First Special Session Twentieth Congress

JOURNAL

FIRST SPECIAL SESSION TWENTIETH CONGRESS

of the

Federated States of Micronesia

MAY 11, 2017 to MAY 10 2019

PALIKIR, POHNPEI

Convened on Tuesday, the 6th of July 2017 Adjourned on Saturday, the 15th of July 2017 Twentieth Congress of the Federated States of Micronesia

FIRST SPECIAL SESSION May 11, 2017 and May 10, 2019

TABLE OF CONTENTS SECTION Page No.

CERTIFICATION...... iii ORGANIZATION ...... iv-vi Leadership and Membership ...... iv Standing Committees ...... v Congressional Offices ...... vi SUMMARY OF LEGISTRATION ...... viii-x DAILY JOURNAL INDEX ...... xii DAILY JOURNAL ...... 2-184 STANDING COMMITTEE REPORTS ...... 185-208 Presidential Communications ...... 209-213 FSM Supreme Court Communications ...... 214-215 Member Communications ...... 216-217 Departmental Communications ...... 218-220 Agency and Governmental Agency Communications ...... 221-223 State Communications ...... 224-225 State Supreme Court Communications ...... 226-227 Municipal or Town Communications ...... 228-229 Foreign Government Communications ...... 230-232 Miscellaneous Communications ...... 233-234 PRESIDENTIAL LINE VETO ...... 235-236 CONGRESSIONAL OVERRIDE ...... 237-238 CONSTITUTION OF THE FEDERATED STATES OF MICRONESIA 239-255 OFFICIAL RULES AND PROCEDURES OF CONGRESS ...... 256-278 INDEX OF LEGISLATION Congressional Bills ...... 280-283 Congressional Resolutions ...... 284-285

ii CERTIFICATION

We hereby certify that the journal for each day’s session, having been either adopted

by the whole Congress, or approved by the Speaker after adjournment, as the same appears in

this Journal of the Twentieth Congress of the Federated States of Micronesia, First Special

Session- 2017, is true and correct and that the original thereof has been duly signed by the

Clerk of the Congress of the Federated States of Micronesia, and is on file in the Office of the

Speaker.

Wesley W. Simina, Speaker Twentieth Congress of the Federated States of Micronesia

Liwiana Ramon Ioanis, Chief Clerk Twentieth Congress of the Federated States of Micronesia

iii TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA

FIRST SPECIAL SESSION 2017 PRESIDING OFFICERS

The Honorable Wesley W. Simina Speaker The Honorable Esmond B. Moses Vice Speaker The Honorable Florencio (Singkoro) Harper Floor Leader

MEMBERSHIP I. Senators-at-Large (4-Years) Alik L. Alik State of Kosrae David W. Panuelo * State of Pohnpei Wesley W. Simina State of Chuuk Joseph J. Urusemal* State of Yap

II. Senators (2- Years) STATE OF KOSRAE Paliknoa K. Welly* ED 1: Kosrae

STATE OF POHNPEI Ferny S. Perman ED 1: Kolonia, Sokehs, Sapwuahfik, Nukuoro and Kapingamarangi Dion G. Neth ED 2: Madolenihmw and Kitti Esmond B. Moses ED 3: U, Nett, Pingelap and Mwoakilloa

STATE OF CHUUK Florencio Singkoro Harper ED 1: Mortlock Islands Victor (Vicky) Gouland ED 2: Northern Namoneas Derensio S. Konman ED 3: Southern Namoneas Tiwiter Aritos* ED 4: Faichuk Region Robson U. Romolow ED 5: Northwestern Islands

STATE OF YAP Isaac V. Figir ED 1: Yap

* Delegation Chairmen

iv TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA May 11, 2017 to May 10, 2019

(First Special Session, 2017) STANDING COMMITTEES WAYS AND MEANS JUDICIARY AND GOVERMENTAL OPERATIONS 1. Isaac V. Figir, Chairman 1. Robson U. Romolow, Chairman 2. Victor (Vicky) Gouland 2. Tiwiter Aritos 3. David W. Panuelo 3. Isaac V. Figir (W&M Committee 4. Ferney S. Perman has no Vice 4. Esmond B. Moses 5. Robson U. Romolow Chairman, based on 5. Wesley W. Simina 6. Joseph J. Urusemal Rule 6, Sect. 8 (c).) 6. Dion G. Neth* 7. Paliknoa K. Welly 7. Paliknoa K. Welly

RESOURCES AND DEVELOPMENT EDUCATION 1. David W. Panuelo, Chairman 1. Joseph J. Urusemal, Chairman 2. Alik L. Alik 2. Alik L. Alik 3. Tiwiter Aritos * 3. Florencio (Singkoro) Harper 4. Isaac V. Figir 4. Derensio S. Konman* 5. Victor (Vicky) Gouland 5. Esmond B. Moses 6. Derensio S. Konman 6. Ferney S. Perman 7. Esmond B. Moses 7. Wesley W. Simina

EXTERNAL AFFAIRS TRANSPORTATION AND COMMUNICATION 1. Paliknoa K. Welly, Chairman 1. Victor (Vicky) Gouland, Chairman 2. Tiwiter Aritos 2. Alik L. Alik * 3. Isaac V. Figir 3. Florencio (Singkoro) Harper 4. Victor (Vicky) Gouland 4. Dion G. Neth 5. Dion G. Neth* 5. Ferney S. Perman 6. David W. Panuelo 6. Wesley W. Simina 7. Robson U. Romolow 7. Joseph J. Urusemal

HEALTH AND SOCIAL AFFAIRS * Vice Chairman 1. Ferney S. Perman, Chairman 2. Alik L. Alik* Congressional Delegations Leadership 3. Tiwiter Aritos Chuuk Delegation Chairman: Tiwiter Aritos 4. Florencio (Singkoro) Harper Kosrae Delegation Chairman: Paliknoa K. Welly 5. Derensio S. Konman Pohnpei Delegation Chairman: David W. Panuelo Yap Delegation Chairman: Joseph J. Urusemal 6. David W. Panuelo 7. Joseph J. Urusemal

v TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA

OFFICE OF SPEAKER PERMENANT STAFF PUBLIC INFORMATION OFFICE Chief Clerk …..Liwiana Ramon Ioanis Public Information Officer ....Lynn Narruhn Assistant Chief Clerk ....essicalynn Reyes Public Information Officer.... Mauel Yoma Speaker’s Secretary …Aldeha E. Salvador Vice Speaker’s Secretary …Consuelo Esiel TEMPORARY STAFF Executive Secretary …Moria Rufes Pages ...... Vertisha Santos Journal Clerk ....Shallane Suzumu ...... Cassantra J. Albert Sergeant-at- Arms …Duwarik Micky ...... Ciandella Aliksa INFORMATION TECHNOLOGY OFFICE ...... Sonsha L. Padock IT Administrator ….... Daystone Roby ...... Trickson B. Ladore Web Master/IT Specialist ...... Jonah Hainrick ...... Eliza Sailas IT Specialist ...... Shane Mackenzie ...... Trandson Mark ...... Vincent Samo

OFFICE OF LEGISLATIVE COUNSEL LEGISLATIVE COUNSEL PERMENANT STAFF Legislative Counsel … T. Lam Dang Secretary ...... Rose Donre Staff Attorneys ……… Catherine Allens Librarian …Nercy Syne-Simina ……… Jesse Conner Stutt Asst. Librarian ...... (Vacant) ……… Alik Jackson Archivist … Mary Kilmete Proofreader … Paul D. Womack

OFFICE OF THE ADMINISTRATION AND BUDGET

OFFICE OF ADMINISTRATION OFFICE OF BUDGET Director of Administration …… Suda S. Rayel Budget Officer ...... Patrick Mackenzie Administrative Officer …… Swider Soking Asst. Budget Officer …. Alfred Ansin Legal Secretary I …… Elise Palsis Budget & Finance Analyst.. (Vacant) Secretary ...... Angelina Zarred Proofreader Journal ……...... Jeanda Redy Administrative Specialist ...... Rerad Warren Administrative Clerk...... , Leeroy Mike Chief of Maintenance …… .... Liperson Peles Building Maintenance ...... Rosenty Nowell Building Maintenance (Temp).. Isao Mark Building Maintenance (Temp)…Peterlee Syne Custodian …… Jacky Mark Custodian …… Justina Roby Custodian …… Bihla Tume

20th CONGRESS of the Federated States of Micronesia

Summary of Legislation

vii SUMMARY OF BILLS Twentieth Congress of the Federated States of Micronesia [FIRST SPECIAL SESSION – 2017 CLASSIFICATION Congressional Bills Introduced 30 Congressional Bills Enacted 17 Line Item Veto 0 Congressional Bills Disapproved 0

CONGRESSIONAL BILLS ENACTED DURING THE FIRST SPECIAL SESSION

C.B. Short Title Trans. Presidential Date Action No. C.B. No. To further amend Public Law No. 19-10, as amended by Public Laws Nos. 19-26, 7/17/17 P.L. No. 20-44 19- 42, 19-51, 19-56, 19-72, 19-78, 19-96, 19-132, 19-163 and 20-03, by amending 20-25 section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in each of the states, and for other purposes. (Urusemal) C.B. No. To further amend Public Law No. 17-68, as amended by Public Laws Nos. 17-71, 17- 7/17/17 P.L No. 20-45 81, 17-84, 17-89, 17-90, 18-03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, 18-95, 19- 20-28 16, 19-47, 19-87, 19-98 and 19-123, by amending section 6 therein, for the purpose of changing the lapse date of certain funds previously appropriated to fund public projects and social programs in each of the states, and for other purposes. (Urusemal) C.B. No. To further amend Public Law No. 19-60, as amended by Public Laws Nos. 19-71, 19- 7/17/17 P.L. No. 20-46 80, 19-103, 19-148 and 19-165, by amending section 6 thereof, to change the lapse 20-30 date of certain funds previously appropriated therein, for the purpose of funding essential government functions, programs, projects and activities in each of the states, and for other purposes. (Urusemal) C.B. No. To further amend Public Law No. 19-64, as amended by Public Laws Nos. 19-81, 19- 7/17/17 P.L. No. 20-47 97, 19-120 and 19-137, by amending section 2 thereof, to change the lapse date of 20-47 funds previously appropriated therein, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei, to correct technical errors, and for other purposes. (Urusemal) C.B. No. To further amend Public Law No. 18-117, as amended by Public Laws Nos. 18-120, 7/17/17 P.L. No. 20-48 19-04, 19-08, 19-35, 19-49, 19-59, 19-76 and 19-102, by amending section 6 thereof, 20-26 to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the states of Yap, Kosrae, Pohnpei and Chuuk, and for other purposes. (Urusemal) C.B. No. To appropriate the sum of $4,200,000 from the General Fund of the Federated States 7/18/17 P.L. No. 20-49 of Micronesia for the fiscal year ending September 30, 2017, for the purpose of 20-31 funding public projects and social programs for the people of Yap, Kosrae, Pohnpei and Chuuk States, and for other purposes. (Gouland) C.B. No. To further amend Public Law No. 18-11, as amended by Public Laws Nos. 18-44, 18- 7/17/17 P.L No. 20-50 81, 19-33, 19-106, 19-128, 19-134, 19-138 and 20-11, by amending section 2 thereof, 20-21 to change the allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes. (Neth)

viii C.B. No. To further amend Public Law No. 18-99, as amended by Public Laws Nos. 7/17/17 P.L. No. 20-24 20-51 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 and 20-18, by amending section 6 thereof, to change the allottee of funds previously appropriated therein to fund public projects and social programs for the people of the state of Pohnpei, and for other purposes. (Neth) C.B. No. To further amend Public Law No. 19-89, as amended by Public Laws Nos. 19-94, 19- 7/18/17 P.L No. 20-32 20-52 127, 19-151, 19-159 and 20-06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs in the state of Pohnpei, and for other purposes. (Panuelo) C.B. No. To further amend Public Law No. 19-121, as amended by Public Laws Nos. 19-130, 7/17/17 P.L No. 20-22 20-53 19-142, 19-145, 19-158 and 20-09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes. (Panuelo) C.B. No. To further amend Public Law No. 19-124, as amended by Public Laws Nos. 19-133, 7/18/17 P.L No. 20-33 20-55 19-140, 19-150, 20-05 and 20-15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the state of Pohnpei, and for other purposes. (Perman) C.B. No. To further amend Public Law No. 19-152, as amended by Public Laws Nos. 19-162 7/17/17 P.L No. 20-27 20-56 and 20-08, by amending section 2 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Yap State, and for other purposes. (Urusemal) C.B. No To further amend Public Law No. 18-70, as amended by Public Laws Nos. 18-98, 18- 7/18/17 P.L No. 20-36 20-59 112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139, 20- 07 and 20-15 by amending section 4 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Pohnpei State, and for other purposes. (Perman) C.B. No. To amend sections 1, 2, 3, 8 and 9 of Public Law No. 19-118, as amended by Public 7/17/17 P.L No. 20-23 20-62, Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160 and 20-14, in order to appropriate CD1 $[9,735,140] 8,735,140 of additional funds from the General Fund of the Federated States of Micronesia for the Fiscal Year ending September 30, 2017, and for other purposes. (Figir) C.B. No. To further amend Public Law No. 15-32, as amended by Public Laws Nos. 15-36, 15- 7/17/17 P.L No. 20-38 20-65 44, 15-57, 15-63, 15-72, 15-78, 16-03, 16-11, 16-33, 16-46, 17-12, 17-21, 17-33, 17- 40, 18-17, 18-67, 18-85, 18-104, 19-17, 19-100 and 19-157, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein to fund public projects and social programs for the people of Chuuk State, and for other purposes. (Simina) C.B. No. To further amend section 1 of Public Law No. 16-18, as amended by Public Laws 7/118/17 P.L No. 20-34 20-66 Nos. 16-24, 16-32, 16-39, 16-45, 16-54, 16-67, 17-04, 17-14, 17-26, 17-39 17-65, 18-27, 18-47, 18-80, 19-13 and 19-108 to change the use of certain funds previously appropriate therein to fund public project and social programs in the state of Chuuk, and for other purposes. (Simina) C.B. No. To further amend Public Law No. 15-80, as amended by Public Laws Nos. 16-04, 17- 7/18/17 P/ L No. 20-37 20-67 53, 18-37, 18-66, 19-14, 19-105 and 19-161, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein, for public projects and social programs in the state of Chuuk, and for other purposes. (Simina)

ix SUMMARY OF RESOLUTIONS Twentieth Congress of the Federated States of Micronesia [FIRST SPECIAL SESSION – 2017 CLASSIFICATION Congressional Resolutions Introduced 9 Congressional Resolutions Adopted 4

CONGRESSIONAL RESOLUTIONS ADOPTED DURING THE FIRST SPECIAL SESSION Adopted Transmittal C.R No. Short Title Date Date 20-17 SETTING THE CEILING OF THE TOTAL FUNDS 7/13/17 7/18/17 ESTIMATED TO BE AVAILABLE FOR APPROPRIATION FROM THE GENERAL FUND OF THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2017. (Figir) 20-19 APPROVING AND ACCEPTING A U.S. AGENCY FOR 7/14/17 7/18/17 INTERNATIONAL DEVELOPMENT GRANT IN THE AMOUNT OF $240,000, TO FUND THE IMPLEMENTATION OF THE INSTITUTIONAL STRNGHTHENING IN PICs TO ADOPT TO CLIMATE CHANGE PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) 20-20 APPROVING AND ACCEPTING A GRANT IN THE 7/13/17 7/18/17 AMOUNT OF 21,270,000 YEN FROM THE GOVERNMENT OF JAPAN, TO FUND THE GOODS AND SERVICES PROGRAM FOR THE FISCAL YEAR 2018 TO ASSIST THE FISHERIES DEVELOPMENT PROGRAM OF THE STATE OF POHNPEI, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) 20-23 REQUESTING THE PRESIDENT OF THE FEDERATED 7/14/17 7/18/17 STATES OF MICRONESIA TO APPOINT A TASK FORCE ON THE ISSUES RAISED BY THE UNIFORM GUIDANCE PERTAINING TO THE U.S. FINANCIAL REGULATIONS. (Simina)

20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Daily Journal Index

xi Twentieth Congress of the Federated States of Micronesia

FIRST SPECIAL SESSION

(July 6th thru July 15th, 2017)

DAILY JOURNAL INDEX

Day Page No. 1. Thursday, July 6, 2017 ...... 1-16 2. Friday, July 7, 2017 ...... 17-34 3. Saturday, July 8, 2017 NO SESSION 4. Sunday, July 9, 2017 NO SESSION 5. Monday, July 10, 2017...... 35-53 6. Tuesday, July 11, 2017 ...... 54-79 7. Wednesday, July 12, 2017 ...... 80-109 8. Thursday, July 13, 2017 ...... 110-132 9. Friday, July 14, 2017 ...... 133-164 10. Saturday, July 15, 2017 ...... 165-184

xii 20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Daily Journal

CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

OPENING DAY Thursday, July 06, 2017

The Opening Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:30 a.m., Thursday, July 06, 2017.

Speaker Wesley W. Simina presided.

Speaker Simina: Pursuant to article IX, section 16, of the Constitution of the Federated States of Micronesia and title 3, section 201, of the Code of the Federated States of Micronesia, and as set forth in the Official Rules of Procedure of the Congress of the Federated States of Micronesia, I hereby call the Twentieth Congress of the Federated States of Micronesia, First Special Session to order.

A moment of silent prayer was observed.

The Chief Clerk yielded the floor to the Assistant Chief Clerk to do roll call of Members.

The Assistant Chief Clerk called the roll. Twelve Members were present; Senator Alik and Floor Leader Harper were excused.

Chairman Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Panuelo seconded, and the motion carried by voice vote.

APPOINTMENT OF COMMITTEE TO WAIT ON THE PRESIDENT

Speaker Simina: I hereby appoint Chairman Welly of Kosrae State to chair the Committee. Members will be Senator Neth of Pohnpei State, Senator Konman of Chuuk, and Chairman Figir of Yap. Please consult with the President’s Office of the timing of the meeting. Next item.

PRESIDENTIAL COMMUNICATIONS

-No. 20-36 - (dated 05/29/17 and received 05/30/17) – Designating Congressional Act No. 20-09 as Public Law No. 20-11: “To further amend Public Law No. 18-11, as amended by Public Laws Nos.18-44, 18-81, 19-33, 19-106, 19-134 and 19-138, by amending sections 1 and 2 thereof, to change the use and allottee of funds previously appropriated for public

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

projects and social programs in the state of Pohnpei, and for other purposes.”

-No. 20-37 - (dated and received May 30, 2017) – Designating Congressional Act No. 20-11 as Public Law No. 20-12: “To further amend Public Law No. 16-58, as amended by Public Laws Nos. 16-64, 16-72, 17-08, 17-11, 17-20, 17-35, 17-41, 18-77 and 19-38, by amending section 5 thereof, to change the use of certain funds previously appropriated, to fund public projects and social programs in the state of Chuuk, and for other purposes.

-No. 20-38 - (dated and received 06/01/17) – Designating Congressional Act No. 20-17 as Public Law No. 20-13: “To further amend section 203 of title 21 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Law 18-52, to require Telecommunications Corporation of the Federated States of Micronesia to provide services and system access on the Handrui cable system to the open access entity free of change, and for other purposes.

-No. 20-39 - (dated and received 06/01/17) – Vetoing Congressional Act No. 20-16: “To amend section 389 under chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated), pertaining to assets and liabilities of the Open Access Entity, and for other purposes.”

-No. 20-40 - (dated and received 06/06/17) – Transmitting a Bill that regulates seabed mining (DSM).

-No. 20-41 - (dated and received 06/16/17) – Designating, with reservations, Congressional Act No. 20-12 as Public Law No. 20-14: “To amend sections 1, 2, 3, 4, 5, 6, 8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160, and 20-01, in order to appropriate $797,065 of additional funds from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, to change the use of certain funds, to correct for a technical error, and for other purposes.”

-No. 20-42 - (dated and received 06/16/17) – Designating Congressional Act No. 20-18 as Public Law No. 20-15: “To further amend Public Law No. 19-124, as amend by Public Laws Nos. 19-133, 19-140, 19-150 and 20-05, by amending section 4, 5 and 6 thereof, to correct technical errors and omissions by changing the use and lapse date of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the states of Pohnpei and Chuuk, and for other purposes.”

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

-No. 20-43 - (dated and received 06/19/17) – Designating Congressional Act No. 20-20 as Public Law No. 20-16: “To further amend Public Law No. 18-70, as previously amended by Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139 and 20-07, by amending section 5 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Chuuk State, and for other purposes.”

-No. 20-44 - (dated and received 06/19/17) – Vetoing Congressional Act No. 20-15: “To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Laws Nos. 18-33, 19-29 and 19-63, by amending sections 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management and properly placed it as one of the Departments of the Federated States of Micronesia National Government, and for other purposes.”

-No. 20-45 - (dated and received 06/23/17) – Designating Congressional Act No. 20-19 as Public Law No. 20-17: “To further amend Public Law No. 17-36, as amended by Public Laws Nos. 17-48, 17-78, 17-87, 18-36, 18-60, 18-65, 18-84, 19-22 and 19-109, by amending section 5 and 6 therein, to change the use and lapse date of certain funds previously appropriated therein to fund public projects and social programs in the State of Chuuk, and for other purposes.”

-No. 20-46 - (dated and received 06/23/2017) – Designating Congressional Act No. 20-13 as Public Law No. 20-18: “To further amend Public Law No. 18-99, as amended by Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74 and 19-107, by amending sections 3, 4, 5 and 6 thereof, to change the use and allottee of funds previously appropriated therein to fund public projects and social programs for the people of the states of Kosrae, Pohnpei and Chuuk, and for other purposes.”

-No. 20-47 - (dated and received 06/23/17) – Vetoing Congressional No. 20-14: “To further amend title 3 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 305 to chapter 3 to place a statutory limit on the amount of funds that Congress may appropriate to members’ representation funds, and for other purposes.”

Speaker Simina: Chief Clerk, make assignment of those Communications. Chairman Panuelo.

Chairman Urusemal: Short recess, Mr. Speaker.

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

Speaker Simina declared the Congress recessed at 10:33 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:34 a.m.

Speaker Simina: Congress comes back to session. I will give Acting Floor Leader Urusemal the floor this time.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. Good morning to you and all the Members, as well as all the distinguish observers of this morning convening of the First Special Session for the Twentieth Congress. Mr. Speaker, I rise on a point of privilege to recognize some individuals who are sitting in the gallery, observing our session this morning. First of all, let me start out by introducing our very own Vice President, the Honorable Yosiwo P. George, who is sitting in the gallery (applause) as well as Cabinet members who are with the Vice President. Included, Mr. Speaker, with the Vice President in attending our opening this morning is his Excellency Ambassador Akilino Susaia, FSM Ambassador to the United States (applause). From our Diplomatic Corps, Embassies here in Pohnpei, we have Ambassador Horie from the Government of Japan (applause) and the Deputy Chief of Mission of the U.S. Embassy, Joanne Cummings (applause). We also have in the gallery, Mr. Speaker and Members, Mr. Asterio Takesy, Vice President, Government relations, Bank of Guam and a member of JCRP, I understand informally that Mr. Asterio is also the Chairman of that group (applause). Also in observance of this morning’s session, Mr. Speaker, I am very privileged to introduce a long time friend, a former member of previous Congresses, two-term Vice President of this Federation, the Honorable Redley Killion and his spouse (applause); he is also the Chairman of the FSM Chamber of Commerce. Included in the gallery, Mr. Speaker, we also have an individual here for meeting of the FSM Telecommunications Corporation, the former Lieutenant Governor of the state of Yap, a very good friend and a very strong supporter of mine, the Honorable Tony Tareq (applause). With the brief introduction, Mr. Speaker, I now yield the floor to Chairman Panuelo.

Speaker Simina: Chairman Panuelo, you have the floor.

Chairman Panuelo: Mr. Speaker, good morning to you; good morning to all of you who are observing from the gallery. Mr. Speaker, thank you. I join our Acting Floor Leader in recognizing the presence of our Vice President, Cabinet members, Diplomatic Corp and the individuals and observers who are observing the gallery. Mr. Speaker, thank you for giving me this opportunity. I rise on a point of privilege, on our behalf, to introduce a certain visitor. I want to introduce Mr. Samuel (Sam) Putin of the Arnold & Porter Law Firm in Washington D.C. Sam is here for a meeting that we’ve just concluded, which was the meeting of the Joint Compact Review Planning Committee, and Sam is also a Legal Counsel to this Committee. Let us gave him a round of applause, please (applause). Thank you. Mr. Speaker, Sam is not a stranger. Having learned much about his background during the progress meeting we had with him, I am very glad to see that he has a rich and wealthy

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

background in the history and evolution of our Pacific region, especially the North Pacific from the Trust Territory days to presence. I’m glad that being here, he is renewing ties and much more in more substantive way that we would be looking forward to the work of our very important Committee, the JCRP. So I look forward to that and I thank Sam and the rest of the members of the JCRP for the productive second meeting that we concluded yesterday. Thank you, Sam, on all our behalf. If I may continue with the recognition, Mr. Speaker, I know the Acting Floor Leader has introduced certain individuals but I will just carry on to also recognize those that Floor Leader has not recognize. I will start with our good Chief of Staff, Leo Falcam Jr. (applause). Thank you; and our very own Ginger Mida, the FSM Postmaster General (applause). Thank you. We have Doctor Rufino Mauricio, our Archive person with a very good background in the history. Let’s also recognize him (applause). Thank you. Mr. Speaker, we also have Mr. Ioanis Sahm, National Election Commissioner for Pohnpei State (applause) and Mr. Tony Otto, our very on former member of Congress who is now the National Director for the Election Office (applause). Mr. Speaker, if you allow me, I want to also do a special recognition for a good friend of mine and that is our former Vice President, a very good friend of mine, I want to recognize again Redley Killion who was my former neighbour and the spouse. We welcome you to the Chamber and look forward to talking to you. Let’s get them around of applause, please (applause). I recognize all the rest of the citizens and visitors who are in the gallery, on behalf of the Pohnpei State, the Delegation and all of us. Thank you, Mr. Speaker.

Speaker Simina: Thank you very much, Chairman Panuelo. Chairman Romolow.

Chairman Romolow: Thank you, Mr. Speaker. Good morning to all the Members and witnesses on the gallery. I know if they all have been recognize but just to make sure that they know that there very own representative in the Congress is recognizing them. Again, I ask and beg the indulgence of this body to recognize the presence of Mr. Asterio Takesy and Tony Otto (applause). Thank you.

Chairman Gouland: Mr. Speaker.

Speaker Simina: Chairman Gouland.

Chairman Gouland: Thank you, Mr. Speaker. I want this Congress to recognize the presence of our own Vice President of the Chuuk State Senate, Vice President Ichiro Choram (applause). Thank you.

Speaker Simina: Any other point of privilege?

Chairman Welly: Mr. Speaker.

Speaker Simina: Chairman Welly.

Chairman Welly: Thank you, Mr. Speaker. Good morning to you and all Members. There are two individuals from the island of the Sleeping Lady that are in the gallery this

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

morning. I am sure everyone here recognized them so I will not introduce them for recognition, Secretary Kephas and Vice President Yosiwo P. George (applause). Thank you.

Speaker Simina: Any other points of privilege? If none, I would like to join the Acting Floor Leader Urusemal and all the Members who have made certain introductions in welcoming our Honorable Vice President George and Members of your Cabinet and the other dignitaries and visitors who are visiting, of course, our Senator Vice President Choram, welcome and thank you for joining us this morning and of course all the other citizens who are observing our session. We welcome you all including our members of the Diplomatic Corps. If there is no further point of privilege, next item.

FSM SUPREME COURT COMMUNICATIONS

-No. 20-02 - (dated and received 06/05/17) – From the Hon. Dennis K. Yamase, Chief Justice, FSM Supreme Court, informing Congress that pursuant to the Judiciary Act of 1979, he has designated the Hon. Camillo Noket, Chief Justice of the Chuuk State Supreme Court to serve a temporary justice of the Supreme Court of the Federated States of Micronesia in Appeal Case No. P1-2013.

Speaker Simina: Assign that, Chief Clerk. Next item.

MEMBER COMMUNICATIONS

-No. 20-03 - (dated and received 07/04/17) – From the Hon. Esmond B. Moses, Vice Speaker of the 20th FSM Congress and Head of the Congress delegation to the bilateral meeting between the United States Department of Interior and the FSM Government in Honolulu, regarding the suspension of the infrastructure sector grants for the FSM Government.

Speaker Simina: Assign that, Chief Clerk. Next item.

DEPARTMENTAL COMMUNICATIONS

-No. 20-05 - (dated 06/02/16 and received 0705/15) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, reporting on the organizational activities of the JCRP so far.

-No. 20-06 - (dated 06/02/15 and received 06/05/17) – From Mrs. Sihna N. Lawrence, Secretary of Finance & Administration, submitting for information a copy of FSM’s unaudited performance for the quarter ended March 31, 2017.

-No. 20-07 - (dated 06/05/17 and received 06/08/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, sharing the attached

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

Diplomatic Note No. FIL-00548 from the Embassy of Mexico in Manila, informing Congress that the Inter-Parliamentary Union will elect its President in the General Assembly to be held in St. Petersburg (Russian Federation) from October 14-18, 2017 and thus submitting the candidature of Ms. Gabriela Cuevas Barron of Mexico for the Presidency of the IPU.

-No. 20-08 - (dated 06/09/17 and received 06/12/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, attaching a Diplomatic Note No. 17-0112 from the U.S. Embassy in Kolonia, with a letter from Mr. Nikolo Pula, acting Assistant Secretary of Insular Affairs, confirming the date of the bilateral meeting between the United States Department of Interior and the FSM Government in Honolulu.

-No. 20-09 - (dated 06/27/17 and received 06/28/17) – From Mr. Samson Pretrick, Deputy Secretary, Department of Foreign Affairs, transmitting a Note Verbale from the Embassy of the Russian Federation, informing of the 137th Assembly of the IPU to be held from October 14 to 18, 2017 in St. Petersburg, Russia. Speaker Simina: Chief Clerk, assign those. Next item.

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

-No. 20-03 - (dated and received 05/30/17) – From Ms. Arlynne Chugen, submitting a report on the status of the MiCare, covering the period of October 01, 2015 to September 30, 2016.

-No. 20-04 - (dated 05/30, 2017 and received 05/31/17) – From Ms. Anna Mendiola, President/CEO, FSM Development Bank, submitting the annual report of the Bank for the year ended December 31, 2016.

-No. 20-05 - (dated 06/05/17 and received 06/06/17), From Mr.Kasio E. Mida, Senior Headquarters Executive, Micronesian Registration Advisors, Inc., offered congratulations and informing Congress of the upcoming MRA seminars in Tokyo in October of 2017.

-No. 20-06 - (dated 06/02/17 and received 06/06/17) – From Mr. Joseph M. Daisy, President & CEO, COM-FSM, sharing the results of the completed quadrennial comprehensive review of the President of the College by the Board of Regents.

-No. 20-07 - (dated 06/12/17 and received 06/13/17) – From Mr. Eugene Pangelinan, Director of NORMA, informing of the Authority’s bilateral consultation with the fishing companies and associations,

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

starting with meetings with the Japanese Association and the domestic fleet including Diving Seagull in Yap from 21 to 27 June 2017.

-No. 20-08 - (dated 06/13/17 and received 06/16/17)- From the Hon. Asher Hainrick, FSM Public Auditor, submitting an audit report on the Yap Visitors Bureau for FY 2015 & 2016.

-No. 20-09 - (dated 06/20/17 and received 06/21/17) – From Mr. Nakama Sana, Banking Commissioner, FSM Banking Board, submitting a quarterly report on the consolidated financial statements of Bank of Guam and Bank of the FSM for the quarter ended March 31, 2017.

-No. 20-10 - (dated 06/20/17 and received 06/29/17) – From Mr. Alexander R. Narruhn, Chairman, Banking Board, submitting the 2016 Annual Report, covering the performance of the insurance system and activities of the Board.

-No. 20-11 - (dated 06/30/17 and received 07/03/17) – From Mr. Joseph M. Daisy, President & CEO, and Mr. Tulensru Waguk, Chairman if the Board of Regents, informing Congress that the COM-FSM will commemorate its 25th anniversary during the first week of April 2018, and extending an invitation to members of Congress to join in the commemorative celebration. Speaker Simina: Chief Clerk, assign those. Next item.

STATE COMMUNICATIONS

-No. 20-04 - (dated 06/28/17 and received 07/05/17) – From Mrs. Florence P. Stanley, Chief Clerk, Chuuk State House of Representatives, transmitting a copy of a joint resolution, which was adopted by both Houses of the 14th Chuuk State Legislature during its regular session: “To express sincere gratitude and appreciation of the Chuuk State Legislature to the United Nations Pacific Office and to the Australia Government for supporting the Chuuk State Legislature seminar and the joint United Nations High Level follow up visit to the Chuuk State, and for other purposes.”

Speaker Simina: Assign that, Chief Clerk. Next item.

STATE SUPREME COURT COMMUNICATIONS

None

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

MUNICIPAL OR TOWN COMMUNICATIONS

-No. 20-01 - (dated 05/36/17 and received 07/05/17) – From Mr. Jose San Nicholas, Mayor, Kolonia Town Government, writing regarding the recent rejection of public projects earmarked last year for Kolonia Town Government.

Speaker Simina: Chief Clerk, assign that. Next item.

FOREIGN GOVERNMENT COMMUNICATIONS

-No. 20-03 - (dated 05/30/17 and received 05/31/15) – From Secretary General Muhammas Reza Majidi, Asian Parliamentary Assembly, requesting a the designation of a focal person and e-mail to ensure that all communications for certain meetings under this organization are received and accounted for members of Congress attending those meetings well before their participation at such meetings.

-No. 20-04 - (dated 05/30/17 and received 06/01/17) – From Mr. Martin Chungong, Secretary General, IPU, sending an invitation to the “Thirteenth Workshop of Parliamentary Scholars and Parliamentarians” to be held Wroxton College, Oxfordshire (United Kingdom) on 29-30 July 2017.

-No. 20-05 - (dated 05/11/17 and received 06/05/17) – From Mr. Martin Chungong, Secretary General, IPU, submitting an outcome document, which the meeting of Young Parliaments meeting on April 25 and 26, 2017 adopted. -No. 20-06 - (dated 06//07/17 and received 07/09/17) – From Mr. Martin Chungong, Secretary General, IPU, sharing the outcome document of a Regional Seminar on Achieving the Sustainable Goals for the Parliaments of Asia Pacific, which took place in Ho Chi Minh City, Vietnam.

-No. 20-07 - (dated 06/08/17 and received 06/09/17) – From Mr. Martin Chungong, Secretary General, IPU, inviting Congress to participate at this years’ United Nations High Level Political Forum on sustainable development from 17 to 19 July 2017.

-No. 20-08 - (dated 06/14/17 and received 07/05, 2017) – From Mr. Martin Chungong, Secretary General, IPU, and the Hon. Saber Chowdhury, President, IPU, enclosing detailed information on the 137th IPU Assembly and related meetings, which will be held at the Tavrichesky Palace and the Parliamentary Centre in St. Petersburg (Russian Federation) from 14-18 October 2017.

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Speaker Simina: Assign those, Chief Clerk. Order of the Day.

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

None

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-13.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-13, DAY 01, THURSDAY, 07/06/17, AT 10:00 A.M.

C.B. NO. SUBJECT COMMITTEE 20-41 To create a new subtitle II of title 24 of the Code of the R&D Federated States of Micronesia, as amended, to establish the National Seabed Resources Authority of the Federated States of Micronesia, provide for the powers, duties, and responsibilities of the Authority, set out the standards of sustainable management of seabed resources, require the promulgation of regulation governing permits and licenses relevant to marine scientific research, prospecting, exploration and mining activities, prescribe the penalty for violation of this Act, and for other purposes. 20-42 To amend section 210 of the title 55 of the Code of the W&M Federated States of Micronesia (Annotated), as amended, to require that fifty percent (50%) of any non- earmarked foreign financial assistance be contributed to the FSM Trust Fund, where it is to be divided equally among the sub-accounts of the National Government and each of the four states, and for other purposes. 20-43 To propose an amendment by referendum to Article II J&GO section 1 of the Constitution of the Federated States of

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Micronesia pertaining to the Supremacy of the FSM Constitution, and for other purposes. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-35 (dated and received 05/29/17) – Re-stating request for INFO. Congress to act on bill, which was transmitted and became CB. No.20-15. [Passed 1st reading on 05/29/17].

Speaker Simina: Chairmen and members of the Committees, take note of the Referral Sheet and plan accordingly. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

None

RESOLUTION CALENDAR

None

INTRODUCTION OF BILLS

C.B. No. 20-41: Introduced by: Floor Leader Harper (By Request) Assigned to: R&D Date introduced: July 06, 2017

To create a new subtitle II of title 24 of the Code of the Federated States of Micronesia, as amended, to establish the National Seabed Resources Authority of the Federated States of Micronesia, provide for the powers, duties, and responsibilities of the Authority, set out the standards of sustainable management of seabed resources, require the promulgation of regulation governing permits and licenses relevant to marine scientific research, prospecting, exploration and mining activities, prescribe the penalty for violation of this Act, and for other purposes.

C.B. No. 20-42: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 06, 2017

To amend section 210 of the title 55 of the Code of the Federated States of Micronesia (Annotated), as amended, to require that fifty

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

percent (50%) of any non-earmarked foreign financial assistance be contributed to the FSM Trust Fund, where it is to be divided equally among the sub-accounts of the National Government and each of the four states, and for other purposes.

C.B. No. 20-43: Introduced by: Speaker Simina Assigned to: J&GO Date introduced: July 06, 2017

To propose an amendment by referendum to Article II section 1 of the Constitution of the Federated States of Micronesia pertaining to the Supremacy of the FSM Constitution, and for other purposes.

INTRODUCTION OF RESOLUTIONS

None

MISCELLANEOUS COMMUNICATIONS

-No. 20-02 - (not dated and received 06/16/17) – From the four conservation societies of the FSM States, expressing gratitude for previous funding and requesting funding support in the amount of $200,000 to the four conservation societies.

-No. 20-03 - (dated and received 06/22/17) – From Mr. Rodney M. Edmond, President, Utwe Congregational Church, informing Speaker of an upcoming visit by the members of the group from Utwe Congregational Church, who will be here in Pohnpei to hold Christian fellowships with the Kosraean community in Pohnpei, and also requesting for a visit to the Congress on July 26, 2017 at 11:30 a.m.

-No. 20-04 - (dated 04/17/17 and received 07/05/17) – From Mrs. Nasako M. Weires-Madsen, a FSM citizen residing in the United States, expressing concerns on the issue of citizens, who have registered to vote, but never received their ballots, to exercise their constitutional rights to vote especially on the Constitutional Amendment on Dual Citizenship.

Speaker Simina: Assign those, Chief Clerk. Next item.

MISCELLANEOUS BUSINESS

Speaker Simina: Do you have any Miscellaneous Business?

Vice Speaker Moses: Mr. Speaker.

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

Speaker Simina: Vice Speaker Moses.

Vice Speaker Moses: Thank you, Mr. Speaker. Good morning to you, Members and those observing our gallery. And I would like to take this time to express my appreciation to the President and the Vice President of the FSM. As I joined them along with Members of Congress last week and I just wanted to express my appreciation on the work that he, Cabinet members, and the Ambassador to the United States and staff performed during the past week and meeting with the United States Government and having the suspension of our infrastructure funding under the compact lifted so that we may continue and progress on our development needs pertaining to infrastructure. That’s what I would like to express at this time. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Vice Speaker Moses. Yes, indeed we are thankful for the lifting suspension on our infrastructure funding. We have to do our part as well. That is required of us. Yes, Acting Floor Leader?

Acting Floor Leader Urusemal: Thank you for reading my mind, Mr. Speaker. In connection to the statement made by our good Vice Speaker and you, Mr. Speaker, I also join you and, especially, Vice Speaker, in congratulating the team from the Executive Branch that went to the meeting. They did a superb job, especially the individuals who were active facilitating and in conveying our concerns to the representative from the United States of America. Having the suspension lifted, now is not the time to sit back and relax and go back to the same mode as we were before the suspension. I would use this opportunity to encourage all of us, especially the states that have not put in effect the PMOs to move and not to wait until next year to move but to move now and not later. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Urusemal. I thought you were going to say, “Go back to sleep.” Any other Miscellaneous Business? If none, next item.

ANNOUNCEMENTS

Speaker Simina: Chairman Welly.

Chairman Welly: Thank you, Mr. Speaker. As you can tell, our President, His Excellency President Christian is not on island. He is off island. The Committee to Wait on the President usually have their session in the morning. But there is a request here is the Committee can meet with him tomorrow at 11:30 a.m., with his Cabinet; and all Members of Congress are also invited, if that is possible. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Welly as also the Chairman of the Committee to Wait on the President. There is that notification that the Committee meet with the President at 11:30 a.m., tomorrow. Take note, members of the Committee to Wait of the time and place. Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. Your Committee on Ways and Means will have a meeting, a public hearing with the Department of Finance Administration and Budget,

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

FY18 Budget tomorrow in the Congress Conference Room at 1:30 p.m. I just want to announce for the main witnesses and the Members to prepare themselves of this important review of the budget. That’s it. Thank you.

Speaker Simina: Thank you, Chairman Figir. Take note, members of the Ways and Means Committee of that upcoming important meeting with the Department of Finance and Administration. Make sure you ask about the projection. Chairman Perman.

Chairman Perman: Thank you, Mr. Speaker. Good morning to you, Members, and all that are observing our session this morning. As of now, your Committee of Health doesn’t have any announcement. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Perman. Chairman Romolow.

Chairman Romolow: No announcement from your Committee on J&GO but be on the look out for hearing. Thank you.

Speaker Simina: Thank you. Members of J&GO, monitor the “Monitor” for announcements. Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, your Committee on R&D has completed all its budget hearings with the departments and agencies under its jurisdiction except with the Department of R&D and we will be scheduling that anytime soon. I just want the executive staff who are here to take note of that. We will be issuing notice of hearing either today or tomorrow. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Panuelo. Take note, members. Chairman Gouland.

Chairman Gouland: Thank you, Mr. Speaker. Your Committee on T&C will hold on till tomorrow then we will send out the notice of hearings. Thank you.

Speaker Simina: Thank you, Chairman Gouland. Chairman Urusemal.

Acting Floor Leader Urusemal: Your Committee on Education has completed, as you know, Mr. Speaker, the report on the budget and its already adopted. So it’s in a sitting mode. We are going to be sleeping and slipping until, maybe, next week.

Speaker Simina: Vice Speaker Moses? Senator Neth? Senator Aritos? Senator Konman? Senator Konman: Thank you, Mr. Speaker. No announcements. Thank you.

Speaker Simina: Thank you very much. I just want to take this opportunity to encourage all the standing Committees to continue hearing from the budget. As much as possible, I would like you to finish up those because I would ask that the first week of our regular session in September, we should be able to pass the budget. That is our target.

July 06, 2017 CONGRESSIONAL JOURNAL – OPENING DAY – 1SS – 20CFSM

Acting Floor Leader Urusemal: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 10:57 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:57 a.m.

Speaker Simina: Congress comes back to session. Acting Floor Leader, you have the floor.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I move that this Congress stand in recess until tomorrow at 10:00 a.m., in the morning, right here at Palikir.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that Congress stand in recess until tomorrow at 10:00 a.m., in the morning, here at Palikir. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress now stands in recess until tomorrow at 10:00 a.m., in the morning.

Speaker Simina declared that the Congress stand in recess at 10:58 a.m., Thursday, July 06, 2017, until tomorrow, Friday, May 12, 2017, at 10:00 a.m.

CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY TWO Friday, July 07, 2017

The Second Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:41 a.m., Friday, July 07, 2017.

Speaker Wesley W. Simina presided.

A moment of silent prayer was observed.

The Chief Clerk yielded the floor to the Assistant Chief Clerk to do roll call of Members.

The Assistant Chief Clerk called the roll. Twelve Members were present; Senator Alik and Floor Leader Harper were excused.

Chairman Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-48 - (dated 07/05/17and received 07/06/17) – Transmitting for review and action of Congress a proposed resolution approving a grant assistance made available by the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Administration in the amount of $250,000 to fund the FSM Department of Health and Social Affairs Opioid State Targeted Response Project managed by the FSM Department of Health and Social Affairs, Substance Abuse and Mental Health Program.

Speaker Simina: Assign that, Chief Clerk. Next item.

FSM SUPREME COURT COMMUNICATIONS

None

MEMBER COMMUNICATIONS

-No. 20-04 - (dated and received 07/06/17) – From the Hon. Ferny S. Perman, Chairman, Committee on Health & Social Affairs, attaching a

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memorandum on health related issues and indicators in the form of comparable data for the years 2012 through 2016 for the FSM States, from Mrs. Magdalena A. Walter, Secretary, Department of Health & Social Affairs.

Speaker Simina: Assign that, Chief Clerk. Next item.

DEPARTMENTAL COMMUNICATIONS

None

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

-No. 20-12 - (dated 06/20/17 and received 07/06/17) – From Mr. Andrew R. Yatilman of the Office of Environment & Emergency Management, submitting a copy of the FSM National Disaster Response Plan (FSM- NRDP) 2016 for reference.

Speaker Simina: Chief Clerk, assign that. Next item.

STATE COMMUNICATIONS

None

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

FOREIGN GOVERNMENT COMMUNICATIONS

-No. 20-09 - (dated 07/05/17 and received 07/06/17) – From the Hon. Norihisa Tamura, President, Japanese Parliamentarian League for the World Health Organization, National Diet of Japan, inviting Speaker to attend the Third Meeting of the Asia-Pacific Parliamentarian Forum on Global Health.

Speaker Simina: Assign that, Chief Clerk. Order of the Day.

