ENGROSSED SUBSTITUTE SENATE BILL 5978

 

 

AS AMENDED BY THE HOUSE

 

Passed Legislature – 2012 Regular Session

 

State of Washington         62nd Legislature        2012 Regular Session

 

By   Senate Health & Long-Term Care   (originally sponsored by Senators

Pflug, Keiser, Frockt, Conway, and Kohl-Welles)

 

READ FIRST TIME 01/10/12.

 

 

1        AN ACT Relating to medicaid fraud; amending RCW 74.09.210; adding

2    new  sections to chapter 74.09 RCW;  adding new  sections to chapter

3    43.131 RCW;  adding a new  chapter to Title 74 RCW;  creating a new

4    section; prescribing penalties; and declaring an emergency.

 

5    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

6                                                                                   PART I

7                                               WASHINGTON MEDICAID FRAUD PROVISIONS

 

8   NEW SECTION.  Sec. 101. The legislature intends to enact a state

9   false claims act in order to provide this state with another tool to

10 combat medicaid fraud. The legislature finds that between 1996 and

11    2009 state-initiated false claims acts resulted in over five billion

12    dollars in total recoveries to those states.   The highest recoveries in

13    those   cases were   from claims   relating to billing  fraud, off-label

14    marketing,    and  withholding   safety  information;  these  cases  were

15    primarily    related  to  the   pharmaceuticals   industry  and  hospital

16    networks, hospitals, and medical center&.   By this act, the legislature

17   does not intend to target a certain industry, profession, or retailer

18   of medical   equipment,  or   to place  an undue  burden   on health  care

 

1    professionals.    This   act  is   not  intended  to   harass  health  care

2    professionals, nor is intended to be usd as    a tool to target actions

3    that are related to incidental errors or clerical errors, which should

4    not be considered fraud.   The intent is to use the false claims act to

5    root out significant areas of fraud that result in higher health care

6    costs to this state and to use the false claims act to recover state

7    money that could and should be used to support the medicaid program.

 

 

8                 Sec. 102.   RCW 74.09.210 and 2011 1st sp.s. c 15 s 15 are each

9       amended to read as follows:

 

10        (1) No person, firm, corporation, partnership, association, agency,

11    institution, or other legal entity, but not including an individual

12    public assistance recipient of health care, shall, on behalf of himself

13    or others, obtain or attempt to obtain benefits or payments under this

14    chapter in a greater amount than that to which entitled by means of:

15         (a) A willful false statement;

16        (b) By willful misrepresentation, or by concealment of any material

17    facts; or

18        (c) By  other  fraudulent  scheme  or   device,  including,  but  not

19    limited to:

20         (i) Billing for services, drugs, supplies, or equipment that were

21    unfurnished, of lower quality, or a substitution or misrepresentation

22    of items billed; or

23         (ii) Repeated billing for purportedly covered items, which were not

24   in fact so covered.

25          (2) Any person or entity knowingly’violating any of the provisions

26    of subsection (1) of this section shall be liable for repayment of any

27    excess benefits or payments received, plus interest at the rate and in

28    the manner provided in RCW 43.20B.695.    Such person or other entity

29    shall further, in addition to any other penalties provided by law, be

30   subject   to   civil   penalties.    The   ((secretary or))  director((,  as

31   appropriate,)) or the attorney general may assess civil penalties in an

32   amount not to exceed three times the amount of such excess benefits or

33   payments:  PROVIDED, That these civil penalties shall not apply to any

34   acts or omissions occurring prior to September 1, 1979.    RCW 43.20A.215

35   governs notice of a civil fine assessed by the director and provides

36    the right to an adjudicative proceeding.

 

1        (3) A criminal action need not be brought against a person for that

2    person to be civilly liable under this section.

 

3        (4) In all administrative proceedings under this section, service,

4    adjudicative proceedings, and judicial review of such determinations

5    shall be   in accordance with   chapter   34.05 RCW,   the   administrative

6    procedure act.

 

7        (5) Civil penalties shall be deposited ((in the general fund)) upon

8    their receipt into the medicaid fraud Penalty account established in

9    section 103 of this act.

10        (6) The attorney general may contract with private attorneys and

11    local governments in bringing actions under this section as necessary.

12    NEW SECTION.   Sec. 103. A new section is added to chapter 74.09

13    RCW to read as follows:

14        The   medicaid   fraud   penalty   account   is   created   in   the   state

15    treasury.    All   receipts   from   civil penalties   collected under   RCW

 

16    74.09.210, all receipts received under judgments or settlements that

17    originated under a filing under the federal false claims act, and all

18    receipts received under judgments or settlements that originated under

19    the state medicaid fraud false claims act, chapter 74.— RCW (the new

20    chapter created in section 215 of this act) must be deposited into the

21    account.   Moneys in the account may be spent only after appropriation

22    and   must   be   used   only   for medicaid   services, fraud   detection and

23    prevention activities, recovery of improper payments, and for other

24    medicaid fraud enforcement activities.

25    NEW SECTION.   Sec. 104. A new section is added to chapter 74.09

26    RCW to read as follows:

27        (1) For the purposes of this section:

28        (a) “Employer” means any person, firm, corporation, partnership,

29    association, agency, institution, or other legal entity.

 

30        (b) “Whistleblower” means an employee of an employer that obtains

31    or   attempts to   obtain benefits   or payments   under   this   chapter   in

32    violation of RCW 74.09.210, who in good faith reports a violation of

33    RCW 74.09.210 to the authority.

34        (c) “Workplace reprisal or retaliatory action” includes, but is not

35    limited to:   Denial of adequate staff to fulfill duties; frequent staff

36    changes; frequent and undesirable office changes; refusal to assign

 

1    meaningful work; unwarranted and unsubstantiated report of misconduct

2    under   Title   18  RCW;  unwarranted  and  unsubstantiated   letters  of

3    reprimand   or    unsatisfactory   performance   evaluations;   demotion;

4    reduction in pay; denial of promotion; suspension; dismissal; denial of

5    employment;  or a supervisor or superior behaving   in or encouraging

6    coworkers to behave in a hostile manner toward the whistleblower; or a

7    change in the physical location of the employee’s workplace or a change

8    in the basic nature of the employee’s job, if either are in opposition

9    to the employee’s expressed wish.

10        (2) A whistleblower who has been subjected to workplace reprisal or

11    retaliatory action has the remedies provided under chapter 49.60 RCW.

12    RCW 4.24.500 through 4.24.520, providing certain protection to persons

13    who communicate to government agencies, apply to complaints made under

14    this section.    The identity of a whistleblower who complains, in good

15    faith, to the authority about a suspected violation of RCW 74.09.210

16    may    remain    confidential   if  requested.     The   identity   of  the

17    whistleblower    must    subsequently   remain    confidential   unless   the

18    authority determines that the complaint was not made in good faith.

