Title 7. AGENCIES AND GOVERNMENT FINANCED ENTERPRISES
Part I. Agencies
Chapter 1. Provisions of General Applicability to
Agencies
Section 7.101. Agencies: general. Agencies are Government instrumentalities established by
law with operational and decisional independence within limits set by law.
Section 7.102. Agencies; enumeration. The agencies are:
(1) The Broadcast
Authority
(2) The Election
Commission
(3) The Development
Review Commission
(4) The Port
Authority
(5) The Land
Commission (repealed effective October 1, 2001 by S.L.
7-126. The law refers to (4) in error.)
(6) The Parole Board
(7) The Sports
Council
(8) The Scholarship
Board
(9) The Utility
Authority
(10) The Visitors
Bureau
Background
Amended by State Laws 4-117,
5-56, 5-68, 6-1, 6-158, 7-1, 7-62 and 7-91.
Note: State Law 7-62 included the Executive Service Appeals Board as
Subsection (4); that agency was earlier repealed by State Law 6-156 and is,
therefore, not included in this Code.
Section 7.103. Appointment process. Unless otherwise provided by law, a member of an agency
governing body takes office upon appointment by the Governor following the
Legislature's consent by resolution to his nomination by the Governor. Upon
nominating a member to a governing body the Governor states the vacancy which
is the subject of the nomination. If the Legislature by resolution declines to
consent to a nomination or if the Legislature on a vote fails to adopt a
resolution confirming a nominee, the Governor submits a replacement nominee to
the Legislature within 30 days. The Governor does not resubmit the name of a
nominee who has failed to be confirmed for the same position during the term of
that Legislature.
Background
Amended by State Law 4-46.
Section 7.104. Agency procedural rules. By January 1, 1986 the Attorney General prepares and
provides a uniform simplified version of Robert's Rules of Order, Revised, by
which an agency governing body conducts a meeting unless by unanimous vote of
members present a governing body waives use of the rules for a meeting. Until
the Attorney General provides the version a governing body proceeds by rules of
its own choosing.
Section 7.105. Vacancy. A vacancy occurs in a membership in an agency governing
body by the member's (1) submission of a written resignation to the body's
presiding officer and to the Governor; (2) death; (3) incapacitating illness;
(4) absence from three consecutive governing body meetings; (5) continuous
absence from the State for a period exceeding six months; or (6) removal by the
Legislature for malfeasance in the office. The process for filling a vacancy is
pursuant to Section 7.103. The Governor promptly gives public notice of a vacancy.
Section 7.106. Officers. An agency governing body elects a chairman and
vice-chairman by majority vote of the membership. If the chairman and
vice-chairman are not in attendance at a meeting the membership chooses a
chairman pro tempore.
Section 7.107. Quorum. A quorum of an agency governing body is a majority of
memberships, including ex-officio memberships.
Section 7.108. Implied agency powers. Agency powers include a power reasonably necessary to the
performance of a power provided by law.
Section 7.109. Inquiry. An agency has the power and duty to consider a relevant
matter brought to its attention and to make a responsive inquiry, if found
appropriate.
Section 7.110. Body meetings. An agency governing body meets upon call of the chairman or
his lawful surrogate. A majority of the body may convene a meeting following
its petition to the chairman for a meeting and his failure to call the meeting
as petitioned.
Section 7.111. Repealed by State Law 6-1.
Section 7.112. Holding over. Notwithstanding any
other law, a member of an agency governing body holds office for no more than 3
months beyond his term until a successor takes office. This Section applies to all members of
agency governing bodies and state-appointed members of the government financed
enterprises listed in Part II of this Title.
Amended by State Law 7-72.
Section 7.113. Compensation of governing bodies. A member of an agency governing body receives compensation
in accordance with an appropriation for that purpose, if any.
Section 7.114. Repealed by State Law 7-1.
Section 7.115. Retirement: Benefits. Unless otherwise
provided by law, an employee of an agency, other than those appointed by the
Governor pursuant to this Chapter, is not older than sixty years of age.
Subject to appropriation, an employee who has worked eighteen quarters for the
Government and has retired from said employment after reaching fifty-five years
of age may be eligible for pension benefits until he reaches sixty years of
age. The Governor transmits to the Legislature no later than September 1 of
each year a bill to appropriate the estimated amount of funds to be needed for
the upcoming fiscal year, using for his estimate the rate of monthly benefits available
to Social Security retirement beneficiaries.
Background
Added by State Law 5-155.
Chapter 2. The
Broadcast Authority
Section 7.201. The Broadcast Authority. The Broadcast Authority has the power and duty to:
(1) broadcast regular radio programming pursuant to law.
Cross-reference:
For delayed effect see Section
1.304(1).
Section 7.202. Authority Board. The Authority is directed by a board of five members who
serve terms of two years. Until appointment of a majority of the board the
Authority's affairs are managed by its highest ranking staff person.
Section 7.203. Authority policy. The board establishes, and supervises adherence to,
Authority policy. A final Authority decision concerning programming is subject
to review by the board.
Section 7.204. Broadcast
standards.
(1) Subject to reasonable
regulation by the board, Authority policy and activities conform to the
following broadcast standards:
(a) reasonable access for the expression of opinion;
(b) the opportunity to reply to criticism;
(c) conformity to law;
(d) respect for community standards of decency;
(e) independent, fair, and balanced reporting of the news.
(2) Authority policy allows for the presentation of a
commercial broadcast message for a fee.
Section 7.205. Access.
(1) To ensure access the Authority adheres to the following:
(a) A candidate for elective office has free access to the
use of broadcast facilities. A program submitted for broadcasting by a
candidate is broadcast as submitted without preview or censorship or follow-up
commentary by the Authority. A program submitted by a candidate may relate to
any issue of public interest. Upon conclusion of program by a candidate, there
is an announcement disclaiming Government and Authority responsibility for the
views expressed.
(b) The Authority gives an individual or representative of
an identifiable group who holds views on an issue of public importance contrary
to broadcasted views a reasonable opportunity to present his view.
(c) The Authority gives an individual or identifiable group
which is the subject of criticism, argument or debate during a broadcast an
opportunity to respond to the criticism, argument or debate. The responding
broadcast is of a duration, and is broadcast at hours, calculated to:
(1) reach the same audience as likely heard the original
broadcast; and
(2) achieve a timely and adequate response or rebuttal.
(2) In giving timely and equal access to an entitled person,
the Authority may decline to interrupt regularly scheduled broadcast
programming.
Section 7.206. Authority staff. The Authority has staff positions determined by the board
and funded by law, including an Authority Manager nominated and appointed by
the board with the advice and consent of the Legislature. The Authority Manager
is the highest ranking staff person and is responsible for the operation of the
Authority, subject to board control.
Section 7.207. Report. Eighteen months following the Code's taking effect the
Governor reports to the Legislature the Executive's then current broadcasting
activities and the feasibility and desirability of a transfer of broadcasting
functions to the Authority.
Chapter 3. The Election Commission
Section 7.301. The Election Commission. The Election Commission consists of sixteen members who
serve terms of five years. Each municipality is the place of residence of four
members. Upon a member's filing a nominating petition for public office his
membership becomes vacant.
Section 7.302. Powers and
duties. The Commission has the power and duty to:
(1) supervise a State election in conformity with Title 3.
Chapter 4. The
Development Review Commission
Section 7.401. The Development
Review Commission.
(1) The Development Review Commission consists of five
members who serve terms of four years. Two of the members initially serve terms
of two years and three of the members initially serve terms of four years.
Thereafter, all members serve terms of four years.
(2) Members of the Commission receive compensation of $25.00
per day while engaged in the performance of the duties of the Commission.
