REPORT TITLE:
False Claims Act

DESCRIPTION:
Establishes a False Claims Act allowing citizens to sue as qui
tam plaintiffs for false claims against the government; provides
for treble damages.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2115
TWENTIETH LEGISLATURE, 2000                                S.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     A BILL FOR AN ACT
RELATING TO FALSE CLAIMS.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The Hawaii Revised Statutes is amended by adding
 
 2 a new chapter to be appropriately designated and to read as
 
 3 follows:
 
 4                           "CHAPTER  
 
 5                FALSE CLAIMS AGAINST THE GOVERNMENT
 
 6      §   -1  Short title; definitions.  (a)  This chapter shall
 
 7 be known and may be cited as the False Claims Act.
 
 8      (b)  For purposes of this chapter:
 
 9      "Claim" includes any request or demand for money, property,
 
10 or services made to any employee, officer, or agent of the State
 
11 or of any political subdivision, or to any contractor, grantee,
 
12 or other recipient, whether under contract or not, if any portion
 
13 of the money, property, or services requested or demanded issued
 
14 from, or was provided by, the State (hereinafter "state funds")
 
15 or by any of its political subdivisions (hereinafter "political
 
16 subdivision funds").
 
17      "Knowing" and "knowingly" means that a person, with respect
 
18 to information:
 
19      (1)  Has actual knowledge of the information;
 
20      (2)  Acts in deliberate ignorance of the truth or falsity of
 
21           the information; or
 

 
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 1      (3)  Acts in reckless disregard of the truth or falsity of
 
 2           the information.
 
 3      "Political subdivision" includes any city, city and county,
 
 4 or county, except the county of Kalawao.
 
 5      "Prosecuting authority" refers to the county counsel or
 
 6 corporation counsel.
 
 7      "Person" includes any natural person, corporation, firm,
 
 8 association, organization, partnership, limited liability
 
 9 company, business, or trust.
 
10      §   -2 False claims against the government; actionable.
 
11 (a)  A person who:
 
12      (1)  Knowingly presents or causes to be presented to an
 
13           officer or employee of the State or of any political
 
14           subdivision, a false claim for payment or approval;
 
15      (2)  Knowingly makes, uses, or causes to be made or used a
 
16           false record or statement to get a false claim paid or
 
17           approved by the State or by any political subdivision;
 
18      (3)  Conspires to defraud the State or any political
 
19           subdivision by getting a false claim allowed or paid by
 
20           the State or by any political subdivision;
 
21      (4)  Has possession, custody, or control of public property
 
22           or money used or to be used by the State or by any
 
23           political subdivision and knowingly delivers or causes
 

 
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 1           to be delivered less property than the amount for which
 
 2           the person receives a certificate or receipt;
 
 3      (5)  Is authorized to make or deliver a document certifying
 
 4           receipt of property used or to be used by the State or
 
 5           by any political subdivision and knowingly makes or
 
 6           delivers a receipt that falsely represents the property
 
 7           used or to be used;
 
 8      (6)  Knowingly buys, or receives as a pledge, an obligation,
 
 9           debt, or public property from any person who is not
 
10           lawfully authorized to sell or pledge the obligation,
 
11           debt, or property;
 
12      (7)  Knowingly makes, uses, or causes to be made or used, a
 
13           false record or statement to conceal, avoid, or
 
14           decrease an obligation to pay or transmit money or
 
15           property to the State or to any political subdivision;
 
16           or
 
17      (8)  Is a beneficiary of an inadvertent submission of a
 
18           false claim to the State or a political subdivision,
 
19           who subsequently discovers the falsity of the claim,
 
20           and fails to disclose the false claim to the State or
 
21           the political subdivision within a reasonable time
 
22           after discovery of the false claim;
 
23 shall be liable to the State or political subdivision for three
 

 
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 1 times the amount of damages which the State or political
 
 2 subdivision sustains due to the act committed by that person and
 
 3 the costs of a civil action brought to recover any of those
 
 4 penalties or damages.  The person also may be liable to the State
 
 5 or political subdivision for a civil penalty of up to $10,000 for
 
 6 each false claim.
 