19         (3) This section does not prohibit an employer from exercising its

20    authority to terminate, suspend, or discipline an employee who engages

21    in workplace reprisal or retaliatory action against a whistleblower.

22    The protections provided to whistleblowers under this chapter do not

23    prevent an employer from:   (a) Terminating, suspending, or disciplining

24    a whistleblower for other lawful purposes; or (b) reducing the hours of

25    employment or terminating employment as a result of the demonstrated

26    inability to meet payroll requirements.   The authority shall determine

27    if the employer cannot meet payroll in cases where a whistleblower has

28   been terminated or had hours of employment reduced due to the inability

29    of a facility to meet payroll.

30         (4) The authority shall adopt rules to implement procedures for

31    filing, investigation, and resolution of whistleblower complaints that

32    are   integrated with   complaint  procedures  under  this   chapter.   The

33    authority   shall  adopt  rules  designed  to  discourage  whistleblower

34    complaints made in bad faith or for retaliatory purposes.

35       NEW SECTION.  Sec. 105. A new section is added to chapter 74.09

36    RCW to read as follows:

37        The following must be medicare providers in order to be paid under

 

1    the medicaid  program:    Providers of   durable medical   equipment  and

 

2 related supplies and providers of   medical supplies and  related
3 services.

 

 

4                                                                                 PART  II

 

5                                                     MEDICAID   FRAUD FALSE   CLAIMS  ACT

 

 

 

6                  NEW   SECTION.      Sec.     201.


Unless  the   context


clearly  requires

 

7 otherwise,  the definitions in   this   section   apply throughout this
8 chapter:

9         (1)(a) “Claim” means any request or demand made   for a medicaid

10    payment under chapter 74.09 RCW, whether under a contract or otherwise,

11    for money or property and whether or not a government entity has title

12    to the money or property, that:          .

13         (i) Is presented to an officer, employee, or agent of a government

14    entity; or

15         (ii) Is made to a contractor, grantee, or other recipient, if the

16    money or property is to be spent or used on the government entity’s

17    behalf or to advance a government entity program or interest, and the

18    government entity:

19         (A) Provides or has provided any portion of the money or property

20    requested or demanded; or

21         (B) Will reimburse such contractor, grantee, or other recipient for

22    any portion of the money or property which is requested or demanded.

23         (b) A “claim” does not include requests or demands for money or

24   property  that   the   government  entity  has  paid  to   an   individual as

25    compensation   for   employment   or   as   an   income  subsidy  with  no

26    restrictions on that individual’s use of the money or property.

27        (2) “Custodian” means   the   custodian,  or   any  deputy  custodian,

28    designated by the attorney general.

29         (3) “Documentary material” includes the original or any copy of any

30    book,  record, report, memorandum,  paper,  communication, tabulation,

31    chart, or other document, or data compilations stored in or accessible

32    through computer or other information retrieval systems, together with

33    instructions and all other materials necessary to use or interpret the

34    data compilations, and any product of discovery.

35         (4) “False claims act investigation” means any inquiry conducted by

 

1    any   false claims act   investigator   for the purpose   of   ascertaining

2    whether any person is or has been engaged in any violation of this

3    chapter.

 

4        (5)   “False   claims   act   investigator”   means   any   attorney   or

5    investigator employed by the state attorney general who is charged with

6    the duty of enforcing or carrying into effect any provision of this

7    chapter, or any officer or employee of the state of Washington acting

8    under the direction and supervision of the attorney or investigator in

9    connection with an investigation pursuai’\t to this chapter.

10        (6) “Government entity” means all Washington state agencies that

11    administer medicaid funded programs under this title.

12        (7)(a) “Knowing” and “knowingly” mean that a person, with respect

13    to information:

 

14        (i) Has actual knowledge of the information;

15        (ii) Acts in deliberate ignorance 9f the truth or falsity of the

16    information; or

 

17        (iii) Acts in reckless disregard of the truth or falsity of the

18    information.

 

19        (b) “Knowing” and “knowingly” do not require proof of specific

 

20    intent to defraud.

21        (8) “Material” means having a naturijl tendency to influence, or be

22    capable of influencing, the payment or receipt of money or property.

 

23         (9) “Obligation” means an established duty, whether or not fixed,

24    arising from an express or implied contractual, grantor-grantee,  or

25    licensor-licensee    relationship,    from    a    fee-based    or    similar

26    relationship, from   statute or   rule, or   from the   retention of   any

27        overpayment.

28                  (10) “Official use” means any use that is consistent with the law,

29    and the rules and policies of the attorney general, including use in

 

30    connection with:    Internal attorney general memoranda and   reports;

31    communications between the attorney general and a federal, state, or

32    local government agency, or a contractor of a federal, state, or local

33    government agency, undertaken in furtherance of an investigation or

34    prosecution of a   case; interviews of any qui tam relator or other

35       witness; oral examinations; depositions; preparation for and response

36    to civil discovery requests; introduction into the record of a case or

37        proceeding; applications, motions, memoranda, and briefs submitted to

38    a court or other tribunal; and communications with attorney general

 

2    parties,  and arbitrators or mediators,  concerning an investigation,

3    case, or proceeding.

4         (11) “Person” means any natural person, partnership, corporation,

5    association, or other legal entity, including any local or political

6    subdivision of a state.

7         (12) “Product of discovery” includes:

8        (a) The original or duplicate of any deposition, interrogatory,

9    document, thing, result of the inspect on of land or other property,

10    examination, or admission, which is obtained by any method of discovery

11    in any judicial or administrative proceeding of an adversarial nature;

12        (b) Any digest, analysis, selection, compilation, or derivation of

13    any item listed in (a) of this subsection; and

14         (c) Any index or other manner of access to any item listed in (a)

15    of this subsection.

16         (13) “Qui tam   action”  is an action brought  by   a person  under

17    section 205 of this act.

18         (14) “Qui tam relator” or   “relator” is a person who brings an

19    action under section 205 of this act.

20    NEW SECTION.   Sec. 202. (1) Subject!o subsections   (2) and (4) of

21    this section, a person is liable to the government entity for a civil

22    penalty of not less than five thousand five hundred dollars and not

23    more   than eleven thousand dollars, plus  three times the amount of

24    damages which the government entity sustains because of the act of that

25    person, if the person:

26         (a) Knowingly presents,  or causes to be presented,  a  false or

27    fraudulent claim for payment or approval;

28         (b) Knowingly makes, uses, or causes to be made or used, a false

29    record or statement material to a false or fraudulent claim;

30         (c) Conspires to commit one or more of the violations in this

31    subsection (1);

32         (d) Has possession, custody, or con!rol of property or money used,

33    or to be used, by the government entity and knowingly delivers, or

34    causes to be delivered, less than all of that money or property;

35         (e) Is authorized to make or deliver a document certifying receipt

36    of   property  used,  or   to  be  used,  by  the   government  entity  and,

 

2    receipt without completely knowing that the information on the receipt

3    is true;

4                  (f) Knowingly buys, or receives as a pledge of an obligation or

I

5        debt, public property from an officer or employee of the government

6        entity who lawfully may not sell or pledge property; or

7                  (g) Knowingly makes, uses, or causes to be made or used, a false

8        record or statement material to an obligation to pay or transmit money

9        or   property   to   the   government   entity,   or   knowingly   conceals   or

10    knowingly and improperly avoids or decr.eases an obligation to pay or

11      transmit money or property to the government entity.

