An original bill to authorize State and local governments to divest assets in companies that conduct business operations in Sudan, to prohibit United States Government contracts with such companies.
Detailed Summary
<b>(This measure has not been amended since it was passed by the Senate on December 12, 2007. The summary of that version is repeated here.)</b>
Sudan Accountability and Divestment Act of 2007 - (Sec. 2) Defines specified terms.
(Sec. 3) Expresses the sense of Congress that the U.S. government should support a state or local government decision to divest from or prohibit the investment of state or local assets in a person determined to pose a financial or reputational risk.
Authorizes a state or local government to divest state or local assets or prohibit investment of state or local assets in persons that are conducting or have direct investments in business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment.
Expresses the sense of Congress that a state or local government should not adopt any such measure without verification that the person conducts or has direct investments in such business operations.
Excludes from such business operations those operations that: (1) are conducted under contract directly and exclusively with the regional government of southern Sudan; (2) are conducted under a license from the Office of Foreign Assets Control or are exempted under federal law from such license requirement; (3) provide goods or services to marginalized populations of Sudan; (4) provide goods or services to an internationally recognized peacekeeping force or humanitarian organization; (5) provide goods or services to promote health or education; (6) are conducted by a person that has also undertaken significant humanitarian efforts; or (7) have been voluntarily suspended.
Requires that a state or local government notify the Department of Justice respecting a divestiture decision.
States that a state or local divestiture action under this Act is not preempted by any federal law or regulation.
(Sec. 4) Amends the Investment Company Act of 1940 to prohibit a person (including the federal government or a state or local government) from bringing a civil, criminal, or administrative action against any registered investment company, or any employee, officer, director, or investment adviser of such company, based solely upon the investment company divesting from or avoiding investing in securities issued by persons that conduct or have investments in certain business operations in Sudan.
States that such prohibition shall not apply to: (1) actions for breaches of fiduciary duties; and (2) a registered investment company, or any employee, officer, director, or investment adviser of such company unless the company makes disclosures in accordance Securities and Exchange Commission (SEC) regulations required by this Act.
(Sec. 5) Expresses the sense of Congress that a fiduciary of an employee benefit plan (as defined by the Employee Retirement Income Security Act of 1974 (ERISA)) may divest plan assets from or avoid investing plan assets in any person conducting certain business operations in Sudan.
(Sec. 6) Requires that companies seeking U.S. government contracts certify that they are not conducting certain business operations in Sudan. Sets forth the following federal remedies for a false certification: (1) terminating the contract; (2) suspending a contractor's eligibility for future contractors; and (3) debarring a company from government contracts for up to three years. Authorizes the President to waive such requirement if in the national interest.
(Sec. 7) Expresses the sense of Congress that other countries should adopt measures similar to those contained in this Act.
(Sec. 8) Expresses the sense of Congress that the President should: (1) work with the international community to facilitate the deployment of a peacekeeping force to Sudan; and (2) call for a vote on a U.N. Security Council resolution imposing multilateral sanctions on Sudan in response to the ongoing genocide in Darfur.
(Sec. 9) Expresses the sense of Congress that this Act does not conflict with current U.S. international obligations, or article VI, clause 2 (supremacy clause) of the Constitution.
(Sec. 10) Directs the Secretaries of State and the Treasury report on the efficacy of current sanctions on Sudan.
(Sec. 11) Amends the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 to repeal a specified reporting requirement by the Secretary of the Treasury.
(Sec. 12) Terminates sections 3, 4, 5, 6, and 10 of this Act 30 days after the President certifies to Congress that Sudan has honored its commitments to: (1) abide by Security Council Resolution 1769; (2) cease attacks on civilians; (3) demobilize and demilitarize the Janjaweed and associated militias; (4) grant free access for delivery of humanitarian assistance; and (5) allow for the safe and voluntary return of refugees and internally displaced persons.
Status of the Legislation
Latest Major Action: 12/31/2007: Signed by President.
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