Commonwealth of the Northern Mariana Islands: Pending Legislation
Would Apply U.S. Immigration Law to the CNMI with a Transition	 
Period (28-MAR-08, GAO-08-466). 				 
                                                                 
The Commonwealth of the Northern Mariana Islands (CNMI) is	 
subject to most U.S. laws but, under the terms of its 1976	 
covenant with the United States, administers its own immigration 
system. It has applied this flexibility to admit substantial	 
numbers of foreign workers, in addition to admitting tourists and
foreign investors. The covenant grants Congress the right to	 
apply federal immigration law to the CNMI. On December 11, 2007, 
the House of Representatives passed legislation applying U.S.	 
immigration law to the CNMI; as of report issuance, this	 
legislation was pending in the Senate. If passed, it will amend  
the covenant and will apply federal immigration law to the CNMI 1
year after the legislation's enactment, subject to a transition  
period that begins 1 year after enactment but may be delayed 180 
days. GAO was asked to review key provisions of the pending	 
legislation, current U.S. immigration law, and current CNMI	 
immigration law, particularly regarding (1) foreign workers, (2) 
tourists, and (3) foreign investors. The Departments of Homeland 
Security and the Interior generally agreed with the findings in  
this report, and the Department of Labor provided no comments.	 
The CNMI government disagreed with some key findings related to  
GAO's interpretation of the legislation. GAO continues to	 
interpret the legislation as stated in this report.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-466 					        
    ACCNO:   A81442						        
  TITLE:     Commonwealth of the Northern Mariana Islands: Pending    
Legislation Would Apply U.S. Immigration Law to the CNMI with a  
Transition Period						 
     DATE:   03/28/2008 
  SUBJECT:   Federal law					 
	     Federal regulations				 
	     Foreign governments				 
	     Foreign policies					 
	     Immigration					 
	     Immigration and naturalization law 		 
	     International agreements				 
	     International relations				 
	     Policy evaluation					 
	     Program evaluation 				 
	     Proposed legislation				 
	     Visas						 
	     Foreign countries					 
	     Program implementation				 
	     Tourism						 

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GAO-08-466

   

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Report to Congressional Committees: 

United States Government Accountability Office: 

GAO: 

March 2008: 

Commonwealth of the Northern Mariana Islands: 

Pending Legislation Would Apply U.S. Immigration Law to the CNMI with a 
Transition Period: 

Commonwealth of the Northern Mariana Islands: 

GAO-08-466: 

GAO Highlights: 

Highlights of GAO-08-466, a report to congressional committees. 

Why GAO Did This Study: 

The Commonwealth of the Northern Mariana Islands (CNMI) is subject to 
most U.S. laws but, under the terms of its 1976 covenant with the 
United States, administers its own immigration system. It has applied 
this flexibility to admit substantial numbers of foreign workers, in 
addition to admitting tourists and foreign investors. 

The covenant grants Congress the right to apply federal immigration law 
to the CNMI. On December 11, 2007, the House of Representatives passed 
legislation applying U.S. immigration law to the CNMI; as of report 
issuance, this legislation was pending in the Senate. If passed, it 
will amend the covenant and will apply federal immigration law to the 
CNMI 1 year after the legislationï¿½s enactment, subject to a transition 
period that begins 1 year after enactment but may be delayed 180 days. 

GAO was asked to review key provisions of the pending legislation, 
current U.S. immigration law, and current CNMI immigration law, 
particularly regarding (1) foreign workers, (2) tourists, and (3) 
foreign investors. 

The Departments of Homeland Security and the Interior generally agreed 
with the findings in this report, and the Department of Labor provided 
no comments. The CNMI government disagreed with some key findings 
related to GAOï¿½s interpretation of the legislation. GAO continues to 
interpret the legislation as stated in this report. 

What GAO Found: 

The pending legislation applies U.S. immigration law to the CNMI and 
provides federal agencies some flexibility in preserving the CNMIï¿½s 
access to workers, tourists, and foreign investors as it transitions to 
a federal system. However, without implementing regulations, key 
details remain unknown. 

* Foreign workers. During the transition period, foreign workers may be 
admitted to the CNMI through exemptions from caps that restrict the 
number of U.S. visas for nonimmigrant workers. Workers not otherwise 
eligible under federal law may be admitted through a CNMI-only permit 
program, which may be extended indefinitely for up to 5 years at a 
time. Current workers who do not obtain U.S. immigration status may 
continue to live and work in the CNMI for a limited time. During and 
after the transition period, CNMI employers also can petition for 
nonimmigrant and employment-based permanent immigration status for 
workers under the same procedures as other U.S. employers. However, 
access to foreign workers in low-skill jobs will be limited after the 
end of the transition period in 2013 or 2014 and after any extensions 
of the CNMI-only permit program, because the demand for certain U.S. 
nonimmigrant worker visas recently has exceeded the supply and because 
no nonimmigrant visas are available for workers in continuous low-skill 
positions. While fees for the CNMI-only work permit will be determined 
by federal regulations and are unknown, the current fees for U.S. 
foreign worker permits that would apply after the end of the transition 
period and any extensions range higher than the CNMIï¿½s current foreign 
worker permit fees. 

* Tourists. The pending legislation establishes a joint visa waiver 
program by adding the CNMI to an existing Guam visa waiver program. The 
program exempts tourism and business visitors from certain countries to 
the CNMI and Guam from the standard U.S. visa documentation 
requirements. Citizens of countries not included in the CNMI-Guam or 
other U.S. visa waiver programs may apply for U.S. visitor visas, which 
require in-person applications and higher fees than the CNMI currently 
assesses. Changes in touristsï¿½ access to the CNMI will depend on the 
countries included in the CNMI-Guam visa waiver program. Until the 
joint programï¿½s implementing regulations are established, GAO cannot 
determine whether the program will be more or less restrictive than the 
current CNMI and Guam waiver programs. 

* Foreign investors. After federal immigration law applies, new CNMI 
foreign investors must meet federal lawï¿½s more stringent investment 
requirements to obtain immigrant investor status, which allows 
investors to petition for U.S. permanent resident status that is 
currently unavailable in the CNMI. New investors also could apply for 
nonimmigrant treaty investor status. In addition, the pending 
legislation allows current CNMI foreign investors to convert to CNMI-
only nonimmigrant treaty investors during the transition period. 

To view the full product, including the scope and methodology, click on 
[hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-08-466]. For more 
information, contact David Gootnick at (202) 512-3149 or 
[email protected]. 

[End of section] 

Contents: 

Letter: 

Results in Brief: 

Background: 

Pending Legislation Provisions for Foreign Workers: 

Pending Legislation Provisions for Tourists: 

Pending Legislation Provisions for Foreign Investors: 

Agency Comments and Our Evaluation: 

Appendix I: Scope and Methodology: 

Appendix II: U.S. Nonimmigrant Classes of Admission: 

Appendix III: U.S. and CNMI Fees for Foreign Workers, Tourists, and 
Foreign Investors: 

Appendix IV: Country Participation in Current Waiver Programs in the 
United States, the CNMI, and Guam: 

Appendix V: Northern Mariana Islands Immigration, Security, and Labor 
Act (H.R. 3079): 

Appendix VI: Comments from the Commonwealth of the Northern Mariana 
Islands: 

Appendix VII: Comments from the U.S. Department of Homeland Security: 

Appendix VIII: Comments from the U.S. Department of the Interior: 

Appendix IX: GAO Contact and Staff Acknowledgments: 

Abbreviations: 

CNMI: Commonwealth of the Northern Mariana Islands DHSU.S. Department 
of Homeland Security: 

DOI: U.S. Department of the Interior: 

DOL: U.S. Department of Labor: 

INA: U.S. Immigration and Nationality Act: 

United States Government Accountability Office: 

Washington, DC 20548: 

March 28, 2008: 

The Honorable Jeff Bingaman: 
Chairman: 
The Honorable Pete V. Domenici: 
Ranking Member: 
Committee on Energy and Natural Resources: 
United States Senate: 

The Honorable Nick J. Rahall II: 
Chairman: 
The Honorable Don Young: 
Ranking Member: 
Committee on Natural Resources: 
House of Representatives: 

The Honorable Donna M. Christensen: 
Chairwoman: 
The Honorable Luis G. Fortuno: 
Ranking Member: 
Subcommittee on Insular Affairs: 
Committee on Natural Resources: 
House of Representatives: 

The Commonwealth of the Northern Mariana Islands (CNMI) is subject to 
most U.S. laws, and the United States has complete responsibility and 
authority for CNMI defense and foreign affairs. However, under the 
terms of its 1976 covenant with the United States,[Footnote 1] the CNMI 
administers its own immigration system. Since 1978, it has applied this 
flexibility to admit substantial numbers of foreign workers[Footnote 2] 
from other countries, particularly China and the Philippines. In 2005, 
foreign workers represented two-thirds of all CNMI workers and 
outnumbered U.S. citizens in most industries, including the garment 
manufacturing and tourism sectors, which have been central to the 
CNMI's economy. The CNMI also admits tourists under its own entry 
permit and entry permit waiver programs, and it provides various types 
of admission to foreign investors. 

Under the terms of the U.S.-CNMI covenant, Congress has the right to 
apply federal immigration law without the consent of the CNMI 
government. On December 11, 2007, the House of Representatives passed 
legislation applying U.S. immigration law to the CNMI; as of report 
issuance, this legislation was pending in the Senate.[Footnote 3] If 
passed, the legislation will amend the covenant to establish federal 
control of CNMI immigration, applying U.S. immigration law[Footnote 4] 
to the CNMI 1 year after the date of enactment with several exceptions 
affecting foreign workers and investors during a transition 
period[Footnote 5] ending in 2013 under H.R. 3079, passed by the House, 
or in 2014 under S. 2739, pending in the Senate. In addition, the U.S. 
Secretary of Labor will have the authority to extend indefinitely, for 
up to 5 years at a time, a transition period program providing CNMI- 
only work permits. Further, the legislation amends U.S. immigration law 
to add the CNMI to an existing visa waiver program for Guam 
visitors.[Footnote 6] Any changes to U.S. immigration law enacted by 
the Congress after the enactment of this legislation would also be 
applicable to the CNMI. 

The stated intent of the pending legislation is to ensure effective 
border control procedures and protect national and homeland security, 
while minimizing the potential adverse economic and fiscal effects of 
phasing out the CNMI's own foreign worker program and maximizing the 
potential for economic and business growth. You asked us to review key 
provisions of the pending legislation, current U.S. immigration law, 
and current CNMI immigration law, particularly regarding (1) foreign 
workers, (2) tourists, and (3) foreign investors. We plan to issue a 
separate report examining the potential impact of the pending 
legislation on the CNMI's economy and labor market. 

For this report, we reviewed relevant CNMI immigration and labor laws, 
current U.S. immigration law, and pending legislation that would apply 
U.S. immigration law to the CNMI. To examine CNMI immigration laws, we 
reviewed portions of the following CNMI laws relevant to this report: 
the Nonresident Workers Act, the Northern Mariana Islands 
Administrative Code, the Commonwealth Employment Act of 2007, and 
related immigration and labor laws and agreements. We also conducted a 
site visit in the CNMI and interviewed officials in the CNMI Office of 
the Governor, the CNMI Department of Immigration, the CNMI Department 
of Labor, and the Marianas Visitors Authority. We conducted additional 
interviews with CNMI officials in Washington, D.C. To examine U.S. 
immigration law, we reviewed the U.S. Immigration and Nationality Act 
(INA)[Footnote 7] and related regulations and interviewed officials 
from the U.S. Departments of Homeland Security (DHS) and the Interior 
(DOI). We did not review the extent to which CNMI or U.S. laws were 
properly enforced or implemented. We also reviewed proposed legislation 
applying U.S. immigration law to the CNMI, including H.R. 3079, passed 
by the House of Representatives, and S. 2739, pending in the Senate. We 
conducted this performance audit from December 2007 to March 2008 in 
accordance with generally accepted government auditing standards. Those 
standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe that 
the evidence obtained provides a reasonable basis for our findings and 
conclusions based on our audit objectives. See appendix I for further 
details about our methodology. 

Results in Brief: 

The pending legislation applies U.S. immigration law to the CNMI, and 
exceptions to U.S. law provide federal agencies with some flexibility 
in preserving the CNMI's access to workers, tourists, and foreign 
investors as it transitions to the federal system. However, without 
regulations implementing the pending legislation, key details related 
to foreign workers, tourists, and foreign investors remain unknown. 

* Foreign workers. During the pending legislation's transition period, 
foreign workers may be admitted to the CNMI through exemptions from 
caps that restrict the number of U.S. nonimmigrant visas available for 
temporary workers. Workers not otherwise eligible under federal 
immigration law may be admitted through a CNMI-only permit program, 
which may be extended indefinitely for up to 5 years at a time by the 
U.S. Secretary of Labor. In addition, current workers who do not obtain 
U.S. immigration status may continue to live and work in the CNMI for a 
limited time. During and after the transition period, CNMI employers 
also can petition for nonimmigrant status and employment-based 
permanent immigration status for workers under the same procedures as 
other U.S. employers. However, access to foreign workers in low-skill 
jobs will be limited after the end of the transition period in 2013 or 
2014 and after any extensions of the CNMI-only permit program, because 
the demand for certain U.S. nonimmigrant worker visas has exceeded the 
capped supply in recent years and because there are no nonimmigrant 
visas available for workers in continuous low-skill positions. The 
pending legislation also preempts all CNMI laws related to the 
admission[Footnote 8] or removal of aliens, which includes all CNMI 
immigration laws and may include some CNMI labor laws. Fees for the 
CNMI-only work permit will be determined by federal regulations and are 
currently not available. However, the current fees for U.S. foreign 
worker permits that would apply after the end of the transition period 
and any extensions range higher than the CNMI's current permit fees for 
foreign workers. 

* Tourists. The pending legislation establishes a joint visa waiver 
program by adding the CNMI to an existing Guam visa waiver program. The 
program exempts tourism and business visitors from certain countries 
who are traveling to the CNMI and Guam from the standard U.S. visa 
documentation requirements. Citizens of countries who do not qualify 
for entry under the CNMI-Guam or other U.S. visa waiver programs may 
apply for U.S. visitor visas for business or pleasure, which require in-
person applications and higher fees than the CNMI currently assesses. 
Changes in tourists' access to the CNMI will depend on the countries 
included in the CNMI-Guam visa waiver program. Until the regulations 
implementing the new visa waiver program are established, we cannot 
determine whether the joint program will be more or less restrictive 
than the current CNMI and Guam waiver programs. 

* Foreign investors. After federal immigration law applies, new CNMI 
foreign investors must meet federal law's more stringent investment 
requirements to obtain immigrant investor status, which allows 
investors to petition for U.S. permanent immigration status that is 
currently unavailable in the CNMI. New investors also could apply for 
nonimmigrant treaty investor status. In addition, the pending 
legislation allows current CNMI foreign investors to convert to CNMI- 
only nonimmigrant treaty investors during the transition period. It 
also eliminates the CNMI's permit programs for retiree investors and 
long-term business travelers and allows these and other business 
travelers to apply to visit the CNMI under a visitor visa or other 
categories available under federal immigration law. 

We received written comments on the draft report from the Department of 
Homeland Security, the Department of the Interior, and the CNMI 
government, which are reprinted in appendixes VI, VII, and VIII. We 
also received technical comments from the Department of Homeland 
Security, the Department of the Interior, and the CNMI government. We 
incorporated their comments as appropriate. The Department of Labor had 
no comments. We also provided a draft for technical review to the U.S. 
Department of State, and State had no comments. The Department of 
Homeland Security generally agreed with our findings regarding the 
pending legislation. The Department of the Interior generally agreed 
with our findings, saying that the report presents a fair and objective 
study on the effect of the pending legislation. The CNMI government 
disagreed with our analysis of the legislation in three particular 
areas. First, the CNMI government asserted that the legislation allows 
the exemptions from the numerical limitation on H visas to be extended 
beyond the end of the transition period in 2013. We continue to 
interpret the legislation to allow for an extension of the CNMI-only 
work permit program beyond 2013 at the discretion of the Secretary of 
Labor but not to allow for an extension beyond 2013 of other provisions 
of the transition program, including the exemptions from the numerical 
limitations on H visas.[Footnote 9] Second, the CNMI disagreed with our 
interpretation that the H visas issued under the cap exemptions are a 
separate process from the CNMI-only work permit program. According to 
the CNMI's interpretation, employers of workers admitted under H visas 
would have to obtain a CNMI-only work permit. We continue to interpret 
the H visa cap exemptions and the CNMI-only permit program as separate 
processes. Third, the CNMI commented that we should not base any 
further work regarding the impact of the legislation on the CNMI 
economy on a single legal interpretation. While the legislation is 
highly technical, we believe we have provided a reasonable, objective 
interpretation of the legislation that is consistent with the 
implementing agencies' views. As such, we believe our interpretation of 
the legislation can be used appropriately as the basis of further work 
on the potential economic impact of the legislation, while 
acknowledging the range of possible federal decisions regarding 
implementation of the legislation. Our detailed evaluation of the CNMI 
government's comments is included in appendix VI. 

Background: 

The CNMI consists of 14 islands in the Pacific Ocean, 3 of which are 
substantially inhabited, just north of Guam and about 5,500 miles from 
the U.S. mainland. In 2005, more than two-thirds of the CNMI's workers 
were non-U.S. citizens (noncitizens), who were predominantly Chinese or 
Filipino. Foreign workers make up more than two-thirds of the workforce 
for the CNMI's two major industries, garment manufacturing and tourism. 
Noncitizens also invest in the CNMI, contributing entrepreneurial 
skills and capital and owning businesses. 

CNMI Economy: 

In 2007, we reported that the CNMI's economic potential was 
constrained, in part, by its lack of diversification and faced serious 
challenges owing to declines in garment manufacturing and 
tourism.[Footnote 10] Among factors affecting the garment industry, 
liberalization in trade law in the early 2000s reduced the CNMI's trade 
advantage relative to low-wage countries such as China, causing CNMI 
exports to fall. The CNMI's tourism industry has been subject to 
fluctuations due to Asian economic trends in the late 1990s, as well as 
recent changes in airline practices. Until 2007, the CNMI's workforce 
was subject to a minimum wage set by the CNMI government that was lower 
than the U.S. mainland's; however, Congress enacted a law in 2007 that 
applied the U.S. minimum wage to the CNMI and will gradually increase 
the CNMI minimum wage until it meets federal minimum wage 
requirements.[Footnote 11] 

CNMI-U.S. Covenant: 

In 1976, after almost 30 years as a trust territory of the United 
States,[Footnote 12] the District of the Mariana Islands entered into a 
covenant with the United States establishing the island territory's 
status as a self-governing commonwealth in political union with the 
United States.[Footnote 13] The covenant grants CNMI citizens the right 
of self-governance over internal affairs and grants the United States 
complete responsibility and authority for matters relating to foreign 
affairs and defense affecting the CNMI. Under the covenant, the U.S. 
government may enact legislation in accordance with its constitutional 
processes that will be applicable to the CNMI.[Footnote 14] To respect 
the CNMI's right of self-government under the covenant, certain 
provisions of the covenant may be modified only with the consent of 
both the federal government and the CNMI government. These provisions 
include those relating to the political relationship between the United 
States and the CNMI; the CNMI Constitution, citizenship, and 
nationality; the application of the U.S. Constitution to the CNMI; and 
the land ownership rights of CNMI citizens. Most other provisions of 
the CNMI covenant may be modified by the federal government without the 
consent of the CNMI government, and local CNMI laws that were not 
inconsistent with federal laws or treaties of the United States when 
the covenant was enacted remain in effect. In addition, international 
treaty obligations between the United States and other countries apply 
to the CNMI through the covenant. 

The covenant initially made many federal laws applicable to the CNMI, 
including laws that provide federal services and financial assistance 
programs.[Footnote 15] The covenant preserved the CNMI's exemption from 
certain federal laws that had previously been inapplicable to the Trust 
Territory of the Pacific Islands, including federal immigration laws 
with certain limited exceptions[Footnote 16] and certain federal 
minimum wage provisions. However, under the terms of the covenant, the 
federal government has the right to apply federal law in these exempted 
areas without the consent of the CNMI government. 

Current CNMI Immigration Law: 

CNMI immigration law currently includes the following provisions for 
foreign workers, tourists, and foreign investors: 

* Foreign workers. The CNMI currently retains legislative authority 
over most immigration laws. While it does not have embassies or issue 
visas in other countries, it regulates entry to the CNMI through a 
permit system. The CNMI recently passed a bill that establishes new 
immigration and labor rules for foreign workers in the CNMI, as of 
January 1, 2008. These rules continue to provide for, among other 
things, a nonresident worker entry permit for noncitizens entering the 
CNMI whom the CNMI Department of Labor has certified as eligible for 
temporary work. Employers seeking work permits for their temporary 
workers must be able to demonstrate that they advertised the position 
and were unable to find a qualified CNMI resident, with some exemptions 
available.[Footnote 17] CNMI law also contains an employment preference 
for citizens and permanent residents, requiring that most employers in 
the CNMI hire at least 20 percent of their employees from these groups, 
increasing in phases to 30 percent by 2013. Employers with fewer than 
five employees are exempt from this requirement, and the CNMI Secretary 
of Labor may grant waivers for construction projects of limited 
duration and for light manufacturing.[Footnote 18] CNMI law currently 
includes a general moratorium on hiring foreign workers, under which 
employers can renew contracts for foreign workers and can replace 
current workers with transfers for certain occupations but cannot add 
to the total number of foreign workers employed in the CNMI.[Footnote 
19] Additional exemptions from the moratorium exist for visitor 
industry supporting services, certain light manufacturing operations, 
employers who have hired over 35 percent of their employees from CNMI 
citizens, and major new developments that benefit the CNMI economy. The 
moratorium for the tourism industry expired on January 1, 2008; after a 
gradual phase-out applicable to other industries ends in 2011, all 
employers will be able to hire foreign workers. 

The CNMI has developed related regulations, effective February 1, 2008, 
for hiring and admitting foreign workers and for their subsequent 
employment. For entry into the CNMI, a foreign worker must provide 
certain documents to the CNMI immigration authority and sign a form in 
the worker's native language attesting to compliance with CNMI 
immigration requirements. The CNMI Director of Labor must approve the 
employment contract and the worker's right to be present in the CNMI. 
Foreign workers must attend an orientation session upon admission into 
the CNMI and must carry a valid entry permit with them at all times. 
Under the standards for employment, employers in the CNMI are required 
to provide foreign workers with medical insurance, and they may provide 
additional benefits, such as housing, food, and transportation. CNMI 
regulations also contain specific requirements for the renewal, 
nonrenewal, and termination of employment contracts for foreign 
workers. 

