House Report 104-471 - OMNIBUS INSULAR AREAS ACT OF 1995

[House Report 104-471]
[From the U.S. Government Publishing Office]

104th Congress Report
HOUSE OF REPRESENTATIVES

2d Session 104-471
_______________________________________________________________________

OMNIBUS INSULAR AREAS ACT OF 1995
_______________________________________________________________________

March 5, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Young of Alaska, from the Committee on Resources, submitted the
following

R E P O R T

[To accompany H.R. 1332]

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill
(H.R. 1332) to establish certain policies and responsibilities
with respect to the administration of the Rongelap Resettlement
Trust Fund, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Omnibus Insular
Areas Act of 1995''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title.

TITLE I--RONGELAP

Sec. 101. Short title.
Sec. 102. Policy regarding assistance for resettlement of people of
Rongelap.
Sec. 103. Responsibilities relating to Rongelap Resettlement Trust
Fund.
Sec. 104. Trustee and other fund personnel.
Sec. 105. Resettlement expenditures and activities.
Sec. 106. Transfer of unexpended and unobligated funds.

TITLE II--AMERICAN SAMOA

Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Authorization of funding.
Sec. 204. Establishment of trust.
Sec. 205. Uses of trust funds.
Sec. 206. Disbursement of trust funds.
Sec. 207. Audits.
Sec. 208. Audits by the United States.
Sec. 209. Settlement of disputes.
Sec. 210. Criminal violations.
Sec. 211. Definitions.

TITLE III--COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

Sec. 301. Termination of annual direct grant assistance.

TITLE IV--TERRITORIAL ADMINISTRATIVE CESSATION ACT

Sec. 401. Short title.
Sec. 402. Congressional findings.
Sec. 403. Elimination of Office of Territorial and International
Affairs.
Sec. 404. Certain activities not funded.

TITLE I--RONGELAP

SEC. 101. SHORT TITLE.

This title may be cited as the ``Rongelap Recovery and Community
Self-Reliance Act''.

SEC. 102. POLICY REGARDING ASSISTANCE FOR RESETTLEMENT OF PEOPLE OF
RONGELAP.

The purposes of this title are to improve the legal and policy
framework for fulfillment of the objectives of section 103(i) of Public
Law 99-239 (99 Stat. 1783) and to prescribe the manner in which the
Rongelap Resettlement Trust Fund established pursuant to Public Law
102-154 (105 Stat. 1009) shall be administered in order to achieve the
goal of early and safe resettlement of the people of Rongelap. The
measures set forth in this title are appropriate and necessary in light
of the results of scientific studies on the habitability of Rongelap
conducted pursuant to section 103(i) of Public Law 99-239 and are
intended to enable the people of Rongelap to exercise greater self-
determination and local self-government, and to take control of their
own destiny and become more self-reliant, through a resettlement
program consistent with the wishes of the Rongelapese people
themselves. United States assistance to the people of Rongelap for
purposes of resettlement shall be as directed by Congress and will be
completed upon determination by Congress that the United States has
provided the total of its contribution to the rehabilitation of
Rongelap Island and resettlement of the Rongelap people pursuant to
section 103(i) of Public Law 99-239 and applicable provisions of Public
Law 102-154. All such assistance shall be subject to the financial
accountability provisions of this title and shall be provided within
the framework of the government-to-government relationship between the
Republic of the Marshall Islands and the United States as defined by
the Compact of Free Association Act of 1985.

SEC. 103. RESPONSIBILITIES RELATING TO RONGELAP RESETTLEMENT TRUST
FUND.

(a) Secretary of the Interior.--
(1) Transfer of funds to trustee of rongelap resettlement
trust fund.--Consistent with the Rongelap Resettlement Trust
Fund agreement between the Department of the Interior, the
Republic of the Marshall Islands, and the Rongelap Atoll Local
Government, dated May 13, 1992, funds appropriated in any
fiscal year for the purpose of increasing the corpus of the
Rongelap Resettlement Trust Fund shall be transferred by the
Secretary of the Interior to the trustee thereof, and the
Department of the Interior shall be administratively
responsible for effecting all such transfers of funds
appropriated for this purpose as required by law.
(2) Limitation of department of the interior activities to
those provided by trust fund agreement.--The activities of the
Department of the Interior with respect to management of the
Rongelap Resettlement Trust Fund shall be limited to those
provided for in the trust fund agreement referred to in
paragraph (1), as it may from time to time be amended.
(b) Trustee.--
(1) Duties, obligations and legal responsibilities.--The
duties, obligations and legal responsibilities of the trustee
with respect to the Rongelap Resettlement Trust Fund shall be
as set forth in the trust fund agreement referred to in
subsection (a)(1), to which the United States, the Republic of
the Marshall Islands and the Rongelap Atoll Local Government
are parties with legal rights and powers to enforce the terms
of the trust as set forth therein, and in applicable law.
(2) Distribution of funds.--All funds contributed to the
Rongelap Resettlement Trust Fund referred to in subsection (a)
of this section shall be distributed by the trustee and used as
determined by the Rongelap Atoll Local Government consistent
with applicable provisions of this title, Public Law 102-154,
and the resettlement plan submitted to the United States
Congress on March 15, 1995, in accordance with Report 103-551
of the House of Representatives, and referred to in Rongelap
Atoll Local Government Council Resolution No. 95-20.
(c) Audits.--
(1) In general.--In addition, management or use of trust
assets shall be subject to the authority of the Comptroller
General of the United States to conduct financial audits of all
trust transactions and activities, in the same manner as
provided in section 110(c) of Public Law 99-239. The Inspector
General of the Department of the Interior also shall be
authorized to audit the use of Rongelap Resettlement Trust Fund
assets.
(2) Notice regarding use of funds outside scope of trust.--If
at any time it is determined by the cognizant audit authority
that funds distributed by the trustee to the Rongelap Atoll
Local Government have been used for purposes outside the
statutory scope of the trust, such audit authority shall, at a
time and in a manner which is lawful and does not interfere
with any ongoing investigative process, law enforcement
activity or other activities or operations required under
applicable regulations and procedures, notify the chairman of
the Committee on Energy and Natural Resources of the United
States Senate, the chairman of the Committee on Resources of
the United States House of Representatives, the Republic of the
Marshall Islands, the Rongelap Atoll Local Government, and the
trustee, of such determination so that the trustee and the
parties to the trust agreement may exercise their legal rights
and powers, including recovery of such funds.
(d) Retention of United States Authority Over Trust Fund.--The United
States Congress shall retain its authority over the trust fund as set
forth in the trust agreement referred to in subsection (a)(1) and
applicable statutes, including Public Law 102-154.

SEC. 104. TRUSTEE AND OTHER FUND PERSONNEL.

(a) Trustee Qualifications.--The trustee of the Rongelap Resettlement
Trust Fund shall be a qualified United States financial institution
with considerable experience in the administration of similar trusts
and which serves as the trustee manager or custodian of over
$1,000,000,000 in assets. If the trustee on the date of enactment of
this Act does not meet the qualification criteria, a new trustee which
does satisfy these requirements shall in due course be appointed
subject to the procedures set forth in the trust fund agreement
referred to in section 103(a).
(b) Investment Fund Managers and Advisers and Consultants.--
Investment fund managers and advisers or consultants designated by the
Rongelap Atoll Local Government in accordance with the trust agreement
to provide services in connection with management of the Rongelap
Resettlement Trust Fund must be registered with the Securities and
Exchange Commission and be in compliance with applicable provisions of
the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.)

SEC. 105. RESETTLEMENT EXPENDITURES AND ACTIVITIES.

