Bill > HB4327

This bill establishes a comprehensive False Claims Act for the state of Michigan that provides legal mechanisms to combat fraudulent claims against state and local governments. The bill defines a "false claim" as any claim that is wholly or partially false or fraudulent and outlines specific actions that constitute violations, such as knowingly presenting false claims for payment, making false records or statements, or conspiring to commit fraud. Individuals or entities found in violation can be liable for significant financial penalties, including civil penalties of $6,000 to $12,000 per violation plus triple the amount of damages sustained by the government. The act introduces a "qui tam" provision that allows private citizens (called qui tam plaintiffs) to bring lawsuits on behalf of the government and potentially receive a percentage of recovered funds if the action is successful. The bill also includes strong whistleblower protections, ensuring that employees who report fraudulent activities cannot be discharged, demoted, or otherwise discriminated against for their actions. The legislation provides a 10-year statute of limitations for bringing such actions and gives the attorney general authority to investigate and prosecute false claims, with the ability to promulgate additional rules to implement the act. The bill's primary aim is to deter fraud, protect public resources, and provide a legal framework for investigating and penalizing fraudulent claims against government entities.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4327