The proposed "False Claims Act" aims to establish civil penalties and remedies for individuals who submit false or fraudulent claims to obtain money, property, or services from the state of Michigan or local governments. It defines key terms such as "claim," "false claim," and "knowing," and outlines the responsibilities of state and local officials in investigating and prosecuting these claims. Individuals found guilty of presenting false claims may face civil penalties ranging from $6,000 to $12,000, along with triple damages for any losses incurred. The bill also allows for qui tam actions, enabling private citizens to file lawsuits on behalf of the state or local government against fraudsters, while providing protections for whistleblowers from retaliation.

Additionally, the bill introduces provisions regarding qui tam actions, allowing local governments to dismiss actions involving damages they have sustained, even against the objections of the qui tam plaintiff, provided the plaintiff is given a chance to be heard. It outlines the financial entitlements of qui tam plaintiffs based on their contributions to the case, with percentages ranging from 15% to 30% of the proceeds depending on whether the attorney general or local government intervenes. The bill also stipulates that if a qui tam plaintiff is found to have initiated the act they are suing over, their share of the proceeds may be reduced, and if convicted of related criminal conduct, they will be dismissed from the action. The attorney general is granted the authority to create rules for implementing the act, further enhancing accountability and deterring fraudulent activities against state and local government resources.