102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3038

 

Introduced 2/19/2021, 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 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. 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.


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A BILL FOR

 

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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
11    of the State of Illinois or upon any regulation adopted
12    thereunder by an executive or administrative officer or
13    agency; provided, however, the court shall not have
14    jurisdiction (i) to hear or determine claims arising under
15    the Workers' Compensation Act or the Workers' Occupational
16    Diseases Act, or claims for expenses in civil litigation,
17    or (ii) to review administrative decisions for which a
18    statute provides that review shall be in the circuit or
19    appellate court.
20        (b) All claims against the State founded upon any
21    contract entered into with the State of Illinois.
22        (c) All claims against the State for time unjustly
23    served in prisons of this State when the person imprisoned

 

 

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

 

 

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1    the claim. The changes made by this amendatory Act of the
2    95th General Assembly apply to all claims pending on or
3    filed on or after the effective date.
4        (d) All claims against the State for damages in cases
5    sounding in tort, if a like cause of action would lie
6    against a private person or corporation in a civil suit,
7    and all like claims sounding in tort against the Medical
8    Center Commission, the Board of Trustees of the University
9    of Illinois, the Board of Trustees of Southern Illinois
10    University, the Board of Trustees of Chicago State
11    University, the Board of Trustees of Eastern Illinois
12    University, the Board of Trustees of Governors State
13    University, the Board of Trustees of Illinois State
14    University, the Board of Trustees of Northeastern Illinois
15    University, the Board of Trustees of Northern Illinois
16    University, the Board of Trustees of Western Illinois
17    University, or the Board of Trustees of the Illinois
18    Mathematics and Science Academy; provided, that an award
19    for damages in a case sounding in tort, other than certain
20    cases involving the operation of a State vehicle described
21    in this paragraph, shall not exceed the sum of $2,000,000
22    to or for the benefit of any claimant. The $2,000,000
23    limit prescribed by this Section does not apply to an
24    award of damages in any case sounding in tort arising out
25    of the operation by a State employee of a vehicle owned,
26    leased or controlled by the State. The defense that the

 

 

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

 

 

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1    Illinois against any claimant.
2        (f) All claims pursuant to the Line of Duty
3    Compensation Act. A claim under that Act must be heard and
4    determined within one year after the application for that
5    claim is filed with the Court as provided in that Act.
6        (g) All claims filed pursuant to the Crime Victims
7    Compensation Act.
8        (h) All claims pursuant to the Illinois National
9    Guardsman's Compensation Act. A claim under that Act must
10    be heard and determined within one year after the
11    application for that claim is filed with the Court as
12    provided in that Act.
13        (i) All claims authorized by subsection (a) of Section
14    10-55 of the Illinois Administrative Procedure Act for the
15    expenses incurred by a party in a contested case on the
16    administrative level.
17        (j) All appeals of determinations by the Department of
18    Revenue regarding awards under Section 4.5 of the Illinois
19    False Claims Act.
20(Source: P.A. 100-1124, eff. 11-27-18.)
 
21    Section 10. The Illinois False Claims Act is amended by
22changing Section 4 and by adding Section 4.5 as follows:
 
23    (740 ILCS 175/4)  (from Ch. 127, par. 4104)
24    Sec. 4. Civil actions for false claims.

 

 

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1    (a) Responsibilities of the Attorney General and the
2Department of State Police. The Attorney General or the
3Department of State Police shall diligently investigate a
4civil violation under Section 3. If the Attorney General finds
5that a person violated or is violating Section 3, the Attorney
6General may bring a civil action under this Section against
7the person.
8    The State shall receive an amount for reasonable expenses
9that the court finds to have been necessarily incurred by the
10Attorney General, including reasonable attorneys' fees and
11costs. All such expenses, fees, and costs shall be awarded
12against the defendant. The court may award amounts from the
13proceeds of an action or settlement that it considers
14appropriate to any governmental entity or program that has
15been adversely affected by a defendant. The Attorney General,
16if necessary, shall direct the State Treasurer to make a
17disbursement of funds as provided in court orders or
18settlement agreements.
19    (b) Actions by private persons.
20        (1) A person may bring a civil action for a violation
21    of Section 3 for the person and for the State. The action
22    shall be brought in the name of the State. The action may
23    be dismissed only if the court and the Attorney General
24    give written consent to the dismissal and their reasons
25    for consenting.
26        (2) A copy of the complaint and written disclosure of

