I
103D CONGRESS
1ST SESSION
H. R. 154
To provide for the self-determined political, social, and economic development
of the insular areas, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. DE LUGO introduced the following bill; which was referred to the
Committee on Natural Resources
A BILL
To provide for the self-determined political, social, and eco-
nomic development of the insular areas, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—FINDINGS, PURPOSES,
POLICY
SEC. 101. SHORT TITLE.
This Act may be cited as the ‘‘Insular Areas Policy
Act’’.
SEC. 102. FINDINGS.
The Congress finds that—
(1) the United States does not have a clearly
defined policy regarding the United States insular
areas: the territories of American Samoa, Guam,
and the Virgin Islands and the Commonwealths of
the Northern Mariana Islands and Puerto Rico;
(2) the Federal Government has often failed to
consider the implications for, effects on, and poten-
tial of the insular areas in the formulation and con-
duct of domestic and foreign policy to the detriment
of both the insular areas and the attainment of the
objectives of Federal policy;
(3) Federal policies and programs are often in-
appropriately applied to the insular areas and should
be adapted to the unique circumstances of these
areas;
(4) the Americans of the United States insular
areas lack power in the Federal decision-making
process;
(5) the needy in the United States insular areas
are inequitably treated in some Federal programs
and public services for the residents of the insular
areas often compare unfavorably with services en-
joyed by the residents of the several States, yet the
areas face substantial social problems;
(6) the economic development of the insular
areas has not attained its full potential due to limi-
tations imposed by such factors as location, natural
resources, infrastructure, population, availability of
capital, and unintentionally imposed Federal con-
straints and, in some cases, is precariously based;
(7) the present Federal organizational arrange-
ments for making policy with regards to, liaison
with, providing assistance to, and administering pro-
grams in the insular areas are not adequate for—
(A) developing and implementing policies
with respect to insular areas, including adapt-
ing policies to the special requirements of each
area and modifying the application of Federal
programs, laws, and regulations accordingly;
(B) coordinating the delivery of Federal
programs in and assistance to these areas;
(C) fostering the social, economic, and po-
litical development of the insular areas; and
(D) being responsive to the Congress in
the discharge of its constitutional responsibil-
ities with regard to the insular areas; and
(8) the objectives of the trusteeship agreement
for the Territory of the Pacific Islands have not
been fulfilled.
SEC. 103. PURPOSES.
The purposes of this Act are to—
(1) provide for the development and implemen-
tation of Federal policy regarding the insular areas
of or associated with the United States; and
(2) establish a Federal executive organization to
serve as a liaison between the executive branch and
the governments of the insular areas; coordinate
Federal actions in a manner which recognizes the
special needs in and of the insular areas, provide the
assistance necessary in the insular areas to achieve
the objectives of Federal policy and foster the social,
economic, and political development of the areas;
and ensure that the Congress receives the informa-
tion necessary to discharge its constitutional respon-
sibilities regarding the insular areas.
SEC. 104. POLICY.
Pursuant to its authority and responsibility under the
Constitution regarding the insular areas, the Congress
states that it is the policy of the Federal Government to
promote, to the fullest extent possible, the self-determined
political, social, and economic development of the insular
areas, consistent with local cultural values and the status
of the areas, to the levels enjoyed by the several States
and to recognize the areas’ unique character in the exten-
sion of Federal laws, programs, and regulations.
TITLE II—COUNCIL ON INSULAR
AFFAIRS
SEC. 201. COUNCIL.
(a) There is hereby established a Council on Insular
Affairs composed of (1) an official designated by the heads
of all executive departments and agencies, the Director of
the Office of Management and Budget, and the United
States Trade Representative; and (2) the President’s prin-
cipal assistants for National Security Affairs and Domes-
tic Policy, who shall serve as co-chairmen.
(b) The Council shall meet at such times as either
of the co-chairmen may request, but not less often than
once a year, to oversee the development and implementa-
tion of the policy set forth in title I of this Act, its coordi-
nation with other aspects of the foreign and domestic pol-
icy of the United States, make such recommendations to
the President, executive departments and agencies, or the
Congress as may be necessary for these purposes, and con-
sider the annual report to the Congress required by section
205 of this Act.
SEC. 202. STAFF.
(a)(1) The Council shall be assisted by a staff located
within the Executive Office of the President, which shall
advise the President and the Council on the development
and implementation of the policy set forth in title I of this
SEC. 203. AUTHORITY.
