IB
Union Calendar No. 227
104TH CONGRESS
2D SESSION
H. R. 1332
[Report No. 104–471]
To establish certain policies and responsibilities with respect to the adminis-
tration of the Rongelap Resettlement Trust Fund, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
MARCH 28, 1995
Mr. GALLEGLY (for himself and Mr. FALEOMAVAEGA) introduced the following
bill; which was referred to the Committee on Resources
MARCH 5, 1996
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on March 28, 1995]
A BILL
To establish certain policies and responsibilities with respect
to the administration of the Rongelap Resettlement
Trust Fund, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Om-
nibus Insular Areas Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
TITLE I—RONGELAP
Sec. 101. Short title.
Sec. 102. Policy regarding assistance for resettlement of people of Rongelap.
Sec. 103. Responsibilities relating to Rongelap Resettlement Trust Fund.
Sec. 104. Trustee and other fund personnel.
Sec. 105. Resettlement expenditures and activities.
Sec. 106. Transfer of unexpended and unobligated funds.
TITLE II—AMERICAN SAMOA
Sec. 201. Short title.
Sec. 202. Findings.
Sec. 203. Authorization of funding.
Sec. 204. Establishment of trust.
Sec. 205. Uses of trust funds.
Sec. 206. Disbursement of trust funds.
Sec. 207. Audits.
Sec. 208. Audits by the United States.
Sec. 209. Settlement of disputes.
Sec. 210. Criminal Violations.
Sec. 211. Definitions.
TITLE III—COMMONWEALTH OF THE NORTHERN MARIANA
ISLANDS
Sec. 301. Termination of annual direct grant assistance.
TITLE IV—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 401. Short title.
Sec. 402. Congressional findings.
Sec. 403. Elimination of Office of Territorial and International Affairs.
Sec. 404. Certain activities not funded.
TITLE I—RONGELAP
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Rongelap Recovery and
Community Self-Reliance Act’’.
SEC. 102. POLICY REGARDING ASSISTANCE FOR RESETTLE-
MENT OF PEOPLE OF RONGELAP.
The purposes of this title are to improve the legal and
policy framework for fulfillment of the objectives of section
103(i) of Public Law 99–239 (99 Stat. 1783) and to pre-
scribe the manner in which the Rongelap Resettlement
Trust Fund established pursuant to Public Law 102–154
(105 Stat. 1009) shall be administered in order to achieve
the goal of early and safe resettlement of the people of
Rongelap. The measures set forth in this title are appro-
priate and necessary in light of the results of scientific stud-
ies on the habitability of Rongelap conducted pursuant to
section 103(i) of Public Law 99–239 and are intended to
enable the people of Rongelap to exercise greater self-deter-
mination and local self-government, and to take control of
their own destiny and become more self-reliant, through a
resettlement program consistent with the wishes of the
Rongelapese people themselves. United States assistance to
the people of Rongelap for purposes of resettlement shall be
as directed by Congress and will be completed upon deter-
mination by Congress that the United States has provided
the total of its contribution to the rehabilitation of Rongelap
Island and resettlement of the Rongelap people pursuant
to section 103(i) of Public Law 99–239 and applicable pro-
visions of Public Law 102–154. All such assistance shall
be subject to the financial accountability provisions of this
title and shall be provided within the framework of the gov-
ernment-to-government relationship between the Republic of
the Marshall Islands and the United States as defined by
the Compact of Free Association Act of 1985.
SEC. 103. RESPONSIBILITIES RELATING TO RONGELAP RE-
SETTLEMENT TRUST FUND.
(a) SECRETARY OF THE INTERIOR.—
(1) TRANSFER
OF
FUNDS
TO
TRUSTEE
OF
RONGELAP RESETTLEMENT TRUST FUND.—Consistent
with the Rongelap Resettlement Trust Fund agree-
ment between the Department of the Interior, the Re-
public of the Marshall Islands, and the Rongelap
Atoll Local Government, dated May 13, 1992, funds
appropriated in any fiscal year for the purpose of in-
creasing the corpus of the Rongelap Resettlement
Trust Fund shall be transferred by the Secretary of
the Interior to the trustee thereof, and the Department
of the Interior shall be administratively responsible
for effecting all such transfers of funds appropriated
for this purpose as required by law.
