House Approves False Claims Act Expansion

The state House approved legislation expanding the scope of Connecticut’s False Claim Act May 10, sending the bill to the Senate for additional action.

HB 6826, which applies the Connecticut law to most state programs and benefits, passed the House on a 138-7 vote.

The bill removes provisions in current law that limit it to state-administered health and human services programs.

CBIA opposed the bill when it was reviewed by the Government Administration and Elections Committee in March, but is relieved to see changes to the bill since it was originally introduced last year.

CBIA opposed an identical bill during the 2022 session due to the inclusion of state and municipal business tax filings under the False Claims Act.

Only six states in the country apply their respective False Claims acts to state tax matters.

The inclusion of state and municipal tax matters under any expansion of the law would allow private parties to intervene in the administration, interpretation, and enforcement of tax laws, usurping the authority of the Department of Revenue Services, creating uncertainty, and resulting in the inequitable treatment of taxpayers.

Under the final measure passed Wednesday by the House, the expansion specifically exempts any claim, record, or statement made under any tax law administered by the state or one of its political subdivisions.

For more information, contact CBIA’s Wyatt Bosworth (860.244.1155) | @WyattBosworthCT.