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[Senate Report 110-324]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 676
110th Congress                                                   Report
2d Session                   SENATE                             110-324
                                                      
======================================================================
 
          NORTHERN MARIANA ISLANDS COVENANT IMPLEMENTATION ACT

                                _______
                                

                 April 10, 2008.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3079]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (H.R. 3079) to amend the joint resolution 
that approved the covenant establishing the Commonwealth of the 
Northern Mariana Islands, and for other purposes, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                         Purpose of the Measure

    The purpose of H.R. 3079 is to extend U.S. immigration laws 
to the Commonwealth of the Northern Mariana Islands (CNMI) as 
provided by Section 503 of the Covenant, but with special 
provisions to ease the transition to Federal law and respond to 
the CNMI's special circumstances. These special provisions 
include: establishing an extendable five-year transition period 
and guest worker program; waiving the numerical limitation on 
nonimmigrant worker visas under the Immigration and 
Naturalization Act (INA) for workers entering the CNMI; 
granting nonimmigrant status to certain alien investors so that 
they may remain in the CNMI; establishing a visa waiver program 
to facilitate travel to the CNMI by tourists and other 
visitors; requiring a report on the future status of certain 
long-term CNMI guest workers; and authorizing technical 
assistance to identify opportunities to diversify and grow the 
CNMI economy, and to recruit, train, and hire U.S. citizens and 
other legal permanent resident workers.

                          Background and Need

    The Northern Mariana Islands lie north of Guam and between 
the Philippines and Japan. The U.S. captured the islands in 
WWII and they became a district of the U.S.-administered, 
United Nations Trust Territory of the Pacific Islands. In 1976, 
Congress approved the Covenant to Establish a Commonwealth of 
the Northern Mariana Islands in Political Union with the United 
States (P.L. 94-241). The Covenant had been approved in a U.N. 
observed plebiscite in the Northern Mariana Islands that 
established the basis for termination of the U.N. Trusteeship 
in 1986. Section 503 of the Covenant provides in 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, the immigration and naturalization laws 
        of the United States; . . .''

    The Section-by-Section analysis of the Committee Report on 
the Covenant provides in part:

        ``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'' (Sen. Rpt. 94-433).

    The Committee anticipated that by the time of the 
Trusteeship termination, the Federal Government would have 
addressed these problems and U.S. immigration laws could then 
be extended. The primary need for alien workers was likely to 
be in construction, temporary jobs that could be accommodated 
under U.S. immigration laws. At the time the Covenant was 
negotiated, prospects for economic development focused on 
tourism and anticipated Department of Defense activity.
    Upon Trusteeship termination, the CNMI became a U.S. 
territory and its residents became U.S. citizens. Although the 
population of the CNMI was only 16,000 when the Covenant was 
approved in 1976, the population was estimated at 80,000 in 
2005. The rapid increase in population coincides with local 
control of immigration. Shortly after the Covenant went into 
effect, the CNMI began to experience growth in both the tourist 
and construction industries. Interest also began to grow in 
garment production. The CNMI, like the other territories except 
Puerto Rico, is outside the U.S. customs territory and can 
export products manufactured in the territory quota-free and 
duty-free to the U.S., provided the products meet certain 
value-added requirements under General Note 3(a) of the Tariff 
Schedules. The first garment manufacturing company began 
operation in the CNMI in October, 1983.
    U.S. officials believed that the period of local 
immigration control would last only a few years, instead it has 
continued for over thirty years. Instead of using local 
immigration control to reduce the impact of immigrants on the 
community, the CNMI promoted the use of alien workers 
throughout the private sector. In 1986, the Reagan 
Administration wrote to the Governor of the CNMI that, ``the 
tremendous growth in alien labor [is] . . . extremely 
disturbing,'' and warned, ``the uncontrolled influx of alien 
workers . . . can only result in increased social and cultural 
problems.'' The letter concluded, ``Without timely and 
effective action to reverse the current situation, I must 
consider proposing Congressional enactment of U.S. Immigration 
and Naturalization Service requirements for the NMI.''
    Nevertheless, the CNMI continued to promote the extensive 
use of imported labor which has caused several trends of 
continuing and growing concern to U.S. officials.
    First among these concerns has been the development of an 
unsustainable, two-tiered economy that is not creating private 
sector opportunities for local residents. By 2000, the private 
sector workforce in the CNMI was over 85 percent alien workers, 
the public sector workforce was nearly 85 percent U.S. 
citizens, and the unemployment rate among U.S. citizens was 11 
percent. In 1997, the U.S. Commission on Immigration Reform 
reported, ``The Marianas immigration system is antithetical to 
the principles that are at the core of the U.S. immigration 
system.'' In 2001, the Committee reported, ``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 U.S. residents in both 
entry and skilled positions.'' (Sen. Rpt. 107-28). The 
Committee's February 8, 2007 oversight hearing on conditions in 
the CNMI received testimony that increasing numbers of U.S. 
citizen families are emigrating to the U.S. seeking better 
opportunities.
    Second, has been the growing concern about ineffective 
immigration/border control and its consequences. In 1997, 
reports by the U.S. Immigration and Naturalization Service and 
by the bipartisan U.S. Commission on Immigration Reform found 
that the CNMI does not have, and never will have, the capacity 
to properly control its borders because border control requires 
sovereign authority to operate overseas consulates, issue 
visas, and have access to classified national and international 
watch lists. The U.S. Immigration and Naturalization Service 
reported, ``[There are] serious deficiencies in all facets of 
the Marianas' current system of immigration enforcement and 
control . . .'' and, ``There appears to be universal 
recognition amongst the Mariana Government Authorities that 
various organized crime groups, such as the Japanese Yakuza, 
the Chinese Triads, and the Russian Mafia have made inroads 
into the Marianas . . . Few of these persons are ever detected 
at the port-of-entry or apprehended while in the Marianas.'' 
The report recommended that Congress enact legislation to 
extend U.S. immigration laws. In 2001, the Committee found 
``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'' (Sen. 
Rpt. 107-28).
    Concerns regarding the increased security risks posed by 
ineffective border control have grown substantially following 
the attacks of September 11, 2001, and in light of the U.S. 
military's on-going buildup in nearby Guam.
    Third, there has been a persistent pattern of exploitation 
and mistreatment of aliens. Congress first responded to reports 
of worker abuse in 1994 by establishing the Joint Federal-CNMI 
Initiative on Labor, Immigration, and Law Enforcement. Under 
this Initiative, the U.S. Department of the Interior 
investigated and reported on the pattern of abuses including 
cheating on wages, unsafe working conditions, recruitment 
scams, and even coerced prostitution and abortion. However, the 
CNMI withdrew from the joint reform effort in 1997. There has 
been progress in addressing these problems through the Federal 
Government's unilateral establishment of a Labor Ombudsman as a 
part of the Initiative in 1999. The Ombudsman investigates 
complaints and advocates on behalf of workers. In 2006, the 
Labor Ombudsman reported to Congress, ``there are still a 
number of serious problems yet to be effectively addressed by 
local government officials: ensuring health and safety of alien 
workers, inadequate prevention efforts to curb abuses, delay in 
investigating and adjudicating worker complaints, . . . 
difficulty in rooting out corruption. . . . unwillingness to 
prosecute repeat offenders.'' Testimony at the Committee's 2007 
oversight hearing confirmed that these patterns persist.
    Fourth, the huge population growth resulting from local 
policies and practices has overwhelmed the infrastructure and 
contributed to significant socio-economic impacts. The 
population increased from 16,000 in 1976 to an estimated 80,000 
in 2005. The Interior Department reported that this growth, 
which includes both U.S. citizens and foreign guest workers, 
has had ``a profound negative effect on public services and 
infrastructure such as education, healthcare, public safety, 
water, sewer, and solid waste disposal'' (DOI Initiative 
Report, 1997). The Committee noted in its 2001 report that 
because most births were occurring to alien mothers, ``there is 
an increasing number of persons obtaining U.S. citizenship 
outside the boundaries of the U.S. immigration and 
naturalization law'' (Sen. Rpt. 107-28). In 1996, for example, 
there were 1,409 births to alien mothers out of a total of 
1,890 births. Some of these non-citizen mothers are married to 
CNMI residents, but most are not and all such children became 
U.S. citizens. This pattern, coupled with the emigration of 
U.S. citizens seeking better job opportunities, is changing the 
ethic composition of the community in contradiction of the 
original intent of granting local immigration control, which 
was to protect the indigenous Chamorro and Carolinian community 
by reducing the impact of immigrants.
    Elements of the CNMI's immigration policy are also simply 
inconsistent with Federal policies. Among these is the Federal 
policy that persons admitted into the U.S. to fill permanent 
jobs do so as immigrants with the ability to become U.S. 
citizens and full participants in the political process. Also, 
the lack of Federal immigration jurisdiction in the CNMI has 
hindered enforcement of Federal requirements under 
international agreements such as the treatment of persons 
seeking asylum or protection from torture. At the February 8, 
2007 hearing, the Committee heard of the Administration's 
serious concerns regarding the CNMI's performance in meeting 
these international obligations.
    As a general policy, federal laws should apply in the 
territories as in the rest of the U.S., but with modifications 
that take into account the particular circumstances of each of 
the territories. That was the Committee expectation when it 
approved the Covenant which specifically granted the U.S. the 
right to extend its immigration laws. Immigration is an 
inherently sovereign function and U.S. immigration laws should 
be extended to the CNMI with a smooth transition, and with the 
special provisions needed to mitigate adverse effects and to 
encourage diversification and growth of the local economy.
    The Committee has on three occasions reported legislation 
to extend U.S. immigration laws. For further description of the 
background and need for this legislation see the legislative 
reports on those prior bills: Senate Reports 105-210, 106-204, 
and 107-28.