(a) Activities.--The Rongelap Atoll Local Government shall have the
discretion, to the extent determined by the Rongelap Atoll Local
Government Council acting within its lawful authority, to include in
the resettlement program activities described in the Memorandum of
Understanding of February 21, 1992, between the Department of the
Interior, Department of Energy, the Republic of the Marshall Islands,
and the Rongelap Atoll Local Government.
(b) Use of Annual Income.--
(1) In general.--With respect to each fiscal year following
the establishment of the Rongelap Resettlement Trust Fund
pursuant to Public Law 102-154, the authority of the Rongelap
Atoll Local Government and the trustee, within the statutory
scope and purpose of the trust, shall include distribution of
up to 50 percent of the annual income (interest and earnings)
of the trust fund, but in no year more than $500,000, increased
in accordance with paragraph (2), to provide local government
support and programs for the benefit of the people of Rongelap,
including funding for food, shelter, medicine, infant care,
sanitation, personal hygiene and other basic human needs
arising from dislocation and adjustment during resettlement, as
well as local government administrative and operations costs
and expenses arising directly from or which are directly
connected to the resettlement process.
(2) Adjustment.--The amount referred to in paragraph (1)
shall be increased annually by the same proportion as the
percentage increase in the United States Consumer Price Index
For All Urban Consumers (published by the Bureau of Labor
Statistics, Department of Labor) for the most recent year
preceding the date on which the increase, if any, is
calculated.
(c) Availability of Assistance for Resettlement in the Marshall
Islands Other Than on Rongelap.--
(1) Goal of resettlement on rongelap.--The Congress supports
the goal of enabling the entire Rongelap community to achieve
resettlement in accordance with Resolution Number 95-20 adopted
by the Rongelap Atoll Local Government Council on March 9,
1995, consistent with the findings of scientific studies
conducted pursuant to section 103(i) of Public Law 99-239 which
indicate that agreed upon radiation exposure limits can be met
at Rongelap Island if certain risk mitigation measures are
taken.
(2) Resettlement assistance.--(A) To ensure that members of
the Rongelap community who do not choose to return to Rongelap
in light of these scientific findings are able to end their
dislocation and settle somewhere in the Marshall Islands,
assistance for construction of family housing and other
resettlement assistance may be provided to members of the
Rongelap community who elect to settle at a location in the
Marshall Islands other than Rongelap Atoll on the same basis as
assistance provided for those who elect to return to Rongelap,
subject to the authority and discretion of the Rongelap Atoll
Local Government to determine the schedule, terms,
specifications and scope of such assistance in the context of
the overall community resettlement program at Rongelap Atoll,
which shall remain the primary objective for management and use
of trust fund assets.
(B) Assistance provided pursuant to subparagraph (A) to those
who elect to resettle at a place other than Rongelap shall not
include measures to be employed or benefits to be provided for
those resettling at Rongelap Atoll for the purpose of
mitigating risks posed by radiological conditions at Rongelap.
(C) Any Rongelapese person receiving assistance for
resettlement at a location other than Rongelap Atoll pursuant
to subparagraph (A) shall be ineligible for such assistance for
the purposes of resettling again later at Rongelap Atoll. The
preceding sentence shall cease to apply once all members of the
Rongelap community, as defined and recognized by the Nuclear
Claims Tribunal established pursuant to section 177 of the
Compact of Free Association (as contained in Public Law 99-
239), have received resettlement assistance at Rongelap or
assistance on the same basis, except as provided in
subparagraph (B), at another location of their choosing.
(3) Scope of trust.--The assistance activities authorized in
this section shall be deemed to be within the scope of the
trust notwithstanding any provision of Public Law 102-154 to
the contrary.
(d) Food Importation.--The trustee of the Rongelap Resettlement Trust
Fund shall make no distribution from the corpus of the Trust which as a
matter of prudent financial management in the judgment of the trustee
would be inconsistent with the objective of ensuring that funds will be
available for as long as the trust fund agreement referred to in
section 103(a)(1) is in effect for the purpose of providing imported
food and locally produced food which meets relevant health and safety
standards in amounts sufficient to meet the nutritional needs of the
Rongelap community residing at Rongelap Atoll.

SEC. 106. TRANSFER OF UNEXPENDED AND UNOBLIGATED FUNDS.

All funds appropriated pursuant to the authorization contained in
section 103(i) of Public Law 99-239 for scientific radiological studies
to determine the habitability of Rongelap Island in the Republic of the
Marshall Islands, or which have been obligated for use by the
``Rongelap Resettlement Project'' to support such studies, which as of
the date of enactment of this Act have not been expended shall be
transferred to the Rongelap Atoll Local Government and expended only
pursuant to a budget approved by the Rongelap Local Government Council
and for activities consistent with the purposes for which such funds
were appropriated, including scientific research and island
rehabilitation measures connected to resettlement of Rongelap.

TITLE II--AMERICAN SAMOA

SEC. 201. SHORT TITLE.

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

SEC. 202. 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 to 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 phaseout of Federal
subsidies for Government operations.

SEC. 203. 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 not be
released to the Government of American Samoa if the conditions in this
title are not met, and are subject to the limits specified in the table
in subsection (b), to be used for--
(1) construction of capital assets of American Samoa;
(2) the operations of the Government of American Samoa; and
(3) reduction of unbudgeted debt.
(b) Table of Multiyear Funding.--The table referred to in this
subsection is as follows:

[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Deficit
Fiscal year Year # Operations Construction reduction Total
(100% match)
----------------------------------------------------------------------------------------------------------------
1996............................................... 1 23.0 8.5 3.0 34.5
1997............................................... 2 23.0 8.5 3.0 34.5
1998............................................... 3 23.0 8.5 3.0 34.5
1999............................................... 4 21.0 10.5 3.0 34.5
2000............................................... 5 18.0 13.5 3.0 34.5
2001............................................... 6 15.0 19.5 34.5
2002............................................... 7 12.0 22.5 34.5
2003............................................... 8 9.0 25.5 34.5
2004............................................... 9 6.0 28.5 34.5
2005............................................... 10 3.0 31.5 34.5
----------------------------------------------------------------------------------------------------------------

SEC. 204. ESTABLISHMENT OF TRUST.

(a) In General.--The Government of American Samoa shall establish a
trust into which the amounts appropriated pursuant to section 203 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 with concurrence of the Secretary of the
Interior, and confirmed by both Houses of the Legislature of
American Samoa pursuant to local law, and shall be a United
States financial institution with considerable experience in
the administration of similar trusts and which serves as the
trustee manager or custodian of over $1,000,000,000 in trust
assets (hereafter in this title referred to as the
``trustee''). The trustee shall not be the independent auditor
required by section 207. The trustee shall be paid by the
Government of American Samoa.
(2) Replacement.--The trustee may be terminated only by
mutual agreement between the trustee and the Government of
American Samoa, 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 the 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 so long as such conditions do not
conflict with Federal laws or regulations or with applicable
trust fund agreement provisions governing administration of the
trust.
(4) Responsibility of trustee.--A qualified trustee appointed
under this title shall perform its duties subject to the
governing law of the jurisdiction in which the principal office
of the trustee is located. Administration of the trust to
achieve the objectives of this title shall be in accordance
with a trust fund agreement between the Government of American
Samoa and the trustee governing the trust. Such agreement shall
provide that the trustee shall use reasonable and prudent care
and reasonable and prudent due diligence in the exercise of the
powers and the performance of the duties prescribed in this
title and the trust agreement. The trust agreement may
prescribe further the specific duties of the trustee, as well
as those of other parties identified in this title, including
audit authorities and the Government of American Samoa.
(5) Liability.--
(A) In general.--The trustee shall be liable for any
release of funds which is not authorized by this title.
Upon a determination of liability under this
subsection, the trustee shall reimburse the United
States Treasury in the amount of the unauthorized
release of funds within 90 days of such determination.
(B) Exception.--The trustee shall not be liable for--
(i) any mistake or other action taken in good
faith, or for any loss unless resulting from
the trustee's own default, negligence, or bad
faith; or
(ii) any act or omission mandated by law or
by the process or final order of any court of
appropriate jurisdiction.
(C) Reimbursement.--In the event the trustee is
determined by a court to have acted in bad faith in
breach of its duties under this title, the trustee
shall reimburse the United States Treasury in the
amount of any loss resulting therefrom.
(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 pursuant to
regulations and direction of the Department of the Treasury,
and, to the extent such funds are available for investment, 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 205, 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 203(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 States Senate, the
Committee on Resources and the Committee on Appropriations of the
United States House of Representatives, the Government of American
Samoa, the Comptroller General of the United States, and the Inspector
General of the Department of the Interior. The report shall include at
a minimum the financial statements of the account or accounts in which
it holds trust funds pursuant to this title.

SEC. 205. USES OF TRUST FUNDS.

(a) Capital Needs.--
(1) Master plan of capital needs.--No funds appropriated
pursuant to this title 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, the relevant semiautonomous agency, or a
contractor 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, disposal of solid waste,
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 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. Funding made available for
construction of capital assets may only be used for projects
which comply with the procurement requirements set forth in
subtitle A of part 12, Code of Federal Regulations.
(3) Youth facilities.--At least $3,000,000 per year of any
funding made available pursuant to section 203(a)(1) may only
be used for the construction or repair of capital assets
primarily available for the school-age residents of American
Samoa, such as (but not limited to) school buildings, libraries
on school premises and the books contained therein, and
athletic facilities on school premises. Beginning with fiscal
year 1997, these projects shall be incorporated into the master
plan of capital needs required under paragraph (1). Facilities
for the American Samoa Community College are included within
the purview of this section. For fiscal year 1996, construction
of the following is authorized: $1,000,000 for a library for
the American Samoa Community College; $1,000,000 to expand the
gymnasium at the American Samoa Community College; $750,000 for
a gymnasium for Samoana High School; $100,000 for the
renovation of the library, computer room, and toilet facilities
at Fagaitua High School; $50,000 for the renovation of the
library, computer room and toilet facilities for Manu'a High
School; $50,000 for the renovation of the library and toilet
facilities at Aua Elementary School; and $50,000 for the
renovation of the library and toilet facilities for Fitiuta,
Faleasao, Ofu-Olosega, and Aunu'u Elementary Schools.
(4) 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 wastewater until there is
established by local law semiautonomous agencies of the
Government of American Samoa for the category in which the
funding is required.
(5) Maintenance plan.--For fiscal years 1997 and all
following years, ten percent of the estimated cost of each
project shall not be released by the trustee for the
construction of capital assets until the Government of American
Samoa, or the appropriate semiautonomous agency if required,
submits to the trustee a maintenance plan covering the
anticipated life of the project and the maintenance of the
project is initially funded. The maintenance 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 five
percent of the cost of the project. Federal funds made
available for the purposes described in section 203(a)(1) may
be used for the initial funding. Other Federal funds made
available pursuant to this title 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
203(a)(3) 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 or the relevant
semiautonomous agency from revenue raised from non-Federal sources.
(c) Prohibited Uses of Funds.--Neither the funds appropriated
pursuant to this title, 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 government.

