[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2240 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2240

   To combat nursing home fraud and abuse, increase protections for 
 victims of telemarketing fraud, enhance safeguards for pension plans 
  and health care benefit programs, and enhance penalties for crimes 
                against seniors, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 24, 2002

 Mr. Leahy (for himself, Mr. Daschle, Mr. Torricelli, Mr. Kennedy, Mr. 
  Harkin, Mr. Bingaman, Mr. Feingold, and Mr. Johnson) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To combat nursing home fraud and abuse, increase protections for 
 victims of telemarketing fraud, enhance safeguards for pension plans 
  and health care benefit programs, and enhance penalties for crimes 
                against seniors, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Seniors Safety Act 
of 2002''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
               TITLE I--COMBATING CRIMES AGAINST SENIORS

Sec. 101. Enhanced sentencing penalties based on age of victim.
Sec. 102. Study and report on health care fraud sentences.
Sec. 103. Increased penalties for fraud resulting in serious injury or 
                            death.
Sec. 104. Safeguarding pension plans from fraud and theft. 
Sec. 105. Additional civil penalties for defrauding pension plans. 
Sec. 106. Punishing bribery and graft in connection with employee 
                            benefit plans.
                TITLE II--PREVENTING TELEMARKETING FRAUD

Sec. 201. Centralized complaint and consumer education service for 
                            victims of telemarketing fraud.
Sec. 202. Blocking of telemarketing scams.
                TITLE III--PREVENTING HEALTH CARE FRAUD

Sec. 301. Injunctive authority relating to false claims and illegal 
                            kickback schemes involving Federal health 
                            care programs.
Sec. 302. Authorized investigative demand procedures.
Sec. 303. Extending antifraud safeguards to the Federal employee health 
                            benefits program.
Sec. 304. Grand jury disclosure.
Sec. 305. Increasing the effectiveness of civil investigative demands 
                            in false claims investigations.
            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

Sec. 401. Short title.
Sec. 402. Nursing home resident protection.
        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

Sec. 501. Use of forfeited funds to pay restitution to crime victims 
                            and regulatory agencies.
Sec. 502. Victim restitution.
Sec. 503. Bankruptcy proceedings not used to shield illegal gains from 
                            false claims.
Sec. 504. Forfeiture for retirement offenses.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress makes the following findings:
            (1) The number of older Americans is rapidly growing in the 
        United States. According to the 2000 census, 21 percent of the 
        United States population is 55 years of age or older.
            (2) In 1997, 7 percent of victims of serious violent crime 
        were 50 years of age or older.
            (3) In 1997, 17.7 percent of murder victims were 55 years 
        of age or older.
            (4) According to the Department of Justice, persons 65 
        years of age and older experienced approximately 2,700,000 
        crimes a year between 1992 and 1997.
            (5) Older victims of violent crime are almost twice as 
        likely as younger victims to be raped, robbed, or assaulted at 
        or in their own homes.
            (6) Approximately half of all Americans who are 50 years of 
        age or older are afraid to walk alone at night in their own 
        neighborhoods.
            (7) Seniors over 50 years of age reportedly account for 37 
        percent of the estimated $40,000,000,000 in losses each year 
        due to telemarketing fraud.
            (8) A 1996 American Association of Retired Persons survey 
        of people 50 years of age and older showed that 57 percent were 
        likely to receive calls from telemarketers at least once a 
        week.
            (9) In 1998, Congress enacted legislation to provide for 
        increased penalties for telemarketing fraud that targets 
        seniors.
            (10) It has been estimated that--
                    (A) approximately 43 percent of persons turning 65 
                years of age can expect to spend some time in a long-
                term care facility; and
                    (B) approximately 20 percent can expect to spend 5 
                years or more in a such a facility.
            (11) In 1997, approximately $82,800,000,000 was spent on 
        nursing home care in the United States and over half of this 
        amount was spent by the Medicaid and Medicare programs.
            (12) Losses to fraud and abuse in health care reportedly 
        cost the United States an estimated $100,000,000,000 in 1996.
            (13) The Inspector General for the Department of Health and 
        Human Services has estimated that about $12,600,000,000 in 
        improper Medicare benefit payments, due to inadvertent mistake, 
        fraud, and abuse were made during fiscal year 1998.
            (14) Incidents of health care fraud and abuse remain common 
        despite awareness of the problem.
    (b) Purposes.--The purposes of this Act are to--
            (1) combat nursing home fraud and abuse;
            (2) enhance safeguards for pension plans and health care 
        programs;
            (3) develop strategies for preventing and punishing crimes 
        that target or otherwise disproportionately affect seniors by 
        collecting appropriate data--
                    (A) to measure the extent of crimes committed 
                against seniors; and
                    (B) to determine the extent of domestic and elder 
                abuse of seniors; and
            (4) prevent and deter criminal activity, such as 
        telemarketing fraud, that results in economic and physical harm 
        against seniors, and ensure appropriate restitution.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Crime.--The term ``crime'' means any criminal offense 
        under Federal or State law.
            (2) Nursing home.--The term ``nursing home'' means any 
        institution or residential care facility defined as such for 
        licensing purposes under State law, or if State law does not 
        employ the term nursing home, the equivalent term or terms as 
        determined by the Secretary of Health and Human Services, 
        pursuant to section 1908(e) of the Social Security Act (42 
        U.S.C. 1396g(e)).
            (3) Senior.--The term ``senior'' means an individual who is 
        more than 55 years of age.

