False Claims Amendments Act of 1986
PL 99-562 (S.1562), enacted 10/27/1986

PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3153 
Public Law 99-562 
99th Congress 
An Act 
To amend title 31, United States Code, with respect to the fraudulent use of public 
property or money. 
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 
1986". 
SEC. 2. FALSE CLAIMS. 
Section 3729 of title 31, United States Code, is amended— 
(1) by striking the matter preceding paragraph (1) and insert-
ing the following: 
"(a) LIABILITY FOR CERTAIN ACTS.—Any person who—"; 
(2) in paragraph (1) by striking "Government or a member of 
an armed force" and inserting "United States Government or a 
member of the Armed Forces of the United States"; 
(3) in paragraph (2) by inserting "by the Government" after 
"approved"; 
(4) in paragraph (4)— 
(A) by striking "public"; and 
(B) by striking "in an armed force" and inserting "by the 
Government"; 
(5) in paragraph (5)— 
(A) by striking "in an armed force" and inserting "by the 
Government"; and 
(B) by striking "or" after the semicolon; 
(6) in paragraph (6)— 
(A) by striking "a member of an armed force" and insert-
ing "an officer or employee of the Government, or a 
member of the Armed Forces,"; and 
(B) by striking the period at the end of the paragraph and 
inserting "; or"; and 
(7) by adding at the end of the subsection the following: 
"(7) knowingly makes, uses, or causes to be made or used, a 
false record or statement to conceal, avoid, or decrease an 
obligation to pay or transmit money or property to the 
Government, 
is liable to the United States Government for a civil penalty of not 
less than $5,000 and not more than $10,000, plus 3 times the amount 
of damages which the Government sustains because of the act of 
that person, except that if the court finds that— 
"(A) the person committing the violation of this subsection 
furnished officials of the United States responsible for inves-
i 
tigating false claims violations with all information known to 
such person about the violation within 30 days after the date on 
which the defendant first obtained the information; 
Oct. 27, 1986 
[S. 1562] 
False Claims 
Amendments 
Act of 1986. 
Courts, U.S. 
31 u s e 3701 
note. 
Armed Forces. 
100 STAT. 3154 
PUBLIC LAW 99-562—OCT. 27, 1986 
"(B) such person fully cooperated with any Government invest-
tigation of such violation; and 
"(C) at the time such person furnished the United States with 
the information about the violation, no criminal prosecution, 
civil action, or administrative action had commenced under this 
title with respect to such violation, and the person did not have 
actual knowledge of the existence of an investigation into such 
violation; 
the court may assess not less than 2 times the amount of damages 
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• -. 
which the Government sustains because of the act of the person. A 
person violating this subsection shall also be liable to the United 
V . , 
States Government for the costs of a civil action brought to recover 
any such penalty or damages. 
"(b) KNOWING AND KNOWINGLY DEFINED.—For purposes of this 
section, the terms 'knowing' and 'knowingly' mean that a person, 
, I ,,G 
with respect to information— 
"(1) has actual knowledge of the information; 
"(2) acts in deliberate ignorance of the truth or falsity of the 
information; or 
"(3) acts in reckless disregard of the truth or falsity of the 
information, 
and no proof of specific intent to defraud is required. 
"(c) CLAIM DEFINED.—For purposes of this section, 'claim' includes 
any request or demand, whether under a contract or otherwise, for 
money or property which is made to a contractor, grantee, or other 
recipient if the United States Government provides any portion of 
the money or property which is requested or demanded, or if the 
Government will reimburse such contractor, grantee, or other 
recipient for any portion of the money or property which is re-
quested or demanded. 
"(d) EXEMPTION FROM DISCLOSURE.—Any information furnished 
pursuant to subparagraphs (A) through (C) of subsection (a) shall be 
exempt from disclosure under section 552 of title 5. 
"(e) EXCLUSION.—This section does not apply to claims, records, or 
26 use 1 et seq. statements made under the Internal Revenue Code of 1954.". 
SEC. 3. CIVIL ACTIONS FOR FALSE CLAIMS. 
Section 3730 of title 31, United States Code, is amended to read as 
follows: 
"§ 3730. Civil actions for false claims 
"(a) RESPONSIBIUTIES OF THE ATTORNEY GENERAL.—The Attorney 
General diligently shall investigate a violation under section 3729. If 
the Attorney General finds that a person has violated or is violating 
section 3729, the Attorney General may bring a civil action under 
this section against the person. 
"(b) ACTIONS BY PRIVATE PERSONS.—(1) A person may bring a civil 
action for a violation of section 3729 for the person and for the 
United States Government. The action shall be brought in the name 
of the Government. The action may be dismissed only if the court 
and the Attorney General give written consent to the dismissal and 
their reasons for consenting. 
"(2) A copy of the complaint and written disclosure of substan-
tially all material evidence and information the person possesses 
shall be served on the Government pursuant to Rule 4(dX4) of the 
28 use app. 
Federal Rules of Civil Procedure. The complaint shall be filed in 
camera, shall remain under seal for at least 60 days, and shall not 
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fe^'.i-j. 
PUBLIC LAW 99-562-OCT. 27, 1986 
100 STAT. 3155 
be served on the defendant until the court so orders. The Grovern-
ment may elect to intervene and proceed with the action within 60 
days after it receives both the complaint and the material evidence 
and information. 
"(3) The Grovemment may, for good cause shown, move the court 
for extensions of the time during which the complaint remains 
under seal under paragraph (2). Any such motions may be supported 
by affidavits or other submissions in camera. The defendant shall 
not be required to respond to any complaint filed under this section 
until 20 days after the complaint is unsealed and served upon 
the defendant pursuant to Rule 4 of the Federal Rules of Civil 
Procedure. 
