I 

111TH CONGRESS 

2D SESSION H. R. 4444 

To prohibit the Federal Government from awarding contracts or grants to, 

entering into other agreements with, providing any other Federal funds 

to, or engaging in activities that promote, certain organizations. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 13, 2010 

Mr. GRAYSON introduced the following bill; which was referred to the 

Committee on Oversight and Government Reform 

A BILL 

To prohibit the Federal Government from awarding contracts 

or grants to, entering into other agreements with, providing any other Federal funds to, or engaging in activities that promote, certain organizations. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Defund the Crooks 

5 Act’’. 

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1 SEC. 2. PROHIBITIONS ON FEDERAL FUNDS AND OTHER 

2 ACTIVITIES WITH RESPECT TO CERTAIN OR3 GANIZATIONS. 

4 (a) PROHIBITIONS.—With respect to any covered or5 ganization, the following prohibitions apply: 

6 (1) No Federal contract, grant, cooperative 

7 agreement, or any other form of agreement, includ8 ing the execution of a contract option, the award of 

9 a task order, or a memorandum of understanding, 

10 may be awarded to or entered into with the covered 

11 organization. 

12 (A) Except as provided in subparagraph 

13 (B), no Federal funds in any form may be pro14 vided to the covered organization. 

15 (B) Subparagraph (A) does not apply to 

16 Federal funds provided as payment for goods or 

17 services provided to the Government before the 

18 date of the enactment of this Act. 

19 (2) No Federal employee acting in the course 

20 and scope of employment and no Federal contractor 

21 during the performance of the contract, may pro22 mote the covered organization in any way, including 

23 recommending the covered organization to any per24 son or referring any person to the covered organiza25 tion for any purpose. 

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1 (b) TERMINATION OF CERTAIN CONTRACTS OR

2 GRANTS.—In the case of a contract or grant awarded— 

3 (1) before the date of the enactment of this Act 

4 to a covered organization, if the contract period or 

5 the duration of the contract or grant expires more 

6 than one year after such date, such contract or 

7 grant shall be terminated not later than one year 

8 after the date of the enactment of this Act; or 

9 (2) after the date of the enactment of this Act 

10 to an organization that becomes a covered organiza11 tion after the award of the contract or grant, such 

12 contract or grant shall be terminated immediately. 

13 (c) COVERED ORGANIZATION DEFINED.—In this sec14 tion, the term ‘‘covered organization’’ means any of the 

15 following: 

16 (1) An organization that has been convicted of 

17 a violation of any Federal or State law. 

18 (2) An organization that had its corporate char19 ter revoked by a State or other issuing authority due 

20 to the failure of the organization to comply with 

21 Federal or State laws. 

22 (3) An organization that has filed, submitted, 

23 or transmitted a fraudulent claim with or to any 

24 Federal or State agency authorized by law to pro25 mulgate regulations, including the Department of 

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1 Defense, the Department of Health and Human 

2 Services, and the Department of Labor. 

3 (4) An organization that knowingly— 

4 (A) employs an individual who has been 

5 convicted of a violation of Federal or State law; 

6 (B) hires as a contractor any such indi7 vidual; or 

8 (C) extends any express, implied, or appar9 ent authority to such an individual to act on be10 half of the organization. 

11 (5) Any organization that is the parent com12 pany of, subsidiary of, or subsidiary of the parent 

13 company of, and any other company that owns 50 

14 percent or more of, an organization described in 

15 paragraphs (1), (2), (3), or (4). 

16 (d) ADDITIONAL DEFINITIONS.—In this section: 

17 (1) The term ‘‘fraudulent’’ includes, but is not 

18 limited to any activity that would establish liability 

19 under either section 1001 of title 18, United States 

20 Code, or section 3729 of title 31, United States 

21 Code. 

22 (2) The term ‘‘claim’’— 

23 (A) means any communication, such as a 

24 statement, record, or form, that includes any 

25 information required by law; and 

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1 (B) includes— 

2 (i) the term ‘‘claim’’ as such term is 

3 defined under section 3729(c) of title 31, 

4 United States Code, and as such term is 

5 used in section 287 of title 18, United 

6 States Code; and 

7 (ii) the term ‘‘representation’’ and the 

8 term ‘‘entry’’ as such terms are used in 

9 section 1001 of title 18, United States 

10 Code. 

11 (e) REVISION OF FEDERAL ACQUISITION REGULA12 TION.—The Federal Acquisition Regulation shall be re13 vised to carry out the provisions of this Act relating to 

14 contracts. 

Æ 

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