I

106TH CONGRESS

1ST SESSION H. R. 730

To provide certain requirements for labeling textile fiber products and for

duty-free and quota-free treatment of products of, and to implement

minimum wage and immigration requirements in, the Northern Mariana

Islands, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 1999

Mr. GEORGE MILLER of California (for himself, Mr. SPRATT, Mr. RAHALL,

Mr. VENTO, Mr. DEFAZIO, Mr. ABERCROMBIE, Mr. PALLONE, Mrs.

CHRISTIAN-CHRISTENSEN, Mr. KIND, Mr. INSLEE, Mr. UDALL of Colorado, Mr. CROWLEY, Mr. BARRETT of Wisconsin, Ms. KAPTUR, Ms.

DELAURO, Mr. HINCHEY, Mr. FRANK of Massachusetts, Mr. STARK, Mr.

MCDERMOTT, Mr. MCGOVERN, Mr. KUCINICH, Mr. OLVER, Mr. SANDERS, Mr. BROWN of Ohio, Mr. ACKERMAN, Mrs. MALONEY of New York,

Mr. RUSH, Mr. WAXMAN, Mr. DELAHUNT, Mr. TIERNEY, Ms. PELOSI,

Mr. MATSUI, Mr. CLAY, Mr. GREEN of Texas, Mr. KLECZKA, Mr. DINGELL, Mr. BRADY of Pennsylvania, Mr. LEWIS of Georgia, Mr. HASTINGS

of Florida, Ms. SLAUGHTER, Mr. LANTOS, Mr. EVANS, Ms. WOOLSEY,

Mrs. MINK of Hawaii, Mr. TRAFICANT, Mr. GEJDENSON, Mrs. CLAYTON,

Ms. LEE, and Ms. MILLENDER-MCDONALD) introduced the following bill;

which was referred to the Committee on Resources, and in addition to

the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jurisdiction of the committee concerned

A BILL

To provide certain requirements for labeling textile fiber

products and for duty-free and quota-free treatment of

products of, and to implement minimum wage and immigration requirements in, the Northern Mariana Islands,

and for other purposes.
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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 ‘‘United States-Com5 monwealth of the Northern Marianas Human Dignity

6 Act’’.

7 SEC. 2. FINDINGS.

8 The Congress finds that—

9 (1) between 1955 and 1975, the people of the

10 Northern Mariana Islands, through their duly elect11 ed representatives, expressed on numerous occasions

12 formally and informally to the United States and to

13 the United Nations their strong desire to become a

14 part of the United States;

15 (2) in 1975 the legislature of the Northern

16 Mariana Islands unanimously endorsed the Covenant

17 to Establish a Commonwealth of the Northern Mari18 ana Islands in Political Union with the United

19 States of America, and the Covenant was put before

20 the voters of the Northern Mariana Islands on June

21 17, 1975, with 95 percent of eligible voters casting

22 ballots and 78.8 percent voting to approve the Cov23 enant;

24 (3) to allay any concerns of the Commonwealth

25 of the Northern Mariana Islands that United States
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1 immigration laws would allow mass immigration into

2 the small island communities, article V of the Cov3 enant which established a Commonwealth of the

4 Northern Mariana Islands provided the Common5 wealth of the Northern Mariana Islands with a par6 tial exemption from the Immigration and Nationality

7 Act until the United Nations trusteeship over the Is8 lands ended in 1986;

9 (4) the Commonwealth of the Northern Mari10 ana Islands then instituted a largely unrestricted im11 migration policy, resulting in a population explosion

12 of over 250 percent in 15 years, so that in 1999,

13 60,000 people live in the Northern Mariana Islands,

14 including over 33,000 foreign contract workers and

15 only 27,000 United States residents;

16 (5) the Commonwealth of the Northern Mari17 ana Islands has used its immigration policy to re18 cruit a large, low-cost foreign workforce of des19 perately poor individuals with virtually no voice to

20 demand safe living and working conditions or better

21 wage and benefit options;

22 (6) 91 percent of all private sector jobs in the

23 Northern Mariana Islands are held by temporary

24 contract workers while 56 percent of all locally born
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1 United States citizens work for the local govern2 ment;