                          Legislative History

    H.R. 3079 is based on S. 1052, in the 106th Congress, 
legislation reported by the Committee, and later passed 
unanimously by the Senate on February 7, 2000. It was then 
referred to the Committee on Resources of the House of 
Representatives, but no further action was taken. On March 20, 
2007, the Committee requested that the Administration modify 
the text of S. 507, from the 107th Congress, which was 
identical to Senate-passed S. 1052, to reflect the passage of 
time, and to incorporate the views presented by the 
Administration and the Resident Representative of the CNMI, 
Pedro A. Tenorio, in their testimony at the Committee's 
February 8, 2007 oversight hearing (S. Hrg. 110-50). That 
revised text was received by the Committee on May 11, 2007 and 
was introduced as S. 1634 on June 15, 2007. A legislative 
hearing was held on July 19, 2007 (S. Hrg. 110-164). Following 
that hearing, the Committee requested further Administration 
revision to reflect the Administration's testimony. That new 
draft was received by the Committee on September 11, 2007 and 
was also made available to the House Committee on Natural 
Resources. On December 11, 2007, the House of Representatives 
passed H.R. 3079 and it was referred to the Committee on 
December 12, 2007.
    At the business meeting on January 30, 2008, the Committee 
on Energy and Natural Resources ordered H.R. 3079 favorably 
reported.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on January 30, 2008, by a unanimous voice vote 
of a quorum present, recommends that the Senate pass H.R. 3079, 
as described herein.

                      Section-by-Section Analysis

TITLE I--NORTHERN MARIANA ISLANDS IMMIGRATION, SECURITY, AND LABOR ACT.

    Section 101 provides that Title I of S. 1634 as the ``The 
Northern Mariana Islands Immigration, Security, and Labor 
Act.''
    Section 102(a) expresses Congressional intent to ensure 
effective border control and security by extending the INA with 
special provisions for: phasing out contract workers; 
minimizing adverse economic effects; recognizing local self-
government; assisting the development of the CNMI economy; 
providing opportunities for locals to work; providing for the 
continued use of alien workers as necessary; and protecting 
workers from abuse.
    Section 102(b) states that, in recognition of the CNMI's 
unique circumstances, it be given flexibility to maintain and 
develop businesses and that the Government of the CNMI is fully 
involved in the implementation process.
    Section 103(a) amends the Covenant Act (P.L. 94-241) by 
adding a new Section 6, with new subsections (a) through (h) 
which would extend the immigration laws of the U.S. to the CNMI 
along with several special provisions to meet the special needs 
of the CNMI. It is intended that the immigration laws of the 
U.S. will apply to the CNMI, except as otherwise provided in 
this Title. Some of these exceptions, such as the Commonwealth 
Only Transitional Worker Program are temporary and are intended 
to smooth the transition from CNMI immigration law to U.S. 
immigration law. Other exceptions, such as the Guam/CNMI visa 
waiver program, are intended to be permanent modifications in 
the applicability of U.S. immigration law in the islands. This 
means, in some cases there will be two similar programs 
operating in the CNMI. For example, this Act would permit 
nonimmigrant workers to enter the CNMI under the Commonwealth 
Only Transitional Workers Program established under section 
103(a) of H.R. 3079, but the extension of U.S. immigration laws 
would also provide, indefinitely, for the entry of nonimmigrant 
workers into the CNMI under section 101(a)(15)(H) of the INA, 
the called ``H-visa'' program.
    Subsection (a) requires regulations and interagency 
agreement to establish and implement the extendable, five-year 
transition period. It further states that non-immigrant workers 
in the CNMI and Guam will not count against the numerical 
limitations set forth in section 214(g) of the INA. The 
Committee notes that this waiver is necessary to help meet the 
anticipated labor demands of the planned U.S. military buildup 
in Guam and the CNMI, and the Committee intends that this 
waiver of the numerical limitations for Guam and the CNMI is 
extended along with any extension of the five-year transition 
period.
    Subsection (a) further provides DHS with the authority to 
classify an alien as a nonimmigrant treaty trader if: the alien 
was admitted to the CNMI as an investor before the transition 
program effective date; has continuously maintained residence 
in the CNMI under investor status; is otherwise admissible; and 
maintains the investment that formed the basis for the status. 
Because this authority will end at the end of the transition 
period, the Committee intends that the President and Government 
Accountability Office (GAO) will make recommendations regarding 
the post-transition period status of these investors in the 
reports to Congress to be made pursuant to Section 103(h).
    The subsection further provides for a CNMI-Only 
Transitional Worker Program which would be established, 
administered, and enforced by DHS. The Secretaries of Labor, 
Homeland Security, and State would be able to extend the 
transition period for additional five year periods. It is 
important to note that the transition period covers several 
policies and programs and is not limited to the Commonwealth 
Only Transitional Workers Program. For example, the 
transitional program also covers the Guam/CNMI waiver on 
numerical limitations on the INA H-visa program.
    The Senate companion measure to H.R. 3079, S. 1634, and all 
previous CNMI reform bills considered by the Committee provided 
for a ten year transition period. It is most unlikely that the 
CNMI will be able to meet its labor needs and forego the 
Transitional Workers Program in five years. It is expected that 
there will be at least one, and probably more than one, five-
year extension.
    It is intended that nonimmigrant workers will be able to 
enter the CNMI under the INA, and under the CNMI-Only 
Transitional Worker Program. While the CNMI-Only Transitional 
Worker Program is to be phased out at the end of the extendable 
five-year transition program, nonimmigrant workers will 
continue to be able to enter the CNMI pursuant to the INA.
    The subsection states that any alien present in the CNMI, 
at the start of the transition program effective date may 
remain in the CNMI and is considered authorized for employment. 
The CNMI government is required to provide all immigration 
records. The Secretary of Homeland Security may execute any 
U.S. or CNMI final order or exclusion, deportation or removal 
before, on or after the transition effective date.
    Subsection (a) further states that upon the transition 
effective date, the provisions of this section and the INA 
shall supersede all laws of the CNMI relating to the admission 
and removal of aliens, and states that no time that an alien is 
in the CNMI in violation of CNMI law shall be counted as 
grounds of inadmissibility under the INA.
    The subsection would require the Administration, in 
consultation with the CNMI, to report to Congress, no later 
than the second year after enactment on the population of 
aliens, status of aliens under federal law, future requirements 
of the CNMI for an alien workforce, and recommendations on 
whether Congress should consider permitting such workers long-
term status under the INA. The Committee encourages the DHS, 
and all other Federal agencies involved in implementing the 
transition program period, to keep the costs associated with 
the transition program period on employers and non-immigrant 
guest workers at the same level as is currently being assessed 
by the CNMI government under local law.
    Subsection 103(b) would expand the existing Guam Visa Waver 
Program to include the CNMI. DHS, State, and DOI, acting 
jointly, may waive the requirement for a visa for aliens 
applying to enter Guam and the CNMI for business or pleasure 
for a period not to exceed 45 days if it is determined that an 
adequate arrival and departure system has been developed, and 
such a waiver does not represent a threat to the United States 
and its territories.
    DHS shall, in consultation with State and DOI, promulgate 
all necessary regulations within 180 days of enactment and 
shall include a list of all participating nations, and any 
bonding requirements, if different than those otherwise 
provided. The regulations should include countries for which 
the CNMI has received a significant economic benefit from the 
number of visitors for pleasure within the one-year period 
preceding the date of enactment. In drafting such regulations, 
the Committee encourages DHS to consult with the CNMI tourism 
industry to determine which tourists markets have contributed 
to the benefit of the CNMI economy and that such benefit can be 
measured in terms of hotel occupancy, length of stay, and 
expenditures.
    Section 103(c) would allow the Governors of Guam and the 
CNMI to request DHS to create additional Guam or CNMI-only 
nonimmigrant visa categories if the ones provided for do not 
meet other circumstances.
    Section 103(d) would amend section 212(d)(7) of the INA to 
provide that persons seeking entry into the U.S. from the CNMI 
shall be processed using the existing INA authority regarding 
entry from Guam, Puerto Rico, and the USVI, and that any such 
person denied admission to the U.S. shall be immediately 
removed.
    Section 103(e) directs the Secretary of the Interior, in 
consultation with the CNMI and the Secretaries of Labor and 
Commerce, to provide technical assistance. Such technical 
assistance should assist in identifying opportunities for 
diversification and growth of the CNMI economy, and for 
recruiting, training, and hiring workers first from among U.S. 
citizens and national residents in the CNMI, and then from 
among work-authorized aliens including FAS citizens. They shall 
assist in identifying jobs needed and develop curricula for 
identified job skills that are needed. Assistance grants by 
DOI, except for federal salaries, shall require a non-federal 
match of 10 percent.
    Section 103(f) authorizes the Attorney General and the 
Secretaries of DHS and Labor to establish and maintain offices 
within the CNMI to carry out their duties under this Act and 
under the immigration laws of the U.S., and shall, to the 
maximum extent practicable, recruit and hire personnel from 
among qualified U.S. citizen and national applicants residing 
in the CNMI.
    Section 103(g) states that amendments made will take effect 
on the first full month one year after the enactment of this 
Act.
    Section 103(h) requires reports to Congress from the 
President and the Government Accountability Office. It 
authorizes the CNMI government to submit reports to the 
President with its recommendations for future changes, and 
requires that the President forward the CNMI's reports to the 
Congress with Administration comments.
    Section 103(i) would require that the CNMI government not 
permit an increase in the number of alien workers in the CNMI 
as of the date of enactment, and shall administer its non-
refoulement protection program in accordance with its September 
12, 2003 agreement with DOI.
    Section 103(j) provides conforming amendments to the 
Immigration and Naturalization Act.
    Section 103(k) provides an exemption for Guam, the CNMI, 
and the Virgin Islands for access to other nonimmigrant 
professionals.
    Section 104 rescinds $200,000 in fiscal year 2009, and 
$225,000 annually for fiscal years 2010 to 2018, from the U.S. 
payments to the CNMI as required under section 702 of P.L. 94-
241, in order to offset the direct spending impact of Title II 
of this bill.
    Section 105 authorizes such sums as may be necessary to 
carry out this Act.
    Section 106 provides, generally, that this Act shall take 
effect on the date of enactment, but that amendments to the INA 
shall take effect upon the transition program effective date, 
unless specifically provided otherwise.

