What is the Iowa Whistleblower Law (Iowa False Claims Act)?
The Iowa whistleblower law, the Iowa False Claims Act, imposes liability on persons or corporations who knowingly present false or fraudulent claims for payment to the state; misappropriate state property; or conceal, avoid or decrease an obligation to pay or transmit property to the State of Iowa.
Penalties under the Iowa Whistleblower Law
A defendant may be ordered to pay up to three times the actual damages to the state, plus civil fines for each violation of the Iowa False Claims Act.
Rewards under the Iowa Whistleblower Law
Whistleblowers may receive between 15 and 25 percent of any recovery in cases where the State intervenes and prosecutes the matter, and between 25 and 30 percent of the recovery in matters where the state does not intervene. The court may reduce the amount of the award if the whistleblower’s complaint is based primarily upon publicly disclosed information or if the plaintiff planned or initiated the fraud.
Protection from Retaliation under the Iowa Whistleblower Law
The Iowa False Claims Act protects whistleblowers who suffer employment retaliation because of their whistleblowing. Protection under the Iowa whistleblower law includes:
- Reinstatement with the same seniority status that the whistleblower would have had but for the retaliation
- Two times the amount of back pay
- Interest on the back pay
- Compensation for any special damages sustained as a result of the retaliation
In successful whistleblower retaliation cases, the defendant is also required to pay litigation costs and reasonable attorneys’ fees.
Time Limits (Statute of Limitations) under the Iowa Whistleblower Law
Whistleblowers must generally file a qui tam complaint within six years of the violations they are reporting, but the time for filing may be extended in certain cases to up to ten years.
[Updated October 2023]
IOWA WHISTLEBLOWER LAW: THE IOWA FALSE CLAIMS ACT
Iowa Code § 685.1. Definitions
1. “Claim” means any request or
demand, whether pursuant to a contract or otherwise, for money or property and
whether the state has title to the money or property, which is presented to an
officer, employee, agent, or other representative of the state or to a
contractor, grantee, or other person 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 provides any portion of the money or property which is requested or
demanded, or if the state will reimburse directly or indirectly such
contractor, grantee, or other person for any portion of the money or property
which is requested or demanded. “Claim” does not include any requests or
demands for money or property that the state has paid to an individual as
compensation for state employment or as an income subsidy with no restrictions
on that individual’s use of the money or property.
2. “Custodian” means the custodian,
or any deputy custodian, designated by the attorney general under section 685.6.
3. “Documentary material” includes
the original or any copy of any book, record, report, memorandum, paper,
communication, tabulation, chart, or other document, or data compilations
stored in or accessible through computer or other information retrieval
systems, together with instructions and all other materials necessary to use or
interpret such data compilations, and any product of discovery.
4. “False claims law” means this chapter.
5. “False claims law investigation”
means any inquiry conducted by a false claims law investigator for the purpose
of ascertaining whether any person is or has been engaged in any violation of a
false claims law.
6. “False claims law investigator”
means any attorney or investigator employed by the department of justice who is
charged with the duty of enforcing or carrying into effect any false claims law,
or any officer or employee of the state acting under the direction and
supervision of such attorney or investigator in connection with a false claims
law investigation.
7.
a. “Knowing” or “knowingly” means that a person with
respect to information, does any of the following:
(1) Has actual knowledge of the information.
(2) Acts in deliberate ignorance of the truth or
falsity of the information.
(3) Acts in reckless disregard of the truth or
falsity of the information.
b. “Knowing” or “knowingly” does not require proof
of specific intent to defraud.
8. “Material” means having a natural
tendency to influence, or be capable of influencing, the payment or receipt of
money or property.
9. “Obligation” means an established
duty, whether or not fixed, arising from an express or implied contractual,
grantor-grantee, or licensor-licensee relationship, from a fee-based or similar
relationship, from statute or regulation, or from the retention of any
overpayment.
10. “Official use” means any use that
is consistent with the law, and the regulations and policies of the department
of justice, including use, in connection with internal department of justice
memoranda and reports; communications between the department of justice and a
federal, state, or local government agency or a contractor of a federal, state,
or local government agency, undertaken in furtherance of a department of
justice investigation or prosecution of a case; interviews of any qui tam
plaintiff or other witness; oral examinations; depositions; preparation for and
response to civil discovery requests; introduction into the record of a case or
proceeding; applications, motions, memoranda and briefs submitted to a court or
other tribunal; and communications with government investigators, auditors, consultants
and experts, the counsel of other parties, and arbitrators and mediators,
concerning an investigation, case, or proceeding.
11. “Original source” means an
individual who prior to a public disclosure under section 685.3, subsection 5,
paragraph “c”, has voluntarily disclosed to the state the information on which
the allegations or transactions in a claim are based; or who has knowledge that
is independent of and materially adds to the publicly disclosed allegations or
transactions, and has voluntarily provided the information to the state before
filing an action under this chapter.
