The Maine False Claims Act


Be it enacted by the People of the State of Maine as follows:

5 MRSA §215 is enacted to read:

§ 215 Maine False Claims Act

§ 215-A Short Title:
This chapter will be known as and may be cited as the "Maine False Claims Act".

§ 216 Definitions:
The following words, as used in this Act, unless the context otherwise requires or a different meaning is specifically required, shall mean:
1. Government Defined. For purposes of this Act, the term "government" refers to the State of Maine or it's municipalities or any other political subdivision(s) thereof including quasi-municipal organizations, Agencies, Commissions, Authorities

2. Knowing And Knowingly Defined. For purposes of this Act, the terms "knowing" and "knowingly" mean that a person, with respect to information:
(1) has actual knowledge of the information;
(2) acts in deliberate ignorance of the truth or falsity of the information; or
(3) acts in reckless disregard of the truth or falsity of the information, and no proof of specific intent to defraud is required.
3. Claim Defined: For purposes of this Act, "claim" includes any request or demand, whether under a contract or otherwise, for money or property which is made to a contractor, grantee, or other recipient if any government entity provides any portion of the money or property which is requested or demanded, or if the government will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded.

4. Person: Any individual; group of individuals; business; coalition; or any other organization; any unit or sub-unit of any government or political body.

5. Relator: Original person bringing an action under this section. Relator must be an original source as defined herein.

6. Original source: means an individual who has direct and independent knowledge of the information on which the allegations are based and has voluntarily provided the information to the State before filing an action under this section that is based on that information.
§ 217 Legislative Intent
Intent. It is the intent of the Legislature that this chapter shall be construed and applied in a manner that reflects the congressional intent behind the Federal False Claims Act, including the legislative history underlying the 1986 amendments to the Federal False Claims Act; in construing this section the courts will be guided by the interpretations given by the Federal Courts to 31 U.S.C. §3729.
§ 218 Enforcement
Rules and regulations. The Attorney General may make rules and regulations interpreting this section. Such rules and regulations shall not be inconsistent with the rules, regulations and decisions of the Federal Courts interpreting the provisions of 31 U.S.C. §3729 (The Federal False Claims Act) as from time to time amended. Evidence of a violation of a rule or regulation made by the Attorney General shall constitute prima facie evidence of an act or practice declared to be unlawful by this chapter in any action thereafter brought under this chapter.
§ 219 Statute of limitation: A civil action under §230 may not be brought:
(1) more than (6)(10) years after the date on which the violation of §229 is committed, or
(2) more than (3)(10) years after the date when facts material to the right of action are known or reasonably should have been known by the official of the government charged with responsibility to act in the circumstances, but in no event more than (10)(15) years after the date on which the violation is committed, whichever occurs last.
§ 220 Confidentiality

§ 229 False claims
(a) Liability For Certain Acts. Any person who:
(1) knowingly presents, or causes to be presented, to an officer or employee of the government a false or fraudulent claim for payment or approval;
(2) knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the government;
(3) conspires to defraud the government by getting a false or fraudulent claim allowed or paid;
(4) has possession, custody, or control of property or money used, or to be used, by the government and, intending to defraud the government or willfully to conceal the property, delivers, or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;
(5) authorized to make or deliver a document certifying receipt of property used, or to be used, by the government and, intending to defend the government, makes or delivers the receipt without completely knowing that the information on the receipt is true;
(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the government who lawfully may not sell or pledge the property; or
(7) knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to be government, is liable to the government for a civil penalty of not less than $5,000 and not more than $10,000, plus 3 times the amount of damages which the government sustains because of the act of that person, except that if the court finds that:
(A) the person committing the violation of this subsection furnished officials of the government responsible for investigating false claims violations with all information known to such person about the violation within 30 days after the date on which the defendant first obtained the information;
(B) such person fully cooperated with any government investigation of such violation; and
(C) at the time such person furnished the government with the information about the violation, no criminal prosecution, civil action, or administrative action had commenced under this title with respect to such violation, and the person did not have actual knowledge of the existence of an investigation into such violation; the court may assess not less than 2 times the amount of damages which the government sustains because of the act of the person. A person violating this subsection shall also be liable to the government for the costs of a civil action brought to recover any such penalty or damages.
(b) Exemption From Disclosure. - - Any information furnished pursuant to subparagraphs (A) through (C) of subsection (a) shall be exempt from disclosure under 1 MRSA §402(3)(B).

