I
104TH CONGRESS
1ST SESSION
H. R. 602
To reform the laws concerning territories and possessions.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 20, 1995
Mr. GALLEGLY introduced the following bill; which was referred to the Com-
mittee on Resources and, in addition, to the Committees on Economic
and Educational Opportunities, the Judiciary, and Ways and Means 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 com-
mittee concerned
A BILL
To reform the laws concerning territories and possessions.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Omnibus Territories Act’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 101. Short title.
Sec. 102. Congressional findings.
Sec. 103. Elimination of Office of Territorial and International Affairs.
TITLE II—AUTHORITY MODIFICATIONS PURSUANT TO COVENANT
OF NORTHERN MARIANA ISLANDS
Sec. 201. Applicability of minimum wage laws.
Sec. 202. Applicability of Fair Labor Standards Act of 1938 with respect to
minimum wage.
Sec. 203. Applicability of immigration laws.
Sec. 204. Removal of authority of Northern Mariana Islands to rebate taxes.
TITLE III—INSULAR AREAS CONSOLIDATION ACT
Sec. 301. Short title.
Sec. 302. Additions to State of Hawaii.
Sec. 303. Conforming amendments.
Sec. 304. Use of islands, reef, and atolls.
Sec. 305. Additions contingent upon acceptance by State of Hawaii.
Sec. 306. Definitions.
TITLE IV—CONVEYANCE OF SUBMERGED LANDS TO NORTHERN
MARIANA ISLANDS
Sec. 401. Conveyance of submerged lands.
Sec. 402. Reserved rights.
Sec. 403. Time for exceptions from transfer.
TITLE V—GUAM WORLD WAR II LOYALTY RECOGNITION ACT
Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Requirements for claims and general duties of board.
Sec. 504. Eligibility.
Sec. 505. Payments.
Sec. 506. Guam World War II Loyalty Recognition Trust Fund.
Sec. 507. Guam World War II Loyalty Recognition Trust Fund Board of Di-
rectors.
Sec. 508. Notice.
Sec. 509. Reports.
Sec. 510. Limitation on agent and attorney fees.
Sec. 511. Disclaimer.
Sec. 512. Authorization of appropriations.
TITLE VI—DELEGATE FROM PUERTO RICO
Sec. 601. Redesignation of Resident Commissioner from Puerto Rico.
Sec. 602. Term of office of Delegate.
Sec. 603. Procedure to fill vacancy.
TITLE VII—CONSULTATION OF AND EFFORTS TO INCLUDE
TERRITORIES REGARDING FREE TRADE AGREEMENTS
Sec. 701. Consultation of and efforts to include territories.
Sec. 702. Tariff enactment of territories.
Sec. 703. Inclusion of territories in customs territory and free trade agree-
ments.
TITLE I—TERRITORIAL ADMINIS-
TRATIVE CESSATION ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Territorial Adminis-
trative Cessation Act’’.
SEC. 102. CONGRESSIONAL FINDINGS.
The Congress finds that—
(1) each of the 4 political subdivisions of the
United Nations Trust Territory of the Pacific Is-
lands, known as the Japanese Mandated Islands,
have successfully entered into distinct self-governing
entities, thereby culminating in the final termination
of the Trusteeship and the end of the trusteeship re-
sponsibilities of the United States as administering
authority of the Trust Territory on October 1, 1994;
(2) the United States territories have developed
progressively increased local self-government over
the past 5 decades;
(3) the territories predominantly deal directly
with Federal agencies and departments, as a State
would;
(4) the administering responsibilities of the De-
partment of the Interior with respect to the insular
areas has declined substantially during the past 5
decades; and
(5) Federal-territorial relations can be enhanced
and Federal fiscal conditions improved by the elimi-
nation of unnecessary Federal bureaucracy.
SEC. 103. ELIMINATION OF OFFICE OF TERRITORIAL AND
INTERNATIONAL AFFAIRS.
(a) IN GENERAL.—The Office of Territorial and
International Affairs of the Department of the Interior,
established pursuant to the Order of the Secretary of the
Interior 3046, of February 14, 1980, as amended, is here-
by abolished.
(b) TERMINATION OF POSITION OF ASSISTANT SEC-
RETARY.—Section 5315 of title 5, United States Code, is
amended by striking ‘‘Assistant Secretaries of the Interior
(6)’’ and inserting ‘‘Assistant Secretaries of the Interior
(5)’’.
(c) EFFECTIVE
DATE.—Subsection (a) and the
amendment made by subsection (b) shall take effect on
the first day of the first fiscal year that begins after the
date of the enactment of this Act.
TITLE 
II—AUTHORITY 
MODI-
FICATIONS 
PURSUANT 
TO
COVENANT 
OF 
NORTHERN
MARIANA ISLANDS
SEC. 201. APPLICABILITY OF MINIMUM WAGE LAWS.
(a) IN GENERAL.—Public Law 94–241 (48 U.S.C.
