SB 115 — An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in general powers and duties of the Department of Public Welfare, further providing for personal care home and assisted living residence administrators; providing for liability for false claims, for adoption of Congressional intent of the Federal False Claims Act, for damages, costs and civil penalties, for powers of Attorney General, for qui tam actions and for civil investigative demands; and establishing the Fraud Prevention and Recovery Account.

SCOPE OF ARTICLE.

THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER PREVENTION AGAINST FRAUD ACT.

SECTION 1402-E.

DECLARATION OF POLICY.

THE GENERAL ASSEMBLY DECLARES THAT THIS ARTICLE ADOPTS THE INTENT OF CONGRESS IN ENACTING THE FEDERAL FALSE CLAIMS ACT (PUBLIC LAW 97-258, 31 U.S.C.

§ 3729 ET SEQ.) ON SEPTEMBER 13, 1982, INCLUDING THE AMENDMENTS ENACTED OCTOBER 27, 1986 (PUBLIC LAW 99-562, 100 STAT.

3153).

20250SB0115PN2016 - 5 - SECTION 1403-E.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CLAIM." AS FOLLOWS:

(1) A REQUEST OR DEMAND FOR MONEY OR PROPERTY, WHETHER UNDER CONTRACT OR OTHERWISE, THAT IS MADE FOR PAYMENT OR REIMBURSEMENT UNDER THE MEDICAL ASSISTANCE PROGRAM, REGARDLESS OF WHETHER THE COMMONWEALTH HAS TITLE TO THE MONEY OR PROPERTY, THAT IS PRESENTED, SUBMITTED OR OTHERWISE MADE TO ANY OF THE FOLLOWING:

(I) AN EMPLOYEE, OFFICER OR AGENT OF THE COMMONWEALTH.

(II) A CONTRACTOR, GRANTEE OR OTHER RECIPIENT, IF ANY PORTION OF THE MONEY OR PROPERTY WILL BE SPENT OR USED ON THE COMMONWEALTH'S BEHALF OR TO ADVANCE THE MEDICAL ASSISTANCE PROGRAM, AND IF THE COMMONWEALTH:

(A) PROVIDES OR HAS PROVIDED ANY PORTION OF THE MONEY OR PROPERTY REQUESTED OR DEMANDED;

OR (B) WILL REIMBURSE THE CONTRACTOR, GRANTEE OR OTHER RECIPIENT FOR ANY PORTION OF THE MONEY OR PROPERTY THAT IS REQUESTED OR DEMANDED.

(2) THE TERM DOES NOT INCLUDE A REQUEST OR DEMAND MADE UNDER ANY PROGRAM OTHER THAN THE MEDICAL ASSISTANCE PROGRAM.

(3) THE TERM DOES NOT INCLUDE REQUESTS OR DEMANDS FOR MONEY OR PROPERTY THAT THE COMMONWEALTH HAS PAID TO AN INDIVIDUAL AS COMPENSATION FOR EMPLOYMENT BY THE COMMONWEALTH OR AS AN INCOME SUBSIDY WITH NO RESTRICTIONS ON THE INDIVIDUAL'S USE OF THE MONEY OR PROPERTY.

(4) THE TERM DOES NOT INCLUDE A FILING WITH A 20250SB0115PN2016 - 6 - COMMONWEALTH AGENCY PURSUANT TO THE COMMONWEALTH'S INSURANCE LAWS UNLESS THE FILING IS MADE TO OBTAIN PAYMENT OR REIMBURSEMENT OR TO AVOID OR REDUCE AN OBLIGATION TO PAY OR REPAY MONEY OR PROPERTY TO THE COMMONWEALTH.

"KNOWING" AND "KNOWINGLY." AS FOLLOWS:

(1) WHENEVER A PERSON, WITH RESPECT TO INFORMATION, DOES ANY OF THE FOLLOWING:

(I) HAS ACTUAL KNOWLEDGE OF THE INFORMATION.

(II) ACTS IN DELIBERATE IGNORANCE OF THE TRUTH OR FALSITY OF THE INFORMATION.

(III) ACTS IN RECKLESS DISREGARD OF THE TRUTH OR FALSITY OF THE INFORMATION.

(2) PROOF OF SPECIFIC INTENT TO DEFRAUD IS NOT REQUIRED.

"LEGAL CLAIM." A CLAIM FOR RELIEF AT LAW OR EQUITY, WHETHER CONTEMPLATED OR ASSERTED, INCLUDING ANY CLAIM, DEMAND, ACCOUNT, NOTE OR ANY OTHER CAUSE OF ACTION OR LIABILITY.

"MATERIAL." HAVING 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, 20250SB0115PN2016 - 7 - INCLUDING THE FOLLOWING:

(1) USE IN CONNECTION WITH INTERNAL MEMORANDA AND REPORTS.

(2) COMMUNICATIONS BETWEEN THE OFFICE OF ATTORNEY GENERAL AND A FEDERAL, STATE OR LOCAL GOVERNMENT AGENCY OR A CONTRACTOR OF A FEDERAL, STATE OR LOCAL GOVERNMENT AGENCY, UNDERTAKEN IN FURTHERANCE OF AN INVESTIGATION OR PROSECUTION OF AN ACTION OR CASE.

(3) INTERVIEWS OF A QUI TAM PLAINTIFF OR OTHER WITNESS.

(4) ORAL EXAMINATIONS.

(5) DEPOSITIONS.

(6) PREPARATION FOR AND RESPONSE TO CIVIL DISCOVERY REQUESTS.

(7) INTRODUCTION INTO THE RECORD OF AN ACTION, CASE OR PROCEEDING.

(8) APPLICATIONS, MOTIONS, MEMORANDA AND BRIEFS SUBMITTED TO A COURT OR OTHER TRIBUNAL.

(9) COMMUNICATIONS WITH INVESTIGATORS, AUDITORS, CONSULTANTS AND EXPERTS, THE COUNSEL OF OTHER PARTIES, ARBITRATORS AND MEDIATORS, CONCERNING AN INVESTIGATION, ACTION, CASE OR PROCEEDING.

"ORIGINAL SOURCE." AN INDIVIDUAL WHO:

(1) PRIOR TO A PUBLIC DISCLOSURE UNDER SECTION 1412-E(F) (2), HAS VOLUNTARILY DISCLOSED TO THE COMMONWEALTH THE INFORMATION ON WHICH THE ALLEGATIONS OR TRANSACTIONS IN A CLAIM ARE BASED;

OR (2) HAS KNOWLEDGE THAT IS INDEPENDENT OF AND MATERIALLY ADDS TO THE PUBLICLY DISCLOSED ALLEGATIONS OR TRANSACTIONS AND WHO HAS VOLUNTARILY PROVIDED THE INFORMATION TO THE COMMONWEALTH BEFORE FILING AN ACTION UNDER SECTION 1412-E(B).

20250SB0115PN2016 - 8 - "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 1412-E(B).

"STATE." IN REFERENCE TO A JURISDICTION, THE TERM INCLUDES THE DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, THE VIRGIN ISLANDS AND ALL PERMANENTLY INHABITED TERRITORIES OF THE UNITED STATES.

SUBARTICLE B FALSE CLAIMS SECTION 1411-E.

ACTS SUBJECTING PERSONS TO LIABILITY AND DAMAGES.

(A) LIABILITY.--EXCEPT AS PROVIDED IN SUBSECTION (B), A PERSON SHALL BE LIABLE TO THE COMMONWEALTH FOR THREE TIMES THE AMOUNT OF DAMAGES THAT THE COMMONWEALTH SUSTAINS BECAUSE OF THAT PERSON, PLUS A CIVIL PENALTY IN AN AMOUNT DETERMINED UNDER SUBSECTION (D), FOR EACH VIOLATION, IF THE PERSON COMMITS ANY OF THE FOLLOWING ACTS:

(1) KNOWINGLY PRESENTS OR CAUSES TO BE PRESENTED A FALSE OR FRAUDULENT CLAIM FOR PAYMENT OR APPROVAL.

(2) KNOWINGLY MAKES, USES OR CAUSES TO BE MADE OR USED, A FALSE RECORD OR STATEMENT MATERIAL TO A FALSE OR FRAUDULENT CLAIM.

(3) HAS POSSESSION, CUSTODY OR CONTROL OF PROPERTY OR MONEY USED OR TO BE USED BY THE COMMONWEALTH AND KNOWINGLY DELIVERS OR CAUSES TO BE DELIVERED LESS THAN ALL OF THE MONEY OR PROPERTY.

(4) IS AUTHORIZED TO MAKE OR DELIVER A DOCUMENT CERTIFYING RECEIPT OF PROPERTY USED OR TO BE USED BY THE 20250SB0115PN2016 - 9 - 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), (2), (3), (4), (5), (6), (7) OR (8).

(B) DAMAGES LIMITATION.--A COURT MAY ASSESS NOT LESS THAN TWO TIMES THE AMOUNT OF DAMAGES THAT THE COMMONWEALTH SUSTAINS FROM A VIOLATION OF SUBSECTION (A) IF THE COURT FINDS ALL OF THE FOLLOWING:

(1) THE PERSON COMMITTING THE VIOLATION FURNISHED THE COMMONWEALTH OFFICIALS WHO ARE RESPONSIBLE FOR INVESTIGATING FALSE CLAIMS VIOLATIONS WITH ALL INFORMATION KNOWN TO THAT PERSON ABOUT THE VIOLATION WITHIN 30 DAYS AFTER THE DATE ON 20250SB0115PN2016 - 10 - 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 UNDER THIS ARTICLE WITH RESPECT TO THE VIOLATION, AND THE PERSON DID NOT HAVE ACTUAL KNOWLEDGE OF THE EXISTENCE OF AN INVESTIGATION INTO THE VIOLATION.

(C) COMMONWEALTH COSTS.--A PERSON WHO IS LIABLE FOR DAMAGES OR PENALTIES UNDER SUBSECTION (A) SHALL ALSO BE LIABLE TO THE COMMONWEALTH FOR THE REASONABLE COSTS OF INVESTIGATING AND PROSECUTING VIOLATIONS OF SUBSECTION (A), INCLUDING REASONABLE COSTS TO THE OFFICE OF ATTORNEY GENERAL.

(D) CIVIL PENALTIES AND ADJUSTMENTS.--THE CIVIL PENALTIES PAYABLE UNDER SUBSECTION (A) SHALL BE EQUAL TO THE CIVIL PENALTY LIMITS PROVIDED UNDER 31 U.S.C.

§ 3729(A)(1) (RELATING TO FALSE CLAIMS), AS ADJUSTED BY THE FEDERAL CIVIL PENALTIES INFLATION ADJUSTMENT ACT OF 1990 (PUBLIC LAW 101-410, 28 U.S.C.

§ 2461 NOTE).

(E) EXEMPTION FROM DISCLOSURE.--THE OFFICE OF ATTORNEY GENERAL SHALL BE EXEMPT FROM DISCLOSING UNDER THE ACT OF FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW, INFORMATION THAT IS FURNISHED UNDER SUBSECTION (B) OR ACCESSED OR SHARED UNDER SECTION 1414-E(A).

SECTION 1412-E.

ATTORNEY GENERAL INVESTIGATIONS AND PROSECUTIONS AND CIVIL ACTIONS.

(A) RESPONSIBILITIES.--THE ATTORNEY GENERAL SHALL REPRESENT THE COMMONWEALTH WITH RESPECT TO ALL MATTERS ARISING UNDER THIS ARTICLE AND IS AUTHORIZED TO INVESTIGATE VIOLATIONS OF SECTION 20250SB0115PN2016 - 11 - 1411-E.

