S. 1286Senate108th Congress (2003-2005)In Committee

Seniors Safety Act of 2003

Introduced June 18, 2003

Legislative Activity

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3 earlier actions
SenateIntro Referral Latest Action

Sponsor introductory remarks on measure. (CR S8667)

July 22, 2004

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SenateIntro Referral

Introduced in Senate

June 18, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S8153-8154)

June 18, 2003

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S8154-8159)

June 18, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S8667)

July 22, 2004

Floor Debate

14 members

What members said about S. 1286 on the floor

9 Republicans5 Democrats
Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jul 22, 2004

Mr. President, I am pleased to introduce with Senator Hatch the Department of Justice Appropriations Authorization Act, Fiscal Years 2005 through 2007. I thank Senator Hatch, the chairman of the…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Sep 29, 2004

Mr. President, I am pleased to introduce with Senator Hatch the ``Department of Justice Appropriations Authorization Act, fiscal years 2005 through 2007.'' I thank Senator Hatch, the Chairman of the…

Bob Graham
Sen. Bob GrahamD-FL · Jun 18, 2003

Madam President, today I introduce legislation that would take one more step toward finding answers for veterans who may have been exposed to radiation, Agent Orange, or other hazards during their…

Thomas R. Carper
Sen. Thomas R. CarperD-DE · Jun 18, 2003

Madam President, I rise today to introduce the Postal Accountability and Enhancement Act of 2003, legislation that makes the reforms necessary for the Postal Service to thrive in the 21st Century and…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 18, 2003

Madam President, today I am introducing the Seniors Safety Act of 2003, a bill to protect older Americans from crime. I am pleased to have Senators Daschle, Kennedy, Feingold, and Bingaman as…

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Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 18, 2003

Madam President, today I am introducing the Seniors Safety Act of 2003, a bill to protect older Americans from crime. I am pleased to have Senators Daschle, Kennedy, Feingold, and Bingaman as…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Sep 29, 2004

Mr. President, I rise today along with my colleagues Senators Leahy, DeWine, and Schumer to introduce the ``Department of Justice Appropriations Authorization Act, fiscal years 2005 through 2007.'' I…

Judd Gregg
Sen. Judd GreggR-NH · Sep 29, 2004

Mr. President, military action in Afghanistan and Iraq has brought to light another example of how outdated and burdensome government policies can punish generous employers. Employers that continue…

Joseph R. Biden Jr.
Sen. Joseph R. Biden Jr.D-DE · Jun 18, 2003

Mr. President, I rise to introduce the Law Enforcement Discipline, Accountability, and Due Process Act of 2003, along with the Chairman of the Judiciary Subcommittee on Crime, Corrections and…

Rick Santorum
Sen. Rick SantorumR-PA · Sep 29, 2004

Mr. President, today I am introducing along with Senator Rockefeller the Fire Sprinkler Incentive Act of 2004. Passage of this bipartisan bill would serve to help reduce the tremendous annual…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · Jun 18, 2003

Madam President, I rise today to introduce a bill that will amend Title V of the Higher Education Act. Specifically, this bill will eliminate the ``50 percent'' low-income assurance constraint…

Lisa Murkowski
Sen. Lisa MurkowskiR-AK · Sep 29, 2004

Mr. President, it is a fact that scientists, the media and the public are gradually awakening to the serious disadvantages of fish raised in fish farming operations compared to naturally healthy wild…

Saxby Chambliss
Sen. Saxby ChamblissR-GA · Jun 18, 2003

Madam President, I rise today to introduce legislation, along with my colleague Senator Miller of Georgia, that would amend the Medicare portion of the Social Security Act to exclude brachytherapy…

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James M. Inhofe
Sen. James M. InhofeR-OK · Sep 29, 2004

Mr. President, I rise today to proudly introduce the Commodity Assessment Protection and Reform Act. This legislation fixes a potential problem for our wheat producers in the State of Oklahoma as…

John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Sep 29, 2004

Mr. President, every 18 seconds a fire department somewhere in America responds to a fire. And sadly, in 2001, not including those killed in the terrorist attacks on September 11, there were almost…

George V. Voinovich
Sen. George V. VoinovichR-OH · Jun 18, 2003

Mr. President, I ask unanimous consent that the text of the Disaster Area and Health and Environmental Monitoring Act of 2003 be printed in the Record.

Chuck Grassley
Sen. Chuck GrassleyR-IA · Sep 29, 2004

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued June 18, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1286 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1286

To combat nursing home fraud and abuse, increase protections for
victims of telemarketing fraud, enhance safeguards for pension plans
and health care benefit programs, and enhance penalties for crimes
against seniors, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 18, 2003

Mr. Leahy (for himself, Mr. Daschle, Mr. Kennedy, Mr. Feingold, and Mr.
Bingaman) introduced the following bill; which was read twice and
referred to the Committee on the Judiciary

_______________________________________________________________________

A BILL

To combat nursing home fraud and abuse, increase protections for
victims of telemarketing fraud, enhance safeguards for pension plans
and health care benefit programs, and enhance penalties for crimes
against seniors, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Seniors Safety Act
of 2003''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I--COMBATING CRIMES AGAINST SENIORS

Sec. 101. Enhanced sentencing penalties based on age of victim.
Sec. 102. Study and report on health care fraud sentences.
Sec. 103. Increased penalties for fraud resulting in serious injury or
death.
Sec. 104. Safeguarding pension plans from fraud and theft.
Sec. 105. Additional civil penalties for defrauding pension plans.
Sec. 106. Punishing bribery and graft in connection with employee
benefit plans.
TITLE II--PREVENTING TELEMARKETING FRAUD

