Bill Text: PA SB1113 | 2009-2010 | Regular Session | Introduced


Bill Title: Providing for liability for false claims, for adoption of Congressional intent of the Federal False Claims Act, for treble damages, costs and civil penalties, for powers of the Attorney General and for qui tam actions.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-10-08 - Referred to JUDICIARY [SB1113 Detail]

Download: Pennsylvania-2009-SB1113-Introduced.html

  

 

    

PRINTER'S NO.  1483

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1113

Session of

2009

  

  

INTRODUCED BY WILLIAMS, D. WHITE, FONTANA, FERLO, O'PAKE, BRUBAKER, ERICKSON, M. WHITE, DINNIMAN, FARNESE, BOSCOLA, RAFFERTY, GORDNER, TARTAGLIONE, FOLMER, LEACH, PIPPY AND WARD, OCTOBER 8, 2009

  

  

REFERRED TO JUDICIARY, OCTOBER 8, 2009  

  

  

  

AN ACT

  

1

Providing for liability for false claims, for adoption of

2

Congressional intent of the Federal False Claims Act, for

3

treble damages, costs and civil penalties, for powers of the

4

Attorney General and for qui tam actions.

5

TABLE OF CONTENTS

6

Chapter 1.  Preliminary Provisions

7

Section 101.  Short title.

8

Section 102.  Declaration of policy.

9

Section 103.  Definitions.

10

Chapter 3.  False Claims

11

Section 301.  Acts subjecting persons to liability for treble

12

damages, costs and civil penalties; exceptions.

13

Section 302.  Attorney General investigations and prosecutions;

14

powers of prosecuting authority; civil actions by

15

individuals as qui tam plaintiff and as private

16

citizen; jurisdiction of courts; service; information

17

sharing.

18

Section 303.  Limitation of actions; prior activities; burden of

 


1

proof.

2

Section 304.  Remedies under other laws; severability of

3

provisions; liberality of legislative construction.

4

Section 305.  Regulations.

5

Chapter 21.  Miscellaneous Provisions

6

Section 2101.  Effective date.

7

The General Assembly of the Commonwealth of Pennsylvania

8

hereby enacts as follows:

9

CHAPTER 1

10

PRELIMINARY PROVISIONS

11

Section 101.  Short title.

12

This act shall be known and may be cited as the False Claims

13

Act.

14

Section 102.  Declaration of policy.

15

The General Assembly declares that this act adopts the intent

16

of Congress in enacting the Federal False Claims Act (Public Law

17

97-258, 31 U.S.C. §§ 3729-3733) on September 13, 1982, including

18

the amendments (Public Law 99-562, 100 Stat. 3153) enacted

19

October 27, 1986.

20

Section 103.  Definitions.

21

The following words and phrases when used in this act shall

22

have the meanings given to them in this section unless the

23

context clearly indicates otherwise:

24

"Claim."  A request or demand for money, property or

25

services, regardless of whether the Commonwealth has title to

26

the money or services, made to any employee, officer or agent of

27

the Commonwealth, or to any contractor, grantee or other

28

recipient, if the money or property is to be spent or used on

29

the Commonwealth's behalf or to advance a program or interest,

30

regardless of whether under contract or not, if any portion of

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1

the money, property or services requested or demanded, issued

2

from or was provided using Commonwealth funds, or if the

3

Commonwealth will reimburse the contractor, grantee or other

4

recipient for any portion of the money or property requested or

5

demanded. To the extent it is not connected to a request or

6

demand for reimbursement from the Commonwealth or its political

7

subdivisions or a request or demand for a contract or grant with

8

the Commonwealth or its political subdivisions, a filing with a

9

Commonwealth agency shall not constitute a claim. The term also

10

does not include requests or demands for money or property the

11

Commonwealth has paid to an individual as compensation for

12

employment or as an income subsidy with no restrictions on the

13

individual's use of the money or property.

14

"Employer."  A natural person, corporation, firm,

15

association, organization, partnership, business, trust or

16

Commonwealth-affiliated entity involved in a nongovernmental

17

function, including State universities and State hospitals.

