[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 891 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 891

To require annual disclosure to the Securities and Exchange Commission 
     of activities involving columbite-tantalite, cassiterite, and 
    wolframite from the Democratic Republic of Congo, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 23, 2009

 Mr. Brownback (for himself, Mr. Durbin, and Mr. Feingold) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To require annual disclosure to the Securities and Exchange Commission 
     of activities involving columbite-tantalite, cassiterite, and 
    wolframite from the Democratic Republic of Congo, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congo Conflict Minerals Act of 
2009''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Democratic Republic of Congo was devastated by a 
        civil war carried out in 1996 and 1997 and a war that began in 
        1998 and ended in 2003, which resulted in widespread human 
        rights violations and the intervention of multiple armed forces 
        or armed non-state actors from other countries in the region.
            (2) Despite the signing of a peace agreement and subsequent 
        withdrawal of foreign forces in 2003, the eastern region of the 
        Democratic Republic of Congo has continued to suffer from high 
        levels of poverty, insecurity, and a culture of impunity, in 
        which illegal armed groups and military forces continue to 
        commit widespread human rights abuses.
            (3) According to a study by the International Rescue 
        Committee released in January 2008, conflict and related 
        humanitarian crisis in the Democratic Republic of Congo have 
        resulted in the deaths of an estimated 5,400,000 people since 
        1998 and continue to cause as many as 45,000 deaths each month.
            (4) Sexual violence and rape remain pervasive tools of 
        warfare used by all parties in eastern region of the Democratic 
        Republic of Congo to terrorize and humiliate communities, 
        resulting in community break down which causes a decrease in 
        the ability of affected communities to resist control by 
        illegal armed forces and a loss of community access to 
        minerals. Sexual violence and rape affect hundreds of thousands 
        of women and girls, frequently resulting in traumatic fistula, 
        other severe genital injuries, and long-term psychological 
        trauma.
            (5) A report released by the Government Accountability 
        Office in December 2007 describes how the mismanagement and 
        illicit trade of extractive resources from the Democratic 
        Republic of Congo supports conflict between militias and armed 
        domestic factions in neighboring countries.
            (6) In October 2002, the United Nations Group of Experts on 
        the Democratic Republic of Congo called on member states of the 
        United Nations to adopt measures, consistent with the 
        guidelines established for multinational enterprises by the 
        Organization for Economic Co-operation and Development, to 
        ensure that enterprises in their jurisdiction do not abuse 
        principles of conduct that they have adopted as a matter of 
        law.
            (7) In February 2008, the United Nations Group of Experts 
        on the Democratic Republic of Congo stated, ``individuals and 
        entities buying mineral output from areas of the eastern part 
        of the Democratic Republic of Congo with a strong rebel 
        presence are violating the sanctions regime when they do not 
        exercise due diligence to ensure their mineral purchases do not 
        provide assistance to illegal armed groups'' and defined due 
        diligence as including the following:
                    (A) Determining the precise identity of the 
                deposits from which the minerals they intend to 
                purchase have been mined.
                    (B) Establishing whether or not these deposits are 
                controlled or taxed by illegal armed groups.
                    (C) Refusing to buy minerals known to originate, or 
                suspected to originate, from deposits controlled or 
                taxed by illegal armed groups.
            (8) In its final report, released on December 12, 2008, the 
        United Nations Group of Experts on the Democratic Republic of 
        the Congo found that official exports of columbite-tantalite, 
        cassiterite, wolframite, and gold are grossly undervalued and 
        that various illegal armed groups in the eastern region of the 
        Democratic Republic of Congo continue to profit greatly from 
        these natural resources by coercively exercising control over 
        mining sites from where they are extracted and locations along 
        which they are transported for export.
            (9) United Nations Security Council Resolution 1857, 
        unanimously adopted on December 22, 2008--
                    (A) broadens existing sanctions relating to the 
                Democratic Republic of Congo to include ``individuals 
