[Congressional Record (Bound Edition), Volume 146 (2000), Part 11] [House] [Pages 16147-16150] [From the U.S. Government Publishing Office, www.gpo.gov]GUAM OMNIBUS OPPORTUNITIES ACT Mr. HANSEN. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2462) to amend the Organic Act of Guam, and for other purposes, as amended. The Clerk read as follows: H.R. 2462 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 ``Guam Omnibus Opportunities Act''. SEC. 2. GUAM LAND RETURN ACT. (a) Short Title.--This section may be cited as the ``Guam Land Return Act''. (b) Transfer of Excess Real Property.-- (1) Notice of availability.--Except as provided in subsection (e), before screening excess real property located on Guam for further Federal used under section 202 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), the Administrator shall notify the Government of Guam that the property is available for transfer to the Government of Guam pursuant to this section. (2) Opportunity for acquisition by guam.--If the Government of Guam, within 180 days after receiving notification under paragraph (1) with regard to certain real property, notifies the Administrator that the Government of Guam intends to acquire the property under this section, the Administrator shall transfer such property to the Government of Guam in accordance with subsections (c) and (d). Otherwise, the Administrator shall dispose of the property in accordance with the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). (c) Compensation.--A transfer of excess real property under subsection (b) to the Government of Guam for a public purpose shall be made without reimbursement or other compensation from the Government of Guam. (d) Conditions.-- (1) Restrictive covenants.--All transfers of excess real property under subsection (b) to the Government of Guam shall be subject to such restrictive covenants as the Administrator determines to be necessary to ensure that-- (A) the use of the property is compatible with continued military activities on Guam; (B) the use of the property is consistent with the environmental condition of the property; (C) access is available to the United States to conduct any additional environmental remediation or monitoring that may be required; (D) to the extent the property was transferred for a public purpose, the property is so used; and (E) to the extent the property has been used by another Federal agency for a minimum of two years, the transfer to the Government of Guam is subject to the terms and conditions of those permit interests until the expiration of those permits. (2) Consultation.--In the case of real property reported excess by a military department and in all cases with respect to paragraph (1)(A), the Administrator shall consult with the Secretary of Defense regarding the restrictive covenants to be imposed on a transfer of the property. (3) Other laws.--All transfers of excess real property under subsection (b) to the Government of Guam are subject to all otherwise applicable Federal laws, except section 2696 of title 10, United States Code. Any property that the Government of Guam has the opportunity to acquire under subsection (b) shall not be subject to section 501 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411). (e) Exemptions.--Notwithstanding that real property located on Guam and described in this subsection may be excess real property, this section shall not apply-- (1) to real property on Guam that is located within the Guam National Wildlife Refuge, which shall be transferred in accordance with subsection (f); (2) to real property described in the Guam Excess Lands Act (Public Law 103-339, 108 Stat. 3116), which shall be disposed of in accordance with such Act; or (3) to real property on Guam that is declared excess as a result of a base closure law. (f) Treatment of Guam National Wildlife Refuge Lands.-- (1) Notification of availability; negotiations.--The Administrator shall notify the Government of Guam and the Fish and Wildlife Service that real property within the Guam National Wildlife Refuge has been declared excess. The Government of Guam and the Fish and Wildlife Service shall have 180 days to engage in discussions toward an agreement providing for the future ownership and management of the real property. (2) Transfer and management under agreement.--If the parties reach an agreement under paragraph (1) within the 180-day period and the [[Page 16148]] agreement is submitted to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Resources of the United States House of Representatives not less than 60 days prior to any transfer of the real property under the agreement, the property shall be transferred and managed in accordance with the agreement. Any such transfer shall be subject to the other provisions of this section. (3) Effect of lack of agreement.