[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2134 Reported in Senate (RS)]






                                                       Calendar No. 451
107th CONGRESS
  2d Session
                                S. 2134

   To allow American victims of state sponsored terrorism to receive 
           compensation from blocked assets of those states.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 16, 2002

  Mr. Harkin (for himself, Mr. Allen, Mr. Smith of New Hampshire, Mr. 
   Schumer, Mr. Nickles, Mrs. Clinton, Mr. Warner, Ms. Mikulski, Mr. 
Burns, Mr. Craig, Mrs. Feinstein, Ms. Collins, Mr. Cleland, Mr. Baucus, 
 Mr. Miller, Mr. Bayh, Mr. Hollings, Mr. Johnson, Mr. Torricelli, Mrs. 
 Hutchison, and Mr. Santorum) introduced the following bill; which was 
       read twice and referred to the Committee on the Judiciary

                             June 27, 2002

                Reported by Mr. Leahy, with an amendment

_______________________________________________________________________

                                 A BILL


 
   To allow American victims of state sponsored terrorism to receive 
           compensation from blocked assets of those states.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Terrorism Victim's Access to 
Compensation Act of 2002''.

SEC. 2. FINDINGS.

    Congress finds that:
            (1) The war against international terrorism must be fought 
        and won on multiple fronts.
            (2) The state sponsors of international terrorism 
        (including their agencies and instrumentalities) are ultimately 
        responsible for the damages, pain, and suffering inflicted upon 
        Americans who are victimized by terrorist acts. It is the state 
        sponsors, not the American taxpayer, who must be compelled to 
        pay those costs.
            (3) The Secretary of the Treasury lawfully controls 
        billions of dollars in blocked assets of several governments 
        which the President and the Department of State have determined 
        to be state sponsors of international terrorism and responsible 
        for multiple terrorist attacks on United States citizens 
        abroad.
            (4) There have been multiple Federal lawsuits brought since 
        1996 by American victims of state sponsored terrorism abroad 
        and final judgments and financial awards in some of those cases 
        have been paid appropriately by using some of the blocked 
        assets of state sponsors of terrorism. Additional cases are 
        still pending.
            (5) Paying victims of state sponsored terrorism from the 
        blocked assets of state sponsors of acts of terrorism 
        (including their agencies and instrumentalities) will punish 
        those entities, deter future acts of terrorism, and provide a 
        powerful incentive for any foreign government to stop 
        sponsoring terrorist attacks on Americans.
            (6) There must be a level playing field for all American 
        victims of state sponsored terrorism who are pursuing redress 
        in the Federal courts and compensation from the blocked assets 
        of state sponsors of terrorism (including their agencies and 
        instrumentalities).

SEC. 3. SENSE OF THE SENATE.

    Considering the policy set forth in this Act, the Antiterrorism and 
Effective Death Penalty Act of 1996, and in the Victims of Trafficking 
and Violence Protection Act of 2000, it is the sense of Congress that 
it should be the policy of the United States--
            (1) to use the blocked assets of state sponsors of acts of 
        terrorism (including their agencies and instrumentalities) that 
        are under the control of the Secretary of the Treasury to pay 
        court-ordered judgments and awards made to United States 
        nationals harmed by such acts; and
            (2) to provide equal access to all United States victims of 
        state sponsored terrorism who have secured judgments and awards 
        in Federal courts against state sponsors of terrorism 
        (including their agencies and instrumentalities) and that those 
        judgments and awards be paid by state sponsors of terrorism 
        (including their agencies and instrumentalities) from any of 
        their blocked assets controlled by the Secretary of the 
        Treasury.

