Bill Text: MN SF281 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: False claims provisions modifications
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2013-04-11 - HF substituted on General Orders HF290 [SF281 Detail]
Download: Minnesota-2013-SF281-Engrossed.html
1.2relating to state government; modifying false claims provisions;amending
1.3Minnesota Statutes 2012, sections 15C.01; 15C.02; 15C.05; 15C.08; 15C.12;
1.415C.13; proposing coding for new law in Minnesota Statutes, chapter 15C;
1.5repealing Minnesota Statutes 2012, section 15C.14.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 15C.01, is amended to read:
1.815C.01 DEFINITIONS.
1.9 Subdivision 1. Scope. For purposes of this chapter, the terms in this section have
1.10the meanings given them.
1.11 Subd. 2. Claim. "Claim" includes a request or demand, whether under a contract or
1.12otherwise, for money or property and whether or not the state or a political subdivision has
1.13title to the money or property, that:
1.14(1) is presented to an officer, employee, or agent of the state or a political
1.15subdivision; or
1.16(2) is madeby to a contractor, grantee, or other recipient to the state or a political
1.17subdivision if the money or property is to be spent or used on behalf of the state or the
1.18political subdivision or to advance a state or political subdivision's program or interest,
1.19and if the state or political subdivision provides or has providedor will provide a portion
1.20of the money or property that is requested or demanded, or if the state or the political
1.21subdivision has reimbursed or will reimburse the contractor, grantee, or other recipient for
1.22a portion of the money or property that is requested or demanded.
1.23Claim does not include requests or demands for money or property that the state
1.24or a political subdivision has paid to an individual as compensation for state or political
2.1subdivision employment, or as an income subsidy with no restrictions on that individual's
2.2use of the money or property.
2.3 Subd. 3. Knowing and knowingly. "Knowing" and "knowingly" mean that a
2.4person, with respect to information:
2.5 (1) has actual knowledge of the information;
2.6(2) acts in deliberate ignorance of the truth or falsity of the information; or
2.7 (3) acts in reckless disregard of the truth or falsity of the information.
2.8No proof of specific intent to defraud is required, but in no case is a person who acts
2.9merely negligently, inadvertently, or mistakenly with respect to information deemed
2.10to have acted knowingly.
2.11 Subd. 3a. Material. "Material" means having a natural tendency to influence, or be
2.12capable of influencing, the payment or receipt of money or property.
2.13 Subd. 3b. Obligation. "Obligation" means an established duty, whether or not
2.14fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee
2.15relationship from a fee-based or similar relationship, from statute or regulation, or from
2.16the retention of any overpayment.
2.17 Subd. 4. Original source. "Original source" means a person whohas direct and
2.18independent knowledge of information that is probative of an essential element of the
2.19allegations in an action brought under this chapter that was not obtained from a public
2.20source and who either voluntarily provided the information to the state or the political
2.21subdivision before bringing an action based on the information or whose information
2.22provided the basis for or caused an investigation, hearing, audit, or report that led to the
2.23public disclosure of the allegations or transactions upon which an action brought under
2.24this chapter is based. either:
2.25(1) prior to a public disclosure under section 15C.05, paragraph (f), has voluntarily
2.26disclosed to the state or a political subdivision the information on which allegations or
2.27transactions in a claim are based; or
2.28(2) has knowledge that is independent of and materially adds to the publicly
2.29disclosed allegations or transactions, and has voluntarily provided the information to the
2.30state or a political subdivision before filing an action under this chapter.
2.31 Subd. 5. Person. "Person" means a natural person, partnership, corporation,
2.32association or other legal entity but does not include the state or a political subdivision.
2.33 Subd. 6. Political subdivision. "Political subdivision" means a political subdivision
2.34of the state and includes a department or agency of a political subdivision.
2.35 Subd. 7. Prosecuting attorney. "Prosecuting attorney" means:
3.1 (1) the attorney general, if the false or fraudulent claim involves money, property, or
3.2services provided by the state; or
3.3 (2) the county attorney, city attorney, or other attorney representing a political
3.4subdivision, if the false or fraudulent claim involves money, property, or services provided
3.5by the political subdivision.
