II 

109TH CONGRESS 

2D SESSION S. 3878 

To provide compensation for United States citizens taken hostage by terrorists 

or State sponsors of terrorism. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 7 (legislative day, SEPTEMBER 6), 2006 

Mr. ALLEN (for himself and Mr. MENENDEZ) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL 

To provide compensation for United States citizens taken 

hostage by terrorists or State sponsors of terrorism. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. COMPENSATION FOR UNITED STATES CITIZENS 

4 TAKEN HOSTAGE BY TERRORISTS OR STATE 

5 SPONSORS OF TERRORISM. 

6 (a) IN GENERAL.—In accordance with such proce7 dures as the President may by regulation establish, the 

8 President or his designee shall receive the claims of, and 

9 pay compensation to, any national of the United States, 

10 or to the estate of any such national, who— 


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1 (1) as of the date of enactment of this Act has 

2 a claim pending in a court of the United States 

3 against a foreign state seeking compensation for in4 juries caused by an act of hostage-taking or has ob5 tained a judgment on such a claim that has not been 

6 fully satisfied; 

7 (2) at any time on or after August 2, 1990, and 

8 while not serving on active duty in the Armed 

9 Forces of the United States, was taken hostage by 

10 a terrorist party; or 

11 (3) was a representative plaintiff or class mem12 ber in Case Number 1:00CV03110(EGS) in the 

13 United States District Court for the District of Co14 lumbia. 

15 (b) LIMIT ON AMOUNT OF AWARD.—The amount 

16 that may be awarded to any person seeking compensation 

17 under this section shall not exceed $500,000, adjusted to 

18 reflect the annual percentage change in the Consumer 

19 Price Index, from the date on which the hostage-taking 

20 occurred to the date on which compensation is paid. 

21 (c) TYPE OF AWARD.—Subject to the limit in sub22 section (b), any person seeking compensation for hostage23 taking under this section shall be awarded the following 

24 amounts with respect to which the United States shall 

25 enjoy full subrogation rights in the event such person obVerDate Aug 31 2005 00:06 Sep 13, 2006 Jkt 049196 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3878.IS S3878

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1 tains any recovery in litigation or otherwise as a result 

2 of such hostage-taking: 

3 (1) In the case of any person who has been 

4 issued a final judgment for compensatory damages, 

5 the unsatisfied amount of such judgment. 

6 (2) In the case of any person who survived his 

7 captivity and who has not been issued a final judg8 ment for compensatory damages, $10,000 per day 

9 for each day that such person was held or, if he died 

10 or was tortured during the course of his captivity, 

11 the maximum amount in subsection (b). 

12 (d) PROHIBITION ON CIVIL ACTIONS AGAINST FOR13 EIGN STATES.—A person who has accepted compensation 

14 under subsection (c)(2) may not commence or maintain 

15 in a court of the United States a civil action seeking com16 pensation for such injuries or damages associated with 

17 such hostage taking against a foreign state or its agencies 

18 or instrumentalities. 

19 (e) DEFINITIONS.—In this section: 

20 (1) HOSTAGE TAKING.—The term ‘‘hostage 

21 taking’’ has the meaning given that term in Article 

22 1 of the International Convention Against the Tak23 ing of the Hostages and includes any act that 

24 caused a person to be in ‘‘hostage status’’ within the 


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1 meaning of section 599C(d)(1) of Public Law 101– 

2 513. 

3 (2) TERRORIST PARTY.—The term ‘‘terrorist 

4 party’’ has the meaning given that term in the Ter5 rorism Risk Insurance Act (section 201(d)(4) of 

6 Public Law 107–297) and includes any person, orga7 nization, or foreign state that was designated as 

8 such either at the time or as a result of the act of 

9 hostage-taking for which compensation is sought. 

10 (f) FUNDING.—Funds sufficient to pay persons to 

11 whom compensation is due under this section shall be 

12 made available from the Hostage Victims Fund, into 

13 which the President shall direct deposits, in proportions 

14 the President so allocates in the discretion of the Presi15 dent, from— 

16 (1) the ‘‘blocked assets’’ of terrorist parties, as 

17 that term is defined in the Terrorism Risk Insurance 

18 Act (section 201(d)(2) of Public Law 107–297); 

19 (2) amounts received by the United States by 

20 reason of any legal action taken by the United 

21 States against any person relating to improper con22 duct in connection with the Oil for Food Program of 

23 the United Nations, including any fines, forfeitures 

24 or disgorgements of amounts received through any 

25 activity related to said Program; or 


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1 (3) amounts received as a result of any fine or 

2 forfeiture obtained from any person or entity in con3 nection with a violation of— 

4 (A) the International Emergency Economic 

5 Powers Act (50 U.S.C. 1701 et seq.); 

6 (B) section 5(b) of the Trading With the 

7 Enemy Act (50 U.S.C. App 5(b)); 

8 (C) the United and Strengthening America 

9 by Providing Appropriate Tools Required to 

10 Intercept and Obstruct Terrorism (USA PA11 TRIOT) Act of 2001 (Public Law 107–56; 115 

12 Stat. 272); 

13 (D) the Bank Secrecy Act (codified at title 

14 12 U.S.C. 1829 (b) and 1951–1959 and 31 

15 U.S.C. 5311–5313 and 5316–5332); 

16 (E) the Export Administration Act (50 

17 U.S.C. App. 2401–2410); or 

18 (F) any regulations promulgated under an 

19 Act listed in subparagraphs (A) through (E). 

20 (g) ADDITIONAL COMPENSATION FOR VICTIMS OF

21 IRANIAN HOSTAGE TAKING IN TEHRAN.—In addition to 

22 any amounts that may be awarded under subsection (c), 

23 the President or his designee shall from monies deposited 

24 for Iran in the Iran Foreign Military Sales Fund account 


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1 within the Foreign Military Sales Fund (including any 

2 amounts accrued as interest thereon)— 

3 (1) pay any person who qualifies for payment 

4 under subsection (a)(3) who was taken hostage by 

5 the Islamic Republic of Iran on November 4, 1979 

6 additional compensation of $500,000, adjusted to re7 flect the annual percentage change in the Consumer 

8 Price Index, from the date on which the hostage tak9 ing occurred to the date on which the compensation 

10 is paid; and 

11 (2) pay any person who was, at the time of 

12 such hostage-taking, the spouse or child of such per13 son, 50 percent of the total amount of compensation 

14 paid to the hostage. 

Æ 


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