[Senate Report 114-311]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 583
114th Congress       }                                  {       Report
                                 SENATE
 2d Session          }                                  {     114-311

======================================================================



 
                    OMNIBUS TERRITORIES ACT OF 2015

                                _______
                                

                August 30, 2016.--Ordered to be printed

   Filed, under authority of the order of the Senate of July 14, 2016

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2360]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 2360) to improve the administration of 
certain programs in the insular areas, 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:
    Beginning on page 1, strike line 6 and all that follows 
through page 2, line 17 and insert the following:

SEC. 2. RESETTLEMENT AND RELOCATION FOR THE PEOPLE OF BIKINI.

    The matter under the heading ``TRUST TERRITORY OF THE PACIFIC 
ISLANDS'' under the heading ``Office of Territorial Affairs'' under the 
heading ``DEPARTMENT OF THE INTERIOR'' in chapter VIII of title I of 
the Supplemental Appropriations Act, 1982 (Public Law 97-257; 96 Stat. 
840), is amended by striking the first proviso and inserting 
``Provided, That such funds, including funds provided pursuant to the 
Department of the Interior and Related Agencies Appropriations Act, 
1989 (Public Law 100-446; 102 Stat. 1774), shall be available for the 
relocation and resettlement of the Bikini people living on Kili and 
Ejit Islands, on the condition that the Secretary of the Interior 
submits to the Committee on Energy and Natural Resources of the Senate 
and the Committee on Natural Resources of the House of Representatives 
a resettlement plan developed in coordination with the Bikini Atoll 
leadership: Provided further, That for any fiscal year, annual 
expenditures from the Resettlement Fund established by this section and 
pursuant to the Department of the Interior and Related Agencies 
Appropriations Act, 1989 (Public Law 100-446; 102 Stat. 1774) may not 
exceed an amount that is greater than 90 percent of the average annual 
earnings of the Fund for the preceding 5 years unless for resettlement 
purposes outside of the Marshall Islands:''.

SEC. 3. RELIABLE AIR SERVICE IN AMERICAN SAMOA.

    Section 40109(g) of title 49, United States Code, is amended--
          (1) in paragraph (2), by striking subparagraph (C) and 
        inserting the following:
                  ``(C) review the exemption at least every 30 days 
                (or, in the case of exemptions that are necessary to 
                provide and sustain air transportation in American 
                Samoa between the islands of Tutuila and Manu'a, at 
                least every 180 days), to ensure that the unusual 
                circumstances that established the need for the 
                exemption still exist.''; and
          (2) by striking paragraph (3) and inserting the following:
          ``(3) Renewal Of Exemptions.--
                  ``(A) In General.--Except as provided in subparagraph 
                (B), the Secretary may renew an exemption (including 
                renewals) under this subsection for not more than 30 
                days.
                  ``(B) Exception.--An exemption that is necessary to 
                provide and sustain air transportation in American 
                Samoa between the islands of Tutuila and Manu'a, may be 
                renewed for not more than 180 days.
          ``(4) Continuation of Exemptions.--An exemption may continue 
        for not more than 5 days after the unusual circumstances that 
        established the need for the exemption cease.''.

                                Purpose

    The purpose of S. 2360 is to improve the administration of 
certain programs in the insular areas.

                          Background and Need

    The sovereignty of the United States extends to various 
insular areas, including the Commonwealth of Puerto Rico, the 
United States Virgin Islands, American Samoa, Guam, and the 
Commonwealth of the Northern Mariana Islands. Congress has 
extended U.S. citizenship to people born in these insular 
areas, except for American Samoa. People born in American Samoa 
are non-citizen nationals of the United States. Congress has 
the authority to ``make all needful Rules and Regulations 
respecting the Territory or other Property belonging to the 
United States. . . .'' (Article IV, section 3, clause 2, of the 
Constitution).
    In addition, the United States has entered into Compacts of 
Free Association with the self-governing, sovereign Republic of 
Palau, the Federated States of Micronesia, and the Republic of 
the Marshall Islands, which are collectively referred to as the 
Freely Associated States (FAS). The FAS were part of the former 
United Nations Trust Territory of the Pacific Islands, which 
was administered by the United States from 1947 to 1994.

