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[House Report 109-437]
[From the U.S. Government Publishing Office]

109th Congress                                            Rept. 109-437
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

======================================================================
 
               GUAM WORLD WAR II LOYALTY RECOGNITION ACT

                                _______
                                

                 April 25, 2006.--Ordered to be printed

                                _______
                                

  Mr. Pombo, from the Committee on Resources, submitted the following

                              R E P O R T

                        [To accompany H.R. 1595]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Resources, to whom was referred the bill 
(H.R. 1595) to implement the recommendations of the Guam War 
Claims Review Commission, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Guam World War II 
Loyalty Recognition Act''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Recognition of the suffering and loyalty of the residents of 
Guam.
Sec. 3. Payments for Guam World War II claims.
Sec. 4. Adjudication.
Sec. 5. Grants program to memorialize the occupation of Guam during 
World War II.

SEC. 2. RECOGNITION OF THE SUFFERING AND LOYALTY OF THE RESIDENTS OF 
                    GUAM.

  (a) Recognition of the Suffering of the Residents of Guam.--The 
United States recognizes that, as described by the Guam War Claims 
Review Commission, the residents of Guam, on account of their United 
States nationality, suffered unspeakable harm as a result of the 
occupation of Guam by Imperial Japanese military forces during World 
War II, by being subjected to death, rape, severe personal injury, 
personal injury, forced labor, forced march, or internment.
  (b) Recognition of the Loyalty of the Residents of Guam.--The United 
States forever will be grateful to the residents of Guam for their 
steadfast loyalty to the United States of America, as demonstrated by 
the countless acts of courage they performed despite the threat of 
death or great bodily harm they faced at the hands of the Imperial 
Japanese military forces that occupied Guam during World War II.

SEC. 3. PAYMENTS FOR GUAM WORLD WAR II CLAIMS.

  (a) Payments for Death, Personal Injury, Forced Labor, Forced March, 
and Internment.--After receipt of certification pursuant to section 
4(b)(8) and in accordance with this section, the Secretary of the 
Treasury shall make the following payments:
          (1) Survivors of residents who died in war.--In the case of a 
        compensable Guam decedent (as defined in subsection (c)(1)), 
        the Secretary shall pay $25,000 for distribution to eligible 
        survivors of the decedent as specified in subsection (b).
          (2) Residents injured.--In the case of a compensable Guam 
        victim who is not deceased, the Secretary shall pay such victim 
        the following:
                  (A) If the victim has suffered an injury described in 
                subsection (c)(2)(A), $15,000.
                  (B) If the victim is not described in subparagraph 
                (A) but has suffered an injury described in subsection 
                (c)(2)(B), $12,000.
                  (C) If the victim is not described in subparagraph 
                (A) or (B) but has suffered an injury described in 
                subsection (c)(2)(C), $10,000.
          (3) Survivors of deceased injured residents.--In the case of 
        a compensable Guam victim who is deceased, the Secretary shall 
        pay $7,000 for distribution to eligible survivors of the victim 
        as specified in subsection (b).
Payments under this section shall be treated for purposes of section 
1304(a) of title 31, United States Code, as an award otherwise 
authorized as law.
  (b) Distribution of Survivor Payments.--Payments under paragraph (1) 
or (3) of subsection (a) to eligible survivors of an individual who is 
a compensable Guam decedent or a compensable Guam victim who is 
deceased shall be made as follows:
          (1) If there is living a spouse of the individual, but no 
        child of the individual, all of the payment shall be made to 
        such spouse.
          (2) If there is living a spouse of the individual and one or 
        more children of the individual, one-half of the payment shall 
        be made to the spouse and the other half to the child (or to 
        the children in equal shares).
          (3) If there is no living spouse of the individual, but there 
        are one or more children of the individual alive, all of the 
        payment shall be made to such child (or to such children in 
        equal shares).
          (4) If there is no living spouse or child of the individual 
        but there is a living parent (or parents) of the individual, 
        all of the payment shall be made to the parents (or to the 
        parents in equal shares).
          (5) If there is no such living spouse, child, or parent, no 
        payment shall be made.
  (c) Definitions.--For purposes of this Act:
          (1) Compensable guam decedent.--The term ``compensable Guam 
        decedent'' means an individual determined under section 4(a)(1) 
        to have been a resident of Guam who died or was killed as a 
        result of the attack and occupation of Guam by Imperial 
        Japanese military forces during World War II, or incident to 
        the liberation of Guam by United States military forces, and 
        whose death would have been compensable under the Guam 
        Meritorious Claims Act of 1945 (Public Law 79-224) if a timely 
        claim had been filed under the terms of such Act.
          (2) Compensable guam victim.--The term ``compensable Guam 
        victim'' means an individual determined under section 4(a)(1) 
        to have suffered, as a result of the attack and occupation of 
        Guam by Imperial Japanese military forces during World War II, 
        or incident to the liberation of Guam by United States military 
        forces, any of the following:
                  (A) Rape or severe personal injury (such as loss of a 
                limb, dismemberment, or paralysis).
                  (B) Forced labor or a personal injury not under 
                subparagraph (A) (such as disfigurement, scarring, or 
                burns).
                  (C) Forced march, internment, or hiding to evade 
                internment.
          (3) Definitions of severe personal injuries and personal 
        injuries.--The Foreign Claims Settlement Commission shall 
        promulgate regulations to specify injuries that constitute a 
        severe personal injury or a personal injury for purposes of 
        subparagraphs (A) and (B), respectively, of paragraph (2).