3 (7) the recruitment of this large, low-cost for4 eign workforce has led to a consistent unemployment

5 rate of 14.2 percent among United States citizens in

6 the Northern Mariana Islands compared to 5.6 per7 cent in the United States as a whole;

8 (8) 35 percent of locally born United States

9 citizens live below the poverty rate, despite this high

10 poverty rate every 2.6 local households employ at

11 least 1 foreign contracted live-in maid;

12 (9) over $1,000,000,000 worth of garments

13 made by alien contract workers using mostly foreign14 made fabric entered the United States in 1998,

15 quota- and duty-free, at a cost to the United States

16 treasury of $200,000,000;

17 (10) on February 4, 1999, the Senate of the

18 Commonwealth of the Northern Mariana Islands

19 passed legislation to allow up to an additional 2,400

20 contract workers to be brought into the Northern

21 Mariana Islands;

22 (11) article V of section 503 of the Covenant

23 which established a Commonwealth of the Northern

24 Mariana Islands provided the Commonwealth of the

25 Northern Mariana Islands with a temporary exemp-
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1 tion from the minimum wage provisions of the Fair

2 Labor Standards Act of 1938 in order to assist the

3 growth of the Islands’ economy;

4 (12) the economy of the Northern Mariana Is5 lands has grown significantly and, in 1998, the gar6 ment industry alone sent over $1,000,000,000 worth

7 of garments to the United States mainland; yet the

8 current minimum wage in the Northern Mariana Is9 lands is as low as $3.05 per hour;

10 (13) the legislature of the Commonwealth of the

11 Northern Mariana Islands reversed a law that would

12 have provided for small, incremental increases in the

13 minimum wage in the Northern Mariana Islands

14 until that wage reached the federally mandated

15 wage;

16 (14) all workers on United States soil should be

17 paid a living wage;

18 (15) garments made in the Northern Mariana

19 Islands may carry a ‘‘Made in USA’’ label, deceiving

20 consumers as to the conditions under which the gar21 ments have been made and competing directly with

22 garments made on the United States mainland by

23 workers paid a living wage, working in a safe envi24 ronment;
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1 (16) ‘‘sweatshop’’ conditions exist in the North2 ern Mariana Islands, where employers—

3 (A) provide unsafe and unhealthy working

4 and living environments;

5 (B) use bonded and indentured foreign la6 borers;

7 (C) do not pay wages required under the

8 Fair Labor Standards Act; and

9 (D) refuse to recognize the legal rights of

10 workers to form labor unions without fear of re11 taliation;

12 (17) the Government of the Commonwealth of

13 the Northern Mariana Islands has repeatedly re14 fused to raise the wage and living standards for

15 workers, or to aggressively prosecute labor and

16 human rights abuses; and

17 (18) United States Customs agents and Cus18 toms agents of the Commonwealth of the Northern

19 Mariana Islands are not permitted under current

20 law to open and inspect cargo containers entering

21 the Northern Mariana Islands without the owner of

22 the container present.

23 SEC. 3. AMENDMENTS.

24 The Joint Resolution entitled ‘‘Joint Resolution to

25 approve the ‘Covenant To Establish a Commonwealth of
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1 the Northern Mariana Islands in Political Union with the

2 United States of America’, and for other purposes’’ ap3 proved March 24, 1976 (48 U.S.C. 1801 et seq.), is

4 amended—

5 (1) by adding at the end the following new sec6 tions:

7 ‘‘SEC. 7. LABELING OF TEXTILE FIBER PRODUCTS.

8 ‘‘(a) IN GENERAL.—No textile fiber product shall

9 have a stamp, tag, label, or other means of identification

10 or substitute therefor on or affixed to the product stating

11 ‘Made in USA’ or otherwise stating or implying that the

12 product was made or assembled in the United States

13 unless—

14 ‘‘(1) each individual providing direct labor in

15 production of such textile fiber product was paid a

16 wage equal to or greater than the wage set by sec17 tion 8;

18 ‘‘(2) the product was produced or manufactured

19 in compliance with all Federal laws relating to labor

20 rights and working conditions, including, but not

21 limited to, the National Labor Relations Act, the

22 Occupational Safety and Health Act of 1970, and

23 the Fair Labor Standards Act of 1938;