28 USC app. 
"(4) Before the expiration of the 60-day period or any extensions 
obtained under paragraph (3), the Government shall— 
"(A) proceed with the action, in which case the action shall be 
conducted by the Government; or 
"(B) notify the court that it declines to take over the action, in 
which case the person bringing the action shall have the right 
to conduct the action. 
"(5) When a person brings an action under this subsection, no 
person other than the Government may intervene or bring a related 
action based on the facts underlying the pending action. 
"(c) RIGHTS OF THE PARTIES TO QUI TAM ACTIONS.—(1) If 
the 
Government proceeds with the action, it shall have the primary 
responsibility for prosecuting the action, and shall not be bound by 
an act of the person bringing the action. Such person shall have the 
right to continue as a party to the action, subject to the limitations 
set forth in paragraph (2). 
"(2XA) The Government may dismiss the action notwithstanding 
the objections of the person initiating the action if the person has 
been notified by the Government of the filing of the motion and the 
court has provided the person with an opportunity for a hearing on 
the motion. 
"(B) The Government may settle the action with the defendant 
notwithstanding the objections of the person initiating the action if 
the court determines, after a hearing, that the proposed settlement 
is fair, adequate, and reasonable under all the circumstances. Upon 
a showing of good cause, such hearing may be held in camera. 
"(C) Upon a showing by the Government that unrestricted partici-
pation during the course of the litigation by the person initiating the 
action would interfere with or unduly delay the Government's 
prosecution of the case, or would be repetitious, irrelevant, or for 
purposes of harassment, the court may, in its discretion, impose 
limitations on the person's participation, such as— 
"(i) limiting the number of witnesses the person may call; 
"(ii) limiting the length of the testimony of such witnesses; 
"(iii) limiting the person's cross-examination of witnesses; or 
"(iv) otherwise limiting the participation by the person in the 
litigation. 
"(D) Upon a showing by the defendant that unrestricted participa-
tion during the course of the litigation by the person initiating the 
action would be for purposes of harassment or would cause the 
defendant undue burden or unnecessary expense, the court may 
limit the participation by the person in the litigation. 
"(3) If the Government elects not to proceed with the action, the 
person who initiated the action shall have the right to conduct the 
action. If the Government so requests, it shall be served with copies 
100 STAT. 3156 
PUBLIC LAW 99-562—OCT. 27, 1986 
of all pleadings filed in the action and shall be supplied with copies 
of all deposition transcripts (at the Government's expense). When a 
person proceeds with the action, the court, without limiting the 
status and rights of the person initiating the action, may neverthe-
less permit the Government to intervene at a later date upon a 
showing of good cause. 
"(4) Whether or not the Government proceeds with action, upon a 
showing by the Government that certain actions of discovery by the 
person initiating the action would interfere with the Government's 
investigation or prosecution of a criminal or civil matter arising out 
of the same facts, the court may stay such discovery for a period of 
i
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not more than 60 days. Such a showing shall be conducted in 
camera. The court may extend the 60-day period upon a further 
showing in camera that the Government has pursued the criminal 
or civil investigation or proceedings with reasonable diligence and 
any proposed discovery in the civil action will interfere with the 
ongoing criminal or civil investigation or proceedings. 
"(5) Notwithstanding subsection Ot)), the Government may elect to 
pursue its claim through any alternate remedy available to the 
Government, including any administrative proceeding to determine 
a civil money penalty. If any such alternate remedy is pursued in 
another proceeding, the person initiating the action shall have the 
same rights in such proceeding as such person would have had if the 
action had continued under this section. Any finding of fact or 
conclusion of law made in such other proceeding that has become 
final shall be conclusive on all parties to an action under this 
section. For purposes of the preceding sentence, a finding or conclu-
sion is final if it has been finally determined on appeal to the 
appropriate court of the United States, if all time for filing such an 
appeal with respect to the finding or conclusion has expired, or if 
the finding or conclusion is not subject to judicial review. 
"(d) AWARD TO QUI TAM PLAINTIFF.—(1) If the Government pro-
ceeds with an action brought by a person under subsection Ot)), such 
person shall, subject to the second sentence of this paragraph, 
receive at least 15 percent but not more than 25 percent of the 
proceeds of the action or settlement of the claim, depending upon 
the extent to which the person substantially contributed to the 
prosecution of the action. Where the action is one which the court 
finds to be based primarily on disclosures of specific information 
(other than information provided by the person bringing the action) 
relating to allegations or transactions in a criminal, civil, or 
administrative hearing, in a congressional, administrative, or 
Government Accounting Office report, hearing, audit, or investiga-
tion, or from the news media, the court may award such sums as it 
considers appropriate, but in no case more than 10 percent of the 
proceeds, taking into account the significance of the information 
and the role of the person bringing the action in advancing the case 
to litigation. Any payment to a person under the first or second 
sentence of this paragraph shall be made from the proceeds. Any 
such person shall also receive an amount for reasonable expenses 
which the court finds to have been necessarily incurred, plus reason-
able attorneys' fees and costs. All such expenses, fees, and costs shall 
be awarded against the defendant. 
"(2) If the Government does not proceed with an action under this 
section, the person bringing the action or settling the claim shall 
receive an amount which the court decides is reasonable for collect-
ing the civil penalty and damages. The amount shall be not less 
••3 -'.-^a-r'->•*'.'i 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3157 
than 25 percent and not more than 30 percent of the proceeds of the 
action or settlement and shall be paid out of such proceeds. Such 
person shall also receive an amount for reasonable expenses which 
the court finds to have been necessarily incurred, plus reasonable 
attorneys' fees and costs. All such expenses, fees, and costs shall be 
awarded against the defendant. 
