II 

110TH CONGRESS 

1ST SESSION S. 1563 

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. 

IN THE SENATE OF THE UNITED STATES 

JUNE 7, 2007 

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) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sudan Disclosure and 

5 Enforcement Act of 2007’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) On July 22, 2004, the Senate passed Sen2 ate Concurrent Resolution 133, 108th Congress, and 

3 the House of Representatives passed House Concur4 rent Resolution 467, 108th Congress, both resolu5 tions declaring that ‘‘the atrocities unfolding in 

6 Darfur, Sudan, are genocide’’. 

7 (2) On September 9, 2004, President Bush de8 clared that ‘‘we have concluded that genocide has 

9 taken place in Darfur’’. 

10 (3) On June 30, 2005, President Bush affirmed 

11 that ‘‘the violence in Darfur region is clearly geno12 cide [and t]he human cost is beyond calculation’’. 

13 (4) On May 8, 2006, President Bush re14 affirmed, ‘‘We will call genocide by its rightful name, 

15 and we will stand up for the innocent until the peace 

16 of Darfur is secured.’’. 

17 (5) On November 20, 2006, the Presidential 

18 Special Envoy to Sudan, Andrew S. Natsios, stated 

19 in a briefing to members of the press, ‘‘And there’s 

20 a point—January 1st is either we see a change or 

21 we go to Plan B.’’. 

22 (6) On February 20, 2007, Special Envoy 

23 Natsios stated in an interview with the Council on 

24 Foreign Relations, ‘‘We needed to send a message to 

25 the Sudanese government that we were no longer 


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1 simply going to continue with the situation the way 

2 it’s been the last four years, that there was a 

3 change. We are considering more aggressive meas4 ures should we make no progress in the humani5 tarian area, in the political negotiations, and in the 

6 implementation of Kofi Annan and Ban Ki-moon’s 

7 plan to introduce . . . additional forces.’’. 

8 (7) On April 18, 2007, President Bush stated, 

9 ‘‘It is evil we are now seeing in Sudan—and we’re 

10 not going to back down.’’. 

11 (8) The Government of Sudan, as of the date 

12 of the introduction of this Act, has announced its 

13 willingness to accept 3,000 United Nations peace14 keepers and their equipment, but has continued to 

15 obstruct the full-scale joint United Nations-African 

16 Union peacekeeping mission authorized under 

17 United Nations Security Council Resolution 1706 

18 (2006) and to prevent sufficient humanitarian access 

19 to meet the urgent needs of the people of Darfur. 

20 (9) Congress supports the objectives of a ‘‘Plan 

21 B’’ as outlined in the press and elsewhere to in22 crease pressure on the Government of Sudan to ac23 cept a greatly expanded peacekeeping mission with a 

24 mandate to protect the people of Darfur. 


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1 SEC. 3. SENSE OF CONGRESS. 

2 It is the sense of Congress that the President 

3 should— 

4 (1) continue to work with other members of the 

5 international community, including the Permanent 

6 Members of the United Nations Security Council, 

7 the African Union, the European Union, the Arab 

8 League, and the Government of Sudan to facilitate 

9 the urgent deployment of a peacekeeping force as 

10 called for by United Nations Security Council Reso11 lution 1706 (2006); and 

12 (2) bring before the United Nations Security 

13 Council, and call for a vote on, a resolution requir14 ing meaningful multilateral sanctions against the 

15 Government of Sudan in response to its acts of 

16 genocide against the people of Darfur and its contin17 ued refusal to allow the implementation of a peace18 keeping force as called for by Resolution 1706. 

19 SEC. 4. DEFINITIONS. 

20 In this Act: 

21 (1) APPROPRIATE CONGRESSIONAL COMMIT22 TEES.—The term ‘‘appropriate congressional com23 mittees’’ means— 

24 (A) the Committee on Appropriations, the 

25 Committee on Foreign Relations, and the ComVerDate Aug 31 2005 22:45 Jun 08, 2007 Jkt 059196 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1563.IS S1563

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1 mittee on Banking, Housing, and Urban Affairs 

2 of the Senate; and 

3 (B) the Committee on Appropriations, the 

4 Committee on Foreign Affairs, and the Com5 mittee on Financial Services of the House of 

6 Representatives. 

7 (2) PERSON.—The term ‘‘person’’ means an in8 dividual, partnership, corporation, or other entity, 

9 including a government or an agency of a govern10 ment. 

11 (3) SUDAN.— 

12 (A) SUDAN.—The term ‘‘Sudan’’ means 

13 the Republic of Sudan and any territory under 

14 the administration or control of the Government 

15 of Sudan. 

