I
106TH CONGRESS
1ST SESSION
H. R. 1862
To combat nursing home fraud and abuse, increase protections for victims
of telemarketing fraud, enhance safeguards for pension plans and health
care benefit programs, and enhance penalties for crimes against seniors,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 19, 1999
Mr. CONYERS (for himself, Mr. HOEFFEL, and Mr. UDALL of New Mexico)
introduced the following bill; which was referred to the Committee on the
Judiciary
A BILL
To combat nursing home fraud and abuse, increase protec-
tions for victims of telemarketing fraud, enhance safe-
guards for pension plans and health care benefit pro-
grams, and enhance penalties for crimes against seniors,
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; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Seniors Safety Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I—STRATEGIES FOR PREVENTING CRIMES AGAINST
SENIORS
Sec. 101. Study of crimes against seniors.
Sec. 102. Inclusion of seniors in national crime victimization survey.
TITLE II—COMBATING CRIMES AGAINST SENIORS
Sec. 201. Enhanced sentencing penalties based on age of victim.
Sec. 202. Study and report on health care fraud sentences.
Sec. 203. Increased penalties for fraud resulting in serious injury or death.
Sec. 204. Safeguarding pension plans from fraud and theft.
Sec. 205. Additional civil penalties for defrauding pension plans.
Sec. 206. Punishing bribery and graft in connection with employee benefit
plans.
TITLE III—PREVENTING TELEMARKETING FRAUD
Sec. 301. Centralized complaint and consumer education service for victims of
telemarketing fraud.
Sec. 302. Blocking of telemarketing scams.
TITLE IV—PREVENTING HEALTH CARE FRAUD
Sec. 401. Injunctive authority relating to false claims and illegal kickback
schemes involving Federal health care programs.
Sec. 402. Authorized investigative demand procedures.
Sec. 403. Extending antifraud safeguards to the Federal employee health bene-
fits program.
Sec. 404. Grand jury disclosure.
Sec. 405. Increasing the effectiveness of civil investigative demands in false
claims investigations.
TITLE V—PROTECTING RESIDENTS OF NURSING HOMES
Sec. 501. Short title.
Sec. 502. Nursing home resident protection.
TITLE VI—PROTECTING THE RIGHTS OF ELDERLY CRIME
VICTIMS
Sec. 601. Use of forfeited funds to pay restitution to crime victims and regu-
latory agencies.
Sec. 602. Victim restitution.
Sec. 603. Bankruptcy proceedings not used to shield illegal gains from false
claims.
Sec. 604. Forfeiture for retirement offenses.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) The number of older Americans is growing
both numerically and proportionally in the United
States. Since 1990, the population of seniors has in-
creased by almost 5,000,000, and is now 20.2 per-
cent of the United States population.
(2) In 1997, 7 percent of victims of serious vio-
lent crime were age 50 or older.
(3) In 1997, 17.7 percent of murder victims
were age 55 or older.
(4) According to the National Crime Victimiza-
tion Survey, persons aged 50 and older experienced
approximately 673,460 incidents of violent crime, in-
cluding rape and sexual assaults, robberies and gen-
eral assaults, during 1997.
(5) Older victims of violent crime are almost
twice as likely as younger victims to be raped,
robbed, or assaulted at or in their own homes.
(6) Approximately half of Americans who are
50 years old or older feel afraid to walk alone at
night in their own neighborhoods.
(7) Seniors over the age of 50 reportedly ac-
count 
for 
percent 
of 
the 
estimated
$40,000,000,000 in losses each year due to tele-
marketing fraud.
(8) In 1998, Congress enacted legislation to
provide for increased penalties for telemarketing
fraud that targets seniors.
(9) There has not been a comprehensive study
of crimes committed against seniors since 1994.
(10) It has been estimated that approximately
43 percent of those turning 65 can expect to spend
some time in a long-term care facility, and approxi-
mately 20 percent can expect to spend 5 years or
longer in a such a facility.
(11) In 1997, approximately $82,800,000,000
was spent on nursing home care in the United
States and over half of this amount was spent by the
medicaid and medicare programs.
(12) Losses to fraud and abuse in health care
reportedly cost the United States an estimated
$100,000,000,000 in 1996.
(13) The Inspector General for the Department
of Health and Human Services has estimated that
about $12,600,000,000 in improper medicare benefit
payments, due to inadvertent mistake, fraud and
abuse, were made during fiscal year 1998.
(14) Incidents of health care fraud and abuse
remain high despite awareness of the problem.
(b) PURPOSES.—The purposes of this Act are to—
(1) combat nursing home fraud and abuse;
(2) enhance safeguards for pension plans and
health care programs;
(3) develop strategies for preventing and pun-
ishing crimes that target or otherwise disproportion-
ately affect seniors by collecting appropriate data to
measure the extent of crimes committed against sen-
iors and determine the extent of domestic and elder
abuse of seniors; and
(4) prevent and deter criminal activity, such as
telemarketing fraud, that results in economic and
physical harm against seniors and ensure appro-
priate restitution.
SEC. 3. DEFINITIONS.
In this Act—
(1) the term ‘‘crime’’ means any criminal of-
fense under Federal or State law;
(2) the term ‘‘nursing home’’ means any insti-
tution or residential care facility defined as such for
licensing purposes under State law, or if State law
does not employ the term nursing home, the equiva-
lent term or terms as determined by the Secretary
of Health and Human Services, pursuant to section
1908(e) of the Social Security Act (42 U.S.C.
1396g(e)); and
(3) the term ‘‘senior’’ means an individual who
is more than 55 years of age.
TITLE I—STRATEGIES FOR PRE-
VENTING 
CRIMES 
AGAINST
SENIORS
SEC. 101. STUDY OF CRIMES AGAINST SENIORS.
