Government abuse, fraud and waste reporting.

20LSO-0077
2020
STATE OF WYOMING
20LSO-0077
ENGROSSED
3.0

SENATE FILE NO. SF0070

Government abuse, fraud and waste reporting.

Sponsored by: Senator(s) James, Biteman and Bouchard and Representative(s) Gray, Jennings, Laursen, Salazar and Styvar

A BILL

for

AN ACT relating to the administration of government; establishing a reporting system for governmental abuse, fraud and waste; authorizing enforcement actions; amending provisions governing employee protections related to reporting of government abuse, fraud and waste; requiring posted notice of employee protections as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 9
‑
1
‑
514 is created to read:

9
‑
1
‑
514.

Abuse, waste and fraud reporting system; review and referral system.

(a)

In addition to other duties prescribed under this article, the director of the department of audit or his designee shall establish and maintain a system through which persons can report abuse, fraud and waste in the operation of governmental entities. The director shall make available a toll
‑
free telephone number and an online form for persons to make reports of abuse, fraud or waste. The identity of any person making a report on the telephone or online system shall be kept confidential to the extent reasonably possible. The system may allow anonymous reporting. It shall endeavor to encourage and allow fully identified reporting under the employment protections provided by W.S. 9
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11
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103.

(b)

The director shall initially review each report submitted through the system established and maintained pursuant to subsection (a) of this section. Upon completion of an initial review, the director shall:

(i)

Analyze and verify the information received; or

(ii)

Refer the information for appropriate action to the governmental entity that is or appears to be the subject of the report or to the attorney general if there is an apparent violation of criminal law.

(c)

A governmental entity that receives information referred to it by the director or his designee pursuant to this section shall take adequate and appropriate action to investigate and remedy any abuse, fraud or waste discovered as a result of the referral. The governmental entity shall report in writing to the director concerning the results of its investigation and those measures, if any, taken to correct any abuse, fraud or waste discovered as a result of the referral. If, after a reasonable period, the director determines that the governmental entity to which information was referred has not taken adequate and appropriate action to remedy any abuse, fraud or waste that violates law, the director through the attorney general may seek an injunction in the district court to enjoin any person from further causing the abuse, fraud or waste that violates law. If any person violates such an injunction and continues to cause the abuse, fraud or waste, the person shall be individually liable to the applicable governmental
entity for the harm inflicted. In coordination with the director, the attorney general shall prosecute such actions.

(d)

The director or his designee, not less than quarterly, shall post to the department's website in a conspicuous location the results of reviews, verifications and referrals conducted pursuant to this section and any corrective action taken as a result.

(e)

The director or his designee shall, on or before September 1 of each even numbered year, report to the governor and the legislature on the use of the system established and maintained pursuant to subsection (a) of this section, the results of reviews, verifications and referrals conducted pursuant to this section and any corrective action taken as a result.

(f)

The director or his designee may employ investigative, administrative and other specialized personnel to carry out the purposes of this section, subject to legislative appropriation for those purposes.

(g)

All records and information collected and generated pursuant to this section which are not otherwise matters of public record are investigation records and may be withheld from public inspection pursuant to W.S. 16
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4
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203(b)(i).

(h)

As used in this section:

(i)

"Abuse" means excessive or improper use of government property in a manner contrary to its lawful use. Abuse can occur in financial or nonfinancial settings;

(ii)

"Fraud" means wrongful or criminal deception intended to result in financial or personal gain. Fraud includes false representation of fact, making false statements or by concealment of information;

(iii)

"Governmental entity" means the state of Wyoming and any authority, board, commission, department, division or separate operating agency of the executive, legislative or judicial branch of the state of Wyoming. The term also means political subdivisions of the state, including any county, municipal or special district
governing body or any combination thereof, school district or municipal corporation or a board, department, commission, council, agency or any member thereof;

(iv)

"Waste" means the thoughtless or careless expenditure, mismanagement or abuse of resources to the detriment of the governmental agency or incurring unnecessary costs resulting from inefficient or ineffective practices, systems or controls.

Section 2.

W.S. 9
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11
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101, 9–11
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102(a)(i), 9
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11
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103(a)(intro), (i), (iv), (v), by creating a new paragraph (vi) and (b) through (d) are amended to read:

9
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11
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101.

Short title.

This chapter may be cited as the
"State
"
Government Fraud Reduction Act."

9
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11
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102.

Definitions; applicability.

(a)

As used in this chapter:

(i)

"Employee" means any person who works an average of twenty (20) hours or more per week during any six (6) month period and who is employed by the state
or a political subdivision thereof
performing a service for wages or other remuneration, excluding an independent contractor;

9
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11
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103.

Discrimination against certain employees prohibited; civil action against employer.

(a)

No
state
governmental entity
employer may discharge, discipline or retaliate against an employee by unreasonably altering the terms, location or conditions of employment because the employee acting in good faith and within the scope of duties of employment:

(i)

Reports in writing to the employer what the employee has reasonable cause to believe is a demonstration of fraud, waste or gross mismanagement in
state government office
a governmental entity
;

(iv)

Participates or is requested to participate in any investigation, hearing or inquiry;
or

(v)

Has refused to carry out a directive which is beyond the scope, terms and conditions of his employment that would expose the employee or any individual to a condition likely to result in serious injury or death, after having sought and been unable to obtain a correction of the dangerous condition from the employer
;
.

or

(vi)

Submits a report to the department of audit's abuse, fraud or waste reporting system, operated pursuant to W.S. 9
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1
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514. No employee submitting a report to the reporting system shall be required to comply with the provisions of subsection (b) of this section as a condition of receiving the protections provided by this subsection.

(b)

Except as provided by paragraph (a)(vi) of this section, s
ubsection (a) of this section does not apply to an employee who has reported or caused to be reported a violation or unsafe condition or practice, unless the employee has first brought the alleged violation, condition or practice to the attention of a person having supervisory authority over the employee and has allowed the
state
governmental entity
employer a reasonable opportunity to correct that violation, condition or practice. Prior notice to a person having supervisory authority is not required if the employee reasonably believes that the report may not result in prompt correction of the violation, condition or practice. In such cases, the employee shall report the violation, condition or practice to the department or agency director of the
state
governmental
entity with which he is employed or to the office of the governor. In the event the alleged violation, condition or practice occurred within the office of the governor, the employee may report the violation, condition or practice to the office of the secretary of state.

(c)

Any employee who is discharged, disciplined or otherwise penalized by a
state
governmental entity
employer in violation of this section may after exhausting all available administrative remedies, bring a civil action within ninety (90) days after the date of the final administrative determination or within ninety (90) days after the violation, whichever is later, in the district court for the judicial district in which the violation is alleged to have occurred or where the
state
employer has
its principal office. An employee's recovery from any action under this section shall be limited to reinstatement of his previous job, payment of back wages and re
‑
establishment of employee benefits to which he would have otherwise been entitled if the violation had not occurred. In addition, the court may allow the prevailing party his costs together with reasonable attorney's fees to be taxed by the court. Any employee found to have knowingly made a false report shall be subject to disciplinary action by his employer up to and including dismissal.

(d)

A
state
governmental entity
employer shall ensure that its employees are aware of their rights under this chapter.
Each employer shall conspicuously post and maintain in each of the employer's establishments a notice explaining its employees' rights under this chapter. If possible, the notice shall be posted in a public location.

Section 3.

This act is effective July 1, 2020
.

(END)

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SF0070