16 (B) SOUTHERN SUDAN AND DESIGNATED

17 AREAS.—The term ‘‘Southern Sudan and des18 ignated areas’’ means Southern Sudan, South19 ern Kordofan/Nuba Mountains State, Blue Nile 

20 State, Abyei, or Darfur. 

21 SEC. 5. DISCLOSURE TO THE SEC OF ACTIVITIES RELATING 

22 TO THE PETROLEUM INDUSTRY IN SUDAN. 

23 Section 13 of the Securities Exchange Act of 1934 

24 (15 U.S.C. 78m) is amended by adding at the end the 

25 following new subsection: 


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1 ‘‘(m) DISCLOSURE OF ACTIVITIES RELATING TO THE

2 PETROLEUM INDUSTRY IN SUDAN.— 

3 ‘‘(1) IN GENERAL.—Not later than 90 days 

4 after the date of the enactment of this subsection, 

5 the Securities and Exchange Commission shall pro6 mulgate rules requiring any person described in 

7 paragraph (2) to disclose to the Securities and Ex8 change Commission— 

9 ‘‘(A) activities described in paragraph (3) 

10 if such activities result in gross receipts to or 

11 total investments from such person of 

12 $1,000,000 or more a year; and 

13 ‘‘(B) the geographic area within Sudan 

14 where such activities occurred, and specifically 

15 if such activities took place solely within South16 ern Sudan and designated areas. 

17 ‘‘(2) PERSON DESCRIBED.—A person, as de18 fined in paragraph (6)(C), is described in this para19 graph if the person— 

20 ‘‘(A) is an issuer of securities registered 

21 under section 12; and 

22 ‘‘(B) either— 

23 ‘‘(i) engages in or facilitates activities 

24 described in paragraph (3); or 


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1 ‘‘(ii) controls or is controlled by a per2 son that engages in or facilitates activities 

3 described in paragraph (3). 

4 ‘‘(3) ACTIVITIES DESCRIBED.—An activity de5 scribed in this paragraph is the exploration, develop6 ment, extraction, processing, exportation, or sale of 

7 petroleum products produced in Sudan. 

8 ‘‘(4) WAIVER.—The President may waive the 

9 disclosure requirements described in paragraph (1) 

10 for periods not to exceed 1 year if the President— 

11 ‘‘(A) determines that such a waiver is in 

12 the national interest of the United States; and 

13 ‘‘(B) not later than 7 days before granting 

14 the waiver, reports to the appropriate congres15 sional committees regarding the intention of the 

16 President to waive the disclosure requirements 

17 described in paragraph (1) and the reasons the 

18 waiver is in the national interest of the United 

19 States. 

20 ‘‘(5) TERMINATION OF DISCLOSURE REQUIRE21 MENTS.—The disclosure requirements described in 

22 paragraph (1) shall terminate if the Secretary of 

23 State— 


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1 ‘‘(A) determines that the Government of 

2 Sudan no longer provides support for acts of 

3 international terrorism for purposes of— 

4 ‘‘(i) section 40 of the Arms Export 

5 Control Act (22 U.S.C. 2780); 

6 ‘‘(ii) section 620A of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2371); 

8 and 

9 ‘‘(iii) section 6(j) of the Export Ad10 ministration Act of 1979 (50 U.S.C. App. 

11 2405(j)), as in effect pursuant to the 

12 International Emergency Economic Powers 

13 Act (50 U.S.C. 1701 et seq.); and 

14 ‘‘(B) certifies to the appropriate congres15 sional committees that the Government of 

16 Sudan has demonstrated significant improve17 ment in protecting the civilian population of 

18 Darfur, such as by allowing a substantial 

19 United Nations-African Union peacekeeping 

20 mission with the mandate and means to protect 

21 civilians and allow for the safe return of per22 sons displaced by the violence in Darfur. 

23 ‘‘(6) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) APPROPRIATE CONGRESSIONAL COM2 MITTEES.—The term ‘appropriate congressional 

3 committees’ means— 

4 ‘‘(i) the Committee on Appropriations, 

5 the Committee on Foreign Relations, and 

6 the Committee on Banking, Housing, and 

7 Urban Affairs of the Senate; and 

8 ‘‘(ii) the Committee on Appropria9 tions, the Committee on Foreign Affairs, 

10 and the Committee on Financial Services 

11 of the House of Representatives. 

12 ‘‘(B) CONTROL.—The term ‘control’ 

13 means— 

14 ‘‘(i) in the case of a corporation, to 

15 hold at least 50 percent (by vote or value) 

16 of the capital structure of the corporation; 

17 and 

18 ‘‘(ii) in the case of any other entity, to 

19 hold interests representing at least 50 per20 cent of the capital structure of the entity. 