18

"Knowingly."  Whenever a person, with respect to information,

19

does any of the following:

20

(1)  Has actual knowledge of the information.

21

(2)  Acts in deliberate ignorance of the truth or falsity

22

of the information.

23

(3)  Acts in reckless disregard of the truth or falsity

24

of the information. Proof of specific intent to defraud is

25

not required.

26

"Material."  A natural tendency to influence, or be capable

27

of influencing, the payment or receipt of money or property.

28

"Obligation."  An established duty, whether or not fixed,

29

arising from an express or implied contractual, grantor-grantee

30

or licensor-licensee relationship, from a fee-based or similar

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1

relationship, from statute or regulation, or from the retention

2

of any overpayment.

3

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

4

organization, partnership, business or trust.

5

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

6

section 301.

7

CHAPTER 3

8

FALSE CLAIMS

9

Section 301.  Acts subjecting persons to liability for treble

10

damages, costs and civil penalties; exceptions.

11

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

12

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

13

times the amount of damages which the Commonwealth sustains

14

because of the act of that person.

15

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

16

following acts shall also be liable to the Commonwealth for the

17

costs of a civil action brought to recover any of those

18

penalties or damages and shall be liable to the Commonwealth for

19

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

20

$10,000, as adjusted by the Federal Civil Penalties Inflation

21

Adjustment Act of 1990 (Public Law 101-410, 104 Stat. 890), for

22

each violation:

23

(1)  Knowingly presents or causes to be presented a false

24

or fraudulent claim for payment or approval.

25

(2)  Knowingly makes, uses or causes to be made or used,

26

a false record or statement material to get a false or

27

fraudulent claim.

28

(3)  Conspires to commit a violation of paragraph (1),

29

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

30

(4)  Has possession, custody or control of public

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1

property or money used or to be used by the Commonwealth and

2

knowingly delivers or causes to be delivered less than all of

3

the money or property.

4

(5)  Is authorized to make or deliver a document

5

certifying receipt of property used or to be used by the

6

Commonwealth and knowingly makes or delivers a receipt that

7

falsely represents the property used or to be used.

8

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

9

obligation or debt, public property from any person who

10

lawfully may not sell or pledge the property.

11

(7)  Knowingly makes, uses or causes to be made or used,

12

a false record or statement material to an obligation to pay

13

or transmit money or property to the Commonwealth or

14

knowingly conceals or knowingly and improperly avoids or

15

decreases an obligation to pay or transmit money or property

16

to the Commonwealth.

17

(8)  Is a beneficiary of an inadvertent submission of a

18

false claim to any employee, officer or agent of the

19

Commonwealth or to any contractor, grantee or other recipient

20

of Commonwealth funds, subsequently discovers the falsity of

21

the claim and fails to disclose the false claim to the

22

Commonwealth within a reasonable time after discovery of the

23

false claim.

24

(c)  Damages limitation.--Notwithstanding subsection (a), the

25

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

26

which the Commonwealth sustains because of the act of the person

27

described in that subsection and no civil penalty if the court

28

finds all of the following:

29

(1)  The person committing the violation furnished the

30

Commonwealth officials who are responsible for investigating

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1

false claims violations with all information known to that

2

person about the violation within 30 days after the date on

3

which the person first obtained the information.

4

(2)  The person fully cooperated with any investigation

5

by the Commonwealth.

6

(3)  At the time the person furnished the Commonwealth

7

with information about the violation, no criminal

8

prosecution, civil action or administrative action has

9

commenced with respect to the violation, and the person did

10

not have actual knowledge of the existence of an

11

investigation into the violation.

12

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

13

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

14

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

15

Section 302.  Attorney General investigations and prosecutions;

16

powers of prosecuting authority; civil actions by

17

individuals as qui tam plaintiff and as private

18

citizen; jurisdiction of courts; services;

19

information sharing.

20

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

21

General shall diligently investigate a violation of section 301.

