[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1332 Reported in House (RH)]





                                                 Union Calendar No. 227

104th CONGRESS

  2d Session

                               H. R. 1332

                          [Report No. 104-471]

_______________________________________________________________________

                                 A BILL

To establish certain policies and responsibilities with respect to the 
 administration of the Rongelap Resettlement Trust Fund, and for other 
                               purposes.

_______________________________________________________________________

                             March 5, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 227
104th CONGRESS
  2d Session
                                H. R. 1332

                          [Report No. 104-471]

To establish certain policies and responsibilities with respect to the 
 administration of the Rongelap Resettlement Trust Fund, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 28, 1995

    Mr. Gallegly (for himself and Mr. Faleomavaega) introduced the 
    following bill; which was referred to the Committee on Resources

                             March 5, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               28, 1995]

_______________________________________________________________________

                                 A BILL


 
To establish certain policies and responsibilities with respect to the 
 administration of the Rongelap Resettlement Trust Fund, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Omnibus Insular 
Areas Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.

                           TITLE I--RONGELAP

Sec. 101. Short title.
Sec. 102. Policy regarding assistance for resettlement of people of 
                            Rongelap.
Sec. 103. Responsibilities relating to Rongelap Resettlement Trust 
                            Fund.
Sec. 104. Trustee and other fund personnel.
Sec. 105. Resettlement expenditures and activities.
Sec. 106. Transfer of unexpended and unobligated funds.

                        TITLE II--AMERICAN SAMOA

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Authorization of funding.
Sec. 204. Establishment of trust.
Sec. 205. Uses of trust funds.
Sec. 206. Disbursement of trust funds.
Sec. 207. Audits.
Sec. 208. Audits by the United States.
Sec. 209. Settlement of disputes.
Sec. 210. Criminal Violations.
Sec. 211. Definitions.

        TITLE III--COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

Sec. 301. Termination of annual direct grant assistance.

           TITLE IV--TERRITORIAL ADMINISTRATIVE CESSATION ACT

Sec. 401. Short title.
Sec. 402. Congressional findings.
Sec. 403. Elimination of Office of Territorial and International 
                            Affairs.
Sec. 404. Certain activities not funded.

                           TITLE I--RONGELAP

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Rongelap Recovery and Community 
Self-Reliance Act''.

SEC. 102. POLICY REGARDING ASSISTANCE FOR RESETTLEMENT OF PEOPLE OF 
              RONGELAP.

    The purposes of this title are to improve the legal and policy 
framework for fulfillment of the objectives of section 103(i) of Public 
Law 99-239 (99 Stat. 1783) and to prescribe the manner in which the 
Rongelap Resettlement Trust Fund established pursuant to Public Law 
102-154 (105 Stat. 1009) shall be administered in order to achieve the 
goal of early and safe resettlement of the people of Rongelap. The 
measures set forth in this title are appropriate and necessary in light 
of the results of scientific studies on the habitability of Rongelap 
conducted pursuant to section 103(i) of Public Law 99-239 and are 
intended to enable the people of Rongelap to exercise greater self-
determination and local self-government, and to take control of their 
own destiny and become more self-reliant, through a resettlement 
program consistent with the wishes of the Rongelapese people 
themselves. United States assistance to the people of Rongelap for 
purposes of resettlement shall be as directed by Congress and will be 
completed upon determination by Congress that the United States has 
provided the total of its contribution to the rehabilitation of 
Rongelap Island and resettlement of the Rongelap people pursuant to 
section 103(i) of Public Law 99-239 and applicable provisions of Public 
Law 102-154. All such assistance shall be subject to the financial 
accountability provisions of this title and shall be provided within 
the framework of the government-to-government relationship between the 
Republic of the Marshall Islands and the United States as defined by 
the Compact of Free Association Act of 1985.

SEC. 103. RESPONSIBILITIES RELATING TO RONGELAP RESETTLEMENT TRUST 
              FUND.

