II

105TH CONGRESS

1ST SESSION S. 1373

To establish the Commonwealth of Guam, and for other purposes.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 5, 1997

Mr. MURKOWSKI introduced the following bill; which was read twice and

referred to the Committee on Energy and Natural Resources

A BILL

To establish the Commonwealth of Guam, 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. SHORT TITLE.

4 This Act may be cited as the ‘‘Guam Commonwealth

5 Act’’.

6 SEC. 2. PREAMBLE.

7 (a) In recognition of the long-cherished aspiration of

8 the people of Guam to direct the course of their own des9 tiny, and with the belief that mutual respect, understand10 ing, and compromise among people form a more perfect

11 Union, the people of the United States of America, nur-
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1 tured in the ideals of liberty and democracy, conscious of

2 their obligations under the Treaty of Paris of 1899 and

3 the Charter of the United Nations, do hereby embrace the

4 establishment of the Commonwealth of Guam, ever mind5 ful that the right of self-determination and the heritage

6 of the Chamorro people of Guam shall be protected.

7 (b) This Act reflects the will of the people of Guam

8 to attain a greater measure of self-government in concert

9 with the United States of America, and reaffirms the prin10 ciple that governments derive their just powers only from

11 the consent of the governed.

12 (c) To this end, the Senate and House of Representa13 tives of the United States of America in Congress assem14 bled, now adopt this Act.

15 TITLE I—POLITICAL

16 RELATIONSHIP

17 SEC. 101. CREATION OF THE COMMONWEALTH AND FULL

18 SELF-GOVERNMENT.

19 (a) The Island of Guam, and its adjacent islands and

20 waters shall upon the enactment of this Act become a self21 governing Commonwealth known as the ‘‘Commonwealth

22 of Guam’’. This Act, the provisions of the United States

23 Constitution, treaties, and laws of the United States appli24 cable to Guam, and the Constitution of Guam shall be the

25 supreme law of the Commonwealth.
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1 (b) The people of Guam shall have the right of full

2 self-government, which shall extend to all rightful subjects

3 of government not inconsistent with this Act and the laws

4 of the United States applicable to Guam, and shall govern

5 themselves in accordance with this Act through a constitu6 tion of their own adoption. Such constitution shall—

7 (1) recognize, and be consistent with, the sov8 ereignty of the United States over Guam, and the

9 supremacy of the provisions of the Constitution,

10 treaties, and laws of the United States applicable to

11 Guam;

12 (2) provide for a republican form of govern13 ment;

14 (3) provide for three branches of government;

15 and

16 (4) contain a bill of rights.

17 (c) The government of the Commonwealth shall have

18 the power to sue in its own name, and, with the consent

19 of the legislature, may be sued upon any contract entered

20 into with respect to, or any tort committed incident to,

21 the exercise by the government of the Commonwealth of

22 Guam or any of its lawful powers.

23 (d) The government of the Commonwealth of Guam

24 shall have the power to establish, maintain, and operate
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1 a public educational system to the same extent as the sev2 eral States.

3 SEC. 102. SELF-DETERMINATION AND UNITED STATES CITI4 ZENSHIP RIGHTS.

5 (a) The Congress recognizes the inalienable right of

6 self-determination of the indigenous Chamorro people of

7 Guam, defined as all those born on Guam before August

8 1, 1950, and their descendants. The exercise of such right

9 of self-determination shall be provided for in a constitution

10 of the Commonwealth of Guam.

11 (b) The government of Guam shall ensure that, not12 withstanding the provisions of the preceding paragraph,

13 nothing herein shall be interpreted as depriving any quali14 fied resident of Guam of the right to participate as a voter

15 in any referendum or plebiscite held under the ratification

16 procedure for this Act set forth in section 1204 hereof.

17 (c) The United States Government shall, by means

18 of additional federally funded programs, and the Common19 wealth of Guam may promote—

20 (1) the maintenance and preservation of the

21 Chamorro language, culture, and traditions;

22 (2) the enhancement of economic, social, and

23 educational opportunities for Chamorros; and
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1 (3) training of Chamorros for employment as

2 professionals, skilled workers, and leaders in busi3 ness and industry.

4 (d) The establishment of such additional programs

5 shall not affect the continued eligibility for the benefits

6 of existing programs of members of all minority groups

7 presently qualifying for such programs under current law.

8 (e) Nothing in this Act or in the constitution of the

9 Commonwealth of Guam shall impair the United States

10 citizenship of the residents of Guam or their descendants,

11 or the entitlement of legally admitted aliens permanently

12 residing in Guam, to the respective rights and privileges

13 accorded to each such class of persons under the first sen14 tence of the fourteenth amendment of the United States

15 Constitution.

16 (f) Notwithstanding any other provisions of law or

17 of this Act, the Commonwealth of Guam shall establish

18 a trust to be known as the ‘‘Chamorro Land Trust’’ for

19 the benefit of the indigenous Chamorro people of Guam

20 and composed of certain lands returned by the United

21 States before and after the effective date of this Act to

22 the Commonwealth of Guam. Nothing in this section shall

23 inhibit or prevent the direct return of lands to the original

24 owners, or the establishment of leasehold arrangements
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1 with them, by the government of the Commonwealth of

2 Guam.

3 (g) The constitution of the Commonwealth of Guam

4 shall establish reasonable residency requirements for the

5 citizens of such Commonwealth for the purposes of the

6 right to vote in Commonwealth elections or to hold any

7 elective office established by the constitution of Guam.

8 SEC. 103. MUTUAL CONSENT.

9 In order to respect the self-government granted to the

10 Commonwealth of Guam under this Act, the United States

11 agrees to limit the exercise of its authority so that the

12 provisions of this Act may be modified only with the mu13 tual consent of the Government of the United States and

14 the government of the Commonwealth of Guam.

15 TITLE II—APPLICABILITY OF

16 FEDERAL LAW

17 SEC. 201. APPLICABILITY OF UNITED STATES CONSTITU18 TION.

19 Those portions of the United States Constitution

20 which apply to Guam on the effective date of this Act

21 shall, unless specifically modified by this Act, continue to

22 apply under this Act. In addition, the following provisions

23 of and amendments to the Constitution of the United

24 States shall apply to the Commonwealth of Guam and

25 shall have the same force and effect in Guam as in the
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1 United States or in any State of the United States: Article

2 IV, section 2, clause 2 and section 4; the tenth amend3 ment, and the first sentence of the fourteenth amendment.

4 SEC. 202. EFFECT OF FEDERAL LAW.

5 Except as otherwise intended by this Act, no Federal

6 laws, rules, or regulations passed after the date of this

7 Act shall apply to the Commonwealth of Guam unless mu8 tually consented to by the United States and the govern9 ment of the Commonwealth of Guam.