Bikini Atoll Resettlement

    As a result of nuclear weapons testing by the United States 
in the northern atolls of the Marshall Islands, Congress, 
through Public Law 97-257 in 1982, provided the people of 
Bikini Atoll a relocation and resettlement trust fund of $19.6 
million to resettle from their traditional homeland of Bikini 
Atoll to other islands within the Marshall Islands. The purpose 
of the trust fund was expanded with the enactment of a Compact 
of Free Association (Compact) in 1986, Public Law 99-239. 
Section 103(l) of the Compact authorized funding to restore 
Bikini Atoll to habitability and an additional $90 million was 
subsequently appropriated. Currently, the islands of Kili and 
Ejit serve as the official resettlement locations for the 
people of Bikini Atoll. Today, however, the people on these 
islands have limited living space, lack suitable sustainable 
resources to provide water and food for their population, and 
they are exposed to tidal flooding on an increasingly frequent 
basis. Pursuant to section 141 of the Compact, citizens of the 
FAS, including the people of Bikini, are permitted to enter 
into the United States to lawfully engage in occupations and 
establish residence as nonimmigrants. Because of the 
deteriorating living conditions on Kili and Ejit, the Bikini 
community has requested that they be allowed to use the trust 
fund to resettle outside of the Marshall Islands, including in 
the United States.

American Samoa Air Service

    There are currently no U.S. airlines that provide flight 
service within American Samoa between the islands of Tutuila 
and Manu'a. The U.S. Department of Transportation has granted a 
foreign air carrier emergency service capability to provide 
this service, but that designation must be renewed every 30 
days under statutory requirement.

REAL ID and FAS citizens

    Section 141 of the Compact of Free Association Amendments 
Act of 2003 (Public Law 108-188) and the law that implemented 
the Compact of Free Association with Palau (Public Law 101-219) 
permits citizens of the FAS to enter into the United States to 
lawfully engage in occupations and establish residence as 
nonimmigrants. However, the REAL ID Act of 2005 (Public Law 
109-13) did not provide a means for FAS citizens to document 
their lawful status in the United States in order to obtain a 
driver's license or identification card. As a consequence, FAS 
citizens are denied anything more than a temporary ID valid 
only for one year, resulting in practical difficulties in their 
ability to maintain employment and engage in other lawful 
activities where they reside. On November 13, 2013, the 
Ambassadors to the United States from the FAS wrote to the 
Committee requesting that a provision be passed that would 
amend the REAL ID Act to clarify that citizens of the FAS who 
reside lawfully in the United States are able to obtain a 
driver's license or state identification card under the REAL ID 
Act.

                          Legislative History

    S. 2360 was introduced by Senators Murkowski and Cantwell 
on December 7, 2015. Section 2 (Bikini Atoll) and section 3 
(American Samoa air service) were included at the request of 
the Administration. Section 4 (REAL ID) was previously included 
in S. 1237 at the request of the Ambassadors to the United 
States from the FAS. The Committee held a hearing on S. 2360 on 
April 5, 2016.
    In the 113th Congress, S. 1237, the Omnibus Territories Act 
of 2013, was introduced by Senators Wyden and Murkowski on June 
27, 2013. The Committee held a hearing on the bill on July 11, 
2013, and ordered the bill favorably reported, as amended, on 
December 19, 2013. The full Senate unanimously passed S. 1237, 
with an amendment, on June 18, 2014. The House took no further 
action on the measure.
    The Committee on Energy and Natural Resources met in open 
business session on July 13, 2016, and ordered S. 2360 
favorably reported, as amended.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 13, 2016, by a majority voice 
vote of a quorum present, recommends that the Senate pass S. 
2360, if amended as described herein.

                          Committee Amendment

    During its consideration of S. 2360, the Committee adopted 
an amendment to section 2, regarding the Bikini Atoll 
Resettlement, and section 3, regarding American Samoa Air 
Service.
    The amendment revises the use of the Bikini Atoll 
Resettlement Fund and limits expenditures from that Fund. The 
amendment also revises the length of an exemption that a 
foreign carrier may receive to provide commercial air 
transportation in American Samoa between the islands of Tutuila 
and Manu'a.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides a short title, the ``Omnibus Territories 
Act of 2016.''

