Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''No Defense Contracts for Terror
Profiteers Act of 2016''.

SEC. 2. LIMITATION ON USE OF FUNDS AVAILABLE TO THE DEPARTMENT OF
DEFENSE FOR FISCAL YEAR 2017 TO PROCURE, OR ENTER INTO
ANY CONTRACT FOR THE PROCUREMENT OF, ANY GOODS OR
SERVICES FROM PERSONS THAT PROVIDE MATERIAL SUPPORT TO
CERTAIN IRANIAN PERSONS.

(a) Limitation.--No funds available to the Department of Defense
for fiscal year 2017 may be used to procure, or enter into any contract
for the procurement of, any goods or services from any person that
provides material support to, including engaging in a significant
transaction or transactions with, a covered Iranian person during such
fiscal year.
(b) Certification.--The Federal Acquisition Regulation shall be
revised to require a certification from each person that is a
prospective contractor that such person does not engage in any of the
conduct described in subsection (a). Such revision shall apply with
respect to contracts in an amount greater than the simplified
acquisition threshold (as defined in section 134 of title 41, United
States Code) for which solicitations are issued on or after the date
that is 90 days after the date of the enactment of this Act.
(c) Waiver.--The Secretary of Defense, in consultation with the
Secretary of State and the Secretary of the Treasury, may, on a case-
by-case basis, waive the limitation in subsection (a) with respect to a
person if the Secretary of Defense, in consultation with the Secretary
of State and the Secretary of the Treasury--
(1) determines that the waiver is important to the national
security interest of the United States; and
(2) submits to the appropriate committees of Congress a
notification of, and detailed justification for, the waiver not
less than 30 days before the date on which the waiver is to
take effect.
(d) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
''appropriate committees of Congress'' means--
(A) the Committee on Armed Services and the
Committee on Foreign Relations of the Senate; and
(B) the Committee on Armed Services and the
Committee on Foreign Affairs of the House of
Representatives.
(2) Covered iranian person.--The term ''covered Iranian
person'' means an Iranian person that--
(A) is included on the list of specially designated
nationals and blocked persons maintained by the Office
of Foreign Assets Control of the Department of the
Treasury and the property and interests in property of
which are blocked pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
for acting on behalf of or at the direction of, or
being owned or controlled by, the Government of Iran;
(B) is included on the list of persons identified
as blocked solely pursuant to Executive Order 13599; or
(C) in the case of an Iranian person described in
paragraph (3)(B)--
(i) is owned, directly or indirectly, by--
(I) Iran's Revolutionary Guard
Corps, or any agent or affiliate
thereof; or
(II) one or more other Iranian
persons that are included on the list
of specially designated nationals and
blocked persons as described in
subparagraph (A) if such Iranian
persons collectively own a 25 percent
or greater interest in the Iranian
person; or
(ii) is controlled, managed, or directed,
directly or indirectly, by Iran's Revolutionary
Guard Corps, or any agent or affiliate thereof,
or by one or more other Iranian persons
described in clause (i)(II).
(3) Iranian person.--The term ''Iranian person'' means--
(A) an individual who is a national of Iran; or
(B) an entity that is organized under the laws of
Iran or otherwise subject to the jurisdiction of the
Government of Iran.
(4) Person.--The term ''person'' has the meaning given such
term in section 560.305 of title 31, Code of Federal
Regulations, as such section 560.305 was in effect on April 22,
2016.
(5) Significant transaction or transactions.--The term
''significant transaction or transactions'' shall be
determined, for purposes of this section, in accordance with
section 561.404 of title 31, Code of Federal Regulations, as
such section 561.404 was in effect on January 1, 2016.
Student:
No Defense Contracts for Terror Profiteers Act of 2016 This bill prohibits funds available to the Department of Defense (DOD) for FY2017 from being used to procure, or enter into a contract to procure, goods or services from any person that provides material support to a covered Iranian person during such fiscal year. A "covered Iranian person" includes an Iranian person that is: (1) included on the list of designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury for acting on behalf of, or being owned or controlled by, the government of Iran; or (2) owned or controlled by Iran's Revolutionary Guard Corps. The bill requires the Federal Acquisition Regulation to be revised to require a person with a prospective contract of more than $100,000 to certify that the person does not engage in prohibited conduct with a covered Iranian person. DOD may, on a case-by-case basis, waive such prohibition for national security reasons but must provide Congress with notice before the waiver takes effect.