[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5796 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 5796

To establish a common fund to pay claims to the Americans held hostage 
in Iran, and to members of their families, who are identified as class 
    members in case number 1:08-CV-00487 (EGS) of the United States 
  District Court for the District of Columbia, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2012

 Mr. Braley of Iowa (for himself and Ms. Ros-Lehtinen) introduced the 
 following bill; which was referred to the Committee on the Judiciary, 
and in addition to the Committee on Foreign Affairs, 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 establish a common fund to pay claims to the Americans held hostage 
in Iran, and to members of their families, who are identified as class 
    members in case number 1:08-CV-00487 (EGS) of the United States 
  District Court for the District of Columbia, 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 ``Justice for the American Diplomats 
Held Hostage in Tehran Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 1979, agents of the Islamic Republic of Iran stormed 
        the United States Embassy in Tehran, taking American military 
        and diplomatic personnel hostage.
            (2) The Iranian Government then held United States Embassy 
        personnel as hostages for 444 days, subjecting them to profound 
        physical and mental abuse, and forcing the United States to 
        negotiate their release, under duress.
            (3) In the resultant agreement (commonly known as the 
        Algiers Accords) the United States agreed, among other steps, 
        to bar and preclude the hostages from prosecuting any claim 
        against Iran in United States courts.
            (4) The Algiers Accords were never submitted to Congress 
        for ratification and none of the hostages or their family 
        members was consulted by the United States Government or 
        consented to these provisions precluding prosecution of their 
        claims.
            (5) Notwithstanding the applicability of legal principles 
        which allowed the United States to renounce this obligation to 
        bar and preclude the prosecution of claims in United States 
        courts because they were so clearly negotiated under duress, 
        the United States Government has repeatedly intervened in 
        United States courts to preclude the prosecution of any claim 
        by the hostages against Iran, arguing that, in its opinion, 
        compliance with this agreement served overriding national 
        security interests which justified the taking of the hostages' 
        right to pursue compensation from Iran in United States courts.
            (6) The United States Government has failed to propose any 
        process by which the hostages and their family members could be 
        compensated for the injuries and damages suffered by them by 
        reason of the horrific and heinous treatment while in 
        captivity.
            (7) Congress has determined that the provision of 
        compensation to the hostages and their families through, among 
        other sources, funds obtained by vesting and liquidating 
        property in which Iran and its surrogates claim an interest 
        (including any funds held by the United States, including in 
        trust) is fully consistent with the Algiers Accords.
            (8) Congress has determined that, only upon the payment of 
        such compensation, should the agreement by the United States 
        Government to bar and preclude prosecution of such claims in 
        United States courts be confirmed and ratified by legislation, 
        notwithstanding the duress under which the United States 
        originally negotiated that agreement.

SEC. 3. JUSTICE FOR FORMER AMERICAN HOSTAGES IN IRAN.