22

If the Attorney General finds that a person has violated or is

23

violating section 301, the Attorney General may bring a civil

24

action under this section against that person.

25

(b)  Actions by private persons.--

26

(1)  A person may bring a civil action for a violation of

27

this act for the person and for the Commonwealth in the name

28

of the Commonwealth. The person bringing the action shall be

29

referred to as the qui tam plaintiff. Once filed, the action

30

shall be dismissed only with the written consent of the

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1

court, taking into account the best interest of the parties

2

involved and the policy of this act.

3

(2)  A copy of the complaint and written disclosure of

4

substantially all material evidence and information the qui

5

tam plaintiff possesses shall be served on the Attorney

6

General. The complaint shall be filed in camera and shall

7

remain under seal for at least 60 days and shall not be

8

served on the defendant until the court orders the service.

9

The Commonwealth may elect to intervene and proceed with the

10

action within 60 days after it receives the complaint and the

11

material evidence and information.

12

(3)  The Commonwealth may, for good cause shown, move the

13

court for extensions of the time during which the complaint

14

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

15

supported by affidavits or other submissions in camera. The

16

defendant shall not be required to respond to any complaint

17

filed under this section until the complaint is unsealed and

18

served upon the defendant under the Pennsylvania Rules of

19

Civil Procedure.

20

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

21

extensions obtained under paragraph (3), the Commonwealth

22

shall:

23

(i)  proceed with the action, in which case the

24

action shall be conducted by the Commonwealth; or

25

(ii)  notify the court it declines to take over the

26

action, in which case the person bringing the action

27

shall have the right to conduct the action.

28

(c)  Intervention.--When a person brings a valid action under

29

this subsection, no person other than the Commonwealth may

30

intervene or bring a related action based on the facts

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1

underlying the pending action.

2

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

3

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

4

shall have the primary responsibility for prosecuting the

5

action and shall not be bound by an act of the person

6

bringing the action. The qui tam plaintiff shall have the

7

right to continue as a party to the action, subject to the

8

limitations set forth in paragraph (2).

9

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

10

for good cause despite the objections of the qui tam

11

plaintiff if the qui tam plaintiff has been notified by

12

the Commonwealth of the filing of the motion and the

13

court has provided the qui tam plaintiff with an

14

opportunity to oppose the motion and present evidence at

15

a hearing.

16

(ii)  The Commonwealth may settle the action with the

17

defendant despite the objections of the qui tam plaintiff

18

if the court determines, after a hearing providing the

19

qui tam plaintiff an opportunity to present evidence, the

20

proposed settlement is fair, adequate and reasonable

21

under the circumstances.

22

(iii)  Upon a showing by the Commonwealth that

23

unrestricted participation during the course of the

24

litigation by the qui tam plaintiff would interfere with

25

or unduly delay the Commonwealth's prosecution of the

26

case or would be repetitious, irrelevant or harassment,

27

the court may, in its discretion, impose limitations on

28

the qui tam plaintiff's participation by:

29

(A)  limiting the number of witnesses the person

30

may call;

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1

(B)  limiting the length of the testimony of the

2

witnesses;

3

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

4

examination of witnesses; or

5

(D)  otherwise limiting the participation by the

6

person in the litigation.

7

(iv)  Upon a showing by the defendant that

8

unrestricted participation during the litigation by the

9

qui tam plaintiff initiating the action would be for

10

purposes of harassment or would cause the defendant undue

11

burden or unnecessary expense, the court may limit the

12

participation by the qui tam plaintiff in the litigation.

13

(3)  If the Commonwealth elects not to proceed with the

14

action, the qui tam plaintiff shall have the right to conduct

15

the action. If the Commonwealth requests, it shall be served

16

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

17

supplied with copies of all deposition transcripts at the

18

Commonwealth's expense. When a person proceeds with the

19

action, the court, without limiting the status and rights of

20

the qui tam plaintiff, may permit the Commonwealth to

21

intervene at a later date upon a showing of good cause.

