HR 3679 IHCommentsClose CommentsPermalink

To prohibit the Federal Government from awarding contracts, grants, or other agreements to, providing any other Federal funds to, or engaging in activities that promote certain corporations or companies guilty of certain felony convictions.CommentsClose CommentsPermalink

September 30, 2009CommentsClose CommentsPermalink

Ms. MCCOLLUM (for herself, Mr. STARK, Mr. GRIJALVA, Mr. MCDERMOTT, Mr. ELLISON, Ms. LEE of California, Mr. OBEY, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Oversight and Government ReformCommentsClose CommentsPermalink

To prohibit the Federal Government from awarding contracts, grants, or other agreements to, providing any other Federal funds to, or engaging in activities that promote certain corporations or companies guilty of certain felony convictions.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Against Corporations Organizing to Rip-off the Nation Act’ or the ‘ACORN Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

(1) According to the Corporate Fraud Task Force Report to the President, 2008, in fiscal year 2007, United States Attorneys’ offices opened 878 new criminal health care fraud investigations involving 1,548 potential defendants. Federal prosecutors had 1,612 health care fraud criminal investigations pending, involving 2,603 potential defendants, and filed criminal charges in 434 cases involving 786 defendants. A total of 560 defendants were convicted for health care fraud-related crimes during the year.CommentsClose CommentsPermalink





(2) On September 2, 2009, it was announced that Pfizer Inc. and its subsidiary Pharmacia & Upjohn Company Inc., agreed to pay $2.3 billion, the largest health care fraud settlement in the history of the Department of Justice, to resolve criminal liability from the illegal promotion of certain pharmaceutical products.CommentsClose CommentsPermalink





(3) Pharmacia & Upjohn Company agreed to plead guilty to a felony violation of the Federal Food, Drug and Cosmetic Act for misbranding Bextra with the intent to defraud or mislead.CommentsClose CommentsPermalink





(4) Pharmacia & Upjohn Company marketed ‘off-label’ uses of Bextra for several uses and dosages that the Food and Drug Administration declined to approve due to safety concerns.CommentsClose CommentsPermalink





(5) The Assistant Attorney General for the Civil Division has stated, ‘Illegal conduct and fraud by pharmaceutical companies puts the public health at risk, corrupts medical decisions by health care providers, and costs the Government billions of dollars.’.CommentsClose CommentsPermalink





(6) The Director of the Defense Department’s Criminal Investigative Services stated, ‘The off-label promotion of pharmaceutical drugs by Pfizer significantly impacted the integrity of TRICARE, the Department of Defense’s health care system. This illegal activity increases patients’ costs, threatens their safety and negatively affects the health care services to the over nine million military members, retirees and their families who rely on this system.’.CommentsClose CommentsPermalink

SEC. 3. PROHIBITIONS ON FEDERAL FUNDS AND OTHER ACTIVITIES WITH RESPECT TO CERTAIN CORPORATIONS OR COMPANIES.

(a) Prohibitions- Subject to subsection (e), with respect to any covered corporation or company or applicable individual the following prohibitions apply:CommentsClose CommentsPermalink





(1) No Federal contract, grant, cooperative agreement, or any other form of agreement (including a memorandum of understanding) may be awarded to or entered into with the corporation or company for a 5-year period beginning 30 days after the date of the criminal conviction involved or termination of charter (as the case may be).CommentsClose CommentsPermalink





(2) No Federal funds in any other form may be provided to the corporation or company for such 5-year period.CommentsClose CommentsPermalink





(3) No Federal employee or contractor may promote in any way (including recommending to a person or referring to a person for any purpose) the corporation or company for such 5-year period.CommentsClose CommentsPermalink





(4) No covered corporation or company or applicable individual may contribute funds to a candidate for Federal office, Federal political action committee, or Federal or State political party during such a 5-year period.CommentsClose CommentsPermalink





(5) No more than $1,000,000 in any calendar year may be used by the corporation or company, or applicable individual, for the purpose of lobbying Congress or Federal employees during such 5-year period.CommentsClose CommentsPermalink





(b) Covered Corporation or Company- In this section, the term ‘covered corporation or company’ means any of the following:CommentsClose CommentsPermalink





(1) Any corporation or company guilty of felony criminal violations under any Federal or State law--CommentsClose CommentsPermalink





(A) including a felony violation of the Federal Food, Drug and Cosmetic Act, sections 3729 through 3733 of title 31, United States Code (formerly known as the False Claims Act), or a violation for the filing of a fraudulent form with any Federal or State regulatory agency; butCommentsClose CommentsPermalink





(B) excluding a violation for which the corporation or company has fully completed all terms of criminal sentencing or a criminal settlement agreement as of the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) Any corporation or company that had its State corporate charter terminated due to its failure to comply with Federal or State lobbying disclosure requirements.CommentsClose CommentsPermalink





(3) Any corporation or company that, within the 5-year period beginning 30 days after the date of conviction of an applicable individual of a violation described in subsection (c)(2)(B)--CommentsClose CommentsPermalink





(A) employs the applicable individual, in a permanent or temporary capacity;CommentsClose CommentsPermalink





(B) has under contract or retains the applicable individual; orCommentsClose CommentsPermalink





(C) has the applicable individual acting on the behalf of the corporation or company or with the express or apparent authority of the corporation or company.CommentsClose CommentsPermalink





(c) Additional Definitions- In this section:CommentsClose CommentsPermalink





(1) The term ‘corporation or company’ includes Pfizer, Pharmacia & Upjohn Company Inc. and any Pfizer-related affiliate.CommentsClose CommentsPermalink





(2) The term ‘applicable individual’ means, with respect to a corporation or company, an individual who--CommentsClose CommentsPermalink





(A) is a director, officer, or executive of the corporation or company; andCommentsClose CommentsPermalink





(B) has been found guilty of a felony violation under Federal or State law in relation to the individual’s conduct in the individual’s capacity as a director, officer, or executive of a corporation or company.CommentsClose CommentsPermalink





(d) Revision of Federal Acquisition Regulation- The Federal Acquisition Regulation shall be revised to carry out the provisions of this Act relating to contracts.CommentsClose CommentsPermalink





(e) Presidential Waiver Authority- The President may waive a prohibition in subsection (a) with respect to a corporation, company, or applicable individual if the President--CommentsClose CommentsPermalink





(1) determines such a waiver is in the national interest; andCommentsClose CommentsPermalink





(2) provides notice to all appropriate Congressional committees of the intent to grant such waiver 15 days before the date such waiver is granted.CommentsClose CommentsPermalink