            TITLE II--NORTHERN MARIANA ISLANDS DELEGATE ACT

    Section 201 designates Title II of S. 1634 as the `Northern 
Mariana Islands Delegate Act.'
    Section 202 states that Section 901 of Public Law 94-241 
authorizes the Resident Representative position and that this 
person shall be a nonvoting Delegate to the U.S. House of 
Representatives.
    Section 203 provides for the manner in which the CNMI non-
voting Delegate shall be elected, beginning with the federal 
general election of 2008. The CNMI government is authorized to 
provide for primary elections. In the case of a vacancy, the 
office of the Delegate shall remain vacant until a successor is 
elected and qualified.
    Section 204 delineates criteria for candidate eligibility, 
consistent with local CNMI law.
    Section 205 clarifies which powers within the election 
framework remain within CNMI control, continuing matters of 
local application.
    Section 206 states that all the current Rules of the House 
of Representatives pertaining to Members of Congress, including 
compensation, privileges, and immunities, shall apply to the 
nonvoting delegate created in the legislation.
    Section 207 clarifies that the powers enumerated in the 
Covenant remain.
    Section 208 defines `Delegate' as the Resident 
Representative mentioned in section 202.
    Section 209 makes conforming amendments regarding 
appointments to military service academies by the delegate from 
the CNMI.

                   Cost and Budgetary Considerations

H.R. 3079--Northern Mariana Islands Immigration, Security, and Labor 
        Act

    Summary: H.R. 3079 would amend the current law that governs 
the relationship between the United States and the Commonwealth 
of the Northern Mariana Islands (CNMI), a territory of the 
United States, to reform the immigration laws of CNMI. In 
addition, the act would provide Congressional representation 
for CNMI by creating a nonvoting delegate in the House of 
Representatives beginning in January 2009. CBO estimates that 
implementing H.R. 3079 would result in additional discretionary 
outlays of $12 million over the 2008-2013 period, assuming 
appropriation of the necessary amounts.
    Enacting H.R. 3079 also would increase direct spending for 
payment of the salary of the new nonvoting delegate and the 
costs of associated benefits. In addition, the legislation 
would reduce direct spending by cutting certain payments to 
CNMI. CBO estimates that those provisions would result in no 
significant net effect on direct spending in any fiscal year 
over the 2009-2018 period. H.R. 3079 could affect revenues, but 
CBO estimates that any net changes in revenues would be 
insignificant in each year.
    H.R. 3079 contains intergovernmental mandates, as defined 
in the Unfunded Mandates Reform Act (UMRA), because it would 
preempt the immigration laws of CNMI and require that 
government to comply with additional federal requirements. CBO 
estimates that the direct costs of those mandates would be 
small and would not exceed the threshold established in UMRA 
($68 million in 2008, adjusted annually for inflation).
    By modifying the laws that govern immigration in CNMI, H.R. 
3079 would impose private-sector mandates, as defined in UMRA, 
on employers and temporary alien workers in CNMI. The cost to 
comply with those mandates would depend in part on regulations 
to be developed by the Secretary under the act. Therefore, CBO 
cannot determine whether the aggregate cost of those mandates 
would exceed the annual threshold established in UMRA for 
private-sector mandates ($136 million in 2008, adjusted 
annually for inflation).
    Major Provisions: H.R. 3079 would require the Department of 
Homeland Security (DHS) to develop a program to phase in the 
Immigration and Nationality Act, as modified by H.R. 3079, for 
CNMI. The transition period would begin approximately one year 
from the date of enactment of the legislation and would end on 
December 31, 2013. The program would include procedures for 
issuing visas to certain alien workers and investors, family-
sponsored immigrants, and employment-based immigrants.
    The act would authorize the Department of State to issue 
nonimmigrant visas to admit temporary alien workers to CNMI. 
For temporary alien workers who would not otherwise be eligible 
for admission into CNMI, H.R. 3079 would require that DHS 
establish and administer a system for issuing a decreasing 
number of annual permits to employers allowing them to hire 
such individuals during the transition period.
    H.R. 3079 also would provide Congressional representation 
for CNMI by creating a position for a nonvoting delegate in the 
House of Representatives beginning in January 2009. Under 
current law, the Commonwealth of the Northern Mariana Islands 
elects' a Resident Representative, who represents the CNMI 
government in the United States but has no official status in 
the Congress. As a nonvoting Member, the delegate would have 
some of the same powers of a full-fledged Member, including the 
ability to introduce bills, offer amendments, and vote in House 
committees, but would not be able to vote on the floor of the 
House. In addition, the delegate would receive the same 
compensation, allowances, and benefits as a Member.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the act is shown in the following table. 
The costs of this legislation fall within budget functions 150 
(international affairs), 750 (administration of justice), and 
800 (general government).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                     -----------------------------------------------------------
                                                        2008      2009      2010      2011      2012      2013
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATIONEstimated Authorization Level.......................         4        12        10         2         0         0
Estimated Outlays...................................         3         9        14         2         0         0
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: CBO estimates that implementing H.R. 
3079 would increase discretionary spending by $12 million over 
the 2008-2013 period, assuming appropriation of the necessary 
amounts. In addition, we estimate that enactment of H.R. 3079 
would have no significant net effect on direct spending in any 
fiscal year over the 2009-2018 period.

Spending subject to appropriation

    This estimate assumes that the act will be enacted in 2008 
and that the necessary amounts will be appropriated for each 
year, including supplemental appropriations for 2008.
    Support Costs for New Delegate. Based on the current 
administrative and expense allowances available for Members of 
the Congress and other typical office costs, CBO estimates that 
the addition of a new nonvoting delegate would cost about $1 
million in fiscal year 2009 and about $9 million over the 2009-
2013 period, subject to the availability of appropriated funds.
    Department of Homeland Security. Implementing H.R. 3079 
would require DHS to establish a system to carry out 
immigration adjudications, inspections, and related activities 
in CNMI. We expect that by 2010 the department would cover its 
costs by collecting fees from applicants for visas. Based on 
information from DHS, we estimate that the department would 
need an appropriation of about $3 million for start-up costs in 
2008, including information technology systems, facilities, and 
other infrastructure, and for relocating and training 
personnel.

Direct spending and receipts

    Enacting H.R. 3079 would increase direct spending for 
paying the salary of the new nonvoting delegate and the costs 
of associated benefits. CBO estimates that the increase in 
direct spending for Congressional salaries and benefits would 
be about $3 million over the 2009-2018 period. That estimate 
assumes that the current Congressional salary of $169,300 a 
year would be adjusted for inflation in future years. In 
addition, H.R. 3079 would amend the current law that governs 
the relationship between the United States and CNMI. 
Specifically, the legislation would rescind about $200,000 
annually, with increases for inflation, from payments made by 
the United States to CNMI. CBO estimates that together those 
provisions would result in no net effect on direct spending in 
any fiscal year over the 2009-2018 period.
    Enacting H.R. 3079 would increase collections of 
immigration fees by DHS beginning in fiscal year 2009. Because 
DHS could spend such collections without further appropriation, 
the provision would have no significant net impact on direct 
spending.
    The Department of State also would collect certain fees for 
immigrant and nonimmigrant visas, but we estimate that such 
collections would be offset by higher spending on consular 
programs and also would have a negligible net effect on direct 
spending.
    Estimated impact on state, local, and tribal governments: 
H.R. 3079 contains several intergovernmental mandates as 
defined in UMRA. The act would amend the covenant between the 
United States and the CNMI to apply federal immigration laws to 
the commonwealth. Current law preserves CNMI's authority to 
administer its own immigration policies, so the preemption 
would be a mandate as defined in UMRA. The act also would 
require CNMI to enforce a cap on the number of alien workers 
until the preemption goes into effect, provide certain 
information to DHS, and operate its refugee program in 
compliance with an expired agreement with the Department of the 
Interior. CBO estimates that the preemption of local 
immigration laws would impose no costs on the CNMI government; 
the other requirements would not result in a significant 
increase in the workload of the commonwealth's immigration 
staff. The total cost of complying with the mandates in the act 
would be below the threshold established in UMRA ($68 million 
in 2008, adjusted annually for inflation).
    The act would authorize CNMI to be represented in the U.S. 
Congress by CNMI's Resident Representative. If CNMI chooses to 
select a delegate, it would have to hold biennial elections in 
even-numbered years. (All CNMI elections now take place in odd-
numbered years.) Based on information provided by CNMI 
officials, CBO estimates that the cost of each election would 
be about $25,000. CNMI would save substantially more than that, 
however, because it would no longer pay for a Resident 
Representative in Washington, D.C., once a delegate is elected 
and in place. The expenses of the delegate's office would be 
paid by the federal government.
    Estimated impact on the private sector: H.R. 3079 would 
impose private-sector mandates on employers in CNMI by 
restricting the number of permits allocated for temporary alien 
workers and charging an annual fee for those permits. It also 
would impose a private-sector mandate on some aliens lawfully 
residing or working in CNMI by requiring them to leave the 
islands before the end of the term for which they were 
authorized to stay or work. Under the act, no alien lawfully 
admitted into CNMI would be allowed to stay for more than two 
years after commencement of the transition period, even if they 
were authorized to remain for a longer period of time. Finally, 
the act could impose additional private-sector mandates as a 
result of regulations that would be established by the 
Secretary to implement the new immigration system.
    The cost to comply with those mandates would depend in part 
on regulations to be developed by the Secretary under the act 
and how those regulations affect the labor supply in CNMI. 
Therefore, CBO cannot determine whether the aggregate cost of 
those mandates would exceed the annual threshold established in 
UMRA for private-sector mandates ($ 136 million in 2008, 
adjusted annually for inflation).
    Previous CBO estimate: On December 3, 2007, CBO transmitted 
a cost estimate for H.R. 3079 as ordered reported by the House 
Committee on Natural Resources on November 7, 2007. Both pieces 
of legislation would reform the immigration laws of CNMI and 
provide a nonvoting delegate from CNMI to the House of 
Representatives. However, they have different provisions 
regarding payments by the United States to CNMI. The cost 
estimates reflect those differences.
    The private-sector mandates in the two bills are nearly 
identical, except that the House-reported version does not 
contain the mandate that would require employers in CNMI to pay 
an annual fee for permits. The aggregate cost of the mandates 
in both bills would depend on future regulations.
    Estimate prepared by: Federal Spending: DHS--Mark 
Grabowicz, CNMI Representative--Matthew Pickford, State 
Department--Sunita D'Monte; Impact on State, Local, and Tribal 
Governments: Elizabeth Cove and Melissa Merrell; Impact on the 
private sector: MarDestinee C. Perez.
    Estimate 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 H.R. 3079. The bill would establish several new 
CNMI-only programs that are intended to mitigate the impact of 
the extension of U.S. immigration laws to the CNMI, and provide 
for a Delegate to the U.S. House of Representatives. These new 
programs include a transitional guest worker program, the 
granting of U.S. nonimmigrant status for certain alien 
investors who currently reside in the CNMI, and a visa-waiver 
program to facilitate travel to the CNMI by tourists and other 
visitors. There will necessarily be new regulations, paperwork, 
and the gathering of personal data to establish and operate 
these new programs. In some cases, such as the guest worker 
program, the effort is transitional and the program will be 
phased-out at the end of the transition period established in 
the bill. In other cases, such as the visa waiver program, the 
provisions are expected to be permanent, but operations are to 
be largely integrated into the operation of the national 
program of the same intent in order to increase efficiency and 
reduce unnecessary duplication of effort.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the July 19th hearing on S. 1634, the Senate companion measure 
to H.R. 3079, follows:

   Prepared Statement of David B. Cohen, Deputy Assistant Secretary, 
              Insular Affairs, Department of the Interior

    Mr. Chairman and members of the Committee, thank you for 
the opportunity to testify on S. 1634, the Northern Mariana 
Islands Covenant Implementation Act. I come before you today 
wearing at least two hats: As Deputy Assistant Secretary of the 
Interior for Insular Affairs, I am the Federal official that is 
responsible for generally administering, on behalf of the 
Secretary of the Interior, the Federal Government's 
relationship with the Commonwealth of the Northern Mariana 
Islands (CNMI). I also serve as the President's Special 
Representative for consultations with the CNMI on any matter of 
mutual concern, pursuant to Section 902 of the U.S. CNMI 
Covenant. In fact, I was in Saipan in March for Section 902 
consultations with CNMI Governor Fitial and his team. I was 
also in Saipan in June with Secretary Kempthorne as part of his 
visit to U.S.-affiliated Pacific Island communities.
    Under the Covenant through which the CNMI joined the U.S. 
in 1976, the CNMI was exempted from most provisions of U.S. 
immigration laws and allowed to control its own immigration. 
However, section 503 of the Covenant to Establish a 
Commonwealth of the Northern Mariana Islands in Political Union 
with the United States of America (P.L. 94-241) explicitly 
provides that Congress has the authority to make immigration 
and naturalization laws applicable to the CNMI. Through the 
bill that we are discussing today, Congress is proposing to 
take this legislative step to bring the immigration system of 
the CNMI under Federal administration. We believe that any 
federalization of the CNMI's immigration system must be 
flexible because of the CNMI's unique history, culture, status, 
demographic situation, location, and, perhaps most importantly, 
fragile economic and fiscal condition. Additionally, we would 
need appropriate time to address a range of implementation 
issues as there are a number of Federal agencies that would be 
involved with federalization. In testimony before this 
Committee earlier this year, I offered, on behalf of the 
Administration, five principles that we believe should guide 
the development of any federalization legislation.
    In previous testimony before this Committee and others, I 
have described at length the impressive amount of progress that 
the CNMI has made to improve working conditions there since the 
1990s. As I have said repeatedly, the CNMI should be 
congratulated for this progress. We do not believe that the 
CNMI gets the credit that it deserves for the progress that it 
has made. However, serious problems continue to plague the 
CNMI's administration of its immigration system, and we remain 
concerned that the CNMI's rapidly deteriorating fiscal 
situation may make it even more difficult for the CNMI 
government to devote the resources necessary to effectively 
administer its immigration system and to properly investigate 
and prosecute labor abuse. I will begin my statement with an 
overview of concerns that make a compelling case for 
federalization.

                need for an effective screening process

    The CNMI is hampered by the lack of an effective pre-
screening process for aliens wishing to enter the Commonwealth. 
Under the Immigration and Nationality Act (INA), before 
traveling to the continental United States, aliens must obtain 
a visa from a U.S. consular officer abroad unless they are 
eligible under the Visa Waiver Program or other legal authority 
for admission without a visa. Carriers are subject to 
substantial fines if they board passengers bound for these 
parts of the United States who lack visas or other proper 
documentation. All visa applicants are checked against the 
Department of State's name-checking system, the Consular 
Lookout and Support System (CLASS). With limited exceptions, 
all applicants are interviewed and subjected to fingerprint 
checks. After obtaining a visa, an alien seeking entry to these 
parts of the United States must then apply for admission to an 
immigration officer at a U.S. port of entry. The immigration 
officer is responsible for determining whether the alien is 
admissible, and in order to do so, the officer is supposed to 
consult appropriate databases to identify individuals who, 
among other things, have criminal records or may be a danger to 
the security of the United States. The CNMI does not issue 
visas, conduct interviews or check finger prints for those 
wishing to travel to the CNMI, nor does the CNMI have an 
equivalent to CLASS. Furthermore, CNMI immigration inspectors 
determine admissibility under CNMI law rather than federal law. 
The CNMI does have its own sophisticated computerized system 
for keeping track of aliens who enter and leave the 
Commonwealth. A record of all persons entering the CNMI is made 
with the Commonwealth's Labor & Immigration Identification and 
Documentation System, which is state-of-the-art. However, that 
is not a substitute for comprehensive pre-screening by Federal 
government authorities. In a post-9/11 environment, and given 
the CNMI's location and the number of aliens that travel there, 
we believe that continued local control of the CNMI's 
immigration system presents significant national security and 
homeland security concerns.

                           human trafficking

    While we congratulate the CNMI for its recent successful 
prosecution of a case in which foreign women were pressured 
into prostitution, human trafficking remains far more prevalent 
in the CNMI than it is in the rest of the U.S. During the 
twelve-month period ending on April 30, 2007, 36 female victims 
of human trafficking were admitted to or otherwise served by 
Guma' Esperansa, a women's shelter operated by a Catholic 
nonprofit organization. All of these victims were in the sex 
trade. Secretary Kempthorne personally visited the shelter and 
met with a number of women from the Philippines who were 
underage when they were trafficked into the CNMI for the sex 
industry. As you can imagine, he found their stories 
heartbreaking. The State Department estimates that a total of 
between 14,500 and 17,500 victims are trafficked into the U.S. 
each year from many places in the world. This estimate includes 
not only women in the sex trade, but men, women and children 
trafficked for all purposes, including labor. Assuming a CNMI 
population of roughly 70,000 and a U.S. population of roughly 
300 million, the numbers above suggest that human trafficking 
is between 8.8 and 10.6 times more prevalent in the CNMI than 
it is in the U.S. as a whole. This is a conservative 
calculation that most likely makes the CNMI look better than it 
actually is: The number of victims counted for the CNMI 
includes only actual female victims in the sex trade who were 
served by Guma' Esperansa. This is being compared with a U.S. 
estimate of human trafficking victims of both genders that is 
not limited to the sex trade. In an apples-to-apples 
comparison, the CNMI's report card would be worse. We note that 
most of the victims that have been served by Guma' Esperansa 
were referred by the CNMI government (as a result of referrals 
from the Federal Ombudsman to local authorities). However, it 
is clear that local control over CNMI immigration has resulted 
in a human trafficking problem that is proportionally much 
greater than the problem in the rest of the U.S.
    A number of foreign nationals have come to the Federal 
Ombudsman's office complaining that they were promised a job in 
the CNMI after paying a recruiter thousands of dollars to come 
there, only to find, upon arrival in the CNMI, that there was 
no job. Secretary Kempthorne met personally with a young lady 
from China who was the victim of such a scam and who was 
pressured to become a prostitute; she was able to report her 
situation and obtain help in the Federal Ombudsman's office. We 
believe that steps need to be taken to protect women from such 
terrible predicaments.
    We are also concerned about recent attempts to smuggle 
foreign nationals, in particular Chinese nationals, from the 
CNMI into Guam by boat. A woman was recently sentenced to five 
years in prison for attempting to smuggle over 30 Chinese 
nationals from the CNMI into Guam. With the planned military 
buildup in Guam, the potential for smuggling aliens from the 
CNMI into Guam by boat is a cause for concern.

