Regular Session 2017-2018 House Bill 1027 P.N. 1186

PRINTER'S NO. 1186

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1027

Session of

2017

INTRODUCED BY NEUMAN, SNYDER, CUTLER, JAMES, W. KELLER,

CALTAGIRONE, SOLOMON, GROVE, NEILSON AND SAYLOR,

MARCH 30, 2017

REFERRED TO COMMITTEE ON JUDICIARY, MARCH 30, 2017

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 treble damages, costs and civil

penalties, for powers of Attorney General and for qui tam

actions; 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-D

LIABILITY FOR FALSE CLAIMS

(a) Preliminary Provisions

Section 1401-D. Short title.

This article shall be known and may be cited as the Taxpayer

Prevention Against Fraud Act.

Section 1402-D. Declaration of policy.

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. §§ 3729-3733) on September 13,

1982, including the amendments enacted October 27, 1986 (Public

Law 99-562, 100 Stat. 3153), and all subsequent amendments.

Section 1403-D. 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:

"Account." The Fraud Prevention and Recovery Account

established in section 1414-D.

"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, which meets

any of the following:

(i) Is presented to an employee, officer or agent of

the Commonwealth.

(ii) Is made to 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 or interest of the Commonwealth, and

the Commonwealth:

(A) provides or has provided any portion of the

money or property requested or demanded; or

(B) will reimburse the contractor, grantee or

other recipient for any portion of the money or

property which is requested or demanded.

(2) The term does not include requests or demands for

money or property that the Commonwealth has paid to an

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individual as compensation for employment or as an income

subsidy with no restrictions on the individual's use of the

money or property.

(3) To the extent it is not connected to a request or

demand for money or property, a filing with a Commonwealth

agency pursuant to the Commonwealth's insurance laws shall

not constitute a claim.

"Knowingly." As follows:

(1) Whenever a person, with respect to information, does

any of the following:

(i) Has actual knowledge of the information.

(ii) Acts in deliberate ignorance of the truth or

falsity of the information.

(iii) Acts in reckless disregard of the truth or

falsity of the information.

(2) Proof of specific intent to defraud is not required.

"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:

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(1) Use in connection with internal memoranda and

reports.

(2) Communications between the Office of Attorney

General and a Federal, State or local government agency or a

contractor of a Federal, State or local government agency,

undertaken in furtherance of an investigation or prosecution

of an action.

(3) Interviews of a qui tam plaintiff or other witness.

(4) Oral examinations.

(5) Depositions.

(6) Preparation for and response to civil discovery

requests.

(7) Introduction into the record of an action or

proceeding.

(8) Applications, motions, memoranda and briefs

submitted to a court or other tribunal.

(9) Communications with investigators, auditors,

consultants and experts, the counsel of other parties,

arbitrators and mediators, concerning an investigation,

action or proceeding.

"Original source." An individual who:

(1) prior to a public disclosure under section 1412-D(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-D.

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

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organization, partnership, business or trust.

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

section 1412-D.

(b) False Claims

Section 1411-D. Acts subjecting persons to liability and

damages.

(a) Liability.--A person who commits an act prohibited in

subsection (b) shall be liable to the Commonwealth for three

times the amount of damages which the Commonwealth sustains

because of the act of that person.

(b) Prohibited acts.--A person who commits any of the

following acts shall also be liable to the Commonwealth for a

civil penalty of not less than $5,500 and not more than $11,000

for each violation:

(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.

(5) Knowingly buys or receives as a pledge of an

obligation or debt, public property from an officer or

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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).

court may assess not less than two times the amount of damages

which the Commonwealth sustains because of the act of the person

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

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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.

(d) Exclusion.--This section does not apply to claims,

records or statements made under the act of March 4, 1971

(P.L.6, No.2) , known as the Tax Reform Code of 1971.

(e) Actions to recover damages and adjustment of

penalties.--A person who is liable for damages or penalties

under subsection (a) or (b) shall also be liable to the

Commonwealth for the reasonable costs of a civil action,

including reasonable costs to the Office of Attorney General,

brought to recover any of those damages or penalties.

(f) Adjustments.--The civil penalties payable under

subsection (b) shall be adjusted from time to time as provided

in the Federal Civil Penalties Inflation Adjustment Act of 1990

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

(g) Exemption from disclosure.--Information furnished under

subsection (c) shall be exempt from disclosure under the act of

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

Section 1412-D. Attorney General investigations and

prosecutions and civil actions.

(a) Responsibilities of Attorney General.--The Attorney

General shall investigate a violation of section 1411-D. If the

Attorney General finds that a person has violated or is

violating section 1411-D, the Attorney General may bring a civil

action in Commonwealth Court under this section against that

person.

