[Congressional Record Volume 141, Number 55 (Friday, March 24, 1995)]
[Extensions of Remarks]
[Pages E685-E686]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             AMERICAN SAMOA ECONOMIC DEVELOPMENT ACT OF 1995

                                 ______


                       HON. ENI F.H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                        Thursday, March 23, 1995
  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to introduce the American 
Samoa Economic Development Act of 1995.
  For too many years American Samoa has been receiving assistance from 
the Federal Government on an annual basis. When 20 percent of a 
government's funding is dependent on annual appropriations of 
discretionary funds, it is difficult to make long-term plans.
  The bill I have worked on with Congressman Elton Gallegly, chairman 
of the Subcommittee on Native American and Insular Affairs, provides a 
secure source of funding for the territory of American Samoa. Coupled 
with other efforts, I believe we can develop American Samoa's 
infrastructure and reduce our Nation's annual deficit at the same time.
  I want to thank Chairman Gallegly for his support and assistance in 
preparing this legislation. Our bipartisan effort on this bill 
continues a long history of bipartisan legislation in the subcommittees 
which have had jurisdiction over the insular areas. As the new ranking 
Democratic member of the subcommittee, I intend to make every effort to 
continue this tradition.
   Mr. Speaker, I am submitting a copy of the bill for printing in the 
Congressional Record.
                                H.R. --

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2 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 in 
     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 
     phase-out of Federal subsidies for government operations.

     SEC. 3. 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, subject to the limits specified in the 
     table in subsection (b), be used for--
       (1) construction of capital assets of American Samoa;
       (2) maintenance and repair of such capital assets;
       (3) the operations of the Government of American Samoa; and
       (4) reduction of unbudgeted debt incurred by the Government 
     of American Samoa in fiscal years prior to 1996.
       (b) Table of Multiyear Funding.--The table referred to in 
     this subsection is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Deficit   Maintenance        
                                                  Year                            reduction   and repair        
                  Fiscal year                     No.   Operations  Construction    (100%       (100%      Total
                                                                                    match)      match)          
----------------------------------------------------------------------------------------------------------------
1996...........................................      1        23.0           5.5        3.0          3.0    34.5
1997...........................................      2        23.0           5.5        3.0          3.0    34.5
1998...........................................      3        23.0           5.5        3.0          3.0    34.5
1999...........................................      4        21.0           7.5        3.0          3.0    34.5
2000...........................................      5        18.0          10.5        3.0          3.0    34.5
2001...........................................      6        15.0          16.5  .........          3.0    34.5
2002...........................................      7        12.0          19.5  .........          3.0    34.5
2003...........................................      8         9.0          22.5  .........          3.0    34.5
2004...........................................      9         6.0          25.5  .........          3.0    34.5
2005...........................................     10         3.0          28.5  .........          3.0    34.5
----------------------------------------------------------------------------------------------------------------

       (c) Multiyear Availability of Appropriations.--Amounts not 
     expended in the year appropriated shall remain available 
     until expended.

     SEC. 4. ESTABLISHMENT OF TRUST.

       (a) In General.--The Government of American Samoa shall 
     establish a trust into which the amounts appropriated 
     pursuant to section 3 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 and passed by both Houses of the 
     Legislature of American Samoa pursuant to local law and shall 
     be a nongovernmental entity, bonded in an amount no less than 
     110 percent of the maximum amount of funds which will be held 
     in trust during any given fiscal year (hereafter in this Act 
     referred to as the ``trustee''). The trustee shall not be the 
     independent auditor required by section 7.
       (2) Replacement.--The trustee may be terminated only by 
     mutual agreement, 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 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.
       (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, and 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 5, 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 3(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 
     [[Page E686]] States Senate, the Committee on Resources and 
     the Committee on Appropriations of the United States House of 
     Representatives, and the Government of American Samoa. The 
     report shall include at a minimum the financial statements of 
     the account or accounts in which it holds trust funds 
     pursuant to this Act.

     SEC. 5. USES OF TRUST FUNDS.

       (a) Capital Needs.--
       (1) Master plan of capital needs.--For fiscal year 1997 and 
     all following years, no funds appropriated pursuant to this 
     Act 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 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, 
     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 pursuant to section 3(a)(1) 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.
       (3) 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 waste water until there is 
     established by local law semiautonomous government agencies 
     of the Government of American Samoa.
       (4) Maintenance plan and funding.--For fiscal year 1997 and 
     all following years, no funds appropriated pursuant to this 
     Act shall be released by the trustee for the construction of 
     capital assets until the Government of American Samoa, or the 
     appropriate semiautonomous government agency if required, 
     submits to the trustee a maintenance plan covering the 
     anticipated life of the project and the project is initially 
     funded. The maintanence 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 10 percent of the 
     cost of the project. Federal funds made available for the 
     purposes described in section 3(a)(2) may be used for one-
     half of the initial funding. Other Federal funds made 
     available pursuant to this Act 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 3(a)(4) 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 from revenue raised from non-Federal sources.
       (c) Maintenance and Repair.--Any funding made available 
     pursuant to section 3(a)(2) used for the maintenance or 
     repair of the capital assets of the Government of American 
     Samoa must be matched, on a dollar for dollar basis, for 
     funds provided by the Government of American Samoa from 
     revenue raised from non-Federal sources.
       (d) Prohibited Uses of Funds.--Neither the funds 
     appropriated pursuant to this Act, 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 governments.
     SEC. 6. 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 3(a)(3), and only for purposes caused 
     by extreme or national emergencies deemed unforseeable 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, only upon 
     completion of identifiable portions of the construction work 
     if the work is performed by employees of the Government of 
     American Samoa, or
       (2) a bona fide contractor of the Government of American 
     Samoa pursuant to the terms of a construction contract, on an 
     invoice presented to the Government of American Samoa and 
     approved by an appropriate official of the Government of 
     American Samoa.
       (c) Debt Reduction; Maintenance Repair.--Trust funds to be 
     used for unbudgeted debt reduction or maintenance and repair 
     made available under sections 3(a)(2) and 3(a)(4) shall be 
     released by the trustee on submission by the Government of 
     American Samoa of proof of payment from non-Federal sources 
     for either debt reduction, maintenance, or repair, and proof 
     acceptable to the trustee of an obligation due and owing for 
     the appropriate category.

     SEC. 7. AUDITS.

       (a) In General.--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 of 
     title 43, Code of Federal Regulations, and upon which an 
     independent auditor expresses an opinion that the financial 
     statements of the Government of American Samoa present 
     fairly, in all material respects, the financial position of 
     the Government of American Samoa, and were prepared in 
     conformity with generally accepted accounting principles. The 
     audit shall include the funds held in trust pursuant to the 
     Act.
       (b) Submission of Audit Report to United States.--Reports 
     of audits required in this section 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, 
     and the Committee on Resources and the Committee on 
     Appropriations of the United States House of Representatives 
     within 180 days of the end of each fiscal year for which the 
     United States provides funding under this Act.
       (c) Failure to Obtain Audit.--In the event the Government 
     of American Samoa does not obtain the audit within the time 
     required by this section, the trustee shall not disburse 
     additional funds pursuant to a section 3(a)(3) for the 
     operations of the Government of American Samoa until such 
     time as a qualifying audit is received 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 6 of this Act, even if a qualifying audit report is 
     not obtained.

     SEC. 8. AUTHORITY OF UNITED STATES TO AUDIT.

       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 Act shall be construed to 
     restrict the authority of these or other Federal agencies to 
     audit government funds as authorized by Federal law.

     SEC. 9. SETTLEMENT OF DISPUTES.

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

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