[Senate Report 105-201]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 396
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-201
_______________________________________________________________________


 
          NORTHERN MARIANA ISLANDS COVENANT IMPLEMENTATION ACT

                                _______
                                

                  June 5, 1998.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1275]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1275) to implement further the Act 
(Public Law 94-241) approving the Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Political Union 
with the United States of America, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends 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.

    This Act may be cited as the ``Northern Mariana Islands Covenant 
Implementation Act''.

SEC. 2. IMMIGRATION REFORM FOR THE COMMONWEALTH OF THE NORTHERN MARIANA 
                    ISLANDS.

    (a) Amendments to Act Approving the Covenant To Establish a 
Commonwealth of the Northern Mariana Islands in Political Union With 
the United States of America.--Public Law 94-241 (90 Stat. 263), as 
amended, is further amended by adding at the end thereof the following:
                           transition program
    ``Sec. 6. (a) Attorney General Findings.--
          ``(1) Minimum standards.--Within ninety days after the date 
        of enactment of the Northern Mariana Islands Covenant 
        Implementation Act, the Attorney General shall determine, and 
        publish by notice in the Federal Register, minimum standards 
        that the Attorney General deems necessary to ensure an 
        effective system of immigration control for the Commonwealth of 
        the Northern Mariana Islands. The determination of such minimum 
        standards shall rest within the sole discretion of the Attorney 
        General, shall not be subject to the rulemaking requirements of 
        the Administrative Procedure Act (5 U.S.C. 533-557), and may be 
        reviewed solely pursuant to paragraph (3) of this subsection.
          ``(2) Findings.--One year after the date of enactment of the 
        Northern Mariana Islands Covenant Implementation Act, or, if 
        applicable, ninety days after the issuance of a final judicial 
        determination pursuant to paragraph (3), whichever is later, 
        the Attorney General, after consultation with the Government of 
        the Commonwealth of the Northern Mariana Islands, shall make 
        the following findings:
                  ``(A) whether the Government of the Commonwealth of 
                Northern Mariana Islands possesses the institutional 
                capability to administer an effective system of 
                immigration control, consistent with the minimum 
                standards established under paragraph (1), and
                  ``(B) if the Attorney General determines that the 
                Government of the Commonwealth of the Northern Marianas 
                possesses such institutional capability, whether the 
                Government of the Commonwealth of the Northern Mariana 
                Islands has demonstrated a genuine commitment to 
                enforce an effective system of immigration control 
                consistent with the minimum standards established under 
                paragraph (1). The findings by the Attorney General 
                regarding the institutional capability of the 
                Government of the Commonwealth of the Northern Mariana 
                Islands, and if applicable, the genuine commitment of 
                the Government of the Commonwealth of the Northern 
                Mariana Islands to enforce an effective system of 
                immigration control, shall be published in the Federal 
                Register in a timely manner.
          ``(3) Accelerated judicial review of minimum standards.--
        Except for review in the Supreme Court of the United States, 
        the United States Court of Appeals for the District of Columbia 
        Circuit shall have original and exclusive jurisdiction over any 
        complaint of the Government of the Commonwealth of the Northern 
        Mariana Islands seeking review of the minimum standards 
        established under paragraph (1). No other person or entity 
        shall have the right to seek review of these minimum standards. 
        For purposes of this paragraph, a petition for review will be 
        deemed to have been timely filed only if it is made within 
        ninety days after publication of the standards in the Federal 
        Register. It shall be the duty of the reviewing court to 
        advance on the docket and to expedite to the greatest possible 
        extent the disposition of any matter brought under this 
        paragraph. In the event that there is issued a final judicial 
        determination invalidating the minimum standards, the Attorney 
        General shall have published in the Federal Register new 
        minimum standards within ninety days of such final judicial 
        determination. Such new minimum standards shall be reviewable 
        solely pursuant to this paragraph.
          ``(4) Accelerated judicial review of the findings of the 
        attorney general.--The findings of the Attorney General 
        described in subparagraphs (A) and (B) of paragraph (2) shall 
        be deemed to be final upon publication in the Federal 
Register,unless the Government of the Commonwealth of the Northern 
Mariana Islands seeks review of these findings by filing a timely 
petition for review, pursuant to this paragraph, with the United States 
Court of Appeals for the District of Columbia Circuit. No other person 
or entity shall have the right to seek review of the findings of the 
Attorney General. For purposes of this paragraph, a petition for a 
review will be deemed to have been timely filed only if it is made 
within ninety days of publication of the findings of the Attorney 
General in the Federal Register. Except for review in the Supreme Court 
of the United States, the United States Court of Appeals for the 
District of Columbia Circuit shall have original and exclusive 
jurisdiction over any review of the findings of the Attorney General. 
It shall be the duty of the reviewing court to advance on the docket 
and to expedite to the greatest possible extent the disposition of any 
matter brought under this paragraph. In the event that there is issued 
a final judicial determination upholding the findings of the Attorney 
General, then the provisions of subsections (b) through (j) shall take 
effect 180 days after the date of such a final judicial determination. 
In the event that there is a final judicial determination invalidating 
the findings of the Attorney General, subject to subparagraph (6), then 
the provisions of subsections (b) through (j) shall not take effect. 
Nothing in this paragraph shall limit the authority of the Attorney 
General to make new findings pursuant to paragraph (2)(B) at any time 
after such a final judicial determination.
          ``(5) Effective date.--Subject to paragraphs (4) and (6), if 
        the Attorney General finds either that the Commonwealth of the 
        Northern Mariana Islands does not have the institutional 
        capability to meet the minimum standards described in paragraph 
        (2)(A) or has not demonstrated a genuine commitment to enforce 
        an effective system of immigration control consistent with the 
        minimum standards required in paragraph (2)(B), then 
        subsections (b) through (j) shall take effect 180 days after 
        the finding is published. If the Attorney General determines 
        that the Government of the Commonwealth of Northern Mariana 
        Islands has such institutional capability and genuine 
        commitment, subject to paragraph (6), then the provisions of 
        subsections (b) through (j) shall not take effect.
          ``(6) Subsequent findings.--If the Attorney General finds 
        that the Government of the Commonwealth of the Northern Mariana 
        Islands meets the requirements of subparagraphs (A) and (B) of 
        paragraph (2), the Attorney General, every three years 
        thereafter, shall make findings with respect to whether the 
        Government of the Commonwealth of Northern Mariana Islands 
        continues to meet the requirements of such subparagraphs. The 
        subsequent findings of the Attorney General shall be reviewable 
        solely pursuant to paragraph (4).
    ``(b) Application of the Immigration and Nationality Act and 
Establishment of a Transition Program.--Except as provided in 
subsection (c), the provisions of the Immigration and Nationality Act 
(8 U.S.C. 1101) shall apply to the Commonwealth of the Northern Mariana 
Islands: Provided That there shall be a transition period not to exceed 
ten years following the effective date of the provisions of subsections 
(b) through (j) of this section (except for subsection (e)(2)(I), if 
needed), during which the Attorney General, in consultation with the 
Secretaries of State, Labor, and the Interior, shall establish, 
administer, and enforce a transition program for immigration to the 
Commonwealth of the Northern Mariana Islands (the ``transition 
program''). The transition program established pursuant to this section 
shall provide for the issuance of nonimmigrant temporary alien worker 
visas pursuant to subsection (d), and, under the circumstances set 
forth in subsection (e), for family-sponsored and employment-based 
immigrant visas. The transition program shall be implemented pursuant 
to regulations to be promulgated as appropriate by each agency having 
responsibilities under the transition program.
    ``(c) Exemption From Numerical Limitations for H-2B Temporary 
Workers.--An alien, if otherwise qualified, may seek admission to the 
Commonwealth of the Northern Mariana Islands as a temporary worker 
under section 101(a)(15)(H)(ii)(B) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(15)(H)(ii)(B)) without regard to the numerical 
limitations set forth in section 214(g) of such Act (8 U.S.C. 1184(g)).
    ``(d) Temporary Alien Workers.--The transition program shall 
conform to the following requirements with respect to temporary alien 
workers who would otherwise not be eligible for nonimmigrant 
classification under the Immigration and Nationality Act:
          ``(1) Aliens admitted under this subsection shall have the 
        same privileges as nonimmigrants under section 101(a)(15) of 
        the Immigration and Nationality Act (8 U.S.C. 1258), including 
        the ability to apply, if otherwise eligible, for a change of 
        nonimmigrant status under section 248 of such Act (8 U.S.C. 
        1258), or adjustment of status, if eligible therefor, under 
        this section and section 245(e) of such Act (8 U.S.C. 1255(e)).
          ``(2)(A) The Secretary of Labor shall establish, administer, 
        and enforce a system for allocating and determining the number, 
        terms, and conditions of permits to be issued to prospective 
        employers for each temporary alien worker who would not 
        otherwise be eligible for admission under the Immigration and 
        Nationality Act. This system shall provide for a reduction in 
        the allocation of permits for such workers on an annual basis, 
        to zero, over a period not to exceed ten years. In no event 
        shall a permit be valid beyond the expiration of the transition 
        period. This system may be based on any reasonable method and 
        criteria determined by the Secretary of Labor to promote the 
        maximum use of, and to prevent adverse effects on wages and 
        working conditions of, persons authorized to work in the United 
        States under section 274A of the Immigration and Nationality 
        Act (8 U.S.C. 1324a), and lawfully admissible freely associated 
        state citizen labor.
          ``(B) The Secretary of Labor is authorized to establish and 
        collect appropriate user fees for the purpose of this section. 
        Amounts collected pursuant to this section shall be deposited 
        in a special fund of the Treasury. Such amounts shall be 
        available, to the extent and in the amounts as provided in 
        advance in appropriations acts,for the purposes of 
administering this section. Such amounts are authorized to be 
appropriated to remain available until expended.
          ``(3) The Attorney General shall set the conditions for 
        admission of nonimmigrant temporary alien workers under the 
        transition program, and the Secretary of State shall authorize 
        the issuance of nonimmigrant visas for aliens to engage in 
        employment only as authorized in this subsection: Provided, 
        That such visas shall not be valid for admission to the United 
        States, as defined in section 101(a)(38) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(38)), except the Commonwealth 
        of the Northern Mariana Islands. An alien admitted to the 
        Commonwealth of the Northern Mariana Islands on the basis of 
        such a nonimmigrant visa shall be permitted to engage in 
        employment only as authorized pursuant to the transition 
        program. No alien shall be granted nonimmigrant classification 
        or a visa under this subsection unless the permit requirements 
        established under paragraph (2) have been met.
          ``(4) An alien admitted as a nonimmigrant pursuant to this 
        subsection shall be permitted to transfer between employers in 
        the Commonwealth of the Northern Mariana Islands during the 
        period of such alien's authorized stay therein to the extent 
        that such transfer is authorized by the Attorney General in 
        accordance with criteria established by the Attorney General 
        and the Secretary of Labor.
    ``(e) Immigrants.--With the exception of immediate relatives (as 
defined in section 201(b)(2) of the Immigration and Nationality Act (8 
U.S.C. 1151(b)(2)) and, except as provided in paragraphs (1) and (2), 
no alien shall be granted initial admission as a lawful permanent 
resident of the United States at a port-of-entry in the Commonwealth of 
the Northern Mariana Islands, or at a port-of-entry in Guam for the 
purpose of immigrating as the Commonwealth of the Northern Mariana 
Islands.
          ``(1) Family-sponsored immigrant visa.--The Attorney General, 
        based on a joint recommendation of the Governor and Legislature 
        of the Commonwealth of the Northern Mariana Islands, and in 
        consultation with appropriate federal agencies, may establish a 
        specific number of additional initial admissions as a family-
        sponsored immigrant at a port-of-entry in the Commonwealth of 
        the Northern Mariana Islands, or at a port-of-entry in Guam for 
        the purpose of immigrating to the Commonwealth of the Northern 
        Mariana Islands, pursuant to sections 202 and 203(a) of the 
        Immigration and Nationality Act (8 U.S.C. 1152 and 1153(a)) 
        during the following year.
          ``(2) Employment-based immigrant visas.--
                  ``(A) If the Secretary of Labor, upon receipt of a 
                joint recommendation of the Governor and Legislature of 
                the Commonwealth of the Northern Mariana Islands, finds 
                that exceptional circumstances exist with respect to 
                the inability of employers in the Commonwealth of the 
                Northern Mariana Islands to obtain sufficient work-
                authorized labor, the Attorney General may establish a 
                specific number of employment-based immigrant visas to 
                be made available during the following fiscal year 
                under section 203(b) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(b)).
                  ``(B) Upon notification by the Attorney General that 
                a number has been established pursuant to subparagraph 
                (a), the Secretary of State may allocate up to that 
                number of visas without regard to the numerical 
                limitations set forth in sections 202 and 203(b)(3)(B) 
