State false claims act

AN ACT Relating to establishing a state false claims act; adding 1
a new chapter to Title 7 RCW; prescribing penalties; and providing an 2
effective date. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. SHORT TITLE. This chapter may be known and 5
cited as the Washington false claims act.6
NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this 7
section apply throughout this chapter unless the context clearly 8
requires otherwise.9
(1)(a) "Claim" means any request or demand made, whether under a 10
contract or otherwise, for money or property and whether or not a 11
state has title to the money or property, that: 12
(i) Is presented to an officer, employee, or agent of the state; 13
or 14
(ii) Is made to a contractor, grantee, or other recipient, if the 15
money or property is to be spent or used on the state's behalf or to 16
advance a state program or interest, and the state:17
(A) Provides or has provided any portion of the money or property 18
requested or demanded; or 19
H-2980.1
HOUSE BILL 2585
State of Washington 69th Legislature 2026 Regular Session
By Representatives Hackney and Pollet
Read first time 01/20/26. Referred to Committee on Civil Rights &
Judiciary.
p. 1 HB 2585
(B) Will reimburse such contractor, grantee, or other recipient 1
for any portion of the money or property which is requested or 2
demanded. 3
(b) A "claim" does not include: 4
(i) Requests or demands for money or property that the state has 5
paid to an individual as compensation for employment or as an income 6
subsidy with no restrictions on that individual's use of the money or 7
property; or 8
(ii) Any claim subject to the provisions of chapter 74.66 RCW.9
(2) "Custodian" means the custodian, or any deputy custodian, 10
designated by the attorney general. 11
(3) "Documentary material" includes the original or any copy of 12
any book, record, report, memorandum, paper, communication, 13
tabulation, chart, or other document, or data compilations stored in 14
or accessible through computer or other information retrieval 15
systems, together with instructions and all other materials necessary 16
to use or interpret the data compilations, and any product of 17
discovery. 18
(4) "False claims act investigation" means any inquiry conducted 19
by any false claims act investigator for the purpose of ascertaining 20
whether any person is or has been engaged in any violation of this 21
chapter. 22
(5) "False claims act investigator" means any attorney or 23
investigator employed by the state attorney general who is charged 24
with the duty of enforcing or carrying into effect any provision of 25
this chapter, or any officer or employee of the state of Washington 26
acting under the direction and supervision of the attorney or 27
investigator in connection with an investigation pursuant to this 28
chapter. 29
(6)(a) "Knowing" and "knowingly" mean that a person, with respect 30
to information: 31
(i) Has actual knowledge of the information; 32
(ii) Acts in deliberate ignorance of the truth or falsity of the 33
information; or 34
(iii) Acts in reckless disregard of the truth or falsity of the 35
information. 36
(b) "Knowing" and "knowingly" do not require proof of specific 37
intent to defraud. 38
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(7) "Material" means having a natural tendency to influence, or 1
be capable of influencing, the payment or receipt of money or 2
property. 3
(8) "Obligation" means an established duty, whether or not fixed, 4
arising from an express or implied contractual, grantor-grantee, or 5
licensor-licensee relationship, from a fee-based or similar 6
relationship, from statute or rule, or from the retention of any 7
overpayment. 8
(9) "Official use" means any use that is consistent with the law, 9
and the rules and policies of the attorney general, including use in 10
connection with: Internal attorney general memoranda and reports; 11
communications between the attorney general and a federal, state, or 12
local government agency, or a contractor of a federal, state, or 13
local government agency, undertaken in furtherance of an 14
investigation or prosecution of a case; interviews of any qui tam 15
relator or other witness; oral examinations; depositions; preparation 16
for and response to civil discovery requests; introduction into the 17
record of a case or proceeding; applications, motions, memoranda, and 18
briefs submitted to a court or other tribunal; and communications 19
with attorney general investigators, auditors, consultants, and 20
experts, the counsel of other parties, and arbitrators or mediators, 21
concerning an investigation, case, or proceeding. 22
(10) "Person" means any natural person, partnership, corporation, 23
association, or other legal entity, including any local or political 24
subdivision of a state. 25
(11) "Product of discovery" includes: 26
(a) The original or duplicate of any deposition, interrogatory, 27
document, thing, result of the inspection of land or other property, 28
examination, or admission, which is obtained by any method of 29
discovery in any judicial or administrative proceeding of an 30
adversarial nature; 31
(b) Any digest, analysis, selection, compilation, or derivation 32
of any item listed in (a) of this subsection; and 33
(c) Any index or other manner of access to any item listed in (a) 34
of this subsection. 35
(12) "Qui tam action" is an action brought by a person under 36
section 6 of this act. 37
(13) "Qui tam relator" or "relator" is a person who brings an 38
action under section 6 of this act. 39
p. 3 HB 2585
(14) "State" means the state of Washington and any department, 1
commission, agency, or instrumentality of the state of Washington.2
NEW SECTION. Sec. 3. CIVIL PENALTY— FALSE OR FRAUDULENT CLAIMS. 3
(1) Subject to subsections (2) and (4) of this section, a person is 4
liable to the state for a civil penalty of not less than the greater 5
of $14,308 or the minimum inflation adjusted penalty amount imposed 6
as provided by 31 U.S.C. Sec. 3729 (a) and not more than the greater 7
of $28,619 or the maximum inflation adjusted penalty amount imposed 8
as provided by 31 U.S.C. Sec. 3729 (a), plus three times the amount of 9
damages which the state sustains because of the act of that person, 10
if the person:11
(a) Knowingly presents, or causes to be presented, a false or 12
fraudulent claim for payment or approval; 13
(b) Knowingly makes, uses, or causes to be made or used, a false 14
record or statement material to a false or fraudulent claim;15
(c) Conspires to commit one or more of the violations in this 16
subsection (1); 17
(d) Has possession, custody, or control of property or money 18
used, or to be used, by the state and knowingly delivers, or causes 19
to be delivered, less than all of that money or property;20
(e) Is authorized to make or deliver a document certifying 21