Compared with previous CNMI law regarding foreign workers, the new law 
reduces the time for filing labor complaints; requires that almost all 
CNMI government employees be U.S. citizens or permanent residents; and 
adds a requirement that most foreign workers leave the CNMI for at 
least 6 consecutive months during every 3.5 year period, among other 
changes. Immediate family members of foreign national workers may enter 
the CNMI for the term of the approved employment contract after the 
foreign worker has been in the CNMI for 90 days. 

CNMI employers do not currently have the option to petition for 
immigrant status of workers under CNMI law. While U.S. lawful permanent 
residents may work in the CNMI, time spent in the CNMI generally does 
not count toward the time in the United States required to attain U.S. 
citizenship. Residence in the CNMI only counts as residence for 
naturalization purposes for immediate relatives of U.S. citizens; other 
lawful permanent residents residing in the CNMI currently do not accrue 
time for naturalization purposes. 

* Tourists. According to the CNMI government, tourists from certain 
countries may enter the CNMI as part of its entry permit waiver 
program. The program allows eligible participants to enter for tourism 
or business for up to 90 days without a visitor entry permit. 
Noncitizens who are ineligible for a waiver may apply for a visitor 
entry permit, which is valid for a single entry for 30 days. Visitors 
entering the CNMI with a visitor entry permit must have a valid 
passport and a verified round-trip itinerary and must have either a 
CNMI sponsor or acceptable proof of the financial means to support the 
visit. According to the CNMI government, information on visitor permit 
applicants from China is collected and reviewed by the CNMI under the 
Electronic Visitor Entry Permit Program. No other countries have asked 
to participate in the program. In addition, Japanese, Korean, and 
certain other tourists ages 55 and above may enter for up to 90 days 
under a comity entry permit for citizens of countries that provide a 
comparable permit to CNMI residents. 

* Foreign investors. The CNMI currently has a foreign investor permit 
available for an indefinite period of time for individuals who submit 
evidence of good moral character and who meet all of the requirements 
of the foreign investment certificate. Foreign investors in the CNMI 
must maintain an investment of at least $250,000 by an individual in a 
single investment or $100,000 per person in an aggregate investment 
exceeding $2 million.[Footnote 20] The CNMI also offers a retiree 
investor entry permit requiring a minimum investment of $100,000 in 
residential property (or $75,000 on the islands of Tinian or Rota) by 
an applicant 55 years or older. In addition, the CNMI's long-term 
business entry permit for holders of a long-term business certificate 
is valid for 2 years and requires an investment of at least $150,000 in 
a public organization or at least $250,000 in a private investment. 
They also must provide a security deposit of $25,000. The CNMI also 
offers a regular-term business entry permit. Immediate relatives of 
aliens may obtain an entry permit if they satisfy other requirements of 
CNMI law and can post a cash bond in an amount of twice the cost of 
return travel. 

Current U.S. Immigration Law: 

Noncitizens may apply for entry into the United States as either 
immigrants intending to reside permanently or as nonimmigrants. The 
immigrant categories include various employment-based categories for 
admission to the United States as lawful permanent residents, who are 
permitted to work in the United States as part of their immigration 
status. The nonimmigrant categories for temporary admission include 
diplomats, visitors for business or pleasure, treaty investors, 
students, journalists, teachers, fiancï¿½s or fiancï¿½es of U.S. citizens, 
extraordinary artists or athletes, and workers who meet certain 
requirements, among others.[Footnote 21] As a general rule, 
nonimmigrants temporarily admitted for an employment-based purpose are 
authorized to work only in the authorized position; lawful permanent 
residents and other immigrants may work for any employer. See appendix 
II for a list of U.S. nonimmigrant classes of admission. Standard U.S. 
fees for visas and immigrant petitions include DHS petition fees, 
Department of State visa fees, and for some foreign workers, Department 
of Labor fees for labor certification. 

* Foreign workers. The INA includes several types of visas for 
nonimmigrant workers and their families (H visas) and sets caps for two 
of these types of visas. In particular, the H-1 category includes high- 
skill workers coming to the United States temporarily to perform in 
specialty occupations.[Footnote 22] H-1B visa holders may be admitted 
for an initial period of 3 years that can be renewed for a total of 6 
years, and they can work in employment of varied duration, depending on 
the terms of the visa.[Footnote 23] The H-2 category includes H-2A 
visas for foreign workers providing temporary or seasonal agricultural 
labor services,[Footnote 24] as well as H-2B visas for other temporary 
workers who can perform short-term service or labor in a job for which 
unemployed U.S. workers cannot be found.[Footnote 25] H-2B visa holders 
may be admitted for an initial period of 1 year. The H-3 category 
exists for workers with residence in a foreign country who are coming 
to the United States temporarily as trainees in a program not designed 
primarily to provide productive employment or as participants in a 
special education exchange visitor program. H-4 visas provide entry, 
but not work authorization, to spouses and children of H visa holders. 
There is no H visa for workers performing continuous, rather than 
temporary, work who do not meet the high-skill requirements of the H-1 
visas. In addition, both H-1B and H-2B visas are capped--only 65,000 H- 
1B visa holders and 66,000 H-2B first-time visa holders may be issued 
visas in each fiscal year.[Footnote 26] 

Other nonimmigrant visas available for foreign workers include, among 
others, L visas for intracompany transfers; O visas for individuals of 
extraordinary ability or achievement; P visas for artists, athletes, 
and entertainers; and R visas for religious workers. In addition to 
nonimmigrant visas, the INA contains permanent employer-sponsored 
immigrant visas for individuals seeking to reside permanently in the 
United States. 

* Tourists. Under federal law, visitors may come to the United States 
for business on a B-1 visa, for pleasure on a B-2 visa, or for business 
or pleasure on a combined B-1-B-2 visa. Visitors with B visas are 
normally admitted for a minimum of 6 months, but not more than 1 year. 
B visa holders generally may not enroll in a course of study while in 
the United States on a B visa. Citizens of 27 countries may participate 
in the U.S. Visa Waiver Program, which allows stays of up to 90 days 
for business or pleasure in the United States without obtaining a 
nonimmigrant visa if they possess a valid passport, are determined by 
DHS not to be a threat to the United States, have a round-trip ticket, 
and execute the proper immigration forms, among other 
requirements.[Footnote 27] In addition to the countries under the U.S. 
Visa Waiver Program, federal law allows nationals of 9 additional 
countries to visit Guam in B status for up to 15 days without obtaining 
a visa.[Footnote 28] 

* Foreign investors. The INA allows foreign investors to enter the 
United States as nonimmigrants under treaty investor status with an E- 
2 visa. Treaty investors must invest a substantial amount of capital in 
a bona fide enterprise in the United States,[Footnote 29] must be 
seeking entry solely to develop and direct the enterprise, and must 
intend to depart the United States when their treaty investor status 
ends. Treaty investors must be nationals of a country with which the 
United States has a treaty of friendship, commerce, or navigation, and 
must be entering the United States pursuant to the provisions of the 
treaty. E-2 status is valid for up to 2 years and may be extended in 2- 
year increments. Spouses or children may apply to join foreign 
investors under the E-2 visa, and spouses are authorized to work under 
an E-2 visa. The INA also allows foreign investors to seek permanent 
immigrant visas for employment-creation purposes. Individuals seeking 
immigrant visas have to meet higher thresholds than do E-2 visa 
holders, including the general requirement to establish a business that 
creates at least 10 full-time jobs and an investment of at least $1 
million. 

Pending U.S. Legislation: 

The stated intent of the pending legislation is to ensure, through the 
application of federal immigration law to the CNMI, that effective 
border control procedures are implemented and observed and that 
national and homeland security issues are properly addressed. The 
legislation states that it includes special provisions to allow for the 
orderly phasing out of the CNMI's foreign worker program and the 
orderly phasing in of federal immigration responsibilities in the CNMI. 
The legislation also states that it intends to minimize the potential 
adverse economic and fiscal effects of phasing out the CNMI's own 
foreign worker program and to maximize the CNMI's potential for future 
economic and business growth. 

In requiring the CNMI to be subject to federal immigration law, the 
pending legislation replaces all CNMI laws related to the admission and 
removal of aliens, including the CNMI's provisions of immigration law 
regarding nonresident contract workers. Federal agencies will be 
responsible for implementing and enforcing U.S. immigration law in the 
CNMI, including establishing offices and staff. Other CNMI laws related 
to admission and removal of aliens would also be preempted, which could 
include some local CNMI labor laws. However, all local labor and other 
laws not related to the admission or removal of aliens would remain in 
effect. 

H.R. 3079, passed by the House, and S. 2739, pending in the Senate, 
include the same provisions applying U.S. immigration law to the CNMI 
but contain several exceptions. First, the transition period ends in 
2013 under the House bill and in 2014 under S. 2739. Second, S. 2739 
adds the Secretary of Defense to those with whom the U.S. Secretary of 
Labor must consult in determining whether to extend the CNMI-only work 
permit program. In addition, S. 2739 contains the text of other bills 
unrelated to immigration law in the CNMI. 

The legislation also includes several provisions related to Guam, such 
as the expansion of options for nonimmigrants to enter and work in 
Guam. Guam is an unincorporated U.S. territory south of the CNMI in the 
western Pacific. Under the legislation, the exemption for the CNMI from 
the numerical limitations for H visas until 2013 or 2014 also applies 
to Guam. The legislation also amends U.S. immigration law to add the 
CNMI to Guam's current visa waiver program to create a combined CNMI 
and Guam visa waiver program, under which DHS would promulgate a new 
list of countries that would be eligible for a Guam or CNMI visa 
waiver. 

Transition Period in Pending U.S. Legislation: 

The pending legislation applies provisions of federal immigration law 
to the CNMI one year after the legislation's enactment, subject to a 
transition period that begins 1 year after enactment and ends on 
December 31, 2013, under H.R. 3079, passed by the House, and on 
December 31, 2014, under S. 2739, pending in the Senate. The Secretary 
of Homeland Security has sole discretion to delay the start of the 
transition period for up to 180 days, and the Secretary of Labor has 
the authority to extend indefinitely a provision related to the CNMI- 
only work permit program for up to 5 years at a time. Among other 
provisions, the legislation prohibits the CNMI government from allowing 
an increase in the total number of foreign workers who are present in 
the CNMI between the legislation's enactment and the effective date of 
the transition period. Also, the legislation states that CNMI-only 
visas are not valid for entry into other parts of the United States and 
that aliens leaving the CNMI must be rescreened for entry into the 
continental United States. 

During the transition period, the Secretary of Homeland Security, in 
consultation with the Secretaries of the Interior, Labor, and State, 
has the responsibility to establish, administer, and enforce a 
transition program to regulate immigration in the CNMI. Each agency 
must issue regulations and implement agreements with the other agencies 
to identify and assign their respective duties for timely 
implementation of the transition program. The agreements must address 
procedures to ensure that CNMI employers have access to adequate labor 
and that tourists, students, retirees, and other visitors have access 
to the CNMI without unnecessary obstacles. The agreements also may 
allocate funding among the respective agencies tasked with related 
responsibilities. 

The Secretary of Homeland Security is granted significant discretion 
and flexibility during the transition period, though DHS is required, 
in some circumstances, to consult with other federal agencies or the 
CNMI on its decisions. Implementation decisions by DHS will determine 
the extent to which CNMI local laws and authority will be affected. Key 
rules and other aspects of the transition program require further 
development through regulation. In addition, federal agencies must 
determine how to implement and enforce the application of federal 
immigration law in the CNMI, including establishing offices, hiring 
staff, and implementing screening and enforcement systems. 

Other Key Provisions of Pending Legislation: 

Other key provisions of the pending legislation establish the position 
of a nonvoting CNMI delegate to the House of Representatives, require 
several studies on the legislation's implementation, transfer 
responsibility for refugee protection in the CNMI to the federal 
government, and relate to lawful permanent resident status. 

* The pending legislation establishes the position of a nonvoting CNMI 
delegate in the House of Representatives, to be filled by the Resident 
Representative to the United States, a position authorized by the CNMI 
covenant. The delegate must be elected at large by a plurality of votes 
at the federal general election of 2008 and at federal general 
elections every second year thereafter.[Footnote 30] The delegate will 
not be allowed to vote on legislation before the full House of 
Representatives but may be able to participate in committee processes 
at the discretion of Congress. 

* The pending legislation also requires several studies on the 
implementation of the legislation to be conducted by various federal 
agencies and other entities and submitted to Congress. The required 
reports include an administration report on the economic conditions in 
the CNMI, a DHS study on federal personnel and resource requirements, 
and a GAO assessment of the implementation of the legislation and its 
economic impact to be delivered no later than 2 years after enactment. 
DOI must also consult with DHS and the CNMI Governor and report to 
Congress on the status of the nonresident guest-worker population in 
the CNMI, including recommendations on whether Congress should consider 
permitting lawfully admitted nonresident workers to apply for long-term 
immigration status under the INA. Further, the CNMI Governor may 
provide annual reports to the President on the implementation of this 
legislation and any future recommendations, which will be forwarded to 
Congress after internal review. 

* The pending legislation federalizes the CNMI's responsibility for 
refugee protection, authorizing funding by DOI and designating DHS as 
the "protection consultant" for the CNMI.[Footnote 31] The CNMI is 
currently responsible for implementing U.S. obligations under 
international treaties that protect refugees from persecution and 
torture, and the legislation would transfer these responsibilities 
directly to the federal government.[Footnote 32] The legislation also 
allows aliens present in the CNMI to apply for discretionary asylum at 
the end of the transition period. 

* In addition, other provisions of the bill would affect aspects of 
immigrant status, including requirements that could affect a lawful 
permanent resident's ability to stay in the United States. For 
determinations of whether a lawful permanent resident has been absent 
from the United States long enough to lose the right to remain in the 
United States under federal law, presence in the CNMI will 
retroactively be considered presence in the United States and will not 
count against the resident. 

Pending Legislation Provisions for Foreign Workers: 

The pending legislation allows federal agencies to preserve access to 
foreign workers in the CNMI during the transition period but limits 
access to certain workers after the transition period ends. Under the 
transition program, employers have four key options for obtaining 
foreign workers in the CNMI. First, employers in the CNMI and Guam can 
petition for foreign workers under federal nonimmigrant H visas without 
counting against the established numerical limitations for H-1B and H- 
2B visas. Second, during the transition period, employers of workers 
not otherwise eligible for admission under federal law can apply for 
temporary CNMI-only nonimmigrant work permits, and this program may be 
extended indefinitely by the U.S. Secretary of Labor for up to 5 years 
at a time. Third, during the transition period, existing CNMI- 
government-approved foreign workers lacking U.S. immigration status can 
continue to live and work in the CNMI for a limited time. Fourth, 
during and after the transition period, CNMI employers can petition for 
nonimmigrant status and employment-based permanent immigration status 
for workers under the same procedures as other U.S. employers. However, 
access to foreign workers in low-skill positions will be limited after 
the end of the transition period in 2013 or 2014 and after any 
extensions of the CNMI-only permit program. The CNMI's exemption from 
the visa caps expires at the end of the transition period in 2013 or 
2014, and the demand for U.S. nonimmigrant worker visas has exceeded 
the capped supply in recent years. Furthermore, there are no 
nonimmigrant visas available for workers in continuous low-skill 
positions. In addition to superseding and replacing all CNMI 
immigration laws, the pending legislation eliminates any other CNMI 
laws that relate to the admission or removal of aliens, which could 
include some CNMI labor laws. Fees for the CNMI-only work permit will 
be determined by federal regulations and are not currently available. 
However, the current fees for U.S. foreign worker permits that would 
apply after the end of the transition period and after any extensions 
range higher than the CNMI's current permit fees for foreign workers. 
The pending legislation also requires a fee to be paid during the 
transition period by employers of nonimmigrant workers with CNMI-only 
permits to provide technical assistance and vocational education in the 
CNMI. 

Uncapped Nonimmigrant H Visas for Workers in the CNMI during the 
Transition Period Ending in 2013 or 2014: 

The pending legislation, in contrast to existing U.S. law, provides for 
H nonimmigrant visas for temporary workers in the CNMI during the 
transition period ending in 2013 or 2014.[Footnote 33] A qualified 
alien can seek admission to the CNMI or Guam during the transition 
period as a nonimmigrant temporary worker under the H visa process 
established in the INA without counting against the existing numerical 
caps defined by federal law.[Footnote 34] Visa holders are limited to 
working in the CNMI or Guam. Spouses and minor children of H visa 
holders can accompany the principal alien under federal law. The length 
of admission and other terms and conditions for CNMI-only H 
nonimmigrants will be determined by DHS in its implementation of the 
transition program and, according to DHS officials, will adhere to 
federal requirements currently in place for H visa holders. According 
to the current federal requirements, (1) specialty workers who are 
admitted under H-1B visas may not be authorized to stay any longer than 
3 years initially, and up to 6 years with extensions, and may not seek 
readmission for 1 year after leaving, and (2) foreign workers admitted 
under H-2B visas are authorized to stay for up to 1 year initially, and 
up to 3 years with extensions. Because the pending legislation 
authorizes exemption from federal law's numerical caps for H-1B and H- 
2B visas during the initial transition period only, the caps would 
limit the availability of new visas after the transition period ends on 
December 31, 2013, or on December 31, 2014. The numerical caps do not 
apply to foreign workers' spouses or children. 

CNMI-Only Nonimmigrant Work Permits during the Transition Period and 
Possible Extensions: 

In addition to allowing uncapped H visas during the transition period, 
the pending legislation establishes a temporary CNMI-only nonimmigrant 
work permit during the transition period to be issued to prospective 
employers for aliens not eligible for admission under the H visas or 
otherwise under federal immigration law.[Footnote 35] Temporary workers 
with CNMI-only permits are to be treated as nonimmigrants under the INA 
and, like other nonimmigrants or applicants for immigrant status from 
outside the United States, may apply for a change of status, either to 
another nonimmigrant status or to permanent residency. Workers admitted 
under a CNMI-only permit may transfer freely between CNMI employers, 
but they may not enter or work in the rest of the United 
States.[Footnote 36] 

Under the pending legislation, DHS determines the number, terms, and 
conditions of CNMI-only permits needed to meet labor demands in the 
CNMI and has full administration and enforcement authority over the 
implementation process. DHS has the discretion to use any reasonable 
method for implementing the permit system, provided that the department 
attempts to promote the maximum use of workers authorized to be 
employed in the United States and to prevent adverse effects of wages 
and working conditions on such workers. DHS may also authorize the 
admission of a spouse or minor child accompanying or following to join 
a worker admitted under a CNMI-only permit. 

The pending legislation specifies that the CNMI-only permits will not 
be valid beyond the expiration date of the transition period and 
requires that the number of permits allocated be reduced on an annual 
basis to zero by the end of the transition period. However, the U.S. 
Secretary of Labor, in consultation with DHS, DOI, and the Governor of 
the CNMI, has the discretion to extend indefinitely the period for 
issuing the permits for up to 5 years at a time, based on the labor 
needs of legitimate businesses in the CNMI.[Footnote 37] The Secretary 
could issue the extension as early as desired within the transition 
period and up to 180 days before the end of the transition period or 
any extension thereof. The determination of what constitutes a 
legitimate business,[Footnote 38] and the extent to which such business 
requires foreign workers to supplement its workforce, is at the sole 
discretion of DHS. In deciding whether to extend the period in which 
CNMI-only nonimmigrant work permits may be issued, the Secretary of 
Labor may consider workforce studies on the need for foreign workers in 
the CNMI; the unemployment rate of U.S. citizen workers residing in the 
CNMI; the number of unemployed foreign workers in the CNMI; and any 
other available evidence regarding U.S., CNMI, and foreign worker 
trends in the CNMI. 

Temporary Work and Residence for CNMI-Government-Approved Foreign 
Workers Who Do Not Obtain U.S. Immigration Status: 

Under the pending legislation, foreign workers legally present in the 
CNMI as of the transition program effective date but who do not obtain 
U.S. immigration status may continue residing and working in the CNMI 
for a limited time. Foreign workers who are legally present in the CNMI 
under CNMI immigration laws on the transition period's effective date 
are temporarily protected from removal; they may not be immediately 
removed from the country for violating the INA on the basis of being 
present without having been admitted to the United States.[Footnote 39] 
A foreign worker lawfully present under previous CNMI immigration laws 
but who does not obtain U.S. immigration status becomes subject to 
removal 2 years after the effective date of the transition program or 
when the CNMI-issued permit expires, whichever is earlier. To track the 
presence of aliens in the CNMI, the legislation allows DHS to require 
CNMI aliens to register with DHS and subjects to removal anyone who 
fails to comply with the registration requirement. The legislation also 
prohibits the CNMI government from allowing an increase in the total 
number of foreign workers who are present in the CNMI between the 
legislation's enactment and the effective date of the transition 
period. Since the 2-year clause applies to all aliens lawfully present 
in the CNMI on the transition program effective date, not just to 
foreign workers, it would cover family members of the foreign workers 
to the extent of their previously authorized admission. 

Access to Permanent Employment-Based Immigrant Visas for Foreign 
Workers: 

Under the pending legislation, when federal immigration law becomes 
applicable to the CNMI on the transition program effective date, CNMI 
employers will be able to petition to bring workers to the CNMI as 
employment-based permanent immigrants under the same procedures as 
other U.S. employers. Each fiscal year, about 140,000 employment-based 
immigrant visas are available for workers to enter the United States on 
a permanent basis. Up to 28.6 percent of these visas may be available 
for skilled nontemporary and nonseasonal workers, for professionals 
with baccalaureate degrees, and for qualified workers capable of 
performing unskilled nontemporary and nonseasonal labor for which 
qualified workers are not available in the United States. For the 
unskilled laborers, up to 10,000 visas may be issued each fiscal year 
to qualified immigrants after the Department of Labor certifies that 
qualified workers are not available in the United States. 

According to a CNMI official, CNMI employers do not currently have the 
option to petition for immigrant status of workers under CNMI law. 
While U.S. lawful permanent residents may work in the CNMI, time spent 
in the CNMI generally does not count toward the time in the United 
States required to attain U.S. citizenship. According to DHS, residence 
in the CNMI only counts as residence for naturalization purposes for 
immediate relatives of U.S. citizens; other lawful permanent residents 
residing in the CNMI currently do not accrue time for naturalization 
purposes. 