(c) Exclusion. - - This section does not apply to claims, records, or statements made under Local, State or Federal Tax Codes.
§230. Civil actions for false claims
(a) Responsibilities Of The Attorney General. The Attorney General diligently shall investigate a violation under §229. If the Attorney General finds that a person has violated or is violating §229, the Attorney General may bring a civil action under this section against the person.

(b) Actions By Private Persons.
(1) A person may bring a civil action for a violation of §229 for the person and for the government. The action shall be brought in the name of the government. The action may be dismissed only if the court and the Attorney General give written consent to the dismissal and their reasons for consenting.
(2) A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the government pursuant to Rule 4 of the Maine Rules of Civil Procedure. The complaint shall be filed in camera, shall remain under seal for at least 60 days, and shall not be served on the defendant until the court so orders. The government may elect to intervene and proceed with the action within 60 days after it receives both the complaint and the material evidence and information.
(3) The government may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under paragraph (2). Any such motions may be supported by affidavits or other submissions in camera. The defendant shall not be required to respond to any complaint filed under this section until 20 days after the complaint is unsealed and served upon the defendant pursuant to Rule 4 of the Maine Rules of Civil Procedure.
(4) Before the expiration of the 60day period or any extensions obtained under paragraph (3) the government shall:
(A) proceed with the action, in which case the action shall be conducted by the government; or
(B) notify the court that it declines to take over the action, in which case the person bringing the action shall have the right to conduct the action.
(5) When a person brings an action under this subsection, no person other than the government may intervene or bring a related action based on the facts underlying the pending action.
(c) Rights Of The Parties To Qui Tam Actions.
(1) If the government proceeds with the action, it shall have the primary responsibility for prosecuting the action, and shall not be bound by an act of the person bringing the action. Such person shall have the right to continue as a party to the action, subject to the limitations set forth in paragraph (2).

(2)
(A) The government may dismiss the action notwithstanding the objections of the person initiating the action if the person has been notified by the government of the filing of the motion and the court has provided the person with an opportunity for a hearing on the motion.
(B) The government may settle the action with the defendant notwithstanding the objections of the person initiating the action if the court determines, after a hearing, that the proposed settlement is fair, adequate, and reasonable under all the circumstances. Upon a showing of good cause, such hearing may be held in camera.
(C) Upon a showing by the government that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the government's prosecution of the case, or would be repetitious, irrelevant, or for purposes of harassment, the court may, in its discretion, impose limitations on the person's participation, such as:
(i) limiting the number of witnesses the person may call;
(ii) limiting the length of the testimony of such witnesses;
(iii) limiting the person's cross-examination of witnesses; or
(iv) otherwise limiting the participation by the person in the litigation.
(D) Upon a showing by the defendant that unrestricted participation during the course of the litigation by the person initiating the action would be for purposes of harassment or would cause the defendant undue burden or unnecessary expense, the court may limit the participation by the person in the litigation.
(3) If the government elects not to proceed with the action, the person who initiated the action shall have the right to conduct the action. If the government so requests, it shall be served with copies of all pleadings filed in the action and shall be supplied with copies of all deposition transcripts (at the government's expense). When a person proceeds with the action, the court, without limiting the status and rights of the person initiating the action, may nevertheless permit the government to intervene at a later date upon a showing of good cause.

(4) Whether or not the government proceeds with the action, upon a showing by the government that certain actions of discovery by the person initiating the action would interfere with the government's investigation or prosecution of a criminal or civil matter arising out of the same facts, the court may stay such discovery for a period of not more than 60 days. Such a showing shall be conducted in camera. The court may extend the 60 day period upon a further showing in camera that the government has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or proceedings.

(5) Notwithstanding subsection (b), the government may elect to pursue its claim through any alternate remedy available to the government, including any administrative proceeding to determine a civil money penalty. If any such alternate remedy is pursued in another proceeding, the person initiating the action shall have the same rights in such proceeding as such person would have had if the action had continued under this section. Any finding of fact or conclusion of law made in such other proceeding that has become final shall be conclusive on all parties to an action under this section. For purposes of the preceding sentence, a finding or conclusion is final if it has been finally determined on appeal to the appropriate court of the State of Maine, if all time for filing such an appeal with respect to the finding or conclusion is not subject to judicial review.
(d) Award To Qui Tam Plaintiff.
(1) If the government proceeds with an action brought by a person under subsection (b), such person shall, subject to the second sentence of this paragraph, receive at least 15 percent but not more than 25 percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the person substantially contributed to the prosecution of the action. Where the action is one which the court finds to be based primarily on disclosures of specific information (other than information provided by the person bringing the action) relating to allegations or transactions in a criminal, civil, or administrative hearing, in a congressional, legislative, administrative, or government oversight report, hearing, audit, or investigation, or from the news media, the court may award such sums as it considers appropriate, but in no case more than 10 percent of the proceedings, taking into account the significance of the information and the role of the person bringing the action in advancing the case to litigation. Any payment to a person under the first or second sentence of this paragraph shall be made from the proceeds. Any such person shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys' fees and costs. All such expenses, fees, and costs shall be awarded against the defendant.

