I 

108TH CONGRESS 

1ST SESSION H. R. 2522

To amend the Organic Act of Guam to authorize the Secretary of the 

Interior to reduce, release, or waive amounts owed by the Government 

of Guam to the United States to offset unreimbursed Compact impact 

expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 19, 2003

Ms. BORDALLO (for herself, Mr. GALLEGLY, Mr. RAHALL, Mr. 

FALEOMAVAEGA, Mr. REHBERG, Mr. ABERCROMBIE, and Mr. CASE) introduced the following bill; which was referred to the Committee on Resources 

A BILL

To amend the Organic Act of Guam to authorize the Secretary of the Interior to reduce, release, or waive 

amounts owed by the Government of Guam to the United 

States to offset unreimbursed Compact impact expenses.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Compact Impact Rec5 onciliation Act’’. 

6 SEC. 2. COMPACT IMPACT RECONCILIATION. 

7 (a) FINDINGS.—Congress finds the following: 
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1 (1) In enacting the Compact of Free Associa2 tion Act of 1985 (Public Law 99–239), Congress au3 thorized unrestricted migration from the Federated 

4 States of Micronesia, the Republic of the Marshall 

5 Islands, and the Republic of Palau to the United 

6 States. Public Law 99–239 stated that if any ad7 verse consequences to Guam resulted from imple8 mentation of the Compacts of Free Association, the 

9 Congress would act sympathetically and expedi10 tiously to redress those adverse consequences. 

11 (2) The General Accounting Office has reported 

12 that such migration permitted under the Compacts 

13 of Free Association has had a significant impact on 

14 Guam. 

15 (3) By placing demands on local government 

16 for health, educational, and other social services, mi17 gration under the Compacts of Free Association has 

18 adversely affected the budgetary resources of the 

19 Government of Guam. 

20 (4) Insufficient sums have been appropriated to 

21 cover the costs incurred by the Government of Guam 

22 resulting from increased demands placed on health, 

23 educational, and other social services by citizens of 

24 the Federated States of Micronesia, the Republic of 

25 the Marshall Islands, and the Republic of Palau. 
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1 (5) The Government of Guam has provided 

2 health, educational, and other social services in good 

3 faith with the expectation that such incurred costs 

4 would be reimbursed by the United States. 

5 (6) Guam has experienced a severe economic 

6 crisis in recent years which has been exacerbated by 

7 expenses incurred related to Compact migration 

8 without adequate reimbursement from the United 

9 States. 

10 (7) The Government of Guam has accrued sig11 nificant obligations to the United States Govern12 ment, including but not limited to—

13 (A) $9,000,000 owed by the Guam Water14 works Authority to the Department of the Navy 

15 for water consumption; 

16 (B) $3,000,000 owed by the Guam Com17 munity College to the Department of Education 

18 for construction of a student housing facility; 

19 (C) $40,000,000 owed by the Government 

20 of Guam in local matching funds to the Depart21 ment of Homeland Security for Typhoon 

22 Chata’an (FEMA–1426–DR) and Supertyphoon 

23 Pongsona (FEMA–1446–DR) disaster assist24 ance; and 
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1 (D) $105,000,000 owed by the Guam Tele2 phone Authority to the Department of Agri3 culture for telephone infrastructure improve4 ments. 

5 (8) Congress has the authority to reconcile the 

6 amounts that have not been appropriated to Guam 

7 for Compact impact assistance with obligations owed 

8 by the Government of Guam to the United States. 

9 (9) Reconciliation is in the national interest and 

10 would promote good will in the future renewal of the 

11 Compacts of Free Association and the economic re12 covery of Guam. 

13 (b) IN GENERAL.—The Organic Act of Guam (48 

14 U.S.C. 1421 et seq.) is amended by adding at the end 

15 the following new section: 

16 ‘‘SEC. 36. The Secretary of the Interior may reduce, 

17 release, or waive all or part of any amounts owed by the 

18 Government of Guam (or its autonomous agencies or in19 strumentalities) to any department, agency, independent 

20 agency, office, or instrumentality of the United States.’’.

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