[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 602 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 602

       To reform the laws concerning territories and possessions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 20, 1995

 Mr. Gallegly introduced the following bill; which was referred to the 
Committee on Resources and, in addition, to the Committees on Economic 
and Educational Opportunities, the Judiciary, and Ways and Means for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
       To reform the laws concerning territories and possessions.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.
           TITLE I--TERRITORIAL ADMINISTRATIVE CESSATION ACT

Sec. 101. Short title.
Sec. 102. Congressional findings.
Sec. 103. Elimination of Office of Territorial and International 
                            Affairs.
  TITLE II--AUTHORITY MODIFICATIONS PURSUANT TO COVENANT OF NORTHERN 
                            MARIANA ISLANDS

Sec. 201. Applicability of minimum wage laws.
Sec. 202. Applicability of Fair Labor Standards Act of 1938 with 
                            respect to minimum wage.
Sec. 203. Applicability of immigration laws.
Sec. 204. Removal of authority of Northern Mariana Islands to rebate 
                            taxes.
               TITLE III--INSULAR AREAS CONSOLIDATION ACT

Sec. 301. Short title.
Sec. 302. Additions to State of Hawaii.
Sec. 303. Conforming amendments.
Sec. 304. Use of islands, reef, and atolls.
Sec. 305. Additions contingent upon acceptance by State of Hawaii.
Sec. 306. Definitions.
  TITLE IV--CONVEYANCE OF SUBMERGED LANDS TO NORTHERN MARIANA ISLANDS

Sec. 401. Conveyance of submerged lands.
Sec. 402. Reserved rights.
Sec. 403. Time for exceptions from transfer.
           TITLE V--GUAM WORLD WAR II LOYALTY RECOGNITION ACT

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Requirements for claims and general duties of board.
Sec. 504. Eligibility.
Sec. 505. Payments.
Sec. 506. Guam World War II Loyalty Recognition Trust Fund.
Sec. 507. Guam World War II Loyalty Recognition Trust Fund Board of 
                            Directors.
Sec. 508. Notice.
Sec. 509. Reports.
Sec. 510. Limitation on agent and attorney fees.
Sec. 511. Disclaimer.
Sec. 512. Authorization of appropriations.
                  TITLE VI--DELEGATE FROM PUERTO RICO

Sec. 601. Redesignation of Resident Commissioner from Puerto Rico.
Sec. 602. Term of office of Delegate.
Sec. 603. Procedure to fill vacancy.
TITLE VII--CONSULTATION OF AND EFFORTS TO INCLUDE TERRITORIES REGARDING 
                         FREE TRADE AGREEMENTS

Sec. 701. Consultation of and efforts to include territories.
Sec. 702. Tariff enactment of territories.
Sec. 703. Inclusion of territories in customs territory and free trade 
                            agreements.

           TITLE I--TERRITORIAL ADMINISTRATIVE CESSATION ACT

SEC. 101. SHORT TITLE.

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

SEC. 102. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) each of the 4 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 5 
        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 5 decades; and
            (5) Federal-territorial relations can be enhanced and 
        Federal fiscal conditions improved by the elimination of 
        unnecessary Federal bureaucracy.

SEC. 103. 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.

  TITLE II--AUTHORITY MODIFICATIONS PURSUANT TO COVENANT OF NORTHERN 
                            MARIANA ISLANDS

SEC. 201. APPLICABILITY OF MINIMUM WAGE LAWS.

    (a) In General.--Public Law 94-241 (48 U.S.C. 1681 note) is amended 
by adding at the end the following new section:
    ``Sec. 6. Section 503 of the foregoing Covenant shall be construed 
and applied as if it did not include paragraph (c) of such section.''.
    (b) Effective Date.--The amendment made by this section shall be 
effective with respect to work performed after the expiration of the 6-
month period beginning on the date of the enactment of this Act.

SEC. 202. APPLICABILITY OF FAIR LABOR STANDARDS ACT OF 1938 WITH 
              RESPECT TO MINIMUM WAGE.