1681 note) is amended by adding at the end the following
new section:
‘‘SEC. 6. Section 503 of the foregoing Covenant shall
be construed and applied as if it did not include paragraph
(c) of such section.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall be effective with respect to work per-
formed after the expiration of the 6-month period begin-
ning on the date of the enactment of this Act.
SEC. 202. APPLICABILITY OF FAIR LABOR STANDARDS ACT
OF 1938 WITH RESPECT TO MINIMUM WAGE.
(a) SECTION 5.—Section 5 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 205) is amended—
(1) in the title, by inserting ‘‘AND NORTHERN
MARIANA ISLANDS’’ after ‘‘AMERICAN SAMOA’’,
(2) in subsection (a), in the first sentence, by
inserting ‘‘and in the Northern Mariana Islands’’
after ‘‘American Samoa’’, and
‘‘(3) in subsection (a), in the second sentence,
by inserting ‘‘or the Northern Mariana Islands, as
the case may be,’’ after ‘‘American Samoa’’ each
place it appears.
(b) SECTION 6.—Section 6(a)(3) of the Fair Labor
Standard Act of 1938 (29 U.S.C. 206(a)(3)) is amended
by inserting ‘‘or in the Northern Mariana Islands’’ after
‘‘American Samoa’’.
(c) SECTION 8.—Section 8 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 208) is amended—
(1) in the title, by inserting ‘‘AND NORTHERN
MARIANA ISLANDS’’ AFTER ‘‘AMERICAN SAMOA’’,
(2) in subsection (a), by inserting ‘‘and in the
Northern 
Mariana 
Islands’’ 
after 
‘‘American
Samoa’’ each place it occurs, and
(3) in subsection (b), by inserting ‘‘or in the
Northern Mariana Islands’’ after ‘‘in American
Samoa’’ and by inserting ‘‘or the Northern Mariana
Islands’’ after ‘‘of American Samoa’’.
SEC. 203. APPLICABILITY OF IMMIGRATION LAWS.
(a) IN GENERAL.—Public Law 94–241 (48 U.S.C.
1681 note) is amended by adding at the end the following
new section:
‘‘SEC. 7. Section 506(a) of the foregoing Covenant
shall be construed and applied as if it included at the end
the following subsection:
‘ ‘‘(e)(1) For purposes of entry into the Northern
Mariana Islands by any individual (but not for purposes
of entry by an individual into the United States from the
Northern Mariana Islands), the Immigration and Nation-
ality Act shall apply as if the Northern Mariana Islands
were a State. The Attorney General, acting through the
Commissioner of Immigration and Naturalization, shall
enforce the preceding sentence.
‘ ‘‘(2)(A) Notwithstanding paragraph (1), with re-
spect to an individual seeking entry into the Northern
Mariana Islands for purposes of employment in the textile,
hotel, tourist, or construction industry (including employ-
ment as a contractor), the Federal statutes and regula-
tions governing admission to Guam of individuals de-
scribed in section 101(a)(15)(H)(ii)(B) of the Immigra-
tion and Nationality Act shall apply. Such statutes and
regulations shall be so applied by substituting the term
‘the Northern Mariana Islands’ for the term ‘Guam’ each
place it appears, and by substituting the term ‘United
States citizen, national, or resident workers’ for the term
‘United States resident workers’.
‘ ‘‘(B) Notwithstanding any other provision of this
section, the Attorney General shall not admit into the
Northern Mariana Islands, in any calendar year, a greater
number of individuals for purposes of employment in each
of the textile, hotel, tourist, and construction industries
(including employment as a contractor) than the immi-
grant workers limit for such industry. For purposes of the
preceding sentence, the term ‘immigrant workers limit’
means, with respect to any industry, the number of indi-
viduals admitted into the Northern Mariana Islands in cal-
endar year 1992 for purposes of employment in such in-
dustry. The Attorney General, acting through the Com-
missioner of Immigration and Naturalization, may in-
crease, for any calendar year, the immigrant workers limit
or any industry (as determined under the preceding sen-
tence) by the same percentage as the percentage, if any,
by which the population of the Northern Mariana Islands
in such calendar year exceeds the population of the North-
ern Mariana Islands in the calendar year 1992.’.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to individuals entering the North-
ern Mariana Islands after the expiration of the 6-month
period beginning with the date of the enactment of this
Act.
SEC. 204. REMOVAL OF AUTHORITY OF NORTHERN MARI-
ANA ISLANDS TO REBATE TAXES.
Public Law 94–241 (48 U.S.C. 1681 note) is amend-
ed by adding at the end the following new section:
‘‘SEC. 8. Section 602 of the foregoing Covenant shall
be construed and applied as if it read as follows:
‘ ‘‘SEC. 602. The Government of the Northern Mari-
ana Islands may by local law impose such taxes, in addi-
tion to those imposed under Section 601, as it deems ap-
propriate.’.’’.
TITLE III—INSULAR AREAS
CONSOLIDATION ACT
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Insular Areas Consoli-
dation Act of 1995’’.