(a) IN GENERAL.—The Attorney General shall con-
duct a study relating to crimes against seniors, in order
to assist in developing new strategies to prevent and other-
wise reduce the incidence of those crimes.
(b) ISSUES
ADDRESSED.—The study conducted
under this section shall include an analysis of—
(1) the nature and type of crimes perpetrated
against seniors, with special focus on—
(A) the most common types of crimes that
affect seniors;
(B) the nature and extent of telemarketing
fraud against seniors;
(C) the nature and extent of elder abuse
inflicted upon seniors;
(D) the nature and extent of financial and
material fraud targeted at seniors; and
(E) the nature and extent of health care
fraud and abuse targeting seniors;
(2) the risk factors associated with seniors who
have been victimized;
(3) the manner in which the Federal and State
criminal justice systems respond to crimes against
seniors;
(4) the feasibility of States establishing and
maintaining a centralized computer database on the
incidence of crimes against seniors that will promote
the uniform identification and reporting of such
crimes;
(5) the nature and extent of crimes targeting
seniors, such as health care fraud and telemarketing
fraud originating from sources outside the United
States;
(6) the effectiveness of State programs funded
under the 1987 State Elder Abuse Prevention Pro-
gram in preventing and reducing the abuse and ne-
glect of seniors; and
(7) other effective ways to prevent or reduce the
occurrence of crimes against seniors.
(c) REPORT.—Not later than 18 months after the
date of enactment of this Act, the Attorney General shall
submit to the Committees on the Judiciary of the House
of Representatives and the Senate a report describing the
results of the study under this section, which shall also
include—
(1) an assessment of any impact of the sen-
tencing enhancements promulgated by the United
States Sentencing Commission pursuant to section
6(b) of the Telemarketing Fraud Prevention Act of
1998 (28 U.S.C. 994 note), including—
(A) the number of crimes for which sen-
tences were enhanced under that section; and
(B) the effect of those enhanced sentences
in deterring telemarketing fraud crimes tar-
geting seniors;
(2) an assessment of the factors that result in
the inclusion of seniors on the lists of names, ad-
dresses, phone numbers, or Internet addresses com-
piled by telemarketers or sold to telemarketers as
lists of potentially vulnerable consumers (i.e. ‘‘mooch
lists’’); and
(3) an assessment of the nature and extent of
nursing home fraud and abuse, which shall
include—
(A) the number of cases and financial im-
pact on seniors of fraud and abuse involving
nursing homes each year;
(B) procedures used effectively by State,
local and Federal authorities to combat nursing
home fraud and abuse; and
(C) a description of strategies available to
consumers to protect themselves from nursing
home fraud and an evaluation of the effective-
ness of such strategies.
SEC. 102. INCLUSION OF SENIORS IN NATIONAL CRIME VIC-
TIMIZATION SURVEY.
Beginning not later than 2 years after the date of
enactment of this Act, as part of each National Crime Vic-
timization Survey, the Attorney General shall include sta-
tistics relating to—
(1) crimes targeting or disproportionately af-
fecting seniors; and
(2) crime risk factors for seniors, including the
times and locations at which crimes victimizing sen-
iors are most likely to occur; and
(3) specific characteristics of the victims of
crimes who are seniors, including age, gender, race
or ethnicity, and socioeconomic status.
TITLE II—COMBATING CRIMES
AGAINST SENIORS
SEC. 201. ENHANCED SENTENCING PENALTIES BASED ON
AGE OF VICTIM.
(a) DIRECTIVE
TO
THE
UNITED
STATES
SEN-
TENCING COMMISSION.—Pursuant to its authority under
section 994(p) of title 28, United States Code, and in ac-
cordance with this section, the United States Sentencing
Commission shall review and, if appropriate, amend sec-
tion 3A1.1(a) of the Federal sentencing guidelines to in-
clude the age of a crime victim as 1 of the criteria for
determining whether the application of a sentencing en-
hancement is appropriate.
(b) REQUIREMENTS.—In carrying out this section,
the Commission shall—
(1) ensure that the Federal sentencing guide-
lines and the policy statements of the Commission
reflect the serious economic and physical harms as-
sociated with criminal activity targeted at seniors
due to their particular vulnerability;
(2) consider providing increased penalties for
persons convicted of offenses in which the victim was
a senior in appropriate circumstances;
(3) consult with individuals or groups rep-
resenting seniors, law enforcement agencies, victims
organizations, and the Federal judiciary, as part of
the review described in subsection (a);
(4) ensure reasonable consistency with other
Federal sentencing guidelines and directives;
(5) account for any aggravating or mitigating
circumstances that may justify exceptions, including
circumstances for which the Federal sentencing
guidelines provide sentencing enhancements;
(6) make any necessary conforming changes to
the Federal sentencing guidelines; and
(7) ensure that the Federal sentencing guide-
lines adequately meet the purposes of sentencing set
forth in section 3553(a)(2) of title 18, United States
Code.
(c) REPORT.—Not later than December 31, 2000, the
Commission shall submit to Congress a report on issues
relating to the age of crime victims, which shall include—
(1) an explanation of any changes to sentencing
policy made by the Commission under this section;
and
(2) any recommendations of the Commission for
retention or modification of penalty levels, including
statutory penalty levels, for offenses involving sen-
iors.
SEC. 202. STUDY AND REPORT ON HEALTH CARE FRAUD
SENTENCES.
(a) DIRECTIVE
TO
THE
UNITED
STATES
SEN-
TENCING COMMISSION.—Pursuant to its authority under
section 994(p) of title 28, United States Code, and in ac-
cordance with this section, the United States Sentencing
Commission shall review and, if appropriate, amend the
Federal sentencing guidelines and the policy statements
of the Commission with respect to persons convicted of
offenses involving fraud in connection with a health care
benefit program (as defined in section 24(b) of title 18,
United States Code).