 

 

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1    substantially all material evidence and information the
2    person possesses shall be served on the State. The
3    complaint shall be filed in camera, shall remain under
4    seal for at least 60 days, and shall not be served on the
5    defendant until the court so orders. The State may elect
6    to intervene and proceed with the action within 60 days
7    after it receives both the complaint and the material
8    evidence and information.
9        (3) The State may, for good cause shown, move the
10    court for extensions of the time during which the
11    complaint remains under seal under paragraph (2). Any such
12    motions may be supported by affidavits or other
13    submissions in camera. The defendant shall not be required
14    to respond to any complaint filed under this Section until
15    20 days after the complaint is unsealed and served upon
16    the defendant.
17        (4) Before the expiration of the 60-day period or any
18    extensions obtained under paragraph (3), the State shall:
19            (A) proceed with the action, in which case the
20        action shall be conducted by the State; or
21            (B) notify the court that it declines to take over
22        the action, in which case the person bringing the
23        action shall have the right to conduct the action.
24        (5) When a person brings an action under this
25    subsection (b), no person other than the State may
26    intervene or bring a related action based on the facts

 

 

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1    underlying the pending action.
2    (c) Rights of the parties to Qui Tam actions.
3        (1) If the State proceeds with the action, it shall
4    have the primary responsibility for prosecuting the
5    action, and shall not be bound by an act of the person
6    bringing the action. Such person shall have the right to
7    continue as a party to the action, subject to the
8    limitations set forth in paragraph (2).
9        (2)(A) The State may dismiss the action
10    notwithstanding the objections of the person initiating
11    the action if the person has been notified by the State of
12    the filing of the motion and the court has provided the
13    person with an opportunity for a hearing on the motion.
14        (B) The State may settle the action with the defendant
15    notwithstanding the objections of the person initiating
16    the action if the court determines, after a hearing, that
17    the proposed settlement is fair, adequate, and reasonable
18    under all the circumstances. Upon a showing of good cause,
19    such hearing may be held in camera.
20        (C) Upon a showing by the State that unrestricted
21    participation during the course of the litigation by the
22    person initiating the action would interfere with or
23    unduly delay the State's prosecution of the case, or would
24    be repetitious, irrelevant, or for purposes of harassment,
25    the court may, in its discretion, impose limitations on
26    the person's participation, such as:

 

 

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1            (i) limiting the number of witnesses the person
2        may call:
3            (ii) limiting the length of the testimony of such
4        witnesses;
5            (iii) limiting the person's cross-examination of
6        witnesses; or
7            (iv) otherwise limiting the participation by the
8        person in the litigation.
9        (D) Upon a showing by the defendant that unrestricted
10    participation during the course of the litigation by the
11    person initiating the action would be for purposes of
12    harassment or would cause the defendant undue burden or
13    unnecessary expense, the court may limit the participation
14    by the person in the litigation.
15        (3) If the State elects not to proceed with the
16    action, the person who initiated the action shall have the
17    right to conduct the action. If the State so requests, it
18    shall be served with copies of all pleadings filed in the
19    action and shall be supplied with copies of all deposition
20    transcripts (at the State's expense). When a person
21    proceeds with the action, the court, without limiting the
22    status and rights of the person initiating the action, may
23    nevertheless permit the State to intervene at a later date
24    upon a showing of good cause.
25        (4) Whether or not the State proceeds with the action,
26    upon a showing by the State that certain actions of

 

 