"(3) If the Government does not proceed with the action and the 
person bringing the action conducts the action, the court may award 
to the defendant its reasonable attorneys' fees and expenses if the 
defendant prevails in the action and the court finds that the claim of 
the person bringing the actions was clearly frivolous, clearly vexa-
tious, or brought primarily for purposes of harassment. 
"(e) CERTAIN ACTIONS BARRED.—(1) No court shall have jurisdic- Armed Forces. 
tion over an action brought by a former or present member of the 
armed forces under subsection (b) of this section against a member 
of the armed forces arising out of such person's service in the armed 
forces. 
"(2XA) No court shall have jurisdiction over an action brought 
under subsection (b) against a Member of Congress, a member of the 
judiciary, or a senior executive branch official if the action is based 
on evidence or information known to the Government when the 
action was brought. 
"(B) For purposes of this paragraph, 'senior executive branch 
official' means any officer or employee listed in section 201(f) of the 
Ethics in Government Act of 1978 (5 U.S.C. App.). 
"(3) In no event may a person bring an action under subsection (b) 
which is based upon allegations or transactions which are the 
subject of a civil suit or an administrative civil money penalty 
proceeding in which the Government is already a party. 
"(4XA) No court shall have jurisdiction over an action under this 
section based upon the public disclosure of allegations or trans-
actions in a criminal, civil, or administrative hearing, in a congres-
sional, administrative, or Government Accounting Office report, 
hearing, audit, or investigation, or from the news media, unless the 
action is brought by the Attorney General or the person bringing 
the action is an original source of the information. 
"(B) For purposes of this paragraph, 'original source' means an 
individual who has direct and independent knowledge of the 
information on which the allegations are based and has voluntarily 
provided the information to the Government before filing an action 
under this section which is based on the information. 
"(f) 
GOVERNMENT NOT LIABLE FOR CERTAIN EXPENSES.—The 
Government is not liable for expenses which a person incurs in 
bringing an action under this section. 
. 
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"(g) FEES AND EXPENSES TO PREVAILING DEFENDANT.—In civil 
actions brought under this section by the United States, the provi-
sions of section 2412(d) of title 28 shall apply.". 
SEC. 4. ENTITLEMENT TO RELIEF FOR DISCRIMINATION BY EMPLOYERS 
AGAINST EMPLOYEES WHO REPORT VIOLATIONS. 
Section 3730 of title 31, United States Code, as amended by section 
3 of this Act, is further amended by adding at the end the following 
new subsection: 
"(h) Any employee who is discharged, demoted, suspended, 
threatened, harassed, or in any other manner discriminated against 
in the terms and conditions of employment by his or her employer 
because of lawful acts done by the employee on behalf of the 
71-194 0 - 89 - 9 : QL. 3 PartA 
100 STAT. 3158 
PUBLIC LAW 99-562—OCT. 27, 1986 
employee or others in furtherance of an action under this section, 
including investigation for, initiation of, testimony for, or assistance 
in an action filed or to be filed under this section, shall be entitled to 
all relief necessary to make the employee whole. Such relief shall 
include reinstatement with the same seniority status such employee 
would have had but for the discrimination, 2 times the amount of 
back pay, interest on the back pay, and compensation for any special 
damages sustained as a result of the discrimination, including litiga-
tion costs and reasonable attorneys* fees. An employee may bring an 
action in the appropriate district court of the United States for the 
relief provided in this subsection.". 
H*oigV 3 
SEC. 5. FALSE CLAIMS PROCEDURE. 
Section 3731 of title 31, United States Code, is amended by strik-
ing subsection (b) and inserting the following: 
"(b) A civil action under section 3730 may not be brought— 
"(1) more than 6 years after the date on which the violation of 
section 3729 is committed, or 
"(2) more than 3 years after the date when facts material to 
the right of action are known or reasonably should have been 
known by the official of the United States charged with respon-
sibility to act in the circumstances, but in no event more than 
10 years after the date on which the violation is committed, 
whichever occurs last. 
"(c) In any action brought under section 3730, the United States 
shall be required to prove all essential elements of the cause of 
action, including damages, by a preponderance of the evidence. 
"(d) Notwithstanding any other provision of law, the Federal 
28 use app. 
Rules of Criminal Procedure, or the Federal Rules of Evidence, a 
final judgment rendered in favor of the United States in any 
criminal proceeding charging fraud or false statements, whether 
upon a verdict after trial or upon a plea of guilty or nolo contendere, 
shall estop the defendant from denying the essential elements of the 
offense in any action which involves the same transaction as in the 
criminal proceeding and which is brought under subsection (a) or (b) 
of section 3730.". 
SEC. 6. FALSE CLAIMS JURISDICTION; CIVIL INVESTIGATIVE DEMANDS. 
(a) IN GENERAL.—Subchapter III of chapter 37 of title 31, United 
31 use 3721 
States Code, is amended by adding at the end the following new 
et seq- 
sections: 
31 use 3732. 
"§3732. False claims jurisdiction 
"(a) ACTIONS UNDER SECTION 3730.—Any action under section 
3730 may be brought in any judicial district in which the defendant 
or, in the case of multiple defendants, any one defendant can be 
found, resides, transacts business, or in which any act proscribed by 
section 3729 occurred. A summons as required by the Federal Rules 
of Civil Procedure shall be issued by the appropriate district court 
and served at any place within or outside the United States. 
"(b) CLAIMS UNDER STATE LAW.—The district courts shall have 
jur^iction over any action brought under the laws of any State for 
the recovery of funds paid by a State or local government if the 
action arises from the same transaction or occurrence as an action 
brought under section 3730. 
§nj o *5apn ? - 
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s 
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PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3159 
'§ 3733. Civil investigative demands 
31 use 3733. 
