[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1521 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 1521
To establish the Commonwealth of Guam, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 29, 1993
Mr. Underwood (for himself, Mr. Montgomery, Mr. Gonzalez, Mr. LaFalce,
Mr. Bilbray, Mr. Darden, Mr. Frank of Massachusetts, Mr. Romero-
Barcelo, Mr. Young of Alaska, Mr. Barcia, Mr. Clay, Mr. Gingrich, Mr.
Livingston, Mr. Gene Green of Texas, Mr. Holden, Mr. McHale, Mrs. Meek,
Mr. Pastor, Mr. de Lugo, Mr. Rush, Mr. Rahall, Mrs. Unsoeld, Mr.
Becerra, Mr. Ackerman, Mr. Faleomavaega, Ms. Roybal-Allard, Mr.
Serrano, Mr. Torres, Mrs. Vucanovich, Mr. Burton of Indiana, Mr.
Deutsch, Mr. Bonior, Mr. Hinchey, Ms. Norton, Mr. Paxon, Mr. Inhofe,
Mr. de la Garza, Mr. Kreidler, Mr. Hastings, Mr. Wheat, Mr.
Abercrombie, Mr. Tucker, Mr. Gallegly, Mr. Martinez, Mr. Kennedy, Mr.
Gutierrez, Mr. Rangel, Mr. Mineta, Mr. Henry, and Mr. Lehman)
introduced the following bill; which was referred jointly to the
Committees on Natural Resources and Ways and Means
_______________________________________________________________________
A BILL
To establish the Commonwealth of Guam, and for other purposes.
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 ``Guam Commonwealth Act''.
SEC. 2. PREAMBLE.
(a) In recognition of the long-cherished aspiration of the people
of Guam to direct the course of their own destiny, and with the belief
that mutual respect, understanding, and compromise among people form a
more perfect Union, the people of the United States of America,
nurtured in the ideals of liberty and democracy, conscious of their
obligations under the Treaty of Paris of 1899 and the Charter of the
United Nations, do hereby embrace the establishment of the Commonwealth
of Guam, ever mindful that the right of self-determination and the
heritage of the Chamorro people of Guam shall be protected.
(b) This Act reflects the will of the people of Guam to attain a
greater measure of self-government in concert with the United States of
America, and reaffirms the principle that governments derive their just
powers only from the consent of the governed.
(c) To this end, the Senate and House of Representatives of the
United States of America in Congress assembled, now adopt this Act.
TITLE I--POLITICAL RELATIONSHIP
SEC. 101. CREATION OF THE COMMONWEALTH AND FULL SELF-GOVERNMENT.
(a) The Island of Guam, and its adjacent islands and waters shall
upon the enactment of this Act become a self-governing Commonwealth
known as the ``Commonwealth of Guam''. This Act, the provisions of the
United States Constitution, treaties, and laws of the United States
applicable to Guam, and the Constitution of Guam shall be the supreme
law of the Commonwealth.
(b) The people of Guam shall have the right of full self-
government, which shall extend to all rightful subjects of government
not inconsistent with this Act and the laws of the United States
applicable to Guam, and shall govern themselves in accordance with this
Act through a Constitution of their own adoption. Such Constitution
shall--
(1) recognize, and be consistent with, the sovereignty of
the United States over Guam, and the supremacy of the
provisions of the Constitution, treaties, and laws of the
United States applicable to Guam;
(2) provide for a republican form of government;
(3) provide for three branches of government; and
(4) contain a bill of rights.
(c) The Government of the Commonwealth shall have the power to sue
in its own name, and, with the consent of the Legislature, may be sued
upon any contract entered into with respect to, or any tort committed
incident to, the exercise by the Government of the Commonwealth of Guam
or any of its lawful powers.
(d) The Government of the Commonwealth of Guam shall have the power
to establish, maintain, and operate a public educational system to the
same extent as the several States.
SEC. 102. SELF-DETERMINATION AND UNITED STATES CITIZENSHIP RIGHTS.
(a) The Congress recognizes the inalienable right of self-
determination of the indigenous Chamorro people of Guam, defined as all
those born on Guam before August 1, 1950, and their descendants. The
exercise of such right of self-determination shall be provided for in a
Constitution of the Commonwealth of Guam.
(b) The Government of Guam shall ensure that, notwithstanding the
provisions of the preceding paragraph, nothing herein shall be
interpreted as depriving any qualified resident of Guam of the right to
participate as a voter in any referendum or plebiscite held under the
ratification procedure for this Act set forth in section 1204 hereof.
(c) The United States Government shall, by means of additional
federally funded programs, and the Commonwealth of Guam may promote--
(1) the maintenance and preservation of the Chamorro
language, culture, and traditions;
(2) the enhancement of economic, social, and educational
opportunities for Chamorros; and
(3) training of Chamorros for employment as professionals,
skilled workers, and leaders in business and industry.
(d) The establishment of such additional programs shall not affect
the continued eligibility for the benefits of existing programs of
members of all minority groups presently qualifying for such programs
under current law.
(e) Nothing in this Act or in the Constitution of the Commonwealth
of Guam shall impair the United States citizenship of the residents of
Guam or their descendants, or the entitlement of legally admitted
aliens permanently residing in Guam, to the respective rights and
privileges accorded to each such class of persons under the first
sentence of the fourteenth amendment of the United States Constitution.
(f) Notwithstanding any other provisions of law or of this Act, the
Commonwealth of Guam shall establish a trust to be known as the
``Chamorro Land Trust'' for the benefit of the indigenous Chamorro
people of Guam and composed of certain lands returned by the United
States before and after the effective date of this Act to the
Commonwealth of Guam. Nothing in this section shall inhibit or prevent
the direct return of lands to the original owners, or the establishment
of leasehold arrangements with them, by the Government of the
Commonwealth of Guam.
