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Florida congressman introduces "Defund the Crooks Act"

By Phillips & Cohen LLP

Rep. Alan Grayson (D-Fla.) has introduced a bill (H.R. 4444) that would impose new restrictions on the award of government contracts to organizations that have violated state or federal law.

The bill would amend the Federal Acquisition Regulations to prevent the award of contracts to and require the termination of contracts with "covered organizations."

The bill defines "covered organizations" as:

(1) An organization that has been convicted ofa violation of any Federal or State law.
(2) An organization that had its corporate charter revoked by a State or other issuing authority due to the failure of the organization to comply with Federal or State laws.
(3) An organization that has filed, submitted, or transmitted a fraudulent claim with or to any Federal or State agency authorized by law to promulgate regulations.
(4) An organization that knowingly employs an individual who has been convicted of a violation of Federal or State law.
(5) Any organization that is the parent company of, subsidiary of, or subsidiary of the parent company of, and any other company that owns 50 percent or more of, an organization dscribed above.

Full post as published by False Claims Act - Qui Tam on January 25, 2010 (boomark / email).