Title: False Claims Amendments Act of 2021
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. The bill changes the evidentiary standards for proving materiality by allowing the government or relator to establish materiality by a preponderance of the evidence. A defendant may rebut an argument of materiality by clear and convincing evidence.
In an action brought under the FCA, the government may elect to intervene as a party to the action. If the government elects not to intervene, this bill requires the court to order the requesting party, upon a motion by the government, to pay the government's attorney's fees and other expenses for responding to the party's discovery requests, with exceptions.
The government shall have the burden of demonstrating reasons for dismissing an action over the objections of the relator. The relator must have the opportunity to show that the reasons are 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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2428 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2428

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2021

Mr. Grassley (for himself, Mr. Leahy, Mr. Kennedy, Mr. Durbin, and Mr. 
    Wicker) introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   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,

SECTION 1. SHORT TITLE.

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

SEC. 2. FALSE CLAIMS PROCEDURE.

    (a) Proving Materiality.--Section 3729 of title 31, United States 
Code, is amended by adding at the end the following:
    ``(e) Proving Materiality.--
            ``(1) In general.--In an action under this section, the 
        Government or relator may establish materiality by a 
        preponderance of the evidence.
            ``(2) Rebuttal.--A defendant may rebut an argument of 
        materiality under paragraph (1) by clear and convincing 
        evidence.''.
    (b) Costs.--Section 3731 of title 31, United States Code, is 
amended by adding at the end the following:
    ``(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.''.

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 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''.

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 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--
            (1) a description of the benefits and challenges of 
        enforcement efforts under the False Claims Act (31 U.S.C. 3729 
        et seq.); 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 (31 U.S.C. 3729 et seq.) that 
is--
            (1) filed on or after the date of enactment of this Act; or
            (2) pending on the date of enactment of this Act.
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