SEC. 206. 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 203(a)(2), and only for purposes
caused by extreme or territorial emergencies deemed unforeseeable 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 or the relevant
semiautonomous agency, only upon completion of identifiable
portions of the construction work if the work is performed by
employees of the Government of American Samoa or the relevant
semiautonomous agency, or
(2) a bona fide contractor of the Government of American
Samoa or relevant semiautonomous agency pursuant to the terms
of a construction contract, on an invoice presented to the
Government of American Samoa or the relevant semiautonomous
agency and approved by appropriate officials of the Government
of American Samoa or the relevant semiautonomous agency.
(c) Debt Reduction.--Trust funds to be used for unbudgeted debt
reduction made available under section 203(a)(3) shall be released by
the trustee on submission by the Government of American Samoa or the
relevant semiautonomous agency of proof of payment from non-Federal
sources for debt reduction.

SEC. 207. AUDITS.

(a) In General.--
(1) Required.--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,
part 12 of title 43, Code of Federal Regulations, which
requires that an independent audit be made in accordance with
generally accepted government auditing standards covering
financial and compliance audits. The audit shall determine
whether the financial statements of the American Samoa
Government present fairly its financial position and the
results of its financial operations in conformance with
generally accepted accounting principles. The audit shall
include the funds held in trust pursuant to this title.
(2) Independent auditor's opinion.--Beginning with fiscal
year 2000, the audit required under this section must include
all the requirements of paragraph (1) and an independent
auditor's opinion that the financial statements of the
Government of American Samoa present fairly, in all material
respects, its financial position and the results of its
financial operations, in conformance with generally accepted
accounting principles.
(b) Submission of Audit Report to United States.--Reports of audits
required in this section along with the local government's corrective
action plan to resolve any deficiencies reported 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, the Committee on Resources
and the Committee on Appropriations of the United States House of
Representatives, the Comptroller General of the United States, and the
Inspector General of the Department of the Interior within 180 days of
the end of each fiscal year for which the United States provides
funding under this title.
(c) Failure To Obtain Audit.--In the event the Government of American
Samoa does not obtain a qualifying audit within the time required by
this section, the Inspector General of the Department of the Interior
shall notify the appropriate Federal agencies and the trustee not to
disburse additional funds available under section 203(a)(2) for the
operations of the Government of American Samoa, or any unobligated
funds available under section 203(a)(1) for the construction of capital
assets, until such time as a qualifying audit is received and the
previously reported deficiencies corrected 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 206 of this title, even if a qualifying audit
report is not obtained or the deficiencies identified by an audit have
not been corrected.

SEC. 208. AUDITS BY THE UNITED STATES.

(a) In General.--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 title shall be construed to restrict the authority of these or
other Federal agencies to audit government funds as authorized by
Federal law.
(b) Corrective Action.--Where appropriate, audit reports of the
Comptroller General and the Inspector General shall include reasonable
time limits on recommendations for corrective action. Such
recommendations and the respective time limits may be amended from time
to time as the audit authority deems appropriate. Deficiencies on which
recommendations for corrective action are made shall be designated
major or minor.
(c) Audit Comment.--The Government of American Samoa, and any
relevant semiautonomous agency, shall be afforded the opportunity to
comment on, and propose remedial action to, draft audit reports before
they become final, and the comments and proposed corrective action
shall be published as part of the final audit report.
(d) Other Laws.--The requirements of this section are in addition to
any other Federal law governing financial audits of American Samoa.
(e) Submission of Reports.--Audit reports prepared by the Comptroller
General or the Inspector General shall be submitted to the chairmen and
ranking members of the Committee on Energy and Natural Resources and
the Committee on Appropriations of the United States Senate, the
Committee on Resources and the Committee on Appropriations of the
United States House of Representatives, the Government of American
Samoa, and the trustee.
(f) Failure To Correct Deficiencies of United States Auditors.--If
the cognizant audit authority determines that the Government of
American Samoa has not corrected a major deficiency noted in audit
reports submitted pursuant to subsection (b) within the time prescribed
for that major deficiency, the cognizant audit authority shall notify
the appropriate Federal agencies and the trustee not to disburse
additional funds available under section 203(a)(2) for the operations
of the Government of American Samoa, or any unobligated funds available
under section 203(a)(1) for the construction of capital assets, until
such time as the cognizant audit authority notifies the trustee and the
appropriate Federal agencies that the major deficiency has been
corrected, or disallowed costs have been recovered, whichever may be
appropriate.
(g) Notice Regarding Use of Funds Outside Scope of Trust.--If at any
time it is determined by the cognizant audit authority that funds
distributed by the trustee to the Government of American Samoa have
been used for purposes outside the statutory scope of the trust, such
audit authority shall, at a time and in a manner which is lawful and
does not interfere with any ongoing investigative process, law
enforcement activity or other activities or operations required under
applicable regulations and procedures, notify the chairman and ranking
member of the Committee on Energy and Natural Resources of the United
States Senate, the chairman and ranking member of the Committee on
Resources of the United States House of Representatives, the Government
of American Samoa, and the trustee, of such determination so that the
trustee and the Government of American Samoa may exercise their legal
rights and powers, including recovery of such funds.

SEC. 209. SETTLEMENT OF DISPUTES.

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

SEC. 210. CRIMINAL VIOLATIONS.

Prosecution of violations of Federal or local criminal law which
occur concerning funds appropriated pursuant to this title may be
brought in local and Federal courts, as appropriate.

SEC. 211. DEFINITIONS.

As used in this title, the following definitions apply:
(1) The term ``area of disbursement'' means one of the three
authorized purposes for which funds may be disbursed found at
paragraphs (1) through (3) of section 203(a).
(2) The term ``cognizant audit authority'' means the
Comptroller General of the United States, or the Inspector
General of the Department of the Interior.
(3) The term ``extreme or territorial emergencies'' means
serious situations or occurrences which happen unexpectedly and
have a significant impact on the finances of the territory,
including acts of God which cause severe disruption of public
services such as transportation, medical services, and utility
services.
(4) The term ``master plan of capital needs'' means a list of
capital assets needed by the Government of American Samoa,
including any semiautonomous agencies which may be created
before or after the date of the enactment of this title, to
provide for efficient and effective operation of the
government. The master plan may be completed before or after
the date of the enactment of this title, so long as it meets
the requirements set forth in section 205.
(5) The term ``semiautonomous agency'' means an agency within
the executive branch of the Government of American Samoa which
has the following characteristics:
(A) The agency is created by local statute, either
before or after the date of the enactment of this
title.
(B) The agency is managed by a board of directors,
the individual directors of which are nominated by the
Governor of American Samoa and confirmed by the
Legislature of American Samoa.
(C) The terms of the directors are staggered.
(D) The board of directors has control over the
budget for that agency, although the entity may be
funded in part by grants or loans from the Federal
Government or the Government of American Samoa.
(E) The board of directors has the authority to set
rates or fees collected by the agency for the service
it provides, subject to local law.
(6) The term ``unbudgeted debt'' means debt incurred for a
lawful purpose by the Government of American Samoa, or any of
its agencies, departments, or offices, in fiscal years prior to
fiscal year 1996, including debt which has been caused because
more funds were spent than were lawfully appropriated for a
particular budget item or because revenue for a budget item did
not meet budgeted estimates.

TITLE III--COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

SEC. 301. TERMINATION OF ANNUAL DIRECT GRANT ASSISTANCE.