Section 2. Resettlement and relocation for the people of Bikini

    Section 2 amends the first proviso of the heading ``Trust 
Territory of the Pacific Islands'' under the heading ``Office 
of Territorial Affairs'' under the heading ``Department of the 
Interior'' in chapter VIII of title I of the Supplemental 
Appropriations Act, 1982 (Public Law 97-257; 96 Stat. 840) to 
strike the restriction on the use of resettlement fund money 
and allow the people of Bikini Atoll to use their Resettlement 
Fund outside of the Marshall Islands. The section limits who is 
eligible to utilize Fund monies to the Bikini people who live 
on Kili and Ejit Islands. The funds are made available for the 
relocation and resettlement of these two communities subject to 
the Secretary of the Interior submitting to the Committee on 
Energy and Natural Resources of the Senate and the Committee on 
Natural Resources of the House of Representatives a 
resettlement plan developed in coordination with the Bikini 
Atoll leadership. The section limits annual expenditures from 
the Resettlement Fund to not more than 90 percent of the 
average annual earnings of the Fund for the preceding five 
years unless for resettlement purposes outside of the Marshall 
Islands.

Section 3. Reliable air service in American Samoa

    Section 3 amends section 40109(g) of title 49, United 
States Code to allow a foreign air carrier operating between 
the American Samoa islands of Tutuila and Manu'a to renew an 
emergency air transportation exemption every 180 days. Current 
law requires a foreign air carrier to renew an exemption every 
30 days.

Section 4. Drivers' licenses and personal identification cards

    Section 4 amends sections 201(5) and 202(c)(2)(B) of the 
REAL ID Act of 2005 (49 U.S.C. 30301 note; Public Law 109-13) 
to clarify that citizens of the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Republic 
of Palau who have been admitted to the United States as 
nonimmigrants pursuant to a Compact of Free Association, are 
eligible for driver's licenses or personal identification cards 
under the REAL ID Act.

                   Cost and Budgetary Considerations

    The Congressional Budget Estimate of the costs of this 
measure has been requested but was not received at the time the 
report was filed. When the Congressional Budget Office 
completes its cost estimate, it will be posted on the internet 
at www.cbo.gov.

                      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. 2360. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Additional paperwork would be required by the Federal 
Government from the enactment of S. 2360. Section 2 would 
require additional paperwork because it requires the Secretary 
of the Interior to submit a resettlement plan to the Committee 
on Energy and Natural Resources of the Senate and the Committee 
on Natural Resources of the House of Representatives.

                   Congressionally Directed Spending

    S. 2360, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the April 5, 2016, hearing on S. 2360 follows:

 Statement of Esther P. Kia'Aina Assistant Secretary for Insular Areas 
                       Department of the Interior

    Chairman Murkowski and Members of the Committee on Energy 
and Natural Resources, thank you for the opportunity to testify 
on S. 2360, the Omnibus Territories Act of 2015, and S. 2610, 
legislation to implement the 2010 agreement between the United 
States and the Republic of Palau.


