2023-2024 Regular Session HB 1437 PN 1622 Bill Text (HTM)

PRINTER'S NO. 1622

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1437

Session of

2023

INTRODUCED BY GROVE, GREINER, STAMBAUGH, STAATS, KEEFER, JAMES,

FLICK, MOUL, ROWE, GLEIM, LEADBETER, SCIALABBA AND STRUZZI,

JUNE 20, 2023

REFERRED TO COMMITTEE ON JUDICIARY, JUNE 20, 2023

AN ACT

Amending Title 71 (State Government) of the Pennsylvania

Consolidated Statutes, 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. Title 71 of the Pennsylvania Consolidated

Statutes is amended by adding a part to read:

PART XXVII

FINANCES OF STATE GOVERNMENT

Chapter

61. (Reserved)

63. False Claims Against Commonwealth

CHAPTER 61

(Reserved)

CHAPTER 63

FALSE CLAIMS AGAINST COMMONWEALTH

Subchapter

A. Preliminary Provisions

B. False Claims

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

6301. Short title of chapter.

6302. Declaration of policy.

6303. Definitions.

§ 6301. Short title of chapter.

This chapter shall be known and may be cited as the

Commonwealth Fraud Prevention Act.

§ 6302. Declaration of policy.

The General Assembly declares that this chapter adopts the

intent of the United States Congress in enacting the Federal

False Claims Act (Public Law 97-258, 31 U.S.C. § 3729 et seq.).

§ 6303. Definitions.

The following words and phrases when used in this chapter

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 will be spent or

used on the Commonwealth's behalf or to advance a program

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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

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.

"Designated district attorney." A district attorney

designated by the Attorney General under section 6312(a)(2)

(relating to Attorney General investigations and prosecutions

and civil actions).

"Designee." Any of the following individuals designated by

the Attorney General to perform duties under this chapter:

(1) An attorney of the Office of Attorney General.

(2) A designated district attorney.

(3) An attorney from a designated district attorney's

office.

"Knowing" or "knowingly." As follows:

(1) When 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

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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.

"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 of the Office of Attorney General or designated

district attorney.

(2) Communications between the Office of Attorney

General or designated district attorney 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.

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(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 investigators, auditors,

consultants and experts, the counsel of other parties,

arbitrators and mediators, concerning an investigation,

action, case or proceeding.

"Original source." A qui tam plaintiff who:

(1) prior to a public disclosure under section 6312(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 6312(b).

" Person. " A natural person, corporation, firm, association,

organization, partnership, limited liability company, business,

trust, business trust, estate or foundation.

"Qui tam plaintiff." A person bringing a civil action under

section 6312(b).

"State." In reference to a jurisdiction, the term includes

the District of Columbia, the Commonwealth of Puerto Rico, the

Virgin Islands and all other insular territories of the United

States.

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SUBCHAPTER B

FALSE CLAIMS

Sec.

6311. Acts subjecting persons to liability and damages.

6312. Attorney General investigations and prosecutions and

civil actions.

6313. Civil investigative demands.

6314. Access to and sharing of information.

6315. Deposit of Commonwealth's share of proceeds.

6316. Annual report.

6317. Statute of limitations, burden of proof and estoppel.

6318. Certain rules, policies and agreements prohibited.

6319. Relief from retaliatory actions.

6320. Actions and remedies under other laws.

6321. Qualification of chapter for increased share of

recoveries.

6322. Rules of procedure.

6323. Trial by jury.

6324. Implementation.

6325. Jurisdiction and Attorney General as relator in false

claims act ions.

6326. Expiration.

§ 6311. Acts subjecting persons to liability and damages.

(a) Liability.--Except as provided in sub section (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 sub section (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.

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(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.

(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),

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(2), (3), (4), (5), (6), (7) or (8).

(b) Damages limitation.--Notwithstanding the damages

provision of sub section (a), the court may assess not less than

two times the amount of damages the Commonwealth sustains from a

violation of sub section (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.

