29–010 

Calendar No. 109 

113TH CONGRESS REPORT " ! SENATE 1st Session 113–55 

NORTHERN MARIANA ISLANDS 

JUNE 27, 2013.—Ordered to be printed 

Mr. WYDEN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 256] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 256) to amend Public Law 93–435 with respect 

to the Northern Mariana Islands, providing parity with Guam, the 

Virgin Islands, and American Samoa, having considered the same, 

reports favorably thereon with an amendment and recommends 

that the bill, as amended, do pass. 

The amendment is as follows: 

At the end of the bill, add the following: 

SEC. 2. ADJUSTMENT OF SCHEDULED WAGE INCREASES IN THE COMMONWEALTH OF THE 

NORTHERN MARIANA ISLANDS. 

Section 8103(b)(1)(B) of the Fair Minimum Wage Act of 2007 (29 U.S.C. 206 note; 

Public Law 110–28) is amended by striking ‘‘2011’’ and inserting ‘‘2011, 2013, and 

2015’’. 

PURPOSE

The purpose of S. 256 is to convey to the government of the Commonwealth of the Northern Mariana Islands (CNMI) the submerged lands surrounding the islands extending three geographical 

miles outward from the coastline. 

BACKGROUND AND NEED

The Northern Mariana Islands are an archipelago of fourteen islands between the Philippines and Japan and extending north of 

Guam. The United States captured the islands in World War II 

and in 1947 they became a district of the U.S.-administered, 

United Nations Trust Territory of the Pacific Islands. In accordance 

with the terms of the U.N. Trusteeship Agreement, the people of 

the Northern Mariana Islands expressed their desire for their fuVerDate Mar 15 2010 01:21 Jul 02, 2013 Jkt 029010 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\SR055.XXX SR055

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ture political status which was to join in political union with the 

U.S. Following bilateral negotiations, the Covenant to Establish a 

Commonwealth of the Northern Mariana Islands in Political Union 

with the United States of America (the ‘‘Covenant’’) was approved 

in a U.N.-observed plebiscite in the Mariana Islands and by the 

U.S. Congress with the enactment of Public Law 94–241 in 1976. 

The Covenant defined the relationship between the U.S. and the 

CNMI and provided for the establishment of self-government under 

a local constitution, but under the sovereignty of the U.S. The Covenant also extended U.S. citizenship to the islands’ residents. Article VIII provided for the transfer of real property from the Trust 

Territory Government to the new CNMI government, but disagreement arose regarding the status of submerged lands. 

In 1999, the CNMI filed a quiet title suit against the U.S. in the 

U.S. District Court for the Northern Mariana Islands, seeking a 

ruling that the CNMI holds title to the submerged lands underlying the internal waters, archipelagic waters, and territorial 

waters adjacent to the Northern Mariana Islands. The district 

court granted summary judgment in favor of the United States, 

based on the paramountcy doctrine. As established by the Supreme 

Court in United States v. California, 332 U.S. 19 (1947), and subsequent cases, the paramountcy doctrine holds that the United States 

possesses paramount rights over seaward submerged lands, as a 

function of national external sovereignty. 

On appeal, the U.S. Court of Appeals for the Ninth Circuit Court 

of Appeals affirmed the district court’s judgment. CNMI v. United 

States, 399 F.3d 1057 (9th Cir. 2005). The Ninth Circuit held that 

the U.S. acquired paramount rights in the submerged lands off the 

shores of the CNMI based on the U.S. sovereignty over the CNMI 

pursuant to the Covenant. The court recognized, however, that 

Congress can, and has, transferred ownership of submerged lands 

to the states and other territories. The Court specifically cited the 

Submerged Lands Act, 43 U.S.C. 1301 et seq., which conveyed submerged lands up to three geographical miles from shore to the 

states, and the Territorial Submerged Lands Act, 42 U.S.C. 1705, 

which transferred submerged lands to the territories of Guam, the 

U.S. Virgin Islands, and American Samoa. 

The Territorial Submerged Lands Act, which became law in 

1974, two years before approval of the Covenant, did not include 

the CNMI, and CNMI remains the only U.S. territory that does not 

have title to its submerged lands. Legislation is needed to convey 

to the CNMI title to its submerged lands seaward of its coastline. 

