Collapse to view only § 1910. Implementation of audit agreements

§ 1901. Approval of Compact of Free Association
(a) Federated States of Micronesia
(b) Marshall Islands
(c) Reference to Compact
(d) Amendment, change, or termination in Compact and certain agreements
(1) Mutual agreement by the Government of the United States as provided in the Compact which results in amendment, change, or termination of all or any part thereof shall be effected only by Act of Congress and no unilateral action by the Government of the United States provided for in the Compact, and having such result, may be effected other than by Act of Congress.
(2) The provisions of paragraph (1) shall apply—
(A) to all actions of the Government of the United States under the Compact including, but not limited to, actions taken pursuant to sections 431, 432, 441, or 442;
(B) to any amendment, change, or termination in the Agreement between the Government of the United States and the Government of the Federated States of Micronesia Regarding Friendship, Cooperation and Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association referred to in section 462(j) of the Compact and the Agreement between the Government of the United States and the Government of the Marshall Islands Concerning Mutual Security Concluded Pursuant to Sections 321 and 323 of the Compact of Free Association referred to in section 462(k) of the Compact;
(C) to any amendment, change, or termination of the agreements concluded pursuant to Compact sections 175, 177, and 221(a)(5), the terms of which are incorporated by reference into the Compact; and
(D) to the following subsidiary agreements, or portions thereof:
(i) Article II of the agreement referred to in section 462(a) of the Compact;
(ii) Article II of the agreement referred to in section 462(b) of the Compact;
(iii) Article II and Section 7 of Article XI of the agreement referred to in section 462(e) of the Compact;
(iv) the agreement referred to in section 462(f) of the Compact;
(v) Articles III and IV of the agreement referred to in section 462(g) of the Compact;
(vi) Articles III and IV of the agreement referred to in section 462(h) of the Compact; and
(vii) Articles VI, XV, and XVII of the agreement referred to in section 462(i) of the Compact.
(e) Subsidiary agreements deemed bilateral
(f) Effective date
(1) The President shall not agree to an effective date for the Compact, as authorized by this section, until after certifying to Congress that the agreements described in section 1902 of this title and section 1903 of this title have been concluded.
(2) Any agreement concluded with the Federated States of Micronesia or the Marshall Islands pursuant to sections 1902 and 1903 of this title and any agreement which would amend, change, or terminate any subsidiary agreement or portion thereof as set forth in paragraph (4) of this subsection shall be submitted to the Congress. No such agreement shall take effect until after the expiration of 30 days after the date such agreement is so submitted (excluding days on which either House of Congress is not in session).
(3) No agreement described in paragraph (2) shall take effect if a joint resolution of disapproval is enacted during the period specified in paragraph (2). For the purpose of expediting the consideration of such a joint resolution, a motion to proceed to the consideration of any such joint resolution after it has been reported by an appropriate committee shall be treated as highly privileged in the House of Representatives. Any such joint resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of Public Law 94–329.
(4) The subsidiary agreements or portions thereof referred to in paragraph (2) are as follows:
(A) Articles III and IV of the agreement referred to in section 462(b) of the Compact.
(B) Articles III, IV, V, VI, VII, VIII, IX, X, and XI (except for Section 7 thereof) of the agreement referred to in section 462(e) of the Compact.
(C) Articles IV, V, X, XIV, XVI, and XVIII of the agreement referred to in section 462(i) of the Compact.
(D) Articles II, V, VI, VII, and VIII of the agreement referred to in section 462(g) of the Compact.
(E) Articles II, V, VI, and VIII of the agreement referred to in section 462(h) of the Compact.
(F) The Agreement set forth on pages 388 through 391 of House Document 98–192 of March 30, 1984.
(5) No agreement between the United States and the Government of either the Federated States of Micronesia or the Marshall Islands which would amend, change, or terminate any subsidiary agreement or portion thereof, other than those set forth in subsection (d) of this section or paragraph (4) of this subsection shall take effect until the President has transmitted such agreement to the President of the Senate and the Speaker of the House of Representatives together with an explanation of the agreement and the reasons therefore.
(Pub. L. 99–239, title I, § 101, Jan. 14, 1986, 99 Stat. 1773.)
§ 1902. Agreements with Federated States of Micronesia
(a) Law enforcement assistance
(1) AgreementThe President of the United States shall negotiate with the Government of the Federated States of Micronesia an agreement pursuant to section 175 of the Compact which is in addition to the Agreement pursuant to such section dated October 1, 1982, and transmitted to the Congress by the President on February 20, 1985. Such additional agreement shall provide as follows:
(A) Mutual assistance in law enforcement
(B) Narcotics and control of illegal substances
(C) Other criminal laws
(2) Technical and training assistance
(3) Consultation
(4) Report
(b) Economic development plans review process
(1) Submission
(2) United States Government reviewThe United States shall not concur in those development plans described in paragraph (1) of this subsection until—
(A) after the President of the United States has conducted a review and reported the findings of the President to the Congress; and
(B) the Congress has had 30 days (excluding days on which both Houses of Congress are not in session) to review the findings of the President.