Members are entitled to receive reasonable travel costs and per diem at
standard Kosrae State Government rates when engaged in the performance of the
duties of the Commission.
(3) The Commission meets when a proposal is submitted for
its review or as often as is otherwise necessary to carry out its business
under this Chapter. A meeting is held as determined by the Commission, or the
call of the Chairman or the written request of any two members. All meetings
are open to the public, and reasonable advance public notice of the time and
place of a meeting is posted in public places and is announced on the radio
throughout the State.
(4) The Commission provides for the keeping of records of
its actions. These records are open to the public for inspection.
Background
Amended by State Law 5-56.
Section 7.402. Powers and duties. The Commission has the power and duty to:
(1) Protect the environment, human health, welfare and
safety, to abate, control and prevent pollution or contamination of air, land
and water in accordance with this chapter and commission regulations by
balancing the needs of economic and social development with those of
environmental quality and adopting regulations and pursuing policies which, to
the maximum extent possible, ensure that economic and social development is
environmentally sustainable;
(2) adopt and enforce regulations to effect the purposes of
this chapter;
(3) adopt and provide for the continuing administration of a
development permit system, including the requirement of development proposals,
for the construction, expansion or alteration of a development, including
alteration of land or marine space, that may significantly affect, directly or
indirectly, natural or historic resources, significantly alter the landscape or
be incompatible with surrounding air, land or water uses.
(4) adopt and enforce primary and secondary drinking water
regulations, including the establishment of an underground injection control
program;
(5) adopt and provide for the continuing administration of a
program for the abatement or prevention of the contamination of drinking water
systems;
(6) establish standards for classifying air, land and water
in accordance with present and future uses;
(7) adopt and implement plans for the certification of
applicators of pesticides, for the issuance of experimental use permits for
pesticides and a plan to meet special local needs;
(8) establish and provide for the continuing administration
of a permit system for the discharge of a pollutant in the air, land or water;
(9) collect information and establish record keeping,
monitoring and reporting requirements necessary and appropriate to carry out
the purposes of this chapter;
(10) enter public or private property to inspect or take
samples in performance of its duties;
(11) issue a cease and desist order to a person found to be
in violation of law or regulation pertaining to the environment;
(12) order a polluting party to abate the causing of, and to
remove, polluting matter;
(13) devise land use plans and, no later than two years
after the effective date of this Chapter, propose legislation to the
Legislature and the Governor for the regulation of the use of land;
(14) act as an agent of the
Environmental Protection Board of the Federated States of Micronesia pursuant
to written agreement approved by the Governor; and
(15) preserve the State’s forests and wildlife and regulate activities
that affect them.
Background
Amended by State Law 5-56 and
State Law 7-1.
Cross-reference:
Generally for
offense see Section 13.530.
Section 7.403. Repealed by State Law 7-1.
Background
Added by State Law 5-56. Repealed by State Law 7-1.
Section 7.404. Commission
staff. The Commission selects a full-time program director who
administers the functions of the Commission and has such duties and
responsibilities as may be delegated to him by the Commission. The program
director may be assisted in his duties by supporting staff as the Commission
deems necessary.
Background
Added by State Law 5-56.
Section 7.405. Environmental impact studies. The Commission requires that:
(1) All persons include in their development proposals an environmental
impact assessment study in accordance with regulations established by the
Commission.
(2) All persons submit an environmental impact statement to
the Commission according to Commission specifications, prior to taking any
action significantly affecting the quality of the human environment.
Background
Added by State Law 5-56.
Chapter 5. The Visitors Bureau
Background
Former Chapter 5, establishing
the Executive Service Appeals Board, was repealed by State Law 6-158. State Law 7-62 added the Kosrae Visitors
Bureau as Chapter 14. State Law 7-95
renumbered those provisions under Chapter 5 in this Code.
State Law 7-91 also enacted a
Chapter 5 establishing the Kosrae Port Authority, which is reproduced
immediately following.
Section 7.501. Bureau
established. There is hereby
established an Agency under this Chapter which shall be known as “The Kosrae
Visitors Bureau” referred to in this Chapter as the “Bureau.”
Background
Added by State Law 7-62 as Section 7.1401. Renumbered by State Law 7-95.
Section 7.502. Responsibilities,
duties and powers of the Bureau.
The Bureau is vested with the following responsibilities, duties and
powers:
(1) to promote and
develop Kosrae’s tourism industry in such a manner as it deems appropriate,
including providing and disseminating information and materials promoting
Kosrae as a visitor destination;
(2) to promote local
interest and participation at all levels of the visitor industry;
(3) to assist, when
requested, both government and private entities in the development,
implementation and promotion of programs to further education, training,
employment assistance and entrepreneurial development;
(4) to promote local
cultural activities for residents;
(5) to promote items
of local manufacture;
(6) to promote and assist
in the development of adequate tourist facilities and attractions;
(7) to work with
other entities to collect, analyze, evaluate and regularly publish
comprehensive data on the visitor industry;
(8) to adopt, alter
and use an official seal;
(9) to adopt and
enforce regulations to effect the purposes of this Chapter; and
(10) to engage in
all lawful activities to promote tourism and to carry out and further the
purposes of this Chapter.
Background
Added by State Law 7-62 as Section 7.1402. Renumbered by State Law 7-95.
Section 7.503. Board
of Directors; composition and term.
(1) The State
Visitors Bureau shall be governed by a Board of Directors. The Board of Directors shall consist of five
members, all appointed by the Governor of Kosrae with the advice and consent of
the State Legislature. Three of the
board members shall be members of the private sector whose primary occupations
are in the tourism industry.
(2) The Board of
Directors shall serve a term of four years each. In case of a vacancy, a replacement shall be appointed by the
Governor with the advice and consent of the Legislature.
(3) The Governor
shall make the appointments to the initial Board of Directors within 60 days of
the effective date of this act.
Background
Added by State Law 7-62 as Section 7.1403. Renumbered by State Law 7-95.
Section 7.504. Removal
of Board Members.
(1) Members of the
Board of Directors shall be removed for good cause by a majority vote of the
Board. The Board determines what
constitutes good cause. The decision of
the Board to remove a Board member is final, with no right of appeal.
(2) A private sector
Board member who becomes employed by the government or who ceases to be
primarily occupied in the tourism industry shall be removed from the Board.
Background
Added by State Law 7-62 as Section 7.1404. Renumbered by State Law 7-95.
Section 7.505. Meetings
of the Board. Within 15 days after
the confirmation of the initial Board, the Governor calls an organizational
meeting for the purpose of electing its officers. The Board meets and holds at least one public meeting each
calendar quarter and other public meetings as it may deem necessary for the
transaction of its general business.
Background
Added by State Law 7-62 as Section 7.1405. Renumbered by State Law 7-95.
Section 7.506. Organization
of the Board; quorum; compensation and expenses. The Board organizes by electing one of its members as Chairman
and another as Vice-Chairman. The Board
also designates from among its members a Secretary to keep the minutes and
records of the Board. Any three members
of the Board constitute a quorum, and a concurrence of three members is
necessary for any official action taken by the Board. No vacancy in the membership of the Board impairs the right of a
quorum to exercise all of the rights and perform all of the duties of the
Board. Directors shall not receive
compensation for their services.
Directors may receive compensation for travel expenses and per diem at
Kosrae State Government rates when these amounts would be payable to Kosrae
State Government employees in the same circumstances.
Background
Added by State Law 7-62 as Section 7.1406. Renumbered by State Law 7-95.
Section 7.507. Coordinating
Officer; appointment and removal.
The Board of Directors shall hire a Coordinating Officer who shall be
responsible to the Board of Directors to execute its programs. The Board appoints a Coordinating Officer
and fixes his compensation. The
Coordinating Officer has full charge and control of the Bureau operations. The Board may remove the Coordinating
Officer for good cause upon a majority vote.