10 SEC. 203. JOINT COMMISSION.

11 (a)(1) There is hereby created a Joint Commission

12 on the Applicability of Federal Law (hereinafter referred

13 to as the ‘‘Commission’’) to be composed of seven mem14 bers: three members and their successors appointed by the

15 President of the United States and four members and

16 their successors appointed by the Governor with the advice

17 and consent of the legislature of the Commonwealth of

18 Guam. The appointees by the government of Guam shall

19 be citizens of the Commonwealth of Guam who are or have

20 been ten years continuously resident on Guam at the time

21 of their appointment. Said appointees shall serve at the

22 pleasure of the President of the United States and the

23 Governor of the Commonwealth of Guam, respectively.

24 Any vacancy which may occur on the Commission shall

25 not affect its powers or functions but shall be filled in the
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1 same manner in which the original appointment was made.

2 Appointments shall be made within 60 days after the ef3 fective date of this Act.

4 (2) The Commission shall adopt its own internal reg5 ulations to govern its procedures and may delegate author6 ity on particular issues to some of its members.

7 (3) A majority of the Commission shall constitute a

8 quorum for the transaction of its business. The Commis9 sion may provide for the taking of testimony, discussion

10 issues with members of the Federal Government or gov11 ernment of Guam, and the reception of evidence at meet12 ings at which there are present not less than three mem13 bers of the Commission. The Chairman of the Commission

14 shall call a meeting to organize the Commission within

15 thirty days after he and a majority of the members of the

16 Commission have been appointed.

17 (b) The Commission shall—

18 (1) be used for regular consultations between

19 the Government of the United States and the gov20 ernment of the Commonwealth of Guam on all mat21 ters affecting the relationship between them;

22 (2) study existing statutes and regulations af23 fecting the relationship between Guam and the Unit24 ed States;
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1 (3) review the policies and procedures of the

2 Federal agencies as such policies and procedures re3 late to the relationship between Guam and the

4 United States;

5 (4) compile data as may be necessary for the

6 conduct of the Commission’s work or for the imple7 mentation of this Act;

8 (5) draft such modifications in existing laws,

9 regulations, policies, and procedures as will, in the

10 judgment of the Commission, best serve to carry out

11 the purposes of the Commission or this Act;

12 (6) obtain, if possible, the modification of these

13 laws, regulations, and procedures by negotiation and

14 mediation, such as issues concerning land claims and

15 war claims by the people of Guam; and

16 (7) seek to obtain the maximum economic de17 velopment and political autonomy for the Common18 wealth of Guam without impairing United States na19 tional security interests. The heads of Federal de20 partments and agencies are authorized and directed

21 to furnish whatever assistance is requested by the

22 Commission, without reimbursement, except classi23 fied information directly related to national security

24 interests.
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1 (c) The Commission is authorized to appoint and fix

2 the compensation of an Executive Secretary and such

3 other additional personnel as may be necessary to enable

4 the Commission to carry out its functions without regard

5 to the Federal Property and Administrative Services Act

6 of 1949 and civil service laws, rules, and regulations, but

7 any Federal employee subject to those laws, rules, and reg8 ulations, who may be detailed to the Commission (which

9 detail is hereby authorized) shall retain his civil service

10 status without interruption or loss of status or privilege.

11 In addition, the Commission may enter into contracts in

12 order to carry out its mandate.

13 (d) The United States will bear the cost of the work

14 of the Commission.

15 SEC. 204. DELEGATION OF AUTHORITY.

16 The Congress hereby authorizes the President or his

17 designee to delegate to the Governor of Guam total or par18 tial performance of functions now vested in administrative

19 agencies in the Federal Government. The President or his

20 designee and the Governor of Guam shall consult from

21 time to time on the implementation of this provision.
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1 TITLE III—FOREIGN AFFAIRS

2 AND DEFENSE

3 SEC. 301. UNITED STATES AUTHORITY.

4 The United States shall have responsibility for an au5 thority with respect to matters relating to foreign affairs

6 and defense that affect the Commonwealth of Guam.

7 SEC. 302. CONSULTATION WITH GUAM.

8 (a) The United States agrees to consult with the

9 Commonwealth of Guam in advance of negotiations to10 ward any treaties or international agreements, including

11 Executive agreements, which affect the well-being of the

12 people of Guam.

13 (b) No military security zones shall be established

14 and no foreign military personnel shall be stationed on the

15 Island of Guam without approval of the government of the

16 Commonwealth except in time of declared war, and no

17 military bases will be established without consultation with

18 the Governor of the Commonwealth of Guam.

19 (c) The United States shall consult with the govern20 ment of the Commonwealth of Guam with respect to any

21 proposed plan to increase or decrease Department of De22 fense activities within the Commonwealth.
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1 SEC. 303. UNITED STATES CONSULAR AND TRADE ASSIST2 ANCE.

3 (a)(1) The United States shall assist and facilitate

4 the establishment by Guam of offices in the United States

5 and abroad.

6 (2) The United States shall assist the Commonwealth

7 of Guam to become a member or participate in appro8 priate regional and other international organizations to in9 clude, but not be limited to, the South Pacific Forum, the

10 regional organizations of the United Nations Specialized

11 agencies, and the Asian Development Bank. Under such

12 authority Guam shall be free to accept and grant financial

13 and technical assistance, to enter into bilateral and multi14 lateral agreements to promote joint ventures private and

15 public, exchange programs, and to become a party to all

16 agreements between and among foreign entities involving

17 regional and subregional affairs. The Commonwealth may

18 enter into agreements with sovereign states, and the politi19 cal entities resulting from the Trust Territory of the Pa20 cific Islands, relative to reciprocal trade and tax questions

21 and their application to the respective jurisdictions.

22 (b) The Government of the United States shall seek

23 to obtain from foreign countries favorable treatment for

24 exports from the Commonwealth of Guam and will encour25 age other countries to consider the Commonwealth of

26 Guam a developing territory.
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1 SEC. 304. NUCLEAR WASTE.

2 (a) The United States shall not utilize the water sur3 rounding the Commonwealth of Guam or the island for

4 dumping or storage of nuclear waste.

