HB 2051 — An Act amending Title 71 (State Government) of the Pennsylvania Consolidated Statutes, providing for liability for false claims, for adoption of congressional intent of the Federal False Claims Act, for damages, costs and civil penalties, for powers of Attorney General, for qui tam actions and for civil investigative demands.

PRINTER'S NO.   2629

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2051
                                                  Session of
                                                    2025

     INTRODUCED BY GROVE, JAMES, M. JONES, GILLEN AND KLUNK,
        NOVEMBER 19, 2025

     REFERRED TO COMMITTEE ON JUDICIARY, NOVEMBER 19, 2025


                                       AN ACT
 1   Amending Title 71 (State Government) of the Pennsylvania
 2      Consolidated Statutes, providing for liability for false
 3      claims, for adoption of congressional intent of the Federal
 4      False Claims Act, for damages, costs and civil penalties, for
 5      powers of Attorney General, for qui tam actions and for civil
 6      investigative demands.
 7      The General Assembly of the Commonwealth of Pennsylvania
 8   hereby enacts as follows:
 9      Section 1.    Title 71 of the Pennsylvania Consolidated
10   Statutes is amended by adding a part to read:
11                                   PART XXVII
12                          FINANCES OF STATE GOVERNMENT
13   Chapter
14      61.    (Reserved)
15      63.    False Claims Against Commonwealth
16                                   CHAPTER 61
17                                   (Reserved)
18                                   CHAPTER 63
19                     FALSE CLAIMS AGAINST COMMONWEALTH
20   Subchapter
 1      A.     Preliminary Provisions
 2      B.     False Claims
 3                                    SUBCHAPTER A
 4                               PRELIMINARY PROVISIONS
 5   Sec.
 6   6301.   Short title of chapter.
 7   6302.   Declaration of policy.
 8   6303.   Definitions.
 9   § 6301.    Short title of chapter.
10      This chapter shall be known and may be cited as the
11   Commonwealth Fraud Prevention Act.
12   § 6302.    Declaration of policy.
13      The General Assembly declares that this chapter adopts the
14   intent of the United States Congress in enacting the Federal
15   False Claims Act (Public Law 97-258, 31 U.S.C. § 3729 et seq.).
16   § 6303.    Definitions.
17      The following words and phrases when used in this chapter
18   shall have the meanings given to them in this section unless the
19   context clearly indicates otherwise:
20      "Claim."      As follows:
21             (1)   A request or demand for money or property, whether
22      under contract or otherwise and regardless of whether the
23      Commonwealth has title to the money or property, that is
24      presented, submitted or otherwise made to:
25                   (i)    An employee, officer or agent of the
26             Commonwealth.
27                   (ii)    A contractor, grantee or other recipient, and
28             any portion of the money or property will be spent or
29             used on the Commonwealth's behalf or to advance a program
30             or interest of the Commonwealth, and the Commonwealth:

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 1                       (A)   provides or has provided any portion of the
 2                money or property requested or demanded; or
 3                       (B)   will reimburse the contractor, grantee or
 4                other recipient for any portion of the money or
 5                property which is requested or demanded.
 6          (2)   The term does not include requests or demands for
 7      money or property that the Commonwealth has paid to an
 8      individual as compensation for employment or as an income
 9      subsidy with no restrictions on the individual's use of the
10      money or property.
11          (3)   To the extent it is not connected to a request or
12      demand for money or property, a filing with a Commonwealth
13      agency pursuant to the Commonwealth's insurance laws shall
14      not constitute a claim.
15      "Designated district attorney."         A district attorney
16   designated by the Attorney General under section 6312(a)(2)
17   (relating to Attorney General investigations and prosecutions
18   and civil actions).
19      "Designee."      Any of the following individuals designated by
20   the Attorney General to perform duties under this chapter:
21          (1)   An attorney of the Office of Attorney General.
22          (2)   A designated district attorney.
23          (3)   An attorney from a designated district attorney's
24      office.
25      "Knowing" or "knowingly."       As follows:
26          (1)   When a person, with respect to information, does any
27      of the following:
28                (i)    Has actual knowledge of the information.
29                (ii)    Acts in deliberate ignorance of the truth or
30          falsity of the information.

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 1                (iii)   Acts in reckless disregard of the truth or
 2          falsity of the information.
 3          (2)   Proof of specific intent to defraud is not required.
 4      "Legal claim."     A claim for relief at law or equity, whether
 5   contemplated or asserted, including any claim, demand, account,
 6   note or any other cause of action or liability.
 7      "Material."   A natural tendency to influence, or be capable
 8   of influencing, the payment or receipt of money or property.
 9      "Obligation."     An established duty, whether or not fixed,
10   arising from any of the following:
11          (1)   An express or implied contractual relationship.
12          (2)   An express or implied grantor-grantee relationship.
13          (3)   An express or implied licensor-licensee
14      relationship.
15          (4)   A fee-based or similar relationship.
16          (5)   A statute or regulation.
17          (6)   The retention of an overpayment.
18      "Official use."     A use that is consistent with the law and
19   the regulations and policies of the Office of Attorney General,
20   including the following:
21          (1)   Use in connection with internal memoranda and
22      reports of the Office of Attorney General or designated
23      district attorney.
24          (2)   Communications between the Office of Attorney
25      General or designated district attorney and a Federal, State
26      or local government agency or a contractor of a Federal,
27      State or local government agency, undertaken in furtherance
28      of an investigation or prosecution of an action.
29          (3)   Interviews of a qui tam plaintiff or other witness.
30          (4)   Oral examinations.