During any period when the position of Coordinating Officer is vacant,
the Board may temporarily fill the position pursuant to its rules and
regulations.
Background
Added by State Law 7-62 as Section 7.1407. Renumbered by State Law 7-95.
Section 7.508. Duties
of the Coordinating Officer. The
Coordinating Officer shall:
(1) manage the daily
business of the Bureau; to select and appoint the employees of the Bureau; and
to plan, organize, coordinate and control the services of such employees in the
exercise of the powers of the Bureau under the general direction of the Board;
(2) attend all
meetings of the Board and to submit to the Board reports on the affairs of the
Bureau;
(3) keep the Board
advised on the needs of the Bureau;
(4) consult with the
Board, to prepare in advance of each fiscal year an annual budget for the
Bureau for submission to the Governor and Kosrae State Legislature; and
(5) perform such
other and additional duties as the Board may require.
Background
Added by State Law 7-62 as Section 7.1408. Renumbered by State Law 7-95.
Section 7.509. Transfer
of personnel, funding, facilities and equipment. Following the organization of the Bureau, the State transfers to
the Bureau, all personnel, funding, facilities and equipment from the Division
of Tourism to the Kosrae Visitors Bureau.
Details of this transfer are to be mutually agreed to by the Board and
the Department of Commerce and Industry.
Background
Added by State Law 7-62 as Section 7.1409. Renumbered by State Law 7-95.
Section 7.510. Reporting. The Board shall present an annual report to
the Governor and to the Legislature on the affairs of the Bureau within 60 days
after the end of the fiscal year and, when requested by the Governor or the
Legislature, present special reports within 30 days of the request.
Background
Added by State Law 7-62 as Section 7.1410. Renumbered by State Law 7-95.
Chapter
5. The Port Authority
Section 7.501. The Port Authority. There is hereby established a public
Authority to be known as the Kosrae Port Authority, referred to in this chapter
as the “Authority”.
Background
Added by State
Law 7-91.
Section 7.502. Powers
and duties of the Authority. The
Authority is vested with the following powers and duties:
(1) To operate, manage,
equip, and maintain all ports of entry into the State including, the Okat and
Lelu harbors and docks and the Okat airfield.
(2) To expand and
improve upon the services offered at the ports of entry, and where practicable,
construct and operate new facilities to meet the foreseeable demand for
Authority services.
(3) To adopt and
enforce regulations to effect the purposes of this chapter.
(4) To perform any
inspections or examinations pursuant to Title 14, Chapters 2 and 11.
(5) To employ agents and employees, and enter into
contracts for qualified managers, experts or specialists to advise and assist
the Authority and its employees.
(6) To enter into contracts and leases for terms
not exceeding 25 years. Any other
provision of law notwithstanding, the written concurrence of the Governor and
the approval of the Legislature in the same manner as provided in Title 11,
Section 11.101 shall be first secured by the Authority before entering into any
contract extending for more than one year or which involves the payment or
receipt of $25,000 or more.
(7) The Authority shall procure insurance against
liability or loss in connection with its operations hereunder in such amounts
and from such insurers as it deems practicable.
(8) The Authority, on or before February 1st
of each year, shall prepare and submit to the Governor a written proposal of
expenditures for the coming fiscal year in a manner determined by the Governor.
No expenditures shall be made for a
purpose not included in the adopted budget for that fiscal year and no debt,
obligation, or liability shall be incurred in any period for which the budget
was adopted in excess of the amounts specified therein unless with the written
approval of the Governor.
(9) The enumeration of specific powers and duties
under this section shall not be deemed to be exclusive.
Background
Added by State
Law 7-91.
Section 7.503. Legal
characteristics and capacity of the Authority. In performing the responsibilities and duties authorized by this
act or other laws of the State, the Authority holds the capacity to exercise
all powers reasonably necessary to discharge its duties and responsibilities,
including, but not limited to, the following:
(1) To adopt, alter,
and use an official seal.
(2) To adopt and amend
bylaws and other rules, regulations and directives governing all aspects and
duties granted to or imposed upon it by law. No bylaw, rule or regulation,
other than those covering the internal operation of the Authority, is adopted
without a public hearing.
(3) To establish
procedures and policies to ensure timely payment and collection of Authority
bills.
(4) To sue and be sued
as an entity; provided that satisfaction of judgments or the settlement of
claims on tort actions against the Authority may only be paid out of
contingency reserves or insurance held by the Authority and not out of the
other assets or operating capital of the Authority, and for these purposes the
doctrine of sovereign immunity is recognized and maintained for this public
Authority to the extent not expressly waived by State law.
(5) To acquire, in any
lawful manner, real, personal, or mixed property, either tangible or
intangible; to hold, maintain, use, and operate such property; and to sell,
lease, or otherwise dispose of such property.
(6) To borrow or raise
any sum or sums of money and to issue bonds on such security and upon such
terms as may from time to time be deemed necessary for the expansion and improvement
of Authority services.
(7) To retain and
terminate the services of employees, agents, attorneys, auditors, and
independent contractors upon such terms and conditions as the Authority deems
appropriate.
Background
Added by State
Law 7-91.
Section 7.504. Debts
and obligations of the Authority.
Unless otherwise expressly provided by law, the debts and obligations of
the Authority are not the debts or obligations of the Kosrae State Government,
and the Kosrae State Government is not responsible for any such debts or
obligations.
Background
Added by State
Law 7-91.
Section 7.505. Tax liability. The Authority exists and operates solely for
the benefit of the public and is exempt from any taxes or assessments on any of
its property, operations or activities imposed by the Kosrae State Government
or local governments or, to the extent allowable, the Government of the
Federated States of Micronesia. Nothing
herein may be deemed to exempt employees and independent contractors of the
Authority from tax liability for services rendered to the Authority, and the
Authority is liable for employer's social security contributions in the manner
provided by law. This Section is
repealed on October 1, 2005.
Background
Added by State
Law 7-91.
Section 7.506. Composition
of the Board; term. The Authority
is governed by a Board of five Directors.
The Board is composed of four Directors appointed by the Governor with
the advice and consent of the Legislature, and, ex-officio, the Director of the
Department of Public Works. An
appointed Director serves for a term of four years, subject to reappointment,
and until his successor has been appointed and qualifies. Initially, the Governor appoints two
Directors to two year terms and two Directors to four year terms. A vacancy is filled for the remainder of the
term for the vacated position.
Background
Added by State
Law 7-91.
Section 7.507. Meetings
of the Board. Within 15 days after
the confirmation of the initial Board, the Governor calls an organizational
meeting for the purpose of electing its officers. The Board meets and holds at least one public meeting each
calendar quarter and other public meetings as it may deem necessary for the
transaction of its general business.
Background
Added by State
Law 7-91.
Section 7.508. Organization of the Board; quorum; compensation and expenses. Pursuant to its bylaws, the Board organizes by electing one of its members as Chairman and another as Vice-Chairman. The Board also designates from among its members a Secretary to keep the minutes and records of the Board. Any three members of the Board constitute a quorum, and a concurrence of three members is necessary for any official action taken by the Board. No vacancy in the membership of the Board impairs the right of a quorum to exercise all of the rights and perform all of the duties of the Board. Directors are compensated at established rates when actually attending meetings of the Board, except the Director of the Department of Public Works who does not receive additional compensation. All Directors receive travel expenses and per diem at Kosrae State Government rates when these amounts would be payable to Kosrae State Government employees in the same circumstances.
Background
Added by State
Law 7-91.
