Notice of Planned Methodology for Estimating Lump Sum Catch-Up Payments to Eligible 1983 Beirut Barracks Bombing Victims and 1996 Khobar Towers Bombing Victims; Request for Comment, 89693-89696 [2023-28674]
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ACTION:
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[FR Doc. 2023–28668 Filed 12–27–23; 8:45 am]
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GOVERNMENT ACCOUNTABILITY
OFFICE
Notice of Planned Methodology for
Estimating Lump Sum Catch-Up
Payments to Eligible 1983 Beirut
Barracks Bombing Victims and 1996
Khobar Towers Bombing Victims;
Request for Comment
Government Accountability
Office (GAO).
ACTION: Notice of planned methodology
for estimating lump sum catch-up
payments; request for comment.
AGENCY:
GAO is now accepting
comments on our notice of planned
methodology for estimating potential
lump sum catch-up payments to certain
1983 Beirut Barracks bombing victims
and certain 1996 Khobar Towers
bombing victims who have submitted
eligible claims for payment to the
United States Victims of State
Sponsored Terrorism Fund. We invite
comments on all aspects of the planned
methodologies proposed in this notice.
GAO is publishing this notice pursuant
to of the requirements of the Fairness
For 9/11 Families Act (Fairness Act).
Comments should be sent to the email
address below.
DATES: Interested persons are invited to
submit comments on or before January
28, 2024.
ADDRESSES: Submit comments to
FundPaymentComments@gao.gov or by
U.S. mail to Ms. Triana McNeil at 441
G Street NW, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT:
David Lutter, at (202) 512–7500 or
LutterD@gao.gov if you need additional
information. For general information,
contact GAO’s Office of Public Affairs,
202–512–4800.
SUPPLEMENTARY INFORMATION: Pursuant
to sec. 101 of Fairness For 9/11 Families
Act (Fairness Act), GAO is publishing
this notice of estimated potential lump
SUMMARY:
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sum catch-up payments to certain 1983
Beirut Barracks bombing victims and
certain 1996 Khobar Towers bombing
victims who have submitted eligible
claims to the United States Victims of
State Sponsored Terrorism Fund (Fund),
on or after December 29, 2022, and by
June 27, 2023.1
For purposes of the Fund, the term
‘‘claim’’ generally refers to a claim based
on compensatory damages awarded to a
United States person in a final
judgment.2 These judgments are issued
by a United States district court under
state or federal law against a foreign
state that has been designated a state
sponsor of terrorism and arising from
acts of international terrorism.3 In
general, a claim is determined eligible
for payment from the Fund if the
Special Master determines that the
judgment holder (referred to as a
‘‘claimant’’) is a United States person,
that the claim at issue meets the
definition of claim above, and that the
claim was submitted timely.4 All
decisions made by the Special Master
with regard to compensation from the
Fund are final and not subject to
administrative or judicial review.5 As of
January 2023, the Fund has allocated to
all eligible claimants approximately
$3.4 billion in four payment rounds,
which were authorized in 2017, 2019,
2020, and 2023. The Fund was
established in 2015 by the Justice for
United States Victims of State
Sponsored Terrorism Act (Victims
1 Public Law 117–328, div. MM, 136 Stat. 4459,
6106–6111 (classified as amended at 34 U.S.C.
20144(d)(4)(D)). Other 1983 Beirut Barracks
bombing victims and 1996 Khobar Towers bombing
victims have applied to and been determined
eligible for payment from the Fund in prior rounds.
Section 101 directs us to estimate catch-up
payments for those who submitted eligible claims
to the Fund between the date of enactment
(December 29, 2022), and June 27, 2023, which is
the date the application period closed for catch-up
payments. In general, the deadline for submitting a
claim to the Fund is not later than 90 days after
obtaining a final judgment. However, the Fairness
Act reopened the application period for 1983 Beirut
Barracks bombing victims and 1996 Khobar Towers
bombing victims awarded final judgments before
December 29, 2022, providing that these victims
had 180 days from the date of enactment of the
Fairness Act (June 27, 2023) to submit an
application for payment to the Fund. 34 U.S.C.
20144(c)(3)(A)(ii).
2 34 U.S.C. 20144(c)(2).
3 34 U.S.C. 20144(c)(2).
4 34 U.S.C. 20144(c)(1).
5 See 34 U.S.C. 20144(b)(3). Although not subject
to administrative or judicial review, a claimant
whose claim is denied in whole or in part by the
Special Master may request a hearing before the
Special Master not later than 30 days after receipt
of a written decision. Id. 20144(b)(4). Not later than
90 days after any such hearing, the Special Master
must issue a final written decision affirming or
amending the original decision, and that written
decision is final and nonreviewable. Id.
