Maryland whistleblower law

What are the Maryland Whistleblower Laws (the Maryland False Claims Acts and Maryland Whistleblower Reward Program)?

Maryland has three whistleblower laws: the Maryland False Health Claims Act, the Maryland False Claims Act, and the Maryland Whistleblower Reward Program.

The Maryland False Claims Act and the Maryland False Health Claims Act allow whistleblowers to file “qui tam” lawsuits against those who engage in prohibited conduct under the Acts.

The Maryland False Claims Act imposes liability on persons who knowingly present false or fraudulent claims for payment to the state, misappropriate state property, or deceptively conceal or avoid payment obligations to the state, among other violations.

The Maryland False Health Claims Act imposes liability on persons who knowingly present false or fraudulent claims or deceptively conceal or avoid payments relating to Maryland’s state health plans or programs, including Medicaid.

The Maryland Whistleblower Reward Program, modeled after a similar IRS program, allows whistleblowers to report the underpayment of taxes by individuals and companies to the Comptroller of Maryland. If the whistleblower’s information results in an enforcement action by the Comptroller, the whistleblower may receive an award of up to 30% of the taxes, penalties, and interest collected through the enforcement action. The enforcement action must involve over $250,000 in disputed taxes and concern an individual with annual taxable income of at least $250,000 or a business with annual taxable income of at least $2 million. The Maryland Whistleblower Reward Program also protects whistleblowers from retaliation.

Penalties under the Maryland False Claims Acts

Under both the Maryland False Claims Act and the False Health Claims Act a defendant may be ordered to pay damages equal to up to three times the actual harm to the state, plus a fine not to exceed $10,000 for each violation. Maryland law also requires that the state government intervene in an action before it goes forward. Whistleblowers thus cannot prosecute allegations under Maryland law without the state’s participation.

Rewards under the Maryland Whistleblower Laws

The whistleblower in a Maryland False Claims Act or False Health Claims Act case may be awarded between 15 and 25 percent of amounts recovered. The court may reduce the amount of the award if the whistleblower planned and initiated the fraud or if the action is based on information disclosed in the media or public hearings.

A whistleblower who provides information that results in an enforcement action under the Maryland Whistleblower Reward Program may receive an award of up to 30% of the taxes, penalties, and interest collected through the action.

Protection from Retaliation under the Maryland Whistleblower Laws

The Maryland False Claims Act and the False Health Claims Act protect whistleblowers who suffer employment retaliation because of their whistleblowing. Protection under the Maryland False Claims Acts includes:

Reinstatement with the same seniority status that the whistleblower had before the retaliation
Reinstatement of fringe benefits and seniority rights
Two times the amount of lost wages, benefits, and other remuneration, plus interest
Punitive damages
Civil penalties

In successful whistleblower retaliation cases, the defendant is also required to pay litigation costs and reasonable attorneys’ fees.

The Maryland Whistleblower Reward Program also protects whistleblowers who suffer employment retaliation because of their whistleblowing including reinstatement, compensation for lost wages or benefits plus interest, removal of adverse personnel record entries, and compensation for any special damages sustained as a result of the discrimination, including litigation costs and reasonable attorneys’ fees.

Time Limits (Statute of Limitations) under the Maryland False Claims Acts

Both the Maryland False Claims Acts require that an action be brought within six years of the violations they are reporting, but the time for filing may be extended in certain cases to up to ten years.

[Updated October 2023]

MARYLAND WHISTLEBLOWER LAW: FALSE HEALTH CLAIMS ACT

Md. Code Health-General § 2-601. Definitions

In general

(a) In this subtitle the following
words have the meanings indicated.

Claim

(b)

(1) “Claim” means a request or demand, under a
contract or otherwise, for money or other property, whether or not the State
has title to the money or property, that is:

(i) Presented through a State health plan or a State
health program to an officer, employee, or agent of the State; or

(ii) Made to a contractor, grantee, or other
recipient, if the money or other property is to be spent or used on the State’s
behalf or to advance a State interest through a State health plan or State
health program, and the State:

1. Provides or has provided any portion of the money
or other property requested or demanded; or

2. Will reimburse the contractor, grantee, or other
recipient for any portion of the money or other property that is requested or
demanded.

(2) “Claim” does not include requests or demands for
money or other property that the State through a State health plan or State
health program has paid to an individual as compensation for State employment
or as an income subsidy with no restrictions on that individual’s use of the
money or other property.

Documentary material

(1) The original or a copy of:

(i) A book;

(ii) A record;

(iii) A report;

(iv) A memorandum;

(v) A paper;

(vi) A communication;

(vii) A tabulation;

(viii) A chart;

(ix) A document; or

(x) Data compilation stored in or accessible through
a computer or other information retrieval system, including instructions and
all other materials necessary to use or interpret the data compilation; and

(2) Any product of discovery, including:

(i) The original or duplicate of any deposition,
interrogatory, document, thing, result of an inspection of land or other
property, examination, or admission that is obtained by any method of discovery
in any judicial or administrative proceeding of an adversarial nature;

(ii) Any digest, analysis, selection, compilation,
or derivation of any item listed in item (i) of this item; and

(iii) Any index or other manner of access to any
item listed in item (i) of this item.

Employee

(d) “Employee” means an individual
who performs services:

(1) For and under the control and direction of an
employer; and

(2) Under an employer’s promise or implied promise
of payment of wages or other remuneration.

Employer

(e) “Employer” means a person or
group of persons who, acting directly or indirectly on behalf of another person
or group of persons:

(1) Allows an employee to perform services under the
employer’s control and direction; and

(2) Promises or implies that the employee will
receive wages or other remuneration in payment for the performance of those
services.

Knowing or knowingly

(f)

(1) “Knowing” or “knowingly” means, with respect to
information and without requiring proof of specific intent to defraud, that a
person:

(i) Has actual knowledge of the information;

(ii) Acts in deliberate ignorance of the truth or
falsity of the information; or

(iii) Acts in reckless disregard of the truth or
falsity of the information.

(2) “Knowing” or “knowingly” does not mean, with
respect to information, that a person acts in a manner that constitutes mistake
or negligence.

Material

(g) “Material” means having a natural
tendency to influence or be capable of influencing the payment or receipt of
money or other property.

Obligation

(h) “Obligation” means an established
duty, whether or not fixed, arising from:

(1) An express or implied:

(i) Contractual relationship;

(ii) Grantor-grantee relationship; or

(iii) Licensor-licensee relationship;

(2) A fee-based or similar relationship;

(3) Statute or regulation; or

(4) The retention of an overpayment.

Provider

(i) “Provider” has the meaning stated
in § 2-501 of this title.

Public body

(j) “Public body” means:

(1) The General Assembly or any other elected body;

(2) A member or an employee of the General Assembly
or other elected body;

(3) A State court;

(4) A member or an employee of a State court;

(5) A State or local regulatory, administrative, or
public agency or authority;

(6) An instrumentality of a State or local
regulatory, administrative, or public agency or authority;

(7) A State or local law enforcement agency,
prosecutorial office, or police or peace officer;

(8) A State or local department of an executive
branch of government; or

(9) A division, board, bureau, office, committee, or
commission of any of the public bodies listed in this subsection.

Retaliatory action

(k) “Retaliatory action” means:

(1) Discharging, suspending, demoting, threatening,
harassing, or discriminating against an employee, contractor, or agent; or

(2) Any other adverse action taken against an
employee, contractor, or agent relating to the conditions of employment,
contract, or agency.

State health plan

(l)

(1) “State health plan” means:

(i) The State Medical Assistance Plan established in
accordance with the federal Social Security Act of 1939, as amended;

(ii) A medical assistance plan established by the
State; or

(iii) A private health insurance carrier, health
maintenance organization, managed care organization as defined in § 15-101 of
this article, health care cooperative or alliance, or another person that
provides or contracts to provide health care services that are wholly or
partially reimbursed by, or are a required benefit of, a health plan
established in accordance with the federal Social Security Act of 1939, as
amended, or by the State.

(2) “State health plan” includes a person who
provides or contracts or subcontracts to provide health care services for an
entity described in paragraph (1) of this subsection.

State health program

(m) “State health program” means the
Medical Assistance Program, the Cigarette Restitution Fund Program, the
Developmental Disabilities Administration, the Behavioral Health
Administration, the Prevention and Health Promotion Administration, or any
other unit of the Department that pays a provider for a service rendered or
claimed to have been rendered to a recipient.

Supervisor

(n) “Supervisor” means an individual
within an employer’s organization who has the authority to:

(1) Direct and control the work performance of an
employee; or

(2) Take corrective action regarding the violation
of a law or regulation that is the subject of a complaint or charge under this
subtitle.