(g) The Constitution of the Commonwealth of Guam shall establish
reasonable residency requirements for the citizens of such Commonwealth
for the purposes of the right to vote in Commonwealth elections or to
hold any elective office established by the Constitution of Guam.
SEC. 103. MUTUAL CONSENT.
In order to respect the self-government granted to the Commonwealth
of Guam under this Act, the United States agrees to limit the exercise
of its authority so that the provisions of this Act may be modified
only with the mutual consent of the Government of the United States and
the Government of the Commonwealth of Guam.
TITLE II--APPLICABILITY OF FEDERAL LAW
SEC. 201. APPLICABILITY OF UNITED STATES CONSTITUTION.
Those portions of the United States Constitution which apply to
Guam on the effective date of this Act shall, unless specifically
modified by this Act, continue to apply under this Act. In addition,
the following provisions of and amendments to the Constitution of the
United States shall apply to the Commonwealth of Guam and shall have
the same force and effect in Guam as in the United States or in any
State of the United States: Article IV, section 2, clause 2 and section
4; the tenth amendment, and the first sentence of the fourteenth
amendment.
SEC. 202. EFFECT OF FEDERAL LAW.
Except as otherwise intended by this Act, no Federal laws, rules or
regulations passed after the date of this Act shall apply to the
Commonwealth of Guam unless mutually consented to by the United States
and the Government of the Commonwealth of Guam.
SEC. 203. JOINT COMMISSION.
(a)(1) There is hereby created a Joint Commission on the
Applicability of Federal Law (hereinafter referred to as the
``Commission'') to be composed of 7 members: 3 members and their
successors appointed by the President of the United States and 4
members and their successors appointed by the Governor with the advice
and consent of the legislature of the Commonwealth of Guam. The
appointees by the Government of Guam shall be citizens of the
Commonwealth of Guam who are or have been 10 years continuously
resident on Guam at the time of their appointment. Said appointees
shall serve at the pleasure of the President of the United States and
the Governor of the Commonwealth of Guam, respectively. Any vacancy
which may occur on the Commission shall not affect its powers or
functions but shall be filled in the same manner in which the original
appointment was made. Appointments shall be made within 60 days after
the effective date of this Act.
(2) The Commission shall adopt its own internal regulations to
govern its procedures and may delegate authority on particular issues
to some of its members.
(3) A majority of the Commission shall constitute a quorum for the
transaction of its business. The Commission may provide for the taking
of testimony, discussion of issues with members of the Federal
Government or Government of Guam, and the reception of evidence at
meetings at which there are present not less than three members of the
Commission. The Chairman of the Commission shall call a meeting to
organize the Commission within 30 days after he and a majority of the
members of the Commission have been appointed.
(b) The Commission shall--
(1) be used for regular consultations between the
Government of the United States and the Government of the
Commonwealth of Guam on all matters affecting the relationship
between them;
(2) study existing statutes and regulations affecting the
relationship between Guam and the United States;
(3) review the policies and procedures of the Federal
agencies as such policies and procedures relate to the
relationship between Guam and the United States;
(4) compile data as may be necessary for the conduct of the
Commission's work or for the implementation of this Act;
(5) draft such modifications in existing laws, regulations,
policies, and procedures as will, in the judgment of the
Commission, best serve to carry out the purposes of the
Commission or this Act;
(6) obtain, if possible, the modification of these laws,
regulations, and procedures by negotiation and mediation, such
as issues concerning land claims and war claims by the people
of Guam; and
(7) seek to obtain the maximum economic development and
political autonomy for the Commonwealth of Guam without
impairing United States national security interests.
The heads of Federal departments and agencies are authorized and
directed to furnish whatever assistance is requested by the Commission,
without reimbursement, except classified information directly related
to national security interests.
(c) The Commission is authorized to appoint and fix the
compensation of an Executive Secretary and such other additional
personnel as may be necessary to enable the Commission to carry out its
functions without regard to the Federal Property and Administrative
Services Act of 1949 and civil service laws, rules, and regulations,
but any Federal employee subject to those laws, rules, and regulations,
who may be detailed to the Commission (which detail is hereby
authorized) shall retain his civil service status without interruption
or loss of status or privilege. In addition, the Commission may enter
into contracts in order to carry out its mandate.
(d) The United States will bear the cost of the work of the
Commission.
SEC. 204. DELEGATION OF AUTHORITY.
The Congress hereby authorizes the President or his designee to
delegate to the Governor of Guam total or partial performance of
functions now vested in administrative agencies in the Federal
Government. The President or his designee and the Governor of Guam
shall consult from time to time on the implementation of this
provision.
TITLE III--FOREIGN AFFAIRS AND DEFENSE
SEC. 301. UNITED STATES AUTHORITY.
The United States shall have responsibility for an authority with
respect to matters relating to foreign affairs and defense that affect
the Commonwealth of Guam.
SEC. 302. CONSULTATION WITH GUAM.
(a) The United States agrees to consult with the Commonwealth of
Guam in advance of negotiations toward any treaties or international
agreements, including Executive Agreements, which affect the well-being
of the people of Guam.
(b) No military security zones shall be established and no foreign
military personnel shall be stationed on the Island of Guam without
approval of the Government of the Commonwealth except in time of
declared war, and no military bases will be established without
consultation with the Governor of the Commonwealth of Guam.
(c) The United States shall consult with the Government of the
Commonwealth of Guam with respect to any proposed plan to increase or
decrease Department of Defense activities within the Commonwealth.
SEC. 303. UNITED STATES CONSULAR AND TRADE ASSISTANCE.
(a)(1) The United States shall assist and facilitate the
establishment by Guam of offices in the United States and abroad.