    (a) Secretary of the Interior.--
            (1) Transfer of funds to trustee of rongelap resettlement 
        trust fund.--Consistent with the Rongelap Resettlement Trust 
        Fund agreement between the Department of the Interior, the 
        Republic of the Marshall Islands, and the Rongelap Atoll Local 
        Government, dated May 13, 1992, funds appropriated in any 
        fiscal year for the purpose of increasing the corpus of the 
        Rongelap Resettlement Trust Fund shall be transferred by the 
        Secretary of the Interior to the trustee thereof, and the 
        Department of the Interior shall be administratively 
        responsible for effecting all such transfers of funds 
        appropriated for this purpose as required by law.
            (2) Limitation of department of the interior activities to 
        those provided by trust fund agreement.--The activities of the 
        Department of the Interior with respect to management of the 
        Rongelap Resettlement Trust Fund shall be limited to those 
        provided for in the trust fund agreement referred to in 
        paragraph (1), as it may from time to time be amended.
    (b) Trustee.--
            (1) Duties, obligations and legal responsibilities.--The 
        duties, obligations and legal responsibilities of the trustee 
        with respect to the Rongelap Resettlement Trust Fund shall be 
        as set forth in the trust fund agreement referred to in 
        subsection (a)(1), to which the United States, the Republic of 
        the Marshall Islands and the Rongelap Atoll Local Government 
        are parties with legal rights and powers to enforce the terms 
        of the trust as set forth therein, and in applicable law.
            (2) Distribution of funds.--All funds contributed to the 
        Rongelap Resettlement Trust Fund referred to in subsection (a) 
        of this section shall be distributed by the trustee and used as 
        determined by the Rongelap Atoll Local Government consistent 
        with applicable provisions of this title, Public Law 102-154, 
        and the resettlement plan submitted to the United States 
        Congress on March 15, 1995, in accordance with Report 103-551 
        of the House of Representatives, and referred to in Rongelap 
        Atoll Local Government Council Resolution No. 95-20.
    (c) Audits.--
            (1) In general.--In addition, management or use of trust 
        assets shall be subject to the authority of the Comptroller 
        General of the United States to conduct financial audits of all 
        trust transactions and activities, in the same manner as 
        provided in section 110(c) of Public Law 99-239. The Inspector 
        General of the Department of the Interior also shall be 
        authorized to audit the use of Rongelap Resettlement Trust Fund 
        assets.
            (2) Notice regarding use of funds outside scope of trust.--
        If at any time it is determined by the cognizant audit 
        authority that funds distributed by the trustee to the Rongelap 
        Atoll Local Government have been used for purposes outside the 
        statutory scope of the trust, such audit authority shall, at a 
        time and in a manner which is lawful and does not interfere 
        with any ongoing investigative process, law enforcement 
        activity or other activities or operations required under 
        applicable regulations and procedures, notify the chairman of 
        the Committee on Energy and Natural Resources of the United 
        States Senate, the chairman of the Committee on Resources of 
        the United States House of Representatives, the Republic of the 
        Marshall Islands, the Rongelap Atoll Local Government, and the 
        trustee, of such determination so that the trustee and the 
        parties to the trust agreement may exercise their legal rights 
        and powers, including recovery of such funds.
    (d) Retention of United States Authority Over Trust Fund.--The 
United States Congress shall retain its authority over the trust fund 
as set forth in the trust agreement referred to in subsection (a)(1) 
and applicable statutes, including Public Law 102-154.

SEC. 104. TRUSTEE AND OTHER FUND PERSONNEL.

    (a) Trustee Qualifications.--The trustee of the Rongelap 
Resettlement Trust Fund shall be a qualified United States financial 
institution with considerable experience in the administration of 
similar trusts and which serves as the trustee manager or custodian of 
over $1,000,000,000 in assets. If the trustee on the date of enactment 
of this Act does not meet the qualification criteria, a new trustee 
which does satisfy these requirements shall in due course be appointed 
subject to the procedures set forth in the trust fund agreement 
referred to in section 103(a).
    (b) Investment Fund Managers and Advisers and Consultants.--
Investment fund managers and advisers or consultants designated by the 
Rongelap Atoll Local Government in accordance with the trust agreement 
to provide services in connection with management of the Rongelap 
Resettlement Trust Fund must be registered with the Securities and 
Exchange Commission and be in compliance with applicable provisions of 
the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.)

SEC. 105. RESETTLEMENT EXPENDITURES AND ACTIVITIES.

