LAWRENCE J. HOGAN, JR., Governor Ch. 608
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Chapter 608
(House Bill 391)
AN ACT concerning
False Claims – Civil Penalties or Damages – Exceptions Authorization to
Recover and Exceptions to General Fund Deposit by Comptroller
FOR the purpose of authorizing a governmental entity to recover certain costs and fees of
certain actions; requiring that the Comptroller deposit civil penalties or damages
collected by the State under the Maryland False Claims Act or under certain
provisions of law prohibiting false claims against State health plans and health
programs into certain funds or special funds rather than the General Fund of the
State under certain circumstances; requiring that funds deposited by the
Comptroller under this Act be on a pro rata basis under certain circumstances;
establishing the False Claims Fund as a special, nonlapsing fund; requiring interest
earnings of the Fund to be credited to the Fund; and generally relating to the
Maryland False Claims Act false claims.
BY repealing and reenacting, with amendments,
Article – General Provisions
Section 8–103 and 8–109(c)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY adding to
Article – General Provisions
Section 8–109(d)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, with amendments,
Article – Health – General
Section 2–610(c)
Annotated Code of Maryland
(2019 Replacement Volume and 2021 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 7–302 6–226(a)(2)(i), 7–302, and 7–304
Annotated Code of Maryland
(2021 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)144. and 145. Ch. 608 2022 LAWS OF MARYLAND
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Annotated Code of Maryland
(2021 Replacement Volume)
BY adding to
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)146.
Annotated Code of Maryland
(2021 Replacement Volume)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – General Provisions
8–103.
(a) If a governmental entity finds that a person has violated or is violating §
8–102 of this title, the governmental entity may file a civil action in a court of competent
jurisdiction within the State against the person.
(b) In filing a civil action under this section, the governmental entity may seek:
(1) the penalties provided under § 8–102(c) of this title; AND
(2) SUBJECT TO THE GUIDE LINES UNDER § 8–105(B)(4) OF THIS
SUBTITLE, COURT COSTS AND ATTO RNEY’S FEES.
(c) A governmental entity may not maintain an action under this section if the
governmental entity has filed a civil action based on the same underlying act under §
2–603 of the Health – General Article or has sought enforcement by the Attorney General
under § 11–205 or § 11–205.1 of the State Finance and Procurement Article.
8–109.
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the
State under this title into the General Fund of the State.
(2) (I) IF A VIOLATION OF THI S TITLE AFFECTS ANY OF THE
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND:
1. A FUND THAT IS NOT S UBJECT TO § 7–302 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE;
LAWRENCE J. HOGAN, JR., Governor Ch. 608
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2. A SPECIAL FUND REQUI RING THE REVERSION O F
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE;
3. A FUND UNDER THE JUR ISDICTION OF THE BOARD OF
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR
4. A FUND UNDER THE JUR ISDICTION OF THE STATE
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM.
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF
THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES
COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE GENERAL FUND
OF THE STATE ON A PRO RATA B ASIS.
(D) (1) THERE IS A FALSE CLAIMS FUND.
(2) THE PURPOSE OF THE FUND IS TO SUPPORT TH E OPERATIONS OF
THE ATTORNEY GENERAL IN CARRYING O UT THIS TITLE.
(3) THE ATTORNEY GENERAL SHALL ADMINIS TER THE FUND.
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(II) THE STATE TREASURER SHALL HOLD THE FUND
SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(5) THE FUND CONSISTS OF :
(I) ALL ATTORNEY ’S FEES AND COSTS COL LECTED BY THE
STATE BY JUDGMENT , SETTLEMENT , AGREEMENT , OR OTHERWISE UNDER T HIS
TITLE;
(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE
FUND;
(III) INTEREST EARNINGS; AND
(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED
FOR THE BENEFIT OF T HE FUND.
(6) THE FUND MAY BE USED ONLY FOR THE ATTORNEY GENERAL TO
INVESTIGATE AND LITI GATE SUSPECTED VIOLA TIONS OF THIS TITLE . Ch. 608 2022 LAWS OF MARYLAND
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(7) (I) THE STATE TREASURER SHA LL INVEST THE MONEY OF THE
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED.
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
CREDITED TO THE FUND.
(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN
ACCORDANCE WITH THE STATE BUDGET .
(9) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS
NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE
APPROPRIATED FOR THE ATTORNEY GENERAL.
Article – Health – General
2–610.
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under
this subtitle in the General Fund of the State.
(2) (I) IF A VIOLATION OF THI S SUBTITLE AFFECTS A NY OF THE
FOLLOWING F UNDS, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND:
1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE
STATE FINANCE AND PROCUREMENT ARTICLE;
2. A SPECIAL FUND REQUIRI NG THE REVERSION OF
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE
FINANCE AND PROCUREMENT ARTICLE;
3. A FUND UNDER THE JURIS DICTION OF THE BOARD OF
TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR
4. A FUND UNDER THE JURIS DICTION OF THE STATE
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM.
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF
THIS SUBTITLE , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE
GENERAL FUND OF THE STATE ON A PRO RATA B ASIS.
LAWRENCE J. HOGAN, JR., Governor Ch. 608
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Article – State Finance and Procurement
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
144. the Health Equity Resource Community Reserve Fund;
[and]
145. the Access to Counsel in Evictions Special Fund; AND
146. THE FALSE CLAIMS FUND.
7–302.
Except as otherwise provided by law, at the end of a fiscal year, the unspent balance
of each appropriation that was made for that fiscal year to an officer or unit of the State
government or to an institution reverts to the General Fund of the State.
7–304.
At the end of a fiscal year, the unspent part of an appropriation from a source that
State law or an Act of Congress dedicates to a specific purpose does not revert to the General
Fund of the State but reverts to the appropriate special fund.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.