3.6 Subd. 8. State. "State" means the state of Minnesota and includes a department or
3.7agency of the state.
3.8 Sec. 2. Minnesota Statutes 2012, section 15C.02, is amended to read:
3.915C.02 LIABILITY FOR CERTAIN ACTS.
3.10 (a) A person who commits any act described in clauses (1) to (7) is liable to the
3.11state or the political subdivision for a civil penalty of not less than $5,500 and not more
3.12than $11,000 per false or fraudulent claim, plus three times the amount of damages that
3.13the state or the political subdivision sustains because of the act of that person, except
3.14as otherwise provided in paragraph (b):
3.15 (1) knowingly presents, or causes to be presented,to an officer or employee of the
3.16state or a political subdivision a false or fraudulent claim for payment or approval;
3.17 (2) knowingly makes or uses, or causes to be made or used, a false record or
3.18statementto get material to a false or fraudulent claim paid or approved by the state
3.19or a political subdivision;
3.20 (3) knowingly conspires toeither present a false or fraudulent claim to the state or a
3.21political subdivision for payment or approval or makes, uses, or causes to be made or used
3.22a false record or statement to obtain payment or approval of a false or fraudulent claim
3.23 commit a violation of clause (1), (2), (4), (5), (6), or (7);
3.24 (4) has possession, custody, or control ofpublic property or money used, or to
3.25be used, by the state or a political subdivision and knowingly delivers or causes to be
3.26deliveredto the state or a political subdivision less than all of that money or property than
3.27the amount for which the person receives a receipt;
3.28 (5) is authorized toprepare make or deliver a document certifying receipt for money
3.29or property used, or to be used, by the state or a political subdivision andknowingly
3.30prepares or delivers a receipt that falsely represents the money or property, intending
3.31to defraud the state or a political subdivision, makes or delivers the receipt without
3.32completely knowing that the information on the receipt is true;
3.33 (6) knowingly buys, or receives as a pledge of an obligation or debt, public property
3.34from an officer or employee of the state or a political subdivision who lawfully may
3.35not sell or pledge the property; or
4.1 (7) knowingly makes or uses, or causes to be made or used, a false record or
4.2statement material toconceal, avoid, or decrease an obligation to pay or transmit money or
4.3property to the state or a political subdivision, or knowingly conceals or knowingly and
4.4improperly avoids or decreases an obligation to pay or transmit money or property to the
4.5state or a political subdivision.
4.6 (b) Notwithstanding paragraph (a), the court may assess not less than two times
4.7the amount of damages that the state or the political subdivision sustains because of the
4.8act of the person if:
4.9 (1) the person committing a violation under paragraph (a) furnished an officer or
4.10employee of the state or the political subdivision responsible for investigating the false or
4.11fraudulent claim violation with all information known to the person about the violation
4.12within 30 days after the date on which the person first obtained the information;
4.13 (2) the person fully cooperated with any investigation by the state or the political
4.14subdivision of the violation; and
4.15 (3) at the time the person furnished the state or the political subdivision with
4.16information about the violation, no criminal prosecution, civil action, or administrative
4.17action had been commenced under this chapter with respect to the violation and the person
4.18did not have actual knowledge of the existence of an investigation into the violation.
4.19 (c) A person violating this section is also liable to the state or the political
4.20subdivision for the costs of a civil action brought to recover any penalty or damages.
4.21(d) A person is not liable under this section for mere negligence, inadvertence, or
4.22mistake with respect to activities involving a false or fraudulent claim.
4.23(e) An employer is not liable for an act committed by a nonmanagerial employee
4.24that violates this section, unless the employer had knowledge of the act, ratified the act, or
4.25was reckless in the hiring or supervision of the employee.
