[Federal Register Volume 81, Number 135 (Thursday, July 14, 2016)]
[Notices]
[Pages 45535-45539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16672]


-----------------------------------------------------------------------

DEPARTMENT OF JUSTICE


Justice for United States Victims of State Sponsored Terrorism 
Act

AGENCY: Department of Justice.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Justice for United States Victims of State Sponsored 
Terrorism Act (``USVSST Act'' or ``Act''), part of the Consolidated 
Appropriations Act of 2016, establishes a fund, overseen by a Special 
Master, to provide compensation to certain eligible individuals who 
were injured in acts of state sponsored terrorism. The fund will award 
payment to victims of acts of international terrorism based on final 
judgments obtained in U.S. district courts against a state sponsor of 
terrorism, as well as to hostages held at the United States Embassy in 
Tehran,

[[Page 45536]]

Iran, during the period beginning November 4, 1979, and ending January 
20, 1981, and their spouses and children. This Notice describes the 
eligibility requirements and provides procedures for the submission and 
consideration of applications to the fund.

DATES: This Notice is effective July 14, 2016.

FOR FURTHER INFORMATION CONTACT: The Special Master, United States 
Victims of State Sponsored Terrorism Fund, or the Chief, Program 
Management and Training Unit, Asset Forfeiture and Money Laundering 
Section, Criminal Division, Department of Justice, 950 Pennsylvania 
Avenue NW., Washington, DC 20530-0001, telephone (202) 353-2046.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to Division O, section 404 of the Consolidated 
Appropriations Act of 2016, Public Law 114-113 (``Justice for United 
States Victims of State Sponsored Terrorism Act''), codified at 42 
U.S.C. 10609, the U.S. Victims of State Sponsored Terrorism Fund 
(``Fund'') was established to provide compensation to individuals who 
were injured as a result of an international act of terrorism by a 
state sponsor of terrorism. Under 42 U.S.C. 10609(c), an eligible 
claimant is (1) a U.S. person, as defined in 42 U.S.C. 10609(j)(8), 
with a final judgment issued by a U.S. district court under state or 
federal law against a state sponsor of terrorism and arising from an 
act of international terrorism, for which the foreign state was found 
not immune under provisions of the Foreign Sovereign Immunities Act, 
codified at 28 U.S.C. 1605A or 1605(a)(7) (as such section was in 
effect on January 27, 2008); (2) a U.S. person, as defined in 42 U.S.C. 
10609(j)(8), who was taken and held hostage from the United States 
Embassy in Tehran, Iran, during the period beginning November 4, 1979, 
and ending January 20, 1981, or the spouse and child of that U.S. 
person at that time, and who is also identified as a member of the 
proposed class in case number 1:00-CV-03110 (EGS) of the United States 
District Court for the District of Columbia; or (3) the personal 
representative of a deceased individual in either of those two 
categories.
    Following his appointment by the Attorney General, Kenneth Feinberg 
entered on duty as the Special Master to administer the Fund on May 17, 
2016. The Special Master will consider applications, make 
determinations of eligibility, and calculate payment amounts in 
accordance with the Act. The determinations of the Special Master are 
final and not reviewable by any court.
    Claims based on eligibility for those persons with final judgments 
dated before July 14, 2016 and those who qualify as an Iran hostage, or 
spouse or child thereof, must be filed on or before October 12, 2016. 
Claims based on eligibility for those persons who obtain final 
judgments on or after July 14, 2016 must be filed within 90 days of the 
date of obtaining those judgments. Payments from the Fund are made by 
the U.S. government, which in turn obtains the right of subrogation to 
each award. Pursuant to 42 U.S.C. 10609(d)(2), the Special Master shall 
authorize all initial payments to satisfy eligible claims not later 
than one year after the date of the enactment of the Act.
    The Special Master is issuing this Notice pursuant to section 
10609(b)(2) of the Act, which provides that the Special Master shall 
publish a notice specifying the procedures necessary for United States 
persons to apply and establish eligibility for payment, including 
procedures by which eligible United States persons may apply by and 
through their attorney. The notice is procedural in nature, specifying 
how to apply for compensation and merely restating the eligibility 
requirements in the Act; it does not create new rights or impose 
obligations independent of the statute. It also notes certain instances 
where the Special Master has discretion about implementing the 
procedures.
    This Notice does not provide a complete overview of the Fund. More 
detailed information regarding the Fund, including answers to 
frequently asked questions (``FAQs''), is available on the U.S. Victims 
of State Sponsored Terrorism Fund Web site at www.usvsst.com. 
Furthermore, the Special Master cannot anticipate all of the issues 
that may arise over the lifetime of the Fund and that he may have to 
resolve in the course of making determinations on individual claims.