(b) REQUIREMENTS.—In carrying out this section,
the Commission shall—
(1) ensure that the Federal sentencing guide-
lines and the policy statements of the Commission
reflect the serious harms associated with health care
fraud and the need for aggressive and appropriate
law enforcement action to prevent such fraud;
(2) consider providing increased penalties for
persons convicted of health care fraud in appropriate
circumstances;
(3) consult with individuals or groups rep-
resenting victims of health care fraud, law enforce-
ment agencies, the health care industry, and the
Federal judiciary as part of the review described in
subsection (a);
(4) ensure reasonable consistency with other
Federal sentencing guidelines and directives;
(5) account for any aggravating or mitigating
circumstances that might justify exceptions, includ-
ing circumstances for which the Federal sentencing
guidelines provide sentencing enhancements;
(6) make any necessary conforming changes to
the Federal sentencing guidelines; and
(7) ensure that the Federal sentencing guide-
lines adequately meet the purposes of sentencing as
set forth in section 3553(a)(2) of title 18, United
States Code.
(c) REPORT.—Not later than December 31, 2000, the
Commission shall submit to Congress a report on issues
relating to offenses described in subsection (a), which shall
include—
(1) an explanation of any changes to sentencing
policy made by the Commission under this section;
and
(2) any recommendations of the Commission for
retention or modification of penalty levels, including
statutory penalty levels, for those offenses.
SEC. 203. INCREASED PENALTIES FOR FRAUD RESULTING
IN SERIOUS INJURY OR DEATH.
Sections 1341 and 1343 of title 18, United States
Code, are each amended by inserting before the last sen-
tence the following: ‘‘If the violation results in serious bod-
ily injury (as defined in section 1365 of this title), such
person shall be fined under this title, imprisoned not more
than 20 years, or both, and if the violation results in
death, such person shall be fined under this title, impris-
oned for any term of years or life, or both.’’.
SEC. 204. SAFEGUARDING PENSION PLANS FROM FRAUD
AND THEFT.
(a) IN GENERAL.—Chapter 63 of title 18, United
States Code, is amended by adding at the end the fol-
lowing:
‘‘§ 1348. Fraud in relation to retirement arrange-
ments
‘‘(a) RETIREMENT ARRANGEMENT DEFINED.—In
this section—
‘‘(1) IN GENERAL.—The term ‘retirement ar-
rangement’ means—
‘‘(A) any employee pension benefit plan
subject to any provision of title I of the Em-
ployee Retirement Income Security Act of 1974;
‘‘(B) any qualified retirement plan within
the meaning of section 4974(c) of the Internal
Revenue Code of 1986;
‘‘(C) any medical savings account de-
scribed in section 220 of the Internal Revenue
Code of 1986; or
‘‘(D) fund established within the Thrift
Savings Fund by the Federal Retirement Thrift
Investment Board pursuant to subchapter III of
chapter 84 of title 5.
‘‘(2) EXCEPTION FOR GOVERNMENTAL PLAN.—
Such term does not include any governmental plan
(as defined in section 3(32) of title I of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1002(32))), except as provided in paragraph
(1)(D).
‘‘(3) CERTAIN
ARRANGEMENTS
INCLUDED.—
Such term shall include any arrangement that has
been represented to be an arrangement described in
any subparagraph of paragraph (1) (whether or not
so described).
‘‘(b) PROHIBITION AND PENALTIES.—Whoever exe-
cutes, or attempts to execute, a scheme or artifice—
‘‘(1) to defraud any retirement arrangement or
other person in connection with the establishment or
maintenance of a retirement arrangement; or
‘‘(2) to obtain, by means of false or fraudulent
pretenses, representations, or promises, any of the
money or property owned by, or under the custody
or control of, any retirement arrangement or other
person in connection with the establishment or main-
tenance of a retirement arrangement;
shall be fined under this title, imprisoned not more than
10 years, or both.
‘‘(c) ENFORCEMENT.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Attorney General may investigate any violation
of and otherwise enforce this section.
‘‘(2) EFFECT ON OTHER AUTHORITY.—Nothing
in this subsection may be construed to preclude the
Secretary of Labor or the head of any other appro-
priate Federal agency from investigating a violation
of this section in relation to a retirement arrange-
ment subject to title I of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1001 et
seq.) or any other provision of Federal law.’’.
(b) TECHNICAL AMENDMENT.—Section 24(a)(1) of
title 18, United States Code, is amended by inserting
‘‘1348,’’ after ‘‘1347,’’.
(c) CONFORMING AMENDMENT.—The analysis for
chapter 63 of title 18, United States Code, is amended
by adding at the end the following:
‘‘1348. Fraud in relation to retirement arrangements.’’.
SEC. 205. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING
PENSION PLANS.
(a) IN GENERAL.—
(1) ACTION BY ATTORNEY GENERAL.—Except
as provided in subsection (b)—
(A) the Attorney General may bring a civil
action in the appropriate district court of the
United States against any person who engages
in conduct constituting an offense under section
1348 of title 18, United States Code, or con-
spiracy to violate such section 1348; and
(B) upon proof of such conduct by a pre-
ponderance of the evidence, such person shall
be subject to a civil penalty in an amount equal
to the greatest of—
(i) the amount of pecuniary gain to
that person;
(ii) the amount of pecuniary loss sus-
tained by the victim; or
(iii) not more than—
(I) $50,000 for each such viola-
tion in the case of an individual; or
(II) $100,000 for each violation
in the case of a person other than an
individual.
