Illinois General Assembly - Full Text of SB1577
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Full Text of SB1577  100th General Assembly


Sen. Julie A. Morrison

Filed: 5/12/2017





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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    the minimum amount and not more than the maximum amount
22    allowed for a civil penalty for a violation of the federal
23    False Claims Act (31 U.S.C. 3729 et seq.) as adjusted by
24    the Federal Civil Penalties Inflation Adjustment Act of
25    1990 (28 U.S.C. 2461) $5,500 and not more than $11,000,
26    plus 3 times the amount of damages which the State sustains



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1    because of the act of that person. Notwithstanding any
2    other provision, a person is liable to the State for a
3    civil penalty of not less than $5,500 and not more than
4    $11,000, plus 3 times the amount of damages which the State
5    sustains because of the act of that person, when: (i) the
6    civil action was brought by a private person pursuant to
7    paragraph (1) of subsection (b) of Section 4; (ii) the
8    State did not elect to intervene pursuant to paragraph (2)
9    of subsection (b) of Section 4; (iii) the actual amount of
10    the tax owed to the State is equal to or less than $50,000,
11    which does not include interest, penalties, attorney's
12    fees, costs, or any other amounts owed or paid pursuant to
13    this Act; and (iv) the violation of this Act relates to or
14    involves a false claim regarding a tax administered by the
15    Department of Revenue, excluding claims, records, or
16    statements made under the Property Tax Code. The penalties
17    in this Section are intended to be remedial rather than
18    punitive, and shall not preclude, nor be precluded by, a
19    criminal prosecution for the same conduct.
20        (2) A person violating this subsection shall also be
21    liable to the State for the costs of a civil action brought
22    to recover any such penalty or damages.
23    (b) Definitions. For purposes of this Section:
24        (1) The terms "knowing" and "knowingly":
25            (A) mean that a person, with respect to
26        information:



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1                (i) has actual knowledge of the information;
2                (ii) acts in deliberate ignorance of the truth
3            or falsity of the information; or
4                (iii) acts in reckless disregard of the truth
5            or falsity of the information, and
6            (B) require no proof of specific intent to defraud.
7        (2) The term "claim":
8            (A) means any request or demand, whether under a
9        contract or otherwise, for money or property and
10        whether or not the State has title to the money or
11        property, that
12                (i) is presented to an officer, employee, or
13            agent of the State; or
14                (ii) is made to a contractor, grantee, or other
15            recipient, if the money or property is to be spent
16            or used on the State's behalf or to advance a State
17            program or interest, and if the State:
18                    (I) provides or has provided any portion
19                of the money or property requested or demanded;
20                or
21                    (II) will reimburse such contractor,
22                grantee, or other recipient for any portion of
23                the money or property which is requested or
24                demanded; and
25            (B) does not include requests or demands for money
26        or property that the State has paid to an individual as



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1        compensation for State employment or as an income
2        subsidy with no restrictions on that individual's use
3        of the money or property.
4        (3) The term "obligation" means an established duty,
5    whether or not fixed, arising from an express or implied
6    contractual, grantor-grantee, or licensor-licensee
7    relationship, from a fee-based or similar relationship,
8    from statute or regulation, or from the retention of any
9    overpayment.
10        (4) The term "material" means having a natural tendency
11    to influence, or be capable of influencing, the payment or
12    receipt of money or property.
13    (c) Exclusion. This Section does not apply to claims,
14records, or statements made under the Illinois Income Tax Act.
15(Source: P.A. 95-128, eff. 1-1-08; 96-1304, eff. 7-27-10.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".