An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, providing for liability for false claims, for adoption of congressional intent of the Federal False Claims Act, for damages, costs and civil penalties, for powers of Attorney General, for qui tam actions and for civil investigative demands; and establishing the Fraud Prevention and Recovery Account.

HB 1697 amends Pennsylvania's Human Services Code to create a state-level False Claims Act, directly affecting healthcare providers, contractors, and organizations receiving state funds (like Medicaid or welfare programs). It makes individuals or entities liable for three times the damages plus penalties if they knowingly submit false claims, make false records, or conceal obligations to the state. The bill establishes "qui tam" lawsuits allowing whistleblowers to sue on behalf of the state and creates a Fraud Prevention and Recovery Account to hold recovered funds. These provisions align Pennsylvania's law with the federal False Claims Act to combat fraud in public spending.