The proposed bill amends the Human Services Code of Pennsylvania by introducing a new article, ARTICLE XIV-E, titled "Liability for False Claims." This article establishes a comprehensive framework for addressing false claims against the Commonwealth, aligning with the Federal False Claims Act. It defines essential terms and outlines the responsibilities of the Attorney General in investigating and prosecuting violations. Individuals found liable for false claims may face significant penalties, including triple damages and civil penalties, while the bill also details conditions for limiting damages. Additionally, it empowers the Attorney General to represent the Commonwealth in civil actions related to false claims and allows for qui tam actions, enabling private individuals to sue on behalf of the Commonwealth. The legislation emphasizes transparency and accountability in public fund usage and establishes a Fraud Prevention and Recovery Account to support these efforts.

The bill further amends existing laws regarding qui tam actions, civil investigative demands, and the handling of documentary materials. It introduces provisions for the court to hold proceedings in camera, allows for partial lifting of case seals, and grants the court discretion to limit a qui tam plaintiff's participation if it interferes with the Commonwealth's prosecution. Financial awards for qui tam plaintiffs are specified, with varying percentages based on the Commonwealth's involvement in the action. The bill also clarifies procedures for serving civil investigative demands, producing documentary materials, and conducting oral examinations, while ensuring individuals' rights are protected. It mandates the Attorney General to report on the outcomes of qui tam actions and establishes protections for individuals facing retaliation for reporting violations. Overall, the bill aims to enhance the effectiveness of false claims investigations and ensure compliance with federal standards.

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