receipt of property used, or to be used, by the state and, intending 22
to defraud the state, makes or delivers the receipt without 23
completely knowing that the information on the receipt is true;24
(f) Knowingly buys, or receives as a pledge of an obligation or 25
debt, public property from an officer or employee of the state who 26
lawfully may not sell or pledge property; or 27
(g) Knowingly makes, uses, or causes to be made or used a false 28
record or statement material to an obligation to pay or transmit 29
money or property to the state, or knowingly conceals or knowingly 30
and improperly avoids or decreases an obligation to pay or transmit 31
money or property to the state. 32
(2) The court may assess not less than two times the amount of 33
damages which the state sustains because of the act of a person, if 34
the court finds that: 35
(a) The person committing the violation of subsection (1) of this 36
section furnished the Washington state attorney general with all 37
information known to him or her about the violation within 30 days 38
after the date on which he or she first obtained the information;39
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(b) The person fully cooperated with any investigation by the 1
attorney general of the violation; and 2
(c) At the time the person furnished the attorney general with 3
the information about the violation, no criminal prosecution, civil 4
action, or administrative action had commenced under this title with 5
respect to the violation, and the person did not have actual 6
knowledge of the existence of an investigation into the violation.7
(3) A person violating this section is liable to the attorney 8
general for the costs of a civil action brought to recover any such 9
penalty or damages. 10
(4) For the purposes of determining whether an insurer has a duty 11
to provide a defense or indemnification for an insured and if 12
coverage may be denied if the terms of the policy exclude coverage 13
for intentional acts, a violation of subsection (1) of this section 14
is an intentional act. 15
NEW SECTION. Sec. 4. PUBLIC RECORDS ACT EXEMPTION. Any 16
information furnished pursuant to this chapter is exempt from public 17
inspection and copying under the public records act, chapter 42.56 18
RCW, until final disposition and all court-ordered seals are lifted.19
NEW SECTION. Sec. 5. ATTORNEY GENERAL — INVESTIGATION— CIVIL 20
ACTION. The attorney general must diligently investigate a violation 21
under section 3 of this act. If the attorney general finds that a 22
person has violated or is violating section 3 of this act, the 23
attorney general may bring a civil action under this section against 24
the person.25
NEW SECTION. Sec. 6. QUI TAM ACTION— RELATOR RIGHTS AND DUTIES. 26
(1) A person may bring a civil action for a violation of section 3 of 27
this act for the person and for the state. The action may be known as 28
a qui tam action and the person bringing the action as a qui tam 29
relator. The action must be brought in the name of the state. The 30
action may be dismissed only if the court and the attorney general 31
give written consent to the dismissal and their reason for 32
consenting.33
(2) A relator filing an action under this chapter must serve a 34
copy of the complaint and written disclosure of substantially all 35
material evidence and information the person possesses on the 36
attorney general in electronic format. The relator must file the 37
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complaint in camera. The complaint must remain under seal for at 1
least 60 days, and may not be served on the defendant until the court 2
so orders. The attorney general may elect to intervene and proceed 3
with the action within 60 days after it receives both the complaint 4
and the material evidence and information. 5
(3) The attorney general may, for good cause shown, move the 6
court for extensions of the time during which the complaint remains 7
under seal under subsection (2) of this section. The motions may be 8
supported by affidavits or other submissions in camera. The defendant 9
may not be required to respond to any complaint filed under this 10
section until 20 days after the complaint is unsealed and served upon 11
the defendant. 12
(4) If the attorney general does not proceed with the action 13
prior to the expiration of the 60-day period or any extensions 14
obtained under subsection (3) of this section, then the relator has 15
the right to conduct the action. 16
(5) When a person brings an action under this section, no person 17
other than the attorney general may intervene or bring a related 18
action based on the facts underlying the pending action.19
NEW SECTION. Sec. 7. QUI TAM ACTION— ATTORNEY GENERAL AUTHORITY. 20
(1) If the attorney general proceeds with the qui tam action, the 21
attorney general shall have the primary responsibility for 22
prosecuting the action, and is not bound by an act of the relator. 23
The relator has the right to continue as a party to the action, 24
subject to the limitations set forth in subsection (2) of this 25
section.26
(2)(a) The attorney general may move to dismiss the qui tam 27
action notwithstanding the objections of the relator if the relator 28
has been notified by the attorney general of the filing of the motion 29
and the court has provided the relator with an opportunity for a 30
hearing on the motion. 31
(b) The attorney general may settle the action with the defendant 32
notwithstanding the objections of the relator if the court 33
determines, after a hearing, that the proposed settlement is fair, 34
adequate, and reasonable under all the circumstances. Upon a showing 35
of good cause, the hearing may be held in camera. 36
(c) Upon a showing by the attorney general that unrestricted 37
participation during the course of the litigation by the relator 38
would interfere with or unduly delay the attorney general's 39
p. 6 HB 2585
prosecution of the case, or would be repetitious, irrelevant, or for 1
purposes of harassment, the court may, in its discretion, impose 2
limitations on the relator's participation, such as:3
(i) Limiting the number of witnesses the relator may call;4
(ii) Limiting the length of the testimony of the witnesses;5
(iii) Limiting the relator's cross-examination of witnesses; or6
(iv) Otherwise limiting the participation by the relator in the 7
litigation. 8
(d) Upon a showing by the defendant that unrestricted 9
participation during the course of the litigation by the relator 10
would be for purposes of harassment or would cause the defendant 11
undue burden or unnecessary expense, the court may limit the 12
participation by the relator in the litigation. 13
(3) If the attorney general elects not to proceed with the qui 14
tam action, the relator has the right to conduct the action. If the 15
