PRIOR PRINTER'S NO. 3717 PRINTER'S NO. 3932
No. 2509 Session of 2008
INTRODUCED BY GERBER, KENNEY, ADOLPH, BELFANTI, BRENNAN,
CAPPELLI, CUTLER, FAIRCHILD, FRANKEL, GEORGE, GINGRICH,
GODSHALL, GOODMAN, HALUSKA, HARKINS, HARPER, JOSEPHS,
KILLION, LENTZ, LONGIETTI, MANN, McGEEHAN, McILHATTAN,
McILVAINE SMITH, MENSCH, MICOZZIE, MOUL, NAILOR, M. O'BRIEN,
PALLONE, PASHINSKI, PAYNE, PHILLIPS, READSHAW, REICHLEY,
RUBLEY, SANTONI, SIPTROTH, VULAKOVICH, WATSON, SURRA, SAYLOR,
J. WHITE, KULA, MILNE, BOBACK, McCALL, SABATINA, HESS,
MAHONEY, MURT, SONNEY, HARHAI, WALKO, GRELL, GEIST, THOMAS,
K. SMITH, HORNAMAN AND KORTZ, MAY 7, 2008
AS REPORTED FROM COMMITTEE ON HEALTH AND HUMAN SERVICES, HOUSE
OF REPRESENTATIVES, AS AMENDED, JUNE 11, 2008
AN ACT
1 Providing for liability for false claims, for treble damages,
2 costs and civil penalties, for powers of the Attorney
3 General, for qui tam actions and for adoption of legislative
4 history of the Federal False Claims Act.
5 TABLE OF CONTENTS
6 Chapter 1. Preliminary Provisions
7 Section 101. Short title.
8 Section 102. Definitions.
9 Chapter 3. False Claims
10 Section 301. Acts subjecting persons to liability for treble
11 damages, costs and civil penalties; exceptions.
12 Section 302. Civil actions for false claims.
13 Section 303. False claims procedure.
14 Section 304. Remedies under other laws; severability of
1 provisions; liberality of legislative
2 construction; adoption of legislative history.
3 Section 305. Regulations.
4 Chapter 21. Miscellaneous Provisions
5 Section 2101. Effective date.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 CHAPTER 1
9 PRELIMINARY PROVISIONS
10 Section 101. Short title.
11 This act shall be known and may be cited as the False Claims
12 Act.
13 Section 102. Definitions.
14 The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Attorney General." The Attorney General of the
18 Commonwealth.
19 "Claim." Any request or demand for money, property or
20 services made to any employee, officer or agent of the
21 Commonwealth, or to any contractor, grantee or other recipient,
22 whether under contract or not, if any portion of the money,
23 property or services requested or demanded, issued from or was
24 provided by the Commonwealth, or if the Commonwealth will
25 reimburse such contractor, grantee or other recipient for any
26 portion of the money or property which is requested or demanded.
27 "Commonwealth." The Commonwealth of Pennsylvania and any
28 department, board, bureau, division, commission, committee,
29 public benefit corporation, public authority, council, office or
30 other government entity performing a governmental or proprietary
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1 function for the Commonwealth.
2 "Employer." Any natural person, corporation, firm,
3 association, organization, partnership, business, trust or
4 Commonwealth-affiliated entity involved in a nongovernmental
5 function, including State universities and State hospitals.
6 "Executive-level State employee." The meaning ascribed to it
7 in 65 Pa.C.S. § 1102 (relating to definitions).
8 "Knowing" and "knowingly." Whenever a person, with respect
9 to information, does any of the following:
10 (1) Has actual knowledge of the information.
11 (2) Acts in deliberate ignorance of the truth or falsity
12 of the information.
13 (3) Acts in reckless disregard of the truth or falsity
14 of the information.
15 Proof of specific intent to defraud is not required.
16 "Qui tam plaintiff." A person who initiates an action
17 pursuant to section 302(b).
18 CHAPTER 3
19 FALSE CLAIMS
20 Section 301. Acts subjecting persons to liability for treble
21 damages, costs and civil penalties; exceptions.
