[Congressional Record Volume 153, Number 91 (Thursday, June 7, 2007)]
[Senate]
[Pages S7337-S7340]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. Brownback, Mr. Dodd, Mr. Obama, 
        Mr. Lieberman, Ms. Klobuchar, Ms. Mikulski, Mrs. Murray, Mr. 
        Nelson of Florida, Mr. Wyden, and Mrs. Clinton):
  S. 1563. A bill to require the disclosure of certain activities 
relating to the petroleum industry of Sudan, to increase the penalties 
for violations of sanctions provisions, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. DURBIN. Mr. President, the suffering in Darfur and Sudan on the 
continent of Africa continues today as it has every day for too many 
years. I rise again to urge my colleagues that we must do more to end 
this crisis in Sudan. Two weeks ago, before the Memorial Day recess, I 
came to the floor to highlight some of the positive steps taken thus 
far by Congress, the Bush administration, the business community, and 
nonprofits to pressure the Sudanese regime to end this genocide. I said 
then and I will repeat today: We must do more.
  In that speech I urged the President to follow through on what he 
promised to do in April at the Holocaust museum just down the street in 
Washington. To the President's credit, last week he took steps forward. 
He tightened United States economic sanctions on Sudan. He targeted 
sanctions against more individuals responsible for the violence, and he 
vowed to push for a strong new United Nations Security Council 
resolution that would further pressure the Sudanese regime. I applaud 
the President for his leadership. But I repeat, we must do more.
  On March 28, as Treasury Secretary Paulson testified in front of the 
Appropriations subcommittee I chair, I asked the Secretary: What 
resources does the Treasury Department need to put more pressure on the 
Sudanese Government to end the genocide? His answer:

       . . . We'd like the flexibility to charge a larger fine, 
     because $50,000 may not be enough.

  He was talking about civil and criminal penalties that violators of 
American sanctions on Sudan should face and the fact that the current 
penalties are not much of a deterrent. It was a concrete suggestion 
from the administration, and I agreed to accept his challenge. Based on 
that testimony, more discussions with the Treasury Department, the 
Securities and Exchange Commission, the State Department, and other 
agencies, we created the Sudan Disclosure and Enforcement Act which I 
introduce today. This act provides the administration and all Americans 
with more resources and tools and information so we can each do our 
part to end the genocide and bring peace to Darfur. It creates real 
consequences for those who support the Sudanese regime and, perhaps 
most importantly, it requires the administration and Congress to meet 
in 90 days to reassess the steps that need to be taken to help to end 
the crisis.
  For my colleagues who are considering supporting this legislation, 
here is what the bill will do in specifics: first, express the sense of 
Congress that the international community should continue to bring 
pressure against the Government of Sudan to convince that regime that 
the world would not allow this crisis to continue; second, authorize 
greater resources for the Office of

[[Page S7338]]

Foreign Assets Control within the Department of the Treasury to 
strengthen its capabilities in tracking Sudanese economic activity and 
pursuing sanctions violators; third, require more detailed SEC 
disclosures by United States listed companies that operate in the 
Sudanese petroleum sector so investors can make informed decisions 
regarding divestment from these companies; fourth, dramatically 
increase civil and criminal penalties for violating American economic 
sanctions to create a true deterrent against transacting with barred 
Sudanese companies; fifth, require the administration to report on the 
effectiveness of the current sanctions regime and recommend other steps 
Congress could take to help end the crisis.
  I am proud to introduce this legislation with bipartisan support. I 
particularly thank the ranking member of the Financial Services and 
General Government Appropriations Subcommittee, my friend and colleague 
Senator Sam Brownback of Kansas, for all of his great work on this 
issue. I am pleased to be joined by all of the other original 
cosponsors as well: Senators Dodd, who also chairs the Banking 
Committee and is a great ally; Senators Klobuchar, Mikulski, Bill 
Nelson, Obama, and Wyden.
  I urge all my colleagues on both sides of the aisle to join this 
effort. As we move around our States and visit parts of the country, 
occasionally a person will come up after a meeting and say to me: 
Senator, what are you doing about Darfur? Didn't your country, America, 
declare a genocide? What are you doing?
  Frankly, aside from speeches on the floor and an occasional 
resolution, bills of very little consequence, there hasn't been much to 
point to. I hope my colleagues who face that same question and worry 
that the response is so inadequate will take a good look at this 
legislation. I hope they will join me in cosponsoring this effort. We 
should pass this measure, work with our House colleagues and do the 
same, send this bill to the President. The President said in April:

       You who have survived evil know that the only way to defeat 
     it is to look it in the face and not back down. It is evil 
     that we are now seeing in Sudan, and we're not going to back 
     down.

  The President went on to say:

       No one who sees these pictures can doubt that genocide is 
     the only word for what is happening in Darfur and that we 
     have a moral obligation to stop it.

  I completely agree with the President. It has been more than 2\1/2\ 
years since the President called what is taking place in Darfur, Sudan 
by its rightful name--genocide. Yet even as an estimated 200,000 to 
400,000 people have been killed, even as over 2 million men, women, and 
tiny children have been forced from their homes by violence and 
killing, even as the violence continues as we meet in the safety and 
comfort of this great Nation, America and the entire international 
community have not done enough to help. We must do more. This bill 
moves in the right direction. It gives our Government the tools and the 
encouragement to act and act quickly.
  I urge my colleagues to support it.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1563

       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 ``Sudan Disclosure and 
     Enforcement Act of 2007''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) On July 22, 2004, the Senate passed Senate Concurrent 
     Resolution 133, 108th Congress, and the House of 
     Representatives passed House Concurrent Resolution 467, 108th 
     Congress, both resolutions declaring that ``the atrocities 
     unfolding in Darfur, Sudan, are genocide''.
       (2) On September 9, 2004, President Bush declared that ``we 
     have concluded that genocide has taken place in Darfur''.
       (3) On June 30, 2005, President Bush affirmed that ``the 
     violence in Darfur region is clearly genocide [and t]he human 
     cost is beyond calculation''.
       (4) On May 8, 2006, President Bush reaffirmed, ``We will 
     call genocide by its rightful name, and we will stand up for 
     the innocent until the peace of Darfur is secured.''.
       (5) On November 20, 2006, the Presidential Special Envoy to 
     Sudan, Andrew S. Natsios, stated in a briefing to members of 
     the press, ``And there's a point--January 1st is either we 
     see a change or we go to Plan B.''.
       (6) On February 20, 2007, Special Envoy Natsios stated in 
     an interview with the Council on Foreign Relations, ``We 
     needed to send a message to the Sudanese government that we 
     were no longer simply going to continue with the situation 
     the way it's been the last four years, that there was a 
     change. We are considering more aggressive measures should we 
     make no progress in the humanitarian area, in the political 
     negotiations, and in the implementation of Kofi Annan and Ban 
     Ki-moon's plan to introduce . . . additional forces.''.
       (7) On April 18, 2007, President Bush stated, ``It is evil 
     we are now seeing in Sudan--and we're not going to back 
     down.''.
       (8) The Government of Sudan, as of the date of the 
     introduction of this Act, has announced its willingness to 
     accept 3,000 United Nations peacekeepers and their equipment, 
     but has continued to obstruct the full-scale joint United 
     Nations-African Union peacekeeping mission authorized under 
     United Nations Security Council Resolution 1706 (2006) and to 
     prevent sufficient humanitarian access to meet the urgent 
     needs of the people of Darfur.
       (9) Congress supports the objectives of a ``Plan B'' as 
     outlined in the press and elsewhere to increase pressure on 
     the Government of Sudan to accept a greatly expanded 
     peacekeeping mission with a mandate to protect the people of 
     Darfur.

     SEC. 3. SENSE OF CONGRESS.

