Title 31 — Money and Finance — § 3801. Definitions
Summary
These pages of Title 31 print § 3801, the definitions for chapter 38, Administrative Remedies for False Claims and Statements, which may be cited as the 'Administrative False Claims Act' under Pub. L. 118–159 of Dec. 23, 2024, formerly the Program Fraud Civil Remedies Act of 1986. A "claim" is any request, demand or submission for property, services or money, including money representing grants, loans, insurance or benefits, and each voucher, invoice or claim form is a separate claim. A person "knows or has reason to know" a claim is false through actual knowledge, deliberate ignorance or reckless disregard, and no proof of specific intent to defraud is required. The text continues into § 3802, which sets a civil penalty of not more than $5,000 for each false claim plus an assessment of not more than twice the amount of the claim.
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§ 3801 TITLE 31—MONEY AND FINANCE Page 348
Statutory Notes and Related Subsidiaries (I) provided any portion of the money
EFFECTIVE DATE OF 2009 AMENDMENT requested or demanded; or
(II) will reimburse such recipient or
Amendment by Pub. L. 111–21 effective May 20, 2009, party for any portion of the money paid
and applicable to conduct on or after May 20, 2009, ex-
cept that this section, as amended by Pub. L. 111–21, ap-
on such request or demand; or
plicable to cases pending on May 20, 2009, see section (C) made to an authority which has the ef-
4(f) of Pub. L. 111–21, set out as a note under section fect of concealing or improperly avoiding or
3729 of this title. decreasing an obligation to pay or transmit
CHAPTER 38—ADMINISTRATIVE REMEDIES property, services, or money to the author-
FOR FALSE CLAIMS AND STATEMENTS ity,
except that such term does not include any
Sec.
3801. Definitions. claim made in any return of tax imposed by
3802. False claims and statements; liability. the Internal Revenue Code of 1986;
3803. Hearing and determinations. (4) ‘‘investigating official’’ means an indi-
3804. Subpoena authority. vidual who—
3805. Judicial review. (A)(i) in the case of an authority in which
3806. Collection of civil penalties and assessments. an Office of Inspector General is established
3807. Right to administrative offset. by chapter 4 of title 5 or by any other Fed-
3808. Limitations. eral law, is the Inspector General of that au-
3809. Regulations.
[3810. Repealed.]
thority or an officer or employee of such Of-
3811. Effect on other law. fice designated by the Inspector General;
3812. Prohibition against delegation. (ii) in the case of an authority in which an
Office of Inspector General is not established
Editorial Notes by chapter 4 of title 5 or by any other Fed-
AMENDMENTS
eral law, is an officer or employee of the au-
thority designated by the authority head to
1995—Pub. L. 104–66, title III, § 3001(c)(2), Dec. 21, 1995, conduct investigations under section
109 Stat. 734, struck out item 3810 ‘‘Reports’’. 3803(a)(1) of this title; or
§ 3801. Definitions (iii) in the case of a military department,
is the Inspector General of the Department
(a) For purposes of this chapter— of Defense or an officer or employee of the
(1) ‘‘authority’’ means— Office of Inspector General of the Depart-
(A) an executive department; ment of Defense who is designated by the In-
(B) a military department; spector General; and
(C) an establishment (as such term is de- (B) who, if a member of the Armed Forces
fined in section 401 of title 5) which is not an of the United States on active duty, is serv-
executive department; ing in grade O–7 or above or, if a civilian em-
(D) the United States Postal Service; ployee, is serving in a position for which the
(E) the National Science Foundation; and rate of basic pay is not less than the min-
(F) a designated Federal entity (as such imum rate of basic pay for grade GS–16
term is defined under section 415(a) of title under the General Schedule;
5);
(5) ‘‘knows or has reason to know’’, for pur-
(2) ‘‘authority head’’ means— poses of establishing liability under section
(A) the head of an authority; or 3802, means that a person, with respect to a
(B) an official or employee of the author- claim or statement—
ity designated, in regulations promulgated (A) has actual knowledge that the claim or
by the head of the authority, to act on be- statement is false, fictitious, or fraudulent;
half of the head of the authority; (B) acts in deliberate ignorance of the
truth or falsity of the claim or statement; or
(3) ‘‘claim’’ means any request, demand, or (C) acts in reckless disregard of the truth
submission— or falsity of the claim or statement,
(A) made to an authority for property,
services, or money (including money rep- and no proof of specific intent to defraud is re-
resenting grants, loans, insurance, or bene- quired;
