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.
Italics indicate opposite chamber/conference committee amendments.
*hb0391*
HOUSE BILL 391
D3, P3, B1 (2lr2342)
ENROLLED BILL
— Appropriations/Budget and Taxation —
Introduced by Delegate Bartlett
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
Speaker.
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 deposited 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 false claims. 13
BY repealing and reenacting, with amendments, 14 2 HOUSE BILL 391
Article – General Provisions 1
Section 8–103 and 8–109(c) 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2021 Supplement) 4
BY adding to 5
Article – General Provisions 6
Section 8–109(d) 7
Annotated Code of Maryland 8
(2019 Replacement Volume and 2021 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Health – General 11
Section 2–610(c) 12
Annotated Code of Maryland 13
(2019 Replacement Volume and 2021 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 7–302 6–226(a)(2)(i), 7–302, and 7–304 17
Annotated Code of Maryland 18
(2021 Replacement Volume) 19
BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 6–226(a)(2)(ii)144. and 145. 22
Annotated Code of Maryland 23
(2021 Replacement Volume) 24
BY adding to 25
Article – State Finance and Procurement 26
Section 6–226(a)(2)(ii)146. 27
Annotated Code of Maryland 28
(2021 Replacement Volume) 29
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
That the Laws of Maryland read as follows: 31
Article – General Provisions 32
8–103. 33
(a) If a governmental entity finds that a person has violated or is violating § 34
8–102 of this title, the governmental entity may file a civil action in a court of competent 35
jurisdiction within the State against the person. 36
(b) In filing a civil action under this section, the governmental entity may seek: 37 HOUSE BILL 391 3
(1) the penalties provided under § 8–102(c) of this title; AND 1
(2) SUBJECT TO THE GUIDE LINES UNDER § 8–105(B)(4) OF THIS 2
SUBTITLE, COURT COSTS AND ATTO RNEY’S FEES. 3
(c) A governmental entity may not maintain an action under this section if the 4
governmental entity has filed a civil action based on the same underlying act under § 5
2–603 of the Health – General Article or has sought enforcement by the Attorney General 6
under § 11–205 or § 11–205.1 of the State Finance and Procurement Article. 7
8–109. 8
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 9
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the 10
State under this title into the General Fund of the State. 11
(2) (I) IF A VIOLATION OF THI S TITLE AFFECTS ANY OF THE 12
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 13
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 14
1. A FUND THAT IS NOT S UBJECT TO § 7–302 OF THE 15
STATE FINANCE AND PROCUREMENT ARTICLE; 16
2. A SPECIAL FUND REQUI RING THE REVERSION O F 17
APPROPRIATED FUNDS T O THE SPECIAL FUND UNDER § 7–304 OF THE STATE 18
FINANCE AND PROCUREMENT ARTICLE; 19
3. A FUND UNDER THE JUR ISDICTION OF THE BOARD OF 20
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 21
4. A FUND UNDER THE JUR ISDICTION OF THE STATE 22
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 23
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 24
THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES 25
COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE GENERAL FUND 26
OF THE STATE ON A PRO RATA B ASIS. 27
(D) (1) THERE IS A FALSE CLAIMS FUND. 28
(2) THE PURPOSE OF THE FUND IS TO SUPPORT TH E OPERATIONS OF 29
THE ATTORNEY GENERAL IN CARRYING O UT THIS TITLE. 30
(3) THE ATTORNEY GENERAL SHALL ADMINIS TER THE FUND. 31 4 HOUSE BILL 391
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 1
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
(II) THE STATE TREASURER SHALL HOLD THE FUND 3
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4
(5) THE FUND CONSISTS OF : 5
(I) ALL ATTORNEY ’S FEES AND COS TS COLLECTED BY THE 6
STATE BY JUDGMENT , SETTLEMENT , AGREEMENT , OR OTHERWISE UNDER T HIS 7
TITLE; 8
(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 9
FUND; 10
(III) INTEREST EARNINGS ; AND 11
(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 12
FOR THE BENEF IT OF THE FUND. 13
(6) THE FUND MAY BE USED ONLY FOR THE ATTORNEY GENERAL TO 14
INVESTIGATE AND LITI GATE SUSPECTED VIOLA TIONS OF THIS TITLE. 15
(7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 16
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 17
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 18
CREDITED TO THE FUND. 19
(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 20
ACCORDANCE WITH THE STATE BUDGET . 21
(9) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS 22
NOT INTENDED TO TAKE THE PLACE OF FUNDING THA T OTHERWISE WOULD BE 23
APPROPRIATED FOR THE ATTORNEY GENERAL. 24
Article – Health – General 25
2–610. 26
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 27
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under 28
this subtitle in the General Fund of the State. 29
HOUSE BILL 391 5
(2) (I) IF A VIOLATION OF THI S SUBTITLE AFFECTS A NY OF THE 1
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 2
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 3
1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE 4
STATE FINANCE AND PROCUREMENT ARTICLE; 5
2. A SPECIAL FUND REQUIRI NG THE REVERSION OF 6
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE 7
FINANCE AND PROCUREMENT ARTICLE; 8
3. A FUND UNDER THE JURIS DICTION OF THE BOARD OF 9
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 10
4. A FUND UNDER THE JURIS DICTION OF THE STATE 11
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 12
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 13
THIS SUBTITLE , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 14
DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE 15
GENERAL FUND OF THE STATE ON A PRO RATA B ASIS. 16
Article – State Finance and Procurement 17
6–226. 18
(a) (2) (i) Notwithstanding any other provision of law, and unless 19
inconsistent with a federal law, grant agreement, or other federal requirement or with the 20
terms of a gift or settlement agreement, net interest on all State money allocated by the 21
State Treasurer under this section to special funds or accounts, and otherwise entitled to 22
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 23
Fund of the State. 24
(ii) The provisions of subparagraph (i) of this paragraph do not apply 25
to the following funds: 26
144. the Health Equity Resource Community Reserve Fund; 27
[and] 28
145. the Access to Counsel in Evictions Special Fund; AND 29
146. THE FALSE CLAIMS FUND. 30
7–302. 31
6 HOUSE BILL 391
Except as otherwise provided by law, at the end of a fiscal year, the unspent balance 1
of each appropriation that was made for that fiscal year to an officer or unit of the State 2
government or to an institution reverts to the General Fund of the State. 3
7–304. 4
At the end of a fiscal year, the unspent part of an appropriation from a source that 5
State law or an Act of Congress dedicates to a specific purpose does not revert to the General 6
Fund of the State but reverts to the appropriate special fund. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2022. 9
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.