Sec. 3. False claims.

834 words·~4 min read·/il/chapter-740/act-175/3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Liability for certain acts.

(1)In general, any person who:

(A)knowingly presents, or causes to be presented, a false or fraudulent claim for

payment or approval;

(B)knowingly makes, uses, or causes to be made or used, a false record or statement

material to a false or fraudulent claim;

(C)conspires to commit a violation of subparagraph (A), (B), (D), (E), (F), or (G);

(D)has possession, custody, or control of property or money used, or to be used, by

the State and knowingly delivers, or causes to be delivered, less than all the money or property;

(E)is authorized to make or deliver a document certifying receipt of property used,

or to be used, by the State and, intending to defraud the State, makes or delivers the receipt without completely knowing that the information on the receipt is true;

(F)knowingly buys, or receives as a pledge of an obligation or debt, public

property from an officer or employee of the State, or a member of the Guard, who lawfully may not sell or pledge property; or

(G)knowingly makes, uses, or causes to be made or used, a false record or statement

material to an obligation to pay or transmit money or property to the State, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the State,

is liable to the State for a civil penalty of not less than the minimum amount and not more

than the maximum amount allowed for a civil penalty for a violation of the federal False Claims Act (31 U.S.C. 3729 et seq.) as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461), plus 3 times the amount of damages which the State sustains because of the act of that person. Notwithstanding any other provision, a person is liable to the State for a civil penalty of not less than $5,500 and not more than $11,000, plus 3 times the amount of damages which the State sustains because of the act of that person, when:

(i)the civil action was brought by a private person pursuant to paragraph

(1)of subsection

(b)of Section 4;

(ii)the State did not elect to intervene pursuant to paragraph

(2)of subsection

(b)of Section 4;

(iii)the actual amount of the tax owed to the State is equal to or less than $50,000, which does not include interest, penalties, attorney's fees, costs, or any other amounts owed or paid pursuant to this Act; and

(iv)the violation of this Act relates to or involves a false claim regarding a tax administered by the Department of Revenue, excluding claims, records, or statements made under the Property Tax Code. The penalties in this Section are intended to be remedial rather than punitive, and shall not preclude, nor be precluded by, a criminal prosecution for the same conduct.

(2)A person violating this subsection shall also be liable to the State for the costs

of a civil action brought to recover any such penalty or damages.

(b)Definitions. For purposes of this Section:

(1)The terms "knowing" and "knowingly":

(A)mean that a person, with respect to information:

(i)has actual knowledge of the information;

(ii)acts in deliberate ignorance of the truth or falsity of the information; or

(iii)acts in reckless disregard of the truth or falsity of the information, and

(B)require no proof of specific intent to defraud.

(2)The term "claim":

(A)means any request or demand, whether under a contract or otherwise, for money or

property and whether or not the State has title to the money or property, that

(i)is presented to an officer, employee, or agent of the State; or

(ii)is made to a contractor, grantee, or other recipient, if the money or

property is to be spent or used on the State's behalf or to advance a State program or interest, and if the State:

(I)provides or has provided any portion of the money or property requested

or demanded; or

(II)will reimburse such contractor, grantee, or other recipient for any

portion of the money or property which is requested or demanded; and

(B)does not include requests or demands for money or property that the State has

paid to an individual as compensation for State employment or as an income subsidy with no restrictions on that individual's use of the money or property.

(3)The term "obligation" means an established duty, whether or not fixed, arising from

an express or implied contractual, grantor-grantee, or licensor-licensee relationship, from a fee-based or similar relationship, from statute or regulation, or from the retention of any overpayment.

(4)The term "material" means having a natural tendency to influence, or be capable of

influencing, the payment or receipt of money or property.

(c)Exclusion. This Section does not apply to claims, records, or statements made under the Illinois Income Tax Act.