```

[Senate Report 107-28]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 63

107th Congress                                                   Report
                                 SENATE
 1st Session                                                     107-28

======================================================================

 
          NORTHERN MARIANA ISLANDS COVENANT IMPLEMENTATION ACT

                                _______
                                

                  June 5, 2001.--Ordered to be printed

                                _______
                                

  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 507]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 507) to implement further the Act (Public 
Law 94-241) approving the Covenant to Establish a Commonwealth 
of the Northern Mariana Islands in Political Union with the 
United States of America, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                         Purpose of the Measure

    S. 507 is identical to S. 1052 as passed by the Senate 
during the 106th Congress. S. 507 amends the legislation 
approving the Covenant for the Commonwealth of the Northern 
Mariana Islands (CNMI) to--
          (1) extend federal immigration law to the CNMI;
          (2) provide a transition period ending December 31, 
        2009 with provisions during that period for issuance of 
        nonimmigrant temporary alien worker visas, imposition 
        of user fees, and applicable authorization for aliens 
        previously admitted under the temporary worker program 
        of the CNMI to remain for the remainder of their 
        contract or two years, whichever is less;
          (3) permit the Attorney General to extend the 
        transition period for legitimate businesses in the 
        tourist industry for not more than two successive five 
        year periods and for one five year period for 
        legitimate businesses in other industries;
          (4) provide a one-time grandfather provision for 
        individuals who have worked in legitimate businesses 
        for the past four years; and
          (5) require the Secretary of Commerce to provide 
        technical and financial assistance to encourage growth 
        and diversification of the local economy and the 
        Secretary of Labor to provide technical and financial 
        assistance to recruit, train, and hire local residents 
        and residents of the freely associated states (persons 
        authorized to work in the United States).

                          Background and Need

                            SUMMARY AND NEED

    The issue of when and how to extend Federal immigration 
laws to the Commonwealth of the Northern Mariana Islands has 
been before the Committee since the early 1970's, when the 
Committee was consulted on the issue during the negotiations 
that led to the Covenant that would make the Northern Marianas 
a territory of the United States. At the time, the Northern 
Marianas was a district of the Trust Territory of the Pacific 
Islands, a United Nations Trusteeship with the United States as 
Administering Authority. Although originally Federal 
immigration laws were to apply immediately upon approval of the 
Covenant, that position changed when the United States decided 
that it would not seek immediate termination of the United 
Nations' Trusteeship for the Trust Territory of the Pacific 
Islands solely for the Northern Mariana Islands. Immigration 
and naturalization are an essential aspect of United States 
sovereignty and immediate extension of those laws upon approval 
of the Covenant would have been inconsistent with the legal 
status of the Marianas, which would remain a part of the United 
Nations Trust Territory of the Pacific Islands until 
termination of the Trusteeship. Given the delay, the Covenant 
provided that federal immigration laws would not apply until 
after the Trusteeship terminated and formal US sovereignty was 
extended over the area.
    In addition, there were concerns over how Federal 
immigration laws would operate and whether changes to federal 
immigration laws might be needed to protect the islands from 
being overrun and to ensure adequate access to workers. At the 
time, a study on immigration was underway, and the Committee 
noted in its report its expectation that ``[i]t may well be 
that these problems will have been solved by the time of the 
termination of the Trusteeship Agreement and that the 
Immigration and Nationality Act containing adequate protective 
provisions can then be introduced to the Northern Marianas 
Islands.'' (S. Rept. 94-433, p. 78) At the time of termination 
of the Trusteeship for the Commonwealth in 1986, however, 
Congress did not take action to extend Federal immigration 
laws. A result of that inaction was the development of an 
economy based in large part on imported labor using short-term 
contracts. Over the years increasing reports of worker abuse 
and other problems led Congress in 1994 to earmark funds for 
enhanced Federal agency presence, specifically from the 
Departments of Justice, Labor, and Treasury, in the 
Commonwealth.
    While there has been a genuine commitment by the present 
Governor to deal with worker abuse problems of the past and the 
problems associated with the limited local resources and 
capabilities in running a full scale immigration system, the 
economy of the Commonwealth remains dominated by an alien 
workforce who cannot participate in the community while 
unemployment among United States citizen residents remains 
about 15%. Furthermore, the record demonstrates that even with 
good faith and an honest commitment, there are substantive and 
procedural problems that the local government simply cannot 
handle. For example, procedurally, the Commonwealth cannot 
replicate the resources of the Federal Government in issuing 
visas, screening individuals, and applying a double-check on 
persons seeking to enter the United States to prevent the entry 
of criminals or others who should be excluded, such as persons 
with communicable diseases. The Commonwealth also has problems 
tracking individuals. The recent amnesty program produced about 
3,000 persons who were on the island illegally.
    On a substantive basis, aspects of the Commonwealth 
immigration system are also simply inconsistent with Federal 
policy. Among those is the policy that persons admitted into 
the United States to fill permanent jobs do so as immigrants 
with the ability to become United States citizens. Also, the 
Commonwealth cannot enforce Federal requirements under 
international agreements, such as the treatment of persons 
seeking amnesty. As a general matter, Federal laws should apply 
and be enforced in the territories as in the rest of the United 
States with such changes and modifications as are justified to 
take into account the individual situation of each of the 
territories. That was the Committee expectation when it first 
considered the Covenant, as stated in its report to accompany 
the Joint Resolution approving the Covenant. The Commonwealth 
is not a foreign country and should not be treated as such. 
Federal immigration laws should apply to the Commonwealth but 
should be extended in an orderly manner with a commitment by 
Federal agencies to mitigate any potential adverse effects and 
encourage diversification and growth of the local economy.

                               BACKGROUND

    The Commonwealth of the Northern Mariana Islands is a three 
hundred mile archipelago consisting of fourteen islands 
stretching north of Guam. The largest inhabited islands are 
Saipan, Rota, and Tinian. Magellan landed at Saipan in 1521 and 
the area was controlled by Spain until the end of the Spanish-
American War. Guam, the southernmost of the Mariana islands, 
was ceded to the United States following the Spanish-American 
War and the balance sold to Germany together with the remainder 
of Germany's possessions in the Caroline and Marshall Islands.
    Japan seized the area during World War I and became the 
mandatory power under a Leagueof Nations Mandate for Germany's 
possessions north of the equator on December 17, 1920. By the 1930's 
Japan had developed major portions of the area and began to fortify the 
islands. Guam was invaded by Japanese forces from Saipan in 1941. The 
Marianas were secured after heavy fighting in 1944 and the bases on 
Tinian were used for the invasion of Okinawa and for raids on Japan, 
including the nuclear missions on Hiroshima and Nagasaki. In 1947, the 
Mandated islands were placed under the United Nations trusteeship 
system as the Trust Territory of the Pacific Islands (TTPI) and the 
United States was appointed as the Administering authority. The area 
was divided into six administrative districts with the headquarters 
located in Hawaii and then in Guam. The TTPI was the only ``strategic'' 
trusteeship with review by the Security Council rather than the General 
Assembly of the United Nations. The Navy administered the Trusteeship, 
together with Guam, until 1951, when administrative jurisdiction was 
transferred to the Department of the Interior. The Northern Marianas, 
however, were returned to Navy jurisdiction from 1952-1962. In 1963, 
administrative headquarters were moved to Saipan.
    With the establishment of the Congress of Micronesia in 
1965, efforts to reach an agreement on the future political 
status of the area began. Attempts to maintain a political 
unity within the TTPI were unsuccessful, and each of the 
administrative districts (Kosrae eventually separated from 
Pohnpei District in the Carolines) sought to retain its 
separate identity. Four of the districts became the Federated 
States of Micronesia, the Marshalls became the Republic of the 
Marshall Islands, and Palau became the Republic of Palau, all 
sovereign countries in free association with the United States 
under Compacts of Free Association. The Marianas had sought 
reunification with Guam and United States territorial status 
from the beginning of the Trusteeship. Separate negotiations 
with the Marianas began in December 1972 and concluded in 1975.
    In 1976, Congress approved a Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Political union 
with the United States (PL 94-241). The Covenant had been 
approved in a United Nations observed plebiscite in the 
Northern Mariana Islands and formed the basis for the 
termination of the United Nations Trusteeship with respect to 
the Northern Mariana Islands. In general, and with few 
exceptions, the Covenant provided for the application of 
Federal laws to the CNMI as those laws applied to Guam. 
Although the CNMI had sought an exemption from Federal 
immigration law, the U.S. position that those laws would apply 
prevailed and the CNMI negotiators agreed. However, when the 
United States decided not to seek separate termination of the 
Trusteeship for the CNMI only, the CNMI again raised the 
question of the application of Federal immigration law since 
application implicated U.S. sovereignty. The United States 
would not agree to an exemption, but rather proposed deferral 
of application. Termination finally occurred in 1986 for the 
CNMI and for the Republic of the Marshall Islands and the 
Federated States of Micronesia. Prior to termination, those 
provisions of the Covenant that were consistent with the status 
of the area were made applicable by the U.S. as Administering 
authority. Other provisions (such as the extension of U.S. 
sovereignty) were not made applicable. Section 503 of the 
Covenant provides in pertinent part that:

    The following laws of the United States, presently 
inapplicable to the Trust Territory of the Pacific Islands, 
will not apply to the Northern Mariana Islands except in the 
manner and to the extent made applicable to them by the 
Congress by law after termination of the Trusteeship Agreement:
          (a) except as otherwise provided in Section 506 
        [which dealt with certain children born abroad and 
        immediate relatives], the immigration and 
        naturalization laws of the United States; .  .  .