Section 7.509. Appointment
of General Manager; removal. The
Board appoints a General Manager and fixes his compensation. The General Manager has full charge and
control of the operation and maintenance of all the Authority facilities and
other real and personal property controlled by the Authority, and of
construction of any facilities, and necessary work on vehicles, vessels and
equipment controlled by or required to be rebuilt or repaired by the
Authority. The Board may remove the
General Manager for good cause upon a majority vote. During any period when the position of General Manager is vacant,
the position is temporarily filled from within the organization pursuant to its
rules and regulations.
Background
Added by State
Law 7-91.
Section 7.510. Duties
of the General Manager. The General
Manager of the Authority has the following duties:
(1) To ensure that all laws and regulations
pertaining to the ports of entry into the State are complied with.
(2) To attend all
meetings of the Board and to submit a general report on the affairs of the
Authority.
(3) To keep the Board
advised on the needs of the Authority.
(4) To approve demands
for payment of obligations for the purposes and within amounts authorized by
the Board.
(5) To prepare or have
prepared all plans and specifications for the construction and repair of
facilities, vehicles, vessels, and equipment operated by the Authority.
(6) To manage the daily
business of the Authority; to select and appoint the employees of the Authority
except as otherwise provided in this act; to contract with independent
contractors; and to plan, organize, coordinate and control the services of such
employees and contractors in the exercise of the powers of the Authority under
the general direction of the Board.
(7) To publish within
60 days after the end of each fiscal year, in the manner required by the Board,
a complete financial and operations statement showing the result of operations
for the preceding fiscal year and the financial status of the Authority on the
last day thereof.
(8) To perform such
other and additional duties as the Board may require.
Background
Added by State
Law 7-91.
Section 7.511. Appointment of comptroller and general
counsel; duties of each. The
General Manager appoints a comptroller and a general counsel, both of whom
report to the General Manager. The
comptroller and the general counsel may be terminated for good cause by the
General Manager. The comptroller and the
general counsel are compensated at rates determined by the Board. Such officers may be full-time employees of
the Authority, shared with the Kosrae State Government, or be placed on
retainer from the private sector. The
General Manager may appoint one or more assistants to any such office.
(1) The comptroller has
custody of all monies of the Authority and pays out such money only in
accordance with the direction of the Board and as provided in the annual budget
of the Authority.
(2) The general counsel
advises the Board and the General Manager in all legal matters to which the Authority
is a party or in which the Authority is legally interested and may represent
the Authority.
Background
Added by State
Law 7-91.
Section
7.512. Accounting and reporting. The Board adopts and maintains a system of
accounting which is in accordance with generally accepted accounting principles
applicable to public corporations. The
system adopted requires:
(1) That the Board
employ a firm of independent certified public accountants who examine and
report upon to the Board, at least annually, all financial records and accounts
maintained by the Authority, and that copies of such reports are furnished to
the Governor and the Legislature, and
(2) That the Board
present to the Governor and the Legislature an annual report on the affairs of
the Authority within 60 days after the end of each fiscal year and, when
requested by the Governor or the Legislature, present special reports within 30 days after the end of each
intervening quarter.
Background
Added by State
Law 7-91.
Section 7.513. Budget
preparation. In consultation with the Board, the General Manager prepares
in advance of each fiscal year an annual budget for the Authority. The Authority uses the same fiscal calendar
as the Kosrae State Government.
Background
Added by State
Law 7-91.
Section 7.514. Supplemental
budget requests. To the extent that
the Board deems it necessary and advisable, the Authority is authorized to seek
grants and loans from the Legislature and, to the extent approved by the
Governor, grants from sources outside of the State, of such funds as are
necessary to supplement revenues to provide for the operation, maintenance, and
expansion of Authority services in the State.
Background
Added by State
Law 7-91.
Section 7.515. Procurement Manual of Administration.
The Board adopts procurement regulations and establishes a Manual of
Administration for the Authority including rules and regulations governing the
selection, promotion, performance evaluation, demotion, suspension, dismissal,
and other disciplinary rules for employees of the Authority.
Background
Added by State
Law 7-91.
Section
7.516. Public Service System
exemption; eligibility for insurance plans, retirement funds and workers
compensation funds. The employees
of the Authority shall be exempt from the provisions of the Public Service
System of Title 18 of this code.
Employees of the Authority are eligible to participate in any health
insurance plan, life insurance plan, retirement fund, and workmen's
compensation fund available to Kosrae State Government employees. The Authority contributes to such programs
as determined by the governing authorities thereof.
Background
Added by State
Law 7-91.
Section 7.517. Transition.
(1) Following
organization of the Authority, the State transfers to the Authority all port of
entry facilities and grounds, along with all equipment and supplies therefor,
on terms mutually agreed to by the State and the Authority.
(2) All State employees
employed in the Division of Airport, Docks and Harbor at the time of the
organization of the Authority shall be allowed to voluntarily transfer to the
Authority. At such time, the Authority
assumes the payroll expenses of transferred employees and credits such
employees with the sick leave and personal leave accrued with the State.
(3) All deeds, bonds,
agreements, instruments and working arrangements existing immediately before
the effective date of this act which affect any undertaking transferred hereby
will continue in full force and effect against or in favor of the Authority.
(4) Any proceedings or
cause of action pending or existing immediately before the effective date of
this act by or against the State or any person acting on behalf of the State
which pertains to any undertaking transferred hereby may be continued or
enforced by or against the Authority.
Any causes of action stemming from conditions existing at the time of
the transfer may be enforced by or against the Authority. The Authority agrees to hold the State
harmless and indemnify the State from all claims, demands, and lawsuits from
any action described in this subsection.
(5) All transfers are
accomplished without disruption of port services which will continue at levels
at least equal to those provided at the time of the transfer.
(6) Title 10 of the
Kosrae Code will apply to the Authority until Section 7.512 is fully complied
with as certified by the firm of independent certified public accountants
employed by the Authority.
Background
Added by State
Law 7-91.
Chapter 6. (Vacant)
Background
Former Chapter 6, establishing
the Health Board, was repealed by State Law 6-1.
Chapter
7. The Land Commission
Section 7.701. The Land Commission. The Land Commission consists of a Senior Commissioner and
two Associate Commissioners who serve terms of two years. A Commissioner is at
least thirty-five years of age and has resided in the State for a cumulative
period of ten years. The Senior Commissioner is the administrator of the Commission.
Section 7.702. Powers and duties. The Commission has
the power and duty to proceed on a systematic geographical basis to determine
and register interests in land in implementation of Title 11, Chapter 6 in a
manner which enables it to dispose expeditiously of uncontested parcels of land
and reserve to the Court difficult issues of law arising from contested
parcels, completing registration of land by December 31, 1996.
Background
Amended by State Law 5-138. Repealed effective October 1, 2001 by State
Law 7-126.
Chapter 8. The Parole Board
Section 7.801. The Parole Board. The Parole Board consists of five members who serve for
terms of three years. Each municipality is the place of residence of at least
one member. A member is a citizen and a State resident for the five years next
preceding appointment. A person who is a Court employee or who holds a license
to practice law in a court may not be a member.
Section 7.802. Powers and duties. The Board has the power and duty to:
(1) establish uniform written standards for consideration of
parole and pardon;
(2) review Court and Office of the Attorney General records;
(3) make recommendations regarding parole or pardon to the
Governor.
Section 7.803. Parole and pardon. The Governor may grant parole and pardon only upon an
affirmative recommendation by the Board.
Section 7.804. Meetings. The Board meets within ten days of receipt of a petition
for parole or pardon, or notification of an eligibility for parole, to consider
the petition or notification.
Section 7.805. Ombudsman. The Ombudsman notifies the Board in writing when a person
is eligible for parole, and assists the Board upon request.
Section 7.806. Parole eligibility. A person is eligible for parole upon serving one-third of
the sentence or a lesser period of time specified by the Court at the time of
sentencing.
