Bill Text: MS HB1066 | 2024 | Regular Session | Comm Sub
Bill Title: MS Whistleblower Reward Act; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-14 - Died On Calendar [HB1066 Detail]
Download: Mississippi-2024-HB1066-Comm_Sub.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Accountability, Efficiency, Transparency
By: Representative Ford (54th)
House Bill 1066
(COMMITTEE SUBSTITUTE)
AN ACT TO CREATE THE MISSISSIPPI WHISTLEBLOWER REWARD ACT; TO PROVIDE FOR DEFINITIONS; TO PROVIDE THAT WHEN A WHISTLEBLOWER PROVIDES ORIGINAL INFORMATION AND SUBSTANTIAL EVIDENCE OF THE THEFT OR MISUSE OF GOVERNMENT FUNDS OR PROPERTY TO THE DEPARTMENT, AND THAT EVIDENCE LEADS TO THE SUCCESSFUL RECOVERY OF FUNDS BY THE DEPARTMENT, THEN THE STATE OF MISSISSIPPI, THROUGH THE DEPARTMENT OF AUDIT, SHALL PAY SUCH WHISTLEBLOWER FIFTEEN PERCENT OF THE PROCEEDS OF THE RECOVERY; TO PROVIDE THAT SUCH AMOUNT OF THE PROCEEDS PAID TO THE WHISTLEBLOWER SHALL NOT EXCEED TWO HUNDRED FIFTY THOUSAND DOLLARS; TO PROVIDE HOW THE POTENTIAL REWARD SHALL BE RECOVERED; TO PROVIDE THAT ADDITIONALLY, THE COST INCURRED BY THE DEPARTMENT WITH ANY VENDOR WHOSE SERVICES WERE DEEMED NECESSARY BY THE DEPARTMENT TO FULLY INVESTIGATE SHALL ALSO BE RECOVERED; TO PROVIDE THAT THE IDENTITY OF THE WHISTLEBLOWER SHALL REMAIN CONFIDENTIAL EXCEPT IN CERTAIN SITUATIONS; TO PROVIDE THAT COMMUNICATIONS BETWEEN THE DEPARTMENT OF AUDIT AND THE WHISTLEBLOWER SHALL BE EXEMPT FROM THE MISSISSIPPI PUBLIC RECORDS ACT; TO AMEND SECTION 25-61-12, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) This section shall be known and may be cited as the "Mississippi Whistleblower Reward Act".
(2) As used in this section, the following words shall have the meaning as defined in this section, unless the context clearly indicates otherwise:
(a) "Original information" means allegations not previously known by the Department of Audit and unlikely to have been discovered otherwise.
(b) "Substantial evidence" means personal knowledge and documentation beyond a mere allegation.
(c) "Successful recovery of funds" means an action taken by the Department of Audit which leads to the recovery of public funds.
(d) "Department" means the Mississippi Department of Audit.
(e) "Whistleblower" means one (1) person or one or more persons together who:
(i) Provides original information and substantial evidence that leads to a successful recovery of funds;
(ii) Cooperates continuously according to policies promulgated by the Department of Audit;
(iii) Has not knowingly participated in the fraud;
(iv) Is not an employee of the Department of Audit at the time the fraud was discovered or reported; and
(v) Is not the elected official or supervisor in charge of the department where the fraud is discovered. State, county and municipal officials shall not be included in the definition of "whistleblower".
(3) (a) When a whistleblower provides original information and substantial evidence of the theft or misuse of government funds or property to the department, and that evidence leads to the successful recovery of funds by the department, then the State of Mississippi, through the Department of Audit, shall pay such whistleblower fifteen percent (15%) of the proceeds of the recovery; however, such recovery shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00).
(b) If two or more persons together act as whistleblowers, the fifteen percent (15%) reward shall be disbursed in equal, pro rata shares. In no event shall the reward paid to any such person or group of persons in relation to any recovery exceed fifteen percent (15%) of the proceeds or Two Hundred Fifty Thousand Dollars ($250,000.00) of such
recovery.
(c) The reward shall be recovered in the following manner:
(i) From the person or persons liable for such amounts and upon the surety on official bond thereof, and/or
(ii) From any individual, partnership, corporation or association to whom the illegal expenditure was made or with whom the unlawful disposition of public property was made, if such individual, partnership, corporation or association knew or had reason to know through the exercising of reasonable diligence that the expenditure was illegal or the disposition unlawful, as provided in Section 7-7-211(g).
(d) Additionally, there shall be recovered in all cases, in the same manner, from the parties listed above, the cost incurred by the department with any vendor whose services were deemed necessary by the department to fully investigate any theft or misuse of government funds or property, regardless of
whether a reward is payable to a whistleblower.
(e) If, after an investigation by the department, the entity against which the theft or misuse of government funds or property was committed is repaid directly by the employee, surety bond, insurance policy, or other payor, that entity shall return fifteen percent (15%) of the funds, which shall not be more than Two Hundred Fifty Thousand Dollars ($250,000.00), to the Mississippi Department of Audit Exception Clearing Account, the whistleblower shall be paid from such account.
(4) (a) The identity of a whistleblower shall remain confidential and not admissible in a court of law, unless:
(i) A judge determines after an in-camera review that such information is necessary for a criminal defendant to receive a fair trial;
(ii) A judge determines such information contains evidence that is exculpatory to a criminal defendant; or
(iii) The state or federal constitution requires the disclosure of the whistleblower's identity.
(b) Communications between the department and a whistleblower, including documents or tangible items provided or exchanged, are exempt confidential investigative reports for purposes of the Mississippi Public Records Act.
(5) This section shall only apply to whistleblowers who submit evidence to the department after the effective date of this act. The section shall not retroactively apply to whistleblower
information received before the effective date.
SECTION 2. Section 25-61-12, Mississippi Code of 1972, is amended as follows:
25-61-12. (1) The home address, any telephone number of a privately paid account or other private information of any law enforcement officer, criminal investigator, judge or district attorney, or the spouse or child of the law enforcement officer, criminal investigator, judge or district attorney, shall be exempt from the Mississippi Public Records Act of 1983. This exemption does not apply to any court transcript or recording if given under oath and not otherwise excluded by law.
(2) (a) When in the possession of a law enforcement agency, investigative reports shall be exempt from the provisions of this chapter; however, a law enforcement agency, in its discretion, may choose to make public all or any part of any investigative report.
(b) Nothing in this chapter shall be construed to prevent any and all public bodies from having among themselves a free flow of information for the purpose of achieving a coordinated and effective detection and investigation of unlawful activity. Where the confidentiality of records covered by this section is being determined in a private hearing before a judge under Section 25-61-13, the public body may redact or separate from the records the identity of confidential informants or the identity of the person or persons under investigation or other information other than the nature of the incident, time, date and location.
(c) Nothing in this chapter shall be construed to exempt from public disclosure a law enforcement incident report. An incident report shall be a public record. A law enforcement agency may release information in addition to the information contained in the incident report.
(d) Nothing in this chapter shall be construed to require the disclosure of information that would reveal the identity of the victim.
(3) Personal information of victims, including victim impact statements and letters of support on behalf of victims that are contained in records on file with the Mississippi Department of Corrections and State Parole Board, shall be exempt from the provisions of this chapter.
(4) Records of a public hospital board relating to the purchase or sale of medical or other practices or other business operations, and the recruitment of physicians and other health care professionals, shall be exempt from the provisions of this chapter.
(5) Communications between the Department of Audit and a whistleblower, including documents or tangible items provided or exchanged, shall be exempt from the provisions of this chapter.
SECTION 3. This act shall take effect and be in force from and after July 1, 2024.
