HOUSE BILL 355

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Al Park

AN ACT

RELATING TO PUBLIC WORKS; ENACTING THE FALSE CLAIMS ACT; PROVIDING FOR PENALTIES; AUTHORIZING INVESTIGATIONS BY THE ATTORNEY GENERAL; AUTHORIZING CIVIL ACTIONS; CREATING THE FALSE CLAIMS ACT FUND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. SHORT TITLE.--This act may be cited as the "False Claims Act".

     Section 2. DEFINITIONS.--As used in the False Claims Act:
          A. "claim" means a request or demand for money, property or services made to an employee, officer or agent of the state or a political subdivision of the state or to a contractor, grantee or other recipient, whether under contract or not, if any portion of the money, property or services requested or demanded issued or would issue from or was provided by the state or any political subdivision of the state;

          B. "knowing" and "knowingly" mean that a person, with respect to information:
                (1) has actual knowledge of the information;
                (2) acts in deliberate ignorance of the truth or falsity of the information; or

                (3) acts in reckless disregard of the truth or falsity of the information;

          C. "qui tam" means an action brought under a statute that allows a person to sue for a recovery, part of which the state or a political subdivision of the state will receive;

          D. "political subdivision" includes any public agency or city, city and county, county, tax or assessment district, or legally authorized local governmental entity with jurisdictional boundaries;

          E. "political subdivision funds" means a portion of the money, property or services requested or demanded by a claimant to be issued from or provided by a political subdivision of the state;

          F. "prosecuting authority" means any public agency general counsel, county counsel, city attorney or local government official charged with investigating, filing and conducting civil legal proceedings on behalf of, or in the name of, a particular political subdivision; and

          G. "state funds" means a portion of the money, property or services requested or demanded to be issued from or provided by the state.

     Section 3. LIABILITY FOR DAMAGES.--
          A. A person who commits any of the acts in this section shall be liable to the state or to a political subdivision of the state for three times the amount of damages that the state or the political subdivision of the state sustains because of the act of that person. A person shall also be liable to the state or to a political subdivision of the state for the costs of a civil action brought to recover any of those penalties or damages and may be liable to the state or the political subdivision of the state for a civil penalty of up to ten thousand dollars ($10,000) for each false claim if a person:

                (1) knowingly presents or causes to be presented to an officer or employee of the state or of a political subdivision of the state a false claim for payment or approval;
                (2) knowingly makes or causes to be made, uses or used a false record or statement to get a false claim paid or approved by the state or by a political subdivision of the state;
                (3) conspires to defraud the state or a political subdivision of the state by getting a false claim allowed or paid by the state or by a political subdivision of the state;
                (4) has possession, custody or control of public property or money used or to be used by the state or by a political subdivision of the state and knowingly delivers or causes to be delivered less property than the amount for which the person receives a certificate or receipt;
               (5) is authorized to make or deliver a document certifying receipt of property used or to be used by the state or by a political subdivision of the state and knowingly makes or delivers a receipt that falsely represents the property used or to be used;
                (6) knowingly buys or receives as a pledge of an obligation or debt public property from any person who lawfully may not sell or pledge the property;
                (7) knowingly makes or causes to be made, uses or used a false record or statement to conceal, avoid or decrease an obligation to pay or transmit money or property to the state or to a political subdivision of the state; or
                (8) is a beneficiary of an inadvertent submission of a false claim to the state or a political subdivision of the state, subsequently discovers the falsity of the claim and fails to disclose the false claim to the state or a political subdivision of the state within a reasonable time after discovery of the false claim.
          B. Notwithstanding the provisions of Subsection A of this section, the court may assess not less than two times and not more than three times the amount of damages that the state or a political subdivision of the state sustains because of an act of a person pursuant to Subsection A of this section but may not assess a civil penalty if the court finds all of the following:
                (1) the person committing the violation furnishes officials of the state or of a political subdivision of the state responsible for investigating false claims violations with all information known to that person about the violation within thirty days after the date on which the person first obtained the information;
                (2) the person fully cooperates with any investigation by the state or a political subdivision of the state of the violation; and

                (3) at the time the person furnished the state or the political subdivision of the state with information about the violation, no criminal prosecution, civil action or administrative action had commenced with respect to the violation and the person did not have actual knowledge of the existence of an investigation into the violation.
          C. Proof of specific intent to defraud is not required for liability for damages.    
          D. Liability pursuant to this section shall be joint and several for any act committed by two or more persons.
          E. This section does not apply to any controversy involving an amount of less than five hundred dollars ($500) in value.