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Act).6 At the time of enactment, the
Victims Act allowed plaintiffs in two
identified lawsuits, In Re 650 Fifth
Avenue and Related Properties and
Peterson v. Islamic Republic of Iran
(Peterson) 7 to elect to participate in the
Fund and assign any and all rights, title,
and interest in the actions for the
purposes of participating in the Fund.8
Plaintiffs in these actions who did not
elect to participate in the Fund were
also permitted to submit an application
for conditional payment from the Fund
in which initial payment amounts
would be determined and set aside,
pending a final determination in these
actions.9 In the event that a final
judgment was entered in favor of the
plaintiffs in the actions and funds were
distributed, the payments allocated to
claimants who applied for a conditional
payment were to be considered void,
and any funds previously allocated to
such conditional payments be made
available and distributed to all other
eligible claimants.10 A final judgment in
favor of plaintiffs in Peterson was
entered, appealed to the United States
Court of Appeals for the Second Circuit,
and ultimately affirmed by the United
States Supreme Court on April 20,
2016.11 Distributions to the judgment
creditor plaintiffs in Peterson
commenced on October 19, 2016.12
Accordingly, conditional claimants who
were judgment creditors in Peterson did
not receive award payments, and the
Fund did not include them in award
calculations in 2017 for the first round
of payments or subsequent payment
rounds.13 These conditional claimants
6 Public Law 114–113, div. O, tit. IV, sec. 404, 129
Stat. 2242, 3007–3017 (classified as amended at 34
U.S.C. 20144(d)(4)(C)).
7 In Re 650 Fifth Avenue and Related Properties,
No. 08 Civ. 10934 (S.D.N.Y. filed Dec. 17, 2008) and
Peterson v. Islamic Republic of Iran, No. 10 Civ.
4518 (S.D.N.Y.).
8 Public Law 114–113, 129 Stat. at 3013.
9 Public Law 114–113, 129 Stat. at 3013–14.
10 Id. at 3014. In the event of an adverse final
judgment in Peterson or In Re 650 Fifth Avenue and
Related Properties, the Special Master was to
release a portion of an eligible claimant’s
conditional payment to such eligible claimant if the
Special Master anticipates that such claimant will
receive less than the amount of the conditional
payment from any proceeds from the final judgment
that is entered in favor of the plaintiffs. Id. Such
portion shall not exceed the difference between the
amount of the conditional payment and the amount
the Special Master anticipates such claimant will
receive from the proceeds. Id.
11 See Bank Markazi aka Central Bank of Iran v.
Peterson, 578 U.S. 212 (2016); U.S. Victims of State
Sponsored Terrorism Fund, ‘‘Supplemental Report
from the Special Master,’’ at 6 (August 2017).
12 U.S. Victims of State Sponsored Terrorism
Fund, ‘‘Supplemental Report from the Special
Master,’’ at 6 (August 2017).
13 Id. There were 78 conditional claimants who
were Peterson judgment creditors who fell into this
category. Id.
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include 1983 Beirut Barracks bombing
victims and 1996 Khobar Towers
bombing victims.
The Victims Act outlines minimum
payment requirements in which any
applicant with an eligible claim who
has received, or is entitled or scheduled
to receive, any payment that is equal to,
or in excess of, 30 percent of the total
compensatory damages owed on the
applicant’s claim from any source other
than the Fund 14 shall not receive any
payment from the Fund until all other
eligible applicants have received from
the Fund an amount equal to 30 percent
of the compensatory damages awarded
to those applicants pursuant to their
final judgments.15 The Fairness Act
amended the Victims Act to provide
that the minimum payment
requirements include the total amount
received by applicants who are 1983
Beirut Barracks bombing victims or
1996 Khobar Towers bombing victims as
a result of or in connection with
Peterson or In Re 650 Fifth Avenue and
Related Properties.16 It further provides
that any such applicant who has
received or is entitled or scheduled to
receive 30 percent or more of such
applicant’s compensatory damages
judgment as a result of or in connection
with such proceedings shall not receive
any payment from the Fund, except as
consistent with minimum payment
requirements or as part of a lump sum
catch-up payment under section 101 of
the Fairness Act.17
Section 101 of the Fairness Act
contains a provision for GAO to conduct
an audit and publish a notice estimating
potential lump sum catch-up payments
for 1983 Beirut Barracks bombing
victims and 1996 Khobar Towers
bombing victims who submitted eligible
applications to the Fund on or after
December 29, 2022, and by June 27,
2023.18 This section also established a
lump sum catch-up payment reserve
fund within the Fund and appropriated
14 Claimants are required to provide the Special
Master with information regarding compensation
from any source other than this Fund that the
claimant (or, in the case of a personal
representative, the victim’s beneficiaries) has
received or is entitled or scheduled to receive as a
result of the act of international terrorism that gave
rise to a claimant’s final judgment, including
information identifying the amount, nature, and
source of such compensation. 34 U.S.C.
20144(b)(2)(B).
15 34 U.S.C. 20144(d)(3)(B)(i).
16 34 U.S.C. 20144(d)(3)(B)(iii).
17 34 U.S.C. 20144(d)(3)(B)(iii).
18 34 U.S.C. 20144(d)(4)(D)(i). As discussed in
footnote 1, section 101 directs us to estimate catchup payments for those who submitted eligible
claims to the Fund between the date of enactment
(December 29, 2022), and June 27, 2023, which is
the date the application period closed for catch-up
payments. See 34 U.S.C. 20144(c)(3)(A)(ii).
