[Congressional Record Volume 169, Number 58 (Thursday, March 30, 2023)]
[Senate]
[Pages S1081-S1082]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                ADMINISTRATIVE FALSE CLAIMS ACT OF 2023

  Mr. SCHUMER. Mr. President, I ask unanimous consent that the 
Committee on the Judiciary be discharged from further consideration of 
S. 659 and the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 659) to amend chapter 38 of title 31, United 
     States Code, relating to civil remedies, and for other 
     purposes.

  There being no objection, the committee was discharged, and the 
Senate proceeded to consider the bill, which was reported from the 
Committee on the Judiciary.
  Mr. SCHUMER. I ask unanimous consent that the bill be considered read 
a third time and passed and the motion to reconsider be considered made 
and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 659) was ordered to be engrossed for a third reading, 
was read the third time, and passed, as follows:

                                 S. 659

       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 ``Administrative False Claims 
     Act of 2023''.

     SEC. 2. ADMINISTRATIVE FALSE CLAIMS.

       (a) Change in Short Title.--
       (1) In general.--Subtitle B of title VI of the Omnibus 
     Budget Reconciliation Act of 1986 (Public Law 99-509; 100 
     Stat. 1934) is amended--
       (A) in the subtitle heading, by striking ``Program Fraud 
     Civil Remedies'' and inserting ``Administrative False 
     Claims''; and
       (B) in section 6101 (31 U.S.C. 3801 note), by striking 
     ``Program Fraud Civil Remedies Act of 1986'' and inserting 
     ``Administrative False Claims Act''.
       (2) References.--Any reference to the Program Fraud Civil 
     Remedies Act of 1986 in any provision of law, regulation, 
     map, document, record, or other paper of the United States 
     shall be deemed a reference to the Administrative False 
     Claims Act.
       (b) Reverse False Claims.--Chapter 38 of title 31, United 
     States Code, is amended--
       (1) in section 3801(a)(3), by amending subparagraph (C) to 
     read as follows:
       ``(C) made to an authority which has the effect of 
     concealing or improperly avoiding or decreasing an obligation 
     to pay or transmit property, services, or money to the 
     authority,''; and
       (2) in section 3802(a)(3)--
       (A) by striking ``An assessment'' and inserting ``(A) 
     Except as provided in subparagraph (B), an assessment''; and
       (B) by adding at the end the following:
       ``(B) In the case of a claim described in section 
     3801(a)(3)(C), an assessment shall not be made under the 
     second sentence of paragraph (1) in an amount that is more 
     than double the value of the property, services, or money 
     that was wrongfully withheld from the authority.''.
       (c) Increasing Dollar Amount of Claims.--Section 3803(c) of 
     title 31, United States Code, is amended--
       (1) in paragraph (1), by striking ``$150,000'' each place 
     that term appears and inserting ``$1,000,000''; and
       (2) by adding at the end the following:
       ``(3) Adjustment for Inflation.--The maximum amount in 
     paragraph (1) shall be adjusted for inflation in the same 
     manner and to the same extent as civil monetary penalties 
     under the Federal Civil Penalties Inflation Adjustment Act 
     (28 U.S.C. 2461 note).''.
       (d) Recovery of Costs.--Section 3806(g)(1) of title 31, 
     United States Code, is amended to read as follows:
       ``(1)(A) Except as provided in paragraph (2)--
       ``(i) any amount collected under this chapter shall be 
     credited first to reimburse the

[[Page S1082]]

     authority or other Federal entity that expended costs in 
     support of the investigation or prosecution of the action, 
     including any court or hearing costs; and
       ``(ii) amounts reimbursed under clause (i) shall--
       ``(I) be deposited in--
       ``(aa) the appropriations account of the authority or other 
     Federal entity from which the costs described in subparagraph 
     (A) were obligated;
       ``(bb) a similar appropriations account of the authority or 
     other Federal entity; or
       ``(cc) if the authority or other Federal entity expended 
     nonappropriated funds, another appropriate account; and
       ``(II) remain available until expended.
       ``(B) Any amount remaining after reimbursements described 
     in subparagraph (A) shall be deposited as miscellaneous 
     receipts in the Treasury of the United States.''.
       (e) Semiannual Reporting.--Section 405(c) of title 5, 
     United States Code, is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) by redesignating paragraph (5) as paragraph (6); and
       (3) by inserting after paragraph (4) the following:
       ``(5) information relating to cases under chapter 38 of 
     title 31, including--
       ``(A) the number of reports submitted by investigating 
     officials to reviewing officials under section 3803(a)(1) of 
     such title;
       ``(B) actions taken in response to reports described in 
     subparagraph (A), which shall include statistical tables 
     showing--
       ``(i) pending cases;
       ``(ii) resolved cases;
       ``(iii) the average length of time to resolve each case;
       ``(iv) the number of final agency decisions that were 
     appealed to a district court of the United States or a higher 
     court; and
       ``(v) if the total number of cases in a report is greater 
     than 2--

       ``(I) the number of cases that were settled; and
       ``(II) the total penalty or assessment amount recovered in 
     each case, including through a settlement or compromise; and