                   s. 2360--omnibus territories bill


    The Administration supports S. 2360 with its provisions for 
broadening Bikini resettlement options, promoting reliable air 
transportation services within American Samoa, and amending the 
Real ID Act to ensure drivers' licenses and personal 
identification cards remain available for the citizens of the 
three freely associated states.
Relocation and resettlement for the people of Bikini
    Section 2 of the bill would lift the statutory limitation 
on the use of resettlement funds for the people of Bikini. 
Eliminating this restriction would allow the people of Bikini 
to resettle outside of the Republic of the Marshall Islands, 
giving them more relocation options and improving their quality 
of life. There is an immediate need for this option given 
recent extreme weather events, which have threatened the health 
and safety of the people of Bikini.
    The United States is committed to ensuring adequate 
resettlement opportunities for the people of Bikini. From June 
1946 through August 1958, the United States conducted nuclear 
weapons testing in the northern islands and atolls of the 
Marshall Islands. In advance of the testing, the people of 
Bikini Atoll were forced to relocate several times before 
finally staying on Ejit Island in Majuro Atoll and Kili Island. 
In 1982, Congress, provided funds (Public Law 97-257) for a 
relocation and resettlement trust fund that could be used by 
the people of Bikini in the Marshall Islands, primarily on Kili 
and Ejit Islands.
    Bikini Atoll has 23 islands and a lagoon of 243 square 
miles, which provided essential sheltered fishing grounds for 
the people of Bikini. In contrast, Kili is a single island 
sheltering 800 people of Bikini on approximately 0.36 square 
miles. Since Kili is not a part of any atoll or sheltering 
lagoon, it also does not provide much needed sheltered fishing 
grounds to sustain its residents. While Ejit Island is part of 
Majuro Atoll, it too provides less than one square mile of 
living space for the 300 people who live on Ejit.
    The people of Bikini living on both Kili and Ejit Islands 
have been suffering from recurrent flooding that covers major 
parts of both islands. More frequent storms and King Tides have 
resulted in salt water inundation and the destruction of crops. 
These developments have raised deep concerns about public 
health and safety. For decades, after having been disconnected 
from traditional lifestyles on Bikini, the lack of appropriate 
space, suitable fishing grounds, and limited crops has 
encouraged dependence on imported supplies.
    The Administration supports enactment of section 2 of S. 
2360.
Reliable air service in American Samoa
    Section 3 of the bill would facilitate reliable air service 
within American Samoa between the islands of Tutuila and 
Manu'a.
    Currently, Hawaiian Airlines is the only U.S. airline to 
service American Samoa from Hawaii and the U.S. mainland. No 
U.S. airlines provide service within American Samoa between the 
main island of Tutuila and the islands of Manu'a. That service 
currently is being provided by Polynesian Airlines, a company 
of the neighboring independent country of Samoa. While 
permitting this service on a temporary basis, U.S. law requires 
the renewal of the permit every 30 days.
    The lack of reliable air service within American Samoa 
impedes the development of its full economic potential. 
Tourism, an essential economic driver for island communities, 
cannot thrive without frequent and regular air service. Social 
development and quality of life are negatively affected, 
especially essential educational and health care services for 
the residents of Manu'a.
    Section 3 would allow a foreign air carrier to sustain 
service between Tutuila and Manu'a. Such a provision is 
necessary because no U.S. airline provides service between 
Tutuila and Manu'a. The removal of the requirement for a new 
application every 30 days will bring certainty to the route and 
allow reservations to be made far in advance of expected 
travel, aiding tourism and economic development in American 
Samoa, especially Manu'a.
    The Administration supports the enactment of section 3 of 
S. 2360.
Drivers' licenses and personal identification cards
    Section 4 of the bill would amend the Real ID Act of 2005 
to improve the availability of drivers' licenses and 
identification documents to freely associated state (FAS) 
citizens living in the United States as legal migrants. These 
FAS individuals are citizens of the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Republic 
of Palau.
    Under the Compacts of Free Association, FAS citizens, who 
are otherwise eligible, are admitted without visa to study, 
work and reside in the United States and its territories. 
Admission at ports of entry in the Pacific, especially Guam and 
Hawaii, seldom pose a problem for legal FAS migrants. Once in 
the continental United States, however, FAS migrants can 
encounter state, local and private authorities who are not 
aware of their Compact privileges to study, work and live in 
the United States.
    As lawful nonimmigrants, FAS citizens admitted under the 
Compacts are eligible (if otherwise qualified under state law) 
to be issued state driver's licenses compliant with the Real ID 
Act of 2005. However, because their admission to the United 
States is not for a specific time period, they are subject to a 
provision of the REAL ID Act that in many cases limits the 
validity period of the driver's license to one year, rather 
than the period of up to eight years otherwise authorized by 
the REAL ID Act. Although the Department of Homeland Security 
has provided guidance to state motor vehicle authorities 
advising them that FAS citizens presenting a U.S. Citizenship 
and Immigration Services employment authorization document may 
be issued a REAL ID-compliant driver's license valid until the 
expiration date of the employment authorization document which 
may be several years in the future, a more comprehensive 
statutory fix to this problem is appropriate.
    Section 4 of the bill would provide a special provision for 
FAS Compact nonimmigrants exempting them from the provision 
otherwise limiting nonimmigrants without evidence of a specific 
period of authorized stay to a temporary driver's license valid 
only for one year. This provision would reduce unnecessary 
burden on FAS citizens in the United States, their employers, 
and state agencies alike by allowing them to obtain driver's 
licenses on the same basis as other long-term migrants in the 
United States.
    The Administration supports the enactment of section 4 of 
S. 2360.


