Exclusion of Felony Fraud Convicts to Protect Federal Funds

(a)

Procurement integrity

Chapter 47 of title 41, United States Code, is amended by adding at the end the following new section:

4715.

Protecting Federal funds from individuals convicted of certain Federal felonies

(a)

Prohibition

(1)

In general

Except as provided in subsection (b), an individual who is convicted of a covered felony arising out of any agency contract, grant, cooperative agreement, loan, or other financial assistance shall be identified as an excluded source on the System for Award Management Exclusions list described in part 9 of title 48, Code of Federal Regulations, and part 180 of title 2 of such Code, or successor regulations.(2)

Notification of conviction

For each individual convicted of a covered felony, the Attorney General shall notify the Administrator of General Services in a timely manner of such conviction and the Administrator shall promptly enter the 3-year prohibition for such person into the System for Award Management, or any successor system.(b)

Waiver

Notwithstanding subsection (a), the agency head may exempt an individual described in subsection (a)(1) from the prohibition under such subsection for a case in which the agency head determines in writing that the exemption is warranted. The agency head shall transmit a copy of each such written exemption to Congress immediately after making such determination.(c)

Definitions

In this section:(1)

Agency

The term agency means an Executive department (as defined under section 101 of title 5), a military department (as defined under section 102 of title 5), a Government corporation (as defined under section 103 of title 5), and an independent establishment (as defined under section 104(1) of title 5).(2)

Convicted

The term convicted means—(A)a judgment of conviction has been entered against the individual by a Federal court, regardless of whether there is an appeal pending;(B)there has been a finding of guilt against the individual by a Federal court;(C)a plea of guilty or nolo contendere by the individual has been accepted by a Federal court; or(D)the individual has entered into a first offender, deferred adjudication, deferred prosecution, or other arrangement or program in which judgment or conviction has been withheld.(3)

Covered felony

The term covered felony means a felony described under section 286, 287, 371, 641, 666, 1001, 1014, 1017, 1028, 1028A, 1030, 1031, 1040(a)(2), 1341, 1343, 1344, 1345, 1349, 1956, and 1957 of title 18 and section 16 of the Small Business Act (15 U.S.C. 645).(d)

Rules of construction

(1)

Federal interests

Nothing in this section may be construed to prohibit an agency from seeking or taking any other available criminal, civil, or administrative action to protect Federal Government interests, including the proposal or implementation of suspension or debarment actions pursuant to subpart 9.4 of title 48, Code of Federal Regulations, and part 180 of title 2 of such Code.(2)

Exclusion

Nothing in subsection (b) may be construed to affect any other statutory or regulatory waiver authority related to an exclusion.

(b)

Clerical amendment

The table of sections for chapter 47 of title 41, United States Code, is amended by adding at the end the following:

4715. Protecting Federal funds from individuals convicted of certain Federal felonies.