(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.

or penalties under sub section (a) shall also be liable to the

Commonwealth for the reasonable costs of investigating and

prosecuting violations of sub section (a), including reasonable

costs to the Office of Attorney General and, if applicable, to a

designated district attorney under section 6312(a)(2) (relating

to Attorney General investigations and prosecutions and civil

actions) .

(d) Adjustment of penalties.--

(1) The upper and lower limits on civil penalties

imposed under subsection (b) shall be equal to, and shall

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adjust consistently with, the civil penalty limits imposed

under 31 U.S.C. § 3729(a)(1) (relating to false claims), as

the limits under that provision are periodically adjusted by

the Federal Civil Penalties Inflation Adjustment Act of 1990

(Public Law 101-410, 28 U.S.C. § 2461 note (relating to

recovery)).

(2) The Office of Attorney General shall transmit a

notice of any adjustment under this subsection to the

Legislative Reference Bureau for publication in the next

available issue of the Pennsylvania Bulletin.

(e) Exemption from disclosure.--The Office of Attorney

General and, if applicable, a designated district attorney's

office shall be exempt from disclosing information under the act

of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

Law, that is furnished under sub section (b) or accessed or

shared under section 6314(a) (relating to access to and sharing

of information).

§ 6312. Attorney General investigations and prosecutions and

civil actions.

(a) Responsibilities.--

(1) The Attorney General shall represent the

Commonwealth with respect to all matters arising under this

chapter and may investigate a violation of section 6311

(relating to a cts subjecting persons to liability and

damages). If the Attorney General finds that a person has

violated or is violating section 6311, the Attorney General

may bring a civil action under this section against that

person for violating section 6311.

(2) The Attorney General may enter into an agreement

with a district attorney to designate the district attorney

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to serve as the Attorney General's designee, investigate a

violation of section 6311 and bring a civil action under this

section against a person that has violated or is violating

section 6311. The Attorney General at any time may rescind

the designation made under this paragraph.

(3) Nothing in section 1407 of the act of June 13, 1967

(P.L.31, No.21), known as the Human Services Code, shall be

construed to limit the Attorney General's authority to

investigate or prosecute violations of section 6311.

(b) Action by qui tam plaintiff.--

(1) A qui tam plaintiff may bring a civil action for a

violation of section 6311 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 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

120 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 120 days after

the Commonwealth 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

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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 applicable court rule.

(4) Before the expiration of the 120-day period or any

extensions obtained under paragraph (3), the Commonwealth

shall do either of the following:

(i) Proceed with the action.

(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.

plaintiff brings an action under sub section (b), no person other

than the Commonwealth may intervene or bring a related action

based on the facts underlying the pending action.

(d) Rights of parties to qui tam actions.--

(1) If the Commonwealth proceeds with the action, the

Commonwealth 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 paragraphs (2), (3), (4) and (5).

(2) T he 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.

(3) The Commonwealth may settle the action with the

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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 the

circumstances. Upon a showing of good cause, the hearing may

be held in camera. Upon motion of the Commonwealth, the

court, for good cause shown, shall order a partial lifting of

the seal to facilitate the investigative process or

settlement.

(4) 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:

(i) limiting the number of witnesses the qui tam

plaintiff may call;

(ii) limiting the length of witness testimony;

(iii) limiting the qui tam plaintiff's cross-

examination of witnesses; or

(iv) otherwise limiting the qui tam plaintiff's

participation in the action.

(5) 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.

(6) 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

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shall be served with copies of all pleadings filed in the

action and shall be supplied, at the Commonwealth's expense,

with copies of all deposition transcripts and other discovery

produced in the action. 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.

(7) 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.

(8) Notwithstanding sub section (b), the Commonwealth may

elect to pursue its 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

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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.

(e) Award to qui tam plaintiff.--

(1) If the Commonwealth proceeds with an action brought

by a qui tam plaintiff, the qui tam plaintiff shall, subject

to the provisions of this sub section , 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.

(2) 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, audit or investigation or from the news

media, the court may award a sum it considers appropriate,

taking into account the information's significance and the

qui tam plaintiff's role in advancing the action, but in no

case more than 10% of the proceeds of the action or

settlement.