5 (b) The United States shall clean up and make safe

6 for human habitation all chemical waste dump sites used

7 by the military in the past and at present, and shall not,

8 at any time, use the island and the surrounding waters

9 of Guam as a depository for hazardous chemicals in the

10 future.

11 (c) The United States shall compensate, in a manner

12 to be decided by the District Court of Guam, any person

13 injured as a result of chemical, nuclear, or other hazard14 ous materials stored, used, or disposed of by agencies of

15 the United States Government in the Commonwealth of

16 Guam or its surrounding waters.

17 TITLE IV—COURTS

18 SEC. 401. JUDICIAL RELATIONSHIP OF GUAM TO THE

19 UNITED STATES.

20 The relations between the courts established by the

21 Constitution or laws of the United States and the local

22 courts of Guam with respect to appeals, certiorari, removal

23 of causes, the issuance of writs of habeas corpus, and

24 other matters or proceedings shall be governed by the laws

25 of the United States pertaining to the relations between

26 the courts of the United States, including the Supreme
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1 Court of the United States, and the courts of the several

2 States in such matters and proceedings.

3 SEC. 402. JURISDICTION OF DISTRICT COURT.

4 (a) The District Court of Guam established by sec5 tion 22 of the Organic Act of Guam, as amended, is con6 tinued by this Act as the ‘‘District Court of Guam.’’

7 (b) The District Court of Guam shall have the juris8 diction of a district court of the United States, including,

9 but not limited to, the diversity jurisdiction provided for

10 in section 1332 of title 28, United States Code, and that

11 of a bankruptcy court of the United States.

12 SEC. 403. APPLICABLE DISTRICT COURT RULES.

13 Where appropriate, the provisions of part II of title

14 18 and of title 28, United States Code, and notwithstand15 ing the provision in rule 54(a), Federal Rules of Criminal

16 Procedure, relating to the prosecution of criminal offenses

17 on Guam by information, the rules of practice and proce18 dure heretofore or hereafter promulgated and made effec19 tive by the Congress or the Supreme Court of the United

20 States pursuant to titles 11, 18, and 28, United States

21 Code, shall apply to the District Court of Guam and ap22 peals therefrom; except that the terms ‘‘Attorney for the

23 government’’ and ‘‘United States Attorney’’, as used in

24 the Federal Rules of Criminal Procedure, Federal Rules

25 of Civil Procedure and Federal Rules of Appellate Proce-
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1 dure shall, when applicable to cases arising under the laws

2 of Guam, including the Guam Commonwealth income tax,

3 mean the attorney general of Guam or such other person

4 or persons as may be authorized by the laws of Guam to

5 act therein.

6 SEC. 404. DISTRICT COURT JUDGE, UNITED STATES ATTOR7 NEY, MARSHAL.

8 (a) The President shall appoint, by and with the ad9 vice and consent of the Senate, a judge for the District

10 Court of Guam who shall hold office for the term of ten

11 years and until his successor is chosen and qualified unless

12 sooner removed by the President for cause. The judge

13 shall receive a salary payable by the United States which

14 shall be at the rate prescribed for judges of the United

15 States district courts. The chief judge of the Ninth Judi16 cial Circuit of the United States may assign a judge of

17 a local court of record, a judge of the High Court of the

18 Trust Territory of the Pacific Islands, a circuit or district

19 judge of the Ninth Circuit, or a recalled senior judge of

20 the District Court of Guam or of the District Court for

21 the Northern Mariana Islands, and the Chief Justice of

22 the United States may assign any other United States cir23 cuit or district judge with the consent of the judge so as24 signed and of the chief judge of his circuit, to serve tempo25 rarily as a judge in the District Court of Guam whenever
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1 it is made to appear that such an assignment is necessary

2 for the proper dispatch of the business of the court.

3 (b) The President shall appoint, by and with the ad4 vice and consent of the Senate, a United States attorney

5 and United States marshal for Guam to whose offices the

6 provisions of chapters 31 and 33 of title 28, United States

7 Code, respectively, shall apply.

8 (c) The judge of the District Court of Guam and the

9 United States attorney and marshal serving on the effec10 tive date of this section shall continue to hold their posi11 tions under this Act until the expiration of their current

12 terms of office.

13 TITLE V—TRADE

14 SEC. 501. GUAM-UNITED STATES FREE TRADE AREA.

15 (a) The Commonwealth of Guam will remain outside

16 the customs territory of the United States, and no duty,

17 tariff, or quota restrictions shall be imposed or collected

18 by the United States. Economic, trade, and commercial

19 relationships between the United States and the Common20 wealth of Guam of shall be conducted within the frame21 work of the free trade area between the United States and

22 the Commonwealth of Guam as established by subsection

23 (b).

24 (b) The Commonwealth of Guam shall not impose du25 ties, quotas, or other restrictions on products of the
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1 United States imported into Guam, nor shall the United

2 States impose duties, quotas, or other restrictions on

3 ‘‘products of Guam’’ imported into the United States, nor

4 shall the United States treat products of Guam as having

5 originated in any other country.

6 (c) The term ‘‘products of Guam’’ shall mean articles

7 that contain at least 30 percent value added in Guam.

8 Value added includes—

9 (1) all actual labor costs involved in the growth,

10 production, manufacture, or assembly of the specific

11 merchandise, including fringe benefits, on-the-job

12 training, and the cost of engineering supervisory,

13 quality control, and similar personnel;

14 (2) dies, molds, tooling, and depreciation on

15 machinery and equipment which are allocable to the

16 specific merchandise; and

17 (3) research, development, design, engineering,

18 and blueprint costs insofar as they are allocable to

19 the specific merchandise; and costs of inspecting and

20 testing the specific merchandise.

21 (d) The Commonwealth of Guam may impose, in22 crease, reduce, or eliminate duties and other restrictions—

23 (1) on products that originate in any area out24 side the customs territory of the United States and

25 that are imported into Guam; and
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1 (2) on exports from Guam, whether or not

2 products of Guam.

3 (e) The Governor of Guam shall make a certificate

4 that the origin of the products as defined in subsection

5 (c) above is the Commonwealth of Guam pursuant to the

6 provisions of this Act. An agent of the United States Cus7 toms Service stationed on Guam shall then perform such

8 customs inspections as are necessary for compliance with

9 this Act and the appropriate laws of the United States.

