Short title

This Act may be cited as the

Against Corporations Organizing to Rip-off the Nation Act

or the

ACORN Act

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. (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. (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. (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. (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.. (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..

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

Covered Corporation or Company

In this section, the term covered corporation or company means any of the following: (1)Any corporation or company guilty of felony criminal violations under any Federal or State law— (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; but (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. (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. (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)— (A)employs the applicable individual, in a permanent or temporary capacity; (B)has under contract or retains the applicable individual; or (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. (c)

Additional Definitions

In this section: (1)The term corporation or company includes Pfizer, Pharmacia & Upjohn Company Inc. and any Pfizer-related affiliate. (2)The term applicable individual means, with respect to a corporation or company, an individual who— (A)is a director, officer, or executive of the corporation or company; and (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. (d)

Revision of Federal Acquisition Regulation

The Federal Acquisition Regulation shall be revised to carry out the provisions of this Act relating to contracts. (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— (1)determines such a waiver is in the national interest; and (2)provides notice to all appropriate Congressional committees of the intent to grant such waiver 15 days before the date such waiver is granted.