109th CONGRESS
2d Session
S. 3520
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 SENATE OF THE UNITED STATES
June 15, 2006
Ms. SNOWE (for herself and Mr. MENENDEZ) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
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 which arise out of the continued exclusion
of nationals of the United States from property they own that is located
in those portions of the territory of Cyprus which Turkey occupies. This
title may 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.
`(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 a citizen of the United States; and
`(B) a corporation or other legal entity which is organized under the
laws of the United States or of any State, the District of Columbia,
or the Commonwealth of Puerto Rico, if natural persons who are citizens
of the United States 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 lease owned under the laws
of Cyprus and located in those portions of the territory of Cyprus that
are occupied by Turkey.
`(7) TURKEY- The term `Turkey' means--
`(A) the Republic of Turkey;
`(B) 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 Government of Turkey, including the unincorporated association
known as the `Turkish Republic of Northern Cyprus';
`(C) any political subdivision, agency, or instrumentality of Turkey,
including the Turkish Armed Forces; 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'.
`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 to reach an agreement with respect
to the payment by Turkey of claims certified under section 806 and to continue
such negotiations until such agreement is reached.
`(b) Requirement To Receive Claims- The Commission shall receive claims,
determine the validity of 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 the President authorizes the Secretary
of State to commence the negotiations referred to in subsection (a) and
without regard to whether or not the Secretary of State commences such negotiations
if authorized.
`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 which--
`(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, under the laws of Cyprus, wholly or partially, directly or
indirectly, by nationals of the United States.
`(2) LIMITATION- The Commission shall reduce value of the fair rental
market value determined under paragraph (1) to the extent restoration
or adequate compensation for such use and occupation has been made, including
all amounts the claimant has received from any source on account of the
same loss or losses for which the claim is filed.
`(b) Rights in Property Retained- A claimant shall not be required or deemed,
either directly or indirectly, to transfer, waive, or otherwise forfeit
any right of ownership in or to the property that the claimant owns under
the laws of Cyprus as a condition of or as the result of filing a claim
under this title, 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 days after
the date of the enactment of an appropriations Act that makes available
funds for 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 the beginning and ending
dates of the period referred to in paragraph (1) in the Federal Register.
`(3) LENGTH- The period referred to in paragraph (1) may not be longer
than 24 months and shall begin on the last day of the month in which the
notice is of the period 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 the claim 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 by one or more nationals
of the United States continuously from that date until the date the claim
is filed with the Commission.
`SEC. 806. CERTIFICATION; ASSIGNED CLAIMS.
`(a) Certification of Claims-
`(1) TO THE CLAIMANT- The Commission shall certify to each claimant who
files a claim under this title--
`(A) the amount determined by the Commission to be the loss suffered
by the claimant which is covered by this title; and
`(B) if, on the date on which the certification under subparagraph (A)
is made, 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) TO THE SECRETARY OF STATE- The Commission shall certify to the Secretary
of State--
`(A) the 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 relied upon and the reasoning employed
in making the Commission's determination of the amount referred to in
subparagraph (A) and the mathematical basis referred to 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 shall 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 which, 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, and 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 be composed 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 entered into between the Governments of the United States
and Turkey.
`(c) Deduction for Administrative Expenses- The Secretary of the Treasury
shall deduct from any amounts covered into the Claims Fund an 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, in terms of United States
currency, each award made pursuant to section 804.
`(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 $5,000 or the principal amount of the
award (excluding any calculations made under any mathematical basis
certified under section 806(a)(1)(B)), 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
(including any calculations made under any mathematical basis certified
under section 807(a)(1)(B)) according to the proportions which 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 any such regulations as the Secretary
of the Treasury may prescribe.
`SEC. 810. SETTLEMENT PERIOD.
`The Commission shall complete the settlement of claims under this title
not later than 3 years after the final date for the filing of claims as
provided in section 804.
`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 described in section 804 by
this title as may be required by the Commission in carrying out its functions
under this title.
`SEC. 812. FEES FOR SERVICES.
`(1) LIMITATION- No remuneration on account of services rendered on behalf
of any claimant, in connection with any claim filed with the Commission
under this title, may exceed 10 percent of the total 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) shall be unlawful and void.
`(b) Penalty for Violation- Whoever, in the United States or elsewhere,
demands or receives, on account of services rendered to which paragraph
(1) applies, any remuneration in excess of the maximum permitted by subsection
(a), shall be fined not more than $5,000, or imprisoned not more than 12
months, or both.
`SEC. 813. APPLICATION OF OTHER PROVISIONS.
`(1) PROVISIONS- To the extent they are not inconsistent with the provisions
of this 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) shall be deemed to be a reference
to such provisions and to this title.
`(b) Applicability of Administrative Procedure- Except as otherwise provided
in this title and in the provisions of title I referred to 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. SEPARABILITY.
`If any provision of this title or the application thereof to any person
or circumstance is held invalid, the remainder of this title or the application
of such provision to other persons or circumstances shall not be affected.
`SEC. 815. AUTHORIZATION OF APPROPRIATIONS.
`(a) In General- There are authorized to be appropriated for any fiscal
year beginning on or after October 1, 2005, such sums as may be necessary
to enable the Commission and the Secretary of the Treasury to pay their
respective administrative expenses incurred in carrying out their functions
under this title.
`(b) Availability of Funds- Amounts appropriated pursuant to the authorization
of appropriations in subsection (a) may remain available until expended.'.
SEC. 3. JURISDICTION OF U.S. 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 against private persons by nationals of the
United States who own real property in Cyprus
`(1) IN GENERAL- The district courts shall have original jurisdiction
of any covered civil action brought by a national of the United States--
`(A) who holds title to any property under the laws of Cyprus that is
located in that portion of the territory of Cyprus that is occupied
by Turkey as the result of the invasion of Cyprus by Turkey on July
20, 1974; and
`(B) who has been excluded from the property by reason of such occupation.