SEC. 302. ADDITIONS TO STATE OF HAWAII.
(a) IN GENERAL.—The State of Hawaii shall include
Baker Island, Jarvis Island, Johnston Atoll, Kingman
Reef, Howland Island, the Midway Islands, and Palmyra
Atoll.
(b) JURISDICTION.—The islands specified in sub-
section (a) shall be subject to the jurisdiction of the State
of Hawaii to the same extent as and in the same manner
that such jurisdiction applies to all other areas within the
State of Hawaii.
(c) RIGHTS OF UNITED STATES.—The inclusion of
islands, appurtenant reefs, and territorial waters in the
State of Hawaii by this section shall be subject to existing
rights of use, ownership, management, and operation by
the Government of the United States.
SEC. 303. CONFORMING AMENDMENTS.
(a) HAWAII STATEHOOD ACT.—Section 2 of the Act
of March 18, 1959 (Public Law 86–3; 73 Stat. 4; 48
U.S.C. Chap. 3 note), is amended by striking all that fol-
lows ‘‘enactment of this Act’’ and inserting a period.
(b) EXEMPTION FROM PROVISIONS RELATING TO
THE GUANO ISLANDS.—Title LXXII of the Revised Stat-
utes (48 U.S.C. 1411 et seq.) shall not apply to the is-
lands, reef, and atolls specified in section 302(a).
SEC. 304. USE OF ISLANDS, REEF, AND ATOLLS.
No provision of this title shall be construed as con-
gressional approval, suggestion, or intent to alter, change,
affect, or reduce the current use of any of this islands,
reef, or atolls specified in section 302(a).
SEC. 305. ADDITIONS CONTINGENT UPON ACCEPTANCE BY
STATE OF HAWAII.
(a) ACCEPTANCE BY STATE OF HAWAII.—Sections
302 and 303 shall not take effect unless the Governor of
the State of Hawaii certifies to the President that the
State of Hawaii accepts all of the islands, reef, and atolls
referred to in section 302(a).
(b) PROCLAMATION BY PRESIDENT.—Not later than
30 days after receiving the certification described in sub-
section (a), the President shall issue a proclamation of the
new geographical jurisdiction of the State of Hawaii.
(c) EFFECTIVE DATE.—Sections 302 and 303 shall
take effect upon the issuance of the proclamation de-
scribed in subsection (b).
SEC. 306. DEFINITIONS.
For purposes of this title:
(1) BAKER ISLAND.—The term ‘‘Baker Island’’
means all of the islands and appurtenant reefs at
the parallel of 0 degrees, 11 to 13 minutes, of lati-
tude north of the Equator and at the meridian of
176 degrees, 27 to 30 minutes, of longitude west of
Greenwich, England, and the territorial waters of
such islands and reefs.
(2) HOWLAND
ISLAND.—The term ‘‘Howland
Island’’ means all of the islands and appurtenant
reefs at the parallel of 0 degrees, 46 to 50 minutes,
of latitude north of the Equator and at the meridian
of 176 degrees, 37 to 39 minutes, of longitude west
of Greenwich, England, and the territorial waters of
such islands and reefs.
(3) JARVIS ISLAND.—The term ‘‘Jarvis Island’’
means all of the islands and appurtenant reefs at
the parallel of 0 degrees, 22 to 24 minutes, of lati-
tude south of the Equator and at the meridian of
160 degrees, 0 to 3 minutes, of longitude west of
Greenwich, England, and the territorial waters of
such islands and reefs.
(4) JOHNSTON
ATOLL.—The term ‘‘Johnston
Atoll’’ means all of the islands and appurtenant
reefs at the parallel of 16 degrees, 40 to 48 minutes,
of latitude north of the Equator and at the meridian
of 169 degrees, 24 to 36 minutes, of longitude west
of Greenwich, England, and the territorial waters of
such islands and reefs.
(5) KINGMAN
REEF.—The term ‘‘Kingman
Reef’’ means all of the territory and appurtenant
reefs at the parallel of 6 degrees, 22 to 27 minutes,
of latitude north of the Equator and at the meridian
of 162 degrees, 22 to 25 minutes, of longitude west
of Greenwich, England, and the territorial waters of
such islands and reefs.
(6) MIDWAY ISLANDS.—The term ‘‘Midway Is-
lands’’ means all of the islands and appurtenant
reefs at the parallel of 28 degrees, 10 to 18 minutes,
of latitude north of the Equator and at the meridian
of 177 degrees, 16 to 28 minutes, of longitude west
of Greenwich, England, and the territorial waters of
such islands and reefs.
(7) PALMYRA
ATOLL.—The term ‘‘Palmyra
Atoll’’ means all of the islands and appurtenant
reefs at the parallel of 5 degrees, 51 to 54 minutes,
of latitude north of the Equator and at the meridian
of 162 degrees, 0 to 11 minutes, of longitude west
of Greenwich, England, and the territorial waters of
such islands and reefs.