               TITLE I--COMBATING CRIMES AGAINST SENIORS

SEC. 101. ENHANCED SENTENCING PENALTIES BASED ON AGE OF VICTIM.

    (a) Directive to the United States Sentencing Commission.--Pursuant 
to its authority under section 994(p) of title 28, United States Code, 
and in accordance with this section, the United States Sentencing 
Commission (referred to in this section as the ``Commission'') shall 
review and, if appropriate, amend section 3A1.1(a) of the Federal 
sentencing guidelines to include the age of a crime victim as one of 
the criteria for determining whether the application of a sentencing 
enhancement is appropriate.
    (b) Requirements.--In carrying out this section, the Commission 
shall--
            (1) ensure that the Federal sentencing guidelines and the 
        policy statements of the Commission reflect the serious 
        economic and physical harms associated with criminal activity 
        targeted at seniors due to their particular vulnerability;
            (2) consider providing increased penalties for persons 
        convicted of offenses in which the victim was a senior in 
        appropriate circumstances;
            (3) consult with individuals or groups representing 
        seniors, law enforcement agencies, victims organizations, and 
        the Federal judiciary as part of the review described in 
        subsection (a);
            (4) ensure reasonable consistency with other Federal 
        sentencing guidelines and directives;
            (5) account for any aggravating or mitigating circumstances 
        that may justify exceptions, including circumstances for which 
the Federal sentencing guidelines provide sentencing enhancements;
            (6) make any necessary conforming changes to the Federal 
        sentencing guidelines; and
            (7) ensure that the Federal sentencing guidelines 
        adequately meet the purposes of sentencing set forth in section 
        3553(a)(2) of title 18, United States Code.
    (c) Report.--Not later than December 31, 2002, the Commission shall 
submit to Congress a report on issues relating to the age of crime 
victims, which shall include--
            (1) an explanation of any changes to sentencing policy made 
        by the Commission under this section; and
            (2) any recommendations of the Commission for retention or 
        modification of penalty levels, including statutory penalty 
        levels, for offenses involving seniors.

SEC. 102. STUDY AND REPORT ON HEALTH CARE FRAUD SENTENCES.

    (a) Directive to the United States Sentencing Commission.--Pursuant 
to its authority under section 994(p) of title 28, United States Code, 
and in accordance with this section, the United States Sentencing 
Commission (referred to in this section as the ``Commission'') shall 
review and, if appropriate, amend the Federal sentencing guidelines and 
the policy statements of the Commission with respect to persons 
convicted of offenses involving fraud in connection with a health care 
benefit program (as defined in section 24(b) of title 18, United States 
Code).
    (b) Requirements.--In carrying out this section, the Commission 
shall--
            (1) ensure that the Federal sentencing guidelines and the 
        policy statements of the Commission reflect the serious harms 
        associated with health care fraud and the need for aggressive 
        and appropriate law enforcement action to prevent such fraud;
            (2) consider providing increased penalties for persons 
        convicted of health care fraud in appropriate circumstances;
            (3) consult with individuals or groups representing victims 
        of health care fraud, law enforcement agencies, the health care 
        industry, and the Federal judiciary as part of the review 
        described in subsection (a);
            (4) ensure reasonable consistency with other Federal 
        sentencing guidelines and directives;
            (5) account for any aggravating or mitigating circumstances 
        that might justify exceptions, including circumstances for 
        which the Federal sentencing guidelines provide sentencing 
        enhancements;
            (6) make any necessary conforming changes to the Federal 
        sentencing guidelines; and
            (7) ensure that the Federal sentencing guidelines 
        adequately meet the purposes of sentencing as set forth in 
        section 3553(a)(2) of title 18, United States Code.
    (c) Report.--Not later than December 31, 2002, the Commission shall 
submit to Congress a report on issues relating to offenses described in 
subsection (a), which shall include--
            (1) an explanation of any changes to sentencing policy made 
        by the Commission under this section; and
            (2) any recommendations of the Commission for retention or 
        modification of penalty levels, including statutory penalty 
        levels, for those offenses.

SEC. 103. INCREASED PENALTIES FOR FRAUD RESULTING IN SERIOUS INJURY OR 
              DEATH.

    Sections 1341 and 1343 of title 18, United States Code, are each 
amended by inserting before the last sentence the following: ``If the 
violation results in serious bodily injury (as defined in section 
1365), such person shall be fined under this title, imprisoned not more 
than 20 years, or both, and if the violation results in death, such 
person shall be fined under this title, imprisoned for any term of 
years or life, or both.''.

SEC. 104. SAFEGUARDING PENSION PLANS FROM FRAUD AND THEFT.

