II 

118TH CONGRESS 

1ST SESSION S. 659 

To amend chapter 38 of title 31, United States Code, relating to civil 

remedies, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 6, 2023 

Mr. GRASSLEY (for himself and Mr. DURBIN) introduced the following bill; 

which was read twice and referred to the Committee on the Judiciary 

A BILL 

To amend chapter 38 of title 31, United States Code, 

relating to civil remedies, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Administrative False 

5 Claims Act of 2023’’. 

6 SEC. 2. ADMINISTRATIVE FALSE CLAIMS. 

7 (a) CHANGE IN SHORT TITLE.— 

8 (1) IN GENERAL.—Subtitle B of title VI of the 

9 Omnibus Budget Reconciliation Act of 1986 (Public 

10 Law 99–509; 100 Stat. 1934) is amended— 


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1 (A) in the subtitle heading, by striking 

2 ‘‘Program Fraud Civil Remedies’’ and 

3 inserting ‘‘Administrative False 

4 Claims’’; and 

5 (B) in section 6101 (31 U.S.C. 3801 note), 

6 by striking ‘‘Program Fraud Civil Remedies Act 

7 of 1986’’ and inserting ‘‘Administrative False 

8 Claims Act’’. 

9 (2) REFERENCES.—Any reference to the Pro10 gram Fraud Civil Remedies Act of 1986 in any pro11 vision of law, regulation, map, document, record, or 

12 other paper of the United States shall be deemed a 

13 reference to the Administrative False Claims Act. 

14 (b) REVERSE FALSE CLAIMS.—Chapter 38 of title 

15 31, United States Code, is amended— 

16 (1) in section 3801(a)(3), by amending sub17 paragraph (C) to read as follows: 

18 ‘‘(C) made to an authority which has the 

19 effect of concealing or improperly avoiding or 

20 decreasing an obligation to pay or transmit 

21 property, services, or money to the authority,’’; 

22 and 

23 (2) in section 3802(a)(3)— 


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1 (A) by striking ‘‘An assessment’’ and in2 serting ‘‘(A) Except as provided in subpara3 graph (B), an assessment’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(B) In the case of a claim described in section 

6 3801(a)(3)(C), an assessment shall not be made 

7 under the second sentence of paragraph (1) in an 

8 amount that is more than double the value of the 

9 property, services, or money that was wrongfully 

10 withheld from the authority.’’. 

11 (c) INCREASING DOLLAR AMOUNT OF CLAIMS.—Sec12 tion 3803(c) of title 31, United States Code, is amended— 

13 (1) in paragraph (1), by striking ‘‘$150,000’’ 

14 each place that term appears and inserting 

15 ‘‘$1,000,000’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(3) ADJUSTMENT FOR INFLATION.—The maximum 

18 amount in paragraph (1) shall be adjusted for inflation 

19 in the same manner and to the same extent as civil mone20 tary penalties under the Federal Civil Penalties Inflation 

21 Adjustment Act (28 U.S.C. 2461 note).’’. 

22 (d) RECOVERY OF COSTS.—Section 3806(g)(1) of 

23 title 31, United States Code, is amended to read as fol24 lows: 

25 ‘‘(1)(A) Except as provided in paragraph (2)— 


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1 ‘‘(i) any amount collected under this chapter 

2 shall be credited first to reimburse the authority or 

3 other Federal entity that expended costs in support 

4 of the investigation or prosecution of the action, in5 cluding any court or hearing costs; and 

6 ‘‘(ii) amounts reimbursed under clause (i) 

7 shall— 

8 ‘‘(I) be deposited in— 

9 ‘‘(aa) the appropriations account of 

10 the authority or other Federal entity from 

11 which the costs described in subparagraph 

12 (A) were obligated; 

13 ‘‘(bb) a similar appropriations account 

14 of the authority or other Federal entity; or 

15 ‘‘(cc) if the authority or other Federal 

16 entity expended nonappropriated funds, 

17 another appropriate account; and 

18 ‘‘(II) remain available until expended. 

19 ‘‘(B) Any amount remaining after reimbursements 

20 described in subparagraph (A) shall be deposited as mis21 cellaneous receipts in the Treasury of the United States.’’. 