(2) The United States shall assist the Commonwealth of Guam to
become a member or participate in appropriate regional and other
international organizations to include, but not be limited to, the
South Pacific Forum, the regional organizations of the United Nations
Specialized agencies, and the Asian Development Bank. Under such
authority Guam shall be free to accept and grant financial and
technical assistance, to enter into bilateral and multilateral
agreements to promote joint ventures private and public, exchange
programs, and to become a party to all agreements between and among
foreign entities involving regional and subregional affairs. The
Commonwealth may enter into agreements with sovereign states, and the
political entities resulting from the Trust Territory of the Pacific
Islands, relative to reciprocal trade and tax questions and their
application to the respective jurisdictions.
(b) The Government of the United States shall seek to obtain from
foreign countries favorable treatment for exports from the Commonwealth
of Guam and will encourage other countries to consider the Commonwealth
of Guam a developing territory.
SEC. 304. NUCLEAR WASTE.
(a) The United States shall not utilize the water surrounding the
Commonwealth of Guam or the island for dumping or storage of nuclear
waste.
(b) The United States shall clean up and make safe for human
habitation all chemical waste dump sites used by the military in the
past and at present, and shall not, at any time, use the island and the
surrounding waters of Guam as a depository for hazardous chemicals in
the future.
(c) The United States shall compensate, in a manner to be decided
by the District Court of Guam, any person injured as a result of
chemical, nuclear, or other hazardous materials stored, used, or
disposed of by agencies of the United States Government in the
Commonwealth of Guam or its surrounding waters.
TITLE IV--COURTS
SEC. 401. JUDICIAL RELATIONSHIP OF GUAM TO THE UNITED STATES.
The relations between the courts established by the Constitution or
laws of the United States and the local courts of Guam with respect to
appeals, certiorari, removal of causes, the issuance of writs of habeas
corpus, and other matters or proceedings shall be governed by the laws
of the United States pertaining to the relations between the courts of
the United States, including the Supreme Court of the United States,
and the courts of the several States in such matters and proceedings.
SEC. 402. JURISDICTION OF DISTRICT COURT.
(a) The District Court of Guam established by section 22 of the
Organic Act of Guam, as amended, is continued by this Act as the
``District Court of Guam''.
(b) The District Court of Guam shall have the jurisdiction of a
district court of the United States, including, but not limited to, the
diversity jurisdiction provided for in section 1332 of title 28, United
States Code, and that of a bankruptcy court of the United States.
SEC. 403. APPLICABLE DISTRICT COURT RULES.
Where appropriate, the provisions of part II of title 18 and of
title 28, United States Code, and notwithstanding the provision in rule
54(a), Federal Rules of Criminal Procedure, relating to the prosecution
of criminal offenses on Guam by information, the rules of practice and
procedure heretofore or hereafter promulgated and made effective by the
Congress or the Supreme Court of the United States pursuant to titles
11, 18, and 28, United States Code, shall apply to the District Court
of Guam and appeals therefrom; except that the terms, ``Attorney for
the government'' and ``United States Attorney'', as used in the Federal
Rules of Criminal Procedure, Federal Rules of Civil Procedure and
Federal Rules of Appellate Procedure shall, when applicable to cases
arising under the laws of Guam, including the Guam Commonwealth income
tax, mean the Attorney General of Guam or such other person or persons
as may be authorized by the laws of Guam to act therein.
SEC. 404. DISTRICT COURT JUDGE, UNITED STATES ATTORNEY, MARSHAL.
(a) The President shall appoint, by and with the advice and consent
of the Senate, a judge for the District Court of Guam who shall hold
office for the term of 10 years and until his successor is chosen and
qualified unless sooner removed by the President for cause. The judge
shall receive a salary payable by the United States which shall be at
the rate prescribed for judges of the United States district courts.
The chief judge of the Ninth Judicial Circuit of the United States may
assign a judge of a local court of record, a judge of the High Court of
the Trust Territory of the Pacific Islands, a circuit or district judge
of the Ninth Circuit, or a recalled senior judge of the District Court
of Guam or of the District Court for the Northern Mariana Islands, and
the Chief Justice of the United States may assign any other United
States circuit or district judge with the consent of the judge so
assigned and of the chief judge of his circuit, to serve temporarily as
a judge in the District Court of Guam whenever it is made to appear
that such an assignment is necessary for the proper dispatch of the
business of the court.
(b) The President shall appoint, by and with the advice and consent
of the Senate, a United States attorney and United States marshal for
Guam to whose offices the provisions of chapters 31 and 33 of title 28,
United States Code, respectively, shall apply.
(c) The judge of the District Court of Guam and the United States
attorney and marshal serving on the effective date of this section
shall continue to hold their positions under this Act until the
expiration of their current terms of office.
TITLE V--TRADE
SEC. 501. GUAM-UNITED STATES FREE TRADE AREA.
(a) The Commonwealth of Guam will remain outside the customs
territory of the United States, and no duty, tariff, or quota
restrictions shall be imposed or collected by the United States.
Economic, trade, and commercial relationships between the United States
and the Commonwealth of Guam shall be conducted within the framework of
the free trade area between the United States and the Commonwealth of
Guam as established by subsection (b).
(b) The Commonwealth of Guam shall not impose duties, quotas, or
other restrictions on products of the United States imported into Guam,
nor shall the United States impose duties, quotas, or other
restrictions on ``products of Guam'' imported into the United States,
nor shall the United States treat products of Guam as having originated
in any other country.
(c) The term ``products of Guam'' shall mean articles that contain
at least 30 percent value added in Guam. Value added includes--
(1) all actual labor costs involved in the growth,
production, manufacture, or assembly of the specific
merchandise, including fringe benefits, on-the-job training,
and the cost of engineering supervisory, quality control, and
similar personnel;
(2) dies, molds, tooling, and depreciation on machinery and
equipment which are allocable to the specific merchandise; and
(3) research, development, design, engineering, and
blueprint costs insofar as they are allocable to the specific
merchandise; and costs of inspecting and testing the specific
merchandise.
