[Congressional Record Volume 149, Number 103 (Monday, July 14, 2003)]
[Extensions of Remarks]
[Pages E1471-E1472]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTRODUCTION OF THE COMPACT IMPACT REIMBURSEMENT ACT

                                 ______
                                 

                              HON. ED CASE

                               of hawaii

                    in the house of representatives

                         Monday, July 14, 2003

  Mr. CASE. Mr. Speaker, I join my colleague from Guam, Congresswoman 
Madeleine Bordallo, as an original cosponsor of the Compact-Impact 
Reimbursement Act, which she is introducing today. This legislation 
assists Hawaii and other U.S. jurisdictions with costs associated with 
migration resulting from the Compact of Free Association between the 
United States and the Federated States of Micronesia and the Republic 
of the Marshall Islands. The measure is a followup to hearings held by 
the House Resources and International Relations Committees on 
renegotiated expiring provisions of the Compact agreement.
  At the outset, let me say that I fully support our country's 
continued recognition of the strategic importance of the Freely 
Associated States to our national security interests in the Western 
Pacific Region, and the special relationships our countries have shared 
based on the U.N. trusteeship system as well as mutual respect and 
friendship.
  It should come as no surprise that my State of Hawaii continues to 
have great interest in U.S. policy toward these areas given our 
geographic proximity and close ties in the Pacific, and thus continues 
its historic support of the Compacts of Free Association. Having said 
that, however, we continue also our historic concerns with the U.S. 
Government's administration and coordination of Federal assistance and 
policy toward Micronesia, and especially the issue of Compact Impact 
Aid to Hawaii and other affected U.S. jurisdictions.
  The Administration has proposed, as part of the renegotiated Compact 
agreements, $15 million in Compact Impact Aid to be collectively shared 
by affected U.S. jurisdictions, including Hawaii.
  This level of assistance is completely inadequate, given the actual 
costs that all of our jurisdictions have incurred since 1986. Moreover, 
the Administration has provided no clear justification on where it even 
came up with the $15 million figure. In fact, in recent years, the 
Department of Interior has reported that supportable ``best estimates'' 
in 1997 for fiscal impact costs in our jurisdictions are over $30 
million annually.
  While Hawaii has spent more than $100 million on State benefits to 
FAS citizens since 1986, it has received less than $10 million in 
Compact Impact Aid from the Federal Government. In 2002 alone, the 
State of Hawaii estimates that it has spent over $32 million in 
assistance for FAS citizens, most on educational costs.
  I have repeatedly said that since our costs are primarily in the 
field of education and health care, then other Federal agencies, 
particularly the Departments of Education and Health and Human 
Services, should be part of an overall Federal and Compact Impact 
assistance strategy and program. The easiest route, of course, would be 
to simply increase the Compact proposal of $15 million to at least $35 
million in mandatory spending.
  Other ways to ameliorate Compact Impact costs include making FAS 
citizens eligible for key Federal social programs that will offset the 
costs borne by our jurisdictions and providing our jurisdictions with 
the clear authority to receive other Federal assistance and make 
referrals to DOD medical facilities. Today's legislation gives the 
Administration these other alternatives to providing assistance to our 
areas.
  A section-by-section summary of our proposal is as follows:

                  the compact-impact reimbursement act

       Objective--To amend the Compact of Free Association Act of 
     1985 (Public Law 99-239) to provide for more adequate 
     Compact-Impact aid to Guam, the State of Hawaii, the 
     Commonwealth of the Northern Mariana Islands (CNMI), and 
     American Samoa.
       Section 1. Short Title. The Compact-Impact Reimbursement 
     Act.
       Section 2. Appropriations and Medicaid Eligibility. 
     Increases Compact-Impact aid to $35 million per year to 
     mitigate impact on Guam, the State of Hawaii, the CNMI, and 
     American Samoa. Funding would be based on a pro rata formula 
     reflecting a census, to be conducted no less than every five 
     years, of citizens of the Freely Associated States (FAS) 
     living in Guam, the State of Hawaii, the CNMI, and American 
     Samoa; would provide FAS citizens who migrate to Guam, 
     Hawaii, the CNMI or American Samoa eligibility for Medicaid. 
     The Federal Medical Assistance Percentage (FMAP) for 
     providing health services would be 100 percent.
       Section 3. Food Stamps Eligibility. Would provide FAS 
     citizens who migrate to Guam, the State of Hawaii, the CNMI 
     or American Samoa eligibility for the food stamp program 
     under the Food Stamp Act of 1977.
       Section 4. Extension of Communicable Disease Control 
     Programs to Affected U.S. Jurisdictions. The Compact of Free 
     Association Act of 1985 would be amended to reauthorize 
     appropriations for grants to the Governments of the Federated 
     States of Micronesia, the Republic of the Marshall Islands, 
     the Republic of Palau, Guam, the State of Hawaii, the CNMI, 
     and American Samoa. Current law simply authorizes this 
     assistance for the Federated States of Micronesia.
       Section 5. Extends Referral Authority to Affected U.S. 
     Jurisdictions. Reauthorizes the availability of medical 
     facilities of the Department of Defense (DoD) for FAS 
     citizens upon referral by government authorities responsible 
     for the provision of medical services in the Federated States 
     of Micronesia, the Republic of the Marshall Islands, the 
     Republic of Palau, Guam, the State of Hawaii,

[[Page E1472]]

     the CNMI, and American Samoa. Current law only allows use of 
     DoD facilities for FAS citizens currently referred by the 
     governments of the Federated States of Micronesia and the 
     Republic of the Marshall Islands.
       Section 6. Authorizes Reconciliation of Medical Referral 
     Debts. Directs the United States Government to make available 
     to the governments of Federated States of Micronesia, the 
     Republic of the Marshall Islands, and the Republic of Palau 
     funds needed to pay obligations incurred for the use of 
     medical facilities in the United States, including in Guam, 
     the State of Hawaii, the CNMI, and American Samoa, prior to 
     October 1, 2003. Under current law, such authorization 
     applies to debt accrued before September 1, 1985.

  In closing, Mr. Speaker, I want to reiterate my support and, I 
believe, the support of my State for the Compacts, but also the great 
importance of adequate Compact Impact Aid to Hawaii, whether by 
appropriate general funding or legislation such as this or both.

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