MD
Maryland Senate Bill SB114

Maryland 2022 Regular Session

Maryland Senate Bill SB114 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 609
21
3-– 1 –
4-Chapter 609
5-(Senate Bill 114)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0114*
810
9-False Claims – Civil Penalties or Damages – Exceptions Authorization to
10-Recover and Exceptions to General Fund Deposit by Comptroller
11+SENATE BILL 114
12+D3, P3, B1 (2lr0582)
13+ENROLLED BILL
14+— Budget and Taxation/Appropriations —
15+Introduced by Senator Waldstreicher
1116
12-FOR the purpose of authorizing a governmental entity to recover certain costs and fees of
13-certain actions; requiring that the Comptroller deposit civil penalties or damages
14-collected by the State under the Maryland False Claims Act or under certain
15-provisions of law prohibiting false claims against State health plans and health
16-programs into certain funds or special funds rather than the General Fund of the
17-State under certain circumstances; requiring that funds deposited by the
18-Comptroller under this Act be on a pro rata basis under certain circumstances;
19-establishing the False Claims Fund as a special, nonlapsing fund; requiring interest
20-earnings of the Fund to be credited to the Fund; and generally relating to the
21-Maryland False Claims Act false claims.
17+Read and Examined by Proofreaders:
2218
23-BY repealing and reenacting, with amendments,
24- Article – General Provisions
25-Section 8–103 and 8–109(c)
26- Annotated Code of Maryland
27- (2019 Replacement Volume and 2021 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2823
29-BY adding to
30- Article – General Provisions
31- Section 8–109(d)
32- Annotated Code of Maryland
33- (2019 Replacement Volume and 2021 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3425
35-BY repealing and reenacting, with amendments,
36- Article – Health – General
37-Section 2–610(c)
38- Annotated Code of Maryland
39- (2019 Replacement Volume and 2021 Supplement)
26+_______ day of _______________ at ________________ ________ o’clock, ________M.
4027
41-BY repealing and reenacting, without amendments,
42- Article – State Finance and Procurement
43-Section 7–302 6–226(a)(2)(i), 7–302, and 7–304
44- Annotated Code of Maryland
45- (2021 Replacement Volume)
28+______________________________________________
29+President.
4630
47-BY repealing and reenacting, with amendments,
48- Article – State Finance and Procurement
49- Section 6–226(a)(2)(ii)144. and 145. Ch. 609 2022 LAWS OF MARYLAND
31+CHAPTER ______
5032
51-– 2 –
52- Annotated Code of Maryland
53- (2021 Replacement Volume)
33+AN ACT concerning 1
5434
55-BY adding to
56- Article – State Finance and Procurement
57- Section 6–226(a)(2)(ii)146.
58- Annotated Code of Maryland
59- (2021 Replacement Volume)
35+False Claims – Civil Penalties or Damages – Exceptions Authorization to 2
36+Recover and Exceptions to General Fund Deposit by Comptroller 3
6037
61- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
62-That the Laws of Maryland read as follows:
38+FOR the purpose of authorizing a governmental entity to recover certain costs and fees of 4
39+certain actions; requiring that the Comptroller deposit civil penalties or damages 5
40+collected by the State under the Maryland False Claims Act or under certain 6
41+provisions of law prohibiting false claims against State health plans and health 7
42+programs into certain funds or special funds rather than the General Fund of the 8
43+State under certain circumstances; requiring that funds deposited by the 9
44+Comptroller under this Act be on a pro rata basis under certain circumstances; 10
45+establishing the False Claims Fund as a special, nonlapsing fund; requiring interest 11
46+earnings of the Fund to be credited to the Fund; and generally relating to the 12
47+Maryland False Claims Act false claims. 13
6348
64-Article – General Provisions
49+BY repealing and reenacting, with amendments, 14 2 SENATE BILL 114
6550
66-8–103.
6751
68- (a) If a governmental entity finds that a person has violated or is violating §
69-8–102 of this title, the governmental entity may file a civil action in a court of competent
70-jurisdiction within the State against the person.
52+ Article – General Provisions 1
53+Section 8–103 and 8–109(c) 2
54+ Annotated Code of Maryland 3
55+ (2019 Replacement Volume and 2021 Supplement) 4
7156
72- (b) In filing a civil action under this section, the governmental entity may seek:
57+BY adding to 5
58+ Article – General Provisions 6
59+ Section 8–109(d) 7
60+ Annotated Code of Maryland 8
61+ (2019 Replacement Volume and 2021 Supplement) 9
7362
74- (1) the penalties provided under § 8–102(c) of this title; AND
63+BY repealing and reenacting, with amendments, 10
64+ Article – Health – General 11
65+Section 2–610(c) 12
66+ Annotated Code of Maryland 13
67+ (2019 Replacement Volume and 2021 Supplement) 14
7568
76- (2) SUBJECT TO THE GUIDE LINES UNDER § 8–105(B)(4) OF THIS
77-SUBTITLE, COURT COSTS AND ATTO RNEY’S FEES.