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$3 billion to this reserve fund.19
Specifically, we are publishing for
comment our methodology for
estimating lump sum catch-up
payments for eligible 1983 Beirut
Barracks bombing victims and 1996
Khobar Towers bombing victims in
‘‘amounts that, after receiving the lump
sum catch-up payments, would result in
the percentage of the claims of such
victims received from the Fund being
equal to the percentage of the claims of
non-9/11 victims of state sponsored
terrorism received from the Fund, as of
the date of enactment.’’ 20 For the
purposes of this analysis and consistent
with the Fairness Act, ‘‘1983 Beirut
Barracks bombing victim’’ means ‘‘a
plaintiff, or estate or successor in
interest thereof, who has an eligible
claim to the Fund that arises out of the
October 23, 1983, bombing of the United
States Marine Corps Barracks in Beirut,
Lebanon, and includes a plaintiff, estate,
or successor in interest who is a
judgment creditor in Peterson v. Islamic
Republic of Iran or a settling judgment
creditor as identified in the order dated
May 27, 2014, in In Re 650 Fifth Avenue
& Related Properties.’’ 21 The term
‘‘1996 Khobar Towers bombing victim’’
means ‘‘a plaintiff, or estate or successor
in interest thereof, who has an eligible
claim to the Fund that arises out of the
June 25, 1996 bombing of the Khobar
Tower housing complex in Saudi
Arabia, and includes a plaintiff, estate,
or successor in interest who is a
judgment creditor in Peterson v. Islamic
Republic of Iran or a settling judgment
creditor as identified in the order dated
May 27, 2014, in In Re 650 Fifth Avenue
& Related Properties.’’ 22
19 34 U.S.C. 20144(d)(4)(D)(iv). The Fairness Act
directed the Special Master to authorize lump sum
catch-up payments to 9/11 victims, spouses and
dependents in amounts equal to those previously
estimated by GAO. GAO, U.S. Victims of State
Sponsored Terrorism Fund: Estimated Lump Sum
Catch-Up Payments, GAO–21–105306 (Aug. 11,
2021). Additionally, not earlier than 90 days and
not later than 1 year after submission of the report
that is to follow this notice the Special Master is
to authorize lump sum catch-up payments from the
reserve fund in amounts equal to those estimated
by GAO. 34 U.S.C. 20144(d)(4)(D)(iv)(II).
20 34 U.S.C. 20144(d)(4)(D)(i). Further, section
101 provides for GAO to conduct this audit in
accordance with 34 U.S.C. 20144(d)(3)(A), which
generally requires that distributions be made on a
pro rata basis and also places limits on the amount
of eligible claims (referred to as ‘‘statutory caps’’).
For example, for individuals, the cap is $20,000,000
and for claims of non-9/11 family members when
aggregated, the cap is $35,000,000. As such, we
plan to use data from the Fund, to the extent
available, on the claim amounts after the
application of statutory caps.
21 34 U.S.C. 20144(j)(15).
22 34 U.S.C. 20144(j)(16).
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Methodology To Produce Estimates for
Lump Sum Catch-Up Payments
To estimate the amount(s) called for
in section 101, GAO will utilize data
from the Fund on the following
amounts: (1) payments from the Fund
received by non-9/11 claimants in the
first through fourth payment rounds; 23
(2) net eligible claims 24 of these non-9/
11 claimants in the first through fourth
payment rounds; (3) net eligible
claims 25 of the 1983 Beirut Barracks
bombing victims and 1996 Khobar
Towers bombing victims who were
deemed eligible by the Fund and
applied between December 29, 2022,
and June 27, 2023; 26 and (4)
compensation from other sources 27
23 As discussed in footnote 1, this includes some
1983 Beirut Barracks bombing victims and 1996
Khobar Towers bombing victims who applied to
and received payment from the Fund in prior
rounds. If claimants applied to the Fund more than
once, they only appear in the data we received the
first time they applied and were determined
eligible. For example, the data we received show 12
claimants of the 1983 Beirut Barracks bombing or
1996 Khobar Towers bombing attacks who received
a payment in round 1, 141 in round 2, 423 in round
3, and 708 in round 4.
24 For the purposes of our analysis, ‘‘net eligible
claims’’ refers to the monetary amount of all eligible
claims after the application of statutory caps by the
Fund, if applicable. 34 U.S.C. 20144(d)(3)(A). In
accordance with GAO standards, we will assess the
reliability and completeness of the data from the
Fund to ensure that it is appropriate for these
purposes.
25 As of December 2023, data from the Fund on
the claim amounts after the application of statutory
caps (‘‘net eligible claims’’) for 1983 Beirut Barracks
bombing victims and 1996 Khobar Towers bombing
victims who are potentially eligible for lump sum
catch-up payments was not available. This is
because these claimants have not yet been included
in a payment distribution that would require the
application of statutory caps by the Fund. While we
have data from the Fund on compensatory damages
awards, we do not yet have the data with claim
amounts after the application of statutory caps. We
plan to work with the Fund to generate these data
and to incorporate these updated claim amounts
into our analysis when available.
26 We received data from the Fund as of December
2023 for 1,362 claimants for the 1983 Beirut
barracks bombing and 159 claimants for the 1996
Khobar Towers bombing who were deemed eligible
by the Fund and applied between December 29,
2022, and June 27, 2023. We also received data on
60 victims of these attacks whose eligibility for the
Fund is still being determined as of November
2023. These applications are pending because the
Fund is awaiting additional documentation from
these individuals that is needed to determine their
claims’ eligibility. Some of these 1,581 claimants
may be judgment creditors in Peterson. We also
received data from the Fund on the 78 conditional
claimants who are Peterson judgment creditors
discussed in footnote 13. Because eligibility for
some of these victims is still being determined, we
refer to the group as a whole as ‘‘potentially
eligible’’ for catch-up payments.
