State could see more funds recovered from fraud claims

Sponsored by Rep. Steve Simon (DFL-Hopkins) and Sen. Ron Latz (DFL-St. Louis Park), a new law will make changes to the current state False Claims Act to conform to federal standards and ensure the state is eligible for a 60/40 split of the recovered funds.

The new law is effective Aug. 1, 2013.

“To sweeten the pot, (the federal government) will add a 10 percent bonus to all states that pass a False Claims Act that comply with certain guardrails or guidelines,” Simon said.

Some of the technical changes that will be made to the act include removing a limitation that an action must involve state “money, property or services” and add the limitation that an action cannot be maintained if it is based on information already known to the state or political subdivision at the time the action is brought.

HF290*/SF281/CH16

HF0290* / SF0281 / CH16