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.

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 section 1412-E(f)
(2), has voluntarily disclosed to the Commonwealth the
information on which the allegations or transactions in a
claim are based; or
(2) has knowledge that is independent of and materially
adds to the publicly disclosed allegations or transactions
and who has voluntarily provided the information to the
Commonwealth before filing an action under section 1412-E(b).
"Person." A natural person, corporation, firm, association,
organization, partnership, limited liability company, business,
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trust, business trust, estate or foundation.
"Qui tam plaintiff." A person bringing a civil action under
section 1412-E(b).
"State." In reference to a jurisdiction, the term includes
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands and all permanently inhabited territories of the
United States.
SUBARTICLE B
FALSE CLAIMS
Section 1411-E. Acts subjecting persons to liability and
damages.
(a) Liability.--Except as provided in subsection (b), a
person shall be liable to the Commonwealth for three times the
amount of damages that the Commonwealth sustains, plus a civil
penalty in an amount determined under subsection (d), for each
violation, if the person commits any of the following acts:
(1) Knowingly presents or causes to be presented a false
or fraudulent claim for payment or approval.
(2) Knowingly makes, uses or causes to be made or used,
a false record or statement material to a false or fraudulent
claim.
(3) Has possession, custody or control of property or
money used or to be used by the Commonwealth and knowingly
delivers or causes to be delivered less than all of the money
or property.
(4) Is authorized to make or deliver a document
certifying receipt of property used or to be used by the
Commonwealth and, intending to defraud the Commonwealth,
makes or delivers a receipt without completely knowing that
the information on the receipt is true.
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(5) Knowingly buys or receives, as a pledge of an
obligation or debt, public property from an officer or
employee of the Commonwealth who lawfully may not sell or
pledge the property.
(6) Knowingly makes, uses or causes to be made or used a
false record or statement material to an obligation to pay or
transmit money or property to the Commonwealth or knowingly
conceals, or knowingly and improperly avoids or decreases an
obligation to pay or transmit money or property to the
Commonwealth.
(7) Knowingly fails to disclose a fact, event or
occurrence material to an obligation to pay or transmit money
or property to the Commonwealth.
(8) Is a beneficiary of an inadvertent submission of a
false claim, subsequently discovers the falsity of the claim
and fails to disclose the false claim to the Commonwealth
within a reasonable time after discovery of the false claim.
(9) Conspires to commit a violation of paragraph (1),
(2), (3), (4), (5), (6), (7) or (8).
(b) Damages limitation.--A court may assess not less than
two times the amount of damages that the Commonwealth sustains
from a violation of subsection (a) if the court finds all of the
following:
(1) The person committing the violation furnished the
Commonwealth officials who are responsible for investigating
false claims violations with all information known to that
person about the violation within 30 days after the date on
which the person first obtained the information.
(2) The person fully cooperated with an investigation by
the Commonwealth.
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(3) At the time the person furnished the Commonwealth
with information about the violation, no criminal
prosecution, civil action or administrative action had
commenced with respect to the violation, and the person did
not have actual knowledge of the existence of an
investigation into the violation.
(c) Commonwealth costs.--A person who is liable for damages
or penalties under subsection (a) shall also be liable to the
Commonwealth for the reasonable costs of investigating and
prosecuting violations of subsection (a), including reasonable
costs to the Office of Attorney General.
(d) Civil penalties and adjustments.--The civil penalties
payable under subsection (a) shall be equal to the civil penalty
limits provided under 31 U.S.C. § 3729(a)(1) (relating to false
claims), as adjusted by the Federal Civil Penalties Inflation
Act of 1990 (Public Law 101-410, 28 U.S.C. § 2461 note).
(e) Exemption from disclosure.--The Office of Attorney
General shall be exempt from disclosing under the act of
February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law,
information that is furnished under subsection (b) or accessed
or shared under section 1414-E(a).
(f) Definition.--For purposes of this section, the term
"material" means a natural tendency to influence, or be capable
of influencing, the payment or receipt of money or property.
Section 1412-E. Attorney General investigations and
prosecutions and civil actions.
(a) Responsibilities.--The Attorney General shall represent
the Commonwealth with respect to all matters arising under this
article and is authorized to investigate violations of section
1411-E. If the Attorney General finds that a person has violated
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or is violating section 1411-E, the Attorney General may bring a
civil action under this section against that person for
violating section 1411-E.
(b) Action by qui tam plaintiff.--
(1) A qui tam plaintiff may bring a civil action for a
violation of section 1411-E for the qui tam plaintiff and for
the Commonwealth in the name of the Commonwealth. Once filed,
the action may be dismissed only if the court and the
Attorney General give written consent to the dismissal and
their reasons for consenting.
(2) A copy of the complaint and written disclosure of
substantially all material evidence and information that the
qui tam plaintiff possesses shall be served promptly on the
Attorney General as provided for in the Pennsylvania Rules of
Civil Procedure or applicable court rule. The complaint shall
be filed in camera and shall remain under seal for at least
60 days and shall not be served on the defendant until the
court orders the service. The Commonwealth may elect to
intervene and proceed with the action within 60 days after it
receives the complaint and the material evidence and
information.
(3) Upon motion of the Commonwealth, the court, for good
cause shown, shall extend the time during which the complaint
remains sealed under paragraph (2). The motion may be
supported by affidavits or other submissions in camera. The
defendant shall not be required to respond to a complaint
filed under this section until the complaint is unsealed and
served upon the defendant under the Pennsylvania Rules of
Civil Procedure or other applicable court rule.
(4) Before the expiration of the 60-day period or any
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extensions obtained under paragraph (3), the Commonwealth
shall do either of the following:
(i) proceed with the action, in which case the
action shall be conducted by the Commonwealth; or
(ii) notify the court that the Commonwealth declines
to take over the action, in which case the qui tam
plaintiff shall have the right to conduct the action.
(c) Intervention restricted to Commonwealth.--When a qui tam
plaintiff brings an action under subsection (b), only the
Commonwealth may intervene or bring a related action based on
the facts underlying the pending action.