       It is the sense of Congress that the President should--
       (1) continue to work with other members of the 
     international community, including the Permanent Members of 
     the United Nations Security Council, the African Union, the 
     European Union, the Arab League, and the Government of Sudan 
     to facilitate the urgent deployment of a peacekeeping force 
     as called for by United Nations Security Council Resolution 
     1706 (2006); and
       (2) bring before the United Nations Security Council, and 
     call for a vote on, a resolution requiring meaningful 
     multilateral sanctions against the Government of Sudan in 
     response to its acts of genocide against the people of Darfur 
     and its continued refusal to allow the implementation of a 
     peacekeeping force as called for by Resolution 1706.

     SEC. 4. DEFINITIONS.

       In this Act:
       (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) Person.--The term ``person'' means an individual, 
     partnership, corporation, or other entity, including a 
     government or an agency of a government.
       (3) Sudan.--
       (A) Sudan.--The term ``Sudan'' means the Republic of Sudan 
     and any territory under the administration or control of the 
     Government of Sudan.
       (B) Southern sudan and designated areas.--The term 
     ``Southern Sudan and designated areas'' means Southern Sudan, 
     Southern Kordofan/Nuba Mountains State, Blue Nile State, 
     Abyei, or Darfur.

     SEC. 5. DISCLOSURE TO THE SEC OF ACTIVITIES RELATING TO THE 
                   PETROLEUM INDUSTRY IN SUDAN.

       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 of Activities Relating to the Petroleum 
     Industry in Sudan.--
       ``(1) In general.--Not later than 90 days after the date of 
     the enactment of this subsection, the Securities and Exchange 
     Commission shall promulgate rules requiring any person 
     described in paragraph (2) to disclose to the Securities and 
     Exchange Commission--
       ``(A) activities described in paragraph (3) if such 
     activities result in gross receipts to or total investments 
     from such person of $1,000,000 or more a year; and
       ``(B) the geographic area within Sudan where such 
     activities occurred, and specifically if such activities took 
     place solely within Southern Sudan and designated areas.
       ``(2) Person described.--A person, as defined in paragraph 
     (6)(C), is described in this paragraph if the person--
       ``(A) is an issuer of securities registered under section 
     12; and
       ``(B) either--
       ``(i) engages in or facilitates activities described in 
     paragraph (3); or
       ``(ii) controls or is controlled by a person that engages 
     in or facilitates activities described in paragraph (3).
       ``(3) Activities described.--An activity described in this 
     paragraph is the exploration, development, extraction, 
     processing, exportation, or sale of petroleum products 
     produced in Sudan.
       ``(4) Waiver.--The President may waive the disclosure 
     requirements described in paragraph (1) for periods not to 
     exceed 1 year if the President--
       ``(A) determines that such a waiver is in the national 
     interest of the United States; and

[[Page S7339]]

       ``(B) not later than 7 days before granting the waiver, 
     reports to the appropriate congressional committees regarding 
     the intention of the President to waive the disclosure 
     requirements described in paragraph (1) and the reasons the 
     waiver is in the national interest of the United States.
       ``(5) Termination of disclosure requirements.--The 
     disclosure requirements described in paragraph (1) shall 
     terminate if the Secretary of State--
       ``(A) determines that the Government of Sudan no longer 
     provides support for acts of international terrorism for 
     purposes of--
       ``(i) section 40 of the Arms Export Control Act (22 U.S.C. 
     2780);
       ``(ii) section 620A of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2371); and
       ``(iii) section 6(j) of the Export Administration Act of 
     1979 (50 U.S.C. App. 2405(j)), as in effect pursuant to the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.); and
       ``(B) certifies to the appropriate congressional committees 
     that the Government of Sudan has demonstrated significant 
     improvement in protecting the civilian population of Darfur, 
     such as by allowing a substantial United Nations-African 
     Union peacekeeping mission with the mandate and means to 
     protect civilians and allow for the safe return of persons 
     displaced by the violence in Darfur.
       ``(6) Definitions.--In this subsection:
       ``(A) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(i) the Committee on Appropriations, the Committee on 
     Foreign Relations, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate; and
       ``(ii) the Committee on Appropriations, the Committee on 
     Foreign Affairs, and the Committee on Financial Services of 
     the House of Representatives.
       ``(B) Control.--The term `control' means--
       ``(i) in the case of a corporation, to hold at least 50 
     percent (by vote or value) of the capital structure of the 
     corporation; and
       ``(ii) in the case of any other entity, to hold interests 
     representing at least 50 percent of the capital structure of 
     the entity.
       ``(C) Is controlled by.--The term `is controlled by' 
     means--
       ``(i) in the case of a corporation, to have at least 50 
     percent (by vote or value) of the capital structure of the 
     corporation held by another person; and
       ``(ii) in the case of any other entity, to have interests 
     representing at least 50 percent of the capital structure of 
     the entity held by another person.
       ``(D) Foreign person.--The term `foreign person' means a 
     person--
       ``(i) in the case of an individual, who is an alien; 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.
       ``(E) Person.--
       ``(i) In general.--The term `person' means an individual, 
     partnership, corporation, or other entity, including a 
     government or an agency of a government.
       ``(ii) Exception.--The term `person' does not include--