TITLE IV—CONVEYANCE OF SUB-
MERGED LANDS TO NORTH-
ERN MARIANA ISLANDS
SEC. 401. CONVEYANCE OF SUBMERGED LANDS.
The first section of Public Law 93–435 (88 Stat.
1210; 48 U.S.C. 1705) is amended—
(1) in subsection (a), by striking ‘‘Guam, the
Virgin Islands, and American Samoa’’ each place it
appears and inserting ‘‘Guam, the Virgin Islands,
American Samoa, and the Northern Mariana Is-
lands’’; and
(2) in subsection (b), by striking ‘‘Guam, the
Virgin Islands, or American Samoa’’ each place it
appears and inserting ‘‘Guam, the Virgin Islands,
American Samoa, or the Northern Mariana Is-
lands’’.
SEC. 402. RESERVED RIGHTS.
Section 2 of Public Law 93–435 (88 Stat. 1211; 48
U.S.C. 1706) is amended—
(1) in subsection (a), by striking ‘‘Guam, Amer-
ican Samoa, and the Virgin Islands’’ and inserting
‘‘Guam, American Samoa, the Virgin Islands, and
the Northern Mariana Islands’’; and
(2) in subsection (b), by striking ‘‘Guam, the
Virgin Islands, or American Samoa’’ and inserting
‘‘Guam, the Virgin Islands, American Samoa, or the
Northern Mariana Islands’’.
SEC. 403. TIME FOR EXCEPTIONS FROM TRANSFER.
Subsection (b)(vii) of the first section of Public Law
93–435 (88 Stat. 1210; 48 U.S.C. 1705) is amended by
striking the semicolon and inserting ‘‘or, in the case of
a transfer to the Northern Mariana Islands, within one
hundred and twenty days after the date of enactment of
the Omnibus Territories Act;’’.
TITLE V—GUAM WORLD WAR II
LOYALTY RECOGNITION ACT
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Guam World War II
Loyalty Recognition Act’’.
SEC. 502. DEFINITIONS.
For the purposes of this Act:
(1) AWARD.—The term ‘‘award’’ means the
amount of compensation payable under section
505(b).
(2) BENEFIT.—The term ‘‘benefit’’ means the
amount of compensation payable under section
505(c).
(3) BOARD.—The term ‘‘Board’’ means the
Guam World War II Loyalty Recognition Trust
Fund Board of Directors established by section 507.
(4) COMPENSABLE INJURY.—The term ‘‘com-
pensable injury’’ means any of the following 3 cat-
egories of injury incurred during, or as a result of,
World War II:
(A) Death.
(B) Personal injury (as defined by the
Board).
(C) Forced labor, forced march, or intern-
ment.
(5) GUAMANIAN.—The term ‘‘Guamanian’’
means any person who—
(A) resided in the territory of Guam at any
time during the period beginning on December
8, 1941, and ending on September 2, 1945;
(B) was a United States citizen or national
during such period; and
(C) did not meet the 1-year time limitation
for the filing of death or personal injury claims
specified in the first section of the Act of No-
vember 15, 1945 (Chapter 483; 59 Stat. 582),
or suffered injuries not compensable under such
Act.
(6) TRUST
FUND.—The term ‘‘Trust Fund’’
means the Guam World War II Loyalty Recognition
Trust Fund established by section 506(a).
SEC. 503. REQUIREMENTS FOR CLAIMS AND GENERAL DU-
TIES OF BOARD.
(a) REQUIRED INFORMATION FOR CLAIMS.—Each
claim for an award or benefit under this Act shall be made
under oath and shall include—
(1) the name and age of the claimant;
(2) the village in which the claimant, or the in-
dividual who suffered the compensable injury that is
the basis for the claim, as the case may be, resided
at the time the compensable injury occurred;
(3) the approximate date or dates on which the
compensable injury that is the basis for the claim
occurred;
(4) a brief description of the compensable in-
jury;
(5) the circumstances leading to the compen-
sable injury; and
(6) in the case of a claim for a benefit, proof
of the relationship of the claimant to the relevant
decedent.
(b) GENERAL DUTIES
OF BOARD
TO PROCESS
CLAIMS.—With respect to each claim filed under this Act,
the Board shall determine whether the claimant is eligible
for an award or benefit under this Act and, if so, shall
certify the claim for payment in accordance with section
505(a).
(c) TIME LIMITATION.—With respect to each claim
submitted under this Act, the Board shall act expedi-
tiously, but in no event later than 1 year after the receipt
of the claim by the Board, to fulfill the requirements of
subsection (b) regarding the claim.
SEC. 504. ELIGIBILITY.
(a) ELIGIBILITY FOR AWARDS.—To be eligible for an
award under this Act, a claimant shall meet each of the
following criteria:
(1) The claimant is a living Guamanian who
personally received the compensable injury that is
the basis for the claim.
(2) The claimant files a claim with the Board
regarding a compensable injury and containing all
the information required by section 503(a).
