Legislature In Midst of Fifth Special Session

By LG

On April 3^rd, a legislative subpoena was served on Mr. Gerson Jackson, Chairman of MPC’s Board of Directors.  The subpoena specifically ordered Mr. Jackson to provide: “any evidence regarding any payments . . . made by MPC to a Kosrae State Senator while in office; any evidence regarding any effort by MPC . . . to influence the vote of any Kosrae State Senator on legislative matters and any evidence of any suspected criminal activity by any Kosrae State Senator while in office.”

In his letter accompanying the subpoena, Speaker Shrew explained the reasons for the subpoena: “When you [Mr. Jackson] testified before the Committee of the Whole . . . you declined to answer certain questions on the grounds that a criminal investigation was pending and that the investigation extended to members of the Legislature itself . . . It has come to my attention that rumors are circulating among our people regarding cash payments being made to Senators by MPC.” 

Speaker Shrew further stated, “[a]lthough I personally find these rumors difficult to believe, if they prove to be true, I would be seriously concerned as to why criminal prosecutions have not yet been initiated, if justified . . .  Furthermore, so long as any persons involved remain nameless, all Senators -- guilty or innocent -- are tarred by the same brush and have our reputations stained by the charges.  Even if (as I suspect) the rumors are groundless, there remain compelling reasons why the truth must be exposed.”

In response to Speaker Shrew’s letter, Mr. Jackson wrote back, saying: “At the present time, to MPC’s knowledge, the criminal investigations are focusing on Mr. Reddy,” and added, “[s]ince this rumor, if true, would constitute criminal activity, I have asked my counsel to refer your letter to the Attorney General’s office for further action.”

The rumor referred to by Mr. Jackson should be no news to him.  To a large extent, he is accountable for this damaging rumor.  This is because that’s what everyone thought when he told the Legislature and the people of Kosrae that the “criminal” investigation extended to members of this Legislature.  Now, the documents submitted in response to the subpoena have shown that MPC has no evidence whatsoever of any illegal cash payments being made by MPC to any senator.  Nor did these documents show any criminal activity by any senator of the Kosrae State Legislature.

The question remains: why did Mr. Jackson make those hollow accusations?

 

By AN

Medicine Supply

On March 6^th, the Committee on Health and Social Affairs held a public hearing with representatives from the Department of Health Services: Acting Director, Bob Skilling, Dr. Livinson Taulung and Pharmacy Specialist, Mr. Roldon Timothy.  The Committee met to gather information regarding an alleged shortage of medicine at the State Hospital Pharmacy.

According to the witnesses, the Department is not aware of any shortage of medicine.  The witnesses stated, however, that with recurring epidemics, medicine supplies fluctuate day-to-day.  If there is a shortage of a particular brand of medicine, the Doctors prescribe another brand that is available.  The witnesses suggested that claims of medicine shortages might be from patients wanting certain brands.  The Department has, however, placed an order with a US supplier that is being shipped.

In relation to a possible future shortage of medicine, the witnesses indicated that the State’s reimbursement funds from the FSM Health Insurance Company have been withheld since last year.  The FSM Health Insurance Company is withholding those funds to pay off a balance incurred by the State with other institutions.  If the FSM Health Insurance Company continues to withhold the State’s reimbursement funds, a possible shortage of medicine will occur in the future.     

To further its investigation, the Committee recommended that its Chairman, Senator Josaiah Saimon, travel to Pohnpei.  The purpose of the travel is to determine the status of the State’s reimbursement funds.  The Committee on Health and Social Affairs continues to investigate this matter.

Off-Island Medical Referrals

At a recent public hearing before the Health and Social Affairs Committee (H&SA), the Department of Health Services discussed a problem concerning off-island medical referrals for insured patients.

The amount of the stipend and assistance extended to a referred patient is being questioned by both the H&SA Committee and the Department of Health Services.  Currently, no Insurance Company representa-tive meets referred patients while they are in transit through Pohnpei.

According to the Director of Health Services, the Department has raised its concerns with the Insurance Company, however, the State has not yet received any response.  Secretary John Esha is said to be off-island and his subordinate can not provide the information requested.  The H&SA Committee and the Department of Health Services are anxious to receive the requested information from the Insurance Company and to follow up on this inquiry as soon as the information becomes available.