4.26(f) Except in cases where proof of specific intent to defraud the state or a political
4.27subdivision is found, a person is not liable under this section if:
4.28(1) the person has been informed by the original source that single or multiple false
4.29or fraudulent claims have been made against the state or a political subdivision; and
4.30(2) the person repays the amount of actual damages to the state or the political
4.31subdivision within 45 days after being so informed. If the person has a compliance office,
4.32an original source is not considered to have informed the person of a false or fraudulent
4.33claim unless the original source reported it to the person's compliance office.
5.1 Sec. 3. Minnesota Statutes 2012, section 15C.05, is amended to read:
5.215C.05 PRIVATE REMEDIES; COMPLAINT UNDER SEAL; COPY OF
5.3COMPLAINT AND WRITTEN DISCLOSURE OF EVIDENCE TO BE SENT TO
5.4PROSECUTING ATTORNEY.
5.5 (a) Except as otherwise provided in this section, a person may maintain an action
5.6under this chapter on the person's own account and that of the stateif money, property,
5.7or services provided by the state are involved; the person's own account and that of a
5.8political subdivisionif money, property, or services provided by the political subdivision
5.9are involved; or on the person's own account and that of both the state and a political
5.10subdivisionif both are involved. After an action is commenced, it may be voluntarily
5.11dismissed only if the court and the prosecuting attorney give written consent to the
5.12dismissal and their reasons for consenting.
5.13 (b) If an action is brought under this section, no other person may bring another
5.14action under this section based on the same facts that are the subject of the pending action.
5.15 (c) An action may not be maintained under this section:
5.16(1) against the state, the legislature, the judiciary, the executive branch, or a political
5.17subdivision, or respective officers, members, or employees if the action is based on
5.18evidence or information known to the state or political subdivision when the action was
5.19brought; or
5.20 (2) if the action is based upon allegations or transactions that are the subject of a
5.21civil action or an administrative proceeding for a monetary penalty to which the state or a
5.22political subdivision is already a party; or.
5.23(3) unless the action is brought by an original source of the information or the
5.24prosecuting attorney initiates or intervenes in the action, if the action is based upon the
5.25public disclosure of allegations or transactions: (i) in a criminal, civil, or administrative
5.26hearing; (ii) in an investigation, report, hearing, or audit conducted by or at the request of
5.27the house of representatives or the senate; (iii) by an auditor or the governing body of a
5.28political subdivision; or (iv) by the news media.
5.29 (d) A complaint in an action under this section must be commenced by filing the
5.30complaint with the court in chambers and the court must place it under seal for at least 60
5.31days. No service may be made upon the defendant until the complaint is unsealed.
5.32 (e) If a complaint is filed under this section, the plaintiff shall serve a copy of the
5.33complaint on the prosecuting attorney in accordance with the Minnesota Rules of Civil
5.34Procedure and at the same time shall serve a written disclosure of all material evidence
5.35and information the plaintiff possesses.
6.1(f) A court must dismiss an action or claim under this section, unless opposed by the
6.2prosecuting attorney, if substantially the same allegations or transactions as alleged in the
6.3action or claim were publicly disclosed:
6.4(1) in a criminal, civil, or administrative hearing in which the state or the political
6.5subdivision or its agent is a party;
6.6(2) in a report, hearing, audit, or investigation of the legislature, the governing body
6.7of a political subdivision, the legislative auditor, or the state auditor; or
6.8(3) by the news media.
6.9This paragraph does not apply if the action or claim is brought by the prosecuting attorney
6.10or the person bringing the action or claim is an original source of the information.
6.11 Sec. 4. Minnesota Statutes 2012, section 15C.08, is amended to read:
6.1215C.08 PROSECUTING ATTORNEY AND PRIVATE PARTY ROLES.
6.13 (a) Except as otherwise provided by this section, if the prosecuting attorney does not
6.14intervene at the outset in an action brought by a person under section15C.05 , the person
6.15has the same rights in conducting the action as the prosecuting attorney would have. A
6.16copy of each pleading or other paper filed in the action and a copy of the transcript of each
6.17deposition taken must be mailed to the prosecuting attorney if the prosecuting attorney
6.18so requests and pays the cost of doing so.