    (a) Activities.--The Rongelap Atoll Local Government shall have the 
discretion, to the extent determined by the Rongelap Atoll Local 
Government Council acting within its lawful authority, to include in 
the resettlement program activities described in the Memorandum of 
Understanding of February 21, 1992, between the Department of the 
Interior, Department of Energy, the Republic of the Marshall Islands, 
and the Rongelap Atoll Local Government.
    (b) Use of Annual Income.--
            (1) In general.--With respect to each fiscal year following 
        the establishment of the Rongelap Resettlement Trust Fund 
        pursuant to Public Law 102-154, the authority of the Rongelap 
        Atoll Local Government and the trustee, within the statutory 
        scope and purpose of the trust, shall include distribution of 
        up to 50 percent of the annual income (interest and earnings) 
        of the trust fund, but in no year more than $500,000, increased 
        in accordance with paragraph (2), to provide local government 
        support and programs for the benefit of the people of Rongelap, 
        including funding for food, shelter, medicine, infant care, 
        sanitation, personal hygiene and other basic human needs 
        arising from dislocation and adjustment during resettlement, as 
        well as local government administrative and operations costs 
        and expenses arising directly from or which are directly 
        connected to the resettlement process.
            (2) Adjustment.--The amount referred to in paragraph (1) 
        shall be increased annually by the same proportion as the 
        percentage increase in the United States Consumer Price Index 
        For All Urban Consumers (published by the Bureau of Labor 
        Statistics, Department of Labor) for the most recent year 
        preceding the date on which the increase, if any, is 
        calculated.
    (c) Availability of Assistance for Resettlement in the Marshall 
Islands Other Than on Rongelap.--
            (1) Goal of resettlement on rongelap.--The Congress 
        supports the goal of enabling the entire Rongelap community to 
        achieve resettlement in accordance with Resolution Number 95-20 
        adopted by the Rongelap Atoll Local Government Council on March 
        9, 1995, consistent with the findings of scientific studies 
        conducted pursuant to section 103(i) of Public Law 99-239 which 
        indicate that agreed upon radiation exposure limits can be met 
at Rongelap Island if certain risk mitigation measures are taken.
            (2) Resettlement assistance.--(A) To ensure that members of 
        the Rongelap community who do not choose to return to Rongelap 
        in light of these scientific findings are able to end their 
        dislocation and settle somewhere in the Marshall Islands, 
        assistance for construction of family housing and other 
        resettlement assistance may be provided to members of the 
        Rongelap community who elect to settle at a location in the 
        Marshall Islands other than Rongelap Atoll on the same basis as 
        assistance provided for those who elect to return to Rongelap, 
        subject to the authority and discretion of the Rongelap Atoll 
        Local Government to determine the schedule, terms, 
        specifications and scope of such assistance in the context of 
        the overall community resettlement program at Rongelap Atoll, 
        which shall remain the primary objective for management and use 
        of trust fund assets.
            (B) Assistance provided pursuant to subparagraph (A) to 
        those who elect to resettle at a place other than Rongelap 
        shall not include measures to be employed or benefits to be 
        provided for those resettling at Rongelap Atoll for the purpose 
        of mitigating risks posed by radiological conditions at 
        Rongelap.
            (C) Any Rongelapese person receiving assistance for 
        resettlement at a location other than Rongelap Atoll pursuant 
        to subparagraph (A) shall be ineligible for such assistance for 
        the purposes of resettling again later at Rongelap Atoll. The 
        preceding sentence shall cease to apply once all members of the 
        Rongelap community, as defined and recognized by the Nuclear 
        Claims Tribunal established pursuant to section 177 of the 
        Compact of Free Association (as contained in Public Law 99-
        239), have received resettlement assistance at Rongelap or 
        assistance on the same basis, except as provided in 
        subparagraph (B), at another location of their choosing.
            (3) Scope of trust.--The assistance activities authorized 
        in this section shall be deemed to be within the scope of the 
        trust notwithstanding any provision of Public Law 102-154 to 
        the contrary.
    (d) Food Importation.--The trustee of the Rongelap Resettlement 
Trust Fund shall make no distribution from the corpus of the Trust 
which as a matter of prudent financial management in the judgment of 
the trustee would be inconsistent with the objective of ensuring that 
funds will be available for as long as the trust fund agreement 
referred to in section 103(a)(1) is in effect for the purpose of 
providing imported food and locally produced food which meets relevant 
health and safety standards in amounts sufficient to meet the 
nutritional needs of the Rongelap community residing at Rongelap Atoll.

SEC. 106. TRANSFER OF UNEXPENDED AND UNOBLIGATED FUNDS.

    All funds appropriated pursuant to the authorization contained in 
section 103(i) of Public Law 99-239 for scientific radiological studies 
to determine the habitability of Rongelap Island in the Republic of the 
Marshall Islands, or which have been obligated for use by the 
``Rongelap Resettlement Project'' to support such studies, which as of 
the date of enactment of this Act have not been expended shall be 
transferred to the Rongelap Atoll Local Government and expended only 
pursuant to a budget approved by the Rongelap Local Government Council 
and for activities consistent with the purposes for which such funds 
were appropriated, including scientific research and island 
rehabilitation measures connected to resettlement of Rongelap.

                        TITLE II--AMERICAN SAMOA

SEC. 201. SHORT TITLE.

    This title may be cited as the ``American Samoa Economic 
Development Act of 1995''.

SEC. 202. FINDINGS.

    The Congress finds that--
            (1) funding for the United States territory of American 
        Samoa has been based on the joint resolution entitled ``Joint 
        Resolution to provide for accepting, ratifying, and confirming 
        cessions of certain islands of the Samoan group to the United 
        States, and for other purposes'', as amended (48 U.S.C. 1661), 
        with commitments being made on a yearly basis;
            (2) American Samoa is locally self-governing with a 
        constitution of its own adoption and the direct election of the 
        Governor since 1977;
            (3) the territory of American Samoa has had difficulty in 
        planning and implementing comprehensive and sustainable 
        infrastructure based solely on annual ad hoc grants; and
            (4) the territory of American Samoa and the United States 
        would benefit from a multiyear funding commitment which 
        promotes economic development and self-sufficiency and requires 
        compliance with financial management accounting standards, the 
        establishment of semiautonomous public utility authorities 
        utilizing cost-recovery principles, and the phaseout of Federal 
        subsidies for Government operations.

