,,ib  ,union ,calendar ,no4 #hfj  #aaeth
 ,,congress  #b;d ,session  ,h4 ,r4     
#bjhe  ,report ,no4 #aae-ajci1 ,part ,i 
,,in ,,the ,,house ,,of                 
,,representatives  ,april #h1 #bjag ,mr4
 ,sablan 7for himself and ,ms4          
,bordallo7 introduced the following     
bill2 which was referred to the         
,committee on ,natural ,resources1 and  
in addition to the ,committee on        
,foreign ,affairs1 for a period to be   
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 
,november #bj1 #bjah ,reported from the 
,committee on ,natural ,resources       
,november #bj1 #bjah,referral to the    
,committee on ,foreign ,affairs extended
 for a period ending not later than     
,december #bh1 #bjah  ,december #bh1    
#bjah;,committee on ,foreign ,affairs   
discharged2 committed to the ,committee 
of the ,whole ,house on the ,state of   
the ,union and ordered to be printed  ,a

 ,,bill  ,to approve an agreement       
between the ,united ,states and the     
,republic of ,palau1 and for other      
purposes4  #a4 ,approval of the         
agreement between the ,united ,states   
and the ,republic of ,palau  7a7        
,definitions ,in this section3 7#a7     
,agreement ,the term ,agreement means   
the ,agreement and appendices signed by 
the ,united ,states and the ,republic of
 ,palau on ,september #c1 #bjaj4  7#b7  
,compact of free association ,the term  
,compact of ,free ,association means the
 ,compact of ,free ,association between 
the ,government of the ,united ,states  
of ,america and the ,government of      
,palau 7#dh ,u4,s4,c4 #aica note2       
,public ,law #ii-feh74  7b7 ,results of 
compact review  7#a7 ,in general ,title 
,i of ,public ,law #ii-feh 7#dh         
,u4,s4,c4 #aica et seq47 is amended by  
adding at the end the following3  #aje4 
,results of compact review  7a7 ,in     
general ,the ,agreement and appendices  
signed by the ,united ,states and the   

,republic of ,palau on ,september #c1   
#bjaj 7referred to in this section as   
the ,agreement71 in connection with     
section #dcb of the ,compact of ,free   
,association between the ,government of 
the ,united ,states of ,america and the 
,government of ,palau 7#dh ,u4,s4,c4    
#aica note2 ,public ,law #ii-feh7       
7referred to in this section as the     
,compact of ,free ,association71 are    
approved--  7#a7 except for the         
extension of ,article ,x of the         
,agreement ,regarding ,federal ,programs
 and ,services1 and ,concluded ,pursuant
 to ,article ,,ii of ,title ,,ii and    
section #bcb of the ,compact of ,free   
,association2 and  7#b7 subject to the  
provisions of this section4  7b7        
,withholding of funds ,if the ,republic 
of ,palau withdraws more than #i1jjj1jjj
 from the trust fund established under  
section #baa7;f7 of the ,compact of     
,free ,association in fiscal year #bjah1
 amounts payable under sections #a1     
#b7;a71 #c1 and #d7;a71 of the          

,agreement shall be withheld from the   
,republic of ,palau until the date on   
which the ,republic of ,palau reimburses
 the trust fund for the total amounts   
withdrawn that exceeded #i1jjj1jjj in   
that fiscal year1 except that funds to  
be provided under section #c of the     
,agreement may be released to replenish 
the #baa7;f7 ,fund if an arrangement had
 been made between the ,united ,states  
and the ,republic of ,palau to advance  
funds during such fiscal year from the  
#baa7;f7 ,fund for the purposes         
allowable under section #c of the       
,agreement4  7c7 ,funding for certain   
provisions under section #aje of compact
 of free association ,not later than #cj
 days after the date of the enactment of
 this section1 out of any funds in the  
,treasury not otherwise appropriated1   
the ,secretary of the ,treasury shall   
transfer to the ,secretary of the       
,interior such sums as are necessary for
 the ,secretary of the ,interior to     
implement sections #a1 #b7;a71 #c1      