Md. Code Health-General § 2-602. False or fraudulent claims prohibited

Actions subject to discipline

(a) A person may not:

(1) Knowingly present or cause to be presented a
false or fraudulent claim for payment or approval;

(2) Knowingly make, use, or cause to be made or used
a false record or statement material to a false or fraudulent claim;

(3) Conspire to commit a violation under this
subtitle;

(4) Have possession, custody, or control of money or
other property used by or on behalf of the State under a State health plan or a
State health program and knowingly deliver or cause to be delivered to the
State less than all of that money or other property;

(5)

(i) Be authorized to make or deliver a receipt or
other document certifying receipt of money or other property used or to be used
by the State under a State health plan or a State health program; and

(ii) Intending to defraud the State or the
Department, make or deliver a receipt or document knowing that the information
contained in the receipt or document is not true;

(6) Knowingly buy or receive as a pledge of an
obligation or debt publicly owned property from an officer, employee, or agent
of a State health plan or a State health program who lawfully may not sell or
pledge the property;

(7) Knowingly make, use, or cause to be made or
used, a false record or statement material to an obligation to pay or transmit
money or other property to the State;

(8) Knowingly conceal, or knowingly and improperly
avoid or decrease, an obligation to pay or transmit money or other property to
the State; or

(9) Knowingly make any other false or fraudulent
claim against a State health plan or a State health program.

Fines and penalties

(b)

(1) A person who is found to have violated
subsection (a) of this section is liable to the State for:

(i) A civil penalty of not more than $10,000 for
each violation of subsection (a) of this section; and

(ii) An additional amount of not more than three times
the amount of damages that the State sustains as a result of the acts of that
person in violation of subsection (a) of this section.

(2) The total amount owed by a person under
paragraph (1) of this subsection may not be less than the amount of the actual
damages the State health plan or State health program incurs as a result of the
person’s violation of subsection (a) of this section.

Factors in determining amount of fines or damages

(c)

(1) In determining the appropriate amount of fines
and damages under subsection (b) of this section, the court shall consider:

(i) The number, nature, and severity of the
violations of this subtitle for which the person has been found liable;

(ii) The number, nature, and severity of any
previous violations of this subtitle;

(iii) The degree of loss suffered by the State
health plan or State health program;

(iv) The person’s history of billing compliance;

(v) Whether the person has a compliance program in
place;

(vi) The extent to which the person has taken steps
to address and correct the violation since the person became aware of the
violation;

(vii) The extent to which the violation caused harm
or detriment to patients or consumers of the State health plan or State health
program;

(viii) Any funds previously returned to the State
health plan or State health program in compliance with federal requirements
regarding overpayments, to the extent the funds represented losses to the State
health plan or State health program caused by the violation;

(ix) Whether the person self-reported the violation,
the timeliness of the self-reporting, the extent to which the person otherwise
cooperated in the investigation of the violation, and the extent to which the
person had prior knowledge of an investigation or other action relating to the
violation; and

(x) Any other factor as justice requires.

(2) In weighing the factors set forth in paragraph
(1) of this subsection, the court shall, where appropriate, give special
consideration to:

(i) The extent to which the person’s size, operations,
or financial condition may have affected each of the factors set forth in
paragraph (1) of this subsection; and

(ii) The extent to which the person’s size,
operations, or financial condition may affect the person’s ability to provide
care and continue operations after payment of damages and fines.

Construction with criminal, civil, or administrative penalties

(d) The penalties provided in
subsection (b) of this section are in addition to any criminal, civil, or
administrative penalties provided under any other State or federal statute or
regulation.

Md. Code Health-General § 2-603. Civil actions filed by State

In general

(a) If the State finds that a person
has violated or is violating § 2-602(a) of this subtitle, the State may file a
civil action in a court of competent jurisdiction within the State against the
person.

Penalties, court costs, and attorney’s fees

(b) In filing a civil action under
this section, the State may seek:

(1) The penalties provided under § 2-602(b) of this
subtitle; and

(2) Subject to the guidelines set forth in §
2-605(a)(4) of this subtitle, court costs and attorney’s fees.

Md. Code Health-General § 2-604. Civil actions filed by persons

Actions brought on behalf of person and State

(a)

(1)

(i) A person may file a civil action on behalf of
the person and the State in a court of competent jurisdiction within the State
against a person who has acted or is acting in violation of § 2-602(a) of this
subtitle.

(ii) A civil action filed under subparagraph (i) of
this paragraph shall be brought in the name of the State.

(2) A person filing an action under this section may
seek:

(i) The penalties provided under § 2-602(b) of this
subtitle; and

(ii) Subject to the guidelines set forth in §
2-605(a)(4) of this subtitle, court costs and attorney’s fees.

(3)

(i) The person shall serve on the State a copy of
the complaint and a written disclosure of substantially all material evidence
and information that the person possesses, in accordance with the provisions of
Title 2 of the Maryland Rules for serving process on the State.

(ii)

1. The complaint shall be filed in camera and shall
remain under seal for at least 60 days.

2. The complaint may not be served on the defendant
until the complaint is unsealed and the court orders the complaint served.

3. Within 60 days after the State receives the
complaint and the material evidence and information, the State may elect to
intervene and proceed with the action.

(4)

(i) For good cause shown, the State may move the
court for extensions of the time during which the complaint remains under seal
under paragraph (3)(ii)1 of this subsection.

(ii) Any motions made under subparagraph (i) of this
paragraph may be supported by affidavits or other submissions in camera.

(5)

(i) The defendant may not be required to answer a
complaint filed under this section until after the complaint is:

1. Unsealed and ordered by the court to be served;
and

2. Served on the defendant in accordance with Title
2 of the Maryland Rules.

(ii) When answering a complaint filed under this
section, a defendant shall follow the time frames and other provisions for
filing answers to a complaint as required under Title 2, Chapter 300 of the
Maryland Rules.

(iii) During the period in which the complaint is
under seal, if the State’s investigation reveals that the act, transaction, or
occurrence that gave rise to the alleged violation of this subtitle is
reasonably likely to be continuing, the State shall notify the defendant as
soon as practicable without jeopardizing the course and conduct of the State’s
or the federal government’s investigation of the violation, compromising the
development of evidence, or violating any State or federal law.

(6) Before the later of the expiration of the 60-day
period during which the complaint remains under seal under paragraph (3)(ii)1
of this subsection or any extension of the 60-day period obtained under
paragraph (4) of this subsection, the State shall:

(i) Intervene and proceed with the action in a court
of competent jurisdiction within the State; or

(ii) Notify the court that it will not intervene and
proceed with the action.

(7) If the State does not elect to intervene and
proceed with the action under paragraph (6) of this subsection, before
unsealing the complaint, the court shall dismiss the action.

(8) If a person initiates an action under this
section, no person other than the State may intervene in the action or initiate
a related action based on the facts underlying the pending action.

Intervention by State

(b)

(1) If the State intervenes and proceeds with the
action under subsection (a)(6)(i) of this section:

(i) The State shall have the primary responsibility
for proceeding with the action and may not be bound by any act of the person
who initiated the action; and

(ii) Subject to paragraphs (3) through (6) of this
subsection, the person who initiated the action may continue as a party to the
action.

(2)

(i) During an investigation by the State conducted
either independently or in conjunction with a civil action filed under this
subtitle, the Attorney General shall have the same rights of discovery as a
civil litigant in the circuit court under Title 2, Chapter 400 of the Maryland
Rules.

(ii) A person from whom the Attorney General seeks
discovery shall be considered a party under Title 2, Chapter 400 of the
Maryland Rules.

(3)

(i) Notwithstanding the objections of the person
initiating the action, the State may elect at any point to withdraw its
intervention as a party to the action.

(ii) If the State elects to withdraw as a party to
the action:

1. The State shall notify the court and the party
initiating the action; and

2. The court shall dismiss the action.

(4) Notwithstanding the objections of the person
initiating the action, if the court determines after a hearing that a proposed
settlement is fair, adequate, and reasonable under the circumstances, the State
may settle a civil action filed under this section.

(5) On motion of the State or the defendant or on
the court’s own motion, the court may impose limitations on the participation
of the person initiating an action under this section if:

(i) The State shows that the person’s unrestricted
participation in the action would:

1. Interfere with or unduly delay the State in its
pursuit of the civil action; or

2. Be repetitious, irrelevant, or harassing to the
defendant; or

(ii) The defendant shows that unrestricted
participation by the person initiating the action would harass the defendant or
cause the defendant undue burden or unnecessary expense.

(6) Limitations imposed by the court under paragraph
(5) of this subsection may include:

(i) A limitation on the number of witnesses the
person may call to testify;

(ii) A limitation on the length of the testimony of
witnesses called by the person;

(iii) A limitation on the person’s cross-examination
of witnesses; or

(iv) A limitation on the participation of the person
in the litigation.

Alternative remedies pursued by State

(c)

(1) Instead of proceeding with a civil action filed
under this subtitle, the State may pursue any alternative remedy available to
the State, including any appropriate administrative proceeding to determine a
civil money penalty.

