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[House Report 114-685]
[From the U.S. Government Publishing Office]

114th Congress    }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                      {      114-685

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

 
      CLARIFYING AMENDMENT TO PROVIDE TERRORISM VICTIMS EQUITY ACT

                                _______
                                

 July 12, 2016.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3394]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 3394) to amend the Terrorism Risk Insurance Act of 
2002 to allow for the use of certain assets of foreign persons 
and entities to satisfy certain judgments against terrorist 
parties, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page

The Amendment....................................................     1
Purpose and Summary..............................................     2
Background and Need for the Legislation..........................     2
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
New Budget Authority and Tax Expenditures........................     6
Congressional Budget Office Cost Estimate........................     6
Duplication of Federal Programs..................................     7
Disclosure of Directed Rule Makings..............................     7
Performance Goals and Objectives.................................     7
Advisory on Earmarks.............................................     7
Section-by-Section Analysis......................................     7
Changes in Existing Law Made by the Bill, as Reported............     8

                             The Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Clarifying Amendment to Provide 
Terrorism Victims Equity Act'' or the ``CAPTIVE Act''.

SEC. 2. USE OF BLOCKED ASSETS TO SATISFY JUDGMENTS OF U.S. PERSONS 
                    AGAINST TERRORIST PARTIES.

  Section 201(d) of the Terrorism Risk Insurance Act of 2002 (28 U.S.C. 
1610 note) is amended--
          (1) in paragraph (2)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``means'';
                  (B) by amending paragraph (2)(A) to read as follows:
                  ``(A) means any asset seized or frozen by the United 
                States under section 5(b) of the Trading With the Enemy 
                Act (50 U.S.C. App. 5(b)), under sections 202 and 203 
                of the International Emergency Economic Powers Act (50 
                U.S.C. 1701; 1702), or under section 805(b) of the 
                Foreign Narcotics Kingpin Designation Act (21 U.S.C. 
                1904(b)); and'';
          (2) by redesignating paragraph (4) as paragraph (5); and
          (3) by inserting after paragraph (3) the following:
          ``(4) Person.--In subsection (a), the term `person' means--
                  ``(A) a natural person who, at the time the act of 
                terrorism described in subsection (a) was committed 
                upon which the judgment described in such subsection 
                was obtained by that person, was either--
                          ``(i) a national of the United States as 
                        defined in section 101(a)(22) of the 
                        Immigration and Nationality Act (8 U.S.C. 
                        1101(a)(22));
                          ``(ii) a member of the Armed Forces of the 
                        United States; or
                          ``(iii) otherwise an employee of the 
                        Government of the United States, or of an 
                        individual performing a contract awarded by the 
                        United States Government, acting within the 
                        scope of the employee's employment; or
                  ``(B) if the person described in subparagraph (A) is 
                deceased, the personal representative of the estate of 
                that deceased person.''.

SEC. 3. APPLICABILITY.

  The amendments made by this Act apply to any judgment described in 
section 201(a) of the Terrorism Risk Insurance Act of 2002 (28 U.S.C. 
1610 note) that is entered before, on, or after the date of the 
enactment of this Act.

                          Purpose and Summary

    H.R. 3394, the ``Clarifying Amendment to Provide Terrorism 
Victims Equity Act'' or ``CAPTIVE Act,'' amends the Terrorism 
Risk Insurance Act (TRIA) to allow U.S. victims of narco-
terrorism to satisfy court-awarded judgments against a 
terrorist party from the ``blocked assets'' of that terrorist 
party that have been frozen by the Federal Government under the 
Foreign Narcotics Kingpin Designation Act (Kingpin Act). Under 
TRIA, as currently written, only assets blocked under the 
International Emergency Economic Powers Act and the Trading 
with the Enemy Act are considered blocked assets.