LEGISLATIVE HISTORY

On October 25, 2005, during the 109th Congress, the Committee 

on Energy and Natural Resources held a hearing on S. 1831, legislation that contained language along the lines of S. 256 (S. Hrg. 

109–291), but no further action was taken due to objections from 

the CNMI. 

On February 10, 2009, during the 110th Congress, the Delegate 

from the CNMI, Gregorio Kilili Sablan, introduced H.R. 934, which 

contained language along the lines of S. 256. It was reported by the 

House Committee on Natural Resources on June 23, 2009, H. Rept. 

111–176, and passed the House on July 15, 2009, by a vote of 416 

to 0. 


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H.R. 934 was referred to the Senate Committee on Energy and 

Natural Resources on July 16, 2009. The Committee held a hearing 

on December 17, 2009 (S. Hrg. 111–364), and ordered H.R. 934 favorably reported at a business meeting on May 6, 2010. However, 

no further action was taken on the bill during the 111th Congress. 

During the 112th Congress, the Committee held a hearing on S. 

590, introduced by Senator Bingaman and Senator Murkowski (by 

request) (S. Hrg. 112–39), and the House passed similar legislation, 

H.R. 670, but the Senate took no further action on either bill. 

S. 256 was introduced in the 113th Congress on February 7, 

2013, by Senator Wyden and Senator Murkowski. The Committee 

on Energy and Natural Resources held a hearing on April 25, 2013, 

and ordered S. 256 favorably reported, as amended, at a business 

meeting on May 16, 2013. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on May 16, 2013, by a unanimous voice vote of a 

quorum present, recommends that the Senate pass S. 256, if 

amended as described herein. 

COMMITTEE AMENDMENT

During its consideration of S. 256, the Committee adopted an 

amendment to slow the rate of increase of the minimum wage in 

the Commonwealth of the Northern Mariana Islands to mitigate 

the impact of a rapid increase on the CNMI economy. The amendment would delay parity of the CNMI minimum wage with the national minimum wage from 2016 to 2018. 

SECTION-BY-SECTION ANALYSIS

Section 1(a) amends the first section of Public Law 93–438 (48 

U.S.C. 1705; commonly known as the Territorial Submerged Lands 

Act), which conveys the submerged lands up to three geographical 

miles seaward from the coastlines of Guam, the Virgin Islands, and 

American Samoa, to the governments of those territories, by inserting ‘‘the Commonwealth of the Northern Mariana Islands’’ after 

‘‘Guam,’’ every place it appears. The effect of the amendment is to 

convey to the government of the CNMI the lands covered by tidal 

waters up to three geographical miles from the coastline of the 

CNMI, on the same terms as submerged lands were conveyed to 

Guam, the Virgin Islands, and American Samoa. 

Subsection (b) provides that each reference of the date of enactment of Public Law 93–435 shall also be considered as a reference 

to the date of enactment of S. 256. 

Section 2 amends section 8103 of Public Law 110–28 (b)(1)(B) (29 

U.S.C. 206 note; commonly known as the Fair Minimum Wage 

Act), which phases in application of the national minimum wage to 

the Commonwealth of the Northern Mariana Islands, by striking 

‘‘2011’’ and inserting ‘‘2011, 2013, and 2015’’. The effect of this 

change is to prevent the minimum wage in the Commonwealth of 

the Northern Mariana Islands from increasing in 2013 and 2015 as 

originally required under the Fair Minimum Wage Act and, instead, delaying parity between the CNMI minimum wage and the 

national minimum wage from 2016, under current law, to 2018. 


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COST AND BUDGETARY CONSIDERATION

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office. 

S. 256—A bill to amend Public Law 93–435 with respect to the 

Northern Mariana Islands, providing parity with Guam, the 

Virgin Islands, and American Samoa 

CBO estimates that enacting S. 256 would have no significant effect on the federal budget. The bill would convey ownership of submerged lands to the Commonwealth of the Northern Mariana Islands (CNMI) from the mean high tide seaward to the point that 

is three geographical miles from its coast line. The legislation also 

would include CNMI among the islands where the United States 

may establish a naval defensive perimeter. Finally, S. 256 would 

amend the process for changing the minimum wage in American 

Samoa and CNMI. 

Based on information from the Department of the Interior, CBO 

estimates that implementing S. 256 would have no significant cost 

to the federal government. Enacting the bill would not affect direct 

spending or revenues; therefore, pay-as-you-go procedures do not 

apply. 

