The House of Delegates rejected the
controversial “false claims” bill, which would have allowed individuals to sue
the state or businesses if they suspected fraud and then claim part of the
settlement money.
The 55-41 defeat of HB 4001 on
Tuesday followed a lengthy debate on the House floor where opponents denounced
the legislation as primarily benefiting trial lawyers and potentially damaging
business.
The bill was the first to move in
the House this session, pushed by House Judiciary Committee Chairman Tim
Manchin (D-Marion). The Fairmont
“It works,” Manchin said. “It
catches people who cheat the government. I can’t understand why we’re afraid to
provide the same incentives to our brave West Virginians
who come forward and do the honest thing.”
The legislation would have allowed
individuals who bring successful suits for fraud to receive a portion of the
reclaimed money.
However, the business community
pushed back hard against the bill, claiming it would open a flood of litigation
and further damage the state’s business climate.
“We unfortunately will end the
session the way we began it … considering legislation that virtually every
proponent of economic development in this state agrees would represent a
windfall for the sue-and-settle industry at the expense of small business,”
said Del. Paul Espinosa (R-Jefferson).
The outcome of Tuesday’s vote means
the bill is likely dead for this session.