(d) Rights of the parties to qui tam actions.--
(1) If the Commonwealth proceeds with an action under
subsection (b), it shall have the primary responsibility for
prosecuting the action and shall not be bound by an act of
the qui tam plaintiff. The qui tam plaintiff shall have the
right to continue as a party to the action, subject to the
limitations specified in paragraph (2).
(2) The following shall apply:
(i) The Commonwealth may move to dismiss the action
despite the qui tam plaintiff's objections, if the
Commonwealth notifies the qui tam plaintiff of the
filing. The court may dismiss the action if the court has
provided the qui tam plaintiff with an opportunity to
oppose the motion at a hearing.
(ii) The Commonwealth may settle the action with the
defendant despite the qui tam plaintiff's objections if
the court determines, after a hearing, that the proposed
settlement is fair, adequate and reasonable under all the
circumstances. Upon a showing of good cause, the hearing
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may be held in camera. Upon the Commonwealth's motion,
the court, for good cause shown, shall order a partial
lifting of the seal to facilitate the investigative
process or settlement.
(iii) Upon the Commonwealth's showing that the qui
tam plaintiff's unrestricted participation during the
course of the action would interfere with or unduly delay
the Commonwealth's prosecution of the case or would be
repetitious, irrelevant or for purposes of harassment,
the court may, in its discretion, impose limitations on
the qui tam plaintiff's participation by:
(A) limiting the number of witnesses the qui tam
plaintiff may call;
(B) limiting the length of witness testimony;
(C) limiting the qui tam plaintiff's cross-
examination of witnesses; or
(D) otherwise limiting the qui tam plaintiff's
participation in the action.
(iv) Upon the defendant's showing that the qui tam
plaintiff's unrestricted participation in the action
would be for purposes of harassment or would cause the
defendant undue burden or unnecessary expense, the court
may limit the qui tam plaintiff's participation in the
action.
(3) If the Commonwealth elects not to proceed with the
action, the qui tam plaintiff shall have the right to conduct
the action. If the Commonwealth requests, the Commonwealth
shall be served with copies of all pleadings filed in the
action and shall be supplied with copies of all deposition
transcripts and other discovery produced in the action.
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Without limiting the qui tam plaintiff's status and rights,
the court shall permit the Commonwealth to intervene at a
later date upon a showing of good cause.
(4) Whether or not the Commonwealth proceeds with the
action, upon the Commonwealth's showing, in camera, that
certain actions of discovery by the qui tam plaintiff would
interfere with the Commonwealth'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 60 days. The court may extend the 60-day period
upon the Commonwealth's further showing, in camera, that the
Commonwealth has pursued the criminal or civil investigation
or proceedings with reasonable diligence and that the
discovery proposed in the civil action will interfere with
the ongoing criminal or civil investigations or proceedings.
(5) Notwithstanding subsection (b), the Commonwealth may
elect to pursue legal claims through an alternate remedy
available to the Commonwealth, including an administrative
proceeding to determine a civil money penalty. If the
alternate remedy is pursued in another proceeding, the qui
tam plaintiff shall have the same rights in the proceeding as
if the action had continued under this section. A finding of
fact or conclusion of law made in the other proceeding that
has become final shall be conclusive on all parties to an
action under this section. A finding or conclusion is final
if it has been finally determined on appeal to the
appropriate court of the Commonwealth, if the time for filing
the appeal regarding the finding or conclusion has expired
without an appeal having been filed or if the finding or
conclusion is not subject to judicial review.
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(e) Award to qui tam plaintiff.--
(1) The following shall apply:
(i) If the Commonwealth proceeds with an action
brought by a qui tam plaintiff, the qui tam plaintiff
shall, subject to the provisions of this subsection,
receive at least 15% but not more than 25% of the
proceeds of the action or settlement of the legal claim,
depending upon the extent to which either or both the qui
tam plaintiff and the qui tam plaintiff's counsel
substantially contributed to the prosecution of the
action.
(ii) If the court finds that the action is based
primarily on disclosures of specific information, other
than information provided by the qui tam plaintiff,
relating to allegations or transactions in a criminal,
civil or administrative hearing to which the Commonwealth
is a party, or in a Federal, State or local legislative
or other governmental hearing, report, audit or
investigation or from the news media, the court may award
a sum it considers appropriate, but not more than 10% of
the proceeds of the action or settlement, taking into
account the significance of the information and the qui
tam plaintiff's role in advancing the action.
(2) If the Commonwealth does not proceed with an action
under this section, the qui tam plaintiff shall receive at
least 25% but not more than 30% of the proceeds of the action
or settlement of the legal claim, as the court deems
reasonable.
(3) Whether or not the Commonwealth proceeds with an
action, if the court finds that the qui tam plaintiff planned
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and initiated the violation of section 1411-E upon which the
action was brought, the following shall apply:
(i) Subject to subparagraph (ii), the court may, to
the extent that it considers appropriate, reduce the
share of the proceeds of the action or settlement of the
legal claim that the qui tam plaintiff would otherwise
receive under paragraph (1) or (2), taking into account
the qui tam plaintiff's role in advancing the action and
any relevant circumstances pertaining to the violation.
(ii) If the qui tam plaintiff is convicted of
criminal conduct arising from the qui tam plaintiff's
role in the violation, the qui tam plaintiff shall be
dismissed from the civil action and shall not receive a
share of the proceeds of the action. The dismissal shall
not prejudice the Commonwealth's right to continue the
action.
(4) An award to a qui tam plaintiff shall be made from
the proceeds of the action or settlement of the legal claim.
The qui tam plaintiff also shall receive an amount for
reasonable expenses that the court finds were necessarily
incurred, plus reasonable attorney fees and costs. The
expenses, fees and costs shall be awarded against the
defendant.
(5) If the Commonwealth does not proceed with the action
and the qui tam plaintiff conducts the action, the court may
award to the defendant reasonable attorney fees and expenses
if the defendant prevails in the action and the court finds
that the qui tam plaintiff's legal claim was clearly
frivolous, clearly vexatious or brought primarily for
purposes of harassment.
