To amend the Organic Act of Guam to authorize the Secretary of the Interior to reduce, release, or waive amounts owed by the Government of Guam to the United States to offset unreimbursed Compact impact expenses.

June 19, 2003

Ms. BORDALLO (for herself, Mr. GALLEGLY, Mr. RAHALL, Mr. FALEOMAVAEGA, Mr. REHBERG, Mr. ABERCROMBIE, and Mr. CASE) introduced the following bill; which was referred to the Committee on Resources

To amend the Organic Act of Guam to authorize the Secretary of the Interior to reduce, release, or waive amounts owed by the Government of Guam to the United States to offset unreimbursed Compact impact expenses.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Compact Impact Reconciliation Act'.

SEC. 2. COMPACT IMPACT RECONCILIATION.

(a) FINDINGS- Congress finds the following:

(1) In enacting the Compact of Free Association Act of 1985 (Public Law 99-239), Congress authorized unrestricted migration from the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau to the United States. Public Law 99-239 stated that if any adverse consequences to Guam resulted from implementation of the Compacts of Free Association, the Congress would act sympathetically and expeditiously to redress those adverse consequences.

(2) The General Accounting Office has reported that such migration permitted under the Compacts of Free Association has had a significant impact on Guam.

(3) By placing demands on local government for health, educational, and other social services, migration under the Compacts of Free Association has adversely affected the budgetary resources of the Government of Guam.

(4) Insufficient sums have been appropriated to cover the costs incurred by the Government of Guam resulting from increased demands placed on health, educational, and other social services by citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

(5) The Government of Guam has provided health, educational, and other social services in good faith with the expectation that such incurred costs would be reimbursed by the United States.

(6) Guam has experienced a severe economic crisis in recent years which has been exacerbated by expenses incurred related to Compact migration without adequate reimbursement from the United States.

(7) The Government of Guam has accrued significant obligations to the United States Government, including but not limited to--

(A) $9,000,000 owed by the Guam Waterworks Authority to the Department of the Navy for water consumption;

(B) $3,000,000 owed by the Guam Community College to the Department of Education for construction of a student housing facility;

(C) $40,000,000 owed by the Government of Guam in local matching funds to the Department of Homeland Security for Typhoon Chata'an (FEMA-1426-DR) and Supertyphoon Pongsona (FEMA-1446-DR) disaster assistance; and

(D) $105,000,000 owed by the Guam Telephone Authority to the Department of Agriculture for telephone infrastructure improvements.

(8) Congress has the authority to reconcile the amounts that have not been appropriated to Guam for Compact impact assistance with obligations owed by the Government of Guam to the United States.

(9) Reconciliation is in the national interest and would promote good will in the future renewal of the Compacts of Free Association and the economic recovery of Guam.

(b) IN GENERAL- The Organic Act of Guam (48 U.S.C. 1421 et seq.) is amended by adding at the end the following new section:

`SEC. 36. The Secretary of the Interior may reduce, release, or waive all or part of any amounts owed by the Government of Guam (or its autonomous agencies or instrumentalities) to any department, agency, independent agency, office, or instrumentality of the United States.'.

END