[Congressional Record Volume 153, Number 126 (Thursday, August 2, 2007)]
[Senate]
[Pages S10793-S10794]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. Specter, Mr. Menendez, Mr. 
        Cornyn, Mr. Coleman, Mr. Lott, Mr. Lieberman, Mr. Schumer, Mrs. 
        Clinton, Mr. Casey, Ms. Collins, Mr. Graham, Mr. Biden, Mr. 
        Stevens, and Mrs. Feinstein):
  S. 1944. A bill to provide justice for victims of state-sponsored 
terrorism; to the Committee on the Judiciary.
  Mr. LAUTENBERG. Mr. President, I rise to introduce the Justice for 
Victims of State Sponsored Terrorism Act with my colleagues, Senators 
Specter, Menendez, Cornyn, Coleman, Lott, Lieberman, Schumer, Clinton, 
Casey, Collins, Graham, Biden, Stevens, and Feinstein.
  I am proud to introduce this legislation on behalf of the many 
Americans who have suffered at the hands of State sponsors of 
terrorism. This important legislation will allow victims of state 
sponsored terrorism to have their day in court. It will do so by 
enabling these individuals to both sue for liability and seek financial 
compensation from the states, such as Iran, which committed these 
murderous acts, thereby starving them of the funds that they use to 
strike at innocent victims.
  In 1983, the U.S. Marine Corps barracks in Beirut, Lebanon, was 
bombed by the Lebanese terrorist organization Hezbollah, killing 241 
servicemen and wounding 100 others. In 2003, the U.S. District Court in 
Washington, DC, found the Republic of Iran, which directly supports 
Hezbollah, guilty of masterminding that bombing. The victims and their 
families have the right to sue their tormentors and have judgments 
against Iran, yet the judgments are not being enforced.
  In 1996, the President signed into law legislation that I wrote to 
amend the Foreign Sovereign Immunities Act to give private American 
citizens the right to hold U.S. Department of State-designated state 
sponsors of terrorism liable in U.S. courts. This legislation, also 
known as the Flatow amendment, needs to be clarified and updated. The 
bill I am introducing today will bring clarity to this law on behalf of 
victims of terrorism and reaffirm their right to sue and collect 
damages from state sponsors of terrorism.
  There are several reasons why the law needs to be improved. First, 
the courts decided in 2004 in Cicippio-Puleo v. Islamic Republic of 
Iran that, contrary to the intent of the Flatow amendment, there would 
be no Federal private right of action against foreign governments. The 
ruling stated that there could only be legal action against individual 
officials and employees of that government. Second, current law permits 
judgment holders to only seize assets over which a terrorist state has 
day-to-day managerial control, thereby allowing terrorist states to 
hide their assets from the victims who have successful judgments 
against them. Third, state sponsors of terrorism, such as Libya, which 
is still responsible for terrorist acts it committed in the past, have 
consistently abused the appeals process to delay litigation 
proceedings.
  My new legislation will address these issues and improve the ability 
of victims to hold state sponsors of terrorism accountable. First, it 
will update the Flatow amendment to improve its enforcement by 
reaffirming the right of private citizens to sue state sponsors of 
terrorism. Second, it will allow for the seizure of hidden commercial 
assets belonging to the terrorist state so that the victims of 
terrorism can be justly compensated. Third, it will limit the number of 
appeals that the terrorist state can pursue in U.S. courts. In 
addition, my legislation will provide foreign nationals working for the 
U.S. Government, if they are victims of a terrorist attack during their 
official duties, to be covered by these same provisions.
  While nothing can bring back innocent lives lost to terrorism, the 
state sponsors of these horrific acts must be made to pay for their 
crimes. We are united in our belief that state-sponsored terrorism is 
wrong and that the perpetrators of terrorism must be brought to 
justice. This legislation will also strengthen our national security by 
combating the desire and ability of foreign nations to both finance and 
support terrorism. Most importantly, it will empower those innocent 
victims who have suffered from terrorism to seek justice through the 
rule of American law.
  I urge my colleagues on both sides of the aisle to support justice 
for victims of state sponsored terrorism by supporting this important 
bill. I ask unanimous consent that the text of the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1944

       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 Victims of State 
     Sponsored Terrorism Act''.

     SEC. 2. TERRORISM EXCEPTION TO IMMUNITY.

