109th CONGRESS
2d Session
H. R. 6140
To require the identification of companies that conduct business
operations in Sudan, to prohibit United States Government contracts with
such companies, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
September 21, 2006
Ms. LEE (for herself, Ms. PELOSI, Mr. LANTOS, Mr. RANGEL, Mr. HONDA, Mr.
OLVER, Mr. MCDERMOTT, Ms. NORTON, Ms. WATERS, Mrs. CHRISTENSEN, Mr. SERRANO,
Mr. DAVIS of Illinois, Ms. KILPATRICK of Michigan, Mr. OWENS, Ms. MILLENDER-MCDONALD,
Mr. CUMMINGS, Mr. MEEKS of New York, Mr. WATT, Mr. CONYERS, Mr. FATTAH,
Mr. PAYNE, Mr. MEEHAN, Mr. BLUMENAUER, Mr. AL GREEN of Texas, Mr. VAN HOLLEN,
Ms. CARSON, Mr. STARK, Ms. JACKSON-LEE of Texas, Mr. ROTHMAN, Mr. BERMAN,
Mr. WEINER, Mrs. DAVIS of California, Ms. LINDA T. SANCHEZ of California,
Mr. MEEK of Florida, Mr. KENNEDY of Rhode Island, Ms. SCHAKOWSKY, Mr. JEFFERSON,
Ms. EDDIE BERNICE JOHNSON of Texas, Mr. MORAN of Virginia, Mr. PRICE of
North Carolina, Ms. DELAURO, Mr. LEWIS of Georgia, Mr. THOMPSON of Mississippi,
Mr. CLYBURN, Ms. MOORE of Wisconsin, Mr. KUCINICH, Ms. SOLIS, Mr. HINCHEY,
Mr. WEXLER, Mr. MCGOVERN, Mr. ENGEL, Mr. DELAHUNT, Mr. GRIJALVA, Mr. CAPUANO,
and Ms. WATSON) introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on Government
Reform, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To require the identification of companies that conduct business
operations in Sudan, to prohibit United States Government contracts with
such companies, 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 `Darfur Accountability and Divestment Act of
2006'.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In the 108th Congress, the House of Representatives adopted House
Concurrent Resolution 467 on July 22, 2004, by a unanimous vote of 422-0,
which--
(A) declares that the atrocities unfolding in the Darfur region of Sudan,
are genocide;
(B) declares that the Government of Sudan has violated the Convention
on the Prevention and Punishment of the Crime of Genocide;
(C) urges the Administration to seriously consider multilateral intervention
to stop genocide in Darfur should the United Nations Security Council
fail to act; and
(D) calls on the Administration to impose targeted sanctions, including
visa bans and the freezing of assets of the Sudanese National Congress
and affiliated business and individuals directly responsible for the
atrocities in Darfur.
(2) In the 109th Congress, the House of Representatives passed H.R. 3127,
the Darfur Peace and Accountability Act of 2006, on April 5, 2006, by
a vote of 416-3, which--
(A) appeals to the international community, including the United Nations,
the European Union, and the North Atlantic Treaty Organization (NATO),
to immediately mobilize sufficient political, military, and financial
resources to support and expand the African Union Mission in Sudan (AMIS);
(B) blocks assets and restricts travel of any individual the President
determines is responsible for acts of genocide, war crimes, or crimes
against humanity in the Darfur region of Sudan; and
(C) offers United States support for the International Criminal Court's
efforts to prosecute those responsible for acts of genocide in Darfur.
(3) On September 9, 2004, former Secretary of State Colin Powell stated
before the Committee on Foreign Relations of the Senate that genocide
was being committed in the Darfur region of Sudan and that the Government
of Sudan and the government-supported Janjaweed militias bear responsibility
for the genocide.
(4) On September 21, 2004, President George W. Bush affirmed the Secretary
of State's finding in an address before the United Nations General Assembly,
stating that the world is witnessing terrible suffering and horrible crimes
in the Darfur region of Sudan, crimes the Government of the United States
has concluded are genocide.
(5) Although the Government of the United States currently bans United
States companies from conducting business operations in Sudan, millions
of Americans are inadvertently supporting the Government of Sudan by investing
in foreign companies that conduct business operations in Sudan that disproportionately
benefit the Sudanese regime in Khartoum.