12. “Person” means any natural
person, partnership, corporation, association, or other legal entity, including
any state or political subdivision of the state.
13. “Product of discovery” includes
all of the following:
a. The original or duplicate of any deposition,
interrogatory, document, thing, result of the inspection of land or other
property, examination, or admission, which is obtained by any method of
discovery in any judicial or administrative proceeding of an adversarial
nature.
b. Any digest, analysis, selection, compilation, or
derivation of any item listed in paragraph “a”.
c. Any index or other manner of access to any item
listed in paragraph “a”.
14. “Qui tam plaintiff” means a
private plaintiff who brings an action under this chapter on behalf of the
state.
15. “State” means the state of Iowa.
Iowa Code § 685.2. Acts subjecting person to treble damages, costs, and civil
penalties–exceptions
1. A person who commits any of the
following acts is liable to the state for a civil penalty of not less than and
not more than the civil penalty allowed under the federal False Claims Act, as
codified in 31 U.S.C. § 3729 et seq., as may be adjusted in accordance with the
inflation adjustment procedures prescribed in the federal Civil Penalties
Inflation Adjustment Act of 1990, Pub. L. No. 101-410, for each false or
fraudulent claim, plus three times the amount of damages which the state
sustains:
a. Knowingly presents, or causes to be presented, a
false or fraudulent claim for payment or approval.
b. Knowingly makes, uses, or causes to be made or
used, a false record or statement material to a false or fraudulent claim.
c. Conspires to commit a violation of paragraph “a”,
“b”, “d”, “e”, “f”, or “g”.
d. 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.
e. 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 completely knowing
that the information on the receipt is true.
f. Knowingly buys, or receives as a pledge of an obligation
or debt, public property from an officer or employee of the state, or a member
of the Iowa national guard, who lawfully may not sell or pledge property.
g. 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.
2. Notwithstanding subsection 1, the
court may assess not less than two times the amount of damages which the state
sustains because of the act of the person described in subsection 1, if the
court finds all of the following:
a. The person committing the violation furnished
officials of the state responsible for investigating false claims violations
with all information known to such person about the violation within thirty
days after the date on which the person first obtained the information.
b. The person fully cooperated with the state
investigation of such violation.
c. At the time the person furnished the state with
the information about the violation, a criminal prosecution, civil action, or
administrative action had not commenced under this chapter with respect to such
violation, and the person did not have actual knowledge of the existence of an
investigation into such violation.
3. A person violating this section
shall also be liable to the state for the costs of a civil action brought to
recover any such penalty or damages.
4. Any information furnished pursuant
to subsection 2 is deemed confidential information exempt from disclosure
pursuant to chapter 22.
5. This section shall not apply to
claims, records, or statements made under Title X relating to state revenue and
taxation.
Iowa Code § 685.3. Investigations and prosecutions–powers of prosecuting
authority–civil actions by individuals as qui tam plaintiffs and as private
citizens–jurisdiction of courts
1. The attorney general shall
diligently investigate a violation under section 685.2. If the attorney general
finds that a person has violated or is violating section 685.2, the attorney
general may bring a civil action under this section against that person.
2.
a. A person may bring a civil action for a violation
of this chapter for the person and for the state, in the name of the state. The
person bringing the action shall be referred to as the qui tam plaintiff. Once
filed, the action may be dismissed only if the court and the attorney general
provide written consent to the dismissal and the reasons for such consent.
b. 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 pursuant to the Iowa rules of civil
procedure. The complaint shall also be filed in camera, shall remain under seal
for at least sixty days, and shall not be served on the defendant until the
court so orders. The state may elect to intervene and proceed with the action
within sixty days after the state receives both the complaint and the material
evidence and the information.
c. The state may, for good cause shown, move the
court for extensions of the time during which the complaint remains under seal
under paragraph “b”. Any such motions may be supported by affidavits or other
submissions in camera. The defendant shall not be required to respond to any
complaint filed under this section until twenty days after the complaint is
unsealed and served upon the defendant pursuant to rule 1.302 of the Iowa rules
of civil procedure.
d. Before the expiration of the sixty-day period or
any extensions obtained under paragraph “c”, the state shall do one of the
following:
(1) Proceed with the action, in which case the
action shall be conducted by the state.
(2) Notify the court that the state declines to take
over the action, in which case the qui tam plaintiff shall have the right to
conduct the action.
e. When a person brings an action under this
section, no person other than the state may intervene or bring a related action
based on the facts underlying the pending action.
3.
a. If the state proceeds with the action, the state
shall have the primary responsibility for prosecuting the action, and shall not
be bound by an act of the qui tam plaintiff. Such qui tam plaintiff shall have
the right to continue as a party to the action, subject to the limitations
specified in paragraph “b”.
b.