22 (a) Liability.--Any person who commits any of the following
23 acts shall be liable to the Commonwealth for three times the
24 amount of damages which the Commonwealth sustains because of the
25 act of that person. A person who commits any of the following
26 acts shall also be liable to the Commonwealth for the costs of a
27 civil action brought to recover any of those penalties or
28 damages and shall be liable to the Commonwealth for a civil
29 penalty of not less than $5,000 and not more than $10,000 for
30 each violation:
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1 (1) Knowingly presents or causes to be presented to any
2 employee, officer or agent of the Commonwealth or to any
3 contractor, grantee or other recipient of Commonwealth funds,
4 a false or fraudulent claim for payment or approval.
5 (2) Knowingly makes, uses or causes to be made or used,
6 a false record or statement to get a false or fraudulent
7 claim paid or approved.
8 (3) Conspires to defraud the Commonwealth by getting a
9 false OR FRAUDULENT claim allowed or paid or conspires to <--
10 defraud the Commonwealth by knowingly making, using or
11 causing to be made or used, a false record or statement to
12 conceal, avoid or decrease an obligation to pay or transmit
13 money or property to the Commonwealth.
14 (4) Has possession, custody or control of public
15 property or money used or to be used by the Commonwealth and
16 knowingly delivers or causes to be delivered less property
17 than the amount for which the person receives a certificate
18 or receipt.
19 (5) Is authorized to make or deliver a document
20 certifying receipt of property used or to be used by the
21 Commonwealth and knowingly, INTENDING TO DEFRAUD THE <--
22 COMMONWEALTH, makes or delivers the receipt without
23 completely knowing that the information on the receipt is
24 true.
25 (6) Knowingly buys or receives as a pledge of an
26 obligation or debt, public property from an officer or
27 employee of the Commonwealth who lawfully may not sell or
28 pledge the property.
29 (7) Knowingly makes, uses or causes to be made or used,
30 a false record or statement to conceal, avoid or decrease an
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1 obligation to pay or transmit money or property to the
2 Commonwealth.
3 (8) Is a beneficiary of an inadvertent submission of a
4 false claim to any employee, officer or agent of the
5 Commonwealth or to any contractor, grantee or other recipient
6 of Commonwealth funds, subsequently discovers the falsity of
7 the claim and fails to disclose the false claim to the
8 Commonwealth within a reasonable time after discovery of the
9 false claim.
10 (9) Having a duty to make disclosure of a fact, event or
11 occurrence, knowingly fails to disclose such fact, event or
12 occurrence in order to conceal, avoid or decrease an
13 obligation to pay or transmit money or property to the
14 Commonwealth.
15 (b) Damages limitation.--The court may limit the damages
16 assessed under subsection (a) to not less than two times the
17 amount of damages which the Commonwealth sustains because of the
18 act of the person described in that subsection if the court
19 finds all of the following:
20 (1) The person committing the violation furnished
21 officials of the Commonwealth who are responsible for
22 investigating false claims violations with all information
23 known to that person about the violation within 30 days after
24 the date on which the person first obtained the information.
25 (2) The person fully cooperated with any investigation
26 by the Commonwealth of the violation.
27 (3) At the time the person furnished the Commonwealth
28 with information about the violation, no criminal
29 prosecution, civil action or administrative action has
30 commenced with respect to the violation, and the person did
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1 not have actual knowledge of the existence of an
2 investigation into the violation.
3 (c) Exclusion.--This section does not apply to claims,
4 records or statements made pursuant to the act of March 4, 1971
5 (P.L.6, No.2), known as the Tax Reform Code of 1971.
6 (d) Right-to-Know Law exemption.--Any information furnished
7 pursuant to subsection (b) shall be exempt from public access
8 under the act of February 14, 2008 (P.L. , No.3), known JUNE <--
9 21, 1957 (P.L.390, NO.212), REFERRED TO as the Right-to-Know
10 Law.
11 Section 302. Civil actions for false claims.
12 (a) Responsibilities of the Attorney General.--The Attorney
13 General diligently shall investigate a violation under section
14 301. If the Attorney General finds that a person has violated or
15 is violating section 301, the Attorney General may bring a civil
16 action under this section against that person. No action may be
17 filed pursuant to this subsection against the Commonwealth or
18 any officer or employee thereof acting in his official capacity.