attorney general so requests, the relator must serve on the attorney 16
general copies of all pleadings filed in the action and shall supply 17
copies of all deposition transcripts, at the attorney general's 18
expense. When the relator proceeds with the action, the court, 19
without limiting the status and rights of the relator, may 20
nevertheless permit the attorney general to intervene at a later date 21
upon a showing of good cause. 22
(4) Whether or not the attorney general proceeds with the qui tam 23
action, upon a showing by the attorney general that certain actions 24
of discovery by the relator would interfere with the attorney 25
general's investigation or prosecution of a criminal or civil matter 26
arising out of the same facts, the court may stay such discovery for 27
a period of not more than 60 days. The showing must be conducted in 28
camera. The court may extend the 60-day period upon a further showing 29
in camera that the attorney general has pursued the criminal or civil 30
investigation or proceedings with reasonable diligence and any 31
proposed discovery in the civil action will interfere with the 32
ongoing criminal or civil investigation or proceedings.33
(5) Notwithstanding section 6 of this act, the attorney general 34
may elect to pursue its claim through any alternate remedy available 35
to the state, including any administrative proceeding to determine a 36
civil money penalty. If any alternate remedy is pursued in another 37
proceeding, the relator has the same rights in the proceeding as the 38
relator would have had if the action had continued under this 39
section. Any finding of fact or conclusion of law made in the other 40
p. 7 HB 2585
proceeding that has become final is conclusive on all parties to an 1
action under this section. For purposes of this subsection, a finding 2
or conclusion is final if it has been finally determined on appeal to 3
the appropriate court of the state of Washington, if all time for 4
filing the appeal with respect to the finding or conclusion has 5
expired, or if the finding or conclusion is not subject to judicial 6
review. 7
NEW SECTION. Sec. 8. QUI TAM ACTION — AWARD— PROCEEDS OF ACTION 8
OR SETTLEMENT OF CLAIM. (1)(a) Subject to (b) of this subsection, if 9
the attorney general proceeds with a qui tam action, the relator must 10
receive at least 15 percent but not more than 25 percent of the 11
proceeds of the action or settlement of the claim, depending upon the 12
extent to which the relator substantially contributed to the 13
prosecution of the action.14
(b) Where the action is one which the court finds to be based 15
primarily on disclosures of specific information, other than 16
information provided by the relator, relating to allegations or 17
transactions in a criminal, civil, or administrative hearing, in a 18
legislative or administrative report, hearing, audit, or 19
investigation, or from the news media, the court may award an amount 20
it considers appropriate, but in no case more than 10 percent of the 21
proceeds, taking into account the significance of the information and 22
the role of the relator in advancing the case to litigation.23
(c) Any payment to a relator under (a) or (b) of this subsection 24
must be made from the proceeds. The relator must also receive an 25
amount for reasonable expenses which the court finds to have been 26
necessarily incurred, plus reasonable attorneys' fees and costs. All 27
expenses, fees, and costs must be awarded against the defendant.28
(2) If the attorney general does not proceed with a qui tam 29
action, the relator shall receive an amount which the court decides 30
is reasonable for collecting the civil penalty and damages. The 31
amount may not be less than 25 percent and not more than 30 percent 32
of the proceeds of the action or settlement and must be paid out of 33
the proceeds. The relator must also receive an amount for reasonable 34
expenses that the court finds to have been necessarily incurred, plus 35
reasonable attorneys' fees and costs. All expenses, fees, and costs 36
must be awarded against the defendant. 37
(3) Whether or not the attorney general proceeds with the qui tam 38
action, if the court finds that the action was brought by a person 39
p. 8 HB 2585
who planned and initiated the violation of section 3 of this act upon 1
which the action was brought, then the court may, to the extent the 2
court considers appropriate, reduce the share of the proceeds of the 3
action which the person would otherwise receive under subsection (1) 4
or (2) of this section, taking into account the role of that person 5
in advancing the case to litigation and any relevant circumstances 6
pertaining to the violation. If the person bringing the action is 7
convicted of criminal conduct arising from his or her role in the 8
violation of section 3 of this act, that person must be dismissed 9
from the civil action and may not receive any share of the proceeds 10
of the action. The dismissal may not prejudice the right of the state 11
to continue the action, represented by the attorney general.12
(4) If the attorney general does not proceed with the qui tam 13
action and the relator conducts the action, the court may award to 14
the defendant reasonable attorneys' fees and expenses if the 15
defendant prevails in the action and the court finds that the claim 16
of the relator was clearly frivolous, clearly vexatious, or brought 17
primarily for purposes of harassment. 18
(5) Any funds recovered that remain after calculation and 19
distribution under subsections (1) through (3) of this section must 20
be remitted to the state treasurer and deposited into the state 21
general fund. 22
NEW SECTION. Sec. 9. QUI TAM ACTION — RESTRICTIONS— DISMISSAL. 23
(1) In no event may a person bring a qui tam action which is based 24
upon allegations or transactions that are the subject of a civil suit 25
or an administrative civil money penalty proceeding in which the 26
state is already a party.27
(2)(a) Except as provided in (b) of this subsection, the court 28
must dismiss an action or claim under this section, unless opposed by 29
the attorney general, if substantially the same allegations or 30
transactions as alleged in the action or claim were publicly 31
disclosed: 32
(i) In a state criminal, civil, or administrative hearing in 33
which the attorney general or other state entity is a party;34
(ii) In a legislative report, or other state report, hearing, 35
audit, or investigation; or 36
(iii) By the news media. 37
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(b) Dismissal of an action is not required under (a) of this 1
subsection if the action is brought by the attorney general or the 2
relator is an original source of the information. 3
(3) For purposes of this section, "original source" means an 4
individual who either: 5
(a) Prior to a public disclosure under (a) of this subsection, 6