(1) The state may move to dismiss the action,
notwithstanding the objections of the qui tam plaintiff if the qui tam
plaintiff has been notified by the state of the filing of the motion and the
court has provided the qui tam plaintiff with an opportunity for a hearing on
the motion.
(2) The state may settle the action with the
defendant notwithstanding the objections of the qui tam plaintiff if the court
determines, after a hearing, that the proposed settlement is fair, adequate,
and reasonable under all of the circumstances. Upon a showing of good cause,
such hearing may be held in camera.
(3) Upon a showing by the state that unrestricted
participation during the course of the litigation by the qui tam plaintiff
would interfere with or unduly delay the state’s prosecution of the case, or
would be repetitious, irrelevant, or for purposes of harassment, the court may,
in its discretion, impose limitations on the qui tam plaintiff’s participation,
including but not limited to any of the following:
(a) Limiting the number of witnesses the qui tam
plaintiff may call.
(b) Limiting the length of the testimony of such
witnesses.
(c) Limiting the qui tam plaintiff’s
cross-examination of witnesses.
(d) Otherwise limiting the participation by the qui
tam plaintiff in the litigation.
(4) Upon a showing by the defendant that
unrestricted participation during the course of the litigation by the qui tam
plaintiff would be for purposes of harassment or would cause the defendant
undue burden or unnecessary expense, the court may limit the participation by
the qui tam plaintiff in the litigation.
c. If the state elects not to proceed with the
action, the qui tam plaintiff shall have the right to conduct the action. If
the state so requests, the state shall be served with copies of all pleadings
filed in the action and shall be supplied with copies of all deposition
transcripts at the state’s expense. When a qui tam plaintiff proceeds with the
action, the court, without limiting the status and rights of the qui tam
plaintiff, may permit the state to intervene at a later date upon a showing of
good cause.
d. Whether or not the state proceeds with the
action, upon a showing by the state that certain actions of discovery by the
qui tam plaintiff would interfere with the state’s investigation or prosecution
of a criminal or civil matter arising out of the same facts, the court may stay
such discovery for a period of not more than sixty days. Such a showing shall
be conducted in camera. The court may extend the sixty-day period upon a
further showing in camera that the state has pursued the criminal or civil
investigation or proceedings with reasonable diligence and any proposed discovery
in the civil action will interfere with the ongoing criminal or civil
investigation or proceedings.
e. Notwithstanding subsection 2, the state may elect
to pursue the state’s claim through any alternate remedy available to the
state, including any administrative proceeding to determine a civil penalty. If
any such alternate remedy is pursued in another proceeding, the qui tam
plaintiff shall have the same rights in such proceeding as such qui tam
plaintiff would have had if the action had continued under this section. Any
finding of fact or conclusion of law made in such other proceeding that has
become final, shall be conclusive as to all such parties to an action under
this section. For purposes of this paragraph, a finding or conclusion is final
if it has been finally determined on appeal to the appropriate court of the
state, if all time for filing such an appeal with respect to the finding or
conclusion has expired, or if the finding or conclusion is not subject to
judicial review.
4.
a.
(1) If the state proceeds with an action brought by
a qui tam plaintiff under subsection 2, the qui tam plaintiff shall, subject to
subparagraph (2), receive at least fifteen percent but not more than
twenty-five percent of the proceeds of the action or settlement of the claim,
depending upon the extent to which the qui tam plaintiff substantially
contributed to the prosecution of the action.
(2) If the action is one which the court finds to be
based primarily on disclosures of specific information, other than information
provided by the qui tam plaintiff, relating to allegations or transactions in a
criminal, civil, or administrative hearing, or in a legislative, administrative
or state auditor report, hearing, audit, or investigation, or from the news
media, the court may award an amount the court considers appropriate, but in no
case more than ten percent of the proceeds, taking into account the
significance of the information and the role of the qui tam plaintiff in
advancing the case to litigation.
(3) Any payment to a qui tam plaintiff under
subparagraph (1) or (2) shall be made from the proceeds. Any such qui tam
plaintiff shall also receive an amount for reasonable expenses which the
appropriate court finds to have been necessarily incurred, plus reasonable
attorney fees and costs. All such expenses, fees, and costs shall be awarded
against the defendant.
b. If the state does not proceed with an action
under this section, the qui tam plaintiff or person settling the claim shall
receive an amount which the court decides is reasonable for collecting the
civil penalty and damages. The amount shall be not less than twenty-five
percent and not more than thirty percent of the proceeds of the action or
settlement and shall be paid out of such proceeds. Such qui tam plaintiff or
person shall also receive an amount for reasonable expenses which the court
finds to have been necessarily incurred, plus reasonable attorney fees and
costs. All such expenses, fees, and costs shall be awarded against the
defendant.
c. Whether or not the state proceeds with the
action, if the court finds that the action was brought by a qui tam plaintiff
who planned and initiated the violation of section 685.2 upon which the action
was brought, the court may, to the extent the court considers appropriate,
reduce the share of the proceeds of the action which the qui tam plaintiff
would otherwise receive under paragraph “a” or “b”, taking into account the
role of that qui tam plaintiff in advancing the case to litigation and any
relevant circumstances pertaining to the violation. If the qui tam plaintiff is
convicted of criminal conduct arising from the qui tam plaintiff’s role in the
violation of section 685.2, the qui tam plaintiff shall be dismissed from the
civil action and shall not receive any share of the proceeds of the action.