19 Sections 204(c), 301(6) and 303 of the act of October 15, 1980
20 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
21 shall apply to civil actions that may be brought by the Attorney
22 General under this subsection.
23 (b) Actions by private persons.--
24 (1) A person may bring a civil action for a violation of
25 section 301 for the person and for the Commonwealth. The
26 action shall be brought in the name of the Commonwealth. Once
27 filed, the action may be dismissed only if the court gives
28 written consent to the dismissal, taking into account the
29 best interests of the parties involved and the public
30 purposes behind this chapter.
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1 (2) A copy of the complaint and written disclosure of
2 substantially all material evidence and information the
3 person possesses shall be served on the Attorney General
4 pursuant to applicable rules of the Pennsylvania Rules of
5 Civil Procedure. The complaint shall be filed in camera and
6 shall remain under seal for at least 60 days and shall not be
7 served on the defendant until the court so orders. The
8 Commonwealth may elect to intervene and proceed with the
9 action within 60 days after it receives both the complaint
10 and the material evidence and information.
11 (3) The Commonwealth may, for good cause shown, move the
12 court for extensions of the time during which the complaint
13 remains under seal under paragraph (2). Any such motions may
14 be supported by affidavits or other submissions in camera.
15 The defendant shall not be required to respond to any
16 complaint filed under this section until 30 days after the
17 complaint is unsealed and served upon the defendant pursuant
18 to the Pennsylvania Rules of Civil Procedure.
19 (4) Before the expiration of the 60-day period or any
20 extensions obtained under paragraph (3), the Commonwealth
21 shall:
22 (i) proceed with the action, in which case the
23 action shall be conducted by the Commonwealth; or
24 (ii) notify the court that it declines to take over
25 the action, in which case the person bringing the action
26 shall have the right to conduct the action.
27 (5) When a person brings a valid action under this
28 subsection, no person other than the Commonwealth may
29 intervene or bring a related action based on the facts
30 underlying the pending action.
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1 (6) No action may be filed pursuant to this subsection
2 against the Commonwealth or any officer or employee thereof
3 acting in his official capacity.
4 (c) Rights of the parties to qui tam actions.--
5 (1) If the Commonwealth proceeds with the action, it
6 shall have the primary responsibility for prosecuting the
7 action and shall not be bound by an act of the qui tam
8 plaintiff. The qui tam plaintiff shall have the right to
9 continue as a party to the action, subject to the limitations
10 set forth in paragraph (2).
11 (2) (i) The Commonwealth may seek to dismiss the action
12 for good cause notwithstanding the objections of the qui
13 tam plaintiff if the qui tam plaintiff has been notified
14 by the Commonwealth of the filing of the motion and the
15 court has provided the qui tam plaintiff with an
16 opportunity to oppose the motion and present evidence at
17 a hearing.
18 (ii) The Commonwealth may settle the action with the
19 defendant notwithstanding the objections of the qui tam
20 plaintiff if the court determines, after a hearing, that
21 the proposed settlement is fair, adequate and reasonable
22 under all of the circumstances. Upon a showing of good
23 cause, such hearing may be held in camera.
24 (iii) Upon a showing by the Commonwealth that the
25 qui tam plaintiff's unrestricted participation during the
26 course of the litigation would interfere with or unduly
27 delay the Commonwealth's prosecution of the case or would
28 be repetitious, irrelevant or for purposes of harassment,
29 the court may, in its discretion, impose limitations on
30 the person's participation, such as:
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1 (A) limiting the number of witnesses the person
2 may call;
3 (B) limiting the length of the testimony of such
4 witnesses;
5 (C) limiting the qui tam plaintiff's cross-
6 examination of witnesses; or
7 (D) otherwise limiting the participation by the
8 qui tam plaintiff in the litigation.
9 (iv) Upon a showing by the defendant that the qui
10 tam plaintiff's unrestricted participation during the
11 course of the litigation would be for purposes of
12 harassment or would cause the defendant undue burden or
13 unnecessary expense, the court may limit the
14 participation by the qui tam plaintiff in the litigation
15 in the same manner set forth in subparagraph (iii).
16 (3) If the Commonwealth elects not to proceed with the
17 action, the qui tam plaintiff shall have the right to conduct
18 the action. If the Commonwealth so requests, it shall be
19 served with copies of all pleadings filed in the action and
20 shall be supplied with copies of all deposition transcripts
21 at the Commonwealth's expense. When a qui tam plaintiff
22 proceeds with the action, the court, without limiting the
23 status and rights of the qui tam plaintiff, may permit the
24 Commonwealth to intervene at a later date upon a showing of
25 good cause.
