12650-12656

GOVERNMENT CODE
SECTION 12650-12656




12650.  (a) This article shall be known and may be cited as the
False Claims Act.
   (b) For purposes of this article:
   (1) "Claim" means any request or demand, whether under a contract
or otherwise, for money, property, or services, and whether or not
the state or a political subdivision has title to the money,
property, or services that meets either of the following conditions:
   (A) Is presented to an officer, employee, or agent of the state or
of a political subdivision.
   (B) Is made to a contractor, grantee, or other recipient, if the
money, property, or service is to be spent or used on a state or any
political subdivision program or interest, and if the state or
political subdivision meets either of the following conditions:
   (i) Provides or has provided any portion of the money, property,
or service requested or demanded.
   (ii) Reimburses the contractor, grantee, or other recipient for
any portion of the money, property, or service that is requested or
demanded.
   (2) "Claim" does not include requests or demands for money,
property, or services that the state or a political subdivision has
paid to an individual as compensation for employment with the state
or political subdivision or as an income subsidy with no restrictions
on that individual's use of the money, property, or services.
   (3) "Knowing" and "knowingly" mean that a person, with respect to
information, does any of the following:
   (A) Has actual knowledge of the information.
   (B) Acts in deliberate ignorance of the truth or falsity of the
information.
   (C) Acts in reckless disregard of the truth or falsity of the
information.
   Proof of specific intent to defraud is not required.
   (4) "Material" means having a natural tendency to influence, or be
capable of influencing, the payment or receipt of money, property,
or services.
   (5) "Political subdivision" includes any city, city and county,
county, tax or assessment district, or other legally authorized local
governmental entity with jurisdictional boundaries.
   (6) "Political subdivision funds" means funds that are the subject
of a claim presented to an officer, employee, or agent of a
political subdivision or where the political subdivision provides,
has provided, or will reimburse any portion of the money, property,
or service requested or demanded.
   (7) "Prosecuting authority" refers to the county counsel, city
attorney, or other local government official charged with
investigating, filing, and conducting civil legal proceedings on
behalf of, or in the name of, a particular political subdivision.
   (8) "Person" includes any natural person, corporation, firm,
association, organization, partnership, limited liability company,
business, or trust.
   (9) "State funds" mean funds that are the subject of a claim
presented to an officer, employee, or agent of the state or where the
state provides, has provided, or will reimburse any portion of the
money, property, or service requested or demanded.



12651.  (a) Any person who commits any of the following enumerated
acts in this subdivision shall have violated this article and shall
be liable to the state or to the political subdivision for three
times the amount of damages that the state or political subdivision
sustains because of the act of that person. A person who commits any
of the following enumerated acts shall also be liable to the state or
to the political subdivision for the costs of a civil action brought
to recover any of those penalties or damages, and shall be liable to
the state or political subdivision for a civil penalty of not less
than five thousand dollars ($5,000) and not more than ten thousand
dollars ($10,000) for each violation:
   (1) Knowingly presents or causes to be presented a false or
fraudulent claim for payment or approval.
   (2) Knowingly makes, uses, or causes to be made or used a false
record or statement material to a false or fraudulent claim.
   (3) Conspires to commit a violation of this subdivision.
   (4) Has possession, custody, or control of public property or
money used or to be used by the state or by any political subdivision
and knowingly delivers or causes to be delivered less than all of
that property.
   (5) Is authorized to make or deliver a document certifying receipt
of property used or to be used by the state or by any political
subdivision and knowingly makes or delivers a receipt that falsely
represents the property used or to be used.
   (6) Knowingly buys, or receives as a pledge of an obligation or
debt, public property from any person who lawfully may not sell or
pledge the property.
   (7) 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 to any political subdivision, or
knowingly conceals or knowingly and improperly avoids, or decreases
an obligation to pay or transmit money or property to the state or to
any political subdivision.
   (8) Is a beneficiary of an inadvertent submission of a false
claim, subsequently discovers the falsity of the claim, and fails to
disclose the false claim to the state or the political subdivision
within a reasonable time after discovery of the false claim.
   (b) Notwithstanding subdivision (a), the court may assess not less
than two times and not more than three times the amount of damages
which the state or the political subdivision sustains because of the
act of the person described in that subdivision, and no civil
penalty, if the court finds all of the following:
   (1) The person committing the violation furnished officials of the
state or of the political subdivision responsible for investigating
false claims violations with all information known to that person
about the violation within 30 days after the date on which the person
first obtained the information.