(2) If the State seeks an alternative remedy in
another proceeding after intervening in a civil action filed under this
section, the person initiating the action shall have the same rights in the
alternative proceeding as the person would have had if the civil action had
continued under this section.

(3)

(i) A finding of fact or conclusion of law made in
any alternative proceeding that has become final shall be conclusive on all
parties to an action filed under this subtitle.

(ii) For purposes of subparagraph (i) of this
paragraph, a finding or conclusion is final if:

1. It has been finally determined on appeal to the
appropriate court of the State;

2. All time for filing the appeal with respect to
the finding or conclusion has expired; or

3. The finding or conclusion is not subject to
judicial review.

Stay of discovery due to interference with State actions

(d)

(1) On a showing in camera by the State that certain
actions of discovery by the person initiating the action would interfere with
the State’ s investigation or prosecution of a criminal or civil matter arising
out of the same facts, the court may stay the discovery for a period of not
more than 60 days.

(2) The court may extend the 60-day period on a
further showing in camera that:

(i) The State has pursued the criminal or civil
investigation or proceeding with reasonable diligence; and

(ii) Any proposed discovery in the civil action will
interfere with the ongoing criminal or civil investigation or proceeding.

Md. Code Health-General § 2-605. State intervention of proceedings

Awards to persons initiating the action

(a)

(1) If the State intervenes and proceeds with an
action filed under § 2-604 of this subtitle and the State prevails, the court
shall award the person initiating the action an amount that is:

(i) Not less than 15% and not more than 25% of the
proceeds of the action or settlement of the claim; and

(ii) Proportional to the amount of time and effort
that the person substantially contributed to the final resolution of the civil
action.

(2)

(i) If the court finds that the action is based
primarily on disclosures of specific information relating to allegations or
transactions in a criminal, civil, or administrative hearing, in a legislative
or administrative report, hearing, audit, or investigation, or from the news
media, the court may make an award to the person initiating the action that:

1. The court considers appropriate, taking into
account the significance of the information and the role of the person
initiating the action in advancing the case to litigation; and

2. Does not exceed 10% of the proceeds of the
action.

(ii) The information described in subparagraph (i)
of this paragraph does not include information disclosed and provided by the
person initiating the action.

(3) Any payment to a person under paragraph (1) or
(2) of this subsection shall be made from the proceeds of the action.

(4)

(i) In addition to the amount provided under
paragraphs (1) and (2) of this subsection, a court may award the person
initiating the action:

1. An amount for reasonable expenses that the court
finds to have been necessarily incurred; and

2. Reasonable attorney’s fees and costs.

(ii) In determining the amount of any award under
subparagraph (i) of this paragraph, the court shall consider the amount of any
penalties and damages recovered in the action and any other factor as justice
may require.

(iii) Any expenses, fees, and costs awarded under
this paragraph shall be awarded against the defendant.

Reduction in persons’ share of proceeds

(b)

(1) If a court finds that the action is initiated by
a person who planned and initiated or otherwise deliberately participated in
the violation on which the action was based, the court may, to the extent it
considers appropriate, reduce the share of the proceeds of the action that the
person otherwise would have received under this section.

(2) In reducing the share of the proceeds of the
person initiating the action under this subsection, the court shall consider:

(i) The role of the person in advancing the case to
litigation; and

(ii) Any relevant circumstances relating to the
underlying violation.

(3)

(i) If the person initiating a civil action under §
2-604 of this subtitle is convicted of criminal conduct arising from the person’s
participation in the violation on which the action was based prior to a final
determination of the action, the person:

1. Shall be dismissed from the action; and

2. May not receive any share of the proceeds of the
action.

(ii) The dismissal of the person initiating the
action in accordance with this paragraph does not prejudice the right of the
State to continue the action.

(4) If the person initiating a civil action under §
2-604 of this subtitle is convicted of criminal conduct arising from the person’s
participation in the violation on which the action was based after the proceeds
from the action are awarded to that person, the court shall order the person to
repay the proceeds previously awarded.

Attorney’s fees and expenses

(c) A court may award reasonable
attorney’s fees and expenses to a defendant and against the person initiating
the action if:

(1) The defendant prevails in the action; and

(2) The court finds that the claim of the person
initiating the action was brought primarily for purposes of harassment or
otherwise brought in bad faith.

Md. Code Health-General § 2-606. Civil actions by or against government employees

In general

(a) No court in this State shall have
jurisdiction over an action filed under § 2-604 of this subtitle against any
member of the Legislative Branch or the Judiciary of the State, any member of
the Governor’s Executive Council, the Attorney General, the Comptroller, or the
State Treasurer if the action is based on evidence or information known to the
State when the action was filed.

Actions based on reports or investigations by public employees or officials

(b) A civil action may not be brought
under this subtitle by a person who is or was a public employee or public
official if the allegations of the action are based substantially on:

(1) Allegations of wrongdoing or misconduct that the
person had a duty or obligation to report or investigate within the scope of
the person’s public employment or office; or

(2) Information or records to which the person had
access as a result of the person’s public employment or office.

Civil suits or administrative proceedings in which State a party

(c) A person may not bring an action
under § 2-604 of this subtitle that is based on allegations or transactions
that are the subject of a civil suit or an administrative civil money penalty
proceeding in which the State is already a party.

Actions based on public disclosure of allegations or transactions

(d)

(1) Except as provided in paragraphs (2) and (3) of
this subsection, no court in this State shall have jurisdiction over an action
filed under § 2-604 of this subtitle that is based on the public disclosure of
allegations or transactions:

(i) In a criminal, civil, or an administrative
hearing;

(ii) In a legislative or an administrative report, a
hearing, an audit, or an investigation; or

(iii) From the news media.

(2) Paragraph (1) of this subsection does not apply
if the action is initiated by a person who:

(i) Has direct and independent knowledge of the
information on which the allegations are based; and

(ii) Has voluntarily provided the information to the
State before filing an action under § 2-604 of this subtitle that is based on
the information.

(3) The State, through the Attorney General, may
file a civil action under § 2-603 of this subtitle based on the public
disclosure described in paragraph (1) of this subsection.

State not liable for expenses

(e) The State is not liable for
expenses that a person incurs in bringing an action under § 2-604 of this
subtitle.

Restrictions

(f) A person who is or was employed
by the State, a local government, or any other political subdivision of the
State as an auditor, investigator, attorney, financial officer, or contracting
officer may not bring an action under § 2-604 of this subtitle that is based on
allegations or transactions that the person discovered or learned of while
acting in the person’s capacity as an auditor, investigator, attorney,
financial officer, or contracting officer for the State, local government, or
other political subdivision of the State.

Md. Code Health-General § 2-607. Retaliatory actions against employees,
contractors, or grantees prohibited

Actions protected by section

(a) A person may not take a
retaliatory action against an employee, contractor, or grantee because the
employee, contractor, or grantee:

(1) Acts lawfully in furtherance of an action filed
under this subtitle, including an investigation for, initiation of, testimony
for, or assistance in an action filed or to be filed under this subtitle;

(2) Discloses or threatens to disclose to a
supervisor or to a public body an activity, policy, or practice of the person
that the employee, contractor, or grantee reasonably believes is in violation
of § 2-602(a) of this subtitle or a regulation adopted under this subtitle;

(3) Provides information to, or
testifies before, a public body conducting an investigation, hearing, or
inquiry into a violation of § 2-602(a) of this subtitle or a regulation adopted
under this subtitle that is allegedly or actually committed by the person; or

(4) Objects to or refuses to
participate in any activity, policy, or practice that the employee, contractor,
or grantee reasonably believes is in violation of § 2-602(a) of this subtitle
or a regulation adopted under this subtitle.

Remedies available

(b)

(1) An employee, contractor, or grantee may file a
civil action against a person other than a supervisor in State government, an
appointing authority in State government, or the head of a principal unit in
State government if the person takes a retaliatory action against the employee,
contractor, or grantee in violation of subsection (a) of this section.

(2) The employee, contractor, or grantee may seek in
the civil action:

(i) An injunction to restrain a continuing violation
of subsection (a) of this section;

(ii) Reinstatement to the same seniority status held
before the retaliatory action;

(iii) Reinstatement of full fringe benefits and
seniority rights;

(iv) Two times the amount of lost wages, benefits,
and other remuneration, including any interest accumulated;

(v) Payment by the person of reasonable costs and
attorney’s fees;

(vi) Punitive damages;

(vii) An assessment of a civil penalty:

1. Not exceeding $1,000 for the first violation; and

2. Not exceeding $5,000 for each subsequent
violation; and

(viii) Any other relief necessary to make the
employee, contractor, or grantee whole.

(3) The remedies provided under this section do not
diminish or affect the rights, privileges, or remedies available to the
employee, contractor, or grantee under:

(i) Any other federal or State statute or
regulation; or

(ii) Any collective bargaining agreement or employee
contract.