          (c) the minimum wage provisions of Section 6, Act of 
        June 25, 1938, 52 Stat. 1062, as amended.

    The Covenant permitted a unique system in the CNMI under 
which the local Government controlled immigration and minimum 
wage levels until Congress decided to extend Federal 
legislation and also had the benefit of duty and quota free 
entry of manufactured goods under the provisions of General 
Note 3(a) of the Harmonized Tariff Schedules. Although certain 
provisions of the Covenant, such as the provisions on 
citizenship, are explicitly made subject to mutual consent, 
these provisions can be modified or repealed by the Congress. 
The Section by Section analysis of the Committee Report on the 
Covenant provides in part:

          Section 503.--This section deals with certain laws of 
        the United States which are not now applicable to the 
        Northern Mariana Islands and provides that they will 
        remain inapplicable except in the manner and to the 
        extent that they are made applicable by specific 
        legislation enacted after the termination of the 
        Trusteeship. These laws are:
          The Immigration and Naturalization Laws (subsection 
        (a)). The reason this provision is included is to cope 
        with the problems which unrestricted immigration may 
        impose upon small island communities. Congress is aware 
        of those problems. .  .  . It may well be that these 
        problems will have been solved by the time of the 
        termination of the Trusteeship Agreement and that the 
        Immigration and Nationality Act containing adequate 
        protective provisions can then be introduced to the 
        Northern Mariana Islands.

           *       *       *       *       *       *       *

          The same consideration applies to the introduction of 
        the Minimum Wage Laws. (Subsection (c)). Congress 
        realizes that the special conditions prevailing in the 
        various territories require different treatment. .  .  
        . In these circumstances, it would be inappropriate to 
        introduce the Act to the Northern Mariana Islands 
        without preliminary studies. There is nothing which 
        would prevent the Northern Mariana Islands from 
        enacting their own Minimum Wage Legislation. Moreover, 
        as set forth in section 502(b), the activities of the 
        United States and its contractors in the Northern 
        Mariana Islands will be subject to existing pertinent 
        Federal Wages and Hours Legislation. (S. Rept. 94-433, 
        pp. 77-78)

    The Committee anticipated that by the termination of the 
Trusteeship, the FederalGovernment would have addressed the 
potential problems, and that Federal legislation would then be 
extended. The primary need for alien workers was likely to be in 
construction, temporary jobs that could be accommodated under federal 
immigration laws. At the time the Covenant was negotiated, prospects 
for economic development focused on tourism and anticipated Department 
of Defense use of Tinian.
    Upon termination of the Trusteeship for the CNMI in 1986, 
the CNMI became a territory of the United States under US 
sovereignty and its residents became United States citizens. 
Although the population of the CNMI was only 15,000 people in 
1976 when the Covenant was approved, the population (as of July 
1999) is estimated at 79,429. The rapid increase in population 
coincides with the assumption of immigration control by the 
CNMI. According to the most recent statistical survey by the 
CNMI, 78% of the CNMI population were United States citizens in 
1980. That figure had declined to less than 47% by 1990 and to 
42% by 1991. In 1980, total non-US citizen residents totaled 
only 3,753 of whom 1,593 were citizens of the freely associated 
states and only 2,160 came from outside Micronesia.
    Shortly after the Covenant went into effect, the CNMI began 
to experience a growth in tourism and a need for workers in 
both the tourist and construction industries. Interest also 
began to grow in the possibility of textile production in both 
the CNMI and Guam. Initial interest was in production of 
sweaters made of cotton, wool and synthetic fibers. The CNMI, 
like the other territories except for Puerto Rico, is outside 
the U.S. customs territory but can import products manufactured 
in the territory duty free provided that the products meet a 
certain value added amount under General Note 3(a) of the 
Tariff Schedules (then called Headnote 3(a)). The first company 
began operation in October, 1983 and within a year was joined 
by two other companies. Total employment for the three firms 
was 250 of which 100 were local residents. At the time, Guam 
had a single firm, Sigallo-Pac, also engaged in sweater 
manufacture with 275 workers, all of whom, however, were U.S. 
citizens.
    Attempts by territories to develop textile or apparel 
industries have traditionally met resistance from Stateside 
industries. The use of alien labor in the CNMI intensified that 
concern, and efforts began in 1984 to sharply cut back or 
eliminate the availability of duty free treatment for the 
territories. The concerns also complicated Senate consideration 
of the Compacts of Free Association in 1985 and led to a delay 
of several months in floor consideration when some Members 
sought to attach textile legislation to the Compact 
legislation. The response from the CNMI was that they would 
look to limitations on immigration and increased requirements 
for use of local labor.
    The labor force (all persons 16 years or older including 
temporary alien labor) grew from 9,599 in 1980 to 32,522 in 
1990. Manufacturing grew from 1.9% of the workforce in 1980 to 
21.9% in 1990, only slightly behind construction which grew 
from 16.8% to 22.2% in the same time frame. The construction 
numbers track a major increase in hotel construction. At the 
same time, increases in the local minimum wage were halted, as 
the CNMI began to increasingly rely on imported temporary 
workers.
    The majority of the population resides on Saipan, which is 
the economic and government center of the CNMI. The most recent 
statistics (March 1999) from the CNMI estimate the population 
of Saipan at 71,790. U.S. citizens are estimated at 30,154 of 
whom 24,710 are CNMI born. There are 41,636 aliens of whom 
about 4,000 are from the freely associated states.
    There is also a significant population of illegal aliens 
with estimates ranging from 3,00 to as high as 7,000 persons. 
The April 1999 CNMI report on the joint Federal-CNMI initiative 
on Labor, Immigration, and Law Enforcement noted that a limited 
immunity program enacted in September 1998 had resulted in 
almost 2,000 illegal aliens registering by March of 1999. The 
CNMI relies on its Central Statistics Division to estimate the 
illegal alien population at less than 3,000. The 1998 report 
from the Administration on the law enforcement initiative 
(fourth report) estimated the number of unauthorized aliens at 
7,000.
    The 1995 census statistics from the Commonwealth lists 
total unemployment at 7.1%, with CNMI born at 14.2% and Asia 
born at 4.5%. The draft 1999 second quarter report from the 
CNMI Central Statistics Division lists unemployment among CNMI-
born U.S. citizens at 15.3% with non-resident non-citizen 
unemployment at 3.1%. Of the 15,251 United States residents 
above 16 years in the CNMI, 10,438 are in the labor force with 
employment of 9,039. The local U.S. citizen unemployment rate 
suggests that guest workers are taking jobs from local 
residents.
    The percentage of non-U.S. citizens in the labor force has 
increased from 27.5% in 1973 to 37.8% in 1980 to 74.9% in 1990 
with a decline to 73.3% in 1995. Recent statistics indicate 
that non-US citizens represent 77.4% of the labor force on 
Saipan in the first quarter of 1999. The comparable figure for 
Saipan for 1995 was 74.9%. The figures, however, are more 
striking when the composition of the public versus private 
sector is examined. For the first quarter of 1999, the public 
sector on Saipan had a workforce of 2,463 of whom only 9% were 
non-U.S. citizens. For the private sector on Saipan during the 
same period, 84% of the workforce were non-US citizens.
    While jobs in the garment industry are unattractive to 
local residents, local businesses are using the guest worker 
program and the willingness of alien workers to work for lower 
wages to fill skilled managerial and professional positions 
(including plumbers and electricians, as well as accountants) 
with foreign workers. For example, the June 14, 1999 Marianas 
Variety listed a variety of job offers, including: Plumber--
$3.25/hr; Accountant--$3.05/hr; Carpenter--$3.05/hr; and 
Electrician--$4.15/hr.
    One result of this situation is that the public sector, 
where average wages exceed both the local and federal minimum 
wage, has become a primary employer for local residents. What 
job creation exists in the private sector goes to foreign 
workers. The ability to obtain skilled foreign workers at low 
wages effectively forecloses opportunities for United States 
residents in both entry and skilled positions. The private 
sector job market for recent CNMI graduates is better in Guam 
than in the CNMI. Another consequence is that there is little 
incentive for specialized or graduate training since companies 
can readily obtain experienced workers from foreign countries 
at wage levels that are unattractive to CNMI residents. A by-
product of this situation has been increased pressure on the 
public sector to expand solely to provide jobs. The average 
wage rate for the public sector for the first quarter of 1999 
was reported by the CNMI Department ofCommerce as $12.89/hr. 
For the CNMI, the lack of private sector jobs for local residents has 
frustrated efforts to trim the public sector budget. As the CNMI 
becomes more dependent on local revenues to pay the wages of public 
sector employees, it also becomes more dependent on a system of 
imported labor at the expense of local jobs in the private sector. This 
situation was neither intended nor contemplated by either side in the 
negotiations that led to the Covenant.