(3) The claimant is able to furnish proof of the
compensable injury or is able to produce affidavits
by 2 witnesses to the compensable injury.
(4) By such procedures as the Board may pre-
scribe, the claimant files a claim under this Act
within 1 year after the date of the appointment of
the ninth member of the Board.
(b) ELIGIBILITY FOR BENEFITS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), to be eligible for a benefit under this Act,
a claimant shall meet each of the following criteria:
(A) The claimant is a living Guamanian
who is an heir or next of kin of a decedent Gua-
manian who personally received the compen-
sable injury that is the basis for the claim.
(B) The Claimant files a claim with the
Board regarding the compensable injury and
containing all the information required by sec-
tion 503(a).
(C) The claimant is able to furnish proof
of the compensable injury or is able to produce
affidavits by 2 witnesses to the compensable in-
jury.
(D) By such procedures as the Board may
prescribe, the claimant files a claim under this
Act within 1 year after the date of the appoint-
ment of the ninth member of the Board.
(2) INDIVIDUALS
PROVING
CONSANGUINITY
WITH
OTHER
CLAIMANTS.—Except as provided in
section 505(e), each individual who proves con-
sanguinity with a claimant who has met each of the
criteria specified in paragraph (1) shall be eligible to
receive an equal share of the benefit accruing, under
this Act, to such claimant if the individual files a
claim with the Board by such procedures as the
Board may prescribe.
(c) LIMITATION ON ELIGIBILITY FOR AWARDS AND
BENEFITS.—
(1) AWARDS.—(A) No claimant may receive
more than 1 award under this Act.
(B) Each award shall consist of only 1 of the
amounts referred to in section 505(b).
(2) BENEFITS.—(A) Not more than 1 benefit
may be paid under this Act with respect to each de-
cedent described in subsection (b)(1)(A).
(B) Each benefit shall consist of only 1 of the
amounts referred to in section 505(c).
SEC. 505. PAYMENTS.
(a) CERTIFICATION.—The Board shall certify for
payment all awards and benefits that the Board deter-
mines are payable under this Act.
(b) AWARDS.—The Board shall pay from the Trust
Fund 1 of the following amounts as an award to each
claimant eligible under section 504(a):
(1) $7,000 if the relevant claim is based on per-
sonal injury.
(2) $5,000 if the relevant claim is based on
forced labor, forced march, or internment and is not
based on personal injury.
(c) BENEFITS.—The Board shall pay from the Trust
Fund 1 of the following amounts as a benefit to each
claimant eligible under section 504(b):
(1) $20,000 if the relevant claim is based on
death.
(2) $7,000 if the relevant claim is based on per-
sonal injury and is not based on death.
(3) $5,000 if the relevant claim is based on
forced labor, forced march, or internment and is not
based on death or personal injury.
(d) REFUSAL TO ACCEPT PAYMENT.—If a claimant
refuses to accept a payment made or offered under sub-
section (b) or (c) with respect to a claim filed under this
Act—
(1) the amount of the refused payment, if with-
drawn from the Trust Fund for purposes of making
the payment, shall be returned to the Trust Fund;
and
(2) no payment may be made under this Act to
such claimant at any future date with respect to the
claim.
(e) PAYMENTS ON CLAIMS FOR THE SAME DEATH.—
If the relevant compensable injury regarding a claim is
death, payment of a benefit under this Act with respect
to the claim shall be divided among the heirs or next of
kin claiming such payment with respect to the death, as
provided in the probate laws of Guam.
(f) ORDER OF PAYMENTS.—The Board shall endeav-
or to make payments under this Act with respect to
awards before making such payments with respect to bene-
fits and, when making payments with respect to awards
or benefits, respectively, to make payments to eligible indi-
viduals in the order of date of birth (the oldest individual
on the date of the enactment of this Act, or, if applicable,
the survivors of that individual, receiving payment first),
until all eligible individuals have received payment in full.
SEC. 506. GUAM WORLD WAR II LOYALTY RECOGNITION
TRUST FUND.
(a) ESTABLISHMENT.—There is established in the
Treasury of the United States the Guam World War II
Loyalty Recognition Trust Fund, which shall be adminis-
tered by the Secretary of the Treasury.
(b) INVESTMENTS.—Amounts in the Trust Fund
shall be invested in accordance with section 9702 of title
31, United States Code.
(c) USES.—Amounts in the Trust Fund shall be
available only for disbursement by the Board in accord-
ance with section 507.
(d) DISPOSITION OF FUNDS UPON TERMINATION.—
If all of the amounts in the Trust Fund have not been
obligated or expended by the date of the termination of
the Board, investments of amounts in the Trust Fund
shall be liquidated, the receipts of such liquidation shall
be deposited in the Trust Fund, and any unobligated
funds remaining in the Trust Fund shall be given to the
University of Guam, with the conditions that—
(1) the funds are invested as described in sub-
section (b):
(2) the funds are used for scholarships, to be
known as Guam World War II Loyalty Scholarships,
for claimants described in subsection (a) or (b) (or
both) of section 504, or for such scholarships for the
descendants of such claimants; and
(3) as the University determines appropriate,
the University shall endeavor to award the scholar-
ships referred to in paragraph (2) in a manner that
permits the award of the largest possible number of
scholarships over the longest possible period of time.
