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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9666 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9666

   To require the President to seize Azerbaijani assets and create a 
 process for Armenians displaced from Artsakh to claim such assets as 
         compensation for lost revenue, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2024

Mr. Schiff (for himself, Ms. Eshoo, Mr. Pallone, Mr. Amo, Mrs. Beatty, 
 Mr. Costa, Mr. Gottheimer, Mr. LaMalfa, Mr. Magaziner, Mr. McGovern, 
  Ms. Meng, Mr. Mullin, Mrs. Napolitano, Ms. Norton, Ms. Sanchez, Ms. 
  Schakowsky, Mr. Sherman, Ms. Titus, and Mrs. Trahan) introduced the 
following bill; which was referred to the Committee on Foreign Affairs, 
 and in addition to the Committee on the Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
   To require the President to seize Azerbaijani assets and create a 
 process for Armenians displaced from Artsakh to claim such assets as 
         compensation for lost revenue, 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 ``Artsakh Revenue Recovery Act of 
2024''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Between September 19 and 20, 2023, the Republic of 
        Azerbaijan launched an unprovoked military assault on the 
        Republic of Artsakh, also known as Nagorno-Karabakh. The 
        massive invasion was preceded by a year-long blockade of the 
        region, which created the conditions for a humanitarian crisis 
        even before the military assault. The blockade and the military 
        invasion of Artsakh resulted in over 120,000 Armenians 
        displaced from their homes, forcing them to seek refuge in 
        neighboring Republic of Armenia.
            (2) Azerbaijan's military offensive into Artsakh has been 
        described as the ethnic cleansing of all Armenians from the 
        area in violation of the United Nations International 
        Convention on the Elimination of All Forms of Racial 
        Discrimination.
            (3) The Armenians, forcibly displaced from Artsakh, lost 
        their jobs and were separated from their property, consisting 
        of 14,772 businesses, 142,000 acres of farmland, and 2,729 
        commerical vehicles.
            (4) The jobs and property previously provided a source of 
        revenue for the Armenians who lived in Artsakh, a means to 
        support a livelihood and the well-being of families with 
        dignity and respect.
            (5) The annual gross domestic product (GDP) from Artsakh in 
        2022 was approximately $628,705,000.
            (6) While this property continues to be owned by the 
        Armenians who were forced to leave Artsakh, it is not under 
        their direct control and, therefore, is not providing the 
        previously generated source of revenue to its owners.
            (7) The displaced Armenians from Artsakh who are now 
        refugees in Armenia under Temporary Protected Status have 
        limited ability to earn a living wage for themselves and their 
        families. The Government of Armenia is providing financial 
        assistance to these refugees. However, this financial 
        assistance is insufficient to satisfy the rising cost of 
        housing and other basic needs.
            (8) The State Oil Fund of the Republic of Azerbaijan, a 
        sovereign wealth fund, has an investment portfolio of over 
        $57,000,000,000, of which $32,100,000,000 is in United States 
        dollar-denominated investments.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) Azerbaijan committed acts of unprovoked aggression when 
        it implemented a blockade against Artsakh in December 2022 and 
        then executed a full-scale military assault in September 2023, 
        acts which were violations of international law and gross 
        violations of the human rights of the Armenians residing in 
        Artsakh;
            (2) as a result of Azerbaijan's aggression, Armenians were 
        forcibly displaced from Artsakh, leaving behind their jobs, 
        businesses, and property that had previously generated revenue 
        and livelihoods, which the Armenians have been unable to 
        recover since;
            (3) the Government of Azerbaijan should bear the full 
        responsibility and liability for the damages caused by the 
        military assault into Artsakh, which includes the loss of 
        revenue from jobs, businesses, and property;
            (4) the Government of Azerbaijan must honor the rights to 
        the property of all displaced Armenians from Artsakh and the 
        right for these owners to reclaim their property at an 
        appropriate time following the implementation of a peace 
        agreement between Azerbaijan and Armenia;
            (5) until such time that the property owners either return 
        to Artsakh to reclaim their property or dispose of their 
        property through fair market and legally sufficient means, the 
        Government of Azerbaijan should be responsible for compensating 
        all displaced Armenians from Artsakh due to their lost revenue;
            (6) if Azerbaijan refuses to pay compensation for lost 
        revenue, a funding mechanism should be established by the 
        President, which would seize and then transfer Azerbaijan's 
        sovereign assets in the United States for the purpose of paying 
        compensation for lost revenue to the victims of Azerbaijan's 
        aggression; and
            (7) the Government of Azerbaijan should settle to the 
        satisfaction and agreement of property owners the irrevocable 
        damage to property in Artsakh, which prohibits the future use 
        of the property as a source of generating revenue or for 
        personal recreation, as the result of Azerbaijan's military 
        assault.