          F. For purposes of this section, "controversy" means any one or more false claims submitted by the same person in violation of the False Claims Act.
          G. This section does not apply to claims, records or statements made pursuant to the Workers' Compensation Act.
          H. This section does not apply to claims, records or statements made under Chapter 7 NMSA 1978.

     Section 4. INVESTIGATIONS--CIVIL ACTIONS.--
          A. The attorney general shall investigate violations under the False Claims Act involving state funds. If the attorney general finds that a person has violated or is violating the False Claims Act, the attorney general may bring a civil action pursuant to that act against that person.
          B. If the attorney general brings a civil action under the False Claims Act on a claim involving political subdivision funds as well as state funds, the attorney general shall on the same date that the complaint is filed in this action serve by certified mail, return receipt requested, a copy of the complaint on the appropriate prosecuting authority.

          C. A prosecuting authority shall have the right to intervene in an action brought by the attorney general pursuant to Subsections A through C of this section within sixty days after receipt of a complaint pursuant to Subsection B of this section. The court may permit intervention thereafter upon a showing that all of the requirements for intervention under the New Mexico rules of civil procedure have been met.
          D. A prosecuting authority of a political subdivision of the state shall investigate violations under the False Claims Act involving political subdivision funds. If the prosecuting authority finds that a person has violated or is violating the False Claims Act, the prosecuting authority may bring a civil action pursuant to this section against that person.
          E. If a prosecuting authority brings a civil action under this section on a claim involving state funds as well as political subdivision funds, the prosecuting authority shall on the same date that the complaint is filed in this action serve a copy of the complaint on the attorney general.

          F. Within sixty days after receiving a complaint pursuant to Subsection E of this section, the attorney general shall:

                (1) notify the court that the attorney general intends to proceed with the action, in which case the attorney general shall assume primary responsibility for conducting the action and the prosecuting authority shall have the right to continue as a party; or
                (2) notify the court that the attorney general declines to proceed with the action, in which case the prosecuting authority shall have the right to conduct the action.
          G. A person may bring a civil action for a violation pursuant to the False Claims Act on the person's behalf and either the state of New Mexico, in the name of the state if any state funds are involved, or a political subdivision of the state, in the name of the political subdivision of the state if political subdivision funds are exclusively involved. The person bringing the action shall be referred to as the qui tam plaintiff. Once filed, the action may be dismissed only with the written consent of the court after taking into account the best interests of the parties involved and the public purposes behind the False Claims Act.
          H. A complaint filed by a person pursuant to Subsections G through W of this section shall be filed in New Mexico district court in camera and may remain under seal for up to sixty days. No service shall be made on the defendant until after the complaint is unsealed.
          I. On the same day as a complaint is filed pursuant to Subsection H of this section, the qui tam plaintiff shall serve by certified mail, return receipt requested, the attorney general with a copy of the complaint and a written disclosure of substantially all material evidence and information the person possesses.
          J. Within sixty days after receiving a complaint and written disclosure of material evidence and information alleging violations that involve state funds but not political subdivision funds, the attorney general may elect to intervene and proceed with the action.
          K. The attorney general may, for good cause, move the court for extensions of the time during which a complaint remains under seal pursuant to Subsection H of this section. The motion may be supported by affidavits or other submissions in camera.
          L. Before expiration of the sixty-day period pursuant to Subjection J of this section or any extensions obtained pursuant to Subsection K of this section, the attorney general shall:
                (1) notify the court that the attorney general intends to proceed with the action, in which case the action shall be conducted by the attorney general and the seal shall be lifted; or
                (2) notify the court that the attorney general declines to proceed with the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action.
          M. Within fifteen days after receiving a complaint alleging violations that exclusively involve political subdivision funds, the attorney general shall forward copies of the complaint and written disclosure of material evidence and information to the appropriate prosecuting authority for disposition and shall notify the qui tam plaintiff of the transfer.
          N. Within forty-five days after the attorney general forwards a complaint and written disclosure pursuant to Subsection M of this section, the prosecuting authority may elect to intervene and proceed with the action.
          O. A prosecuting authority may, for good cause, move for extensions of the time during which the complaint remains under seal. The motion may be supported by affidavits or other submissions in camera.
          P. Before the expiration of the forty-five-day period pursuant to Subsection N of this section or any extensions obtained pursuant to Subsection O of this section, the prosecuting authority shall:
                (1) notify the court that it intends to proceed with the action, in which case the action shall be conducted by the prosecuting authority and the seal shall be lifted; or
                (2) notify the court that it declines to proceed with the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action.
          Q. Within fifteen days after receiving a complaint alleging violations that involve both state and political subdivision funds, the attorney general shall forward copies of the complaint and written disclosure to the appropriate prosecuting authority and shall coordinate the attorney general's review and investigation with those of the prosecuting authority.

