This bill seeks to prohibit government dealings with businesses associated with Azerbaijan, particularly in response to the detention of Dr. Gubad Ibadoghlu, an economist and political activist critical of the Azerbaijani government. It establishes a framework for identifying individuals and entities engaged in "prohibited activities" in Azerbaijan, which includes business operations with the Azerbaijani government or support for its actions against Dr. Ibadoghlu. The Department of the Treasury is responsible for creating and maintaining a regularly updated list of these individuals and entities, who will be ineligible for various state contracts, economic development subsidies, and other government benefits.

Furthermore, the bill imposes penalties for false certifications regarding engagement in prohibited activities, including civil penalties and potential contract termination. It mandates compliance from state agencies, local contracting units, and educational institutions, requiring them to report any false certifications to the Attorney General. The legislation also restricts investments from state pension funds in companies linked to the Azerbaijani government and prohibits banking relationships with such entities. The act will take effect immediately and will expire upon the release of Dr. Ibadoghlu from detention.