[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 841 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 841

To amend chapter 37 of title 31, United States Code, relating to false 
                claims actions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               April 29 (legislative day, April 19), 1993

 Mr. Grassley introduced the following bill; which was read twice and 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend chapter 37 of title 31, United States Code, relating to false 
                claims actions, 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 
1993''.

SEC. 2. GOVERNMENT RIGHT TO DISMISS CERTAIN ACTIONS.

    Section 3730(b) of title 31, United States Code, is amended by 
adding at the end thereof the following new paragraph:
            ``(6)(A) No later than 60 days after the date of service 
        under paragraph (2), the Government may move to dismiss from 
        the action the qui tam relator if--
                    ``(i) all the necessary and specific material 
                allegations contained in such action were derived from 
                an open and active fraud investigation by the 
                Government; or
                    ``(ii) the person bringing the action learned of 
                the information that underlies the alleged violation of 
                section 3729 that is the basis of the action in the 
                course of the person's employment by the United States, 
                and none of the following has occurred:
                            ``(I) In a case in which the employing 
                        agency has an inspector general, such person, 
                        before bringing the action--
                                    ``(aa) disclosed in writing 
                                substantially all material evidence and 
                                information that relates to the alleged 
                                violation that the person possessed to 
                                such inspector general; and
                                    ``(bb) notified in writing the 
                                person's supervisor and the Attorney 
                                General of the disclosure under 
                                division (aa).
                            ``(II) In a case in which the employing 
                        agency does not have an inspector general, such 
                        person, before bringing the action--
                                    ``(aa) disclosed in writing 
                                substantially all material evidence and 
                                information that relates to the alleged 
                                violation that the person possessed, to 
                                the Attorney General; and
                                    ``(bb) notified in writing the 
                                person's supervisor of the disclosure 
                                under division (aa).
                            ``(III) Twelve months (and any period of 
                        extension as provided for under subparagraph 
                        (B)) have elapsed since the disclosure of 
                        information and notification under either 
                        subclause (I) or (II) were made and the 
                        Attorney General has not filed an action based 
                        on such information.
            ``(B) Prior to the expiration of the 12-month period 
        described under subparagraph (A)(ii)(III) and upon notice to 
        the person who has disclosed information and provided notice 
        under subparagraph (A)(ii) (I) or (II), the Attorney General 
        may file a motion seeking an extension of such 12-month period. 
        Such 12-month period may be extended by a court for not more 
        than an additional 12-month period upon a showing by the 
        Government that the additional period is necessary for the 
        Government to decide whether or not to file such action. Any 
        such motion may be filed in camera and may be supported by 
        affidavits or other submissions in camera.
            ``(C) For purposes of subparagraph (A), a person's 
        supervisor is the officer or employee who--
                    ``(i) is in a position of the next highest 
                classification to the position of such person;
                    ``(ii) has supervisory authority over such person; 
                and
                    ``(iii) such person believes is not culpable of the 
                violation upon which the action under this subsection 
                is brought by such person.
            ``(D) A motion to dismiss under this paragraph shall set 
        forth documentation of the allegations, evidence, and 
        information in support of the motion.
            ``(E) Any person bringing a civil action under paragraph 
        (1) shall be provided an opportunity to contest a motion to 
        dismiss under this paragraph. The court may restrict access to 
        the evidentiary materials filed in support of the motion to 
        dismiss, as the interests of justice require. A motion to 
        dismiss and papers filed in support or opposition of such 
        motion shall not be--
                    ``(i) made public without the prior written consent 
                of the person bringing the civil action; and
                    ``(ii) subject to discovery by the defendant.
            ``(F) If the motion to dismiss under this paragraph is 
        granted, the matter shall remain under seal.
            ``(G) No later than 6 months after the date of the 
        enactment of this paragraph, and every 6 months thereafter, the 
        Department of Justice shall report to the Committee on the 
        Judiciary of the Senate and the Committee on the Judiciary of 
        the House of Representatives relating to--
                    ``(i) the cases in which the Department of Justice 
                has filed a motion to dismiss under this paragraph;
                    ``(ii) the outcome of such motions; and
                    ``(iii) the status of false claims civil actions in 
                which such motions were filed.''.

SEC. 3. PROVISIONS RELATING TO ACTIONS BARRED AND QUI TAM AWARDS.