(6) Illinois, New Jersey, Oregon, and Maine have passed legislation mandating
divestment of State funds from companies that conduct business operations
in Sudan. California, Massachusetts, Rhode Island, North Carolina, Kansas,
Wisconsin, Indiana, Georgia, Maryland, New York, Iowa, and Texas have
considered or are considering legislation to divest State funds from companies
that conduct business operations in Sudan. Connecticut, Ohio, and Vermont
have passed non-binding divestment legislation with respect to Sudan.
Arizona, Louisiana, Missouri, and Pennsylvania have adopted screening
processes for investments in companies that conduct business operations
in countries that are sponsors of terrorism, including Sudan.
(7) Providence, Rhode Island and New Haven, Connecticut have passed legislation
mandating divestment of city funds from companies that conduct business
operations in Sudan.
(8) Amherst, Boston University, Brandeis, Brown, Columbia, Dartmouth,
Harvard, Middlebury, Oberlin, Princeton, the Reconstructionist Rabbinical
College, Samford, Simmons, Smith, Stanford, Trinity, the University of
California, the University of Maryland, the University of Pennsylvania,
the University of Southern California, the University of Vermont, the
University of Washington, Williams, and Yale have divested their funds
from, or placed restrictions on investment of their funds in, certain
companies that conduct business operations in Sudan.
(9) No American should have to worry that his or her investments or pension
money was earned in support of genocide.
(10) Divestment has proven effective in similar situations, as in 1986,
when State pension funds and university endowments were divested from
companies that conducted business operations in South Africa, which was
critical to ending apartheid in that country, and by 1994, when the first
free elections in South Africa took place, a substantial number of States,
counties, cities, universities and colleges in the United States had adopted
partial or total divestment policies.
(11) The only type of pressure shown to be effective against Sudan is
economic pressure against the Government of Sudan, such as the imposition
of sanctions and divestment. Sudan has cooperated with the United States
on counterterrorism efforts due to United States sanctions imposed on
Sudan in 1997 and Sudan agreed to negotiations with the Sudan People's
Liberation Army of South Sudan that resulted in the Comprehensive Peace
Agreement of 2005 due in part to a successful divestment campaign against
Talisman Energy, Incorporated of Canada.
(12) Congress acknowledges that divestment should be used sparingly and
under extraordinary circumstances. This Act is based on unique circumstances,
specifically, the reprehensible and abhorrent genocide occurring in Sudan.
(13) The business operations of companies in countries that perpetrate
grave abuses of human rights, especially the uniquely monstrous crime
of genocide, are of material financial concern to United States investors
even when these operations represent a small fraction of a company's total
business.
(14) State and city pension funds have routinely but unsuccessfully sought
to acquire and utilize data from the Federal Government on companies for
investment decisions.
(15) The deteriorating security situation in the Darfur region of Sudan
indicates that the people of Darfur cannot wait long for security to be
reestablished.
SEC. 3. STATEMENT OF POLICY.
Congress recognizes and supports--
(1) States and cities that have divested or are in the process of divesting
State and city funds from companies that conduct business operations in
Sudan; and
(2) United States colleges and universities that have divested their funds
from, or placed restrictions on investments of their funds in, companies
that conduct business operations in Sudan.
SEC. 4. IDENTIFICATION OF COMPANIES CONDUCTING BUSINESS OPERATIONS IN
SUDAN.
(a) Identification- The Securities and Exchange Commission, acting through
the Division of Corporation Finance, shall require all companies trading
in securities that are registered under section 12 of the Securities Exchange
Act of 1934 (15 U.S.C. 78l) which, either directly or through a parent or
subsidiary company, including partly-owned subsidiaries, conduct business
operations in Sudan to disclose the nature of their business operations
in Sudan, including--
(1) the existence and nature of business relationships and investments
with national, regional, and local governments;
(2) business activities with government or government-controlled entities;
(3) business operations relating to the sale of military equipment or
inherently `dual-use' technology, such as civilian radar systems;
(4) business operations relating to natural resource extraction, including
oil-related activities and mining of minerals; and
(5) safeguards to ensure business operations do not become indirectly
involved in the terrorist-sponsoring or genocidal policies of the Government
of Sudan.
