SB174: relative to state recoveries of public assistance caused by fraud.

CHAPTER 141

SB 174-FN – FINAL VERSION

2009 SESSION

09-1014

01/10

SENATE BILL 174-FN

AN ACT relative to state recoveries of public assistance caused by fraud.

SPONSORS: Sen. D'Allesandro, Dist 20

COMMITTEE: Judiciary

ANALYSIS

This bill permits an individual, referred to as a relator, to bring an action against a third party for making a false claim for payment of public assistance.

This bill is a request of the department of justice.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

09-1014

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nine

AN ACT relative to state recoveries of public assistance caused by fraud.

Be it Enacted by the Senate and House of Representatives in General Court convened:

141:1 Actions by the Attorney General and Private Persons. RSA 167:61-c, II(e)(2) is repealed and reenacted to read as follows:

(2) Notify the court that it declines to take over the action, in which case the relator who initiated the proceeding may conduct the action. If the state, having elected not to proceed with the action, so requests, it shall be served with copies of all pleadings filed in the action and shall receive copies of all deposition transcripts. The court, without limiting the status and rights of the relator, may subsequently permit the state to intervene upon a showing of good cause.

141:2 Award to Relator. Amend RSA 167:61-e, II to read as follows:

II. Whether or not the state proceeds with the action, if the court finds that the action was brought by a relator who planned and initiated the violation of RSA 167:61-b upon which the action was brought, then the court may, to the extent the court considers appropriate, reduce the share of the proceeds of the action that the relator would otherwise receive under paragraph I, taking into account the role of the relator in advancing the case to litigation and any relevant circumstances pertaining to the violation. If the relator bringing the action is convicted of criminal conduct arising from the relator’s role in the violation of RSA 167:61-b, the relator shall be dismissed from the civil action and shall not receive any share of the proceeds of the action. The dismissal shall not prejudice the right of the state to continue the action represented by the attorney general.

141:3 Award to Relator. Amend RSA 167:61-e, III(c) to read as follows:

(c) That is based upon allegations or transactions that are the subject of a [civil or criminal investigation,] civil suit[,] or an administrative civil money penalty proceeding, in which the state is already a party; or

141:4 New Paragraphs; Award to Relator. Amend RSA 167:61-e by inserting after paragraph IV the following new paragraphs:

V. If the state does not proceed with an action brought by a relator under RSA 167:61-c, the relator bringing the action or settling the claim shall receive an amount that the court decides is reasonable for collecting the civil penalty and damages. The amount shall not be less than 25 percent and not more than 30 percent of the proceeds of the action or settlement and shall be paid out of the proceeds. The relator shall also receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable attorneys fees and costs. All expenses, fees, and costs shall be awarded against the defendant.

VI. If the state does not proceed with an action brought by a relator under RSA 167:61-c and the relator conducts the action, the court may award to the defendant reasonable attorneys fees and expenses if the defendant prevails in the action and the court finds that the claim was clearly frivolous, clearly vexatious, or brought primarily for purposes of harassment.

141:5 Effective Date. This act shall take effect upon its passage.

Approved: June 29, 2009

Effective Date: June 29, 2009