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 1             (5)   Depositions.
 2             (6)   Preparation for and response to civil discovery
 3      requests.
 4             (7)   Introduction into the record of an action or
 5      proceeding.
 6             (8)   Applications, motions, memoranda and briefs
 7      submitted to a court or other tribunal.
 8             (9)   Communications with investigators, auditors,
 9      consultants and experts, the counsel of other parties,
10      arbitrators and mediators, concerning an investigation,
11      action, case or proceeding.
12      "Original source."     A qui tam plaintiff who:
13             (1)   prior to a public disclosure under section 6312(f)
14      (2), has voluntarily disclosed to the Commonwealth the
15      information on which the allegations or transactions in a
16      claim are based; or
17             (2)   has knowledge that is independent of and materially
18      adds to the publicly disclosed allegations or transactions
19      and who has voluntarily provided the information to the
20      Commonwealth before filing an action under section 6312(b).
21      "Person."     A natural person, corporation, firm, association,
22   organization, partnership, limited liability company, business,
23   trust, business trust, estate or foundation.
24      "Qui tam plaintiff."        A person bringing a civil action under
25   section 6312(b).
26      "State."     In reference to a jurisdiction, the term includes
27   the District of Columbia, the Commonwealth of Puerto Rico, the
28   Virgin Islands and all other insular territories of the United
29   States.
30                                   SUBCHAPTER B

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 1                                     FALSE CLAIMS
 2   Sec.
 3   6311.    Acts subjecting persons to liability and damages.
 4   6312.    Attorney General investigations and prosecutions and
 5                   civil actions.
 6   6313.    Civil investigative demands.
 7   6314.    Access to and sharing of information.
 8   6315.    Deposit of Commonwealth's share of proceeds.
 9   6316.    Annual report.
10   6317.    Statute of limitations, burden of proof and estoppel.
11   6318.    Certain rules, policies and agreements prohibited.
12   6319.    Relief from retaliatory actions.
13   6320.    Actions and remedies under other laws.
14   6321.    Qualification of chapter for increased share of
15                   recoveries.
16   6322.    Rules of procedure.
17   6323.    Trial by jury.
18   6324.    Implementation.
19   6325.    Jurisdiction and Attorney General as relator in false
20                   claims actions.
21   6326.    Expiration.
22   § 6311.    Acts subjecting persons to liability and damages.
23      (a)    Liability.--Except as provided in subsection (b), a
24   person shall be liable to the Commonwealth for three times the
25   amount of damages that the Commonwealth sustains, plus a civil
26   penalty in an amount determined under subsection (d) for each
27   violation, if the person commits any of the following acts:
28             (1)   Knowingly presents or causes to be presented a false
29      or fraudulent claim for payment or approval.
30             (2)   Knowingly makes, uses or causes to be made or used,

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 1    a false record or statement material to a false or fraudulent
 2    claim.
 3        (3)   Has possession, custody or control of property or
 4    money used or to be used by the Commonwealth and knowingly
 5    delivers or causes to be delivered less than all of the money
 6    or property.
 7        (4)   Is authorized to make or deliver a document
 8    certifying receipt of property used or to be used by the
 9    Commonwealth and, intending to defraud the Commonwealth,
10    makes or delivers a receipt without completely knowing that
11    the information on the receipt is true.
12        (5)   Knowingly buys or receives as a pledge of an
13    obligation or debt, public property from an officer or
14    employee of the Commonwealth who lawfully may not sell or
15    pledge the property.
16        (6)   Knowingly makes, uses or causes to be made or used a
17    false record or statement material to an obligation to pay or
18    transmit money or property to the Commonwealth or knowingly
19    conceals, or knowingly and improperly avoids or decreases, an
20    obligation to pay or transmit money or property to the
21    Commonwealth.
22        (7)   Knowingly fails to disclose a fact, event or
23    occurrence material to an obligation to pay or transmit money
24    or property to the Commonwealth.
25        (8)   Is a beneficiary of an inadvertent submission of a
26    false claim, subsequently discovers the falsity of the claim
27    and fails to disclose the false claim to the Commonwealth
28    within a reasonable time after discovery of the false claim.
29        (9)   Conspires to commit a violation of paragraph (1),
30    (2), (3), (4), (5), (6), (7) or (8).

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 1      (b)   Damages limitation.--Notwithstanding the damages
 2   provision of subsection (a), the court may assess not less than
 3   two times the amount of damages the Commonwealth sustains from a
 4   violation of subsection (a) if the court finds all of the
 5   following:
 6            (1)   The person committing the violation furnished the
 7      Commonwealth officials who are responsible for investigating
 8      false claims violations with all information known to that
 9      person about the violation within 30 days after the date on
10      which the person first obtained the information.
11            (2)   The person fully cooperated with an investigation by
12      the Commonwealth.
13            (3)   At the time the person furnished the Commonwealth
14      with information about the violation, no criminal
15      prosecution, civil action or administrative action had
16      commenced with respect to the violation, and the person did
17      not have actual knowledge of the existence of an
18      investigation into the violation.
19      (c)   Commonwealth costs.--A person who is liable for damages
20   or penalties under subsection (a) shall also be liable to the
21   Commonwealth for the reasonable costs of investigating and
22   prosecuting violations of subsection (a), including reasonable
23   costs to the Office of Attorney General and, if applicable, to a
24   designated district attorney under section 6312(a)(2) (relating
25   to Attorney General investigations and prosecutions and civil
26   actions).
27      (d)   Adjustment of penalties.--
28            (1)   The upper and lower limits on civil penalties
29      imposed under subsection (b) shall be equal to, and shall
30      adjust consistently with, the civil penalty limits imposed