22

(4)  Whether or not the Commonwealth proceeds with the

23

action, upon a showing by the Commonwealth that certain

24

actions of discovery by the qui tam plaintiff would interfere

25

with the Commonwealth's investigation or prosecution of a

26

criminal or civil matter arising out of the same facts, the

27

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

28

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

29

extend the 60-day period upon a further showing in camera

30

that the Commonwealth has pursued the criminal or civil

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1

investigation or proceedings with reasonable diligence and

2

the discovery proposed in the civil action will interfere

3

with the ongoing criminal or civil investigations or

4

proceedings.

5

(5)  Notwithstanding subsection (b), the Commonwealth may

6

elect to pursue its claim through an alternate remedy

7

available to the Commonwealth, including an administrative

8

proceeding to determine a civil money penalty. If the

9

alternate remedy is pursued in another proceeding, the qui

10

tam plaintiff shall have the same rights in the proceeding as

11

if the action continued under this section. A finding of fact

12

or conclusion of law made in the other proceeding that has

13

become final shall be conclusive on all parties to an action

14

under this section. A finding or conclusion is final if it

15

has been finally determined on appeal to the appropriate

16

court of the Commonwealth, if the time for filing the appeal

17

regarding the finding or conclusion has expired or if the

18

finding or conclusion is not subject to judicial review.

19

(e)  Award to qui tam plaintiff.--

20

(1)  If the Commonwealth proceeds with an action brought

21

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

22

to the provisions of this paragraph, receive at least 15% but

23

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

24

of the claim, including damages, civil penalties, payments

25

for costs of compliance and any other economic benefit

26

realized by the Commonwealth as a result of the action,

27

depending upon the extent to which either or both the person

28

and his counsel substantially contributed to the prosecution

29

of the action. Where the court finds the action is based

30

primarily on disclosures of specific information, other than

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1

information provided by the qui tam plaintiff, relating to

2

allegations or transactions specifically in a criminal, civil

3

or administrative hearing or in a legislative or

4

administrative report, hearing, audit or investigation or

5

from the news media, the court may award the sums as it

6

considers appropriate, but in no case more than 10% of the

7

proceeds, taking into account the significance of the

8

information and the role of the person bringing the action in

9

advancing the case to litigation. A payment to a person under

10

the first or second sentence of this paragraph shall be made

11

from the proceeds. The person shall also receive an amount

12

for reasonable expenses which the appropriate judge finds was

13

necessarily incurred, plus reasonable attorney fees and

14

costs. The expenses, fees and costs shall be awarded against

15

the defendant.

16

(2)  If the Commonwealth does not proceed with an action

17

under this section, the qui tam plaintiff shall receive an

18

amount which the court decides is reasonable for collecting

19

the civil penalty and damages. The amount shall not be less

20

than 25% and not more than 30% of the proceeds of the action

21

or settlement and shall be paid out of the proceeds, which

22

includes damages, civil penalties, payments for costs of

23

compliance and any other economic benefit realized by the

24

government as a result of the action. The person shall also

25

receive an amount for reasonable expenses which the

26

appropriate Commonwealth court judge finds to have been

27

necessarily incurred, plus reasonable attorney fees and

28

costs. All the expenses, fees and costs shall be awarded

29

against the defendant.

30

(3)  Whether or not the Commonwealth proceeds with the

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1

action, if the court finds the action was filed by a person

2

who planned and initiated the violation of section 301(a)

3

upon which the action was filed, then the court may, to the

4

extent the court considers appropriate, reduce the share of

5

the proceeds of the action which the person would otherwise

6

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

7

role of that person in advancing the case to litigation and

8

any relevant circumstances pertaining to the violation. If

9

the person bringing the action is convicted of criminal

10

conduct arising from his or her role in the violation of

11

section 301(a), that person shall be dismissed from the civil

12

action and shall not receive a share of the proceeds of the

13

action. The dismissal shall not prejudice the right of the

14

Commonwealth to continue the action.