    (a) Section 5.--Section 5 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 205) is amended--
            (1) in the title, by inserting ``and northern mariana 
        islands'' after ``american samoa'',
            (2) in subsection (a), in the first sentence, by inserting 
        ``and in the Northern Mariana Islands'' after ``American 
        Samoa'', and
            ``(3) in subsection (a), in the second sentence, by 
        inserting ``or the Northern Mariana Islands, as the case may 
        be,'' after ``American Samoa'' each place it appears.
    (b) Section 6.--Section 6(a)(3) of the Fair Labor Standard Act of 
1938 (29 U.S.C. 206(a)(3)) is amended by inserting ``or in the Northern 
Mariana Islands'' after ``American Samoa''.
    (c) Section 8.--Section 8 of the Fair Labor Standards Act of 1938 
(29 U.S.C. 208) is amended--
            (1) in the title, by inserting ``and northern mariana 
        islands'' after ``american samoa'',
            (2) in subsection (a), by inserting ``and in the Northern 
        Mariana Islands'' after ``American Samoa'' each place it 
        occurs, and
            (3) in subsection (b), by inserting ``or in the Northern 
        Mariana Islands'' after ``in American Samoa'' and by inserting 
        ``or the Northern Mariana Islands'' after ``of American 
        Samoa''.

SEC. 203. APPLICABILITY OF IMMIGRATION LAWS.

    (a) In General.--Public Law 94-241 (48 U.S.C. 1681 note) is amended 
by adding at the end the following new section:
    ``Sec. 7. Section 506(a) of the foregoing Covenant shall be 
construed and applied as if it included at the end the following 
subsection:
    ```(e)(1) For purposes of entry into the Northern Mariana Islands 
by any individual (but not for purposes of entry by an individual into 
the United States from the Northern Mariana Islands), the Immigration 
and Nationality Act shall apply as if the Northern Mariana Islands were 
a State. The Attorney General, acting through the Commissioner of 
Immigration and Naturalization, shall enforce the preceding sentence.
    ```(2)(A) Notwithstanding paragraph (1), with respect to an 
individual seeking entry into the Northern Mariana Islands for purposes 
of employment in the textile, hotel, tourist, or construction industry 
(including employment as a contractor), the Federal statutes and 
regulations governing admission to Guam of individuals described in 
section 101(a)(15)(H)(ii)(B) of the Immigration and Nationality Act 
shall apply. Such statutes and regulations shall be so applied by 
substituting the term `the Northern Mariana Islands' for the term 
`Guam' each place it appears, and by substituting the term `United 
States citizen, national, or resident workers' for the term `United 
States resident workers'.
    ```(B) Notwithstanding any other provision of this section, the 
Attorney General shall not admit into the Northern Mariana Islands, in 
any calendar year, a greater number of individuals for purposes of 
employment in each of the textile, hotel, tourist, and construction 
industries (including employment as a contractor) than the immigrant 
workers limit for such industry. For purposes of the preceding 
sentence, the term `immigrant workers limit' means, with respect to any 
industry, the number of individuals admitted into the Northern Mariana 
Islands in calendar year 1992 for purposes of employment in such 
industry. The Attorney General, acting through the Commissioner of 
Immigration and Naturalization, may increase, for any calendar year, 
the immigrant workers limit or any industry (as determined under the 
preceding sentence) by the same percentage as the percentage, if any, 
by which the population of the Northern Mariana Islands in such 
calendar year exceeds the population of the Northern Mariana Islands in 
the calendar year 1992.'.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to individuals entering the Northern Mariana Islands after the 
expiration of the 6-month period beginning with the date of the 
enactment of this Act.

SEC. 204. REMOVAL OF AUTHORITY OF NORTHERN MARIANA ISLANDS TO REBATE 
              TAXES.

    Public Law 94-241 (48 U.S.C. 1681 note) is amended by adding at the 
end the following new section:
    ``Sec. 8. Section 602 of the foregoing Covenant shall be construed 
and applied as if it read as follows:
    ```Sec. 602. The Government of the Northern Mariana Islands may by 
local law impose such taxes, in addition to those imposed under Section 
601, as it deems appropriate.'.''.

               TITLE III--INSULAR AREAS CONSOLIDATION ACT

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Insular Areas Consolidation Act of 
1995''.

SEC. 302. ADDITIONS TO STATE OF HAWAII.

    (a) In General.--The State of Hawaii shall include Baker Island, 
Jarvis Island, Johnston Atoll, Kingman Reef, Howland Island, the Midway 
Islands, and Palmyra Atoll.
    (b) Jurisdiction.--The islands specified in subsection (a) shall be 
subject to the jurisdiction of the State of Hawaii to the same extent 
as and in the same manner that such jurisdiction applies to all other 
areas within the State of Hawaii.
    (c) Rights of United States.--The inclusion of islands, appurtenant 
reefs, and territorial waters in the State of Hawaii by this section 
shall be subject to existing rights of use, ownership, management, and 
operation by the Government of the United States.

SEC. 303. CONFORMING AMENDMENTS.