 7      (b)  Notwithstanding subsection (a), the court may assess
 
 8 not less than two times and not more than three times the amount
 
 9 of damages which the State or the political subdivision sustains
 
10 due to an act described in subsection (a) that is committed by a
 
11 person, and no civil penalty, if the court finds all of the
 
12 following:
 
13      (1)  The person committing the violation furnished state or
 
14           political subdivision officials responsible for
 
15           investigating false claims violations with all
 
16           information known to that person about the violation
 
17           within thirty days after the date on which the person
 
18           first obtained the information;
 
19      (2)  The person fully cooperated with any investigation by
 
20           the State or a political subdivision of the violation;
 
21           and
 
22      (3)  At the time the person furnished the State or the
 
23           political subdivision with information about the
 

 
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 1           violation, no criminal prosecution, civil action, or
 
 2           administrative action had commenced with respect to the
 
 3           violation, and the person did not have actual knowledge
 
 4           of the existence of an investigation into the
 
 5           violation.
 
 6      (c)  Liability under this section shall be joint and several
 
 7 for any act committed by two or more persons.
 
 8      (d)  This section shall not apply to any controversy
 
 9 involving an amount of less than $500 in value.  For purposes of
 
10 this subsection, "controversy" means any one or more false claims
 
11 submitted by the same person in violation of this chapter.  Proof
 
12 of specific intent to defraud is not required.
 
13      (e)  This section shall not apply to claims, records, or
 
14 statements for which procedures and remedies are otherwise
 
15 specifically provided for under chapter 231.
 
16      §   -3  Actions initiated by the attorney general.  (a)  The
 
17 attorney general shall diligently investigate violations under
 
18 section    -2 involving state funds.  If the attorney general
 
19 finds that a person has violated or is violating section    -2,
 
20 the attorney general may bring a civil action under this section
 
21 against that person.
 
22      (b)  If the attorney general brings a civil action under
 
23 this section on a claim involving political subdivision funds as
 

 
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 1 well as state funds, the attorney general, on the same date that
 
 2 the complaint is filed in that action, shall serve by mail with
 
 3 "return receipt requested", a copy of the complaint on the
 
 4 appropriate prosecuting authority.
 
 5      (c)  The prosecuting authority may intervene in an action
 
 6 brought by the attorney general under this section within sixty
 
 7 days after receipt of the complaint pursuant to subsection (b).
 
 8      §   -4  Actions initiated by a prosecuting authority.  (a)
 
 9 The prosecuting authority of a political subdivision shall
 
10 diligently investigate violations under section    -2 involving
 
11 political subdivision funds.  If the prosecuting authority finds
 
12 that a person has violated or is violating section    -2, the
 
13 prosecuting authority may bring a civil action under this section
 
14 against that person.  If the prosecuting authority brings a civil
 
15 action under this section on a claim involving state funds as
 
16 well as political subdivision funds, the prosecuting authority,
 
17 on the same date that the complaint is filed in that action,
 
18 shall serve by mail with "return receipt requested" a copy of the
 
19 complaint on the attorney general.
 
20      (b)  Within sixty days after receiving the complaint
 
21 pursuant to this section from the prosecuting authority, the
 
22 attorney general shall intervene in the action and do either of
 
23 the following:
 

 
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 1      (1)  Notify the court that it intends to proceed with the
 
 2           action, in which case the attorney general shall assume
 
 3           primary responsibility for conducting the action and
 
 4           the prosecuting authority shall have the right to
 
 5           continue as a party; or
 
 6      (2)  Notify the court that it declines to proceed with the
 
 7           action, in which case the prosecuting authority shall
 
 8           have the right to conduct the action.
 