15

(4)  If the Commonwealth does not proceed with the action

16

and the person bringing the action conducts the action, the

17

court may award to the defendant its reasonable attorney fees

18

and expenses if the defendant prevails in the action and the

19

court finds the claim of the person bringing the action was

20

clearly frivolous, clearly vexatious or brought primarily for

21

purposes of harassment.

22

(f)  Certain actions barred.--

23

(1)  No court shall have jurisdiction over an action

24

brought under subsection (b) against a member of the

25

legislative branch, a member of the judiciary or a senior

26

executive branch official if the action is based on evidence

27

or information known to the Commonwealth when the action was

28

brought.

29

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

30

subsection (b) which is based upon allegations or

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1

transactions which are the subject of a civil suit or an

2

administrative civil penalty proceeding for money in which

3

the Commonwealth is already a party.

4

(3)  Upon the motion of the Attorney General, the court

5

may, in consideration of all the equities, dismiss a relator

6

of the elements of the actionable false claims alleged in the

7

qui tam complaint which have been publicly disclosed,

8

specifically in the news media or in a publicly disseminated

9

governmental report, at the time the complaint is filed.

10

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

11

Commonwealth is not liable for expenses which a person incurs in

12

bringing an action under this section.

13

(h)  Private action for retaliation action.--An employee,

14

contractor or agent who is discharged, demoted, suspended,

15

threatened, harassed or in any other manner discriminated

16

against in the terms and conditions of employment by the

17

employer because of lawful acts by the employee, contractor or

18

agent on behalf of the employee, contractor or agent or

19

associated others in furtherance of other efforts to stop one or

20

more violations of this act shall be entitled to all relief

21

necessary to make the employee whole. The relief shall include

22

reinstatement with the same seniority status the employee,

23

contractor or agent would have had but for the discrimination,

24

two times the amount of back pay, interest on the back pay and

25

compensation for any special damages sustained as a result of

26

the discrimination, including litigation costs and reasonable

27

attorney fees. An action under this subsection shall be brought

28

in an appropriate court of this Commonwealth for the relief

29

provided in this subsection.

30

(i)  Civil investigative demand.--

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1

(1)  (i)  The Attorney General or designee for the

2

purposes of this subsection shall have the authority to

3

issue civil investigative demands under paragraph (2).

4

(ii)  Nothing in this subsection shall be construed

5

to limit the regulatory or investigative authority of any

6

department or agency of the Commonwealth whose functions

7

may relate to persons, enterprises or matters falling

8

within the scope of this chapter.

9

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

10

believe that any person or enterprise may be in

11

possession, custody or control of documentary material

12

relevant to an investigation under this chapter, the

13

Attorney General may issue in writing, and cause to be

14

served upon the person or enterprise, a civil

15

investigative demand requiring the production of the

16

material for examination.

17

(ii)  Each demand shall:

18

(A)  state the nature of the conduct constituting

19

the alleged violation which is under investigation,

20

the applicable provision of law and the connection

21

between the documentary material demanded and the

22

conduct under investigation;

23

(B)  describe the class or classes of documentary

24

material to be produced with sufficient definiteness

25

and certainty to permit the material to be fairly

26

identified;

27

(C)  state the demand is returnable or prescribe

28

a return date which will provide a reasonable time

29

period within which the material demanded may be

30

assembled and made available for inspection and

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1

copying or reproduction;

2

(D)  identify an investigator to whom the

3

material shall be made available; and

4

(E)  contain the following statement printed

5

conspicuously at the top of the demand: "You have the

6

right to seek the assistance of an attorney and he

7

may represent you in all phases of the investigation

8

of which this civil investigative demand is a part."

9

(iii)  The demand shall not:

10

(A)  contain a requirement which would be held to

11

be unreasonable if contained in a subpoena duces

12

tecum issued by any court in connection with a grand

13

jury investigation of such alleged violation; or

14

(B)  require the production of documentary

15

evidence which would be privileged from disclosure if

16

demanded by a subpoena duces tecum issued by a court

17

in connection with a grand jury investigation of the

18

alleged violation.