6.19 (b) If the prosecuting attorney elects not to intervene at the outset of the action,
6.20the court, without limiting the status and rights of the person initiating the action, may
6.21nevertheless permit the prosecuting attorneymay to intervene subsequently at a later
6.22date, upontimely application and a showing of good cause shown. If the prosecuting
6.23attorney so intervenes, the prosecuting attorney subsequently has primary responsibility
6.24for conducting the action.
6.25 (c) If the prosecuting attorney elects at the outset of the action to intervene, the
6.26prosecuting attorney has the primary responsibility for prosecuting the action. The person
6.27who initially brought the action remains a party but the person's acts do not bind the
6.28prosecuting attorney.
6.29 (d) If the prosecuting attorney elects to intervene, either at the outset or subsequently,
6.30the prosecuting attorney may file the prosecuting attorney's own complaint or amend the
6.31complaint of the person who initially brought the action to clarify or add details to the
6.32claims in which the prosecuting attorney is intervening and to add any additional claims
6.33with respect to which the prosecuting attorney contends the prosecuting attorney is entitled
6.34to relief. For statute of limitations purposes, any prosecuting attorney pleading relates
6.35back to the filing date of the complaint of the person who originally brought the action, to
7.1the extent that the claim of the prosecuting attorney arises out of the conduct, transactions,
7.2or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.
7.3(d) (e) Whether or not the prosecuting attorney intervenes in the action, the
7.4prosecuting attorney may move to dismiss the action for good cause. The person who
7.5brought the action must be notified of the filing of the motion and may oppose it and
7.6present evidence at the hearing. The prosecuting attorney may also settle the action. If
7.7the prosecuting attorney intends to settle the action, the prosecuting attorney shall notify
7.8the person who brought the action. The state or the political subdivision may settle the
7.9action with the defendant notwithstanding the objections of the person initiating the action
7.10if the court determines, after a hearing, that the proposed settlement is fair, adequate,
7.11and reasonable under all the circumstances. Upon a showing of good cause, the hearing
7.12may be held in chambers.
7.13 Sec. 5. Minnesota Statutes 2012, section 15C.12, is amended to read:
7.1415C.12 AWARD OF EXPENSES AND ATTORNEY FEES.
7.15 If the prosecuting attorney or a person who brought an action under section15C.05
7.16prevails in or settles an action under this chapter, the court may authorize shall award the
7.17prosecuting attorney or personto recover reasonable costs, reasonable attorney fees, and
7.18the reasonable fees of expert consultants and expert witnesses. These expenses must
7.19be awarded against the defendant and are not allowed against the state or a political
7.20subdivision. If the prosecuting attorney does not intervene in the action and the person
7.21bringing the action conducts the action and the defendant prevails in the action, the court
7.22shall award to the defendant reasonable expenses and attorney fees against the person
7.23bringing the action if it finds that the action was clearly frivolous or vexatious or brought
7.24in substantial part for harassment. The state or a political subdivision is not liable for
7.25expenses, attorney fees, or other costs incurred by a person in bringing or defending an
7.26action under this chapter.
7.27 Sec. 6. Minnesota Statutes 2012, section 15C.13, is amended to read:
7.2815C.13 DISTRIBUTION TO PRIVATE PLAINTIFF IN CERTAIN ACTIONS.
7.29 If the prosecuting attorney intervenes at the outset in an action brought by a person
7.30under section15C.05 , the person is entitled to receive not less than 15 percent or more than
7.3125 percent of any recoveryin proportion to the person's contribution of the civil penalty
7.32and damages or settlement, depending on the extent to which the person substantially
7.33contributed to the conduct of the action. If the prosecuting attorney does not intervene in
7.34the action at any time, the person is entitled to receive not less than 25 percent or more
8.1than 30 percent of any recovery of the civil penalty and damages, or settlement, as the
8.2court determines is reasonable. If the prosecuting attorney does not intervene in the action
8.3at the outset but subsequently intervenes, the person is entitled to receive not less than
8.415 percent or more than 30 percent of any recovery of the civil penalty and damages or
8.5settlement, as the court determinesis reasonable based on the person's participation in the
8.6action before the prosecuting attorney intervened, depending on the extent to which the
8.7person substantially contributed to the prosecution of the action. For recoveries whose
8.8distribution is governed by federal code or rule, the basis for calculating the portion of
8.9the recovery the person is entitled to receive shall not include amounts reserved for
8.10distribution to the federal government or designated in their use by federal code or rule.