    (a) Hawaii Statehood Act.--Section 2 of the Act of March 18, 1959 
(Public Law 86-3; 73 Stat. 4; 48 U.S.C. Chap. 3 note), is amended by 
striking all that follows ``enactment of this Act'' and inserting a 
period.
    (b) Exemption From Provisions Relating to the Guano Islands.--Title 
LXXII of the Revised Statutes (48 U.S.C. 1411 et seq.) shall not apply 
to the islands, reef, and atolls specified in section 302(a).

SEC. 304. USE OF ISLANDS, REEF, AND ATOLLS.

    No provision of this title shall be construed as congressional 
approval, suggestion, or intent to alter, change, affect, or reduce the 
current use of any of this islands, reef, or atolls specified in 
section 302(a).

SEC. 305. ADDITIONS CONTINGENT UPON ACCEPTANCE BY STATE OF HAWAII.

    (a) Acceptance by State of Hawaii.--Sections 302 and 303 shall not 
take effect unless the Governor of the State of Hawaii certifies to the 
President that the State of Hawaii accepts all of the islands, reef, 
and atolls referred to in section 302(a).
    (b) Proclamation by President.--Not later than 30 days after 
receiving the certification described in subsection (a), the President 
shall issue a proclamation of the new geographical jurisdiction of the 
State of Hawaii.
    (c) Effective Date.--Sections 302 and 303 shall take effect upon 
the issuance of the proclamation described in subsection (b).

SEC. 306. DEFINITIONS.

    For purposes of this title:
            (1) Baker island.--The term ``Baker Island'' means all of 
        the islands and appurtenant reefs at the parallel of 0 degrees, 
        11 to 13 minutes, of latitude north of the Equator and at the 
        meridian of 176 degrees, 27 to 30 minutes, of longitude west of 
        Greenwich, England, and the territorial waters of such islands 
        and reefs.
            (2) Howland island.--The term ``Howland Island'' means all 
        of the islands and appurtenant reefs at the parallel of 0 
        degrees, 46 to 50 minutes, of latitude north of the Equator and 
        at the meridian of 176 degrees, 37 to 39 minutes, of longitude 
        west of Greenwich, England, and the territorial waters of such 
        islands and reefs.
            (3) Jarvis island.--The term ``Jarvis Island'' means all of 
        the islands and appurtenant reefs at the parallel of 0 degrees, 
        22 to 24 minutes, of latitude south of the Equator and at the 
        meridian of 160 degrees, 0 to 3 minutes, of longitude west of 
        Greenwich, England, and the territorial waters of such islands 
        and reefs.
            (4) Johnston atoll.--The term ``Johnston Atoll'' means all 
        of the islands and appurtenant reefs at the parallel of 16 
        degrees, 40 to 48 minutes, of latitude north of the Equator and 
        at the meridian of 169 degrees, 24 to 36 minutes, of longitude 
        west of Greenwich, England, and the territorial waters of such 
        islands and reefs.
            (5) Kingman reef.--The term ``Kingman Reef'' means all of 
        the territory and appurtenant reefs at the parallel of 6 
        degrees, 22 to 27 minutes, of latitude north of the Equator and 
        at the meridian of 162 degrees, 22 to 25 minutes, of longitude 
        west of Greenwich, England, and the territorial waters of such 
        islands and reefs.
            (6) Midway islands.--The term ``Midway Islands'' means all 
        of the islands and appurtenant reefs at the parallel of 28 
        degrees, 10 to 18 minutes, of latitude north of the Equator and 
        at the meridian of 177 degrees, 16 to 28 minutes, of longitude 
        west of Greenwich, England, and the territorial waters of such 
        islands and reefs.
            (7) Palmyra atoll.--The term ``Palmyra Atoll'' means all of 
        the islands and appurtenant reefs at the parallel of 5 degrees, 
        51 to 54 minutes, of latitude north of the Equator and at the 
        meridian of 162 degrees, 0 to 11 minutes, of longitude west of 
        Greenwich, England, and the territorial waters of such islands 
        and reefs.

  TITLE IV--CONVEYANCE OF SUBMERGED LANDS TO NORTHERN MARIANA ISLANDS

SEC. 401. CONVEYANCE OF SUBMERGED LANDS.

    The first section of Public Law 93-435 (88 Stat. 1210; 48 U.S.C. 
1705) is amended--
            (1) in subsection (a), by striking ``Guam, the Virgin 
        Islands, and American Samoa'' each place it appears and 
        inserting ``Guam, the Virgin Islands, American Samoa, and the 
        Northern Mariana Islands''; and
            (2) in subsection (b), by striking ``Guam, the Virgin 
        Islands, or American Samoa'' each place it appears and 
        inserting ``Guam, the Virgin Islands, American Samoa, or the 
Northern Mariana Islands''.

SEC. 402. RESERVED RIGHTS.