(a) Termination.--Pursuant to section 704(d) of the Covenant to
Establish a Commonwealth of the Northern Mariana Islands in Political
Union with the United States of America (48 U.S.C. 1681 note), the
annual payments under section 702 of the Covenant shall terminate as of
September 30, 1995.
(b) Repeal.--Sections 3 and 4 of the Act of March 24, 1976 (Public
Law 94-241; 48 U.S.C. 1681 note), as amended, are repealed, effective
October 1, 1995.
(c) Conforming Amendments.--Section 5 of such Act (48 U.S.C. 1681
note) is amended--
(1) by striking out ``agreement identified in section 3 of
this Act'' and inserting in lieu thereof ``Agreement of the
Special Representatives on Future United States Financial
Assistance for the Government of the Northern Mariana Islands,
executed July 10, 1985, between the special representative of
the President of the United States and the special
representatives of the Governor of the Northern Mariana
Islands''; and
(2) by striking out ``Committee on Interior and Insular
Affairs'' and inserting in lieu thereof ``Committee on
Resources''.

TITLE IV--TERRITORIAL ADMINISTRATIVE CESSATION ACT

SEC. 401. SHORT TITLE.

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

SEC. 402. CONGRESSIONAL FINDINGS.

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

SEC. 403. 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.

SEC. 404. CERTAIN ACTIVITIES NOT FUNDED.

Amounts may not be made available for the following program
activities for assistance to territories for fiscal years beginning
after September 30, 1995, as identified under the appropriations
account numbered 14-0412-0-1-808:
(1) technical assistance, item 00.12;
(2) maintenance assistance, item 00.14;
(3) disaster fund, item 00.17; and
(4) insular management controls, item 00.19.

Purpose of The Bill

The purpose of H.R. 1332 is to provide for increased self-
government in the insular areas.

Background and Need for Legislation

Rongelap Resettlement

In January 1986 Congress approved an overall settlement of
claims arising form the U.S. nuclear testing program conducted
in the Marshall Islands from 1946 to 1958 in Public Law 99-
239). The question of resettlement of Rongelap Island was not
resolved because it was reported to Congress in mid-1985 that
the entire Rongelap community had decided to abandon their
homeland due to uncertainty and concern about the risk to human
health posed by residual radiological contamination. As a
result, even though resettlement of Bikini and Eneertak was
provided for by the United States under the settlement, the
people of Rongelap remain a dislocated population.
However, due to the uncertainty and controversy surrounding
the Rongelap resettlement issue, Congress did provide for ``a
complete survey of radiation and other effects of the nuclear
testing program relating to the habitability of Rongelap
Island'' and authorized funds for an independent scientific
team to survey and prepare a report ``as to steps needed to
restore the habitability of Rongelap Island''. This report
would serve to establish the scientific basis for the U.S., in
cooperation with the national government of the Republic of the
Marshall Islands and the Rongelap Atoll Local Government, to
take ``such steps (if any) as are necessary to restore the
habitability of Rongelap and return the Rongelap people to
their homeland.''
In accordance with Section 103(i) of Public Law 99-239 and
Section 5(5)(8) of Marshall Islands Nitijela Resolution No. 62
(N.D. 2), independent scientific studies of the habitability of
Rongelap were conducted from 1992 to 1994. The studies
concluded that without specific measures to mitigate risk of
exposure to radiation Rongelap is not safe for human habitation
under standards established in 1992 by agreement between the
United States, the Marshall Islands and the Rongelap Atoll
Local Government. The report did include recommended measures
to mitigate risk to human health due to radiological
contamination at Rongelap so that persons returning to resettle
Rongelap could do so safely under the 1992 standards. These
measures included removal of soil at housing and community
building sites, potassium treatment of contaminated soil that
is not removed to block up-take of radiation in food chain, and
importation of food to prevent exposure to radiation through
reliance on local diet. The measures have been formally
accepted by the U.S. Department of Energy, the U.S. Department
of the Interior (DOI) and the National Academy of Science
Committee on Radiological Safety in the Marshall Islands.
Based on these studies, Congress provided funds in fiscal
year 1995 for Rongelap resettlement, including preparation of
cost estimates and a resettlement plan (H. Rep. 103-551).
Through DOI Rongelap contracted with the engineering firm that
did the original resettlement plan in 1987. Instead of
escalating the cost or even increasing estimates to keep up
with inflation, Rongelap and the engineers embraced the
discipline of current budgetary trends and modified the plan so
that cost estimates came down from the 1987 figure of $93.2
million to $85.8 million.
On March 9, 1995, the Rongelap Atoll Local Government
Council adopted Resolution 95-20, thereby formally adopting the
official resettlement plan prepared in accordance with Section
103(i) of Public Law 99-239 and House of Representatives Report
103-551.
In furtherance of the Rongelap resettlement process,
between 1992 and 1994, Congress made annual contributions
through the DOI budget (totaling $5.9 million) to the Rongelap
Resettlement Trust Fund established under Public Law 102-154.
In fiscal year 1995, Congress contributed and additional $5
million tot he resettlement trust fund through the budget of
the Department of Defense. Total U.S. contributions to the
trust fund are $10.9 million.
The official resettlement plan for Rongelap will require
$85 million for full implementation. Resettlement will not be
possible unless the U.S. makes a significant contribution to
the resettlement trust fund so that a full resettlement program
can be financed over a period of years. The engineering firm
which prepared the Rongelap resettlement plan worked for the
Atomic Energy Commission during the testing program, and has
managed the logistics for Bikini resettlement. Based on that
experience, the engineering experts estimate that Rongelap will
need a minimum of $60 million in the trust fund to commence the
resettlement program. Since certain infrastructure projects
would be required first, in addition to soil removal and
potassium treatment of remaining soil, the Rongelap
resettlement trust will have to be managed quite carefully to
achieve resettlement working with an amount in the trust fund
that is less than the full cost.
It is the desire and the intention of the United States
Government, the Government of the Republic of the Marshall
Islands and the Rongelap Atoll Local Goverment to provide a
mechanism for the implementation of the Rongelap resettlement
plan, and to bring about resettlement of the people of Rongelap
in the Republic of the Marshall Islands consistent with the
wishes of the community and its members. Subject to the terms
of a Rongelap Resettlement Trust Fund Agreement between the
United States, the Republic of the Marshall Islands and the
Rongelap Atoll Local Government, it is appropriate at this time
to enable the local government to carry out an island
rehabilitation and population resettlement program for Rongelap
and bring to completion the U.S. commitment to resettlement as
set forth in Public Law 99-239.

American Samoa

American Samoa is an unorganized, unincorporated possession
of the United States. Congress has plenary authority over all
possessions pursuant to the ``territories clause'' of the U.S.
Constitution [Art. 4, Sec. 3]. This authority was delegated to
the President of the United States, who further delegated it to
the Secretary of the Navy, and in 1951, to the Secretary of the
Interior.
The main islands of American Samoa were ceded to the United
States by two deeds of cession in 1900 and 1904. These deeds of
cession were ratified by Congress in 1929. To this day,
pursuant to a 1929 law (48 U.S.C. 1661) ``all civil, judicial,
and military powers'' are vested in the President of the United
States. The only reservation of this power granted by Congress
to the President is that in 1983 congress prohibited any
changes to the Constitution of American Samoa without an act of
Congress.
American Samoa's society reflects both traditional values
and Western influences. The traditional Samoan social structure
is built around extended families, or aiga. Family members
acknowledge allegiance to the island leadership hierarchy
comprised of family leaders, or matai. Matai are responsible
for the welfare of their respective aiga and play a central
role in protecting and allocating family lands.
American Samoa's government is a constitutional democracy
with executive, legislative and judicial branches. The
executive branch consists of over 20 offices and departments
providing services such as public safety, public works,
education and health. The executive branch is headed by a
governor popular elected to a four-year term. The legislature,
or Fono, is comprised of 18 senators, 20 representatives, and
one delegate. Senators are chosen by 12 local councils in
accordance with Samoan custom (not by popular vote) and serve
four-year terms. Representatives are elected by popular vote to
represent 17 established districts and serve two-year terms. A
non-voting delegate is elected to represent the people of the
former Tokelau Atoll (initially called La Isla de le Gente
Hermosa, by the Spanish explorer Pedro de Quiros, or Olohena in
Tokelauan or Olosega Mamao in Samoan).
There never has been a specific authorization for meeting
the needs of the residents of American Samoa other than a 1929
Joint Resolution of congress which accepted, ratified, and
confirmed the cessions of the islands now known as American
Samoa. The result of this relatively informal structure is that
the Government of American Samoa has been funded on a yearly
basis from discretionary funds, most recently within DOI.
The annual setting of a funding level of American Samoa has
made it difficult for the elected leaders of American Samoa to
plan systematic improvements. For example, to bring the
generation and distribution systems for electrical power up to
acceptable standards, the American Samoa Power Authority
adopted a five-year modernization plan. Because the authority
did not know from year to year if its modernization would
receive Federal assistance, actual purchases of equipment had
to be made one year at a time and discounts which would have
been available to a purchaser with a secure source of funding
were lost.
Congress has long recognized the benefits of multi-year
funding for its developing territories and has provided funding
similar in principle to the Northern Mariana Islands, the
Republic of the Marshall Islands, the Federated States of
Micronesia and the Republic of Palau.

commonwealth of the northern mariana islands (nmi)

The Northern Mariana Islands, previously part of the United
States-administered Trust Territory of the Pacific Islands and
now a U.S. territory, have received a generous stream of
special grants from the Federal Government since NMI chose to
come under U.S. sovereignty. The special grant authorization is
contained in the 1976 law approving the NMI Covenant which
provided the framework for the current Federal-territorial
relationship. It appears the grants have produced the intended
results as the Marianas now enjoy one of the highest standards
of living in the Pacific.
NMI Governor Froilan Tenorio testified before the
Subcommittee on Native American and Insular Affairs on January
31, 1995, that NMI no longer needs the funds and asked Congress
to eliminate the special annual grant. The Governor stated:

I strongly think the time must come to end the annual
Federal payment to the Northern Marian Islands. The
Federal Government is not helping us by giving us this
money. . . . In fact, Federal subsidies do us more harm
than good because they perpetuate our dependence on the
Federal Government and they come with too many Federal
strings attached.

