The Pennsylvania House of Representatives passed House Bill 1697 on Wednesday with a 136-67 vote, advancing legislation that would establish a state-level false claims law aimed at curbing fraud and recovering taxpayer funds.
The bill, introduced on July 2 and modeled after the Federal False Claims Act, enables the state Attorney General to pursue fraud, waste, and abuse within the Human Services code. It also includes protections for whistleblowers and would allow the state to claim a larger share of funds recovered from federal false claims cases.
Supporters of the bill say it would help Pennsylvania recover millions in misused public funds and align the state with 29 others that have similar laws.
“This legislation empowers both the Attorney General and private whistleblowers to expose fraud against the Commonwealth and hold bad actors accountable,” said Rep. Tim Briggs, D-King of Prussia, chair of the Judiciary Committee.
The bill cleared the Judiciary Committee on July 7 on a party-line vote and passed second consideration on July 8. During that session, a motion to postpone by Rep. Charity Grimm-Krupa, R-Smithfield, was defeated, and four Republican-proposed amendments were tabled.
Some Republican members expressed concern about the pace of the bill’s movement through the chamber. “We should allow debate in this House, the people’s house,” said Rep. Joe Hamm, R-Montoursville.
Despite procedural frustrations, several Republicans ultimately supported the measure. Rep. Bryan Cutler, R-Quarryville, cited personal experience with fraud in the healthcare sector, and Rep. Seth Grove, R-York, noted that Pennsylvania has lost out on federal reimbursement due to the lack of a state-level false claims law.
“A national false claims act exists, but because Pennsylvania lacks a state-level version, we miss out on a 10 percent share—that’s millions of dollars over the last decade,” Grove said.
House Minority Leader Jesse Topper, R-Bedford, voted against the bill but indicated he is open to refining the language during the Senate process.