8.11 Sec. 7. [15C.145] RELIEF FROM RETALIATORY ACTIONS.
8.12(a) An employee, contractor, or agent is entitled to all relief necessary to make that
8.13employee, contractor, or agent whole if that employee, contractor, or agent is discharged,
8.14demoted, suspended, threatened, harassed, or in any other manner discriminated against in
8.15the terms and conditions of employment because of lawful acts done by the employee,
8.16contractor, agent, or associated others in furtherance of an action under this chapter or
8.17other efforts to stop one or more violations of this chapter.
8.18(b) Relief under paragraph (a) shall include reinstatement with the same seniority
8.19status that the employee, contractor, or agent would have had but for the discrimination,
8.20two times the amount of back pay, interest on the back pay, and compensation for any
8.21special damages sustained as a result of the discrimination, including litigation costs and
8.22reasonable attorney fees.
8.23(c) A civil action under this section may not be brought more than three years after
8.24the date when the retaliation occurred.
8.25 Sec. 8. REPEALER.
8.26Minnesota Statutes 2012, section 15C.14, is repealed.
1.3Minnesota Statutes 2012, sections 15C.01; 15C.02; 15C.05; 15C.08; 15C.12;
1.415C.13; proposing coding for new law in Minnesota Statutes, chapter 15C;
1.5repealing Minnesota Statutes 2012, section 15C.14.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 15C.01, is amended to read:
1.815C.01 DEFINITIONS.
1.9 Subdivision 1. Scope. For purposes of this chapter, the terms in this section have
1.10the meanings given them.
1.11 Subd. 2. Claim. "Claim" includes a request or demand, whether under a contract or
1.12otherwise, for money or property and whether or not the state or a political subdivision has
1.13title to the money or property, that:
1.14(1) is presented to an officer, employee, or agent of the state or a political
1.15subdivision; or
1.16(2) is made
1.17
1.18political subdivision or to advance a state or political subdivision's program or interest,
1.19and if the state or political subdivision provides or has provided
1.20of the money or property that is requested or demanded, or if the state or the political
1.21subdivision has reimbursed or will reimburse the contractor, grantee, or other recipient for
1.22a portion of the money or property that is requested or demanded.
1.23Claim does not include requests or demands for money or property that the state
1.24or a political subdivision has paid to an individual as compensation for state or political
2.1subdivision employment, or as an income subsidy with no restrictions on that individual's
2.2use of the money or property.
2.3 Subd. 3. Knowing and knowingly. "Knowing" and "knowingly" mean that a
2.4person, with respect to information:
2.5 (1) has actual knowledge of the information;
2.6(2) acts in deliberate ignorance of the truth or falsity of the information; or
2.7 (3) acts in reckless disregard of the truth or falsity of the information.
2.8No proof of specific intent to defraud is required, but in no case is a person who acts
2.9merely negligently, inadvertently, or mistakenly with respect to information deemed
2.10to have acted knowingly.
2.11 Subd. 3a. Material. "Material" means having a natural tendency to influence, or be
2.12capable of influencing, the payment or receipt of money or property.
2.13 Subd. 3b. Obligation. "Obligation" means an established duty, whether or not
2.14fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee
2.15relationship from a fee-based or similar relationship, from statute or regulation, or from
2.16the retention of any overpayment.
