[DOCID: f:sr017.110]
From the Senate Reports Online via GPO Access
[wais.access.gpo.gov]
Calendar No. 42
110th Congress Report
SENATE
1st Session 110-17
======================================================================
COMPACTS OF FREE ASSOCIATION AMENDMENTS ACT OF 2007
_______
February 15, 2007.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 283]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 283) to amend the Compact of Free
Association Amendments Act of 2003, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
Purpose of the Measure
The purpose of S. 283 is to approve subsidiary agreements
to the Compact of Free Association, as amended, between the
Government of the United States of America and the Government
of the Federated States of Micronesia, and to the Compact of
Free Association, as amended, between the Government of the
United States of America and the Government of the Republic of
the Marshall Islands, and to make other conforming, clarifying,
and technical amendments to the Compact of Free Association
Amendments Act of 2003 (CFAAA), (Public Law 108-188).
Summary of Major Provisions
S. 283 consists of nine sections. Section 1 provides a
short title. Sections 2 and 3 approves agreements negotiated
between the United States and the Federated States of
Micronesia (FSM), and between the United States and the
Republic of the Marshall Islands (RMI) regarding disaster
assistance and makes conforming amendments to the CFAAA.
Section 4 clarifies the eligibility of students from the FSM
and RMI for certain education programs, and the eligibility of
the Government, institutions, and people of the Republic of
Palau for certain programs, under the CFAAA. Section 5
clarifies that citizens of the FSM and RMI who legally reside
in the United States are eligible for the programs and services
of Legal Services Corporation. Section 6 makes numerous
grammatical and technical edits to the CFAAA. Section 7
restores the authorization for FSM, Palau and the RMI to
transmit videotaped programming. Section 8 allows Palau to
deposit a payment, otherwise due the United States in
connection with a Compact road project, into a trust fund for
road maintenance. Section 9 clarifies the tax-free status of
the trust funds established for the FSM and RMI under their
respective Compacts.
Background and Need
In 1947, the United States became Administrator of the
United Nation's Trust Territory of the Pacific Islands,
composed of the Marshall, Caroline, Palau and Mariana (except
Guam) islands. All of these islands were captured from Japan in
World War II and include those that now comprise the FSM and
the RMI. U.S. obligations under the Trusteeship included
promoting self-government or independence of the inhabitants.
In the case of the FSM and RMI, negotiations on political
status culminated with the signing of the Compact of Free
Association, which was approved by Congress, under Public Law
99-239, in 1986. The new relationship of free association
allowed for termination of the U.N. Trusteeship, international
recognition of the FSM and RMI as sovereign nations, but also
for the continuation of the special political, economic, and
security relationship between the United States and these new
nations.
In 2003, Congress enacted the CFAAA, which separated the
Compact into two separate agreements, and approved amendments
to extend and restructure the financial and program assistance
provisions. One area that remained unresolved in the new law,
however, was how disaster assistance would be handled. The
Federal Emergency Management Agency (FEMA) objected to
continuing to provide disaster assistance under the Compacts
because, in its experience, the FSM and RMI governments lacked
the capacity to properly meet their administrative and support
responsibilities. Simply terminating FEMA's role was
unacceptable to Congress because there would likely be
disasters in the future, and a program would be needed to fund
and coordinate disaster assistance to meet the needs of the
population and to reconstruct essential infrastructure.
Accordingly, section 105(f)(1)(A) of the CFAAA directed the
Secretary of State, in consultation with FEMA, to negotiate
specific disaster assistance agreements with the FSM and RMI
and report to Congress on the outcome of those negotiations,
including recommendations on any changes to law.
On August 19, 2004, the State Department transmitted to
Congress new agreements and the legislative language needed to
bring them into effect. Generally, the agreements provide that
FEMA and the Office of Foreign Disaster Assistance (OFDA) will
jointly consult on any disaster damage assessments and on
disaster declaration recommendations. FEMA will provide the
funding to meet FEMA reconstruction and response requirements
and other necessary expenses, and OFDA will be responsible for
administering disaster assistance and coordinating the U.S.
response to declared disasters.
Prior to introduction of the legislative language as
transmitted to the Congress, the sponsors agreed to use the
bill as a vehicle to make other conforming, clarifying, and
technical amendments to the CFAAA.
Legislative History
S. 283 was introduced by Senator Bingaman (for himself and
Senator Domenici) on January 12, 2007.
During the 109th Congress, the Committee considered similar
legislation, S. 1830, introduced by Senator Domenici (for
himself and Senators Bingaman and Akaka), at the request of the
Administration. The Committee on Energy and Natural Resources
held a hearing on S. 1830 on October 25, 2005 (S. Hrg. 109-
291), and ordered the bill favorably reported, with amendments,
on March 15, 2006. S. Rept. 109-237. The Senate passed the bill
by unanimous consent, with amendments, on September 29, 2006.
No further action occurred prior to the sine die adjournment of
the 109th Congress.
At its business meeting on January 31, 2007, the Committee
ordered S. 283 to be favorably reported.
Committee Recommendation
The Committee on Energy and Natural Resources, in open
business session on January 31, 2007, by a voice vote of a
quorum present, recommends that the Senate pass S. 283.
Section-by-Section Analysis
Section 1 provides that this Act may be cited as the
``Compacts of Free Association Amendments Act of 2007''.
Section 2 amends section 101 of the Compact of Free
Association Amendments Act of 2003 (CFAAA) (Public Law 108-188)
to approve the two disaster assistance agreements negotiated
pursuant to section 105(f)(1)(A) of that Act and transmitted to
the Congress on August 19, 2004.
Section 3 deletes the interim disaster assistance
provisions and negotiating instructions set forth in section
105(f)(1)(A) of the CFAAA, which will be rendered moot upon
approval of the new agreements. The Administration more
recently sent additional language contained in clause (ii) to
clarify that funding to implement these agreements will be
``transferred'' from FEMA to OFDA.
Section 4 makes three clarifying amendments to section
105(f)(1)(B) of the CFAAA regarding the availability of certain
U.S. education programs. The first two paragraphs clarify that
students from the FSM and the RMI who are attending colleges in
the United States or its territories--and also in Palau, which
had been inadvertently omitted--shall continue to be eligible
to receive benefits through the end of their current course of
studies, up to four years, for programs that are otherwise
terminated by the CFAAA.
The third paragraph clarifies that the ``government,
institutions, and people'' of Palau shall continue to be
eligible, until the end of fiscal year 2009, for those
education programs for which they were eligible in fiscal year
2003. The existing language had generally stated that the
``Republic of Palau'' would remain eligible, instead of
specifying that the ``students, institutions, and government of
Palau'' would remain eligible.
Section 5 clarifies that section 105(f)(1)(C) of the CFAAA
is intended to continue eligibility for the programs and
services of the Legal Services Corporation for FSM and RMI
migrants who legally reside in the United States. Legal
Services Corporation eligibility was extended by the first
Compact Act in 1986 (Public Law 99-239), but in 1996, without
any further action by Congress, the Legal Services Corporation,
by rule, terminated the eligibility of FSM and RMI migrants.
Section 104(e) of the original Compact Act, and of the CFAAA,
states that it is ``not the intent of Congress to cause any
adverse consequences for an affected area,'' which are defined
as Hawaii, Guam, the CNMI, and American Samoa. The Legal
Services Corporation is one of those programs which had
assisted local communities, in both the ``affected areas'' and
in the mainland United States, in responding to the impacts and
needs of FSM and RMI citizens who were residing in U.S.
communities. This section would restore eligibility as it
existed from 1986 to 1996.
Section 6 makes technical corrections to the CFAAA.