Administrative Certifications

    Pursuant to section 404(b)(2)(A) of Division O of Public Law 114-
113, the Consolidated Appropriations Act of 2016, this Notice is exempt 
from the notice and comment requirements of 5 U.S.C. 553, and it is 
effective upon issuance. Although not required, in an effort to provide 
transparency, the Special Master posted a discussion draft of 
procedures and FAQs on the www.usvsst.com Web site and invited input 
from the public from June 17, 2016 through June 29, 2016. Further, on 
June 24, 2016 and June 29, 2016, the Special Master hosted public 
conference calls to provide potential claimants, their lawyers, and any 
other parties with the opportunity to ask questions concerning the Act, 
application procedures, and FAQs. The Special Master also met with 
victims' advocates. The Special Master considered all the input in 
drafting the Notice and will accept public input made following 
publication if any adjustments or clarifications are necessary and 
appropriate.
    Because the Special Master is not required to publish a general 
notice of proposed rulemaking, this Notice is not subject to the 
provisions of the Regulatory Flexibility Act, as provided in 5 U.S.C. 
601(2) and 604(a). This Notice meets the applicable standards set forth 
in sections 3(a) and 3(b)(2) of Executive Order 12988, ``Civil Justice 
Reform.'' This Notice has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review'' section 1(b), 
The Principles of Regulation, and in accordance with Executive Order 
13563, ``Improving Regulation and Regulatory Review'' section 1, 
General Principles of Regulation. The Special Master has determined 
that this Notice is not a ``significant regulatory action'' under 
Executive Order 12866, Regulatory Planning and Review, section 3(f), 
and accordingly this Notice has not been reviewed by the Office of 
Management and Budget.
    This Notice, which sets forth procedures for submission and 
processing of claims under the Fund, pertains to matters of agency 
practice and procedure and does not substantially affect the rights or 
obligations of non-agency parties. Accordingly, it is not a ``rule'' as 
that term is used by the Congressional Review Act, 5 U.S.C. 804(3)(C), 
and the reporting requirement of 5 U.S.C. 801 does not apply.

Paperwork Reduction Act of 1995

    This Notice implements 42 U.S.C. 10609, which established the Fund. 
In order to evaluate claims and provide payment on eligible claims, the 
Special Master must collect certain information from (1) a U.S. person, 
as defined in 42 U.S.C. 10609(j)(8), with a final judgment issued by a 
U.S. district court under state or federal law against a state sponsor 
of terrorism and arising from an act of international terrorism, for 
which the foreign state was found not immune under provisions of the 
Foreign Sovereign Immunities Act, codified at 28 U.S.C. 1605A or 
1605(a)(7) (as such section was in effect on January 27, 2008); (2) a 
U.S. person, as defined in 42 U.S.C. 10609(j)(8), who was taken

[[Page 45537]]

and held hostage from the United States Embassy in Tehran, Iran, during 
the period beginning November 4, 1979, and ending January 20, 1981, or 
the spouse and child of that U.S. person at that time, and who is also 
identified as a member of the proposed class in case number 1:00-CV-
03110 (EGS) of the United States District Court for the District of 
Columbia; or (3) the personal representative of a deceased individual 
in either of those two categories.
    Accordingly, the Department of Justice, Criminal Division, has 
submitted an information collection request to the Office of Management 
and Budget for review and clearance in accordance with the emergency 
review procedures of the Paperwork Reduction Act of 1995.