2.17 Subd. 4. Original source. "Original source" means a person who
2.18
2.19
2.20
2.21
2.22
2.23
2.24
2.25(1) prior to a public disclosure under section 15C.05, paragraph (f), has voluntarily
2.26disclosed to the state or a political subdivision the information on which allegations or
2.27transactions in a claim are based; or
2.28(2) has knowledge that is independent of and materially adds to the publicly
2.29disclosed allegations or transactions, and has voluntarily provided the information to the
2.30state or a political subdivision before filing an action under this chapter.
2.31 Subd. 5. Person. "Person" means a natural person, partnership, corporation,
2.32association or other legal entity but does not include the state or a political subdivision.
2.33 Subd. 6. Political subdivision. "Political subdivision" means a political subdivision
2.34of the state and includes a department or agency of a political subdivision.
2.35 Subd. 7. Prosecuting attorney. "Prosecuting attorney" means:
3.1 (1) the attorney general, if the false or fraudulent claim involves money, property, or
3.2services provided by the state; or
3.3 (2) the county attorney, city attorney, or other attorney representing a political
3.4subdivision, if the false or fraudulent claim involves money, property, or services provided
3.5by the political subdivision.
3.6 Subd. 8. State. "State" means the state of Minnesota and includes a department or
3.7agency of the state.
3.8 Sec. 2. Minnesota Statutes 2012, section 15C.02, is amended to read:
3.915C.02 LIABILITY FOR CERTAIN ACTS.
3.10 (a) A person who commits any act described in clauses (1) to (7) is liable to the
3.11state or the political subdivision for a civil penalty of not less than $5,500 and not more
3.12than $11,000 per false or fraudulent claim, plus three times the amount of damages that
3.13the state or the political subdivision sustains because of the act of that person, except
3.14as otherwise provided in paragraph (b):
3.15 (1) knowingly presents, or causes to be presented,
3.16
3.17 (2) knowingly makes or uses, or causes to be made or used, a false record or
3.18statement
3.19
3.20 (3) knowingly conspires to
3.21
3.22
3.23 commit a violation of clause (1), (2), (4), (5), (6), or (7);
3.24 (4) has possession, custody, or control of
3.25be used, by the state or a political subdivision and knowingly delivers or causes to be
3.26delivered
3.27
3.28 (5) is authorized to
3.29or property used, or to be used, by the state or a political subdivision and
3.30
3.31to defraud the state or a political subdivision, makes or delivers the receipt without
3.32completely knowing that the information on the receipt is true;
3.33 (6) knowingly buys, or receives as a pledge of an obligation or debt, public property
3.34from an officer or employee of the state or a political subdivision who lawfully may
3.35not sell or pledge the property; or
4.1 (7) knowingly makes or uses, or causes to be made or used, a false record or
4.2statement material to
4.3property to the state or a political subdivision, or knowingly conceals or knowingly and
4.4improperly avoids or decreases an obligation to pay or transmit money or property to the
4.5state or a political subdivision.
4.6 (b) Notwithstanding paragraph (a), the court may assess not less than two times
4.7the amount of damages that the state or the political subdivision sustains because of the
4.8act of the person if:
4.9 (1) the person committing a violation under paragraph (a) furnished an officer or
4.10employee of the state or the political subdivision responsible for investigating the false or
4.11fraudulent claim violation with all information known to the person about the violation
4.12within 30 days after the date on which the person first obtained the information;
4.13 (2) the person fully cooperated with any investigation by the state or the political
4.14subdivision of the violation; and
4.15 (3) at the time the person furnished the state or the political subdivision with
4.16information about the violation, no criminal prosecution, civil action, or administrative
4.17action had been commenced under this chapter with respect to the violation and the person
4.18did not have actual knowledge of the existence of an investigation into the violation.
4.19 (c) A person violating this section is also liable to the state or the political
4.20subdivision for the costs of a civil action brought to recover any penalty or damages.
4.21(d) A person is not liable under this section for mere negligence, inadvertence, or
4.22mistake with respect to activities involving a false or fraudulent claim.