Access to Foreign Workers after the End of the Transition Period and 
after Any Extensions: 

After the end of the transition period and after any extensions of the 
CNMI-only work permit program, the pending legislation limits CNMI 
employers' access to foreign workers, particularly low-skill workers in 
continuous, nontemporary jobs. However, all INA immigrant and 
nonimmigrant categories would be available to qualified foreign workers 
attempting to enter the CNMI. After the transition period and after any 
extensions, the CNMI-only work permits can no longer be issued and are 
no longer in effect. In addition, the exemptions from the H visa caps 
no longer apply after the initial transition period ending in 2013 or 
2014. Foreign workers applying for H nonimmigrant status are then 
subject to the numerical limitations set out in federal law, and demand 
for the H-1B and H-2B visas has exceeded the capped supply in recent 
years.[Footnote 40] H-2A visas are not capped and would be available 
for agricultural workers. However, no nonimmigrant visa categories are 
available for workers performing continuous, rather than temporary, 
work who do not meet the high-skill requirements of the H-1 visas. Some 
workers can apply for L visas for intracompany transfers, but these 
visas are available only to managers and executives, workers with 
specialized skills, and their spouses and children, and L visa holders 
must have spent at least 1 continuous year abroad with a qualifying 
organization prior to entering the United States. These options 
contrast with the CNMI government's current authority to admit as many 
foreign workers as its own laws and administrative procedures permit 
and with the CNMI-only work permit that the pending legislation 
establishes during the transition period and any extensions. 

Changes in Worker Permit Fees during and after the Transition Period: 

The pending legislation changes permit fees for foreign workers and may 
increase annual fees for some employers and workers. Fees for the 
transition period programs will be determined by federal regulations 
and are currently not available. The CNMI-only work permit fee includes 
$150 paid by employers annually to fund vocational education in the 
CNMI, but we do not know how the full fee will compare to the current 
CNMI foreign worker permit fee of $250 per year.[Footnote 41] In 
addition, after the end of the transition period and after any 
extensions of the CNMI-only work permit program, standard U.S. fees 
would apply, including Department of Labor fees for labor 
certification, DHS petition fees paid by the employer, and Department 
of State visa fees paid by the worker. The current fees for U.S. 
foreign worker permits that would apply after the end of the transition 
period and any extensions range higher than the CNMI's current permit 
fees for foreign workers. Existing U.S. fees for H visa petitions range 
from $107 to $773 per year[Footnote 42] (see app. III).[Footnote 43] 
Required bond costs for employers currently vary under CNMI law, but 
one option is for employers to pay $75 per worker into a revolving 
trust account. U.S. laws provide discretionary federal authority to 
impose bonds of between $5 and $15 per worker on employers or $500 on 
the alien.[Footnote 44] The legislation also authorizes DHS to charge 
fees to recover the full cost of providing adjudication and 
naturalization services, including any administrative costs. The U.S.- 
CNMI covenant currently allows the CNMI government to collect fees 
levied for quarantine, passport, and immigration and naturalization 
services. The pending legislation would remove the CNMI's ability to 
collect fees for immigration and naturalization. 

Possible Elimination of Some CNMI Labor Laws: 

Under the pending legislation, federal immigration law will supersede 
all CNMI immigration law. In addition, federal law would preempt some 
CNMI labor laws if the CNMI laws are determined to relate to the 
admission or removal of aliens. Because the intent of the legislation 
is to supersede all laws relating to the admission or removal of 
aliens, if local labor laws relate to the admission or removal of 
aliens, such laws will no longer be in effect. The CNMI's Office of the 
Governor concluded that the proposed federal legislation would preempt 
most of the CNMI laws establishing new immigration and labor rules that 
took effect on January 1, 2008. For example, as referenced above, the 
CNMI's bond requirement would presumably be preempted by any bond 
requirements already present in federal immigration law. Additionally, 
CNMI requirements to pay repatriation funds for foreign workers would 
be preempted by federal law requirements to pay repatriation funds for 
nonimmigrant workers. In the agricultural sector, CNMI laws that apply 
to foreign agricultural workers would be replaced by federal 
requirements for the admission and treatment of H-2A workers or other 
relevant federal laws. Under federal law, employers of temporary 
agricultural workers must provide housing for the workers that meet 
certain federal requirements, insurance for the workers that covers 
injury or disease related to employment, three meals a day, and all 
necessary tools and equipment to perform the required labor. CNMI law 
requires that employers provide medical insurance to foreign workers 
and gives employers the option to provide additional benefits, such as 
housing, food, and transportation. 

Other CNMI laws that are administered as part of the CNMI's permit 
program also might be affected because the CNMI's permit program will 
be replaced with federal law, and it is unclear whether these CNMI 
programs will continue to be administered. For example, a CNMI law 
requiring notice and orientation procedures for nonresident workers 
admitted to the CNMI, as well as laws requiring that employers of 
nonresident workers provide mandatory medical insurance to their 
employees and provide mediation procedures in the case of contract 
disputes, have no counterpart in the pending federal legislation. It is 
unknown whether these existing requirements would be administered after 
federalization. In addition, existing CNMI agreements with China and 
the Philippines regarding the treatment of those countries' workers in 
the CNMI could be affected by the pending legislation. After federal 
immigration law applies, it is unclear whether the agreements would be 
adhered to or would be superseded. 

In addition, local CNMI law contains specific provisions for the hiring 
of local residents, while the federal legislation contains no set 
requirements for hiring a certain percentage of citizens. Under CNMI 
law, until January 2008, employers were required to hire 20 percent of 
their employees from local residents; this percentage increased to 30 
percent on January 1, 2008, under the new CNMI labor and immigration 
law. CNMI law also stipulates that employers seeking work permits for 
their temporary workers must be able to demonstrate that they 
advertised the position and were unable to find a qualified CNMI 
resident. Exemptions from this requirement can be granted for 
businesses that employ fewer than 5 people, construction projects of 
limited duration, light manufacturing, and for employers who fill other 
full-time positions with substantially more than 30 percent of the 
workforce from citizens and permanent residents. Under the federal 
immigration system, no percentage requirement exists for the hiring of 
local residents. However, federal immigration law requires that 
employers seeking to fill jobs with applicants for H-2B visas must 
demonstrate that they have been unable to identify a qualified U.S. 
worker for the position. Similarly, employers of H-2A applicants must 
certify through the Department of Labor that sufficient U.S. workers 
cannot be found to perform the labor and that the employment of the 
foreign worker will not adversely affect the wages and working 
conditions of similarly employed U.S. workers. However, without 
regulations implementing the pending legislation, it is unknown whether 
the CNMI-only work permit program will include requirements related to 
U.S. workers. 

Vocational Education Funding and Technical Assistance for the CNMI: 

The pending federal legislation requires the U.S. government to provide 
funding for vocational education, as well as technical assistance for 
the CNMI. 

* Vocational education. The legislation requires DHS to charge 
prospective employers $150 annually, in addition to other fees 
collected under the INA, for each CNMI nonimmigrant worker who is 
issued a CNMI-only permit during the transition period and any 
extensions. The fee is to be paid into the Treasury of the CNMI and 
used to fund ongoing vocational, educational curricula and program 
development by CNMI educational entities. 

* Technical assistance. The legislation requires the Secretary of the 
Interior to provide technical assistance to the CNMI to promote 
economic growth; to assist employers in recruiting, training, and 
hiring U.S. citizens and lawful permanent residents in the CNMI; and to 
develop CNMI job skills as needed. In providing the technical 
assistance, the federal government should consult with the CNMI 
government, local businesses, regional banks, and other CNMI economy 
experts. The CNMI must contribute a nonfederal matching requirement of 
10 percent for the provision of technical assistance. 

* Hiring U.S. citizens in the CNMI. In addition to requiring the 
technical assistance, the pending legislation states that the federal 
government should, to the maximum extent practicable, hire citizens of 
the CNMI as staff to implement the transition program and new federal 
responsibilities. 

Pending Legislation Provisions for Tourists: 

The pending legislation establishes a joint visa waiver program by 
adding the CNMI to an existing Guam visa waiver program. The program 
exempts visitors from designated countries who travel for business or 
pleasure to the CNMI from the standard federal visa documentation 
requirements. Citizens of countries who do not qualify for entry under 
the joint CNMI and Guam visa waiver program or other U.S. visa waiver 
programs may apply for U.S. visitor visas valid for entry to any part 
of the United States, which generally require in-person applications 
and higher fees than the CNMI currently assesses. Changes in tourists' 
access to the CNMI will depend on the countries that are included in 
the CNMI-Guam visa waiver program. Until the regulations implementing 
the joint visa waiver program are established, we cannot determine 
whether the new visa waiver program will be more or less restrictive 
than the current CNMI or Guam waiver programs. 

Visa Waiver Program for Tourism or Business: 

The pending federal legislation creates a joint visa waiver program for 
business or pleasure for 45 days or less, exempting visitors from 
participating countries who travel to the CNMI and Guam from the 
standard federal visa documentation requirements for 
nonimmigrants.[Footnote 45] Under the pending legislation, DHS may 
waive the documentation requirements for nationals from designated 
foreign countries applying to visit for business or pleasure for a 
period of up to 45 days.[Footnote 46] Admission would be granted only 
for entry into, and stay in, the CNMI or Guam, and visitors will be 
able to travel between the CNMI and Guam. The pending legislation 
allows DHS to waive the documentation requirements after consulting 
with other federal agencies and the Governors of the CNMI and Guam; 
determining that an adequate arrival and departure system has been 
developed in both places; and determining that the waiver would not 
represent a threat to the welfare, safety, or security of the United 
States or its territories. 

Apart from the CNMI-Guam visa waiver program proposed under the federal 
legislation, the U.S. Visa Waiver Program, the current Guam visa waiver 
program, and the current CNMI entry permit waiver program have the 
following requirements: 

* The current U.S. Visa Waiver Program under federal immigration law 
allows nationals and citizens of 27 countries to travel to the United 
States, including Guam, for business or tourism for 90 days or less 
without obtaining a visa. Travelers admitted under the U.S. Visa Waiver 
Program must be nationals of a participating country, each of which 
must provide reciprocal privileges to U.S. nationals and citizens and 
meet other requirements.[Footnote 47] 

* Guam's federally-administered visa waiver program allows citizens of 
an additional 9 countries to enter Guam for up to 15 days for business 
or pleasure.[Footnote 48] In total, citizens of 36 countries may enter 
Guam under its visa waiver program. 

* The CNMI's entry permit waiver program exempts aliens seeking to 
enter for tourism or business for up to 90 days from the required 
visitor entry permit if the aliens are eligible for the U.S. Visa 
Waiver Program or are nationals of a country listed by the CNMI as 
exempt. The list of countries is revised periodically by the CNMI 
Attorney General and contains all the countries in the U.S. Visa Waiver 
Program.[Footnote 49] 

See appendix IV for countries included in the current U.S., CNMI, and 
Guam waiver programs. 

To implement the CNMI-Guam visa waiver program, DHS must consult with 
other appropriate federal agencies and promulgate regulations within 
180 days of enactment of the proposed legislation. The regulations must 
include a list of all countries whose nationals may obtain the visa 
waiver. This list must include any country from which the CNMI has 
received a significant economic benefit for the year prior to the 
enactment of the legislation, unless DHS determines that the country's 
inclusion on the list would represent a threat to the welfare, safety, 
or security of the United States or its territories. The Governors of 
the CNMI and Guam may petition DHS to have countries added to the visa 
waiver program list. The regulations must also include any bonding 
requirements for nationals of some or all of the countries who may 
present an increased risk of overstays or other potential problems, if 
those requirements are different from those generally applicable to 
nonimmigrants under the INA. DHS is required to monitor the admission 
of nonimmigrant visitors to the CNMI and Guam and has the authority to 
suspend a particular country from the visa waiver program.[Footnote 50] 

DHS's consideration of countries from which the CNMI has received a 
significant economic benefit for the previous year could result in the 
inclusion in the visa waiver program of key countries that have sent 
tourists to the CNMI. However, without the regulations implementing the 
CNMI-Guam visa waiver program, we cannot determine whether this program 
will be more or less restrictive than the current CNMI entry permit 
waiver program or the Guam visa waiver program, nor can we determine 
which countries' citizens would be required to obtain visitor visas. In 
addition, any changes to the U.S. Visa Waiver Program could also affect 
tourists' access to the CNMI. 

Visitor Visas Available outside the Visa Waiver Programs: 

Under the pending legislation, citizens of countries who do not qualify 
for entry under the proposed CNMI-Guam visa waiver program may apply 
for a nonimmigrant visitor visa for either business or pleasure, known 
as a B visa. B visas are valid for entry into any part of the United 
States. The period of validity for B visas depends on federal 
regulations specific to the applicant's home country, as well as the 
reciprocal treatment that the home country provides to U.S. citizens 
traveling to that country. The validity period for B visas varies. 
Aliens may apply for admission at any time during the validity period 

to be admitted for up to 1 year and are typically admitted for 6 months 
at a time. Under the U.S. program, most visitor visa applicants must 
apply in person at a U.S. embassy or consulate. In addition, applicants 
for all nonimmigrant visas may be required to submit to a physical or 
mental examination at the discretion of the consular officer reviewing 
the application. 

The CNMI has its own visitor entry permit process, which currently 
allows noncitizens not eligible under its entry permit waiver program 
to apply for a short-term entry permit valid for 30 days or a long-term 
entry permit valid for up to 60 days. Most visitors coming to the CNMI 
for business or pleasure with a visitor entry permit must have a CNMI 
sponsor, such as an individual or a hotel, which is not required of 
visitors entering the United States on a B visa. In addition, Japanese, 
Korean, and certain other tourists ages 55 and above may enter for up 
to 90 days under a comity entry permit.[Footnote 51] Currently, 
citizens of 31 countries are excluded from entering the CNMI, but they 
can be granted waivers on a case-by-case basis.[Footnote 52] This 
program would be eliminated by the pending legislation, and visitors 
seeking to enter the CNMI for business or pleasure could apply for a 
U.S. nonimmigrant B visa or could enter under the CNMI-Guam visa waiver 
program established by the legislation, if applicable. 

Given the requirements for U.S. visitor visas, and depending on the 
countries included in the CNMI-Guam visa waiver program, the pending 
legislation could change access to the CNMI for visitors from some 
countries. For example, some tourists currently come to the CNMI from 
China[Footnote 53] and Russia. Tourists' access to the CNMI would 
depend, in part, on whether their countries were included in the CNMI- 
Guam visa waiver program under the pending legislation. While China and 
Russia are not currently included in the CNMI's entry permit waiver 
program, the CNMI allows applicants from these and other countries to 
apply for a visitor entry permit by mail or fax. In addition, according 
to the CNMI government, information on visitor permit applicants from 
China is collected and reviewed by the CNMI under the Electronic 
Visitor Entry Permit Program. Most applicants would now be required to 
apply in person at a U.S. embassy or consulate, some of which have 
interview appointment wait times of 30 days or longer. They also would 
pay at least $131 for a U.S. visitor visa, while most CNMI visitor 
entry permits are provided for free. In addition, visitors from the 
Republic of Korea who are ages 55 and above and meet other requirements 
currently may enter the CNMI for up to 90 days under a comity entry 
permit. The Republic of Korea is not currently included in the U.S. 
Visa Waiver Program,[Footnote 54] and citizens' access to the CNMI will 
depend in part on whether the country is included in the joint CNMI- 
Guam waiver program. 

Pending Legislation Provisions for Foreign Investors: 

After federal immigration law applies, new CNMI foreign investors must 
meet more stringent investment requirements in order to obtain 
immigrant investor status, which allows investors to petition for U.S. 
permanent immigration status that is currently unavailable in the CNMI. 
New foreign investors also could apply for nonimmigrant treaty investor 
status. The pending legislation also allows current CNMI foreign 
investors who meet certain requirements to convert from a CNMI investor 
to a federal nonimmigrant treaty investor during the transition period. 
However, key details regarding the transition period program remain 
unknown. In addition, the pending legislation eliminates the CNMI's 
retiree investor and long-term business entry permit programs. Instead, 
it allows these and other business travelers to apply to visit the CNMI 
under the terms for general visitors described above or under other 
categories in federal immigration law. 

More Stringent Investment Requirements for Immigrant Foreign Investors: 

After federal immigration laws apply, new foreign investors in the CNMI 
would have to meet the more stringent investment requirements imposed 
by federal law in order to be awarded immigrant investor status (EB-5). 
Under federal immigration law, foreign investor immigrant status 
generally requires the establishment of a business creating at least 10 
full-time jobs and an investment of at least $1 million.[Footnote 55] 
However, U.S. investment requirements vary depending on the employment 
level in the area of investment; if the CNMI were considered a targeted 
employment area, the minimum investment required would be 
$500,000.[Footnote 56] According to DHS, qualification under the EB-5 
program provides U.S. lawful permanent resident status after a 2-year 
period of conditional status and after demonstration of the required 
job creation. 

In contrast, current CNMI law grants foreign investor status to 
qualified investors to engage in business in the CNMI for as long as 
they maintain an investment of at least $250,000 by an individual in a 
single investment or $100,000 per person in an aggregate investment 
exceeding $2 million.[Footnote 57] An applicant must be present in the 
CNMI to apply. The CNMI also considers the length of time the business 
is expected to operate, the number and type of jobs it would create, 
the extent to which it would employ nonresidents, its impact on power 
and water resources, and other factors. While the CNMI status requires 
a lower investment than the U.S. EB-5 program, it does not allow aliens 
to petition for permanent immigration status in the United States, as 
does the EB-5. 

The U.S. immigrant investor petition has a fee of $1,435, plus a $131 
visa application fee, and visa issuance fees that vary by country. The 
CNMI long-term business entry permit fee is $1,000, and the permit is 
valid for 2 years. The CNMI investor permit has a one-time fee ranging 
from $500 to $2,500, in addition to a one-time investment certificate 
fee of $10,000. (See app. III.) 

As an alternative to applying for U.S. immigrant investor status, new 
investors could apply for U.S. nonimmigrant treaty investor status (E- 
2). Under this status, an alien may enter the United States to develop 
and direct the operations of an enterprise in which he or she has 
invested or is in the process of investing a substantial amount of 
capital.[Footnote 58] This category requires that the investor be a 
national of a country that has an appropriate treaty with the United 
States.[Footnote 59] Though a specific financial threshold is not 
required by law, the capital must be substantial in relation to either 
the total purchase price or the cost of creation of the enterprise, 
must be sufficient to ensure the investor's financial commitment to 
successful operation of the enterprise, and must be of a magnitude to 
support the likelihood that the investor will successfully develop and 
direct the enterprise.[Footnote 60] However, this status does not 
provide a path to apply for permanent resident status. 

Grandfathered Status for Foreign Investors during the Transition 
Period: 

The pending legislation allows current CNMI foreign investors to remain 
in the CNMI as investors after the start of the transition period by 
authorizing DHS to provide CNMI-only nonimmigrant E-2 treaty investor 
status to those who have been admitted to the CNMI in long-term 
investor status under CNMI immigration laws before the start of the 
transition program. These "grandfathered" foreign investors attaining 
CNMI-only nonimmigrant status would not have to meet the federal treaty 
requirements for E-2 nonimmigrant foreign investor status during the 
transition period. In order to be grandfathered, the investor must have 
continuously maintained residence in the CNMI under long-term investor 
status, must be otherwise admissible, and must maintain the investment 
that formed the basis for such long-term investor status.[Footnote 61] 
It is not clear whether the grandfathered status would cover current 
holders of the CNMI's long-term business permit, which requires an 
investment of at least $150,000 in a public organization or at least 
$250,000 in a private investment, in addition to current holders of the 
CNMI foreign investment permit. The legislation is silent on the length 
of time for which admission is authorized as a CNMI-only treaty 
investor, and it requires DHS to promulgate implementing regulations 60 
days before the start of the transition program. Currently, federal law 
allows E admission for up to a 2-year period of initial stay and allows 
the investor to apply for renewal. Under federal regulations for E-2 
visas, spouses or children may apply to join foreign investors under 
the E-2 visa, and spouses are authorized to work under an E-2 visa. 
Though regulations must first be developed for implementation, 
according to DHS, the regulations would likely create a new kind of E- 
2 visa applicable only to these grandfathered foreign investors that 
would include the CNMI financial threshold requirements for investment. 

Elimination of CNMI Retiree Investor and Long-Term Business Permit 
Programs: 

Two other CNMI investor programs would be eliminated by the pending 
legislation. One of these programs is the CNMI's current retiree 
investor entry permit, which has no equivalent under U.S. law. To 
qualify for the permit and corresponding certificate, an applicant must 
be older than 55 years and must have a minimum investment of $100,000 
(or $75,000 on the islands of Tinian or Rota) in residential property, 
among other requirements. In addition, the CNMI's long-term business 
entry permit, which allows individuals investing at least $150,000 in a 
public organization or at least $250,000 in a private investment and 
whose business activities have been approved and certified by the CNMI 
Secretary of Commerce to enter and exit the CNMI for 2 years, would be 
eliminated by the application of federal immigration laws. Nonimmigrant 
investors would instead be able to apply for the U.S. E-2 treaty 
investor visa.[Footnote 62] As noted above, it is not clear whether 
current holders of the CNMI's long-term business permit would be 
grandfathered as treaty investors. In addition, under federal law, 
other business travelers could no longer enter under any CNMI permit 
category but could seek admission under an appropriate federal 
nonimmigrant visa or visa waiver. 

DHS May Study the Creation of CNMI-Only Visas for Foreign Investors and 
Other Nonworkers: 

The pending federal legislation allows the Governors of the CNMI and 
Guam to request that DHS study the feasibility of creating additional 
CNMI-or Guam-only nonimmigrant visas to address needs not otherwise met 
by the legislation. These visas may include special nonimmigrant visa 
categories for investors and retirees. The visas also may include visa 
categories for students;[Footnote 63] however, they may not include 
nonimmigrant status for workers in the CNMI or Guam. If DHS found that 
such additional visas were necessary, it would have to ask Congress to 
authorize their creation. 

Agency Comments and Our Evaluation: 

We provided a draft of this report to officials within the U.S. 
Departments of Homeland Security, the Interior, and Labor and within 
the CNMI government for review and comment. We received written 
comments on the draft report from the Department of Homeland Security, 
the Department of the Interior, and the CNMI government, which are 
reprinted in appendixes VI, VII, and VIII. We also received technical 
comments from the Department of Homeland Security, the Department of 
the Interior, and the CNMI government. We incorporated their comments 
as appropriate. The Department of Labor had no comments. We also 
provided a draft for technical review to the U.S. Department of State, 
and State had no comments. The Departments of Homeland Security and the 
Interior generally agreed with our findings regarding the pending 
legislation. The CNMI government disagreed with some key findings 
related to the pending legislation. 

The Department of Homeland Security commented that aliens in the CNMI 
could seek protection from persecution or torture, saying that the 
department is mindful of U.S. government treaty obligations during the 
transition period. While we had included information on this topic in 
the draft report, we further clarified the information in response to 
the department's comments. The department also noted that the pending 
legislation would have direct effects on U.S. Customs and Border 
Protection facilities, staffing, and training requirements. This topic 
was beyond the scope of our study. 