IF THE ATTORNEY GENERAL FINDS THAT A PERSON HAS VIOLATED OR IS VIOLATING SECTION 1411-E, THE ATTORNEY GENERAL MAY BRING A CIVIL ACTION UNDER THIS SECTION AGAINST THAT PERSON FOR VIOLATING SECTION 1411-E.

(B) ACTION BY QUI TAM PLAINTIFF.-- (1) A QUI TAM PLAINTIFF MAY BRING A CIVIL ACTION FOR A VIOLATION OF SECTION 1411-E FOR THE QUI TAM PLAINTIFF AND FOR THE COMMONWEALTH IN THE NAME OF THE COMMONWEALTH.

ONCE FILED, THE ACTION MAY BE DISMISSED ONLY IF THE COURT AND THE ATTORNEY GENERAL GIVE WRITTEN CONSENT TO THE DISMISSAL AND THEIR REASONS FOR CONSENTING.

(2) A COPY OF THE COMPLAINT AND WRITTEN DISCLOSURE OF SUBSTANTIALLY ALL MATERIAL EVIDENCE AND INFORMATION THAT THE QUI TAM PLAINTIFF POSSESSES SHALL BE SERVED PROMPTLY ON THE ATTORNEY GENERAL AS PROVIDED FOR IN THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR APPLICABLE COURT RULE.

THE COMPLAINT SHALL BE FILED IN CAMERA AND SHALL REMAIN UNDER SEAL FOR AT LEAST 60 DAYS AND SHALL NOT BE SERVED ON THE DEFENDANT UNTIL THE COURT ORDERS THE SERVICE.

THE COMMONWEALTH MAY ELECT TO INTERVENE AND PROCEED WITH THE ACTION WITHIN 60 DAYS AFTER IT RECEIVES THE COMPLAINT AND THE MATERIAL EVIDENCE AND INFORMATION.

(3) UPON MOTION OF THE COMMONWEALTH, THE COURT, FOR GOOD CAUSE SHOWN, SHALL EXTEND THE TIME DURING WHICH THE COMPLAINT REMAINS SEALED UNDER PARAGRAPH (2).

THE MOTION MAY BE SUPPORTED BY AFFIDAVITS OR OTHER SUBMISSIONS IN CAMERA.

THE DEFENDANT SHALL NOT BE REQUIRED TO RESPOND TO A COMPLAINT FILED UNDER THIS SECTION UNTIL THE COMPLAINT IS UNSEALED AND SERVED UPON THE DEFENDANT UNDER THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

20250SB0115PN2016 - 12 - (4) BEFORE THE EXPIRATION OF THE 60-DAY PERIOD OR ANY EXTENSIONS OBTAINED UNDER PARAGRAPH (3), THE COMMONWEALTH SHALL DO EITHER OF THE FOLLOWING:

(I) PROCEED WITH THE ACTION, IN WHICH CASE THE ACTION SHALL BE CONDUCTED BY THE COMMONWEALTH;

OR (II) NOTIFY THE COURT THAT THE COMMONWEALTH DECLINES TO TAKE OVER THE ACTION, IN WHICH CASE THE QUI TAM PLAINTIFF SHALL HAVE THE RIGHT TO CONDUCT THE ACTION.

(C) INTERVENTION RESTRICTED TO COMMONWEALTH.--WHEN A QUI TAM PLAINTIFF BRINGS AN ACTION UNDER SUBSECTION (B), ONLY THE COMMONWEALTH MAY INTERVENE OR BRING A RELATED ACTION BASED ON THE FACTS UNDERLYING THE PENDING ACTION.

(D) RIGHTS OF THE PARTIES TO QUI TAM ACTIONS.-- (1) IF THE COMMONWEALTH PROCEEDS WITH AN ACTION UNDER SUBSECTION (B), IT SHALL HAVE THE PRIMARY RESPONSIBILITY FOR PROSECUTING THE ACTION AND SHALL NOT BE BOUND BY AN ACT OF THE QUI TAM PLAINTIFF.

THE QUI TAM PLAINTIFF SHALL HAVE THE RIGHT TO CONTINUE AS A PARTY TO THE ACTION, SUBJECT TO THE LIMITATIONS SPECIFIED IN PARAGRAPH (2).

(2) THE FOLLOWING SHALL APPLY:

(I) THE COMMONWEALTH MAY MOVE TO DISMISS THE ACTION DESPITE THE QUI TAM PLAINTIFF'S OBJECTIONS, IF THE COMMONWEALTH NOTIFIES THE QUI TAM PLAINTIFF OF THE FILING.

THE COURT MAY DISMISS THE ACTION IF THE COURT HAS PROVIDED THE QUI TAM PLAINTIFF WITH AN OPPORTUNITY TO OPPOSE THE MOTION AT A HEARING.

(II) THE COMMONWEALTH MAY SETTLE THE ACTION WITH THE DEFENDANT DESPITE THE QUI TAM PLAINTIFF'S OBJECTIONS IF THE COURT DETERMINES, AFTER A HEARING, THAT THE PROPOSED SETTLEMENT IS FAIR, ADEQUATE AND REASONABLE UNDER ALL THE 20250SB0115PN2016 - 13 - CIRCUMSTANCES.

UPON A SHOWING OF GOOD CAUSE, THE HEARING MAY BE HELD IN CAMERA.

UPON THE COMMONWEALTH'S MOTION, THE COURT, FOR GOOD CAUSE SHOWN, SHALL ORDER A PARTIAL LIFTING OF THE SEAL TO FACILITATE THE INVESTIGATIVE PROCESS OR SETTLEMENT.

(III) UPON THE COMMONWEALTH'S SHOWING THAT THE QUI TAM PLAINTIFF'S UNRESTRICTED PARTICIPATION DURING THE COURSE OF THE ACTION WOULD INTERFERE WITH OR UNDULY DELAY THE COMMONWEALTH'S PROSECUTION OF THE CASE OR WOULD BE REPETITIOUS, IRRELEVANT OR FOR PURPOSES OF HARASSMENT, THE COURT MAY, IN ITS DISCRETION, IMPOSE LIMITATIONS ON THE QUI TAM PLAINTIFF'S PARTICIPATION BY:

(A) LIMITING THE NUMBER OF WITNESSES THE QUI TAM PLAINTIFF MAY CALL;

(B) LIMITING THE LENGTH OF WITNESS TESTIMONY;

(C) LIMITING THE QUI TAM PLAINTIFF'S CROSS- EXAMINATION OF WITNESSES;

OR (D) OTHERWISE LIMITING THE QUI TAM PLAINTIFF'S PARTICIPATION IN THE ACTION.

(IV) UPON THE DEFENDANT'S SHOWING THAT THE QUI TAM PLAINTIFF'S UNRESTRICTED PARTICIPATION IN THE ACTION WOULD BE FOR PURPOSES OF HARASSMENT OR WOULD CAUSE THE DEFENDANT UNDUE BURDEN OR UNNECESSARY EXPENSE, THE COURT MAY LIMIT THE QUI TAM PLAINTIFF'S PARTICIPATION IN THE ACTION.

(3) IF THE COMMONWEALTH ELECTS NOT TO PROCEED WITH THE ACTION, THE QUI TAM PLAINTIFF SHALL HAVE THE RIGHT TO CONDUCT THE ACTION.

UPON REQUEST AND AT ITS OWN EXPENSE, THE COMMONWEALTH SHALL BE SERVED WITH COPIES OF ALL PLEADINGS FILED IN THE ACTION AND SHALL BE SUPPLIED WITH COPIES OF ALL 20250SB0115PN2016 - 14 - DEPOSITION TRANSCRIPTS AND OTHER DISCOVERY PRODUCED IN THE ACTION.

WITHOUT LIMITING THE QUI TAM PLAINTIFF'S STATUS AND RIGHTS, THE COURT 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 THE COMMONWEALTH'S SHOWING, IN CAMERA, THAT CERTAIN ACTIONS OF DISCOVERY BY THE QUI TAM PLAINTIFF WOULD INTERFERE WITH THE COMMONWEALTH'S INVESTIGATION OR PROSECUTION OF A CRIMINAL OR CIVIL MATTER ARISING OUT OF THE SAME FACTS, THE COURT MAY STAY THE DISCOVERY FOR A PERIOD OF NOT MORE THAN 60 DAYS.

THE COURT MAY EXTEND THE 60-DAY PERIOD UPON THE COMMONWEALTH'S FURTHER SHOWING, IN CAMERA, THAT THE COMMONWEALTH HAS PURSUED THE CRIMINAL OR CIVIL INVESTIGATION OR PROCEEDINGS WITH REASONABLE DILIGENCE AND THAT THE DISCOVERY PROPOSED IN THE CIVIL ACTION WILL INTERFERE WITH THE ONGOING CRIMINAL OR CIVIL INVESTIGATIONS OR PROCEEDINGS.

(5) NOTWITHSTANDING SUBSECTION (B), THE COMMONWEALTH MAY ELECT TO PURSUE LEGAL CLAIMS THROUGH AN ALTERNATE REMEDY AVAILABLE TO THE COMMONWEALTH, INCLUDING AN ADMINISTRATIVE PROCEEDING TO DETERMINE A CIVIL MONEY PENALTY.

IF THE ALTERNATE REMEDY IS PURSUED IN ANOTHER PROCEEDING, THE QUI TAM PLAINTIFF SHALL HAVE THE SAME RIGHTS IN THE PROCEEDING AS IF THE ACTION HAD CONTINUED UNDER THIS SECTION.

A FINDING OF FACT OR CONCLUSION OF LAW MADE IN THE OTHER PROCEEDING THAT HAS BECOME FINAL SHALL BE CONCLUSIVE ON ALL PARTIES TO AN ACTION UNDER THIS SECTION.

A FINDING OR CONCLUSION IS FINAL IF IT HAS BEEN FINALLY DETERMINED ON APPEAL TO THE APPROPRIATE COURT OF THE COMMONWEALTH, IF THE TIME FOR FILING THE APPEAL REGARDING THE FINDING OR CONCLUSION HAS EXPIRED WITHOUT AN APPEAL HAVING BEEN FILED OR IF THE FINDING OR 20250SB0115PN2016 - 15 - CONCLUSION IS NOT SUBJECT TO JUDICIAL REVIEW.

(E) AWARD TO QUI TAM PLAINTIFF.-- (1) THE FOLLOWING SHALL APPLY:

(I) IF THE COMMONWEALTH PROCEEDS WITH AN ACTION BROUGHT BY A QUI TAM PLAINTIFF, THE QUI TAM PLAINTIFF SHALL, SUBJECT TO THE PROVISIONS OF THIS SUBSECTION, RECEIVE AN AWARD OF AT LEAST 15% BUT NOT MORE THAN 25% OF THE PROCEEDS OF THE ACTION OR SETTLEMENT OF THE LEGAL CLAIM, DEPENDING UPON THE EXTENT TO WHICH EITHER OR BOTH THE QUI TAM PLAINTIFF AND THE QUI TAM PLAINTIFF'S COUNSEL SUBSTANTIALLY CONTRIBUTED TO THE PROSECUTION OF THE ACTION.