SEC. 203. AUTHORIZATION OF FUNDING.

    (a) In General.--There are authorized to be appropriated to the 
Secretary of the Interior for the Government of American Samoa 
$34,500,000, backed by the full faith and credit of the United States, 
for each of fiscal years 1996 through 2005. Such amounts shall not be 
released to the Government of American Samoa if the conditions in this 
title are not met, and are subject to the limits specified in the table 
in subsection (b), to be used for--
            (1) construction of capital assets of American Samoa;
            (2) the operations of the Government of American Samoa; and
            (3) reduction of unbudgeted debt.
    (b) Table of Multiyear Funding.--The table referred to in this 
subsection is as follows:

      

                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                                            Deficit             
                    Fiscal year                      Year #   Operations  Construction     reduction      Total 
                                                                                         (100% match)           
----------------------------------------------------------------------------------------------------------------
1996...............................................     1        23.0           8.5           3.0          34.5 
1997...............................................     2        23.0           8.5           3.0          34.5 
1998...............................................     3        23.0           8.5           3.0          34.5 
1999...............................................     4        21.0          10.5           3.0          34.5 
2000...............................................     5        18.0          13.5           3.0          34.5 
2001...............................................     6        15.0          19.5                        34.5 
2002...............................................     7        12.0          22.5                        34.5 
2003...............................................     8         9.0          25.5                        34.5 
2004...............................................     9         6.0          28.5                        34.5 
2005...............................................    10         3.0          31.5                        34.5 
----------------------------------------------------------------------------------------------------------------

SEC. 204. ESTABLISHMENT OF TRUST.

    (a) In General.--The Government of American Samoa shall establish a 
trust into which the amounts appropriated pursuant to section 203 are 
placed.
    (b) Trustee.--
            (1) In general.--A trustee to administer the trust 
        established by this section shall be nominated by the Governor 
        of American Samoa with concurrence of the Secretary of the 
        Interior, and confirmed by both Houses of the Legislature of 
        American Samoa pursuant to local law, and shall be a United 
        States financial institution with considerable experience in 
        the administration of similar trusts and which serves as the 
        trustee manager or custodian of over $1,000,000,000 in trust 
        assets (hereafter in this title referred to as the 
        ``trustee''). The trustee shall not be the independent auditor 
        required by section 207. The trustee shall be paid by the 
        Government of American Samoa.
            (2) Replacement.--The trustee may be terminated only by 
        mutual agreement between the trustee and the Government of 
        American Samoa, or at the end of its contract for services as 
        trustee, or for good cause. Termination of a trustee for good 
        cause must be recommended by the Governor of American Samoa and 
        approved by both Houses of the Legislature of American Samoa.
            (3) Other terms and conditions.--The trustee shall be 
        subject to such other conditions as the Government of American 
        Samoa may provide under local law so long as such conditions do 
not conflict with Federal laws or regulations or with applicable trust 
fund agreement provisions governing administration of the trust.
            (4) Responsibility of trustee.--A qualified trustee 
        appointed under this title shall perform its duties subject to 
        the governing law of the jurisdiction in which the principal 
        office of the trustee is located. Administration of the trust 
        to achieve the objectives of this title shall be in accordance 
        with a trust fund agreement between the Government of American 
        Samoa and the trustee governing the trust. Such agreement shall 
        provide that the trustee shall use reasonable and prudent care 
        and reasonable and prudent due diligence in the exercise of the 
        powers and the performance of the duties prescribed in this 
        title and the trust agreement. The trust agreement may 
        prescribe further the specific duties of the trustee, as well 
        as those of other parties identified in this title, including 
        audit authorities and the Government of American Samoa.
            (5) Liability.--
                    (A) In general.--The trustee shall be liable for 
                any release of funds which is not authorized by this 
                title. Upon a determination of liability under this 
                subsection, the trustee shall reimburse the United 
                States Treasury in the amount of the unauthorized 
                release of funds within 90 days of such determination.
                    (B) Exception.--The trustee shall not be liable 
                for--
                            (i) any mistake or other action taken in 
                        good faith, or for any loss unless resulting 
                        from the trustee's own default, negligence, or 
                        bad faith; or
                            (ii) any act or omission mandated by law or 
                        by the process or final order of any court of 
                        appropriate jurisdiction.
                    (C) Reimbursement.--In the event the trustee is 
                determined by a court to have acted in bad faith in 
                breach of its duties under this title, the trustee 
                shall reimburse the United States Treasury in the 
                amount of any loss resulting therefrom.
    (c) Trust Funds.--
            (1) Deposit; investment.--The trust funds shall be 
        deposited in an account or accounts of a financial institution 
        insured by the Federal Deposit Insurance Corporation pursuant 
        to regulations and direction of the Department of the Treasury, 
        and, to the extent such funds are available for investment, may 
        be invested by the Government of American Samoa, or the trustee 
        if so designated, in only federally insured accounts or issues 
        of bonds, notes or other redeemable instruments of the 
        Government of the United States.
            (2) Use of interest and dividends.--Interest or dividends 
        earned from investment of trust funds under paragraph (1) may 
        be used for projects contained on the approved master plan of 
        capital needs developed under section 205, or for the costs of 
        managing the trust.
            (3) Availability and use of federal funds.--Federal funds 
        made available for the purposes described in section 203(a)(1) 
        may be used only on projects from the approved master plan of 
        capital needs.
    (d) Reports.--Within 90 days after the end of each fiscal year, the 
trustee shall submit an annual report to the chairmen and ranking 
minority members of the Committee on Energy and Natural Resources and 
the Committee on Appropriations of the United States Senate, the 
Committee on Resources and the Committee on Appropriations of the 
United States House of Representatives, the Government of American 
Samoa, the Comptroller General of the United States, and the Inspector 
General of the Department of the Interior. The report shall include at 
a minimum the financial statements of the account or accounts in which 
it holds trust funds pursuant to this title.

