able indication that one or more violations of section 3729 
are likely to have occurred, and if the allegations in the 
pleading provide adequate notice of the specific nature of 
the alleged misconduct to permit the Government effec-
tively to investigate and defendants fairly to defend the 
allegations made. 
‘‘(f) VOID CONTRACT, AGREEMENTS, AND CONDI-
TIONS OF EMPLOYMENT.— 
‘‘(1) IN
GENERAL.—Any contract, private 
agreement, or private term or condition of employ-
ment that has the purpose or effect of limiting or 
circumventing the rights of a person to take other-
wise lawful steps to initiate, prosecute, or support an 
action under section 3730, or to limit or circumvent 
the rights or remedies provided to persons bringing 
actions under section 3730(b) and other cooperating 
persons under section 3729 shall be void to the full 
extent of such purpose or effect. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not pre-
clude a contract or private agreement that is entered 
into— 
‘‘(A) with the United States and a person 
bringing an action under section 3730(b) who 
would be affected by such contract or agree-
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ment specifically to settle claims of the United 
States and the person under section 3730; or 
‘‘(B) specifically to settle any discrimina-
tion claim under section 3730(h) of a person af-
fected by such contract or agreement.’’. 
(d) CONFORMING AMENDMENTS.—Section 3731 of 
title 31, United States Code, is amended— 
(1) in subsection (a), by striking ‘‘(a) A sub-
pena’’ and inserting ‘‘(a) SERVICE
OF
SUB-
POENAS.—A subpoena’’; and 
(2) in subsection (d), by striking ‘‘(d) Notwith-
standing’’ and inserting ‘‘(d) ESTOPPEL.—Notwith-
standing’’. 
SEC. 5. FALSE CLAIMS JURISDICTION. 
Section 3732 of title 31, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(c) SERVICE ON STATE OR LOCAL AUTHORITIES.— 
With respect to any State or local government that is 
named as a co-plaintiff with the United States in an action 
brought under subsection (b), a seal on the action ordered 
by the court under section 3730(b) shall not preclude the 
Government or the person bringing the action from serv-
ing the complaint, any other pleadings, or the written dis-
closure of substantially all material evidence and informa-
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tion possessed by the person bringing the action on the 
law enforcement authorities that are authorized under the 
law of that State or local government to investigate and 
prosecute such actions on behalf of such governments.’’. 
SEC. 6. CIVIL INVESTIGATIVE DEMANDS. 
(a) 
CIVIL
INVESTIGATIVE
DEMANDS.—Section 
3733(a)(1) of title 31, United State Code, is amended— 
(1) in the matter preceding subparagraph (A), 
by inserting ‘‘, or a designee (for the purposes of 
this section),’’ after ‘‘Whenever the Attorney Gen-
eral’’; and 
(2) in the matter following subparagraph (D), 
by— 
(A) striking ‘‘may not delegate’’ and in-
serting ‘‘may delegate’’; and 
(B) adding at the end the following: ‘‘Any 
information obtained by the Attorney General 
or a designee of the Attorney General under 
this section may be shared with any a person 
bringing an action under section 3730(b) if the 
Attorney General or the designee determines 
that it is necessary as part of any false claims 
law investigation.’’. 
(b) PROCEDURES.—Section 3733(i)(3) of title 31, 
United States Code, is amended to read as follows: 
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‘‘(3) USE OF MATERIAL, ANSWERS, OR TRAN-
SCRIPTS
IN
FALSE
CLAIMS
ACTIONS
AND
OTHER 
PROCEEDINGS.—Whenever any attorney of the De-
partment of Justice has been designated to handle 
any false claims law investigation or proceeding, or 
any other administrative, civil, or criminal investiga-
tion, case, or proceeding, the custodian of any docu-
mentary material, answers to interrogatories, or 
transcripts of oral testimony received under this sec-
tion may deliver to such attorney such material, an-
swers, or transcripts for official use in connection 
with any such investigation, case, or proceeding as 
such attorney determines to be required. Upon the 
completion of any such investigation, case, or pro-
ceeding, such attorney shall return to the custodian 
any such material, answers, or transcripts so deliv-
ered which have not passed into the control of a 
court, grand jury, or agency through introduction 
into the record of such case or proceeding.’’. 
