False Claims Amendments Act of 2021

Bill: 117-s-2428
Sponsor: Sen. Grassley, Chuck [R-IA]
Introduced: 2021-07-22 in the Senate
Policy area: Government Operations and Politics
Subjects: Civil actions and liability
Congressional oversight
Evidence and witnesses
Fraud offenses and financial crimes
Government studies and investigations
Legal fees and court costs

Summary:
action_date: 2021-07-22
text: 

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.

action_date: 2021-11-16
text: 

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.


Legislative actions:
action_date: 2021-11-16
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 166.
action_date: 2021-11-16
text: Committee on the Judiciary. Reported by Senator Durbin with an amendment in the nature of a substitute. Without written report.
action_date: 2021-11-16
text: Committee on the Judiciary. Reported by Senator Durbin with an amendment in the nature of a substitute. Without written report.
action_date: 2021-10-28
text: Committee on the Judiciary. Ordered to be reported with an amendment in the nature of a substitute favorably.
action_date: 2021-07-22
text: Read twice and referred to the Committee on the Judiciary.
action_date: 2021-07-22
text: Introduced in Senate