69+BY repealing and reenacting, without amendments, 15
70+ Article – State Finance and Procurement 16
71+Section 7–302 6–226(a)(2)(i), 7–302, and 7–304 17
72+ Annotated Code of Maryland 18
73+ (2021 Replacement Volume) 19
7874
79- (c) A governmental entity may not maintain an action under this section if the
80-governmental entity has filed a civil action based on the same underlying act under §
81-2–603 of the Health – General Article or has sought enforcement by the Attorney General
82-under § 11–205 or § 11–205.1 of the State Finance and Procurement Article.
75+BY repealing and reenacting, with amendments, 20
76+ Article – State Finance and Procurement 21
77+ Section 6–226(a)(2)(ii)144. and 145. 22
78+ Annotated Code of Maryland 23
79+ (2021 Replacement Volume) 24
8380
84-8–109.
81+BY adding to 25
82+ Article – State Finance and Procurement 26
83+ Section 6–226(a)(2)(ii)146. 27
84+ Annotated Code of Maryland 28
85+ (2021 Replacement Volume) 29
8586
86- (c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS
87-SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the
88-State under this title into the General Fund of the State.
87+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 30
88+That the Laws of Maryland read as follows: 31
8989
90- (2) (I) IF A VIOLATION OF THI S TITLE AFFECTS ANY OF THE
91-FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
92-DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND:
90+Article – General Provisions 32
9391
94- 1. A FUND THAT IS NOT S UBJECT TO § 7–302 OF THE
95-STATE FINANCE AND PROCUREMENT ARTICLE;
96- LAWRENCE J. HOGAN, JR., Governor Ch. 609
92+8–103. 33
9793
98-– 3 –
99- 2. A SPECIAL FUND REQUI RING THE REVERSION O F
100-APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE
101-FINANCE AND PROCUREMENT ARTICLE;
94+ (a) If a governmental entity finds that a person has violated or is violating § 34
95+8–102 of this title, the governmental entity may file a civil action in a court of competent 35
96+jurisdiction within the State against the person. 36
10297
103- 3. A FUND UNDER THE JUR ISDICTION OF THE BOARD OF
104-TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR
98+ (b) In filing a civil action under this section, the governmental entity may seek: 37 SENATE BILL 114 3
10599
106- 4. A FUND UNDER THE JUR ISDICTION OF THE STATE
107-EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM.
108100
109- (II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF
110-THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES
111-COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE GENERAL FUND
112-OF THE STATE ON A PRO RATA B ASIS.
113101
114- (D) (1) THERE IS A FALSE CLAIMS FUND.
102+ (1) the penalties provided under § 8–102(c) of this title; AND 1
115103
116- (2) THE PURPOSE OF THE FUND IS TO SUPPORT TH E OPERATIONS OF
117-THE ATTORNEY GENERAL IN CARRYING O UT THIS TITLE.
104+ (2) SUBJECT TO THE GUIDE LINES UNDER § 8–105(B)(4) OF THIS 2
105+SUBTITLE, COURT COSTS AND ATTO RNEY’S FEES. 3
118106
119- (3) THE ATTORNEY GENERAL SHALL ADMINIS TER THE FUND.
107+ (c) A governmental entity may not maintain an action under this section if the 4
108+governmental entity has filed a civil action based on the same underlying act under § 5
109+2–603 of the Health – General Article or has sought enforcement by the Attorney General 6
110+under § 11–205 or § 11–205.1 of the State Finance and Procurement Article. 7
120111
121- (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT
122-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
112+8–109. 8
123113
124- (II) THE STATE TREASURER SHALL HOLD THE FUND
125-SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
114+ (c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 9
115+SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected by the 10
116+State under this title into the General Fund of the State. 11
126117
127- (5) THE FUND CONSISTS OF :
118+ (2) (I) IF A VIOLATION OF THI S TITLE AFFECTS ANY OF THE 12
119+FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 13
120+DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 14
128121
129- (I) ALL ATTORNEY ’S FEES AND COSTS COL LECTED BY THE
130-STATE BY JUDGMENT , SETTLEMENT , AGREEMENT , OR OTHERWISE UNDER T HIS
131-TITLE;
122+ 1. A FUND THAT IS NOT S UBJECT TO § 7–302 OF THE 15
123+STATE FINANCE AND PROCUREMENT ARTICLE; 16
132124
133- (II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE
134-FUND;
125+ 2. A SPECIAL FUND REQUI RING THE REVERSION O F 17
126+APPROPRIATED FUNDS T O THE SPECIAL FUND UNDER § 7–304 OF THE STATE 18
127+FINANCE AND PROCUREMENT ARTICLE; 19
135128
136- (III) INTEREST EARNINGS; AND
129+ 3. A FUND UNDER THE JUR ISDICTION OF THE BOARD OF 20
130+TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 21
137131
138- (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED
139-FOR THE BENEFIT OF T HE FUND.