SEC. 4. SANCTIONS WITH RESPECT TO THE REPUBLIC OF AZERBAIJAN.

    (a) Azerbaijani Assets Report Requirement.--Not later than 60 days 
after the date of the enactment of this Act, the President shall 
require any United States financial institution holding an Azerbaijani 
sovereign asset to promptly provide notice of such asset to the 
Director of the Office of Foreign Assets Control of the Department of 
the Treasury.
    (b) Sanctions.--
            (1) Asset blocking.--Not later than 60 days after the date 
        of enactment of this Act, and notwithstanding the requirements 
        of section 202 of the International Emergency Economic Powers 
        Act (50 U.S.C. 1701), the President shall exercise all powers 
        granted to the President by that Act to block and prohibit all 
        transactions in all Azerbaijani sovereign assets if such assets 
        are in the United States, come within the United States, or are 
        or come within the possession or control of a United States 
        person.
            (2) Asset seizure.--Not later than 90 days after the 
        President blocks and prohibits transactions under paragraph 
        (1), the President shall seize any Azerbaijani sovereign assets 
        described in such paragraph.
            (3) Visas and admission.--
                    (A) In general.--The President may, in accordance 
                with section 212(f) of the Immigration and Nationality 
                Act (8 U.S.C. 1182(f)), deny to any senior official of 
                Azerbaijan or immediate family member of such 
                official--
                            (i) a visa or other documentation to enter 
                        the United States; and
                            (ii) admission into the United States.
                    (B) Public availability.--The Secretary of State 
                shall make publicly available on the website of the 
                Department of State the name of each individual denied 
                admission into the United States pursuant to 
                subparagraph (A).
    (c) Waiver.--The President may, on a case-by-case basis, waive the 
application of sanctions under subsection (b) with respect to the 
Government of Azerbaijan or a senior official of Azerbaijan if, prior 
to the application and enforcement of such sanctions--
            (1) the President submits to the appropriate congressional 
        committees a request for such waiver; and
            (2) after the date of the enactment of this Act, a law is 
        enacted specifically approving such waiver.
    (d) Termination.--The requirement to impose sanctions under 
subsection (b) shall terminate when each of the following has occurred:
            (1) Not less than 90 days have passed since the date 
        Azerbaijan and the Republic of Armenia have concluded a peace 
        agreement.
            (2) Azerbaijan and Armenia have begun implementing such 
        agreement.
            (3) Each eligible person that has submitted an eligible 
        claim for which an amount has been determined under section 
        6(a)(3) has been paid such amount by the Government of 
        Azerbaijan or the Artsakh Revenue Recovery Fund established 
        under section 5.

SEC. 5. ESTABLISHMENT OF THE ARTSAKH REVENUE RECOVERY FUND.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall establish an account, to be 
known as the ``Artsakh Revenue Recovery Fund'' (in this Act referred to 
as the ``Fund''), to consist of the funds deposited into the account 
under subsection (d) and any amounts appropriated pursuant to the 
authorization of appropriations under subsection (f).
    (b) Purpose.--The purpose of the Fund is to receive assets seized 
pursuant to section 4(b)(2) and to provide compensation for lost 
revenue from eligible property to certain Armenians displaced from 
Artsakh in the absence of such compensation from the Government of 
Azerbaijan.
    (c) Board of Directors.--
            (1) Establishment.--The Secretary of State shall establish 
        a board of directors to manage the Fund (in this Act referred 
        to as the ``Board'').
            (2) Composition.--The Board shall be composed of citizens 
        of the United States and include citizens of Armenia.
    (d) Liquidation and Deposit.--The President shall--
            (1) not later than 90 days after seizing Azerbaijani 
        sovereign assets that are funds under section 4(b)(2), deposit 
        such funds into the Fund; and
            (2) not later than 180 days after seizing Azerbaijani 
        sovereign assets that are property under section 4(b)(2)--
                    (A) liquidate or sell such property; and
                    (B) deposit the funds resulting from such 
                liquidation or sale, less any costs incurred by such 
                liquidation or sale, into the Fund.
    (e) Use of Seized Property.--Subject to subsection (g), amounts in 
the Fund shall be available, without subsequent appropriation, to be 
used only--
            (1) to make payments to eligible persons for revenue lost 
        during the period beginning on September 19, 2023, and ending 
        on the date that is 90 days after a peace agreement between 
        Azerbaijan and Armenia is concluded; and
            (2) to pay for routine expenses incurred in the operation 
        of the Fund, including the work of the claims processing team 
        described in section 6(a)(2).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Fund $100,000,000.
    (g) Amounts Returned to the Treasury.--Upon deposit of total 
amounts into the Fund under subsection (d) equal to or exceeding the 
amount appropriated to the Fund by Congress (if any), the Board shall 
transfer to the general fund of the Treasury an amount equal to the 
amount appropriated pursuant to the authorization of appropriations 
under subsection (f).
    (h) Report to Congress.--The Board shall annually submit to the 
appropriate congressional committees a report on the operation of the 
Fund for activities in the year prior to the submission of the report, 
including a description of--
            (1) amounts transferred to the Fund;
            (2) operational expenses of the Fund; and
            (3) disbursement of amounts in the Fund.
    (i) Termination.--
            (1) In general.--The Fund shall terminate on the later of--
                    (A) the date that is one year after a peace 
                agreement between Azerbaijan and Armenia has been 
                signed; or
                    (B) the date on which each eligible person that has 
                submitted an eligible claim for which an amount has 
                been determined under section 6(a)(3) has been paid 
                such amount by the Government of Azerbaijan or the 
                Fund.
            (2) Disposition of funds.--
                    (A) In general.--Any amounts remaining in the Fund 
                on the date of termination under paragraph (1) shall be 
                returned to the Government of Azerbaijan or to the 
                senior officials from which such amounts originated.
                    (B) Amount.--The amount to be provided to the 
                Government of Azerbaijan and each official described in 
                subparagraph (A) shall be reduced on a proportionate 
                basis based on--
                            (i) the amount of overall compensation 
                        payments, to be calculated as a proportion of 
                        total assets seized and the total amount of 
                        compensation paid; and
                            (ii) the total operating expenses for the 
                        Fund