                of the Immigration and Nationality Act (8 U.S.C. 1152 
                and 1153(b)(3)(B)). Visa numbers allocated under this 
                subparagraph shall be allocated first from the number 
                of visas available under section 203(b)(3) of such Act 
                (8 U.S.C. 1153(b)(3)), or, if such visa numbers are not 
                available, from the number of visas available under 
                section 203(b)(5) of such Act (8 U.S.C. 1153(b)(5)).
                  ``(C) Persons granted employment-based immigrant 
                visas under the transition program may be admitted 
                initially at a port-of-entry in the Commonwealth of the 
                Northern Mariana Islands, or at a port-of-entry in Guam 
                for the purpose of immigrating to the Commonwealth of 
                the Northern Mariana Islands, as lawful permanent 
                resident of the United States.
                  ``(D) Any immigrant visa issued pursuant to this 
                paragraph shall be valid only for application for 
                initial admission to the Commonwealth of the Northern 
                Mariana Islands. The admission of any alien pursuant to 
                such an immigrant visa shall be an admission for lawful 
                permanent residence and employment only in the 
                Commonwealth of the Northern Mariana Islands during the 
                first five years after such admission. Such admission 
                shall not authorize permanent residence or employment 
                in any other part of the United States during such 
                five-year period. An alien admitted for permanent 
                residence pursuant to this paragraph shall be issued 
                appropriate documentation identifying the person as 
                having been admitted pursuant to the terms and 
                conditions of this transition program, and shall be 
                required to comply with a system for the registration 
                and reporting of aliens admitted for permanent 
                residence under the transition program, to be 
                established by the Attorney General, by regulation, 
                consistent with the Attorney General' authority under 
                Chapter 7 of Title II of the Immigration and 
                Nationality Act (8 U.S.C. 1301-1306).
                  ``(E) Nothing in this paragraph shall preclude an 
                alien who has obtained lawful permanent resident status 
                pursuant to this paragraph from applying, if otherwise 
                eligible under this section and under the Immigration 
                and Nationality for an immigrant visa or admission as a 
                lawful permanent resident under the Immigration and 
                Nationality Act.
                  ``(F) Any alien admitted under this subsection, who 
                violates the provisions of thisparagraph, or who is 
found removable or inadmissible under section 237(a)(8) U.S.C. 
1227(a)), or paragraphs (1), (2), (3), (4)(A), (4)(B), (6), (7), (8), 
or (9) of section 212(a) (8 U.S.C. 1182(a)), shall be removed from the 
United States pursuant to sections 239, 240, and 241 of the Immigration 
and Nationality Act (8 U.S.C. 1229, 1230, and 1231).
                  ``(G) The Attorney General may establish by 
                regulation a procedure by which an alien who has 
                obtained lawful permanent resident status pursuant to 
                this paragraph may apply for a waiver of the 
                limitations on the terms and conditions of such status. 
                The Attorney General may grant the application for 
                waiver, in the discretion of the Attorney General, if--
                          ``(i) the alien is not in removal 
                        proceedings,
                          ``(ii) the alien has been a person of good 
                        moral character for the preceding five years,
                          ``(iii) the alien has not violated the terms 
                        and conditions of the alien's permanent 
                        resident status, and
                          ``(iv) the alien would suffer exceptional and 
                        extremely unusual hardship were such terms and 
                        conditions not waived.
                  ``(H) The limitations on the terms and conditions of 
                an alien's permanent residence set forth in this 
                paragraph shall expire at the end of five years after 
                the alien's admission to the Commonwealth of the 
                Northern Mariana Islands as a permanent resident and 
                the alien is thereafter fully subject to the provisions 
                of the Immigration and Nationality Act. Following the 
                expiration of such limitations, the permanent resident 
                alien may engage in any lawful activity, including 
                employment, anywhere in the United States. Such an 
                alien, if otherwise eligible for naturalization, may 
                count the five-year period in the Commonwealth of the 
                Northern Mariana Islands towards time in the United 
                States for purposes of meeting the residence 
                requirements of Title III of the Immigration and 
                Nationality Act.
                  ``(I) Special provision to ensure adequate employment 
                in the hotel industry after the transition period 
                ends.--During the fiscal year preceding the ninth 
                anniversary of the effective date of this subsection, 
                and in the fourth year of any extension thereafter, the 
                Attorney General and the Secretary of Labor shall 
                consult with the Governor of the Commonwealth of the 
                Northern Mariana Islands to ascertain the current and 
                future labor needs of the hotel industry in the 
                Commonwealth of the Northern Mariana Islands, and to 
                determine whether a five-year extension of the 
                provisions of this paragraph would be necessary to 
                ensure an adequate number of workers in the hotel 
                industry. If the Attorney General and Secretary of 
                Labor determine that such an extension is necessary to 
                ensure an adequate number of workers in the hotel 
                industry, the Attorney General shall provide notice by 
                publication in the Federal Register that the provisions 
                of this paragraph will be extended for a five-year 
                period with respect to the hotel industry only. The 
                Attorney General may authorize further extensions of 
                this paragraph with respect to the hotel industry in 
                the Commonwealth of the Northern Mariana Islands if, 
                after the Attorney General and the Secretary of Labor 
                have consulted with the Governor of the Commonwealth of 
                the Northern Mariana Islands, the Attorney General 
                determines that a further extension is required to 
                ensure an adequate number of workers in the hotel 
                industry in the Commonwealth of the Northern Mariana 
                Islands.
    ``(f) Investor Visas.--The following requirements shall apply to 
aliens who have been admitted to the Commonwealth of the Northern 
Mariana Islands in long-term investor status under the immigration laws 
of the Commonwealth of the Northern Mariana Islands on or before the 
effective date of the Northern Mariana Islands Covenant Implementation 
Act and who have continuously maintained residence in the Commonwealth 
of the Northern Mariana Islands pursuant to such status:
          ``(1) Such aliens may apply to the Attorney General or a 
        consular officer for classification as a nonimmigrant under the 
        transition program. Any nonimmigrant status granted as a result 
        of such application shall terminate not later than December 31, 
        2008.
          ``(2) During the six-month period beginning January 1, 2008, 
        and ending June 30, 2008, any alien granted nonimmigrant status 
        pursuant to paragraph (1) shall be permitted to apply to the 
        Attorney General for status as a lawful permanent resident of 
        the United States effective on or after January 1, 2009, and 
        may be granted such status if otherwise admissible. Upon 
        granting permanent residence to any such alien, the Attorney 
        General shall advise the Secretary of State who shall reduce by 
        one number, during the fiscal year in which the grant of status 
        becomes effective, the total number of immigrant visas 
        available to natives of the country of the alien's 
        chargeability under section 202(b) of the Immigration and 
        Nationality Act (8 U.S.C. 1152(b)).
    ``(g) Persons Lawfully Admitted Under the Commonwealth of the 
Northern Mariana Islands Immigration Law.--Notwithstanding subsection 
(d) of this section, persons who would have been lawfully present in 
the Commonwealth of the Northern Mariana Islands pursuant to the 
immigration laws of the Commonwealth of the Northern Mariana Islands on 
the effective date of this subsection, shall be permitted to remain in 
the Commonwealth of the Northern Mariana Islands for the completion of 
the period of admission under such laws, or for two years, whichever is 
less.
    ``(h) Travel Restrictions for Certain Applicants for Asylum.--Any 
alien admitted to the Commonwealth of the Northern Mariana Islands 
pursuant to the immigration laws of the Commonwealth of the Northern 
Mariana Islands or pursuant to subsections (d) or (e) of this section 
who files an application seeking asylum in the UnitedStates shall be 
required, pursuant to regulations established by the Attorney General, 
to remain in the Commonwealth of the Northern Mariana Islands, during 
the period of time the application is being adjudicated or during any 
appeals filed subsequent to such adjudication. An applicant for asylum 
who, during the time his application is being adjudicated or during any 
appeals filed subsequent to such adjudication, leaves the Commonwealth 
of the Northern Mariana Islands of his own will without prior 
authorization by the Attorney General thereby abandons the application.
    ``(i) Effect on Other Laws.--The provisions of this section and the 
Immigration and Nationality Act, as amended by the Northern Mariana 
Islands Covenant Implementation Act, shall supersede and replace all 
laws, provisions, or programs of the Commonwealth of the Northern 
Mariana Islands relating to the admission of aliens and the removal of 
aliens from the Commonwealth of the Northern Mariana Islands.
    ``(j) Accrual of Time for Purposes of Section 212 (A) (9)(B) of the 
Immigration and Nationality Act.--No time that an alien was present in 
violation of the laws of the Commonwealth of the Northern Mariana 
Islands shall be counted for purposes of the ground of inadmissibility 
in section 212(a)(9)(B) of the Immigration and Nationality Act (8 
U.S.C. 1182(a)(9)(B)) prior to the date of enactment of this 
subsection.''
    (b) Conforming Amendments.--(1) Section 101(a) of the Immigration 
and Nationality Act (8 U.S.C. 101(a)) is amended:
          (A) in paragraph (36), by deleting ``and the Virgin Islands 
        of the United States.'' and substituting ``the Virgin Islands 
        of the United States, and the Commonwealth of the Northern 
        Mariana Islands'', and;
          (B) in paragraph (38), by deleting ``and the Virgin Islands 
        of the United States,'' and substituting ``the Virgin Island of 
        the United States, and the Commonwealth of the Northern Mariana 
        Islands''.
    (2) Section 212(l) of the Immigration and Nationality Act (8 U.S.C. 
1182(l)) is amended--
          (A) in paragraph (1)--
                  (i) by striking ``stay on Guam'', and inserting 
                ``stay on Guam and the Commonwealth of the Northern 
                Mariana Islands'',
                  (ii) by inserting ``a total of'' after ``exceed'', 
                and,
                  (iii) by striking the words ``after consultation with 
                the Governor of Guam,'' and inserting ``after 
                respective consultation with the Governor of Guam or 
                the Governor of the Commonwealth of the Northern 
                Mariana Islands,'';
          (B) in paragraph (1)(A), by striking ``on Guam'', and 
        inserting ``on Guam or the Commonwealth of the Northern Mariana 
        Islands, respectively,'';
          (C) in paragraph (2)(A), by striking ``on Guam'', and 
        inserting ``on Guam or the Commonwealth of the Northern Mariana 
        Islands, respectively,'';
          (D) in paragraph (3), by striking ``Government of Guam'' and 
        inserting ``Government of Guam or the Government of the 
        Commonwealth of the Northern Mariana Islands''.
    (3) The amendments to the Immigration and Naturalization Act made 
by this subsection shall take effect when sections 6(b) through 6(j) of 
Public Law 94-241 take effect.
    (c) Technical Assistance Program.--The Secretaries of Interior and 
Labor, in consultation with the Commonwealth of the Northern Mariana 
Islands, shall develop a program of technical assistance, including 
recruitment and training, to aid employers in securing employees from 
among United States labor or lawfully admissible freely associated 
state citizen labor.
    (d) Department of Justice and Department of Labor Operations.--The 
Attorney General and the Department of Labor are authorized to 
establish and maintain Immigration and Naturalization Service, 
Executive Office of Immigration Review, and Department of Labor 
operations in the Commonwealth of the Northern Mariana Islands for the 
purpose of performing their responsibilities under the Immigration and 
Nationality Act, as amended, and under the transition program. To the 
extent practicable and consistent with the satisfactory performance of 
their assigned responsibilities under applicable law, the Departments 
of Justice and Labor shall recruit and hire from among qualified 
applicants resident in the Commonwealth of the Northern Mariana Islands 
for staffing such operations.
    (e) Report to the Congress.--The President shall report to the 
Senate Committee on Energy and Natural Resources, and the House 
Committee on Resources, within six months after the fifth anniversary 
of the enactment of this Act, evaluating the overall effect of the 
transition program and the Immigration and Nationality Act on the 
Commonwealth of the Northern Mariana Islands, and at other times as the 
President deems appropriate.
    (f) Limitation on Number of Temporary Workers Prior to Findings of 
the Attorney General or Application of the Immigration and Nationality 
Act, and Establishment of the Transition Program.--During the period 
between enactment of this Act and either the date that the Attorney 
General finds that the Government of the Commonwealth of the Northern 
Mariana Islands possesses the institutional capability and genuine 
commitment to enforce an effective system of immigration control under 
section 6(a)(2) of Public Law 94-241 (as amended by this Act), or, if 
the Attorney General finds that the Government of the Commonwealth of 
Northern Marianas fails to meet such conditions, the effective date of 
the transition program established under section 6 of such Act, the 
Government of the Commonwealth of the Northern Mariana Islands shall 
not permit an increase in the total number of temporary alien workers 
who are legally present in the Commonwealth of the Northern Mariana 
Islands on the date of enactment of this section.
    (g) Appropriations.--There are authorized to be appropriated such 
sums as may be necessary to carry out the purposes of this section and 
of the Immigration and Nationality Act with respect to the Commonwealth 
of the Northern Mariana Islands.
    (h) Effective Date.--Subsections (c) through (g) of this section 
shall take effect when sections 6(b) through 6(j) of Public Law 94-241 
take effect.