Application of section

(c) This section does not apply to an
employee as defined in § 1-501 of the Health Occupations Article or a State
employee.

Article governing civil action or
complaint

(d)

(1) An employee as defined in § 1-501 of the Health
Occupations Article who is subject to retaliatory action in violation of
subsection (a) of this section may file a civil action under Title 1, Subtitle
5 of the Health Occupations Article.

(2) A State employee who is subject to retaliatory
action in violation of subsection (a) of this section may file a complaint under
Title 5, Subtitle 3 of the State Personnel and Pensions Article.

Md. Code Health-General § 2-608. Notice provided to employees

An employer shall:

(1) Conspicuously display notices of the protections
provided to and obligations required of its employees under this subtitle; and

(2) Use any appropriate means to inform its
employees of the protections and obligations provided under this subtitle.

Md. Code Health-General § 2-609. Limitations, pleadings, and burden of proof for
civil actions filed by State

In general

(a) A civil action filed under this
subtitle may not be filed after the later of:

(1) 6 years after the date on which the underlying
violation of § 2-602(a) of this subtitle occurred; or

(2) 3 years after the date when facts material to
the right of action are known by the relator, the State’s Inspector General, or
the Director of the State’s Medicaid Fraud Control Unit or reasonably should
have been known, but in no event more than 10 years after the date on which the
underlying violation of § 2-602(a) of this subtitle is committed.

Activities
occurring prior to October 1, 2010

(b) A civil action may be filed under
this subtitle for activity that occurred prior to October 1, 2010, if the
limitations period under subsection (a) of this section has not lapsed.

Filing or amending complaint by State

(c) If the State elects to intervene
and proceed with an action brought under this subtitle, the State, through the
Office of the Attorney General, may:

(1) File its own complaint; or

(2) Amend the complaint of the person who brought
the action to clarify, add detail to the complaint, or add additional claims to
the complaint.

Relation back of State pleading

(d) To the extent that the claim of
the State arises out of the conduct, transactions, or occurrences set forth, or
attempted to be set forth by a person, a State pleading relates back to the
filing date of the complaint of the person who originally brought the action.

Burden of proof

(e) In an action filed under this
subtitle, all essential elements of the cause of action, including damages,
shall be proven by a preponderance of the evidence.

Effect of guilty plea or verdict

(f) Notwithstanding any other
provision of law or rule of procedure or evidence in the Maryland Rules, a
final judgment rendered in favor of the State in any criminal proceeding
charging fraud or false statements, whether on a verdict after trial or on a
plea of guilty or nolo contendere, shall stop the defendant from denying the
essential elements of the offense in any action filed under this subtitle that
involves the same act, transaction, or occurrence as in the criminal
proceeding.

Md. Code Health-General § 2-610. Remedies, coordination of investigations by State,
and regulations

Available remedies

(a) Any remedy provided under this
subtitle is in addition to any other appropriate legal or equitable relief
provided under any other applicable State or federal statute or regulation.

Coordination of investigations

(b)

(1) The State shall make all reasonable efforts to
coordinate any investigation of an alleged violation under this subtitle with
any investigation conducted by the federal government involving the same
violation.

(2) The State’s objective shall be to avoid
unnecessary duplication of effort on the part of the person alleged to have
committed the violation and to minimize the burden of the investigation on the
person.

Disposition of penalties or damages

(c)

(1) Except as provided under paragraph (2) of this subsection, the Comptroller shall deposit any civil penalty or damages collected under this subtitle in the General Fund of the State.
(2) (i) If a violation of this subtitle affects any of the following funds, the Comptroller shall deposit any civil penalty or damages collected by the State under this title into the affected fund:
1. A fund that is not subject to § 7-302 of the State Finance and Procurement Article;
2. A special fund requiring the reversion of appropriated funds to the special fund under § 7-304 of the State Finance and Procurement Article;
3. A fund under the jurisdiction of the Board of Trustees for the State Retirement and Pension System; or
4. A fund under the jurisdiction of the State Employee and Retiree Health and Welfare Benefits Program.
(ii) If more than one fund is affected by a violation of this subtitle, the Comptroller shall deposit any civil penalty or damages collected by the State into the appropriate fund or the General Fund of the State on a pro rata basis.

Regulations

(d) The Department or the Inspector
General of the Department may adopt regulations to carry out the provisions of
this subtitle.

Md. Code Health-General § 2-611. Reporting requirements

Number of civil actions filed, judgments, and claims by State

(a) Beginning October 1, 2010, the
Inspector General of the Department and the Director of the Medicaid Fraud
Control Unit in the Office of the Attorney General shall report annually to the
General Assembly, in accordance with § 2-1257 of the State Government Article,
the following information for the previous fiscal year:

(1) The number of civil actions filed under this
subtitle;

(2) The number of civil actions under this subtitle
in which a judgment was entered, whether by settlement or adjudication; and

(3) The number of claims made by the State based on
alleged violations of § 2-602(a) of this subtitle that are settled without the
filing of a civil action under this subtitle.

Information relating to filing, defendants, and alleged violation or violation

(b) Unless the action is under seal
in accordance with § 2-604 of this subtitle, for each civil action reported
under subsection (a)(1) or (2) of this section, the report shall state:

(1) Whether the action was filed by the State or by
a person on behalf of the State and, if filed by a person, whether the State
intervened and proceeded with the action;

(2) The name of the defendant and the following
information about the defendant:

(i) The number of employees and any other data relevant
to the size of the defendant;

(ii) The amount of payments made to the defendant in
the year prior to the filing of the action from State health plans and, to the
extent known by the Inspector General and the Medicaid Fraud Control Unit, from
other sources; and

(iii) Whether the defendant is a minority-owned
business enterprise as defined by § 14-301 of the State Finance and Procurement
Article;

(3) A description of the violation or alleged
violation of § 2-602 of this subtitle; and

(4) The amount sought in the action and, if
applicable, the amount for which the defendant is liable under a settlement
agreement or court order.

Information relating to resolution and amount paid and collected by State

(1) A description of the violation or alleged
violation of § 2-602 of this subtitle;

(2) The resolution of the claim;

(3) The amount, if any, the person against whom the
claim was made agreed to pay in settlement of the claim; and

(4) The amount, if any, collected by the State.

Maryland Whistleblower Law: The Maryland False Claims Act

Md. Code General Provisions § 8-101. Definitions

In general

(a) In this title the following words
have the meanings indicated.

Claim

(b)

(1) “Claim” means a request or demand, under a
contract or otherwise, for money or other property, whether or not the
governmental entity has title to the money or property, that is:

(i) presented to an officer, employee, or agent of a
governmental entity; or

(ii) made to a contractor, a grantee, or another
recipient, if the money or other property is to be spent or used on a
governmental entity’s behalf or to advance an interest of a governmental entity,
and the governmental entity:

1. provides or has provided any portion of the money
or other property requested or demanded; or

2. will reimburse the contractor, grantee, or other
recipient for any portion of the money or other property that is requested or
demanded.

(2) “Claim” does not include requests or demands for
money or other property that a governmental entity has paid to an individual as
compensation for employment or as an income subsidy with no restrictions on
that individual’s use of the money or other property.

Employee

(1) for and under the control and direction of an
employer; and

(2) under an employer’s promise or implied promise
of payment of wages or other remuneration.

Employer

(d) “Employer” means a person or
group of persons that, acting directly or indirectly on behalf of another
person or group of persons:

(1) allows an employee to perform services under the
employer’s control and direction; and

(2) promises or implies that the employee will
receive wages or other remuneration in payment for the performance of those
services.

Governmental entity

(e) “Governmental entity” means:

(1) the State;

(2) a county; or

(3) a municipal corporation.

Knowing or knowingly

(f)

(1) “Knowing” or “knowingly” means, with respect to
information and without requiring proof of specific intent to defraud, that a
person:

(i) has actual knowledge that the information is
false;

(ii) acts in deliberate ignorance of the truth or
falsity of the information; or

(iii) acts in reckless disregard of the truth or
falsity of the information.

(2) “Knowing” or “knowingly” does not mean, with
respect to information, that a person acts in a manner that constitutes a
mistake or negligence.

Material

(g) “Material” means having a natural
tendency to influence or be capable of influencing the payment or receipt of
money or other property.

Obligation

(h) “Obligation” means an established
duty, whether or not fixed, arising from:

(1) an express or implied:

(i) contractual relationship;

(ii) grantor-grantee relationship; or

(iii) licensor-licensee relationship;

(2) a fee-based or similar relationship;

(3) statute or regulation; or

(4) the retention of an overpayment.