10 Upon completion of such inspections such products shall

11 enter the United States without further inspection by the

12 United States Customs Service.

13 (f) Nothing herein contained shall be construed to

14 have any effect on any obligations or benefits accruing to

15 the Commonwealth of Guam or the United States under

16 the Generalized System of Preferences.

17 (g) Except as provided for in subsection (b) above

18 the Trade and Development Act of 1974 shall continue

19 to apply to the Commonwealth of Guam.

20 TITLE VI—TAXATION

21 SEC. 601. MIRROR IMAGE TAX.

22 (a) The income tax laws in force in the United States

23 of America and those which may hereafter be enacted shall

24 be held to be likewise in force in Guam.
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1 (b) The income tax laws in force in Guam pursuant

2 to subsection (a) of this section shall be deemed to impose

3 a separate Commonwealth income tax, payable to the gov4 ernment of Guam, which tax is designated the ‘‘Guam

5 Commonwealth Income Tax.’’

6 (c) The administration and enforcement of the Guam

7 Commonwealth income tax shall be performed pursuant

8 to the laws of Guam. Any function needful to the adminis9 tration and enforcement of the income tax laws in force

10 in Guam pursuant to subsection (a) of this section shall

11 be performed by any duly authorized officer or employee

12 of the government of Guam.

13 (d)(1) The income tax laws in force in Guam pursu14 ant to subsection (a) of this section include, but are not

15 limited to, the following provisions of the Internal Revenue

16 Code of 1954, where not manifestly inapplicable or incom17 patible with the intent of this section: Subtitle A (not in18 cluding chapter 2 and section 931); chapters 24 and 25

19 of subtitle C, with reference to the collection of income

20 tax at source on wages; and all provisions of subtitle F

21 which apply to the income tax, including provisions as to

22 crimes, other offenses and forfeitures contained in chapter

23 75. For the period after 1950 and prior to the effective

24 date of the repeal of any provision of the Internal Revenue

25 Code of 1939 which corresponds to one or more of those
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1 provisions of the Internal Revenue Code of 1954 which

2 are included in the income tax laws in force in Guam pur3 suant to subsection (a) of this section, such income tax

4 laws include, but are not limited to, such provisions of the

5 Internal Revenue Code of 1939.

6 (2) The Governor or his delegate or other official duly

7 authorized to act under the laws of Guam shall have the

8 same administrative and enforcement powers and rem9 edies with regard to the Commonwealth of Guam income

10 tax as the Secretary of the Treasury and other United

11 States officials of the executive branch have with respect

12 to the United States income tax. Rules and regulations

13 required for enforcement of the Commonwealth of Guam

14 income tax shall be prescribed pursuant to the laws of

15 Guam. The Governor or his delegate or other official duly

16 authorized to act under the laws of Guam shall have au17 thority to issue, from time to time, in whole or in part,

18 the text of the income tax laws in force in Guam pursuant

19 to subsection (a) of this section.

20 (e) In applying the Commonwealth of Guam income

21 tax the income tax laws in force in Guam pursuant to sub22 section (a) of this section, except where it is manifestly

23 otherwise required, the applicable provisions of the Inter24 nal Revenue Code of 1954 and 1939 shall be read so as

25 to subtitle ‘‘Guam’’ for ‘‘United States,’’ ‘‘Governor or his
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1 delegate or other official duly authorized to act under the

2 laws of Guam’’ for ‘‘Secretary or his delegate,’’ ‘‘Governor

3 or his delegate or other official duly authorized to act

4 under the laws of Guam’’ for ‘‘Commissioner of Internal

5 Revenue’’, and ‘‘Collector of Internal Revenue’’ for ‘‘Col6 lector of Internal Revenue,’’ ‘‘District Court of Guam’’ for

7 ‘‘District Court’’ and with other changes in nomenclature

8 and other language, including the omission of inapplicable

9 language, where necessary to effect the intent of this sec10 tion.

11 SEC. 602. ENFORCEMENT INSTITUTIONS.

12 (a) Any act or failure to act with respect to the Guam

13 Commonwealth income tax which constitutes a criminal

14 offense under chapter 75 of subtitle F of the Internal Rev15 enue Code of 1986, or the corresponding provisions of the

16 Internal Revenue Code of 1939, as included in the income

17 tax laws in force in Guam pursuant to this section, shall

18 be an offense against the government of Guam and may

19 be prosecuted in the name of the government of Guam

20 by the appropriate officers thereof.

21 (b) The government of Guam shall have a lien with

22 respect to the Guam Commonwealth income tax in the

23 same manner and with the same effect and subject to the

24 same conditions, as the United States has a lien with re25 spect to the United States income tax. Such lien in respect
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1 of the Guam Commonwealth income tax shall be enforce2 able in the name of and by the government of Guam.

3 Where filing of a notice of lien is prescribed by the income

4 tax laws in force in Guam pursuant to subsection (a) of

5 this section, such notice shall be filed in the Office of the

6 Clerk of the District Court of Guam or such other court

7 as the Guam legislature may provide.

8 (c)(1) The District Court of Guam shall have exclu9 sive original jurisdiction over all judicial proceedings in

10 Guam, both criminal and civil, regardless of the degree

11 of the offense or of the amount involved, with respect to

12 the Guam Commonwealth income tax.

13 (2) Suits for the recovery of any Guam Common14 wealth income tax alleged to have been erroneously or ille15 gally assessed or collected, or of any penalty claimed to

16 have been collected without authority, or of any sum al17 leged to have been excessive or in any manner wrongfully

18 collected, under the income tax laws in force in Guam,

19 pursuant to subsection (a) of this section, may, regardless

20 of the amount of claim, be maintained against the govern21 ment of Guam subject to the same statutory requirements

22 as are applicable to suits for the recovery of such amounts

23 maintained against the United States in the United States

24 District Court of Guam with respect to the United States

25 income tax. When any judgment against the government
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1 of Guam under this paragraph has become final, the Gov2 ernor shall order the payment of such judgments out of

3 any unencumbered funds in the treasury of Guam.