(II) IF THE COURT FINDS THAT THE ACTION IS BASED PRIMARILY ON DISCLOSURES OF SPECIFIC INFORMATION, OTHER THAN INFORMATION PROVIDED BY THE QUI TAM PLAINTIFF, RELATING TO ALLEGATIONS OR TRANSACTIONS IN A CRIMINAL, CIVIL OR ADMINISTRATIVE HEARING TO WHICH THE COMMONWEALTH IS A PARTY, OR IN A FEDERAL, STATE OR LOCAL LEGISLATIVE OR OTHER GOVERNMENTAL HEARING, REPORT, AUDIT OR INVESTIGATION OR FROM THE NEWS MEDIA, THE COURT MAY AWARD A SUM IT CONSIDERS APPROPRIATE, BUT NOT MORE THAN 10% OF THE PROCEEDS OF THE ACTION OR SETTLEMENT, TAKING INTO ACCOUNT THE SIGNIFICANCE OF THE INFORMATION AND THE QUI TAM PLAINTIFF'S ROLE IN ADVANCING THE ACTION.

(2) IF THE COMMONWEALTH DOES NOT PROCEED WITH AN ACTION UNDER THIS SECTION, THE QUI TAM PLAINTIFF SHALL RECEIVE AN AWARD OF 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 FOR COLLECTING THE CIVIL PENALTY AND DAMAGES.

20250SB0115PN2016 - 16 - (3) WHETHER OR NOT THE COMMONWEALTH PROCEEDS WITH AN ACTION, IF THE COURT FINDS THAT THE QUI TAM PLAINTIFF PLANNED AND INITIATED THE VIOLATION OF SECTION 1411-E UPON WHICH THE ACTION WAS BROUGHT, THE FOLLOWING SHALL APPLY:

(I) SUBJECT TO SUBPARAGRAPH (II), THE COURT MAY, TO THE EXTENT THAT IT CONSIDERS APPROPRIATE, REDUCE THE SHARE OF THE PROCEEDS OF THE ACTION OR SETTLEMENT OF THE LEGAL CLAIM THAT THE QUI TAM PLAINTIFF WOULD OTHERWISE RECEIVE UNDER PARAGRAPH (1) OR (2), TAKING INTO ACCOUNT THE QUI TAM PLAINTIFF'S ROLE IN ADVANCING THE ACTION AND ANY RELEVANT CIRCUMSTANCES PERTAINING TO THE VIOLATION.

(II) IF THE QUI TAM PLAINTIFF IS CONVICTED OF CRIMINAL CONDUCT ARISING FROM THE QUI TAM PLAINTIFF'S ROLE IN THE VIOLATION, THE QUI TAM PLAINTIFF SHALL BE DISMISSED FROM THE CIVIL ACTION AND SHALL NOT RECEIVE A SHARE OF THE PROCEEDS OF THE ACTION.

THE DISMISSAL SHALL NOT PREJUDICE THE COMMONWEALTH'S RIGHT TO CONTINUE THE ACTION.

(4) AN AWARD TO A QUI TAM PLAINTIFF SHALL BE MADE FROM THE PROCEEDS OF THE ACTION OR SETTLEMENT OF THE LEGAL CLAIM.

THE QUI TAM PLAINTIFF ALSO SHALL RECEIVE AN AMOUNT FOR REASONABLE EXPENSES THAT THE COURT FINDS WERE NECESSARILY INCURRED, PLUS REASONABLE ATTORNEY FEES AND COSTS.

THE EXPENSES, FEES AND COSTS SHALL BE AWARDED AGAINST THE DEFENDANT.

(5) IF THE COMMONWEALTH DOES NOT PROCEED WITH THE ACTION AND THE QUI TAM PLAINTIFF CONDUCTS THE ACTION, THE COURT MAY AWARD TO THE DEFENDANT REASONABLE ATTORNEY FEES AND EXPENSES IF THE DEFENDANT PREVAILS IN THE ACTION AND THE COURT FINDS THAT THE QUI TAM PLAINTIFF'S LEGAL CLAIM WAS CLEARLY 20250SB0115PN2016 - 17 - FRIVOLOUS, CLEARLY VEXATIOUS OR BROUGHT PRIMARILY FOR PURPOSES OF HARASSMENT.

(F) CERTAIN ACTIONS BARRED.-- (1) A COURT SHALL NOT HAVE JURISDICTION OVER AN ACTION FILED UNDER SUBSECTION (B) AGAINST THE GOVERNOR, THE LIEUTENANT GOVERNOR, THE ATTORNEY GENERAL, THE AUDITOR GENERAL, THE TREASURER, A CABINET MEMBER, A DEPUTY SECRETARY, A MEMBER OF THE GENERAL ASSEMBLY OR A MEMBER OF THE JUDICIARY IF THE ACTION IS BASED ON EVIDENCE OR INFORMATION KNOWN TO THE COMMONWEALTH WHEN THE ACTION WAS BROUGHT.

(2) THE FOLLOWING SHALL APPLY:

(I) SUBJECT TO SUBPARAGRAPH (II), THE COURT SHALL DISMISS AN ACTION OR LEGAL CLAIM BROUGHT UNDER SUBSECTION (B) IF SUBSTANTIALLY THE SAME ALLEGATIONS OR TRANSACTIONS ALLEGED IN THE ACTION OR LEGAL CLAIM WERE PUBLICLY DISCLOSED IN:

(A) THE NEWS MEDIA;

(B) A CRIMINAL, CIVIL OR ADMINISTRATIVE HEARING IN WHICH THE COMMONWEALTH IS OR WAS A PARTY;

OR (C) A FEDERAL, STATE OR LOCAL LEGISLATIVE OR OTHER GOVERNMENTAL HEARING, REPORT, AUDIT OR INVESTIGATION.

(II) THE COURT MAY NOT DISMISS AN ACTION UNDER SUBPARAGRAPH (I) IF:

(A) THE ATTORNEY GENERAL OPPOSES DISMISSAL;

OR (B) THE QUI TAM PLAINTIFF IS AN ORIGINAL SOURCE OF THE INFORMATION THAT IS PUBLICLY DISCLOSED.

(3) A QUI TAM PLAINTIFF MAY NOT BRING AN ACTION UNDER THIS SECTION THAT IS BASED UPON ALLEGATIONS OR TRANSACTIONS THAT ARE THE SUBJECT OF A CIVIL SUIT OR AN ADMINISTRATIVE 20250SB0115PN2016 - 18 - 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 THAT A QUI TAM PLAINTIFF INCURS IN BRINGING AN ACTION UNDER THIS SECTION.

(H) COOPERATION BY AGENCIES.--COMMONWEALTH AGENCIES SHALL COOPERATE IN THE INVESTIGATION AND PROSECUTION OF FALSE CLAIMS UNDER THIS SECTION, WHETHER THE INVESTIGATION IS CONDUCTED OR SUIT IS BROUGHT BY THE ATTORNEY GENERAL OR BY A QUI TAM PLAINTIFF.

(I) NATURE OF ACTION.--AN ACTION UNDER THIS SECTION IS AN ACTION BROUGHT BY THE COMMONWEALTH, AS PROVIDED IN SECTION 204(C) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.

SECTION 1413-E.

CIVIL INVESTIGATIVE DEMANDS.

(A) ISSUANCE AND SERVICE.-- (1) IF THE ATTORNEY GENERAL HAS REASON TO BELIEVE THAT A PERSON MAY BE IN POSSESSION, CUSTODY OR CONTROL OF DOCUMENTARY MATERIAL OR INFORMATION RELEVANT TO A FALSE CLAIMS INVESTIGATION UNDER THIS ARTICLE, THE ATTORNEY GENERAL OR A DESIGNEE MAY ISSUE IN WRITING AND CAUSE TO BE SERVED UPON THE PERSON A CIVIL INVESTIGATIVE DEMAND REQUIRING THE PERSON TO:

(I) PRODUCE DOCUMENTARY MATERIAL FOR INSPECTION AND COPYING;

(II) ANSWER IN WRITING WRITTEN INTERROGATORIES WITH RESPECT TO DOCUMENTARY MATERIAL OR INFORMATION;

(III) GIVE ORAL TESTIMONY CONCERNING DOCUMENTARY MATERIAL OR INFORMATION;

OR (IV) FURNISH ANY COMBINATION OF MATERIALS, ANSWERS 20250SB0115PN2016 - 19 - OR TESTIMONY.

(2) IF A CIVIL INVESTIGATIVE DEMAND IS AN EXPRESS DEMAND FOR A PRODUCT OF DISCOVERY, THE ATTORNEY GENERAL OR A DESIGNEE SHALL:

(I) CAUSE TO BE SERVED IN ANY MANNER AUTHORIZED BY THIS SUBSECTION A COPY OF THE DEMAND UPON THE PERSON FROM WHOM OR WHICH THE DISCOVERY WAS OBTAINED;

AND (II) NOTIFY THE DEMAND ISSUEE OF THE DATE ON WHICH THE COPY WAS SERVED.

(B) CONTENTS AND DEADLINES.-- (1) A CIVIL INVESTIGATIVE DEMAND SHALL STATE THE NATURE OF THE CONDUCT CONSTITUTING THE ALLEGED VIOLATION OF THIS ARTICLE THAT IS UNDER INVESTIGATION AND THE APPLICABLE PROVISIONS OF THIS ARTICLE ALLEGED TO BE VIOLATED.

(2) IF THE CIVIL INVESTIGATIVE DEMAND IS FOR THE PRODUCTION OF DOCUMENTARY MATERIAL, THE DEMAND SHALL:

(I) DESCRIBE EACH CLASS OF DOCUMENTARY MATERIAL TO BE PRODUCED WITH DEFINITENESS AND CERTAINTY AS TO PERMIT THE MATERIAL TO BE FAIRLY IDENTIFIED;

(II) PRESCRIBE A RETURN DATE FOR EACH CLASS THAT WILL PROVIDE A REASONABLE TIME PERIOD WITHIN WHICH THE MATERIAL SO DEMANDED MAY BE ASSEMBLED AND MADE AVAILABLE FOR INSPECTION AND COPYING;

AND (III) IDENTIFY THE FALSE CLAIMS INVESTIGATOR TO WHOM THE MATERIAL SHALL BE AVAILABLE.

(3) IF THE CIVIL INVESTIGATIVE DEMAND IS FOR ANSWERS TO WRITTEN INTERROGATORIES, THE DEMAND SHALL:

(I) SET FORTH WITH SPECIFICITY THE WRITTEN INTERROGATORIES TO BE ANSWERED;

(II) PRESCRIBE DATES ON WHICH THE ANSWERS TO THE 20250SB0115PN2016 - 20 - WRITTEN INTERROGATORIES SHALL BE SUBMITTED;

AND (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;

AND (IV) DESCRIBE THE GENERAL PURPOSE FOR WHICH THE DEMAND IS BEING ISSUED AND GENERAL NATURE OF THE TESTIMONY, INCLUDING THE PRIMARY AREAS OF INQUIRY, THAT WILL BE TAKEN UNDER THE DEMAND.

(5) A CIVIL INVESTIGATIVE DEMAND SHALL CONTAIN THE FOLLOWING STATEMENT PRINTED AT THE BEGINNING OF THE DEMAND:

"YOU HAVE THE RIGHT TO SEEK THE ASSISTANCE OF AN ATTORNEY, WHO MAY REPRESENT YOU IN ALL PHASES OF THE INVESTIGATION OF WHICH THIS CIVIL INVESTIGATIVE DEMAND IS A PART." (6) A CIVIL INVESTIGATIVE DEMAND THAT IS AN EXPRESS DEMAND FOR A PRODUCT OF DISCOVERY SHALL NOT BE RETURNED OR RETURNABLE UNTIL 20 DAYS AFTER A COPY OF THE DEMAND HAS BEEN SERVED UPON THE PERSON FROM WHOM OR WHICH THE DISCOVERY WAS OBTAINED.