"(a) IN GENERAL.— 
"(1) ISSUANCE AND SERVICE.—Whenever the Attorney General 
has reason to believe that any person may be in possession, 
custody, or control of any documentary material or information 
relevant to a false claims law investigation, the Attorney Gen-
eral may, before commencing a civil proceeding under section 
3730 or other false claims law, issue in writing and cause to be 
served upon such person, a civil investigative demand requiring 
such person— 
"(A) to produce such documentary material for inspection 
, 
and copying, 
"(B) to answer in writing written interrogatories with 
respect to such documentary material or information, 
"(C) to give oral testimony concerning such documentary 
material or information, or 
"(D) to furnish any combination of such material, an-
swers, or testimony. 
The Attorney General may not delegate the authority to issue 
civil investigative demands under this subsection. Whenever a 
civil investigative demand is an express demand for any product 
of discovery, the Attorney General, the Deputy Attorney Gen-
eral, or an Assistant Attorney General shall cause to be served, 
in any manner authorized by this section, a copy of such 
demand upon the person from whom the discovery was obtained 
and shall notify the person to whom such demand is issued of 
the date on which such copy was served. 
"(2) CONTENTS AND DEADUNES.— 
"(A) Each civil investigative demand issued under para-
graph (1) shall state the nature of the conduct constituting 
./• 
the alleged violation of a false claims law which is under 
investigation, and the applicable provision of law alleged to 
be violated. 
"(B) If such demand is for the production of documentary 
material, the demand shall— 
"(i) describe each class of documentary material to be 
produced with such definiteness and certainty as to 
permit such material to be fairly identified; 
.« 
"(ii) prescribe a return date for each such class which 
will provide a reasonable period of time within which 
the material so demanded may be assembled and made 
available for inspection and copying; and 
"(iii) identify the false claims law investigator to 
whom such material shall be made available. 
"(C) If such demand is for answers to written interrog-
, [-„• . atories, the demand shall— 
"(i) set forth with specificity the written interrog- 
» i, . :v 
atories to be answered; 
"(ii) prescribe dates at which time answers to written 
interrogatories shall be submitted; and 
"(iii) identify the false claims law investigator to 
whom such answers shall be submitted. 
"(D) If such demand is for the giving of oral testimony, 
the demand shall— 
"(i) prescribe a date, time, and place at which oral 
testimony shall be commenced; 
100 STAT. 3160 
PUBLIC LAW 99-562—OCT. 27, 1986 
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"(ii) identify a false claims law investigator who shall 
conduct the examination and the custodian to whom 
the transcript of such examination shall be submitted; 
"(iii) specify that such attendance and testimony are 
necessary to the conduct of the investigation; 
"(iv) notify the person receiving the demand of the 
right to be accompanied by an attorney and any other 
representative; and 
"(v) describe the general purpose for which the 
demand is being issued and the general nature of the 
. ., 
testimony, including the primary areas of inquiry, 
which will be taken pursuant to the demand. 
... 
"(E) Any civil investigative demand issued under this 
section which is an express demand for any product of 
. ^^, 
discovery shall not be returned or returnable until 20 days 
'^•'" 
after a copy of such demand has been served upon the 
person from whom the discovery was obtained. 
"(F) The date prescribed for the commencement of oral 
testimony pursuant to a civil investigative demand issued 
under this section shall be a date which is not less than 
seven days after the date on which demand is received, 
unless the Attorney General or an Assistant Attorney Gen-
eral designated by the Attorney General determines that 
exceptional circumstances are present which warrant the 
commencement of such testimony within a lesser period of 
time. 
"(G) The Attorney General shall not authorize the issu-
ance under this section of more than one civil investigative 
demand for oral testimony by the same person unless the 
person requests otherwise or unless the Attorney General, 
after investigation, notifies that person in writing that an 
additional demand for oral testimony is necessary. The 
Attorney General may not, notwithstanding section 510 of 
title 28, authorize the performance, by any other officer, 
employee, or agency, of any function vested in the Attorney 
General under this subparagraph. 
"(b) PROTECTED MATERIAL OR INFORMATION.— 
"(1) IN GENERAL.—A civil investigative demand issued under 
subsection (a) may not require the production of any documen-
tary material, the submission of any answers to written inter-
rogatories, or the giving of any oral testimony if such material, 
answers, or testimony would be protected from disclosure 
under— 
'^' 
"(A) the standards applicable to subpoenas or subpoenas 
duces tecum issued by a court of the United States to aid in 
': 
a grand jury investigation; or 
"(B) the standards applicable to discovery requests under 
28 use app. 
. • 
the Federal Rules of Civil Procedure, to the extent that the 
application of such standards to any such demand is appro-
'' 
priate and consistent with the provisions and purposes of 
this section. 
(.; 
"(2) EFFECT ON OTHER ORDERS, RULES, AND LAWS.—Any such 
demand which is an express demand for any product of discov-
'' ery supersedes any inconsistent order, rule, or provision of law 
(other than this section) preventing or restraining disclosure of 
if' such product of discovery to any person. Disclosure of any 
product of discovery pursuant to any such express demand does 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3161 
not constitute a waiver of any right or privilege which the 
person making such disclosure may be entitled to invoke to 
i 
resist discovery of trial preparation materials. 
"(c) SERVICE; JURISDICTION.— 
t 
"(1) BY WHOM SERVED.—Any civil investigative demand issued 
under subsection (a) may be served by a false claims law inves-
tigator, or by a United States marshal or a deputy marshal, at 
any place within the territorial jurisdiction of any court of the 
^ 
United States. 