(b) Actions by qui tam plaintiffs.--

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

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Commonwealth Court for a violation of section 1411-D 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 on the Attorney

General. 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) The Commonwealth may, for good cause shown, move the

court for extensions of the time during which the complaint

remains under seal under paragraph (2). The motions 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.

(4) Before the expiration of the 60-day period or any

extensions obtained under paragraph (3), the Commonwealth

shall:

(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.

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under subsection (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 the parties to qui tam actions.--

(1) If the Commonwealth proceeds with the action, 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

set forth in paragraph (2).

(2) (i) The Commonwealth may move to dismiss the action

for good cause despite the objections of the qui tam

plaintiff if the qui tam plaintiff has been notified by

the Commonwealth of the filing of the motion and the

court has provided the qui tam plaintiff with an

opportunity to oppose the motion and present evidence at

a hearing.

(ii) The Commonwealth may settle the action with the

defendant despite the objections of the qui tam plaintiff

if the court determines, after a hearing providing the

qui tam plaintiff an opportunity to present evidence,

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.

(iii) Upon a showing by the Commonwealth that

unrestricted participation during the course of the

action by the qui tam plaintiff would interfere with or

unduly delay the Commonwealth's prosecution of the case

or would be repetitious, irrelevant or for purposes of

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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 the testimony of the

witnesses;

examination of witnesses; or

(D) otherwise limiting the participation by the

qui tam plaintiff in the action.

(iv) Upon a showing by the defendant that

unrestricted participation during the action by the qui

tam plaintiff would be for purposes of harassment or

would cause the defendant undue burden or unnecessary

expense, the court may limit the participation by the qui

tam plaintiff 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, it shall be served

with copies of all pleadings filed in the action and shall be

supplied with copies of all deposition transcripts at the

Commonwealth's expense. The court, without limiting the

status and rights of the qui tam plaintiff, may 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 a showing by the Commonwealth 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

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court may stay the discovery for a period of not more than 60

days. The showing shall be conducted in camera. The court may

extend the 60-day period upon a 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 its claim 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.

(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 paragraph, receive at least 15% but

not more than 25% of the proceeds of the action or settlement

of the claim, depending upon the extent to which either or

both the qui tam plaintiff and counsel for the qui tam

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plaintiff substantially contributed to the prosecution of the

action. Where 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 or in a legislative or administrative

report, hearing, audit or investigation or from the news

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

but in no case more than 10% of the proceeds, taking into

account the significance of the information and the role of

the qui tam plaintiff in advancing the action. A payment to a

qui tam plaintiff under the first or second sentence of this

paragraph shall be made from the proceeds. The qui tam

plaintiff shall also 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.

(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 claim, as the court deems reasonable.

The amount shall be paid from the proceeds. The qui tam

plaintiff shall also receive an amount for reasonable

expenses which the court finds to have been necessarily

incurred, plus reasonable attorney fees and costs. The

expenses, fees and costs shall be awarded against the

defendant.

(3) Whether or not the Commonwealth proceeds with the

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

initiated the violation of section 1411-D upon which the

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action was filed, then the court may, to the extent the court

considers appropriate, reduce the share of the proceeds of

the action which the qui tam plaintiff would otherwise

receive under paragraph (1) or (2), taking into account the

role of the qui tam plaintiff in advancing the action and any

relevant circumstances pertaining to the violation. 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 right of the Commonwealth

to continue the action.

(4) 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

the claim of the qui tam plaintiff was clearly frivolous,

clearly vexatious or brought primarily for purposes of

harassment.

(f) Limitations on actions.--

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

filed under this section against the Governor, the Lieutenant

Governor, 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 the provisions of paragraph (3), the

court shall dismiss an action or claim brought under

subsection (b) if substantially the same allegations or

transactions alleged in the action or claim were publicly

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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 State legislative or other State report,

hearing, audit or investigation.

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

(2) if:

(i) the action was brought by the Attorney General;

(ii) the dismissal is opposed by the Attorney

General; or

(iii) the qui tam plaintiff is the original source

of the information.

(4) In no event may a person bring an action under this

section which is based upon allegations or transactions which

are the subject of a civil suit or an administrative civil

money penalty proceeding in which the Commonwealth is already

a party.

(g) Commonwealth not liable for certain expenses.--The

Commonwealth is not liable for expenses which a qui tam

plaintiff incurs in bringing an action under this section.

(h) (Reserved) .

(i) Civil investigative demand.--

(1) (i) The Attorney General shall have the authority

to issue civil investigative demands under paragraph (2).

(ii) Nothing in this subsection 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 subarticle.

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(2) (i) Whenever the Attorney General has reason to

believe that a person may be in possession, custody or

control of documentary material relevant to an

investigation under this subarticle, the Attorney General

may issue in writing, and cause to be served upon the

person, a civil investigative demand requiring the

production of the material for examination.