(3) Report
(4) Views and comments
(c) Agreement on auditsIn accordance with section 233 of the Compact, the President of the United States, in consultation with the Comptroller General of the United States, shall negotiate with the Government of the Federated States of Micronesia modifications to the “Agreement Concerning Procedures for the Implementation of United States Economic Assistance, Programs and Services Provided in the Compact of Free Association”, which shall provide as follows:
(1) General authority of the GAO to audit
(A) The Comptroller General of the United States (and his duly authorized representatives) shall have the authority to audit—
(i) all grants, program assistance, and other assistance provided to the Government of the Federated States of Micronesia under Articles I and II of Title Two of the Compact; and
(ii) any other assistance provided by the Government of the United States to the Government of the Federated States of Micronesia.
Such authority shall include authority for the Comptroller General to conduct or cause to be conducted any of the audits provided for in section 233 of the Compact. The authority provided in this paragraph shall continue for at least three years after the last such grant has been made or assistance has been provided.
(B) The Comptroller General (and his duly authorized representatives) shall also have authority to review any audit conducted by or on behalf of the Government of the United States. In this connection, the Comptroller General shall have access to such personnel and to such records, documents, working papers, automated data and files, and other information relevant to such review.
(2) GAO access to records
(A) In carrying out paragraph (1), the Comptroller General (and his duly authorized representatives) shall have such access to the personnel and (without cost) to records, documents, working papers, automated data and files, and other information relevant to such audits. The Comptroller General may duplicate any such records, documents, working papers, automated data and files, or other information relevant to such audits.
(B) Such records, documents, working papers, automated data and files, and other information regarding each such grant or other assistance shall be maintained for at least three years after the date such grant or assistance was provided and in a manner that permits such grants, assistance, and payments to be accounted for distinct from any other funds of the Government of the Federated States of Micronesia.
(3) Representative status for GAO representatives
(4) Annual financial statements
(5) “Audits” definedAs used in this subsection, the term “audits” includes financial, program, and management audits, including determining—
(A) whether the Government of the Federated States of Micronesia has met the requirements set forth in the Compact, or any related agreement entered into under the Compact, regarding the purposes for which such grants and other assistance are to be used; and
(B) the propriety of the financial transactions of the Government of the Federated States of Micronesia pursuant to such grants or assistance.
(6) Cooperation by Federated States of Micronesia
(Pub. L. 99–239, title I, § 102, Jan. 14, 1986, 99 Stat. 1775.)
§ 1903. Agreements with and other provisions related to Marshall Islands
(a) Law enforcement assistance
(1) AgreementThe President of the United States shall negotiate with the Government of the Marshall Islands an agreement pursuant to section 175 of the Compact which is in addition to the Agreement pursuant to such section dated May 30, 1982, and transmitted to the Congress by the President on February 20, 1985. Such additional agreement shall provide as follows:
(A) Mutual assistance in law enforcement
(B) Narcotics and control of illegal substances
(C) Other criminal laws
(2) Technical and training assistance
(3) Consultation
(4) Report
(b) Economic development plans review process
(1) Submission
(2) United States Government reviewThe United States shall not concur in those development plans described in paragraph (1) of this subsection until—
(A) after the President of the United States has conducted a review and reported the findings of the President to the Congress; and
(B) the Congress has had 30 days (excluding days on which both Houses of Congress are not in session) to review the findings of the President.
(3) Report
(4) Views and comments
(c) Ejit
(1) The President of the United States shall negotiate with the Government of the Marshall Islands an agreement whereby, without prejudice as to any claims which have been or may be asserted by any party as to rightful title and ownership of any lands on Ejit, the Government of the Marshall Islands shall assure that lands on Ejit used as of January 1, 1985, by the people of Bikini, will continue to be available without charge for their use, until such time as Bikini is restored and inhabitable and the continued use of Ejit is no longer necessary, unless a Marshall Islands court of competent jurisdiction finally determines that there are legal impediments to continued use of Ejit by the people of Bikini.
(2) If the impediments described in paragraph (1) do arise, the United States will cooperate with the Government of the Marshall Islands in assisting any person adversely affected by such judicial determination to remain on Ejit, or in locating suitable and acceptable alternative lands for such person’s use.
(3) Paragraph (1) shall not be applied in a manner which would prevent the Government of the Marshall Islands from acting in accordance with its constitutional processes to resolve title and ownership claims with respect to such lands or from taking substitute or additional measures to meet the needs of the people of Bikini with their democratically expressed consent and approval.
(d) Kwajalein payments
(1) Statement of policy
(2) Failure to pay
(3) Assistance
(e) Section 177 Agreement
(1) 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 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.
