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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.
<all>
Introduced in House
Introduced in House
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.
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.
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