4 (3) Execution shall not issue against the Governor

5 or any officer or employee of the government of Guam on

6 a final judgment in any proceeding against him for any

7 acts or for the recovery of money exacted by or paid to

8 him and subsequently paid into the treasury of Guam, in

9 performing his official duties under the income tax laws

10 in force in Guam pursuant to subsection (a) of this sec11 tion, if the court certifies that probable cause existed, or

12 such officer or employee acted under the direction of the

13 Governor or his delegate or other official duly authorized

14 to act under the laws of Guam. When such certificate has

15 been issued, the Governor shall order the payment of such

16 judgment out of any unencumbered funds in the treasury

17 of Guam.

18 (4) A civil action for the collection of the Guam Com19 monwealth income tax, together with fines, penalties, and

20 forfeitures, or for the recovery of any erroneous refund

21 of such tax, may be brought in the name of and by the

22 Government of Guam in the District Court of Guam or

23 in any district court of the United States or in any court

24 having the jurisdiction of a district court of the United

25 States.
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1 (5) The jurisdiction conferred upon the District

2 Court of Guam by this subsection may be subject to trans3 fer to any local court by the legislature of Guam.

4 SEC. 603. REBATE OF TAXES.

5 The government of the Commonwealth of Guam may

6 by local law provide for the rebate or reduction of any

7 taxes received by it in order to assist new industries com8 ing to Guam or to assist Guam’s economic development.

9 SEC. 604. GUAM INCOME TAX AUTHORITY.

10 (a) The Commonwealth of Guam shall have the power

11 to determine under the laws of Guam the nature and

12 amount of taxes imposed upon the income and property

13 of persons within its jurisdiction, from whatever source de14 rived.

15 (b) The income tax established in section 601 of this

16 Act shall be repealed one year following certification by

17 the Chief Executive of Guam that Guam has enacted into

18 law a comprehensive local income tax to replace that set

19 forth in section 601. Upon this repeal the income tax laws

20 of the United States, except for chapters 2 and 21 of the

21 Internal Revenue Code of 1954, shall not be applicable

22 to Guam or to the persons within the jurisdiction of Guam

23 who have met their tax obligations imposed by the laws

24 of Guam.
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1 SEC. 605. BONDS TAX EXEMPTION.

2 All bonds or other obligations issued by the Common3 wealth of Guam or by its authority shall be exempt, as

4 to principal and interest, from taxation by the Government

5 of the United States, or by any State or Territory or any

6 political subdivision thereof, or by the District of Colum7 bia.

8 TITLE VII—IMMIGRATION

9 SEC. 701. GUAM IMMIGRATION AUTHORITY.

10 (a) The Congress recognizes that Guam is a small

11 and densely populated insular commonwealth with limited

12 infrastructure and resources, that it is that portion of the

13 United States which is in closest proximity to nations of

14 Asia and the Pacific which supply a large proportion of

15 the immigrants coming to the United States, that signifi16 cant numbers of such immigrants have in recent years

17 chosen to make Guam their home, and that the admission

18 of substantial additional numbers of immigrants to Guam

19 threatens to produce a severe impact on the limited infra20 structure, health, education, housing, and other services

21 available in Guam. Congress therefore further recognizes

22 that there is a necessary and compelling need henceforth

23 to limit the number of persons permitted to immigrate to

24 Guam, and therefore the Commonwealth of Guam shall

25 have the authority to control entry of all aliens into the
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1 Commonwealth of Guam to include the admission, exclu2 sion, and expulsion of such aliens.

3 (b) The Immigration and Nationality Act, and Fed4 eral regulations applicable thereto, shall remain applicable

5 to Guam for two years from enactment of this Act. The

6 Commonwealth of Guam shall, within the two-year period

7 of this subsection, enact a comprehensive law on immigra8 tion for Guam, such law to become effective at the end

9 of the said two-year period. Enactment of local law by the

10 legislature of Guam under this authority, and the actions

11 of the Commonwealth of Guam pursuant to such authority

12 shall be duly coordinated with the Immigration and Na13 tionality Service, the Department of Labor, and the De14 partment of State.

15 (c)(1) Such actions by the Commonwealth of Guam

16 shall not impair the free movement of United States citi17 zens to and from Guam.

18 (2) Such authority shall not include naturalization of

19 aliens for United States citizenship.

20 (3) The Governor of Guam shall continue to have the

21 authority to issue United States passports within existing

22 regulations.

23 (4) Entry of aliens into Guam under the authority

24 of subsection (a) above, shall not affect, either favorably

25 or unfavorably, an alien’s entry to any other part of the
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1 United States. This title shall not preclude a person who

2 previously has been lawfully admitted for permanent resi3 dence in the United States and who is otherwise admissi4 ble from being readmitted in Guam upon return to the

5 United States.

6 (d) Guam shall not be considered as a port of entry

7 for the entrance into the United States of aliens lawfully

8 admitted for permanent residence into the United States

9 except as provided for in subsection (b) or in those cases

10 where the Governor of Guam has made labor determina11 tions.

12 SEC. 702. GUAM-ONLY VISA.

13 United States consular officials, and other officials

14 authorized to issue visas for entry into the United States,

15 are authorized to issue visas for travel only to the Com16 monwealth of Guam for any alien seeking to enter Guam

17 as a nonimmigrant in order to encourage investors and

18 tourists to come to Guam. Regulations governing the issu19 ance of such visas shall be coordinated with the Governor

20 of Guam. Such regulations shall consider the points of ori21 gin, duration of permitted stay, the means by which the

22 aliens could alter visas to permit entry into the United

23 States, and other appropriate conditions to assure the reg24 ulation serves the best interests of the Commonwealth of

25 Guam. The United States and the Commonwealth of
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1 Guam shall adopt appropriate measures for the implemen2 tation and the enforcement of this section upon or after

3 entry of the aliens into Guam.

4 TITLE VIII—LABOR

5 SEC. 801. FEDERAL EMPLOYMENT.

6 In all vacancies in the Federal civil service occurring

7 in Guam, residents of Guam possessing the requisite

8 standards of age, health, character, education, knowledge,

9 and experience shall be given preference over transfers of

10 persons from off Guam or the recruiting of persons from

11 outside Guam.

12 SEC. 802. GUAM LABOR LAWS.

13 Except and to the extent prohibited by Congress, the

14 Commonwealth of Guam shall have authority to enact and

15 enforce all laws regulating or affecting employment in the

16 Commonwealth. All applicable laws of the United States

17 which regulate employment on Guam on the effective date

18 of this Act shall remain applicable to Guam until replaced

19 as to their applicability to Guam by duly enacted law of

20 the Guam Legislature.