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

None

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-14.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-14, DAY 02, FRIDAY, 07/07/17, AT 10:00 A.M. C.B. NO. SUBJECT COMMITTEE 20-44 To further amend Public Law No. 19-10, as W&M amended by Public Laws Nos. 19-26, 19-42, 19-51, 19-56, 19-72, 19-78, 19-96, 19-132, 19-163 and 20-03, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in each of the states, and for other purposes. 20-45 To further amend Public Law No. 17-68, as W&M amended by Public Laws Nos. 17-71, 17-81, 17-84, 17-89, 17-90, 18-03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, 18-95, 19-16, 19-47, 19-87, 19-98 and 19- 123, by amending section 6 therein, for the purpose of changing the lapse date of certain funds previously appropriated to fund public projects and social programs in each of the states, and for other purposes. 20-46 To further amend Public Law No. 19-60, as W&M amended by Public Laws Nos. 19-71, 19-80, 19- 103, 19-148 and 19-165, by amending section 6 thereof, to change the lapse date of certain funds

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

previously appropriated therein, for the purpose of funding essential government functions, programs, projects and activities in each of the states, and for other purposes. 20-47 To further amend Public Law No. 19-64, as W&M amended by Public Laws Nos. 19-81, 19-97, 19-120 and 19-137, by amending section 2 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei, to correct technical errors, and for other purposes. 20-48 To further amend Public Law No. 18-117, as W&M amended by Public Laws Nos. 18-120, 19-04, 19-08, 19-35, 19-49, 19-59, 19-76 and 19-102, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the states of Yap, Kosrae, Pohnpei and Chuuk, and for other purposes. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-36 (dated 05/29/17 and received 05/30/17) – INFO. Designating Congressional Act No. 20-09 as Public Law No. 20-11: “To further amend Public Law No.18-11, as amended by Public Laws Nos.18-44, 18-81, 19-33, 19-106, 19-134 and 19-138,by amending sections 1 and 2 thereof, to change the use and allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes.” 20-37 (dated and received 05/30/17) – Designating INFO. Congressional Act No. 20-11 as Public Law No. 20-12: “To further amend Public Law No. 16-58, as amended by Public Laws Nos. 16-64, 16-72, 17-08, 17-11, 17-20, 17-35, 17-41, 18-77 and 19-38, by amending section 5 thereof, to change the use of certain funds previously appropriated, to fund public projects and social programs in the state of Chuuk, and for other purposes. 20-38 (dated and received 06/01/17) – Designating INFO. Congressional Act No. 20-17 as Public Law No. 20-13: “To further amend section 203 of title 21 of

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

the Code of the Federated States of Micronesia (Annotated), as amended by Public Law 18-52, to require Telecommunications Corporation of the Federated States of Micronesia to provide services and system access on the Handrui cable system to the Open Access Entity free of change, and for other purposes. 20-39 (dated and received 06/01/17) – Vetoing T&C Congressional Act No. 20-16: “To amend section 389 under chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated), pertaining to assets and liabilities of the Open Access Entity, and for other purposes.” 20-40 (dated and received 06/06/17) – Transmitting a bill R&D that regulates seabed mining (DSM). 20-41 (dated and received 06/16/17) – Designating, with W&M/INFO. reservations, Congressional Act No. 20-12 as Public Law No. 20-14: “To amend sections 1, 2, 3, 4, 5, 6, 8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19- 135, 19-146, 19-160, and 20-01, in order to appropriate $797,065 of additional funds from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, to change the use of certain funds, to correct for a technical error, and for other purposes.” 20-42 (dated and received 06/16/17) – Designating INFO. Congressional Act No. 20-18 as Public Law No. 20-15: “To further amend Public Law No. 19-124, as amend by Public Laws Nos. 19-133, 19-140, 19-150 and 20-05, by amending section 4, 5 and 6 thereof, to correct technical errors and omissions by changing the use and lapse date of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the states of Pohnpei and Chuuk, and for other purposes.” 20-43 (dated and received 06/19/17) – Designating INFO. Congressional Act No. 20-20 as Public Law No. 20-16: “To further amend Public Law No. 18-70, as previously amended by Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139 and 20-07, by amending section 5 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

programs for the people of Chuuk State, and for other purposes.” 20-44 (dated and received 06/19/17) – Vetoing J&GO Congressional Act No. 20-15: “To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Laws Nos. 18-33, 19-29 and 19-63, by amending sections 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management and properly placed it as one of the Departments of the Federated States of Micronesia National Government, and for other purposes.” 20-45 (dated and received 06/23/17) – Designating INFO. Congressional Act No. 20-19 as Public Law No. 20-17: “To further amend Public Law No. 17-36, as amended by Public Laws Nos. 17-48, 17-78, 17-87, 18-36, 18-60, 18-65, 18-84, 19-22 and 19-109, by amending section 5 and 6 therein, to change the use and lapse date of certain funds previously appropriated therein to fund public projects and social programs in the state of Chuuk, and for other purposes.” 20-46 (dated and received 06/23/2017) – Designating INFO. Congressional Act No. 20-13 as Public Law No. 20-18: “To further amend Public Law No. 18-99, as amended by Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74 and 19-107, by amending sections 3, 4, 5 and 6 thereof, to change the use and allottee of funds previously appropriated therein to fund public projects and social programs for the people of the states of Kosrae, Pohnpei and Chuuk, and for other purposes.” 20-47 (dated and received 06/23/17) – Vetoing W&M Congressional Act No. 20-14: “To further amend title 3 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 305 to chapter 3 to place a statutory limit on the amount of funds that Congress may appropriate to members’ representation funds, and for other purposes.” FSM SUPREME SUBJECT COMMITTEE COURT COMM. NO. 20-02 (dated and received 06/05/17) – From the Hon. INFO. Dennis K. Yamase, Chief Justice, FSM Supreme

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

Court, informing Congress that pursuant to the Judiciary Act of 1979, he has designated the Hon. Camillo Noket, Chief Justice of the Chuuk State Supreme Court to serve as a temporary justice of the Supreme Court of the Federated States of Micronesia in Appeal Case No. P1-2013. MEMBER SUBJECT COMMITTEE COMM. NO. 20-03 (dated and received 07/04/17) – From the Hon. INFO. Esmond B. Moses, Vice Speaker of the 20th FSM Congress and Head of the Congress delegation to the bilateral meeting between the United States Department of Interior and the FSM Government in Honolulu, regarding the suspension of the infrastructure sector grants for the FSM Government. DEPARTMENTA SUBJECT COMMITTEE L COMM. NO. 20-05 (dated 06/02/16 and received 0705/15) – From the INFO. Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, reporting on the organizational activities of the JCRP so far. 20-06 (dated 06/02/15 and received 06/05/17) – From Mrs. W&M/INFO. Sihna N. Lawrence, Secretary of Finance & Administration, submitting for information a copy of FSM’s unaudited performance for the quarter ended March 31, 2017. 20-07 (dated 06/05/17 and received 06/08/17) – From the INFO. Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, sharing the attached Diplomatic Note No. FIL-00548 from the Embassy of Mexico in Manila, informing that the Inter-Parliamentary Union will elect its President in the General Assembly to be held in St. Petersburg (Russian Federation) from October 14-18, 2017 and thus submitting the candidature of Ms. Gabriela Cuevas Barron of Mexico for the Presidency of the IPU. 20-08 (dated 06/09/17 and received 06/12/17) – From the INFO. Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, attaching a Diplomatic Note No. 17-0112 from the U.S. Embassy in Kolonia, with a letter from Mr. Nikolo Pula, acting Assistant Secretary of Insular Affairs, confirming the date of the bilateral meeting between the United States Department of Interior and the FSM Government in Honolulu.

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

20-09 (dated 06/27/17 and received 06/28/17) – From Mr. INFO. Samson Pretrick, Deputy Secretary, Department of Foreign Affairs, transmitting a Note Verbale from the Embassy of the Russian Federation, informing of the 137th Assembly of the IPU to be held from October 14 to 18, 2017 in St. Petersburg, Russia.

AGENCY OR GOVERNMENTA SUBJECT COMMITTEE L AUTHORITY COMM. NO. 20-03 (dated and received 05/30/17) – From Ms. Arlynne H&SA Chugen, submitting a report on the status of the MiCare, covering the period of October 01, 2015 to September 30, 2016. 20-04 (dated 05/30, 2017 and received 05/31/17) – From R&D Ms. Anna Mendiola, President/CEO, FSM Development Bank, submitting the annual report of the Bank for the year ended December 31, 2016. 20-05 (dated 06/05/17 and received 06/06/17) – From INFO. Mr.Kasio E. Mida, Senior Headquarters Executive, Micronesian Registration Advisors, Inc., offered congratulations and informing of the upcoming MRA seminars in Tokyo in October of 2017. 20-06 (dated 06/02/17 and received 06/06/17) – From Mr. EDUC. Joseph M. Daisy, President & CEO, COM-FSM, sharing the results of the completed quadrennial comprehensive review of the President of the College by the Board of Regents. 20-07 (dated 06/12/17 and received 06/13/17) – From Mr. R&D Eugene Pangelinan, Director of NORMA, informing of the Authority’s bilateral consultation with the fishing companies and associations, starting with meetings with the Japanese Association and the domestic fleet including Diving Seagull in Yap from 21 to 27 June 2017. 20-08 (dated 06/13/17 and received 06/16/17) – From the INFO. Hon. Asher Hainrick, FSM Public Auditor, submitting an audit report on the Yap Visitors Bureau for FY 2015 and 2016. 20-09 (dated 06/20/17 and received 06/21/17) – From Mr. R&D Nakama Sana, Banking Commissioner, FSM Banking Board, submitting a quarterly report on the consolidated financial statements of Bank of Guam and Bank of the FSM for the quarter ended March 31, 2017.

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20-10 (dated 06/20/17 and received 06/29/17) – From Mr. R&D Alexander R. Narruhn, Chairman, Banking Board, submitting the 2016 Annual Report, covering the performance of the insurance system and activities of the Board.

20-11 (dated 06/30/17 and received 07/03/17) – From Mr. INFO. Joseph M. Daisy, President & CEO, and Mr. Tulensru Waguk, Chairman of the Board of Regents, informing that the COM-FSM will commemorate its 25th anniversary during the first week of April 2018, and extending an invitation to members of Congress to join in the commemorative celebration. STATE COMM. SUBJECT COMMITTEE NO. 20-04 (dated 06/28/17 and received 07/05/17) – From Mrs. INFO. Florence P. Stanley, Chief Clerk, Chuuk State House of Representatives, transmitting a copy of a joint resolution, which was adopted by both Houses of the 14th Chuuk State Legislature during its regular session: “To express sincere gratitude and appreciation of the Chuuk State Legislature to the United Nations Pacific Office and to the Australia Government for supporting the Chuuk State Legislature seminar and the joint United Nations High Level follow up visit to the Chuuk State, and for other purposes.” MUNICIPAL OR SUBJECT COMMITTEE TOWN COMM. NO. 20-01 (dated 05/36/17 and received 07/05/17) – From Mr. W&M Jose San Nicholas, Mayor, Kolonia Town Government, writing regarding the recent rejection of public projects earmarked last year for Kolonia Town Government. FOREIGN SUBJECT COMMITTEE GOVERNMENT COMM. NO. 20-03 (dated 05/30/17 and received 05/37/15) – From INFO. Secretary General Muhammas Reza Majidi, Asian Parliamentary Assembly, requesting a the designation of a focal person and e-mail to ensure that all communications for certain meetings under this organization are received and accounted for for members of Congress attending those meetings well

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before their participation at such meetings. 20-04 (dated 05/30/17 and received 06/01/17) – From Mr. INFO. Martin Chungong, Secretary General, IPU, sending an invitation to the “Thirteenth Workshop of Parliamentary Scholars and Parliamentarians” to be held Wroxton College, Oxfordshire (United Kingdom) on 29-30 July 2017. 20-05 (dated 05/11/17 and received 06/05/17) – From Mr. INFO. Martin Chungong, Secretary General, IPU, submitting an outcome document, which the meeting of Young Parliaments meeting on April 25 and 26, 2017 adopted. 20-06 (dated 06//07/17 and received 07/09/17) – From Mr. INFO. Martin Chungong, Secretary General, IPU, sharing the outcome document of a Regional Seminar on Achieving the Sustainable Goals for the Parliaments of Asia Pacific, which took place in Ho Chi Minh City, Vietnam. 20-07 (dated 06/08/17 and received 06/09/17) – From Mr. INFO. Martin Chungong, Secretary General, IPU, inviting Congress to participate at this years’ United Nations High Level Political Forum on sustainable development from 17 to 19 July 2017. 20-08 (dated 06/14/17 and received 07/05, 2017) – From INFO. Mr. Martin Chungong, Secretary General, IPU, and the Hon.Saber Chowdhury, President, IPU, enclosing detailed information on the 137th IPU Assembly and related meetings, which will be held at the Tavrichesky Palace and the Parliamentary Centre in St. Petersburg (Russian Federation) from 14-18 October 2017. MISCELLANEO SUBJECT COMMITTEE US COMM. NO. 20-02 (not dated and received 06/16/17) – From the Four W&M Conservation Societies of the FSM states, expressing gratitude for previous funding and requesting funding support in the amount of $200,000 to the Four Conservation Societies. 20-03 (dated and received 06/22/17) – From Mr. Rodney INFO. M. Edmond, President, Utwe Congregational Church, informing Speaker of an upcoming visit by the members of the group from Utwe Congregational Church, who will be here in Pohnpei to hold Christian fellowships with the Kosraean community in Pohnpei, and also requesting for a visit to the Congress on July 26,

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2017 at 11:30 a.m. 20-04 (dated 04/17/17 and received 07/05/17) – From Mrs. J&GO Nasako M. Weires-Madsen, a FSM citizen residing in the United States, expressing concerns on the issue of citizens, who have registered to vote, but never received their ballots, to exercise their constitutional rights to vote especially on the Constitutional Amendment on Dual Citizenship. Speaker Simina: Chairmen and members of the respective committees take note and plan accordingly. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

None

RESOLUTION CALENDAR

None

INTRODUCTION OF BILLS

C.B. No. 20-44: Introduced by: Senator Joseph J. Urusemal Assigned to: W&M Date introduced: July 07, 2017

To further amend Public Law No. 19-10, as amended by Public Laws Nos. 19-26, 19-42, 19-51, 19-56, 19-72, 19-78, 19-96, 19-132, 19-163 and 20-03, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in each of the states, and for other purposes.

C.B. No. 20-45: Introduced by: Senator Joseph J. Urusemal Assigned to: W&M Date introduced: July 07, 2017

To further amend Public Law No. 17-68, as amended by Public Laws Nos. 17-71, 17-81, 17-84, 17-89, 17-90, 18-03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, 18-95, 19-16, 19-47, 19-87, 19-98 and 19-123, by amending section 6 therein, for the purpose of changing the lapse date of certain funds previously appropriated to fund public projects and social programs in each of the states, and for other purposes.

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C.B. No. 20-46: Introduced by: Senator Joseph J. Urusemal Assigned to: W&M Date introduced: July 07, 2017

To further amend Public Law No. 19-60, as amended by Public Laws Nos. 19-71, 19-80, 19-103, 19-148 and 19-165, by amending section 6 thereof, to change the lapse date of certain funds previously appropriated therein, for the purpose of funding essential government functions, programs, projects and activities in each of the states, and for other purposes.

C.B. No. 20-47: Introduced by: Senator Joseph J. Urusemal Assigned to: W&M Date introduced: July 07, 2017

To further amend Public Law No. 19-64, as amended by Public Laws Nos. 19-81, 19-97, 19-120 and 19-137, by amending section 2 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei, to correct technical errors, and for other purposes.

C.B. No. 20-48: Introduced by: Senator Joseph J. Urusemal Assigned to: W&M Date introduced: July 07, 2017

To further amend Public Law No. 18-117, as amended by Public Laws Nos. 18-120, 19-04, 19-08, 19-35, 19-49, 19-59, 19-76 and 19-102, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the states of Yap, Kosrae, Pohnpei and Chuuk, and for other purposes.

INTRODUCTION OF RESOLUTIONS

None

MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Speaker Simina: Any Miscellaneous Business? Chairman Panuelo, you have the floor.

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Chairman Panuelo: Mr. Speaker, good morning to you and all those who are present here this morning. Mr. Speaker, I know this is not miscellaneous but rather a very important matter that is before Congress. Our Pohnpei Delegation met this morning to update ourselves with the veto that is before Congress on the FSMTC, the issue of the bill that we worked so hard on last session. Your Delegation is requesting all Members to meet at your chosen and convenient time. I know this morning we have the Committee to Wait and all Members are also invited to attend the meeting. If anytime as early as possible, I request that we meet just to gather our thoughts on the important matter so that Congress can have some – get updated on how we can fully understand it and how we can come back and make a decision or action that would be in the best interest of the FSM. That is my miscellaneous business I want to share with you and Members. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Panuelo. Short recess.

Speaker Simina declared the Congress recessed at 10:47 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:57 a.m.

Speaker Simina: Congress comes back to session.

Chairman Panuelo: Point of privilege, Mr. Speaker.

Speaker Simina: Chairman Panuelo, we are on Miscellaneous Business. Go ahead.

Chairman Panuelo: Thank you, Mr. Speaker. We have some friends observing the session this morning. I know the Vice President of the Chuuk State Senate is still here observing our session. Therefore, I want to begin with him. Again, I wish to have Congress recognize Ichiro Choram for his continuous interest in observing our session this morning. Let’s give him a round of applause (applause). Thank you, Mr. Speaker. If I may continue, we have the Vice Speaker of U Municipal Government Council, Mr. Benjamin Amor. He is a very active employee of PTA. Let’s give Mr. Benjamin Amor another round of applause (applause). Thank you. I have a good friend and an active young individual, from PICS High School who has graduated and is recently working, I am sure he has done some undergraduate courses with COMFSM as well, PJ Etnol who is working with our Archives Office. Let’s recognize him and give him another round of applause (applause). Thank you. Last but not the least, Mr. Speaker, I was given this name yesterday but with the constraint of time, I was not able to introduce him. A recent graduate of the UH, Hilo University with Bachelors Degree in economics is here with us. Let’s give a round of applause for recognition and for having completed a University Degree. His name is Jaker Fredrick (applause). I am not sure if he is successful in job hunting. I know a recent graduate of UH with Economics Degrees has been hired by FSMTC. I hope that Jaker can, if he has not been employed, hired to a job. I am just assuming. But if he recently arrived here, I wish him the best in his job searching. Thank you, Mr. Speaker.

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Speaker Simina: Thank you, Chairman Panuelo. Indeed we welcome Jaker Fredrick and his dad Alter Fredrick. I know his dad. I would like to make sure that he was also here yesterday. But you and Senator Neth failed to introduce them. They are from Nankahp, Kitti. We can give them a round of applause once more (applause). Thank you. Any other Miscellaneous Business?

Vice Speaker Moses: Mr. Speaker.

Speaker Simina: Vice Speaker Moses.

Vice Speaker Moses: Thank you, Mr. Speaker. Good morning to you, Members, and those observing. I just want to make a general comment since it’s the first time I have seen it since I became a member of Congress. This morning’s session is the first time that I have actually seen the Journal in front of us before the session started. I just want to make that comment that I am very appreciative of this. Thank you, Mr. Speaker.

Speaker Simina: Thank you. We always dispense with the reading of the Journal but it would be nice to have something in front of us where we can discuss or talk about things and also making reference to it. It doesn’t mean our Journal Clerk is not working hard. Actually she has been producing consistently the Journals.

Chairman Romolow: Mr. Speaker.

Speaker Simina: Chairman Romolow.

Chairman Romolow: Thank you, Mr. Speaker. Just to add on what Chairman Panuelo had mentioned earlier, I want to reflect in our Journal that Vice President Ichiro Choram has been a long serving member of the Chuuk State Legislature who has dedicated almost all his life to public services, starting off as a classroom teacher on his very own Island of Etal, then a Mayor and now a member of the Chuuk State Legislature. Thank you.

Speaker Simina: Thank you, Chairman Romolow. You are correct, indeed. He is one of the longest serving members of our Chuuk Legislature since the unicameral until this bicameral Legislature of Chuuk. I understand his purpose of being here is to observe his two peneinei (relatives) who are connected to the Katamak clan to see how well they perform. Chairman Perman, do you have a miscellaneous business?

Chairman Perman: Thank you. Good morning to you, Vice President, Members, and all that are observing our session this morning. Mr. Speaker, my miscellaneous will be regarding Members Communication No. 20-04. The Committee of Health requested the Department to give us some status regarding NCDs. I know that ever since, being in the Nineteenth Congress and now the Twentieth Congress, every time we see a resolution regarding a new funding for data collection and everything. We decided to request the status and this is what they have given us. I want Members to look into it. We are going to have a hearing on this and I am going to wait for our Legal Counsel to get here. After reviewing all the stats and everything, I have more questions and answers right now. So please, Members,

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when we call our hearing with them – I am looking at, for example, the entire state of Pohnpei has obesity, I do not know what they mean about obesity because I know a little bit on that topic because I am considered obese, so maybe I’m not obese but anyways, so this is the report that has been given to us. Please Members, I always remember we were always passing funds from hundreds of thousands to millions regarding data collection and this is what is being provided to us. So this is what I wanted to share to all Members, thank you Mr. Speaker.

Speaker Simina: Thank you, Chairman Perman. We thank you for sharing this to Members of Congress. I know it was addressed to you and now you share with us, and these are important information – I mean, these are good. I hope we can all look at all our states affairs in term of the NCDs that are becoming prevalent in our nation. Okay, Chairman Gouland.

Chairman Gouland: Thank you very much, Mr. Speaker. I wanted to deeply express my appreciation to my good colleagues who are joining the Chairman of T&C Committee to the Executive. Our FSM Delegation, we have a bilateral meeting with the U.S. and I would like to see on records that I really appreciate the deliberation from the Members of our Congress: Vice Speaker Moses, Chairman Welly, Chairman Urusemal, Vice Chairman Konman, as well as your Chairman here. Our appreciation and thank you very much. Let’s give them a round of applause (applause).

Speaker Simina: Well, it remains to be seen how successful you are and I mean that. Any other Miscellaneous Business? Yes, Senator Konman.

Senator Konman: Thank you very much, Mr. Speaker. I would like to recognize one of my dear friend and strong supporter who is also with us in the gallery. David David from Uman. I kindly ask that we give him a round of applause, thank you (applause).

Speaker Simina: Welcome David, it’s nice to have you around and any other Miscellaneous Business?

Acting Floor Leader Urusemal: Not to prolong the session any more than it already has but I have something to share as well.

Speaker Simina: You won’t prolong the session. You have the floor.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I just wish to associate myself with the introduction made relating to the student that just completed his studies at the University of Hawaii at Hilo. I congratulate the individual, and instead of encouraging him to find jobs now – perhaps for the summer, yes – I would instead encourage him to continue to further his education in that area. We really need, it may be too late, economists that are real, down-to-earth economists that can also not only share problems about our economy but also solutions. We also had economists in the past where they just talk about, “Oh, you should do this… You should do that…” but they never ,though they talk about problems, and offer solutions. So I would encourage the individual as long as we continue to put money into

July 07, 2017 CONGRESSIONAL JOURNAL – DAY TWO – 1SS – 20CFSM

graduate studies to look at furthering his education. Go for Masters degree and up to Ph.D. to get a real good education in Economics. Thank you, Speaker.

Speaker Simina: Thank you, Chairman Urusemal. There is no such thing as down-to- earth honest economist. We only have economist.

Acting Floor Leader Urusemal: I thought only lawyers are liars.

Speaker Simina: I’m not saying they are liars but thank you very much. That’s very true. We need to have our up and coming young generations to go into this necessary fields that we are lacking, and we need to continue to encourage that. Okay, any other Miscellaneous Business? Short recess.

Speaker Simina declared the Congress recessed at 11:09 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:13 a.m.

Speaker Simina: Congress comes back to session. We’re still on Miscellaneous Business. If no more Miscellaneous Business, Announcements.

ANNOUNCEMENTS

Speaker Simina: Chairman Welly.

Chairman Welly: Thank you, Mr. Speaker. As you indicated earlier, the flight today was postponed so the Committee to Wait on the President is postponed to 12:30 p.m. All Members are invited to come. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Welly who is also the Chairman of the Committee to Wait on the President. He is or the President is inviting all the Members to join. We have those outstanding, important issues that we need to discuss with the President so this is a good time to do so.

Acting Floor Leader Urusemal: Point of information, Mr. Speaker.

Speaker Simina: State your point.

Acting Floor Leader Urusemal: I wonder if the Chairman would be amendable to go in there at 11:30 a.m. and have lunch and then while having lunch we will be waiting for the President to arrive at 12:30 p.m.

Speaker Simina: I don’t know. That is a point of information. Maybe the Chairman can answer it.

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Chairman Welly: The meeting will start at 12:30 p.m. So lunch will be served at 12:30 p.m., also.

Speaker Simina: Lunch will be served at 12:30 p.m., Acting Floor Leader. Chairman Figir.

Chairman Figir: Just a reminder to remind your Committee on Ways and Means of the public hearing at 1:30 p.m., today and tomorrow. Speaker Simina: Thank you, Chairman Figir. Take note, members of the Committee on Ways and Means for the hearing today at 1:30 p.m. and tomorrow at the same time. Chairman Perman.

Chairman Perman: Thank you. Still, no announcements from your Committee on H&SA.

Speaker Simina: Thank you, Chairman Perman. Chairman Romolow. Chairman Panuelo.

Chairman Panuelo: No announcements, Mr. Speaker.

Speaker Simina: Chairman Gouland.

Chairman Gouland: We have a lot of announcements today but they are still pending. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Gouland. Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. Your Committee on Education is now in sleeping and waiting mode. We are waiting for the Department of Education to submit what they asked us to act upon as soon as possible. It is not here with us and we cannot act before they submit something. So there is no meeting until then. Thank you.

Speaker Simina: Thank you, Chairman Urusemal. Vice Speaker Moses. Senator Neth. Senator Aritos.

Senator Aritos: Thank you, Mr. Speaker. To all the Chuuk Delegation, we will meet with Vice President Choram at 6:30 p.m., today, at River Side. Thank you. Speaker Simina: Thank you, Senator Aritos. Senator Konman. Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I move that this Congress stand in recess until Monday, July 10, 2017, at 10:00 a.m., in the morning.

Vice Speaker Moses: Second.

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Speaker Simina: It has been moved and seconded that Congress stand in recess until 10:00 a.m., Monday. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress now stands in recess until 10:00 a.m., Monday morning.

Speaker Simina declared that the Congress stand in recess at 11:17 a.m., Friday, July 07, 2017, until Monday, July 10, 2017, at 10:00 a.m.

CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY THREE Saturday, July 08, 2017

No Session

DAY FOUR Sunday, July 09, 2017

No Session

DAY FIVE Monday, July 10, 2017

The Fifth Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:23 a.m., Monday, July 10, 2017.

The Acting Speaker Esmond B. Moses presided.

A moment of silent prayer was observed.

The Chief Clerk yielded the floor to the Assistant Chief Clerk to do roll call of Members.

The Assistant Chief Clerk called the roll. Eleven Members were present; Floor Leader Harper and Speaker Simina were excused; Senator Panuelo was late.

Chairman Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-49 - (dated 07/05/17and received 07/07/17) – Transmitting for review and action of Congress a bill to amend title 2 of the FSM Code in order to upgrade the Office of the Environment and Emergency Management (OEEM) by dissolving it and creating a new department to be vested with the duties and responsibilities, including climate change, held by the OEEM.

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-No. 20-50 - (dated 07/06/17 and received 07/07/17) – Transmitting a bill to lift the reprogramming restriction under the fiscal year 2017 annual budget, to accommodate the Office of Public Defender.

-No. 20-51 - (dated 07/06/17 and received 07/07/17) – Transmitting a resolution for the acceptance of a foreign assistance in the amount of $240,000 from the U.S. Agency for International Development (USAID) to support the project titled: “Institutional Strengthening in PICs to Adapt to Climate Change”, which will be implemented through the Secretariat of the Pacific Community (SPC).

Acting Speaker Moses: Make the necessary assignments, Chief Clerk. Next item.

FSM SUPREME COURT COMMUNICATIONS

None

MEMBER COMMUNICATIONS

None

DEPARTMENTAL COMMUNICATIONS

None

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

-No. 20-13 - (dated 07/05/17 and received 07/07/17) – From Mr. Eugene Pangelinan, Executive Director, NORMA, submitting a report on the outcome of the recent bilateral fisheries access consultations with Japan, held in Colonia, Yap, from June 25-27, 2017.

Acting Speaker Moses: Make the necessary assignments, Chief Clerk. Next item.

STATE COMMUNICATIONS

None

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

FOREIGN GOVERNMENT COMMUNICATIONS

None

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

None

Acting Floor Leader Urusemal: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:27 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:27 a.m.

Acting Speaker Moses: Congress comes back to session. Next item.

SPECIAL COMMITTEE REPORTS

-No. 20-02 - (By the Hon. Paliknoa K. Welly, Chairman, Committee to Wait on the President.)

Acting Speaker Moses: Chairman Welly, you have the floor.

Chairman Welly: Thank you. The Committee met with the President and Vice President on July 07, 2017, at 12:30 p.m., in the President’s Meeting Room. I was assigned as the Chairman of the Committee to Wait on the President.

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:29 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:29 a.m.

Acting Speaker Moses: Congress comes back to session.

Chairman Welly: We’re in discussion now, right?

Acting Speaker Moses: Short recess.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Acting Speaker Moses declared the Congress recessed at 10:29 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:29 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Welly.

Chairman Welly: Thank you. I move for adoption of Special Committee Report No. 20-02.

Chairman Figir: Second.

Acting Speaker Moses: It’s been moved and seconded that we adopt Special Committee Report No. 20-02. Discussion?

Chairman Welly: Thank you, Mr. Acting Speaker. The Committee met with the President and Vice President on July 07, 2017, in the President’s Conference Room. I was assigned as the Chairman of the Committee. Other Members of Congress were also present in that meeting. I want to thank them for joining us in the discussion. First item that was brought up by the President was the Army Corps of Engineer and its assignment to work with the PMU Office. The President expressed his disappointment of Army Corps of Engineer to work with the PMU. Other issues were discussed in the meeting including the suspension of Compact Infrastructure Grant Funding, World Bank Open Access Entity (OAE) Funding and FSM Telecom, Joint Committee on Compact Review and Planning (JCRP), Supplemental Budget, and a need for a new Government ship. Speaker suggested the new Government ship that maybe this should be included in the FY18 Budget but not coming from money that is already with the Government. Details and information regarding the meeting is in the Report itself, Special Committee Report No. 20-02, for other Members to look at it. That is my oral presentation of the Report submitted by the Committee to Wait on the President. I will yield the floor to other members of the Committee if they want to further clarify the Report being reported. Thank you.

Acting Speaker Moses: Thank you, Chairman Welly. Any further discussion?

Chairman Figir: Question.

Chairman Perman: Second.

Acting Speaker Moses: Question has been called for. If there are no objections, we will vote on the said Report (Special Committee Report No. 20-02). All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Report, Special Committee Report No. 20-02, is now adopted. Next item.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to the Referral Sheet No. 20-15. TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-15, DAY 05, MONDAY, 07/10/17, AT 10:00 A.M.

C.B. NO. SUBJECT COMMITTEE 20-49 To appropriate the sum of $4,200,00 from the General W&M Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, for the purpose of funding public projects and social programs for the people of Yap, Kosrae, Pohnpei and Chuuk States, and for other purposes. 20-50 To further amend Public Law No. 18-11, as amended by W&M Public Laws Nos. 18-44, 18-81, 19-33, 19-106, 19-128, 19-134, 19-138 and 20-11, by amending section 2 thereof, to change the allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes. 20-51 To further amend Public Law No. 18-99, as amended by W&M Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 and 20-18, by amending section 6 thereof, to change the allottee of funds previously appropriated therein to fund public projects and social programs for the people of the state of Pohnpei, and for other purposes. 20-52 To further amend Public Law No. 19-89, as amended by W&M Public Laws Nos. 19-94, 19-127, 19-151, 19-159 and 20-06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs in the state of Pohnpei, and for other purposes. 20-53 To further amend Public Law No. 19-121, as amended W&M by Public Laws Nos. 19-130, 19-142, 19-145, 19-158 and 20-09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes. 20-54 To convert unpaid balances of prior loans from the W&M

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

National Government of the Federated States of Micronesia to the National Fisheries Corporation funded, pursuant to Public Law No. 6-69 and Public Law No. 9-78, into grants for the purposes for which such loans were provided, and for other purposes. C.R. NO. SUBJECT COMMITTEE 20-17 Setting the ceiling of the total funds estimated to be NONE available for appropriation from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017. 20-18 Approving and accepting a grant in the amount of H&SA $250,000 from the U.S. Department of Health and Human Services Substance Abuse and Mental Health Services Administration, to support and fund FSM Department of Health and Social Affairs Opioid State Targeted Response Project, including all the terms and conditions of the assistance. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-48 (dated 07/05/17and received 07/06/17) – Transmitting H&SA for review and action of Congress a proposed resolution approving a grant assistance made available by the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Administration in the amount of $250,000 to fund the FSM Department of Health and Social Affairs Opioid State Targeted Response Project managed by the FSM Department of Health and Social Affairs, Substance Abuse and Mental Health Program. MEMBER COMM. SUBJECT COMMITTEE NO. 20-04 (dated and received 07/06/17) – From the Hon. Ferny S. INFO. Perman, Chairman, Committee on Health & Social Affairs, attaching a memorandum on health related issues and indicators in the form of comparable data for the years 2012 through 2016 for the FSM States, from Mrs. Magdalena A. Walter, Secretary, Department of Health & Social Affairs. AGENCY OR SUBJECT COMMITTEE GOVERNMENTAL AUTHORITY COMM. NO. 20-12 (dated 06/20/17 and received 07/06/17) – From Mr. SPECIAL COMMITTEE Andrew R. Yatilman of the Office of Environment & ON CLIMATE Emergency Management, submitting a copy of the FSM CHANGE AND National Disaster Response Plan (FSM-NRDP) 2016 for ENVIRONMENTAL reference. ISSUES

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

FOREIGN SUBJECT COMMITTEE GOVERNMENT COMM. NO. 20-09 (dated 07/05/17 and received 07/06/17) – From the Hon. INFO. Norihisa Tamura, President, Japanese Parliamentarian League for the World Health Organization, National Diet of Japan, inviting Speaker to attend the Third Meeting of the Asia-Pacific Parliamentarian Forum on Global Health.

Acting Speaker Moses: Committee members, please take note of the Referral Sheet No. 20-15. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

None

RESOLUTION CALENDAR

None

Chairman Gouland: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Gouland, you have the floor.

Chairman Gouland: Thank you, Mr. Acting Speaker. I move that we go back to item Eighteen, Bill Calendar.

Acting Speaker Moses: If there is no objection, we will now move back to Bill Calendar.

BILL CALENDAR

Acting Speaker Moses: Chairman Gouland, you have the floor.

Chairman Gouland: Mr. Acting Speaker, if I may not be out of order, I move that we withdraw C.B. No 20-49 and place it on the Order of Business for today.

Chairman Perman: Second. Chairman Figir: Recess.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Acting Speaker Moses declared the Congress recessed at 10:33 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:34 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Gouland, you have the floor.

Chairman Gouland: I move to withdraw my motion.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the motion be withdrawn. I don’t think we voted on that particular motion before. Any discussion on that? If none, next item.

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal, you have the floor.

Chairman Urusemal: Thank you, Mr. Acting Speaker. I move to withdraw and place two Bills on today’s Calendar for action, if I may.

Acting Speaker Moses: Go ahead.

Chairman Urusemal: Thank you. I move to withdraw and place C.B. Nos. 20-50 and 20-51 on today’s Calendar for action.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress place C.B. Nos. 20-50 and 20-51 on today’s Calendar.

Acting Floor Leader Urusemal: I also move that the relevant section of our rules that may impede our action on the Bills (C.B. Nos. 20-50 and 20-51) be suspended.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the relevant rules be suspended that may impede our action on the withdrawals of the two Bills. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The rules are now suspended. We now have Bills Nos. 20-50 and 20-51 moved for placement. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. We now have Bills Nos. 20-50 and 20-51 on the Bill Calendar. Short recess.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Acting Speaker Moses declared the Congress recessed at 10:36 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:36 a.m.

Senator David W. Panuelo entered and took seat in the Chamber at 10:36 a.m.

Acting Speaker Moses: Congress comes back to session. Chief Clerk, please read the first Bill (C.B. No. 20-50).

C.B. No. 20-50 (1st Reading): To further amend Public Law No. 18-11, as amended by Public Laws Nos. 18-44, 18-81, 19-33, 19-106, 19-128, 19-134, 19-138 and 20-11, by amending section 2 thereof, to change the allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes.

Acting Speaker Moses: Discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker, I move for the passage of the said Bill (C.B. No. 20-50) on first reading.

Chairman Figir: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress adopt C.B. No. 20-50. Discussion?

Chairman Gouland: Question.

Acting Speaker Moses: Question has been called for. Debate is closed. It’s a passage on first reading so it will be roll call of Members. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Senator Alik Aye Senator Aritos Aye Senator Figir Aye Senator Gouland Aye Floor Leader Harper Absent Senator Konman Aye Vice Speaker Moses Aye Senator Neth Aye Senator Panuelo Aye Senator Perman Aye

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Senator Romolow Aye Senator Urusemal Aye Senator Welly Aye Speaker Simina Absent

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: Thank you. Congressional Bill No. 20-50 is passed on first reading. Next bill.

C.B. No. 20-51 (1st Reading): To further amend Public Law No. 18-99, as amended by Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 and 20-18, by amending section 6 thereof, to change the allottee of funds previously appropriated therein to fund public projects and social programs for the people of the state of Pohnpei, and for other purposes.

Chairman Figir: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Figir, you have the floor.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of the said Bill (C.B. No. 20-51) on first reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-51 on first reading. Discussion? If none, we will now vote on C.B. No. 20-51. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Senator Alik Aye Senator Aritos Aye Senator Figir Aye Senator Gouland Aye Floor Leader Harper Absent Senator Konman Aye Vice Speaker Moses Aye Senator Neth Aye Senator Panuelo Aye Senator Perman Aye Senator Romolow Aye Senator Urusemal Aye Senator Welly Aye Speaker Simina Absent

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: As a result, Congress now passed C.B. No. 20-51. Next bill.

Chief Clerk: There are none.

Acting Speaker Moses: Next item.

INTRODUCTION OF BILLS

C.B. No. 20-49: Introduced by: Senator Gouland Assigned to: W&M Date introduced: July 10, 2017

To appropriate the sum of $4,200,00 from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, for the purpose of funding public projects and social programs for the people of Yap, Kosrae, Pohnpei and Chuuk States, and for other purposes.

C.B. No. 20-50: Introduced by: Senator Neth Assigned to: W&M Date introduced: July 10, 2017

To further amend Public Law No. 18-11, as amended by Public Laws Nos. 18-44, 18-81, 19-33, 19-106, 19-128, 19-134, 19-138 and 20-11, by amending section 2 thereof, to change the allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes.

C.B. No. 20-51: Introduced by: Senator Neth Assigned to: W&M Date introduced: July 10, 2017

To further amend Public Law No. 18-99, as amended by Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 and 20-18, by amending section 6 thereof, to change the allottee of funds previously appropriated therein to fund public projects and social programs for the people of the state of Pohnpei, and for other purposes.

C.B. No. 20-52: Introduced by: Senator Panuelo Assigned to: W&M Date introduced: July 10, 2017

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

To further amend Public Law No. 19-89, as amended by Public Laws Nos. 19-94, 19-127, 19-151, 19-159 and 20-06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs in the state of Pohnpei, and for other purposes.

C.B. No. 20-53: Introduced by: Senator Panuelo Assigned to: W&M Date introduced: July 10, 2017

To further amend Public Law No. 19-121, as amended by Public Laws Nos. 19-130, 19-142, 19-145, 19-158 and 20-09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes.

C.B. No. 20-54: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 10, 2017

To convert unpaid balances of prior loans from the National Government of the Federated States of Micronesia to the National Fisheries Corporation funded, pursuant to Public Law No. 6-69 and Public Law No. 9-78, into grants for the purposes for which such loans were provided, and for other purposes.

INTRODUCTION OF RESOLUTIONS

C.R. No. 20-17: Introduced by: Senator Figir Assigned to: NONE Date introduced: July 10, 2017

Setting the ceiling of the total funds estimated to be available for appropriation from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017.

C.R. No. 20-18: Introduced by: Floor Leader Harper (By request) Assigned to: H&SA Date introduced: July 10, 2017

Approving and accepting a grant in the amount of $250,000 from the U.S. Department of Health and Human Services Substance Abuse and Mental Health Services Administration, to support and fund FSM Department of Health and Social Affairs Opioid State Targeted Response Project, including all the terms and conditions of the assistance.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Acting Speaker Moses: Any miscellaneous business?

Senator Neth: Mr. Acting Speaker.

Acting Speaker Moses: Senator Neth, you have the floor.

Senator Neth: Thank you. I would like to ask that we recognize the presence of Kenely Marcus and Alter Fredrick that are with us this morning (applause).

Acting Speaker Moses: Thank you, Senator Neth. We always welcome our citizens to come and observe their Congress at work. Any more miscellaneous business?

Chairman Perman: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Perman, you have the floor.

Chairman Perman: Thank you. Good morning to you, Members, and all that are observing the session this morning. Just to add on to the list from Senator Neth, we also have Grace Amaraich, Tommy Dano, and Anderson Roby with us this morning (applause). Thank you.

Acting Speaker Moses: Thank you, Chairman Perman. Any other miscellaneous business?

Senator Konman: Mr. Acting Speaker, point of priviledge.

Acting Speaker Moses: Yes, Senator Konman. You may speak your point.

Senator Konman: Thank you very much, Mr. Acting Speaker. In addition to the introduction that was already presented by my colleagues, I would also like to ask to everybody to recognize two individuals from Chuuk who are also observing our session this morning: Mr. Jesse Laka and Honorable Person Chiren, Speaker Ta Municipal Government in Chuuk State. I kindly ask that we give them a round of applause, thank you (applause). Thank you.

Acting Speaker Moses: Thank you, Senator Konman. It’s always nice to have citizens from other States to visit and observe Congress’s work. Any other miscellaneous business? If there are none, next item.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

ANNOUNCEMENTS

Acting Speaker Moses: Any announcements? Chairman Welly?

Chairman Welly: No announcements from your Committee on External Affairs.

Acting Speaker Moses: Thank you, Chairman Welly. Chairman Figir.

Chairman Figir: Just a reminder to members of your Committee on Ways and Means of the public hearing today at 1:30 p.m., in the Congress Conference Room. All other members are welcome to attend. I believe the hearing is on the Public Auditor’s FY18 Budget. After that, we will talk about Army Corps of Engineers of how much we have to appropriate for the balance of the fiscal year. Thank you.

Acting Speaker Moses: Thank you, Chairman. Members, take note. Chairman Perman.

Chairman Perman: Thank you. The announcement for this morning from your Committee of Health, please look at our advance electronic bulletin board. Our legal staff for our Committee is still off island but I am going to ask our other Lawyer, Jesse, to look into it. I think we have a resolution of $250 thousand for Health. I will work with him today. Please check the bulletin board. Something might come up either tomorrow or Wednesday. Thank you.

Acting Speaker Moses: Thank you, Chairman Perman. Members, please take note of the announcement. Chairman Romolow.

Chairman Romolow: Thank you. Your Committee on J&GO will hold a budget hearing for Postal Service and Election Office tomorrow at our allotted time, in the afternoon. Thank you.

Acting Speaker Moses: Thank you, Chairman Romolow. Members, take note. Chairman Panuelo.

Chairman Panuelo: May I ask for a short recess?

Acting Speaker Moses declared the Congress recessed at 10:46 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:48 a.m. Acting Speaker Moses: Congress comes back to session. Chairman Panuelo, you have the floor.

Chairman Panuelo: I move that we go back to Bill Calendar.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that we move back to Bill Calendar. Any discussion? If no discussion, we will vote. The motion is to move back to Bill Calendar. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. We are now back to item Eighteen, Bill Calendar.

BILL CALENDAR

Acting Speaker Moses: Chairman Panuelo, you have the floor.

Chairman Panuelo: Thank you, Mr. Acting Speaker and I thank the Members for their patience. I make a motion to withdraw C.B. Nos. 20-52 and 20-53.

Senator Konman: Second.

Acting Speaker Moses: It’s been moved and seconded that Bills Nos. 20-52 and 2-53 be placed on our Bill Calendar for action. I take it that you have consulted with our Chairman on Ways and Means.

Chairman Panuelo: I didn’t. But this is a change of use and it is one that is time sensitive. Thank you, Chairman of Ways and Means.

Acting Speaker Moses: It’s been moved and seconded that we placed C.B. Nos. 20-52 and 20-53 on today’s Bill Calendar.

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you very much. I just wish that the record reflect that the relevant rules that may impede our action on these two Bills (C.B. Nos. 20-52 and 20-53) are still suspended.

Acting Speaker Moses: Let the record reflect that the rules are still suspended on any rule that may impede our action on awaiting the requirements for 24-hour. Any more discussion? Chairman Figir: Mr. Acting Speaker, just a suggestion that in those two Bills (C.B. Nos. 20-52 and 20-53) passed during this morning’s session, I would like to ask the proponent of the Bills (C.B. Nos. 20-52 and 20-53) to look at them so when it comes to second reading, look at the lapse date and perhaps find ways that – this is not only pertains to Pohnpei but for all the other three States. If the lapse date is extended for another two years, be it. But after that, any balance should be put in or automatically go into that state’s subaccount trust fund. Any given state that cannot use or spend its money within four years,

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

how can they do it in another one or two more years? I think what we are doing here is holding up funds that can otherwise be diverted to another useful purposes or save it for the rainy future. Thank you.

Acting Speaker Moses: Thank you, Chairman Figir.

Chairman Gouland: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Gouland.

Chairman Gouland: Thank you, Mr. Acting Speaker. I don’t know what’s the use of changing these (C.B. Nos. 20-52 and 20-53). The two Bills (C.B. Nos. 20-52 and 20-53) are exhausted. There is no balance of the funding. Thank you.

Acting Speaker Moses: Thank you, Chairman Gouland.

Chairman Panuelo: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, I have consulted our legal staff and all the projects pertaining to Pohnpei State has been reviewed by the legal staff and I think it is among the Bills that we are doing to extend the lapse date. But the bills that I am talking about are relatively new. They have not been around too long. So we still have some projects that have not been expended yet.

Chairman Figir: Question.

Acting Speaker Moses: Thank you. Any more discussions? Short recess.

Acting Speaker Moses declared the Congress recessed at 10:53 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:54 a.m.

Acting Speaker Moses: Congress comes back to session. The Chair now recognizes Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I take it that we have agreed to stop debate and therefore I move that C.B. No. 20-52 be passed on first reading. C.B. No. 20-52 (1st Reading): To further amend Public Law No. 19-89, as amended by Public

Laws Nos. 19-94, 19-127, 19-151, 19-159 and 20-06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

public projects and social programs in the state of Pohnpei, and for other purposes.