12        (2) The court may assess not less than two times the amount of

 

13    damages which the government entity sustains because of the act of a

 

14    person, if the court finds that:

15        (a) The person committing the violation of subsection (1) of this

16    section   furnished the   Washington   stat.e   attorney   general   with   all

17    information known to him or her about the violation within thirty days

18    after the date on which he or she first obtained the information;

19        (b) The   person   fully cooperated with   any   investigation by   the

 

20    attorney general of the violation; and

21        (c) At the time the person furnished the attorney general with the

22    information about the violation, no crim.inal prosecution, civil action,

23    or administrative action had commenced under this title with respect to

24    the violation, and the person did not have actual knowledge of the

25    existence of an investigation into the violation.

26        (3) A   person violating this   section is liable to the attorney

27    general for the costs of a civil action brought to recover any such

 

28    penalty or damages.

29         (4) For the purposes of determining whether an insurer has a duty

30    to provide a defense or indemnification for an insured and if coverage

31    may   be   denied   if   the   terms   of   the   policy   exclude   coverage   for

32    intentional acts, a violation of subsection (1) of this section is an

33    intentional act.

34        (5) The office of the attorney general must, by   rule, annually

35    adjust   the   civil penalties   established   in   subsection   (1) of   this

36    section so that they are equivalent to the civil penalties provided

37    under the federal false claims act and in accordance with the federal

38    civil penalties inflation adjustment act of 1990.

 

2    chapter is exempt from disclosure under the public records act, chapter

 

3 42.56 RCW, until final disposition and all court ordered seals are
4 lifted.

 

 

5        NEW SECTION.   Sec.   204.    The attorney general must  diligently

6    investigate a violation under section 202 of this act.    If the attorney

7    general finds that a person has violated or is viol ting section 202 of

8    this act, the attorney general may bring a civil action under this

9    section against the person.

 

 

10        NEW SECTION.  Sec. 205.   (1) A person may bring a civil action for

11    a violation of section 202 of this act for the person and for the

12    government entity.  The action may be known as a qui tam action and the

13    person bringing the action as a qui tam relator.    The action must be

14    brought  in the name of the   government  entity.   The action may  be

15    dismissed only if the court, and the ‘attorney general give written

16    consent to the dismissal and their reason for consenting.

17         (2) A relator filing an action under this chapter must serve a copy

18    of the complaint and written disclosure of substantially all material

19    evidence and information the person possesses on the attorney general

20    in electronic format.   The relator must file the complaint in camera.

21    The complaint must remain under seal for at least sixty days, and may

22    not be served on the defendant until the court so orders.    The attorney

23    general may elect to intervene and proceed with the action within sixty

24    days after it receives both the complaint and the material evidence and

25    information.

26         (3) The attorney general may, for good cause shown, move the court

27    for extensions of the time during which the complaint remains under

28   seal   under  subsection   (2) of   this   section.    The   motions  may  be

29    supported by affidavits or other submissions in camera.    The defendant

30    may   not  be  required  to   respond  to any  complaint  filed under  this

31    section until twenty days after the complaint is unsealed and served

32    upon the defendant.

33         (4) If the attorney general does not proceed with the action prior

34    to the expiration of the sixty-day period or any extensions obtained

35    under subsection (3) of this section, then the relator has the right to

36    conduct the action.

 

2    other than the attorney general may intervene or bring a related action

3    based on the facts underlying the pending action.

 

 

4                 NEW SECTION.  Sec. 206.   (1) If the attorney general proceeds with

5    the   qui   tarn  action,  the   attorney  general  shall  have  the   primary

6    responsibility for prosecuting the action, and is not bound by an act

7    of the relator.   The relator has the right to continue as a party to

8    the action, subject to the limitations set forth in subsection (2) of

9    this section.

10         (2)(a) The attorney general may move to dismiss the qui tarn action

11    notwithstanding the objections of the relator if the relator has been

12    notified by the attorney general of the filing of the motion and the

13    court has provided the relator with an opportunity for a hearing on the

14    motion.

15         (b) The attorney general may settle the action with the defendant

16    notwithstanding the objections of the relator if the court determines,

17    after a hearing, that the proposed settlement is fair, adequate, and

18    reasonable under all the circumstances.   Upon a showing of good cause,

19    the hearing may be held in camera.

20         (c) Upon   a  showing  by   the   attorney – general  that   unrestricted

21    participation during the course of the litigation by the relator would

22    interfere with or unduly delay the attorney general’s prosecution of

23    the   case, or would be  repetitious, irrelevant, or   for purposes of

24    harassment, the court may, in its discretion, impose limitations on the

25    relator’s participation, such as:

26         (i) Limiting the number of witnesses the relator may call;

27         (ii) Limiting the length of the testimony of the witnesses;

28         (iii) Limiting the relator’s cross-e.xamination of witnesses; or

29         (iv) Otherwise lirniting the participation by the relator in the

30    litigation.

31         (d) Upon a showing by the defendant that unrestricted participation

32    during   the   course   of   the   litigation by   the   relator  would  be  for

33    purposes of harassment or would cause the defendant undue burden or

34   unnecessary  expense, the   court may   limit  the participation by  the

35    relator in the litigation.

36         (3) If the attorney general elects not to proceed with the qui tarn

37    action,  the relator has the right to conduct the action.    If the

 

1    attorney general so requests, the relator must serve on the attorney

2    general copies of all pleadings filed in the action and shall supply

3    copies   of   all  deposition   transcripts,  at  the   attorney  general’s

4    expense.  When the relator proceeds with the action, the court, without

5    limiting the status and rights of the relator, may nevertheless permit

6    the attorney general to intervene at a later date upon a showing of

7    good cause.

8         (4) Whether or not the attorney general proceeds with the qui tarn

9    action, upon a showing by the attorney general that certain actions of

10    discovery by the relator would interfere with the attorney general’s

11    investigation or prosecution of a crimin.al or civil matter arising out

12    of the same facts, the court may stay such discovery for a period of

13    not more than sixty days.   The showing must be conducted in camera.

14    The court may extend the sixty-day period upon a further showing in

15    camera that the attorney general has pursued   the criminal or civil

16    investigation or proceedings with reasonable diligence and any proposed

17    discovery in the civil action will interfere with the ongoing criminal

18   or civil investigation or proceedings.