Section 7 authorizes the FSM, Palau, and the RMI to
transmit videotaped programming. In remote and isolated
communities of the United States, such as isolated communities
in Alaska, Hawaii, and the Territories, Congress has provided
an exception from the copyright laws to allow for the
videotaping of television programming for rebroadcast in
outlying areas. Section 7 would restore this exception for
videotaping and rebroadcast of television programming for the
freely associated states, which enjoyed the privilege during
the Trust Territory period.
Section 8 allows the Government of Palau to deposit the
payment, otherwise payable to the United States under section
111 of Public Law 101-219, into a trust fund if the earnings of
the trust fund are expended solely for maintenance of the road
system constructed pursuant to section 212 of the Palau
Compact, and if this trust fund is established and operated
pursuant to an agreement entered into between the United States
and Palau.
Section 9 would clarify the tax-free status of the trust
funds established for the FSM and RMI under their respective
Compacts. Because these trust funds are to be incorporated in
the District of Columbia and it is not a State, the intended
tax-free status could otherwise be questioned.
Cost and Budgetary Considerations
The following estimate of the cost of this measure has been
provided by the Congressional Budget Office:
S. 283--Compacts of Free Association Amendments Act of 2007
S. 283 would amend the Compact of Free Association
Amendments Act of 2003. The bill would make several amendments
to the compact and would cancel a $3 million payment Palau owes
to the federal government if Palau deposits $3 million into a
trust fund controlled by the Republic of Palau. The earnings
from the trust fund would be used for maintenance of the road
system in Palau. Based on information from the Department of
the Interior, CBO estimates that this provision would result in
a loss of offsetting receipts (a credit against direct
spending) of $3 million in fiscal year 2007. Enacting the
legislation would not affect revenues.
S. 283 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by Peter H. Fontaine,
Deputy Assistant Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 283. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 283, as ordered reported.
Executive Communications
Because S. 283 is similar to legislation considered by the
Senate in the 109th Congress, the Committee did not request
Executive Agency views on S. 283.
Following is a copy of the August 19, 2004, letter from the
U.S. Department of State to the Chairman of the Committee
transmitting the text of legislation that was included as
section 2 of S. 283, as introduced. Copies of the two
agreements to be approved by this language are retained in the
Committee files.
United States Department of State,
Washington, DC, August 19, 2004.
Hon. Jeff Bingaman,
Committee on Energy and Natural Resources,
U.S. Senate.
Dear Senator Bingaman: In accordance with section
105(f)(1)(A)(iii) of the Compact of Free Association Amendments
Act of 2003 (P.L. 108-188), the Department of State has
completed negotiations and signed subsidiary agreements to the
amended Compacts of Free Association with the Republic of the
Marshall Islands (RMI) and the Federated States of Micronesia
(FSM) with regard to future United States provision of disaster
assistance.
Specifically, we have reached agreement with the RMI and
FSM on amendments to the Federal Programs and Services
Agreements necessary to address the continued extension of
disaster assistance and response services by the U.S. Agency
for International Development (USAID), Office of Foreign
Disaster Assistance (OFDA), and continued support from the
Department of Homeland Security's Federal Emergency Management
Agency (FEMA). Accordingly, I am pleased to transmit to the
Congress for consideration and enactment under section
105(f)(1)(A)(iii) of P.L. 108-188, the enclosed draft
legislation to grant the consent of Congress to:
(1) the Agreement to Amend Article X of the Federal
Programs and Services Agreement Between the Government
of the United States and the Government of the Republic
of the Marshall Islands Concluded Pursuant to Article
III of Title One, Article II of Title Two, (including
Section 222), and Section 231 of the Compact of Free
Association, as Amended; and
(2) the Agreement to Amend Article X of the Federal
Programs and Services Agreement Between the Government
of the United States and the Government of the
Federated States of Micronesia Concluded Pursuant to
Article III of Title One, Article II of Title Two,
(including Section 222), and Section 231 of the Compact
of Free Association, as Amended.
The text of the signed Agreements is also enclosed,
The Department of State appreciates Congress' expeditious
passage of the Compact of Free Association Amendments Act of
2003. The amended Compacts have entered into force with both
nations, and the Department is working with the Department of
the Interior, other executive branch agencies, and the
respective governments to ensure their successful
implementation.
The Office of Management and Budget advises that there is
no objection to the submission of this legislation from the
standpoint of the Administration's program.
Sincerely,
Paul V. Kelly,
Assistant Secretary, Legislative Affairs.
Enclosures.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1830, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
PUBLIC LAW 108-188 [H.J. RES. 63]--DEC. 17, 2003
COMPACT OF FREE ASSOCIATION AMENDMENTS ACT OF 2003
108 P.L. 188; 117 Stat. 2720; 2003 Enacted H.J. Res. 63; 108 Enacted
H.J. Res. 63
JOINT RESOLUTION
To approve the Compact of Free Association, as amended,
between the Government of the United States of America and the
Government of the Federated States of Micronesia, and the
Compact of Free Association, as amended, between the Government
of the United States of America and the Government of the
Republic of the Marshall Islands, and to appropriate funds to
carry out the amended Compacts.
* * * * * * *
TITLE I--APPROVAL OF U.S.-FSM COMPACT AND U.S. RMI COMPACT;
INTERPRETATION OF, AND U.S. POLICIES REGARDING, U.S.-FSM COMPACT AND
U.S.-RMI COMPACT; SUPPLEMENTAL PROVISIONS
SEC. 101. APPROVAL OF U.S.-FSM COMPACT OF FREE ASSOCIATION AND THE
U.S.-RMI COMPACT OF FREE ASSOCIATION; REFERENCES TO
SUBSIDIARY AGREEMENTS OR SEPARATE AGREEMENTS.
(a) Federated States of Micronesia.--The Compact of Free
Association, as amended with respect to the Federated States of
Micronesia and signed by the United States and the Government
of the Federated States of Micronesia and set forth in Title II
(section 201(a)) of this joint resolution, is hereby approved,
and Congress hereby consents to the subsidiary agreements and
amended subsidiary agreements listed in section 462 of the
U.S.-FSM Compact, including Article X of the Federal Programs
and Services Agreement Between the Government of the United
States and the Government of the Federated States of
Micronesia, as amended under the Agreement to Amend Article X
that was signed by those 2 Governments on June 30, 2004, which
shall serve as the authority to implement the provisions
thereof. Subject to the provisions of this joint resolution,
the President is authorized to agree, in accordance with
section 411 of the U.S.-FSM Compact, to an effective date for
and thereafter to implement such U.S.-FSM Compact.
(b) Republic of the Marshall Islands.--The Compact of Free
Association, as amended with respect to the Republic of the
Marshall Islands and signed by the United States and the
Government of the Republic of the Marshall Islands and set
forth in Title II (section 201(b)) of this joint resolution, is
hereby approved, and Congress hereby consents to the subsidiary
agreements and amended subsidiary agreements listed in section
462 of the U.S. RMI Compact, including Article X of the Federal
Programs and Services Agreement Between the Government of the
United States and the Government of the Republic of the
Marshall Islands, as amended under the Agreement to Amend
Article X that was signed by those 2 Governments on June 18,
2004, which shall serve as the authority to implement the
provisions thereof. Subject to the provisions of this joint
resolution, the President is authorized to agree, in accordance
with section 411 of the U.S.-RMI Compact, to an effective date
for and thereafter to implement such U.S.-RMI Compact.
* * * * * * *
SEC. 103. AGREEMENTS WITH AND OTHER PROVISIONS RELATED TO THE REPUBLIC
OF THE MARSHALL ISLANDS.