Chapter 9. The Sports Council
Section 7.901. The Sports Council. The Sports
Council consists of five members who serve terms of two years. Each
municipality is the place of residence of at least one Council member.
Section 7.902. Powers and duties. The Council has the
power and duty to:
(1) formulate Government policy regarding, and supervise,
sports, leagues and games, and the State's participation in extra-State
tournaments;
(2) recommend to the Legislature and Executive the purchase
of equipment, improvement and use of public land for recreational facilities,
and the hiring of recreation staff; and
(3) collect entrance fees from participants in games and
tournaments and admission fees from persons attending events at the gymnasium
and other recreational facilities.
Background
Amended by State Law 5-116.
Chapter 10. The Scholarship Board
Section 7.1001. The Scholarship Board. The Scholarship Board consists of seven members who serve
terms of two years.
Section 7.1002. Powers and duties. The Board has the power and duty to:
(1) select a recipient of funds appropriated for grants and
loans for post-secondary education; and
(2) adopt written uniform standards for award of funds.
Section 7.1003. Scholarship Loans. Standards adopted by the Board for the award of scholarship
loans ensure that:
(1) recipients are domiciliaries of the State attending or
accepted to attend an institution of learning outside the State;
(2) the recipient or another person makes adequate assurance
for the repayment of the loan by the giving of security or other means;
(3) interest on the loans does not exceed six percent (6%)
per annum;
(4) loans are made on an equitable basis; [and]
(5) The Board
reports in writing to the Governor and the Speaker no later than the first day of
June and December of each year regarding an accounting statement that includes:
(a) all sources and
amounts of funding or income;
(b) all scholarships
awarded;
(c) all office
related expenses and expenditures; and
(d) a list of all
current and past scholarship recipients, the scholarship amount awarded, school
they attend or have attended and past due balances.
The Board reports to the Director for the Department of
Administration and Finance upon the issuance of any scholarship loan, providing
copies of all documents related thereto. The Director for the Department of
Administration and Finance is responsible for receiving repayment of
loans. The Scholarship Board
Administrator is responsible for, with the advice of the Office of the Attorney
General, enforcing the repayment of all scholarship loans made. Monies received
by the Government as repayment of scholarship loans or upon default of a
scholarship loan remain available to the Board to loan to qualified recipients.
Background
Added by State Law 4-144. Amended by State Law 7-1, State Law 7-64 and
State Law 7-71.
Section 7.1004. Administrator;
appointment and removal. The Board
shall hire a full-time Administrator who shall be responsible to the Board to
execute its programs. The Board appoints
the Administrator and fixes his compensation.
The Board may remove the Administrator for good cause upon a majority
vote.
Added by State Law 7-64.
Section 7.1005. Duties
and responsibilities of the Administrator.
The Administrator has the following duties and responsibilities:
(1) To coordinate
the awarding of grants and loans for post-secondary education;
(2) To advise the
Board on applicants’ eligibility for post-secondary grants and loans;
(3) To communicate
with colleges and universities on behalf of students;
(4) To maintain
Scholarship Board records, including financial and academic records of grant
and loan recipients;
(5) To maintain
accounting records of all grants and loans awarded, all payments made and all
amounts outstanding;
(6) To ensure and
pursue collection of loans when due, with the advice of the Office of the
Attorney General; and
(7) To fulfill such
other administrative duties and responsibilities as may be delegated by the
Scholarship Board.
Added by State Law 7-64.
Chapter 11. (Vacant)
Background
Former Chapter
11, establishing the Production and Development Loan Fund Review Board, was
repealed by State Law 6-1.
Chapter 12. The
Utility Authority
Section 7.1201. Authority established. There is hereby established a public Authority to be known
as the Kosrae Utilities Authority, referred to in this Chapter as the
"Authority".
Background
Added by State Law 5-38.
Section 7.1202. Responsibilities, duties and powers of
the Authority. The Authority
is vested with the following powers, duties and responsibilities:
(1) To provide to the public electric power, referred to in
this chapter as "Authority services".
(2) To operate and manage the State's electric power, on the
basis of commercially accepted practices, treating all users of Authority
services on equitable terms in accordance with its published fees and requiring
all users to pay for services rendered.
(3) To expand and improve upon services offered to the
public, and, where practicable, construct and operate new facilities to meet
the foreseeable demand for Authority services.
(4) To publish and implement a structure of rates for
services rendered by the Authority. Such rates are to be determined by the
Board of Directors, and calculated based on revenues and subsidies from all
sources, to ensure that, to the extent practicable, adequate and equitable
charges are imposed and that the fee structure promotes the wise and efficient
use of Authority services.
(5) To acquire and maintain from the revenues and subsidies
received by the Authority, a prudent contingency reserve [or] program of insurance, including liability coverage, for all
personnel, facilities, and equipment controlled by the Authority.
(6) To invest all surplus revenues of the Authority in the
expansion and improvement of Authority service.
(7) To, upon reasonable terms, enter any private or public
land, house, or building to which Authority services have been, are, or will be
supplied or through which utility equipment or lines are or will be located in
order to survey, take readings, make installations or fittings, remove meters
or other instruments for measuring the quantity of service supplies; to dig out
and remove earth, stone, soil, sand and gravel whatsoever for the construction,
maintenance or alteration of any equipment, or line or any part thereof; to cut
and remove any tree or any branch of a tree growing on such lands which may in
any way affect or interfere with the operation of Authority services or
equipment; to open or break up any road; and to erect and maintain posts,
staywires, poles or pillars in or upon any land; or for any other purpose in
connection with the continued provision of Authority services as provided for
by this act. In the exercise of the power to enter onto private or public land
as herein provided, the Authority is not deemed to acquire any right other than
that of a user only in or over the soil of any land. Where such action becomes
a nuisance or causes the loss of value to the owner of the land, such loss is
at the expense of the Authority, which gives reasonable compensation.
Background
Added by State Law 5-38.
Section 7.1203. Legal characteristics and capacity of the
Authority. In performing the responsibilities and duties authorized by
this act or other laws of the State, the Authority holds the capacity to
exercise all powers reasonably necessary to discharge its duties and
responsibilities, including, but not limited to, the following:
(1) To adopt, alter, and use an official seal.
(2) To adopt and amend bylaws and other rules, regulations
[and] directives governing all aspects and duties granted to or imposed upon it
by law. No bylaw, rule or regulation, other than those covering the internal
operation of the Authority, is adopted without a public hearing.
(3) To set interest charges or other monetary penalties, to
require security deposits and create procedures for termination of service, and
to establish such other procedures and policies to ensure timely payment and
collection of Authority bills.
(4) To sue and be sued as an entity; provided that
satisfaction of judgments or the settlement of claims on tort actions against
the Authority may only be paid out of contingency reserves or insurance held by
the Authority and not out of the other assets or operating capital of the
Authority, and for these purposes the doctrine of [sovereign] immunity is
recognized and maintained for this public Authority to the extent not expressly
waived by State law.
(5) To acquire, in any lawful manner, real, personal, or
mixed property, either tangible or intangible; to hold, maintain, use, and
operate such property; and to sell, lease, or otherwise dispose of such
property.
(6) To acquire, in any lawful manner and with the consent of
the entity, the business, property, assets, and liabilities of any public
entity of the State to the extent it provides electric power.
(7) To borrow or raise any sum or sums of money and to issue
bonds on such security and upon such terms as may from time to time be deemed
necessary for the expansion and improvement of Authority services.
(8) To retain and terminate the services of employees,
agents, attorneys, auditors, and independent contractors upon such terms and
conditions as the Authority deems appropriate.
Background
Added by State Law 5-38.
Section 7.1204. Debts and obligations of the Authority. Unless otherwise expressly provided by law, the debts and
obligations of the Authority are not the debts or obligations of the Kosrae
State Government, and the Kosrae State Government is not responsible for any
such debts or obligations.