(3) 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.

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(4) Whether or not the Commonwealth proceeds with the

action, if the court finds that the qui tam plaintiff planned

and initiated the violation of section 6311 upon which the

action was brought, the following shall apply:

(i) Subject to subparagraph (ii), the court may, to

the extent it considers appropriate, reduce the share of

the proceeds of the action or settlement of the legal

claim which the qui tam plaintiff would otherwise receive

under paragraph (1), (2) or (3), 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.

(5) 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 which the court finds were necessarily

incurred, plus reasonable attorney fees and costs. The

expenses, fees and costs shall be awarded against the

defendant.

(6) 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

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frivolous, clearly vexatious or brought primarily for

purposes of harassment.

(f) Certain actions barred.--

(1) A court does not have jurisdiction over an action

filed under this section 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) Subject to paragraph (3), the court shall dismiss an

action or legal claim brought under sub section (b) if

substantially the same allegations or transactions alleged in

the action or legal claim were publicly disclosed in:

(i) the news media;

(ii) a criminal, civil or administrative hearing in

which the Commonwealth is or was a party; or

(iii) a Federal, State or local legislative or other

governmental hearing, report, audit or investigation.

(3) The court may not dismiss an action under paragraph

(2) if:

(i) the Attorney General or a designated district

attorney brought action;

(ii) the Commonwealth opposes dismissal; or

(iii) the qui tam plaintiff is an original source of

the information publicly disclosed.

(4) A qui tam plaintiff may not bring an action under

this section which 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

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already a party.

(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) (Reserved).

(i) Cooperation by agencies.--Commonwealth agencies shall

cooperate in the investigation and prosecution of false claims

under this section , whether the investigation is conducted or a

suit is brought by the Attorney General, a designated district

attorney or a qui tam plaintiff.

(j) 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.

§ 6313. Civil investigative demands.

(a) Issuance and service.--

(1) If the Attorney General or, for purposes of this

sub section , the Attorney General's designee, 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 chapter , the Attorney

General or designee may, before commencing a civil action

under section 6312(a) (relating to Attorney General

investigations and prosecutions and civil actions) or making

an election whether to intervene in an action brought under

section 6312(b), 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;

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(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

for a product of discovery, the Attorney General or designee

shall:

(i) Cause to be served in any manner authorized by

this sub section a copy of the demand upon the person from

whom or which the discovery was obtained.

(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

chapter that is under investigation and the applicable

provisions of this chapter 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.

(iii) Identify the false claims investigator to whom

the material shall be available.

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(3) If the civil investigative demand is for answers to

written interrogatories, the demand shall:

(i) Describe with specificity the written

interrogatories to be answered.

(ii) Prescribe dates on which the answers to the

written interrogatories shall be submitted.

(iii) Identify the false claims investigator to whom

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.

(iv) Describe the general purpose for which the

demand is being issued and general nature of the

testimony, including the primary areas of inquiry, which

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

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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 designee determines

that exceptional circumstances exist and warrant commencing

testimony within a lesser time period.

(8) The Attorney General, or 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 designee notifies the

person in writing that an additional demand for oral

testimony is necessary.

(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) Except if a statute explicitly precludes the

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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 discovery to any

person.

(3) 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 apply to civil investigative demands issued under

this section and petitions filed under sub section (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.

(2) A petition may be served by any person authorized to

serve process under the Pennsylvania Rules of Civil Procedure

or other applicable court rule.

(3) 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.

(4) To the extent that the courts of this Commonwealth

can assert jurisdiction over a person outside this

Commonwealth, a court with jurisdiction over an action filed

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under this chapter 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.

(5) A civil investigative demand or petition may be

served upon a legal entity by:

(i) 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;

(ii) delivering an executed copy of the demand or

petition to the legal entity's principal office or place

of business;

(iii) 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

(iv) any other method provided by the Pennsylvania

Rules of Civil Procedure or other applicable court rule.