(ii) Each demand shall:

(A) state the nature of the conduct constituting

the alleged violation which is under investigation,

the applicable provision of law and the connection

between the documentary material demanded and the

conduct under investigation;

(B) describe the class or classes of documentary

material to be produced with sufficient definiteness

and certainty to permit the material to be fairly

identified;

prescribe a return date which will provide a

reasonable time period within which the material

demanded may be assembled and made available for

inspection and copying or reproduction;

(D) identify an investigator to whom the

material shall be made available; and

(E) contain the following statement printed

conspicuously at the top 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."

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(iii) The demand shall not:

(A) contain a requirement which would be held to

be unreasonable if contained in a subpoena duces

tecum issued by a court in connection with a grand

jury investigation of such alleged violation; or

(B) require the production of documentary

evidence which would be privileged from disclosure if

demanded by a subpoena duces tecum issued by a court

in connection with a grand jury investigation of the

alleged violation.

(iv) Service of a demand or a petition filed under

this paragraph shall be made in the manner prescribed by

the Pennsylvania Rules of Civil Procedure for service of

writs and complaints.

(v) A verified return by the individual serving a

demand or petition setting forth the manner of service

shall be prima facie proof of the service. In the case of

a service by registered or certified mail, the return

shall be accompanied by the return post office receipt of

delivery of the demand.

(vi) (A) A person upon whom a demand issued under

this subsection has been duly served shall make the

material available for inspection and copying or

reproduction to the investigator designated at the

principal place of business of the person, or at

another place as the investigator and person may

agree or as the court may direct under this

paragraph, on the return date specified in the

demand. The person may, upon agreement of the

investigator, substitute copies of all or a part of

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the material for the originals.

(B) The investigator to whom documentary

material is delivered shall take physical possession

of the material and shall be responsible for the use

for which the material is made and for the material's

return under this paragraph. The investigator may

cause the preparation of copies of the documentary

material as may be required for official use. While

in the possession of the investigator, no material

produced shall be available for examination by an

individual other than the Attorney General or

investigator without the consent of the person who

produced the material. Under reasonable terms and

conditions as the Attorney General shall prescribe,

documentary material, while in the possession of the

investigator, shall be available for examination by

the person who produced the material or a duly

authorized representative of the person.

which documentary material was produced under this

paragraph and a case or proceeding arising from the

investigation, the investigator shall return to the

person who produced the material all of the material

other than copies made under this paragraph which

have not passed into the control of a court or grand

jury through introduction into the record of the case

or proceeding.

(D) When documentary material has been produced

by a person under this paragraph for use in an

investigation and no case or proceeding arising from

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the material has been instituted within a reasonable

time after completion of the examination and analysis

of all evidence assembled in the course of the

investigation, the person shall be entitled, upon

written demand made upon the Attorney General, to the

return of all documentary material, other than copies

made under this paragraph, produced by the person.

(vii) Whenever a person fails to comply with a civil

investigative demand duly served upon the person under

this paragraph, or whenever satisfactory copying or

reproduction of the material cannot be done and the

person refuses to surrender the material, the Attorney

General may file in Commonwealth Court and serve upon the

person a petition for an order of the court for the

enforcement of this paragraph.

(viii) Within 20 days after the service of the

demand upon a person, or at any time before the return

date specified in the demand, whichever period is

shorter, the person may file in Commonwealth Court and

serve upon the Attorney General a petition for an order

of the court modifying or setting aside the demand. The

time allowed for compliance with the demand, in whole or

in part, as deemed proper and ordered by the court, shall

not run during the pendency of the petition in the court.

The petition shall specify each ground upon which the

petitioner relies in seeking the relief, and may be based

upon a failure of the demand to comply with the

provisions of this paragraph or upon a constitutional or

other legal right or privilege of the person.

(ix) When the Attorney General is in custody or

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control of documentary material delivered by a person in

compliance with a demand, the person may file in

Commonwealth Court and serve upon the Attorney General a

petition for an order of the court requiring the

performance of a duty imposed by this paragraph.

(x) Whenever a petition is filed under this

paragraph, the court shall have jurisdiction to hear and

determine the matter so presented and, after a hearing at

which all parties are represented, to enter an order as

may be required to carry into effect the provisions of

this paragraph.

(3) Whenever an individual refuses, on the basis of the

individual's Fifth Amendment privilege against self-

incrimination, to comply with a civil investigative demand

issued under paragraph (2), the Attorney General may invoke

the provisions of 42 Pa.C.S. § 5947 (relating to immunity of

witnesses).

(4) If a civil investigative demand is an express demand

for the production of discovery, the Attorney General shall

cause to be served, in a manner authorized under this

subsection, a copy of the demand upon the person from whom

the discovery was obtained and shall notify the person to

whom the demand is issued of the date on which the copy was

served. Information obtained by the Attorney General under

this subsection may be shared with a qui tam plaintiff if the

Attorney General determines it is necessary as part of an

investigation of a claim.

