To ensure that companies operating in the United States that receive United States Government funds are not conducting business in Iran, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accountability for Business Choices 
in Iran Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Islamic Republic of Iran is a party to the Treaty 
        on the Non-Proliferation of Nuclear Weapons (NPT) and a member 
        of the International Atomic Energy Agency (IAEA).
            (2) Since 1987, successive United States administrations 
        have issued executive orders to ban imports of Iranian-origin 
        goods and services, participation of United States persons or 
        entities in the development of Iran's energy sector and 
        investment by and in Iranian banks in order to address the 
        unusual and extraordinary threat to the national security, 
        foreign policy and economy of the United States posed by an 
        Iranian nuclear weapons program.
            (3) On August 5, 1996, the Iran and Libya Sanctions Act was 
        signed into law. In 2006, the title of this law was changed to 
        the Iran Sanctions Act (ISA). The ISA notes that ``the efforts 
        of the Government of Iran to acquire weapons of mass 
        destruction and the means to deliver them and its support of 
        acts of international terrorism endanger the national security 
        and foreign policy interests of the United States and those 
        countries with which the United States shares common strategic 
        and foreign policy objectives,'' and therefore requires the 
        President to sanction United States and foreign companies if 
        the President determines that such companies have invested in 
        Iran's petroleum or natural gas sectors.
            (4) On March 14, 2000, the Iran Nonproliferation Act was 
        signed into law, ``to provide for the application of measures 
        to foreign persons who transfer to Iran certain goods, 
        services, or technology, and for other purposes.''.
            (5) On September 30, 2006, the Iran Freedom Support Act 
        (IFSA) was signed into law ``to hold the current regime in Iran 
        accountable for its threatening behavior'' and recommended that 
        the President initiate investigations upon the receipt of 
        credible information that a United States or foreign person is 
        investing in Iran's petroleum or natural gas sector in 
        violation of the ISA. The IFSA extended the ISA until December 
        31, 2011.
            (6) In response to its ``serious concern'' over Iran's 
        nuclear program, the United Nations Security Council (UNSC) has 
        passed several resolutions calling on Iran to halt its uranium 
        enrichment and reprocessing activities and instituting rounds 
        of sanctions on Iran, taking all necessary measures to prevent 
        the supply of certain goods or technologies that could 
        contribute to Iran's uranium enrichment, reprocessing, or heavy 
        water-related activities, or to the development of a nuclear 
        weapon.
            (7) Iran is in violation of these UNSC resolutions.
            (8) Effective November 10, 2008, the Department of the 
        Treasury's Office of Foreign Assets Control (OFAC) revoked 
        authorization for ``U-turn'' transfers involving Iran. As of 
        that date, United States depository institutions are no longer 
        authorized to process transfers involving Iran that originate 
        and end with non-Iranian foreign banks.
            (9) According to a June 5, 2009, IAEA report, Iran ``has 
        not suspended its enrichment related activities or its work on 
        heavy water related projects as required by the Security 
        Council,'' nor has Iran ``cooperated with the [IAEA] in 
        connection with the remaining issues which give rise to 
        concerns and which need to be clarified to exclude the 
        possibility of military dimensions to Iran's nuclear 
        programme.''.
            (10) On September 25, 2009, President Obama, British Prime 
        Minister Brown, and French President Sarkozy revealed that Iran 
        has been covertly enriching uranium in Qom, Iran.
            (11) Iran had concealed the existence and purpose of the 
        Qom facility, and had not disclosed the Qom enrichment facility 
        to the IAEA until September 21, 2009.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the illicit nuclear activities of the Government of 
        Iran--combined with its development of unconventional weapons 
        and ballistic missiles, and support for international 
        terrorism--represent a serious threat to the security of the 
        United States and United States allies in Europe, the Middle 
        East, and around the world;
            (2) the United States should continue to support diplomatic 
        efforts in the International Atomic Energy Agency and the 
        United Nations Security Council (UNSC) to end Iran's illicit 
        nuclear activities;
            (3) the United Nations Security Council should take further 
        measures beyond UNSC Resolutions 1737, 1747, 1803, and 1835 to 
        tighten sanctions on Iran, including preventing new investment 
        in Iran's energy sector, as long as Iran fails to comply with 
        the international community's demand to halt its nuclear 
        enrichment campaign;
            (4) the United States should take all possible measures to 
        discourage and, if possible, prevent foreign banks from 
        providing export credits to foreign entities seeking to invest 
        in the Iranian energy sector;
            (5) the United States should encourage foreign governments 
        to direct state-owned entities to cease all investment in 
        Iran's energy sector and all exports of refined petroleum 
        products to Iran and to persuade, and, where possible, require 
        private entities based in their territories to cease all 
        investment in Iran's energy sector and all exports of refined 
        petroleum products to Iran;
            (6) moderate Arab countries have a vital and perhaps 
        existential interest in preventing Iran from acquiring nuclear 
        arms, and therefore such countries, particularly countries with 
        large oil deposits, should use their economic leverage to 
        dissuade other countries, including the Russian Federation and 
        the People's Republic of China, from assisting Iran's nuclear 
        program directly or indirectly and to persuade other countries, 
        including Russia and China, to be more forthcoming in 
        supporting UNSC efforts to halt Iran's nuclear program;
            (7) with Iran's economy weakened, effective economic 
        measures to isolate the regime may make the difference between 
        a diplomatic resolution and a nuclear standoff;
            (8) to make a diplomatic solution possible, international 
        firms doing business in Iran should not continue to provide the 
        last crutch of support to the Iranian economy; and
            (9) this Act seeks to prohibit those entities that do 
        business with the United States from doing business with Iran.