(6) A civil investigative demand or petition may be

served upon a natural person by:

(i) delivering an executed copy of the demand or

petition to the person;

(ii) 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

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(iii) any other method provided by the Pennsylvania

Rules of Civil Procedure or other applicable court rule.

(7) A verified return by the individual serving a civil

investigative demand or a petition, specifying 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 production of documentary material shall be made

under a written and verified certificate, in the form a civil

investigative demand designates:

(i) if the demand issuee is a natural person, by the

demand issuee; or

(ii) 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.

(2) 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.

(3) A demand issuee shall make demanded material

available for inspection and copying to the false claims

investigator identified in the demand:

(i) at the demand issuee's principal place of

business;

(ii) at another place as the false claims

investigator and the demand issuee thereafter may agree

20230HB1437PN1622 - 23 -

and prescribe in writing; or

(iii) as the court may direct under this section .

(4) 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.

(5) 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:

(i) if the demand issuee is a natural person, by the

demand issuee; or

(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

any portion of an interrogatory, or otherwise withholds

information, the demand issuee shall state with particularity

the reasons for the objection or withholding and identify all

withheld information.

20230HB1437PN1622 - 24 -

(g) Oral examinations.--

(1) 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.

(2) 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.

(3) The testimony shall be stenographically transcribed.

(4) When the transcribing is complete, the officer shall

promptly transmit a copy of the transcript to the custodian.

(5) This sub section 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.

(6) 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.

(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.

(vii) Any other person upon which the person giving

20230HB1437PN1622 - 25 -

the testimony agreed and the attorney for the

Commonwealth.

(7) 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.

(8) 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.

(9) 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.

(10) 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 transcript within 30

days after being afforded a reasonable opportunity to sign

it, the officer or false claims investigator shall sign the

transcript 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.

(11) 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

20230HB1437PN1622 - 26 -

witness's testimony, and the officer shall promptly deliver

the transcript or send the transcript by registered or

certified mail to the custodian.

(12) 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 the Attorney General's designee may, for good

cause, limit the witnesses to inspecting the official

transcript.

(13) 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.

(14) 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 otherwise object to or

refuse to answer any question and may not directly or through

counsel otherwise interrupt the oral examination. If a 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.

(15) 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.

20230HB1437PN1622 - 27 -

(h) Refusal to comply on self-incrimination privilege

grounds.--The Attorney General or, with the Attorney General's

authorization, a designated district attorney 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:

(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; or

(4) otherwise comply with a civil investigative demand.

(i) Custody of documents, answers and transcripts.--

(1) Unless the Attorney General or, if applicable, a

designated district attorney 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 or, if applicable, a

designated district attorney may designate additional persons

as the Attorney General determines to be necessary to serve

as deputy, alternative or 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;

20230HB1437PN1622 - 28 -

( 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, or a designated district attorney

authorized by 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) Notwithstanding 18 Pa.C.S. Ch. 91, a designee who is

designated or called to appear before a court, grand jury or

Commonwealth agency in a case or proceeding may, in

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.

(6) Upon the case or proceeding's completion, an

attorney 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.

20230HB1437PN1622 - 29 -

(7) Subject to paragraphs (8) and (9), upon the written

request of a person that produced documentary material in

connection with a false claims investigation, the custodian

shall return the material.

(8) The custodian shall return the material only if:

(i) all cases or proceedings arising out of the

false claims investigation have been completed; or

(ii) 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.

(9) The custodian shall not be required to return either

of the following:

(i) material that has passed into a court, grand

jury or Commonwealth agency's control through

introduction into a case or proceeding's record; or

(ii) copies furnished to the false claims

investigator or made for the Attorney General, or

designee, under this sub section .

(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) A demand issuee who has received a civil

20230HB1437PN1622 - 30 -

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.

(3) 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.

(4) A petition under paragraph (2) must be filed within:

(i) 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

(ii) a longer period if the false claims

investigator so prescribes in writing in the demand.

(5) A petition under paragraph (2) shall specify each

ground the petitioner relies on in seeking relief and may be

based on either of the following:

(i) failure of the civil investigative demand, or

any portion thereof , to comply with this section 's

provisions; or

(ii) a constitutional or other legal right or

privilege of the petitioner.