* * * * * * *
(c) Section 177 Agreement.--
(1) In the joint resolution of January 14, 1986
(Public Law 99-239) Congress provided that in
furtherance of the purposes of Article I of the
Subsidiary Agreement for Implementation of Section 177
of the Compact, the payment of the amount specified
therein shall be made by the United States under
Article I of the Agreement between the Government of
the United States and the Government of the Marshall
Islands for the Implementation of [section 177] Section
177 of the Compact (hereafter in this subsection
referred to as the ``Section 177 Agreement'') only
after the Government of the Marshall Islands has
notified the President of the United States as to which
investment management firm has been selected by such
Government to act as Fund Manager under Article I of
the Section 177 Agreement.
* * * * * * *
SEC. 104. INTERPRETATION OF AND UNITED STATES POLICY REGARDING U.S.-FSM
COMPACT AND U.S.-RMI COMPACT.
* * * * * * *
(b) Immigration and Passport Security.--
(1) Naturalized citizens.--The rights of a bona fide
naturalized citizen of the Federated States of
Micronesia or the Republic of the Marshall Islands to
enter the United States, to lawfully engage therein in
occupations, and to establish residence therein as a
nonimmigrant, to the extent such rights are provided
under section 141 of the U.S.-FSM Compact and the U.S.-
RMI Compact, shall not be deemed to extend to any such
naturalized citizen with respect to whom circumstances
associated with the acquisition of the status of a
naturalized citizen are such as to allow a reasonable
inference, on the part of appropriate officials of the
United States and subject to United States procedural
requirements, that such naturalized status was acquired
primarily in order to obtain such rights.
* * * * * * *
(e) Impact of the U.S.-FSM Compact and the U.S.-RMI Compact
on the State of Hawaii, Guam, the Commonwealth of the Northern
Mariana Islands and American Samoa; Related Authorization and
Continuing Appropriation.
(1) Statement of congressional intent.--In
Reauthorizing the U.S.-FSM Compact and the U.S.-RMI
Compact, it is not the intent of Congress to cause any
adverse consequences for an affected jurisdiction.
* * * * * * *
(8) Reporting requirement.--Not later than one year
after the date of enactment of this joint resolution,
and at one year intervals thereafter, the Governors of
Guam, the State of Hawaii, the Commonwealth of the
Northern Mariana Islands, and American Samoa may
provide to the Secretary of the Interior by February 1
of each year their comments with respect to the impacts
of the Compacts on their respective jurisdiction. The
Secretary of the Interior, upon receipt of any such
comments, shall report to the Congress not later than
May 1 of each year [to include] and include the
following:
(A) The Governor's comments on the impacts of
the Compacts as well as the Administration's
analysis of such impact.
(B) The Administration views on any
recommendations for corrective action to
eliminate those consequences as proposed by
such Governors.
(C) With regard to immigration, statistics
concerning the number of persons availing
themselves of the rights described in section
141(a) of the Compact during the year covered
by each report.
(D) With regard to trade, an analysis of the
impact on the economy of American Samoa
resulting from imports of canned tuna into the
United States from the Federated States of
Micronesia and the Republic of the Marshall
Islands.
(9) Reconciliation of unreimbursed impact expenses.--
(A) In general.--Notwithstanding any other
provision of law, the President, to address
previously accrued and unreimbursed impact
expenses, may, at the request of the Governor
of Guam or the Governor of the Commonwealth of
the Northern Mariana Islands, reduce, release,
or waive all or part of any amounts owed by the
Government of Guam or the Government of the
Commonwealth of the Northern Mariana Islands
(or either government's autonomous agencies or
instrumentalities), respectively, to any
department, agency, independent agency, office,
or instrumentality of the United States.
(B) Terms and conditions.--
(i) Substantiation of impact costs.--
Not later than 120 days after the date
of the enactment of this resolution,
the Governor of Guam and the Governor
of the Commonwealth of the Northern
Mariana Islands shall each submit to
the Secretary of the Interior a report,
prepared in consultation with an
independent accounting firm,
substantiating unreimbursed impact
expenses claimed for the period from
January 14, 1986, through September 30,
2003. Upon request of the Secretary of
the Interior, the Governor of Guam and
the Governor of the Commonwealth of the
Northern Mariana Islands shall submit
to the Secretary of the Interior copies
of all documents upon which the report
submitted by that Governor under this
clause was based.
(ii) Congressional notification.--The
President shall notify Congress of his
intent to exercise the authority
granted in subparagraph (A).
(iii) Congressional review and
comment.--Any reduction, release, or
waiver under this Act shall not take
effect until 60 days after the
President notifies Congress of his
intent to approve a request of the
Governor of Guam or the Governor of the
Commonwealth of the Northern Mariana
Islands. In exercising his authority
under this section and in determining
whether to give final approval to a
request, the President shall take into
consideration comments he may receive
after Congressional review.
(iv) Expiration.--The authority
granted in subparagraph (A) shall
expire on February 28, 2005.
(10) Authorization of appropriations for grants.--
There are hereby authorized to the Secretary of the
Interior for each of fiscal years 2004 through 2023
such sums as may be necessary for grants to the
governments of Guam, the State of Hawaii, the
Commonwealth of the Northern Mariana Islands, and
American Samoa, as a result of increased demands placed
on educational, social, or public safety services or
infrastructure [related to service] related to such
services due to the presence in Guam, Hawaii, the
Commonwealth of the Northern Mariana Islands, and
American Samoa of qualified nonimmigrants from the
Federated States of Micronesia, the Republic of the
Marshall Islands, and the Republic of Palau.
(j) Inflation Adjustment.--As of Fiscal Year 2015, if the
United States Gross Domestic Product Implicit Price Deflator
average for Fiscal Years 2009 through 2013 is greater than
United States Gross Domestic Product Implicit Price Deflator
average for Fiscal Years 2004 through 2008 (as reported in the
Survey of Current Business or subsequent publication and
compiled by the Department of the Interior), then section 217
of the U.S.-FSM Compact, paragraph 5 of Article II of the U.S.-
FSM Fiscal Procedures Agreement, section 218 of the U.S.-RMI
Compact, and paragraph 5 of Article II of the U.S.-RMI Fiscal
Procedures Agreement shall be construed as if ``the full''
appeared in place of ``two-thirds of the'' each place those
words appear. If an inflation adjustment is made under this
subsection, the base year for calculating the inflation
adjustment shall be fiscal year 2014.
* * * * * * *
SEC. 105. SUPPLEMENTAL PROVISIONS.
(a) Domestic Program Requirements.--Except as may otherwise
be provided in this joint resolution, all United States Federal
programs and services extended to or operated in the Federated
States of Micronesia or the Republic of the Marshall Islands
are and shall remain subject to all applicable criteria,
standards, reporting requirements, auditing procedures, and
other rules and regulations applicable to such programs when
operating in the United States (including its territories and
commonwealths).
(b) Relations With the Federated States of Micronesia and
the Republic of the Marshall Islands.--
(1) Appropriations made pursuant to Article I of
Title Two and subsection (a)(2) of section 221 of
article II of Title Two of the U.S.-FSM Compact and the
U.S.-RMI Compact shall be made to the Secretary of the
Interior, who shall have the authority necessary to
fulfill his responsibilities for monitoring and
managing the funds so appropriated consistent with the
U.S.-FSM Compact and the U.S.-RMI Compact, including
the agreements referred to in section 462(b)(4) of the
U.S.-FSM Compact and U.S.-RMI Compact (relating to
Fiscal Procedures) and the agreements referred to in
section 462(b)(5) of the U.S.FSM Compact and the U.S.-
RMI Compact (regarding the [Trust Fund] Trust Funds).