Public body

(i) “Public body” means:

(1) the General Assembly or any other elected body;

(2) a member or an employee of the General Assembly
or any other elected body;

(3) a State court;

(4) a member or an employee of a State court;

(5) a State or local regulatory, administrative, or
public agency or authority;

(6) an instrumentality of a State or local
regulatory, administrative, or public agency or authority;

(7) a State or local law enforcement agency,
prosecutorial office, or police or peace officer;

(8) a State or local department of an executive
branch of government; or

(9) a division, a board, a bureau, an office, a
committee, or a commission of any of the public bodies listed in this
subsection.

Retaliatory action

(j) “Retaliatory action” means
discharging, suspending, demoting, threatening, harassing, or discriminating
against an employee, a contractor, or an agent as a result of an activity
described in § 8-107(a) of this title.

Supervisor

(k) “Supervisor” means an individual
within an employer’s organization who has the authority to:

(1) direct and control the work performance of an
employee; or

(2) take corrective action regarding the violation
of a law or regulation that is the subject of a complaint or charge under this
title.

Md. Code General Provisions § 8-102. False or fraudulent claims prohibited

Application of section

(a) This section does not apply to
claims, records, or statements related to State or local taxes.

Actions subject to discipline

(b) A person may not:

(1) knowingly present or cause to be presented a
false or fraudulent claim for payment or approval;

(2) knowingly make, use, or cause to be made or used
a false record or statement material to a false or fraudulent claim;

(3) conspire to commit a violation under this title;

(4) have possession, custody, or control of money or
other property used or to be used by or on behalf of a governmental entity and
knowingly deliver or cause to be delivered to the governmental entity less than
all of that money or other property;

(5)

(i) be authorized to make or deliver a receipt or
other document certifying receipt of money or other property used or to be used
by a governmental entity; and

(ii) make or deliver a receipt or document intending
to defraud the governmental entity, knowing that the information contained in
the receipt or document is not true;

(6) knowingly buy or receive as a pledge of an
obligation or a debt publicly owned property from an officer, employee, or
agent of a governmental entity who lawfully may not sell or pledge the
property;

(7) knowingly make, use, or cause to be made or used
a false record or statement material to an obligation to pay or transmit money
or other property to a governmental entity;

(8) knowingly conceal, or knowingly and improperly
avoid or decrease, an obligation to pay or transmit money or other property to
a governmental entity, including misrepresenting the time at which a trade was
made to make the transaction appear less favorable; or

(9) knowingly make any other false or fraudulent
claim against a governmental entity.

Fines and damages

(c)

(1) A person that is found to have violated
subsection (b) of this section is liable to the governmental entity for:

(i) a civil penalty of not more than $10,000 for
each violation; and

(ii) an additional amount of not more than three
times the amount of damages that the governmental entity sustains as a result
of the acts of that person in violation of subsection (b) of this section.

(2) The total amount owed by a person under
paragraph (1) of this subsection may not be less than the amount of the actual
damages the governmental entity incurs as a result of the person’s violation of
subsection (b) of this section.

Factors in determining amount of fines or damages

(d) In determining the appropriate
amount of fines and damages under subsection (c) of this section, the court
shall consider:

(1) the number, nature, and severity of the
violations of this title for which the person has been found liable;

(2) the number, nature, and severity of any previous
violations of this title;

(3) the degree of loss suffered by the governmental
entity;

(4) the person’s history of billing compliance;

(5) whether the person has a compliance program in
place;

(6) the extent to which the person has taken steps
to address and correct the violation since the person became aware of the
violation;

(7) any funds previously returned to the
governmental entity in compliance with federal requirements regarding
overpayments, to the extent the funds represented losses to the governmental
entity caused by the violation;

(8)

(i) whether the person self-reported the violation;

(ii) the timeliness of the self-reporting;

(iii) the extent to which the person otherwise
cooperated in the investigation of the violation; and

(iv) the extent to which the person had prior
knowledge of an investigation or other action relating to the violation; and

(9) any other factor as justice requires.

Construction with criminal, civil, and administrative penalties

(e) The penalties provided in
subsection (c) of this section are in addition to any criminal, civil, or
administrative penalties provided under any other State or federal statute or
regulation.

Md. Code General Provisions § 8-103. Civil actions filed by governmental entity

In general

(a) If a governmental entity finds
that a person has violated or is violating § 8-102 of this title, the
governmental entity may file a civil action in a court of competent
jurisdiction within the State against the person.

Penalties

(b) In filing a civil action under this section, the governmental entity may seek:
(1) the penalties provided under § 8-102(c) of this title; and
(2) subject to the guidelines under § 8-105(b)(4) of this subtitle, court costs and attorney’s fees.

Filing
certain other actions based on same underlying act prohibited

(c) A governmental entity may not
maintain an action under this section if the governmental entity has filed a
civil action based on the same underlying act under § 2-603 of the
Health–General Article or has sought enforcement by the Attorney General under
§ 11-205 or § 11-205.1 of the State Finance and Procurement Article.

Md. Code General Provisions § 8-104. Civil actions filed by persons

In general

(a)

(1)

(i) A person may file a civil action on behalf of
the person and the governmental entity in a court of competent jurisdiction
within the State against a person who has acted or is acting in violation of §
8-102 of this title.

(ii) A civil action filed under subparagraph (i) of
this paragraph shall be brought in the name of the governmental entity.

(2) A person filing an action under this section may
seek:

(i) the penalties provided under § 8-102(c) of this
title; and

(ii) subject to the guidelines set forth in §
8-105(a)(4) of this title, court costs and attorney’s fees.

(3)

(i) The person shall serve on the governmental
entity a copy of the complaint and a written disclosure of substantially all
material evidence and information that the person possesses, in accordance with
the provisions of Title 2 of the Maryland Rules for serving process on the
State or a local entity.

(ii)

1. The complaint shall be filed in camera and shall
remain under seal for at least 60 days.

2. The complaint may not be served on the defendant
until the complaint is unsealed and the court orders the complaint served.

3. Within 60 days after the governmental entity is
served with the complaint and the material evidence and information, the
governmental entity may elect to intervene and proceed with the action.

(4)

(i) For good cause shown, the governmental entity
may move the court for extensions of the time during which the complaint
remains under seal under paragraph (3)(ii)1 of this subsection.

(ii) Any motions made under subparagraph (i) of this
paragraph may be supported by affidavits or other submissions in camera.

(5)

(i) The defendant may not be required to answer a
complaint filed under this section until after the complaint is:

1. unsealed and ordered by the court to be served;
and

2. served on the defendant in accordance with Title
2 of the Maryland Rules.

(iii) During the period in which the complaint is
under seal, if the governmental entity’s investigation reveals that the act,
transaction, or occurrence that gave rise to the alleged violation of this
title is reasonably likely to be continuing, the governmental entity shall
notify the defendant as soon as practicable without jeopardizing the course and
conduct of the governmental entity’s or the federal government’s investigation
of the violation, compromising the development of evidence, or violating any
State or federal law.

(i) intervene and proceed with the action in a court
of competent jurisdiction within the State; or

(ii) notify the court that it will not intervene and
proceed with the action.

(7) If the governmental entity does not elect to
intervene and proceed with the action under paragraph (6) of this subsection,
before unsealing the complaint, the court shall dismiss the action.

(8) If a person initiates an action under this
section, no person other than the governmental entity may intervene in the
action or initiate a related action based on the facts underlying the pending
action.

Intervention by governmental entity

(b)

(1) If the governmental entity intervenes and
proceeds with the action under subsection (a)(6)(i) of this section:

(i) the governmental entity shall have the primary
responsibility for proceeding with the action and may not be bound by any act
of the person who initiated the action; and

(ii) subject to paragraphs (3) through (6) of this
subsection, the person who initiated the action may continue as a party to the
action.

(2)

(i) During an investigation by the governmental
entity conducted either independently or in conjunction with a civil action
filed under this title, the governmental entity shall have the same rights of
discovery as a civil litigant in the circuit court under Title 2, Chapter 400
of the Maryland Rules.

(ii) A person from whom the governmental entity
seeks discovery shall be considered a party under Title 2, Chapter 400 of the
Maryland Rules.

(3)

(i) Notwithstanding the objections of the person
initiating the action, the governmental entity may elect at any point to
withdraw its intervention as a party to the action.

(ii) If the governmental entity elects to withdraw
as a party to the action:

1. the governmental entity shall notify the court
and the party initiating the action; and

2. the court shall dismiss the action.

(4) Notwithstanding the objections of the person initiating
the action, if the court determines after a hearing that a proposed settlement
is fair, adequate, and reasonable under the circumstances, the governmental
entity may settle a civil action filed under this section.

(5) On motion of the governmental entity or the
defendant or on the court’s own motion, the court may impose limitations on the
participation of the person initiating an action under this section if:

(i) the governmental entity shows that the person’s
unrestricted participation in the action would:

1. interfere with or unduly delay the governmental
entity in its pursuit of the civil action; or

2. be repetitious, irrelevant, or harassing to the
defendant; or

(ii) the defendant shows that unrestricted
participation by the person initiating the action would harass the defendant or
cause the defendant undue burden or unnecessary expense.