(2) NO
EFFECT
ON
OTHER
REMEDIES.—The
imposition of a civil penalty under this subsection
does not preclude any other statutory, common law,
or administrative remedy available by law to the
United States or any other person.
(b) EXCEPTION.—No civil penalty may be imposed
pursuant to subsection (a) with respect to conduct involv-
ing a retirement arrangement that—
(1) is an employee pension benefit plan subject
to title I of Employee Retirement Income Security
Act of 1974; and
(2) for which the civil penalties may be imposed
under section 502 of Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1132).
(c) DETERMINATION OF PENALTY AMOUNT.—In de-
termining the amount of the penalty under subsection (a),
the district court may consider the effect of the penalty
on the violator or other person’s ability to—
(1) restore all losses to the victims; or
(2) provide other relief ordered in another civil
or criminal prosecution related to such conduct, in-
cluding any penalty or tax imposed on the violator
or other person pursuant to the Internal Revenue
Code of 1986.’’.
SEC. 206. PUNISHING BRIBERY AND GRAFT IN CONNEC-
TION WITH EMPLOYEE BENEFIT PLANS.
Section 1954 of title 18, United State Code, is
amended to read as follows:
‘‘§ 1954. Bribery and graft in connection with em-
ployee benefit plans
‘‘(a) DEFINITIONS.—In this section—
‘‘(1) the term ‘employee benefit plan’ means
any employee welfare benefit plan or employee pen-
sion benefit plan subject to any provision of title I
of the Employee Retirement Income Security Act of
1974;
‘‘(2) the terms ‘employee organization’, ‘admin-
istrator’, and ‘employee benefit plan sponsor’ mean
any employee organization, administrator, or plan
sponsor, as defined in title I of the Employment Re-
tirement Income Security Act of 1974; and
‘‘(3) the term ‘applicable person’ means a per-
son who is—
‘‘(A) an administrator, officer, trustee,
custodian, counsel, agent, or employee of any
employee benefit plan;
‘‘(B) an officer, counsel, agent, or em-
ployee of an employer or an employer any of
whose employees are covered by such plan;
‘‘(C) an officer, counsel, agent, or em-
ployee of an employee organization any of
whose members are covered by such plan;
‘‘(D) a person who, or an officer, counsel,
agent, or employee of an organization that, pro-
vides benefit plan services to such plan; or
‘‘(E) a person with actual or apparent in-
fluence or decisionmaking authority in regard
to such plan.
‘‘(b) BRIBERY AND GRAFT.—Whoever—
‘‘(1) being an applicable person, receives or
agrees to receive or solicits, any fee, kickback, com-
mission, gift, loan, money, or thing of value, person-
ally or for any other person, because of or with the
intent to be corruptly influenced with respect to any
action, decision, or duty of that applicable person re-
lating to any question or matter concerning an em-
ployee benefit plan;
‘‘(2) directly or indirectly, gives or offers, or
promises to give or offer, any fee, kickback, commis-
sion, gift, loan, money, or thing of value, to any ap-
plicable person, because of or with the intent to be
corruptly influenced with respect to any action, deci-
sion, or duty of that applicable person relating to
any question or matter concerning an employee ben-
efit plan; or
‘‘(3) attempts to give, accept, or receive any
thing of value with the intent to be corruptly influ-
enced in violation of this subsection;
shall be fined under this title, imprisoned not more than
5 years, or both.
‘‘(c) EXCEPTIONS.—Nothing in this section may be
construed to apply to any—
‘‘(1) payment to or acceptance by any person of
bona fide salary, compensation, or other payments
made for goods or facilities actually furnished or for
services actually performed in the regular course of
his duties as an applicable person; or
‘‘(2) payment to or acceptance in good faith by
any employee benefit plan sponsor, or person acting
on the sponsor’s behalf, of any thing of value relat-
ing to the sponsor’s decision or action to establish,
terminate, or modify the governing instruments of
an employee benefit plan in a manner that does not
violate title I of the Employee Retirement Income
Security Act of 1974, or any regulation or order
promulgated thereunder, or any other provision of
law governing the plan.’’.
TITLE III—PREVENTING
TELEMARKETING FRAUD
SEC. 301. CENTRALIZED COMPLAINT AND CONSUMER EDU-
CATION SERVICE FOR VICTIMS OF TELE-
MARKETING FRAUD.
(a) CENTRALIZED SERVICE.—
(1) REQUIREMENT.—The Federal Trade Com-
mission shall, after consultation with the Attorney
General, establish procedures to—
(A) log and acknowledge the receipt of
complaints by individuals who certify that they
have a reasonable belief that they have been the
victim of fraud in connection with the conduct
of telemarketing (as that term is defined in sec-
tion 2325 of title 18, United States Code, as
amended by section 302(a) of this Act);
(B) provide to individuals described in sub-
paragraph (A), and to any other persons, infor-
mation on telemarketing fraud, including—
(i) 
general 
information 
on 
tele-
marketing fraud, including descriptions of
the most common telemarketing fraud
schemes;
(ii) information on means of referring
complaints on telemarketing fraud to ap-
propriate law enforcement agencies, includ-
ing the Director of the Federal Bureau of
Investigation, the attorneys general of the
States, and the national toll-free telephone
number on telemarketing fraud established
by the Attorney General; and
(iii) information, if available, on the
number of complaints of telemarketing
fraud against particular companies and
any record of convictions for telemarketing
fraud by particular companies for which a
specific request has been made; and
(C) refer complaints described in subpara-
graph (A) to appropriate entities, including
State consumer protection agencies or entities
and appropriate law enforcement agencies, for
potential law enforcement action.
(2) CENTRAL
LOCATION.—The service under
the procedures under paragraph (1) shall be pro-
vided at and through a single site selected by the
Commission for that purpose.
