[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2597 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2597

 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

                             July 20, 2011

 Mr. Pallone (for himself, Mrs. Maloney, and Mr. Bilirakis) introduced 
  the following bill; which was referred to the Committee on Foreign 
   Affairs, 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 that arise out of the 
continued exclusion of nationals of the United States from property 
such nationals own that is located in those portions of the territory 
of Cyprus that 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) Claimant.--The term `claimant' means any national of 
        the United States who files a claim under this title.
            ``(2) Claims fund.--The term `Claims Fund' means the claims 
        fund described in section 808(a).
            ``(3) Commission.--The term `Commission' means the Foreign 
        Claims Settlement Commission of the United States.
            ``(4) Cyprus.--The term `Cyprus' means the Republic of 
        Cyprus.
            ``(5) National of the united states.--The term `national of 
        the United States' means--
                    ``(A) a natural person who is either a citizen of 
                the United States or an alien lawfully admitted for 
                permanent residence to the United States;
                    ``(B) a natural person who acquired title to 
                property in Cyprus through intestate or testate 
                succession under the laws of the United States or of 
                any State, the District of Columbia, the Commonwealth 
                of Puerto Rico, or any territory or possession of the 
                United States from or through a natural person 
                described in subparagraph (A); or
                    ``(C) a corporation or other legal entity that is 
                organized under the laws of the United States or of any 
                State, the District of Columbia, the Commonwealth of 
                Puerto Rico, or any territory or possession of the 
                United States, if one or more natural persons described 
                in subparagraph (A) own, directly or indirectly, 50 
                percent or more of the outstanding capital stock or 
                other beneficial interest of such corporation or 
                entity.
            ``(6) Property.--The term `property' means any real 
        property or any right or interest in real property, including 
        any leasehold interest, held under the laws of Cyprus and 
        located in any portion of the territory of Cyprus that is 
        occupied by Turkey.
            ``(7) Turkey.--The term `Turkey' means--
                    ``(A) the Republic of Turkey;
                    ``(B) any political subdivision, agency, or 
                instrumentality of the Republic of Turkey, including 
                the Turkish Armed Forces;
                    ``(C) 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 Republic of Turkey, including the unincorporated 
                association known as the `Turkish Republic of Northern 
                Cyprus';
                    ``(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'; and
                    ``(E) any natural person or legal entity that 
                purports to claim or hold any title or right to 
                property described in paragraph (6) under the alleged 
                authority of any entity described in of subparagraph 
                (A), (B), (C), or (D).

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

    ``(a) In General.--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 806.
    ``(b) Requirement To Receive Claims.--The Commission shall receive 
claims under section 804, determine the validity of such claims, and 
make awards under section 804 as of the effective date of the American-
Owned Property in Occupied Cyprus Claims Act without regard to whether 
or not--
            ``(1) the President authorizes the Secretary of State to 
        commence the negotiations to which subsection (a) refers; and
            ``(2) if the President does authorize the Secretary of 
        State to commence such negotiations, the Secretary of State 
        commences such negotiations.

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

    ``(a) Determination of Claims.--
            ``(1) In general.--Subject to paragraph (2), 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 that--
                    ``(A) is owned by such nationals under the laws of 
                Cyprus; and
                    ``(B) at the time the exclusion from or occupation 
                of the property began, was owned wholly or partially, 
                directly or indirectly, by nationals of the United 
                States under the laws of Cyprus.
            ``(2) Limitation.--The Commission shall reduce the dollar 
        amount of the fair rental market value of each claim to the 
        extent that possession of the property has been restored to the 
        claimant or the claimant has received actual and adequate 
        compensation for the use and occupation of the property from 
        any source on account of the same loss or losses for which the 
        claim is filed.
    ``(b) Ownership Rights Retained.--No claimant shall be required nor 
be deemed, either directly or indirectly, to transfer, waive, or 
otherwise forfeit any right of ownership in or to the property that 
claimant owns under the laws of Cyprus as a condition to or as the 
result of filing a claim, having the claim determined, or accepting an 
award based on the claim.
    ``(c) Submission of Claims.--
            ``(1) Requirement to establish time period.--Not later than 
        60 calendar days after the date of the enactment of an 
        appropriations Act that makes available funds for the payment 
        of administrative expenses incurred by the Commission in 
        carrying out this title, the Commission shall establish a 
        period during which claimants may submit claims under this 
        title.
            ``(2) Publication.--The Commission shall publish in the 
        Federal Register the beginning and ending dates of the time 
        period to which paragraph (1) refers.
            ``(3) Time period.--The time period to which paragraph (1) 
        refers may not exceed 24 consecutive calendar months beginning 
        with the first month following the month in which the notice is 
        published under paragraph (2).