    Repeated allegations of violations of applicable federal 
laws relating to worker health and safety, concerns with 
respect to immigration problems, including the admission of 
undesirable aliens, and reports of worker abuse, especially in 
the domestic and garment worker sectors, led to the inclusion 
of a $7 million set aside in appropriations in 1994 to the 
Department of the Interior to support Federal agency presence 
in the CNMI. The Department of the Interior reported to the 
Committee on April 24, 1995 that:
          (1) $3 million would be used by the CNMI for a 
        computerized immigration identification and tracking 
        system and for local projects;
          (2) $2.2 million would be used by the Department of 
        Justice to strengthen law enforcement, including the 
        hiring of an additional FBI agent and Assistant US 
        Attorney;
          (3) $1.6 million would be used by Labor for two 
        senior investigators as well as training; and
          (4) $200,000 would be used by Treasury for assistance 
        in investigating violations of federal law with respect 
        to firearms, organized crime, and counterfeiting.
    In addition, the report recommended that Federal law be 
enacted to phase in the current CNMI minimum wage rates to the 
Federal minimum wage level in 30 cent increments as then 
provided by CNMI legislation, end mandatory assistance to the 
CNMI when the current agreement was fulfilled, continue annual 
support of federal agencies at a $3 million/year level (which 
would include funding for a detention facility that meets 
Federal standards), and possible extension of Federal 
immigration laws.
    During the 104th Congress, the Senate passed S. 638, 
legislation supported by the Administration. Concern over the 
effectiveness of the CNMI immigration laws and reports of the 
entry of organized criminal elements from Japan and China led 
the Committee to include a provision to require the 
Commonwealth ``to cooperate in the identification and, if 
necessary, exclusion or deportation from the Commonwealth of 
the Northern Mariana Islands of persons who represent security 
or law enforcement risks to the Commonwealth of the Northern 
Mariana Islands or the United States.'' (Sec. 4 of S. 638) No 
action was taken by the House.
    In February 1996, Members of the Committee visited the CNMI 
and met with local and Federal officials. In addition, the 
Members inspected a garment factory and met with Bangladesh 
security guards who had not been paid and who were living in 
substandard conditions. As a result of the meetings and 
continued expressions of concern over conditions, the Committee 
held an oversight hearing on June 26, 1996, to review the 
situation in the CNMI. At the hearing, the acting Attorney 
General of the Commonwealth requested that the Committee delay 
any action on legislation until the Commonwealth completed a 
study on minimum wage and promised that the study would be 
completed by January. That timing would have enabled the 
Committee to revisit the issue in the April-May 1997 period 
after the Administration had transmitted its annual report on 
the law enforcement initiative. While the CNMI Study was not 
finally transmitted until April, the Administration did not 
transmit its annual report, which was due in April, until July. 
On May 30, 1997, the President wrote the Governor of the 
Northern Marianas that he was concerned over activities in the 
Commonwealth and had concluded that federal immigration, 
naturalization, and minimum wage laws should apply.
    Given the reaction that followed the President's letter, 
the Chairman of the Committee asked the Administration to 
provide a drafting service of the language needed to implement 
the recommendations in the annual report and informed the 
Governor of the Commonwealth of the request and that the 
Committee intended to consider the legislation after the 
Commonwealth had an opportunity to review it. The drafting 
service was not provided until October 6, 1997 and was 
introduced on October 8, 1997, as S. 1275, shortly before the 
elections in the CNMI. The Committee deferred hearings so as 
not to intrude unnecessarily into local politics and to allow 
the CNMI an opportunity to review and comment on the 
legislation after the local elections.
    The United States Commission on Immigration Reform 
conducted a site visit to the Northern Marianas in July 1997 
and issued a report which in general supported extension of 
immigration laws. The report, however, also raised some 
concerns with the extension of U.S. immigration laws. The 
report found problems in the CNMI ``ranging from bureaucratic 
inefficiencies to labor abuses to an unsustainable economic, 
social and political system that is antithetical to most 
American values'' but ``a willingness on the part of some CNMI 
officials and business leaders to address the various 
problems''.
    The Report found that:
    --The CNMI Department of Labor and Immigration ``does not 
have the capacity, nor is it likely to develop one, to 
prescreen applicants for entry prior to their arrival on CNMI 
territory.'' This leads to the situation of the Bangladesh 
workers who arrive and find there is no work as well as to the 
entry of those with criminal or other disqualifying records. 
Federal law enforcement officials are mentioned as not 
providing information to the CNMI due to concerns over security 
and corruption.
    --The levels of immigration led to dependence on government 
employment or benefits for United States residents unable to 
find work and younger residents having to leave to find work. 
The Report also noted that those on welfare could still hire 
domestics.
    --The economy is unsustainable because there will be no 
advantage for the garment industry when the multi-fibre 
agreement comes into force in 2005. Others also share the view 
that the garment industry presence in the CNMI is temporary. In 
September 1997, the bank of Hawaii concluded that the presence 
of the garment industry was a result of ``a unique and 
temporary comparative economic advantage'' and that the CNMI 
should begin to plan for a ``transition to an exclusively 
tourism-driven economy''.
    --Foreign workers are exploited with retaliation against 
protestors, failure of the CNMI government to prosecute, 
unreliable bonding companies, exorbitant recruitment fees, 
suppression of basic freedoms, and flagrant abuses of household 
workers, agricultural workers, and bar girls.
    --The CNMI has entered into agreements dealing with trade 
and immigration with the Philippines and China over United 
States State Department objections.
    --The CNMI has no asylum policy or procedure placing the 
United States in violation of international obligations.
    --The temporary guest worker for permanent jobs creates 
major policy problems as well as creating a two class system 
where the majority of workers are denied political and social 
rights. In the US proper, such workers would be admitted for 
residence and could become citizens. Worse, the children of 
these workers are United States citizens. The children of 
foreign mothers now account for 16% of United States citizens.
    The Report, however, also raised some concerns over an 
immediate imposition of U.S. immigration laws:
    --Absent a transition, few workers would be eligible for a 
visa and there would be an impact on the economy.
    --The federal government is not positioned to take over and 
enforce immigration laws. The Report cited INS officials 
indicating a need for 60 positions and the general disinterest 
of federal agencies such as INS, OSHA, and Labor in enforcing 
federal law unless Interior underwrote the cost.
    --The relationship between INS and the local Department was 
very bad and the United States Department of State has no 
operational relations with CNMI immigration. Without local 
cooperation, federal enforcement would be more difficult.
    The Report noted that the CNMI was not likely to take any 
corrective action absent a threat of federal takeover. The 
Report recommended that the United States and CNMI negotiate an 
agreement to eliminate abuses, backed by the threat of United 
States takeover. Specifically, the Report recommended:
          --phase out (3-5 years) foreign contract workers in 
        explotive industries (garment workers, domestic, bar 
        girls);
          --adopt specific provisions for professionals and 
        executives (Mainly wages);
          --limited provisions for temporary workers in 
        permanent construction, hotel, and restaurant jobs with 
        phase in of wages to Guam levels and decreasing slots 
        for foreign workers;
          --guaranteed access to asylum procedures;
          --legal permanent resident status to contract workers 
        who would be eligible for such status elsewhere in the 
        US;
          --effective prescreening of foreign contract workers 
        as is done elsewhere in the US;
          --control of recruitment fees;
          --vigorous enforcement of local laws, especially on 
        payment of wages and working conditions;
          --increase inspections; and
          --increased federal training.
    The Committee conducted a hearing on March 31, 1998 on S. 
1275 and S. 1100, similar legislation introduced by Senator 
Akaka and others. The Committee heard from the Administration, 
the government of the CNMI, workers and representatives of the 
local industry, as well as public witnesses.
    On May 20, 1998, the Committee ordered S. 1275 favorably 
reported with amendments. The Committee amendments deleted 
provisions altering General Note 3(a) of the tariff schedules 
and provisions dealing with the ``Made in the USA'' label. The 
Committee also deleted the provisions that directly phased in 
minimum wage rates to the federal rate in favor of an industry 
committee as had been the practice in other territories. The 
Committee adopted the provisions for extension of federal 
immigration laws with several changes. In response to the 
Governor's request that he be given an opportunity to prove 
that the CNMI could implement an effective immigration program, 
the Committee made extension contingent upon a finding by the 
Attorney General that the CNMI had either not adopted an 
effective immigration system or had not demonstrated a 
commitment to enforce it.
    On October 6, 1998, the Secretaries of Labor, Commerce, the 
Interior, and the Attorney General wrote a letter to the 
Committee urging action on the Administration's proposal, but 
the Senate was not able to consider the legislation prior to 
adjournment. On May 13, 1999, Senator Murkowski, for himself 
and Senators Akaka and Bingaman, introduced S. 1052, 
incorporating the Committee reported immigration provisions 
from the previous Congress, with a minor amendment.
    The presence of a large alien population in the CNMI is not 
simply a matter of localconcern. Althoughe temporary workers 
admitted into the CNMI may not enter elsewhere in the United States and 
their presence in the CNMI does not constitute residence for the 
purpose of obtaining U.S. citizenship, that limitation does not apply 
to their children. Persons born in the CNMI obtain United States 
citizenship by birth and eventually will be able to bring their 
immediate families into the United States. There is an increasing 
number of births to non-citizen mothers. In 1985, of 675 births, 260 
were to non-citizen mothers. While the number of United States citizen 
mothers remained relatively constant, the number of non-citizen mothers 
increased to 581 by 1990, 701 in 1991, 859 in 1992, and continued 
around 900-1000 with the exception of 1,409 in 1996. For that year, 
total births were 1,890 with the percentage of United States citizen 
mothers at 25%. While some of the presumed non-citizen mothers are 
likely to be married to CNMI residents, others are not and all entered 
outside of Federal immigration laws. The result is that there is an 
increasing number of persons obtaining United States citizenship 
outside the boundaries of United States immigration and naturalization 
law. There are also incidental effects on various Federal programs, 
such as education, that the children and their immediate relatives will 
be eligible for. To the extent that the current CNMI immigration and 
wage system results in structural unemployment among resident United 
States citizens, there are also effects on federal programs providing 
assistance to the poor.
