I 

115TH CONGRESS 

1ST SESSION H. R. 2085 

To approve an agreement between the United States and the Republic of 

Palau, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 8, 2017 

Mr. SABLAN (for himself and Ms. BORDALLO) introduced the following bill; 

which was referred to the Committee on Natural Resources, and in addition to the Committee on Foreign Affairs, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To approve an agreement between the United States and 

the Republic of Palau, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. APPROVAL OF THE AGREEMENT BETWEEN THE 

4 UNITED STATES AND THE REPUBLIC OF 

5 PALAU. 

6 (a) DEFINITIONS.—In this section: 

7 (1) AGREEMENT.—The term ‘‘Agreement’’ 

8 means the Agreement and appendices signed by the 


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1 United States and the Republic of Palau on Sep2 tember 3, 2010. 

3 (2) COMPACT OF FREE ASSOCIATION.—The 

4 term ‘‘Compact of Free Association’’ means the 

5 Compact of Free Association between the Govern6 ment of the United States of America and the Gov7 ernment of Palau (48 U.S.C. 1931 note; Public Law 

8 99–658). 

9 (b) RESULTS OF COMPACT REVIEW.— 

10 (1) IN GENERAL.—Title I of Public Law 99– 

11 658 (48 U.S.C. 1931 et seq.) is amended by adding 

12 at the end the following: 

13 ‘‘SEC. 105. RESULTS OF COMPACT REVIEW. 

14 ‘‘(a) IN GENERAL.—The Agreement and appendices 

15 signed by the United States and the Republic of Palau 

16 on September 3, 2010 (referred to in this section as the 

17 ‘Agreement’), in connection with section 432 of the Com18 pact of Free Association between the Government of the 

19 United States of America and the Government of Palau 

20 (48 U.S.C. 1931 note; Public Law 99–658) (referred to 

21 in this section as the ‘Compact of Free Association’), are 

22 approved— 

23 ‘‘(1) except for the extension of Article X of the 

24 Agreement Regarding Federal Programs and Serv25 ices, and Concluded Pursuant to Article II of Title 


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1 II and section 232 of the Compact of Free Associa2 tion; and 

3 ‘‘(2) subject to the provisions of this section. 

4 ‘‘(b) WITHHOLDING OF FUNDS.—If the Republic of 

5 Palau withdraws more than $9,000,000 from the trust 

6 fund established under section 211(f) of the Compact of 

7 Free Association in fiscal year 2018, amounts payable 

8 under sections 1, 2(a), 3, and 4(a), of the Agreement shall 

9 be withheld from the Republic of Palau until the date on 

10 which the Republic of Palau reimburses the trust fund for 

11 the total amounts withdrawn that exceeded $9,000,000 in 

12 that fiscal year, except that funds to be provided under 

13 section 3 of the Agreement may be released to replenish 

14 the 211(f) Fund if an arrangement had been made be15 tween the United States and the Republic of Palau to ad16 vance funds during such fiscal year from the 211(f) Fund 

17 for the purposes allowable under section 3 of the Agree18 ment. 

19 ‘‘(c) FUNDING FOR CERTAIN PROVISIONS UNDER

20 SECTION 105 OF COMPACT OF FREE ASSOCIATION.—Not 

21 later than 30 days after the date of the enactment of this 

22 section, out of any funds in the Treasury not otherwise 

23 appropriated, the Secretary of the Treasury shall transfer 

24 to the Secretary of the Interior such sums as are necessary 

25 for the Secretary of the Interior to implement sections 1, 


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1 2(a), 3, 4(a), 5, and 6 of the Agreement, which sums shall 

2 remain available until expended without any further ap3 propriation. 

4 ‘‘(d) AUTHORIZATIONS OF APPROPRIATIONS.—There 

5 are authorized to be appropriated— 

6 ‘‘(1) to the Secretary of the Interior to sub7 sidize postal services provided by the United States 

8 Postal Service to the Republic of Palau, the Repub9 lic of the Marshall Islands, and the Federated States 

10 of Micronesia, $1,500,000 for each of fiscal years 

11 2018 through 2024, to remain available until ex12 pended but may be available pursuant to this para13 graph to the United States Postal Service only so 

14 long as domestic postage may be used for mail to 

15 Palau, the Federated States of Micronesia, and the 

16 Republic of the Marshall Islands; and 

17 ‘‘(2) to the head of each Federal entity de18 scribed in paragraphs (1), (3), and (4) of section 

19 221(a) of the Compact of Free Association (includ20 ing the successor of each Federal entity) to carry 

21 out the responsibilities of the Federal entity under 

22 section 221(a) of the Compact of Free Association 

23 such sums as are necessary, to remain available 

24 until expended.’’. 