* * * * * * *
(f) Continuing Programs and Laws.--
(1) Federated states of micronesia and republic of
the marshall islands.--In addition to the programs and
services set forth in section 221 of the Compact, and
pursuant to section 222 of the Compact, the programs
and services of the following agencies shall be made
available to the Federated States of Micronesia and to
the Republic of the Marshall Islands:
[(A) Continuation of the programs and
services of the federal emergency management
agency.--Except as provided in clauses (ii) and
(iii), the programs and services of the
Department of Homeland Security, Federal
Emergency Management Agency shall continue to
be available to the Federated States of
Micronesia and the Republic of the Marshall
Islands to the same extent as such programs and
services available in fiscal year 2003.
[(i) Paragraph (a)(6) of section 221
of the U.S.-FSM Compact and paragraph
(a)(5) of the U.S.-RMI Compact shall
each be construed as though the
paragraph reads as follows: ``the
Department of Homeland Security, United
States Federal Emergency Management
Agency.''.
[(ii) Subsection (d) of section 211
of the U.S.-FSM Compact and subsection
(e) of section 211 of the U.S.-RMI
Compact shall each be construed as
though the subsection reads as follows:
``Not more than $200,000 (as adjusted
for inflation pursuant to section 217
of the U.S.-FSM Compact and section 218
of the U.S.-RMI Compact) shall be made
available by the Secretary of the
Interior to the Department of Homeland
Security, Federal Emergency Management
Agency to facilitate the activities of
the Federal Emergency Management Agency
in accordance with and to the extent
provided in the Federal Programs and
Services Agreement.''.
[(iii) The Secretary of State, in
consultation with the Department of
Homeland Security and the Federal
Emergency Management Agency, shall
immediately undertake negotiations with
the Government of the Federated States
of Micronesia and the Government of the
Republic of the Marshall Islands
regarding disaster assistance and shall
report to the appropriate committees of
Congress no later than June 30, 2004,
on the outcome of such negotiations,
including recommendations for changes
to law regarding disaster assistance
under the U.S.-FSM Compact and the
U.S.-RMI Compact, and including
subsidiary agreements as needed to
implement such changes to law. If an
agreement is not concluded, and
legislation enacted which reflects such
agreement, before the date which is
five years after the date of enactment
of this Joint Resolution, the following
provisions shall apply: ``Paragraph
(a)(6) of section 221 of the U.S.-FSM
Compact and paragraph (a)(5) of section
221 of the U.S.-RMI Compact shall each
be construed and applied as if each
provision reads as follows: ``The U.S.
Agency for International Development
shall be responsible for the provision
of emergency and disaster relief
assistance in accordance with its
statutory authorities, regulations and
policies. The Republic of the Marshall
Islands and the Federated States of
Micronesia may additionally request
that the President make an emergency or
major disaster declaration. If the
President declares an emergency or
major disaster, the Department of
Homeland Security (DHS), the Federal
Emergency Management Agency (FEMA) and
the U.S. Agency for International
Development shall jointly (a) assess
the damage caused by the emergency or
disaster and (b) prepare a
reconstruction plan including an
estimate of the total amount of Federal
resources that are needed for
reconstruction. Pursuant to an
interagency agreement, FEMA shall
transfer funds from the Disaster Relief
Fund in the amount of the estimate,
together with an amount to be
determined for administrative expenses,
to the U.S. Agency for International
Development, which shall carry out
reconstruction activities in the
Republic of the Marshall Islands and
the Federated States of Micronesia in
accordance with the reconstruction
plan. For purposes of Disaster Relief
Fund appropriations, the funding of the
activities to be carried out pursuant
to this paragraph shall be deemed to be
necessary expenses in carrying out the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5121 et seq.). ``DHS may provide to the
Republic of the Marshall Islands and
the Federated States of Micronesia
preparedness grants to the extent that
such assistance is available to the
States of the United States. Funding
for this assistance may be made
available from appropriations made to
DHS for preparedness activities.''.]
(A) Emergency and disaster assistance.--
(i) In general.--Subject to clause
(ii), section 221(a)(6) of the U.S.-FSM
Compact and section 221(a)(5) of the
U.S.-RMI Compact shall each be
construed and applied in accordance
with the 2 Agreements to Amend Article
X of the Federal Programs and Service
Agreements signed on June 30, 2004, and
on June 18, 2004, respectively.
(ii) Definition of will provide
funding.--In the second sentence of
paragraph 12 of each of the Agreements
described in clause (i), the term
``will provide funding'' means will
provide funding through a transfer of
funds using Standards Form 1151 or a
similar document or through an
interagency, reimbursable agreement.
(B) Treatment of additional programs.--
(i) Consultation.--The United States
appointees to the committees
established pursuant to section 213 of
the U.S.-FSM Compact and section 214 of
the U.S.-RMI Compact shall consult with
the Secretary of Education regarding
the objectives, use, and monitoring of
United States financial, program, and
technical assistance made available for
educational purposes.
(ii) Continuing programs.--The
Government of the United States--
(I) shall continue to make
available to the Federated
States of Micronesia and the
Republic of the Marshall
Islands for fiscal years 2004
through 2023, the services to
individuals eligible for such
services under the Individuals
with Disabilities Education Act
(20 U.S.C. 1400 et seq.) to the
extent that such services
continue to be available to
individuals in the United
States; and
(II) shall continue to make
available to eligible
institutions in the Federated
States of Micronesia and the
Republic of the Marshall
Islands, and to students
enrolled in such institutions,
and in institutions in the
United States [and its
territories], its territories,
and the Republic of Palau for
fiscal years 2004 through 2023,
grants under subpart 1 of part
A of title IV of the Higher
Education Act of 1965 (20
U.S.C. 1070a et seq.) to the
extent that such grants
continue to be available to
institutions and students in
the United States.
(iii) Supplemental education
grants.--In lieu of eligibility for
appropriations under part A of title I
of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311
et seq.), title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801
et seq.), other than subtitle C of that
Act (29 U.S.C. 2881 et seq.) (Job
Corps), title II of the Workforce
Investment Act of 1998 (20 U.S.C. 9201
et seq.; commonly known as the Adult
Education and Family Literacy Act),
title I of the Carl D. Perkins
Vocational and Technical Education Act
of 1998 (20 U.S.C. 2321 et seq.), the
Head Start Act (42 U.S.C. 9831 et
seq.), and subpart 3 of part A, and
part C, of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070b
et seq., 42 U.S.C. 2751 et seq.), there
are authorized to be appropriated to
the Secretary of Education to
supplement the education grants under
section 211(a)(1) of the U.S.-FMS
Compact and section 211(a)(1) of the
U.S.-RMI Compact, respectively, the
following amounts:
(I) $12,230,000 for the
Federated States of Micronesia
for fiscal year 2005 and an
equivalent amount, as adjusted
for inflation under section 217
of the U.S.-FSM Compact, for
each of fiscal years 2005
through 2023; and
(II) $6,100,000 for the
Republic of the Marshall
Islands for fiscal year 2005
and an equivalent amount, as
adjusted for inflation under
section 218 of the U.S.-RMI
Compact, for each of fiscal
years 2005 through 2023, except
that citizens of the Federated
States of Micronesia and the
Republic of the Marshall
Islands who attend an
institution of higher education
in the United States or its
territories, the Federated
States of Micronesia, [or the
Republic of the Marshall
Islands] the Republic of the
Marshall Islands, or the
Republic of Palau on the date
of enactment of this joint
resolution may continue to
receive assistance under such
subpart 3 of part A or part C,
for not more than 4 academic
years after such date to enable
such citizens to complete their
program of study.