(2) In the event that the President determines that an investment management firm selected by the Government of the Marshall Islands does not meet the requirements specified in Article I of the Section 177 Agreement, the United States shall invoke the conference and dispute resolution procedures of Article II of Title Four of the Compact. Pending the resolution of such a dispute and until a qualified Fund Manager has been designated, the Government of the Marshall Islands shall place the funds paid by the United States pursuant to Article I of the Section 177 Agreement into an interest-bearing escrow account. Upon designation of a qualified Fund Manager, all funds in the escrow account shall be transferred to the control of such Fund Manager for management pursuant to the Section 177 Agreement.
(3) If the Government of the Marshall Islands determines that some other investment firm should act as Fund Manager in place of the firm first (or subsequently) selected by such Government, the Government of the Marshall Islands shall so notify the President of the United States, identifying the firm selected by such Government to become Fund Manager, and the President shall proceed to evaluate the qualifications of such identified firm.
(4) At the end of 15 years after the effective date of the Compact, the firm then acting as Fund Manager shall transfer to the Government of the Marshall Islands, or to such account as such Government shall so notify the Fund Manager, all remaining funds and assets being managed by the Fund Manager under the Section 177 Agreement.
(5) An annual report concerning all actions of the Fund Manager pursuant to the Section 177 Agreement and this joint resolution, including information prepared by the Fund Manager, shall be transmitted by the Government of the Marshall Islands to the Congress. Such report shall include such information (whether received from the Fund Manager or any other source) as relates to the disbursements provided for in Article II of the Section 177 Agreement. Such report shall be made public.
(f) Nuclear test effects
(g) Espousal provisions
(1) It is the intention of the Congress of the United States that the provisions of section 177 of the Compact of Free Association and the Agreement between the Government of the United States and the Government of the Marshall Islands for the Implementation of Section 177 of the Compact (hereafter in this subsection referred to as the “Section 177 Agreement”) constitute a full and final settlement of all claims described in Articles X and XI of the Section 177 Agreement, and that any such claims be terminated and barred except insofar as provided for in the Section 177 Agreement.
(2) In furtherance of the intention of Congress as stated in paragraph (1) of this subsection, the Section 177 Agreement is hereby ratified and approved. It is the explicit understanding and intent of Congress that the jurisdictional limitations set forth in Article XII of such Agreement are enacted solely and exclusively to accomplish the objective of Article X of such Agreement and only as a clarification of the effect of Article X, and are not to be construed or implemented separately from Article X.
(h) DOE radiological health care program; USDA agricultural and food programs
(1) Marshall Islands program
(2) Agricultural and food programsNotwithstanding any other provision of law, upon the request of the Government of the Marshall Islands, for the first fifteen years after the effective date of the Compact, the President (either through an appropriate department or agency of the United States or by contract with a United States firm or by a grant to the Government of the Republic of the Marshall Islands which may further contract only with a United States firm or a Republic of the Marshall Islands firm, the owners, officers and majority of the employees of which are citizens of the United States or the Republic of the Marshall Islands) shall provide technical and other assistance—
(A) without reimbursement, to continue the planting and agricultural maintenance program on Enewetak;
(B) without reimbursement, to continue the food programs of the Bikini, Rongelap, Utrik, and Enewetak people described in section 1(d) of Article II of the Subsidiary Agreement for the Implementation of Section 177 of the Compact and for continued waterborne transportation of agricultural products to Enewetak including operations and maintenance of the vessel used for such purposes. The President shall ensure the assistance provided under these programs reflects the changes in the population since the inception of such programs.
(3) Payments
(i) Rongelap
(1) Because Rongelap was directly affected by fallout from a 1954 United States thermonuclear test and because the Rongelap people remain unconvinced that it is safe to continue to live on Rongelap Island, it is the intent of Congress to take such steps (if any) as may be necessary to overcome the effects of such fallout on the habitability of Rongelap Island, and to restore Rongelap Island, if necessary, so that it can be safely inhabited. Accordingly, it is the expectation of the Congress that the Government of the Marshall Islands shall use such portion of the funds specified in Article II, section 1(e) of the subsidiary agreement for the implementation of section 177 of the Compact as are necessary for the purpose of contracting with a qualified scientist or group of scientists to review the data collected by the Department of Energy relating to radiation levels and other conditions on Rongelap Island resulting from the thermonuclear test. It is the expectation of the Congress that the Government of the Marshall Islands, after consultation with the people of Rongelap, shall select the party to review such data, and shall contract for such review and for submission of a report to the President of the United States and the Congress as to the results thereof.