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1 (2) OFFSET.—Section 3 of the Act of June 30, 

2 1954 (68 Stat. 330, 82 Stat. 1213, chapter 423), is 

3 repealed. 

4 (c) PAYMENT SCHEDULE; WITHHOLDING OF FUNDS; 

5 FUNDING.— 

6 (1) COMPACT SECTION 211(f) FUND.—Section 

7 1 of the Agreement shall be construed as though the 

8 section reads as follows: 

9 ‘‘SEC. 1. COMPACT SECTION 211(f) FUND. 

10 ‘‘The Government of the United States shall con11 tribute $30,250,000 to the Fund referred to in section 

12 211(f) of the Compact in accordance with the following 

13 schedule: 

14 ‘‘(1) $22,000,000 in fiscal year 2018. 

15 ‘‘(2) $2,000,000 in each of fiscal years 2019 

16 through 2022. 

17 ‘‘(3) $250,000 in fiscal year 2023.’’. 

18 (2) INFRASTRUCTURE MAINTENANCE FUND.— 

19 Subsection (a) of section 2 of the Agreement shall 

20 be construed as though the subsection reads as fol21 lows: 

22 ‘‘(a) The Government of the United States shall pro23 vide a grant of $16,000,000 in fiscal year 2018, rep24 resenting the amounts to have been provided by the 

25 United States in fiscal years 2011 through 2017 under 


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1 section 2(a) of the Agreement, and a grant of $2,000,000 

2 annually from the beginning of fiscal year 2019 through 

3 fiscal year 2024 to create a trust fund, to be known as 

4 the ‘Infrastructure Maintenance Fund’, to be used for the 

5 routine and periodic maintenance of major capital im6 provement projects financed by funds provided by the 

7 United States. The Government of the Republic of Palau 

8 shall match the contributions made by the United States 

9 by making contributions of $150,000 to the Infrastructure 

10 Maintenance Fund on a quarterly basis from the begin11 ning of fiscal year 2018 through fiscal year 2024. Imple12 mentation of this subsection shall be carried out in accord13 ance with the provisions of Appendix A of this Agree14 ment.’’. 

15 (3) FISCAL CONSOLIDATION FUND.—Section 3 

16 of the Agreement shall be construed as though the 

17 section reads as follows: 

18 ‘‘SEC. 3. FISCAL CONSOLIDATION FUND. 

19 ‘‘The Government of the United States shall provide 

20 the Government of Palau $10,000,000 in fiscal year 2018 

21 for deposit in an interest bearing account to be used to 

22 reduce government arrears of Palau. Implementation of 

23 this section shall be carried out in accordance with the 

24 provisions of Appendix B of this Agreement.’’. 


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1 (4) DIRECT ECONOMIC ASSISTANCE.—Sub2 section (a) of section 4 of the Agreement shall be 

3 construed as though the subsection reads as follows: 

4 ‘‘(a) In addition to the economic assistance of 

5 $13,147,000 provided to the Government of Palau by the 

6 Government of the United States in each of fiscal years 

7 2010, 2011, 2012, 2013, 2014, 2015, 2016, and 2017, 

8 and unless otherwise specified in this Agreement or in an 

9 Appendix of this Agreement, the Government of the 

10 United States shall provide the Government of Palau 

11 $27,250,000 in economic assistance as follows: 

12 ‘‘(1) $7,250,000 in fiscal year 2018. 

13 ‘‘(2) $6,000,000 in fiscal year 2019. 

14 ‘‘(3) $5,000,000 in fiscal year 2020. 

15 ‘‘(4) $4,000,000 in fiscal year 2021. 

16 ‘‘(5) $3,000,000 in fiscal year 2022. 

17 ‘‘(6) $2,000,000 in fiscal year 2023. 

18 The funds provided in any fiscal year under this sub19 section for economic assistance shall be provided in 4 

20 quarterly payments (30 percent in the first quarter, 30 

21 percent in the second quarter, 20 percent in the third 

22 quarter, and 20 percent in the fourth quarter) unless oth23 erwise specified in this Agreement or in an Appendix of 

24 this Agreement.’’. 


