text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Accountability and Responsibility in 
  Contracting Act''.
  
  SEC. 2. INELIGIBILITY OF EXPATRIATED CORPORATIONS FOR FEDERAL CONTRACT 
                AWARDS.
  
      (a) In General.--No acquiring corporation or any subsidiary of such 
  a corporation that enters into a corporate expatriation transaction 
  shall be eligible to be awarded a Federal contract.
      (b) Period of Ineligibility.--The period of ineligibility under 
  subsection (a) shall be 3 years, beginning on the date of completion of 
  the corporate expatriation transaction.
      (c) Exception for Repatriated Corporations.--If an acquiring 
  corporation reorganizes as a domestic corporation within one year after 
  the date of the enactment of this Act under the applicable 
  incorporation laws of a State, subsection (a) shall not apply.
      (d) Definitions.--In this Act:
              (1) Corporate expatriation transaction.--(A) The term 
          ``corporate expatriation transaction''--
                      (i) means any transaction if--
                              (I) a foreign corporation (referred to in 
                          this section as the ``acquiring corporation'') 
                          acquires, as a result of such transaction, 
                          directly or indirectly substantially all of the 
                          properties held directly or indirectly by a 
                          domestic corporation; and
                              (II) immediately after the transaction, 
                          more than 80 percent of the stock (by vote or 
                          value) of the acquiring corporation is held by 
                          former shareholders of the domestic corporation 
                          by reason of holding stock in the domestic 
                          corporation; and
                      (ii) includes any transaction if--
                              (I) a foreign corporation acquires, as a 
                          result of such transaction, directly or 
                          indirectly properties constituting a trade or 
                          business of a domestic partnership;
                              (II) immediately after the transaction, 
                          more than 80 percent of the stock (by vote or 
                          value) of the acquiring corporation is held by 
                          former partners of the domestic partnership or 
                          related foreign partnership (determined without 
                          regard to stock of the acquiring corporation 
                          which is sold in a public offering related to 
                          the transaction); and
                              (III) the acquiring corporation meets the 
                          requirements of clauses (i) and (ii) of 
                          subparagraph (B).
              (B) Subclause (II) of subparagraph (A)(i) shall be applied 
          by substituting ``50 percent'' for ``80 percent'' with respect 
          to any foreign corporation if--
                      (i) such corporation does not have substantial 
                  business activities (when compared to the total 
                  business activities of the expanded affiliated group) 
                  in the foreign country in which or under the law of 
                  which the corporation is created or organized; and
                      (ii) the stock of the corporation is publicly 
                  traded and the principal market for the public trading 
                  of such stock is in the United States.
              (C) For purposes of this paragraph--
                      (i) a series of related transactions shall be 
                  treated as 1 transaction; and
                      (ii) stock held by members of the expanded 
                  affiliated group which includes the acquiring 
                  corporation shall not be taken into account in 
                  determining ownership.
              (2) Domestic.--The term ``domestic'' means created or 
          organized in the United States or under the law of the United 
          States or of any State.
              (3) Expanded affiliated group.--The term ``expanded 
          affiliated group'' means an affiliated group as defined in 
          section 1504(a) of the Internal Revenue Code of 1986, without 
          regard to section 1504(b) of such Code.
      (e) Applicability.--This section shall apply with respect to a 
  corporate expatriation transaction occurring before, on, or after the 
  date of the enactment of this Act.
      (f) Waiver.--
              (1) In general.--Subject to paragraph (2), the President 
          may waive this section with respect to any specific contract if 
          the President certifies to Congress that the waiver is required 
          in the interest of national security.
              (2) Report.--The President may not carry out a waiver under 
          paragraph (1) until a period of 30 days has expired after the 
          President submits to Congress a report containing the 
          certification described in paragraph (1) and setting forth the 
          rationale for the waiver.
  
  SEC. 3. INELIGIBILITY FOR FEDERAL CONTRACT AWARDS OF COMPANIES DOING 
                BUSINESS WITH, AND COMPANIES WITH FOREIGN SUBSIDIARIES 
                DOING BUSINESS WITH, STATE SPONSORS OF TERRORISM OR 
                FOREIGN TERRORIST ORGANIZATIONS.
  
