McCollum seeks to bar federal funds going to felony corporations

WASHINGTON, D.C. — Rep. Betty McCollum, D-Minn., plans to introduce legislation today that would stop federal dollars from flowing to corporations with a felony conviction.

The bill would specifically prohibit the corporation from receiving federal money for five years following the conviction. It would also block corporate felons from making federal campaign contributions for five years, and would limit the lobbying that the corporation can do during that period.

McCollum has dubbed the bill the Against Corporations Organizing to Rip-Off the Nation Act of 2009, or the ACORN Act. The name appears to reference action that Congress took earlier this month to stop federal dollars from going to the anti-poverty group ACORN.

“Congress took action to defund one non-profit serving poor Americans – ACORN – but not against the billion dollar corporations that are actually guilty of felonies,” McCollum said in a statement.  “For the 345 Members of Congress who voted to defund ACORN, this is bill is an opportunity to support corporate accountability and responsibility while punishing corporate crime.”

McCollum and Rep. Keith Ellison, D-Minn., were among 75 representatives to vote against defunding ACORN. They were the only members of the Minnesota delegation in the House to vote against the measure, which Republicans have been pushing.

The vote came in the wake of a series of investigations involving ACORN employees. ACORN, however, has never been convicted of a felony.

McCollum stated that under her bill a corporation would have to be convicted of a felony before federal funds are cut off.

McCollum is now circulating a letter to House members seeking co-sponsors for the legislation.

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Comments (6)

  1. Submitted by Greg Kapphahn on 09/30/2009 - 09:03 am.

    Brilliant! Wonderful title for the bill! Let’s see our conservative friends vote against the “Acorn Act.”

  2. Submitted by Thomas Swift on 09/30/2009 - 11:17 am.

    So Rep. McCollum is spurred to action not through any deluded concept of “doing the right thing”, but through throwing a little tantrum.

    How sad. Really, how pathetic.

  3. Submitted by Justin Heideman on 09/30/2009 - 04:51 pm.

    It seems pretty sad to me that we actually pay companies convicted of felonious acts. It’s even sadder that some people think that’s just fine and we should keep doing it. There is a foul stench of hypocrisy in the US Capitol building and thankfully, someone is trying to air it out.

  4. Submitted by Mike Haubrich on 10/01/2009 - 06:42 am.

    Mr. Swift, what is sad and pathetic is that Congress voted to defund an organization that has never been convicted while ignoring those organizations which have. McCollum is trying to restore the rule of law over the passions of the conservatives afraid of poor people.

  5. Submitted by Bernice Vetsch on 10/01/2009 - 12:07 pm.

    Mike H to Thomas S: Absolutely correct.

    Acorn has not been convicted of ANYTHING. Until it has, the Congress should not be punishing it.

    The Acorn law will, on the other hand, allow Congress to go after Xe (Blackwater), KRB and other defense contractors or “cost plus” suppliers who have ripped us off for decades. It may be the only way to get them off the “approved vendor” lists.

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