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(f) Certain actions barred.--
(1) A court shall not have jurisdiction over an action
filed under subsection (b) against the Governor, the
Lieutenant Governor, the Attorney General, the Auditor
General, the Treasurer, a cabinet member, a deputy secretary,
a member of the General Assembly or a member of the judiciary
if the action is based on evidence or information known to
the Commonwealth when the action was brought.
(2) The following shall apply:
(i) Subject to subparagraph (ii), the court shall
dismiss an action or legal claim brought under subsection
(b) if substantially the same allegations or transactions
alleged in the action or legal claim were publicly
disclosed in:
(A) the news media;
(B) a criminal, civil or administrative hearing
in which the Commonwealth is or was a party; or
(C) a Federal, State or local legislative or
other governmental hearing, report, audit or
investigation.
(ii) The court may not dismiss an action under
subparagraph (i) if:
(A) the Attorney General opposes dismissal; or
(B) the qui tam plaintiff is an original source
of the information that is publicly disclosed.
(3) A qui tam plaintiff may not bring an action under
this section that is based upon allegations or transactions
that are the subject of a civil suit or an administrative
civil money penalty proceeding in which the Commonwealth is
already a party.
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(g) Commonwealth not liable for certain expenses.--The
Commonwealth is not liable for expenses that a qui tam plaintiff
incurs in bringing an action under this section.
(h) Cooperation by agencies.--Commonwealth agencies shall
cooperate in the investigation and prosecution of false claims
under this section, whether the investigation is conducted or
suit is brought by the Attorney General or by a qui tam
plaintiff.
(i) Nature of action.--An action under this section is an
action brought by the Commonwealth, as provided in section
204(c) of the act of October 15, 1980 (P.L.950, No.164), known
as the Commonwealth Attorneys Act.
Section 1413-E. Civil investigative demands.
(a) Issuance and service.--
(1) If the Attorney General has reason to believe that a
person may be in possession, custody or control of
documentary material or information relevant to a false
claims investigation under this article, the Attorney General
or a designee may issue in writing and cause to be served
upon the person a civil investigative demand requiring the
person to:
(i) produce documentary material for inspection and
copying;
(ii) answer in writing written interrogatories with
respect to documentary material or information;
(iii) give oral testimony concerning documentary
material or information; or
(iv) furnish any combination of materials, answers
or testimony.
(2) If a civil investigative demand is an express demand
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for a product of discovery, the Attorney General or a
designee shall:
(i) cause to be served in any manner authorized by
this subsection a copy of the demand upon the person from
whom or which the discovery was obtained; and
(ii) notify the demand issuee of the date on which
the copy was served.
(b) Contents and deadlines.--
(1) A civil investigative demand shall state the nature
of the conduct constituting the alleged violation of this
article that is under investigation and the applicable
provisions of this article alleged to be violated.
(2) If the civil investigative demand is for the
production of documentary material, the demand shall:
(i) describe each class of documentary material to
be produced with definiteness and certainty as to permit
the material to be fairly identified;
(ii) prescribe a return date for each class that
will provide a reasonable time period within which the
material so demanded may be assembled and made available
for inspection and copying; and
(iii) identify the false claims investigator to whom
the material shall be available.
(3) If the civil investigative demand is for answers to
written interrogatories, the demand shall:
(i) set forth with specificity the written
interrogatories to be answered;
(ii) prescribe dates on which the answers to the
written interrogatories shall be submitted; and
(iii) identify the false claims investigator to whom
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the answers shall be submitted.
(4) If the civil investigative demand is for oral
testimony, the demand shall:
(i) prescribe a date, time and place at which the
oral testimony shall be given;
(ii) identify a false claims investigator who shall
conduct the examination and the custodian to whom the
transcript of the examination shall be submitted;
(iii) specify that attendance and testimony are
necessary to the conduct of the false claims
investigation; and
(iv) describe the general purpose for which the
demand is being issued and general nature of the
testimony, including the primary areas of inquiry, that
will be taken under the demand.
(5) A civil investigative demand shall contain the
following statement printed at the beginning of the demand:
"You have the right to seek the assistance of an
attorney, who may represent you in all phases of the
investigation of which this civil investigative
demand is a part."
(6) A civil investigative demand that is an express
demand for a product of discovery shall not be returned or
returnable until 20 days after a copy of the demand has been
served upon the person from whom or which the discovery was
obtained.
(7) The date prescribed for commencement of oral
testimony under a civil investigative demand shall not be
less than seven days after the date on which the demand is
served, unless the Attorney General or a designee determines
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that exceptional circumstances exist and warrant commencing
testimony within a lesser time period.
(8) The Attorney General or a designee may not authorize
the issuance of more than one civil investigative demand for
the same person's oral testimony unless:
(i) the person requests otherwise; or
(ii) the Attorney General or a designee notifies the
person in writing that an additional demand for oral
testimony is necessary.
(c) Protected material or information.--
(1) A civil investigative demand may not require the
production of documentary material, the submission of answers
to written interrogatories or the giving of oral testimony if
the material, answers or testimony would be protected from
disclosure under the standards applicable to:
(i) subpoenas or subpoenas duces tecum issued by a
court of this Commonwealth to aid in a grand jury
investigation; or
(ii) discovery under the Pennsylvania Rules of Civil
Procedure or other applicable court rule, to the extent
that the application of the standards to a demand is
appropriate and consistent with the provisions and
purposes of this section.
(2) The following shall apply:
(i) Except where a statute explicitly precludes the
superseding effect imposed by this paragraph, a civil
investigative demand that is an express demand for a
product of discovery supersedes an inconsistent order,
rule or provision of law, other than in this section,
that prevents or restrains disclosure of the product of
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discovery to any person.
(ii) A person's disclosure of a product of discovery
under an express demand does not constitute a waiver of
any right or privilege to resist discovery of trial
preparation materials that the person may be entitled to
invoke.