#d7;a71 #e1 and #f of the ,agreement1   
which sums shall remain available until 
expended without any further            
appropriation4  7d7 ,authorizations of  
appropriations ,there are authorized to 
be appropriated-- 7#a7 to the ,secretary
 of the ,interior to subsidize postal   
services provided by the ,united ,states
 ,postal ,service to the ,republic of   
,palau1 the ,republic of the ,marshall  
,islands1 and the ,federated ,states of 
,micronesia1 #a1ejj1jjj for each of     
fiscal years #bjah through #bjbd1 to    
remain available until expended but may 
be available pursuant to this paragraph 
to the ,united ,states ,postal ,service 
only so long as domestic postage may be 
used for mail to ,palau1 the ,federated 
,states of ,micronesia1 and the         
,republic of the ,marshall ,islands2 and
  7#b7 to the head of each ,federal     
entity described in paragraphs 7#a71    
7#c71 and 7#d7 of section #bba7;a7 of   
the ,compact of ,free ,association      
7including the successor of each        

,federal entity7 to carry out the       
responsibilities of the ,federal entity 
under section #bba7;a7 of the ,compact  
of ,free ,association such sums as are  
necessary1 to remain available until    
expended4  4  7#b7 ,offset ,section #c  
of the ,act of ,june #cj1 #aied 7#fh    
,stat4 #ccj1 #hb ,stat4 #abac1 chapter  
#dbc71 is repealed4  7c7 ,payment       
schedule2 withholding of funds2 funding 
7#a7 ,compact ,section #baa7;f7 ,fund   
,section #a of the ,agreement shall be  
construed as though the section reads as
 follows3  #a4 ,compact ,section        
#baa7;f7 ,fund ,the ,government of the  
,united ,states shall contribute        
#cj1bej1jjj to the ,fund referred to in 
section #baa7;f7 of the ,compact in     
accordance with the following schedule3 
7#a7 #bb1jjj1jjj in fiscal year #bjah4  
7#b7 #b1jjj1jjj in each of fiscal years 
#bjai through #bjbb4  7#c7 #bej1jjj in  
fiscal year #bjbc4  4  7#b7             
,infrastructure maintenance fund        
,subsection 7a7 of section #b of the    

,agreement shall be construed as though 
the subsection reads as follows3  7a7   
,the ,government of the ,united ,states 
shall provide a grant of #af1jjj1jjj in 
fiscal year #bjah1 representing the     
amounts to have been provided by the    
,united ,states in fiscal years #bjaa   
through #bjag under section #b7;a7 of   
the ,agreement1 and a grant of          
#b1jjj1jjj annually from the beginning  
of fiscal year #bjai through fiscal year
 #bjbd to create a trust fund1 to be    
known as the ,infrastructure            
,maintenance ,fund1 to be used for the  
routine and periodic maintenance of     
major capital improvement projects      
financed by funds provided by the       
,united ,states4 ,the ,government of the
 ,republic of ,palau shall match the    
contributions made by the ,united       
,states by making contributions of      
#aej1jjj to the ,infrastructure         
,maintenance ,fund on a quarterly basis 
from the beginning of fiscal year #bjah 
through fiscal year #bjbd4              

,implementation of this subsection shall
 be carried out in accordance with the  
provisions of ,appendix ,a of this      
,agreement4  4  7#c7 ,fiscal            
consolidation fund ,section #c of the   
,agreement shall be construed as though 
the section reads as follows3  #c4      
,fiscal consolidation fund ,the         
,government of the ,united ,states shall
 provide the ,government of ,palau      
#aj1jjj1jjj in fiscal year #bjah for    
deposit in an interest bearing account  
to be used to reduce government arrears 
of ,palau4 ,implementation of this      
section shall be carried out in         
accordance with the provisions of       
,appendix ,b of this ,agreement4  4     
7#d7 ,direct economic assistance        
,subsection 7a7 of section #d of the    
,agreement shall be construed as though 
the subsection reads as follows3  7a7   
,in addition to the economic assistance 
of #ac1adg1jjj provided to the          
,government of ,palau by the ,government
 of the ,united ,states in each of      

fiscal years #bjaj1 #bjaa1 #bjab1 #bjac1
 #bjad1 #bjae1 #bjaf1 and #bjag1 and    
unless otherwise specified in this      
,agreement or in an ,appendix of this   
,agreement1 the ,government of the      
,united ,states shall provide the       
,government of ,palau #bg1bej1jjj in    
economic assistance as follows3  7#a7   
#g1bej1jjj in fiscal year #bjah4  7#b7  
#f1jjj1jjj in fiscal year #bjai4  7#c7  
#e1jjj1jjj in fiscal year #bjbj4  7#d7  
#d1jjj1jjj in fiscal year #bjba4  7#e7  
#c1jjj1jjj in fiscal year #bjbb4  7#f7  
#b1jjj1jjj in fiscal year #bjbc4  ,the  
funds provided in any fiscal year under 
this subsection for economic assistance 
shall be provided in #d quarterly       
payments 7#cj percent in the first      
quarter1 #cj percent in the second      
quarter1 #bj percent in the third       
quarter1 and #bj percent in the fourth  
quarter7 unless otherwise specified in  
this ,agreement or in an ,appendix of   
this ,agreement4 4  7#e7 ,infrastructure
 projects ,section #e of the ,agreement 