Chairman Panuelo: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass Bill No. 20-52 on first reading. Discussion?

Chairman Figir: Question.

Acting Speaker Moses: Question has been called for. We will now vote on Congressional Bill No. 20-52. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: Thank you, Chief Clerk. The Bill, C.B. No. 20-52, is now passed on first reading. Next bill.

C.B. No. 20-53 (1st Reading): To further amend Public Law No. 19-121, as amended by

Public Laws Nos. 19-130, 19-142, 19-145, 19-158 and 20-09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes.

Chairman Figir: Mr. Acting Speaker. Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you. I move that Congress pass on first reading C.B. No. 20-53.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Chairman Panuelo: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-53 on first reading. Discussion?

Chairman Figir: Question.

Chairman Perman: Second.

Acting Speaker Moses: Question has been called for. If there is no objection, we will vote on Congressional Bill No. 20-53 by roll call of Members. Chief Clerk.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: For that reason, Congressional Bill No. 20-53 has passed on first reading. Next bill.

Chief Clerk: There are none, Mr. Acting Speaker.

Acting Speaker Moses: If there may be no objection, we will go back down to item number Twenty-three, Announcements. Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, I have no announcements but I would like to take this time to introduce Mr. Ieske Iehsi, Noahs Pingelap. I ask that we give him a round of applause (applause). Thank you.

July 10, 2017 CONGRESSIONAL JOURNAL – DAY FIVE – 1SS – 20CFSM

Acting Speaker Moses: Thank you, Chairman Panuelo. Mr. Ieske Ieshi has been a regular to our sessions since the time I’ve been with Congress and I do appreciate his presence. Chairman Gouland.

Chairman Gouland: No announcements.

Acting Speaker Moses: Thank you, Chairman Gouland. Chairman Urusemal. Senator Neth. Senator Alik. Or should I say the new Chairman Alik. Senator Aritos. If there are no more announcements, Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you very much, Mr. Acting Speaker. I move that this Congress stand in recess until tomorrow at 10:00 a.m., in the morning.

Chairman Panuelo: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress stand in recess until tomorrow at 10:00 a.m. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress stands in recess until 10:00 a.m., tomorrow.

Acting Speaker Moses declared that the Congress stand in recess at 10:59 a.m., Monday, July 10, 2017, until tomorrow, Tuesday, July 11, 2017, at 10:00 a.m.

CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY SIX Tuesday, July 11, 2017

The Sixth Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:29 a.m., Tuesday, July 11, 2017.

Acting Speaker Esmond B. Moses presided.

A moment of silent prayer was observed.

The Chief Clerk yielded the floor to the Assistant Chief Clerk to do roll call of Members.

The Assistant Chief Clerk called the roll. Ten Members were present; Senator Alik, Floor Leader Harper, and Speaker Simina were excused; Senator Figir was late.

Acting Speaker Moses: Let the record reflect that we have enough to transact business and also entertain bills on first reading.

Chairman Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:31 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:31 a.m.

Acting Speaker Moses: Congress comes back to session. Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-53 – (dated and received 07/10/17) – Proposing further changes to the personnel budget mainly to reclassify some of the positions in Treasury, Investment and CTA that were not previously reflected in the initial proposed budget.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: Make the necessary assignments, Chief Clerk. Next item.

FSM SUPREME COURT COMMUNICATIONS

None

Chairman Panuelo: Mr. Acting Speaker, point of privilege.

Acting Speaker Moses: Chairman Panuelo, state your point.

Chairman Panuelo: Good morning to you and good morning to all Members. I want to, on our behalf, kindly introduce the Vice President of the Chuuk Senate, the Honorable Ichiro Choram, who is with us this morning. Can we please give him a round of applause? (Applause). Thank you. If I may carry on, Mr. Acting Speaker, also amongst us we see a very diligent staff of the Japan Embassy is Grace Amaraich. Let’s also give her a round of applause (applause). Thank you, Mr. Acting Speaker.

Acting Speaker Moses: Thank you, Chairman Panuelo. It’s always nice to see our citizens observing us during session. Next item.

MEMBER COMMUNICATIONS

None

DEPARTMENTAL COMMUNICATIONS:

-No. 20-11 - (dated and received 07/10/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, advising that the Hon. Leon Malazogu, Ambassador of the Republic of Kosovo to the FSM, will be in Pohnpei from August 7 to 10, 2017 to present his letter of credence, scheduled for August 7, 2017.

Acting Speaker Moses: Make the necessary assignments. Next item.

Senator Isaac V. Figir entered and took seat in the Chamber at 10:33 a.m.

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

None

STATE COMMUNICATIONS

None

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

FOREIGN GOVERNMENT COMMUNICATIONS

None

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

The Chief Clerk called attention to Awaiting List No. 20-07 for Standing Committee Reports, which are awaiting the 24-hour requirement.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION JULY 06, 2017 TO JULY 15, 2017

R E P O R T S A W A I T I N G R E Q U I R E M E N T S

NO. 20-07, 6TH DAY, TUESDAY, JULY 11, 2017, AT 10:00 A.M.

REPORT NO. SUBJECT DATE AND TIME SCR No. 20-12 RE: C.A. No. 20-14, (P.C. No. 20-47), Veto Override 07/11/17 @ 10:00 A.M. (Submitted By: W&M Committee) SCR No. 20-13 RE: C.B. No. 20-34, “A bill for an act to enact a new 07/11/17 @ 10:00 A.M. chapter 1 of title 36 of the Code of the Federated States of Micronesia (Annotated), and to repeal the Existing chapter 1 in its Entirety, to renumber chapter 2 of title 36 of the Code of the Federated States of Micronesia as chapter 3, for the purpose of creating a new FSM National Corporations Law. (Submitted By: R&D Committee)

Acting Speaker Moses: Short recess. Acting Speaker Moses declared the Congress recessed at 10:35 a.m., subject to the call of the Chair.

RECESS

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

The Congress reconvened at 10:36 a.m.

Acting Speaker Moses: Congress comes back to session. We are on item number Fourteen, Standing Committee Reports. Next item.

SPECIAL COMMITTEE REPORTS

None

Chairman Panuelo: Mr. Acting Speaker, I wish to make a motion.

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:36 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:37 a.m.

Acting Speaker Moses: Congress comes back to session. Next item.

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

Chief Clerk called attention to the Referral Sheet No. 20-16.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-16, DAY 06, TUESDAY, 07/11/17, AT 10:00 A.M. C.B. NO. SUBJECT COMMITTEE

20-55 To further amend Public Law No. 19-124, as amended W&M by Public Laws Nos. 19-133, 19-140, 19-150, 20-05 and 20-15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the state of Pohnpei, and for other purposes. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

20-49 (dated 07/05/17 and received 07/07/17) – Transmitting J&GO for review and action of Congress a bill to amend title 2 of the FSM Code in order to upgrade the Office of the Environment and Emergency Management (OEEM) by dissolving it and creating a new department to be vested with the duties and responsibilities, including climate change, held by the OEEM. 20-50 (dated 07/06/17 and received 07/07/17) – Transmitting a W&M bill to lift the reprogramming restriction under the fiscal year 2017 annual budget, to accommodate the Office of Public Defender. 20-51 (dated 07/06/17 and received 07/07/17) – Transmitting a SPECIAL COMMITTEE resolution for the acceptance of a foreign assistance in ON CLIMATE the amount of $240,000 from the U.S. Agency for CHANGE AND International Development (USAID) to support the ENVIRONMENTAL project titled: “Institutional Strengthening in PICs to ISSUES Adapt to Climate Change”, which will be implemented through the Secretariat of the Pacific Community (SPC). AGENCY OR SUBJECT COMMITTEE GOVERNMENTAL AUTHORITY COMM.NO.

20-13 (dated 07/05/17 and received 07/07/17) – From Mr. R&D/INFO. Eugene Pangelinan, Executive Director, NORMA, submitting a report on the outcome of the recent bilateral fisheries access consultations with Japan, held in Colonia,Yap, from June 25-27, 2017.

Acting Speaker Moses: Chairmen and members, please take note. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

C.B. No. 20-50 (2nd Reading): To further amend Public Law No. 18-11, as amended by

Public Laws Nos. 18-44, 18-81, 19-33, 19-106, 19-128, 19- 134, 19-138 and 20-11, by amending section 2 thereof, to change the allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes.

Acting Speaker Moses: Chairman Figir.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Figir: I move for the passage of the Bill (C.B. No. 29-50). Short recess.

Acting Speaker Moses declared the Congress recessed at 10:39 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:44 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Figir.

Chairman Figir: Can we hear the title of the Bill (C.B. No. 20-50)? I move for the passage of the Bill (C.B. No. 20-50).

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:44 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:45 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Figir, you have the floor.

Chairman Figir: Thank you, Mr. Acting Speaker. I move that Congress pass on second reading Congress Bill No. 20-50.

Senator Neth: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on second and final reading C.B. No. 20-50. Discussion?

Chairman Perman: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Perman, you have the floor.

Chairman Perman: Thank you, Mr. Acting Speaker. I have a floor amendment to the said Bill (C.B. No. 20-50). I believe copies have been made and distributed to all Members. It’s a lengthy one so. I so move for its adoption.

Floor Amendment to C.B. No. 20-50 Offered by Senator Ferny S. Perman

C.B. No. 20-50 is hereby amended to read as follows:

1. Title, line 3, delete “section 2’, and insert “section 1 and 2” in lieu thereof.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

2. Title, line 3, before “allottee”, insert “use and”. 3. Page 1, line 1, after “Section 1”, insert the following: “Section 1 of Public Law No. 18-11, as amended by Public Laws Nos. 18-44, 19-128, 19-134 and 20-11, is hereby further amended to read as follows: “Section 1. The sum of $1,680,000, or so much thereof as may be necessary, is hereby appropriated from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2013, for the purpose of funding public projects and social programs in the states of Pohnpei and Yap. The funds shall be apportioned as follows: (1) Pohnpei State...... $ 1,130,000 PROVIDED, HOWEVER, that the funds appropriated in subsections (b)(c)(d) and (e) of this section shall not be allotted until Congress is officially advised that funds improperly disbursed as a result of the line item veto which was reflected in Public Law No. 18-11 are collected. (a) Micronesian Legal Services Corporation...... 130,000 (b) At Large...... 418,000 i. SDA, PICS and CCA schools side walk project...... 195,000 ii. Deketik side walk project...... 100,000 iii. [Kolonia basketball court] Matching fund for Kolonia-China Friendship Center...... 20,000 iv. Pohnpei fishing club vessels’ location devices...... 7,000 v. Pohnpei Biosphere and Marine Protected Areas (purchases of boat and outboard motor)...... 12,000 vi. Madolenihmw road maintenance...... 54,750 vii. Roofing Pohnpei track and field...... 15,000 viii. FSM National Olympic Committee subsidy...... 15,000 (c) Election District No. 1...... 73,750 i. School needs...... 23,750 ii. Road improvement...... 50,000 (d) Election District No. 2...... 200,750 i. Administrative support services ED#2...... 35,000 ii. Nansolohi road paving...... 50,000 iii. Nankepira secondary road supplemental Funding...... 35,000 iv. Nanmand bridges supplemental funding...... 60,000 v. Pohnlangas road upgrade...... 10,750 vi. Municipal Government prior obligations…… 10,000 (e) Election District No. 3...... 201,750 i. PUC Generator maintenance...... 100,000 ii. Medical referral...... 10,000 iii. Our Lady of Mercy (computers and equipment)...... 10,000 iv. Pohnpei Adventist High School (computers and equipment)...... 10,000

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

v. Education travel to conferences and training...... 26,750 vi. Dehpek, Takieu, Parem, Lenger solar street lights...... 40,000 vii. Pohnpei Island Food Community...... 5,000 viii. Community centers improvement...... 5,000 (f) Other expended public projects and social programs ...... $ 105,000 (2) Yap State ...... $ 550,000 i. Fuel for the Field Trip Ship...... 50,000 ii. Meerur seawall project...... 19,000 iii. Other expended public projects and social programs...... 481,000” 4. Page 2, line 15, delete “section 2”, and insert “section 3” in lieu thereof.

Date: July 11, 2017 Introduced by: /s/ Ferny S. Perman Ferny S. Perman

Purpose of Amendment: To change the use of funds under this act for Pohnpei State.

Chairman Panuelo: Second.

Acting Speaker Moses: It’s been moved and seconded that the floor amendment by Chairman Perman be adopted. Discussion?

Chairman Gouland: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:46 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:47 a.m.

Acting Speaker Moses: Congress comes back to session.

Chairman Panuelo: Mr. Acting Speaker, point of privilege.

Acting Speaker Moses: Chairman Panuelo, state your point.

Chairman Panuelo: Mr. Acting Speaker, let me kindly recognize a very important leader, Traditional Leader, who is with us this morning. On behalf of Pohnpei Delegation, on all our behalf, Members of Congress, let us recognize Ispahu wasa lapalap, Nahnmwarki of Madolenihmw, who is with our very own President, Peter M. Christian, observing our session this morning. Ispahu Madolenihmw, Nahnmwarki of Madolenihmw, has been guiding Pohnpei’s development in every way. We want to thank him for his presence and all

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

the individuals who have accompanied him this morning. May I ask that we all, including our very own President, to please welcome Ispahu Madolenihmw, Mr. Kerpet Hebel who has blessed us with his presence in the Chamber this morning. Let’s kindly give him a round of recognition (applause). Thank you, Mr. Acting Speaker.

Acting Speaker Moses: Thank you for that, Chairman Panuelo. Short recess.

Acting Speaker Moses declared the Congress recessed at 10:48 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:49 a.m.

Acting Speaker Moses: Congress comes back to session. We are on the amendment offered by Chairman Perman. It’s quite lengthy so we’ll waive the reading of the amendment. Discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Yes.

Acting Floor Leader Urusemal: No objection but I rise that, if I may continue the point of privilege –

Acting Speaker Moses: State your point.

Acting Floor Leader Urusemal: Yes and thank you, Mr. Acting Speaker. In the same spirit that was made by Chairman Panuelo, I would like this Congress to recognize our own President, His Excellency, President Peter M. Christian, who is also sitting as mentioned by Chairman Panuelo in the gallery (applause).

Acting Speaker Moses: Thank you Chairman Urusemal.

Chairman Panuelo: Mr. Acting Speaker, if I may. I was going to continue but you went on so I was trying to be patient on coming to recognize our President. I thank Chairman Urusemal. If I may continue, Acting Speaker, we have others that have joined the Nahnmwarki this morning. We have Nahlaimw Madolenihmw whose name is Tadasi Sulten. Let’s also give him a round of recognition, please (applause). Thank you. We also have Wensner John, Lepen Ohwa and Vice Speaker of Menin Tien Sapw Madolenihmw Municipal Government. Can we also give him a round of recognition, please? (Applause). Good friends, Romeo Walter, Salapat Madolenihmw and Odensi Hebel, are also with us. I am not sure, there is no title but let’s make sure we give them a round of recognition (applause). Thank you.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: Thank you, Chairman Panuelo. It’s always nice to have our Traditional Leaders paying attention to what we do in this Chamber. We are now on the offered amendment by Chairman Perman on C.B. No. 20-50. Any further discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: I move for a short recess.

Acting Speaker Moses declared the Congress recessed at 10:51 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:55 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Urusemal, you have the floor.

Acting Floor Leader Urusemal: Thank you very much, Mr, Acting Speaker. I have an oral amendment that I wish to make on the amendment proposed by Chairman Perman. Page 2, under the Yap State public projects, under item 2(ii), delete “Pre” and just capital “m” so it will read “Meerur seawall project.” There is nothing about “Pre’. I so move, Mr. Acting Speaker.

Senator Perman: Second.

Acting Speaker Moses: It has been moved and seconded that the oral amendment offered by Chairman Urusemal be adopted. If there is no objection, we will vote. All those in favor of the motion to adopt the oral amendment say ‘aye’ – opposed say ‘nay’. The motion is carried. The amendment by Chairman Urusemal to the offered amendment by Chairman Figir (Perman) is now adopted. Discussion on the main amendment?

Acting Floor Leader Urusemal: Mr. Acting Speaker, I just want the record to reflect that the amendment is proposed by Chairman Perman and that the relevant rules that may impede our action on the bill on second reading especially the substantive amendment on second reading be suspended.

Chairman Perman: Second.

Acting Speaker Moses: It has been moved and seconded that the rules that may impede our action on substantive amendment on second and final reading be suspended. Any objection? If none, let’s vote. All those in favor of the motion to suspend that rules say ‘aye’ – opposed say ‘nay’. The motion is carried. The rules are now suspended. Discussion?

Chairman Perman: Question.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: Question has been called for. If there is no objection, we will vote. All those in favor of the proposed amendment by Chairman Perman on C.B. No. 20-50 say ‘aye’ – opposed say ‘nay’. The motion is carried. We now have C.B. No. 20-50, CD1. Discussion?

Chairman Romolow: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote by Delegations. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: Congress has now passed on second and final reading C.B. No. 20-50, CD1. Next bill.

C.B. No. 20-51 (2nd Reading): To further amend Public Law No. 18-99, as amended by

Public Laws Nos. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 and 20-18, by amending section 6 thereof, to change the allottee of funds previously appropriated therein to fund public projects and social programs for the people of the state of Pohnpei, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of C.B. No. 20-51 on second and final reading.

Chairman Romolow: Second.

Acting Speaker Moses: It has been moved and seconded that we pass on second and final reading C.B. No. 20-51. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote by Delegations. Chief Clerk, please call the roll.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: Thank you, Chief Clerk. Congress has now passed on second and final reading C.B. No. 20-51.

Chairman Romolow: Mr. Acting Speaker, point of privilege.

Acting Speaker Moses: Chairman Romolow, state your point.

Chairman Romolow: Thank you. I wish to rise on a point of privilege to introduce an individual who just walked in our gallery this morning. May I ask that we recognize the presence of our very own Election Director, the Honorable Tony Otto? (Applause).

Acting Speaker Moses: Thank you, Chairman Romolow. Next bill.

C.B. No. 20-52 (2nd Reading): To further amend Public Law No. 19-89, as amended by Public Laws Nos. 19-94, 19-127, 19-151, 19-159 and 20-06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs in the state of Pohnpei, and for other purposes.

Chairman Gouland: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Gouland.

Chairman Gouland: Thank you, Mr. Acting Speaker. With all due respect to my good Chairman here, Chairman Panuelo, we had and agreement to defer the two Bills (C.B. Nos. 20-52 and 20-53) to tomorrow’s Calendar. So, Mr. Acting Speaker, I move to defer C.B. Nos. 20-52 and 20-53 to tomorrow’s Calendar. I so move.

C.B. No. 20-53 (2nd Reading): To further amend Public Law No. 19-121, as amended by

Public Laws Nos. 19-130, 19-142, 19-145, 19-158 and 20- 09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes.

Chairman Panuelo: Second.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: It has been moved and seconded that C.B. Nos. 20-52 and 20- 53 be deferred to tomorrow’s Calendar. Any discussion? If none, let’s vote. All those in favor of the motion to defer C.B. Nos. 20-52 and 20-53 say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bills, C.B. Nos. 20-52 and 20-53, are deferred to tomorrow’s Calendar. Next bill.

Chief Clerk: There are none, Mr. Acting Speaker.

Chairman Perman: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Perman.

Chairman Perman: Thank you, Mr. Acting Speaker. I would like to withdraw and place C.B. No. 20-55 on the Bill Calendar for action. I so move, Mr. Acting Speaker.

Senator Neth: Second.

Acting Speaker Moses: It’s been moved and seconded that C.B. No. 20-55 be withdrawn and placed on today’s Calendar.

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I move that the relevant rules that may impede our action on taking care of business be suspended.

Chairman Romolow: Second.

Acting Speaker Moses: It’s been moved and seconded that any relevant rules that may impede our action on placement of bills be suspended. Any discussion? If no discussion, let’s vote. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The rules are now suspended. Any discussion on placement of the Bill (C.B. No. 20-55)? If none, let’s vote. All those in favor of the motion to place C.B. No. 20-55 say ‘aye’ – opposed say ‘nay’. The motion is carried. We now have on the Calendar C.B. No. 20-55. Chairman Figir.

Chairman Figir: I move for passage on first reading.

C.B. No. 20-55 (1st Reading): To further amend Public Law No. 19-124, as amended by

Public Laws Nos. 19-133, 19-140, 19-150, 20-05 and 20- 15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the state of Pohnpei, and for other purposes.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that we pass C.B. No. 20-55. Any discussion? If no objection, we will vote on the Bill (C.B. No. 20-55) on first reading. Chief Clerk, call the please by Members.

The Chief Clerk took the roll call by Members.

Senator Alik Absent Senator Aritos Aye Senator Figir Aye Senator Gouland Aye Floor Leader Harper Absent Senator Konman Aye Vice Speaker Moses Aye Senator Neth Aye Senator Panuelo Aye Senator Perman Aye Senator Romolow Aye Senator Urusemal Aye Senator Welly Aye Speaker Simina Absent

Chief Clerk: Mr. Acting Speaker, eleven Members voted for, three absent.

Acting Speaker Moses: Congress has passed on first reading C.B. No. 20-55. Next bill.

Chief Clerk: There are none, Mr. Acting Speaker.

Acting Speaker Moses: Next item.

RESOLUTION CALENDAR

None

INTRODUCTION OF BILLS

C.B. No. 20-55: Introduced by: Senator Perman Assigned to: W&M Date introduced: July 11, 2017 To further amend Public Law No. 19-124, as amended by Public Laws Nos. 19-133, 19-140, 19-150, 20-05 and 20-15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the state of Pohnpei, and for other purposes.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Figir: Short recess. Acting Speaker Moses declared the Congress recessed at 11:07 a.m., subject to the call of the Chair. RECESS The Congress reconvened at 11:11 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Urusemal, you have the floor.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I move that we go back to item number Eighteen, Bill Calendar.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that we go back to Bill Calendar. Any discussion? Any objection? If none, we’ll vote. All those in favor of the motion to move back to item number Eighteen, Bill Calendar, say ‘aye’ –

Chairman Gouland: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:12 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:12 a.m.

Acting Speaker Moses: Congress comes back to session. All those in favor of the motion moving back to Bill Calendar say ‘aye’ – opposed say ‘nay’. The motion is carried. We are now back to item number Eighteen, Bill Calendar.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I move to withdraw and place the following Bills on the Calendar for action: C.B. Nos. 20-45, 20-46, 20-47, 20- 48, and 20-51. I so move.

Chairman Perman: Second.

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:13 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:15 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Urusemal, you have the floor.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Floor Leader Urusemal: Thank you very much, Mr. Acting Speaker. I goofed on the first attempt. Let me now move to place the following Bills on today’s Calendar for action: C.B. Nos. 20-44, 20-45, 20-46, 20-47, 20-48, and 20-56. I so move.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that C.B. Nos. 20-44, 20-45, 20-46, 20-47, 20-48, and 20-56 be placed on the Calendar for action.

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Yes?

Acting Floor Leader Urusemal: I also move that the relevant rules that may impede our action on these Bills (C.B. Nos. 20-44, 20-45, 20-46, 20-47, 20-48, and 20-56) be suspended.

Acting Speaker Moses: Let the record reflect that the rules that may impede our action are suspended. Any discussion?

Chairman Perman: Short recess, Mr. Acting Speaker.

Acting Speaker Moses declared the Congress recessed at 11:16 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:17 a.m.

Acting Speaker Moses: Congress comes back to session. Any discussion on placement of those Bills (C.B. Nos. 20-44, 20-45, 20-46, 20-47, 20-48, and 20-56)? If none, let’s vote. All those in favor of the motion to place those Bills (C.B. Nos. 20-44, 20-45, 20- 46, 20-47, 20-48, and 20-56) on today’s Calendar say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bills (C.B. Nos. 20-44, 20-45, 20-46, 20-47, 20-48, and 20-56) are now placed on the Bill Calendar for action. Chief Clerk, first bill.

C.B. No. 20-44 (1st Reading): To further amend Public Law No. 19-10, as amended by

Public Laws Nos. 19-26, 19-42, 19-51, 19-56, 19-72, 19-78, 19-96, 19-132, 19-163 and 20-03, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in each of the states, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-44) on first reading.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Gouland: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-44 on first reading. Discussion?

Chairman Figir: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-44. Roll call, Chief Clerk.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-44 on first reading. Next bill.

C.B. No. 20-45 (1st Reading): To further amend Public Law No. 17-68, as amended by

Public Laws Nos. 17-71, 17-81, 17-84, 17-89, 17-90, 18-03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, 18-95, 19-16, 19-47, 19-87, 19-98 and 19-123, by amending section 6 therein, for the purpose of changing the lapse date of certain funds previously appropriated to fund public projects and social programs in each of the states, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of the said Bill (C.B. No. 20-45) on first reading.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on first reading C.B. No. 20-45. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-45. Chief Clerk, roll call.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-45 on first reading. Next bill.

C.B. No. 20-46 (1st Reading): To further amend Public Law No. 19-60, as amended by Public Laws Nos. 19-71, 19-80, 19-103, 19-148 and 19-165, by amending section 6 thereof, to change the lapse date of certain funds previously appropriated therein, for the purpose of funding essential government functions, programs, projects and activities in each of the states, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move for the passage of the said Bill (C.B. No. 20-46) on first reading.

Acting Floor Leader Urusemal: Second.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-46 on first reading. Discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I believe I have a short proposed floor amendment to the Bill (C.B. No. 20-46). It has been printed, duplicated, and for interest of time, I move to suspend the reading of the proposed amendment.

Floor Amendment to C.B. No. 20-46 Offered by Senator Joseph J. Urusemal

C.B. No. 20-46 is hereby amended to read as follows:

1. Title, line 2, delete “section 6”, and insert “sections 2 and 6” in lieu thereof. 2. Title, line 3, before “lapse date”, insert “use of certain funds previously appropriated therein for Yap State and”. 3. Page 1, line 1, after “Section 1”, insert the following: “Section 2 of Public Law No. 19-60, as amended by Public Laws Nos. 19-71, 19- 103, 19-148 and 19-165, is hereby further amended to read as follows: Section 2. Of the sum of $1,600,000 appropriated by this act, $300,000 is apportioned to fund essential government functions, programs and activities in the state of Yap. (1) State of Yap...... $ 300,000 (a) [Payment of patients’ debts from October 2010 to March 2017 to Yap Memorial Hospital] Chronic Medicine Refill for both insured and non-insured patients...... 180,000 (b) Fuel/Provisioning for the FSM operated vessels...... 120,000” 4. Page 2, line 17, delete “section 2”, and insert “section 3” in lieu thereof.

Date: July 11, 2017 Introduced by: /s/ Joseph J. Urusemal Joseph J. Urusemal Purpose of amendment: To change the use of funds under this act for Yap State.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the floor amendment by Chairman Urusemal be adopted on C.B. No. 20-46. Let the record reflect that the reading of the proposed amendment is suspended. Discussion? If no discussion, we will vote on the floor amendment by Chairman Urusemal on C.B. No. 20-46. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. We now have C.B. No. 20-46, CD1. We are still on discussion of the Bill (C.B. No. 20-46, CD1). If no discussion, we will vote by roll call. Chief Clerk, please call the roll.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-46, CD1 on first reading. Next bill.

C.B. No. 20-47 (1st Reading): To further amend Public Law No. 19-64, as amended by Public Laws Nos. 19-81, 19-97, 19-120 and 19-137, by amending section 2 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei, to correct technical errors, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of the Bill (C.B. No. 20-47) on first reading. Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. NO. 20-47 on first reading. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If there is no objection, we will vote by roll call of Members on C.B. No. 20-47 on first reading.

The Chief Clerk took the roll call by Members.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-47 on first reading. Next bill.

Chairman Panuelo: Mr. Acting Speaker, point of privilege, please.

Acting Speaker Moses: State your point, Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, I know that we have an official and a friend who are observing our session today. Please kindly allow me to introduce them. We have a really good friend and a municipal Chief of Kitti Municipal Government who is with us. May we please give the Honorable Tony Sarapio, Luhkenmoanlap Kitti, a round of applause and thank him for coming to observe our session? (Applause). Thank you. Mr. Acting Speaker, if I may continue. Also with him is Berny Mihkel (Benance) who is a retired Bus Driver. Let’s thank him for the service he has given to Pohnpei State and welcome him to the Chamber. Let’s give him a round of applause (applause). Thank you, Mr. Acting Speaker.

Acting Speaker Moses: Thank you, Chairman Panuelo. It’s always nice to have our citizens especially leaders of the Local Governments observe our session. Next bill.

C.B. No. 20-48 (1st Reading): To further amend Public Law No. 18-117, as amended by

Public Laws Nos. 18-120, 19-04, 19-08, 19-35, 19-49, 19-59, 19-76 and 19-102, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the states of Yap, Kosrae, Pohnpei and Chuuk, and for other purposes.

Acting Speaker Moses: Chairman Figir.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-48) on first reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on first reading C.B. No. 20-48. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will now vote by roll call of Members on C.B. No. 20-48. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-48 on first reading. Next bill.

C.B. No. 20-56 (1st Reading): To further amend Public Law No. 19-152, as amended by Public Laws Nos. 19-162 and 20-08, by amending section 2 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Yap State, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-56) on first reading.

Chairman Perman: Second.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: It’s been moved and seconded that Congress pass on first reading C.B. No. 20-56. Discussion?

Chairman Perman: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:32 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:33 a.m.

Acting Speaker Moses: Congress comes back to session. We are still on discussion of C.B. No. 20-56.

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote by roll call of Members. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, eleven Members voted for.

Acting Speaker Moses: Congress has now passed Congressional Bill No. 20-56 on first reading. Next bill.

Chief Clerk: There are none, Mr. Acting Speaker.

Acting Speaker Moses: If no objection, next item.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

INTRODUCTION OF RESOLUTIONS

None

MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Senator Neth: Mr. Acting Speaker.

Acting Speaker Moses: Senator Neth, you have the floor.

Senator Neth: Thank you, Mr. Acting Speaker. I wish to extend, on our behalf, a congratulation to the newly re-elected Luhkenmoanlap or Chief Magistrate of Kitti; and also for the record, I would like to correct the name of my friend, not Berny but Benance Mihkel. Thank you.

Acting Speaker Moses: Thank you. Any other miscellaneous business?

Acting Floor Leader Urusemal: Mr. Acting Speaker, short recess.

Acting Speaker Moses declared the Congress recessed at 11:35 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:36 a.m.

Acting Speaker Moses: Congress comes back to session. We are still on Miscellaneous Business. If no more, let’s go to Announcements.

ANNOUNCEMENTS

Acting Speaker Moses: Chairman Welly.

Chairman Welly: Thank you, Mr. Acting Speaker. No announcements from your Committee on External Affairs.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I want to ask the members of your Committee (W&M) to meet in the Members’ Lounge to discuss the budget, supplemental, regular, and everything under the ceiling.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses: Members of Ways and Means, please take note. Chairman Perman.

Chairman Perman: Thank you, Mr. Acting Speaker. The Committee on Health and Social Affairs, we will have a hearing on Wednesday at 2:30 p.m. Please, Members come. Remember the first day of session, I shared a report that was produced by the Department of Health. This is regarding the opium, cocaine, and everything for $250,000. If you look at the Report, there is no such thing as “all the problem that we have.” I wish that Members join so we can actually discuss with them if they are just bringing down grants to create jobs or they are very serious about all these funds that we are always asked of. Please come and join us. If I still have the floor, I just want to add on that today our special friend from the Members of the Chuuk Delegation, Chairman Gouland’s birthday. He turned drinking age today so he can actually start drinking. I believe that your office provided ice cream, cake, and, of course, food to celebrate his birthday. So, happy birthday Chairman Gouland (applause).

Acting Speaker Moses: Thank you, Chairman Perman for the announcement. Chairman Romolow.

Chairman Romolow: Thank you, Mr. Acting Speaker. Your Committee on J&GO will hold a budget hearing this afternoon at 2:00 p.m. with the Election Office and Postal Services. Thank you.

Acting Speaker Moses: Thank you, Chairman Romolow. Chairman Panuelo.

Chairman Panuelo: No announcements.

Acting Speaker Moses: Chairman Gouland.

Chairman Gouland: Thank you, Mr. Acting Speaker. Your Committee on T&C, if I am not mistaken, we have a hearing tomorrow at 8:30 a.m., join hearing: T&C and J&GO. Please come to the hearing tomorrow, members. Today, I turned 16 years old. Thank you. Acting Speaker Moses: Thank you, Chairman Gouland. Chairman Urusemal?

Acting Floor Leader Urusemal: Thank you very much, Mr. Acting Speaker. I regret to indicate that there is no announcement from your Committee on Education because while we were advised that there is an urgent matter that needs to be acted upon, the Committee cannot and will not look at anything that has not been transmitted officially through the channel to the Speaker’s Office. I have been copied or given a copy of the proposal but unfortunately it still stuck somewhere in the Executive Branch. I am hoping that by Friday we will make announcements. Maybe I should go ahead and make the announcement that on Friday, July 14, your Committee on Education will have a hearing on this so called urgent proposal at 1:30 p.m. Thank you, Mr. Acting Speaker.

Acting Speaker Moses: Thank you, Chairman Urusemal. Senator Neth? Senator Aritos? Senator Konman? If no more announcements, Acting Floor Leader Urusemal. Acting Floor Leader Urusemal: Short recess, Mr. Acting Speaker.

July 11, 2017 CONGRESSIONAL JOURNAL – DAY SIX– 1SS – 20CFSM

Acting Speaker Moses declared the Congress recesse at 11:42 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:42 a.m.

Acting Speaker Moses: Congress comes back to session.

Acting Floor Leader Urusemal: Thank you very much, Mr. Acting Speaker. I move that this Congress stand in recess until tomorrow morning at 10:00 a.m. I so move.

Senator Konman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress stand in recess until 10:00 o’clock, tomorrow morning. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress stands in recess until 10:00 o’clock tomorrow morning.

Acting Speaker Moses declared that the Congress stand in recess at 11:43 a.m., Tuesday, July 11, 2017, until tomorrow, Wednesday, July 12, 2017, at 10:00 a.m.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY SEVEN Wednesday, July 12, 2017

The Seventh Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:19 a.m., Wednesday, July 12, 2017.

Acting Speaker Esmond B. Moses presided.

A moment of silent prayer was observed.

The Chief Clerk yielded the floor to the Assistant Chief Clerk to do roll call of Members.

The Assistant Chief Clerk called the roll. Eleven Members were present; Floor Leader Harper and Speaker Simina were excused; Senator Figir was late.

Senator Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. Before I move to suspend the reading of the Journal, I ask that we continue to pray for Floor Leader who, I understand, was undergoing surgery yesterday. Please remember him in your prayers.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-53 - (dated and received 07/11/17) – Submitting the supplemental budget request, a total of $6.3 million of which $368,000 is in operations budget, $430,000 to grants, subsidies, contributions budget, and $5.5 million in CIP – budget for fiscal year 2017.

-No. 20-54 - (dated and received 07/11/17) – Transmitting a proposed bill to amend Section 404 of Title 24 of the FSM Code, to provide NORMA the discretion to exempt certain Long Line and Pole and Line fishing vessels from the prohibition of fishing on neighboring high seas areas.

-No. 20-55 - (dated and received 07/11/17) – Transmitting a resolution approving and accepting a grant in the amount of 21,270,000 (yen) from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist fisheries development program of the State of Pohnpei.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Acting Speaker Moses: Please make the necessary assignments. Next item, FSM Supreme Court Communications.

FSM SUPREME COURT COMMUNICATIONS

None

Senator Isaac V. Figir entered and took seat in the Chamber at 10:22 a.m.

MEMBER COMMUNICATIONS

-No. 20-05 - (dated 07/11/17 and received 07/12/17) – From the Hon. Esmond B. Moses, Vice Speaker of the 20th FSM Congress, sharing for information a letter from Mr. Kasio E. Mida, Senior Headquarters Executive, MRA, Inc., on C.B. No. 20-34 regarding the creation of a new FSM National Corporations Law.

DEPARTMENTAL COMMUNICATIONS

-No. 20-12 - (dated and received 07/05/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, sharing a copy of the Diplomatic Note No. 17-0137 from the U.S. Embassy, with an enclosed letter from Mr. Nikolao Pula, Acting Assistant Secretary of Insular Affairs, concerning the lifting of the suspension of public infrastructure grant assistance to the Government of the Federated States of Micronesia; and a copy of the Joint Statement signed by Vice President Yosiwo P. George and Mr. Pula.

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

None

STATE COMMUNICATIONS

None

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

FOREIGN GOVERNMENT COMMUNICATIONS

-No. 20-10 - (dated 07/05/17 and received 07/11/17) – From the Clerk of the Australian House of Representatives, Australian Parliament, inviting Vice Speaker to attend an Inter-Parliamentary Study Program from 23- 28 November 2017.

Acting Speaker Moses: Order of the Day, item Fourteen.

ORDER OF THE DAY

STANDING COMMITTEE REPORTS:

-SCR No. 20-13, RE: C.B. No. 20-34: “To enact a new chapter 1 of title 36 of the Code of the Federated States of Micronesia (Annotated), and to repeal the existing chapter 1 in its entirety, to renumber chapter 2 of title 36 of the Code of the Federated States of Micronesia as chapter 3, for the purpose of creating a new FSM National Corporations Law, and for other purposes.” – R&D – (RECOMMENDS ITS PASSAGE, AS AMENDED/July 11, 2017).

Acting Speaker Moses: Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, all Members and everyone who is observing from the gallery, good morning. Mr. Acting Speaker, I so move for the adoption of the Standing Committee Report No. 20-13.

Senator Neth: Second.

Acting Speaker Moses: It’s been moved and seconded that Standing Committee Report No. 20-13 be adopted. Discussion?

Chairman Panuelo: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, thank you. Let me do my best to try to summarize the Report (SCR No. 2-13) and its intention

Acting Floor Leader Urusemal: Mr. Acting Speaker, I move for a short recess.

Acting Speaker Moses declared the Congress recessed at 10:24 a.m., subject to the call of the Chair.

RECESS

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

The Congress reconvened at 10:29 a.m. Acting Speaker Moses: Congress comes back to session. Chairman Panuelo, you have the floor.

Chairman Panuelo: Mr. Acting Speaker, thank you for giving me the opportunity to speak on the Report (SCR No. 2-13). Mr. Acting Speaker and Members, the corporate bill in itself is pretty intimidating due to the fact that it has a total of 291 pages in total. It is discouraging, however, its simpler than it appears. As you all understand, the Bill (C.B. No. 20-34) was being worked on in the Nineteenth Congress. Due to its volume and the laborious work your Committee on R&D during the Nineteenth Congress, needed more time. So as reflected in the communication, it was resubmitted from the President’s Administration, Presidential Communication No. 20-20 during our Opening of the Twentieth Congress, May 19th. The Bill (C.B. No. 20-34) proposed numerous amendments to the title 36 of the FSM Code, which is the FSM Corporation Law. To summarize, this Bill (C.B. No. 20-34) will overall try to modernize title 36 of the FSM Code since our laws governing Corporation Law are from the old Trust Territory day. This R&D Committee Report (SCR No. 20-13) has a lengthy report with 18 pages tries to put in place to the Bill (C.B. No. 20-34) in making sure that that the amendments are understood and that Members can understand the amendments that we have. There are fifty-three amendments to the Bill (C.B. No. 20-34) as shown. This Bill (C.B. No. 20-34) contains recommended measure raised by the peer review report from the Global Forum on the prevailing Corporation Law and Regulations throughout the Nation. Regardless of what we do and the efforts, including the efforts to pass this corporate Bill, the FSM placed on the largely compliant category. We have graduated from the previous position where we experienced no complains and now we categorized as largely compliant. There is no threat as it was reported in Japanese news in the past that the Global Forum or the organization that is looking at transparency would actually put us on the black list or in a red light, which will affect the business that we are partnered with: the MRA in registering major corporations in the FSM. If we look at the proposed numerous amendments, I want to cite some of them. This Bill (C.B. No. 20-34) does not apply to corporations formed under State laws. I want to indicate that the Committee, even though it is not dealing with corporations formed under the State laws, wrote to the leadership of the States providing this Bill (C.B. No. 20-34) in seeking their inputs. I know that your Committee waited and gave them ample time to respond because we considered that the States’ input as important even though this Bill (C.B. No. 20-34) does not apply to State laws. Your Committee did not receive any input assuming maybe because there is no jurisdiction with the States under this Corporate Law. Let the report reflects that the ample time was given to our States Leadership to provide their inputs. I am picking out some of the amendments. This Bill (C.B. No. 20-34) contains a comprehensive set of definitions. These are also specialized definitions elsewhere in the proposed Bill applicable to specific corporate issues of our modern times. Mr. Acting Speaker, the proposed amendments also deal with defining Registrar of Corporations including their rule: positions, granting the registrar, the power to adopt the regulations, appoint assistant registrars including assistant registrars who may carry out these functions in the FSM Embassies abroad. In short, we understand that MRA and the lawyers played a large part in collaboration with the Department of Justice to make sure that our archive (old Trust Territory laws) dealing with corporate matters be modernized. This Bill (C.B. No. 20-34) that is in front of us is really doing exactly that. It tries to repeal some of the existing old Trust

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Territory laws in the past and tries to put them together under one set of law so people or companies registering in our Nation can understand the specific actions in dealings with the areas or sections of our Government that deals with registrar corporations. I know that the amendments are very lengthy, up to fifty-three of them. Your Committee recommends some amendments, if you go to page 16 of the Report (SCR No. 20-13), Your Committee recommended the following amendments to the bill as follows… that is to mainly create clear definitions. Some of these amendments are semantic, and are to create clear definitions so that the bill that can be passed by Congress. So overall, your Committee did its very best and have taken this bill from the Nineteenth Congress to the Twentieth Congress. It comes to our senses that this Bill (C.B. No. 20-34) is ready to be passed by this Congress so we can attract more Major Corporations into the FSM. Our partner, MRA, has played the rule in advising and inputting to the Bill (C.B. No. 20-34) before Congress. I will stop there and ask other members of our Committee to help other areas that I did not cover. I could not go through all of the amendments because they are numerous. But I hope that Members have carefully read the Report (SCR No. 20-13) and are in accord with it. Mr. Acting Speaker, your Committee on Resources and Development is in accord with the intention and purpose of C.B. No. 20-34 and recommends its passage on the first reading. Thank you, Mr. Acting Speaker.

Acting Speaker Moses: Thank you, Chairman Panuelo.

Chairman Gouland: Short recess, Mr. Acting Speaker.

Acting Speaker Moses declared the Congress recessed at 10:37 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:43 a.m.

Acting Speaker Moses: Congress comes back to session. We are still on discussion on Standing Committee Report No. 20-13.

Chairman Perman: Question.

Chairman Figir: Second.

Acting Speaker Moses: Question has been called for. If no objection, we will vote. All those in favor of the adoption of the said Report (SCR No. 20-13) say ‘aye’ – opposed say ‘nay’. The motion is carried. The Report, SCR No. 20-13, is adopted by Congress. next report.

-SCR No. 20-14, RE: CA. No. 20-14 (P.C. No. 20-47): “To further amend title 3 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 305 to chapter 3 to place a statutory limit on the amount of funds that Congress may

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

appropriate to Members' Representation Funds relative to the annual salary of the President of the Federated States of Micronesia, and for other purposes.” – W&M – (RECOMMENDS OVERRIDE OF THE VETO/7/11/17).

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move for the adoption of Standing Committee Report No. 20-14.

Chairman Panuelo: Second.

Acting Speaker Moses: It has been moved and seconded that Standing Committee Report No. 20-14 be adopted by Congress. Discussion?

Chairman Panuelo: Question.

Chairman Figir: Second.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on the Standing Committee Report No. 20-14. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Report, SCR No. 20-14, is now adopted by Congress. Next report.

Chief Clerk: There are none, Mr. Acting Speaker.

Acting Speaker Moses: Next item.

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-17.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-17, DAY 07, WEDNESDAY, 07/12/17, AT 10:00 A.M.

C.B. NO. SUBJECT COMMITTEE 20-56 To further amend Public Law No. 19-152, as amended W&M by Public Laws Nos. 19-162 and 20-08, by amending

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

section 2 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Yap State, and for other purposes. 20-57 To amend Public Law No. 19-118, as amended by W&M Public Laws Nos. 19-125, 19-131, 19-135, 19-146 and 19-160, by amending section 11 thereof, to lift the restriction on reprogramming by the President of the Federated States of Micronesia of certain public funds appropriated to support the operations of the Executive Branch for the fiscal year ending September 20,2017, and for other purposes. 20-58 To further amend title 2 of the Code of the Federated J&GO States of Micronesia (Annotated), as amended, by amending section 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management, Climate Change and Emergency Management, to empower the President of the Federated States of Micronesia to transition the functions of the dissolved office, and for other purposes. 20-59 To further amend Public Law No. 18-70, as amended by W&M Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139, 20-07 and 20-15 by amending section 4 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Pohnpei State, and for other purposes. C.R. NO. SUBJECT COMMITTEE 20-19 Approving and accepting a U.S. Agency for SPECIAL COMMITTEE International Development grant in the amount of ON CLIMATE $240,000 to fund the implementation of the Institutional CHANGE AND Strengthening in PICs to Adopt to Climate Change ENVIRONMENTAL Project, including all the terms and conditions of the ISSUES assistance. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-52 (dated and received 07/10/170 – Proposing further W&M changes to the personnel budget mainly to reclassify some of the positions in Treasury, Investment and CTA that were not previously reflected in the initial proposed budget. DEPARTMENTAL SUBJECT COMMITTEE COMM. NO. 20-11 (dated and received 07/10/17) – From the Hon. Lorin S. INFO. Robert, Secretary, Department of Foreign Affairs,

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

advising that the Hon. Leon Malazogu, Ambassador of the Republic of Kosovo to the FSM, will be in Pohnpei from August 7 to 10, 2017 to present his letter of credence, scheduled for August 7, 2017.

Acting Speaker Moses: Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

C.B. No. 20-34, CD1 (1st Reading): To enact a new chapter 1 of title 36 of the Code of the

Federated States of Micronesia (Annotated), and to repeal the existing chapter 1 in its entirety, to renumber chapter 2 of title 36 of the Code of the Federated States of Micronesia as chapter 3, for the purpose of creating a new FSM National Corporations Law, and for other purposes. – R&D – (cf. SCR No. 20-13).

Acting Speaker Moses: Chairman Panuelo.