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
4.32
4.33
5.1 Sec. 3. Minnesota Statutes 2012, section 15C.05, is amended to read:
5.215C.05 PRIVATE REMEDIES; COMPLAINT UNDER SEAL; COPY OF
5.3COMPLAINT AND WRITTEN DISCLOSURE OF EVIDENCE TO BE SENT TO
5.4PROSECUTING ATTORNEY.
5.5 (a) Except as otherwise provided in this section, a person may maintain an action
5.6under this chapter on the person's own account and that of the state
5.7
5.8political subdivision
5.9
5.10subdivision
5.11dismissed only if the court and the prosecuting attorney give written consent to the
5.12dismissal and their reasons for consenting.
5.13 (b) If an action is brought under this section, no other person may bring another
5.14action under this section based on the same facts that are the subject of the pending action.
5.15 (c) An action may not be maintained under this section:
5.16(1) against the state, the legislature, the judiciary, the executive branch, or a political
5.17subdivision, or respective officers, members, or employees if the action is based on
5.18evidence or information known to the state or political subdivision when the action was
5.19brought; or
5.20 (2) if the action is based upon allegations or transactions that are the subject of a
5.21civil action or an administrative proceeding for a monetary penalty to which the state or a
5.22political subdivision is already a party
5.23
5.24
5.25
5.26
5.27
5.28
5.29 (d) A complaint in an action under this section must be commenced by filing the
5.30complaint with the court in chambers and the court must place it under seal for at least 60
5.31days. No service may be made upon the defendant until the complaint is unsealed.
5.32 (e) If a complaint is filed under this section, the plaintiff shall serve a copy of the
5.33complaint on the prosecuting attorney in accordance with the Minnesota Rules of Civil
5.34Procedure and at the same time shall serve a written disclosure of all material evidence
5.35and information the plaintiff possesses.
6.1(f) A court must dismiss an action or claim under this section, unless opposed by the
6.2prosecuting attorney, if substantially the same allegations or transactions as alleged in the
6.3action or claim were publicly disclosed:
6.4(1) in a criminal, civil, or administrative hearing in which the state or the political
6.5subdivision or its agent is a party;
6.6(2) in a report, hearing, audit, or investigation of the legislature, the governing body
6.7of a political subdivision, the legislative auditor, or the state auditor; or
6.8(3) by the news media.
6.9This paragraph does not apply if the action or claim is brought by the prosecuting attorney
6.10or the person bringing the action or claim is an original source of the information.
6.11 Sec. 4. Minnesota Statutes 2012, section 15C.08, is amended to read:
6.1215C.08 PROSECUTING ATTORNEY AND PRIVATE PARTY ROLES.
6.13 (a) Except as otherwise provided by this section, if the prosecuting attorney does not
6.14intervene at the outset in an action brought by a person under section
6.15has the same rights in conducting the action as the prosecuting attorney would have. A
6.16copy of each pleading or other paper filed in the action and a copy of the transcript of each
6.17deposition taken must be mailed to the prosecuting attorney if the prosecuting attorney
6.18so requests and pays the cost of doing so.
6.19 (b) If the prosecuting attorney elects not to intervene at the outset of the action,
6.20the court, without limiting the status and rights of the person initiating the action, may
6.21nevertheless permit the prosecuting attorney
6.22date, upon
6.23attorney so intervenes, the prosecuting attorney subsequently has primary responsibility
6.24for conducting the action.
6.25 (c) If the prosecuting attorney elects at the outset of the action to intervene, the
6.26prosecuting attorney has the primary responsibility for prosecuting the action. The person
6.27who initially brought the action remains a party but the person's acts do not bind the
6.28prosecuting attorney.
6.29 (d) If the prosecuting attorney elects to intervene, either at the outset or subsequently,
6.30the prosecuting attorney may file the prosecuting attorney's own complaint or amend the
6.31complaint of the person who initially brought the action to clarify or add details to the
6.32claims in which the prosecuting attorney is intervening and to add any additional claims
6.33with respect to which the prosecuting attorney contends the prosecuting attorney is entitled
6.34to relief. For statute of limitations purposes, any prosecuting attorney pleading relates
6.35back to the filing date of the complaint of the person who originally brought the action, to
7.1the extent that the claim of the prosecuting attorney arises out of the conduct, transactions,
7.2or occurrences set forth, or attempted to be set forth, in the prior complaint of that person.
