TITLE XI—UNITED STATES
FINANCIAL ASSISTANCE
SEC. 1101. RETURN OF TAXES AND FEES.
All customs duties and Federal income taxes derived
from Guam, the proceeds of all taxes collected under the
internal revenue laws of the United States on articles pro-
duced in Guam and transported to the United States, its
Territories, or possessions, or consumed in Guam, and the
proceeds of any other taxes which may be levied by the
Congress on the inhabitants of Guam (including, but not
limited to, compensation paid to members of the Armed
Forces and pensions paid to retired civilian and military
employees of the United States, or their survivors, who
are residents of, or who are domiciled in, Guam), and all
quarantine, passport, immigration, and naturalization fees
collected in Guam shall be covered into the Treasury of
Guam and held in account for the Government of Guam
in accordance with the annual budgets except that nothing
in this Act shall be construed to apply to any tax imposed
by Chapter 2 or 21 of the Internal Revenue Code of 1954.
SEC. 1102. EQUAL FINANCE FOR GUAM CITIZENS WITH
STATES.
The laws of the United States providing Federal ben-
efits and financial assistance and which have a general
application to the several States shall be applicable to
Guam, including section 228 or title II and title XVI of
the Social Security Act (Supplemental Security Income).
The formula for granting such financial assistance to
Guam and its residents shall be the same as the formula
applied to the several states and their residents unless
such formula cannot, on its face, be applied to Guam or
it is specifically stated to the contrary in this Act.
SEC. 1103. RETURN OF ECONOMIC ZONE FEES.
The Commonwealth shall have paid to the Treasury
of Guam all licensing and other fees obtained by permit-
ting foreign vessels to fish or other exploitation of the 200-
mile Exclusive Economic Zone of Guam.
SEC. 1104. FEDERAL PAYMENT.
(a) The Governor of Guam, in preparing an annual
budget for the Government of the Commonwealth of
Guam, shall develop meaningful expenditure and revenue
comparisons based on data supplied by the Bureau of the
Census and other independent, reliable sources and iden-
tify elements of cost and benefits to Guam which result
from the unusual role of Guam as one of the Nation’s
principal military bastions in the Far East despite its
small size. The results of the studies conducted by the
Governor under this subsection shall be made available to
the Guam Legislature and to the Federal Office of Man-
agement and Budget for their use in reviewing and revis-
ing the Governor’s request with respect to the level of ap-
propriation for the annual Federal payment to the Com-
monwealth of Guam. Such Federal payment should oper-
ate to encourage efforts on the part of the Government
of Guam to maintain and increase its level of revenues
and to seek such efficiencies and economies in the manage-
ment of its programs as are possible.
(b) The Governor, in studying and identifying the
costs and benefits to Guam brought about by its role in
the nation’s national security, should to the extent fea-
sible, among other elements, consider—
(1) revenues unobtainable because of the rel-
ative lack of taxable commercial and industrial prop-
erty;
(2) revenues unobtainable because of the rel-
ative lack of taxable business income;
(3) potential revenues that would be realized if
exemptions from Guam taxes were eliminated;
(4) net costs, if any, after considering other
compensation for tax base deficiencies and direct
and indirect taxes paid, of providing services to or-
ganizations and corporate offices doing business only
with the Defense Department;
(5) recurring and nonrecurring costs of unreim-
bursed services to the Defense Department;
(6) recurring and nonrecurring costs of unreim-
bursed services rendered Guam by the Defense De-
partment; and
(7) relative tax burden on Guam residents com-
pared to that of resident in other jurisdictions in the
Pacific.
(c) The Governor shall submit his request, with re-
spect to the amount of an annual Federal payment, to the
Guam Legislature. The Guam Legislature shall by act ap-
prove, disapprove, or modify the Governor’s request. After
the action of the Legislature, the Governor shall, by De-
cember 1st of each calendar year, in accordance with the
provisions in the Budget and Accounting Act, 1921 (31
U.S.C. 2), submit such request to the President for sub-
mission to the Congress. Each request regarding an an-
nual Federal payment shall be submitted to the President
7 months prior to the beginning of the fiscal year for
which such request is made and shall include a request
for an annual Federal payment for the next following
fiscal year.
SEC. 1105. TRANSITION ASSISTANCE TO THE COMMON-
WEALTH.
The Government of the United States in order to as-
sist Guam to make the political and economic transition
to Commonwealth agrees to assist the Commonwealth of
Guam as follows:
(1) The United States agrees to—
(A) finance the costs of institutional
changes connected with the change in Guam’s
political relationship with the United States, to
include staff, contracts, and referendum costs
of the Guam Commission on Self-Determina-
tion;
(B) help meet the capital needs of Guam,
in accordance with the following section, nec-
essary to Guam’s long-term, self-sustaining de-
velopment; and
(C) establish an economic development
fund to assist expansion of the private sector.
(2) There is hereby authorized such sums as
may be necessary to implement a long-term capital
improvement program approved by the Congress
permitting the Commonwealth of Guam to establish
an infrastructure base adequate for development of
the private sector and to strengthen the utility of
Guam for United States national security purposes.
(3) Guam shall submit a plan for Congressional
approval showing the total amounts proposed, the
distribution of funds by projects, phases, or pro-