(2) LIMITATION OF DEPARTMENT OF THE INTE-
RIOR
ACTIVITIES
TO
THOSE
PROVIDED
BY
TRUST
FUND AGREEMENT.—The activities of the Department
of the Interior with respect to management of the
Rongelap Resettlement Trust Fund shall be limited to
those provided for in the trust fund agreement re-
ferred to in paragraph (1), as it may from time to
time be amended.
(b) TRUSTEE.—
(1) DUTIES, OBLIGATIONS AND LEGAL RESPON-
SIBILITIES.—The duties, obligations and legal respon-
sibilities of the trustee with respect to the Rongelap
Resettlement Trust Fund shall be as set forth in the
trust fund agreement referred to in subsection (a)(1),
to which the United States, the Republic of the Mar-
shall Islands and the Rongelap Atoll Local Govern-
ment are parties with legal rights and powers to en-
force the terms of the trust as set forth therein, and
in applicable law.
(2) DISTRIBUTION OF FUNDS.—All funds con-
tributed to the Rongelap Resettlement Trust Fund re-
ferred to in subsection (a) of this section shall be dis-
tributed by the trustee and used as determined by the
Rongelap Atoll Local Government consistent with ap-
plicable provisions of this title, Public Law 102–154,
and the resettlement plan submitted to the United
States Congress on March 15, 1995, in accordance
with Report 103–551 of the House of Representatives,
and referred to in Rongelap Atoll Local Government
Council Resolution No. 95–20.
(c) AUDITS.—
(1) IN GENERAL.—In addition, management or
use of trust assets shall be subject to the authority of
the Comptroller General of the United States to con-
duct financial audits of all trust transactions and ac-
tivities, in the same manner as provided in section
110(c) of Public Law 99–239. The Inspector General
of the Department of the Interior also shall be author-
ized to audit the use of Rongelap Resettlement Trust
Fund assets.
(2) NOTICE REGARDING USE OF FUNDS OUTSIDE
SCOPE OF TRUST.—If at any time it is determined by
the cognizant audit authority that funds distributed
by the trustee to the Rongelap Atoll Local Government
have been used for purposes outside the statutory
scope of the trust, such audit authority shall, at a
time and in a manner which is lawful and does not
interfere with any ongoing investigative process, law
enforcement activity or other activities or operations
required under applicable regulations and procedures,
notify the chairman of the Committee on Energy and
Natural Resources of the United States Senate, the
chairman of the Committee on Resources of the Unit-
ed States House of Representatives, the Republic of
the Marshall Islands, the Rongelap Atoll Local Gov-
ernment, and the trustee, of such determination so
that the trustee and the parties to the trust agreement
may exercise their legal rights and powers, including
recovery of such funds.
(d) RETENTION OF UNITED STATES AUTHORITY OVER
TRUST FUND.—The United States Congress shall retain its
authority over the trust fund as set forth in the trust agree-
ment referred to in subsection (a)(1) and applicable stat-
utes, including Public Law 102–154.
SEC. 104. TRUSTEE AND OTHER FUND PERSONNEL.
(a) TRUSTEE QUALIFICATIONS.—The trustee of the
Rongelap Resettlement Trust Fund shall be a qualified
United States financial institution with considerable expe-
rience in the administration of similar trusts and which
serves as the trustee manager or custodian of over
$1,000,000,000 in assets. If the trustee on the date of enact-
ment of this Act does not meet the qualification criteria,
a new trustee which does satisfy these requirements shall
in due course be appointed subject to the procedures set forth
in the trust fund agreement referred to in section 103(a).