19         (5) Notwithstanding section 205 of this act, the attorney general

20    may elect to pursue its claim through any alternate remedy available to

21    the state, including any administrative proceeding to determine a civil

22    money   penalty.    If   any   alternate  remedy  is   pursued  in   another

23    proceeding, the relator has the same rights in the proceeding as the

24    relator would have had if the action had continued under this section.

25    Any finding of fact or conclusion of law made in the other proceeding

26    that has become final is conclusive on all parties to an action under

27    this section.   For purposes of this subsection, a finding or conclusion

28    is final if it has been finally determined on appeal to the appropriate

29    court of the state of Washington, if all time for filing the appeal

30    with   respect  to   the   finding  or   conclusion has  expired,  or  if the

31    finding or conclusion is not subject to judicial review.

 

 

32        NEW SECTION.   Sec. 207.   (1)(a) Subject to (b) of this subsection,

33   if the attorney general proceeds with a qui tarn action, the relator

 

34    must receive at least fifteen percent


.but not more than twenty-five

 

35    percent  of the proceeds  of the action or settlement of the claim,

36    depending    upon   the   extent  to  which  the   relator   substantially

37    contributed to the prosecution of the action.

 

2    primarily

3    information

 

on   disclosures   of

provided  by   the


specific    information,   other   than

relator,  relating  to   allegations  or

 

4    transactions in a criminal, civil, or administrative hearing, in a

5    legislative or administrative report, hearing, audit, or investigation,

6    or from the news media, the court may award an amount it considers

7    appropriate, but in no case more than ten percent of the proceeds,

8    taking into account the significance of the information and the role of

9    the relator in advancing the case to litigation.

10        (c) Any payment to a relator under   (a) or (b) of this subsection

11    must be made  from the proceeds.   The relator must also receive an

12    amount   for reasonable expenses which  the court  finds to have been

13    necessarily incurred, plus reasonable attorneys’ fees and costs.    All

14    expenses, fees, and costs must be awarded against the defendant.

15        (2) If the attorney general does not proceed with a qui tam action,

16    the   relator  shall   receive  an   amount  which  the   court  decides  is

17    reasonable for collecting the civil penalty and damages.    The amount

18   may not be  less than twenty-five percent and not more   than thirty

19    percent of the proceeds of the action or settlement and must be paid

20    out   of the proceeds.  The  relator must  also receive an amount  for

21    reasonable expenses, which the court finds to have been necessarily

22    incurred, plus reasonable attorneys’ fees and costs.    All expenses,

23    fees, and costs must be awarded against the defendant.

24         (3) Whether or not the attorney general proceeds with the qui tam

25    action, if the court finds that the action was brought by a person who

26    planned and initiated the violation of section 202 of this act upon

27    which the action was brought, then the court may, to the extent the

28    court considers appropriate, reduce the share of the proceeds of the

29    action which the person would otherwise receive under subsection (1) or

30    (2) of this section, taking into account the role of that person in

31    advancing   the   case   to   litigation  and  any   relevant  circumstances

32    pertaining to the violation.    If the person bringing the action is

33    convicted of criminal conduct arising from his or her role in the

34    violation of section 202 of this act, that person must be dismissed

35    from the civil action and may not receive any share of the proceeds of

36    the action.  The dismissal may not prejudice the right of the state to

37    continue the action, represented by the attorney general.

 

1                 (4) If the attorney general does ·not proceed   with  the qui tarn

2    action and the relator conducts the action, the court may award to the

3    defendant  reasonable attorneys’  fees and   expenses if the defendant

4    prevails  in the action and the court  finds that the claim of the

5    relator was clearly frivolous, clearly vexatious, or brought primarily

6    for purposes of harassment.

7         (5)   Any   funds   recovered  that  remain   after   calculation  and

8    distribution under subsections (1) through (3) of this section must be

9    deposited  into   the   medicaid  fraud  penalty  account  established  in

10    section 103 of this act.

 

 

11 NEW SECTION. Sec. 208.   (1) In no event may a person bring a qui
12 tarn action which is based upon allegations or transactions which are

13    the subject of a civil suit or an administrative civil money penalty

14    proceeding in which the state is already a party.

15         (2)(a) The   court   must  dismiss  an   action  or   claim  under  this

16    section, unless opposed by the attorney general, if substantially the

17    same allegations or transactions as alleged in the action or claim were

18   publicly disclosed:

19         (i) In a state criminal, civil, or administrative hearing in which

20    the attorney general or other governmental entity is a party;

21         (ii) In a  legislative  report,  or   other  state  report, hearing,

22    audit, or investigation; or

23         (iii) By the news media;

24    unless the action is brought by the attorney general or the relator is

25    an original source of the information.

26         (b) For  purposes  of   this   section,  “original  source” means  an

27   individual who either  (i) prior to a public disclosure under   (a) of

28   this subsection, has voluntarily disclosed to the attorney general the

29    information on which allegations or transactions in a claim are based,

30    or (ii) has knowledge that is independent of, and materially adds to,

31    the   publicly  disclosed  allegations  or   transactions,  and  who  has

32    voluntarily provided the information to the attorney general before

33   filing an action under this section.

34    NEW SECTION.  Sec. 209. (1) Any employee, contractor, or agent is

35    entitled to all relief necessary to make that employee, contractor, or

36    agent whole, if that employee, contractor, or agent, is discharged,

 

2    discriminated against in the terms and conditions of employment because

3    of lawful acts done by the employee, contractor, agent, or associated

4    others in furtherance of an action under this chapter or other efforts

5    to stop one or more violations of this chapter.

6        (2) Relief  under  subsection  (1) of   this   section must  include

7    reinstatement with the same seniority status that employee, contractor,

8    or agent would have had but  for the discrimination, two times the

9    amount of back pay, interest on the back pay, and compensation for any

10    special damages sustained as a result of the discrimination, including

11    litigation costs and reasonable attorneys’ fees, and any and all relief

12    available under RCW 49.60.030(2).   An action under this subsection may

13    be brought in the appropriate superior court of the state of Washington

14    for the relief provided in this subsection.

15         (3) A civil action under this section may not be brought more than

16    three years after the date when the retaliation occurred.

17    NEW SECTION.    Sec. 210. (1) A subpoena requiring the attendance of

18   a witness at a trial or hearing conducted under section 204 or 205 of

19    this act may be served at any place in the state of Washington.

20         (2) A civil action under section 204 or 205 of this act may be

21    brought at any time, without limitation after the date on which the

22    violation of section 202 of this act is committed.

23         (3) If the attorney general elects to intervene and proceed with a

24    qui tam action, the attorney general rnay file its own complaint or

25    amend the complaint of a relator to clarify or add detail to the claims

26    in which the attorney general is intervening and to add any additional

27   claims   with   respect   to which  the   attorney  general  contends  it  is

28    entitled to relief.