has voluntarily disclosed to the attorney general the information on 7
which allegations or transactions in a claim are based; or8
(b) Has knowledge that is independent of, and materially adds to, 9
the publicly disclosed allegations or transactions, and who has 10
voluntarily provided the information to the attorney general before 11
filing an action under this section. 12
NEW SECTION. Sec. 10. WHISTLEBLOWER RELIEF. (1) Any employee, 13
contractor, or agent is entitled to all relief necessary to make that 14
employee, contractor, or agent whole, if that employee, contractor, 15
or agent is discharged, demoted, suspended, threatened, harassed, or 16
in any other manner discriminated against in the terms and conditions 17
of employment because of lawful acts done by the employee, 18
contractor, agent, or associated others in furtherance of an action 19
under this chapter or other efforts to stop one or more violations of 20
this chapter.21
(2) Relief under subsection (1) of this section must include 22
reinstatement with the same seniority status that employee, 23
contractor, or agent would have had but for the discrimination, two 24
times the amount of back pay, interest on the back pay, and 25
compensation for any special damages sustained as a result of the 26
discrimination, including litigation costs and reasonable attorneys' 27
fees, and any and all relief available under RCW 49.60.030(2). An 28
action under this subsection may be brought in the appropriate 29
superior court of the state of Washington for the relief provided in 30
this subsection. 31
(3) A civil action under this section may not be brought more 32
than three years after the date when the retaliation occurred.33
NEW SECTION. Sec. 11. PROCEDURE FOR CIVIL ACTIONS. (1) A 34
subpoena requiring the attendance of a witness at a trial or hearing 35
conducted under section 5 or 6 of this act may be served at any place 36
in the state of Washington.37
p. 10 HB 2585
(2) A civil action under section 5 or 6 of this act must be 1
brought within the later of: (a) Six years after the date of the 2
violation; or (b) three years after the date when facts material to 3
the right of action are known or reasonably should have been known by 4
the state official charged with responsibility to act in the 5
circumstances, but in no event more than 10 years after the date on 6
which the violation is committed. 7
(3) If the attorney general elects to intervene and proceed with 8
a qui tam action, the attorney general may file its own complaint or 9
amend the complaint of a relator to clarify or add detail to the 10
claims in which the attorney general is intervening and to add any 11
additional claims with respect to which the attorney general contends 12
it is entitled to relief. For statute of limitations purposes, any 13
such pleading by the attorney general shall relate back to the filing 14
date of the complaint of the person who originally brought the 15
action, to the extent that the attorney general's claim arises out of 16
the conduct, transactions, or occurrences set forth, or attempted to 17
be set forth, in the prior complaint of that person.18
(4) In any action brought under section 5 or 6 of this act, the 19
attorney general is required to prove all essential elements of the 20
cause of action, including damages, by a preponderance of the 21
evidence. 22
(5) Notwithstanding any other provision of law or the rules for 23
superior court, a final judgment rendered in favor of the state in 24
any criminal proceeding charging fraud or false statements, whether 25
upon a verdict after trial or upon a plea of guilty or nolo 26
contendere, estops the defendant from denying the essential elements 27
of the offense in any action which involves the same transaction as 28
in the criminal proceeding and which is brought under section 5 or 6 29
of this act. 30
NEW SECTION. Sec. 12. JURISDICTION— SEAL ON ACTION. (1) Any 31
action under section 5 or 6 of this act may be brought in the 32
superior court in any county in which the defendant or, in the case 33
of multiple defendants, any one defendant can be found, resides, 34
transacts business, or in which any act proscribed by section 3 of 35
this act occurred. The appropriate court must issue a summons as 36
required by the superior court civil rules and service must occur at 37
any place within the state of Washington.38
p. 11 HB 2585
(2) The superior courts have jurisdiction over any action brought 1
under the laws of any city or county for the recovery of funds paid 2
by the state if the action arises from the same transaction or 3
occurrence as an action brought under section 5 or 6 of this act.4
(3) With respect to any local government that is named as a 5
coplaintiff with the state in an action brought under section 6 of 6
this act, a seal on the action ordered by the court under section 6 7
of this act does not preclude the attorney general or the person 8
bringing the action from serving the complaint, any other pleadings, 9
or the written disclosure of substantially all material evidence and 10
information possessed by the person bringing the action on the law 11
enforcement authorities that are authorized under the law of the 12
local government to investigate and prosecute the action on behalf of 13
the local government, except that the seal applies to the law 14
enforcement authorities so served to the same extent as the seal 15
applies to other parties in the action. 16
NEW SECTION. Sec. 13. CIVIL INVESTIGATIVE DEMANDS. (1)(a) 17
Whenever the attorney general, or a designee, for purposes of this 18
section, has reason to believe that any person may be in possession, 19
custody, or control of any documentary material or information 20
relevant to a false claims act investigation, the attorney general, 21
or a designee, may, before commencing a civil proceeding under 22
section 5 of this act or making an election under section 6 of this 23
act, issue in writing and serve upon the person a civil investigative 24
demand requiring the person:25
(i) To produce the documentary material for inspection and 26
copying; 27
(ii) To answer in writing written interrogatories with respect to 28
the documentary material or information; 29
(iii) To give oral testimony concerning the documentary material 30
or information; or 31
(iv) To furnish any combination of such material, answers, or 32
testimony. 33
(b) The attorney general may delegate the authority to issue 34
civil investigative demands under this subsection (1). Whenever a 35
civil investigative demand is an express demand for any product of 36
discovery, the attorney general, the deputy attorney general, or an 37
assistant attorney general must serve, in any manner authorized by 38
this section, a copy of the demand upon the person from whom the 39