(3) COMMENCEMENT.—The Commission shall
commence carrying out the service not later than 1
year after the date of enactment of this Act.
(b) CREATION OF FRAUD CONVICTION DATABASE.—
(1) REQUIREMENT.—The Attorney General
shall establish and maintain a computer database
containing information on the corporations and com-
panies convicted of offenses for telemarketing fraud
under Federal and State law. The database shall in-
clude a description of the type and method of the
fraud scheme for which each corporation or company
covered by the database was convicted.
(2) USE OF DATABASE.—The Attorney General
shall make information in the database available to
the Federal Trade Commission for purposes of pro-
viding information as part of the service under sub-
section (a).
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sums as may be nec-
essary to carry out this section.
SEC. 302. BLOCKING OF TELEMARKETING SCAMS.
(a) EXPANSION
OF SCOPE
OF TELEMARKETING
FRAUD SUBJECT TO ENHANCED CRIMINAL PENALTIES.—
Section 2325(1) of title 18, United States Code, is amend-
ed by striking ‘‘telephone calls’’ and inserting ‘‘wire com-
munications utilizing a telephone service’’.
(b) BLOCKING
OR TERMINATION
OF TELEPHONE
SERVICE ASSOCIATED WITH TELEMARKETING FRAUD.—
(1) IN GENERAL.—Chapter 113A of title 18,
United States Code, is amended by adding at the
end the following:
‘‘§ 2328. Blocking or termination of telephone service
‘‘(a) IN GENERAL.—If a common carrier subject to
the jurisdiction of the Federal Communications Commis-
sion is notified in writing by the Attorney General, acting
within the Attorney General’s jurisdiction, that any wire
communications facility furnished by such common carrier
is being used or will be used by a subscriber for the pur-
pose of transmitting or receiving a wire communication
in interstate or foreign commerce for the purpose of exe-
cuting any scheme or artifice to defraud, or for obtaining
money or property by means of false or fraudulent pre-
tenses, representations, or promises, in connection with
the conduct of telemarketing, the common carrier shall
discontinue or refuse the leasing, furnishing, or maintain-
ing of the facility to or for the subscriber after reasonable
notice to the subscriber.
‘‘(b) PROHIBITION ON DAMAGES.—No damages, pen-
alty, or forfeiture, whether civil or criminal, shall be found
or imposed against any common carrier for any act done
by the common carrier in compliance with a notice re-
ceived from the Attorney General under this section.
‘‘(c) RELIEF.—
‘‘(1) IN
GENERAL.—Nothing in this section
may be construed to prejudice the right of any per-
son affected thereby to secure an appropriate deter-
mination, as otherwise provided by law, in a Federal
court, that—
‘‘(A) the leasing, furnishing, or maintain-
ing of a facility should not be discontinued or
refused under this section; or
‘‘(B) the leasing, furnishing, or maintain-
ing of a facility that has been so discontinued
or refused should be restored.
‘‘(2) SUPPORTING INFORMATION.—In any ac-
tion brought under this subsection, the court may
direct that the Attorney General present evidence in
support of the notice made under subsection (a) to
which such action relates.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) REASONABLE
NOTICE
TO
THE
SUB-
SCRIBER.—
‘‘(A) IN GENERAL.—The term ‘reasonable
notice to the subscriber’, in the case of a sub-
scriber of a common carrier, means any infor-
mation necessary to provide notice to the sub-
scriber that—
‘‘(i) the wire communications facilities
furnished by the common carrier may not
be used for the purpose of transmitting,
receiving, forwarding, or delivering a wire
communication in interstate or foreign
commerce for the purpose of executing any
scheme or artifice to defraud in connection
with the conduct of telemarketing; and
‘‘(ii) such use constitutes sufficient
grounds for the immediate discontinuance
or refusal of the leasing, furnishing, or
maintaining of the facilities to or for the
subscriber.
‘‘(B) INCLUDED MATTER.—The term in-
cludes any tariff filed by the common carrier
with the Federal Communications Commission
that contains the information specified in sub-
paragraph (A).
‘‘(2) WIRE COMMUNICATION.—The term ‘wire
communication’ has the meaning given that term in
section 2510(1) of this title.
‘‘(3) WIRE
COMMUNICATIONS
FACILITY.—The
term ‘wire communications facility’ means any facil-
ity (including instrumentalities, personnel, and serv-
ices) used by a common carrier for purposes of the
transmission, receipt, forwarding, or delivery of wire
communications.’’.
(2) CONFORMING AMENDMENT.—The analysis
for that chapter is amended by adding at the end
the following:
‘‘2328. Blocking or termination of telephone service.’’.
TITLE IV—PREVENTING HEALTH
CARE FRAUD
SEC. 401. INJUNCTIVE AUTHORITY RELATING TO FALSE
CLAIMS AND ILLEGAL KICKBACK SCHEMES
INVOLVING FEDERAL HEALTH CARE PRO-
GRAMS.
(a) IN GENERAL.—Section 1345(a) of title 18,
United States Code, is amended—
(1) in paragraph (1)—
(A) in subparagraph (B), by striking
‘‘, or’’ and inserting a semicolon;
(B) in subparagraph (C), by striking the
period at the end and inserting ‘‘; or’’; and
(C) by inserting after subparagraph (C)
the following:
‘‘(D) committing or about to commit an offense
under section 1128B of the Social Security Act (42
U.S.C. 1320a–7b);’’; and
(2) in paragraph (2), by inserting ‘‘a violation
of paragraph (1)(D) or’’ before ‘‘a banking’’.
