False Claims Act amendments

(a) Clarification of the definition of claim Section 3729 of title 31, United States Code is amended by adding at the end the following: (e) Rule of construction A claim under this section includes any request or demand for money or property in which the money or property originates, in whole or in part, from funds appropriated or otherwise provided by the United States, including grant award funds distributed through a State, local government, or other intermediary.. (b) State financial liability involving Federal pass-Through funds Section 3729(b) of title 31, United States Code, is amended— (1) in paragraph (3), by striking; and and inserting a semicolon; (2) in paragraph (4), by striking the period and inserting; and; and (3) by adding at the end the following: (5) the term person — (A) except as provided in subparagraph (B), has the meaning given in that term in section 1 of title 1, United States Code; and (B) with respect to an action initiated by the Attorney General, includes a State or local government (or subdivision of a State).. (c) Mandatory accelerated clawback (1) In general Subchapter III of chapter 37 of title 31, United States Code, is amended by inserting after section 3730 the following: 3730A. Mandatory interim recovery of Federal funds (a) Remittance required (1) In general Not later than 180 days after written notice from the Attorney General or Inspector General with respect to the Attorney General initiating a civil action or intervening in a qui tam action under section 3730 involving Federal funds administered by a State or State agency, the State or State agency shall remit to the Treasury of the United States an amount equal to 100 percent of the amount of the Federal funds at issue in the civil action or qui tam action. (2) Escrow Any funds remitted under paragraph (1) shall be held in an escrow account until a final judgment or settlement is made and the time for appeal has expired or any appeal has terminated. (b) Disposition of escrow funds A remittance held in escrow under subsection (a) shall be— (1) returned to the general fund for the purposes of deficit reduction if the government prevails in the action or settles the claim; or (2) returned to the State or State agency if the action results in dismissal or a final judgment in favor of the defendant. (c) No Prejudgment No remittance under subsection (a) shall be construed as an admission of liability or guilt or have any other bearing on the civil action or its outcome. (d) Mandatory The remittance obligation under subsection (a) is mandatory and cannot be waived except by Act of Congress.. (2) Clerical amendment The table of sections for subchapter III of chapter 37 of title 31, United States Code, is amended by inserting after the item for section 3730 the following: 3730A. Mandatory interim recovery of Federal funds..