29         (4) In any action brought under section 204 or 205 of this act, the

30    attorney general is required to prove ·all essential elements of the

31    cause of action, including damages, by a preponderance of the evidence.

32         (5) Notwithstanding any other provision of law or the rules for

33    superior court, a final judgment rendered in favor of the government

34    entity in any criminal proceeding charging fraud or false statements,

35    whether upon a verdict after trial or upon a plea of guilty or nolo

36    contendere, estops the defendant from denying the essential elements of

 

1    the offense in any action which involves the same transaction as in the

2    criminal proceeding and which is brougRt under section 204 or 205 of

3    this act.

4       NEW SECTION.   Sec. 211. (1) Any action under section 204 or 205 of

5    this act may be brought in the superior court in any county in which

6    the defendant or, in the case of multiple defendants, any one defendant

7    can   be  found,   resides,  transacts  business,  or  in   which  any  act

8    proscribed by section 202 of this act occurred.   The appropriate court

9    must issue a summons as required by the superior court civil rules and

10    service must occur at any place within the state of Washington.

11         (2) The superior courts have jurisdiction over any action brought

12    under the laws of any city or county for the recovery of funds paid by

13    a government entity if the action arises from the same transaction or

14    occurrence as an action brought under section 204 or 205 of this act.

15        (3) With  respect  to   any  local  government  that  is   named  as   a

16    coplaintiff with the state in an action brought under section 205 of

17    this act, a seal on the action ordered by the court under section 205

18   of  this   act  does not  preclude  the   attorney general  or the person

19    bringing the action from serving the complaint, any other pleadings, or

20    the   written   disclosure  of  substantially  all material  evidence  and

21    information possessed by the person bringing the action on the law

22    enforcement authorities that are authorized under the law of the local

23    government to investigate and prosecute the action on behalf of the

24    local government, except that the seal applies to the law enforcement

25    authorities so served to the same exten.t as the seal applies to other

26    parties in the action.

27        NEW SECTION.  Sec. 212. (1)(a) Whenever the attorney general, or

28   a designee, for purposes of this section, has reason to believe that

29    any person may be in possession, custody, or control of any documentary

30    material or information relevant to a Lalse claims act investigation,

31    the attorney general, or a designee, may, before commencing a civil

32    proceeding under section 204 of this act or making an election under

33   section 205 of this act, issue in writing and serve upon the person, a

34    civil investigative demand requiring the person:

35        (i) To produce the documentary material for inspection and copying;

 

2    the documentary material or informationr

3        (iii) To give oral testimony concerning the documentary material or

4    information; or

 

5         (iv) To   furnish any   combination of  such material,  answers, or

6    testimony.

7         (b) The attorney general may delegate the authority to issue civil

8    investigative demands under this subsection   (1).    Whenever a civil

9    investigative demand is an express demand for any product of discovery,

10    the attorney general, the deputy attorney general, or an assistant

11    attorney general must serve, in any manner authorized by this section,

12    a  copy of the demand upon the person  from whom the discovery was

13    obtained and must notify the person to whom the demand is issued of the

14    date on which the copy was served.   Any information obtained by the

15    attorney  general or a designee of the attorney general under this

16    section may be shared with any qui tam relator if the attorney general

17   or designee determines it is necessary as part of any false claims act

18   investigation.

19       (2)(a) Each civil investigative demand issued under subsection (1)

20    of this section must state the nature of the conduct constituting the

21    alleged violation of this chapter which is under investigation, and the

22    applicable provision of law alleged to be violated.

23         (b) If the demand is for the production of documentary material,

24   the demand must:

25         (i) Describe each class of documentary material to be produced with

26    such definiteness and certainty as to permit the material to be fairly

27   identified;

28         (ii) Prescribe a return date for each class which will provide a

29    reasonable period of time within which the material so demanded may be

30   assembled and made available for inspection and copying; and

31        (iii) Identify  the  false claims  act  investigator to whom  such

32    material must be made available.

33         (c) If the demand is for answers to written interrogatories, the

34   demand must:

35        (i) Set forth with specificity the written interrogatories to be

36    answered;

37       (ii)    Prescribe   dates   at   which   time   answers   to    written

38    interrogatories must be submitted; and   ,

 

1                 (iii) Identify the   false   claims law   investigator to   whom   such

2       answers must be submitted.

3                   (d) If the demand is for the giving of oral testimony, the demand

4    must:

5                  (i) Prescribe a date, time, and place at which oral testimony must

6        be commenced;

7                   (ii) Identify a false claims act investigator who must conduct the

8       examination and the custodian to whom the transcript of the examination

9    must be submitted;

10        (iii) Specify that the attendance and testimony are necessary to

11      the conduct of the investigation;

12                  ( iv) Notify the person receiving the demand of the right to be

13    accompanied by an attorney and any other representative; and

14                  (v) Describe the general purpose for which the demand is being

,

15    issued and the general nature of the testimony, including the primary

16    areas of inquiry, which will be taken pursuant to the demand.

17                  (e) Any civil investigative demand issued under this section which

18        is an express demand for any product of discovery is not due until

19    thirty days after a copy of the demand has been served upon the person

 

 

20    from whom the discovery was obtained.

21                  (f) The date prescribed for the


,

commencement of oral testimony

 

22        pursuant to a civil investigative demand issued under this section may

23    not be sooner than six days after the date on which demand is received,

24    unless the attorney general or an assistant attorney general designated

25    by the attorney general determines that exceptional circumstances are

26    present which warrant the commencement of the testimony sooner.

27                   (g) The attorney general may not authorize the issuance under this

28        section of more than one civil investigative demand for oral testimony

29        by the same person unless the person requests otherwise or unless the

30    attorney general, after investigation, notifies that person in writing

31    that an additional demand for oral testimony is necessary.

32         (3) A civil investigative demand issued under subsection (1) or (2)

33        of this section may not   require the production of any documentary

34    material, the submission of any answers to written interrogatories, or

35        the giving of any oral testimony if the material, answers, or testimony

36        would be protected from disclosure under:

37        (a) The standards applicable to subpoenas or subpoenas duces tecum

38        issued by a court to aid in a special inquiry investigation; or

 

1                 (b) The   standards   applicable   to   discovery   requests   under   the

2        superior court civil rules, to the extent that the application of these

3       standards   to   any   demand   is   appropriate   and   consistent   with   the

4    provisions and purposes of this section.

 

5                   ( 4)      Any   demand which   is an express demand   for   any product of

6        discovery supersedes any inconsistent order, rule, or provision of law,

7         other than this section, preventing or restraining disclosure of the

8        product   of discovery to any person.    Disclosure of any product of

9    discovery pursuant to any express demana does not constitute a waiver

10    of any right or privilege which the person making such disclosure may

11      be   entitled   to   invoke   to   resist   discovery   of   trial   preparation

12       materials.

