Legislature Convenes  Third Regular Session

his is the second regular issue of the Legislative News.  We hope that it provides you with useful information on what your Legislature is doing.  If you have any questions or suggestions for future issues, please contact us at 370-3177.

By JL

The Seventh Kosrae State Legislature convened for its Regular Session on February 14, 2000 at 10:00 a.m.  The Legislature meets in regular session two times a year.  Each session may be no more than 30 calendar days, excluding Sundays.  As of the fourteenth day of session, 17 bills and 6 resolutions had been introduced, they are:

L.B. 7-156  To rescind the action of the Board of Directors of the Micronesia Petroleum Corporation in terminating the General Manager of the Corporation.

Introduced by Sen. Thurston Siba of Lelu.  Assigned to the Committee of the Whole.

L.B. 7-157  To appropriate $70,000.00 from the Compact Current Account of the U.S. Grant Fund to fund the establishment and operation of the Office of the Kosrae Public Auditor for the fiscal year ending September 30, 2000.

Introduced by Floor Leader Welly of Lelu by request.  Assigned to Ways and Means Committee.

L.B. 7-158  To amend the Kosrae State Code, Title 3, to provide for a primary election to select candidates for elective office.

Introduced by Speaker Hiteo Shrew of Malem.  Assigned to the Judiciary and Governmental Operations Committee.

L.B. 7-159  To amend Kosrae State Code, Title 13, Chapter 6, Section 13.626, to make the crime of unathorized election activity a category three felony.

Introduced by Speaker Hiteo Shrew.  Assigned to the Judiciary and Governmental Operations Committee.

L.B. 7-160  To appropriate $100,000.00 from the Capitol Account of the US Grant Fund to fund the improvement project in the Malem Water System.

Introduced by Sen. Palikun Shrew of Malem.  Assigned jointly to the Committees on Judiciary and Governmental Operations and Ways and Means.

L.B. 7-161  To amend Kosrae State Code, Title 13, Chapter 6, to prohibit a candidate’s distribution of food to voters on election day.

Introduced by Sen. Lyndon Jackson of Tafunsak.  Assigned to Judiciary and Governmental Operations.  WITHDRAWN from Committee on February 21^st and TABLED on its FIRST READING.

L.B. 7-162  To appropriate $11,000.00 from the State Revenue Fund to fund the installation cost of electrical power at the Kosrae Ship Repair Facility of Semo Micronesia Inc.

Introduced by Sen. Lyndon Jackson.  Assigned jointly to the Committees on Resources and Development and Ways and Means.  Committees recommended passage.  TABLED on February 29^th.

L.B. 7-163  To amend Kosrae State Code, Title 3, Chapter 13, Section 3.1301(2), to require a State employee to resign his/her position before becoming a candidate for State elective office.

Introduced by Sen. Lyndon Jackson and Sen. Palikun Shrew of Malem.  Assigned to Judiciary and Governmental Operations.  FILED  on February 29^th.

L.B. 7-164  To amend Kosrae State Code, Title 7, Chapter 1, Section 7.105 and Chapter 13, to clarify existing law on Board vacancies; to permit the Micronesia Petroleum Corporation to sell more stock to private shareholders; and to prohibit State officials or employees from serving on the Board of Directors.

Introduced by Vice Speaker Patterson Benjamin of Utwe.  Assigned to the Committee of the Whole.  WITHDRAWN from Committee and PASSED FIRST READING on Februrary 21^st.  TABLED on February 22^nd on its FINAL READING.

L.B. 7-165  To appropriate $8,493 from the Foreign Assistance Fund to fund the CFSM Kosrae Youth Development Project in Kosrae.

Introduced at the Governor’s Request.  PASSED FINAL READING on February 21^st.

L.B. 7-166  To appropriate $48,809.00 from the Foreign Assistance Fund to fund certain FY-99 JTPA Programs in the State.

Introduced by Request.  Assigned to Ways and Means. PASSED FINAL READING February 22^nd.

