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106th Congress                                            Rept. 106-733
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================



 
                  JUSTICE FOR VICTIMS OF TERRORISM ACT

                                _______
                                

 July 18, 2000.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hyde, from the Committee on the Judiciary, submitted the following

                          SUPPLEMENTAL REPORT

                        [To accompany H.R. 3485]

    Pursuant to the provisions of rule XIII, clause 3(a)(2), 
the Committee on the Judiciary, to whom was referred the bill 
(H.R. 3485), modifying the enforcement of certain anti-
terrorism judgments, and for other purposes, herein files a 
supplemental report on the bill for the correction of a 
technical error in its previous report on the bill.
    House Report 106-733 inadvertently contained language which 
was not considered by the committee. This supplemental report 
merely strikes section 2 of the original report 106-733 
relating to paygo adjustment.
    For an explanation of the bill, and for the additional 
views submitted therewith, please refer to House Report 106-
733.
    The committee having considered the bill reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

    The amendment is as follows:

SECTION 1. ENFORCEMENT OF CERTAIN ANTI-TERRORISM JUDGMENTS.

    (a) Short Title.--This Act may be cited as the ``Justice for 
Victims of Terrorism Act''.
    (b) Definition.--
            (1) In general.--Section 1603(b) of title 28, United States 
        Code, is amended--
                    (A) in paragraph (3) by striking the period and 
                inserting a semicolon and ``and'';
                    (B) by redesignating paragraphs (1), (2), and (3) 
                as subparagraphs (A), (B), and (C), respectively;
                    (C) by striking ``(b)'' through ``entity--'' and 
                inserting the following:
    ``(b) An `agency or instrumentality of a foreign state' means--
            ``(1) any entity--''; and
                    (D) by adding at the end the following:
            ``(2) for purposes of sections 1605(a)(7) and 1610 (a)(7) 
        and (f), any entity as defined under subparagraphs (A) and (B) 
        of paragraph (1), and subparagraph (C) of paragraph (1) shall 
        not apply.''.
            (2) Technical and conforming amendment.--Section 1391(f)(3) 
        of title 28, United States Code, is amended by striking 
        ``1603(b)'' and inserting ``1603(b)(1)''.
    (c) Enforcement of Judgments.--Section 1610(f) of title 28, United 
States Code, is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A) by striking ``(including 
                any agency or instrumentality or such state)'' and 
                inserting ``(including any agency or instrumentality of 
                such state)''; and
                    (B) by adding at the end the following:
    ``(C) Notwithstanding any other provision of law, moneys due from 
or payable by the United States (including any agency, subdivision or 
instrumentality thereof) to any state against which a judgment is 
pending under section 1605(a)(7) shall be subject to attachment and 
execution, in like manner and to the same extent as if the United 
States were a private person.''; and
            (2) by adding at the end the following:
    ``(3)(A) Subject to subparagraph (B), upon determining on an asset-
by-asset basis that a waiver is necessary in the national security 
interest, the President may waive this subsection in connection with 
(and prior to the enforcement of) any judicial order directing 
attachment in aid of execution or execution against any property 
subject to the Vienna Convention on Diplomatic Relations or the Vienna 
Convention on Consular Relations.
    ``(B) A waiver under this paragraph shall not apply to--
            ``(i) if property subject to the Vienna Convention on 
        Diplomatic Relations or the Vienna Convention on Consular 
        Relations has been used for any nondiplomatic purpose 
        (including use as rental property), the proceeds of such use; 
        or
            ``(ii) if any asset subject to the Vienna Convention on 
        Diplomatic Relations or the Vienna Convention on Consular 
        Relations is sold or otherwise transferred for value to a third 
        party, the proceeds of such sale or transfer.
    ``(C) In this paragraph, the term `property subject to the Vienna 
Convention on Diplomatic Relations or the Vienna Convention on Consular 
Relations' and the term `asset subject to the Vienna Convention on 
Diplomatic Relations or the Vienna Convention on Consular Relations' 
mean any property or asset, respectively, the attachment in aid of 
execution or execution of which would result in a violation of an 
obligation of the United States under the Vienna Convention on 
Diplomatic Relations or the Vienna Convention on Consular Relations, as 
the case may be.
    ``(4) For purposes of this subsection, all assets of any agency or 
instrumentality of a foreign state shall be treated as assets of that 
foreign state.''.
    (d) Technical and Conforming Amendment.--Section 117(d) of the 
Treasury Department Appropriations Act, 1999 (Public Law 105-277; 112 
Stat. 2681-492) is repealed.
    (e) Effective Date.--The amendments made by this section shall 
apply to any claim for which a foreign state is not immune under 
section 1605(a)(7) of title 28, United States Code, arising before, on, 
or after the date of enactment of this Act.

