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-
grams with an assessment of needs, costs, benefits
and provision of local funds where available. The
capital improvement plan shall take into account all
related economic development projects and plans by
the Commonwealth of Guam.
(4) There is hereby authorized a revolving fund
to establish an Economic Development Fund on
Guam with authority to assist in the financing of the
private sector needs of Guam in its efforts to achieve
a higher standard of living for its people as members
of the American community and to develop the eco-
nomic resources needed to meet the financial respon-
sibilities of local self-government. To this end, the
Economic Development Fund is authorized to pro-
vide financial and other assistance to increase in-
vestments (including loans, tax incentives, guaran-
tees and equity capital) and to start or expand com-
mercial businesses on Guam in order to provide em-
ployment and ownership opportunities for the resi-
dents of Guam. Participation by private banks and
savings and loan institutions in the Economic Devel-
opment Fund shall be encouraged. Funds shall be
made available to the Economic Development Fund
by Congress after the following conditions have been
met:
(A) The submission of a set of procedures
to Congress for the participation of private
lending institutions and for the processing of
applications for assistance, indicating the role
of the Economic Development Fund’s staff, out-
side consultants, and board review, and to guide
reviewers in making assistance and determining
eligibility.
(B) Submission of an economic develop-
ment plan, to be updated annually, by the Gov-
ernor of Guam to Congress, showing the pro-
posed amount, the proposed distribution of the
funds, and the terms on which the funds will be
made available. Such plan will take into account
any capital improvement projects and other pro-
grams related to economic development. The
funds granted to the Economic Development
Fund shall be a revolving fund, available to the
Economic Development Fund until expended.
(C) The Economic Development Fund
shall be headed by a five-member Board of Di-
rectors with financial experience for fixed terms
and selected by the Governor of Guam. The
Economic Development Fund shall issue a pub-
lic and audited report annually, setting forth
the administrative and programmatic develop-
ments for the year with full disclosure of the
utilization of its funds, the recipients of its as-
sistance, and the applications in process.
TITLE XII—TECHNICAL AMEND-
MENTS 
AND 
INTERPRETA-
TION
SEC. 1201. INTERPRETATION AND JURISDICTION.
(a) It is the intention of Congress that this Act pro-
vide complete internal self-government for the Common-
wealth of Guam and, to that end, that this Act be inter-
preted liberally to accomplish that purpose.
(b) When ruling upon the laws of the Commonwealth,
the courts of the United States shall give the same def-
erence to the laws of the Commonwealth as they give to
the laws of the several States. Jurisdiction to interpret the
provisions of this Act is vested in appropriate courts of
the United States and in the local courts of Guam.
SEC. 1202. CONTINUED EFFECTIVENESS OF LOCAL LAWS.
The laws of Guam in force on the date of enactment
of this Act, except as amended by this Act, are hereby
continued in force, subject to modification or repeal by the
Legislature of Guam.
SEC. 1203. ACTS REPEALED AND CONTINUED.
(a) All laws or parts of laws inconsistent with this
Act are hereby repealed to the extent of such inconsist-
ency.
(b) Upon the enactment of this Act, the following sec-
tions of the Organic Act of Guam (Act of August 1, 1950,
64 Stat. 384), as amended, are repealed: Sections 1, 2,
and 3; fourth sentence of section 11, sections 25, 27, 33,
and section 34.
(c) Upon the effective date of the Constitution adopt-
ed by the people of Guam, the following provisions of the
Organic Act of Guam (Act of August 1, 1950, 64 Stat.
384), as amended, and in effect at that time, are repealed:
Sections 5 (a) through (t), 6, 7, 8, 9, 9–A, 10; the first
three sentences of section 11; sections 12, 13, 14, 15, 16,
17, 18, 19, 20, 21, 22, 22A, 22B, 22C, 22D, 24, 26, 29,
30, and section 31.
(d) The following sections of the Organic Act of
Guam (Act of August 1, 1950, 64 Stat. 384), as amended,
shall continue in force and shall be deemed to be a part
of this Act: Section 5(u), beginning at the fifth sentence,
all the remainder of sections 11, 21–A, 24–A, section 28
as modified by Article 10 of this Act; 32, and section 35.
(e) Public Law 94–584 (90 Stat. 2899), as amended,
is repealed as it affects Guam.
SEC. 1204. EFFECTIVE DATE OF THE GUAM COMMON-
WEALTH ACT.
This Act, upon approval by Congress, shall be sub-
mitted to the registered voters of Guam for ratification
through a plebiscite to be held in accordance with the laws
of Guam. This Act will become effective upon the approval
of this Act by a majority of the voters who participate
in such plebiscite, and at that time, except as provided
in section 1203 of this Act, the Organic Act of Guam,
August 1, 1950, 64 Stat. 384, shall be repealed.
Æ
HR 100 IH——2
HR 100 IH——3
HR 100 IH——4