I 111th CONGRESS 1st Session H. R. 3583 IN THE HOUSE OF REPRESENTATIVES September 16, 2009 Mr. Faleomavaega introduced the following bill; which was referred to the Committee on Natural Resources, and in addition to the Committee on 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 provide for a subsidy to sellers and buyers of fish directly delivered to American Samoa from vessels with United States fisheries endorsements that manufacture for the United States.

1.

Short title

This Act may be cited as the American Samoa Protection of Industry, Resources, and Employment Act or ASPIRE Act.

2.

Findings and Policy

(a)

Findings

Congress finds the following: (1)The tuna processing and manufacturing industry is by far the largest private-sector base of employment in American Samoa and serves as the critical foundation for the overall economy of American Samoa. The unique local economy created by the operation of tuna canneries is largely irreplaceable as an employment base. The canneries currently provide 80 percent of private sector employment in American Samoa, and generate more than $80,000,000 (30 percent) of the territory’s income from labor according to a recent Department of Labor report. Most other private sector jobs in American Samoa provide goods or services to the tuna processors. Moreover, the economic growth of many other private sector employers in the consumer retail and service sectors is tied either directly or indirectly to the tuna industry. (2)Over the past 30 years, direct employment growth in the fish processing industry has accounted for more than one-third of total job growth in American Samoa. Moreover, a recent study reflects that every job added to or subtracted from the economy by a change in employment in the tuna processing industry adds or subtracts another 0.47 jobs from other sectors of American Samoa’s economy, the so-called multiplier effect. (3)An important component of the tuna processing industry’s multiplier effect is derived from direct delivery of tuna by fishing vessels to American Samoa for processing, which results in revenue for the territory from visitor expenditures on vessel refueling, repair, and other shipyard services, stevedores, fishing net repairs, lodging, dining, and a host of other services. Unfortunately, while having provided limited economic benefit through indirect deliveries which ensured a constant supply of fish to the canneries, the large majority of the eligible fleet which fishes under the auspices of a United States flag and United States license no longer provides direct delivery or economic benefit to American Samoa, where many of them are home-ported, choosing rather to deliver their catch to massive carrier ships for purposes of transshipping their fish to be cleaned in low-wage labor rate countries. (4)Due to low-wage labor rates of 0.60 cents and less per hour for tuna cannery workers in competing countries, increased transportation and energy costs, decreased volumes of direct-delivered fish to American Samoa, recent Federal minimum wage policy changes that have resulted in mandatory annual wage increases, heavy foreign competition for United States market share in the tuna industry, and a number of other issues, one of American Samoa’s tuna canneries has announced that it will shut down by September 2009. This closure will result in job loss for nearly 40 percent of the territory’s private sector employees, as well as increased energy, shipping, and food costs for the remaining businesses and public entities because the canneries help subsidize the costs of these industries. (5)Closure of the remaining tuna processing plant would result in job loss for another 40 percent of private sector employees, and a recent study of the territory’s economy concluded that closure of the remaining tuna processing plant would result in total job loss of 44 percent of all employment in the territory, leaving the American Samoan Government, which receives significant operational and capital grants from the Federal Government, as the territory’s only significant employer. (6)Due to present dependence on the canneries and Federal aid, if both canneries leave American Samoa, only direct Federal assistance will remain to bridge the gap left by the loss of approximately $80,000,000 in private sector income from the tuna canneries. (7)The Department of the Interior has previously reported to Congress that in the absence of the revenue derived from the canneries, American Samoa, with its population of nearly 70,000, will be almost wholly dependent on direct assistance from the Federal Government, warning that the American Samoan economy will be devastated; (8)Having served, starting at the turn of the last century, as an important refueling station for American ships in the South Pacific, American Samoa has long held a position of strategic and historic importance to the United States, and over the years, American Samoans have sacrificed to help keep our country free, with many serving in the United States military. (9)In March 2006, it was reported to Congress that the sacrifice of American Samoa in the Iraq war was disproportionate to the territory’s small size, as residents of the territory were 15 times more likely to be killed in action in Iraq than residents of the United States as a whole. (b)

Policy

The Federal Government should provide employment stabilization and economic development assistance to the people of American Samoa, including incentives for the continued operation and development of American Samoa’s tuna processing industry, as the territory now faces severe economic conditions.

3.