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1    discovery by the person initiating the action would
2    interfere with the State's investigation or prosecution of
3    a criminal or civil matter arising out of the same facts,
4    the court may stay such discovery for a period of not more
5    than 60 days. Such a showing shall be conducted in camera.
6    The court may extend the 60-day period upon a further
7    showing in camera that the State has pursued the criminal
8    or civil investigation or proceedings with reasonable
9    diligence and any proposed discovery in the civil action
10    will interfere with the ongoing criminal or civil
11    investigation or proceedings.
12        (5) Notwithstanding subsection (b), the State may
13    elect to pursue its claim through any alternate remedy
14    available to the State, including any administrative
15    proceeding to determine a civil money penalty. If any such
16    alternate remedy is pursued in another proceeding, the
17    person initiating the action shall have the same rights in
18    such proceeding as such person would have had if the
19    action had continued under this Section. Any finding of
20    fact or conclusion of law made in such other proceeding
21    that has become final shall be conclusive on all parties
22    to an action under this Section. For purposes of the
23    preceding sentence, a finding or conclusion is final if it
24    has been finally determined on appeal to the appropriate
25    court, if all time for filing such an appeal with respect
26    to the finding or conclusion has expired, or if the

 

 

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1    finding or conclusion is not subject to judicial review.
2    (d) Award to Qui Tam plaintiff.
3        (1) If the State proceeds with an action brought by a
4    person under subsection (b), such person shall, subject to
5    the second sentence of this paragraph, receive at least
6    15% but not more than 25% of the proceeds of the action or
7    settlement of the claim, depending upon the extent to
8    which the person substantially contributed to the
9    prosecution of the action. Where the action is one which
10    the court finds to be based primarily on disclosures of
11    specific information (other than information provided by
12    the person bringing the action) relating to allegations or
13    transactions in a criminal, civil, or administrative
14    hearing, in a legislative, administrative, or Auditor
15    General's report, hearing, audit, or investigation, or
16    from the news media, the court may award such sums as it
17    considers appropriate, but in no case more than 10%, if
18    any, of the proceeds, taking into account the significance
19    of the information and the role of the person bringing the
20    action in advancing the case to litigation. Any payment to
21    a person under the first or second sentence of this
22    paragraph (1) shall be made from the proceeds. Any such
23    person shall also receive an amount for reasonable
24    expenses which the court finds to have been necessarily
25    incurred, plus reasonable attorneys' fees and costs. The
26    State shall also receive an amount for reasonable expenses

 

 

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1    which the court finds to have been necessarily incurred by
2    the Attorney General, including reasonable attorneys' fees
3    and costs. All such expenses, fees, and costs shall be
4    awarded against the defendant. The court may award amounts
5    from the proceeds of an action or settlement that it
6    considers appropriate to any governmental entity or
7    program that has been adversely affected by a defendant.
8    The Attorney General, if necessary, shall direct the State
9    Treasurer to make a disbursement of funds as provided in
10    court orders or settlement agreements.
11        (2) If the State does not proceed with an action under
12    this Section, the person bringing the action or settling
13    the claim shall receive an amount which the court decides
14    is reasonable for collecting the civil penalty and
15    damages. The amount shall be not less than 25% and not more
16    than 30% of the proceeds of the action or settlement and
17    shall be paid out of such proceeds. Such person shall also
18    receive an amount for reasonable expenses which the court
19    finds to have been necessarily incurred, plus reasonable
20    attorneys' fees and costs. All such expenses, fees, and
21    costs shall be awarded against the defendant. The court
22    may award amounts from the proceeds of an action or
23    settlement that it considers appropriate to any
24    governmental entity or program that has been adversely
25    affected by a defendant. The Attorney General, if
26    necessary, shall direct the State Treasurer to make a

 

 

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1    disbursement of funds as provided in court orders or
2    settlement agreements.
3        (3) Whether or not the State proceeds with the action,
4    if the court finds that the action was brought by a person
5    who planned and initiated the violation of Section 3 upon
6    which the action was brought, then the court may, to the
7    extent the court considers appropriate and without
8    limitation, reduce the share of the proceeds of the action
9    which the person would otherwise receive under paragraph
10    (1) or (2) of this subsection (d), taking into account the
11    role of that person in advancing the case to litigation
12    and any relevant circumstances pertaining to the
13    violation. If the person bringing the action is convicted
14    of criminal conduct arising from his or her role in the
15    violation of Section 3, that person shall be dismissed
16    from the civil action and shall not receive any share of
17    the proceeds of the action. Such dismissal shall not
18    prejudice the right of the State to continue the action,
19    represented by the Attorney General.
20        (4) If the State does not proceed with the action and
21    the person bringing the action conducts the action, the
22    court may award to the defendant its reasonable attorneys'
23    fees and expenses if the defendant prevails in the action
24    and the court finds that the claim of the person bringing
25    the action was clearly frivolous, clearly vexatious, or
26    brought primarily for purposes of harassment.