L.B. 7-167  To amend Sections 7 and 8(1)(b)(d) of the State Law No. 7-41, to provide additional funding from the State Revenue Fund to supplement the operation of the State Legislature.

Introduced by Sen. John Martin of Utwe.  Assigned to Judiciary and Governmental Operations.  WITHDRAWN from Committee and TABLED on its FIRST READING on February 24^th.

L.B. 7-168  To amend Kosrae State Code, Title 7, Section 7.702, to extend time for the Land Commission to complete registration of land.

Introduced by Sen. James Palsis of Tafunsak.  Assigned to Judiciary and Governmental Operations. 

L.B. 7-169  To appropriate $124,414.00 from the Foreign Assistance Fund to fund certain U.S. Federal Programs.

Introduced by Request.  PASSED FINAL READING on February 23^rd.

L.B. 7-170  To appropriate $3,500.00 from the Compact Current Account of the U.S. Grant Fund to fund the 2000 International Women’s Day activities in the State of Kosrae.

Introduced by Sen. Josaiah Saimon of Tafunsak.  Assigned to the Ways and Means Committee.  PASSED FINAL READING on February 29^th.  

L.B. 7-171  To authorize borrowing for the Road Paving Project; authorizing the disbursement of funds to meet borrowing obligations.

Introduced at the Governor’s Request.  Assigned to the Committee of the Whole.

L.B. 7-172  To appropriate $400,000.00 from the Compact Capitol Account to provide additional funding for the Road Paving Project.

Introduced at the Governor’s Request.  Assigned to the Committee of the Whole.

 

All bills passed on final reading were transmitted to the Governor for approval.

 

The following resolutions were introduced during this session:

L.R. 7-78  To censure the Governor of Kosrae and members of the Board of Directors of Micronesia Petroleum Corporation.

Introduced by Vice Speaker Benjamin.  Assigned to the Committee of the Whole.  ADOPTED on February 14^th and transmitted to the Governor and the members of the Board of Directors.

L.R. 7-79  Setting forth the funds estimated to be available from the U.S. Grant Fund, the Revenue Fund, and the Foreign Assistance Fund for the fiscal year ending September 30, 2000 and asking the Governor to notify the Legislature of any change in the amount available from the Treasury.

Introduced by Sen. Palikun Shrew.  Assigned to the Committee of the Whole.  ADOPTED on February 21^st and transmitted to the Governor.

L.R. 7-80  Proposing amendments to the Kosrae State Constitution to reduce the number of Senators from 14 to 10.

Introduced by Sen. Lyndon Jackson.  Assigned to Judiciary and Governmental Operations.  WITHDRAWN from Committee.  After discussion on the floor, RECOMMITTED to the Committee.

L.R. 7-81  Consenting to the nomination of Mr Yosiwo P. George to be the Chief Justice of the Kosrae State Court.

Introduced by Sen. James Palsis of Tafunsak.  Assigned to Judiciary and Governmental Operations.  Public hearings on the resolution are on-going.

 

The Legislature has passed 11 bills during the Third Regular Session.  Following is a list of the bills (not described above) that have been passed and transmitted to the Governor for approval.

L.B. 7-8  To amend Title 7 of the Kosrae State Code to require the Scholarship Board Administrator to enforce repayment of student loans; to create a full time Administrator position to work under and at the pleasure of the Scholarship Board; to establish the duties and responsibilities of the Administrator.

(The Governor vetoed this bill which was passed during the Fourth Special Session.  The Legislature overrode the veto on the opening day of the Third Regular Session.)

L.B. 7-57  To amend Title 7 of the Kosrae State Code regarding fiscal accounting and reporting requirements for the Scholarship Board.

L.B. 7-131  To amend Kosrae State Code, Title 17, Chapter 2, Section 17.207, to provide for staggered motor vehicle registration expiration dates.

L.B. 7-148  To amend Kosrae State Code, Title 7, Chapter 1, Section 7.211, to limit the holdover period for State board members.