Such dismissal shall not prejudice the right of the state to continue the
action represented by the attorney general.
d. If the state does not proceed with the action and
the qui tam plaintiff conducts the action, the court may award to the defendant
reasonable attorney fees and expenses if the defendant prevails in the action
and the court finds that the claim of the qui tam plaintiff was clearly
frivolous, clearly vexatious, or brought primarily for purposes of harassment.
5.
a. A court shall not have jurisdiction over an
action brought by a former or present member of the Iowa national guard under
this chapter against a member of the Iowa national guard arising out of such
person’s services in the Iowa national guard.
b. A qui tam plaintiff shall not bring an action
under subsection 2 which is based upon allegations or transactions which are
the subject of a civil suit or an administrative civil penalty proceeding in
which the state is already a party.
c. A court shall dismiss an action or claim under
this section, unless opposed by the state, if substantially the same
allegations or transactions as alleged in the action or claim were publicly
disclosed in a state criminal, civil, or administrative hearing in which the
state or an agent of the state is a party; in a state legislative, state
auditor, or other state report, hearing, audit, or investigation; or by the
news media, unless the action is brought by the attorney general or the qui tam
plaintiff is an original source of the information.
d. The state is not liable for expenses which a
person incurs in bringing an action under this section.
6.
a. 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, or agent or associated others in furtherance of an action
under this section or other efforts to stop one or more violations of this
chapter.
b. Relief under paragraph “a” shall include
reinstatement with the same seniority status that employee, contractor, or agent
would have had but for the discrimination, two times the amount of back pay,
interest on the back pay, and compensation for any special damages sustained as
a result of the discrimination, including litigation costs and reasonable
attorney fees. An action under this subsection may be brought in the
appropriate district court of the state for the relief provided in this
subsection.
c. A civil action under this subsection shall not be
brought more than three years after the date when the retaliation occurred.
Iowa Code § 685.4. Procedure–statute of limitations
1. A subpoena requiring the
attendance of a witness at a trial or hearing conducted under this chapter may
be served at any place in the state, or through any means authorized in the
Iowa rules of civil procedure.
2. A civil action under this chapter
may not be brought more than six years after the date on which the violation of
section 685.2 is committed, or more than three years after the date when facts
material to the right of action are known or reasonably should have been known
by the official of state charged with responsibility to act in the
circumstances, but in no event more than ten years after the date on which the
violation is committed, whichever occurs last.
3. If the state elects to intervene
and proceed with an action brought under this chapter, the state may file its
own complaint or amend the complaint of a qui tam plaintiff to clarify or add
detail to the claims in which the state is intervening and to add any
additional claims with respect to which the state contends it is entitled to
relief. For statute of limitations purposes, any such state pleading shall
relate back to the filing date of the complaint of the qui tam plaintiff who
originally brought the action, to the extent that the claim of the state arises
out of the conduct, transactions, or occurrences set forth, or attempted to be
set forth, in the prior complaint of that person.
4. In any action brought under
section 685.3, the state shall prove all essential elements of the cause of
action, including damages, by a preponderance of the evidence.
5. Notwithstanding any other
provision of law, the Iowa rules of criminal procedure, or the Iowa rules of
evidence, a final judgment rendered in favor of the state in any criminal
proceeding charging fraud or false statements, whether 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 which involves
the same transaction as in the criminal proceeding and which is brought under
section 685.3.
Iowa Code § 685.5. Jurisdiction
1. Any action under section 685.3 may
be brought in any county in which the defendant or, in the case of multiple
defendants, any one defendant can be found, resides, transacts business, or in
which any act proscribed by section 685.2 occurred. An original notice as
required by the Iowa rules of civil procedure shall be issued by the
appropriate district court and served in accordance with the Iowa rules of
civil procedure.
2. A seal on the action ordered by
the court under section 685.3 shall not preclude the state, local government,
or the qui tam plaintiff from serving the complaint, any other pleadings, or
the written disclosure of substantially all material evidence and information
possessed by the qui tam plaintiff on the law enforcement authorities that are
authorized under the law of the state or local government to investigate and
prosecute such actions on behalf of such governments, except that such seal
applies to the law enforcement authorities so served to the same extent as the
seal applies to other parties in the action.