21 TITLE IX—TRANSPORTATION

22 AND TELECOMMUNICATIONS

23 SEC. 901. MARITIME SHIPPING.

24 (a) No provision of the laws of the United States,

25 including, without limitation, the vessel documentation
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1 laws of the United States, shall apply to prevent the

2 United States registration of, and use of, any foreign-built

3 vessel (including vessels engaged in towing, barges,

4 dredges, vessels or boats leased, rented, or chartered to

5 another for any use, including, without limitation, vessels

6 used to take out chartered fishing and diving parties or

7 sightseeing tours) for any purpose whatsoever within the

8 internal waters, harbors, territorial sea and adjacent Ex9 clusive Economic Zone around Guam.

10 (b) The shipment of fish or fish products from Guam

11 to any coastwise point of the United States shall not be

12 subject to the coastwise laws of the United States.

13 (c) The application of the coastwise laws of the

14 United States to Guam pursuant to 46 U.S.C. 883 shall

15 be periodically examined by the Commission to determine,

16 mutually, the desirability of the continued applicability of

17 such laws to Guam. Such determination by the Commis18 sion shall be based solely on the criteria of whether such

19 laws or any or a part thereof as applied to Guam constrain

20 Guam’s economic development and, if such a determina21 tion is made, the Commission shall recommend such laws

22 should not continue to apply to Guam: Provided, That so

23 long as the coastwise laws are applicable to Guam, the

24 United States Government shall be responsible for ensur25 ing adequate and reliable cargo service between Guam and
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1 the United States as determined mutually by the Commis2 sion.

3 SEC. 902. AIRLINES.

4 (a) The Governor of Guam shall have the authority

5 to sponsor any qualified air service carrier to come to

6 Guam subject only to presidential consultation concerning

7 articulated foreign policy and national defense interests of

8 the United States. The Commonwealth of Guam shall be

9 exempt from all bilateral treaties between the United

10 States and foreign states with respect to scheduling and

11 to technical specifications or aircraft, other than safety re12 quirements, for foreign or United States charter passenger

13 flights to and from Guam where such flights originate

14 from foreign jurisdictions. This provision shall not be ap15 plied in such a manner as to impair regularly scheduled

16 passenger and cargo flights from any of the several United

17 States States and Territories to and from Guam.

18 (b) The Commonwealth of Guam shall remain an ‘‘el19 igible point’’ for purposes of being ensured essential air

20 transportation under applicable provisions of the Federal

21 Aviation Act of 1958, as amended by Public Law 98–213,

22 section 10, with passenger and other service to be sched23 uled to provide regular and satisfactory delivery of postal

24 mail and cargo to and from the United States.
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1 (c) In addition to any other requirement in compli2 ance with Federal law for new, additional, or changed

3 routes, United States domestic air carriers shall obtain the

4 concurrence of the Governor of Guam on any application

5 filed for such service to Guam.

6 SEC. 903. TELECOMMUNICATIONS.

7 The Commonwealth of Guam shall be defined as do8 mestic for the purposes of setting rates in telecommuni9 cations by the Federal Communications Commission.

10 TITLE X—LAND, NATURAL

11 RESOURCES, AND UTILITIES

12 SEC. 1001. AUTHORITY OVER LAND AND RESOURCES.

13 (a) The government of the Commonwealth of Guam

14 shall have power of eminent domain over property within

15 the Commonwealth in accord with the constitution of

16 Guam.

17 (b) The Commonwealth of Guam shall have jurisdic18 tion over all living and nonliving natural resources of the

19 seabed, subsoil, tidelands, and adjacent territorial waters,

20 as defined by the United States law, of the Island of

21 Guam. The Commonwealth shall exercise rights to deter22 mine the conditions, including pollution control, and terms

23 of all scientific research, management, exploration, and ex24 ploitation of all ocean resources and all sources of energy

25 and prevention of pollution within the 200-mile Exclusive
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1 Economic Zone, including pollution originating outside the

2 zone that poses a threat within the zone.

3 (c) The United States may, upon written notice to

4 the government of the Commonwealth of Guam, acquire

5 for public purposes in accordance with Federal laws and

6 procedures, any interest in real property in the Common7 wealth only by voluntary means, under such terms and

8 conditions as may be negotiated by the parties. The Unit9 ed States will continue to recognize and respect the scar10 city and special importance of land in the Commonwealth

11 of Guam. If the United States must acquire any interest

12 in real property, it will follow the policy of seeking to ac13 quire only the minimum area necessary to accomplish the

14 public purpose for which the real property is required, of

15 seeking only the minimum interest in real property nec16 essary to support such public purpose, and of seeking first

17 to satisfy its requirement by acquiring an interest in pub18 lic rather than private real property. No interest in real

19 property on Guam will be acquired by the United States

20 unless duly authorized by the Congress of the United

21 States and for which appropriations are available.

22 (d) The United States agrees not to exercise within

23 the Commonwealth the power of eminent domain except

24 in time of war and then only to the extent necessary and

25 in compliance with applicable United States and Common-
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1 wealth of Guam laws, and with full recognition of due

2 process required by the Constitutions of Guam and the

3 United States.

4 (e) The Commonwealth of Guam is exempt from the

5 Federal regulations governing the transfer or sale of ex6 cess Federal real property. All excess real properties of

7 the United States on the Island of Guam released after

8 establishment of the Commonwealth will be conveyed in

9 fee simple to the government of the Commonwealth of

10 Guam without any condition, limitation or reversion clause

11 in said conveyance.

12 (f) All land heretofore transferred to the government

13 of Guam by the United States are released from any and

14 all provisions limiting the use of such land, and are con15 veyed in fee simple.

16 SEC. 1002. TRANSFER OF EXCESS FEDERAL REAL PROP17 ERTY.

18 All real property, including undeveloped land and de19 veloped recreational facilities, controlled or owned by any

20 United States military service or Federal agency on Guam

21 and not necessary for direct and continuous operational,

22 logistical, or security use as a military facility or other

23 Federal function shall be transferred as excess Federal

24 real property to the government of Guam: Provided, That

25 all national parks, historical sites, monuments, and ceme-
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1 teries shall be exempt from this provision. Such transfers

2 will be, whenever possible, at no cost to the people of

3 Guam, or, when appropriate, at cost no higher than the

4 valuation of the property at the time of original acquisition

5 by the Federal authority, regardless of any subsequent al6 terations or additions to the property. Final determination

7 of which Federal real property is excess to Federal needs,

8 and the authority to mandate prompt and fair transfer

9 to the government of Guam by the Federal proprietor,

10 shall be with the Joint Commission after consultations

11 with the proprietor.