SEC. 4. ADJUDICATION.

  (a) Authority of Foreign Claims Settlement Commission.--
          (1) In general.--The Foreign Claims Settlement Commission is 
        authorized to adjudicate claims and determine eligibility for 
        payments under section 3.
          (2) Rules and regulations.--The chairman of the Foreign 
        Claims Settlement Commission shall prescribe such rules and 
        regulations as may be necessary to enable it to carry out its 
        functions under this Act. Such rules and regulations shall be 
        published in the Federal Register.
  (b) Claims Submitted for Payments.--
          (1) Submittal of claim.--For purposes of subsection (a)(1) 
        and subject to paragraph (2), the Foreign Claims Settlement 
        Commission may not determine an individual is eligible for a 
        payment under section 3 unless the individual submits to the 
        Commission a claim in such manner and form and containing such 
        information as the Commission specifies.
          (2) Filing period for claims and notice.--All claims for a 
        payment under section 3 shall be filed within one year after 
        the Foreign Claims Settlement Commission publishes public 
        notice of the filing period in the Federal Register. In 
        addition, the Commission shall cause to be publicized the 
        public notice of the deadline for filing claims in newspaper, 
        radio, and television media on Guam.
          (3) Adjudicatory decisions.--The decision of the Foreign 
        Claims Settlement Commission on each claim shall be by majority 
        vote, shall be in writing, and shall state the reasons for the 
        approval or denial of the claim. If approved, the decision 
        shall also state the amount of the payment awarded and the 
        distribution, if any, to be made of the payment.
          (4) Deductions in payment.--The Foreign Claims Settlement 
        Commission shall deduct, from potential payments, amounts 
        previously paid under the Guam Meritorious Claims Act of 1945 
        (Public Law 79-224).
          (5) Interest.--No interest shall be paid on payments awarded 
        by the Foreign Claims Settlement Commission.
          (6) Remuneration prohibited.--No remuneration on account of 
        representational services rendered on behalf of any claimant in 
        connection with any claim filed with the Foreign Claims 
        Settlement Commission under this Act shall exceed one percent 
        of the total amount paid pursuant to any payment certified 
        under the provisions of this Act on account of such claim. Any 
        agreement to the contrary shall be unlawful and void. Whoever 
        demands or receives, on account of services so rendered, any 
        remuneration in excess of the maximum permitted by this section 
        shall be fined not more than $5,000 or imprisoned not more than 
        12 months, or both.
          (7) Appeals and finality.--Objections and appeals of 
        decisions of the Foreign Claims Settlement Commission shall be 
        to the Commission, and upon rehearing, the decision in each 
        claim shall be final, and not subject to further review by any 
        court or agency.
          (8) Certifications for payment.--After a decision approving a 
        claim becomes final, the chairman of the Foreign Claims 
        Settlement Commission shall certify it to the Secretary of the 
        Treasury for authorization of a payment under section 3.
          (9) Treatment of affidavits.--For purposes of section 3 and 
        subject to paragraph (2), the Foreign Claims Settlement 
        Commission shall treat a claim that is accompanied by an 
        affidavit of an individual that attests to all of the material 
        facts required for establishing eligibility of such individual 
        for payment under such section as establishing a prima facie 
        case of the individual's eligibility for such payment without 
        the need for further documentation, except as the Commission 
        may otherwise require. Such material facts shall include, with 
        respect to a claim under paragraph (2) or (3) of section 3(a), 
        a detailed description of the injury or other circumstance 
        supporting the claim involved, including the level of payment 
        sought.
          (10) Release of related claims.--Acceptance of payment under 
        section 3 by an individual for a claim related to a compensable 
        Guam decedent or a compensable Guam victim shall be in full 
        satisfaction of all claims related to such decedent or victim, 
        respectively, arising under the Guam Meritorious Claims Act of 
        1945 (Public Law 79-224), the implementing regulations issued 
        by the United States Navy pursuant thereto, or this Act.
          (11) Penalty for false claims.--The provisions of section 
        1001 of title 18 of the United States Code (relating to 
        criminal penalties for false statements) apply to claims 
        submitted under this subsection.