(iv) Fiscal procedures.--
Appropriations made pursuant to clause
(iii) shall be used and monitored in
accordance with an agreement between
the Secretary of Education, the
Secretary of Labor, the Secretary of
Health and Human Services, and the
Secretary of the Interior, and in
accordance with the respective Fiscal
Procedures Agreements referred to in
section 462(b)(4) of the U.S.-FSM
Compact and section 462(b)(4) of the
U.S.-RMI Compact. The agreement between
the Secretary of Education, the
Secretary of Labor, the Secretary of
Health and Human Services, and the
Secretary of the Interior shall provide
for the transfer, not later than 60
days after the appropriations made
pursuant to clause (iii) become
available to the Secretary of
Education, the Secretary of Labor, and
the Secretary of Health and Human
Services, from the Secretary of
Education, the Secretary of Labor, and
the Secretary of Health and Human
Services, to the Secretary of the
Interior for disbursement.
(v) Formula education grants.--For
fiscal years 2005 through 2023, except
as provided in clause (ii) and the
exception provided under clause (iii),
the Governments of the Federated States
of Micronesia and the Republic of the
Marshall Islands shall not receive any
grant under any formula-grant program
administered by the Secretary of
Education or the Secretary of Labor,
nor any grant provided through the Head
Start Act (42 U.S.C. 9831 et seq.)
administered by the Secretary of Health
and Human Services.
(vi) Transition.--For fiscal year
2004, the Governments of the Federated
States of Micronesia and the Republic
of the Marshall Islands shall continue
to be eligible for appropriations and
to receive grants under the provisions
of law specified in clauses (ii) and
(iii).
(vii) Technical assistance.--The
Federated States of Micronesia and the
Republic of the Marshall Islands may
request technical assistance from the
Secretary of Education, the Secretary
of Health and Human Services, or the
Secretary of Labor the terms of which,
including reimbursement, shall be
negotiated with the participation of
the appropriate cabinet officer for
inclusion in the Federal Programs and
Services Agreement.
(viii) Continued eligibility for
competitive grants.--The Governments of
the Federated States of Micronesia and
the Republic of the Marshall Islands
shall continue to be eligible for
competitive grants administered by the
Secretary of Education, the Secretary
of Health and Human Services, and the
Secretary of Labor to the extent that
such grants continue to be available to
State and local governments in the
United States.
(ix) Applicability.--The [Republic]
government, institutions, and people of
Palau shall remain eligible for
appropriations and to receive grants
under the provisions of law specified
in clauses (ii) and (iii) until the end
of fiscal year [2007] 2009, to the
extent the [Republic] government,
institutions, and people of Palau [was]
were so eligible under such provisions
in fiscal year 2003.
(C) The Legal Services Corporation, which
shall also continue to be available to the
citizens of the Federated States of Micronesia,
the Republic of Palau, and the Republic of the
Marshall Islands who legally reside in the
United States (including territories and
possessions).
* * * * * * *
TITLE II--COMPACTS OF FREE ASSOCIATION WITH THE FEDERATED STATES OF
MICRONESIA AND THE REPUBLIC OF THE MARSHALL ISLANDS
SEC. 201. COMPACTS OF FREE ASSOCIATION, AS AMENDED BETWEEN THE
GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA
AND BETWEEN THE GOVERNMENT OF THE UNITED STATES OF
AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF THE
MARSHALL ISLANDS.
(a) Compact of Free Association, as Amended, Between the
Government of the United States of America and the Government
of the Federated States of Micronesia.--The Compact of Free
Association, as amended, between the Government of the United
States of America and the Government of the Federated States of
Micronesia is as follows:
PREAMBLE
THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF
THE FEDERATED STATES OF MICRONESIA
* * * * * * *
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Federated States of Micronesia,
and its agencies and officials, shall be immune from the
jurisdiction of the court of the United States, and the
Government of the United States, and its agencies and
officials, shall be immune from the jurisdiction of the
[courts] court of the Federated States of Micronesia.
(b) The Government of the United States accepts
responsibility for and shall pay:
(1) any unpaid money judgment rendered by the High
Court of the Trust Territory of the Pacific Islands
against the Government of the United States with regard
to any cause of action arising as a result of acts or
omissions of the Government of the Trust Territory of
the Pacific Islands or the Government of the United
States prior to November 3, 1986;
(2) any claim settled by the claimant and the
Government of the Trust Territory of the Pacific
Islands but not paid as of [the] November 3, 1986; and
* * * * * * *
Section 177
Section 177 of the Compact entered into force with respect
to the Federated States of Micronesia on November 3, 1986 as
follows:
``(a) The Government of the United States accepts the
responsibility for compensation owing to citizens of the
Marshall Islands, or the Federated States of Micronesia[, or
Palau] (or Palau) for loss or damage to property and person of
the citizens of the Marshall Islands, or the Federated States
of Micronesia, resulting from the nuclear testing program which
the Government of the United States conducted in the Northern
Marshall Islands between June 30, 1946, and August 18, 1958.
* * * * * * *
Section 179
(a) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over the Government of the
United States, or its instrumentalities.
(b) The courts of the Federated States of Micronesia shall
not exercise criminal jurisdiction over any person if the
Government of the United States provides notification to the
Government of the Federated States of Micronesia that such
person was acting on behalf of the Government of the United
States, for actions taken in furtherance of section 221 or 224
of this [amended Compact] Compact, as amended, or any other
provision of law authorizing financial, program, or service
assistance to the Federated States of Micronesia.
TITLE TWO--ECONOMIC RELATIONS
ARTICLE I
GRANT ASSISTANCE
Section 211--Sector Grants
(a) In order to assist the Government of the Federated
States of Micronesia in its efforts to promote the economic
advancement, budgetary self-reliance, and economic self-
sufficiency of its people, and in recognition of the special
relationship that exists between the Federated States of
Micronesia and the United States, the Government of the United
States shall provide assistance on a sector grant basis for a
period of twenty years in the amounts set forth in section 216,
commencing on the effective date of this Compact, as amended.
Such grants shall be used for assistance in the sectors of
education, health care, private sector development, the
environment, public sector capacity building, and public
infrastructure, or for other sectors as mutually agreed, with
priorities in the education and health care sectors. For each
year such sector grant assistance is made available, the
proposed division of this amount among these sectors shall be
certified to the Government of the United States by the
Government of the Federated States of Micronesia and shall be
subject to the concurrence of the Government of the United
States. In such case, the Government of the United States shall
disburse the agreed upon amounts and monitor the use of such
sector grants in accordance with the provisions of this Article
and the Agreement Concerning Procedures for the Implementation
of United States Economic Assistance Provided in the [Compact,
as Amended, of Free Association] Compact of Free Association,
as amended, Between the Government of the United States of
America and the Government of the Federated States of
Micronesia (``Fiscal Procedures Agreement'') which shall come
into effect simultaneously with this Compact, as amended. The
provision of any United States assistance under the Compact, as
amended, the Fiscal Procedures Agreement, the [Trust Fund
Agreement] Agreement Between the Government of the United
States of America and the Government of the Federated States of
Micronesia Implementing Section 215 and Section 216 of the
Compact, as Amended, Regarding a Trust Fund (Trust Fund
Agreement), or any other subsidiary agreement to the Compact,
as amended, shall constitute ``a particular distribution . . .
required by the terms or special nature of the assistance'' for
purposes of Article XII, section l(b) of the Constitution of
the Federated States of Micronesia.