                           refugee protection

    We have very serious concerns about the CNMI government's 
administration of its refugee protection system, which was 
established pursuant to a Memorandum of Agreement signed by 
former Governor Juan Babauta and me in 2003 with the financial 
support of the Office of Insular Affairs. Establishing a 
refugee protection system in the CNMI was important to the U.S. 
because of our concerns regarding U.S. compliance with 
international treaties to which the U.S. is a party, including 
the 1967 United Nations Protocol Relating to the Status of 
Refugees and the Convention Against Torture and Other Cruel, 
Inhuman or Degrading Treatment or Punishment. Even though the 
CNMI for the most part is not included in the Immigration and 
Nationality Act, the U.S. is obligated to ensure that aliens in 
the CNMI are not returned to their home countries if there is a 
sufficient risk under the Convention Against Torture or the 
Refugee Protocol that they will be tortured or persecuted 
there.
    Under the Memorandum of Agreement, the CNMI has established 
its own refugee protection system with the assistance of U.S. 
Citizenship and Immigration Services (USCIS) acting as 
``Protection Consultant.'' In this role, USCIS assisted the 
Commonwealth in drafting regulations and forms, trained all 
staff for the program, provided quality assurance review prior 
to a decision on all cases, and performed background checks on 
all applicants. The two-year performance period during which 
the duties of the Protection Consultant were enumerated in the 
Memorandum of Agreement terminated in September 2006. USCIS and 
the CNMI have yet to enter into a subsequent instrument to 
delineate the assistance that USCIS has offered to provide to 
the CNMI, because of lack of response by the CNMI to USCIS's 
requests for cooperation.
    Most recently, the Chief of the Asylum Division, U.S. 
Citizenship and Immigration Services, Department of Homeland 
Security, inquired about a group of cases which were of concern 
to the U.S. Government due to evidence of efforts by a foreign 
government to improperly interfere in those cases.
    Astonishingly, the CNMI Attorney General refused requested 
information and accused the Department of Homeland Security and 
the Department of State of attempting to ``unbalance the scales 
of justice'' by inquiring about these cases and by expressing 
concerns about evidence of foreign attempts at interference.
    The CNMI Attorney General's failure to distinguish between 
possible foreign attempts to improperly influence a refugee 
protection proceeding within the U.S. and attempts by the 
relevant U.S. agencies to monitor and protect the integrity of 
a refugee protection program which impacts U.S. compliance with 
its international obligations raises serious doubts about the 
CNMI's capacity to adequately carry out the refugee protection 
program. It is particularly troubling that such a posture is 
being taken by the CNMI Attorney General, the official who 
ultimately supervises the refugee protection hearing officers 
and to whom refugee protection decisions are appealed. With 
this uncooperative stance from the CNMI, there is no way for 
the Federal Government to address its very serious concerns and 
confirm that the U.S. remains in compliance with important 
international treaty obligations. The concerns that we have 
about the CNMI Attorney General's letter are very serious and 
would not be mitigated if the CNMI were to issue decisions in 
the pending cases that the U.S. Department of Homeland Security 
found to be appropriate given the facts and applicable law.
    The circumstances described above present the Federal 
Government with a dilemma: If the Federal Government cannot 
verify that the CNMI is administering its refugee protection 
program in a manner that accords with U.S. compliance with 
international treaty obligations, then extending the 
protections available under U.S. immigration law to cover 
aliens in the CNMI may be the only way to ensure that 
compliance. However, making aliens in the CNMI eligible to 
apply for protection in the U.S. is a potentially serious 
problem if the CNMI maintains control over its immigration 
system and continues to determine which aliens, and how many, 
are able to enter the CNMI. Under that scenario, the U.S. could 
be required to provide refugee protection to aliens who have 
been admitted to the CNMI through a process controlled not by 
the Federal Government, but by the CNMI. The U.S. would be 
subjecting itself to potential costs and other consequences for 
decisions made by the CNMI. This is a strong argument in favor 
of Congress taking legislative action, as contemplated under 
Section 503 of the Covenant (P.L. 94-241), to take control of 
the CNMI's immigration system.

                    recommended changes to this bill

    The above are some of the factors that have led us to 
conclude that the CNMI's immigration system must be federalized 
as soon as possible. We believe that S. 1634 is generally sound 
legislation that embodies the concept of ``Flexible 
Federalization''--that is, federalization of the CNMI's 
immigration system in a manner designed to minimize damage to 
the CNMI's fragile economy and maximize the potential for 
economic growth. We also believe that S. 1634 reflects the 
principles previously spelled out by the Administration as 
those that should guide the federalization of the CNMI's 
immigration system. Therefore, the Administration supports the 
Northern Marianas Covenant Implementation Act, subject to the 
following:
     Long-term Status to Temporary Workers.--At this 
time, the Administration is evaluating the specific provisions 
granting long-term status to temporary workers in the CNMI in 
light of the Administration's immigration policies. We look 
forward to working with Congress on this important issue.
     Protection from Persecution and Torture.--
Consistent with the general transfer of immigration to Federal 
control on the transition period effective date, the bill 
should clarify that U.S. protection law, including withholding 
of removal on the basis of persecution or torture, would apply 
and be administered by Federal authorities beginning on the 
transition period effective date. However, given the 
uncertainties inherent in changing the CNMI immigration 
regimen, we recommend that extension of the affirmative asylum 
process under section 208 of the INA to the CNMI be delayed 
until the end of the transition period. We would also recommend 
a provision requiring the CNMI to maintain an effective 
protection program between date of enactment and the transition 
period effective date.
     Authority of the Secretary of Homeland Security.--
In general, it is important that the Secretary of Homeland 
Security have sufficient authority and resources to effectively 
administer the new responsibilities that would be undertaken 
under the bill. Improvements to the bill in this regard would 
include ensuring that the Secretary has full authority in his 
discretion to designate countries for the new CNMI visa waiver 
program (giving due consideration to all current CNMI tourist 
source countries); and providing the necessary fiscal and 
operational authority to conduct all necessary activities in 
the CNMI.
     Visa Waiver.--As noted above, it is essential that 
the Secretary of Homeland Security, in consultation with the 
Secretary of State, have full authority to make visa waiver 
decisions in the national interest We would also recommend 
consideration of authorizing integration of the proposed CNMI 
visa waiver with the Guam visa waiver program as a possible 
means of increasing the value of these programs to those 
jurisdictions, such as, for example, allowing visitors 
qualifying for both programs a combined 30 days, with a maximum 
stay of 21 days in either territory.
     Employment-Based Visas.--The bill would authorize 
the Secretary of Homeland Security to establish a specific 
number of employment-based visas that will not count against 
the numerical limitations under the Permanent Alien Labor 
Certification (PERM) program, if the Secretary of Labor, after 
consultation with the Governor of the Commonwealth and the 
Secretary of Homeland Security, finds exceptional circumstances 
with respect to the inability of employers to obtain sufficient 
work-authorized labor. We would recommend that this provision 
be removed from the bill as unnecessary because the CNMI will 
have an uncapped temporary worker program in the 10-year 
transition period.
     Conforming and Technical Amendments.--We would 
like to work with Congress on a number of other conforming, 
technical and other amendments necessary to fully effectuate 
the transfer of responsibilities and effectively administer and 
integrate the CNMI-specific programs with the INA. For example, 
the CNMI should be added to the definitions of ``State'' and 
``United States'' in section 101 of the INA.

                               conclusion

    We point out, however, that one of this Administration's 
principles for considering immigration legislation for the CNMI 
is that such legislation should be carefully analyzed for its 
likely impact in the CNMI before we implement it. We have also 
urged that such analysis occur expeditiously: the need to study 
must not be used as an excuse to delay. We understand that the 
Senate has requested an analysis of the provisions of S. 1634. 
We applaud the Senate for taking this step, and urge Congress 
to carefully consider the results of this analysis in the 
continued development of this legislation.
    It is important to remember that S. 1634 deals with a 
unique situation, and hence does not establish any precedents 
that are relevant to the discussion of national immigration 
reform. S. 1634 is designed to bring under the ambit of Federal 
immigration law a territory that generally was not previously 
subject to Federal immigration law. Accomplishing this 
transition without causing severe economic disruption requires 
special transitional provisions that take into account the 
reality that CNMI society has been shaped by immigration 
policies that vary significantly from Federal immigration 
policy. Because CNMI society has evolved in a unique manner 
under unique circumstances, it would not be prudent to apply 
immigration policy designed for the 50 states to the CNMI in a 
blanket fashion with no transition mechanisms. The special 
transitional provisions contained in this bill are designed to 
move CNMI society from one set of governing principles to 
another in a manner that minimizes harm to CNMI residents.
    Finally, Mr. Chairman, we again point out that the people 
of the CNMI must participate fully in decisions that will 
affect their future. As I have said in the past, a better 
future for the people of the CNMI cannot be imposed 
unilaterally from Washington, DC, ignoring the insights, wisdom 
and aspirations of those to whom this future belongs. Although 
the Administration supports S. 1634, subject to the suggestions 
outlined above, we are concerned about the message that would 
be sent if Congress were to pass this legislation while the 
CNMI remains the only U.S. territory or commonwealth without a 
delegate in Congress. At a time when young men and women from 
the CNMI are sacrificing their lives in Iraq in proportions 
that far exceed the national average, we hope that Congress 
will consider granting them a seat at the table at which their 
fate will be decided.
    Thank you.

                        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 H.R. 3079, 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):

                   JOINT RESOLUTION OF MARCH 24, 1976

                          (Public Law 94-241)

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.

           *       *       *       *       *       *       *

                              ``Article V

``APPLICABILITY OF LAWS

           *       *       *       *       *       *       *

    ``Section 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)] (a) 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)] (b) the minimum wage provisions of Section 6, 
        Act of June 25, 1938, 52 Stat. 1062, as amended.

           *       *       *       *       *       *       *

    [``Section 506. (a) Notwithstanding the provisions of 
Subsection 503(a), upon the effective date of this Section the 
Northern Mariana Islands will be deemed to be a part of the 
United States under the Immigration and Nationality Act, as 
amended for the following purposes only, and the said Act will 
apply to the Northern Mariana Islands to the extent indicated 
in each of the following Subsections of this Section.
    [``(b) With respect to children born abroad to United 
States citizen or non-citizen national parents permanently 
residing in the Northern Mariana Islands the provisions of 
Sections 301 and 308 of the said Act will apply.
    [``(c) With respect to aliens who are `immediate' 
relatives'' (as defined in Subsection 201(b) of the said Act) 
of United States citizens who are permanently residing in the 
Northern Mariana Islands all the provisions of the said Act 
will apply, commencing when a claim is made to entitlement to 
`immediate relative' status. A person who is certified by the 
Government of the Northern Mariana Islands both to have been a 
lawful permanent resident of the Northern Mariana Islands and 
to have had the `immediate relative' relationship denoted 
herein on the effective date of this Section will be presumed 
to have been admitted to the United States for lawful permanent 
residence as of that date without the requirement of any of the 
usual procedures set forth in the said Act. For the purpose of 
the requirements of judicial naturalization, the Northern 
Mariana Islands will be deemed to constitute a State as defined 
in Subsection 101(a) paragraph (36) of the said Act. The Courts 
of record of the Northern Mariana Islands and the District 
Court for the Northern Mariana Islands will be included among 
the courts specified in Subsection 310(a) of the said Act and 
will have jurisdiction to naturalize persons who become 
eligible under this Section and who reside within their 
respective jurisdictions.
    [``(d) With respect to persons who will become citizens or 
nationals of the United States under Article III of this 
Covenant or under this Section the loss of nationality 
provisions of the said Act will apply.]