132+ 4. A FUND UNDER THE JUR ISDICTION OF THE STATE 22
133+EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 23
140134
141- (6) THE FUND MAY BE USED ONLY FOR THE ATTORNEY GENERAL TO
142-INVESTIGATE AND LITI GATE SUSPECTED VIOLA TIONS OF THIS TITLE . Ch. 609 2022 LAWS OF MARYLAND
135+ (II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 24
136+THIS TITLE, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR DAMAGES 25
137+COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE GENERAL FUND 26
138+OF THE STATE ON A PRO RATA B ASIS. 27
143139
144-– 4 –
140+ (D) (1) THERE IS A FALSE CLAIMS FUND. 28
145141
146- (7) (I) THE STATE TREASURER SHA LL INVEST THE MONEY OF THE
147-FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED.
142+ (2) THE PURPOSE OF THE FUND IS TO SUPPORT TH E OPERATIONS OF 29
143+THE ATTORNEY GENERAL IN CARRYING O UT THIS TITLE. 30
148144
149- (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
150-CREDITED TO THE FUND.
145+ (3) THE ATTORNEY GENERAL SHALL ADMINIS TER THE FUND. 31 4 SENATE BILL 114
151146
152- (8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN
153-ACCORDANCE WITH THE STATE BUDGET .
154147
155- (9) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS
156-NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE
157-APPROPRIATED FOR THE ATTORNEY GENERAL.
158148
159-Article – Health – General
149+ (4) (I) THE FUND IS A SPECIAL, NONLAPSING FUND THAT IS NOT 1
150+SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2
160151
161-2–610.
152+ (II) THE STATE TREASURER SHALL HOLD THE FUND 3
153+SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4
162154
163- (c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS
164-SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under
165-this subtitle in the General Fund of the State.
155+ (5) THE FUND CONSISTS OF : 5
166156
167- (2) (I) IF A VIOLATION OF THI S SUBTITLE AFFECTS A NY OF THE
168-FOLLOWING F UNDS, THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
169-DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND:
157+ (I) ALL ATTORNEY ’S FEES AND COS TS COLLECTED BY THE 6
158+STATE BY JUDGMENT , SETTLEMENT , AGREEMENT , OR OTHERWISE UNDER T HIS 7
159+TITLE; 8
170160
171- 1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE
172-STATE FINANCE AND PROCUREMENT ARTICLE;
161+ (II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 9
162+FUND; 10
173163
174- 2. A SPECIAL FUND REQUIRI NG THE REVERSION OF
175-APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE
176-FINANCE AND PROCUREMENT ARTICLE;
164+ (III) INTEREST EARNINGS ; AND 11
177165
178- 3. A FUND UNDER THE JURIS DICTION OF THE BOARD OF
179-TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR
166+ (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 12
167+FOR THE BENEF IT OF THE FUND. 13
180168
181- 4. A FUND UNDER THE JURIS DICTION OF THE STATE
182-EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM.
169+ (6) THE FUND MAY BE USED ONLY FOR THE ATTORNEY GENERAL TO 14
170+INVESTIGATE AND LITI GATE SUSPECTED VIOLA TIONS OF THIS TITLE. 15
183171
184- (II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF
185-THIS SUBTITLE , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR
186-DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE
187-GENERAL FUND OF THE STATE ON A PRO RATA B ASIS.
188- LAWRENCE J. HOGAN, JR., Governor Ch. 609
172+ (7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 16
173+FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE INVESTED. 17
189174
190-– 5 –
191-Article – State Finance and Procurement
175+ (II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 18
176+CREDITED TO THE FUND. 19
192177
193-6–226.
178+ (8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 20
179+ACCORDANCE WITH THE STATE BUDGET . 21
194180
195- (a) (2) (i) Notwithstanding any other provision of law, and unless
196-inconsistent with a federal law, grant agreement, or other federal requirement or with the
197-terms of a gift or settlement agreement, net interest on all State money allocated by the
198-State Treasurer under this section to special funds or accounts, and otherwise entitled to
199-receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
200-Fund of the State.
