II 113th CONGRESS 1st Session S. 1268 IN THE SENATE OF THE UNITED STATES June 27, 2013 Mr. Wyden (by request) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To approve an agreement between the United States and the Republic of Palau.

1. Approval of the agreement between the United States and the Republic of Palau (a) Definitions In this section: (1) Agreement The term Agreement means the Agreement and appendices signed by the United States and the Republic of Palau on September 3, 2010. (2) Compact of free association The term Compact of Free Association means the Compact of Free Association between the Government of the United States of America and the Government of Palau ( 48 U.S.C. 1931 note; Public Law 99–658). (b) Results of compact review (1) In general Title I of Public Law 99–658 ( 48 U.S.C. 1931 et seq. ) is amended by adding at the end the following: 105. Results of compact review (a) In general The Agreement and appendices signed by the United States and the Republic of Palau on September 3, 2010 (referred to in this section as the Agreement ), in connection with section 432 of the Compact of Free Association between the Government of the United States of America and the Government of Palau ( 48 U.S.C. 1931 note; Public Law 99–658 ) (referred to in this section as the Compact of Free Association ), are approved— (1) except for the extension of article X of the Agreement Regarding Federal Programs and Services, and Concluded Pursuant to article II of title II and section 232 of the Compact of Free Association; and (2) subject to the provisions of this section. (b) Withholding of funds If the Republic of Palau withdraws more than $5,000,000 from the trust fund established under section 211(f) of the Compact of Free Association in any of fiscal years 2011, 2012, or 2013, amounts payable under sections 1, 2(a), 3, and 4(a), of the Agreement shall be withheld from the Republic of Palau until the date on which the Republic of Palau reimburses the trust fund for the total amounts withdrawn that exceeded $5,000,000 in any of those fiscal years. (c) Funding for certain provisions under Section 105 of compact of free association Within 30 days of enactment of this section, out of any funds in the Treasury not otherwise appropriated, the Secretary of the Treasury shall transfer to the Secretary of the Interior such sums as are necessary for the Secretary of the Interior to implement sections 1, 2(a), 3, 4(a), and 5 of the Agreement, which sums shall remain available until expended without any further appropriation. (d) Authorizations of appropriations There are authorized to be appropriated— (1) to the Secretary of the Interior to subsidize postal services provided by the United States Postal Service to the Republic of Palau, the Republic of the Marshall Islands, and the Federated States of Micronesia $1,500,000 for each of fiscal years 2014 through 2024, to remain available until expended; and (2) to the head of each Federal entity described in paragraphs (1), (3), and (4) of section 221(a) of the Compact of Free Association (including the successor of each Federal entity) to carry out the responsibilities of the Federal entity under section 221(a) of the Compact of Free Association such sums as are necessary, to remain available until expended. . (2) Offset Section 3 of the Act of June 30, 1954 (68 Stat. 330, 82 Stat. 1213, chapter 423), is repealed. (c) Payment schedule; withholding of funds; funding (1) Compact section 211(f) fund Section 1 of the Agreement shall be construed as though the section reads as follows: 1. Compact section 211( f ) fund The Government of the United States of America (the Government of the United States ) shall contribute $30,250,000 to the Fund referred to in section 211(f) of the Compact in accordance with the following schedule— (1) $11,000,000 in fiscal year 2014; (2) $3,000,000 in each of fiscal years 2015 through 2017; (3) $2,000,000 in each of fiscal years 2018 through 2022; and (4) $250,000 in fiscal year 2023. . (2) Infrastructure maintenance fund Subsection (a) of section 2 of the Agreement shall be construed as though the subsection reads as follows: (a) The Government of the United States shall provide a grant of $6,912,000 for fiscal year 2014 and a grant of $2,000,000 annually from the beginning of fiscal year 2015 through fiscal year 2024 to create a trust fund (the Infrastructure Maintenance Fund ) to be used for the routine and periodic maintenance of major capital improvement projects financed by funds provided by the United States. The Government of the Republic of Palau will match the contributions made by the United States by making contributions of $150,000 to the Infrastructure Maintenance Fund on a quarterly basis from the beginning