SEC. 205. USES OF TRUST FUNDS.

    (a) Capital Needs.--
            (1) Master plan of capital needs.--No funds appropriated 
        pursuant to this title shall be released by the trustee for 
        construction of capital assets without the submission by the 
        Government of American Samoa to the trustee of a master plan of 
        capital needs that ranks projects in order of priority for at 
        least five years. The master plan shall be approved by the 
        Governor and passed by both Houses of the Legislature of 
        American Samoa pursuant to such laws as the Government of 
        American Samoa may enact. The master plan of capital needs may 
        be amended at any time, but all amendments must be approved by 
        the Governor and passed by both Houses of the Legislature of 
        American Samoa. The plan shall include the capital needs of all 
        the islands of American Samoa.
            (2) Funds for construction of capital assets.--Funds for 
        the construction of capital assets shall be paid to the 
        Government of American Samoa, the relevant semiautonomous 
        agency, or a contractor only after approval by the trustee. The 
        trustee shall approve the release of funds only for 
        construction projects for a public purpose in the areas of 
        communications, electrical power, water, waste water, disposal 
        of solid waste, roads, schools, school transportation system, 
        air, water and surface transportation, ports, harbors, storage 
        and transportation facilities of fuels or other forms of 
        energy, health, and construction of government-owned buildings. 
        Funding made available for construction of capital assets may 
        only be used for projects listed on the master plan of capital 
        needs as set forth in this section. To the extent an 
        appropriation is available, the projects contained on the 
        master list with the highest priority are to be funded. Funding 
        made available for construction of capital assets may only be 
        used for projects which comply with the procurement 
        requirements set forth in subtitle A of part 12, Code of 
        Federal Regulations.
            (3) Youth facilities.--At least $3,000,000 per year of any 
        funding made available pursuant to section 203(a)(1) may only 
        be used for the construction or repair of capital assets 
        primarily available for the school-age residents of American 
        Samoa, such as (but not limited to) school buildings, libraries 
        on school premises and the books contained therein, and 
        athletic facilities on school premises. Beginning with fiscal 
        year 1997, these projects shall be incorporated into the master 
        plan of capital needs required under paragraph (1). Facilities 
        for the American Samoa Community College are included within 
        the purview of this section. For fiscal year 1996, construction 
        of the following is authorized: $1,000,000 for a library for 
        the American Samoa Community College; $1,000,000 to expand the 
        gymnasium at the American Samoa Community College; $750,000 for 
        a gymnasium for Samoana High School; $100,000 for the 
        renovation of the library, computer room, and toilet facilities 
        at Fagaitua High School; $50,000 for the renovation of the 
        library, computer room and toilet facilities for Manu'a High 
        School; $50,000 for the renovation of the library and toilet 
        facilities at Aua Elementary School; and $50,000 for the 
        renovation of the library and toilet facilities for Fitiuta, 
        Faleasao, Ofu-Olosega, and Aunu'u Elementary Schools.
            (4) Requirement of semiautonomous agencies.--Beginning with 
        fiscal year 1997, no funds for the construction of capital 
        assets shall be released by the trustee in the areas of 
        communications, electrical power, public health, 
        transportation, water, and wastewater until there is 
        established by local law semiautonomous agencies of the 
        Government of American Samoa for the category in which the 
        funding is required.
            (5) Maintenance plan.--For fiscal years 1997 and all 
        following years, ten percent of the estimated cost of each 
        project shall not be released by the trustee for the 
        construction of capital assets until the Government of American 
        Samoa, or the appropriate semiautonomous agency if required, 
        submits to the trustee a maintenance plan covering the 
        anticipated life of the project and the maintenance of the 
        project is initially funded. The maintenance plan shall include 
        the estimated cost of maintaining and repairing the project and 
        identify a source to fund the estimated maintenance and repairs 
        for the anticipated life of the project. The initial funding 
        for this maintenance plan shall be in the amount of five 
        percent of the cost of the project. Federal funds made 
        available for the purposes described in section 203(a)(1) may 
        be used for the initial funding. Other Federal funds made 
        available pursuant to this title may not be used for this 
        purpose. Funds set aside pursuant to this paragraph may be used 
        for the maintenance and repair of any capital asset within the 
        purview of the government or the appropriate semiautonomous 
        agency.
    (b) Debt Reduction.--Any funding made available pursuant to section 
203(a)(3) used to reduce the unbudgeted debt of the Government of 
American Samoa must be matched, on a dollar for dollar basis, by funds 
provided by the Government of American Samoa or the relevant 
semiautonomous agency from revenue raised from non-Federal sources.
    (c) Prohibited Uses of Funds.--Neither the funds appropriated 
pursuant to this title, nor any interest or dividends earned on those 
funds may be transferred to other accounts, or loaned to other accounts 
or agencies; nor may these funds, interest or dividends be used as 
collateral for loans made by the local government.