26 (4) Whether or not the Commonwealth proceeds with the
27 action, upon a showing by the Commonwealth that certain
28 actions of discovery by the qui tam plaintiff would interfere
29 with the Commonwealth's investigation or prosecution of a
30 criminal or civil matter arising out of the same facts, the
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1 court may stay such discovery for a period of not more than
2 60 days. Such a showing shall be conducted in camera. The
3 court may extend the 60-day period upon a further showing in
4 camera that the Commonwealth has pursued the criminal or
5 civil investigation or proceedings with reasonable diligence
6 and any proposed discovery in the civil action will interfere
7 with the ongoing criminal or civil investigations or
8 proceedings.
9 (5) Notwithstanding subsection (b), the Commonwealth may
10 elect to pursue its claim through any alternate remedy
11 available to the Commonwealth, including any administrative
12 proceeding to determine a civil money penalty. If any such
13 alternate remedy is pursued in another proceeding, the qui
14 tam plaintiff shall have the same rights in such proceeding
15 as the person would have had if the action had continued
16 under this section. Any finding of fact or conclusion of law
17 made in the other proceeding that has become final shall be
18 conclusive on all parties to an action under this section.
19 For purposes of the preceding sentence, a finding or
20 conclusion is final if it has been finally determined on
21 appeal to the appropriate court of the Commonwealth, if all
22 time for filing such an appeal with respect to the finding or
23 conclusion has expired or if the finding or conclusion is not
24 subject to judicial review.
25 (d) Award to qui tam plaintiff.--
26 (1) (i) If the Commonwealth proceeds with an action
27 brought by a qui tam plaintiff under subsection (b), the
28 qui tam plaintiff shall, subject to subparagraph (ii),
29 receive at least 15% but not more than 25% of the
30 proceeds of the action or settlement of the claim,
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1 depending upon the extent to which either the qui tam
2 plaintiff or his counsel, or both, substantially
3 contributed to the prosecution of the action.
4 (ii) Where the action is one which the court finds
5 to be based primarily on disclosures of specific
6 information, other than information provided by the qui
7 tam plaintiff, relating to allegations or transactions in
8 a criminal, civil or administrative hearing or in a
9 legislative or administrative report, hearing, audit or
10 investigation or from the news media, the court may award
11 such sums as it considers appropriate but in no case more
12 than 10% of the proceeds, taking into account the
13 significance of the information and the role of the qui
14 tam plaintiff in advancing the case to litigation.
15 (iii) Any payment to a qui tam plaintiff under
16 subparagraph (i) or (ii) shall be made from the proceeds.
17 (iv) The qui tam plaintiff shall also receive an
18 amount for reasonable expenses which the court finds to
19 have been necessarily incurred, plus reasonable attorney
20 fees and costs. All such expenses, fees and costs shall
21 be awarded against the defendant.
22 (2) If the Commonwealth does not proceed with an action
23 under this section, the qui tam plaintiff shall receive an
24 amount which the court decides is reasonable for collecting
25 the civil penalty and damages. The amount shall not be less
26 than 25% and not more than 30% of the proceeds of the action
27 or settlement and shall be paid out of the proceeds. The qui
28 tam plaintiff shall also receive an amount for reasonable
29 expenses which the court finds to have been necessarily
30 incurred, plus reasonable attorney fees and costs. All such
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1 expenses, fees and costs shall be awarded against the
2 defendant.
3 (3) Whether or not the Commonwealth proceeds with the
4 action, if the court finds that the qui tam plaintiff planned
5 and initiated the violation of section 301 upon which the
6 action was brought, then the court may, to the extent the
7 court considers appropriate, reduce the share of the proceeds
8 of the action which the qui tam plaintiff would otherwise
9 receive under paragraph (1) or (2), taking into account the
10 role of the qui tam plaintiff in advancing the case to
11 litigation and any relevant circumstances pertaining to the
12 violation. If the qui tam plaintiff is convicted of criminal
13 conduct arising from his role in the violation of section
14 301, that person shall be dismissed from the civil action and
15 shall not receive any share of the proceeds of the action.