19

(iv)  Service of any such demand or any petition

20

filed under this paragraph shall be made in the manner

21

prescribed by the Pennsylvania Rules of Civil Procedure

22

for service of writs and complaints.

23

(v)  A verified return by the individual serving a

24

demand or petition setting forth the manner of the

25

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

26

case of service by registered or certified mail, the

27

return shall be accompanied by the return post office

28

receipt of delivery of the demand.

29

(vi)  (A)  Any party upon whom any demand issued

30

under this subsection has been duly served shall make

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1

the material available for inspection and copying or

2

reproduction to the investigator designated at the

3

principal place of business of the party, or at the

4

other place as the investigator and party may agree

5

or as the court may direct under this paragraph, on

6

the return date specified in the demand. The party

7

may upon agreement of the investigator substitute

8

copies of all or any part of the material for the

9

originals.

10

(B)  The investigator to whom documentary

11

material is delivered shall take physical possession

12

of it and shall be responsible for the use for which

13

it is made and for its return under this paragraph.

14

The investigator may cause the preparation of copies

15

of the documentary material as may be required for

16

official use. While in the possession of the

17

investigator, no material produced shall be available

18

for examination without the consent of the party who

19

produced the material by an individual other than the

20

Attorney General or investigator. Under reasonable

21

terms and conditions as the Attorney General shall

22

prescribe, documentary material while in the

23

possession of the investigator shall be available for

24

examination by the party who produced the material or

25

a duly authorized representative of the party.

26

(C)  Upon completion of the investigation for

27

which documentary material was produced under this

28

paragraph and any case or proceeding arising from the

29

investigation, the investigator shall return to the

30

party who produced the material all the material

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1

other than copies made under this paragraph which

2

have not passed into the control of any court or

3

grand jury through introduction into the record of

4

the case or proceeding.

5

(D)  When documentary material has been produced

6

by a party under this paragraph for use in an

7

investigation and no case or proceeding arising

8

therefrom has been instituted within a reasonable

9

time after completion of the examination and analysis

10

of all evidence assembled in the course of the

11

investigation, the party shall be entitled, upon

12

written demand made upon the Attorney General, to the

13

return of all documentary material, other than copies

14

made under this paragraph, produced by the party.

15

(vii)  Whenever a person or enterprise fails to

16

comply with a civil investigative demand duly served upon

17

him under this paragraph or whenever satisfactory copying

18

or reproduction of the material cannot be done and the

19

party refuses to surrender the material, the Attorney

20

General may file, in the court of common pleas, for a

21

county in which the party resides or transacts business,

22

and serve upon the party a petition for an order of the

23

court for the enforcement of this paragraph, except that

24

if the person transacts business in more than one county

25

the petition shall be filed in the county in which the

26

party maintains its principal place of business.

27

(viii)  Within 20 days after the service of the

28

demand upon a person or enterprise, or at any time before

29

the return date specified in the demand, whichever period

30

is shorter, the party may file, in the court of common

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1

pleas of the county within which the party resides or

2

transacts business, and serve upon the Attorney General a

3

petition for an order of the court modifying or setting

4

aside the demand. The time allowed for compliance with

5

the demand in whole or in part as deemed proper and

6

ordered by the court shall not run during the pendency of

7

the petition in the court. The petition shall specify

8

each ground upon which the petitioner relies in seeking

9

the relief, and may be based upon a failure of the demand

10

to comply with the provisions of this paragraph or upon a

11

constitutional or other legal right or privilege of the

12

party.

13

(ix)  When the Attorney General is in custody or

14

control of documentary material delivered by a party in

15

compliance with a demand, the party may file, in the

16

court of common pleas of the county within which the

17

documentary material was delivered, and serve upon the

18

Attorney General a petition for an order of the court

19

requiring the performance of a duty imposed by this

20

paragraph.

21

(x)  Whenever a petition is filed in a court of

22

common pleas under this paragraph, the court shall have

23

jurisdiction to hear and determine the matter so

24

presented, and, after a hearing at which all parties are

25

represented, to enter an order as may be required to

26

carry into effect the provisions of this paragraph.