(6) During the pendency of a petition under paragraph

(2), the following shall apply:

(i) The court may stay, as the court deems proper,

compliance with all or part of the demand and the running

of time allowed for compliance with the demand.

(ii) The petitioner must comply with any portion of

the demand that is not sought to be modified or set

20230HB1437PN1622 - 31 -

aside, or otherwise subject to a stay issued by the

court.

(7) 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; or

(ii) in the case of an express demand for a product

of discovery, the person from whom discovery was

obtained.

(8) 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 .

(9) 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 and, if applicable, a designated district attorney's

office, 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) Definitions.--For purposes of this section , the

20230HB1437PN1622 - 32 -

following words and phrases shall have the meanings given to

them in this sub section unless the context clearly indicates

otherwise:

"Custodian." The false claims investigator or other

custodian or a deputy or alternate custodian designated by the

Attorney General under sub section (i).

"Demand issuee." A person to whom or which a civil

investigative demand is issued or directed.

"Documentary material." Includes the original or a copy of a

book, record, report, memorandum, paper, communication,

tabulation, chart or other document or data compilation 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

chapter .

"False claims investigator." An individual charged with the

duty of enforcing or carrying out the provisions of this chapter

who is:

(1) an attorney or investigator employed by the Office

of Attorney General or, if applicable, by a designated

district attorney; or

(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

20230HB1437PN1622 - 33 -

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

administrative proceeding of an adversarial nature;

(2) a digest, analysis, selection, compilation or

derivation of an item listed in paragraph (1); and

(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).

§ 6314. Access to and sharing of information.

(a) Criminal information.--

(1) Subject to paragraph (2) and section 6324 (relating

to implementation), 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 ability of the

Attorney General to access and 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 chapter, including a

designated district attorney.

(ii) An official of the United States, other states,

the Commonwealth or a political subdivision thereof

charged with the responsibility for enforcing Federal,

20230HB1437PN1622 - 34 -

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 the Commonwealth shall be subject to the

provisions of 18 Pa.C.S. Ch. 91 relating to further

disclosure, dissemination and sharing of the information with

noncriminal justice agencies, departments and individuals,

except as permitted under paragraph (1).

(b) Civil investigative information.--

(1) Except as otherwise provided in this section or

section 6313 (relating to civil investigative demands), and

as necessary for official use, documentary material,

interrogatory answers and oral testimony transcripts or

copies of the foregoing may 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 or, if applicable, of a

designated district attorney.

(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 is 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.

20230HB1437PN1622 - 35 -

(4) Except as otherwise prohibited by law, the Attorney

General or, with the Attorney General's authorization, a

designee, may share information obtained under section 6311

(relating to acts subjecting persons to liability and

damages) with a qui tam plaintiff, if the Attorney General or

authorized designee determines it is necessary as part of a

false claims investigation or action conducted under this

article.

§ 6315. Deposit of Commonwealth's share of proceeds.

(a) Distribution and division.--The Commonwealth's share of

the proceeds of an action or settlement under this chapter, not

including the enforcement costs and less any amount legally

required to be paid from the Commonwealth's share, shall be

distributed in the following manner:

(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 and, if applicable, to a

designated district attorney, in proportions equal to each

office's percentage of the enforcement costs.

(2) After distribution under paragraph (1), the

remainder of the Commonwealth's share shall be distributed to

the Commonwealth agencies that sustained damages from the

violation of section 6311 in proportions equal to each

agency's percentage of the damages. A Commonwealth agency

that has distributed money under this paragraph shall use the

money to reimburse the agency-administered programs whose

funds were diminished because of the violation.

(b) Definition.--As used in this section, the term

"enforcement costs" means the costs awarded under section

6311(d) to the Attorney General and, if applicable, to a

20230HB1437PN1622 - 36 -

designated district attorney.

§ 6316. Annual report.

(a) Report required.--The Attorney General shall prepare an

annual report concerning actions taken under this chapter by

December 31 each year, beginning December 31, 2023. The report

shall be submitted to the following:

(1) The Governor.