(2) If the government does not proceed with an action under this section, the person bringing the action or settling the claim shall receive an amount which the court decides is reasonable for collecting the civil penalty and damages. The amount shall be not less than 25 percent and not more than 33.3 percent of the proceeds of the action or settlement and shall be paid out of such proceeds. Such person shall also receive an amount for reasonable expenses which the court finds to have been necessarily incurred, plus reasonable attorneys' fees and costs. All such expenses, fees, and costs shall be awarded against the defendant.

(3) Whether or not the government proceeds with the action, if the court finds that the action was brought by a person who planned and initiated the violation of §229 upon which the action was brought, then the court may, to the extent the court considers appropriate, reduce the share of the proceeds of the action which the person would otherwise receive under paragraph (1) or (2) of this subsection, taking into account the role of that person in advancing the case to litigation and any relevant circumstances pertaining to the violation. If the person bringing the action is convicted of criminal conduct arising from his or her role in the violation of §229, that person shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. Such dismissal shall not prejudice the right of the government to continue the action, represented by the Attorney General.
(A) Any recoveries forfeited as a result of this section will be paid into a fund to be used for the litigation of civil cases on behalf of indigent or otherwise unable plaintiffs.
(4) If the government does not proceed with the action and the person bringing the action conducts the action, the court may award to the defendant its reasonable attorneys' fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.
(e) Certain Actions Barred.
(1)
(A) No court shall have jurisdiction over an action brought under subsection (b) against a member of the Legislature, a member of the Judiciary, or a senior Executive Branch official if the action is based on evidence or information known to the government when the action was brought.
(B) For purposes of this paragraph, "senior executive branch official" means any officer or employee listed in section 201(f) of the Ethics in Government Act of 1978 (5 U.S.C. App.).
(2) In no event may a person bring an action under subsection (b) which is based upon allegations or transactions which are the subject of a civil suit or an administrative proceeding in which the government is already a party.

(3)
(A) No court shall have jurisdiction over an action under this section based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in a legislative, administrative, or government oversight report, hearing, audit, or investigation, or from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.
(f) Government Not Liable For Certain Expenses. The government is not liable for expenses which a person incurs in bringing an action under this section.

(g) Fees And Expenses To Prevailing Defendant. In civil actions brought under this section by the Attorney General, the provisions of Chapter 311 of Title 14 shall apply.

(h) Retaliation Prohibited. Any employee who is discharged, demoted, suspended, threatened, harassed, or in any other manner discriminated against in the terms and conditions of employment by his or her employer because of lawful acts done by the employee on behalf of the employee or others in furtherance of an action under this section, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed under this section, shall be entitled to all relief necessary to make the employee whole. Such relief shall include reinstatement with the same seniority status such employee would have had but for the discrimination, 2 times the amount of back pay, interest on the back pay, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys' fees. An employee may bring an action in the appropriate court of the State of Maine for the relief provided in this subsection.
§231.False Claims Procedure.
(a) A subpoena requiring the attendance of a witness at a trial or hearing conducted under §230 of this title may be served at any place in Maine.
(b) In any action brought under §230, the government or relator shall be required to prove all essential elements of the cause of action, including damages, by a mere preponderance of the evidence.
(c) Notwithstanding any other provision of law, the Maine Rules of Criminal Procedure, or the Maine Rules of Evidence, a final judgment rendered in favor of the government in any criminal proceeding charging fraud or false statements, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action which involves the same transaction as in the criminal proceeding and which is brought under subsection (a) or (b) of §230.
§232. False Claims Jurisdiction.
(a) Actions under §230. Any action under §230 may be brought in any judicial district in which the defendant or, in the case of multiple defendants, any one defendant can be found, resides, transacts business, or in which any act proscribed by §229 occurred. A summons as required by the Maine Rules of Civil Procedure shall be issued by the appropriate court and served at any place within or outside the United States.
(b) Claims under state law. The district courts shall have jurisdiction over any action brought under the laws of any State for the recovery of funds paid by a State or local government if the action arises from the same transaction or occurrence as an action brought under §230.