SEC. 5. GRANTS PROGRAM TO MEMORIALIZE THE OCCUPATION OF GUAM DURING 
                    WORLD WAR II.

  (a) Establishment.--Subject to subsection (c) and in accordance with 
this section, the Secretary of the Interior shall establish a grants 
program under which the Secretary shall award grants for research, 
educational, and media activities that memorialize the events 
surrounding the occupation of Guam during World War II, honor the 
loyalty of the people of Guam during such occupation, or both, for 
purposes of appropriately illuminating and interpreting the causes and 
circumstances of such occupation and other similar occupations during a 
war.
  (b) Eligibility.--The Secretary of the Interior may not award to a 
person a grant under subsection (a) unless such person submits an 
application to the Secretary for such grant, in such time, manner, and 
form and containing such information as the Secretary specifies.
  (c) Authorization for Appropriations.--There are authorized to be 
appropriated $5,000,000, to remain available for obligation until 
September 30, 2011, to carry out the grant program under this section. 
In addition, the Secretary of the Interior may use unobligated funds 
made available to the Secretary that may be used for such purpose to 
carry out this section.

                          PURPOSE OF THE BILL

    The purpose of H.R. 1595 is to implement the 
recommendations of the Guam War Claims Review Commission.

                  BACKGROUND AND NEED FOR LEGISLATION

    December 8, 1941, brought with it the invasion and eventual 
occupation of Guam by the Japanese Empire. The 22,000 residents 
of Guam, who were U.S. nationals at the time, suffered personal 
injury, forced labor, forced marches, internment, rape and 
executions. After the U.S. regained administration over Guam, 
efforts to compensate the residents of Guam for their suffering 
began. In 1945, Congress passed the Guam Meritorious Claims Act 
(GMCA), which authorized the Secretary of the Navy to appoint a 
claims commission to adjudicate as well as settle war claims 
not in excess of $5,000. Any claims in excess of this amount 
were to be specifically forwarded to and approved by Congress.
    Public Law 107-333, authored by former Congressman Robert 
Underwood, established the Guam War Claims Review Commission to 
issue a report regarding the extent to which the GMCA fulfilled 
its intended purpose. This was submitted to Congress and the 
Administration in June 2004. The Commission put forth multiple 
recommendations based on the general interpretation that there 
were inconsistencies in the implementation of the GMCA. In 
particular, the Commission was troubled by areas that related 
to other war claims precedent and the historical basis upon 
which decisions were made during the claims process in the 
GMCA. The Resources Committee held a July 21, 2004, oversight 
hearing on the report. At the hearing, it became clear that 
legislation would be necessary to provide any further 
authorization of relief or recognition for the suffering of the 
residents of Guam because the GMCA provided only a specific one 
year time limit for adjudication and settlement of past claims.
    The Commission not only reviewed the GMCA but also utilized 
past legislative efforts with regard to this issue as well as 
the Hopkins Committee Report for interpretation and comparison. 
This report was submitted in 1947 and gave a general overview 
of the progress and status of the governments of both Guam and 
American Samoa. It is also important to note that the 
Commission held multiple public hearings on Guam, at which it 
heard testimony from both survivors of the occupation as well 
as relatives of these individuals. A small portion of this 
testimony was also featured at the hearing conducted by the 
Committee.
    The primary function of H.R. 1595 is to implement the 
recommendations of the Guam War Claims Review Commission.
    After a hearing on H.R. 1595, as introduced, some Members 
of the Committee expressed concerns regarding the costs of the 
legislation, how the claims were handled in the bill, and the 
potential for legal precedent established by the bill. In 
short, Congress would be revisiting claims that had been 
previously formally adjudicated.
    As a result of these concerns, H.R. 1595, as ordered 
reported, focuses on the importance of handling the claims of 
the residents of Guam within the current federal framework, 
while at the same time adhering to the general principles 
espoused by the Guam War Claims Review Commission. Of 
particular note, the legislation will set forth specific 
guidance to the Foreign Claims Settlement Commission on how to 
treat varying levels of awards that are relative to the 
experience of the survivors of the war, as well as their heirs.