                or entities supporting the illegal armed groups . . . 
                through illicit trade of natural resources,''; and
                    (B) encourages member countries to ensure that 
                companies handling minerals from the Democratic 
                Republic of Congo exercise due diligence on their 
                suppliers.
            (10) Continued weak governance in the Democratic Republic 
        of Congo has allowed the illicit trade in the minerals 
        columbite-tantalite, cassiterite, wolframite, and gold to 
        flourish, which empowers illegal armed groups, undermines local 
        development, and results in a loss or misuse of tax revenue for 
        the Government of the Democratic Republic of Congo. The 
        development of stronger governance and economic institutions 
        that support legitimate cross-border trade in such minerals 
        would--
                    (A) help prevent the exploitation of such minerals 
                by illegal armed groups; and
                    (B) enable the hundreds of thousands of people who 
                depend on such minerals for their livelihoods to 
                benefit from such minerals.
            (11) Metals derived from columbite-tantalite, cassiterite, 
        wolframite, and gold from the Democratic Republic of Congo are 
        used in diverse technological products sold worldwide, 
        including mobile telephones, laptop computers, and digital 
        video recorders.
            (12) In February 2009, the Electronic Industry Citizenship 
        Coalition and the Global e-Sustainability Initiative released a 
        statement asserting that--
                    (A) use by the information communications 
                technology industry of mined commodities that support 
                conflict in such countries as the Democratic Republic 
                of Congo is unacceptable; and
                    (B) electronics companies can and should uphold 
                responsible practices in their operations and work with 
                suppliers to meet social and environmental standards 
                with respect to the raw materials used in the 
                manufacture of their products.
            (13) Notwithstanding the extensiveness of the supply chains 
        of technological products and the extensiveness of the 
        processing stages for the metals derived from columbite-
        tantalite, cassiterite, wolframite, and gold used in such 
        products, companies that create and sell products that include 
        such metals have the ability to influence the situation in the 
        Democratic Republic of Congo by--
                    (A) exercising due diligence in ensuring that their 
                suppliers provide raw materials in a manner that does 
                not--
                            (i) directly finance armed conflict;
                            (ii) result in labor or human rights 
                        violations; or
                            (iii) damage the environment;
                    (B) verifying--
                            (i) the country from which the minerals 
                        used to derive such metals originate;
                            (ii) the identity of the exporter of the 
                        minerals; and
                            (iii) that all appropriate tax payments are 
                        made; and
                    (C) committing to support mineral exporters from 
                the Democratic Republic of Congo who--
                            (i) fully disclose their export payments; 
                        and
                            (ii) certify that their minerals do not--
                                    (I) directly finance armed 
                                conflict;
                                    (II) result in labor or human 
                                rights violations; or
                                    (III) damage the environment.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States, as affirmed by the 
Democratic Republic of Congo Relief, Security, and Development 
Promotion Act of 2006 (Public Law 109-456; 22 U.S.C. 2151 note) and 
consistent with United Nations Security Council Resolution 1857 (2008), 
to promote peace and security in the eastern Democratic Republic of 
Congo by supporting efforts of the Government of the Democratic 
Republic of Congo, other governments in the Great Lakes Region of 
Africa, and the international community--
            (1) to monitor and stop commercial activities involving the 
        natural resources of the Democratic Republic of Congo that 
        contribute to illegal armed groups and human rights violations 
        in the Democratic Republic of Congo; and
            (2) to develop stronger governance and economic 
        institutions that can facilitate and improve transparency in 
        the cross-border trade involving the natural resources of the 
        Democratic Republic of Congo in order to reduce exploitation by 
        illegal armed groups and promote local and regional 
        development.