    (a) Common Fund for Hostages.--Not later than 90 days after the 
date of the enactment of this Act, the Secretary of the Treasury, in 
consultation with the Secretary of State, shall establish a common fund 
to be administered by the class representatives and agents for the 
former American hostages in Iran and their survivors (as identified in 
case number 1:08-CV-00487 (EGS) of the United District Court for the 
District of Columbia). Such common fund shall--
            (1) be administered to pay claims to the Americans held 
        hostage in Iran, and to members of their families, who are 
        identified as class members in case number 1:08-CV-00487 (EGS) 
        of the United States District Court for the District of 
        Columbia; and
            (2) be administered for purposes of satisfying such claims, 
        as approved by the class representatives and agents identified 
        in that case number.
    (b) Funding.--
            (1) Sources.--
                    (A) Fines and penalties.--
                            (i) In general.--The President shall pay to 
                        the fund under subsection (a) an amount equal 
                        to 50 percent of all amounts collected as fines 
                        and penalties by reason of the application of 
                        clause (ii) on or after the date of enactment 
                        of this Act. The total amount of payments that 
                        may be made into the fund under this clause may 
                        not exceed the estimated total amount of 
                        payments to be made under subsection (d).
                            (ii) Fines and penalties.--The maximum 
                        fines and penalties authorized to be imposed, 
                        in whole or in part, for violations of any 
                        conduct or activities with respect to any 
                        government or person by reason of their 
                        connection with or sponsorship by Iran are 
                        hereby increased by 100 percent.
                    (B) Seized or frozen assets.--The President is 
                authorized to pay to the fund under subsection (a)--
                            (i) any funds or property in which Iran has 
                        an interest, and
                            (ii) any funds or property in which any 
                        person or entity subject to any law providing 
                        for sanctions against Iran by reason of such 
                        person's or entity's relationship to or 
                        connection with Iran has an interest,
                held by the United States (including in the form of a 
                trust) or subject to any prohibition or regulation with 
                respect to any financial transactions in connection 
                therewith. The President is authorized to vest and 
                liquidate any property identified in this subparagraph 
                in order to make payment as provided in this 
                subparagraph.
            (2) Timing of funding.--Payments of claims from the fund 
        under subsection (a)--
                    (A) using funds held by the United States or funds 
                that become subject to prohibition or regulation as of 
                the date of enactment of this Act shall be made not 
                later than 60 days of the date of enactment of this 
                Act; and
                    (B) using funds which come into the possession of 
                the United States or funds that become subject to 
                prohibition or regulation after the date of enactment 
                of this Act shall be paid not later 60 days after 
                coming into the possession of the United States or 
                funds that become subject to prohibition or regulation, 
                as the case may be.
            (3) Satisfaction of claims.--Payments to the fund under 
        subsection (a) shall be made until the amounts described in 
        subsection (d) are satisfied in full. If the President 
        determines that the amounts can be fully satisfied within 1 
        year after the date of enactment of this Act from funds other 
        than those held by the United States as trustee, the President 
        may defer payment of funds held by the United States as trustee 
        until one year after such date of enactment, but shall ensure 
        during such 1-year period of deferral that any such funds held 
        by the United States as trustee shall not be disbursed, 
        transferred or otherwise constrained for payment as otherwise 
        may be required under this Act.
    (c) Distribution of Funds.--
            (1) In general.--Funds paid to the fund under subsection 
        (b) shall be distributed by the class representatives and 
        agents to the former American hostages in Iran and their 
        survivors (as identified in case number 1:08-CV-00487 (EGS) of 
        the United States District Court for the District of Columbia) 
        in the amounts described in subsection (d).
            (2) Priority.--Subject to subsection (d), payments from 
        funds paid to the fund under subsection (b) shall be 
        distributed as follows:
                    (A) First, to each living former hostage identified 
                as a class member under subsection (a)(1).
                    (B) Second, to the estate of each deceased former 
                hostage identified as a class member under subsection 
                (a)(1).
                    (C) Third, to each spouse or child of a former 
                hostage identified as a class member under subsection 
                (a)(1) if the spouse or child is identified as a class 
                member under subsection (a)(1).
    (d) Amount of Payments.--The amount of payments from funds paid to 
the fund under subsection (b) shall be distributed as follows:
            (1) For each former hostage described in subsection 
        (c)(2)(A), $10,000 for each day of captivity of the former 
        hostage.
            (2) For the estate of each deceased former hostage 
        described in subsection (c)(2)(B), $10,000 for each day of 
        captivity of the former hostage.
            (3) For each spouse or child of a former hostage described 
        in subsection (c)(2)(C), $5,000 for each day of captivity of 
        the former hostage.
    (e) Subrogation.--The United States shall be fully subrogated, with 
respect to payments under this Act, to all rights of each individual 
paid under subsection (d) against the Government of Iran or the Iranian 
Revolutionary Guard Corps or its affiliates or agents. The President 
shall pursue these subrogated rights as claims or offsets of the United 
States in appropriate ways until such subrogated claims have been 
resolved to the satisfaction of the United States.
    (f) Preclusion of Suit and Waiver of Claims.--Upon payment of all 
amounts described in subsection (d), each person receiving such payment 
shall be precluded from bringing suit against Iran of any claim arising 
out of events occurring between November 3, 1979, and January 20, 1981, 
and all such claims as against Iran shall be deemed waived and forever 
released.
    (g) Reimbursement of Seized or Frozen Assets.--Upon payment of all 
amounts described in subsection (d), the President is authorized to 
make payments from amounts paid to the fund under subsection (b)(1)(A) 
to any person or entity described in subsection (b)(1)(B) for purposes 
of reimbursing such person or entity for funds or property of such 
person or entity held by the United States as identified in subsection 
(b)(1)(B).
    (h) Deposit of Funds in the Treasury.--Any amounts in the fund 
under subsection (a) which remain after the date on which payments of 
all amounts described in subsection (d) are made, or the date that is 2 
years after the date of the enactment of this Act, whichever occurs 
later, shall be deposited in the Treasury of the United States.
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