Bill Text: IL SB1577 | 2017-2018 | 100th General Assembly | Chaptered

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Bill Title: Amends the Illinois False Claims Act. Provides that a person who commits certain acts is liable to the State for a civil penalty of not less than the minimum amount and not more than the maximum amount allowed for a civil penalty for a violation of the federal False Claims Act (31 U.S.C. 3729 et seq.) as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461) (instead of a penalty of not less than $5,500 and not more than $11,000). Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 10-2)

Status: (Passed) 2017-08-25 - Public Act . . . . . . . . . 100-0452 [SB1577 Detail]

Download: Illinois-2017-SB1577-Chaptered.html

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Public Act 100-0452
SB1577 Enrolled LRB100 06362 HEP 16401 b
AN ACT concerning civil law.
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 3 as follows:
(740 ILCS 175/3) (from Ch. 127, par. 4103)
Sec. 3. False claims.
(a) Liability for certain acts.
(1) In general, any person who:
(A) knowingly presents, or causes to be presented,
a false or fraudulent claim for payment or approval;
(B) knowingly makes, uses, or causes to be made or
used, a false record or statement material to a false
or fraudulent claim;
(C) conspires to commit a violation of
subparagraph (A), (B), (D), (E), (F), or (G);
(D) has possession, custody, or control of
property or money used, or to be used, by the State and
knowingly delivers, or causes to be delivered, less
than all the money or property;
(E) is authorized to make or deliver a document
certifying receipt of property used, or to be used, by
the State and, intending to defraud the State, makes or

delivers the receipt without completely knowing that
the information on the receipt is true;
(F) knowingly buys, or receives as a pledge of an
obligation or debt, public property from an officer or
employee of the State, or a member of the Guard, who
lawfully may not sell or pledge property; or
(G) knowingly makes, uses, or causes to be made or
used, a false record or statement material to an
obligation to pay or transmit money or property to the
State, or knowingly conceals or knowingly and
improperly avoids or decreases an obligation to pay or
transmit money or property to the State,
is liable to the State for a civil penalty of not less than
the minimum amount and not more than the maximum amount
allowed for a civil penalty for a violation of the federal
False Claims Act (31 U.S.C. 3729 et seq.) as adjusted by
the Federal Civil Penalties Inflation Adjustment Act of
1990 (28 U.S.C. 2461) $5,500 and not more than $11,000,
plus 3 times the amount of damages which the State sustains
because of the act of that person. Notwithstanding any
other provision, a person is liable to the State for a
civil penalty of not less than $5,500 and not more than
$11,000, plus 3 times the amount of damages which the State
sustains because of the act of that person, when: (i) the
civil action was brought by a private person pursuant to
paragraph (1) of subsection (b) of Section 4; (ii) the

State did not elect to intervene pursuant to paragraph (2)
of subsection (b) of Section 4; (iii) the actual amount of
the tax owed to the State is equal to or less than $50,000,
which does not include interest, penalties, attorney's
fees, costs, or any other amounts owed or paid pursuant to
this Act; and (iv) the violation of this Act relates to or
involves a false claim regarding a tax administered by the
Department of Revenue, excluding claims, records, or
statements made under the Property Tax Code. The penalties
in this Section are intended to be remedial rather than
punitive, and shall not preclude, nor be precluded by, a
criminal prosecution for the same conduct.
(2) A person violating this subsection shall also be
liable to the State for the costs of a civil action brought
to recover any such penalty or damages.
(b) Definitions. For purposes of this Section:
(1) The terms "knowing" and "knowingly":
(A) mean that a person, with respect to
information:
(i) has actual knowledge of the information;
(ii) acts in deliberate ignorance of the truth
or falsity of the information; or
(iii) acts in reckless disregard of the truth
or falsity of the information, and
(B) require no proof of specific intent to defraud.
(2) The term "claim":

(A) means any request or demand, whether under a
contract or otherwise, for money or property and
whether or not the State has title to the money or
property, that
(i) is presented to an officer, employee, or
agent of the State; or
(ii) is made to a contractor, grantee, or other
recipient, if the money or property is to be spent
or used on the State's behalf or to advance a State
program or interest, and if the State:
(I) provides or has provided any portion
of the money or property requested or demanded;
or
(II) will reimburse such contractor,
grantee, or other recipient for any portion of
the money or property which is requested or
demanded; and
(B) does not include requests or demands for money
or property that the State has paid to an individual as
compensation for State employment or as an income
subsidy with no restrictions on that individual's use
of the money or property.
(3) The term "obligation" means an established duty,
whether or not fixed, arising from an express or implied
contractual, grantor-grantee, or licensor-licensee
relationship, from a fee-based or similar relationship,

from statute or regulation, or from the retention of any
overpayment.
(4) The term "material" means having a natural tendency
to influence, or be capable of influencing, the payment or
receipt of money or property.
(c) Exclusion. This Section does not apply to claims,
records, or statements made under the Illinois Income Tax Act.
(Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10.)
Section 99. Effective date. This Act takes effect upon
becoming law.