Sec. 201. Centralized complaint and consumer education service for
victims of telemarketing fraud.
Sec. 202. Blocking of telemarketing scams.
TITLE III--PREVENTING HEALTH CARE FRAUD

Sec. 301. Injunctive authority relating to false claims and illegal
kickback schemes involving Federal health
care programs.
Sec. 302. Authorized investigative demand procedures.
Sec. 303. Extending antifraud safeguards to the Federal employee health
benefits program.
Sec. 304. Grand jury disclosure.
Sec. 305. Increasing the effectiveness of civil investigative demands
in false claims investigations.
TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

Sec. 401. Short title.
Sec. 402. Nursing home resident protection.
TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

Sec. 501. Use of forfeited funds to pay restitution to crime victims
and regulatory agencies.
Sec. 502. Victim restitution.
Sec. 503. Bankruptcy proceedings not used to shield illegal gains from
false claims.
Sec. 504. Forfeiture for retirement offenses.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress makes the following findings:
(1) The number of older Americans is rapidly growing in the
United States. According to the 2000 census, 21 percent of the
United States population is 55 years of age or older.
(2) In 1997, 7 percent of victims of serious violent crime
were 50 years of age or older.
(3) In 1997, 17.7 percent of murder victims were 55 years
of age or older.
(4) According to the Department of Justice, persons 65
years of age and older experienced approximately 2,700,000
crimes a year between 1992 and 1997.
(5) Older victims of violent crime are almost twice as
likely as younger victims to be raped, robbed, or assaulted at
or in their own homes.
(6) Approximately half of all Americans who are 50 years of
age or older are afraid to walk alone at night in their own
neighborhoods.
(7) Seniors over 50 years of age reportedly account for 37
percent of the estimated $40,000,000,000 in losses each year
due to telemarketing fraud.
(8) A 1996 American Association of Retired Persons survey
of people 50 years of age and older showed that 57 percent were
likely to receive calls from telemarketers at least once a
week.
(9) In 1998, Congress enacted legislation to provide for
increased penalties for telemarketing fraud that targets
seniors.
(10) It has been estimated that--
(A) approximately 43 percent of persons turning 65
years of age can expect to spend some time in a long-
term care facility; and
(B) approximately 20 percent can expect to spend 5
years or more in such a facility.
(11) In 1997, approximately $82,800,000,000 was spent on
nursing home care in the United States and over half of this
amount was spent by the Medicaid and Medicare programs.
(12) Losses to fraud and abuse in health care reportedly
cost the United States an estimated $100,000,000,000 in 1996.
(13) The Inspector General for the Department of Health and
Human Services has estimated that about $12,600,000,000 in
improper Medicare benefit payments, due to inadvertent mistake,
fraud, and abuse were made during fiscal year 1998.
(14) Incidents of health care fraud and abuse remain common
despite awareness of the problem.
(b) Purposes.--The purposes of this Act are to--
(1) combat nursing home fraud and abuse;
(2) enhance safeguards for pension plans and health care
programs;
(3) develop strategies for preventing and punishing crimes
that target or otherwise disproportionately affect seniors by
collecting appropriate data--
(A) to measure the extent of crimes committed
against seniors; and
(B) to determine the extent of domestic and elder
abuse of seniors; and
(4) prevent and deter criminal activity, such as
telemarketing fraud, that results in economic and physical harm
against seniors, and ensure appropriate restitution.

SEC. 3. DEFINITIONS.

In this Act:
(1) Crime.--The term ``crime'' means any criminal offense
under Federal or State law.
(2) Nursing home.--The term ``nursing home'' means any
institution or residential care facility defined as such for
licensing purposes under State law, or if State law does not
employ the term nursing home, the equivalent term or terms as
determined by the Secretary of Health and Human Services,
pursuant to section 1908(e) of the Social Security Act (42
U.S.C. 1396g(e)).
(3) Senior.--The term ``senior'' means an individual who is
more than 55 years of age.

TITLE I--COMBATING CRIMES AGAINST SENIORS

SEC. 101. ENHANCED SENTENCING PENALTIES BASED ON AGE OF VICTIM.

(a) Directive to the United States Sentencing Commission.--Pursuant
to its authority under section 994(p) of title 28, United States Code,
and in accordance with this section, the United States Sentencing
Commission (referred to in this section as the ``Commission'') shall
review and, if appropriate, amend section 3A1.1(a) of the Federal
sentencing guidelines to include the age of a crime victim as one of
the criteria for determining whether the application of a sentencing
enhancement is appropriate.
(b) Requirements.--In carrying out this section, the Commission
shall--
(1) ensure that the Federal sentencing guidelines and the
policy statements of the Commission reflect the serious
economic and physical harms associated with criminal activity
targeted at seniors due to their particular vulnerability;
(2) consider providing increased penalties for persons
convicted of offenses in which the victim was a senior in
appropriate circumstances;
(3) consult with individuals or groups representing
seniors, law enforcement agencies, victims organizations, and
the Federal judiciary as part of the review described in
subsection (a);
(4) ensure reasonable consistency with other Federal
sentencing guidelines and directives;
(5) account for any aggravating or mitigating circumstances
that may justify exceptions, including circumstances for which
the Federal sentencing guidelines provide sentencing enhancements;
(6) make any necessary conforming changes to the Federal
sentencing guidelines; and
(7) ensure that the Federal sentencing guidelines
adequately meet the purposes of sentencing set forth in section
3553(a)(2) of title 18, United States Code.
(c) Report.--Not later than December 31, 2004, the Commission shall
submit to Congress a report on issues relating to the age of crime
victims, which shall include--
(1) an explanation of any changes to sentencing policy made
by the Commission under this section; and
(2) any recommendations of the Commission for retention or
modification of penalty levels, including statutory penalty
levels, for offenses involving seniors.