    Section 2 of Public Law 93-435 (88 Stat. 1211; 48 U.S.C. 1706) is 
amended--
            (1) in subsection (a), by striking ``Guam, American Samoa, 
        and the Virgin Islands'' and inserting ``Guam, American Samoa, 
        the Virgin Islands, and the Northern Mariana Islands''; and
            (2) in subsection (b), by striking ``Guam, the Virgin 
        Islands, or American Samoa'' and inserting ``Guam, the Virgin 
        Islands, American Samoa, or the Northern Mariana Islands''.

SEC. 403. TIME FOR EXCEPTIONS FROM TRANSFER.

    Subsection (b)(vii) of the first section of Public Law 93-435 (88 
Stat. 1210; 48 U.S.C. 1705) is amended by striking the semicolon and 
inserting ``or, in the case of a transfer to the Northern Mariana 
Islands, within one hundred and twenty days after the date of enactment 
of the Omnibus Territories Act;''.

           TITLE V--GUAM WORLD WAR II LOYALTY RECOGNITION ACT

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Guam World War II Loyalty 
Recognition Act''.

SEC. 502. DEFINITIONS.

    For the purposes of this Act:
            (1) Award.--The term ``award'' means the amount of 
        compensation payable under section 505(b).
            (2) Benefit.--The term ``benefit'' means the amount of 
        compensation payable under section 505(c).
            (3) Board.--The term ``Board'' means the Guam World War II 
        Loyalty Recognition Trust Fund Board of Directors established 
        by section 507.
            (4) Compensable injury.--The term ``compensable injury'' 
        means any of the following 3 categories of injury incurred 
        during, or as a result of, World War II:
                    (A) Death.
                    (B) Personal injury (as defined by the Board).
                    (C) Forced labor, forced march, or internment.
            (5) Guamanian.--The term ``Guamanian'' means any person 
        who--
                    (A) resided in the territory of Guam at any time 
                during the period beginning on December 8, 1941, and 
                ending on September 2, 1945;
                    (B) was a United States citizen or national during 
                such period; and
                    (C) did not meet the 1-year time limitation for the 
                filing of death or personal injury claims specified in 
                the first section of the Act of November 15, 1945 
                (Chapter 483; 59 Stat. 582), or suffered injuries not 
                compensable under such Act.
            (6) Trust fund.--The term ``Trust Fund'' means the Guam 
        World War II Loyalty Recognition Trust Fund established by 
        section 506(a).

SEC. 503. REQUIREMENTS FOR CLAIMS AND GENERAL DUTIES OF BOARD.

    (a) Required Information for Claims.--Each claim for an award or 
benefit under this Act shall be made under oath and shall include--
            (1) the name and age of the claimant;
            (2) the village in which the claimant, or the individual 
        who suffered the compensable injury that is the basis for the 
        claim, as the case may be, resided at the time the compensable 
        injury occurred;
            (3) the approximate date or dates on which the compensable 
        injury that is the basis for the claim occurred;
            (4) a brief description of the compensable injury;
            (5) the circumstances leading to the compensable injury; 
        and
            (6) in the case of a claim for a benefit, proof of the 
        relationship of the claimant to the relevant decedent.
    (b) General Duties of Board to Process Claims.--With respect to 
each claim filed under this Act, the Board shall determine whether the 
claimant is eligible for an award or benefit under this Act and, if so, 
shall certify the claim for payment in accordance with section 505(a).
    (c) Time Limitation.--With respect to each claim submitted under 
this Act, the Board shall act expeditiously, but in no event later than 
1 year after the receipt of the claim by the Board, to fulfill the 
requirements of subsection (b) regarding the claim.

SEC. 504. ELIGIBILITY.

