Sen. Pamela J. Althoff
Filed: 3/29/2017
 
 

 

 

 
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1
AMENDMENT TO SENATE BILL 1577 




2    AMENDMENT NO. ______. Amend Senate Bill 1577 by replacing 
3everything after the enacting clause with the following:

 
4    "Section 5. The Illinois False Claims Act is amended  by 
5changing Section 3 as follows:
 



6    (740 ILCS 175/3)  (from Ch. 127, par. 4103)


7    Sec. 3. False claims. 

8    (a) Liability for certain acts. 
9        (1) In general, any person who:


10            (A) knowingly presents, or causes to be presented, 
11        a false or fraudulent claim
for payment or approval;


12            (B) knowingly makes, uses, or causes to be made or 
13        used, a false record
or statement material to a false 
14        or fraudulent claim;


15            (C) conspires to commit a violation of 
16        subparagraph (A), (B), (D), (E), (F), or (G);


 
 
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1            (D) has possession, custody, or control of 
2        property or money used, or to
be used, by the State and 
3        knowingly delivers, or causes to be delivered, less 
4        than all the money or property;


5            (E) is authorized to make or deliver a document 
6        certifying receipt of
property used, or to be used, by 
7        the State and, intending to defraud the
State, makes or 
8        delivers the receipt without completely knowing that 
9        the
information on the receipt is true;

10    
        (F) knowingly buys, or receives as a pledge of an 
11        obligation or debt,
public property from an officer or 
12        employee of the State, or a member of
the Guard, who 
13        lawfully may not sell or pledge property; or 


14            (G) knowingly makes, uses, or causes to be made or 
15        used, a false record
or statement material to an 
16        obligation to pay or transmit
money or property to the 
17        State, or knowingly conceals or knowingly and 
18        improperly avoids or decreases an obligation to pay or 
19        transmit money or property to the State,

20    is liable to the State for a civil penalty of not less than 
21    $5,500 and not
more than $11,000, plus 3 times the amount 
22    of damages which the State
sustains because of the act of 
23    that person. The penalties in this Section are intended to 
24    be remedial rather than punitive, and shall not preclude, 
25    nor be precluded by, a criminal prosecution for the same 
26    conduct. 
 
 
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1        (2) A person violating
this subsection shall also be 
2    liable to the State for the costs of a civil
action brought 
3    to recover any such penalty or damages.
4        (3) For purposes of Medicaid fraud, a person who 
5    commits an act described in subdivisions (a)(1)(A) through 
6    (a)(1)(G) is liable to the State for a civil penalty of not 
7    less than the minimum amount and not more than the maximum 
8    amount allowed for a civil penalty for a violation of the 
9    federal False Claims Act (31 U.S.C. 3729 et seq.) as 
10    adjusted by the Federal Civil Penalties Inflation 
11    Adjustment Act of 1990 (28 U.S.C. 2461).

12    (b) Definitions.  For purposes of this Section: 
13        (1) The terms
"knowing" and "knowingly": 
14            (A) mean that a person, with respect to 
15        information:


16                (i) has actual knowledge of the information;


17                (ii) acts in deliberate ignorance of the truth 
18            or falsity of the
information; or


19                (iii) acts in reckless disregard of the truth 
20            or falsity of the
information, and
21            (B) require no proof of specific intent to defraud.

22        (2) The term "claim":
23            (A) means any
request or demand, whether under a 
24        contract or otherwise, for money or
property and 
25        whether or not the State has title to the money or 
26        property, that
 
 
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1                (i) is presented to an officer, employee, or 
2            agent of the State; or
3                (ii) is made to a contractor, grantee, or other 
4            recipient, if the money or property is to be spent 
5            or used on the State's behalf or to advance a State 
6            program or interest, and if the
State: 
7                    (I) provides or has provided any portion 
8                of the money or property requested or
demanded; 
9                or
10                    (II) will reimburse such contractor, 
11                grantee, or other
recipient for any portion of 
12                the money or property which is requested
or 
13                demanded; and
14            (B) does not include requests or demands for money 
15        or property that the State has paid to an individual as 
16        compensation for State employment or as an income 
17        subsidy with no restrictions on that individual's use 
18        of the money or property.


19        (3) The term "obligation" means an established duty, 
20    whether or not fixed, arising from an express or implied 
21    contractual, grantor-grantee, or licensor-licensee 
22    relationship, from a fee-based or similar relationship, 
23    from statute or regulation, or from the retention of any 
24    overpayment.
25        (4) The term "material" means having a natural tendency 
26    to influence, or be capable of influencing, the payment or 
 
 
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1    receipt of money or property. 
2    (c) Exclusion.  This Section does not apply to claims, 
3records, or
statements made under the Illinois Income Tax Act.

4(Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10.)

 

5    Section 99. Effective date. This Act takes effect upon 
6becoming law.".