           *       *       *       *       *       *       *

                             ``Article VII

``UNITED STATES FINANCIAL ASSISTANCE

           *       *       *       *       *       *       *

    ``Section 703(a) * * *
    ``(b) There will be paid into the Treasury of the 
Government of the Northern Mariana Islands, to be expended to 
the benefit of the people thereof as that Government may by law 
prescribe, the proceeds of all customs duties and federal 
income taxes derived from the Northern Mariana Islands, the 
proceeds of all taxes collected under the internal revenue laws 
of the United States on articles produced in the Northern 
Mariana Islands and transported to the United States, its 
territories or possessions, or consumed in the Northern Mariana 
Islands, the proceeds of any other taxes which may be levied by 
the Congress on the inhabitants of the Northern Mariana 
Islands, and all [quarantine, passport, immigration and 
naturalization] quarantine and passport fees collected in the 
Northern Mariana Islands, except that nothing in this Section 
shall be construed to apply to any tax imposed by Chapters 2 or 
21 of Title 26, United States Code.

           *       *       *       *       *       *       *

SEC. 3. IMMIGRATION AND TRANSITION.

    (a) Application of the Immigration and Nationality Act and 
Establishment of a Transition Program.
          (1) In general.--Subject to paragraphs (2) and (3), 
        effective on the first day of the first full month 
        commencing 1 year after the date of enactment of the 
        Northern Mariana Islands Immigration, Security, and 
        Labor Act (hereafter referred to as the ``transition 
        program effective date''), the provisions of the 
        ``immigration laws'' (as defined in section 101(a)(17) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1l01(a)(17))) shall apply to the Commonwealth of the 
        Northern Mariana Islands (referred to in this section 
        as the ``Commonwealth''), except as otherwise provided 
        in this section.
          (2) Transition period.--There shall be a transition 
        period beginning on the transition program effective 
        date and ending December 31, 2013, except as provided 
        in subsections (b) and (d), during which the Secretary 
        of Homeland Security, in consultationwith the Secretary 
of State, the Attorney General, the Secretary of Labor, and the 
Secretary of the Interior, shall establish, administer, and enforce a 
transition program to regulate immigration to the Commonwealth, as 
provided in this section (hereafter referred to as the ``transition 
program'').
          (3) Delay of commencement of transition period.--
                  (A) In general.--The Secretary of Homeland 
                Security, in the Secretary's sole discretion, 
                in consultation with the Secretary of the 
                Interior, the Secretary of Labor, the Secretary 
                of State, the Attorney General, and the 
                Governor of the Commonwealth, may request that 
                the transition program effective date be 
                delayed for a period not to exceed more than 
                180 days after such date.
                  (B) Congressional notification.--The 
                Secretary of Homeland Security shall notify the 
                Congress of a request under subparagraph (A) 
                not later than 30 days prior to the transition 
                program effective date.
                  (C) Congressional review.--A delay of the 
                transition program effective date shall not 
                take effect until 30 days after the date on 
                which the request under subparagraph (A) is 
                made.
          (4) Requirement for regulations.--The transition 
        program shall be implemented pursuant to regulations to 
        be promulgated, as appropriate, by the head of each 
        agency or department of the United States having 
        responsibilities under the transition program.
          (5) Interagency agreements.--The Secretary of 
        Homeland Security, the Secretary of State, the 
        Secretary of Labor, and the Secretary of the Interior 
        shall negotiate and implement agreements among their 
        agencies to identify and assign their respective duties 
        so as to ensure timely and proper implementation of the 
        provisions of this section. The agreements should 
        address, at a minimum, procedures to ensure that 
        Commonwealth employers have access to adequate labor, 
        and that tourists, students, retirees, and other 
        visitors have access to the Commonwealth without 
        unnecessary delay or impediment. The agreements may 
        also allocate funding between the respective agencies 
        tasked with various responsibilities under this 
        section.
          (6) Certain education funding.--Except as otherwise 
        provided, fees collected pursuant to section 703(b) 
        shall be paid into the Treasury of the Commonwealth 
        government for the purpose of funding ongoing 
        vocational educational curricula and program 
        development by Commonwealth educational entities. Fees 
        paid into the Treasury of the Commonwealth under this 
        paragraph shall not exceed fees collected by the 
        Commonwealth government under local law and deposited 
        into the Nonresident Worker Fee Fund for the year 
        preceding the date of enactment of the Northern Mariana 
        Islands Immigration, Security, and Labor Act and shall 
        only be paid under this subsection for the duration of 
        the transition program period.
          (7) Asylum.--Section 208 of the Immigration and 
        Nationality Act (8 U.S.C. 1158) shall not apply during 
        the transition period to persons physically present in 
        the Commonwealth or arriving in the Commonwealth 
        (whether or not at a designated port of arrival), 
        including persons brought to the Commonwealth after 
        having been interdicted in international or United 
        States waters.
    (b) Numerical Limitations for Nonimmigrant Workers.--An 
alien, if otherwise qualified, may seek admission to Guam or to 
the Commonwealth on or after the transition program effective 
date as a nonimmigrant worker under section 101(a)(15)(H) of 
the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)) 
without counting against the numerical limitations set forth in 
section 214(g) of such Act (8 U.S.C. 1184(g)). This subsection 
does not apply to any employment to be performed outside of 
Guam or the Commonwealth.
    (c) Nonimmigrant Investor Visas.--
          (1) In general.--Notwithstanding the treaty 
        requirements in section 101(a)(15)(E) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)(E)), during the transition period, the 
        Secretary of Homeland Security may, upon the 
        application of an alien, classify an alien as a CNMI-
        only 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 in 
                long-term investor status under the immigration 
                laws of the Commonwealth before the transition 
                program effective date;
                  (B) has continuously maintained residence in 
                the Commonwealth 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) Requirement for regulations.--Not later than 180 
        days after the transition program effective date, the 
        Secretary of Homeland Security shall publish 
        regulations in the Federal Register to implement this 
        subsection.
          (3) Interim procedures.--The Secretary of Homeland 
        Security 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.
    (d) Special Provision To Ensure Adequate Employment; 
Commonwealth Only Transitional Workers.--An alien who is 
seeking to enter the Commonwealth as a nonimmigrant worker may 
be admitted to perform work during the transition period 
subject to the following requirements:
          (1) Such an alien shall be treated as a nonimmigrant 
        described in 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) The Secretary of Homeland Security 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 such nonimmigrant worker described 
        in this subsection who would not otherwise be eligible 
        for admission under the Immigration and Nationality Act 
        (8 U.S.C. 1101 et seq.). In adopting and enforcing this 
        system, the Secretary shall also consider, not later 
        than 30 days after receipt by the Secretary, any 
        comments and advice submitted by the Governor of the 
        Commonwealth. This system shall provide for a reduction 
        in the allocation of permits for such workers on an 
        annual basis, to zero, during a period not to extend 
        beyond December 31, 2013, unless extended pursuant to 
        paragraph 5 of this subsection, 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 Secretary of Homeland 
        Security to promote the maximum use of, and to prevent 
        adverse effects on, wages and working conditions of 
        workers authorized to be employed in the United States, 
        including lawfully admissible freely associated state 
        citizen labor. No alien shall be granted nonimmigrant 
        classification or a visa under this subsection unless 
        the permit requirements established under this 
        paragraph have been met.
          (3) The Secretary of Homeland Security shall set the 
        conditions for admission of such an alien under the 
        transition program, and the Secretary of State shall 
        authorize the issuance of nonimmigrant visas for such 
        an alien to engage in employment only as authorized in 
        this subsection. Such a visa 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 admission to the 
        Commonwealth. An alien admitted to the Commonwealth on 
        the basis of such a visa shall be permitted to engage 
        in employment only as authorized pursuant to the 
        transition program.
          (4) Such an alien shall be permitted to transfer 
        between employers in the Commonwealth during the period 
        of such alien's authorized stay therein, without 
        advance permission of the employee's current or prior 
        employer, within the alien's occupational category or 
        another occupational category the Secretary of Homeland 
        Security has found requires alien workers to supplement 
        the resident workforce.
          (5)(A) Not later than 180 days prior to the 
        expiration of the transition period, or any extension 
        thereof, the Secretary of Labor, in consultation with 
        the Secretary of Homeland Security, the Secretary of 
        the Interior, and the Governor of the Commonwealth, 
        shall ascertain the current and anticipated labor needs 
        of the Commonwealth and determine whether an extension, 
        in up to a 5-year increment, of the provisions of this 
        subsection are necessary to ensure an adequate number 
        of workers will be available for legitimate businesses 
        in the Commonwealth. For the purpose of this 
        subparagraph, a business shall not be considered 
        legitimate if it engages directly or indirectly in 
        prostitution, trafficking in minors, or any other 
        activity that is illegal under Federal or local law. 
        The determinations of whether a business is legitimate 
        and to what extent, if any, it may require alien 
        workers to supplement the resident workforce, shall be 
        made by the Secretary of Homeland Security, in the 
        Secretary's sole discretion, and shall not be 
        reviewable.
          (B) If the Secretary of Labor determines that such an 
        extension is necessary to ensure an adequate number of 
        workers for legitimate businesses in the Commonwealth, 
        the Secretary ofLabor may, through notice published in 
the Federal Register, provide for 1 or more extension periods of up to 
5 years for each such extension period.
                  (C) In making the determination of whether 
                alien workers are necessary to ensure an 
                adequate number of workers for legitimate 
                businesses in the Commonwealth, and if so, the 
                number of such workers that are necessary, the 
                Secretary of Labor may consider, among other 
                relevant factors--
                          (i) government, industry, or 
                        independent workforce studies reporting 
                        on the need, or lack thereof, for alien 
                        workers in the Commonwealth's 
                        businesses;
                          (ii) the unemployment rate of United 
                        States citizen workers residing in the 
                        Commonwealth;
                          (iii) the unemployment rate of aliens 
                        in the Commonwealth who have been 
                        lawfully admitted for permanent 
                        residence;
                          (iv) the number of unemployed alien 
                        workers in the Commonwealth;
                          (v) any good faith efforts to locate, 
                        educate, train, or otherwise prepare 
                        United States citizen residents, lawful 
                        permanent residents, and unemployed 
                        alien workers already within the 
                        Commonwealth, to assume those jobs;
                          (vi) any available evidence tending 
                        to show that United States citizen 
                        residents, lawful permanent residents, 
                        and unemployed alien workers already in 
                        the Commonwealth are not willing to 
                        accept jobs of the type offered;
                          (vii) the extent to which admittance 
                        of alien workers will affect the 
                        compensation, benefits, and living 
                        standards of existing workers within 
                        those industries and other industries 
                        authorized to employ alien workers; and
                          (viii) the prior use, if any, of 
                        alien workers to fill those industry 
                        jobs, and whether the industry is 
                        overly and unnecessarily reliant on 
                        alien workers.
          (6) The Secretary of Homeland Security may authorize 
        the admission of a spouse or minor child accompanying 
        or following to join a worker admitted pursuant to this 
        subsection.
    (e) Persons Lawfully Admitted Under the Commonwealth 
Immigration Law.--
          (1) Prohibition on removal.--
                  (A) In general.--Subject to subparagraph (B), 
                no alien who is lawfully present in the 
                Commonwealth pursuant to the immigration laws 
                of the Commonwealth on the transition program 
                effective date shall be removed from the United 
                States on the grounds that such alien's 
                presence in the Commonwealth is in violation of 
                section 212(a)(6)(A) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(6)(A)), until 
                the earlier of the date--
                          (i) of the completion of the period 
                        of the alien's admission under the 
                        immigration laws of the Commonwealth; 
                        or
                          (ii) that is 2 years after the 
                        transition program effective date.
                  (B) Limitations.--Nothing in this subsection 
                shall be construed to prevent or limit the 
                removal under subparagraph 212(a)(6)(A) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1182(a)(6)(A)) of such an alien at any time, if 
                the alien entered the Commonwealth after the 
                date of enactment of the Northern Mariana 
                Islands Immigration, Security, and Labor Act, 
                and the Secretary of Homeland Security has 
                determined that the alien entered the 
                Commonwealth in violation of this section.
          (2) Employment authorization.--An alien who is 
        lawfully present and authorized to be employed in the 
        Commonwealth pursuant to the immigration laws of the 
        Commonwealth on the transition program effective date 
        shall be considered authorized by the Secretary of 
        Homeland Security to be employed in the Commonwealth 
        until the earlier of the date--
                  (A) of expiration of the alien's employment 
                authorization under the immigration laws of the 
                Commonwealth; or
                  (B) that is 2 years after the transition 
                program effective date.
          (3) Registration.--The Secretary of Homeland Security 
        may require any alien present in the Commonwealth on or 
        after the transition period effective date to register 
        with the Secretary in such a manner, and according to 
        such schedule, as he may in his unreviewable discretion 
        require. Paragraphs (1) and (2) of this subsection 
        shall not apply to any alien who fails to comply with 
        such registration requirement. Notwithstanding any 
        other law, the Government of the Commonwealth shall 
        provide to the Secretary all Commonwealth immigration 
        records or other information that the Secretary deems 
        necessary to assist the implementation of this 
        paragraph or other provisions of the Northern Mariana 
        Islands Immigration, Security, and Labor Act. Nothing 
        in this paragraph shall modify or limit section 262 of 
        the Immigration and Nationality Act (8 U.S.C. 1302) or 
        other provision of the Immigration and Nationality Act 
        relating to the registration of aliens.
          (4) Removable aliens.--Except as specifically 
        provided in paragraph (1)(A) of this subsection, 
        nothing in this subsection shall prohibit or limit the 
        removal of any alien who is removable under the 
        Immigration and Nationality Act.
          (5) Prior orders of removal.--The Secretary of 
        Homeland Security may execute any administratively 
        final order of exclusion, deportation or removal issued 
        under authority of the immigration laws of the United 
        States before, on, or after the transition period 
        effective date, or under authority of the immigration 
        laws of the Commonwealth before the transition period 
        effective date, upon any subject of such order found in 
        the Commonwealth on or after the transition period 
        effective date, regardless whether the alien has 
        previously been removed from the United States or the 
        Commonwealth pursuant to such order.
    (f) Effect on Other Laws.--The provisions of this section 
and of the immigration laws, as defined in section 101(a)(17) 
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(17)), 
shall, on the transition program effective date, supersede and 
replace all laws, provisions, or programs of the Commonwealth 
relating to the admission of aliens and the removal of aliens 
from the Commonwealth.
    (g) Accrual of Time for Purposes of Section 212(A)(9)(B) of 
the Immigration and Nationality Act.--No time that an alien is 
present in the Commonwealth in violation of the immigration 
laws of the Commonwealth shall be counted for purposes of 
inadmissibility under section 212(a)(9)(B) of the Immigration 
and Nationality Act (8 U.S.C. 1182(a)(9)(B)).
    (h) Report on Nonresident Guestworker Population.--The 
Secretary of the Interior, in consultation with the Secretary 
of Homeland Security, and the Governor of the Commonwealth, 
shall report to the Congress not later than 2 years after the 
date of the enactment of the Northern Mariana Islands 
Immigration, Security, and Labor Act. The report shall 
include--
          (1) the number of aliens residing in the 
        Commonwealth;
          (2) a description of the legal status (under Federal 
        law) of such aliens;
          (3) in five year increments, the number of years each 
        alien has been residing in the Commonwealth;
          (4) the current and future requirements for the 
        Commonwealth economy of an alien workforce; and
          (5) recommendations to the Congress related to 
        granting alien workers lawfully present in the 
        Commonwealth on the date of the enactment of such Act 
        United States citizenship or some other permanent legal 
        status.
    (i) 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 (8 U.S.C. 1101 et seq.).