    The Commission on Immigration Reform noted most of the 
elements that have been mentioned in various reports. The use 
of temporary workers to fill permanent jobs is a direct policy 
issue for the Federal Government. The CNMI does not have an 
asylum policy, which is a Federal obligation. Earlier this 
year, an organized operation from China attempted to smuggle 
individuals into Guam. Eventually, the Federal Government 
adopted a policy of intercepting boats at sea and diverting 
them to the Northern Marianas prior to repatriating the 
individuals and prosecuting the smugglers. Although Federal 
immigration laws did not apply, Federal agencies did consider 
any requests for asylum, but the absence of Federal law 
complicated consideration.
    Concerns have also arisen over the use of the Northern 
Marianas for importation and transhipment of drugs. The June 
17, 1999 Marianas Variety reported the Finance Department's 
Division of Customs to have confiscated over $2.5 million of 
crystal metamphetamine in 1998 with an increasing number of 
drug arrests. A related concern raised by the Administration 
has been the ability of the CNMI to exclude individuals, 
especially members of organized crime from Japan and China. The 
CNMI does not have a data base to screen immigrants, and 
accomplishes most of its screening on arrival. The Federal 
Government, however, for those countries that require visas, 
does its screening in the foreign country. Federal law 
enforcement agencies have cited security concerns as a major 
impediment to sharing information with the CNMI government.
    Another concern has been increase in the level of 
communicable diseases, especially tuberculosis. The April 1999 
CNMI report on Law Enforcement noted that the CNMI has 
committed to require screening of all workers and that under 
current regulations, ``if a worker is diagnosed with a 
communicable disease within ninety days of entry into the CNMI, 
they are deported back to their country of origin.'' The report 
did note that they were attempting to deal with individuals who 
``once diagnosed would become illegal and disappear rather than 
come in for treatment.'' The report also states that most cases 
are reactivation disease. ``That is they are infected with TB 
but have not signs of TB upon entry into the CNMI. After being 
in the CNMI for 2-5 years, their TB reactivates and they become 
contagious.'' (p.49) Both Guam and the CNMI have rates of 
active TB well in excess of the North American average of 9 
cases per 100,000. The 1995 Division of Public Health assessed 
the mean for the CNMI from 1991-1995 at 77.9 cases per 100,000 
population, the majority among the non-resident contract 
workers.
    The Committee held a hearing on S. 1052 on September 14, 
1999. After considering the testimony from the Governor and 
others from the CNMI and from the Administration, the Committee 
considered S. 1052 at a business meeting on October 20, 1999. 
The Committee responded to the concerns raised by both the 
representatives from the CNMI and the Administration by 
adopting an amendment in the nature of a substitute. The 
Committee described its action as follows:

    The Committee amendment makes several changes to the 
legislation as introduced. The most significant is the 
elimination of provisions recommended by the Committee last 
Congress that would have conditioned extension of Federal 
immigration laws on a finding by the Attorney General that the 
Commonwealth of the Northern Mariana Islands (CNMI) did not 
have the institutional capability to meet immigration standards 
or had not demonstrated a genuine commitment to do so. The 
Representatives of the CNMI testified that they did not trust 
the Administration to promulgate reasonable standards or do a 
fair evaluation. The CNMI believed that since the 
Administration supported extension of Federal law, the Attorney 
General's conclusion was predetermined. On the other side, the 
Administration opposed the provision because they believed that 
the CNMI would only use the promulgation of standards and the 
finding as excuses to litigate and delay extension of federal 
laws. While there is a limited possibility that a local 
immigration system could be implemented in a manner consistent 
with Federal policies, there does not appear to be a way to 
reach that result. As a result, the Committee amendment deletes 
the contingency and provides that Federal immigration laws will 
apply to the CNMI.
    The Committee has adopted a series of additional amendments 
to provide for a smooth transition to address some of the 
concerns expressed by the CNMI. The Committee has adopted a 
Statement of Purpose to guide Federal agencies in implementing 
the legislation. The Statement makes clear that the Committee 
expects the transition to be orderly and that Federal agencies 
should seek to minimize potential adverse effects. Some impact 
is unavoidable, but the CNMI has a considerable economic 
potential. A commitment by Federal agencies to support local 
legitimate businesses in tourism and encourage diversification 
will not only limit adverse effects, but may also serve to 
bring more of the local residents into the work-force.
    The legislation as introduced provided for a transition 
period of not more than ten years. The CNMI expressed concern 
that federal agencies would use the flexibility to sacrifice 
the local economy to a precipitous implementation. The 
Committee amendment eliminates that uncertainty by specifying 
that the transition period will extend to December 31, 2009. 
The amendment provides that each agency having responsibilities 
during the transition shall promulgate regulations. In adopting 
such regulations, the agency should be guided by the Statement 
of Purpose and not solely by administrative convenience.
    During the transition period, the Secretary of Labor will 
provide for a system to allocate permits for temporary labor 
that will be reduced to zero by the end of the transition 
period. The amendment does not require the Secretary to adopt 
any particular system, but the Secretary should adopt a system 
that in the Secretary's estimation is most consistent with the 
Statement of Purpose. The Secretary is not required to use the 
entire transition period not to adopt an even percentage 
reduction over the period, however the Secretary should work 
closely with other Federal agencies and the CNMI to coordinate 
the annual allocation with efforts to recruit, train, and hire 
persons authorized to work in the United States. To the extent 
the Secretary of Labor is successful in using the technical 
assistance language in the Committee amendment (sec. 2(c)) and 
other authorities to obtain such workers, the Secretary will be 
able to reduce the need for temporary alien workers. The 
objective remains an orderly and smooth transition to the full 
application of Federal laws.
    The legislation, as introduced, contained a provision that 
would extend the transition provisions for the hotel industry 
for five year periods if the Attorney General determined that 
there was a continuing need for such workers. The 
Administration requested that the provision be limited to a 
single period of five years or less. The CNMI, on the other 
hand, noted that if the Committee intended to protect the 
tourism industry, that industry was broader than just hotels. 
The CNMI also expressed concern that such a provision might be 
necessary for any new industries that might be developed. The 
Committee amendment broadens the provision to include 
legitimate businesses in the tourism industry and provides that 
no more than two five year extensions may be granted. The 
Attorney General should provide an expansive definition to the 
term ``tourism'' to include not only those businesses 
exclusively engaged in tourist activities, but also those 
businesses that support or depend on such activities, such as 
laundries. The Attorney General should construe the term 
``legitimate'' narrowly and exclude any business that engages 
``directly or indirectly'' in prostitution or any activity that 
is illegal under federal or local law. Operations that are 
merely fronts for other activities should also be excluded. The 
determination by the Attorney General is within the Attorney 
general's sole discretion and is not reviewable. This provision 
provides a safety net for those firms and employers who are 
engaged in legitimate businesses in tourism. The Committee 
amendment also provides for a one-time five year extension for 
other industries if the Secretary of Commerce concludes that 
such an extension is necessary for growth or diversification. 
Effective implementation of federal and local agency authority 
during the transition should obviate the need for any 
extension. The Committee amendment also require the Attorney 
General to report to the Committee if any extension is granted 
on the reasons for the extension, and whether further authority 
should be enacted for an additional extension. At this time the 
Committee cannot estimate what the needs will be for workers in 
the CNMI by 2015, but hopes that both federal and local 
authorities will use the transition period wisely.
    One criticism of the CNMI was that certain aliens were 
hired and remained in the CNMI for extended periods without the 
political and civic rights normally extended to aliens admitted 
into the United States under Federal laws. The CNMI sought to 
deal with that concern by enacting legislation to limit the 
time an alien could remain in the CNMI to three years. That 
provision, however, frustrates legitimate businesses who seek 
to retain workers who they have hired and trained. While the 
overall objective of the legislation is to eventually replace 
the present temporary contract workers with persons admitted on 
a permanent basis under Federal law, there are equities for 
both workers and employers where individuals have been working 
continuously in legitimate businesses in the CNMI. Accordingly, 
the Committee amendment provides a one-time grandfather 
provision that would allow an employer to petition for any 
employee who has been employed in that business for the past 
five years to have the employee classified as an employment-
based immigrant under Federal law. The Committee amendment 
provides for certain checks on the authority. The business must 
be legitimate, using the same narrow definition applicable for 
the transition extension provisions. The employee must have 
been employed by that business for five years and the business 
must have a reasonable expectation of making sufficient 
revenues to continue to employ the alien. This provision 
applies only to individuals employed in a business, and would 
therefore exclude individuals employed as domestics by a family 
or individual (unless the individual were an employee of a 
business that provided cleaning or domestics and had been 
employed directly by that business for the prior five years and 
not by individuals). The provision also excludes individuals 
who may be on the payroll of a business, but who in fact do not 
work in the business, such as a domestic whose salary is paid 
from a business owned or operated by the family with the 
domestic. This provision will assist legitimate businesses in 
the transition. To the extent that legitimate businesses can 
retain current workers, the need for additional alien temporary 
workers during the transition period will be reduced.
