PUBLIC LAW 110–174—DEC. 31, 2007 

SUDAN ACCOUNTABILITY AND DIVESTMENT 

ACT OF 2007 


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121 STAT. 2516 PUBLIC LAW 110–174—DEC. 31, 2007 

Public Law 110–174 

110th Congress 

An Act 

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, 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 ‘‘Sudan Accountability and Divestment Act of 2007’’. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means— 

(A) the Committee on Banking, Housing, and Urban 

Affairs, the Committee on Foreign Relations, and the Select 

Committee on Intelligence of the Senate; and 

(B) the Committee on Financial Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives. 

(2) BUSINESS OPERATIONS.—The term ‘‘business operations’’ 

means engaging in commerce in any form in Sudan, including 

by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, 

products, services, personal property, real property, or any other 

apparatus of business or commerce. 

(3) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 

the meaning given the term in section 4 of the Office of Federal 

Procurement Policy Act (41 U.S.C. 403). 

(4) GOVERNMENT OF SUDAN.—The term ‘‘Government of 

Sudan’’— 

(A) means the government in Khartoum, Sudan, which 

is led by the National Congress Party (formerly known 

as the National Islamic Front) or any successor government 

formed on or after October 13, 2006 (including the coalition 

National Unity Government agreed upon in the Comprehensive Peace Agreement for Sudan); and 

(B) does not include the regional government of 

southern Sudan. 

(5) MARGINALIZED POPULATIONS OF SUDAN.—The term 

‘‘marginalized populations of Sudan’’ refers to— 

(A) adversely affected groups in regions authorized 

to receive assistance under section 8(c) of the Darfur Peace 

Sudan 

Accountability 

and Divestment 

Act of 2007. 

50 USC 1701 

note. 

Dec. 31, 2007 

[S. 2271] 


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PUBLIC LAW 110–174—DEC. 31, 2007 121 STAT. 2517 

and Accountability Act (Public Law 109–344; 50 U.S.C. 

1701 note); and 

(B) marginalized areas in Northern Sudan described 

in section 4(9) of such Act. 

(6) MILITARY EQUIPMENT.—The term ‘‘military equipment’’ 

means— 

(A) weapons, arms, military supplies, and equipment 

that readily may be used for military purposes, including 

radar systems or military-grade transport vehicles; or 

(B) supplies or services sold or provided directly or 

indirectly to any force actively participating in armed conflict in Sudan. 

(7) MINERAL EXTRACTION ACTIVITIES.—The term ‘‘mineral 

extraction activities’’ means exploring, extracting, processing, 

transporting, or wholesale selling or trading of elemental minerals or associated metal alloys or oxides (ore), including gold, 

copper, chromium, chromite, diamonds, iron, iron ore, silver, 

tungsten, uranium, and zinc. 

(8) OIL-RELATED ACTIVITIES.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the term ‘‘oil-related activities’’ means— 

(i) exporting, extracting, producing, refining, processing, exploring for, transporting, selling, or trading 

oil; and 

(ii) constructing, maintaining, or operating a pipeline, refinery, or other oilfield infrastructure. 

(B) EXCLUSIONS.—A person shall not be considered 

to be involved in an oil-related activity if— 

(i) the person is involved in the retail sale of gasoline or related consumer products in Sudan but is 

not involved in any other activity described in subparagraph (A); or 

(ii) the person is involved in leasing, or owns, 

rights to an oil block in Sudan but is not involved 

in any other activity described in subparagraph (A). 

(9) PERSON.—The term ‘‘person’’ means— 

(A) a natural person, corporation, company, business 

association, partnership, society, trust, any other nongovernmental entity, organization, or group; 

(B) any governmental entity or instrumentality of a 

government, including a multilateral development institution (as defined in section 1701(c)(3) of the International 

Financial Institutions Act (22 U.S.C. 262r(c)(3))); and 

(C) any successor, subunit, parent company or subsidiary of any entity described in subparagraph (A) or 

(B). 

(10) POWER PRODUCTION ACTIVITIES.—The term ‘‘power 

production activities’’ means any business operation that 

involves a project commissioned by the National Electricity 

Corporation of Sudan or other similar entity of the Government 

of Sudan whose purpose is to facilitate power generation and 

delivery, including establishing power-generating plants or 

hydroelectric dams, selling or installing components for the 

project, or providing service contracts related to the installation 

or maintenance of the project. 

(11) STATE.—The term ‘‘State’’ means each of the several 

States, the District of Columbia, the Commonwealth of Puerto 


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121 STAT. 2518 PUBLIC LAW 110–174—DEC. 31, 2007 

Rico, the United States Virgin Islands, Guam, American Samoa, 

and the Commonwealth of the Northern Mariana Islands. 