The Department of the Interior generally agreed with our findings, 
saying that the report presents a fair and objective study on the 
effect of the pending legislation. 

The CNMI government disagreed with our analysis of the legislation in 
three particular areas. First, the CNMI government contended that the 
legislation allows the exemptions from the numerical limitation on H 
visas to be extended beyond the end of the transition period in 2013. 
We continue to interpret the legislation to allow for an extension of 
the CNMI-only work permit program beyond 2013 at the discretion of the 
Secretary of Labor but not to allow for an extension beyond 2013 of 
other provisions of the transition program, including the exemptions 
from the numerical limitations on H visas.[Footnote 64] Because the 
provision of the pending legislation authorizing exemptions from the H 
visa caps for aliens entering the CNMI confers no specific authority 
for extending this exemption beyond 2013, nor does any other related 
provision confer this authority, the exemption could not be extended 
beyond 2013 without further legislation. Second, the CNMI disagreed 
with our interpretation that the H visas issued under the cap 
exemptions are a separate process from the CNMI-only work permit 
program. According to the CNMI's interpretation, employers of workers 
admitted under H visas would have to obtain a CNMI-only work permit. We 
continue to interpret the H visa cap exemptions and the CNMI-only 
permit program as separate processes, because the CNMI-only work 
permits are to be issued for workers who would not otherwise be 
eligible for admission under U.S. immigration law. As H visas are 
clearly a part of U.S. immigration law, workers entering the CNMI with 
an H visa are necessarily excluded from the CNMI-only permit process, 
as are workers entering under all other available immigrant and 
nonimmigrant categories in U.S. immigration law. Third, the CNMI 
contended that we should not base any further work regarding the impact 
of the legislation on the CNMI economy on a single legal 
interpretation. While the legislation is highly technical, we believe 
we have provided a reasonable, objective interpretation of the 
legislation that is consistent with the implementing agencies' views. 
As such, we believe our interpretation of the legislation can be used 
appropriately as the basis of further work on the potential economic 
impact of the legislation, while acknowledging the range of possible 
federal decisions regarding implementation of the legislation. 
Officials from the Department of Homeland Security, the agency 
responsible for implementing and administering the provisions of the 
transition period under the pending legislation, agreed in interviews 
with our interpretations of the above provisions. The CNMI government 
also recommended that the draft report be provided to the U.S. 
Department of Justice for comment. We did not provide the draft report 
to the Department of Justice for review because the pending legislation 
provides a limited role for the department. 

As agreed with your offices, unless you publicly announce the contents 
of this report earlier, we plan no further distribution of it until 30 
days from the report date. We will then provide copies of this report 
to the U.S. Secretaries of Homeland Security, the Interior, Labor, and 
State, and to the Governor of the CNMI. We will make copies available 
to others on request. In addition, the report will be available at no 
charge on the GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staffs have questions about this report, please contact 
me at (202) 512-3149 or at [email protected]. Contact points for our 
Offices of Congressional Relations and Public Affairs may be found on 
the last page of this report. GAO staff who made key contributions to 
this report are listed in appendix IX. 

Signed by: 

David Gootnick: 

Director, International Affairs and Trade: 

[End of section] 

Appendix I: Scope and Methodology: 

To complete our work, we reviewed current immigration laws of the 
Commonwealth of the Northern Mariana Islands (CNMI), U.S. immigration 
law, and pending legislation that would apply U.S. immigration law to 
the CNMI. To examine CNMI immigration law, we reviewed relevant 
portions of the Nonresident Workers Act, the Northern Mariana Islands 
Administrative Code, the Commonwealth Employment Act of 2007, and 
related regulations, as well as other immigration and labor laws and 
agreements. We did not review all CNMI laws and regulations. Our 
discussion of CNMI laws and regulations was based in part upon 
secondary sources, including information provided by CNMI officials. We 
also visited the CNMI, where we interviewed officials in the CNMI 
Office of the Governor, the Department of Immigration, the Department 
of Labor, the Department of Commerce, and the Marianas Visitors 
Authority. We conducted additional interviews with CNMI officials in 
Washington, D.C. In addition, we reviewed CNMI agreements with other 
countries, including China and the Philippines, regarding foreign 
workers. We also reviewed CNMI documents explaining immigration laws 
and procedures to non-U.S. citizens. 

To examine U.S. immigration law, we reviewed the U.S. Immigration and 
Nationality Act (INA) and related regulations.[Footnote 65] We also 
interviewed U.S. Department of Homeland Security officials, and we 
reviewed information from the U.S. Department of State and U.S. 
Citizenship and Immigration Services related to visa and petition 
application fees and procedures. We did not review the extent to which 
CNMI or U.S. laws were properly enforced or implemented. 

To examine the relationship between the CNMI and the United States, we 
reviewed the CNMI-U.S. Covenant[Footnote 66] and the law applying U.S. 
minimum wage to the CNMI.[Footnote 67] We also reviewed proposed 
legislation applying U.S. immigration law to the CNMI, including H.R. 
3079, passed by the House of Representatives, and S. 2739, pending in 
the Senate. In addition, we reviewed the House Committee on Natural 
Resources Report for H.R. 3079.[Footnote 68] We interviewed officials 
from the U.S. Department of Homeland Security and the U.S. Department 
of the Interior. We also reviewed analyses of the pending legislation 
and related studies by GAO, the Congressional Budget Office, and the 
Congressional Research Service. 

We conducted this performance audit from December 2007 to March 2008 in 
accordance with generally accepted government auditing standards. Those 
standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe that 
the evidence obtained provides a reasonable basis for our findings and 
conclusions based on our audit objectives. 

[End of section] 

Appendix II: U.S. Nonimmigrant Classes of Admission: 

Foreign nationals seeking to enter the United States temporarily may 
apply for entry under the following classes of admission: 

Table: 

Class: Transit aliens: C-1; 
Description: Aliens in continuous and immediate transit through the 
United States. 

Class: Transit aliens: C-2; 
Description: Aliens in transit to the United Nations Headquarters 
District. 

Class: Transit aliens: C-3; 
Description: Foreign government officials, attendants, servants, and 
personal employees, and spouses and children in transit. 

Class: Temporary visitors for business: B-1; 
Description: Temporary visitors for business. 

Class: Temporary visitors for business: GB; 
Description: Visa Waiver Program--temporary visitors for business to 
Guam. 

Class: Temporary visitors for business: WB; 
Description: Visa Waiver Program--temporary visitors for business. 

Class: Temporary visitors for pleasure: B-2; 
Description: Temporary visitors for pleasure. 

Class: Temporary visitors for pleasure: GT; 
Description: Visa Waiver Program--temporary visitors for pleasure to 
Guam. 

Class: Temporary visitors for pleasure: WT; 
Description: Visa Waiver Program--temporary visitors for pleasure. 

Class: Temporary workers and trainees: H-1B1; 
Description: Chile and Singapore Free Trade Agreement Aliens. 

Class: Temporary workers and trainees: H-1C; 
Description: Nurses under the Nursing Relief for Disadvantaged Areas 
Act of 1999. 

Class: Temporary workers and trainees: H-2A; 
Description: Seasonal agricultural workers. 

Class: Temporary workers and trainees: H-2B; 
Description: Seasonal nonagricultural workers. 

Class: Temporary workers and trainees: H-2R; 
Description: Returning H-2B workers. 

Class: Temporary workers and trainees: H-3; 
Description: Trainees. 

Class: Temporary workers and trainees: H-4; 
Description: Spouses and children of H-1, H-2, or H-3 visa holders. 

Class: Temporary workers and trainees: O-1; 
Description: Temporary workers with extraordinary ability or 
achievement in the sciences, arts, education, business, or athletics. 

Class: Temporary workers and trainees: O-2; 
Description: Temporary workers accompanying and assisting O-1 visa 
holders. 

Class: Temporary workers and trainees: O-3; 
Description: Spouses and children of O-1 and O-2 visa holders. 

Class: Temporary workers and trainees: P-1; 
Description: Temporary workers--internationally recognized athletes or 
entertainers for a specific competition or performance. 

Class: Temporary workers and trainees: P-2; 
Description: Temporary workers--artists or entertainers under 
reciprocal exchange programs with a similar organization of a foreign 
state. 

Class: Temporary workers and trainees: P-3; 
Description: Temporary workers--artists or entertainers under 
culturally unique programs. 

Class: Temporary workers and trainees: P-4; 
Description: Spouses and children of P-1, P-2, or P-3 visa holders. 

Class: Temporary workers and trainees: Q-1; 
Description: Temporary workers in international cultural exchange 
programs. 

Class: Temporary workers and trainees: R-1; 
Description: Temporary workers in religious occupations. 

Class: Temporary workers and trainees: R-2; 
Description: Spouses and children of R-1 visa holders. 

Class: Temporary workers and trainees: TN; 
Description: North American Free Trade Agreement (NAFTA) professional 
workers. 

Class: Temporary workers and trainees: TD; 
Description: Spouses and children of TN visa holders. 

Class: Treaty traders and investors: E-1; 
Description: Treaty traders and spouses and children. 

Class: Treaty traders and investors: E-2; 
Description: Treaty investors and spouses and children. 

Class: Treaty traders and investors: E-3; 
Description: Australian Free Trade Agreement principals and spouses and 
children. 

Class: Intracompany transferees: L-1; 
Description: Intracompany transferees. 

Class: Intracompany transferees: L-2; 
Description: Spouses and children of L-1 visa holders. 

Class: Representatives of foreign information media: I-1; 
Description: Representatives of foreign information media and spouses 
and children. 

Class: Representatives of foreign information media: Students; 
Description: [Empty]. 

Class: F-1; 
Description: Students--academic institutions. 

Class: F-2; 
Description: Spouses and children of F-1 visa holders. 

Class: F-3; 
Description: Canadian or Mexican national commuter students--academic 
institutions. 

Class: M-1; 
Description: Students--vocational/nonacademic institutions. 

Class: M-2; 
Description: Spouses and children of M-1 visa holders. 

Class: M-3; 
Description: Canadian or Mexican national commuter students--
vocational/nonacademic institutions. 

Class: Exchange visitors. 

Class: J-1; 
Description: Exchange visitors. 

Class: J-2; 
Description: Spouses and children of J-1 visa holders. 

Class: Other categories. 

Class: A-1; 
Description: Ambassadors, public ministers, career diplomatic or 
consular officers, and spouses and children. 

Class: A-2; 
Description: Other foreign government officials or employees and 
spouses and children. 

Class: A-3; 
Description: Attendants, servants, or personal employees of A-1 and A-2 
visa holders and spouses and children. 

Class: FSM; 
Description: Federated States of Micronesia nationals. 

Class: G-1; 
Description: Principal resident representatives of recognized foreign 
member governments to international organizations, staff, and spouses 
and children. 

Class: G-2; 
Description: Temporary representatives of recognized foreign member 
governments to international organizations and spouses and children. 

Class: G-3; 
Description: Representatives of unrecognized or nonmember foreign 
governments to international organizations and spouses and children. 

Class: G-4; 
Description: Officers or employees of unrecognized international 
organizations and spouses and children. 

Class: G-5; 
Description: Attendants, servants, or personal employees of G-1, G-2, G-
3, or G-4 visa holders and spouses and children. 

Class: K-1; 
Description: Alien fiancï¿½s(ees) of U.S. citizens. 

Class: K-2; 
Description: Children of K-1 visa holders. 

Class: K-3; 
Description: Alien spouses of U.S. citizens. 

Class: K-4; 
Description: Children of K-3 visa holders. 

Class: MIS; 
Description: Republic of the Marshall Islands nationals. 

Class: N-1 to N-7; 
Description: North Atlantic Treaty Organization (NATO) aliens, spouses, 
and children. 

Class: N-8; 
Description: Parents of international organization special immigrants. 

Class: N-9; 
Description: Children of N-8 visa holders or international organization 
special immigrants. 

Class: PAL; 
Description: Republic of Palau nationals. 

Class: Q-2; 
Description: Irish Peace Process Cultural and Training Program aliens. 

Class: Q-3; 
Description: Spouses and children of Q-2 visa holders. 

Class: T-1 to T-5; 
Description: Victims of a severe form of trafficking and spouses, 
children, parents, and siblings. 

Class: U-1 to U-4; 
Description: Aliens suffering physical or mental abuse as victims of 
criminal activity and spouses, children, and parents. 

Class: V-1 to V-3; 
Description: Spouses and children of a lawful permanent resident who 
has been waiting 3 years or more for immigrant visas and dependents. 

[End of table] 

Source: U.S. Department of Homeland Security. 

[End of section] 

Appendix III U.S. and CNMI Fees for Foreign Workers, Tourists, and 
Foreign Investors: 

Table 1: : 

Foreign workers (fees paid by employers); U.S. fee: * Specialty workers 
(H-1B): $320 to $2,320 for petition (range includes supplemental fees 
of $750 or $1,500 and fraud prevention fee of $500 required for some 
petitions); associated visa typically valid for up to 3 years; * 
Agricultural (H-2A): $320 for petition and $100 plus $10 for each 
additional worker for DOL labor certification (to a maximum of $1,000); 
associated visa typically valid for 1 year; * Non-agricultural (H-2B): 
$470 for petition ($320 plus $150 fraud prevention fee); associated 
visa valid for up to 1 year; CNMI fee: * Foreign worker (706K): $250 
per year; Transition period fee: * $150 fee paid annually by employers 
under CNMI-only visa to fund vocational education in the CNMI; * Other 
fees for CNMI-only permit to be determined by federal regulations; * 
U.S. fees that apply to existing federal programs. 

Tourists (fees paid by tourists); U.S. fee: * Temporary visitor for 
business (B-1), pleasure (B-2), or combined (B1-B2): generally, $131 
visa application fee, and visa issuance fees varying by country; valid 
for periods ranging from 1 to 10 years; * Visa waiver: no fee or small 
fee for arrivals at land borders; valid for up to 90 days; CNMI fee: * 
Tourist (703A): no fee or $100 if submitted 7 days or less from 
intended arrival; valid for up to 30 days; * Entry permit waiver: no 
fee; valid for up to 90 days; Transition period fee: * U.S. fees that 
apply to existing federal visas. 

Foreign investors (fees paid by investors); U.S. fee: * Immigrant 
investor status: fee of $1,435 for initial petition, plus $131 visa 
application fee, and visa issuance fees varying by country; * Treaty 
investor (E-2): $320 for up to 2 years, plus $131 visa application fee, 
and visa issuance fees varying by country; CNMI fee: * Foreign investor 
(706G): one-time permit fee ranging from $500 to $2,500, depending on 
investment level, and one-time certificate fee of $10,000; * Long-term 
business (706N): $1,000; valid for 2 years; Transition period fee: * 
CNMI-only E-2 visa requirements to be determined by federal 
regulations; * U.S. fees that apply to existing federal petitions and 
visas. 

[End of table] 

Source: GAO analysis of pending legislation and information from the 
U.S. Department of Homeland Security, U.S. Department of Labor, U.S. 
Department of State, and the CNMI government. 

Note: This table includes only petition fees and some visa or permit 
application fees, as of January 2008. U.S. fees include Department of 
Homeland Security petition fees, Department of State visa fees, and 
Department of Labor fees for labor certification. Some fees may be 
waived. The table omits renewal and status adjustment fees; biometric 
fees; fees for expedited service; user fees, such as immigration 
inspection fees included in the cost of airline tickets; and legal 
costs. H-1B petition renewal fees are generally the same as the initial 
petition fees; however, the $500 fraud prevention and detection fee is 
required only the first time a petitioner files for a worker. The table 
omits other costs that may be associated with hiring a foreign worker, 
such as costs related to worker health examinations and care, 
transportation, and benefits. It also omits nongovernment fees that may 
be associated with tourist visas, such as those charged by travel 
agencies. In addition to the employer fees listed above, foreign 
workers may be responsible for U.S. visa fees. U.S. visa fees generally 
include a $131 application fee and may include an issuance fee, 
depending on the country. Foreign workers in the CNMI are responsible 
for an annual alien registration fee of $25. 

[End of section] 

Appendix IV Country Participation in Current Waiver Programs in the 
United States, the CNMI, and Guam: 

Andora; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Australia; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Austria; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Belgium; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Brunei; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Denmark; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Finland; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

France; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Germany; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Hong Kong[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Iceland; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Indonesia[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No (limited for shipping); 
Guam visa waiver program: Yes. 

Ireland; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Italy; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Japan; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Liechtenstein; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Luxembourg; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Malaysia[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No (police clearance); 
Guam visa waiver program: Yes. 

Monaco; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Nauru[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Netherlands; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

New Zealand; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Norway; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Papua New Guinea[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Portugal; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Republic of Korea[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

San Marino; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Singapore; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Slovenia; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Solomon Islands[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Spain; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Sweden; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Switzerland; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Taiwan[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

United Kingdom; 
U.S. Visa Waiver Program[A]: Yes; 
CNMI entry permit waiver program[B]: Yes; 
Guam visa waiver program: Yes. 

Vanuatu[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Western Samoa[C]; 
U.S. Visa Waiver Program[A]: No; 
CNMI entry permit waiver program[B]: No; 
Guam visa waiver program: Yes. 

Source: GAO analysis of U.S. and CNMI immigration laws. 

[A] In July 2006, we reported that DHS and State were consulting with 
13 countries, including the Republic of Korea, seeking admission into 
the U.S. Visa Waiver Program. The other countries were Bulgaria, 
Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, 
Malta, Poland, Romania, and Slovakia. As noted earlier, in August 2007, 
Congress passed legislation that provides DHS with the authority to 
admit countries with refusal rates between 3 and 10 percent under the 
Visa Waiver Program if the countries meet certain conditions and if DHS 
implements certain security measures. The Republic of Korea's refusal 
rate in fiscal year 2007 was 4.4 percent. GAO, Process for Admitting 
Additional Countries into the Visa Waiver Program, GAO-06-835R 
(Washington, D.C.: July 28, 2006) and GAO, Visa Waiver Program: 
Limitations with the Department of Homeland Security's Plan to Verify 
Departure of Foreign Nationals, GAO-08-458T (Washington, D.C.: Feb. 28, 
2008). While Canada is not included in the U.S. Visa Waiver Program, 
nationals of Canada may also, in most circumstances, qualify for visa- 
free travel to the United States, including Guam. 

[B] An order of the CNMI Attorney General dated March 23, 2004 includes 
the Republic of Korea, Hong Kong, and Canada in the CNMI's permit 
waiver program, but CNMI officials said that this order was no longer 
in effect. The officials said that the CNMI currently waives permit 
requirements only for visitors from countries included in the U.S. Visa 
Waiver Program. They could not identify any document specifically 
revoking the 2004 order, and an official said the CNMI planned to issue 
clarification to the policy in the near future. 

[C] Indicates countries for which visa waiver participation for tourism 
or business differs among the United States, the CNMI, and Guam. Under 
U.S. visa waivers, visitors may enter for up to 90 days. Under CNMI 
entry permit waivers, the length of admission is also up to 90 days. 
Under Guam visa waivers, visitors may enter for up to 15 days, except 
that citizens from countries eligible for the U.S. Visa Waiver Program 
may enter for 90 days. This table does not include the Freely 
Associated States--the Federated States of Micronesia, Republic of the 
Marshall Islands, and Republic of Palau--whose citizens are permitted 
to work in the CNMI and elsewhere in the United States under the 
Compacts of Free Association. 

[End of table] 

[End of section] 

Appendix V: Northern Mariana Islands Immigration, Security, and Labor 
Act (H.R. 3079): 

The Northern Mariana Islands Immigration, Security, and Labor Act (H.R. 
3079) passed the House of Representatives on December 11, 2007, and was 
placed on the Senate calendar as Title VII of S. 2483 on December 14, 
2007. On January 30, 2008, the Senate Committee on Energy and Natural 
Resources reported S. 1634, containing the text of H.R. 3079, as passed 
by the House. The text of the bill was included in S. 2616, introduced 
on February 8, 2008, and placed on the Senate calendar on February 11, 
2008. The text of the bill with some revisions was also included in S. 
2739, introduced on March 10, 2008, and placed on the Senate calendar 
on March 11, 2008. As of our issuance date, S. 2739 was pending in the 
Senate. 

We re-printed the text of H.R. 3079, passed by the House, in this 
appendix. 

Title I-Northern Mariana Islands Immigration, Security, And Labor Act: 
Section 101. Short Title. 

This title may be cited as the "Northern Mariana Is- lands Immigration, 
Security, and Labor Act". 

Sec. 102. Statement Of Congressional Intent. 

(a) Immigration And Growth.-In recognition of the need to ensure 
uniform adherence to long-standing fundamental immigration policies of 
the United States, it is the intention of the Congress in enacting this 
title- (1) to ensure that effective border control procedures are 
implemented and observed, and that national security and homeland 
security issues are properly addressed, by extending the immigration 
laws (as defined in section 101(a)(17) of the Immigration and 
Nationality Act (8 U.S.C. 1101 (a)(17)), to apply to the Commonwealth 
of the Northern Mariana Islands (referred to in this title as the 
"Commonwealth"), with special provisions to allow for-

(A) the orderly phasing-out of the nonresident contract worker program 
of the Commonwealth; and: 

(B) the orderly phasing-in of Federal responsibilities over immigration 
in the Commonwealth: and: 

(2) to minimize, to the greatest extent practicable, potential adverse 
economic and fiscal effects of phasing-out the Commonwealth's 
nonresident contract worker program and to maximize the Common- 
wealth's potential for future economic and business growth by-

(A) encouraging diversification and growth of the economy of the 
Commonwealth in accordance with fundamental values underlying Federal 
immigration policy; 

(B) recognizing local self-government, as provided for in the Covenant 
To Establish a Commonwealth of the Northern Mariana Is- lands in 
Political Union With the United States of America through consultation 
with the Governor of the Commonwealth; 

(C) assisting the Commonwealth in achieving a progressively higher 
standard of living for citizens of the Commonwealth through the pro- 
vision of technical and other assistance; 

(D) providing opportunities for individuals authorized to work in the 
United States, including citizens of the freely associated states, and 
(E) providing a mechanism for the continued use of alien workers, to 
the extent those workers continue to be necessary to supplement the 
Commonwealth's resident workforce, and to protect those workers from 
the potential for abuse and exploitation. 

