Sudan Accountability and Divestment Act of 2007
PL 110-174 (S.2271), enacted 12/31/2007

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 Divest-
ment 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 Com-
mittee on Foreign Affairs, and the Permanent Select Com-
mittee 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, pos-
sessing, 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 Com-
prehensive 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] 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01224
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
121 STAT. 2517 
PUBLIC LAW 110–174—DEC. 31, 2007 
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 con-
flict in Sudan. 
(7) MINERAL EXTRACTION ACTIVITIES.—The term ‘‘mineral 
extraction activities’’ means exploring, extracting, processing, 
transporting, or wholesale selling or trading of elemental min-
erals 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, proc-
essing, exploring for, transporting, selling, or trading 
oil; and 
(ii) constructing, maintaining, or operating a pipe-
line, 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 gaso-
line or related consumer products in Sudan but is 
not involved in any other activity described in subpara-
graph (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 non-
governmental entity, organization, or group; 
(B) any governmental entity or instrumentality of a 
government, including a multilateral development institu-
tion (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 sub-
sidiary 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 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01225
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
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 CER-
TAIN 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 invest-
ment 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 provi-
sion 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 invest-
ment 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 sub-
section 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 sub-
section do not include business operations that the person 
conducting the business operations can demonstrate— 
(A) are conducted under contract directly and exclu-
sively 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 inter-
nationally 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. 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01226
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
121 STAT. 2519 
PUBLIC LAW 110–174—DEC. 31, 2007 
(e) REQUIREMENTS.—Any measure taken by a State or local 
government under subsection (b) shall meet the following require-
ments: 
(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 ear-
lier 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 per-
son 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 invest-
ments 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 govern-
ment 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. 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01227
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
121 STAT. 2520 
PUBLIC LAW 110–174—DEC. 31, 2007 
or administrative action against any registered investment com-
pany, 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-invest-
ment 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 invest-
ment company makes disclosures in accordance with regu-
lations 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 Commis-
sion 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 Retire-
ment 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 execu-
tive 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. 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01228
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
121 STAT. 2521 
PUBLIC LAW 110–174—DEC. 31, 2007 
(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 sub-
section (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 Nonprocure-
ment 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 con-
strued 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 certifi-
cation 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 deter-
mines 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 Fed-
eral 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 enact-
ment of this Act, the Federal Acquisition Regulatory Council shall 
amend the Federal Acquisition Regulation issued pursuant to sec-
tion 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 imple-
ment 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. 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01229
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
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 inter-
national community, including the Permanent Members of the 
United Nations Security Council, the African Union, the Euro-
pean 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 contin-
ued 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 commit-
ments 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); 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01230
Fmt 6580
Sfmt 6581
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW
121 STAT. 2523 
PUBLIC LAW 110–174—DEC. 31, 2007 
LEGISLATIVE HISTORY—S. 2271: 
SENATE REPORTS: No. 110–213 (Comm. on Banking, Housing, and Urban Af-
fairs). 
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. 
(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 commit-
ments to— 
(1) abide by United Nations Security Council Resolution 
1769 (2007); 
(2) cease attacks on civilians; 
(3) demobilize and demilitarize the Janjaweed and associ-
ated militias; 
(4) grant free and unfettered access for delivery of humani-
tarian assistance; and 
(5) allow for the safe and voluntary return of refugees 
and internally displaced persons. 
Approved December 31, 2007. 
President. 
Certification. 
VerDate Aug 31 2005 
07:12 Jan 26, 2009
Jkt 059194
PO 00002
Frm 01231
Fmt 6580
Sfmt 6580
M:\STATUTES\2007\59194PT2.001
APPS10
PsN: 59194PT2
dkrause on GSDDPC44 with PUBLAW