   (2) The person fully cooperated with any investigation by the
state or a political subdivision of the violation.
   (3) At the time the person furnished the state or the political
subdivision 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 under this section shall be joint and several for
any act committed by two or more persons.
   (d) This section does not apply to any controversy involving an
amount of less than five hundred dollars ($500) in value. For
purposes of this subdivision, "controversy" means any one or more
false claims submitted by the same person in violation of this
article.
   (e) This section does not apply to claims, records, or statements
made pursuant to Division 3.6 (commencing with Section 810) of Title
1 or to workers' compensation claims filed pursuant to Division 4
(commencing with Section 3200) of the Labor Code.
   (f) This section does not apply to claims, records, or statements
made under the Revenue and Taxation Code.
   (g) This section does not apply to claims, records, or statements
for the assets of a person that have been transferred to the
Commissioner of Insurance, pursuant to Section 1011 of the Insurance
Code.



12652.  (a) (1) The Attorney General shall diligently investigate
violations under Section 12651 involving state funds. If the Attorney
General finds that a person has violated or is violating Section
12651, the Attorney General may bring a civil action under this
section against that person.
   (2) If the Attorney General brings a civil action under this
subdivision on a claim involving political subdivision funds as well
as state funds, the Attorney General shall, on the same date that the
complaint is filed in this action, serve by mail with "return
receipt requested" a copy of the complaint on the appropriate
prosecuting authority.
   (3) The prosecuting authority shall have the right to intervene in
an action brought by the Attorney General under this subdivision
within 60 days after receipt of the complaint pursuant to paragraph
(2). The court may permit intervention thereafter upon a showing that
all of the requirements of Section 387 of the Code of Civil
Procedure have been met.
   (b) (1) The prosecuting authority of a political subdivision shall
diligently investigate violations under Section 12651 involving
political subdivision funds. If the prosecuting authority finds that
a person has violated or is violating Section 12651, the prosecuting
authority may bring a civil action under this section against that
person.
   (2) If the prosecuting authority brings a civil action under this
section on a claim involving state funds as well as political
subdivision funds, the prosecuting authority shall, on the same date
that the complaint is filed in this action, serve a copy of the
complaint on the Attorney General.
   (3) Within 60 days after receiving the complaint pursuant to
paragraph (2), the Attorney General shall do either of the following:
   (A) Notify the court that it intends to proceed with the action,
in which case the Attorney General shall assume primary
responsibility for conducting the action and the prosecuting
authority shall have the right to continue as a party.
   (B) Notify the court that it declines to proceed with the action,
in which case the prosecuting authority shall have the right to
conduct the action.
   (c) (1) A person may bring a civil action for a violation of this
article for the person and either for the State of California in the
name of the state, if any state funds are involved, or for a
political subdivision in the name of the political subdivision, if
political subdivision funds are exclusively involved. The person
bringing the action shall be referred to as the qui tam plaintiff.
Once filed, the action may be dismissed only with the written consent
of the court and the Attorney General or prosecuting authority of a
political subdivision, or both, as appropriate under the allegations
of the civil action, taking into account the best interests of the
parties involved and the public purposes behind this act. No claim
for any violation of Section 12651 may be waived or released by any
private person, except if the action is part of a court approved
settlement of a false claim civil action brought under this section.
Nothing in this paragraph shall be construed to limit the ability of
the state or political subdivision to decline to pursue any claim
brought under this section.
   (2) A complaint filed by a private person under this subdivision
shall be filed in superior court in camera and may remain under seal
for up to 60 days. No service shall be made on the defendant until
after the complaint is unsealed.
   (3) On the same day as the complaint is filed pursuant to
paragraph (2), the qui tam plaintiff shall serve by mail with "return
receipt requested" the Attorney General with a copy of the complaint
and a written disclosure of substantially all material evidence and
information the person possesses.
   (4) Within 60 days after receiving a complaint and written
disclosure of material evidence and information alleging violations
that involve state funds but not political subdivision funds, the
Attorney General may elect to intervene and proceed with the action.
   (5) The Attorney General may, for good cause shown, move the court
for extensions of the time during which the complaint remains under
seal pursuant to paragraph (2). The motion may be supported by
affidavits or other submissions in camera.
