S. 2271Senate110th Congress (2007-2009)Enacted

Sudan Accountability and Divestment Act of 2007

Introduced October 31, 2007

Legislative Activity

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19 earlier actions
Became Law Latest Action

Became Public Law No: 110-174.

December 31, 2007

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SenateIntro Referral

Introduced in Senate

October 31, 2007

SenateCommittee

Committee on Banking, Housing, and Urban Affairs. Original measure reported to Senate by Senator Dodd. With written report No. 110-213.

October 31, 2007

SenateCalendars

Placed on Senate Legislative Calendar under General Orders. Calendar No. 458.

October 31, 2007

SenateFloor

Measure laid before Senate by unanimous consent. (consideration: CR S15373-15377)

December 12, 2007

SenateFloor

Passed Senate with amendments by Unanimous Consent. (text: CR S15375-15377)

December 12, 2007

HouseFloor

Received in the House.

December 13, 2007 • 10:03 AM

SenateFloor

Message on Senate action sent to the House.

December 13, 2007

HouseIntro Referral

Referred to the Committee on Financial Services, and in addition to the Committees on Oversight and Government Reform, Foreign Affairs, and Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

December 13, 2007

HouseFloor

Mr. Frank (MA) moved to suspend the rules and pass the bill.

December 18, 2007 • 1:47 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H16753-16760)

December 18, 2007 • 1:47 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on S. 2271.

December 18, 2007 • 1:47 PM

HouseFloor

At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.

December 18, 2007 • 2:30 PM

HouseFloor

Considered as unfinished business. (consideration: CR H16767-16768)

December 18, 2007 • 3:43 PM

SenateFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 411 - 0 (Roll no. 1179).(text: CR H16753-16755)

December 18, 2007 • 3:49 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 411 - 0 (Roll no. 1179). (text: CR H16753-16755)

December 18, 2007 • 3:49 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

December 18, 2007 • 3:49 PM

SenateAction

Cleared for White House.

December 18, 2007

President

Presented to President.

December 21, 2007

Became Law

Signed by President.

December 31, 2007

Became Law

Became Public Law No: 110-174.

December 31, 2007

Floor Debate

24 members

What members said about S. 2271 on the floor

9 Republicans15 Democrats
John McCain
Sen. John McCainR-AZ · Jul 17, 2007

Reserving the right to object, Mr. President. Mr. President, if this were the first time that a 60-vote requirement were made, I would have some sympathy for the Senator from Illinois. I am having…

Carl Levin
Sen. Carl LevinD-MI · Jul 17, 2007

Mr. President, how much time remains? Mr. President, I yield myself 5 minutes. Mr. President, I think everybody in this body would like to leave Iraq better than we found it. That is not the current…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jul 17, 2007

I thank the Chair I will yield to the Senator for the purpose of propounding a unanimous consent request but without yielding the floor. Mr. President, responding to the Senator from Georgia, I…

Robert Menendez
Sen. Robert MenendezD-NJ · Jul 17, 2007

Madam President, I rise in strong support of the Levin- Reed amendment. That is the amendment that, unlike the Iraq Study Group, has a date certain for changing and transitioning our mission and…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Jul 17, 2007

Reserving the right to object, could we have the next Republican speaker be Senator Alexander? Mr. President, with this political stunt tonight, the Senate has reached the approximate level of the…

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Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 17, 2007

Mr. President, I ask that the Chair notify me when I have spoken for 5 minutes. Mr. President, I thank the Senator from Texas for explaining his amendment. But when I hear him describe the Levin-Reed…

Jack Reed
Sen. Jack ReedD-RI · Jul 17, 2007

Mr. President, I thank the Senator for the kind words. And one of my first reactions was a bit of confusion. He referenced General Lamb, the British officer in Baghdad, expressing chagrin at the…

Chuck Hagel
Sen. Chuck HagelR-NE · Jul 17, 2007

Mr. President, I rise this afternoon to support the Levin- Reed amendment. As we know, Iraq is the most important issue facing our country today. The core challenge in Iraq is the cycle of violence,…

Harry Reid
Sen. Harry ReidD-NV · Jul 17, 2007

Mr. President, late this morning, I sent a letter to the distinguished minority leader, Senator Mitch McConnell. I addressed the letter ``Dear Mitch,'' and I will read the letter. There are no more…

Dennis Moore
Rep. Dennis MooreD-KS-3 · Sep 7, 2007

Mr. Speaker, I rise today to express my disappointment regarding the House of Representatives' approval of S. 1927, legislation greatly expanding the Bush Administration's eavesdropping authority…

Christopher S. Bond
Sen. Christopher S. BondR-MO · Jul 17, 2007

I object. Mr. President, I would comment that in the process of working out votes, the minority leader has offered to the majority leader to schedule votes on this and other amendments at an…

Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jul 17, 2007

Mr. President, I welcome the debate on the U.S. role in Iraq, and I urge my colleagues to allow us to vote on the issue. I think each of us was elected to cast our votes and this is the most critical…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 17, 2007

Mr. President, I sat here for the last hour or so and listened to the discussion, and what one concludes is that, once again, we are locked in a debate about the future of Iraq. I think many people…