27 Claimants are required to provide the Special
Master with information regarding compensation
from any source other than this Fund that the
claimant (or, in the case of a personal
representative, the victim’s beneficiaries) has
received or is entitled or scheduled to receive as a
result of the act of international terrorism that gave
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89695
received by the 1983 Beirut Barracks
bombing victims and 1996 Khobar
Towers bombing victims who were
deemed eligible by the Fund and
applied between December 29, 2022,
and June 27, 2023.
Using these data, we estimated that
the amount of payments that non-9/11
claimants received, as a percentage of
their net eligible claims in the first four
rounds of Fund distributions, was
4.6122 percent (referred to as ‘‘GAO
percentage calculation’’). To estimate
GAO’s payment percentage, we
determined the payment amounts
received by non-9/11 claimants from the
Fund in the first through fourth
payment rounds. Next, we determined
the net eligible claims of these non-9/11
claimants in each round. We divided
the amount of payments by the net
eligible claims to determine GAO’s
percentage calculation.
Using the GAO percentage
calculation, we plan to estimate two
amounts for purposes of the second
notice: (1) the total amount needed to
provide lump sum catch-up payments to
potentially eligible 1983 Beirut Barracks
bombing victims and 1996 Khobar
Towers bombing victims based on these
victims’ net eligible claims; and (2) the
total amount needed to provide lump
sum catch-up payments to potentially
eligible 1983 Beirut Barracks bombing
victims and 1996 Khobar Towers
bombing victims based on these victims’
net eligible claims offset by
compensation from other sources.28 In
the data provided, 1,417 of the
potentially eligible 1983 Beirut Barracks
bombing victims and 1996 Khobar
Towers bombing victims have reported
compensation from other sources, such
as court-awarded compensation.29
After consideration of the comments
from this notice, we will issue a second
rise to a claimant’s final judgment, including
information identifying the amount, nature, and
source of such compensation. 34 U.S.C.
20144(b)(2)(B). We received data from the Fund on
compensation from other sources for claimants who
are potentially eligible for catch-up payments.
28 In our prior work, we did not offset eligible 9/
11 victims, spouses and dependents’ net eligible
claims with compensation from other sources
because this population did not have qualifying
compensation from other sources. Although some
9/11 claimants may have received awards from the
9/11 Victims Compensation Fund (VCF), money
received from the VCF is not considered an offset
for the Fund’s award calculations. See U.S. Victims
of State Sponsored Terrorism Fund, Frequently
Asked Questions, https://www.usvsst.com/faq.php
(last accessed Dec. 4, 2023) (see 4.8 *Updated*
What is a source of compensation other than the
USVSST Fund?).
29 According to Fund data, compensation from
other sources received by potentially eligible 1983
Beirut Barracks bombing victims and 1996 Khobar
Towers bombing victims range from $0 to
approximately $5 million.
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CE24–013, Research Grants to Identify
Effective Community-Based Strategies
for Overdose Prevention (R01).
Dates: March 12–14, 2024.
Times: 8:30 a.m.–5 p.m., EDT.
The meeting is closed to the public.
FOR FURTHER INFORMATION CONTACT:
Aisha L. Wilkes, M.P.H., Scientific
Review Officer, National Center for
Injury Prevention and Control, Centers
for Disease Control and Prevention,
Notice is hereby given of a change in
the meeting of the Disease, Disability,
and Injury Prevention and Control
Special Emphasis Panel (SEP)—CE22–
003, Rigorously Evaluating Programs
and Policies to Prevent Child Sexual
Abuse (CSA); April 11, 2024, 8:30 a.m.–
5 p.m., EDT, videoconference, in the
original Federal Register notice. The
meeting notice was published in the
Federal Register on November 2, 2023,
Volume 88, Number 211, page 75287.
The notice is being amended to
change the start time to 10:30 a.m. The
notice should read as follows:
Name of Committee: Disease,
Disability, and Injury Prevention and
Control Special Emphasis Panel (SEP)—
CE22–003, Rigorously Evaluating
Programs and Policies to Prevent Child
Sexual Abuse (CSA).
Date: April 11, 2024.
Time: 10:30 a.m.–5 p.m., EDT.
The meeting is closed to the public.
FOR FURTHER INFORMATION CONTACT:
Aisha L. Wilkes, M.P.H., Scientific
Review Officer, National Center for
Injury Prevention and Control, Centers
for Disease Control and Prevention,
4770 Buford Highway NE, Mailstop
S106–9, Atlanta, Georgia 30341.
Federal Register notice, utilizing data
from the Fund to report estimated lump
sum catch-up payments based on these
methodologies with any changes we
determine appropriate. We invite
comments on all aspects of the planned
methodologies proposed in this notice.
After consideration of the comments
from this notice, we will again seek
public comment on the second Federal
Register notice.