SEC. 102. STUDY AND REPORT ON HEALTH CARE FRAUD SENTENCES.

(a) Directive to the United States Sentencing Commission.--Pursuant
to its authority under section 994(p) of title 28, United States Code,
and in accordance with this section, the United States Sentencing
Commission (referred to in this section as the ``Commission'') shall
review and, if appropriate, amend the Federal sentencing guidelines and
the policy statements of the Commission with respect to persons
convicted of offenses involving fraud in connection with a health care
benefit program (as defined in section 24(b) of title 18, United States
Code).
(b) Requirements.--In carrying out this section, the Commission
shall--
(1) ensure that the Federal sentencing guidelines and the
policy statements of the Commission reflect the serious harms
associated with health care fraud and the need for aggressive
and appropriate law enforcement action to prevent such fraud;
(2) consider providing increased penalties for persons
convicted of health care fraud in appropriate circumstances;
(3) consult with individuals or groups representing victims
of health care fraud, law enforcement agencies, the health care
industry, and the Federal judiciary as part of the review
described in subsection (a);
(4) ensure reasonable consistency with other Federal
sentencing guidelines and directives;
(5) account for any aggravating or mitigating circumstances
that might justify exceptions, including circumstances for
which the Federal sentencing guidelines provide sentencing
enhancements;
(6) make any necessary conforming changes to the Federal
sentencing guidelines; and
(7) ensure that the Federal sentencing guidelines
adequately meet the purposes of sentencing as set forth in
section 3553(a)(2) of title 18, United States Code.
(c) Report.--Not later than December 31, 2004, the Commission shall
submit to Congress a report on issues relating to offenses described in
subsection (a), which shall include--
(1) an explanation of any changes to sentencing policy made
by the Commission under this section; and
(2) any recommendations of the Commission for retention or
modification of penalty levels, including statutory penalty
levels, for those offenses.

SEC. 103. INCREASED PENALTIES FOR FRAUD RESULTING IN SERIOUS INJURY OR
DEATH.

Sections 1341 and 1343 of title 18, United States Code, are each
amended by inserting before the last sentence the following: ``If the
violation results in serious bodily injury (as defined in section
1365), such person shall be fined under this title, imprisoned not more
than 20 years, or both, and if the violation results in death, such
person shall be fined under this title, imprisoned for any term of
years or life, or both.''.

SEC. 104. SAFEGUARDING PENSION PLANS FROM FRAUD AND THEFT.

(a) In General.--Chapter 63 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 1351. Fraud in relation to retirement arrangements
``(a) Definition.--
``(1) Retirement arrangement.--In this section, the term
`retirement arrangement' means--
``(A) any employee pension benefit plan subject to
any provision of title I of the Employee Retirement
Income Security Act of 1974;
``(B) any qualified retirement plan within the
meaning of section 4974(c) of the Internal Revenue Code
of 1986;
``(C) any medical savings account described in
section 220 of the Internal Revenue Code of 1986; or
``(D) a fund established within the Thrift Savings
Fund by the Federal Retirement Thrift Investment Board
pursuant to subchapter III of chapter 84 of title 5.
``(2) Certain arrangements included.--The term `retirement
arrangement' shall include any arrangement that has been
represented to be an arrangement described in any subparagraph
of paragraph (1) (whether or not so described).
``(3) Exception for governmental plan.--Except as provided
in paragraph (1)(D), the term `retirement arrangement' shall
not include any governmental plan (as defined in section 3(32)
of title I of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002(32))).
``(b) Prohibition and Penalties.--Whoever executes, or attempts to
execute, a scheme or artifice--
``(1) to defraud any retirement arrangement or other person
in connection with the establishment or maintenance of a
retirement arrangement; or
``(2) to obtain, by means of false or fraudulent pretenses,
representations, or promises, any of the money or property
owned by, or under the custody or control of, any retirement
arrangement or other person in connection with the
establishment or maintenance of a retirement arrangement;
shall be fined under this title, imprisoned not more than 10 years, or
both.
``(c) Enforcement.--
``(1) In general.--Subject to paragraph (2), the Attorney
General may investigate any violation of, and otherwise
enforce, this section.
``(2) Effect on other authority.--Nothing in this
subsection may be construed to preclude the Secretary of Labor
or the head of any other appropriate Federal agency from
investigating a violation of this section in relation to a
retirement arrangement subject to title I of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.)
or any other provision of Federal law.''.
(b) Technical Amendment.--Section 24(a)(1) of title 18, United
States Code, is amended by inserting ``1351,'' after ``1347,''.
(c) Conforming Amendment.--The analysis for chapter 63 of title 18,
United States Code, is amended by adding at the end the following:

``1351. Fraud in relation to retirement arrangements.''.

SEC. 105. ADDITIONAL CIVIL PENALTIES FOR DEFRAUDING PENSION PLANS.

