Gulf War Veterans' Iraqi Claims Protection Act of 1998

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gulf War Veterans' Iraqi Claims 
Protection Act of 1998''.

SEC. 2. ADJUDICATION OF CLAIMS.

    (a) Claims Against Iraq.--The United States Commission is 
authorized to receive and determine the validity and amounts of any 
claims by nationals of the United States against the Government of 
Iraq.
    (b) Decision Rules.--In deciding claims under subsection (a), the 
United States Commission shall apply, in the following order--
            (1) applicable substantive law, including international 
        law; and
            (2) applicable principles of justice and equity.
    (c) Priority Claims.--Before deciding any other claim against the 
Government of Iraq, the United States Commission shall, to the extent 
practical, decide all pending non-commercial claims of active, retired, 
or reserve members of the United States Armed Forces, retired former 
members of the United States Armed Forces, and other individuals 
arising out of Iraq's invasion and occupation of Kuwait or out of the 
1987 attack on the USS Stark.
    (d) Applicability of International Claims Settlement Act.--To the 
extent they are not inconsistent with the provisions of this Act, the 
provisions of title I (other than section 2(c)) and title VII of the 
International Claims Settlement Act of 1949 (22 U.S.C. 1621-1627 and 
1645-1645o) shall apply with respect to claims under this Act.

SEC. 3. CLAIMS FUNDS.

    (a) Iraq Claims Fund.--The Secretary of the Treasury is authorized 
to establish in the Treasury of the United States a fund (hereafter in 
this Act referred to as the ``Iraq Claims Fund'') for payment of claims 
under section 2(a). The Secretary of the Treasury shall cover into the 
Iraq Claims Fund such amounts as are allocated to such fund pursuant to 
subsection (b).
    (b) Allocation of Proceeds From Iraqi Asset Liquidation.--
            (1) In general.--The President shall allocate funds 
        resulting from the liquidation of assets pursuant to section 4 
        in the manner the President determines appropriate between the 
        Iraq Claims Fund and such other accounts as are appropriate for 
        the payment of claims of the United States Government, subject 
        to the limitation in paragraph (2).
            (2) Limitation.--The amount allocated pursuant to this 
        subsection for payment of claims of the United States 
        Government may not exceed the amount which bears the same 
        relation to the amount allocated to the Iraq Claims Fund 
        pursuant to this subsection as the sum of all certified claims 
        of the United States Government bears to the sum of all claims 
        certified under section 2(a). As used in this paragraph, the 
        term ``certified claims of the United States Government'' means 
        those claims of the United States Government which are 
        determined by the Secretary of State to be outside the 
        jurisdiction of the United Nations Commission and which are 
        determined to be valid, and whose amount has been certified, 
        under such procedures as the President may establish.

SEC. 4. AUTHORITY TO VEST IRAQI ASSETS.

    The President is authorized to vest and liquidate as much of the 
assets of the Government of Iraq in the United States that have been 
blocked pursuant to the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) as may be necessary to satisfy claims under 
section 2(a), as well as claims of the United States Government against 
Iraq which are determined by the Secretary of State to be outside the 
jurisdiction of the United Nations Commission.

SEC. 5. REIMBURSEMENT FOR ADMINISTRATIVE EXPENSES.

    (a) Deduction.--In order to reimburse the United States Government 
for its expenses in administering this Act, the Secretary of the 
Treasury shall deduct 1.5 percent of any amount covered into the Iraq 
Claims Fund.
    (b) Deductions Treated as Miscellaneous Receipts.--Amounts deducted 
pursuant to subsection (a) shall be deposited in the Treasury of the 
United States as miscellaneous receipts.

SEC. 6. PAYMENTS.

