CONGRESSIONAL RECORD— HOUSE

HI i20

the islands are favorably renegotiated or
if the pending Federal suit finds that
petroleum excise taxes must be returned
to the Virgin Islands Treasury, territorial fiscel problems would dematerialize. Consequently, in deauthorizing Fed-

eral funds to bridge the gap, the other
body has reduced the Virgin Islands’

negotiating position to one of weakness.
‘We, in the House, deplore this shortsightedness and shall continue to support

the Virgin Islands’ government as it
seeks to restore its financtal self-respect.
Lastly, I wish to draw your attention
to an absurb situation in American
Samoa and the Northern Marianas, Because both governments are new and the
economics are still underdeveloped, a
gooddeal of financial support stems from
the Federal Government. Now, both ter-

ritories are also eligible for Federal programs, many of which stipulate a matching component. As a result, American
Samoa and the Northern Marianas are

expendinz Federal funds to meet a Federal matching requirement. Accordingly,

H.R. 3756 is amended to eliminate this
- absurdity with the waiving of all matching requirements less than $100,000.

Therefore, Mr. Speaker, as amended
H.R. 3756 ameliorates many difficulties
confronted by Americans living in the
insular areas, Therefore, I urge it unanimous passage.
Mr. Speaker, I withdraw my reserva~
:
tion of objection.
The SPEAKER pro tempore. Is there

objection to the request of the gentleman from California?
There was no objection.

The

pro

SPEAKER

tempore.

The

Clerk will report the proposed House

amendments to the Senate amendment.
The Clerk read the House amendments to the Senate amendment, as
follows:
In title I, after section
following newsection:

103, insert the

“Sec. 104. Notwithstanding any other pro-

vision of law, except in cases in which the
Federal program is terminated with respect

to all recipients under the program, Federal programs in the fields of education and
health care shall not cease to apply to the
Trust Territory of the Pacific Islands or any
successor government or governments, nor
shall

participation in

any applicable Fed-

eral programs in the fields of education and
health care by the Trust Territory of the
Pacific Islands or any successor government

Or governments be denied, cecreased or
ended, either before or after the termination
of the trusteeship, without the express approval of the U.S. Congress.”

In title II, after section 203, insert the

following new rections:
"SEc. 204(2) Section 3(da) of the Act entiticd ‘An Act to authorize annropriations
for certain insular areas of the United States,
and for other purposes’ (Public Law 95-348;

92 Strat. 487) is amended by inserting ‘(1)°
after ‘(d)’ and by inserting ‘or 1twon receipt

of a resolution adopted by both houses of

the legislature of tre Northern Martana
Isiands accompanied by a letter of request
from either the Governor or the Lieutenant
Governor of the Northern Marlana Islands,’
after ‘Constitution of the Northern Mariana
Islands,’ the first place it appears, and by
adding at the end of ‘(d)’ the following newParagraphs:

this subsection, the Secretary of the Treasury
(hereinafter In this subsection referred to
as the ‘Secretary’), or his detegate, at no
cost to the Northern Martanas government,
may (A) employ citizens of the Northern
Marlana Islands (as defined by Article IIT
of the Covenant to Establish a Commonwealth of the Northern Marlana Islands in
Political Union with the United States (approved, Public Law 94-241; 90 Stat. 265)),
or (B) use tha services of employees of the

government of the Northern Mariana Islands,
upon agreement to pay such government for

the us® of such services. In addition, the
Secretary, or his delegate, shall make every

effort to assure that citizens of the North-

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not later than September 30, .1980, that

Sections 1,2, 3, 4 and 5 of chapter 2 of Public

Law 1~30 of the Commonwealth of the North-

ern Mariana Islands or its successor, have
been repealed in their entirety, effective De-

ecember 31, 1931.
“(c) It is the sense of Congress that the
term ‘rebate’ as used in section C02 of Public Law 94-241 does not permit the abatement of taxes.”.

In title Il, change “Sec. 301." to “Sec.

301. (a)and add the following new subsec~
tion:
:
.
~“(b) Any civil action under soction 204 of
the Omnibus Territories Act of 1977 (91 Stat.

1162) shall bs barred unless it !s commenced

ern Mariana Islands (a3 so defined) are
trained to ultimately assume the adminis-

not later than April! 1, 1982."
In title IV, (a2) delete all of secticn 403
and insert in teu thereof the following:

the Secretary or his delegate under this section. Notwithstanding any other prorision
of law, the Secretary or his delegate is au--

vised Organic Act of the Virgin Islands ta

tration and enforcement duties required of

thorized to the maximum extent feasible in
administering and enforcing the requested
sections of the Covenant, to employ and
train Northern Marlana Islands’ citizens
without regard to U.S. Civil Servica hiring or
job classification laws or any employment

cellinga t{mposed upon the Secretary. The

preceding sentence shall not exempt such

Northern Martana Islands’ citizens so hired
from any other laws affecting Federal or
IRS employees’ and shall remain In effect

wntit the end of the third full Ascal year

following the date of enactment,
“(3) AS part of the administration of taxes
required by this subsection, the Secretary or