(a) In General.--
(1) Action by attorney general.--Except as provided in
subsection (b)--
(A) the Attorney General may bring a civil action
in the appropriate district court of the United States
against any person who engages in conduct constituting
an offense under section 1351 of title 18, United
States Code, or conspiracy to violate such section
1351; and
(B) upon proof of such conduct by a preponderance
of the evidence, such person shall be subject to a
civil penalty in an amount equal to the greatest of--
(i) the amount of pecuniary gain to that
person;
(ii) the amount of pecuniary loss sustained
by the victim; or
(iii) not more than--
(I) $50,000 for each such violation
in the case of an individual; or
(II) $100,000 for each such
violation in the case of a person other
than an individual.
(2) No effect on other remedies.--The imposition of a civil
penalty under this subsection does not preclude any other
statutory, common law, or administrative remedy available by
law to the United States or any other person.
(b) Exception.--No civil penalty may be imposed pursuant to
subsection (a) with respect to conduct involving a retirement
arrangement that--
(1) is an employee pension benefit plan subject to title I
of the Employee Retirement Income Security Act of 1974; and
(2) for which the civil penalties may be imposed under
section 502 of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1132).
(c) Determination of Penalty Amount.--In determining the amount of
the penalty under subsection (a), the district court may consider the
effect of the penalty on the violator or other person's ability to--
(1) restore all losses to the victims; or
(2) provide other relief ordered in another civil or
criminal prosecution related to such conduct, including any
penalty or tax imposed on the violator or other person pursuant
to the Internal Revenue Code of 1986.

SEC. 106. PUNISHING BRIBERY AND GRAFT IN CONNECTION WITH EMPLOYEE
BENEFIT PLANS.

(a) In General.--Section 1954 of title 18, United States Code, is
amended to read as follows:
``Sec. 1954. Bribery and graft in connection with employee benefit
plans
``(a) Definitions.--In this section--
``(1) the term `employee benefit plan' means any employee
welfare benefit plan or employee pension benefit plan subject
to any provision of title I of the Employee Retirement Income
Security Act of 1974;
``(2) the terms `employee organization', `administrator',
and `employee benefit plan sponsor' mean any employee
organization, administrator, or plan sponsor, as defined in
title I of the Employment Retirement Income Security Act of
1974; and
``(3) the term `applicable person' means--
``(A) an administrator, officer, trustee,
custodian, counsel, agent, or employee of any employee
benefit plan;
``(B) an officer, counsel, agent, or employee of an
employer or an employer any of whose employees are
covered by such plan;
``(C) an officer, counsel, agent, or employee of an
employee organization any of whose members are covered
by such plan;
``(D) a person who, or an officer, counsel, agent,
or employee of an organization that, provides benefit
plan services to such plan; or
``(E) a person with actual or apparent influence or
decisionmaking authority in regard to such plan.
``(b) Bribery and Graft.--Whoever--
``(1) being an applicable person, receives or agrees to
receive or solicits, any fee, kickback, commission, gift, loan,
money, or thing of value, personally or for any other person,
because of or with the intent to be corruptly influenced with
respect to any action, decision, or duty of that applicable
person relating to any question or matter concerning an
employee benefit plan;
``(2) directly or indirectly, gives or offers, or promises
to give or offer, any fee, kickback, commission, gift, loan,
money, or thing of value, to any applicable person, because of
or with the intent to be corruptly influenced with respect to
any action, decision, or duty of that applicable person
relating to any question or matter concerning an employee
benefit plan; or
``(3) attempts to give, accept, or receive any thing of
value with the intent to be corruptly influenced in violation
of this section;
shall be fined under this title, imprisoned not more than 5 years, or
both.
``(c) Exceptions.--Nothing in this section may be construed to
apply to any--
``(1) payment to, or acceptance by, any person of bona fide
salary, compensation, or other payments made for goods or
facilities actually furnished or for services actually
performed in the regular course of his duties as an applicable
person; or
``(2) payment to, or acceptance in good faith by, any
employee benefit plan sponsor, or person acting on behalf of
the sponsor, of anything of value relating to the decision or
action of the sponsor to establish, terminate, or modify the
governing instruments of an employee benefit plan in a manner
that does not violate--
``(A) title I of the Employee Retirement Income
Security Act of 1974;
``(B) any regulation or order promulgated under
title I of the Employee Retirement Income Security Act
of 1974; or
``(C) any other provision of law governing the
plan.''.
(b) Conforming Amendment.--The analysis for chapter 95 of title 18,
United States Code, is amended by striking the item relating to section
1954 and inserting the following:

``1954. Bribery and graft in connection with employee benefit plans.''.

TITLE II--PREVENTING TELEMARKETING FRAUD

SEC. 201. CENTRALIZED COMPLAINT AND CONSUMER EDUCATION SERVICE FOR
VICTIMS OF TELEMARKETING FRAUD.

(a) Centralized Service.--
(1) Requirement.--The Federal Trade Commission shall, after
consultation with the Attorney General, establish procedures
to--
(A) log the receipt of complaints by individuals
who claim that they have been the victim of fraud in
connection with the conduct of telemarketing (as that
term is defined in section 2325 of title 18, United
States Code, as amended by section 202(a) of this Act);
(B) provide to individuals described in
subparagraph (A), and to any other persons, if
requested, information on telemarketing fraud,
including--
(i) general information on telemarketing
fraud, including descriptions of the most
common telemarketing fraud schemes;
(ii) information on means of referring
complaints on telemarketing fraud to
appropriate law enforcement agencies, including
the Director of the Federal Bureau of
Investigation, the attorneys general of the
States, and the national toll-free telephone
number on telemarketing fraud established by
the Attorney General; and
(iii) information, if available, on any
record of civil or criminal law enforcement
action for telemarketing fraud against a
particular company for which a specific request
has been made; and
(C) refer complaints described in subparagraph (A),
as appropriate, to law enforcement authorities,
including State consumer protection agencies or
entities, for potential action.
(2) Commencement.--The Federal Trade Commission shall
commence carrying out the service not later than 1 year after
the date of enactment of this Act.
(b) Fraud Conviction Data.--
(1) Entry of information on convictions into ftc
database.--The Attorney General shall provide information on
the corporations and companies that are the subject of civil or
criminal law enforcement action for telemarketing fraud under
Federal and State law to the Federal Trade Commission in such
electronic format as will enable the Federal Trade Commission
to automatically enter the information into a database
maintained in accordance with subsection (a).
(2) Information.--The information described in paragraph
(1) shall include a description of the type and method of the
fraud scheme that prompted the law enforcement action against
each such corporation or company.
(3) Use of database.--The Attorney General shall make
information in the database available to the Federal Trade
Commission for purposes of providing information as part of the
service under subsection (a).
(c) Authorization of Appropriations.--There is authorized to be
appropriated such sums as may be necessary to carry out this section.