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discovery was obtained and must notify the person to whom the demand 1
is issued of the date on which the copy was served. Any information 2
obtained by the attorney general or a designee of the attorney 3
general under this section may be shared with any qui tam relator if 4
the attorney general or designee determines it is necessary as part 5
of any false claims act investigation. 6
(2)(a) Each civil investigative demand issued under subsection 7
(1) of this section must state the nature of the conduct constituting 8
the alleged violation of this chapter which is under investigation, 9
and the applicable provision of law alleged to be violated.10
(b) If the demand is for the production of documentary material, 11
the demand must: 12
(i) Describe each class of documentary material to be produced 13
with such definiteness and certainty as to permit the material to be 14
fairly identified; 15
(ii) Prescribe a return date for each class which will provide a 16
reasonable period of time within which the material so demanded may 17
be assembled and made available for inspection and copying; and18
(iii) Identify the false claims act investigator to whom such 19
material must be made available. 20
(c) If the demand is for answers to written interrogatories, the 21
demand must: 22
(i) Set forth with specificity the written interrogatories to be 23
answered; 24
(ii) Prescribe dates at which time answers to written 25
interrogatories must be submitted; and 26
(iii) Identify the false claims law investigator to whom such 27
answers must be submitted. 28
(d) If the demand is for the giving of oral testimony, the demand 29
must: 30
(i) Prescribe a date, time, and place at which oral testimony 31
must be commenced; 32
(ii) Identify a false claims act investigator who must conduct 33
the examination and the custodian to whom the transcript of the 34
examination must be submitted; 35
(iii) Specify that the attendance and testimony are necessary to 36
the conduct of the investigation; 37
(iv) Notify the person receiving the demand of the right to be 38
accompanied by an attorney and any other representative; and39
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(v) Describe the general purpose for which the demand is being 1
issued and the general nature of the testimony, including the primary 2
areas of inquiry, which will be taken pursuant to the demand.3
(e) Any civil investigative demand issued under this section 4
which is an express demand for any product of discovery is not due 5
until 30 days after a copy of the demand has been served upon the 6
person from whom the discovery was obtained. 7
(f) The date prescribed for the commencement of oral testimony 8
pursuant to a civil investigative demand issued under this section 9
may not be sooner than six days after the date on which demand is 10
received, unless the attorney general or an assistant attorney 11
general designated by the attorney general determines that 12
exceptional circumstances are present which warrant the commencement 13
of the testimony sooner. 14
(g) The attorney general may not authorize the issuance under 15
this section of more than one civil investigative demand for oral 16
testimony by the same person unless the person requests otherwise or 17
unless the attorney general, after investigation, notifies that 18
person in writing that an additional demand for oral testimony is 19
necessary. 20
(3) A civil investigative demand issued under subsection (1) or 21
(2) of this section may not require the production of any documentary 22
material, the submission of any answers to written interrogatories, 23
or the giving of any oral testimony if the material, answers, or 24
testimony would be protected from disclosure under:25
(a) The standards applicable to subpoenas or subpoenas duces 26
tecum issued by a court to aid in a special inquiry investigation; or27
(b) The standards applicable to discovery requests under the 28
superior court civil rules, to the extent that the application of 29
these standards to any demand is appropriate and consistent with the 30
provisions and purposes of this section. 31
(4) Any demand which is an express demand for any product of 32
discovery supersedes any inconsistent order, rule, or provision of 33
law, other than this section, preventing or restraining disclosure of 34
the product of discovery to any person. Disclosure of any product of 35
discovery pursuant to any express demand does not constitute a waiver 36
of any right or privilege which the person making such disclosure may 37
be entitled to invoke to resist discovery of trial preparation 38
materials. 39
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(5) Any civil investigative demand issued under this section may 1
be served by a false claims act investigator, or by a commissioned 2
law enforcement official, at any place within the state of 3
Washington. 4
(6) Service of any civil investigative demand issued under (a) of 5
this subsection or of any petition filed under subsection (25) of 6
this section may be made upon a partnership, corporation, 7
association, or other legal entity by: 8
(a) Delivering an executed copy of the demand or petition to any 9
partner, executive officer, managing agent, or general agent of the 10
partnership, corporation, association, or entity, or to any agent 11
authorized by appointment or by law to receive service of process on 12
behalf of such partnership, corporation, association, or entity;13
(b) Delivering an executed copy of the demand or petition to the 14
principal office or place of business of the partnership, 15
corporation, association, or entity; or 16
(c) Depositing an executed copy of the demand or petition in the 17
United States mail by registered or certified mail, with a return 18
receipt requested, addressed to such partnership, corporation, 19
association, or entity at its principal office or place of business.20
(7) Service of any demand or petition may be made upon any 21
natural person by: 22
(a) Delivering an executed copy of the demand or petition to the 23
person; or 24
(b) Depositing an executed copy of the demand or petition in the 25
United States mail by registered or certified mail, with a return 26
receipt requested, addressed to the person at the person's residence 27
or principal office or place of business. 28
(8) A verified return by the individual serving any civil 29
investigative demand issued under subsection (1) or (2) of this 30
section or any petition filed under subsection (25) of this section 31
setting forth the manner of the service constitutes proof of the 32
service. In the case of service by registered or certified mail, the 33
return must be accompanied by the return post office receipt of 34
delivery of the demand. 35
(9)(a) The production of documentary material in response to a 36
civil investigative demand served under this section must be made 37