21 ‘‘(C) IS CONTROLLED BY.—The term ‘is 

22 controlled by’ means— 

23 ‘‘(i) in the case of a corporation, to 

24 have at least 50 percent (by vote or value) 


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1 of the capital structure of the corporation 

2 held by another person; and 

3 ‘‘(ii) in the case of any other entity, to 

4 have interests representing at least 50 per5 cent of the capital structure of the entity 

6 held by another person. 

7 ‘‘(D) FOREIGN PERSON.—The term ‘for8 eign person’ means a person— 

9 ‘‘(i) in the case of an individual, who 

10 is an alien; or 

11 ‘‘(ii) in the case of a partnership, cor12 poration, or other entity, that is organized 

13 under the laws of a foreign country or that 

14 has its principal place of business in a for15 eign country. 

16 ‘‘(E) PERSON.— 

17 ‘‘(i) IN GENERAL.—The term ‘person’ 

18 means an individual, partnership, corpora19 tion, or other entity, including a govern20 ment or an agency of a government. 

21 ‘‘(ii) EXCEPTION.—The term ‘person’ 

22 does not include— 

23 ‘‘(I) any person engaging solely 

24 in transactions or activities in Sudan 

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1 suant to the Sudanese Sanctions Reg2 ulations (part 538 of title 31, Code of 

3 Federal Regulations); 

4 ‘‘(II) foreign nongovernmental 

5 organizations (except agencies of the 

6 Government of Sudan) that— 

7 ‘‘(aa) have consultative sta8 tus with the United Nations Eco9 nomic and Social Council; or 

10 ‘‘(bb) have been accredited 

11 by a department or specialized 

12 agency of the United Nations; or 

13 ‘‘(III) a foreign person whose 

14 business activities in Sudan are strict15 ly limited to providing goods and serv16 ices that are— 

17 ‘‘(aa) intended to relieve 

18 human suffering; 

19 ‘‘(bb) intended to promote 

20 welfare, health, religious, or spir21 itual activities; 

22 ‘‘(cc) used for educational or 

23 humanitarian purposes; 

24 ‘‘(dd) used for journalistic 

25 activities; or 


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1 ‘‘(ee) used for such other 

2 purposes as the Secretary of 

3 State may determine serve the 

4 foreign policy interests of the 

5 United States. 

6 ‘‘(F) SUDAN.— 

7 ‘‘(i) SUDAN.—The term ‘Sudan’ 

8 means the Republic of Sudan and any ter9 ritory under the administration or control 

10 of the Government of Sudan. 

11 ‘‘(ii) SOUTHERN SUDAN AND DES12 IGNATED AREAS.—The term ‘Southern 

13 Sudan and designated areas’ means South14 ern Sudan, Southern Kordofan/Nuba 

15 Mountains State, Blue Nile State, Abyei, 

16 or Darfur.’’. 

17 SEC. 6. INCREASED PENALTIES FOR VIOLATIONS OF IEEPA. 

18 (a) IN GENERAL.—Section 206 of the International 

19 Emergency Economic Powers Act (50 U.S.C. 1705) is 

20 amended to read as follows: 

21 ‘‘SEC. 206. PENALTIES. 

22 ‘‘(a) UNLAWFUL ACTS.—It shall be unlawful for a 

23 person to violate, attempt to violate, conspire to violate, 

24 or cause a violation of any license, order, regulation, or 

25 prohibition issued under this title. 


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1 ‘‘(b) CIVIL PENALTY.—A civil penalty may be im2 posed on any person who commits an unlawful act de3 scribed in subsection (a) in an amount not to exceed the 

4 greater of— 

5 ‘‘(1) $250,000; or 

6 ‘‘(2) an amount that is twice the amount of the 

7 transaction that is the basis of the violation with re8 spect to which the penalty is imposed. 

9 ‘‘(c) CRIMINAL PENALTY.—A person who willfully 

10 commits, willfully attempts to commit, or willfully con11 spires to commit, or aids or abets in the commission of, 

12 an unlawful act described in subsection (a) shall, upon 

13 conviction, be fined not more than $1,000,000, or if a nat14 ural person, may be imprisoned for not more than 20 

15 years, or both.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) applies to violations described in section 

18 206 of the International Emergency Economic Powers Act 

19 (50 U.S.C. 1705) with respect to which enforcement ac20 tion is pending or commenced on or after the date of the 

21 enactment of this Act. 


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1 SEC. 7. REPORT ON AND PUBLIC DISCLOSURE OF ACTIVI2 TIES IN THE PETROLEUM INDUSTRY OF 

3 SUDAN. 

4 (a) REPORT ON ACTIVITIES RELATING TO THE PE5 TROLEUM INDUSTRY OF SUDAN.— 

6 (1) IN GENERAL.—Not later than 90 days after 

7 the date of the enactment of this Act, the Secretary 

8 of the Treasury, in consultation with the Secretary 

9 of State, the Secretary of Energy, and the Director 

10 of National Intelligence, shall prepare and submit to 

11 the appropriate congressional committees a written 

12 report on the overall impact of economic sanctions 

13 on the Government of Sudan and the crisis in 

14 Darfur. 

15 (2) CONTENTS OF REPORT.—The report re16 quired by paragraph (1) shall include— 

17 (A) the name of persons identified by the 

18 Office of Foreign Assets Control as specially 

19 designated nationals; and 

20 (B) the economic and political impact of 

21 sanctions on the Government of Sudan. 