       ``(I) any person engaging solely in transactions or 
     activities in Sudan that are authorized or exempted pursuant 
     to the Sudanese Sanctions Regulations (part 538 of title 31, 
     Code of Federal Regulations);
       ``(II) foreign nongovernmental organizations (except 
     agencies of the Government of Sudan) that--

       ``(aa) have consultative status with the United Nations 
     Economic and Social Council; or
       ``(bb) have been accredited by a department or specialized 
     agency of the United Nations; or

       ``(III) a foreign person whose business activities in Sudan 
     are strictly limited to providing goods and services that 
     are--

       ``(aa) intended to relieve human suffering;
       ``(bb) intended to promote welfare, health, religious, or 
     spiritual activities;
       ``(cc) used for educational or humanitarian purposes;
       ``(dd) used for journalistic activities; or
       ``(ee) used for such other purposes as the Secretary of 
     State may determine serve the foreign policy interests of the 
     United States.
       ``(F) Sudan.--
       ``(i) Sudan.--The term `Sudan' means the Republic of Sudan 
     and any territory under the administration or control of the 
     Government of Sudan.
       ``(ii) Southern sudan and designated areas.--The term 
     `Southern Sudan and designated areas' means Southern Sudan, 
     Southern Kordofan/Nuba Mountains State, Blue Nile State, 
     Abyei, or Darfur.''.

     SEC. 6. INCREASED PENALTIES FOR VIOLATIONS OF IEEPA.

       (a) In General.--Section 206 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1705) is amended to read as 
     follows:

     ``SEC. 206. PENALTIES.

       ``(a) Unlawful Acts.--It shall be unlawful for a person to 
     violate, attempt to violate, conspire to violate, or cause a 
     violation of any license, order, regulation, or prohibition 
     issued under this title.
       ``(b) Civil Penalty.--A civil penalty may be imposed on any 
     person who commits an unlawful act described in subsection 
     (a) in an amount not to exceed the greater of--
       ``(1) $250,000; or
       ``(2) an amount that is twice the amount of the transaction 
     that is the basis of the violation with respect to which the 
     penalty is imposed.
       ``(c) Criminal Penalty.--A person who willfully commits, 
     willfully attempts to commit, or willfully conspires to 
     commit, or aids or abets in the commission of, an unlawful 
     act described in subsection (a) shall, upon conviction, be 
     fined not more than $1,000,000, or if a natural person, may 
     be imprisoned for not more than 20 years, or both.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     applies to violations described in section 206 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1705) 
     with respect to which enforcement action is pending or 
     commenced on or after the date of the enactment of this Act.

     SEC. 7. REPORT ON AND PUBLIC DISCLOSURE OF ACTIVITIES IN THE 
                   PETROLEUM INDUSTRY OF SUDAN.