--If the parties do not reach an agreement under paragraph (1) within the 180-day period, the Administrator shall provide a report to Congress on the status of the discussions, together with recommendations on the likelihood of resolution of differences and the comments of the Fish and Wildlife Service and the Government of Guam. If the subject property is under the jurisdiction of a military department, the Secretary of the military department may transfer administrative control over the property to the General Services Administration. Absent an agreement on the future ownership and use of the property, the property may not be transferred to another Federal agency or out of Federal ownership except pursuant to an Act of Congress specifically identifying the property. (4) Eventual agreement.--If the parties come to an agreement prior to congressional action in response to a report under paragraph (3) and the agreement is submitted to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Resources of the United States House of Representatives not less than 60 days prior to any transfer of the real property under the agreement, the real property shall be transferred and managed in accordance with the agreement. Any such transfer shall be subject to the other provisions of this section. (g) Dual Classification Property.--If a parcel of real property on Guam that is declared excess as a result of a base closure law also falls within the boundary of the Guam National Wildlife Refuge, such parcel of property shall be disposed of in accordance with the base closure law. (h) Authority To Issue Regulations.--The Administrator of General Services, after consultation with the Secretary of Defense and the Secretary of Interior, may issue such regulations as the Administrator deems necessary to carry out this section. (i) Definitions.--For the purposes of this section: (1) The term ``Administrator'' means-- (A) the Administrator of General Services; or (B) the head of any Federal agency with the authority to dispose of excess real property on Guam. (2) The term ``base closure law'' means the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note), or similar base closure authority. (3) The term ``excess real property'' means excess property (as that term is defined in section 3 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 472)) that is real property and was acquired by the United States prior to the enactment of this section. (4) The term ``Guam National Wildlife Refuge'' includes those lands within the refuge overlay under the jurisdiction of the Department of Defense, identified as Department of Defense lands in figure 3, on page 74, and as submerged lands in figure 7, on page 78 of the ``Final Environmental Assessment for the Proposed Guam National Wildlife Refuge, Territory of Guam, July 1993'' to the extent that the Federal Government holds title to such lands. (5) The term ``public purpose'' means those public benefit purposes for which the United States may dispose of property pursuant to section 203 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484), as implemented by the Federal Property Management Regulations (41 CFR 101-47) or other public benefit uses provided under the Guam Excess Lands Act (Public Law 103-339; 108 Stat. 3116). SEC. 3. GUAM FOREIGN DIRECT INVESTMENT EQUITY ACT. (a) Short Title.--This section may be cited as the ``Guam Foreign Direct Investment Equity Act''. (b) In General.--Subsection (d) of section 31 of the Organic Act of Guam (48 U.S.C. 1421i) is amended by adding at the end the following new paragraph: ``(3) In applying as the Guam Territorial income tax the income-tax laws in force in Guam pursuant to subsection (a) of this section, the rate of tax under sections 871, 881, 884, 1441, 1442, 1443, 1445, and 1446 of the Internal Revenue Code of 1986 on any item of income from sources within Guam shall be the same as the rate which would apply with respect to such item were Guam treated as part of the United States for purposes of the treaty obligations of the United States.''. (c) Certain Guam-Based Trusts Exempt.--The provisions of this section shall not apply to any Guam-based trust formed pursuant to Division 2 of Title 11, Chapter 160, of the Guam Code Annotated. (d) Effective Date.--The amendment made by subsection (b) shall apply to amounts paid after the date of the enactment of this Act. SEC. 4. IMPORTATION OF BETEL NUTS (``ARECA NUTS'') FOR PERSONAL CONSUMPTION. (a) In General.--Notwithstanding any other provision of law (including sections 402 and 801 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 342 and 381)), Guam shall be deemed to be within the customs territory of the United States in the case of importation from Guam into the United States of betel nuts (also known as ``areca nuts'') by an individual for personal consumption by the individual. (b) Definitions.--In this section: (1) Betel nuts.