 

 

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1    (e) Certain actions barred.
2        (1) No court shall have jurisdiction over an action
3    brought by a former or present member of the Guard under
4    subsection (b) of this Section against a member of the
5    Guard arising out of such person's service in the Guard.
6        (2)(A) No court shall have jurisdiction over an action
7    brought under subsection (b) against a member of the
8    General Assembly, a member of the judiciary, or an exempt
9    official if the action is based on evidence or information
10    known to the State when the action was brought.
11        (B) For purposes of this paragraph (2), "exempt
12    official" means any of the following officials in State
13    service: directors of departments established under the
14    Civil Administrative Code of Illinois, the Adjutant
15    General, the Assistant Adjutant General, the Director of
16    the State Emergency Services and Disaster Agency, members
17    of the boards and commissions, and all other positions
18    appointed by the Governor by and with the consent of the
19    Senate.
20        (3) In no event may a person bring an action under
21    subsection (b) which is based upon allegations or
22    transactions which are the subject of a civil suit or an
23    administrative civil money penalty proceeding in which the
24    State is already a party.
25        (4)(A) The court shall dismiss an action or claim
26    under this Section, unless opposed by the State, if

 

 

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1    substantially the same allegations or transactions as
2    alleged in the action or claim were publicly disclosed:
3            (i) in a criminal, civil, or administrative
4        hearing in which the State or its agent is a party;
5            (ii) in a State legislative, State Auditor
6        General, or other State report, hearing, audit, or
7        investigation; or
8            (iii) from the news media,
9    unless the action is brought by the Attorney General or
10    the person bringing the action is an original source of
11    the information.
12        (B) For purposes of this paragraph (4), "original
13    source" means an individual who either (i) prior to a
14    public disclosure under subparagraph (A) of this paragraph
15    (4), has voluntarily disclosed to the State the
16    information on which allegations or transactions in a
17    claim are based, or (ii) has knowledge that is independent
18    of and materially adds to the publicly disclosed
19    allegations or transactions, and who has voluntarily
20    provided the information to the State before filing an
21    action under this Section.
22        (5) No court has jurisdiction over a civil action
23    brought under subsection (b) that relates to or involves a
24    false claim regarding a tax administered by the Department
25    of Revenue under the Use Tax Act; the Service Use Tax Act;
26    the Service Occupation Tax Act; the Retailers' Occupation

 

 

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1    Tax Act; the Cigarette Machine Operators' Occupation Tax
2    Act; the Cigarette Tax Act; the Cigarette Use Tax Act; the
3    Home Rule Cigarette Tax Restriction Act; the Tobacco
4    Products Tax Act of 1995; the Hotel Operators' Occupation
5    Tax Act; the Use and Occupation Tax Refund Act; the
6    Automobile Renting Occupation and Use Tax Act; the
7    Aircraft Use Tax Law; the Watercraft Use Tax Law; the
8    Direct Pay Permit Implementation Act; the Governmental Tax
9    Reform Validation Act; the Simplified Sales and Use Tax
10    Administration Act; the Gas Use Tax Law; the Live Adult
11    Entertainment Facility Surcharge Act; the Illinois Estate
12    and Generation-Skipping Transfer Tax Act; the Motor Fuel
13    Tax Law; the Coin-Operated Amusement Device and Redemption
14    Machine Tax Act; the Mobile Home Local Services Tax Act;
15    the Mobile Home Local Services Tax Enforcement Act; the
16    Manufactured Home Installation Act; the Illinois Central
17    Railroad Tax Act; the Messages Tax Act; the Gas Revenue
18    Tax Act; the Public Utilities Revenue Act; the Water
19    Company Invested Capital Tax Act; the Telecommunications
20    Excise Tax Act; the Telecommunications Infrastructure
21    Maintenance Fee Act; the Simplified Municipal
22    Telecommunications Tax Act; the Mobile Telecommunications
23    Sourcing Conformity Act; the Electricity Excise Tax Law;
24    the Electricity Infrastructure Maintenance Fee Law;
25    Section 31 of the Innovation Development and Economy Act;
26    Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, 5-1008,

