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26LSO-0278
2026
STATE OF WYOMING
26LSO-0278
ENGROSSED
3.0
SENATE FILE NO. SF0092
Wyoming False Claims Act.
Sponsored by: Senator(s) Nethercott, Crago and Kolb and Representative(s) Banks, Byron, Clouston, Erickson, Fornstrom and Lawley
A BILL
for
AN ACT relating to civil procedure; providing civil penalties for false claims made against state employees and officials as specified; providing definitions; providing exceptions; providing remedies for retaliation regarding persons who report violations of this act; providing a statute of limitations; providing procedures for lawsuits as specified; authorizing civil actions; creating an account; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
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W.S. 1
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44
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101 through 1
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44
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107 are created to read:
CHAPTER 44
WYOMING FALSE CLAIMS ACT
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44
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101.
Short title.
This act shall be known and may be cited as the "Wyoming False Claims Act."
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102.
Definitions.
(a)
As used in this act:
(i)
"Claim" means:
(A)
Any request or demand, whether under a contract or otherwise, for money or property, and whether or not the state has title to the money or property, that:
(I)
Is presented to an officer, employee or agent of the state; or
(II)
Is made to a contractor, grantee or other recipient, if the money or property is to be spent or used on the state's behalf or to advance a state program or interest, and if the state:
(1)
Provides or has provided any portion of the money or property requested or demanded; or
(2)
Will reimburse the contractor, grantee or other recipient for any portion of the money or property that is requested or demanded.
(ii)
"False claims law investigation" means any inquiry conducted by any person on behalf of the state for the purpose of ascertaining whether any person is or has engaged in any violations of this act;
(iii)
"Knowing" or "knowingly" means:
(A)
That a person, with respect to information and without requiring proof of specific intent to defraud, does any of the following:
(I)
Has actual knowledge of the information;
(II)
Acts in deliberate ignorance of the truth or falsity of the information; or
(III)
Acts in reckless disregard of the truth or falsity of the information.
(iv)
"Material" means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property;
(v)
"Obligation" means an established duty, whether or not fixed, arising from an express or implied contractual, grantor
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grantee or licensor
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licensee relationship, from a fee
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based or similar relationship, from statute or regulation or from the retention of any overpayment;
(vi)
"Original source" means a person who:
(A)
Has voluntarily disclosed to the state the information on which allegations or transactions in a claim are based; or
(B)
Has knowledge that is independent of and materially adds to the publicly disclosed allegations or transactions, and who has voluntarily provided the information to the state before the state files an action under this act.
(vii)
"Proceeds" means civil penalties and damages as provided by this act;
(viii)
"Prosecuting authority" means any official other than the attorney general charged with investigating, filing and conducting civil legal proceedings on behalf of, or in the name of, the state;
(ix)
"State" means the state of Wyoming, its agencies, boards, political subdivisions as defined by W.S. 9
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2
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401(a)(iv), instrumentalities, officers and employees, including the University of Wyoming;
(x)
"This act" means W.S. 1
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44
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101 through 1
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44
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107.
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44
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103.
False claims liability; damages; costs; civil penalties; exceptions.
(a)
Notwithstanding any other law to the contrary, any person who commits any of the following acts shall be liable to the state for three (3) times the amount of damages that the state sustains because of the actions of that person. A person who commits any of the following acts shall also be liable to the state for the costs of a civil action brought to recover penalties or damages and shall be liable to the state for a civil penalty of not less than five thousand five hundred dollars ($5,500.00) and not more than eleven thousand dollars ($11,000.00) for each false or fraudulent claim where the person:
(i)
Knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;
(ii)
Knowingly makes, uses or causes to be made or used a false record or statement material to a false or fraudulent claim;
(iii)
Has possession, custody or control of property or money used, or to be used, by the state and knowingly delivers, or causes to be delivered, less than all of that money or property;
(iv)
Is authorized to make or deliver a document certifying receipt of property used, or to be used, by the state and, intending to defraud the state, makes or delivers the receipt without knowing whether the information on the receipt is true;
(v)
Knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the state who lawfully may not sell or pledge property;
(vi)
Knowingly makes, uses or causes to be made or used a false record or statement material to an obligation to pay or transmit money or property to the state, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the state;
(vii)
Conspires to commit a violation of this subsection;
(viii)
Is a beneficiary of an inadvertent submission of a false or fraudulent claim to the state, subsequently discovers the falsity of the claim and fails to disclose the false or fraudulent claim to the state; or
(ix)
Is the beneficiary of an inadvertent payment or overpayment by the state of funds not due and knowingly fails to repay the inadvertent payment or overpayment to the state.