--The term ``betel nuts'' means husked betel nuts grown in Guam. (2) Customs territory of the united states.--The term ``customs territory of the United States'' has the meaning given the term in general note 2 of the Harmonized Tariff Schedule of the United States. SEC. 5. COMPACT IMPACT REPORTS. Paragraph 104(e)(2) of Public Law 99-239 (99 Stat. 1770, 1788) is amended by deleting ``President shall report to the Congress with respect to the impact of the Compact on the United States territories and commonwealths and on the State of Hawaii.'' and inserting in lieu thereof the following: ``Governor of any of the United States territories or commonwealths or the State of Hawaii may report to the Secretary of the Interior by February 1 of each year with respect to the financial and social impacts of the compacts of free association on the Governor's respective jurisdiction. The Secretary of the Interior shall review and forward any such reports to the Congress with the comments and recommendations of the Administration. The Secretary of the Interior shall, either directly or, subject to available technical assistance funds, through a grant to the affected jurisdiction, provide for a census of Micronesians at intervals no greater than five years from each decennial United States census using generally acceptable statistical methodologies for each of the impact jurisdictions where the Governor requests such assistance, except that the total expenditures to carry out this sentence may not exceed $300,000 in any year.''. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Utah (Mr. Hansen) and the gentleman from Guam (Mr. Underwood) each will control 20 minutes. The Chair recognizes the gentleman from Utah (Mr. Hansen). Mr. HANSEN. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the Guam Omnibus Opportunities Act, H.R. 2462, introduced by the gentleman from Guam (Mr. Underwood) has been developed on a bipartisan basis and contains four provisions affecting our territory in the Western Pacific. The bill proposes to, one, provide Guam the right of first refusal for the return of future lands currently in possession of the Federal Government; two, allows the government to lower the withholding tax rates imposed on foreign investors to equal that of the treatment of States under U.S. treaties with other nations; three, provides a narrow interpretation for Guam to be included in the U.S. Customs Zone for the purpose of importing betel nuts by an individual for personal consumption; and, four, authorizes the governors of the territories and the State of Hawaii to report to the Secretary of the Interior Department on the financial and social impacts of the Compacts of Free Association on their respective jurisdictions. Mr. Speaker, I would like to add that our staff person, Manase Mansur, this is the last bill that he has worked on. He has done us a great job on the committee, and we wish him well in his future endeavors. I urge the support of Members for this measure. Mr. Speaker, I reserve the balance of my time. Mr. UNDERWOOD. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, as you may understand, this bill is very important to me and to the people of Guam. I certainly want to thank all of those involved, especially the staff on both sides; the gentleman from Alaska (Chairman Young); and the ranking member, the gentleman from California (Mr. George Miller). I thank the gentleman for the words of support, and I also want to publicly thank the staff for their work, on both sides, including Manase Mansur. This is shocking news to me, that he is departing the scene. But, in any event, as indicated, H.R. 2462 is omnibus legislation that is comprised of four distinct sections to address issues relevant to my home island. The legislation provides Guam [[Page 16149]] the right of first refusal for the return of future lands currently in the possession of the Federal Government; allows the government to lower the withholding tax rates imposed on foreign investors in order to equal it to the treatment of States under U.S. treaties with other nations; provides a narrow interpretation for Guam to be included in the U.S. Customs Zone for the purpose of importing betel nuts for personal consumption; and authorizes the governors of the territories and the State of Hawaii to report to the Secretary of Interior on the financial and social impacts of the Compacts of Free Association on their respective jurisdictions. Mr. Speaker, as you can imagine, one of the most valuable resources to an island is land. For smaller islands, such as Guam, whose land mass is approximately 212 square miles, land is highly valued and highly treasured. For Guam, much of our treasure was obtained by the Federal Government in the years following World War II to assist in the defense of our nation. Nearly one-third of Guam, or roughly 44,000 acres, was kept by the U.S. for use by our military. It is easy