I 
110TH CONGRESS 
1ST SESSION H. R. 4854 
To amend the provisions of title 31, United States Code, relating to false 
claims to clarify and make technical amendments to those provisions, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2007 
Mr. BERMAN (for himself and Mr. SENSENBRENNER) introduced the following 
bill; which was referred to the Committee on the Judiciary 
A BILL 
To amend the provisions of title 31, United States Code, 
relating to false claims to clarify and make technical 
amendments to those provisions, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘False Claims Act Cor-
rection Act of 2007’’. 
SEC. 2. LIABILITY FOR FALSE CLAIMS. 
Section 3729 of title 31, United States Code, is 
amended to read as follows: 
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‘‘§ 3729. False claims 
‘‘(a) LIABILITY FOR CERTAIN ACTS.— 
‘‘(1) IN GENERAL.—Any person who— 
‘‘(A) knowingly presents, or causes to be 
presented for payment or approval a false or 
fraudulent claim for Government money or 
property, 
‘‘(B) knowingly makes, uses, or causes to 
be made or used, a false record or statement to 
get a false or fraudulent claim for Government 
money or property paid or approved, 
‘‘(C) has possession, custody, or control of 
Government money or property and, intending 
to— 
‘‘(i) defraud the Government, 
‘‘(ii) retain a known overpayment, or 
‘‘(iii) knowingly convert the money or 
property, permanently or temporarily, to 
an unauthorized use, 
fails to deliver or return, or fails to cause the 
return or delivery of, the money or property, or 
delivers, returns, or causes to be delivered or 
returned less money or property than the 
amount due or owed, 
‘‘(D) authorized to make or deliver a docu-
ment certifying receipt of property used, or to 
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be used, by the Government and, intending to 
defraud the Government, makes or delivers the 
receipt without completely knowing that the in-
formation on the receipt is true, 
‘‘(E) knowingly buys, or receives as a 
pledge of an obligation or debt, public property 
from an officer or employee of the Government, 
or a member of the Armed Forces, who lawfully 
may not sell or pledge the property, 
‘‘(F) knowingly makes, uses, or causes to 
be made or used, a false record or statement to 
conceal, avoid, or decrease an obligation to pay 
or transmit money or property to the Govern-
ment, or 
‘‘(G) conspires to commit any violation set 
forth in any of subparagraphs (A) through (F), 
is liable to the United States Government for a civil 
penalty of not less than $5,000 and not more than 
$10,000, plus 3 times the amount of damages which 
the Government or its administrative beneficiary 
sustains because of the act of that person, subject 
to paragraphs (2) and (3). 
‘‘(2) LESSER PENALTY IF DEFENDANT COOPER-
ATES WITH INVESTIGATION.—In an action brought 
for a violation under paragraph (1), the court may 
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assess not less than 2 times the amount of damages 
which the Government or its administrative bene-
ficiary sustains because of the act of the person 
committing the violation if the court finds that— 
‘‘(A) such person provided to those officials 
of the United States who are responsible for in-
vestigating false claims violations, all informa-
tion known to the person about the violation 
within 30 days after the date on which the per-
son first obtained the information; 
‘‘(B) such person fully cooperated with any 
Government investigation of the violation; and 
‘‘(C) at the time such person provided to 
the United States the information about the 
violation under subparagraph (A), no criminal 
prosecution, civil action, or administrative ac-
tion had commenced with respect to such viola-
tion, and the person did not have actual knowl-
edge of the existence of an investigation into 
such violation. 
‘‘(3) ASSESSMENT
OF
COSTS.—A person vio-
lating paragraph (1) shall, in addition to a penalty 
or damages assessed under paragraph (1) or (2), be 
liable to the United States Government for the costs 
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‘‘(ii) is to be spent or used on the 
Government’s behalf or to advance a Gov-
ernment program; and 
‘‘(C) money or property that the United 
States holds in trust or administers for any ad-
ministrative beneficiary; 
‘‘(3) the term ‘claim’ includes any request or 
demand, whether under a contract or otherwise, for 
Government money or property; and 
‘‘(4) the term ‘administrative beneficiary’ 
means any entity, including any governmental or 
quasi-governmental entity, on whose behalf the 
United States Government, alone or with others, 
serves as custodian or trustee of money or property 
owned by that entity. 