22 (e) SEMIANNUAL REPORTING.—Section 405(c) of 

23 title 5, United States Code, is amended— 

24 (1) in paragraph (4), by striking ‘‘and’’ at the 

25 end; 


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1 (2) by redesignating paragraph (5) as para2 graph (6); and 

3 (3) by inserting after paragraph (4) the fol4 lowing: 

5 ‘‘(5) information relating to cases under chap6 ter 38 of title 31, including— 

7 ‘‘(A) the number of reports submitted by 

8 investigating officials to reviewing officials 

9 under section 3803(a)(1) of such title; 

10 ‘‘(B) actions taken in response to reports 

11 described in subparagraph (A), which shall in12 clude statistical tables showing— 

13 ‘‘(i) pending cases; 

14 ‘‘(ii) resolved cases; 

15 ‘‘(iii) the average length of time to re16 solve each case; 

17 ‘‘(iv) the number of final agency deci18 sions that were appealed to a district court 

19 of the United States or a higher court; and 

20 ‘‘(v) if the total number of cases in a 

21 report is greater than 2— 

22 ‘‘(I) the number of cases that 

23 were settled; and 

24 ‘‘(II) the total penalty or assess25 ment amount recovered in each case, 


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1 including through a settlement or 

2 compromise; and 

3 ‘‘(C) instances in which the reviewing offi4 cial declined to proceed on a case reported by 

5 an investigating official; and’’. 

6 (f) INCREASING EFFICIENCY OF DOJ PROC7 ESSING.—Section 3803(j) of title 31, United States Code, 

8 is amended— 

9 (1) by inserting ‘‘(1)’’ before ‘‘The reviewing’’; 

10 and 

11 (2) by adding at the end the following: 

12 ‘‘(2) A reviewing official shall notify the Attorney 

13 General in writing not later than 30 days before entering 

14 into any agreement to compromise or settle allegations of 

15 liability under section 3802 and before the date on which 

16 the reviewing official is permitted to refer allegations of 

17 liability to a presiding officer under subsection (b).’’. 

18 (g) REVISION OF DEFINITION OF HEARING OFFI19 CIALS.— 

20 (1) IN GENERAL.—Chapter 38 of title 31, 

21 United States Code, is amended— 

22 (A) in section 3801(a)(7)— 

23 (i) in subparagraph (A), by striking 

24 ‘‘or’’ at the end; 


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1 (ii) in subparagraph (B)(vii), by add2 ing ‘‘or’’ at the end; and 

3 (iii) by adding at the end the fol4 lowing: 

5 ‘‘(C) a member of the board of contract 

6 appeals pursuant to section 7105 of title 41, if 

7 the authority does not employ an available pre8 siding officer under subparagraph (A);’’; and 

9 (B) in section 3803(d)(2)— 

10 (i) in subparagraph (A), by striking 

11 ‘‘and’’ at the end; 

12 (ii) in subparagraph (B)— 

13 (I) by striking ‘‘the presiding’’ 

14 and inserting ‘‘(i) in the case of a re15 ferral to a presiding officer described 

16 in subparagraph (A) or (B) of section 

17 3801(a)(7), the presiding’’; 

18 (II) in clause (i), as so des19 ignated, by striking the period at the 

20 end and inserting ‘‘; or’’; and 

21 (III) by adding at the end the 

22 following: 

23 ‘‘(ii) in the case of a referral to a presiding 

24 officer described in subparagraph (C) of section 

25 3801(a)(7)— 


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1 ‘‘(I) the reviewing official shall submit 

2 a copy of the notice required by under 

3 paragraph (1) and of the response of the 

4 person receiving such notice requesting a 

5 hearing— 

6 ‘‘(aa) to the board of contract 

7 appeals that has jurisdiction over 

8 matters arising from the agency of the 

9 reviewing official pursuant to section 

10 7105(e)(1) of title 41; or 

11 ‘‘(bb) if the Chair of the board of 

12 contract appeals declines to accept the 

13 referral, to any other board of con14 tract appeals; and 

15 ‘‘(II) the reviewing official shall simul16 taneously mail, by registered or certified 