Background
Added by State Law 5-38.
Section 7.1205. Tax liability. The Authority exists and operates solely for the benefit of
the public and is exempt from any taxes or assessments on any of its property,
operations or activities imposed by the Kosrae State Government or local
governments or, to the extent allowable, the Government of the Federated States
of Micronesia. Nothing herein may be deemed to exempt employees and independent
contractors of the Authority from tax liability for services rendered to the
Authority, and the Authority is liable for employer's social security
contributions in the manner provided by law.
Background
Added by State Law 5-38.
Section 7.1206. Composition of the Board; term. The Authority
is governed by a Board of five Directors. The Board is composed of four
Directors appointed by the Governor with the advice and consent of the
Legislature, and, ex-officio, the Director of the Department of Public Works.
An appointed Director serves for a term of four years, subject to
reappointment, and until his successor has been appointed and qualifies.
Initially, the Governor appoints two Directors to two year terms and two
Directors to four year terms. A vacancy is filled for the remainder of the term
for the vacated position. The General Manager serves pursuant to the provisions
of Section 7.1209.
Background
Added by State Law 5-38.
Section 7.1207. Meetings of
the Board. Within 15 days after the confirmation of the [initial]
Board, the Governor calls an organizational meeting for the purpose of electing
its officers. The Board meets and holds at least one public meeting each
calendar quarter and other public meetings as it may deem necessary for the
transaction of its general business.
Background
Added by State Law 5-38.
Section 7.1208. Organization of the Board; quorum;
compensation and expenses. Pursuant to its bylaws, the Board organizes by electing one
of its members as Chairman and another as Vice-Chairman. The Board also
designates from among its members a Secretary to keep the minutes and records
of the Board. Any three members of the Board constitute a quorum, and a
concurrence of three members is necessary for any official action taken by the
Board. No vacancy in the membership of the Board impairs the right of a quorum
to exercise all of the rights and perform all of the duties of the Board. Directors
are compensated at established rates when actually attending meetings of the
Board, except the Director of the Department of Public Works who does not
receive additional compensation. All Directors receive travel expenses and per
diem at Kosrae State Government rates when these amounts would be payable to
Kosrae State Government employees in the same circumstances.
Background
Added by State Law 5-38.
Section 7.1209. Appointment of General Manager; removal. The Board appoints a General Manager and fixes his
compensation. The General Manager has full charge and control of the operation
and maintenance of all the Authority facilities and other real and personal
property controlled by the Authority, and of construction of any facilities,
and necessary work on vehicles, vessels and equipment controlled by or required
to be rebuilt or repaired by the Authority. The Board may remove the General
Manager for good cause upon a majority vote. During any period when the
position of General Manager is vacant, the position is temporarily filled from
within the organization pursuant to its rules and regulations.
Background
Added by State Law 5-38.
Section 7.1210. Duties of the General Manager. The General Manager of the Authority has the following
duties:
(1) To ensure that all fees and bills imposed by the
Authority are charged and collected.
(2) To attend all meetings of the Board and to submit a
general report on the affairs of the Authority.
(3) To keep the Board advised on the needs of the Authority.
(4) To approve demands for payment of obligations for the
purposes and within amounts authorized by the Board.
(5) To prepare or have prepared all plans and specifications
for the construction and repair of facilities, vehicles, vessels, and equipment
operated by the Authority.
(6) To manage the daily business of the Authority; to select and appoint the employees of the Authority
except as otherwise provided in this act; to contract with independent
contractors; and to plan, organize, coordinate and control the services of such
employees and contractors in the exercise of the powers of the Authority under the general direction
of the Board.
(7) To publish within 60 days after the end of each fiscal
year, in the manner required by the Board, a complete financial and operations
statement showing the result of operations for the preceding fiscal year and
the financial status of the Authority
on the last day thereof.
(8) To perform such other and additional duties as the Board
may require.
Background
Added by State Law 5-38.
Section 7.1211. Appointment of comptroller and general
counsel; duties of each. The General Manager appoints a comptroller and a general
counsel, both of whom report to the General Manager. The comptroller and the
general counsel may be terminated for good cause by the General Manager. The comptroller
and the general counsel are compensated at rates determined by the Board. Such
officers may be full-time employees of the Authority, shared with the Kosrae
State Government, or be placed on retainer from the private sector. The General
Manager may appoint one or more assistants to any such office.
(1) The comptroller has custody of all monies of the
Authority and pays out such money only in accordance with the direction of the
Board and as provided in the annual budget of the Authority. The Board appoints
an agent as its trustee for payment of bonds issued by it and for such related
purposes as the Board may provide.
(2) The general counsel advises the Board and the General
Manager in all legal matters to which the Authority is a party or in which the
Authority is legally interested and may represent the Authority.
Background
Added by State Law 5-38.
Section 7.1212. Accounting and reporting. The Board adopts and maintains a system of accounting which
is in accordance with generally accepted accounting principles applicable to
public corporations. The system adopted requires:
(1) That the Board employ a firm of independent certified
public accountants who examine and report upon to the Board, at least annually,
all financial records and accounts maintained by the Authority, and that copies
of such reports are furnished to the Governor and the Legislature, and
(2) That the Board present to the Governor and the
Legislature an annual report on the affairs of the Authority within 60 days
after the end of each fiscal year and, when requested by the Governor or the
Legislature, present special reports within
30 days after the end of each intervening quarter.
Background
Added by State Law 5-38.
Section 7.1213. Budget preparation. In consultation with the Board, the General Manager
prepares in advance of each fiscal year an annual budget for the Authority,
taking into consideration anticipated capital and operational expenditures and
anticipated revenues. The Authority uses the same fiscal calendar as the Kosrae
State Government. The budget indicates the operational, capital, and
maintenance requirements of the Authority that will be met with the anticipated
revenues of the Authority, and such essential requirements as cannot be met
without increase in the rate of revenues or outside financial assistance.
Background
Added by State Law 5-38.
Section 7.1214. Supplemental budget requests. To the extent that the Board deems it necessary and
advisable, the Authority is authorized to seek grants and loans from the
Legislature and, to the extent approved by the Governor, grants from sources
outside of the State, of such funds as are necessary to supplement revenues to
provide for the operation, maintenance, and expansion of Authority services in
the State.
Background
Added by State Law 5-38.
Section 7.1215. Procurement Manual of Administration. The Board adopts procurement regulations and establishes a
Manual of Administration for the Authority including rules and regulations
governing the selection, promotion, performance evaluation, demotion, suspension,
dismissal, and other disciplinary rules for employees of the Authority.
Employees of the Authority are eligible to participate in any health insurance
plan, life insurance plan, retirement fund, and workmen's compensation fund
available to Kosrae State Government employees. The Authority contributes to
such programs as determined by the governing authorities thereof.
Background
Added by State Law 5-38.
Section 7.1216. Transition. Following organization of the Authority, the State
transfers to the Authority all electric power facilities and grounds, along
with all equipment and supplies therefor, on terms mutually agreed by the State
and the Authority. All deeds, bonds, agreements, instruments and working
arrangements existing immediately before the effective date of this act which
affect any undertaking transferred hereby will continue in full force and
effect against or in favor of the Authority. Any proceedings or cause of action
pending or existing immediately before the effective date of this act by or
against the State or any person acting on behalf of the State which pertains to
any undertaking transferred hereby may be continued or enforced by or against
the Authority. All transfers are accomplished without disruption of utility
services which will continue at levels at least equal to those provided at the
time of the transfer. Title 10 of the Kosrae Code will apply to the Kosrae
Utilities Authority until Section 7.1212 of this Chapter is fully complied with
as certified by the Authority firm of independent certified public accountants.
