#aaith ,,congress #b;d ,session ,h4 ,r4 #fiaf ,,an ,,act ,to amend title #ca1 ,united ,states ,code1 to prohibit ,federal ,funds from being provided to individuals convicted of certain ,federal felonies1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,federal ,program ,integrity and ,fraud ,prevention ,act of #bjbf4 #b4 ,prohibiting ,federal ,funds from being provided to individuals convicted of certain ,federal felonies 7a7 ,prohibition ,subchapter ,,ii of chapter #cc of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #cccg4 ,prohibiting ,federal ,funds from being provided to individuals convicted of certain ,federal felonies4 7a7 ,prohibition 7#a7 ,in general ,the head of an agency may not enter into1 renew1 or extend a ,federal contract1 or provide a grant or other ,federal financial assistance to1 an individual convicted of a covered felony arising out of any ,federal contract1 grant1 cooperative agreement1 loan1 or other financial assistance1 or to an entity of which such individual is a beneficial owner1 during the three year period following the date of the conviction4 7#b7 ,application ,the prohibition under paragraph 7#a7 shall apply with respect to an individual convicted after the date of the enactment of this section4 7b7 ,waiver 7#a7 ,authority ,the head of an agency may waive on a case-by-case basis the prohibition under subsection 7a7 with respect to an individual or entity described under such subsection if the head of the agency determines such waiver is justifiable4 7#b7 ,written ,congressional notification of waiver ,immediately after making a determination to issue a waiver under paragraph 7#a71 the head of an agency shall provide to ,congress a written notification of such determination that includes the justification for the waiver4 7c7 ,notice requirements ,for each individual convicted of a covered felony arising out of any ,federal contract1 grant1 cooperative agreement1 loan1 or other financial assistance-- 7#a7 the ,attorney ,general shall notify the ,administrator of ,general ,services in a timely manner of such conviction2 and 7#b7 the ,administrator shall promptly update the ,system for ,award ,management ,exclusions list described in part #i of title #dh1 ,code of ,federal ,regulations1 and part #ahj of title #b of such ,code1 or any successor regulation1 to include such individual4 7d7 ,guidance ,not later than #a year after the date of the enactment of this ,act1 the ,director of the ,office of ,management and ,budget shall issue guidance for the implementation of1 and compliance with1 the requirements of this section4 7e7 ,federal acquisition regulation ,the ,federal ,acquisition ,regulation shall be revised as necessary to implement the provisions of this section4 7f7 ,rules of construction 7#a7 ,federal interests ,nothing in this section may be construed to prohibit an agency from seeking or taking any other available criminal1 civil1 or administrative action to protect ,federal ,government interests1 including the proposal or implementation of suspension or debarment actions pursuant to subpart #i4d of title #dh1 ,code of ,federal ,regulations1 and part #ahj of title #b of such ,code4 7#b7 ,exclusion ,nothing in subsection 7b7 may be construed to affect any other statutory or regulatory waiver authority related to an exclusion4 7g7 ,definitions ,in this section3 7#a7 ,agency ,the term agency means-- 7,a7 an ,executive department 7as defined under section #aja of title #e72 7,b7 a military department 7as defined under section #ajb of title #e72 7,c7 a ,government corporation 7as defined under section #ajc of title #e72 and 7,d7 an independent establishment 7as defined under section #ajd7a7 of title #e74 7#b7 ,beneficial owner ,the term beneficial owner-- 7,a7 means1 with respect to an entity1 an individual who1 directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise-- 7i7 exercises substantial control over the entity2 or 7ii7 owns or controls not less than #be percent of the ownership interests of the entity2 and 7,b7 does not include-- 7i7 a minor child1 as defined in the jurisdiction in which the entity is formed1 if the information of the parent or guardian of the minor child is reported in accordance with this section2 7ii7 an individual acting as a nominee1 intermediary1 custodian1 or agent on behalf of another individual2 7iii7 an individual acting solely as an employee of a corporation1 limited liability company1 or other similar entity and whose control over or economic benefits from such entity is derived solely from the employment status of the person2 7iv7 an individual whose only interest in a corporation1 limited liability company1 or other similar entity is through a right of inheritance2 or 7v7 a creditor of a corporation1 limited liability company1 or other similar entity1 unless the creditor meets the requirements of subparagraph 7,a74 7#c7 ,convicted ,the term convicted means any of the following3 7,a7 ,a judgment of conviction has been entered against the individual by a ,federal court1 except for any individual whose conviction has been reversed or vacated4 7,b7 ,a plea of guilty or nolo contendere by the individual has been accepted by a ,federal court1 except for any case in which the conviction entered as result of such plea has been reversed or vacated4 7,c7 ,the individual has entered into a first offender1 deferred adjudication1 deferred prosecution1 or other arrangement or program in which the individual admitted guilt or responsibility to the underlying offense4 7#d7 ,covered felony ,the term covered felony means a felony described under section #bhf1 #bhg1 #cga1 #ejh1 #fda1 #fff1 #ajja1 #ajjb1 #ajad1 #ajag1 #ajbh1 #ajbh;,a1 #ajcj1 #ajca1 #ajdj7;a77#b71 #acda1 #acdb1 #acdc1 #acdd1 #acde1 #acdi1 #aief1 or #aieg of title #ah or section #af of the ,small ,business ,act 7#ae ,u4,s4,c4 #fde74 4 7b7 ,table of contents ,the table of contents for subchapter ,,ii of chapter #cc of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #cccg4 ,prohibiting ,federal funds from being provided to individuals convicted of certain ,federal felonies4 4 ,passed the ,house of ,representatives ,june #h1 #bjbf4;,clerk4