What This Bill Does
This bill renames and changes the "Program Fraud Civil Remedies Act of 1986" to the "Administrative False Claims Act." It makes changes to how the federal government handles cases where people or businesses make false claims to government agencies or wrongfully avoid paying money or property they owe to the government.
Who It Affects
Federal government agencies and their officials who investigate false claims, people and businesses accused of making false claims to the government, the Department of Justice (which handles legal cases), and boards of contract appeals (groups that hear disputes about government contracts).
Key Provisions
- The law now covers cases where someone makes a false statement to hide or improperly avoid paying money, property, or services they owe to a government agency (Sec. 2(b)).
- Penalties in false claims cases can now go up to $1,000,000 instead of $150,000 (Sec. 2(c)).
- When the government wins money in these cases, that money first goes back to reimburse the government agency that spent money investigating and prosecuting the case, including court costs (Sec. 2(d)).
- The government must report every six months on how many false claims cases are pending, how many are resolved, how long cases take, and how much money was recovered (Sec. 2(e)).
- Government officials must notify the Department of Justice at least 30 days before settling or compromising with someone accused of making a false claim (Sec. 2(f)).
- Boards of contract appeals (specialized hearing groups) can now hear false claims cases if a government agency does not have its own hearing officer available (Sec. 2(g)).
- The time limit to file a false claims case is the later of 6 years after the violation or 3 years after the agency knew about it, but never more than 10 years after the violation (Sec. 2(h)).
What Changes
The law name changes from "Program Fraud Civil Remedies Act of 1986" to "Administrative False Claims Act." The types of false claims the law covers expand to include cases where someone avoids paying what they owe. Penalty amounts increase significantly. Government agencies can now use contract appeals boards to hear cases instead of only internal hearing officers. All references to the old law name in government documents and regulations automatically become references to the new name.
Important Definitions
The bill states that "material" and "obligation" have the same meanings as given in another section of federal law (section 3729(b)). The bill does not explicitly define these terms within its own text, so the exact meanings are in another law.
118TH CONGRESS
1ST SESSION
S. 659
AN ACT
To amend chapter 38 of title 31, United States Code,
relating to civil remedies, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
2
† S 659 ES
SECTION 1. SHORT TITLE.
1
This Act may be cited as the ‘‘Administrative False
2
Claims Act of 2023’’.
3
SEC. 2. ADMINISTRATIVE FALSE CLAIMS.
4
(a) CHANGE IN SHORT TITLE.—
5
(1) IN GENERAL.—Subtitle B of title VI of the
6
Omnibus Budget Reconciliation Act of 1986 (Public
7
Law 99–509; 100 Stat. 1934) is amended—
8
(A) in the subtitle heading, by striking
9
‘‘Program Fraud Civil Remedies’’ and
10
inserting
‘‘Administrative
False
11
Claims’’; and
12
(B) in section 6101 (31 U.S.C. 3801 note),
13
by striking ‘‘Program Fraud Civil Remedies Act
14
of 1986’’ and inserting ‘‘Administrative False
15
Claims Act’’.
16
(2) REFERENCES.—Any reference to the Pro-
17
gram Fraud Civil Remedies Act of 1986 in any pro-
18
vision of law, regulation, map, document, record, or
19
other paper of the United States shall be deemed a
20
reference to the Administrative False Claims Act.
21
(b) REVERSE FALSE CLAIMS.—Chapter 38 of title
22
31, United States Code, is amended—
23
(1) in section 3801(a)(3), by amending sub-
24
paragraph (C) to read as follows:
25
3
† S 659 ES
‘‘(C) made to an authority which has the
1
effect of concealing or improperly avoiding or
2
decreasing an obligation to pay or transmit
3
property, services, or money to the authority,’’;
4
and
5
(2) in section 3802(a)(3)—
6
(A) by striking ‘‘An assessment’’ and in-
7
serting ‘‘(A) Except as provided in subpara-
8
graph (B), an assessment’’; and
9
(B) by adding at the end the following:
10
‘‘(B) In the case of a claim described in section
11
3801(a)(3)(C), an assessment shall not be made
12
under the second sentence of paragraph (1) in an
13
amount that is more than double the value of the
14
property, services, or money that was wrongfully
15
withheld from the authority.’’.
16
(c) INCREASING DOLLAR AMOUNT OF CLAIMS.—Sec-
17
tion 3803(c) of title 31, United States Code, is amended—
18
(1) in paragraph (1), by striking ‘‘$150,000’’
19
each place that term appears and inserting
20
‘‘$1,000,000’’; and
21
(2) by adding at the end the following:
22
‘‘(3) ADJUSTMENT FOR INFLATION.—The maximum
23
amount in paragraph (1) shall be adjusted for inflation
24
in the same manner and to the same extent as civil mone-
25
4
† S 659 ES
tary penalties under the Federal Civil Penalties Inflation
1
Adjustment Act (28 U.S.C. 2461 note).’’.