``SEC. 805. OWNERSHIP OF CLAIMS.

    ``A claim may be favorably considered under section 804--
            ``(1) only if the property right on which it 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 or 
        acquired by one or more nationals of the United States 
        continuously from that date until the date on which the claim 
        is filed with the Commission.

``SEC. 806. CERTIFICATION; ASSIGNED CLAIMS.

    ``(a) Certification of Claims.--
            ``(1) Certification to the claimant.--The Commission shall 
        certify to each claimant who files a claim under this title--
                    ``(A) the dollar amount determined by the 
                Commission to be the loss suffered by the claimant that 
                is covered by this title; and
                    ``(B) if, on the date on which the Commission makes 
                the certification under subparagraph (A), 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) Certification to the secretary of state.--The 
        Commission shall certify to the Secretary of State--
                    ``(A) the dollar 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 upon which the 
                Commission relied and the reasoning employed by the 
                Commission in determining the dollar amount described 
                in subparagraph (A) and the mathematical basis 
                described 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 may not exceed the 
amount of actual consideration paid by the last such assignee.

``SEC. 807. CONSOLIDATED AWARDS.

    ``With respect to any claim under section 804 that, 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. 
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. 808. CLAIMS FUND.

    ``(a) Authority.--The Secretary of the Treasury may establish in 
the Treasury of the United States a Claims Fund for the payment of 
unsatisfied claims of nationals of the United States against Turkey, as 
authorized by this title.
    ``(b) Contributions to Claims Fund.--The Claims Fund shall consist 
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 concluded between the Governments of the 
United States and Turkey.
    ``(c) Deduction of Administrative Expenses.--The Secretary of the 
Treasury shall deduct from any amounts covered into the Claims Fund a 
dollar 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. 809. AWARD PAYMENT PROCEDURES.

    ``(a) Certification of Awards to Secretary of the Treasury.--The 
Commission shall certify to the Secretary of the Treasury the dollar 
amount of 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 $25,000 or the 
                principal amount of the award, 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 according to the 
                proportions that 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. 810. SETTLEMENT PERIOD.

    ``The Commission shall complete its affairs in connection with the 
settlement of claims pursuant to this title not later than the end of 
the 3-year period beginning on the final date for the filing of claims 
as provided in section 804(c).

``SEC. 811. 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. 812. FEES FOR SERVICES.

    ``(a) Limitation on Fees.--
            ``(1) Limitation.--Remuneration on account of services 
        rendered on behalf of any claimant in connection with any claim 
        filed with the Commission under this title may not exceed 10 
        percent of the total dollar amount paid pursuant to an 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) is unlawful and 
        void.
    ``(b) Penalty for Violation.--Any person who demands or receives 
any remuneration that exceeds the maximum remuneration set forth in 
subsection (a) shall be fined under title 18, United States Code, 
imprisoned for not more than 12 months, or both.

``SEC. 813. APPLICATION OF OTHER PROVISIONS.