 

 

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1    5-1008.5, and 5-1035.1 of the Counties Code; Sections
2    8-11-1, 8-11-2, 8-11-3, 8-11-4, 8-11-5, 8-11-6, 8-11-6b,
3    8-11-7, 8-11-8, 8-11-11, 8-11-15, 8-11-16, 8-11-20,
4    8-11-21, and 11-74.3-3 of the Illinois Municipal Code;
5    Section 13 of the Metropolitan Pier and Exposition
6    Authority Act; Section 30 of the Metro-East Park and
7    Recreation District Act; Section 5.01 of the Local Mass
8    Transit District Act; Section 4.03 of the Regional
9    Transportation Authority Act; and Section 4 of the Water
10    Commission Act of 1985, unless the action is brought by
11    the Attorney General. Nothing in this Section affects the
12    Illinois Income Tax Act exclusion in subsection (c) of
13    Section 3.
14    (f) State not liable for certain expenses. The State is
15not liable for expenses which a person incurs in bringing an
16action under this Section.
17    (g) Relief from retaliatory actions.
18        (1) In general, any employee, contractor, or agent
19    shall be entitled to all relief necessary to make that
20    employee, contractor, or agent whole, if that employee,
21    contractor, or agent is discharged, demoted, suspended,
22    threatened, harassed, or in any other manner discriminated
23    against in the terms and conditions of employment because
24    of lawful acts done by the employee, contractor, agent, or
25    associated others in furtherance of an action under this
26    Section or other efforts to stop one or more violations of

 

 

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1    this Act.
2        (2) Relief under paragraph (1) shall include
3    reinstatement with the same seniority status that the
4    employee, contractor, or agent would have had but for the
5    discrimination, 2 times the amount of back pay, interest
6    on the back pay, and compensation for any special damages
7    sustained as a result of the discrimination, including
8    litigation costs and reasonable attorneys' fees. An action
9    under this subsection (g) may be brought in the
10    appropriate circuit court for the relief provided in this
11    subsection (g).
12        (3) A civil action under this subsection may not be
13    brought more than 3 years after the date when the
14    retaliation occurred.
15(Source: P.A. 96-1304, eff. 7-27-10; 97-978, eff. 8-17-12.)
 
16    (740 ILCS 175/4.5 new)
17    Sec. 4.5. Actions for false claims relating to certain tax
18Acts administered by the Department of Revenue.
19    (a) The Department of Revenue has the sole authority to
20bring an administrative action resulting from information
21provided by any person alleging a false claim, statement, or
22record, as defined in Section 3, pertaining to any tax
23administered by the Department of Revenue under a provision
24identified in paragraph (5) of subsection (e) of Section 4.
25The Attorney General has the sole authority to bring a

 

 

HB3038- 19 -LRB102 10747 LNS 16076 b

1judicial action under this Act for a false claim, statement,
2or record, as defined in Section 3, pertaining to any tax
3administered by the Department of Revenue under a provision
4identified in paragraph (5) of subsection (e) of Section 4.
5    (b) A person may provide to the Department of Revenue any
6information alleging a false claim, statement, or record, as
7defined in Section 3, pertaining to any tax administered by
8the Department of Revenue under a provision identified in
9paragraph (5) of subsection (e) of Section 4. The Department
10of Revenue shall establish, by rule, a procedure for the
11reporting of any allegation of a false claim, statement, or
12record to the Department. The Department of Revenue shall
13notify the Attorney General within 60 days of receipt of a
14report under this subsection. The Department of Revenue shall
15investigate all allegations of a false claim, statement, or
16record and make a recommendation to the Attorney General as to
17whether the Attorney General should bring an action under this
18Act for all applicable tax and interest the Department of
19Revenue determines is due under the appropriate tax act. The
20Attorney General has the ultimate authority to accept or
21reject the Department of Revenue's recommendation. Nothing in
22this Section limits the authority of the Attorney General to
23bring an action under this Act at any time, even in the absence
24of a recommendation from the Department of Revenue. A person
25found liable in an action under this Act is subject to the
26assessment of penalties and damages as specified in Section 3.