          R. Within sixty days after receiving a complaint and written disclosure of material evidence and information alleging violations that involve both state and political subdivision funds, the attorney general or the prosecuting authority may elect to intervene and proceed with an action.
          S. The attorney general or a prosecuting authority may, for good cause, move the court for extensions of the time during which a complaint remains under seal pursuant to Subsection H of this section. The motion may be supported by affidavits or other submissions in camera.
          T. Before the expiration of the sixty-day period pursuant to Subsection R of this section or any extensions obtained pursuant to Subsection S of this section, the attorney general shall:
                (1) notify the court that the attorney general intends to proceed with the action, in which case the action shall be conducted by the attorney general and the seal shall be lifted;
                (2) notify the court that the attorney general declines to proceed with the action but that the prosecuting authority of the political subdivision of the state intends to proceed with an action, in which case the seal shall be lifted and the action shall be conducted by the prosecuting authority; or
                (3) notify the court that both the attorney general and the prosecuting authority decline to proceed with an action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct an action.
          U. If the attorney general proceeds with an action pursuant to Paragraph (1) of Subsection T of this section, a prosecuting authority of a political subdivision of the state shall be permitted to intervene in the action within sixty days after the attorney general notifies the court of the attorney general's intentions. The court may authorize intervention upon a showing that all the requirements for intervention have been met pursuant to the New Mexico rules of civil procedure.

          V. The defendant shall not be required to respond to a complaint filed under this section until thirty days after a complaint is unsealed and served upon the defendant pursuant to the New Mexico rules of civil procedure requirements of service.
          W. When a person brings an action pursuant to Subsections G through V of this section, no other person may bring a related action based on the facts underlying the pending action.
          X. No court shall have jurisdiction over an action brought pursuant to Subsections G through W of this section against a member of the New Mexico senate or New Mexico house of representatives, a member of the state judiciary, an elected official in the executive branch of the state or a member of any political subdivision of the state if the action is based on evidence or information known to the state or a political subdivision of the state when the action was brought.

          Y. A person may not bring an action pursuant to Subsections G through W of this section that is based upon allegations or transactions that are the subject of a civil suit or an administrative civil money penalty proceeding in which the state or a political subdivision of the state is already a party.