Iowa Code § 685.6. Civil investigative demands
1. Issuance and service.
a. If the attorney general, or a designee, for the purposes
of this section, has reason to believe that any person may be in possession,
custody, or control of any documentary material or information relevant to a
false claims law investigation, the attorney general, or a designee, may,
before commencing a civil proceeding under section 685.3, subsection 1, or
other false claims law, or making an election under section 685.3, subsection
2, issue in writing and cause to be served upon such person, a civil
investigative demand requiring any of the following of such person:
(1) To produce such documentary material for
inspection and copying.
(2) To answer in writing, written interrogatories
with respect to such documentary material or information.
(3) To give oral testimony concerning such
documentary material or information.
(4) To furnish any combination of such material,
answers, or testimony.
b. The attorney general may delegate the authority
to issue civil investigative demands under this subsection. If a civil
investigative demand is an express demand for any product of discovery, the
attorney general, a deputy attorney general, or an assistant attorney general
shall cause to be served, in any manner authorized by this section, a copy of
such demand upon the person from whom the discovery was obtained and shall
notify the person to whom such demand is issued of the date on which such copy
was served. Any information obtained by the attorney general or a designee of
the attorney general under this section may be shared with any qui tam
plaintiff if the attorney general or designee determines it is necessary as
part of any false claims law investigation.
2. Contents and deadlines.
a. Each civil investigative demand issued under
subsection 1 shall state the nature of the conduct constituting the alleged
violation of a false claims law which is under investigation, and the
applicable provision of law alleged to be violated.
b. If such demand is for the production of
documentary material, the demand shall provide all of the following:
(1) Describe each class of documentary material to
be produced with such definiteness and certainty as to permit such material to
be fairly identified.
(2) Prescribe a return date for each such class
which will provide a reasonable period of time within which the material so
demanded may be assembled and made available for inspection and copying.
(3) Identify the false claims law investigator to
whom such material shall be made available.
c. If such demand is for answers to written
interrogatories, the demand shall provide for all of the following:
(1) Set forth with specificity the written
interrogatories to be answered.
(2) Prescribe dates at which time answers to written
interrogatories shall be submitted.
(3) Identify the false claims law investigator to
whom such answers shall be submitted.
d. If such demand is for the giving of oral
testimony, the demand shall provide for all of the following:
(1) Prescribe a date, time, and place at which oral
testimony shall be commenced.
(2) Identify a false claims law investigator who
shall conduct the examination and the custodian to whom the transcript of such
examination shall be submitted.
(3) Specify that such attendance and testimony are
necessary to the conduct of the investigation.
(4) Notify the person receiving the demand of the
right to be accompanied by an attorney and any other representative.
(5) Describe the general purpose for which the
demand is being issued and the general nature of the testimony, including the
primary areas of inquiry, which will be taken pursuant to the demand.
e. Any civil investigative demand issued under this
section which is an express demand for any product of discovery shall not be
returned or returnable until twenty days after a copy of such demand has been
served upon the person from whom the discovery was obtained.
f. The date prescribed for the commencement of oral
testimony pursuant to a civil investigative demand issued under this section
shall be a date which is not less than seven days after the date on which
demand is received, unless the attorney general or an assistant attorney
general designated by the attorney general determines that exceptional
circumstances are present which warrant the commencement of such testimony
within a lesser period of time.
g. The attorney general shall not authorize the
issuance under this section of more than one civil investigative demand for
oral testimony by the same person, unless the person requests otherwise or
unless the attorney general, after investigation, notifies that person in
writing that an additional demand for oral testimony is necessary.
3. Protected material or information.
a. A civil investigative demand issued under
subsection 1 shall not require the production of any documentary material, the
submission of any answers to written interrogatories, or the giving of any oral
testimony if such material, answers, or testimony would be protected from
disclosure under any of the following:
(1) The standards applicable to subpoenas or
subpoenas duces tecum issued by a court of the state to aid in a grand jury
investigation.
(2) The standards applicable to discovery requests
under the Iowa rules of civil procedure, to the extent that the application of
such standards to any such demand is appropriate and consistent with the
provisions and purposes of this section.
b. Any such demand which is an express demand for
any product of discovery supersedes any inconsistent order, rule, or provision
of law, other than this section, preventing or restraining disclosure of such
product of discovery to any person. Disclosure of any product of discovery
pursuant to any such express demand does not constitute a waiver of any right
or privilege which the person making such disclosure may be entitled to invoke
to resist discovery of trial preparation materials.
4. Service.
a. Any civil investigative demand issued under
subsection 1 may be served by a false claims law investigator, or by any
official authorized to issue civil investigative demands.
b. Service of any civil investigative demand issued
under subsection 1 or of any petition filed under subsection 9 may be made upon
a partnership, corporation, association, or other legal entity by any of the
following methods:
(1) Delivering an executed copy of such demand or
petition to any partner, executive officer, managing agent, or general agent of
the partnership, corporation, association, or entity, or to any agent
authorized by appointment or by law to receive service of process on behalf of
such partnership, corporation, association, or entity.
(2) Delivering an executed copy of such demand or
petition to the principal office or place of business of the partnership,
corporation, association, or entity.