of fiscal year 2014 through fiscal year 2024. Implementation of this subsection shall be carried out in accordance with the provisions of Appendix A to this Agreement. . (3) Fiscal consolidation fund Section 3 of the Agreement shall be construed as though the section reads as follows: 3. Fiscal consolidation fund The Government of the United States shall provide the Government of Palau $10,000,000 in fiscal year 2014 for deposit in an interest bearing account to be used to reduce government arrears of Palau. Implementation of this section shall be carried out in accordance with the provisions of Appendix B to this Agreement. . (4) Direct economic assistance Subsection (a) of section 4 of the Agreement shall be construed as though the subsection reads as follows: (a) In addition to the economic assistance of $13,147,000 provided to the Government of Palau by the Government of the United States in each of fiscal years 2010, 2011, 2012, and 2013, and unless otherwise specified in this Agreement or in an Appendix to this Agreement, the Government of the United States shall provide the Government of Palau $69,250,000 in economic assistance as follows— (1) $12,000,000 in fiscal year 2014; (2) $11,500,000 in fiscal year 2015; (3) $10,000,000 in fiscal year 2016; (4) $8,500,000 in fiscal year 2017; (5) $7,250,000 in fiscal year 2018; (6) $6,000,000 in fiscal year 2019; (7) $5,000,000 in fiscal year 2020; (8) $4,000,000 in fiscal year 2021; (9) $3,000,000 in fiscal year 2022; and (10) $2,000,000 in fiscal year 2023. The funds provided in any fiscal year under this subsection for economic assistance shall be provided in 4 quarterly payments (30 percent in the first quarter, 30 percent in the second quarter, 20 percent in the third quarter, and 20 percent in the fourth quarter) unless otherwise specified in this Agreement or in an Appendix to this Agreement. . (5) Infrastructure projects Section 5 of the Agreement shall be construed as though the section reads as follows: 5. Infrastructure projects The Government of the United States shall provide grants totaling $40,000,000 to the Government of Palau as follows: $30,000,000 in fiscal year 2014; and $5,000,000 annually in each of fiscal years 2015 and 2016; towards 1 or more mutually agreed infrastructure projects in accordance with the provisions of Appendix C to this Agreement. . (d) Continuing programs and laws Section 105(f)(1)(B)(ix) of the Compact of Free Association Amendments Act of 2003 ( 48 U.S.C. 192ld(f)(1)(B)(ix) ) is amended by striking 2009 and inserting 2024 . (e) Passport requirement Section 141 of Article IV of Title One of the Compact of Free Association shall be construed and applied as if it read as follows: 141. Passport requirement (a) Any person in the following categories may be admitted to, lawfully engage in occupations, and establish residence as a nonimmigrant in the United States and its territories and possessions without regard to paragraphs (5) or (7)(B)(i)(II) of section 212(a) of the Immigration and Nationality Act ( 8 U.S.C. 1182(a)(5) or (a)(7)(B)(i)(II)), provided that the passport presented to satisfy section 212(a)(7)(B)(i)(I) of such Act is a valid unexpired machine-readable passport that satisfies the internationally accepted standard for machine readability— (1) a person who, on September 30, 1994, was a citizen of the Trust Territory of the Pacific Islands, as defined in title 53 of the Trust Territory Code in force on January 1, 1979, and has become and remains a citizen of Palau; (2) a person who acquires the citizenship of Palau, at birth, on or after the effective date of the Constitution of Palau; or (3) a naturalized citizen of Palau, who has been an actual resident of Palau for not less than five years after attaining such naturalization and who holds a certificate of actual residence. (b) Such persons shall be considered to have the permission of the Secretary of Homeland Security of the United States to accept employment in the United States. (c) The right of such persons to establish habitual residence in a territory or possession of the United States may, however, be subjected to non-discriminatory limitations provided for— (1) in statutes or regulations of the United States; or (2) in those statutes or regulations of the territory or possession concerned which are authorized by the laws of the United States. (d) Section 141(a) does not confer on a citizen of Palau the right to establish the residence necessary for naturalization under the Immigration and Nationality Act, or to petition for benefits for alien relatives under that Act. Section 141(a), however, shall not prevent a citizen of Palau from otherwise acquiring such rights or lawful permanent resident alien status in the United States. .