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 1      under 31 U.S.C. § 3729(a)(1) (relating to false claims), as
 2      the limits under that provision are periodically adjusted by
 3      the Federal Civil Penalties Inflation Adjustment Act of 1990
 4      (Public Law 101-410, 28 U.S.C. § 2461 note).
 5             (2)   The Office of Attorney General shall transmit a
 6      notice of any adjustment under this subsection to the
 7      Legislative Reference Bureau for publication in the next
 8      available issue of the Pennsylvania Bulletin.
 9      (e)    Exemption from disclosure.--The Office of Attorney
10   General and, if applicable, a designated district attorney's
11   office shall be exempt from disclosing information under the act
12   of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know
13   Law, that is furnished under subsection (b) or accessed or
14   shared under section 6314(a) (relating to access to and sharing
15   of information).
16   § 6312.    Attorney General investigations and prosecutions and
17                   civil actions.
18      (a)    Responsibilities.--
19             (1)   The Attorney General shall represent the
20      Commonwealth with respect to all matters arising under this
21      chapter and may investigate a violation of section 6311
22      (relating to acts subjecting persons to liability and
23      damages). If the Attorney General finds that a person has
24      violated or is violating section 6311, the Attorney General
25      may bring a civil action under this section against that
26      person for violating section 6311.
27             (2)   The Attorney General may enter into an agreement
28      with a district attorney to designate the district attorney
29      to serve as the Attorney General's designee, investigate a
30      violation of section 6311 and bring a civil action under this

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 1    section against a person that has violated or is violating
 2    section 6311. The Attorney General at any time may rescind
 3    the designation made under this paragraph.
 4          (3)   Nothing in section 1407 of the act of June 13, 1967
 5    (P.L.31, No.21), known as the Human Services Code, shall be
 6    construed to limit the Attorney General's authority to
 7    investigate or prosecute violations of section 6311.
 8    (b)   Action by qui tam plaintiff.--
 9          (1)   A qui tam plaintiff may bring a civil action for a
10    violation of section 6311 for the qui tam plaintiff and for
11    the Commonwealth in the name of the Commonwealth. Once filed,
12    the action may be dismissed only if the court and the
13    Attorney General give written consent to the dismissal and
14    their reasons for consenting.
15          (2)   A copy of the complaint and written disclosure of
16    substantially all material evidence and information the qui
17    tam plaintiff possesses shall be served promptly on the
18    Attorney General as provided for in the Pennsylvania Rules of
19    Civil Procedure or applicable court rule. The complaint shall
20    be filed in camera and shall remain under seal for at least
21    120 days and shall not be served on the defendant until the
22    court orders the service. The Commonwealth may elect to
23    intervene and proceed with the action within 120 days after
24    the Commonwealth receives the complaint and the material
25    evidence and information.
26          (3)   Upon motion of the Commonwealth, the court, for good
27    cause shown, shall extend the time during which the complaint
28    remains sealed under paragraph (2). The motion may be
29    supported by affidavits or other submissions in camera. The
30    defendant shall not be required to respond to a complaint

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 1      filed under this section until the complaint is unsealed and
 2      served upon the defendant under the Pennsylvania Rules of
 3      Civil Procedure or applicable court rule.
 4            (4)   Before the expiration of the 120-day period or any
 5      extensions obtained under paragraph (3), the Commonwealth
 6      shall do either of the following:
 7                  (i)    Proceed with the action.
 8                  (ii)    Notify the court that the Commonwealth declines
 9            to take over the action, in which case the qui tam
10            plaintiff shall have the right to conduct the action.
11      (c)   Intervention restricted to Commonwealth.--When a qui tam
12   plaintiff brings an action under subsection (b), no person other
13   than the Commonwealth may intervene or bring a related action
14   based on the facts underlying the pending action.
15      (d)   Rights of parties to qui tam actions.--
16            (1)   If the Commonwealth proceeds with the action, the
17      Commonwealth shall have the primary responsibility for
18      prosecuting the action and shall not be bound by an act of
19      the qui tam plaintiff. The qui tam plaintiff shall have the
20      right to continue as a party to the action, subject to the
21      limitations specified in paragraphs (2), (3), (4) and (5).
22            (2)   The Commonwealth may move to dismiss the action
23      despite the qui tam plaintiff's objections if the
24      Commonwealth notifies the qui tam plaintiff of the filing.
25      The court may dismiss the action if the court has provided
26      the qui tam plaintiff with an opportunity to oppose the
27      motion at a hearing.
28            (3)   The Commonwealth may settle the action with the
29      defendant despite the qui tam plaintiff's objections if the
30      court determines, after a hearing, that the proposed

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 1    settlement is fair, adequate and reasonable under the
 2    circumstances. Upon a showing of good cause, the hearing may
 3    be held in camera. Upon motion of the Commonwealth, the
 4    court, for good cause shown, shall order a partial lifting of
 5    the seal to facilitate the investigative process or
 6    settlement.
 7        (4)   Upon the Commonwealth's showing that the qui tam
 8    plaintiff's unrestricted participation during the course of
 9    the action would interfere with or unduly delay the
10    Commonwealth's prosecution of the case or would be
11    repetitious, irrelevant or for purposes of harassment, the
12    court may, in its discretion, impose limitations on the qui
13    tam plaintiff's participation by:
14              (i)    limiting the number of witnesses the qui tam
15        plaintiff may call;
16              (ii)    limiting the length of witness testimony;
17              (iii)    limiting the qui tam plaintiff's cross-
18        examination of witnesses; or
19              (iv)    otherwise limiting the qui tam plaintiff's
20        participation in the action.
21        (5)   Upon the defendant's showing that the qui tam
22    plaintiff's unrestricted participation in the action would be
23    for purposes of harassment or would cause the defendant undue
24    burden or unnecessary expense, the court may limit the qui
25    tam plaintiff's participation in the action.
26        (6)   If the Commonwealth elects not to proceed with the
27    action, the qui tam plaintiff shall have the right to conduct
28    the action. If the Commonwealth requests, the Commonwealth
29    shall be served with copies of all pleadings filed in the
30    action and shall be supplied, at the Commonwealth's expense,