    The Committee has expanded the technical assistance 
provisions contained in the legislation to specifically charge 
the Secretary of Commerce to provide assistance to encourage 
growth and diversification of the local economy and the 
Secretary of Labor to provide assistance to recruit, train, and 
hire persons authorized to work in the United States. There is 
concern over the level of unemployment among local residents in 
the CNMI. Specific actions should be taken to provide 
employment opportunities. The transition period also offers a 
chance to provide employment opportunities for residents of the 
freely associated states. The CNMI also expressed concern that 
the United States was not promoting the CNMI as a tourist 
destination. The Committee amendment requires the 
Administration to submit a report to Congress within five years 
after the date of enactment of the Act to review progress in 
implementing this legislation and state what efforts have been 
made to diversify and strengthen the local economy, including 
promoting the CNMI as a tourist destination.
    There are important reasons that require that the United 
States control entry into its territory in the CNMI. If Federal 
agencies charged with responsibilities under this legislation 
for extending those laws do so with sensitivity to local 
economic needs, a commitment to diversifying the local economy, 
and with dedication to recruiting, training, and hiring local 
residents and citizens of the freely associated states, the end 
result will be a stronger local economy and local government. 
(S. Rept. 106-204, pp.20-23)

    During consideration by the Senate, several minor changes 
were made to the legislation. Most notably, the grandfather 
provision was expanded to require that an employee needed to 
have been employed only for four rather than five years; 
provisions for borrowing from other categories of visas that 
are not completely used so as not to increase the overall 
authorized total of immigrants were deleted and a provision 
inserted that visas issued under this act would simply not 
count against any numerical limitation; provisions making 
certain determinations non-reviewable were deleted although the 
language providing that a decision was within the sole 
discretion of the Attorney General was retained; certain 
limiting terms and conditions attached to visas restricting 
permanent residency and ability to work only to the CNMI were 
deleted as were travel restrictions on aliens applying for 
asylum under federal law.

                               Conclusion

    The Committee continues to believe that Federal immigration 
laws should be extended to the Commonwealth at this time. The 
Covenant provided only for a deferral of the application of 
federal immigration laws as a result of the decision to 
postpone termination of the Trusteeship. The Covenant 
contemplated that the laws would be extended at some point 
after termination, and further delay can only serve to 
exacerbate current problems and the burden on local government 
in trying to replicate federal capabilities and conform to 
Federal policies. The Committee is sensitive to the concerns 
raised by the government of the Commonwealth and from various 
individuals and firms in the Commonwealth over the potential 
effects of this extension. The legislation, as passed by the 
Senate during the last Congress, addresses those concerns and 
significantly expands the provisions contained in the measure 
reported during the previous Congress. This legislation also 
specifically addresses the need for Federal agencies, notably 
the Departments of Commerce and Labor, to take a more active 
and aggressive role in helping the local government diversify 
and strengthen the local economy and recruit, train, and hire 
local residents and residents of the freely associated states. 
A transition to full application of Federal immigration laws 
can be accomplished in an orderly manner and limited disruption 
to the local economy, especially if federal agencies consult 
closely with the local elected officials in the implementation 
and enforcement of Federal laws.

                          Legislative History

    S. 507 is identical to S. 1052 of the 106th Congress as 
passed by the Senate. S. 1052 was introduced on May 13, 1999 
and was similar to sections 1 and 2 of S. 1275 as reported by 
the Committee during the 105th Congress. A hearing was held on 
S. 1052 on September 14, 1999. At the business meeting on 
October 20, 1999, the Committee on Energy and Natural Resources 
ordered S. 1052, as amended, favorably reported. On February 7, 
2000, the Senate debated the measure (CR S355-367, S369-373), 
and unanimously passed the legislation and minor amendments to 
the Committee amendment. On February 15, 2000, the legislation 
was referred to the Committee on Resources of the House of 
Representatives. The House took no further action on S. 1052.
    S. 507 was introduced by Senators Murkowski, Akaka, and 
Bingaman on March 8, 2001. At the business meeting on May 23, 
2001, the Committee on Energy and Natural Resources ordered S. 
507 favorably reported without amendment.

           Committee Recommendations and Tabulation of Votes

    The Committee on Energy and Natural Resources, in open 
business session on May 23, 2001, by a majority vote of a 
quorum present, recommends that the Senate pass S. 507, if 
amended as described herein.
    The rollcall vote on reporting the measure was 18 yeas, 4 
nays, as follows:
        YEAS                          NAYS
Mr. Murkowski                       Mr. Nickles*
Mr. Domenici*                       Mr. Thomas
Mr. Craig                           Mr. Burns
Mr. Campbell                        Mr. Kyl
Mr. Shelby*
Mr. Hagel
Mr. Smith
Mr. Bingaman
Mr. Akaka
Mr. Dorgan
Mr. Graham
Mr. Wyden
Mr. Johnson
Ms. Landrieu
Mr. Bayh
Mrs. Feinstein*
Mr. Shumer*
Ms. Cantwell

    *Indicates voted by proxy.

                      Section-by-Section Analysis

                   Section 1. Short Title and Purpose

    This section is self-explanatory. The statement of purpose, 
while not referenced directly in the amendments to Public Law 
94-241, is intended to guide and direct federal agencies in 
implementing the provisions of this Act.

  section 2. immigration reform for the commonwealth of the northern 
                            mariana islands

    Subsection (a) amends Public Law 94-241 (90 Stat. 263, 48 
U.S.C. 1801) (the ``Covenant Act'') which approved the Covenant 
to Establish of Commonwealth of the Northern Mariana Islands in 
Political Union with the United States of America (the 
``Covenant'') by adding a new section 6 at the end.
    The new section 6 provides for the orderly extension of 
Federal immigration laws to the CNMI under a transition program 
designed to minimize adverse effects on the economy. Specific 
provisions are made to ensure access to workers in legitimate 
businesses after the end of the transition and for the 
adjustment of those foreign workers who are presently in the 
CNMI and who have been continuously employed in a legitimate 
business for the past five years.
    Subsection (a) provides, except for any extensions that may 
be provided by the Attorney General to specific industries in 
accordance with the provisions of subsection (d), for a 
transition program ending on December 31, 2009 to provide for 
the issuance of: nonimmigrant temporary alien workers; family-
sponsored, and employment-based immigrant visas.
    Subsection (b) addresses the special problems faced by 
employers in the CNMI due to the Commonwealth's unique 
geographical and labor circumstances by providing an exemption 
from the normal numerical limitations on the admission of H-2B 
temporary workers found in the INA. This subsection enables 
CNMI employers to obtain sufficient temporary workers, if 
United States labor and lawfully admissible freely associated 
state citizen labor are unavailable, for labor sensitive 
industries such as the construction industry.
    Subsection (c) sets forth several requirements during the 
transition program which must be met with respect to temporary 
alien workers who would otherwise not be eligible for 
nonimmigrant classification under the INA. The intent of this 
subsection is to provide a smooth transition from the CNMI's 
current system. The Secretary of Labor will be guided by the 
Act, including the Statement of Purpose and the excerpt from 
pages 20-23 of Senate Report 106-204 set forth in the 
Background and Need portion of this Report in establishing the 
system for the allocating and determining the number of 
permits. Subsection (j) provides for petitions to adjust the 
status of certain long-term employees. If any petitions are 
granted under subsection (j), the number of permits are to be 
reduced accordingly to the extent that the system adopted by 
the Secretary of Labor assumed an allocation of permits for the 
positions held by persons whose status is adjusted under 
subsection (j).
    Subsection (d) provides general limitations on the initial 
admission of most family-sponsored and employment-based 
immigrants to the CNMI, as well as a mechanism for exemptions 
to these general limitations. This subsection is intended to 
address the concerns expressed by this Committee, in approving 
the Covenant in 1976, regarding the effect that uncontrolled 
immigration may have on small island communities.
    Paragraph (1) of this subsection authorizes the Attorney 
General, after consultation with the governor and the 
leadership of the Legislature of the CNMI and in consultation 
with other Federal Government agencies, to exempt certain 
family-sponsored immigrants who intend to reside in the CNMI 
from the general limitations on initial admission at a port-of-
entry in the CNMI or in Guam. For example, unless the CNMI 
recommends otherwise, most aliens seeking to immigrate to the 
CNMI on the basis of a family-relationship with a United States 
citizen or lawful permanent resident would be required to be 
admitted as a lawful permanent resident at a port-of-entry 
other than the CNMI or in Guam, such as Honolulu.
    Paragraph (2) generally provides the Attorney General with 
the authority to admit, under certain exceptional circumstances 
and after consultation with federal and local officials, a 
limited number of employment-based immigrants without regard to 
the normal numerical limitations under the INA. The purpose of 
this provision is to provide a ``fail-safe'' mechanism during 
the transition program in the event the CNMI is unable to 
obtain sufficient workers who are otherwise authorized to work 
under United States law. This paragraph would also provide a 
mechanism for extending the ``fail-safe'' mechanism beyond the 
end of the transition program, for a specified period of time, 
with respect to legitimate businesses in the CNMI.
    Subparagraph (A) provides that the Attorney General, after 
consultation with the Secretary of Labor and the Governor and 
leadership of the Legislature of the CNMI, may find that 
exceptional circumstances exist which preclude employers in the 
CNMI from obtaining sufficient work-authorized labor. If such a 
finding is made, the Attorney General may establish a specific 
number of employment-based immigrant visas to be made available 
under section 203(b) of the INA during the following fiscal 
year. The labor certification requirements of section 212(a)(5) 
will not apply to an alien seeking benefits under this 
subsection.