Background
Added by State Law 5-38.
Former Chapter 13 Background
Former Chapter 13, establishing the Board of Education, was repealed by State Law 6-1. The subsequent Chapter 13, establishing the Micronesia Petroleum Corporation, was added by State Law 6-98 and repealed and replaced by State Law 7-28. See Part II, Government Financed Enterprises below.
Part II. Government
Financed Enterprises
Part II Background
State Law 7-8 divided Title 7 into two parts, “Agencies” and “Government Financed Enterprises,” and added Chapter 14 under Part II, Government Financed Enterprises. As originally enacted by State Law 7-8, Part II started immediately after Chapter 13 of Title 7. State Law 7-28 moved the new Part II so that it followed Chapter 12 of Title 13, repealed the former Chapter 13,”Micronesia Petroleum Corporation,” and enacted a new Chapter 13 within Part II.
Chapter 13.
Micronesia Petroleum Corporation
Section 7.1301. Corporation
established. There is a corporation
known as the Micronesia Petroleum Corporation, formerly establish[ed] by the
Code, referred to in this Chapter as the “Corporation”.
Added by State Law 7-28.
Section 7.1302. Responsibilities,
duties and powers of the Corporation.
The Corporation is vested with the following powers, duties and
responsibilities:
(1) To operate and
manage the State's fuel storage facility.
(2) To expand and
improve the State owned fuel storage facility to meet the foreseeable demand
for reliable and economical fuel for the public and private sectors of the
State.
(3) To engage in the
business of buying and selling petroleum products.
(4) Incidental to
its petroleum business, to transport goods to and from Kosrae and other
locations in the Pacific region. The
Corporation may not market goods that it transports under this Subsection.
(5) To acquire and
maintain from the revenues and subsidies received by the Corporation, a prudent
contingency reserve of capital, a program of insurance, including liability
coverage, for all personnel, facilities, and equipment controlled by the
Corporation.
(6) To deposit in
the Kosrae State Treasury surplus revenue, consistent with Section 7.1315,
after investments in expansion, improvements of the Corporation and the payment
of dividends, as approved by the Board of Directors.
(7) To issue
dividends to shareholders as approved by the Board of Directors.
(8) To sue and be
sued in its own name.
(9) To borrow funds for its operation, maintenance,
improvement, expansion and development.
(10) To sell
minority ownership interest or stock in the Corporation, not in excess of
forty-nine (49%) percent of the total value of the Corporation.
Added by State Law 7-28 and State
Law 7-74.
Section 7.1303. Legal
characteristics and capacity of the Corporation. In performing the responsibilities and duties authorized by this
act or other laws of the State, the Corporation holds the capacity to exercise
all powers reasonably necessary to discharge its duties and responsibilities,
including, but not limited to the following:
(1) To adopt, alter
and use an official seal.
(2) To adopt and
amend bylaws and other rules, regulations and directives governing all aspects
and duties granted to or imposed upon it by law. No bylaws, rules or regulation other than those covering the
internal operation of the Corporation shall be adopted without a public
shareholder meeting. Notice of a
meeting. Notice of a meeting within
this subsection shall be given to shareholders thirty (30) days prior to the
Board of Directors meeting.
(3) To set interest
charges or other monetary penalties, to require security deposits and create
procedures for termination of service, and to establish such other procedures
and policies to ensure timely payment of Corporation bills.
(4) To sue and be
sued as an entity; provided that satisfaction of judgment or the settlement of
claims or tort actions against the Corporation may only be paid out of
contingency reserves or insurance held by the Corporation and not out of the
other assets or operating capital of the Corporation, and for these purposes
the doctrine of sovereign immunity is recognized and maintained for this public
corporation to the extent not expressly waived by the State law.
(a) Notwithstanding
subsection (4) above, the Corporation may pledge its assets or operating
capital as collateral to secure a loan from the FSM Development Bank. If the Corporation fails to make any payment
due under such a loan in a timely manner, the Corporation shall immediately
inform the Governor and the Speaker to enable the State to take action to
ensure that payment is made. The FSM
Development Bank may also notify the Governor or the Speaker of any failure by
MPC to make a timely loan payment. No
foreclosure or acceleration of the debt is effective unless the Governor and
Speaker receive a notice of nonpayment provided under this paragraph.
(5) To acquire in
any lawful manner, real, personal, or mixed property, either tangible or
intangible, to hold, maintain, use, and operate such property; and to sell,
lease or otherwise dispose of such property.
(6) To acquire in
any lawful manner and with consent of the entity, the business, property,
assets, and liabilities of any public entity of the State to the extent it
provides fuel.
(7) To borrow or
raise any sums of money or such security and upon such terms as may from time
to time be deemed necessary for the expansion and improvement of the
Corporation's business.
(8) To retain and
terminate the services of employees, agents, attorneys, auditors, and
independent contractors upon such terms and conditions as the Corporation deems
appropriate.
Added by State Law 7-28. Amended by State Law 7-106 to add Subsection
(4)(a).
Section 7.1304. Debts
and obligations of the Corporation.
Unless otherwise provided by law, the debts and obligations of the
Corporation are not the debts and obligations of the Kosrae State Government,
and the Kosrae State Government is not responsible for any such debts or
obligations.
Added by State Law 7-28.
Section 7.1305. Composition of the Board, terms. The Corporation is governed by the Board of
Directors. There shall be five (5)
directors on the Board appointed by the State of Kosrae. In addition to the five (5) appointed
directors, each shareholder possessing a twenty (20%) percent or more ownership
of outstanding stock, or his designee, shall serve as director. The five appointed board members are
nominated by the Governor, with the advice and consent of the Legislature. An appointed Director serves for a term of
four years, subject to reappointment, and until his successor has been
appointed and qualifies. A vacancy of
an appointed Director is filled for the remainder of the terms for that vacated
position.
Added by State Law 7-28.
Section 7.1306. Meeting
of the Board. The Board meets and
holds at least one annual shareholders’ meeting. The Board may call other meetings as it deems necessary for the
transaction of its general business.
Added by State Law 7-28.
Section 7.1307. Organization
of the board; quorum; compensation and expenses. Pursuant to its bylaws, the Board organizes by electing one of
its members as Chairman and another as Vice-Chairman. The Board also designates from among its members a Secretary to
keep the minutes and records of the Board.
A majority of the Board constitutes a quorum, and a concurrence of a
majority of its members is necessary for any official action to be taken by the
Board. No vacancy in the membership of
the Board impairs the right of a quorum to exercise all of the rights and
perform all of the duties of the Board.
Directors are compensated at prescribed rates, which may not exceed $50
per meeting, when they physically attend meetings of the Board. All Directors, appointed by the State of
Kosrae, receive travel expenses and per diem at Kosrae State Government rate
when these amounts would be payable to Kosrae State government employees in the
same circumstances. Non-appointed
Directors shall not receive travel expenses or per diem from the Corporation.
Background
Added by State Law 7-28. Amended by State Law 7-60.
Section 7.1308. Appointment
of General Manager, removal. By a
majority vote, the Board appoints a General Manager and fixes his
compensation. The General Manager has
full charge and control of the operation and management of the Corporation and
other real and personal property controlled by the Corporation, and of
construction and maintenance of any facility and necessary work on vehicles,
vessels and equipment controlled by or required to be built or repaired by the
Corporation. The Board may remove the
General Manager for good cause upon a majority vote. During any period when the position of General Manager is vacant,
the position is temporarily filled from within the organization following its
rules and regulations.
Added by State Law 7-28.
Section 7.1309. Duties
of the General Manager. The General
Manager of the Corporation has the following duties:
(1) To ensure that
all fees and bills imposed by the Corporation are charged and collected.