Privacy Act of 1974

    Elsewhere in the Federal Register, the Department of Justice, 
Criminal Division, has published a notice of a new Privacy Act system 
of records entitled ``U.S. Victims of State Sponsored Terrorism Fund 
(USVSSTF) File System'', JUSTICE/CRM-029. By law, a notice addressing 
certain administrative matters for the Fund was to be issued within the 
60-day period after the Special Master's appointment as established by 
Congress. In compliance with that time period, the Privacy Act system 
of records notice published concurrently in the Federal Register will 
become effective upon publication, subject to a 30-day comment period 
for the routine uses claimed in the notice. In the interim, disclosures 
necessary to process applications are being made, and will be made, 
only with the prior written consent of applicants or as otherwise 
authorized under 5 U.S.C. 552a(b).

Procedures for Applying for Payment From the United States Victims of 
State Sponsored Terrorism Fund

Part I. Applicant Information

    Application forms will be available online at www.usvsst.com; by 
sending a request in writing to the U.S. Victims of State Sponsored 
Terrorism Fund, c/o GCG, P.O. Box 10229, Dublin, OH 43017-5899; by 
email to [email protected]; by calling (855) 720-6966; or by calling 
collect at +1 (614) 553-1013 if outside the United States.
    Each applicant must submit his or her own application and provide 
the following information:
    1. The applicant's name, address, telephone number, electronic mail 
address, and, if available, Social Security Number or Tax 
Identification Number and facsimile number.
    2. If the applicant is represented by counsel, name(s), 
address(es), telephone number(s), electronic mail address(es), 
facsimile number(s) of counsel, and documentation of counsel's 
authority to represent the applicant.
    3. If the applicant is the estate of a deceased individual, the 
name, address, telephone number, electronic mail address, and facsimile 
number, if available, for the Personal Representative of the decedent.
    The Special Master will not publish the names of the individuals 
who have filed for compensation under the Fund and the names of the 
decedents for whom compensation is sought under the Fund.

Part II. Submission of the Application

    Applications may be submitted online at www.usvsst.com; by mail to 
the U.S. Victims of State Sponsored Terrorism Fund, c/o GCG, P.O. Box 
10299, Dublin, OH 43017-5899; by overnight mail to the U.S. Victims of 
State Sponsored Terrorism Fund, c/o GCG, 5151 Blazer Parkway, Suite A, 
Dublin, OH 43017; by email at [email protected]; or toll-free by 
facsimile for domestic callers at (855) 409-7130 and for international 
callers at (614) 553-1426. If an applicant is represented by counsel, 
his or her application may be submitted through counsel, and counsel 
must submit a separate application on behalf of each represented 
individual. Only one application may be submitted for each claim.

Part III. General Eligibility

    The applicant has the burden of establishing eligibility for 
payment under the Act. The statutory definitions at 42 U.S.C. 10609(j) 
are fully incorporated herein.
    The Act requires that in order to demonstrate eligibility for 
payment, an applicant must:
    1. Be a U.S. person who holds a final judgment issued by a United 
States district court under State or Federal law against a state 
sponsor of terrorism, awarding the applicant compensatory damages on a 
claim(s) brought by the applicant arising from acts of international 
terrorism for which the foreign state, or instrumentality of the 
foreign state, was found not immune from the jurisdiction of the courts 
of the United States under section 1605A or section 1605(a)(7) (as such 
section was in effect on January 27, 2008) of title 28, United States 
Code; or
    2. Be a U.S. person who was taken and held hostage from the United 
States Embassy in Tehran, Iran, during the period beginning November 4, 
1979, and ending January 20, 1981, if such person is identified as a 
member of the proposed class in case number 1:00-CV-03110 (EGS) of the 
United States District Court for the District of Columbia; or
    3. Be the spouse or child of a former hostage described in Part 
III.2 and identified as a member of the proposed class in case number 
1:00-CV-03110 (EGS) of the United States District Court for the 
District of Columbia; or
    4. Be the Personal Representative of deceased individual(s) 
described in Part III.1 to Part III.3.
    In no event shall an individual who is criminally culpable for an 
act of international terrorism receive any compensation from the Fund, 
either directly or indirectly on behalf of a victim. See 42 U.S.C. 
10609(h).