    Subparagraph (B) deals with entry of persons with 
employment-based immigrant visas and is self-explanatory. 
Persons who are otherwise eligible for lawful permanent 
residence under the transition program may have their status 
adjusted in the CNMI.
    Subparagraph (C) provides that an alien who has obtained 
lawful permanent resident status under this paragraph may, if 
he or she is otherwise eligible, apply for an immigrant visa or 
admission as a lawful permanent resident on another basis under 
the INA.
    Subparagraph (D) provides for not more than two five-year 
extensions, as necessary, of the employment-based immigrant 
visa provisions of this paragraph, with respect to workers in 
legitimate businesses in the tourism industry. This provision 
is designed to ensure that there be a sufficient number of 
workers available to fill positions in the tourism industry 
after the transition period ends. The subparagraph also permits 
a single five-year extension for legitimate businesses in other 
industries. The provisions are explained more fully in the 
excerpt from last Congress'
    Report discussing the amendment adopted by the Committee.
    Subsection (e) deals with nonimmigrant investor visas and 
self-explanatory.
    Subsection (f) deals with persons lawfully admitted into 
the CNMI under local law and is self-explanatory.
    Subsection (g) deals with the effect of these provisions on 
other law and is self-explanatory.
    Subsection (h) provides that no time spent by an alien in 
the CNMI in violation of CNMI law would count towards admission 
and is self-explanatory.
    Subsection (i) provides a one-time grandfather for certain 
long-term employees and is more fully discussed in the excerpt 
from the Report from last Congress describing the Committee 
amendment.
    Subsection (j) provides that any visa issued under this 
section shall not count against any numerical limitation under 
the Immigration and Nationality Act.
    Section 2, subsection (b) provides for three conforming 
amendments to the INA.
    Section 2, subsection (c) provides for technical assistance 
and is discussed more fully in the excerpt from pages 20-23 of 
the Committee's Report from the last Congress on S. 1052 (S. 
Rept, 106-204) set forth in the Background and Need section of 
this Report. The requirement that all expenditures require a 
non-Federal matching contribution of 50 percent applies only to 
expenditures involving the additional incremental funding and 
is to be read to require that those expenditures be at least 50 
percent non-Federal. The provision should not be read to cap 
non-Federal contributions, but to require that, at a minimum, 
each Federal dollar of the additional funding be matched by a 
dollar of non-Federal funds.
    Section 2, Subsection (d) provides administrative authority 
for the Departments of Justice and Labor to implement the 
statute and is self-explanatory.
    Section 2, subsection (e) provides for a report to Congress 
and is discussed more fully in the excerpt from pages 20-23 of 
the Committee's Report from the last Congress on S. 1052 (S. 
Rept. 106-204) set forth in the Background and Need section of 
this Report.
    Section 2, subsection (f) limits the number of alien 
workers present in the CNMI prior to the transition program 
effective date and is self-explanatory.
    Section 2, subsection (g) authorizes appropriations and is 
self-explanatory.

                   Cost and Budgetary Considerations

    The Congressional Budget Office cost estimate report had 
not been received at the time the report was filed. When the 
report becomes available, the Chairman will request that it be 
printed in the Congressional Record for the advice of the 
Senate. On November 19, 1999, the Congressional Budget Office 
submitted a cost estimate for S. 1052, legislation that is 
virtually identical to S. 507. At that time, CBO estimated that 
enactment of S. 1052 would, assuming appropriations, increase 
costs, mostly at the Immigration and Naturalization Service by 
about $6 million over the 2000-2004 period. It also found that 
there would be direct spending as a result of INS being able to 
spend fees that it collected although there would be no 
significant net budgetary impact. CBO also concluded that S. 
1052 contained insignificant intergovernmental mandates and 
private sector mandates.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 507. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    The legislation contemplates the possibility of extension 
of the Federal immigration laws. To the extent that personal 
information is obtained as part of the normal administration of 
the program elsewhere in the United States, the same provisions 
would apply in the Northern Marina Islands. If the Commonwealth 
administers and enforces and effective immigration system under 
current law and Federal law is not extended, it is likely that 
the same information would be obtained. Therefore, there would 
be no additional impact on personal privacy.
    Some additional paperwork would result from the enactment 
of S. 507, as ordered reported, but the Committee does not 
believe that it would be significant.

                        Executive Communications

    The pertinent legislative report received by the Committee 
from the Department of Justice setting forth Executive agency 
recommendations relating to S. 507 is set forth below:

                             Department of Justice,
                             Office of Legislative Affairs,
                                      Washington, DC, May 15, 2001.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: This letter presents the views of the 
Department of Justice on S. 507, the ``Northern Mariana Islands 
Covenant Act.'' We strongly support S. 507.
    S. 507 would extend the Immigration and Nationality Act to 
the Commonwealth of the Northern Mariana Islands (``CNMI''). It 
contains special provisions to allow for the orderly 
application of national immigration law, taking into account 
the local economy in this newest United States territory. S. 
507 is identical to S. 1052 from the 106th Congress.\1\
---------------------------------------------------------------------------
    \1\ The Senate passed S. 1052, but the House of Representatives did 
not act on the bill.
---------------------------------------------------------------------------
    We believe that S. 507 would improve immigration policy by 
guarding against the exploitation and abuse of individuals, by 
helping to ensure that the United States adheres to its 
international treaty obligation to protect refugees, and by 
further hindering the entry into United States territory of 
aliens engaged in international organized crime, terrorism, or 
other such activities. Consequently, we support S. 507 and urge 
its passage.
    This bill has resource implications for the Executive 
branch. If it passes, we look forward to working with the 
appropriate committees to ensure that the necessary resources 
are dedicated to achieve the purpose of the bill.
    Thank you for the opportunity to present our views. Please 
do not hesitate to call upon us if we may be of further 
assistance. The Office of Management and Budget has advised us 
that, from the standpoint of the Administration's program, 
there is no objection to the submission of this letter.
            Sincerely,
                                          Daniel J. Bryant,
                                        Assistant Attorney General.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 507, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                          [Public Law 92-241]

JOINT RESOLUTION To approve the ``Covenant To Establish a Commonwealth 
  of the Northern Mariana Islands in Political Union with the United 
States of America'', and for other purposes

           *       *       *       *       *       *       *

    Resolved by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the 
Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America, 
the text of which is as follows, is hereby approved.

           *       *       *       *       *       *       *

    Sec. 503. The following laws of the United States, 
presently inapplicable to the Trust Territory of the Pacific 
Islands, will not apply to the Northern Mariana Islands except 
in the manner and to the extent made applicable to them by the 
Congress by law after termination of the Trusteeship Agreement:
          (a) except as otherwise provided in Section 506, the 
        immigration and naturalization laws of the United 
        States;
          (b) except as otherwise provided in Subsection (b) of 
        Section 502, the coastwise laws of the United States 
        and any prohibition in the laws of the United States 
        against foreign vessels landing fish or unfinished fish 
        products in the United States; and
          (c) the minimum wage provisions of Section 6, Act of 
        June 25, 1938, 52 Stat. 1062, as amended.

           *       *       *       *       *       *       *

SEC. 6. IMMIGRATION AND TRANSITION.

      (a) Application of the Immigration and Nationality Act 
and Establishment of a Transition Program.--Effective on the 
first day of the first full month commencing one year after the 
date of enactment of the Northern Mariana Islands Covenant 
Implementation Act (hereafter the ``transition program 
effective date''), the provisions of the Immigration and 
Nationality Act, as amended (8 U.S.C. 110 et seq.) shall apply 
to the Commonwealth of the Northern Mariana Islands: Provided, 
That there shall be a transition period ending December 31, 
2009 (except for subsection (d)(2)(D)) following the transition 
program effective date, during which the Attorney General of 
the United States (hereafter ``Attorney General''), in 
consultation with the United States Secretaries of State, 
Labor, and the Interior, shall establish, administer, and 
enforce a transition program for immigration to the 
Commonwealth of the Northern Mariana Islands provided in 
subsections (b), (c), (d), (e), (f), and (i) of this section 
(hereafter the ``transition program''). The transition program 
shall be implemented pursuant to regulations to be promulgated 
as appropriate by each agency having responsibilities under the 
transition program.
    (b) Exemption from numerical limitations for H-2B temporary 
workers.--An alien, if otherwise qualified, may seek admission 
to the Commonwealth of the Northern Mariana Islands as a 
temporary worker under section 101(a)(15)(H)(ii)(B) of the 
Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)(H)(ii)(B)) without counting against the numerical 
limitations set forth in section 214(g) of such Act (8 U.S.C. 
1184(g)).
    (c) Temporary Alien Workers.--The transition program shall 
conform to the following requirements with respect to temporary 
alien workers who would otherwise not be eligible for 
nonimmigrant classification under the Immigration and 
Nationality Act:
          (1) Aliens admitted under this subsection shall be 
        treated as nonimmigrants under section 101(a)(15) of 
        the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)), including the ability to apply, if 
        otherwise eligible, for a change of nonimmigrant 
        classification under section 248 of such Act (8 U.S.C. 
        1258), or adjustment of status, if eligible therefor, 
        under this section and section 245 of such Act (8 
        U.S.C. 1255).
