South Africa Act of 1985

South Africa Act of 1985 - Declares that it is U.S. policy to: (1) be a positive influence in ending apartheid in South Africa; (2) oppose apartheid through diplomatic means and through the enactment and implementation of laws intended to reinforce U.S. policy with respect to apartheid; (3) promote change in South Africa through peaceful means; and (4) support an independent and impartial judicial system in South Africa and to support free trade unions in South Africa.

Title I: United States Commission on South Africa - Establishes the United States Commission on South Africa (the Commission) to study and report to the Congress on the economic and political relations between the United States and South Africa and on the progress South Africa has made in eliminating apartheid and toward the full participation of blacks and other nonwhites in the social, political, and economic life in South Africa. Requires the Commission to submit interim reports every six months for the three years following enactment of this Act. Requires the final report to be submitted three years after enactment of this Act and to contain: (1) a determination on whether South Africa has made substantial progress toward ending apartheid and toward full participation of nonwhites in South African life; and (2) if the Commission determines that substantial progress has not been made a recommendation as to which of several specified sanctions should be imposed. Sets forth administrative provisions.

Title II: Fair Employment Principles - Expresses the sense of the Congress that any person who has a branch or office in South Africa or controls a business in South Africa should implement specified principles relating to employment practices. Imposes the following sanctions on such persons if more than 20 people are employed by their branch or business in South Africa and such persons do not implement the employment principles relating to employment practices: (1) a prohibition against a U.S. agency entering into a contract with such persons, making a loan, issuing a loan guaranty or issuing insurance to such persons, providing any counseling on economic or political risks to such persons, or interceding with any foreign government or foreign national regarding the foreign investment or export marketing activities in any country of such persons; and (2) a prohibition against such person receiving any tax credit or deduction for income, war profits, or excess profits tax paid or accrued to South Africa. Sets forth the principles relating to employment practices.

Authorizes the Secretary to issue guidelines and, upon request, to give advisory opinions on compliance with this title. Sets forth provisions dealing with enforcement of this title (including requirements: (1) that the Secretary issue a list of all persons about whom determinations of States have been made; and (2) that persons required to implement the employment principles shall submit to the Secretary an annual report on compliance with such principles). Authorizes the President to waive the requirements of this title if necessary to protect U.S. national security. Requires the President to publish each waiver and to submit each waiver and its justification to the Congress. Makes this title applicable to persons who undertake or cause to be undertaken any transaction or activity with the intent to evade this title.

Title III: Additional Measures Regarding South Africa - Amends the Foreign Assistance Act of 1961 to earmark a specified amount of the funds available for human rights assistance for grants to nongovernemntal organizations in South Africa. Requires such grants to be made by the Assistant Secretary of State for Human Rights and Humanitarian Affairs.

Authorizes additional appropriations to the National Endowment for Democracy for FY 1986 and 1987 for private enterprise and free labor union development in the nonwhite communities in South Africa. Earmarks specified portions of such amounts for the Free Trade Union Institute and for the Center for International Private Enterprise.

Earmarks a specified amount of the education and human resources development assistance funds for scholarships for black South Africans who are attending universities, colleges, and secondary schools in South Africa.

Permits the Overseas Private Investment Corporation to issue investment insurance, reinsurance, and loan guaranties in connection with a project in South Africa, notwithstanding the absence of an agreement with South Africa, except that: (1) the issuance of such insurance, reinsurance, or guaranty shall only be made to promote joint ventures between businesses controlled by South African blacks or other nonwhite South Africans and businesses controlled or owned by U.S. nationals; and (2) the U.S. national holds a minority interest or agrees to relinquish its majority interest during the course of the joint venture.

Expresses the sense of the Congress that the President should consult with allied countries regarding the issues raised by the existence of apartheid in South Africa, particularly the prospect for joint effective action among the allies in the field of economic relations to bring about an end to apartheid.

Directs the Secretary of State to study and report to the Congress on the starvation and malnutrition in the "homelands" areas of South Africa.

Title IV: General Provisions - Terminates the provisions of this Act after the President submits a determination to the Congress that apartheid in South Africa has been abolished and the Congress has enacted a joint resolution approving such determination.