II 

Calendar No. 162 

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, Ms. HASSAN, Mr. LANKFORD, Mr. 

PORTMAN, Mr. BLUMENTHAL, Mr. LEAHY, and Mr. KENNEDY) introduced the following bill; which was read twice and referred to the Committee on the Judiciary 

NOVEMBER 1, 2021 

Reported by Mr. DURBIN, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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’’. 


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1 SEC. 2. ADMINISTRATIVE FALSE CLAIMS. 

2 (a) CHANGE IN SHORT TITLE.— 

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

4 Omnibus Budget Reconciliation Act of 1986 (Public 

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

6 (A) in the subtitle heading, by striking 

7 ‘‘Program Fraud Civil Remedies’’ and 

8 inserting ‘‘Administrative False 

9 Claims’’; and 

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

11 by striking ‘‘Program Fraud Civil Remedies Act 

12 of 1986’’ and inserting ‘‘Administrative False 

13 Claims Act’’. 

14 (2) REFERENCES.—Any reference to the Pro15 gram Fraud Civil Remedies Act of 1986 in any pro16 vision of law, regulation, map, document, record, or 

17 other paper of the United States shall be deemed a 

18 reference to the Administrative False Claims Act. 

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

20 31, United States Code, is amended— 

21 (1) in section 3801(a)(3), by amending sub22 paragraph (C) to read as follows: 

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

24 effect of concealing or improperly avoiding or 

25 decreasing an obligation to pay or transmit 


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1 property, services, or money to the authority,.’’; 

2 and 

3 (2) in section 3802(a)(3)— 

4 (A) by striking ‘‘An assessment’’ and in5 serting ‘‘(A) Except as provided in subpara6 graph (B), an assessment’’; and 

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

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

9 3801(a)(3)(C), an assessment shall not be made 

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

11 amount that is more than double the value of the 

12 property, services, or money that was wrongfully 

13 withheld from the authority.’’. 

14 (c) INCREASING DOLLAR AMOUNT OF CLAIMS.—Sec15 tion 3803(c) of title 31, United States Code, is amended— 

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

17 each place that term appears and inserting 

18 ‘‘$1,000,000’’; and 

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

20 ‘‘(3) ADJUSTMENT FOR INFLATION.—The max21 imum amount in paragraph (1) shall be adjusted for 

22 inflation in the same manner and to the same extent 

23 as civil monetary penalties under the Federal Civil 

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

25 note). 


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

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

3 the same manner and to the same extent as civil monetary 

4 penalties under the Federal Civil Penalties Inflation Ad5 justment Act (28 U.S.C. 2461 note).’’. 

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

7 title 31, United States Code, is amended to read as fol8 lows: 

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

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

11 shall be credited first to reimburse the authority or 

12 other Federal entity that expended costs in support 

13 of the investigation or prosecution of the action, in14 cluding any court or hearing costs; and 

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

16 shall— 

17 ‘‘(I) be deposited in— 

18 ‘‘(aa) the appropriations account of 

19 the authority or other Federal entity from 

20 which the costs described in subparagraph 

21 (A) were obligated; 

22 ‘‘(bb) a similar appropriations account 

23 of the authority or other Federal entity; or 


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

2 entity expended nonappropriated funds, 

3 another appropriate account; and 

4 ‘‘(II) remain available until expended. 

5 ‘‘(B) Any amount remaining after reimbursements 

6 described in subparagraph (A) shall be deposited as mis7 cellaneous receipts in the Treasury of the United States.’’. 

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

9 Inspector General Act of 1978 (5 U.S.C. App.) is amend10 ed— 

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

12 end; 

13 (2) by redesignating paragraph (5) as para14 graph (6); and 

15 (3) by inserting after paragraph (4) the fol16 lowing: 

17 ‘‘(5) information relating to cases under chap18 ter 38 of title 31, United States, including— 

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

20 investigating officials to reviewing officials 

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

22 States Code; 

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

24 described in subparagraph (A), which shall in25 clude statistical tables showing— 


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1 ‘‘(i) pending cases; 

2 ‘‘(ii) resolved cases; 

3 ‘‘(iii) the average length of time to re4 solve each case; 

5 ‘‘(iv) the number of final agency deci6 sions that were appealed to a district court 

7 of the United States or a higher court; and 

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

9 report is greater than 2— 

10 ‘‘(I) the number of cases that 

11 were settled; and 

12 ‘‘(II) the total penalty or assess13 ment amount recovered in each case, 

14 including through a settlement or 

15 compromise; and 

16 ‘‘(C) instances in which the reviewing offi17 cial declined to proceed on a case reported by 

18 an investigating official; and’’. 