Authority: Pub. L. 117–328, div. MM,
136 Stat. 4459, 6106–6111 (34 U.S.C.
20144(d)(4)(D)).
Triana McNeil,
Director, Homeland Security and Justice, U.S.
Government Accountability Office.
[FR Doc. 2023–28674 Filed 12–27–23; 8:45 am]
BILLING CODE 1610–02–P
khammond on DSKJM1Z7X2PROD with NOTICES
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Notice is hereby given of a change in
the meeting of the Disease, Disability,
and Injury Prevention and Control
Special Emphasis Panel (SEP)—CE24–
034, Rigorous Evaluation of Policies for
their Impacts on the Primary Prevention
of Multiple Forms of Violence; February
27, 2024, 8 a.m.–5 p.m., EST, web
conference, in the original Federal
Register notice. The meeting notice was
published in the Federal Register on
October 24, 2023, Volume 88, Number
204, page 73020.
The notice is being amended to
change the date to a two-day meeting
and to change the times. The notice
should read as follows:
Name of Committee: Disease,
Disability, and Injury Prevention and
Control Special Emphasis Panel (SEP)—
CE24–034, Rigorous Evaluation of
Policies for their Impacts on the Primary
Prevention of Multiple Forms of
Violence.
Dates: February 27–28, 2024.
Times: 8:30 a.m.–5:30 p.m., EST.
The meeting is closed to the public.
FOR FURTHER INFORMATION CONTACT:
Carlisha Gentles, Pharm.D., B.C.P.S.,
C.D.C.E.S., Scientific Review Officer,
National Center for Injury Prevention
and Control, Centers for Disease Control
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]]>Agencies
[Federal Register Volume 88, Number 248 (Thursday, December 28, 2023)]
[Notices]
[Pages 89693-89696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28674]
=======================================================================
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GOVERNMENT ACCOUNTABILITY OFFICE
Notice of Planned Methodology for Estimating Lump Sum Catch-Up
Payments to Eligible 1983 Beirut Barracks Bombing Victims and 1996
Khobar Towers Bombing Victims; Request for Comment
AGENCY: Government Accountability Office (GAO).
ACTION: Notice of planned methodology for estimating lump sum catch-up
payments; request for comment.
-----------------------------------------------------------------------
SUMMARY: GAO is now accepting comments on our notice of planned
methodology for estimating potential lump sum catch-up payments to
certain 1983 Beirut Barracks bombing victims and certain 1996 Khobar
Towers bombing victims who have submitted eligible claims for payment
to the United States Victims of State Sponsored Terrorism Fund. We
invite comments on all aspects of the planned methodologies proposed in
this notice. GAO is publishing this notice pursuant to of the
requirements of the Fairness For 9/11 Families Act (Fairness Act).
Comments should be sent to the email address below.
DATES: Interested persons are invited to submit comments on or before
January 28, 2024.
ADDRESSES: Submit comments to [email protected] or by U.S.
mail to Ms. Triana McNeil at 441 G Street NW, Washington, DC 20548.
FOR FURTHER INFORMATION CONTACT: David Lutter, at (202) 512-7500 or
[email protected] if you need additional information. For general
information, contact GAO's Office of Public Affairs, 202-512-4800.
SUPPLEMENTARY INFORMATION: Pursuant to sec. 101 of Fairness For 9/11
Families Act (Fairness Act), GAO is publishing this notice of estimated
potential lump
[[Page 89694]]
sum catch-up payments to certain 1983 Beirut Barracks bombing victims
and certain 1996 Khobar Towers bombing victims who have submitted
eligible claims to the United States Victims of State Sponsored
Terrorism Fund (Fund), on or after December 29, 2022, and by June 27,
2023.\1\
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\1\ Public Law 117-328, div. MM, 136 Stat. 4459, 6106-6111
(classified as amended at 34 U.S.C. 20144(d)(4)(D)). Other 1983
Beirut Barracks bombing victims and 1996 Khobar Towers bombing
victims have applied to and been determined eligible for payment
from the Fund in prior rounds. Section 101 directs us to estimate
catch-up payments for those who submitted eligible claims to the
Fund between the date of enactment (December 29, 2022), and June 27,
2023, which is the date the application period closed for catch-up
payments. In general, the deadline for submitting a claim to the
Fund is not later than 90 days after obtaining a final judgment.
However, the Fairness Act reopened the application period for 1983
Beirut Barracks bombing victims and 1996 Khobar Towers bombing
victims awarded final judgments before December 29, 2022, providing
that these victims had 180 days from the date of enactment of the
Fairness Act (June 27, 2023) to submit an application for payment to
the Fund. 34 U.S.C. 20144(c)(3)(A)(ii).