SEC. 4. PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS.

    (a) Certification Requirement.--The head of each executive agency 
shall ensure that each contract with a company entered into by such 
executive agency for the procurement of goods or services or agreement 
for the use of Federal funds as part of a grant, loan, or loan 
guarantee to a company, includes a clause that requires the company to 
certify to the contracting officer that the company does not conduct 
business operations in Iran described in section 7.
    (b) Remedies.--
            (1) In general.--The head of an executive agency may impose 
        remedies as provided in this subsection if the head of the 
        executive agency determines that the contractor has submitted a 
        false certification under subsection (a) after the date the 
        Federal Acquisition Regulation is revised pursuant to 
        subsection (e) to implement the requirements of this section.
            (2) Termination.--The head of an executive agency may 
        terminate a covered contract with a company upon the 
        determination of a false certification under paragraph (1).
            (3) Suspension and debarment.--The head of an executive 
        agency may debar or suspend a contractor from eligibility for 
        Federal contracts upon the determination of a false 
        certification under paragraph (1). The debarment period may not 
        exceed 3 years.
            (4) Inclusion on list of parties excluded from federal 
        procurement and nonprocurement programs.--The Administrator of 
        General Services shall include on the List of Parties Excluded 
        from Federal Procurement and Nonprocurement Programs maintained 
        by the Administrator under part 9 of the Federal Acquisition 
        Regulation issued under section 25 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 421) each contractor that is 
        debarred, suspended, proposed for debarment or suspension, or 
        declared ineligible by the head of an executive agency on the 
        basis of a determination of a false certification under 
        paragraph (1).
            (5) Rule of construction.--This section shall not be 
        construed to limit the use of other remedies available to the 
        head of an executive agency or any other official of the 
        Federal Government on the basis of a determination of a false 
        certification under paragraph (1).
    (c) Waiver.--
            (1) In general.--The President may waive the requirement of 
        subsection (a) on a case-by-case basis if the President 
        determines and certifies in writing to the appropriate 
        congressional committees that it is in the national interest to 
        do so.
            (2) Reporting requirement.--Not later than 120 days after 
        the date of the enactment of this Act and semi-annually 
        thereafter, the Administrator for Federal Procurement Policy 
        shall submit to the appropriate congressional committees a 
        report on waivers granted under paragraph (1).
    (d) Implementation Through the Federal Acquisition Regulation.--Not 
later than 120 days after the date of the enactment of this Act, the 
Federal Acquisition Regulation issued pursuant to section 25 of the 
Office of Federal Procurement Policy Act (41 U.S.C. 421) shall be 
revised to provide for the implementation of the requirements of this 
section.
    (e) Report.--Not later than one year after the date the Federal 
Acquisition Regulation is revised pursuant to subsection (e) to 
implement the requirements of this section, the Administrator of 
General Services, with the assistance of other executive agencies, 
shall submit to the Office of Management and Budget and the appropriate 
congressional committees a report on the actions taken under this 
section.

SEC. 5. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO PROHIBIT CONTRACTS.

    Notwithstanding any other provision of law, a State or local 
government may adopt and enforce measures to prohibit the State or 
local government, as the case may be, from entering into or renewing a 
contract for the procurement of goods or services with persons that are 
included pursuant to section 4(b)(4) on the most recently published 
list referred to in that section.

SEC. 6. SUNSET.

