HF 3822

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; prohibiting state investment in companies with
equity ties to Sudan; requiring a report; proposing coding for new law in
Minnesota Statutes, chapter 11A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [11A.242] INVESTMENT IN SUDAN.
new text end

new text begin Subdivision 1. new text end

new text begin Findings. new text end

new text begin The legislature finds and declares that:
new text end

new text begin (1) the state of Minnesota is deeply concerned over the poor human rights situation
in Sudan, calls for stepped-up international efforts to end the crisis in Sudan's Darfur
region, and concurs with United States policy which has officially declared that genocide
is ongoing in the Sudan;
new text end

new text begin (2) despite significant pressure from the United States government, the government
of Sudan has not taken all the necessary actions to disassociate itself fully from its ties to
terrorism;
new text end

new text begin (3) the government of Sudan places severe limitations on the political and religious
freedoms of the Sudanese people despite promises of improvement and pledges to
end the 20-year civil war between the government and the Sudan People's Liberation
Movement/Army;
new text end

new text begin (4) the government of Sudan violates the rules of war by deliberately attacking
civilians and, since 1983, the war and famine-related effects have led to more than
2,000,000 deaths and over 4,000,000 people displaced;
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new text begin (5) the government of Sudan continues to engage in arbitrary arrest, prolonged
detention, extrajudicial killings, torture and rape of the Sudanese people, and apostasy
from Islam is punishable by death;
new text end

new text begin (6) severe restrictions are placed on the freedoms of assembly, association,
movement, and speech and the government actively censors the press;
new text end

new text begin (7) the most sobering violation of human rights in Sudan is the existence of slavery
or slavery-like indenture and the progovernment militia continues to engage in abduction
and slavery with impunity;
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new text begin (8) the 2002 Machakos Protocol, signed by both sides in the civil war in Sudan, has
recognized that "Sudan is a multicultural, multiracial, multi-ethnic, multi-religious, and
multi-lingual country," and that there "shall be freedom of belief, worship and conscience
for followers of all religions or beliefs or customs and no one shall be discriminated
against on such grounds" once a peace agreement is signed; and
new text end

new text begin (9) it is in the best interest of this state that a statutory prohibition be enacted to
prohibit the investment of public employee retirement funds in foreign companies doing
business in Sudan given the poor human rights situation in Sudan and the lack of signs of
improvement.
new text end

new text begin Subd. 2. new text end

new text begin Investment in company with equity ties to Sudan; prohibited.
new text end

new text begin Notwithstanding any law to the contrary, no assets under the jurisdiction of the State
Board of Investment shall be invested in any foreign company with an equity tie to
the government of Sudan or its instrumentalities and is engaged in business in or
with the same. The provisions of this section shall not apply to the activities of any
foreign company providing humanitarian aid to the Sudanese people through either a
governmental or nongovernmental organization.
new text end

new text begin As used in this section, "equity tie" means manufacturing or mining plants,
employees or advisors, facilities or an investment, fiduciary, monetary or physical
presence of any kind; and "humanitarian aid" means the provision of goods and services
intended to relieve human suffering or to promote the general welfare, health, and
religious and spiritual activities.
new text end

new text begin Subd. 3. new text end

new text begin Withdrawal from certain investments. new text end

new text begin The State Board of Investment
shall, after reviewing the recommendations of, and consulting with, an independent
research firm that specializes in global security risk for portfolio determinations, take
appropriate action to sell, redeem, divest, or withdraw any investment held in violation of
the provisions of this section. This section does not require the premature or otherwise
imprudent sale, redemption, divestment, or withdrawal of an investment, but such sale,
redemption, divestment, or withdrawal shall be completed not later than three years
following the effective date of this section.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin Within 60 days after the effective date of this section, the State
Board of Investment shall file with the legislature a report of all investments held as of
the effective date of this section which are in violation of the provisions of this section.
Every year thereafter, the State Board of Investment shall report on all investments sold,
redeemed, divested, or withdrawn in compliance with this section.
new text end

new text begin Each report after the initial report shall provide a description of the progress which
the division has made since the previous report and since the implementation of this
section.
new text end