L.B. 7-149  To appropriate $150,000 from the Foreign Assistance Fund to fund certain CFSM funded projects in the State of Kosrae.

L.B. 7-152  To amend Kosrae State Code, Title 13, to establish the crime of theft of services.

L.B. 7-155  To amend Kosrae State Code, Title 7, Chapter 13, Section 7.1302, to authorize the Micronesia Petroleum Corporation to engage in the shipping business.

By CT

Legislative Bill No. 7-16, L.D. 1, would give businesses up to 120 days before they must pay sales tax on merchandise imported for sale.  The proposed arrangement would give merchants time to try to sell their goods to earn the money to pay the sales tax.  Under current law (Kosrae State Code, Section 9.403(1)), businesses must pay sales tax before the goods can be released by Customs.

On February 16, 2000, the Committee on Ways and Means recommended L.B. No. 7-16, L.D. 1, be passed.  The bill passed its first reading with no objection.

On the next day, an amendment was proposed to abolish an existing Kosrae Code provision that allows businesses to claim a tax exemption for goods retained for “personal use.”

There was no real opposition to the proposal to abolish the exemption, but a hot debate followed on whether it is more appropriate to abolish the personal use exemption by statute or by regulation.

One argument is that the exemption must be abolished by statute to ensure that the Legislature’s intent is accomplished.  The other side argues that regulation usually responds better to the real issues that need to be addressed.   For the sales tax, the Finance Division knows the relevant issues, thus, the Division should come up with the regulation to address them.

The bill is now tabled indefinitely on the floor.  What is needed now is an answer as to why the proposed exemption amendment should be enacted in statute, and not regulation, or vice versa.

 

By CT

At the February 21^st Session, Speaker Hiteo Shrew designated two new special committees: the Tabled Bill Committee and the Coastal Damage Committee.  These special, temporary committees were created to assist the Legislature on the specific matters assigned to each committee.

The Tabled Bill Committee is composed of the Vice Chairmen of each standing Legislative Committee. This committee is chaired by Senator Thurston Siba and  includes Senators Jackson, Phillip, Martin and Carson Sigrah.   This committee will deal with bills tabled and pending within the Legislature.

The Coastal Damage Committee is composed of the chairman of each municipal delegation.  The Committee, consisting of Senators Phillip (Malem) -- Chairman, and Steven Sigrah (Lelu), Jackson (Tafunsak) and Martin (Utwe) will investigate damage caused by recent storms and high tides.

 

By LG

Legislative Bill No. 7-70, introduced by Senator Thurston Siba of Lelu, calls for the creation of a public authority to be known as the “Port Authority,” that will be responsible for maintaining and operating the State’s ports of entry -- including the Okat and Lelu harbors and docks and the Okat airport.  These functions are currently administered by the Division of Airport, Docks and Harbor under the Department of Public Works.  The bill was introduced to implement the reform policies adopted at the recent state economic summit, particularly the need for the efficient and self-sustaining operation for these services.

The bill was introduced on April 30, 1999 and was referred to the Committee on Resources and Development.  The Committee held a hearing and reviewed relevant information as well as legislation from abroad that created similar entities.

Section 7.502 of this bill describes the powers and duties of the authority, including the following: to operate, manage and maintain all of the State’s ports of entry; to expand and improve upon services offered at these ports; to adopt and enforce regulations; to perform necessary inspections or examinations required by law; to enter into contracts and leases for terms not exceeding 25 years; to obtain insurance against potential liability or loss; and to prepare and submit an annual budget.  Section 7.504 provides that debts of the Authority are not debts or obligations of the State Government.  Section 7.505 provides that the Port Authority is exempt from any taxes except for employment and social security taxes.  The Authority is to be governed by a board of five directors, appointed by the Governor with the advice and consent of the Legislature.  The Board of Directors appoints a General Manager, who runs the day-to-day affairs of the Authority.  The Authority’s employees will not be subject to the State’s Public Service System.  The bill also provides that all current employees of the Division of Airport, Docks and Harbor will have the opportunity to transfer to similar jobs with the Authority. 