(6) Limitations imposed by the court under paragraph
(5) of this subsection may include:

(i) a limitation on the number of witnesses the
person may call to testify;

(ii) a limitation on the length of the testimony of
witnesses called by the person;

(iii) a limitation on the person’s cross-examination
of witnesses; and

(iv) a limitation on the participation of the person
in the litigation.

Stay of discovery

(c)

(1) On a showing in camera by the governmental
entity that certain actions of discovery by the person initiating the action
would interfere with the governmental entity’s investigation or prosecution of
a criminal or civil matter arising out of the same facts, the court may stay
the discovery for a period of not more than 60 days.

(2) The court may extend the 60-day period on a
further showing in camera that:

(i) the governmental entity has pursued the criminal
or civil investigation or proceeding with reasonable diligence; and

(ii) any proposed discovery in the civil action will
interfere with the ongoing criminal or civil investigation or proceeding.

Md. Code General Provisions § 8-105. Damages

Award to person initiating action in which governmental entity intervened and prevailed

(a)

(1) If the governmental entity intervenes and
proceeds with an action filed under § 8-104 of this title and the governmental
entity prevails, the court shall award the person initiating the action an
amount that is:

(i) not less than 15% and not more than 25% of the
proceeds of the action or settlement of the claim; and

(ii) proportional to the amount of time and effort
that the person substantially contributed to the final resolution of the civil
action.

(2)

(i) If the court finds that the action is based
primarily on disclosures of specific information relating to allegations or
transactions in a criminal, a civil, or an administrative hearing, in a
legislative or an administrative report, a hearing, an audit, or an investigation,
or from the news media, the court may make an award to the person initiating
the action that:

1. the court considers appropriate, taking into
account the significance of the information and the role of the person
initiating the action in advancing the case to litigation; and

2. does not exceed 10% of the proceeds of the
action.

(ii) The information described in subparagraph (i)
of this paragraph does not include information disclosed and provided by the
person initiating the action.

(3) Any payment to a person under paragraph (1) or
(2) of this subsection shall be made from the proceeds of the action.

(4)

(i) In addition to the amount provided under
paragraphs (1) and (2) of this subsection, a court may award the person
initiating the action:

1. an amount for reasonable expenses that the court
finds to have been necessarily incurred; and

2. reasonable attorney’s fees and costs.

(iii) Any expenses, fees, and costs awarded under
this paragraph shall be awarded against the defendant.

Reduction of share of proceeds

(b)

(2) In reducing the share of the proceeds of the
person initiating the action under this subsection, the court shall consider:

(i) the role of the person in advancing the case to
litigation; and

(ii) any relevant circumstances relating to the
underlying violation.

(3)

(i) If the person initiating a civil action under §
8-104 of this title is convicted of criminal conduct arising from the person’s
participation in the violation on which the action was based prior to a final
determination of the action, the person:

1. shall be dismissed from the action; and

2. may not receive any share of the proceeds of the
action.

(ii) The dismissal of the person initiating the
action in accordance with this paragraph does not prejudice the right of the
governmental entity to continue the action.

(4) If the person initiating a civil action under §
8-104 of this title is convicted of criminal conduct arising from the person’s
participation in the violation on which the action was based after the proceeds
from the action are awarded to that person, the court shall order the person to
repay the proceeds previously awarded.

Attorney’s fees and expenses

(c) A court may award reasonable
attorney’s fees and expenses to a defendant and against the person initiating
the action if:

(1) the defendant prevails in the action; and

(2) the court finds that the claim of the person
initiating the action was brought primarily for purposes of harassment or
otherwise was brought in bad faith.

Md. Code General Provisions § 8-106. Jurisdiction over specific claims and
governmental liability for expenses of civil actions filed by persons
prohibited

Actions against certain state officers

(a) No court in this State shall have
jurisdiction over an action filed under § 8-104 of this title against any
member of the Legislative Branch or the Judiciary of the State, any member of
the Governor’s Executive Council, the Attorney General, the Comptroller, or the
State Treasurer if the action is based on evidence or information known to the
governmental entity when the action was filed.

Actions brought by public employee or official based upon knowledge gained during employment

(b) A civil action may not be brought
under this title by a person who is or was a public employee or public official
if the allegations of the action are based substantially on:

(1) allegations of wrongdoing or misconduct that the
person had a duty or an obligation to report or investigate within the scope of
the person’s public employment or office; or

(2) information or records to which the person had
access as a result of the person’s public employment or office.

Actions based upon claims subject to existing proceedings

(c) A person may not bring an action
under § 8-104 of this title that is based on allegations or transactions that
are the subject of a civil action or an administrative civil money penalty
proceeding in which the governmental entity is already a party.

Actions based upon certain public disclosures

(d)

(1) Except as provided in paragraphs (2) and (3) of
this subsection, no court in this State shall have jurisdiction over an action
filed under § 8-104 of this title that is based on the public disclosure of
allegations or transactions:

(i) in a criminal, a civil, or an administrative
hearing;

(ii) in a legislative or an administrative report, a
hearing, an audit, or an investigation; or

(iii) from the news media.

(2) Paragraph (1) of this subsection does not apply
if the action is initiated by a person that:

(i) has direct and independent knowledge of the
information on which the allegations are based; and

(ii) has voluntarily provided the information to the
governmental entity before filing an action under § 8-104 of this title that is
based on the information.

(3) A governmental entity, through the Attorney
General, may file a civil action under § 8-103 of this title based on a public
disclosure described in paragraph (1) of this subsection.

Expenses incurred by person bringing action

(e) The governmental entity is not
liable for expenses that a person incurs in bringing an action under § 8-104 of
this title.

Actions brought by public employee or officer based upon oversight duties

(f) A person that is or was employed
by the State, a local government, or any other political subdivision of the
State as an auditor, an investigator, an attorney, a financial officer, or a
contracting officer may not bring an action under § 8-104 of this title that is
based on allegations or transactions that the person discovered or learned of
while acting in the person’s capacity as an auditor, an investigator, an
attorney, a financial officer, or a contracting officer for the State, local
government, or other political subdivision of the State.

Md. Code General Provisions § 8-107. Retaliatory actions against employees,
contractors, or grantees prohibited

Actions protected by section

(a) A person may not take a
retaliatory action against an employee, a contractor, or a grantee because the
employee, contractor, or grantee:

(1) acts lawfully in furtherance of an action filed
under this title, including an investigation for, initiation of, testimony for,
or assistance in an action filed or to be filed under this title;

(2) discloses or threatens to disclose to a
supervisor or to a public body an activity, a policy, or a practice of the
person that the employee, contractor, or grantee reasonably believes is in
violation of § 8-102 of this title or a regulation adopted under this title;

(3) provides information to, or testifies before, a
public body conducting an investigation, a hearing, or an inquiry into a
violation of § 8-102 of this title or a regulation adopted under this title
that is allegedly or actually committed by the person; or

(4) objects to or refuses to participate in any activity,
policy, or practice that the employee, contractor, or grantee reasonably
believes is in violation of § 8-102 of this title or a regulation adopted under
this title.

Remedies available

(b)

(1) An employee, a contractor, or a grantee may file
a civil action against a person other than a supervisor in State government, an
appointing authority in State government, or the head of a principal unit in
State government if the person takes a retaliatory action against the employee,
contractor, or grantee in violation of subsection (a) of this section.

(2) The employee, contractor, or grantee may seek in
the civil action:

(i) an injunction to restrain a continuing violation
of subsection (a) of this section;

(ii) reinstatement to the same seniority status held
before the retaliatory action;

(iii) reinstatement of full fringe benefits and
seniority rights;

(iv) two times the amount of lost wages, benefits,
and other remuneration, including any interest accumulated;

(v) payment by the person of reasonable costs and
attorney’s fees;

(vi) punitive damages;

(vii) an assessment of a civil penalty:

1. not exceeding $1,000 for the first violation; and

2. not exceeding $5,000 for each subsequent
violation; and

(viii) any other relief necessary to make the
employee, contractor, or grantee whole.

(3) The remedies provided under this section do not
diminish or affect the rights, privileges, or remedies available to the
employee, contractor, or grantee under:

(i) any other federal or State statute or
regulation; or

(ii) any collective bargaining agreement or employee
contract.

Article governing complaint

(c) A State employee who is subject
to retaliatory action in violation of subsection (a) of this section may file a
complaint under Title 5, Subtitle 3 of the State Personnel and Pensions
Article.