"(2) SERVICE IN FOREIGN COUNTRIES.—Any such demand or 
- 
any petition filed under subsection (j) may be served upon any 
person who is not found within the territorial jurisdiction of any 
' 
court of the United States in such manner as the Federal Rules 
of Civil Procedure prescribe for service in a foreign country. To 
28 USC app. 
the extent that the courts of the United States can assert 
District of 
jurisdiction over any such person consistent with due process, ^oi"™''!^-
^ 
the United States District Court for the District of Columbia 
''- 
shall have the same jurisdiction to take any action respecting 
compliance with this section by any such person that such court 
would have if such person were personally within the jurisdic-
tion of such court. 
"(d) SERVICE UPON LEGAL ENTITIES AND NATURAL PERSONS.— 
"(1) LEGAL ENTITIES.—Service of any civil investigative 
demand issued under subsection (a) or of any petition filed 
under subsection 0) may be made upon a partnership, corpora-
tion, association, or other legal entity by— 
"' 
' 
"(A) delivering an executed copy of such demand or 
petition to any partner, executive officer, managing agent, 
^, 
or general agent of the partnership, corporation, associa-
^ 
tion, or entity, or to any agent authorized by appointment 
J,., 
or by law to receive service of process on behalf of such 
partnership, corporation, association, or entity; 
,„.; J . 
"(B) delivering an executed copy of such demand or peti- 
^ 
, 
tion to the principal office or place of business of the 
.,^4j , 
partnership, corporation, association, or entity; or 
!. 
"(C) depositing an executed copy of such demand or peti- Mail. 
tion in the United States mails by registered or certified 
f
^ 
mail, with a return receipt requested, addressed to such 
2f 
partnership, corporation, association, or entity at its prin-
cipal office or place of business. 
"(2) NATURAL PERSONS.—Service of any such demand or peti-
tion may be made upon any natural person by— 
"(A) delivering an executed copy of such demand or 
petition to the person; or 
"(B) depositing an executed copy of such demand or Mail. 
petition in the United States mails by registered or certified 
mail, with a return receipt requested, addressed to the 
person at the person's residence or principal office or place 
of business. 
"(e) PROOF OF SERVICE.—A verified return by the individual serv-
ing any civil investigative demand issued under subsection (a) or any 
petition filed under subsection (j) setting forth the manner of such 
service shall be proof of such service. In the case of service by Mail, 
registered or certified mail, such return shall be accompanied by the 
return post office receipt of delivery of such demand. 
"(f) DOCUMENTARY MATERIAL.— 
100 STAT. 3162 
PUBLIC LAW 99-562—OCT. 27, 1986 
Contracts. 
Naturalized 
persons. 
Records. 
"(1) SWORN CERTIFICATES.—The production of documentary 
IS s material in response to a civil investigative demand served 
under this section shall be made under a sworn certificate, in 
such form as the demand designates, by— 
"(A) in the ceise of a natural person, the person to whom 
the demand is directed, or 
:,>- 
"(B) in the case of a person other than a natural person, a 
J i 
person having knowledge of the facts and circumstances 
relating to such production and authorized to act on behalf 
i. 
of such person. 
The certificate shall state that all of the documentary material 
required by the demand and in the possession, custody, or 
control of the person to whom the demand is directed has been 
produced and made available to the false claims law investiga-
tor identified in the demand. 
"(2) PRODUCTION OF MATERIALS.—Any person upon whom any 
civil investigative demand for the production of documentary 
material has been served under this section shall make such 
material available for inspection and copying to the false claims 
•; law investigator identified in such demand at the principal 
place of business of such person, or at such other place as the 
false claims law investigator and the person thereafter may 
agree and prescribe in writing, or as the court may direct under 
subsection (jXD. Such material shall be made so available on the 
return date specified in such demand, or on such later date as 
the false claims law investigator may prescribe in writing. Such 
^. 
person may, upon written agreement between the person and 
the false claims law investigator, substitute copies for originals 
of all or any part of such material. 
"(g) INTERROGATORIES.—Each interrogatory in a civil investigative 
demand served under this section shall be answered separately and 
fully in writing under oath and shall be submitted under a sworn 
certificate, in such form as the demand designates, by— 
"(1) in the case of a natural person, the person to whom the 
demand is directed, or 
; j^ 
"(2) in the case of a person other than a natural person, the 
person or persons responsible for answering each interrogatory. 
If any interrogatory is objected to, the reasons for the objection shall 
be stated in the certificate instead of an answer. The certificate shall 
state that all information required by the demand and in the 
possession, custody, control, or knowledge of the person to whom the 
demand is directed has been submitted. To the extent that any 
information is not furnished, the information shall be identified and 
reasons set forth with particularity regarding the reasons why the 
information was not furnished. 
"(h) ORAL EXAMINATIONS.— 
"(1) PROCEDURES.—The examination of any person pursuant 
to a civil investigative demand for oral testimony served under 
this section shall be taken before an officer authorized to admin-
ister oaths and affirmations by the laws of the United States or 
of the place where the examination is held. The officer before 
whom the testimony is to be taken shall put the witness on oath 
or affirmation and shall, personally or by someone acting under 
the direction of the officer and in the officer's presence, record 
the testimony of the witness. The testimony shall be taken 
stenographically and shall be transcribed. When the testimony 
is fully transcribed, the officer before whom the testimony is 
ei. 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3163 
taken shall promptly transmit a copy of the transcript of the 
DS : 
testimony to the custodian. This subsection shall not preclude 
the taking of testimony by any means authorized by, and in a 
manner consistent with, the Federal Rules of Civil Procedure. 
28 use app. 
"(2) PERSONS PRESENT.—The false claims law investigator 
conducting the examination shall exclude from the place where 
the examination is held all persons except the person giving the 
testimony, the attorney for and any other representative of the 
person giving the testimony, the attorney for the Government, 
any person who may be agreed upon by the attorney for the 
Government and the person giving the testimony, the officer 
before whom the testimony is to be taken, and any stenographer 
taking such testimony. 