SEC. 206. DISBURSEMENT OF TRUST FUNDS.

    (a) Operations.--Trust funds to be used for the operations of the 
Government of American Samoa shall be disbursed in equal amounts on a 
monthly basis, on the first business day of each month of the fiscal 
year. An extra drawdown may be made once each fiscal year in an amount 
not to exceed ten percent of the amounts appropriated for the fiscal 
year for the purposes of section 203(a)(2), and only for purposes 
caused by extreme or territorial emergencies deemed unforeseeable by 
the trustee.
    (b) Construction.--Trust funds to be used for the construction of 
capital assets shall be released by the trustee--
            (1) to the Government of American Samoa or the relevant 
        semiautonomous agency, only upon completion of identifiable 
        portions of the construction work if the work is performed by 
        employees of the Government of American Samoa or the relevant 
        semiautonomous agency, or
            (2) a bona fide contractor of the Government of American 
        Samoa or relevant semiautonomous agency pursuant to the terms 
        of a construction contract, on an invoice presented to the 
        Government of American Samoa or the relevant semiautonomous 
        agency and approved by appropriate officials of the Government 
        of American Samoa or the relevant semiautonomous agency.
    (c) Debt Reduction.--Trust funds to be used for unbudgeted debt 
reduction made available under section 203(a)(3) shall be released by 
the trustee on submission by the Government of American Samoa or the 
relevant semiautonomous agency of proof of payment from non-Federal 
sources for debt reduction.

SEC. 207. AUDITS.

    (a) In General.--
            (1) Required.--Beginning with fiscal year 1996, the 
        Government of American Samoa must obtain, at its own expense, a 
        comprehensive financial audit meeting the requirements of 
        chapter 75 of title 31, United States Code, and subtitle A, 
        part 12 of title 43, Code of Federal Regulations, which 
        requires that an independent audit be made in accordance with 
        generally accepted government auditing standards covering 
        financial and compliance audits. The audit shall determine 
        whether the financial statements of the American Samoa 
        Government present fairly its financial position and the 
        results of its financial operations in conformance with 
        generally accepted accounting principles. The audit shall 
        include the funds held in trust pursuant to this title.
            (2) Independent auditor's opinion.--Beginning with fiscal 
        year 2000, the audit required under this section must include 
        all the requirements of paragraph (1) and an independent 
        auditor's opinion that the financial statements of the 
        Government of American Samoa present fairly, in all material 
        respects, its financial position and the results of its 
        financial operations, in conformance with generally accepted 
        accounting principles.
    (b) Submission of Audit Report to United States.--Reports of audits 
required in this section along with the local government's corrective 
action plan to resolve any deficiencies reported shall be transmitted 
by the Governor of American Samoa to the chairmen and ranking members 
of the Committee on Energy and Natural Resources and the Committee on 
Appropriations of the United States Senate, the Committee on Resources 
and the Committee on Appropriations of the United States House of 
Representatives, the Comptroller General of the United States, and the 
Inspector General of the Department of the Interior within 180 days of 
the end of each fiscal year for which the United States provides 
funding under this title.
    (c) Failure To Obtain Audit.--In the event the Government of 
American Samoa does not obtain a qualifying audit within the time 
required by this section, the Inspector General of the Department of 
the Interior shall notify the appropriate Federal agencies and the 
trustee not to disburse additional funds available under section 
203(a)(2) for the operations of the Government of American Samoa, or 
any unobligated funds available under section 203(a)(1) for the 
construction of capital assets, until such time as a qualifying audit 
is received and the previously reported deficiencies corrected and the 
report of that audit is forwarded as required by this section. 
Notwithstanding the preceding sentence, one emergency disbursement may 
be made per year under the provisions of section 206 of this title, 
even if a qualifying audit report is not obtained or the deficiencies 
identified by an audit have not been corrected.