    (a) Eligibility for Awards.--To be eligible for an award under this 
Act, a claimant shall meet each of the following criteria:
            (1) The claimant is a living Guamanian who personally 
        received the compensable injury that is the basis for the 
        claim.
            (2) The claimant files a claim with the Board regarding a 
        compensable injury and containing all the information required 
        by section 503(a).
            (3) The claimant is able to furnish proof of the 
        compensable injury or is able to produce affidavits by 2 
        witnesses to the compensable injury.
            (4) By such procedures as the Board may prescribe, the 
        claimant files a claim under this Act within 1 year after the 
        date of the appointment of the ninth member of the Board.
    (b) Eligibility for Benefits.--
            (1) In general.--Except as provided in paragraph (2), to be 
        eligible for a benefit under this Act, a claimant shall meet 
        each of the following criteria:
                    (A) The claimant is a living Guamanian who is an 
                heir or next of kin of a decedent Guamanian who 
                personally received the compensable injury that is the 
                basis for the claim.
                    (B) The Claimant files a claim with the Board 
                regarding the compensable injury and containing all the 
                information required by section 503(a).
                    (C) The claimant is able to furnish proof of the 
                compensable injury or is able to produce affidavits by 
                2 witnesses to the compensable injury.
                    (D) By such procedures as the Board may prescribe, 
                the claimant files a claim under this Act within 1 year 
                after the date of the appointment of the ninth member 
                of the Board.
            (2) Individuals proving consanguinity with other 
        claimants.--Except as provided in section 505(e), each 
        individual who proves consanguinity with a claimant who has met 
        each of the criteria specified in paragraph (1) shall be 
        eligible to receive an equal share of the benefit accruing, 
        under this Act, to such claimant if the individual files a 
        claim with the Board by such procedures as the Board may 
        prescribe.
    (c) Limitation on Eligibility for Awards and Benefits.--
            (1) Awards.--(A) No claimant may receive more than 1 award 
        under this Act.
            (B) Each award shall consist of only 1 of the amounts 
        referred to in section 505(b).
            (2) Benefits.--(A) Not more than 1 benefit may be paid 
        under this Act with respect to each decedent described in 
        subsection (b)(1)(A).
            (B) Each benefit shall consist of only 1 of the amounts 
        referred to in section 505(c).

SEC. 505. PAYMENTS.

    (a) Certification.--The Board shall certify for payment all awards 
and benefits that the Board determines are payable under this Act.
    (b) Awards.--The Board shall pay from the Trust Fund 1 of the 
following amounts as an award to each claimant eligible under section 
504(a):
            (1) $7,000 if the relevant claim is based on personal 
        injury.
            (2) $5,000 if the relevant claim is based on forced labor, 
        forced march, or internment and is not based on personal 
        injury.
    (c) Benefits.--The Board shall pay from the Trust Fund 1 of the 
following amounts as a benefit to each claimant eligible under section 
504(b):
            (1) $20,000 if the relevant claim is based on death.
            (2) $7,000 if the relevant claim is based on personal 
        injury and is not based on death.
            (3) $5,000 if the relevant claim is based on forced labor, 
        forced march, or internment and is not based on death or 
        personal injury.
    (d) Refusal To Accept Payment.--If a claimant refuses to accept a 
payment made or offered under subsection (b) or (c) with respect to a 
claim filed under this Act--
            (1) the amount of the refused payment, if withdrawn from 
        the Trust Fund for purposes of making the payment, shall be 
        returned to the Trust Fund; and
            (2) no payment may be made under this Act to such claimant 
        at any future date with respect to the claim.
    (e) Payments on Claims for the Same Death.--If the relevant 
compensable injury regarding a claim is death, payment of a benefit 
under this Act with respect to the claim shall be divided among the 
heirs or next of kin claiming such payment with respect to the death, 
as provided in the probate laws of Guam.
    (f) Order of Payments.--The Board shall endeavor to make payments 
under this Act with respect to awards before making such payments with 
respect to benefits and, when making payments with respect to awards or 
benefits, respectively, to make payments to eligible individuals in the 
order of date of birth (the oldest individual on the date of the 
enactment of this Act, or, if applicable, the survivors of that 
individual, receiving payment first), until all eligible individuals 
have received payment in full.

SEC. 506. GUAM WORLD WAR II LOYALTY RECOGNITION TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States the Guam World War II Loyalty Recognition Trust Fund, 
which shall be administered by the Secretary of the Treasury.
    (b) Investments.--Amounts in the Trust Fund shall be invested in 
accordance with section 9702 of title 31, United States Code.
    (c) Uses.--Amounts in the Trust Fund shall be available only for 
disbursement by the Board in accordance with section 507.
    (d) Disposition of Funds Upon Termination.--If all of the amounts 
in the Trust Fund have not been obligated or expended by the date of 
the termination of the Board, investments of amounts in the Trust Fund 
shall be liquidated, the receipts of such liquidation shall be 
deposited in the Trust Fund, and any unobligated funds remaining in the 
Trust Fund shall be given to the University of Guam, with the 
conditions that--
            (1) the funds are invested as described in subsection (b):
            (2) the funds are used for scholarships, to be known as 
        Guam World War II Loyalty Scholarships, for claimants described 
        in subsection (a) or (b) (or both) of section 504, or for such 
        scholarships for the descendants of such claimants; and
            (3) as the University determines appropriate, the 
        University shall endeavor to award the scholarships referred to 
        in paragraph (2) in a manner that permits the award of the 
        largest possible number of scholarships over the longest 
        possible period of time.