‘‘(c) STATUTORY
CAUSE
OF
ACTION.—Liability 
under this section is a statutory cause of action all ele-
ments of which are set forth in this section. No proof of 
any additional element of common law fraud or other 
cause of action is implied or required for liability to exist 
for a violation of these provisions. 
‘‘(d) EXEMPTION FROM DISCLOSURE.—Any informa-
tion that a person provides pursuant to subparagraphs (A) 
through (C) of subsection (a)(2) shall be exempt from dis-
closure under section 552 of title 5. 
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‘‘(e) EXCLUSION.—This section does not apply to 
claims, records, or statements made under the Internal 
Revenue Code of 1986.’’. 
SEC. 3. CIVIL ACTIONS FOR FALSE CLAIMS. 
(a) ACTIONS BY PRIVATE PERSONS GENERALLY.— 
Section 3730(b) of title 31, United States Code, is amend-
ed— 
(1) in paragraph (1), by striking the last sen-
tence and inserting the following: ‘‘The action may 
be dismissed only with the consent of the court and 
the Attorney General.’’; 
(2) in paragraph (2), by inserting after the sec-
ond sentence the following: ‘‘In the absence of a 
showing of extraordinary need, the written disclosure 
of any material evidence and information, and any 
other attorney work product, that the person bring-
ing the action provides to the Government shall not 
be subject to discovery.’’; 
(3) in paragraph (4), by striking subparagraph 
(B) and inserting the following: 
‘‘(B) notify the court that it declines to take 
over the action, in which case the person bringing 
the action shall have the right to conduct the action, 
and, within 45 days after the Government provides 
such notice, shall either— 
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‘‘(i) move to dismiss the action without 
prejudice, or 
‘‘(ii) notify the court of the person’s inten-
tion to proceed with the action and move the 
court to unseal the complaint, and any amend-
ments thereto, so as to permit service on the 
defendant and litigation of the action in a pub-
lic forum. 
A person who elects to proceed with the action under sub-
paragraph (B)(ii) shall serve the complaint within 120 
days after the person’s complaint is unsealed under such 
subparagraph.’’; and 
(4) by amending paragraph (5) to read as fol-
lows: 
‘‘(5) When a person brings an action under this sub-
section, no person other than the Government may join 
or intervene in the action, except with the consent of the 
person who brought the action. In addition, when a person 
brings an action that is pled in accordance with this sub-
section and section 3731(e), no other person may bring 
a separate action under this subsection based on the facts 
underlying a cause of action in the pending action.’’. 
(b) RIGHTS
OF
THE PARTIES
TO QUI TAM AC-
TIONS.—Section 3730(c)(5) of title 31, United States 
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Code, is amended by striking the second sentence and in-
serting the following: ‘‘An alternate remedy includes— 
‘‘(A) anything of value received by the Govern-
ment from the defendant, whether funds, credits, or 
in-kind goods or services, in exchange for an agree-
ment by the Government either to release claims 
brought in, or to decline to intervene in or inves-
tigate the action initiated under subsection (b); and 
‘‘(B) anything of value received by the Govern-
ment based on the claims alleged by the person initi-
ating the action, if that person subsequently prevails 
on the claims. 
If any such alternate remedy is pursued in another pro-
ceeding, the person initiating the action shall have the 
same rights in such proceeding as such person would have 
had if the action had continued under this section, except 
that the person initiating the action may not obtain an 
award calculated on more than the total amount of dam-
ages, plus any fines or penalties, that could be recovered 
by the United States under section 3729(a).’’. 
