[§661-26]  Rights of parties to qui tam
actions.  (a)  If the State proceeds with an action under section 661-25,
the State shall have the primary responsibility for prosecuting the action and
shall not be bound by an act of the person bringing the action.  The person
shall have the right to continue as a party to the action, subject to the
following limitations:



(1)  The State may dismiss the action notwithstanding
the objections of the person initiating the action if the court determines,
after a hearing on the motion, that dismissal should be allowed;



(2)  The State may settle the action with the
defendant notwithstanding the objections of the person initiating the action if
the court determines, after a hearing, that the proposed settlement is fair,
adequate, and reasonable.  Upon a showing of good cause, the hearing may be
held in camera;



(3)  The court, upon a showing by the State that
unrestricted participation during the course of the litigation by the person
initiating the action would interfere with or unduly delay the State's
prosecution of the case, or would be repetitious, irrelevant, or for purposes
of harassment, may, in its discretion impose limitations on the person's
participation by:



(A)  Limiting the number of witnesses the
person may call;



(B)  Limiting the length of the testimony of
the witnesses;



(C)  Limiting the person's cross-examination of
witnesses; or



(D)  Otherwise limiting the participation by
the person in the litigation.



(b)  The defendant, by motion upon the court,
may show that unrestricted participation during the course of the litigation by
the person initiating the action would be for purposes of harassment or would
cause the defendant undue burden or unnecessary expense.  At the court's
discretion, the court may limit the participation by the person in the
litigation.



(c)  If the State elects not to proceed with
the action, the person who initiated that action shall have the right to
conduct the action.  If the State so requests, it shall be served with copies
of all pleadings filed in the action and shall be supplied with copies of all
deposition transcripts at the State's expense. When a person proceeds with the
action, the court without limiting the status and rights of the person
initiating the action, may nevertheless permit the State to intervene at a
later date upon showing of good cause.



(d)  Whether or not the State proceeds with the
action, upon motion and a showing by the State that certain actions of
discovery by the person initiating the action would interfere with the State's
investigation or prosecution of a criminal or civil matter arising out of the
same facts, the court may stay the discovery for a period of not more than
sixty days.  The court may extend the sixty-day period upon a motion and showing
by the State that the State has pursued the investigation or prosecution of the
criminal or civil matter with reasonable diligence and the proposed discovery
would interfere with the ongoing investigation or prosecution of the criminal
or civil matter.



(e)  Notwithstanding section 661-25, the State
may elect to pursue its claim through any alternate remedy available to the
State, including any administrative proceedings to determine civil monetary
penalties.  If any alternate remedy is pursued in another proceeding, the
person initiating the action shall have the same rights in the proceedings as
the person would have had if the action had continued under this section.  Any
finding of fact or conclusion of law made in the other proceeding that becomes
final shall be conclusive on all parties to an action under this section.



(f)  Whether or not the State elects to proceed
with the action, the parties to the action shall receive court approval of any
settlements reached. [L 2000, c 126, pt of §1]