HB39 Alabama 2016 1st Special Session Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

First Special Session 2016

Title

Fraudulent claims, treble damages for persons filing false claims, civil penalties, Attorney General required to investigate and initiate civil actions, retaliatory action by employers prohibited, limitation of actions, Medicaid fraud, crime of further provided for, statutes of limitations revised for certain fraudulent activity, Medicaid False Claims Act, Sec. 22-1-11 am'd.

Summary

HB39 creates the Alabama Medicaid False Claims Act to punish false Medicaid claims with treble damages, penalties, and civil actions, and protects workers who report fraud.

What This Bill Does

It creates the Alabama Medicaid False Claims Act to provide a remedy for fraudulent claims against the Alabama Medicaid program, with treble damages, civil penalties, and recovery of costs including attorney's fees. It lets the Attorney General and private individuals investigate and bring civil actions, using a process similar to a whistleblower suit where private plaintiffs sue in the state's name and the state may join the case. It bars employers from retaliating against workers who disclose information to government or law enforcement about false claims, and provides remedies such as reinstatement, back pay, and damages. It sets time limits for lawsuits and defines key terms like claim, knowing, and person so violations can be pursued in court.

Who It Affects

• Medicaid providers, contractors, or other entities that submit false or fraudulent claims or engage in kickbacks, who would owe treble damages, civil penalties per claim, and court costs; the definition of person includes corporations.
• Employees, contractors, or other workers who report or disclose information about Medicaid fraud to government or law enforcement, who are protected from retaliation and may be eligible for remedies or a share of proceeds in some cases.

Key Provisions

• Creates the Alabama Medicaid False Claims Act, allowing civil penalties per claim (5,500 to 11,000 dollars, adjusted) plus three times damages and recovery of costs.
• Authorizes both the Attorney General and private individuals to investigate and file civil actions, with private actions filed in the state's name and possible state intervention and share of proceeds.
• Prohibits retaliation by employers against employees who report fraud; provides reinstatement, back pay, two times back pay, and other damages for affected workers.
• Defines key terms such as claim, knowing, material, and person for Medicaid fraud and clarifies what counts as false or fraudulent activity.
• Sets a six year statute of limitations for actions, with a three year discovery rule and a ten year outer cap, plus related pretrial and procedural rules.
• Adds criminal penalties for Medicaid fraud offenses currently described in Section 22-1-11; requires knowing conduct, includes safe harbors, and sets a six year limit for prosecution; defines person to include corporations.
• Amends local government spending provisions to clarify that the bill is exempt from Amendment 621 requirements because it creates or amends a crime.
• Allows venue in circuit courts and outlines how complaints, sealing, and possible state intervention work in practice.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Fraud