(3) Depositing an executed copy of such demand or
petition in the United States mails by registered or certified mail, with a
return receipt requested, addressed to such partnership, corporation,
association, or entity at its principal office or place of business.
c. Service of any such demand or petition may be
made upon any natural person by any of the following methods:
(1) Delivering an executed copy of such demand or
petition to the person.
(2) Depositing an executed copy of such demand or
petition in the United States mails by registered or certified mail, with a
return receipt requested, addressed to the person at the person’s residence or
principal office or place of business.
d. A verified return by the individual serving any
civil investigative demand issued under subsection 1 or any petition filed
under subsection 9 setting forth the manner of such service shall be proof of
such service. In the case of service by registered or certified mail, such
return shall be accompanied by the return post office receipt of delivery of
such demand.
5. Documentary material.
a. The production of documentary material in
response to a civil investigative demand served under this section shall be
made under a sworn certificate, in such form as the demand designates, by the
following persons, as applicable:
(1) In the case of a natural person, the person to
whom the demand is directed.
(2) In the case of a person other than a natural
person, a person having knowledge of the facts and circumstances relating to
such production and authorized to act on behalf of such person.
b. The certificate shall state that all of the
documentary material required by the demand and in the possession, custody, or
control of the person to whom the demand is directed has been produced and made
available to the false claims law investigator identified in the demand.
c. Any person upon whom any civil investigative
demand for the production of documentary material has been served under this
section shall make such material available for inspection and copying to the
false claims law investigator identified in such demand at the principal place
of business of such person, or at such other place as the false claims law
investigator and the person agree and prescribe in writing, or as the court may
direct under subsection 9. Such material shall be made available on the return
date specified in such demand, or on such later date as the false claims law
investigator may prescribe in writing. Such person may, upon written agreement
between the person and the false claims law investigator, substitute copies for
originals of all or any part of such material.
6. Interrogatories.
a. Each interrogatory in a civil investigative
demand served under this section shall be answered separately and fully in
writing under oath and shall be submitted under a sworn certificate, in such
form as the demand designates, by the following persons, as applicable:
(1) In the case of a natural person, the person to
whom the demand is directed.
(2) In the case of a person other than a natural
person, the person or persons responsible for answering each interrogatory.
b. If any interrogatory is objected to, the reasons
for the objection shall be stated in the certificate instead of an answer. The
certificate shall state that all information required by the demand and in the
possession, custody, control, or knowledge of the person to whom the demand is
directed has been submitted. To the extent that any information is not
furnished, the information shall be identified and reasons set forth with
particularity regarding the reasons why the information was not furnished.
7. Oral examinations.
a. The examination of any person pursuant to a civil
investigative demand for oral testimony served under this section shall be
taken before an officer authorized to administer oaths and affirmations by the
laws of this state or of the place where the examination is held. The officer
before whom the testimony is to be taken shall put the witness on oath or
affirmation and shall, personally or by someone acting under the direction of
the officer and in the officer’s presence, record the testimony of the witness.
The testimony shall be taken stenographically and shall be transcribed. When
the testimony is fully transcribed, the officer before whom the testimony is
taken shall promptly transmit a copy of the transcript of the testimony to the
custodian. This subsection shall not preclude the taking of testimony by any
means authorized by, and in a manner consistent with, the Iowa rules of civil
procedure.
b. The false claims law investigator conducting the
examination shall exclude from the place where the examination is held all
persons except the person giving the testimony, the attorney for and any other
representative of the person giving the testimony, the attorney for the state,
any person who may be agreed upon by the attorney for the state and the person
giving the testimony, the officer before whom the testimony is to be taken, and
any stenographer taking such testimony.
c. The oral testimony of any person taken pursuant
to a civil investigative demand served under this section shall be taken in any
state in which such person resides, is found, or transacts business, or in such
other place as may be agreed upon by the false claims law investigator
conducting the examination and such person.
d. When the testimony is fully transcribed, the
false claims law investigator or the officer before whom the testimony is taken
shall afford the witness, who may be accompanied by counsel, a reasonable
opportunity to examine and read the transcript, unless such examination and
reading are waived by the witness. Any changes in form or substance which the
witness desires to make shall be entered and identified upon the transcript by
the officer or the false claims law investigator, with a statement of the
reasons given by the witness for making such changes. The transcript shall then
be signed by the witness, unless the witness in writing waives the signing, is
ill, cannot be found, or refuses to sign. If the transcript is not signed by
the witness within thirty days after being afforded a reasonable opportunity to
examine the transcript, the officer or the false claims law investigator shall
sign the transcript and state on the record the fact of the waiver, illness,
absence of the witness, or the refusal to sign, together with the reasons, if
any, for the waiver, illness, absence, or refusal.
e. The officer before whom the testimony is taken
shall certify on the transcript that the witness was sworn by the officer and
that the transcript is a true record of the testimony given by the witness, and
the officer or false claims law investigator shall promptly deliver the
transcript, or send the transcript by registered or certified mail, to the
custodian.
f. Upon payment of reasonable charges for a copy,
the false claims law investigator shall furnish a copy of the transcript to the
witness only, except that the attorney general, the deputy attorney general, or
an assistant attorney general may, for good cause, limit such witness to
inspection of the official transcript of the witness’ testimony.
g.