24 ‘‘(3) the factory or other business concern pro25 ducing or manufacturing the product, as certified by
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1 the Secretary of Labor, has full-time employees in

2 nonmanagerial positions who are citizens or nation3 als of the United States, aliens lawfully admitted

4 into the United States for permanent residence, citi5 zens of Palau, the Republic of the Marshall Islands,

6 or the Federated States of Micronesia, aliens admit7 ted into the United States as refugees under section

8 207 of the Immigration and Nationality Act (8

9 U.S.C. 1157), or aliens granted asylum in the

10 United States under section 208 of that Act (8

11 U.S.C. 1158), in the following percentages: 25 per12 cent within 6 months after the date of the enact13 ment of this section, 50 percent within 1 year after

14 such date of enactment, and 75 percent within 18

15 months after such date of enactment; and

16 ‘‘(4) the factory or other business concern pro17 ducing or manufacturing the product does not em18 ploy individuals under conditions of indentured ser19 vitude.

20 ‘‘(b) RESULT OF NONCOMPLIANCE.—A textile fiber

21 product which is stamped, tagged, labeled, or otherwise

22 identified in violation of subsection (a) shall be deemed

23 to be misbranded for purposes of the Textile Fiber Prod24 ucts Identification Act (15 U.S.C. 70 et seq.).
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1 ‘‘(c) DEFINITION.—For purposes of this section, the

2 term ‘direct labor’ includes any work provided to prepare,

3 assemble, process, package, or transport a textile fiber

4 product, but does not include supervisory, management,

5 security, or administrative work.

6 ‘‘SEC. 8. MINIMUM WAGE.

7 ‘‘Section 503(c) of the foregoing Covenant shall be

8 construed and applied as if it read as follows:

9 ‘‘ ‘(c) The minimum wage provisions of the Fair

10 Labor Standards Act of 1938 (29 U.S.C. 201 et seq.),

11 shall apply to the Commonwealth of the Northern Mariana

12 Islands, except that—

13 ‘‘ ‘(1) through December 31, 1999, the mini14 mum wage applicable to the Commonwealth of the

15 Northern Mariana Islands shall be $3.55 per hour;

16 ‘‘ ‘(2) on January 1, 2000, and on July 1 and

17 January 1 of each year thereafter, the minimum

18 wage applicable to the Commonwealth of the North19 ern Mariana Islands shall be $0.50 per hour more

20 than the minimum wage that was applicable to the

21 Commonwealth of the Northern Mariana Islands for

22 the preceding 6-month period until the minimum

23 wage applicable to the Commonwealth of the North24 ern Mariana Islands is equal to the minimum wage
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1 rate set forth in section 6(a)(1) of the Fair Labor

2 Standards Act of 1938; and

3 ‘‘ ‘(3) after the minimum wage applicable to the

4 Commonwealth of the Northern Mariana Islands is

5 equal to the minimum wage rate set forth in section

6 6(a)(1) of the Fair Labor Standards Act of 1938,

7 pursuant to paragraph (2), the minimum wage ap8 plicable to the Commonwealth of the Northern Mari9 ana Islands shall increase as necessary to remain

10 equal to the minimum wage rate set forth in section

11 6(a)(1) of the Fair Labor Standards Act of 1938.’

12 ‘‘SEC. 9. CONDITIONS FOR DUTY-FREE AND QUOTA-FREE

13 TREATMENT.

14 ‘‘(a) CONDITIONS.—No product of the Northern Mar15 iana Islands may enter the customs territory of the United

16 States duty-free or not subject to quota as the product

17 of an insular possession, unless—

18 ‘‘(1) each individual providing direct labor in

19 production of the product was paid a wage equal to

20 or greater than the wage set by section 8;

21 ‘‘(2) the product was produced or manufactured

22 in compliance with all Federal laws relating to labor

23 rights and working conditions, including, but not

24 limited to, the National Labor Relations Act, the
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1 Occupational Safety and Health Act of 1970, and

2 the Fair Labor Standards Act of 1938;

3 ‘‘(3) the factory or other business concern pro4 ducing or manufacturing the product, as certified by

5 the Secretary of Labor, has full-time employees in

6 nonmanagerial positions who are citizens or nation7 als of the United States, aliens lawfully admitted

8 into the United States for permanent residence, citi9 zens of Palau, the Republic of the Marshall Islands,

10 or the Federated States of Micronesia, persons ad11 mitted into the United States under section 207 of

12 the Immigration and Nationality Act (8 U.S.C.

