Wednesday, February 04, 2009
False Claims Bill is Back
The false claims bill that was defeated on the Senate floor last year is back, and this year it is part of Governor O’Malley’s legislative package (SB 272/HB304).
The legislation would authorize additional penalties for the filing of a false claim for state health benefits and create a new private cause of action for the enforcement of state fraud statutes. It would authorize a person to file suit on behalf of the state for such false claims, and receive up to 30 percent of the proceeds of the suit, plus attorney’s fees and costs
The Maryland Chamber fought to defeat this bill last session. We believe that the state should directly prosecute any person who defrauds the state under a benefit program or contract. However, we believe it is inappropriate for the state to create a new private cause of action for the enforcement of state fraud statutes.
“It is inappropriate for the state to authorize a bounty hunter system for the enforcement of state fraud statutes, Maryland Chamber Vice President of Government Affairs Ron Wineholt said. “A bounty hunter system will lead to needless litigation and harassment of government contractors by overzealous trial lawyers.”
Last session, the bill received a favorable report from the Senate Judicial Proceedings Committee, but failed by three votes on the Senate floor. No hearing date has been set for this year’s legislation. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
