II 

117TH CONGRESS 

1ST SESSION S. 2429 

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 

JULY 22, 2021 

Mr. GRASSLEY (for himself, Mr. DURBIN, and Ms. HASSAN) 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 2021’’. 

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 max18 imum amount in paragraph (1) shall be adjusted for 

19 inflation in the same manner and to the same extent 

20 as civil monetary penalties under the Federal Civil 

21 Penalties Inflation Adjustment Act (28 U.S.C. 2461 

22 note).’’. 

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

24 title 31, United States Code, is amended to read as fol25 lows: 


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

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

3 shall be credited first to reimburse the authority or 

4 other Federal entity that expended costs in support 

5 of the investigation or prosecution of the action, in6 cluding any court or hearing costs; and 

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

8 shall— 

9 ‘‘(I) be deposited in— 

10 ‘‘(aa) the appropriations account of 

11 the authority or other Federal entity from 

12 which the costs described in subparagraph 

13 (A) were obligated; 

14 ‘‘(bb) a similar appropriations account 

15 of the authority or other Federal entity; or 

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

17 entity expended nonappropriated funds, 

18 another appropriate account; and 

19 ‘‘(II) remain available until expended. 

20 ‘‘(B) Any amount remaining after reimbursements 

21 described in subparagraph (A) shall be deposited as mis22 cellaneous receipts in the Treasury of the United States.’’. 

23 (e) SEMIANNUAL REPORTING.—Section 5(b) of the 

24 Inspector General Act of 1978 (5 U.S.C. App.) is amend25 ed— 


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

2 end; 

3 (2) by redesignating paragraph (5) as para4 graph (6); and 

5 (3) by inserting after paragraph (4) the fol6 lowing: 

7 ‘‘(5) information relating to cases under chap8 ter 38 of title 31, United States, including— 

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

10 investigating officials to reviewing officials 

11 under section 3803(a)(1) of title 31, United 

12 States Code; 

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

14 described in subparagraph (A), which shall in15 clude statistical tables showing— 

16 ‘‘(i) pending cases; 

17 ‘‘(ii) resolved cases; 

18 ‘‘(iii) the average length of time to re19 solve each case; 

20 ‘‘(iv) the number of final agency deci21 sions that were appealed to a district court 

22 of the United States or a higher court; and 

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

24 report is greater than 2— 


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1 ‘‘(I) the number of cases that 

2 were settled; and 

3 ‘‘(II) the total penalty or assess4 ment amount recovered in each case, 

5 including through a settlement or 

6 compromise; and 

7 ‘‘(C) instances in which the reviewing offi8 cial declined to proceed on a case reported by 

9 an investigating official; and’’. 

10 (f) INCREASING EFFICIENCY OF DOJ PROC11 ESSING.—Title 31, United States Code, is amended— 

12 (1) in section 3803(j)— 

13 (A) by inserting ‘‘(1)’’ before ‘‘The review14 ing’’; and 

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

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

17 General in writing not later than 30 days before entering 

18 into any agreement to compromise or settle allegations of 

19 liability under section 3802 of this title and before the 

20 date on which the reviewing official is permitted to refer 

21 allegations of liability to a presiding officer under sub22 section (b).’’; and 

23 (2) in section 3812— 


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1 (A) in the section heading, by striking 

2 ‘‘Prohibition against delegation’’ and 

3 inserting ‘‘Delegation authority’’; and 

4 (B) by striking ‘‘, shall not be delegated to, 

5 or carried out by,’’ and inserting ‘‘may be dele6 gated to’’. 

7 (g) REVISION OF DEFINITION OF HEARING OFFI8 CIALS.— 

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

10 United States Code, is amended— 

11 (A) in section 3801(a)(7)— 

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

13 ‘‘or’’ at the end; 

14 (ii) in subparagraph (B)(vii), by add15 ing ‘‘or’’ at the end; and 

16 (iii) by adding at the end the fol17 lowing: 

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

19 appeals pursuant to section 7105 of title 41, if 

20 the authority does not employ an available pre21 siding officer under subparagraph (A);’’; and 

22 (B) in section 3803(d)(2)— 

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

24 ‘‘and’’ at the end; 