SEC. 208. AUDITS BY THE UNITED STATES.

    (a) In General.--The Comptroller General of the United States and 
the Inspector General of the Department of the Interior shall have the 
authority to conduct audits of all funds of all branches and 
semiautonomous authorities of the Government of American Samoa. Nothing 
in this title shall be construed to restrict the authority of these or 
other Federal agencies to audit government funds as authorized by 
Federal law.
    (b) Corrective Action.--Where appropriate, audit reports of the 
Comptroller General and the Inspector General shall include reasonable 
time limits on recommendations for corrective action. Such 
recommendations and the respective time limits may be amended from time 
to time as the audit authority deems appropriate. Deficiencies on which 
recommendations for corrective action are made shall be designated 
major or minor.
    (c) Audit Comment.--The Government of American Samoa, and any 
relevant semiautonomous agency, shall be afforded the opportunity to 
comment on, and propose remedial action to, draft audit reports before 
they become final, and the comments and proposed corrective action 
shall be published as part of the final audit report.
    (d) Other Laws.--The requirements of this section are in addition 
to any other Federal law governing financial audits of American Samoa.
    (e) Submission of Reports.--Audit reports prepared by the 
Comptroller General or the Inspector General shall be submitted to the 
chairmen and ranking members of the Committee on Energy and Natural 
Resources and the Committee on Appropriations of the United States 
Senate, the Committee on Resources and the Committee on Appropriations 
of the United States House of Representatives, the Government of 
American Samoa, and the trustee.
    (f) Failure To Correct Deficiencies of United States Auditors.--If 
the cognizant audit authority determines that the Government of 
American Samoa has not corrected a major deficiency noted in audit 
reports submitted pursuant to subsection (b) within the time prescribed 
for that major deficiency, the cognizant audit authority shall notify 
the appropriate Federal agencies and the trustee not to disburse 
additional funds available under section 203(a)(2) for the operations 
of the Government of American Samoa, or any unobligated funds available 
under section 203(a)(1) for the construction of capital assets, until 
such time as the cognizant audit authority notifies the trustee and the 
appropriate Federal agencies that the major deficiency has been 
corrected, or disallowed costs have been recovered, whichever may be 
appropriate.
    (g) Notice Regarding Use of Funds Outside Scope of Trust.--If at 
any time it is determined by the cognizant audit authority that funds 
distributed by the trustee to the Government of American Samoa have 
been used for purposes outside the statutory scope of the trust, such 
audit authority shall, at a time and in a manner which is lawful and 
does not interfere with any ongoing investigative process, law 
enforcement activity or other activities or operations required under 
applicable regulations and procedures, notify the chairman and ranking 
member of the Committee on Energy and Natural Resources of the United 
States Senate, the chairman and ranking member of the Committee on 
Resources of the United States House of Representatives, the Government 
of American Samoa, and the trustee, of such determination so that the 
trustee and the Government of American Samoa may exercise their legal 
rights and powers, including recovery of such funds.

SEC. 209. SETTLEMENT OF DISPUTES.

    The High Court of American Samoa is authorized to resolve disputes 
which arise under this title pursuant to its rules of procedure.

SEC. 210. CRIMINAL VIOLATIONS.

    Prosecution of violations of Federal or local criminal law which 
occur concerning funds appropriated pursuant to this title may be 
brought in local and Federal courts, as appropriate.

SEC. 211. DEFINITIONS.