to understand why this would be the case, because of Guam's strategic location to Asia, and it is understandable that our military continued to retain this property throughout the Cold War. But the Cold War is now over, and although we still have some genuine concerns over the instability of some Asian countries, excess Federal property on Guam should be returned to Guam, and we have worked this very closely with the Department of Defense. In the 103rd Congress I was successful in getting legislation passed in Congress to return 3,200 acres of Federal land to the Government of Guam for public benefit, and I am pleased to acknowledge the work of our good friend the gentleman from Utah (Mr. Hansen) on that particular bill, and I am pleased that 900 acres were deeded over to the Government of Guam just last month, and I am anxious for the return of more property. H.R. 2462 builds on this policy of returning excess Federal property on Guam to the Government of Guam before it is offered to other Federal agencies or organizations. This legislation establishes a process where the Government of Guam is notified that Federal land is excess, and the island then has the opportunity to acquire it at no cost for public benefit purposes. H.R. 2462 also provides for a process for the Government of Guam and the U.S. Fish and Wildlife Service to engage in negotiations on the ownership and management of declared Federal excess lands within the Guam National Wildlife Refuge. The administration, in discussion on this particular section of the bill, has raised some concerns on this part of the bill; and I assured them I will work with them to make sure that land is returned and used for a clear public purpose. H.R. 2462 also addresses an issue that could have great economic potential for Guam. The Organic Act of Guam authorized the local Government to implement a mirror image tax system the same as the U.S. Internal Revenue Code. The Internal Revenue Code, unfortunately, imposes a withholding tax of 30 percent on foreign investors, except that in the case of the rest of the United States these rates have been adjusted according to treaty obligations negotiated by the United States with foreign countries. However, Guam is not included in those tax treaties. This section simply asks that Guam be treated the same as every other jurisdiction in the United States for purposes of withholding tax for foreign investors. This omission has cost us some foreign investment, and this is a very critical time for our island. We are suffering over 15 percent unemployment due to the downturn in Asia. We think that this will give us an opportunity to recover some of our economic success we had earlier in the 1990s. A third section of H.R. 2462 has received a lot of attention in Guam, not a lot of attention here, and it is humorous for many of our constituents. My people chew the betel nut. The betel nut in a mature form is a hard nut which has been banned from movement across the Customs Zone. Because Guam is outside the Customs Zone, we are sometimes treated as foreigners for this particular purpose. What this bill does is it does not allow it to be brought in for agricultural problems, it just says if it is for personal consumption, then it should be allowed to go through the Customs Zone. The last section of the bill is equally of great concern, not only for Guam, but other U.S. areas like the Commonwealth of the Northern Marianas and the State of Hawaii. This authorizes the governors of those areas to submit a report and requires the Department of Interior to respond relative to the impact of the right of citizens of three new States, three new independent nations, to freely migrate into the United States. This is good sense legislation. I want to again thank the gentleman from Alaska (Chairman Young) and the gentleman from California (Mr. George Miller) for working with me to address concerns raised by the administration during the full committee hearing. We did make some changes that addressed those concerns. I understand there may still remain some issues, but I am sure we can work with them as this legislation moves through the Senate. Mr. Speaker, I yield such time as he may consume to the gentleman from American Samoa (Mr. Faleomavaega). I am proud to say I am probably the only person who pronounces his name right. Mr. FALEOMAVAEGA. Mr. Speaker, I do want to commend the gentleman from Guam for pronouncing my name properly, and you yourself, you did very well. Sometimes I wish maybe my colleagues should call me John Wayne just for he the sense of making it a little more clear. Mr. Speaker, I do want to express my strong support of H.R. 2462, the Guam Omnibus Opportunities Act, chiefly sponsored by my good friend and colleague, the gentleman from Guam (Mr. Underwood). I want to commend the gentleman, who also serves as the Chairman of the Asian-Pacific Congressional