under a sworn certificate, in the form as the demand designates, by:38
(i) In the case of a natural person, the person to whom the 39
demand is directed; or 40
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(ii) In the case of a person other than a natural person, a 1
person having knowledge of the facts and circumstances relating to 2
the production and authorized to act on behalf of the person.3
(b) The certificate must state that all of the documentary 4
material required by the demand and in the possession, custody, or 5
control of the person to whom the demand is directed has been 6
produced and made available to the false claims act investigator 7
identified in the demand. 8
(10) Any person upon whom any civil investigative demand for the 9
production of documentary material has been served under this section 10
shall make such material available for inspection and copying to the 11
false claims act investigator identified in the demand at the 12
principal place of business of the person, or at another place as the 13
false claims act investigator and the person thereafter may agree and 14
prescribe in writing, or as the court may direct under subsection 15
(25) of this section. The material must be made available on the 16
return date specified in the demand, or on a later date as the false 17
claims act investigator may prescribe in writing. The person may, 18
upon written agreement between the person and the false claims act 19
investigator, substitute copies for originals of all or any part of 20
the material. 21
(11)(a) Each interrogatory in a civil investigative demand served 22
under this section must be answered separately and fully in writing 23
under oath and must be submitted under a sworn certificate, in the 24
form as the demand designates, by: 25
(i) In the case of a natural person, the person to whom the 26
demand is directed; or 27
(ii) In the case of a person other than a natural person, the 28
person or persons responsible for answering each interrogatory.29
(b) If any interrogatory is objected to, the reasons for the 30
objection must be stated in the certificate instead of an answer. The 31
certificate must state that all information required by the demand 32
and in the possession, custody, control, or knowledge of the person 33
to whom the demand is directed has been submitted. To the extent that 34
any information is not furnished, the information must be identified 35
and reasons set forth with particularity regarding the reasons why 36
the information was not furnished. 37
(12) The examination of any person pursuant to a civil 38
investigative demand for oral testimony served under this section 39
must be taken before an officer authorized to administer oaths and 40
p. 16 HB 2585
affirmations by the laws of the state of Washington or of the place 1
where the examination is held. The officer before whom the testimony 2
is to be taken must put the witness on oath or affirmation and must, 3
personally or by someone acting under the direction of the officer 4
and in the officer's presence, record the testimony of the witness. 5
The testimony must be recorded and must be transcribed. When the 6
testimony is fully transcribed, the officer before whom the testimony 7
is taken shall promptly transmit a copy of the transcript of the 8
testimony to the custodian. This subsection does not preclude the 9
taking of testimony by any means authorized by, and in a manner 10
consistent with, the superior court civil rules. 11
(13) The false claims act investigator conducting the examination 12
shall exclude from the place where the examination is held all 13
persons except the person giving the testimony, the attorney for and 14
any other representative of the person giving the testimony, the 15
attorney general, any person who may be agreed upon by the attorney 16
for the government and the person giving the testimony, the officer 17
before whom the testimony is to be taken, and any stenographer taking 18
the testimony. 19
(14) The oral testimony of any person taken pursuant to a civil 20
investigative demand served under this section must be taken in the 21
county within which such person resides, is found, or transacts 22
business, or in another place as may be agreed upon by the false 23
claims act investigator conducting the examination and the person.24
(15) When the testimony is fully transcribed, the false claims 25
act investigator or the officer before whom the testimony is taken 26
must afford the witness, who may be accompanied by counsel, a 27
reasonable opportunity to examine and read the transcript, unless the 28
examination and reading are waived by the witness. Any changes in 29
form or substance which the witness desires to make must be entered 30
and identified upon the transcript by the officer or the false claims 31
act investigator, with a statement of the reasons given by the 32
witness for making the changes. The transcript must then be signed by 33
the witness, unless the witness in writing waives the signing, is 34
ill, cannot be found, or refuses to sign. If the transcript is not 35
signed by the witness within 30 days after being afforded a 36
reasonable opportunity to examine it, the officer or the false claims 37
act investigator must sign it and state on the record the fact of the 38
waiver, illness, absence of the witness, or the refusal to sign, 39
together with the reasons given. 40
p. 17 HB 2585
(16) The officer before whom the testimony is taken must certify 1
on the transcript that the witness was sworn by the officer and that 2
the transcript is a true record of the testimony given by the 3
witness, and the officer or false claims act investigator must 4
promptly deliver the transcript, or send the transcript by registered 5
or certified mail, to the custodian. 6
(17) Upon payment of reasonable charges therefor, the false 7
claims act investigator must furnish a copy of the transcript to the 8
witness only, except that the attorney general, the deputy attorney 9
general, or an assistant attorney general may, for good cause, limit 10
the witness to inspection of the official transcript of the witness' 11
testimony. 12
(18)(a) Any person compelled to appear for oral testimony under a 13
civil investigative demand issued under subsection (1) or (2) of this 14
section may be accompanied, represented, and advised by counsel. 15
Counsel may advise the person, in confidence, with respect to any 16
question asked of the person. The person or counsel may object on the 17
record to any question, in whole or in part, and must briefly state 18
for the record the reason for the objection. An objection may be 19
made, received, and entered upon the record when it is claimed that 20
the person is entitled to refuse to answer the question on the 21
grounds of any constitutional or other legal right or privilege, 22