(d) The Commonwealth of Guam may impose, increase, reduce, or
eliminate duties and other restrictions--
(1) on products that originate in any area outside the
customs territory of the United States and that are imported
into Guam; and
(2) on exports from Guam, whether or not products of Guam.
(e) The Governor of Guam shall make a certificate that the origin
of the products as defined in subsection (c) above is the Commonwealth
of Guam pursuant to the provisions of this Act. An agent of the United
States Customs Service stationed on Guam shall then perform such
customs inspections as are necessary for compliance with this Act and
the appropriate laws of the United States. Upon completion of such
inspections such products shall enter the United States without further
inspection by the United States Customs Service.
(f) Nothing herein contained shall be construed to have any effect
on any obligations or benefits accruing to the Commonwealth of Guam or
the United States under the Generalized System of Preferences.
(g) Except as provided for in subsection (b) above the Trade and
Development Act of 1974 shall continue to apply to the Commonwealth of
Guam.
TITLE VI--TAXATION
SEC. 601. MIRROR IMAGE TAX.
(a) The income tax laws in force in the United States of America
and those which may hereafter be enacted shall be held to be likewise
in force in Guam.
(b) The income tax laws in force in Guam pursuant to subsection (a)
of this section shall be deemed to impose a separate Commonwealth
income tax, payable to the Government of Guam, which tax is designated
the ``Guam Commonwealth Income Tax''.
(c) The administration and enforcement of the Guam Commonwealth
Income Tax shall be performed pursuant to the laws of Guam. Any
function needful to the administration and enforcement of the income
tax laws in force in Guam pursuant to subsection (a) of this section
shall be performed by any duly authorized officer or employee of the
Government of Guam.
(d)(1) The income tax laws in force in Guam pursuant to subsection
(a) of this section include, but are not limited to, the following
provisions of the Internal Revenue Code of 1954, where not manifestly
inapplicable or incompatible with the intent of this section: Subtitle
A (not including chapter 2 and section 931); chapters 24 and 25 of
subtitle C, with reference to the collection of income tax at source on
wages; and all provisions of subtitle F which apply to the income tax,
including provisions as to crimes, other offenses and forfeitures
contained in chapter 75. For the period after 1950 and prior to the
effective date of the repeal of any provision of the Internal Revenue
Code of 1939 which corresponds to one or more of those provisions of
the Internal Revenue Code of 1954 which are included in the income tax
laws in force in Guam pursuant to subsection (a) of this section, such
income tax laws include, but are not limited to, such provisions of the
Internal Revenue Code of 1939.
(2) The Governor or his delegate or other official duly authorized
to act under the laws of Guam shall have the same administrative and
enforcement powers and remedies with regard to the Commonwealth of Guam
Income Tax as the Secretary of the Treasury and other United States
officials of the executive branch have with respect to the United
States income tax. Rules and regulations required for enforcement of
the Commonwealth of Guam income tax shall be prescribed pursuant to the
laws of Guam. The Governor or his delegate or other official duly
authorized to act under the laws of Guam shall have authority to issue,
from time to time, in whole or in part, the text of the income tax laws
in force in Guam pursuant to subsection (a) of this section.
(e) In applying as the Commonwealth of Guam Income Tax the income
tax laws in force in Guam pursuant to subsection (a) of this section,
except where it is manifestly otherwise required, the applicable
provisions of the Internal Revenue Code of 1954 and 1939 shall be read
so as to substitute ``Guam'' for ``United States,'' ``Governor or his
delegate or other official duly authorized to act under the laws of
Guam'' for ``Secretary or his delegate,'' ``Governor or his delegate or
other official duly authorized to act under the laws of Guam'' for
``Commissioner of Internal Revenue'' and ``Collector of Internal
Revenue'' for ``Collector of Internal Revenue,'' ``District Court of
Guam'' for ``District Court'' and with other changes in nomenclature
and other language, including the omission of inapplicable language,
where necessary to effect the intent of this section.
SEC. 602. ENFORCEMENT INSTITUTIONS.
(a) Any act or failure to act with respect to the Guam Commonwealth
Income Tax which constitutes a criminal offense under Chapter 75 of
Subtitle F of the Internal Revenue Code of 1986, or the corresponding
provisions of the Internal Revenue Code of 1939, as included in the
income tax laws in force in Guam pursuant to this section, shall be an
offense against the Government of Guam and may be prosecuted in the
name of the Government of Guam by the appropriate officers thereof.
(b) The Government of Guam shall have a lien with respect to the
Guam Commonwealth Income Tax in the same manner and with the same
effect and subject to the same conditions, as the United States has a
lien with respect to the United States income tax. Such lien in respect
of the Guam Commonwealth Income Tax shall be enforceable in the name of
and by the Government of Guam. Where filing of a notice of lien is
prescribed by the income tax laws in force in Guam pursuant to
subsection (a) of this section, such notice shall be filed in the
Office of the Clerk of the District Court of Guam or such other court
as the Guam Legislature may provide.
(c)(1) The District Court of Guam shall have exclusive original
jurisdiction over all judicial proceedings in Guam, both criminal and
civil, regardless of the degree of the offense or of the amount
involved, with respect to the Guam Commonwealth Income Tax.
(2) Suits for the recovery of any Guam Commonwealth Income Tax
alleged to have been erroneously or illegally assessed or collected, or
of any penalty claimed to have been collected without authority, or of
any sum alleged to have been excessive or in any manner wrongfully
collected, under the income tax laws in force in Guam, pursuant to
subsection (a) of this section, may, regardless of the amount of claim,
be maintained against the Government of Guam subject to the same
statutory requirements as are applicable to suits for the recovery of
such amounts maintained against the United States in the United States
District Court of Guam with respect to the United States income tax.
