[House Report 105-38]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-38
_______________________________________________________________________
AMERICAN SAMOA DEVELOPMENT ACT OF 1997
_______
March 20, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Young of Alaska, from the Committee on Resources, submitted the
following
R E P O R T
[To accompany H.R. 757]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 757) to develop the economy of Samoa, having considered
the same, report favorably thereon with an amendment and
recommend that the bill as amended do pass.
The amendment (stated in terms of the page and line number
of the introduced bill) is as follows:
On page 2, line 11, strike ``shall'' and insert ``may''.
PURPOSE OF THE BILL
The purpose of H.R. 757 is to develop the economy of Samoa.
BACKGROUND AND NEED FOR LEGISLATION
American Samoa is an unorganized, unincorporated territory
of the United States. The five easternmost islands of the
Samoan archipelago and the southernmost island of the Tokelau
chain constitute what was previously named Eastern Samoa and is
today called American Samoa. Some 55,000 people reside in the
islands, predominantly all Samoans, including many relatives
from the western Samoan islands of the separate sovereign
nation of Western Samoa.
The United States Congress has plenary authority over all
possessions, which includes the territory of American Samoa,
pursuant to the ``territorial clause'' of the U.S.
Constitution, Article IV, Section 3, Clause 2. In 1929,
Congress delegated this authority for the islands of eastern
Samoa to the President of the United States, who as Commander-
in-Chief, had administered the easternmost islands of the Samoa
archipelago through a continuous Naval presence since 1900.
United States Naval contact with Samoa began as early as 1839.
While the President initially delegated this authority to the
Secretary of the Navy, in 1951 the Secretary of the Interior
assumed responsibility for the islands.
The existing Secretarial Order provides for self-governance
of American Samoa under a republican form of government
pursuant to a locally-adopted constitution. However, unlike the
local constitutional governments of the United States
territories of Puerto Rico and the Northern Mariana Islands,
federal law requires Congressional approval of any changes to
the American Samoa Constitution. In 1977 the voters of American
Samoa began to elect the Governor in place of a Presidentially-
appointed one. Since 1981, American Samoa has been represented
in Congress by a delegate in the House of Representatives.
American Samoa's economy is driven mainly by two tuna
canneries, one garment manufacturing plant and the local
government. The two tuna canning plants have provided stable
employment for the past 30 years. However, there is increasing
concern in American Samoa that businesses operating in the
territory will no longer be competitive with other countries
which have lower wages, fewer environmental restrictions and a
better geographic position. Such economic concerns are largely
based on recent U.S. and international changes in trade and tax
policies, principally the reduction in tariffs under North
American Free Trade Agreement and the General Agreement on
Tariffs and Trade, and the repeal of the possessions tax credit
(Section 936 of the Internal Revenue Code), which are
accentuated given that American Samoa is outside of the United
States customs territory. The tuna operations employ one-third
of the labor force, and with derivative businesses account for
over one-half of the economic activity in the territory.
The world economy is rapidly changing and American Samoa
does not have the technical expertise to develop a
comprehensive approach to guide its economy through this period
of transition. H.R. 757 would establish a short-term, unpaid
Presidential commission to temporarily bring together the
expertise of individuals experienced in tax and trade policy
and economicdevelopment who would analyze the territory's
current economic condition and provide recommendations to Congress and
the leaders in Samoa.
The goal of H.R. 757 is for the private-public Commission
to formulate timely and effective fiscal, trade, and economic
models to be used to increase the diversity and size of the
Samoan economy. Recommendations of the Commission for private
sector led development in the territory require private sector
input, while considering Samoa's unique historical and cultural
characteristics, geographical location, infrastructure, natural
resources of the land and the surrounding oceans, and the
political, social, and legal relations with nearby Pacific
islands.
The Commission will examine the benefits of including
American Samoa in the United States customs territory, and
thereby in the existing North American Free Trade Agreement,
which only includes the U.S. territory of Puerto Rico. In
addition, the Commission will examine the benefits of including
American Samoa in any future Asia-Pacific free trade agreement.
As part of the examination of American Samoa as part of
existing and prospective free trade agreements, the Commission
will focus on possible trade and economic models in which
American Samoa is the focal point of joint economic activities
with adjacent island areas: Western Samoa, Tonga, Niue, the
Cook Islands and Tokelau.
The Commission will be comprised of six members appointed
by the President. Three of the Members shall be from
nominations from the Governor of American Samoa and the
Secretary of the Interior. Members of the Commission will serve
without compensation. While the American Samoa Development Act
commission is non-paid, funding for any logistical and
administrative support by the Department of the Interior comes
from ongoing territorial technical assistance. There is no
requirement to reimburse members of the Commission for travel
and other expenses.