(b)
Notwithstanding subsection (a) of this section, a court may assess not more than two (2) times the amount of damages that the state sustains because of a violation of subsection (a) of this section, and shall assess no civil penalty, if the court finds all of the following:
(i)
The person committing the violation furnished officials of the state responsible for investigating false claims violations with all information known to that person about the violation within thirty (30) days after the date where the person first obtained the information;
(ii)
The person fully cooperated with any investigation by the state;
(iii)
At the time the person furnished the state with information about the violation, no criminal prosecution, civil action or administrative action had commenced with respect to the violation, and the person did not have actual knowledge of the existence of an investigation into the violation.
(c)
Liability pursuant to this section shall be joint and several for any act committed by two (2) or more persons.
(d)
This act shall not apply to claims made:
(i)
Pursuant to a workers' compensation claim;
(ii)
Regarding the payment of sales and use taxes under title 39 of the Wyoming statutes;
(iii)
Regarding the assets of a person that have been transferred to the commissioner of the department of insurance under title 26 of the Wyoming statutes;
(iv)
Regarding services requested under the Wyoming medicaid program;
(v)
Regarding federal welfare benefits;
(vi)
Regarding money, property or services that the state has paid to a person as compensation for employment with the state or as an income subsidy with no restrictions on that person's use of the money, property or services;
(vii)
Regarding the payment of 911 emergency taxes imposed under title 16 of the Wyoming statutes;
(viii)
Regarding the payment of state universal service fund contributions under title 37 of the Wyoming statutes;
(ix)
Regarding the payment of state message relay service fees under title 16 of the Wyoming statutes;
(x)
Regarding the payment of local franchise fees under title 15 of the Wyoming statutes.
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104.
Investigations and prosecutions; powers of prosecuting authority; civil actions; jurisdiction of courts.
(a)
The following shall apply to investigations of false claims under this act:
(i)
The attorney general or applicable prosecuting authority shall diligently investigate violations of this act. If the attorney general finds that a person has violated this act, the attorney general or the applicable prosecuting authority may bring a civil action under this section against that person;
(ii)
An applicable prosecuting authority shall have the right to intervene in an action brought by the attorney general under this section not more than sixty (60) days after the attorney general notifies the prosecuting authority of a violation of this act within the prosecuting authority's jurisdiction. A court may permit intervention if the Wyoming Code of Civil Procedure and Rules of Civil Procedure have been adhered to.
(b)
The following shall apply to civil actions brought due to violations prohibited by this act:
(i)
The parties of civil actions shall adhere to the requirements of the Wyoming Code of Civil Procedure and Rules of Civil Procedure;
(ii)
No court shall have jurisdiction over an action brought pursuant to this act against a member of the legislature, a member of the judiciary, an elected official or a member of any governing body if the action is based on a false claim where evidence or information about the claim was known to the state when the action is brought;
(iii)
The attorney general or applicable prosecuting authority shall not bring an action that is based upon allegations or transactions that are the subject of a civil action or penalty proceeding where the state is already a party;
(iv)
A court may dismiss an action or claim under this section if substantially the same allegations or transactions were publicly disclosed in any of the following:
(A)
A criminal, civil or administrative proceeding where the state or prosecuting authority are a party;
(B)
A report, hearing, audit or investigation of the legislature or the state;
(C)
The news media.
(v)
Paragraph (iv) of this subsection shall not apply if the action is brought by the attorney general or applicable prosecuting authority or the person bringing the action is the original source of the information;
(vi)
Unless otherwise authorized by law, a court shall not have jurisdiction over an action based upon information discovered by a present or former employee of the state during the course of that employee's employment unless that employee first, in good faith, exhausts existing internal procedures for reporting and seeking recovery of the falsely claimed sums through official channels and unless the state failed to act on the information provided within a reasonable period of time.
(c)
The false claims act account is hereby created. Notwithstanding W.S. 5
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9
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106 or any other law, thirty
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three percent (33%) of the proceeds of an action or settlement of a claim by the attorney general or a prosecuting authority pursuant to this act shall be deposited into the account. The remaining proceeds of an action or settlement of a false claim shall be deposited into the public school fund of the applicable county in which the false claim arose. Funds in the account, upon appropriation by the legislature, shall:
(i)
Be continuously appropriated to the office of the attorney general;
(ii)
Be used by the attorney general to support the ongoing investigation and prosecution of false claims pursuant to this act;
(iii)
Be used to reimburse a prosecuting authority for the investigation and prosecution of false claims pursuant to this act;
(iv)
Unless otherwise specifically provided, not lapse or revert at the end of the fiscal period and shall remain in the account; and
(v)
Regarding interest or other earnings on funds within the account, be credited to the account.