                     s. 2610--agreement with palau


    S. 2610 would approve the 15-year review agreement under 
the Compact of Free Association between the United States and 
the Republic of Palau.
    As required in the original Compact (Public Law 99-658), a 
15-year review was conducted, after which the review agreement 
was signed on September 3, 2010, primarily revising the U.S. 
economic assistance aspects of the Compact. The review 
agreement called for a U.S. appropriation for Palau of $229 
million through 2024. Instead, because the agreement has not 
yet been brought into force, the United States, through the 
U.S. Department of the Interior, has made annual payments, 
beginning with fiscal year 2010, of approximately $13.1 million 
a year for a total of $92 million in discretionary funds thus 
far. S. 2610 would fund the remaining amount of $149 million, 
which includes remaining moneys for the U.S. Postal Service.
    Just as important as the U.S. economic assistance aspects 
of the agreement and this legislation is the commitment of 
Palau to the economic, legislative, financial, and management 
reforms contained in the 2010 agreement. These reforms would 
ensure that Palau continues to take meaningful steps toward 
financial accountability and efficiency to increase Palau's 
long-term economic stability.
    On February 22, 2016, the Secretary of the Interior re-
transmitted draft legislation to Congress, along with the 
Departments of State and Defense, to implement the review 
agreement.
    The relationship between the United States and the Republic 
of Palau is grounded in shared history, friendship, and a 
strong partnership in national security, especially with 
respect to the Asia-Pacific region. In the Battle of Peleliu, 
in Palau, more than 1,500 American servicemen lost their lives, 
and more than 8,000 were wounded, resulting in one of the 
costliest battles in the Pacific in World War II. After the 
war, the United States assumed administrative authority over 
Palau as part of the Trust Territory of the Pacific Islands and 
in 1994 the people of Palau expressed their desire, in 
plebiscite, to become a sovereign nation in free association 
with the United States under a Compact of Free Association.
    The Compact provides U.S. military forces full authority 
and responsibility for security and defense matters in and 
relating to Palau. Conversely, the United States has the 
extraordinary advantage of being able to deny other nations' 
military forces access to Palau, an important element of our 
Pacific strategy for defense in the Pacific. The Compact has 
also helped strengthen democratic principles and economic 
stability in Palau, and stabilizing the larger Micronesia 
region which includes the U.S. territory of Guam and the 
Kwajalein Missile Range in the Marshall Islands.
    In addition to the important historical and security 
relationship, Palau has consistently demonstrated a commitment 
to the U.S.-Palau partnership under the Compact. Palauan 
nationals have served in U.S. coalition missions and 
participated in U.S. led combat operations. Palauan citizens 
volunteer in disproportionately large numbers in the U.S. 
military compared to its population. At the United Nations, 
Palau has voted with the United States more than 95 percent of 
the time.
    Approving the agreement with Palau is important to the 
national security of the United States, our bilateral 
relationship with Palau, and stability in the Western Pacific 
Region.
    The Administration supports enactment of S. 2610.