Chairman Panuelo: Mr. Acting Speaker, I so move for the passage of C.B. No. 20-34, CD1 on first reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-34, CD1 on first reading. Discussion?

Chairman Perman: Question.

Chairman Panuelo: Second.

Acting Speaker Moses: Question has been called for. If there is no objection, we will vote on C.B. No. 20-34, CD1 by roll call of Members. Chief Clerk, please call the roll.

The Chief Clerk took the roll call by Members.

Senator Alik Aye Senator Aritos Aye Senator Figir Aye Senator Gouland Aye Floor Leader Harper Absent Senator Konman Aye Senator Neth Aye

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Senator Panuelo Aye Senator Perman Aye Senator Romolow Aye Senator Urusemal Aye Senator Welly Aye Speaker Simina Absent Vice Speaker Moses Aye

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: With that, Congress has passed C.B. No. 20-34, CD1 on first reading. Next bill.

Chairman Perman: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Perman.

Chairman Perman: Thank you, Mr. Acting Speaker. Good morning to you, Members and all that are observing our session this morning. Mr. Acting Speaker, since we are doing first reading, may I make a motion to withdraw and place C.B. No. 20-59 on our Calendar for today? Therefore, I move the motion to withdraw and place the said bill C.B No. 20-59 on today’s calendar.

Chairman Panuelo: Second.

Acting Speaker Moses: It’s been moved and seconded that C.B. No. 20-59 be placed on today’s Calendar for action. Discussion?

Acting Floor Leader Urusemal: Short recess, Mr. Acting Speaker.

Acting Speaker Moses declared the Congress recessed at 10:48 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:49 a.m.

Acting Speaker Moses: Congress comes back to session. There is a motion to place C.B. No. 20-59 on today’s Calendar. Discussion? If none, let’s vote. All those in favor of the motion to place C.B. No. 20-59 on today’s Calendar say ‘aye’ – opposed say ‘nay’. The motion is carried.

Acting Floor Leader Urusemal: Mr. Acting Speaker, as your Acting Floor Leader, I move that the relevant rules especially the rules that may impede our action on withdrawing and placing bills on calendar be suspended.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the rules that may impede our action on placement of bills be suspended. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The rules are now suspended.

Chairman Romolow: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Romolow, you have the floor.

Chairman Romolow: Thank you, Mr. Acting Speaker. If I may not be out of order, I would like to make a motion to withdraw and place C.B. No. 20-58 on today’s Calendar.

Acting Floor Leader Urusemal: Short recess, Mr. Acting Speaker. Acting Speaker Moses declared the Congress recessed at 10:51 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:53 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Romolow, you have the floor.

Chairman Romolow: Thank you, Mr. Acting Speaker. I move to withdraw and place C.B. No. 20-58 on today’s Calendar.

Chairman Figir: Second.

Acting Speaker Moses: There is a motion to withdraw and place C.B. No. 20-58 on today’s Calendar. Discussion?

Chairman Figir: Question.

Chairman Perman: Second.

Acting Speaker Moses: Question has been called for. If no objection, we will vote. All those in favor of the placing C.B. No. 20-58 on today’s Calendar say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bill, C.B. No. 20-58, is now placed on the Calendar.

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: When I was the real Floor Leader of the previous Congresses, the Journal Clerk usually look my way and I will just make signs which means

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

suspension of rules. Absent that, I hope that the relevant rules are still suspended, Mr. Acting Speaker. Acting Speaker Moses: Let the record reflect that the record rules are still suspended. Next bill.

C.B. No. 20-59 (1st Reading): To further amend Public Law No. 18-70, as amended by

Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139, 20-07 and 20-15 by amending section 4 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Pohnpei State, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move that Congress pass the said C.B. No. 20-59 on first reading.

Senator Neth: Second.

Acting Speaker Moses: It has been moved and seconded that Congress pass C.B. No. 20-59 on first reading. Discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker, point of information. How many times?

Chairman Perman: Short recess.

Acting Speaker Moses declared the Congress recessed at 10:56 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:56 a.m.

Acting Speaker Moses: Congress comes back to session. Yesterday, the bill that we have amended several times, I was the one that amended it twice during the session. Therefore, I was part of the reason for that one. Today this one is fifteen. There is a motion before us to pass C.B. No. 20-59 on first reading. Any discussion?

Chairman Figir: Question.

Chairman Perman: Second.

Acting Speaker Moses: Question has been called for. If no objection, we will vote by roll call of Members. Chief Clerk, please call the roll.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

The Chief Clerk took the roll call by Members.

Senator Alik Aye Senator Aritos Aye Senator Figir Aye Senator Gouland Aye Floor Leader Harper Absent Senator Konman Aye Senator Neth Aye Senator Panuelo Aye Senator Perman Aye Senator Romolow Aye Senator Urusemal Aye Senator Welly Aye Speaker Simina Absent Vice Speaker Moses Aye

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: As a result, Congress has passed the said C.B. No. 20-59 on first reading. Next bill.

C.B. No. 20-58 (1st Reading): To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended, by amending sections 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management, Climate Change and Emergency Management, to empower the President of the Federated States of Micronesia to transition the functions of the dissolved office, and for other purposes.

Acting Speaker Moses: Chairman Romolow.

Chairman Romolow: Thank you, Mr. Acting Speaker. I move that Congress pass C.B. No. 20-58 on first reading.

Chairman Perman: Second.

Acting Speaker Moses: It has been moved and seconded that Congress pass C.B. No. 20-58 on first reading. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-58. Chief Clerk.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Acting Speaker, twelve Members voted for, two absent.

Acting Speaker Moses: As a result, Congress has passed C.B. No. 20-58 on first reading. Next bill.

C.A. No. 20-14 To further amend title 3 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 305 to chapter 3 to place a statutory limit on the amount of funds that Congress may appropriate to Members' Representation Funds relative to the annual salary of the President of the Federated States of Micronesia, and for other purposes. – FOR RE-PASSAGE – W&M – (cf. SCR No. 20-14).

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I reluctantly move to re-pass C.A. No. 20-14.

Chairman Perman: Second.

Acting Speaker Moses: It has been moved and seconded that C.A No. 20-14 be re- passed by Congress. Discussion?

Chairman Figir: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. When I said, “reluctantly move”, which means to override the President, I am reluctant to support not necessarily based on the

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

President’s transmittal and reasoning for vetoing the measure, but for us, I cannot believe that we are using or going to use a pretentious law. In short, it is a way out of doing things. Should we set a limit in order to restrain ourselves? In fact, we are telling our people that we are unable to stand up to our convictions. If we are concerning about the amount of money we are appropriating to ourselves, I think we should restrain ourselves. There is no need to have a law in place. We don’t have to legislate and pretend that we are doing the right thing and use a law. Let’s use our convictions the real way of doing things and act like man and stick to what we ran for and its purposes, which is to serve our constituents and serve this Nation. That is all I have to say for the record. And if I have to test my vote, I will vote no.

Acting Speaker Moses: Thank you, Chairman Figir. Any more discussions?

Chairman Gouland: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Gouland.

Chairman Gouland: Mr. Acting Speaker, I was in a dark tunnel. I don’t have any flashlight. I don’t have the Bill (C.A. No. 20-14) in front of me.

Chairman Perman: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:03 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:11 a.m.

Acting Speaker Moses: Congress comes back to session. We are still on discussion of Congressional Act No. 20-14.

Chairman Perman: Question.

Chairman Figir: Second.

Acting Speaker Moses: Question has been called for. If no objections, we will vote by Delegations.

Chairman Gouland: Short recess, Mr. Acting Speaker.

Acting Speaker Moses declared the Congress recessed at 11:11 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:12 a.m.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Acting Speaker Moses: Congress comes back to session. Chief Clerk, call the roll.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Alik Nay State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the three States voted for.

Acting Speaker Moses: As a result, Congressional Act No. 20-14 has been passed therefore the Presidential veto has been overridden. Next bill.

C.B. No. 20-52 (2nd Reading): To further amend Public Law No. 19-89, as amended by Public Laws Nos. 19-94, 19-127, 19-151, 19-159 and 20- 06, by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs in the state of Pohnpei, and for other purposes.

Deferred 7/11/17 to today.

Acting Speaker Moses: Chairman Figir.

Chairman Panuelo: Short recess, Mr. Acting Speaker.

Acting Speaker Moses declared the Congress recessed at 11:13 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:13 a.m.

Acting Speaker Moses: Congress comes back to session. Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-52) on second and final reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-52 on second reading. Discussion?

Chairman Gouland: Mr. Acting Speaker.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Acting Speaker Moses: Chairman Gouland.

Chairman Gouland: Thank you, Mr. Acting Speaker. I have a written amendment to the Bill (C.B. No. 20-52). I don’t know if it’s already been distributed to Members. Can I request for a short recess?

Acting Speaker Moses declared the Congress recessed at 11:14 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:15 a.m.

Acting Speaker Moses: Congress comes back to session. We are on discussion of C.B. No. 20-52 on second reading.

Chairman Gouland: Mr. Acting Speaker, I have a written amendment to this Bill (C.B. No. 20-52). I wish to move to adopt the amendment.

Floor Amendment to C.B. No. 20-52 Offered by Senator Victor Gouland

C.B. No. 20-52 is hereby amended to read as follows: 1. Title, line 2, delete “section 4”, and insert “sections 4 and 5” in lieu thereof. 2. Title, line 5, delete “State of Pohnpei”, and insert “States of Pohnpei and Chuuk” in lieu thereof. 3. Page 3, line 11, after “Section 2”, insert the following:

“Section 5 of Public law No. 19-89, as amended by Public Laws Nos. 19-94, 19-151 and 19-159, is hereby further amended, to read as follow: “Section 5. Of the sum of $1,400,000 appropriated by this act, $600,000 is apportioned for public projects and social programs in the state of Chuuk. State of Chuuk…………………………………..….$ 600,000 1) At-Large……………………….……………. 100,000 a) Allottee’s administrative support cost…... 15,000 b) Contributions to state, municipal

and community activities, programs and events……………….....……………………. 15,000 c) POL/ Freight/ Charters……….…………. 10,000 d) Leadership/ Patients/ Students

/COAP travels……………………………….. 25,000 e) Fishing projects…………………………. 30,000 f) FAS Athletic Program (Guam)…………. 3,000 g) Chuuk dump site topography survey…… 2,000

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2) Election District No. 1 a) Mortlocks Island Development

Authority (MIDA)…………………………… 50,000 b) Mortlocks Athletes needs for Chuuk

Goodwill games (October 2016)……………. 50,000 3) Election District No. 2………………………. 100,000 a) [Guma] Kokumi Goodwill Games

[Northern Namoneas]………………..……… 5,000 b) Housing and community halls

and rehabilitation……………………………. 10,000 c) Allottee’s administrative support cost….. 5,000 d) Travel needs………………………..…… 20,000 e) Food security…………………………….. 15,000 f) Fishing project…………………………… 20,000 g) Land transportation needs…………….… 7,000 h) Chuuk Women Council (Coalition for

Healthy Lifestyle)…………….…………….. 3,000 i) Office of Governor subsidy…………….. 10,000 j) Travel needs…………………..………… 5,000 4) Election District No. 3……………………… 100,000 a) Fishing Project………………………….. 45,000 b) Multi-purpose building/ facilities/

community halls/ housing repair/ improvement…………………….………….. 30,000 c) Grants/ PCD writer……………..………. 5,000 d) Contributions to state, municipal and

community activities, programs and events /travel…………………………..…………… 10,000 e) POL/ Freight/ Charters/ SNDA vessel

operation…………………………………….. 5,000 f) Uman Constitutional Day (Goodwill Games) 5,000 5) Election District No. 4...... 100,000 a) Fishing Project...... ………………….. 20,000 b) Low income housing……………………. 20,000 c) Community Outreach and Advocacy Program 20,000 d) Students financial assistance……………. 15,000 e) Humanitarian assistance………………… 15,000

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f) FDA administrative cost………………… 10,000 6) Election District No. 5……………………… 100,000 a) Pacific Festival of Arts participants…….. – 0 – b) Patients referral and human remain/

repatriation………………………………….. 10,000 c) POL/ Freight/ Charters………………….. 10,000 d) Northwest Goodwill Games…………….. 10,000 e) Leaders and citizens community outreach

program……………………………………… 20,000 f) Low income and community housing

renovation………………………..…………. 25,000 g) Food Relief Program……………………. 10,000 h) Tamatam Municipal Constitution Convention – 0 – i) Allottee’s administrative support cost….. 10,000 j) Municipal vehicle purchase…………….. 5,000”

Date: July 12, 2017 Introduced by: /s/ Victor Gouland Victor Gouland

Purpose of the amendment: To change the use of funds under this act for Chuuk State.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the amendment offered by Chairman Gouland be adopted. Discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I move that the relevant rules that may impede our action on this proposed amendment be suspended.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that the rules prohibiting substantive amendments on second and final reading be suspended. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The relevant rules are suspended. Discussion on the proposed amendment by Chairman Gouland? It’s quite lengthy so we will dispense with its reading.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for on the floor amendment to C.B. No. 20-52. If no objection, we will vote on the amendment offered by Chairman Gouland. All those in favor of the motion to adopt the floor amendment to C.B. No. 20-52 say ‘aye’ – opposed say ‘nay’. The motion is carried. We now have C.B. No. 20-52, CD1. Any discussion?

Chairman Gouland: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: Congress has now passed C.B. No. 20-52, CD1 on second and final reading. Next bill.

C.B. No. 20-53 (2nd Reading): To further amend Public Law No. 19-121, as amended by

Public Laws Nos. 19-130, 19-142, 19-145, 19-158 and 20- 09 by amending section 4 thereof, to change the use of funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of the state of Pohnpei, and for other purposes.

Deferred 7/11/17 to today.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move for the passage of the said Bill (C.B. No. 20-53) on second and final reading.

Chairman Welly: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on second and final reading C.B. No. 20-53. Discussion? If none, debate is closed. Without objection, we will vote on C.B. No. 20-53 by Delegations.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: As a result, C.B. No. 20-53 has passed by Congress on second and final reading. Next bill.

C.B. No. 20-55 (2nd Reading): To further amend Public Law No. 19-124, as amended by Public Laws Nos. 19-133, 19-140, 19-150, 20-05 and 20- 15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the state of Pohnpei, and for other purposes.

Chairman Panuelo: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Panuelo.

Chairman Panuelo: I have consulted the Pohnpei Delegation about this. This actually a project that we are breaking down for funds previously appropriated and with the permission of Ways and Means Chairman, I move that we defer this Bill (C.B. No. 20-55) to tomorrow’s Calendar so that we can clean up and add more to the amendment which is offered by Senator Dion G. Neth. I so move.

Chairman Figir: Mr. Acting Speaker, I move to defer action on the said Bill (C.B. No. 20-55) to tomorrow’s Calendar.

Chairman Panuelo: Second.

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:21 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:24 a.m.

Acting Speaker Moses: Congress comes back to session. There is a motion to defer C.B. No. 20-55 to tomorrow’s Calendar.

July 12, 2017 CONGRESSIONAL JOURNAL – DAY SEVEN– 1SS – 20CFSM

Chairman Perman: Second.

Acting Speaker Moses: Short recess.

Acting Speaker Moses declared the Congress recessed at 11:24 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:24 a.m.

Acting Speaker Moses: Congress comes back to session. There is a motion to defer action on C.B. No. 20-55 to tomorrow’s Calendar. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bill, C.B. No. 20-55, is deferred to tomorrow’s Calendar. Next bill.

C.B. No. 20-44 (2nd Reading): To further amend Public Law No. 19-10, as amended by

Public Laws Nos. 19-26, 19-42, 19-51, 19-56, 19-72, 19- 78, 19-96, 19-132, 19-163 and 20-03, by amending section 6 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in each of the states, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I move that Congress pass on second and final reading C.B. No. 20-44.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on second and final reading C.B. No. 20-44. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-44. Chief Clerk, call the roll.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

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Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: As a result, Congress has now passed C.B. No. 20-44 on second and final reading. Next bill.

C.B. No. 20-45 (2nd Reading): To further amend Public Law No. 17-68, as amended by

Public Laws Nos. 17-71, 17-81, 17-84, 17-89, 17-90, 18- 03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, 18-95, 19-16, 19-47, 19-87, 19-98 and 19-123, by amending section 6 therein, for the purpose of changing the lapse date of certain funds previously appropriated to fund public projects and social programs in each of the states, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move that Congress pass the said Bill (C.B. No. 20-45) on second and final reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass on second and final reading C.B. No. 20-45. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-45 on second and final reading by Delegations. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: Congress has now passed C.B. No. 20-45 on second and final reading. Next bill.

C.B. No. 20-46, CD1 (2nd Reading): To further amend Public Law No. 19-60, as amended

by Public Laws Nos. 19-71, 19-80, 19-103, 19-148 and 19-165, by amending section 6 thereof, to change the lapse date of certain funds previously appropriated therein, for the purpose of funding essential government

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functions, programs, projects and activities in each of the states, and for other purposes. Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of the said Bill (C.B. No. 20-46, CD1) on second and final reading.

Chairman Perman: Second.

Acting Speaker Moses: It has been moved and seconded that Congress pass C.B. No. 20-46 , CD1 on second and final reading. Discussion?

Chairman Perman: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-46, CD1 on second and final reading by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: We have now passed C.B. No. 20-46, CD1 on second and final reading. Next bill.

C.B. No. 20-47 (2nd Reading): To further amend Public Law No. 19-64, as amended by

Public Laws Nos. 19-81, 19-97, 19-120 and 19-137, by amending section 2 thereof, to change the lapse date of funds previously appropriated therein, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei, to correct technical errors, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I so move for the passage of the Bill (C.B. No. 20-47) on second and final reading.

Chairman Perman: Second.

Acting Speaker Moses: It’s been moved and seconded that Congress pass C.B. No. 20-47 on second reading. Discussion?

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Senator Alik: Mr. Acting Speaker.

Acting Speaker Moses: Senator Alik.

Senator Alik: Thank you, Mr. Acting Speaker. I have an amendment to offer on C.B. No. 20-47. Copies have been circulated. I move for the adoption of the amendment.

Floor Amendment to C.B. No. 20-47 Offered by Senator Alik L. Alik

C.B. No. 20-47 is hereby amended to read as follows: 1. Title, line 2, delete “section 2”, and insert “sections 1 and 2” in lieu thereof. 2. Title, line 3, before “lapse date”, insert “use and”. 3. Page 1, line 1, after section “section 1”, insert the following:

“Section 1. Purpose. The sum of $3,050,000 or so much thereof as may be necessary, is hereby appropriated from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2016, for the purpose of funding public projects and social programs in the states of Kosrae and Pohnpei. The funds appropriated under this section shall be apportioned as follows: 1) State of Kosrae……………………………...$ 300,000 a) Road maintenance………………………. – 0 – b) Fishing projects…………………………. – 0 – c) Micronesian Baseball Classic 2017

[transportation needs] (airfare, baseball gears uniforms, baseball classic fee, meals, ac- commodations and car rentals)……………………… 26,000 d) Contributions to other projects, activities, programs and events: i. B.A. Programs for Kosraean Students 20,000 ii. Contractual Services for Office Staff and Security Guards………………………… 20,000 iii. Delegation Office Community Outreach

and Advocacy Program……………………... 20,000 iv. Contribution to Kosraean Association in Hawaii……………………………………. 20,000 v. Contribution to Kosraean Association in Guam……………………………………... 20,000 vi. Hawaii Benevolent Association subsidy 10,000 vii. Wan Taf River Cleaning…………….. 5,000 viii. Utwa-Walung Channel Clean-up…… 15,000

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ix. Renovation of Walung House………. 10,000 x. Kosrae Visitors Bureau subsidy…….. 10,000 e) Pikusrik wan (Keon) Farm Road……….. 12,000 f) Tafunsak Water system Extension………. 30,000 g) Kosrae State Survey and Mapping subsidy 8,000 h) Utwa Dredging Project…………………. 20,000 i) Utwa water system (Isra, Utwa)………... 5,000 j) Mosral water system improvement……... 7,000 k) Malem Drainage Project………………… 8,000 l) Malem Inner Road improvement……….. 10,000 m) Micronesian Teachers Education Conference hosting………………………………………. 12,000 n) FSM Finance Conference………………. 12,000 4. Page 2, line 18, delete “section 2”, and insert “section 3” in lieu thereof.

Date: July 12, 2017 Introduced by: /s/ Alik L. Alik Alik L. Alik

Purpose of the amendment: To change the use of funds under this at for Kosrae State.

Chairman Perman: Second.

Acting Speaker Moses: It has been moved and seconded that Congress adopt the floor amendment to C.B. No. 20-47 by Senator Alik. It’s quite lengthy so we will suspend the reading of the amendment. I think it is been distributed to all Members. Any discussion?

Acting Floor Leader Urusemal: Mr. Acting Speaker.

Acting Speaker Moses: Chairman Urusemal.

Acting Floor Leader Urusemal: Again, I move that the relevant rules that may impede our action be suspended.

Acting Speaker Moses: Let the record reflect that the relevant rules that may impede our action are stills suspended. Discussion? If no discussion, let’s vote on the said amendment. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The amendment is adopted. We now have C.B. No. 20-47, CD1. Discussion? If no further discussion, we will vote by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye

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State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: For that reason, Congress has now passed C.B. No. 20-47, CD1 on second and final reading. Next bill.

C.B. No. 20-48 (2nd Reading): To further amend Public Law No. 18-117, as amended by

Acting Speaker Moses: Chairman Figir.

Chairman Figir: Thank you, Mr. Acting Speaker. I move for the passage of the said Bill (C.B. No. 20-48) on second and final reading.

Acting Floor Leader Urusemal: Second.

Acting Speaker Moses: It has been moved and seconded that Congress pass C.B. No. 20-48 on second reading. Discussion?

Chairman Figir: Question.

Acting Speaker Moses: Question has been called for. If no objection, we will vote on C.B. No. 20-48 on second and final reading by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: For that reason, C.B. No. 20-48 has passed by Congress on second and final reading. Next bill.

C.B. No. 20-56 (2nd Reading): To further amend Public Law No. 19-152, as amended by Public Laws Nos. 19-162 and 20-08, by amending section 2 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public

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projects and social programs for the people of Yap State, and for other purposes.

Acting Speaker Moses: Chairman Figir.

Chairman Figir: I so move, Mr. Acting Speaker.

Acting Floor Leader Urusemal: Second.

Acting Speaker Moses: It has been moved and seconded that Congress pass C.B. No. 20-56 on second and final reading. Discussion? If no discussion, we will vote by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Acting Speaker, all the four States voted for.

Acting Speaker Moses: For that reason, C.B. No. 20-56 is passed by Congress on second and final reading. Next bill.

Chief Clerk: There are none.

Acting Speaker Moses: Next item.

RESOLUTION CALENDAR

None

INTRODUCTION OF BILLS

C.B. No. 20-56: Introduced by: Senator Urusemal Assigned to: W&M Date introduced: July 12, 2017

To further amend Public Law No. 19-152, as amended by Public Laws Nos. 19-162 and 20-08, by amending section 2 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Yap State, and for other purposes.

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C.B. No. 20-57: Introduced by: Floor Leader Harper (By request) Assigned to: W&M Date introduced: July 12, 2017

To amend Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146 and 19-160, by amending section 11 thereof, to lift the restriction on reprogramming by the President of the Federated States of Micronesia of certain public funds appropriated to support the operations of the Executive Branch for the fiscal year ending September 20,2017, and for other purposes.

C.B. No. 20-58: Introduced by: Floor Leader Harper (By request) Assigned to: J&GO Date introduced: July 12, 2017

To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended, by amending section 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management, Climate Change and Emergency Management, to empower the President of the Federated States of Micronesia to transition the functions of the dissolved office, and for other purposes.

C.B. No. 20-59: Introduced by: Senator Perman Assigned to: W&M Date introduced: July 12, 2017

To further amend Public Law No. 18-70, as amended by Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139, 20-07 and 20-15 by amending section 4 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Pohnpei State, and for other purposes.

INTRODUCTION OF RESOLUTIONS

C.R. No. 20-19: Introduced by: Floor Leader Harper (By request) Assigned to: SCOCC Date introduced: July 12, 2017

Approving and accepting a U.S. Agency for International Development grant in the amount of $240,000 to fund the implementation of the Institutional Strengthening in PICs to Adopt to Climate Change Project, including all the terms and conditions of the assistance.

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MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Acting Speaker Moses: Any miscellaneous business? If none, next item.

ANNOUNCEMENTS

Acting Speaker Moses: Chairman Welly? Chairman Figir?

Chairman Figir: I believe that there is a hearing on a bill this afternoon at 1:30 p.m. The bill is an attempt to save some or get some money and pay a good future for the next generation of the people of this Country. We need Members to come to contribute and see how we can make FSM a better place for our future generations. Thank you.

Acting Speaker Moses: Thank you, Chairman Figir. Chairman Perman?

Chairman Perman: Thank you. Your Committee of Health will have a hearing at 2:30 today. All Members all welcome Thank you.

Acting Speaker Moses: Thank you. Chairman Romolow? Chairman Panuelo?

Chairman Panuelo: No announcements, Mr. Acting Speaker.

Acting Speaker Moses: Chairman Gouland?

Chairman Gouland: I was about to invite all the Members and staff today but it was a coincidence that my ATM card is not active. So Mr. Acting Speaker, that is the only announcement that I can announce. Thank you.

Acting Speaker Moses: Thank you. Chairman Urusemal?

Acting Floor Leader Urusemal: Short recess, Mr. Acting Speaker.

Speaker Simina declared the Congress recessed at 11:38 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:39 a.m.

Speaker Simina: Congress comes back to session. Chairman Urusemal.

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Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. No announcements. Still waiting.

Acting Speaker Moses: Senator Neth? Senator Alik?

Senator Alik: Thank you, Mr. Acting Speaker. Your Committee on Climate Change will meet tomorrow morning at 8:30 a.m., in the Lounge.

Acting Speaker Moses: Thank you. I forgot that you are a new Chairman. My apologies. Senator Aritos? Senator Konman? We are done with announcements. Floor Leader.

Acting Floor Leader Urusemal: Thank you, Mr. Acting Speaker. I move that this Congress stand in recess until tomorrow at 10:00 a.m.

Chairman Panuelo: Second.

Acting Speaker Moses: It has been moved and seconded that Congress stand in recess until 10:00 a.m., tomorrow. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress stands in recess until 10:00 a.m.

Acting Speaker Moses declared that the Congress stand in recess at 11:40 a.m., Wednesday, July 12, 2017, until tomorrow, Thursday, July 13, 2017, at 10:00 a.m.

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CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY EIGHT Thursday, July 13, 2017

The Eighth Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:26 a.m., Thursday, July 13, 2017.

Speaker Wesley W. Simina presided.

A moment of silent prayer was observed.

The Chief Clerk called the roll. Twelve Members were present; Floor Leader was excused; Senator Romolow was late.

Senator Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. Again, I continue to wish for prayers for our own Floor Leader. I have been informed that he underwent transplant the other day and he came out okay. Let’s hope and pray that he continue to recover quickly and that he return back to us. With that, I move to dispense with the reading of the Journal.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

None

FSM SUPREME COURT COMMUNICATIONS

None

MEMBER COMMUNICATIONS

None

DEPARTMENTAL COMMUNICATIONS

None

July 13, 2017 CONGRESSIONAL JOURNAL – DAY EIGHT– 1SS – 20CFSM

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

None

STATE COMMUNICATIONS

-No. 20-05 - (dated and received 07/12/17) – From the Hon. Tulensa W. Palik, Speaker, 11th Kosrae State Legislature, conveying full support of the $1 million supplemental request for FSM housing programs across the states.

Speaker Simina: Assign that, Chief Clerk. Next item.

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

FOREIGN GOVERNMENT COMMUNICATIONS

None

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

None

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-18.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

July 06, 2017 to July 15, 2017

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COMMITTEE REFERRAL REFERRAL SHEET NO. 20-18, DAY 08,THURSDAY, 07/13/17, AT 10:00 A. C.B. NO. SUBJECT COMMITTEE

20-60 To amend sections 1, 2, 8 and 9 of Public Law No. 19- W&M 118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160 and 20-14, in order to appropriate $6,270,448 of additional funds from the General Fund of the Federated States of Micronesia for the Fiscal Year ending September 30, 2017, and for other purposes. 20-61 To further amend section 404 of title 24 of the Code of R&D the Federated States of Micronesia (Annotated), as amended by Public Law No. 19-169, to grant the National Oceanic Resource Management Authority (NORMA) the discretion to exempt a fishing vessel from the prohibition of fishing in neighboring high seas, and for other purposes. 20-62 To amend sections 1,2,3,8 and 9 of Public Law No. W&M 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160 and 20-14, in order to appropriate $9,735,140 of additional funds from the General Fund of the Federated States of Micronesia for the Fiscal Year ending September 30, 2017, and for other purposes. C.R. NO. SUBJECT COMMITTEE 20-20 Approving and accepting grant in the amount of R&D ¥21,270,000 from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist the fisheries development program of the state of Pohnpei, including all the terms and conditions of the assistance. PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-53 (dated and received 07/11/17) – Submitting the ALL RELEVANT supplemental budget request, a total of $6.3 million of COMMITTEES which $368,000 is in operations budget, $430,000 to grants, subsidies, contributions budget, and $5.5 million in CIP – budget for fiscal year 2017. 20-54 (dated and received 07/11/17) – Transmitting a proposed R&D bill to amend Section 404 of Title 24 of the FSM Code, to provide NORMA the discretion to exempt certain Long Line and Pole and Line fishing vessels from the prohibition of fishing on neighboring high seas areas. 20-55 (dated and received 07/11/17) – Transmitting a R&D resolution approving and accepting a grant in the amount

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of 21,270,000 (yen) from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist fisheries development program of the state of Pohnpei. MEMBER COMM. SUBJECT COMMITTEE NO 20-05 (dated 07/11/17 and received 07/12/17) – From the Hon. INFO. Esmond B. Moses, Vice Speaker of the 20th FSM Congress, sharing for information a letter from Mr. Kasio E. Mida, Senior Headquarters Executive, MRA, Inc., on C.B. No. 20-34 regarding the creation of a new FSM National Corporations Law. DEPARTMENTAL SUBJECT COMMITTEE COMM. NO. 20-12 (dated and received 07/05/17) – From the Hon. Lorin S. INFO. Robert, Secretary, Department of Foreign Affairs, sharing a copy of the Diplomatic Note No. 17-0137 from the U.S. Embassy, with an enclosed letter from Mr. Nikolao Pula, Acting Assistant Secretary of Insular Affairs, concerning the lifting of the suspension of public infrastructure grant assistance to the Government of the Federated States of Micronesia; and a copy of the Joint Statement signed by Vice President Yosiwo P. George and Mr. Pula. FOREIGN SUBJECT COMMITTEE GOVERNMENT COMM. NO. 20-10 (dated 07/05/17 and received 07/11/17) – From the Clerk INFO. of the Australian House of Representatives, Australian Parliament, inviting Vice Speaker to attend an Inter- Parliamentary Study Program from 23-28 November 2017.

Speaker Simina: Chairmen and members take note of the Referral Sheet for your planning purposes. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

C.B. No. 20-55 (2nd Reading): To further amend Public Law No. 19-124, as amended by

Public Laws Nos. 19-133, 19-140, 19-150, 20-05 and 20- 15, by amending section 4 thereof, to change the use of some funds previously appropriated therein, to fund priority

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infrastructure projects and other programs in the state of Pohnpei, and for other purposes.

Deferred 07/12/17 to today.

Speaker Simina: Short recess. Speaker Simina declared the Congress recessed at 10:31 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:31 a.m.

Speaker Simina: Congress comes back to session. Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move to withdraw the following Bills from your Committee on Ways and Means and put them on the Bill Calendar for action: C.B. Nos. 20-62 and 20-49. I so move.

Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that the following Bills (C.B. Nos. 20-62 and 20-49) be withdrawn from the Committee and put on the Calendar for first reading action. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bills, C.B. Nos. 20-62 and 20-49, are now placed on the Bill Calendar for first reading action. Short recess.

Speaker Simina declared the Congress recessed at 10:32 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:34 a.m.

Speaker Simina: Congress comes back to session. For the record, any relevant rules that may impede our action are suspended at this point with respect to the motion to withdraw and place. If there is no objection to that, Chairman Figir, again, you have the floor.

Chairman Figir: Thank you, Mr. Speaker. I move that we go down to the Resolution Calendar.

Chairman Perman: Second.

Speaker Simina: If there would be no objection, we will move down to the Resolution Calendar.

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RESOLUTION CALENDAR

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move that Congress place C.R. No. 20-17 on the Resolution Calendar for action.

Chairman Panuelo: Second.

Speaker Simina: It’s been moved and seconded that Resolution No. 20-17 be placed on our Resolution Calendar for action. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Resolution, C.R. No. 20-17, is now placed on the Resolution Calendar for action. Chairman Figir.

Chairman Figir: I move that Congress adopt Resolution No. 20-17.

C.R. No. 20-17: Setting the ceiling of the total funds estimated to be available for appropriation from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017.

Vice Speaker Moses: Second.

Speaker Simina: It’s been moved and seconded that Congress adopt Resolution No. 20-17. Discussion? If none, without objection, discussion is closed. Let’s vote. All those in favor of the motion to adopt C.R. No. 20-17 say ‘aye’ – opposed say ‘nay’. The motion is carried.

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I wish to withdraw and place Congress Resolution No. 20-20 on the Resolution Calendar for action.

Senator Konman: Second. Speaker Simina: It’s been moved and seconded that C.R. No. 20-20 be withdrawn and placed on the Resolution Calendar for action. Let the record reflect that the relevant rules are still suspended. Short recess.

Speaker Simina declared the Congress recessed at 10:37 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:38 a.m.

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Speaker Simina: Congress comes back to session. Chief Clerk, read the title of the Resolution (C.R. No. 20-20).

C.R. No. 20-20: Approving and accepting grant in the amount of ¥21,270,000 from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist the fisheries development program of the state of Pohnpei, including all the terms and conditions of the assistance.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I so move for the adoption of the said Resolution (C.R. No.20-20).

Chairman Perman: Second.

Speaker Simina: It’s been moved and seconded that Congress adopt Congress Resolution No. 20-20. Discussion?

Chairman Perman: Mr. Speaker.

Speaker Simina: Chairman Perman.

Chairman Perman: Thank you, Mr. Speaker. Good morning to you, Vice Speaker, Members, and all that are observing our session this morning. Mr. Speaker, just for Members’ information, according to google, ¥21,270,000 is equivalent to $187,837.70. Thank you.

Speaker Simina: Thank you, Chairman Perman for that education. I am sure you can now divide four times.

Acting Floor Leader Urusemal: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 10:39 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:40 a.m.

Speaker Simina: Congress comes back to session. We are still on discussion of the Resolution (C.R. No. 20-20).

Chairman Perman: Question.

Speaker Simina: Question has been called for. If there is no objection, debate is closed. Let’s vote. All those in favor of the adoption of C.R. No. 20-20 say ‘aye’ – opposed

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say ‘nay’. The motion is carried. Congress adopts the Resolution, C.R. No. 20-20. Next resolution.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: If there is no objection, we will now go back to item Eighteen, Bill Calendar.

BILL CALENDAR

C.B. No. 20-62 (1st Reading): To amend sections 1, 2, 3, 8 and 9 of Public Law No.

19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160 and 20-14, in order to appropriate $9,735,140 of additional funds from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, and for other purposes.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 10:42 a.m., subject to the call of the Chair.

Senator Robson U. Romolow entered and took seat in the Chamber at 10:43 a.m.

RECESS

The Congress reconvened at 10:55 a.m.

Speaker Simina: Congress comes back to session. Chairman Figir, after your convoluted explanation, make the motion for passage.

Chairman Figir: Thank you, Mr. Speaker. I move that Congress pass Congress Bill No. 20-62.

Vice Speaker Moses: Second.

Speaker Simina: It has been moved and seconded that Congress pass Congress Resolution No. 20-62. Discussion?

Chairman Figir: Mr. Speaker.

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I have the following oral amendment that I wish to make. On page 1, title, line 3, after, “appropriate”, delete “9,735,140” and insert

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“8,735,140” in lieu thereof. On the same page, section 1, line 6, delete “84,860,650” and insert “83,860,650” in lieu thereof. On page 19, section 9, line 9, after “sum of” delete “41,556,363” and insert “40,556,363” in lieu thereof. On page 23, line 3, delete “1,500,000”, and insert “500,000” in lieu thereof. I so move, Mr. Speaker.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered oral amendment by Chairman Figir be adopted. Any relevant rules that might impede our action are still suspended up to this point.

Chairman Gouland: Mr. Speaker, short recess.

Speaker Simina declared the Congress recessed at 10:59 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:59 a.m.

Speaker Simina: Congress comes back to session. We are still on discussion of the offered oral amendment by Chairman Figir. Any discussion? If none, without objection, discussion is closed on this offered oral amendment. Let’s vote. All those in favor of the offered oral amendment say ‘aye’ – opposed say ‘nay’. The motion is carried. The offered oral amendment by Chairman Figir is adopted. We now have C.B. No. 62, CD1. Any further discussion?

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: I rise on a point of privilege.

Speaker Simina: State your point.

Acting Floor Leader Urusemal: Thank you. I rise on a point of privilege to ask this Congress to join me and Chairman Figir in welcoming and recognizing an individual who is sitting in the gallery. It is very seldom that we get to introduce officials and constituents from Yap. I am happy to introduce for recognition the Deputy Director of Yap Health Services, Mr. Dominic Taruwemai, who is in the gallery. I understand he is here soliciting support of our use of vessels belonging to the National Government to Health Services Programs in the outer islands of Yap. I think he is also here to solicit support for dry docking of H1 (Hapilmohol 1) in getting a new vessel from the same Government. I ask that we give him a round of applause (applause).

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Speaker Simina: Thank you, Chairman Urusemal. We indeed welcome our friend. Yes, you are right. It is not that often we get officials, residence from our further state to the west, Yap State. Thank you for joining us this morning. We appreciate that. Any further discussion on the Bill (C.B. No. 20-62, CD1)?

Chairman Figir: Question.

Speaker Simina: Question has been called for. If there is no objection, discussion is closed. Let’s vote by roll call of Members. Chief Clerk.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Speaker, thirteen Members voted for.

Speaker Simina: For that reason, C.B. No. 20-62, CD1 is passed by Congress on first reading. It is very clear.

Chairman Figir: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 11:03 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:04 a.m.

Speaker Simina: Congress comes back to session. Next bill.

C.B. No. 20-49 (1st Reading): To appropriate the sum of $4,200,00 from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, for the purpose of funding

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public projects and social programs for the people of Yap, Kosrae, Pohnpei and Chuuk States, and for other purposes.

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move for the passage of Congress Bill No. 20-49.

Chairman Panuelo: Second.

Speaker Simina: It is moved and seconded that Congress pass on first reading C.B. No. 20-49. Discussion?

Acting Floor Leader Urusemal: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 11:05 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:06 a.m.

Speaker Simina: Congress comes back to session. We are still on discussion on C.B. No. 20-49. Any discussion? If none and if there are no objections, debate is closed. So let’s vote by roll call of Members.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Speaker, thirteen Members voted for.

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Speaker Simina: For that reason, C.B. No. 20-49 is passed by Congress on first reading.

Acting Floor Leader Urusemal: Point of information, Mr. Speaker.

Speaker Simina: State your point.

Acting Floor Leader Urusemal: There are thirteen Members, I cast a negative vote and how did we come up with thirteen voted yes?

Speaker Simina: We did not hear you cast your vote clearly. That is why the ruling, your vote is yes. If you want to say “no”, shout it out. Next bill.

C.B. No. 20-55 (2nd Reading): To further amend Public Law No. 19-124, as amended by

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move that the said Bill (C.B. No. 20-55) be passed on second and final reading.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-55. Discussion?

Senator Neth: Mr. Speaker.

Speaker Simina: Senator Neth.

Senator Neth: Thank you, Mr. Speaker. I have a floor amendment I wish to offer at this time. It has been distributed and it is rather lengthy. I so move.

Floor Amendment to C.B. No. 20-55 Offered by Senator Dion G. Neth

C.B. No. 20-55 is hereby amended to read as follows:

1. Title, line 2, delete “section 4”, and insert “sections 4 and 6” in lieu thereof. 2. Title, line 3 after “use”, insert “and allottee”. 3. Page 1, line 9, delete “975,000”, and insert “787,500” in lieu thereof.

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4. Page 1, line 11, delete “250,000”, and insert “0” in lieu thereof. 5. Page 2, line 12, delete “675,000”, and insert “737,500” in lieu thereof. 6. Page 2, between lines 11 and 12, insert the following: “(p) Matching fund for Kolonia-China Friendship center……………………………………. 20,000 (q) Likinlong, Lehiak Madolenihmw bridge/culvert……………………………………….. 10,000 (r) Kotouwar, Lehiak Madolenihmw bridge/culvert……………………………………….. 10,000 (s) Pohnpei State Court f Land Tenure Vehicle... 15,000 (t) Pohnpei State Court of Land Tenure (Vault, computers, scanners)………………………………… 7,500 7. Page 3, between lines 4 and 5, insert the following: “(k) Nan Mohs road maintenance………………... 15,000 (l) Pohnpei transportation/promotional activities…………………………………………….. 30,000 (m) Heavy equipment/coral materials…………... 12,500 (n) Sekere gym maintenance…………………… 5,000 8. Page 3, line 5, delete “675,000”, and insert “737,500” in lieu thereof. 9. Page 3, line 18, delete “50,000”, and insert “30,000” in lieu thereof. 10. Page 3, line 19, delete “87,700”, and insert “0” in lieu thereof. 11. Page 4, between lines 9 and 10, insert the following: “(w) Nipai, Wone secondary road………………… 20,000 (x) Nan mand secondary road…………………… 7,700 (y) Pahnmeiti secondary road…………………… 20,000 (z) Lukop secondary road………………………. 5,000 (aa) Kitti municipal government inauguration…… 7,500 (ab) Travel needs………………………………… 35,000 (ac) Peisou secondary road………………………. 20,000 (ad) Madolenihmw Municipal Court subsidy…… 10,000 (ae) Kitti Municipal Court subsidy……………… 15,000 (af) Pohnpei State Court of Land Tenure……….. 10,000 (ag) Pohnalap secondary road…………………… 20,000” 12. Page 4, line 10, delete “675,000”, and insert “737,500” in lieu thereof. 13. Page 4, line 22, insert “(j) Kamer-Eirke road improvement...... 42,500 (k) Matching fund for Kolonia-China Friendship Center 20,000”. 14. Page 5, line 1, after “Section 2”, insert the following: “Section 6 of Public Law No. 19-124, as amended by Public Laws Nos. 19-133, 19- 140, 20-05 and 20-15, is hereby further amended to read as follows: “Section 6. Allotment and management of funds and lapse date. All funds appropriated by this act shall be allotted, managed, administered and accounted for in accordance with applicable laws, including, but not limited to, the Financial Management Act of 1979. The allottee shall be responsible for ensuring that these funds, or so much thereof as may be necessary, are used solely for the purpose specified in this act, and that no obligations are incurred in excess of the sum

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appropriated. The allottee of the funds appropriated under section 2 of this act shall be the Governor of the State of Yap or his designee.The allottee of the funds appropriated under sections 3 and 4 of this act shall be the President of the Federated States of Micronesia or his designee; PROVIDED THAT, the allottee of funds appropriated under subsections 3(1)(a) and 3(1)(b) of this act shall be the Governor of Kosrae State or his designee, the allottee of funds appropriated under subsections 4(1)(c) through 4(1)(o), 4(2)(f), 4(4)(b), 4(4)(d), 4(4)(f), shall be the Pohnpei Transportation Authority (PTA); the allottee of funds appropriated under subsections 4(1)(a), 4(1)(b), 4(2)(c), 4(2)(d), 4(2)(e), 4(2)(g), 4(2)(h), 4(2)(i), 4(2)(j) and sections 4(3)(a) to 4(3)(v) shall be the Secretary of the Department of Transportation, Communications and Infrastructure or his designee; the allottee of funds appropriated under subsections 4(3)(aa) of this act shall be the Luhk en Moanlap of Kitti, the allottee of funds appropriated under subsections 4(3)(ad) of this act shall be the Chief Justice of Madolenihmw or his designee, the allottee of funds appropriated under subsection 4(3)(ae) of this act shall be the Chief Justice of Kitti or his designee, the allottee of funds appropriated under subsection 4(3)(af) of this act shall be the Presiding Judge, Pohnpei Court of Land Tenure or his designee. The allottee of the funds appropriated under section 5 of this act shall be the Governor of Chuuk State or his designee. The authority of the allottee to obligate funds appropriated by this act shall lapse on September 30, 2019. 15. Page 5, line 1, delete “Section 2”, and insert “Section 3” in lieu thereof.

Date: July 13, 2017 Introduced by: /s/ Dion G. Neth Dion G. Neth

Purpose of the amendment: To change the use and allottee of funds under this act for Pohnpei State.

Chairman Perman: Second.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:09 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:09 a.m. Speaker Simina: Congress comes back to session. We have an offered floor amendment to C.B. No. 20-55 by Senator Neth. Because of its length, we will dispense with its reading. It has already been moved and seconded that we adopt it. Discussion?

Senator Neth: Mr. Speaker.

Speaker Simina: Senator Neth.

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Senator Neth: I have further amendment to that amendment. On the first page, “11 (af)”, delete “10,000”, and insert “0”. On the next line “(ag)”, delete “20,000”, and insert “30,000”. I so move.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered oral amendment to the offered written amendment by Senator Neth be adopted. Let the record reflect that any relevant rules including the rule prohibiting substantive amendment on second and final reading are suspended. Discussion on the offered oral amendment? If none, without objection, let’s vote. All those in favor of the offered oral amendment to the written amendment by Senator Neth say ‘aye’ – opposed say ‘nay’. The motion is carried. The offered oral amendment to the written floor amendment is adopted. We are still on discussion of the offered floor amendment as further amended. Any further discussion? If none, let’s vote. All those in favor of the offered floor amendment to C.B. No. 20-55 as further amended say ‘aye’ – opposed say ‘nay’. The motion is carried. The amendment is adopted. We now have C.B. No. 55, CD1. Any further discussion? If none, let’s vote by roll call of Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

Speaker Simina: For that reason, C.B. No. 20-55, CD1 is passed by Congress on second and final reading.

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. Today is my lucky day. Again, I rise on a point of privilege.

Speaker Simina: Proceed.