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105.
Relief from retaliatory actions.
(a)
In addition to the remedies provided by W.S. 9
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11
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103 if applicable, any employee, contractor or agent shall be entitled to all relief necessary to make that employee, contractor or agent whole if that employee, contractor or agent is discharged, demoted, suspended, threatened, harassed or in any other manner discriminated against in the terms and conditions of employment because of lawful acts done by the employee, contractor, agent or associated others in furtherance of an action under this act or other efforts to stop one (1) or more violations of this act.
(b)
The relief authorized under subsection (a) of this section shall include:
(i)
Reinstatement with the same status that the employee, contractor or agent would have had but for the retaliation;
(ii)
Two (2) times the amount of back pay;
(iii)
Interest on the back pay;
(iv)
Compensation for any special damages sustained as a result of the retaliation, including litigation costs and reasonable attorneys' fees.
(c)
In addition to the provisions of subsections (a), (b) and (f) of this section, the following shall apply to civil actions brought by private persons alleging violations of this act:
(i)
A person may bring a civil action for a violation of this act on behalf of the person and the state. Any action brought under this subsection shall be brought on behalf of and in the name of the state. The action may be dismissed only if the attorney general or prosecuting authority give written consent to the dismissal and the reasons for consenting;
(ii)
A copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the attorney general or the prosecuting authority. The complaint and written disclosure shall be filed in camera, shall remain under seal for not less than sixty (60) days and shall not be served on the defendant until the court orders an action. The attorney general or prosecuting authority may elect to intervene and proceed with the action not more than sixty (60) days after the attorney general or prosecuting authority receives the complaint and the material evidence regarding the violation of this act;
(iii)
The attorney general or prosecuting authority may, for good cause shown, move the court for extensions of the time that the complaint and written disclosure remain under seal. Any motions under this paragraph may be supported by affidavits or other submissions in camera. The defendant shall not be required to respond to any complaint filed under this subsection until twenty (20) days after the complaint and written disclosure are unsealed and served upon the defendant;
(iv)
Before the expiration of the sixty (60) day period under paragraph (ii) of this subsection or any extensions obtained under paragraph (iii) of this subsection, the attorney general or prosecuting authority shall:
(A)
Proceed with the action, where the action shall be conducted by the attorney general or prosecuting authority; or
(B)
Notify the court that it declines to take over the action, where the person bringing the action shall have the right to commence and continue with the action.
(v)
When a person brings an action under this subsection, no person other than the attorney general or prosecuting authority may intervene or bring a related action based on the facts underlying the pending action.
(d)
If the attorney general or prosecuting authority proceeds with and prevails in a civil action brought by a private person under subsection (c) of this section, that person shall receive not less than fifteen percent (15%) but not more than twenty
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five percent (25%) of the proceeds of the action or settlement of the claim, depending upon the extent that the person contributed to the prosecution of the action. Any payment to a person made under this subsection shall be made from the proceeds of the civil action. The person shall also receive compensation for reasonable expenses that were necessarily incurred by the person, plus reasonable attorney fees and costs, all of which shall be awarded against the defendant.
(e)
If the attorney general or prosecuting authority does not proceed with a civil action brought by a private person under subsection (c) of this section and the person bringing the action commences and continues with the action, the court may award the defendant reasonable attorney fees and expenses if the defendant prevails in the action and the court finds that the claim of the person bringing the action was clearly frivolous, clearly vexatious or brought primarily for purposes of harassment.
(f)
An action seeking relief under this section may be brought in a court of competent jurisdiction, provided that a civil action seeking relief under this section may not be brought later than the times specified in W.S. 1
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106.
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106.
Limitation of actions; burden of proof.
(a)
A civil action brought under this act shall not be brought more than three (3) years after the date when the facts material to the right of action are known or reasonably should have been known by the attorney general or other prosecuting authority, but in no event more than six (6) years after the date where the violation of this act was committed.
(b)
In any civil action brought under this act, the state shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.
(c)
Notwithstanding any other provision of law, a judgment of guilt in a criminal proceeding charging false statement or fraud, upon a verdict after trial or upon a plea of guilty or nolo contendere, shall estop the defendant from denying the essential elements of the offense in any action brought pursuant to this act which involves the same transaction as in the criminal proceeding.
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107.
Remedies pursuant to other laws; severability.
The provisions of this act are not exclusive, and the remedies provided for shall be in addition to any other remedies provided for in any other law or available pursuant to common law.
Section 2
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This act is effective July 1, 2026
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(END)
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SF0092