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DEPARTMENT OF HEALTH & HUMAN SERVICES Offce of Inspector General
JUL 24 2008 Washington, D.C. 20201
Elizabeth Staley
Director
Medicaid Fraud and Elder Abuse Division.
State of New Mexico Attorney General's Offce
111 Lomas Boulevard, NW, Suite 300
Albuquerque, New Mexico 87102
Dear Ms. Staley:
The Offce ofInspector General (OIG) of the U.S. Department of Health and Human Services
(HHS) has received your request to review the New Mexico Fraud Against Taxpayers Act, N.M.
Stat. � � 44-9-1 through 44-9-14, under the requirements of section 6031 (b) of the Deficit
Reduction Act (ORA). Section 6031 of the ORA provides a financial incentive for states to
enact laws that establish liability to the state for individuals and entities that submit false or
fraudulent claims to the state Medicaid program. For a state to qualify for this incentive, the state
law must meet certain requirements enumerated under section 6031 (b) of the ORA, as
determined by the Inspector General of HHS in consultation with the Department of Justice
(OOJ). Based on our review of 
the law and consultation with DOJ, we have determined that the
New Mexico Fraud Against Taxpayers Act does not meet the requirements of section 6031 (b) of
the ORA.
Section 6031(b)(2) of the ORA requires the state law to contain provisions that are at least as
effective in rewarding and facilitating qui tam actions for false and fraudulent claims as those
described in sections 3730 through 3732 of the Federal False Claims Act. The Federal False
Claims Act provides that no courtshall have jurisdiction over an action that is based upon a
public disclosure unless the action is brought by the Attorney General or by a relator who is an
"original source" of the information. See 31 U.S.C. � 3730(e)(4). In contrast, the New Mexico
Fraud Against Taxpayers Act, which provides that the court may dismiss an action if the
elements of the alleged false or fraudulent claim have been publicly disclosed in the news media
or in a publicly disseminated governmental report at the time the complaint is filed, does not
provide an exception for a relator who is an "original source." See N.M. Stat. Ann. � 44-9-9(0).
Because the New Mexico Fraud Against Taxpayers Act public disclosure provision does not
include an original source exception, it is not at least as effective in facilitating and rewarding qui
tam actions as the Federal False Claims Act.
Page 2- Ms. Elizabeth Staley
If the New Mexico Fraud Against Taxpayers Act is amended to address the issue noted above,
please notify OIG for further consideration ofthe New Mexico Fraud Against Taxpayers Act. If
you have any questions regarding this review, please contact me, or your staff may contact Karla
Hampton at (202) 205-3158 or karla.hampton�oig.hhs.gov.
Sincerely,~�~
Daniel R. Levinson
Inspector General
cc: Aaron Blight, CMS