          Z. No court shall have jurisdiction over an action brought under the False Claims Act based on the public disclosure of allegations or transactions in a criminal, civil or administrative hearing or an investigation, report, hearing or audit conducted by or at the request of the legislature, a state agency, the governing body of a political subdivision of the state or the news media, unless the action is brought by the attorney general or a prosecuting authority of a political subdivision of the state or the person bringing the action is an original source of the information. For purposes of this subsection, "original source" means an individual who has direct and independent knowledge of the information on which the allegations are based, who voluntarily provides the information to the state or a political subdivision of the state before filing an action based on that information and who provides the information that acts as the basis or catalyst for the investigation, hearing, audit or report that led to the public disclosure as described in this subsection.
          AA. No court shall have jurisdiction over an action brought pursuant to Subsections G through W of this section based on information discovered by a present or former employee of the state or political subdivision of the state during the course of the employee's employment unless that employee first, in good faith, exhausted existing internal procedures for reporting and seeking recovery of the falsely claimed sums through official channels and unless the state or the political subdivision of the state failed to act on the information provided within a reasonable period of time.
          BB. If the state or a political subdivision of the state proceeds with an action, the state or political subdivision of the state shall have the primary responsibility for prosecuting the action. The qui tam plaintiff shall have the right to continue as a full party to the action.
          CC. The state or a political subdivision of the state may seek to dismiss an action for good cause notwithstanding the objections of the qui tam plaintiff if the qui tam plaintiff has been notified by the state or the political subdivision of the state of the filing of the motion and the court has provided the qui tam plaintiff with an opportunity to oppose the motion and present evidence at a hearing.
          DD. The state or a political subdivision of the state may settle an action with a defendant notwithstanding the objections of the qui tam plaintiff if the court determines after a hearing providing the qui tam plaintiff an opportunity to present evidence that the proposed settlement is fair, adequate and reasonable under all of the circumstances.

          EE. If the state or a political subdivision of the state elects not to proceed, the qui tam plaintiff shall have the same right to conduct an action as the attorney general or prosecuting authority would have had if it had chosen to proceed pursuant to Subsections G through W of this section. If the state or the political subdivision of the state so requests, and at the state's or political subdivision's expense, the state or the political subdivision of the state shall be served with copies of all pleadings filed in the action and supplied with copies of all deposition transcripts.

          FF. Upon timely application, the court shall permit the state or a political subdivision of the state to intervene in an action with which it had initially declined to proceed if the interest of the state or the political subdivision of the state in the recovery of property or funds involved is not adequately being represented by the qui tam plaintiff.
          GG. If the state or a political subdivision of the state is allowed to intervene pursuant to Subsection FF of this section, the qui tam plaintiff shall retain principal responsibility for the action and the recovery of the parties shall be determined as if the state or the political subdivision of the state had elected not to proceed.
          HH. If the attorney general initiates an action pursuant to Subsections A through C of this section or assumes control of an action initiated by a prosecuting authority pursuant to Paragraph (1) of Subsection F of this section, the office of the attorney general shall receive a fixed thirty-three percent of the proceeds of the action or settlement of the claim, which shall be used to support its ongoing investigation and prosecution of false claims.
          II. If a prosecuting authority initiates and conducts an action pursuant to Subsections D through F of this section, the office of the prosecuting authority shall receive a fixed thirty-three percent of the proceeds of the action or settlement of the claim, which shall be used to support the attorney general's ongoing investigation and prosecution of false claims.