SEC. 4. INVESTIGATION, REPORTS, AND STRATEGY REGARDING COLUMBITE-
              TANTALITE, CASSITERITE, WOLFRAMITE, GOLD, AND HUMAN 
              RIGHTS ABUSES IN THE DEMOCRATIC REPUBLIC OF CONGO.

    (a) Support of Mandate of United Nations Group of Experts on the 
Democratic Republic of Congo.--The President, acting through the 
Secretary of State, the United States Permanent Representative to the 
United Nations, and other appropriate United States Government 
officials, shall use the voice and vote of the United States at the 
United Nations Security Council to renew the mandate and strengthen the 
capacity of the United Nations Group of Experts on the Democratic 
Republic of Congo to investigate links between natural resources and 
the financing of illegal armed groups, and ensure that the Group of 
Experts' recommendations are given serious consideration.
    (b) Map of Mineral-Rich Zones and Armed Groups in Democratic 
Republic of Congo.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the Secretary of State shall, 
        consistent with the recommendation from the United Nations 
        Group of Experts on the Democratic Republic of Congo in their 
        December 2008 report, work with other member states of the 
        United Nations and local and international nongovernmental 
        organizations--
                    (A) to produce a map of mineral-rich zones and 
                armed groups in the eastern region of the Democratic 
                Republic of Congo; and
                    (B) to make such map available to the public.
            (2) Updates.--The Secretary of State shall update the map 
        required by paragraph (1) not less frequently than once every 
        180 days until the Secretary of State certifies that no armed 
        party to any ongoing armed conflict in the Democratic Republic 
        of Congo or any other country is involved in the mining, sale, 
        or export of columbite-tantalite, cassiterite, wolframite, or 
        gold, or the control thereof, or derives benefits from such 
        activities.
    (c) Guidance for Commercial Entities.--The Secretary of State 
shall, consistent with the recommendation from the United Nations Group 
of Experts on the Democratic Republic of Congo in their December 2008 
report, work with other member states of the United Nations and local 
and international nongovernmental organizations to provide guidance to 
commercial entities seeking to exercise due diligence on their 
suppliers to ensure that the raw materials used in their products do 
not--
            (1) directly finance armed conflict;
            (2) result in labor or human rights violations; or
            (3) damage the environment.
    (d) Strategy.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of State shall, 
        working with the Administrator of the United States Agency for 
        International Development, submit to the appropriate 
        congressional committees a strategy to address the linkages 
        that exist between human rights abuses, armed groups, and the 
        mining of columbite-tantalite, cassiterite, wolframite, and 
        gold in the Democratic Republic of Congo.
            (2) Contents.--The strategy required by paragraph (1) shall 
        include the following:
                    (A) A plan to assist the Government of the 
                Democratic Republic of Congo and other governments in 
                the region in establishing and effectively implementing 
                the necessary frameworks and institutions to formalize 
                and improve transparency in the trade of columbite-
                tantalite, cassiterite, wolframite, and gold.
                    (B) An outline of assistance currently being 
                provided and an assessment of future assistance that 
                could be provided by the Government of the United 
                States to help the Government of the Democratic 
                Republic of Congo strengthen the management and export 
                of natural resources in the eastern region of the 
                Democratic Republic of Congo.
                    (C) A description of punitive measures that could 
                be taken against individuals or entities whose 
                commercial activities are supporting illegal armed 
                groups and human rights violations in eastern 
                Democratic Republic of Congo.
    (e) Annual Human Rights Reports.--In preparing those portions of 
the annual Country Reports on Human Rights Practices relating to the 
Democratic Republic of Congo or countries that share a border with the 
Democratic Republic of Congo, the Secretary of State shall ensure that 
such reports include a description of any instances or patterns of 
practice that indicate that the extraction and cross-border trade in 
columbite-tantalite, cassiterite, wolframite, or gold has negatively 
affected human rights conditions or supported specific human rights 
violations, sexual or gender-based violence, or labor abuses in the 
eastern region of the Democratic Republic of Congo, during the period 
covered by each report.
    (f) Annual Organization for Economic Co-Operation and Development 
Investment Committee Report.--In preparing the United States' annual 
report to the Organization for Economic Co-operation and Development 
Investment Committee, the Secretary of State shall include a 
description of efforts by the United States to ensure, consistent with 
the Organization for Economic Co-operation and Development Guidelines 
for Multinational Enterprises, that enterprises under United States 
jurisdiction are exercising due diligence to ensure that their 
purchases of minerals or metals are not originating from mines and 
trading routes that are used to finance or benefit illegal armed groups 
in the Democratic Republic of Congo.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of State for fiscal year 2010 such sums 
as may be necessary for the Secretary to carry out the provisions of 
this section.
    (h) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Appropriations, the Committee 
                on Foreign Relations, and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate; and
                    (B) the Committee on Appropriations, the Committee 
                on Foreign Affairs, and the Committee on Financial 
                Services of the House of Representatives.
            (2) Human rights reports.--The term ``Human Rights 
        Reports'' means all reports submitted by the Secretary of State 
        to Congress under sections 116 and 502B of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2151n and 2304).