(1) Any person compelled to appear for oral
testimony under a civil investigative demand issued under subsection 1 may be
accompanied, represented, and advised by counsel. Counsel may advise such
person, in confidence, with respect to any question asked of such person. Such
person or counsel may object on the record to any question, in whole or in
part, and shall briefly state for the record the reason for the objection. An
objection may be made, received, and entered upon the record when it is claimed
that such person is entitled to refuse to answer the question on the grounds of
any constitutional or other legal right or privilege, including the privilege
against self-incrimination. Such person may not otherwise object to or refuse
to answer any question, and may not directly or through counsel otherwise
interrupt the oral examination. If such person refuses to answer any question,
a petition may be filed in the district court of the state under subsection 9
for an order compelling such person to answer such question.
(2) If such person refuses to answer any question on
the grounds of the privilege against self-incrimination, the testimony of such
person may be compelled in accordance with applicable law.
h. Any person appearing for oral testimony under a
civil investigative demand issued under subsection 1 shall be entitled to the
same fees and allowances which are paid to witnesses in the district courts of
the state.
8. Custodians of documents, answers,
and transcripts.
a. The attorney general shall designate a false
claims law investigator to serve as custodian of documentary material, answers
to interrogatories, and transcripts of oral testimony received under this
section, and shall designate such additional false claims law investigators as
the attorney general determines from time to time to be necessary to serve as
deputies to the custodian.
b.
(1) A false claims law investigator who receives any
documentary material, answers to interrogatories, or transcripts of oral
testimony under this section shall transmit them to the custodian. The custodian
shall take physical possession of such material, answers, or transcripts and
shall be responsible for their use and for the return of documentary material
under paragraph “d”.
(2) The custodian may cause the preparation of such
copies of such documentary material, answers to interrogatories, or transcripts
of oral testimony as may be required for official use by any false claims law
investigator, or other officer or employee of the department of justice. Such
material, answers, and transcripts may be used by any such authorized false
claims law investigator or other officer or employee in connection with the
taking of oral testimony under this section.
(3) Except as otherwise provided in this subsection,
documentary material, answers to interrogatories, or transcripts of oral
testimony, or copies of documentary materials, answers, or transcripts, while
in the possession of the custodian, shall not be available for examination by
any individual other than a false claims law investigator or other officer or
employee of the department of justice authorized under subparagraph (2). This
prohibition on the availability of material, answers, or transcripts shall not
apply if consent is given by the person who produced such material, answers, or
transcripts, or, in the case of any product of discovery produced pursuant to
an express demand for such material, consent is given by the person from whom
the discovery was obtained. Nothing in this subparagraph is intended to prevent
disclosure to the general assembly, including any committee or subcommittee of
the general assembly, or to any other agency of the state for use by such
agency in furtherance of its statutory responsibilities.
(4) While in the possession of the custodian and
under such reasonable terms and conditions as the attorney general shall
prescribe, all of the following shall apply, as applicable:
(a) Documentary material and answers to
interrogatories shall be available for examination by the person who produced
such material or answers, or by a representative of that person authorized by
that person to examine such material and answers.
(b) Transcripts of oral testimony shall be available
for examination by the person who produced such testimony, or by a
representative of that person authorized by that person to examine such
transcripts.
c. If an attorney of the department of justice has
been designated to appear before any court, grand jury, state agency, or
federal agency in any case or proceeding, the custodian of any documentary
material, answers to interrogatories, or transcripts of oral testimony received
under this section may deliver to such attorney such material, answers, or
transcripts for official use in connection with any such case or proceeding as
such attorney determines to be required. Upon the completion of any such case
or proceeding, such attorney shall return to the custodian any such material,
answers, or transcripts delivered which have not passed into the control of
such court, grand jury, or agency through introduction into the record of such
case or proceeding.
d. If any documentary material has been produced by
any person in the course of any false claims law investigation pursuant to a
civil investigative demand under this section, and any case or proceeding
before the court or grand jury arising out of such investigation, or any
proceeding before any state agency or federal agency involving such material,
has been completed, or a case or proceeding in which such material may be used
has not been commenced within a reasonable time after completion of the
examination and analysis of all documentary material and other information
assembled in the course of such investigation, the custodian shall, upon
written request of the person who produced such material, return to such person
any such material, other than copies furnished to the false claims law
investigator under subsection 5 or made for the department of justice under
paragraph “b” which has not passed into the control of any court, grand jury,
or agency through introduction into the record of such case or proceeding.
e.