(d) Service and jurisdiction.--Except as otherwise provided,
the following applies to civil investigative demands issued
under this section and petitions filed under subsection (j):
(1) A civil investigative demand may be served by a
false claims investigator, a law enforcement officer or
another individual authorized by law to serve process in the
jurisdiction where the demand is served. A petition may be
served by any person authorized to serve process under the
Pennsylvania Rules of Civil Procedure or other applicable
court rule.
(2) A civil investigative demand or petition may be
served upon a person consistent with and in the manner
prescribed by 42 Pa.C.S. Ch. 53 (relating to bases of
jurisdiction and interstate and international procedure) and
the Pennsylvania Rules of Civil Procedure or other applicable
court rule, for personal service inside or outside this
Commonwealth. To the extent that the courts of the
Commonwealth can assert jurisdiction over a person outside
this Commonwealth, a court with jurisdiction over an action
filed under this article shall have the same jurisdiction to
take action respecting the person's compliance with this
section that it would have if the person resided within the
court's jurisdiction.
(3) The following shall apply:
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(i) A civil investigative demand or petition may be
served upon a legal entity by:
(A) delivering an executed copy of the demand or
petition to a partner, executive officer, managing
agent or general agent of the legal entity, or to an
employee designated or agent authorized by
appointment or law to receive service of process on
behalf of the legal entity;
(B) delivering an executed copy of the demand or
petition to the legal entity's principal office or
place of business;
(C) depositing an executed copy of the demand or
petition in the United States mail by registered or
certified mail with a return receipt requested,
addressed to the legal entity at its principal office
or place of business; or
(D) any other method provided by the
Pennsylvania Rules of Civil Procedure or other
applicable court rule.
(ii) A civil investigative demand or petition may be
served upon a natural person by:
(A) delivering an executed copy of the demand or
petition to the person;
(B) depositing an executed copy of the demand or
petition in the United States mail by registered or
certified mail with a return receipt requested,
addressed to the person at the person's residence or
principal office or place of business; or
(C) any other method provided by the
Pennsylvania Rules of Civil Procedure or other
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applicable court rule.
(4) A verified return by the individual serving a civil
investigative demand or a petition, setting forth the manner
of service, shall be proof of service. In the case of service
by registered or certified mail, the return post office
receipt of the demand or petition's delivery shall accompany
the verified return.
(e) Documentary material.--
(1) The following shall apply regarding a verified
certificate:
(i) The production of documentary material shall be
made under a written and verified certificate, in the
form a civil investigative demand designates, by the
following individuals:
(A) if the demand issuee is a natural person, by
the demand issuee; and
(B) if the demand issuee is not a natural
person, by an individual who has knowledge of facts
and circumstances relating to the production and is
authorized to act on the demand issuee's behalf.
(ii) The certificate shall state that all the
documentary material required by the demand and in the
demand issuee's possession, custody or control has been
produced and made available to the false claims
investigator identified in the demand.
(2) The following shall apply to production:
(i) A demand issuee shall make demanded material
available for inspection and copying to the false claims
investigator identified in the demand:
(A) at the demand issuee's principal place of
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business;
(B) at another place as the false claims
investigator and the demand issuee thereafter may
agree and prescribe in writing; or
(C) as the court may direct under this section.
(ii) The documentary material shall be made
available on the return date specified in the demand or
on a later date as the false claims investigator may
prescribe in writing. The demand issuee may, upon written
agreement with the false claims investigator, substitute
copies for originals of all or any part of the material.
(3) If the demand issuee objects to the production of
any portion of the required documentary material or otherwise
withholds any portion of the material, the demand issuee
shall with particularity state the reasons for the objection
or withholding and identify all withheld material.
(f) Interrogatories.--
(1) Each interrogatory in a civil investigative demand
shall be answered separately and fully in writing under oath
and shall be submitted under a verified certificate, in the
form the demand designates, stating that all information
required by the demand and in the demand issuee's possession,
custody, control or knowledge has been submitted by the
following persons:
(i) if the demand issuee is a natural person, by the
demand issuee; and
(ii) if the demand issuee is not a natural person,
by the individuals responsible for answering each
interrogatory.
(2) If the demand issuee objects to an interrogatory or
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any portion thereof, or otherwise withholds information, the
demand issuee shall state with particularity the reasons for
the objection or withholding and identify all withheld
information.
(g) Oral examinations.--
(1) The following shall apply:
(i) The examination of a person under a civil
investigative demand for oral testimony shall be taken
before an officer authorized to administer oaths and
affirmations by the laws of this Commonwealth or of the
place where the examination is held.
(ii) The officer shall put the witness on oath or
affirmation and, personally or by someone acting under
the officer's direction and in the officer's presence,
shall record the witness's testimony.
(iii) The testimony shall be stenographically
transcribed.
(iv) When the transcribing is complete, the officer
shall promptly transmit a copy of the transcript to the
custodian.
(v) This subsection shall not preclude the taking of
testimony by any means authorized by, and in a manner
consistent with, the Pennsylvania Rules of Civil
Procedure or other applicable court rule.
(2) The false claims investigator conducting the
examination shall exclude from the place where the
examination is held all persons except the following:
(i) the person giving the testimony;
(ii) the attorney for the person giving the
testimony;
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(iii) an attorney for the Commonwealth;
(iv) the officer before whom the testimony is to be
taken;
(v) the court reporter taking the testimony;
(vi) the custodian, if identified in the demand as
attending; and
(vii) any other person upon which the person giving
the testimony and the attorney for the Commonwealth
agree.
(3) A person's oral testimony taken under a civil
investigative demand shall be taken in the county or city
within which the person resides, is found, or transacts
business, or in a place to which the false claims
investigator and the person otherwise agree.
(4) The following shall apply:
(i) When the transcript of testimony is completed,
the false claims investigator or the officer before whom
the testimony is taken shall afford the witness, who may
be accompanied by counsel, a reasonable opportunity to
examine and read the transcript, unless the witness
waives the reading and examination.
