EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0391*
HOUSE BILL 391
D3, P3, B1 2lr2342
CF SB 114
By: Delegate Bartlett
Introduced and read first time: January 19, 2022
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 22, 2022
CHAPTER ______
AN ACT concerning 1
False Claims – Civil Penalties or Damages – Exceptions Authorization to 2
Recover and Exceptions to General Fund Deposit by Comptroller 3
FOR the purpose of authorizing a governmental entity to recover certain costs and fees of 4
certain actions; requiring that the Comptroller deposit civil penalties or damages 5
collected by the State under the Maryland False Claims Act or under certain 6
provisions of law prohibiting false claims against State health plans and health 7
programs into certain funds or special funds rather than the General Fund of the 8
State under certain circumstances; requiring that funds de posited by the 9
Comptroller under this Act be on a pro rata basis under certain circumstances; 10
establishing the False Claims Fund as a special, nonlapsing fund; requiring interest 11
earnings of the Fund to be credited to the Fund; and generally relating to the 12
Maryland False Claims Act. 13
BY repealing and reenacting, with amendments, 14
Article – General Provisions 15
Section 8–103 and 8–109(c) 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2021 Supplement) 18
BY adding to 19
Article – General Provisions 20
Section 8–109(d) 21
Annotated Code of Maryland 22
(2019 Replacement Volume and 2021 Supplement) 23 2 HOUSE BILL 391
BY repealing and reenacting, with amendments, 1
Article – Health – General 2
Section 2–610(c) 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2021 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – State Finance and Procurement 7
Section 7–302 6–226(a)(2)(i), 7–302, and 7–304 8
Annotated Code of Maryland 9
(2021 Replacement Volume) 10
BY repealing and reenacting, with amendments, 11
Article – State Finance and Procurement 12
Section 6–226(a)(2)(ii)144. and 145. 13
Annotated Code of Maryland 14
(2021 Replacement Volume) 15
BY adding to 16
Article – State Finance and Procurement 17
Section 6–226(a)(2)(ii)146. 18
Annotated Code of Maryland 19
(2021 Replacement Volume) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – General Provisions 23
8–103. 24
(a) If a governmental entity finds that a person has violated or is violating § 25
8–102 of this title, the governmental entity may file a civil action in a court of competent 26
jurisdiction within the State against the person. 27
(b) In filing a civil action under this section, the governmental entity may seek: 28
(1) the penalties provided under § 8–102(c) of this title; AND 29
(2) SUBJECT TO THE GUIDE LINES UNDER § 8–105(B)(4) OF THIS 30
SUBTITLE, COURT COSTS AND ATTO RNEY’S FEES. 31
(c) A governmental entity may not maintain an action under this section if the 32
governmental entity has filed a civil action based on the same underlying act under § 33
2–603 of the Health – General Article or has sought enforcement by the Attorney General 34
under § 11–205 or § 11–205.1 of the State Finance and Procurement Article. 35 HOUSE BILL 391 3
8–109. 1
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 2
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the 3
State under this title into the General Fund of the State. 4
(2) (I) IF A VIOLATION OF THI S TITLE AFFECTS ANY OF THE 5
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 6
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 7
1. A FUND THAT IS NO T SUBJECT TO § 7–302 OF THE 8
STATE FINANCE AND PROCUREMENT ARTICLE; 9
2. A SPECIAL FUND REQUI RING THE REVERSION O F 10
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE 11
FINANCE AND PROCUREMENT ARTICLE; 12
3. A FUND UNDER THE JUR ISDICTION OF THE BOARD OF 13
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 14
4. A FUND UNDER THE JUR ISDICTION OF THE STATE 15
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 16
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 17
THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES 18
COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE GENERAL FUND 19
OF THE STATE ON A PRO RATA B ASIS. 20
(D) (1) THERE IS A FALSE CLAIMS FUND. 21
(2) THE PURPOSE OF THE FUND IS TO SUPPORT THE OP ERATIONS OF 22
THE ATTORNEY GENERAL IN CARRYING O UT THIS TITLE. 23
(3) THE ATTORNEY GENERAL SHALL ADMINIS TER THE FUND. 24
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 25
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 26
(II) THE STATE TREASURER SHALL HOLD THE FUND 27
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 28
(5) THE FUND CONSISTS OF : 29
4 HOUSE BILL 391
(I) ALL ATTORNEY ’S FEES AND COSTS COL LECTED BY THE 1
STATE BY JUDGMENT , SETTLEMENT , AGREEMENT , OR OTHERWISE UNDER T HIS 2
TITLE; 3
(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 4
FUND; 5
(III) INTEREST EARNINGS ; AND 6
(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 7
FOR THE BENEFIT OF T HE FUND. 8
(6) THE FUND MAY BE USED ONLY FOR THE ATTORNEY GENERAL TO 9
INVESTIGATE AND LIT IGATE SUSPECTED VIOL ATIONS OF THIS TITLE . 10
(7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 11
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 12
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 13
CREDITED TO THE FUND. 14
(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 15
ACCORDANCE WITH THE STATE BUDGET . 16
(9) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS 17
NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE 18
APPROPRIATED FOR THE ATTORNEY GENERAL. 19
Article – Health – General 20
2–610. 21
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 22
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under 23
this subtitle in the General Fund of the State. 24
(2) (I) IF A VIOLATION OF THIS SUBTITLE AFFECT S ANY OF THE 25
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 26
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 27
1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE 28
STATE FINANCE AND PROCUREMENT ARTICLE; 29
HOUSE BILL 391 5
2. A SPECIAL FUND REQUIRI NG THE REVERSION OF 1
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE 2
FINANCE AND PROCUREMENT ARTICLE; 3
3. A FUND UNDER THE JURIS DICTION OF THE BOARD OF 4
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 5
4. A FUND UNDER THE JURIS DICTION OF THE STATE 6
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 7
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 8
THIS SUBTITLE , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 9
DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE 10
GENERAL FUND OF THE STATE ON A PRO RATA B ASIS. 11
Article – State Finance and Procurement 12
6–226. 13
(a) (2) (i) Notwithstanding any other provision of law, and unless 14
inconsistent with a federal law, grant agreement, or other federal requirement or with the 15
terms of a gift or settlement agreement, net interest on all State money allocated by the 16
State Treasurer under this section to special funds or accounts, and otherwise entitled to 17
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 18
Fund of the State. 19
(ii) The provisions of subparagraph (i) of this paragraph do not apply 20
to the following funds: 21
144. the Health Equity Resource Community Reserve Fund; 22
[and] 23
145. the Access to Counsel in Evictions Special Fund; AND 24
146. THE FALSE CLAIMS FUND. 25
7–302. 26
Except as otherwise provided by law, at the end of a fiscal year, the unspent balance 27
of each appropriation that was made for that fiscal year to an officer or unit of the State 28
government or to an institution reverts to the General Fund of the State. 29
7–304. 30
6 HOUSE BILL 391
At the end of a fiscal year, the unspent part of an appropriation from a source that 1
State law or an Act of Congress dedicates to a specific purpose does not revert to the General 2
Fund of the State but reverts to the appropriate special fund. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 4
October 1, 2022. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.