19 (f) INCREASING EFFICIENCY OF DOJ PROC20 ESSING.—Title 31, United States Code, is amended— 

21 (1) in section 3803(j)— 

22 (A) by inserting ‘‘(1)’’ before ‘‘The review23 ing’’; and 

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


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

2 General in writing not later than 30 days before entering 

3 into any agreement to compromise or settle allegations of 

4 liability under section 3802 of this title and before the 

5 date on which the reviewing official is permitted to refer 

6 allegations of liability to a presiding officer under sub7 section (b).’’; and 

8 (2) in the table of sections for chapter 38, by 

9 striking the item relating to section 3812 and insert10 ing the following: 

‘‘3812. Delegation authority.’’; and 

11 (2)(3) in section 3812— 

12 (A) in the section heading, by striking 

13 ‘‘Prohibition against delegation’’ and 

14 inserting ‘‘Delegation authority’’; and 

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

16 or carried out by,’’ and inserting ‘‘may be dele17 gated to’’. 

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’’ adding ‘‘or’’ 

21 at the end; and 

22 (III) by adding at the end the 

23 following: 


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

2 officer described in subparagraph (C) of section 

3 3801(a)(7)— 

4 ‘‘(I) the reviewing official shall submit 

5 a copy of the notice required by under 

6 paragraph (1) and of the response of the 

7 person receiving such notice requesting a 

8 hearing— 

9 ‘‘(aa) to the board of contract 

10 appeals that has jurisdiction over 

11 matters arising from the agency of the 

12 reviewing official pursuant to section 

13 7105(e)(1) of title 41; or 

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

15 contract appeals declines to accept the 

16 referral, to any other board of con17 tract appeals; and 

18 ‘‘(II) the reviewing official shall simul19 taneously mail, by registered or certified 

20 mail, or shall deliver, notice to the person 

21 alleged to be liable under section 3802 that 

22 the referral has been made to an agency 

23 board of contract appeals with an expla24 nation as to where the person may obtain 


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1 the relevant rules of procedure promul2 gated by the board.; and’’; and 

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

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

6 a presiding officer described in subparagraph 

7 (C) of section 3801(a)(7)— 

8 ‘‘(i) the presiding officer shall conduct 

9 the hearing according to the rules and pro10 cedures promulgated by the board of con11 tract appeals; and 

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

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

14 or (i).’’. 

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

16 41, United States Code, is amended— 

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

18 the following: 

19 ‘‘(E) ADMINISTRATIVE FALSE CLAIMS

20 ACT.— 

21 ‘‘(i) IN GENERAL.—The boards de22 scribed in subparagraphs (B), (C), and (D) 

23 shall have jurisdiction to hear any case re24 ferred to a board of contract appeals under 

25 section 3803(d) of title 31. 


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1 ‘‘(ii) DECLINING REFERRAL.—If the 

2 Chair of a board described in subpara3 graph (B), (C), or (D) determines that ac4 cepting a case under clause (i) would pre5 vent adequate consideration of other cases 

6 being handled by the board, the Chair may 

7 decline to accept the referral.’’; and 

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

9 the event that a case is filed under chapter 38 

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

11 a litigant under that chapter’’ before the period 

12 at the end. 

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

14 after the date of enactment of this Act, each author15 ity head, as defined in section 3801 of title 31, 

16 United States Code, and each board of contract ap17 peals of a board described in subparagraphs (B), 

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

19 States Code, shall amend procedures regarding pro20 ceedings as necessary to implement the amendments 

21 made by this subsection. 

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

23 title 31, United States Code, is amended by striking sub24 section (a) and inserting the following: 


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

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

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

4 than the later of— 

5 ‘‘(1) 6 years after the date on which the viola6 tion of section 3802 of this title is committed; or 

7 ‘‘(2) 3 years after the date on which facts mate8 rial to the action are known or reasonably should 

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

10 event more than 10 years after the date on which 

11 the violation is committed.’’. 

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

13 States Code, is amended— 

14 (1) in subsection (a)— 

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

16 the end; 

17 (B) in paragraph (9), by striking the pe18 riod at the end and inserting a semicolon; and 

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

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

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

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

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

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


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

2 shall be determined in the same manner as under section 

3 3729 of this title.’’. 

4 (j) PROMULGATION OF REGULATIONS.—Not later 

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

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

7 31, United States Code, shall— 

8 (1) promulgate regulations and procedures to 

9 carry out this Act and the amendments made by this 

10 Act; and 

11 (2) review and update existing regulations and 

12 procedures of the authority to ensure compliance 

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


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Calendar No. 162 

117TH CONGRESS 

1ST SESSION S. 2429 

A BILL 

To amend chapter 38 of title 31, United States 

purposes. Code, relating to civil remedies, and for other 

NOVEMBER 1, 2021 

Reported with amendments 


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