(ii) The officer or false claims investigator shall
enter and identify on the transcript any changes in form
or substance that the witness desires to make with a
statement of the reasons the witness gives for making the
changes.
(iii) The witness shall sign the transcript after
the changes, if any, are made, unless the witness waives
the signing in writing, is ill, cannot be found or
refuses to sign. If the witness does not sign the
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transcript within 30 days after being afforded a
reasonable opportunity to sign it, the officer or false
claims investigator shall sign it and state on the record
the fact of the witness's waiver, illness, absence or
refusal to sign, together with the reasons, if any, given
for why the witness did not sign the transcript.
(iv) The officer before whom the testimony is taken
shall certify on the transcript that the witness was
sworn by the officer and the transcript is a true record
of the witness's testimony, and the officer shall
promptly deliver the transcript or send the transcript by
registered or certified mail to the custodian.
(v) Upon receiving payment of reasonable charges,
the false claims investigator shall furnish a copy of the
transcript to the witness only, except that the Attorney
General or a designee may, for good cause, limit the
witnesses to inspecting the official transcript.
(5) The following shall apply:
(i) A person compelled to appear for oral testimony
may be accompanied, represented and advised by counsel.
Counsel may advise the person in confidence with respect
to any question asked of the person.
(ii) The person or the person's counsel may object
on the record to any question, in whole or in part, and
shall briefly state for the record the reason for the
objection. An objection may be made, received and entered
upon the record when it is asserted that the person is
entitled to refuse to answer on the grounds of a
constitutional or legal right or privilege, including the
privilege against self-incrimination. The person may not
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otherwise object to or refuse to answer any question and
may not directly or through counsel otherwise interrupt
the oral examination. If the person refuses to answer a
question, a petition may be filed with the court under
this section for an order compelling the person to answer
the question.
(6) A person appearing for oral testimony under a civil
investigative demand shall be entitled to the same fees and
allowances that are paid to witnesses in the Courts of Common
Pleas.
(h) Refusal to comply on self-incrimination privilege
grounds.--The Attorney General may invoke the provisions of 42
Pa.C.S. § 5947 (relating to immunity of witnesses) if a person,
on the grounds of privilege against self-incrimination, refuses
to do one or more of the following:
(1) Furnish documentary material in response to a civil
investigative demand.
(2) Answer an interrogatory in response to a civil
investigative demand.
(3) Answer a question asked during oral examination made
under a civil investigative demand.
(4) Otherwise comply with a civil investigative demand.
(i) Custody of documents, answers and transcripts.--
(1) Unless the Attorney General designates another
person, the false claims investigator identified on a civil
investigative demand shall serve as custodian of documentary
material, interrogatory answers and oral testimony
transcripts received under this section. The Attorney General
may designate additional persons as the Attorney General
determines to be necessary to serve as deputy, alternative or
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successor custodians.
(2) A false claims investigator who receives documentary
material, interrogatory answers or oral testimony transcripts
under this section shall:
(i) if serving as custodian, take possession of the
material, answers or transcripts and be responsible for
their usage and for the return of documentary material;
or
(ii) if not serving as custodian, transmit the
materials, answers or transcripts to the custodian, who
shall take possession and responsibility for the
materials, answers or transcripts.
(3) The custodian may cause the preparation of copies of
documentary material, interrogatory answers or oral testimony
transcripts as may be required for official use by a false
claims investigator or another officer or employee of the
Office of Attorney General authorized to use the materials,
answers or transcripts in connection with the taking of oral
testimony under this section.
(4) Under reasonable terms and conditions as the
Attorney General prescribes, a custodian possessing
documentary material, interrogatory answers or oral testimony
transcripts shall make the material, answers and transcripts
available for examination by the person that produced them or
by the person's representative.
(5) The following shall apply:
(i) Notwithstanding 18 Pa.C.S. Ch. 91 (relating to
criminal history record information), a designee who is
designated or called to appear before a court, grand jury
or Commonwealth agency in a case or proceeding may, in
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connection with the case or proceeding, obtain from the
custodian and use any documentary material, interrogatory
answers or oral testimony transcripts that the designee
determines is required.
(ii) Upon the case or proceeding's completion, an
attorney under subparagraph (i) shall return to the
custodian documentary material, interrogatory answers or
oral testimony transcripts that have not passed into the
court's, grand jury's or agency's control through
introduction into the case or proceeding's record.
(6) The following shall apply:
(i) Subject to subparagraphs (ii) and (iii), upon
the written request of a person that produced documentary
material in connection with a false claims investigation,
the custodian shall return the material.
(ii) The custodian shall return the material only
if:
(A) all cases or proceedings arising out of the
false claims investigation have been completed; or
(B) no case or proceeding in which the material
may be used has been commenced within a reasonable
time after completion of the examination and analysis
of all documentary material and other information
assembled in the course of the false claims
investigation.
(iii) The custodian shall not be required to return
either of the following:
(A) material that has passed into a court, grand
jury or Commonwealth agency's control through
introduction into a case or proceeding's record; and
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(B) copies furnished to the false claims
investigator or made in accordance with this
subsection for the Attorney General or a designee.
(j) Judicial proceedings.--
(1) The Commonwealth may file and serve upon a person a
petition for a court order enforcing a civil investigative
demand if:
(i) the person fails to comply with a demand served
upon the person; or
(ii) satisfactory copying or reproduction of the
material requested in the demand cannot be done and the
person refuses to surrender the material.
(2) The following shall apply:
(i) A demand issuee who has received a civil
investigative demand may file and serve upon the false
claims investigator identified in the demand a petition
for a court order modifying or setting aside the demand.
(ii) If a demand is an express demand for a product
of discovery, the person from whom discovery was obtained
may, upon receipt of the demand, file and serve upon the
false claims investigator identified in the demand a
petition for a court order modifying or setting aside
those portions of the demand requiring production of the
product of discovery.
