Sudan Genocide Divestment Act
Summary: The Sudan Genocide Divestment Act requires the [Treasurer] to divest state pension and annuity funds from investments in companies doing business with the government of Sudan.
SECTION 1. SHORT TITLE
This Act shall be called the “Sudan Genocide Divestment Act.”
SECTION 2. FINDINGS AND PURPOSE
(A) FINDINGS—The legislature finds that:
1. The government of Sudan has engaged in a policy of genocide against its own non-Arab population in Darfur through use of its military and through sponsorship of attacks by armed Arab militias known as the janjaweed.
2. The janjaweed and military of the Sudanese government are responsible for razing 90 percent of Darfur’s villages, gang-raping civilians, slaughtering as many as 450,000 victims, displacing two million more, using forced starvation as a weapon of war, and impeding access of humanitarian aid.
3. The Sudanese government and janjaweed militias have continued their attacks despite the Darfur Peace Agreement brokered, in part, by the United States in May of 2006.
4. International companies operating in Sudan bring significant revenue, cover and arms to the Sudanese government while providing little benefit to the majority of Sudan’s citizens.
5. Responding to the genocide, nearly 100 universities, cities, states, and private pension plans have divested from companies that do business with the Sudanese government.
6. Investment in companies intimately linked to genocide is not only immoral, it presents a material risk for investors.
(B) PURPOSE—This law is enacted to prevent the state from giving indirect financial support to genocide and to protect the state from undue risk as an investor.
SECTION 3. DIVESTMENT FROM SUDAN
(A) DEFINITION—In this section, “Government of Sudan” does not include the government of South Sudan.
(B) RULES OF DIVESTMENT
1. The assets of a pension or annuity fund under the jurisdiction of the [State Treasurer] shall not be invested in the stocks, securities or other obligations of a company which directly or through a subsidiary is engaged in business in the nation of or with the government of Sudan or its instrumentalities. This prohibition shall not apply to any company whose primary activity in Sudan is to provide products or services clearly intended for the social development of those outside the government of Sudan or its instrumentalities, including the provision of medicine or medical equipment, agricultural supplies or agricultural infrastructure, educational opportunities, journalism-related activities, or spiritual-related activities.
2. The [Treasurer] shall take appropriate action to sell, redeem, divest or withdraw any investment held in violation of paragraph 1. However, paragraph 1 shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment or withdrawal of an investment, but such sale, redemption, divestment or withdrawal shall be completed within the following guidelines:
a. At least 30 percent of the retirement system’s assets in such companies shall be divested within four months after the effective date of this Act.
b. At least 60 percent of the retirement system’s assets in such companies shall be divested within eight months after the effective date of this Act.
c. One hundred percent of the retirement system’s assets in such companies shall be divested within 12 months after the effective date of this Act.
3. Within 60 days of the effective date of this Act, the [Treasurer] shall report to the legislature a list of all investments held as of the effective date of this Act which are in violation paragraph 1. Annually thereafter, the treasurer shall report on all investments sold, redeemed, divested or withdrawn in compliance with this section.
4. If it is determined by the [Treasurer] that a company, which had previously been considered to have been engaged in business directly or through a subsidiary in or with Sudan or its instrumentalities, has ceased business operations with Sudan or its instrumentalities, then the divestiture requirements shall no longer apply to that company.
5. Nothing in this act shall alter or diminish existing fiduciary or statutory obligations and other terms, conditions, and limitations on the investment of retirement system assets for the exclusive interest and benefit of participants and beneficiaries of a retirement system.
(C) EXPIRATION OF DIVESTMENT—In the event that the government of Sudan halts the genocide in Darfur for at least 12 months and the United States federal government revokes all sanctions imposed against Sudan, the provisions of this Act shall expire.
SECTION 4. EFFECTIVE DATE
This Act shall take effect on July 1, 2007.