SEC. 5. DISCLOSURE TO SECURITIES AND EXCHANGE COMMISSION OF ACTIVITIES 
              RELATING TO COLUMBITE-TANTALITE, CASSITERITE, AND 
              WOLFRAMITE INDUSTRIES.

    Section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) 
is amended by adding at the end the following new subsection:
    ``(m) Disclosure to Commission of Activities Relating to Columbite-
Tantalite, Cassiterite, and Wolframite Industries.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this subsection, the Commission shall 
        promulgate rules requiring any person described in paragraph 
        (2)--
                    ``(A) to disclose annually to the Commission the 
                country of origin of columbite-tantalite, cassiterite, 
                or wolframite related to any of the activities 
                described in paragraph (3); and
                    ``(B) if disclosure is required under subparagraph 
                (A) and the country of origin disclosed under 
                subparagraph (A) is the Democratic Republic of Congo or 
                an adjoining country, to disclose annually to the 
                Commission the mine of origin of such columbite-
                tantalite, cassiterite, and wolframite.
            ``(2) Person described.--A person is described in this 
        paragraph if the person--
                    ``(A) is required to file reports to the Commission 
                under subsection (a); and
                    ``(B) either--
                            ``(i) engages in activities described in 
                        paragraph (3); or
                            ``(ii) controls a person that engages in 
                        activities described in paragraph (3).
            ``(3) Activities described.--An activity described in this 
        paragraph is--
                    ``(A) the commercial exploration, extraction, 
                importation, exportation, or sale of columbite-
                tantalite, cassiterite, or wolframite; or
                    ``(B) the use of such minerals, derivatives of such 
                minerals, components that include such minerals, or 
                components that include derivatives of such minerals in 
                the manufacture of a product for sale.
            ``(4) Revisions and waivers.--The Commission may revise or 
        temporarily waive the requirements described in paragraph (1) 
        if the Commission determines that such revision or waiver is--
                    ``(A) necessary for the protection of investors; 
                and
                    ``(B) in the public interest.
            ``(5) Termination of disclosure requirements.--The 
        disclosure requirements of this subsection shall terminate if 
        the President--
                    ``(A) determines that--
                            ``(i) no armed party to any ongoing armed 
                        conflict in the Democratic Republic of Congo or 
                        any other country--
                                    ``(I) is involved in an activity 
                                described in paragraph (3)(A) with 
                                respect to columbite-tantalite, 
                                cassiterite, or wolframite; or
                                    ``(II) derives benefits from such 
                                activity; or
                            ``(ii) a regional framework has been 
                        established and effectively implemented to 
                        monitor and regulate the activities described 
                        in paragraph (3)(A) with respect to columbite-
                        tantalite, cassiterite, or wolframite in the 
                        Democratic Republic of Congo so that such 
                        activities do not finance or benefit illegal 
                        armed groups; and
                    ``(B) notifies the Commission of the determination 
                under subparagraph (A).
            ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated to the Commission for fiscal year 2010 such 
        sums as may be necessary for the Commission to carry out the 
        provisions of this subsection.
            ``(7) Definitions.--In this subsection, the following 
        definitions shall apply:
                    ``(A) Adjoining country.--The term `adjoining 
                country', with respect to the Democratic Republic of 
                Congo, means a country that shares an internationally 
                recognized border with the Democractic Republic of 
                Congo.
                    ``(B) Control.--The term `control' means--
                            ``(i) in the case of a corporation, 
                        ownership of at least 50 percent of the voting 
                        stock of the corporation; and
                            ``(ii) in the case of any other entity, 
                        ownership of interests representing at least 50 
                        percent of the voting capital of the entity.
                    ``(C) Foreign person.--The term `foreign person' 
                means a person--
                            ``(i) in the case of an individual, who is 
                        an alien as such term is defined in section 
                        101(a) of the Immigration and Nationality Act 
                        (8 U.S.C. 1101(a)); or
                            ``(ii) in the case of a partnership, 
                        corporation, or other entity, that is organized 
                        under the laws of a foreign country or that has 
                        its principal place of business in a foreign 
                        country.
                    ``(D) Person.--The term `person' has the meaning 
                given the term in section 3(a) but does not include--
                            ``(i) any foreign nongovernmental 
                        organization that--
                                    ``(I) has consultative status with 
                                the United Nations Economic and Social 
                                Council; or
                                    ``(II) has been accredited by a 
                                department or specialized agency of the 
                                United Nations; or
                            ``(ii) a foreign person whose business 
                        activities are strictly limited to providing 
                        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 or 
                                humanitarian purposes;
                                    ``(IV) used for journalistic 
                                activities; or
                                    ``(V) used for such other purposes 
                                as the Secretary of State may determine 
                                serve the foreign policy interests of 
                                the United States.''.