 

By LG

The Legislative Committee on Resources and Development is sending a major bill to the floor in the current Special Session -- the Marine Resources Act.  If passed, the Marine Resources Act will govern all commercial and development activities within the State’s <12-mile territorial waters.  The R&D Committee has reviewed and recommended passage of the bill.

The Department of Agriculture, Land and Fisheries (DALF) will administer the Act.  Persons undertaking any development activities that may affect the State’s fishery waters may be required to prepare an environmental impact statement before starting the development.  The DALF will also have the right to submit comments to other State agencies on any proposed development that affects the State’s fishery waters.  Major fishing activities will require a permit, including fishing by foreign fishing vessels and the transshipment of catch.  DALF may also require permits for other kinds of fishing, the import/export of fish or other marine resources, aquaculture or marine research.  Subsistence fishing is exempt from any license requirement.  For all foreign fishing vessels, a written agreement and payment of a fee are required.

The Act would prohibit the discharge of nonbio-degradable trash and other environmentally harmful substances.  It also prohibits the use of any poison, explosive or electric device to kill or render fish more easily caught.  As currently written, the export of mangrove crabs is prohibited and fish exports for consumption by family members is limited to 50 pounds per shipment, unless prior permission is obtained.  Finally, operating a vessel under the influence of alcoholic drink, a controlled substance or other intoxicating substance is prohibited.   

As mentioned earlier, DALF would be primarily responsible for enforcing the Act, however, the Attorney General must review any legal actions.  Authorized officers and observers will be designated to monitor compliance with the Act.  If authorized by the AG’s Office, DALF may hold an administrative hearing where alleged violators may respond to charges against them.  Violators may be held liable for an administrative penalty, including a payment for the value of fish caught.  The Attorney General may prosecute violations not handled administra-tively.  A civil penalty, not to exceed $1,000,000 for each violation, may be assessed to any person found guilty of committing any prohibited act.  In addition to the civil penalty, a court may also impose a jail sentence, a fine or damage award and revoke a permit issued under the Act.

The Act provides for the forfeiture of property used in connection with a violation.  Property subject to forfeiture includes the vessel and its fishhing gear, furniture, appurte-nances, stores or cargo.  Any fish caught in connection with any violation may also be forfeited to the State.

This bill is highly recommended by the administration and, if passed by the Legislature, will create a new Title 19 under the Kosrae State Code.

 

By CT

To get the answers for all of the grumbling about the State Finance Office’s handling of government payments, the Ways and Means Committee held a public hearing with the Finance Office and Director Bolden Abraham.  With Director Abraham at the hearing were two Finance Office employees, Espil Tulensru and Switson Robert.

The hearing focused primarily on delays in payment and accountability for the problem.  In explaining possible causes of delayed payments, Director Abraham reminded the committee of his recent directive establishing two check runs each month.  According to the Director, there should not be anyy problem, because everything that is packaged properly is run during the bimonthly check runs.

According to the Department representatives, delays are caused by the vendors.  One persistent problem is not having the proper invoices to justify payments.  Vendors need to make sure that all claims are submitted with proper invoices to prevent any delay in payment.

The Committee tried to determine who was responsible for the problems experienced by the Legislature, as well as other departments and agencies.  The Committee explained that, as far as the Legislature was concerned, all its activities followed proper procedures.  If the Legislature was following proper procedures, what caused the delayed payment of those transactions?

The cause became apparent through subsequent testimony.  The Committee was shocked to discover that even after the Director and the Attorney General agreed that a payment should be made, lower-tiered personnel sometimes refused to follow these directions because their personal opinions differed.  The Committee viewed this lower level screening as uncalled for, especially when branch heads and Director Abraham give their endorsement.  The Committee left the hearing hoping that, in the future, decision-making will be made at the appropriate level to ensure a more efficient and consistent payment process.

 

By CW

Kosrae may soon have a new court -- a Land Court that would replace the Land Commission.  On April 5th, the Committee on Judiciary and Governmental Operations met to deliberate on L.B. 7-47, a bill to create a Land Court.  After thoroughly examining the bill, the J&GO Committee agreed on several amendments and recommended its passage as amended.