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 1    with copies of all deposition transcripts and other discovery
 2    produced in the action. Without limiting the qui tam
 3    plaintiff's status and rights, the court shall permit the
 4    Commonwealth to intervene at a later date upon a showing of
 5    good cause.
 6        (7)   Whether or not the Commonwealth proceeds with the
 7    action, upon the Commonwealth's showing, in camera, that
 8    certain actions of discovery by the qui tam plaintiff would
 9    interfere with the Commonwealth's investigation or
10    prosecution of a criminal or civil matter arising out of the
11    same facts, the court may stay the discovery for a period of
12    not more than 60 days. The court may extend the 60-day period
13    upon the Commonwealth's further showing, in camera, that the
14    Commonwealth has pursued the criminal or civil investigation
15    or proceedings with reasonable diligence and that the
16    discovery proposed in the civil action will interfere with
17    the ongoing criminal or civil investigations or proceedings.
18        (8)   Notwithstanding subsection (b), the Commonwealth may
19    elect to pursue its legal claims through an alternate remedy
20    available to the Commonwealth, including an administrative
21    proceeding to determine a civil money penalty. If the
22    alternate remedy is pursued in another proceeding, the qui
23    tam plaintiff shall have the same rights in the proceeding as
24    if the action had continued under this section. A finding of
25    fact or conclusion of law made in the other proceeding that
26    has become final shall be conclusive on all parties to an
27    action under this section. A finding or conclusion is final
28    if it has been finally determined on appeal to the
29    appropriate court of the Commonwealth, if the time for filing
30    the appeal regarding the finding or conclusion has expired

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 1    without an appeal having been filed or if the finding or
 2    conclusion is not subject to judicial review.
 3    (e)   Award to qui tam plaintiff.--
 4          (1)   If the Commonwealth proceeds with an action brought
 5    by a qui tam plaintiff, the qui tam plaintiff shall, subject
 6    to the provisions of this subsection, receive at least 15%
 7    but not more than 25% of the proceeds of the action or
 8    settlement of the legal claim, depending upon the extent to
 9    which either or both the qui tam plaintiff and the qui tam
10    plaintiff's counsel substantially contributed to the
11    prosecution of the action.
12          (2)   If the court finds that the action is based
13    primarily on disclosures of specific information, other than
14    information provided by the qui tam plaintiff, relating to
15    allegations or transactions in a criminal, civil or
16    administrative hearing to which the Commonwealth is a party,
17    or in a Federal, State or local legislative or other
18    governmental hearing, audit or investigation or from the news
19    media, the court may award a sum it considers appropriate,
20    taking into account the information's significance and the
21    qui tam plaintiff's role in advancing the action, but in no
22    case more than 10% of the proceeds of the action or
23    settlement.
24          (3)   If the Commonwealth does not proceed with an action
25    under this section, the qui tam plaintiff shall receive at
26    least 25% but not more than 30% of the proceeds of the action
27    or settlement of the legal claim, as the court deems
28    reasonable.
29          (4)   Whether or not the Commonwealth proceeds with the
30    action, if the court finds that the qui tam plaintiff planned

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 1    and initiated the violation of section 6311 upon which the
 2    action was brought, the following shall apply:
 3              (i)    Subject to subparagraph (ii), the court may, to
 4        the extent it considers appropriate, reduce the share of
 5        the proceeds of the action or settlement of the legal
 6        claim which the qui tam plaintiff would otherwise receive
 7        under paragraph (1), (2) or (3), taking into account the
 8        qui tam plaintiff's role in advancing the action and any
 9        relevant circumstances pertaining to the violation.
10              (ii)   If the qui tam plaintiff is convicted of
11        criminal conduct arising from the qui tam plaintiff's
12        role in the violation, the qui tam plaintiff shall be
13        dismissed from the civil action and shall not receive a
14        share of the proceeds of the action. The dismissal shall
15        not prejudice the Commonwealth's right to continue the
16        action.
17        (5)   An award to a qui tam plaintiff shall be made from
18    the proceeds of the action or settlement of the legal claim.
19    The qui tam plaintiff also shall receive an amount for
20    reasonable expenses which the court finds were necessarily
21    incurred, plus reasonable attorney fees and costs. The
22    expenses, fees and costs shall be awarded against the
23    defendant.
24        (6)   If the Commonwealth does not proceed with the action
25    and the qui tam plaintiff conducts the action, the court may
26    award to the defendant reasonable attorney fees and expenses
27    if the defendant prevails in the action and the court finds
28    that the qui tam plaintiff's legal claim was clearly
29    frivolous, clearly vexatious or brought primarily for
30    purposes of harassment.

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 1    (f)   Certain actions barred.--
 2          (1)   A court does not have jurisdiction over an action
 3    filed under this section against the Governor, the Lieutenant
 4    Governor, the Attorney General, the Auditor General, the
 5    Treasurer, a cabinet member, a deputy secretary, a member of
 6    the General Assembly or a member of the judiciary if the
 7    action is based on evidence or information known to the
 8    Commonwealth when the action was brought.
 9          (2)   Subject to paragraph (3), the court shall dismiss an
10    action or legal claim brought under subsection (b) if
11    substantially the same allegations or transactions alleged in
12    the action or legal claim were publicly disclosed in:
13                (i)    the news media;
14                (ii)    a criminal, civil or administrative hearing in
15          which the Commonwealth is or was a party; or
16                (iii)    a Federal, State or local legislative or other
17          governmental hearing, report, audit or investigation.
18          (3)   The court may not dismiss an action under paragraph
19    (2) if:
20                (i)    the Attorney General or a designated district
21          attorney brought action;
22                (ii)    the Commonwealth opposes dismissal; or
23                (iii)    the qui tam plaintiff is an original source of
24          the information publicly disclosed.
25          (4)   A qui tam plaintiff may not bring an action under
26    this section which is based upon allegations or transactions
27    that are the subject of a civil suit or an administrative
28    civil money penalty proceeding in which the Commonwealth is
29    already a party.
30    (g)   Commonwealth not liable for certain expenses.--The

