[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5071 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5071

 To amend the International Claims Settlement Act of 1949 to allow for 
 certain claims of nationals of the United States against Turkey, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 14, 2004

 Mr. Pallone (for himself, Mr. Bilirakis, and Mrs. Maloney) introduced 
      the following bill; which was referred to the Committee on 
   International Relations, and in addition to the Committee on the 
 Judiciary, 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

_______________________________________________________________________

                                 A BILL


 
 To amend the International Claims Settlement Act of 1949 to allow for 
 certain claims of nationals of the United States against Turkey, and 
                          for other purposes.

    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 ``American-Owned Property in Occupied 
Cyprus Claims Act''.

SEC. 2. INTERNATIONAL CLAIMS SETTLEMENT ACT.

    The International Claims Settlement Act of 1949 (22 U.S.C. 1621 et 
seq.) is amended by adding at the end the following new title:

                  ``TITLE VIII--CLAIMS AGAINST TURKEY

``SEC. 801. PURPOSE.

    ``The purpose of this title is to provide for the determination of 
the validity and amounts of claims against Turkey which arise out of 
the continued exclusion of nationals of the United States from property 
they own that is located in those portions of the territory of Cyprus 
which Turkey occupies. This title shall not be construed as authorizing 
or as any intention to authorize an appropriation by the United States 
for the purpose of paying such claims.

``SEC. 802. DEFINITIONS.

    ``As used in this title--
            ``(1) the term `claimant' means any national of the United 
        States who files a claim under this title.
            ``(2) the term `Claims Fund' means the special fund 
        established in the Treasury of the United States composed of 
        such sums as may be paid to or realized by the United States 
        pursuant to the terms of any agreement settling those claims 
        described in section 804 that may be entered into between the 
        Governments of the United States and Turkey;
            ``(3) the term `Commission' means the Foreign Claims 
        Settlement Commission of the United States;
            ``(4) the term `Cyprus' means the Republic of Cyprus;
            ``(5) the term `national of the United States' means--
                    ``(A) a natural person who is a citizen of the 
                United States; and
                    ``(B) a corporation or other legal entity which is 
                organized under the laws of the United States or of any 
                State, the District of Columbia, or the Commonwealth of 
                Puerto Rico, if natural persons who are citizens of the 
                United States own, directly or indirectly, 50 percent 
                or more of the outstanding capital stock or other 
                beneficial interest of such corporation or entity;
            ``(6) the term `property' means any real property, or any 
        right, or interest in real property, including any lease owned 
        under the laws of Cyprus and located in those portions of the 
        territory of Cyprus that are occupied by Turkey;
            ``(7) the term `Turkey' means--
                    ``(A) the Republic of Turkey;
                    ``(B) any agent of the Government of Turkey, or any 
                unincorporated association that purports to discharge 
                any function of a nation-state under the auspices of 
                the Government of Turkey, including, but not limited 
                to, the unincorporated association known as the 
                `Turkish Republic of Northern Cyprus'; and
                    ``(C) any political subdivision, agency, or 
                instrumentality of Turkey, including, but not limited 
                to, the Turkish Armed Forces; and
                    ``(D) any organization that purports to be a 
                political subdivision, agency, or instrumentality of 
                the unincorporated association known as the `Turkish 
                Republic of Northern Cyprus'.

``SEC. 803. COMMENCEMENT OF NEGOTIATIONS BY THE SECRETARY OF STATE.

    ``The President is urged to authorize the Secretary of State to 
commence negotiations with Turkey and to continue such negotiations 
until an agreement is reached with respect to the payment by Turkey of 
claims certified under section 807. The Commission shall receive 
claims, determine the validity of claims, and make awards under section 
804 as of the effective date of this title without regard to whether or 
not the President authorizes the Secretary of State to commence such 
negotiations and without regard to whether or not the Secretary of 
State commences such negotiations if authorized.

``SEC. 804. RECEIPT AND DETERMINATION OF CLAIMS.