Md. Code General Provisions § 8-108. Limitations, pleadings, and burden of proof

In general

(a) A civil action filed under this
title may not be filed after the later of:

(1) 6 years after the date on which the underlying
violation of § 8-102 of this title occurred; or

(2) 3 years after the date when facts material to
the right of action are known or reasonably should have been known by the
person initiating the action or the official of the governmental entity charged
with responsibility for acting under the circumstances, but in no event more
than 10 years after the date on which the underlying violation of § 8-102 of
this title occurred.

Filing or amending complaint by governmental entity

(b) If the governmental entity elects
to intervene and proceed with an action brought under this title, the
governmental entity, through the Office of the Attorney General or the attorney
for the local governmental entity, may:

(1) file its own complaint; or

(2) amend the complaint of the person that brought
the action to clarify, add detail to the complaint, or add additional claims to
the complaint.

Relation back of pleading by governmental entity

(c) To the extent that the claim of
the governmental entity arises out of the conduct, transactions, or occurrences
set forth, or attempted to be set forth by a person, a pleading by the
governmental entity relates back to the filing date of the complaint of the
person that originally brought the action.

Burden of proof

(d) In an action filed under this title,
all essential elements of the cause of action, including damages, shall be
proven by a preponderance of the evidence.

Effect of guilty plea or verdict

(e) Notwithstanding any other
provision of law or rule of procedure or evidence in the Maryland Rules, a
final judgment rendered in favor of the governmental entity in any criminal
proceeding charging fraud or false statements, whether on a verdict after trial
or on a plea of guilty or nolo contendere, shall stop the defendant from
denying the essential elements of the offense in any action filed under this
title that involves the same act, transaction, or occurrence as in the criminal
proceeding.

Md. Code General Provisions § 8-109. Remedies and coordination of investigations by
governmental entity

Available remedies

(a) Any remedy provided under this
title is in addition to any other appropriate legal or equitable relief
provided under any other applicable State or federal statute or regulation.

Coordination of investigations

(b)

(1) The governmental entity shall make all
reasonable efforts to coordinate any investigation of an alleged violation
under this title with any investigation conducted by the federal government
involving the same violation.

(2) The governmental entity’s objective shall be to
avoid unnecessary duplication of effort on the part of the person alleged to
have committed the violation and to minimize the burden of the investigation on
the person.

Disposition of penalties or damages

(c)

(1) Except as provided under paragraph (2) of this subsection, the Comptroller shall deposit any civil penalty or damages collected by the State under this title into the General Fund of the State.
(2)(i) If a violation of this title affects any of the following funds, the Comptroller shall deposit any civil penalty or damages collected by the State under this title into the affected fund:
1. a fund that is not subject to § 7-302 of the State Finance and Procurement Article;
2. a special fund requiring the reversion of appropriated funds to the special fund under § 7-304 of the State Finance and Procurement Article;
3. a fund under the jurisdiction of the Board of Trustees for the State Retirement and Pension System; or
4. a fund under the jurisdiction of the State Employee and Retiree Health and Welfare Benefits Program.
(ii) If more than one fund is affected by a violation of this title, the Comptroller shall deposit any civil penalty or damages collected by the State into the appropriate fund or the General Fund of the State on a pro rata basis.

False Claims Fund

(d)

(1) There is a False Claims Fund.
(2) The purpose of the Fund is to support the operations of the Attorney General in carrying out this title.
(3) The Attorney General shall administer the Fund.
(4)(i) The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.
(ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(5) The Fund consists of:
(i) all attorney’s fees and costs collected by the State by judgment, settlement, agreement, or otherwise under this title;
(ii) money appropriated in the State budget to the Fund;
(iii) interest earnings; and
(iv) any other money from any other source accepted for the benefit of the Fund.
(6) The Fund may be used only for the Attorney General to investigate and litigate suspected violations of this title.
(7)(i) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(ii) Any interest earnings of the Fund shall be credited to the Fund.
(8) Expenditures from the Fund may be made only in accordance with the State budget.
(9) Money expended from the Fund is supplemental to and is not intended to take the place of funding that otherwise would be

Md. Code General Provisions § 8-110. Reporting requirements

Number of civil actions, judgments, and claims

(a) Beginning October 1, 2016, the
Office of the Attorney General shall report annually to the General Assembly,
in accordance with § 2-1257 of the State Government Article, the following
information for the previous fiscal year:

(1) the number of civil actions filed under this
title;

(2) the number of civil actions under this title in
which a judgment was entered, whether by settlement or adjudication; and

(3) the number of claims made by the governmental
entity based on alleged violations of § 8-102 of this title that are settled
without the filing of a civil action under this title.

Information relating to filing, defendants, and violations or alleged violations

(b) Unless the action is under seal
in accordance with § 8-104 of this title, for each civil action reported under
subsection (a)(1) or (2) of this section, the report shall state:

(1) whether the action was filed by the governmental
entity or by a person on behalf of the governmental entity and, if filed by a
person, whether the governmental entity intervened and proceeded with the
action;

(2) the name of the defendant;

(3) a description of the violation or alleged
violation of § 8-102 of this title; and

(4) the amount sought in the action and, if
applicable, the amount for which the defendant is liable under a settlement
agreement or court order.

Information relating to resolution and amount paid and collected by governmental entity

(1) a description of the violation or alleged
violation of § 8-102 of this title;

(2) the resolution of the claim;

(3) the amount, if any, the person against whom the
claim was made agreed to pay in settlement of the claim; and

(4) the amount, if any, collected by the
governmental entity.

Submission of other information

(d) The attorney for each county and
the attorney for each municipal corporation shall submit to the Office of the
Attorney General any information the Office determines is necessary to complete
the report required under this section.

Md. Code General Provisions § 8-111. Short title

This title may be cited as the
Maryland False Claims Act.

Maryland Whistleblower Law: The Maryland Whistleblower Reward Program

Md. Code Tax-General § 1-401. Definitions

In general

(a) In this subtitle the following
words have the meanings indicated.

Covered enforcement action

(b) “Covered enforcement action”
means an enforcement action brought by the Comptroller under this article that
concerns:

(1)

(i) the State and county income tax liability of an
individual taxpayer or a couple that is married and files jointly whose federal
adjusted gross income is at least $250,000; or

(ii) the State and county tax liability of a
business, including those persons who are jointly and severally liable for the
State tax liability of a business under this article, the annual gross receipts
or sales of which are at least $2,000,000; and

(2) taxes in dispute exceeding $250,000.

Original information

(1) is derived from the independent knowledge or
analysis of a whistleblower;

(2) is not known to the Comptroller from any other
source, unless the whistleblower is the original source of the information;

(3) is not exclusively derived from an allegation
made in a judicial or administrative hearing, in a governmental report,
hearing, audit, or investigation or from the news media, unless the
whistleblower is a source of the information; and

(4) is provided to the Comptroller in a sworn
affidavit for the first time on or after October 1, 2021.

Related action

(d) “Related action” means any
judicial or administrative action brought by a State or local agency or entity
based on the original information provided by a whistleblower to the
Comptroller under this subtitle.

Whistleblower

(e)

(1) “Whistleblower” means an individual or entity
who provides, or two or more individuals or entities acting jointly who
provide, in accordance with this subtitle, information to the Comptroller in a
sworn affidavit relating to a violation of State tax law, including a rule or
regulation, that has occurred, is ongoing, or is about to occur.

(2) “Whistleblower” includes an individual who
provides information to a law enforcement agency before providing the
information to the Comptroller.

Md. Code Tax-General § 1-402. Eligibility for award; allocation of awards

In general

(a) Subject to the limitations of
this subtitle and except as provided in subsection (b) of this section, a
whistleblower who voluntarily provides original information to the Comptroller
in a sworn affidavit that, because of the original information, results in a
final assessment in a covered enforcement action, or a successful outcome
against a taxpayer in a related action, shall be entitled to receive a monetary
award of at least 15% but not exceeding 30% of the taxes, penalties, and
interest collected through the enforcement action or related action.

Material addition to information

(b) A whistleblower who provides
information to the Comptroller in a sworn affidavit that is related to original
information previously reported to the Comptroller by another whistleblower who
is eligible for an award under subsection (a) of this section may not be
entitled to an award unless the information provided by the whistleblower materially
adds to the information previously reported to the Comptroller.

Two or more whistleblowers

(c) If two or more whistleblowers are
eligible for an award under subsection (a) of this section arising out of the
same covered enforcement action or related action:

(1) the total award may not exceed 30% of the taxes,
penalties, and interest collected through the enforcement action or related
action; and

(2) the Comptroller shall determine the allocation
of the award among the eligible whistleblowers.

Md. Code Tax-General § 1-403. Amount of award; exceptions to eligibility

Amount of award

(a)

(1) The determination of the amount of an award made
in accordance with § 1-402 of this subtitle shall be solely in the discretion
of the Comptroller.