(iii) A petition under this paragraph must be filed
within:
(A) the earlier of 20 days after the civil
investigative demand is served on the person or any
time before the return date specified in the demand;
or
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(B) a longer period if the false claims
investigator so prescribes in writing in the demand.
(iv) A petition under this paragraph shall specify
each ground the petitioner relies on in seeking relief
and may be based on either of the following:
(A) failure of the civil investigative demand,
or any portion thereof, to comply with this section's
provisions; or
(B) a constitutional or other legal right or
privilege of the petitioner.
(v) During the pendency of a petition under this
paragraph, the following shall apply:
(A) The court may stay, as it deems proper,
compliance with all or part of the demand and the
running of time allowed for compliance therewith.
(B) The petitioner must comply with any portion
of the demand that is not sought to be modified or
set aside, or otherwise subject to a stay issued by
the court.
(3) At any time a custodian possesses or is in custody
or control of documentary material, interrogatory answers or
transcripts of oral testimony given under a civil
investigative demand, the following persons may file and
serve upon the custodian a petition for a court order
requiring the custodian to perform a duty imposed on the
custodian by this section:
(i) the demand issuee that furnished the material,
answers or testimony; and
(ii) in the case of an express demand for a product
of discovery, the person from whom discovery was
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obtained.
(4) The following shall apply:
(i) The court shall have jurisdiction to hear and
determine a petition filed under this section and, after
a hearing at which all parties have the opportunity to be
heard, to enter orders as may be required to carry out
the provisions of this section.
(ii) A final order entered by Commonwealth Court
under this section shall be subject to appeal to the
Supreme Court under 42 Pa.C.S. § 723(a) (relating to
appeals from Commonwealth Court).
(k) Exemption from disclosure.--The Office of Attorney
General shall be exempt from disclosing under the act of
February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law,
documentary material, interrogatory answers and oral testimony
provided under a civil investigative demand.
(l) Construction.--Nothing in this section shall be
construed to limit the regulatory or investigative authority of
a department or agency of the Commonwealth whose functions may
relate to persons, enterprises or matters falling within the
scope of this article.
(m) Definitions.--For purposes of this section, the
following words and phrases shall have the meanings given to
them in this subsection unless the context clearly indicates
otherwise:
"Custodian." The false claims investigator or other
custodian or a deputy or alternate custodian designated under
subsection (i) by the Attorney General.
"Demand issuee." A person to whom or which a civil
investigative demand is issued or directed.
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"Designee." An attorney of the Office of Attorney General
designated by the Attorney General to perform duties vested in
the Attorney General under this section.
"Documentary material." Includes the original or a copy of a
book, record, report, memorandum, paper, communication,
tabulation, chart or other document or data compilations stored
or accessible through computer or other information retrieval
systems, together with appropriate and succinct instructions and
all other materials necessary to use or interpret the data
compilations, and a product of discovery.
"False claims investigation." An inquiry conducted by a
false claims investigator for the purposes of ascertaining
whether a person is or has been engaged in a violation of this
article.
"False claims investigator." An individual charged with the
duty of enforcing or carrying out the provisions of this article
who is either of the following:
(1) An attorney or investigator employed by the Office
of Attorney General.
(2) An officer or employee of the Commonwealth acting
under the attorney or investigator's direction and
supervision in connection with a false claims investigation.
"Legal entity." A person other than a natural person.
"Person." As defined in 1 Pa.C.S. § 1991 (relating to
definitions).
"Product of discovery." The term includes:
(1) The original or duplicate of a deposition,
interrogatory, document, thing, result of the inspection of
land or other property, examination or admission that is
obtained by any method of discovery in a judicial or
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administrative proceeding of an adversarial nature.
(2) A digest, analysis, selection, compilation or
derivation of an item listed in paragraph (1).
(3) An index or other manner of access to an item listed
in paragraph (1).
"Verified." Supported by oath or affirmation and averred
subject to the penalties of 18 Pa.C.S. § 4904 (relating to
unsworn falsification to authorities).
Section 1414-E. Access and sharing of information.
(a) Criminal information.--
(1) Subject to paragraph (2) and as necessary for
official use, the provisions of 18 Pa.C.S. Ch. 91 (relating
to criminal history record information) shall not impair the
Office of Attorney General's ability to access and to share
data, records, documents or other information obtained during
the course of a criminal investigation or prosecution with
the following:
(i) A section, unit, subunit or individual employee
or agent of the Office of Attorney General authorized by
the Attorney General to enforce this article.
(ii) Officials of the United States, other States,
the Commonwealth, or a political subdivision thereof
charged the responsibility for enforcing Federal, State
or local laws respecting fraud or false claims upon
Federal, State or local governments.
(iii) A qui tam plaintiff.
(2) A recipient under paragraph (1) who is subject to
the jurisdiction of this Commonwealth shall be subject to the
provisions of 18 Pa.C.S. Ch. 91, dissemination and sharing of
the information with noncriminal justice agencies,
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departments and individuals, except as permitted under
paragraph (1).
(b) Civil investigative information.--
(1) Except as otherwise provided in this section or
section 1413-E or as necessary for official use, documentary
material, interrogatory answers and oral testimony
transcripts or copies of the foregoing shall not be accessed
by, shared with or made available for examination by an
individual other than a false claims investigator or other
officer or employee of the Office of Attorney General.
(2) The prohibition in paragraph (1) shall not apply if
the person that produced the material, answers or
transcripts, or, in the case of a product of discovery
produced under an express demand for the material, the person
from whom or which the discovery was obtained, consents.
(3) Nothing in this subsection shall be construed to
prevent disclosure to the General Assembly, or a committee or
subcommittee thereof, or to a Commonwealth agency for the
agency's use in furtherance of its statutory or
constitutional responsibilities, except that disclosure shall
be subject to 18 Pa.C.S. Ch. 91.
(4) The Attorney General or a designee may share
information obtained under section 1413-E with a qui tam
plaintiff, if the Attorney General or designee determines
that it is necessary as part of a false claims investigation
or action conducted under this article.
Section 1415-E. Distribution and deposit of Commonwealth's
share of proceeds.