                       additional insular issues


    Besides the issues in S. 2360 and S. 2610, I would like to 
raise other matters of importance to the insular areas that 
have been raised by their leaders.
Compact impact aid
    The first issue is the growing number of migrants under the 
Compacts of Free Association to U.S. jurisdictions, 
particularly Guam and Hawaii, and its financial impacts on 
these affected jurisdictions.
    As noted earlier, the Compacts of Free Association allows 
FAS citizens to live and work in the United States as legal 
nonimmigrants. The Compact of Free Association Amendments Act, 
Public Law 108-188, included provisions to address the impact 
the Compacts are having on U.S. jurisdictions.
    The law provides $30 million in mandatory funds annually to 
defray costs associated with Compact impact. Congress has also 
provided approximately $3 million in discretionary funds for 
the last several years to help meet education needs. However, 
the Governors of Guam and Hawaii combined have reported 
spending well in excess of $200 million each year on services 
for FAS citizens, far exceeding the $33 million federal 
contribution against costs.
    The Governors, as well as other officials from these 
jurisdictions, seek additional funds to defray the increasing 
financial cost of migration. In addition to funding offsets, 
the affected jurisdictions have also advocated policy changes. 
In particular, officials propose eliminating restrictions 
contained in the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996. This would reinstate direct 
assistance for FAS citizens through Medicaid, Temporary 
Assistance for Needy Families, the Supplemental Nutrition 
Assistance Program, and other means-tested public assistance 
programs.
    The Department of the Interior believes the concerns of the 
affected jurisdictions deserve attention. The Department 
concurs that the current allocation of mandatory and 
discretionary funds are insufficient to defray costs and 
welcomes revisiting the exclusion of FAS citizens from Federal 
public benefits with Congress and other Federal departments.
CNMI only transitional worker visa classification
    The second issue I would like to raise is the elimination 
of the Commonwealth of the Northern Mariana Islands (CNMI) 
CNMI-Only Transitional Worker (CW) visa classification in 2019.
    When the CNMI established a political union with the United 
States in 1986, the territory retained jurisdiction and control 
over immigration and allowed an influx of foreign contract 
workers. By the year 2000, 58 percent of the CMNI's population 
was born in a foreign country, illustrating the heavy reliance 
on foreign contract workers by the CNMI economy.
    In 2008, Public Law 110-229, the Consolidated Natural 
Resources Act of 2008 (CNRA), extended Federal immigration law 
to the CNMI beginning in November of 2009, but provided for a 
transition period through December 31, 2014 (with possible 
extensions), during which foreign contract workers admitted 
under the former CNMI immigration laws would be phased out in 
favor of full implementation of the Immigration and Nationality 
Act and other Federal immigration laws. As part of the 
transition program, the CNRA provided for the CW nonimmigrant 
visa classification to provide necessary workers for the CNMI 
economy who would not be available under other federal 
immigration law.
    On June 3, 2014, the U.S. Secretary of Labor exercised the 
authority provided to him under the CNRA to extend the CW 
program for five years, through December 31, 2019, because of 
an ``insufficient number of U.S. workers to meet CNMI 
businesses' current needs.'' Following that decision, Congress 
extended the entire transition period through that same date of 
December 31, 2019, but removed the authority of the U.S. 
Secretary of Labor further to extend the CW program beyond that 
date.
    Despite efforts by the CNMI Governor to increase the 
available U.S. workforce in the territory, current estimates 
predict that over ten thousand foreign workers will still be 
needed to meet the projected demands of the CNMI's tourism and 
construction industries. The CNMI economy is just beginning to 
recover from the closure of all its garment factories in 2009, 
and the viability of the CNMI pension system is dependent on 
the construction of several proposed hotels and casinos. The 
recovery of the CNMI economy and efforts to train the CNMI 
workforce continues to be an issue of utmost importance.
Puerto Rico tax and health legislation
    In October 2015, the Administration forwarded a roadmap to 
the Congress outlining measures to deal with the economic and 
fiscal crisis in Puerto Rico. The plan contained four key 
elements, two of which are applicable to the other U.S. 
territories.
    One element is to strengthen the Medicaid program in Puerto 
Rico and stabilize Federal funding so that it does not 
contribute to Puerto Rico's fiscal challenges. The plan 
specifically notes that Medicaid funding in Puerto Rico is 
capped, U.S. citizens in Puerto Rico are offered fewer 
benefits, and the federal government contributes less on a per 
capita basis in Puerto Rico than in the remainder of the 
nation.
    Another element recognizes the Earned Income Tax Credit 
(EITC) as one of the strongest policy tools for rewarding work 
and supporting economic growth. Providing Puerto Rico access to 
the EITC would put the territory on equal footing with the 50 
states and the District of Columbia. Fully extending the Child 
Tax Credit to Puerto Rico would provide another incentive for 
workers while supporting growth.
    Similar to Puerto Rico, the other four U.S. territories--
Guam, American Samoa, the U.S. Virgin Islands, and the CNMI--
face capped Medicaid funding from the Federal government and a 
lower per capita contribution than the 50 states and the 
District of Columbia. Recognizing the need to elevate 
healthcare services in the territories, the Administration's 
fiscal year 2017 budget proposes a path for the territories to 
establish Medicaid programs that offer similar benefits and 
receive Federal funding contributions like the 50 states. 
Extending the EITC and Child Tax Credit to the other four 
territories would also promote economic expansion and support 
workers in the islands who continue to face challenges in 
growing and diversifying their economies.
    As the Congress addresses the crisis situation in Puerto 
Rico, the Department believes the other territories should be 
considered for inclusion in health and tax provisions that may 
be extended to Puerto Rico. This would equalize treatment among 
the territories and the states as well as take steps to prevent 
a crisis, based on unequal treatment, from developing in the 
other territories.
    I appreciate the opportunity to testify and urge 
expeditious approval of S. 2360 and S. 2610.

