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[House Report 111-176]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-176

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 TO CONVEY CERTAIN SUBMERGED LANDS TO THE COMMONWEALTH OF THE NORTHERN 
 MARIANA ISLANDS IN ORDER TO GIVE THAT TERRITORY THE SAME BENEFITS IN 
  ITS SUBMERGED LANDS AS GUAM, THE VIRGIN ISLANDS, AND AMERICAN SAMOA 
                     HAVE IN THEIR SUBMERGED LANDS

                                _______
                                

 June 23, 2009.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Rahall, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 934]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Natural Resources, to whom was referred the 
bill (H.R. 934) to convey certain submerged lands to the 
Commonwealth of the Northern Mariana Islands in order to give 
that territory the same benefits in its submerged lands as 
Guam, the Virgin Islands, and American Samoa have in their 
submerged lands, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. CONVEYANCE OF CERTAIN SUBMERGED LANDS TO THE COMMONWEALTH OF 
                    THE NORTHERN MARIANA ISLANDS.

  (a) In General.--The first section of Public Law 93-435 (48 U.S.C. 
1705) is amended by inserting ``the Commonwealth of the Northern 
Mariana Islands,'' after ``Guam,'' each place it appears.
  (b) References to Date of Enactment.--For the purposes of the 
amendment made by subsection (a), each reference in Public Law 93-435 
(48 U.S.C. 1705) to the ``date of enactment'' shall be considered to be 
a reference to the date of the enactment of this section.
  (c) Nothing in this section amends, repeals, or otherwise alters the 
Proclamation of the President dated January 6, 2009, establishing the 
Marianas Trench Marine National Monument.

                          Purpose of the Bill

    The purpose of H.R. 934 is to convey to the government of 
the Commonwealth of the Northern Mariana Islands (CNMI) the 
submerged lands surrounding such islands and extending three 
geographical miles outward from their coastline.

                  Background and Need for Legislation

    The CNMI, located in the western Pacific Ocean, is an 
archipelago comprised of fourteen islands. The majority of the 
CNMI's population lives on three of the most southern islands: 
its capital Saipan, Rota, and Tinian. The CNMI's southernmost 
island is approximately 40 miles north of the U.S. Territory of 
Guam.
    At the end of World War II, the Northern Mariana Islands, 
along with all other islands in the Micronesian region--except 
Guam, Nauru, and Kiribati--became part of the United Nations 
Strategic Trust Territory of the Pacific Islands (TTPI) 
administered by the United States. Consistent with the U.N. 
trusteeship agreement, the Northern Mariana Islands took steps 
in the early 1970's to express their desire for greater self-
government. By 1975, following negotiations with the U.S. and a 
subsequent local plebiscite, the Northern Mariana Islands 
submitted its ``Covenant'' proposal to the U.S. for final 
approval. After favorable consideration by Congress, the 
Covenant to Establish a Commonwealth of the Northern Mariana 
Islands in Political Union with the United States of America 
(Covenant) was signed into law (P.L. 94-241) in 1976 by 
President Gerald Ford.
    The Covenant, coming into full effect in 1986, conferred 
U.S. citizenship, provided a greater measure of self-
government, and defined the relationship between the U.S. and 
the CNMI. The Covenant's Article VIII addressed the 
distribution of property (right, title, and interest), from the 
TTPI government to the newly formed Northern Mariana Islands 
government.
    In 2004, the CNMI government appealed a ruling of the 
District Court of the Northern Mariana Islands granting summary 
judgment in favor of the United States, requesting a 
declaration by the Ninth Circuit Court of Appeals that the CNMI 
holds title to, or an order mandating that the U.S. quitclaim 
any interest in, the submerged lands ``underlying the internal 
waters, archipelagic waters, and territorial waters adjacent to 
the Northern Mariana Islands.'' The CNMI offered two arguments 
to substantiate its request: (1) contending the paramountcy 
doctrine is inconsistent with the Covenant's limitations on the 
application of federal law, and (2) arguing alternatively that 
the Covenant's transfer of real property creates a ``recognized 
exception'' to the paramountcy doctrine. The doctrine instructs 
that the United States, as a ``function of national external 
sovereignty,'' acquires ``paramount rights'' over seaward 
submerged lands. The Ninth Circuit found neither argument 
persuasive, and thus affirmed the District Court's summary 
judgment.
    In the Ninth Circuit's opinion (CNMI v. United States, 399 
F.3d 1057 (2005)) however, the Court recognizes along with the 
CNMI that Congress can, and has, transferred ownership of 
submerged lands to the states or other entities. The Court 
cites as examples the Submerged Lands Act of 1953 (43 U.S.C. 
Sec. 1301), which transferred lands up to three miles from 
shore back to the states, and 42 U.S.C. Sec. 1705, which 
conveyed submerged lands to Guam, the Virgin Islands, and 
American Samoa.
    H.R. 934 is the first bill sponsored by new CNMI Delegate, 
Gregorio Kilili Sablan and is similar to ones introduced in 
both the House and the Senate during the 109th Congress. The 
Senate Energy and Natural Resources held a hearing where the 
Department of the Interior (DOI) testified in favor of 
conveying submerged lands to the CNMI. Suggested changes to the 
legislation, made by the DOI at that time, are reflected in 
H.R. 934.