 9      §   -5  Actions initiated by a private person; filing
 
10 procedures.(a)  A private person may bring a civil action
 
11 against another person who has violated or is violating section
 
12 -2 for the person and either for the State in the name of the
 
13 State, if any state funds are involved, or for a political
 
14 subdivision in the name of the political subdivision, if
 
15 political subdivision funds are exclusively involved.  The
 
16 private person bringing the action shall be referred to as the
 
17 private plaintiff.  Once filed, the action may be dismissed only
 
18 with the written consent of the court, taking into account the
 
19 best interests of the parties involved and the public purposes
 
20 behind this chapter.
 
21      (b)  A complaint filed by a private person under this
 
22 section shall be filed in circuit court and shall remain sealed
 
23 by the court until one of the following has occurred:
 

 
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 1      (1)  Notice has been given by the attorney general as
 
 2           provided in subsection (f) or subsection (h);
 
 3      (2)  Notice has been given by the prosecuting authority as
 
 4           provided in subsection (g); or
 
 5      (3)  A period of sixty days, or longer if extended by the
 
 6           court, has passed.
 
 7 No service shall be made on the defendant until after the
 
 8 complaint is unsealed.
 
 9      (c)  On the same day as the complaint is filed pursuant to
 
10 subsection (b), the private plaintiff shall serve the attorney
 
11 general or appropriate prosecuting authority with a copy of the
 
12 complaint and a written disclosure of substantially all material
 
13 evidence and information the person possesses.  Service shall be
 
14 made by certified or registered mail.
 
15      (d)  Within sixty days after receiving a complaint and
 
16 written disclosure of material evidence and information alleging
 
17 violations that involve state funds but not political subdivision
 
18 funds from a private plaintiff, the attorney general may elect to
 
19 intervene and proceed with the action.
 
20      (e)  The attorney general, for good cause shown, may file a
 
21 motion with the court for an extension of the time during which
 
22 the complaint remains under seal pursuant to subsection (b).  The
 
23 motion may be supported by affidavits or other submissions.
 

 
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 1      (f)  Before the last day of the sixty-day period or the last
 
 2 extension obtained under subsection (e), the attorney general
 
 3 shall do either of the following:
 
 4      (1)  Notify the court that it intends to proceed with the
 
 5           action, in which case the action shall be conducted by
 
 6           the attorney general and the seal shall be lifted; or
 
 7      (2)  Notify the court that it declines to proceed with the
 
 8           action, in which case the seal shall be lifted and the
 
 9           private plaintiff shall have the right to conduct the
 
10           action.
 
11      (g)  Within fifteen days after receiving a complaint
 
12 alleging violations that exclusively involve political
 
13 subdivision funds, the attorney general shall forward copies of
 
14 the complaint and written disclosure of material evidence and
 
15 information to the appropriate prosecuting authority for
 
16 disposition, and shall notify the private plaintiff of the
 
17 transfer.  Within forty-five days after the attorney general
 
18 forwards the complaint and written disclosure, the prosecuting
 
19 authority may elect to intervene and proceed with the action.
 
20      The prosecuting authority, for good cause shown, may file a
 
21 motion with the court for an extension of the time during which
 
22 the complaint remains under seal.  The motion may be supported by
 
23 affidavits or other submissions.
 

 
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 1      Before the expiration of the forty-five-day period or any
 
 2 extensions obtained under this subsection, the prosecuting
 
 3 authority shall do either of the following:
 
 4      (1)  Notify the court that it intends to proceed with the
 
 5           action, in which case the action shall be conducted by
 
 6           the prosecuting authority and the seal shall be lifted;
 
 7           or
 
 8      (2)  Notify the court that it declines to proceed with the
 
 9           action, in which case the seal shall be lifted and the
 
10           private plaintiff shall have the right to conduct the
 
11           action.
 
12      (h)  Within fifteen days after receiving a complaint
 
13 alleging violations that involve both state and political
 
14 subdivision funds, the attorney general shall forward copies of
 
15 the complaint and written disclosure to the appropriate
 
16 prosecuting authority, and shall coordinate its review and
 
17 investigation with those of the prosecuting authority.  Within
 
18 sixty days after the attorney general receives a complaint and
 
19 written disclosure of material evidence and information alleging
 
20 violations that involve both state and political subdivision
 
21 funds, the attorney general or the prosecuting authority, or
 
22 both, may elect to intervene and proceed with the action.
 