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1 (5) INFRASTRUCTURE PROJECTS.—Section 5 of 

2 the Agreement shall be construed as though the sec3 tion reads as follows: 

4 ‘‘SEC. 5. INFRASTRUCTURE PROJECTS. 

5 ‘‘The Government of the United States shall provide 

6 in fiscal year 2018, $40,000,000 to the Government of 

7 Palau towards one or more mutually agreed infrastructure 

8 projects in accordance with the provisions of Appendix C 

9 to this Agreement.’’. 

10 (d) CONTINUING PROGRAMS AND LAWS.—Section 

11 105(f)(1)(B)(ix) of the Compact of Free Association 

12 Amendments Act of 2003 (48 U.S.C. 192ld(f)(1)(B)(ix)) 

13 is amended by striking ‘‘2009’’ and inserting ‘‘2024’’. 

14 (e) AUDIT; FULL FAITH AND CREDIT; INFLATION

15 ADJUSTMENT.—The Secretary of the Interior shall fund 

16 the amounts necessary to conduct the audits required by 

17 section 6 and Appendix D of the Agreement. Section 236 

18 of the Compact applies to the commitments of the United 

19 States under sections 1, 2(a), 3, 4(a), and 5 of the Agree20 ment, and to the amounts necessary to conduct such au21 dits, to the same extent as section 236 applies to the Com22 pact. Section 215 of the Compact shall be applied to such 

23 commitments and amounts by substituting ‘‘2010’’ for 

24 ‘‘1981’’. 


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1 (f) PASSPORT REQUIREMENT.—Section 141 of Arti2 cle IV of Title One of the Compact of Free Association 

3 shall be construed and applied as if it read as follows: 

4 ‘‘SEC. 141. PASSPORT REQUIREMENT. 

5 ‘‘(a) IN GENERAL.—An individual in one of the fol6 lowing categories may be admitted to lawfully engage in 

7 occupations and establish residence as a nonimmigrant in 

8 the United States and its territories and possessions with9 out regard to paragraphs (5) or (7)(B)(i)(II) of section 

10 212(a) of the Immigration and Nationality Act (8 U.S.C. 

11 1182(a)(5) or (a)(7)(B)(i)(II)), if the passport presented 

12 to satisfy section 212(a)(7)(B)(i)(I) of such Act is a valid, 

13 unexpired, machine-readable passport that satisfies the 

14 internationally accepted standard for machine readability: 

15 ‘‘(1) An individual who, on September 30, 

16 1994, was a citizen of the Trust Territory of the Pa17 cific Islands, as defined in title 53 of the Trust Ter18 ritory Code in force on January 1, 1979, and has 

19 become and remains a citizen of Palau. 

20 ‘‘(2) An individual who acquires the citizenship 

21 of Palau, at birth, on or after the effective date of 

22 the Constitution of Palau. 

23 ‘‘(3) A naturalized citizen of Palau, who has 

24 been an actual resident of Palau for not less than 


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1 five years after attaining such naturalization and 

2 who holds a certificate of actual residence. 

3 ‘‘(b) EMPLOYMENT.—An individual in one of the cat4 egories in paragraphs (1) through (3) of subsection (a) 

5 shall be considered to have the permission of the Secretary 

6 of Homeland Security of the United States to accept em7 ployment in the United States. 

8 ‘‘(c) HABITUAL RESIDENCE.—The right of an indi9 vidual in one of the categories in paragraphs (1) through 

10 (3) of subsection (a) to establish habitual residence in a 

11 territory or possession of the United States may be sub12 jected to non-discriminatory limitations provided for— 

13 ‘‘(1) in statutes or regulations of the United 

14 States; and 

15 ‘‘(2) in those statutes or regulations of the ter16 ritory or possession concerned which are authorized 

17 by the laws of the United States. 

18 ‘‘(d) CLARIFICATION.—Subsection (a)— 

19 ‘‘(1) does not confer on a citizen of Palau the 

20 right to establish the residence necessary for natu21 ralization under the Immigration and Nationality 

22 Act, or to petition for benefits for alien relatives 

23 under that Act; and 


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1 ‘‘(2) shall not prevent a citizen of Palau from 

2 otherwise acquiring such rights or lawful permanent 

3 resident alien status in the United States.’’. 

Æ 


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