       (a) In General.--Chapter 97 of title 28, United States 
     Code, is amended by inserting after section 1605 the 
     following:

     ``Sec. 1605A. Terrorism exception to the jurisdictional 
       immunity of a foreign state

       ``(a) In General.--
       ``(1) No immunity.--A foreign state shall not be immune 
     from the jurisdiction of courts of the United States or of 
     the States in any case not otherwise covered by this chapter 
     in which money damages are sought against a foreign state for 
     personal injury or death that was caused by an act of 
     torture, extrajudicial killing, aircraft sabotage, hostage 
     taking, or the provision of material support or resources (as 
     defined in section 2339A of title 18) for such an act if such 
     act or provision of material support is engaged in by an 
     official, employee, or agent of such foreign state while 
     acting within the scope of his or her office, employment, or 
     agency.
       ``(2) Claim heard.--The court shall hear a claim under this 
     section if--
       ``(A) the foreign state was 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) at the time 
     the act occurred, unless later designated as a result of such 
     act;
       ``(B) the claimant or the victim was--
       ``(i) a national of the United States (as that term is 
     defined in section 101(a)(22) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(22));
       ``(ii) a member of the Armed Forces of the United States 
     (as that term is defined in section 976 of title 10); or

[[Page S10794]]

       ``(iii) otherwise an employee of the government of the 
     United States or one of its contractors acting within the 
     scope of their employment when the act upon which the claim 
     is based occurred; or
       ``(C) where the act occurred in the foreign state against 
     which the claim has been brought, the claimant has afforded 
     the foreign state a reasonable opportunity to arbitrate the 
     claim in accordance with the accepted international rules of 
     arbitration.
       ``(b) Definition.--For purposes of this section--
       ``(1) the terms `torture' and `extrajudicial killing' have 
     the meaning given those terms in section 3 of the Torture 
     Victim Protection Act of 1991 (28 U.S.C. 1350 note);
       ``(2) the term `hostage taking' has the meaning given that 
     term in Article 1 of the International Convention Against the 
     Taking of Hostages; and
       ``(3) the term `aircraft sabotage' has the meaning given 
     that term in Article 1 of the Convention for the Suppression 
     of Unlawful Acts Against the Safety of Civil Aviation.
       ``(c) Time Limit.--An action may be brought under this 
     section if the action is commenced not later than the latter 
     of--
       ``(1) 10 years after April 24, 1996; or
       ``(2) 10 years from the date on which the cause of action 
     arose.
       ``(d) Private Right of Action.--A private cause of action 
     may be brought against a foreign state designated under 
     section 6(j) of the Export Administration Act of 1979 (50 
     U.S.C. 2405(j)), and any official, employee, or agent of said 
     foreign state while acting within the scope of his or her 
     office, employment, or agency which shall be liable to a 
     national of the United States (as that term is defined in 
     section 101(a)(22) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(22)), a member of the Armed Forces of the 
     United States (as that term is defined in section 976 of 
     title 10), or an employee of the government of the United 
     States or one of its contractors acting within the scope of 
     their employment or the legal representative of such a person 
     for personal injury or death caused by acts of that foreign 
     state or its official, employee, or agent for which the 
     courts of the United States may maintain jurisdiction under 
     this section for money damages which may include economic 
     damages, solatium, pain, and suffering, and punitive damages 
     if the acts were among those described in this section. A 
     foreign state shall be vicariously liable for the actions of 
     its officials, employees, or agents.
       ``(e) Additional Damages.--After an action has been brought 
     under subsection (d), actions may also be brought for 
     reasonably foreseeable property loss, whether insured or 
     uninsured, third party liability, and life and property 
     insurance policy loss claims.
       ``(f) Special Masters.--
       ``(1) In general.--The Courts of the United States may from 
     time to time appoint special masters to hear damage claims 
     brought under this section.
       ``(2) Transfer of funds.--The Attorney General shall 
     transfer, from funds available for the program under sections 
     1404C of the Victims Crime Act of 1984 (42 U.S.C. 10603c) to 
     the Administrator of the United States District Court in 
     which any case is pending which has been brought pursuant to 
     section 1605(a)(7) such funds as may be required to carry out 
     the Orders of that United States District Court appointing 
     Special Masters in any case under this section. Any amount 
     paid in compensation to any such Special Master shall 
     constitute an item of court costs.
       ``(g) Appeal.--In an action brought under this section, 
     appeals from orders not conclusively ending the litigation 
     may only be taken pursuant to section 1292(b) of this title.
       ``(h) Property Disposition.--
       ``(1) In general.--In every action filed in a United States 
     district court in which jurisdiction is alleged under this 
     section, the filing of a notice of pending action pursuant to 
     this section, to which is attached a copy of the complaint 
     filed in the action, shall have the effect of establishing a 
     lien of lis pendens upon any real property or tangible 
     personal property located within that judicial district that 
     is titled in the name of any defendant, or titled in the name 
     of any entity controlled by any such defendant if such notice 
     contains a statement listing those controlled entities.
       ``(2) Notice.--A notice of pending action pursuant to this 
     section shall be filed by the clerk of the district court in 
     the same manner as any pending action and shall be indexed by 
     listing as defendants all named defendants and all entities 
     listed as controlled by any defendant.
       ``(3) Enforceability.--Liens established by reason of this 
     subsection shall be enforceable as provided in chapter 111 of 
     this title.''.
       (b) Amendment to Chapter Analysis.--The chapter analysis 
     for chapter 97 of title 28, United States Code, is amended by 
     inserting after the item for section 1605 the following:

``1605A. Terrorism exception to the jurisdictional immunity of a 
              foreign state.''.

     SEC. 3. CONFORMING AMENDMENTS.

       (a) Property.--Section 1610 of title 28, United States 
     Code, is amended by adding at the end the following:
       ``(g) Property in Certain Actions.--
       ``(1) In general.--The property of a foreign state, or 
     agency or instrumentality of a foreign state, against which a 
     judgment is entered under this section, including property 
     that is a separate juridical entity, is subject to execution 
     upon that judgment as provided in this section, regardless 
     of--
       ``(A) the level of economic control over the property by 
     the government of the foreign state;
       ``(B) whether the profits of the property go to that 
     government;
       ``(C) the degree to which officials of that government 
     manage the property or otherwise control its daily affairs;
       ``(D) whether that government is the sole beneficiary in 
     interest of the property; or
       ``(E) whether establishing the property as a separate 
     entity would entitle the foreign state to benefits in United 
     States courts while avoiding its obligations.
       ``(2) United states sovereign immunity inapplicable.--Any 
     property of a foreign state, or agency or instrumentality of 
     a foreign state, to which paragraph (1) applies shall not be 
     immune from execution upon a judgment entered under this 
     section because the property is regulated by the United 
     States Government by reason of action taken against that 
     foreign state under the Trading With the Enemy Act or the 
     International Emergency Economic Powers Act.''.
       (b) Victims of Crime Act.--Section 1404C(a)(3) of the 
     Victims of Crime Act of 1984 (42 U.S.C. 10603c(a)(3)) is 
     amended by striking ``December 21, 1988, with respect to 
     which an investigation or'' and inserting ``October 23, 1983, 
     with respect to which an investigation or civil or 
     criminal''.
       (c) General Exception.--Section 1605 of title 28, United 
     States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (5)(B), by inserting ``or'' after the 
     semicolon;
       (B) in paragraph (6)(D), by striking ``; or'' and inserting 
     a period; and
       (C) by striking paragraph (7); and
       (2) by striking subsections (e) and (f).

     SEC. 4. APPLICATION TO PENDING CASES.

       (a) In General.--The amendments made by this Act shall 
     apply to any claim arising under section 1605A or 1605(g) of 
     title 28, United States Code, as added by this Act.
       (b) Prior Actions.--Any judgment or action brought under 
     section 1605(a)(7) of title 28, United States Code, or 
     section 101(c) of Public Law 104-208 after the effective date 
     of such provisions relying on either of these provisions as 
     creating a cause of action, which has been adversely affected 
     on the grounds that either or both of these provisions fail 
     to create a cause of action opposable against the state, and 
     which is still before the courts in any form, including 
     appeal or motion under Federal Rule of Civil Procedure 60(b), 
     shall, on motion made to the Federal District Court where the 
     judgment or action was initially entered, be given effect as 
     if it had originally been filed pursuant to section 1605A(d) 
     of title 28, United States Code. The defenses of res 
     judicata, collateral estoppel and limitation period are 
     waived in any re-filed action described in this paragraph and 
     based on the such claim. Any such motion or re-filing must be 
     made not later than 60 days after enactment of this Act.
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