110TH CONGRESS 

1ST SESSION H. R. 2705 

AN ACT 

To amend the Compact of Free Association Amendments 

Act of 2003, and for other purposes. 

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

2 This Act may be cited as the ‘‘Compacts of Free As3 sociation Amendments Act of 2007’’. 

4 SEC. 2. APPROVAL OF AGREEMENTS. 

5 (a) IN GENERAL.—Section 101 of the Compact of 

6 Free Association Amendments Act of 2003 (48 U.S.C. 

7 1921) is amended— 

8 (1) in the first sentence of subsection (a), by in9 serting before the period at the end the following: ‘‘, 

10 including Article X of the Federal Programs and 

11 Services Agreement Between the Government of the 

12 United States and the Government of the Federated 

13 States of Micronesia, as amended under the Agree14 ment to Amend Article X that was signed by those 

15 two Governments on June 30, 2004, which shall 

16 serve as the authority to implement the provisions 

17 thereof’’; and 

18 (2) in the first sentence of subsection (b), by in19 serting before the period at the end the following: ‘‘, 

20 including Article X of the Federal Programs and 

21 Services Agreement Between the Government of the 

22 United States and the Government of the Republic 

23 of the Marshall Islands, as amended under the 

24 Agreement to Amend Article X that was signed by 

25 those two Governments on June 18, 2004, which 
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1 shall serve as the authority to implement the provi2 sions thereof’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 subsection (a) shall be effective as of April 30, 2008. 

5 SEC. 3. FUNDS TO FACILITATE FEDERAL ACTIVITIES. 

6 Unobligated amounts appropriated before the date of 

7 the enactment of this Act pursuant to section 

8 105(f)(1)(A)(ii) of the Compact of Free Association 

9 Amendments Act of 2003 shall be available to both the 

10 United States Agency for International Development and 

11 the Federal Emergency Management Agency to facilitate 

12 each agency’s activities under the Federal Programs and 

13 Services Agreements. 

14 SEC. 4. CONFORMING AMENDMENT. 

15 (a) IN GENERAL.—Section 105(f)(1)(A) of the Com16 pact of Free Association Amendments Act of 2003 (48 

17 U.S.C. 1921d(f)(1)(A)) is amended to read as follows: 

18 ‘‘(A) EMERGENCY AND DISASTER ASSIST19 ANCE.— 

20 ‘‘(i) IN GENERAL.—Subject to clause 

21 (ii), section 221(a)(6) of the U.S.–FSM 

22 Compact and section 221(a)(5) of the 

23 U.S.–RMI Compact shall each be con24 strued and applied in accordance with the 

25 two Agreements to Amend Article X of the 
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1 Federal Programs and Service Agreements 

2 signed on June 30, 2004, and on June 18, 

3 2004, respectively, provided that all activi4 ties carried out by the United States Agen5 cy for International Development and the 

6 Federal Emergency Management Agency 

7 under Article X of the Federal Programs 

8 and Services Agreements may be carried 

9 out notwithstanding any other provision of 

10 law. In the sections referred to in this 

11 clause, the term ‘United States Agency for 

12 International Development, Office of For13 eign Disaster Assistance’ shall be con14 strued to mean ‘the United States Agency 

15 for International Development’. 

16 ‘‘(ii) DEFINITION OF WILL PROVIDE

17 FUNDING.—In the second sentence of 

18 paragraph 12 of each of the Agreements 

19 described in clause (i), the term ‘will pro20 vide funding’ means will provide funding 

21 through a transfer of funds using Stand22 ard Form 1151 or a similar document or 

23 through an interagency, reimbursable 

24 agreement.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall be effective as of April 30, 2008. 