NMI still has yet to expend over $80 million in accumulated
special annual grant funds from current and prior years.

office of territorial and international affairs

Congressman Elton Gallegly introduced legislation in the
103rd Congress to end the administration of territories from
DOI. This would mirror an earlier precedent involving the
unincorporated territory of Puerto Rico. By an Executive
Memorandum issued by President John F. Kennedy in 1961, Puerto
Rico ceased to be administered by DOI, having achieved a
significant level of self-governance. Since that time, the
other territories of American Samoa, Guam, the Northern Mariana
Islands, and the Virgin Islands have also developed similar
levels local self-governance. Congressman Gallegly reintroduced
his measure in the 104th Congress (H.R. 1332).
In January 1995, the Clinton Administration finally agreed
to end the administration of territories by announcing the
closure of the Office of Territorial and International Affairs.
Although the action was claimed to be a major example of
reinventing government and cutting Federal costs, the
Administration's proposal would save only $1 million per year,
in stark contrast to the $120 million over seven years realized
by H.R. 1332.

Committee Action

H.R. 1332, the Rongelap Recovery and Self-Reliance Act, was
introduced on March 28, 1995, by Congressman Elton Gallegly and
Delegate Eni Faleomavaega. H.R. 1306, American Samoa Economic
Development Act, was introduced on March 23, 1995, by Delegate
Faleomavaega and Congressman Gallegly. Both bills were referred
to the Committee on Resources and within the Committee to the
Subcommittee on Native American and Insular Affairs. In
addition, Congressman Gallegly introduced H.R. 602, the Omnibus
Territories Act, on January 20, 1995. The bill contained
provisions terminating the DOI Office of Territorial and
International Affairs and the annual special grant to NMI. H.R.
602 was referred to the Committees on Resources, Economic and
Educational Opportunities, Judiciary, and Ways and Means.
Within the Committee on Resources, the bill was referred to the
Subcommittee on Native American and Insular Affairs.
On January 31, 1995, the Subcommittee on Native American
and Insular Affairs held a hearing on H.R. 602, which would,
among other things, end the position of the Assistant Secretary
of the Interior for Territorial and International Affairs and
certain technical assistance programs for the territories. The
Administration testified the Assistant Secretary position would
end and the Office of Territorial and International Affairs
would be substantially downsized as part of the President's
Reinventing Government initiative.
The Subcommittee on Native American and Insular Affairs
held a hearing on March 29, 1995, to discuss H.R. 1306 and H.R.
1332. Representatives of the Marshall Islands and the Rongelap
Community testified in support of the provisions regarding
Rongelap. The Administration testified in support of measures
for the rehabilitation and resettlement of Rongelap and
economic development of American Samoa. However, the
Administration (represented by DOI) was opposed to the
elimination of DOI's role as administrator of funding for
American Samoa, as provided by H.R. 1306.
On April 5, 1995, the Subcommittee met to mark up H.R.
1332. Congressman Gallegly offered an amendment in the nature
of a substitute which included four titles: Rongelap Recovery
and Community Self-Reliance Act from H.R. 1332, the American
Samoa Economic Development Act from H.R. 1306, Commonwealth of
the Northern Mariana Islands from H.R. 602, and the Territorial
Administrative Cessation Act from H.R. 602. The amendment was
adopted by roll call vote of 7-0 as follows:

subcommittee on native american and insular affairs

Date: April 5, 1995.
Bill Number: H.R. 1332.
Amendment or Matter voted on: Gallegly Amendment to H.R.
1332.

----------------------------------------------------------------------------------------------------------------
Yea Nea Present Yea Nea Present
----------------------------------------------------------------------------------------------------------------
Gallegly....................... X ........ ......... Faleomavaega..... X ........ .........
Young.......................... ........ ........ ......... Kildee........... X ........ .........
Gilcrest....................... ........ ........ ......... Williams......... ........ ........ .........
Jones.......................... X ........ ......... Johnson.......... X ........ .........
Hastings....................... X ........ ......... Romero-Barcello.. ........ ........ .........
Matcalf........................ ........ ........ ......... Underwood........ X ........ .........
Longley........................ ........ ........ .........
----------------------------------------------------------------------------------------------------------------

The bill as amended was then ordered favorably reported to
the Full Committee in the presence of a quorum.
On May 17, 1995, the Full Resources Committee met to
consider H.R. 1332. Congressman Gallegly offered an amendment
in the nature of a substitute to address concerns raised by the
Administration and others regarding the accountability of
American Samoa for Federal funds which would be appropriated
over a 10 year period. Title II, the American Samoa Economic
Development Act, was modified to strengthen accountability
standards and clarify mechanisms which will stop the flow of
funds if an audit discrepancy determined by the Inspector
General or General Accounting Office is not timely resolved.
Congressman George Miller offered an amendment to the Gallegly
amendment relating to the full faith and credit of the United
States and the funding provided to American Samoa. The Miller
amendment by defeated by voice vote. Delegate Underwood offered
and withdrew an amendment to the Gallegly amendment relating to
the cessation of Office of Territorial and Internal Affairs
multi-year projects. Delegate Underwood offered a second
amendment to the Gallegly amendment which restored annual
funding to NMI. The amendment failed by voice vote. Delegate
Faleomavaega offered an amendment to the Gallegly amendment.
The amendment clarified that the specific amounts of Federal
funds authorized to American Samoa during each year of the 10
year period of the Act shall not be released if the conditions
in the Act are not met. The Faleomavaega amendment passed by
voice vote. The Gallegly amendment in the nature of a
substitute, as amended, passed by voice vote. On May 24, 1995,
the bill as amended was ordered favorably reported to the House
of Representatives, in the presence of a quorum, by the
Committee on Resources.

SECTION-BY-SECTION ANALYSIS

Section 1. Short title; Table of contents

The short title of the bill is the ``Omnibus Insular Areas
Act of 1995''. This section also contains a table of contents.

title i--rongelap

Section 101. Short title

The short title of this title is the ``Rongelap Recovery
and Community Self-Reliance Act''.

Section 102. Policy regarding assistance for resettlement of people of
Rongelap

This section explains that the purpose of the bill is to
accomplish resettlement consistent with U.S. commitments and
provides that the extent of future funding for Rongelap
resettlement is solely within the discretion of Congress.

Section 103. Responsibilities Relating to Rongelap resettlement trust
fund

The section clarifies that the role of the Department of
Interior in transferring funds appropriated by Congress to the
Rongelap Resettlement Trust Fund is administrative in nature,
and involves policy or oversight of trust management and the
resettlement process only to the extent specifically required
under the applicable legal instruments establishing the
Rongelap Resettlement Trust Fund. Section 103 also provides for
audit of trust fund activities by the Comptroller General and
the Department of Interior Inspector General, and expressly
reserves Congressional authority of the trust fund.

Section 104. Trustee and other fund personnel

This section sets forth certain requirements and
qualifications for the trustee and those who might serve as
fund managers and investment advisers to the Rongelap Atoll
Local Government.

Section 105. Resettlement expenditures and activities

This section defines the scope of the trust and authorizes
the use of up to 50 percent of certain components of the trust
fund's annual earnings to meet basic human needs of the
community and administrative expenses arising from the
resettlement process. Annual earnings are defined in a way that
allows the funds to grow and protects the corpus from
inflation, even after the distribution authorized by this
section.
Section 105 also recognizes that some members of the
Rongelap community may not choose to return to reside
permanently at Rongelap even if measures to mitigate risk are
implemented, and authorizes appropriately limited resettlement
assistance to those who elect to resettle elsewhere in the
Marshall Islands. Such assistance is restricted to avoid
``double-dipping''.