(1) In the event of the death, disability, or
separation from service in the department of justice of the custodian of any
documentary material, answers to interrogatories, or transcripts of oral
testimony produced pursuant to a civil investigative demand under this section,
or in the event of the official relief of such custodian from responsibility
for the custody and control of such material, answers, or transcripts, the
attorney general shall promptly do all of the following:
(a) Designate another false claims law investigator
to serve as custodian of such material, answers, or transcripts.
(b) Transmit in writing to the person who produced
such material, answers, or testimony notice of the identity and address of the
successor designated.
(2) Any person who is designated to be a successor
under this paragraph “e” shall have, with regard to such material, answers, or
transcripts, the same duties and responsibilities as were imposed by this
section upon that person’s predecessor in office, except that the successor
shall not be held responsible for any default or dereliction which occurred
before that designation.
9. Judicial proceedings.
a. If a person fails to comply with any civil
investigative demand issued under subsection 1, or if satisfactory copying or
reproduction of any material requested in such demand cannot be completed and
such person refuses to surrender such material, the attorney general may file,
in the district court of the state for any county in which such person resides,
is found, or transacts business, and serve upon such person, a petition for an
order of such court for the enforcement of the civil investigative demand.
b.
(1) A person who has received a civil investigative
demand issued under subsection 1 may file, in the district court of the state
for the county within which such person resides, is found, or transacts
business, and serve upon the false claims law investigator identified in such
demand, a petition for an order of the court to modify or set aside such
demand. In the case of a petition addressed to an express demand for any
product of discovery, a petition to modify or set aside such demand may be
brought only in the district court of the state for the county in which the
proceeding in which such discovery was obtained is or was last pending. Any
petition under this paragraph shall be filed in accordance with the following,
as applicable:
(a) Within twenty days after the date of service of
the civil investigative demand, or at any time before the return date specified
in the demand, whichever date is earlier.
(b) Within such longer period as may be prescribed
in writing by any false claims law investigator identified in the demand.
(2) The petition shall specify each ground upon
which the petitioner relies in seeking relief under subparagraph (1), and may
be based upon any failure of the demand to comply with the provisions of this
section or upon any constitutional or other legal right or privilege of such
person. During the pendency of the petition in the court, the court may stay,
as it deems proper, the running of the time allowed for compliance with the
demand, in whole or in part, except that the person filing the petition shall
comply with any portions of the demand not sought to be modified or set aside.
c.
(1) In the case of any civil investigative demand
issued under subsection 1 which is an express demand for any product of
discovery, the person from whom such discovery was obtained may file, in the
district court of the state for the county in which the proceeding in which
such discovery was obtained is or was last pending, and serve upon any false
claims law investigator identified in the demand and upon the recipient of the
demand, a petition for an order of such court to modify or set aside those
portions of the demand requiring production of any such product of discovery.
Any petition under this subparagraph shall be filed in accordance with the
following, as applicable:
(a) Within twenty days after the date of service of
the civil investigative demand, or at any time before the return date specified
in the demand, whichever date is earlier.
(b) Within such longer period as may be prescribed
in writing by any false claims law investigator identified in the demand.
(2) The petition shall specify each ground upon
which the petitioner relies in seeking relief under subparagraph (1), and may
be based upon any failure of the portions of the demand from which relief is
sought to comply with the provisions of this section, or upon any
constitutional or other legal right or privilege of the petitioner. During the
pendency of the petition, the court may stay, as it deems proper, compliance
with the demand and the running of the time allowed for compliance with the
demand.
d. At any time during which any custodian is in
custody or control of any documentary material or answers to interrogatories
produced, or transcripts of oral testimony given, by any person in compliance
with any civil investigative demand issued under subsection 1, such person, and
in the case of an express demand for any product of discovery, the person from
whom such discovery was obtained, may file, in the district court of the state
for the judicial district within which the office of such custodian is located,
and serve upon such custodian, a petition for an order of such court to require
the performance by the custodian of any duty imposed upon the custodian by this
section.
e. If a petition is filed in any district court of
the state under this subsection, such court shall have jurisdiction to hear and
determine the matter so presented, and to enter such order or orders as may be
required to carry out the provisions of this section. Any final order so
entered shall be subject to appeal in accordance with the Iowa rules of civil
procedure. Any disobedience of any final order entered under this section by
any court shall be punished as a contempt of the court.
f. The Iowa rules of civil procedure shall apply to
any petition under this subsection, to the extent that such rules are not
inconsistent with the provisions of this section.
10. Disclosure exemption. Any
documentary material, answers to written interrogatories, or oral testimony
provided under any civil investigative demand issued under subsection 1 shall
be deemed confidential and exempt from disclosure under chapter 22.
Iowa Code § 685.7. Rulemaking authority
The attorney general may adopt such
rules and regulations as are necessary to effectuate the purposes of this
chapter.