13 1157), or aliens granted asylum in the United States

14 under section 208 of that Act (8 U.S.C. 1158), in

15 the following percentages: 25 percent within 6

16 months after the date of the enactment of this sec17 tion, 50 percent within 1 year after such date of en18 actment, and 75 percent within 18 months after

19 such date of enactment;

20 ‘‘(4) the factory or other business concern pro21 ducing or manufacturing the product does not em22 ploy individuals under conditions of indentured ser23 vitude; and
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1 ‘‘(5) the Commissioner of Customs has certified

2 that the Commonwealth of the Northern Mariana Is3 lands is taking adequate measures—

4 ‘‘(A) to prevent unlawful transshipment of

5 goods that is carried out by rerouting, false

6 declaration concerning country or place of ori7 gin, falsification of documents, evasion of

8 United States rules of origin, or any other

9 means; and

10 ‘‘(B) to prevent being used as a transit

11 point for the shipment of goods in violation of

12 the Agreement on Textiles and Clothing re13 ferred to in section 101(d)(4) of the Uruguay

14 Round Agreements Act or any other applicable

15 trade agreement.

16 ‘‘(b) PENALTIES AGAINST EXPORTERS.—If the

17 President determines, based on sufficient evidence, that

18 an exporter has willfully falsified information regarding

19 the country of origin, manufacture, processing, or assem20 bly of a product of the Northern Mariana Islands for

21 which duty-free or quota-free treatment is claimed, then

22 the President shall deny to such exporter, and any succes23 sors of such exporter, for a period of 2 years, duty-free

24 and quota-free treatment for such product.
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1 ‘‘(c) DEFINITION.—For purposes of this section, the

2 term ‘direct labor’ includes any work provided to prepare,

3 assemble, process, package, or transport a product, but

4 does not include supervisory, management, security, or ad5 ministrative work.’’; and

6 (2) by adding after the new sections added by

7 paragraph (1), the following new section:

8 ‘‘SEC. 10. APPLICABILITY OF IMMIGRATION LAWS.

9 ‘‘Section 506 of the foregoing Covenant shall be con10 strued and applied as if it included at the end the follow11 ing subsection:

12 ‘‘ ‘(e)(1) Subject to paragraphs (2) and (3), the provi13 sions of the Immigration and Nationality Act shall apply

14 to the Northern Mariana Islands as if the Northern Mari15 ana Islands were a State (as defined in section 101(a)(36)

16 of such Act), and a part of the United States (as defined

17 in section 101(a)(38) of such Act). Such Act shall super18 sede and replace all laws, provisions, or programs of the

19 Commonwealth of the Northern Mariana Islands relating

20 to the admission and removal of aliens from the Northern

21 Mariana Islands.

22 ‘‘ ‘(2)(A) Notwithstanding paragraph (1) and subject

23 to subparagraph (C), if the Secretary of Labor, upon re24 ceipt of a joint recommendation of the Governor and Leg25 islature of the Commonwealth of the Northern Mariana
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1 Islands, finds that exceptional circumstances exist with re2 spect to the inability of employers in the Northern Mari3 ana Islands to obtain sufficient work-authorized labor, the

4 Attorney General may establish a specific number of em5 ployment-based immigrant visas to be made available dur6 ing the following fiscal year under this paragraph and sec7 tion 203(b) of the Immigration and Nationality Act.

8 ‘‘ ‘(B) Upon notification by the Attorney General that

9 a number has been established pursuant to subparagraph

10 (A), the Secretary of State may allocate up to that number

11 of visas without regard to the numerical limitations set

12 forth in sections 202 and 203(b)(3)(B) of the Immigration

13 and Nationality Act. Visa numbers allocated under this

14 subparagraph shall be allocated first from the number of

15 visas available under section 203(b)(3) of the Immigration

16 and Nationality Act, or, if such visa numbers are not avail17 able, from the number of visas available under section

18 203(b)(5) of such Act.