fits); (6) ‘‘person’’ means any individual, partner-
(B) made to a recipient of property, serv- ship, corporation, association, or private orga-
ices, or money from an authority or to a nization;
party to a contract with an authority— (7) ‘‘presiding officer’’ means—
(i) for property or services if the United (A) in the case of an authority to which
States— the provisions of subchapter II of chapter 5
(I) provided such property or services; of title 5 apply, an administrative law judge
(II) provided any portion of the funds appointed in the authority pursuant to sec-
for the purchase of such property or tion 3105 of such title or detailed to the au-
services; or thority pursuant to section 3344 of such
(III) will reimburse such recipient or title;
(B) in the case of an authority to which
party for the purchase of such property
the provisions of such subchapter do not
or services; or
apply, an officer or employee of the author-
(ii) for the payment of money (including ity who—
money representing grants, loans, insur- (i) is selected under chapter 33 of title 5
ance, or benefits) if the United States— pursuant to the competitive examination
Page 349 TITLE 31—MONEY AND FINANCE § 3801
process applicable to administrative law (10) ‘‘material’’ has the meaning given the
judges; term in section 3729(b) of this title; and
(ii) is appointed by the authority head to (11) ‘‘obligation’’ has the meaning given the
conduct hearings under section 3803 of this term in section 3729(b) of this title.
title;
(iii) is assigned to cases in rotation so (b) For purposes of paragraph (3) of subsection
far as practicable; (a)—
(iv) may not perform duties inconsistent (1) each voucher, invoice, claim form, or
with the duties and responsibilities of a other individual request or demand for prop-
presiding officer; erty, services, or money constitutes a separate
(v) is entitled to pay prescribed by the claim;
Office of Personnel Management independ- (2) each claim for property, services, or
ently of ratings and recommendations money is subject to this chapter regardless of
made by the authority and in accordance whether such property, services, or money is
with chapter 51 of such title and sub- actually delivered or paid; and
chapter III of chapter 53 of such title; (3) a claim shall be considered made, pre-
(vi) is not subject to performance ap- sented, or submitted to an authority, recipi-
praisal pursuant to chapter 43 of such ent, or party when such claim is actually
title; and made to an agent, fiscal intermediary, or
(vii) may be removed, suspended, fur- other entity, including any State or political
loughed, or reduced in grade or pay only subdivision thereof, acting for or on behalf of
for good cause established and determined such authority, recipient, or party.
by the Merit Systems Protection Board on
the record after opportunity for hearing by (c) For purposes of paragraph (9) of subsection
such Board; or (a)—
(1) each written representation, certifi-
(C) a member of the board of contract ap-
cation, or affirmation constitutes a separate
peals pursuant to section 7105 of title 41, if
statement; and
the authority does not employ an available
(2) a statement shall be considered made,
presiding officer under subparagraph (A);
presented, or submitted to an authority when
(8) ‘‘reviewing official’’ means any officer or such statement is actually made to an agent,
employee of an authority— fiscal intermediary, or other entity, including
(A) who is designated by the authority any State or political subdivision thereof, act-
head to make the determination required ing for or on behalf of such authority.
under section 3803(a)(2) of this title;
(B) who, if a member of the Armed Forces (d) For purposes of subsection (a)(10), materi-
of the United States on active duty, is serv- ality shall be determined in the same manner as
ing in grade O–7 or above or, if a civilian em- under section 3729 of this title.
ployee, is serving in a position for which the (Added Pub. L. 99–509, title VI, § 6103(a), Oct. 21,
rate of basic pay is not less than the min- 1986, 100 Stat. 1934; amended Pub. L. 99–514, § 2,
imum rate of basic pay for grade GS–16 Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103–272,
under the General Schedule; and
§ 4(f)(1)(Q), July 5, 1994, 108 Stat. 1362; Pub. L.
(C) who is—
(i) not subject to supervision by, or re- 110–69, title VII, § 7017, Aug. 9, 2007, 121 Stat. 684;
quired to report to, the investigating offi- Pub. L. 110–409, § 10, Oct. 14, 2008, 122 Stat. 4314;
cial; and Pub. L. 117–286, § 4(b)(56), Dec. 27, 2022, 136 Stat.
(ii) not employed in the organizational 4349; Pub. L. 118–159, div. E, title LII, § 5203(b)(1),
unit of the authority in which the inves- (g)(1)(A), (i), Dec. 23, 2024, 138 Stat. 2440, 2442,
tigating official is employed; 2443.)