Acting Floor Leader Urusemal: I wish to request the indulgence of this Congress to join me and Chairman Figir in welcoming a person from the State of Yap, residing here in Pohnpei. She is here inviting Members and staff, if they want to go on an aerial tour of Pohnpei and Chuuk and the outer islands, you will need to only pay $1,500 then you can go on the tour. In recognition, may I introduce Ms. Mary Tretnoff who is sitting in the gallery. Let’s give her a round of applause (applause).

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Speaker Simina: Thank you, Chairman Urusemal. I think it is easier to ask for some subsidy. Is that correct, Chairman Figir? But thank you for gracing our session Mary Tretnoff. Is there any other point of privilege? If none, Chief Clerk, next Bill.

C.B. No. 20-34, CD1 (2nd Reading): To enact a new chapter 1 of title 36 of the Code of the Federated States of Micronesia (Annotated), and to repeal the existing chapter 1 in its entirety, to renumber chapter 2 of title 36 of the Code of the Federated States of Micronesia as chapter 3, for the purpose of creating a new FSM National Corporations Law, and for other purposes. – R&D – (cf. SCR No. 20-13).

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Thank you, Mr. Speaker. I so move for the passage of the said Bill (C.B. No. 20-34, CD1) on second and final reading.

Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-34, CD1. Discussion? Short recess.

Speaker Simina declared the Congress recessed at 11:14 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:15 a.m.

Speaker Simina: Congress comes back to session. We are still on discussion on C.B. No. 20-34, CD1. Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I just want to put on record my appreciation to you and all the Members. Firstly, on your R&D Committee and all the rest of the Members who are here. Our appreciation also goes out to the Executive Branch and those who are active, especially our partners, MRA, who has contributed to the molding of the Bill (C.B. No. 20- 34, CD1), which is very voluminous, 290+ pages. As you can see, the R&D Committee Report (SCR No. 20-13) is 18-pages, which tries to summarize it. But I want to put on record the appreciations from the R&D Committee. This is a bill that was carried on from the Nineteenth Congress to the Twentieth Congress. I think this is quite a good achievement for the Nation in modernizing our old archived laws from the TDPI days, which has been some laws, regulations, laws were repealed to combine them into one corporate bill that can be very useful for the business that we are in with MRA in the registrations of Major Corporations in our Country. It is just a point to put on record, appreciation of your R&D Committee. Thank you, Mr. Speaker.

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Speaker Simina: Thank you, Chairman Panuelo. From the Chair, I would like to extend the appreciation to you, Chairman Panuelo and fellow members of the R&D Committee. It is a difficult task. But I know you went around the States solicited information and a comment from the States and this is the product. I also thank the Executive Branch for putting this task together and now it is something that we get. It will have a positive impact throughout our Nation but also from those who wanted to do business in the FSM. I think this is a good thing that we must establish. Chairman Urusemal, I know you are eager to say something.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker for reading my mind and allowing me to speak. Just an indirectly related comment, I hope that with the passage of this Bill (C.B. No. 20-34, CD1) on second and final reading and hopefully with the President’s signature approving it, that this October, this Nation will realize $150 million dollars. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Urusemal. I am looking at Chairman Figir. I think he wants to say something. Chairman Figir, you have the floor.

Chairman Figir: Thank you, Mr. Speaker. I also thank my Chairman for bringing that up. I would be even happier if I see that, but sometimes when you hope for something it does not really say, “it is coming.” It is not guaranteed. But it’s also an attempt/effort to see if things can improved. I wish I could see the $50 million in our General Fund so we can all walk around smiling. Let’s move on. I think it is a good undertaking we cannot just embark on something and see the result right away. Although, MRA name has been mentioned back and forth or all over, but it is not really the MRA Corporation, whose going to open the door for possible foreign investors. MRA is suggested because they are the first to venture into this area. Unlike any other types of businesses, there are sophisticated types of undertakings that it takes experts to make it work. With that again, I want to applaud and congratulate Chairman of R&D for a job – or I should say, “not yet” – well done in advance, Chairman. And I move for the previous question.

Chairman Panuelo: Second.

Speaker Simina: It is moved and seconded that the debate be closed. If there is no objection, debate is closed. Let’s vote by roll call of Delegations. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

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Speaker Simina: For that reason, C.B. No. 20-34, CD2 is passed by Congress on second and final reading. Next bill.

C.B. No. 20-59 (2nd Reading): To further amend Public Law No. 18-70, as amended by

Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19- 41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139, 20-07 and 20-15 by amending section 4 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Pohnpei State, and for other purposes.

Speaker Simina: Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-59) on second and final reading.

Senator Konman: Second.

Speaker Simina: It has been moved and seconded that Congress pass C.B. No. 20-59 on second and final reading. Any discussion? If none, without objection, discussion is closed. Let’s vote by roll call of Delegations. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

Speaker Simina: The Bill, C.B. No. 20-59, is passed by Congress on second and final reading. Next bill.

C.B. No. 20-58 (2nd Reading): To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended, by amending sections 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management, Climate Change and Emergency Management, to empower the President of the Federated States of Micronesia to transition the functions of the dissolved office, and for other purposes.

Speaker Simina: Chairman Romolow.

Chairman Romolow: Thank you, Mr. Speaker.

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Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:23 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:23 a.m.

Speaker Simina: Congress comes back to session. Chairman Romolow.

Acting Floor Leader Urusemal: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 11:23 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:26 a.m.

Speaker Simina: Congress comes back to session. Chairman Romolow, you have the floor.

Chairman Romolow: Thank you, Mr. Speaker. I make a motion to defer action on C.B. No. 20-58 to next session of Congress, September. I so move.

Acting Floor Leader Urusemal: Second.

Speaker Simina: It has been moved and seconded that Congress defer action on C.B. No. 20-58 to the next session of Congress in September. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Bill, C.B. No. 20-58, is deferred to the next session of Congress. Next bill.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: Short recess. Speaker Simina declared the Congress recessed at 11:26 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:28 a.m.

Speaker Simina: Congress comes back to session. Chief Clerk, next item.

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RESOLUTION CALENDAR

None

INTRODUCTION OF BILLS

C.B. No. 20-60: Introduced by: Floor Leader Harper (By request) Assigned to: W&M Date introduced: July 13, 2107

To amend sections 1, 2, 8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19- 160 and 20-14, in order to appropriate $6,270,448 of additional funds from the General Fund of the Federated States of Micronesia for the Fiscal Year ending September 30, 2017, and for other purposes.

C.B. No. 20-61: Introduced by: Floor Leader Harper (By request) Assigned to: R&D Date introduced: July 13, 2107

To further amend section 404 of title 24 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Law No. 19- 169, to grant the National Oceanic Resource Management Authority (NORMA) the discretion to exempt a fishing vessel from the prohibition of fishing in neighboring high seas, and for other purposes.

C.B. No. 20-62: Introduced by: Senator Figir Assigned to: W&M Date introduced: July 13, 2107

To amend sections 1,2,3,8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19- 160 and 20-14, in order to appropriate $9,735,140 of additional funds from the General Fund of the Federated States of Micronesia for the Fiscal Year ending September 30, 2017, and for other purposes.

INTRODUCTION OF RESOLUTIONS

C.R. No. 20-20: Introduced by: Floor Leader Harper (By request) Assigned to: R&D Date introduced: July 13, 2017

Approving and accepting grant in the amount of ¥21,270,000 from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist the fisheries development program of the

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state of Pohnpei, including all the terms and conditions of the assistance.

MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Speaker Simina: Any miscellaneous business?

Senator Aritos: Mr. Speaker.

Speaker Simina: Senator Aritos, you have the floor.

Senator Aritos: Thank you, Mr. Speaker. I want to take this opportunity to introduce one of our visitors from Chuuk observing our session this morning, the Administration of the Chuuk Hospital Junior Nomau (applause). Thank you.

Speaker Simina: I heard he is going to be removed, but I do not know. Maybe that is just a rumor (laughter). Any other miscellaneous business?

Chairman Romolow: Mr. Speaker.

Speaker Simina: Chairman Romolow.

Chairman Romolow: Thank you, Mr. Speaker. Again, good morning to you and the Members. I must apologize to the Chairman of the Special Committee on Climate Change. I know it has to do with his jurisdiction on the Bill (C.B. No. 20-58) and I did not consult with him about the decision that I have taken. I wish that it is a good decision, which we can work together to come up with hearings that we can conduct with the Department. Thank you.

Speaker Simina: Thank you, Chairman Romolow. You can work together on this. It gives you time to deliberate some more on the subject matter. Any other miscellaneous business?

Acting Floor Leader Urusemal: Short recess, Mr. Speaker. Speaker Simina declared the Congress recessed at 11:30 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:33 a.m.

Speaker Simina: Congress comes back to session. If there is no further miscellaneous business, let us proceed to Announcements.

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ANNOUNCEMENTS

Speaker Simina: Chairman Welly.

Chairman Welly: No announcements. Thank you.

Speaker Simina: Chairman Figir.

Chairman Figir: I am on my sleeping mode.

Speaker Simina: Sleep some more. Chairman Alik.

Chairman Alik: No announcements, Mr. Speaker.

Speaker Simina: Chairman Perman.

Chairman Perman: No announcements, Mr. Speaker.

Speaker Simina: Chairman Romolow.

Chairman Romolow: None.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: I have no announcements. Thank you.

Speaker Simina: Chairman Gouland. Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I wish to announce for your Committee on Education, which supposed to have seven members for a public hearing today at 2:30 p.m. relating to this freshly grant from ADB from the Department of Education. 2:30 p.m., in the Hearing Room and I ask the staff to notify the appropriate staff in the Executive. Thank you.

Speaker Simina: Thank you, Chairman Urusemal. Provide lunch for members and I am sure you will have your seven members. Acting Floor Leader Urusemal: That is why I said 2:30 p.m. so they can have lunch and then come.

Speaker Simina: Thank you, Chairman Urusemal for the announcement. Take note, members of the Education Committee, of that. Vice Speaker Moses. Senator Neth. Senator Aritos. Senator Konman. If there is no further business, short recess.

Speaker Simina declared the Congress recessed at 11:35 a.m., subject to the call of the Chair.

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RECESS

The Congress reconvened at 11:37 a.m.

Speaker Simina: Congress comes back to session. If there is no further business for today’s session, Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I move that this Congress stand in recess until tomorrow morning at 10:00 a.m. in Palikir.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that Congress stand in recess until tomorrow at 10:00 o’clock here in Palikir. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress now stands in recess until tomorrow at 10:00 a.m., here in Palikir.

Speaker Simina declared that the Congress stand in recess at 11:37 a.m., Thursday, July 13, 2017, until tomorrow, Friday, July 14, 2017, at 10:00 a.m.

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CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

DAY NINE Friday, July 14, 2017

The Ninth Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:39 a.m., Friday, July 14, 2017.

Speaker Wesley W. Simina presided.

A moment of silent prayer was observed.

The Chief Clerk called the roll. Eleven Members were present; Senator Gouland, Senator Romolow, and Floor Leader Harper were excused.

Senator Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-56 - (dated 07/12/13 and received 07/13/17) – Transmitted a bill to amend the appropriation of $500,000 for the open access entity.

-No. 20-57 - (dated 07/11/17 and received 07/13/17) – Transmitted a resolution accepting the financial grants to the Federated States of Micronesia in the combined amount of $8,300,000 from the Asian Development Bank to fund the project called Improving the Quality of Basic Education.

-No. 20-58 - (dated and received 07/13/17) – Transmitted a resolution confirming the appointment of Secretary Sihna Lawrence to represent the FSM Government in the Joint Trust Fund Committee.

-No. 20-59 - (dated and received 07/13/17) – Transmitted for action a resolution approving a grant assistance made available by the U.S. Department of Health & Human Services, Centers for Disease Control and Prevention in the amount of $417,164 to fund the FSM Public Health and Healthcare Emergency Preparedness Project managed by the FSM Department of H&SA.

Speaker Simina: Assign those Communications, Chief Clerk. Next item.

July 14, 2017 CONGRESSIONAL JOURNAL – DAY NINE– 1SS – 20CFSM

FSM SUPREME COURT COMMUNICATIONS

None

MEMBER COMMUNICATIONS

None

DEPARTMENTAL COMMUNICATIONS

-No. 20-13 - (dated 07/11/17 and received 07/13/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, presenting compliments and sharing a Note Verbale from the General Secretariat of the Council of the European Union in Brussels informing that, in accordance to Article 8.1 of the Agreement between the Federated States of Micronesia and the European Union on the short-stay visa waiver, both parties have completed their internal ratification procedures necessary for the entry into force of the Agreement.

Speaker Simina: Assign that Communication, Chief Clerk. Next item.

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

None

STATE COMMUNICATIONS

None

STATE SUPREME COURT COMMUNICATIONS

None

Chairman Panuelo: Mr. Speaker, point of privilege.

Speaker Simina: State your point, Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I have been informed that we have some officials, who are present in the Chamber, observing our session this morning. We have a very good friend of mine who is an important person who has joined us. We have here Nickntro Johnny, Associate Justice for Pohnpei State. He has served in many capacities with different positions in the Pohnpei State Government, and a very important part of our Pohnpei Community. May I kindly ask that we give a round of recognition? To recognize him for the service he has continued to do for the state of Pohnpei and for FSM in some respect. Let’s kindly welcome him and give him a round of applause (applause). Thank you.

July 14, 2017 CONGRESSIONAL JOURNAL – DAY NINE– 1SS – 20CFSM

Speaker Simina: Thank you, Chairman Panuelo. The Congress joins you in welcoming Judge Johnny. Are there any other points of privilege? If none, next item.

MUNICIPAL OR TOWN COMMUNICATIONS

None

FOREIGN GOVERNMENT COMMUNICATIONS

-No. 20-11 - (dated 05/08/17 and Received 07/13/17) – From the Hon. Shirin Sharmin Chaudhury, President of the 136th Assembly of the IPU; and Mr. Martin Chungong, Secretary General, IPU, sending the publication of the Results of the 136t Assembly and related meetings of the IPU, held in Dhaka, Bangladesh, from 1 to 5 April 2017.

Speaker Simina: Assign that, Chief Clerk. Order of the Day.

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

The Chief Clerk called attention to Awaiting List No. 20-08 for Standing Committee Reports, which are awaiting the 24-hour requirement.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION JULY 06, 2017 TO JULY 15, 2017

R E P O R T S A W A I T I N G R E Q U I R E M E N T S

NO. 20-08, 9TH DAY, FRIDAY, JULY 14, 2017, AT 10:00 A.M. REPORT NO. SUBJECT DATE AND TIME SCR No. 20-15 RE: C.R. No. 20-19, A resolution approving and 7/14/17 @ 10:00 A.M. accepting a U.S. Agency for International Development Grant in the amount of $240,000, to fund the Implementation of the Institutional Strengthening in PICS to adapt to climate change project, including all the terms and conditions of the assistance.” (Submitted By: Climate Change Committee) SCR No. 20-16 RE: P.C. No. 20-39, An act to amend section 389 and 7/14/17 @ 10:00 A.M. 391, and insert a new section 392, under chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated) as amended, pertaining to assets and Liabilities of the open access entity.” (Submitted By: T&C)

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Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 10:44 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:44 a.m.

Speaker Simina: Congress comes back to session. Chairman Alik, you have the floor.

Chairman Alik: Thank you, Mr. Speaker. Good morning. I move to withdraw and place on today’s Calendar Standing Committee Report No. 20-15.

Chairman Perman: Second.

Speaker Simina: It moved and seconded that the Standing Committee Report No. 20- 15 be placed on the Standing Committee Reports Calendar for action. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Are there any rules to suspend, Acting Floor Leader?

Acting Floor Leader Urusemal: I so move to suspend the relevant rules that may impede our actions on the Report (SCR. No. 20-15).

Chairman Perman: Second.

Speaker Simina: It has moved and seconded that any relevant rule that might impede our action on the Report (SCR No. 20-15) be suspended. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. All relevant rules that might impede our action on the Report (SCR No. 20-15) are suspended at this point.

Acting Floor Leader Urusemal: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 10:45 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened 10:49 at a.m.

Speaker Simina: Congress comes back to session. We are still on the Report (SCR No. 20-15). It’s been placed. Chairman Alik, make your motion for adoption.

Chairman Alik: Thank you, Mr. Speaker. I move for the adoption of the Report (SCR No. 20-15).

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-SCR No. 20-15, RE: C.R. No. 20-19, A resolution approving and accepting a U.S. Agency for International Development Grant in the amount of $240,000, to fund the Implementation of the Institutional Strengthening in PICS to adapt to climate change project, including all the terms and conditions of the assistance.” (Submitted By: Climate Change Committee)

Chairman Perman: Second.

Speaker Simina: It is moved and seconded that Standing Committee Report No. 20- 15 be adopted. Are there any discussions on the report?

Chairman Figir: Mr. Speaker.

Speaker Simina: Chairman Figir.

Chairman Figir: While I like the special – because to me it is an appetizer – so I said when you go to a restaurant, order an appetizer and when you see the special you become even curious. But my concern is addressed in this Committee Report (SCR No. 20-15). I wonder if we have somebody in mind to fill the position that we paid $20,000 dollars. I have one in mind. I would highly recommend this person because I think he fits this position that they are envisioning to or thinking of hiring for this position. But to me, and I know that when we see the green dollar sign, we jump for it. This is a small amount and they are dictating to us because they know that the Climate Change is an issue that is so important to us especially we are a country on the front line. My personal position and I hope that we take it seriously. I have said this on grants from the US and other countries. They just give us grant and we jump at it. But after those grants have been expended, nothing happened. There is no change, no improvement, and whatsoever. And especially this grant is coming from the U.S. I know that President Trump hates Climate Change. He thinks it is a hoax and I do not know why they are giving it to us. If they are serious, they should allow us to use the fund to hire real experts in Climate Change to make sure to have someone who is well into the issue to help us. And that is my concern. $20,000 dollars is just going to use to hire a person who is just like me doing nothing and not knowledgeable about the issue at hand. That is where I am coming from and that is why I did not sign this report (SCR No. 20-15), because I think they are just throwing appetizers at us and not really getting anything out of it. I just want that for the record.

Speaker Simina: Thank you, Chairman Figir. Yes, your points are well taken. But let’s hear from Chairman Alik.

Chairman Alik: Thank you, Mr. Speaker. The point touched by Chairman Figir is a very valid one and we also raised that with the witnesses that were with us during that public hearing. We also express our concern with that. But the explanation given to us is that it is really this fund that really built up the capacity they have in which we are having problem with for a quite awhile. With the indication by Chairman Figir, I am intending to delay our final decision on this until September session so I can further work with the Finance and the

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Office of OEM to see how we can work this out. But of course, $240,000 dollars is not much as mentioned by Chairman Figir. But in any case, the recommendation by the witnesses is for us to proceed on with it and hopefully we will do some improvement on this particular need of our nation. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Alik. Yes, I think as Chairman Figir used to say, “We can start with something and improve it as we go along.” Is there any further discussion on the report (SCR No. 20-15)? If none, debate is closed. There’s no objection to that. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Standing Committee Report No. 20-15 is adopted. Next report Chief Clerk.

Chairman Alik: Mr. Speaker.

Speaker Simina: Yes, Chairman Alik.

Chairman Alik: If I may, I also move to withdraw and place on today’s Calendar Standing Committee Report No. 20-16.

Chairman Perman: Second.

Speaker Simina: It is moved and seconded that Standing Committee Report No. 20- 16 be placed on Standing Committee Reports Calendar for action. The relevant rules are still suspended up to this point. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Report, Standing Committee Report No. 20-16, is now placed on the Calendar for action. Chairman Alik, continue, make a motion for adoption.

Chairman Alik: I so move for the adoption of the Report (SCR No. 20-16).

-SCR No. 20-16, RE: P.C. No. 20-39: “An act to amend section 389 and 391, and insert a new section 392, under chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated) as amended, pertaining to assets and liabilities of the open access entity.” (Submitted By: T&C)

Chairman Perman: Second.

Speaker Simina: It is moved and seconded that Congress adopt Standing Committee Report No. 20-16. Short recess.

Speaker Simina declared the Congress recessed at 10:55 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:56 a.m.

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Speaker Simina: Congress comes back to session. We are now on discussion on Standing Committee Report No. 20-16. Any discussion?

Chairman Perman: Question.

Speaker Simina: Question has been called for. If there is no objection, discussion is closed. Let’s vote. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Standing Committee Report No. 20-16 is adopted by Congress. Next report.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: Next item.

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-19.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-19, DAY 09, FRIDAY, 07/14/17, AT 10:00 A.M.

C.B. NO. SUBJECT COMMITTEE 20-63 To amend section 804 of title 53 of the Code of the H&SA Federated States of Micronesia (Annotated), to allow, beginning January 1, 2018, for old age benefits to be paid in full to recipients between the ages of 60 and 65, and for other purposes. 20-64 To amend section 9 of Public Law No. 19-118, as W&M amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160, 20-01 and 20-14, to clarify the use of funding for the Open Access Entity, and for other purposes. 20-65 To further amend Public Law No. 15-32, as amended by W&M Public Laws Nos. 15-36, 15-44, 15-57, 15-63, 15-72, 15-78, 16-03, 16-11, 16-33, 16-46, 17-12, 17-21, 17-33, 17-40, 18-17, 18-67, 18-85, 18-104, 19-17, 19-100 and

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19-157, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein to fund public projects and social programs for the people of Chuuk State, and for other purposes. 20-66 To further amend sections 1 of Public Law No. 16-18, as W&M amended by Public Laws Nos. 16-24, 16-32, 16-39, 16-45, 16-54, 16-67, 17-04, 17-14, 17-26, 17-39, 17-65, 18-27, 18-47, 18-80, 19-13 and 19-108 to change the use of certain funds previously appropriate therein to fund public project and social programs in the state of Chuuk, and for other purposes. 20-67 To further amend Public Law No. 15-80, as amended by W&M Public Law Nos. 16-04, 17-53, 18-37, 18-66, 19-14, 19-105 and 19-161, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein, for public projects and social programs in the state of Chuuk, and for other purposes. C.R. NO. SUBJECT COMMITTEE 20-21 Approving and accepting grants to the Federated States EDUC. of Micronesia in the total amount of $8,300,000 from the Asian Development Bank, to fund the Improving the Quality of Basic Education Project, including all the terms and conditions of the grants. 20-22 To confirm the nomination of Mrs. Sihna Neth W&M Lawrence to serve as a member of the Joint Trust Fund Committee, representing the Federated States of Micronesia, pursuant to sections 215 and 216 of the Compact of Free Association, as amended, between the United States and the Federated States of Micronesia and the Government of the United States of America. STATE COMM. NO. SUBJECT COMMITTEE

20-05 (dated and received 07/12/17) – From the Hon. Tulensa INFO. W. Palik, Speaker, 11th Kosrae State Legislature, conveying full support of the $1 million supplemental request for FSM housing programs across the states.

Speaker Simina: Chairmen and members of Standing Committees, take a look at the Referral Sheet and make your plans accordingly. Next item.

UNFINISHED BUSINESS

None

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BILL CALENDAR

C.B. No. 20-62, CD1 (2nd Reading): To amend sections 1, 2, 3, 8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160 and 20-14, in order to appropriate $8,735,140 of additional funds from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, and for other purposes.

Speaker Simina: Chairman Figir.

Chairman Panuelo: Short recess, Mr. Speaker.

Speaker Simina declared the Congress recessed at 10:58 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:00 a.m.

Speaker Simina: Congress comes back to session. Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move for the passage of the said Bill (C.B. No. 20-62, CD1) on second and final reading.

Chairman Welly: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-62, CD1. Discussion?

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal, you have the floor.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I believe I have a proposed floor amendment that I wish to make on the Bill (C.B. No. 20-62, CD1) on behalf of some of us. It has been printed, duplicated, and distributed to all Members. With your permission, I ask that it is not going to be read. Thank you.

Floor Amendment to C.B. No. 20-62, CD1 Offered by Senator Urusemal

C.B. No. 20-62 is hereby amended to read as follows:

1. Page 8, line 15, after “travel”, (Speaker and Members) delete “942,381” and insert “907,381” in lieu thereof.

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2. Page 9, line 21, after “contractual services”, (Kosrae delegation) delete “70,000” and insert “90,000” in lieu thereof. 3. Page 10, line 13, after “travel”, (Yap delegation) delete “10,000” and insert “25,000” in lieu thereof. 4. Page 8, line 19, (contractual services) delete “2,741,000” and insert “2,771,000” in lieu thereof. 5. Page 2, line 19, after “travel”, (Office of the President) delete “300,000” and insert “320,000” in lieu thereof. 6. Page 2, line 20, after “contractual services”, (Office of the President) delete “631,000” and insert “661,000” in lieu thereof. 7. Page 15, line 11, insert a new item “(h) POL and travel expenses for installation of Wi-Fi in the Outer Islands……………………..……$ 36,000” 8. Page 25, line 3, after “Renovation of Chuuk State Supreme Court”, delete “25,000” and insert “75,000” in lieu thereof.

Date: July 13, 2017 Introduced by: /s/ Joseph J. Urusemal Joseph J. Urusemal

Purpose of the amendment: To shift travel funds to delegation; increase Rep. Fund to Congress Presiding Officers; increase Rep. Fund to President’s Office; add section 8 items.

Speaker Simina: The motion is being made by Chairman Urusemal. Any second to it?

Chairman Figir: Second.

Speaker Simina: The motion has been seconded. Because of its length, we will dispense its reading. Any motion for suspension of rules?

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I move that the relevant rules especially the section on prohibition of substantive amendment on second reading be suspended.

Speaker Simina: It has been moved and seconded that the relevant rules specifically the rule prohibiting substantive amendment on second and final reading be suspended. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The relevant rules are suspended at this point. Discussion on the proposed amendment? If none, let’s vote. All those in favor of the adoption of the floor amendment to C.B. No. 20-62, CD1 say ‘aye’ – opposed say ‘nay’. The motion is carried. The floor amendment is now adopted. We now have C.B. No. 20-62, CD2.

Chairman Figir: Mr. Speaker.

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I yield to Chairman Panuelo.

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Speaker Simina: Chairman Panuelo, you have the floor.

Chairman Panuelo: Thank you, Mr. Speaker. I also thank the good Chairman on Ways and Means. Mr. Speaker, I wish to offer an oral amendment to C.B. No. 20-62, CD2. On page 12 – I hope I am right because there are two versions I have.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:02 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:04 a.m.

Speaker Simina: Congress comes back to session. Chairman Panuelo, you still have the floor.

Chairman Panuelo: Mr. Speaker, continuing my motion to offer an oral amendment to C.B. No. 20-62, CD2, on page 19, after line 7, insert “(r) high-level visit by PRC officials 35,000”. I so move, Mr. Speaker.

Acting Floor Leader Urusemal: Second.

Speaker Simina: It has been moved and seconded that the offered oral amendment by Chairman Panuelo be adopted. Discussion? Let the record reflect that the relevant rules are still suspended. If there is no further objection, discussion will be closed on that oral amendment. So let’s vote. All those in favor of the offered oral amendment say ‘aye’ – opposed say ‘nay’. The motion is carried. The oral amendment is adopted. We have C.B. No. 20-62, CD3. Any further discussion?

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I, with your permission, ask that the legal staff and our staff look at the title and everything that needs to be technically correct on the said Bill (C.B. No. 20-62, CD3).

Speaker Simina: It shall be noted. The legal staff and staff shall take further review of these amendments and see where they can make adjustments to the totals and subtotals and the title. Any further discussion?

Chairman Figir: Question.

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Speaker Simina: Question has been called for. If there is no objection, discussion is closed. Let’s vote by Delegations. Chief Clerk, call the roll.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

Speaker Simina: For that reason, C.B. No. 20-62, CD3 has passed by Congress on second and final reading. Next bill. Short recess.

Speaker Simina declared the Congress recessed at 11:07 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:08 a.m.

Speaker Simina: Congress comes back to session. Acting Floor Leader Urusemal.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I move to withdraw and place the following Bills on today’s Calendar for first reading action: C.B. Nos. 20-65, 20-66, and 20-67. I so move.

Senator Konman: Second.

Speaker Simina: It has been moved and seconded that the following Bills, C.B. Nos. 20-65, 20-66, and 20-67, be withdrawn and placed on the Bill Calendar for first reading action. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The relevant rules that might impede our action on the Bills (C.B. Nos. 20-65, 20-66, and 20- 67) are suspended. Acting Floor Leader Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I move that C.B. No. 20-65 be passed on first reading.

C.B. No. 20-65 (1st Reading): To further amend Public Law No. 15-32, as amended by

Public Laws Nos. 15-36, 15-44, 15-57, 15-63, 15-72, 15- 78, 16-03, 16-11, 16-33, 16-46, 17-12, 17-21, 17-33, 17-40, 18-17, 18-67, 18-85, 18-104, 19-17, 19-100 and 19-157, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein to fund

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public projects and social programs for the people of Chuuk State, and for other purposes.

Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that Congress pass on first reading C.B. No. 20-65. Discussion? If none, discussion is closed. Let’s vote by roll call of Members.

The Chief Clerk took the roll call by Members.

Senator Alik Aye Senator Aritos Aye Senator Figir Aye Senator Gouland Absent Floor Leader Harper Absent Senator Konman Aye Vice Speaker Moses Aye Senator Neth Aye Senator Panuelo Aye Senator Perman Aye Senator Romolow Absent Senator Urusemal Aye Senator Welly Aye Speaker Simina Aye

Chief Clerk: Mr. Speaker, eleven Members voted for, three absent.

Speaker Simina: For that reason, Congress has passed C.B. No. 20-65 on first reading. Next bill.

C.B. No. 20-66 (1st Reading): To further amend sections 1 of Public Law No. 16-18, as amended by Public Laws Nos. 16-24,16-32,16-39, 16- 45,16-54,16-67,17-04,17-14,17-26,17-39, 17-65,18-27,18- 47,18-80,19-13 and 19-108 to change the use of certain funds previously appropriate therein to fund public project and social programs in the state of Chuuk, and for other purposes.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I move that C.B. No. 20-66 be passed on first reading.

Senator Konman: Second.

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Speaker Simina: It has been moved and seconded that Congress pass C.B. No. 20-66 on first reading. Discussion?

Chairman Perman: Question. Speaker Simina: Question has been called for. If no objection, debate is closed. Let’s vote by roll call.

The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Speaker, eleven Members voted for, three absent.

Speaker Simina: For that reason, Congress has passed C.B. No. 20-66 on first reading. Next bill.

C.B. No. 20-67 (1st Reading): To further amend Public Law No. 15-80, as amended by

Public Law Nos. 16-04, 17-53, 18-37, 18-66,1 9-14, 19-105 and 19-161, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein, for public projects and social programs in the state of Chuuk, and for other purposes.

Speaker Simina: Chairman Figir.

Chairman Figir: I move for the passage of the said Bill (C.B. No. 20-67) on first reading.

Senator Konman: Second.

Speaker Simina: It has been moved and seconded that Congress pass on first reading C.B. No. 20-67. Discussion? If none, debate is closed. Let’s vote by roll call of Members.

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The Chief Clerk took the roll call by Members.

Chief Clerk: Mr. Speaker, eleven Members voted for, three absent.

Speaker Simina: For that reason, Congress has passed C.B. No. 20-67 on first reading. Next bill.

C.B. No. 20-49 (2nd Reading): To appropriate the sum of $4,200,00 from the General Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, for the purpose of funding public projects and social programs for the people of Yap, Kosrae, Pohnpei and Chuuk States, and for other purposes.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:14 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 11:22 a.m.

Speaker Simina: Congress comes back to session. Chairman Panuelo, you have the floor. Chairman Panuelo: Mr. Speaker, I wish to offer a floor amendment to C.B. No. 20-49. It has been distributed to all Members. It is a lengthy one so I request that we dispense with its reading.

Floor Amendment to C.B. No. 20-49 Offered by Senator David W. Panuelo

C.B. No. 20-49 is hereby amended to read as follows:

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1. Page 1, between lines 11 and 12, insert the following: “(a) Office of Planning and Budget (OPB) and Office of Administrative service (OAS) finance conference in November 2017… ...... $ 7,000 (b) Office of Planning and Budget (OPB) desktop Computers………………………………………………...… 2,500 (c) Fadaraii water system improvement……………...… 13,000 (d) 4/4 Pick up trucks for use on Satawal and Fais islands ($35,000 each)……………………………………… 70,000 (e) Council of Tamol (COT) office rental for 3 years….. 10,800 (f) Faith Christian Academy classroom construction….. 255,000 (g) Gachpar Woman community center………………... 28,500 (h) St. Mary’s school…………………………………… 20,000 (i) Yap Catholic High School………………………….. 28,200 (j) Yap Delegation outreach program………………….. 100,000 (k) Neighboring Islands Central High School (NICHS) pickup truck………………………………………………… 35,000 (l) Payments for prior current obligations to Island Mortuary Services…………………………………………… 30,000” 2. Page 1, between lines 15 and 16, insert the following: “(a) Bachelor Program ...... $ 30,000 (b) Kosrae High School lunch program……………….... 40,000 (c) Kosrae Department of Health subsidy……………… 10,000 (d) purchase of outboard moters…………………...…… 15,000 (e) Scholarships for Kosraean students……………...…. 60,000 (f) Payments for outstanding balances for Kosraean students at COM-FSM Institute; PROVIDED THAT student with a GPA of 2.00 and/or withdrawal of classes are not eligible………………………………………………………. 30,000 (g) Payment for laptop computers……………………… 5,000 (h) Project for clearing of mangrove channels…………. 10,000 (i) Delegation outreach/travel………………………….. 25,000 (j) Purchase of Mini Excavator...... 15,000 (k) Tuition payment for Kosraean students at Xavier High School………………………………………………… 15,000 (l) Contributions to community activities/events/programs 10,000 (m) PhD Candidate tuition costs at Concordia University 20,000 (n) Walung Choir travel needs………………………….. 15,000 (o) Supplemental funding for Utwe Road improvement.. 39,000 (p) Malem Farmers Association (equipment purchase)… 35,000 (q) Community Outreach and Advocacy Program/travel.. 20,000 (r) Fenet farm road improvement………………………. 3,000 (s) Ka farm road improvement………………………..... 5,000 (t) Kosrae State referral program/Pharmaceutical supplies 50,000 (u) Lelu water catchments……………………………… 15,000 (v) Agriculture projects………………………………… 146,000

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3. Page 2, between lines 1 and 2, insert the following: “(a) Pohnpei Liberation Day activities ...... $ 15,000 (b) Pohnpei Senior Citizens Association operation/ cultural day/summer camp/senior citizens day………...…… 15,000 (c) Sekere Youth Center…………………………...…… 35,000 (d) Nahs En Pohnrakied matching fund…………...…… 20,000 (e) Pohnpei beautification/cleaning equipments……….. 20,000 (f) Paies new secondary road…………………………... 20,000 (g) Solor lights/LED lights……………………………… 10,000 (h) Medical referalls…………………………………….. 10,000 (i) Community water projects………………………….. 10,000 (j) Pehleng Community Conservation (Boat/Outboard motor)……………………………………………………….. 10,000 (k) Sapalapw, Madolenihmw road paving……………… 50,000 (l) Nan Pworen Ais, Madolenihmw road paving/ maintenance………………………………………………… 30,000 (m) Saladak road paving………………………………… 20,000 (n) Outreach program…………………………………… 10,000 (o) UCCP/Summit Planning Committee Women………. 15,000 4. Page 2, between line 2 and 3, insert the following: “(a) Transportation needs ...... $ 30,000 (b) Lewetik road paving………………………………… 120,000 (c) Sekere road paving………………………………….. 30,000 (d) Likie road maintenance……………………………… 35,000 (e) Purchase of cleaning equipment…………………….. 4,000 (f) Gang chairs for Pohnpei hospital…………………… 7,500 (g) Sokehs ridge road/corals and equipment rental…….. 20,000 (h) Purchase of solar/LED lights……………………….. 40,000 (i) Corals/equipment rental…………………………….. 13,500” 5. Page 2, between lines 3 and 4, insert the following: “(a) Pohn Areu secondary road...... $ 50,000 (b) Medical referral……………………………...……… 20,000 (c) Section V China road……………………………….. 20,000 (d) Pirenleng Eir secondary road……………………….. 15,000 (e) Upper Pohnlangas road………………………...…… 15,000 (f) Sapwalapw water system…………………………… 30,000 (g) Students’ financial assistance………………………. 10,000 (h) Pohnpei Trailways, Inc. contribution……………….. 5,000 (i) Nanseping secondary road………………………….. 10,000 (j) Nan Mand sewing project…………………………... 10,000 (k) Ipwitik Church……………………………………… 5,000 (l) Kitti Beautification (USCP-SP)…………………….. 5,000 (m) Secondary roads improvement……………………… 105,000” 6. Page 2, between lines 4 and 5, insert the following: “(a) Kepin Awak Bridge Completion… ...... $ 30,000 (b) Souna culvert……………………………………….. 25,000

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(c) Nan U culvert……………………………………….. 25,000 (d) Eirke road paving Andon secondary road………...… 50,000 (e) Lewetik road paving………………………………… 44,000 (f) Road beautification equipment……………………… 20,000 (g) Medical referral program……………………………. 15,000 (h) MCT Bill Raynor scholarship fund…………………. 10,000 (i) MCT computers and equipment……………………... 6,000 (j) Pingelap Municipal Government subsidy…………… 25,000 (k) Mwokiloa Municipal Government subsidy…………. 25,000 (l) School text books/Library needs……………………. 25,000” 7. Page 2, between lines 9 and 10, insert the following: “(a) Housing renovation/repair/improvement ...... $ 50,000 (b) Fishing project…………………………………….... 60,000 (c) Land Transportation………………………………… 40,000 (d) Contribution to State, Municipal and Community events, activities and programs……………………………... 20,000 (e) Students’ financial assistance………………………. 10,000 (f) Family Metting Hall construction subsidy………….. 20,000 (g) Municipal offices/facilities construction and improvement………………………………………………… 70,000 (h) Allottee’s administrative support service (including employees’ social security premium arrears…………..……. 10,000 (i) Leadership/patients/students travel needs…………… 20,000” 8. Page 2, between lines 10 and 11, insert the following: “(a) Mortlocks Islands Community, Traditional and Municipal events and activities...... $ 300,000” 9. Page 2, between lines 11 and 12, insert the following: “(a) Housing and community rehabilitation… ...... $ 90,000 (b) Food security…………………………………...…… 40,000 (c) Allottee’s administrative support services………….. 20,000 (d) Municipal subsidy…………………………...……… 25,000 (e) Travel needs………………………………………… 30,000 (f) POL/Freight/Charters……………………………….. 10,000 (g) Fishing project……………………………………… 40,000 (h) Sewing project……………………………………… 10,000 (i) Payment for prior obligations (Weno Election office) 5,000 (j) Students’ financial assistance………………………. 20,000 (k) Human repatriation…………………………………. 10,000” 10. Page 2, between lines 12 and 13, insert the following: “(a) Housing renovation… ...... $ 60,000 (b) Students’ financial assistance………………………. 20,000 (c) Freely Associated States Athletic Club travel needs.. 8,000 (d) Municipal governments’ subsidies…………………. 40,000 (e) Land transportation…………………………………. 15,000 (f) Contributions to Associations in Hawaii, Saipan, Guam and Mainland U.S……………………………………. 30,000

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(g) Purchase of Pharmaceuticals/medicine……………… 30,000 (h) Southern Namoneas Law Enforcement Initiative…… 17,000 (i) Southern Namoneas Development Authority administrative support services…………………………...… 25,000 (j) Medical referral/repatriation……………………....… 10,000 (k) POL……………………………………………....…. 10,000 (l) Leadership travel needs………………………...…… 20,000 (m) payment for prior obligations…………………....….. 10,000 (n) Humanitarian assistance…………………………….. 15,000 (o) Southern Namoneas delegation to Chuuk State Legislature…………………………………………………… 10,000 11. Page 2, between lines 13 and 14, insert the following: “(a) Students’ financial assistance ...... $ 25,000 (b) Leaders travel/community outreach and advocacy program…………………………………………………...… 65,000 (c) Payment for prior obligations…………………....…. 50,000 (d) Humanitarian assistance…………………………….. 30,000 (e) Medical referral and repatriations of human remains.. 20,000 (f) Sewing project……………………………………… 20,000 (g) Fishing project……………………………………… 30,000 (h) Housing improvement/renovation/repair…………… 30,000 (i) Witaw community hall…………………………….... 10,000 (j) Adminstrative support services for Faichuk Development Authority……………………………………………………. 10,000 (k) Replanting of coconut tree project………………….. 10,000” 12. Page 2, between lines 14 and 15, insert the following: “(a) Dispensary Boat/Motor… ...... $ 30,000 (b) Solar Freezer………………………………………… 35,000 (c) Solar Street lights…………………………………… 50,000 (d) Election District No. 5 Administrative support services 20,000 (e) POL Charter/Freight………………………………… 15,000 (f) Northwest Leadership Summit……………………… 10,000 (g) Patients travel needs/human remain repatriation…… 10,000 (h) Low income housing renovation……………………. 20,000 (i) Ruo Social Security Outstanding…………………… 10,000 (j) Leaders/students travel needs/COAP……………….. 10,000 (k) Pharmaceutical supplies…………………………….. 5,000 (l) Ulul Meeting Hall (Eorani Hall)……………………. 5,000 (m) Land acquisition…………………………………….. 40,000 (n) Contributions to Northwest Legislative delegation… 15,000 (o) Food relief program………………………………… 10,000 (p) Tamatam Multi-purpose renovation………………… 10,000”

13. Page 3, line 3, after “designee”, insert “PROVIDED THAT the allottee of funds appropriated under subsections 3(a) to 3(n) of this act shall be the Mayor of Lelu Town Government or his designee; the allottee of funds funds appropriated under

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subsections 3(o) to 3(p) of this act shall be the mayor of Tafunsak Municipal Government or his designee; the allottee of funds appropriated under subsections 4(1)(f), 4(1)(k), 4(1)(l), 4(1)(m), 4(2)(b) and 4(2)(c) of this act shall be the Pohnpei Transportation Authority (PTA); the allottee of funds appropriated subsections 4(2)(f), 4(2)(g), 4(2)(h), 4(2)(i) and 4(2)(j) shall be the Secretary of the Department of Transportation, Communications and Infrastructure or his designee.”

Date: July 14, 2017 Introduced by: /s/ David W. Panuelo David W. Panuelo

Purpose of the amendment: To specify the use and allottees of funds under this act for each of the states.

Chairman Figir: Second.

Speaker Simina: It has been moved and seconded that the offered floor amendment to C.B. No. 20-49 offered by Chairman Panuelo be adopted. Because of its length, we will dispense with its reading. Let the record reflect that the relevant rules are still suspended at this point. Discussion?

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: Thank you, Mr. Speaker. I have an oral amendment that I wish to offer on the amendment as proposed by Chairman Panuelo.

Speaker Simina: Go ahead.

Acting Floor Leader Urusemal: Page 1 of the written amendment, item 1, “(f)”, delete “270,000”, and insert “255,000” in lieu thereof. Under letter “(j) citizen outreach program”, delete “90,000” and insert “100,000” in lieu thereof. Item “(l)”, it should read “payments for prior and current obligations to the Island Mortuary Services”, delete “25,000” and insert “30,000” in lieu thereof. I so move, Mr. Speaker.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered oral amendment to the written amendment to C.B. No. 20-49 be adopted. Discussion?

Chairman Panuelo: Question.

Speaker Simina: Question has been called for. Without objection debate is closed. Let’s vote. All those in favor of the adoption of the offered oral amendment to the written

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floor amendment say ‘aye’ – opposed say ‘nay’. The motion is carried. The offered oral amendment is adopted. Any further discussion?

Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal, you have the floor.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. Just a spelling correction. Item “(g)” should spell “G-A-C-H-P-A-R”, not “T-A-R” – “Gachpar Community Center”. Thank you.

Speaker Simina: Thank you. Let the record reflect that technical correction.

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: I yield to Senator Aritos and then I will come after him. Thank you, Mr. Speaker.

Speaker Simina: Senator Aritos, you have the floor.

Senator Aritos: Thank you, Mr. Speaker. I have an oral amendment to make.

Speaker Simina: Go ahead.

Senator Aritos: on page 3, item 10 (b), delete “65,000” and insert “50,000”. Under letter “(k)”, create a new sub item “(l) boat repair 15,000”. I so move.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered oral amendment by Senator Aritos to the written floor amendment by Chairman Panuelo be adopted. Discussion? If no objection, discussion is closed. All those in favor of the offered oral amendment by Senator Aritos say ‘aye’ – opposed say ‘nay’. The motion is carried. The oral amendment by Senator Aritos is adopted. Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I make a motion to offer an oral amendment to my written floor amendment. If we can go to page 2, item 3 (n), where it says, “outreach program”, delete “25,000”, and insert “10,000” in lieu thereof. Create a new sub item “(o) UCCP/Summit Planning Committee/leadership on women and youth development summit 15,000”. I so move, Mr. Speaker.

Chairman Perman: Second.

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Speaker Simina: It has been moved and seconded that the offered oral amendment by Chairman Panuelo to the written floor amendment be adopted. Discussion? If no discussion, let’s vote. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The offered oral amendment by Chairman Panuelo is adopted. Any further discussion? Any further discussion on the offered floor amendment as further amended?

Chairman Figir: Question.

Speaker Simina: Question has been called for. If there is no objection, debate is closed on the offered floor amendment. Let’s vote. All those in favor of the adoption of the floor amendment to C.B. No. 20-49 say ‘aye’ – opposed say ‘nay’. The motion is carried. The floor amendment is adopted. We now have C.B. No. 20-49, CD1. Any further discussion on the Bill (C.B. No. 20-49, CD1)? If none, debate is closed. Let’s vote by roll call of Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

Speaker Simina: For that reason, Congress has passed C.B. No. 20-49, CD1 on second and final reading. Next bill.

Vice Speaker Moses: Mr. Speaker.

Speaker Simina: Vice Speaker Moses.

Vice Speaker Moses: Thank you, Mr. Speaker. I move to place on today’s Calendar C.A. No. 20-16.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:31 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:31 a.m.

Speaker Simina: Congress comes back to session. We are still on the Bill Calendar. Vice Speaker Moses, you have the floor.

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Vice Speaker Moses: I move for the re-passage of C.A. No. 20-16.

C.A. No. 20-16: To amend sections 389 and 391, and insert a new section 392, under Chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated) as amended, pertaining to assets and liabilities of the Open Access Entity, and for other purpose.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that C.A. No. 20-16 be re-passed by Congress. That is not subject to discussion. Roll call by Delegations.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal

Acting Floor Leader Urusemal: I yield the floor to Chairman Figir.