    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1348. Fraud in relation to retirement arrangements
    ``(a) Definition.--
            ``(1) Retirement arrangement.--In this section, the term 
        `retirement arrangement' means--
                    ``(A) any employee pension benefit plan subject to 
                any provision of title I of the Employee Retirement 
                Income Security Act of 1974;
                    ``(B) any qualified retirement plan within the 
                meaning of section 4974(c) of the Internal Revenue Code 
                of 1986;
                    ``(C) any medical savings account described in 
                section 220 of the Internal Revenue Code of 1986; or
                    ``(D) a fund established within the Thrift Savings 
                Fund by the Federal Retirement Thrift Investment Board 
                pursuant to subchapter III of chapter 84 of title 5.
            ``(2) Certain arrangements included.--The term `retirement 
        arrangement' shall include any arrangement that has been 
        represented to be an arrangement described in any subparagraph 
        of paragraph (1) (whether or not so described).
            ``(3) Exception for governmental plan.--Except as provided 
        in paragraph (1)(D), the term `retirement arrangement' shall 
        not include any governmental plan (as defined in section 3(32) 
        of title I of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(32))).
    ``(b) Prohibition and Penalties.--Whoever executes, or attempts to 
execute, a scheme or artifice--
            ``(1) to defraud any retirement arrangement or other person 
        in connection with the establishment or maintenance of a 
        retirement arrangement; or
            ``(2) to obtain, by means of false or fraudulent pretenses, 
        representations, or promises, any of the money or property 
        owned by, or under the custody or control of, any retirement 
        arrangement or other person in connection with the 
        establishment or maintenance of a retirement arrangement;
shall be fined under this title, imprisoned not more than 10 years, or 
both.
    ``(c) Enforcement.--
            ``(1) In general.--Subject to paragraph (2), the Attorney 
        General may investigate any violation of, and otherwise 
        enforce, this section.
            ``(2) Effect on other authority.--Nothing in this 
        subsection may be construed to preclude the Secretary of Labor 
        or the head of any other appropriate Federal agency from 
        investigating a violation of this section in relation to a 
        retirement arrangement subject to title I of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.) 
        or any other provision of Federal law.''.
    (b) Technical Amendment.--Section 24(a)(1) of title 18, United 
States Code, is amended by inserting ``1348,'' after ``1347,''.
    (c) Conforming Amendment.--The analysis for chapter 63 of title 18, 
United States Code, is amended by adding at the end the following:

``1348. Fraud in relation to retirement arrangements.''.

SEC. 105. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING PENSION PLANS.

    (a) In General.--
            (1) Action by attorney general.--Except as provided in 
        subsection (b)--
                    (A) the Attorney General may bring a civil action 
                in the appropriate district court of the United States 
                against any person who engages in conduct constituting 
                an offense under section 1348 of title 18, United 
                States Code, or conspiracy to violate such section 
                1348; and
                    (B) upon proof of such conduct by a preponderance 
                of the evidence, such person shall be subject to a 
                civil penalty in an amount equal to the greatest of--
                            (i) the amount of pecuniary gain to that 
                        person;
                            (ii) the amount of pecuniary loss sustained 
                        by the victim; or
                            (iii) not more than--
                                    (I) $50,000 for each such violation 
                                in the case of an individual; or
                                    (II) $100,000 for each such 
                                violation in the case of a person other 
                                than an individual.
            (2) No effect on other remedies.--The imposition of a civil 
        penalty under this subsection does not preclude any other 
        statutory, common law, or administrative remedy available by 
        law to the United States or any other person.
    (b) Exception.--No civil penalty may be imposed pursuant to 
subsection (a) with respect to conduct involving a retirement 
arrangement that--
            (1) is an employee pension benefit plan subject to title I 
        of the Employee Retirement Income Security Act of 1974; and
            (2) for which the civil penalties may be imposed under 
        section 502 of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1132).
    (c) Determination of Penalty Amount.--In determining the amount of 
the penalty under subsection (a), the district court may consider the 
effect of the penalty on the violator or other person's ability to--
            (1) restore all losses to the victims; or
            (2) provide other relief ordered in another civil or 
        criminal prosecution related to such conduct, including any 
        penalty or tax imposed on the violator or other person pursuant 
        to the Internal Revenue Code of 1986.

SEC. 106. PUNISHING BRIBERY AND GRAFT IN CONNECTION WITH EMPLOYEE 
              BENEFIT PLANS.