SEC. 3. INDUSTRY COMMITTEE.

    The Fair Labor Standards Act of 1938 (52 Stat. 1062, 29 U.S.C. 201) 
is amended as follows:
          (1) in section 5 (29 U.S.C. 205), by inserting ``or the 
        Northern Mariana Islands, respectively,'' after ``American 
        Samoa,'' each place it appears;
          (2) in paragraph 6(a)(3) (29) U.S.C. 206(a)(3))--
                  (A) by inserting ``or the Northern Mariana Islands,'' 
                after ``American Samoa,'',
                  (B) by inserting ``, except that, in the case of the 
                Northern Mariana Islands, the rate shall not be raised 
                more than fifty cents per year'' after ``of this 
                subsection'' and before the semicolon;
          (3) in section 8 (29 U.S.C. 208), by inserting ``or the 
        Northern Mariana Islands, respectively,'' after ``American 
        Samoa,'' each place it appears; and
          (4) in subsection 13(f) (29 U.S.C. 213(f), by inserting ``the 
        Northern Mariana Islands;'' after ``American Samoa;''.

                         Purpose of the Measure

    The legislation, as introduced, extends the provisions of 
the Immigration and Nationality Act to the CNMI one year 
following enactment with special transition provisions. The 
legislation also sets the minimum wage in the CNMI at $3.35/
hour effective one month after enactment with 30 cent/hour 
increases each year thereafter until the federal level is 
reached. The legislation amends General Note 3(a) of the Tariff 
Schedules to limit the duty free entry of textile or apparel 
product made in the CNMI unless the product has 50% U.S. labor 
content (phased in over three years) with a similar limitation 
on the use of ``Made in the USA'' label.
    The Committee amendment would delete the amendment to the 
Tariff Schedules and the labor requirement for labeling. In 
addition, the Committee amendment would substitute an industry 
committee under the Fair Labor Standards Act to establish 
minimum wages and would condition extension of federal 
immigration law on a finding by the Attorney General after one 
year that the Commonwealth either did not have an effective 
immigration program or had not demonstrated a commitment to 
enforce one.

                          Background and Need

    The Commonwealth of the Northern Mariana Islands is a three 
hundred mile archipelago consisting of fourteen islands 
stretching north of Guam. The largest inhabited islands are 
Saipan, Rota, and Tinian. Magellan landed at Saipan in 1521 and 
the area was controlled by Spain until the end of the Spanish 
American War. Guam, the southernmost of the Marianas, was ceded 
to the United States following the Spanish-American War and the 
balance sold to Germany together with the remainder of 
Germany's possessions in the Caroline and Marshall Islands.
    Japan seized the area during World War I and became the 
mandatory power under a League of Nations Mandate for German's 
possessions north of the equator on December 17, 1920. By the 
1030's, Japan had developed major portions of the area and 
begun to fortify the islands. Guam was invaded by Japanese 
forces from Saipan in 1941. The Marianas were secured after 
heavy fighting in 1944 and the bases on Tinian were used for 
the invasion of Okinawa and for raids on Japan, including the 
nuclear missions on Hiroshima and Nagasaki. In 1947, the 
Mandated islands were placed under the United Nations 
trusteeship system as the Trust Territory of the Pacific 
Islands (TTPI) and the United States was appointed as the 
Administering Authority. The area was divided into six 
administrative districts with the headquarters located in 
Hawaii and then in Guam. The TTPI was the only ``strategic'' 
trusteeship with review by the Security Council rather than the 
General Assembly of the United Nations. The Navy administered 
the Trusteeship, together with Guam, until 1951, when 
administrative jurisdiction was transferred to the Department 
of the Interior. The Northern Marianas, however, were returned 
to Navy jurisdiction from 1952-1962. In 1963, administrative 
headquarters were moved to Saipan.
    With the establishment of the Congress of Micronesia in 
1965, efforts to reach an agreement on the future political 
status of the area began. Attempts to maintain a political 
unity within the TTPI were unsuccessful, and each of the 
administrative districts (Kosrae eventually separated from 
Pohnpei District in the Carolines) sought to retain its 
separate identity. Four of the districts became the Federated 
States of Micronesia, the Marshalls became the Republic of the 
Marshall Islands, and Palau became the Republic of Palau, all 
sovereign countries in free association with the United States 
under Compacts of Free Association. The Marianas had sought 
reunification with Guam and U.S. territorial status from the 
beginning of the Trusteeship. Separate negotiations with the 
Marianas began in December 1972 and concluded in 1975.
    In 1976, Congress approved a Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Political Union 
with the United States (P.L. 94-241). The Covenant had been 
approved in a United Nations observed plebescite in the 
Northern Mariana Islands and formed the basis for the 
termination of the United Nations Trusteeship with respect to 
the Northern Mariana Islands in 1986 together with the Republic 
of the Marshall Islands and the Federated States of Micronesia. 
Prior to termination, those provisions of the Covenant that 
were not inconsistent with the status of the area (such as 
extension of U.S. sovereignty) were made applicable by the 
United States as Administering Authority. Upon termination of 
the Trusteeship, the CNMI became a territory of the United 
States and its residents became United States citizens. Under 
the terms of the Covenant certain federal laws would be 
inapplicable in the CNMI, including minimum wage to take into 
consideration the relative economic situation of the islands 
and their relation to other east Asian countries.
    Although the population of the CNMI was only 15,000 people 
in 1976 when the Covenant went into effect, the population now 
exceeds 60,000 and U.S. citizens are a minority. The resident 
population is probably about 24,000 with 28,000 alien workers 
and estimates of at least 10,000 illegal aliens. Permits for 
non-resident workers were reported at 22,500 for 1994, the 
largest category being for manufacturing. Tourism has climbed 
from about 230,000 visitors in 1987 to almost 600,000 in 1994. 
Total revenues for the CNMI for 1993 were estimated at $157 
million.
    The 1995 census statistics from the Commonwealth list 
unemployment at 7.1%, with CNMI born at 14.2% and Asia born at 
4.5%. Since no guest workers should be on island without jobs, 
the 4.5% suggests a serious problem in the CNMI. The 14.2% 
local unemployment suggests that either guest workers are 
taking jobs from local residents, or the wage rates or types of 
occupation are not adequate to attract local workers.
    The Covenant established a unique system in the CNMI under 
which the local government controlled immigration and minimum 
wage levels and also had the benefit of duty and quota free 
entry of manufactured goods under the provisions of General 
Note 3(a) of the Harmonized Tariff Schedules. The Section by 
Section analysis of the Committee Report on the Covenant 
provides in part:

          Section 503.--This section deals with certain laws of 
        the United States which are not now applicable to the 
        Northern Mariana Islands and provides that they will 
        remain inapplicable except in the manner and to the 
        extent that they are made applicable by specific 
        legislation enacted after the termination of the 
        Trusteeship. These laws are:
          The Immigration and Naturalization Laws (subsection 
        (a)). The reason this provision is included is to cope 
        with the problems which unrestricted immigration may 
        impose upon small island communities. Congress is aware 
        of those problems. * * * It may well be that these 
        problems will have been solved by the time of the 
        termination of the Trusteeship Agreement and that the 
        Immigration and Nationality Act containing adequate 
        protective provisions can then be introduced to the 
        Northern Mariana Islands. * * *
          The same consideration applies to the introduction of 
        the Minimum Wage Laws. (Subsection (c)). Congress 
        realizes that the special conditions prevailing in the 
        various territories require different treatment. * * * 
        In these circumstances, it would be inappropriate to 
        introduce the Act to the Northern Mariana Islands 
        without preliminary studies. There is nothing which 
        would prevent the Northern Mariana Islands from 
        enacting their own Minimum Wage Legislation. Moreover, 
        as set forth in section 502(b), the activities of the 
        United States and its contractors in the Northern 
        Mariana Islands will be subject to existing pertinent 
        Federal Wages and Hours Legislation. (S. Rept. 94-433, 
        pp. 77-78)

