AL SB85

Amends Section 22-1-11 of the Code of Alabama 1975 to require that persons must knowingly engage in prohibited Medicaid fraud conduct to be subject to criminal penalties, rather than strict liability.

Establishes that criminal penalties do not apply to safe harbor exceptions enumerated in 42 C.F.R. 1001.952, including discounts properly disclosed and reflected in costs, and bona fide employment relationships.

Sets criminal penalties for violations as Class C felony with fines up to $10,000 and imprisonment of 1-5 years, covering false statements on Medicaid applications and unlawful solicitation or payment of remuneration for referrals or purchases of services.

Establishes a six-year statute of limitations for prosecutions under this section, measured from the date of offense completion.

Expands the definition of "person" to include partnerships, corporations, and associations in addition to individuals.