SEC. 6. SUBMISSION OF REVENUE RECOVERY CLAIMS.

    (a) Claim Process for Recovery of Revenue.--The Secretary of State 
shall coordinate with relevant countries near Azerbaijan and 
international organizations to establish a streamlined process by 
which--
            (1) eligible persons shall have the opportunity to submit 
        to the Government of Azerbaijan, through the Fund's claims 
        processing team described in paragraph (2), eligible claims 
        described in subsection (b) beginning on the date that is 90 
        days after the date of the enactment of this Act;
            (2) a claims processing team, to be established by the 
        Board and composed to the extent possible of former officials 
        of the Government of Artsakh and supported as necessary by 
        appropriate nongovernmetal organizations, shall verify the 
        employment or the partial or full ownership of the property 
        described in each eligible claim submitted under paragraph (1) 
        to a reasonable standard through attestation that does not 
        require the presentation of an employment contract, an original 
        ownership document, or a deed;
            (3) the claims processing team described in paragraph (2) 
        shall verify or reasonably estimate the amount of revenue from 
        the employment or property verified under paragraph (2) that 
        the eligible person lost as a result of the Azerbaijani 
        military assault in September 2023 in Artsakh;
            (4) the Government of Azerbaijan can--
                    (A) take receipt of eligible claims that have been 
                verified under paragraphs (2) and (3);
                    (B) seek clarification with respect to any claim 
                that is not related to the validity of the claim or the 
                amount of compensation determined by the claims 
                processing team; and
                    (C) pay, within 90 days of receipt of such claim, 
                the eligible person that submitted the claim, the 
                amount determined under paragraph (3); and
            (5) not later than 90 days after the Government of 
        Azerbaijan fails to pay any eligible person the full amount 
        determined under paragraph (3), such eligible person shall be 
        paid such amount from the Fund, less any amount paid by the 
        Government of Azerbaijan.
    (b) Eligible Claim Described.--An eligible claim described in this 
paragraph is a claim for compensation for lost revenue associated with 
an eligible employment or property from the period of September 19, 
2023, through the date that is 90 days after the conclusion of a peace 
agreement between Azerbaijan and Armenia, including proportional 
compensation for revenue lost from eligible property owned by multiple 
owners, if such property--
            (1) is not irrevocably damaged or destroyed; or
            (2) is irrevocably damaged or destroyed, and--
                    (A) such damage or destruction occurred in Artsakh 
                as a result of the Azerbaijani military assault in 
                September 2023; and
                    (B) the owner of such property has not received 
                compensation for the loss of the property, including 
                compensation from a government or from commercial 
                insurance.

SEC. 7. REPORT TO CONGRESS.

    Not later than 120 days after the date of the enactment of this 
Act, the President shall submit to the appropriate congressional 
committees a report that includes--
            (1) a list of all Azerbaijani sovereign assets subject to 
        sanction under section 4(a)(1);
            (2) a plan for the seizure of such assets and deposit of 
        such assets into the Fund; and
            (3) a plan for establishing the Fund, including the actions 
        taken to appoint the initial members of the Board.