The Council, directly or through its Director, shall
exercise on behalf of the President—
(1) the responsibilities of the Assistant Sec-
retary of the Interior, Territorial and International
Affairs under Orders of the Secretary of the Interior
3046 (February 14, 1980) and 3142 (October 15,
1990), and all statutory or other authority for ad-
ministration of insular affairs, except that the Sec-
retary of the Interior shall, subject to policy guid-
ance provided by the Council, continue to be respon-
sible for the administration of grants to territorial
governments through the Office of Insular Assist-
ance established pursuant to section 208 of this Act
and the audit responsibility regarding Federal funds
transferred to the Office of the Inspector General,
Department of the Interior pursuant to Public Law
97–357 (96 Stat. 1705) shall continue to be exer-
cised by the Inspector General; except that, if the
President deems it advisable, the audit responsibility
of the Inspector General regarding insular receipts
and expenditures shall be further transferred to
auditors in the insular areas if the Director deter-
mines that the insular government concerned has es-
tablished an independent and adequately funded
local audit capability;
(2) the responsibility for American Samoa pres-
ently exercised by the Secretary of the Interior pur-
suant to Executive Order No. 10264 of June 29,
1951;
(3) the responsibility for Guam presently exer-
cised by the Secretary of the Interior pursuant to
the Organic Act of Guam, as amended (64 Stat.
384);
(4) the responsibility for the Northern Mariana
Islands presently exercised by the Secretary of the
Interior pursuant to Executive Order No. 12572 of
November 3, 1986;
(5) the responsibility for Puerto Rico assigned
to the Office of the President pursuant to the
Memorandum of the President concerning the Com-
monwealth of Puerto Rico of November 30, 1992;
(6) the responsibility for the Territory of the
Pacific Islands presently exercised by the Secretary
of the Interior pursuant to Executive Order 11021
of May 8, 1962; and
(7) the responsibility for the Virgin Islands
presently exercised by the Secretary of the Interior
pursuant to the Revised Organic Act of the Virgin
Islands, as amended (69 Stat. 497).
SEC. 204. RESPONSIBILITIES.
The Director shall have the responsibility to—
(1) provide the Congress, the President, the
Council, and Federal agencies with such information
and advice as may be necessary to structure Federal
programs, laws, or regulations affecting any of the
insular areas to the political, social, cultural, and
economic conditions of such areas so as to further
the objectives of such programs, laws, or regulations
and the policy set forth in title I of this Act and to
prevent or reduce any adverse effect upon such area;
(2) inform the local governments of the insular
areas of Federal actions which would affect such
area and solicit the comments and recommendations
of such local governments and provide those com-
ments and recommendations together with his analy-
sis and advice to the head of the department or
agency proposing such action or the Council or the
President, as may be appropriate;
(3) in consultation with the local governments
of the insular areas, prepare such information and
justification as may be necessary to—
(A) assist the President in the preparation
of his program, including the annual submission
on the budget concerning the allocation of
funds to and among the various agencies with
responsibilities in any of the insular areas;
(B) advise agencies on the appropriateness
of activities by such agencies in or concerning
the insular areas; and
(C) propose and support recommendations
for such extensions of, exemptions from, and
modifications to such laws, rules and regula-
tions as may facilitate the political, social, and
economic development of each insular area, con-
sistent with the policy set forth in title I of this
Act;
(4) coordinate the provision of such technical
and other assistance and advice as the local govern-
ments of the insular areas may require; and
(5) perform such specific activities as may be
authorized in the insular areas and such other ac-
tivities as may be necessary to carry out responsibil-
ities of the Council.
SEC. 205. REPORTS TO CONGRESS.
(a) The Council shall transmit a report on the state
of the insular areas to the Committee on Natural Re-
sources of the House of Representatives and the Commit-
tee on Energy and Natural Resources of the Senate not
later than February 15 of each year. The report shall indi-
cate the social, economic, and political conditions of the
insular areas through the preceding fiscal year. The report
shall detail changes in those conditions which occurred
during the fiscal year as well as foreseeable future develop-
ments and recommended actions to address those condi-
tions and developments.