(9) ‘‘statement’’ means any representation, Editorial Notes
certification, affirmation, document, record,
or accounting or bookkeeping entry made— REFERENCES IN TEXT
(A) with respect to a claim or to obtain the The Internal Revenue Code of 1986, referred to in sub-
approval or payment of a claim (including sec. (a)(3), (9), is classified generally to Title 26, Inter-
relating to eligibility to make a claim); or nal Revenue Code.
(B) with respect to (including relating to
eligibility for)— AMENDMENTS
(i) a contract with, or a bid or proposal 2024—Subsec. (a)(3)(C). Pub. L. 118–159, § 5203(b)(1),
for a contract with; or amended subpar. (C) generally. Prior to amendment,
(ii) a grant, loan, or benefit from, subpar. (C) read as follows: ‘‘made to an authority
an authority, or any State, political subdivi- which has the effect of decreasing an obligation to pay
or account for property, services, or money,’’.
sion of a State, or other party, if the United
Subsec. (a)(7)(C). Pub. L. 118–159, § 5203(g)(1)(A), added
States Government provides any portion of subpar. (C).
the money or property under such contract Subsec. (a)(10), (11). Pub. L. 118–159, § 5203(i)(1), added
or for such grant, loan, or benefit, or if the pars. (10) and (11).
Government will reimburse such State, po- Subsec. (d). Pub. L. 118–159, § 5203(i)(2), added subsec.
litical subdivision, or party for any portion (d).
of the money or property under such con- 2022—Subsec. (a)(1)(C). Pub. L. 117–286, § 4(b)(56)(A),
tract or for such grant, loan, or benefit, substituted ‘‘section 401 of title 5)’’ for ‘‘section 11(2) of
the Inspector General Act of 1978)’’.
except that such term does not include any Subsec. (a)(1)(F). Pub. L. 117–286, § 4(b)(56)(B), sub-
statement made in any return of tax imposed stituted ‘‘section 415(a) of title 5)’’ for ‘‘section 8G(a)(2)
by the Internal Revenue Code of 1986; of the Inspector General Act of 1978)’’.
§ 3802 TITLE 31—MONEY AND FINANCE Page 350
Subsec. (a)(4)(A)(i). Pub. L. 117–286, § 4(b)(56)(C), sub- Schedule, to be considered references to rates payable
stituted ‘‘chapter 4 of title 5’’ for ‘‘the Inspector Gen- under specified sections of Title 5, Government Organi-
eral Act of 1978’’. zation and Employees, see section 529 [title I, § 101(c)(1)]
Subsec. (a)(4)(A)(ii). Pub. L. 117–286, § 4(b)(56)(D), sub- of Pub. L. 101–509, set out in a note under section 5376
stituted ‘‘chapter 4 of title 5’’ for ‘‘the Inspector Gen- of Title 5.
eral Act of 1978’’.
2008—Subsec. (a)(1)(F). Pub. L. 110–409 added subpar. CONGRESSIONAL FINDINGS AND PURPOSES
(F). Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6102,
2007—Subsec. (a)(1)(E). Pub. L. 110–69 added subpar. Oct. 21, 1986, 100 Stat. 1934, provided that:
(E). ‘‘(a) FINDINGS.—The Congress finds that—
1994—Subsec. (a)(7)(B)(ii). Pub. L. 103–272 substituted ‘‘(1) false, fictitious, and fraudulent claims and
‘‘section 3803 of this title’’ for ‘‘section 3803 of such statements in Government programs are a serious
title’’. problem;
1986—Subsec. (a)(3), (9). Pub. L. 99–514 substituted ‘‘(2) false, fictitious, and fraudulent claims and
‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue statements in Government programs result in the
Code of 1954’’. loss of millions of dollars annually by allowing per-
sons to receive Federal funds to which they are not
Statutory Notes and Related Subsidiaries entitled;
‘‘(3) false, fictitious, and fraudulent claims and
CHANGE OF NAME statements in Government programs undermine the
Pub. L. 118–159, div. E, title LII, § 5203(a)(2), Dec. 23, integrity of such programs by allowing ineligible per-
2024, 138 Stat. 2440, provided that: ‘‘Any reference to the sons to participate in such programs; and
Program Fraud Civil Remedies Act of 1986 in any provi- ‘‘(4) present civil and criminal remedies for such
sion of law, regulation, map, document, record, or claims and statements are not sufficiently respon-
other paper of the United States shall be deemed a ref- sive.