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For purposes of the Fund, the term ``claim'' generally refers to a
claim based on compensatory damages awarded to a United States person
in a final judgment.\2\ These judgments are issued by a United States
district court under state or federal law against a foreign state that
has been designated a state sponsor of terrorism and arising from acts
of international terrorism.\3\ In general, a claim is determined
eligible for payment from the Fund if the Special Master determines
that the judgment holder (referred to as a ``claimant'') is a United
States person, that the claim at issue meets the definition of claim
above, and that the claim was submitted timely.\4\ All decisions made
by the Special Master with regard to compensation from the Fund are
final and not subject to administrative or judicial review.\5\ As of
January 2023, the Fund has allocated to all eligible claimants
approximately $3.4 billion in four payment rounds, which were
authorized in 2017, 2019, 2020, and 2023. The Fund was established in
2015 by the Justice for United States Victims of State Sponsored
Terrorism Act (Victims Act).\6\ At the time of enactment, the Victims
Act allowed plaintiffs in two identified lawsuits, In Re 650 Fifth
Avenue and Related Properties and Peterson v. Islamic Republic of Iran
(Peterson) \7\ to elect to participate in the Fund and assign any and
all rights, title, and interest in the actions for the purposes of
participating in the Fund.\8\ Plaintiffs in these actions who did not
elect to participate in the Fund were also permitted to submit an
application for conditional payment from the Fund in which initial
payment amounts would be determined and set aside, pending a final
determination in these actions.\9\ In the event that a final judgment
was entered in favor of the plaintiffs in the actions and funds were
distributed, the payments allocated to claimants who applied for a
conditional payment were to be considered void, and any funds
previously allocated to such conditional payments be made available and
distributed to all other eligible claimants.\10\ A final judgment in
favor of plaintiffs in Peterson was entered, appealed to the United
States Court of Appeals for the Second Circuit, and ultimately affirmed
by the United States Supreme Court on April 20, 2016.\11\ Distributions
to the judgment creditor plaintiffs in Peterson commenced on October
19, 2016.\12\ Accordingly, conditional claimants who were judgment
creditors in Peterson did not receive award payments, and the Fund did
not include them in award calculations in 2017 for the first round of
payments or subsequent payment rounds.\13\ These conditional claimants
include 1983 Beirut Barracks bombing victims and 1996 Khobar Towers
bombing victims.
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\2\ 34 U.S.C. 20144(c)(2).
\3\ 34 U.S.C. 20144(c)(2).
\4\ 34 U.S.C. 20144(c)(1).
\5\ See 34 U.S.C. 20144(b)(3). Although not subject to
administrative or judicial review, a claimant whose claim is denied
in whole or in part by the Special Master may request a hearing
before the Special Master not later than 30 days after receipt of a
written decision. Id. 20144(b)(4). Not later than 90 days after any
such hearing, the Special Master must issue a final written decision
affirming or amending the original decision, and that written
decision is final and nonreviewable. Id.
\6\ Public Law 114-113, div. O, tit. IV, sec. 404, 129 Stat.
2242, 3007-3017 (classified as amended at 34 U.S.C. 20144(d)(4)(C)).
\7\ In Re 650 Fifth Avenue and Related Properties, No. 08 Civ.
10934 (S.D.N.Y. filed Dec. 17, 2008) and Peterson v. Islamic
Republic of Iran, No. 10 Civ. 4518 (S.D.N.Y.).
\8\ Public Law 114-113, 129 Stat. at 3013.
\9\ Public Law 114-113, 129 Stat. at 3013-14.
\10\ Id. at 3014. In the event of an adverse final judgment in
Peterson or In Re 650 Fifth Avenue and Related Properties, the
Special Master was to release a portion of an eligible claimant's
conditional payment to such eligible claimant if the Special Master
anticipates that such claimant will receive less than the amount of
the conditional payment from any proceeds from the final judgment
that is entered in favor of the plaintiffs. Id. Such portion shall
not exceed the difference between the amount of the conditional
payment and the amount the Special Master anticipates such claimant
will receive from the proceeds. Id.
\11\ See Bank Markazi aka Central Bank of Iran v. Peterson, 578
U.S. 212 (2016); U.S. Victims of State Sponsored Terrorism Fund,
``Supplemental Report from the Special Master,'' at 6 (August 2017).
\12\ U.S. Victims of State Sponsored Terrorism Fund,
``Supplemental Report from the Special Master,'' at 6 (August 2017).
\13\ Id. There were 78 conditional claimants who were Peterson
judgment creditors who fell into this category. Id.
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The Victims Act outlines minimum payment requirements in which any
applicant with an eligible claim who has received, or is entitled or
scheduled to receive, any payment that is equal to, or in excess of, 30
percent of the total compensatory damages owed on the applicant's claim
from any source other than the Fund \14\ shall not receive any payment
from the Fund until all other eligible applicants have received from
the Fund an amount equal to 30 percent of the compensatory damages
awarded to those applicants pursuant to their final judgments.\15\ The
Fairness Act amended the Victims Act to provide that the minimum
payment requirements include the total amount received by applicants
who are 1983 Beirut Barracks bombing victims or 1996 Khobar Towers
bombing victims as a result of or in connection with Peterson or In Re
650 Fifth Avenue and Related Properties.\16\ It further provides that
any such applicant who has received or is entitled or scheduled to
receive 30 percent or more of such applicant's compensatory damages
judgment as a result of or in connection with such proceedings shall
not receive any payment from the Fund, except as consistent with
minimum payment requirements or as part of a lump sum catch-up payment
under section 101 of the Fairness Act.\17\
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\14\ Claimants are required to provide the Special Master with
information regarding compensation from any source other than this
Fund that the claimant (or, in the case of a personal
representative, the victim's beneficiaries) has received or is
entitled or scheduled to receive as a result of the act of
international terrorism that gave rise to a claimant's final
judgment, including information identifying the amount, nature, and
source of such compensation. 34 U.S.C. 20144(b)(2)(B).
