Colorado § 24-31-1207 - False claims civil investigation demands.

§ 24-31-1207. False claims civil investigation demands.

(1) When the attorney general has reasonable cause to believe that any person, whether in this state or elsewhere, has engaged in or is engaging in any violation of section 24-31-1203, the attorney general may:

(a) Request the person file a statement or report in writing under oath or otherwise, on forms prescribed by the attorney general, as to all facts and circumstances concerning the alleged violations by the person and any other data and information the attorney general deems necessary; except that the person is not required to disclose any information that is protected by the person's attorney-client privilege unless the privilege was waived, inadvertently or otherwise, by the person who holds the privilege; an exception to the privilege applies; or disclosure of the information is permitted by an attorney pursuant to 17 CFR 205.3 (d)(2), the applicable Colorado rules of professional conduct, or otherwise.

(b) Examine under oath any person in connection with the alleged violations;

(c) Examine any property or sample thereof, or any nonprivileged record, book, document, account, or paper the attorney general deems necessary;

(d) Make true copies, at the expense of the attorney general, of any nonprivileged record, book, document, account, or paper examined pursuant to subsection (1)(c) of this section, which copies may be offered into evidence in lieu of the originals thereof in an action brought pursuant to this part 12; and

(e) Pursuant to any order of any district court, impound any sample of property that is material to any alleged violation of this part 12 and retain the same in the attorney general's possession until completion of all proceedings undertaken pursuant to this part 12. A district court shall not issue an order described in this subsection (1)(e) without giving full opportunity to the accused to be heard and unless the attorney general has proven by clear and convincing evidence that the order will not impair the business activities of the person to whom the order is directed.

(2) When the attorney general has reasonable cause to believe that a person, whether in this state or elsewhere, has engaged in or is engaging in a violation of section 24-31-1203, the attorney general may issue subpoenas to require the attendance of witnesses or the production of documents, administer oaths, conduct hearings in aid of any investigation or inquiry, and prescribe such forms as may be necessary to administer this part 12.

(3) The attorney general may issue subpoenas to any public or private corporation or partnership or association or governmental entity to produce witnesses to appear and give oral testimony at investigative hearings. The subpoenas may designate with reasonable particularity the matters on which examination is requested. In response to the subpoena, the entity shall designate one or more officers, directors, or managing agents, or designate other persons, to testify on its behalf.

(4) A notice or subpoena may be served in the manner prescribed by law or as provided in rule 4 of the Colorado rules of civil procedure.

(5) (a) If the records of a person who has been issued a subpoena are located outside this state, the person shall either:

(I) Make them available to the attorney general either electronically or at a convenient location within this state; or

(II) Pay the reasonable and necessary expenses for the attorney general, or the attorney general's designee, to examine the records at the place where they are maintained.

(b) The attorney general may designate representatives, including comparable officials of the state in which the records are located, to inspect the records on behalf of the attorney general.

(6) If any person fails to cooperate with any investigation pursuant to this section or fails to obey any subpoena issued pursuant to this section, the attorney general may apply to the appropriate district court for an appropriate order to effectuate the purposes of this part 12. At the request of the attorney general, the application may be filed in camera and kept confidential to maintain the confidentiality of the attorney general's investigation. The application must state that there are reasonable grounds to believe that the order applied for is necessary to investigate a violation of this part 12. If the court is satisfied that reasonable grounds exist, the court in its order may:

(a) Grant appropriate injunctive relief;

(b) Require attendance of or the production of documents by the person, or both;

(c) Grant other or further relief as may be necessary to obtain compliance by the person.

Source: L. 2022: Entire part added, (HB 22-1119), ch. 394, p. 2793, § 2, effective August 10.