(2) The purpose of the review referred to in paragraph (1) of this subsection shall be to establish whether the data cited in support of the conclusions as to the habitability of Rongelap Island, as set forth in the Department of Energy report entitled: “The Meaning of Radiation for Those Atolls in the Northern Part of the Marshall Islands That Were Surveyed in 1978”, dated November 1982, are adequate and whether such conclusions are fully supported by the data. If the party reviewing the data concludes that such conclusions as to habitability are fully supported by adequate data, the report to the President of the United States and the Congress shall so state. If the party reviewing the data concludes that the data are inadequate to support such conclusions as to habitability or that such conclusions as to habitability are not fully supported by the data, the Government of the Marshall Islands shall contract with an appropriate scientist or group of scientists to undertake a complete survey of radiation and other effects of the nuclear testing program relating to the habitability of Rongelap Island. Such sums as are necessary for such survey and report concerning the results thereof and as to steps needed to restore the habitability of Rongelap Island are authorized to be made available to the Government of the Marshall Islands.
(3) It is the intent of Congress that such steps (if any) as are necessary to restore the habitability of Rongelap Island and return the Rongelap people to their homeland will be taken by the United States in consultation with the Government of the Marshall Islands and, in accordance with its authority under the Constitution of the Marshall Islands, the Rongelap local government council.
(j) Four atoll health care program
(1) Services provided by the United States Public Health Service or any other United States agency pursuant to section 1(a) of Article II of the Agreement for the Implementation of Section 177 of the Compact (hereafter in this subsection referred to as the “Section 177 Agreement”) shall be only for services to the people of the Atolls of Bikini, Enewetak, Rongelap, and Utrik who were affected by the consequences of the United States nuclear testing program, pursuant to the program described in Public Law 95–134 and Public Law 96–205 and their descendants (and any other persons identified as having been so affected if such identification occurs in the manner described in such public laws). Nothing in this subsection shall be construed as prejudicial to the views or policies of the Government of the Marshall Islands as to the persons affected by the consequences of the United States nuclear testing program.
(2) At the end of the first year after the effective date of the Compact and at the end of each year thereafter, the providing agency or agencies shall return to the Government of the Marshall Islands any unexpended funds to be returned to the Fund Manager (as described in Article I of the Section 177 Agreement) to be covered into the Fund to be available for future use.
(3) The Fund Manager shall retain the funds returned by the Government of the Marshall Islands pursuant to paragraph (2) of this subsection, shall invest and manage such funds, and at the end of 15 years after the effective date of the Compact, shall make from the total amount so retained and the proceeds thereof annual disbursements sufficient to continue to make payments for the provision of health services as specified in paragraph (1) of this subsection to such extent as may be provided in contracts between the Government of the Marshall Islands and appropriate United States providers of such health services.
(k) Enjebi Community Trust FundNotwithstanding any other provision of law, the Secretary of the Treasury shall establish on the books of the Treasury of the United States a fund having the status specified in Article V of the subsidiary agreement for the implementation of Section 177 of the Compact, to be known as the “Enjebi Community Trust Fund” (hereafter in this subsection referred to as the “Fund”), and shall credit to the Fund the amount of $7,500,000. Such amount, which shall be ex gratia, shall be in addition to and not charged against any other funds provided for in the Compact and its subsidiary agreements, this joint resolution, or any other Act. Upon receipt by the President of the United States of the agreement described in this subsection, the Secretary of the Treasury, upon request of the Government of the Marshall Islands, shall transfer the Fund to the Government of the Marshall Islands, provided that the Government of the Marshall Islands agrees as follows:
(1) Enjebi trust agreement
(2) Monitor conditions
(3) Resettlement of EnjebiIn the event that the United States determines that the people of Enjebi can within 25 years of January 14, 1986, resettle Enjebi under the conditions set forth in paragraph (2) of this subsection, then upon such determination there shall be available to the people of Enjebi from the Fund such amounts as are necessary for the people of Enjebi to do the following, in accordance with a plan developed by the Enewetak Local Government Council and the people of Enjebi, and concurred with by the Government of the Marshall Islands to assure consistency with the government’s overall economic development plan:
(A) Establish a community on Enjebi Island for the use of the people of Enjebi.
(B) Replant Enjebi with appropriate food-bearing and other vegetation.
(4) Resettlement of other location
(5) Interest from Fund
(6) Disclaimer of liability
(l) Bikini Atoll cleanup
(1) Declaration of policy
(2) Cleanup funds
(3) Conditions of funding
(m) Agreement on audits
(1) General authority of GAO to audit
(A) The Comptroller General of the United States (and his duly authorized representatives) shall have the authority to audit—
(i) all grants, program assistance, and other assistance provided to the Government of the Marshall Islands under Articles I and II of Title Two of the Compact; and
(ii) any other assistance provided by the Government of the United States to the Government of the Marshall Islands.
Such authority shall include authority for the Comptroller General to conduct or cause to be conducted any of the audits provided for in section 233 of the Compact. The authority provided in this paragraph shall continue for at least three years after the last such grant has been made or assistance has been provided.
(B) The Comptroller General (and his duly authorized representatives) shall also have authority to review any audit conducted by or on behalf of the Government of the United States. In this connection, the Comptroller General shall have access to such personnel and to such records, documents, working papers, automated data and files, and other information relevant to such review.