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 1   Commonwealth is not liable for expenses that a qui tam plaintiff
 2   incurs in bringing an action under this section.
 3      (h)    (Reserved).
 4      (i)    Cooperation by agencies.--Commonwealth agencies shall
 5   cooperate in the investigation and prosecution of false claims
 6   under this section, whether the investigation is conducted or a
 7   suit is brought by the Attorney General, a designated district
 8   attorney or a qui tam plaintiff.
 9      (j)    Nature of action.--An action under this section is an
10   action brought by the Commonwealth, as provided in section
11   204(c) of the act of October 15, 1980 (P.L.950, No.164), known
12   as the Commonwealth Attorneys Act.
13   § 6313.    Civil investigative demands.
14      (a)    Issuance and service.--
15             (1)   If the Attorney General or, for purposes of this
16      subsection, the Attorney General's designee, has reason to
17      believe that a person may be in possession, custody or
18      control of documentary material or information relevant to a
19      false claims investigation under this chapter, the Attorney
20      General or designee may, before commencing a civil action
21      under section 6312(a) (relating to Attorney General
22      investigations and prosecutions and civil actions) or making
23      an election whether to intervene in an action brought under
24      section 6312(b), issue in writing and cause to be served upon
25      the person a civil investigative demand requiring the person
26      to:
27                   (i)    produce documentary material for inspection and
28             copying;
29                   (ii)   answer in writing written interrogatories with
30             respect to documentary material or information;

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 1                (iii)    give oral testimony concerning documentary
 2          material or information; or
 3                (iv)    furnish any combination of materials, answers
 4          or testimony.
 5          (2)   If a civil investigative demand is an express demand
 6    for a product of discovery, the Attorney General or designee
 7    shall:
 8                (i)    Cause to be served in any manner authorized by
 9          this subsection a copy of the demand upon the person from
10          whom or which the discovery was obtained.
11                (ii)    Notify the demand issuee of the date on which
12          the copy was served.
13    (b)   Contents and deadlines.--
14          (1)   A civil investigative demand shall state the nature
15    of the conduct constituting the alleged violation of this
16    chapter that is under investigation and the applicable
17    provisions of this chapter alleged to be violated.
18          (2)   If the civil investigative demand is for the
19    production of documentary material, the demand shall:
20                (i)    Describe each class of documentary material to
21          be produced with definiteness and certainty as to permit
22          the material to be fairly identified.
23                (ii)    Prescribe a return date for each class that
24          will provide a reasonable time period within which the
25          material so demanded may be assembled and made available
26          for inspection and copying.
27                (iii)    Identify the false claims investigator to whom
28          the material shall be available.
29          (3)   If the civil investigative demand is for answers to
30    written interrogatories, the demand shall:

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 1              (i)    Describe with specificity the written
 2        interrogatories to be answered.
 3              (ii)    Prescribe dates on which the answers to the
 4        written interrogatories shall be submitted.
 5              (iii)    Identify the false claims investigator to whom
 6        the answers shall be submitted.
 7        (4)     If the civil investigative demand is for oral
 8    testimony, the demand shall:
 9              (i)    Prescribe a date, time and place at which the
10        oral testimony shall be given.
11              (ii)    Identify a false claims investigator who shall
12        conduct the examination and the custodian to whom the
13        transcript of the examination shall be submitted.
14              (iii)    Specify that attendance and testimony are
15        necessary to the conduct of the false claims
16        investigation.
17              (iv)    Describe the general purpose for which the
18        demand is being issued and general nature of the
19        testimony, including the primary areas of inquiry, which
20        will be taken under the demand.
21        (5)     A civil investigative demand shall contain the
22    following statement printed at the beginning of the demand:
23    "You have the right to seek the assistance of an attorney,
24    who may represent you in all phases of the investigation of
25    which this civil investigative demand is a part."
26        (6)     A civil investigative demand that is an express
27    demand for a product of discovery shall not be returned or
28    returnable until 20 days after a copy of the demand has been
29    served upon the person from whom or which the discovery was
30    obtained.

20250HB2051PN2629                   - 19 -
 1          (7)   The date prescribed for commencement of oral
 2    testimony under a civil investigative demand shall not be
 3    less than seven days after the date on which the demand is
 4    served, unless the Attorney General or designee determines
 5    that exceptional circumstances exist and warrant commencing
 6    testimony within a lesser time period.
 7          (8)   The Attorney General, or designee, may not authorize
 8    the issuance of more than one civil investigative demand for
 9    the same person's oral testimony unless:
10                (i)    the person requests otherwise; or
11                (ii)    the Attorney General or designee notifies the
12          person in writing that an additional demand for oral
13          testimony is necessary.
14    (c)   Protected material or information.--
15          (1)   A civil investigative demand may not require the
16    production of documentary material, the submission of answers
17    to written interrogatories or the giving of oral testimony if
18    the material, answers or testimony would be protected from
19    disclosure under the standards applicable to:
20                (i)    subpoenas or subpoenas duces tecum issued by a
21          court of this Commonwealth to aid in a grand jury
22          investigation; or
23                (ii)    discovery under the Pennsylvania Rules of Civil
24          Procedure or other applicable court rule, to the extent
25          that the application of the standards to a demand is
26          appropriate and consistent with the provisions and
27          purposes of this section.
28          (2)   Except if a statute explicitly precludes the
29    superseding effect imposed by this paragraph, a civil
30    investigative demand that is an express demand for a product

20250HB2051PN2629                     - 20 -
 1      of discovery supersedes an inconsistent order, rule or
 2      provision of law, other than in this section, that prevents
 3      or restrains disclosure of the product of discovery to any
 4      person.
 5            (3)   A person's disclosure of a product of discovery
 6      under an express demand does not constitute a waiver of any
 7      right or privilege to resist discovery of trial preparation
 8      materials that the person may be entitled to invoke.
 9      (d)   Service and jurisdiction.--Except as otherwise provided,
10   the following apply to civil investigative demands issued under
11   this section and petitions filed under subsection (j):
12            (1)   A civil investigative demand may be served by a
13      false claims investigator, a law enforcement officer or
14      another individual authorized by law to serve process in the
15      jurisdiction where the demand is served.
16            (2)   A petition may be served by any person authorized to
17      serve process under the Pennsylvania Rules of Civil Procedure
18      or other applicable court rule.
19            (3)   A civil investigative demand or petition may be
20      served upon a person consistent with and in the manner
21      prescribed by 42 Pa.C.S. Ch. 53 (relating to bases of
22      jurisdiction and interstate and international procedure) and
23      the Pennsylvania Rules of Civil Procedure or other applicable
24      court rule, for personal service inside or outside this
25      Commonwealth.
26            (4)   To the extent that the courts of this Commonwealth
27      can assert jurisdiction over a person outside this
28      Commonwealth, a court with jurisdiction over an action filed
29      under this chapter shall have the same jurisdiction to take
30      action respecting the person's compliance with this section

