Short title

This Act may be cited as the

Sudan Divestment Authorization Act of 2007

Findings

Congress makes the following findings: (1)On July 22, 2004, the Senate and the House of Representatives passed concurrent resolutions declaring that the atrocities unfolding in Darfur, Sudan, are genocide. (2)On June 30, 2005, President Bush affirmed that the violence in Darfur region is clearly genocide [and t]he human cost is beyond calculation. (3)The Darfur Peace and Accountability Act of 2006, which was signed into law on October 13, 2006, reaffirms that the genocide unfolding in the Darfur region of Sudan is characterized by acts of terrorism and atrocities directed against civilians, including mass murder, rape, and sexual violence committed by the Janjaweed and associated militias with the complicity and support of the National Congress Party-led faction of the Government of Sudan. (4)Several States and governmental entities, through legislation and other means, have expressed their desire, or are considering measures— (A)to divest any equity in, or to refuse to provide debt capital to, certain companies that operate in Sudan; and (B)to disassociate themselves and the beneficiaries of their public pension and endowment funds from directly or indirectly supporting the Darfur genocide. (5)Efforts of States and other governmental entities to divest their pension funds and other investments of companies that operate in Sudan build upon the legal and historical legacy of the anti-apartheid movement in the United States, a movement which contributed to the end of apartheid in South Africa and the holding of free elections in that country in 1994. (6)Although divestment measures should be employed judiciously and sparingly, declarations of genocide by Congress and the President justify such action.

Sense of Congress

It is the sense of Congress that— (1)States and other governmental entities should be permitted to provide for the divestment of certain State assets within their jurisdictions as an expression of opposition to the genocidal actions and policies of the Government of Sudan; and (2)a divestment measure authorized under section 5 does not violate the United States Constitution because such a measure— (A)is not preempted under the Supremacy Clause; (B)does not constitute an undue burden on foreign or interstate commerce under the Commerce Clause; and (C)does not intrude on, or interfere with, the conduct of foreign affairs of the United States.

Definitions

In this Act: (1)

Assets

The term assets means any public pension, retirement, annuity, or endowment fund, or similar instrument, managed by a State. (2)

Company

The term company means any natural person, legal person, sole proprietorship, organization, association, corporation, partnership, firm, joint venture, franchisor, franchisee, financial institution, utility, public franchise, trust, enterprise, limited partnership, limited liability partnership, limited liability company, or other business entity or association, including all wholly-owned subsidiaries, majority-owned subsidiaries, parent companies, or affiliates of such business entities or associations. (3)

Company with a qualifying business relationship with Sudan

The term company with a qualifying business relationship with Sudan— (A)means any company— (i)that is wholly or partially managed or controlled, either directly or indirectly, by the Government of Sudan or any of its agencies, including political units and subdivisions; (ii)that is established or organized under the laws of the Government of Sudan; (iii)whose domicile or principal place of business is in Sudan; (iv)that is engaged in business operations that provide revenue to the Government of Sudan; (v)that owns, maintains, sells, leases, or controls property, assets, equipment, facilities, personnel, or any other apparatus of business or commerce in Sudan, including ownership or possession of real or personal property located in Sudan; (vi)that transacts commercial business, including the provision or obtaining of goods or services, in Sudan; (vii)that has distribution agreements with, issues credits or loans to, or purchases bonds of commercial paper issued by— (I)the Government of Sudan; or (II)any company whose domicile or principal place of business is in Sudan; (viii)that invests in— (I)the Government of Sudan; or (II)any company whose domicile or principal place of business is in Sudan; or (ix)that is fined, penalized, or sanctioned by the Office of Foreign Assets Control of the Department of the Treasury for violating any Federal rule or restriction relating to Sudan after the date of the enactment of this Act; and (B)does not include— (i)nongovernmental organizations (except agencies of Sudan), which— (I)have consultative status with the United Nations Economic and Social Council; or (II)have been accredited by a department or specialized agency of the United Nations; (ii)companies that operate in Sudan under a permit or other authority of the United States; (iii)companies whose business activities in Sudan are strictly limited to the provision of goods and services that are— (I)intended to relieve human suffering; (II)intended to promote welfare, health, religious, or spiritual activities; (III)used for educational purposes; (IV)used for humanitarian purposes; or (V)used for journalistic activities. (4)

Government of sudan

The term Government of Sudan— (A)means— (i)the government in Khartoum, Sudan, which is led by the National Congress Party (formerly known as the National Islamic Front); or (ii)any successor government formed on or after the date of the enactment of this Act, including the Government of National Unity, established in 2005 as a result of the Comprehensive Peace Agreement for Sudan; and (B)does not include the regional Government of Southern Sudan. (5)

State

The term State means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and any department, agency, public university or college, county, city, village, or township of such governmental entity.

Authorization for certain State and local divestment measures

(a)

In general

Notwithstanding any other provision of law, any State may adopt measures to prohibit any investment of State assets in the Government of Sudan or in any company with a qualifying business relationship with Sudan, during any period in which the Government of Sudan, or the officials of such government are subject to sanctions authorized under— (1)the Sudan Peace Act (Public Law 107–245); (2)the Comprehensive Peace in Sudan Act of 2004 (Public Law 108–497); (3)the USA PATRIOT Improvement and Reauthorization Act of 2005 (Public Law 109–177); (4)the Darfur Peace and Accountability Act of 2006 (Public Law 109–344); or (5)any other Federal law or executive order. (b)

Applicability

Subsection (a) shall apply to measures adopted by a State before, on, or after the date of the enactment of this Act.