13         (5) Any civil investigative demand issued under this section may be

14        served by a false claims act investigator, or by a commissioned law

15    enforcement official, at any place with1n the state of Washington.

16         (6) Service of any civil investigative demand issued under (a) of

17    this subsection or of any petition filed under subsection (25) of this

18       section may be made upon a partnership, corporation, association, or

 

19    other legal entity by:

20        (a) Delivering an executed copy of the demand or petition to any

21       partner, executive officer, managing agent, or general agent of the

22        partnership,   corporation, association,   or   entity,   or   to   any   agent

23    authorized by appointment or by law to receive service of process on

24    behalf of such partnership, corporation, association, or entity;

25         (b) Delivering an executed copy of the demand or petition to the

26    principal office or place of business of the partnership, corporation,

 

27    association, or entity; or

28                   (c) Depositing an executed copy of the demand or petition in the

29        United   States mail by   registered or certified mail, with   a return

30        receipt   requested,   addressed   to   such   partnership,   corporation,

31    association, or entity at its principal office or place of business.

32         (7) Service of any demand or petition may be made upon any natural

33       person by:

34        (a) Delivering an executed copy of the demand or petition to the

35       person; or

36        (b) Depositing an executed copy of the demand or petition in the

37        United   States mail by   registered or certified mail,   with a   return

 

1    receipt requested, addressed to the person at the person’s residence or

2    principal office or place of business.

3         (8) A   verified  return  by  the   individual  serving  any  civil

4    investigative demand issued under subsection (1) or (2) of this section

5    or any petition filed under subsection (25) of this section setting

6    forth the manner of the service constitutes proof of the service.    In

7    the case of service by registered or certified mail, the return must be

8    accompanied  by   the   return post  office  receipt  of   delivery  of   the

9    demand.

10        (9)(a) The production  of documentary material  in response to a

11    civil investigative demand served under this section must be made under

12    a sworn certificate, in the form as the demand designates, by:

13         (i) In the case of a natural person, the person to whom the demand

14    is directed; or

15        (ii) In the case of a person other than a natural person, a person

16    having  knowledge  of   the   facts  and  circumstances  relating  to  the

17    production and authorized to act on behalf of the person.

18        (b) The certificate must state that all of the documentary material

19    required by the demand and in the possession, custody, or control of

20    the person to whom the demand is directed has been produced and made

21    available   to   the   false  claims  act  investigator  identified  in   the

22    demand.

23         (10) Any person upon whom any civil investigative demand for the

24    production of documentary material has been served under this section

25    shall make such material available for inspection and copying to the

26    false claims act investigator identified in the demand at the principal

27    place of business of the person,  or at another place as the false

28    claims   act  investigator   and  the   person  thereafter  may  agree  and

29    prescribe in writing, or as the court may direct under subsection (25)

30    of this section.   The material must be made available on the return

31    date specified in the demand, or on a later date as the false claims

32    act  investigator may   prescribe  in writing.   The  person  may,  upon

33    written   agreement  between  the   person  and  the   false  claims  act

34    investigator, substitute copies for originals of all or any part of the

35    material.

36         (11)(a) Each interrogatory in a civil investigative demand served

37   under this section must be answered separately and fully in writing

 

1    under oath and must be submitted under a sworn certificate, in the form

2    as the demand designates, by:

 

3        (i) In the case of a natural person, the person to whom the demand

4    is directed; or

 

5        (ii) In the case of a person other than a natural person, the

6    person or persons responsible for answering each interrogatory.

7         (b) If  any   interrogatory  is   objected  to,   the   reasons  for the

8    objection must be stated in the certificate instead of an answer.    The

9    certificate must state that all information required by the demand and

10    in the possession, custody, control, or Knowledge of the person to whom

11    the demand is directed has been submitted.    To the extent that any

12    information is not furnished, the information must be identified and

13    reasons set forth with particularity   regarding the reasons why the

14    information was not furnished.

15         (12)   The   examination   of  any  person   pursuant   to  a  civil

16    investigative demand for oral testimony·served under this section must

17    be   taken   before  an   officer  authorized  to   administer  oaths  and

18   affirmations by the laws of the state of Washington or of the place

19    where the examination is held.   The officer before whom the testimony

20    is to be taken must put the witness on oath or affirmation and must,

21    personally or by someone acting under the direction of the officer and

22    in the officer’s presence, record the testimony of the witness.    The

23    testimony must be recorded and must be transcribed.   When the testimony

24    is fully transcribed, the officer before whom the testimony is taken

25    shall promptly transmit a copy of the transcript of the testimony to

26    the   custodian.    This   subsection  does   not  preclude  the  taking  of

27    testimony by any means authorized by, and in a manner consistent with,

28    the superior court civil rules.

29         (13) The false claims act investigator conducting the examination

30    shall exclude from the place where the examination is held all persons

31    except the person giving the testimony, the attorney for and any other

32    representative  of   the   person  giving  the   testimony,  the  attorney

33    general, any person who may be agreed upon by the attorney for the

34    government and the person giving the testimony, the officer before whom

35    the   testimony  is   to   be   taken,  and   any   stenographer  taking  the

36    testimony.

37       (14) The oral testimony of any person taken pursuant to a civil

38   investigative demand served under this section must be taken in the

 

1    county  within   which  such  person  resides,  is   found,  or  transacts

2    business, or in another place as may be agreed upon by the false claims

3    act investigator conducting the examination and the person.

4         (15) When the testimony is fully transcribed, the false claims act

5    investigator or the officer before who;n the testimony is taken must

6    afford the witness, who may be accompanied by counsel, a reasonable

7    opportunity to examine and read the transcript, unless the examination

8    and   reading  are  waived  by  the   witness.   Any  changes  in   form  or

9    substance   which  the   witness  desires  to   make  must  be  entered  and

10    identified upon the transcript by the officer or the false claims act

11    investigator, with a statement of the r asons given by the witness for

12    making the changes.  The transcript must then be signed by the witness,

13    unless the witness in writing waives the signing, is ill, cannot be

14    found, or refuses to sign.   If the transcript is not signed by the

15    witness    within   thirty  days   after  being  afforded  a  reasonable

16    opportunity  to   examine  it,  the   officer  or   the   false  claims  act

17    investigator must  sign it and state OJl         the record the fact of the

18   waiver,  illness,  absence  of   the witness,  or  the   refusal to   sign,

19    together with the reasons given.

20         (16) The officer before whom the testimony is taken must certify on

21    the transcript that the witness was sworn by the officer and that the

22    transcript is a true record of the testimony given by the witness, and

23    the officer or false claims act investigator must promptly deliver the

24    transcript, or send the transcript by registered or certified mail, to

25    the custodian.