(c) DEFINITIONS.—Section 3733(l) of title 31, 
United States Code, is amended— 
(1) in paragraph (6), by striking ‘‘and’’ after 
the semicolon; 
(2) in paragraph (7), by striking the period at 
the end and inserting ‘‘; and’’; and 
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(3) by adding at the end the following: 
‘‘(8) the term ‘official use’ means all lawful, 
reasonable uses in furtherance of an investigation, 
case, or proceeding, such as disclosures in connec-
tion with interviews of fact witnesses, settlement dis-
cussions, coordination of an investigation with a 
State Medicaid Fraud Control Unit or other govern-
ment personnel, consultation with experts, and use 
in court pleadings and hearings.’’. 
SEC. 7. GOVERNMENT RIGHT TO DISMISS CERTAIN AC-
TIONS. 
Section 3730(b) of title 31, United States Code, is 
amended by adding at the end the following: 
‘‘(6)(A) Not later than 60 days after the date of serv-
ice under paragraph (2), the Government may move to dis-
miss from the action the person bringing the action if the 
person is an employee of the Federal Government and— 
‘‘(i) all the necessary and specific material alle-
gations contained in such action were derived from 
an open and active fraud investigation by the execu-
tive branch of the Government; or 
‘‘(ii) subject to subparagraph (B), the person 
bringing the action learned of the information that 
underlies the alleged violation of section 3729 that 
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is the basis of the action in the course of the per-
son’s employment by the United States. 
‘‘(B) In the case of a person to whom subparagraph 
(A)(ii) applies— 
‘‘(i) if the employing agency has an Inspector 
General and the person, before bringing the action— 
‘‘(I) disclosed in writing to the Inspector 
General substantially all material evidence and 
information that relates to the alleged violation 
that the person possessed, and 
‘‘(II) notified in writing the person’s super-
visor and the Attorney General of the disclosure 
under subclause (I), or 
‘‘(ii) if the employing agency does not have an 
Inspector General and the person, before bringing 
the action— 
‘‘(I) disclosed in writing to the Attorney 
General substantially all material evidence and 
information that relates to the alleged violation 
that the person possessed, and 
‘‘(II) notified in writing the person’s super-
visor of the disclosure under subclause (I), 
the motion under subparagraph (A) may be brought only 
after a period of 12 months (and any extension under sub-
paragraph (C)) has elapsed since the disclosure of infor-
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mation and notification under clause (i) or (ii) was made, 
and only if the Attorney General has filed an action under 
this section based on such information. 
‘‘(C) Before the end of the 12-month period described 
under subparagraph (B), and upon notice to the person 
who has disclosed information and provided notice under 
subparagraph (B)(i) or (ii), the Attorney General may file 
a motion seeking an extension of that 12-month period. 
The court may extend that 12-month period for an addi-
tional period of not more than 12 months upon a showing 
by the Government that the additional period is necessary 
for the Government to decide whether or not to file an 
action under this section based on the information. Any 
such motion may be filed in camera and may be supported 
by affidavits or other submissions in camera. 
‘‘(D) For purposes of subparagraph (B), a person’s 
supervisor is the officer or employee who— 
‘‘(i) is in a position of the next highest classi-
fication to the position of such person; 
‘‘(ii) has supervisory authority over such per-
son; and 
‘‘(iii) such person believes is not culpable of the 
violation upon which the action under this sub-
section is brought by such person. 
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‘‘(E) A motion to dismiss under this paragraph shall 
set forth documentation of the allegations, evidence, and 
information in support of the motion. 
‘‘(F) Any person bringing an action under paragraph 
(1) shall be provided an opportunity to contest a motion 
to dismiss under this paragraph. The court may restrict 
access to the evidentiary materials filed in support of the 
motion to dismiss, as the interests of justice require. A 
motion to dismiss and papers filed in support or opposition 
of such motion may not be— 
‘‘(i) made public without the prior written con-
sent of the person bringing the civil action; and 
‘‘(ii) subject to discovery by the defendant. 
‘‘(G) If the motion to dismiss under this paragraph 
is granted, the matter shall remain under seal. 
‘‘(H) Not later than 6 months after the date of the 
enactment of this paragraph, and every 6 months there-
after, the Attorney General shall submit to the Committee 
on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives a report on— 
‘‘(i) the cases in which the Department of Jus-
tice has filed a motion to dismiss under this para-
graph; 
‘‘(ii) the outcome of such motions; and 
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‘‘(iii) the status of the civil actions in which 
such motions were filed.’’. 
SEC. 8. EFFECTIVE DATE. 
The amendments made by this Act shall take effect 
on the date of the enactment of this Act and shall apply 
to any case pending on, or filed on or after, that date. 
Æ 
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