    Section 3730 of title 31, United States Code, is further amended--
            (1) in subsection (b)(1) by adding at the end thereof ``No 
        claim for a violation of section 3729 may be waived or released 
        by any action of any person, except insofar as such action is 
        part of a court approved settlement of a false claim civil 
        action brought under this section.'';
            (2) in subsection (d)--
                    (A) in the first sentence by striking out ``, 
                subject to the second sentence of this paragraph,''; 
                and
                    (B) by striking out the second sentence; and
            (3) in subsection (e) by striking out paragraph (4).

SEC. 4. WHISTLEBLOWER PROTECTION.

    Section 3730(h) of title 31, United States Code, is amended--
            (1) by striking out ``(h)'' and inserting in lieu thereof 
        ``(h) Whistleblower Protection.--(1)''; and
            (2) by adding at the end thereof the following new 
        paragraphs:
            ``(2)(A) In any action brought by an employee under 
        paragraph (1), the employee shall be entitled to relief if, 
        based upon a preponderance of the evidence, the employee 
        demonstrates that a lawful act described under paragraph (1) 
        was a contributing factor in the action by the employer against 
        the employee that is alleged in the complaint.
            ``(B) Notwithstanding the provisions of subparagraph (A), 
        such employee shall not be entitled to relief, if the employer 
        demonstrates by clear and convincing evidence that the employer 
        would have taken the same action against the employee in the 
        absence of such lawful act.''.

SEC. 5. DEFINITION OF PERSON.

    Section 3730 of title 31, United States Code, is further amended by 
inserting at the end thereof the following new subsection:
    ``(i) Definition.--For purposes of this section the term `person' 
means any natural person, partnership, corporation, association, or 
other legal entity including any State or political subdivision of a 
State.''.

SEC. 6. STATUTE OF LIMITATIONS.

    Section 3731(b) of title 31, United States Code, is amended to read 
as follows:
    ``(b)(1) A civil action under section 3730 may not be brought more 
than 6 years after the date on which the violation of section 3729 is 
committed.
    ``(2) For the purpose of computing the period described under 
paragraph (1), there shall be excluded all periods during which facts 
material to the right of action are not known and reasonably could not 
be known by the official of the United States with authority to act in 
the circumstances.''.

SEC. 7. AUTHORITY TO ISSUE INVESTIGATIVE DEMANDS.

    Section 3733 of title 31, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``or an Assistant Attorney General'' after 
                ``Attorney General'' each place it appears; and
                    (B) in the matter following subparagraph (D)--
                            (i) in the first sentence by inserting ``or 
                        an Assistant Attorney General'' after 
                        ``Attorney General''; and
                            (ii) in the second sentence by striking out 
                        ``, the Deputy Attorney General,'';
            (2) in subsection (a)(2)--
                    (A) in subparagraph (F) by striking out 
                ``designated by the Attorney General''; and
                    (B) in subparagraph (G) by inserting ``or an 
                Assistant Attorney General'' after ``Attorney General'' 
                each place it appears;
            (3) in subsection (h)(6) by striking out ``, the Deputy 
        Attorney General,'';
            (4) in subsection (i) by inserting ``or an Assistant 
        Attorney General'' after ``Attorney General'' each place it 
        appears; and
            (5) in subsection (l)(6) by inserting ``or an Assistant 
        Attorney General'' after ``Attorney General''.

SEC. 8. APPLICABILITY AND EFFECTIVE DATE.

    (a) In General.--(1) The amendments made by this Act shall take 
effect on the date of the enactment of this Act and shall apply to 
cases filed on or after the date of enactment of this Act.
    (2) The provisions of section 3730(b)(6)(A)(i) of title 31, United 
States Code (as added by section 2 of this Act), and section 3730 (d) 
and (e) of such title (as amended by section 3 (2) and (3) of this 
Act), shall apply to cases pending on the date of the enactment of this 
Act. In any case that is pending on the date of the enactment of this 
Act in which the Government has elected to proceed with the action 
under section 3730(b)(4) of title 31, United States Code, the 
Government may file a motion to dismiss a qui tam relator under section 
3730(b)(6)(A)(i) of such title (as added by section 2 of this Act), no 
later than 120 days after the date of the enactment of this Act.
    (b) Prior Laws.--(1) The amendments made by the False Claims 
Amendments Act of 1986 (Public Law 99-562) shall apply to cases filed 
on or after the date of the enactment of such Act, and to cases pending 
on such date that are still pending on the date of the enactment of 
this Act.
    (2) The amendments made by section 9 of the Major Fraud Act of 1988 
(Public Law 100-700) shall apply to cases filed on or after the date of 
the enactment of such Act, and to cases pending on such date that are 
still pending on the date of enactment of this Act.

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