   (6) Before the expiration of the 60-day period or any extensions
obtained under paragraph (5), the Attorney General shall do either of
the following:
   (A) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the Attorney General
and the seal shall be lifted.
   (B) Notify the court that it declines to proceed with the action,
in which case the seal shall be lifted and the qui tam plaintiff
shall have the right to conduct the action.
   (7) (A) Within 15 days after receiving a complaint alleging
violations that exclusively involve political subdivision funds, the
Attorney General shall forward copies of the complaint and written
disclosure of material evidence and information to the appropriate
prosecuting authority for disposition, and shall notify the qui tam
plaintiff of the transfer.
   (B) Within 45 days after the Attorney General forwards the
complaint and written disclosure pursuant to subparagraph (A), the
prosecuting authority may elect to intervene and proceed with the
action.
   (C) The prosecuting authority may, for good cause shown, move for
extensions of the time during which the complaint remains under seal.
The motion may be supported by affidavits or other submissions in
camera.
   (D) Before the expiration of the 45-day period or any extensions
obtained under subparagraph (C), the prosecuting authority shall do
either of the following:
   (i) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the prosecuting
authority and the seal shall be lifted.
   (ii) Notify the court that it declines to proceed with the action,
in which case the seal shall be lifted and the qui tam plaintiff
shall have the right to conduct the action.
   (8) (A) Within 15 days after receiving a complaint alleging
violations that involve both state and political subdivision funds,
the Attorney General shall forward copies of the complaint and
written disclosure to the appropriate prosecuting authority, and
shall coordinate its review and investigation with those of the
prosecuting authority.
   (B) Within 60 days after receiving a complaint and written
disclosure of material evidence and information alleging violations
that involve both state and political subdivision funds, the Attorney
General or the prosecuting authority, or both, may elect to
intervene and proceed with the action.
   (C) The Attorney General or the prosecuting authority, or both,
may, for good cause shown, move the court for extensions of the time
during which the complaint remains under seal under paragraph (2).
The motion may be supported by affidavits or other submissions in
camera.
   (D) Before the expiration of the 60-day period or any extensions
obtained under subparagraph (C), the Attorney General shall do one of
the following:
   (i) Notify the court that it intends to proceed with the action,
in which case the action shall be conducted by the Attorney General
and the seal shall be lifted.
   (ii) Notify the court that it declines to proceed with the action
but that the prosecuting authority of the political subdivision
involved intends to proceed with the action, in which case the seal
shall be lifted and the action shall be conducted by the prosecuting
authority.
   (iii) Notify the court that both it and the prosecuting authority
decline to proceed with the action, in which case the seal shall be
lifted and the qui tam plaintiff shall have the right to conduct the
action.
   (E) If the Attorney General proceeds with the action pursuant to
clause (i) of subparagraph (D), the prosecuting authority of the
political subdivision shall be permitted to intervene in the action
within 60 days after the Attorney General notifies the court of its
intentions. The court may authorize intervention thereafter upon a
showing that all the requirements of Section 387 of the Code of Civil
Procedure have been met.
   (9) The defendant shall not be required to respond to any
complaint filed under this section until 30 days after the complaint
is unsealed and served upon the defendant pursuant to Section 583.210
of the Code of Civil Procedure.
   (10) When a person brings an action under this subdivision, no
other person may bring a related action based on the facts underlying
the pending action.
   (d) (1) No court shall have jurisdiction over an action brought
under subdivision (c) against a Member of the State Senate or
Assembly, a member of the state judiciary, an elected official in the
executive branch of the state, or a member of the governing body of
any political subdivision if the action is based on evidence or
information known to the state or political subdivision when the
action was brought.
   (2) A person may not bring an action under subdivision (c) that is
based upon allegations or transactions that are the subject of a
civil suit or an administrative civil money penalty proceeding in
which the state or political subdivision is already a party.
   (3) (A) No court shall have jurisdiction over an action under this
article based upon the public disclosure of allegations or
transactions in a criminal, civil, or administrative hearing, in an
investigation, report, hearing, or audit conducted by or at the
request of the Senate, Assembly, auditor, or governing body of a
political subdivision, or by the news media, unless the action is
brought by the Attorney General or the prosecuting authority of a
political subdivision, or the person bringing the action is an
original source of the information.