Show 11 more
Sherrod Brown
Sen. Sherrod BrownD-OH · Jul 17, 2007

I object. The informal order established was Senator Alexander, Senator Landrieu, Senator Lieberman, myself, then a Republican, and then Senator Menendez. I ask unanimous consent that be the order.…

John Cornyn
Sen. John CornynR-TX · Jul 17, 2007

Mr. President, I yield myself 10 minutes. I rise to discuss my amendment which lays out the consequences of a failed state in Iraq. As every parent of a teenager knows, one of the things you have to…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Dec 12, 2007

Mr. President, I want to speak about the Sudan Accountability and Divestment Act of 2007. This bill was approved unanimously by the Senate Banking, Housing, and Urban Affairs Committee, and I am…

John Warner
Sen. John WarnerR-VA · Jul 17, 2007

I object. I thank the Presiding Officer. Mr. President, I am given an opportunity now, which I have been looking forward to, to have a little colloquy with my long-time friend, Senator Levin, now…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jul 17, 2007

Well, I thank the Chair, and this is a historic night. The Senate will stay in session all night to debate the war in Iraq, something we should be doing. Frankly, Mr. President, we should have done…

Kay Bailey Hutchison
Sen. Kay Bailey HutchisonR-TX · Jul 17, 2007

Mr. President, I object. I objected in a timely manner. Mr. President, I know you did not hear me. I do not wish to keep the Finance Committee from meeting, except that we are being held for a very…

Barbara Boxer
Sen. Barbara BoxerD-CA · Jul 17, 2007

Mr. President, we are the greatest country in the world, and that is why I ask unanimous consent that amendment No. 2088 be withdrawn and that at 7 p.m. today the Senate vote on the Levin-Reed…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jul 17, 2007

Madam President, the war in Iraq is the greatest challenge facing our country. Unfortunately, the political debate in Washington has not been conducive to finding a solution, as political divisions…

Gary L. Ackerman
Rep. Gary L. AckermanD-NY-5 · Dec 18, 2007

Mr. Speaker, I move to suspend the rules and concur in the Senate amendment to the bill (H.R. 2761) to extend the Terrorism Insurance Program of the Department of the Treasury, and for other…

Barbara Lee
Rep. Barbara LeeD-CA-9 · Dec 18, 2007

Mr. Speaker, I rise in support of S. 2271, the Sudan Accountability and Divestment Act. First, let me thank Chairman Frank. As Chair of the Financial Services Committee, I have just got to say you…

Jim DeMint
Sen. Jim DeMintR-SC · Jul 17, 2007

Mr. President, you would never know it from our debate the last couple of weeks, but we are here to talk about the Defense authorization bill, this rather large bill that is at all of our desks. Much…

Bill Text

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One Hundred Tenth Congress of the United States of America

1st Session

Begun and held at the City of Washington on Thursday, the fourth day of January, two thousand and seven

S. 2271

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.

1.

Short title

This Act may be cited as the Sudan Accountability and Divestment Act of 2007.

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 Committee on Foreign Affairs, and the Permanent Select Committee 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, possessing, 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 Comprehensive 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 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 conflict in Sudan.

(7)

Mineral extraction activities

The term mineral extraction activities means exploring, extracting, processing, transporting, or wholesale selling or trading of elemental minerals 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, processing, exploring for, transporting, selling, or trading oil; and

(ii)

constructing, maintaining, or operating a pipeline, 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 gasoline or related consumer products in Sudan but is not involved in any other activity described in subparagraph (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 nongovernmental entity, organization, or group;

(B)

any governmental entity or instrumentality of a government, including a multilateral development institution (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 subsidiary 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 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.).

3.

Authority of State and local governments to divest from certain companies directly invested in certain 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 investment 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 provision 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 investment 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 subsection 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 subsection do not include business operations that the person conducting the business operations can demonstrate—

(A)

are conducted under contract directly and exclusively 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 internationally 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.

(e)

Requirements

Any measure taken by a State or local government under subsection (b) shall meet the following requirements:

(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 earlier 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 person 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 targeting

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 investments 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 government 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.

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, or administrative action against any registered investment company, 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-investment 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 investment company makes disclosures in accordance with regulations 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 Commission 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.

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 Retirement 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).

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 executive 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).

(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 subsection (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 Nonprocurement 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 construed 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 certification 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 determines 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 Federal 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 enactment of this Act, the Federal Acquisition Regulatory Council shall amend the Federal Acquisition Regulation issued pursuant to section 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 implement 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.

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.

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 international community, including the Permanent Members of the United Nations Security Council, the African Union, the European 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 continued refusal to allow the implementation of a peacekeeping force in Sudan.

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 commitments of the United States; or

(2)

affects article VI, clause 2, of the Constitution of the United States.

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);

(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.

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.

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 commitments to—

(1)

abide by United Nations Security Council Resolution 1769 (2007);

(2)

cease attacks on civilians;

(3)

demobilize and demilitarize the Janjaweed and associated militias;

(4)

grant free and unfettered access for delivery of humanitarian assistance; and

(5)

allow for the safe and voluntary return of refugees and internally displaced persons.

Speaker of the House of Representatives

Vice President of the United States and President of the Senate