(b) CIVIL ACTIONS.—
(1) IN GENERAL.—Section 1128B of the Social
Security Act (42 U.S.C. 1320a–7b) is amended by
adding at the end the following:
‘‘(g) CIVIL ACTIONS.—
‘‘(1) IN GENERAL.—The Attorney General may
bring an action in the appropriate district court of
the United States to impose upon any person who
carries out any activity in violation of this section
with respect to a Federal health care program a civil
penalty of not more than $50,000 for each such vio-
lation, or damages of 3 times the total remuneration
offered, paid, solicited, or received, whichever is
greater.
‘‘(2) EXISTENCE
OF
VIOLATION.—A violation
exists under paragraph (1) if 1 or more purposes of
the remuneration is unlawful, and the damages shall
be the full amount of such remuneration.
‘‘(3) PROCEDURES.—An action under para-
graph (1) shall be governed by—
‘‘(A) the procedures with regard to sub-
poenas, statutes of limitations, standards of
proof, and collateral estoppel set forth in sec-
tion 3731 of title 31, United States Code; and
‘‘(B) the Federal Rules of Civil Procedure.
‘‘(4) NO EFFECT ON OTHER REMEDIES.—Noth-
ing in this section may be construed to affect the
availability of any other criminal or civil remedy.
‘‘(h) INJUNCTIVE RELIEF.—The Attorney General
may commence a civil action in an appropriate district
court of the United States to enjoin a violation of this
section, as provided in section 1345 of title 18, United
States Code.’’.
(2) CONFORMING AMENDMENT.—The heading
of section 1128B of the Social Security Act (42
U.S.C. 1320a–7b) is amended by inserting ‘‘AND
CIVIL’’ after ‘‘CRIMINAL’’.
SEC. 402. AUTHORIZED INVESTIGATIVE DEMAND PROCE-
DURES.
Section 3486 of title 18, United States Code, is
amended—
(1) in subsection (a), by inserting ‘‘, or any al-
legation of fraud or false claims (whether criminal or
civil) in connection with a Federal health care pro-
gram (as defined in section 1128B(f) of the Social
Security Act (42 U.S.C. 1320a–7b(f))),’’ after ‘‘Fed-
eral health care offense,’’; and
(2) by adding at the end the following:
‘‘(f) PRIVACY PROTECTION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any record (including any book, paper,
document, electronic medium, or other object or tan-
gible thing) produced pursuant to a subpoena issued
under this section that contains personally identifi-
able health information may not be disclosed to any
person, except pursuant to a court order under sub-
section (e)(1).
‘‘(2) EXCEPTIONS.—A record described in para-
graph (1) may be disclosed—
‘‘(A) to an attorney for the government for
use in the performance of the official duty of
the attorney (including presentation to a Fed-
eral grand jury);
‘‘(B) to such government personnel (in-
cluding personnel of a State or subdivision of a
State) as are determined to be necessary by an
attorney for the government to assist an attor-
ney for the government in the performance of
the official duty of that attorney to enforce
Federal criminal law;
‘‘(C) as directed by a court preliminarily to
or in connection with a judicial proceeding; and
‘‘(D) as permitted by a court—
‘‘(i) at the request of a defendant in
an administrative, civil, or criminal action
brought by the United States, upon a
showing that grounds may exist for a mo-
tion to exclude evidence obtained under
this section; or
‘‘(E) at the request of an attorney for the
government, upon a showing that such matters
may disclose a violation of State criminal law,
to an appropriate official of a State or subdivi-
sion of a State for the purpose of enforcing
such law.
‘‘(3) MANNER
OF
COURT
ORDERED
DISCLO-
SURES.—If a court orders the disclosure of any
record described in paragraph (1), the disclosure
shall be made in such manner, at such time, and
under such conditions as the court may direct and
shall be undertaken in a manner that preserves the
confidentiality and privacy of individuals who are the
subject of the record, unless disclosure is required by
the nature of the proceedings, in which event the at-
torney for the government shall request that the pre-
siding judicial or administrative officer enter an
order limiting the disclosure of the record to the
maximum extent practicable, including redacting the
personally identifiable health information from pub-
licly disclosed or filed pleadings or records.
‘‘(4) DESTRUCTION OF RECORDS.—Any record
described in paragraph (1), and all copies of that
record, in whatever form (including electronic) shall
be destroyed not later than 90 days after the date
on which the record is produced, unless otherwise or-
dered by a court of competent jurisdiction, upon a
showing of good cause.
‘‘(5) EFFECT OF VIOLATION.—Any person who
knowingly fails to comply with this subsection may
be punished as in contempt of court.
‘‘(g) PERSONALLY IDENTIFIABLE HEALTH INFORMA-
TION DEFINED.—In this section, the term ‘personally
identifiable health information’ means any information, in-
cluding genetic information, demographic information,
and tissue samples collected from an individual, whether
oral or recorded in any form or medium, that—
‘‘(1) relates to the past, present, or future phys-
ical or mental health or condition of an individual,
the provision of health care to an individual, or the
past, present, or future payment for the provision
of health care to an individual; and
‘‘(2) either—
‘‘(A) identifies an individual; or
‘‘(B) with respect to which there is a rea-
sonable basis to believe that the information
can be used to identify an individual.’’.
SEC. 403. EXTENDING ANTIFRAUD SAFEGUARDS TO THE
FEDERAL 
EMPLOYEE 
HEALTH 
BENEFITS
PROGRAM.
Section 1128B(f)(1) of the Social Security Act (42
U.S.C. 1320a–7b(f)(1)) is amended by striking ‘‘(other
than the health insurance program under chapter 89 of
title 5, United States Code)’’.
SEC. 404. GRAND JURY DISCLOSURE.
