False Claims Amendments Act of 2021

Bill: 117-s-2428
Sponsor: full_name: Sen. Grassley, Chuck [R-IA]
Introduced: 2021-07-22
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
Latest action: action_date: 2021-11-16
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 166.

Summaries:
action_date: 2021-07-22
action_desc: Introduced in Senate
text: <p><strong>False Claims Amendments Act of 2021</strong></p> <p>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.</p> <p>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.</p> <p>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.</p> <p>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.</p> <p>The bill extends relief from retaliatory actions to former employees.</p> <p>The Government Accountability Office must report on the effectiveness of the FCA.</p>

action_date: 2021-11-16
action_desc: Reported to Senate
text: <p><strong>False Claims Amendments Act of 2021</strong></p> <p>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.</p> <p>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.</p> <p>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.</p> <p>The bill extends relief from retaliatory actions to former employees.</p> <p>The Government Accountability Office must report on the effectiveness of the FCA.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2428 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.

1. Short title This Act may be cited as the False Claims Amendments Act of 2021 . 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. . 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 . 4. Post-employment whistleblower retaliation Section 3730(h)(1) of title 31, United States Code, is amended by inserting current or former after Any . 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). 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.

tv_txt: II Calendar No. 166 117th CONGRESS 1st Session S. 2428 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 November 16, 2021 Reported by Mr. Durbin , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To amend title 31, United States Code, to modify False Claims Act procedures, and for other purposes.

1. Short title This Act may be cited as the False Claims Amendments Act of 2021 . 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. . 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 . 4. Post-employment whistleblower retaliation Section 3730(h)(1) of title 31, United States Code, is amended by inserting current or former after Any . 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). 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.

1. Short title This Act may be cited as the False Claims Amendments Act of 2021 . 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. . 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 . 4. Post-employment whistleblower retaliation Section 3730(h)(1) of title 31, United States Code, is amended by inserting current or former after Any . 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). 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.

November 16, 2021 Reported with an amendment