27

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

28

Fifth Amendment privilege against self-incrimination, to

29

comply with a civil investigative demand issued under

30

paragraph (2), the Attorney General may invoke the provisions

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1

of 42 Pa.C.S. § 5947 (relating to immunity of witnesses).

2

(j)  Service on State or local authorities.--With respect to

3

a State or local government that is named as a coplaintiff with

4

the United States in an action brought under this act, a seal on

5

the action ordered by the court under section 302(b) shall not

6

preclude the United States or the person bringing the action

7

from serving the complaint, any other pleasings, or the written

8

disclosure of substantially all material evidence and

9

information possessed by the person bringing the action on the

10

law enforcement authorities that are authorized under the law of

11

this Commonwealth or local government to investigate and

12

prosecute the actions on behalf of the governments, except that

13

the seal applies to the law enforcement authorities served to

14

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

15

action.

16

(k)  Information sharing.--Information obtained by the

17

Attorney General or a designee of the Attorney General under

18

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

19

Attorney General or designee determines it is necessary as part

20

of an investigation under this act.

21

Section 303.  Limitation of actions; prior activities; burden of

22

proof.

23

(a)  Statute of limitations.--A civil action under section

24

302 may not be brought more than ten years after the date on

25

which the violation was committed.

26

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

27

302, the Commonwealth or the qui tam plaintiff shall be required

28

to prove all essential elements of the cause of action,

29

including damages, by a preponderance of the evidence.

30

(c)  Estoppel.--Notwithstanding any other provision of law, a

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1

guilty verdict rendered in a criminal proceeding charging false

2

statements or fraud, whether upon a verdict after trial or upon

3

a plea of guilty or nolo contendere, shall estop the defendant

4

from denying the essential elements of the offense in any action

5

which involves the same transaction as in the criminal

6

proceeding and which is brought under section 302(a) or (b).

7

(d)  Intervention by the Commonwealth.--If the Commonwealth

8

elects to intervene and proceed with an action brought under

9

section 302(b), the Commonwealth may file its own complaint or

10

amend the complaint of a person who has brought an action under

11

section 302(b) to clarify or add detail to the claims in which

12

the Commonwealth is intervening and to add any additional claims

13

with respect to which the Commonwealth contends it is entitled

14

to relief. For statute of limitations purposes, any such

15

Commonwealth pleading shall relate back to the filing date of

16

the complaint of the person who originally brought the action,

17

to the extent that the claim of the Commonwealth arises out of

18

the conduct, transactions or occurrences set forth, or attempted

19

to be set forth, in the prior complaint of that person.

20

Section 304.  Remedies under other laws; severability of

21

provisions; liberality of legislative construction.

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.--This chapter

27

shall be liberally construed and applied to promote the public

28

interest. 

29

Section 305.  Regulations.

30

(a)  General rule.--The Attorney General shall have the power

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1

and authority to promulgate rules and regulations which may be

2

necessary to carry out the purposes set forth in this chapter.

3

(b)  Guidelines.--In order to facilitate the speedy

4

implementation of this chapter, the Attorney General shall have

5

the power and authority to promulgate, adopt and use guidelines

6

which shall be published in the Pennsylvania Bulletin. The

7

guidelines shall not be subject to review under section 205 of

8

the act of July 31, 1968 (P.L.769, No.240), referred to as the

9

Commonwealth Documents Law; sections 204(b) and 301(10) of the

10

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

11

Commonwealth Attorneys Act; or the act of June 25, 1982

12

(P.L.633, No.181), known as the Regulatory Review Act. The

13

guidelines shall be effective for not more than two years from

14

the effective date of this chapter. After the expiration of the

15

two-year period, the guidelines shall be promulgated as

16

regulations.

17

CHAPTER 21

18

MISCELLANEOUS PROVISIONS

19

Section 2101.  Effective date.

20

This act shall take effect in 60 days.

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