181+ (9) MONEY EXPENDED FROM T HE FUND IS SUPPLEMENTAL TO AND IS 22
182+NOT INTENDED TO TAKE THE PLACE OF FUNDING THAT OTHERWISE WOULD BE 23
183+APPROPRIATED FOR THE ATTORNEY GENERAL. 24
201184
202- (ii) The provisions of subparagraph (i) of this paragraph do not apply
203-to the following funds:
185+Article – Health – General 25
204186
205- 144. the Health Equity Resource Community Reserve Fund;
206-[and]
187+2–610. 26
207188
208- 145. the Access to Counsel in Evictions Special Fund; AND
189+ (c) (1) [The] EXCEPT AS PROVIDED UN DER PARAGRAPH (2) OF THIS 27
190+SUBSECTION, THE Comptroller shall deposit any civil penalty or damages collected under 28
191+this subtitle in the General Fund of the State. 29
192+ SENATE BILL 114 5
209193
210- 146. THE FALSE CLAIMS FUND.
211194
212-7–302.
195+ (2) (I) IF A VIOLATION OF THI S SUBTITLE AFFECTS A NY OF THE 1
196+FOLLOWING FUNDS , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 2
197+DAMAGES COLLECTED BY THE STATE UNDER THIS TITL E INTO THE AFFECTED FUND: 3
213198
214- Except as otherwise provided by law, at the end of a fiscal year, the unspent balance
215-of each appropriation that was made for that fiscal year to an officer or unit of the State
216-government or to an institution reverts to the General Fund of the State.
199+ 1. A FUND THAT IS NOT SUB JECT TO § 7–302 OF THE 4
200+STATE FINANCE AND PROCUREMENT ARTICLE; 5
217201
218-7–304.
202+ 2. A SPECIAL FUND REQUIRI NG THE REVERSION OF 6
203+APPROPRIATED FUNDS T O THE SPECIAL FUND U NDER § 7–304 OF THE STATE 7
204+FINANCE AND PROCUREMENT ARTICLE; 8
219205
220- At the end of a fiscal year, the unspent part of an appropriation from a source that
221-State law or an Act of Congress dedicates to a specific purpose does not revert to the General
222-Fund of the State but reverts to the appropriate special fund.
206+ 3. A FUND UNDER THE JURIS DICTION OF THE BOARD OF 9
207+TRUSTEES FOR THE STATE RETIREMENT AND PENSION SYSTEM; OR 10
223208
224- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
225-October 1, 2022.
209+ 4. A FUND UNDER THE JURIS DICTION OF THE STATE 11
210+EMPLOYEE AND RETIREE HEALTH AND WELFARE BENEFITS PROGRAM. 12
226211
227-Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022.
212+ (II) IF MORE THAN ONE FUND IS AFFECTED BY A VIO LATION OF 13
213+THIS SUBTITLE , THE COMPTROLLER SHALL DEP OSIT ANY CIVIL PENAL TY OR 14
214+DAMAGES COLLECTED BY THE STATE INTO THE APPROP RIATE FUND OR THE 15
215+GENERAL FUND OF THE STATE ON A PRO RATA B ASIS. 16
216+
217+Article – State Finance and Procurement 17
218+
219+6–226. 18
220+
221+ (a) (2) (i) Notwithstanding any other provision of law, and unless 19
222+inconsistent with a federal law, grant agreement, or other federal requirement or with the 20
223+terms of a gift or settlement agreement, net interest on all State money allocated by the 21
224+State Treasurer under this section to special funds or accounts, and otherwise entitled to 22
225+receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 23
226+Fund of the State. 24
227+
228+ (ii) The provisions of subparagraph (i) of this paragraph do not apply 25
229+to the following funds: 26
230+
231+ 144. the Health Equity Resource Community Reserve Fund; 27
232+[and] 28
233+
234+ 145. the Access to Counsel in Evictions Special Fund; AND 29
235+
236+ 146. THE FALSE CLAIMS FUND. 30
237+
238+7–302. 31
239+ 6 SENATE BILL 114
240+
241+
242+ Except as otherwise provided by law, at the end of a fiscal year, the unspent balance 1
243+of each appropriation that was made for that fiscal year to an officer or unit of the State 2
244+government or to an institution reverts to the General Fund of the State. 3
245+
246+7–304. 4
247+
248+ At the end of a fiscal year, the unspent part of an appropriation from a source that 5
249+State law or an Act of Congress dedicates to a specific purpose does not revert to the General 6
250+Fund of the State but reverts to the appropriate special fund. 7
251+
252+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
253+October 1, 2022. 9
254+
255+
256+
257+
258+Approved:
259+________________________________________________________________________________
260+ Governor.
261+________________________________________________________________________________
262+ President of the Senate.
263+________________________________________________________________________________
264+ Speaker of the House of Delegates.