(b) Investigation by Government Accountability Office- The Comptroller General
of the Government Accountability Office shall investigate the existence
and extent of all Federal Retirement Thrift Investment Board investments
in companies identified pursuant to subsection (a).
(1) SEC REPORT- Not later than 90 days after the date of the enactment
of this Act, and annually thereafter, the Securities and Exchange Commission
shall prepare and submit to Congress a report that contains the names
of the companies and a description of their business operations identified
under subsection (a).
(2) GAO REPORT- Not later than 180 days after the date of the enactment
of this Act, and annually thereafter, the Comptroller General of the Government
Accountability Office shall prepare and submit to Congress a report that
contains the names of the companies and a description of the amount of
Federal Retirement Thrift Investment Board investments in such companies
identified under subsection (b).
(d) Publication on Websites-
(1) SEC WEBSITE- The Securities and Exchange Commission shall maintain
a list of the names of the companies identified under subsection (a) on
the website of the Securities and Exchange Commission.
(2) GAO WEBSITE- The Comptroller General of the Government Accountability
Office shall maintain a list of the names of the companies identified
under subsection (b) on the website of the Government Accountability Office.
SEC. 5. PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS.
(a) Prohibition- Notwithstanding any other provision of law, the Government
of the United States shall not enter into or renew a contract for the procurement
of goods or services with any company identified under section 4(a).
(b) Exception- The prohibition in subsection (a) shall not apply with respect
to a company identified under section 4(a) whose business operations in
Sudan are limited to activities or transactions relating to--
(1) southern Sudan, southern Kordofan/Nuba Mountains State, Blue Nile
State, or Abyei;
(2) the implementation of the Darfur Peace Agreement of May 5, 2006;
(3) the provision of military equipment to be used by nongovernmental
organizations in the Darfur region of Sudan, the African Union Mission
in Sudan (AMIS), or the United Nations; or
(4) the provision of humanitarian assistance that is of immediate and
substantial benefit to--
(A) the majority of people of the Darfur region of Sudan; or
(B) the majority of people of eastern Sudan, including the Red Sea,
Kassala, and Gedaref States.
(c) Waiver- The President may waive the prohibition in subsection (a) on
a case-by-case basis if the President determines and certifies in writing
to Congress that it is important to the national security interests of the
United States to do so.
SEC. 6. RULE OF CONSTRUCTION.
Nothing in this Act or any other provision of law shall be construed to
preempt any State law that prohibits investment of State funds, including
State pension funds, in or relating to Sudan.
SEC. 7. DEFINITIONS.
(1) BUSINESS OPERATIONS- The term `business operations' means maintaining,
selling, or leasing equipment, facilities, personnel, or any other apparatus
of business or commerce, including the ownership or possession of real
or personal property.
(2) COMPANY- The term `company'--
(A) means a sole proprietorship, organization, association, corporation,
partnership, venture, or other entity, its subsidiary or affiliate that
exists for profit-making purposes or to otherwise secure economic advantage;
and
(B) includes a company owned or controlled, either directly or indirectly,
by the government of a foreign country, that is established or organized
under the laws of, or has its principal place of business in, such foreign
country.
(3) GOVERNMENT OF SUDAN- The term `Government of Sudan' means the Government
of Sudan located in Khartoum or its instrumentalities.
(4) INVESTMENT- The term `investment' means the purchase, ownership, or
control of stock of a company, association, or corporation, the capital
stock of a mutual water company or corporation, bonds issued by the government
or a political subdivision of a foreign country, corporate bonds or other
debt instruments issued by a company, or the commitment of funds or other
assets to a company, including a loan or extension of credit to that company.
(5) MILITARY EQUIPMENT- The term `military equipment' means weapons, arms,
or military defense supplies.
(6) OIL-RELATED ACTIVITIES- The term `oil-related activities' includes
the export of oil, extracting or producing oil, exploration for oil, or
the construction or maintenance of a pipeline, refinery, or other oil
field infrastructure.
(7) SUDAN- The term `Sudan' means the Republic of Sudan, a territory under
the administration or control of the Government of Sudan, including the
Darfur region, or an individual, company, or public agency located in
Khartoum, northern Sudan, or the Nile River Valley that supports the Republic
of the Sudan.
END