23      The attorney general or the prosecuting authority, or both,
 

 
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 1 for good cause shown, may file a motion with the court for an
 
 2 extension of the time during which the complaint remains under
 
 3 seal under subsection (b).  The motion may be supported by
 
 4 affidavits or other submissions.  Before the expiration of the
 
 5 sixty-day period or any extensions obtained under this
 
 6 subsection, the attorney general shall do one of the following:
 
 7      (1)  Notify the court that it intends to proceed with the
 
 8           action, in which case the action shall be conducted by
 
 9           the attorney general and the seal shall be lifted;
 
10      (2)  Notify the court that it declines to proceed with the
 
11           action but that the prosecuting authority of the
 
12           political subdivision involved intends to proceed with
 
13           the action, in which case the seal shall be lifted and
 
14           the action shall be conducted by the prosecuting
 
15           authority; or
 
16      (3)  Notify the court that both it and the prosecuting
 
17           authority decline to proceed with the action, in which
 
18           case the seal shall be lifted and the private plaintiff
 
19           shall have the right to conduct the action.
 
20      If the attorney general proceeds with the action pursuant to
 
21 paragraph (1), the prosecuting authority of the political
 
22 subdivision shall be permitted to intervene in the action within
 
23 sixty days after the attorney general notifies the court of its
 

 
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 1 intentions.
 
 2      (i)  The defendant shall not be required to respond to any
 
 3 complaint filed under this section until thirty days after the
 
 4 complaint is unsealed and served upon the defendant.
 
 5      (j)  When a person brings an action under this section, no
 
 6 other person may bring a related action based on the facts
 
 7 underlying the pending action.  If another person brings a
 
 8 related action based on the facts underlying a pending action
 
 9 under this section, the second action shall be dismissed.
 
10      §   -6  Limitations on actions.(a)  No action shall be
 
11 brought under section    -5 against a member of the state senate
 
12 or state house of representatives, a member of the judiciary, an
 
13 elected official in the executive branch of the State, or a
 
14 member of the governing body of any political subdivision, if the
 
15 action is based on evidence or information known to the state or
 
16 political subdivision when the action was brought.  For purposes
 
17 of this section, evidence or information known only to the person
 
18 or persons against whom an action is brought under section    -5
 
19 shall not be considered to be known to the state or political
 
20 subdivision.
 
21      (b)  No person shall bring an action under section    -5
 
22 that is based upon allegations or transactions that are the
 
23 subject of a civil suit or an administrative civil monetary
 

 
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 1 penalty proceeding in which the State or political subdivision is
 
 2 already a party.
 
 3      (c)  No person shall bring an action under section     -5
 
 4 based upon the public disclosure of allegations or transactions
 
 5 in a criminal, civil, or administrative hearing, in an
 
 6 investigation, report, hearing, or audit conducted by or at the
 
 7 request of the senate, house of representatives, auditor, or
 
 8 governing body of a political subdivision, or from the news
 
 9 media, unless the person bringing the action is an original
 
10 source of the information.
 
11      For purposes of this subsection, "original source" means an
 
12 individual who has direct and independent knowledge of the
 
13 information on which the allegations are based, who voluntarily
 
14 provided the information to the State or political subdivision
 
15 before filing an action based on that information, and whose
 
16 information provided the basis or catalyst for the investigation,
 
17 hearing, audit, or report that led to the public disclosure.
 
18      (d)  No present or former employee of the State or a
 
19 political subdivision shall bring an action under section    -5
 
20 based upon information discovered by the employee during the
 
21 course of the employee's employment, unless the employee first,
 
22 in good faith, exhausted any existing internal procedures for
 
23 reporting and seeking recovery of the falsely claimed sums
 

 
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 1 through official channels and the State or political subdivision
 
 2 failed to act on the information provided within a reasonable
 
 3 period of time.
 
 4      §   -7  Prosecution, dismissal, or settlement of action.
 