SEC. 507. GUAM WORLD WAR II LOYALTY RECOGNITION TRUST FUND BOARD OF 
              DIRECTORS.

    (a) Establishment.--There is established the Guam World War II 
Loyalty Recognition Trust Fund Board of Directors, which shall be 
responsible for making disbursements from the Guam World War II Loyalty 
Recognition Trust Fund in the manner provided in this section.
    (b) Use of Guam World War II Loyalty Recognition Trust Fund.--The 
Board may make disbursements from the Guam Recognition Trust Fund only 
for the following uses:
            (1) To make payments, under section 505, of awards and 
        benefits to eligible claimants, in the amounts specified by 
        such section.
            (2) To sponsor research and public educational activities 
        so that the events surrounding the wartime experiences and 
        losses of the Guamanian people will be remembered, and so that 
        the causes and circumstances of this event and similar events 
        may be illuminated and understood.
            (3) To disburse available funds as benefits to eligible 
        claimants, through a revolving fund, for such purposes as post-
        secondary scholarships, first-time home ownership loans, and 
        any other purpose that the Board determines to be appropriate.
            (4) To pay reasonable administrative expenses of the Board, 
        including expenses incurred under subsections (c)(3), (d), and 
        (e).
    (c) Membership.--
            (1) Number and appointment.--The Board shall be composed of 
        9 members who are not officers or employees of the United 
        States Government and who are appointed by the President from 
        recommendations made by the Governor of Guam.
            (2) Terms.--(A) Initial members of the Board shall be 
        appointed for initial terms of 3 years, and subsequent terms 
        shall be of a length determined pursuant to paragraph (6)(B).
            (B) Any member of the Board who is appointed to fill a 
        vacancy occurring before the expiration of the term for which 
        such member's predecessor was appointed shall be appointed only 
        for the remainder of such term.
            (3) Prohibition of compensation other than expenses.--
        Members of the Board shall serve without pay as such, except 
        that members of the Board shall be entitled to reimbursement 
        for travel, subsistence, and other necessary expenses incurred 
        by them in carrying out the functions of the Board in the same 
        manner that persons employed intermittently in the United 
        States Government are allowed expenses under section 5703 of 
        title 5, United States Code.
            (4) Quorum.--5 members of the Board shall constitute a 
        quorum but a lesser number may hold hearings.
            (5) Chairperson.--The Chair of the Board shall be elected 
        by the members of the Board.
            (6) Subsequent appointments.--(A) Upon the expiration of 
        the term of each member of the Board, the President shall 
        reappoint the member (or appoint another individual to replace 
        the member) if the President determines, after consideration of 
        the reports submitted to the President by the Board under this 
        title, that there are sufficient funds in the Trust Fund for 
        the present and future administrative costs of the Board and 
        for the payment of further awards and benefits for which claims 
        have been or may be filed under this title.
            (B) Members appointed under paragraph (A) shall be 
        appointed for a term of a length that the President determines 
        to be appropriate, but the length of such term shall not exceed 
        3 years.
    (d) Staff and Services.--
            (1) Director.--The Board shall have a Director who shall be 
        appointed by the Board.
            (2) Additional staff.--The Board may appoint and fix the 
        pay of such additional staff as it may require.
            (3) Inapplicability of certain provisions of title 5, 
        united states code.--The Director and the additional staff of 
        the Board may be appointed without regard to section 5311 of 
        title 5, United States Code, and without regard to the 
        provisions of such title governing appointments in the 
        competitive service, and may be paid without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        such title relating to classification and General Schedule pay 
rates, except that the compensation of any employee of the Board may 
not exceed a rate equivalent to the minimum rate of basic pay payable 
for GS-15 of the General Schedule under section 5332(a) of such title.
            (4) Administrative support services.--The Administrator of 
        General Services shall provide to the Board, on a reimbursable 
        basis, such administrative support services as the Board may 
        request.
    (e) Gifts and Donations.--The Board may accept, use, and dispose of 
gifts or donations of funds, services, or property for uses referred to 
in subsection (b). The Board may deposit such gifts or donations, or 
the proceeds from such gifts or donations, into the Trust Fund.

SEC. 508. NOTICE.

    Not later than 90 days after the appointment of the ninth member of 
the Board, the Board shall give public notice in the territory of Guam 
and such other places as the Board deems appropriate of the time when, 
and the time limitation within which, claims may be filed under this 
title. The Board shall ensure that the provisions of this title are 
widely published in the territory of Guam and such other places as the 
Board deems appropriate, and the Board shall make every effort both to 
advise promptly all individuals who may be entitled to file claims 
under the provisions of this title and to assist such individuals in 
the preparation and filing of their claims.