2
(d) RECOVERY OF COSTS.—Section 3806(g)(1) of
3
title 31, United States Code, is amended to read as fol-
4
lows:
5
‘‘(1)(A) Except as provided in paragraph (2)—
6
‘‘(i) any amount collected under this chapter
7
shall be credited first to reimburse the authority or
8
other Federal entity that expended costs in support
9
of the investigation or prosecution of the action, in-
10
cluding any court or hearing costs; and
11
‘‘(ii) amounts reimbursed under clause (i)
12
shall—
13
‘‘(I) be deposited in—
14
‘‘(aa) the appropriations account of
15
the authority or other Federal entity from
16
which the costs described in subparagraph
17
(A) were obligated;
18
‘‘(bb) a similar appropriations account
19
of the authority or other Federal entity; or
20
‘‘(cc) if the authority or other Federal
21
entity expended nonappropriated funds,
22
another appropriate account; and
23
‘‘(II) remain available until expended.
24
5
† S 659 ES
‘‘(B) Any amount remaining after reimbursements
1
described in subparagraph (A) shall be deposited as mis-
2
cellaneous receipts in the Treasury of the United States.’’.
3
(e) SEMIANNUAL REPORTING.—Section 405(c) of
4
title 5, United States Code, is amended—
5
(1) in paragraph (4), by striking ‘‘and’’ at the
6
end;
7
(2) by redesignating paragraph (5) as para-
8
graph (6); and
9
(3) by inserting after paragraph (4) the fol-
10
lowing:
11
‘‘(5) information relating to cases under chap-
12
ter 38 of title 31, including—
13
‘‘(A) the number of reports submitted by
14
investigating officials to reviewing officials
15
under section 3803(a)(1) of such title;
16
‘‘(B) actions taken in response to reports
17
described in subparagraph (A), which shall in-
18
clude statistical tables showing—
19
‘‘(i) pending cases;
20
‘‘(ii) resolved cases;
21
‘‘(iii) the average length of time to re-
22
solve each case;
23
6
† S 659 ES
‘‘(iv) the number of final agency deci-
1
sions that were appealed to a district court
2
of the United States or a higher court; and
3
‘‘(v) if the total number of cases in a
4
report is greater than 2—
5
‘‘(I) the number of cases that
6
were settled; and
7
‘‘(II) the total penalty or assess-
8
ment amount recovered in each case,
9
including through a settlement or
10
compromise; and
11
‘‘(C) instances in which the reviewing offi-
12
cial declined to proceed on a case reported by
13
an investigating official; and’’.
14
(f) INCREASING
EFFICIENCY
OF
DOJ PROC-
15
ESSING.—Section 3803(j) of title 31, United States Code,
16
is amended—
17
(1) by inserting ‘‘(1)’’ before ‘‘The reviewing’’;
18
and
19
(2) by adding at the end the following:
20
‘‘(2) A reviewing official shall notify the Attorney
21
General in writing not later than 30 days before entering
22
into any agreement to compromise or settle allegations of
23
liability under section 3802 and before the date on which
24
7
† S 659 ES
the reviewing official is permitted to refer allegations of
1
liability to a presiding officer under subsection (b).’’.
2
(g) REVISION OF DEFINITION OF HEARING OFFI-
3
CIALS.—
4
(1) IN
GENERAL.—Chapter 38 of title 31,
5
United States Code, is amended—
6
(A) in section 3801(a)(7)—
7
(i) in subparagraph (A), by striking
8
‘‘or’’ at the end;
9
(ii) in subparagraph (B)(vii), by add-
10
ing ‘‘or’’ at the end; and
11
(iii) by adding at the end the fol-
12
lowing:
13
‘‘(C) a member of the board of contract
14
appeals pursuant to section 7105 of title 41, if
15
the authority does not employ an available pre-
16
siding officer under subparagraph (A);’’; and
17
(B) in section 3803(d)(2)—
18
(i) in subparagraph (A), by striking
19
‘‘and’’ at the end;
20
(ii) in subparagraph (B)—
21
(I) by striking ‘‘the presiding’’
22
and inserting ‘‘(i) in the case of a re-
23
ferral to a presiding officer described
24
8
† S 659 ES
in subparagraph (A) or (B) of section
1
3801(a)(7), the presiding’’;
2
(II) in clause (i), as so des-
3
ignated, by striking the period at the
4
end and inserting ‘‘; or’’; and
5
(III) by adding at the end the
6
following:
7
‘‘(ii) in the case of a referral to a presiding
8
officer described in subparagraph (C) of section
9
3801(a)(7)—
10
‘‘(I) the reviewing official shall submit
11
a copy of the notice required by under
12
paragraph (1) and of the response of the
13
person receiving such notice requesting a
14
hearing—
15
‘‘(aa) to the board of contract
16
appeals that has jurisdiction over
17
matters arising from the agency of the
18
reviewing official pursuant to section
19
7105(e)(1) of title 41; or
20
‘‘(bb) if the Chair of the board of
21
contract appeals declines to accept the
22
referral, to any other board of con-
23
tract appeals; and
24
9
† S 659 ES
‘‘(II) the reviewing official shall simul-
1
taneously mail, by registered or certified
2
mail, or shall deliver, notice to the person
3
alleged to be liable under section 3802 that
4
the referral has been made to an agency
5
board of contract appeals with an expla-
6
nation as to where the person may obtain
7
the relevant rules of procedure promul-
8
gated by the board; and’’; and
9
(iii) by adding at the end the fol-
10
lowing:
11
‘‘(C) in the case of a hearing conducted by a
12
presiding officer described in subparagraph (C) of
13
section 3801(a)(7)—
14
‘‘(i) the presiding officer shall conduct the
15
hearing according to the rules and procedures
16
promulgated by the board of contract appeals;
17
and
18
‘‘(ii) the hearing shall not be subject to the
19
provisions in subsection (g)(2), (h), or (i).’’.