SEC. 2. TECHNICAL AMENDMENTS TO IMPROVE LITIGATION PROCEDURES AND 
                    REMOVE LIMITATIONS ON LIABILITY.

    (a) General Exceptions to Jurisdictional Immunity of Foreign 
State.--Section 1605 of title 28, United States Code, is amended by 
adding at the end the following:
    ``(h) If a foreign state, or its agency or instrumentality, is a 
party to an action pursuant to subsection (a)(7) and fails to furnish 
any testimony, document, or other thing upon a duly issued discovery 
order by the court in the action, such failure shall be deemed an 
admission of any fact with respect to which the discovery order 
relates. Nothing in this subsection shall supersede the limitations set 
forth in subsection (g).''.
    (b) Extent of Liability.--Section 1606 of title 28, United States 
Code, is amended by adding at the end the following: ``No Federal or 
State statutory limits shall apply to the amount of compensatory, 
actual, or punitive damages permitted to be awarded to persons under 
section 1605(a)(7) and this section.''.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

TITLE 28, UNITED STATES CODE

           *       *       *       *       *       *       *


PART IV--JURISDICTION AND VENUE

           *       *       *       *       *       *       *


CHAPTER 87--DISTRICT COURTS; VENUE

           *       *       *       *       *       *       *


Sec. 1391. Venue generally

    (a)  * * *

           *       *       *       *       *       *       *

    (f) A civil action against a foreign state as defined in 
section 1603(a) of this title may be brought--
            (1)  * * *

           *       *       *       *       *       *       *

            (3) in any judicial district in which the agency or 
        instrumentality is licensed to do business or is doing 
        business, if the action is brought against an agency or 
        instrumentality of a foreign state as defined in 
        section 1603(b)(1) of this title; or

           *       *       *       *       *       *       *


CHAPTER 97--JURISDICTIONAL IMMUNITIES OF FOREIGN STATES

           *       *       *       *       *       *       *


Sec. 1603. Definitions

    For purposes of this chapter--
    (a) * * *
    [(b) An ``agency or instrumentality of a foreign state'' 
means any entity--] (b) An ``agency or instrumentality of a 
foreign state'' means--
            (1) any entity--
                    [(1)] (A) which is a separate legal person, 
                corporate or otherwise, and
                    [(2)] (B) which is an organ of a foreign 
                state or political subdivision thereof, or a 
                majority of whose shares or other ownership 
                interest is owned by a foreign state or 
                political subdivision thereof, and
                    [(3)] (C) which is neither a citizen of a 
                State of the United States as defined in 
                section 1332(c) and (d) of this title, nor 
                created under the laws of any third country[.]; 
                and
            (2) for purposes of sections 1605(a)(7) and 1610 
        (a)(7) and (f), any entity as defined under 
        subparagraphs (A) and (B) of paragraph (1), and 
        subparagraph (C) of paragraph (1) shall not apply.