SEC. 507. GUAM WORLD WAR II LOYALTY RECOGNITION
TRUST FUND BOARD OF DIRECTORS.
(a) ESTABLISHMENT.—There is established the
Guam World War II Loyalty Recognition Trust Fund
Board of Directors, which shall be responsible for making
disbursements from the Guam World War II Loyalty Rec-
ognition Trust Fund in the manner provided in this sec-
tion.
(b) USE OF GUAM WORLD WAR II LOYALTY REC-
OGNITION TRUST FUND.—The Board may make disburse-
ments from the Guam Recognition Trust Fund only for
the following uses:
(1) To make payments, under section 505, of
awards and benefits to eligible claimants, in the
amounts specified by such section.
(2) To sponsor research and public educational
activities so that the events surrounding the wartime
experiences and losses of the Guamanian people will
be remembered, and so that the causes and cir-
cumstances of this event and similar events may be
illuminated and understood.
(3) To disburse available funds as benefits to
eligible claimants, through a revolving fund, for such
purposes as post-secondary scholarships, first-time
home ownership loans, and any other purpose that
the Board determines to be appropriate.
(4) To pay reasonable administrative expenses
of the Board, including expenses incurred under sub-
sections (c)(3), (d), and (e).
(c) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—The Board
shall be composed of 9 members who are not officers
or employees of the United States Government and
who are appointed by the President from rec-
ommendations made by the Governor of Guam.
(2) TERMS.—(A) Initial members of the Board
shall be appointed for initial terms of 3 years, and
subsequent terms shall be of a length determined
pursuant to paragraph (6)(B).
(B) Any member of the Board who is appointed
to fill a vacancy occurring before the expiration of
the term for which such member’s predecessor was
appointed shall be appointed only for the remainder
of such term.
(3) PROHIBITION
OF
COMPENSATION
OTHER
THAN
EXPENSES.—Members of the Board shall
serve without pay as such, except that members of
the Board shall be entitled to reimbursement for
travel, subsistence, and other necessary expenses in-
curred by them in carrying out the functions of the
Board in the same manner that persons employed
intermittently in the United States Government are
allowed expenses under section 5703 of title 5, Unit-
ed States Code.
(4) QUORUM.—5 members of the Board shall
constitute a quorum but a lesser number may hold
hearings.
(5) CHAIRPERSON.—The Chair of the Board
shall be elected by the members of the Board.
(6) SUBSEQUENT
APPOINTMENTS.—(A) Upon
the expiration of the term of each member of the
Board, the President shall reappoint the member (or
appoint another individual to replace the member) if
the President determines, after consideration of the
reports submitted to the President by the Board
under this title, that there are sufficient funds in the
Trust Fund for the present and future administra-
tive costs of the Board and for the payment of fur-
ther awards and benefits for which claims have been
or may be filed under this title.
(B) Members appointed under paragraph (A)
shall be appointed for a term of a length that the
President determines to be appropriate, but the
length of such term shall not exceed 3 years.
(d) STAFF AND SERVICES.—
(1) DIRECTOR.—The Board shall have a Direc-
tor who shall be appointed by the Board.
(2) ADDITIONAL STAFF.—The Board may ap-
point and fix the pay of such additional staff as it
may require.
(3) INAPPLICABILITY OF CERTAIN PROVISIONS
OF TITLE 5, UNITED STATES CODE.—The Director
and the additional staff of the Board may be ap-
pointed without regard to section 5311 of title 5,
United States Code, and without regard to the pro-
visions of such title governing appointments in the
competitive service, and may be paid without regard
to the provisions of chapter 51 and subchapter III
of chapter 53 of such title relating to classification
and General Schedule pay rates, except that the
compensation of any employee of the Board may not
exceed a rate equivalent to the minimum rate of
basic pay payable for GS–15 of the General Sched-
ule under section 5332(a) of such title.
(4) ADMINISTRATIVE SUPPORT SERVICES.—The
Administrator of General Services shall provide to
the Board, on a reimbursable basis, such administra-
tive support services as the Board may request.
(e) GIFTS AND DONATIONS.—The Board may accept,
use, and dispose of gifts or donations of funds, services,
or property for uses referred to in subsection (b). The
Board may deposit such gifts or donations, or the proceeds
from such gifts or donations, into the Trust Fund.
SEC. 508. NOTICE.