17 mail, or shall deliver, notice to the person 

18 alleged to be liable under section 3802 that 

19 the referral has been made to an agency 

20 board of contract appeals with an expla21 nation as to where the person may obtain 

22 the relevant rules of procedure promul23 gated by the board; and’’; and 

24 (iii) by adding at the end the fol25 lowing: 


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1 ‘‘(C) in the case of a hearing conducted by a 

2 presiding officer described in subparagraph (C) of 

3 section 3801(a)(7)— 

4 ‘‘(i) the presiding officer shall conduct the 

5 hearing according to the rules and procedures 

6 promulgated by the board of contract appeals; 

7 and 

8 ‘‘(ii) the hearing shall not be subject to the 

9 provisions in subsection (g)(2), (h), or (i).’’. 

10 (2) AGENCY BOARDS.—Section 7105(e) of title 

11 41, United States Code, is amended— 

12 (A) in paragraph (1), by adding at the end 

13 the following: 

14 ‘‘(E) ADMINISTRATIVE FALSE CLAIMS

15 ACT.— 

16 ‘‘(i) IN GENERAL.—The boards de17 scribed in subparagraphs (B), (C), and (D) 

18 shall have jurisdiction to hear any case re19 ferred to a board of contract appeals under 

20 section 3803(d) of title 31. 

21 ‘‘(ii) DECLINING REFERRAL.—If the 

22 Chair of a board described in subpara23 graph (B), (C), or (D) determines that ac24 cepting a case under clause (i) would pre25 vent adequate consideration of other cases 


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1 being handled by the board, the Chair may 

2 decline to accept the referral.’’; and 

3 (B) in paragraph (2), by inserting ‘‘or, in 

4 the event that a case is filed under chapter 38 

5 of title 31, any relief that would be available to 

6 a litigant under that chapter’’ before the period 

7 at the end. 

8 (3) REGULATIONS.—Not later than 180 days 

9 after the date of enactment of this Act, each author10 ity head, as defined in section 3801 of title 31, 

11 United States Code, and each board of contract ap12 peals of a board described in subparagraph (B), (C), 

13 or (D) of section 7105(e) of title 41, United States 

14 Code, shall amend procedures regarding proceedings 

15 as necessary to implement the amendments made by 

16 this subsection. 

17 (h) REVISION OF LIMITATIONS.—Section 3808 of 

18 title 31, United States Code, is amended by striking sub19 section (a) and inserting the following: 

20 ‘‘(a) A notice to the person alleged to be liable with 

21 respect to a claim or statement shall be mailed or delivered 

22 in accordance with section 3803(d)(1) not later than the 

23 later of— 

24 ‘‘(1) 6 years after the date on which the viola25 tion of section 3802 is committed; or 


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1 ‘‘(2) 3 years after the date on which facts mate2 rial to the action are known or reasonably should 

3 have been known by the authority head, but in no 

4 event more than 10 years after the date on which 

5 the violation is committed.’’. 

6 (i) DEFINITIONS.—Section 3801 of title 31, United 

7 States Code, is amended— 

8 (1) in subsection (a)— 

9 (A) in paragraph (8), by striking ‘‘and’’ at 

10 the end; 

11 (B) in paragraph (9), by striking the pe12 riod at the end and inserting a semicolon; and 

13 (C) by adding at the end the following: 

14 ‘‘(10) ‘material’ has the meaning given the term 

15 in section 3729(b) of this title; and 

16 ‘‘(11) ‘obligation’ has the meaning given the 

17 term in section 3729(b) of this title.’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(d) For purposes of subsection (a)(10), materiality 

20 shall be determined in the same manner as under section 

21 3729 of this title.’’. 

22 (j) PROMULGATION OF REGULATIONS.—Not later 

23 than 180 days after the date of enactment of this Act, 

24 each authority head, as defined in section 3801 of title 

25 31, United States Code, shall— 


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1 (1) promulgate regulations and procedures to 

2 carry out this Act and the amendments made by this 

3 Act; and 

4 (2) review and update existing regulations and 

5 procedures of the authority to ensure compliance 

6 with this Act and the amendments made by this Act. 

Æ 


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