Rep. Jay Hoffman

Filed: 3/24/2017

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1
AMENDMENT TO HOUSE BILL 1685
2 AMENDMENT NO. ______. Amend House Bill 1685 by replacing
3everything after the enacting clause with the following:
4 "Section 5. The Insurance Claims Fraud Prevention Act is
5amended by changing Section 25 as follows:
6 (740 ILCS 92/25)
7 Sec. 25. Costs and proceeds of action.
8 (a) If the State's Attorney or Attorney General proceeds
9with an action brought by a person under Section 15, that
10person is entitled to receive an amount that the court
11determines is reasonable based upon the extent to which the
12person contributed to the prosecution of the action. Subject to
13subsection (d), the amount awarded to the person who brought
14the action shall not be less than 30% of the proceeds of the
15action or settlement of the claim, and shall be paid from the
16proceeds.

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1 (b) If the State's Attorney or Attorney General does not
2proceed with an action brought by a person under Section 15,
3that person shall receive an amount that the court decides is
4reasonable for collecting the civil penalty and damages.
5Subject to subsection (d), the amount shall not be less than
640% of the proceeds of the action or settlement, and shall be
7paid from the proceeds.
8 (c) If the person bringing the action as a result of a
9violation of this Act has paid money to the defendant or to an
10attorney acting on behalf of the defendant in the underlying
11claim, then he or she shall be entitled to up to double the
12amount paid to the defendant or the attorney if that amount is
13greater than 50% of the proceeds.
14 (d) Where the action is one that the court finds to be
15based primarily on disclosures of specific information, other
16than information provided by the person bringing the action
17under Section 15, relating to allegations or transactions in a
18criminal, civil, or administrative hearing, in a legislative or
19administrative report, hearing, audit, or investigation, or
20from the news media, the court may award those sums that it
21considers appropriate, but in no case more than 10% of the
22proceeds, taking into account the significance of the
23information and the role of the person bringing the action in
24advancing the case to litigation.
25 (e) Any payment to a person under subsection (a), (b), (c),
26or (d) shall be made from the proceeds. The person shall also

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1receive an amount for reasonable expenses that the court finds
2to have been necessarily incurred, plus reasonable attorney's
3fees and costs. All of those expenses, fees, and costs shall be
4awarded against the defendant.
5 (f) If a local State's Attorney has proceeded with an
6action under this Act, the Treasurer of the County where the
7action was brought shall receive an amount for reasonable
8expenses that the court finds to have been necessarily incurred
9by the State's Attorney, including reasonable attorney's fees
10and costs, plus 50% of the funds not awarded to a private
11party. Those amounts shall be used to investigate and prosecute
12insurance fraud, augmenting existing budgets rather than
13replacing them. All remaining funds shall go to the State and
14be deposited in the General Revenue Fund and, when
15appropriated, shall be allocated to appropriate State agencies
16for enhanced insurance fraud investigation, prosecution, and
17prevention efforts.
18 (g) If the Attorney General has proceeded with an action
19under this Act, all funds not awarded to a private party, shall
20go to the State and be deposited in the General Revenue Fund
21and, when appropriated, shall be allocated to appropriate State
22agencies for enhanced insurance fraud investigation,
23prosecution, and prevention efforts.
24 (h) If neither a local State's Attorney or the Attorney
25General has proceeded with an action under this Act, 50% of the
26funds not awarded to a private party shall be deposited with

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1the Treasurer of the County where the action was brought and
2shall be disbursed to the State's Attorney of the County where
3the action was brought. Those funds shall be used by the
4State's Attorney solely to investigate, prosecute, and prevent
5crime insurance fraud, augmenting existing budgets rather than
6replacing them. All remaining funds shall go to the State and
7be deposited in the General Revenue Fund and, when
8appropriated, shall be allocated to appropriate State agencies
9for enhanced crime insurance fraud investigation, prosecution,
10and prevention efforts.
11 (i) Whether or not the State's Attorney or Attorney General
12proceeds with the action, if the court finds that the action
13was brought by a person who planned and initiated the violation
14of this Act, that person shall be dismissed from the civil
15action and shall not receive any share of the proceeds of the
16action. The dismissal shall not prejudice the right of the
17State's Attorney or Attorney General to continue the action on
18behalf of the State.
19 (j) If the State's Attorney or Attorney General does not
20proceed with the action, and the person bringing the action
21conducts the action, the court may award to the defendant its
22reasonable attorney's fees and expenses if the defendant
23prevails in the action and the court finds that the claim of
24the person bringing the action was clearly frivolous, clearly
25vexatious, or brought primarily for purposes of harassment.
26(Source: P.A. 92-233, eff. 1-1-02.)".