    ``(a) Determination of Claims.--The Commission shall receive and 
determine in accordance with applicable substantive law, including 
international law, the validity and amounts of claims by nationals of 
the United States against Turkey arising on or after July 20, 1974, for 
the fair rental market value of the use and continued occupation by 
Turkey of property located in the territory of Cyprus which--
            ``(1) is owned by such nationals under the laws of Cyprus, 
        and
            ``(2) at the time the exclusion from or occupation of the 
        property began, was owned, under the laws of Cyprus, wholly or 
        partially, directly or indirectly, by nationals of the United 
        States,
to the extent restoration or adequate compensation for such use and 
occupation has not been made.
    ``(b) Rights in Property Retained.--A claimant shall not be 
required or deemed, either directly or indirectly, to transfer, waive, 
or otherwise forfeit any right of ownership in or to the property that 
the claimant owns under the laws of Cyprus as a condition of or as the 
result of filing a claim under this title, having the claim determined, 
or accepting an award based on the claim.
    ``(c) Submission of Claims.--Any claim under subsection (a) may not 
be considered unless it is submitted to the Commission within the 
period specified by the Commission by notice published in the Federal 
Register within 60 days after the date of the enactment of this title 
or of legislation making appropriations to the Commission for payment 
of administrative expenses incurred in carrying out its functions under 
this title, whichever date is later. The period specified by the 
Commission shall not be more than a period of 24 consecutive calendar 
months beginning on the last day of the month in which the notice is 
published.

``SEC. 805. OWNERSHIP OF CLAIMS.

    ``A claim may be favorably considered under section 804--
            ``(1) only if the property right on which the claim is 
        based was owned, wholly or partially, directly or indirectly, 
        by a national of the United States under the laws of Cyprus on 
        the date on which the exclusion from or occupation of the 
        property began; and
            ``(2) only to the extent that the claim has been held by 
        one or more nationals of the United States continuously from 
        that date until the date the claim is filed with the 
        Commission.

``SEC. 806. OFFSETS.

    ``In determining the amount of any claim under this title, the 
Commission shall deduct all amounts the claimant has received from any 
source on account of the same loss or losses for which the claim is 
filed.

``SEC. 807. CERTIFICATION; ASSIGNED CLAIMS.

    ``(a) Certification of Claims.--
            ``(1) To the claimant.--The Commission shall certify to 
        each claimant who files a claim under this title--
                    ``(A) the amount determined by the Commission to be 
                the loss suffered by the claimant which is covered by 
                this title; and
                    ``(B) if, on the date on which the certification 
                under subparagraph (A) is made, Turkey is excluding the 
                claimant from the claimant's property, a mathematical 
                basis determined by the Commission for calculating the 
                loss suffered by the claimant for the continued use and 
                occupation of the property by Turkey after the date of 
                the award.
            ``(2) To the secretary of state.--The Commission shall 
        certify to the Secretary of State--
                    ``(A) the amount of each claim certified under 
                paragraph (1)(A);
                    ``(B) any mathematical basis certified under 
                paragraph (1)(B) in connection with that claim; and
                    ``(C) a statement of the evidence relied upon and 
                the reasoning employed in making the Commission's 
                determination of the amount referred to in subparagraph 
                (A) and the mathematical basis referred to in 
                subparagraph (B).
    ``(b) Assigned Claims.--In any case in which a claim under this 
title is assigned by purchase before the Commission determines the 
amount due on that claim, the amount so determined shall not exceed the 
amount of actual consideration paid by the last such assignee.

``SEC. 808. CONSOLIDATED AWARDS.

    ``With respect to any claim under section 804 which, at the time of 
the award, is vested in persons other than the person by whom the 
original loss was sustained, the Commission shall issue a consolidated 
award in favor of all claimants then entitled to the award. The award 
shall indicate the respective interests of such claimants in the award, 
and all such claimants shall participate, in proportion to their 
indicated interests, in any payments that may be made under this title 
in all respects as if the award had been in favor of a single person.

