II 

Calendar No. 166 

117TH CONGRESS 

1ST SESSION S. 2428 

To amend title 31, United States Code, to modify False Claims Act 

procedures, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2021 

Mr. GRASSLEY (for himself, Mr. LEAHY, Mr. KENNEDY, Mr. DURBIN, and 

Mr. WICKER) introduced the following bill; which was read twice and referred to the Committee on the Judiciary 

NOVEMBER 16, 2021 

Reported by Mr. DURBIN, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend title 31, United States Code, to modify False 

Claims Act procedures, 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 ‘‘False Claims Amend5 ments Act of 2021’’. 


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1 SEC. 2. FALSE CLAIMS PROCEDURE. 

2 (a) PROVING MATERIALITY.—Section 3729 of title 

3 31, United States Code, is amended by adding at the end 

4 the following: 

5 ‘‘(e) PROVING MATERIALITY.— 

6 ‘‘(1) IN GENERAL.—In an action under this sec7 tion, the Government or relator may establish mate8 riality by a preponderance of the evidence. 

9 ‘‘(2) REBUTTAL.—A defendant may rebut an 

10 argument of materiality under paragraph (1) by 

11 clear and convincing evidence.’’. 

12 (b) COSTS.—Section 3731 of title 31, United States 

13 Code, is amended by adding at the end the following: 

14 ‘‘(f) If the Government elects not to intervene in an 

15 action brought under section 3730(b), the court shall, 

16 upon a motion by the Government, order the requesting 

17 party to pay the Government’s expenses, including costs 

18 and attorneys’ fees, for responding to the party’s discovery 

19 requests, unless the party can demonstrate that the infor20 mation sought is relevant, proportionate to the needs of 

21 the case, and not unduly burdensome on the Govern22 ment.’’. 

23 SEC. 3. RIGHTS OF THE PARTIES TO QUI TAM ACTIONS. 

24 Section 3730(c)(2)(A) of title 31, United States 

25 Code, is amended by inserting before the period at the 

26 end the following: ‘‘, at which the Government shall have 


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1 the burden of demonstrating reasons for dismissal, and 

2 the qui tam plaintiff shall have the opportunity to show 

3 that the reasons are fraudulent, arbitrary and capricious, 

4 or contrary to law’’. 

5 SEC. 4. POST-EMPLOYMENT WHISTLEBLOWER RETALIA6 TION. 

7 Section 3730(h)(1) of title 31, United States Code, 

8 is amended by inserting ‘‘current or former’’ after ‘‘Any’’. 

9 SEC. 5. GAO REPORT. 

10 Not later than 18 months after the date of enactment 

11 of this Act, the Comptroller General of the United States 

12 shall submit a report to Congress on the effectiveness of 

13 the False Claims Act (31 U.S.C. 3729 et seq.) during the 

14 time period beginning on the date of enactment of the 

15 False Claims Amendments Act of 1986 (Public Law 99– 

16 562; 100 Stat. 3153) and ending on the date of enactment 

17 of this Act, which shall include— 

18 (1) a description of the benefits and challenges 

19 of enforcement efforts under the False Claims Act 

20 (31 U.S.C. 3729 et seq.); and 

21 (2) information on the amounts recovered by 

22 the Government under the False Claims Act since 

23 the date of enactment of the False Claims Amend24 ments Act of 1986 (Public Law 99–562; 100 Stat. 

25 3153). 


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1 SEC. 6. APPLICABILITY. 

2 The amendments made by sections 2, 3, and 4 of this 

3 Act shall apply to any case under the False Claims Act 

4 (31 U.S.C. 3729 et seq.) that is— 

5 (1) filed on or after the date of enactment of 

6 this Act; or 

7 (2) pending on the date of enactment of this 

8 Act. 

9 SECTION 1. SHORT TITLE. 

10 This Act may be cited as the ‘‘False Claims Amend11 ments Act of 2021’’. 

12 SEC. 2. FALSE CLAIMS PROCEDURE. 

13 Section 3729 of title 31, United States Code, is amend14 ed by adding at the end the following: 

15 ‘‘(e) PROVING MATERIALITY.—In determining materi16 ality, the decision of the Government to forego a refund or 

17 to pay a claim despite actual knowledge of fraud or falsity 

18 shall not be considered dispositive if other reasons exist for 

19 the decision of the Government with respect to such refund 

20 or payment.’’. 

21 SEC. 3. RIGHTS OF THE PARTIES TO QUI TAM ACTIONS. 

22 Section 3730(c)(2)(A) of title 31, United States Code, 

23 is amended by inserting before the period at the end the 

24 following: ‘‘, at which the Government shall identify a valid 

25 government purpose and a rational relation between dis26 missal and accomplishment of the purpose, and the person 


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1 initiating the action shall have the burden of demonstrating 

2 that the dismissal is fraudulent, arbitrary and capricious, 

3 or illegal’’. 

4 SEC. 4. POST-EMPLOYMENT WHISTLEBLOWER RETALIA5 TION. 

6 Section 3730(h)(1) of title 31, United States Code, is 

7 amended by inserting ‘‘current or former’’ after ‘‘Any’’. 

8 SEC. 5. GAO REPORT. 

9 Not later than 18 months after the date of enactment 

10 of this Act, the Comptroller General of the United States 

11 shall submit a report to Congress on the effectiveness of sec12 tions 3729 through 3733 of title 31, United States Code, 

13 (referred to in this Act as the ‘‘False Claims Act’’) during 

14 the time period beginning on the date of enactment of the 

15 False Claims Amendments Act of 1986 (Public Law 99– 

16 562; 100 Stat. 3153) and ending on the date of enactment 

17 of this Act, which shall include— 

18 (1) a description of the benefits and challenges of 

19 enforcement efforts under the False Claims Act; and 

20 (2) information on the amounts recovered by the 

21 Government under the False Claims Act since the 

22 date of enactment of the False Claims Amendments 

23 Act of 1986 (Public Law 99–562; 100 Stat. 3153). 


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1 SEC. 6. APPLICABILITY. 

2 The amendments made by sections 2, 3, and 4 of this 

3 Act shall apply to any case under the False Claims Act 

4 that is filed on or after the date of enactment of this Act. 


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pamtmann on DSKBC07HB2PROD with BILLS
Calendar No. 166 

117TH CONGRESS 

1ST SESSION S. 2428 

A BILL 

To amend title 31, United States Code, to modify 

poses. False Claims Act procedures, and for other purNOVEMBER 16, 2021 

Reported with an amendment 


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