SEC. 202. BLOCKING OF TELEMARKETING SCAMS.

(a) Expansion of Scope of Telemarketing Fraud Subject to Enhanced
Criminal Penalties.--Section 2325(1) of title 18, United States Code,
is amended by striking ``telephone calls'' and inserting ``wire
communications utilizing a telephone service''.
(b) Blocking or Termination of Telephone Service Associated With
Telemarketing Fraud.--
(1) In general.--Chapter 113A of title 18, United States
Code, is amended by adding at the end the following:
``Sec. 2328. Blocking or termination of telephone service
``(a) Definitions.--In this section:
``(1) Reasonable notice to the subscriber.--
``(A) In general.--The term `reasonable notice to
the subscriber', in the case of a subscriber of a
common carrier, means any information necessary to
provide notice to the subscriber that--
``(i) the wire communications facilities
furnished by the common carrier may not be used
for the purpose of transmitting, receiving,
forwarding, or delivering a wire communication
in interstate or foreign commerce for the
purpose of executing any scheme or artifice to
defraud in connection with the conduct of
telemarketing; and
``(ii) such use constitutes sufficient
grounds for the immediate discontinuance or
refusal of the leasing, furnishing, or
maintaining of the facilities to or for the
subscriber.
``(B) Included matter.--The term includes any
tariff filed by the common carrier with the Federal
Communications Commission that contains the information
specified in subparagraph (A).
``(2) Wire communication.--The term `wire communication'
has the same meaning given that term in section 2510(1).
``(3) Wire communications facility.--The term `wire
communications facility' means any facility (including
instrumentalities, personnel, and services) used by a common
carrier for purposes of the transmission, receipt, forwarding,
or delivery of wire communications.
``(b) Blocking or Terminating Telephone Service.--If a common
carrier subject to the jurisdiction of the Federal Communications
Commission is notified in writing by the Attorney General, acting
within the jurisdiction of the Attorney General, that any wire
communications facility furnished by that common carrier is being used
or will be used by a subscriber for the purpose of transmitting or
receiving a wire communication in interstate or foreign commerce for
the purpose of executing any scheme or artifice to defraud, or for
obtaining money or property by means of false or fraudulent pretenses,
representations, or promises, in connection with the conduct of
telemarketing, the common carrier shall discontinue or refuse the
leasing, furnishing, or maintaining of the facility to or for the
subscriber after reasonable notice to the subscriber.
``(c) Prohibition on Damages.--No damages, penalty, or forfeiture,
whether civil or criminal, shall be found or imposed against any common
carrier for any act done by the common carrier in compliance with a
notice received from the Attorney General under this section.
``(d) Relief.--
``(1) In general.--Nothing in this section may be construed
to prejudice the right of any person affected thereby to secure
an appropriate determination, as otherwise provided by law, in
a Federal court, that--
``(A) the leasing, furnishing, or maintaining of a
facility should not be discontinued or refused under
this section; or
``(B) the leasing, furnishing, or maintaining of a
facility that has been so discontinued or refused
should be restored.
``(2) Supporting information.--In any action brought under
this subsection, the court may direct that the Attorney General
present evidence in support of the notice made under subsection
(b) to which such action relates.''.
(2) Conforming amendment.--The analysis for chapter 113A of
title 18, United States Code, is amended by adding at the end
the following:

``2328. Blocking or termination of telephone service.''.

TITLE III--PREVENTING HEALTH CARE FRAUD

SEC. 301. INJUNCTIVE AUTHORITY RELATING TO FALSE CLAIMS AND ILLEGAL
KICKBACK SCHEMES INVOLVING FEDERAL HEALTH CARE PROGRAMS.

(a) In General.--Section 1345(a) of title 18, United States Code,
is amended--
(1) in paragraph (1)--
(A) in subparagraph (B), by striking ``, or'' and
inserting a semicolon;
(B) in subparagraph (C), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(D) committing or about to commit an offense under
section 1128B of the Social Security Act (42 U.S.C. 1320a-
7b);''; and
(2) in paragraph (2), by inserting ``a violation of
paragraph (1)(D),'' before ``a banking''.
(b) Civil Actions.--
(1) In general.--Section 1128B of the Social Security Act
(42 U.S.C. 1320a-7b) is amended by adding at the end the
following:
``(g) Civil Actions.--
``(1) In general.--The Attorney General may bring an action
in the appropriate district court of the United States to
impose upon any person who carries out any activity in
violation of this section with respect to a Federal health care
program a civil penalty of not more than $50,000 for each such
violation, or damages of 3 times the total remuneration
offered, paid, solicited, or received, whichever is greater.
``(2) Existence of violation.--A violation exists under
paragraph (1) if 1 or more purposes of the remuneration is
unlawful, and the damages shall be the full amount of such
remuneration.
``(3) Procedures.--An action under paragraph (1) shall be
governed by--
``(A) the procedures with regard to subpoenas,
statutes of limitations, standards of proof, and
collateral estoppel set forth in section 3731 of title
31, United States Code; and
``(B) the Federal Rules of Civil Procedure.
``(4) No effect on other remedies.--Nothing in this section
may be construed to affect the availability of any other
criminal or civil remedy.
``(h) Injunctive Relief.--The Attorney General may commence a civil
action in an appropriate district court of the United States to enjoin
a violation of this section, as provided in section 1345 of title 18,
United States Code.''.
(2) Conforming amendment.--The heading of section 1128B of
the Social Security Act (42 U.S.C. 1320a-7b) is amended by
inserting ``AND CIVIL'' after ``CRIMINAL''.