(c) AWARD
TO
QUI
TAM
PLAINTIFF.—Section 
3730(d) of title 31, United States Code, is amended— 
(1) in paragraph (1)— 
(A) in the first sentence, by inserting ‘‘an 
award of’’ after ‘‘receive’’; 
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(B) by striking the second and third sen-
tences and inserting the following: ‘‘Any pay-
ment to a person under this paragraph or 
under paragraph (2) or (3) shall be made from 
the proceeds, and shall accrue interest, at the 
underpayment rate under section 6621 of the 
Internal Revenue Code of 1986, beginning 30 
days after the date the proceeds are paid to the 
United States, and continuing until payment is 
made to the person by the United States.’’; and 
(C) in the last sentence, by striking ‘‘nec-
essarily’’; 
(2) in paragraph (2)— 
(A) in the second sentence, by striking 
‘‘and shall be paid out of such proceeds’’; and 
(B) in the third sentence, by striking ‘‘nec-
essarily’’; and 
(3) by amending paragraph (3) to read as fol-
lows: 
‘‘(3)(A) Whether or not the Government proceeds 
with the action, if the court finds that the action was 
brought by a person who either— 
‘‘(i) planned and initiated the violation of sec-
tion 3729 upon which the action was brought, or 
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‘‘(ii) derived his or her knowledge of the action 
primarily from specific information relating to alle-
gations or transactions (other than information pro-
vided by the person bringing the action) that the 
Government publicly disclosed, within the meaning 
of subsection (e)(4)(A), or that it disclosed privately 
to the person bringing the action in the course of its 
investigation into potential violations of section 
3729, 
then the court may, to the extent the court considers ap-
propriate, reduce the share of the proceeds of the action 
that the person would otherwise receive under paragraph 
(1) or (2) of this subsection, taking into account the role 
of that person in advancing the case to litigation and any 
relevant circumstances pertaining to the violation. The 
court shall direct the defendant to pay any such person 
an amount for reasonable expenses that the court finds 
to have been incurred, plus reasonable attorneys’ fees and 
costs. 
‘‘(B) If the person bringing the action is convicted 
of criminal conduct arising from his or her role in the vio-
lation of section 3729, that person shall be dismissed from 
the civil action and shall not receive any share of the pro-
ceeds of the action. Such dismissal shall not prejudice the 
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right of the United States to continue the action, rep-
resented by the Department of Justice.’’. 
(d) CERTAIN ACTIONS BARRED.—Paragraph (4) of 
section 3730(e) of title 31, United States Code, is amend-
ed to read as follows: 
‘‘(4)(A) Upon timely motion of the Attorney General 
of the United States, a court shall dismiss an action or 
claim brought by a person under subsection (b) if the alle-
gations relating to all essential elements of liability of the 
action or claim are based exclusively on the public disclo-
sure of allegations or transactions in a Federal criminal, 
civil, or administrative hearing, in a congressional, Federal 
administrative, or Government Accountability Office re-
port, hearing, audit, or investigation, or from the news 
media. 
‘‘(B) For purposes of this paragraph, a ‘public disclo-
sure’ includes only disclosures that are made on the public 
record or have otherwise been disseminated broadly to the 
general public. An action or claim is ‘based on’ a public 
disclosure only if the person bringing the action derived 
the person’s knowledge of all essential elements of liability 
of the action or claim alleged in the complaint from the 
public disclosure. The person bringing the action does not 
create a public disclosure by obtaining information from 
a request for information made under section 552 of title 
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5 or from exchanges of information with law enforcement 
and other Government employees if such information does 
not otherwise qualify as publicly disclosed under this para-
graph.’’. 