    (a) In General.--Section 1954 of title 18, United States Code, is 
amended to read as follows:
``Sec. 1954. Bribery and graft in connection with employee benefit 
              plans
    ``(a) Definitions.--In this section--
            ``(1) the term `employee benefit plan' means any employee 
        welfare benefit plan or employee pension benefit plan subject 
        to any provision of title I of the Employee Retirement Income 
        Security Act of 1974;
            ``(2) the terms `employee organization', `administrator', 
        and `employee benefit plan sponsor' mean any employee 
        organization, administrator, or plan sponsor, as defined in 
        title I of the Employment Retirement Income Security Act of 
        1974; and
            ``(3) the term `applicable person' means--
                    ``(A) an administrator, officer, trustee, 
                custodian, counsel, agent, or employee of any employee 
                benefit plan;
                    ``(B) an officer, counsel, agent, or employee of an 
                employer or an employer any of whose employees are 
                covered by such plan;
                    ``(C) an officer, counsel, agent, or employee of an 
                employee organization any of whose members are covered 
                by such plan;
                    ``(D) a person who, or an officer, counsel, agent, 
                or employee of an organization that, provides benefit 
                plan services to such plan; or
                    ``(E) a person with actual or apparent influence or 
                decisionmaking authority in regard to such plan.
    ``(b) Bribery and Graft.--Whoever--
            ``(1) being an applicable person, receives or agrees to 
        receive or solicits, any fee, kickback, commission, gift, loan, 
        money, or thing of value, personally or for any other person, 
        because of or with the intent to be corruptly influenced with 
        respect to any action, decision, or duty of that applicable 
        person relating to any question or matter concerning an 
        employee benefit plan;
            ``(2) directly or indirectly, gives or offers, or promises 
        to give or offer, any fee, kickback, commission, gift, loan, 
        money, or thing of value, to any applicable person, because of 
        or with the intent to be corruptly influenced with respect to 
        any action, decision, or duty of that applicable person 
        relating to any question or matter concerning an employee 
        benefit plan; or
            ``(3) attempts to give, accept, or receive any thing of 
        value with the intent to be corruptly influenced in violation 
        of this section;
shall be fined under this title, imprisoned not more than 5 years, or 
both.
    ``(c) Exceptions.--Nothing in this section may be construed to 
apply to any--
            ``(1) payment to, or acceptance by, any person of bona fide 
        salary, compensation, or other payments made for goods or 
        facilities actually furnished or for services actually 
        performed in the regular course of his duties as an applicable 
        person; or
            ``(2) payment to, or acceptance in good faith by, any 
        employee benefit plan sponsor, or person acting on behalf of 
        the sponsor, of anything of value relating to the decision or 
        action of the sponsor to establish, terminate, or modify the 
        governing instruments of an employee benefit plan in a manner 
        that does not violate--
                    ``(A) title I of the Employee Retirement Income 
                Security Act of 1974;
                    ``(B) any regulation or order promulgated under 
                title I of the Employee Retirement Income Security Act 
                of 1974; or
                    ``(C) any other provision of law governing the 
                plan.''.
    (b) Conforming Amendment.--The analysis for chapter 95 of title 18, 
United States Code, is amended by striking the item relating to section 
1954 and inserting the following:

``1954. Bribery and graft in connection with employee benefit plans.''.

                TITLE II--PREVENTING TELEMARKETING FRAUD

SEC. 201. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION SERVICE FOR 
              VICTIMS OF TELEMARKETING FRAUD.

    (a) Centralized Service.--
            (1) Requirement.--The Federal Trade Commission shall, after 
        consultation with the Attorney General, establish procedures 
        to--
                    (A) log and acknowledge the receipt of complaints 
                by individuals who certify that they have a reasonable 
                belief that they have been the victim of fraud in 
                connection with the conduct of telemarketing (as that 
                term is defined in section 2325 of title 18, United 
                States Code, as amended by section 202(a) of this Act);
                    (B) provide to individuals described in 
                subparagraph (A), and to any other persons, information 
                on telemarketing fraud, including--
                            (i) general information on telemarketing 
                        fraud, including descriptions of the most 
                        common telemarketing fraud schemes;
                            (ii) information on means of referring 
                        complaints on telemarketing fraud to 
                        appropriate law enforcement agencies, including 
                        the Director of the Federal Bureau of 
                        Investigation, the attorneys general of the 
                        States, and the national toll-free telephone 
                        number on telemarketing fraud established by 
                        the Attorney General; and
                            (iii) information, if available, on the 
                        number of complaints of telemarketing fraud 
                        against particular companies and any record of 
                        convictions for telemarketing fraud by 
                        particular companies for which a specific 
                        request has been made; and
                    (C) refer complaints described in subparagraph (A) 
                to appropriate entities, including State consumer 
                protection agencies or entities and appropriate law 
                enforcement agencies, for potential law enforcement 
                action.
            (2) Central location.--The service under the procedures 
        under paragraph (1) shall be provided at and through a single 
        site selected by the Commission for that purpose.
            (3) Commencement.--The Federal Trade Commission shall 
        commence carrying out the service not later than 1 year after 
        the date of enactment of this Act.
    (b) Creation of Fraud Conviction Database.--
            (1) Establishment.--The Attorney General shall establish 
        and maintain a computer database containing information on the 
        corporations and companies convicted of offenses for 
        telemarketing fraud under Federal and State law.
            (2) Database.--The database established under paragraph (1) 
        shall include a description of the type and method of the fraud 
        scheme for which each corporation or company covered by the 
        database was convicted.
            (3) Use of database.--The Attorney General shall make 
        information in the database available to the Federal Trade 
        Commission for purposes of providing information as part of the 
        service under subsection (a).
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section.

SEC. 202. BLOCKING OF TELEMARKETING SCAMS.