Section 3322 of title 18, United States Code, is
amended—
(1) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(2) by inserting after subsection (b) the fol-
lowing:
‘‘(c) GRAND JURY DISCLOSURE.—Subject to section
3486(f), upon ex parte motion of an attorney for the gov-
ernment showing that such disclosure would be of assist-
ance to enforce any provision of Federal law, a court may
direct the disclosure of any matter occurring before a
grand jury during an investigation of a Federal health
care offense (as defined in section 24(a) of this title) to
an attorney for the government to use in any investigation
or civil proceeding relating to fraud or false claims in con-
nection with a Federal health care program (as defined
in section 1128B(f) of the Social Security Act (42 U.S.C.
1320a–7b(f))).’’.
SEC. 405. INCREASING THE EFFECTIVENESS OF CIVIL IN-
VESTIGATIVE DEMANDS IN FALSE CLAIMS IN-
VESTIGATIONS.
Section 3733 of title 31, United States Code, is
amended—
(1) in subsection (a)(1), in the second sentence,
by inserting ‘‘, except to the Deputy Attorney Gen-
eral or to an Assistant Attorney General’’ before the
period at the end; and
(2) in subsection (i)(2)(C), by adding at the end
the following: ‘‘Disclosure of information to a person
who brings a civil action under section 3730, or such
person’s counsel, shall be allowed only upon applica-
tion to a United States district court showing that
such disclosure would assist the Department of Jus-
tice in carrying out its statutory responsibilities.’’.
TITLE V—PROTECTING
RESIDENTS OF NURSING HOMES
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Nursing Home Resi-
dent Protection Act of 1999’’.
SEC. 502. NURSING HOME RESIDENT PROTECTION.
(a) PROTECTION OF RESIDENTS IN NURSING HOMES
AND OTHER RESIDENTIAL HEALTH CARE FACILITIES.—
Chapter 63 of title 18, United States Code, is amended
by adding at the end the following:
‘‘§ 1349. Pattern of violations resulting in harm to
residents of nursing homes and related
facilities
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) ENTITY.—The term ‘entity’ means any
residential health care facility (including facilities
that do not exclusively provide residential health
care services), any entity that manages a residential
health care facility, or any entity that owns, directly
or indirectly, a controlling interest or a 50 percent
or greater interest in 1 or more residential health
care facilities including States, localities, and polit-
ical subdivisions thereof.
‘‘(2) FEDERAL HEALTH CARE PROGRAM.—The
term ‘Federal health care program’ has the meaning
given that term in section 1128B(f) of the Social Se-
curity Act.
‘‘(3) PATTERN
OF
VIOLATIONS.—The term
‘pattern of violations’ means multiple violations of a
single Federal or State law, regulation, or rule or
single violations of multiple Federal or State laws,
regulations, or rules, that are widespread, systemic,
repeated, similar in nature, or result from a policy
or practice.
‘‘(4) RESIDENTIAL HEALTH CARE FACILITY.—
The term ‘residential health care facility’ means any
facility (including any facility that does not exclu-
sively provide residential health care services) includ-
ing skilled and unskilled nursing facilities and men-
tal health and mental retardation facilities, that—
‘‘(A) receives Federal funds, directly from
the Federal Government or indirectly from a
third party on contract with or receiving a
grant or other monies from the Federal govern-
ment, to provide health care; or
‘‘(B) provides health care services in a res-
idential setting and, in any calendar year in
which a violation occurs, is the recipient of ben-
efits or payments in excess of $10,000 from a
Federal health care program.
such a residential health care facility), not more
than $10,000;
‘‘(B) in the case of an individual who is an
owner, operator, officer, or manager of such a
residential health care facility, not more than
$100,000 for each separate facility involved in
the pattern of violations under this section; or
‘‘(C) in the case of a residential health
care facility, not more than $1,000,000 for each
pattern of violations, and in the case of an enti-
ty, not more than $1,000,000 for each separate
residential health care facility involved in the
pattern of violations owned or managed by that
entity.
‘‘(2) OTHER APPROPRIATE RELIEF.—If the At-
torney General has reason to believe that an indi-
vidual or entity is engaging in or is about to engage
in a pattern of violations that would affect the
health, safety, or care of individuals residing in a
residential health care facility, and that results in or
has the potential to result in physical or mental
harm to 1 or more such residents, the Attorney Gen-
eral may petition an appropriate district court of the
United States for appropriate equitable and declara-
tory relief to eliminate the pattern of violations.
‘‘(3) PROCEDURES.—In any action under this
subsection—
‘‘(A) a subpoena requiring the attendance
of a witness at a trial or hearing may be served
at any place in the United States;
‘‘(B) the action may not be brought more
than 6 years after the date on which the viola-
tion occurs;
‘‘(C) the United States shall be required to
prove each charge by a preponderance of the
evidence;
‘‘(D) the civil investigative demand proce-
dures set forth in the Antitrust Civil Process
Act (15 U.S.C. 1311 et seq.) and regulations
promulgated pursuant thereto shall apply to
any investigation; and
‘‘(E) the filing or resolution of a matter
shall not preclude any other remedy that is
available to the United States or any other per-
son.
‘‘(d) PROHIBITION
AGAINST
RETALIATION.—Any
person who is the subject of retaliation, either directly or
indirectly, for reporting a condition that may constitute
grounds for relief under this section may bring an action
in an appropriate district court of the United States for
damages, attorneys’ fees, and other relief.’’.
(b) AUTHORIZED INVESTIGATIVE DEMAND PROCE-
DURES.—Section 3486(a)(1) of title 18, United States
Code, is amended by inserting ‘‘or act or activity involving
section 1349 of this title’’ after ‘‘Federal health care of-
fense’’.
