NAMIC’s opposition to S. 2041, the False Claims Act Correction Act legislation, has heated up. By voice vote, the Senate Judiciary Committee approved a proposal to amend the Act, despite a letter penned by NAMIC and endorsed by 16 other organizations that urged defeat. NAMIC will continue and step up the efforts to reject the legislation.
Although the Judiciary Committee did make some amendments to the legislation, NAMIC still opposes the bill reported from committee because it would dramatically expand the scope of liability under the Federal False Claims Act and “will impose enormous burdens on non-profits, universities, hospitals, and small businesses, as well as virtually any organization that does business with the federal government.” As the letter also states, it would “raise companies’ costs of doing business, increase the government’s procurement cost and interfere with its ability to manage its programs.”
NAMIC and the other organizations support the laudable purposes of the Act but strongly oppose the amendments, which they believe would imbalance the existing law in favor of unwarranted suits and attorneys’ fees.
Among the organizations joining NAMIC in signing the letter were the U.S. Chamber of Commerce, the National Federation of Business, and the American Tort Reform Association.
Direct questions to NAMIC’s Senior Vice President of Government Affairs Carl Parks.
Posted: Tuesday, April 08, 2008 12:00:00 AM. Modified: Tuesday, April 08, 2008 3:37:40 PM.
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