SEC. 302. AUTHORIZED INVESTIGATIVE DEMAND PROCEDURES.

Section 3486 of title 18, United States Code, is amended--
(1) in subsection (a), by inserting ``, or any allegation
of fraud or false claims (whether criminal or civil) in
connection with a Federal health care program (as defined in
section 1128B(f) of the Social Security Act (42 U.S.C. 1320a-
7b(f))),'' after ``Federal health care offense'' each place it
appears; and
(2) by adding at the end the following:
``(f) Privacy Protection.--
``(1) In general.--Except as provided in paragraph (2), any
record (including any book, paper, document, electronic medium,
or other object or tangible thing) produced pursuant to a
subpoena issued under this section that contains personally
identifiable health information may not be disclosed to any
person, except pursuant to a court order under subsection
(e)(1).
``(2) Exceptions.--A record described in paragraph (1) may
be disclosed--
``(A) to an attorney for the Government for use in
the performance of the official duty of the attorney
(including presentation to a Federal grand jury);
``(B) to government personnel (including personnel
of a State or subdivision of a State) as are determined
to be necessary by an attorney for the Government to
assist an attorney for the Government in the
performance of the official duty of that attorney to
enforce Federal criminal law;
``(C) as directed by a court preliminarily to, or
in connection with, a judicial proceeding;
``(D) as permitted by a court at the request of a
defendant in an administrative, civil, or criminal
action brought by the United States, upon a showing
that grounds may exist for a motion to exclude evidence
obtained under this section; or
``(E) at the request of an attorney for the
Government, upon a showing that such matters may
disclose a violation of State criminal law, to an
appropriate official of a State or subdivision of a
State for the purpose of enforcing such law.
``(3) Manner of court ordered disclosures.--
``(A) In general.--Except as provided in
subparagraph (B), if a court orders the disclosure of
any record described in paragraph (1), the disclosure--
``(i) shall be made in such manner, at such
time, and under such conditions as the court
may direct; and
``(ii) shall be undertaken in a manner that
preserves the confidentiality and privacy of
individuals who are the subject of the record.
``(B) Exception.--If disclosure is required by the
nature of the proceedings, the attorney for the
Government shall request that the presiding judicial or
administrative officer enter an order limiting the
disclosure of the record to the maximum extent
practicable, including redacting the personally
identifiable health information from publicly disclosed
or filed pleadings or records.
``(4) Destruction of records.--Any record described in
paragraph (1), and all copies of that record, in whatever form
(including electronic), shall be destroyed not later than 90
days after the date on which the record is produced, unless
otherwise ordered by a court of competent jurisdiction, upon a
showing of good cause.
``(5) Effect of violation.--Any person who knowingly fails
to comply with this subsection may be punished as in contempt
of court.
``(g) Personally Identifiable Health Information Defined.--In this
section, the term `personally identifiable health information' means
any information, including genetic information, demographic
information, and tissue samples collected from an individual, whether
oral or recorded in any form or medium, that--
``(1) relates to the past, present, or future physical or
mental health or condition of an individual, the provision of
health care to an individual, or the past, present, or future
payment for the provision of health care to an individual; and
``(2) either--
``(A) identifies an individual; or
``(B) with respect to which there is a reasonable
basis to believe that the information can be used to
identify an individual.''.

SEC. 303. EXTENDING ANTIFRAUD SAFEGUARDS TO THE FEDERAL EMPLOYEE HEALTH
BENEFITS PROGRAM.

Section 1128B(f)(1) of the Social Security Act (42 U.S.C. 1320a-
7b(f)(1)) is amended by striking ``(other than the health insurance
program under chapter 89 of title 5, United States Code)''.

SEC. 304. GRAND JURY DISCLOSURE.

Section 3322 of title 18, United States Code, is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Grand Jury Disclosure.--Subject to section 3486(f), upon ex
parte motion of an attorney for the Government showing that a
disclosure in accordance with that subsection would be of assistance to
enforce any provision of Federal law, a court may direct the disclosure
of any matter occurring before a grand jury during an investigation of
a Federal health care offense (as defined in section 24(a) of this
title) to an attorney for the Government to use in any investigation or
civil proceeding relating to fraud or false claims in connection with a
Federal health care program (as defined in section 1128B(f) of the
Social Security Act (42 U.S.C. 1320a-7b(f))).''.

SEC. 305. INCREASING THE EFFECTIVENESS OF CIVIL INVESTIGATIVE DEMANDS
IN FALSE CLAIMS INVESTIGATIONS.