3 SEC. 5. CLARIFICATIONS REGARDING PALAU. 

4 Section 105(f)(1)(B) of the Compact of Free Associa5 tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(B)) 

6 is amended— 

7 (1) in clause (ii)(II), by striking ‘‘and its terri8 tories’’ and inserting ‘‘, its territories, and the Re9 public of Palau’’; 

10 (2) in clause (iii)(II), by striking ‘‘, or the Re11 public of the Marshall Islands’’ and inserting ‘‘, the 

12 Republic of the Marshall Islands, or the Republic of 

13 Palau’’; and 

14 (3) in clause (ix)— 

15 (A) by striking ‘‘Republic’’ both places it 

16 appears and inserting ‘‘government, institu17 tions, and people’’; 

18 (B) by striking ‘‘2007’’ and inserting 

19 ‘‘2009’’; and 

20 (C) by striking ‘‘was’’ and inserting 

21 ‘‘were’’. 

22 SEC. 6. AVAILABILITY OF LEGAL SERVICES. 

23 Section 105(f)(1)(C) of the Compact of Free Associa24 tion Amendments Act of 2003 (48 U.S.C. 1921d(f)(1)(C)) 

25 is amended by inserting before the period at the end the 
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1 following: ‘‘, which shall also continue to be available to 

2 the citizens of the Federated States of Micronesia, the Re3 public of Palau, and the Republic of the Marshall Islands 

4 who legally reside in the United States (including terri5 tories and possessions)’’. 

6 SEC. 7. TECHNICAL AMENDMENTS. 

7 (a) TITLE I.— 

8 (1) SECTION 177 AGREEMENT.—Section 

9 103(c)(1) of the Compact of Free Association 

10 Amendments Act of 2003 (48 U.S.C. 1921b(c)(1)) is 

11 amended by striking ‘‘section 177’’ and inserting 

12 ‘‘Section 177’’. 

13 (2) INTERPRETATION AND UNITED STATES

14 POLICY.—Section 104 of the Compact of Free Asso15 ciation Amendments Act of 2003 (48 U.S.C. 1921c) 

16 is amended— 

17 (A) in subsection (b)(1), by inserting ‘‘the’’ 

18 before ‘‘U.S.–RMI Compact,’’; 

19 (B) in subsection (e)— 

20 (i) in the matter preceding subpara21 graph (A) of paragraph (8), by striking 

22 ‘‘to include’’ and inserting ‘‘and include’’; 

23 (ii) in paragraph (9)(A), by inserting 

24 a comma after ‘‘may’’; and 
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1 (iii) in paragraph (10), by striking 

2 ‘‘related to service’’ and inserting ‘‘related 

3 to such services’’; and 

4 (C) in the first sentence of subsection (j), 

5 by inserting ‘‘the’’ before ‘‘Interior’’. 

6 (3) SUPPLEMENTAL PROVISIONS.—Section 

7 105(b)(1) of the Compact of Free Association 

8 Amendments Act of 2003 (48 U.S.C. 1921d(b)(1)) 

9 is amended by striking ‘‘Trust Fund’’ and inserting 

10 ‘‘Trust Funds’’. 

11 (b) TITLE II.— 

12 (1) U.S.–FSM COMPACT.—The Compact of 

13 Free Association, as amended, between the Govern14 ment of the United States of America and the Gov15 ernment of the Federated States of Micronesia (as 

16 provided in section 201(a) of the Compact of Free 

17 Association Amendments Act of 2003 (117 Stat. 

18 2757)) is amended— 

19 (A) in section 174— 

20 (i) in subsection (a), by striking 

21 ‘‘courts’’ and inserting ‘‘court’’; and 

22 (ii) in subsection (b)(2), by striking 

23 ‘‘the’’ before ‘‘November’’; 

24 (B) in section 177(a), by striking ‘‘, or 

25 Palau’’ and inserting ‘‘(or Palau)’’; 
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1 (C) in section 179(b), by striking ‘‘amend2 ed Compact’’ and inserting ‘‘Compact, as 

3 amended,’’; 

4 (D) in section 211— 

5 (i) in the fourth sentence of sub6 section (a), by striking ‘‘Compact, as 

7 Amended, of Free Association’’ and insert8 ing ‘‘Compact of Free Association, as 

9 amended’’; 

10 (ii) in the fifth sentence of subsection 

11 (a), by striking ‘‘Trust Fund Agreement,’’ 