(2) The Department of Auditor General.

(3) The Independent Fiscal Office.

(4) The Office of Inspector General.

(5) The members of the General Assembly.

(6) The Legislative Budget and Finance Committee.

(b) Contents.--The report shall include the following:

(1) The number of actions filed under this chapter by

the Attorney General.

(2) The number of actions filed under this chapter by

the Attorney General that were completed.

(3) The amount that was recovered in actions filed under

this chapter 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 6312

(relating to Attorney General investigations and prosecutions

and civil actions) by a person other than the Attorney

General.

(5) The number of actions filed under section 6312 by a

person other than the Attorney General that were completed.

(6) The amounts that were recovered in actions filed

under section 6312 by a person other than the Attorney

General through settlement or through a judgment and, if

20230HB1437PN1622 - 37 -

known, the amounts recovered for damages, penalties and

litigation costs and the amounts recovered by the

Commonwealth and the person.

(7) The amount expended by the Commonwealth for

investigation, litigation and all other costs for legal

claims under this chapter .

(8) A narrative describing the most notable or prevalent

violations of section 6311 (relating to acts subjecting

persons to liability and damages) and recommendations on how

Commonwealth agencies may prevent similar violations from

occurring.

(9) Legislative recommendations the Attorney General may

have for amendments to this chapter and any other law as it

relates to this chapter .

§ 6317. Statute of limitations, burden of proof and estoppel.

(a) Statute of limitations.--

(1) Subject to paragraph (2), a civil action under

section 6312 (relating to Attorney General investigations and

prosecutions and civil actions) 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 6312 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 6312(b), the following

shall apply:

(i) The Commonwealth may file its own complaint or

amend the qui tam plaintiff's complaint in order to

clarify or add detail to the legal claims and add any

20230HB1437PN1622 - 38 -

additional legal claims with respect to which the

Commonwealth contends that the Commonwealth 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

specified , or attempted to be specified , in the qui tam

plaintiff's complaint.

(b) Burden of proof.--In an action brought under section

6312, 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.

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 6312

that involves the same transaction as in the criminal

proceeding.

§ 6318. Certain rules, policies and agreements prohibited.

(a) General rule.--An employer may not:

(1) make, adopt or enforce 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 violation of section

6311 (relating to acts subjecting persons to liability and

damages); or

(2) require, as a condition of employment, during the

20230HB1437PN1622 - 39 -

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 6311; or

(ii) bring an action under section 6312(b) (relating

to Attorney General investigations and prosecutions and

civil actions) or 6319(b) (relating to relief from

retaliatory actions).

(b) Void effect.--A rule, regulation, policy or agreement

that violates subsection (a) is void to the extent of the

violation.

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 6319.

§ 6319. Relief from retaliatory actions.

(a) General rule.--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 chapter or other

efforts to stop a violation of this chapter .

(b) Relief.--Relief under sub section (a) shall include

reinstatement with the same seniority status that the employee,

20230HB1437PN1622 - 40 -

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.

plaintiff must 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

retaliation occurred.

§ 6320. Actions and remedies under other laws.

(a) Actions and remedies not exclusive.--The provisions of

this chapter are not exclusive and the actions and remedies

provided for in this chapter 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 chapter .

chapter shall not abrogate or modify any existing statutory or

common law privilege or immunity.

§ 6321. Qualification of chapter for increased share of

recoveries.

(a) Submission.--Within 30 days after the effective date of

this sub section , the Attorney General shall submit a copy of

this chapter and any other relevant information to the Office of

Inspector General, United States Department of Health and Human

20230HB1437PN1622 - 41 -

Services and request a determination that this chapter meets the

requirements of section 1909(b) of the Social Security Act of

1935 (49 Stat. 620, 42 U.S.C. § 1396h(b)) (relating to State

false claims act requirements for increased State share of

recoveries), in order to qualify the Commonwealth for an

increased share of amounts recovered under this chapter 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 chapter 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 6316 (relating to annual report), a report explaining

the reasons for the denial and suggested revisions to this

chapter which would cause this chapter to meet the requirements

of section 1909(b) of the Social Security Act of 1935.