(2) GAO access to records
(A) In carrying out paragraph (1), the Comptroller General (and his duly authorized representatives) shall have such access to the personnel and (without cost) to records, documents, working papers, automated data and files, and other information relevant to such audits. The Comptroller General may duplicate any such records, documents, working papers, automated data and files, or other information relevant to such audits.
(B) Such records, documents, working papers, automated data and files, and other information regarding each such grant or other assistance shall be maintained for at least three years after the date such grant or assistance was provided and in a manner that permits such grants, assistance, and payments to be accounted for distinct from any other funds of the Government of the Marshall Islands.
(3) Representative status for GAO representatives
(4) Annual financial statements
(5) “Audits” definedAs used in this subsection, the term “audits” includes financial, program, and management audits, including determining—
(A) whether the Government of the Marshall Islands has met the requirements set forth in the Compact, or any related agreement entered into under the Compact, regarding the purposes for which such grants and other assistance are to be used; and
(B) the propriety of the financial transactions of the Government of the Marshall Islands pursuant to such grants or assistance.
(6) Cooperation by Marshall Islands
(Pub. L. 99–239, title I, § 103, Jan. 14, 1986, 99 Stat. 1778; Pub. L. 100–446, title I, § 115, Sept. 27, 1988, 102 Stat. 1802; Pub. L. 102–247, title III, § 304, Feb. 24, 1992, 106 Stat. 39; Pub. L. 105–209, § 2, July 29, 1998, 112 Stat. 880.)
§ 1904. Interpretation of and United States policy regarding Compact of Free Association
(a) Human rights
(b) Immigration
(c) Nonalienation of lands
(d) Nuclear waste disposal
(e) Impact of Compact on U.S. areas
(1) Statement of congressional intent
(2) Annual reports and recommendations
(3) Other views
(4) Commitment of Congress to redress adverse consequences
(5) “United States territories and commonwealths” defined
(6) Impact costs
(f) Fisheries managementIn clarification of Title One, Article II, section 121(b)(1) of the Compact:
(1) Nothing in the Compact or this joint resolution shall be interpreted as recognition by the United States of any claim by the Federated States of Micronesia or by the Marshall Islands to jurisdiction or authority over highly migratory species of fish during the time such species of fish are found outside the territorial sea of the Federated States of Micronesia or the Marshall Islands.
(2) It is the understanding of Congress that none of the monies made available pursuant to the Compact or this joint resolution will be used by either the Federated States of Micronesia or the Marshall Islands for enforcement actions against any vessel of the United States on the basis of fishing by any such vessel for highly migratory species of fish outside the territorial sea of the Federated States of Micronesia or the Marshall Islands, respectively, in the absence of a licensing agreement.
(3) Appropriate United States officials shall apply the policies and provisions of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.) and the Fishermen’s Protective Act of 1967 (22 U.S.C. 1971 et seq.) with regard to any action taken by the Federated States of Micronesia or the Marshall Islands affecting any vessel of the United States engaged in fishing for highly migratory species of fish in waters outside the territorial seas of the Federated States of Micronesia or the Marshall Islands, respectively. For the purpose of applying the provisions of section 5 of the Fishermen’s Protective Act of 1967 (22 U.S.C. 1975), monies made available to either the Federated States of Micronesia or the Marshall Islands pursuant to the provisions of the Compact or this joint resolution shall be treated as “assistance to the government of such country under the Foreign Assistance Act of 1961” [22 U.S.C. 2151 et seq.]. For purposes of this Act only, certification by the President in accordance with such section 5 shall be accompanied by a report to Congress on the basis for such certification, and such certification shall have no effect if by law Congress so directs prior to the expiration of 60 days during which Congress is in continuous session following the date of such certification.
(4) For the purpose of paragraphs (1) and (3) of this subsection—
(A) The term “vessel of the United States” has the same meaning as provided in the first section of the Fishermen’s Protective Act of 1967 (22 U.S.C. 1971).
(B) The terms “fishing” and “highly migratory species” have the same meanings as provided in paragraphs (10) and (14),1
1 See References in Text note below.
respectively, of section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802(10) and (14)).
(5)
(A) It is the policy of the United States of America—
(i) to negotiate and conclude with the governments of the Central, Western, and South Pacific Ocean, including the Federated States of Micronesia and the Marshall Islands, a regional licensing agreement setting forth agreed terms of access for United States tuna vessels fishing in the region; and
(ii) that such an agreement should overcome existing jurisdictional differences and provide for a mutually beneficial relationship between the United States and the Pacific Island States that will promote the development of the tuna and other latent fisheries resources of the Central, Western, and South Pacific Ocean and the economic development of the region.
(B) At such time as an agreement referred to in subparagraph (A) is submitted to the Senate for advice and consent to ratification, the Secretary of State, after consultation with the Secretary of Commerce and other interested agencies and concerned governments, shall submit to the Congress a proposed long term regional fisheries development program which may include, but not be limited to—
(i) exploration for, and stock assessment of, tuna and other fish;
(ii) improvement of harvesting techniques;
(iii) gear development;
(iv) biological resource monitoring;
(v) education and training in the field of fisheries; and
(vi) regional and direct bilateral assistance in the field of fisheries.