* * * * * * *
(b) Humanitarian Assistance.--Federated States of
Micronesia Program. In recognition of the special development
needs of the Federated States of Micronesia, the Government of
the United States shall make available to the [Government of
the] Federated States of Micronesia, on its request and to be
deducted from the grant amount made available under subsection
(a) of this section, a Humanitarian Assistance--Federated
States of Micronesia (``HAFSM'') Program with emphasis on
health, education, and infrastructure (including
transportation), projects. The terms and conditions of the
HAFSM shall be set forth in the Agreement Regarding the
Military Use and Operating Rights of the Government of the
United States in the Government of the Federated States of
Micronesia Concluded Pursuant to [Sections 321 and 323 of the
Compact of Free Association, as Amended] Sections 211(b), 321,
and 323 of the Compact of Free Association, as amended which
shall come into effect simultaneously with the amendments to
this Compact.
(c) Development Plan.--The Government of the Federated
States of Micronesia shall prepare and maintain an official
overall development plan. The plan shall be strategic in
nature, shall be continuously reviewed and updated through the
annual budget process, and shall make projections on a multi-
year rolling basis. Each of the sectors named in subsection (a)
of this section, or other sectors as mutually agreed, shall be
accorded specific treatment in the plan. Insofar as grants
funds are involved, the plan shall be subject to the
concurrence of the Government of the United States.
(d) Disaster Assistance Emergency Fund.--An amount of two
hundred thousand dollars ($200,000) shall be provided annually,
with an equal contribution from the Government of the Federated
States of Micronesia, as a contribution to a ``Disaster
Assistance Emergency Fund (DAEF).'' Any funds from the DAEF may
be used only for assistance and rehabilitation resulting from
disasters and emergencies. The funds will be accessed upon
declaration by the Government of the Federated States of
Micronesia, with the concurrence of the United States Chief of
Mission to the Federated States of Micronesia. The
Administration of the DAEF shall be governed by the Fiscal
Procedures Agreement and the Federal Programs and Services
Agreement referred to in section 231.
* * * * * * *
Section 215--Trust Fund
(a) The United States shall contribute annually for twenty
years from the effective date of this Compact, as amended, in
the amounts set forth in section 216 into a Trust Fund
established in accordance with the Agreement Between the
Government of the United States of America and the Government
of the Federated States of Micronesia Implementing Section 215
and Section 216 of the Compact, as Amended, Regarding a Trust
Fund (``Trust Fund Agreement''). Upon termination of the annual
financial assistance under section 211, the proceeds of the
fund shall thereafter be used for the purpose described in
section 211 or as otherwise mutually agreed.
(b) The United States contribution into the Trust Fund
described in [subsection (a)] subsection (a) of this section is
conditioned on the Government of the Federated States of
Micronesia contributing to the Trust Fund at least $30 million,
prior to September 30, 2004. Any funds received by the
Federated States of Micronesia under section 111(d) of Public
Law 99-239 (January 14, 1986), or successor provisions, would
be contributed to the Trust Fund as a Federated States of
Micronesia contribution.
* * * * * * *
Section 221
(a) Section.--The Government of the United States shall
make available to the Federated States of Micronesia, in
accordance with and to the extent provided in the Federal
Programs and Services Agreement referred to in section 231, the
services and related programs of:
(1) the United States Weather Service;
(2) the United States Postal Service;
(3) the United States Federal Aviation
Administration;
(4) the United States Department of Transportation;
(5) the Federal Deposit Insurance Corporation (for
the benefit only of the Bank of the Federated States of
Micronesia); and
(6) the Department of Homeland Security (Federal
Emergency Management Agency), and the United States
Agency for International Development, Office of Foreign
Disaster Assistance.
Upon the effective date of this Compact, as amended, the
United States Departments and Agencies named or having
responsibility to provide these services and related programs
shall have the authority to implement the relevant provisions
of the Federal Programs and Services Agreement referred to in
section 231.
(b) Programs.--
(1) With the exception of the services and programs
covered by subsection (a) of this section, and unless
the Congress of the United States provides otherwise,
the Government of the United States shall make
available to the Federated States of Micronesia the
services and programs that were available to the
Federated States of Micronesia on the effective date of
this Compact, as amended, to the extent that such
services and programs continue to be available to State
and local governments of the United States. As set
forth in the Fiscal ProceduresAgreement, funds provided
under subsection (a) of section 211 will be considered to be local
revenues of the Government of the Federated States of Micronesia when
used as the local share required to obtain Federal programs and
services.
(2) Unless provided otherwise by U.S. law, the
services and programs described in paragraph (1) of
this subsection shall be extended in accordance with
the terms of the Federal Programs and Services
Agreement referred to in section 231.
(c) The Government of the United States shall have and
exercise such authority as is necessary to carry out its
responsibilities under this Title and the separate [agreements]
agreement referred to in amended section 231, including the
authority to monitor and administer all service and program
assistance provided by the United States to the Federated
States of Micronesia. The Federal Programs and Services
Agreement referred to in amended section 231 shall also set
forth the extent to which services and programs shall be
provided to the Federated States of Micronesia.
(d) Except as provided elsewhere in this Compact, as
amended, under any separate agreement entered into under this
Compact, as amended, or otherwise under U.S. law, all Federal
domestic programs extended to or operating in the Federated
States of Micronesia shall be subject to all applicable
criteria, standards, reporting requirements, auditing
procedures, and other rules and regulations applicable to such
programs and services when operating in the United States.
(e) The Government of the United States shall make
available to the Federated States of Micronesia alternate
energy development projects, studies, and conservation measures
to the extent provided for the Freely Associated States in the
laws of the United States.
Section 222
The Government of the United States and the Government of
the Federated States of Micronesia may agree from time to time
to extend to the Federated States of Micronesia additional
United States grant assistance, services and programs, as
provided under the laws of the United States. Unless
inconsistent with such laws, or otherwise specifically
precluded by the Government of the United States at the time
such additional grant assistance, services, or programs are
extended, the Federal Programs and Services Agreement referred
to in section 231 shall apply to any such assistance, services
or programs.
* * * * * * *
Section 232
The Government of the United States, in consultation with
the Government of the Federated States of Micronesia, shall
determine and implement procedures for the periodic audit of
all grants and other assistance made under Article I of this
Title and of all funds expended for the services and programs
provided under Article II of this Title. Further, in accordance
with the Fiscal Procedures Agreement described in subsection
(a) of section 211, the Comptroller General of the United
States shall have such powers and authorities as described in
[sections 102(c) and 110(c) of Public Law 99-239, 99 Stat.
1777-78, and 99 Stat. 1799 (January 14, 1986)] section 102(b)
of Public Law 108-188, 117 Stat. 2726, December 17, 2003.
* * * * * * *
Section 252
The Government of the Federated States of Micronesia may,
with respect to United States persons, tax income derived from
sources within its respective jurisdiction, property situated
therein, including transfers of such property by gift or at
death, and products consumed therein, in such manner as the
Government of the Federated States of Micronesia deems
appropriate. The determination of the source of any income, or
the situs of any property, shall for purposes of this Compact,
as amended, be made according to the United States Internal
Revenue Code.
* * * * * * *
Section 341
Any person entitled to the privileges set forth in [Section
141] section 141 (with the exception of any person described in
section 141(a)(5) who is not a citizen of the Federated States
of Micronesia) shall be eligible to volunteer for service in
the Armed Forces of the United States, but shall not be subject
to involuntary induction into military service of the United
States as long as such person has resided in the United States
for a period of less than one year, provided that no time shall
count towards this one year while a person admitted to the
United States under the Compact, or the Compact, as amended, is
engaged in full-time study in the United States. Any person
described in section 141(a)(5) who is not a citizen of the
Federated States of Micronesia shall be subject to United
States laws relating to selective service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the Federated
States of Micronesia, as may be nominated by the Government of
the Federated States of Micronesia, in each of:
(a) The United States Coast Guard Academy pursuant to [14
U.S.C. 195] section 195 of Title 14, United States Code.
