State of the Insular Areas Report Act

Title I: - State of the Insular Areas Report Act - Directs the President to report annually to the Congress on the state of the insular areas. Defines "insular areas" to include Puerto Rico, Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any area not within the boundaries of the several States over which the United States claims or exercises sovereignty.

Title II: - Provides for the renovation, maintenance, and operation of the Guam Memorial Hospital and for the construction, maintenance, and operation of a health care facility in the northern part of Guam.

Authorizes appropriations for grants to the Virgin Islands for improvements in the generation and distribution of water and power and for construction of two juvenile pretrial detention facilities.

Amends the Federal Water Pollution Control Act to limit the amount of Federal funds for FY 1982 through 1985 that may be used for grants for water treatment works in Puerto Rico.