House Judiciary Committee approves taxpayer protection against fraud act by Chairman Burns

In a pivotal meeting on July 7, 2025, the Pennsylvania House Judiciary Committee convened to discuss House Bill 1697, aimed at enhancing the Commonwealth's ability to combat fraud within the human services sector. The bill, introduced by Chairman Burns, establishes the Taxpayer Protection Against Fraud Act, which allows for significant penalties against individuals who knowingly commit fraud or submit false claims against the state.

The proposed legislation outlines that offenders could be liable for three times the damages incurred by the Commonwealth, in addition to civil penalties for each violation. The Attorney General is designated as the primary investigator and representative for the Commonwealth in these matters, receiving 20% of any recovered amounts to cover enforcement costs. The bill also introduces provisions for qui tam (QTAM) plaintiffs, enabling private citizens to file civil actions against fraud, with specific protections and incentives for whistleblowers.

During the meeting, some committee members expressed concerns regarding the complexity and timing of the bill's introduction. Minority Chair Kaufman voiced his apprehension, stating he felt unprepared to support the legislation due to its intricate nature. However, other members highlighted the bill's long history, noting bipartisan efforts over the past two decades to establish a false claims court in Pennsylvania.

Ultimately, the committee voted on the bill, which passed narrowly with a 14 to 12 vote. This outcome reflects a significant step towards strengthening the Commonwealth's legal framework against fraud, while also raising questions about the balance between rigorous enforcement and the protection of individuals' rights in the process.

The committee plans to reconvene for further discussions and voting on additional matters, indicating ongoing legislative activity in this critical area of public policy. The passage of House Bill 1697 marks a notable development in Pennsylvania's efforts to safeguard taxpayer interests and enhance accountability within government-funded programs.