``SEC. 809. CLAIMS FUND.

    ``(a) Establishment.--The Secretary of the Treasury may establish 
in the Treasury of the United States the Claims Fund for the payment of 
unsatisfied claims of nationals of the United States against Turkey, as 
authorized by this title.
    ``(b) Deduction for Administrative Expenses.--The Secretary of the 
Treasury shall deduct from any amounts covered into the Claims Fund an 
amount equal to 5 percent thereof as reimbursement to the Government of 
the United States for expenses incurred by the Commission and by the 
Department of the Treasury in the administration of this title. The 
amounts so deducted shall be covered into the Treasury as miscellaneous 
receipts.

``SEC. 810. AWARD PAYMENT PROCEDURES.

    ``(a) Certification of Awards to Secretary of the Treasury.--The 
Commission shall certify to the Secretary of the Treasury, in terms of 
United States currency, each award made pursuant to section 804.
    ``(b) Payment of Awards.--
            ``(1) Principal amounts.--Upon certification of each award 
        made under section 804, the Secretary of the Treasury shall, 
        out of the sums covered into the Claims Fund, make payments on 
        account of such awards as follows, and in the following order 
        of priority:
                    ``(A) Payment in the amount of $5,000 or the 
                principal amount of the award (excluding any 
                calculations made under any mathematical basis 
                certified under section 807(a)(1)(B)), whichever is 
                less.
                    ``(B) Thereafter, payments from time to time, in 
                ratable proportions, on account of the unpaid balance 
                of the principal amounts of all awards (including any 
                calculations made under any mathematical basis 
                certified under section 807(a)(1)(B)) according to the 
                proportions which the unpaid balance of such awards 
                bear to the total amount in the Claims Fund available 
                for distribution at the time such payments are made.
            ``(2) Subsequent payments.--After payment has been made in 
        full of the principal amounts of all awards pursuant to 
        paragraph (1), pro rata payments may be made on account of any 
        interest that may be allowed on such awards.
    ``(c) Regulations.--Payments or applications for payments under 
subsection (b) shall be made in accordance with such regulations as the 
Secretary of the Treasury may prescribe.

``SEC. 811. SETTLEMENT PERIOD.

    ``The Commission shall complete its affairs in connection with the 
settlement of claims under this title not later than 3 years after the 
final date for the filing of claims as provided in section 804.

``SEC. 812. TRANSFER OF RECORDS.

    ``The Secretary of State, the Secretary of the Treasury, and the 
Secretary of Defense shall transfer or otherwise make available to the 
Commission such records and documents relating to claims authorized by 
this title as may be required by the Commission in carrying out its 
functions under this title.

``SEC. 813. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for any fiscal year 
beginning on or after October 1, 2004, such sums as may be necessary to 
enable the Commission and the Department of the Treasury to pay their 
respective administrative expenses incurred in carrying out their 
functions under this title. Amounts appropriated under this section may 
remain available until expended.

``SEC. 814. FEES FOR SERVICES.

    ``(a) Limitation on Fees.--
            ``(1) Limitation.--No remuneration on account of services 
        rendered on behalf of any claimant, in connection with any 
        claim filed with the Commission under this title, may exceed 10 
        percent of the total amount paid pursuant to any award 
        certified under the provisions of this title on account of such 
        claim.
            ``(2) Notification of agreements.--Any agreement contrary 
        to the limitation set forth in paragraph (1) shall be unlawful 
        and void.
    ``(b) Penalty for Violation.--Whoever, in the United States or 
elsewhere, demands or receives, on account of services rendered to 
which paragraph (1) applies, any remuneration in excess of the maximum 
permitted by subsection (a), shall be fined not more than $5,000, or 
imprisoned not more than 12 months, or both.

``SEC. 815. APPLICATION OF OTHER PROVISIONS.