SEC. 509. REPORTS.

    (a) Compensation and Claims.--Not later than 12 months after the 
formation of the Board, and each year thereafter, the Board shall 
submit to the Congress, the President, and the Governor of Guam a 
report containing a determination of the specific amount of 
compensation necessary to fully carry out this title, the expected 
amount of receipts to the Trust Fund, and all payments made by the 
Board under this title. The report shall also include--
            (1) a list of all claims, categorized by compensable 
        injury, which were determined to be eligible for an award or 
        payment under this title, and a list of claims, categorized by 
        compensable injury, which were certified for payment under this 
        title; and
            (2) a list of all claims, categorized by compensable 
        injury, which were determined not to be eligible for an award 
        or benefit under this title, and a brief explanation of the 
        reason therefore.
    (b) Annual Operations and Status of Fund.--Beginning with the first 
full fiscal year ending after submission of the first report required 
by subsection (a), and annually thereafter with respect to each fiscal 
year in which the Board is in existence, the Board shall submit a 
report to the Congress, the President, and the Governor of Guam 
concerning the operations of the Board under this title and the status 
of the Trust Fund. Such report shall be submitted not later than 
January 15th of each applicable year.
    (c) Final Award Report.--Once all awards have been paid to eligible 
claimants, the Board shall submit a report to the Congress, the 
President, and the Governor of Guam certifying--
            (1) the total amount of compensation paid as awards under 
        this title, broken down by category of compensable injury; and
            (2) the status of the Trust Fund and the amount of any 
        existing balance thereof.
    (d) Final Benefits Report.--Once all benefits have been paid to 
eligible claimants, the Board shall submit a report to the Congress, 
the President, and the Governor of Guam certifying--
            (1) the total amount of compensation paid as benefits under 
        this title, broken down by category of compensable injury; and
            (2) the final status of the Trust Fund and the amount of 
        any existing balance thereof.

SEC. 510. LIMITATION ON AGENT AND ATTORNEY FEES.

    Any remuneration on account of services rendered on behalf of any 
claimant, or any association of claimants, in connection with any claim 
or claims under this title may not exceed 5 percent of the amount paid 
on such claim or claims under this title. Any agreement to the contrary 
shall be unlawful and void. Whoever, in the United States or elsewhere, 
demands or receives, on account of services so rendered, any 
remuneration in excess of the maximum permitted by this section shall 
be guilty of a misdemeanor and, upon conviction thereof, shall be fined 
in accordance with title 18, United States Code, imprisoned not more 
than 12 months, or both.

SEC. 511. DISCLAIMER.

    No provision of this title shall constitute an obligation of the 
United States to pay any claim arising out of war. The compensation 
provided under this title is ex gratia in nature and intended solely as 
a means of recognizing the demonstrated loyalty of the people of Guam 
to the United States, and the suffering and deprivation arising 
therefrom, during World War II.

SEC. 512. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the administrative responsibilities of the Board 
for the 36-month period beginning on the date of the appointment of the 
ninth member of the Board.

                  TITLE VI--DELEGATE FROM PUERTO RICO

SEC. 601. REDESIGNATION OF RESIDENT COMMISSIONER FROM PUERTO RICO.

    (a) In General.--Section 36 of the Act of March 2, 1917 (39 Stat. 
963; 48 U.S.C. 891-893) is amended--
            (1) by striking ``Resident Commissioner'' each place it 
        appears and inserting ``Delegate''; and
            (2) by striking ``Commissioner'' each place it appears and 
        inserting ``Delegate''.
    (b) Conforming Reference.--All references in other laws to the 
Resident Commissioner to the United States from Puerto Rico shall be 
considered to refer to the Delegate to the United States from Puerto 
Rico.

SEC. 602. TERM OF OFFICE OF DELEGATE.

    (a) Two-year Term of Office.--Section 36 of the Act of March 2, 
1917 (39 Stat. 963; 48 U.S.C. 891) is amended in the second sentence by 
striking ``four'' and inserting ``two''.
    (b) Exception.--The amendment made by this section shall not apply 
to any individual who holds the office of Resident Commissioner to the 
United States from Puerto Rico on the day before the date of the 
enactment of this Act.

SEC. 603. PROCEDURE TO FILL VACANCY.

    Section 36 of the Act of March 2, 1917 (39 Stat. 963; 48 U.S.C. 
891) is amended in the last sentence by striking ``the governor'' and 
all that follows and inserting ``the office shall remain vacant until a 
successor is elected and qualified. The successor may be elected in a 
special election under such regulations as may be prescribed by law, in 
which case the successor shall serve until the next general election 
and until the next Delegate is elected and qualified.''.