(b) INVESTMENT FUND MANAGERS AND ADVISERS AND
CONSULTANTS.—Investment fund managers and advisers or
consultants designated by the Rongelap Atoll Local Govern-
ment in accordance with the trust agreement to provide
services in connection with management of the Rongelap
Resettlement Trust Fund must be registered with the Secu-
rities and Exchange Commission and be in compliance with
applicable provisions of the Investment Advisers Act of 1940
(15 U.S.C. 80b–1 et seq.)
SEC. 105. RESETTLEMENT EXPENDITURES AND ACTIVITIES.
(a) ACTIVITIES.—The Rongelap Atoll Local Govern-
ment shall have the discretion, to the extent determined by
the Rongelap Atoll Local Government Council acting within
its lawful authority, to include in the resettlement program
activities described in the Memorandum of Understanding
of February 21, 1992, between the Department of the Inte-
rior, Department of Energy, the Republic of the Marshall
Islands, and the Rongelap Atoll Local Government.
(b) USE OF ANNUAL INCOME.—
(1) IN GENERAL.—With respect to each fiscal
year following the establishment of the Rongelap Re-
settlement Trust Fund pursuant to Public Law 102–
154, the authority of the Rongelap Atoll Local Gov-
ernment and the trustee, within the statutory scope
and purpose of the trust, shall include distribution of
up to 50 percent of the annual income (interest and
earnings) of the trust fund, but in no year more than
$500,000, increased in accordance with paragraph
(2), to provide local government support and pro-
grams for the benefit of the people of Rongelap, in-
cluding funding for food, shelter, medicine, infant
care, sanitation, personal hygiene and other basic
human needs arising from dislocation and adjustment
during resettlement, as well as local government ad-
ministrative and operations costs and expenses aris-
ing directly from or which are directly connected to
the resettlement process.
(2) ADJUSTMENT.—The amount referred to in
paragraph (1) shall be increased annually by the
same proportion as the percentage increase in the
United States Consumer Price Index For All Urban
Consumers (published by the Bureau of Labor Statis-
tics, Department of Labor) for the most recent year
preceding the date on which the increase, if any, is
calculated.
(c) AVAILABILITY OF ASSISTANCE FOR RESETTLEMENT
IN
THE
MARSHALL
ISLANDS
OTHER
THAN
ON
RONGELAP.—
(1) GOAL OF RESETTLEMENT ON RONGELAP.—
The Congress supports the goal of enabling the entire
Rongelap community to achieve resettlement in ac-
cordance with Resolution Number 95–20 adopted by
the Rongelap Atoll Local Government Council on
March 9, 1995, consistent with the findings of sci-
entific studies conducted pursuant to section 103(i) of
Public Law 99–239 which indicate that agreed upon
radiation exposure limits can be met at Rongelap Is-
land if certain risk mitigation measures are taken.
(2) RESETTLEMENT ASSISTANCE.—(A) To ensure
that members of the Rongelap community who do not
choose to return to Rongelap in light of these sci-
entific findings are able to end their dislocation and
settle somewhere in the Marshall Islands, assistance
for construction of family housing and other resettle-
ment assistance may be provided to members of the
Rongelap community who elect to settle at a location
in the Marshall Islands other than Rongelap Atoll on
the same basis as assistance provided for those who
elect to return to Rongelap, subject to the authority
and discretion of the Rongelap Atoll Local Govern-
ment to determine the schedule, terms, specifications
and scope of such assistance in the context of the over-
all community resettlement program at Rongelap
Atoll, which shall remain the primary objective for
management and use of trust fund assets.
(B) Assistance provided pursuant to subpara-
graph (A) to those who elect to resettle at a place
other than Rongelap shall not include measures to be
employed or benefits to be provided for those resettling
at Rongelap Atoll for the purpose of mitigating risks
posed by radiological conditions at Rongelap.