Not later than 90 days after the appointment of the
ninth member of the Board, the Board shall give public
notice in the territory of Guam and such other places as
the Board deems appropriate of the time when, and the
time limitation within which, claims may be filed under
this title. The Board shall ensure that the provisions of
this title are widely published in the territory of Guam
and such other places as the Board deems appropriate,
and the Board shall make every effort both to advise
promptly all individuals who may be entitled to file claims
under the provisions of this title and to assist such individ-
uals in the preparation and filing of their claims.
SEC. 509. REPORTS.
(a) COMPENSATION AND CLAIMS.—Not later than 12
months after the formation of the Board, and each year
thereafter, the Board shall submit to the Congress, the
President, and the Governor of Guam a report containing
a determination of the specific amount of compensation
necessary to fully carry out this title, the expected amount
of receipts to the Trust Fund, and all payments made by
the Board under this title. The report shall also include—
(1) a list of all claims, categorized by compen-
sable injury, which were determined to be eligible for
an award or payment under this title, and a list of
claims, categorized by compensable injury, which
were certified for payment under this title; and
(2) a list of all claims, categorized by compen-
sable injury, which were determined not to be eligi-
ble for an award or benefit under this title, and a
brief explanation of the reason therefore.
(b) ANNUAL OPERATIONS AND STATUS OF FUND.—
Beginning with the first full fiscal year ending after sub-
mission of the first report required by subsection (a), and
annually thereafter with respect to each fiscal year in
which the Board is in existence, the Board shall submit
a report to the Congress, the President, and the Governor
of Guam concerning the operations of the Board under
this title and the status of the Trust Fund. Such report
shall be submitted not later than January 15th of each
applicable year.
(c) FINAL AWARD REPORT.—Once all awards have
been paid to eligible claimants, the Board shall submit a
report to the Congress, the President, and the Governor
of Guam certifying—
(1) the total amount of compensation paid as
awards under this title, broken down by category of
compensable injury; and
(2) the status of the Trust Fund and the
amount of any existing balance thereof.
(d) FINAL BENEFITS REPORT.—Once all benefits
have been paid to eligible claimants, the Board shall sub-
mit a report to the Congress, the President, and the Gov-
ernor of Guam certifying—
(1) the total amount of compensation paid as
benefits under this title, broken down by category of
compensable injury; and
(2) the final status of the Trust Fund and the
amount of any existing balance thereof.
SEC. 510. LIMITATION ON AGENT AND ATTORNEY FEES.
Any remuneration on account of services rendered on
behalf of any claimant, or any association of claimants,
in connection with any claim or claims under this title may
not exceed 5 percent of the amount paid on such claim
or claims under this title. Any agreement to the contrary
shall be unlawful and void. Whoever, in the United States
or elsewhere, demands or receives, on account of services
so rendered, any remuneration in excess of the maximum
permitted by this section shall be guilty of a misdemeanor
and, upon conviction thereof, shall be fined in accordance
with title 18, United States Code, imprisoned not more
than 12 months, or both.
SEC. 511. DISCLAIMER.
No provision of this title shall constitute an obligation
of the United States to pay any claim arising out of war.
The compensation provided under this title is ex gratia
in nature and intended solely as a means of recognizing
the demonstrated loyalty of the people of Guam to the
United States, and the suffering and deprivation arising
therefrom, during World War II.
SEC. 512. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out the administrative re-
sponsibilities of the Board for the 36-month period begin-
ning on the date of the appointment of the ninth member
of the Board.
TITLE VI—DELEGATE FROM
PUERTO RICO
SEC. 601. REDESIGNATION OF RESIDENT COMMISSIONER
FROM PUERTO RICO.
(a) IN GENERAL.—Section 36 of the Act of March
2, 1917 (39 Stat. 963; 48 U.S.C. 891–893) is amended—
(1) by striking ‘‘Resident Commissioner’’ each
place it appears and inserting ‘‘Delegate’’; and
(2) by striking ‘‘Commissioner’’ each place it
appears and inserting ‘‘Delegate’’.
(b) CONFORMING REFERENCE.—All references in
other laws to the Resident Commissioner to the United
States from Puerto Rico shall be considered to refer to
the Delegate to the United States from Puerto Rico.
SEC. 602. TERM OF OFFICE OF DELEGATE.
(a) TWO-YEAR TERM OF OFFICE.—Section 36 of the
Act of March 2, 1917 (39 Stat. 963; 48 U.S.C. 891) is
amended in the second sentence by striking ‘‘four’’ and
inserting ‘‘two’’.
(b) EXCEPTION.—The amendment made by this sec-
tion shall not apply to any individual who holds the office
of Resident Commissioner to the United States from Puer-
to Rico on the day before the date of the enactment of
this Act.
SEC. 603. PROCEDURE TO FILL VACANCY.
Section 36 of the Act of March 2, 1917 (39 Stat.
963; 48 U.S.C. 891) is amended in the last sentence by
striking ‘‘the governor’’ and all that follows and inserting
‘‘the office shall remain vacant until a successor is elected
and qualified. The successor may be elected in a special
election under such regulations as may be prescribed by
law, in which case the successor shall serve until the next
general election and until the next Delegate is elected and
qualified.’’.