Section 3733 of title 31, United States Code, is amended--
(1) in subsection (a)(1), in the second sentence, by
inserting ``, except to the Deputy Attorney General or to an
Assistant Attorney General'' before the period at the end; and
(2) in subsection (i)(2)(C), by adding at the end the
following: ``Disclosure of information to a person who brings a
civil action under section 3730, or the counsel of that person,
shall be allowed only upon application to a United States
district court showing that such disclosure would assist the
Department of Justice in carrying out its statutory
responsibilities.''.

TITLE IV--PROTECTING RESIDENTS OF NURSING HOMES

SEC. 401. SHORT TITLE.

This title may be cited as the ``Nursing Home Resident Protection
Act of 2002''.

SEC. 402. NURSING HOME RESIDENT PROTECTION.

(a) Protection of Residents in Nursing Homes and Other Residential
Health Care Facilities.--Chapter 63 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 1352. Pattern of violations resulting in harm to residents of
nursing homes and related facilities
``(a) Definitions.--In this section:
``(1) Entity.--The term `entity' means--
``(A) any residential health care facility
(including facilities that do not exclusively provide
residential health care services);
``(B) any entity that manages a residential health
care facility; or
``(C) any entity that owns, directly or indirectly,
a controlling interest or a 50 percent or greater
interest in 1 or more residential health care
facilities including States, localities, and political
subdivisions thereof.
``(2) Federal health care program.--The term `Federal
health care program' has the same meaning given that term in
section 1128B(f) of the Social Security Act.
``(3) Pattern of violations.--The term `pattern of
violations' means multiple violations of a single Federal or
State law, regulation, or rule or single violations of multiple
Federal or State laws, regulations, or rules, that are
widespread, systemic, repeated, similar in nature, or result
from a policy or practice.
``(4) Residential health care facility.--The term
`residential health care facility' means any facility
(including any facility that does not exclusively provide
residential health care services), including skilled and
unskilled nursing facilities and mental health and mental
retardation facilities, that--
``(A) receives Federal funds, directly from the
Federal Government or indirectly from a third party on
contract with or receiving a grant or other monies from
the Federal Government, to provide health care; or
``(B) provides health care services in a
residential setting and, in any calendar year in which
a violation occurs, is the recipient of benefits or
payments in excess of $10,000 from a Federal health
care program.
``(5) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and any
commonwealth, territory, or possession of the United States.
``(b) Prohibition and Penalties.--Whoever knowingly and willfully
engages in a pattern of violations that affects the health, safety, or
care of individuals residing in a residential health care facility or
facilities, and that results in significant physical or mental harm to
1 or more of such residents, shall be punished as provided in section
1347, except that any organization shall be fined not more than
$2,000,000 per residential health care facility.
``(c) Civil Provisions.--
``(1) In general.--The Attorney General may bring an action
in a district court of the United States to impose on any
individual or entity that engages in a pattern of violations
that affects the health, safety, or care of individuals
residing in a residential health care facility, and that
results in physical or mental harm to 1 or more such
residents--
``(A) a civil penalty; or
``(B) in the case of--
``(i) an individual (other than an owner,
operator, officer, or manager of such a
residential health care facility), not more
than $10,000;
``(ii) an individual who is an owner,
operator, officer, or manager of such a
residential health care facility, not more than
$100,000 for each separate facility involved in
the pattern of violations under this section;
``(iii) a residential health care facility,
not more than $1,000,000 for each pattern of
violations; or
``(iv) an entity, not more than $1,000,000
for each separate residential health care
facility involved in the pattern of violations
owned or managed by that entity.
``(2) Other appropriate relief.--If the Attorney General
has reason to believe that an individual or entity is engaging
in or is about to engage in a pattern of violations that would
affect the health, safety, or care of individuals residing in a
residential health care facility, and that results in or has
the potential to result in physical or mental harm to 1 or more
such residents, the Attorney General may petition an
appropriate district court of the United States for appropriate
equitable and declaratory relief to eliminate the pattern of
violations.
``(3) Procedures.--In any action under this subsection--
``(A) a subpoena requiring the attendance of a
witness at a trial or hearing may be served at any
place in the United States;
``(B) the action may not be brought more than 6
years after the date on which the violation occurred;
``(C) the United States shall be required to prove
each charge by a preponderance of the evidence;
``(D) the civil investigative demand procedures set
forth in the Antitrust Civil Process Act (15 U.S.C.
1311 et seq.) and regulations promulgated pursuant to
that Act shall apply to any investigation; and
``(E) the filing or resolution of a matter shall
not preclude any other remedy that is available to the
United States or any other person.
``(d) Prohibition Against Retaliation.--Any person who is the
subject of retaliation, either directly or indirectly, for reporting a
condition that may constitute grounds for relief under this section may
bring an action in an appropriate district court of the United States
for damages, attorneys' fees, and other relief.''.
(b) Authorized Investigative Demand Procedures.--Section 3486(a)(1)
of title 18, United States Code, as amended by section 302 of this Act,
is amended by inserting ``, act or activity involving section 1352 of
this title'' after ``Federal health care offense''.
(c) Conforming Amendment.--The analysis for chapter 63 of title 18,
United States Code, is amended by adding at the end the following:

``1352. Pattern of violations resulting in harm to residents of nursing
homes and related facilities.''.

TITLE V--PROTECTING THE RIGHTS OF ELDERLY CRIME VICTIMS

SEC. 501. USE OF FORFEITED FUNDS TO PAY RESTITUTION TO CRIME VICTIMS
AND REGULATORY AGENCIES.