                            COMMITTEE ACTION

    H.R. 1595 was introduced on April 13, 2005, by 
Congresswoman Madeleine Bordallo (D-GU). The bill was referred 
to the Committee on Resources. On April 20, 2005, the Full 
Committee held a hearing on the bill. On November 16, 2005, the 
Full Resources Committee met to consider the bill. 
Congresswoman Bordallo offered an amendment in the nature of a 
substitute to streamline the process for the consideration and 
adjudication of claims. It removed the Recognition Commission, 
the Recognition Fund, and the Trust Fund from the bill. 
Further, it delineated the various award amounts for varying 
levels of severity of experience relating to a claim. The 
amendment also created a grant program at the Department of the 
Interior for the remembrance of the Japanese military's 
occupation of Guam. The amendment was adopted by unanimous 
consent. The bill, as amended, was then ordered favorably 
reported to the House of Representatives by unanimous consent.

                      SECTION-BY-SECTION ANALYSIS

Section 1. Short title; table of contents

    Section 1 provides title of the bill and section headings 
of legislation.

Section 2. Recognition of the suffering and loyalty of the residents of 
        Guam

    Section 2 makes two statements recognizing the suffering 
and hardships faced by the people of Guam during Japanese 
occupation while also noting the loyalty of those who endured 
while facing such difficult odds.

Section 3. Payments for Guam World War II claims

    Subsection (a) delineates the amounts that claimants may be 
awarded, including heirs, at levels of $25,000, $15,000, 
$12,000, $10,000, and $7,000. Payments of claims are made from 
the judgment fund at the Department of Treasury.
    Subsection (b) describes the order in which survivors of 
deceased residents from the Japanese occupation are entitled to 
payments. This approach to delineating the payments to 
survivors is based in existing war claims law. Successor claims 
have been allowed under the War Claims Act of 1948, Wake Island 
Amendment of 1962, War Claims Act of 1954, and the Micronesian 
Claims Act of 1971. Under these Acts, potential claimants have 
been limited to parents, a spouse, or children.
    Subsection (c) defines the various levels of payments that 
apply to varying degrees of loss or suffering, which includes 
rape, forced labor, and internment. The concept of including 
``internment'' as a category for awards is based on both the 
War Claims Act of 1948 and the Wake Island Amendment of 1962, 
which authorized compensation for internment of civilians by 
Japanese military forces during World War II.

Section 4. Adjudication

    Subsection (a) specifically sets out the authority of the 
Foreign Claims Settlement Commission at the Department of 
Justice to handle the war claims. The rules and regulations of 
the Settlement Commission relating to its work will be printed 
publicly. The work of the Settlement Commission will be crucial 
to properly notifying potential claimants as well as 
efficiently adjudicating the claims. To this end, the Committee 
recommends the hiring of interpreters on Guam to expeditiously 
and accurately translate the experience of those who speak only 
Guam's local vernacular. The Committee also received 
expressions of interest from Congresswoman Bordallo in having 
the Foreign Claims Settlement Commission actually perform many 
of its functions directly in Guam, including staffing and 
offices.
    The Committee recognizes through its work with the 
Department of the Interior that due to its long-standing 
relationship with Guam's leaders and its understanding of 
Guam's history, the Department may be called upon to provide 
assistance and expertise to the Settlement Commission as it 
carries out its duties under this Act. The Committee expects 
the Department of the Interior to provide such assistance as 
may be requested by the Settlement Commission.
    Subsection (b) describes various items of note relating to 
claims for payment. This includes the filing period, the 
deductions in payment as it relates to Public Law 79-224, the 
appeals process, the certification of payment process, and 
penalties for false claims submitted.
    The Committee is aware that since the end of World War II, 
many survivors of Guam's occupation have relocated. The 
Committee encourages the Foreign Claims Settlement Commission, 
with the support of the Department of the Interior, to 
undertake activities to inform the greatest possible number of 
potential eligible survivors and heirs of the opportunity to 
submit a claim. These activities should include outreach to 
organizations whose primary membership consists of former 
residents of Guam. The Committee notes that such organizations 
exist in the States of California, Washington, Texas, Nevada, 
Hawaii, Arizona, and the greater Washington D.C. area.

