Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 160, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a fraudulent claims law to allow qui tam or fraudulent claim actions to be brought on behalf of the counties in the same manner as the Hawaii False Claims Act for actions on behalf of the State.

The Hawaii False Claims Act was passed last session to allow private citizens to file and prosecute suits on behalf of the State against contractors who have submitted false claims for payment. A recent $4,000,000 settlement was paid to the State as a result of a claim filed on behalf of two plaintiffs under this law. The False Claims Act has led to monetary recoveries on behalf of the State, in addition to improved health care in nursing and long-term care homes for our seniors. Your Committee believes that the counties should have the benefit of a False Claims Act to allow similar recoveries on behalf of the counties. In establishing a False Claims Act applicable on behalf of the counties, this bill puts the counties on equal footing with the State.

Your Committee has amended the bill by:

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 160, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 160, H.D. 1, S.D. 1.