Sec. 4006. Civil monetary penalties for violations related to grants, contracts, and other agreements

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Section 1128A of the Social Security Act ( 42 U.S.C. 1320a–7a ) is amended by adding at the end the following new subsection: Any person (including an organization, agency, or other entity, but excluding a program beneficiary, as defined in subsection (r)(4)) that, with respect to a grant, contract, or other agreement for which the Secretary of Health and Human Services provides funding— knowingly presents or causes to be presented a specified claim (as defined in subsection (r)(6)) under such grant, contract, or other agreement that the person knows or should know is false or fraudulent; knowingly makes, uses, or causes to be made or used any false statement, omission, or misrepresentation of a material fact in any application, proposal, bid, progress report, or other document that is required to be submitted in order to directly or indirectly receive or retain funds provided in whole or in part by such Secretary pursuant to such grant, contract, or other agreement; knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent specified claim under such grant, contract, or other agreement; knowingly makes, uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit funds or property to such Secretary with respect to such grant, contract, or other agreement, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit funds or property to such Secretary with respect to such grant, contract, or other agreement; or fails to grant timely access, upon reasonable request (as defined by such Secretary in regulations), to the Inspector General of the Department, for the purpose of audits, investigations, evaluations, or other statutory functions of such Inspector General in matters involving such grants, contracts, or other agreements; shall be subject, in addition to any other penalties that may be prescribed by law, to a civil money penalty in cases under paragraph (1), of not more than $10,000 for each specified claim; in cases under paragraph (2), not more than $50,000 for each false statement, omission, or misrepresentation of a material fact; in cases under paragraph (3), not more than $50,000 for each false record or statement; in cases under paragraph (4), not more than $50,000 for each false record or statement or $10,000 for each day that the person knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay; or in cases under paragraph (5), not more than $15,000 for each day of the failure described in such paragraph.

In addition, in cases under paragraphs

(1)and (3), such a person shall be subject to an assessment of not more than 3 times the amount claimed in the specified claim described in such paragraph in lieu of damages sustained by the United States or a specified State agency because of such specified claim, and in cases under paragraphs

(2)and (4), such a person shall be subject to an assessment of not more than 3 times the total amount of the funds described in paragraph

(2)or (4), respectively (or, in the case of an obligation to transmit property to the Secretary Health and Human Services described in paragraph (4), of the value of the property described in such paragraph) in lieu of damages sustained by the United States or a specified State agency because of such case. In addition, the Secretary of Health and Human Services may make a determination in the same proceeding to exclude the person from participation in the Federal health care programs (as defined in section 1128B(f)(1)) and to direct the appropriate State agency to exclude the person from participation in any State health care program. The provisions of subsections (c), (d), and

(g)shall apply to a civil money penalty or assessment under subsection

(o)in the same manner as such provisions apply to a penalty, assessment, or proceeding under subsection (a). With respect to a penalty or assessment under subsection (o), the Inspector General of the Department is authorized to receive, and to retain for current use, such amounts of such penalty or assessment as are necessary to provide reimbursement for the costs of conducting investigations and audits with respect to such subsection and for monitoring compliance plans with respect to such subsection when such penalty or assessment is ordered by a court, voluntarily agreed to by the payor, or otherwise. Funds received by such Inspector General as reimbursement under the preceding sentence shall be deposited to the credit of the appropriations from which initially paid, or to appropriations for similar purposes currently available at the time of deposit, and shall remain available for obligation for 1 year from the date of the deposit of such funds. For purposes of this subsection and subsections (o), (p), and (q): The term Department means the Department of Health and Human Services. The term material means having a natural tendency to influence, or be capable of influencing, the payment or receipt of money or property. The term other agreement includes a cooperative agreement, scholarship, fellowship, loan, subsidy, payment for a specified use, donation agreement, award, or sub-award (regardless of whether one or more of the persons entering into the agreement is a contractor or sub-contractor). The term program beneficiary means, in the case of a grant, contract, or other agreement designed to accomplish the objective of awarding or otherwise furnishing benefits or assistance to individuals and for which the Secretary of Health and Human Services provides funding, an individual who applies for, or who receives, such benefits or assistance from such grant, contract, or other agreement. Such term does not include, with respect to such grant, contract, or other agreement, an officer, employee, or agent of a person or entity that receives such grant or that enters into such contract or other agreement. The term recipient includes a sub-recipient or subcontractor. The term specified claim means any application, request, or demand under a grant, contract, or other agreement for money or property, whether or not the United States or a specified State agency has title to the money or property, that is not a claim (as defined in subsection (i)(2)) and that— is presented or caused to be presented to an officer, employee, or agent of the Department or agency thereof, or of any specified State agency; or is made to a contractor, grantee, or any other recipient if the money or property is to be spent or used on the Department’s behalf or to advance a Department program or interest, and if the Department— provides or has provided any portion of the money or property requested or demanded; or will reimburse such contractor, grantee or other recipient for any portion of the money or property which is requested or demanded. The term specified State agency means an agency of a State government established or designated to administer or supervise the administration of a grant, contract, or other agreement funded in whole or in part by the Secretary of Health and Human Services. For purposes of subsection (o), the term obligation means an established duty, whether or not fixed, arising from an express or implied contractual, grantor-grantee, or licensor-licensee relationship, for a fee-based or similar relationship, from statute or regulation, or from the retention of any overpayment. . Section 1128A of the Social Security Act ( 42 U.S.C. 1320a–7a ) is amended— in subsection (d)— in paragraph (1), by inserting or specified claims after claims ; and in paragraph (2), by inserting or specified claims after claims ; in subsection (e), by inserting or specified claim after claim ; and in subsection (f)— by inserting or specified claim (as defined in subsection (r)(6)) after district where the claim ; by inserting (or, with respect to a person described in subsection (o), the person) after claimant ; by inserting that are not received by the Inspector General of the Department of Health and Human Services under subsection

(q)as reimbursement after amounts recovered ; and by inserting (or, in the case of a penalty or assessment under subsection (o), by a specified State agency (as defined in subsection (r)(7)) after or a State agency .

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42 USC 1320a–7a

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Sec. 4006

Civil monetary penalties for violations related to grants, contracts, and other agreements

Cite42 USC 1320a–7a

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