Supporters of a bill that
encourages lawsuits by private citizens against government for fraud are trying
to renew momentum for the legislation.
The “false claims” bill (H.B. 4001)
quickly passed the House Judiciary Committee in the opening days of the
session, but hit a roadblock before the full House when business leaders raised
concerns.
Under so-called “qui tam” legislation,
citizens would be able to file suit against the state government, or companies
doing business with the government, alleging fraud. If they win, they get a
percentage of the settlement money.
State Chamber of Commerce President
Steve Roberts has called it a “sue-and-settle” bill and a boon to trial
lawyers. However, during a public hearing Tuesday, Patrick Burns of
Taxpayers Against Fraud said the whistle blower suits hold the government and
companies responsible for wrongdoing.
“Getting caught shouldn’t be, ‘Oh,
we just got caught. We’ll just have to pay back what we stole.’ If
you do that then you have incentivized fraud. If you hit them with
trouble damages, then you disincentivize fraud,” Burns said.
Burns also dismissed concerns that
the law will produce a rash of frivolous lawsuits by trial lawyers.
“They really understand it’s going to take years to move
litigation and so they’re only going after the big fish,” he said.