    This Act shall terminate 30 days after the date on which--
            (1) the President has certified to Congress that the 
        Government of Iran has ceased providing support for acts of 
        international terrorism and no longer satisfies the 
        requirements for designation as a state-sponsor of terrorism 
        for purposes of section 6(j) of the Export Administration Act 
        of 1979, section 620A of the Foreign Assistance Act of 1961, 
        section 40 of the Arms Export Control Act, or any other 
        provision of law; and
            (2) Iran has permanently ceased the pursuit, acquisition, 
        and development of nuclear, biological, and chemical weapons 
        and missiles.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Company.--The term ``company'' means--
                    (A) a sole proprietorship, organization, 
                association, corporation, partnership, limited 
                liability company, venture, or other entity, its 
                subsidiary or affiliate; and
                    (B) includes a company owned or controlled, either 
                directly or indirectly, by the government of a foreign 
                country, that is established or organized under the 
                laws of, or has its principal place of business in, 
                such foreign country and includes United States 
                subsidiaries of the same.
            (2) Affiliate.--The term ``affiliate'' means any individual 
        or entity that directly or indirectly controls, is controlled 
        by, or is under common control with, the company, including 
        without limitation direct and indirect subsidiaries of the 
        company.
            (3) Entity.--The term ``entity'' means a sole 
        proprietorship, a partnership, limited liability corporation, 
        association, trust, joint venture, corporation, or other 
        organization.
            (4) Federal funds.--The term ``Federal funds'' means a sum 
        of money or other resources derived from United States 
        taxpayers, which the United States Government may provide to 
        companies through government grants or loans, or through the 
        terms of a contract with the Federal Government, or through the 
        Emergency Economic Stabilization Act of 2008 ``Troubled Asset 
        Relief Program'' or other similar and related transaction 
        vehicles.
            (5) Business operations.--Business operations described in 
        this Act are business operations that--
                    (A) provide Iran with refined petroleum resources;
                    (B) sell, lease, or provide to Iran any goods, 
                services, or technology that would allow Iran to 
                maintain or expand its domestic production of refined 
                petroleum resources, including any assistance in 
                refinery construction, modernization, or repair;
                    (C) engage in any activity that could contribute to 
                the enhancement of Iran's ability to import refined 
                petroleum resources, including providing ships or 
                shipping services to deliver refined petroleum 
                resources to Iran, underwriting or otherwise providing 
                insurance or reinsurance for such activity, or 
                financing or brokering such activity;
                    (D) invest $20,000,000 or more (or any combination 
                of investments of at least $5,000,000 each, which in 
                the aggregate equals or exceeds $20,000,000 in any 12-
                month period), that directly and significantly 
                contributes to the enhancement of Iran's ability to 
                develop petroleum resources of Iran; and
                    (E) provides sensitive technology to the Government 
                of Iran.
            (6) Government of iran.--The term ``Government of Iran'' 
        includes the Government of Iran, any political subdivision, 
        agency, or instrumentality thereof, and any person owned or 
        controlled by, or acting for or on behalf of, the Government of 
        Iran.
            (7) Petroleum resources.--
                    (A) In general.--The term ``petroleum resources'' 
                includes petroleum, petroleum by-products, oil or 
                liquefied natural gas, oil or liquefied natural gas 
                tankers, and products used to construct or maintain 
                pipelines used to transport oil or compressed or 
                liquefied natural gas.
                    (B) Petroleum by-products.--The term ``petroleum 
                by-products'' means gasoline, kerosene, distillates, 
                propane or butane gas, diesel fuel, residual fuel oil, 
                and other goods classified in headings 2709 and 2710 of 
                the Harmonized Tariff Schedule of the United States.
            (8) Sensitive technology.--The term ``sensitive 
        technology'' means hardware, software, telecommunications 
        equipment, or any other technology that the President 
        determines may be used by the Government of Iran--
                    (A) to restrict the free flow of unbiased 
                information in Iran; or
                    (B) to disrupt, monitor, or otherwise restrict 
                speech by the people of Iran.
            (9) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Financial Services, the 
                Committee on Foreign Affairs, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives.
            (10) Executive agency.--The term ``executive agency'' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).

Summary: Accountability for Business Choices in Iran Act - Expresses the sense of Congress that: (1) Iran's illicit nuclear activities as well as development of unconventional weapons and ballistic missiles and support for international terrorism represent a serious threat to the security of the United States and its allies; (2) the United States should continue supporting diplomatic efforts in the International Atomic Energy Agency (IAEA) and the United Nations Security Council (UNSC) to end Iran's illicit nuclear activities; (3) the UNSC should take further measures beyond specified existing UNSC resolutions to tighten sanctions on Iran, including preventing new investment in Iran's energy sector as long as it fails to comply with international demands to halt its nuclear enrichment; and (4) the United States should discourage foreign banks and entities from investing in Iran's energy sector as well as seek to prohibit entities doing business with the United States from doing business with Iran.

Requires the head of each federal agency to ensure that each contract with a company for the procurement of goods and services contains a requirement for the company to certify that it is not conducting business operations in Iran. Defines "business operations" as operations that: (1) provide Iran with refined petroleum resources or technology that could enhance its ability to import or expand its domestic production of such resources; (2) invest $20 million or more in aIran's ability to develop petroleum resources; and (3) provide sensitive technology to Iran.

Authorizes a state or local government to adopt measures to prohibit them from entering into or renewing a contract for the procurement of goods or services with persons included on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs.

Terminates this Act 30 days after: (1) the President certifies to Congress that Iran has ceased support for acts of international terrorism and is no longer considered a state-sponsor of terrorism; and (2) Iran has permanently ceased the pursuit, acquisition, and development of nuclear, biological, and chemical weapons and missiles.