Section 106. Transfer of unexpended and unobligated funds

Section 106 is a housekeeping measure which recognizes that
the Rongelap Resettlement Project which managed the scientific
studies required under Section 103(i) of Public Law 99-239 will
be entering a new phase now that the Scientific Management Team
is disbanding and the report on resettlement of Rongelap Island
is complete. All funding which has been made available for
scientific studies but not expended now properly should be
transferred to the Rongelap Atoll Local Government for use
consistent with the purpose for which such funds were
appropriated, including on-going scientific research and
radiological monitoring during resettlement.

title ii--american samoa

Section 201. Short title

This section sets forth the short title of the title as the
``American Samoa Economic Development Act of 1995''.

Section 202. Findings

Section 202 details Congressional findings which recite the
prior authorization for Federal assistance to American Samoa,
the difficulties in long-term planning if the next year's
funding is not known, and the benefits to be derived from a
multi-year source of funds.

Section 203. Authorization of funding

This section provides a ten-year authorization of $34.5
million per year for the territory. The funding would be
available for construction of capital assets, government
operations and reduction of government debt. Debt reduction
requires 100 percent matching by American Samoa. the funding
would not be released by the U.S. Treasury Department unless
the conditions of the bill are met.

Section 204. Establishment of trust

This section requires the Government of American Samoa to
place the Federal funds disbursed pursuant to this title in a
trust to be disbursed by a trustee. The trustee would be
appointed and removed pursuant to local law, with the
appointment subject to the concurrence of the U.S. Secretary of
the Interior. The trustee is required to submit an annual
report to Congress, DOI and the Government of American Samoa.
The requirement that the trustee be a financial institution
with over $1 billion in trust assets is intended to provide
considerable security of the trust assets yet not be a
requirement so burdensome as to eliminate competition. The
Committee has researched the asset requirement included in the
bill and believes it is a fair compromise between the two
competing interests.
While the Committee trusts the Government of American Samoa
to select a responsible trustee, concern was expressed that
there should be some Federal review of the process through
which the trustee is selected. It is felt that the concurrence
of the Secretary of the Interior will ensure any trustee
nominated by the Governor is responsible and meets the
requirements of the law. The Committee recognizes that the
Government of American Samoa may find it beneficial to
establish a selection process, and set forth operating
procedures pursuant to local law. Section 204 provides for that
possibility.
Paragraph (b)(4) ensures that the trustee will comply with
both laws of the state in which its principal office is located
as well as all applicable laws in American Samoa.
Paragraph (b)(5) is intended to hold the trustee
responsible for the disbursement of funds inconsistent with the
terms of this bill. If it is determined that an illegal
disbursement was made, the full amount of the disbursement must
be paid to the U.S. Treasury. This serves to make the U.S.
taxpayers whole again, and serves as a prospective disincentive
to the trustee, as the amount of the penalty could exceed the
trustee's fees for any given year. The good faith exception to
the general rule of liability on the part of the trustee is
intended to protect the trustee from liability based on actions
required of the trustee by others.
The requirement in subsection (c) that the trust funds be
deposited in an account or accounts in accordance with
regulations of the Department of the Treasury is intended to
ensure the Federal Government does not transmit funds to the
Government of American Samoa until they are needed. Concern has
been expressed that without this provision, the Government of
American Samoa would be entitled all funds for construction
projects at the beginning of each fiscal year. Furthermore,
because of the annual deficits under which the Federal
Government is currently operating and the requirement the funds
be placed in accounts or bonds, notes or other redeemable
instruments backed by the full faith and credit of the United
States, the Federal government could, in effect, be providing
tens of millions of dollars to American Samoa, and paying
interest on the money as well. This provision is intended to
remove that possibility.
The requirement in subsection (c) that the Federal funds be
deposited in an account or accounts of a financial institution
which is insured by the Federal Deposit Insurance Corporation
is intended to take advantage of other Federal laws which
ensure the soundness of commercial depository institutions.
The requirement contained in subsection (d) that the
trustee submit an annual report within 90 days of the end of
each fiscal year, will assist American Samoa in preparing for
its annual audit by an independent auditor, and will give
Congress and the executive branch a ``quick look'' at how the
Federal funds were disbursed during the prior fiscal year.

Section 205. Uses of trust funds

This section specifies the purposes for which trust funds
could be used and the requirements to receive funds. The
primary requirements for American Samoa to receive funds are
that American Samoa must develop a master plan of capital
needs, provide a maintenance plan for each project constructed,
and establish semiautonomous government agencies before it can
receive construction funds. At least $3 million per year of the
construction money must be used for youth facilities.
The Committee notes that the Government of American Samoa
has, with the assistance of DOI and the Army Corps of
Engineers, developed an initial master plan of capital needs.
The Committee understands that American Samoa may wish to
further refine this plan as time goes on, but for purposes of
this bill, the master plan as it exists, once passed by the
local legislature, will meet the requirements of this
legislation. No new master plan is required, and no Federal
approval is required.
The requirement for the existence of semiautonomous
agencies is intended to make the Government of American Samoa
more efficient, and to assist the government in identifying
areas of its operations which can and should be self-
supporting. The success of the American Samoa Power Authority
(ASPA) is noted and, in fact, ASPA was used as a model in
setting forth the minimal requirements of the semiautonomous
agencies required under this bill.
The Committee notes that the Government of American Samoa
is not meeting the needs of the younger residents of the
territory. As the education and development of the youth in the
territory are considered fundamental requirements of operating
a local government, the Committee has included a requirement
that at least $3 million per year be used for the construction
or repair of capital assets primarily available for the school-
age residents of American Samoa. For fiscal year 1996,
illustrative projects are provided, with the expectation that
beginning with fiscal year 1997 the needs of territory's youth,
including those attending the American Samoa Community College,
will be included in the master plan of capital needs.
The Committee has been concerned that in American Samoa, as
well as in the other insular areas, Federal funds are used to
construct capital assets, but that these capital assets are not
available to the residents of the territories for as long as
they should be because the assets are not properly maintained.
In years past, the Committee has supported the Operations,
Maintenance and Improvement Program operated by the Office of
Territories and International Affairs as a method of
demonstrating to the territories the benefit of regular
preventative maintenance programs. As Congress continues to
tighten its belt in an effort to balance the Federal budget,
the Committee believes this demonstration at Federal expense
has served its purpose and it is now time for the territories
to maintain the assets provided by U.S. taxpayers. To this end,
this bill requires American Samoa to develop a maintenance plan
for each capital asset that is constructed with funds
appropriated pursuant to this authorization. Federal funds
identified for the construction of capital assets may be used
to initially fund this plan, but once the asset is placed in
service and the initial funding is depleted, local funds must
be used to repair and maintain it.
The Committee notes that while preliminary reports for
fiscal year 1995 indicate that the executive branch of the
Government of American Samoa is operating at or under budget,
the Committee is concerned that prior years have not always
been managed in such a prudent fashion, the result of which is
a considerable debt owed by American Samoa to Federal agencies,
private creditors and other local government funds. While there
is considerable reluctance to assist American Samoa by
``bailing it out'' from a hole it dug for itself through
inadequate management and financial controls, the Committee
acknowledges American Samoa will find it very difficult to pay
off its debt without some assistance. For this reason, and with
the expectation that American Samoa has righted itself, the
Committee has proposed a mechanism by which the Federal
Government will, in effect, pay for one-half of this debt. The
matching local funds need not be provided all at once, but
rather, as American Samoa pays off old debt with funding from
non-federal sources, it may receive a partial reimbursement
after each payment is made.
The uses of funds prohibited in paragraph (c) are intended
to ensure the Federal funds are not lost through misuse or
diverted to other accounts and purposes.

Section 206. Disbursement of trust funds

Section 206 detail show trust funds will be disbursed:
operations funding will be disbursed on a monthly basis,
construction funds on proof that the work has been completed.
The purpose of this section is to provide for the orderly
release of funds by the Federal Government. Section 207 sets
forth certain financial requirements which must be met if
American Samoa is to continue receiving Federal funding.
Section 206 provides that even if these conditions are not met,
the Government of American Samoa may receive one disbursement
not to exceed ten percent of the amount appropriated for that
year for the operations of American Samoa if the territory
experiences an extreme or territorial emergency deemed
unforeseeable by the trustee.
Section 206 also establishes a procedure by which the
funding for the construction of capital assets may be paid to
the Government of American Samoa, and semiautonomous agencies
of the Government of American Samoa, or a bona fide contractor
of the Government, depending on the circumstances of each
contractual commitment.
Paragraph (c) of Section 206 sets forth the procedure to be
used for assisting American Samoa in paying down its unbudgeted
debt incurred in fiscal years prior to 1995. Upon presentation
to the trustee of proof that the government of American Samoa
has made a payment from non-federal sources on debt incurred
prior to fiscal year 1995, the trustee shall pay to American
Samoa one-half of the amount paid by it. The total Federal
expenditure in any fiscal year shall not exceed $3 million. It
is intended that these funds shall be made available in fiscal
years 1996 through 2000, but that if any of the funds are not
used in the year they become available, they shall remain
available until expended, or until there is no additional
qualifying debt to be paid, in which case the funds shall
remain in the U.S. Treasury.