(e) RELIEF FROM RETALIATORY ACTIONS.—Sub-
section (h) of section 3730 of title 31, United States Code, 
is amended to read as follows: 
‘‘(h) RELIEF FROM RETALIATORY ACTION.—Any 
person who is discharged, demoted, suspended, threat-
ened, harassed, or in any other manner discriminated 
against in the terms or conditions of employment, or is 
materially hindered in obtaining new employment or other 
business opportunities, by any other person because of 
lawful acts done by the person discriminated against or 
others associated with that person— 
‘‘(1) in furtherance of an actual or potential ac-
tion under this section, including investigation for, 
initiation of, testimony for, or assistance in an ac-
tion filed or to be filed under this section, or 
‘‘(2) in furtherance of other efforts to stop one 
or more violations of section 3729, 
shall be entitled to all relief necessary to make the person 
whole. Such relief shall include reinstatement with the 
same seniority status such person would have had but for 
the discrimination, 2 times the amount of back pay or 
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business loss, interest on the back pay or business loss, 
and compensation for any special damages sustained as 
a result of the discrimination, including litigation costs 
and reasonable attorneys’ fees. An action under this sub-
section may be brought in the appropriate district court 
of the United States for the relief provided in this sub-
section.’’. 
(f) RELIEF TO ADMINISTRATIVE BENEFICIARIES.— 
Section 3730 of title 31, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(i) DAMAGES COLLECTED FOR FINANCIAL LOSES 
SUFFERED BY ADMINISTRATIVE BENEFICIARIES.—After 
paying any awards due one or more persons who brought 
an action under subsection (b), the Government shall pay 
from the proceeds of the action to any administrative ben-
eficiary, as defined in section 3729(b), all amounts that 
the Government has collected in the action for financial 
losses suffered by such administrative beneficiary. Any re-
maining proceeds collected by the Government shall be 
treated in the same manner as proceeds collected by the 
Government for direct losses the Government suffers from 
violations of section 3729. Nothing in section 3729 or this 
section precludes administrative beneficiaries from pur-
suing any alternate remedies available to them for losses 
or other harm suffered for them that are not pursued or 
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recovered in an action under this section, except that if 
such alternate remedy proceedings are initiated after a 
person has initiated an action under subsection (b), such 
person shall be entitled to have such alternative remedies 
considered in determining any award in the action under 
subsection (b) to the same extent that such person would 
be entitled under subsection (c)(5) with respect to any al-
ternate remedy pursued by the Government.’’. 
SEC. 4. FALSE CLAIMS PROCEDURE. 
(a) STATUTE OF LIMITATIONS; INTERVENTION BY 
THE GOVERNMENT.—Subsection (b) of section 3731 of 
title 31, United States Code, is amended to read as fol-
lows: 
‘‘(b) STATUTE OF LIMITATIONS; INTERVENTION BY 
THE GOVERNMENT.— 
‘‘(1) STATUTE OF LIMITATIONS.—A civil action 
under section 3730 (a), (b), or (h) may not be 
brought more than 10 years after the date on which 
the violation of section 3729 or 3730(h) is com-
mitted. 
‘‘(2) INTERVENTION.—If the Government elects 
to intervene and proceed with the action under sec-
tion 3730, the Government may file its own com-
plaint, or amend the complaint of a person who 
brought the action under section 3730(b), to clarify 
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or add detail to the claims in which it is intervening 
and to add any additional claims with respect to 
which the Government contends it is entitled to re-
lief. For purposes of paragraph (1), any such Gov-
ernment pleading shall relate back to the filing date 
of the complaint of the person who originally 
brought the action to the extent that the Govern-
ment’s claim arises out of the conduct, transactions, 
or occurrences set forth, or attempted to be set 
forth, in the person’s prior complaint.’’. 
(b) STANDARD OF PROOF.—Section 3731(c) of title 
31, United States Code, is amended— 
(1) by striking ‘‘(c) In’’ and inserting ‘‘(c) 
STANDARD OF PROOF.—In’’; and 
(2) by striking ‘‘United States’’ and inserting 
‘‘plaintiff’’. 
(c) NOTICE OF CLAIMS; VOID CONTRACTS, AGREE-
MENTS, AND CONDITIONS
OF EMPLOYMENT.—Section 
3731 of title 31, United States Code, is amended by add-
ing at the end the following new subsections: 
‘‘(e) NOTICE
OF CLAIMS.—In pleading an action 
brought under section 3730(b), a person shall not be re-
quired to identify specific claims that result from an al-
leged course of misconduct if the facts alleged in the com-
plaint, if ultimately proven true, would provide a reason-
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