Ohio proposal would let people sue over fraud against the state

A person who knowingly submits or helps submit a false claim for state payment, or commits another listed form of fraud, would owe civil penalties and damages. A claim includes a request for money or property when the state pays part of it or reimburses the recipient. The usual penalty is $5,000 to $10,000 for each false claim, plus three times the state's losses. A court may use a lower penalty if the person promptly gives the attorney general all known information, fully cooperates, and was unaware of an existing case or investigation. The lower penalty is at least twice the state's losses, plus case costs.

A person could bring a civil case in the state's name over an alleged violation and could receive part of any recovery. The person may not bring this case against the state, a local government, or their officers or employees. The attorney general has at least 60 days to decide whether to take over the case, and a court may allow more time. If the state declines, the person may continue the case. If the state takes the case, the person's share is generally 15% to 25% of the recovery; if it declines, the share is 25% to 30%. A court may reduce or deny a share for a person who planned the fraud, and must dismiss that person's case if they are convicted for their role.

The attorney general would investigate suspected violations and could require relevant records, written answers, or oral testimony before filing a civil case. These powers would apply during an investigation of suspected fraud covered by the proposal. The attorney general must have reason to believe a person has relevant information or records, and a demand must describe the conduct under investigation. A person called to testify may bring a lawyer and generally must receive at least seven days' notice. Investigation materials would generally be kept from public inspection, with exceptions for official use.