Part IV. Supporting Documentation

    An applicant must submit the following supporting documents, as 
applicable. Any requests for waiver of a documentation requirement or 
an extension of time in which to submit a particular document must be 
submitted to the Special Master in writing at least 20 business days 
prior to the application deadline set forth in Part VIII below. 
Decisions to waive a documentation requirement or to extend the time to 
submit a particular document are wholly within the discretion of the 
Special Master. Failure to submit all required documentation by the 
application deadline may result in delay of the adjudication of or 
denial of the application.
    1. An applicant who seeks to establish eligibility for payment on 
the basis of a final judgment described in Part III.1 above must 
submit:
    a. A copy of the final judgment; and
    b. A list identifying any immediate family member(s) of the 
applicant who is/are also identified in the final judgment described in 
Part III.1 above.
    2. An applicant who seeks to establish eligibility for payment on 
the basis described in Part III.2 above must submit:
    a. If seeking payment as a person who was held hostage in Tehran, 
Iran, during the period beginning November 4, 1979, and ending January 
20, 1981, verification of the date on which he or she was taken hostage 
from the United States Embassy in Tehran, Iran, and the date on which 
he or she was released, as well as verification that he or she is a 
member of the proposed class in case number 1:00-CV-03110 (EGS) of the 
United States District Court for the District of Columbia.
    b. If seeking payment as the spouse of a person who was held 
hostage in Tehran, Iran, during the period

[[Page 45538]]

beginning November 4, 1979, and ending January 20, 1981, a copy of a 
marriage certificate showing the date of marriage and an affirmation 
that the marriage continued through January 20, 1981, as well as 
verification that he or she is a member of the proposed class in case 
number 1:00-CV-03110 (EGS) of the United States District Court for the 
District of Columbia.
    c. If seeking payment as the child of a person who was held hostage 
in Tehran, Iran, during the period beginning November 4, 1979, and 
ending January 20, 1981, a copy of a birth certificate or adoption 
decree showing a date of birth or adoption prior to January 20, 1981, 
as well as verification that he or she is a member of the proposed 
class in case number 1:00-CV-03110 (EGS) of the United States District 
Court for the District of Columbia.
    3. Personal Representatives must show sufficient evidence of their 
authority to represent the estate of a decedent by submitting copies of 
relevant legal documentation, such as court orders; letters 
testamentary or similar documentation; proof of the purported Personal 
Representative's relationship to the decedent; and copies of wills, 
trusts, or other testamentary documents.
    4. Any other information that the Special Master deems necessary to 
determine the applicant's eligibility.

Part V. Collateral Sources Information

    The Act requires that an applicant identify compensation from any 
source other than this Fund that the applicant, or the applicant's 
beneficiaries, has/have received or is/are entitled or scheduled to 
receive as a result of the act of international terrorism that gave 
rise to his or her final judgment. The applicant shall provide 
information and documentation regarding the amount, nature, and source 
of any payment received or entitled or scheduled to receive, and must 
update that information throughout the period of the Fund.

Part VI. Special Procedures for Judgment Creditors in Peterson V. Iran 
and for Settling Judgment Creditors in In Re 650 Fifth Avenue & Related 
Properties

    1. Election to Participate in Fund. By September 12, 2016, a United 
States person who is a judgment creditor in the proceedings captioned 
Peterson v. Islamic Republic of Iran, No. 10 Civ. 4518 (S.D.N.Y.), or a 
Settling Judgment Creditor as identified in the order dated May 27, 
2014, in the proceedings captioned In re 650 Fifth Avenue & Related 
Properties, No. 08 Civ. 10934 (S.D.N.Y. filed Dec. 17, 2008), shall 
notify the Special Master in writing of his or her election to 
participate in the Fund, and shall acknowledge in writing that, by so 
electing, he or she irrevocably assigns to the Fund all rights, title, 
and interest in such person's claims to the assets at issue in the 
identified proceedings.
    2. Applications for Conditional Payment. A United States person who 
is a judgment creditor or a Settling Judgment Creditor in the 
proceedings identified in Part VI.1 who does not elect to participate 
in the Fund may, notwithstanding such failure to elect, submit an 
application for conditional payment from the Fund, subject to the 
limitations and exceptions set forth in the Act and the application 
requirements set forth in this Notice.

