The proposed bill amends the Human Services Code of Pennsylvania by introducing ARTICLE XIV-E, titled "Liability for False Claims," which establishes a comprehensive framework for addressing false claims against the Commonwealth. This new article aligns with the Federal False Claims Act and includes definitions, liability scope, and the Attorney General's responsibilities for investigating and prosecuting violations. Key provisions of the bill impose triple damages for fraudulent claims, civil penalties, and create a Fraud Prevention and Recovery Account to support enforcement efforts. It also allows for qui tam actions, enabling private individuals to file lawsuits on behalf of the Commonwealth, and outlines the process for these actions, including the Attorney General's role in reviewing evidence and the conditions for intervention or dismissal.

Additionally, the bill amends existing laws regarding civil investigative demands and qui tam actions, enhancing the clarity and efficiency of the investigative process. It specifies procedures for serving demands, producing documentary materials, and conducting oral examinations, while protecting individuals' rights. The bill establishes financial awards for qui tam plaintiffs based on their contributions and clarifies that the Commonwealth is not liable for their expenses. It also prohibits employers from retaliating against employees who report violations and empowers the Attorney General to create regulations for implementation. The act is set to take effect 120 days after its passage, aiming to enhance accountability and deter fraudulent activities that undermine public welfare programs in Pennsylvania.

Statutes/Laws affected:
Printer's No. 2081 (Jul 02, 2025): P.L.31, No.21