    (a) In General.--The United States Commission shall certify to the 
Secretary of the Treasury each award made pursuant to section 2. The 
Secretary of the Treasury shall make payment, out of the Iraq Claims 
Fund, in the following order of priority to the extent funds are 
available in such fund:
            (1) Payment of $10,000 or the principal amount of the 
        award, whichever is less.
            (2) For each claim that has priority under section 2(c), 
        payment of a further $90,000 toward the unpaid balance of the 
        principal amount of the award.
            (3) Payments from time to time in ratable proportions on 
        account of the unpaid balance of the principal amounts of all 
        awards according to the proportions which the unpaid balance of 
        such awards bear to the total amount in the Iraq Claims Fund 
        that is available for distribution at the time such payments 
        are made.
            (4) After payment has been made of the principal amounts of 
        all such awards, pro rata payments on account of accrued 
        interest on such awards as bear interest.
            (5) After payment has been made in full of all the awards 
        payable out of the Iraq Claims Fund, any funds remaining in 
        that fund shall be transferred to the general fund of the 
        Treasury of the United States.
    (b) Unsatisfied Claims.--Payment of any award made pursuant to this 
Act shall not extinguish any unsatisfied claim, or be construed to have 
divested any claimant, or the United States on his or her behalf, of 
any rights against the Government of Iraq with respect to any 
unsatisfied claim.

SEC. 7. AUTHORITY TO TRANSFER RECORDS.

    The head of any Executive agency may transfer or otherwise make 
available to the United States Commission such records and documents 
relating to claims authorized to be adjudicated by this Act as may be 
required by the United States Commission in carrying out its functions 
under this Act.

SEC. 8. STATUTE OF LIMITATIONS; DISPOSITION OF UNUSED FUNDS.

    (a) Statute of Limitations.--Any demand or claim for payment on 
account of an award that is certified under this Act shall be barred 
one year after the publication date of the notice required by 
subsection (b).
    (b) Publication of Notice.--
            (1) In general.--At the end of the 9-year period specified 
        in paragraph (2), the Secretary of the Treasury shall publish a 
        notice in the Federal Register detailing the statute of 
        limitations provided for in subsection (a) and identifying the 
        claim numbers and awardee names of unpaid certified claims.
            (2) Publication date.--The notice required by paragraph (1) 
        shall be published 9 years after the last date on which the 
        Secretary of the Treasury covers into the Iraq Claims Fund 
        amounts allocated to that fund pursuant to section 3(b).
    (c) Disposition of Unused Funds.--
            (1) Disposition.--At the end of the 2-year period beginning 
        on the publication date of the notice required by subsection 
        (b), the Secretary of the Treasury shall dispose of all unused 
        funds described in paragraph (2) by depositing in the Treasury 
        of the United States as miscellaneous receipts any such funds 
        that are not used for such additional payments.
            (2) Unused funds.--The unused funds referred to in 
        paragraph (1) are any remaining balance in the Iraq Claims 
        Fund.

SEC. 9. DEFINITIONS.

    As used in this Act:
            (1) Executive agency.--The term ``Executive agency'' has 
        the meaning given that term by section 105 of title 5, United 
        States Code.
            (2) Government of iraq.--The term ``Government of Iraq'' 
        includes agencies, instrumentalities, and controlled entities 
        (including public sector enterprises) of that government.
            (3) United nations commission.--The term ``United Nations 
        Commission'' means the United Nations Compensation Commission 
        established pursuant to United Nations Security Council 
        Resolution 687 (1991).
            (4) United states commission.--The term ``United States 
        Commission'' means the Foreign Claims Settlement Commission of 
        the United States.

Summary: Gulf War Veterans' Iraqi Claims Protection Act of 1998 - Authorizes the Foreign Claims Settlement Commission of the United States (U.S. Commission) to receive and determine the validity of claims by U.S. nationals against the Government of Iraq, giving first priority to non-commercial claims of members of the U.S. armed forces and other individuals arising out of Iraq's invasion and occupation of Kuwait, or out of the 1987 attack on the USS Stark. 
Authorizes the Secretary of the Treasury to establish in the Treasury an Iraq Claims Fund for the payment of such claims. Authorizes the President, subject to specified limitations, to vest and liquidate Iraqi Government assets in the United States that have been blocked pursuant to the International Emergency Economic Powers Act, and allocate the proceeds to the Fund to satisfy claims against the Government of Iraq by U.S. nationals, as well as claims of the U.S. Government that are outside the jurisdiction of the United Nations Compensation Commission.  Provides for the reimbursement to the U.S. Government of expenses incurred in administering this Act.  Establishes an order of priority for payment of claims. 
Directs the U.S. Commission to certify to the Secretary each award made under this Act.  Sets forth a ten-year statute of limitations on any demand or claim for the payment of such an award.