12 and inserting ‘‘Agreement Between the 

13 Government of the United States of Amer14 ica and the Government of the Federated 

15 States of Micronesia Implementing Section 

16 215 and Section 216 of the Compact, as 

17 Amended, Regarding a Trust Fund (Trust 

18 Fund Agreement),’’; 

19 (iii) in subsection (b)— 

20 (I) in the first sentence, by strik21 ing ‘‘Government of the’’ before ‘‘Fed22 erated’’; and 

23 (II) in the second sentence, by 

24 striking ‘‘Sections 321 and 323 of the 

25 Compact of Free Association, as 
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1 Amended’’ and inserting ‘‘Sections 

2 211(b), 321, and 323 of the Compact 

3 of Free Association, as amended,’’; 

4 and 

5 (iv) in the last sentence of subsection 

6 (d), by inserting before the period at the 

7 end the following: ‘‘and the Federal Pro8 grams and Services Agreement referred to 

9 in section 231’’; 

10 (E) in the first sentence of section 215(b), 

11 by striking ‘‘subsection(a)’’ and inserting ‘‘sub12 section (a)’’; 

13 (F) in section 221— 

14 (i) in subsection (a)(6), by inserting 

15 ‘‘(Federal Emergency Management Agen16 cy)’’ after ‘‘Homeland Security’’; and 

17 (ii) in the first sentence of subsection 

18 (c), by striking ‘‘agreements’’ and inserting 

19 ‘‘agreement’’; 

20 (G) in the second sentence of section 222, 

21 by inserting ‘‘in’’ after ‘‘referred to’’; 

22 (H) in the second sentence of section 232, 

23 by striking ‘‘sections 102 (c)’’ and all that fol24 lows through ‘‘January 14, 1986)’’ and insert-
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1 ing ‘‘section 102(b) of Public Law 108–188, 

2 117 Stat. 2726, December 17, 2003’’; 

3 (I) in the second sentence of section 252, 

4 by inserting ‘‘, as amended,’’ after ‘‘Compact’’; 

5 (J) in the first sentence of the first undes6 ignated paragraph of section 341, by striking 

7 ‘‘Section 141’’ and inserting ‘‘section 141’’; 

8 (K) in section 342— 

9 (i) in subsection (a), by striking ‘‘14 

10 U.S.C. 195’’ and inserting ‘‘section 195 of 

11 title 14, United States Code’’; and 

12 (ii) in subsection (b)— 

13 (I) by striking ‘‘46 U.S.C. 

14 1295(b)(6)’’ and inserting ‘‘section 

15 1303(b)(6) of the Merchant Marine 

16 Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 

17 and 

18 (II) by striking ‘‘46 U.S.C. 

19 1295b(b)(6)(C)’’ and inserting ‘‘sec20 tion 1303(b)(6)(C) of that Act’’; 

21 (L) in the third sentence of section 354(a), 

22 by striking ‘‘section 442 and 452’’ and insert23 ing ‘‘sections 442 and 452’’; 
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1 (M) in section 461(h), by striking ‘‘Tele2 communications’’ and inserting ‘‘Telecommuni3 cation’’; 

4 (N) in section 462(b)(4), by striking ‘‘of 

5 Free Association’’ the second place it appears; 

6 and 

7 (O) in section 463(b), by striking ‘‘Articles 

8 IV’’ and inserting ‘‘Article IV’’. 

9 (2) U.S.–RMI COMPACT.—The Compact of 

10 Free Association, as amended, between the Govern11 ment of the United States of America and the Gov12 ernment of the Republic of the Marshall Islands (as 

13 provided in section 201(b) of the Compact of Free 

14 Association Amendments Act of 2003 (117 Stat. 

15 2795)) is amended— 

16 (A) in section 174(a), by striking ‘‘court’’ 

17 and inserting ‘‘courts’’; 

18 (B) in section 177(a), by striking the 

19 comma before ‘‘(or Palau)’’; 

20 (C) in section 179(b), by striking ‘‘amend21 ed Compact,’’ and inserting ‘‘Compact, as 