(b) Avoiding Adverse Effects.--In recognition of the Commonwealth's 
unique economic circumstances, history, and geographical location, it 
is the intent of the Congress that the Commonwealth be given as much 
flexibility as possible in maintaining existing businesses and other 
revenue sources, and developing new economic opportunities, consistent 
with the mandates of this title. This title, and the amendments made by 
this title, should be implemented wherever possible to expand tourism 
and economic development in the Commonwealth, including aiding 
prospective tourists in gaining access to the Commonwealth's memorials, 
beaches, parks, dive sites, and other points of interest.

Sec. 103. Immigration Reform For The Common- Wealth.

(A) Amendment To Joint Resolution Approving Covenant Establishing 
Commonwealth Of The Northern Mariana Islands.-The Joint Resolution 
entitled "A Joint Resolution to approve the 'Covenant To Establish a 
Commonwealth of the Northern Mariana Is- lands in Political Union with 
the United States of America', and for other purposes", approved March 
24, 1976 (Public Law 94-241; 90 Stat. 263), is amended by adding at the 
end the following new section: 

"Sec. 6. Immigration And Transition. "(A) Application Of The 
Immigration And Nationality Act And Establishment Of A Transition 
Program.- 

"(1) In General. Subject to paragraphs (2) and (3), effective on the 
first day of the first full month commencing 1 year after the date of 
the enactment of the Northern Mariana Islands Immigration, Security, 
and Labor Act (hereafter referred to as the `transition program 
effective date'), the provisions of the 'immigration laws' (as defined 
in section 101(a) (17) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(17))) shall apply to the Common- wealth of the Northern Mariana 
Islands (referred to in this section as the `Commonwealth'), except as 
otherwise provided in this section. 

"(2) Transition Period.-There shall be a transition period beginning on 
the transition pro- gram effective date and ending on December 31, 
2013, except as provided in subsections (b) and (d), during which the 
Secretary of Homeland Security, in consultation with the Secretary of 
State, the Attorney General, the Secretary of Labor, and the Secretary 
of the Interior, shall establish, administer, and enforce a transition 
program to regulate immigration to the Commonwealth, as provided in 
this section (hereafter referred to as the `transition pro- gram'). 

"(3) Delay Of Commencement Of Transition Period.- 

"(A) In General.-The Secretary of Homeland Security, in the Secretary's 
sole discretion, in consultation with the Secretary of the Interior, 
the Secretary of Labor, the Secretary of State, the Attorney General, 
and the Governor of the Commonwealth, may determine that the transition 
program effective date be delayed for a period not to exceed more than 
180 days after such date. 

"(B) Congressional Notification.-The Secretary of Homeland Security 
shall notify the Congress of a determination under sub- paragraph (A) 
not later than 30 days prior to the transition program effective date. 
"(C) (Congressional Review-A delay of the transition program effective 
date shall not take effect until 30 days after the (late on which the 
notification under subparagraph (B) is made. 

"(4) Requirement For Regulations.-The transition program shall be 
implemented pursuant to regulations to be promulgated, as appropriate, 
by the head of each agency or department of the United States having 
responsibilities under the transition program. 

"(5) Interagency Agreements.-The Secretary of Homeland Security, the 
Secretary of State, the Secretary of Labor, and the Secretary of the 
Interior shall negotiate and implement agreements among their agencies 
to identify and assign their respective duties so as to ensure timely 
and proper implementation of the provisions of this section. The 
agreements should address, at a minimum, procedures to ensure that 
Commonwealth employers have access to adequate labor, and that 
tourists, students, retirees, and other visitors have access to the Com 
monwealth without unnecessary delay or impediment. The agreements may 
also allocate funding be- tween the respective agencies tasked with 
various responsibilities under this section. 

"(6) Certain Education Funding.-In addition to fees charged pursuant to 
section 286(m) of the Immigration and Nationality Act (8 U.S.C. 
1356(m)) to recover the full costs of providing adjudication services, 
the Secretary of' Homeland Security shall charge an annual supplemental 
fee of $150 per nonimmigrant worker to each prospective employer who is 
issued a permit under subsection (d) of this section during the 
transition period. Such supplemental fee shall be paid into the 
Treasury of the Commonwealth government for the purpose of funding 
ongoing vocational educational curricula and program development by 
Commonwealth educational entities. 

"(7) Asylum.-Section 208 of the Immigration and Nationality Act (8 
U.S.C. 1158) shall not apply during the transition period to persons 
physically present in the Commonwealth or arriving in the Commonwealth 
(whether or not at a designated port of arrival), including persons 
brought to the Commonwealth after having been interdicted in inter- 
national or United States waters. 

"(b) Numerical Limitations For Nonimmigrant Workers.-An alien, if 
otherwise qualified, may seek ad- mission to Guam or to the 
Commonwealth during the transition program as a nonimmigrant worker 
under section 101(a)(15)(II) of the Immigration and Nationality Act (8 
U.S.C. 11O1(a)(15)(H)) without counting' against the numerical 
limitations set forth in section 214(g) of' such Act (8 U.S.C. 
1184(g)). This subsection does not apply to any employment to be 
performed outside of Guam or the Commonwealth. Not later than 3 years 
following the transition program effective date, the Secretary of 
Homeland Security shall issue a report to the Committee on Energy and 
Natural Resources and the Committee on the Judiciary of the Senate and 
the Committee on Natural Resources and the Committee on the Judiciary 
of the House of Representatives projecting the number of asylum claims 
the Secretary anticipates following the termination of the transition 
period, the efforts the Secretary has made to ensure appropriate 
interdiction efforts, provide for appropriate treatment of asylum 
seekers, and prepare to accept and adjudicate asylum claims in the 
Common- wealth. 

"(c) Nonimmigrant Investor Visas.- "(1) In General.-Notwithstanding the 
treaty requirements in section 101(a)(15)(E) of the Immigration and 
Nationality Act, (8 U.S.C. 1101(a)(1 5)(E)), during the transition 
period, the Secretary of Homeland Security may, upon the application of 
an alien, classify an alien as a CNMT- only nonimmigrant under section 
101(a)(15)(E)(ii) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(E)(ii)) if the alien- 

"(A) has been admitted to the Common- wealth in long-term investor 
status under the immigration laws of the Commonwealth before the 
transition program effective date; "(B) has continuously maintained 
residence in the Commonwealth under long-term investor status;

"(C) is otherwise admissible; and "(I)) maintains the investment or 
investments that formed the basis for such long-term investor status.

"(2) Requirement For Regulations.-Not later than 60 days before the 
transition program effective date, the Secretary of Homeland Security 
shall publish regulations in the Federal Register to implement this 
subsection.

"(d) Special Provision To Ensure Adequate Employment; Commonwealth Only 
Transitional Workers.---An alien who is seeking to enter the Com- 
monwealth as a nonimmigrant worker may be admitted to perform work 
during the transition period subject to the following requirements. 

"(1) Such an alien shall be treated as a non- immigrant described in 
section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)), including the ability to apply, if other- wise eligible, 
for a change of nonimmigrant classification under section 248 of such 
Act (8 U.S.C. 1258) or adjustment of status under this section and 
section 245 of' such Act (8 U.S.C. 1255). 

"(2) The Secretary of Homeland Security 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 such nonimmigrant worker de- scribed in this subsection who would 
not otherwise be eligible for admission under the Immigration and 
Nationality Act (8 U.S.C. 1101 et seq.) In adopting and enforcing this 
system, the Secretary shall also consider, in good faith and not later 
than 30 days after receipt by the Secretary, any comments and advice 
submitted by the Governor of the Commonwealth. This system shall 
provide for a reduction in the allocation of permits for such workers 
on an annual basis, to zero, during a period not to extend beyond 
December 31, 2013, unless extended pursuant to paragraph 5 of this 
subsection, and shall take into account the number of petitions granted 
under subsection (i). 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 Homeland 
Security to promote the maximum use of, and to prevent adverse effects 
on wages and working conditions of, workers authorized to be employed 
in the United States, including lawfully admissible freely associated 
state citizen labor. No alien shall be granted nonimmigrant 
classification or a visa under this subsection unless the permit, 
requirements established under this paragraph have been met. 

"(3) The Secretary of Homeland Security shall set the conditions for 
admission of such an alien under the transition program, and the 
Secretary of State shall authorize the issuance of nonimmigrant visas 
for such an alien. Such a visa. shall not lie 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 admission to the 
Commonwealth. An alien admitted to the Commonwealth on the basis of 
such a visa shall be permitted to engage in employment only as 
authorized pursuant to the transition program. 

"(4) Such an alien shall be permitted to transfer between employers in 
the Commonwealth during the period of such alien's authorized stay 
therein, without permission of the employee's current or prior 
employer, within the alien's occupational category or another 
occupational category the Secretary of Homeland Security has found 
requires alien workers to supplement the resident workforce. 

"(5)(A) Not later than 180 days prior to the expiration of the 
transition period, or any extension thereof, the Secretary of Labor, in 
consultation with the Secretary of Homeland Security, the Secretary of 
the Interior, and the Governor of the Commonwealth, shall ascertain the 
current and anticipated labor needs of the Commonwealth and determine 
whether an extension of up to 5 years of the provisions of this 
subsection is necessary to ensure an adequate number of workers will be 
available for legitimate businesses in the Commonwealth. For the 
purpose of this subparagraph, a business shall not be considered 
legitimate if it engages directly or indirectly in prostitution, 
trafficking in minors, or any other activity that is illegal under 
Federal or local law. The determinations of whether a. business is 
legitimate and to what extent, if any, it may require alien workers to 
supplement the resident workforce, shall be made by the Secretary of 
Homeland Security, in the Secretary's sole discretion. 

"(B) If the Secretary of Labor determines that such an extension is 
necessary to ensure an adequate number of workers for legitimate 
businesses in the Commonwealth, the Secretary of Labor may, through 
notice published in the Federal Register, provide for an additional 
extension period of up to 5 years.

"(C) In making the determination of whether alien workers are necessary 
to ensure an adequate number of workers for legitimate businesses in 
the Commonwealth, and if so, the number of such workers that are 
necessary, the Secretary of Labor may consider, among other relevant 
factors-

"(i) government, industry, or independent workforce studies reporting 
on the need, or lack thereof, for alien workers in the Commonwealth's 
businesses; "(ii) the unemployment rate of United States citizen 
workers residing in the Common- wealth; 

"(iii) the unemployment rate of aliens in the Commonwealth who have 
been lawfully admitted for permanent residence; 

"(iv) the number of unemployed alien workers in the Commonwealth; 

"(v) any good faith efforts to locate, educate, train, or otherwise 
prepare United States citizen residents, lawful permanent residents, 
and unemployed alien workers already within the Commonwealth, to assume 
those jobs; 

"(vi) any available evidence tending to show that United States citizen 
residents, lawful permanent residents, and unemployed alien workers 
already in the Commonwealth are not willing to accept jobs of the type 
offered; 

"(vii) the extent to which admittance of alien workers will affect the 
compensation, benefits, and living standards of existing workers within 
those industries and other industries authorized to employ alien 
workers; and: 

"(viii) the prior use, if any, of alien workers to fill those industry 
jobs, and whether the industry requires alien workers to fill those 
jobs. 

"(6) The Secretary of Homeland Security may authorize the admission of 
a spouse or minor child accompanying or following to join a worker 
admitted pursuant to this subsection. 

"(c) Persons Lawfully Admitted Under The Commonwealth Immigration Law. 

"(I) Prohibition On Removal.

"(A) In General.-Subject to subparagraph (B), no alien who is lawfully 
present in the Commonwealth pursuant to the immigration laws of the 
Commonwealth on the transition program effective date shall be removed 
from the United States on the grounds that such alien's presence in the 
Commonwealth is in violation of section 212(a)(6)(A) of the Immigration 
and Nationality Act (8 U.S.C. 1182(a)(6)(A)), until the earlier of the 
date- 

"(i) of the completion of the period of the alien's admission under the 
immigration laws of the Commonwealth; or "(ii) that is 2 years after 
the transition program effective date.

"(B) Limitations.-Nothing in this subsection shall be construed to 
prevent or limit the removal under subparagraph 212(a)(6)(A) of the 
Immigration and Nationality Act (8 U.S.C. 1182(a)(6)(A)) of such an 
alien at any time, if the alien entered the Commonwealth after the date 
of the enactment of the Northern Mariana Islands Immigration, Security, 
and Labor Act, and the Secretary of Homeland Security has determined 
that the Government of the Commonwealth has violated section 103(i) of 
the Northern Mariana Islands Immigration, Security, and Labor Act. 

"(2) Employment Authorization.-An alien who is lawfully present and 
authorized to be employed in the Commonwealth pursuant to the 
immigration laws of the Commonwealth on the transition program 
effective date shall be considered authorized by the Secretary of 
Homeland Security to be employed in the Commonwealth until the earlier 
of the date- 

"(A) of expiration of the alien's employment authorization under the 
immigration laws of the Commonwealth or: 

"(R) that is 2 years after the transition program effective date.

"(3) Registration.-The Secretary of Homeland Security may require any 
alien present in the Commonwealth on or after the transition period 
effective date to register with the Secretary in such a manner, and 
according to such schedule. as he may in his discretion require. 
Paragraphs (1) and (2) of this subsection shall not apply to any alien 
who fails to comply with such registration requirement. Notwithstanding 
any other law, the Government of the Commonwealth shall provide to the 
Secretary all Commonwealth immigration records or other information 
that the Secretary deems necessary to assist the implementation of' 
this paragraph or other provisions of' the Northern Mariana Islands 
Immigration, Security, and Labor Act. Nothing in this paragraph shall 
modify or limit section 262 of' the Immigration and Nationality Act (8 
U.S.C. 1302) or' other provision of the Immigration and Nationality Act 
relating to the registration of aliens. 

"(4) Removable Aliens.-Except as specifically provided in paragraph 
(1)(A) of this subsection, nothing in this subsection shall prohibit or 
limit the removal of any alien who is removable under the immigration 
and Nationality Act. 

"(5) Prior Orders Of Removal. The Secretary of Homeland Security may 
execute any administratively final order of exclusion, deportation or 
removal issued under authority of the immigration laws of the United 
States before, on, or after the transition period effective date, or 
under authority of the immigration laws of the Commonwealth before the 
transition period effective date, upon any subject of such order found 
in the Commonwealth on or after the transition period effective date, 
regardless whether the alien has previously been removed from the 
United States or the Commonwealth pursuant to such order.

"(f) Effect On Other Laws-The provisions of this section and of the 
immigration laws, as defined in section 101(a)(17) of' the immigration 
and Nationality Act (8 U.S.C. 1101(a)(17)), shall, on the transition 
program effective date, supersede and replace all laws, provisions, 
or programs of the Commonwealth relating to the admission of aliens and 
the removal or aliens from the Commonwealth. 

"(G) Accrual Of Time For Purposes Of Section 212(A)(9)(B) Of The 
Immigration And Nationality Act.-No time that an alien is present in 
the Common- wealth in violation of the immigration laws of the Com- 
monwealth shall he counted for purposes of inadmissibility under 
section 212(a)(9)(B) of the Immigration and Nationality Act (8 U.S.C. 
1182(a)(9)(B)). 

"(h) Report On Nonresident Guestworker Population. The Secretary of the 
Interior, in consultation with the Secretary of Homeland Security, and 
the Governor of the Commonwealth, shall report to the Congress not 
later than 2 years after the date of the enactment of the Northern 
Mariana Islands Immigration, Security, and Labor Act. The report shall 
include- "(1) the number of aliens residing in the Com- monwealth; 

"(2) a description of the legal status (under Federal law) of such 
aliens; 

"(3) the number of years each alien has been residing in the 
Commonwealth; 

"(4) the current and future requirements of the Commonwealth economy 
for an alien workforce; and: 

"(5) such recommendations to the Congress, as the Secretary may deem 
appropriate, related to whether or not the Congress should consider 
permit- ting lawfully admitted guest workers lawfully residing in the 
Commonwealth on such enactment (late to apply for long-term status 
under the immigration and nationality laws of the United States.". 

(b) Waiver Of Requirements For Nonimmigrant Visitors.-The Immigration 
and Nationality Act (8 U.S.C. 1101 et seq.) is amended- 

(1) in section 214(a)(1) (8 U.S.C. 1184(a)(1)) 

(A) by striking "Guam" each place such term appears and inserting "Guam 
or the Com- monwealth of the Northern Mariana Islands"; and: 

(B) by striking "fifteen" and inserting "45";

(2) in section 212(a)(7)(B) (8 U.S.C. 1182(a)(7)(B)), by amending 
clause (iii) to read as follows:

"(iii) Guam And Northern Mariana Islands Visa Waiver.-For provision 
authorizing waiver of clause (i) in the ease of visitors to Guam or the 
Commonwealth of the Northern Mariana Islands, see sub- section (1)."; 
and: 

(3) by amending section 212(1) (S U.S.C. 1182(1)) to read as follows:

"(1) Guam And Northern Mariana Islands Visa Waiver Program.- 

"(1) In General.-The requirement of sub- section (a)(7)(B)(i) may be 
waived by the Secretary of Homeland Security, in the case of an alien 
applying for admission as a nonimmigrant visitor for business or 
pleasure and solely for entry into and stay in Guam or the Commonwealth 
of the Northern Mariana Islands for a period not to exceed 45 days, if 
the Secretary of Homeland Security, after consultation with the 
Secretary of the Interior, the Secretary of State, the Governor of Guam 
and the Governor of the Commonwealth of the Northern Mariana Islands, 
determines that- 

"(A) an adequate arrival and departure control system has been 
developed in Guam and the Commonwealth of the Northern Mariana Is- 
lands; and: 

"(B) such a waiver does not represent a threat to the welfare, safety, 
or security of the United States or its territories and commonwealths. 

"(2) Alien Waiver Of Rights.-An alien may not be provided a waiver 
under this subsection unless the alien has waived any right- 

"(A) to review or appeal under this Act an immigration officer's 
determination as to the admissibility of the alien at the port of entry 
into Guam or the Commonwealth of the Northern Mariana. Islands; or: 

"(B) to contest, other than on the basis of an application for 
withholding of removal under section 241(b)(3) of this Act or under the 
Convention Against Torture, or an application for asylum if permitted 
under section 208, any action for removal of the alien.

"(3) Regulations.- All necessary regulations to implement this 
subsection shall be promulgated by the Secretary of Homeland Security, 
in consultation with the Secretary of the Interior and the Secretary of 
State, on or before the 180th day after the date of the enactment of 
the Northern Mariana Islands Immigration, Security, and Labor Act. The 
promulgation of such regulations shall be considered a foreign affairs 
function for purposes of section 553(a) of title 5, United States Code. 
At a minimum, such regulations should include, but not necessarily be 
limited to- 

"(A) a listing of all countries whose nationals may obtain the waiver 
also provided by this subsection, except that such regulations shall 
provide for a listing of any country from which the Commonwealth has 
received a significant economic benefit from the number of visitors for 
pleasure within the one-year period preceding the date of the enactment 
of the Northern Mariana Islands Immigration, Security, and Labor Act, 
unless the Secretary of Homeland Security determines that such 
country's inclusion on such list would represent a threat to the 
welfare, safety, or security of the United Slates or its territories; 
and: 

"(B) any bonding requirements for nationals of some or all of those 
countries who may present an increased risk of overstays or other 
potential problems, if different from such requirements otherwise 
provided by Law For Nonimmigrant Visitors.

"(4) Factors-In determining whether to grant or continue providing the 
waiver under this subsection to nationals of any country, the Secretary 
of Homeland Security, in consultation with the Secretary of the 
Interior and the Secretary of State, shall consider all factors that 
the Secretary deems relevant, including electronic travel 
authorizations, procedures for reporting lost and stolen passports, 
repatriation of aliens, rates of refusal for nonimmigrant visitor 
visas, overstays, exit systems, and information exchange. 

"(5) Suspension.-The Secretary of Homeland Security shall monitor the 
admission of non- immigrant visitors to Guani and the Commonwealth of 
the Northern Mariana Islands under this subsection. If the Secretary 
determines that such admissions have resulted in an unacceptable number 
of visitors from a country remaining unlawfully in Guam or the 
Commonwealth of the Northern Mariana Islands, unlawfully obtaining 
entry to other parts of the United States, or seeking withholding of 
removal or asylum, or that visitors from a country pose a risk to law 
enforcement or security interests of Guam or the Commonwealth of the 
Northern Mariana. Islands or of the United States (including the 
interest in the enforcement of the immigration laws of the United 
States), the Secretary shall suspend the admission of nationals of such 
country under this subsection. The Secretary of Homeland Security may 
in the Secretary's discretion suspend the Guam and Northern Mariana 
Islands visa waiver program at any time, on a country-by-country- 
basis, for other good cause. 

"(6) Addition Of Countries.-The Governor of Guam and the Governor of 
the Commonwealth of the Northern Mariana Islands may request the 
Secretary of the Interior and the Secretary of Homeland Security to add 
a particular country to the list of countries whose nationals may 
obtain the waiver provided by this subsection, and the Secretary of 
Homeland Security may grant such request after consultation with the 
Secretary of the Interior and the Secretary of State, and may 
promulgate regulations with respect to the inclusion of that country 
and any special requirements the Secretary of Homeland Security, in the 
Secretary's sole discretion, may impose prior to allowing nationals of 
that country to obtain the waiver provided by this subsection.". 

(C) Special Nonimmigrant Categories For Guam And The Commonwealth Of 
The Northern Mariana Islands-The Governor of Guam and the Governor of 
the Commonwealth of the Northern Mariana Islands (referred to in this 
subsection as "CNMI") may request that the Secretary of Homeland 
Security study the feasibility of creating additional Guam or CNMI only 
nonimmigrant visas to the extent that existing nonimmigrant visa 
categories under the Immigration and Nationality Act do not provide for 
the type of visitor, the duration of allowable visit, or other 
circumstance. The Secretary of Homeland Security may review such a 
request, and, after consultation with the Secretary of State and the 
Secretary of the Interior, shall issue a report to the Committee on 
Energy and Natural Resources and the Committee on the Judiciary of the 
Senate and the Committee on Natural Resources and the Committee on the 
Judiciary of the House of Representatives with respect to the 
feasibility of creating those additional Guani or CNMT-only visa 
categories. Consideration of such additional Guam or CNMI only visa 
categories may include, but are not limited to, special nonimmigrant 
statuses for investors, students, and retirees, but shall not include 
nonimmigrant status for the purpose of employment in Guam or the CNMI. 

(d) Inspection Of Persons Arriving From The Commonwealth Of The 
Northern Mariana Islands; Guam And Northern Mariana Islands-Only Visas 
Not Valid For Entry Into Other Parts Of The United States.--Section 
212(d)(7) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(7)) 
is amended by inserting "the Commonwealth of the Northern Mariana 
Islands," after "Guam.". 