State of Yap: Chairman Figir Nay

Chief Clerk: Mr. Speaker, three States voted for.

Speaker Simina: For that reason, Congress overrides C.A. No. 20-16, which was vetoed by the President. Next bill. Chairman Panuelo.

Chairman Panuelo: Thank you, Mr. Speaker. I wish to make a motion to re-consider C.B. No. 20-59.

Acting Floor Leader Urusemal: Second.

Speaker Simina: It has been moved and seconded that Congress re-consider C.B. No. 20-59. Let’s vote. It requires at least three votes of Delegations. Chief Clerk.

The Chief Clerk took the roll call by States for reconsideration.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, all the four States voted for.

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Speaker Simina: The re-consideration motion is passed by Congress. Chairman Panuelo, make a motion for re-passage.

Chairman Panuelo: I so move for the passage of the said Bill (C.B. No. 20-59) on second reading. Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-59. Discussion?

Acting Floor Leader Urusemal: Mr. Speaker, on your behalf, I wish to offer a floor amendment to the Bill (C.B. No. 20-59). The proposed amendment has been printed, duplicated, and distributed. It is not a very big amendment but the written form is rather long so I ask that the reading of the proposed amendment be suspended.

Floor Amendment to C.B. No. 20-59 Offered by Speaker Wesley Simina

C.B. No. 20-59 is hereby amended to read as follows:

1. Title, line 3, delete “20-15 and insert “20-16” and delete “section 4”, and insert “sections 4 and 5” in lieu thereof. 2. Title, line 6, delete “Pohnpei State”, and insert “Pohnpei and Chuuk States” in lieu thereof. 3. Page 5, line 1, after “Section 2”, insert the following: “Section 5 of Public Law No. 18-70, as amended by Public Laws Nos. 18-98, 18-112, 18- 122, 19-07, 19-24, 19-44, 19-52, 19-73, 20-07 and 20-16, is hereby further amended to read as follows: “Section 5. Of the sum of $5,100,000 appropriated by this act, $2,150,000 is apportioned for public projects and social programs in the state of Chuuk. state of Chuuk ...... $ 2,150,000 (1) At-Large...... 400,000 (a) Community infrastructure and housing renovation ...... 39,729 (b) Contributions to State, Municipal and community activities/events/programs ...... 70,271 (c) Tonoas Goodwill Games 2014 ...... 10,000 (d) Municipal offices construction/ renovation ...... 14,000 (e) Women home economic projects ...... 20,000 (f) POL/Freight/Charters ...... $ 20,000 (g) Allottee’s administrative support services ...... 35,000 (h) Fishing projects...... 55,000 (i) Leadership/patients/students travel & COAP [44,000] ...... 49,000

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(j) Youth activities/programs/ equipment ...... 15,000 (k) Students’ financial assistance ...... 15,000 (l) Mortlock Goodwill Games 2014 ...... [5,000] 0 (m) 2014 Weno Goodwill Games obligations ...... 7,000 (n) Land transportation ...... 40,000 (o) Weno Municipal official travel...... 10,000 (2) Election District No. 1 ...... 350,000 (a) Lien Pwikial, Lien Pwakii, Nomeisepi and Kilo I subsidy...... 40,000 (b) Cooperative Associations, Non-governmental organizations contributions and subsidy...... 45,000 (c) Mortlock leadership subsidy ...... 25,000 (d) Home, housing and multipurpose building improvement and renovation ...... 100,000 (e) Students financial assistance ...... 20,000 (f) Food security, relief and poverty alleviation project programs ...... 50,000 (g) Mortlocks Goodwill Games and Mortlocks substate center projects ...... $ 25,000 (h) MIDA ...... 25,000 (i) Repatriation of remains/ medical referral...... 10,000 (j) Mortlocks Mayors Association ...... 10,000 (3) Election District No. 2 ...... 350,000 (a) Housing and Community Hall rehabilitation 50,000 (b) Fishing projects...... 30,000 (c) Students’ financial assistance ...... 20,000 (d) Food Security ...... 30,000 (e) Administrative cost/office rental for Election District No. 2...... 20,000 (f) Office of the Governor subsidy ...... 10,000 (g) Municipal subsidy ...... 34,000 (h) Public markets renovation ...... -0- (i) Human repatriation...... 10,000 (j) Water system projects ...... 5,000 (k) Road improvement/heavy equipment purchase ...... 70,000 (l) Land transportation need...... 30,000 (m) Weno election subsidy ...... 7,000 (n) Chuuk Women Council...... 5,000 (o) Leadership/patients/students travel need $...... 19,000

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(p) Youth activities/program ...... 10,000 (4) Election District No. 3 ...... 350,000 (a) Food Security, relief and poverty alleviation program ...... 54,376 (b) Fishing Project...... 100,000 (c) Municipal subsidy ...... 49,668 (d) Leadership travel (Traditional, Local and State and National Governments)...... 30,000 (e) Human repatriation...... 10,000 (f) Alternative energy and/or solar project 5,956 (g) Individual housing repair/ improvement after the aftermath of Typhoon Maysak ...... 50,000 (h) Purchase of vehicle for Election District No. 3 20,000 (i) Constituents outreach and advocacy program ...... 20,000 (j) Administrative support service for SNDA ...... 10,000 (5) Election District No. 4 ...... 350,000 (a) Fishing Project subsidy...... 60,000 (b) Low Income Housing subsidy ...... 40,000 (c) Humanitarian assistance subsidy ...... 50,000 (d) Youth activities and programs subsidy $...... 30,000 (e) Medical referral and repatriation of human remains subsidy ...... 20,000 (f) Administrative cost for Faichuk Development Authority...... 20,000 (g) Fishing markets subsidy ...... 10,000 (h) Sewing Project subsidy...... 20,000 (i) Municipal governments subsidy...... 80,000 (j) Students financial assistance ...... 20,000 (6) Election District No. 5 ...... 350,000 (a) Municipal governments’ subsidy...... 151,333 (b) Low income housing renovation, water well project and purchase of water well pumps ...... -0- (c) Northwest Social and Development activities/ operation/projects ...... -0- (d) Post Secondary financial grants for school year 2015 and 2016 ...... -0- (e) Contractual services for Northwest schools ...... -0- (f) Saramen Chuuk Academy high school subsidy ...... 25,000

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(g) Houk youth activities...... -0- (h) Tamatam Women Store...... -0- (i) Prior obligation for boat charters travel needs for support staff...... $ -0- (j) Seedling projects for farmers ...... -0- (k) Water tanks...... 28,000 (l) Northwest Islands leadership conference ...... 5,000 (m) Preparation for Northwest leadership summit ...... 6,400 (n) Northwest Island Development Authority, boat operation and their related expenses ...... 8,000 (o) Election District No. 5 office subsidy -0- (p) Food relief...... 13,742 (q) Solar power freezers and related costs ...... 25,000 (r) Low income housing renovation/community housing improvement 20,000 (q) Northwest Municipal prefab dispensaries and offices ...... 67,525” 4. Page 5, line 1, delete “Section 2”, and insert “Section 3” in lieu thereof.

Date: Introduced by: /s/ Wesley W. Simina Wesley W. Simina

Purpose of the Amendment: To change the use of funds under this act for Chuuk State.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered floor amendment to C.B. No. 20-59 be adopted. Because of its length, its reading will be dispensed with. The relevant rules are still suspended up to this point. Discussion on the offered floor amendment? If none, let’s vote. All those in favor of the adoption of the floor amendment to C.B. No. 20-59 say ‘aye’ – opposed say ‘nay’. The motion is carried. The floor amendment is adopted. We now have C.B. No. 20-59, CD1. Any further discussion on the Bill (C.B. No. 20-59)? If none, debate is closed. Let’s vote on the second and final reading. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Chairman Welly Aye State of Yap: Chairman Urusemal Aye

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Chief Clerk: Mr. Speaker, all the four States voted for.

Speaker Simina: For the reason, C.B. No. 20-59, CD1 is passed by Congress on second and final reading. Next bill.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: Next item.

RESOLUTION CALENDAR

C.R. No. 20-19: Approving and accepting a U.S. Agency for International Development grant in the amount of $240,000 to fund the implementation of the Institutional Strengthening in PICs to Adopt to Climate Change Project, including all the terms and conditions of the assistance. – Special Committee on Climate Change (SCOCC).

Speaker Simina: Chairman Alik.

Chairman Alik: Thank you, Mr. Speaker. I move for the adoption of the said Resolution (C.R. No. 20-19).

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that Congress adopt C.R. No. 20- 19. Discussion?

Chairman Figir: Mr. Speaker.

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. As I said earlier, I am having problem with this amount of money and the way it has been intended for. When one of your staff brought the Committee Report to me yesterday to sign, I refused to sign. I asked him what Climate Change is, he told me, “Can’t you see?” That is what he responded me with. So I said, “Yeah. I can see but I am getting old and I can’t see things clearly.” “So yeah, it is Climate Change and your name is on it.” Can I entertain an amendment to get my name out of this? This is not my project. Even, somebody misspelled my first name. Having said all that, let’s move forward with this.

Speaker Simina: Well, you can just blame the LC for all that.

Chairman Figir: Question.

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Speaker Simina: Question has been called for. Discussion is closed. Let’s vote. All those in favor of the adoption of Resolution No. 20-19 say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress adopts the Resolution, C.R. No. 20-19. Next resolution.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 11:39 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:47 a.m.

Speaker Simina: Congress comes back to session. Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I move that Congress withdraw and place on today’s Resolution Calendar Resolution No. 20-23. I so move.

C.R. No. 20-23: Requesting the President of the Federated States of Micronesia to appoint a task force to work on the issues raised by the Uniform Guidance pertaining to the U.S. financial regulations.

Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that Congress withdraw and place on today’s Calendar C.R. No. 20-23. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. The Resolution, C.R. No. 0-23, is placed on the Calendar. Let the record reflect that the relevant rules that might impede our action are suspended.

Acting Floor Leader Urusemal: Mr. Speaker, I move for the adoption of the said Resolution (C.R. No. 2023).

Chairman Welly: Second.

Speaker Simina: It has been moved and seconded that Congress adopt Resolution No. 20-23. Discussion?

Chairman Perman: Question.

Speaker Simina: Question has been called for. If there is no objection, debate is closed. Let’s vote. All those in favor of the adoption of Resolution No. 20-23 say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress adopts the Resolution, C.R. No. 20-23. Next resolution. Short recess.

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Speaker Simina declared the Congress recessed at 11:48 a.m., subject to the call of the Chair.

Senator Alik, Senator Figir, and Senator Welly left the Chamber at 11:48 a.m.

RECESS

The Congress reconvened at 11:51 a.m.

Speaker Simina: Congress comes back to session. We are still on the Resolution Calendar. Any other resolutions? If none, next item.

INTRODUCTION OF BILLS

C.B. No. 20-63: Introduced by: Senator Neth Assigned to: H&SA Date introduced: July 14, 2017

To amend section 804 of title 53 of the Code of the Federated States of Micronesia (Annotated), to allow, beginning January 1, 2018, for old age benefits to be paid in full to recipients between the ages of 60 and 65, and for other purposes.

C.B. No. 20-64: Introduced by: Floor Leader Harper (By request) Assigned to: W&M Date introduced: July 14, 2017

To amend section 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160, 20-01 and 20-14, to clarify the use of funding for the Open Access Entity, and for other purposes.

C.B. No. 20-65: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 14, 2017

To further amend Public Law No. 15-32, as amended by Public Laws Nos. 15-36, 15-44, 15-57, 15-63, 15-72, 15-78, 16-03, 16-11, 16-33, 16-46, 17-12, 17-21, 17-33, 17-40, 18-17, 18-67, 18-85, 18-104, 19-17, 19- 100 and 19-157, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein to fund public projects and social programs for the people of Chuuk State, and for other purposes.

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C.B. No. 20-66: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 14, 2017

To further amend sections 1 of Public Law No. 16-18, as amended by Public Laws Nos. 16-24, 16-32, 16-39, 16-45, 16-54, 16-67, 17-04, 17- 14, 17-26, 17-39, 17-65, 18-27, 18-47, 18-80, 19-13 and 19-108 to change the use of certain funds previously appropriate therein to fund public project and social programs in the state of Chuuk, and for other purposes.

C.B. No. 20-67: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 14, 2017

To further amend Public Law No. 15-80, as amended by Public Law Nos. 16-04, 17-53, 18-37, 18-66, 19-14, 19-105 and 19-161, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein, for public projects and social programs in the state of Chuuk, and for other purposes.

INTRODUCTION OF RESOLUTIONS

C.R. No. 20-21: Introduced by: Floor Leader Harper (By request) Assigned to: EDUC Date introduced: July 14, 2017

Approving and accepting grants to the Federated States of Micronesia in the total amount of $8,300,000 from the Asian Development Bank, to fund the Improving the Quality of Basic Education Project, including all the terms and conditions of the grants.

C.R. No. 20-22: Introduced by: Floor Leader Harper (By request) Assigned to: W&M Date introduced: July 14, 2017

To confirm the nomination of Mrs. Sihna Neth Lawrence to serve as a member of the Joint Trust Fund Committee, representing the Federated States of Micronesia, pursuant to sections 215 and 216 of the Compact of Free Association, as amended, between the United States and the Federated States of Micronesia and the Government of the United States of America.

MISCELLANEOUS COMMUNICATIONS

None

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MISCELLANEOUS BUSINESS

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I am just reading CNN –

Speaker Simina: Short recess. Speaker Simina declared the Congress recessed at 11:53 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 11:54 a.m.

Speaker Simina: Congress comes back to session. We are still on Miscellaneous Business. If no more miscellaneous, let’s go to Announcements.

ANNOUNCEMENTS

Speaker Simina: Any announcements? If none, Acting Floor Leader.

Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. I move that this Congress stand in recess until tomorrow at 10:00 a.m., sharp, here in Palikir.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that this Congress stand in recess until tomorrow at 10:00 a.m. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. Congress now stands in recess until tomorrow at 10:00 a.m.

Speaker Simina declared that the Congress stand in recess at 11:55 a.m., Friday, July 14, 2017, until tomorrow, Saturday, July 15, 2017, at 10:00 a.m.

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CONGRESSIONAL JOURNAL TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION

CLOSING DAY Saturday, July 15, 2017

The Tenth (Closing) Day of the First Special Session of the Twentieth Congress of the Federated States of Micronesia was called to order at 10:36 a.m., Saturday, July 15, 2017.

Speaker Wesley W. Simina presided.

A moment of silent prayer was observed.

The Chief Clerk called the roll. Nine Members were present; Senator Alik, Senator Gouland, Senator Romolow, Senator Welly, and Floor Leader Harper were excused.

Senator Joseph J. Urusemal was designated to be the Acting Floor Leader.

Acting Floor Leader Urusemal moved to dispense with the reading of the Journal; Chairman Perman seconded, and the motion carried by voice vote.

PRESIDENTIAL COMMUNICATIONS

-No. 20-60 – (dated 07/13/13 and received 07/14/17) – Transmitted a resolution nominating Mrs. Pelma Johnson Mingii to serve as a member on the Board of Regents of the College of Micronesia-FSM representing the National Government.

-No. 20-61 – (dated 07/13/17 and received 07/14/17) – Transmitted a resolution to convey FSM’s appreciation to the G20 Leaders for their steadfast stance and support for the Paris Agreement during their July 7-8, 2017 Summit in Hamburg, Germany.

Speaker Simina: Assign those Communications, Chief Clerk.

Chairman Panuelo: Mr. Speaker, point of privilege.

Speaker Simina: Chairman Panuelo, you have the floor.

July 15, 2017 CONGRESSIONAL JOURNAL – CLOSING DAY – 1SS – 20CFSM

Chairman Panuelo: Thank you, Mr. Speaker. Good morning to you, to all Members, and to those who are observing from the gallery. I wish to introduce my good friend and a hardworking individual who is observing our session this morning, on our behalf. Mr. Speaker, Mr. Mitaro Simina is here observing our session. He is the Vice Principal of PICS High School. I’ve had the opportunity of working with him in many important events of PICS and other related services that he has been doing. With all that, can we kindly recognize him for his service and his dedication in helping the Education of our students over many years? (Applause). Thank you.

Speaker Simina: Thank you, Chairman Panuelo. The Congress joins you in welcoming Mr. Simina to our session this morning. Any other points of privilege? If none, next item.

FSM SUPREME COURT COMMUNICATIONS

None

MEMBER COMMUNICATIONS

None

DEPARTMENTAL COMMUNICATIONS

None

AGENCY OR GOVERNMENTAL AUTHORITY COMMUNICATIONS

None

STATE COMMUNICATIONS

None

STATE SUPREME COURT COMMUNICATIONS

None

MUNICIPAL OR TOWN COMMUNICATIONS

None

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FOREIGN GOVERNMENT COMMUNICATIONS

None

ORDER OF THE DAY

STANDING COMMITTEE REPORTS

None

SPECIAL COMMITTEE REPORTS

None

ASSIGNMENT OF MEASURES AND COMMUNICATIONS

The Chief Clerk called attention to Referral Sheet No. 20-20.

TWENTIETH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST SPECIAL SESSION July 06, 2017 to July 15, 2017

COMMITTEE REFERRAL

REFERRAL SHEET NO. 20-20, DAY 10, SATURDAY, 07/15/17, AT 10:00 A.M.

C.R. NO. SUBJECT COMMITTEE 20-23 Requesting the President of the Federated States of W&M Micronesia to appoint a task force to work on the issues raised by the Uniform Guidance pertaining to the U.S. financial regulations. 20-24 Approving and accepting a grant in the amount of H&SA $417,164 from the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, to fund FSM Public Health and Healthcare Emergency Preparedness Project, including all the terms and conditions of the assistance.

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PRESIDENTIAL SUBJECT COMMITTEE COMM. NO. 20-56 (dated 07/12/13 and received 07/13/17) – Transmitting a W&M bill to amend the appropriation of $500,000 for the open access entity. 20-57 (dated 07/11/17 and received 07/13/17) – Transmitting a EDUC. resolution accepting the financial grants to the Federated States of Micronesia in the combined amount of $8,300,000 from the Asian Development Bank to fund the project called Improving the Quality of Basic Education. 20-58 (dated and received 07/13/17) – Transmitting a W&M resolution confirming the appointment of Secretary Sihna Lawrence to represent the FSM Government in the Joint Trust Fund Committee. 20-59 (dated and received 07/13/17) – Transmitting for action H&SA a resolution approving a grant assistance made available by the U.S. Department of Health & Human Services, Centers for Disease Control and Prevention in the amount of $417,164 to fund the FSM Public Health and Healthcare Emergency Preparedness Project managed by the FSM Department of H&SA. DEPARTMENTAL SUBJECT COMMITTEE COMM. NO. 20-13 (dated 07/11/17 and received 07/13/17) – From the Hon. INFO. Lorin S. Robert, Secretary, Department of Foreign Affairs, presenting compliments and sharing a Note Verbale from the General Secretariat of the Council of the European Union in Brussels informing that, in accordance to Article 8.1 of the Agreement between the Federated States of Micronesia and the European Union on the short-stay visa waiver, both parties have completed their internal ratification procedures necessary for the entry into force of the Agreement. FOREIGN SUBJECT COMMITTEE GOVERNMENT COMM. NO. 20-11 (dated 05/08/17 and Received 07/13/17) – From the INFO. Hon. Shirin Sharmin Chaudhury, President of the 136th Assembly of the IPU; and Mr. Martin Chungong,

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Secretary General, IPU, sending the publication of the Results of the 136th Assembly and related meetings of the IPU, held in Dhaka, Bangladesh, from 1 to 5 April 2017.

Speaker Simina: Chairmen and members take note of the Referral Sheet and plan accordingly. Next item.

UNFINISHED BUSINESS

None

BILL CALENDAR

C.B. No. 20-65 (2nd Reading): To further amend Public Law No. 15-32, as amended by

Speaker Simina: Chairman Figir.

Chairman Figir: Thank you, Mr. Speaker. I move for the passage of C.B. No. 20-65 on second and final reading.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that we pass on second and final reading C.B. No. 20-65. Discussion?

Senator Konman: Mr. Speaker.

Speaker Simina: Senator Konman.

Senator Konman: Thank you very much, Mr. Speaker. I have a written amendment I wish to offer to the said Bill (C.B. No. 20-65). I so move for its adoption.

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Floor Amendment to C.B. No. 20-65 Offered by Senator Derensio Konman

C.B. No. 20-65 is hereby amended to read as follows:

1. Page 12, line 2, delete “25,000”, and insert “3,729” in lieu thereof. 2. Page 12, line 4, delete “15,000”, and insert “31,490” in lieu thereof. 3. Page 12, line 5, delete “5,000”, and insert “4,818” in lieu thereof. 4. Page 12, line 6, delete “4,500”, and insert “4,278” in lieu thereof. 5. Page 12, line 22, delete “46,000”, and insert “31,185” in lieu thereof. 6. Page 12, between lines 22 and 23, insert the following: “(xix) Payment for current and prior obligations……….$ 10,000 (xx) Purchase of fiber class boat………………………. 10,000”

Date: July 15, 2017 Introduced by: /s/Derensio Konman Derensio Konman

Purpose of the amendment: To change the use of funds under this act for Chuuk State.

Chairman Panuelo: Second.

Speaker Simina: It has been moved and seconded that the offered floor amendment to C.B. No. 20-65 by Senator Konman be adopted. Because of its length, we will dispense with its reading. Let the record reflect that the relevant rules especially the one prohibiting substantive amendment on second and final reading are suspended at this point. Discussion on the offered floor amendment? If none, let’s vote. All those in favor of the adoption of the offered floor amendment to C.B. No. 20-65 say ‘aye’ – opposed say ‘nay’. The motion is carried. The amendment is adopted. We have C.B. No. 20-65, CD1. Short recess. Speaker Simina declared the Congress recessed 10:43 at a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:43 a.m.

Speaker Simina: Congress comes back to session. Acting Floor Leader Urusemal, you have the floor.

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Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. On your behalf, I propose a floor amendment to the same Bill (C.B. No. 20-65, CD1) as amended. It has been printed, duplicated, and distributed. I ask that the reading of the amendment be suspended. I move for its adoption.

Floor Amendment to C.B. No. 20-65, CD1 Offered by Speaker Wesley Simina

C.B. No. 20-65 is hereby amended to read as follows:

1. Page 8, line 19, delete “30,000”, and insert “26,870” in lieu thereof. 2. Page 8, line 21, delete “32,000”, and insert “5,000” in lieu thereof. 3. Page 8, line 23, retain “7,000”, and delete “18,000” in lieu thereof. 4. Page 9, line 2, delete “Leadership exposures and travel”, and insert “Travel needs” and delete “15,000”, and insert “21,860” in lieu thereof. 5. Page 9, line 12, delete “gear and equipment”, and insert “projects” and delete “25,000”, and insert “40,000” in lieu thereof. 6. Page 10, line 3, delete “22,630”, and insert “10,000” in lieu thereof.

Date: July 15, 2017 Introduced by: /s/ Wesley W. Simina Wesley W. Simina

Purpose of the amendment: To change the use of funds under this act for Chuuk State.

Chairman Figir: Second.

Speaker Simina: It has been moved and seconded that the offered floor amendment to C.B. No. 20-65, CD1 be adopted. Because of its length, we will dispense with its reading. The relevant rules are still suspended up to this point. Discussion? Chairman Figir: Question.

Speaker Simina: Question has been called for. If there is no objection, debate is closed. Let’s vote. All those in favor of the adoption of the offered floor amendment say ‘aye’ – opposed say ‘nay’. The motion is carried. The offered floor amendment is adopted. We now have C.B. No. 20-65, CD2. Any further discussion? Senator Perman: Question.

Speaker Simina: Question has been called for. If there is no objection, debate is closed. Let’s vote by roll call of Delegations. Chief Clerk.

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The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Absent State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, three four States voted for, State of Kosrae is absent.

Speaker Simina: For that reason, Congress has passed C.B. No. 20-65, CD2 on second and final reading. Next bill.

Chairman Panuelo: Mr. Speaker, point of privilege please.

Speaker Simina: State your point, Chairman Panuelo.

Chairman Panuelo: Thank you, Mr. Speaker. It is Saturday and I am in the mood of introduction. I did not see some individuals who are back there, hidden by the wall, but our good staff has given me their names. So on behalf of Senator Aritos, let me take this opportunity to introduce them. We have Mr. Augustine Antonio from Chuuk, a constituent of one or the rest of the Members of Chuuk Delegation. We also have Mairin Dobich mori and Ken Serious from Chuuk. The individuals who are here, I am sure they are here for a good reason. I, on behalf of the Chuuk Delegation, welcome you all to the session. Let’s give them a round of (applause). Thank you.

Speaker Simina: Thank you, Chairman Panuelo. Unfortunately, you cannot get votes from them. That is for me and for Senator Konman.

Chairman Panuelo: I am sure they have a lot of families here in PNI, Mr. Speaker.

Speaker Simina: Thank you very much for the introduction. They are welcome indeed in observing our session this morning. Any other points of privilege? If none, next bill.

C.B. No. 20-66 (2nd Reading): To further amend sections 1 of Public Law No. 16-18, as

amended by Public Laws Nos. 16-24, 16-32, 16-39, 16-45, 16-54, 16-67, 17-04, 17-14, 17-26, 17-39, 17-65, 18-27, 18-47, 18-80, 19-13 and 19-108 to change the use of certain funds previously appropriated therein to fund public project and social programs in the state of Chuuk, and for other purposes.

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Speaker Simina: Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-66) on second and final reading.

Acting Floor Leader Urusemal: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-66. Senator Konman.

Senator Konman: Thank you very much, Mr. Speaker. Again, I wish to offer a written amendment to the said Bill (C.B. No. 20-66). I so move, Mr. Speaker.

Floor Amendment to C.B. No. 20-66 Offered by Senator Derensio Konman

C.B. No. 20-66 is hereby amended to read as follows:

1. Page 13, line 16, delete “40,000”, and insert “39,474” in lieu thereof. 2. Page 13, line 17, delete “47,520”, and insert “47,242” in lieu thereof. 3. Page 13, line 22, delete “15,000”, and insert “12,984” in lieu thereof. 4. Page 14, line 2, delete “19,372”, and insert “17,772” in lieu thereof. 5. Page 14, line 6, delete “10,000”, and insert “8,797” in lieu thereof. 6. Page 14, line 8, delete “5,000”, and insert “4,830” in lieu thereof. 7. Page 14, line 11, delete “5,000”, and insert “4,693” in lieu thereof. 8. Page 2, between lines 11 and 12, insert the following: “(xvi) Travel needs………………………...... ……$ 10,835”

Date: July 15, 2017 Introduced by: /s/ Derensio S. Konman Derensio S. Konman

Purpose of the amendment: To change the use of funds under this at for Chuuk State.

Acting Floor Leader Urusemal: Second.

Speaker Simina: It has been moved and seconded that the offered floor amendment to C.B. No. 20-66 by Senator Konman be adopted. The relevant rules are still suspended and because of its length, we will dispense with its reading. Discussion on the offered floor amendment? If none, debate is closed. Let’s vote. All those in favor of the offered floor

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amendment to C.B. No. 20-66 say ‘aye’ – opposed say ‘nay’. The motion is carried. The amendment to C.B. No. 20-66 is adopted. We now have C.B. No. 20-66, CD1. Any further discussion?

Senator Perman: Question.

Speaker Simina: Question has been called for. Let’s vote. Short recess.

Speaker Simina declared the Congress recessed at 10:49 a.m., subject to the call of the Chair. RECESS

The Congress reconvened at 10:51 a.m.

Speaker Simina: Congress comes back to session. Let’s vote on C.B. No. 20-66, CD1 by Delegations. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Absent State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, three four States voted for, state of Kosrae is absent.

Speaker Simina: For that reason, C.B. No. 20-66, CD1 is passed by Congress on second and final reading. Next bill.

C.B. No. 20-67 (2nd Reading): To further amend Public Law No. 15-80, as amended by

Public Law Nos. 16-04, 17-53, 18-37, 18-66, 19-14, 19-105 and 19-161, by amending section 1 thereof, for the purpose of changing the use of certain funds previously appropriated therein, for public projects and social programs in the state of Chuuk, and for other purposes.

Speaker Simina: Chairman Figir.

Chairman Figir: I move for the passage of the Bill (C.B. No. 20-67) on second and final reading.

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Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that Congress pass on second and final reading C.B. No. 20-67. Discussion? If none, discussion is closed. Let’s vote by roll call of Delegations. Chief Clerk.

The Chief Clerk took the roll call by States.

State of Chuuk: Chairman Aritos Aye State of Pohnpei: Chairman Panuelo Aye State of Kosrae: Absent State of Yap: Chairman Urusemal Aye

Chief Clerk: Mr. Speaker, three four States voted for, state of Kosrae is absent

Speaker Simina: For that reason, Congress passes C.B. No. 20-67 on second and final reading. Next bill.

Chief Clerk: There are none, Mr. Speaker.

Speaker Simina: Next item.

RESOLUTION CALENDAR

None

Speaker Simina: Short recess.

Speaker Simina declared the Congress recessed at 10:54 a.m., subject to the call of the Chair.

RECESS

The Congress reconvened at 10:59 a.m.

Speaker Simina: Congress comes back to session. Next item.

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INTRODUCTION OF BILLS

C.B. No. 20-68: Introduced by: Senator Perman Assigned to: H&SA Date introduced: July 15, 2017

To further amend title 52 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 411 for the purpose of ensuring that no employee participating in the FSM Health Care Plan will be required to participate in any other health insurance plan, and for other purposes.

INTRODUCTION OF RESOLUTIONS

C.R. No. 20-23: Introduced by: Speaker Simina Assigned to: W&M Date introduced: July 15, 2017

Requesting the President of the Federated States of Micronesia to appoint a task force to work on the issues raised by the Uniform Guidance pertaining to the U.S. financial regulations.

C.R. No. 20-24: Introduced by: Floor Leader Harper (By request) Assigned to: H&SA Date introduced: July 15, 2017

Approving and accepting a grant in the amount of $417,164 from the U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, to fund FSM Public Health and Healthcare Emergency Preparedness Project, including all the terms and conditions of the assistance.

MISCELLANEOUS COMMUNICATIONS

None

MISCELLANEOUS BUSINESS

Speaker Simina: Any Miscellaneous Business? Chairman Urusemal.

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Acting Floor Leader Urusemal: Thank you very much, Mr. Speaker. As your Chairman of the Committee on Education, I just wish to indicate on record here on Miscellaneous Business that the grant applications for an amount of $8.3 million dollars to be given to the FSM by the Asian Development Bank, known as ADB, with in kind contribution of $1 million from the Government of the FSM. The decision of the Committee is to defer action on the Resolution in reporting out the grant mainly because of time constraints. The Communication came to Congress during the last few days of its current Special Session. With the amount of the grant, the Committee feels that it would require more time to review it and also because of the absence of appropriate staff from the Department of the FSM Education, National Government, to testify on the grant. We sat together with a consultant, someone from the Department of Justice and, I believe, the AO, (Administrator Officer), for the Department of Education. Based on those three reasons, the Committee decided to wait until September session, when there is more time and more appropriate staff, to testify on the needs of this grant. I am sure you would recall, Mr. Speaker, when we went through the public sector reform, the Government also enter into a loan scheme, I think, from the same organization which was called VSS or something to do with Education. That was taken place during the small Committee hearing, we did not get any adequate responses or answers as to what had happened with that loan and that program that the Government undertook in the mid 90’s. With the four going reasons, we recommended that we look at the grant in the next Congressional Session, which is on September. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Urusemal. Those are really valid points. As Chairman, it is at your discretion. How you want that to move forward is up to you. It is a lot of money. But I am also concern about the institution and the constitutional implication of this money coming directly to the National Government to implement. As we know, our Constitution gives the authority to the States to implement educational programs. I will ask that you also follow up with a letter to the Department of Education, informing them of that decision so they are aware. Because of the time of implementation, I understand it is supposed to be next month.

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, I just want to thank the two Chairmen for making that decision to defer the Resolution to the next session of Congress. I believe that is a very substantive matter, dealing with $9 million plus grant from ADB so the Members who need to know the full detail of how this would be implemented. I just want you, the Chairman of Education, especially the Chairman of H&SA to defer the Resolution to the next session in September.

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Mr. Speaker, if I may continue. It is not necessarily an issue but at some point, I think our Congress needs to take stock of activities that we go through and the work we do. Mr. Speaker, I just want to give some observations here to merely put on record. Firstly, I want to thank the Vice Speaker for taking helm when you were away. Mr. Speaker, I assure you that when you are away next time, you do not need to worry because the way we observe our Vice Speaker, coming from my heart, how I see our Vice Speaker conducted himself, he was as though as, has been the Speaker for many years. I assure you that when you were away, Mr. Vice Speaker performed a tremendous job. I thank the Vice Speaker for the very outstanding leadership he has provided during your absence. Also, saying that sometimes we need to take stock of what we do and appreciate the positive implications of it. I also want to merely put on record that I thank the Vice Speaker again for leading our Delegation and the members who went to Honolulu for that very important meeting. The two Governments, United States and the FSM Governments have signed results of which, I believe that all of us do understand what actions need to be done from here until the end of the fiscal year. I think that cloud has been cleared up. The major infrastructure will be implemented and suspension has been lifted. Mr. Speaker and Members, bear with me. Going on, I thank the other respective Chairmen for the work they have done. I want to begin with the Ways and Means Chairman. He has an incredible wealth of patience. The rest of us behave like we are the Chairmen of Ways and Means when we move with matters dealing with money. So I thank our good Chairman, Chairman Figir, for always being patient with us and the very able leadership that he has continued to lead our Nation and us by working hard with Members. Sometimes it is not easy to reach a consensus but to set aside $7 million of carry-over funds to go into our trust funds is an admirable one. So I always consider myself lucky to be working with Chairman Figir and the rest of the Members who are active in thinking about our future when we use our current resources that we set aside for the benefit of future generations. That being said, we also thank him the rest of you who have been working on setting the threshold. Mr. Speaker, sometimes we need to take that kind of discipline and apply to ourselves with the threshold on the appropriation on our Rep. Funds. I thank the leadership that you have provided, Mr. Speaker as well as the rest of the Members. Also, we do an audit on the PMU because a decision has been made so that when they exit we have some form of clear understanding on the performance in terms of how our resources are being used. Again, I thank the Chairman of Ways & Means for that. And again, I thank, reiterating, thanking Chairman of Education and Chairman H&SA for deferring that Resolution and the work they are doing in the respective areas that they are assigned. Mr. Speaker, the Chairman of T&C and I, – I know it’s tough – we have done some work that can help. I know it’s highly technical when we talk about FSMTC and World Bank. I, myself, am trying to understand the issues. It has been difficult but some of us have the strength in helping us understand more and I thank those members who are very strong in helping us to understand those difficult issues. I, especially, thank my two or three members of our delegation and that sometimes when I don’t get the full picture of these technical issues when

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we meet I get a clear understanding from it. So I thank my members of Pohnpei Delegation for that. Mr. Speaker, I know your Chairman of R&D here. I thank the members of R&D Committee for the major effort in passing the Corporate Bill. I know we have carried on and it took too long and I thank you for your patience– all of you. I believe that we can appreciate that MRA has started with very little and sometimes we say, “When are we going to get the big one?” But even without the big one I think revenue that we are getting from the MRA in terms of taxes, the major corporations from Japan are paying and to our treasury is one that we can appreciate. I believe we’re around $7 million up to that point. This kind of money is very important to the work that we are doing which is appropriating money to serve our nation. I believe the train will continue to be positive over the coming years and that Corporate Bill will help very much. Mr. Speaker, thee major one that was carried over from or will be is the Seabed Mining Bill, a very important one to set the framework on how we manage our minerals and our exclusive economical zone and beyond. Your Committee on R&D plans to report that during the September session. Mr. Speaker, I may have missed out some of the important points that we’ve touched on, but I think taking stock of our effort that we do, in total, I would say that this is a very productive short session. I thank you, Mr. Vice Speaker, the respective Chairmen, and all the Members for the very serious work that we have put into this session. Even though it is short, my observation is that it is very productive. And I look forward to working with all of you in September to continue the trend of caring for our Nation and the things that we do even with the public projects that just passed on second reading. I know very well that it is going to help a lot of our constituents that are waiting for the help that we, representative for the people will do for them. Mr. Speaker, I thank you for giving me the time to say a few words on the Miscellaneous Business. Thank you. Speaker Simina: Thank you very much, Chairman Panuelo. Those are some good observations and good words. I think we need to just do our job. I think that is the best way of judging the works of Congress. Just keep doing what we must do. Any other miscellaneous business from Members?

Chairman Perman: Mr. Speaker.

Speaker Simina: Chairman Perman.

Chairman Perman: Thank you, Mr. Speaker. Good morning to you, Vice Speaker, Acting Floor Leader, Members, and all of those that are observing our session this morning. Mr. Speaker, I just want to put on record that the Resolutions from the Department of Health are put on held or will be tackled during the Regular Session in September. One of the main reasons is because of the time constraint that we have and we all know our Legal Staff just returned from her trip. Also, by looking at most of the Resolutions that came to our office especially the recent one, as Chairman of Health, it started to make me think about us pulling

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down grants from the Compact. The Resolution regarding the Opioid is about the drugs relating to morphine or really high drugs. If you really read the Resolution, the purpose of this grant is to increase access to treatment, reduce some unmet treatment needs, or reduce Opioid overdose related. It is about $250,000 dollars. When we actually look into it and try to look at the stats and how much overdose and everything, we found out that ever since back then, we only have about eight incidents until today. When we look clearly into it, it is basically creating more jobs. I thought we have an issue of this problem here in the FSM. So it made me really wonder what are we really doing. Are we pulling all these grants just so we can create jobs? It made me think about it as a serious concern. We all know that the Compact is coming to an end. We are basically looking at health and education. When we go back, as Chairman of Health, when we talk about our health, if they ever raise the question, “What do you think about your NCDs?” After all the funding that we put into your Country, diabetes, hypertension, all of the NCDs, all the money we pump in, anything better? What really makes me concern is that getting a grant from ADB for $8 million dollar regarding Education, is the grant given to us under the Compact not enough? These are some issues that I am really concern about. Hopefully the people of FSM, especially my District, I should be here till the end of Compact. That is something that I want to make sure that I have an answer to when I get to the end of the Compact. We put so much money into your health. Can you tell me that today your health system is a better system from compare to before? On our first day of session, I asked the Department of Health to give me a stat of the NCDs. The reason why I shared with all Members is because after going through that report from them, I have more questions and answers. With all the money that pumped into our Health and this is the kind of report they give to us, I have more questions and answers. As a new Chairman of Health, we are going to try our very best. The money that we bring down to help our country, it is not just that we want to bring down money because it is out there, but we bring it down to make sure that it really goes out and do what it is supposed to do. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Perman for your candid observation of the grants that we have been receiving, how they’ve used or implemented, that is a standing question that will come up in our discussion with the United States when it comes to year 2023: “What have you done with the money that we have given you?”

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: Mr. Speaker, thank you for allowing me to speak again. When I was speaking a while ago, I do not want to pass the opportunity without saying how appreciative I am of our staff. I do not say it much even though I feel a lot how appreciative and thankful I am with the good work that our staff do for us. I start with the Chief Clerk and

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the Assistant Chief Clerk. Every time that I ask them to do something for me, they really do it with the diligence that I don’t expect because we have many things we do. So I want to start with them by saying how thankful I am for work they have done, including our LC who leads our Legal Staff for all the work they do and all the rest of the staff, including the Pages. It may not enough but this session I want to express by saying I am. The work that we do would not be possible without all the kinds of support they provide us. Mr. Speaker, I know you always say it but I thank you for giving me the opportunity to thank all the staff that are with us, including all maintenance staff, and our very own Sergeant At-Arms who is being dedicated to us and keeping this in order. Thank you all for the works you do to make sure the work is successful. Thank you, Mr. Speaker for giving me the opportunity.

Speaker Simina: Thank you very much, Chairman Panuelo. Any other miscellaneous business? Acting Floor Leader Urusemal: Mr. Speaker.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: Just a couple of words, Mr. Speaker. First, I just wish to note for the record that the Journal for this Special Session our very able Speaker, very able Vice Speaker will review and make technical corrections including additions to what I say on the floor, sometimes to make it more beautiful and correct my broken English. I move for the adoption for that motion.

Chairman Perman: Second.

Speaker Simina: It has been moved and seconded that the Speaker, Vice Speaker, and Acting Floor Leader will be responsible for making all the technical and otherwise other corrections to our Journals and other papers/records of this Congress. All those in favor of the motion say ‘aye’ – opposed say ‘nay’. The motion is carried. So be it.

Acting Floor Leader Urusemal: Secondly, Mr. Speaker, in addition to the “thanking” by Chairman Panuelo, I wish to point out and to thank an individual who is no stranger to Congress and Congress works, Mr. Ron Moroni who is helping our Legal Staff for this session. And to indicate here that unfortunately or depending on how you look at it, Mr. Moroni has indicated interest to work in Yap as the Attorney General for the State. He had, in writing, communicated to the Acting Attorney General and up to now he has not received any response from the Acting Attorney General whether he would be given the nomination to have the office of the Attorney General in Yap. I know Yap State has been without a really confirmed AG for the passed almost few years. The term of the Administration is winding down. I hope Yap would wake up and find it, in their favor, interest to nominate Mr. Ron

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Moroni for the AG. I thank him for helping and for his interest to help Yap State especially at this time, before the end of the amended compact. Thank you, Mr. Speaker and thank you Mr. Moroni.

Speaker Simina: Thank you, Chairman Urusemal. Any other miscellaneous business? If none other from Members, I just have a few items that I would like to share with you. On our budget, I would like to thank all the Chairmen and members of the respective standing Committee for doing a great job in moving forward in your hearings and budget hearings on the FY18 Budget. I just want to say that I would rather see us finish the budget in the first week of our next session, if that is possible. I will defer to our Chairman of Ways and Means on his expertise but the information given from the Chairmen and members of the Committees, to me that is duable. I think if we can continue finish up all the little matters that remain, I believe we can finish the budget in the first few days of the next session. This is just my wish for the budget. And of course, as you know the Audit for the FSM National Government came out really good. It is probably the best in the words of the Auditor himself. It is the best since the early 1990’s. I think that is something really good. We are moving in the right direction. At the same time, I thank Members for adopting that Resolution, urging the President to move forward on this uniform guidelines from the US Government, which will really impact the relationship with our States with respect to grants and even Compact Sector Grants. I wish we could continue to work with the Executive Branch to make sure that they move forward with that. I was given something, I think from Chairman Figir on the FSM National Government being designated as a compliant country with respect to the OECD global forum on tax sharing. I guess that has a lot to do with the statue that we passed. With that, I also congratulate Congress for stepping forward in making sure that t happens. I also would like to join those who have spoken earlier about our appreciation to the staff for all their hard works. They have been working extra hard for us. I just hope some of you, Members, will see it fit sometimes in the near future to also allow them something else, like overtime, when we are in session so those kinds of incentive will go a long way in supporting our hardworking staff. I join Chairman Urusemal in thanking Mr. Moroni for joining us this session. We look forward to also working with you when your time permits. I hope you get that nomination by the Yap State Government. Maybe Chairman Urusemal should call them and wake them up to let them know that there is a pending matter. We still have a lot of challenges ahead of us as well as several things on our plate. We really need your cooperation in making sure that we continue to work for the best interest of our Nation. Anything else?

Chairman Panuelo: Mr. Speaker.

Speaker Simina: Chairman Panuelo.

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Chairman Panuelo: Mr. Speaker, on your behalf and those members of the JCRP Committee, I want to share with the other Members that based on the decision we made, t the Committee will be meeting in the margins or set date. I think we set the date already for September prior to the September session. This is another matter I want to say that I am appreciative that we are moving on it in terms of organization of that JCRP Committee. And I look forward to the review of the budget, which would be presented to our Committee. Thank you, Mr. Speaker.

Speaker Simina: Thank you, Chairman Panuelo. Any other miscellaneous business, if no more, let us move on to Announcements.

ANNOUNCEMENTS

Speaker Simina: Chairman Figir.

Chairman Figir: No announcements.

Speaker Simina: Vice Chairman Neth. Chairman Perman.

Chairman Perman: No announcements, Mr. Speaker.

Speaker Simina: Chairman Aritos.

Chairman Aritos: None.

Speaker Simina: Chairman Panuelo.

Chairman Panuelo: No announcements, Mr. Speaker. Thank you.

Speaker Simina: Vice Chairman Konman. Senator Konman: No announcements, Mr. Speaker. Thank you.

Speaker Simina: Chairman Urusemal.

Acting Floor Leader Urusemal: None.

Speaker Simina: Vice Speaker Moses.

Vice Speaker Moses: No announcements, Mr. Speaker. Thank you.

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Speaker Simina: If there is no further business of this Congress, may we all stand? Based on our call, I hereby declare the First Special Session of the Twentieth Congress adjourn sine-die.

Speaker Simina declared that the Congress adjourned sine-die at 11:28 a.m., Saturday, July 15, 2017.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Standing Committee Reports

SPECIAL COMMITTEE REPORT NO. 20-02

RE: COMMITTEE TO WAIT ON THE PRESIDENT

JULY 10, 2017

The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia First Special Session, 2017

Dear Mr. Speaker:

Your Committee to Wait on the President, consisting of members Senator Paliknoa K. Welly, Senator Dion G. Neth, Senator Derensio S. Konman, and Senator Isaac V. Figir, was duly appointed on July 6, 2017. Senator Paliknoa K. Welly was designated as the Chairman.

The Committee met with the President and Vice President on July 7, 2017, at 12:30 p.m., in the President’s Meeting Room. Chairman Welly greeted the President, Vice President and key members of the Executive Branch on behalf of Congress, and thanked them for the opportunity to meet. Chairman Welly reported that Congress was in session and was ready to transact business.

The President greeted the Committee, and he presented an overview of a number of items that he would like to see Congress prioritize during this special session. The President’s priority list is as follows:

• Follow-Up on Suspension of Compact Infrastructure Grant Funding • World Bank Open Access Entity (OAE) Funding and FSM Telecom • Joint Committee on Compact Review and Planning (JCRP) • Supplemental Budget • Need for a New Government Ship

Follow-Up on Suspension of Compact Infrastructure Grant Funding The President expressed his appreciation to Vice Speaker Esmond B. Moses and the other members of Congress who attended meetings in Hawaii with representatives from the United States regarding the recent suspension of Compact Infrastructure Grant funding. The President noted, with pleasure, that the official suspension of funding has been lifted, but he also noted that the United States has indicated that various minor conditions must still be met before funding for individual projects will be restored. The President urged Congress to continue to monitor this issue throughout the process of restoring funding for all specific projects. It was noted that the current contract with the PMU Contractor is scheduled to end soon. The President encouraged oversight and ongoing dialogue

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throughout the search for new contractors to run the PMU and state-level infrastructure projects.