16 Such dismissal shall not prejudice the right of the
17 Commonwealth to continue the action.
18 (4) If the Commonwealth does not proceed with the action
19 and the qui tam plaintiff conducts the action, the court may
20 award to the defendant its reasonable attorney fees and
21 expenses if the defendant prevails in the action and the
22 court finds that the claim of the qui tam plaintiff was
23 clearly frivolous, clearly vexatious or brought primarily for
24 purposes of harassment.
25 (e) Certain actions barred.--
26 (1) No court shall have jurisdiction over an action
27 brought under subsection (b) against a member of the General
28 Assembly, a member of the judiciary or an executive-level
29 State employee if the action is based on evidence or
30 information known to the Commonwealth when the action was
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1 brought.
2 (2) In no event may a person bring an action under
3 subsection (b) which is based upon allegations or
4 transactions which are the subject of a civil suit or an
5 administrative civil money penalty proceeding in which the
6 Commonwealth is already a party.
7 (3) (i) Upon timely motion of the Attorney General, a
8 court shall dismiss an action brought under subsection
9 (b) if the allegations relating to the essential elements
10 of the action are based exclusively on the public
11 disclosure of allegations or transactions in a criminal,
12 civil or administrative hearing, in a legislative or
13 administrative report, audit or investigation or from the
14 news media.
15 (ii) For purposes of this paragraph:
16 (A) The term "public disclosure" includes only
17 disclosures made on the public record or that have
18 otherwise been disseminated broadly to the general
19 public.
20 (B) The qui tam plaintiff does not create a
21 public disclosure by obtaining information from the
22 act of February 14, 2008 (P.L. , No.3), known JUNE <--
23 21, 1957 (P.L.390, NO.212), REFERRED TO as the Right-
24 to-Know Law, or from information exchanges with law
25 enforcement and other Commonwealth employees if such
26 information would not otherwise be considered
27 publicly disclosed.
28 (C) An action is "based exclusively on a public
29 disclosure" only if the qui tam plaintiff derived his
30 knowledge of all essential elements of liability of
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1 the action alleged in his complaint from the public
2 disclosure.
3 (f) Commonwealth not liable for certain expenses.--The
4 Commonwealth is not liable for expenses which a person incurs in
5 bringing an action under subsection (b).
6 (g) Private action for retaliation action.--Any employee who
7 is discharged, demoted, suspended, threatened, harassed or in
8 any other manner discriminated against in the terms and
9 conditions of employment by his or her employer because of
10 lawful acts done by the employee on behalf of the employee or
11 others in furtherance of an action under this section, including
12 investigation for, initiation of, testimony for or assistance in
13 an action filed or to be filed under this section, shall be
14 entitled to all relief necessary to make the employee whole.
15 Such relief shall include reinstatement with the same seniority
16 status such employee would have had but for the discrimination,
17 two times the amount of back pay, interest on the back pay and
18 compensation for any special damages sustained as a result of
19 the discrimination, including litigation costs and reasonable
20 attorney fees. An employee may bring an action in the
21 appropriate court of common pleas of this Commonwealth for the
22 relief provided in this subsection.
23 (h) Civil investigative demand.--
24 (1) (i) The Attorney General shall have the authority
25 to issue civil investigative demands pursuant to
26 paragraph (2).
27 (ii) Nothing contained in this subsection shall be
28 construed to limit the regulatory or investigative
29 authority of any department or agency of the Commonwealth
30 whose functions might relate to persons, enterprises, or
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1 matters falling within the scope of this chapter.
2 (2) (i) Whenever the Attorney General has reason to
3 believe that any person or enterprise may be in
4 possession, custody, or control of any documentary
5 material relevant to an investigation under this chapter,
6 the Attorney General may issue in writing, and cause to
7 be served upon such person or enterprise, a civil
8 investigative demand requiring the production of such
9 material for examination.
10 (ii) Each such demand shall do all of the following:
11 (A) State the nature of the conduct constituting
12 the alleged violation which is under investigation,
13 the provision of law applicable thereto and the
14 connection between the documentary material demanded
15 and the conduct under investigation.
16 (B) Describe the class or classes of documentary
17 material to be produced thereunder with such
18 definiteness and certainty as to permit such material
19 to be fairly identified.
