Pennsylvania HB 1697: An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, providing for liability for false claims, for adoption of congressional intent of the Federal False Claims Act, for damages, costs and civil penalties, for powers of Attorney General, for qui tam actions and for civil investigative demands; and establishing the Fraud Prevention and Recovery Account.

Bill Text

PRINTER'S NO. 2081
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1697
Session of
2025
INTRODUCED BY BURNS, PASHINSKI AND GIRAL, JULY 2, 2025
REFERRED TO COMMITTEE ON JUDICIARY, JULY 2, 2025
AN ACT
Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
act to consolidate, editorially revise, and codify the public
welfare laws of the Commonwealth," providing for liability
for false claims, for adoption of congressional intent of the
Federal False Claims Act, for damages, costs and civil
penalties, for powers of Attorney General, for qui tam
actions and for civil investigative demands; and establishing
the Fraud Prevention and Recovery Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of June 13, 1967 (P.L.31, No.21), known
as the Human Services Code, is amended by adding an article to
read:
ARTICLE XIV-E
LIABILITY FOR FALSE CLAIMS
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 1401-E. Scope of article.
This article shall be known and may be cited as the Taxpayer
Prevention Against Fraud Act.
Section 1402-E. Declaration of policy.
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The General Assembly declares that this article adopts the
intent of Congress in enacting the Federal False Claims Act
(Public Law 97-258, 31 U.S.C. § 3729 et seq.) on September 13,
1982, including the amendments enacted October 27, 1986 (Public
Law 99-562, 100 Stat. 3153).
Section 1403-E. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Claim." As follows:
(1) A request or demand for money or property, whether
under contract or otherwise and regardless of whether the
Commonwealth has title to the money or property, that is
presented, submitted or otherwise made to any of the
following:
(i) An employee, officer or agent of the
Commonwealth.
(ii) A contractor, grantee or other recipient, if
any portion of the money or property will be spent or
used on the Commonwealth's behalf or to advance a program
or interest of the Commonwealth, and if the Commonwealth:
(A) provides or has provided any portion of the
money or property requested or demanded; or
(B) will reimburse the contractor, grantee or
other recipient for any portion of the money or
property that is requested or demanded.
(2) The term does not include requests or demands for
money or property that the Commonwealth has paid to an
individual as compensation for employment or as an income
subsidy with no restrictions on the individual's use of the
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money or property.
(3) To the extent that it is not connected to a request
or demand for money or property, a filing with a Commonwealth
agency pursuant to the Commonwealth's insurance laws shall
not constitute a claim.
"Knowing" and "knowingly." As follows:
(1) Whenever a person, with respect to information, does
any of the following:
(i) Has actual knowledge of the information.
(ii) Acts in deliberate ignorance of the truth or
falsity of the information.
(iii) Acts in reckless disregard of the truth or
falsity of the information.
(2) Proof of specific intent to defraud is not required.
"Legal claim." A claim for relief at law or equity, whether
contemplated or asserted, including any claim, demand, account,
note or any other cause of action or liability.
"Obligation." An established duty, whether or not fixed,
arising from any of the following:
(1) An express or implied contractual relationship.
(2) An express or implied grantor-grantee relationship.
(3) An express or implied licensor-licensee
relationship.
(4) A fee-based or similar relationship.
(5) A statute or regulation.
(6) The retention of an overpayment.
"Official use." A use that is consistent with the law and
the regulations and policies of the Office of Attorney General,
including the following:
(1) Use in connection with internal memoranda and
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reports.
(2) Communications between the Office of Attorney
General and a Federal, State or local government agency or a
contractor of a Federal, State or local government agency,
undertaken in furtherance of an investigation or prosecution
of an action or case.
(3) Interviews of a qui tam plaintiff or other witness.
(4) Oral examinations.
(5) Depositions.
(6) Preparation for and response to civil discovery
requests.
(7) Introduction into the record of an action, case or
proceeding.
(8) Applications, motions, memoranda and briefs
submitted to a court or other tribunal.
(9) Communications with investigators, auditors,
consultants and experts, the counsel of other parties,
arbitrators and mediators, concerning an investigation,
action, case or proceeding.
"Original source." An individual who:
(1) prior to a public disclosure under