    (a) Expansion of Scope of Telemarketing Fraud Subject to Enhanced 
Criminal Penalties.--Section 2325(1) of title 18, United States Code, 
is amended by striking ``telephone calls'' and inserting ``wire 
communications utilizing a telephone service''.
    (b) Blocking or Termination of Telephone Service Associated With 
Telemarketing Fraud.--
            (1) In general.--Chapter 113A of title 18, United States 
        Code, is amended by adding at the end the following:
``Sec. 2328. Blocking or termination of telephone service
    ``(a) Definitions.--In this section:
            ``(1) Reasonable notice to the subscriber.--
                    ``(A) In general.--The term `reasonable notice to 
                the subscriber', in the case of a subscriber of a 
                common carrier, means any information necessary to 
                provide notice to the subscriber that--
                            ``(i) the wire communications facilities 
                        furnished by the common carrier may not be used 
                        for the purpose of transmitting, receiving, 
                        forwarding, or delivering a wire communication 
                        in interstate or foreign commerce for the 
                        purpose of executing any scheme or artifice to 
                        defraud in connection with the conduct of 
                        telemarketing; and
                            ``(ii) such use constitutes sufficient 
                        grounds for the immediate discontinuance or 
                        refusal of the leasing, furnishing, or 
                        maintaining of the facilities to or for the 
                        subscriber.
                    ``(B) Included matter.--The term includes any 
                tariff filed by the common carrier with the Federal 
                Communications Commission that contains the information 
                specified in subparagraph (A).
            ``(2) Wire communication.--The term `wire communication' 
        has the same meaning given that term in section 2510(1).
            ``(3) Wire communications facility.--The term `wire 
        communications facility' means any facility (including 
        instrumentalities, personnel, and services) used by a common 
        carrier for purposes of the transmission, receipt, forwarding, 
        or delivery of wire communications.
    ``(b) Blocking or Terminating Telephone Service.--If a common 
carrier subject to the jurisdiction of the Federal Communications 
Commission is notified in writing by the Attorney General, acting 
within the jurisdiction of the Attorney General, that any wire 
communications facility furnished by that common carrier is being used 
or will be used by a subscriber for the purpose of transmitting or 
receiving a wire communication in interstate or foreign commerce for 
the purpose of executing any scheme or artifice to defraud, or for 
obtaining money or property by means of false or fraudulent pretenses, 
representations, or promises, in connection with the conduct of 
telemarketing, the common carrier shall discontinue or refuse the 
leasing, furnishing, or maintaining of the facility to or for the 
subscriber after reasonable notice to the subscriber.
    ``(c) Prohibition on Damages.--No damages, penalty, or forfeiture, 
whether civil or criminal, shall be found or imposed against any common 
carrier for any act done by the common carrier in compliance with a 
notice received from the Attorney General under this section.
    ``(d) Relief.--
            ``(1) In general.--Nothing in this section may be construed 
        to prejudice the right of any person affected thereby to secure 
        an appropriate determination, as otherwise provided by law, in 
        a Federal court, that--
                    ``(A) the leasing, furnishing, or maintaining of a 
                facility should not be discontinued or refused under 
                this section; or
                    ``(B) the leasing, furnishing, or maintaining of a 
                facility that has been so discontinued or refused 
                should be restored.
            ``(2) Supporting information.--In any action brought under 
        this subsection, the court may direct that the Attorney General 
        present evidence in support of the notice made under subsection 
        (b) to which such action relates.''.
            (2) Conforming amendment.--The analysis for chapter 113A of 
        title 18, United States Code, is amended by adding at the end 
        the following:

``2328. Blocking or termination of telephone service.''.

                TITLE III--PREVENTING HEALTH CARE FRAUD

SEC. 301. INJUNCTIVE AUTHORITY RELATING TO FALSE CLAIMS AND ILLEGAL 
              KICKBACK SCHEMES INVOLVING FEDERAL HEALTH CARE PROGRAMS.

    (a) In General.--Section 1345(a) of title 18, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``, or'' and 
                inserting a semicolon;
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(D) committing or about to commit an offense under 
        section 1128B of the Social Security Act (42 U.S.C. 1320a-
        7b),''; and
            (2) in paragraph (2), by inserting ``a violation of 
        paragraph (1)(D), or'' before ``a banking''.
    (b) Civil Actions.--
            (1) In general.--Section 1128B of the Social Security Act 
        (42 U.S.C. 1320a-7b) is amended by adding at the end the 
        following:
    ``(g) Civil Actions.--
            ``(1) In general.--The Attorney General may bring an action 
        in the appropriate district court of the United States to 
        impose upon any person who carries out any activity in 
        violation of this section with respect to a Federal health care 
        program a civil penalty of not more than $50,000 for each such 
        violation, or damages of 3 times the total remuneration 
        offered, paid, solicited, or received, whichever is greater.
            ``(2) Existence of violation.--A violation exists under 
        paragraph (1) if 1 or more purposes of the remuneration is 
        unlawful, and the damages shall be the full amount of such 
        remuneration.
            ``(3) Procedures.--An action under paragraph (1) shall be 
        governed by--
                    ``(A) the procedures with regard to subpoenas, 
                statutes of limitations, standards of proof, and 
                collateral estoppel set forth in section 3731 of title 
                31, United States Code; and
                    ``(B) the Federal Rules of Civil Procedure.
            ``(4) No effect on other remedies.--Nothing in this section 
        may be construed to affect the availability of any other 
        criminal or civil remedy.
    ``(h) Injunctive Relief.--The Attorney General may commence a civil 
action in an appropriate district court of the United States to enjoin 
a violation of this section, as provided in section 1345 of title 18, 
United States Code.''.
            (2) Conforming amendment.--The heading of section 1128B of 
        the Social Security Act (42 U.S.C. 1320a-7b) is amended by 
        inserting ``AND CIVIL'' after ``CRIMINAL''.