SEC. 6. SENSE OF CONGRESS ON ASSISTANCE FOR AFFECTED COMMUNITIES AND 
              SUSTAINABLE LIVELIHOODS.

    (a) Sense of Congress on Assistance for Affected Communities.--It 
is the sense of Congress that the Administrator of the United States 
Agency for International Development should expand and better 
coordinate programs to assist and empower communities in the eastern 
Democratic Republic of Congo whose livelihoods depend on the mineral 
trade, particularly--
            (1) communities affected by sexual and gender-based 
        violence; and
            (2) individuals displaced by violence.
    (b) Sense of Congress on Future Year Funding.--It is the sense of 
Congress that the Secretary of State and the Administrator should work 
with the appropriate congressional committees to increase assistance in 
fiscal years beginning after fiscal year 2009 for communities affected 
by violence in the Democratic Republic of Congo, specifically--
            (1) to provide medical treatment, psychological support, 
        and rehabilitation assistance for survivors of sexual and 
        gender-based violence;
            (2) to provide humanitarian relief and basic services to 
        people displaced by violence;
            (3) to improve living conditions and livelihood prospects 
        for artisanal miners and mine workers; and
            (4) to alleviate poverty by reconstructing infrastructure 
        and revitalizing agricultural production.
    (c) Sense of Congress on Coordination of Assistance.--It is the 
sense of Congress that the United States should work with other 
countries, on a bilateral and multilateral basis--
            (1) to increase protection and services for communities in 
        the eastern Democratic Republic of Congo at risk of human 
        rights violations associated with the mineral trade, 
        particularly women and girls;
            (2) to strengthen the management and trade of natural 
        resources in the Democratic Republic of Congo; and
            (3) to improve the conditions and livelihood prospects of 
        artisan miners and mine workers.

SEC. 7. REPORT.

    Not later than 2 years after the date of the enactment of this Act, 
the Comptroller General of the United States shall submit to Congress a 
report that includes the following:
            (1) An assessment of the effectiveness of the provisions of 
        this Act and section 13(m) of the Securities Exchange Act of 
        1934 (15 U.S.C. 78m(m)), as added by section 5, in promoting 
        peace and security in accordance with section 3.
            (2) A description of the problems, if any, encountered by 
        the President, officials described in section 4(a), the 
        Securities and Exchange Commission, and the Administrator of 
        the United States Agency for International Development in 
        carrying out the provisions of this Act and such section 13(m).
            (3) A description of the adverse impacts of carrying out 
        the provisions of this Act and such section 13(m), if any, on 
        communities in the eastern Democratic Republic of Congo.
            (4) Recommendations for legislative or regulatory actions 
        that can be taken--
                    (A) to improve the effectiveness of the provisions 
                of this Act and such section 13(m) to promote peace and 
                security in accordance with section 3;
                    (B) to resolve the problems described pursuant to 
                paragraph (2), if any; and
                    (C) to mitigate the adverse impacts described 
                pursuant paragraph (3), if any.
                                 <all>