Palau Compact of Free Association Implementation Act

(Measure passed Senate, amended)

Palau Compact of Free Association Implementation Act - Authorizes the entry into force of the Compact of Free Association between the United States and Palau (the Compact), subject to its approval by referendum.

Directs the President to negotiate: (1) an agreement with the Government of Palau to provide assistance for maintaining offices of public auditor and special prosecutor; (2) an agreement regarding responses to an audit by the Comptroller General of the United States or the Secretary of the Interior; and (3) an agreement providing for the Palau Government to provide current information regarding its national development plan under the Compact.

Directs the National Drug Policy Board to develop a plan for an anti-drug program in Palau. Requires the President to negotiate an agreement with Palau to implement such plan.

Prohibits using funds appropriated for assistance to Palau to satisfy any obligation or expense incurred by Palau prior to November 14, 1986, with respect to contracts or debts related to any electrical generating plant or related facilities which have not been specifically authorized by the Congress in advance, with exceptions.

Directs the Secretary to: (1) provide assistance for the development and promulgation of regulations regarding expenditures, upon Palau's request; (2) provide such sums as may be necessary for a further referendum on the Compact or other costs of approval; and (3) submit a report on the range and cost of options for upgrading the Koror hospital. States that the United States will consider requests for additional financial assistance for medical facility construction based on such report.

Directs the chief officer of any agency conducting annual audits of assistance provided to the Federated States of Micronesia and the Marshall Islands to certify such audits.

Declares that the Compact does not restrict the President from requesting additional funding or consenting to an extension concerning the use by the United States of privately owned lands in Palau as defense sites.

Directs the Secretary to submit a report on the condition of the Palau prison. States that the United States will consider requests for additional financial assistance to meet the need for prison construction based on such report.

Directs the Secretary to station at least one professional staff person in each of the offices of the U.S. in Palau, Micronesia, and the Marshall Islands to provide Federal program coordination and assistance.

Authorizes appropriations.

Approves specified agreements between the United States and the Marshall Islands, Micronesia, and Palau.

Provides for continuing availability of unobligated balances of funds provided to Palau.

Amends the Act approving the Compact to provide that the authorizations for transition purposes shall decline over the first through third fiscal years after the Compact's effective date (under current law, FY 1987 through 1989).

Authorizes the Ninth Judicial Circuit of the United States to provide assistance to the courts of the freely associated States (Micronesia, the Marshall Islands, and Palau). Permits the Chief Justice of the United States or the chief judge of the Ninth Judicial Circuit to authorize any circuit judge of, or district judge within, the Ninth Circuit to serve temporarily as a judge of any court of a freely associated State.

Authorizes the President to negotiate agreements which provide that: (1) the United States shall provide for the distribution of controlled substances in the freely associated states under the Controlled Substances Act; or (2) the freely associated states shall be eligible for U.S. exports of narcotic drugs upon establishing and maintaining a system to report annual estimates of narcotic need to the International Control Board and imposing controls on such drugs consistent with the Single Convention on Narcotic Drugs, 1961.

Designates the Northern Marianas College as a depository to receive Government publications and directs the Superintendent of Documents to supply to the College one copy of each such publication.

Waives the requirement for local matching funds in order to have a Federal program or project apply to, or take place in, the Insular Areas.

Amends the Revised Organic Act of the Virgin Islands to repeal the requirements that the District Court of the Virgin Islands for the Division of Saint Croix be held in Christiansted and for the Division of Saint Thomas and Saint John at Charlotte Amalie.

Increases to 50 percent (currently, 30 percent) of the proceeds from the sale of certain lands transferred from the Navy to Guam the amount Guam may use for port development and not pay to the Federal Government.

Authorizes such sums as may be necessary for the design and construction of the Nanpil River hydropower diversion project in the Federated States of Micronesia.