SEC. 302. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

    Section 3486 of title 18, United States Code, is amended--
            (1) in subsection (a), by inserting ``, or any allegation 
        of fraud or false claims (whether criminal or civil) in 
        connection with a Federal health care program (as defined in 
        section 1128B(f) of the Social Security Act (42 U.S.C. 1320a-
        7b(f))),'' after ``Federal health care offense'' each place it 
        appears; and
            (2) by adding at the end the following:
    ``(f) Privacy Protection.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        record (including any book, paper, document, electronic medium, 
        or other object or tangible thing) produced pursuant to a 
        subpoena issued under this section that contains personally 
        identifiable health information may not be disclosed to any 
        person, except pursuant to a court order under subsection 
        (e)(1).
            ``(2) Exceptions.--A record described in paragraph (1) may 
        be disclosed--
                    ``(A) to an attorney for the Government for use in 
                the performance of the official duty of the attorney 
                (including presentation to a Federal grand jury);
                    ``(B) to government personnel (including personnel 
                of a State or subdivision of a State) as are determined 
                to be necessary by an attorney for the Government to 
                assist an attorney for the Government in the 
                performance of the official duty of that attorney to 
                enforce Federal criminal law;
                    ``(C) as directed by a court preliminarily to, or 
                in connection with, a judicial proceeding;
                    ``(D) as permitted by a court at the request of a 
                defendant in an administrative, civil, or criminal 
                action brought by the United States, upon a showing 
                that grounds may exist for a motion to exclude evidence 
                obtained under this section; or
                    ``(E) at the request of an attorney for the 
                Government, upon a showing that such matters may 
                disclose a violation of State criminal law, to an 
                appropriate official of a State or subdivision of a 
                State for the purpose of enforcing such law.
            ``(3) Manner of court ordered disclosures.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if a court orders the disclosure of 
                any record described in paragraph (1), the disclosure--
                            ``(i) shall be made in such manner, at such 
                        time, and under such conditions as the court 
                        may direct; and
                            ``(ii) shall be undertaken in a manner that 
                        preserves the confidentiality and privacy of 
                        individuals who are the subject of the record.
                    ``(B) Exception.--If disclosure is required by the 
                nature of the proceedings, the attorney for the 
                Government shall request that the presiding judicial or 
                administrative officer enter an order limiting the 
                disclosure of the record to the maximum extent 
                practicable, including redacting the personally 
                identifiable health information from publicly disclosed 
                or filed pleadings or records.
            ``(4) Destruction of records.--Any record described in 
        paragraph (1), and all copies of that record, in whatever form 
        (including electronic), shall be destroyed not later than 90 
        days after the date on which the record is produced, unless 
        otherwise ordered by a court of competent jurisdiction, upon a 
        showing of good cause.
            ``(5) Effect of violation.--Any person who knowingly fails 
        to comply with this subsection may be punished as in contempt 
        of court.
    ``(g) Personally Identifiable Health Information Defined.--In this 
section, the term `personally identifiable health information' means 
any information, including genetic information, demographic 
information, and tissue samples collected from an individual, whether 
oral or recorded in any form or medium, that--
            ``(1) relates to the past, present, or future physical or 
        mental health or condition of an individual, the provision of 
        health care to an individual, or the past, present, or future 
        payment for the provision of health care to an individual; and
            ``(2) either--
                    ``(A) identifies an individual; or
                    ``(B) with respect to which there is a reasonable 
                basis to believe that the information can be used to 
                identify an individual.''.

SEC. 303. EXTENDING ANTIFRAUD SAFEGUARDS TO THE FEDERAL EMPLOYEE HEALTH 
              BENEFITS PROGRAM.

    Section 1128B(f)(1) of the Social Security Act (42 U.S.C. 1320a-
7b(f)(1)) is amended by striking ``(other than the health insurance 
program under chapter 89 of title 5, United States Code)''.

SEC. 304. GRAND JURY DISCLOSURE.

    Section 3322 of title 18, United States Code, is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Grand Jury Disclosure.--Subject to section 3486(f), upon ex 
parte motion of an attorney for the Government showing that a 
disclosure in accordance with that subsection would be of assistance to 
enforce any provision of Federal law, a court may direct the disclosure 
of any matter occurring before a grand jury during an investigation of 
a Federal health care offense (as defined in section 24(a) of this 
title) to an attorney for the Government to use in any investigation or 
civil proceeding relating to fraud or false claims in connection with a 
Federal health care program (as defined in section 1128B(f) of the 
Social Security Act (42 U.S.C. 1320a-7b(f))).''.

SEC. 305. INCREASING THE EFFECTIVENESS OF CIVIL INVESTIGATIVE DEMANDS 
              IN FALSE CLAIMS INVESTIGATIONS.

    Section 3733 of title 31, United States Code, is amended--
            (1) in subsection (a)(1), in the second sentence, by 
        inserting ``, except to the Deputy Attorney General or to an 
        Assistant Attorney General'' before the period at the end; and
            (2) in subsection (i)(2)(C), by adding at the end the 
        following: ``Disclosure of information to a person who brings a 
        civil action under section 3730, or the counsel of that person, 
        shall be allowed only upon application to a United States 
        district court showing that such disclosure would assist the 
        Department of Justice in carrying out its statutory 
        responsibilities.''.

            TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Nursing Home Resident Protection 
Act of 2002''.

SEC. 402. NURSING HOME RESIDENT PROTECTION.