(7) THE DATE PRESCRIBED FOR COMMENCEMENT OF ORAL TESTIMONY UNDER A CIVIL INVESTIGATIVE DEMAND SHALL NOT BE 20250SB0115PN2016 - 21 - LESS THAN SEVEN DAYS AFTER THE DATE ON WHICH THE DEMAND IS SERVED, UNLESS THE ATTORNEY GENERAL OR A DESIGNEE DETERMINES THAT EXCEPTIONAL CIRCUMSTANCES EXIST AND WARRANT COMMENCING TESTIMONY WITHIN A LESSER TIME PERIOD.

(8) THE ATTORNEY GENERAL OR A DESIGNEE MAY NOT AUTHORIZE THE ISSUANCE OF MORE THAN ONE CIVIL INVESTIGATIVE DEMAND FOR THE SAME PERSON'S ORAL TESTIMONY UNLESS:

(I) THE PERSON REQUESTS OTHERWISE;

OR (II) THE ATTORNEY GENERAL OR A DESIGNEE NOTIFIES THE PERSON IN WRITING THAT AN ADDITIONAL DEMAND FOR ORAL TESTIMONY IS NECESSARY.

(C) PROTECTED MATERIAL OR INFORMATION.-- (1) A CIVIL INVESTIGATIVE DEMAND MAY NOT REQUIRE THE PRODUCTION OF DOCUMENTARY MATERIAL, THE SUBMISSION OF ANSWERS TO WRITTEN INTERROGATORIES OR THE GIVING OF ORAL TESTIMONY IF THE MATERIAL, ANSWERS OR TESTIMONY WOULD BE PROTECTED FROM DISCLOSURE UNDER THE STANDARDS APPLICABLE TO:

(I) SUBPOENAS OR SUBPOENAS DUCES TECUM ISSUED BY A COURT OF THIS COMMONWEALTH TO AID IN A GRAND JURY INVESTIGATION;

OR (II) DISCOVERY UNDER THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE, TO THE EXTENT THAT THE APPLICATION OF THE STANDARDS TO A DEMAND IS APPROPRIATE AND CONSISTENT WITH THE PROVISIONS AND PURPOSES OF THIS SECTION.

(2) THE FOLLOWING SHALL APPLY:

(I) EXCEPT WHERE A STATUTE EXPLICITLY PRECLUDES THE SUPERSEDING EFFECT IMPOSED BY THIS PARAGRAPH, A CIVIL INVESTIGATIVE DEMAND THAT IS AN EXPRESS DEMAND FOR A PRODUCT OF DISCOVERY SUPERSEDES AN INCONSISTENT ORDER, 20250SB0115PN2016 - 22 - RULE OR PROVISION OF LAW, OTHER THAN IN THIS SECTION, THAT PREVENTS OR RESTRAINS DISCLOSURE OF THE PRODUCT OF DISCOVERY TO ANY PERSON.

(II) A PERSON'S DISCLOSURE OF A PRODUCT OF DISCOVERY UNDER AN EXPRESS DEMAND DOES NOT CONSTITUTE A WAIVER OF ANY RIGHT OR PRIVILEGE TO RESIST DISCOVERY OF TRIAL PREPARATION MATERIALS THAT THE PERSON MAY BE ENTITLED TO INVOKE.

(D) SERVICE AND JURISDICTION.--EXCEPT AS OTHERWISE PROVIDED, THE FOLLOWING APPLIES TO CIVIL INVESTIGATIVE DEMANDS ISSUED UNDER THIS SECTION AND PETITIONS FILED UNDER SUBSECTION (J):

(1) A CIVIL INVESTIGATIVE DEMAND MAY BE SERVED BY A FALSE CLAIMS INVESTIGATOR, A LAW ENFORCEMENT OFFICER OR ANOTHER INDIVIDUAL AUTHORIZED BY LAW TO SERVE PROCESS IN THE JURISDICTION WHERE THE DEMAND IS SERVED.

A PETITION MAY BE SERVED BY ANY PERSON AUTHORIZED TO SERVE PROCESS UNDER THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

(2) A CIVIL INVESTIGATIVE DEMAND OR PETITION MAY BE SERVED UPON A PERSON CONSISTENT WITH AND IN THE MANNER PRESCRIBED BY 42 PA.C.S.

CH.

53 (RELATING TO BASES OF JURISDICTION AND INTERSTATE AND INTERNATIONAL PROCEDURE) AND THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE, FOR PERSONAL SERVICE INSIDE OR OUTSIDE THIS COMMONWEALTH.

TO THE EXTENT THAT THE COURTS OF THE COMMONWEALTH CAN ASSERT JURISDICTION OVER A PERSON OUTSIDE THIS COMMONWEALTH, A COURT WITH JURISDICTION OVER AN ACTION FILED UNDER THIS ARTICLE SHALL HAVE THE SAME JURISDICTION TO TAKE ACTION RESPECTING THE PERSON'S COMPLIANCE WITH THIS SECTION THAT IT WOULD HAVE IF THE PERSON RESIDED WITHIN THE 20250SB0115PN2016 - 23 - COURT'S JURISDICTION.

(3) THE FOLLOWING SHALL APPLY:

(I) A CIVIL INVESTIGATIVE DEMAND OR PETITION MAY BE SERVED UPON A LEGAL ENTITY BY:

(A) DELIVERING AN EXECUTED COPY OF THE DEMAND OR PETITION TO A PARTNER, EXECUTIVE OFFICER, MANAGING AGENT OR GENERAL AGENT OF THE LEGAL ENTITY, OR TO AN EMPLOYEE DESIGNATED OR AGENT AUTHORIZED BY APPOINTMENT OR LAW TO RECEIVE SERVICE OF PROCESS ON BEHALF OF THE LEGAL ENTITY;

(B) DELIVERING AN EXECUTED COPY OF THE DEMAND OR PETITION TO THE LEGAL ENTITY'S PRINCIPAL OFFICE OR PLACE OF BUSINESS;

(C) DEPOSITING AN EXECUTED COPY OF THE DEMAND OR PETITION IN THE UNITED STATES MAIL BY REGISTERED OR CERTIFIED MAIL WITH A RETURN RECEIPT REQUESTED, ADDRESSED TO THE LEGAL ENTITY AT ITS PRINCIPAL OFFICE OR PLACE OF BUSINESS;

OR (D) ANY OTHER METHOD PROVIDED BY THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

(II) A CIVIL INVESTIGATIVE DEMAND OR PETITION MAY BE SERVED UPON A NATURAL PERSON BY:

(A) DELIVERING AN EXECUTED COPY OF THE DEMAND OR PETITION TO THE PERSON;

(B) DEPOSITING AN EXECUTED COPY OF THE DEMAND OR PETITION IN THE UNITED STATES MAIL BY REGISTERED OR CERTIFIED MAIL WITH A RETURN RECEIPT REQUESTED, ADDRESSED TO THE PERSON AT THE PERSON'S RESIDENCE OR PRINCIPAL OFFICE OR PLACE OF BUSINESS;

OR 20250SB0115PN2016 - 24 - (C) ANY OTHER METHOD PROVIDED BY THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

(4) A VERIFIED RETURN BY THE INDIVIDUAL SERVING A CIVIL INVESTIGATIVE DEMAND OR A PETITION, SETTING FORTH THE MANNER OF SERVICE, SHALL BE PROOF OF SERVICE.

IN THE CASE OF SERVICE BY REGISTERED OR CERTIFIED MAIL, THE RETURN POST OFFICE RECEIPT OF THE DEMAND OR PETITION'S DELIVERY SHALL ACCOMPANY THE VERIFIED RETURN.

(E) DOCUMENTARY MATERIAL.-- (1) THE FOLLOWING SHALL APPLY REGARDING A VERIFIED CERTIFICATE:

(I) THE PRODUCTION OF DOCUMENTARY MATERIAL SHALL BE MADE UNDER A WRITTEN AND VERIFIED CERTIFICATE, IN THE FORM A CIVIL INVESTIGATIVE DEMAND DESIGNATES, BY THE FOLLOWING INDIVIDUALS:

(A) IF THE DEMAND ISSUEE IS A NATURAL PERSON, BY THE DEMAND ISSUEE;

AND (B) IF THE DEMAND ISSUEE IS NOT A NATURAL PERSON, BY AN INDIVIDUAL WHO HAS KNOWLEDGE OF FACTS AND CIRCUMSTANCES RELATING TO THE PRODUCTION AND IS AUTHORIZED TO ACT ON THE DEMAND ISSUEE'S BEHALF.

(II) THE CERTIFICATE SHALL STATE THAT ALL THE DOCUMENTARY MATERIAL REQUIRED BY THE DEMAND AND IN THE DEMAND ISSUEE'S POSSESSION, CUSTODY OR CONTROL HAS BEEN PRODUCED AND MADE AVAILABLE TO THE FALSE CLAIMS INVESTIGATOR IDENTIFIED IN THE DEMAND.

(2) THE FOLLOWING SHALL APPLY TO PRODUCTION:

(I) A DEMAND ISSUEE SHALL MAKE DEMANDED MATERIAL AVAILABLE FOR INSPECTION AND COPYING TO THE FALSE CLAIMS 20250SB0115PN2016 - 25 - INVESTIGATOR IDENTIFIED IN THE DEMAND:

(A) AT THE DEMAND ISSUEE'S PRINCIPAL PLACE OF BUSINESS;

(B) AT ANOTHER PLACE AS THE FALSE CLAIMS INVESTIGATOR AND THE DEMAND ISSUEE THEREAFTER MAY AGREE AND PRESCRIBE IN WRITING;

OR (C) AS THE COURT MAY DIRECT UNDER THIS SECTION.

(II) THE DOCUMENTARY MATERIAL SHALL BE MADE AVAILABLE ON THE RETURN DATE SPECIFIED IN THE DEMAND OR ON A LATER DATE AS THE FALSE CLAIMS INVESTIGATOR MAY PRESCRIBE IN WRITING.

THE DEMAND ISSUEE MAY, UPON WRITTEN AGREEMENT WITH THE FALSE CLAIMS INVESTIGATOR, SUBSTITUTE COPIES FOR ORIGINALS OF ALL OR ANY PART OF THE MATERIAL.

(3) IF THE DEMAND ISSUEE OBJECTS TO THE PRODUCTION OF ANY PORTION OF THE REQUIRED DOCUMENTARY MATERIAL OR OTHERWISE WITHHOLDS ANY PORTION OF THE MATERIAL, THE DEMAND ISSUEE SHALL WITH PARTICULARITY STATE THE REASONS FOR THE OBJECTION OR WITHHOLDING AND IDENTIFY ALL WITHHELD MATERIAL.

(F) INTERROGATORIES.-- (1) EACH INTERROGATORY IN A CIVIL INVESTIGATIVE DEMAND SHALL BE ANSWERED SEPARATELY AND FULLY IN WRITING UNDER OATH AND SHALL BE SUBMITTED UNDER A VERIFIED CERTIFICATE, IN THE FORM THE DEMAND DESIGNATES, STATING THAT ALL INFORMATION REQUIRED BY THE DEMAND AND IN THE DEMAND ISSUEE'S POSSESSION, CUSTODY, CONTROL OR KNOWLEDGE HAS BEEN SUBMITTED BY THE FOLLOWING PERSONS:

(I) IF THE DEMAND ISSUEE IS A NATURAL PERSON, BY THE DEMAND ISSUEE;

AND (II) IF THE DEMAND ISSUEE IS NOT A NATURAL PERSON, BY THE INDIVIDUALS RESPONSIBLE FOR ANSWERING EACH 20250SB0115PN2016 - 26 - INTERROGATORY.