(b) Matters on which the report shall provide infor-
mation for each insular area shall include, but not be
limited to—
(1) the insular area’s Federal relationship;
(2) the applicability or inapplicability of Federal
statutory and administrative actions and their im-
pacts;
(3) the effectiveness and delivery of Federal
programs;
(4) differences between the treatment of the in-
sular areas and their citizens under any Federal pol-
icy or program relative to the treatment of the
States and their citizens;
(5) the activities and accomplishments of agen-
cies pertaining to the insular areas;
(6) the adequacy of essential public infrastruc-
ture;
(7) general economic conditions;
(8) private sector activities and development
and investment potential;
(9) existing employment and job opportunities
and training;
(10) the fiscal positions of the insular areas;
(11) Federal fiscal and economic policies as
they impact the insular areas;
(12) amounts and uses of Federal direct and
indirect assistance;
(13) the capability of the local governments to
administer and manage various programs and meet
needs and the efforts of Federal agencies to improve
that capability;
(14) international obligations or undertakings
regarding the insular areas; and
(15) compliance with legislative mandates.
(c) The report shall clearly state the program of the
President with regard to the matters specified in sub-
section (b) together with such specific proposals to accom-
plish the program as the Council deems appropriate.
(d) To facilitate the preparation of the report—
(1) each Federal agency with programs operat-
ing in or affecting the insular areas shall report to
the Director on such activities not later than No-
vember 15 of each year; and
(2) the Director shall submit a draft of the re-
port, developed after full consultation with the gov-
ernments of the insular areas, to the Council for re-
view not later than January 15 of each year.
SEC. 206. USE OF FEDERAL AGENCIES.
To the maximum extent practicable, the Director
shall use the personnel and services of other Federal agen-
cies in carrying out the responsibilities transferred to the
Council by this title and such responsibilities as may be
assigned to him. The head of each Federal agency is di-
rected to cooperate with the Director and to make such
personnel and services available as the Director may
request.
SEC. 207. DELEGATION.
The Council may from time to time make such provi-
sions as it deems appropriate authorizing the performance
of any of the functions transferred to it by the provisions
of this title by any of its staff, or, with the concurrence
of the head of any executive branch department or agency,
may assign specific functions to such department or agen-
cy subject to the supervision of the Director. The Director
shall notify the Committee on Natural Resources of the
House of Representatives and the Committee on Energy
and Natural Resources of the Senate not less than 60 days
prior to an assignment of responsibility to another depart-
ment or agency. Such notice shall indicate the reasons for
such assignment, the scope of such assignment, the dura-
tion of the assignment, the concurrence of the head of the
department or agency to which the function is assigned
in the assignment, and the continued supervision and re-
sponsibility of the Director.
SEC. 208. OFFICE OF INSULAR ASSISTANCE.
(a) The Office of Territorial and International Affairs
established pursuant to the Order of the Secretary of the
Interior 3046 is hereby abolished.
(b)(1) There is hereby established an Office of Insu-
lar Assistance within the Department of the Interior under
the direct supervision of the Deputy Secretary of the
Interior.
(2) The Office shall assume the responsibilities of the
Office of Territorial and International Affairs regarding
the administration of grants to territorial governments.
SEC. 209. TRANSFERS.
(a) The personnel employed in connection with, and
the assets, liabilities, contracts, property, facilities,
records, and unexpended balance of appropriations, and
other funds employed, held, used, arising from, available
to, or to be made available in connection with the func-
tions and offices, or portions thereof, referenced in by this
title, including all senior executive service positions, shall
be transferred to the Council for appropriate allocation by
the Director in accordance with any applicable laws and
regulations relating to transfer of functions. Unexpended
funds transferred pursuant to this section shall be used
only for the purposes for which the funds were originally
authorized and appropriated, except that such funds may
be used for the expenses associated with the transfer pur-
suant to this title.
(b) In order to facilitate the transfers effected by this
title, the Director of the Office of Management and Budg-
et, in consultation with the Director and the Committee
on Natural Resources of the House of Representatives and
the Committee on Energy and Natural Resources of the
Senate, is authorized and directed to make such deter-
minations as may be necessary with regard to functions,
offices, or portions thereof, dispositions of personnel, as-
sets, liabilities, grants, contracts, property, records, and
unexpended balances of appropriations, authorizations,
apportionments, allocations, and other funds held, used,
arising from, available to, or to be made available in con-
nection with such functions, offices, or portions thereof,
as may be necessary to resolve disputes between the Direc-
tor and the heads of the department or agency from which
the transfer was made which may arise in connection with
the transfers. This section does not vest in the Director
of the Office of Management and Budget any of the func-
tions, power of duties of the Council or its Director or
the department or agency. The authority and direction
given by this section to the Director of the Office of
Management and Budget shall terminate 60 days after
enactment.
SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out the purposes of this Act.
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