TITLE VII--CONSULTATION OF AND EFFORTS TO INCLUDE TERRITORIES REGARDING 
                         FREE TRADE AGREEMENTS

SEC. 701. CONSULTATION OF AND EFFORTS TO INCLUDE TERRITORIES.

    (a) Territories in the Caribbean.--
            (1) Consultation.--The President shall consult with 
        representatives chosen by the territorial governors of Puerto 
        Rico and the Virgin Islands regarding any aspect of the process 
        advanced by the Miami Summit of the Americas Declaration of 
        Principles, on December 9, 1994, that would have an impact on 
        Puerto Rico or the Virgin Islands, respectively, including the 
        development of the agreement regarding ``Free Trade of the 
        Americas''.
            (2) Efforts to include in process regarding free trade 
        agreements.--The President shall make every reasonable effort, 
        as the President determines to be appropriate, to include 
        representatives chosen by the territorial governors of Puerto 
        Rico and the Virgin Islands in the United States delegation to 
        any working group or task force regarding any aspect of the 
        process advanced by the Miami Summit of the Americas 
        Declaration of Principles, on December 9, 1994, that would have 
        an impact on Puerto Rico or the Virgin Islands, respectively, 
        including the development of the agreement regarding ``Free 
        Trade of the Americas''.
    (b) Territories in the Pacific.--
            (1) Consultation.--The President shall consult with 
        representatives chosen by the territorial governors of American 
        Samoa, Guam, and the Northern Mariana Islands regarding any 
        aspect of the process advanced by the Bogor Asia-Pacific 
        Economic Cooperation Leaders' Declaration of Common Resolve, on 
        November 15, 1994, that would have an impact on American Samoa, 
        Guam, or the Northern Mariana Islands, respectively, including 
        the goal of free trade among APEC members by the year 2020.
            (2) Efforts to include in process regarding free trade 
        agreements.--The President shall make every reasonable effort, 
        as the President determines to be appropriate, to include 
        representatives chosen by the territorial governors of American 
        Samoa, Guam, and the Northern Mariana Islands in the United 
        States delegation to any working group or task force regarding 
        any aspect of the process advanced by the Bogor Asia-Pacific 
        Economic Cooperation Leaders' Declaration of Common Resolve, on 
        November 15, 1994, that would have an impact on American Samoa, 
        Guam, or the Northern Mariana Islands, respectively, including 
        the goal of free trade among APEC members by the year 2020.

SEC. 702. TARIFF TREATMENT OF TERRITORIES.

    (a) Tariff treatment comparable to treatment of treaty countries.--
Subject to subsection (b), the President shall give to American Samoa, 
Guam, the Northern Mariana Islands, and the Virgin Islands no less 
favorable tariff treatment than that accorded to countries who are 
party to the North American Free Trade Agreement or to other free trade 
agreements to which the United States becomes a party.
    (b) Tariff staging agreement between territory and united states.--
            (1) In general.--Subsection (a) shall apply to American 
        Samoa, Guam, the Northern Mariana Islands, or the Virgin 
        Islands only if the government of American Samoa, Guam, the 
        Northern Mariana Islands, or the Virgin Islands, as the case 
        may be reaches a tariff staging agreement with the President. 
        Such agreement shall provide that tariffs between American 
        Samoa, Guam, the Northern Mariana Islands, or the Virgin 
        Islands, as the case may be, and the United States shall be 
        phased out in equal annual increments over a period of not more 
        than 10 years, beginning on the date of the completion of the 
        agreement.
            (2) Consultation regarding agreement.--Upon the request of 
        the government of American Samoa, Guam, the Northern Mariana 
        Islands, or the Virgin Islands, the President shall consult 
        with the representative chosen by the governor of such 
        territory regarding the development of a tariff staging 
        agreement described in paragraph (1).

SEC. 703. INCLUSION OF TERRITORIES IN CUSTOMS TERRITORY AND FREE TRADE 
              AGREEMENTS.

    Upon completion of a tariff staging agreement, as described in 
section 702(b)(1), between the United States and American Samoa, Guam, 
the Northern Mariana Islands, or the Virgin Islands and upon the 
phasing out of tariffs as provided for in the agreement--
            (1) American Samoa, Guam, the Northern Mariana Islands, or 
        the Virgin Islands, as the case may be, shall be included in 
        the customs territory of the United States; and
            (2) the President shall take all steps that the President 
        determines to be necessary to include American Samoa, Guam, the 
        Northern Mariana Islands, or the Virgin Islands, as the case 
        may be, in the North American Free Trade Agreement and all 
        other free trade agreements to which the United States is a 
        party.
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