22 amended,’’; 

23 (D) in section 211— 

24 (i) in the fourth sentence of sub25 section (a), by striking ‘‘Compact, as 
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1 Amended, of Free Association’’ and insert2 ing ‘‘Compact of Free Association, as 

3 amended’’; 

4 (ii) in the first sentence of subsection 

5 (b), by striking ‘‘Agreement between the 

6 Government of the United States and the 

7 Government of the Republic of the Mar8 shall Islands Regarding Miliary Use and 

9 Operating Rights’’ and inserting ‘‘Agree10 ment Regarding the Military Use and Op11 erating Rights of the Government of the 

12 United States in the Republic of the Mar13 shall Islands concluded Pursuant to Sec14 tions 321 and 323 of the Compact of Free 

15 Association, as Amended (Agreement be16 tween the Government of the United 

17 States and the Government of the Republic 

18 of the Marshall Islands Regarding Military 

19 Use and Operating Rights)’’; and 

20 (iii) in the last sentence of subsection 

21 (e), by inserting before the period at the 

22 end the following: ‘‘and the Federal Pro23 grams and Services Agreement referred to 

24 in section 231’’; 

25 (E) in section 221(a)— 
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1 (i) in the matter preceding paragraph 

2 (1), by striking ‘‘Section 231’’ and insert3 ing ‘‘section 231’’; and 

4 (ii) in paragraph (5), by inserting 

5 ‘‘(Federal Emergency Management Agen6 cy)’’ after ‘‘Homeland Security’’; 

7 (F) in the second sentence of section 232, 

8 by striking ‘‘sections 103(m)’’ and all that fol9 lows through ‘‘(January 14, 1986)’’ and insert10 ing ‘‘section 103(k) of Public Law 108–188, 

11 117 Stat. 2734, December 17, 2003’’; 

12 (G) in the first sentence of section 341, by 

13 striking ‘‘Section 141’’ and inserting ‘‘section 

14 141’’; 

15 (H) in section 342— 

16 (i) in subsection (a), by striking ‘‘14 

17 U.S.C. 195’’ and inserting ‘‘section 195 of 

18 title 14, United States Code’’; and 

19 (ii) in subsection (b)— 

20 (I) by striking ‘‘46 U.S.C. 

21 1295(b)(6)’’ and inserting ‘‘section 

22 1303(b)(6) of the Merchant Marine 

23 Act, 1936 (46 U.S.C. 1295b(b)(6))’’; 

24 and 
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1 (II) by striking ‘‘46 U.S.C. 

2 1295b(b)(6)(C)’’ and inserting ‘‘sec3 tion 1303(b)(6)(C) of that Act’’; 

4 (I) in the third sentence of section 354(a), 

5 by striking ‘‘section 442 and 452’’ and insert6 ing ‘‘sections 442 and 452’’; 

7 (J) in the first sentence of section 443, by 

8 inserting ‘‘, as amended.’’ after ‘‘the Compact’’; 

9 (K) in the matter preceding paragraph (1) 

10 of section 461(h)— 

11 (i) by striking ‘‘1978’’ and inserting 

12 ‘‘1998’’; and 

13 (ii) by striking ‘‘Telecommunications’’ 

14 and inserting ‘‘Telecommunication Union’’; 

15 and 

16 (L) in section 463(b), by striking ‘‘Article’’ 

17 and inserting ‘‘Articles’’. 

18 SEC. 8. TRANSMISSION OF VIDEOTAPE PROGRAMMING. 

19 Section 111(e)(2) of title 17, United States Code, is 

20 amended by striking ‘‘or the Trust Territory of the Pacific 

21 Islands’’ and inserting ‘‘the Federated States of Micro22 nesia, the Republic of Palau, or the Republic of the Mar23 shall Islands’’. 
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1 SEC. 9. PALAU ROAD MAINTENANCE. 

