20-77-903. Restitution, damages, and civil penalties.

20-77-903. Restitution, damages, and civil penalties. (a)(1) It shall be unlawful for any person to commit any act prohibited by § 20-77-902, and any person found to have committed any such act or acts shall be liable to the State of Arkansas through the Attorney General. (2) In a case in which direct monetary loss does not exist or in which it is difficult or impossible to determine the extent of the loss, the Attorney General may elect to seek a civil penalty based on the number of fraudulent claims submitted. (3) The state shall make an election and give notice in the complaint whether the state is seeking a civil penalty of: (A) Not less than five hundred dollars ($500) but not more than ten thousand dollars ($10,000) for each claim; or (B) Two (2) times the amount of damages that the state sustained because of the act of the person. (b) When a person or Medicaid provider discovers an employee or subcontractor working for the person or Medicaid provider has committed a violation of this subchapter or a violation under the Medicaid Fraud Act, § 5-55-101 et seq., any statutory liability for civil penalties under this section may be reduced by fifty percent (50%) if a person or Medicaid provider can establish all of the following: (1) The person or Medicaid provider committing the violation of this subchapter furnished officials of the Attorney General's office with all information known to the person or Medicaid provider about the violation within thirty (30) days after the date on which the person or Medicaid provider first obtained the information; and (2) The person or Medicaid provider fully cooperated with any Attorney General's investigation of the violation, and at the time the person or Medicaid provider furnished the Attorney General with the information about the violation: (A) No criminal prosecution, civil action, or administrative action had commenced under this subchapter with respect to the violation; and (B) The person or Medicaid provider did not have actual knowledge of the existence of an investigation into the violation. (c)(1) In addition to any other penalties authorized herein, any person violating this subchapter shall also be liable to the State of Arkansas for the Attorney General's reasonable expenses, including the cost of investigation, attorney's fees, court costs, witness fees, and deposition fees. (2) Any cost or reimbursement ordered under this subsection shall be paid to the office of the Attorney General to be used for future Medicaid investigations and cases. (d)(1) When the loss is to the Arkansas Medicaid Program or its fiscal agents, the entirety of any penalty obtained under subsection (a) of this section less reimbursement of investigation and prosecution costs and any reward that may be determined by the court pursuant to this subchapter shall be credited as special revenues of the State of Arkansas and deposited into the Arkansas Medicaid Program Trust Fund for the sole use of the program. (2) When the loss is to a managed care organization or similar organization that is paid at a capitated rate, the Department of Human Services may return all or a portion of the funds to a managed care organization or any similar organization when permitted by the contract or rules. (e)(1) A person who engages or has engaged in any act described by § 20-77-902 may be enjoined in a court of competent jurisdiction in an action brought by the Attorney General. (2) An injunction described by subdivision (e)(1) of this section shall be: (A) Brought in the name of the state; and (B) Granted if a case is clearly shown that the rights of the state are being violated by the person and the state will suffer immediate and irreparable injury, loss, or damage pending a final judgment in the action or that the acts or omissions of the person will tend to render a final judgment ineffectual. (f) The court may make orders or judgments, including the appointment of a receiver, as necessary to: (1) Prevent any act described by § 20-77-902 by any person; or (2) Restore to the program any money or property, real or personal, that may have been acquired by means of an act described by § 20-77-902.