20250HB2051PN2629                    - 21 -
 1    that it would have if the person resided within the court's
 2    jurisdiction.
 3        (5)   A civil investigative demand or petition may be
 4    served upon a legal entity by:
 5              (i)    delivering an executed copy of the demand or
 6        petition to a partner, executive officer, managing agent
 7        or general agent of the legal entity, or to an employee
 8        designated or agent authorized by appointment or law to
 9        receive service of process on behalf of the legal entity;
10              (ii)    delivering an executed copy of the demand or
11        petition to the legal entity's principal office or place
12        of business;
13              (iii)    depositing an executed copy of the demand or
14        petition in the United States mail by registered or
15        certified mail with a return receipt requested, addressed
16        to the legal entity at its principal office or place of
17        business; or
18              (iv)    any other method provided by the Pennsylvania
19        Rules of Civil Procedure or other applicable court rule.
20        (6)   A civil investigative demand or petition may be
21    served upon a natural person by:
22              (i)    delivering an executed copy of the demand or
23        petition to the person;
24              (ii)    depositing an executed copy of the demand or
25        petition in the United States mail by registered or
26        certified mail with a return receipt requested, addressed
27        to the person at the person's residence or principal
28        office or place of business; or
29              (iii)    any other method provided by the Pennsylvania
30        Rules of Civil Procedure or other applicable court rule.

20250HB2051PN2629                   - 22 -
 1          (7)   A verified return by the individual serving a civil
 2    investigative demand or a petition, specifying the manner of
 3    service, shall be proof of service. In the case of service by
 4    registered or certified mail, the return post office receipt
 5    of the demand or petition's delivery shall accompany the
 6    verified return.
 7    (e)   Documentary material.--
 8          (1)   The production of documentary material shall be made
 9    under a written and verified certificate, in the form a civil
10    investigative demand designates:
11                (i)    if the demand issuee is a natural person, by the
12          demand issuee; or
13                (ii)    if the demand issuee is not a natural person,
14          by an individual who has knowledge of facts and
15          circumstances relating to the production and is
16          authorized to act on the demand issuee's behalf.
17          (2)   The certificate shall state that all the documentary
18    material required by the demand and in the demand issuee's
19    possession, custody or control has been produced and made
20    available to the false claims investigator identified in the
21    demand.
22          (3)   A demand issuee shall make demanded material
23    available for inspection and copying to the false claims
24    investigator identified in the demand:
25                (i)    at the demand issuee's principal place of
26          business;
27                (ii)    at another place as the false claims
28          investigator and the demand issuee thereafter may agree
29          and prescribe in writing; or
30                (iii)    as the court may direct under this section.

20250HB2051PN2629                     - 23 -
 1          (4)   The documentary material shall be made available on
 2    the return date specified in the demand or on a later date as
 3    the false claims investigator may prescribe in writing. The
 4    demand issuee may, upon written agreement with the false
 5    claims investigator, substitute copies for originals of all
 6    or any part of the material.
 7          (5)   If the demand issuee objects to the production of
 8    any portion of the required documentary material or otherwise
 9    withholds any portion of the material, the demand issuee
10    shall with particularity state the reasons for the objection
11    or withholding and identify all withheld material.
12    (f)   Interrogatories.--
13          (1)   Each interrogatory in a civil investigative demand
14    shall be answered separately and fully in writing under oath
15    and shall be submitted under a verified certificate, in the
16    form the demand designates, stating that all information
17    required by the demand and in the demand issuee's possession,
18    custody, control or knowledge has been submitted:
19                (i)    if the demand issuee is a natural person, by the
20          demand issuee; or
21                (ii)   if the demand issuee is not a natural person,
22          by the individuals responsible for answering each
23          interrogatory.
24          (2)   If the demand issuee objects to an interrogatory or
25    any portion of an interrogatory, or otherwise withholds
26    information, the demand issuee shall state with particularity
27    the reasons for the objection or withholding and identify all
28    withheld information.
29    (g)   Oral examinations.--
30          (1)   The examination of a person under a civil

20250HB2051PN2629                     - 24 -
 1    investigative demand for oral testimony shall be taken before
 2    an officer authorized to administer oaths and affirmations by
 3    the laws of this Commonwealth or of the place where the
 4    examination is held.
 5        (2)   The officer shall put the witness on oath or
 6    affirmation and, personally or by someone acting under the
 7    officer's direction and in the officer's presence, shall
 8    record the witness's testimony.
 9        (3)   The testimony shall be stenographically transcribed.
10        (4)   When the transcribing is complete, the officer shall
11    promptly transmit a copy of the transcript to the custodian.
12        (5)   This subsection shall not preclude the taking of
13    testimony by any means authorized by, and in a manner
14    consistent with, the Pennsylvania Rules of Civil Procedure or
15    other applicable court rule.
16        (6)   The false claims investigator conducting the
17    examination shall exclude from the place where the
18    examination is held all persons except the following:
19              (i)    The person giving the testimony.
20              (ii)    The attorney for the person giving the
21        testimony.
22              (iii)    An attorney for the Commonwealth.
23              (iv)    The officer before whom the testimony is to be
24        taken.
25              (v)    The court reporter taking the testimony.
26              (vi)    The custodian, if identified in the demand as
27        attending.
28              (vii)    Any other person upon which the person giving
29        the testimony agreed and the attorney for the
30        Commonwealth.