    (a) Protection of Residents in Nursing Homes and Other Residential 
Health Care Facilities.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1349. Pattern of violations resulting in harm to residents of 
              nursing homes and related facilities
    ``(a) Definitions.--In this section:
            ``(1) Entity.--The term `entity' means--
                    ``(A) any residential health care facility 
                (including facilities that do not exclusively provide 
                residential health care services);
                    ``(B) any entity that manages a residential health 
                care facility; or
                    ``(C) any entity that owns, directly or indirectly, 
                a controlling interest or a 50 percent or greater 
                interest in 1 or more residential health care 
                facilities including States, localities, and political 
                subdivisions thereof.
            ``(2) Federal health care program.--The term `Federal 
        health care program' has the same meaning given that term in 
        section 1128B(f) of the Social Security Act.
            ``(3) Pattern of violations.--The term `pattern of 
        violations' means multiple violations of a single Federal or 
        State law, regulation, or rule or single violations of multiple 
        Federal or State laws, regulations, or rules, that are 
        widespread, systemic, repeated, similar in nature, or result 
        from a policy or practice.
            ``(4) Residential health care facility.--The term 
        `residential health care facility' means any facility 
        (including any facility that does not exclusively provide 
        residential health care services), including skilled and 
        unskilled nursing facilities and mental health and mental 
        retardation facilities, that--
                    ``(A) receives Federal funds, directly from the 
                Federal Government or indirectly from a third party on 
                contract with or receiving a grant or other monies from 
                the Federal Government, to provide health care; or
                    ``(B) provides health care services in a 
                residential setting and, in any calendar year in which 
                a violation occurs, is the recipient of benefits or 
                payments in excess of $10,000 from a Federal health 
                care program.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, or possession of the United States.
    ``(b) Prohibition and Penalties.--Whoever knowingly and willfully 
engages in a pattern of violations that affects the health, safety, or 
care of individuals residing in a residential health care facility or 
facilities, and that results in significant physical or mental harm to 
1 or more of such residents, shall be punished as provided in section 
1347, except that any organization shall be fined not more than 
$2,000,000 per residential health care facility.
    ``(c) Civil Provisions.--
            ``(1) In general.--The Attorney General may bring an action 
        in a district court of the United States to impose on any 
        individual or entity that engages in a pattern of violations 
        that affects the health, safety, or care of individuals 
        residing in a residential health care facility, and that 
        results in physical or mental harm to 1 or more such 
        residents--
                    ``(A) a civil penalty; or
                    ``(B) in the case of--
                            ``(i) an individual (other than an owner, 
                        operator, officer, or manager of such a 
                        residential health care facility), not more 
                        than $10,000;
                            ``(ii) an individual who is an owner, 
                        operator, officer, or manager of such a 
                        residential health care facility, not more than 
                        $100,000 for each separate facility involved in 
                        the pattern of violations under this section;
                            ``(iii) a residential health care facility, 
                        not more than $1,000,000 for each pattern of 
                        violations; or
                            ``(iv) an entity, not more than $1,000,000 
                        for each separate residential health care 
                        facility involved in the pattern of violations 
                        owned or managed by that entity.
            ``(2) Other appropriate relief.--If the Attorney General 
        has reason to believe that an individual or entity is engaging 
        in or is about to engage in a pattern of violations that would 
        affect the health, safety, or care of individuals residing in a 
        residential health care facility, and that results in or has 
        the potential to result in physical or mental harm to 1 or more 
        such residents, the Attorney General may petition an 
        appropriate district court of the United States for appropriate 
        equitable and declaratory relief to eliminate the pattern of 
        violations.
            ``(3) Procedures.--In any action under this subsection--
                    ``(A) a subpoena requiring the attendance of a 
                witness at a trial or hearing may be served at any 
                place in the United States;
                    ``(B) the action may not be brought more than 6 
                years after the date on which the violation occurred;
                    ``(C) the United States shall be required to prove 
                each charge by a preponderance of the evidence;
                    ``(D) the civil investigative demand procedures set 
                forth in the Antitrust Civil Process Act (15 U.S.C. 
                1311 et seq.) and regulations promulgated pursuant to 
                that Act shall apply to any investigation; and
                    ``(E) the filing or resolution of a matter shall 
                not preclude any other remedy that is available to the 
                United States or any other person.
    ``(d) Prohibition Against Retaliation.--Any person who is the 
subject of retaliation, either directly or indirectly, for reporting a 
condition that may constitute grounds for relief under this section may 
bring an action in an appropriate district court of the United States 
for damages, attorneys' fees, and other relief.''.
    (b) Authorized Investigative Demand Procedures.--Section 3486(a)(1) 
of title 18, United States Code, as amended by section 402 of this Act, 
is amended by inserting ``, act or activity involving section 1349 of 
this title'' after ``Federal health care offense''.
    (c) Conforming Amendment.--The analysis for chapter 63 of title 18, 
United States Code, is amended by adding at the end the following:

``1349. Pattern of violations resulting in harm to residents of nursing 
                            homes and related facilities.''.

        TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

SEC. 501. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS 
              AND REGULATORY AGENCIES.

    Section 981(e) of title 18, United States Code, is amended--
            (1) in each of paragraphs (3), (4), and (5), by striking 
        ``in the case of property referred to in subsection (a)(1)(C)'' 
        and inserting ``in the case of property forfeited in connection 
        with an offense resulting in a pecuniary loss to a financial 
        institution or regulatory agency,''; and
            (2) in paragraph (7), by striking ``In the case of property 
        referred to in subsection (a)(1)(D)'' and inserting ``in the 
        case of property forfeited in connection with an offense 
        relating to the sale of assets acquired or held by any Federal 
        financial institution or regulatory agency, or person appointed 
        by such agency, as receiver, conservator, or liquidating agent 
        for a financial institution''.