IMMIGRATION AND NATIONALITY ACT

           *       *       *       *       *       *       *

                            TITLE I--GENERAL

                              DEFINITIONS

    Section 101. (a) As used in this Act--
          (1) * * *

           *       *       *       *       *       *       *

          (15) The term ``immigrant'' means every alien except 
        an alien who is within one of the following classes of 
        nonimmigrant aliens--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D)(i) * * *
                  (ii) an alien crewman serving in good faith 
                as such in any capacity required for normal 
                operations and service aboard a fishing vessel 
                having its home port or an operating base in 
                the United States who intends to land 
                temporarily in Guam or the Commonwealth of the 
                Northern Mariana Islands and solely in pursuit 
                of his calling as a crewman and to depart from 
                Guam or the Commonwealth of the Northern 
                Mariana Islands with the vessel on which he 
                arrived;

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *

                         TITLE II--IMMIGRATION

Chapter l--Selection System

           *       *       *       *       *       *       *

                                 ASYLUM

    Sec. 208. (a) * * *

           *       *       *       *       *       *       *

    (e) Commonwealth of the Northern Mariana Islands.--The 
provisions of this section and section 209(b) of this Act shall 
apply to persons physically present in the Commonwealth of the 
Northern Mariana Islands or arriving in the Commonwealth 
(whether or not at a designated port of arrival and including 
persons who are brought to the Commonwealth after having been 
interdicted in international or United States waters) only on 
or after January 1, 2018.

           *       *       *       *       *       *       *

 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *

 GENERAL CLASSES OF ALIENS INELIGIBLE TO RECEIVE VISAS AND INELIGIBLE 
               FOR ADMISSION; WAIVERS OF INADMISSIBILITY

    Sec. 212. (a) Classes of Aliens Ineligible for Visas or 
Admission.--Except as otherwise provided in this Act, aliens 
who are inadmissible under the following paragraphs are 
ineligible to receive visas and ineligible to be admitted to 
the United States:
          (1) * * *

           *       *       *       *       *       *       *

          (7) Documentation requirements.--
                  (A) * * *
                  (B) Nonimmigrants.--
                          (i) * * *
                          [(iii) Guam visa waiver.--For 
                        provision authorizing waiver of clause 
                        (i) in the case of visitors to Guam, 
                        see subsection (1).]
                          (iii) Guam and northern mariana 
                        islands visa waiver.--For provision 
                        authorizing waiver of clause (i) in the 
                        case of visitors to Guam or the 
                        Commonwealth of the Northern Mariana 
                        Islands, see subsection (l).--

           *       *       *       *       *       *       *

    (d)(l) * * *

           *       *       *       *       *       *       *

        (7) The provisions of subsection (a) (other than 
        paragraph (7)) shall be applicable to any alien who 
        shall leave Guam, the Commonwealth of the Northern 
        Mariana Islands, Puerto Rico, or the Virgin Islands of 
        the United States, and who seeks to enter the 
        continental United States or any other place under the 
        jurisdiction of the United States. Any alien described 
        in this paragraph, who is denied admission to the 
        United States, shall be immediately removed in the 
        manner provided by section 241(c) of this Act.