"(3) WHERE TESTIMONY TAKEN.—The oral testimony of any 
person taken pursuant to a civil investigative demand served 
under this section shall be taken in the judicial district of the 
United States within which such person resides, is found, or 
.m^rjH-
transacts business, or in such other place as may be agreed 
upon by the false claims law investigator conducting the exam-
ination and such person. 
"(4) TRANSCRIPT OF TESTIMONY.—When the testimony is fully 
transcribed, the false claims law investigator or the officer 
before whom the testimony is taken shall afford the witness, 
who may be accompanied by counsel, a reasonable opportunity 
to examine and read the transcript, unless such examination 
and reading are waived by the witness. Any changes in form or 
substance which the witness desires to make shall be entered 
and identified upon the transcript by the officer or the false 
claims law investigator, with a statement of the reasons given 
by the witness for making such changes. The transcript shall 
then be signed by the witness, unless the witness in writing 
waives the signing, is ill, cannot be found, or refuses to sign. If Records. 
the transcript is not signed by the witness within 30 days after 
being afforded a reasonable opportunity to examine it, the 
officer or the false claims law investigator shall sign it and state 
on the record the fact of the waiver, illness, absence of the 
witness, or the refusal to sign, together with the reasons, if any, 
given therefor. 
"(5) CERTIFICATION AND DEUVERY TO CUSTODIAN.—The officer 
Mail, PI^^*! 
before whom the testimony is taken shall certify on the tran-
script that the witness was sworn by the officer and that the 
transcript is a true record of the testimony given by the witness, 
and the officer or false claims law investigator shall promptly 
deliver the transcript, or send the transcript by registered or 
certified mail, to the custodian. 
"(6) FURNISHING OR INSPECTION OF TRANSCRIPT BY WITNESS.— 
Upon payment of reasonable charges therefor, the false claims 
law investigator shall furnish a copy of the transcript to the 
witness only, except that the Attorney General, the Deputy 
Attorney General, or an Assistant Attorney General may, for 
good cause, limit such witness to inspection of the official 
transcript of the witness' testimony. 
"(7) CONDUCT OF ORAL TESTIMONY.—(A) Any person compelled 
to appear for oral testimony under a civil investigative demand 
issued under subsection (a) may be accompanied, represented, 
and advised by counsel. Counsel may advise such person, in 
Classified 
confidence, with respect to any question asked of such person, 
information. 
100 STAT. 3164 
PUBLIC LAW 99-562—OCT. 27, 1986 
Records. 
18 use 6001. 
..Ar^rfmB. 
Regulations. 
Such person or counsel may object on the record to any ques-
tion, in whole or in part, and shall briefly state for the record 
the reason for the objection. An objection may be made, re-
ceived, and entered upon the record when it is claimed that 
such person is entitled to refuse to answer the question on the 
grounds of any constitutional or other legal right or privilege, 
including the privilege against self-incrimination. Such person 
may not otherwise object to or refuse to answer any question, 
and may not directly or through counsel otherwise interrupt the 
oral examination. If such person refuses to answer any question, 
a petition may be filed in the district court of the United States 
under subsection (jXD for an order compelling such person to 
answer such question. 
"(B) If such person refuses to answer any question on the 
grounds of the privilege against self-incrimination, the testi-
mony of such person may be compelled in accordance with the 
provisions of part V of title 18. 
"(8) WITNESS FEES AND ALLOWANCES.—Any person appearing 
for oral testimony under a civil investigative demand issued 
under subsection (a) shall be entitled to the same fees and 
allowances which are paid to witnesses in the district courts of 
the United States, 
'(i) CUSTODIANS OF DOCUMENTS, ANSWERS, AND TRANSCRIPTS.— 
"(1) DESIGNATION.—The Attorney General shall designate a 
false claims law investigator to serve as custodian of documen-
tary material, answers to interrogatories, and transcripts of oral 
testimony received under this section, and shall designate such 
additional false claims law investigators as the Attorney Gen-
eral determines from time to time to be necessary to serve as 
deputies to the custodian. 
"(2) RESPONSIBILITY FOR MATERIALS; DISCLOSURE.—(A) A false 
claims law investigator who receives any documentary mate-
rial, answers to interrogatories, or transcripts of oral testimony 
under this section shall transmit them to the custodian. The 
custodian shall take physical possession of such material, an-
swers, or transcripts and shall be responsible for the use made 
of them and for the return of documentary material under 
paragraph (4). 
"(B) The custodian may cause the preparation of such copies 
of such documentary material, answers to interrogatories, or 
transcripts of oral testimony as may be required for official use 
by any false claims law investigator, or other officer or em-
ployee of the Department of Justice, who is authorized for such 
use under regulations which the Attorney General shall issue. 
Such material, answers, and transcripts may be used by any 
such authorized false claims law investigator or other officer or 
employee in connection with the taking of oral testimony under 
this section. 
"(C) Except as otherwise provided in this subsection, no docu-
mentary material, answers to interrogatories, or transcripts of 
oral testimony, or copies thereof, while in the possession of the 
custodian, shall be available for examination by any individual 
other than a false claims law investigator or other officer or 
employee of the Department of Justice authorized under 
subparagraph (B). The prohibition in the preceding sentence on 
the availability of material, answers, or transcripts shall not 
apply if consent is given by the person who produced such 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3165 
material, answers, or transcripts, or, in the case of any product 
of discovery produced pursuant to an express demand for such 
material, consent is given by the person from whom the discov-
ery was obtained. Nothing in this subparagraph is intended to 
prevent disclosure to the Congress, including any committee or 
subcommittee of the Congress, or to any other agency of the 
United States for use by such agency in furtherance of its 
statutory responsibilities. Disclosure of information to any such 
other agency shall be allowed only upon application, made by 
the Attorney General to a United States district court, showing 
substantial need for the use of the information by such agency 
in furtherance of its statutory responsibilities. 