All funds and revenues generated by the Authority will be retained by the Authority’s comptroller; this eliminates any involvement by the Division of Finance.

The Port Authority Bill passed in the Legislature and will be transmitted for the Governor’s approval.

 

By LG

There is currently no law or regulation governing the commercial harvesting of sea cucumbers.  Last year, the Legislature passed L.B. No. 7-119, which would have banned the commercial harvesting of sea cucumbers but the Governor vetoed the bill.  Governor Sigrah stated two reasons for his veto: (1) he felt that we needed more information to determine the environmental impact of sea cucumber harvesting; and (2) he was concerned that a ban would hurt local people who are in the sea cucumber business.  The veto message stated that he would submit a bill that would balance the need for environmental protection against the economic benefits of sea cucumber harvesting.  

The Governor submitted his bill and the Resources and Development Committee reviewed and recommended passage of the bill.

The bill gives both the Department of Agriculture, Land and Fisheries (DALF) and the Development Review Commission (DRC) roles in regulating the commercial harvesting of sea cucumbers.  The DRC will administer a permit system to control sea cucumber harvesting.  No person may possess more than five sea cucumbers at one time nor harvest sea cucumbers for commercial purposes without a permit.  The bill also requires the DRC to adopt regulations that balance the need for environmental protection with the sustainable commercial harvesting of sea cucumbers.  The regulations must ban any commercial harvesting or exportation of a sea cucumber species if the Director of DALF determines that the ban is required to prevent the total depletion of that species.  Violation of the permit requirements would be a crime under Section 13.523 of the Kosrae State Code, Unauthorized procuring of aquatic life.

On March 2^nd, the bill passed its Final Reading.  It will be transmitted to the Governor for his approval in the next few days.

 

By AN

Legislative debates and public hearings were not the only activities going in the Legislature in recent days.  Students from the Sansrik Elementary School paid a  visit to the Legislature on February 28^th. Principal Isaac and two coordinating staff members accompanied the students.  The group briefly explained the reasons of the visit as “to get an up-close experience seeing the Legislature in action and meeting with lawmakers in the Legislative Branch of the State Government” as part of their classroom curricula.

The Legislature is pleased to express its appreciation for the group’s visit.  We hope the visit makes a difference in their future educational efforts.

 

By CT

Legislative Resolution 7-77, assigned to the Judiciary and Governmental Operations Committee, would ask the Governor to conduct a census of the population to permit the reapportionment of the Legislature’s membership required by the Constitution.

A second resolution, L.R. 7-80, assigned to the Committee of the Whole, proposes amendments to the Kosrae State Constitution to reduce the number of Senators from fourteen to ten.

Both resolutions remain in committee.

 

By CW

Nomination for Chief Justice.  The Judiciary and Governmental Operations Committee is holding public hearings in the municipalities to receive comments on the nomination of Mr. Yosiwo P. George for Chief Justice of the Kosrae State Court.  Governor Rensley A. Sigrah chose the long-time public figure George to fill the post, which has been vacant since March 5, 1998.  Two prior nominations for the top position in the Judicial Branch failed to obtain Legislative approval.  The appointment of Mr. Harry Skilling by the previous administration faded when the term of the Sixth Legislature ended.  A second nominee proposed by Governor Sigrah, former Chief Justice Lyndon Cornelius, was denied the job when the consenting resolution did not pass.  As a result, Associate Justice Aliksa B. Aliksa has served as Acting Chief Justice for almost two years.

Action on Legislative Bill No. 7-163.  The next general election for the State is just three short years away.  Under Legislative Bill No. 7-163, if an employee of the State wanted to run for Governor or the Legislature, he would be required to give up his State job before filing a petition.  On February 29, the J&GO Committee report, recommending that the bill be filed, was presented to the full Legislature.  During session, an attempt to revive and pass L. B. No. 7-163 was unsuccessful.  A majority of the Legislature agreed with the Committee and voted to defeat the proposal.