                Background and Need for the Legislation

           A. SECTION 201 OF THE TERRORISM RISK INSURANCE ACT

    Under statutes, like the terrorism exception to the Foreign 
Sovereign Immunities Act (FSIA)\1\ and the civil liability 
provision in the Anti-Terrorism Act (ATA),\2\ U.S. terrorism 
victims have successfully obtained judgments against terrorist 
parties that have caused them harm. However, after being 
awarded such judgments, terrorism victims have often faced 
practical and legal difficulties at the enforcement stage. 
Assets of terrorist parties may not be present in the United 
States and, to the extent they are present, they are often 
either well concealed or seized or frozen by the Federal 
Government.
---------------------------------------------------------------------------
    \1\28 U.S.C. Sec. 1605A.
    \2\18 U.S.C. Sec. 2333.
---------------------------------------------------------------------------
    In 2002, in order to help lessen these enforcement burdens, 
Congress passed section 201 of the Terrorism Risk Insurance 
Act,\3\ which authorizes execution or attachment in aid of 
execution in order to satisfy a terrorism judgment against a 
terrorist party from the blocked assets of that terrorist 
party. By permitting terrorism victims to attach blocked assets 
in order to satisfy their terrorism-based judgments, TRIA 
permits victims to bypass the usual requirement that a litigant 
first obtain a license from the United States Department of the 
Treasury Office of Foreign Assets Control (OFAC) in order to 
attach blocked assets.\4\ Section 201(a) of TRIA provides
---------------------------------------------------------------------------
    \3\Terrorism Risk Insurance Act (TRIA), Pub. L. 107-297 201(a), 
Sec. 201, 116 Stat. 2337 (28 U.S.C. Sec. 1610 note).
    \4\See, e.g., 31 C.F.R. Sec. Sec. 515.201, 515.310 (CACR) 
(requiring a license for attachment); id. Sec. Sec. 535.201, 535.310 
(Iran Assets Control Regulations) (same); id. Sec. Sec. 594.201, 
594.312 (GTSR) (same).

        Notwithstanding any other provision of law . . . , 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 1605A or 1605(a)(7) (as such 
        section was in effect on January 27, 2008) of title 28, 
        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.\5\
---------------------------------------------------------------------------
    \5\TRIA Sec. 201(a).

    Accordingly, the elements a terrorism victim is required to 
establish before executing on a blocked asset under section 201 
are quite straightforward. The victim must first establish that 
he or she has obtained a judgment against a terrorist party 
that is for either a claim based on an act of terrorism or a 
claim for which a terrorist party is not immune under the 
terrorism exception to FSIA. The victim must then show that the 
assets are blocked as that term is defined in TRIA. And, 
finally, the total amount of the execution cannot exceed the 
amount of compensatory damages. If the victim wants to execute 
against the assets of a terrorist party's agency or 
instrumentality, he or she must further prove that the 
purported agency or instrumentality is actually an agency or 
instrumentality of the terrorist party against whom he or she 
holds a judgment.
    As currently defined in TRIA, a ``blocked asset'' is any 
asset seized or frozen by the United States pursuant to section 
5(b) of the Trading with the Enemy Act\6\ (TWEA) or sections 
202 and 203 of the International Emergency Economic Powers 
Act\7\ (IEEPA).\8\ Both TWEA and IEEPA authorize the President 
to freeze the assets of foreign enemies and their agencies and 
instrumentalities so that the President may dispose of these 
assets in the manner that best furthers the United States' 
foreign-relations and national-security interests. Assets 
become blocked under TWEA or IEEPA when OFAC designates the 
owner of the assets under those Acts.\9\
---------------------------------------------------------------------------
    \6\50 U.S.C. app. Sec. Sec. 1-44.
    \7\50 U.S.C. Sec. Sec. 1701-1708.
    \8\TRIA Sec. 201(d)(2)(A).
    \9\OFAC specifies the jurisdictional basis (the statute under which 
an individual or entity is designated) for any designation it makes. 
Thus, the blocking of an asset by OFAC does not necessarily bring that 
asset within the coverage of TRIA.
---------------------------------------------------------------------------
    In addition to TWEA and IEEPA, the President may also block 
the assets of designated foreign narcotics traffickers under 
the Kingpin Act. Section 805(b) of the Kingpin Act blocks all 
property and interests in property within the United States, or 
within the possession or control of any U.S. person, which are 
owned or controlled by significant foreign narcotics 
traffickers, as identified by the President, or foreign persons 
designated by the Secretary of the Treasury after consultation 
with the Attorney General, the Director of Central 
Intelligence, the Director of the Federal Bureau of 
Investigation, the Administrator of the Drug Enforcement 
Administration, the Secretary of Defense, the Secretary of 
Homeland Security, and the Secretary of State, as meeting the 
criteria in the Kingpin Act.\10\
---------------------------------------------------------------------------
    \10\21 U.S.C. Sec. 1904(b).
---------------------------------------------------------------------------
    Although the Kingpin Act has its genesis in a blocking 
order issued by President Clinton under IEEPA,\11\ assets 
blocked pursuant to the Kingpin Act are not considered 
``blocked assets'' for purposes of TRIA. Accordingly, under 
current law, assets blocked under the Kingpin Act are not 
available to satisfy judgments of terrorism victims against 
terrorist parties that are both terrorist parties and drug 
kingpins to the extent that their assets are only frozen under 
the Kingpin Act.\12\
---------------------------------------------------------------------------
    \11\Exec. Order No. 12978, 60 Fed. Reg. 54579 (October 24, 1995). 
In 1999, Congress enacted the Kingpin Act based partially upon the 
successful application of IEEPA against Colombian narcotics traffickers 
by Executive Order 12978. H.R. Rep. No. 106-457, at 22, 42-43 (1999) 
(Conf. Rep.).
    \12\Stansell v. Revolutionary Armed Forces of Colombia, 704 F.3d 
910, 915-17 (11th Cir. 2013) (holding that ``assets frozen pursuant to 
the Kingpin Act are not `blocked assets' under the Terrorism Act'').
---------------------------------------------------------------------------