 

 

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1    (c) In exercising its discretion in administering and
2enforcing the tax laws, the Department of Revenue may
3determine that a person's allegations of a false claim,
4statement, or record are best handled within the course of an
5audit conducted within the Department of Revenue's normal
6course of business. If the Department of Revenue exercises its
7audit functions and the audit results in a contested tax
8assessment, the person audited shall retain all of his or her
9legal rights to resolve the matter in any forum where
10jurisdiction is proper, including an administrative hearing
11before the Department of Revenue, the Illinois Independent Tax
12Tribunal, a circuit court under the State Officers and
13Employees Money Disposition Act, or any other judicial
14proceeding. Under no circumstances may a person, other than
15the person audited and his or her attorney, have any right to
16participate in the proceedings, participate in settlement
17negotiations, challenge the validity of any settlement between
18the Department and any person, or review any materials subject
19to the confidentiality provisions of the underlying tax law.
20If the Attorney General files an action under this Act that
21relates to or involves a false claim regarding a tax
22administered by the Department of Revenue under a provision
23identified in paragraph (5) of subsection (e) of Section 4,
24any Department of Revenue administrative proceeding that seeks
25recovery for the same conduct alleged in the Attorney
26General's complaint shall be automatically stayed until

 

 

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1resolution of the action brought by the Attorney General under
2this Act. However, a Department of Revenue audit or
3investigation may not be stayed under this subsection.
4    (d) If the Attorney General proceeds with a judicial
5action under this Act based on information brought to the
6Department of Revenue's attention by a person, the person
7shall, subject to subsection (e), receive as an award an
8amount equal to at least 15%, but not more than 30%, of the
9collected proceeds (including penalties, interest, additions
10to tax, and additional amounts) resulting from the action and
11any related actions, or from any settlement in response to the
12action, taking into account the significance of the person's
13information and the role of the person and any legal
14representative of the person in contributing to the action. If
15the Department of Revenue proceeds with an administrative
16action based on information brought to its attention by a
17person, the person shall, subject to subsection (e), receive
18as an award an amount equal to at least 10%, but not more than
1915%, of the collected proceeds (including penalties, interest,
20additions to tax, and additional amounts) resulting from the
21action or from any settlement in response to the action,
22taking into account the significance of the person's
23information and the role of the person and any legal
24representative of the person in contributing to the action. A
25person who brings to the Department's attention information
26alleging a false claim, statement, or record, as defined in

 

 

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1Section 3, pertaining to any tax administered by the
2Department of Revenue under a provision identified in
3paragraph (5) of subsection (e) of Section 4, may not receive
4any amounts for expenses, attorney's fees, or costs.
5    (e) If the judicial or administrative action described in
6subsection (d) is one that the Department of Revenue
7determines to be based principally on disclosures of specific
8allegations (other than information provided by the person
9described in subsection (d)) resulting from a judicial or
10administrative hearing, from a governmental report, hearing,
11audit, or investigation, or from the news media, the
12Department of Revenue may award to the person a sum as the
13Department of Revenue considers appropriate, but in no case
14more than 10%, if any, of the collected proceeds (including
15penalties, interest, additions to tax, and additional amounts)
16resulting from the action (including any related actions) or
17from any settlement in response to the action, taking into
18account the significance of the person's information and the
19role of the person and any legal representative of the person
20in contributing to the action. This subsection does not apply
21if the information resulting in the initiation of the
22administrative or judicial action described in subsection (d)
23was originally provided by the person described in subsection
24(d).
25    (f) If the Department of Revenue determines that a claim
26for an award under subsection (d) or (e) is brought by a person

 

 

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1who planned and initiated the actions that led to the false
2claim and any resulting underpayment of tax, the Department of
3Revenue may reduce the award to the extent it considers
4appropriate and without limitation. If the person is convicted
5of criminal conduct arising from conduct described in this
6subsection, the Department of Revenue may not pay any award to
7the person.
8    (g) A determination by the Department of Revenue regarding
9an award under this Section may be appealed exclusively to the
10Court of Claims. An appeal under this subsection must be filed
11within 30 days of the Department of Revenue's determination of
12an award under this Section.