"(D) While in the possession of the custodian and under such 
reasonable terms and conditions as the Attorney General shall 
prescribe— 
"(i) documentary material and answers to interrogatories 
shall be available for examination by the person who pro-
duced such material or answers, or by a representative of 
that person authorized by that person to examine such 
material and answers; and 
"(ii) transcripts of oral testimony shall be available for 
examination by the person who produced such testimony, 
or by a representative of that person authorized by that 
person to examine such transcripts. 
"(3) USE OF MATERIAL, ANSWERS, OR TRANSCRIPTS IN OTHER 
PROCEEDINGS.—Whenever any attorney of the Department of 
Justice has been designated to appear before any court, grand 
jury, or Federal agency in any case or proceeding, the custodian 
of any documentary material, answers to interrogatories, or 
transcripts of oral testimony received under this section may 
deliver to such attorney such material, answers, or transcripts 
for official use in connection with any such case or proceeding 
as such attorney determines to be required. Upon the comple-
tion of any such case or proceeding, such attorney shall return 
to the custodian any such material, answers, or transcripts so 
delivered which have not passed into the control of such court, 
grand jury, or agency through introduction into the record of 
such case or proceeding. 
"(4) CONDITIONS FOR RETURN OF MATERIAL.—If any documen-
tary material has been produced by any person in the course of 
any false claims law investigation pursuant to a civil investiga-
tive demand under this section, and— 
"(A) any case or proceeding before the court or grand jury 
arising out of such investigation, or any proceeding before 
any Federal agency involving such material, has been com-
pleted, or 
;, 
"(B) no case or proceeding in which such material may be 
used has been commenced within a reasonable time after 
completion of the examination and analysis of all documen-
tary material and other information assembled in the 
course of such investigation, 
the custodian shall, upon written request of the person who 
produced such material, return to such person any such mate-
rial (other than copies furnished to the false claims law inves-
tigator under subsection (f)(2) or made for the Department of 
Justice under paragraph (2)(B)) which has not passed into the 
100 STAT. 3166 
PUBLIC LAW 99-562—OCT. 27, 1986 
control of any court, grand jury, or agency through introduction 
into the record of such case or proceeding. 
"(5) APPOINTMENT OF SUCCESSOR CUSTODIANS.—In the event of 
the death, disability, or separation from service in the Depart-
ment of Justice of the custodian of any documentary material, 
answers to interrogatories, or transcripts of oral testimony 
produced pursuant to a civil investigative demand under this 
section, or in the event of the official relief of such custodian 
from responsibility for the custody and control of such material, 
answers, or transcripts, the Attorney General shall promptly— 
^
^
. 
"(A) designate another false claims law investigator to 
serve as custodian of such material, answers, or transcripts, 
j|^.j| 
"(B) transmit in writing to the person who produced such 
material, answers, or testimony notice of the identity and 
address of the successor so designated. 
Any person who is designated to be a successor under this 
paragraph shall have, with regard to such material, answers, or 
transcripts, the same duties and responsibilities as were im-
posed by this section upon that person's predecessor in office, 
except that the successor shall not be held responsible for any 
default or dereliction which occurred before that designation, 
"(j) JUDICIAL PROCEEDINGS.— 
"(1) PETITION FOR ENFORCEMENT.—Whenever any person fails 
to comply with any civil investigative demand issued under 
subsection (a), or whenever satisfactory copying or reproduction 
of any material requested in such demand cannot be done and 
such person refuses to surrender such material, the Attorney 
General may file, in the district court of the United States for 
any judicial district in which such person resides, is found, or 
transacts business, and serve upon such person a petition for an 
order of such court for the enforcement of the civil investigative 
demand. 
"(2) 
PETITION TO MODIFY OR SET ASIDE DEMAND.—(A) 
Any 
person who has received a civil investigative demand issued 
under subsection (a) may file, in the district court of the United 
States for the judicial district within which such person resides, 
is found, or transacts business, and serve upon the false claims 
law investigator identified in such demand a petition for an 
order of the court to modify or set £iside such demand. In the 
C£ise of a petition addressed to an express demand for any 
product of discovery, a petition to modify or set aside such 
demand may be brought only in the district court of the United 
States for the judicial district in which the proceeding in which 
such discovery was obtained is or was l£ist pending. Any petition 
under this subparagraph must be filed— 
"(i) within 20 days after the date of service of the civil 
ort .
< - investigative demand, or at any time before the return date 
specified in the demand, whichever date is earlier, or 
"(ii) within such longer period as may be prescribed in 
wi,! 
writing by any false claims law investigator identified in 
the demand. 
"(B) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (A), and 
may be based upon any failure of the demand to comply with 
the provisions of this section or upon any constitutional or other 
t? legal right or privilege of such person. During the pendency of 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3167 
the petition in the court, the court may stay, as it deems proper, 
the running of the time allowed for compliance with the 
demand, in whole or in part, except that the person filing the 
petition shall comply with any portions of the demand not 
sought to be modified or set aside, 
"(3) PETITION TO MODIFY OR SET ASIDE DEMAND FOR PRODUCT OF 
DISCOVERY.—(A) In the case of any civil investigative demand 
issued under subsection (a) which is an express demand for any 
product of discovery, the person from whom such discovery was 
*
?