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

cooperate in the investigation and prosecution of false claims

under this section, whether the claims are brought by the

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Attorney General or a qui tam plaintiff.

Section 1413-D. Deposit of Commonwealth proceeds.

The Commonwealth's share of the proceeds of an action under

this article, not including the costs of a civil action paid to

the Commonwealth under section 1411-D(e) and less any amount

legally required to be paid from the share, shall be deposited

as follows:

(1) If the violation of section 1411-D was pursuant to a

claim that was paid from or related to a fund or account

other than the General Fund, then the Commonwealth's share of

the proceeds shall be deposited into that fund or account.

(2) If the violation of section 1411-D was pursuant to a

claim that was paid from or related to the General Fund, then

the Commonwealth's share of the proceeds shall be deposited

into the Fraud Prevention and Recovery Account .

(3) If the violation of section 1411-D was pursuant to a

claim that was paid from or related to more than one fund or

account, then the Commonwealth's share of the proceeds shall

be deposited into the funds or accounts on a pro rata basis

in accordance with paragraphs (1) and (2).

Section 1414-D. Fraud Prevention and Recovery Account.

A restricted account is established within the General Fund

to be known as the Fraud Prevention and Recovery Account. The

money in the account shall not lapse. Money in the account may

only be used as appropriated by the General Assembly.

Section 1415-D. Annual report.

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

annual report concerning actions taken under this article by

December 31 each year, beginning December 31, 2017. The report

shall be submitted to the following:

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(1) The Governor.

(2) The chairman and minority chairman of the Judiciary

Committee of the Senate.

(3) The chairman and minority chairman of the Judiciary

Committee of the House of Representatives.

(4) The chairman and minority chairman of the

Appropriations Committee of the Senate.

(5) The chairman and minority chairman of the

Appropriations Committee of the House of Representatives.

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

(1) The number of actions filed by the Attorney General.

(2) The number of actions filed by the Attorney General

that were completed.

(3) The amount that was recovered in actions filed 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 by a person other than

the Attorney General.

(5) The number of actions filed by a person other than

the Attorney General that were completed.

(6) The amount that was recovered in actions filed by a

person other than the Attorney General through settlement or

through a judgment and, if known, the amount recovered for

damages, penalties and litigation costs and the amount

recovered by the Commonwealth and the person.

(7) The amount expended by the Commonwealth for

investigation, litigation and all other costs for claims

under this article.

(8) A narrative describing the most notable or prevalent

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violations of section 1411-D and recommendations on how

Commonwealth agencies may prevent similar violations from

occurring.

(9) Legislative recommendations the Attorney General may

have for amendments to this article.

Section 1416-D. Statute of limitations; burden of proof;

estoppel.

(a) Statute of limitations.--

(1) A civil action under section 1412-D may not be

brought more than 10 years after the date on which the

violation was committed.

(2) (i) If the Commonwealth elects to intervene and

proceed with an action brought under section 1412-D(b),

the Commonwealth may file its own complaint or amend the

complaint of the qui tam plaintiff who brought the action

in order to clarify or add detail to the claims and to

add any additional claims with respect to which the

Commonwealth contends it is entitled to relief.

(ii) If the Commonwealth makes an election under

subparagraph (i), a Commonwealth pleading shall relate

back to the filing date of the complaint of the qui tam

plaintiff to the extent that the claim of the

Commonwealth arises 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-D, 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.

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final judgment rendered in favor of the Commonwealth 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 which involves the same

transaction as in the criminal proceeding and which is brought

under section 1412-D(a) or (b).

Section 1417-D. Relief from retaliatory actions.

(a) General rule.--An employee, contractor or agent shall be

entitled to all relief necessary to make that employee,

contractor or agent whole, if that 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 one or more violations of this article.

(b) Relief.--Relief under subsection (a) shall include

reinstatement with the same seniority status that the 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.

have exclusive jurisdiction for all actions seeking relief under

this section.

(d) Limitation.--An action under this section may not be

brought more than three years after the date when the

retaliation occurred.

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Section 1418-D. Remedies under other laws.

The provisions of this article are not exclusive, and the

remedies provided for in this article shall be in addition to

any other remedies provided for in any other law or available

under common law.

Section 1419-D. Qualification of act for increased share of

recoveries.

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

this article, the Attorney General shall submit a copy of this

article and any other relevant information to the Office of

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 (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, the Attorney General

shall prepare a report explaining the reasons for the denial and

suggested revisions to this article which would cause this

article to meet the requirements of section 1909(b) of the

Social Security Act. A copy of the report shall be transmitted

to the officials designated to receive the report required under

section 1415-D(a).

Section 2. This act shall take effect immediately.

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