Public Law 118-151: Providing Good Faith Exception to False Assertions and Certifications
On December 30, 2024, President Joe Biden signed Public Law 118-151 into law. This Act amends Title 35 of the United States Code to establish a good faith exception for the imposition of fines for false assertions and certifications.
Background
Under the previous law, individuals or entities who knowingly made false statements or certifications in connection with certain government matters could be subject to significant fines. This could include making false assertions about a company’s employment practices, financial status, or compliance with regulations.
However, concerns were raised that the law’s strict liability standard could result in unintentional violations and disproportionate penalties. In many cases, individuals or entities could be held liable even if they made a mistake or relied on incorrect information.
Good Faith Exception
Public Law 118-151 addresses these concerns by establishing a good faith exception to the imposition of fines for false assertions and certifications. Under this exception, individuals or entities will not be subject to fines if they can demonstrate that:
- They made a reasonable effort to comply with the applicable requirements;
- They acted in good faith based on the information available to them at the time; and
- They promptly corrected any false or misleading statements or certifications.
Additional Provisions
In addition to the good faith exception, Public Law 118-151 also includes other provisions, such as:
- Clarifying the definition of “knowingly” to exclude innocent mistakes or reliance on incorrect information;
- Providing for a phase-in period of six months before the good faith exception takes effect;
- Directing the Attorney General to issue guidance on the implementation of the good faith exception; and
- Creating a new offense for making intentionally false assertions or certifications.
Implications
Public Law 118-151 is expected to have a significant impact on individuals and entities who are required to make assertions or certifications in connection with government matters. By providing a good faith exception, the law reduces the risk of unintentional violations and disproportionate penalties.
Businesses and individuals should review the requirements of the Act and implement policies and procedures to ensure compliance. They should also consult with legal counsel if they have any questions or concerns.
Public Law 118 – 151 – An act to amend title 35, United States Code, to provide a good faith exception to the imposition of fines for false assertions and certifications, and for other purposes.
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