 5 (a)  If the State or political subdivision proceeds with the
 
 6 action, it shall have the primary responsibility for prosecuting
 
 7 the action.  The private plaintiff shall have the right to
 
 8 continue as a full party to the action.
 
 9      (b)  The State or political subdivision may file a motion to
 
10 dismiss the action for good cause notwithstanding the objections
 
11 of the private plaintiff.  The court shall give all parties the
 
12 opportunity to present evidence at a hearing before granting or
 
13 denying a motion to dismiss the action for good cause.
 
14      (c)  Upon court approval, the State or political subdivision
 
15 may settle the action with the defendant notwithstanding the
 
16 objections of the private plaintiff.  The court shall not approve
 
17 a settlement that is objected to by any party unless the court
 
18 determines, after providing all parties the opportunity to
 
19 present evidence at a hearing, that the proposed settlement is
 
20 fair, adequate, and reasonable under all of the circumstances.
 
21      (d)  If the State or political subdivision elects not to
 
22 proceed, the private plaintiff shall have the same right to
 
23 conduct the action as the attorney general or prosecuting
 

 
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 1 authority would have had if it had chosen to proceed under this
 
 2 section.  If the State or political subdivision so requests, and
 
 3 at its own expense, the State or political subdivision shall be
 
 4 served with copies of all pleadings filed in the action and
 
 5 supplied with copies of all deposition transcripts.
 
 6      (e)  Upon timely application, the court shall permit the
 
 7 State or political subdivision to intervene in an action with
 
 8 which it had initially declined to proceed if the interest of the
 
 9 State or political subdivision in recovery of the property or
 
10 funds involved is not being adequately represented by the private
 
11 plaintiff.  If the State or political subdivision is allowed to
 
12 intervene, the private plaintiff shall retain principal
 
13 responsibility for the action and the recovery of the parties
 
14 shall be determined as if the State or political subdivision had
 
15 elected not to proceed.
 
16      §   -8  Awarding of proceeds of action or settlement.(a)
 
17 If the attorney general initiates an action pursuant to section
 
18    -3 or assumes control of an action initiated by a prosecuting
 
19 authority pursuant to section    -4(b)(1), the attorney general
 
20 shall receive thirty-three per cent of the proceeds of the action
 
21 or settlement of the claim, which shall be used to support its
 
22 ongoing investigation and prosecution of false claims.
 
23      (b)  If a prosecuting authority initiates and conducts an
 

 
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 1 action pursuant to section    -4, the prosecuting authority shall
 
 2 receive thirty-three per cent of the proceeds of the action or
 
 3 settlement of the claim, which shall be used to support its
 
 4 ongoing investigation and prosecution of false claims.
 
 5      (c)  If a prosecuting authority intervenes in an action
 
 6 initiated by the attorney general pursuant to section    -3(c) or
 
 7 remains a party to an action assumed by the attorney general
 
 8 pursuant to section    -4(b)(1), the court may award the
 
 9 prosecuting authority a portion of the attorney general's thirty-
 
10 three per cent of the recovery under subsection (a), taking into
 
11 account the prosecuting authority's role in investigating and
 
12 conducting the action.
 
13      (d)  If the State or political subdivision proceeds with an
 
14 action brought by a private plaintiff under section    -5, the
 
15 private plaintiff, subject to subsections (f) and (g), shall
 
16 receive at least fifteen per cent but not more than thirty-three
 
17 per cent of the proceeds of the action or settlement of the
 
18 claim, depending upon the extent to which the private plaintiff
 
19 substantially contributed to the prosecution of the action.  When
 
20 it conducts the action, the attorney general or the prosecuting
 
21 authority shall receive thirty-three per cent of the proceeds of
 
22 the action or settlement of the claim, which shall be used to
 
23 support its ongoing investigation and prosecution of false claims
 

 
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 1 made against the State or political subdivision.  When both the
 
 2 attorney general and a prosecuting authority are involved in a
 
 3 private plaintiff action pursuant to section    -5, the court, in
 
 4 its discretion, may award the prosecuting authority a portion of
 
 5 the attorney general's thirty-three per cent of the recovery,
 
 6 taking into account the prosecuting authority's contribution to
 
 7 investigating and conducting the action.
 