“Sec. 403. (a) Subsection 28(a) of the Re-

amended by inserting afcer the words ‘and

naturalization fees collected in the Virgin

Islands,’ the following:

‘(less the cost of collecting such duties,

taxes and feces as may be directly attribut-

able (as certified by the Comptroller of the
Virgin Islands) to the imaportation of petro-

leum products until January 1, 1932: Pro-

vided, That any other retained’ costs not

heretofore remitted pursuant to the Act of
August 18, 1978, shall be tammediately remitted to the Treasury of the Virglna Islands

notwithstanding
law).’
-

any

other

provision
:

of

(b) The paragraph entiticd ‘U.S. Customs

Service’ Involving the collection of customs

his delegate shall establish, at no cost to the
Northern Marianas government, a taxpayers Information service to provide suchine
formation and assistance to citizens of the
Northern Mariana Islands (a3 so defined) as

q@uties in the Virgin Islands in the Act of
July 25, 1979, is hereby repealed.”

tions 601, 692, 603, and 604 of the Covenant

the Virgin Islands.
“Sec. 406. Not later than two years efter

wealth of the Northern Mariana Islands.

ministrator of the General Services Administration shall convey, without consideration,

(b) After section 404, insert the following
new sections:
“Sec. 405. Any excise texes levied by the
Legislature of -the Virgin Islands may be
may be necessary for the filling of returns and
levied and collected as the Legislature of the
the payment of such taxes.”
“(b) The Secretary shall take such stevs ‘Virgin Islands may direct as soon as the
&S are necessary to ensure that the proceeds articles, goods, merchandise and commediof taxes collected under the provisions of sec- ties subject to sald tax are brought Into
(PL. 94-241) are covered directly upon collection into the treasury of the Common“Sec. 205. (a) Except as provided in sub-

section (c)}, any person, including an indlvidual, trust, estate, partnership, association,
company or corporation, which js a resident

of or which ts organized under the laws of
the Commonwealth of the Northern Mariana
Islands and which js subject to the provisions
of section 601 of the Covenant to Establish
the Commonwealth of the Northern Mariana
Isiands in Political Union with the United
States (P.L. 94-241), shall be exempted from
the requirements of such section with respect
to income derived frorn sources within the
Commonwesith of the Northern Marlana Is-

lands for taxable years beginning after December 31, 1978 and before January 1, 1981.

Nothing tn thls section shall be construed as
relieving such person from the obligation to
comnly with the requirements of section 601

with resoect to Income derived from sources
outside of the Commonwealth of the Northern Marfana Islands.

:

“(b) Except as provided in subsection (c),

any person, including an individual, trust,
estate, partnership, assoclation, company or
corporation, which ts a resident of or which

the date of enactment of this Act, the Ad-

all right, title and interest of the United
States in and to the property known as the
former District Court Buliding

(including

the parcel of land upon which sald building

is located), 48 B Norre Gade, St. Thomas,

Virgin Islands, to the Government of the
Virgin Islands.
.
“Sec. 407. Subsection (f) of section 2 of
the Act entitled ‘An Act tp authorize the
government of the Virgin Islands to Issue
bonds In anticipation of revenue receipts and
to authorize the guar«ntee of such bonds by
the United States uncor specified conditions,
and for other purposes’ (90 Stat. 1193; Pub-

lic Law 94-392; 48 U.S.C. 1574b) is amended
by striking out the last sentence and Inserting in leu thereof the following language:
‘No commitment to guarantee may be issued by the Secretary, and no guaranteed
but unobligated funds may be obligated by
the government of the Virgin Istands after
October 1, 1984. After October 1, 1984, any
unobligated proceeds of bonds or other obligations Issued by the government at the
Virgin Islands pursuant to this section shall

is organized under the laws of the Comumon-~
wealth of the Northern Martens Islands and
which is subtect to the provistons of section

be repaid immediately by the government of

(Public Law 94-341), shall be exempt from

lands’ making such repayment, the Secretary shall deduct the requis.:te amounts from

601 of the Covenant to Establish the Commonwealth of the Northern Mariana Islands
the requirements of such section with re-

spect to income from sources within the
Northern Mariona Islands for its taxable
year beginning after December 31, 1980, and

before January 1, 1982, provided that, the

(2) For purposes of carrying out any ad- : Secretary receives written notice from the

ministration and enforcement required by

February 25, 1980

Governor of the Northern Marlana Islands

the Virgin Islands to the Jenders wlth the
agreed upon interest. Should there be any
Gelay in the government of the Virgin Is-

moneys under his contro! that would otherwise be paid to the government of the Virgin
Islands under section 28(b) of the Revised

Organic Act of the Virgin Islands.'."
In title VI, (a) amend section 601 to read

as follows:

Select target paragraph3