    The Committee anticipated that by the termination of the 
Trusteeship, the Federal Government would have found some way 
of preventing a large influx of persons into the Marianas, 
recognizing the Constitutional limitations on restrictions on 
travel. In part, the Covenant attempted to deal with that 
possibility by enacting a restraint on land alienation for 
twenty-five years, subject to extension by the CNMI. The 
minimum wage issue was more difficult, especially in light of 
the Committee's experience in the Pacific. The extension of 
minimum wage to Kwajalein was a proximate cause of the 
overcrowding at Ebeye in the Kwajalein Atoll as hundreds of 
Marshallese moved to the small island in hope of obtaining a 
job at the Missile Range. The CNMI, at the time the Covenant 
was negotiated, had a limited private sector economy and was 
under the overall Trust Territory minimum wage, which was 
considerably lower than the federal minimum wage. The Marianas 
also had been a closed security area until the early 1960's, 
further limiting development.
    Shortly after the Covenant went into effect, the CNMI began 
to experience a growth in tourism and a need for workers in 
both the tourist and construction industries. Interest also 
began to grow in the possibility of textile production. Initial 
interest was in production of sweaters made of cotton, wool and 
synthetic fibers. The CNMI, like the other territories, except 
for Puerto Rico, is outside the U.S. customs territory but can 
import products manufactured in the territory duty free 
provided that the products meet a certain value added amount 
under General Note 3(a) of the Tariff Schedules (then called 
Headnote 3(a)). The first company began operation in October 
1983 and within a year was joined by two other companies. Total 
employment for the three firms was 250 of which 100 were local 
residents. At the time, Guam had a single firm, Sigallo-Pac, 
also engaged in sweater manufacture with 275 workers, all of 
whom, however, were U.S. citizens.
    Attempts by territories to develop textile or apparel 
industries have traditionally met resistance from Stateside 
industries. The use of alien labor in the CNMI intensified that 
concern, and efforts began in 1984 to sharply cut back or 
eliminate the availability of duty free treatment for the 
territories. The concerns also complicated Senate consideration 
of the Compacts of FreeAssociation in 1985 and led to a delay 
of several months in floor consideration when some Members sought to 
attach textile legislation to the Compact legislation. By 1986, 
conditions led the Assistant Secretary, Territorial and International 
Affairs of the Department of the Interior to write the Governor on the 
situation and that ``[w]ithout timely and effective action to reverse 
the current situation, I must consider proposing Congressional 
enactment of U.S. Immigration and Naturalization requirements for the 
NMI''.
    By 1990, the population of the CNMI was estimated at 43, 
345 of whom only 16,752 had been born in the CNMI. Of the 
26,593 born elsewhere, 2,491 had entered from 1980-1984, 2,591 
had entered in 1985 or 1986, 6,438 had entered in 1987 or 1988, 
and 12,955 had entered in 1989 or 1990. Of the population in 
1990, 21,332 were classified as Asian. The labor force (all 
persons 16+years including temporary alien labor) grew from 
9,599 in 1980 to 32,522 in 1990. Manufacturing grew from 1.9% 
of the workforce in 1980 to 21.9% in 1990, only slightly behind 
construction which grew from 16.8% to 22.2% in the same time 
frame. The construction numbers track a major increase in hotel 
construction. At the same time, increases in the minimum wage 
were halted although wages paid to U.S. citizens (mainly public 
sector and management) exceeded federal levels.
    In 1993, in response to Congressional concerns, the CNMI 
stated that it proposed to enact legislation to raise the wage 
rates from $2.15 to Federal levels by stages and that 
legislation would be enacted to prevent any abuse of workers.
    Repeated allegations of violations of applicable Federal 
laws relating to worker health and safety concerns with respect 
to immigration problems, including the admission of undesirable 
aliens, and reports of worker abuse, especially in the domestic 
and garment worker sectors, led to the inclusion of a $7 
million set aside in appropriations in 1994 to support Federal 
agency presence in the CNMI. The Department of the Interior 
reported to the Committee on April 24, 1995 that:
          (1) $3 million would be used by the CNMI for a 
        computerized immigration identification and tracking 
        system and for local projects;
          (2) $2.2 million would be used by the Department of 
        Justice to strengthen law enforcement, including the 
        hiring of an additional FBI agent and Assistant U.S. 
        Attorney;
          (3) $1.6 million would be used by Labor for two 
        senior investigators as well as for training; and
          (4) $200,000 would be used by Treasury for assistance 
        in investigating violations of Federal law with respect 
        to firearms, organized crime, and counterfeiting.
    In addition, the report recommended that Federal law be 
enacted to phase in the current CNMI minimum wage rates to the 
federal minimum wage level in 30 cent increments (as then 
provided by CNMI legislation), end mandatory assistance to the 
CNMI when the current agreement was fulfilled, continue annual 
support of federal agencies at a $3 million/year level (which 
would include funding for a detention facility that meets 
Federal standards), and possible federal take-over of 
immigration.
    During the 104th Congress, the Senate passed S. 638, 
legislation supported by the Administration, that in part would 
have enacted the phase in of the CNMI minimum wage rate to U.S. 
levels in 30 cent increments. No action was taken by the House, 
and in the interim, the CNMI delayed the scheduled increases 
and then instituted a limited increase of 30 cents/hour except 
for the garment and construction industries where the increase 
was limited to 15 cents/hour. The legislation also required the 
Commonwealth ``to cooperate in the identification and, if 
necessary, exclusion or deportation from the Commonwealth of 
the Northern Mariana Islands of persons who represent security 
or law enforcement risks to the Commonwealth of the Northern 
Mariana Islands or the United States.'' (Section 4 of S. 638) 
At the same time that Congress began to consider legislation on 
minimum wage and immigration issues, concern over the 
commitment of Federal agencies to administer and enforce those 
Federal laws already applicable to the CNMI led the Committee 
to include a provision in S. 638 that the annual report on the 
law enforcement initiative also include: ``(6) the reasons why 
Federal agencies are unable or unwilling to fully and 
effectively enforce Federal laws applicable within the 
Commonwealth of the Northern Mariana Islands unless such 
activities are funded by the Secretary of the Interior.'' 
(Section 3 of S. 638)
    In February 1996, Members of the Committee visited the CNMI 
and met with local and Federal officials as well as inspected a 
garment factory and meeting with Bangladesh security guards who 
had not been paid and who were living in substandard 
conditions. As a result of the meetings and continued 
expressions of concern over conditions, the Committee held an 
oversight hearing on June 26, 1996, to review the situation in 
the CNMI. At the hearing, the acting Attorney General of the 
Commonwealth requested that the Committee delay any action on 
legislation until the Commonwealth could complete a study on 
minimum wage and promised that the study would be completed by 
January. That timing would have enabled the Committee to 
revisit the issue in the April-May 1997 period after the 
Administration had transmitted its annual report on the law 
enforcement initiative. While the CNMI Study was not finally 
transmitted until April, the Administration did not transmit 
its annual report, which was due in April, until July. On May 
30, 1997, the President wrote the Governor of the Northern 
Marianas that he was concerned over activities in the 
Commonwealth and had concluded that Federal immigration, 
naturalization, and minimum wage laws should apply.
    Given the reaction that followed the President's letter, 
the Chairman of the Committee asked the Administration to 
provide a drafting service of the language needed to implement 
the recommendations in the annual report and informed the 
Governor of the Commonwealth of the request and that the 
Committee intended to consider the legislation after the 
Commonwealth had an opportunity to review it. The drafting 
service was not provided until October 6, 1997, and was 
introduced on October 8, 1997, shortly before the elections in 
the CNMI. The Committee deferred hearings so as not to intrude 
unnecessarily into local politics and to allow the CNMI an 
opportunity to review and comment on the legislation after the 
local elections.
    The U.S. Commission on Immigration Reform conducted a site 
visit to the Northern Marianas in July 1997 and issued a report 
which, in general, supports the need to address immigration. 
The report, however, also raises some concerns with the 
extension of U.S. immigrationlaws. The report found problems in 
the CNMI ``ranging from bureaucratic inefficiencies to labor abuses to 
an unsustainable economic, social and political system that is 
antithetical to most American values'' but ``a willingness on the part 
of some CNMI officials and business leaders to address the various 
problems''. The report expressed some concerns over the extension of 
Federal immigration laws, but also noted that absent the threat of 
Federal extension, ``the CNMI is unlikely on its own to correct the 
problems inherent in its immigration system''. The report recommended 
that specific benchmarks for an effective immigration system be 
negotiated and that the ``benchmarks should be codified in statute, 
with provision for immediate imposition of Federal law if the 
benchmarks are not met within the prescribed time.'' Specifically the 
report recommended that ``[s]hould the CNMI fail to negotiate 
expeditiously and in good faith, or renege on the negotiated 
agreements, we agree that imposition of federal law by Congress would 
be required.'' (Emphasis in original).
    While the outright exception from the minimum wage 
provisions of Federal law in the Covenant is an anomaly, so 
also is the direct phase in to Federal levels contained in the 
legislation as introduced. Congress has generally recognized 
the different economic circumstances of the territories and 
provided for a ``special industry committee''. The objective of 
an industry committee is to set wage rates by industry ``to 
reach as rapidly as is economically feasible without 
substantially curtailing employment the objective of the 
[Federal] minimum wage rate'' (29 U.S.C. 209(a)). The 
committees may make classifications within industries. Such 
committees were established for Puerto Rico and the Virgin 
Islands in 1940 and continued until Congress provided for step 
increases in 1977 for the remaining covered industries. An 
industry committee has been applicable in American Samoa since 
1956. In 1992, the Department of the Interior provided formal 
Administration opposition to legislation that would have 
extended Federal minimum wage rates to Samoa stating that 
``[i]mposition of the United States mainland minimum wage on 
American Samoa would have a serious, perhaps devastating effect 
on the territorial economy and jobs''. The industry committee 
for Samoa set rates for 1996 that ranged from $2.45/hour for 
local government employees to $3.75/hour for the subclass of 
stevedoring and lighterage. Wages for the canneries was set at 
$3.10/hour.
    While the economic situation of the CNMI is considerably 
different from that of American Samoa, it is not absolutely 
clear that all segments of all industries in the CNMI are 
capable of sustaining Federal minimum wage rates. Unlike 
American Samoa, the minimum wage issue in the CNMI appears to 
involve only temporary non-immigrant workers. All U.S. citizens 
resident in the CNMI appear to be earning at or above Federal 
minimum wage levels. The CNMI completed a minimum wage analysis 
in April 1997 by the HayGroup. The analysis recommended against 
a change in current wage rates for at least three years and 
planning to accommodate growth. An industry committee would be 
able to assess the merits of claims by individual industries 
and structure a system that takes into account the individual 
needs of particular industries or sub-classes.

                          Legislative History

    S. 1275 was transmitted by the Administration on October 6, 
1997, and introduced on October 8, 1997. Similar legislation, 
S. 1100, was introduced on July 31, 1997. Similar legislation, 
H.R. 1450, was also introduced in the House on April 24, 1997. 
A hearing was conducted before the full Committee on March 31, 
1998. During the 104th Congress, the Committee considered S. 
638, which passed the Senate on July 20, 1995. That legislation 
contained provisions dealing with immigration and minimum wage 
in the Commonwealth of the Northern Mariana Islands.
    At the business meeting on May 20, 1998, the Committee on 
Energy and Natural Resources ordered S. 1275, as amended, 
favorably reported.

           Committee Recommendations and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on May 20, 1998, by a majority vote of a 
quorum present, recommends that the Senate pass S. 1275, if 
amended as described herein.
    The roll call vote on reporting the measure was 16 yeas, 3 
nays, as follows:
        YEAS                          NAYS
Mr. Murkowski                       Mr. Nickles*
Mr. Domenici                        Mr. Kyl*
Mr. Campbell*                       Mr. Grams
Mr. Thomas
Mr. Smith*
Mr. Gorton
Mr. Burns
Mr. Bumpers
Mr. Ford*
Mr. Bingaman
Mr. Akaka
Mr. Dorgan
Mr. Graham*
Mr. Wyden*
Mr. Johnson
Ms. Landrieu

    * Indicates voted by proxy.

             Summary and Explanation of Committee Amendment

    The Committee substitute amendment deletes all provisions 
of S. 1275 dealing with tariff treatment and use of ``Made in 
the USA'' label, substitutes a special industry committee for 
the provisions mandating a scheduled increase in minimum wage 
levels to federal levels, and modifies the provisions extending 
the Federal immigration laws to provide the Northern Marianas 
with a final opportunity to establish effective immigration 
control. In the event that Federal immigration laws are 
extended, the amendment includes special provisions that 
critical labor needs will be met.
    The Committee amendment deletes the provisions of S. 1275 
that would impose a labor requirement on apparel products from 
the Northern Marianas to be eligible for duty free treatment 
under General Note 3(a) of the tariff schedules and for use of 
the ``Made in the USA'' label. The Committee recognizes the 
unique situation in the Northern Marianas, but believes that 
further review should occur before such a requirement is 
enacted. U.S. trade policy has always been expressed in terms 
of value added in a territory or possession for duty free 
treatment under General Note 3(a) and not in terms of who added 
the value. With the exception of Puerto Rico, all the 
territories lie outside the customs territory of the United 
States. They have all been permitted to establish industries 
and bring manufactured products into the U.S. customs territory 
duty free provided a certain amount of the value of the product 
was added in the territory. The overriding purpose of General 
Note 3(a) is to attract and promote economic development in the 
territories. Those territories outside the customs territory of 
the United States are in a delicate economic situation and 
Congress needs to be careful that, in seeking to prevent the 
islands from having an unfair advantage over other domestic 
manufacturing within the customs territory, we do not place the 
territories at a disadvantage against foreign countries. Under 
NAFTA, the Caribbean Basin Initiative, the Andean Trade 
Preference Act, and the proposed Africa trade arrangement, 
several countries are able to import textiles and apparel 
manufactured with alien labor. The labor requirements proposed 
in S. 1275 are not simply novel for treatment of U.S. 
territories, but could also create an unknown precedent for 
consideration of general trade policy.
    The Committee amendment substitutes an industry committee 
for the mandatory phase in of Federal minimum wage as proposed 
in S. 1275. While the outright exception from the minimum wage 
provisions of Federal law in the Covenant is an anomaly, so 
also is the proposal in S. 1275. Congress has recognized the 
different economic circumstances of the territories and 
generally provided for a ``special industry committee'' to 
establish reasonable wage levels. The objective of an industry 
committee is to set wage rates by industry ``to reach as 
rapidly as is economically feasible without substantially 
curtailing employment the objective of the [Federal] minimum 
wage rate'' (29 U.S.C. 208(a)). The committees may make 
classifications within industries. Such committees were 
established for Puerto Rico and the Virgin Islands in 1940 and 
continued until 1977. An industry committee has been applicable 
in American Samoa since 1956. In 1992, the Department of the 
Interior provided formal Administration opposition to 
legislation that would have extended Federal minimum wage rates 
to Samoa stating that ``[i]mposition of the United States 
mainland minimum wage on American Samoa would have a serious, 
perhaps devastating effect on the territorial economy and 
jobs''. The industry committee for Samoa set rates for 1996 
that ranged from $2.45/hour for local government employees to 
$3.75/hour for the subclass of stevedoring and lighterage. 
Wages for the canneries was set at $3.10/hour.
    The Committee is aware, however, that in 1995 the 
Administrator of the Wage and Hour Division testified in 
opposition to such a committee for the Marianas, stating that:

            The American Samoa biennial effort costs 
        approximately $40,000. A similar effort in the CNMI 
        would cost more than $200,000 and would require the 
        expertise of valuable personnel for extended periods of 
        time and would take six to nine months to complete.