(12) STATE OR LOCAL GOVERNMENT.—The term ‘‘State or 

local government’’ includes— 

(A) any State and any agency or instrumentality 

thereof; 

(B) any local government within a State, and any 

agency or instrumentality thereof; 

(C) any other governmental instrumentality; and 

(D) any public institution of higher education within 

the meaning of the Higher Education Act of 1965 (20 

U.S.C. 1001 et seq.). 

SEC. 3. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST 

FROM CERTAIN COMPANIES DIRECTLY INVESTED IN CERTAIN SUDANESE SECTORS. 

(a) SENSE OF CONGRESS.—It is the sense of Congress that 

the United States Government should support the decision of any 

State or local government to divest from, or to prohibit the investment of assets of the State or local government in, a person that 

the State or local government determines poses a financial or 

reputational risk. 

(b) AUTHORITY TO DIVEST.—Notwithstanding any other provision of law, a State or local government may adopt and enforce 

measures that meet the requirements of subsection (e) to divest 

the assets of the State or local government from, or prohibit investment of the assets of the State or local government in, persons 

that the State or local government determines, using credible 

information available to the public, are conducting or have direct 

investments in business operations described in subsection (d). 

(c) NOTICE TO DEPARTMENT OF JUSTICE.—Not later than 30 

days after adopting a measure pursuant to subsection (b), a State 

or local government shall submit written notice to the Attorney 

General describing the measure. 

(d) BUSINESS OPERATIONS DESCRIBED.— 

(1) IN GENERAL.—Business operations described in this subsection are business operations in Sudan that include power 

production activities, mineral extraction activities, oil-related 

activities, or the production of military equipment. 

(2) EXCEPTIONS.—Business operations described in this subsection do not include business operations that the person 

conducting the business operations can demonstrate— 

(A) are conducted under contract directly and exclusively with the regional government of southern Sudan; 

(B) are conducted under a license from the Office of 

Foreign Assets Control, or are expressly exempted under 

Federal law from the requirement to be conducted under 

such a license; 

(C) consist of providing goods or services to 

marginalized populations of Sudan; 

(D) consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian 

organization; 

(E) consist of providing goods or services that are used 

only to promote health or education; or 

(F) have been voluntarily suspended. 

Deadline. 


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(e) REQUIREMENTS.—Any measure taken by a State or local 

government under subsection (b) shall meet the following requirements: 

(1) NOTICE.—The State or local government shall provide 

written notice and an opportunity to comment in writing to 

each person to whom a measure is to be applied. 

(2) TIMING.—The measure shall apply to a person not earlier than the date that is 90 days after the date on which 

written notice is provided to the person under paragraph (1). 

(3) APPLICABILITY.—The measure shall not apply to a person that demonstrates to the State or local government that 

the person does not conduct or have direct investments in 

business operations described in subsection (d). 

(4) SENSE OF CONGRESS ON AVOIDING ERRONEOUS TAR- GETING.—It is the sense of Congress that a State or local 

government should not adopt a measure under subsection (b) 

with respect to a person unless the State or local government 

has made every effort to avoid erroneously targeting the person 

and has verified that the person conducts or has direct investments in business operations described in subsection (d). 

(f) DEFINITIONS.—In this section: 

(1) INVESTMENT.—The ‘‘investment’’ of assets, with respect 

to a State or local government, includes— 

(A) a commitment or contribution of assets; 

(B) a loan or other extension of credit of assets; and 

(C) the entry into or renewal of a contract for goods 

or services. 

(2) ASSETS.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the term ‘‘assets’’ refers to public monies and includes 

any pension, retirement, annuity, or endowment fund, or 

similar instrument, that is controlled by a State or local 

government. 

(B) EXCEPTION.—The term ‘‘assets’’ does not include 

employee benefit plans covered by title I of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1001 

et seq.). 

(g) NONPREEMPTION.—A measure of a State or local government 

authorized under subsection (b) is not preempted by any Federal 

law or regulation. 

(h) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2), this 

section applies to measures adopted by a State or local government before, on, or after the date of the enactment of this 

Act. 

(2) NOTICE REQUIREMENTS.—Subsections (c) and (e) apply 

to measures adopted by a State or local government on or 

after the date of the enactment of this Act. 

SEC. 4. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY 

ASSET MANAGERS. 

(a) IN GENERAL.—Section 13 of the Investment Company Act 

of 1940 (15 U.S.C. 80a–13) is amended by adding at the end the 

following: 

‘‘(c) LIMITATION ON ACTIONS.— ‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

Federal or State law, no person may bring any civil, criminal, 

Applicability. 

Applicability. 