Section 5. Grants program to memorialize the occupation of Guam during 
        World War II

    Section 5 establishes a grant program for research, 
educational and media activities that relate to properly 
interpreting the causes and circumstances of the Japanese 
military occupation of Guam. The Secretary of the Interior is 
provided the authority to award the grants, which are 
authorized to be appropriated at $5 million over five years.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enactment of this bill would increase direct spending by 
approximately $180 million over the 2006-2009 time frame.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to implement the recommendations of 
the Guam War Claims Review Commission.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 1595--Guam World War II Loyalty Recognition Act

    Summary: H.R. 1595 would require the Federal Government to 
compensate Guam residents for their treatment during the 
island's occupation by Japanese military forces during World 
War II. The legislation also would authorize the appropriation 
of $5 million for a grant program to memorialize the occupation 
of Guam during World War II.
    CBO estimates that enacting this legislation would increase 
direct spending by about $180 million over the 2006-2009 period 
to make war-claim compensation payments. In addition, we 
estimate that implementing the bill would cost $1 million in 
2006 and $8 million over the 2006-2011 period, assuming 
appropriation of the necessary amounts.
    H.R. 1595 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on state, local, or tribal governments.
    H.R. 1595 contains a private-sector mandate, as defined in 
UMRA, on individuals seeking to represent certain claimants who 
are eligible to receive money from the Foreign Claims 
Settlement Commission. The bill would limit the amount of 
compensation individuals can receive to represent claimants who 
file for claims with the Foreign Claims Settlement Commission 
under this bill. CBO estimates, however, that there would be no 
cost to comply with the mandate.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of H.R. 1595 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2006     2007     2008     2009     2010     2011
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Guam War-Claim Compensation Payments
    Estimated Budget Authority............................       20      100       60        0        0        0
    Estimated Outlays.....................................       16       84       68       12        0        0
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Foreign Claims Settlement Commission
    Estimated Authorization Level.........................        1        1        1        0        0        0
    Estimated Outlays.....................................        1        1        1        0        0        0
Grant Program
    Authorization Level...................................        0        5        0        0        0        0
    Estimated Outlays.....................................        0        1        1        1        1        1
    Total Changes.........................................
      Estimated Authorization Level.......................        1        6        1        0        0        0
      Estimated Outlays...................................        1        2        2        1        1        1
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted before the end of fiscal year 2006, that 
the necessary amounts will be provided each year, and that 
spending will follow historical patterns for similar programs.
    Direct Spending, H.R. 1595 would authorize the Treasury to 
make payments to the residents of Guam for deaths and injuries 
suffered during Japanese occupation of the island in World War 
II. The Foreign Claims Settlement Commission (FCSC), an agency 
within the Department of Justice, would adjudicate such claims. 
Under the bill, claimants would have one year to file with the 
FCSC. H.R. 1595 specifies war-claim compensation payments of 
$25,000 to survivors of those who died during the war, $15,000 
for survivors who were raped or severely injured, $12,000 for 
those who were forced into labor and suffered personal injury, 
and $10,000 for survivors of a forced march or internment. 
Heirs of deceased occupation survivors, including a spouse, 
child, or parent, would be entitled to a payment of $7,000. In 
addition, before making such payments, the FCSC would deduct 
amounts previously paid under the Guam Meritorious Claims Act 
of 1945 (Guam Act). Using information from the Guam War Claims 
Review Commission and the Foreign Claims Settlement Commission, 
CBO estimates that about $10 million was previously paid under 
the Guam Act.
    Guam Population During Occupation. Based on census data 
from 1940, CBO estimates that approximately 22,000 Guamanians 
were living on the island when it was seized and occupied by 
Japanese forces on December 10, 1941. The Guam War Claims 
Review Commission reported that, during the 32-month 
occupation, virtually the entire population was either 
interned, in hiding to avoid capture, or subjected to forced 
march at one time or another while under Japanese occupation 
during World War II. Thus, for this estimate, we assume all 
Guamanians enumerated in the 1940 census would be eligible for 
war-claims compensation payments under H.R. 1595.
    Death Benefit Payments. Using information from the Guam War 
Claims Commission, it is generally accepted that approximately 
1,000 Guamanians died during the war before the island was 