S. 256 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act. 

On May 2, 2013, CBO transmitted a cost estimate for H.R. 573, 

a bill to amend Public Law 93–435 with respect to the Northern 

Mariana Islands, providing parity with Guam, the Virgin Islands, 

and American Samoa, as ordered reported by the House Committee 

on Natural Resources on April 24, 2013. The two pieces of legislation are similar, and the CBO cost estimates are the same. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by Theresa Gullo, Deputy Assistant Director for Budget Analysis. 

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. 256. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals or businesses. 

No personal information would be collected by the Federal government. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would be required by the 

Federal government from the enactment of S. 256. 

CONGRESSIONALLY DIRECTED SPENDING

S. 256, as reported, does not contain any congressionally directed 

spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 


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EXECUTIVE COMMUNICATIONS

The testimony provided by the Department of the Interior at the 

April 25, 2013, hearing on S. 256 follows: 

STATEMENT FOR THE RECORD OF THE DEPARTMENT OF THE

INTERIOR

Mr. Chairman and members of the Committee, the Department of the Interior is pleased to provide this statement for the record in support of enactment of legislation 

that would convey the three geographical miles of submerged lands adjacent to the Northern Mariana Islands to 

the Government of the Northern Mariana Islands. The Administration would strongly support this bill if amended to 

address the issues outlined below. 

The bill is intended to give the Commonwealth of the 

Northern Mariana Islands (CNMI) authority over its submerged lands from mean high tide seaward to three geographical miles distant from its coast lines. 

It has been the position of the Federal Government that 

United States submerged lands around the Northern Mariana Islands did not transfer to the CNMI when the Covenant came into force. This position was validated in 

Ninth Circuit Court of Appeals opinion in the case of the 

Commonwealth of the Northern Mariana Islands v. the 

United States of America. One consequence of this decision 

is that CNMI law enforcement personnel lack jurisdiction 

in the territorial waters surrounding the islands of the 

CNMI without a grant from the Federal Government. 

At present, the CNMI is the only United States territory 

that does not have title to the submerged lands in that 

portion of the United States territorial sea that is three 

miles distant from the coastline. It is appropriate that the 

CNMI be given the same authority as her sister territories. 

Second, on January 6, 2009, by presidential proclamation, the Marianas Trench Marine National Monument 

was created, including the Islands Unit, comprising the 

submerged lands and waters surrounding Uracas, Maug, 

and Asuncion, the northernmost islands of the CNMI. 

While creation of the monument is a historic achievement, 

it should be remembered that the leaders and people of the 

CNMI were and are these three islands’ first preservationists. They included in their 1978, plebiscite-approved constitution the following language: 

ARTICLE XIV: NATURAL RESOURCES 

Section 1: Marine Resources. The marine resources in the waters off the coast of the Commonwealth over which the Commonwealth now or 

hereafter may have any jurisdiction under United 

States law shall be managed, controlled, protected 

and preserved by the legislature for the benefit of 

the people. 

Section 2: Uninhabited Islands. . . . The islands 

of Maug, Uracas, Asuncion, Guguan and other isVerDate Mar 15 2010 01:21 Jul 02, 2013 Jkt 029010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6969 E:\HR\OC\SR055.XXX SR055

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lands specified by law shall be maintained as 

uninhabited places and used only for the preservation and protection of natural resources, including 

but not limited to bird, wildlife and plant species. 

It is important to note that the legislature has never 

taken action adverse to the preservation of these northern 

islands and the waters surrounding them. The people of 

the CNMI are well aware of their treasures. CNMI leaders 

consented to creation of the monument because they believed that the monument would bring Federal assets for 

marine surveillance, protection, and enforcement to the 

northern islands that the CNMI cannot afford. 

If enacted as introduced, S. 256 would become a public 

law enacted subsequent to the creation of the monument. 