(g) Foreign loans
(Pub. L. 99–239, title I, § 104, Jan. 14, 1986, 99 Stat. 1788; Pub. L. 104–208, div. A, title I, § 101(a) [title II, § 211(b)], Sept. 30, 1996, 110 Stat. 3009, 3009–41; Pub. L. 106–504, § 2, Nov. 13, 2000, 114 Stat. 2311.)
§ 1905. Supplemental provisions
(a) Domestic program requirements
(b) Relations with Federated States of Micronesia and Marshall Islands
(1) The United States representatives to the Federated States of Micronesia and the Republic of the Marshall Islands pursuant to Article V of title I of the Compact shall be appointed by the President with the advice and consent of the Senate, and shall be under the supervision of the Secretary of State, who shall have responsibility for government to government relations between the United States and the Government with respect to whom they are appointed, consistent with the authority of the Secretary of the Interior as set forth in this section.
(2) Except for programs or services provided by or through other federal agencies or officials to the Federated States of Micronesia or the Republic of the Marshall Islands, or for which residents thereof are eligible pursuant to the Compact or any other provision of this joint resolution, appropriations made pursuant to the Compact or any other provision of this joint resolution may be made only to the Secretary of the Interior. The Secretary of the Interior shall coordinate and monitor any programs or activities, including such activities for which funding is made directly to such other agencies, provided to the Federated States of Micronesia or the Republic of the Marshall Islands by agencies of the Government of the United States and related economic development planning pursuant to the Compact or pursuant to any other authorization except for the provisions of sections 161(e), 313, and 351 of the Compact and the authorization of the President to agree to an effective date pursuant to this resolution. Funds appropriated to the Secretary of the Interior pursuant to this paragraph shall not be allocated to other Departments or agencies, except that the Secretary of the Interior shall be able to reimburse Departments or agencies for purposes authorized by this joint resolution.
(3) All programs and services provided to the Federated States of Micronesia and the Republic of the Marshall Islands by Federal agencies may be provided only after consultation with and under the supervision of the Secretary of the Interior, and the head of each Federal agency is directed to cooperate with the Secretary of the Interior and to make such personnel and services available as the Secretary of the Interior may request.
(4) Any United States Government personnel assigned, on a temporary or permanent basis, to either the Federated States of Micronesia or the Marshall Islands shall, during the period of such assignment, be subject to the supervision of the United States representative to that area.
(5) The President is hereby authorized to appoint an Interagency Group on Freely Associated States’ Affairs to provide policy guidance to federal departments and agencies. Such interagency group shall include the Secretary of the Interior and the Secretary of State.
(c) Continuing Trust Territory authorizationThe authorization provided by the Act of June 30, 1954, as amended (68 Stat. 330) shall remain available after the effective date of the Compact with respect to the Federated States of Micronesia and the Marshall Islands for the following purposes:
(1) Prior to October 1, 1986, for any purpose authorized by the Compact or this joint resolution.
(2) Transition purposes, including but not limited to, completion of projects and fulfillment of commitments or obligations; termination of the Trust Territory Government and termination of the High Court; health and education as a result of exceptional circumstances; ex gratia contributions for the populations of Bikini, Enewetak, Rongelap, and Utrik; and technical assistance and training in financial management, program administration, and maintenance of infrastructure, except that, for purposes of an orderly reduction of United States programs and services in the Federated States of Micronesia, the Marshall Islands, and Palau, United States programs or services not specifically authorized by the Compact of Free Association or by other provisions of law may continue but, unless reimbursed by the respective freely associated state, not in excess of the following amounts:
(1) For fiscal year 1987, an amount not to exceed 75 per centum of the total amount appropriated for such programs for fiscal year 1986;
(2) For fiscal year 1988, an amount not to exceed 50 per centum of the total amount appropriated for such programs for fiscal year 1986;
(3) For fiscal year 1989, an amount not to exceed 25 per centum of the total amount appropriated for such programs for fiscal year 1986.
(d) Medical referral debts
(1) Federated States of Micronesia
(2) Marshall Islands
(3) Use of funds
(4) Authorization of appropriations
(e) Survivability
(f) Registration for agents of Governments of Federated States of Micronesia and Marshall Islands
(1) In general
(2) Exception
(3) Resident representative exemption
(g) Noncompliance sanctions
(1) Authority of PresidentThe President of the United States shall have no authority to suspend or withhold payments or assistance with respect to—
(A) section 177, 213, 216(a)(2), 216(a)(3), 221(b), or 223 of the Compact, or
(B) any agreements made pursuant to such sections of the Compact,
unless such suspension or withholding is imposed as a sanction due to noncompliance by the Government of the Federated States of Micronesia or the Government of the Marshall Islands (as the case may be) with the obligations and requirements of such sections of the Compact or such agreements.