(C) Any Rongelapese person receiving assistance
for resettlement at a location other than Rongelap
Atoll pursuant to subparagraph (A) shall be ineligible
for such assistance for the purposes of resettling again
later at Rongelap Atoll. The preceding sentence shall
cease to apply once all members of the Rongelap com-
munity, as defined and recognized by the Nuclear
Claims Tribunal established pursuant to section 177
of the Compact of Free Association (as contained in
Public Law 99–239), have received resettlement as-
sistance at Rongelap or assistance on the same basis,
except as provided in subparagraph (B), at another
location of their choosing.
(3) SCOPE OF TRUST.—The assistance activities
authorized in this section shall be deemed to be within
the scope of the trust notwithstanding any provision
of Public Law 102–154 to the contrary.
(d) FOOD IMPORTATION.—The trustee of the Rongelap
Resettlement Trust Fund shall make no distribution from
the corpus of the Trust which as a matter of prudent finan-
cial management in the judgment of the trustee would be
inconsistent with the objective of ensuring that funds will
be available for as long as the trust fund agreement referred
to in section 103(a)(1) is in effect for the purpose of provid-
ing imported food and locally produced food which meets
relevant health and safety standards in amounts sufficient
to meet the nutritional needs of the Rongelap community
residing at Rongelap Atoll.
SEC. 106. TRANSFER OF UNEXPENDED AND UNOBLIGATED
FUNDS.
All funds appropriated pursuant to the authorization
contained in section 103(i) of Public Law 99–239 for sci-
entific radiological studies to determine the habitability of
Rongelap Island in the Republic of the Marshall Islands,
or which have been obligated for use by the ‘‘Rongelap Re-
settlement Project’’ to support such studies, which as of the
date of enactment of this Act have not been expended shall
be transferred to the Rongelap Atoll Local Government and
expended only pursuant to a budget approved by the
Rongelap Local Government Council and for activities con-
sistent with the purposes for which such funds were appro-
priated, including scientific research and island rehabilita-
tion measures connected to resettlement of Rongelap.
TITLE II—AMERICAN SAMOA
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘American Samoa Eco-
nomic Development Act of 1995’’.
SEC. 202. FINDINGS.
The Congress finds that—
(1) funding for the United States territory of
American Samoa has been based on the joint resolu-
tion entitled ‘‘Joint Resolution to provide for accept-
ing, ratifying, and confirming cessions of certain is-
lands of the Samoan group to the United States, and
for other purposes’’, as amended (48 U.S.C. 1661),
with commitments being made on a yearly basis;
(2) American Samoa is locally self-governing
with a constitution of its own adoption and the direct
election of the Governor since 1977;
(3) the territory of American Samoa has had dif-
ficulty in planning and implementing comprehensive
and sustainable infrastructure based solely on annual
ad hoc grants; and
(4) the territory of American Samoa and the
United States would benefit from a multiyear funding
commitment which promotes economic development
and self-sufficiency and requires compliance with fi-
nancial management accounting standards, the estab-
lishment of semiautonomous public utility authorities
utilizing cost-recovery principles, and the phaseout of
Federal subsidies for Government operations.
SEC. 203. AUTHORIZATION OF FUNDING.
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of the Interior for the Government
of American Samoa $34,500,000, backed by the full faith
and credit of the United States, for each of fiscal years 1996
through 2005. Such amounts shall not be released to the
Government of American Samoa if the conditions in this
title are not met, and are subject to the limits specified in
the table in subsection (b), to be used for—
(1) construction of capital assets of American
Samoa;
(2) the operations of the Government of Amer-
ican Samoa; and
(3) reduction of unbudgeted debt.
(b) TABLE OF MULTIYEAR FUNDING.—The table re-
ferred to in this subsection is as follows:
[In millions of dollars]
Fiscal year
Year #
Operations
Construction
Deficit reduction
(100% match)
Total
1996 .....................
23.0
8.5
3.0
34.5
1997 .....................
23.0
8.5
3.0
34.5
1998 .....................
23.0
8.5
3.0
34.5
1999 .....................