   (B) For purposes of subparagraph (A), "original source" means an
individual who has direct and independent knowledge of the
information on which the allegations are based, who voluntarily
provided the information to the state or political subdivision before
filing an action based on that information, and whose information
provided the basis or catalyst for the investigation, hearing, audit,
or report that led to the public disclosure as described in
subparagraph (A).
   (4) No court shall have jurisdiction over an action brought under
subdivision (c) based upon information discovered by a present or
former employee of the state or a political subdivision during the
course of his or her employment unless that employee first, in good
faith, exhausted existing internal procedures for reporting and
seeking recovery of the falsely claimed sums through official
channels and unless the state or political subdivision failed to act
on the information provided within a reasonable period of time.
   (e) (1) If the state or political subdivision proceeds with the
action, it shall have the primary responsibility for prosecuting the
action. The qui tam plaintiff shall have the right to continue as a
full party to the action.
   (2) (A) The state or political subdivision may seek to dismiss the
action for good cause notwithstanding the objections of the qui tam
plaintiff if the qui tam plaintiff has been notified by the state or
political subdivision of the filing of the motion and the court has
provided the qui tam plaintiff with an opportunity to oppose the
motion and present evidence at a hearing.
   (B) The state or political subdivision may settle the action with
the defendant notwithstanding the objections of the qui tam plaintiff
if the court determines, after a hearing providing the qui tam
plaintiff an opportunity to present evidence, that the proposed
settlement is fair, adequate, and reasonable under all of the
circumstances.
   (f) (1) If the state or political subdivision elects not to
proceed, the qui tam plaintiff shall have the same right to conduct
the action as the Attorney General or prosecuting authority would
have had if it had chosen to proceed under subdivision (c). If the
state or political subdivision so requests, and at its expense, the
state or political subdivision shall be served with copies of all
pleadings filed in the action and supplied with copies of all
deposition transcripts.
   (2) (A) Upon timely application, the court shall permit the state
or political subdivision to intervene in an action with which it had
initially declined to proceed if the interest of the state or
political subdivision in recovery of the property or funds involved
is not being adequately represented by the qui tam plaintiff.
   (B) If the state or political subdivision is allowed to intervene
under paragraph (A), the qui tam plaintiff shall retain principal
responsibility for the action and the recovery of the parties shall
be determined as if the state or political subdivision had elected
not to proceed.
   (g) (1) (A) If the Attorney General initiates an action pursuant
to subdivision (a) or assumes control of an action initiated by a
prosecuting authority pursuant to subparagraph (A) of paragraph (3)
of subdivision (b), the office of the Attorney General shall receive
a fixed 33 percent of the proceeds of the action or settlement of the
claim, which shall be used to support its ongoing investigation and
prosecution of false claims.
   (B) If a prosecuting authority initiates and conducts an action
pursuant to subdivision (b), the office of the prosecuting authority
shall receive a fixed 33 percent of the proceeds of the action or
settlement of the claim, which shall be used to support its ongoing
investigation and prosecution of false claims.
   (C) If a prosecuting authority intervenes in an action initiated
by the Attorney General pursuant to paragraph (3) of subdivision (a)
or remains a party to an action assumed by the Attorney General
pursuant to subparagraph (A) of paragraph (3) of subdivision (b), the
court may award the office of the prosecuting authority a portion of
the Attorney General's fixed 33 percent of the recovery under
subparagraph (A), taking into account the prosecuting authority's
role in investigating and conducting the action.
   (2) If the state or political subdivision proceeds with an action
brought by a qui tam plaintiff under subdivision (c), the qui tam
plaintiff shall, subject to paragraphs (4) and (5), receive at least
15 percent but not more than 33 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. When it conducts the action, the Attorney General's office
or the office of the prosecuting authority of the political
subdivision shall receive a fixed 33 percent of the proceeds of the
action or settlement of the claim, which shall be used to support its
ongoing investigation and prosecution of false claims made against
the state or political subdivision. When both the Attorney General
and a prosecuting authority are involved in a qui tam action pursuant
to subparagraph (C) of paragraph (6) of subdivision (c), the court
at its discretion may award the prosecuting authority a portion of
the Attorney General's fixed 33 percent of the recovery, taking into
account the prosecuting authority's contribution to investigating and
conducting the action.