(2) Actions incompatible with United States authority
(h) Continuing programs and laws
(1) Federated States of Micronesia and Marshall Islands
(A) the Legal Services Corporation;
(B) the Public Health Service; and
(C) the Farmers Home Administration (in the Marshall Islands and each of the four States of the Federated States of Micronesia: Provided, that in lieu of continuation of the program in the Federated States of Micronesia, the President may agree to transfer to the Government of the Federated States of Micronesia without cost, the portfolio of the Farmers Home Loan Administration applicable to the Federated States of Micronesia and provide such technical assistance in management of the portfolio as may be requested by the Federated States of Micronesia).
(2) Palau
(3) Section 219 determination
(4) Tort claims
(A) At such time as the Trusteeship Agreement ceases to apply to either the Federated States of Micronesia or the Marshall Islands, the provisions of Section 178 of the Compact regarding settlement and payment of tort claims shall apply to employees of any federal agency of the Government of the United States which provides any service or carries out any other function pursuant to or in furtherance of any provisions of the Compact or this Act, except for provisions of Title Three of the Compact and of the subsidiary agreements related to such Title, in such area to which such Agreement formerly applied. For purposes of this subparagraph (B),1
1 So in original.
persons providing such service or carrying out such function pursuant to a contract with a federal agency shall be deemed to be an employee of the contracting federal agency.
(B) For purposes of the Federal Tort Claims Act (28 U.S.C. 2671 et seq.), persons providing services to the people of the atolls of Bikini, Enewetak, Rongelap, and Utrik as described in Public Law 95–134 and Public Law 96–205 pursuant to a contract with a Department or agency of the federal government shall be deemed to be an employee of the contracting Department or agency working in the United States. This subparagraph (B) shall expire when the Trusteeship Agreement is terminated with respect to the Marshall Islands.
(5) Federal education grants
(5)2
2 So in original. Probably should be “(6)”.
PCB cleanup
(i) College of Micronesia; education programs
(1) College of Micronesia
(2) Federal education programsPursuant to section 224 of the Compact and upon the request of the affected Government, any Federal program providing financial assistance for education which, as of January 1, 1985, was providing financial assistance for education to the Federated States of Micronesia or the Marshall Islands or to any institution, agency, organization, or permanent resident thereof, including the College of Micronesia System, shall continue to provide such assistance to such institutions, agencies, organizations, and residents as follows:
(A) For the fiscal year in which the Compact becomes effective, not to exceed $13,000,000;
(B) For the fiscal year beginning after the end of the fiscal year in which the Compact becomes effective, not to exceed $8,700,000; and
(C) For the fiscal year immediately following the fiscal year described in subparagraph (B), not to exceed $4,300,000.
(3) Authorization of appropriations
(j) Trust Territory debts to U.S. Federal agencies
(k) Use of DOD medical facilities
(l) Technical assistance
(m) Prior Service Benefits Program
(n) Indefinite land use payments
(o) Communicable disease control program
(p) Trust funds
(q) Omitted
(r) User fees
(Pub. L. 99–239, title I, § 105, Jan. 14, 1986, 99 Stat. 1791; Pub. L. 99–396, § 20(a), Aug. 27, 1986, 100 Stat. 844; Pub. L. 99–658, title I, § 104(c), Nov. 14, 1986, 100 Stat. 3676; Pub. L. 100–369, § 9, July 18, 1988, 102 Stat. 837; Pub. L. 102–486, title XXVII, § 2704, Oct. 24, 1992, 106 Stat. 3120; Pub. L. 113–287, § 5(o)(1), Dec. 19, 2014, 128 Stat. 3272.)
§ 1906. Construction contract assistance
(a) Assistance to U.S. firms
In order to assist the Governments of the Federated States of Micronesia and of the Marshall Islands through private sector firms which may be awarded contracts for construction or major repair of capital infrastructure within the Federated States of Micronesia or the Republic of the Marshall Islands, the President shall consult with the Governments of the Federated States of Micronesia and the Marshall Islands with respect to any such contracts, and the President shall enter into agreements with such firms whereby such firms will, consistent with applicable requirements of such Governments—
(1) to the maximum extent possible, employ citizens of the Federated States of Micronesia and the Marshall Islands;
(2) to the extent that necessary skills are not possessed by citizens of the Federated States of Micronesia and the Marshall Islands, provide on the job training, with particular emphasis on the development of skills relating to operation of machinery and routine and preventative maintenance of machinery and other facilities; and
(3) provide specific training or other assistance in order to enable the Government to engage in long-term maintenance of infrastructure.
Assistance by such firms pursuant to this section may not exceed 20 percent of the amount of the contract and shall be made available only to such firms which meet the definition of United States firm under the nationality rule for suppliers of services of the Agency for International Development (hereafter in this section referred to as “United States firms”). There are authorized to be appropriated such sums as may be necessary for the purposes of this subsection.
