ACORN and Unintended Consequences

By Elizabeth Newell

A prominent industry group is concerned that a provision in legislation aimed at ACORN might have broader implications for contractors. TechAmerica released a statement today opposing a provision which would effectively debar any federal contractor indicted for filing fraudulent information with the government, without waiting for the final verdict on the charge.

"It is already a crime to file fraudulently with the government, and we wholeheartedly condemn such actions," said TechAmerica President Phil Bond, questioning whether legislators intended for contractors to be among the organizations effected by the provision. "Talk about unintended consequences, this language could put a company out of business without regard to actual guilt. All contractors are asking for is simple due process - the opportunity to defend themselves in court against an allegation that could well be false."

Bond said TechAmerica has no position on the broader ACORN legislation, which the House voted last week to add to student loan legislation under consideration by the Senate Health, Education, Labor and Pensions Committee. The specific language the association opposes prohibits any federal agency from awarding a contract to any organization indicted for filing fraudulent information. Under current law, a contractor could already be debarred if convicted of that crime.