When any judgment against the Government of Guam under this paragraph
has become final, the Governor shall order the payment of such
judgments out of any unencumbered funds in the Treasury of Guam.
(3) Execution shall not issue against the Governor or any officer
or employee of the Government of Guam on a final judgment in any
proceeding against him for any acts or for the recovery of money
exacted by or paid to him and subsequently paid into the Treasury of
Guam, in performing his official duties under the income tax laws in
force in Guam pursuant to subsection (a) of this section, if the court
certifies that probable cause existed, or such officer or employee
acted under the direction of the Governor or his delegate or other
official duly authorized to act under the laws of Guam. When such
certificate has been issued, the Governor shall order the payment of
such judgment out of any unencumbered funds in the Treasury of Guam.
(4) A civil action for the collection of the Guam Commonwealth
Income Tax, together with fines, penalties, and forfeitures, or for the
recovery of any erroneous refund of such tax, may be brought in the
name of and by the Government of Guam in the District Court of Guam or
in any district court of the United States or in any court having the
jurisdiction of a district court of the United States.
(5) The jurisdiction conferred upon the District Court of Guam by
this subsection may be subject to transfer to any local court by the
Legislature of Guam.
SEC. 603. REBATE OF TAXES.
The Government of the Commonwealth of Guam may by local law provide
for the rebate or reduction of any taxes received by it in order to
assist new industries coming to Guam or to assist Guam's economic
development.
SEC. 604. GUAM INCOME TAX AUTHORITY.
(a) The Commonwealth of Guam shall have the power to determine
under the laws of Guam the nature and amount of taxes imposed upon the
income and property of persons within its jurisdiction, from whatever
source derived.
(b) The income tax established in section 601 of this Act shall be
repealed one year following certification by the Chief Executive of
Guam that Guam has enacted into law a comprehensive local income tax to
replace that set forth in section 601. Upon this repeal the income tax
laws of the United States, except for chapters 2 and 21 of the Internal
Revenue Code of 1954, shall not be applicable to Guam or to the persons
within the jurisdiction of Guam who have met their tax obligations
imposed by the laws of Guam.
SEC. 605. BONDS TAX EXEMPTION.
All bonds or other obligations issued by the Commonwealth of Guam
or by its authority shall be exempt, as to principal and interest, from
taxation by the Government of the United States, or by any State or
Territory or any political subdivision thereof, or by the District of
Columbia.
TITLE VII--IMMIGRATION
SEC. 701. GUAM IMMIGRATION AUTHORITY.
(a) The Congress recognizes that Guam is a small and densely
populated insular commonwealth with limited infrastructure and
resources, that it is that portion of the United States which is in
closest proximity to nations of Asia and the Pacific which supply a
large proportion of the immigrants coming to the United States, that
significant numbers of such immigrants have in recent years chosen to
make Guam their home, and that the admission of substantial additional
numbers of immigrants to Guam threatens to produce a severe impact on
the limited infrastructure, health, education, housing, and other
services available in Guam. Congress therefore further recognizes that
there is a necessary and compelling need henceforth to limit the number
of persons permitted to immigrate to Guam, and therefore the
Commonwealth of Guam shall have the authority to control entry of all
aliens into the Commonwealth of Guam to include the admission,
exclusion, and expulsion of such aliens.
(b) The Immigration and Nationality Act, and Federal regulations
applicable thereto, shall remain applicable to Guam for 2 years from
enactment of this Act. The Commonwealth of Guam shall, within the 2-
year period of this subsection, enact a comprehensive law on
immigration for Guam, such law to become effective at the end of the
said 2-year period. Enactment of local law by the Legislature of Guam
under this authority, and the actions of the Commonwealth of Guam
pursuant to such authority shall be duly coordinated with the
Immigration and Nationality Service, the Department of Labor, and the
Department of State.
(c)(1) Such actions by the Commonwealth of Guam shall not impair
the free movement of United States citizens to and from Guam.
(2) Such authority shall not include naturalization of aliens for
United States citizenship.
(3) The Governor of Guam shall continue to have the authority to
issue United States passports within existing regulations.
(4) Entry of aliens into Guam under the authority of subsection (a)
above, shall not affect, either favorably or unfavorably, an alien's
entry to any other part of the United States. This title shall not
preclude a person who previously has been lawfully admitted for
permanent residence in the United States and who is otherwise
admissible from being readmitted in Guam upon return to the United
States.
(d) Guam shall not be considered as a port of entry for the
entrance into the United States of aliens lawfully admitted for
permanent residence into the United States except as provided for in
subsection (b) or in those cases where the Governor of Guam has made
labor determinations.
SEC. 702. GUAM-ONLY VISA.
United States consular officials, and other officials authorized to
issue visas for entry into the United States, are authorized to issue
visas for travel only to the Commonwealth of Guam for any alien seeking
to enter Guam as a nonimmigrant in order to encourage investors and
tourists to come to Guam. Regulations governing the issuance of such
visas shall be coordinated with the Governor of Guam. Such regulations
shall consider the points of origin, duration of permitted stay, the
means by which the aliens could alter visas to permit entry into the
United States, and other appropriate conditions to assure the
regulation serves the best interests of the Commonwealth of Guam. The
United States and the Commonwealth of Guam shall adopt appropriate
measures for the implementation and the enforcement of this section
upon or after entry of the aliens into Guam.
TITLE VIII--LABOR
SEC. 801. FEDERAL EMPLOYMENT.
In all vacancies in the Federal Civil Service occurring in Guam,
residents of Guam possessing the requisite standards of age, health,
character, education, knowledge, and experience shall be given
preference over transfers of persons from off Guam or the recruiting of
persons from outside Guam.