Caucus. I also want to thank the gentleman from Utah (Mr. Hansen) for his management of this legislation, and certainly want to commend him for his assistance. Mr. Speaker, the return of Federal excess land to the people of Guam is an issue that has been under discussion for far too long. While the policy of offering Federal land to other Federal agencies when it is no longer needed by one agency is sound for most land in the continental United States, the history of these lands is often different in insular areas, and the Territory of Guam is an example. In Guam, one-third of the land on the island is owned by the Federal Government and was taken, in most cases, for military purposes. Perhaps our colleagues are not aware of the fact that we currently have about a $10 billion presence of military bases, military equipment and personnel currently now on the island of Guam. Now that the land is no longer needed, it should be returned to its previous owners, or, at a minimum, as it is done in this bill, give the local Government the option of acquiring it. I note in the last Congress, Mr. Speaker, the Senate passed a similar piece of legislation, and I hope that we can get this provision through both houses of the Congress this year. Mr. Speaker, it is unfortunate that Guam has to come to Congress every time it wants to amend the Tax Code applicable to its own residents. As has been noted, current law mandates a 30 percent withholding tax on foreign investors, yet it is lower than that for most foreign investors who invest in the 50 States. This is an obvious disincentive for investment in the Territory of Guam, and I am glad to see we are alleviating this burden today. I know this issue of betel nut consumption by the people of Guam has been an issue for some time. This bill addresses this problem by treating Guam as being within the U.S. customs territory for the purpose of importing betel nuts from Guam to the United States by an individual for personal consumption. While not important to [[Page 16150]] most Americans, I guess, it is of cultural significance to many of the people of Guam, and I suspect also my friends from the other islands of Micronesia. I certainly support this change in the law. Mr. Speaker, this legislation also addresses the continued problem caused by the migration of citizens from the freely associated States, the Federated States of Micronesia, the Republic of Palau and the Republic of the Marshall Islands. The residents from these entities migrate to Guam and other Pacific jurisdictions in the United States. Now, while Guam and Hawaii need more than a report to assist them with the impact of this migration, I do hope the report will provide the basis upon which substantial assistance can and will be provided, not only to Guam, but to all the affected Pacific jurisdictions. Again, Mr. Speaker, I want to commend the gentleman from Alaska (Chairman Young) and our ranking Democrat, the gentleman from California (Mr. George Miller), for their efforts in working with all the parties involved, and to get this legislation to the House, especially I want to commend the gentleman from Guam (Mr. Underwood), for his leadership in bringing this important bill to the floor. I urge my colleagues to support this legislation. Mr. UNDERWOOD. Mr. Speaker, I thank the gentleman from American Samoa for his kinds words. Mr. Speaker, I yield 2 minutes to the gentlewoman from the Virgin Islands (Mrs. Christensen). Mrs. CHRISTENSEN. Mr. Speaker, I thank the gentleman for yielding me time. I too rise in strong support of H.R. 2462, and I want to congratulate and commend my good friend from Guam (Mr. Underwood) for his tireless efforts and hard work over the several years it took to get this bill to this point today. As a cosponsor of H.R. 2462, I support the efforts of the gentleman from Guam (Mr. Underwood) to return land that was taken by the U.S. Government from the people of Guam during World War II. H.R. 2462 will address this issue by providing a process for the Government of Guam to receive lands from the U.S. Government for specified public purposes by giving Guam the right of first refusal of declared Federal excess lands by the General Services administrator prior to it being made available to any other Federal agency. {time} 1700 Mr. Speaker, the people of Guam have suffered greatly because of their love for this country. Guamanians have been under U.S. sovereignty since 1898. During World War II, Japanese forces invaded and took control of Guam for 32 months. The people of Guam suffered atrocities, including executions, rapes, beatings, imprisonment, forced labor and forced marches, primarily due to their continued loyalty to the United States. Mr. Speaker, the people of Guam have been seeking to have the issues of the return of Guam lands and restitution to Guamanians who suffered atrocities in World War II addressed for more than a decade now. It is time that they be resolved. How much longer must we make the people of Guam wait? As for myself, I pledge to do all that I can to assist the gentleman from Guam (Mr. Underwood) in finding a resolution to these issues that is acceptable to the people of Guam. I ask my colleagues to also support the people of Guam and to support this legislation. Mr. UNDERWOOD. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I just want to again thank everyone who worked hard with the staffs of both sides, my own staff, Nick Minella, who is also leaving. With that, I want to thank the gentleman from Utah (Mr. Hansen) for his support and kind words. I would like to thank again the gentleman from California (Mr. George Miller) and the gentleman from Alaska (Mr. Young) for their support on this effort. Mr. GEORGE MILLER of California. Mr. Speaker, I rise in support of H.R. 2462--the Guam Omnibus Opportunities Act--of which I am a cosponsor along with the Chairman of the Resources Committee. I recognize and congratulate our colleague from Guam, Mr. Underwood, for his hard work and collaboration with the staff of the Committee to craft legislation which addresses some very complex issues facing the people of Guam. Some may not realize how difficult a job it is for the delegates from the territories to move legislation through the Congress and I, for one, am glad that we are considering Mr. Underwood's legislation today. The Guam Omnibus Opportunities Act is legislation which, among other things, addresses two very important issues for the people of Guam--the future return of federal excess lands on Guam and the expansion of the island's economy. H.R. 2462 puts into place, a process wherein the government of Guam is given first consideration in the return of federal excess land. As chairman of the Resources Committee during the 103rd Congress, we passed legislation, authored by Mr. Underwood, which identified 3,200 acres of federal excess lands no longer needed by the federal government for return to the government of Guam to benefit the people of Guam. This was the first step in helping to address the very unique circumstances of Guam's history and the federal acquisition of 1/3 of the island after WWII for purposes of national defense. Currently, the return of excess federal land is governed by the General Service Administration's land return process which can completely prevent Guam from regaining the land, in favor of other federal interests. H.R. 2462 builds upon the success of our work during the 103rd Congress and establishes a process in which federal property no longer necessary for the continuing operations of the defense of our nation is returned to the government of Guam for uses consistent with benefitting the island's community. H.R. 2462 also contains a novel approach to increase investment into Guam by allowing the government to match the withholding tax rates of foreign investors to equal the same rate offered in U.S. treaties for foreign investors doing business in the 50 states. Guam's U.S. ``mirror image'' tax system was instituted with the passage of its organic act in 1950. The Internal Revenue Code requires a withholding tax rate of 30 percent on foreign investors with the exception of withholding tax rates negotiated in U.S. treaties with foreign nations. These rates are often lowered to encourage foreign investment into the United States. It is often the case, however, that the definition of the United States does not include Guam or the other U.S. territories. The exclusion of the territories, has for better or worse, penalized Guam in this instance since the majority of their private sector development has come from foreign sources. Amending Guam's Organic Act to equal the withholding tax rate under U.S. treaties will boost their attraction to foreign investors and benefit the island's long-term private sector diversification. I am mindful that over the past several years, the economy of Guam has spiraled downwards due to decreased military presence and the slumping economies in Asia. I am happy that we are attempting to address these issues in terms of making future excess federal land available to the island government for public benefit uses and the lifting of restrictive taxes on foreign investors. I thank Mr. Underwood again for his legislation and urge my colleagues to support H.R. 2462--the Guam Omnibus Opportunities Act. Mr. UNDERWOOD. Mr. Speaker, I yield back the balance of my time. Mr. HANSEN. Mr. Speaker, I yield back the balance of my time. The SPEAKER pro tempore (Mr. Pease). The question is on the motion offered by the gentleman from Utah (Mr. Hansen) that the House suspend the rules and pass the bill, H.R. 2462, as amended. The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill, as amended, was passed. A motion to reconsider was laid on the table. ____________________