(a) Distribution and deposit.--The Commonwealth's share of
the proceeds of an action or settlement under this article, not
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including the enforcement costs and less any amount legally
required to be paid from the Commonwealth's share, shall be
distributed and deposited as follows:
(1) An amount equal to 20% of the total enforcement
costs shall be distributed from the Commonwealth's share to
the Office of Attorney General.
(2) After distribution under paragraph (1):
(i) each portion of the Commonwealth's share
attributable to a claim paid from or related to a
Commonwealth fund or account other than the General Fund
shall be deposited into the other fund or account; and
(ii) each portion of the Commonwealth's share
attributable to a claim paid from or related to the
General Fund shall be deposited in the Fraud Prevention
and Recovery Account.
(b) Pro rata basis.--The amount deposited in each affected
fund or account under subsection (a)(2) shall be proportionate
to the fund or account's percentage of the total damages
sustained due to the violation of section 1411-E underlying the
action or settlement.
(c) Use by Commonwealth agencies.--A Commonwealth agency to
which money under subsection (a)(2) is distributed for deposit
in a fund or account shall use the money to reimburse the
agency-administered programs whose funds or accounts were
diminished as a result of the violation.
(d) Definition.--As used in this section, the term
"enforcement costs" means the costs awarded under section 1411-
E(c) to the Office of Attorney General.
Section 1416-E. Fraud Prevention and Recovery Account.
The Fraud Prevention and Recovery Account is established as a
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restricted account within the General Fund. Money in the Fraud
Prevention and Recovery Account may only be used as appropriated
by the General Assembly.
Section 1417-E. Annual report.
(a) Report required.--Within two years after the effective
date of this subsection, and thereafter annually by December 31
of each year, the Attorney General shall prepare a report
concerning actions taken under this article. The report shall be
submitted to the following:
(1) The Governor.
(2) The chairperson and minority chairperson of the
Judiciary Committee of the Senate.
(3) The chairperson and minority chairperson of the
Judiciary Committee of the House of Representatives.
(4) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(5) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(b) Contents.--The report shall include the following:
(1) The number of actions filed under this article by
the Attorney General.
(2) The number of actions filed under this article by
the Attorney General that were completed.
(3) The amount that was recovered in actions filed under
this article by the Attorney General through settlement or
through a judgment and, if known, the amount recovered for
damages, penalties and litigation costs.
(4) The number of actions filed under section 1412-E by
a qui tam plaintiff.
(5) The number of actions filed under section 1412-E by
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a qui tam plaintiff that were completed.
(6) The amounts that were recovered in actions filed
under section 1412-E by a qui tam plaintiff through
settlement or through a judgment and, if known, the amounts
recovered for damages, penalties and litigation costs and the
amounts recovered by the Commonwealth and the qui tam
plaintiff.
(7) The amount expended by the Commonwealth for
investigation, litigation and all other costs for legal
claims under this article.
(8) A narrative describing the most notable or prevalent
violations of section 1411-E and recommendations on how
Commonwealth agencies may prevent similar violations from
occurring.
(9) Legislative recommendations that the Attorney
General may have for amendments to this article and any other
law as it relates to this article.
Section 1418-E. Statute of limitations, burden of proof and
estoppel.
(a) Statute of limitations.--
(1) Subject to paragraph (2), a civil action under
section 1412-E may not be brought more than 10 years after
the date on which the violation was committed.
(2) If a violation is part of a continuing course of
conduct, a civil action under section 1412-E may not be
brought more than 10 years after the date on which the last
violation in the continuing course of conduct was committed.
(3) If the Commonwealth elects to intervene and proceed
with an action brought under section 1412-E(b):
(i) The Commonwealth may file its own complaint or
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amend the qui tam plaintiff's complaint in order to
clarify or add detail to the legal claims and to add any
additional legal claims with respect to which the
Commonwealth contends it is entitled to relief.
(ii) The Commonwealth's pleading shall relate back
to the filing date of the qui tam plaintiff's complaint
to the extent that the Commonwealth's legal claims arise
out of the conduct, transactions or occurrences set
forth, or attempted to be set forth, in the qui tam
plaintiff's complaint.
(b) Burden of proof.--In an action brought under section
1412-E, the Commonwealth or the qui tam plaintiff shall be
required to prove all essential elements of the cause of action,
including damages, by a preponderance of the evidence.
(c) Estoppel.--Notwithstanding any other provision of law, a
final judgment rendered in the Commonwealth's favor in a
criminal proceeding charging false statements or fraud, whether
upon a verdict after trial or upon a plea of guilty or nolo
contendere, shall estop the defendant from denying the essential
elements of the offense in an action brought under section 1412-
E that involves the same transaction as in the criminal
proceeding.
Section 1419-E. Certain rules, policies and agreements
prohibited.
(a) Prohibition.--An employer may not engage in either of
the following:
(1) Making, adopting or enforcing a rule, regulation or
policy preventing an employee, contractor or agent from
disclosing information to a government agency or law
enforcement agency related to, or from acting to stop, a
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violation of section 1411-E.
(2) Requiring as a condition of employment, during the
term of employment or at or upon the termination of
employment, that an employee, contractor or agent agree to,
accept or execute an agreement that limits or denies the
employee, contractor or agent's ability to:
(i) disclose to a government agency or law
enforcement agency information related to an alleged or
actual violation of section 1411-E; or
(ii) bring an action under section 1412-E(b) or
1420-E.
(b) Rules, policies or agreements void.--A rule, regulation,
policy or agreement that violates subsection (a) is void to the
extent of the violation.
(c) Construction.--Subsection (a)(2)(ii) shall not be
construed to prohibit, as a term of good-faith settlement of a
disputed legal claim, the release and discharge of an employee,
contractor or agent's legal claim under section 1420-E.
Section 1420-E. Relief from retaliation.
