House Judiciary Committee votes to report bill creating Taxpayer Protection Against Fraud Act

The House Judiciary Committee voted to report House Bill 1697, the Taxpayer Protection Against Fraud Act, by a 14-12 margin, sending the measure out of committee for further consideration.

Committee counsel described the legislation as one that “establishes the Taxpayer Protection Against Fraud Act in the human services code,” and said the bill would allow the attorney general to investigate and represent the Commonwealth and permit private qui tam plaintiffs to bring civil actions to combat waste, fraud and abuse.

The bill would allow the Commonwealth to recover treble damages — three times the amount of damages sustained — plus a civil penalty for each violation if a person knowingly commits fraud or submits false claims. The attorney general would receive 20% “off the top” of recoveries in actions the office prevails in to cover costs and enforcement, counsel said. Qui tam plaintiffs must serve a copy of their complaint and supporting evidence on…