12 SEC. 1003. ACCESS TO FEDERAL PROPERTY.

13 (a) All recreational facilities, and all historical and

14 archaeological sites on real property retained under Fed15 eral, civil, or military authority shall be open to access and

16 use by the residents of Guam so long as military security

17 requirements are not compromised.

18 (b) Except where prevented by military security re19 quirements, easements for roadways or other means of

20 public access through property retained under Federal,

21 civil, or military authority shall be granted the government

22 of Guam when such easements constitute the only prac23 ticable means of land access by the government of Guam

24 or the public to localities within the jurisdiction of the gov25 ernment of Guam.
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1 (c) The Joint Commission shall determine, after con2 sultation with the general proprietor, which Federal rec3 reational facilities and which easements over Federal prop4 erty shall be open to the government of Guam and to the

5 general public on Guam and the manner of access.

6 SEC. 1004. AUTHORITY OVER UTILITIES.

7 Within ninety days after the enactment of this Act,

8 the United States shall transfer to the Commonwealth of

9 Guam all rights, title, and interest possessed by the

10 United States in the island’s power, water, sewer, and

11 other utility systems, except for those portions of the sys12 tems which are located within the confines of property

13 owned by the United States and which are used solely for

14 the purposes of the United States, and which do not serve

15 or impact upon the normal operations of the island’s util16 ity system. The government of the Commonwealth of

17 Guam may decline to accept any portion of such utilities

18 which it believes would act as a detriment to effective use

19 of the utilities it owns. The United States shall provide

20 access for the Commonwealth of Guam, or its agents, to

21 all utilities and transmission lines which the Common22 wealth owns on Federal property on Guam.
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1 TITLE XI—UNITED STATES

2 FINANCIAL ASSISTANCE

3 SEC. 1101. RETURN OF TAXES AND FEES.

4 All customs duties and Federal income taxes derived

5 from Guam, the proceeds of all taxes collected under the

6 internal revenue laws of the United States on articles pro7 duced in Guam and transported to the United States, its

8 Territories, or possessions, or consumed in Guam, and the

9 proceeds of any other taxes which may be levied by the

10 Congress on the inhabitants of Guam (including, but not

11 limited to, compensation paid to members of the Armed

12 Forces and pensions paid to retired civilian military em13 ployees of the United States, or their survivors, who are

14 residents of, or who are domiciled in, Guam), and all quar15 antine, passport, immigration, and naturalization fees col16 lected in Guam shall be covered into the treasury of Guam

17 and held in account for the government of Guam in ac18 cordance with the annual budgets except that nothing in

19 this Act shall be construed to apply to any tax imposed

20 by chapter 2 or 21 of the Internal Revenue Code of 1954.

21 SEC. 1102. EQUAL FINANCE FOR GUAM CITIZENS WITH

22 STATES.

23 The laws of the United States providing Federal ben24 efits and financial assistance and which have a general

25 application to the several States shall be applicable to
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1 Guam, including section 228 or title II and title XVI of

2 the Social Security Act (Supplemental Security Income).

3 The formula for granting such financial assistance to

4 Guam and its residents shall be the same as the formula

5 applied to the several States and their residents unless

6 such formula cannot, on its face, be applied to Guam or

7 it is specifically stated to the contrary in this Act.

8 SEC. 1103. RETURN OF ECONOMIC ZONE FEES.

9 The Commonwealth shall have paid to the treasury

10 of Guam all licensing and other fees obtained by permit11 ting foreign vessels to fish or other exploitation of the 200-

12 mile Exclusive Economic Zone of Guam.

13 SEC. 1104. FEDERAL PAYMENT.

14 (a) The Governor of Guam, in preparing an annual

15 budget for the government of the Commonwealth of

16 Guam, shall develop meaningful expenditure and revenue

17 comparisons based on data supplied by the Bureau of the

18 Census and other independent, reliable sources and iden19 tify elements of cost and benefits to Guam which result

20 from the unusual role of Guam as one of the Nation’s

21 principal military bastions in the Far East despite its

22 small size. The results of the studies conducted by the

23 Governor under this subsection shall be made available to

24 the Guam legislature and to the Federal Office of Manage25 ment and Budget for their use in reviewing and revising
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1 the Governor’s request with respect to the level of appro2 priation for the annual Federal payment to the Common3 wealth of Guam. Such Federal payment should operate to

4 encourage efforts on the part of the government of Guam

5 to maintain and increase its level of revenues and to seek

6 such efficiencies and economies in the management of its

7 programs as are possible.

8 (b) The Governor, in studying and identifying the

9 costs and benefits to Guam brought about by its role in

10 the nation’s national security, should to the extent fea11 sible, among other elements, consider—

12 (1) revenues unobtainable because of the rel13 ative lack of taxable commercial and industrial prop14 erty;

15 (2) revenues unobtainable because of the rel16 ative lack of taxable business income;

17 (3) potential revenues that would be realized if

18 exemptions from Guam taxes were eliminated;

19 (4) net costs, if any, after considering other

20 compensation for tax base deficiencies and direct

21 and indirect taxes paid, of providing services to or22 ganizations and corporate offices doing business only

23 with the Defense Department;

24 (5) recurring and nonrecurring costs of unreim25 bursed services to the Defense Department;
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1 (6) recurring and nonrecurring costs of unreim2 bursed services rendered Guam by the Defense De3 partment; and

4 (7) relative tax burden on Guam residents com5 pared to that of residents in other jurisdictions in

6 the Pacific.

7 (c) The Governor shall submit his request, with re8 spect to the amount of an annual Federal payment, to the

9 Guam legislature. The Guam legislature shall by act ap10 prove, disapprove, or modify the Governor’s request. After

11 the action of the legislature, the Governor shall, by De12 cember 1 of each calendar year, in accordance with the

13 provisions in the Budget and Accounting Act, 1921 (31

14 U.S.C. 2), submit such request to the President for sub15 mission to the Congress. Each request regarding an an16 nual Federal payment shall be submitted to the President

17 seven months prior to the beginning of the fiscal year for

18 which such request is made and shall include a request

19 for an annual Federal payment for the next following fis20 cal year.