SEC. 802. GUAM LABOR LAWS.
Except and to the extent prohibited by Congress, the Commonwealth
of Guam shall have authority to enact and enforce all laws regulating
or affecting employment in the Commonwealth. All applicable laws of the
United States which regulate employment on Guam on the effective date
of this Act shall remain applicable to Guam until replaced as to their
applicability to Guam by duly enacted law of the Guam Legislature.
TITLE IX--TRANSPORTATION AND TELECOMMUNICATIONS
SEC. 901. MARITIME SHIPPING.
(a) No provision of the laws of the United States, including,
without limitation, the vessel documentation laws of the United States,
shall apply to prevent the United States registration of, and use of,
any foreign-built vessel (including vessels engaged in towing, barges,
dredges, vessels or boats leased, rented, or chartered to another for
any use, including, without limitation, vessels used to take out
chartered fishing and diving parties or sightseeing tours) for any
purpose whatsoever within the internal waters, harbors, territorial sea
and adjacent Exclusive Economic Zone around Guam.
(b) The shipment of fish or fish products from Guam to any
coastwise point of the United States shall not be subject to the
coastwise laws of the United States.
(c) The application of the coastwise laws of the United States to
Guam pursuant to 46 U.S.C. 883 shall be periodically examined by the
Commission to determine, mutually, the desirability of the continued
applicability of such laws to Guam. Such determination by the
Commission shall be based solely on the criteria of whether such laws
or any or a part thereof as applied to Guam constrain Guam's economic
development and, if such a determination is made, the Commission shall
recommend such laws should not continue to apply to Guam: Provided,
That so long as the coastwise laws are applicable to Guam the United
States Government shall be responsible for ensuring adequate and
reliable cargo service between Guam and the United States as determined
mutually in the Commission.
SEC. 902. AIRLINES.
(a) The Governor of Guam shall have the authority to sponsor any
qualified air service carrier to come to Guam subject only to
presidential consultation concerning articulated foreign policy and
national defense interests of the United States. The Commonwealth of
Guam shall be exempt from all bilateral treaties between the United
States and foreign states with respect to scheduling and to technical
specifications of aircraft, other than safety requirements, for foreign
or United States charter passenger flights to and from Guam where such
flights originate from foreign jurisdictions. This provision shall not
be applied in such a manner as to impair regularly scheduled passenger
and cargo flights from any of the several United States States and
Territories to and from Guam.
(b) The Commonwealth of Guam shall remain an ``eligible point'' for
purposes of being ensured essential air transportation under applicable
provisions of the Federal Aviation Act of 1958, as amended by Public
Law 98-213, section 10, with passenger and other service to be
scheduled to provide regular and satisfactory delivery of postal mail
and cargo to and from the United States.
(c) In addition to any other requirement in compliance with Federal
law for new, additional, or changed routes, United States domestic air
carriers shall obtain the concurrence of the Governor of Guam on any
application filed for such service to Guam.
SEC. 903. TELECOMMUNICATIONS.
The Commonwealth of Guam shall be defined as domestic for the
purposes of setting rates in telecommunications by the Federal
Communications Commission.
TITLE X--LAND, NATURAL RESOURCES AND UTILITIES
SEC. 1001. AUTHORITY OVER LAND AND RESOURCES.
(a) The Government of the Commonwealth of Guam shall have power of
eminent domain over property within the Commonwealth in accord with the
Constitution of Guam.
(b) The Commonwealth of Guam shall have jurisdiction over all
living and nonliving natural resources of the seabed, subsoil,
tidelands, and adjacent territorial waters, as defined by the United
States law, of the Island of Guam. The Commonwealth shall exercise
rights to determine the conditions, including pollution control, and
terms of all scientific research, management, exploration, and
exploitation of all ocean resources and all sources of energy and
prevention of pollution within the 200-mile Exclusive Economic Zone,
including pollution originating outside the zone that poses a threat
within the zone.
(c) The United States may, upon written notice to the Government of
the Commonwealth of Guam, acquire for public purposes in accordance
with Federal laws and procedures, any interest in real property in the
Commonwealth only by voluntary means, under such terms and conditions
as may be negotiated by the parties. The United States will continue to
recognize and respect the scarcity and special importance of land in
the Commonwealth of Guam. If the United States must acquire any
interest in real property, it will follow the policy of seeking to
acquire only the minimum area necessary to accomplish the public
purpose for which the real property is required, of seeking only the
minimum interest in real property necessary to support such public
purpose, and of seeking first to satisfy its requirement by acquiring
an interest in public rather than private real property. No interest in
real property on Guam will be acquired by the United States unless duly
authorized by the Congress of the United States and for which
appropriations are available.
(d) The United States agrees not to exercise within the
Commonwealth the power of eminent domain except in time of war and then
only to the extent necessary and in compliance with applicable United
States and Commonwealth of Guam laws, and with full recognition of due
process required by the Constitutions of Guam and the United States.
(e) The Commonwealth of Guam is exempt from the Federal regulations
governing the transfer or sale of excess Federal real property. All
excess real properties of the United States on the Island of Guam
released after establishment of the Commonwealth will be conveyed in
fee simple to the Government of the Commonwealth of Guam without any
condition, limitation or reversion clause in said conveyance.
(f) All land heretofore transferred to the Government of Guam by
the United States are released from any and all provisions limiting the
use of such land, and are conveyed in fee simple.
SEC. 1002. TRANSFER OF EXCESS FEDERAL REAL PROPERTY.