          (2)(A) The United States Secretary of Labor shall 
        establish, administer, and enforce a system for 
        allocating and determining the number, terms, and 
        conditions of permits to be issued to prospective 
        employers for each temporary alien worker who would not 
        otherwise be eligible for admission under the 
        Immigration and Nationality Act. This system shall 
        provide for a reduction in the allocation of permits 
        for such workers on an annual basis, to zero, over a 
        period not to extend beyond December 31, 2009 and shall 
        take into account the number of petitions granted under 
        subsection (i). In no event shall a permit be valid 
        beyond the expiration of the transition period. This 
        system may be based on any reasonable method and 
        criteria determined by the United States Secretary of 
        Labor to promote the maximum use of, and to prevent 
        adverse effects on wages and working conditions of, 
        persons authorized to work in the United States, 
        including lawfully admissible freely associated state 
        citizen labor, taking into consideration the objective 
        ofproviding as smooth a transition as possible to the 
full application of federal laws.
          (B) The United States Secretary of Labor is 
        authorized to establish and collect appropriate user 
        fees for the purpose of this section. Amounts collected 
        pursuant to this section shall be deposited in a 
        special fund of the Treasury. Such amounts shall be 
        available, to the extent and in the amounts as provided 
        in advance in appropriations acts, for the purposes of 
        administering this section. Such amounts are authorized 
        to be appropriated to remain available until expended.
          (3) The Attorney General shall set the conditions for 
        admission of nonimmigrant temporary alien workers under 
        the transition program, and the United States Secretary 
        of State shall authorize the issuance of nonimmigrant 
        visas for aliens to engage in employment only as 
        authorized in this subsection: Provided, That such 
        visas shall not be valid for admission to the United 
        States, as defined in section 101(a)(38) of the 
        Immigration and Nationality Act (8 U.S.C. 1101(a)(38)), 
        except the Commonwealth of the Northern Mariana 
        Islands. An alien admitted to the Commonwealth of the 
        Northern Mariana Islands on the basis of such a 
        nonimmigrant visa shall be permitted to engage in 
        employment only as authorized pursuant to the 
        transition program. No alien shall be granted 
        nonimmigrant classification or a visa under this 
        subsection unless the permit requirements established 
        under paragraph (2) have been met.
          (4) An alien admitted as a nonimmigrant pursuant to 
        this subsection shall be permitted to transfer between 
        employers in the Commonwealth of the Northern Mariana 
        Islands during the period of such alien's authorized 
        stay therein, without advance permission of the 
        employee's current or prior employer, to the extent 
        that such transfer is authorized by the Attorney 
        General in accordance with criteria established by the 
        Attorney General and the Untied States Secretary of 
        Labor.
    (d) Immigrants.--With the exception of immediate relatives 
(as defined in section 201(b)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1151(b)(2)) and persons granted an 
immigrant visa as provided in paragraphs (1) and (2) of this 
subsection, no alien shall be granted initial admission as a 
lawful permanent resident of the United States at a port-of-
entry in the Commonwealth of the Northern Mariana Islands, or 
at a port-of-entry in Guam for the purpose of immigrating to 
the Commonwealth of the Northern Mariana Islands.
          (1) Family-Sponsored Immigrant Visas.--For any fiscal 
        year during which the transition program will be in 
        effect, the Attorney General, after consultation with 
        the Governor and the leadership of the Legislature of 
        the Commonwealth of the Northern Mariana Islands, and 
        in consultation with appropriate federal agencies, may 
        establish a specific number of additional initial 
        admissions as a family-sponsored immigrant at a port-
        of-entry in the Commonwealth of the Northern Mariana 
        Islands, or at a port-of-entry in Guam for the purpose 
        of immigrating to the Commonwealth of the Northern 
        Mariana Islands, pursuant to sections 202 and 203(a) of 
        the Immigration and Nationality Act (8 U.S.C. 1152 and 
        1153(a)).
          (2) Employment-Based Immigrant Visas.--
                  (A) If the Attorney General, after 
                consultation with the United States Secretary 
                of Labor and the Governor and the leadership of 
                the Legislature of the Commonwealth of the 
                Northern Mariana Islands, finds that 
                exceptional circumstances exist with respect to 
                the inability of employers in the Commonwealth 
                of the Northern Mariana Islands to obtain 
                sufficient work-authorized labor, the Attorney 
                General may establish a specific number of 
                employment-based immigrant visas to be made 
                available during the following fiscal year 
                under section 203(b) of the Immigration and 
                Nationality Act (8 U.S.C. 1153(b)). The labor 
                certification requirements of section 212(a)(5) 
                of the Immigration and Nationality Act, as 
                amended (8 U.S.C. 1182(a)(5)) shall not apply 
                to an alien seeking immigration benefits under 
                this subsection.
                  (B) Persons granted employment-based 
                immigrant visas under the transition program 
                may be admitted initially at a port-of-entry in 
                the Commonwealth of the Northern Mariana 
                Islands, or at a port-of-entry in Guam for the 
                purpose of immigrating to the Commonwealth of 
                the Northern Mariana Islands, as lawful 
                permanent residents of the United States. 
                Persons who would otherwise be eligible for 
                lawful permanent residence under the transition 
                program, and who would otherwise be eligible 
                for an adjustment of status, may have their 
                status adjusted within the Commonwealth of the 
                Northern Mariana Islands to that of an alien 
                lawfully admitted for permanent residence.
                  (C) Nothing in this paragraph shall preclude 
                an alien who has obtained lawful permanent 
                resident status pursuant to this paragraph from 
                applying, if otherwise eligible, under this 
                section and under the Immigration and 
                Nationality Act for an immigrant visa or 
                admission as a lawful permanent resident under 
                the Immigration and Nationality Act.
                  (D) Special Provision to Ensure Adequate 
                Employment in the Tourism Industry After the 
                Transition Period Ends.--
                          (i) During 2008, and in 2014 if a 
                        five year extension was granted, the 
                        Attorney General and the United States 
                        Secretary of Labor shall consult with 
                        the Governor of the Commonwealth of the 
                        Northern Mariana Islands and tourism 
                        businesses in the Commonwealth of the 
                        Northern Mariana Islands to ascertain 
                        the current and future labor needs of 
                        the tourism industry in the 
                        Commonwealth of the Northern Mariana 
                        Islands, and to determine whether a 
                        five-year extension of the provisions 
                        of this paragraph (d)(2) would be 
                        necessary to ensure an adequate number 
                        of workers for legitimate businesses in 
                        the tourism industry. For the purpose 
                        of this section, a business shall not 
                        be considered legitimate if it engages 
                        directly or indirectly in prostitution 
                        or any activity that is illegal under 
                        federal or local law. The determination 
                        of whether a business is legitimate and 
                        whether it is sufficiently related to 
                        the tourism industry shall be made by 
                        the Attorney General in his sole 
                        discretion and shall not be 
reviewable.If the Attorney General after consultation with the United 
States Secretary of Labor determines, in the Attorney General's sole 
discretion, that such an extension is necessary to ensure an adequate 
number of workers for legitimate businesses in the tourism industry, 
the Attorney General shall provide notice by publication in the Federal 
Register that the provisions of this paragraph will be extended for a 
five-year period with respect to the tourism industry only. The 
Attorney General may authorize one further extension of this paragraph 
with respect to the tourism industry in the Commonwealth of the 
Northern Mariana Islands if, after the Attorney General consults with 
the United States Secretary of Labor and the Governor of the 
Commonwealth of the Northern Mariana Islands, and local tourism 
businesses, the Attorney general determines, in the Attorney General's 
sole discretion, that a further extension is required to ensure an 
adequate number of workers for legitimate businesses in the tourism 
industry in the Commonwealth of the Northern Mariana Islands.
                          (ii) The Attorney General, after 
                        consultation with the Governor of the 
                        Commonwealth of the Northern Mariana 
                        Islands and the United States Secretary 
                        of Labor and the United States 
                        Secretary of Commerce, may extend the 
                        provisions of this paragraph (d)(2) to 
                        legitimate businesses in industries 
                        outside the tourism industry for a 
                        single five year period if the Attorney 
                        General, in the Attorney General's sole 
                        discretion, concludes that such 
                        extension is necessary to ensure an 
                        adequate number of workers in that 
                        industry and that the industry is 
                        important to growth or diversification 
                        of the local economy.
                          (iii) In making his determination for 
                        the tourism industry or for industries 
                        outside the tourism industry, the 
                        Attorney General shall take into 
                        consideration the extent to which a 
                        training and recruitment program has 
                        been implemented to hire persons 
                        authorized to work in the United 
                        States, including lawfully admissible 
                        freely associated state citizen labor 
                        to work in such industry. No additional 
                        extension beyond the initial five year 
                        period may be granted for any industry 
                        outside the tourism industry or for the 
                        tourism industry beyond a second 
                        extension. If an extension is granted, 
                        the Attorney General shall submit a 
                        report to the Committee on Energy and 
                        Natural Resources of the Senate and the 
                        Committee on Resources of the House of 
                        Representatives setting forth the 
                        reasons for the extension and whether 
                        he believes authority for additional 
                        extensions should be enacted.
