False claims: taxation.

Senator Allen's legislation expands California's False Claims Act to encompass tax-related fraud cases that exceed specific financial thresholds, while strengthening protections for whistleblowers who report violations. The bill applies to cases where damages exceed $200,000 or when the defendant's annual taxable income, gross receipts, or total sales surpass $500,000.

The measure authorizes the Attorney General and local prosecuting authorities to access confidential tax records necessary for investigating suspected violations, while maintaining strict confidentiality requirements. Complaints filed by private individuals must remain sealed for at least 60 days before service on defendants, allowing authorities time to investigate allegations. The legislation also establishes a False Claims Act Fund to support ongoing investigations and prosecutions using proceeds from successful cases.

For whistleblowers, the bill explicitly protects both current and former employees who share information about potential violations, even when such disclosures may violate employment agreements or contractual obligations. Protected individuals who face retaliation can seek reinstatement, double back pay with interest, and special damages through civil actions filed within three years of the retaliatory conduct.