A report with recommendations of the Commission are to be
submitted to the President and the Congressional committees of
jurisdiction no later than June 30, 1999. The Commission
terminates three months after the transmission of the report
and recommendations.
The Commission provided for in H.R. 757 is similar to the
provision which was the subject of a Committee on Resources
hearing and became Section 8 of H.R. 1332, which passed the
House in the 104th Congress by a vote of 398 to 5. The Senate
adjourned before acting on the legislation in the 104th
Congress. In addition, H.R. 757 is nearly identical to Section
11 of S. 210 of the current Congress. The Senate Committee on
Energy and Natural Resources held a hearing on S. 210 on
February 6, 1997, where the Administration testified in support
of the goals of the legislation but preferred they be
accomplished at the discretion of the Secretary of the Interior
under existing authority, instead of being directed in law by
Congress.
committee action
H.R. 757 was introduced on February 13, 1997, by
Congressman Eni F.H. Faleomavaega (D-AS). The bill was referred
to the Committee on Resources. On March 12, 1997, the Full
Resources Committee met to consider H.R. 757. Congressman
Faleomavaega offered a technical amendment regarding the
authorization for Members of the Commission to be reimbursed
for expenses incurred related to their work on the Commission
was changed from ``shall'' to ``may'' be reimbursed for travel,
subsistence and other necessary expenses incurred by them in
performance of their duties of the Commission. The amendment
was adopted by voice vote. The bill, as amended, was then
ordered favorably reported to the House of Representatives by
voice vote.
committee oversight findings and recommendations
With respect to the requirements of clause 2(l)(3) of rule
XI of the Rules of the House of Representatives, and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee on Resources' oversight findings and
recommendations are reflected in the body of this report.
federal advisory committee statement
The functions of the proposed advisory committee authorized
in H.R. 757 are not currently being nor could they be performed
by one or more agencies, an advisory committee already in
existence or by enlarging the mandate of an existing advisory
committee.
constitutional authority statement
Article I, section 8, and Article IV, section 3 of the
Constitution of the United States grants Congress the authority
to enact H.R. 757.
cost of the legislation
Clause 7(a) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs which would be incurred in carrying out
H.R. 757. However, clause 7(d) of that rule provides that this
requirement does not apply when the Committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 403 of the Congressional Budget Act of 1974.
compliance with house rule xi
1. With respect to the requirement of clause 2(l)(3)(B) of
rule XI of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, H.R.
757 does not contain any new budget authority, spending
authority, credit authority, or an increase or decrease in
revenues or tax expenditures.
2. With respect to the requirement of clause 2(l)(3)(D) of
rule XI of the Rules of the House of Representatives, the
Committee has received no report of oversight findings and
recommendations from the Committee on Government Reform and
Oversight on the subject of H.R. 757.
3. With respect to the requirement of clause 2(l)(3)(C) of
rule XI of the Rules of the House of Representatives and
section 403 of the Congressional Budget Act of 1974, the
Committee has received the following cost estimate for H.R. 757
from the Director of the Congressional Budget Office.
congressional budget office cost estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 19, 1997.
Hon. Don Young,
Chairman, Committee on Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 757, the American
Samoa Development Act of 1997.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kristen
Layman.
Sincerely,
June E. O'Neill, Director.
Enclosure.
H.R. 757--American Samoa Development Act of 1997
CBO estimates that implementing H.R. 757 would cost the
federal government $600,000 over fiscal years 1997 through
1999, assuming that the amounts authorized by the bill are made
available. H.R. 757 would not affect direct spending or
receipts; therefore, pay-as-you-go procedures would not apply.
This bill contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act of 1995
and would not have a significant impact on the budgets of
state, local, or tribal governments.
H.R. 757 would create a six-member commission to make
recommendations to the President and the Congress on policies
necessary to provide a secure local economy in American Samoa
through 2020. The bill would require the commission to submit a
report to the President, the Senate Committee on Energy and
Natural Resources, and the House Committee on Resources no
later than June 30, 1999. The report would include the
recommendations of the commission, an analysis of the
capability of American Samoa to meet projected needs,
projections of the need for direct or indirect federal
assistance for operations or infrastructure, and a historical
overview of American Samoa and its relationship to the United
States. The commission would terminate three months after the
submission of the report.
In addition to the direct costs of the commission at the
authorized level of $600,000, implementing H.R. 757 could
result in further costs if other federal agencies detail
employees to the commission. Any such additional costs are not
likely to be significant.
The CBO staff contact for this estimate is Kristen Layman.
This estimate was approved by Paul N. Van de Water, Assistant
Director for Budget Analysis.
compliance with public law 104-4
H.R. 757 contains no unfunded mandates.
changes in existing law
If enacted, H.R. 757 would make no changes in existing law.