19 ‘‘ ‘(C) The authority of the Attorney General and the

20 Secretary of State under subparagraphs (A) and (B) shall

21 expire at the end of the 4th fiscal year following the first

22 fiscal year for which the Attorney General establishes a

23 number pursuant to subparagraph (A).

24 ‘‘ ‘(D) Persons granted employment-based immigrant

25 visas under this paragraph may be admitted initially at
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1 a port-of-entry in the Northern Mariana Islands, or at a

2 port-of-entry in Guam, for the purpose of immigrating to

3 the Northern Mariana Islands, as lawful permanent resi4 dents of the United States.

5 ‘‘ ‘(E) Any immigrant visa issued pursuant to this

6 paragraph shall be valid only for application for initial ad7 mission to the Northern Mariana Islands. The admission

8 of any alien pursuant to such an immigrant visa shall be

9 an admission for lawful permanent residence and employ10 ment only in the Northern Mariana Islands during the

11 first 3 years after such admission. Such admission shall

12 not authorize permanent residence or employment in any

13 other part of the United States during such 3-year period.

14 An alien admitted for permanent residence pursuant to

15 this paragraph shall be issued appropriate documentation

16 identifying the person as having been admitted pursuant

17 to the terms and conditions of this paragraph, and shall

18 be required to comply with a system for the registration

19 and reporting of aliens admitted for permanent residence

20 under this subsection, to be established by the Attorney

21 General under chapter 7 of title II of the Immigration and

22 Nationality Act.

23 ‘‘ ‘(F) Nothing in this paragraph shall preclude an

24 alien who has obtained lawful permanent resident status

25 pursuant to this paragraph from applying, if otherwise eli-
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1 gible under this section and under the Immigration and

2 Nationality Act, for an immigrant visa or admission as

3 a lawful permanent resident under the Immigration and

4 Nationality Act.

5 ‘‘ ‘(G) Any alien admitted under this paragraph, who

6 violates the provisions of this paragraph, or who is found

7 removable or inadmissible under section 237(a) of the Im8 migration and Nationality Act, or paragraphs (1), (2), (3),

9 (4)(A), (4)(B), (6), (7), (8), or (9) of section 212(a) of

10 such Act, shall be removed pursuant to chapter 4 of title

11 II of such Act.

12 ‘‘ ‘(H) The Attorney General may establish by regula13 tion a procedure by which an alien who has obtained law14 ful permanent resident status pursuant to this paragraph

15 may apply for a waiver of the limitations on the terms

16 and conditions of such status. The Attorney General may

17 grant the application for waiver, in the discretion of the

18 Attorney General, if: (1) the alien is not in removal pro19 ceedings, (2) the alien has been a person of good moral

20 character for the preceding 5 years, (3) the alien has not

21 violated the terms and conditions of the alien’s permanent

22 resident status, and (4) the alien would suffer exceptional

23 and extremely unusual hardship were such terms and con24 ditions not waived.
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1 ‘‘ ‘(I) The limitations on the terms and conditions of

2 an alien’s permanent residence set forth in this paragraph

3 shall expire at the end of 3 years after the alien’s admis4 sion to the Northern Mariana Islands as a permanent resi5 dent and the alien is thereafter fully subject to the provi6 sions of the Immigration and Nationality Act. Following

7 the expiration of such limitations, the permanent resident

8 alien may engage in any lawful activity, including employ9 ment, anywhere in the United States.

10 ‘‘ ‘(3)(A) Except as provided in subparagraph (B),

11 paragraphs (1) and (2) shall take effect after the expira12 tion of the 3-month period beginning on the date of the

13 enactment of the United States-Commonwealth of the

14 Northern Marianas Human Dignity Act.

15 ‘‘ ‘(B) With respect to an alien who, as of the last

16 day of the 3-month period beginning on the date of the

17 enactment of the United States-Commonwealth of the

18 Northern Marianas Human Dignity Act, is authorized by

19 the Government of the Northern Mariana Islands (pursu20 ant to the immigration laws of the Commonwealth of the