    The Committee disagrees and believes that the modest cost 
of an industry committee is a worthwhile expenditure. If the 
Administration is wrong in its estimate of the ability of the 
Northern Marianas economy to absorb wage increases, the cost to 
the Federal Government could be far more than $200,000 every 
two years. Over the initial seven-year period of Covenant 
funding (1977-84), Congress provided over $113 million for 
government operations. The Northern Marianas has not received 
operational grants for several years, and the Committee does 
not want to return to those days. The Committee believes that 
an industry committee will be sufficiently responsive to the 
needs of the Northern Marianas.
    The Committee amendment also provides for full extension of 
the Immigration and Nationality Act contingent on the Attorney 
General finding that (1) the Northern Marianas does not possess 
the institutional capacity to administer an effective system of 
immigration control or (2) the Northern Marianas does not have 
a genuine commitment to enforce the system. The Committee does 
not question the commitment of the current administration of 
the Northern Marianas to attempt to rectify the problems that 
led to this legislation, but is mindful that commitments have 
been made in the past and then ignored. The Committee also 
recognizes that the Commission on Immigration Reform and others 
have concluded that some of the problem is structural and that 
a local government simply may not have the capability to 
maintain an effective immigration program within our Federal 
system. As a result, the Committee has adopted a provision that 
will take effect without further Congressional action if the 
requisite findings are made. The Committee views this as a last 
opportunity for the local government and has provided that the 
Attorney General must promptly issue standards so that the 
Marianas is on full notice of what will be required.
    If, however, it does become necessary to extend Federal 
law, the Committee has also adopted amendments to the bill as 
introduced to ensure that those industries, especially 
construction, that depend on temporary workers for temporary 
jobs will have full access to alien labor as necessary. The 
Committee is also mindful of the concern by the hotel industry 
over access to workers, and accordingly has adopted a provision 
that would permit the transition provisions to be extended for 
additional five year periods as long as necessary. The 
Committee amendment requires the Attorney General and the 
Secretary of Labor to consult with the Northern Marianas one 
year prior to the expiration of the transition period, and at 
5-year intervals thereafter, to determine whether the 
provisions will continue to be needed. The Committee expects 
that any uncertainty be resolved in favor of the Northern 
Marianas. If the provisions are extended, a similar 
consultation will occur inthe fourth year of the extension to 
decide if further extensions are warranted.
    The Committee reluctantly adopts these provisions because 
it believes that conditions in the Northern Marianas leave no 
alternative. Extension of additional Federal laws, however, 
will not resolve the problems if Federal agencies do not 
maintain their present commitment to administration and 
enforcement of Federal law. A continuation of these efforts by 
the present administration of the Northern Marianas will also 
be necessary. The Committee expects that Federal agencies will 
continue to absorb all costs of administration and enforcement 
of Federal laws within their budgets. The Committee has 
repeatedly questioned the need for the Department of the 
Interior to underwrite the costs of Federal agencies 
administering their programs. The perception that neither the 
Northern Marianas nor the Federal Government have been 
enforcing applicable laws has contributed to the current 
conditions and the Committee expects that both the Federal and 
local governments will maintain their present commitment 
irrespective of whether the Federal immigration laws are 
extended.

                      Section-by-Section Analysis

Section 1. Short title

    This section is self-explanatory.

Sec. 2. Immigration reform for the Commonwealth of the Northern Mariana 
        Islands

    Subsection (a) amends Public Law 94-241 (90 Stat. 263, 48 
U.S.C. 1801) (the ``Covenant Act'') which approved the Covenant 
to Establish a Commonwealth of the Northern Mariana Islands in 
Political Union with the United States of America (the 
``Covenant'') by adding a new section 6 at the end.
    The new Section 6 provides: (1) the CNMI with an 
opportunity to establish to the satisfaction of the United 
States Attorney General that it is capable and willing to 
maintain an effective system of immigration control; (2) that 
if the CNMI fails to meet either of these requirements, for the 
extension of the Immigration and Nationality Act, as amended 
(the ``INA'') to the CNMI with a transition program to shift 
the CNMI's current contract worker program to a program 
consistent with the INA, and (3) a ``fail-safe'' mechanism to 
ensure that, in the event of labor shortages, the CNMI would be 
still be able to meet its labor needs under the INA.
    Subsection (a) is self-explanatory.
    Subsection (b) provides, except as provided in subsection 
(c) of this section, for a transition program not to exceed ten 
years following the effective date to provide for the issuance 
of: nonimmigrant temporary alien worker; family-sponsored, and 
employment-based immigrant visas. The Committee intends that 
the Federal Government will develop and administer the 
transition program in a manner which is sensitive to the 
legitimate economic needs and unique circumstances of the CNMI.
    Subsection (c) addresses the special problems faced by 
employers in the CNMI due to the Commonwealth's unique 
geographical and labor circumstances by providing an exemption 
from the normal numerical limitations on the admission of H-2B 
temporary workers found in the INA. This subsection would 
enable CNMI employers to obtain sufficient temporary workers, 
if United States labor and lawfully admissible freely 
associated state citizen labor are unavailable, for labor 
sensitive industries such as the construction industry.
    Subsection (d) sets forth several requirements during the 
transition program which must be met with respect to temporary 
alien workers who would otherwise not be eligible for 
nonimmigrant classification under the INA. The intent of this 
subsection is to provide a smooth transition from the CNMI's 
current system.
    Subsection (e) provides general limitations on the initial 
admission of most family-sponsored and employment-based 
immigrants to the CNMI, as well as a mechanism by which the 
CNMI may recommend exemptions to these general limitations. 
This subsection is intended to address the concerns expressed 
by this Committee, in approving the Covenant in 1976, regarding 
the effect that uncontrolled immigration may have on small 
island communities. This subsection further provides for a 
``fail-safe'' mechanism to enable the CNMI to request, in cases 
of labor shortages, that certain unskilled immigrant worker 
visas intended for the CNMI be exempted from the normal 
worldwide and per-country limitations found in the INA for such 
unskilled workers. This subsection does not increase the 
overall number of aliens who may immigrate to the United States 
each year.
    Paragraph (1) of this subsection authorizes the Attorney 
General, based on a request by the CNMI and in consultation 
with other Federal Government agencies, to exempt certain 
family-sponsored immigrants who intend to reside in the CNMI 
from the general limitations on initial admission at a port-of-
entry in the CNMI or in Guam. For example, unless the CNMI 
recommends otherwise, most aliens seeking to immigrate to the 
CNMI on the basis of a family-relationship with a United States 
citizen or lawful permanent resident would be required to be 
admitted as a lawful permanent resident at a port-of-entry 
other than the CNMI or in Guam, such as Honolulu.
    Paragraph (2) generally provides the Attorney General with 
the authority to admit, under certain exceptional circumstances 
and at the request of the CNMI, a limited number of employment-
based immigrants without regard to the normal numerical 
limitations under the INA. The purpose of this provision is to 
provide a ``fail-safe'' mechanism during the transition program 
in the event the CNMI is unable to obtain sufficient workers 
who are otherwise authorized to work under United States law. 
This paragraph would also provide a mechanism for extending the 
``fail-safe'' mechanism beyond the end of the transition 
program with respect to the hotel industry in the CNMI.
    Subparagraph (A) provides that the Secretary of Labor, upon 
receipt of a joint recommendation of the Governor and 
Legislature of the CNMI, may find that exceptional 
circumstances exist which preclude employers in the CNMI from 
obtaining sufficient work-authorized labor. If the Secretary of 
Labor makes such a finding, the Attorney General may establish 
a specific number of employment-based immigrant visas to be 
made available under section 203(b) of the INA during the 
following fiscal year.
    Subparagraph (B) permits the Secretary of State to allocate 
up to the number of visas requested by the Attorney General 
without regard to the normal per-country or ``other worker'' 
employment-based third preference numerical limitations on visa 
issuance. These visas would be allocated first from unused 
employment-based third preference visa numbers, and then, if 
necessary, from unused alien entrepreneur visa numbers.
    Subparagraph (C) is self-explanatory.
    Subparagraph (D) provides that any immigrant visa issued 
pursuant to this paragraph shall be valid only to apply for 
initial admission to the CNMI. Any employment-based immigrant 
visas issued on the basis of a finding of ``exceptional 
circumstances'' as described in subparagraph (A) above, would 
be valid for admission for lawful permanent residence and 
employment only in the CNMI during the first five years after 
initial admission. Such visas would not authorize permanent 
residence or employment in any other part of the United States 
during this five-year period. The subparagraph also provides 
for the issuance of appropriate documentation of such 
admission, and, consistent with the INA, requires an alien to 
register and report to the Attorney General during the five-
year periods. This five-year condition is intended to prevent 
an alien from union the CNMI-only transition program as a 
loophole to gain employment in another part of the United 
States. Without this condition, such an alien, as a lawful 
permanent resident, would be eligible to work anywhere in the 
United States, thereby avoiding the lengthy (seven years or 
longer) waiting period currently faced by other aliens seeking 
unskilled immigrant worker visas.
    Subparagraph (E) provides that an alien who is subject to 
the five-year limitation under this paragraph may, if he or she 
is otherwise eligible, apply for an immigrant visa or admission 
as a lawful permanent resident on another basis under the INA.
    Subparagraph (F) provides for the removal from the United 
States of any alien subject to the five-year limitation if the 
alien violates the provisions of this paragraph, or if the 
alien is found to be removable or inadmissible under applicable 
provisions of the INA.
    Subparagraph (G) provides the Attorney General with the 
authority to grant a waiver of the five-year limitation in 
certain extraordinary situations where the Attorney General 
finds that the alien would suffer exceptional and extremely 
unusual hardship were such conditions not waived. The benefits 
of this provision would be unavailable to a person who has 
violated the terms and conditions of his or her permanent 
resident status, such as an alien who has engaged in the 
unauthorized employment.
    Subparagraph (H) is self-explanatory.
    Subparagraph (I) provides for five-year extensions, as 
necessary, of the employment-based immigrant visa provisions of 
this paragraph, with respect to workers in the hotel industry. 
The Committee recognizes that the hotel industry plays a 
central role in the economy of the CNMI. Accordingly, this 
provision is designed to ensure that there be a sufficient 
number of workers available to fill positions in the hotel 
industry after the transition period ends. Under this 
subparagraph, the Attorney General and the Secretary of Labor 
are required to consult with the Government of the CNMI during 
the ninth year of the transition program, and at five-year 
intervals thereafter, for the specific purpose of ascertaining 
the current and future needs of the CNMI's hotel industry. If 
the Attorney General and the Secretary of Labor determine, 
after such consultations, that an extension is required, the 
Attorney General will have published in the Federal Register a 
notice extending the provisions of this paragraph for a five-
year period. The Committee intends that the Federal government 
consider sympathetically a request by the Governor of the CNMI 
for extension of this special feature of the transition program 
and resolve any uncertainties in favor of the Northern 
Marianas.
    Subsection (f) is self-explanatory.
    Subsection (g) is self-explanatory.
    Subsection (h) is self-explanatory.
    Subsection (i) is self-explanatory.
    Subsection (j) is self-explanatory.
    Section 2, subsection (b) provides for three conforming 
amendments to the INA.
    Section 2, subsection (c) is self-explanatory.
    Section 2, subsection (d) is self-explanatory.
    Section 2, subsection (e) is self-explanatory.
    Section 2, subsection (f) is self-explanatory.
    Section 2, subsection (g) is self-explanatory.
    Section 2, subsection (h) is self-explanatory.