shall be construed as though the section
 reads as follows3  #e4 ,infrastructure 
projects ,the ,government of the ,united
 ,states shall provide in fiscal year   
#bjah1 #dj1jjj1jjj to the ,government of
 ,palau towards one or more mutually    
agreed infrastructure projects in       
accordance with the provisions of       
,appendix ,c to this ,agreement4  4  7d7
 ,continuing programs and laws ,section 
#aje7;f77#a77;,b77ix7 of the ,compact of
 ,free ,association ,amendments ,act of 
#bjjc 7#dh ,u4,s4,c4                    
#aibld7f77#a77;,b77ix77 is amended by   
striking #bjji and inserting #bjbd4  7e7
 ,audit2 full faith and credit2         
inflation adjustment ,the ,secretary of 
the ,interior shall fund the amounts    
necessary to conduct the audits required
 by section #f and ,appendix ,d of the  
,agreement4 ,section #bcf of the        
,compact applies to the commitments of  
the ,united ,states under sections #a1  
#b7;a71 #c1 #d7;a71 and #e of the       
,agreement1 and to the amounts necessary

 to conduct such audits1 to the same    
extent as section #bcf applies to the   
,compact4 ,section #bae of the ,compact 
shall be applied to such commitments and
 amounts by substituting #bjaj for      
#aiha4  7f7 ,passport requirement       
,section #ada of ,article ,,iv of ,title
 ,one of the ,compact of ,free          
,association shall be construed and     
applied as if it read as follows3  #ada4
 ,passport requirement  7a7 ,in general 
,an individual in one of the following  
categories may be admitted to lawfully  
engage in occupations and establish     
residence as a nonimmigrant in the      
,united ,states and its territories and 
possessions without regard to paragraphs
 7#e7 or 7#g77;,b77i77,,ii7 of section  
#bab7;a7 of the ,immigration and        
,nationality ,act 7#h ,u4,s4,c4         
#aahb7;a77#e7 or 7a77#g77;,b77i77,,ii771
 if the passport presented to satisfy   
section #bab7;a77#g77;,b77i77,i7 of such
 ,act is a valid1 unexpired1            
machine-readable passport that satisfies

 the internationally accepted standard  
for machine readability3  7#a7 ,an      
individual who1 on ,september #cj1      
#aiid1 was a citizen of the ,trust      
,territory of the ,pacific ,islands1 as 
defined in title #ec of the ,trust      
,territory ,code in force on ,january   
#a1 #aigi1 and has become and remains a 
citizen of ,palau4  7#b7 ,an individual 
who acquires the citizenship of ,palau1 
at birth1 on or after the effective date
 of the ,constitution of ,palau4  7#c7  
,a naturalized citizen of ,palau1 who   
has been an actual resident of ,palau   
for not less than five years after      
attaining such naturalization and who   
holds a certificate of actual residence4
  7b7 ,employment ,an individual in one 
of the categories in paragraphs 7#a7    
through 7#c7 of subsection 7a7 shall be 
considered to have the permission of the
 ,secretary of ,homeland ,security of   
the ,united ,states to accept employment
 in the ,united ,states4  7c7 ,habitual 
residence ,the right of an individual in

 one of the categories in paragraphs    
7#a7 through 7#c7 of subsection 7a7 to  
establish habitual residence in a       
territory or possession of the ,united  
,states may be subjected to             
non-discriminatory limitations provided 
for--  7#a7 in statutes or regulations  
of the ,united ,states2 and  7#b7 in    
those statutes or regulations of the    
territory or possession concerned which 
are authorized by the laws of the       
,united ,states4  7d7 ,clarification    
,subsection 7a7-- 7#a7 does not confer  
on a citizen of ,palau the right to     
establish the residence necessary for   
naturalization under the ,immigration   
and ,nationality ,act1 or to petition   
for benefits for alien relatives under  
that ,act2 and  7#b7 shall not prevent a
 citizen of ,palau from otherwise       
acquiring such rights or lawful         
permanent resident alien status in the  
,united ,states4  4  ,december #bh1     
#bjah ,committee on ,foreign ,affairs   
discharged2 committed to the ,committee 

of the ,whole ,house on the ,state of   
the ,union and ordered to be printed