(2) IF THE DEMAND ISSUEE OBJECTS TO AN INTERROGATORY OR ANY PORTION THEREOF, OR OTHERWISE WITHHOLDS INFORMATION, THE DEMAND ISSUEE SHALL STATE WITH PARTICULARITY THE REASONS FOR THE OBJECTION OR WITHHOLDING AND IDENTIFY ALL WITHHELD INFORMATION.

(G) ORAL EXAMINATIONS.-- (1) THE FOLLOWING SHALL APPLY:

(I) THE EXAMINATION OF A PERSON UNDER A CIVIL INVESTIGATIVE DEMAND FOR ORAL TESTIMONY SHALL BE TAKEN BEFORE AN OFFICER AUTHORIZED TO ADMINISTER OATHS AND AFFIRMATIONS BY THE LAWS OF THIS COMMONWEALTH OR OF THE PLACE WHERE THE EXAMINATION IS HELD.

(II) THE OFFICER SHALL PUT THE WITNESS ON OATH OR AFFIRMATION AND, PERSONALLY OR BY SOMEONE ACTING UNDER THE OFFICER'S DIRECTION AND IN THE OFFICER'S PRESENCE, SHALL RECORD THE WITNESS'S TESTIMONY.

(III) THE TESTIMONY SHALL BE STENOGRAPHICALLY TRANSCRIBED.

(IV) WHEN THE TRANSCRIBING IS COMPLETE, THE OFFICER SHALL PROMPTLY TRANSMIT A COPY OF THE TRANSCRIPT TO THE CUSTODIAN.

(V) THIS SUBSECTION SHALL NOT PRECLUDE THE TAKING OF TESTIMONY BY ANY MEANS AUTHORIZED BY, AND IN A MANNER CONSISTENT WITH, THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

(2) THE FALSE CLAIMS INVESTIGATOR CONDUCTING THE EXAMINATION SHALL EXCLUDE FROM THE PLACE WHERE THE EXAMINATION IS HELD ALL PERSONS EXCEPT THE FOLLOWING:

(I) THE PERSON GIVING THE TESTIMONY;

20250SB0115PN2016 - 27 - (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;

AND (VII) ANY OTHER PERSON UPON WHICH THE PERSON GIVING THE TESTIMONY AND THE ATTORNEY FOR THE COMMONWEALTH AGREE.

(3) A PERSON'S ORAL TESTIMONY TAKEN UNDER A CIVIL INVESTIGATIVE DEMAND SHALL BE TAKEN IN THE COUNTY OR CITY WITHIN WHICH THE PERSON RESIDES, IS FOUND, OR TRANSACTS BUSINESS, OR IN A PLACE TO WHICH THE FALSE CLAIMS INVESTIGATOR AND THE PERSON OTHERWISE AGREE.

(4) THE FOLLOWING SHALL APPLY:

(I) WHEN THE TRANSCRIPT OF TESTIMONY IS COMPLETED, THE FALSE CLAIMS INVESTIGATOR OR THE OFFICER BEFORE WHOM THE TESTIMONY IS TAKEN SHALL AFFORD THE WITNESS, WHO MAY BE ACCOMPANIED BY COUNSEL, A REASONABLE OPPORTUNITY TO EXAMINE AND READ THE TRANSCRIPT, UNLESS THE WITNESS WAIVES THE READING AND EXAMINATION.

(II) THE OFFICER OR FALSE CLAIMS INVESTIGATOR SHALL ENTER AND IDENTIFY ON THE TRANSCRIPT ANY CHANGES IN FORM OR SUBSTANCE THAT THE WITNESS DESIRES TO MAKE WITH A STATEMENT OF THE REASONS THE WITNESS GIVES FOR MAKING THE CHANGES.

(III) THE WITNESS SHALL SIGN THE TRANSCRIPT AFTER THE CHANGES, IF ANY, ARE MADE, UNLESS THE WITNESS WAIVES 20250SB0115PN2016 - 28 - 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 IT AND STATE ON THE RECORD THE FACT OF THE WITNESS'S WAIVER, ILLNESS, ABSENCE OR REFUSAL TO SIGN, TOGETHER WITH THE REASONS, IF ANY, GIVEN FOR WHY THE WITNESS DID NOT SIGN THE TRANSCRIPT.

(IV) THE OFFICER BEFORE WHOM THE TESTIMONY IS TAKEN SHALL CERTIFY ON THE TRANSCRIPT THAT THE WITNESS WAS SWORN BY THE OFFICER AND THE TRANSCRIPT IS A TRUE RECORD OF THE WITNESS'S TESTIMONY, AND THE OFFICER SHALL PROMPTLY DELIVER THE TRANSCRIPT OR SEND THE TRANSCRIPT BY REGISTERED OR CERTIFIED MAIL TO THE CUSTODIAN.

(V) UPON RECEIVING PAYMENT OF REASONABLE CHARGES, THE FALSE CLAIMS INVESTIGATOR SHALL FURNISH A COPY OF THE TRANSCRIPT TO THE WITNESS ONLY, EXCEPT THAT THE ATTORNEY GENERAL OR A DESIGNEE MAY, FOR GOOD CAUSE, LIMIT THE WITNESSES TO INSPECTING THE OFFICIAL TRANSCRIPT.

(5) THE FOLLOWING SHALL APPLY:

(I) A PERSON COMPELLED TO APPEAR FOR ORAL TESTIMONY MAY BE ACCOMPANIED, REPRESENTED AND ADVISED BY COUNSEL.

COUNSEL MAY ADVISE THE PERSON IN CONFIDENCE WITH RESPECT TO ANY QUESTION ASKED OF THE PERSON.

(II) THE PERSON OR THE PERSON'S COUNSEL MAY OBJECT ON THE RECORD TO ANY QUESTION, IN WHOLE OR IN PART, AND SHALL BRIEFLY STATE FOR THE RECORD THE REASON FOR THE OBJECTION.

AN OBJECTION MAY BE MADE, RECEIVED AND ENTERED UPON THE RECORD WHEN IT IS ASSERTED THAT THE PERSON IS ENTITLED TO REFUSE TO ANSWER ON THE GROUNDS OF A 20250SB0115PN2016 - 29 - 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 THE PERSON REFUSES TO ANSWER A QUESTION, A PETITION MAY BE FILED WITH THE COURT UNDER THIS SECTION FOR AN ORDER COMPELLING THE PERSON TO ANSWER THE QUESTION.

(6) A PERSON APPEARING FOR ORAL TESTIMONY UNDER A CIVIL INVESTIGATIVE DEMAND SHALL BE ENTITLED TO THE SAME FEES AND ALLOWANCES THAT ARE PAID TO WITNESSES IN THE COURTS OF COMMON PLEAS.

(H) REFUSAL TO COMPLY ON SELF-INCRIMINATION PRIVILEGE GROUNDS.--THE ATTORNEY GENERAL MAY INVOKE THE PROVISIONS OF 42 PA.C.S.

§ 5947 (RELATING TO IMMUNITY OF WITNESSES) IF A PERSON, ON THE GROUNDS OF PRIVILEGE AGAINST SELF-INCRIMINATION, REFUSES TO DO ONE OR MORE OF THE FOLLOWING:

(1) FURNISH DOCUMENTARY MATERIAL IN RESPONSE TO A CIVIL INVESTIGATIVE DEMAND.

(2) ANSWER AN INTERROGATORY IN RESPONSE TO A CIVIL INVESTIGATIVE DEMAND.

(3) ANSWER A QUESTION ASKED DURING ORAL EXAMINATION MADE UNDER A CIVIL INVESTIGATIVE DEMAND.

(4) OTHERWISE COMPLY WITH A CIVIL INVESTIGATIVE DEMAND.

(I) CUSTODY OF DOCUMENTS, ANSWERS AND TRANSCRIPTS.-- (1) UNLESS THE ATTORNEY GENERAL DESIGNATES ANOTHER PERSON, THE FALSE CLAIMS INVESTIGATOR IDENTIFIED ON A CIVIL INVESTIGATIVE DEMAND SHALL SERVE AS CUSTODIAN OF DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS AND ORAL TESTIMONY TRANSCRIPTS RECEIVED UNDER THIS SECTION.

THE ATTORNEY GENERAL 20250SB0115PN2016 - 30 - 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;

OR (II) IF NOT SERVING AS CUSTODIAN, TRANSMIT THE MATERIALS, ANSWERS OR TRANSCRIPTS TO THE CUSTODIAN, WHO SHALL TAKE POSSESSION AND RESPONSIBILITY FOR THE MATERIALS, ANSWERS OR TRANSCRIPTS.

(3) THE CUSTODIAN MAY CAUSE THE PREPARATION OF COPIES OF DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS OR ORAL TESTIMONY TRANSCRIPTS AS MAY BE REQUIRED FOR OFFICIAL USE BY A FALSE CLAIMS INVESTIGATOR OR ANOTHER OFFICER OR EMPLOYEE OF THE OFFICE OF ATTORNEY GENERAL AUTHORIZED TO USE THE MATERIALS, ANSWERS OR TRANSCRIPTS IN CONNECTION WITH THE TAKING OF ORAL TESTIMONY UNDER THIS SECTION.

(4) UNDER REASONABLE TERMS AND CONDITIONS AS THE ATTORNEY GENERAL PRESCRIBES, A CUSTODIAN POSSESSING DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS OR ORAL TESTIMONY TRANSCRIPTS SHALL MAKE THE MATERIAL, ANSWERS AND TRANSCRIPTS AVAILABLE FOR EXAMINATION BY THE PERSON THAT PRODUCED THEM OR BY THE PERSON'S REPRESENTATIVE.

(5) THE FOLLOWING SHALL APPLY:

(I) NOTWITHSTANDING 18 PA.C.S.

CH.

91 (RELATING TO CRIMINAL HISTORY RECORD INFORMATION), A DESIGNEE WHO IS 20250SB0115PN2016 - 31 - 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.

(II) UPON THE CASE OR PROCEEDING'S COMPLETION, AN ATTORNEY UNDER SUBPARAGRAPH (I) SHALL RETURN TO THE CUSTODIAN DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS OR ORAL TESTIMONY TRANSCRIPTS THAT HAVE NOT PASSED INTO THE COURT'S, GRAND JURY'S OR AGENCY'S CONTROL THROUGH INTRODUCTION INTO THE CASE OR PROCEEDING'S RECORD.

(6) THE FOLLOWING SHALL APPLY:

(I) SUBJECT TO SUBPARAGRAPHS (II) AND (III), UPON THE WRITTEN REQUEST OF A PERSON THAT PRODUCED DOCUMENTARY MATERIAL IN CONNECTION WITH A FALSE CLAIMS INVESTIGATION, THE CUSTODIAN SHALL RETURN THE MATERIAL.

(II) THE CUSTODIAN SHALL RETURN THE MATERIAL ONLY IF:

(A) ALL CASES OR PROCEEDINGS ARISING OUT OF THE FALSE CLAIMS INVESTIGATION HAVE BEEN COMPLETED;

OR (B) NO CASE OR PROCEEDING IN WHICH THE MATERIAL MAY BE USED HAS BEEN COMMENCED WITHIN A REASONABLE TIME AFTER COMPLETION OF THE EXAMINATION AND ANALYSIS OF ALL DOCUMENTARY MATERIAL AND OTHER INFORMATION ASSEMBLED IN THE COURSE OF THE FALSE CLAIMS INVESTIGATION.

(III) THE CUSTODIAN SHALL NOT BE REQUIRED TO RETURN EITHER OF THE FOLLOWING:

(A) MATERIAL THAT HAS PASSED INTO A COURT, GRAND 20250SB0115PN2016 - 32 - JURY OR COMMONWEALTH AGENCY'S CONTROL THROUGH INTRODUCTION INTO A CASE OR PROCEEDING'S RECORD;

AND (B) COPIES FURNISHED TO THE FALSE CLAIMS INVESTIGATOR OR MADE IN ACCORDANCE WITH THIS SUBSECTION FOR THE ATTORNEY GENERAL OR A DESIGNEE.

