STAND. COM. REP. NO. 2281

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2115
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2115 entitled: 

     "A BILL FOR AN ACT RELATING TO FALSE CLAIMS,"

begs leave to report as follows:

     The purpose of this bill is to create a False Claims Act
under which the government, or a qui tam plaintiff on behalf of
the government, may prosecute persons who bring false claims
against the government.

     Your Committee finds that the federal version of the
proposed False Claims Act has a long and successful history.
Private plaintiffs, encouraged by the prospect of monetary
reward, may be compelled to uncover and prosecute false claims
when the government lacks resources to investigate.  Your
Committee believes that this measure will help deter false claims
against the State and county governments, and will help increase
the State's and counties' ability to recover damages from persons
who present false claims.

     Testimony in support of this measure was submitted by Local
Union 1186, the Building and Construction Trades Council, and one
individual.  Testimony in support of this measure, with
reservations, was submitted by the Attorney General.

     Upon further consideration, your Committee has amended this
measure by:


 
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                                   STAND. COM. REP. NO. 2281
                                   Page 2


     (1)  Expanding the scope of false claim actions by removing
          the prohibition on such actions when other remedies are
          available, with the exception of claims made under
          chapter 231 relating to tax evasion and fraud;

     (2)  Clarifying that if a second person brings a false
          claims action based on the same facts underlying a
          pending false claims action, the second person's action
          shall be dismissed by the court;

     (3)  Clarifying that information known only to a government
          official who is the defendant in a false claims action
          shall not be considered to be "known to the state or
          political subdivision," so that a private plaintiff can
          still bring an action in that circumstance;

     (4)  Deleting a section of the proposed law providing
          whistleblower remedies, as the existing Whistleblower
          Law would already provide remedies to a whistleblower
          under the proposed law;

     (5)  Deleting a provision for retroactive claims under the
          proposed law; and

     (6)  Making technical, non-substantive changes for the
          purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2115, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as S.B. No. 2115, S.D. 1, and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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