2 The Government of the Republic of Palau may de3 posit the payment otherwise payable to the Government 

4 of the United States under section 111 of Public Law 

5 101–219 (48 U.S.C. 1960) into a trust fund if— 

6 (1) the earnings of the trust fund are expended 

7 solely for maintenance of the road system con8 structed pursuant to section 212 of the Compact of 

9 Free Association between the Government of the 

10 United States of America and the Government of 

11 Palau (48 U.S.C. 1931 note); and 

12 (2) the trust fund is established and operated 

13 pursuant to an agreement entered into between the 

14 Government of the United States and the Govern15 ment of the Republic of Palau. 

16 SEC. 10. CLARIFICATION OF TAX-FREE STATUS OF TRUST 

17 FUNDS. 

18 In the U.S.–RMI Compact, the U.S.–FSM Compact, 

19 and their respective trust fund subsidiary agreements, for 

20 the purposes of taxation by the United States or its sub21 sidiary jurisdictions, the term ‘‘State’’ means ‘‘State, ter22 ritory, or the District of Columbia’’. 

23 SEC. 11. TRANSFER OF NAVAL VESSELS TO CERTAIN FOR24 EIGN RECIPIENTS. 

25 (a) TRANSFERS BY GRANT.—The President is au26 thorized to transfer vessels to foreign countries on a grant 
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1 basis under section 516 of the Foreign Assistance Act of 

2 1961 (22 U.S.C. 2321j), as follows: 

3 (1) TURKEY.—To the Government of Turkey— 

4 (A) the OLIVER HAZARD PERRY class 

5 guided missile frigates GEORGE PHILIP 

6 (FFG–12) and SIDES (FFG–14); and 

7 (B) the OSPREY class minehunter coastal 

8 ship BLACKHAWK (MHC–58). 

9 (2) LITHUANIA.—To the Government of Lith10 uania, the OSPREY class minehunter coastal ships 

11 CORMORANT (MHC–57) and KINGFISHER 

12 (MHC–56). 

13 (b) TRANSFERS BY SALE.—The President is author14 ized to transfer vessels to foreign recipients on a sale basis 

15 under section 21 of the Arms Export Control Act (22 

16 U.S.C. 2761), as follows: 

17 (1) TAIWAN.—To the Taipei Economic and 

18 Cultural Representative Office in the United States 

19 (which is the Taiwan instrumentality designated 

20 pursuant to section 10(a) of the Taiwan Relations 

21 Act (22 U.S.C. 3309(a))), the OSPREY class 

22 minehunter coastal ships ORIOLE (MHC–55) and 

23 FALCON (MHC–59). 
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1 (2) TURKEY.—To the Government of Turkey, 

2 the OSPREY class minehunter coastal ship 

3 SHRIKE (MHC–62). 

4 (c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF

5 TRANSFERRED EXCESS DEFENSE ARTICLES.—The value 

6 of a vessel transferred to a recipient on a grant basis pur7 suant to authority provided by subsection (a) shall not be 

8 counted against the aggregate value of excess defense arti9 cles transferred in any fiscal year under section 516(g) 

10 of the Foreign Assistance Act of 1961. 

11 (d) COSTS OF TRANSFERS.—Any expense incurred by 

12 the United States in connection with a transfer authorized 

13 by this section shall be charged to the recipient. 

14 (e) REPAIR AND REFURBISHMENT IN UNITED

15 STATES SHIPYARDS.—To the maximum extent prac16 ticable, the President shall require, as a condition of the 

17 transfer of a vessel under this section, that the recipient 

18 to which the vessel is transferred have such repair or re19 furbishment of the vessel as is needed before the vessel 

20 joins the naval forces of the recipient performed at a ship21 yard located in the United States, including a United 

22 States Navy shipyard. 

23 (f) EXPIRATION OF AUTHORITY.—The authority to 

24 transfer a vessel under this section shall expire at the end 
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1 of the 2-year period beginning on the date of the enact2 ment of this Act. 

Passed the House of Representatives November 13, 

2007. 

Attest: 

Clerk. 

110TH CONGRESS 

1ST SESSION H. R. 2705 

AN ACT 

To amend the Compact of Free Association 

Amendments Act of 2003, and for other purposes.