‘‘(b) PURPOSES.—The purposes of this subtitle [see
erence to the Administrative False Claims Act [see
Short Title note above] are—
Short Title note below].’’ ‘‘(1) to provide Federal agencies which are the vic-
EFFECTIVE DATE tims of false, fictitious, and fraudulent claims and
statements with an administrative remedy to rec-
Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6104, ompense such agencies for losses resulting from such
Oct. 21, 1986, 100 Stat. 1948, provided that: ‘‘This sub- claims and statements, to permit administrative pro-
title and the amendments made by this subtitle [see ceedings to be brought against persons who make,
Short Title note below] shall take effect on the date of present, or submit such claims and statements, and
enactment of this Act [Oct. 21, 1986], and shall apply to to deter the making, presenting, and submitting of
any claim or statement made, presented, or submitted such claims and statements in the future; and
on or after such date.’’ ‘‘(2) to provide due process protections to all per-
SHORT TITLE sons who are subject to the administrative adjudica-
tion of false, fictitious, or fraudulent claims or state-
Pub. L. 99–509, title VI, subtitle B (§§ 6101–6104), § 6101, ments.’’
Oct. 21, 1986, 100 Stat. 1934, as amended by Pub. L.
118–159, div. E, title LII, § 5203(a)(1)(B), Dec. 23, 2024, 138 § 3802. False claims and statements; liability
Stat. 2440, provided that: ‘‘This subtitle [enacting this
chapter, amending section 504 of Title 5, Government (a)(1) Any person who makes, presents, or sub-
Organization and Employees, and enacting provisions mits, or causes to be made, presented, or sub-
set out as notes under this section] may be cited as the mitted, a claim that the person knows or has
‘Administrative False Claims Act’.’’ reason to know—
(A) is false, fictitious, or fraudulent;
REGULATIONS
(B) includes or is supported by any written
Pub. L. 118–159, div. E, title LII, § 5203(g)(3), Dec. 23, statement which asserts a material fact which
2024, 138 Stat. 2443, provided that: ‘‘Not later than 180 is false, fictitious, or fraudulent;
days after the date of enactment of this Act [Dec. 23, (C) includes or is supported by any written
2024], each authority head, as defined in section 3801 of statement that—
title 31, United States Code, and each board of contract
(i) omits a material fact;
appeals of a board described in subparagraph (B), (C), or
(ii) is false, fictitious, or fraudulent as a
(D) of section 7105(e)[(1)] of title 41, United States Code,
shall amend procedures regarding proceedings as nec- result of such omission; and
essary to implement the amendments made by this sub- (iii) is a statement in which the person
section [amending this section, section 3803 of this making, presenting, or submitting such
title, and section 7105 of Title 41, Public Contracts].’’ statement has a duty to include such mate-
Pub. L. 118–159, div. E, title LII, § 5203(j), Dec. 23, 2024, rial fact; or
138 Stat. 2443, provided that: ‘‘Not later than 180 days
after the date of enactment of this Act [Dec. 23, 2024], (D) is for payment for the provision of prop-
each authority head, as defined in section 3801 of title erty or services which the person has not pro-
31, United States Code, shall— vided as claimed,
‘‘(1) promulgate regulations and procedures to shall be subject to, in addition to any other rem-
carry out this Act [probably should be ‘‘this section’’,
which amended this section, sections 3802, 3803, 3806,
edy that may be prescribed by law, a civil pen-
and 3808 of this title, section 405 of Title 5, Govern- alty of not more than $5,000 for each such claim.
ment Organization and Employees, and section 7105 of Except as provided in paragraph (3) of this sub-
Title 41, Public Contracts, and enacted and amended section, such person shall also be subject to an
provisions set out as notes under this section] and the assessment, in lieu of damages sustained by the
amendments made by this Act; and United States because of such claim, of not
‘‘(2) review and update existing regulations and pro- more than twice the amount of such claim, or
cedures of the authority to ensure compliance with
the portion of such claim, which is determined
this Act and the amendments made by this Act.’’
under this chapter to be in violation of the pre-
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY ceding sentence.
RATES (2) Any person who makes, presents, or sub-
References in laws to the rates of pay for GS–16, 17, mits, or causes to be made, presented, or sub-
or 18, or to maximum rates of pay under the General mitted, a written statement that—
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