26         (17) Upon payment of reasonable charges therefor, the false claims

27   act investigator must furnish a copy of the transcript to the witness

28    only, except that the attorney general, the deputy attorney general, or

29    an assistant attorney general may, for g9od cause, limit the witness to

30   inspection of the official transcript of the witness’ testimony.

31         (18)(a) Any person compelled to appear for oral testimony under a

32    civil investigative demand issued under subsection (1) or (2) of this

33    section   may   be  accompanied,  represented,  and  advised  by  counsel.

34    Counsel may   advise  the person,  in confidence, with  respect to any

35    question asked of the person.   The pers9n or counsel may object on the

36    record to any question, in whole or in part, and must briefly state for

37    the record the reason for the objection.   An objection may be made,

38    received, and entered upon the record when    it is claimed that the

 

1    person is entitled to refuse to answer the question on the grounds of

2    any constitutional or other legal right or privilege, including the

3   privilege against self-incrimination.    The person may not otherwise

4    object to or refuse to answer any question, and may not directly or

5   through   counsel otherwise  interrupt the   oral examination.    If the

6    person   refuses to answer any question, a special injury proceeding

7    petition may be filed in the superior court under subsection (25) of

8    this   section   for  an   order  compelling  the   person  to   answer  the

9    question.

10         (b) If the person refuses to answer any question on the grounds of

11    the privilege against self-incrimination, the testimony of the person

12    may be compelled in accordance with the provisions of the superior

13    court civil rules.

14        (19) Any   person   appearing  for   oral   testimony  under  a   civil

15    investigative demand issued under subsection (1) or (2) of this section

16    is entitled to the same fees and allowances which are paid to witnesses

17    in the superior courts.

18        (20) The   attorney  general  must  designate  a   false   claims   act

19    investigator to serve as custodian of documentary material, answers to

20    interrogatories, and transcripts of oral testimony received under this

21    section,   and  must  designate   such   additional   false   claims  act

22    investigators as the attorney general determines from time to time to

23    be necessary to serve as deputies to the·custodian.

24        (21)(a)   A   false   claims   act  investigator   who  receives  any

25    documentary material, answers to interrogatories, or transcripts of

26    oral testimony under this section must transmit them to the custodian.

27    The custodian shall take physical possession of the material, answers,

28    or transcripts and is responsible for the use made of them and for the

29    return of documentary material under subsection (23) of this section.

30        (b) The custodian may cause the preparation of the copies of the

31    documentary material, answers to interrogatories, or transcripts of

32    oral testimony as may be required for official use by any false claims

33    act investigator, or employee of the attorney general.    The material,

34   answers, and transcripts may be used by any authorized false claims act

35    investigator or other officer or employee in connection with the taking

36    of oral testimony under this section.

37        (c)(i) Except as otherwise provided in this subsection   (21), no

38    documentary material,  answers to interrogatories, or transcripts of

 

1    oral testimony, or   copies thereof, while  in the possession of the

2    custodian, may be available for examination by any individual other

3    than a false claims act investigator or other officer or employee of

4    the attorney general authorized under (b) of this subsection.

5         (ii)   The   prohibition   in   (c)(i)   of   this   subsection  on   the

6    availability of material, answers, or *transcripts does not apply if

7    consent is given by the person who produced the material, answers, or

8    transcripts, or,   in the case of any product  of discovery produced

9    pursuant to an express demand for the material, consent is given by the

10    person   from   whom   the   discovery  was   obtained.    Nothing  in   this

11    subsection    (c)(ii)   is   intended   to   prevent   disclosure   to   the

12    legislature, including any committee or subcommittee for use by such an

13    agency in furtherance of its statutory responsibilities.

14        (d) While   in   the   possession  of   the   custodian  and  under   the

15    reasonable   terms   and  conditions  as   the   attorney  general  shall

16    prescribe:

17         (i) Documentary material and answers to interrogatories must be

18   available for examination by the person who produced the material or

19    answers,   or by   a   representative of that person  authorized by   that

20    person to examine the material and answers; and

21        (ii)  Transcripts    of   oral   testimony  must   be   available   for

22    examination   by  the   person   who  produced  the   testimony,  or   by  a

23    representative of that person authorized by that person to examine the

24    transcripts.

25        (22) Whenever any official has been designated to appear before any

26    court, special inquiry judge, or state administrative judge in any case

27    or proceeding, the custodian of any documentary material, answers to

28   interrogatories, or transcripts of oral testimony received under this

29    section   may   deliver   to   the   official  the   material,  answers,  or

30    transcripts for official use in connection with any case or proceeding

31    as the official determines to be required.    Upon the completion of

32   such a case or proceeding, the official must return to the custodian

33    any material,  answers,  or   transcripts  so delivered which  have not

34   passed into the control of any court, grand jury, or agency through

35    introduction into the record of such a case or proceeding.

36         (23) If any documentary material has been produced by any person in

37    the course of any false claims act investigation pursuant to a civil

38    investigative demand under this section, and:

 

1         (a) Any   case or proceeding before’the    court or special inquiry

2    judge arising out of the investigation, or any proceeding before any

3    administrative judge involving the material, has been completed; or

4       (b) No case or proceeding in which the material may be used has

5    been   commenced  within   a   reasonable  time   after  completion  of  the

6    examination   and  analysis  of   all   documentary  material  and  other

7    information assembled in the course of the investigation:

8        Then, the custodian shall, upon written request of the person who

9    produced the material, return to the person the material, other than

10    copies furnished to the false claims act investigator under subsection

11    (10) of this section or made for the attorney general under subsection

12    (21)(b) of this section, which has not passed into the control of any

13    court, grand jury, or agency through introduction into the record of

14    the case or proceeding.

15         (24)(a) In the event of the death, disability, or separation from

16    service of the attorney general of the custodian of any documentary

17    material, answers to interrogatories, or transcripts of oral testimony

18   produced pursuant to    civil investigative demand under this section, or

19    in   the   event   of   the   official   reiief  of   the   custodian   from

20    responsibility for the custody and control of the material, answers, or

21    transcripts, the attorney general must promptly:

22         (i) Designate another false claims act investigator to serve as

23    custodian of the material, answers, or transcripts; and

24         (ii) Transmit in writing to the person who produced the material,

25    answers,  or   testimony   notice  of   the ‘identity   and  address  of   the

26    successor so designated.

27         (b) Any   person who is designated to be a successor under this

28    subsection    (24)   has,  with   regard  to   the   material,  answers,  or

29    transcripts, the same duties and responsibilities as were imposed by

30    this section upon that person’s predecessor in office, except that the

31    successor may not be held responsible for any default or dereliction

32    which occurred before that designation.

33         (25)   Whenever   any  person  fails  to   comply  with  any  civil

34   investigative   demand   issued  under  subsection  (1) or   (2) of  this

35    section,   or   whenever  satisfactory  copying  or   reproduction  of   any

36    material requested in the demand cannot be done and the person refuses

37   to   surrender  the material,  the   attorney  general may   file,  in   any

38    superior court of the state of Washington for any county in which the

 

1      person resides, is found, or transacts business, and serve upon the

2    person a petition for an order of the court for the enforcement of the

3        civil investigative demand.