          JJ. If a prosecuting authority intervenes in an action initiated by the attorney general pursuant to Subsection C of this section, or remains a party to an action assumed by the attorney general pursuant Paragraph (1) of Subsection F of this section, the court may award the office of the prosecuting authority a portion of the attorney general's fixed thirty-three percent of the recovery pursuant to Subsection HH of this section, taking into account the prosecuting authority's role in investigating and conducting the action.
          KK. If the state or a political subdivision of the state proceeds with an action brought by a qui tam plaintiff pursuant to Subsections C through W of this section, the qui tam plaintiff shall, pursuant to Subsections MM and NN of this section, receive at least fifteen percent but not more than thirty-three percent of the proceeds of the action or settlement of the claim, depending upon the extent to which the qui tam plaintiff substantially contributes to the prosecution of the action. When conducting the action, the office of the attorney general or the office of the prosecuting authority of a political subdivision of the state shall receive a fixed thirty-three percent of the proceeds of the action or settlement of the claim, which shall be used to support the attorney general's ongoing investigation and prosecution of false claims made against the state or a political subdivision of the state. When both the attorney general and a prosecuting authority of a political subdivision of the state are involved in a qui tam action pursuant to Subsection R of this section, the court, at its discretion, may award the prosecuting authority a portion of the attorney general's fixed thirty-three percent of the recovery, taking into account the prosecuting authority's contribution to investigating and conducting the action.
          LL. If the state or a political subdivision of the state does not proceed with an action pursuant to Subsections G through W of this section, the qui tam plaintiff shall, pursuant to Subsections MM and NN of this section, receive an amount that the court decides is reasonable for collecting the civil penalty and damages on behalf of the government. The amount shall be not less than twenty-five percent and not more than fifty percent of the proceeds of the action or settlement and shall be paid out of these proceeds.
          MM. If an action is one provided for pursuant to Subsection AA of this section, the present or former employee of the state or a political subdivision of the state is not entitled to any minimum guaranteed recovery from the proceeds. The court, however, may award the qui tam plaintiff those sums from the proceeds as it considers appropriate, but in no case more than thirty-three percent of the proceeds if the state or a political subdivision of the state goes forth with an action or fifty percent if the state or a political subdivision of the state declines to go forth, taking into account the significance of the information, the role of the qui tam plaintiff in advancing the case to litigation and the scope of and response to the employee's attempts to report and gain recovery of the falsely claimed funds through official channels.
          NN. If an action is one that the court finds to be based primarily on information from a present or former employee who actively participated in the fraudulent activity, the employee is not entitled to any minimum guaranteed recovery from the proceeds. The court, however, may award the qui tam plaintiff any sums from the proceeds that it considers appropriate but in no case more than thirty-three percent of the proceeds if the state or a political subdivision of the state goes forth with an action or fifty percent if the state or a political subdivision of the state declines to go forth, taking into account the significance of the information, the role of the qui tam plaintiff in advancing the case to litigation, the scope of the present or past employee's involvement in the fraudulent activity, the employee's attempts to avoid or resist the activity and all other circumstances surrounding the activity.
          OO. The portion of the recovery not distributed pursuant to Subsections HH through NN of this section shall revert to the state if the underlying false claims involved state funds exclusively and to the political subdivision of the state if the underlying false claims involved political subdivision funds exclusively. If the violation involved both state and political subdivision funds, the court shall make an apportionment between the state and the political subdivision based on their relative share of the funds falsely claimed.
          PP. If the state, a political subdivision of the state or the qui tam plaintiff prevails in or settles an action pursuant to Subsections G through W of this section, the qui tam plaintiff shall receive an amount for reasonable expenses that the court finds to have been necessarily incurred plus reasonable costs and attorney fees. All expenses, costs and fees shall be awarded against the defendant and under no circumstances shall they be the responsibility of the state or the political subdivision of the state.
          QQ. If the state, a political subdivision of the state or the qui tam plaintiff proceeds with an action, the court may award to the defendant the defendant's reasonable attorney fees and expenses against the party that proceeded with the action if the defendant prevails in the action and the court finds that the claim was clearly frivolous, clearly vexatious or brought solely for purposes of harassment.
          RR. The court may stay an act of discovery of a person initiating an action for a period of not more than sixty days if the attorney general or prosecuting authority shows that the act of discovery would interfere with an investigation or a prosecution of a criminal or civil matter arising out of the same facts, regardless of whether the attorney general or prosecuting authority proceeds with an action. This showing shall be conducted in camera. The court may extend a sixty-day period upon a further showing in camera that the attorney general or prosecuting authority has pursued the criminal or civil investigation or proceedings with reasonable diligence and the proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or proceedings.

          SS. Upon a showing by the attorney general or prosecuting authority that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the attorney general's or prosecuting authority's prosecution of the case, or would be repetitious, irrelevant or for purposes of harassment, the court may, in its discretion, impose limitations on the person's participation, including the following:
                (1) limiting the number of witnesses the person may call;
                (2) limiting the length of the testimony of the witnesses;
                (3) limiting the person's cross-examination of witnesses; or

                (4) otherwise limiting the participation by the person in the litigation.
          TT. As used in this section, "proceeds" include civil penalties as well as double or treble damages pursuant to the False Claims Act.
     Section 5. FALSE CLAIMS ACT FUND CREATED--PURPOSES.--The "False Claims Act fund" is created in the state treasury. All proceeds from the action or settlement of the claim by the attorney general pursuant to the False Claims Act shall be deposited with the state treasurer into the False Claims Act fund. Money in the fund is subject to appropriation by the legislature to the attorney general and shall be used to support the ongoing investigation and prosecution of false claims in furtherance of the False Claims Act.

