1304, eff. 7-27-10; 97-978, eff. 8-17-12.)
 
5    (740 ILCS 175/4.5 new)
6    Sec. 4.5. Actions for false claims relating to certain tax
7Acts administered by the Department of Revenue.
8    (a) The Department of Revenue has the sole authority to
9bring an administrative action resulting from information
10provided by any person alleging a false claim, statement, or
11record, as defined in Section 3 of this Act, pertaining to any
12tax administered by the Department of Revenue under a provision
13identified in subdivision (e)(5) of Section 4 of this Act. The
14Attorney General has the sole authority to bring a judicial
15action under this Act for a false claim, statement, or record,
16as defined in Section 3 of this Act, pertaining to any tax
17administered by the Department of Revenue under a provision
18identified in subdivision (e)(5) of Section 4 of this Act.
19    (b) A person may provide to the Department of Revenue any
20information alleging a false claim, statement, or record, as
21defined in Section 3 of this Act, pertaining to any tax
22administered by the Department of Revenue under a provision
23identified in subdivision (e)(5) of Section 4 of this Act. The
24Department of Revenue shall establish, by rule, a procedure for
25the reporting of any allegation of a false claim, statement, or

 

 

HB2139- 19 -LRB101 04881 LNS 49890 b

1record to the Department. The Department of Revenue shall
2notify the Attorney General within 60 days of receipt of a
3report under this subsection (b). The Department of Revenue
4shall investigate all allegations of a false claim, statement,
5or record and make a recommendation to the Attorney General as
6to whether the Attorney General should bring an action under
7this Act for all applicable tax and interest the Department of
8Revenue determines is due under the appropriate tax act. The
9Attorney General has the ultimate authority to accept or reject
10the Department of Revenue's recommendation. Nothing in this
11Section limits the authority of the Attorney General to bring
12an action under this Act at any time, even in the absence of a
13recommendation from the Department of Revenue. A person found
14liable in an action under this Act is subject to the assessment
15of penalties and damages as specified in Section 3 of this Act.
16    (c) In exercising its discretion in administering and
17enforcing the tax laws, the Department of Revenue may determine
18that a person's allegations of a false claim, statement, or
19record are best handled within the course of an audit conducted
20within the Department of Revenue's normal course of business.
21If the Department of Revenue exercises its audit functions and
22the audit results in a contested tax assessment, the person
23audited shall retain all of his or her legal rights to resolve
24the matter in any forum where jurisdiction is proper, including
25an administrative hearing before the Department of Revenue, the
26Illinois Independent Tax Tribunal, circuit court under the

 

 

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1State Officers and Employees Money Disposition Act, or any
2other judicial proceeding. Under no circumstances may a person,
3other than the person audited and his or her attorney, have any
4right to participate in those proceedings, participate in
5settlement negotiations, challenge the validity of any
6settlement between the Department and any person, or review any
7materials subject to the confidentiality provisions of the
8underlying tax law. If the Attorney General files an action
9under this Act that relates to or involves a false claim
10regarding a tax administered by the Department of Revenue under
11a provision identified in subdivision (e)(5) of Section 4 of
12this Act, any Department of Revenue administrative proceeding
13that seeks recovery for the same conduct alleged in the
14Attorney General's complaint shall be automatically stayed
15until resolution of the action brought by the Attorney General
16under this Act. However, a Department of Revenue audit or
17investigation may not be stayed under this subsection (c).
18    (d) If the Attorney General proceeds with a judicial action
19under this Act based on information brought to the Department
20of Revenue's attention by a person, the person shall, subject
21to subsection (e) of this Section, receive as an award an
22amount equal to at least 15% but not more than 30% of the
23collected proceeds (including penalties, interest, additions
24to tax, and additional amounts) resulting from the action and
25any related actions, or from any settlement in response to the
26action, taking into account the significance of the person's

 

 

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1information and the role of the person and any legal
2representative of the person in contributing to the action. If
3the Department of Revenue proceeds with an administrative
4action based on information brought to its attention by a
5person, the person shall, subject to subsection (e) of this
6Section, receive as an award an amount equal to at least 10%
7but not more than 15% of the collected proceeds (including
8penalties, interest, additions to tax, and additional amounts)
9resulting from the action or from any settlement in response to
10the action, taking into account the significance of the
11person's information and the role of the person and any legal
12representative of the person in contributing to the action. A
13person who brings to the Department's attention information
14alleging a false claim, statement, or record, as defined in
15Section 3 of this Act, pertaining to any tax administered by
16the Department of Revenue under a provision identified in
17subdivision (e)(5) of Section 4 of this Act, may not receive
18any amounts for expenses, attorney's fees, or costs.
19    (e) If the judicial or administrative action described in
20subsection (d) is one that the Department of Revenue determines
21to be based principally on disclosures of specific allegations
22(other than information provided by the person described in
23subsection (d)) resulting from a judicial or administrative
24hearing, from a governmental report, hearing, audit, or
25investigation, or from the news media, the Department of
26Revenue may award to the person a sum as the Department of

 

 

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1Revenue considers appropriate, but in no case more than 10%, if
2any, of the collected proceeds (including penalties, interest,
3additions to tax, and additional amounts) resulting from the
4action (including any related actions) or from any settlement
5in response to the action, taking into account the significance
6of the person's information and the role of the person and any
7legal representative of the person in contributing to the
8action. This subsection (e) does not apply if the information
9resulting in the initiation of the administrative or judicial
10action described in subsection (d) was originally provided by
11the person described in subsection (d).
12    (f) If the Department of Revenue determines that a claim
13for an award under subsection (d) or (e) is brought by a person
14who planned and initiated the actions that led to the false
15claim and any resulting underpayment of tax, the Department of
16Revenue may reduce the award to the extent it considers
17appropriate and without limitation. If the person is convicted
18of criminal conduct arising from conduct described in this
19subsection (f), the Department of Revenue may not pay any award
20to the person.
21    (g) A determination by the Department of Revenue regarding
22an award under this Section may be appealed exclusively to the
23Court of Claims. An appeal under this subsection (g) must be
24filed within 30 days of the Department of Revenue's
25determination of an award under this Section.