Title 31 — Money and Finance — § 3802. False claims and statements; liability
Summary
These pages (350 and 351) of Title 31 of the printed U.S. Code carry § 3802 of the law now cited as the Administrative False Claims Act, formerly the Program Fraud Civil Remedies Act of 1986. A person who submits a claim the person knows or has reason to know is false, fictitious or fraudulent faces a civil penalty of not more than $5,000 for each claim and an assessment of not more than twice the amount of the claim; a false written statement carrying a certification of its truthfulness draws the same penalty. No assessment is made on a claim the Government has not paid; a 2024 amendment (Pub. L. 118–159) added an exception for claims under section 3801(a)(3)(C). The notes reprint the 1986 congressional findings that false claims cause the loss of millions of dollars annually, and the pages carry the start of § 3803 on investigations and hearings.
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§ 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—
Page 351 TITLE 31—MONEY AND FINANCE § 3803
(A) the person knows or has reason to § 3803. Hearing and determinations
know—
(a)(1) The investigating official of an author-
(i) asserts a material fact which is false, ity may investigate allegations that a person is
fictitious, or fraudulent; or liable under section 3802 of this title and shall
(ii)(I) omits a material fact; and report the findings and conclusions of such in-
(II) is false, fictitious, or fraudulent as a vestigation to the reviewing official of the au-
result of such omission; thority. The preceding sentence does not modify
(B) in the case of a statement described in any responsibility of an investigating official to
clause (ii) of subparagraph (A), is a statement report violations of criminal law to the Attor-
in which the person making, presenting, or ney General.
submitting such statement has a duty to in- (2) If the reviewing official of an authority de-
clude such material fact; and termines, based upon the report of the inves-
(C) contains or is accompanied by an express tigating official under paragraph (1) of this sub-
certification or affirmation of the truthfulness section, that there is adequate evidence to be-
and accuracy of the contents of the statement, lieve that a person is liable under section 3802 of
this title, the reviewing official shall transmit
shall be subject to, in addition to any other rem- to the Attorney General a written notice of the
edy that may be prescribed by law, a civil pen- intention of such official to refer the allegations
alty of not more than $5,000 for each such state- of such liability to a presiding officer of such au-
ment. thority. Such notice shall include—
(3)(A) Except as provided in subparagraph (B), (A) a statement of the reasons of the review-
an assessment shall not be made under the sec- ing official for the referral of such allegations;
ond sentence of paragraph (1) with respect to a (B) a statement specifying the evidence
claim if payment by the Government has not which supports such allegations;
been made on such claim. (C) a description of the claims or statements
(B) In the case of a claim described in section for which liability under section 3802 of this
3801(a)(3)(C), an assessment shall not be made title is alleged;
under the second sentence of paragraph (1) in an (D) an estimate of the amount of money or
amount that is more than double the value of the value of property or services requested or
the property, services, or money that was demanded in violation of section 3802 of this
wrongfully withheld from the authority. title; and
(b)(1) Except as provided in paragraphs (2) and (E) a statement of any exculpatory or miti-
(3) of this subsection— gating circumstances which may relate to
(A) a determination under section 3803(a)(2) such claims or statements.
of this title that there is adequate evidence to (b)(1) Within 90 days after receipt of a notice
believe that a person is liable under subsection from a reviewing official under paragraph (2) of
(a) of this section; or subsection (a), the Attorney General or an As-
(B) a determination under section 3803 of sistant Attorney General designated by the At-
this title that a person is liable under sub- torney General shall transmit a written state-
section (a) of this section, ment to the reviewing official which specifies—
(A) that the Attorney General or such As-
may provide the authority with grounds for
sistant Attorney General approves or dis-
commencing any administrative or contractual
approves the referral to a presiding officer of
action against such person which is authorized
the allegations of liability stated in such no-
by law and which is in addition to any action
tice;
against such person under this chapter. (B) in any case in which the referral of alle-
(2) A determination referred to in paragraph gations is approved, that the initiation of a
(1) of this subsection may be used by the author- proceeding under this section with respect to
ity, but shall not require such authority, to such allegations is appropriate; and
commence any administrative or contractual (C) in any case in which the referral of alle-
action which is authorized by law. gations is disapproved, the reasons for such
(3) In the case of an administrative or contrac- disapproval.
tual action to suspend or debar any person who
is eligible to enter into contracts with the Fed- (2) A reviewing official may refer allegations
eral Government, a determination referred to in of liability to a presiding officer only if the At-
torney General or an Assistant Attorney Gen-
paragraph (1) of this subsection shall not be con-
eral designated by the Attorney General ap-
sidered as a conclusive determination of such
proves the referral of such allegations in a writ-
person’s responsibility pursuant to Federal pro-
ten statement described in paragraph (1) of this
curement laws and regulations.
subsection.
(Added Pub. L. 99–509, title VI, § 6103(a), Oct. 21, (3) If the Attorney General or an Assistant At-
1986, 100 Stat. 1937; amended Pub. L. 118–159, div. torney General designated by the Attorney Gen-
E, title LII, § 5203(b)(2), Dec. 23, 2024, 138 Stat. eral transmits to an authority head a written
2440.) finding that the continuation of any hearing
under this section with respect to a claim or
Editorial Notes statement may adversely affect any pending or
potential criminal or civil action related to such
AMENDMENTS claim or statement, such hearing shall be imme-
2024—Subsec. (a)(3). Pub. L. 118–159 designated exist- diately stayed and may be resumed only upon
ing provisions as subpar. (A), substituted ‘‘Except as written authorization of the Attorney General.
provided in subparagraph (B), an assessment’’ for ‘‘An (c)(1) No allegations of liability under section
assessment’’, and added subpar. (B). 3802 of this title with respect to any claim made,
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