SEC. 502. VICTIM RESTITUTION.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding at the end the following:
    ``(r) Victim Restitution.--
            ``(1) Satisfaction of order of restitution.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a defendant may not use property 
                subject to forfeiture under this section to satisfy an 
                order of restitution.
                    ``(B) Exception.--If there are 1 or more 
                identifiable victims entitled to restitution from a 
                defendant, and the defendant has no assets other than 
                the property subject to forfeiture with which to pay 
                restitution to the victim or victims, the attorney for 
                the Government may move to dismiss a forfeiture 
                allegation against the defendant before entry of a 
                judgment of forfeiture in order to allow the property 
                to be used by the defendant to pay restitution in 
                whatever manner the court determines to be appropriate 
                if the court grants the motion. In granting a motion 
                under this subparagraph, the court shall include a 
                provision ensuring that costs associated with the 
                identification, seizure, management, and disposition of 
                the property are recovered by the United States.
            ``(2) Restoration of forfeited property.--
                    ``(A) In general.--If an order of forfeiture is 
                entered pursuant to this section and the defendant has 
                no assets other than the forfeited property to pay 
                restitution to 1 or more identifiable victims who are 
                entitled to restitution, the Government shall restore 
                the forfeited property to the victims pursuant to 
subsection (i)(1) once the ancillary proceeding under subsection (n) 
has been completed and the costs of the forfeiture action have been 
deducted.
                    ``(B) Distribution of property.--On a motion of the 
                attorney for the Government, the court may enter any 
                order necessary to facilitate the distribution of any 
                property restored under this paragraph.
            ``(3) Victim defined.--In this subsection, the term 
        `victim'--
                    ``(A) means a person other than a person with a 
                legal right, title, or interest in the forfeited 
                property sufficient to satisfy the standing 
                requirements of subsection (n)(2) who may be entitled 
                to restitution from the forfeited funds pursuant to 
                section 9.8 of part 9 of title 28, Code of Federal 
                Regulations (or any successor to that regulation); and
                    ``(B) includes any person who is the victim of the 
                offense giving rise to the forfeiture, or of any 
                offense that was part of the same scheme, conspiracy, 
                or pattern of criminal activity, including, in the case 
                of a money laundering offense, any offense constituting 
                the underlying specified unlawful activity.''.

SEC. 503. BANKRUPTCY PROCEEDINGS NOT USED TO SHIELD ILLEGAL GAINS FROM 
              FALSE CLAIMS.

    (a) Certain Actions Not Stayed by Bankruptcy Proceedings.--
            (1) In general.--Notwithstanding any other provision of 
        law, the commencement or continuation of an action under 
        section 3729 of title 31, United States Code, does not operate 
        as a stay under section 105(a) or 362(a)(1) of title 11, United 
        States Code.
            (2) Conforming amendment.--Section 362(b) of title 11, 
        United States Code, is amended--
                    (A) in paragraph (17), by striking ``or'' at the 
                end;
                    (B) in paragraph (18), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(19) the commencement or continuation of an action under 
        section 3729 of title 31.''.
    (b) Certain Debts Not Dischargeable in Bankruptcy.--Section 523 of 
title 11, United States Code, is amended by adding at the end the 
following:
    ``(f) A discharge under section 727, 1141, 1228(a), 1228(b), or 
1328(b) does not discharge a debtor from a debt owed for violating 
section 3729 of title 31.''.
    (c) Repayment of Certain Debts Considered Final.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. False claims
    ``No transfer on account of a debt owed to the United States for 
violating section 3729 of title 31, or under a compromise order or 
other agreement resolving such a debt may be avoided under section 544, 
545, 547, 548, 549, 553(b), or 742(a).''.
            (2) Conforming amendment.--The analysis for chapter 1 of 
        title 11, United States Code, is amended by adding at the end 
        the following:

``111. False claims.''.

SEC. 504. FORFEITURE FOR RETIREMENT OFFENSES.

    (a) Criminal Forfeiture.--Section 982(a) of title 18, United States 
Code, is amended by adding at the end the following:
    ``(9) Criminal Forfeiture.--
            ``(A) In general.--The court, in imposing a sentence on a 
        person convicted of a retirement offense, shall order the 
        person to forfeit property, real or personal, that constitutes 
        or that is derived, directly or indirectly, from proceeds 
        traceable to the commission of the offense.
            ``(B) Retirement offense defined.--In this paragraph, if a 
        violation, conspiracy, or solicitation relates to a retirement 
        arrangement (as defined in section 1348 of title 18, United 
        States Code), the term `retirement offense' means a violation 
        of--
                    ``(i) section 664, 1001, 1027, 1341, 1343, 1348, 
                1951, 1952, or 1954 of title 18, United States Code; or
                    ``(ii) section 411, 501, or 511 of the Employee 
                Retirement Income Security Act of 1974 (29 U.S.C. 1111, 
                1131, 1141).''.
    (b) Civil Forfeiture.--Section 981(a)(1) of title 18, United States 
Code, is amended by adding at the end the following:
            ``(H) Any property, real or personal, that constitutes or 
        is derived, directly or indirectly, from proceeds traceable to 
        the commission of, criminal conspiracy to violate, or 
        solicitation to commit a crime of violence involving, a 
        retirement offense (as defined in section 982(a)(9)(B)).''.
                                 <all>