21.0
10.5
3.0
34.5
2000 .....................
18.0
13.5
3.0
34.5
2001 .....................
15.0
19.5
34.5
2002 .....................
12.0
22.5
34.5
2003 .....................
9.0
25.5
34.5
2004 .....................
6.0
28.5
34.5
2005 .....................
3.0
31.5
34.5
SEC. 204. ESTABLISHMENT OF TRUST.
(a) IN GENERAL.—The Government of American
Samoa shall establish a trust into which the amounts ap-
propriated pursuant to section 203 are placed.
(b) TRUSTEE.—
(1) IN GENERAL.—A trustee to administer the
trust established by this section shall be nominated by
the Governor of American Samoa with concurrence of
the Secretary of the Interior, and confirmed by both
Houses of the Legislature of American Samoa pursu-
ant to local law, and shall be a United States finan-
cial institution with considerable experience in the
administration of similar trusts and which serves as
the 
trustee 
manager 
or 
custodian 
of 
over
$1,000,000,000 in trust assets (hereafter in this title
referred to as the ‘‘trustee’’). The trustee shall not be
the independent auditor required by section 207. The
trustee shall be paid by the Government of American
Samoa.
(2) REPLACEMENT.—The trustee may be termi-
nated only by mutual agreement between the trustee
and the Government of American Samoa, or at the
end of its contract for services as trustee, or for good
cause. Termination of a trustee for good cause must
be recommended by the Governor of American Samoa
and approved by both Houses of the Legislature of
American Samoa.
(3) OTHER TERMS AND CONDITIONS.—The trust-
ee shall be subject to such other conditions as the Gov-
ernment of American Samoa may provide under local
law so long as such conditions do not conflict with
Federal laws or regulations or with applicable trust
fund agreement provisions governing administration
of the trust.
(4) RESPONSIBILITY OF TRUSTEE.—A qualified
trustee appointed under this title shall perform its
duties subject to the governing law of the jurisdiction
in which the principal office of the trustee is located.
Administration of the trust to achieve the objectives of
this title shall be in accordance with a trust fund
agreement between the Government of American
Samoa and the trustee governing the trust. Such
agreement shall provide that the trustee shall use rea-
sonable and prudent care and reasonable and prudent
due diligence in the exercise of the powers and the
performance of the duties prescribed in this title and
the trust agreement. The trust agreement may pre-
scribe further the specific duties of the trustee, as well
as those of other parties identified in this title, in-
cluding audit authorities and the Government of
American Samoa.
(5) LIABILITY.—
(A) IN GENERAL.—The trustee shall be lia-
ble for any release of funds which is not author-
ized by this title. Upon a determination of liabil-
ity under this subsection, the trustee shall reim-
burse the United States Treasury in the amount
of the unauthorized release of funds within 90
days of such determination.
(B) EXCEPTION.—The trustee shall not be
liable for—
(i) any mistake or other action taken
in good faith, or for any loss unless result-
ing from the trustee’s own default, neg-
ligence, or bad faith; or
(ii) any act or omission mandated by
law or by the process or final order of any
court of appropriate jurisdiction.
(C) REIMBURSEMENT.—In the event the
trustee is determined by a court to have acted in
bad faith in breach of its duties under this title,
the trustee shall reimburse the United States
Treasury in the amount of any loss resulting
therefrom.
(c) TRUST FUNDS.—
(1) DEPOSIT; INVESTMENT.—The trust funds
shall be deposited in an account or accounts of a fi-
nancial institution insured by the Federal Deposit
Insurance Corporation pursuant to regulations and
direction of the Department of the Treasury, and, to
the extent such funds are available for investment,
may be invested by the Government of American
Samoa, or the trustee if so designated, in only feder-
ally insured accounts or issues of bonds, notes or other
redeemable instruments of the Government of the
United States.
(2) USE OF INTEREST AND DIVIDENDS.—Interest
or dividends earned from investment of trust funds
under paragraph (1) may be used for projects con-
tained on the approved master plan of capital needs
developed under section 205, or for the costs of man-
aging the trust.