Sec. 3. Industry committee

    This section extends to the CNMI the provisions of the Fair 
Labor Standards Act for a biennial special industry committee 
as has been applicable to American Samoa since 1956 and limits 
any recommended increase to 50 cents per year.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1275, as reported. The bill is a regulatory 
measure and would impose Government-established standards by 
establishing an industry committee under the Fair Labor 
Standards Act to establish minimum wage levels in the 
Commonwealth of the Northern Mariana Islands.
    The legislation contemplates the possibility of extension 
of the Federal immigrant laws. To the extent that personal 
information is obtained as part of the normal administration of 
the program elsewhere in the United States, the same provisions 
would apply in the Northern Mariana Islands. If the 
Commonwealth administers and enforces an effective immigration 
system under current law and federal law is not extended, it is 
likely that the same information would be obtained. Therefore, 
there would be no additional impact on personal privacy.
    Some additional paperwork would result from the enactment 
of S. 1275, as ordered reported, but the Committee does not 
believe that it would be significant.

                        Executive Communications

    The pertinent communication by the Committee from the 
Department of the Interior setting forth Executive agency 
recommendations relating to S. 1275 is set forth below:

                   U.S. Department of the Interior,
                                   Office of the Secretary,
                                   Washington, DC, October 6, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This is in response to your letter of 
July 16, 1997, requesting a drafting service that would 
implement the Administration's recommendations for the 
Commonwealth of Northern Mariana Islands (CNMI) contained in 
the Administration's July 1997 report on the Federal-CNMI 
Initiative on Labor, Immigration, and Law Enforcement. Pursuant 
to your request, I have enclosed a legislative proposal that 
addresses the recommendations in the Administration's report. 
The Administration strongly supports the enactment of this 
proposal.
    While we are firm in our commitment to the proposals 
outlined in the recommendations, the Administration is, 
however, willing to consider amendments. A Federal policy 
framework is needed to respond to the use of the CNMI as a 
platform for circumvention of United States' garment duties and 
quotas, the CNMI's ineffective immigration control, and the 
unhealthy and unsustainable dependence on temporary low-paid 
foreign workers in the islands.
    President Clinton, in his May 30, 1997 letter to  Governor 
Froilan Tenorio, stated that his Administration would consult 
with the Governor and other representatives of the Commonwealth 
regarding the application of laws to the CNMI. Following 
through on the President's commitment, the Departments of 
Labor, Justice (INS), State, Commerce, and Interior sent senior 
representatives to the CNMI in August to discuss legislative 
implementation of the recommendations contained in the report. 
While the Governor did not meet with this Federal delegation, 
it was able to convey to many local government and business 
leaders the long-standing concerns of the Federal government 
regarding the CNMI's garment and foreign labor policies, 
discuss details of the Administration's recommendations for 
addressing these problems, and hear local concerns regarding 
the recommendations. The information gained on the trip was 
carefully considered. In closing, let me note that the 
Administration looks forward to working with you and the CNMI 
to enact legislation that will reconcile Federal 
responsibilities with the CNMI's needs.
    The Office of Management and Budget advises that there is 
no obligation to the presentation of this proposal to Congress, 
and that its enactment would be in accord with the 
Administration's program.
            Sincerely,
                                          Allen P. Stayman,
                               Director, Office of Insular Affairs.

                  ADDITIONAL VIEWS OF SENATOR BUMPERS

    I was a cosponsor of S. 1100, the first bill that Senator 
Akaka introduced during the 105th Congress to implement reforms 
in the Commonwealth of the Northern Mariana Islands (CNMI). As 
such, I also supported S. 1275 as introduced.
    During consideration of S. 1275, the Committee adopted a 
compromise amendment in the nature of a substitute that 
modifies some provisions of the bill and deletes other 
provisions in their entirety. Overall, the Committee reported 
bill is weaker than the introduced version of S. 1275. While I 
understand the reasons for making the changes, I believe that 
the amendment adopted by the Committee represents the minimum 
Congressional action that must be taken with respect to 
implementing reforms in the CNMI.
    As time passes, the situation in the CNMI continues to 
worsen. Three events have occurred since the Committee's 
hearing on March 31, 1998, that underscore the importance of 
enacting reforms in the CNMI. First, Bangladesh has sent a 
protest to the U.S. State Department expressing official 
concern regarding the treatment of Bangladeshi workers in the 
CNMI (Nepal and Sri Lanka filed similar protests in the recent 
past). Second, local CNMI officials deported two Sri Lankan 
nationals from the CNMI even though the United Nations High 
Commissioner on Refugees contacted the CNMI government 
requesting that they be able to present claims for refugee 
protection. This action was a violation of U.S. international 
treaty obligations. Third, the Chairman of the Saipan Garment 
Manufacturers Association is under investigation following the 
discovery and arrest of 20 illegal alien workers who were 
building this house.
    In addition, I disagree with that portion of the ``Summary 
and Explanation of Committee Amendment'' section of this report 
that characterizes my vote to report S. 1275 as a ``reluctant'' 
step. As the Chairman pointed out during the business meeting, 
``this action that we have taken by reporting out this bill is 
far overdue relative to the inability, because of internal 
pressures within Saipan, to address meaningful reforms 
controlling immigration and wage conditions in that area.'' The 
Chairman also listed the numerous times since 1986 that we have 
expressed concern, either through correspondence or 
legislation, about the situation in the CNMI. It is clear that 
the time has come for Congress to enact meaningful reforms and 
I look forward to the bill's expedient consideration by the 
full Senate.

                                                      Dale Bumpers.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. XXX, as ordered 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):

                          [Public Law 94-241]

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.

           *       *       *       *       *       *       *


    Resolved by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the 
Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America, 
the text of which is as follows, is hereby approved.

           *       *       *       *       *       *       *

    ``Section 503. The following laws of the United States, 
presently inapplicable to the Trust Territory of the Pacific 
Islands, will not apply to the Northern Mariana Islands except 
in the manner and to the extent made applicable to them by the 
Congress by law after termination of the Trusteeship Agreement:
          ``(a) except as otherwise provided in Section 506, 
        the immigration and naturalization laws of the United 
        States;
          ``(b) except as otherwise provided in Subsection (b) 
        of Section 502, the coastwise laws of the United States 
        and any prohibition in the laws of the United States 
        against foreign vessels landing fish or unfinished fish 
        products in the United States; and
          ``(c) the minimum wage provisions of Section 6, Act 
        of June 25, 1938, 52 Stat. 1062, as amended.