Section 207. Audits

Section 207 states the requirement that the Single Audit
Act applies to these funds and requires that the audit be
completed within 180 days from the end of each fiscal year. If
American Samoa cannot obtain an audit report with an opinion
within the allotted time, no additional Federal funds for the
operation of the Government of American Samoa or unobligated
construction money may be disbursed until a satisfactory audit
report is submitted.
The accuracy of the financial accounting required by the
bill increases after five years. For the first five fiscal
years (1996-2000), the financial audit report shall contain an
auditor's opinion, but the opinion may be qualified. For fiscal
years 2001-2005, the requirement is that the opinion of the
independent auditor must be unqualified, or what is known as a
``clean opinion''. Reports on which an independent auditor does
not express an opinion or on which the opinion expressed is
adverse do not meet the requirements of this legislation for
any of the ten years. Audit reports are submitted to Congress
and DOI.
The recitation of the Single Audit Act and Code of Federal
Regulations is not intended to place any new audit requirements
on American Samoa. The intent is simply to affirm that the
requirements of the cited Federal laws and regulations apply to
funds appropriated pursuant to this bill.
Paragraph (c) of Section 207 identifies the DOI Inspector
General as the one who shall make the notification to the
trustee not to release additional Federal funds if the audit
requirements contained in the bill are not met.

Section 208. Audits by the United States

This section restates the authority of the Comptroller
General and the DOI Inspector General to audit all funds of the
Government of American Samoa, and other Federal agencies to
audit the use of their funds. These are not new requirements.
Federal auditors are given the authority to set time limits as
to when the discrepancies should be corrected. The trustee must
withhold future operations funding and unobligated construction
funding if a major discrepancy is not corrected in the time
prescribed by the audit authority. Each audit authority may
amend the time it has prescribed for the correction of a major
deficiency. The Committee expects that unless an administrative
error was made, any amendments to time limits would be to
extend the time limit rather than to shorten it. The trustee is
held accountable for funds it disburses for purposes outside
the scope of the bill.
The Committee is aware of the repeated statements in audit
reports, and Federal reviews of the finances of the American
Samoa Government, that part of the internal problem of
financial management of American Samoa is that appropriate
corrective action has not always been taken. The Committee is
convinced that when given the responsibility to manage its own
affairs, when coupled with advance notification that government
leaders will be held accountable for their actions, the
Government of American Samoa will properly manage its financial
affairs. Section 208 is intended to give American Samoa that
opportunity.

Section 209. Settlement of disputes

Section 209 gives the High Court of American Samoa
jurisdiction to resolve disputes which arise pursuant to this
title. This provision was included to ensure this bill would
not be construed to exclude the High Court of American Samoa as
a venue available for resolution of disputes which arise under
the provisions of this bill. This bill is not intended to
exclude the parties to any disputes which arise under the
provisions of this bill from settling the disputes through non-
judicial means available under the applicable Federal, state or
territorial laws, nor is Section 209 intended to exclude as
venues Federal courts which have jurisdiction under other
Federal law and the U.S. Constitution.

Section 210. Criminal violations

This section restates existing authority that violations of
Federal or local criminal law concerning funds appropriated
pursuant to this title may be brought in local or Federal
court, as appropriate.

Section 211. Definitions

This section defines several terms used in Title II.

title iii--commonwealth of the northern mariana islands

Section 301. Termination of annual direct grant assistance

The annual special grant assistance to the Northern Mariana
Islands is terminated as of September 30, 1995. Any amounts
previously appropriated but not obligated as of the date of
enactment may not be obligated.

title iv--territorial administrative cessation act

Section 401. Short title

The short title of this part is the ``Territorial
Administration Cessation Act.''

Section 402. Congressional findings

The Congressional findings highlight the recent end of the
United Nations Trust Territory of the Pacific Islands and
corresponding trusteeship responsibilities of the United
States. In addition, the U.S. territories have developed
progressively increased self-governance during the past five
decades, and Federal-territorial relations can be enhanced and
fiscal conditions improved by the elimination of unnecessary
Federal bureaucracy.

Section 403. Elimination of office of territorial and international
affairs

The Office of Territorial and International Affairs of the
Department of the Interior, established by Secretarial Order in
1980, is eliminated. The position of Assistant Secretary for
the Office is terminated by reducing the authorized number of
assistant secretaries of the Interior from six to five. The
provisions would take effective the first day of the first
fiscal year following the date of enactment.

Section 404. Certain activities not funded

No further amounts may be expended for certain assistance
programs for territories administered by Interior: technical
and maintenance assistance, disaster fund, and insular
management controls.

Committee Oversight Fundings and Recommendations

With respect to the requirements of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives, and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee on Resources' oversight findings and
recommendations are reflected in the body of this report.

Inflationary Impact Statement

Pursuant to clause 2(l)(4) of rule XI of the Rules of the
House of Representatives, the Committee estimates that the
enactment of H.R. 1332 will have no significant inflationary
impact on prices and costs in the operation of the national
economy.

Cost of the Legislation

Clause 7(a) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs which would be incurred in carrying out
H.R. 1332. However, clause 7(d) of that Rule provides that this
requirement does not apply when the Committee has included in
its report a timely submitted cost estimate of the ill prepared
by the Director of the Congressional Budget Office under
Section 403 of the Congressional Budget Act of 1974.

Compliance With House Rule XI

1. With respect to the requirement of clause 2(l)(3)(B) of
rule XI of the Rules of the House of Representatives and
Section 308(a) of the Congressional Budget Act of 1974, H.R.
1332 does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. The bill does increase mandatory spending.
2. With respect to the requirement of clause 2(l)(3)(D) of
rule XI of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 1332.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
Section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R.
1332 from the Director of the Congressional Budget Office.

Congressional Budget Office Cost Estimate

U.S. Congress,
Congressional Budget Office,
Washington, DC, June 16, 1995.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1332, the Omnibus
Insular Areas Act of 1995. Because the bill would affect direct
spending, pay-as-you-go procedures would apply.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).

congressional budget office cost estimate

----------------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999 2000
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATIONS ACTION
Spending Under Current Law and Under H.R. 1332
\1\
Budget Authority.......................... 48 ......... ......... ......... ......... .........
Estimated Outlays......................... 49 19 ......... ......... ......... .........

MANDATORY SPENDING
Spending Under Current Law:
Budget Authority.......................... 28 28 28 28 28 28
Estimated Outlays......................... 5 17 29 41 28 28
Proposed Changes:
Budget Authority.......................... ......... 7 7 7 7 7
Estimated Outlays......................... ......... 18 24 19 13 4
Spending Under H.R. 1332:
Budget Authority.......................... 28 35 35 35 35 35
Estimated Outlays......................... 5 35 53 60 41 32
----------------------------------------------------------------------------------------------------------------
\1\ The 1995 budget authority is the amount appropriated for that year. The bill would eliminate the OTIA and
change the funding for American Samoa from discretionary spending to mandatory spending. The proposed changes
under the mandatory spending heading reflect this category change.

The costs of this bill fall within budget function 800.
6. Basis of Estimate: Authorizations of Appropriations. For
fiscal year 1995, current law provides about $19 million for
the OTIA and certain small assistance programs managed by that
office and about $29 million for American Samoa (which is also
administered by OTIA). H.R. 1332 would eliminate the OTIA and
its related programs and change the funding for American Samoa
from discretionary to mandatory. Current law provides no
funding for these programs for fiscal years after 1995, and
this bill would not authorize any appropriations for them.
There could be some increased costs to the Department of
the Interior to assume the responsibilities of OTIA in
administering the payment to American Samoa. However, CBO
estimates that these costs would not be significant.
Direct Spending: Current law provides a guaranteed annual
grant of about $28 million to the Northern Mariana Islands.
Beginning in fiscal year 1996 H.R. 1332 would terminate this
grant and would guarantee an annual payment of $34.5 million to
American Samoa. Estimated outlays for these grants are based on
the projected uses for the funds, such as for building
construction and operations, and the anticipated rates of
spending for these uses. CBO expects that funds for American
Samoa would spend at a faster rate than those for the Northern
Marianas, leading to higher outlays than under current law. In
addition to the new direct spending for American Samoa,
spending for the Northern Marianas would continue through 1999
from budget authority provided in 1995 and prior years.
7. Pay-as-you-go considerations: Section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts through 1998. Because this bill would
affect direct spending, pay-as-you-go procedures would apply.
These effects are summarized in the following table.