20
(2) AGENCY BOARDS.—Section 7105(e) of title
21
41, United States Code, is amended—
22
(A) in paragraph (1), by adding at the end
23
the following:
24
10
† S 659 ES
‘‘(E)
ADMINISTRATIVE
FALSE
CLAIMS
1
ACT.—
2
‘‘(i) IN
GENERAL.—The boards de-
3
scribed in subparagraphs (B), (C), and (D)
4
shall have jurisdiction to hear any case re-
5
ferred to a board of contract appeals under
6
section 3803(d) of title 31.
7
‘‘(ii) DECLINING
REFERRAL.—If the
8
Chair of a board described in subpara-
9
graph (B), (C), or (D) determines that ac-
10
cepting a case under clause (i) would pre-
11
vent adequate consideration of other cases
12
being handled by the board, the Chair may
13
decline to accept the referral.’’; and
14
(B) in paragraph (2), by inserting ‘‘or, in
15
the event that a case is filed under chapter 38
16
of title 31, any relief that would be available to
17
a litigant under that chapter’’ before the period
18
at the end.
19
(3) REGULATIONS.—Not later than 180 days
20
after the date of enactment of this Act, each author-
21
ity head, as defined in section 3801 of title 31,
22
United States Code, and each board of contract ap-
23
peals of a board described in subparagraph (B), (C),
24
or (D) of section 7105(e) of title 41, United States
25
11
† S 659 ES
Code, shall amend procedures regarding proceedings
1
as necessary to implement the amendments made by
2
this subsection.
3
(h) REVISION
OF LIMITATIONS.—Section 3808 of
4
title 31, United States Code, is amended by striking sub-
5
section (a) and inserting the following:
6
‘‘(a) A notice to the person alleged to be liable with
7
respect to a claim or statement shall be mailed or delivered
8
in accordance with section 3803(d)(1) not later than the
9
later of—
10
‘‘(1) 6 years after the date on which the viola-
11
tion of section 3802 is committed; or
12
‘‘(2) 3 years after the date on which facts mate-
13
rial to the action are known or reasonably should
14
have been known by the authority head, but in no
15
event more than 10 years after the date on which
16
the violation is committed.’’.
17
(i) DEFINITIONS.—Section 3801 of title 31, United
18
States Code, is amended—
19
(1) in subsection (a)—
20
(A) in paragraph (8), by striking ‘‘and’’ at
21
the end;
22
(B) in paragraph (9), by striking the pe-
23
riod at the end and inserting a semicolon; and
24
(C) by adding at the end the following:
25
12
† S 659 ES
‘‘(10) ‘material’ has the meaning given the term
1
in section 3729(b) of this title; and
2
‘‘(11) ‘obligation’ has the meaning given the
3
term in section 3729(b) of this title.’’; and
4
(2) by adding at the end the following:
5
‘‘(d) For purposes of subsection (a)(10), materiality
6
shall be determined in the same manner as under section
7
3729 of this title.’’.
8
(j) PROMULGATION
OF REGULATIONS.—Not later
9
than 180 days after the date of enactment of this Act,
10
each authority head, as defined in section 3801 of title
11
31, United States Code, shall—
12
(1) promulgate regulations and procedures to
13
carry out this Act and the amendments made by this
14
Act; and
15
(2) review and update existing regulations and
16
procedures of the authority to ensure compliance
17
with this Act and the amendments made by this Act.
18
Passed the Senate March 30, 2023.
Attest:
Secretary.
118TH CONGRESS
1ST SESSION
S. 659
AN ACT
To amend chapter 38 of title 31, United States
Code, relating to civil remedies, and for other
purposes.