Government waste, fraud and abuse.

21LSO-0043
2021
STATE OF WYOMING
21LSO-0043
Numbered
2.0

SENATE FILE NO. SF0065

Government waste, fraud and abuse.

Sponsored by: Senator(s) James, Biteman, Bouchard, French, McKeown and Salazar and Representative(s) Fortner, Gray, Laursen, Neiman and Wharff

A BILL

for

AN ACT relating to the administration of government; establishing a reporting system for governmental waste, fraud and abuse; authorizing enforcement actions; imposing employment consequences; amending provisions governing employee protections related to reporting of government waste, fraud and abuse; requiring posted notice of employee protections as specified; requiring reports; specifying applicability; 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.

Waste, fraud and abuse reporting system; review and referral system.

(a)

In addition to other duties prescribed under this article, the director of the department of audit or the director's designee shall establish and maintain a system through which persons can report waste, fraud and abuse in the operation of governmental entities. The director shall make available a toll
‑
free telephone number and an online form for persons to report waste, fraud or abuse. The system shall clearly define and provide examples of waste, fraud or abuse in the operation of a governmental entity. The system shall provide resources relating to common types of reporting for which the department does not have jurisdiction.

(b)

In all reports all reasonable steps shall be taken to protect the identity of the person making the report. In addition, a person making a report may elect to have the person's identity kept confidential and not disclosed to any person not employed by the department of audit. Except when required by law, a department of audit
employee who discloses the identity of a person making a report under this section to a person not employed by the department of audit shall be terminated from the department of audit for the unauthorized disclosure.

(c)

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.

(d)

A governmental entity that receives information referred to it by the director or the director's designee pursuant to this section shall take adequate and appropriate action to investigate and remedy any waste,
fraud or abuse 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 waste, fraud or abuse 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 waste, fraud or abuse that violates law, the director through the attorney general may seek an injunction in a district court to enjoin any person from further causing the waste, fraud or abuse that violates law. If any person violates the injunction and continues to cause the waste, fraud or abuse, the person continuing to cause the waste, fraud or abuse shall be individually liable to the applicable governmental entity for the harm inflicted. In coordination with the director, the attorney general may prosecute such actions.

(e)

No person convicted of a crime that constitutes waste, fraud or abuse shall be employed by a governmental entity.

(f)

Consistent with the limitations on the disclosure of information imposed by this section, the director or the director's designee, not less than quarterly, shall post to the department's website in a conspicuous location the results of finalized reviews, verifications and referrals conducted pursuant to this section and any corrective action taken as a result. The homepage of the department's website shall contain a link to this information. These posts shall include:

(i)

The name, position and governmental entity of any person who has engaged in waste, fraud or abuse in the operation of a governmental entity;

(ii)

The type of violation perpetrated, including the direct cost to the taxpayers of the waste, fraud or abuse;

(iii)

Penalties imposed; and

(iv)

Governmental resources expended to investigate and remedy the waste, fraud or abuse.

(g)

The director or the director's 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.

(h)

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

(j)

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

(k)

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:

(A)

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;

(B)

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; or

(C)

Any person under a contract with an entity included within subparagraph (A) or (B) of this paragraph for purposes of actions taken pursuant to that contract.

(iv)

"Waste" means the thoughtless or careless expenditure, mismanagement or abuse of resources to the detriment of the governmental entity 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
‑
102(a)(i), (iii) and by creating a new paragraph (iv), 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) and 42
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4
‑
304(e) 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
a governmental entity
performing a service for wages or other remuneration, excluding an independent contractor;

(iii)

"State" 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
;
, excluding its political subdivisions.

(iv)

"Governmental entity" means the state, a political subdivision or any person under a contract with
the state or a political subdivision for purposes of actions taken pursuant to that contract.

9
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11
‑
103.

Discrimination against certain employees prohibited; civil action against employer.

(a)

No
state
governmental entity
employer may discharge, discipline
, intimidate, harass
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 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
administrative head
of the
state
governmental
entity with which
he
the employee
is employed or
, if a state employee,
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
the employee's
previous job, payment of back wages and re
‑
establishment of employee benefits to which
he
the employee
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
the
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 post and maintain in each of the employer's establishments in a conspicuous location a notice explaining its employees' rights under this chapter.

If possible, the notice shall be posted in a public location.

42
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4
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304.

Investigations and prosecutions; powers of prosecuting authority; remedies for retaliation; venue; no private right of action.

(e)

The remedies provided in this act are separate from and additional to any remedies available under the
State
Government Fraud Reduction Act.

Section 3
.

This act shall not apply to any actions taken pursuant to any contract entered into prior to the effective date of this act.

Section 4.

This act is effective July 1, 2021
.

(END)

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SF0065