`(2) RECOVERY- In a covered civil action, a national of the United States
may recover the fair rental value of the property that is the subject
of such action during the period of use, or occupation of, or benefit
from, such property.
`(b) Special Rules- In any covered civil action brought under this section--
`(1) process shall be deemed served if service is accomplished in any
manner provided under this title;
`(2) the district court shall not consider the doctrine of forum non conveniens
and shall refuse to hear any motion or request by any person or party
that the covered civil action be dismissed on the grounds of forum non
conveniens;
`(3) in determining whether the person or party asserting the covered
civil action has lawful title, the district court shall apply only the
laws of Cyprus;
`(4) in determining the amount of any award in the covered civil action,
the district court shall consider only evidence of the fair rental market
value of the property for the period of occupation, use, or benefit by
the person against whom the action is brought, as that value would have
been calculated in Cyprus if the plaintiff had not been excluded from
the property; and
`(5) the district court shall deduct the amount of any award paid to the
plaintiff under title VIII of the International Claims Settlement Act
of 1949, or the amount of any judgment for the plaintiff under section
5 of the American-Owned Property in Occupied Cyprus Claims Act on account
of the same use, occupation, or benefit that is the basis of the covered
civil action under this section.
`(c) Limitation of Action- Any covered civil action against a private person
under this section may not be brought later than 36 months after the last
day of the month in which the private person ceases to use, occupy, or benefit
from the property. This subsection applies in lieu of section 1658 of this
title.
`(d) Definitions- As used in this section--
`(1) the term `covered civil action' means a civil action against any
private person who for any purpose and in any way uses, occupies, or benefits
from property described in subsection (a)(1)(A) at any time during the
period of the exclusion described in subsection (a)(1)(B);
`(2) the term `Cyprus' means the Republic of Cyprus;
`(3) the term `national of the United States' means--
`(A) a natural person who is a citizen of the United States; and
`(B) a corporation or other legal entity which is organized under the
laws of the United States or of any State, the District of Columbia,
or the Commonwealth of Puerto Rico, if natural persons who are citizens
of the United States own, directly or indirectly, 50 percent or more
of the outstanding capital stock or other beneficial interest of such
corporation or entity;
`(4) the term `private person' means any natural person or legal entity
other than Turkey;
`(5) the term `property' means any real property or any right or interest
in any real property, including any lease to which a national of the United
States holds title under the laws of Cyprus; and
`(6) the term `Turkey' means--
`(A) the Republic of Turkey;
`(B) 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 Government of Turkey, including the unincorporated association
known as the `Turkish Republic of Northern Cyprus';
`(C) any political subdivision, agency, or instrumentality of the Republic
of Turkey, including the Turkish Armed Forces; 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'.'.
(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 against private persons by nationals of the United
States who own real property in Cyprus.'.
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 for civil actions against private persons brought by
nationals of the United States who own real property in Cyprus
`A covered civil action under section 1370 may be brought only in the United
States District Court for the District of Columbia and the United States
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 for civil actions against private persons brought by nationals
of the United States who own real property in Cyprus.'.
SEC. 5. ACTION AGAINST THE TURKISH GOVERNMENT.
(a) Jurisdiction of U.S. Courts- The Government of Turkey shall not be immune
from the jurisdiction of the courts of the United States or of the States
in any case in which--
(1) rights in property of a national of the United States that is occupied
by the Government of Turkey in violation of international law are in issue;
and
(2) that property or any property exchanged for such property--
(A) is present in the United States in connection with a commercial
activity carried on by the Government of Turkey in the United States;
or
(B) is owned or operated by an agency or instrumentality of the Government
of Turkey and that agency or instrumentality--
(i) is engaged in a commercial activity in the United States; or
(ii) purchases or otherwise acquires any good or service for which
the approval, authorization, or consent of the United States is required
by law, by the President, or by any department, agency, or instrumentality
of the United States Government.
(b) Applicability of and Relationship to Foreign Sovereign Immunities Act-
(1) APPLICABILITY- The provisions of chapter 97 of title 28, United States
Code, apply to a civil action brought under subsection (a) as if the action
were brought under such chapter.
(2) ASSERTION OF INDEPENDENT JURISDICTION- The jurisdiction conferred
by subsection (a) is in addition to any jurisdiction conferred by chapter
97 of title 28, United States Code.
(c) Deductions of Other Awards- In any action brought under subsection (a),
the court shall deduct from the amount of any judgment the amount of any
award paid to the plaintiff under title VIII of the International Claims
Settlement Act of 1949, or the amount of any judgment for the plaintiff
under section 1370 of title 28, United States Code, on account of the same
subject matter that is the basis of the action under this section.
(d) Definitions- In this section--
(1) the term `Government of Turkey' includes all the entities described
in subparagraphs (B), (C), and (D) of section 802(7) of the International
Claims Settlement Act of 1949;
(2) the term `agency or instrumentality of the Government of Turkey' means
any of the entities described in subparagraphs (B), (C), and (D) of section
802(7) of the International Claims Settlement Act of 1949;
(3) the term `court of the United States' has the meaning given that term
in section 451 of title 28, United States Code;
(4) the terms `national of the United States' and `property' have the
meanings given those terms in section 802 of the International Claims
Settlement Act of 1949; and
(5) the term `State' means each of the several States, the District of
Columbia, and any commonwealth territory, or possession of the United
States.
SEC. 6. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take effect on the date
of the enactment of this Act.
END
