| Summary |
The bill establishes the Colorado False Claims Act (the act).
Pursuant to the act, a person is liable to the state or a political subdivision
of the state for a civil penalty if the person commits, conspires to commit,
or aids and abets the commission of any of the following (collectively,
false claims):
• Knowingly presenting, or causing to be presented, a false
or fraudulent claim for payment or approval;
• Knowingly making, using, or causing to be made or used
a false record or statement material to a false or fraudulent
claim;
• Having possession, custody, or control of property or
money used, or to be used, by the state or political
subdivision and knowingly delivering, or causing to be
delivered, less than all of the money or property;
• Authorizing the making or delivery of a document
certifying receipt of property used, or to be used, by the
state or political subdivision and, with the intent to defraud
the state or political subdivision, making or delivering the
receipt without completely knowing that the information on
the receipt is true;
• Knowingly buying, or receiving as a pledge of an
obligation or debt, public property from an officer or
employee of the state or political subdivision who lawfully
may not sell or pledge the property; or
• Knowingly making, using, or causing to be made or used
a false record or statement material to an obligation to pay
or transmit money or property to the state or political
subdivision, or knowingly concealing or knowingly and
improperly avoiding or decreasing an obligation to pay or
transmit money or property to the state or political
subdivision.
A person who makes a false claim is liable to the state or a
political subdivision for the same amount provided in the federal False
Claims Act, as adjusted for inflation, plus 3 times the amount of the
damages sustained by the state or political subdivision, and the costs
incurred for the investigation and prosecution of the false claim.
The bill requires the attorney general or a local prosecutor to
investigate false claims. The attorney general, prosecuting authority of a
political subdivision, or a private individual (relator) may bring a civil
action against a person who made a false claim. The bill permits the
attorney general or prosecuting authority of a political subdivision to
intervene in an action brought by a relator. A relator may be awarded up
to 30% of the proceeds from a false claims action based on the extent the
relator contributed to the investigation and prosecution of the false claim.
If the relator is an employee of the state or political subdivision and learns
information about the false claim in the course of the relator's work, the
court will award that amount to the relator's employer.
The bill authorizes the state auditor to share information about
potential false claims with the attorney general and a political subdivision.
A court cannot hear a false claim action:
• Brought against a serving member of the general assembly,
a member of the state judiciary, or an elected official in the
executive branch of the state of Colorado acting in the
member's or official's official capacity; or
• Based on the same allegations or transactions that are the
subject of a different civil or administrative proceeding.
The bill prohibits retaliatory action against an individual because
of the individual's efforts in furtherance of investigating, prosecuting, or
stopping false claims. A court hearing a false claims action may hear a
claim for retaliation against the individual.
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