One of the amendments adopted by the Committee would increase the compensation of the principal justice’s salary to $16,000 and the associate justice’s to $14,000.  The proposed amounts may appear gigantic but the message should be clear to anyone.  The Land Court Justice positions must be attractive to ensure that highly qualified people are willing to accept the jobs.

The proposed Land Court will be under the Kosrae State Court.  Therefore, the Chief Justice will administer the Landd Court’s personnel and budget.  The Principal Land Court Justice will be responsible for the daily operation of the Land Court and should, in practice, have a lot of say in the Chief Justice’s administrative decisions.

There appears to be wide support to replace the Land Commission with a Land Court.  The 1999 Kosrae State Leadership Conference supported such a move.  A similar land court is working well in Pohnpei.  Everyone seems to agree that the disposition of land matters should be under the Judicial Branch, where the adjudication of legal issues is dealt with more strictly.

The bill provides for a transition period -- the Land Court would not take over until January 2, 2001.  This will allow preparation for the full and efficient operation of the Land Court.  Offices and staff would be designated and hired.  The transition period would give the Governor time to search for and nominate qualified justices.  It would also give ample time for the Chief Justice and the new Principal Land Court Justice to hire appropriate staff.

Satisfied with their findings, the members of the J&GO Committee concurred with the idea of establishing a land court.  The final action of the entire Legislature will determine whether the land court proposal becomes law.

By CT

The Committee on Ways and Means recently met to consider Governor Sigrah’s nominees to the newly-created Kosrae Visitors Bureau (KVB).  Having held two public hearings on the Board nominees, the members were ready to take action on the nominations.  Confirmation was recommended for only two of the five nominees.

Why was confirmation of the other three not recommended?  The law creating the KVB, requires that three of the Board’s five members must be from the private sector and have their primary occupation in the tourism industry.  The Governor nominated Senator Albert Welley, Nena Benjamin and Rueben Charley to fill these positions.

The law’s requirement that a nominee have his primary occupation in the tourism industry was the stumbling block for these nominees.  Although the three are involved in the tourism industry, the Committee defined primary occupation as working full-time in the industry and having one’s principal source of income from the industry.  None of the three proposed nominees met this test.  For that reason, the Committee did not recommend their confirmation.

The other two nominees to the KVB Board are Gibson Siba and Ashley Jackson.  The primary occupation test did not apply to these positions.  The Committee recommended that they be confirmed.

 

By JL

From the 16th day through the close of the Third Regular Session, 13 bills and 8 resolutions were introduced, as follows:

L.B. 7-173  Appropriating $40,000 to provide matching funds for the DPW’s OMIP grant

Introduced by request.  ASSIGNED to the Committee on Resources and Development.

L.B. 7-174  Appropriating $35,000 to provide matching funds for the DHS’s OMIP grants

Introduced by request.  ASSIGNED to the Committee on Health and Social Affairs.

L.B. 7-175  Making Mwo Sasu Day a Holiday

Introduced by Sen. Josiah Saimon, Sen. Lyndon Jackson and Sen. Palikun Shrew.  ASSIGNED to the Committee on Judiciary and Governmental Operations.  PASSED Final Reading.

L.B. 7-176  Appropriating $4,150 to fund the Department of Health Services’ outstanding electric bill

Introduced by Sen. Lyndon Jackson.  ASSIGNED to the Committee on Health and Social Affairs.

L.B. 7-177  Appropriating $23,668 to supplement the operation of the Local Office of USDA-Rural Development for the third quarter of FY 2000

Introduced by Sen. Albert Welly and ASSIGNED to the Committee on Ways and Means.  PASSED Final Reading, reducing the amount to $21,643.

L.B. 7-178  Establishing Kosrae Gospel Day as a Holiday

Introduced by Sen. Thurston Siba.  ASSIGNED to Committee on Judiciary and Governmental Operations.   WITHDRAWN from Committee on March 14^th.   TABLED on its First Reading.

