Statement of Administration Policy: H.R. 4563 - False Claims Amendments Act of 1992

(House)
(Berman (D) California)

Under the False Claims Act, private individuals with first-hand information about fraud may sue on behalf of the United States and recover up to 30 percent of the judgment. Historically, Federal employees and former Federal employees who learn of fraud while on the job have been prohibited from filing such suits, known as qui tam actions. H.R. 4563 would allow Federal employees to recover portions of qui tam judgments.

The Administration strongly opposes H.R. 4563 because it would:

—   Reduce Government receipts without providing for an offset for purposes of the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act of 1990 (OBRA).

—   Give Government employees a financial interest to sue on their own behalf for performing duties that are already a part of their employment responsibilities. As a result, the bill would create an inherent conflict of interest and undermine public confidence in the Federal Government.

—   Allow some individuals to recover even when the only source of their information about the allegations was a Government audit, investigation, or report. This provision would cause premature filings, potentially impede active investigations, and further reduce recoveries to the Government. (Individuals currently can sue under the Act only if they have independent knowledge of the information underlying their allegations. They cannot sue if their information comes only from a Government audit, investigation or report.)

The Administration supports legislation that would prohibit Government employees from sharing in any civil monetary awards in qui tam suits.

Pay-As-You-Go Scoring

H.R. 4563 would reduce receipts; therefore, it is subject to the pay-as-you-go requirement of OBRA. No offsets to the direct spending increase are provided in the bill. A budget point of order applies in both the House and Senate against any bill that is not fully offset under CBO scoring. If, contrary to the Administration's recommendation, the House waives any such point of order that applies against H.R. 4563, the effects of enactment of this legislation would be included in a look back pay-as-you- go sequester report at the end of the Congressional session.

OMB's preliminary scoring estimates of this bill are presented in the table below. Final scoring of this legislation may deviate from these estimates. If H.R. 4563 were enacted, final OMB scoring estimates would be published within five days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending will be issued in monthly reports transmitted to the Congress.

ESTIMATES FOR PAY-AS-YOU-GO
(receipts in millions)