                           B. THE CAPTIVE ACT

    The CAPTIVE Act amends TRIA in two small, but important 
ways. First, it amends the definition of ``blocked asset'' 
under TRIA such that an asset of a terrorist party that is 
blocked under the Kingpin Act is subject to execution or 
attachment in aid of execution in order to satisfy a terrorism 
judgment against that terrorist party to the extent of any 
compensatory damages for which the terrorist party has been 
adjudged liable. As is explained above, ``blocked asset'' is 
currently defined only to include assets seized or frozen under 
TWEA and IEEPA.
    This presents a problem in cases in which a terrorist 
party's assets (or the assets of an agency or instrumentality 
of a terrorist party) are blocked pursuant only to the Kingpin 
Act. One such case involved the victims of a terrorist attack 
by the Revolutionary Armed Forces of Colombia (FARC). On 
February 13, 2003, Keith Stansell, Marc Gonsalves, Thomas 
Howes, and Thomas Janis were flying over Colombia while 
performing counter-narcotics reconnaissance. Members of FARC 
shot their plane down and, after a crash landing, captured the 
group. FARC immediately executed Janis and took the other 
survivors hostage, holding them for over 5 years. After they 
were rescued and returned to the United States, Stansell, 
Gonsalves, Howes, and Janis's wife and his surviving children 
successfully brought suit against FARC under the Anti-Terrorism 
Act.\13\ This group of victims though has had difficulty 
satisfying this judgment against FARC.
---------------------------------------------------------------------------
    \13\Id. at 913. (noting that the victims sued FARC in the U.S. 
District Court for the Middle District of Florida under the civil 
remedies provisions of the Anti-Terrorism Act, 18 U.S.C. Sec. 2333, and 
obtained a default judgment against FARC).
---------------------------------------------------------------------------
    FARC has been designated as both a ``Specially Designated 
Global Terrorist,'' under IEEPA, and a ``Significant Foreign 
Narcotics Trafficker,'' under the Kingpin Act. However, to the 
extent any FARC assets exist within the jurisdiction of the 
United States, such assets are well concealed. Because of the 
difficulty inherent in the direct execution of the judgment 
against FARC, these victims have sought to satisfy their award 
by attaching the assets of agencies or instrumentalities of 
FARC pursuant to section 201(a) of TRIA. But even this strategy 
has proved difficult as the only identifiable blocked assets of 
FARC agencies and instrumentalities are designated under the 
Kingpin Act, rather than under IEEPA or TWEA, making them 
outside TRIA's ambit. The CAPTIVE Act, by adding assets blocked 
pursuant to the Kingpin Act to the definition of ``blocked 
asset'' in TRIA, addresses this issue for victims of 
terrorists' acts carried out by narco-terrorists like FARC.
    Second, to make TRIA consistent with the civil liability 
provision in the ATA\14\ and the state-sponsored terrorism 
exception to FSIA,\15\ the CAPTIVE Act defines ``person'' as it 
is used in section 201(a) of TRIA to be limited to U.S. 
nationals, members of the armed forces, and U.S. government 
employees and contractors. This change will prevent foreign 
nationals, who Congress has specifically excluded from the ATA 
and state-sponsored terrorism FSIA cases, from using TRIA to 
defeat the efforts of U.S. terrorism victims to enforce their 
compensatory damages judgments from the limited pool of blocked 
assets.
---------------------------------------------------------------------------
    \14\18 U.S.C. Sec. 2333 (only a ``national of the United States'' 
may bring a claim under the civil liability provision in the Anti-
Terrorism Act).
    \15\28 U.S.C. Sec. 1605A (the private right of action provided for 
in the terrorism exception to the Foreign Sovereign Immunities Act is 
limited to U.S. nationals, members of the armed forces, and U.S. 
government employees and contractors).
---------------------------------------------------------------------------