(b) Authorization of appropriations
(Pub. L. 99–239, title I, § 106, Jan. 14, 1986, 99 Stat. 1797.)
§ 1907. Limitations
(a) Prohibition
(b) Termination
(Pub. L. 99–239, title I, § 107, Jan. 14, 1986, 99 Stat. 1797.)
§ 1908. Transitional immigration rules
(a) Citizen of Northern Mariana Islands
(b) Termination
(Pub. L. 99–239, title I, § 108, Jan. 14, 1986, 99 Stat. 1798.)
§ 1909. Timing

No payment may be made pursuant to the Compact nor under any provision of this joint resolution prior to October 1, 1985.

(Pub. L. 99–239, title I, § 109, Jan. 14, 1986, 99 Stat. 1798.)
§ 1910. Implementation of audit agreements
(a) Transmission of annual financial statement
(b) Annual audits by President
(1) The President shall cause an annual audit to be conducted of the annual financial statements described in sections 1902(c)(4) and 1903(m)(4) of this title. Such audit shall be conducted in accordance with the Generally Accepted Government Auditing Standards promulgated by the Comptroller General of the United States. Such audit shall be submitted to the Congress not later than 180 days after the end of the United States fiscal year.
(2) The President shall develop and implement procedures to carry out such audits. Such procedures shall include the matters described in sections 1902(c)(2) and 1903(m)(2) of this title.
(c) Authority of GAO
(Pub. L. 99–239, title I, § 110, Jan. 14, 1986, 99 Stat. 1798.)
§ 1911. Compensatory adjustments
(a) Additional programs and services
(b) Investment Development Funds
(1) In order to further close economic and commercial relations between the United States and the Federated States of Micronesia and the Marshall Islands, and in order to encourage the presence of the United States private sector in such areas, there are hereby created two Investment Development Funds, to be established and administered by the Federated States of Micronesia and the Marshall Islands respectively in consultation with the United States as follows:
(i) For the Investment Development Fund for the Federated States of Micronesia there is hereby authorized to be appropriated for fiscal 1986, $20 million, backed by the full faith and credit of the United States, of which $12 million shall be made available for obligation for the first full fiscal year after the effective date of the Compact, and of which $8 million shall be made available for obligation for the third full fiscal year after the effective date of the Compact.
(ii) For the Investment Development Fund for the Marshall Islands there is hereby authorized to be appropriated $10 million for fiscal 1986, backed by the full faith and credit of the United States, of which $6 million for the first full fiscal year after the effective date of the Compact, and of which $4 million shall be made available for obligation for the third full fiscal year after the effective date of the Compact.
(2) The amounts specified in this subsection shall be in addition to the sums and amounts specified in Articles I and III of Title Two of the Compact, and shall be deemed to be included in the sums and amounts referred to in section 236 of the Compact.
(c) Board of Advisors
(d) Further amounts
(Pub. L. 99–239, title I, § 111, Jan. 14, 1986, 99 Stat. 1799.)
§ 1912. Jurisdiction
(a) With respect to section 321 of the Compact of Free Association and its related agreements, the jurisdictional provisions set forth in subsection (b) of this section shall apply only to the citizens and nationals of the United States and aliens lawfully admitted to the United States for permanent residence who are in the Marshall Islands or the Federated States of Micronesia.
(b)
(1) The defense sites of the United States established in the Marshall Islands or the Federated States of Micronesia in accordance with the Compact of Free Association and its related agreements are within the special maritime and territorial jurisdiction of the United States as set forth in section 7, title 18.
(2) Any person referred to in subsection (a) of this section who within or upon such defense sites is guilty of any act or omission which, although not made punishable by any enactment of Congress, would be punishable if committed or omitted within the jurisdiction of the State of Hawaii by the laws thereof, in force at the time of such act or omission, shall be guilty of a like offense and subject to a like punishment.
(3) The United States District Court for the District of Hawaii shall have jurisdiction to try all criminal offenses against the United States, including the laws of the State of Hawaii made applicable to the defense sites in the Marshall Islands or the Federated States of Micronesia by virtue of paragraph (2) of this subsection, committed by any person referred to in subsection (a) of this section.
(4) The United States District Court for the District of Hawaii may appoint one or more magistrate judges for the defense sites in the Marshall Islands. Such Magistrate Judges shall have the power and the status of Magistrate Judges appointed pursuant to chapter 43, title 28, provided, however that such Magistrate Judges shall have the power to try persons accused of and sentence persons convicted of petty offenses, as defined in section 1(3),1
1 See References in Text note below.
title 18, including violations of regulations for the maintenance of peace, order, and health issued by the Commanding Officer on such defense sites, without being subject to the restrictions provided for in section 3401(b), title 18.
(Pub. L. 99–239, title II, § 202, Jan. 14, 1986, 99 Stat. 1835; Pub. L. 101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117.)