Section 981(e) of title 18, United States Code, is amended--
(1) in each of paragraphs (3), (4), and (5), by striking
``in the case of property referred to in subsection
(a)(1)(C),'' and inserting ``in the case of property forfeited
in connection with an offense resulting in a pecuniary loss to
a financial institution or regulatory agency,''; and
(2) in paragraph (7), by striking ``In the case of property
referred to in subsection (a)(1)(D)'' and inserting ``in the
case of property forfeited in connection with an offense
relating to the sale of assets acquired or held by any Federal
financial institution or regulatory agency, or person appointed
by such agency, as receiver, conservator, or liquidating agent
for a financial institution''.

SEC. 502. VICTIM RESTITUTION.

Section 413 of the Controlled Substances Act (21 U.S.C. 853) is
amended by adding at the end the following:
``(r) Victim Restitution.--
``(1) Satisfaction of order of restitution.--
``(A) In general.--Except as provided in
subparagraph (B), a defendant may not use property
subject to forfeiture under this section to satisfy an
order of restitution.
``(B) Exception.--If there are 1 or more
identifiable victims entitled to restitution from a
defendant, and the defendant has no assets other than
the property subject to forfeiture with which to pay
restitution to the victim or victims, the attorney for
the Government may move to dismiss a forfeiture
allegation against the defendant before entry of a
judgment of forfeiture in order to allow the property
to be used by the defendant to pay restitution in
whatever manner the court determines to be appropriate
if the court grants the motion. In granting a motion
under this subparagraph, the court shall include a
provision ensuring that costs associated with the
identification, seizure, management, and disposition of
the property are recovered by the United States.
``(2) Restoration of forfeited property.--
``(A) In general.--If an order of forfeiture is
entered pursuant to this section and the defendant has
no assets other than the forfeited property to pay
restitution to 1 or more identifiable victims who are
entitled to restitution, the Government shall restore
the forfeited property to the victims pursuant to
subsection (i)(1) once the ancillary proceeding under subsection (n)
has been completed and the costs of the forfeiture action have been
deducted.
``(B) Distribution of property.--On a motion of the
attorney for the Government, the court may enter any
order necessary to facilitate the distribution of any
property restored under this paragraph.
``(3) Victim defined.--In this subsection, the term
`victim'--
``(A) means a person other than a person with a
legal right, title, or interest in the forfeited
property sufficient to satisfy the standing
requirements of subsection (n)(2) who may be entitled
to restitution from the forfeited funds pursuant to
section 9.8 of part 9 of title 28, Code of Federal
Regulations (or any successor to that regulation); and
``(B) includes any person who is the victim of the
offense giving rise to the forfeiture, or of any
offense that was part of the same scheme, conspiracy,
or pattern of criminal activity, including, in the case
of a money laundering offense, any offense constituting
the underlying specified unlawful activity.''.

SEC. 503. BANKRUPTCY PROCEEDINGS NOT USED TO SHIELD ILLEGAL GAINS FROM
FALSE CLAIMS.

(a) Certain Actions Not Stayed by Bankruptcy Proceedings.--
(1) In general.--Notwithstanding any other provision of
law, the commencement or continuation of an action under
section 3729 of title 31, United States Code, does not operate
as a stay under section 105(a) or 362(a)(1) of title 11, United
States Code.
(2) Conforming amendment.--Section 362(b) of title 11,
United States Code, is amended--
(A) in paragraph (17), by striking ``or'' at the
end;
(B) in paragraph (18), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following:
``(19) the commencement or continuation of an action under
section 3729 of title 31.''.
(b) Certain Debts Not Dischargeable in Bankruptcy.--Section 523 of
title 11, United States Code, is amended by adding at the end the
following:
``(f) A discharge under section 727, 1141, 1228(a), 1228(b), or
1328(b) does not discharge a debtor from a debt owed for violating
section 3729 of title 31.''.
(c) Repayment of Certain Debts Considered Final.--
(1) In general.--Chapter 1 of title 11, United States Code,
is amended by adding at the end the following:
``Sec. 111. False claims
``No transfer on account of a debt owed to the United States for
violating section 3729 of title 31, or under a compromise order or
other agreement resolving such a debt may be avoided under section 544,
545, 547, 548, 549, 553(b), or 742(a).''.
(2) Conforming amendment.--The analysis for chapter 1 of
title 11, United States Code, is amended by adding at the end
the following:

``111. False claims.''.

SEC. 504. FORFEITURE FOR RETIREMENT OFFENSES.

(a) Criminal Forfeiture.--Section 982(a) of title 18, United States
Code, is amended by adding at the end the following:
``(9) Criminal Forfeiture.--
``(A) In general.--The court, in imposing a sentence on a
person convicted of a retirement offense, shall order the
person to forfeit property, real or personal, that constitutes
or that is derived, directly or indirectly, from proceeds
traceable to the commission of the offense.
``(B) Retirement offense defined.--In this paragraph, if a
violation, conspiracy, or solicitation relates to a retirement
arrangement (as defined in section 1351 of title 18, United
States Code), the term `retirement offense' means a violation
of--
``(i) section 664, 1001, 1027, 1341, 1343, 1351,
1951, 1952, or 1954 of title 18, United States Code; or
``(ii) section 411, 501, or 511 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1111,
1131, 1141).''.
(b) Civil Forfeiture.--Section 981(a)(1) of title 18, United States
Code, is amended by adding at the end the following:
``(I) Any property, real or personal, that constitutes or
is derived, directly or indirectly, from proceeds traceable to
the commission of, criminal conspiracy to violate, or
solicitation to commit a crime of violence involving, a
retirement offense (as defined in section 982(a)(9)(B)).''.