           *       *       *       *       *       *       *

          [(l)(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 nonimmigrant 
        visitor for business or pleasure and solely for entry 
        into and stay on Guam for a period not to exceed 
        fifteen days, if the Attorney General, the Secretary of 
        State and the Secretary of the Interior, after 
        consultation with the Governor of Guam, jointly 
        determine that--
                  [(A) an adequate arrival and departure 
                control system has been developed on Guam, and
                  [(B) such a 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 an 
                immigration officer's determination as to the 
                admissibility of the alien at the port of entry 
                into Guam, 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 such funds as may be tendered to cover all or any 
        part of the cost of administration and enforcement of 
        this subsection.]
    (l) Guam and Northern Mariana Islands Visa Waiver 
Program.--
          (1) In general.--The requirement of subsection 
        (a)(7)(B)(i) may be waived by the Secretary of Homeland 
        Security, in the case of an alien applying for 
        admission as a nonimmigrant visitor for business or 
        pleasure and solely for entry into and stay in Guam or 
        the Commonwealth of the Northern Mariana Islands for a 
        period not to exceed 45 days, if the Secretary of the 
        Interior, after consultation with the Secretary of 
        Homeland Se-curity, the Secretary of State, the 
Governor of Guam and the Governor of the Commonwealth of the Northern 
Mariana Islands, determines that--
                  (A) an adequate arrival and departure control 
                system has been developed in Guam and the 
                Commonwealth of the Northern Mariana Islands; 
                and
                  (B) such a waiver does not represent a threat 
                to the welfare, safety, or security of the 
                United States or its territories and 
                commonwealths.
          (2) Alien waiver of rights.--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 an 
                immigration officer's determination as to the 
                admissibility of the alien at the port of entry 
                into Guam or the Commonwealth of the Northern 
                Mariana Islands; or
                  (B) to contest, other than on the basis of an 
                application for withholding of removal under 
                section 241(b)(3) of this Act or under the 
                Convention Against Torture, or an application 
                for asylum, any action for removal of the 
                alien.
          (3) Regulations.--All necessary regulations to 
        implement this subsection shall be promulgated by the 
        Secretary of Homeland Security, in consultation with 
        the Secretary of the Interior and the Secretary of 
        State, on or before the 180th day after the date of the 
        enactment of the Northern Mariana Islands Immigration, 
        Security, and Labor Act. The promulgation of such 
        regulations shall be considered a foreign affairs 
        function for purposes of section 553(a) of title 5, 
        United States Code. At a minimum, such regulations 
        should include, but not necessarily be limited to--
                  (A) a listing of all countries whose 
                nationals may obtain the waiver also provided 
                by this subsection, except that such 
                regulations shall provide for a listing of any 
                country from which the Commonwealth has 
                received a significant economic benefit from 
                the number of visitors for pleasure within the 
                one-year period preceding the date of the 
                enactment of the Northern Mariana Islands 
                Immigration, Security, and Labor Act; and
                  (B) any bonding requirements for nationals of 
                some or all of those countries who may present 
                an increased risk of overstays or other 
                potential problems, if different from such 
                requirements otherwise provided by law for 
                nonimmigrant visitors.
          (4) Factors.--In determining whether to grant or 
        continue providing the waiver under this subsection to 
        nationals of any country, the Secretary of the 
        Interior, in consultation with the Secretary of 
        Homeland Security, shall consider all factors that the 
        Secretary deems relevant, including electronic travel 
        authorizations, procedures for reporting lost and 
        stolen passports, repatriation of aliens, rates of 
        refusal for nonimmigrant visitor visas, overstays, exit 
        systems, and information exchange.
          (5) Suspension.--The Secretary of Homeland Security 
        shall monitor the admission of nonimmigrant visitors to 
        Guam and the Commonwealth of the Northern Mariana 
        Islands under this subsection. If the Secretary 
        determines that such admissions have resulted in an 
        unacceptable number of visitors from a country 
        remaining unlawfully in Guam or the Commonwealth of the 
        Northern Mariana Islands, unlawfully obtaining entry to 
        other parts of the United States, or seeking 
        withholding of removal or asylum, or that visitors from 
        a country pose a risk to law enforcement or security 
        interests of Guam or the Commonwealth of the Northern 
        Mariana Islands or of the United States (including the 
        interest in the enforcement of the immigration laws of 
        the United States), the Secretary shall suspend the 
        admission of nationals of such country under this 
        subsection. The Secretary of Homeland Security may in 
        the Secretary's discretion suspend the Guam and 
        Northern Mariana Islands visa waiver program at any 
        time, on a country-by-country basis, for other good 
        cause.
          (6) Addition of countries.--The Governor of Guam and 
        the Governor of the Commonwealth of the Northern 
        Mariana Islands may request the Secretary of the 
        Interior to add a particular country to the list of 
        countries whose nationals may obtain the waiver 
        provided by this subsection, and the Secretary may 
        grant such request after consultation with the 
        Secretary of Homeland Security and the Secretary of 
        State, and may promulgate regulations with respect to 
        the inclusion of that country and any special 
        requirements the Secretary of Homeland Security, in the 
        Secretary's sole discretion, may impose prior to 
        allowing nationals of that country to obtain the waiver 
        provided by this subsection.

           *       *       *       *       *       *       *

                       ADMISSION OF NONIMMIGRANTS

    Sec. 214. (a)(1) The admission to the United States of any 
alien as a nonimmigrant shall be for such time and under such 
conditions as the Attorney General may by regulations 
prescribe, including when he deems necessary the giving of a 
bond with sufficient surety in such sum and containing such 
conditions as the Attorney General shall prescribe, to insure 
that at the expiration of such time or upon failure to maintain 
the status under which he was admitted, or to maintain any 
status subsequently acquired under section 248, such alien will 
depart from the United States. No alien admitted to [Guam] Guam 
or the Commonwealth of the Northern Mariana Islands without a 
visa pursuant to section 212(l) may be authorized to enter or 
stay in the United States other than in [Guam] Guam or the 
Commonwealth of the Northern Mariana Islands or to remain in 
[Guam] Guam or the Commonwealth of the Northern Mariana Islands 
for a period exceeding fifteen days from date of admission to 
[Guam] Guam or the Commonwealth of the Northern Mariana 
Islands. No alien admitted to the United States without a visa 
pursuant to section 217 may be authorized to remain in the 
United States as a nonimmigrant visitor for a period exceeding 
90 days from the date of admission.

           *       *       *       *       *       *       *

   Chapter 4--Inspection, Apprehension, Examination, Exclusion, and 
Removal

           *       *       *       *       *       *       *

 INSPECTION BY IMMIGRATION OFFICERS; EXPEDITED REMOVAL OF INADMISSIBLE 
                 ARRIVING ALIENS; REFERRAL FOR HEARING

    Sec. 235. (a) * * *
    (b) Inspection of Applicants for Admission.--
          (1) Inspection of aliens arriving in the united 
        states and certain other aliens who have not been 
        admitted or paroled.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (G) Commonwealth of the northern mariana 
                islands.--Nothing in this subsection shall be 
                construed to authorize or require any person 
                described in section 208(e) of this Act to be 
                permitted to apply for asylum under section 208 
                of this Act at any time before January 1, 2018.

           *       *       *       *       *       *       *

               Chapter 5--Adjustment and Change of Status

  ADJUSTMENT OF STATUS OF NONIMMIGRANT TO THAT OF PERSON ADMITTED FOR 
                          PERMANENT RESIDENCE

    Sec. 245. (a) * * *
    (c) Other than an alien having an approved petition for 
classification as a VAWA self-petitioner, subsection (a) shall 
not be applicable to (1) an alien crewman; (2) subject to 
subsection (k), an alien (other than an immediate relative as 
defined in section 201(b) or a special immigrant described in 
section 101(a)(27)(H), (I), (J), or (K) who hereafter continues 
in or accepts unauthorized employment prior to filing an 
application for adjustment of status or who is in unlawful 
immigration status on the date of filing the application for 
adjustment of status or who has failed (other than through no 
fault of his own or for technical reasons) to maintain 
continuously a lawful status since entry into the United 
States; (3) any alien admitted in transit without visa under 
section 212(d)(4)(C); (4) an alien (other than an immediate 
relative as defined in section 201(b)) who was admitted as a 
nonimmigrant visitor without a visa under section 212(1), 
section 212(o), section 217; (5) an alien who was admitted as a 
nonimmigrant described in section 101(a)(15)(S), (6) an alien 
who is deportable under section 237(a)(4)(B); (7) any alien who 
seeks adjustment of status to that of an immigrant under 
section 203(b) and is not in a lawful nonimmigrant status; or 
(8) any alien who was employed while the alien was an 
unauthorized alien, as defined in section 274A(h)(3), or who 
has otherwise violated the terms of a nonimmigrant visa.

           *       *       *       *       *       *       *

                 CHANGE OF NONIMMIGRANT CLASSIFICATION

    Sec. 248. (a) The Secretary of Homeland Security may, under 
such conditions as he may prescribe, authorize a change from 
anynonimmigrant classification to any other nonimmigrant 
classification in the case of any alien lawfully admitted to the United 
States as a nonimmigrant who is continuing to maintain that status and 
who is not inadmissible under section 212(a)(9)(B)(i) (or whose 
inadmissibility under such section is waived under section 
212(a)(9)(B)(v), except (subject to subsection (b) in the case of--
          (1) * * *

           *       *       *       *       *       *       *

          (4) an alien admitted as a nonimmigrant visitor 
        without a visa under section 212(l), section 212(o), or 
        section 217.

           *       *       *       *       *       *       *

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TITLE 10, UNITED STATES CODE

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Subtitle B--Army

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PART III--TRAINING

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CHAPTER 403--UNITED STATES MILITARY ACADEMY

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Sec. 4342. Cadets: appointment; numbers, territorial distribution

    (a) The authorized strength of the Corps of Cadets of the 
Academy (determined for any year as of the day before the last 
day of the academic year) is 4,000 or such higher number as may 
be prescribed by the Secretary of the Army under subsection 
(j). Subject to that limitation, cadets are selected as 
follows:
          (1) * * *

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          (10) One cadet from the Commonwealth of the Northern 
        Mariana Islands, nominated by the [resident 
        representative] Delegate in Congress from the 
        commonwealth.

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Subtitle C--Navy and Marine Corps

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PART III--EDUCATION AND TRAINING

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CHAPTER 603--UNITED STATES NAVAL ACADEMY 

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Sec. 6954. Midshipmen: number

    (a) The authorized strength of the Brigade of Midshipmen 
(determined for any year as of the day before the last day of 
the academic year) is 4,000 or such higher number as may be 
prescribed by the Secretary of the Navy under subsection (h). 
Subject to that limitation, midshipmen are selected as follows:
          (1) * * *

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          (10) One from the Commonwealth of the Northern 
        Mariana Islands, nominated by the [resident 
        representative] Delegate in Congress from the 
        commonwealth.

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Subtitle D--Air Force

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PART III--TRAINING

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CHAPTER 903--UNITED STATES AIR FORCE ACADEMY 

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Sec. 9342. Cadets: appointment; numbers, territorial distribution

    (a) The authorized strength of Air Force Cadets of the 
Academy (determined for any year as of the day before the last 
day of the academic year) is 4,000 or such higher number as may 
be prescribed by the Secretary of the Air Force under 
subsection (j). Subject to that limitation, Air Force Cadets 
are selected as follows:
          (1) * * *

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          (10) One cadet from the Commonwealth of the Northern 
        Mariana Islands, nominated by the [resident 
        representative] Delegate in Congress from the 
        commonwealth.

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