(J) JUDICIAL PROCEEDINGS.-- (1) THE COMMONWEALTH MAY FILE AND SERVE UPON A PERSON A PETITION FOR A COURT ORDER ENFORCING A CIVIL INVESTIGATIVE DEMAND IF:

(I) THE PERSON FAILS TO COMPLY WITH A DEMAND SERVED UPON THE PERSON;

OR (II) SATISFACTORY COPYING OR REPRODUCTION OF THE MATERIAL REQUESTED IN THE DEMAND CANNOT BE DONE AND THE PERSON REFUSES TO SURRENDER THE MATERIAL.

(2) THE FOLLOWING SHALL APPLY:

(I) A DEMAND ISSUEE WHO HAS RECEIVED A CIVIL INVESTIGATIVE DEMAND MAY FILE AND SERVE UPON THE FALSE CLAIMS INVESTIGATOR IDENTIFIED IN THE DEMAND A PETITION FOR A COURT ORDER MODIFYING OR SETTING ASIDE THE DEMAND.

(II) IF A DEMAND IS AN EXPRESS DEMAND FOR A PRODUCT OF DISCOVERY, THE PERSON FROM WHOM DISCOVERY WAS OBTAINED MAY, UPON RECEIPT OF THE DEMAND, FILE AND SERVE UPON THE FALSE CLAIMS INVESTIGATOR IDENTIFIED IN THE DEMAND A PETITION FOR A COURT ORDER MODIFYING OR SETTING ASIDE THOSE PORTIONS OF THE DEMAND REQUIRING PRODUCTION OF THE PRODUCT OF DISCOVERY.

(III) A PETITION UNDER THIS PARAGRAPH MUST BE FILED WITHIN:

(A) THE EARLIER OF 20 DAYS AFTER THE CIVIL INVESTIGATIVE DEMAND IS SERVED ON THE PERSON OR ANY 20250SB0115PN2016 - 33 - TIME BEFORE THE RETURN DATE SPECIFIED IN THE DEMAND;

OR (B) A LONGER PERIOD IF THE FALSE CLAIMS INVESTIGATOR SO PRESCRIBES IN WRITING IN THE DEMAND.

(IV) A PETITION UNDER THIS PARAGRAPH SHALL SPECIFY EACH GROUND THE PETITIONER RELIES ON IN SEEKING RELIEF AND MAY BE BASED ON EITHER OF THE FOLLOWING:

(A) FAILURE OF THE CIVIL INVESTIGATIVE DEMAND, OR ANY PORTION THEREOF, TO COMPLY WITH THIS SECTION'S PROVISIONS;

OR (B) A CONSTITUTIONAL OR OTHER LEGAL RIGHT OR PRIVILEGE OF THE PETITIONER.

(V) DURING THE PENDENCY OF A PETITION UNDER THIS PARAGRAPH, THE FOLLOWING SHALL APPLY:

(A) THE COURT MAY STAY, AS IT DEEMS PROPER, COMPLIANCE WITH ALL OR PART OF THE DEMAND AND THE RUNNING OF TIME ALLOWED FOR COMPLIANCE THEREWITH.

(B) THE PETITIONER MUST COMPLY WITH ANY PORTION OF THE DEMAND THAT IS NOT SOUGHT TO BE MODIFIED OR SET ASIDE, OR OTHERWISE SUBJECT TO A STAY ISSUED BY THE COURT.

(3) AT ANY TIME A CUSTODIAN POSSESSES OR IS IN CUSTODY OR CONTROL OF DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS OR TRANSCRIPTS OF ORAL TESTIMONY GIVEN UNDER A CIVIL INVESTIGATIVE DEMAND, THE FOLLOWING PERSONS MAY FILE AND SERVE UPON THE CUSTODIAN A PETITION FOR A COURT ORDER REQUIRING THE CUSTODIAN TO PERFORM A DUTY IMPOSED ON THE CUSTODIAN BY THIS SECTION:

(I) THE DEMAND ISSUEE THAT FURNISHED THE MATERIAL, ANSWERS OR TESTIMONY;

AND 20250SB0115PN2016 - 34 - (II) IN THE CASE OF AN EXPRESS DEMAND FOR A PRODUCT OF DISCOVERY, THE PERSON FROM WHOM DISCOVERY WAS OBTAINED.

(4) THE FOLLOWING SHALL APPLY:

(I) THE COURT SHALL HAVE JURISDICTION TO HEAR AND DETERMINE A PETITION FILED UNDER THIS SECTION AND, AFTER A HEARING AT WHICH ALL PARTIES HAVE THE OPPORTUNITY TO BE HEARD, TO ENTER ORDERS AS MAY BE REQUIRED TO CARRY OUT THE PROVISIONS OF THIS SECTION.

(II) A FINAL ORDER ENTERED BY COMMONWEALTH COURT UNDER THIS SECTION SHALL BE SUBJECT TO APPEAL TO THE SUPREME COURT UNDER 42 PA.C.S.

§ 723(A) (RELATING TO APPEALS FROM COMMONWEALTH COURT).

(K) EXEMPTION FROM DISCLOSURE.--THE OFFICE OF ATTORNEY GENERAL SHALL BE EXEMPT FROM DISCLOSING UNDER THE ACT OF FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO-KNOW LAW, DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS AND ORAL TESTIMONY PROVIDED UNDER A CIVIL INVESTIGATIVE DEMAND.

(L) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE REGULATORY OR INVESTIGATIVE AUTHORITY OF A DEPARTMENT OR AGENCY OF THE COMMONWEALTH WHOSE FUNCTIONS MAY RELATE TO PERSONS, ENTERPRISES OR MATTERS FALLING WITHIN THE SCOPE OF THIS ARTICLE.

(M) DEFINITIONS.--FOR PURPOSES OF THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CUSTODIAN." THE FALSE CLAIMS INVESTIGATOR OR OTHER CUSTODIAN OR A DEPUTY OR ALTERNATE CUSTODIAN DESIGNATED UNDER SUBSECTION (I) BY THE ATTORNEY GENERAL.

20250SB0115PN2016 - 35 - "DEMAND ISSUEE." A PERSON TO WHOM OR WHICH A CIVIL INVESTIGATIVE DEMAND IS ISSUED OR DIRECTED.

"DESIGNEE." AN ATTORNEY OF THE OFFICE OF ATTORNEY GENERAL DESIGNATED BY THE ATTORNEY GENERAL TO PERFORM DUTIES VESTED IN THE ATTORNEY GENERAL UNDER THIS SECTION.

"DOCUMENTARY MATERIAL." INCLUDES THE ORIGINAL OR A COPY OF A BOOK, RECORD, REPORT, MEMORANDUM, PAPER, COMMUNICATION, TABULATION, CHART OR OTHER DOCUMENT OR DATA COMPILATIONS STORED OR ACCESSIBLE THROUGH COMPUTER OR OTHER INFORMATION RETRIEVAL SYSTEMS, TOGETHER WITH APPROPRIATE AND SUCCINCT INSTRUCTIONS AND ALL OTHER MATERIALS NECESSARY TO USE OR INTERPRET THE DATA COMPILATIONS, AND A PRODUCT OF DISCOVERY.

"FALSE CLAIMS INVESTIGATION." AN INQUIRY CONDUCTED BY A FALSE CLAIMS INVESTIGATOR FOR THE PURPOSES OF ASCERTAINING WHETHER A PERSON IS OR HAS BEEN ENGAGED IN A VIOLATION OF THIS ARTICLE.

"FALSE CLAIMS INVESTIGATOR." AN INDIVIDUAL CHARGED WITH THE DUTY OF ENFORCING OR CARRYING OUT THE PROVISIONS OF THIS ARTICLE WHO IS EITHER OF THE FOLLOWING:

(1) AN ATTORNEY OR INVESTIGATOR EMPLOYED BY THE OFFICE OF ATTORNEY GENERAL.

(2) AN OFFICER OR EMPLOYEE OF THE COMMONWEALTH ACTING UNDER THE ATTORNEY OR INVESTIGATOR'S DIRECTION AND SUPERVISION IN CONNECTION WITH A FALSE CLAIMS INVESTIGATION.

"LEGAL ENTITY." A PERSON OTHER THAN A NATURAL PERSON.

"PERSON." AS DEFINED IN 1 PA.C.S.

§ 1991 (RELATING TO DEFINITIONS).

"PRODUCT OF DISCOVERY." THE TERM INCLUDES:

(1) THE ORIGINAL OR DUPLICATE OF A DEPOSITION, INTERROGATORY, DOCUMENT, THING, RESULT OF THE INSPECTION OF 20250SB0115PN2016 - 36 - 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).

(3) AN INDEX OR OTHER MANNER OF ACCESS TO AN ITEM LISTED IN PARAGRAPH (1).

"VERIFIED." SUPPORTED BY OATH OR AFFIRMATION AND AVERRED SUBJECT TO THE PENALTIES OF 18 PA.C.S.

§ 4904 (RELATING TO UNSWORN FALSIFICATION TO AUTHORITIES).

SECTION 1414-E.

ACCESS AND SHARING OF INFORMATION.

(A) CRIMINAL INFORMATION.-- (1) SUBJECT TO PARAGRAPH (2) AND AS NECESSARY FOR OFFICIAL USE, THE PROVISIONS OF 18 PA.C.S.

CH.

91 (RELATING TO CRIMINAL HISTORY RECORD INFORMATION) SHALL NOT IMPAIR THE OFFICE OF ATTORNEY GENERAL'S ABILITY TO ACCESS AND TO SHARE DATA, RECORDS, DOCUMENTS OR OTHER INFORMATION OBTAINED DURING THE COURSE OF A CRIMINAL INVESTIGATION OR PROSECUTION WITH THE FOLLOWING:

(I) A SECTION, UNIT, SUBUNIT OR INDIVIDUAL EMPLOYEE OR AGENT OF THE OFFICE OF ATTORNEY GENERAL AUTHORIZED BY THE ATTORNEY GENERAL TO ENFORCE THIS ARTICLE.

(II) OFFICIALS OF THE UNITED STATES, OTHER STATES, THE COMMONWEALTH, OR A POLITICAL SUBDIVISION THEREOF CHARGED THE RESPONSIBILITY FOR ENFORCING FEDERAL, STATE OR LOCAL LAWS RESPECTING FRAUD OR FALSE CLAIMS UPON FEDERAL, STATE OR LOCAL GOVERNMENTS.

(III) A QUI TAM PLAINTIFF.

(2) A RECIPIENT UNDER PARAGRAPH (1) WHO IS SUBJECT TO THE JURISDICTION OF THIS COMMONWEALTH SHALL BE SUBJECT TO THE 20250SB0115PN2016 - 37 - PROVISIONS OF 18 PA.C.S.

CH.

91, 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 1413-E OR AS NECESSARY FOR OFFICIAL USE, DOCUMENTARY MATERIAL, INTERROGATORY ANSWERS AND ORAL TESTIMONY TRANSCRIPTS OR COPIES OF THE FOREGOING SHALL NOT BE ACCESSED BY, SHARED WITH OR MADE AVAILABLE FOR EXAMINATION BY AN INDIVIDUAL OTHER THAN A FALSE CLAIMS INVESTIGATOR OR OTHER OFFICER OR EMPLOYEE OF THE OFFICE OF ATTORNEY GENERAL.

