How the ACORN Became A Mightier Oak: The Broader Implications of H.R. 3571

It appears that H.R. 3571 or The Defund ACORN Act's reforming reach may go well beyond the community organization itself. Although the Congressional bill passed both the House & Senate with wide bipartisan support, the language of the bill was so broad that it could include other organizations receiving federal funds outside of ACORN. For example, Section 2b Paragraphs 1-4 of the bill reads:

(b) Covered Organization- In this section, the term covered organization' means any of the following:

(1) Any organization that has been indicted for a violation under any Federal or State law governing the financing of a campaign for election for public office or any law governing the administration of an election for public office, including a law relating to voter registration.

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

(3) Any organization that has filed a fraudulent form with any Federal or State regulatory agency.

(4) Any organization that--

(A) employs any applicable individual, in a permanent or temporary capacity;

(B) has under contract or retains any applicable individual; or

(C) has any applicable individual acting on the organization's behalf or with the express or apparent authority of the organization.

Which means it can apply to "any organization" that has been charged with breaking federal or state election laws, lobbying disclosure laws, campaign finance laws or filing fraudulent paperwork with any federal or state agency. It also applies to any of the employees, contractors or others affiliated with a group charged with any of those things.

That places big government contract recipients and campaign contributors, for both political parties, right in the cross-hairs of this bill. Donors such as Lockheed Martin, which has 11 government contract fraud instances, or Northrop Grumman with 9 contract fraud instances including a $325 million False Claims Act settlement from earlier this year. Among the other notables who could be affected by H.R. 3571 are: Boeing, Raytheon, Humana and General Electric to name a few.

Since 1994 ACORN has received $53 million in federal funds, conversely, Lockheed Martin and Northrop Grumman received, respectively, $35 billion and $18 billion last year alone. Congress has rightly, in my opinion, targeted contractor fraud and waste. Just how big that target will be, time and vigilance will tell.

Sources:

http://www.opencongress.org/bill/111-h3571/text

http://www.contractormisconduct.org/