21 SEC. 1105. TRANSITION ASSISTANCE TO THE COMMON22 WEALTH.

23 The Government of the United States in order to as24 sist Guam to make the political and economic transition
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1 to Commonwealth agrees to assist the Commonwealth of

2 Guam as follows:

3 (1) The United States agrees to—

4 (A) finance the costs of institutional

5 changes connected with the change in Guam’s

6 political relationship with the United States, to

7 include staff, contracts, and referendum costs

8 of the Guam Commission on Self-Determina9 tion;

10 (B) help meet the capital needs of Guam,

11 in accordance with the following section, nec12 essary to Guam’s long-term, self-sustaining de13 velopment; and

14 (C) establish an economic development

15 fund to assist expansion of the private sector.

16 (2) There is hereby authorized such sums as

17 may be necessary to implement a long-term capital

18 improvement program approved by the Congress

19 permitting the Commonwealth of Guam to establish

20 an infrastructure base adequate for development of

21 the private sector and to strengthen the utility of

22 Guam for United States national security purposes.

23 (3) Guam shall submit a plan for Congressional

24 approval showing the total amounts proposed, the

25 distribution of funds by projects, phases, or pro-
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1 grams with an assessment of needs, costs, benefits,

2 and provision of local funds where available. The

3 capital improvement plan shall take into account all

4 related economic development projects and plans by

5 the Commonwealth of Guam.

6 (4) There is hereby authorized a revolving fund

7 to establish an Economic Development Fund on

8 Guam with authority to assist in the financing of the

9 private sector needs of Guam in its efforts to achieve

10 a higher standard of living for its people as members

11 of the American community and to develop the eco12 nomic resources needed to meet the financial respon13 sibilities of local self-government. To this end, the

14 Economic Development Fund is authorized to pro15 vide financial and other assistance to increase in16 vestments (including loans, tax incentives, guaran17 tees and equity capital) and to start or expand com18 mercial businesses on Guam in order to provide em19 ployment and ownership opportunities for the resi20 dents of Guam. Participation by private banks and

21 savings and loan institutions in the Economic Devel22 opment Fund shall be encouraged. Funds shall be

23 made available to the Economic Development Fund

24 by Congress after the following conditions have been

25 met:
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1 (A) The submission of a set of procedures

2 to Congress for the participation of private

3 lending institutions and for the processing of

4 applications for assistance, indicating the role

5 of the Economic Development Fund’s staff, out6 side consultants, and board review, and to guide

7 reviewers in making assistance and determining

8 eligibility.

9 (B) Submission of an economic develop10 ment plan, to be updated annually, by the Gov11 ernor of Guam to Congress, showing the pro12 posed amount, the proposed distribution of the

13 funds, and the terms on which the funds will

14 be made available. Such plan will take into ac15 count any capital improvement projects and

16 other programs related to economic develop17 ment. The funds granted to the Economic De18 velopment Fund shall be a revolving fund, avail19 able to the Economic Development Fund until

20 expended.

21 (C) The Economic Development Fund

22 shall be headed by a five-member Board of Di23 rectors with financial experience for fixed terms

24 and selected by the Governor of Guam. The

25 Economic Development Fund shall issue a pub-
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1 lic and audited report annually, setting forth

2 the administrative and programmatic develop3 ments for the year with full disclosure of the

4 utilization of its funds, the recipients of its as5 sistance, and the applications in process.

6 TITLE XII—TECHNICAL AMEND7 MENTS AND INTERPRETA8 TION

9 SEC. 1201. INTERPRETATION AND JURISDICTION.

10 (a) It is the intention of Congress that this Act pro11 vide complete internal self-government for the Common12 wealth of Guam and, to that end, that this Act be inter13 preted liberally to accomplish that purpose.

14 (b) When ruling upon the laws of the Commonwealth,

15 the courts of the United States shall give the same def16 erence to the laws of the Commonwealth as they give to

17 the laws of the several States. Jurisdiction to interpret the

18 provisions of this Act is vested in appropriate courts of

19 the United States and in the local courts of Guam.

20 SEC. 1202. CONTINUED EFFECTIVENESS OF LOCAL LAWS.

21 The laws of Guam in force on the date of enactment

22 of this Act, except as amended by this Act, are hereby

23 continued in force, subject to modification or repeal by the

24 legislature of Guam.
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1 SEC. 1203. ACTS REPEALED AND CONTINUED.

2 (a) All laws or parts of laws inconsistent with this

3 Act are hereby repealed to the extent of such inconsist4 ency.

5 (b) Upon the enactment of this Act, the following sec6 tions of the Organic Act of Guam (Act of August 1, 1950,

7 64 Stat. 384), as amended, are repealed: Sections 1, 2,

8 and 3; fourth sentence of section 11, sections 25, 27, 33,

9 and section 34.

10 (c) Upon the effective date of the constitution adopt11 ed by the people of Guam, the following provisions of the

12 Organic Act of Guam (Act of August 1, 1950, 64 Stat.

13 384), as amended, and in effect at that time, are repealed:

14 Sections 5(a) through (t), 6, 7, 8, 9, 9–A, 10; the first

15 three sentences of section 11; sections 12, 13, 14, 15, 16,

16 17, 18, 19, 20, 21, 22, 22A, 22B, 22C, 22D, 24, 26, 29,

17 30, and section 31.

18 (d) The following sections of the Organic Act of

19 Guam (Act of August 1, 1950, 64 Stat. 384), as amended,

20 shall continue in force and shall be deemed to be a part

21 of this Act: Section 5(u), beginning at the fifth sentence;

22 all the remainder of sections 11, 21–A, 24–A, section 28

23 as modified by article 10 of this Act; 32, and section 35.

24 (e) Public Law 94–584 (90 Stat. 2899), as amended,

25 is repealed as it affects Guam.
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1 SEC. 1204. EFFECTIVE DATE OF THE GUAM COMMON2 WEALTH ACT.

3 This Act, upon approval by Congress, shall be sub4 mitted to the registered voters of Guam for ratification

5 through a plebiscite to be held in accordance with the laws

6 of Guam. This Act will become effective upon the approval

7 of this Act by a majority of the voters who participate

8 in such plebiscite, and at that time, except as provided

9 in section 1203 of this Act, the Organic Act of Guam,

10 August 1, 1950, 64 Stat. 384, shall be repealed.

Æ