7.3
7.4prosecuting attorney may move to dismiss the action for good cause. The person who
7.5brought the action must be notified of the filing of the motion and may oppose it and
7.6present evidence at the hearing. The prosecuting attorney may also settle the action. If
7.7the prosecuting attorney intends to settle the action, the prosecuting attorney shall notify
7.8the person who brought the action. The state or the political subdivision may settle the
7.9action with the defendant notwithstanding the objections of the person initiating the action
7.10if the court determines, after a hearing, that the proposed settlement is fair, adequate,
7.11and reasonable under all the circumstances. Upon a showing of good cause, the hearing
7.12may be held in chambers.
7.13 Sec. 5. Minnesota Statutes 2012, section 15C.12, is amended to read:
7.1415C.12 AWARD OF EXPENSES AND ATTORNEY FEES.
7.15 If the prosecuting attorney or a person who brought an action under section
7.17prosecuting attorney or person
7.18the reasonable fees of expert consultants and expert witnesses. These expenses must
7.19be awarded against the defendant and are not allowed against the state or a political
7.20subdivision. If the prosecuting attorney does not intervene in the action and the person
7.21bringing the action conducts the action and the defendant prevails in the action, the court
7.22shall award to the defendant reasonable expenses and attorney fees against the person
7.23bringing the action if it finds that the action was clearly frivolous or vexatious or brought
7.24in substantial part for harassment. The state or a political subdivision is not liable for
7.25expenses, attorney fees, or other costs incurred by a person in bringing or defending an
7.26action under this chapter.
7.27 Sec. 6. Minnesota Statutes 2012, section 15C.13, is amended to read:
7.2815C.13 DISTRIBUTION TO PRIVATE PLAINTIFF IN CERTAIN ACTIONS.
7.29 If the prosecuting attorney intervenes at the outset in an action brought by a person
7.30under section
7.3125 percent of any recovery
7.32and damages or settlement, depending on the extent to which the person substantially
7.33contributed to the conduct of the action. If the prosecuting attorney does not intervene in
7.34the action at any time, the person is entitled to receive not less than 25 percent or more
8.1than 30 percent of any recovery of the civil penalty and damages, or settlement, as the
8.2court determines is reasonable. If the prosecuting attorney does not intervene in the action
8.3at the outset but subsequently intervenes, the person is entitled to receive not less than
8.415 percent or more than 30 percent of any recovery of the civil penalty and damages or
8.5settlement, as the court determines
8.6
8.7person substantially contributed to the prosecution of the action. For recoveries whose
8.8distribution is governed by federal code or rule, the basis for calculating the portion of
8.9the recovery the person is entitled to receive shall not include amounts reserved for
8.10distribution to the federal government or designated in their use by federal code or rule.
8.11 Sec. 7. [15C.145] RELIEF FROM RETALIATORY ACTIONS.
8.12(a) An employee, contractor, or agent is entitled to all relief necessary to make that
8.13employee, contractor, or agent whole if that employee, contractor, or agent is discharged,
8.14demoted, suspended, threatened, harassed, or in any other manner discriminated against in
8.15the terms and conditions of employment because of lawful acts done by the employee,
8.16contractor, agent, or associated others in furtherance of an action under this chapter or
8.17other efforts to stop one or more violations of this chapter.
8.18(b) Relief under paragraph (a) shall include reinstatement with the same seniority
8.19status that the employee, contractor, or agent would have had but for the discrimination,
8.20two times the amount of back pay, interest on the back pay, and compensation for any
8.21special damages sustained as a result of the discrimination, including litigation costs and
8.22reasonable attorney fees.
8.23(c) A civil action under this section may not be brought more than three years after
8.24the date when the retaliation occurred.
8.25 Sec. 8. REPEALER.
8.26Minnesota Statutes 2012, section 15C.14, is repealed.
