PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Support Letter for Senator Cotton’s Amendment to the “False Claims Amendments Act,” S. 2428

By at 25 October, 2021, 10:16 pm

The Honorable Senator Cotton

United States Senate

Washington, D.C.  20510

 

Dear Senator Cotton:

On behalf of the Small Business & Entrepreneurship Council (SBE Council), I am writing to voice our organization’s strong support for your amendment to the “False Claims Amendments Act of 2021” (S.2428) that appropriately requires a study focusing on the effectiveness of the “False Claims Act” before the Senate takes action to make significant changes to the statute, which we believe would be harmful to small businesses and taxpayers alike.

As SBE Council noted in a letter to Senate Judiciary Committee members regarding S.2428, we believe the legislation “would create unintended consequences and big problems for small businesses by unfairly imposing costs, burdens and inequities upon them, especially if they are an innocent party that gets swept into a “qui tam” complaint.”

These unintended consequences would exacerbate current False Claims Act problems, which in turn would present significant hardships and inequities for small businesses.

A full GAO study on the effectiveness of the False Claims Act is an important step to determine the benefits and challenges in enforcing the statute, and what if any legislative changes are necessary. Significant concerns have emerged about the possible effects of S.2428 that warrant such a study.

We urge all Senate Judiciary Committee members to support your practical and judicious amendment. Thank you for your support of our nation’s small businesses, and do not hesitate to contact me if you have questions.

Sincerely,

Karen Kerrigan, President & CEO

 

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