•
' • ^ .^^'' -
obtained may file, in the district court of the United States for 
the judicial district in which the proceeding in which such 
discovery was obtained is or was last pending, and serve upon 
any false claims law investigator identified in the demand and 
upon the recipient of the demand, a petition for an order of such 
court to modify or set aside those portions of the demand 
requiring production of any such product of discovery. Any 
petition under this subparagraph must be filed— 
"(i) within 20 days after the date of service of the civil 
investigative demand, or at any time before the return date 
specified in the demand, whichever date is earlier, or 
"(ii) within such longer period as may be prescribed in 
writing by any false claims law investigator identified in 
the demand. 
"(B) The petition shall specify each ground upon which the 
petitioner relies in seeking relief under subparagraph (A), and 
may be based upon any failure of the portions of the demand 
from which relief is sought to comply with the provisions of this 
section, or upon any constitutional or other legal right or 
privilege of the petitioner. During the pendency of the petition, 
the court may stay, as it deems proper, compliance with the 
demand and the running of the time allowed for compliance 
with the demand. 
"(4) 
PETITION 
TO REQUIRE PERFORMANCE 
BY CUSTODIAN OF 
DUTIES.—At any time during which any custodian is in custody 
or control of any documentary material or answers to interrog-
atories produced, or transcripts of oral testimony given, by any 
person in compliance with any civil investigative demand issued 
under subsection (a), such person, and in the case of an express 
demand for any product of discovery, the person from whom 
such discovery was obtained, may file, in the district court of 
the United States for the judicial district within which the office 
of such custodian is situated, and serve upon such custodian, a 
petition for an order of such court to require the performance 
by the custodian of any duty imposed upon the custodian by this 
section. 
"(5) JURISDICTION.—Whenever any petition is filed in any 
district court of the United States under this subsection, such 
court shall have jurisdiction to hear and determine the matter 
so presented, and to enter such order or orders as may be 
required to carry out the provisions of this section. Any final 
order so entered shall be subject to appeal under section 1291 of 
title 28. Any disobedience of any final order entered under this 
section by any court shall be punished as a contempt of the 
court. 
"(6) APPUCABIUTY OF FEDERAL RULES OF CIVIL PROCEDURE.— 
The Federal Rules of Civil Procedure shall apply to any petition 
28 use app. 
100 STAT. 3168 
PUBLIC LAW 99-562—OCT. 27, 1986 
under this subsection, to the extent that such rules are not 
• a. 
inconsistent with the provisions of this section. 
"(k) DISCLOSURE E!XEMPTION.—Any documentary material, answers 
to written interrogatories, or oral testimony provided under any 
civil investigative demand issued under subsection (a) shall be 
exempt from disclosure under section 552 of title 5. 
/ 
J "(1) DEFINITIONS.—For purposes of this section— 
"(1) the term 'false claims law' means— 
Ante, p. 3153. 
"(A) this section and sections 3729 through 3732; and 
"(B) any Act of Congress enacted after the date of the 
enactment of this section which prohibits, or makes available 
J 
to the United States in any court of 
the United States any civil 
remedy with respect to, any false claim against, bribery of, or 
corruption of any officer or employee of the United States; 
"(2) the term 'false claims law investigation' means any in-
quiry conducted by any false claims law investigator for the 
purpose of ascertaining whether any person is or has been 
I 
engaged in any violation of a false claims law; 
^ 
"(3) the term 'false claims law investigator' means any attor-
ney or investigator employed by the Department of Justice who 
is charged with the duty of enforcing or carrying into effect any 
false claims law, or any officer or employee of the United States 
acting under the direction and supervision of such attorney or 
i 
investigator in connection with a false claims law investigation; 
I 
"(4) the term 'person' means any natural person, partnership, 
corporation, association, or other legal entity, including any 
•f 
State or political subdivision of a State; 
1 
"(5) the term 'documentary material' includes the original or 
any copy of any book, record, report, memorandum, paper, 
communication, tabulation, chart, or other document, or data 
compilations stored in or accessible through computer or other 
information retrieval systems, together with instructions and 
all other materials necessary to use or interpret such data 
compilations, and any product of discovery; 
"(6) the term 'custodian' means the custodian, or any deputy 
custodian, designated by the Attorney General under subsection 
(iXl);and 
"(7) the term 'product of discovery' includes— 
"(A) the original or duplicate of any deposition, interrog-
atory, document, thing, result of the inspection of land or 
other property, examination, or admission, which is ob-
tained by any method of discovery in any judicial or 
administrative proceeding of an adversarial nature; 
"(B) any digest, analysis, selection, compilation, or deriva-
tion of any item listed in subparagraph (A); and 
"(C) any index or other manner of access to any item 
listed in subparagraph (A).", 
(b) CLERICAL AMENDMENT.—The table of contents for chapter 37 of 
title 31, United States Code, is amended by adding after the item 
relating to section 3731 the following: 
"3732. False claims jurisdiction. 
' 
. . . 
"3733. Civil investigative demands.". 
* J" ^r 
. 
. 
• 
PUBLIC LAW 99-562—OCT. 27, 1986 
100 STAT. 3169 
SEC. 7. CRIMINAL PENALTIES. 
n 
Section 287 of title 18, United States Code, is amended by striking 
"fined" and all that follows through "both" and inserting "impris-
oned not more than five years and shall be subject to a fine in the 
amount provided in this title". 
Approved October 27, 1986. 
'-*"«>;.«. 
LEGISLATIVE HISTORY—S. 1562 (H.R. 4827): 
HOUSE REPORTS: No. 99-660 accompanying H.R. 4827 (Comm. on the Judiciary). 
SENATE REPORTS: No. 99-345 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Aug. 11, considered and passed Senate. 
Sept. 9, H.R. 4827 considered and passed House; proceedings vacated and S. 
1562, amended, passed in lieu. 
Oct. 3, Senate concurred in House amendment with an amendment. 
Oct. 7, House concurred in Senate amendment.