   (3) If the state or political subdivision does not proceed with an
action under subdivision (c), the qui tam plaintiff shall, subject
to paragraphs (4) and (5), receive an amount that the court decides
is reasonable for collecting the civil penalty and damages on behalf
of the government. The amount shall be not less than 25 percent and
not more than 50 percent of the proceeds of the action or settlement
and shall be paid out of these proceeds.
   (4) If the action is one provided for under paragraph (4) of
subdivision (d), the present or former employee of the state or
political subdivision is not entitled to any minimum guaranteed
recovery from the proceeds. The court, however, may award the qui tam
plaintiff those sums from the proceeds as it considers appropriate,
but in no case more than 33 percent of the proceeds if the state or
political subdivision goes forth with the action or 50 percent if the
state or political subdivision declines to go forth, taking into
account the significance of the information, the role of the qui tam
plaintiff in advancing the case to litigation, and the scope of, and
response to, the employee's attempts to report and gain recovery of
the falsely claimed funds through official channels.
   (5) If the action is one that the court finds to be based
primarily on information from a present or former employee who
actively participated in the fraudulent activity, the employee is not
entitled to any minimum guaranteed recovery from the proceeds. The
court, however, may award the qui tam plaintiff any sums from the
proceeds that it considers appropriate, but in no case more than 33
percent of the proceeds if the state or political subdivision goes
forth with the action or 50 percent if the state or political
subdivision declines to go forth, taking into account the
significance of the information, the role of the qui tam plaintiff in
advancing the case to litigation, the scope of the present or past
employee's involvement in the fraudulent activity, the employee's
attempts to avoid or resist the activity, and all other circumstances
surrounding the activity.
   (6) The portion of the recovery not distributed pursuant to
paragraphs (1) to (5), inclusive, shall revert to the state if the
underlying false claims involved state funds exclusively and to the
political subdivision if the underlying false claims involved
political subdivision funds exclusively. If the violation involved
both state and political subdivision funds, the court shall make an
apportionment between the state and political subdivision based on
their relative share of the funds falsely claimed.
   (7) For purposes of this section, "proceeds" include civil
penalties as well as double or treble damages as provided in Section
12651.
   (8) If the state, political subdivision, or the qui tam plaintiff
prevails in or settles any action under subdivision (c), the qui tam
plaintiff shall receive an amount for reasonable expenses that the
court finds to have been necessarily incurred, plus reasonable costs
and attorney's fees. All expenses, costs, and fees shall be awarded
against the defendant and under no circumstances shall they be the
responsibility of the state or political subdivision.
   (9) If the state, a political subdivision, or the qui tam
plaintiff proceeds with the action, the court may award to the
defendant its reasonable attorney's fees and expenses against the
party that proceeded with the action if the defendant prevails in the
action and the court finds that the claim was clearly frivolous,
clearly vexatious, or brought primarily for purposes of harassment.
   (h) The court may stay an act of discovery of the person
initiating the action for a period of not more than 60 days if the
Attorney General or local prosecuting authority show that the act of
discovery would interfere with an investigation or a prosecution of a
criminal or civil matter arising out of the same facts, regardless
of whether the Attorney General or local prosecuting authority
proceeds with the action. This showing shall be conducted in camera.
The court may extend the 60-day period upon a further showing in
camera that the Attorney General or local prosecuting authority 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.
   (i) Upon a showing by the Attorney General or local prosecuting
authority that unrestricted participation during the course of the
litigation by the person initiating the action would interfere with
or unduly delay the Attorney General's or local prosecuting authority'
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 person's participation, including the following:
   (1) Limiting the number of witnesses the person may call.
   (2) Limiting the length of the testimony of the witnesses.
   (3) Limiting the person's cross-examination of witnesses.
   (4) Otherwise limiting the participation by the person in the
litigation.
   (j) The False Claims Act Fund is hereby created in the State
Treasury. Proceeds from the action or settlement of the claim by the
Attorney General pursuant to this article shall be deposited into
this fund. Moneys in this fund, upon appropriation by the
Legislature, shall be used by the Attorney General to support the
ongoing investigation and prosecution of false claims in furtherance
of this article.



12652.5.  Notwithstanding any other provision of law, the University
of California shall be considered a political subdivision, and the
General Counsel of the University of California shall be considered a
prosecuting authority for the purposes of this article, and shall
have the right to intervene in an action brought by the Attorney
General or a private party or investigate and bring an action,
subject to Section 12652, if it is determined that the claim involves
the University of California.