(b) The United States Merchant Marine Academy pursuant to
[46 U.S.C. 1295(b)(6)] section 1303(b)(6) of the Merchant
Marine Act, 1936 (46 U.S.C. 1295b(b)(6)), provided that the
provisions of [46 U.S.C. 1295b(b)(6)(C)] section 1303(b)(6)(C)
of that Act shall not apply to the enrollment of students
pursuant to section 342(b) of this Compact, as amended.
* * * * * * *
Section 354
(a) The Government of the United States and the Government
of the Federated States of Micronesia are jointly committed to
continue their security and defense relations, as set forth in
this Title. Accordingly, it is the intention of the two
countries that the provisions of this Title shall remain
binding as long as this Compact, as amended, remains in effect,
and thereafter as mutually agreed,unless earlier terminated by
mutual agreement pursuant to section 441, or amended pursuant to
Article III of Title Four. If at any time the Government of the United
States, or the Government of the Federated States of Micronesia, acting
unilaterally, terminates this Title, such unilateral termination shall
be considered to be termination of the entire Compact, in which case
the provisions of [section 442 and 452] sections 442 and 452 (in the
case of termination by the Government of the United States) or sections
443 and 453 (in the case of termination by the Government of the
Federated States of Micronesia), with the exception of paragraph (3) of
subsection (a) of section 452 or paragraph (3) of subsection (a) of
section 453, as the case may be, shall apply.
* * * * * * *
Section 461
For the purpose of this Compact, as amended, only, and
without prejudice to the views of the Government of the United
States or the Government of the Federated States of Micronesia
as to the nature and extent of the jurisdiction of either of
them under international law, the following terms shall have
the following meanings:
(a) ``Trust Territory of the Pacific Islands'' means the
area established in the Trusteeship Agreement consisting of the
former administrative districts of Kosrae, Yap, Ponape, the
Marshall Islands and Truk as described in Title One, Trust
Territory Code, section 1, in force on January 1, 1979. This
term does not include the area of Palau or the Northern Mariana
Islands.
* * * * * * *
(h) The following terms shall be defined consistent with
the 1998 Edition of the Radio Regulations of the International
[Telecommunications] Telecommunication Union as follows:
* * * * * * *
Section 462
(b) The Government of the United States and the Government
of the Federated States of Micronesia shall conclude prior to
the date of submission of this Compact, as amended, to the
legislatures of the two countries, the following related
agreements which shall come into effect on the effective date
of this Compact, as amended, and shall survive in accordance
with their terms, as follows:
* * * * * * *
(4) Agreement concerning Procedures for the
Implementation of United States Economic Assistance
Provided in the Compact of Free Association, as
Amended, [of Free Association] Between the Government
of the United States of America and the Government of
the Federated States of Micronesia;
* * * * * * *
Section 463
(a) Except as set forth in subsection (b) of this section,
any reference in this Compact, as amended, to a provision of
the United States Code or the Statutes at Large of the United
States constitutes the incorporation of the language of such
provision into this Compact, as amended, as such provision was
in force on the effective date of this Compact, as amended.
(b) Any reference in [Articles IV] Article IV and Article
VI of Title One and Sections 174, 175, 178 and 342 to a
provision of the United States Code or the Statutes at Large of
the United States or to the Privacy Act, the Freedom of
Information Act, the Administrative Procedure Act or the
Immigration and Nationality Act constitutes the incorporation
of the language of such provision into this Compact, as
amended, as such provision was in force on the effective date
of this Compact, as amended, or as it may be amended thereafter
on a non-discriminatory basis according to the constitutional
processes of the United States.
* * * * * * *
(b) Compact of Free Association, as Amended, Between the
Government of the United States of America and the Government
of the Republic of the Marshall Islands.--The Compact of Free
Association, as amended, between the Government of the United
States of America and the Government of the Republic of the
Marshall Islands is as follows:
PREAMBLE
The Government of the United States of America and the Government of
the Republic of the Marshall Islands
* * * * * * *
Section 174
Except as otherwise provided in this Compact, as amended,
and its related agreements:
(a) The Government of the Republic of the Marshall Islands,
and its agencies and officials, shall be immune from the
jurisdiction of the [court] courts of the United States, and
the Government of the United States, and its agencies and
officials, shall be immune from the jurisdiction of the courts
of the Republic of the Marshall Islands.
* * * * * * *
Section 177
Section 177 of the Compact entered into force with respect
to the Marshall Islands on October 21, 1986 as follows: ``(a)
The Government of the United States accepts the responsibility
for compensation owing to citizens of the Marshall Islands, or
the Federated States of Mirconesia[,] (or Palau) for loss or
damage to property and person of the citizens of the Marshall
Islands, or the Federated States of Micronesia, resulting from
the nuclear testing program which the Government of the United
States conducted in the Northern Marshall Islands between June
30, 1946, and August 18, 1958.
* * * * * * *
Section 179
(a) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over the Government of
the United States, or its instrumentalities.
(b) The courts of the Republic of the Marshall Islands
shall not exercise criminal jurisdiction over any person if the
Government of the United States provides notification to the
Government of the Republic of the Marshall Islands that such
person was acting on behalf of the Government of the United
States, for actions taken in furtherance of section 221 or 224
of this [amended Compact,] Compact, as amended, or any other
provision of law authorizing financial, program, or service
assistance to the Republic of the Marshall Islands.
TITLE TWO--ECONOMIC RELATIONS
ARTICLE I
GRANT ASSISTANCE
Section 211--Annual Grant Assistance
(a) In order to assist the Government of the Republic of
the Marshall Islands in its efforts to promote the economic
advancement and budgetary self-reliance of its people, and in
recognition of the special relationship that exists between the
Republic of the Marshall Islands and the United States, the
Government of the United States shall provide assistance on a
grant basis for a period of twenty years in the amounts set
forth in section 217, commencing on the effective date of this
Compact, as amended. Such grants shall be used for assistance
in education, health care, the environment, public sector
capacity building, and private sector development, or for other
areas as mutually agreed, with priorities in the education and
health care sectors. Consistent with the medium-term budget and
investment framework described in subsection (f) of this
section, the proposed division of this amount among the
identified areas shall require the concurrence of both the
Government of the United States and the Government of the
Republic of the Marshall Islands, through the Joint Economic
Management and Financial Accountability Committee described in
section 214. The Government of the United States shall disburse
the grant assistance and monitor the use of such grant
assistance in accordance with the provisions of this Article
and an Agreement Concerning Procedures for the Implementation
of United States Economic Assistance Provided in the [Compact,
as Amended, of Free Association] Compact of Free Association,
as amended, Between the Government of the United States of
America and the Government of the Republic of the Marshall
Islands (``Fiscal Procedures Agreement'') which shall come into
effect simultaneously with this, Compact, as amended.
(b) Kwajalein Atoll.--
(1) Of the total grant assistance made available
under subsection (a) of this section, the amount
specified herein shall be allocated annually from
fiscal year 2004 through fiscal year 2023 (and
thereafter in accordance with the [Agreement Between
the Government of the United States and the Government
of the Republic of the Marshall Islands Regarding
Military Use and Operating Rights] Agreement Regarding
the Military Use and Operating Rights of the Government
of the United States in the Republic of the Marshall
Islands concluded Pursuant to Sections 321 and 323 of
the Compact of Free Association, as Amended (Agreement
Between the Government of the United States and the
Government of the Republic of the Marshall Islands
Regarding Military Use and Operating Rights) to advance
the objectives and specific priorities set forth in
subsections (a) and (d) of this section and the Fiscal
Procedures Agreement, to address the special needs of
the community at Ebeye, Kwajalein Atoll and other
Marshallese communities within Kwajalein Atoll. This
United States grant assistance shall be made available,
in accordance with the medium-term budget and
investment framework described in subsection (f) of
this section, to support and improve the infrastructure
and delivery of services and develop the human and
material resources necessary for the Republic of the
Marshall Islands to carry out its responsibility to
maintain such infrastructure and deliver such services.