       ``(C) instances in which the reviewing official declined to 
     proceed on a case reported by an investigating official; 
     and''.
       (f) Increasing Efficiency of DOJ Processing.--Section 
     3803(j) of title 31, United States Code, is amended--
       (1) by inserting ``(1)'' before ``The reviewing''; and
       (2) by adding at the end the following:
       ``(2) A reviewing official shall notify the Attorney 
     General in writing not later than 30 days before entering 
     into any agreement to compromise or settle allegations of 
     liability under section 3802 and before the date on which the 
     reviewing official is permitted to refer allegations of 
     liability to a presiding officer under subsection (b).''.
       (g) Revision of Definition of Hearing Officials.--
       (1) In general.--Chapter 38 of title 31, United States 
     Code, is amended--
       (A) in section 3801(a)(7)--
       (i) in subparagraph (A), by striking ``or'' at the end;
       (ii) in subparagraph (B)(vii), by adding ``or'' at the end; 
     and
       (iii) by adding at the end the following:
       ``(C) a member of the board of contract appeals pursuant to 
     section 7105 of title 41, if the authority does not employ an 
     available presiding officer under subparagraph (A);''; and
       (B) in section 3803(d)(2)--
       (i) in subparagraph (A), by striking ``and'' at the end;
       (ii) in subparagraph (B)--

       (I) by striking ``the presiding'' and inserting ``(i) in 
     the case of a referral to a presiding officer described in 
     subparagraph (A) or (B) of section 3801(a)(7), the 
     presiding'';
       (II) in clause (i), as so designated, by striking the 
     period at the end and inserting ``; or''; and
       (III) by adding at the end the following:

       ``(ii) in the case of a referral to a presiding officer 
     described in subparagraph (C) of section 3801(a)(7)--
       ``(I) the reviewing official shall submit a copy of the 
     notice required by under paragraph (1) and of the response of 
     the person receiving such notice requesting a hearing--

       ``(aa) to the board of contract appeals that has 
     jurisdiction over matters arising from the agency of the 
     reviewing official pursuant to section 7105(e)(1) of title 
     41; or
       ``(bb) if the Chair of the board of contract appeals 
     declines to accept the referral, to any other board of 
     contract appeals; and

       ``(II) the reviewing official shall simultaneously mail, by 
     registered or certified mail, or shall deliver, notice to the 
     person alleged to be liable under section 3802 that the 
     referral has been made to an agency board of contract appeals 
     with an explanation as to where the person may obtain the 
     relevant rules of procedure promulgated by the board; and''; 
     and
       (iii) by adding at the end the following:
       ``(C) in the case of a hearing conducted by a presiding 
     officer described in subparagraph (C) of section 3801(a)(7)--
       ``(i) the presiding officer shall conduct the hearing 
     according to the rules and procedures promulgated by the 
     board of contract appeals; and
       ``(ii) the hearing shall not be subject to the provisions 
     in subsection (g)(2), (h), or (i).''.
       (2) Agency boards.--Section 7105(e) of title 41, United 
     States Code, is amended--
       (A) in paragraph (1), by adding at the end the following:
       ``(E) Administrative false claims act.--
       ``(i) In general.--The boards described in subparagraphs 
     (B), (C), and (D) shall have jurisdiction to hear any case 
     referred to a board of contract appeals under section 3803(d) 
     of title 31.
       ``(ii) Declining referral.--If the Chair of a board 
     described in subparagraph (B), (C), or (D) determines that 
     accepting a case under clause (i) would prevent adequate 
     consideration of other cases being handled by the board, the 
     Chair may decline to accept the referral.''; and
       (B) in paragraph (2), by inserting ``or, in the event that 
     a case is filed under chapter 38 of title 31, any relief that 
     would be available to a litigant under that chapter'' before 
     the period at the end.
       (3) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, each authority head, as defined in 
     section 3801 of title 31, United States Code, and each board 
     of contract appeals of a board described in subparagraph (B), 
     (C), or (D) of section 7105(e) of title 41, United States 
     Code, shall amend procedures regarding proceedings as 
     necessary to implement the amendments made by this 
     subsection.
       (h) Revision of Limitations.--Section 3808 of title 31, 
     United States Code, is amended by striking subsection (a) and 
     inserting the following:
       ``(a) A notice to the person alleged to be liable with 
     respect to a claim or statement shall be mailed or delivered 
     in accordance with section 3803(d)(1) not later than the 
     later of--
       ``(1) 6 years after the date on which the violation of 
     section 3802 is committed; or
       ``(2) 3 years after the date on which facts material to the 
     action are known or reasonably should have been known by the 
     authority head, but in no event more than 10 years after the 
     date on which the violation is committed.''.
       (i) Definitions.--Section 3801 of title 31, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (8), by striking ``and'' at the end;
       (B) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(10) `material' has the meaning given the term in section 
     3729(b) of this title; and
       ``(11) `obligation' has the meaning given the term in 
     section 3729(b) of this title.''; and
       (2) by adding at the end the following:
       ``(d) For purposes of subsection (a)(10), materiality shall 
     be determined in the same manner as under section 3729 of 
     this title.''.
       (j) Promulgation of Regulations.--Not later than 180 days 
     after the date of enactment of this Act, each authority head, 
     as defined in section 3801 of title 31, United States Code, 
     shall--
       (1) promulgate regulations and procedures to carry out this 
     Act and the amendments made by this Act; and
       (2) review and update existing regulations and procedures 
     of the authority to ensure compliance with this Act and the 
     amendments made by this Act.

     

                          ____________________