All real property, including undeveloped land and developed
recreational facilities, controlled or owned by any United States
military service or Federal agency on Guam and not necessary for direct
and continuous operational, logistical, or security use as a military
facility or other Federal function shall be transferred as excess
Federal real property to the Government of Guam: Provided, That all
national parks, historical sites, monuments, and cemeteries shall be
exempt from this provision. Such transfers will be, whenever possible,
at no cost to the people of Guam, or, when appropriate, at cost no
higher than the valuation of the property at the time of original
acquisition by the Federal authority, regardless of any subsequent
alterations or additions to the property. Final determination of which
Federal real property is excess to Federal needs, and the authority to
mandate prompt and fair transfer to the Government of Guam by the
Federal proprietor, shall be with the Joint Commission after
consultations with the proprietor.
SEC. 1003. ACCESS TO FEDERAL PROPERTY.
(a) All recreational facilities, and all historical and
archaeological sites on real property retained under Federal, civil, or
military authority shall be open to access and use by the residents of
Guam so long as military security requirements are not compromised.
(b) Except where prevented by military security requirements,
easements for roadways or other means of public access through property
retained under Federal, civil, or military authority shall be granted
the Government of Guam when such easements constitute the only
practicable means of land access by the Government of Guam or the
public to localities within the jurisdiction of the Government of Guam.
(c) The Joint Commission shall determine, after consultation with
the general proprietor, which Federal recreational facilities and which
easements over Federal property shall be open to the Government of Guam
and to the general public on Guam and the manner of access.
SEC. 1004. AUTHORITY OVER UTILITIES.
Within 90 days after the enactment of this Act, the United States
shall transfer to the Commonwealth of Guam all rights, title, and
interest possessed by the United States in the island's power, water,
sewer, and other utility systems, except for those portions of the
systems which are located within the confines of property owned by the
United States and which are used solely for the purposes of the United
States, and which do not serve or impact upon the normal operations of
the island's utility system. The Government of the Commonwealth of Guam
may decline to accept any portion of such utilities which it believes
would act as a detriment to effective use of the utilities it owns. The
United States shall provide access for the Commonwealth of Guam, or its
agents, to all utilities and transmission lines which the Commonwealth
owns on Federal property on Guam.
TITLE XI--UNITED STATES FINANCIAL ASSISTANCE
SEC. 1101. RETURN OF TAXES AND FEES.
All customs duties and Federal income taxes derived from Guam, the
proceeds of all taxes collected under the internal revenue laws of the
United States on articles produced in Guam and transported to the
United States, its Territories, or possessions, or consumed in Guam,
and the proceeds of any other taxes which may be levied by the Congress
on the inhabitants of Guam (including, but not limited to, compensation
paid to members of the Armed Forces and pensions paid to retired
civilian and military employees of the United States, or their
survivors, who are residents of, or who are domiciled in, Guam), and
all quarantine, passport, immigration, and naturalization fees
collected in Guam shall be covered into the Treasury of Guam and held
in account for the Government of Guam in accordance with the annual
budgets except that nothing in this Act shall be construed to apply to
any tax imposed by Chapter 2 or 21 of the Internal Revenue Code of
1954.
SEC. 1102. EQUAL FINANCE FOR GUAM CITIZENS WITH STATES.
The laws of the United States providing Federal benefits and
financial assistance and which have a general application to the
several States shall be applicable to Guam, including section 228 or
title II and title XVI of the Social Security Act (Supplemental
Security Income). The formula for granting such financial assistance to
Guam and its residents shall be the same as the formula applied to the
several states and their residents unless such formula cannot, on its
face, be applied to Guam or it is specifically stated to the contrary
in this Act.
SEC. 1103. RETURN OF ECONOMIC ZONE FEES.
The Commonwealth shall have paid to the Treasury of Guam all
licensing and other fees obtained by permitting foreign vessels to fish
or other exploitation of the 200-mile Exclusive Economic Zone of Guam.
SEC. 1104. FEDERAL PAYMENT.
(a) The Governor of Guam, in preparing an annual budget for the
Government of the Commonwealth of Guam, shall develop meaningful
expenditure and revenue comparisons based on data supplied by the
Bureau of the Census and other independent, reliable sources and
identify elements of cost and benefits to Guam which result from the
unusual role of Guam as one of the Nation's principal military bastions
in the Far East despite its small size. The results of the studies
conducted by the Governor under this subsection shall be made available
to the Guam Legislature and to the Federal Office of Management and
Budget for their use in reviewing and revising the Governor's request
with respect to the level of appropriation for the annual Federal
payment to the Commonwealth of Guam. Such Federal payment should
operate to encourage efforts on the part of the Government of Guam to
maintain and increase its level of revenues and to seek such
efficiencies and economies in the management of its programs as are
possible.
(b) The Governor, in studying and identifying the costs and
benefits to Guam brought about by its role in the nation's national
security, should to the extent feasible, among other elements,
consider--
(1) revenues unobtainable because of the relative lack of
taxable commercial and industrial property;
(2) revenues unobtainable because of the relative lack of
taxable business income;
(3) potential revenues that would be realized if exemptions
from Guam taxes were eliminated;
(4) net costs, if any, after considering other compensation
for tax base deficiencies and direct and indirect taxes paid,
of providing services to organizations and corporate offices
doing business only with the Defense Department;
(5) recurring and nonrecurring costs of unreimbursed
services to the Defense Department;
(6) recurring and nonrecurring costs of unreimbursed
services rendered Guam by the Defense Department; and
(7) relative tax burden on Guam residents compared to that
of resident in other jurisdictions in the Pacific.
(c) The Governor shall submit his request, with respect to the
amount of an annual Federal payment, to the Guam Legislature. The Guam
Legislature shall by act approve, disapprove, or modify the Governor's
request. After the action of the Legislature, the Governor shall, by
December 1st of each calendar year, in accordance with the provisions
in the Budget and Accounting Act, 1921 (31 U.S.C. 2), submit such
request to the President for submission to the Congress. Each request
regarding an annual Federal payment shall be submitted to the President
7 months prior to the beginning of the fiscal year for which such
request is made and shall include a request for an annual Federal
payment for the next following fiscal year.
