By Associated Press
FRANKFORT, Ky. – Whistle-blowers would be encouraged to report government fraud under a measure approved by the House on Monday.
House Speaker Greg Stumbo, sponsor of the bill, said the federal government and 28 other states already have similar measures in place. The proposal, dubbed the False Claims Act, is aimed at encouraging whistle-blowers by giving them up to 30 percent of damages won in lawsuits against companies found to have defrauded the state.
The measure, which passed the House 98-0, now goes to the Senate for consideration.
Stumbo said he had supported such a measure since his days serving as the state's attorney general because he had seen how effective the rewards had been in other states.
"All told, the federal government and the participating states have brought in about $25 billion over the last 25 years," he said. "I don't see how we can afford not to take this step."
The Senate is pushing a proposal that would encourage whistle-blowers to report fraud within the Medicaid program. Stumbo said he's hopeful the General Assembly decides to extend the whistle-blower incentives to all government programs and agencies.