(2) In determining the amount of the award, the
Comptroller shall consider:

(i) the significance of the information provided by
the whistleblower to the success of the covered enforcement action or related
action;

(ii) the degree of assistance provided by the
whistleblower and any legal representative of the whistleblower in the covered
enforcement action or related action;

(iii) the amount of the unpaid taxes owed the State
that may be recovered under the covered enforcement action or related action;

(iv) the interest of the State in deterring
violations of this article and promoting the reporting by whistleblowers of
information relating to those violations; and

(v) any additional relevant factors that the
Comptroller may establish by regulation.

Exceptions to eligibility

(b) An award may not be provided to a
whistleblower if the Comptroller determines that the whistleblower:

(1) is, or was at the time that the whistleblower
acquired the original information provided to the Comptroller, a member, an
officer, or an employee of a federal, state, or local law enforcement agency
responsible for the enforcement of tax-related matters;

(2) was convicted of a criminal violation related to
the covered enforcement action or related action for which the whistleblower
otherwise could receive an award under this section;

(3) could have been convicted of a criminal
violation or held personally liable for the tax liability related to the
covered enforcement action or related action for which the whistleblower
otherwise could receive an award under this section had the whistleblower
provided the original information before the expiration of any applicable
statute of limitations for prosecution or assessment of the whistleblower; or

(4) when submitting information under this subtitle,
knowingly and willfully made false, fictitious, or fraudulent statements to the
Comptroller or used any false writing or document knowing the writing or
document contained a false, fictitious, or fraudulent statement or entry.

Challenges to determinations

(c)

(1) A determination of the Comptroller under this
section may be challenged in accordance with Title 10, Subtitle 2 of the State
Government Article if the challenge is brought within 45 days of the date of
the determination.

(2) In bringing a challenge in accordance with
paragraph (1) of this subsection, the whistleblower may not challenge:

(i) the decision to conduct or the method of
conducting an investigation arising from the original information provided by
the whistleblower;

(ii) the amount of any unpaid taxes, penalties, or
interest due to the State arising from the original information provided by the
whistleblower;

(iii) the result of a covered enforcement action or
related action arising from the original information provided by the
whistleblower; or

(iv) any settlement between the State and a person
having a tax liability that arises from the original information provided by
the whistleblower.

Md. Code Tax-General § 1-404. Contract; counsel; notice; disclosure of information

Contract not required

(a) A contract with the Comptroller,
the Office of the Attorney General, or any other agency may not be required in
order for a whistleblower to receive an award under this subtitle.

Representation by counsel

(b)

(1) A whistleblower who makes a claim for an award
under this subtitle may be represented by counsel.

(2)

(i) A whistleblower who anonymously makes a claim
for an award under this subtitle shall be represented by counsel if the
whistleblower anonymously submits the information on which the claim is based.

(ii) Before payment of an award claimed in
accordance with subparagraph (i) of this paragraph, the whistleblower shall
disclose the whistleblower’s identity and provide any other information that
the Comptroller may require, directly or through counsel.

(3) Nothing in this subsection may be construed to
imply or infer that a whistleblower is entitled to compensation for any costs
or attorney’s fees incurred to claim an award under this subtitle.

Notice

(c) Within 15 days after receiving
original information provided by a whistleblower, the Comptroller shall provide
written notice to the whistleblower or, if the whistleblower is represented by
counsel, the whistleblower’s attorney that:

(1) acknowledges that the original information has
been received by the Comptroller; and

(2) indicates the name of the individual in the
Comptroller’s Office who shall serve as a contact with the whistleblower.

Disclosure of information

(d)

(1) Information that could reasonably be expected to
reveal the identity of the whistleblower is not subject to disclosure under the
Public Information Act.

(2) Except as provided in paragraph (3) of this
subsection, the Comptroller may not disclose any information that could
reasonably be expected to reveal the identity of the whistleblower unless that
information is required to be disclosed to a party in connection with an action
or proceeding brought by the Comptroller or otherwise by court order.

(3)

(i) Subject to subparagraph (ii) of this paragraph,
as determined by the Comptroller to be necessary to accomplish the purposes of
this article, information that could be expected to reveal the identity of a
whistleblower may be made available to appropriate regulatory and law
enforcement authorities of this State, another state, the federal government, a
foreign government, or self-regulatory organizations.

(ii) An authority to which the Comptroller makes
information available in accordance with subparagraph (i) of this paragraph
shall agree to maintain that information in accordance with any assurances of
confidentiality that the Comptroller deems appropriate.

Md. Code Tax-General § 1-405. Retaliation

Retaliation prohibited

(a) A current or prospective
employer, contractor, or agent may not discharge, demote, suspend, threaten, or
harass, directly or indirectly, or in any other manner discriminate or
retaliate against an individual in the terms and conditions of employment because
of a lawful act done by that individual:

(1) in providing information to the Comptroller or a
law enforcement agency concerning a possible violation of State tax law,
including a rule or regulation, that has occurred, is ongoing, or is about to
occur;

(2) in initiating, testifying in, or assisting in an
investigation or judicial or administrative action of the Comptroller or law
enforcement agency or a related action;

(3) in reporting a violation of this title to
another governmental entity or to a director, supervisor, or compliance officer
of the employer, contractor, or agent; or

(4) in refusing or declining any agreement that
would provide for arbitration of claims arising under this article.

Relief

(b)

(1) An individual who is discharged, demoted,
suspended, threatened, harassed, or in any other manner discriminated or
retaliated against in the terms and conditions of employment or is otherwise
harmed or penalized by an employer or a prospective employer in violation of
subsection (a) of this section shall be entitled to all relief necessary to
make the individual whole, including:

(i) an injunction to restrain continued
discrimination;

(ii) hiring, contracting, or reinstatement to the
position that the individual would have had but for the discrimination or to an
equivalent position;

(iii) reinstatement of full fringe benefits and
seniority rights;

(iv) compensation for lost wages, benefits, and
other remuneration, plus interest;

(v) removal of any adverse personnel record entries
based on or related to the violation; and

(vi) compensation for any special damages sustained
as a result of the discrimination, including litigation costs and reasonable
attorney’s fees.

(2) An individual seeking relief under this
subsection may bring an action in the appropriate circuit court for relief.

(3) Nothing in this subsection may be construed to
limit the rights, privileges, or remedies of a whistleblower under federal or
State law or under a collective bargaining agreement.

Waiver; recovery of salary and wages

(c)

(1) The rights and remedies provided for under this
section may not be waived by an agreement, a policy form, or a condition of
employment.

(2) Salary and wages earned by a whistleblower
during the whistleblower’s employment and any consideration provided to the
whistleblower in connection with the whistleblower’s severance from employment
may not be recovered by any action brought by the employer if the salary,
wages, or consideration is related to original information provided by the
whistleblower or the covered enforcement action.

Md. Code Tax-General § 1-406. Construction of subtitle

Nothing in this subtitle may be
construed to:

(1) preempt, limit, or restrict the authority or
discretion of the Comptroller to investigate or enforce a violation of this
article;

(2) limit any power otherwise granted in this
article or other laws to the Comptroller, Attorney General, State agencies, or
local governments to investigate or enforce possible violations of this
article;

(3) authorize a private right of action involving a
violation of this article, except as specifically authorized in this article;

(4) prevent or prohibit a person from voluntarily
disclosing any information concerning a violation of this article to any law
enforcement agency or self-regulatory organization; or

(5) preempt, limit, restrict, or otherwise affect
the rights and rewards provided to qui tam plaintiffs under the Maryland False
Claims Act.

Md. Code Tax-General § 1-407. Reports

On or before December 31, 2022, and
each December 31 thereafter, the Comptroller shall report to the Governor and,
in accordance with § 2-1257 of the State Government Article, the General
Assembly on:

(1) the total number of cases reported by
whistleblowers during the previous fiscal year;

(2) the number of cases that resulted in a payout to
a whistleblower during the previous fiscal year;

(3) the total amount of taxes collected by the State
during the previous fiscal year as a result of the original information
provided by whistleblowers; and

(4) the total amount of rewards paid to
whistleblowers under this subtitle during the previous fiscal year.

Md. Code Tax-General § 1-408. Regulations

The Comptroller shall adopt
regulations to implement this subtitle, including regulations establishing
procedures for the submission of original information by whistleblowers and
protocols governing the determination of awards in accordance with this
subtitle and the timely payment of awards to whistleblowers.

Other state qui tam laws

Offices in:

What are the Maryland Whistleblower Laws (the Maryland False Claims Acts and Maryland Whistleblower Reward Program)?

Penalties under the Maryland False Claims Acts

Rewards under the Maryland Whistleblower Laws

Protection from Retaliation under the Maryland Whistleblower Laws

Time Limits (Statute of Limitations) under the Maryland False Claims Acts

MARYLAND WHISTLEBLOWER LAW: FALSE HEALTH CLAIMS ACT

Maryland Whistleblower Law: The Maryland False Claims Act

Maryland Whistleblower Law: The Maryland Whistleblower Reward Program