           *       *       *       *       *       *       *


Sec. 1605. General exceptions to the jurisdictional immunity of a 
                    foreign state

    (a) * * *

           *       *       *       *       *       *       *

    (h) If a foreign state, or its agency or instrumentality, 
is a party to an action pursuant to subsection (a)(7) and fails 
to furnish any testimony, document, or other thing upon a duly 
issued discovery order by the court in the action, such failure 
shall be deemed an admission of any fact with respect to which 
the discovery order relates. Nothing in this subsection shall 
supersede the limitations set forth in subsection (g).

Sec. 1606. Extent of liability

    As to any claim for relief with respect to which a foreign 
state is not entitled to immunity under section 1605 or 1607 of 
this chapter, the foreign state shall be liable in the same 
manner and to the same extent as a private individual under 
like circumstances; but a foreign state except for an agency or 
instrumentality thereof shall not be liable for punitive 
damages, except any action under section 1605(a)(7) or 1610(f); 
if, however, in any case wherein death was caused, the law of 
the place where the action or omission occurred provides, or 
has been construed to provide, for damages only punitive in 
nature, the foreign state shall be liable for actual or 
compensatory damages measured by the pecuniary injuries 
resulting from such death which were incurred by the persons 
for whose benefit the action was brought. No Federal or State 
statutory limits shall apply to the amount of compensatory, 
actual, or punitive damages permitted to be awarded to persons 
under section 1605(a)(7) and this section.

           *       *       *       *       *       *       *


Sec. 1610. Exceptions to the immunity from attachment or execution

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1)(A) Notwithstanding any other provision of law, 
including but not limited to section 208(f) of the Foreign 
Missions Act (22 U.S.C. 4308(f)), and except as provided in 
subparagraph (B), any property with respect to which financial 
transactions are prohibited or regulated pursuant to section 
5(b) of the Trading with the Enemy Act (50 U.S.C. App. 5(b)), 
section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(a)), sections 202 and 203 of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1702), or any other 
proclamation, order, regulation, or license issued pursuant 
thereto, shall be subject to execution or attachment in aid of 
execution of any judgment relating to a claim for which a 
foreign state [(including any agency or instrumentality or such 
state)] (including any agency or instrumentality of such state) 
claiming such property is not immune under section 1605(a)(7).

           *       *       *       *       *       *       *

    (C) Notwithstanding any other provision of law, moneys due 
from or payable by the United States (including any agency, 
subdivision or instrumentality thereof) to any state against 
which a judgment is pending under section 1605(a)(7) shall be 
subject to attachment and execution, in like manner and to the 
same extent as if the United States were a private person.

           *       *       *       *       *       *       *

    (3)(A) Subject to subparagraph (B), upon determining on an 
asset-by-asset basis that a waiver is necessary in the national 
security interest, the President may waive this subsection in 
connection with (and prior to the enforcement of) any judicial 
order directing attachment in aid of execution or execution 
against the premises of a foreign diplomatic mission to the 
United States, or any funds held by or in the name of such 
foreign diplomatic mission determined by the President to be 
necessary to satisfy actual operating expenses of such foreign 
diplomatic mission.
    (B) A waiver under this paragraph shall not apply to--
            (i) if the premises of a foreign diplomatic mission 
        has been used for any nondiplomatic purpose (including 
        use as rental property), the proceeds of such use; or
            (ii) if any asset of a foreign diplomatic mission 
        is sold or otherwise transferred for value to a third 
        party, the proceeds of such sale or transfer.
    (4) For purposes of this subsection, all assets of any 
agency or instrumentality of a foreign state shall be treated 
as assets of that foreign state.

           *       *       *       *       *       *       *

                              ----------                              


    SECTION 117 OF THE TREASURY DEPARTMENT APPROPRIATIONS ACT, 1999

           exception to immunity from attachment or execution

    Sec. 117. (a) * * *

           *       *       *       *       *       *       *

    [(d) Waiver.--The President may waive the requirements of 
this section in the interest of national security.]

           *       *       *       *       *       *       *


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