To provide for satisfaction of judgements from frozen assets of terrorists, terrorist organizations, and State sponsors of terrorism, and for other purposes.

Summary: Justice for Victims of Terrorism Act of 2002 - Mandates satisfaction of judgements against a terrorist party from the frozen assets of terrorists, terrorist organizations, and State sponsors of terrorism. Authorizes the President to waive this requirement before the enforcement of any judicial order directing attachment in aid of execution against property subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, upon a determination on an asset-by-asset basis that waiver is necessary in the national security interest.Amends the Victims of Trafficking and Violence Protection Act of 2000 to set forth a special rule for cases against Iran with respect to distribution of foreign military sales funds inadequate to satisfy the amount of compensatory awards against Iran.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Justice for Victims of Terrorism Act 
of 2002''.

SEC. 2. SATISFACTION OF JUDGMENTS FROM FROZEN ASSETS OF TERRORISTS, 
              TERRORIST ORGANIZATIONS, AND STATE SPONSORS OF TERRORISM.

    (a) In General.--Notwithstanding any other provision of law, and 
except as provided in subsection (b), in every case in which a person 
has obtained a judgment against a terrorist party on a claim based upon 
an act of terrorism or for which a terrorist party is not immune under 
section 1605(a)(7) of title 28, United States Code, the blocked assets 
of that terrorist party (including the blocked assets of any agency or 
instrumentality of that terrorist party) shall be subject to execution 
or attachment in aid of execution in order to satisfy such judgment to 
the extent of any compensatory damages for which such terrorist party 
has been adjudged liable.
    (b) Presidential Waiver.--
            (1) In general.--Subject to paragraph (2), upon determining 
        on an asset-by-asset basis that a waiver is necessary in the 
        national security interest, the President may waive the 
        requirements of subsection (a) 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.
            (2) Exception.--A waiver under this subsection shall not 
        apply to--
                    (A) property subject to the Vienna Convention on 
                Diplomatic Relations or the Vienna Convention on 
                Consular Relations that has been used by the United 
                States for any nondiplomatic purpose (including use as 
                rental property), or the proceeds of such use; or
                    (B) the proceeds of any sale or transfer for value 
                to a third party of any asset subject to the Vienna 
                Convention on Diplomatic Relations or the Vienna 
                Convention on Consular Relations.
    (c) Special Rule for Cases Against Iran.--Section 2002 of the 
Victims of Trafficking and Violence Protection Act of 2000 (Public Law 
106-386; 114 Stat. 1542) is amended--
            (1) in subsection (a)(2)(A)(ii), by inserting after ``July 
        27, 2000'' the following: ``or before October 28, 2000,'';
            (2) in subsection (b)(2)(B)(i), by inserting after ``the 
        date of enactment of this Act'' the following: ``(less amounts 
        therein as to which the United States has an interest in 
        subrogation pursuant to subparagraph (C) arising prior to the 
        date of entry of the judgment or judgments to be satisfied in 
        whole or in part hereunder).'';
            (3) by redesignating subsections (d), (e), and (f) as 
        subsections (e), (f), and (g), respectively; and
            (4) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Distribution of Foreign Military Sales Funds Inadequate to 
Satisfy Full Amount of Compensatory Awards Against Iran.--
            ``(1)(A) In the event that the Secretary determines that 
        the amounts available to be paid under subsection (b)(2) are 
        inadequate to pay the entire amount of compensatory damages 
        awarded in judgments issued as of the date of the enactment of 
        the Justice for Victims of Terrorism Act of 2002 in cases 
        identified in subsection (a)(2)(A), the Secretary shall, not 
        later than 60 days after such date, make payment from the 
        account specified in subsection (b)(2) to each party to which 
        such judgment has been issued a share of the amounts in that 
        account which are not subject to subrogation to the United 
        States under this Act.
            ``(B) The amount so paid to each such person shall be 
        calculated by the proportion that the amount of compensatory 
        damages awarded in a judgment issued to that particular person 
        bears to the total amount of all compensatory damages awarded 
        to all persons to whom judgments have been issued in cases 
        identified in subsection (a)(2)(A) as of the date referred to 
        in subparagraph (A).
            ``(2) Nothing herein shall bar, or require delay in, 
        enforcement of any judgment to which this subsection applies 
        under any procedure or against assets otherwise available under 
        this section or under any other provision of law.
            ``(3) Any person receiving less than the full amount of 
        compensatory damages awarded to that party in judgments to 
        which this subsection applies shall not be required to make the 
        election set forth in subsection (a)(2)(C) in order to qualify 
        for payment hereunder.''.
    (d) Definitions.--In this section:
            (1) The term ``terrorist party'' means a terrorist, a 
        terrorist organization, or a foreign state 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).
            (2) The term ``blocked asset'' means any asset seized or 
        frozen by the United States in accordance with law, or 
        otherwise held by the United States without claim of ownership 
        by the United States.
            (3) 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.