20250HB2051PN2629                   - 25 -
 1        (7)    A person's oral testimony taken under a civil
 2    investigative demand shall be taken in the county or city
 3    within which the person resides, is found or transacts
 4    business, or in a place to which the false claims
 5    investigator and the person otherwise agree.
 6        (8)    When the transcript of testimony is completed, the
 7    false claims investigator or the officer before whom the
 8    testimony is taken shall afford the witness, who may be
 9    accompanied by counsel, a reasonable opportunity to examine
10    and read the transcript, unless the witness waives the
11    reading and examination.
12        (9)    The officer or false claims investigator shall enter
13    and identify on the transcript any changes in form or
14    substance that the witness desires to make with a statement
15    of the reasons the witness gives for making the changes.
16        (10)   The witness shall sign the transcript after the
17    changes, if any, are made, unless the witness waives the
18    signing in writing, is ill, cannot be found or refuses to
19    sign. If the witness does not sign the transcript within 30
20    days after being afforded a reasonable opportunity to sign
21    it, the officer or false claims investigator shall sign the
22    transcript and state on the record the fact of the witness's
23    waiver, illness, absence or refusal to sign, together with
24    the reasons, if any, given for why the witness did not sign
25    the transcript.
26        (11)   The officer before whom the testimony is taken
27    shall certify on the transcript that the witness was sworn by
28    the officer and the transcript is a true record of the
29    witness's testimony, and the officer shall promptly deliver
30    the transcript or send the transcript by registered or

20250HB2051PN2629                 - 26 -
 1      certified mail to the custodian.
 2            (12)   Upon receiving payment of reasonable charges, the
 3      false claims investigator shall furnish a copy of the
 4      transcript to the witness only, except that the Attorney
 5      General or the Attorney General's designee may, for good
 6      cause, limit the witnesses to inspecting the official
 7      transcript.
 8            (13)   A person compelled to appear for oral testimony may
 9      be accompanied, represented and advised by counsel. Counsel
10      may advise the person in confidence with respect to any
11      question asked of the person.
12            (14)   The person or the person's counsel may object on
13      the record to any question, in whole or in part, and shall
14      briefly state for the record the reason for the objection. An
15      objection may be made, received and entered upon the record
16      when it is asserted that the person is entitled to refuse to
17      answer on the grounds of a constitutional or legal right or
18      privilege, including the privilege against self-
19      incrimination. The person may not otherwise object to or
20      refuse to answer any question and may not directly or through
21      counsel otherwise interrupt the oral examination. If a person
22      refuses to answer a question, a petition may be filed with
23      the court under this section for an order compelling the
24      person to answer the question.
25            (15)   A person appearing for oral testimony under a civil
26      investigative demand shall be entitled to the same fees and
27      allowances that are paid to witnesses in the courts of common
28      pleas.
29      (h)   Refusal to comply on self-incrimination privilege
30   grounds.--The Attorney General or, with the Attorney General's

20250HB2051PN2629                    - 27 -
 1   authorization, a designated district attorney may invoke the
 2   provisions of 42 Pa.C.S. § 5947 (relating to immunity of
 3   witnesses) if a person, on the grounds of privilege against
 4   self-incrimination, refuses to:
 5            (1)   furnish documentary material in response to a civil
 6      investigative demand;
 7            (2)   answer an interrogatory in response to a civil
 8      investigative demand;
 9            (3)   answer a question asked during oral examination made
10      under a civil investigative demand; or
11            (4)   otherwise comply with a civil investigative demand.
12      (i)   Custody of documents, answers and transcripts.--
13            (1)   Unless the Attorney General or, if applicable, a
14      designated district attorney designates another person, the
15      false claims investigator identified on a civil investigative
16      demand shall serve as custodian of documentary material,
17      interrogatory answers and oral testimony transcripts received
18      under this section. The Attorney General or, if applicable, a
19      designated district attorney may designate additional persons
20      as the Attorney General determines to be necessary to serve
21      as deputy, alternative or successor custodians.
22            (2)   A false claims investigator who receives documentary
23      material, interrogatory answers or oral testimony transcripts
24      under this section shall:
25                  (i)    if serving as custodian, take possession of the
26            material, answers or transcripts and be responsible for
27            their usage and for the return of documentary material;
28            or
29                  (ii)   if not serving as custodian, transmit the
30            materials, answers or transcripts to the custodian, who

20250HB2051PN2629                       - 28 -
 1        shall take possession and responsibility for the
 2        materials, answers or transcripts.
 3        (3)   The custodian may cause the preparation of copies of
 4    documentary material, interrogatory answers or oral testimony
 5    transcripts as may be required for official use by a false
 6    claims investigator or another officer or employee of the
 7    Office of Attorney General authorized to use the materials,
 8    answers or transcripts in connection with the taking of oral
 9    testimony under this section.
10        (4)   Under reasonable terms and conditions as the
11    Attorney General, or a designated district attorney
12    authorized by the Attorney General, prescribes, a custodian
13    possessing documentary material, interrogatory answers or
14    oral testimony transcripts shall make the material, answers
15    and transcripts available for examination by the person that
16    produced them or by the person's representative.
17        (5)   Notwithstanding 18 Pa.C.S. Ch. 91 (relating to
18    criminal history record information), a designee who is
19    designated or called to appear before a court, grand jury or
20    Commonwealth agency in a case or proceeding may, in
21    connection with the case or proceeding, obtain from the
22    custodian and use any documentary material, interrogatory
23    answers or oral testimony transcripts that the designee
24    determines is required.
25        (6)   Upon the case or proceeding's completion, an
26    attorney shall return to the custodian documentary material,
27    interrogatory answers or oral testimony transcripts that have
28    not passed into the court's, grand jury's or agency's control
29    through introduction into the case or proceeding's record.
30        (7)   Subject to paragraphs (8) and (9), upon the written

