EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0114*
SENATE BILL 114
D3, P3, B1 2lr0582
(PRE–FILED)
By: Senator Waldstreicher
Requested: September 27, 2021
Introduced and read first time: January 12, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
False Claims – Civil Penalties or Damages – Exceptions to General Fund Deposit 2
by Comptroller 3
FOR the purpose of requiring that the Comptroller deposit civil penalties or damages 4
collected by the State under the Maryland False Claims Act or under certain 5
provisions of law prohibiting false claims against State health plans and health 6
programs into certain funds or special funds rather than the General Fund of the 7
State under certain circumstances; requiring that funds deposited by the 8
Comptroller under this Act be on a pro rata basis under certain circumstances; and 9
generally relating to the Maryland False Claims Act. 10
BY repealing and reenacting, with amendments, 11
Article – General Provisions 12
Section 8–109(c) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2021 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Health – General 17
Section 2–610(c) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2021 Supplement) 20
BY repealing and reenacting, without amendments, 21
Article – State Finance and Procurement 22
Section 7–302 and 7–304 23
Annotated Code of Maryland 24
(2021 Replacement Volume) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 2 SENATE BILL 114
That the Laws of Maryland read as follows: 1
Article – General Provisions 2
8–109. 3
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 4
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the 5
State under this title into the General Fund of the State. 6
(2) (I) IF A VIOLATION OF THIS TITLE AFFECTS ANY OF THE 7
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 8
DAMAGES COLLECTED BY THE STATE UNDER THIS TITLE INTO THE AFFECTED FUND: 9
1. A FUND THAT IS NOT SUBJECT TO § 7–302 OF THE 10
STATE FINANCE AND PROCUREMENT ARTICLE; 11
2. A SPECIAL FUND REQUIRI NG THE REVERSION OF 12
APPROPRIA TED FUNDS TO THE SPECIAL FUND UNDER § 7–304 OF THE STATE 13
FINANCE AND PROCUREMENT ARTICLE; 14
3. A FUND UNDER THE JURIS DICTION OF THE STATE 15
RETIREMENT AND PENSION SYSTEM; OR 16
4. A FUND UNDER THE JURISDICTION OF THE STATE 17
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 18
(II) IF MORE THAN ONE FUND I S AFFECTED BY A VIOLATION OF 19
THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES 20
COLLECTED BY THE STATE INTO THE APPROPRIATE FUND OR THE GENERAL FUND 21
OF THE STATE ON A PRO RATA BASIS . 22
Article – Health – General 23
2–610. 24
(c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 25
SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under 26
this subtitle in the General Fund of the State. 27
(2) (I) IF A VIOLATION OF THI S SUBTITLE AFFECTS A NY OF THE 28
FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 29
DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 30
SENATE BILL 114 3
1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE 1
STATE FINANCE AND PROCUREMENT ARTICLE; 2
2. A SPECIAL FUND REQUIRI NG THE REVERSION OF 3
APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE 4
FINANCE AND PROCUREMENT ARTICLE; 5
3. A FUND UNDER THE JURIS DICTION OF THE STATE 6
RETIREMENT AND PENSION SYSTEM; OR 7
4. A FUND UNDER THE JURIS DICTION OF THE STATE 8
EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 9
(II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 10
THIS SUBTITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 11
DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE 12
GENERAL FUND OF THE STATE ON A PRO RATA B ASIS. 13
Article – State Finance and Procurement 14
7–302. 15
Except as otherwise provided by law, at the end of a fiscal year, the unspent balance 16
of each appropriation that was made for that fiscal year to an officer or unit of the State 17
government or to an institution reverts to the General Fund of the State. 18
7–304. 19
At the end of a fiscal year, the unspent part of an appropriation from a source that 20
State law or an Act of Congress dedicates to a specific purpose does not revert to the General 21
Fund of the State but reverts to the appropriate special fund. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October 1, 2022. 24