Pennsylvania SB 38: 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.

Bill Text

PRINTER'S NO. 341
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 38
Session of
2025
INTRODUCED BY L. WILLIAMS, PHILLIPS-HILL, SAVAL, FONTANA, DUSH,
COMITTA, COLLETT, TARTAGLIONE, COSTA, FARRY, HUGHES, SCHWANK,
STEFANO AND MUTH, MARCH 6, 2025
REFERRED TO HEALTH AND HUMAN SERVICES, MARCH 6, 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.
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 relates to Commonwealth fraud prevention.
Section 1402-E. Declaration of policy.
The General Assembly declares that this article adopts the
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intent of Congress in enacting 31 U.S.C. §§ 3729 (relating to
false claims), 3730 (relating to civil actions for false
claims), 3731 (relating to false claims procedure), 3732
(relating to false claims jurisdiction) and 3733 (relating to
civil investigative demands) on September 13, 1982, including
the amendments enacted October 27, 1986, and all subsequent
amendments.
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:
(i) An employee, officer or agent of the
Commonwealth.
(ii) A contractor, grantee or other recipient, and
any portion of the money or property that will be spent
or used on the Commonwealth's behalf or to advance a
program or interest of the Commonwealth, and 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 which is requested or demanded.
(2) The term does not include requests or demands for
money or property that the Commonwealth has paid to an
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individual as compensation for employment or as an income
subsidy with no restrictions on the individual's use of the
money or property.
(3) To the extent 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.
"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.
"Material." A natural tendency to influence, or be capable
of influencing, the payment or receipt of money or property.
"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.
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"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
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.
(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 or
proceeding.
(8) Applications, motions, memoranda and briefs
submitted to a court or other tribunal.
(9) Communications with investiga