World Bank Open Access Entity (OAE) Funding and FSM Telecom The President noted that one bill (C.B. No. 20-26) has been signed into law (P.L. No. 20- 13) in an effort to comply with the World Bank’s conditions for the FSM to receive funding for the OAE project. Communications from the World Bank indicate, however, that this new law is not yet, by itself, sufficient to meet the required conditions. Your Committee noted that Congress has been actively involved in seeking a solution to the OAE funding issue. Your Committee stated that Congress would be asking the Executive Branch to draft and transmit to Congress a new bill to expand on the existing law in order to achieve compliance with the World Bank’s conditions.

Joint Committee on Compact Review and Planning (JCRP) The Secretary of Foreign Affairs Lorin Robert gave an update on the status of the Joint Committee on Compact Review and Planning (JCRP). He stated that the JCRP has held two meetings, and a third meeting is tentatively scheduled for early September. Secretary Robert reported that a Chairman has been named to the JCRP, Mr. Asterio Takesy. He also reported that the Committee is in the process of searching for an Executive Director, and will likely begin searching for other staff positions in the near future, including an economist and legal advisor.

Supplemental Budget The President stated that a supplemental budget bill would be forthcoming from the Executive Branch for Congress to act on during this session. The President asked that Congress respectfully consider the line items found in the supplemental budget bill.

Need for New Government Ship The President stated that the FSM Government has a substantial need for a new ship. He reported that the Voyager ship is aging and becoming increasingly insufficient to meet the travel needs of passengers. The President stated that he would be transmitting to Congress a proposal for a $10,000,000 appropriation for the building of a new ship, and he requested that Congress consider this proposal during this special session, or as part of the FY 2018 Budget Bill to be passed during the September Regular Session.

The President encouraged members of Congress to continue to work collaboratively with the Executive Branch, to help strengthen the relationship between the two branches.

The Committee stated that it would report the Executive’s priorities to the full body of Congress and do its best to work on the priorities as set forth by the President.

The meeting concluded with mutual agreement to move forward together on the above issues in a timely and cooperative manner, and to prioritize the most urgent items for this

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JULY 10, 2017 session. The Committee thanked the President for his hospitality in hosting the meeting, and for the luncheon meal provided. The Committee is submitting a brief report at this time. The Committee kindly requests that members of Congress address any further questions regarding the priority issues for this session to the members of the Committee during the discussion of this report at session.

Respectfully submitted,

/s/ Paliknoa K. Welly /s/ Dion G. Neth Paliknoa K. Welly, chairman Dion G. Neth, member

/s/ Derensio S. Konman /s/ Isaac V. Figir Derensio S. Konman, member Isaac V. Figir, member

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STANDING COMMITTEE REPORT NO. 20-13

RE: C.B. NO. 20-34/R&D

SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017

The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia First Special Session, 2017

Dear Mr. Speaker:

Your Committee on Resources and Development, to which was referred C.B. No. 20-34, entitled:

“A BILL FOR AN ACT TO ENACT A NEW CHAPTER 1 OF TITLE 36 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA (ANNOTATED), AND TO REPEAL THE EXISTING CHAPTER 1 IN ITS ENTIRETY, TO RENUMBER CHAPTER 2 OF TITLE 36 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA AS CHAPTER 3, FOR THE PURPOSE OF CREATING A NEW FSM NATIONAL CORPORATIONS LAW, AND FOR OTHER PURPOSES.”, begs leave to report as follows:

The intent and purpose of this bill are expressed in its title.

The subject bill was transmitted to Congress through Presidential Communication No. 20-20 on May 19, 2017, during the First Regular Session of the Twentieth Congress. C.B. No. 20-34 proposes several amendments to Title 36 of the FSM Code, which is the FSM Corporation Law. In transmitting this bill, the President has indicated that these amendments are proposed to make certain changes to the FSM Corporation Law to overhaul and modernize title 36 of the FSM Code.

According to P.C. No. 20-20, the Micronesian Registrar Advisors (MRA) as the FSM’s partner in promoting major corporations, has recommended the bill.

Title 36 of the FSM Code was enacted several years ago during the Government of the Trust Territory of the Pacific Islands and has not been updated.

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JULY 11, 2017

The bill also align the provisions of title 36 with contemporary practices of corporate law by addressing deficiencies in the current law, protection and reassurance to investors, accords proper rights and privileges to shareholders, and promotes safe and prudent corporate practice.

The bill also contains recommended measures raised in the peer review report by the Global Forum on the prevailing corporation law and regulation throughout the nation.

Proposed Amendments The amendments to Title 36 of the FSM Code are summarized below:

1. The intent of Section 1 of the bill is the deletion of chapter 1 of Title 36 in its entirety.

2. The intent of Section 2 of the bill is to create a new chapter 1 of Title 36 of the Code of the Federated States of Micronesia entitled: “Business Organization Act of 2016”.

3. Section 3 of the bill is the insertion of new section 101 of chapter 1 of Title 36, to read “Short Title. This chapter shall be known and may be cited as the Business Organization Act of 2016.

4. Section 102 of the bill proposes that corporation law applies to Major Corporation as defined by 54 F.S.M.C 312(2) and to corporations required to be formed under the National law of the Federated States of Micronesia. The regulations drafted and adopted by the Trust Territory Government do not address whether they have any application to corporation formed under State law. This proposed bill does not apply to corporation formed under State law.

5. Section 103 of the bill contains a comprehensive set of definitions. There are also specialized definition sections elsewhere in the proposed bill applicable to specific corporate issues.

6. The proposed amendments in section 104 contain a set of provisions relating to providing notice in a variety of situations. The intent of section 104 is designed to reduce or eliminate disputes as to the adequacy of notice. The current FSM corporation regulations have no comparable provisions.

7. The new section 105 clarifies that shareholders of a corporation may be individuals, but also may be corporations, partnerships, trustees, guardians, custodians or other fiduciaries of a single trust, estate or account. The existing regulations contain no comparable provisions.

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JULY 11, 2017

8. The proposed amendments in section 106 define the Registrar of Corporations’ position; granting the Registrar the power to adopt regulations, appoint Assistant Registrars including Assistant Registrars who may carry out their functions in FSM embassies abroad. This section supplements and overlaps to a certain extent 36 F.S.M.C 201, which creates the position of Registrar. Currently, there are no Assistant Registrars located in the embassies of the Federated States of Micronesia situated in foreign countries.

9. The proposed amendments in section 107 address the filing requirements of a document. A document must satisfy the requirements of this section to be entitled to filing with the Registrar. A document must be typewritten or printed, must be in English language; however, a corporate name need not be in English if written in Arabic or Roman numerals. The certificate of good standing required of foreign corporations need not be in English if accompanied by an English translation under oath of a translator. The filing of documents must be at the Office of Registrar. The document must be certified and executed by the appropriate authorities of the Corporation.

10. In the proposed new section 108, the Registrar may prescribe or furnish upon request forms for an application for good standing, a foreign corporation’s application for a certificate of authority to transact business in the FSM, a foreign corporation’s application for a certificate of withdrawal, and a form for annual reporting. If the Registrar so requires, the use of these forms are mandatory. The Registrar may also request other forms, which are not mandatory. This section sets a deadline of five business days for the issuance by the Registrar of certain documents including Certificates of Incorporation, Certificates of Good Standing, Certificates of Authority to transact business, and Certificates of Withdrawal. No similar detailed provision exists in the current regulations.

11. The proposed new section 109 sets out a schedule of filing fees regarding the various filings which corporations are required to do with the Office of the Registrar. The Registrar may adjust the fees assessed under this section through regulation adopted pursuant to section 106. All fees collected shall be deposited into the FSM Treasury. With the fees assessed under section 109, it is envisioned that FSM will generate potential revenues.

12. The new section 110 provides for the effective time and date of document. A document accepted for filing is effective at the time of filing on the date it is filed, as evidenced by the Registrar and time endorsement on the document. No similar provisions found in the existing regulations.

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13. The new section 111 provides for the correcting of errors in documents that have been filed with the Registrar. A domestic or foreign corporation may correct a document already filed with the Registrar by preparing articles of correction describing or specifying the incorrect information on such documents. Articles of correction are effective when filed. No similar provisions found in the existing regulation.

14. The new section 112 provides for the filing duty of the Registrar. The Registrar is required to immediately file documents, which appear on the face to satisfy the requirement of section 107. If the Registrar refuses to file a particular document, he must return it to the corporation with a statement of the reason for refusal. This section also clarifies that the Registrar’s refusal to file a particular documents does not affect the validity nor create a presumption of validity or invalidity. No provisions exist in the current regulations. 15. The proposed section 113 clarifies that the Registrar’s duty to file documents under section 112 is ministerial, and is subject to the appeal procedure. In the event the Registrar fails or refuses to file a particular document, a domestic or foreign corporation may appeal a refusal within thirty (30) days after the return of the documents in the Supreme Court of the Federated States of Micronesia. The court shall consider the appeal and render its final decision, which may be appealed as in other civil proceedings.

16. Section 114 provides for the evidentiary effect of filed document. A document filed by the Registrar bearing the Registrar’s signature, which may be in facsimile and contain the seal of the Registrar is conclusive evidence that the original document is on file with the Registrar.

17. Section 115 provides that it is a requirement that all certificates issued by the Registrar pursuant to this chapter and all copies of filed documents with the Registrar shall be taken and received in all courts, public offices and official bodies as prima facie evidence of the facts therein stated.

18. Section 116 of the proposed bill clarifies that one or more individuals may act as the incorporator or incorporators of a corporation by delivering articles of incorporation to the Registrar for filing. In the existing regulations, particularly subpart 2.1 of the FSM Corporate Regulations, “Any number of persons not less than three desiring to form a corporation shall execute articles of incorporation and acknowledge the same before any officer authorized to take acknowledgements.

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JULY 11, 2017

19. Proposed section 117 sets out the required information in the Articles of Incorporation. The required information are: the name of the corporation, the number of shares of stock the corporation is authorized to issue, the name of the registered agent and the address of the principal office and the name and address of each incorporator. This section also permits a variety of other types of information to be included in the Articles of Incorporation at the option of the incorporators. No notarization is required. No affidavit setting out of stock ownership is required. The current regulations have a detailed and specified set of information required in the Articles of Incorporation, which substantially exceeds that normally found in modern corporations law. The intent of Section 117 is to simplify the preparation of Articles of Incorporations.

20. Proposed section 118 provides that the corporate existence of a major corporation begins upon the delivery of properly prepared and executed Articles of Incorporation to the Registrar. As compared to the existing regulations, subpart 2.6 of the regulations provides that the corporate existence begins once the filing of articles and the affidavits are completed.

21. Proposed section 119 intends to penalize individuals who attempt to act on behalf of a corporation, which has not been formed by providing personal liability on the part of the individuals engaging in such transactions. The existing regulations contain no similar provisions.

22. Proposed section 120 provides for the initial organization of the corporation after the incorporation procedures are completed. It provides for the holding of organizational meetings by appointing officers, adoption of bylaws, and carrying on any other business brought before the meeting. An organization meeting may be held in or out of the Federated States of Micronesia. There is no similar provision in the existing regulations.

23. Proposed section 121 provides that incorporators or the Board of Directors may adopt initial bylaws not inconsistent with law or the Articles of Incorporation. This provision replaces an unnecessarily complicated provision in the existing regulations requiring shareholder action.

24. Section 122 allows for the adoption of emergency bylaws by the Board of Directors only during a catastrophe in the event the quorum of the board cannot be easily assembled. Emergency bylaws continue in effect during the emergency. No similar provision exists in the current regulations.

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SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017

25. Section 123 proposes a modern practice of corporation law, in which the purposes of the corporation are set out in the Articles of Incorporation. The intent of this section is to eliminate disputes and potential litigation as to particular acts of the corporation with respect to whether they fall within or outside the scope of the purpose clause for which the corporation was created. This proposed section 123 in no way detracts from the requirements of State or National foreign investment laws. Foreign Investment laws do require a foreign investment corporation to identify the purpose for which it is seeking a foreign investment permit, and the requirements of foreign investment laws remain intact.

26. This section 124 contains the corporate powers list of a corporation, and the intent is to eliminate the need for a corporation to define its powers in its Articles of Incorporation and bylaws. Similar to section 123, this eliminates disputes and potential future litigation over whether a particular act of a corporation falls within or outside of the scope of the powers of the corporation. The existing regulations require the powers to be defined.

27. Proposed section 125 sets out the emergency powers of the Board of Directors of a corporation, which may be exercised during a major catastrophe. This section compliments the emergency bylaw provision in section 122. The existing regulations are silent on this issue.

28. Proposed section 126 limits the circumstances under which corporate action may be challenged on the ground that the corporation lacked the power to act. Corporate action, which may be challenged, includes shareholder actions, derivative actions on behalf of the corporation, proceedings by the Secretary of the Department of Justice, and certain similar situations. No existing provisions in the current regulations.

29. Amendments to Sections 127 through 129. These sections set out detailed rules for the adoption and reservation of a corporate name, which are designed to avoid public confusion due to similarity of names of corporations and allow a corporation being formed to reserve a name for itself which other corporations cannot use. These sections expand upon similar requirements set out in existing regulations.

30. Proposed sections 130 through 132 set out the requirements for a designated corporation office and agent in the Federated State of Micronesia. For example, a major corporation is required to register its office as the same name in any of its places of business. Also each corporation needs to register its agent who may be an individual who resides in the Federated

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JULY 11, 2017

States of Micronesia. Further, these requirements include the step to be taken when there is a change of registered office or registered agent and the resignation of registered agent.

31. Proposed section 133 contains detailed provisions regarding the service of legal process on corporations. This section is similar to the existing regulation, but more detailed than provisions in the existing regulations.

SHAREHOLDERS AND SHARES 32. Sections 134 through 139 contain provisions relating to the issuance of stock by a corporation. These provisions are similar to the existing regulations, but more comprehensive than the provisions of the existing regulations.

33. Section 140 contains provisions limiting the liability of shareholders similar to the existing law.

34. Sections 141 and 142 contain provisions for the issuance of share dividends, example, dividends in the form of additional shares of stock issued to current shareholders, and also contains provisions regarding options to purchase shares of stock. The existing regulations contain no similar provisions.

35. Sections 143 through 148 contain provisions for the issuance of shares of stock and share certificates and the issuance of shares without certificates. Also included therein are provisions regarding restrictions on the transfer of shares, preemptive rights of existing shareholders and the acquisition by a corporation of its own shares. These provisions are much more comprehensive than the existing regulations and consistent with modern corporate practices.

36. Section 149 provides for the payment of dividends to shareholders and establishes the financial condition, which a corporation must have in order to declare dividends. Section 149 sets forth a much clearer criteria for the permitted issuance of dividends as compared to the existing regulations.

37. Sections 150 through 168 provide for annual and special meetings of shareholders, court ordered meetings, actions by shareholders without a meeting, notice requirements for meetings, as well as waiver of notice, the record date for notice to shareholders of a meeting, the preparation of shareholders lists of meetings, voting at meetings including voting by proxy, quorum requirements and requirements for voting groups, cumulative

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RE: C.B. NO. 20-34/R&D

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JULY 11, 2017 voting for directors and voting trusts and shareholder and voting agreements. These provisions are much more detailed and leave much less room for interpretation and potential disputes than existing regulations.

DERIVATIVE ACTIONS 38. Sections 169 through 176 set forth the requirements for derivative actions. Derivative actions are most commonly suits brought by minority shareholders to enforce a right of a corporation, which is not being enforced by the persons in control of the corporation. Derivative actions commonly include actions by minority shareholders on behalf of a corporation against majority shareholders or person or firms associated with majority shareholders to enforce rights, which a corporation might have against persons in control of the corporation or persons or firms associated with them. These may be debts owed by persons in control of the corporation on their associates, misuse of corporate assets by person in control, including other actions. The existing regulations contain no such provisions.

DIRECTORS AND BOARD OF DIRECTORS/OFFICERS 39. Sections 177 through 196 contain provisions governing directors and board of directors. Under the proposed legislation, a board consists of one or more directors similar to the existing corporate law. Provisions in these sections also cover the qualifications for selecting, removing, terms of office and vacancy on a board. These provisions also contain the requirements for both the removal of directors by shareholders and through a judicial proceeding and for the compensation of directors, board meeting procedures, action without a meeting, notice and waiver of notice of meetings, quorum requirements and voting, committees of the board of directors, standards of conduct for directors and shareholder approval of limitation of liability of directors. These provisions are much more comprehensive than the existing regulations.

40. Sections 197 through 201 govern corporate officers including the selection, duties, standards of conduct, resignation and removal and the contractual rights of a corporation and its officers, vis-à-vis each other in the event of a resignation or removal. Again, these provisions are more comprehensive than the existing regulations.

INDEMNIFICATION 41. Sections 202 through 211 contain provisions for permissible and mandatory indemnification of directors and officers in the event the directors or officers become

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RE: C.B. NO. 20-34/R&D

SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017 parties to a judicial or administrative or similar proceeding and also contain provisions regarding circumstances under which a corporation may not indemnify a director or officer. These provisions also provide for court ordered indemnification. These provisions typically come into play when a director or officer participates in an act of the corporation, which later becomes the subject matter of litigation or an administrative or similar proceeding. The existing regulations contain no such provisions.

CONFLICTING INTEREST TRANSACTIONS 42. Sections 212 through 215 govern director’s conflict of interest transaction, for instance transactions undertaken by a corporation with the participation of a director who has financial or other interest in the transaction. These provisions also cover required disclosures by directors in conflict of interest situations. The existing regulations contain no such provisions.

CONVERSION OF CORPORATIONS 43. Sections 216 through 218 make provision for the conversion of a Federated States of Micronesia corporation into a foreign corporation or vice versa. A plan of conversion and Articles of Conversion must be prepared and filed with the Registrar of Corporations. The debts, receivables and other assets of the converting entity become the debts, receivables and other assets of the converted entity following the completion of the process of conversion. A legal action by or against the converting entity becomes a legal action of the converted entity without requiring a substitution of the parties in the legal action. The converting entity is transformed into the new converted entity. The FSM corporation regulations contain no such provisions.

AMENDMENTS – ARTICLES – BYLAWS 44. Sections 219 through 227 cover the amendment of Articles of Incorporation. A corporation may amend its articles of incorporation at any time. A limited type of amendment can be made by the Board of Directors, like deletion of names and addresses of the initial directors and the names and addresses of the initial registered agent or registered office. The more fundamental amendments required action by both the board of directors and the shareholders. In the case of shareholder action, a majority vote of the outstanding shares would be required. Articles of amendment must be filed with the Registrar of Corporations. These provisions also define the circumstances under which outstanding shares of a particular class of stock are entitled to vote as a separate voting group. Provision is made also for Amended and Restated Articles of Incorporation

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JULY 11, 2017 approved by the board. Similar provisions exist under the FSM regulations except that under the proposed legislation, the Board of Directors is given greater discretion than under the FSM regulations.

45. Sections 228 through 230 provide for amendment of bylaws. The Board of Directors or the shareholders can generally amend the bylaws. The shareholders may limit the power of the board to make amendments. Shareholder action is required for bylaw changes, which increase the shareholder quorum or voting requirements. These provisions are similar to the existing FSM regulations, except that they place greater authority in the Board of Directors.

MERGERS/SHARE EXCHANGES/SALE OF ASSETS 46. Sections 231 through 239 provide procedure and requirements for corporate mergers and share exchanges. Mergers may involve the merger of two or more domestic corporations, one or more domestic corporation(s) with one or more foreign corporation(s) resulting in one becoming the surviving entity or creating an entirely new entity. A plan of merger must be established. If a foreign corporation is authorized to transact business in the FSM, is involved in the merger and is the surviving entity, the foreign corporation must file a duly authenticated Certificate of Merger with the Registrar. If the foreign entity is not the surviving entity, then the surviving entity must file the Certificate of Merger with the Registrar. These provisions also cover share exchanges whereby a corporation acquires all of the outstanding shares of one or more classes or series of stock of another corporation. Requirements for share exchanges include board and shareholder approval by both corporations. Mergers of subsidiary corporations into a parent corporation are also covered in these provisions. The plan of merger or share exchange must be filed with the Registrar. In the case of a merger, the surviving entity acquires both the assets and liabilities of the other party to the merger. These provisions would replace the existing merger provisions of the FSM regulations to simplify the process to be more consistent with modern corporate practice.

47. Sections 240 and 241 contain provisions regarding the sale of all or substantially all of the assets of a corporation in the ordinary course of business and the mortgaging and pledging of assets. Unless the Articles of Incorporation require it, board, but not the shareholder, approval is required. These provisions also cover the sale of all or substantially all of the corporate assets other than in the ordinary course of business, which requires both board and shareholder approval. These provisions would replace the

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JULY 11, 2017 existing provisions in the FSM regulations and making the process easier to accomplish and more in tune with modern corporate practice.

48. Sections 242 through 255 cover the right of shareholders to dissent and attain payment of the fair market value in exchange for their shares in certain merger and share exchange situations. These provisions also cover shareholders dissent in circumstances involving the sale of all or substantially all of the assets of a corporation other than in the ordinary course of doing business and the shareholder dissent in circumstances involving the amendment of Articles of Incorporation which materially and adversely affect the right of the dissenting shareholder and in certain other circumstances. To be entitled to payment for their shares, the dissenting shareholder generally must have been entitled to vote on the transaction opposed by the dissenting shareholder and voted against it. These provisions also include procedures in the event the dissenting shareholder is not satisfied with the proposed payment including the use of judicial proceedings. The existing regulations make provision for dissenting shareholders except they appear to limit the right of dissent and payment for shares to mergers opposed to by the dissenting shareholder.

DISSOLUTION 49. Sections 256 through 273 cover voluntary and involuntary dissolution of a corporation including dissolution by judicial action. Dissolution other than through judicial action process requires filing of Articles of Dissolution with the Registrar. Voluntary dissolution generally involves the approval by the board and shareholders except that incorporators or initial directors may dissolve a corporation, which has not yet commenced business. These provisions also allow for the revocation of dissolution and also the winding up of the affairs of the dissolved corporation. These provisions also allow dissolution by the Registrar and for reinstatement following administrative dissolution in appropriate cases. Judicial dissolution is also provided for in an action initiated by the Secretary of the Department of Justice or by a shareholder under certain circumstances such as irrevocable deadlock of a corporation. These provisions would replace somewhat similar provisions in the existing regulations, but are clearer and more consistent with modern corporate practice.

FOREIGN CORPORATIONS 50. Sections 274 through 288 contain provisions for foreign corporations, that is corporations formed in a jurisdiction other than the FSM or its States. These provisions

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STANDING COMMITTEE REPORT NO. 20-13

RE: C.B. NO. 20-34/R&D

SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017 provide for the requirement for foreign corporations to apply for and obtain a Certificate of Authority from the Registrar of Corporations to transact business in the FSM. In addition, the corporation must also comply with all State and National laws applicable to it including foreign investment laws. These provisions set out a certain few activities, which do not constitute transacting business in the FSM, soliciting orders for the sale of products, or owning personal or leasing real property similar to existing FSM regulations. Also these provisions set out the consequences in the event a foreign corporation fails to secure a Certificate of Authority. They also set out procedures for applying for and securing the Certificate. These procedures include completing an application to the Registrar and providing the Registrar a certificate of good standing from the jurisdiction under whose laws the corporation organized. Further requirement that a foreign corporation should comply with include, maintaining a registered office and a registered agent in the FSM, required service of process on foreign corporations, withdrawal of foreign corporations through the application to the Registrar for a Certificate of Withdrawal, required revocation of Certificate of Withdrawal. Finally, these sections set out the grounds for revocation and also provide a procedure whereby a revocation decision can be appealed to the FSM Supreme Court. These provisions would replace similar provisions in the existing FSM regulations, but are easier to use and more streamlined and consistent with current corporate practices unlike the existing FSM regulations. The filing of bond by the foreign corporation is not required in this proposed bill.

RECORDS 51. Section 289 requires corporations to keep records including minutes of board and shareholder meetings, financial records and records of shareholders and their shareholdings. The existing regulations contain no such provisions.

ANNUAL REPORTS 52. Sections 290 and 291 require corporations to file annual reports similar to the requirements in the existing FSM regulations and set out penalties for the failure to submit the annual report.

53. Section 292 contains a severability clause. Following section 292 is a new section, which renumbers and renames Sections 201 to 209 of Title 36 of the FSM Code. Sections 201 to 209 are renumbered 301 to 309.

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STANDING COMMITTEE REPORT NO. 20-13

RE: C.B. NO. 20-34/R&D

SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017

Your Committee recommends the following amendments to the bill as follows:

1. Page 6, line 12, delete “is”. 2. Page 6, line 13, delete “name”. 3. Page 22, line 15, after “and”, insert “contain”. 4. Page 184, line 21, delete “amendment”, and insert “amended” in lieu thereof. 5. Page 185, line 12, delete “statue”, and insert “statute” in lieu thereof. 6. Page 203, line 22, delete “Register”, and insert “Registrar” in lieu thereof. 7. Page 207, line 19, delete “he”, and insert “the” in lieu thereof. 8. Page 208, line 14, after “subsection”, insert “:” and delete “at the earliest of”. 9. Page 208, line 15, delete “of”. 10. Page 208, line 16, after “demand;”, insert “or”. 11. Page 208, line 25, delete “226”, and insert “239” in lieu thereof. 12. Page 209, line 1, delete “226”, and insert “239” in lieu thereof. 13. Page 213, line 12, delete “therefore”, and insert “thereon” in lieu thereof. 14. Page 218, line 3, after “of the”, insert “holder of the”. 15. Page 223, line 3, after “thirty”, insert “days”. 16. Page 223, line 6, delete “accompanies”, and insert “accompany” in lieu thereof. 17. Page 223, line 13, insert “who”, before “sent”. 18. Page 224, line 3, after “deposit”, insert “of”. 19. Page 224, line 4, delete “, each”. 20. Page 226, line 14, delete “2437’, and insert “247” in lieu thereof. 21. Page 226, line 21, insert “the” before “amount”. 22. Page 232, line 19, delete “247’, and insert “256” in lieu thereof. 23. Page 232, lin3 21, delete “247”, and insert “256” in lieu thereof. 24. Page 234, line 15, insert “in” before “subsections”. 25. Page 247, line 4, delete “247”, and insert “265” in lieu thereof. 26. Page 247, line 20, after “Finance”, insert “and Administration”. 27. Page 247, line 25, after “Finance”, insert “and Administration”. 28. Page 261, line 12, after “Finance”, insert “and Administration”. 29. Page 261, line 16, after “Finance”, insert “and Administration”. 30. Page 266, line 25, delete “attorney general”, and insert “Department of Justice” in lieu thereof. 31. Page 267, line 1, insert “to” after “due”. 32. Page 270, line 12, delete “271”, and insert “278” in lieu thereof.

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STANDING COMMITTEE REPORT NO. 20-13

RE: C.B. NO. 20-34/R&D

SUBJECT: AMENDMENTS TO TITLE 36 OF THE FSM CODE (CORPORATION LAW)

JULY 11, 2017

33. Page 271, line 2, delete “as”.

Conclusion

Your Committee on Resources and Development is in accord with the intent and purpose of C.B. 20-34 and recommends its passage on First reading and that it be placed on the calendar for Second and Final reading in the form attached hereto C.B. 20-34, C.D.1.

Respectfully submitted,

/s/ David W. Panuelo /s/ Tiwiter Aritos David W. Panuelo, chairman Tiwiter Aritos, vice chairman

/s/ Isaac V. Figir

Alik L. Alik, member Isaac V. Figir, member

/s/ Victor Gouland /s/ Derensio S. Konman Victor Gouland, member Derensio S. Konman, member

/s/ Esmond B. Moses Esmond B. Moses, member

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STANDING COMMITTEE REPORT NO. 20-14

RE: C.A. NO. 20-14 (P.C. NO. 20-47)/W&M

SUBJECT: VETO OVERRIDE OF C.A. NO. 20-14

JULY 11, 2017

The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia First Special Session, 2017

Dear Mr. Speaker:

Your Committee on Ways & Means, to which was referred Presidential Communication No. 20-47, regarding the veto of Congressional Act No. 20-14, entitled:

“AN ACT TO FURTHER AMEND TITLE 3 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA (ANNOTATED), AS AMENDED, BY INSERTING A NEW SECTION 305 TO CHAPTER 3 TO PLACE A STATUTORY LIMIT ON THE AMOUNT OF FUNDS THAT CONGRESS MAY APPROPRIATE TO MEMBERS’ REPRESENTATION FUNDS, AND FOR OTHER PURPOSES.”, begs leave to report as follows:

The intent and purpose of this act are expressed in its title.

Your Committee has reviewed Congressional Act No. 20-14 and the accompanying veto message (P.C. No. 20-47). Your Committee did not find any legal impediments or drafting errors in the Act. Your Committee has determined that the veto is purely based on policy. After substantial deliberation, your Committee has concluded that it disagrees with the policy behind the veto, and your Committee supports an override of the veto.

Your Committee notes that P.C. No. 20-47 cites the fact that the act applies specifically to the representation funds of members of Congress, and not also to the representation funds of the President and Vice President, as the first reason given for the President’s decision to veto the act. Your Committee wishes to state that the Executive is welcome to submit to Congress a separate bill to place a statutory limit on appropriations to the representation funds of the President and Vice President.

Your Committee would also like to note that, although the final paragraph of P.C. No. 20-47 expresses concern about certain members of Congress who may have spent more than $100,000 of representation funds in prior fiscal years, the intent of this act is not to penalize any particular members of Congress for past expenditures that were not

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STANDING COMMITTEE REPORT NO. 20-14

RE: C.A. NO. 20-14 (P.C. NO. 20-47)/W&M

SUBJECT: VETO OVERRIDE OF C.A. NO. 20-14

JULY 11, 2017 prohibited at the time they were made. C.A. No. 20-14 is meant, rather, to be forward- looking, and its intent is to set a statutory limit on a particular type of future appropriations by Congress.

CONCLUSION

Your Committee has reviewed the veto of Congressional Act No. 20-14 and the accompanying veto message. Your Committee finds that the decision made by the Executive was made based on policy and not on a violation of the law. Your Committee disagrees with this policy decision and recommends overriding the veto of Congressional Act No. 20-14.

Respectfully submitted,

/s/ Isaac V. Figir /s/ David W. Panuelo Isaac V. Figir, chairman David W. Panuelo, member

Victor V. Gouland Ferny S. Perman Victor V. Gouland, member Ferny S. Perman, member

/s/ Robson U. Romolow Joseph J. Urusemal Robson U. Romolow, member Joseph J. Urusemal, member

Paliknoa K. Welly Paliknoa K. Welly, member

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STANDING COMMITTEE REPORT NO. 20-15

RE: C.R. NO. 20-19/COMMITTEE ON CLIMATE CHANGE

SUBJECT: APPROVING $240,000 FROM THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

JULY 14, 2017

The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia First Special Session, 2017

Dear Mr. Speaker:

Your Committee on Climate Change, to which was referred C.R. No. 20-19 entitled:

“A RESOLUTION APPROVING AND ACCEPTING A U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT GRANT IN THE AMOUNT OF $240,000, TO FUND THE IMPLEMENTATION OF THE INSTITUATIONAL STENGTHENING IN PICS TO ADAPT TO CLIMATE CHANGE PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE.”, begs leave to report as follows:

The intent and purpose of this resolution are expressed in its title.

Your Committee held a public hearing on July 13, 2017. Present at the hearing were the Director of OEEM, Andrew Yatilman and Rose Nakanaga from the Department of Finance and Administration.

This is a grant from SPC to the FSM funded by funds from USAID. The Director testified that the grant was to help the FSM get accredited with the Green Climate Fund. In the FSM only the Micronesia Conservation Trust has received accreditation to apply for grants from the Green Climate Fund. The FSM Development Bank is also applying, but so far the National Government has not. It is important for the FSM to become accredited.

The grant will be used to hire someone at OEEM to work on the accreditation process. It is expected that this position will be paid about $20,000 per year. Your Committee raised concerns about the adequacy of such a salary for that particular role. The representative of Finance testified that they realize that, but any kind of financial assistance to the FSM should be welcomed, and we should protect our relationship with the donor. A number of Pacific Island countries have accepted similar grants.

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STANDING COMMITTEE REPORT NO. 20-15

RE: C.R. NO. 20-19/COMMITTEE ON CLIMATE CHANGE

SUBJECT: APPROVING $240,000 FROM THE U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

JULY 14, 2017

Your Committee agrees with that, but suggested that OEEM also look at its real needs and submit a budget to Congress. It the meantime, your Committee believes that the grant should be accepted to show the FSM’s efforts in getting the accreditation to the Green Climate Fund.

Your Committee on Climate Change is in accord with the intent and purpose of C.R. No. 20-19 and recommends its adoption in the form attached hereto.

Respectfully submitted,

/s/ Alik L. Alik /s/ Dion G. Neth Alik L. Alik, chairman Dion G. Neth, member

Wesley W. Simina Wesley W. Simina, member Isaac V. Figir, member

/s/ Derensio K. Konman Derensio S. Konman, member

205

STANDING COMMITTEE REPORT NO. 20-16

RE: P.C. NO. 20-39/T&C

SUBJECT: VETO OF CONGRESSIONAL ACT 20-16

JULY 14, 2017

The Honorable Wesley W. Simina Speaker, Twentieth Congress Federated States of Micronesia First Special Session, 2017

Dear Mr. Speaker: Your Committee on Transportation and Communication, to which was referred Presidential Communication 20-39 regarding the veto of Congressional Act 20-16, entitled AN ACT TO AMEND SECTION 389 AND 391, AND INSERT A NEW SECTION 392, UNDER CHAPTER 3 OF TITLE 21 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA (ANNOTATED) AS AMENDED, PERTAINING TO ASSETS AND LIABILITIES OF THE OPEN ACCESS ENTITY ,AND FOR OTHER PURPOSES.”, begs leave to report as follows:

Your Committee did not find any legal impediments or drafting errors in the Act. Your Committee has determined that the veto is purely based on policy decision. The purpose of the Act was to require the Open Access Entity to provide connectivity free of charge to FSM Telecom. Congress remains committed to that policy. The Presidential Communication did not provide any arguments as to why this is not a sound policy or why it is not in the best interest of the Nation.

CONCLUSION

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STANDING COMMITTEE REPORT NO. 20-16

RE: P.C. NO. 20-39/T&C

SUBJECT: VETO OF CONGRESSIONAL ACT 20-16

JULY 14, 2017

Your Committee has reviewed the veto of Congressional Act 20-16 and the veto message. Your Committee finds that the decision made by the Executive was made based on policy and not on a violation of the law. Your Committee disagrees with this policy decision and recommends overriding the veto of Congressional Act No. 20-16. Respectfully submitted,

/s/ Victor V. Gouland /s/ Alik L. Alik Victor V. Gouland, chairman Alik L. Alik, vice chairman

/s/ Ferny S. Perman

Florencio S. Harper, member Ferny S. Perman, member

/s/ Dion G. Neth /s/ Wesley W. Simina Dion G. Neth, member Wesley W. Simina, member

/s/ Joseph J. Urusemal Joseph J. Urusemal, member

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Presidential Communications

208

PRESIDENTIAL COMMUNICATIONS

-No. 20-36 – (Dated 05/29/17 & received 05/30/17) – Designating Congressional Act No. 20-09 as Public Law No. 20-11: “To further amend Public Law No. . 18- 11, as amended by Public Laws Nos.18-44, 18-81, 19-33, 19-106, 19-134 and 19-138,by amending sections 1 and 2 thereof, to change the use and allottee of funds previously appropriated for public projects and social programs in the state of Pohnpei, and for other purposes.”

-No. 20--37 - (Dated & received May 30, 2017) - Designating Congressional Act No. 20-11 as Public Law No. 20-12: “To further amend Public Law No. 16-58, as amended by Public Laws Nos. 16-64, 16-72, 17- 08, 17-11, 17-20, 17-35, 17-41, 18-77 and 19-38, by amending section 5 thereof, to change the use of certain funds previously appropriated, to fund public projects and social programs in the state of Chuuk, and for other purposes.

-No. 20-38 – (Dated & received 06/01/17) – Designating Congressional Act No. 20-17 as Public Law No. 20-13: “To further amend section 203 of title 21 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Law 18-52, to require Telecommunications Corporation of the Federated States of Micronesia to provide services and system access on the Handrui cable system to the open access entity free of change, and for other purposes.

-No. 20-39 –(Dated & received 06/01/17) - Vetoing Congressional Act No. 20-16: “To amend section 389 under chapter 3 of title 21 of the Code of the Federated States of Micronesia (Annotated), pertaining to assets and liabilities of the Open Access Entity, and for other purposes.”

-No. 20-40 – (Dated & received 06/06/17) – Transmitting a Bill that regulates seabed mining (DSM).

-No. 20-41 – (Dated & received 06/16/17) – Designating, with reservations, Congressional Act No. 20-12 as Public Law No. 20-14: “To amend sections 1, 2, 3, 4, 5, 6, 8 and 9 of Public Law No. 19-118, as amended by Public Laws Nos. 19-125, 19-131, 19-135, 19-146, 19-160, and 20-01, in order to appropriate $797,065 of additional funds from the General

Fund of the Federated States of Micronesia for the fiscal year ending September 30, 2017, to change the use of certain funds, to correct for a technical error, and for other purposes.”

-No. 20-42 – (Dated & received 06/16/17) – Designating Congressional Act No. 20-18 as Public Law No. 20-15: “To further amend Public Law No. 19-124, as amend by Public Laws Nos. 19-133, 19-140, 19-150 and 20-05, by amending section 4, 5 and 6 thereof, to correct technical errors

209

PRESIDENTIAL COMMUNICATIONS

and ommissions by changing the use and lapse date of some funds previously appropriated therein, to fund priority infrastructure projects and other programs in the states of Pohnpei and Chuuk, and for other purposes.”

-No. 20-43 –(Dated & received 06/19/17) – Designating Congressional Act No. 20-20 as Public Law No. 20-16: “To further amend Public Law No. 18-70, as previously amended by Public Laws Nos. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19-139 and 20-07, by amending section 5 thereof, to change the use of certain funds previously appropriated therein, for the purpose of funding public projects and social programs for the people of Chuuk State, and for other purposes.”

-No. 20-44 -(Dated & received 06/19/17) – Vetoing Congressional Act No. 20-15: “To further amend title 2 of the Code of the Federated States of Micronesia (Annotated), as amended by Public Laws Nos. 18-33, 19-29 and 19-63, by amending sections 203 and 204 thereof, to dissolve the Office of Environment and Emergency Management and properly placed it as one of the Departments of the Federated States of Micronesia National Government, and for other purposes.”

-No. 20-45 –(Dated & received 06/23/17) - Designating Congressional Act No. 20-19 as Public Law No. 20-17: “To further amend Public Law No. 17-36, as amended by Public Laws Nos. 17-48, 17-78, 17-87, 18-36, 18- 60, 18-65, 18-84, 19-22 and 19-109, by amending section 5 and 6 therein, to change the use and

lapse date of certain funds previously appropriated therein to fund public projects and social programs in the State of Chuuk, and for other purposes.”

-No. 20-46 –(Dated & received 06/23/2017:- Designating Congressional Act No. 20-13 as Public Law No. 20-18: “To further amend Public Law No. 18-99, as amended by Public Laws Nos. 18-106, 18-113, 18-121, 19- 05, 19-34, 19-57, 19-74 and 19-107, by amending sections 3, 4, 5 and 6 thereof, to change the use and allottee of funds previously appropriated therein to fund public projects and social programs for the people of the states of Kosrae, Pohnpei and Chuuk, and for other purposes.”

210

Presidential Communications (continued – 1SS- 20FSMC- pg. 3)

-No. 20-47 –(Dated & received 06/23/17) – vetoing Congressional No. 20- 14: “To further amend title 3 of the Code of the Federated States of Micronesia (Annotated), as amended, by inserting a new section 305 to chapter 3 to place a statutory limit on the amount of funds that Congress may appropriate to members’ representation funds, and for other purposes.”

-No. 20-48– (Dated 07/05/17and received 07/06/17) – Transmitting for review and action of Congress a proposed resolution approving a grant assistance made available by the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Administration in the amount of $250,000 to fund the FSM Department of Health and Social Affairs Opioid State Targeted Response Project managed by the FSM Department of Health and Social Affairs, Substance Abuse and Mental Health Program.

-No. 20-49– (Dated 07/05/17and received 07/07/17) – Transmitting for review and action of Congress a bill to amend title 2 of the FSM Code in order to upgrade the Office of the Environment and Emergency Management (OEEM) by dissolving it and creating a new department to be vested with the duties and responsibilities, including climate change, held by the OEEM.

-No. 20-50- (Dated 07/06/17 & received 07/07/17) – Transmitting a bill to lift the reprogramming restriction under the fiscal year 2017 annual budget, to accommodate the Office of Public Defender.

-No. 20-51- (Dated 07/06/17 & received 07/07/17) – Transmitting a resolution for the acceptance of a foreign assistance in the amount of $240,000 from the U.S. Agency for International Development (USAID) to support the project titled: “Institutional Strengthening in PICs to Adapt to Climate Change”, which will be implemented through the Secretariat of the Pacific Community (SPC).

-No. 20-52 – (Dated & received 07/10/17) – Proposing further changes to the personnel budget mainly to reclassify some of the positions in treasury, Investment and CTA that were not previously reflected in the initial proposed budget.

-No. 20-53 – (Dated & received 07/11/17) – Submitting the supplemental budget request, a total of $6.3 million of which $368,000 is in operations budget, $430,000 to grants, subsidies, contributions budget, and $5.5 million in CIP- budget for fiscal year 2017.

-No. 20-54 – (Dated & received 07/11/17) – Transmitting a proposed bill to amend Section 404 of Title 24 of the FSM Code, to provide NORMA the discretion to exempt certain Long Line and Pole and Line fishing vessels from the prohibition of fishing on neighboring high seas areas.

211

Preseidential Communications (continued 1SS- 20FSMC- pg. 4)

-No. 20-55 – (Dated & received 07/11/17) – Transmitting a Resolution approving and accepting a grant in the amount of 21,270,000 (yen) from the Government of Japan, to fund the Goods and Services Program for the fiscal year 2018 to assist fisheries development program of the State of Pohnpei.

-No. 20-56 – (Dated 07/12/13 & received 07/13/17) -Transmitted a bill to amend the appropriation of $500,000 for the open access entity.

-No. 20-57 – (Dated 07/11/17 & received 07/13/17) – Transmitted a resolution accepting the financial grants to the Federated States of Micronesia in the combined amount of $8,300,000 from the Asian Development Bank to fund the project called Improving the Quality of Basic Education.

-No. 20-58 – (Dated & received 07/13/17) – Transmitted a resolution confirming the appointment of Secretary Sihna Lawrence to represent the FSM Government in the Joint Trust Fund Committee.

-No. 20-59 – (Dated & received 07/13/17) – Transmitted for action a resolution approving a grant assistance made available by the U.S. Department of Health & Human Services, Centers for Disease Control and Prevention in the amount of $417,164 to fund the FSM Public Health and Healthcare Emergency Preparedness Project managed by the FSM Department of H&SA.

-No. 20-60 – (Dated 07/13/13 & received 07/14/17) -Transmitted a resolution nominating Mrs. Pelma Johnson Mingii to serve as a member on the Board of Regents of the College of Micronesia- FSM representing the National Government.

-No. 20-61 – (Dated 07/13/17 & received 07/14/17) – Transmitted a resolution to convey FSM’s appreciation to the G20 Leaders for their steadfast stance and support for the Paris Agreement during their July 7-8, 2017 Summit in Hamburg, Germany.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

FSM SUPREME COURT COMMUNICATIONS

213

FSM SUPREME COURT COMMUNICATIONS

-No. 20-02 – (Dated & received 06/05/17) – From the Hon. Dennis K. Yamase, Chief Justice, FSM Supreme Court, Informing that pursuant to the Judiciary Act of 1979, he has designated the Hon. Camillo Noket, Chief Justice of the Chuuk State Supreme Court to serve a a temporary justice of the Supreme Court of the Federated States of Micronesia in Appeal Case No. P1-2013.

214

20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Members Communications

215

MEMBERS COMMUNICATIONS

-No. 20-03 - (Dated & received 07/04/17) – From the Hon. Esmond B. Moses, Vice Speaker of the 20th FSM Congress and Head of the Congress delegation to the bilateral meeting between the United States Department of Interior and the FSM Government in Honolulu, regarding the suspension of the infrastructure sector grants for the FSM Government.

--No. 20-04 - (Dated & received 07/06/17) – From the Hon. Ferny S. Perman, Chairman, Committee on Health & Social Affairs, attaching a memorandum on health related issues and indicators in the form of comparable data for the years 2012 through 2016 for the FSM States, from Mrs. Magdalena A. Walter, Secretary, Department of Health & Social Affairs.

-No. 20-05- (Dated 07/11/17 and received 07/12/17) – From the Hon. Esmond B. Moses, Vice Speaker of the 20th FSM Congress, sharing for information a letter from Mr. Kasio E. Mida, Senior Headquarters Executive, MRA, Inc., on C.B. No. 20-34 regarding the creation of a new FSM National Corporations Law.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

DEPARTMENTAL COMMUNICATIONS

-- 217

DEPARTMENTAL COMMUNICATIONS

-No. 20-05 – (Dated 06/02/16 & received 0705/15) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, reporting on the organizational activities of the JCRP so far.

-No. 20-06 -(Dated 06/02/15 & received 06/05/17) – From Mrs. Sihna N. Lawrence, Secretary of Finance & Administration, submitting for information a copy of FSM’s unaudited performance for the quarter ended March 31, 2017.

-No. 20-07 – (Dated 06/05/17 & received 06/08/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, sharing the attached Diplomatic Note No. FIL-00548 from the Embassy of Mexico in Manila, informing that the Inter-Parliamentary Union will elect its President in the General Assembly to be held in St. Petersburg (Russian Federation) from October 14-18, 2017 and thus submitting the candidature of Ms. Gabriela Cuevas Barron of Mexico for the Presidency of the IPU.