    ``(a) In General.--
            ``(1) Provisions.--To the extent that they are not 
        inconsistent with the provisions of the title, the following 
        provisions of title I of this Act shall apply to this title:
                    ``(A) Subsections (b), (c), (d), (e) and (h) of 
                section 4.
                    ``(B) Subsections (c), (d), (e) and (f) of section 
                7.
            ``(2) Reference.--Any reference to `this title' in the 
        provisions described in subparagraph (A) or (B) of paragraph 
        (1) is a reference to such provisions and to this title.
    ``(b) Administrative Procedure.--Except as otherwise set forth in 
this title and in those provisions of title I set forth in subparagraph 
(A) or (B) of subsection (a)(1), 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. 814. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for any fiscal year 
beginning on or after October 1, 2010, 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. 3. JURISDICTION OF UNITED STATES 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 by nationals of the United States who own 
              real property in Cyprus against private persons
    ``(a) Jurisdiction.--The district courts shall have original 
jurisdiction of any civil action that is brought--
            ``(1) by a national of the United States--
                    ``(A) who holds title to any real property under 
                the laws of Cyprus that is located in that portion of 
                the territory of Cyprus that is occupied by Turkey; and
                    ``(B) who has been excluded from that property by 
                reason of such occupation;
            ``(2) 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; and
            ``(3) 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 `national of the United States' means--
                    ``(A) a natural person who is either a citizen of 
                the United States or an alien lawfully admitted for 
                permanent residence to the United States;
                    ``(B) a natural person who acquired title to 
                property in Cyprus through intestate or testate 
                succession under the laws of the United States or of 
                any State, the District of Columbia, the Commonwealth 
                of Puerto Rico, or any territory or possession of the 
                United States from or through a natural person 
                described in subparagraph (A); or
                    ``(C) a corporation or other legal entity that is 
                organized under the laws of the United States or of any 
                State, the District of Columbia, the Commonwealth of 
                Puerto Rico, or any territory or possession of the 
                United States, if one or more natural persons described 
                in subparagraph (A) own, directly or indirectly, 50 
                percent or more of the outstanding capital stock or 
                other beneficial interest of such corporation or 
                entity;
            ``(2) the term `property' means any real property or any 
        right or interest in any real property, including any leasehold 
        interest, to which a national of the United States holds title 
        under the laws of Cyprus;
            ``(3) the term `Turkey' means--
                    ``(A) the Republic of Turkey;
                    ``(B) any political subdivision, agency, or 
                instrumentality of the Republic of Turkey, including 
                the Turkish Armed Forces;
                    ``(C) any agent of or unincorporated association 
                that purports to discharge any function of a nation-
                state under the auspices of the Republic of Turkey, 
                including the unincorporated association known as the 
                `Turkish Republic of Northern Cyprus'; 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';
            ``(4) the term `Cyprus' means the Republic of Cyprus; and
            ``(5) the term `private person' means--
                    ``(A) any natural person who--
                            ``(i) at any time on or after July 20, 
                        1974, uses, occupies, or benefits from property 
                        in Cyprus, if such use, occupation, or benefit 
                        was enabled by Turkey or any person or entity, 
                        other than a national of the United States who 
                        held lawful title to that property under the 
                        laws of Cyprus as of July 20, 1974; and
                            ``(ii) holds such title when any civil 
                        action under this section is brought by reason 
                        of such use, occupation, or benefit; and
                    ``(B) any corporation or other legal entity that--
                            ``(i) is organized under the laws of the 
                        United States or of any State, the District of 
                        Columbia, the Commonwealth of Puerto Rico, or 
                        any territory or possession of the United 
                        States or under the laws of any foreign state; 
                        and
                            ``(ii)(I) at any time on or after July 20, 
                        1974, uses, occupies, or benefits from property 
                        in Cyprus, if such use, occupation, or benefit 
                        was enabled by Turkey or any person or entity, 
                        other than a national of the United States who 
                        held title to that property under the laws of 
                        Cyprus as of July 20, 1974; and
                            ``(II) holds such title when any civil 
                        action under this section is brought by reason 
                        of such use, occupation, or benefit.
    ``(c) Special Rules.--For purposes of this section--
            ``(1) process is served if service is accomplished in any 
        manner set forth in this title;
            ``(2) the district court shall not consider the doctrine of 
        forum non conveniens in any civil action asserted under this 
        section 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; and
            ``(4) in determining the amount of any award in any civil 
        action, the district court shall consider only evidence of the 
        fair rental market value of the property for each calendar year 
        for which the plaintiff has been excluded from its property, as 
        that value would have been calculated in Cyprus if the 
        plaintiff had not been excluded from the property.
    ``(d) Limitation on Actions.--Any civil action against a private 
person under this section may be brought at any time before the end of 
the period of 36 consecutive calendar months that begins after the last 
day of the month in which the private person ceases to use, occupy, or 
benefit from the property that is the subject of the action. This 
subsection applies in lieu of section 1658.''.
    (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 by nationals of the United States who own real 
                            property in Cyprus against private 
                            persons.''.
    (c) Applicability.--The amendments made by this section shall apply 
to any cause of action arising before, on, or after the date of the 
enactment of this Act.

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. 1414. Venue of civil actions against private persons brought by 
              nationals of the United States who own real property in 
              Cyprus
    ``Notwithstanding any other provision of this chapter, a civil 
action under section 1370 may be brought only in the District Court for 
the District of Columbia or the District Court for the Southern 
District of New York.''.
    (b) Conforming Amendment.--The table of sections for chapter 87 of 
title 28, United States Code, is amended by adding at the end the 
following new item:

``1414. Venue of civil actions against private persons brought by 
                            nationals of the United States who own real 
                            property in Cyprus.''.

SEC. 5. EFFECTIVE DATE.

    Subject to section 3(c), this Act and the amendments made by this 
Act shall take effect on the date of the enactment of this Act.
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