20 (C) State that the demand is returnable
21 forthwith or prescribe a return date which will
22 provide a reasonable period of time within which the
23 material so demanded may be assembled and made
24 available for inspection and copying or reproduction.
25 (D) Identify an investigator to whom such
26 material shall be made available.
27 (E) Contain the following statement printed
28 conspicuously at the top of the demand: "You have the
29 right to seek the assistance of any attorney and he
30 may represent you in all phases of the investigation
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1 of which this civil investigative demand is a part."
2 (iii) No such demand shall:
3 (A) contain any requirement which would be held
4 to be unreasonable if contained in a subpoena duces
5 tecum issued by any court in connection with a grand
6 jury investigation of such alleged violation; or
7 (B) require the production of any documentary
8 evidence which would be privileged from disclosure if
9 demanded by a subpoena duces tecum issued by any
10 court in connection with a grand jury investigation
11 of such alleged violation.
12 (iv) Service of any such demand or any petition
13 filed under this paragraph shall be made in the manner
14 prescribed by the Pennsylvania Rules of Civil Procedure
15 for service of writs and complaints.
16 (v) A verified return by the individual serving any
17 such demand or petition setting forth the manner of such
18 service shall be prima facie proof of such service. In
19 the case of service by registered or certified mail, such
20 return shall be accompanied by the return post office
21 receipt of delivery of such demand.
22 (vi) (A) Any party upon whom any demand issued
23 under this subsection has been duly served shall make
24 such material available for inspection and copying or
25 reproduction to the investigator designated therein
26 at the principal place of business of such party, or
27 at such other place as such investigator and such
28 party thereafter may agree or as the court may direct
29 pursuant to this paragraph, on the return date
30 specified in such demand. Such party may upon
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1 agreement of the investigator substitute copies of
2 all or any part of such material for the originals
3 thereof.
4 (B) The investigator to whom any documentary
5 material is so delivered shall take physical
6 possession thereof, and shall be responsible for the
7 use made thereof and for its return pursuant to this
8 paragraph. The investigator may cause the preparation
9 of such copies of such documentary material as may be
10 required for official use. While in the possession of
11 the investigator, no material so produced shall be
12 available for examination, without the consent of the
13 party who produced such material, by any individual
14 other than the Attorney General or the investigator.
15 Under such reasonable terms and conditions as the
16 Attorney General shall prescribe, documentary
17 material while in the possession of the investigator
18 shall be available for examination by the party who
19 produced such material or any duly authorized
20 representatives of such party.
21 (C) Upon completion of the investigation for
22 which any documentary material was produced under
23 this paragraph and any case or proceeding arising
24 from such investigation, the investigator shall
25 return to the party who produced such material all
26 such material other than copies thereof made pursuant
27 to this paragraph which have not passed into the
28 control of any court or grand jury through
29 introduction into the record of such case or
30 proceeding.
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1 (D) When any documentary material has been
2 produced by any party under this paragraph for use in
3 any investigation, and no case or proceeding arising
4 therefrom has been instituted within a reasonable
5 time after completion of the examination and analysis
6 of all evidence assembled in the course of such
7 investigation, such party shall be entitled, upon
8 written demand made upon the Attorney General, to the
9 return of all documentary material, other than copies
10 thereof made pursuant to this paragraph, so produced
11 by such party.
12 (vii) Whenever any person or enterprise fails to
13 comply with any civil investigative demand duly served
14 upon him under this paragraph or whenever satisfactory
15 copying or reproduction of any such material cannot be
16 done and such party refuses to surrender such material,
17 the Attorney General may file, in the court of common
18 pleas for any county in which such party resides or
19 transacts business, and serve upon such party a petition
20 for an order of such court for the enforcement of this
21 paragraph, except that if such person transacts business
22 in more than one county such petition shall be filed in
23 the county in which party maintains the party's principal
24 place of business.
25 (viii) Within 20 days after the service of any such
26 demand upon any person or enterprise, or at any time
27 before the return date specified in the demand, whichever
28 period is shorter, such party may file, in the court of
29 common pleas of the county within which such party
30 resides or transacts business, and serve upon the
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1 Attorney General a petition for an order of such court
2 modifying or setting aside such demand. The time allowed
3 for compliance with the demand in whole or in part as
4 deemed proper and ordered by the court shall not run
5 during the pendency of such petition in the court. Such
6 petition shall specify each ground upon which the
7 petitioner relies in seeking such relief, and may be
8 based upon any failure of such demand to comply with the
9 provisions of this paragraph or upon any constitutional
10 or other legal right or privilege of such party.