(2) To attend all
meetings of the Board and submit a general report on the affairs of the
Corporation.
(3) To keep the
Board advised on the needs of the Corporation.
(4) To approve
demands for payment of obligations for the purposes and within amounts
authorized by the Board.
(5) To prepare or
have prepared all plans and specifications for the construction and repair of
facilities, vehicles, vessels and equipment operated by the Corporation.
(6) To manage the
day to day business of the Corporation; to select and appoint the employees of the Corporation except as otherwise
provided in this act; to contract with independent contractors, and to plan,
organize coordinate and control the services of such employees and contractors
in the exercise of the powers of the Corporation under the general direction of
the Board.
(7) To publish
within 90 days after the end of each fiscal year, in the manner required by the
Board, a complete financial and operations statement showing the result of
operations for the preceding fiscal year and the financial status of the
Corporation on the last day thereof.
(8) To perform such
other additional duties as the Board may require.
Added by State Law 7-28.
Section 7.1310. Appointment
of Comptroller and general counsel; duties of each. The General Manager appoints a comptroller
and a general counsel, both of whom report to the General Manager. The General Manager may terminate the
comptroller and the general counsel for good cause. The comptroller and the general counsel are compensated at rates
determined by the Board. Such officers
may be full-time employees of the Corporation, shared with the Kosrae State Government,
or be placed on retainer from the private sector. The General Manager may appoint one or more assistants to any
such office.
(1) The Comptroller
has custody of all monies of the Corporation and pays out such money only in
accordance with the direction of the Board and as provided in the annual budget
of the Corporation. The Board appoints
an agent as its trustee for payment of bonds issued by it and for such related
purposes as the Board may provide.
(2) The general
counsel advises the Board and the General Manager in all legal matters to which
the Corporation is a party or in which the Corporation is legally interested
and may represent the Corporation.
Added by State Law 7-28.
Section 7.1311. Valuation,
Accounting and reporting. The Board
adopts and maintains a system of accounting that is in accordance with
generally accepted accounting principles applicable to public
corporations. The system adopted
requires:
(1) That the Board
employs a firm of independent certified public accountants or certified
appraisers to determine the total value of the Corporation prior to any
issuance of stock or sale of a minority interest. The Board shall transmit said report of the Corporation’s
valuation to the Governor and the Speaker prior to any issuance of stock or
sale of a minority interest. The Board
shall consult with the Governor and Speaker regarding the minority investment
plan for the Corporation prior to any issuance of stock or sale of a minority
interest.
(2) That the Board
employs a firm of certified public accountants who annually examine and report
to the Board the financial status of the Corporation, and that copies of such
reports are furnished to the Governor and Legislature of Kosrae State, made
available for distribution in the Corporation’s headquarters to shareholders
and transmitted to all shareholders owning at least five (5%) percent of the
outstanding shares; and
(3) That the Board
present to the Governor and Legislature of Kosrae State and all shareholders
who own five (5%) percent or more of the outstanding shares an annual report on
the affairs of the Corporation within 90 days after the end of each fiscal
year. A copy of this annual report
shall also be made available to all shareholders for their review at the
Corporation’s headquarters. When
requested by the Governor or the Legislature, the Corporation shall present
special reports within 60 days after the end of each intervening quarter.
Added by State Law 7-28.
Section 7.1312. Budget
preparation. In consultation with
the Board, the General Manager prepares in advance of each fiscal year an
annual budget for the Corporation, taking into consideration, anticipated
capital and operational expenditures and anticipated revenues. The Corporation uses the same fiscal
calendar as the Kosrae State Government.
The budget indicates the operational, capital and maintenance
requirements of the Corporation that will be met with, the anticipated revenues
of the Corporation and such essential requirements as cannot be met without
increase of revenues or outside financial assistance.
Added by State Law 7-28.
Section 7.1313. Increase
in the rate of services provided.
The Corporation may increase the cost of diesel or gasoline fuel sold
for domestic use in the State of Kosrae, only after exhaustive consultations
with the Governor and Legislature, and they have concluded that such increases
are not unreasonably high, restrictive or discriminatory due to the abuse of
the Corporation's dominant position in the industry. Domestic use includes Kosraean fuel retailers, majority owned
Kosraean businesses and Kosrae State Government.
The Corporation may increase or decrease the price of
aviation or jet fuel as it deems appropriate under common business practices
and contractual obligations. The
Corporation may increase or decrease the price of diesel or gasoline, for
non-domestic use, as it deems appropriate under common business practices and
contractual obligations.
The Corporation may increase or decrease the price of fuel
sold to the Kosrae Utilities Authority as it deems appropriate under common
business practices and contractual obligations, subject to a maximum price
equal to the actual purchase price for the fuel at the refinery plus $0.40 per
gallon. The Corporation shall provide a
written explanation to the Governor and the Speaker of the price to be charged
for fuel sold to the Kosrae Utilities Authority, including appropriate
documentation of any change in the refinery purchase price for the fuel.
Added by State Law 7-28. Amended by State Law 7-125.
Section 7.1314. Deposit
of excess revenue. The General
Manager in consultation with the Board shall set aside sufficient funds from
the revenues of the Corporation to fund the operations, maintenance, expansion,
loan retirement and other legitimate financial needs of the Corporation. Any excess revenue over and above the amount
necessary to fund the legitimate financial needs of the Corporation may be
issued as dividends to the shareholders of the Corporation after the close of
each fiscal year as determined by the Board; provided however that the
aggregate amount of such excess funds shall not be greater than 80% of the
annual net profit of the Corporation.
Added by State Law 7-28.
Section 7.1315. Procurement;
Manual of Administration. The Board
adopts procurement regulations and establishes a Manual of Administration for
the Corporation including rules and regulations governing the selection,
promotion, performance, evaluation, demotion, suspension, dismissal and other
disciplinary rules for employees of the Corporation. Employees of the Corporation are eligible to participate in any
health insurance plan, life insurance plan, retirement fund, and workmen's
compensation funds available to Kosrae State Government employees. The Corporation contributes to such programs
as determined by the governing authorities thereof.
Added by State Law 7-28.
Chapter 14.
Semo-Micronesia Inc.
Background
State Law 7-62 added a new Chapter 14 entitled “The Visitors Bureau” in conflict with the prior Chapter 14, “Semo-Micronesia, Inc.” State Law 7-96 moved the Visitors Bureau provisions to Title 7, Chapter 5.
Section 7.1401. Joint
venture agreement. Pursuant to a
joint venture agreement entered into on October 21, 1995, between the Kosrae
State Government and Semo Co., Ltd., a Korean company, a joint venture company
named Semo-Micronesia, Inc. was established.
Background
Added by State Law 7-8.
Section 7.1402. Nominations
to the Board of Directors, terms, compensation. Pursuant to the Second Amendment to joint venture agreement,
Kosrae State makes three nominations to the Board of Directors of
Semo-Micronesia, Inc. The Governor
makes these nominations to the Board with the advice and consent of the
Legislature. Kosrae board members serve
a term of four years.
Background
Added by State Law 7-8.
Section 7.1403. Reporting
requirements. The Office of the
Governor shall provide to the Kosrae State Legislature a copy of the annual financial
statements, the annual report on operations, the annual independent audit
report, and the annual budget of Semo-Micronesia, Inc. as described in the
joint venture agreement and by-laws of Semo-Micronesia, Inc.
Background
Added by State Law 7-8.
Section 7.1404. Transfer
of shares. The Kosrae State
government shall not pledge, sell, transfer, or otherwise encumber or dispose
of all or any of its shares in Semo-Micronesia Inc., without the prior approval
of the Kosrae State Legislature. The
Kosrae State Legislature’s approval of such action shall be by resolution.
Background
Added by State Law 7-8.