(2) THE PROHIBITION IN PARAGRAPH (1) SHALL NOT APPLY IF THE PERSON THAT PRODUCED THE MATERIAL, ANSWERS OR TRANSCRIPTS, OR, IN THE CASE OF A PRODUCT OF DISCOVERY PRODUCED UNDER AN EXPRESS DEMAND FOR THE MATERIAL, THE PERSON FROM WHOM OR WHICH THE DISCOVERY WAS OBTAINED, CONSENTS.

(3) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO PREVENT DISCLOSURE TO THE GENERAL ASSEMBLY, OR A COMMITTEE OR SUBCOMMITTEE THEREOF, OR TO A COMMONWEALTH AGENCY FOR THE AGENCY'S USE IN FURTHERANCE OF ITS STATUTORY OR CONSTITUTIONAL RESPONSIBILITIES, EXCEPT THAT DISCLOSURE SHALL BE SUBJECT TO 18 PA.C.S.

CH.

91.

(4) THE ATTORNEY GENERAL OR A DESIGNEE MAY SHARE INFORMATION OBTAINED UNDER SECTION 1413-E WITH A QUI TAM PLAINTIFF, IF THE ATTORNEY GENERAL OR DESIGNEE DETERMINES THAT IT IS NECESSARY AS PART OF A FALSE CLAIMS INVESTIGATION OR ACTION CONDUCTED UNDER THIS ARTICLE.

SECTION 1415-E.

DISTRIBUTION AND DEPOSIT OF COMMONWEALTH'S SHARE OF PROCEEDS.

20250SB0115PN2016 - 38 - (A) DISTRIBUTION AND DEPOSIT.--THE COMMONWEALTH'S SHARE OF THE PROCEEDS OF AN ACTION OR SETTLEMENT UNDER THIS ARTICLE, NOT INCLUDING THE ENFORCEMENT COSTS AND LESS ANY AMOUNT LEGALLY REQUIRED TO BE PAID FROM THE COMMONWEALTH'S SHARE, SHALL BE DISTRIBUTED AND DEPOSITED AS FOLLOWS:

(1) AN AMOUNT EQUAL TO 20% OF THE TOTAL ENFORCEMENT COSTS SHALL BE DISTRIBUTED FROM THE COMMONWEALTH'S SHARE TO THE OFFICE OF ATTORNEY GENERAL.

(2) AFTER DISTRIBUTION UNDER PARAGRAPH (1):

(I) EACH PORTION OF THE COMMONWEALTH'S SHARE ATTRIBUTABLE TO A CLAIM PAID FROM OR RELATED TO A COMMONWEALTH FUND OR ACCOUNT OTHER THAN THE GENERAL FUND SHALL BE DEPOSITED INTO THE OTHER FUND OR ACCOUNT;

AND (II) EACH PORTION OF THE COMMONWEALTH'S SHARE ATTRIBUTABLE TO A CLAIM PAID FROM OR RELATED TO THE GENERAL FUND SHALL BE DEPOSITED IN THE FRAUD PREVENTION AND RECOVERY ACCOUNT.

(B) PRO RATA BASIS.--THE AMOUNT DEPOSITED IN EACH AFFECTED FUND OR ACCOUNT UNDER SUBSECTION (A)(2) SHALL BE PROPORTIONATE TO THE FUND OR ACCOUNT'S PERCENTAGE OF THE TOTAL DAMAGES SUSTAINED DUE TO THE VIOLATION OF SECTION 1411-E UNDERLYING THE ACTION OR SETTLEMENT.

(C) USE BY COMMONWEALTH AGENCIES.--A COMMONWEALTH AGENCY TO WHICH MONEY UNDER SUBSECTION (A)(2) IS DISTRIBUTED FOR DEPOSIT IN A FUND OR ACCOUNT SHALL USE THE MONEY TO REIMBURSE THE AGENCY-ADMINISTERED PROGRAMS WHOSE FUNDS OR ACCOUNTS WERE DIMINISHED AS A RESULT OF THE VIOLATION.

(D) DEFINITION.--AS USED IN THIS SECTION, THE TERM "ENFORCEMENT COSTS" MEANS THE COSTS AWARDED UNDER SECTION 1411- E(C) TO THE OFFICE OF ATTORNEY GENERAL.

20250SB0115PN2016 - 39 - SECTION 1416-E.

FRAUD PREVENTION AND RECOVERY ACCOUNT.

THE FRAUD PREVENTION AND RECOVERY ACCOUNT IS ESTABLISHED AS A RESTRICTED ACCOUNT WITHIN THE GENERAL FUND.

MONEY IN THE FRAUD PREVENTION AND RECOVERY ACCOUNT MAY ONLY BE USED AS APPROPRIATED BY THE GENERAL ASSEMBLY.

SECTION 1417-E.

ANNUAL REPORT.

(A) REPORT REQUIRED.--WITHIN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, AND THEREAFTER ANNUALLY BY DECEMBER 31 OF EACH YEAR, THE ATTORNEY GENERAL SHALL PREPARE A REPORT CONCERNING ACTIONS TAKEN UNDER THIS ARTICLE.

THE REPORT SHALL BE SUBMITTED TO THE FOLLOWING:

(1) THE GOVERNOR.

(2) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE JUDICIARY COMMITTEE OF THE SENATE.

(3) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE JUDICIARY COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(4) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE.

(5) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(B) CONTENTS.--THE REPORT SHALL INCLUDE THE FOLLOWING:

(1) THE NUMBER OF ACTIONS FILED UNDER THIS ARTICLE BY THE ATTORNEY GENERAL.

(2) THE NUMBER OF ACTIONS FILED UNDER THIS ARTICLE BY THE ATTORNEY GENERAL THAT WERE COMPLETED.

(3) THE AMOUNT THAT WAS RECOVERED IN ACTIONS FILED UNDER THIS ARTICLE BY THE ATTORNEY GENERAL THROUGH SETTLEMENT OR THROUGH A JUDGMENT AND, IF KNOWN, THE AMOUNT RECOVERED FOR DAMAGES, PENALTIES AND LITIGATION COSTS.

(4) THE NUMBER OF ACTIONS FILED UNDER SECTION 1412-E BY 20250SB0115PN2016 - 40 - A QUI TAM PLAINTIFF.

(5) THE NUMBER OF ACTIONS FILED UNDER SECTION 1412-E BY A QUI TAM PLAINTIFF THAT WERE COMPLETED.

(6) THE AMOUNTS THAT WERE RECOVERED IN ACTIONS FILED UNDER SECTION 1412-E BY A QUI TAM PLAINTIFF THROUGH SETTLEMENT OR THROUGH A JUDGMENT AND, IF KNOWN, THE AMOUNTS RECOVERED FOR DAMAGES, PENALTIES AND LITIGATION COSTS AND THE AMOUNTS RECOVERED BY THE COMMONWEALTH AND THE QUI TAM PLAINTIFF.

(7) THE AMOUNT EXPENDED BY THE COMMONWEALTH FOR INVESTIGATION, LITIGATION AND ALL OTHER COSTS FOR LEGAL CLAIMS UNDER THIS ARTICLE.

(8) A NARRATIVE DESCRIBING THE MOST NOTABLE OR PREVALENT VIOLATIONS OF SECTION 1411-E AND RECOMMENDATIONS ON HOW COMMONWEALTH AGENCIES MAY PREVENT SIMILAR VIOLATIONS FROM OCCURRING.

(9) LEGISLATIVE RECOMMENDATIONS THAT THE ATTORNEY GENERAL MAY HAVE FOR AMENDMENTS TO THIS ARTICLE AND ANY OTHER LAW AS IT RELATES TO THIS ARTICLE.

SECTION 1418-E.

STATUTE OF LIMITATIONS, BURDEN OF PROOF AND ESTOPPEL.

(A) STATUTE OF LIMITATIONS.-- (1) SUBJECT TO PARAGRAPH (2), A CIVIL ACTION UNDER SECTION 1412-E MAY NOT BE BROUGHT MORE THAN 10 YEARS AFTER THE DATE ON WHICH THE VIOLATION WAS COMMITTED.

(2) IF A VIOLATION IS PART OF A CONTINUING COURSE OF CONDUCT, A CIVIL ACTION UNDER SECTION 1412-E MAY NOT BE BROUGHT MORE THAN 10 YEARS AFTER THE DATE ON WHICH THE LAST VIOLATION IN THE CONTINUING COURSE OF CONDUCT WAS COMMITTED.

(3) IF THE COMMONWEALTH ELECTS TO INTERVENE AND PROCEED 20250SB0115PN2016 - 41 - WITH AN ACTION BROUGHT UNDER SECTION 1412-E(B):

(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 TO ADD ANY ADDITIONAL LEGAL CLAIMS WITH RESPECT TO WHICH THE COMMONWEALTH CONTENDS IT IS ENTITLED TO RELIEF.

(II) THE COMMONWEALTH'S PLEADING SHALL RELATE BACK TO THE FILING DATE OF THE QUI TAM PLAINTIFF'S COMPLAINT TO THE EXTENT THAT THE COMMONWEALTH'S LEGAL CLAIMS ARISE OUT OF THE CONDUCT, TRANSACTIONS OR OCCURRENCES SET FORTH, OR ATTEMPTED TO BE SET FORTH, IN THE QUI TAM PLAINTIFF'S COMPLAINT.

(B) BURDEN OF PROOF.--IN AN ACTION BROUGHT UNDER SECTION 1412-E, THE COMMONWEALTH OR THE QUI TAM PLAINTIFF SHALL BE REQUIRED TO PROVE ALL ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION, INCLUDING DAMAGES, BY A PREPONDERANCE OF THE EVIDENCE.

(C) ESTOPPEL.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A FINAL JUDGMENT RENDERED IN THE COMMONWEALTH'S FAVOR IN A CRIMINAL PROCEEDING CHARGING FALSE STATEMENTS OR FRAUD, WHETHER UPON A VERDICT AFTER TRIAL OR UPON A PLEA OF GUILTY OR NOLO CONTENDERE, SHALL ESTOP THE DEFENDANT FROM DENYING THE ESSENTIAL ELEMENTS OF THE OFFENSE IN AN ACTION BROUGHT UNDER SECTION 1412- E THAT INVOLVES THE SAME TRANSACTION AS IN THE CRIMINAL PROCEEDING.

SECTION 1419-E.

CERTAIN RULES, POLICIES AND AGREEMENTS PROHIBITED.

(A) PROHIBITION.--AN EMPLOYER MAY NOT ENGAGE IN EITHER OF THE FOLLOWING:

(1) MAKING, ADOPTING OR ENFORCING A RULE, REGULATION OR POLICY PREVENTING AN EMPLOYEE, CONTRACTOR OR AGENT FROM 20250SB0115PN2016 - 42 - DISCLOSING INFORMATION TO A GOVERNMENT AGENCY OR LAW ENFORCEMENT AGENCY RELATED TO, OR FROM ACTING TO STOP, A VIOLATION OF SECTION 1411-E.

(2) REQUIRING AS A CONDITION OF EMPLOYMENT, DURING THE TERM OF EMPLOYMENT OR AT OR UPON THE TERMINATION OF EMPLOYMENT, THAT AN EMPLOYEE, CONTRACTOR OR AGENT AGREE TO, ACCEPT OR EXECUTE AN AGREEMENT THAT LIMITS OR DENIES THE EMPLOYEE, CONTRACTOR OR AGENT'S ABILITY TO:

(I) DISCLOSE TO A GOVERNMENT AGENCY OR LAW ENFORCEMENT AGENCY INFORMATION RELATED TO AN ALLEGED OR ACTUAL VIOLATION OF SECTION 1411-E;

OR (II) BRING AN ACTION UNDER SECTION 1412-E(B) OR 1420-E.