(e) Technical Assistance Program.- 

(1) In General.-The Secretary of the Interior, in consultation with the 
Governor of the Com- monwealth, the Secretary of Labor, and the 
Secretary of Commerce, and as provided in the Interagency Agreements 
required to he negotiated under section 6(a)(4) of the Joint Resolution 
entitled "A 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", approved March 
24, 1976 (Public Law 94-241), as added by sub section (a), shall 
provide-

(A) technical assistance and other support to the Commonwealth to 
identify opportunities for, and encourage diversification and growth 
of, the economy or the Commonwealth; 

(B) technical assistance, including assistance in recruiting, training, 
and hiring of workers, to assist employers in the Commonwealth in 
securing employees first from among United States citizens and 
nationals resident in the Commonwealth and if an adequate number of 
such workers are not available, from among legal permanent residents, 
including lawfully admissible citizens of the freely associated states; 
and: 

(C) technical assistance, including assistance to identify types of 
jobs needed, identify skills needed to fulfill such jobs, and 
assistance to Commonwealth educational entities to develop curricula 
for such job skills to include 1 raining teachers and students for such 
skills. 

(2) Consultation. -In providing such technical assistance under 
paragraph (1), the Secretaries shall- 

(A) consult with the Government of the Commonwealth, local businesses, 
regional banks, educational institutions, and other ex- perts in the 
economy of the Commonwealth; and: 

(B) assist in the development and implementation of a process to 
identify opportunities for and encourage diversification and growth of 
the economy of the Commonwealth and to identify and encourage 
opportunities to meet the labor needs of the Commonwealth. 

(3) Cost-Sharing.-For the provision of technical assistance or support 
under this paragraph (other than that required to pay the salaries and 
expenses of Federal personnel), the Secretary of the Interior shall 
require a non-Federal matching contribution of 10 percent. 

(f) Operations. 

(1) Establishment.-At any time on and after the date of the enactment 
of this Act, the Attorney General, Secretary of Homeland Security, and 
the Secretary of Labor may establish and main- tain offices and other 
operations in the Common- wealth for the purpose of carrying out duties 
under- 

(A) the Immigration and Nationality Act (8 U.S.C. 1101 et seq.); and: 

(B) the transition program established under section 6 of the Joint 
Resolution entitled "A 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", 
approved March 24, 1976 (Public Law 94-241), as added by subsection (a) 
of this section. 

(2) Personnel.-To the maximum extent practicable and consistent with 
the satisfactory performance of assigned duties under applicable law, 
the Attorney General, Secretary of Homeland Security, and the Secretary 
of Labor shall recruit and hire personnel from among qualified United 
States citizens and national applicants residing in the Commonwealth to 
serve as staff in carrying out operations described in paragraph (1). 

(g) Conforming Amendments To Public is LAW 94- 

(1) Amendments.----Public Law 94-241 is amended as follows: 

(A) In section 503 of the covenant set forth in section 1, by striking 
subsection (a) and redesignating subsections (b) and (c) as subsections 
(a) and (b), respectively. (B) By striking section 506 of the covenant 
set forth in section 1. 

(C) In section 703(b) of the covenant set forth in section 1, by 
striking. "quarantine, passport, immigration and naturalization" and 
inserting "quarantine and passport". 

(2) Effective Date.-The amendments made by paragraph (1) shall take 
effect on the transition program effective date described in section 6 
of Pub- lie Law 94-241 (as added by subsection (a)). 

(h) Reports TO Congress.- 

(1) In General-Not later than March 1 of the first year that is at 
least 2 full years after the date of the enactment of this title, and 
annually thereafter, the President shall submit to the Committee on 
Energy and Natural Resources and the Committee on the Judiciary of the 
Senate and the Committee on Natural Resources and the Committee on the 
Judiciary of the House of Representatives a report that evaluates the 
overall effect of the transition program established under section 6 of 
the Joint Resolution entitled "A 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, approved March 24, 1976 (Public Law 94-241), as added by 
subsection (a) of this section, and the Immigration and Nationality Act 
(S U.S.C. 1101 et seq.) on the Commonwealth. 

(2) Contents.--In addition to other topics otherwise required to be 
included under this title or the amendments made by this title, each 
report submitted under paragraph (1) shall include a description of the 
efforts that have been undertaken during the period covered by the 
report to diversify and strengthen the local economy of the 
Commonwealth, including efforts to promote the Commonwealth as a 
tourist destination. The report by the President shall include an 
estimate for the numbers of non- immigrant workers described under 
section 101(a)(15)(II) of the Immigration and Nationality Act (8 U.S.C. 
101(a)(15)(II)) necessary to avoid adverse economic effects in Guam and 
the Common- wealth. 

(3) Gao Report.-The Government Accountability Office shall submit a 
report to the Congress not later than 2 years after the date of the 
enactment of this title, to include, at a minimum, the following' 
items: 

(A) An assessment of the implementation of this title and the 
amendments made by this title, including an assessment of the 
performance of Federal agencies and the Government of the Commonwealth 
in meeting congressional intent. 

(R) An assessment of the short-term and long-term impacts of 
implementation of this title and the amendments made by this title on 
the economy of the Commonwealth, including. its ability to obtain 
workers to supplement its resident workforce and to maintain access to 
its tourists and customers, and any effect on compliance with United 
States treaty obligations mandating non-refoulement for refugees. 

(C) An assessment of the economic benefit of the investors 
"grandfathered" under subsection (c) of section 6 of the Joint 
Resolution entitled "A 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", 
approved March 24, 1976 (Public Law 94-241), as added by subsection (a) 
of this section, and the Commonwealth's ability to attract new 
investors after the date of the enactment of this title. 

(D) An assessment of the number of illegal aliens in the Commonwealth, 
including any Federal and Commonwealth efforts to locate and repatriate 
them. 

(4) Reports By The Local Government.- The Governor of the Commonwealth 
may submit an annual report to the President on the implementation of 
this title, and the amendments made by this title, with recommendations 
for future changes. The President shall forward the Governor's report 
to the Congress with any Administration comment after an appropriate 
period of time for internal review, provided that nothing in this 
paragraph shall be construed to require the President to provide any 
legislative recommendation to the Congress. 

(5) Report On Federal Personnel And Re- Source Requirements.-Not later 
than 180 days after the date of the enactment of this Act, the 
Secretary of Homeland Security, after consulting with the Secretary of 
the Interior and other departments and agencies as may be deemed 
necessary, shall submit a report to the Committee on Natural Resources, 
the Committee on Homeland Security, and the Committee on the Judiciary 
of the House of Representatives, and to the Committee on Energy and 
Natural Resources, the Committee on Homeland Security and Governmental 
Affairs, and the Committee on the Judiciary of the Senate, on the 
current and planned levels of Transportation Security Administration, 
United States Customs and Border Protection, United States Immigration 
and Customs Enforcement, United States Citizenship and Immigration 
Services, and United States Coast Guard personnel and resources 
necessary for fulfilling mission requirements on Guam and the 
Commonwealth in a manner comparable to the level provided at other 
similar ports of entry in the United States. In fulfilling this 
reporting requirement, the Secretary shall consider and anticipate the 
increased requirements due to the proposed realignment of military 
forces on Guam and in the Commonwealth and growth in the tourism 
sector. 

(i) Required Actions Prior '10 Transition Program Effective Date.-
During the period beginning on the (late of the enactment of this Act 
and ending on the transition program effective (late described in 
section 6 of Public Law 94-241 (as added by subsection (a)), the 
Government of the Commonwealth shall- 

(1) not permit, an increase in the total number of alien workers who 
are present in the Common- wealth as of the date of the enactment of 
this Act; and: 

(2) administer its Refoulement protection program-

(A) according to the terms and procedures set forth in the Memorandum 
of Agreement entered into between the Commonwealth of the Northern 
Mariana Islands and the United States Department of Interior, Office of 
Insular Affairs, executed on September 12, 2003 (which terms and 
procedures, including but not limited to funding by the Secretary of 
the Interior and performance by the Secretary of Homeland Security of 
the duties of "Protection Consultant" to the Commonwealth, shall have 
effect on and after the date of the enactment of this Act), as well as 
CNMI Public Law 13-61 and the Immigration Regulations Establishing a 
Procedural Mechanism for Persons Requesting Protection from 
Refoulement; and: 

(B) so as not to remove or otherwise effect the involuntary return of' 
any alien whom the Protection Consultant has determined to be eligible 
for protection from persecution or torture. 

(J) Conforming Amendments To The Immigration And Nationality Act.-The 
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is amended-

(1) in section 101(a)(15)(D)(ii), by inserting "or the Commonwealth of 
the Northern Mariana Is- lands" after "Guam" each time such term 
appears; 

(2) in section 101(a)(36), by striking "and the Virgin Islands of the 
United States" and inserting "the Virgin Islands of the United States, 
and the Commonwealth of the Northern Mariana Islands"; 

(3) in section 101(a)(38), by striking "and the Virgin Islands of the 
United States" and inserting "the Virgin Islands of the United States, 
and the Commonwealth of the Northern Mariana Islands"; (4) in section 
208, by adding at the end the following: " 

(e) Commonwealth Of The Northern Mariana Islands.-The provisions of 
this section and section 209(b) of this Act shall apply to persons 
physically present in the Commonwealth of the Northern Mariana Islands 
or arriving in the Commonwealth (whether or not at a designated port of 
arrival and including persons who are brought to the Commonwealth after 
having been inter- dieted in international or United States waters) 
only on or after January 1, 2014."; and: 

(5) in section 235(b)(1), by adding at the end the following:

"(G) Commonwealth Of The Northern Mariana Islands.--Nothing in this 
subsection shall be construed to authorize or require any person 
described in section 208(c) of this Act to be permitted to apply for 
asylum under section 208 of this Act at an time before January 1, 
2014.". 

(k) Availability Of Other Nonimmigrant Professionals.-The requirements 
of section 212(m)(6)(B) of the Immigration and Nationality Act, (8 
U.S.C. 1182(m)(6)(B)) shall not apply to a facility in Guam, the 
Commonwealth of the Northern Mariana Islands, or the Virgin Islands.

Sec. 104. Further Amendments To Public Law 94-241. 

Public Law 94-241, as amended, is further amended in section 4(e)(3) by 
striking the colon after "Marshall Islands" and inserting the 
following: ", except that $200,000 in fiscal year 2009 and $225,000 
annually for fiscal years 2010 through 2018 are hereby rescinded; 
Provided, That the amount rescinded shall be increased by the same 
percentage as that of the annual salary and benefit adjustments for 
Members of Congress". 

Sec. 105. Authorization Of Appropriations. 

There are authorized to be appropriated such sums as may be necessary 
to carry out this title. 

Sec. 106. Effective Date. 

(a) In General-Except as specifically provided in this section or 
otherwise in this Act, this title and the amendments made by this title 
shall take effect on the date of the enactment of this title. 

(b) Amendments To The Immigration And Nationality Act.-The amendments 
to the Immigration and Nationality Act made by this Act, and other 
provisions of this Act applying the immigration laws (as defined in 
section 101(0)(17) of Immigration and Nationality Act (8 U.S.C. 
1101(a)(17))) to the Commonwealth, shall take effect on the transition 
program effective date described in section 6 of Public Law 94-241 (as 
added by section 103(a) of this Act), unless specifically provided 
otherwise in this Act. 

(c) Construction.-Nothing in this Act or the amendments made by this 
Act shall be construed to make any residence or presence in the 
Commonwealth before the transition program effective date described in 
section 6 or Public Law 94-241 (as added by section 103(a) of this Act) 
residence or presence in the United States, except that, for the 
purpose only of determining whether an alien lawfully admitted for 
permanent residence (as defined in section 101(a)(20) of the 
Immigration and Nationality Act (8 U.S.C. 101(a)(20))) has abandoned or 
lost such status by reason of absence from the United States, such 
alien's presence in the Commonwealth before, on, or after the date of 
the enactment of this Act shall be considered to be presence in the 
United States. 

Title Ii-Northern Mariana Islands Delegate Act: 

Sec. 201. Short Title. 

This title may be cited as the "Northern Mariana. Is- lands Delegate 
Act". 

Sec. 202. Delegate To House Of Representatives From Commonwealth Of The 
Northern Mariana Islands. 

The Commonwealth of the Northern Mariana Islands shall be represented 
in the United States Congress by the Resident Representative to the 
United States authorized by section 901 of the Covenant To Establish a 
Common- wealth of the Northern Mariana Islands in Political Union With 
the United States of America, (approved by Public Law 94-241 (48 U.S.C. 
1801 et seq.)). The Resident Representative shall be a nonvoting 
Delegate to the House of Representatives, elected as provided in this 
title. 

Sec. 203. Election Of Delegate. 

(a) Electors And Time Of Election.-The Dele- gate shall be elected-

(1) by the people qualified to vote for the popularly elected officials 
of the Commonwealth of the Northern Mariana Islands; and
(2) at the Federal general election of 2008 and at such Federal general 
election every 2d year there- after.

(b) Manner Of Election.- 

(1) In General.-The Delegate shall be elect- ed at large and by a 
plurality of the votes east for the office of Delegate. 

(2) Effect Of Establishment Of Primary Elections.-Notwithstanding 
paragraph (1), if the Government of the Commonwealth of the Northern 
Mariana Islands, acting pursuant to legislation enacted in accordance 
with the Constitution of the Commonwealth of the Northern Mariana 
Islands, provides for primary elections for the election of the 
Delegate, the Delegate shall be elected by a majority of the votes east 
in any general election for the office of Delegate for which such 
primary elections were held. 

(e) Vacancy.-In ease of a permanent vacancy in the office of Delegate, 
the office of Delegate shall remain vacant until a successor is elected 
and qualified. 

((I) Commencement Of Term.-The term of the Delegate shall commence on 
the 3d day of' January following the date of' the election. 

Sec. 204. Qualifications For Office Of Delegate. 

o be eligible for the office of' Delegate a candidate shall- 

(1) be at least 25 years of age on the date of the election;

(2) have been a citizen of the United States for at least 7 years prior 
to the date of the election; (3) be a resident and domiciliary of the 
Commonwealth of the Northern Mariana Islands for at least 7 years prior 
to the date of the election; (4) be qualified to vote in the 
Commonwealth of the Northern Mariana Islands on the date of the 
election; and: 

(5) not be, on the date of the election, a. candidate for any other 
office.

Sec. 205. Determination Of Election Procedure. Acting pursuant to 
legislation enacted in accordance with the Constitution of the 
Commonwealth of the Northern Mariana Islands, the Government of the 
Common- wealth of the Northern Mariana Islands may determine the order 
of names on the ballot for election of Delegate, the method by which a 
special election to fill a permanent vacancy in the office of Delegate 
shall be conducted, the method by which ties between candidates for the 
office of Delegate shall be resolved, and all other matters of local 
application pertaining to the election and the office of Delegate not 
otherwise expressly provided for in this title. 

Sec. 206. Compensation, Privileges, And Immunities. 

Until the Rules of the House of Representatives are amended to provide 
otherwise, the Delegate from the Com- monwealth of the Northern Mariana 
Islands shall receive the same compensation, allowances, and benefits 
as a Member of the House of Representatives, and shall be entitled to 
whatever privileges and immunities are, or herein- after may be, 
granted to any other nonvoting Delegate to the House of 
Representatives. 

Sec. 207. Lack Of Effect On Covenant. No provision of this title shall 
be construed to alter, amend, or abrogate any provision of the covenant 
referred to in section 202 except section 901 of the covenant. 

Sec. 208. Definition. 

For purposes of this title, the term "Delegate" moans the Resident 
Representative referred to in section 202. 

Sec. 209. Conforming Amendments Regarding Appointments To Military 
Service Academies By Delegate From The Commonwealth Of The Northern 
Mariana Islands. 

(a) United States Military Academy.-Section 4342(a)(10) of title 10, 
United States Code, is amended by striking "resident representative" 
and inserting "Dele- gate in Congress". 

(b) United States Naval Academy. Section 6954(a)(10) of such title is 
amended by striking "resident representative" and inserting "Delegate 
in Congress". 

(e) United States Air Force Academy.-Section 9342(a)(10) of such title 
is amended by striking "resident representative" and inserting 
"Delegate in Congress". Passed the House of Representatives December 
11, 2007. 
Attest:
Clerk.

[End of section] 

Appendix VI: Comments from the Commonwealth of the Northern Mariana 
Islands: 

Note: GAO comments supplementing those in the report text appear at the 
end of this appendix. 

Commonwealth Of The Northern Mariana Islands: 
Caller Box 10007: 
Saipan, MP 96950: 
Telephone: (670) 664-2200/2300: 
Facsimile: (670) 664-2211/2311: 

Benigno R. Fitial: 
Governor: 

Timothy P. Villagomez: 
Lieutenant Governor: 

March 14, 2008: 

David Gootnick: 
Director, International Affairs and Trade: 
Government Accountability Office: 
441 G Street, NW: 
Washington, DC 20548: 

Re: Comments Regarding Draft GAO Report: 

Dear Mr. Gootnick: 

At the request of Governor Benigno R. Fitial, I am providing the 
comments of the Commonwealth of the Northern Mariana Islands regarding 
the draft report of the Government Accountability Office ("GAO") dated 
March 2008 entitled "Northern Mariana Islands: Pending Legislation 
Would Apply U.S. Immigration Law to the CNMI With a Transition Period." 
We address three issues of particular concern to the Commonwealth: (1) 
the duration of the transition period during which the exemption from 
the statutory caps on H visas will remain in effect; (2) the 
relationship between the exemption from the statutory caps on H visas 
and the CNMI-only permitting system; and (3) the relationship between 
GAO's analysis of the legislation and its proposed study of the 
legislation's economic impact on the Commonwealth. In an attachment to 
this letter, we re submitting certain technical and stylistic comments 
regarding the draft report. 

(See comment 1.): 

I. The Duration of the Legislation's Exemption from the Caps on H Visas 

GAO asserts that the legislation's exemption for Guam and the 
Commonwealth from the numerical limitations for nonimmigrant workers 
seeking to enter the United States under either H-1B or H-2B visas 
expires on December 31, 2013. The agency's conclusion is based on its 
view that the transition period provided by the legislation cannot be 
extended beyond this date. Such an interpretation ignores the relevant 
language of the bill: subsections 6(a)(2) and 6(d)(5) both contemplate 
an extension of the transition period. The GAO contention also 
contradicts the only legislative history directly on point: the Report 
of the House Committee on Natural Resources regarding H.R. 3079 (page 
16) states: "The Secretaries of Labor, Homeland Security, and State 
would be able to extend the transition period for an additional five 
years; Congressional notification is required." 

(See comment 2.): 

The Commonwealth contends that the transition period does not end on 
December 31, 2013, but can be extended for an indefinite number of 
years by action of the Secretary of Labor pursuant to subsection 
6(d)(5) of the legislation. We believe that this is the only reasonable 
reading of the bill's provisions. 

(See comment 1.): 

Section 6 of the legislation amends the Covenant between the United 
States and the Northern Mariana Islands. It is entitled "Immigration 
and Transition" and has eight sections ï¿½ (a) through (h). Subsection 
(a)(1) provides that the immigration laws will apply to the Northern 
Mariana Islands "except as otherwise provided in this section" on the 
"transition program effective date," which is established as "the first 
day of the first full month commencing 1 year after the date" on which 
the legislation was enacted.[Footnote 70] 

Subsection (a)(2) is entitled "Transition Period" and provides: 

"There shall be a transition period beginning on the transition program 
effective date and ending on December 31, 2013, except as provided in 
subsections (b) and (d), during which the Secretary of Homeland 
Security [in consultation with other federal officials] shall 
establish, administer, and enforce a transition program to regulate 
immigration in the Commonwealth, as provided in this section (hereafter 
referred to as the `transition program')." 

Subsection (b), authorizing the exemption from the numerical caps on H 
visas, contains no provision on the basis of which the transition 
period (or the exception from the numerical caps) could be extended. It 
provides: "An alien, if otherwise qualified, may seek admission to Guam 
or to the Commonwealth during the transition program as a nonimmigrant 
worker under section 101(a)(15)(H) of the Immigration and Nationality 
Act (8 U.S.C.1101(a)(15) (H) without counting against the numerical 
limitations set forth in section 214(g) of such Act (8 U.S.C.1184(g))." 
In the absence of a specific date in this subsection, the exemption 
from the numerical limitations exists so long as the transition program 
defined in the proposed legislation continues in effect.[Footnote 71] 

The only basis for an extension of the transition period is found in 
subsection (d)(5) of the legislation. Subsection (d) is entitled 
"Special Provision to Ensure Adequate Employment: Commonwealth Only 
Transitional Workers." The first sentence of subsection (d) provides: 
"An alien seeking to enter the Commonwealth as a nonimmigrant worker 
may be admitted to perform work during the transition period subject to 
the following requirements." 

The subsequent numbered paragraphs of subsection (d) authorize a system 
whereby nonimmigrant foreign workers may be employed in the 
Commonwealth during the transition period so long as the Commonwealth 
employer seeking to employ any such worker has a permit issued by 
federal officials authorizing the employment of a foreign worker. 
Subsection (d)(2) provides "for a reduction in the allocation of 
permits for such workers on an annual basis, to zero, during a period 
not to extend beyond December 31, 2013, unless extended pursuant to 
paragraph 5 of this subsection." The paragraph referred to, subsection 
(d)(5)(A), authorizes the Secretary of Labor, in consultation with 
other federal officials and the Commonwealth, to "determine whether an 
extension of up to 5 years of the provisions of this subsection is 
necessary to ensure an adequate number of workers will be available for 
legitimate businesses in the Commonwealth." 

The GAO contention that such an extension by the Secretary of Labor 
does not extend the transition period conflicts with the language of 
the legislation in three important respects: 

First, the Secretary of Labor under subsection (d)(5)(A) has the 
authority to extend "the provisions of this subsection." The 
"subsection" to which "this" refers is obviously subsection (d) in its 
entirety. The first sentence of subsection (d) specifies that the 
permit system for nonimmigrant workers applies only "during the 
transition period." GAO contends that the Secretary can extend the 
permit system under subsection (d)(5) without extending the transition 
period. This interpretation conflicts squarely with the introductory 
sentence in subsection (d). 

(See comment 1.): 

Second, subsection (a)(2) expressly provides that the transition period 
could be extended under the provisions of subsection (d). The only 
authority granted in subsection (d) to any federal official regarding 
the applicable time limits of any aspect of the transition program is 
the Secretary's authority under subsection (d)(5). Unless this 
authority is interpreted as permitting extension of the transition 
period, it renders the language Congress used in subsection (a)(2) 
meaningless. Indeed, if GAO's interpretation were accepted, there would 
be no statutory authority whatsoever in the legislation for any 
extension of the transition period, notwithstanding the bill's 
provisions and the legislative history to the contrary. 