(3) 
AVAILABILITY
AND
USE
OF
FEDERAL
FUNDS.—Federal funds made available for the pur-
poses described in section 203(a)(1) may be used only
on projects from the approved master plan of capital
needs.
(d) REPORTS.—Within 90 days after the end of each
fiscal year, the trustee shall submit an annual report to
the chairmen and ranking minority members of the Com-
mittee on Energy and Natural Resources and the Commit-
tee on Appropriations of the United States Senate, the Com-
mittee on Resources and the Committee on Appropriations
of the United States House of Representatives, the Govern-
ment of American Samoa, the Comptroller General of the
United States, and the Inspector General of the Department
of the Interior. The report shall include at a minimum the
financial statements of the account or accounts in which
it holds trust funds pursuant to this title.
SEC. 205. USES OF TRUST FUNDS.
(a) CAPITAL NEEDS.—
(1) MASTER
PLAN
OF
CAPITAL
NEEDS.—No
funds appropriated pursuant to this title shall be re-
leased by the trustee for construction of capital assets
without the submission by the Government of Amer-
ican Samoa to the trustee of a master plan of capital
needs that ranks projects in order of priority for at
least five years. The master plan shall be approved by
the Governor and passed by both Houses of the Legis-
lature of American Samoa pursuant to such laws as
the Government of American Samoa may enact. The
master plan of capital needs may be amended at any
time, but all amendments must be approved by the
Governor and passed by both Houses of the Legisla-
203(a)(3) shall be released by the trustee on submission by
the Government of American Samoa or the relevant semi-
autonomous agency of proof of payment from non-Federal
sources for debt reduction.
SEC. 207. AUDITS.
(a) IN GENERAL.—
(1) REQUIRED.—Beginning with fiscal year
1996, the Government of American Samoa must ob-
tain, at its own expense, a comprehensive financial
audit meeting the requirements of chapter 75 of title
31, United States Code, and subtitle A, part 12 of
title 43, Code of Federal Regulations, which requires
that an independent audit be made in accordance
with generally accepted government auditing stand-
ards covering financial and compliance audits. The
audit shall determine whether the financial state-
ments of the American Samoa Government present
fairly its financial position and the results of its fi-
nancial operations in conformance with generally ac-
cepted accounting principles. The audit shall include
the funds held in trust pursuant to this title.
(2) INDEPENDENT AUDITOR’S OPINION.—Begin-
ning with fiscal year 2000, the audit required under
this section must include all the requirements of para-
graph (1) and an independent auditor’s opinion that
the financial statements of the Government of Amer-
ican Samoa present fairly, in all material respects,
its financial position and the results of its financial
operations, in conformance with generally accepted
accounting principles.
(b) SUBMISSION
OF AUDIT REPORT
TO UNITED
STATES.—Reports of audits required in this section along
with the local government’s corrective action plan to resolve
any deficiencies reported shall be transmitted by the Gov-
ernor of American Samoa to the chairmen and ranking
members of the Committee on Energy and Natural Re-
sources and the Committee on Appropriations of the United
States Senate, the Committee on Resources and the Com-
mittee on Appropriations of the United States House of
Representatives, the Comptroller General of the United
States, and the Inspector General of the Department of the
Interior within 180 days of the end of each fiscal year for
which the United States provides funding under this title.
(c) FAILURE TO OBTAIN AUDIT.—In the event the
Government of American Samoa does not obtain a qualify-
ing audit within the time required by this section, the In-
spector General of the Department of the Interior shall no-
tify the appropriate Federal agencies and the trustee not
to disburse additional funds available under section
203(a)(2) for the operations of the Government of American
Samoa, or any unobligated funds available under section
203(a)(1) for the construction of capital assets, until such
time as a qualifying audit is received and the previously
reported deficiencies corrected and the report of that audit
is forwarded as required by this section. Notwithstanding
the preceding sentence, one emergency disbursement may be
made per year under the provisions of section 206 of this
title, even if a qualifying audit report is not obtained or
the deficiencies identified by an audit have not been cor-
rected.
