Sec. 3-21e. Divestment of state funds invested in companies doing business in Sudan.
Sec. 3-21e. Divestment of state funds invested in companies doing business in
Sudan. (a) For the purposes of this section and subsection (a) of section 3-37:
(1) "Company" means any corporation, utility, partnership, joint venture, franchisor, franchisee, trust, entity investment vehicle, financial institution or any wholly-owned subsidiary of such corporation;
(2) "Doing business" means maintaining equipment, facilities, personnel or other
apparatus of business or commerce in Sudan, including, but not limited to, ownership
of real or personal property in Sudan, or engaging in any business activity with the
government of Sudan;
(3) "Invest" means the commitment of funds or other assets to a company, including,
but not limited to, the ownership or control of a share or interest in the company, and
the ownership or control of a bond or other debt instrument by the company; and
(4) "Sudan" means the Republic of Sudan, including its government, and any of its
agencies, instrumentalities or political subdivisions.
(b) The State Treasurer shall review the major investment holdings of the state for
the purpose of determining the extent to which state funds are invested in companies
doing business in Sudan. Whenever feasible and consistent with the fiduciary duties of
the Treasurer, the Treasurer shall encourage companies in which state funds are invested
and that are doing business in Sudan, as identified by the United States Department of
Treasury's Office of Foreign Assets Control or the Treasurer, to act responsibly and not
take actions that promote or otherwise enable human rights violations in Sudan.
(c) The State Treasurer (1) may divest, decide to not further invest state funds or
not enter into any future investment in any company doing business in Sudan, and (2)
shall divest and not further invest in any security or instrument issued by Sudan. In
determining whether to divest state funds in accordance with the provisions of subdivision (1) of this subsection, the factors which the Treasurer shall consider shall include,
but not be limited to, the following: (A) Revenues paid by such company directly to the
government of Sudan, (B) whether such company supplies infrastructure or resources
used by the government of Sudan to implement its policies of genocide in Darfur or
other regions of Sudan, (C) whether such company knowingly obstructs lawful inquiries
into its operations and investments in Sudan, (D) whether such company attempts to
circumvent any applicable sanctions of the United States, (E) the extent of any humanitarian activities undertaken by such company in Sudan, (F) whether such company is
engaged solely in the provision of goods and services intended to relieve human suffering, or to promote welfare, health, education, religious or spiritual activities, (G) whether
such company is authorized by the federal government of the United States to do business
in Sudan, (H) evidence that such company has engaged the government of Sudan to
cease its abuses in Darfur or other regions in Sudan, (I) whether such company is engaged
solely in journalistic activities, and (J) any other factor that the Treasurer deems prudent.
In the event that the Treasurer determines that divestment of state funds is warranted
from a company in which state funds are invested due to such company doing business
in Sudan, the Treasurer shall give notice to such company that such funds shall be
divested from such company for as long as such company does business in Sudan.
(d) The State Treasurer shall, at least once per fiscal year, provide reports to the
Investment Advisory Council on actions taken by the Treasurer pursuant to the provisions of this section.
(e) In the event that the President of the United States rescinds or repeals Executive
Order 13067 the provisions of this section shall no longer be effective.
(P.A. 06-51, S. 1, 2.)
History: P.A. 06-51 effective May 8, 2006.
See Secs. 3-13g and 3-13h re investments in corporations doing business in Iran and Northern Ireland, respectively.