The amount of this assistance shall be $3,100,000, with
an inflation adjustment as provided in section 218,
from fiscal year 2004 through fiscal year 2013 and the
fiscal year 2013 level of funding, with an inflation
adjustment as provided in section 218, will be
increased by $2 million for fiscal year 2014. The
fiscal year 2014 level of funding, with an inflation
adjustment as provided in section 218, will be
madeavailable from fiscal year 2015 through fiscal year 2023 (and
thereafter as noted above).
* * * * * * *
(e) Disaster Assistance Emergency Fund.--Of the total grant
assistance made available under subsection (a) of this section,
an amount of two hundred thousand dollars ($200,000) shall be
provided annually, with an equal contribution from the
Government of the Republic of the Marshall Islands, as a
contribution to a Disaster Assistance Emergency Fund
(``DAEF''). Any funds from the DAEF may be used only for
assistance and rehabilitation resulting from disasters and
emergencies. The funds will be accessed upon declaration of a
State of Emergency by the Government of the Republic of the
Marshall Islands, with the concurrence of the United States
Chief of Mission to the Republic of the Marshall Islands.
Administration of the DAEF shall be governed by the Fiscal
Procedures Agreement and the Federal Programs and Services
Agreement referred to in section 231.
* * * * * * *
Section 221
(a) Services.--The Government of the United States shall
make available to the Republic of the Marshall Islands, in
accordance with and to the extent provided in the Federal
Programs and Services Agreement referred to in [Section 231]
section 231, the services and related programs of:
(1) The United States Weather Service;
(2) The United States Postal Service;
(3) The United States Federal Aviation
Administration;
(4) The United States Department of Transportation;
and
(5) The Department of Homeland Security (Federal
Emergency Management Agency), and the United States
Agency for International Development, Office of Foreign
Disaster Assistance.
Upon the effective date of this Compact, as amended, the
United States Departments and Agencies named or having
responsibility to provide these services and related programs
shall have the authority to implement the relevant provisions
of the Federal Programs and Services Agreement referred to in
section 231.
* * * * * * *
Section 232
The Government of the United States, in consultation with
the Government of the Republic of the Marshall Islands, shall
determine and implement procedures for the periodic audit of
all grants and other assistance made under Article I of this
Title and of all funds expended for the services and programs
provided under Article II of this Title. Further, in accordance
with the Fiscal Procedures Agreement described in subsection
(a) of section 211, the Comptroller General of the United
States shall have such powers and authorities as described in
[sections 103(m) and 110(c) of Public Law 99-239, 99 State.
1777-78, and 99 Stat. 1799 (January 14, 1986)] section 103(k)
of Public Law 108-188, 117 Stat. 2734, December 17, 2003.
* * * * * * *
Section 341
Any person entitled to the privileges set forth in [Section
141] section 141 (with the exception of any person described in
section 141(a)(5) who is not a citizen of the Republic of the
Marshall Islands) shall be eligible to volunteer for service in
the Armed Forces of the United States, but shall not be subject
to involuntary induction into military service of the United
States as long as such person has resided in the United States
for a period of less than one year, provided that no time shall
count towards this one year while a person admitted to the
United States under the Compact, or the Compact, as amended, is
engaged in full-time study in the United States. Any person
described in section 141(a)(5) who is not a citizen of the
Republic of the Marshall Islands shall be subject to United
States laws relating to selective service.
Section 342
The Government of the United States shall have enrolled, at
any one time, at least one qualified student from the Republic
of the Marshall Islands, as may be nominated by the Government
of the Republic of the Marshall Islands, in each of:
(a) The United States Coast Guard Academy pursuant to [14
U.S.C. 195] section 195 of title 14, United States Code.
(b) The United States Merchant Marine Academy pursuant to
[46 U.S.C. 1295(b)(6)] section 1303(b)(6) of the Merchant
Marine Act of 1936 (46 U.S.C. 1295b(b)(6)), provided that the
provisions of [46 U.S.C. 1295b(b)(6)(C)] section 1303(b)(6)(C)
of that Act shall not apply to the enrollment of students
pursuant to section 342(b) of this Compact, as amended.
* * * * * * *
Section 354
(a) The Government of the United States and the Government
of the Republic of the Marshall Islands are jointly committed
to continue their security and defense relations, as set forth
in this Title. Accordingly, it is the intention of the two
countries that the provisions of this Title shall remain
binding as long as this Compact, as amended, remains in effect,
and thereafter as mutually agreed, unless earlier terminated by
mutual agreement pursuant to section 441, or amended pursuant
to Article III of Title Four. If at any time the Government of
the United States, or the Government of the Republic of the
Marshall Islands, acting unilaterally, terminates this Title,
such unilateral termination shall be considered to be
termination of the entire Compact, as amended, in which case
the provisions of [section 442 and 452] sections 442 and 452
(in the case of termination by the Government of the United
States) or sections 443 and 453 (in the case of termination by
the Government of the Republic of the Marshall Islands), with
the exceptionof paragraph (3) of subsection (a) of section 452
or paragraph (3) of subsection (a) of section 453, as the case may be,
shall apply.
* * * * * * *
Section 443
This Compact, as amended, shall be terminated by the
Government of the Republic of the Marshall Islands, pursuant to
its constitutional processes, subject to section 453 if the
people represented by that Government vote in a plebiscite to
terminate the Compact, as amended. The Government of the
Republic of the Marshall Islands shall notify the Government of
the United States of its intention to call such a plebiscite,
which shall take place not earlier than three months after
delivery of such notice. The plebiscite shall be administered
by the Government of the Republic of the Marshall Islands in
accordance with its constitutional and legislative processes,
but the Government of the United States may send its own
observers and invite observers from a mutually agreed party. If
a majority of the valid ballots cast in the plebiscite favors
termination, the Government of the Republic of the Marshall
Islands shall, upon certification of the results of the
plebiscite, give notice of termination to the Government of the
United States, such termination to be effective on the date
specified in such notice but not earlier than three months
[following the date of delivery of such notice. The time
specified in the notice of termination may be extended.
* * * * * * *
Section 461
For the purpose of this Compact, as amended, only, and
without prejudice to the views of the Government of the United
States or the Government of the Republic of the Marshall
Islands as to the nature and extent of the jurisdiction of
either of them under international law, the following terms
shall have the following meanings:
* * * * * * *
(h) The following terms shall be defined consistent with
the [1978] 1998 Edition of the Radio Regulations of the
International [Telecommunications] Telecommunication Union as
follows:
* * * * * * *
Section 463
(a) Except as set forth in subsection (b) of this section,
any reference in this Compact, as amended, to a provision of
the United States Code or the Statutes at Large of the United
States constitutes the incorporation of the language of such
provision into this Compact, as amended, as such provision was
in force on the effective date of this Compact, as amended.
(b) Any reference in [Article] Articles IV and VI of Title
One, and Sections 174, 175, 178 and 342 to a provision of the
United States Code or the Statutes at Large of the United
States or to the Privacy Act, the Freedom of Information Act,
the Administrative Procedure Act or the Immigration and
Nationality Act constitutes the incorporation of the language
of such provision into this Compact, as amended, as such
provision was in force on the effective date of this Compact,
as amended, or as it may be amended thereafter on a non-
discriminatory basis according to the constitutional processes
of the United States.
* * * * * * *
<all>