§ 6322. Rules of procedure.

Except as otherwise specified in, or where clearly

inconsistent with, this chapter , original proceedings under this

chapter shall be governed by the Pennsylvania Rules of Civil

Procedure or other applicable court rule.

§ 6323. Trial by jury.

A party to an action under this chapter shall be entitled to

trial by jury.

§ 6324. Implementation.

(a) Regulations.--The Attorney General may promulgate

regulations as necessary to carry out the purposes of this

chapter.

(b) Temporary regulations.--

20230HB1437PN1622 - 42 -

(1) In order to facilitate the speedy implementation of

this chapter, the Attorney General may 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 review under any of the

following:

(i) Section 612 of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of

1929.

(ii) 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.

(iii) Sections 204(b) and 301(10) of the act of

October 15, 1980 (P.L.950, No.164), known as the

Commonwealth Attorneys Act.

(iv) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(2) The Attorney General may adopt necessary amendments

to a temporary regulation at any time before the temporary

regulation's expiration.

(3) The Attorney General shall transmit temporary

regulations and amendments to the Legislative Reference

Bureau for publication in the next available issue of the

Pennsylvania Bulletin.

(4) A temporary regulation or amendment shall take

effect upon transmission to the Legislative Reference Bureau,

unless the Attorney General designates a later date.

(5) Except as otherwise provided in paragraph (2),

temporary regulations and amendments shall expire the earlier

of three years after the effective date of this section, or a

20230HB1437PN1622 - 43 -

date the Attorney General designates.

(6) At any time before a temporary regulation expires

under paragraph (5), 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.

regulation or policy, shall implement provisions to:

(1) Control a person's disclosure, dissemination,

sharing or use of information that is protected under 18

Pa.C.S. Ch. 91 (relating to criminal history record

information) and that the person lawfully obtains in

connection with the enforcement of section 6311 (relating to

acts subjecting persons to liability and damages).

(2) In accordance with section 6313 (relating to civil

investigative demands), prevent unauthorized further

disclosure, dissemination, sharing or use of protected

information.

(d) Construction.--This section is not intended to impair

the Attorney General's discretion to adopt policies as necessary

to implement this chapter.

§ 6325. Jurisdiction and Attorney General as relator in false

claims act ions.

(a) Jurisdiction.--An action or petition under this chapter

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 6312 (relating to Attorney General

investigations and prosecutions and civil actions) or

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petition under section 6313 (relating to civil investigative

demands). The courts of common pleas shall have original

jurisdiction of any action under section 6319 (relating to

relief from retaliatory actions).

(2) A court exercising jurisdiction of an action under

this chapter shall have ancillary jurisdiction over a legal

claim asserted under the laws of the United States or a state

or local government which arises from the same transaction or

occurrence .

(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).

Federal Government or a state or local government that is named

as a coplaintiff with the Commonwealth in an action brought

under this chapter , the following shall apply to a seal on the

action ordered by the court under section 6312(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 of enforcing the law of that Federal,

State or local government respecting fraud or false

claims upon the Federal Government; or

(ii) disclosing to the officials substantially all

material evidence and information the Commonwealth or the

qui tam plaintiff possesses.

(2) The seal shall apply to the officials so served to

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the same extent as the seal applies to other parties in the

action.

(d) Definition.--For purposes of this section , the term

"state" includes the District of Columbia, the Commonwealth of

Puerto Rico, the Virgin Islands and all insular territories of

the United States.

§ 6326. Expiration.

(a) General rule.--Except as provided in paragraph (2), this

chapter shall expire 20 years after the effective date of this

section .

(b) Exception.--The expiration of this chapter shall not

apply to or otherwise affect the following:

(1) A violation of this chapter that occurred before the

expiration date.

(2) An investigation of an alleged violation of this

chapter that commenced, but was not completed, before the

expiration date.

Section 2. This act shall take effect in 60 days.

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