SEC. 1105. TRANSITION ASSISTANCE TO THE COMMONWEALTH.
The Government of the United States in order to assist Guam to make
the political and economic transition to Commonwealth agrees to assist
the Commonwealth of Guam as follows:
(1) The United States agrees to--
(A) finance the costs of institutional changes
connected with the change in Guam's political
relationship with the United States, to include staff,
contracts, and referendum costs of the Guam Commission
on Self-Determination;
(B) help meet the capital needs of Guam, in
accordance with the following section, necessary to
Guam's long-term, self-sustaining development; and
(C) establish an economic development fund to
assist expansion of the private sector.
(2) There is hereby authorized such sums as may be
necessary to implement a long-term capital improvement program
approved by the Congress permitting the Commonwealth of Guam to
establish an infrastructure base adequate for development of
the private sector and to strengthen the utility of Guam for
United States national security purposes.
(3) Guam shall submit a plan for Congressional approval
showing the total amounts proposed, the distribution of funds
by projects, phases, or programs with an assessment of needs,
costs, benefits and provision of local funds where available.
The capital improvement plan shall take into account all
related economic development projects and plans by the
Commonwealth of Guam.
(4) There is hereby authorized a revolving fund to
establish an Economic Development Fund on Guam with authority
to assist in the financing of the private sector needs of Guam
in its efforts to achieve a higher standard of living for its
people as members of the American community and to develop the
economic resources needed to meet the financial
responsibilities of local self-government. To this end, the
Economic Development Fund is authorized to provide financial
and other assistance to increase investments (including loans,
tax incentives, guarantees and equity capital) and to start or
expand commercial businesses on Guam in order to provide
employment and ownership opportunities for the residents of
Guam. Participation by private banks and savings and loan
institutions in the Economic Development Fund shall be
encouraged. Funds shall be made available to the Economic
Development Fund by Congress after the following conditions
have been met:
(A) The submission of a set of procedures to
Congress for the participation of private lending
institutions and for the processing of applications for
assistance, indicating the role of the Economic
Development Fund's staff, outside consultants, and
board review, and to guide reviewers in making
assistance and determining eligibility.
(B) Submission of an economic development plan, to
be updated annually, by the Governor of Guam to
Congress, showing the proposed amount, the proposed
distribution of the funds, and the terms on which the
funds will be made available. Such plan will take into
account any capital improvement projects and other
programs related to economic development. The funds
granted to the Economic Development Fund shall be a
revolving fund, available to the Economic Development
Fund until expended.
(C) The Economic Development Fund shall be headed
by a five-member Board of Directors with financial
experience for fixed terms and selected by the Governor
of Guam. The Economic Development Fund shall issue a
public and audited report annually, setting forth the
administrative and programmatic developments for the
year with full disclosure of the utilization of its
funds, the recipients of its assistance, and the
applications in process.
TITLE XII--TECHNICAL AMENDMENTS AND INTERPRETATION
SEC. 1201. INTERPRETATION AND JURISDICTION.
(a) It is the intention of Congress that this Act provide complete
internal self-government for the Commonwealth of Guam and, to that end,
that this Act be interpreted liberally to accomplish that purpose.
(b) When ruling upon the laws of the Commonwealth, the courts of
the United States shall give the same deference to the laws of the
Commonwealth as they give to the laws of the several States.
Jurisdiction to interpret the provisions of this Act is vested in
appropriate courts of the United States and in the local courts of
Guam.
SEC. 1202. CONTINUED EFFECTIVENESS OF LOCAL LAWS.
The laws of Guam in force on the date of enactment of this Act,
except as amended by this Act, are hereby continued in force, subject
to modification or repeal by the Legislature of Guam.
SEC. 1203. ACTS REPEALED AND CONTINUED.
(a) All laws or parts of laws inconsistent with this Act are hereby
repealed to the extent of such inconsistency.
(b) Upon the enactment of this Act, the following sections of the
Organic Act of Guam (Act of August 1, 1950, 64 Stat. 384), as amended,
are repealed: Sections 1, 2, and 3; fourth sentence of section 11,
sections 25, 27, 33, and section 34.
(c) Upon the effective date of the Constitution adopted by the
people of Guam, the following provisions of the Organic Act of Guam
(Act of August 1, 1950, 64 Stat. 384), as amended, and in effect at
that time, are repealed: Sections 5(a) through (t), 6, 7, 8, 9, 9-A,
10; the first three sentences of section 11; sections 12, 13, 14, 15,
16, 17, 18, 19, 20, 21, 22, 22A, 22B, 22C, 22D, 24, 26, 29, 30, and
section 31.
(d) The following sections of the Organic Act of Guam (Act of
August 1, 1950, 64 Stat. 384), as amended, shall continue in force and
shall be deemed to be a part of this Act: Section 5(u), beginning at
the fifth sentence, all the remainder of sections 11, 21-A, 24-A,
section 28 as modified by Article 10 of this Act; 32, and section 35.
(e) Public Law 94-584 (90 Stat. 2899), as amended, is repealed as
it affects Guam.
SEC. 1204. EFFECTIVE DATE OF THE GUAM COMMONWEALTH ACT.
This Act, upon approval by Congress, shall be submitted to the
registered voters of Guam for ratification through a plebiscite to be
held in accordance with the laws of Guam. This Act will become
effective upon the approval of this Act by a majority of the voters who
participate in such plebiscite, and at that time, except as provided in
section 1203 of this Act, the Organic Act of Guam, August 1, 1950, 64
Stat. 384, shall be repealed.
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