                            Committee Action

    H.R. 934 was introduced on February 10, 2009, by Rep. 
Gregorio Kilili Camacho Sablan (I-MP). The bill was referred to 
the Committee on Natural Resources, and within the Committee to 
the Subcommittee on Insular Affairs, Oceans and Wildlife.
    On June 10, 2009, the Subcommittee was discharged from 
further consideration of H.R. 934 and the full Natural 
Resources Committee met to consider the bill. Subcommittee 
Chairwoman Bordallo (D-GU) offered an amendment in the nature 
of a substitute to H.R. 934. The amendment was adopted by 
unanimous consent. The bill, as amended, was then ordered 
favorably reported to the House of Representatives by unanimous 
consent.

                      Section-by-Section Analysis

Section 1. Conveyance of Certain Submerged Lands to the Commonwealth of 
        the Northern Mariana Islands

    Section 1(a) amends Public Law 93-438 (48 U.S.C. 1705) to 
insert ``the Commonwealth of the Northern Mariana Islands'' 
after ``Guam,'' every place it appears in that Act.
    Section 1(b) provides that each reference of the date of 
enactment for Public Law 93-435 shall also be considered as a 
reference to the date of enactment of this section.
    Section 1(c) provides that nothing in this section amends, 
repeals or otherwise alters the establishment of the Marianas 
Trench Marine National Monument.

            Committee Oversight Findings and Recommendations

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

                   Constitutional Authority Statement

    Article IV, section 3 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    Compliance With House Rule XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that Rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.
    3. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goal or 
objective of this bill is to convey to the government of the 
Commonwealth of the Northern Mariana Islands the submerged 
lands surrounding such Islands and extending three geographical 
miles outward from their coastline.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 934--A bill to convey certain submerged lands to the Commonwealth 
        of the Northern Mariana Islands in order to give that territory 
        the same benefits in its submerged lands as Guam, the Virgin 
        Islands, and American Samoa have in their submerged lands

    H.R. 934 would convey ownership of submerged lands to the 
Commonwealth of the Northern Mariana Islands (CNMI) from the 
mean high tide seaward to three geographical miles from its 
coast lines. Under current law, the submerged lands off the 
CNMI are owned by the United States. Based on information from 
the Department of the Interior, CBO estimates that implementing 
this bill would have no significant effect on the federal 
budget.
    H.R. 934 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                    Compliance With Public Law 104-4

    This bill contains no unfunded mandates.

                           Earmark Statement

    H.R. 934 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e) or (f) of rule XXI.

               Preemption of State, Local, or Tribal Law

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

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                         ACT OF OCTOBER 5, 1974

                          (Public Law 93-435)

An Act to place certain submerged lands within the jurisdiction of the 
 governments of Guam, the Virgin Islands, and American Samoa, and for 
                            other purposes.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) 
subject to valid existing rights, all right, title, and 
interest of the United States in lands permanently or 
periodically covered by tidal waters up to but not above the 
line of mean high tide and seaward to a line three geographical 
miles distant from the coastlines of the territories of Guam, 
the Commonwealth of the Northern Mariana Islands, the Virgin 
Islands, and American Samoa, as heretofore or hereafter 
modified by accretion, erosion, and reliction, and in 
artificially made, filled in, or reclaimed lands which were 
formerly permanently or periodically covered by tidal waters, 
are hereby conveyed to the governments of Guam, the 
Commonwealth of the Northern Mariana Islands, the Virgin 
Islands, and American Samoa, as the case may be, to be 
administered in trust for the benefit of the people thereof.
  (b) There are excepted from the transfer made by subsection 
(a) hereof--
          (i) * * *

           *       *       *       *       *       *       *

Upon request of the Governor of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, or American 
Samoa, the Secretary of the Interior may, with or without 
reimbursement, and subject to the procedure specified in 
subsection (c) of this section convey all right, title, and 
interest of the United States in any of the lands described in 
clauses (ii), (iii), (iv), (v), (vi), (vii), or (viii) of this 
subsection to the government of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, or American 
Samoa, as the case may be, with the concurrence of the agency 
having custody thereof.

           *       *       *       *       *       *       *

  (d)(1) The Secretary of the Interior shall, not later than 
sixty days after the date of enactment of this subsection, 
convey to the governments of Guam, the Commonwealth of the 
Northern Mariana Islands, the Virgin Islands, and American 
Samoa, as the case may be, all right, title, and interest of 
the United States in deposits of oil, gas, and other minerals 
in the submerged lands conveyed to the government of such 
territory by subsection (a) of this section.

           *       *       *       *       *       *       *

                                  
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