(c) CONFORMING AMENDMENT.—The analysis for
chapter 63 of title 18 United States Code, is amended by
adding at the end the following:
‘‘1349. Pattern of violations resulting in harm to residents of nursing homes and
related facilities.’’.
TITLE 
VI—PROTECTING 
THE
RIGHTS OF ELDERLY CRIME
VICTIMS
SEC. 601. USE OF FORFEITED FUNDS TO PAY RESTITUTION
TO CRIME VICTIMS AND REGULATORY AGEN-
CIES.
Section 981(e) of this title 18, United States Code,
is amended—
(1) in each of paragraphs (3), (4), and (5), by
striking ‘‘in the case of property referred to in sub-
section (a)(1)(C)’’ and inserting ‘‘in the case of
property forfeited in connection with an offense re-
sulting in a pecuniary loss to a financial institution
or regulatory agency’’;
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) as restoration to any victim of the offense
giving rise to the forfeiture, including, in the case of
a money laundering offense, any offense constituting
the underlying specified unlawful activity; or’’; and
(3) in paragraph (7), by striking ‘‘in the case
of property referred to in subsection (a)(1)(D)’’ and
inserting ‘‘in the case of property forfeited in con-
nection with an offense relating to the sale of assets
acquired or held by any Federal financial institution
or regulatory agency, or person appointed by such
agency, as receiver, conservator, or liquidating agent
for an financial institution’’.
SEC. 602. VICTIM RESTITUTION.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding at the end the fol-
lowing:
‘‘(r) VICTIM RESTITUTION.—
‘‘(1) SATISFACTION
OF
ORDER
OF
RESTITU-
TION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), a defendant may not use
property subject to forfeiture under this section
to satisfy an order of restitution.
‘‘(B) EXCEPTION.—If there are 1 or more
identifiable victims entitled to restitution from a
defendant, and the defendant has no assets
other than the property subject to forfeiture
with which to pay restitution to the victim or
victims, the attorney for the Government may
move to dismiss a forfeiture allegation against
the defendant before entry of a judgment of
forfeiture in order to allow the property to be
used by the defendant to pay restitution in
whatever manner the court determines to be ap-
propriate if the court grants the motion. In
granting a motion under this subparagraph, the
court shall include a provision ensuring that
costs associated with the identification, seizure,
management, and disposition of the property
are recovered by the United States.
‘‘(2) RESTORATION
OF
FORFEITED
PROP-
ERTY.—
‘‘(A) IN
GENERAL.—If an order of for-
feiture is entered pursuant to this section and
the defendant has no assets other than the for-
feited property to pay restitution to 1 or more
identifiable victims who are entitled to restitu-
tion, the Government shall restore the forfeited
property to the victims pursuant to subsection
(i)(1) once the ancillary proceeding under sub-
section (n) has been completed and the costs of
the forfeiture action have been deducted.
‘‘(B) DISTRIBUTION
OF
PROPERTY.—On
motion of the attorney for the Government, the
court may enter any order necessary to facili-
tate the distribution of any property restored
under this paragraph.
‘‘(3) VICTIM DEFINED.—In this subsection, the
term ‘victim’—
‘‘(A) means a person other than a person
with a legal right, title, or interest in the for-
feited property sufficient to satisfy the standing
requirements of subsection (n)(2) who may be
entitled to restitution from the forfeited funds
pursuant to section 9.8 of part 9 of title 28,
Code of Federal Regulations (or any successor
to that regulation); and
‘‘(B) includes any person who is the victim
of the offense giving rise to the forfeiture, or of
any offense that was part of the same scheme,
conspiracy, or pattern of criminal activity, in-
cluding, in the case of a money laundering of-
fense, any offense constituting the underlying
specified unlawful activity.’’.
SEC. 603. BANKRUPTCY PROCEEDINGS NOT USED TO
SHIELD 
ILLEGAL 
GAINS 
FROM 
FALSE
CLAIMS.
(a) CERTAIN ACTIONS NOT STAYED
BY BANK-
RUPTCY PROCEEDINGS.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the commencement or continuation
of an action under section 3729 of title 31, United
States Code, does not operate as a stay under sec-
tion 105(a) or 362(a)(1) of title 11, United States
Code.
(2) 
CONFORMING
AMENDMENT.—Section
362(b) of title 11, United States Code, is
amended—
(A) in paragraph (17), by striking ‘‘or’’ at
the end;
(B) in paragraph (18), by striking the pe-
riod at the end and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(19) the commencement or continuation of an
action under section 3729 of title 31.’’.
‘‘(A) IN
GENERAL.—The court, in imposing
sentence on a person convicted of a retirement of-
fense, shall order the person to forfeit property, real
or personal, that constitutes or that is derived, di-
rectly or indirectly, from proceeds traceable to the
commission of the offense.
‘‘(B) RETIREMENT
OFFENSE
DEFINED.—In
this paragraph, the term ‘retirement offense’ means
a violation of any of the following provisions of law,
if the violation, conspiracy, or solicitation relates to
a retirement arrangement (as defined in section
1348 of title 18, United States Code):
‘‘(i) Section 664, 1001, 1027, 1341, 1343,
1348, 1951, 1952, or 1954 of title 18, United
States Code.
‘‘(ii) Sections 411, 501, or 511 of the Em-
ployee Retirement Income Security Act of 1974
(29 U.S.C. 1111, 1131, 1141).’’.
(b) CIVIL FORFEITURE.—Section 981(a)(1) of title
18, United States Code, is amended by adding at the end
the following:
‘‘(G) Any property, real or personal, that con-
stitutes or is derived, directly or indirectly, from pro-
ceeds traceable to the commission of a violation of,
a criminal conspiracy to violated or solicitation to
commit a crime of violence involving a retirement of-
fense (as defined in section 982(a)(9)(B)).’’.
Æ