SEC. 208. AUDITS BY THE UNITED STATES.
(a) IN GENERAL.—The Comptroller General of the
United States and the Inspector General of the Department
of the Interior shall have the authority to conduct audits
of all funds of all branches and semiautonomous authorities
of the Government of American Samoa. Nothing in this title
shall be construed to restrict the authority of these or other
Federal agencies to audit government funds as authorized
by Federal law.
(b) CORRECTIVE ACTION.—Where appropriate, audit
reports of the Comptroller General and the Inspector Gen-
eral shall include reasonable time limits on recommenda-
tions for corrective action. Such recommendations and the
respective time limits may be amended from time to time
as the audit authority deems appropriate. Deficiencies on
which recommendations for corrective action are made shall
be designated major or minor.
(c) AUDIT COMMENT.—The Government of American
Samoa, and any relevant semiautonomous agency, shall be
afforded the opportunity to comment on, and propose reme-
dial action to, draft audit reports before they become final,
and the comments and proposed corrective action shall be
published as part of the final audit report.
(d) OTHER LAWS.—The requirements of this section
are in addition to any other Federal law governing finan-
cial audits of American Samoa.
(e) SUBMISSION
OF REPORTS.—Audit reports pre-
pared by the Comptroller General or the Inspector General
shall be submitted to the chairmen and ranking members
of the Committee on Energy and Natural Resources and
the Committee on Appropriations of the United States Sen-
ate, the Committee on Resources and the Committee on Ap-
propriations of the United States House of Representatives,
the Government of American Samoa, and the trustee.
(f) FAILURE TO CORRECT DEFICIENCIES OF UNITED
STATES AUDITORS.—If the cognizant audit authority deter-
mines that the Government of American Samoa has not cor-
rected a major deficiency noted in audit reports submitted
pursuant to subsection (b) within the time prescribed for
that major deficiency, the cognizant audit authority shall
notify the appropriate Federal agencies and the trustee not
to disburse additional funds available under section
203(a)(2) for the operations of the Government of American
Samoa, or any unobligated funds available under section
203(a)(1) for the construction of capital assets, until such
time as the cognizant audit authority notifies the trustee
and the appropriate Federal agencies that the major defi-
ciency has been corrected, or disallowed costs have been re-
covered, whichever may be appropriate.
(g) NOTICE REGARDING USE
OF FUNDS OUTSIDE
SCOPE OF TRUST.—If at any time it is determined by the
cognizant audit authority that funds distributed by the
trustee to the Government of American Samoa have been
used for purposes outside the statutory scope of the trust,
such audit authority shall, at a time and in a manner
which is lawful and does not interfere with any ongoing
investigative process, law enforcement activity or other ac-
tivities or operations required under applicable regulations
and procedures, notify the chairman and ranking member
of the Committee on Energy and Natural Resources of the
United States Senate, the chairman and ranking member
of the Committee on Resources of the United States House
of Representatives, the Government of American Samoa,
and the trustee, of such determination so that the trustee
and the Government of American Samoa may exercise their
legal rights and powers, including recovery of such funds.
SEC. 209. SETTLEMENT OF DISPUTES.
The High Court of American Samoa is authorized to
resolve disputes which arise under this title pursuant to its
rules of procedure.
SEC. 210. CRIMINAL VIOLATIONS.
Prosecution of violations of Federal or local criminal
law which occur concerning funds appropriated pursuant
to this title may be brought in local and Federal courts,
as appropriate.
SEC. 211. DEFINITIONS.
As used in this title, the following definitions apply:
(1) The term ‘‘area of disbursement’’ means one
of the three authorized purposes for which funds may
be disbursed found at paragraphs (1) through (3) of
section 203(a).