Third, Congress used the date of December 31, 2013, in only two 
subsections of Section 6 ï¿½ in subsection (a)(2) to establish the end of 
the transition period in the absence of an extension and in subsection 
(d)(2) to fix the date at which all employer permits authorizing the 
use of foreign workers would be reduced to zero. This was not an 
accident: the goal of the legislation is to reduce the number of 
foreign workers in the Commonwealth to zero, after which the federal 
immigration laws would apply in full force, and the transition period 
was designed to provide special conditions to ease the burdens on the 
Commonwealth's economy until the statutory objective of zero was 
achieved. Congress could have fixed different deadlines for the 
transition period and the permit system, but chose not to do so. The 
legislative history of this bill provides no support for the fixing of 
different expiration dates for the various components of the transition 
program. 

Accordingly, affirmative action by the Secretary under subsection 
(d)(5) will extend the transition period and the exemption from the 
numerical limitations regarding H visas "during the transitional 
program" will remain in effect under subsection (b) of the legislation. 

(See comment 1.): 

II. The Permitting System Mandated by the Legislation Applies to All 
Nonimmigrant Workers in the Commonwealth: 

The draft GAO report interprets the proposed legislation as enabling 
CNMI employers to sponsor an unlimited number of nonimmigrant foreign 
workers under the H visa program during the transition period to meet 
their labor needs without complying with the CNMI-only permit system 
established under subsection 6(d). GAO bases this assertion on two 
provisions of the legislation: (1) the exemption from the numerical 
caps on H visas provided by subsection 6(b); and (2) the provision in 
subsection 6(d)(2) to the effect that the permit system applies to 
"each such nonimmigrant worker described in this subsection who would 
not otherwise be eligible for admission under [the INA]." The 
Commonwealth disagrees with this reading of the legislation. 

(See comment 3.): 

A. The Cited Statutory Provisions Do Not Support GAO's Conclusions: 

Neither subsection 6(b) nor the exclusionary clause in subsection 
6(d)(2) supports GAO's contention that nonimmigrant foreign workers can 
enter the Commonwealth during the transition period with H visas and 
work for employers who do not have the necessary permits under the 
system for transitional workers provided by subsection 6(d). 

(See comment 3.): 

As discussed above, subsection 6(b) permits foreign workers to seek an 
H-1B or H-2B visa authorizing them to work in the Commonwealth without 
regard to the numerical limitations that would otherwise apply. In the 
absence of this exemption, the decision of the federal officials to 
grant such visas to Guam or the Commonwealth would reduce the number 
available to employers in other parts of the United States. All the 
other requirements of the H visa program, however, would have to be met 
ï¿½ in particular the need to have a sponsoring employer who makes the 
necessary labor certification with respect to its inability to find a 
qualified United States citizen to fill the particular job. Subsection 
6(b) does not require federal officials to grant any H visas. It 
certainly does not specify that employers can obtain H visas for 
nonimmigrant foreign workers outside of the permit system set forth in 
subsection 6(d). 

(See comment 1.): 

If the drafters of H.R. 3079 as approved by the House of 
Representatives had intended to exempt the workers coming in under the 
H visa program from the Commonwealth-only transition program, they knew 
how to do so. In the version of H.R. 3079 that was the subject of 
hearings in August 2007, there was a provision for the use of 
employment-based immigrant visas. Before such visas could be used, the 
Secretary of Labor under subsection 6(c)(3) of the bill had to conclude 
"that exceptional circumstances exist with respect to the inability of 
employers in the Commonwealth to obtain sufficient work-authorized 
labor, in addition to the Commonwealth-only transitional workers 
authorized under section 103(d)." (emphasis supplied) As the United 
States Supreme Court has observed, "where Congress includes particular 
language in one section of a statute but omits it in another., it is 
generally presumed that Congress acts intentionally and purposely in 
the disparate inclusion or exclusion." Keene Corp. v. United States, 
508 U.S.200, 208 (1993) (quoting Russello v. United States, 464 U.S.16, 
23 (1983). 

The application of the permit system only to those nonimmigrant foreign 
workers "who would not otherwise be eligible for admission [under the 
INA]" cannot reasonably be interpreted to exclude all nonimmigrant 
foreign workers who would be eligible for H visas as GAO maintains. 
There was an obvious purpose for such an exemption ï¿½ to make clear that 
the permit system would not apply to nonimmigrant workers who are 
entitled to enter the United States under treaties with foreign 
countries; under the compacts of free association with Palau, the 
Marshalls, and the Federated States of Micronesia; or under one of the 
many specialized visa programs referenced by GAO in its draft report. 
The GAO interpretation would potentially exclude from the permit system 
many of the foreign workers that it is intended to reach. Such an 
interpretation might exclude from the permit system some foreign 
workers currently employed lawfully in the Commonwealth, who might be 
eligible for H visas. It also suggests that employers would be 
entitled, without numerical limitations of any kind, to bring workers 
into the Commonwealth under H visas at the same time that the number of 
workers subject to the permit system was being reduced on an annual 
basis toward the eventual objective of eliminating all such permits. 

(See comment 3.): 

B. The Permit System Necessarily Applies to All Foreign Workers in the 
Commonwealth: 

The provisions of the legislation dealing with the CNMI-only foreign 
worker program (with its permit system and annual reductions) indicate 
that they apply to workers entering the Commonwealth on H visas, as 
well as those workers currently in the Commonwealth who would be 
entitled to a nonimmigrant classification. 

Subsection 6(d) begins with this statement: "An alien who is seeking to 
enter the Commonwealth as a nonimmigrant worker may be admitted to 
perform work during the transition period subject to the following 
requirements [of the permit system]" This certainly covers foreign 
workers seeking to enter on an H-1B or H-2B visa. 

Subsection 6(d)(2) states: "No alien shall be granted nonimmigrant 
classification or a visa under this subsection unless the permit 
requirements established under this paragraph have been met." This 
subsection indicates that the permit system will cover both those 
foreign workers entering the Commonwealth with a visa and those workers 
already in the Commonwealth who could seek a nonimmigrant 
classification which would enable the worker to be employed by an 
employer with the necessary permit. 

Subsection 6(d)(3) provides that the Secretaries of Homeland Security 
and State shall establish the conditions for admitting such 
nonimmigrant workers during the transition period and states: "An alien 
admitted to the Commonwealth on the basis of such a visa shall be 
permitted to engage in employment only as authorized pursuant to the 
transition program."

These subsections make clear that all foreign workers are covered by 
the permit system and will be allowed to work in the Commonwealth only 
so long as their employer has a permit entitling the company to hire a 
nonimmigrant foreign worker. 

C. The GAO Interpretation Fails to Reflect the Purpose of the 
Legislation: 

The GAO interpretation is inconsistent with the principal objective of 
the legislation ï¿½ to reduce the number of nonimmigrant foreign workers 
in the Commonwealth (19,824 as of December 31, 2007) to zero by 
December 31, 2013, unless the transition period is extended until some 
later date. 

The legislation directs that the Commonwealth cannot increase the 
number of foreign workers present in the Commonwealth on the date of 
enactment of the legislation. It also provides that foreign workers 
currently employed lawfully in the Commonwealth may continue to be 
employed under their existing contracts after the transition program 
effective date, but no longer than two years after that date. The draft 
report's assertion that foreign workers will be available under the H 
visa program during the transitional period outside of the restrictions 
of the permit system cannot be squared with these provisions. As 
discussed earlier, the GAO draft report concludes also that all such H 
visas granted during the period up to December 31, 2013, must terminate 
no later than that date. 

(See comment 4.): 

The cap on foreign workers in the Commonwealth after the legislation 
becomes effective will necessarily limit the access of employers to 
foreign workers outside the Commonwealth who would qualify to come in 
under the H visa program. In the absence of new development ventures 
requiring skills not presently available within the existing workforce, 
it can be reasonably expected that employers will resort to the H visa 
alternative principally to replace foreign workers currently employed 
in the Commonwealth who, for one reason or another, leave their current 
job. 

Under these circumstances, it is difficult to reconcile the limitations 
of the permit system, where the number of permits must be reduced to 
zero, with the hypothetical H visa program under GAO's interpretation 
of the bill providing employers with access to an unlimited number of 
foreign workers entering on H visas, at least until December 31, 2013. 
Such dual, and conflicting, programs are inconsistent with the overall 
objectives of the legislation. The GAO report appears to assume that 
the same federal officials required to enforce the stringent provisions 
of the Commonwealth-only foreign worker permit system would conclude 
that Congress intended them to admit all qualified H visa applicants 
seeking to work in the Commonwealth (subject to the overall cap on 
foreign workers) without regard to the permit system. Most federal 
officials charged with implementing a new program would prefer 
attributing to Congress a more consistent and plausible approach to 
achieving its legislative objectives. 

III. The GAO Economic Analysis Should Not be Based on Any Single Legal 
Interpretation of the Legislation: 

The legislation currently awaiting action by the Senate is poorly 
drafted in two important respects. First, it is ambiguous and 
insufficiently clear in its meaning, which results in the different 
legal interpretations set forth in the GAO draft report and this 
letter. Second, the legislation grants the implementing federal 
agencies excessively broad discretion with respect to their shaping of 
the transition program for nonimmigrant foreign workers in the 
Commonwealth and the implementation of the visa waiver program for 
nonimmigrant visitors to Guam and the Commonwealth. The GAO draft 
report states repeatedly that it is unable to assess the likely impact 
of some of the bill's most important provisions in the absence of the 
future regulations to be drafted by the implementing agencies. 

(See comment 5.): 

Under these circumstances, we believe that GAO should not limit its 
economic impact analysis to any single legal interpretation of the 
legislation's most important provisions. We recommend instead that GAO 
identify the principal alternative interpretations of the legislation 
that might be adopted by the implementing agencies and discuss 
separately, and clearly, the different economic consequences that would 
result under each such interpretation. A thoughtful and careful 
analytical effort along these lines would best serve the requesting 
Members of Congress, the Commonwealth, and the implementing agencies. 

We are not suggesting that GAO has an obligation to address each and 
every possible interpretation of the legislation advanced by one or 
more imaginative commentators. We believe that the two substantive 

issues addressed in this letter provide examples of interpretations 
different from those advanced in the GAO draft report which might be 
the subject of separate economic analysis. Certainly the questions of 
when the transition period ends under the Iegislation, and whether 
workers entering the Commonwealth under H visas are exempt from the 
permit system, raise important issues that need to be acknowledged and 
analyzed by GAO in its economic impact report. 

The Commonwealth has been assured that GAO intends to prepare a 
"neutral" report based on the legislation, which we take to mean that 
the agency's economic analysis will be presently on a purely factual 
basis and not reflect any bias regarding the need for, or the merits 
of, the legislation. Such an analysis should, in our opinion, look at 
some of the critical issues raised by the bill with a clear 
understanding of the relevant facts and the alternative consequences of 
different agency decisions. A good example is provided by the question 
of whether, and when, the transition program (in the Commonwealth's 
view) or the permit system (in GAO's view) is extended for a period of 
up to five years. The GAO draft report states (page 20) that "The 
Secretary could issue the extension as early as desired within the 
transition period and up to 180 days before the extension of the 
transition period or any extension thereof." That is an accurate 
statement of the relevant statutory provision. But we believe it is 
very unrealistic to assume that the Secretary would seek an extension 
early in the transition period, in light of the fact that the House of 
Representatives shortened the transition period by four years (from 
December 31, 2017 to December 31, 2013) without any stated reason for 
so doing. It would be fair to conclude from this action that the House 
of Representatives concluded that it was feasible and desirable to 
remove all nonimmigrant foreign workers from the Commonwealth in less 
than five years after the transition program effective date. A very 
early decision by the Secretary to extend the period would appear to 
conflict with that legislative judgment. 

Because the extension decision is such a critical one in the 
administration of the transition program defined by the legislation, we 
suggest that the GAO analysis examine the economic impact of a decision 
not to grant an extension, a decision to grant in the last year of the 
period, and a decision to grant an extension at an earlier (but 
realistic) date. Such an analysis would be of valuable assistance to 
the implementing federal agencies, which are charged with the duty of 
enforcing the law with the least possible adverse effects on the 
Commonwealth, its citizens, and its foreign workers. 

We continue to believe that a copy of the legislation should be 
included in the GAO legal report so that readers of the report and the 
attached comments may more conveniently examine the exact text of the 
bill under discussion. We have also recommended that the Department of 
Justice be requested to submit its views regarding the draft GAO 
report. 

(See comment 6.): 

(See comment 7.): 

Thank you for your consideration of these comments. 

Sincerely,

Signed by: 

Howard P. Willens, Special Legal Counsel to the Governor:  

The following are GAO's comments on the Commonwealth of the Northern 
Mariana Islands' letter dated March 14, 2008. 

GAO Comments: 

1. The CNMI government contended that the legislation allows the 
exemptions from the numerical limitation on H visas to be extended 
beyond the end of the transition period in 2013. We continue to 
interpret the legislation to allow for an extension of the CNMI-only 
work permit program beyond 2013 at the discretion of the Secretary of 
Labor, but not to allow for an extension beyond 2013 of other 
provisions of the transition program, including the exemptions from the 
numerical limitations on H visas.[Footnote 69] As shown in appendix V, 
subsection 6(a)(2) of H.R. 3079 establishes a transition period 
"beginning on the transition program effective date and ending on 
December 31, 2013, except as provided in subsections (b) and (d)." 
Subsection 6(b) authorizes aliens to enter the CNMI with H visas 
without counting against the numerical caps established by law for H 
visas but confers no specific authority for extending this exemption 
beyond 2013. Subsection 6(d) authorizes CNMI-only work permits to be 
issued to employers for nonimmigrant workers who are not otherwise 
admissible under federal law. Subsection 6(d)(5) allows the Secretary 
of Labor to ascertain the labor needs of the CNMI and "determine 
whether an extension of up to 5 years of the provisions of this 
subsection is necessary to ensure an adequate number of workers" are 
available in the CNMI. The "provisions of this subsection" refers only 
to the provisions of subsection 6(d), the authorization for the CNMI- 
only work permit, and not to other programs available during the 
transition period. As the exemption from the numerical limitation on H 
visas is contained in subsection 6(b), the exemption could not be 
extended beyond 2013 without further legislation. Officials from the 
Department of Homeland Security, the agency responsible for 
implementing and administering the provisions of the transition period 
under the pending legislation, agreed in interviews with our 
interpretations of these provisions. The Department of Labor, which 
will have the authority to extend the CNMI-only work permit beyond 
2013, reviewed the draft report and provided no comments. The 
Department of the Interior generally agreed with our findings. 

2. The CNMI government relied in part on legislative history to support 
its assertion that the H cap extensions can be extended past 2013. We 
reviewed the House Report on which the CNMI relied and found nothing 
inconsistent with our interpretation as stated in this report. 

3. The CNMI government disagreed with our interpretation that the H 
visas authorized in subsection 6(b) are a separate process from the 
CNMI-only work permits authorized in subsection 6(d). According to the 
CNMI's interpretation, employers of workers admitted under H visas 
would have to obtain a CNMI-only work permit. However, the legislation 
does not state that H visas are to be provided under the CNMI-only 
permit work program. Also, subsection 6(d)(2) states that CNMI-only 
work permits are to be issued for workers "who would not otherwise be 
eligible for admission under the Immigration and Nationality Act (8 
U.S.C. ï¿½ 1101 et seq.)" The CNMI's contention that foreign workers who 
enter the CNMI with an H visa must also obtain the CNMI-only work 
permit directly conflicts with the language of the legislation. As H 
visas are clearly a part of the Immigration and Nationality Act, 
workers entering the CNMI with an H visa are necessarily excluded from 
the CNMI-only permit process. Presumably, the federally-administered 
permitting process for employers of H visa holders that is already in 
place in the United States would apply to H visa holders in the CNMI 
once federalization occurs, though the specifics of implementation will 
be at the discretion of the Department of Homeland Security. Officials 
from the Department of Homeland Security, which has responsibility for 
implementing the legislation, agreed in interviews with our 
interpretation of this provision. The Department of the Interior 
generally agreed with our findings. 

4. The CNMI incorrectly stated that "the GAO draft report concludes 
also that all such H visas granted during the period up to December 31, 
2013, must terminate no later than that date." While the caps would 
limit the availability of new H visas for CNMI workers after the 
transition period ends on December 31, 2013 or on December 31, 2014, we 
note that the length of admission and other terms and conditions for 
CNMI-only H nonimmigrants will be determined by DHS in its 
implementation of the transition program and, according to DHS 
officials, will adhere to federal requirements currently in place for H 
visa holders the federal requirements. According to the current federal 
requirements, (1) specialty workers who are admitted under H-1B visas 
may not be authorized to stay any longer than 3 years initially, and up 
to 6 years with extensions, and may not seek readmission for 1 year 
after leaving, and (2) foreign workers admitted under H-2B visas are 
authorized to stay for up to 1 year initially, and up to 3 years with 
extensions. 

5. The CNMI government contended that we should not base any further 
work regarding the impact of the legislation on the CNMI economy on a 
single legal interpretation. While the legislation is highly technical, 
we believe we have provided a reasonable, objective interpretation of 
the legislation that is consistent with the implementing agencies' 
views. Officials from the Department of Homeland Security, the primary 
implementing agency for the legislation, agreed in interviews with our 
interpretation of this legislation. The Department of Labor, the agency 
with the ability to extend the CNMI-only work permit program, reviewed 
the draft report and provided no comments. As such, we believe our 
interpretation of the legislation can be used appropriately as the 
basis of further work on the potential economic impact of the 
legislation. However, we agree such work should acknowledge the range 
of possible federal decisions regarding implementation of the 
legislation and regarding any extensions of the CNMI-only permit 
program. 

6. The CNMI government suggested that we include the text of the 
pending legislation in this report. We have included the text of H.R. 
3079, passed by the House, in appendix V. 

7. The CNMI government also recommended that the draft report be 
provided to the U.S. Department of Justice for comment. We did not 
provide the draft report to the Department of Justice for review 
because the pending legislation provides a limited role for the 
department. 

[End of section] 

Appendix VII: Comments from the U.S. Department of Homeland Security: 

U.S. Department of Homeland Security: 
Washington, DC 20528: 

US GAO: 

March 12, 2008: 

Mr. David Gootnick: 
Director, International Affairs and Trade: 
U.S. Government Accountability Office: 
441 G Street, NW: 
Washington, DC 20548: 

Dear Mr. Gootnick: 

RE: Draft Report GAO-08-466, Northern Mariana Islands: Pending 
Legislation Would Apply U.S. Immigration Law to the CNMI with a 
Transition Period (GAO Job Code 320567).

The Department of Homeland Security (DHS) appreciates the opportunity 
to review and comment on the draft report referenced above that 
addresses the expected impact of pending legislation that would apply 
U.S. immigration law to the Commonwealth of the Northern Mariana 
Islands (CNMI) with a transition period. 

In previous comments provided to GAO before issuance of the draft 
report, DHS noted that aliens in the CNMI could seek protection from 
persecution or torture. We ask that language to this effect be included 
in the final report, so as to ensure readers understand that DHS is 
mindful of U.S. Government treaty obligations during this transition 
period. 

In addition, DHS notes that the pending legislation would have direct 
effects on U.S. Customs and Border Protection (CBP) facilities, 
staffing and training requirements. Application of U.S. immigration law 
to the CNMI would require CBP, for example, to procure sufficient 
funding and human resources to establish CNMI ports of entry and/or 
expand existing facilities. Other DHS component agencies with a 
presence in the region also likely would be affected by the pending 
legislation in terms of staffing and resource requirements. 

Technical comments have been provided under separate cover. 

Sincerely,

Signed by: 

Steven J. Pecinovsky: 
Director: 
Departmental GAO/OIG Liaison Office: 
[hyperlink, http://www.dhs.gov]: 

[End of section] 

Appendix VIII: Comments from the U.S. Department of the Interior: 

The Associate Deputy Secretary Of The Interior: 
Washington, DC 20240: 

March 24, 2008: 

Mr. David Gootnik: 
Director, International Affairs and Trade: 
United States Government Accountability Office: 

Washington, DC 20548:

Dear Mr. Gootnik: 

Thank you for the opportunity to review and comment on the Government 
Accountability Office Draft Report No. GAO-08-466, entitled Northern 
Mariana Islands, Pending Legislation Would Apply U.S. Immigration Law 
to the CNMI with a Transition Period. In general, the Department of the 
Interior finds that the Report presents a fair and objective study on 
the effect of the new (pending) legislation. In addition, the 
Department's Office of Insular Affairs has provided the following 
information to your staff for consideration in the final report. 

* Page 17 (the second bullet point regarding lawful permanent 
residence): The Report's footnote actually expresses the issue more 
thoroughly. Aliens in the United States who have Lawful Permanent 
Residence, i.e., green cards, must not be absent from the United States 
for a specified number of years, or they lose their LPR status. 
Immediate relatives who have this status and who have come to live in 
the CNMI were in danger of losing their LPR status because they were 
technically outside the United States. The pending legislation would 
fix that problem by specifying that any time in the CNMI should be 
considered time in the United States for the purpose of determining 
someone's continued presence in the United States.

* Page 25: The statement that the CNMI "law also stipulates that all 
employers seeking worker permits for their temporary workers must be 
able to demonstrate that they advertised the position and were unable 
to find a qualified CNMI resident." The Report fails to note Section 
4526's litany of exemptions (included in Public Law 15-108). For 
example: 

* 4526(c) provides an incentive exemption to any employer who 
demonstrates that the local hire percentage for its management, 
professional, human resources or other specified high paying, skilled 
positions exceeds 30 percent of the employer's full-time workforce. 

* 4526(d) provides discretion to continue the waivers granted to the 
garment industry prior to January 1, 2007, regarding hiring of local 
employees. 

* As applicable in the Report, CNMI worker permit fees are annual. 
Thank you again for the opportunity to comment on the Draft Report. If 
you have any questions concerning the response, please communicate with 
Nikolao Pula, Acting Deputy Assistant Secretary of the Interior for 
Insular Affairs, at (202) 208-4736. 

Sincerely,

Signed by: 

James E. Cason: 

[End of section] 

Appendix IX: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

David Gootnick, (202) 512-3149 or [email protected]: 

Staff Acknowledgments: 

In addition to the contact named above, Emil Friberg, Assistant 
Director; Mark Speight, Assistant General Counsel; Marissa Jones, 
Analyst-in-Charge; Ashley Alley, Senior Attorney; and Reid Lowe, Senior 
Communications Analyst, made key contributions to this report. Diana 
Blumenfeld, Ben Bolitzer, Ming Chen, and Eddie Uyekawa also contributed 
to the report. Technical assistance was provided by George Taylor. 