    (e) Nonimmigrant Investor Visas.--
          (1) Notwithstanding the treaty requirements in 
        section 101(a)(15)(E) of the Immigration and 
        Nationality Act (8 U.S.C. 1101 (a)(15)(E)), the 
        Attorney General may, upon the application of the 
        alien, classify an alien as a nonimmigrant under 
        section 101(a)(15)(E)(ii) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(15)(E)(ii)) if the 
        alien--
                  (A) has been admitted to the Commonwealth of 
                the Northern Mariana Islands in long-term 
                investor status under the immigration laws of 
                the Commonwealth of the Northern Mariana 
                Islands before the transition program effective 
                date;
                  (B) has continuously maintained residence in 
                the Commonwealth of the Northern Mariana 
                Islands under long-term investor status;
                  (C) is otherwise admissible; and
                  (D) maintains the investment or investments 
                that formed the basis for such long-term 
                investor status.
          (2) Within 180 days after the transition program 
        effective date, the Attorney General and the United 
        States Secretary of State shall jointly publish 
        regulations in the Federal Register to implement this 
        subsection.
          (3) The Attorney General shall treat an alien who 
        meets the requirements of paragraph (1) as a 
        nonimmigrant under section (101(a)(15)(E)(ii)) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)(E)(ii)) until the regulations implementing 
        this subsection are published.
    (f) Persons Lawfully Admitted Under the Commonwealth of the 
Northern Mariana Islands Immigration Law.--
          (1) No alien who is lawfully present in the 
        Commonwealth of the Northern Mariana Islands pursuant 
        to the immigration laws of the Commonwealth of the 
        Northern Mariana Islands on the transition program 
        effective date shall be removed from the United States 
        on the ground that such alien's presence in the 
        Commonwealth of the Northern Mariana Islands is in 
        violation of subparagraph 212(a)(6)(A) of the 
        Immigration and Nationality Act, as amended, until 
        completion of the period of the alien's admission under 
        the immigration laws of the Commonwealth of the 
        Northern Mariana Islands, or the second anniversary of 
        the transition program effective date, whichever comes 
        first. Nothing in this subsection shall be construed to 
        prevent or limit the removal under subparagraph 
        212(a)(6)(A) of such an alien at any time, if the alien 
        entered the Commonwealth of the Northern Mariana 
        Islands after the date of enactment of the Northern 
        Mariana Islands Covenant Implementation Act, and the 
        Attorney General has determined that the Government of 
        the Commonwealth of the Northern Mariana Islands 
        violated subsection (f) of such Act.
          (2) Any alien who is lawfully present and authorized 
        to be employed in the Commonwealth of the Northern 
        Mariana Islands pursuant to the immigration laws of the 
        Commonwealth of the Northern Mariana Islands on the 
        transition program effective date shall be considered 
        authorized by the Attorney General to be employed in 
        the Commonwealth of the Northern Mariana Islands until 
        the expiration of the alien's employment authorization 
        under the immigration laws of the Commonwealth of the 
        Northern Mariana Islands, or the second anniversary of 
        the transition program effective date, whichever comes 
        first.
    (g) Effect on Other Laws.--The provisions of this section 
and the Immigration and Nationality Act, as amended by the 
Northern Mariana Islands CovenantImplementation Act, shall, on 
the transition program effective date, supersede and replace all laws, 
provisions, or programs of the Commonwealth of the Northern Mariana 
Islands relating to the admission of aliens and the removal of aliens 
from the Commonwealth of the Northern Mariana Islands.
    (h) Accrual of Time for Purposes of Section 212(A)(9)(B) of 
the Immigration and Nationality Act, as Amended.--No time that 
an alien is present in violation of the immigration laws of the 
Commonwealth of the Northern Mariana Islands shall by reason of 
such violation be counted for purposes of the ground of 
inadmissibility in section 212(a)(9)(B) of the Immigration and 
Nationality Act (8 U.S.C. 1182(a)(9)(B)).
    (i) One-Time Grandfather Provision for Certain Long-Term 
Employees.--
          (1) An alien may be granted an immigrant visa, or 
        have his or her status adjusted in the Commonwealth of 
        the Northern Mariana Islands to that of an alien 
        lawfully admitted for permanent residence, without 
        regard to the numerical limitations set forth in 
        sections 202 and 203(b) of the Immigration and 
        Nationality Act, as amended, (8 U.S.C. 1152, 1153(b)) 
        and subject to the limiting terms and conditions of an 
        alien's permanent residence set forth in paragraphs (B) 
        and (C) of subsection (d)(2), if:
                  (A) the alien is employed directly by an 
                employer in a business that the Attorney 
                General has determined is legitimate;
                  (B) the employer has filed a petition for 
                classification of the alien as an employment-
                based immigrant with the Attorney General 
                pursuant to section 204 of the Immigration and 
                Nationality Act, as amended, not later than 180 
                days following the transition program effective 
                date;
                  (C) the alien has been lawfully present in 
                the Commonwealth of the Northern Mariana 
                Islands and authorized to be employed in the 
                Commonwealth of the Northern Mariana Islands 
                for the five-year period immediately preceding 
                the filing of the petition;
                  (D) the alien has been employed continuously 
                in that business by the petitioning employer 
                for the 4-year period immediately preceding the 
                filing of the petition;
                  (E) the alien continues to be employed in 
                that business by the petitioning employer at 
                the time the immigrant visa is granted or the 
                alien's status is adjusted to permanent 
                resident;
                  (F) the petitioner's business has a 
                reasonable expectation of generating sufficient 
                revenue to continue to employ the alien in that 
                business for the succeeding four years, and
                  (G) the alien is otherwise eligible for 
                admission to the United States under the 
                provisions of the Immigration and Nationality 
                Act, as amended (8 U.S.C. 1101, et seq.).
          (2) The labor certification requirements of section 
        212(a)(5) of the Immigration and Nationality Act, as 
        amended (8 U.S.C. 1182(a)(5)) shall not apply to an 
        alien seeking immigration benefits under this 
        subsection.
          (3) The fact that an alien is the beneficiary of an 
        application for a preference status that was filed with 
        the Attorney General under section 204 of the 
        Immigration and Nationality Act, as amended (8 U.S.C. 
        1154) for the purpose of obtaining benefits under this 
        subsection, or has otherwise sought permanent residence 
        pursuant to this subsection, shall not render the alien 
        ineligible to obtain or maintain the status of a 
        nonimmigrant under this Act or the Immigration and 
        Nationality Act, as amended, if the alien is otherwise 
        eligible for such nonimmigrant status.
    (j) Statutory Construction.--Nothing in this section may be 
construed to count the issuance of any visa to an alien, or the 
grant of any admission of an alien, under this section toward 
any numerical limitation contained in the Immigration and 
Nationality Act.
                              ----------                              

                    [Public Law 414--June 27, 1952]

AN ACT To revise the laws relating to immigration, naturalization, and 
nationality; and for other purposes.

           *       *       *       *       *       *       *

    Sec. 101. (a) * * *

           *       *       *       *       *       *       *

          (36) The term ``State'' includes the District of 
        Columbia, Puerto Rico, Guam, [and the Virgin Islands of 
        the United States.] the Virgin Islands of the United 
        States, and the Commonwealth of the Northern Mariana 
        Islands.

           *       *       *       *       *       *       *

          (38) The term ``United States'', except as otherwise 
        specifically herein provided, when used in a 
        geographical sense, means the continental United 
        States, Alaska, Hawaii, Puerto Rico, Guam, [and the 
        Virgin Islands of the United States.] the Virgin 
        Islands of the United States, and the Commonwealth of 
        the Northern Mariana Islands.

           *       *       *       *       *       *       *

    (1) Guam: Waiver of Requirements for Nonimmigrant Visitors: 
Conditions of Waiver; Acceptance of Funds From Guam.--
          (1) The requirement of paragraph (7)(B)(i) of 
        subsection (a) of this section may be waived by the 
        Attorney General, the Secretary of State, and the 
        Secretary of the Interior, acting jointly, in the case 
        of an alien applying for admission as a non-immigrant 
        visitor for business or pleasure and solely for entry 
        into and [stay on Guam] stay on Guam and the 
        Commonwealth of the Northern Mariana Islands for a 
        period not to exceed a total of fifteen days, if the 
        Attorney General, the Secretary of State, and the 
        Secretary of the Interior, [after consultation with the 
        Governor of Guam,] after respective consultation with 
        the Governor of Guam or the Governor of the 
        Commonwealth of the Northern Mariana Islands, jointly 
        determine that--
                  (A) an adequate arrival and departure control 
                system has been developed [on Guam,] on Guam or 
                the Commonwealth of the Northern Mariana 
                Islands, respectively, and
                  (B) such as waiver does not represent a 
                threat to the welfare, safety, or security of 
                the United States or its territories and 
                commonwealths.
          (2) an alien may not be provided a waiver under this 
        subsection unless the alien has waived any right--
                  (A) to review or appeal under this Act of an 
                immigration officer's determination as to the 
                admissibility of the alien at the port of entry 
                [into Guam] into Guam or the Commonwealth of 
                the Northern Mariana Islands, respectively, or
                  (B) to contest, other than on the basis of an 
                application for asylum, any action for removal 
                of the alien.
          (3) If adequate appropriated funds to carry out this 
        subsection are not otherwise available, the Attorney 
        General is authorized to accept from the [Government of 
        Guam] Government of Guam, or the Government of the 
        Commonwealth of the Northern Mariana Islands such as 
        may be tendered to cover all or any part of the cost of 
        administration and enforcement of this subsection.

                                

```