20250HB2051PN2629                - 29 -
 1    request of a person that produced documentary material in
 2    connection with a false claims investigation, the custodian
 3    shall return the material.
 4          (8)   The custodian shall return the material only if:
 5                (i)    all cases or proceedings arising out of the
 6          false claims investigation have been completed; or
 7                (ii)    no case or proceeding in which the material may
 8          be used has been commenced within a reasonable time after
 9          completion of the examination and analysis of all
10          documentary material and other information assembled in
11          the course of the false claims investigation.
12          (9)   The custodian shall not be required to return either
13    of the following:
14                (i)    material that has passed into a court, grand
15          jury or Commonwealth agency's control through
16          introduction into a case or proceeding's record; or
17                (ii)    copies furnished to the false claims
18          investigator or made for the Attorney General, or
19          designee, under this subsection.
20    (j)   Judicial proceedings.--
21          (1)   The Commonwealth may file and serve upon a person a
22    petition for a court order enforcing a civil investigative
23    demand if:
24                (i)    the person fails to comply with a demand served
25          upon the person; or
26                (ii)    satisfactory copying or reproduction of the
27          material requested in the demand cannot be done and the
28          person refuses to surrender the material.
29          (2)   A demand issuee who has received a civil
30    investigative demand may file and serve upon the false claims

20250HB2051PN2629                     - 30 -
 1    investigator identified in the demand a petition for a court
 2    order modifying or setting aside the demand.
 3        (3)   If a demand is an express demand for a product of
 4    discovery, the person from whom discovery was obtained may,
 5    upon receipt of the demand, file and serve upon the false
 6    claims investigator identified in the demand a petition for a
 7    court order modifying or setting aside those portions of the
 8    demand requiring production of the product of discovery.
 9        (4)   A petition under paragraph (2) must be filed within:
10              (i)    the earlier of 20 days after the civil
11        investigative demand is served on the person or any time
12        before the return date specified in the demand; or
13              (ii)    a longer period if the false claims
14        investigator so prescribes in writing in the demand.
15        (5)   A petition under paragraph (2) shall specify each
16    ground the petitioner relies on in seeking relief and may be
17    based on either of the following:
18              (i)    failure of the civil investigative demand, or
19        any portion thereof, to comply with this section's
20        provisions; or
21              (ii)    a constitutional or other legal right or
22        privilege of the petitioner.
23        (6)   During the pendency of a petition under paragraph
24    (2), the following shall apply:
25              (i)    The court may stay, as the court deems proper,
26        compliance with all or part of the demand and the running
27        of time allowed for compliance with the demand.
28              (ii)    The petitioner must comply with any portion of
29        the demand that is not sought to be modified or set
30        aside, or otherwise subject to a stay issued by the

20250HB2051PN2629                   - 31 -
 1            court.
 2            (7)   At any time a custodian possesses or is in custody
 3      or control of documentary material, interrogatory answers or
 4      transcripts of oral testimony given under a civil
 5      investigative demand, the following persons may file and
 6      serve upon the custodian a petition for a court order
 7      requiring the custodian to perform a duty imposed on the
 8      custodian by this section:
 9                  (i)    the demand issuee that furnished the material,
10            answers or testimony; or
11                  (ii)   in the case of an express demand for a product
12            of discovery, the person from whom discovery was
13            obtained.
14            (8)   The court shall have jurisdiction to hear and
15      determine a petition filed under this section and, after a
16      hearing at which all parties have the opportunity to be
17      heard, to enter orders as may be required to carry out the
18      provisions of this section.
19            (9)   A final order entered by Commonwealth Court under
20      this section shall be subject to appeal to the Supreme Court
21      under 42 Pa.C.S. § 723(a) (relating to appeals from
22      Commonwealth Court).
23      (k)   Exemption from disclosure.--The Office of Attorney
24   General and, if applicable, a designated district attorney's
25   office, shall be exempt from disclosing under the act of
26   February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law,
27   documentary material, interrogatory answers and oral testimony
28   provided under a civil investigative demand.
29      (l)   Definitions.--For purposes of this section, the
30   following words and phrases shall have the meanings given to

20250HB2051PN2629                       - 32 -
 1   them in this subsection unless the context clearly indicates
 2   otherwise:
 3      "Custodian."     The false claims investigator or other
 4   custodian or a deputy or alternate custodian designated by the
 5   Attorney General under subsection (i).
 6      "Demand issuee."     A person to whom or which a civil
 7   investigative demand is issued or directed.
 8      "Documentary material."     Includes the original or a copy of a
 9   book, record, report, memorandum, paper, communication,
10   tabulation, chart or other document or data compilation stored
11   or accessible through computer or other information retrieval
12   systems, together with appropriate and succinct instructions and
13   all other materials necessary to use or interpret the data
14   compilations, and a product of discovery.
15      "False claims investigation."      An inquiry conducted by a
16   false claims investigator for the purposes of ascertaining
17   whether a person is or has been engaged in a violation of this
18   chapter.
19      "False claims investigator."      An individual charged with the
20   duty of enforcing or carrying out the provisions of this chapter
21   who is:
22             (1)   an attorney or investigator employed by the Office
23      of Attorney General or, if applicable, by a designated
24      district attorney; or
25             (2)   an officer or employee of the Commonwealth acting
26      under the attorney or investigator's direction and
27      supervision in connection with a false claims investigation.
28      "Legal entity."     A person other than a natural person.
29      "Person."     As defined in 1 Pa.C.S. § 1991 (relating to
30   definitions).

20250HB2051PN2629                     - 33 -
 1      "Product of discovery."         The term includes:
 2             (1)   the original or duplicate of a deposition
 3      interrogatory, document, thing, result of the inspection of
 4      land or other property, examination or admission that is
 5      obtained by any method of discovery in a judicial or
 6      administrative proceeding of an adversarial nature;
 7             (2)   a digest, analysis, selection, compilation or
 8      derivation of an item li

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