                        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. 2360, 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):

                         Table of Laws Affected

1. Public Law 97-257--Supplemental Appropriations Act, 1982
2. Title 49 U.S.C. 40109(g)
3. The REAL ID Act of 2005
                              ----------                              


                 SUPPLEMENTAL APPROPRIATIONS ACT, 1982


Public Law 97-257

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TITLE I

           *       *       *       *       *       *       *



                              CHAPTER VIII


DEPARTMENT OF THE INTERIOR

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OFFICE OF TERRITORIAL AFFAIRS

           *       *       *       *       *       *       *



                 TRUST TERRITORY OF THE PACIFIC ISLANDS

    For an additional amount for ``Trust Territory of the 
Pacific Islands'', $24,957,000, to remain available until 
expended, of which $1,000,000 shall be available for immediate 
payment to the people of Bikini under the terms and conditions 
as set forth in a trust agreement or amendment thereto approved 
by the Bikini/Kili Council subject only to the disapproval of 
the Secretary of the Interior: [Provided, That $19,600,00 shall 
be available for the relocation and resettlement of the Bikini 
people in the Marshall Islands, principally on Kili and Ejit 
Islands:] Provided, That such funds, including funds provided 
pursuant to the Department of the Interior and Related Agencies 
Appropriations Act, 1989 (Public Law 100-446; 102 Stat. 1774), 
shall be available for the relocation and resettlement of the 
Bikini people living on Kili and Ejit Islands, on the condition 
that the Secretary of the Interior submits to the Committee on 
Energy and Natural Resources of the Senate and the Committee on 
Natural Resources of the House of Representatives a 
resettlement plan developed in coordination with the Bikini 
Atoll leadership: Provided further, That for any fiscal year, 
annual expenditures from the Resettlement Fund established by 
this section and pursuant to the Department of the Interior and 
Related Agencies Appropriations Act, 1989 (Public Law 100-446; 
102 Stat. 1774) may not exceed an amount that is greater than 
90 percent of the average annual earnings of the Fund for the 
preceding 5 years unless for resettlement purposes outside of 
the Marshall Islands: Provide further, That such sum shall be 
paid to a trustee selected by the Bikini/Kili Council subject 
only to the disapproval of the Secretary of the Interior:

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UNITED STATES CODE

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TITLE 49--TRANSPORTATION

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                    Subtitle VII--Aviation Programs


                    PART A--AIR COMMERCE AND SAFETY


                           Subpart I--General


CHAPTER 401--GENERAL PROVISIONS

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Sec. 40109. Authority to exempt

    (g) Emergency Air Transportation by Foreign Air Carriers.--
          (1) To the extent that the Secretary decides an 
        exemption is in the public interest, the Secretary may 
        exempt by order a foreign air carrier from the 
        requirements and limitations of this part for not more 
        than 30 days to allow the foreign air carrier to carry 
        passengers or cargo in interstate air transportation in 
        certain markets if the Secretary finds that
                  (A) because of an emergency created by 
                unusual circumstances not arising in the normal 
                course of business, air carriers holding 
                certificates under section 41102 of this title 
                cannot accommodate traffic in those markets;
                  (B) all possible efforts have been made to 
                accommodate the traffic by using the resources 
                of the air carriers, including the use of--
                          (i) foreign aircraft, or sections of 
                        foreign aircraft, under lease or 
                        charter to the air carriers; and
                          (ii) the air carriers' reservations 
                        systems to the extent practicable;
                  (C) the exemption is necessary to avoid 
                unreasonable hardship for the traffic in the 
                markets that cannot be accommodated by the air 
                carriers; and
                  (D) granting the exemption will not result in 
                an unreasonable advantage to any party in a 
                labor dispute where the inability to 
                accommodate traffic in a market is a result of 
                the dispute.
          (2) When the Secretary grants an exemption to a 
        foreign air carrier under this subsection, the 
        Secretary shall--
                  (A) ensure that air transportation that the 
                foreign air carrier provides under the 
                exemption is made available on reasonable 
                terms;
                  (B) monitor continuously the passenger load 
                factor of air carriers in the market that hold 
                certificates under section 41102 of this title; 
                and
                  [(C) review the exemption at least every 30 
                days to ensure that the unusual circumstances 
                that established the need for the exemption 
                still exist.]
                  (C) review the exemption at least every 30 
                days (or, in the case of exemptions that are 
                necessary to provide and sustain air 
                transportation in American Samoa between the 
                islands of Tutuila and Manu'a, at least every 
                180 days), to ensure that the unusual 
                circumstances that established the need for the 
                exemption still exist.
          [(3) The Secretary may renew an exemption (including 
        renewals) under this subsection for not more than 30 
        days. An exemption may continue for not more than 5 
        days after the unusual circumstances that established 
        the need for the exemption cease.]
          (3) Renewal of Exemptions.--
                  (A) In General.--Except as provided in 
                subparagraph (B), the Secretary may renew an 
                exemption (including renewals) under this 
                subsection for not more than 30 days.
                  (B) Exception.--An exemption that is 
                necessary to provide and sustain air 
                transportation in American Samoa between the 
                islands of Tutuila and Manu'a, may be renewed 
                for not more than 180 days.
          (4) Continuation of Exemptions.--An exemption may 
        continue for not more than 5 days after the unusual 
        circumstances that established the need for the 
        exemption cease.