------------------------------------------------------------------------
1995 1996 1997 1998
------------------------------------------------------------------------
Change in outlays........... 0 18 24 19
Change in receipts.......... (\1\) (\1\) (\1\) (\1\)
------------------------------------------------------------------------
\1\ Not applicable.

8. Estimated cost to State and local governments: None.
9. Estimate comparison: None.
10. Previous CBO estimate: None.
11. Estimate prepared by: Mark Grabowicz.
12. Estimate approved by: Robert A. Sunshine, for Paul N.
Van de Water, Assistant Director for Budget Analysis.

U.S. Congress,
Congressional Budget Office,
Washington, DC., February 29, 1996.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed intergovernmental mandates cost estimate
for H.R. 1332, the Omnibus Insular Areas Act of 1995. CBO
provided a federal cost estimate for this bill on June 16,
1995.
The bill would impose an intergovernmental mandate on the
government of American Samoa, but the direct costs of complying
with this mandate would not exceed the $50 million threshold
established in Public Law 104-4. The bill would impose no new
private sector mandates.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
June E. O'Neill, Director.

congressional budget office estimated cost of intergovernmental
mandates

1. Bill number: H.R. 1332.
2. Bill title: Omnibus Insular Areas Act of 1995.
3. Bill status: As ordered reported by the House Committee
on Resources on May 24, 1995.
4. Bill purpose: H.R. 1332 contains the following four
titles:
Title I, the Rongelap Recovery and Community Self-Reliance
Act, would make several administrative changes to the Rongelap
Resettlement Trust Fund.
Title II would provide spending authority of $34.5 million
for each of the fiscal years 1996 through 2005 for federal
payments to American Samoa and would place conditions on the
use of those funds.
Title III would terminate the guaranteed annual payments
made by the United States to the Northern Mariana Islands.
Title IV, the Territorial Administrative Cessation Act,
would eliminate the Office of Territorial and International
Affairs (OTIA) of the Department of the Interior, including
certain assistance programs managed by that office.
5. Intergovernmental mandates contained in bill: Title II
of H.R. 1332 would require the government of American Samoa to
obtain a comprehensive financial audit, beginning with fiscal
year 1996. The bill would further require the American Samoan
government to submit audit reports along with plans to resolve
any deficiencies to various Congressional committees and
federal agencies. These requirements would be mandated as
defined in Public Law 104-4. That law defines state governments
to include territories of the United States, including American
Samoa and the Northern Mariana Islands.
6. Estimated direct costs to State, local, and tribal
governments: (a) Is the $50 Million Threshold Exceeded? No. (b)
Total Direct Costs of Mandates: CBO estimates that this mandate
would impose no significant direct costs on the government of
American Samoa. (c) Estimate of Necessary Budget Authority: Not
applicable.
7. Basis of estimate: This estimate is based on information
provided by officials of the U.S. Department of the Interior.
CBO estimates that American Samoa will spend between
$500,000 and $750,000 per year to obtain the audits required by
this bill, but we also expect that they would incur these costs
in the absence of this legislation. American Samoa is required
to obtain a comprehensive financial audit under current law,
and it is currently taking steps to comply with that
requirement.
8. Appropriation or other Federal financial assistance
provided in bill to cover mandate costs: While this bill
authorizes payments from the federal government to American
Samoa, it would specifically require that the audit be obtained
at the territory's expense.
9. Other impacts on State, local, and tribal governments:
H.R. 1332 would authorize guaranteed annual payments to
American Samoa of $34.5 million over fiscal years 1996 through
2005. The bill would also terminate existing authority for
guaranteed annual payments of $28 million to the Northern
Mariana Islands.
10. Previous CBO estimate: None.
11. Estimate prepared by: Marjorie Miller.
12. Estimate approved by: Robert A. Sunshine, for Paul N.
Van de Water, Assistant Director for Budget Analysis.

Compliance With Public Law 104-4

1. The Congressional Budget Office (CBO) has identified in
H.R. 1332 an intergovernmental mandate on the Government of
American Samoa by requiring a comprehensive financial audit
beginning in Fiscal Year 1997. The Committee on Resources
disagrees with this assessment because the bill merely requires
compliance with existing law.
2. According to CBO, the cost of the audit will be between
$500,000 and $750,000 per year, although CBO also recognizes
that ``American Samoa is required to obtain a comprehensive
financial audit under current law and is currently taking steps
to comply with that requirement.'' The benefit of the audit
will be to ensure financial accountability for the $34,500,000
in U.S. funds appropriated for American Samoa for each of
Fiscal Years 1996 through 2005.
3. The mandate affects only the public sector (the
Government of American Samoa).
4. Paying for the mandate will not affect the competitive
balance between the Government of American Samoa and the
private sector.
5. Section 203 of H.R. 1332 directs that $34,500,000 be
made available for each of Fiscal Years 1996 through 2005 for
the Government of American Samoa. Funds under Section 203 may
be used to fund the mandated audit, which is estimated to cost
the Government of American Samoa between $500,000 and $750,000
per year.
6. The Committee intends that the audit mandate for
American Samoa be entirely funded through appropriated funds.
7. If the audit mandate is funded, there is no need for a
mechanism used to allocate funding among jurisdictions since
funds will be provided directly to the Government of American
Samoa and the Government will be responsible for conducting the
audit.
8. Current appropriations to the Department of the Interior
for the Government of American Samoa exist to cover the direct
costs of the mandated audit.
9. H.R. 1332 is not intended to preempt any State, local,
tribal law, or American Samoan law.

Departmental Reports

The Committee has received no departmental reports on H.R.
1332.

Changes in Existing Law Made by the Bill, as Reported

In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):

ACT OF MARCH 24, 1976

JOINT RESOLUTION To approve the ``Covenant To Establish a Commonwealth
of the Northern Mariana Islands in Political Union with the United
States of America'', and for other purposes

* * * * * * *
[Sec. 3. Pursuant to section 701 of the foregoing Covenant,
enactment of this section shall constitute a commitment and
pledge of the full faith and credit of the United States for
the payment of $228 million at guaranteed annual amounts of
direct grant assistance for the Government of the Northern
Mariana Islands for an additional period of seven fiscal years
after the expiration of the initial seven-year period specified
in section 702 of said Covenant, which assistance shall be
provided according to the schedule of payments contained in the
Agreement of the Special Representatives on Future United
States Financial Assistance for the Government of the Northern
Mariana Islands, executed July 10, 1985, between the special
representative of the President of the United States and the
special representatives of the Governor of the Northern Mariana
Islands. The islands of Rota and Tinian shall each receive no
less than a \1/8\ share and the island of Saipan shall receive
no less than a \1/4\ share of annualized capital improvement
project funds, which shall be no less than 80 per centum of the
capital development funds identified in the schedule of
payments in paragraph 2 of part II of the Agreement of the
Special Representatives. Funds shall be granted according to
such regulations as are applicable to such grants.
[Sec. 4. (a) Section 704(c) of the foregoing Covenant shall
not apply to the Federal financial assistance which is provided
to the Government of the Northern Mariana Islands pursuant to
section 3 of this Act.
[(b) Upon the expiration of the period of Federal financial
assistance which is provided to the Government of the Northern
Mariana Islands pursuant to section 3 of this Act, payments of
direct grant assistance shall continue at the annual level
provided for the last fiscal year of the additional period of
seven fiscal years until Congress otherwise provides by law.]
Sec. 5. Should the Secretary of the Interior believe that
the performance standards of the [agreement identified in
section 3 of this Act] Agreement of the Special Representatives
on Future United States Financial Assistance for the Government
of the Northern Mariana Islands, executed July 10, 1985,
between the special representative of the President of the
United States and the special representatives of the Governor
of the Northern Mariana Islands are not being met, he shall
notify the Government of the Northern Mariana Islands in
writing with the intent to resolve such issue in a mutually
agreeable and expeditious manner and notify the Committee on
[Interior and Insular Affairs] Resources of the House of
Representatives and the Committee on Energy and Natural
Resources of the Senate. Should the issue not be resolved
within thirty days after the notification is received by the
Government of the Northern Mariana Islands, the Secretary of
the Interior may request authority from Congress to withhold
payment of an appropriate amount of the operations funds
identified in the schedule of payments in paragraph 2 of part
II of the Agreement of the Special Representatives for a period
of less than one year but no funds shall be withheld except by
Act of Congress:
* * * * * * *
----------

SECTION 5315 OF TITLE 5, UNITED STATES CODE

* * * * * * *

Sec. 5315. Positions at level IV

Level IV of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Deputy Administrator of General Services.
Associate Administrator of the National Aeronautics
and Space Administration.
Assistnt Administrators, Agency for International
Development (6).
* * * * * * *
Assistant Secretaries of the Interior [(6)] (5).
* * * * * * *