\15\ 34 U.S.C. 20144(d)(3)(B)(i).
\16\ 34 U.S.C. 20144(d)(3)(B)(iii).
\17\ 34 U.S.C. 20144(d)(3)(B)(iii).
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Section 101 of the Fairness Act contains a provision for GAO to
conduct an audit and publish a notice estimating potential lump sum
catch-up payments for 1983 Beirut Barracks bombing victims and 1996
Khobar Towers bombing victims who submitted eligible applications to
the Fund on or after December 29, 2022, and by June 27, 2023.\18\ This
section also established a lump sum catch-up payment reserve fund
within the Fund and appropriated
[[Page 89695]]
$3 billion to this reserve fund.\19\ Specifically, we are publishing
for comment our methodology for estimating lump sum catch-up payments
for eligible 1983 Beirut Barracks bombing victims and 1996 Khobar
Towers bombing victims in ``amounts that, after receiving the lump sum
catch-up payments, would result in the percentage of the claims of such
victims received from the Fund being equal to the percentage of the
claims of non-9/11 victims of state sponsored terrorism received from
the Fund, as of the date of enactment.'' \20\ For the purposes of this
analysis and consistent with the Fairness Act, ``1983 Beirut Barracks
bombing victim'' means ``a plaintiff, or estate or successor in
interest thereof, who has an eligible claim to the Fund that arises out
of the October 23, 1983, bombing of the United States Marine Corps
Barracks in Beirut, Lebanon, and includes a plaintiff, estate, or
successor in interest who is a judgment creditor in Peterson v. Islamic
Republic of Iran or a settling judgment creditor as identified in the
order dated May 27, 2014, in In Re 650 Fifth Avenue & Related
Properties.'' \21\ The term ``1996 Khobar Towers bombing victim'' means
``a plaintiff, or estate or successor in interest thereof, who has an
eligible claim to the Fund that arises out of the June 25, 1996 bombing
of the Khobar Tower housing complex in Saudi Arabia, and includes a
plaintiff, estate, or successor in interest who is a judgment creditor
in Peterson v. Islamic Republic of Iran or a settling judgment creditor
as identified in the order dated May 27, 2014, in In Re 650 Fifth
Avenue & Related Properties.'' \22\
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\18\ 34 U.S.C. 20144(d)(4)(D)(i). As discussed in footnote 1,
section 101 directs us to estimate catch-up payments for those who
submitted eligible claims to the Fund between the date of enactment
(December 29, 2022), and June 27, 2023, which is the date the
application period closed for catch-up payments. See 34 U.S.C.
20144(c)(3)(A)(ii).
\19\ 34 U.S.C. 20144(d)(4)(D)(iv). The Fairness Act directed the
Special Master to authorize lump sum catch-up payments to 9/11
victims, spouses and dependents in amounts equal to those previously
estimated by GAO. GAO, U.S. Victims of State Sponsored Terrorism
Fund: Estimated Lump Sum Catch-Up Payments, GAO-21-105306 (Aug. 11,
2021). Additionally, not earlier than 90 days and not later than 1
year after submission of the report that is to follow this notice
the Special Master is to authorize lump sum catch-up payments from
the reserve fund in amounts equal to those estimated by GAO. 34
U.S.C. 20144(d)(4)(D)(iv)(II).
\20\ 34 U.S.C. 20144(d)(4)(D)(i). Further, section 101 provides
for GAO to conduct this audit in accordance with 34 U.S.C.
20144(d)(3)(A), which generally requires that distributions be made
on a pro rata basis and also places limits on the amount of eligible
claims (referred to as ``statutory caps''). For example, for
individuals, the cap is $20,000,000 and for claims of non-9/11
family members when aggregated, the cap is $35,000,000. As such, we
plan to use data from the Fund, to the extent available, on the
claim amounts after the application of statutory caps.
\21\ 34 U.S.C. 20144(j)(15).
\22\ 34 U.S.C. 20144(j)(16).
---------------------------------------------------------------------------
Methodology To Produce Estimates for Lump Sum Catch-Up Payments
To estimate the amount(s) called for in section 101, GAO will
utilize data from the Fund on the following amounts: (1) payments from
the Fund received by non-9/11 claimants in the first through fourth
payment rounds; \23\ (2) net eligible claims \24\ of these non-9/11
claimants in the first through fourth payment rounds; (3) net eligible
claims \25\ of the 1983 Beirut Barracks bombing victims and 1996 Khobar
Towers bombing victims who were deemed eligible by the Fund and applied
between December 29, 2022, and June 27, 2023; \26\ and (4) compensation
from other sources \27\ received by the 1983 Beirut Barracks bombing
victims and 1996 Khobar Towers bombing victims who were deemed eligible
by the Fund and applied between December 29, 2022, and June 27, 2023.
---------------------------------------------------------------------------
\23\ As discussed in footnote 1, this includes some 1983 Beirut
Barracks bombing victims and 1996 Khobar Towers bombing victims who
applied to and received payment from the Fund in prior rounds. If
claimants applied to the Fund more than once, they only appear in
the data we received the first time they applied and were determined
eligible. For example, the data we received show 12 claimants of the
1983 Beirut Barracks bombing or 1996 Khobar Towers bombing attacks
who received a payment in round 1, 141 in round 2, 423 in round 3,
and 708 in round 4.