                                Hearings

    The Committee on the Judiciary held no hearings on H.R. 
3394.

                        Committee Consideration

    On April 27, 2016, the Committee met in open session and 
ordered the bill, H.R. 3394, favorably reported, with an 
amendment, by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that there 
were no recorded votes during the Committee's consideration of 
H.R. 3394.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 3394, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 24, 2016.
Hon. Bob Goodlatte, Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3394, the 
``Clarifying Amendment to Provide Terrorism Victims Equity 
Act.''
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Stephen 
Rabent, who can be reached at 226-2860.
            Sincerely,
                                                Keith Hall,
                                                  Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member

  H.R. 3394--Clarifying Amendment to Provide Terrorism Victims Equity 
                                  Act.

      As ordered reported by the House Committee on the Judiciary 
                           on April 27, 2016.

    H.R. 3394 would amend the Terrorism Risk Insurance Program 
(TRIP). CBO estimates that implementing H.R. 3394 would have no 
significant effect on the federal budget.
    Under current law, TRIP authorizes the use of the blocked 
assets of groups designated as terrorist parties to settle 
claims related to acts of terrorism perpetrated by those 
groups.\1\ H.R. 3394 would permit the blocked assets to remain 
available to satisfy claims arising from judgments against a 
terrorist group even if the group later loses that designation. 
H.R. 3394 also would expand the definition of blocked asset to 
include assets seized or frozen under the Foreign Narcotics 
Kingpin Designation Act. On the basis of information from the 
Department of the Treasury, CBO estimates that implementing the 
bill would have no significant cost to the federal government.
---------------------------------------------------------------------------
    \1\Blocked assets are defined in TRIP as certain assets seized or 
frozen by the United States under the Trading With the Enemy Act or the 
International Emergency Powers Act.
---------------------------------------------------------------------------
    Enacting H.R. 3394 would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 3394 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2027.
    H.R. 3394 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Stephen Rabent. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                    Duplication of Federal Programs

    No provision of H.R. 3394 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 3394 specifically directs 
to be completed no specific rule makings within the meaning of 
5 U.S.C. Sec. 551.

                    Performance Goals and Objectives

    The Committee states that, pursuant to clause 3(c)(4) of 
rule XIII of the Rules of the House of Representatives, H.R. 
3394 amends section 201 of the Terrorism Risk Insurance Act to 
make assets that are seized or frozen under the Foreign 
Narcotics Kingpin Designation Act available for execution or 
attachment in aid of execution to satisfy judgments of U.S. 
terrorism victims.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 3394 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of Rule XXI.

                      Section-by-Section Analysis

    The following discussion describes the bill as reported by 
the Committee.
Section 1. Short Title.
    Section 1 provides for the short title of the legislation, 
the ``Clarifying Amendment to Provide Terrorism Victims Equity 
Act'' or the ``CAPTIVE Act.''
Section 2. Use of Blocked Assets to Satisfy Judgments of U.S. Persons 
        Against Terrorist Parties.
    Section 2 amends section 201(d) of the Terrorism Risk 
Insurance Act of 2002 (28 U.S.C. Sec. 1610 note) in order to 
add assets seized or frozen by the United States under section 
805(b) of the Foreign Narcotics Kingpin Designation Act (21 
U.S.C. Sec. 1904(b)) to the definition of ``blocked asset.'' In 
addition, section 2 adds a definition of ``person'' to section 
201(d). Under the CAPTIVE Act, ``person'' is defined as a 
natural person who, at the time of the act of terrorism upon 
which the eligible judgment is based, was (1) a national of the 
United States, (2) a member of the Armed Forces of the United 
States, (3) otherwise an employee of the Federal Government or 
an individual performing a Federal Government contract, or (4) 
the personal representative of the estate of a deceased person 
described in clauses (1), (2), or (3).
Section 3. Applicability.
    Section 3 provides that the amendments made by the CAPTIVE 
Act shall apply to any judgment described in section 201(a) of 
the Terrorism Risk Insurance Act of 2002 (28 U.S.C. Sec. 1610 
note) entered before, on, or after the date of the enactment of 
the Act. This protects terrorist victim judgment holders' 
rights by clarifying that the changes to existing law made by 
the bill apply retroactively to previously entered judgments on 
liability for acts of terrorism.