(B) RULES, POLICIES OR AGREEMENTS VOID.--A RULE, REGULATION, POLICY OR AGREEMENT THAT VIOLATES SUBSECTION (A) IS VOID TO THE EXTENT OF THE VIOLATION.

(C) CONSTRUCTION.--SUBSECTION (A)(2)(II) SHALL NOT BE CONSTRUED TO PROHIBIT, AS A TERM OF GOOD-FAITH SETTLEMENT OF A DISPUTED LEGAL CLAIM, THE RELEASE AND DISCHARGE OF AN EMPLOYEE, CONTRACTOR OR AGENT'S LEGAL CLAIM UNDER SECTION 1420-E.

SECTION 1420-E.

RELIEF FROM RETALIATION.

(A) RELIEF.--AN EMPLOYEE, CONTRACTOR OR AGENT SHALL BE ENTITLED TO ALL RELIEF NECESSARY TO MAKE THE EMPLOYEE, CONTRACTOR OR AGENT WHOLE, IF THE EMPLOYEE, CONTRACTOR OR AGENT IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED, HARASSED OR IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE TERMS AND CONDITIONS OF EMPLOYMENT, CONTRACT OR AGENCY BECAUSE OF LAWFUL ACTS DONE BY THE EMPLOYEE, CONTRACTOR, AGENT OR ASSOCIATED OTHERS IN FURTHERANCE OF AN ACTION UNDER THIS ARTICLE OR OTHER EFFORTS TO STOP A VIOLATION OF THIS ARTICLE.

20250SB0115PN2016 - 43 - (B) REINSTATEMENT.--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.

(C) BURDEN OF PROOF.--IN AN ACTION UNDER THIS SECTION, A PLAINTIFF SHALL BE REQUIRED TO PROVE ALL ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION, INCLUDING DAMAGES, BY A PREPONDERANCE OF THE EVIDENCE.

(D) LIMITATION.--AN ACTION UNDER THIS SECTION MAY NOT BE BROUGHT MORE THAN THREE YEARS AFTER THE DATE ON WHICH THE EMPLOYEE, CONTRACTOR OR AGENT LEARNS THE RETALIATION OCCURRED.

SECTION 1421-E.

ACTIONS AND REMEDIES UNDER OTHER LAWS.

(A) ACTIONS AND REMEDIES NOT EXCLUSIVE.--THE PROVISIONS OF THIS ARTICLE ARE NOT EXCLUSIVE AND THE ACTIONS AND REMEDIES PROVIDED FOR IN THIS ARTICLE SHALL BE IN ADDITION TO ANY OTHER ACTIONS AND REMEDIES PROVIDED FOR IN ANY OTHER LAW OR AVAILABLE UNDER THE COMMON LAW.

(B) CONSTRUCTION.--THE AVAILABILITY OF AN ACTION OR REMEDY PROVIDED FOR IN ANY OTHER LAW OR AVAILABLE UNDER THE COMMON LAW SHALL NOT BE CONSTRUED TO EXCLUDE, IMPAIR OR LIMIT THE AVAILABILITY OR USE OF THE PROVISIONS OF THIS ARTICLE.

(C) EXISTING PRIVILEGES AND IMMUNITIES UNAFFECTED.--THIS ARTICLE SHALL NOT ABROGATE NOR MODIFY ANY EXISTING STATUTORY OR COMMON LAW PRIVILEGE OR IMMUNITY.

SECTION 1422-E.

QUALIFICATION OF ARTICLE FOR INCREASED SHARE OF RECOVERIES.

(A) SUBMISSION.--WITHIN 30 DAYS AFTER THE EFFECTIVE DATE OF 20250SB0115PN2016 - 44 - THIS SUBSECTION, 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 OF 1935 (49 STAT.

620, 42 U.S.C.

§ 1396H(B)), IN ORDER TO QUALIFY THE COMMONWEALTH FOR AN INCREASED SHARE OF AMOUNTS RECOVERED UNDER THIS ARTICLE WITH RESPECT TO FALSE OR FRAUDULENT CLAIMS SUBMITTED TO THE MEDICAL ASSISTANCE PROGRAM.

(B) REVIEW AND RECOMMENDATIONS.--IF THE OFFICE OF INSPECTOR GENERAL, UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES DETERMINES THAT THIS ARTICLE DOES NOT MEET THE REQUIREMENTS OF SECTION 1909(B) OF THE SOCIAL SECURITY ACT OF 1935, THE ATTORNEY GENERAL SHALL PREPARE AND TRANSMIT TO THE OFFICIALS DESIGNATED IN SECTION 1417-E(A) A REPORT EXPLAINING THE REASONS FOR THE DENIAL AND SUGGESTED REVISIONS TO THIS ARTICLE THAT WOULD CAUSE THIS ARTICLE TO MEET THE REQUIREMENTS OF SECTION 1909(B) OF THE SOCIAL SECURITY ACT OF 1935.

SECTION 1423-E.

RULES OF PROCEDURE.

EXCEPT AS OTHERWISE SPECIFIED IN, OR WHERE CLEARLY INCONSISTENT WITH, THIS ARTICLE, ORIGINAL PROCEEDINGS UNDER THIS ARTICLE SHALL BE GOVERNED BY THE PENNSYLVANIA RULES OF CIVIL PROCEDURE OR OTHER APPLICABLE COURT RULE.

SECTION 1424-E.

TRIAL BY JURY.

A PARTY TO AN ACTION UNDER THIS ARTICLE SHALL BE ENTITLED TO TRIAL BY JURY.

SECTION 1425-E.

IMPLEMENTATION.

(A) REGULATIONS.--THE ATTORNEY GENERAL IS EMPOWERED AND AUTHORIZED TO PROMULGATE REGULATIONS AS NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE.

20250SB0115PN2016 - 45 - (B) TEMPORARY REGULATIONS.-- (1) THE FOLLOWING SHALL APPLY:

(I) IN ORDER TO FACILITATE THE SPEEDY IMPLEMENTATION OF THIS ARTICLE, THE ATTORNEY GENERAL IS AUTHORIZED TO ADOPT TEMPORARY REGULATIONS WITHIN THREE YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION.

A TEMPORARY REGULATION PROMULGATED UNDER THIS SECTION SHALL NOT BE SUBJECT TO ANY OF THE FOLLOWING:

(A) SECTION 612 OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.

(B) SECTIONS 201, 202, 203, 204 AND 205 OF THE ACT OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW.

(C) SECTIONS 204(B) AND 301(10) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.

(D) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT.

(II) THE ATTORNEY GENERAL IS AUTHORIZED TO ADOPT NECESSARY AMENDMENTS TO A TEMPORARY REGULATION AT ANY TIME BEFORE THE TEMPORARY REGULATION'S EXPIRATION.

(III) THE ATTORNEY GENERAL SHALL TRANSMIT TEMPORARY REGULATIONS AND AMENDMENTS THERETO TO THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE NEXT AVAILABLE ISSUE OF THE PENNSYLVANIA BULLETIN.

(IV) A TEMPORARY REGULATION OR AMENDMENT THERETO SHALL TAKE EFFECT UPON ITS PUBLICATION IN THE PENNSYLVANIA BULLETIN.

(V) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (2), 20250SB0115PN2016 - 46 - TEMPORARY REGULATIONS AND AMENDMENTS THERETO SHALL EXPIRE THE EARLIER OF THREE YEARS AFTER THE PUBLICATION IN THE PENNSYLVANIA BULLETIN, OR A DATE THE ATTORNEY GENERAL DESIGNATES.

(2) AT ANY TIME BEFORE A TEMPORARY REGULATION EXPIRES UNDER PARAGRAPH (1)(V), THE ATTORNEY GENERAL MAY PROMULGATE A FINAL VERSION OF THE TEMPORARY REGULATION, IN WHICH CASE THE TEMPORARY REGULATION SHALL EXPIRE WHEN THE FINAL VERSION TAKES EFFECT, IS FINALLY DISAPPROVED OR IS WITHDRAWN BY THE ATTORNEY GENERAL.

(C) CONSTRUCTION.--THIS SECTION IS NOT INTENDED TO IMPAIR THE ATTORNEY GENERAL'S DISCRETION TO ADOPT POLICIES AS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE.

SECTION 1426-E.

JURISDICTION AND ATTORNEY GENERAL AS RELATOR IN FEDERAL FALSE CLAIMS ACTIONS.

(A) JURISDICTION.--AN ACTION OR PETITION UNDER THIS ARTICLE SHALL BE FILED IN A COURT OF COMPETENT JURISDICTION.

THE FOLLOWING SHALL APPLY:

(1) COMMONWEALTH COURT SHALL HAVE ORIGINAL JURISDICTION OF AN ACTION UNDER SECTION 1412-E OR PETITION UNDER SECTION 1413-E.

THE COURTS OF COMMON PLEAS SHALL HAVE ORIGINAL JURISDICTION OF AN ACTION UNDER SECTION 1420-E.

(2) A COURT EXERCISING JURISDICTION OF AN ACTION UNDER THIS ARTICLE SHALL HAVE ANCILLARY JURISDICTION OVER LEGAL CLAIMS ASSERTED UNDER THE LAWS OF THE UNITED STATES, A STATE OR A LOCAL GOVERNMENT THAT ARISE FROM THE SAME TRANSACTION OR OCCURRENCE AS THE ACTION.

(B) ATTORNEY GENERAL AS RELATOR.--TO THE EXTENT PERMITTED BY FEDERAL LAW, THE ATTORNEY GENERAL MAY BRING AN ACTION AS A RELATOR UNDER 31 U.S.C.

§ 3730 (RELATING TO CIVIL ACTIONS FOR 20250SB0115PN2016 - 47 - 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).

(C) SERVICE ON OTHER AUTHORITIES.--WITH RESPECT TO THE FEDERAL GOVERNMENT OR A STATE OR LOCAL GOVERNMENT THAT IS NAMED AS A CO-PLAINTIFF WITH THE COMMONWEALTH IN AN ACTION BROUGHT UNDER THIS ARTICLE, THE FOLLOWING SHALL APPLY TO A SEAL ON THE ACTION ORDERED BY THE COURT UNDER SECTION 1412-E(B):

(1) THE SEAL SHALL NOT PRECLUDE THE COMMONWEALTH OR THE QUI TAM PLAINTIFF FROM:

(I) SERVING THE COMPLAINT OR OTHER PLEADINGS OR FILINGS UPON OFFICIALS WHO ARE CHARGED WITH THE RESPONSIBILITY FOR ENFORCING THE LAW OF THAT FEDERAL, STATE OR LOCAL GOVERNMENT RESPECTING FRAUD OR FALSE CLAIMS UPON FEDERAL, STATE OR LOCAL GOVERNMENTS.

(II) DISCLOSING TO THE OFFICIALS UNDER SUBPARAGRAPH (I) SUBSTANTIALLY ALL MATERIAL EVIDENCE AND INFORMATION THAT THE COMMONWEALTH OR THE QUI TAM PLAINTIFF POSSESSES.

(2) THE SEAL SHALL APPLY TO THE OFFICIALS UNDER PARAGRAPH (1) SERVED TO THE SAME EXTENT AS THE SEAL APPLIES TO OTHER PARTIES IN THE ACTION.

SECTION 3.

THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE ADDITION OF ARTICLE XIV-E OF THE ACT SHALL TAKE EFFECT IN 120 DAYS.

(2) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT SHALL TAKE EFFECT IN 60 DAYS.

20250SB0115PN2016 - 48 -