11 (ix) At any time during which the Attorney General
12 is in custody or control of any documentary material
13 delivered by any party in compliance with any such
14 demand, such party may file, in the court of common pleas
15 of the county within which such documentary material was
16 delivered, and serve upon the Attorney General a petition
17 for an order of such court requiring the performance of
18 any duty imposed by this paragraph.
19 (x) Whenever any petition is filed in any court of
20 common pleas under this paragraph, such court shall have
21 jurisdiction to hear and determine the matter so
22 presented, and, after a hearing at which all parties are
23 represented, to enter such order or orders as may be
24 required to carry into effect the provisions of this
25 paragraph.
26 (3) Whenever any individual refuses, on the basis of his
27 privilege against self-incrimination, to comply with a civil
28 investigative demand issued pursuant to paragraph (2), the
29 Attorney General may invoke the provisions of 42 Pa.C.S. §
30 5947 (relating to immunity of witnesses).
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1 (I) EXCLUSIVE JURISDICTION.--COMMONWEALTH COURT SHALL HAVE <--
2 EXCLUSIVE JURISDICTION FOR ALL CLAIMS ARISING UNDER THIS ACT.
3 Section 303. False claims procedure.
4 (a) Statute of limitations.--A civil action under section
5 302 may not be brought more than ten years after the date on
6 which the violation of section 301 was committed.
7 (b) Burden of proof.--In any action brought under section
8 302, the Commonwealth or the qui tam plaintiff shall be required
9 to prove all essential elements of the cause of action,
10 including damages, by a preponderance of the evidence.
11 (c) Estoppel.--Notwithstanding any other provision of law, a
12 final judgment rendered in favor of the Commonwealth in a
13 criminal proceeding charging false statements or fraud, whether
14 upon a verdict after trial or upon a plea of guilty or nolo
15 contendere, shall estop the defendant from denying the essential
16 elements of the offense in any action which involves the same
17 transaction as in the criminal proceeding and which is brought
18 under section 302(a) or (b).
19 Section 304. Remedies under other laws; severability of
20 provisions; liberality of legislative
21 construction; adoption of legislative history.
22 (a) Remedies under other laws.--The provisions of this act
23 are not exclusive and the remedies provided for in this act
24 shall be in addition to any other remedies provided for in any
25 other law or available under common law.
26 (b) Liberality of legislative construction and adoption of
27 legislative history.--This chapter shall be liberally construed
28 and applied to promote the public interest. This chapter also
29 adopts the congressional intent behind the Federal False Claims
30 Act (Public Law 97-258, 31 U.S.C. §§ 3729-3733), including the
20080H2509B3932 - 20 -
1 legislative history underlying the 1986 amendments to the
2 Federal False Claims Act.
3 Section 305. Regulations.
4 (a) General rule.--The Attorney General shall have the power
5 and authority to promulgate rules and regulations which may be
6 necessary to carry out the purposes set forth in this chapter.
7 (b) Guidelines.--In order to facilitate the speedy
8 implementation of this chapter, the Attorney General shall have
9 the power and authority to promulgate, adopt and use guidelines
10 which shall be published in the Pennsylvania Bulletin. The
11 guidelines shall not be subject to review under section 205 of
12 the act of July 31, 1968 (P.L.769, No.240), referred to as the
13 Commonwealth Documents Law, sections 204(b) and 301(10) of the
14 act of October 15, 1980 (P.L.950, No.164), known as the
15 Commonwealth Attorneys Act, or the act of June 25, 1982
16 (P.L.633, No.181), known as the Regulatory Review Act. The
17 guidelines shall be effective for a period of not more than two
18 years from the effective date of this chapter. After the
19 expiration of the two-year period, the guidelines, with such
20 changes as the Attorney General deems appropriate, shall be
21 promulgated as regulations according to law.
22 CHAPTER 21
23 MISCELLANEOUS PROVISIONS
24 Section 2101. Effective date.
25 This act shall take effect in 60 days.
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