         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, and existing law in which no 
change is proposed is shown in roman):

TERRORISM RISK INSURANCE ACT OF 2002

           *       *       *       *       *       *       *

                TITLE II--TREATMENT OF TERRORIST ASSETS

SEC. 201. SATISFACTION OF JUDGMENTS FROM BLOCKED 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 1605A or 1605(a)(7) 
(as such section was in effect on January 27, 2008) 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) [Omitted Amendatory]
  (d) Definitions.--In this section, the following definitions 
shall apply:
          (1) Act of terrorism.--The term ``act of terrorism'' 
        means--
                  (A) any act or event certified under section 
                102(1); or
                  (B) to the extent not covered by subparagraph 
                (A), any terrorist activity (as defined in 
                section 212(a)(3)(B)(iii) of the Immigration 
                and Nationality Act (8 U.S.C. 
                1182(a)(3)(B)(iii))).
          (2) Blocked asset.--The term ``blocked asset'' 
        [means]--
                  [(A) any asset seized or frozen by the United 
                States under section 5(b) of the Trading With 
                the Enemy Act (50 U.S.C. App. 5(b)) or under 
                sections 202 and 203 of the International 
                Emergency Economic Powers Act (50 U.S.C. 1701; 
                1702); and]
                  (A) means any asset seized or frozen by the 
                United States under section 5(b) of the Trading 
                With the Enemy Act (50 U.S.C. App. 5(b)), under 
                sections 202 and 203 of the International 
                Emergency Economic Powers Act (50 U.S.C. 1701; 
                1702), or under section 805(b) of the Foreign 
                Narcotics Kingpin Designation Act (21 U.S.C. 
                1904(b)); and
                  (B) does not include property that--
                          (i) is subject to a license issued by 
                        the United States Government for final 
                        payment, transfer, or disposition by or 
                        to a person subject to the jurisdiction 
                        of the United States in connection with 
                        a transaction for which the issuance of 
                        such license has been specifically 
                        required by statute other than the 
                        International Emergency Economic Powers 
                        Act (50 U.S.C. 1701 et seq.) or the 
                        United Nations Participation Act of 
                        1945 (22 U.S.C. 287 et seq.); or
                          (ii) in the case of property subject 
                        to the Vienna Convention on Diplomatic 
                        Relations or the Vienna Convention on 
                        Consular Relations, or that enjoys 
                        equivalent privileges and immunities 
                        under the law of the United States, is 
                        being used exclusively for diplomatic 
                        or consular purposes.
          (3) Certain property.--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) Person.--In subsection (a), the term ``person'' 
        means--
                  (A) a natural person who, at the time the act 
                of terrorism described in subsection (a) was 
                committed upon which the judgment described in 
                such subsection was obtained by that person, 
                was either--
                          (i) a national of the United States 
                        as defined in section 101(a)(22) of the 
                        Immigration and Nationality Act (8 
                        U.S.C. 1101(a)(22));
                          (ii) a member of the Armed Forces of 
                        the United States; or
                          (iii) otherwise an employee of the 
                        Government of the United States, or of 
                        an individual performing a contract 
                        awarded by the United States 
                        Government, acting within the scope of 
                        the employee's employment; or
                  (B) if the person described in subparagraph 
                (A) is deceased, the personal representative of 
                the estate of that deceased person.
          [(4)] (5) Terrorist party.--The term ``terrorist 
        party'' means a terrorist, a terrorist organization (as 
        defined in section 212(a)(3)(B)(vi) of the Immigration 
        and Nationality Act (8 U.S.C. 1182(a)(3)(B)(vi))), 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).

           *       *       *       *       *       *       *

                                  [all]
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