 8      (e)  If the State or political subdivision do not proceed
 
 9 with an action under this section, the private plaintiff, subject
 
10 to subsections (f) and (g), shall receive an amount that the
 
11 court decides is reasonable for collecting the civil penalty and
 
12 damages on behalf of the government.  The amount shall be not
 
13 less than twenty-five per cent and not more than fifty per cent
 
14 of the proceeds of the action or settlement and shall be paid out
 
15 of these proceeds.
 
16      (f)  Where the action is one provided for under section
 
17    -6(d), the present or former employee of the State or
 
18 political subdivision shall not be entitled to any minimum
 
19 guaranteed recovery from the proceeds.  The court, however, may
 
20 award the private plaintiff sums from the proceeds as it
 
21 considers appropriate, but in no case more than thirty-three per
 
22 cent of the proceeds if the State or political subdivision goes
 
23 forth with the action or fifty per cent if the State or political
 

 
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 1 subdivision declines to go forward, taking into account the
 
 2 significance of the information, the role of the private
 
 3 plaintiff in advancing the case to litigation, and the scope of,
 
 4 and response to, the employee's attempts to report and gain
 
 5 recovery of the falsely claimed funds through official channels.  
 
 6      (g)  Where the action is one that the court finds to be
 
 7 based primarily on information from a present or former employee
 
 8 who actively participated in the fraudulent activity, the
 
 9 employee shall not be entitled to any minimum guaranteed recovery
 
10 from the proceeds.  The court, however, may award the private
 
11 plaintiff any sums from the proceeds that it considers
 
12 appropriate, but in no case more than thirty-three per cent of
 
13 the proceeds if the State or political subdivision goes forward
 
14 with the action or fifty per cent if the State or political
 
15 subdivision declines to go forward, taking into account the
 
16 significance of the information, the role of the private
 
17 plaintiff in advancing the case to litigation, the scope of the
 
18 present or past employee's involvement in the fraudulent
 
19 activity, the employee's attempts to avoid or resist the
 
20 activity, and all other circumstances surrounding the activity.  
 
21      (h)  The portion of the recovery not distributed pursuant to
 
22 subsections (a) to (g), shall revert to the State if the
 
23 underlying false claims involved state funds exclusively and to
 

 
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 1 the political subdivision if the underlying false claims involved
 
 2 political subdivision funds exclusively.  If the violation
 
 3 involved both state and political subdivision funds, the court
 
 4 shall make an apportionment between the State and political
 
 5 subdivision based on their relative share of the funds falsely
 
 6 claimed.
 
 7      (i)  For purposes of this section, "proceeds" include civil
 
 8 penalties as well as double or treble damages as provided in
 
 9 section    -2.
 
10      (j)  If the State, political subdivision, or the private
 
11 plaintiff prevails in or settles any action under section    -7,
 
12 the private plaintiff shall receive an amount for reasonable
 
13 expenses that the court finds to have been necessarily incurred,
 
14 plus reasonable costs and attorneys' fees.  All expenses, costs,
 
15 and fees shall be awarded against the defendant and under no
 
16 circumstances shall they be the responsibility of the State or
 
17 political subdivision.
 
18      (k)  If the State, a political subdivision, or the private
 
19 plaintiff proceeds with the action, the court may award to the
 
20 defendant its reasonable attorneys' fees and expenses against the
 
21 party that proceeded with the action if the defendant prevails in
 
22 the action and the court finds that the claim was clearly
 
23 frivolous or brought solely for purposes of harassment.
 