(2) The term ‘‘cognizant audit authority’’ means
the Comptroller General of the United States, or the
Inspector General of the Department of the Interior.
(3) The term ‘‘extreme or territorial emer-
gencies’’ means serious situations or occurrences
which happen unexpectedly and have a significant
impact on the finances of the territory, including acts
of God which cause severe disruption of public serv-
(D) The board of directors has control over
the budget for that agency, although the entity
may be funded in part by grants or loans from
the Federal Government or the Government of
American Samoa.
(E) The board of directors has the authority
to set rates or fees collected by the agency for the
service it provides, subject to local law.
(6) The term ‘‘unbudgeted debt’’ means debt in-
curred for a lawful purpose by the Government of
American Samoa, or any of its agencies, departments,
or offices, in fiscal years prior to fiscal year 1996, in-
cluding debt which has been caused because more
funds were spent than were lawfully appropriated for
a particular budget item or because revenue for a
budget item did not meet budgeted estimates.
TITLE III—COMMONWEALTH OF
THE NORTHERN MARIANA IS-
LANDS
SEC. 301. TERMINATION OF ANNUAL DIRECT GRANT AS-
SISTANCE.
(a) TERMINATION.—Pursuant to section 704(d) of the
Covenant to Establish a Commonwealth of the Northern
Mariana Islands in Political Union with the United States
of America (48 U.S.C. 1681 note), the annual payments
under section 702 of the Covenant shall terminate as of Sep-
tember 30, 1995.
(b) REPEAL.—Sections 3 and 4 of the Act of March
24, 1976 (Public Law 94–241; 48 U.S.C. 1681 note), as
amended, are repealed, effective October 1, 1995.
(c) CONFORMING AMENDMENTS.—Section 5 of such
Act (48 U.S.C. 1681 note) is amended—
(1) by striking out ‘‘agreement identified in sec-
tion 3 of this Act’’ and inserting in lieu thereof
‘‘Agreement of the Special Representatives on Future
United States Financial Assistance for the Govern-
ment of the Northern Mariana Islands, executed July
10, 1985, between the special representative of the
President of the United States and the special rep-
resentatives of the Governor of the Northern Mariana
Islands’’; and
(2) by striking out ‘‘Committee on Interior and
Insular Affairs’’ and inserting in lieu thereof ‘‘Com-
mittee on Resources’’.
TITLE IV—TERRITORIAL ADMIN-
ISTRATIVE CESSATION ACT
SEC. 401. SHORT TITLE.
This title may be cited as the ‘‘Territorial Administra-
tive Cessation Act’’.
SEC. 402. CONGRESSIONAL FINDINGS.
The Congress finds that—
(1) each of the four political subdivisions of the
United Nations Trust Territory of the Pacific Islands,
known as the Japanese Mandated Islands, have suc-
cessfully entered into distinct self-governing entities,
thereby culminating in the final termination of the
Trusteeship and the end of the trusteeship responsibil-
ities 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 five 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 five
decades; and
(5) Federal-territorial relations can be enhanced
and Federal fiscal conditions improved by the elimi-
nation of unnecessary Federal bureaucracy.
SEC. 403. ELIMINATION OF OFFICE OF TERRITORIAL AND
INTERNATIONAL AFFAIRS.
(a) IN GENERAL.—The Office of Territorial and Inter-
national Affairs of the Department of the Interior, estab-
lished pursuant to the Order of the Secretary of the Interior
3046, of February 14, 1980, as amended, is hereby abol-
ished.
(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 amend-
ment 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.
SEC. 404. CERTAIN ACTIVITIES NOT FUNDED.
Amounts may not be made available for the following
program activities for assistance to territories for fiscal
years beginning after September 30, 1995, as identified
under the appropriations account numbered 14–0412–0–1–
808:
(1) technical assistance, item 00.12;
(2) maintenance assistance, item 00.14;
(3) disaster fund, item 00.17; and
(4) insular management controls, item 00.19.
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