21 Northern Mariana Islands) to enter into and remain tem22 porarily in the Northern Mariana Islands in order to per23 form temporary service or labor in the Northern Mariana

24 Islands (and any relatives of the alien if, authorized to

25 accompany or follow to join the alien), paragraphs (1) and
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1 (2) shall apply to the alien beginning after the earlier of

2 the following dates:

3 ‘‘ ‘(i) The date on which such authorization ex4 pires (such authorization not being subject to exten5 sion or renewal by the Government of the Northern

6 Mariana Islands after the expiration of the 3-month

7 period beginning on the date of the enactment of the

8 United States-Commonwealth of the Northern Mari9 anas Human Dignity Act).

10 ‘‘ ‘(ii) The date that is 2 years after the date of

11 the enactment of the United States-Commonwealth

12 of the Northern Marianas Human Dignity Act.

13 ‘‘ ‘(4) When deploying personnel to enforce the provi14 sions of this section, the Attorney General shall coordinate

15 with, and act in conjunction with, State and local law en16 forcement agencies to ensure that such deployment does

17 not degrade or compromise the law enforcement capabili18 ties and functions currently performed by immigration of19 ficers.’.’’.

20 SEC. 4. AUTHORITY OF CUSTOMS SERVICE TO BOARD

21 SHIPS.

22 Section 467 of the Tariff Act of 1930 (19 U.S.C.

23 1467) is amended by striking ‘‘or the Virgin Islands,’’

24 each place it appears and inserting ‘‘, the Virgin Islands,

25 or the Commonwealth of the Northern Mariana Islands,’’.
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1 SEC. 5. STUDY; REPORT.

2 (a) STUDY.—A study shall be conducted of the extent

3 of human rights violations and labor rights violations in

4 the Northern Mariana Islands, including the use of forced

5 or indentured labor, and any efforts being taken by the

6 Government of the United States or the Government of

7 the Northern Mariana Islands to address or prohibit such

8 violations.

9 (b) REPORT.—Not later than 1 year after the date

10 of the enactment of this Act, the Secretary of the Interior

11 shall transmit to the Committee on Resources of the

12 House of Representatives and the Committee on Energy

13 and Natural Resources of the Senate a report on the re14 sults of the study required by subsection (a).

15 (c) CONSULTATION.—Appropriate local government

16 officials, law enforcement agencies, and nongovernmental

17 organizations active in instituting and protecting human

18 and labor rights may be consulted when conducting the

19 study and preparing the report required by this section.

20 SEC. 6. EFFECT ON OTHER LAW.

21 The provisions of the amendments made by para22 graph (1) of section 3 shall be in addition to, but shall

23 not otherwise modify, the requirements of the Textile

24 Fiber Products Identification Act (15 U.S.C. 70 et seq.).
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1 SEC. 7. EFFECTIVE DATES.

2 (a) IN GENERAL.—Except as provided in subsection

3 (b), the amendments made by this Act shall take effect

4 30 days after the date of the enactment of this Act.

5 (b) IMMIGRATION.—

6 (1) IN GENERAL.—The amendment made by

7 paragraph (2) of section 3 shall take effect after the

8 expiration of the 3-month period beginning on the

9 date of the enactment of this Act.

10 (2) EXCEPTION.—With respect to an alien who,

11 as of the last day of the 3-month period beginning

12 on the date of the enactment of this Act, is author13 ized by the Government of the Northern Mariana Is14 lands (pursuant to the immigration laws of the Com15 monwealth of the Northern Mariana Islands) to

16 enter into and remain temporarily in the Northern

17 Mariana Islands in order to perform temporary serv18 ice or labor in the Northern Mariana Islands (and

19 any relatives of the alien if, authorized to accompany

20 or follow to join the alien), such amendment shall

21 apply to the alien beginning after the earlier of the

22 following dates:

23 (A) The date on which such authorization

24 expires (such authorization not being subject to

25 extension or renewal by the Government of the

26 Northern Mariana Islands after the expiration
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1 of the 3-month period beginning on the date of

2 the enactment of this Act).

3 (B) The date that is 2 years after the date

4 of the enactment of this Act.

5 SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

6 There are authorized to be appropriated such sums

7 as may be necessary to carry out the provisions of this

8 Act.

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