False Claims Amendments Act of 2021
Bill: S.2428 | Sponsor: Sen. Grassley, Chuck (R-IA)
Policy area: Government Operations and Politics

Summary:
False Claims Amendments Act of 2021
This bill revises procedures under the False Claims Act (FCA), a law that rewards whistleblowers (known as relators) who bring claims on behalf of the government by allowing them to share in the recovery in cases where the government recovers funds lost to fraud.
To be recoverable under the FCA, a fraud must meet, among other conditions, standards for materiality. In determining materiality, the decision of the government to forego a refund or to pay a claim despite actual knowledge of fraud or falsity shall not be considered dispositive if other reasons exist for that decision with respect to such refund or payment.
In dismissing an action over the objections of the relator, the government must identify a valid government purpose and a rational relation between dismissal and accomplishment of the purpose. The relator must have the opportunity to show that the dismissal is fraudulent, arbitrary and capricious, or contrary to law.
The bill extends relief from retaliatory actions to former employees.
The Government Accountability Office must report on the effectiveness of the FCA.

To amend title 31, United States Code, to modify False Claims Act 
                  procedures, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``False Claims Amendments Act 
of 2021''.</DELETED>

<DELETED>SEC. 2. FALSE CLAIMS PROCEDURE.</DELETED>

<DELETED>    (a) Proving Materiality.--Section 3729 of title 31, United 
States Code, is amended by adding at the end the following:</DELETED>
<DELETED>    ``(e) Proving Materiality.--</DELETED>
        <DELETED>    ``(1) In general.--In an action under this 
        section, the Government or relator may establish materiality by 
        a preponderance of the evidence.</DELETED>
        <DELETED>    ``(2) Rebuttal.--A defendant may rebut an argument 
        of materiality under paragraph (1) by clear and convincing 
        evidence.''.</DELETED>
<DELETED>    (b) Costs.--Section 3731 of title 31, United States Code, 
is amended by adding at the end the following:</DELETED>
<DELETED>    ``(f) If the Government elects not to intervene in an 
action brought under section 3730(b), the court shall, upon a motion by 
the Government, order the requesting party to pay the Government's 
expenses, including costs and attorneys' fees, for responding to the 
party's discovery requests, unless the party can demonstrate that the 
information sought is relevant, proportionate to the needs of the case, 
and not unduly burdensome on the Government.''.</DELETED>

<DELETED>SEC. 3. RIGHTS OF THE PARTIES TO QUI TAM ACTIONS.</DELETED>

<DELETED>    Section 3730(c)(2)(A) of title 31, United States Code, is 
amended by inserting before the period at the end the following: ``, at 
which the Government shall have the burden of demonstrating reasons for 
dismissal, and the qui tam plaintiff shall have the opportunity to show 
that the reasons are fraudulent, arbitrary and capricious, or contrary 
to law''.</DELETED>

<DELETED>SEC. 4. POST-EMPLOYMENT WHISTLEBLOWER RETALIATION.</DELETED>

<DELETED>    Section 3730(h)(1) of title 31, United States Code, is 
amended by inserting ``current or former'' after ``Any''.</DELETED>

<DELETED>SEC. 5. GAO REPORT.</DELETED>

<DELETED>    Not later than 18 months after the date of enactment of 
this Act, the Comptroller General of the United States shall submit a 
report to Congress on the effectiveness of the False Claims Act (31 
U.S.C. 3729 et seq.) during the time period beginning on the date of 
enactment of the False Claims Amendments Act of 1986 (Public Law 99-
562; 100 Stat. 3153) and ending on the date of enactment of this Act, 
which shall include--</DELETED>
        <DELETED>    (1) a description of the benefits and challenges 
        of enforcement efforts under the False Claims Act (31 U.S.C. 
        3729 et seq.); and</DELETED>
        <DELETED>    (2) information on the amounts recovered by the 
        Government under the False Claims Act since the date of 
        enactment of the False Claims Amendments Act of 1986 (Public 
        Law 99-562; 100 Stat. 3153).</DELETED>

<DELETED>SEC. 6. APPLICABILITY.</DELETED>

<DELETED>    The amendments made by sections 2, 3, and 4 of this Act 
shall apply to any case under the False Claims Act (31 U.S.C. 3729 et 
seq.) that is--</DELETED>
        <DELETED>    (1) filed on or after the date of enactment of 
        this Act; or</DELETED>
        <DELETED>    (2) pending on the date of enactment of this 
        Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``False Claims Amendments Act of 
2021''.

SEC. 2. FALSE CLAIMS PROCEDURE.

    Section 3729 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) Proving Materiality.--In determining materiality, the 
decision of the Government to forego a refund or to pay a claim despite 
actual knowledge of fraud or falsity shall not be considered 
dispositive if other reasons exist for the decision of the Government 
with respect to such refund or payment.''.

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

    Section 3730(c)(2)(A) of title 31, United States Code, is amended 
by inserting before the period at the end the following: ``, at which 
the Government shall identify a valid government purpose and a rational 
relation between dismissal and accomplishment of the purpose, and the 
person initiating the action shall have the burden of demonstrating 
that the dismissal is fraudulent, arbitrary and capricious, or 
illegal''.

SEC. 4. POST-EMPLOYMENT WHISTLEBLOWER RETALIATION.

    Section 3730(h)(1) of title 31, United States Code, is amended by 
inserting ``current or former'' after ``Any''.

SEC. 5. GAO REPORT.

    Not later than 18 months after the date of enactment of this Act, 
the Comptroller General of the United States shall submit a report to 
Congress on the effectiveness of sections 3729 through 3733 of title 
31, United States Code, (referred to in this Act as the ``False Claims 
Act'') during the time period beginning on the date of enactment of the 
False Claims Amendments Act of 1986 (Public Law 99-562; 100 Stat. 3153) 
and ending on the date of enactment of this Act, which shall include--
            (1) a description of the benefits and challenges of 
        enforcement efforts under the False Claims Act; and
            (2) information on the amounts recovered by the Government 
        under the False Claims Act since the date of enactment of the 
        False Claims Amendments Act of 1986 (Public Law 99-562; 100 
        Stat. 3153).

SEC. 6. APPLICABILITY.

    The amendments made by sections 2, 3, and 4 of this Act shall apply 
to any case under the False Claims Act that is filed on or after the 
date of enactment of this Act.
                                                       Calendar No. 166

117th CONGRESS

  1st Session

                                S. 2428

_______________________________________________________________________