Deadline. 


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121 STAT. 2520 PUBLIC LAW 110–174—DEC. 31, 2007 

or administrative action against any registered investment company, or any employee, officer, director, or investment adviser 

thereof, based solely upon the investment company divesting 

from, or avoiding investing in, securities issued by persons 

that the investment company determines, using credible 

information that is available to the public, conduct or have 

direct investments in business operations in Sudan described 

in section 3(d) of the Sudan Accountability and Divestment 

Act of 2007. 

‘‘(2) APPLICABILITY.— ‘‘(A) ACTIONS FOR BREACHES OF FIDUCIARY DUTIES.— Paragraph (1) does not prevent a person from bringing 

an action based on a breach of a fiduciary duty owed 

to that person with respect to a divestment or non-investment decision, other than as described in paragraph (1). 

‘‘(B) DISCLOSURES.—Paragraph (1) shall not apply to 

a registered investment company, or any employee, officer, 

director, or investment adviser thereof, unless the investment company makes disclosures in accordance with regulations prescribed by the Commission. 

‘‘(3) PERSON DEFINED.—For purposes of this subsection the 

term ‘person’ includes the Federal Government and any State 

or political subdivision of a State.’’. 

(b) SEC REGULATIONS.—Not later than 120 days after the date 

of the enactment of this Act, the Securities and Exchange Commission shall prescribe regulations, in the public interest and for the 

protection of investors, to require disclosure by each registered 

investment company that divests itself of securities in accordance 

with section 13(c) of the Investment Company Act of 1940. Such 

rules shall require the disclosure to be included in the next periodic 

report filed with the Commission under section 30 of such Act 

(15 U.S.C. 80a–29) following such divestiture. 

SEC. 5. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN 

INVESTMENTS. 

It is the sense of Congress that a fiduciary of an employee 

benefit plan, as defined in section 3(3) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan 

assets from, or avoid investing plan assets in, any person the 

fiduciary determines is conducting or has direct investments in 

business operations in Sudan described in section 3(d) of this Act, 

without breaching the responsibilities, obligations, or duties 

imposed upon the fiduciary by section 404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104), if— 

(1) the fiduciary makes such determination using credible 

information that is available to the public; and 

(2) such divestment or avoidance of investment is conducted 

in accordance with section 2509.94–1 of title 29, Code of Federal 

Regulations (as in effect on the day before the date of the 

enactment of this Act). 

SEC. 6. PROHIBITION ON UNITED STATES GOVERNMENT CONTRACTS. 

(a) CERTIFICATION REQUIREMENT.—The head of each executive 

agency shall ensure that each contract entered into by such executive agency for the procurement of goods or services includes a 

clause that requires the contractor to certify to the contracting 

officer that the contractor does not conduct business operations 

in Sudan described in section 3(d). 

Deadline. 


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(b) REMEDIES.— 

(1) IN GENERAL.—The head of an executive agency may 

impose remedies as provided in this subsection if the head 

of the executive agency determines that the contractor has 

submitted a false certification under subsection (a) after the 

date the Federal Acquisition Regulation is amended under subsection (e) to implement the requirements of this section. 

(2) TERMINATION.—The head of an executive agency may 

terminate a covered contract upon the determination of a false 

certification under paragraph (1). 

(3) SUSPENSION AND DEBARMENT.—The head of an executive 

agency may debar or suspend a contractor from eligibility for 

Federal contracts upon the determination of a false certification 

under paragraph (1). The debarment period may not exceed 

3 years. 

(4) INCLUSION ON LIST OF PARTIES EXCLUDED FROM FEDERAL

PROCUREMENT AND NONPROCUREMENT PROGRAMS.—The 

Administrator of General Services shall include on the List 

of Parties Excluded from Federal Procurement and Nonprocurement Programs maintained by the Administrator under part 

9 of the Federal Acquisition Regulation issued under section 

25 of the Office of Federal Procurement Policy Act (41 U.S.C. 

421) each contractor that is debarred, suspended, proposed 

for debarment or suspension, or declared ineligible by the head 

of an executive agency on the basis of a determination of 

a false certification under paragraph (1). 

(5) RULE OF CONSTRUCTION.—This section shall not be construed to limit the use of other remedies available to the 

head of an executive agency or any other official of the Federal 

Government on the basis of a determination of a false certification under paragraph (1). 

(c) WAIVER.— 

(1) IN GENERAL.—The President may waive the requirement 

of subsection (a) on a case-by-case basis if the President determines and certifies in writing to the appropriate congressional 

committees that it is in the national interest to do so. 

