“We need this in state government. We know that there is a problem with fraud,” Shreveport Rep. Mike Johnson said Tuesday, urging members of the Senate’s Judiciary B Committee to advance H.B. 987. The bill would allow civil suits to recover government funds obtained by fraud.
“The Attorney General obviously can bring criminal proceedings against someone for defrauding the government, but we don’t currently have in Louisiana law a civil action to go after these folks,” Johnson elaborated.
The bill sets up a process for the Attorney General or a whistleblower to sue the person or company accused of government fraud, with part of the money going to whoever reported the fraud. Committee chair Gary Smith had reservations.
“It’s setting up kind of one of these almost Wild West bounty hunter scenarios, and allowing the Attorney General to be the Wild West sheriff out there, issuing rewards,” Smith observed.
Senator J.P. Morrell made clear he thought this was another bid for more power for this Attorney General.
“You’ve inserted the Attorney General into every step of the claim,” Morrell told Johnson, adding that even if the A.G. says no to suing, he’s still involved if the whistleblower sues.
“You have the requirement that, as the plaintiff pursues their claim, they have to constantly disclose everything they’re doing to the Attorney General,” Morrell pointed out.
Johnson had an explanation.
“You may find the smoking gun in the first stage of a deposition or something, and suddenly the case – while it looked like a bad case early on – suddenly it’s a great case,” Johnson said, by way of example. “So, the idea of disclosing to the Attorney General is to give all us – I mean, the Attorney General is our representative – then the lion’s share of the return comes to the state, and not to just the individual.”
Johnson added, “There’s no intent here to give the Attorney General any new power or authority or anything. We’re just trying to watch taxpayer dollars as best we can.”
But without objection, the bill was deferred.