including the privilege against self-incrimination. The person may 23
not otherwise object to or refuse to answer any question, and may not 24
directly or through counsel otherwise interrupt the oral examination. 25
If the person refuses to answer any question, a special injury 26
proceeding petition may be filed in the superior court under 27
subsection (25) of this section for an order compelling the person to 28
answer the question. 29
(b) If the person refuses to answer any question on the grounds 30
of the privilege against self-incrimination, the testimony of the 31
person may be compelled in accordance with the provisions of the 32
superior court civil rules. 33
(19) Any person appearing for oral testimony under a civil 34
investigative demand issued under subsection (1) or (2) of this 35
section is entitled to the same fees and allowances which are paid to 36
witnesses in the superior courts. 37
(20) The attorney general must designate a false claims act 38
investigator to serve as custodian of documentary material, answers 39
to interrogatories, and transcripts of oral testimony received under 40
p. 18 HB 2585
this section, and must designate such additional false claims act 1
investigators as the attorney general determines from time to time to 2
be necessary to serve as deputies to the custodian.3
(21)(a) A false claims act investigator who receives any 4
documentary material, answers to interrogatories, or transcripts of 5
oral testimony under this section must transmit them to the 6
custodian. The custodian shall take physical possession of the 7
material, answers, or transcripts and is responsible for the use made 8
of them and for the return of documentary material under subsection 9
(23) of this section. 10
(b) The custodian may cause the preparation of the copies of the 11
documentary material, answers to interrogatories, or transcripts of 12
oral testimony as may be required for official use by any false 13
claims act investigator, or employee of the attorney general. The 14
material, answers, and transcripts may be used by any authorized 15
false claims act investigator or other officer or employee in 16
connection with the taking of oral testimony under this section.17
(c)(i) Except as otherwise provided in this subsection (21), no 18
documentary material, answers to interrogatories, or transcripts of 19
oral testimony, or copies thereof, while in the possession of the 20
custodian, may be available for examination by any individual other 21
than a false claims act investigator or other officer or employee of 22
the attorney general authorized under (b) of this subsection.23
(ii) The prohibition in (c)(i) of this subsection on the 24
availability of material, answers, or transcripts does not apply if 25
consent is given by the person who produced the material, answers, or 26
transcripts, or, in the case of any product of discovery produced 27
pursuant to an express demand for the material, consent is given by 28
the person from whom the discovery was obtained. Nothing in this 29
subsection (21)(c)(ii) is intended to prevent disclosure to the 30
legislature, including any committee or subcommittee for use by such 31
an agency in furtherance of its statutory responsibilities.32
(d) While in the possession of the custodian and under the 33
reasonable terms and conditions as the attorney general shall 34
prescribe: 35
(i) Documentary material and answers to interrogatories must be 36
available for examination by the person who produced the material or 37
answers, or by a representative of that person authorized by that 38
person to examine the material and answers; and 39
p. 19 HB 2585
(ii) Transcripts of oral testimony must be available for 1
examination by the person who produced the testimony, or by a 2
representative of that person authorized by that person to examine 3
the transcripts. 4
(22) Whenever any official has been designated to appear before 5
any court, special inquiry judge, or state administrative judge in 6
any case or proceeding, the custodian of any documentary material, 7
answers to interrogatories, or transcripts of oral testimony received 8
under this section may deliver to the official the material, answers, 9
or transcripts for official use in connection with any case or 10
proceeding as the official determines to be required. Upon the 11
completion of such a case or proceeding, the official must return to 12
the custodian any material, answers, or transcripts so delivered 13
which have not passed into the control of any court, grand jury, or 14
agency through introduction into the record of such a case or 15
proceeding. 16
(23) If any documentary material has been produced by any person 17
in the course of any false claims act investigation pursuant to a 18
civil investigative demand under this section, and:19
(a) Any case or proceeding before the court or special inquiry 20
judge arising out of the investigation, or any proceeding before any 21
administrative judge involving the material, has been completed; or22
(b) No case or proceeding in which the material may be used has 23
been commenced within a reasonable time after completion of the 24
examination and analysis of all documentary material and other 25
information assembled in the course of the investigation:26
Then, the custodian shall, upon written request of the person who 27
produced the material, return to the person the material, other than 28
copies furnished to the false claims act investigator under 29
subsection (10) of this section or made for the attorney general 30
under subsection (21)(b) of this section, which has not passed into 31
the control of any court, grand jury, or agency through introduction 32
into the record of the case or proceeding. 33
(24)(a) In the event of the death, disability, or separation from 34
service of the attorney general of the custodian of any documentary 35
material, answers to interrogatories, or transcripts of oral 36
testimony produced pursuant to civil investigative demand under this 37
section, or in the event of the official relief of the custodian from 38
responsibility for the custody and control of the material, answers, 39
or transcripts, the attorney general must promptly:40
p. 20 HB 2585
(i) Designate another false claims act investigator to serve as 1
custodian of the material, answers, or transcripts; and2
(ii) Transmit in writing to the person who produced the material, 3
answers, or testimony notice of the identity and address of the 4
successor so designated. 5
(b) Any person who is designated to be a successor under this 6
subsection (24) has, with regard to the material, answers, or 7
transcripts, the same duties and responsibilities as were imposed by 8
this section upon that person's predecessor in office, except that 9
the successor may not be held responsible for any default or 10
