That this Act may be 
referred to as the ``Insular Areas Policy Act''.
    Sec. 2. Definitions.--For the purposes of this Act:
            (1) The term ``Secretary'' means the Secretary of the 
        Interior;
            (2) The term ``insular area'' means the territories of 
        Guam, the Virgin Islands, American Samoa, the Commonwealth of 
        the Northern Mariana Islands, and the Trust Territory of the 
        Pacific Islands (Palau) until such time as the Trust Territory 
        of the Pacific Islands is terminated; and
            (3) The term ``Council'' means the Insular Areas Policy 
        Council as established under section 3 of this Act.
    Sec. 3. Insular Areas Policy Council.--(a) In order to coordinate 
the actions of the Federal Government with respect to the insular areas 
under the jurisdiction of the Secretary, there is hereby established an 
Insular Areas Policy Council.
    (b) The Council shall be composed of the following Federal 
officials or their designees: the Secretaries of State, Defense, 
Commerce, Treasury, Labor, Health and Human Services, Agriculture, 
Housing and Urban Development, Education, Veterans Affairs, the 
Administrator of the Small Business Administration, the Administrator 
of the Environmental Protection Agency, the Director of the Federal 
Emergency Management Agency, the Attorney General, and the Secretary of 
the Interior who shall serve as Chairman of the Council. The Chairman 
may request the participation of any other Federal agency in the work 
of the Council.
    (c) The Council shall meet at such time as the Chairman may 
request, but not less often than twice a year to:
            (1) Review the activities of the Department of the Interior 
        and other Federal agencies with respect to the insular areas;
            (2) Identify Federal funding priorities with respect to the 
        insular areas;
            (3) Review and approve, with any modifications decided upon 
        by the Council, the ``State of the Islands'' report pursuant to 
        section 4 of this bill;
            (4) Determine the appropriate role of the insular areas in 
        the foreign and domestic policy of the United States and the 
        effects of such policy on those areas;
            (5) Make such recommendations to the President and the 
        Congress regarding the insular areas as they determine to be 
        appropriate; and
            (6) Consider any other appropriate matters which Council 
        members may suggest.
    Sec. 4. Report.--(a) The President shall prepare and transmit a 
``State of the Islands'' report (hereinafter in this section referred 
to as the ``Report'') to the appropriate committees of the United 
States House of Representatives and the Committee on Energy and Natural 
Resources of the United States Senate not later than March 1 of each 
year.
    (b) Each Federal agency with programs operating in the insular 
areas under the jurisdiction of the Secretary of the Interior shall 
report to the Secretary on such activities no later than November 15 of 
each year. The Secretary of the Interior shall prepare a draft of the 
Report and submit such draft to the head of government of each of the 
insular areas for comment. The Secretary shall then submit the Report, 
with such changes as he deems appropriate, to the Insular Areas Policy 
Council along with the comments which he has received from the insular 
area governments for review no later than January 15 of each year. 
After consideration by the Council, the Report shall be submitted to 
the President, with any modifications decided upon by the Council, for 
transmittal to the Congress.
    (c) For each of the insular areas the Report shall include data 
summarizing social, economic, and political conditions and trends 
through the preceding fiscal years; a statement of current policy 
issues, foreseeable future developments, and recommended short-term and 
long-term policy objectives. The report shall include, but not be 
limited to, information for each insular area on: population; 
immigration and emigration; public health; crime and law enforcement; 
public infrastructure including utilities, transportation and 
communications; housing; income; private sector activities and 
development potential; employment; education and training; the fiscal 
position of the local government; amounts and uses of Federal direct 
and indirect assistance including, but not limited to, tax and trade 
policies; the efficiency of local government; international obligations 
or undertakings regarding the area; compliance with legislative 
mandates; a summary of any relevant Federal agency reports or audits; 
the applicability or inapplicability of Federal statutory and 
administrative actions and their effect; the effectiveness and delivery 
of Federal programs; significant differences in the treatment of the 
area or its residents under any Federal policy or program relative to 
the treatment of the States or their citizens, including the statutory 
basis for such treatment, the purposes therefor, and the effects 
thereof; and such information as is relevant to his responsibilities in 
the Republic of the Marshall Islands and the Federated States of 
Micronesia under Public Law 99-239, and the Republic of Palau after 
termination of the Trust Territory of the Pacific Islands. The Report 
shall clearly state the policy objectives of the President with regard 
to each of the insular areas, together with the specific proposals 
needed to accomplish such policy objectives.
    Sec. 5. Duties of the Secretary.--The Secretary shall:
    (a) Provide Federal agencies with such information and advice as 
may be necessary to structure Federal programs, laws, or regulations 
affecting any insular area to the political, social, cultural, and 
economic conditions in such insular area to further the objective of 
such program, law, or regulation and to prevent or reduce any adverse 
effect upon such insular area;
    (b) Inform the local government of any insular area of any Federal 
action which would significantly affect such insular area; solicit the 
comments and recommendations of such local government and provide those 
comments and recommendations together with the Secretary's analysis and 
advice to the head of the Department or Agency proposing such action; 
and
    (c) In consultation with the governments of the insular areas, 
assist in the development of the priorities for, and the levels of, 
Federal assistance for the next fiscal year, including recommendations 
with respect to the allocation of funds among the various agencies with 
responsibilities in any of the insular areas and on the appropriate 
level of activity by each such agency in order to achieve Federal 
policy objectives.
    Sec. 6. Use of Federal Agencies.--To the maximum extent 
practicable, the Secretary is authorized to use the personnel and 
services of other Federal agencies in carrying out his responsibilities 
with respect to the insular areas. The head of each Federal agency is 
directed to cooperate with the Secretary and to make such personnel and 
services available as the Secretary may request. The Secretary shall 
reimburse other Federal agencies for the cost of the use of personnel 
and services except for the cost of salary and base benefits, unless 
such costs are authorized to be provided on a non-reimbursable basis.
    Sec. 7. Authorization.--There are hereby authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this Act.
Insular Areas Policy Act - Establishes an Insular Areas Policy Council to coordinate the actions of the Federal Government with respect to the insular areas. 
Directs the Council to:  (1) review the activities of Federal agencies with respect to the insular areas; (2) identify Federal funding priorities with respect to such areas; (3) review the "State of the Islands" report; and (4) determine the appropriate role of such areas in U.S. domestic and foreign policy and the effects of such policies on those areas. 
Requires the President to transmit a "State of the Islands" report to specified congressional committees that shall include data summarizing social, economic, and political conditions, a statement of current policy issues, foreseeable future developments, and recommended policy objectives for each of the insular areas. 
Directs the Secretary of the Interior to:  (1) provide Federal agencies with assistance necessary to structure Federal programs or laws affecting insular areas to further the objectives of such programs or laws and prevent adverse impacts; (2) inform local governments of such areas of any Federal action which would affect such areas and solicit their comments and recommendations regarding such actions; and (3) assist in the development of priorities for, and levels of, Federal assistance for such areas. 
Authorizes appropriations.
Insular Areas Policy Act