22 (3) FORM OF REPORT.—The report shall be 

23 submitted in unclassified form, but may contain a 

24 classified annex relating to the assessment under 

25 paragraph (2)(B). 


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1 (b) BRIEFING ON REPORT.—Not later than 14 days 

2 after submitting the report required by subsection (a), the 

3 Secretary of the Treasury, the Secretary of State, the Sec4 retary of Energy, the Director of National Intelligence, 

5 and representatives of the Securities and Exchange Com6 mission shall brief the appropriate congressional commit7 tees on the contents of the report. 

8 (c) DISCLOSURE ON SEC WEBSITE.— 

9 (1) IN GENERAL.—Not later than 14 days after 

10 promulgating the rules required by section 13(m) of 

11 the Securities Exchange Act of 1934, as added by 

12 section 5, the Securities and Exchange Commission 

13 shall make available on its website, in an easily ac14 cessible and searchable format, the information col15 lected pursuant to the disclosure requirements of 

16 such section 13(m), including— 

17 (A) the names of persons that made disclo18 sures under such section 13(m); 

19 (B) the specific activities related to the pe20 troleum industry of Sudan in which such per21 sons engaged; and 

22 (C) the geographic area within Sudan 

23 where such activities occurred, and specifically 

24 if such activities took place solely within South25 ern Sudan and designated areas. 


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1 (2) MAINTENANCE.—The Securities and Ex2 change Commission shall maintain and update regu3 larly the information on the website of the Commis4 sion under paragraph (1). 

5 (d) GOVERNMENT PROCUREMENT CONTRACTS.— 

6 (1) IN GENERAL.—Not later than 45 days after 

7 the submission of the report required by subsection 

8 (a), the Administrator of General Services shall de9 termine whether the United States Government has 

10 in effect a contract for the procurement of goods or 

11 services with any person identified in the report re12 quired by subsection (a). 

13 (2) REPORT.—If the Administrator determines 

14 that the United States Government has in effect a 

15 contract for the procurement of goods or services 

16 with a person identified in the report required by 

17 subsection (a), the Administrator shall submit to the 

18 appropriate congressional committees a report— 

19 (A) naming each person identified in the 

20 report required by subsection (a); 

21 (B) the nature of the contract; and 

22 (C) the dollar amount of the contract. 


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1 SEC. 8. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS 

2 FOR OFAC. 

3 (a) IN GENERAL.—There are authorized to be appro4 priated $2,000,000 to the Office of Foreign Assets Control 

5 for fiscal year 2008, to support intelligence gathering, li6 censing, compliance, and administrative activities associ7 ated with the enforcement of sanctions against Sudan and 

8 persons operating in Sudan. 

9 (b) SUPPLEMENT NOT SUPPLANT.—Funds appro10 priated pursuant to the authority of subsection (a) shall 

11 be used to supplement and not supplant other amounts 

12 authorized to be appropriated for the Office of Foreign 

13 Assets Control. 

14 SEC. 9. NOTIFICATION OF TERMINATION OF SANCTIONS. 

15 (a) IN GENERAL.—Not later than 15 days after the 

16 date on which any sanction described in subsection (b) is 

17 terminated, the President shall publish in the Federal 

18 Register notice that such sanction has been terminated. 

19 (b) SANCTIONS DESCRIBED.—A sanction described 

20 in this subsection is a sanction imposed pursuant to— 

21 (1) the Darfur Peace and Accountability Act of 

22 2006 (Public Law 109–344; 50 U.S.C. 1701 note); 

23 (2) the Comprehensive Peace in Sudan Act of 

24 2004 (Public Law 108–497; 50 U.S.C. 1701 note); 

25 (3) the Sudan Peace Act (Public Law 107–245; 

26 50 U.S.C. 1701 note); 


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1 (4) the International Emergency Economic 

2 Powers Act (50 U.S.C. 1701 et seq.); 

3 (5) chapter 5 of title 31, Code of Federal Regu4 lations; or 

5 (6) any other provision of law, regulation, or 

6 executive order relating to Sudan. 

7 SEC. 10. REPEAL. 

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

9 Care, Katrina Recovery, and Iraq Accountability Appro10 priations Act, 2007 (Public Law 110–28) is repealed. 

Æ 


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