dereliction which occurred before that designation.11
(25) Whenever any person fails to comply with any civil 12
investigative demand issued under subsection (1) or (2) of this 13
section, or whenever satisfactory copying or reproduction of any 14
material requested in the demand cannot be done and the person 15
refuses to surrender the material, the attorney general may file, in 16
any superior court of the state of Washington for any county in which 17
the person resides, is found, or transacts business, and serve upon 18
the person a petition for an order of the court for the enforcement 19
of the civil investigative demand. 20
(26)(a) Any person who has received a civil investigative demand 21
issued under subsection (1) or (2) of this section may file, in the 22
superior court of the state of Washington for the county within which 23
the person resides, is found, or transacts business, and serve upon 24
the false claims act investigator identified in the demand a petition 25
for an order of the court to modify or set aside the demand. In the 26
case of a petition addressed to an express demand for any product of 27
discovery, a petition to modify or set aside the demand may be 28
brought only in the district court of the United States for the 29
judicial district in which the proceeding in which the discovery was 30
obtained is or was last pending. Any petition filed under this 31
subsection (26)(a) must be filed: 32
(i) Within 30 days after the date of service of the civil 33
investigative demand, or at any time before the return date specified 34
in the demand, whichever date is earlier; or 35
(ii) Within a longer period as may be prescribed in writing by 36
any false claims act investigator identified in the demand.37
(b) The petition must specify each ground upon which the 38
petitioner relies in seeking relief under (a) of this subsection, and 39
may be based upon any failure of the demand to comply with the 40
p. 21 HB 2585
provisions of this section or upon any constitutional or other legal 1
right or privilege of the person. During the pendency of the petition 2
in the court, the court may stay, as it deems proper, the running of 3
the time allowed for compliance with the demand, in whole or in part, 4
except that the person filing the petition shall comply with any 5
portions of the demand not sought to be modified or set aside.6
(27)(a) In the case of any civil investigative demand issued 7
under subsection (1) or (2) of this section which is an express 8
demand for any product of discovery, the person from whom the 9
discovery was obtained may file, in the superior court of the state 10
of Washington for the county in which the proceeding in which the 11
discovery was obtained is or was last pending, and serve upon any 12
false claims act investigator identified in the demand and upon the 13
recipient of the demand a petition for an order of the court to 14
modify or set aside those portions of the demand requiring production 15
of any product of discovery. Any petition under this subsection 16
(27)(a) must be filed: 17
(i) Within 20 days after the date of service of the civil 18
investigative demand, or at any time before the return date specified 19
in the demand, whichever date is earlier; or 20
(ii) Within a longer period as may be prescribed in writing by 21
any false claims act investigator identified in the demand.22
(b) The petition must specify each ground upon which the 23
petitioner relies in seeking relief under (a) of this subsection, and 24
may be based upon any failure of the portions of the demand from 25
which relief is sought to comply with the provisions of this section, 26
or upon any constitutional or other legal right or privilege of the 27
petitioner. During the pendency of the petition, the court may stay, 28
as it deems proper, compliance with the demand and the running of the 29
time allowed for compliance with the demand. 30
(28) At any time during which any custodian is in custody or 31
control of any documentary material or answers to interrogatories 32
produced, or transcripts of oral testimony given, by any person in 33
compliance with any civil investigative demand issued under 34
subsection (1) or (2) of this section, the person and, in the case of 35
an express demand for any product of discovery, the person from whom 36
the discovery was obtained may file, in the superior court of the 37
state of Washington for the county within which the office of the 38
custodian is situated, and serve upon the custodian a petition for an 39
p. 22 HB 2585
order of the court to require the performance by the custodian of any 1
duty imposed upon the custodian by this section. 2
(29) Whenever any petition is filed in any superior court of the 3
state of Washington under this section, the court has jurisdiction to 4
hear and determine the matter so presented, and to enter an order or 5
orders as may be required to carry out the provisions of this 6
section. Any final order so entered is subject to appeal under the 7
rules of appellate procedure. Any disobedience of any final order 8
entered under this section by any court must be punished as a 9
contempt of the court. 10
(30) The superior court civil rules apply to any petition under 11
this section, to the extent that the rules are not inconsistent with 12
the provisions of this section. 13
(31) Any documentary material, answers to written 14
interrogatories, or oral testimony provided under any civil 15
investigative demand issued under subsection (1) or (2) of this 16
section are exempt from public inspection and copying under the 17
public records act, chapter 42.56 RCW. 18
NEW SECTION. Sec. 14. REPORTING. Beginning December 1, 2027, 19
and annually thereafter, the attorney general shall report results of 20
implementing the false claims act. This report must include:21
(1) The number of attorneys assigned to qui tam initiated 22
actions; 23
(2) The number of cases brought by qui tam actions and an 24
indication of how many cases are brought by the attorney general and 25
how many by the qui tam relator without attorney general 26
participation; 27
(3) The results of any actions brought under subsection (2) of 28
this section, delineated by cases brought by the attorney general and 29
cases brought by the qui tam relator without attorney general 30
participation; 31
(4) The amount of recoveries attributable to the false claims; 32
and 33
(5) Information on the costs, attorneys' fees, and any other 34
expenses incurred by defendants in investigating and defending 35
against qui tam actions, to the extent this information is provided 36
to the attorney general. 37
p. 23 HB 2585
NEW SECTION. Sec. 15. CODIFICATION. Sections 1 through 14 of 1
this act constitute a new chapter in Title 7 RCW.2
NEW SECTION. Sec. 16. EFFECTIVE DATE. This act takes effect 3
July 1, 2026.4
--- END ---
p. 24 HB 2585