    ``(a) In General.--To the extent they are not inconsistent with the 
provisions of this title, the following provisions of title I of this 
Act shall apply to this title: subsections (b), (c), (d), (e), and (h) 
of section 4 and subsections (c), (d), (e), and (f) of section 7. Any 
reference in such provisions to `this title' shall be deemed to be a 
reference to those provisions and to this title.
    ``(b) Applicability of Administrative Procedure.--Except as 
otherwise provided in this title and in those provisions of title I 
referred to in subsection (a), the Commission shall comply with the 
provisions of subchapter II of chapter 5, and the provisions of chapter 
7, of title 5, United States Code.

``SEC. 816. SEPARABILITY.

    ``If any provision of this title or the application thereof to any 
person or circumstance is held invalid, the remainder of this title or 
the application of such provision to other persons or circumstances 
shall not be affected.''.

SEC. 3. JURISDICTION OF U.S. DISTRICT COURTS.

    (a) In General.--Chapter 85 of title 28, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1370. Civil actions against private persons by nationals of the 
              United States who own real property in Cyprus
    ``(a) In General.--The district courts shall have original 
jurisdiction of any civil action brought by a national of the United 
States--
            ``(1) who holds title to any property under the laws of 
        Cyprus that is located in that portion of the territory of 
        Cyprus that is occupied by Turkey as the result of the invasion 
        of Cyprus by Turkey on July 20, 1974, and
            ``(2) who has been excluded from the property by reason of 
        such occupation,
against any private person who for any purpose and in any way uses, 
occupies, or benefits from that property at any time during the period 
of such exclusion, for the fair rental value of the property during the 
period of such use, occupation, or benefit.
    ``(b) Definitions.--As used in this section--
            ``(1) the term `Cyprus' means the Republic of Cyprus;
            ``(2) the term `national of the United States' means--
                    ``(A) a natural person who is a citizen of the 
                United States; and
                    ``(B) a corporation or other legal entity which is 
                organized under the laws of the United States or of any 
                State, the District of Columbia, or the Commonwealth of 
                Puerto Rico, if natural persons who are citizens of the 
                United States own, directly or indirectly, 50 percent 
                or more of the outstanding capital stock or other 
                beneficial interest of such corporation or entity;
            ``(3) the term `private person' means any natural person or 
        legal entity other than Turkey;
            ``(4) the term `property' means any real property or any 
        right or interest in any real property, including any lease to 
        which a national of the United States holds title under the 
        laws of Cyprus; and
            ``(5) the term `Turkey' means--
                    ``(A) the Republic of Turkey;
                    ``(B) any agent of the Government of Turkey, or any 
                unincorporated association that purports to discharge 
                any function of a nation-state under the auspices of 
                the Government of Turkey, including, but not limited 
                to, the unincorporated association known as the 
                `Turkish Republic of Northern Cyprus';
                    ``(C) any political subdivision, agency, or 
                instrumentality of the Republic of Turkey, including 
                but not limited to the Turkish Armed Forces; and
                    ``(D) any organization that purports to be a 
                political subdivision, agency, or instrumentality of 
                the unincorporated association known as the `Turkish 
                Republic of Northern Cyprus';
    ``(c) Special Rules.--In any civil action brought under this 
section--
            ``(1) process shall be deemed served if service is 
        accomplished in any manner provided under this title;
            ``(2) the district court shall not consider the doctrine of 
        forum non conveniens and shall refuse to hear any motion or 
        request by any person or party that the civil action be 
        dismissed on the grounds of forum non conveniens;
            ``(3) in determining whether the person or party asserting 
        the civil action has lawful title, the district court shall 
        apply only the laws of Cyprus in making that determination;
            ``(4) in determining the amount of any award in the civil 
        action, the district court shall consider only evidence of the 
        fair rental market value of the property for the period of 
        occupation, use, or benefit by the person against whom the 
        action is brought, as that value would have been calculated in 
        Cyprus if the plaintiff had not been excluded from the 
        property; and
            ``(5) the court shall deduct the amount of any award paid 
        to the plaintiff under title VIII of the International Claims 
        Settlement Act of 1949, or the amount of any judgment for the 
        plaintiff under section 5 of the American-Owned Property in 
        Occupied Cyprus Claims Act on account of the same use, 
        occupation, or benefit that is the basis of the action under 
        this section.
    ``(d) Limitation of Action.--Any civil action against a private 
person under this section may not be brought later than 36 consecutive 
calendar months after the last day of the month in which the private 
person ceases to use, occupy, or benefit from the property. This 
subsection applies in lieu of section 1658 of this title.''.
    (b) Conforming Amendment.--The table of sections for chapter 85 of 
title 28, United States Code, is amended by adding at the end the 
following new item:

``1370. Civil actions against private persons by nationals of the 
                            United States who own real property in 
                            Cyprus.''.

SEC. 4. VENUE.

    (a) In General.--Chapter 87 of title 28, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1408. Venue for civil actions against private persons brought by 
              nationals of the United States who own real property in 
              Cyprus
    ``A civil action under section 1370 may be brought only in the 
United States District Court for the District of Columbia and the 
United States District Court for the Southern District of New York.''.
    (b) Conforming Amendment.--The table of sections for chapter 85 of 
title 28, United States Code, is amended by adding at the end the 
following new item:

``1408. Venue for civil actions against private persons brought by 
                            nationals of the United States who own real 
                            property in Cyprus.''.

SEC. 5. ACTION AGAINST TURKISH GOVERNMENT.

    (a) Jurisdiction of U.S. Courts.--The Government of Turkey shall 
not be immune from the jurisdiction of the courts of the United States 
or of the States in any case in which--
            (1) rights in property of a national of the United States 
        that is occupied by the Government of Turkey in violation of 
        international law are in issue; and
            (2) that property or any property exchanged for such 
        property--
                    (A) is present in the United States in connection 
                with a commercial activity carried on by the Government 
                of Turkey in the United States; or
                    (B) is owned or operated by an agency or 
                instrumentality of the Government of Turkey and that 
                agency or instrumentality--
                            (i) is engaged in a commercial activity in 
                        the United States; or
                            (ii) purchases or otherwise acquires any 
                        good or service for which the approval, 
                        authorization, or consent of the United States 
                        is required by law, by the President, or by any 
                        department, agency, or instrumentality of the 
                        United States Government.
    (b) Applicability of and Relationship to Foreign Sovereign 
Immunities Act.--
            (1) Applicability.--The provisions of chapter 97 of title 
        28, United States Code, apply to a civil action brought under 
        subsection (a) as if the action were brought under such 
        chapter.
            (2) Assertion of independent jurisdiction.--The 
        jurisdiction conferred by subsection (a) is in addition to any 
        jurisdiction conferred by chapter 97 of title 28, United States 
        Code.
    (c) Deductions of Other Awards.--In any action brought under 
subsection (a), the court shall deduct from the amount of any judgment 
the amount of any award paid to the plaintiff under title VIII of the 
International Claims Settlement Act of 1949, or the amount of any 
judgment for the plaintiff under section 1370 of title 28, United 
States Code, on account of the same subject matter that is the basis of 
the action under this section.
    (d) Definitions.--In this section--
            (1) the term ``Government of Turkey'' includes all the 
        entities described in subparagraphs (B), (C), and (D) of 
        section 802(7) of the International Claims Settlement Act of 
        1949;
            (2) the term ``agency or instrumentality of the Government 
        of Turkey'' means any of the entities described in 
        subparagraphs (B), (C), and (D) of section 802(7) of the 
        International Claims Settlement Act of 1949;
            (3) the term ``court of the United States'' has the meaning 
        given that term in section 451 of title 28, United States Code; 
        and
            (4) the terms ``national of the United States'' and 
        ``property'' have the meanings given those terms in section 802 
        of the International Claims Settlement Act of 1949.

SEC. 6. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
the date of the enactment of this Act.
                                 <all>