Part VII. Procedures for Personal Representatives

    1. In general. For any deceased applicant, the Personal 
Representative shall be:
    a. An individual appointed by a court of competent jurisdiction as 
the Personal Representative of the decedent or as the executor or 
administrator of the deceased applicant's will or estate; or
    b. In the event that no Personal Representative or executor or 
administrator has been appointed by any court of competent 
jurisdiction, and such issue is not the subject of pending litigation 
or other dispute, the Personal Representative for purposes of 
compensation by the Fund is the person named by the deceased applicant 
in his or her will as the executor or administrator of the deceased 
applicant's estate; or
    c. In the event no will exists, the Personal Representative for 
purposes of compensation by the Fund is the first person in the line of 
succession established by the laws of the deceased applicant's domicile 
governing intestacy or, in limited circumstances, the Special Master 
may, at his discretion, determine the Personal Representative for 
purposes of compensation by the Fund.
    2. Notice to beneficiaries.
    a. Any purported Personal Representative must, before filing a 
claim, provide written notice of the claim to the immediate family of 
the decedent; to the executor, administrator, and beneficiaries of the 
decedent's will; and to any other persons who may reasonably be 
expected to assert an interest in an award or to have a cause of action 
to recover damages relating to the wrongful death of the decedent.
    b. Personal delivery or transmission by certified mail, return 
receipt requested, shall be deemed sufficient notice under this Part. 
The purported Personal Representative must certify that such notice (or 
other notice that the Special Master deems appropriate) has been given.
    3. Objections to Personal Representatives. Objections to the 
authority of an individual to file as the Personal Representative of a 
decedent may be filed with the Special Master by parties who assert a 
financial interest in the award up to 30 days following receipt of 
notice by the Personal Representative under Part VII.2. If timely 
filed, such objections shall be treated as evidence of a ``dispute'' 
under section (4) of this Part.
    4. Disputes as to Identity. The Special Master will not, and shall 
not be required to, arbitrate, litigate, or otherwise resolve any 
dispute as to the identity of the Personal Representative. In the event 
of a dispute over the appropriate Personal Representative, the Special 
Master may suspend adjudication of the claim or, if sufficient 
information is provided, calculate the appropriate award and authorize 
payment, but withhold any payment until the dispute is resolved either 
by agreement of the disputing parties or by a court of competent 
jurisdiction. Alternatively, the disputing parties may agree in writing 
to the identity of a Personal Representative to act on their behalf, 
who may seek and accept payment from the Fund while the disputing 
parties work to settle their dispute.
    5. Foreign Claims. In the case of claims brought by a foreign 
citizen on behalf of a deceased applicant, the Special Master may alter 
the requirements for documentation set forth in Part IV.3 and Part VII.

Part VIII. Application Deadlines

    1. Applications based on a judgment described in Part III.1 above 
that was a final judgment before the date of publication of this Notice 
and applications based on the statement described in Part III.2 to Part 
III.4 above must be submitted by October 12, 2016.
    2. Applications based on a judgment described in Part III.1 that 
was final on or after the date of publication of this Notice must be 
submitted not later than 90 days after the date of obtaining a final 
judgment.
    3. For good cause shown, the Special Master may grant a reasonable 
extension of a deadline under this Part. Any request for such an 
extension must be made in writing and must describe the

[[Page 45539]]

circumstances that the applicant believes constitute good cause.
    4. The Special Master shall determine the timeliness of all claims.