L.B. 7-179  Appropriating $4,000 to fund the 19th Annual PIBBA Conference to be held in Saipan

Introduced by Sen. Albert Welly.  Jointly ASSIGNED to the Committees on Ways and Means and Education and Cultural Affairs.

L.B. 7-180  Appropriating $460,000 to be used as collateral to secure a line of credit provided to the Micronesia Petroleum Corporation

Introduced by Speaker Hiteo Shrew.  ASSIGNED to Committee on Ways and Means.

L.B. 7-181 Renumbering Kosrae State Code, Title 7, Chapter 14, to avoid a numbering conflict

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

L.B. 7-182  Renumbering Kosrae State Code, Title 13, Chapter 5, to avoid a numbering conflict

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

L.B. 7-183  Appropriating $8,000 to support fundraising efforts to the Local PIBBA Chapter to participate in the 19th Annual Conference in Saipan

Introduced by Sen. Tadasy Sigrah.  Jointly ASSIGNED to Committees on Ways and Means and Education and Cultural Affairs.  PASSED Final Reading, reducing the amount to $5,000.

L.B. 7-184  Encouraging the development of unimproved State land through leasing

Introduced by Sen. Thurston Siba.  ASSIGNED to Judiciary and Governmental Operations.

L.B. 7-185  Appropriating $18,000 to fund the Kosrae Joint Committee on Negotiation (JCN)

Introduced by Sen. Palikun Shrew.  ASSIGNED jointly to Committees on Ways and Means and Judiciary and Governmental Operation.  FILED on April 6^th.

 

The resolutions introduced during the end of the session are as follows:

L.R. 7-82  Requesting the Governor of Kosrae State to amend the Medical Referral Regulation to allow the physician of an insured person to request a medical referral and have the existing clauses apply only to noninsured persons

Introduced by Sen. Lyndon Jackson.  ADOPTED on March 2^nd.

L.R. 7-83  That Black Micro Corp. consider road paving first in areas where dust is a serious problem to the populace

Introduced by Sen Thurston Siba.  ASSIGNED to Committee on Resources and Development.  FILED  on March 2^nd.

L.R. 7-84  Amending the Legislative Rules of Procedure to establish a deadline by which committees must report out bills

Introduced by Speaker Hiteo Shrew.  ASSIGNED to Committee on Judiciary and Governmental Operations.

L.R. 7-85  Amending the Legislative Rules of Procedure to require public notice for all committee public hearings

Introduced by Speaker Hiteo Shrew.  ASSIGNED to Committee on Judiciary and Governmental Operations.

L.R. 7-86  Proposing an amendment to the Kosrae State Constitution to streamline government functions by eliminating municipal government

Introduced by Vice Speaker Patterson Benjamin.  ASSIGNED to Committee on Judiciary and Governmental Operations.

L.R. 7-87  Requesting the Governor to establish a Local and Regional Comprehensive Plan of Service for persons with disabilities

Introduced by Vice Speaker Patterson Benjamin.  ASSIGNED to the Committee on Health and Social Affairs.

L.R. 7-88  Amending the Legislative Rules of Procedure to specify the procedure to be followed upon receipt of a veto message from the Governor

Introduced by Sen. Semeon Phillip.  ASSIGNED to the Committee on Judiciary and Governmental Operations.

L.R. 7-89  Consenting to the nomination of Steve A. Sigrah to the Lelu Land Registration Team

Introduced by Floor Leader Albert Welly.  ASSIGNED to the Committee on Judiciary and Governmental Operations.

 

Following are the bills (not discussed above) that PASSED Final Reading and were sent to the Governor for his approval in the end of the 3^rd Regular Session.

L.B. 7- 70, L.D. 3  To establish the Kosrae Port Authority to maintain, operate and manage the ports of entry into the State including the Okat and Lelu harbors and Okat airfield

L.B. 7-137  To regulate commercial harvesting, processing, exportation and possession of sea cucumbers

L.B. 7-153, L.D. 2  Appropriating $90,000 for the four municipalities of Kosrae

L.B. 7-162, L.D 2  Appropriating $11,000 to fund the installation of electrical power at SEMO

L.B. 7-172  Appropriating $400,000.00 for Road Paving from Okat, Tafunsak to Tofol, Lelu