    As used in this title, the following definitions apply:
            (1) The term ``area of disbursement'' means one of the 
        three authorized purposes for which funds may be disbursed 
        found at paragraphs (1) through (3) of section 203(a).
            (2) The term ``cognizant audit authority'' means the 
        Comptroller General of the United States, or the Inspector 
        General of the Department of the Interior.
            (3) The term ``extreme or territorial emergencies'' means 
        serious situations or occurrences which happen unexpectedly and 
        have a significant impact on the finances of the territory, 
        including acts of God which cause severe disruption of public 
        services such as transportation, medical services, and utility 
        services.
            (4) The term ``master plan of capital needs'' means a list 
        of capital assets needed by the Government of American Samoa, 
        including any semiautonomous agencies which may be created 
        before or after the date of the enactment of this title, to 
        provide for efficient and effective operation of the 
        government. The master plan may be completed before or after 
        the date of the enactment of this title, so long as it meets 
        the requirements set forth in section 205.
            (5) The term ``semiautonomous agency'' means an agency 
        within the executive branch of the Government of American Samoa 
        which has the following characteristics:
                    (A) The agency is created by local statute, either 
                before or after the date of the enactment of this 
                title.
                    (B) The agency is managed by a board of directors, 
                the individual directors of which are nominated by the 
                Governor of American Samoa and confirmed by the 
                Legislature of American Samoa.
                    (C) The terms of the directors are staggered.
                    (D) The board of directors has control over the 
                budget for that agency, although the entity may be 
                funded in part by grants or loans from the Federal 
                Government or the Government of American Samoa.
                    (E) The board of directors has the authority to set 
                rates or fees collected by the agency for the service 
                it provides, subject to local law.
            (6) The term ``unbudgeted debt'' means debt incurred for a 
        lawful purpose by the Government of American Samoa, or any of 
        its agencies, departments, or offices, in fiscal years prior to 
        fiscal year 1996, including debt which has been caused because 
        more funds were spent than were lawfully appropriated for a 
        particular budget item or because revenue for a budget item did 
        not meet budgeted estimates.

        TITLE III--COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

SEC. 301. TERMINATION OF ANNUAL DIRECT GRANT ASSISTANCE.

    (a) Termination.--Pursuant to section 704(d) of the Covenant to 
Establish a Commonwealth of the Northern Mariana Islands in Political 
Union with the United States of America (48 U.S.C. 1681 note), the 
annual payments under section 702 of the Covenant shall terminate as of 
September 30, 1995.
    (b) Repeal.--Sections 3 and 4 of the Act of March 24, 1976 (Public 
Law 94-241; 48 U.S.C. 1681 note), as amended, are repealed, effective 
October 1, 1995.
    (c) Conforming Amendments.--Section 5 of such Act (48 U.S.C. 1681 
note) is amended--
            (1) by striking out ``agreement identified in section 3 of 
        this Act'' and inserting in lieu thereof ``Agreement of the 
        Special Representatives on Future United States Financial 
        Assistance for the Government of the Northern Mariana Islands, 
        executed July 10, 1985, between the special representative of 
        the President of the United States and the special 
        representatives of the Governor of the Northern Mariana 
        Islands''; and
            (2) by striking out ``Committee on Interior and Insular 
        Affairs'' and inserting in lieu thereof ``Committee on 
        Resources''.

           TITLE IV--TERRITORIAL ADMINISTRATIVE CESSATION ACT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Territorial Administrative 
Cessation Act''.

SEC. 402. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) each of the four political subdivisions of the United 
        Nations Trust Territory of the Pacific Islands, known as the 
        Japanese Mandated Islands, have successfully entered into 
        distinct self-governing entities, thereby culminating in the 
        final termination of the Trusteeship and the end of the 
        trusteeship responsibilities of the United States as 
        administering authority of the Trust Territory on October 1, 
        1994;
            (2) the United States territories have developed 
        progressively increased local self-government over the past 
        five decades;
            (3) the territories predominantly deal directly with 
        Federal agencies and departments, as a State would;
            (4) the administering responsibilities of the Department of 
        the Interior with respect to the insular areas has declined 
        substantially during the past five decades; and
            (5) Federal-territorial relations can be enhanced and 
        Federal fiscal conditions improved by the elimination of 
        unnecessary Federal bureaucracy.

SEC. 403. ELIMINATION OF OFFICE OF TERRITORIAL AND INTERNATIONAL 
              AFFAIRS.

    (a) In General.--The Office of Territorial and International 
Affairs of the Department of the Interior, established pursuant to the 
Order of the Secretary of the Interior 3046, of February 14, 1980, as 
amended, is hereby abolished.
    (b) Termination of Position of Assistant Secretary.--Section 5315 
of title 5, United States Code, is amended by striking ``Assistant 
Secretaries of the Interior (6)'' and inserting ``Assistant Secretaries 
of the Interior (5)''.
    (c) Effective Date.--Subsection (a) and the amendment made by 
subsection (b) shall take effect on the first day of the first fiscal 
year that begins after the date of the enactment of this Act.

SEC. 404. CERTAIN ACTIVITIES NOT FUNDED.

    Amounts may not be made available for the following program 
activities for assistance to territories for fiscal years beginning 
after September 30, 1995, as identified under the appropriations 
account numbered 14-0412-0-1-808:
            (1) technical assistance, item 00.12;
            (2) maintenance assistance, item 00.14;
            (3) disaster fund, item 00.17; and
            (4) insular management controls, item 00.19.
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