Expansion of general technical assistance to American Samoa

Section 601 of the Act of December 24, 1980 (48 U.S.C. 1469d(d)) is amended by inserting at the end the following: (e)

Employment Security and Economic Development Assistance for American Samoa

(1)

Technical Assistance Grants

(A)The Secretary of the Interior is further authorized to provide technical assistance to the territory of American Samoa in the form of grants to sellers and buyers of whole tuna directly delivered to tuna processors located within American Samoa for processing in American Samoa, in the following amounts: (i)For each processor of whole tuna directly delivered to American Samoa for processing, as processing is defined in paragraph (6)(B): $200 per metric ton, provided that this amount shall be adjusted each May 25 by a ratio equal to the ratio of any increase in the federal minimum wage for American Samoa as compared to the Federal minimum wage in American Samoa the prior year. (ii)For each fishing vessel with a United States fishery endorsement (issued pursuant to section 12113 of title 46, United States Code) and which is otherwise authorized to fish for tuna in areas under the authority of the Western Pacific Regional Fishery Management Council or areas covered by the United States South Pacific Tuna Treaty, or which has an American Samoa Longline Limited Access Permit (issued pursuant to the Fishery Management Plan for Pelagic Fisheries of the Western Pacific Region established under the authority of section 1801 et seq. of title 18, United States Code): $200 per metric ton. (iii)For each fishing vessel that does not meet the requirements of clause (ii) but is United States-documented pursuant to section 12103 of title 46, United States Code, and is otherwise authorized to fish for tuna in areas under the authority of the Western Pacific Regional Fishery Management Council or areas covered by the United States South Pacific Tuna Treaty: $100 per metric ton. (B)A recipient of a grant under this subsection may be eligible either as a seller of direct-delivered whole tuna or as a processor buying direct-delivered whole tuna, but not both. (C)Grants provided under this subsection shall not be considered as gross income of the recipient for purposes of the Internal Revenue Code of 1986. (D)Grant amounts provided under this subsection shall not be subject to reduction by the Secretary for any operation or maintenance set aside. (2)

Collection of Annual and Transfer Fees for the Benefit of Economic Development in American Samoa

(A)All vessels meeting the requirements of clauses (ii) and (iii) of paragraph (1)(A) shall be subject to a $250,000 annual fee due and payable to the United States Treasury on January 31 each year for the immediately prior calendar year. This annual fee shall be waived for any calendar year for which the vessel certifies to the Secretary that the vessel has made not less than three direct deliveries in that calendar year of whole tuna to processors on American Samoa for processing in American Samoa. (B)Any vessel that is— (i)United States-documented pursuant to section 12103 of title 46, United States Code; (ii)authorized to fish for tuna under the United States South Pacific Tuna Treaty; and (iii)delivers tuna to another vessel or other location for the purposes of transshipment, shall be subject to a fee of 6.25 percent per metric ton per each such delivery, regardless of the date payment is received for the delivery. This fee shall be payable to the United States Treasury and shall be due no later than 30 days after the date of delivery.(3)

Creation of the American Samoa Economic Development Trust Fund

(A)There is created within the Treasury of the United States a trust fund to be known as the American Samoa Economic Development Trust Fund (in this subsection referred to as the Trust Fund), consisting of such amounts as may be credited or appropriated to the Trust Fund under this subsection or any other provision of law. (B)There is hereby appropriated to the Trust Fund amounts equivalent to the amounts received in the Treasury pursuant to subparagraphs (A) and (B) of paragraph (2). (C)The Trust Fund shall be administered by the Office of Insular Affairs of the Department of Interior. The Office of Insular Affairs shall pay monies from the Trust Fund to carry out the purposes of paragraph (1)(A) of this subsection. The Office of Insular Affairs may use any excess amounts to provide financial assistance to the territory of American Samoa in accordance with any of the Office’s existing or future programs. (4)

Rulemaking

Not later than 180 days after the date of the enactment of this Act but prior to May 1, 2010, whichever comes first, the Secretary shall prescribe such regulations and other guidance as may be necessary or appropriate to carry out the provisions of this subsection. Such regulations shall provide that the Technical Assistance Division of the Office of Insular Affairs shall be responsible for administering the provisions of this subsection and may not delegate its duties with regard to this subsection to any person or entity outside the Department of the Interior. (5)

Authorizations and Appropriations

(A)There is hereby authorized and appropriated to the Secretary of the Interior $25,000,000 for fiscal year 2010 to carry out the purposes of paragraph (1)(A). Further, there is hereby authorized such annual sums as may be necessary to carry out the purposes of paragraph (1)(A) in fiscal years after 2010. Sums appropriated pursuant to this subparagraph (A) shall remain available until expended, and shall not be available for administration of this subsection by the Department of the Interior. (B)There is authorized to be appropriated to the Secretary $300,000 for the Salaries and Expenses account of the Office of Insular Affairs to carry out the duties of the Office of Insular Affairs under this subsection, which amount shall remain available until expended and shall be in addition to any other amount appropriated to the Secretary for the Office of Insular Affairs. (6)

Definitions

As used in the subsection– (A)

Direct delivery

The term direct delivery means whole tuna caught by and moved from a fishing vessel that meets the criteria in clause (ii) or (iii) of paragraph (1)(A) directly to a processing facility located in American Samoa, for preparation for end-user consumption in the United States and its territories, which shall include placing the product in consumer-ready packaging. Direct delivery excludes the delivery of frozen tuna loins. (B)

Transshipment

The term transshipment means unloading any or all of the fish on board a fishing vessel onto another vessel or entity for the purpose of transporting that fish to another location for processing. .