\24\ For the purposes of our analysis, ``net eligible claims''
refers to the monetary amount of all eligible claims after the
application of statutory caps by the Fund, if applicable. 34 U.S.C.
20144(d)(3)(A). In accordance with GAO standards, we will assess the
reliability and completeness of the data from the Fund to ensure
that it is appropriate for these purposes.
\25\ As of December 2023, data from the Fund on the claim
amounts after the application of statutory caps (``net eligible
claims'') for 1983 Beirut Barracks bombing victims and 1996 Khobar
Towers bombing victims who are potentially eligible for lump sum
catch-up payments was not available. This is because these claimants
have not yet been included in a payment distribution that would
require the application of statutory caps by the Fund. While we have
data from the Fund on compensatory damages awards, we do not yet
have the data with claim amounts after the application of statutory
caps. We plan to work with the Fund to generate these data and to
incorporate these updated claim amounts into our analysis when
available.
\26\ We received data from the Fund as of December 2023 for
1,362 claimants for the 1983 Beirut barracks bombing and 159
claimants for the 1996 Khobar Towers bombing who were deemed
eligible by the Fund and applied between December 29, 2022, and June
27, 2023. We also received data on 60 victims of these attacks whose
eligibility for the Fund is still being determined as of November
2023. These applications are pending because the Fund is awaiting
additional documentation from these individuals that is needed to
determine their claims' eligibility. Some of these 1,581 claimants
may be judgment creditors in Peterson. We also received data from
the Fund on the 78 conditional claimants who are Peterson judgment
creditors discussed in footnote 13. Because eligibility for some of
these victims is still being determined, we refer to the group as a
whole as ``potentially eligible'' for catch-up payments.
\27\ Claimants are required to provide the Special Master with
information regarding compensation from any source other than this
Fund that the claimant (or, in the case of a personal
representative, the victim's beneficiaries) has received or is
entitled or scheduled to receive as a result of the act of
international terrorism that gave rise to a claimant's final
judgment, including information identifying the amount, nature, and
source of such compensation. 34 U.S.C. 20144(b)(2)(B). We received
data from the Fund on compensation from other sources for claimants
who are potentially eligible for catch-up payments.
---------------------------------------------------------------------------
Using these data, we estimated that the amount of payments that
non-9/11 claimants received, as a percentage of their net eligible
claims in the first four rounds of Fund distributions, was 4.6122
percent (referred to as ``GAO percentage calculation''). To estimate
GAO's payment percentage, we determined the payment amounts received by
non-9/11 claimants from the Fund in the first through fourth payment
rounds. Next, we determined the net eligible claims of these non-9/11
claimants in each round. We divided the amount of payments by the net
eligible claims to determine GAO's percentage calculation.
Using the GAO percentage calculation, we plan to estimate two
amounts for purposes of the second notice: (1) the total amount needed
to provide lump sum catch-up payments to potentially eligible 1983
Beirut Barracks bombing victims and 1996 Khobar Towers bombing victims
based on these victims' net eligible claims; and (2) the total amount
needed to provide lump sum catch-up payments to potentially eligible
1983 Beirut Barracks bombing victims and 1996 Khobar Towers bombing
victims based on these victims' net eligible claims offset by
compensation from other sources.\28\ In the data provided, 1,417 of the
potentially eligible 1983 Beirut Barracks bombing victims and 1996
Khobar Towers bombing victims have reported compensation from other
sources, such as court-awarded compensation.\29\
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\28\ In our prior work, we did not offset eligible 9/11 victims,
spouses and dependents' net eligible claims with compensation from
other sources because this population did not have qualifying
compensation from other sources. Although some 9/11 claimants may
have received awards from the 9/11 Victims Compensation Fund (VCF),
money received from the VCF is not considered an offset for the
Fund's award calculations. See U.S. Victims of State Sponsored
Terrorism Fund, Frequently Asked Questions, https://www.usvsst.com/faq.php (last accessed Dec. 4, 2023) (see 4.8 *Updated* What is a
source of compensation other than the USVSST Fund?).
\29\ According to Fund data, compensation from other sources
received by potentially eligible 1983 Beirut Barracks bombing
victims and 1996 Khobar Towers bombing victims range from $0 to
approximately $5 million.
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After consideration of the comments from this notice, we will issue
a second
[[Page 89696]]
Federal Register notice, utilizing data from the Fund to report
estimated lump sum catch-up payments based on these methodologies with
any changes we determine appropriate. We invite comments on all aspects
of the planned methodologies proposed in this notice. After
consideration of the comments from this notice, we will again seek
public comment on the second Federal Register notice.
Authority: Pub. L. 117-328, div. MM, 136 Stat. 4459, 6106-6111 (34
U.S.C. 20144(d)(4)(D)).
Triana McNeil,
Director, Homeland Security and Justice, U.S. Government Accountability
Office.
[FR Doc. 2023-28674 Filed 12-27-23; 8:45 am]
BILLING CODE 1610-02-P
