Responsibility in Federal Contracts Act

Responsibility in Federal Contracts Act - Prohibits the Federal government from entering into, or approving any subcontract under, a contract with any company filing certain periodic reports under the Securities Exchange Act of 1934 if, before the date on which the contract is expected to be awarded, a specified certification required under the Sarbanes-Oxley Act of 2002 has not been made for the most recent periodic report due before such date.

Retains such prohibition for the one-year period beginning on the date that the most recent periodic report was due.

Authorizes the President to waive the prohibition if he determines that it is in the national security interest.

Requires the Securities and Exchange Commission to make available to the public on a quarterly basis a list of companies that have failed to make the certification required under the Sarbanes-Oxley Act of 2002.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5635 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5635

 To prohibit the Federal Government from entering into contracts with 
  companies that do not include certifications for certain financial 
      reports required under the Securities Exchange Act of 1934.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 2002

Mr. Strickland (for himself, Mr. Deutsch, and Ms. Slaughter) introduced 
 the following bill; which was referred to the Committee on Government 
 Reform, and in addition to the Committee on Financial Services, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To prohibit the Federal Government from entering into contracts with 
  companies that do not include certifications for certain financial 
      reports required under the Securities Exchange Act of 1934.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsibility in Federal Contracts 
Act''.

SEC. 2. PROHIBITION ON CONTRACTING WITH COMPANIES WITHOUT FINANCIAL 
              REPORT CERTIFICATIONS.

    (a) Prohibition on Contracting With Companies Failing To Certify 
Their Financial Reports.--The Federal Government may not enter into, or 
approve any subcontract under, a contract with any company filing 
periodic reports under section 13(a) or 15(d) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) if, before the date on 
which the contract is expected to be awarded, the certification 
required under section 302(a) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7241) has not been made for the most recent periodic report due 
before such date.
    (b) Period of Prohibition.--A prohibition under subsection (a) 
shall remain in effect with respect to a company for the one-year 
period beginning on the date that the most recent periodic report was 
due.
    (c) Waiver.--The President may waive the prohibition in subsection 
(a) if he determines that such waiver is in the national security 
interest of the United States.
    (d) List of Companies Failing To Certify.--The Securities and 
Exchange Commission shall make available to the public on a quarterly 
basis a list of companies that have failed to make the certification 
required under section 302(a) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7241).
    (e) Effective Date.--This section shall apply to contracts entered 
into after the date of the enactment of this Act.
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