SB 799

Bill Subjects

Abstract

(1) Existing law, the False Claims Act, provides that any person who commits specified acts, including, but not limited to, knowingly presenting a false or fraudulent claim for payment or approval or knowingly making or using a false record or statement material to a false or fraudulent claim, is liable to the state or to the political subdivision for 3 times the amount of damages that the state or political subdivision sustained because of the act and for the costs of a civil action brought to recover any penalties or damages, and is subject to a civil penalty. That act does not apply to claims, records, or statements made under the Revenue and Taxation Code. This bill would instead apply the False Claims Act to claims, records, obligations, or statements made under the Revenue and Taxation Code if the damages pleaded in the action exceed $200,000, or the taxable income, gross receipts, or total sales of the individual or entity against whom the action is brought, as specified, exceeds $500,000 per taxable year. The bill would allow the Attorney General or prosecuting authority to obtain otherwise confidential records relating to taxes, fees, surcharges, or other obligations under the Revenue and Taxation Code needed to investigate or prosecute the suspected violations, but would otherwise require that information to be kept confidential and subject to the limitation, a violation of which is a crime, on taxpayer information's collection and use. By expanding the scope of a crime, the bill would impose a state-mandated local program. (2) Existing law requires the Attorney General or the prosecuting authority of a political subdivision to diligently investigate violations of the False Claims Act involving state funds or political subdivision funds, respectively, and authorizes the Attorney General, the prosecuting authority, or a qui tam plaintiff to bring a civil action against a person who commits those acts. Existing law requires a complaint filed by a private person to be filed in superior court in camera, authorizes the complaint to remain under seal for up to 60 days, and prohibits service on the defendant until the complaint is unsealed. This bill would instead require the complaint to remain under seal for at least 60 days, and would prohibit service on the defendant until the court orders it. The bill would deem a demand for payment or request for payment based on an alleged violation of the False Claims Act by an attorney representing a private person prior to filing a complaint to be a violation of the requirement that the complaint be filed in superior court in camera. (3) Existing law provides that an employee, contractor, or agent shall be entitled to all relief necessary to make that employee, contractor, or agent whole, if that employee, contractor, or agent is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against because of lawful acts done by the employee, contractor, agent, or associated others in an effort to stop one or more violations of the False Claims Act. This bill would define lawful act for these purposes to include obtaining or transmitting documents, data, correspondence, electronic mail, or any other information, necessary to investigate, potentially file, or file a cause of action under the False Claims Act, even though that act may violate a contract, employment term, or duty owed to the employer or contractor. The bill would also specify that those provisions apply to current and former employees. (4) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.