       (a) Report on Activities Relating to the Petroleum Industry 
     of Sudan.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of the Treasury, in 
     consultation with the Secretary of State, the Secretary of 
     Energy, and the Director of National Intelligence, shall 
     prepare and submit to the appropriate congressional 
     committees a written report on the overall impact of economic 
     sanctions on the Government of Sudan and the crisis in 
     Darfur.
       (2) Contents of report.--The report required by paragraph 
     (1) shall include--
       (A) the name of persons identified by the Office of Foreign 
     Assets Control as specially designated nationals; and
       (B) the economic and political impact of sanctions on the 
     Government of Sudan.
       (3) Form of report.--The report shall be submitted in 
     unclassified form, but may contain a classified annex 
     relating to the assessment under paragraph (2)(B).
       (b) Briefing on Report.--Not later than 14 days after 
     submitting the report required by subsection (a), the 
     Secretary of the Treasury, the Secretary of State, the 
     Secretary of Energy, the Director of National Intelligence, 
     and representatives of the Securities and Exchange Commission 
     shall brief the appropriate congressional committees on the 
     contents of the report.
       (c) Disclosure on SEC Website.--
       (1) In general.--Not later than 14 days after promulgating 
     the rules required by section 13(m) of the Securities 
     Exchange Act of 1934, as added by section 5, the Securities 
     and Exchange Commission shall make available on its website, 
     in an easily accessible and searchable format, the 
     information collected pursuant to the disclosure requirements 
     of such section 13(m), including--
       (A) the names of persons that made disclosures under such 
     section 13(m);
       (B) the specific activities related to the petroleum 
     industry of Sudan in which such persons engaged; and
       (C) the geographic area within Sudan where such activities 
     occurred, and specifically if such activities took place 
     solely within Southern Sudan and designated areas.
       (2) Maintenance.--The Securities and Exchange Commission 
     shall maintain and update regularly the information on the 
     website of the Commission under paragraph (1).
       (d) Government Procurement Contracts.--
       (1) In general.--Not later than 45 days after the 
     submission of the report required by subsection (a), the 
     Administrator of General Services shall determine whether the 
     United States Government has in effect a contract for the 
     procurement of goods or services with any person identified 
     in the report required by subsection (a).
       (2) Report.--If the Administrator determines that the 
     United States Government has in effect a contract for the 
     procurement of goods or services with a person identified in 
     the report required by subsection (a), the Administrator 
     shall submit to the appropriate congressional committees a 
     report--
       (A) naming each person identified in the report required by 
     subsection (a);
       (B) the nature of the contract; and
       (C) the dollar amount of the contract.

     SEC. 8. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OFAC.

       (a) In General.--There are authorized to be appropriated 
     $2,000,000 to the Office of Foreign Assets Control for fiscal 
     year 2008, to support intelligence gathering, licensing, 
     compliance, and administrative activities associated with the 
     enforcement of sanctions against Sudan and persons operating 
     in Sudan.
       (b) Supplement Not Supplant.--Funds appropriated pursuant 
     to the authority of subsection (a) shall be used to 
     supplement and not supplant other amounts authorized to be 
     appropriated for the Office of Foreign Assets Control.

     SEC. 9. NOTIFICATION OF TERMINATION OF SANCTIONS.

       (a) In General.--Not later than 15 days after the date on 
     which any sanction described in subsection (b) is terminated, 
     the President shall publish in the Federal Register notice 
     that such sanction has been terminated.
       (b) Sanctions Described.--A sanction described in this 
     subsection is a sanction imposed pursuant to--
       (1) the Darfur Peace and Accountability Act of 2006 (Public 
     Law 109-344; 50 U.S.C. 1701 note);
       (2) the Comprehensive Peace in Sudan Act of 2004 (Public 
     Law 108-497; 50 U.S.C. 1701 note);

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       (3) the Sudan Peace Act (Public Law 107-245; 50 U.S.C. 1701 
     note);
       (4) the International Emergency Economic Powers Act (50 
     U.S.C. 1701 et seq.);
       (5) chapter 5 of title 31, Code of Federal Regulations; or
       (6) any other provision of law, regulation, or executive 
     order relating to Sudan.

     SEC. 10. REPEAL.

       Section 6305 of the U.S. Troop Readiness, Veterans' Care, 
     Katrina Recovery, and Iraq Accountability Appropriations Act, 
     2007 (Public Law 110-28) is repealed.
                                 ______