(2) REPORTING REQUIREMENT.—Not later than April 15, 

2008, and semi-annually thereafter, the Administrator for Federal Procurement Policy shall submit to the appropriate 

congressional committees a report on waivers granted under 

paragraph (1). 

(d) IMPLEMENTATION THROUGH THE FEDERAL ACQUISITION

REGULATION.—Not later than 120 days after the date of the enactment of this Act, the Federal Acquisition Regulatory Council shall 

amend the Federal Acquisition Regulation issued pursuant to section 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 

421) to provide for the implementation of the requirements of this 

section. 

(e) REPORT.—Not later than one year after the date the Federal 

Acquisition Regulation is amended under subsection (e) to implement the requirements of this section, the Administrator of General 

Services, with the assistance of other executive agencies, shall 

submit to the Office of Management and Budget and the appropriate 

congressional committees a report on the actions taken under this 

section. 

Deadline. 

Certification. 


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121 STAT. 2522 PUBLIC LAW 110–174—DEC. 31, 2007 

SEC. 7. SENSE OF CONGRESS ON EFFORTS BY OTHER COUNTRIES. 

It is the sense of Congress that the governments of all other 

countries should adopt measures, similar to those contained in 

this Act, to publicize the activities of all persons that, through 

their financial dealings, knowingly or unknowingly enable the 

Government of Sudan to continue to oppress and commit genocide 

against people in the Darfur region and other regions of Sudan, 

and to authorize divestment from, and the avoidance of further 

investment in, such persons. 

SEC. 8. SENSE OF CONGRESS ON PEACEKEEPING EFFORTS IN SUDAN. 

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 

to Sudan; 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 in Sudan. 

SEC. 9. SENSE OF CONGRESS ON THE INTERNATIONAL OBLIGATIONS 

OF THE UNITED STATES. 

It is the sense of Congress that nothing in this Act— 

(1) conflicts with the international obligations or commitments of the United States; or 

(2) affects article VI, clause 2, of the Constitution of the 

United States. 

SEC. 10. REPORTS ON SANCTIONS IN SUPPORT OF PEACE IN DARFUR. 

(a) IN GENERAL.—The Secretary of State and the Secretary 

of the Treasury shall submit to the appropriate congressional 

committees a report assessing the effectiveness of sanctions imposed 

with respect to Sudan at the time the Secretary of State and 

the Secretary of the Treasury submits reports required under— 

(1) the Sudan Peace Act (Public Law 107–245; 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); and 

(3) the Darfur Peace and Accountability Act of 2006 (Public 

Law 109–344; 50 U.S.C. 1701 note). 

(b) ADDITIONAL REPORT BY THE SECRETARY OF THE TREASURY.— 

The Secretary of the Treasury shall submit to the appropriate 

congressional committees a report assessing the effectiveness of 

sanctions imposed with respect to Sudan under the International 

Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) at the 

time the President submits the reports required by section 204(c) 

of such Act (50 U.S.C. 1703(c)) with respect to Executive Order 

13,067 (50 U.S.C. 1701 note; relating to blocking property of persons 

in connection with the conflict in Sudan’s region of Darfur). 

(c) CONTENTS.—The reports required by subsections (a) and 

(b) shall include— 

(1) a description of each sanction imposed under a law 

or executive order described in subsection (a) or (b); 


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PUBLIC LAW 110–174—DEC. 31, 2007 121 STAT. 2523 

LEGISLATIVE HISTORY—S. 2271: 

SENATE REPORTS: No. 110–213 (Comm. on Banking, Housing, and Urban Affairs). 

CONGRESSIONAL RECORD, Vol. 153 (2007): 

Dec. 12, considered and passed Senate. 

Dec. 18, considered and passed House. 

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 43 (2007): 

Dec. 31, Presidential statement. 

Æ 

(2) the name of the person subject to the sanction, if any; 

and 

(3) whether or not the person subject to the sanction is 

also subject to sanctions imposed by the United Nations. 

SEC. 11. REPEAL OF REPORTING REQUIREMENT. 

Section 6305 of the U.S. Troop Readiness, Veterans’ Care, 

Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 

(Public Law 110–28; 121 Stat. 172) is repealed. 

SEC. 12. TERMINATION. 

The provisions of sections 3, 4, 5, 6, and 10 shall terminate 

30 days after the date on which the President has certified to 

Congress that the Government of Sudan has honored its commitments to— 

(1) abide by United Nations Security Council Resolution 

1769 (2007); 

(2) cease attacks on civilians; 

(3) demobilize and demilitarize the Janjaweed and associated militias; 

(4) grant free and unfettered access for delivery of humanitarian assistance; and 

(5) allow for the safe and voluntary return of refugees 

and internally displaced persons. 

Approved December 31, 2007. 

President. 

Certification. 


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