March 16, 2010

Qui Tam or False Claims (SB 496)

Oppose SB 496 by Wentworth

  • SB 496 allows private plaintiffs to file lawsuits for qui tam/false claims in the name of the State of Texas and reverses legal reforms passed in the last three legislative sessions.
  • SB 496 will trigger an avalanche of “bounty hunter” lawsuits and lower the amount of money the state can collect while turning good faith disputes over contracts into false claims actions.
  • The Texas Attorney General already has the power to pursue false claims and the system works.
  • SB 496 is also broader than similar federal statutes and an existing state law permitting such actions for Medicaid fraud. The bill contains no limits or legislative oversight on this authority.

BACKGROUND/BILL ANALYSIS

March 8, 2009