S. 256’s amendments to the Territorial Submerged Lands 

Act would convey to the CNMI the submerged lands surrounding Uracas, Maug, and Asuncion without addressing 

the effect of this conveyance on the administrative responsibilities of the Department of the Interior and the Department of Commerce. Presidential Proclamation 8335 assigned management responsibility of the Marianas Trench 

Marine National Monument to the Secretary of the Interior, in consultation with the Secretary of Commerce. The 

proclamation further states that the ‘‘Secretary of Commerce shall have the primary management responsibility 

. . . with respect to fishery-related activities regulated 

pursuant to the Magnuson-Stevens Fishery Conservation 

and Management Act (16 U.S.C. §§ 1801 et seq.) and any 

other applicable authorities.’’ The proclamation provides 

that submerged lands that are granted to the CNMI ‘‘but 

remain controlled by the United States under the Antiquities Act may remain part of the monument’’ for coordinated management with the CNMI. As envisioned by the 

Presidential Proclamation establishing the Marianas 

Trench Marine National Monument, the Administration is 

proposing an amendment to ensure that the outstanding 

resources in the waters surrounding the CNMI’s three 

northernmost islands remain protected. Thus, the Administration recommends that language be included in S. 256 

referencing the coordination of management contemplated 

within the Proclamation prior to the transfer of the submerged lands within the Islands Unit of the monument to 

the CNMI. This language is intended to protect the Islands 

Unit of the monument and at the same time acknowledge 

the prescient and historic conservation effort of the leaders 

and people of the CNMI in protecting Uracas, Maug, and 

Asuncion, and their surrounding waters. 

The Administration recommends that S. 256 include an 

amendment to subsection (b) of section 1 of the Territorial 

Submerged Lands Act, Public Law 93–435, 48 U.S.C. 1705, 

as follows: 

(xii) any submerged lands within the Islands 

Unit of the Marianas Trench Marine National 

Monument unless or until such time as the ComVerDate Mar 15 2010 01:21 Jul 02, 2013 Jkt 029010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6969 E:\HR\OC\SR055.XXX SR055

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monwealth of the Northern Mariana Islands enters into an agreement with the Secretary of the 

Interior and the Secretary of Commerce for the 

permanent protection and co-management of such 

portion of the Islands Unit. 

The Department of the Interior strongly supports S. 256 

if it is amended to include the legislative language provided. The Department of the Interior looks forward to the 

Commonwealth of the Northern Mariana Islands gaining 

rights in surrounding submerged lands similar to those accorded her sister territories. 

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. 

256, as ordered reported, are shown as follows (new matter is 

printed in italic and existing law in which no change is proposed 

is shown in roman): 

Public Law 93–435, as amended 

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) all deposits of oil, gas, and other minerals, but the term 

‘‘minerals’’ shall not include coral, sand, and gravel; 

* * * * * * * 

(xi) all submerged lands within the Buck Island Reef National Monument as described in Presidential Proclamation 

3448 dated December 28, 1961. 

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) 


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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. 

* * * * * * * 

Public Law 110–28, as amended 

AN ACT Making emergency supplemental appropriations and additional supplemental appropriations for agricultural and other 

emergency assistance for the fiscal year ending September 30, 

2007, and for other purposes. 

* * * * * * * 

TITLE VIII—FAIR MINIMUM WAGE AND TAX RELIEF 

Subtitle A—Fair Minimum Wage 

SEC. 8101. SHORT TITLE. 

This subtitle may be cited as the ‘‘Fair Minimum Wage Act of 

2007’’. 

* * * * * * * 

SEC. 8103. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 

AND THE COMMONWEALTH OF THE NORTHERN MARIANA 

ISLANDS. 

(a) IN GENERAL.—Section 6 of the Fair Labor Standards Act of 

1938 (29 U.S.C. 206) shall apply to American Samoa and the Commonwealth of the Northern Mariana Islands. 

(b) TRANSITION.—Notwithstanding subsection (a)— 

(1) the minimum wage applicable to the Commonwealth of 

the Northern Mariana Islands under section 6(a)(1) of the Fair 

Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be— 

(A) $3.55 an hour, beginning on the 60th day after the 

date of enactment of this Act; and 

(B) increased by $0.50 an hour (or such lesser amount 

as may be necessary to equal the minimum wage under 

section 6(a)(1) of such Act), beginning 1 year after the date 

of enactment of this Act and each year thereafter until the 

minimum wage applicable to the Commonwealth of the 

Northern Mariana Islands under this paragraph is equal 

to the minimum wage set forth in such section, except 

that, beginning in 2010 and each year thereafter (except 

ø2011¿ 2011, 2013, and 2015, when there shall be no increase), such increase shall occur on September 30; and 


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(2) the minimum wage applicable to American Samoa under 

section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 

U.S.C. 206(a)(1)) shall be— 

* * * * * * * 

Æ 


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