<DELETED>SEC. 4. SATISFACTION OF JUDGMENTS FROM BLOCKED ASSETS OF 
              TERRORISTS, TERRORIST ORGANIZATIONS, AND STATE SPONSORS 
              OF TERRORISM.</DELETED>

<DELETED>    (a) In General.--Except as provided in subsection (b), in 
every case in which a person has obtained a judgment against a 
terrorist party on a claim for compensatory damages for an act of 
terrorism, or a claim for compensatory damages brought pursuant to 
section 1605(a)(7) of title 28, United States Code, the blocked assets 
of any terrorist party, or any agency or instrumentality of a terrorist 
party, shall be available for satisfaction of the judgment.</DELETED>
<DELETED>    (b) Presidential Waiver.--</DELETED>
        <DELETED>    (1) In general.--Subject to paragraph (2), upon 
        determining on an asset-by-asset basis that a waiver is 
        necessary in the national security interest, the President may 
        waive the requirements of subsection (a) in connection with 
        (and prior to the enforcement of) any judicial order directing 
        attachment or satisfaction in aid of execution of judgment, or 
        execution of judgment, against any property subject to the 
        Vienna Convention on Diplomatic Relations or the Vienna 
        Convention on Consular Relations.</DELETED>
        <DELETED>    (2) Exception.--A waiver under this subsection 
        shall not apply to--</DELETED>
                <DELETED>    (A) property subject to the Vienna 
                Convention on Diplomatic Relations or the Vienna 
                Convention on Consular Relations that has been used for 
                any nondiplomatic purpose (including use as rental 
                property), and the proceeds of such use; or</DELETED>
                <DELETED>    (B) any asset subject to the Vienna 
                Convention on Diplomatic Relations or the Vienna 
                Convention on Consular Relations that is sold or 
                otherwise transferred for value to a third party, and 
                the proceeds of such sale or transfer.</DELETED>
<DELETED>    (c) Definitions.--In this Act:</DELETED>
        <DELETED>    (1) Blocked assets.--The term ``blocked assets'' 
        means assets seized or blocked by the United States in 
        accordance with law.</DELETED>
        <DELETED>    (2) Property and assets subject to vienna 
        conventions.--The terms ``property subject to the Vienna 
        Convention on Diplomatic Relations or the Vienna Convention on 
        Consular Relations'' and ``asset subject to the Vienna 
        Convention on Diplomatic Relations or the Vienna Convention on 
        Consular Relations'' mean any property or asset, respectively, 
        the attachment in aid of execution or execution of which may, 
        for the limited purpose of satisfying a judgment under 
        subsection (a), breach an obligation of the United States under 
        the Vienna Convention on Diplomatic Relations or the Vienna 
        Convention on Consular Relations, as the case may be.</DELETED>
        <DELETED>    (3) Terrorist party.--The term ``terrorist party'' 
        means a terrorist, a terrorist organization, or a foreign state 
        designated as a state sponsor of terrorism under section 6(j) 
        of the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)) or section 620A of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2371) (including any agency or instrumentality of 
        that state).</DELETED>

SEC. 4. SATISFACTION OF JUDGMENTS FROM FROZEN ASSETS OF TERRORISTS, 
              TERRORIST ORGANIZATIONS, AND STATE SPONSORS OF TERRORISM.