      (a) In General.--No entity doing business with a state sponsor of 
  terrorism or foreign terrorist organization, and no entity with a 
  foreign subsidiary doing business with a state sponsor of terrorism or 
  foreign terrorist organization, shall be eligible to be awarded a 
  Federal contract.
      (b) Period of Ineligibility.--The period of ineligibility under 
  subsection (a), as determined by the head of the executive agency 
  entering into the contract concerned, in cooperation with the Secretary 
  of State, shall be--
              (1) 3 years for a first offense;
              (2) 10 years for a second offense; and
              (3) 15 years for any offense after a second offense,
  beginning on the date of certification under subsection (c) or (d).
      (c) Certification for Current Contracts.--Each executive agency 
  shall require, for each contract with the agency that is in effect on 
  the date of the enactment of this Act, that the contractor certify in 
  writing that the contractor, the contractor's domestic parent company, 
  and all other domestic subsidiaries of the domestic parent company did 
  not do business, and did not own a foreign subsidiary that did 
  business, during the 10-year period ending on the date of the enactment 
  of this Act, with a state sponsor of terrorism or a foreign terrorist 
  organization. A certification that the contractor, the parent, or other 
  subsidiaries did do such business, or did own one or more foreign 
  subsidiaries that did such business, shall be considered a first 
  offense under subsection (b).
      (d) Certification for Future Contracts.--Each executive agency 
  shall require, as a condition of entering into a contract after the 
  date of the enactment of this Act, that a potential contractor certify 
  in writing that the potential contractor, the potential contractor's 
  domestic parent company, and all other domestic subsidiaries of the 
  domestic parent company is not doing business, and does not own a 
  foreign subsidiary that is doing business, or has done business within 
  the last ten years, with a state sponsor of terrorism or a foreign 
  terrorist organization. Each certification that the potential 
  contractor, the parent, or other subsidiaries is doing such business, 
  or owned one or more foreign subsidiaries doing such business currently 
  or in the last ten years, shall be considered a separate offense under 
  subsection (b).
      (e) Complaints.--
              (1) In general.--Citizens may file complaints with 
          executive agencies regarding Federal contractors.
              (2) Report.--The head of each executive agency shall submit 
          to Congress an annual report on the complaints received by 
          citizens under this subsection, including the nature of the 
          complaint and the manner in which the agency handled the 
          complaint.
      (f) Definitions.--In this section:
              (1) Executive agency.--The term ``executive agency'' has 
          the meaning provided in section 102 of title 31, United States 
          Code.
              (2) Foreign subsidiary.--The term ``foreign subsidiary'' 
          means any foreign entity owned or controlled (directly or 
          indirectly) by a potential contractor.
              (3) State sponsor of terrorism.--The term ``state sponsor 
          of terrorism'' means any government which the Secretary of 
          State has determined, 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 other provision of law, is a government that has 
          provided support for acts of international terrorism.
              (4) Foreign terrorist organization.--The term ``foreign 
          terrorist organization'' means a foreign terrorist organization 
          designated under section 219 of the Immigration and Nationality 
          Act (8 U.S.C. 1189).
target: Accountability and Responsibility in Contracting Act - Prohibits any acquiring corporation or any subsidiary of any such a corporation that enters into a corporate expatriation transaction (as defined by this Act) from being eligible to be awarded a Federal contract for a three-year period, unless the acquiring corporation reorganizes as a domestic corporation under the applicable incorporation laws of a State.
  
  Prohibits any entity and any entity with a foreign subsidiary doing business with a state sponsor of terrorism or foreign terrorist organization from being eligible to be awarded a Federal contract for a period of: (1) three years for a first offense; (2) ten years for a second offense; and (3) 15 years for any offense after a second offense.
  
  Directs each executive agency to require certification from a current contractor that the contractor, the contractor's domestic parent company and all other domestic subsidiaries of the parent did not do business, and did not own a foreign subsidiary that did business, during the ten-year period ending on this Act's enactment with such a state sponsor or organization.
  
  Directs each executive agency to require certification from a potential contractor, that the potential contractor, the potential contractor's domestic parent company, and all other domestic subsidiaries of the parent is not doing business, and does not own a foreign subsidiary that is doing business, or has done business within the last ten years, with such a state sponsor or organization. Permits citizens to file complaints with executive agencies regarding Federal contractors and requires annual reporting on the complaints to Congress.
feat_title: To make ineligible for Federal contract awards any expatriated corporations and any companies that do business with, or own foreign subsidiaries that do business with, state sponsors of terrorism or foreign terrorist organizations.