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                              ----------                              


                          REAL ID ACT OF 2005


                    Division B of Public Law 109-13


 AN ACT Making Emergency Supplemental Appropriations for Defense, the 
 Global War on Terror, and Tsunami Relief, for the fiscal year ending 
September 30, 2005, and for other purposes.

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                    Division B--REAL ID Act of 2005


SECTION 1. SHORT TITLE.

    This division may be cited as the ``REAL ID Act of 2005''.

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    TITLE II--IMPROVED SECURITY FOR DRIVERS' LICENSES AND PERSONAL 
                          IDENTIFICATION CARDS


SEC. 201. DEFINITIONS.

    In this title, the following definitions apply:
          (1) Driver's license.--The term ``driver's license'' 
        means a motor vehicle operator's license, as defined in 
        section 30301 of title 49, United States Code.
          (2) Identification card.--The term ``identification 
        card'' means a personal identification card, as defined 
        in section 1028(d) of title 18, United States Code, 
        issued by a State.
          (3) Official purpose.--The term ``official purpose'' 
        includes but is not limited to accessing Federal 
        facilities, boarding federally regulated commercial 
        aircraft, entering nuclear power plants, and any other 
        purposes that the Secretary shall determine.
          (4) Secretary.--The ``Secretary'' means the Secretary 
        of Homeland Security.
          (5) State.--The ``State'' means a State of the United 
        States, the District of Columbia, Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Northern 
        Mariana Islands, [the Trust Territory of the Pacific 
        Islands], and any other territory or possession of the 
        United States.

SEC. 202. MINIMUM DOCUMENT REQUIREMENTS AND ISSUANCE STANDARDS FOR 
                    FEDERAL RECOGNITION.

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    (c) Minimum Issuance Standards.--
          (1) In general.--To meet the requirements of this 
        section, a State shall require, at a minimum, 
        presentation and verification of the following 
        information before issuing a driver's license or 
        identification card to a person:
                  (A) A photo identity document, except that a 
                non-photo identity document is acceptable if it 
                includes both the person's full legal name and 
                date of birth.
                  (B) Documentation showing the person's date 
                of birth.
                  (C) Proof of the person's social account 
                number or verification that the person is not 
                eligible for a social security account number.
                  (D) Documentation showing the person's name 
                and address of principal residence.
          (2) Special requirements.--
                  (A) In general.--To meet the requirements of 
                this section, a State shall comply with the 
                minimum standards of this paragraph.
                  (B) Evidence of lawful status.--A State shall 
                require, before issuing a driver's license or 
                identification card to a person, valid 
                documentary evidence that the person--
                          (i) is a citizen or national of the 
                        United States;

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                          (viii) has approved deferred action 
                        status; [or]
                          (ix) has a pending application for 
                        adjustment of status to that of alien 
                        lawfully admitted for permanent 
                        residence in the United States or 
                        conditional permanent resident status 
                        in the United States [.] ; or
                          (x) is a citizen of the Republic of 
                        the Marshall Islands, the Federated 
                        States of Micronesia, or the Republic 
                        of Palau who has been admitted to the 
                        United States as a onimmigrant pursuant 
                        to a Compact of Free Association 
                        between the United States and the 
                        Republic or Federated States.

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