           *       *       *       *       *       *       *



                           transition program


    Sec. 6. (a) Attorney General Findings.--
          (1) Minimum standards.--Within ninety days after the 
        date of enactment of the Northern Mariana Islands 
        Covenant Implementation Act, the Attorney General shall 
        determine, and publish by notice in the Federal 
        Register, minimum standards that the Attorney General 
        deems necessary to ensure an effective system of 
        immigration control for the Commonwealth of the 
        Northern Mariana Islands. The determination of such 
        minimum standards shall rest within the sole discretion 
        of the Attorney General, shall not be subject to the 
        rulemaking requirements of the Administrative Procedure 
        Act (5 U.S.C. 533-557), and may be reviewed solely 
        pursuant to paragraph (3) of this subsection.
          (2) Findings.--One year after the date of enactment 
        of the Northern Mariana Islands Covenant Implementation 
        Act, or, if applicable, ninety days after the issuance 
        of a final judicial determination pursuant to paragraph 
        (3), whichever is later, the Attorney General, after 
        consultation with the Government of the Commonwealth of 
        the Northern Mariana Islands, shall made the following 
        findings:
                  (A) whether the Government of the 
                Commonwealth of the Northern Mariana Islands 
                possesses the institutional capability to 
                administer an effective system of immigration 
                control, consistent with the minimum standards 
                established under paragraph (1), and
                  (B) if the Attorney General determines that 
                the Government of the Commonwealth of the 
                Northern Marianas possesses such institutional 
                capability, whether the Government of the 
                Commonwealth of the Northern Mariana Islands 
                has demonstrated a genuine commitment to 
                enforce an effective system of immigration 
                control consistent with the minimum standards 
                established under paragraph (1). The findings 
                by the Attorney General regarding the 
                institutional capability of the Government of 
                the Commonwealth of the Northern Mariana 
                Islands, and if applicable, the genuine 
                commitment of the Government of the 
                Commonwealth of the Northern Mariana Islands to 
                enforce an effective system of immigration 
                control, shall be published in the Federal 
                Register in a timely manner.
          (3) Accelerated judicial review of minimum 
        standards.--Except for review in the Supreme Court of 
        the United States, the United States Court of Appeals 
        for the District of Columbia Circuit shall have 
        original and exclusive jurisdiction over any complaint 
        of the Government of the Commonwealth of the Northern 
        Mariana Islands seeking review of the minimum standards 
        established under paragraph (1). No other person or 
        entity shall have the right to seek review of these 
        minimum standard. For purposes of this paragraph, a 
        petition for review will be deemed to have been timely 
        filed only if it is made within ninety days after 
        publication of the standards in the Federal Register. 
        It shall be the duty of the reviewing court to advance 
        on the docket and to expedite to the greatest possible 
        extent the disposition of any matter brought under this 
        paragraph. In the event that there is issued a final 
        judicial determination invalidating the minimum 
        standards, the Attorney General shall have published in 
        the Federal Register new minimum standards within 
        ninety days of such final judicial determination. Such 
        new minimum standards shall be reviewable solely 
        pursuant to this paragraph.
          (4) Accelerated judicial review of the findings of 
        the attorney general.--The findings of the Attorney 
        General described in subparagraphs (A) and (B) of 
        paragraph (2) shall be deemed to be final upon 
        publication in the Federal Register, unless the 
        Government of the Commonwealth of the Northern Mariana 
        Islands seeks review of these findings by filing a 
        timely petition for review, pursuant to this paragraph, 
        with the United States Court of Appeals for the 
        District of Columbia Circuit. No other person or entity 
        shall have the right to seek review of the findings of 
        the Attorney General. For purposes of this paragraph, a 
        petition for review will be deemed to have been timely 
        filed only if it is made within ninety days of 
        publication of the findings of the Attorney General in 
        the Federal Register. Except for review in the Supreme 
        Court of the United States, the United States Court of 
        Appeals for the District of Columbia Circuit shall have 
        original and exclusive jurisdiction over any review of 
        the findings of the Attorney General. It shall be the 
        duty of the reviewing court to advance on the docket 
        and to expedite to the greatest possible extent the 
        disposition of any matter brought under this paragraph. 
        In the event that there is issued a final judicial 
        determination upholding the findings of the Attorney 
        General, then the provisions of subsections (b) through 
        (j) shall take effect 180 days after the date of such a 
        final judicial determination. In the event that there 
        is a final judicial determination invalidating the 
        findings of the Attorney General, subject to 
        subparagraph (6), then the provisions of subsections 
        (b) through (j) shall not take effect. Nothing in this 
        paragraph shall limit the authority of the Attorney 
        General to make new findings pursuant to paragraph 
        (2)(B) at any time after such a final judicial 
        determination.
          (5) Effective date.--Subject to paragraphs (4) and 
        (6), if the Attorney General finds either that the 
        Commonwealth of the Northern Mariana Islands does not 
        have the institutional capability to meet the minimum 
        standards described in paragraph (2)(A) or has not 
        demonstrated a genuine commitment to enforce an 
        effective system of immigration control consistent with 
        the minimum standards required in paragraph (2)(b), 
        then subsections (b) through (j) shall take effect 180 
        days after the finding is published. If the Attorney 
        General determines that the Government of the 
        Commonwealth of the Northern Mariana Islands has such 
        institutional capability and genuine commitment, 
        subject to paragraph (6), then the provisions of 
        subsections (b) through (j) shall not take effect.
          (6) Subsequent findings.--If the Attorney General 
        finds that the Government of the Commonwealth of the 
        Northern Mariana Islands meets the requirements of 
        subparagraphs (A) and (B) of paragraph (2), the 
        Attorney General, every three years thereafter, shall 
        make findings with respect to whether the Government of 
        the Commonwealth of the Northern Mariana Islands 
        continues to meet the requirements of such 
        subparagraphs. The subsequent findings of the Attorney 
        General shall be reviewable solely pursuant to 
        paragraph (4).
    (b) Application of the Immigration and Nationality Act and 
Establishment of a Transition Program.--Except as provided in 
subsection (c), the provisions of the Immigration and 
Nationality Act (8 U.S.C. 1101) shall apply to the Commonwealth 
of the Northern Mariana Islands: Provided That there shall be a 
transition period not to exceed ten years following the 
effective date of the provisions of subsections (b) through (j) 
of this section (except for subsection (e)(2)(1), if needed), 
during which the Attorney General, in consultation with the 
Secretaries of State, Labor, and the Interior, shall establish, 
administer, and enforce a transition program for immigration to 
the Commonwealth of the Northern Mariana Islands (the 
``transition program''). The transition program established 
pursuant to this section shall provide for the issuance of 
nonimmigrant temporary alien worker visas pursuant to 
subsection (d), and, under the circumstances set forth in 
subsection (e), for family-sponsored and employment-based 
immigrant visas. The transition program shall be implemented 
pursuant to regulations to be promulgated as appropriate by 
each agency having responsibilities under the transition 
program.
    (c) Exemption From Numerical Limitations for H-2B Temporary 
Workers.--An alien, if otherwise qualified, may seek admission 
to the Commonwealth of Northern Mariana Islands as a temporary 
worker under section 101(a)(15)(H)(ii)(B) of the Immigration 
and Natural Act (8 U.S.C. 1101(a)(15)(H)(ii)(B)) without regard 
to the numerical limitation set forth in section 214(g) of such 
Act (8 U.S.C. 1184(g)).
    (d) Temporary Alien Workers.--The transition program shall 
conform to the following requirements with respect to temporary 
alien workers who would otherwise not be eligible for 
nonimmigrant classification under the Immigration and National 
Act:
          (1) Aliens admitted under this subsection shall have 
        the same privileges as nonimmigrants under section 
        101(a)(15) of the Immigration and Nationality Act (8 
        U.S.C. 1258), including the ability to apply, if 
        otherwise eligible, for a change of nonimmigrant status 
        under section 248 of such Act (8 U.S.C. 1258), or 
        adjustment of status, if eligible therefor, under this 
        section and section 245(e) of such Act (8 U.S.C. 
        1255(e)).
          (2)(A) The Secretary of Labor shall establish, 
        administer, and enforce a system for allocating and 
        determining the number, terms, and conditions of 
        permits to be issued to prospective employers for each 
        temporary alien worker who would not otherwise be 
        eligible for admission under the Immigration and 
        Nationality Act. This system shall provide for a 
        reduction in the allocation of permits for such workers 
        on an annual basis, to zero, over a period not to 
        exceed ten years. In no event shall a permit be valid 
        beyond the expiration of the transition period. This 
        system may be based on any reasonable method and 
        criteria determined by the Secretary of Labor to 
        promote the maximum use of, and to prevent adverse 
        effects on wages and working conditions of, persons 
        authorized to work in the United States under section 
        274A of the Immigration and Nationality Act (8 U.S.C. 
        1324a), and lawfully admissible freely associated state 
        citizen labor.
          (B) The Secretary of Labor is authorized to establish 
        and collect appropriate user fees for the purpose of 
        this section. Amounts collected pursuant to this 
        section shall be deposited in a special fund of the 
        Treasury. Such amounts shall be available, to the 
        extent and in the amounts as provided in advance in 
        appropriations acts, for the purposes of administering 
        this section. Such amounts are authorized to be 
        appropriated to remain available until expended.
          (3) The Attorney General shall set the conditions for 
        admission of nonimmigrant temporary alien workers under 
        the transition program, and the Secretary of State 
        shall authorize the issuance of nonimmigrant visas for 
        aliens to engage in employment only as authorized in 
        this subsection: Provided, That such visas shall not be 
        valid for admission to the United States, as defined in 
        section 101(a)(38) of the Immigration and Nationality 
        Act (8 U.S.C. 1101(a)(38)), except the Commonwealth of 
        Northern Mariana Islands on the basis of such a 
        nonimmigrant visa shall be permitted to engage in 
        employment only as authorized pursuant to the 
        transition program. No alien shall be granted 
        nonimmigrant classification or a visa under this 
        subsection unless the permit requirements established 
        under paragraph (2) have been met.
          (4) An alien admitted as a nonimmigrant pursuant to 
        this subsection shall be permitted to transfer between 
        employers in the Commonwealth of Northern Mariana 
        Islands during the period of such alien's authorized 
        stay therein to the extent that such transfer is 
        authorized by the Attorney General in accordance with 
        criteria established by the Attorney General and the 
        Secretary of Labor.
          (e) Immigrants.--With the except of immediate 
        relatives (as defined in section 201(b)(2) of the 
        Immigration and Nationality Act (8 U.S.C. 1151(b)(2))) 
        and, except as provided in paragraphs (1) and (2), no 
        alien shall be granted initial admission as a lawful 
        permanent resident of the United States at a port-of-
        entry in the Commonwealth of Northern Mariana Islands, 
        or at a port-of-entry in Guam for the purpose of 
        immigrating to the Commonwealth of Northern Mariana 
        Islands.
          (1) Family-sponsored immigrant visas--The Attorney 
        General, based on a joint recommendation of the 
        Governor and Legislature of the Commonwealth of 
        Northern Mariana Islands, and in consultation with 
        appropriate federal agencies, may establish a specific 
        number of additional initial admissions as a family-
        sponsored immigrant at a port-of-entry in the 
        Commonwealth of Northern Mariana Islands, or at a port-
        of-entry in Guam for the purpose of immigrating to the 
        Commonwealth of Northern Mariana Islands, pursuant to 
        sections 202 and 203(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1152 and 1153(a)) during the 
        following fiscal year.
          (2) Employment-based immigrant visas.--
                  (A) If the Secretary of Labor, upon receipt 
                of a joint recommendation of the Governor and 
                Legislature of the Commonwealth of Northern 
                Mariana Islands, finds that exceptional 
                circumstances exist with respect to the 
                inability of employers in the Commonwealth of 
                Northern Mariana Islands to obtain sufficient 
                work-authorized labor, the Attorney General may 
                establish a specific number of employment-based 
                immigrant visas to be made available during the 
                following fiscal year under section 203(b) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1153(b)).
                  (B) Upon notification by the Attorney General 
                that a number has been established pursuant to 
                subparagraph (A), the Secretary of State may 
                allocate up to that number of visas without 
                regard to the numerical limitations set forth 
                in sections 202 and 203(b)(3)(B) of the 
                Immigration and Nationality Act (8 U.S.C. 1152 
                and 1153(b)(3)(B)). Visa numbersallocated under 
this subparagraph shall be allocated first from the number of visas 
available under section 203(b)(3) of such Act (8 U.S.C. 1153(b)(3)), 
or, if such visa numbers are not available, from the number of visas 
available under section 203(b)(5) of such Act (8 U.S.C. 1153(b)(5)).
                  (C) Persons granted employment-based 
                immigrant visas under the transition program 
                may be admitted initially at a port-of-entry in 
                the Commonwealth of the Northern Mariana 
                Islands, or at a port-of-entry in Guam for the 
                purpose of immigrating to the Commonwealth of 
                the Northern Mariana Islands, as lawful 
                permanent residents of the United States.
                  (D) Any immigrant visa issued pursuant to 
                this paragraph shall be valid only for 
                application for initial admission to the 
                Commonwealth of the Northern Mariana Islands. 
                The admission of any alien pursuant to such an 
                immigrant visa shall be an admission for lawful 
                permanent residence and employment only in the 
                Commonwealth of the Northern Mariana Islands 
                during the first five years after such 
                admission. Such admission shall not authorize 
                permanent residence or employment in any other 
                part of the United States during such five-year 
                period. An alien admitted for permanent 
                residence pursuant to this paragraph shall be 
                issued appropriate documentation identifying 
                the person as having been admitted pursuant to 
                the terms and conditions of this transition 
                program, and shall be required to comply with a 
                system for the registration and reporting of 
                aliens admitted for permanent residence under 
                the transition program, to be established by 
                the Attorney General, by regulation, consistent 
                with the Attorney General's authority under 
                Chapter 7 of Title II of the Immigration and 
                Nationality Act (8 U.S.C. 1301-1306).
                  (E) Nothing in this paragraph shall preclude 
                an alien who has obtained lawful permanent 
                resident status pursuant to this paragraph from 
                applying, if otherwise eligible under this 
                section and under the Immigration and 
                Nationality for an immigrant visa or admission 
                as a lawful permanent resident under the 
                Immigration and Nationality Act.
                  (F) Any alien admitted under this subsection, 
                who violates the provisions of this paragraph, 
                or who is found removable or inadmissible under 
                section 237(a) (8 U.S.C. 1227(a)), or 
                paragraphs (1), (2), (3), (4)(A), (4)(B), (6), 
                (7), (8), or (9) or section 212(a) (8 U.S.C. 
                1182(a)), shall be removed from the United 
                States pursuant to sections 239, 240, and 241 
                of the Immigration and Nationality Act (8 
                U.S.C. 1229, 1230, and 1231).
                  (G) The Attorney General may establish by 
                regulation a procedure by which an alien who 
                has obtained lawful permanent resident status 
                pursuant to this paragraph may apply for a 
                waiver of the limitations on the terms and 
                conditions of such status. The Attorney General 
                may grant the application for waiver, in the 
                discretion of the Attorney General, if--
                          (i) the alien is not in removal 
                        proceedings,
                          (ii) the alien has been a person of 
                        good moral character for the preceding 
                        five years,
                          (iii) the alien has not violated the 
                        terms and conditions of the alien's 
                        permanent resident status, and
                          (iv) the alien would suffer 
                        exceptional and extremely unusual 
                        hardship were such terms and conditions 
                        not waived.
                  (H) The limitations on the terms and 
                conditions of an alien's permanent residence 
                set forth in this paragraph shall expire at the 
                end of five years after the alien's admission 
                to the Commonwealth of the Northern Mariana 
                Islands as a permanent resident and the alien 
                is thereafter fully subject to the provisions 
                of the Immigration and Nationality Act. 
                Following the expiration of such limitations, 
                the permanent resident alien may engage in any 
                lawful activity, including employment, anywhere 
                in the United States. Such an alien, if 
                otherwise eligible for naturalization, may 
                count the five-year period in the Commonwealth 
                of the Northern Mariana Islands towards time in 
                the United States for purposes of meeting the 
                residence requirements of Title III of the 
                Immigration and Nationality Act.
                  (I) Special provision to ensure adequate 
                employment in the hotel industry after the 
                transition period ends.--During the fiscal year 
                preceding the ninth anniversary of the 
                effective date of this subsection, and in the 
                fourth year of any extension thereafter, the 
                Attorney General and the Secretary of Labor 
                shall consult with the Governor of the 
                Commonwealth of the Northern Mariana Islands to 
                ascertain the current and future labor needs of 
                the hotel industry in the Commonwealth of the 
                Northern Mariana Islands, and to determine 
                whether a five-year extension of the provisions 
                of this paragraph would be necessary to ensure 
                an adequate number of workers in the hotel 
                industry. If the Attorney General and Secretary 
                of Labor determine that such an extension is 
                necessary to ensure an adequate number of 
                workers in the hotel industry, the Attorney 
                General shall provide notice by publication in 
                the Federal Register that the provisions of 
                this paragraph will be extended for a five-year 
                period with respect to the hotel industry only. 
                The Attorney General may authorize further 
                extensions of this paragraph with respect to 
                the hotel industry in the Commonwealth of the 
                Northern Mariana Islands if, after the Attorney 
                General and the Secretary of Labor have 
                consulted with the Governor of the Commonwealth 
                of the Northern Mariana Islands, the Attorney 
                General determines that a further extension is 
                required to ensure an adequate number of 
                workers in the hotel industry in the 
                Commonwealth of the Northern Mariana Islands.
    (f) Investor visas.--The following requirements shall apply 
to aliens whohave been admitted to the Commonwealth of the 
Northern Mariana Islands in long-term investor status under the 
immigration laws of the Commonwealth of the Northern Mariana Islands on 
or before the effective date of the Northern Mariana Islands Covenant 
Implementation Act and who have continuously maintained residence in 
the Commonwealth of the Northern Mariana Islands pursuant to such 
status:
          (1) Such aliens may apply to the Attorney General or 
        a consular officer for classification as a nonimmigrant 
        under the transition program. Any nonimmigrant status 
        granted as a result of such application shall terminate 
        not later than December 31, 2008.
          (2) During the six-month period beginning January 1, 
        2008, and ending June 30, 2008, any alien granted 
        nonimmigrant status pursuant to paragraph (1) shall be 
        permitted to apply to the Attorney General for status 
        as a lawful permanent resident of the United States 
        effective on or after January 1, 2009, and may be 
        granted such status if otherwise admissible. Upon 
        granting permanent residence to any such alien, the 
        Attorney General shall advise the Secretary of State 
        who shall reduce by one number, during the fiscal year 
        in which the grant of status becomes effective, the 
        total number of immigrant visas available to natives of 
        the country of the alien's chargeability under section 
        202(b) of the Immigration and Nationality Act (8 U.S.C. 
        1152(b)).
    (g) Persons Lawfully Admitted Under the Commonwealth of the 
Northern Mariana Islands Immigration Law.--Notwithstanding 
subsection (d) of this section, persons who would have been 
lawfully present in the Commonwealth of the Northern Mariana 
Islands pursuant to the immigration laws of the Commonwealth of 
the Northern Mariana Islands on the effective date of this 
subsection, shall be permitted to remain in the Commonwealth of 
the Northern Mariana Islands for the completion of the period 
of admission under such laws, or for two years, whichever is 
less.
    (h) Travel Restrictions for Certain Applicants for 
Asylum.--Any alien admitted to the Commonwealth of the Northern 
Mariana Islands pursuant to the immigration laws of the 
Commonwealth of the Northern Mariana Islands or pursuant to 
subsections (d) or (e) of this section who files an application 
seeking asylum in the United States shall be required, pursuant 
to regulations established by the Attorney General, to remain 
in the Commonwealth of the Northern Mariana Islands, during the 
period of time the application is being adjudicated or during 
any appeals filed subsequent to such adjudication. An applicant 
for asylum who, during the time his application is being 
adjudicated or during any appeals filed subsequent to such 
adjudication, leaves the Commonwealth of the Northern Mariana 
Islands of his own will without prior authorization by the 
Attorney General thereby abandons the application.
    (i) Effect on Other Laws.--The provisions of this section 
and the Immigration and Nationality Act, as amended by the 
Northern Mariana Islands Covenant Implementation Act, shall 
supersede and replace all laws, provisions, or programs of the 
Commonwealth of the Northern Mariana Islands relating to the 
admission of aliens and the removal of aliens from the 
Commonwealth of the Northern Mariana Islands.
    (j) Accrual of Time for Purposes of Section 212(A)(9)(B) of 
the Immigration and Nationality Act.--No time that an alien was 
present in violation of the laws of the Commonwealth of the 
Northern Mariana Islands shall be counted for purposes of the 
ground of inadmissibility in section 212(a)(9)(B) of the 
Immigration and Nationality Act (8 U.S.C. 1182(a)(9)(B)) prior 
to the date of enactment of this subsection.
                              ----------                              