12653.  (a) No employer shall make, adopt, or enforce any rule,
regulation, or policy preventing an employee from disclosing
information to a government or law enforcement agency or from acting
in furtherance of a false claims action, including investigating,
initiating, testifying, or assisting in an action filed or to be
filed under Section 12652.
   (b) No employer shall discharge, demote, suspend, threaten,
harass, deny promotion to, or in any other manner discriminate
against, an employee in the terms and conditions of employment
because of lawful acts done by the employee on behalf of the employee
or others in disclosing information to a government or law
enforcement agency or in furthering a false claims action, including
investigation for, initiation of, testimony for, or assistance in, an
action filed or to be filed under Section 12652.
   (c) An employer who violates subdivision (b) shall be liable for
all relief necessary to make the employee whole, including
reinstatement with the same seniority status that the employee would
have had but for the discrimination, two times the amount of back
pay, interest on the back pay, compensation for any special damage
sustained as a result of the discrimination, and, where appropriate,
punitive damages. In addition, the defendant shall be required to pay
litigation costs and reasonable attorneys' fees. An employee may
bring an action in the appropriate superior court of the state for
the relief provided in this subdivision.
   (d) An employee who is discharged, demoted, suspended, harassed,
denied promotion, or in any other manner discriminated against in the
terms and conditions of employment by his or her employer because of
participation in conduct which directly or indirectly resulted in a
false claim being submitted to the state or a political subdivision
shall be entitled to the remedies under subdivision (c) if, and only
if, both of the following occur:
   (1) The employee voluntarily disclosed information to a government
or law enforcement agency or acted in furtherance of a false claims
action, including investigation for, initiation of, testimony for, or
assistance in an action filed or to be filed.
   (2) The employee had been harassed, threatened with termination or
demotion, or otherwise coerced by the employer or its management
into engaging in the fraudulent activity in the first place.



12654.  (a) A civil action under Section 12652 may not be filed more
than three years after the date of discovery by the Attorney General
or prosecuting authority with jurisdiction to act under this article
or, in any event, not more than 10 years after the date on which the
violation of Section 12651 was committed.
   (b) A civil action under Section 12652 may be brought for activity
prior to January 1, 1988, if the limitations period set in
subdivision (a) has not lapsed.
   (c) In any action brought under Section 12652, the state, the
political subdivision, or the qui tam plaintiff shall be required to
prove all essential elements of the cause of action, including
damages, by a preponderance of the evidence.
   (d) Notwithstanding any other provision of law, a guilty verdict
rendered in a criminal proceeding charging false statements or fraud,
whether upon a verdict after trial or upon a plea of guilty or nolo
contendere, except for a plea of nolo contendere made prior to
January 1, 1988, 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
subdivision (a), (b), or (c) of Section 12652.
   (e) Subdivision (b) of Section 47 of the Civil Code shall not be
applicable to any claim subject to this article.



12655.  (a) The provisions of this article are not exclusive, and
the remedies provided for in this article shall be in addition to any
other remedies provided for in any other law or available under
common law.
   (b) If any provision of this article or the application thereof to
any person or circumstance is held to be unconstitutional, the
remainder of the article and the application of the provision to
other persons or circumstances shall not be affected thereby.
   (c) This article shall be liberally construed and applied to
promote the public interest.



12656.  (a) If a violation of this article is alleged or the
application or construction of this article is in issue in any
proceeding in the Supreme Court of California, a state court of
appeal, or the appellate division of a superior court, the person or
political subdivision that commenced that proceeding shall serve a
copy of the notice or petition initiating the proceeding, and a copy
of each paper, including briefs, that the person or political
subdivision files in the proceeding within three days of the filing,
on the Attorney General, directed to the attention of the False
Claims Section in Sacramento, California.
   (b) Timely compliance with the three-day time period is a
jurisdictional prerequisite to the entry of judgment, order, or
decision construing or applying this article by the court in which
the proceeding occurs, except that within that three-day period or
thereafter, the time for compliance may be extended by the court for
good cause.
   (c) The court shall extend the time period within which the
Attorney General is permitted to respond to an action subject to this
section by at least the same period of time granted for good cause
pursuant to subdivision (b) to the person or political subdivision
that commenced the proceeding.