Artsakh Revenue Recovery Act of 2024

Bill: 118-hr-9666
Sponsor: full_name: Rep. Schiff, Adam B. [D-CA-28]
Introduced: 2024-09-18
Policy area: International Affairs
Latest action: action_date: 2024-09-18
text: 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.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 9666 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. Sánchez , 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.

1. Short title This Act may be cited as the Artsakh Revenue Recovery Act of 2024 . 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. 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. 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. 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 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. 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. 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. 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.