(a) Relief.--An employee, contractor or agent shall be
entitled to all relief necessary to make the employee,
contractor or agent whole, if the employee, contractor or agent
is discharged, demoted, suspended, threatened, harassed or in
any other manner discriminated against in the terms and
conditions of employment, contract or agency because of lawful
acts done by the employee, contractor, agent or associated
others in furtherance of an action under this article or other
efforts to stop a violation of this article.
(b) Reinstatement.--Relief under subsection (a) shall
include reinstatement with the same seniority status that the
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employee, contractor or agent would have had but for the
discrimination, two times the amount of back pay, interest on
the back pay and compensation for special damages sustained as a
result of the discrimination, including litigation costs, and
reasonable attorney fees.
(c) Burden of proof.--In an action under this section, a
plaintiff shall be required to prove all essential elements of
the cause of action, including damages, by a preponderance of
the evidence.
(d) Limitation.--An action under this section may not be
brought more than three years after the date on which the
employee, contractor or agent learns the retaliation occurred.
Section 1421-E. Actions and remedies under other laws.
(a) Actions and remedies not exclusive.--The provisions of
this article are not exclusive and the actions and remedies
provided for in this article shall be in addition to any other
actions and remedies provided for in any other law or available
under the common law.
(b) Construction.--The availability of an action or remedy
provided for in any other law or available under the common law
shall not be construed to exclude, impair or limit the
availability or use of the provisions of this article.
(c) Existing privileges and immunities unaffected.--This
article shall not abrogate nor modify any existing statutory or
common law privilege or immunity.
Section 1422-E. Qualification of article for increased share of
recoveries.
(a) Submission.--Within 30 days after the effective date of
this subsection, the Attorney General shall submit a copy of
this article and any other relevant information to the Office of
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Inspector General, United States Department of Health and Human
Services and request a determination that this article meets the
requirements of section 1909(b) of the Social Security Act of
1935 (49 Stat. 620, 42 U.S.C. § 1396h(b)), in order to qualify
the Commonwealth for an increased share of amounts recovered
under this article with respect to false or fraudulent claims
submitted to the medical assistance program.
(b) Review and recommendations.--If the Office of Inspector
General, United States Department of Health and Human Services
determines that this article does not meet the requirements of
section 1909(b) of the Social Security Act of 1935, the Attorney
General shall prepare and transmit to the officials designated
in section 1417-E(a) a report explaining the reasons for the
denial and suggested revisions to this article that would cause
this article to meet the requirements of section 1909(b) of the
Social Security Act of 1935.
Section 1423-E. Rules of procedure.
Except as otherwise specified in, or where clearly
inconsistent with, this article, original proceedings under this
article shall be governed by the Pennsylvania Rules of Civil
Procedure or other applicable court rule.
Section 1424-E. Trial by jury.
A party to an action under this article shall be entitled to
trial by jury.
Section 1425-E. Implementation.
(a) Regulations.--The Attorney General is empowered and
authorized to promulgate regulations as necessary to carry out
the purposes of this article.
(b) Temporary regulations.--
(1) The following shall apply:
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(i) In order to facilitate the speedy implementation
of this article, the Attorney General is authorized to
adopt temporary regulations within three years after the
effective date of this section. A temporary regulation
promulgated under this section shall not be subject to
any of the following:
(A) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code
of 1929.
(B) Sections 201, 202, 203, 204 and 205 of the
act of July 31, 1968 (P.L.769, No.240), referred to
as the Commonwealth Documents Law.
(C) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(D) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(ii) The Attorney General is authorized to adopt
necessary amendments to a temporary regulation at any
time before the temporary regulation's expiration.
(iii) The Attorney General shall transmit temporary
regulations and amendments thereto to the Legislative
Reference Bureau for publication in the next available
issue of the Pennsylvania Bulletin.
(iv) A temporary regulation or amendment thereto
shall take effect upon its publication in the
Pennsylvania Bulletin.
(v) Except as otherwise provided in paragraph (2),
temporary regulations and amendments thereto shall expire
the earlier of three years after the publication in the
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Pennsylvania Bulletin, or a date the Attorney General
designates.
(2) At any time before a temporary regulation expires
under paragraph (1)(v), the Attorney General may promulgate a
final version of the temporary regulation, in which case the
temporary regulation shall expire when the final version
takes effect, is finally disapproved or is withdrawn by the
Attorney General.
(c) Construction.--This section is not intended to impair
the Attorney General's discretion to adopt policies as necessary
to implement the provisions of this article.
Section 1426-E. Jurisdiction and Attorney General as relator in
Federal false claims actions.
(a) Jurisdiction.--An action or petition under this article
shall be filed in a court of competent jurisdiction. The
following shall apply:
(1) Commonwealth Court shall have original jurisdiction
of an action under section 1412-E or petition under section
1413-E. The courts of common pleas shall have original
jurisdiction of an action under section 1420-E.
(2) A court exercising jurisdiction of an action under
this article shall have ancillary jurisdiction over legal
claims asserted under the laws of the United States, a State
or a local government that arise from the same transaction or
occurrence as the action.
(b) Attorney General as relator.--To the extent permitted by
Federal law, the Attorney General may bring an action as a
relator under 31 U.S.C. § 3730 (relating to civil actions for
false claims) with respect to any act for which a person may be
held liable under 31 U.S.C. Ch. 37 (relating to claims).
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(c) Service on other authorities.--With respect to the
Federal Government or a State or local government that is named
as a co-plaintiff with the Commonwealth in an action brought
under this article, the following shall apply to a seal on the
action ordered by the court under section 1412-E(b):
(1) The seal shall not preclude the Commonwealth or the
qui tam plaintiff from:
(i) Serving the complaint or other pleadings or
filings upon officials who are charged with the
responsibility for enforcing the law of that Federal,
State or local government respecting fraud or false
claims upon Federal, State or local governments.
(ii) Disclosing to the officials under subparagraph
(i) substantially all material evidence and information
that the Commonwealth or the qui tam plaintiff possesses.
(2) The seal shall apply to the officials under
paragraph (1) served to the same extent as the seal applies
to other parties in the action.
Section 2. This act shall take effect in 120 days.
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