SEC. 8. RULES OF CONSTRUCTION.

    (a) Presidential Sanctions Authority.--Nothing in this Act may be 
construed to limit the authority of the President to designate persons 
for the imposition of sanctions pursuant to an Executive order issued 
under the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) or otherwise pursuant to that Act.
    (b) Ownership of Property.--No payment made pursuant to this Act, 
including with respect to damaged or destroyed eligible property, may 
be construed to transfer ownership of such property.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs of the House 
                of Representatives; and
                    (B) the Committee on Foreign Relations of the 
                Senate.
            (2) Azerbaijani sovereign asset.--The term ``Azerbaijani 
        sovereign asset'' means any funds, property, or interest in 
        property owned or controlled by--
                    (A) the Government of Azerbaijan; or
                    (B) a senior official of Azerbaijan.
            (3) Eligible person.--The term ``eligible person'' means an 
        individual who--
                    (A) is an individual displaced from Artsakh as a 
                result of Azerbaijan's military offensive in September 
                2023;
                    (B) is residing in--
                            (i) the United States; or
                            (ii) Armenia;
                    (C) is an individual who--
                            (i) had eligible employment for at least 30 
                        days from the date of September 19 2023, in a 
                        part-time or full-time position in Artsakh, and 
                        has lost the revenue from that employment; or
                            (ii) owns part or all of an eligible 
                        property, including property subject to a debt 
                        or lien held by a financial institution or 
                        other private party; and
                    (D) has lost revenue from eligible property and has 
                not received compensation for such lost revenue, other 
                than compensation from the Fund.
            (4) Eligible employment.--The term ``eligible employment'' 
        means a job, either part-time or full-time, that provided a 
        payment for work performed as a condition of the job, and for 
        which the employer is no longer in possession of the means to 
        continue carrying out its government functions or business 
        operations in Artsakh, including--
                    (A) all forms of employed work in manufacturing, 
                professional services, hospitality industry, food 
                services, agriculture, and government, which resulted 
                in the payment of income taxes to the Republic of 
                Artsakh; and
                    (B) all forms of fixed-benefit retirement pensions, 
                including from previous employment with the government, 
                military, or private sector in Artsakh.
            (5) Eligible property.--The term ``eligible property'' 
        means physical property that was used to generate revenue in 
        Artsakh prior to September 19, 2023, including the following:
                    (A) Land used for farming or generating rental 
                income.
                    (B) Buildings used by businesses for manufacturing 
                or other services.
                    (C) Vehicles used by businesses for transportation 
                of goods or completion of services.
                    (D) Tools and special equipment used by businesses 
                for manufacturing or the completion of services.
                    (E) Livestock and other animals used by farmers or 
                businesses.
            (6) Financial institution.--The term ``financial 
        institution'' has the meaning given that term in section 5312 
        of title 31, Code of Federal Regulations.
            (7) Immediate family member.--The term ``immediate family 
        member'' means, with respect to an individual, a spouse, child, 
        parent, or sibling of such individual.
            (8) Revenue.--The term ``revenue'' means the total amount 
        of income generated by the sale of goods or services.
            (9) Senior official of azerbaijan.--The term ``senior 
        official of Azerbaijan'' means an individual who, at any time 
        between December 1, 2022, and the date Azerbaijan and Armenia 
        conclude a peace agreement, has occupied in the Government of 
        Azerbaijan one of the following positions or an equivalent 
        position:
                    (A) President.
                    (B) Vice President.
                    (C) Head of the Administration.
                    (D) Assistant to the President.
                    (E) Head of the Secretariat of the First Vice-
                President.
                    (F) Press Secretary of the President.
                    (G) Chief of the Protocol Service of the President.
                    (H) The head of any department.
                    (I) Plenipotentiary Representative of the President 
                in the Nakhchivan Autonomous Republic.
                    (J) Special Representative of the President in the 
                Shusha district.
                    (K) An officer of the military of Azerbaijan at the 
                rank of General, Colonel General, or Admiral, or any 
                other military officer implicated in war crimes against 
                the former residents of Artsakh.
                    (L) An official of the Government of Azerbaijan 
                determined by the Department of State to have had 
                substantial influence in the planning or execution of 
                the attack of September 19, 2023, on the Republic of 
                Artsakh.
            (10) United states financial institution.--The term 
        ``United States financial institution'' has the meaning given 
        that term in section 561.309 of title 15, Code of Federal 
        Regulations.
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