[End of section] 

Footnotes: 

[1] Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America (Pub. L. 
No. 94- 241, ï¿½ 1, 90 Stat. 263 (Mar. 24, 1976), 48 U.S.C. ï¿½ 1801 note). 
The covenant was approved by the U.S. and CNMI governments, as well as 
by the CNMI people in a voting plebiscite. Under the covenant, the CNMI 
is a self-governing commonwealth in political union with, and under the 
sovereignty of, the United States. 

[2] In this report, we use the term foreign workers to refer to workers 
in the CNMI who are not U.S. citizens or lawful permanent residents. 
These workers are also sometimes called nonresident workers, guest 
workers, noncitizen workers, alien workers, or nonimmigrant workers. We 
do not use the term to refer to workers from the Freely Associated 
States of the Federated States of Micronesia, Republic of the Marshall 
Islands, and Republic of Palau, who are permitted to work in the United 
States, including the CNMI, under the Compacts of Free Association (48 
U.S.C. ï¿½ 1921 note). 

[3] The Northern Mariana Islands Immigration, Security, and Labor Act 
(H.R. 3079) passed the House of Representatives on December 11, 2007, 
and was placed on the Senate calendar as Title VII of S. 2483 on 
December 14, 2007. On January 30, 2008, the Senate Committee on Energy 
and Natural Resources reported S. 1634, containing the text of H.R. 
3079 as passed by the House. The text of the bill was included in S. 
2616, introduced on February 8, 2008, and placed on the Senate calendar 
on February 11, 2008. The text of the bill with some revisions was also 
included in S. 2739, introduced on March 10, 2008, and placed on the 
Senate calendar on March 11, 2008. The Senate Committee on Energy and 
Natural Resources held related hearings on February 8 and July 19, 
2007. The House Committee on Natural Resources, Subcommittee on Insular 
Affairs, held related hearings on April 19 and August 15, 2007. 

[4] Immigration laws include the Immigration and Nationality Act (INA) 
and all laws, conventions, and treaties of the United States relating 
to the immigration, exclusion, deportation, expulsion, or removal of 
aliens (8 U.S.C. ï¿½ 1101(a)(17)). The INA defines an alien as any person 
who is not a citizen or national of the United States. 

[5] Unless otherwise noted, transition period refers to the period 
ending in 2013 under H.R. 3079, passed by the House, or in 2014 under 
S. 2739, pending in the Senate. 

[6] The legislation includes several provisions related to Guam, 
including the expansion of options for nonimmigrants to enter and work 
in Guam. 

[7] 8 U.S.C. ï¿½1101 et. seq. 

[8] Federal immigration law defines admission as "the lawful entry of 
the alien into the United States after inspection and authorization by 
an immigration officer" (8 U.S.C. ï¿½1101(a)(13)(A)). 

[9] Both the CNMI's comments and the GAO response rely on H.R. 3079, 
passed by the House, as the basis for interpretation. Under S. 2739, 
pending in the Senate, the transition period would end December 31, 
2014. 

[10] GAO, U.S. Insular Areas: Economic, Fiscal, and Accountability 
Challenges, GAO-07-119 (Washington, D.C.: Dec. 12, 2006); and GAO, 
Commonwealth of the Northern Mariana Islands: Serious Economic, Fiscal, 
and Accountability Challenges, GAO-07-746T (Washington, D.C.: Apr. 19, 
2007). 

[11] U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Pub. L. No. 110-28, ï¿½ 8103, 
121 Stat. 188 (May 25, 2007)). 

[12] In 1947, the United Nations gave the United States authority to 
administer the Trust Territory of the Pacific Islands, which included 
the Northern Mariana Islands. The trusteeship over the Northern Mariana 
Islands was formally dissolved in 1986. 

[13] Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America (Pub. L. 
No. 94-241, ï¿½ 1, 90 Stat. 263 (Mar. 24, 1976), 48 U.S.C. ï¿½ 1801 note). 

[14] If such legislation does not apply generally to all states, it 
must specifically name the CNMI to become effective there. 

[15] The covenant also made certain provisions of the Social Security 
Act, the Public Health Service Act, and the Micronesian Claims Act 
applicable to the CNMI. 

[16] Section 506 of the Covenant applies certain provisions of the INA 
relating to citizenship and family-based permanent immigration to the 
CNMI. The T and U nonimmigrant provisions of the INA also apply to 
CNMI. See 8 U.S.C. ï¿½ 1101(a)(15)(T)-(U). In addition, the Covenant 
provided U.S. citizenship to legally qualified CNMI residents. 


[17] Exemptions from this requirement can be granted for businesses 
that employ fewer than five people, construction projects of limited 
duration, light manufacturing, and for employers who fill other full- 
time positions with substantially more than 30 percent of the workforce 
from citizens and permanent residents. 

[18] We did not review the extent to which the resident hiring 
requirements were enforced or implemented. 

[19] If a foreign worker's contract expires or terminates without 
renewal, the worker must be replaced with a citizen or permanent 
resident, unless the worker falls into an exempted job category. We did 
not review the extent to which the moratorium was enforced or 
implemented. 

[20] CNMI regulations for foreign investors also require a $100,000 
security deposit; however, CNMI officials were unable to verify this 
requirement. 

[21] 8 U.S.C. ï¿½ 1101(a)(15). 

[22] For purposes of the H-1B visa, "specialty occupation" is defined 
as one that requires a theoretical and practical application of a body 
of highly specialized knowledge, and attainment of a bachelor's or 
higher degree in that specific specialty as a minimum for entry into 
the United States (8 U.S.C. ï¿½ 1184(i)). H-1B(1) visas apply to 
specialty workers admitted under the U.S.-Chile Free Trade Agreement or 
the U.S.- Singapore Free Trade Agreement, and H-1C visas are available 
for temporary registered nurses. Unlike other nonimmigrant categories, 
H-1B and H-1C visa holders may lawfully seek to become a permanent 
resident of the United States at the end of the authorized nonimmigrant 
stay. 

[23] Under certain circumstances, workers are permitted to stay in H-1B 
status longer than six years. Under federal law, H-1Bs who have had a 
labor certification application or an employment-based immigrant 
petition pending for more than one year may be granted one-year 
extensions of their H-1B status until a decision is made on their 
request for permanent residency (American Competitiveness in the Twenty-
first Century Act of 2000, Pub. L. No. 106-313, ï¿½106(a) (Oct. 17, 
2000)). In addition, an alien is eligible for an extension of H-1B 
status if he or she is the beneficiary of an I-140 petition and would 
be eligible to be granted immigrant status but for the application of 
per country limitations applicable to immigrants under INA ï¿½ï¿½ 
203(b)(1), (2) or (3), (AC-21, Pub. L. No. 106-313, ï¿½104(c)). 

[24] H-2A employers must comply with the federal labor certification 
process, which determines whether the employment is agricultural in 
nature, whether it is open to U.S. workers and if qualified U.S. 
workers are available, the adverse impact of employment of a qualified 
alien, and whether employment conditions (e.g., housing) meet 
applicable requirements (8 C.F.R. ï¿½ 214.2(h)(5)(ii)). 

[25] The H-2B category applies to residents of foreign countries who 
are coming to the United States temporarily to perform nonagricultural 
temporary labor or service if unemployed persons capable of performing 
such labor or service are unable to be found in the United States (8 
U.S.C. ï¿½ 1101(a)(15)(H)(ii)(B)). 

[26] In the past, Congress has revised the numerical limitations 
applicable to some nonimmigrant categories. For example, the limitation 
for H-1B visas was 115,000 workers in fiscal years 1999 and 2000 and 
was 195,000 workers in fiscal years 2001 to 2003 (8 U.S.C. ï¿½ 
1184(g)(1)(A)). In addition, numerical limitations exist for other H 
categories, including H-1B DOD project workers, which may not exceed 
100 at any time; H-1C nurses, which may not exceed 500 in a fiscal 
year; and H-3 special education visitor exchange program participants, 
which may not exceed 50 (8 C.F.R. ï¿½214.2(h)(8)). 

[27] In August 2007, Congress passed legislation that provides DHS with 
the authority to admit countries with refusal rates for business and 
tourism visas that are between 3 and 10 percent under the Visa Waiver 
Program if the countries meet certain conditions. For example, 
countries must meet all mandated Visa Waiver Program security 
requirements and cooperate with the United States on counterterrorism 
initiatives. Before DHS can exercise this new authority, the 
legislation requires that the department complete certain actions aimed 
at enhancing the security of the Visa Waiver Program. These include 
establishing a biometric air exit system that can verify the departure 
of at least 97 percent of foreign nationals departing through U.S. 
airports and certifying that an electronic travel authorization system 
is fully operational. See Implementing Regulations of the 9/11 
Commission Act of 2007 (Pub.L. No. 110-53, ï¿½711, 121 Stat. 338 (Aug. 3, 
2007)). 

[28] Federal law also waives visa requirements for B admissions of 
nationals from Canada and some other Western Hemisphere countries, 
including Bermuda. 

[29] Federal regulations distinguish investing "a substantial amount of 
capital in a bona fide enterprise" from a relatively small amount of 
capital in a marginal enterprise solely for the purpose of earning a 
living (8 C.F.R. ï¿½ 214.2(e)(2)(iii)). 

[30] The Governor of the CNMI retains the authority to provide for 
primary elections for the delegate, in which case the delegate will be 
elected by a majority of the votes cast in any general election for 
which primaries are held. The delegate must be at least 25 years old, 
have been a citizen of the United States and a resident of the CNMI for 
at least 7 years prior to the election, be qualified to vote in the 
CNMI, and not be a candidate for any other office. 

[31] Upon the date of enactment of the legislation, the CNMI is 
required to implement a refugee protection program under the terms of 
its 2003 memorandum of understanding with DOI regarding the protection 
of refugees and cannot remove any alien whom the DHS protection 
consultant has deemed to be eligible for protection from persecution or 
torture. On the transition program effective date, the U.S. government 
will begin direct implementation of its treaty obligations with respect 
to aliens in the CNMI. 

[32] Aliens physically present in the CNMI are protected by the 
provisions of the 1967 Protocol Relating to the Status of Refugees, 
which generally prohibits removal of an alien to a country where he or 
she would likely be persecuted on account of race, religion, 
nationality, membership in a particular social group, or political 
opinion. Aliens are also protected by the provisions of the Convention 
Against Torture and Other Cruel, Inhuman, or Degrading Treatment or 
Punishment, which prohibits removal of an alien to a country where he 
or she would likely be tortured. In addition to international treaty 
obligations, federal law requires protecting these aliens by 
withholding removal pursuant to INA ï¿½ 241(b)(3), withholding removal 
under the Convention Against Torture pursuant to 8 C.F.R. ï¿½ 208.16, and 
deferring removal under the Convention Against Torture pursuant to 8 
C.F.R. ï¿½ 208.17. 

[33] Previous versions of similar legislation included different 
authorities for extending provisions of the transition period. The 
current legislation grants the Secretary of Labor the discretion to 
extend the issuance of CNMI-only permits beyond the end of the 
transition period. We do not interpret this provision to allow for 
uncapped H visas beyond 2013 or 2014. The CNMI government, however, 
interprets the current legislation to allow for extensions of the H 
visa cap exemptions, the CNMI-only permit, and other provisions of the 
transition period program beyond 2013 (2014 under S. 2739). In 
addition, the CNMI government interprets the H visa cap exemptions as 
being part of the CNMI-only permit program. 

[34] In any fiscal year, H-1B visas for certain specialty workers are 
limited to 65,000, and H-2B visas for other temporary workers are 
limited to 66,000 (8 U.S.C. ï¿½ 1184(g)(1)(A)(vii) and 8 U.S.C. ï¿½ 
1184(g)(1)(B)). Exemptions from the cap for H-1B visas exist for 
certain individuals, including those who hold a master's degree or 
higher from a U.S. institution and those who are employed with a 
nonprofit research or government research organization (8 U.S.C. ï¿½ 
1184(g)(5)). 

[35] These ineligible workers include those who do not meet the skill 
or education requirements of the H-1B visa but who are performing 
continuous work and, thus, do not meet the seasonal or temporary 
requirements of the H-2 visas or other specific requirements in H visa 
categories. 

[36] The pending legislation also includes a provision stating that 
people present in the CNMI or arriving in the CNMI during the 
transition period are not eligible to apply for asylum under federal 
law before January 1, 2014. According to DHS, they could apply for 
other forms of protection from persecution or torture in defense to 
removal. Under federal law, aliens present in the United States may 
generally apply for asylum if certain conditions are met. Aliens can be 
provided asylum under federal law if they can demonstrate that they 
meet the requirements for refugee status and are not otherwise 
disqualified (8 U.S.C. ï¿½ 1158). 

[37] Under S. 2739 pending in the Senate, the U.S. Secretary of Labor 
also must consult with the U.S. Secretary of Defense. 

[38] Illegitimate businesses include those that engage in prostitution, 
trafficking in minors, or any other activity that is illegal under 
federal or local law. 

[39] However, any alien who would be subject to removal under the INA 
for not having been properly admitted (i.e., not being legally present 
in the CNMI under CNMI or U.S. laws) would still be subject to removal 
under the proposed legislation. 

[40] In fiscal year 2005, the limit was reached on the first day, and 
the limit for fiscal year 2006 was reached before the fiscal year 
began. The fiscal year 2008 H-1B cap was reached within the first 2 
days petitions were accepted in April 2007. In addition, for H-2B 
visas, the cap for the first half of the visas available for fiscal 
year 2008 was reached in September 2007, and the cap for the second 
half was reached in January 2008. 

[41] In addition to the annual fee of $250 paid by employers, foreign 
workers in the CNMI are responsible for paying an annual alien 
registration fee of $25. 

[42] For our analysis, we converted the U.S. H visa range of fees to an 
annual range. H-1B visas are typically valid for up to 3 years, and 
petition fees range from $320 to $2,320, depending on whether fraud 
prevention and other supplemental fees are required. H-1B visas may be 
renewed for an additional 3 years, and the petition renewal fees are 
the same as the initial petition fees; however, the $500 fraud 
prevention and detection fee is required only the first time a 
petitioner files for a worker. H-2A visa fees are $320, in addition to 
$100 plus $10 for each additional worker for labor certification by 
DOL. H-2B visa fees are $470. See appendix III. 

[43] We did not analyze the full cost of obtaining a foreign worker in 
either the United States or the CNMI. Costs other than petition and 
visa fees and bonds may include renewal and status adjustment fees; 
biometric fees; fees for expedited service; user fees, such as 
immigration inspection fees included in the cost of airline tickets; 
legal costs; worker health examinations and care; transportation; 
benefits; and other costs. 

[44] U.S. immigration law provides authority to require nonimmigrant 
bonds on a case-by-case basis, but according to DHS, it is rarely used 
in practice. See 8 U.S.C. ï¿½ 1184(a), 8 C.F.R. ï¿½ 103.6(d)(2), and 8 
C.F.R. ï¿½ 214.1(a)(3)(iii). 

[45] Subject to waivers, federal law requires nonimmigrants to have a 
passport valid for at least 6 months from the date of expiration of 
their admission or contemplated initial period of stay authorizing them 
to go to another country and to have a valid nonimmigrant visa or 
border crossing identification card (8 U.S.C. ï¿½ 1182(a)(7)(B)(i)). 

[46] Aliens admitted under the visa waiver program for tourism or 
business must waive all rights to appeal their admissibility under the 
INA or to contest removal, unless they are seeking asylum or protection 
from torture. 

[47] 8 U.S.C. ï¿½1187. In addition, applicants to the U.S. Visa Waiver 
Program must have machine-readable biometric passports if issued after 
October 26, 2006, execute proper immigration forms, follow proper 
procedures for entry into the United States, have been determined not 
to represent a threat to the United States, have no previous 
immigration violation, possess a round-trip transportation ticket, and 
have successfully passed an automated background check. Nationals of 
countries not on the general Visa Waiver Program list may apply for 
visitor visas at U.S. consulates around the world. 

[48] For countries to qualify for participation in the Guam visa waiver 
program, they must have a business and tourism visa refusal rate of 
16.9 percent or less or a preclearance program pursuant to a bilateral 
agreement with the United States. Eligible countries must be in 
geographical proximity to Guam or have a substantial volume of 
nonimmigrants traveling to Guam and extend reciprocal privileges to 
U.S. citizens, cannot be designated by the Department of State as being 
of special humanitarian concern, and must pose no threat to the safety 
and security of the United States. 

[49] In order of the CNMI Attorney General dated March 23, 2004 
includes the Republic of Korea, Hong Kong, and Canada in the CNMI's 
permit waiver program, but CNMI officials said that this order was no 
longer in effect. The officials said that the CNMI currently waives 
permit requirements only for visitors from countries included in the 
U.S. Visa Waiver Program. They could not identify any document 
specifically revoking the 2004 order, and an official said the CNMI 
planned to issue clarification to the policy in the near future. While 
Canada is not included in the U.S. Visa Waiver Program, nationals of 
Canada may also, in most circumstances, qualify for visa-free travel to 
the United States. 

[50] DHS may suspend a country from the visa waiver program if DHS 
determines that an unacceptable number of visitors from that country 
are remaining unlawfully in either the CNMI or Guam, unlawfully 
obtaining entry into other parts of the United States, seeking asylum, 
or contesting removal. In addition, DHS may suspend a country from the 
program if it determines that the country poses a risk to the law 
enforcement or security interests of the United States, the CNMI, or 
Guam. DHS can also suspend the visa waiver program on a country-by- 
country basis for other good cause. 

[51] Countries currently included in the CNMI's comity entry permit 
program include Australia, Canada, Ireland, Japan, New Zealand, 
Singapore, Republic of Korea, and the United Kingdom. 

[52] Nationals of 31 designated countries and regions, including Iran, 
China's Fujian Province, and Indonesia, require waivers in order to 
enter the CNMI. The CNMI Attorney General has the authority to 
discontinue issuance of entry permits to residents of any country or 
subdivision thereof upon determining that the government of the country 
is unable to provide adequate information on backgrounds of persons 
embarking from that location; that the CNMI cannot promptly and 
accurately assess the backgrounds of such persons; or that the 
admission of such persons poses an unacceptable risk to the security, 
health, and welfare of the CNMI. 

[53] The CNMI and China currently have a memorandum of understanding 
that facilitates tourist travel to the CNMI. Under the pending 
legislation, this would likely be replaced by a U.S.-China memorandum 
of understanding that will be implemented in spring 2008 for Chinese 
tourists seeking to enter the United States. The U.S. memorandum 
facilitates Chinese leisure group travel to the United States by 
complying with Chinese regulatory requirements for Chinese tourists 
traveling abroad, but it has no effect on U.S. visa requirements. 

[54] In July 2006, we reported that DHS and State were consulting with 
13 countries, including the Republic of Korea, seeking admission into 
the U.S. Visa Waiver Program. The other countries were Bulgaria, 
Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, 
Malta, Poland, Romania, and Slovakia. As noted earlier, in August 2007, 
Congress passed legislation that provides DHS with the authority to 
admit countries with refusal rates between 3 and 10 percent under the 
Visa Waiver Program if the countries meet certain conditions and if DHS 
implements certain security measures. The Republic of Korea's refusal 
rate in fiscal year 2007 was 4.4 percent. GAO, Process for Admitting 
Additional Countries into the Visa Waiver Program, GAO-06-835R 
(Washington, D.C.: July 28, 2006) and GAO, Visa Waiver Program: 
Limitations with the Department of Homeland Security's Plan to Verify 
Departure of Foreign Nationals, GAO-08-458T (Washington, D.C.: Feb. 28, 
2008). 

[55] The new business must be established after 1990. 

[56] Federal law requires investments of between $1 million and $3 
million in a high-employment area. 

[57] CNMI regulations for foreign investors also require a $100,000 
security deposit; however, CNMI officials were unable to verify this 
requirement. 

[58] Aliens may also enter under E-1 treaty trader status to carry on 
international trade of a substantial nature. 

[59] Treaty countries are defined as foreign states with which a 
qualifying treaty of friendship, commerce, or navigation, or its 
equivalent, exists with the United States. 

[60] Generally, the lower the cost of the enterprise, the higher, 
proportionately, the investment must be to be considered a substantial 
amount of capital. In addition, for an E-2 visa, investment is defined 
as the placing of capital at commercial risk with the objective of 
generating a profit, and the investor must be in possession of and have 
total control over the capital being invested. The capital must be 
subject to loss if investment fortunes reverse, must be the investor's 
unsecured personal business capital or capital secured by personal 
assets, and must be irrevocably committed to the enterprise. 

[61] Other requirements must be developed by DHS and published as 
regulations at least 60 days before the start of the transition period. 

[62] As noted above, during the transition period, CNMI foreign 
investors converting to E-2 status do not have to meet the treaty 
requirements for E-2 visa holders. 

[63] CNMI and federal immigration laws currently provide for the 
admission of students. To qualify for a U.S. F visa under federal law, 
students must demonstrate appropriate financial support and must show 
proof of admission by an approved school, among other requirements. F 
visas are issued for the duration of the period in which the student is 
pursuing a full course of study, and spouses and minor children are 
allowed to accompany the F-visa holder in some circumstances. Related 
nonimmigrant categories available for study purposes include J exchange 
visitors and M vocational students. 

[64] Both the CNMI's comments and the GAO response rely on H.R. 3079, 
passed by the House, as the basis for interpretation. Under S. 2739, 
pending in the Senate, the transition period would end December 31, 
2014. 

[65] 8 U.S.C. ï¿½1101 et. seq. 

[66] Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America (Pub. L. 
No. 94-241, ï¿½ 1, 90 Stat. 263 (Mar. 24, 1976) and 48 U.S.C. ï¿½ 1801). 

[67] U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007 (Pub. L. No. 110-28, ï¿½8103, 121 
Stat. 188 (May 25, 2007)). 

[68] H.R. Rep. 110-469, Amending the Joint Resolution Approving the 
Covenant to Establish a Commonwealth of the Northern Mariana Islands, 
and for Other Purposes (Dec. 4, 2007). 

[69] Subsections (a)(3)(A)-(C) provide for a delay of the transition 
program effective date by 180 days if the Secretary of Homeland 
Security, after consultation with the other federal agencies and the 
Commonwealth, so determines, subject to notification of Congress of the 
proposed delay and a deferral of such extension for 30 days after the 
notification of Congress. 

[70] As originally introduced in the House of Representatives, H.R.3079 
made no reference to subsection 6(b) in subsection 6(a)(2) as providing 
any basis for a modification of the December 31, 2013 date terminating 
the transition period. No explanation is found in the House Committee 
report for the addition of this subsection in the version of the bill 
reported out by the Committee. 

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