    (a) In General.--Notwithstanding any other provision of law, and 
except as provided in subsection (b), in every case in which a person 
has obtained a judgment against a terrorist party on a claim based upon 
an act of terrorism or for which a terrorist party is not immune under 
section 1605(a)(7) of title 28, United States Code, the blocked assets 
of that terrorist party (including the blocked assets of any agency or 
instrumentality of that terrorist party) shall be subject to execution 
or attachment in aid of execution in order to satisfy such judgment to 
the extent of any compensatory damages for which such terrorist party 
has been adjudged liable.
    (b) Presidential Waiver.--
            (1) In general.--Subject to paragraph (2), upon determining 
        on an asset-by-asset basis that a waiver is necessary in the 
        national security interest, the President may waive the 
        requirements of subsection (a) in connection with (and prior to 
        the enforcement of) any judicial order directing attachment in 
        aid of execution or execution against any property subject to 
        the Vienna Convention on Diplomatic Relations or the Vienna 
        Convention on Consular Relations.
            (2) Exception.--A waiver under this subsection shall not 
        apply to--
                    (A) property subject to the Vienna Convention on 
                Diplomatic Relations or the Vienna Convention on 
                Consular Relations that has been used by the United 
                States for any nondiplomatic purpose (including use as 
                rental property), or the proceeds of such use; or
                    (B) the proceeds of any sale or transfer for value 
                to a third party of any asset subject to the Vienna 
                Convention on Diplomatic Relations or the Vienna 
                Convention on Consular Relations.
    (c) Special Rule for Cases Against Iran.--Section 2002 of the 
Victims of Trafficking and Violence Protection Act of 2000 (Public Law 
106-386; 114 Stat. 1542) is amended--
            (1) in subsection (a)(2)(A)(ii), by inserting after ``July 
        27, 2000'' the following: ``or before October 28, 2000,'';
            (2) in subsection (b)(2)(B), by inserting after ``the date 
        of enactment of this Act'' the following: ``(less amounts 
        therein as to which the United States has an interest in 
        subrogation pursuant to subsection (c) arising prior to the 
        date of entry of the judgment or judgments to be satisfied in 
        whole or in part hereunder).'';
            (3) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Distribution of Foreign Military Sales Funds Inadequate To 
Satisfy Full Amount of Compensatory Awards Against Iran.--
            ``(1) Award distribution.--
                    ``(A) In general.--In the event that the Secretary 
                determines that the amounts available to be paid under 
                subsection (b)(2) are inadequate to pay the entire 
                amount of compensatory damages awarded in judgments 
                issued as of the date of the enactment of this 
                subsection in cases identified in subsection (a)(2)(A), 
                the Secretary shall, not later than 60 days after such 
                date, make payment from the account specified in 
                subsection (b)(2) to each party to which such judgment 
                has been issued a share of the amounts in that account 
                which are not subject to subrogation to the United 
                States under this Act.
                    ``(B) Calculation of amount.--The amount so paid to 
                each such person shall be calculated by the proportion 
                that the amount of compensatory damages awarded in a 
                judgment issued to that particular person bears to the 
                total amount of all compensatory damages awarded to all 
                persons to whom judgments have been issued in cases 
                identified in subsection (a)(2)(A) as of the date 
                referred to in subparagraph (A).
            ``(2) Enforcement of judgment.--Nothing herein shall bar, 
        or require delay in, enforcement of any judgment to which this 
        subsection applies under any procedure or against assets 
        otherwise available under this section or under any other 
        provision of law.
            ``(3) Partial judgment.--Any person receiving less than the 
        full amount of compensatory damages awarded to that party in 
        judgments to which this subsection applies shall not be 
        required to make the election set forth in subsection (a)(2)(C) 
        in order to qualify for payment hereunder.''.
    (d) Definitions.--In this section:
            (1) Terrorist party.--The term ``terrorist party'' means a 
        terrorist, a terrorist organization, or a foreign state 
        designated as a state sponsor of terrorism under section 6(j) 
        of the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j)) or section 620A of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2371).
            (2) Blocked asset.--The term ``blocked asset'' means any 
        asset seized or frozen by the United States in accordance with 
        law, or otherwise held by the United States without claim of 
        ownership by the United States.
            (3) Property or asset subject to the vienna convention on 
        diplomatic relations or the vienna convention on consular 
        relations.--The term ``property subject to the Vienna 
        Convention on Diplomatic Relations or the Vienna Convention on 
        Consular Relations'' and the term ``asset subject to the Vienna 
        Convention on Diplomatic Relations or the Vienna Convention on 
        Consular Relations'' mean any property or asset, respectively, 
        the attachment in aid of execution or execution of which would 
        result in a violation of an obligation of the United States 
        under the Vienna Convention on Diplomatic Relations or the 
        Vienna Convention on Consular Relations, as the case may be.




                                                       Calendar No. 451

107th CONGRESS

  2d Session

                                S. 2134

_______________________________________________________________________

                                 A BILL

   To allow American victims of state sponsored terrorism to receive 
           compensation from blocked assets of those states.

_______________________________________________________________________

                             June 27, 2002

                       Reported with an amendment