     Section 6. PROHIBITED ACTIONS BY EMPLOYERS--REMEDIES.--
          A. An employer shall not make, adopt or enforce any rule, regulation or policy preventing an employee from disclosing information to a government or law enforcement agency or from acting in furtherance of a false claims action, including investigating, initiating, testifying or assisting in an action filed or to be filed under the False Claims Act.
          B. An employer shall not discharge, demote, suspend, threaten, harass, deny promotion to or in any other manner discriminate against an employee in the terms and conditions of employment because of lawful acts done by the employee or on behalf of the employee or others in disclosing information to a government or a law enforcement agency or in furthering a false claims action, including investigation for, initiation of, testimony for or assistance in an action filed or to be filed under the False Claims Act.
          C. An employer who violates Subsections D through F of this section shall be liable for all relief necessary to make the employee whole, including reinstatement with the same seniority status that the employee would have had but for the discrimination, two times the amount of back pay, interest on the back pay, compensation for any special damage sustained as a result of the discrimination and, where appropriate, punitive damages. The defendant shall also be required to pay litigation costs and reasonable attorney fees. An employee may bring an action in the appropriate state district court for the relief provided in this section.
          D. An employee who is discharged, demoted, suspended, harassed, denied promotion or in any other manner discriminated against in the terms and conditions of employment by the employee's employer because of participation in conduct which directly or indirectly results in a false claim being submitted to the state or a political subdivision of the state shall be entitled to the remedies pursuant to Subsections G through W of this section if:
                (1) the employee voluntarily disclosed information to a government or law enforcement agency or acted in furtherance of a false claims action, including investigation for, initiation of, testimony for or assistance in an action filed or to be filed; and
                (2) the employee had been harassed, threatened with termination or demotion or otherwise coerced by the employer or the employer's management into engaging in the fraudulent activity.
     Section 7. LIMITATIONS PERIOD--ACTIVITY PRIOR TO EFFECTIVE DATE--BURDEN OF PROOF--ESTOPPEL OF DEFENDANT BY GUILTY VERDICT.--

          A. A civil action under the False Claims Act may not be filed more than three years after the date of discovery by the official of the state or a political subdivision of the state charged with responsibility to act in the circumstances or no more than ten years after the date on which the violation of the False Claims Act is committed.
          B. A civil action under the False Claims Act may be brought for activity prior to the effective date of the False Claims Act if the limitations period set in Subsection A of this section has not lapsed.
          C. In an action brought under the False Claims Act, the state, any political subdivision of the state or the qui tam plaintiff shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.
          D. Notwithstanding any other provision of law, a guilty verdict rendered in a criminal proceeding charging false statements or fraud, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, except for a plea of nolo contendere made prior to the effective date of the False Claims Act, shall estop the defendant from denying the essential elements of the offense in any action that involves the same transaction as in the criminal proceeding and that is brought under the False Claims Act.
     Section 8. OTHER REMEDIES.--The provisions of the False Claims Act are not exclusive, and the remedies provided for in that act shall be in addition to any other remedies provided for in other law or available under common law. The False Claims Act shall be liberally construed and applied to promote the public interests.

     Section 9. TIMELY SERVICE OF NOTICE.--

          A. If a violation of the False Claims Act is alleged or the application or construction of that act is in issue in any proceeding in the supreme court of New Mexico, New Mexico court of appeals or district court, the person or the political subdivision of the state that commenced the proceeding shall serve a copy of the notice or petition initiating the proceeding and a copy of each paper, including briefs, that the person or the political subdivision of the state files in the proceeding within three days of the filing on the attorney general.
          B. Timely compliance with the three-day period pursuant to Subsection A of this section is a jurisdictional prerequisite to the entry of judgment, order or decision construing or applying the False Claims Act by the court in which the proceeding occurs, except that within that three-day period or thereafter, the time for compliance may be extended by the court for good cause.

          C. The court shall extend the time period within which the attorney general is permitted to respond to an action subject to this section by at least the same period of time granted for good cause pursuant to Subsection B of this section to the person or the political subdivision of the state that commenced the proceeding.
     Section 10. SEVERABILITY.--If any part or application of the False Claims Act is held invalid, the remainder or its application to other situations or persons shall not be affected.

     Section 11. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2005.

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