                     [Public Law 414-June 27, 1952]

AN ACT To revise the laws relating to immigration, naturalization, and 
nationality; and for other purposes

           *       *       *       *       *       *       *


    Sec. 101. (a) * * *

           *       *       *       *       *       *       *

    (36) The term ``State'' includes the District of Columbia, 
Puerto Rico, Guam, [and the Virgin Islands of the United 
States.] the Virgin Islands of the United States, and the 
Commonwealth of the Northern Mariana Islands.

           *       *       *       *       *       *       *

    (38) The term ``United States'', except as otherwise 
specifically herein provided, when used in a geographical 
sense, means the continental United States, Alaska, Hawaii, 
Puerto Rico, Guam, [and the Virgin Islands of the United 
States.] the Virgin Islands of the United States, and the 
Commonwealth of the Northern Mariana Islands.

           *       *       *       *       *       *       *

    (l) Guam; Waiver of Requirements for Nonimmigrant Visitors; 
Conditions of Waiver; Acceptance of Funds From Guam.--
          (1) The requirement of paragraph (7)(B)(i) of 
        subsection (a) of this section may be waived by the 
        Attorney General, the Secretary of State, and the 
        Secretary of the Interior, acting jointly, in the case 
        of an alien applying for admission as a nonimmigrant 
        visitor for business or pleasure and solely for entry 
        into and [stay on Guam] stay on Guam and the 
        Commonwealth of the Northern Mariana Islands for a 
        period not to exceed a total of fifteen days, if the 
        Attorney General, the Secretary of the State and the 
        Secretary of the Interior, [after consultation with the 
        Governor of Guam,] after respective consultation with 
        the Governor of Guam or the Governor of the 
        Commonwealth of the Northern Mariana Islands, jointly 
        determine that--
                  (A) an adequate arrival and departure control 
                system has been developed [on Guam,] on Guam or 
                the Commonwealth of the Northern Mariana 
                Islands, respectively, and
                  (B) such as waiver does not represent a 
                threat to the welfare, safety, or security of 
                the United States or its territories and 
                commonwealths.
          (2) An alien may not be provided a waiver under the 
        this subsection unless the alien has waived any right--
                  (A) to review or appeal under this Act of an 
                immigration officer's determination as to the 
                admissibility of the alien at the port of entry 
                [into Guam,] into Guam or the Commonwealth of 
                the Northern Mariana Islands, respectively, or
                  (B)-- to contest, other than on the basis of 
                an application for asylum, any action for 
                removal of the alien.
          (3) If adequate appropriated funds to carry out this 
        subsection are not otherwise available, the Attorney 
        General is authorized to accept from the [Government of 
        Guam] Government of Guam or the Government of 
        Commonwealth of the Northern Mariana Islands such funds 
        as may be tendered to cover all or any part of the cost 
        of administration and enforcement of this subsection.
                              ----------                              


                 [PUBLIC LAWS--CH. 676--JUNE 25, 1938]

  AN ACT To provide for the establishment of fair labor standards in 
    employments in and affecting interstate commerce, and for other 
                                purposes

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Fair Labor Standards Act of 1938''.

           *       *       *       *       *       *       *

    Sec. 5. (a) The Secretary of Labor shall as soon as 
practicable appoint a special industry committee to recommend 
the minimum rate or rates of wages to be paid under section 6 
to employees in American Samoa or the Northern Mariana Islands, 
respectively, engaged in commerce or in the production of goods 
for commerce or employed in any enterprise engaged in commerce 
or in the production of goods for commerce, or the Secretary 
may appoint separate industry committees to recommend the 
minimum rate or rates of wages to be paid under section 6 to 
employees therein engaged in commerce or in the production of 
goods for commerce or employed in any enterprise engaged in 
commerce or in the production of goods for commerce in 
particular industries. An industry committee appointed under 
this subsection shall be composed of residents of American 
Samoa or the Northern Mariana Islands, respectively,  where the 
employees with respect to whom such committee was appointed are 
employed and residents of the United States outside of American 
Samoa or the Northern Mariana Islands, respectively. In 
determining the minimum rate or rates of wages to be paid, and 
in determining the minimum rate or rates of wages to be paid, 
and in determining classifications, such industry committees 
shall be subject to the provisions of section 8.

           *       *       *       *       *       *       *

    Sec. 6. * * *

           *       *       *       *       *       *       *

          (3) if such employee is employed in American Samoa, 
        or the Northern Mariana Islands, in lieu of the rate or 
        rates provided by this subsection or subsection (b), 
        not less than the applicable rate established by the 
        Secretary of Labor in accordance with recommendations 
        of a special industry committee or committees which he 
        shall appoint pursuant to sections 5 and 8. The minimum 
        wage rate thus established shall not exceed the rate 
        prescribed in paragraph (1) of this subsection, except 
        that, in the case of the Northern Mariana Islands, the 
        rate shall not be raised more than fifty cents per 
        year;

           *       *       *       *       *       *       *

    Sec. 8. (a) The policy of this Act with respect to 
industries or enterprises in American Samoa, or the Northern 
Mariana Islands, respectively, engaged in commerce or in the 
production of goods for commerce is to reach as rapidly as is 
economically feasible without substantially curtailing 
employment the objective of the minimum wage rate which would 
apply in each such industry under paragraph (1) or (5) of 
section 6(a) but for section 6(c).
    The Secretary of Labor shall from time to time convene an 
industry committee or committees, appointed pursuant to section 
5, and any such industry committee shall from time to time 
recommend the minimum rate or rates of wages to be paid under 
section 6 by employers in American Samoa, or the Northern 
Mariana Islands, respectively, engaged in commerce or in the 
production of goods for commerce or in any enterprise engaged 
in commerce or in the production of goods for commerce in any 
such industry or classification therein, and who but for 
section 6(a)(3) would be subject to the minimum wage 
requirements of section 6(a)(1). Minimum rates of wages 
established in accordance with this section which are not equal 
to the otherwise applicable minimum wage rate in effect under 
paragraph (1) or (5) or section 6(a) shall be reviewed by such 
a committee once during each biennial period, beginning with 
the biennial period commencing July 1, 1958, except that the 
Secretary, in his discretion, may order an additional review 
during any such biennial period.
    (b) Upon the convening of any such industry committee, the 
Secretary shall refer to it the question of the minimum wage 
rate or rates to be fixed for such industry. The industry 
committee shall investigate conditions in the industry and the 
committee, or any authorized subcommittee thereof, shall after 
due notice hear such witnesses and receive such evidence as may 
be necessary or appropriate to enable the committee to perform 
its duties and functions under this Act. The committee shall 
recommend to the Secretary the highest minimum wage rates for 
the industry which it determines, having due regard to economic 
and competitive conditions, will not substantially curtail 
employment in the industry, and will not give any industry in 
American Samoa, or the Northern Mariana Islands, respectively, 
a competitive advantage over any industry in the United States 
outside American Samoa, or the Northern Mariana Islands, 
respectively; except that the committee shall recommend to the 
Secretary the minimum wage rate prescribed in section 6(a) or 
6(b), which would be applicable but for section 6(a)(3), unless 
there is evidence in the record which establishes that the 
industry, or a predominant portion thereof, is unable to pay 
that wage due to such economic and competitive conditions.

           *       *       *       *       *       *       *

    (f) The provisions of sections 6, 7, 11, 12, shall not 
apply with respect to any employee whose services during the 
workweek are performed in a workplace within a foreign country 
or within territory under the jurisdiction of the United States 
other than the following: a State of the United States; the 
District of Columbia; Puerto Rico; the Virgin Islands; Outer 
Continental Shelf Lands Act (ch. 345, 67 Stat. 462); American 
Samoa; the Northern Mariana Islands; Guam; Wake Island; 
Eniwetok Atoll, Kwajalein Atoll; and Johnston Island.

                                
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