declared secure and liberated by U.S. forces on August 10, 
1944. H.R. 1595 would provide a $25,000 war-claim compensation 
death payment to survivors of those Guamanians who perished 
during the occupation. The number of possible survivors and 
claimants is unknown. Using information from the National 
Center of Health Statistics regarding survival probabilities, 
however, CBO estimates that there are approximately 700 
survivors of the 1,000 Guamanians who died during the Japanese 
occupation. Under that assumption, war-claim compensation death 
payments would cost about $18 million. (If all Guamanians who 
perished during the occupation were to have survivors who 
claimed the $25,000 payment, the costs could reach $25 
million.)
    Other Benefit Payments. In addition, CBO estimates that all 
surviving Guamanians (around 21,000) who were located on the 
island during the occupation would be eligible for payments of 
$10,000 to $15,000 (depending upon the level of injury). Heirs 
of those individuals could receive a payment of $7,000. There 
is no information to determine the number of surviving 
Guamanians from the time of the Japanese occupation, their 
level of injury, or the number of heirs of such individuals. 
Using information from the National Center for Health 
Statistics concerning survival probabilities, CBO estimates 
that there are 7,000 survivors of the occupation and about 
12,000 heirs that would be eligible for payment. Using an 
average payment of $12,500 for survivors and $7,000 for heirs, 
CBO estimates that payments to those survivors and heirs would 
cost about $170 million. (If all Guamanian survivors and heirs 
claimed an average payment of $11,000, the costs could reach 
$231 million.)
    Total Benefit Payments. Using CBO's estimated claim 
payments amounts under H.R. 1595 and accounting for the nominal 
value of the previous war-claim payments of about $10 million, 
CBO estimates that providing additional war-claims compensation 
under H.R. 1595 would cost about $180 million. We expect that 
those payments would be made over the 2006-2009 period because 
of the time required to file, adjudicate, and process claims 
payments.
    Spending subject to appropriation: CBO estimates that 
implementing H.R. 1595 would cost $8 million over the 2006-2011 
period, assuming appropriation of the estimated amounts.
    Foreign Claims Settlement Commission. Section 4 would 
require the FCSC to determine claim eligibility and payment 
amounts. In addition to promulgating rules and regulations, 
FCSC would be required to publicize the program. Based on 
information from FCSC, CBO estimates that additional staffing 
and administrative costs as well as a media campaign in Guam 
would cost $3 million over the 2006-2008 period.
    Grant Program. Section 5 would authorize the appropriation 
of $5 million for the Department of the Interior to establish a 
grant program to support activities in memory of Guam's 
occupation during World War II. Assuming the appropriation of 
the authorized amount, CBO estimates that implementing this 
provision would cost $5 million over the 2006-2011 period.
    Estimated impact on state, local, and tribal government: 
H.R. 1595 contains no intergovernmental mandate as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: H.R. 1595 contains 
a private-sector mandate as defined in UMRA. The bill would 
limit the fees payable to attorneys or other individuals 
seeking to represent claimants who are eligible to receive 
money from the Foreign Claims Settlement Commission under this 
bill. Specifically, section 4(b)6 would limit fees for 
representational services to not more than 1 percent of the 
amount that the claimant is paid. The limitation on 
representational fees is a private-sector mandate as defined in 
UMRA. Because the claimants in this program would be a new 
source of business generated under the bill, representatives 
would not lose fees that they could have collected in the 
absence of the bill. CBO therefore estimates that the cost to 
comply with the mandate would be zero--clearly well below the 
annual threshold established by UMRA ($128 million in 2006, 
adjusted annually for inflation).
    Estimate prepared by: Federal Costs: Matthew Pickford and 
Kathy Ruffing. Impact on State, Local, and Tribal Governments: 
Marjorie Miller. Impact on the Private Sector: Fatimot Ladipo.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    According to the Congressional Budget Office, this bill 
imposes a private sector mandate on individuals seeking to 
represent certain claimants who are eligible to receive money 
from the Foreign Claims Settlement Commission by limiting the 
amount of compensation received for these services. This limit 
is one percent of the amount of the paid claim. However, the 
Congressional Budget Office also estimates that there would no 
cost to comply with this mandate; rather the bill creates new 
business for those who chose to represent claimants under the 
bill and the income from this new business would be a benefit 
to the representatives.
    The Committee adopts the analysis of the costs and benefits 
of this mandate (including the qualitative and quantitative 
analysis) found in the Congressional Budget Office cost 
estimate included in this bill report. Furthermore, given the 
nature of the mandate, the Committee concludes the private 
sector mandate contained in this bill has no effect on health, 
safety, and the protection of the natural environment.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                  
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