 
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 1      §   -9  Discovery requests; interference.  Upon motion by
 
 2 the attorney general or prosecuting authority, the court may stay
 
 3 a discovery request by the person initiating the action for a
 
 4 period of not more than sixty days.  The court shall stay a
 
 5 discovery request under this section if the attorney general or
 
 6 prosecuting authority shows that the discovery requested would
 
 7 interfere with an investigation or a prosecution of a criminal or
 
 8 civil matter arising out of the same facts, regardless of whether
 
 9 the attorney general or prosecuting authority proceeds with the
 
10 action.  The court may extend the sixty-day period upon a showing
 
11 that the attorney general or prosecuting authority has pursued
 
12 the criminal or civil investigation or proceedings with
 
13 reasonable diligence and any proposed discovery in the civil
 
14 action would interfere with the ongoing criminal or civil
 
15 investigation or proceedings.
 
16      §   -10  Unrestricted participation by private person
 
17 initiating action; limitations.  Upon motion by the attorney
 
18 general or prosecuting authority, the court may impose
 
19 limitations on the participation in the litigation of the private
 
20 person initiating the action.  The court shall not impose
 
21 limitations unless the attorney general or prosecuting authority
 
22 shows that unrestricted participation in the litigation by the
 
23 private person initiating the action would interfere with or
 

 
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 1 unduly delay the attorney general's or prosecuting authority's
 
 2 prosecution of the case, or would be repetitious, irrelevant, or
 
 3 for purposes of harassment.  Limitations imposed under this
 
 4 section may include:
 
 5      (1)  Limiting the number of witnesses the private person may
 
 6           call;
 
 7      (2)  Limiting the length of the testimony of the witnesses;
 
 8      (3)  Limiting the private person's cross-examination of
 
 9           witnesses; and
 
10      (4)  Otherwise limiting the participation by the private
 
11           person in the litigation.
 
12      §   -11  False claims act fund; establishment.  There is
 
13 established within the state treasury a false claims act fund
 
14 into which any portion allocated to the attorney general of the
 
15 proceeds and interest from a judgment or settlement pursuant to
 
16 this chapter shall be deposited.  Moneys in the fund, upon
 
17 appropriation by the legislature, shall be used by the attorney
 
18 general to support the ongoing investigation and prosecution of
 
19 false claims in furtherance of this chapter.
 
20      §   -12  Applicability; University of Hawaii.
 
21 Notwithstanding any other provision of law, the University of
 
22 Hawaii shall be considered a political subdivision, and the
 
23 general counsel of the University of Hawaii shall be considered a
 

 
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 1 prosecuting authority for the purposes of this chapter.  The
 
 2 university shall have the right to intervene in an action brought
 
 3 by the attorney general under section    -3 or a private party
 
 4 under section    -5 or investigate and bring an action pursuant
 
 5 to section    -3, if it is determined that the claim involves the
 
 6 University of Hawaii.
 
 7      §   -13  Statute of limitations.(a)  A civil action under
 
 8 section    -3 to    -5 shall not be filed more than three years
 
 9 after the date of discovery by the official of the State or
 
10 political subdivision charged with responsibility to act in the
 
11 circumstances or, in any event, no more than ten years after the
 
12 date on which the violation of section    -2 is committed.
 
13      (b)  In any action brought under section    -3,    -4, or
 
14    -5 the State, the political subdivision, or the private
 
15 plaintiff shall be required to prove all essential elements of
 
16 the cause of action, including damages, by a preponderance of the
 
17 evidence.
 
18      (c)  Notwithstanding any other provision of law to the
 
19 contrary, a guilty verdict rendered in a criminal proceeding
 
20 charging false statements or fraud, whether upon a verdict after
 
21 trial or upon a plea of guilty or nolo contendere, except for a
 
22 plea of nolo contendere made prior to January 1, 2001, shall
 
23 prevent the defendant from denying the essential elements of the
 

 
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 1 criminal defense in any action involving the same transaction as
 
 2 in the criminal proceeding and brought under section    -3 or
 
 3    -4.
 
 4      §   -15  Application.  (a)  The provisions of this chapter
 
 5 are not exclusive, and the remedies provided for in this chapter
 
 6 shall be in addition to any other remedies provided for in any
 
 7 other law.
 
 8      (b)  This chapter shall be liberally construed and applied
 
 9 to promote the public interest."
 
10      SECTION 2.  This Act shall take effect upon its approval.