 

4         (26)(a) Any person who has received a civil investigative demand

5    issued under subsection (1) or   (2) of this section may file, in the

6    superior court of the state of Washington for the county within which

,

7    the person resides, is found, or transacts business, and serve upon the

8       false claims act investigator identified in the demand a petition for

9    an order of the court to modify or set aside the demand. In the case

10       of   a   petition   addressed to   an   express   demand   for any   product   of

11      discovery, a petition to modify or set aside the demand may be brought

12        only   in the   district   court   of the Un.ited  States   for the   judicial

13    district in which the proceeding in which the discovery was obtained is

14    or was last pending.   Any petition filed under this subsection (26)(a)

15    must be filed:

16                 ( i) Within thirty days after the date of service of the civil

17    investigative demand, or at any time before the return date specified

18    in the demand, whichever date is earlier; or

19         (ii) Within a longer period as may be prescribed in writing by any

20        false claims act investigator identified in the demand.

21                  (b) The petition must specify each ground upon which the petitioner

 

22    relies in seeking relief under (a) of this subsection, and may be based

23        upon any failure of the demand to comply with the provisions of this

24    section or upon any constitutional or ot.her legal right or privilege of

2 5        the person.    During the pendency of the petition in the court, the

26    court may stay, as it deems proper, the running of the time allowed for

27        compliance with the demand, in whole or in part, except that the person

28        filing the petition shall comply with any portions of the demand not

29    sought to be modified or set aside.

30                   (27) (a) In the case of any civil investigative demand issued under

31    subsection (1) or (2) of this section which is an express demand for

32         any product   of   discovery, the   person   from whom   the discovery was

33       obtained may file, in the superior court of the state of Washington for

34    the county in which the proceeding in which the discovery was obtained

35        is   or   was   last   pending,   and   serve   upon   any   false   claims   act

36        investigator identified in the demand and upon the recipient of the

37        demand, a petition for an order of the court to modify or set aside

 

1    those portions of the demand requirinproduction     of any product of

2    discovery.  Any petition under this subsection (27)(a) must be filed:

3         (i) Within twenty days after the date of service of the civil

4    investigative demand, or at any time before the return date specified

5    in the demand, whichever date is earlier; or

6        (ii) Within a longer period as may be prescribed in writing by any

7    false claims act investigator identified in the demand.

8        (b) The petition must specify each ground upon which the petitioner

9    relies in seeking relief under (a) of this subsection, and may be based

10    upon any failure of the portions of the demand from which relief is

11    sought to comply with the provisions of this section, or upon any

12    constitutional or other legal right or privilege of the petitioner.

13    During the pendency of the petition, tQe court may stay, as it deems

14    proper, compliance with the demand and the running of the time allowed

15    for compliance with the demand.

16         (28) At  any   time during which  any  custodian  is   in custody or

17    control   of   any  documentary  material  or   answers  to   interrogatories

18   produced, or transcripts of oral testimony given, by any person in

19    compliance with any civil investigative.demand issued under subsection

20     (1) or (2) of this section, the person, and in the case of an express

21    demand for any product of discovery, the person from whom the discovery

22    was   obtained,  may   file,   in   the   superior  court  of   the   state  of

23    Washington for the county within which the office of the custodian is

24   situated, and serve upon the custodian, a petition for an order of the

25    court to require the performance by the custodian of any duty imposed

26    upon the custodian by this section.

27         (29) Whenever any petition is filed in any superior court of the

28    state of Washington under this section, the court has jurisdiction to

29    hear and determine the matter so presented, and to enter an order or

30    orders as may be required to carry out the provisions of this section.

31    Any   final order so entered is subject.to    appeal under the rules of

32    appellate procedure.  Any disobedience of any final order entered under

33    this section by any court must be punished as a contempt of the court.

34        (30) The superior court civil rules apply to any petition under

35    this section, to the extent that the rules are not inconsistent with

36    the provisions of this section.

37        (31) Any documentary material, answers to written interrogatories,

 

1    or oral testimony provided under any civil investigative demand issued

2    under subsection (1) or (2) of this section are exempt from disclosure

3    under the public records act, chapter 42.56 RCW.

 

 

4                 NEW SECTION.  Sec. 213.   Beginning November 15, 2012, and annually

5    thereafter, the attorney general in consultation with the health care

6    authority must report results of implementing the medicaid fraud false

7    claims act.  This report must include:

8         (1) The number of attorneys assigned to qui tam initiated actions;

9         (2) The number of cases brought by qui tam actions and indicate how

10    many cases are brought by the attorney general and how many by the qui

11    tam relator without attorney general participation;

12         (3) The results of any actions brought under subsection (2) of this

13    section, delineated by cases brought by.the attorney general and cases

14    brought by the qui tam relator without attorney general participation;

15         (4) The amount of recoveries attributable to the medicaid false

16    claims; and

17         (5) Information  on   the   costs,  attorneys’  fees,   and  any  other

18    expenses incurred by defendants in investigating and defending against

19    qui tam actions, to the extent this information is provided to the

20    attorney general or health care authority.

 

 

21        NEW SECTION.  Sec. 214.   This chapter may be known and cited as the

22    medicaid fraud false claims act.

 

 

23        NEW SECTION.   Sec. 215.    Sections. 201 through 214 of this act

24    constitute a new chapter in Title 74 RCW.

 

 

25        NEW SECTION.   Sec. 216.   A new section is added to chapter 43.131

26    RCW to read as follows:

27        The medicaid fraud false claims act as established under chapter

28    74.– RCW (the new chapter created in sections 201 through 214 of this

29    act) shall be terminated on June 30, 2016, as provided in section 217

30    of this act.

 

 

31        NEW SECTION.   Sec. 217.   A new section is added to chapter 43.131

32    RCW to read as follows:

 

1                The following acts or parts of acts, as now existing or hereafter

2        amended, are each repealed, effective June 30, 2017:

3                   (1) Section 201 of this act;

4                  (2) Section 202 of this act;

5                   (3) Section 203 of this act;

6                   (4) Section 204 of this act;

7                  (5) Section 205 of this act;

8                  (6) Section 206 of this act;

9                   (7) Section 207 of this act;

10        (8) Section 208 of this act;

11                 (9) Section 209 of this act;

12         (10) Section 210 of this act;

13         (11) Section 211 of this act;

14        (12) Section 212 of this act;

15         (13) Section 213 of this act; and

16         (14) Section 214 of this act.

 

 

17        NEW SECTION.    Sec.  218.     This act is necessary for the immediate

18    preservation of the public peace, health, or safety, or support of the

19    state government and its existing public institutions, and takes effect

20    immediately.

 

 

END