Part IX. Award of Compensation to Informers

    If an applicant is seeking additional compensation as an informer, 
as described in 42 U.S.C. 10609(g)(2)(a), the applicant must identify, 
and notify the Attorney General in writing by contacting the Chief, 
Asset Forfeiture and Money Laundering Section, Criminal Division, 
Department of Justice, 950 Pennsylvania Avenue NW., Washington, DC 
20530-0001, of funds or property of a state sponsor of terrorism, or 
held by a third party on behalf of or subject to the control of that 
state sponsor of terrorism. See 42 U.S.C. 10609(g)(1).

Part X. Request for a Hearing

    An applicant may request a hearing regarding the Special Master's 
denial of the claim in whole or in part no later than 30 days after 
receipt of the Special Master's written decision.
    1. Hearings shall be before the Special Master or his designee. All 
hearings will be closed to the public.
    2. Based on the circumstances of the claim, the Special Master or 
his designee shall determine the time, location, duration, and 
procedures for the hearing.
    3. The Special Master shall notify the applicant in writing of his 
final decision affirming or amending the original decision within 90 
days of the hearing, but need not create or provide any written record 
of the deliberations that resulted in that determination. There shall 
be no further review or appeal of the Special Master's determination. 
See 42 U.S.C. 10609(b)(3)(B).

Part XI. Signatures and Certifications

    An application will be deemed submitted when it is submitted online 
at www.usvsst.com, emailed to [email protected], faxed toll-free for 
domestic callers at (855) 409-7130 and for international callers at 
(614) 553-1426, or if mailed or overnight mailed, by the postmark date. 
By submitting the application, the applicant (or if submitted through 
counsel, both applicant and counsel) acknowledges and certifies as to 
each of the following:
    1. Veracity of Application. The applicant certifies, under oath, 
subject to penalty of perjury or in a manner that meets the 
requirements of 28 U.S.C. 1746, that the information provided in the 
application and any documents submitted in support of the claim are 
true and accurate to the best of the applicant's knowledge, and the 
applicant agrees that any payment made by the Fund is expressly 
conditioned upon the truthfulness and accuracy of the information and 
documentation submitted in support of the claim. Where an applicant is 
represented by a third party, such as an applicant's legal guardian, 
the Personal Representative of the deceased applicant's estate, or 
other personal legally authorized to act for the applicant, these 
persons must have authority to certify on behalf of the applicant.
    2. Potential Criminal Penalties. The applicant understands that 
false statements or claims made in connection with the application may 
result in fines, imprisonment and/or any other remedy available by law 
to the Federal Government, including as provided in 18 U.S.C. 1001, and 
that claims that appear to be potentially fraudulent or to contain 
false information will be forwarded to federal, state, and local law 
enforcement authorities for possible investigation and prosecution.
    3. Limitation on Attorneys' Fees. If an applicant is represented by 
counsel, no attorney shall charge, receive, or collect, and the Special 
Master will not approve, any payment of fees and costs that in the 
aggregate exceeds 25 percent of any payment made under the Act on such 
claim.
    4. Subrogation of Rights. If the applicant receives payment under 
the Act, the applicant agrees and accepts that the United States shall 
be subrogated to the rights of the applicant (and any of his heirs, 
successors, or assigns) to the extent and in the amount of such 
payment, but that, to the extent amounts of damages remain unpaid and 
outstanding to the applicant following any payments made under this 
Act, each applicant shall retain that applicant's creditor rights in 
any unpaid or outstanding amounts of the judgment, including any 
prejudgment or post-judgment interest, or punitive damages, awarded by 
a United States district court pursuant to a judgment.
    5. Conditional Payment. If the applicant is seeking a conditional 
payment pursuant to Part VI above, the applicant understands that, 
notwithstanding the applicant's eligibility for payment and the 
deadline for initial payments set forth in the Act, the Special Master 
shall allocate but withhold payment to such applicant until such time 
as an adverse final judgment is entered in both of the proceedings 
identified in Part VI.

    Dated: July 8, 2016.
Kenneth Feinberg,
Special Master.
[FR Doc. 2016-16672 Filed 7-13-16; 8:45 am]
BILLING CODE 4410-14-P