25 (ii) in subparagraph (B)— 


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1 (I) by striking ‘‘the presiding’’ 

2 and inserting ‘‘(i) in the case of a re3 ferral to a presiding officer described 

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

5 3801(a)(7), the presiding’’; 

6 (II) in clause (i), as so des7 ignated, by adding ‘‘or’’ at the end; 

8 and 

9 (III) by adding at the end the 

10 following: 

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

12 officer described in subparagraph (C) of section 

13 3801(a)(7)— 

14 ‘‘(I) the reviewing official shall submit 

15 a copy of the notice required by under 

16 paragraph (1) and of the response of the 

17 person receiving such notice requesting a 

18 hearing— 

19 ‘‘(aa) to the board of contract 

20 appeals that has jurisdiction over 

21 matters arising from the agency of the 

22 reviewing official pursuant to section 

23 7105(e)(1) of title 41; or 

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

25 contract appeals declines to accept the 


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1 referral, to any other board of con2 tract appeals; and 

3 ‘‘(II) the reviewing official shall simul4 taneously mail, by registered or certified 

5 mail, or shall deliver, notice to the person 

6 alleged to be liable under section 3802 that 

7 the referral has been made to an agency 

8 board of contract appeals with an expla9 nation as to where the person may obtain 

10 the relevant rules of procedure promul11 gated by the board.’’; and 

12 (iii) by adding at the end the fol13 lowing: 

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

15 a presiding officer described in subparagraph 

16 (C) of section 3801(a)(7)— 

17 ‘‘(i) the presiding officer shall conduct 

18 the hearing according to the rules and pro19 cedures promulgated by the board of con20 tract appeals; and 

21 ‘‘(ii) the hearing shall not be subject 

22 to the provisions in subsection (g)(2), (h), 

23 or (i).’’. 

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

25 41, United States Code, is amended— 


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

2 the following: 

3 ‘‘(E) ADMINISTRATIVE FALSE CLAIMS

4 ACT.— 

5 ‘‘(i) IN GENERAL.—The boards de6 scribed in subparagraphs (B), (C), and (D) 

7 shall have jurisdiction to hear any case re8 ferred to a board of contract appeals under 

9 section 3803(d) of title 31. 

10 ‘‘(ii) DECLINING REFERRAL.—If the 

11 Chair of a board described in subpara12 graph (B), (C), or (D) determines that ac13 cepting a case under clause (i) would pre14 vent adequate consideration of other cases 

15 being handled by the board, the Chair may 

16 decline to accept the referral.’’; and 

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

18 the event that a case is filed under chapter 38 

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

20 a litigant under that chapter’’ before the period 

21 at the end. 

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

23 after the date of enactment of this Act, each author24 ity head, as defined in section 3801 of title 31, 

25 United States Code, and each board of contract apVerDate Sep 11 2014 23:51 Jul 23, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2429.IS S2429

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1 peals of a board described in subparagraphs (B), 

2 (C), and (D) of section 7105(e) of title 41, United 

3 States Code, shall amend procedures regarding pro4 ceedings as necessary to implement the amendments 

5 made by this subsection. 

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

7 title 31, United States Code, is amended by striking sub8 section (a) and inserting the following: 

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

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

11 in accordance with section 3803(d)(1) of this title not later 

12 than the later of— 

13 ‘‘(1) 6 years after the date on which the viola14 tion of section 3802 of this title is committed; or 

15 ‘‘(2) 3 years after the date on which facts mate16 rial to the action are known or reasonably should 

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

18 event more than 10 years after the date on which 

19 the violation is committed.’’. 

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

21 States Code, is amended— 

22 (1) in subsection (a)— 

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

24 the end; 


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1 (B) in paragraph (9), by striking the pe2 riod at the end and inserting a semicolon; and 

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

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

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

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

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

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

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

10 shall be determined in the same manner as under section 

11 3729 of this title.’’. 

12 (j) PROMULGATION OF REGULATIONS.—Not later 

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

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

15 31, United States Code, shall— 

16 (1) promulgate regulations and procedures to 

17 carry out this Act and the amendments made by this 

18 Act; and 

19 (2) review and update existing regulations and 

20 procedures of the authority to ensure compliance 

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

Æ 


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