Corporate Compliance

OIG: States aren’t meeting incentive requirements under the Deficit Reduction Act

Compliance Monitor, January 10, 2007

Despite the promise of financial incentives offered to states with laws that meet the OIG state false claims acts criteria, only three states' laws have qualified so far. Only the laws in Illinois, Massachusetts, and Tennessee meet all of the Deficit Reduction Act's (DRA) requirements to qualify for incentives, according to the OIG's review of the states' laws.

Although the DRA provides financial incentives to states that enact their own false claims acts, the state laws must meet certain requirements in the DRA to qualify for those incentives. In August, the OIG published a Federal Register notice outlining its guidelines for reviewing the laws and also invited states to request OIG review of their laws.

The OIG has added a new section to its Web site specifically devoted to reviewing state false claims acts, and so far has posted reviews of laws from California, Florida, Illinois, Louisiana, Massachusetts, Michigan, Nevada, Tennessee, and Texas.

According to the OIG reviews, the laws that don't meet all DRA requirements can be amended and submitted for review by the OIG again. Go to the OIG Web site to read the reviews.

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