TITLE VII—CONSULTATION OF
AND EFFORTS TO INCLUDE
TERRITORIES 
REGARDING
FREE TRADE AGREEMENTS
SEC. 701. CONSULTATION OF AND EFFORTS TO INCLUDE
TERRITORIES.
(a) TERRITORIES IN THE CARIBBEAN.—
(1) CONSULTATION.—The President shall con-
sult with representatives chosen by the territorial
governors of Puerto Rico and the Virgin Islands re-
garding any aspect of the process advanced by the
Miami Summit of the Americas Declaration of Prin-
ciples, on December 9, 1994, that would have an im-
pact on Puerto Rico or the Virgin Islands, respec-
tively, including the development of the agreement
regarding ‘‘Free Trade of the Americas’’.
(2) EFFORTS
TO
INCLUDE
IN
PROCESS
RE-
GARDING
FREE
TRADE
AGREEMENTS.—The Presi-
dent shall make every reasonable effort, as the
President determines to be appropriate, to include
representatives chosen by the territorial governors of
Puerto Rico and the Virgin Islands in the United
States delegation to any working group or task force
regarding any aspect of the process advanced by the
Miami Summit of the Americas Declaration of Prin-
ciples, on December 9, 1994, that would have an im-
pact on Puerto Rico or the Virgin Islands, respec-
tively, including the development of the agreement
regarding ‘‘Free Trade of the Americas’’.
(b) TERRITORIES IN THE PACIFIC.—
(1) CONSULTATION.—The President shall con-
sult with representatives chosen by the territorial
governors of American Samoa, Guam, and the
Northern Mariana Islands regarding any aspect of
the process advanced by the Bogor Asia-Pacific Eco-
nomic Cooperation Leaders’ Declaration of Common
Resolve, on November 15, 1994, that would have an
impact on American Samoa, Guam, or the Northern
Mariana Islands, respectively, including the goal of
free trade among APEC members by the year 2020.
(2) EFFORTS
TO
INCLUDE
IN
PROCESS
RE-
GARDING
FREE
TRADE
AGREEMENTS.—The Presi-
dent shall make every reasonable effort, as the
President determines to be appropriate, to include
representatives chosen by the territorial governors of
American Samoa, Guam, and the Northern Mariana
Islands in the United States delegation to any work-
ing group or task force regarding any aspect of the
process advanced by the Bogor Asia-Pacific Eco-
nomic Cooperation Leaders’ Declaration of Common
Resolve, on November 15, 1994, that would have an
impact on American Samoa, Guam, or the Northern
Mariana Islands, respectively, including the goal of
free trade among APEC members by the year 2020.
SEC. 702. TARIFF TREATMENT OF TERRITORIES.
(a) TARIFF TREATMENT COMPARABLE TO TREAT-
MENT OF TREATY COUNTRIES.—Subject to subsection (b),
the President shall give to American Samoa, Guam, the
Northern Mariana Islands, and the Virgin Islands no less
favorable tariff treatment than that accorded to countries
who are party to the North American Free Trade Agree-
ment or to other free trade agreements to which the
United States becomes a party.
(b) TARIFF STAGING AGREEMENT BETWEEN TERRI-
TORY AND UNITED STATES.—
(1) IN GENERAL.—Subsection (a) shall apply to
American Samoa, Guam, the Northern Mariana Is-
lands, or the Virgin Islands only if the government
of American Samoa, Guam, the Northern Mariana
Islands, or the Virgin Islands, as the case may be
reaches a tariff staging agreement with the Presi-
dent. Such agreement shall provide that tariffs be-
tween American Samoa, Guam, the Northern Mari-
ana Islands, or the Virgin Islands, as the case may
be, and the United States shall be phased out in
equal annual increments over a period of not more
than 10 years, beginning on the date of the comple-
tion of the agreement.
(2) CONSULTATION REGARDING AGREEMENT.—
Upon the request of the government of American
Samoa, Guam, the Northern Mariana Islands, or the
Virgin Islands, the President shall consult with the
representative chosen by the governor of such terri-
tory regarding the development of a tariff staging
agreement described in paragraph (1).
SEC. 703. INCLUSION OF TERRITORIES IN CUSTOMS TERRI-
TORY AND FREE TRADE AGREEMENTS.
Upon completion of a tariff staging agreement, as de-
scribed in section 702(b)(1), between the United States
and American Samoa, Guam, the Northern Mariana Is-
lands, or the Virgin Islands and upon the phasing out of
tariffs as provided for in the agreement—
(1) American Samoa, Guam, the Northern Mar-
iana Islands, or the Virgin Islands, as the case may
be, shall be included in the customs territory of the
United States; and
(2) the President shall take all steps that the
President determines to be necessary to include
American Samoa, Guam, the Northern Mariana Is-
lands, or the Virgin Islands, as the case may be, in
the North American Free Trade Agreement and all
other free trade agreements to which the United
States is a party.
Æ
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