-No. 20-08 – (Dated 06/09/17 & received 06/12/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, attaching a Diplomatic Note No. 17-0112 from the U.S. Embassy in Kolonia, with a letter from Mr. Nikolo Pula, acting Assistant Secretary of Insular Affairs, confirming the date of the bilateral meeting between the United States Departmen of Interior and the FSM Government in Honolulu.

-No. 20-09 –(Dated 06/27/17 & received 06/28/17) – From Mr. Samson Pretrick, Deputy Secretary, Department of Foreign Affairs, transmitting a Note Verbale from the Embassy of the Russian Federation, informing of the 137th Assembly of the IPU to be held from October 14 to 18, 2017 in St. Petersburg, Russia.

-No. 20-11 – (Dated & received 07/10/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, advising that the Hon. Leon Malazogu, Ambassador of the Republic of Kosovo the FSM, will be in Pohnpei from August 7 to 10, 2017 to his letter of credence, scheduled for August 7, 2017.

-No. 20-12 – (Dated & received 07/05/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, sharing a copy of the Diplomatic Note No. 17-0137 from the U.S. Embassy, with an enclosed letter from Mr. Nikolao Pula, Acting Assistant Secretary of Insular Affairs, concerning the lifting of the suspension of public infrastructure grant assistance to the Government of the Federated States of Micronesia; and a copy of the Joint Statement signed by Vice President Yosiwo P. George and Mr. Pula.

218

Departmental Communications (continued—1SS- 20FSMC-- pg. 2)

-No. 20-13 – (Dated 07/11/17 & received 07/13/17) – From the Hon. Lorin S. Robert, Secretary, Department of Foreign Affairs, presenting compliments and sharing a Note Verbale from the General Secretariat of the Council of the European Union in Brussels informing that, in accordance to Article 8.1 of the Agreement between the Federated States of Micronesia and the European Union on the short-stay visa waiver, both parties have completed their internal ratification procedures necessary for the entry into force of the Agreement.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Agency and Govermenal Authority Communications

220

Agency and Govermenal Authority Communications

-No. 20-03 – (Dated 05/30/17) – From Ms. Arlynne Chugen, submitting a report on the status of the MiCare, covering the period of October 01, 2015 to September 30, 2016.

-No. 20-04 – (Dated 05/30, 2017 & received 05/31/17) – From Ms. Anna Mendiola, President/CEO, FSM Development Bank, submitting the annual report of the Bank for the year ended December 31, 2016.

-No. 20-05 –(Dated 06/05/17 & received 06/06/17), From Mr.Kasio E. Mida, Senior Headquarters Executive, Micronesian Registration Advisors, Inc., offered congratulations and informing of the upcoming MRA seminars in Tokyo in October of 2017.

-No. 20-06 – (Dated 06/02/17 & received 06/06/17) – From Mr. Joseph M. Daisy, President & CEO, COM-FSM, sharing the results of the completed quadrennial comprehensive review of the President of the College by the Board of Regents.

-No. 20-07 – (Dated 06/12/17 & received 06/13/17) – From Mr. Eugene Pangelinan, Director of NORMA, informing of the Authority’s bilateral consultation with the fishing companies and associations, starting with meetings with the Japanese Association and the domestic fleet including Diving Seagull in Yap from 21 to 27 June 2017.

-No. 20-08 – (Dated 06/13/17 & received 06/16/17)- From the Hon. Asher Hainrick, FSM Public Auditor, submitting an audit report on the Yap Visitors Bureau for FY 2016 & 2015.

-No. 20-09- (Dated 06/20/17 & received 06/21/17) – From Mr. Nakama Sana, Banking Commissioner, FSM Banking Board, submitting a quarterly report on the consolidated financial statements of Bank of Guam and Bank of the FSM for the quarter ended March 31, 2017.

-No. 20-10 – (Dated 06/20/17 & received 06/29/17) – From Mr. Alexander R. Narruhn, Chairman, Banking Board, submitting the 2016 Annual Report, covering the performance of the insurance system and activities of the Board.

-No. 20-11 – (Dated 06/30/17 & received 07/03/17) – From Mr. Joseph M. Daisy, President & CEO, and Mr. Tulensru Waguk, Chairman if the Board of Regents, informing that the COM-FSM will commemorate its 25th anniversary during the first week of

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April 2018, and extending an invitation to members of Congress to join in the commemorative celebration.

-No. 20-12 – (Dated 06/20/17 & received 07/06/17) – From Mr. Andrew R. Yatilman of the Office of Environment & Emergency Management, submitting a copy of the FSM National Disaster Response Plan (FSM-NRDP) 2016 for reference.

-No. 20-13 – (Dated 07/05/17 & received 07/07/17) – From Mr. Eugene Pangelinan, Executive Director, NORMA, submitting a report on the outcome of the recent bilateral fisheries access consultations with Japan, held in Colonia, Yap, from June 25-27, 2017.

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FIRST SPECIAL SESSION

State Communications

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STATE COMMUNICATIONS

-No. 20-04 -(Dated 06/28/17 & received 07/05/17) – From Mrs. Florence P. Stanley, Chief Clerk, Chuuk State House ofRepresentatives, transmitting a copy of a joint resolution, which was adopted by both Houses of the 14th Chuuk State Legislature during its regular session: “To express sincere gratitude and appreciation of the Chuuk State Legislature to the United Nations Pacific Office and to the Australia Government for supporting the Chuuk State Legislature seminar and the joint United Nations High Level follow up visit to the Chuuk State, and for other purposes.”

-No. 20-05 - (Dated & received 07/12/17) – From the Hon. Tulensa W. Palik, Speaker, 11th Kosrae State Legislature, conveying full support of the $1 million supplemental request for FSM housing programs across the states.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

STATE SUPREME COURT COMMUNICATIONS

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STATE SUPREME COURT COMMUNICATIOINS

NONE

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Municipal or Town Communications

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MUNICIPAL OR TOWN COMMUNICATIONS

-No. 20-01 -(Dated 05/36/17 & received 07/05/17) – From Mr. Jose San Nicholas, Mayor, Kolonia Town Government, writing regarding the recent rejection of public projects earmarked last year for Kolonia Town Government.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Foreign Government Communications

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FOREIGN GOVERNMENT COMMUNICATIONS

-No. 20-03 - (Dated 05/30/17 & received 05/37/15) – From Secretary General Muhammas Reza Majidi, Asian Parliamentary Assembly, requesting a the designation of a focal person and e-mail to ensure that all communications for certain meetings under this organization are received and accounted for for members of Congress attending those meetings well before their participation at such meetings.

-No. 20-04 – (Dated 05/30/17 & received 06/01/17) – From Mr. Martin Chungong, Secretary General, IPU, sending an invitation to the “Thirteenth Workshop of Parliamentary Scholars and Parliamentarians” to be held Wroxton College, Oxfordshire (United Kingdom) on 29-30 July 2017.

-No. 20-05 – (Dated 05/11/17 & received 06/05/17) - From Mr. Martin Chungong, Secretary General, IPU, submitting an outcome document, which the meeting of Young Parliaments meeting on April 25 and 26, 2017 adopted.

-No. 20-06 – (Dated 06//07/17 & received 07/09/17) - From Mr. Martin Chungong, Secretary General, IPU, sharing the outcome document of a Regional Seminar on Achieving the Sustainable Goals for the Parliaments of Asia Pacific, which took place in Ho Chi Minh City, Viet Nam.

-No. 20-07 – (Dated 06/08/17 & received 06/09/17) – From Mr. Martin Chungong, Secretary General, IPU, inviting Congress to participate at this years’ United Nations High Level Political Forum on sustainable development from 17 to 19 July 2017.

-No. 20-08 – (Dated 06/14/17 & received 07/05, 2017) – From Mr. Martin Chungong, Secretary General, IPU, and the Hon. Saber Chowdhury, President, IPU, enclosing detailed information on the 137th IPU Assembly and related meetings, which will be held at the Tavrichesky Palace and the Parliamentary Centre in St. Petersburg (Russian Federation) from 14-18 October 2017.

-No. 20-09 – (Dated 07/05/17 & received 07/06/17) – From the Hon. Norihisa Tamura, President, Japanese Parliamentarian League for the World Health Organization, National Diet of Japan, inviting Speaker to attend the Third Meeting of the Asia-Pacific Parliamentarian Forum on Global Health.

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-No. 20-10 – (Dated 07/05/17 & received 07/11/17) – From the Clerk of the Australian House of Representatives, Australian Parliament, inviting Vice Speaker to attend an Inter-Parliamentary Study Program from 23-28 November 2017.

-No. 20-11 – (Dated 05/08/17 & Received 07/13/17) – From the Hon. Shirin Sharmin Chaudhury, President of the 136th Assembly of the IPU; and Mr. Martin Chungong, Secretary General, IPU, sending the publication of the Results of the 136t Assembly and related meetings of the IPU, held in Dhaka, Bangladesh, from 1 to 5 April 2017.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Miscellaneous Communications

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MISCELLANEOUS COMMUNICATIONS

-No. 20-02 – (Not dated & received 06/16/17) – From the four conservation societies of the FSM States, expressing gratitude for previous funding and requesting funding support in the amount of $200,000 to the four conservation societies.

-No. 20-03 – (Dated 06/22/17) – From Mr. Rodney M. Edmond, President, Utwe Congregational Church, informing Speaker of an upcoming visit by the members of the group from Utwe Congregational Church, who will be here in Pohnpei to hold Christian fellowships with the Kosraean community in Pohnpei, and also requesting for a visit to the Congress on July 26, 2017 at 11:30 a.m.

-No. 20-04 – (Dated 04/17/17 & received 07/05/17) – From Mrs. Nasako M. Weires-Madsen, a FSM citizen residing in the United States, expressing concerns on the issue of citizens, who have registered to vote, but never received their ballots, to exercise their constitutional rights to vote especially on the Constitutional Amendment on Dual Citizenship.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

Presidential Veto

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Presidential Veto

NONE

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20th CONGRESS of the Federated States of Micronesia

FIRST SPEICAL SESSION

Congressional Override

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Congressional Override

NONE

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

FSM CONSTITUTION

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CONSTITUTION OF THE FEDERATED STATES OF MICRONESIA

PREAMBLE

WE, THE PEOPLE OF MICRONESIA, exercising our inherent sovereignty, do hereby establish this Constitution of the Federated States of Micronesia.

With this Constitution, we affirm our common wish to live together in peace and harmony, to preserve the heritage of the past, and to protect the promise of the future.

To make one nation of many islands, we respect the diversity of our cultures. Our differences enrich us. The seas bring us together, they do not separate us. Our islands sustain us, our island nation enlarges us and makes us stronger.

Our ancestors, who made their homes on these islands, displaced no other people. We, who remain, wish no other home than this. Having known war, we hope for peace. Having been divided, we wish unity. Having been ruled, we seek freedom.

Micronesia began in the days when man explored seas in rafts and canoes. The Micronesian nation is born in an age when men voyage among stars; our world itself is an island. We extend to all nations what we seek from each: peace, friendship, cooperation, and love in our common humanity. With this Constitution we, who have been the wards of other nations, become the proud guardian of our own islands, now and forever.

ARTICLE I Territory of Micronesia

Section 1. The territory of the Federated States of Micronesia is comprised of the Districts of the Micronesian archipelago that ratify this Constitution. Unless limited by international treaty obligations assumed by the Federated States of Micronesia, or by its own act, the waters connecting the islands of the archipelago are internal waters regardless of dimensions, and jurisdiction extends to a marine space of 200 miles measured outward from appropriate baselines, the seabed, subsoil, water column, insular or continental shelves, airspace over land and water, and any other territory or waters belonging to Micronesia by historic right, custom, or legal title.

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Section 2. Each state is comprised of the islands of each District as defined by laws in effect immediately prior to the effective date of this Constitution. A marine boundary between adjacent states is determined by law, applying the principle of equidistance. State boundaries may be changed by Congress with the consent of the state legislatures involved.

Section 3. Territory may be added to the Federated States of Micronesia upon approval of Congress, and by vote of the inhabitants of the area, if any, and by vote of the people of the Federated States of Micronesia. If the territory is to become part of an existing state, approval of the state legislature is required.

Section 4. New states may be formed and admitted by law, subject to the same rights, duties, and obligations as provided for in this Constitution.

ARTICLE II Supremacy

Section 1. This Constitution is the expression of the sovereignty of the people and is the supreme law of the Federated States of Micronesia. An act of the Government in conflict with this Constitution is invalid to the extent of conflict.

ARTICLE III Citizenship

Section 1. A person who is a citizen of the Trust Territory immediately prior to the effective date of this Constitution and a domiciliary of a District ratifying this Constitution is a citizen and national of the Federated States of Micronesia.

Section 2. A person born of parents one or both of whom are citizens of the Federated States of Micronesia is a citizen and national of the Federated States by birth.

Section 3. A citizen of the Federated States of Micronesia who is recognized as a citizen of another nation shall, within 3 years of his 18th birthday, or within 3 years of the effective date of this Constitution, whichever is later, register his intent to remain a citizen of the Federated States and renounce his citizenship of another nation. If he fails to comply with this Section, he becomes a national of the Federated States of Micronesia.

Section 4. A citizen of the Trust Territory who becomes a national of the United States of America under the terms of the Covenant to Establish a Commonwealth of the Northern Mariana Islands may become a citizen and national of the Federated States of

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Micronesia by applying to a court of competent jurisdiction in the Federated States within 6 months of the date he became a United States national.

Section 5. A domiciliary of a District not ratifying this Constitution who was a citizen of the Trust Territory immediately prior to the effective date of this Constitution, may become a citizen and national of the Federated States of Micronesia by applying to a court of competent jurisdiction in the Federated States within 6 months after the effective date of this Constitution or within 6 months after his 18th birthday, whichever is later.

Section 6. This Article may be applied retroactively.

ARTICLE IV Declaration of Rights

Section 1. No law may deny or impair freedom of expression, peaceable assembly, association, or petition.

Section 2. No law may be passed respecting an establishment of religion or impairing the free exercise of religion, except that assistance may be provided to parochial schools for non-religious purposes.

Section 3. A person may not be deprived of life, liberty, or property without due process of law, or be denied the equal protection of the laws.

Section 4. Equal protection of the laws may not be denied or impaired on account of sex, race, ancestry, national origin, language, or social status.

Section 5. The right of the people to be secure in their persons, houses, papers, and other possessions against unreasonable search, seizure, or invasion of privacy may not be violated. A warrant may not issue except on probable cause, supported by affidavit particularly describing the place to be searched and the persons or things to be seized.

Section 6. The defendant in a criminal case has a right to a speedy public trial, to be informed of the nature of the accusation, to have counsel for his defense, to be confronted with the witnesses against him, and to compel attendance of witnesses in his behalf.

Section 7. A person may not be compelled to give evidence that may be used against him in a criminal case, or be twice put in jeopardy for the same offense.

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Section 8. Excessive bail may not be required, excessive fines imposed, or cruel and unusual punishments inflicted. The writ of habeas corpus may not be suspended unless required for public safety in cases of rebellion or invasion.

Section 9. Capital punishment is prohibited.

Section 10. Slavery and involuntary servitude are prohibited except to punish crime.

Section 11. A bill of attainder or ex post facto law may not be passed.

Section 12. A citizen of the Federated States of Micronesia may travel and migrate within the Federated States.

Section 13. Imprisonment for debt is prohibited.

ARTICLE V Traditional Rights

Section 1. Nothing in this Constitution takes away a role or function of a traditional leader as recognized by custom and tradition, or prevents a traditional leader from being recognized, honored, and given formal or functional roles at any level of government as may be prescribed by this Constitution or by statute.

Section 2. The traditions of the people of the Federated States of Micronesia may be protected by statute. If challenged as violative of Article IV, protection of Micronesian tradition shall be considered a compelling social purpose warranting such governmental action.

Section 3. The Congress may establish, when needed, a Chamber of Chiefs consisting of traditional leaders from each state having such leaders, and of elected representatives from states having no traditional leaders. The constitution of a state having traditional leaders may provide for an active, functional role for them.

ARTICLE VI Suffrage

Section 1. A citizen 18 years of age may vote in national elections. The Congress shall prescribe a minimum period of local residence and provide for voter registration, disqualification for conviction of crime, and disqualification for mental incompetence or insanity. Voting shall be secret.

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CONSTITUTION OF FEDERATED STATES OF MICRONESIA (continued p.

ARTICLE VII Levels of Government

Section 1. The three levels of government in the Federated States of Micronesia are national, state, and local. A state is not required to establish a new local government where none exists on the effective date of this Constitution.

Section 2. A state shall have a democratic constitution.

ARTICLE VIII Powers of Government

Section 1. A power expressly delegated to the national government, or a power of such an indisputably national character as to be beyond the power of a state to control, is a national power.

Section 2. A power not expressly delegated to the national government or prohibited to the states is a state power.

Section 3. State and local governments are prohibited from imposing taxes which restrict interstate commerce.

ARTICLE IX Legislative

Section 1. The legislative power of the national government is vested in the Congress of the Federated States of Micronesia.

Section 2. The following powers are expressly delegated to Congress:

(a) to provide for the national defense;

(b) to ratify treaties;

(d) to impose taxes, duties, and tariffs based on imports;

(e) to impose taxes on income;

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(f) to issue and regulate currency;

(g) to regulate banking, foreign and interstate commerce, insurance, the issuance and use of commercial paper and securities, bankruptcy and insolvency, and patents and copyrights;

(h) to regulate navigation and shipping except within lagoons, lakes, and rivers;

(i) to establish usury limits on major loans;

(j) to provide for a national postal system;

(k) to acquire and govern new territory;

(l) to govern the area set aside as the national capital;

(m) to regulate the ownership, exploration, and exploitation of natural resources within the marine space of the Federated States of Micronesia beyond 12 miles from island baselines;

(n) to establish and regulate a national public service system;

(o) to impeach and remove the President, Vice-President, and justices of the Supreme Court;

(p) to define national crimes and prescribe penalties, having due regard for local custom and tradition;

(q) to override a Presidential veto by not less than a 3/4 vote of all the state delegations, each delegation casting one vote; and

(r) to promote education and health by setting minimum standards, coordinating state activities relating to foreign assistance, providing training and assistance to the states and providing support for post-secondary educational programs and projects.

Section 3. The following powers may be exercised concurrently by Congress and the states:

(a) to appropriate public funds;

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(b) to borrow money on the public credit; and

Section 4. A treaty is ratified by vote of 2/3 of the members of Congress, except that a treaty delegating major powers of government of the Federated States of Micronesia to another government shall also require majority approval by the legislatures of 2/3 of the states.

Section 5. National taxes shall be imposed uniformly. Not less than 50% of the revenues shall be paid into the treasury of the state where collected.

Section 6. Net revenue derived from ocean floor mineral resources exploited under Section 2(m) shall be divided equally between the national government and the appropriate state government.

Section 7. The President, Vice-President, or a justice of the Supreme Court may be removed from office for treason, bribery, or conduct involving corruption in office by a 2/3 vote of the members of Congress. When the President or Vice-President is removed, the Supreme Court shall review the decision. When a justice of the Supreme Court is removed, the decision shall be reviewed by a special tribunal composed of one state court judge from each state appointed by the state chief executive. The special tribunal shall meet at the call of the President.

Section 8. The Congress consists of one member elected at large from each state on the basis of state equality, and additional members elected from congressional districts in each state apportioned by population. Members elected on the basis of state equality serve for a 4-year term, and all other members for 2 years. Each member has one vote, except on the final reading of bills. Congressional elections are held biennially as provided by statute.

Section 9. A person is ineligible to be a member of Congress unless he is at least 30 years of age on the day of election and has been a citizen of the Federated States of Micronesia for at least 15 years, and a resident of the state from which he is elected for at least 5 years. A person convicted of a felony by a state or national government court is ineligible to be a member of Congress. The Congress may modify this provision or prescribe additional qualifications; knowledge of the English language may not be a qualification.

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Section 10. At least every 10 years Congress shall reapportion itself. A state is entitled to at least one member of Congress on the basis of population in addition to the member elected at large. A state shall apportion itself by law into single member congressional districts. Each district shall be approximately equal in population after giving due regard to language, cultural, and geographic differences.

Section 11. A state may provide that one of its seats is set aside for a traditional leader who shall be chosen as provided by statute for a two-year term, in lieu of one representative elected on the basis of population. The number of congressional districts shall be reduced and reapportioned accordingly.

Section 12. A vacancy in Congress is filled for the unexpired term. In the absence of provision by law, an unexpired term is filled by special election, except that an unexpired term of less than one year is filled by appointment by the state chief executive.

Section 13. A member of Congress may not hold another public office or employment. During the term for which he is elected and three years thereafter, a member may not be elected or appointed to a public office or employment created by national statute during his term. A member may not engage in any activity which conflicts with the proper discharge of his duties. The Congress may prescribe further restrictions.

Section 14. The Congress may prescribe an annual salary and allowances for members. An increase of salary may not apply to the Congress enacting it.

Section 15. A member of Congress is privileged from arrest during his attendance at Congress and while going to and from sessions, except for treason, felony, or breach of the peace. A member answers only to Congress for his statements in Congress.

Section 16. The Congress shall meet in regular, public session as prescribed by statute. A special session may be convened at the call of the President of the Federated States of Micronesia, or by the presiding officer on the written request of 2/3 of the members.

Section 17. (a) The Congress shall be the sole judge of the elections and qualifications of its members, may discipline a member, and, by 2/3 vote, may suspend or expel a member.

(b) The Congress may determine its own rules of procedure and choose a presiding officer from among its members.

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(c) The Congress may compel the attendance and testimony of witnesses and the production of documents or other matters before Congress or any of its committees.

Section 18. A majority of the members is a quorum, but a smaller number may adjourn from day to day and compel the attendance of absent members.

Section 19. The Congress shall keep and publish a journal of its proceedings. A roll call vote entered on the journal shall be taken at the request of 1/5 of the members present. Legislative proceedings shall be conducted in the English language. A member may use his own language if not fluent in English, and Congress shall provide translation.

Section 20. To become law, a bill must pass 2 readings on separate days. To pass first reading a 2/3 vote of all members is required. On final reading each state delegation shall cast one vote and a 2/3 vote of all the delegations is required. All votes shall be entered on the journal.

Section 21. (a) The Congress may make no law except by statute and may enact no statute except by bill. The enacting clause of a bill is "BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA:" A bill may embrace but one subject expressed in its title. A provision outside the subject expressed in the title is void.

(b) A law may not be amended or revised by reference to its title only. The law as revised or section as amended shall be published and re-enacted at full length.

Section 22. A bill passed by Congress shall be presented to the President for approval. If he disapproves of the bill, he shall return it with his objections to Congress within 10 days. If Congress has 10 or less days remaining in its session, or has adjourned, he shall return the bill within 30 days after presentation. If the President does not return a bill within the appropriate period, it becomes law as if approved.

ARTICLE X Executive

Section 1. The executive power of the national government is vested in the President of the Federated States of Micronesia. He is elected by Congress for a term of four years by a majority vote of all the members. He may not serve for more than 2 consecutive terms.

Section 2. The following powers are expressly delegated to the President:

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(a) to faithfully execute and implement the provisions of this Constitution and all national laws;

(b) to receive all ambassadors and to conduct foreign affairs and the national defense in accordance with national law;

(c) to grant pardons and reprieves, except that the chief executive of each state shall have this power concurrently with respect to persons convicted under state law; and

(d) with the advice and consent of Congress, to appoint ambassadors; all judges of the Supreme Court and other courts prescribed by statute; the principal officers of executive departments in the national government; and such other officers as may be provided for by statute. Ambassadors and principal officers serve at the pleasure of the President.

Section 3. The President:

(a) is head of state of the Federated States of Micronesia;

(b) may make recommendations to Congress, and shall make an annual report to Congress on the state of the nation; and

Section 4. A person is ineligible to become President unless he is a member of Congress for a 4-year term, a citizen of the Federated States of Micronesia by birth, and a resident of the Federated States of Micronesia for at least 15 years.

Section 5. After the election of the President, the Vice-President is elected in the same manner as the President, has the same qualifications, and serves for the same term of office. He may not be a resident of the same state. After the election of the President and the Vice-President, vacancies in Congress shall be declared.

Section 6. If the office of the President is vacant, or the President is unable to perform his duties, the Vice-President becomes President. The Congress shall provide by statute for the succession in the event both offices are vacant, or either or both officers are unable to discharge their duties.

Section 7. The compensation of the President or Vice-President may not be increased or reduced during his term. They may hold no other office and may receive no other compensation from the Federated States of Micronesia or from a state.

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Section 8. Executive departments shall be established by statute.

Section 9. (a) If required to preserve public peace, health, or safety, at a time of extreme emergency caused by civil disturbance, natural disaster, or immediate threat of war, or insurrection, the President may declare a state of emergency and issue appropriate decrees.

(b) A civil right may be impaired only to the extent actually required for the preservation of peace, health, or safety. A declaration of emergency may not impair the power of the judiciary except that the declaration shall be free from judicial interference for 30 days after it is first issued.

(c) Within 30 days after the declaration of emergency, the Congress of the Federated States of Micronesia shall convene at the call of its presiding officer or the President to consider revocation, amendment, or extension of the declaration. Unless it expires by its own terms, is revoked, or extended, a declaration of emergency is effective for 30 days.

ARTICLE XI Judicial

Section 1. The judicial power of the national government is vested in a Supreme Court and inferior courts established by statute.

Section 2. The Supreme Court is a court of record and the highest court in the nation. It consists of the Chief Justice and not more than 5 associate justices. Each justice is a member of both the trial division and the appellate division, except that sessions of the trial division may be held by one justice. No justice may sit with the appellate division in a case heard by him in the trial division. At least 3 justices shall hear and decide appeals. Decision is by a majority of those sitting.

Section 3. The Chief Justice and associate justices of the Supreme Court are appointed by the President with the approval of 2/3 of Congress. Justices serve during good behavior.

Section 4. If the Chief Justice is unable to perform his duties he shall appoint an associate justice to act in his stead. If the office is vacant, or the Chief Justice fails to make the appointment, the President shall appoint an associate justice to act as Chief Justice until the vacancy is filled or the Chief Justice resumes his duties.

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Section 5. The qualifications and compensation of justices and other judges may be prescribed by statute. Compensation of judges may not be diminished during their terms of office unless all salaries prescribed by statute are reduced by a uniform percentage.

Section 6. (a) The trial division of the Supreme Court has original and exclusive jurisdiction in cases affecting officials of foreign governments, disputes between states, admiralty or maritime cases, and in cases in which the national government is a party except where an interest in land is at issue.

(b) The national courts, including the trial division of the Supreme Court, have concurrent original jurisdiction in cases arising under this Constitution; national law or treaties; and in disputes between a state and a citizen of another state, between citizens of different states, and between a state or a citizen thereof, and a foreign state, citizen, or subject.

Section 7. The appellate division of the Supreme Court may review cases heard in the national courts, and cases heard in state or local courts if they require interpretation of this Constitution, national law, or a treaty. If a state constitution permits, the appellate division of the Supreme Court may review other cases on appeal from the highest state court in which a decision may be had.

Section 8. When a case in a state or local court involves a substantial question requiring the interpretation of the Constitution, national law, or a treaty, on application of a party or on its own motion the court shall certify the question to the appellate division of the Supreme Court. The appellate division of the Supreme Court may decide the case or remand it for further proceedings.

Section 9. The Chief Justice is the chief administrator of the national judicial system and may appoint an administrative officer who is exempt from civil service. The Chief Justice shall make and publish and may amend rules governing national courts, and by rule may:

(a) divide the inferior national courts and the trial division of the Supreme Court into geographical or functional divisions;

(b) assign judges among the divisions of a court and give special assignments to retired Supreme Court justices and judges of state and other courts;

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(d) govern the transfer of cases between state and national courts;

(e) govern the admission to practice and discipline of attorneys and the retirement of judges; and

(f) otherwise provide for the administration of the national judiciary. Judicial rules may be amended by statute.

Section 10. The Congress shall contribute to the financial support of state judicial systems and may provide other assistance.

Section 11. Court decisions shall be consistent with this Constitution, Micronesian customs and traditions, and the social and geographical configuration of Micronesia. In rendering a decision, a court shall consult and apply sources of the Federated States of Micronesia.

ARTICLE XII Finance

Section 1. (a) Public money raised or received by the national government shall be deposited in a General Fund or special funds within the National Treasury. Money may not be withdrawn from the General Fund or special funds except by law.

(b) Foreign financial assistance received by the national government shall be deposited in a Foreign Assistance Fund. Except where a particular distribution is required by the terms or special nature of the assistance, each state shall receive a share equal to the share of the national government and to the share of every other state.

Section 2. (a) The President shall submit an annual budget to Congress at a time prescribed by statute. The budget shall contain a complete plan of proposed expenditures, anticipated revenues, and other money available to the national government for the next fiscal year, together with additional information that Congress may require. The Congress may alter the budget in any respect.

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CONSTITUTION OF FEDERATED STATES OF MICRONESIA (continued p.

(b) No appropriation bills, except those recommended by the President for immediate passage, or to cover the operating expenses of Congress, may be passed on final reading until the bill appropriating money for the budget has been enacted.

(c) The President may item veto an appropriation in any bill passed by Congress, and the procedure in such case shall be the same as for disapproval of an entire bill by the President.

Section 3. (a) The Public Auditor is appointed by the President with the advice and consent of Congress. He serves for a term of 4 years and until a successor is confirmed.

(b) The Public Auditor shall inspect and audit accounts in every branch, department, agency or statutory authority of the national government and in other public legal entities or nonprofit organizations receiving public funds from the national government. Additional duties may be prescribed by statute.

(c) The Public Auditor shall be independent of administrative control except that he shall report at least once a year to Congress. His salary may not be reduced during his term of office.

(d) The Congress may remove the Public Auditor from office for cause by 2/3 vote. In that event the Chief Justice shall appoint an acting Public Auditor until a successor is confirmed.

ARTICLE XIII General Provisions

Section 1. The national government of the Federated States of Micronesia recognizes the right of the people to education, health care, and legal services and shall take every step reasonable and necessary to provide these services.

Section 2. Radioactive, toxic chemical, or other harmful substances may not be tested, stored, used, or disposed of within the jurisdiction of the Federated States of Micronesia without the express approval of the national government of the Federated States of Micronesia. Section 3. It is the solemn obligation of the national and state governments to uphold the provisions of this Constitution and to advance the principles of unity upon which this Constitution is founded.

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CONSTITUTION OF FEDERATED STATES OF MICRONESIA (continued p.

Section 4. A noncitizen, or a corporation not wholly owned by citizens, may not acquire title to land or waters in Micronesia.

Section 5. A lease agreement for the use of land for an indefinite term by a noncitizen, a corporation not wholly owned by citizens, or any government is prohibited.

Section 6. The national government of the Federated States of Micronesia shall seek renegotiation of any agreement for the use of land to which the Government of the United States of America is a party.

Section 7. On assuming office, all public officials shall take an oath to uphold, promote, and support the laws and the Constitution as prescribed by statute.

ARTICLE XIV Amendments

Section 1. An amendment to this Constitution may be proposed by a constitutional convention, popular initiative, or Congress in a manner provided by law. A proposed amendment shall become a part of the Constitution when approved by 3/4 of the votes cast on that amendment in each of 3/4 of the states. If conflicting constitutional amendments submitted to the voters at the same election are approved, the amendment receiving the highest number of affirmative votes shall prevail to the extent of such conflict.

Section 2. At least every 10 years, Congress shall submit to the voters the question: "Shall there be a convention to revise or amend the Constitution?". If a majority of ballots cast upon the question is in the affirmative, delegates to the convention shall be chosen no later than the next regular election, unless Congress provides for the selection of delegates earlier at a special election.

ARTICLE XV Transition

Section 1. A statute of the Trust Territory continues in effect except to the extent it is inconsistent with this Constitution, or is amended or repealed. A writ, action, suit, proceeding, civil or criminal liability, prosecution, judgment, sentence, order, decree, appeal, cause of action, defense, contract, claim, demand, title, or right continues unaffected except as modified in accordance with the provisions of this Constitution.

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Section 2. A right, obligation, liability, or contract of the Government of the Trust Territory is assumed by the Federated States of Micronesia except to the extent it directly affects or benefits a government of a District not ratifying this Constitution.

Section 3. An interest in property held by the Government of the Trust Territory is transferred to the Federated States of Micronesia for retention or distribution in accordance with this Constitution.

Section 4. A local government and its agencies may continue to exist even though its charter or powers are inconsistent with this Constitution. To promote an orderly transition to the provisions of this Constitution, and until state governments are established, Congress shall provide for the resolution of inconsistencies between local government charters and powers, and this Constitution. This provision ceases to be effective 5 years after the effective date of this Constitution.

Section 5. The Congress may provide for a smooth and orderly transition to government under this Constitution.

Section 6. In the first congressional election, congressional districts are apportioned among the states as follows: Kusaie - 1; Marianas - 2; Marshalls - 4; Palau - 2; Ponape - 3; Truk - 5; Yap - 1. If Kusaie is not a state at the time of the first election, 4 members shall be elected on the basis of population in Ponape.

ARTICLE XVI Effective Date

Section 1. This Constitution takes effect 1 year after ratification unless the Congress of Micronesia by joint resolution specifies an earlier date. If a provision of this Constitution is held to be in fundamental conflict with the United Nations Charter or the Trusteeship Agreement between the United States of America and the United Nations, the provision does not become effective until the date of termination of the Trusteeship Agreement.

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20th CONGRESS of the Federated States of Micronesia

FIRST SPECIAL SESSION

OFFICIAL RULES OF PROCEDURE

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RULE 1. ORGANIZING THE CONGRESS

Section 1. Convening of regular Congress sessions.

(a) The Congress shall meet in three regular sessions commencing on the tenth day of January, the eleventh day of May, and the twelfth day of September, unless the Presiding Officer shall set a different date or dates.

(b) The sessions required by subsection (a) above shall last for 20 calendar days, unless shortened or extended by a resolution adopted by a majority vote of all Members of the Congress.

Section 2. Convening in special session. A special session may be convened at the call of the President of the Federated States of Micronesia, or by the Speaker on the written request of two-thirds of the Members. The President of the Federated States, or the Speaker, may call a special session to convene within 30 days after the declaration of a state of emergency by the President; at such special session the Congress may consider the revocation, amendment, or extension of the declaration.

Section 3. Place of sessions. The Congress shall meet at a place in the State of Pohnpei, designated by the Speaker, or in such State of the Federated States of Micronesia as the Congress of the Federated States shall by resolution determine, at a place designated by the Speaker.

Section 4. Days and times of meetings. The Congress shall meet regularly for the transaction of business on each day during a session at 10 a.m., Monday through Friday, provided that the Congress may meet on such other days and at such other times as may be agreed upon by the Congress.

Section 5. Call to order.

(a) The Congress shall be called to order in Palikir, Pohnpei, by the most senior returning Member-elect. He shall be called a temporary Speaker and shall have the power to preserve order and decorum and decide all questions of order, subject to appeal to the Congress.

(b) At all regular and special sessions convened subsequent to the first session of each new Congress of the Federated States of Micronesia, the Congress shall

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be called to order by the Speaker.

(c) At the first session of each new subsequent Congress, the Congress shall be called to order by the most senior returning Member-elect. He shall be called a temporary Speaker.

Section 6. Temporary rules. At the first session of each new Congress of the Federated States of Micronesia, the Congress shall thereupon adopt temporary rules.

Section 7. Temporary officers and Credentials Committee. At the first session of each new Congress, the temporary Speaker shall appoint a temporary Clerk. He shall also appoint a committee of four members to examine the credentials of the Members-elect.

Section 8. Examination of credentials.

(a) At the first session of each new Congress of the Federated States of Micronesia, the Committee on Credentials shall proceed to examine the credentials of the Members-elect. If the credentials of at least eight of the Members-elect appear in order, the committee shall so report to the Congress. If the credentials of any Member-elect do not on first examination appear to be in order, the committee may make such inquiry as it deems necessary and report its findings and recommendations to the Congress at the time of its initial report, or if it so chooses, the committee may defer its inquiry and report on such Member-elect or Members-elect until after submitting its initial report. The adoption of the report or reports of the Credentials Committee by the Congress shall be final.

(b) If a person is elected or appointed to fill a vacancy in the membership, the Committee on Credentials shall proceed to examine the credentials of such person and report its findings and recommendations to the Congress.

Section 9. Oath. The person who calls the first session of each new Congress to order shall request any Justice of the Supreme Court of the Federated States of Micronesia or a presiding judge of the State court, to administer the following oath of office collectively to the Members-elect holding credentials acceptable to the Congress, and addressed to each such Member:

"I, solemnly swear (or affirm) that I will faithfully execute the Office of Senator of the Congress of the Federated States of Micronesia and will, to the best of my ability, uphold, promote, and support the laws and the Constitution of the Federated States of Micronesia, so help me God."

Section 10. Call of the roll. The Clerk or temporary Clerk shall thereupon proceed to call the roll.

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Section 11. Rules. At the first session of the Congress of the Federated States of Micronesia, the temporary Speaker shall entertain a motion for the adoption of the Official Rules of Procedure of the Congress. When properly adopted, the Rules shall govern the conduct of business at all sessions of the Congress held prior to convening the next Congress, provided that such Rules may be amended in accordance with Rule 15. If any question of procedure arises which is not specified in these Rules, it shall be decided by the Speaker, subject to appeal to the Congress. The Rules in force at the adjournment sine die of the last session of a Congress shall, until amended or changed, govern the organization of a new Congress.

Section 12. Election of permanent officers.

(a) At the first session of each new Congress of the Federated States of Micronesia, the temporary Speaker shall thereupon conduct an election for a Speaker of the Congress. Upon the election of such Speaker, the temporary Speaker shall thereupon relinquish the chair to the person so elected. In all future proceedings, during all sessions of the Congress, the Speaker so elected shall preside.

(b) At the first session of each new Congress of the Federated States of Micronesia, the Speaker shall thereupon proceed to conduct an election for the Vice Speaker and the Floor Leader, who shall be Members of the Congress. Upon their election, the Speaker shall proceed to conduct an election for the Clerk [see Rule 10, Section 14(b)(iv)], who shall be a non-Member of the Congress.

Section 13. Prayer on convening day. Following the call to order, the temporary Speaker shall thereupon call for the opening prayer provided for in rule 2, section 2(d).

Section 14. Notification of the President of the Federated States of Micronesia. Following the election of the President and Vice President during those years when a President and Vice President are elected or after the organization of the Congress during those years when a President and Vice President are not elected, the Speaker shall appoint a committee of three members to advise the President that the Congress is organized. The Congress shall stand in recess until the committee returns to report orally the accomplishment of its mission.

Section 15. Election of the President.

(a) At the first regular session of each new Congress for which Members-at-large have been elected, the Members shall proceed to elect the President of

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(b) If no nominee receives such majority vote on the first ballot, the Speaker shall announce the names of the two nominees receiving the highest number of votes, and a second and any necessary subsequent ballots shall be taken until one of the two nominees receives the necessary majority vote.

(c) In the event of a tie for the highest number of votes, the balloting shall be repeated until candidates are eliminated by receiving fewer votes than the two candidates receiving the highest number of votes on a particular ballot. Balloting shall continue until a candidate receives a majority vote of the membership.

(d) The Member elected as President shall retain his seat in the Congress until a vacancy has been declared after the election of the Vice President pursuant to section 17 of this rule.

Section 16. Election of the Vice President.

(a) After the election of the President, the Members shall proceed to elect the Vice President of the Federated States of Micronesia. Any Member may nominate a Member elected to a term of 4 years to become Vice President, except that the Member elected as President may not be nominated for Vice President. When the nominations close, the balloting for Vice President shall be taken. The Vice President shall be elected by a majority vote of all the members.

(b) If no nominee receives such majority vote on the first ballot, the procedures set forth in section 15, subsections (b) and (c), shall be followed until a Vice President is elected.

Section 17. Declaration of vacancies. After the Vice President has been elected, the Speaker shall declare vacancies in the seats occupied by the Members elected as President and Vice President.

RULE 2. TERMS AND DUTIES OF OFFICERS.

Section 1. Terms of office. The Speaker, Vice Speaker, Floor Leader, Legislative Counsel and Chief Clerk may hold office until the next Congress of the Federated States of Micronesia is called to order, unless such tenure is terminated at an

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Twentieth Congress of the Federated States of Microneisa OFFICIAL RULES OF PROCEDURE (As amended by C. R. No. 19-25) earlier date by death, resignation, election, or by action of the Congress. The removal of the Speaker, Vice Speaker, or Floor Leader from office shall require a two-thirds affirmative vote of all Members. The Chief Clerk and the Legislative Counsel may be removed by the Speaker, subject to appeal to the Congress. Vacancies shall be filled in accordance with the procedure provided in rule 1, section 12.

Section 2. Speaker. It shall be the duty of the Speaker:

(a) To announce the business before the Congress in the order prescribed by the Rules;

(b) To assign to each Member a seat on the floor of the Congress;

(d) To open the sittings of the Congress at the appointed hour by taking the chair and calling for a moment of silent prayer, except for the first day of the session when he shall designate a chaplain to open the session with prayer;

(e) To receive all communications from the other branches of the Government and present them to the Congress, and to direct the different committees to consider subjects in such messages;

(f) To receive and submit all matters properly brought before the Congress by the Members, to call for votes upon the same, and to announce the results;

(g) To authenticate by his signature all official acts and papers of the Congress, and to transmit the same as required;

(h) To make known rules of procedure and interpret such rules when so requested, and to decide points of order;

(i) To direct the activities of the Clerk, Legislative Counsel, and other administrative officers and employees of the Congress, to oversee the administration of the business of the Congress, and to appoint an Acting Clerk in the absence of the Clerk;

(j) To name, if he so desires, a Member to perform the duties of the Chair when the Vice Speaker and Floor Leader are not available to perform such duties, which Member shall be known as Speaker pro tempore while so serving, but such substitution shall not extend beyond an adjournment of any session;

(k) To administer the oath to public officials or to direct the Floor

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Leader to administer the oath to any Member from time to time; and

(l) To do and perform such other duties as may be required by law, these Rules, and as may properly appertain to the Office of Speaker.

Section 3. Vice Speaker. It shall be the duty of the Vice Speaker to exercise all the duties and powers of the Speaker in the latter's absence.

Section 4. Floor Leader. It shall be the duty of the Floor Leader:

(a) To serve as Floor Leader during sessions of the Congress, proposing routine motions which contribute to the orderly and speedy conduct of business, and to act as floor manager in aid of the speedy disposition of a bill or resolution when a Member so responsible does not assume this task;

(b) To administer the oath to any Member as may be directed by the Speaker from time to time;

(d) To perform such other duties as the Speaker may designate.

Section 5. Legislative Counsel. It shall be the duty of the Legislative Counsel:

(a) To act as counsel and legal adviser to the Congress;

(b) To render legal services to the standing committees, special committees, or any Members of Congress upon request;

(d) To draft bills and resolutions as needed or requested;

(e) To advise the Congress of needed revisions to laws or bills to bring them into conformity with the Constitution of the Federated States of Micronesia and decisions of courts with jurisdiction in the Federated States of Micronesia;

(f) To supervise the staff attorneys and researcher within the Office of

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(g) To assume such other related or additional duties as the Congress or the Presiding Officer may assign.

Section 6. Clerk. It shall be the duty of the Clerk:

(a) To attend the Congress every day it meets, unless excused by the Speaker;

(b) To have charge of all the records of the Congress and to be responsible for the same and never permit original documents to be withdrawn from his keeping unless ordered by the Speaker;

(c) To make a concise and complete memorandum of all petitions, motions, bills, resolutions, amendments, and other matters brought before the Congress, and their disposition; such memoranda shall state the nature of the matter, give the name of the introducer, and be dated each day; and such memoranda, the daily session proceedings, together with other matters ordered to be placed therein, shall constitute the journal of the day;

(d) To countersign all acts of the Congress, thus attesting to the authentication of the Speaker's signature;

(e) To prepare all bills, resolutions, and other matters;

(f) To forward promptly all letters, messages, communications, or other matters to the proper parties, either directly or through a committee, as the case may be;

(g) To deliver to the chairman of the appropriate committee all petitions, resolutions, bills, or other matters duly referred to such committee;

(h) To prepare, for the respective committees to which have been referred subjects contained in the messages of the President of the Federated States of Micronesia, a memorandum of the subjects so referred;

(i) To attach a statement to any bill or instrument which, in the absence of the Speaker and Vice Speaker and Floor Leader, has been signed by the Speaker pro tempore, that such Speaker pro tempore was duly serving; and

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(j) To do and perform all other duties and responsibilities pertaining to the position of Clerk of the Congress as the Congress shall, from time to time, direct, and as shall by law, CFSM Administrative Manual, these Rules, or Rules hereafter adopted, be assigned to him.

Section 7. Sergeant at Arms. During each session of the Congress, the Speaker shall designate a person to serve temporarily as a Sergeant at Arms whose duties shall be:

(a) To attend the daily sessions of the Congress unless excused by the Speaker;

(b) To maintain order among those present as spectators;

(d) To attend committee meetings if so requested;

(e) To serve all orders or process as directed by the Speaker;

(f) To make all required arrests of Members or other persons and to restrain the same in custody;

(g) To disallow anyone from entering the floor of the Congress except the Members, authorized employees, and official guests of the Congress; and

(h) To execute all other duties and requirements of his office.

RULE 3. QUORUM AND ATTENDANCE.

A majority of the Members shall constitute a quorum for the transaction of business. A majority of less than a quorum shall have the power to compel the attendance of absent Members and to adjourn from day to day. For the opening day of session, at least one Member from each of the four States shall be included in the initial quorum unless sufficient notice was given to permit the attendance of the Members absent and they do not answer to the quorum count. The Speaker may declare the Congress adjourned if no quorum is present at the hour of opening. For purposes of ascertaining whether a quorum exists, the Speaker shall count the Members present. During a meeting of the Congress, any Member may call upon the Speaker to determine whether a quorum exists or not, and the Speaker shall so determine and announce his

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RULE 4. PROCEDURE AND SESSIONS.

Section 1. Public sessions. Sessions of the Congress of the Federated States of Micronesia shall be open to the public.

Section 2. Language of proceedings. All legislative proceedings shall be conducted in English, provided that a Member lacking fluency in English may use his own language and the Congress shall provide translation.

Section 3. Sitting in or entering the Chamber. No Member shall sit at the desk of the Speaker or of another Member or of the Clerk, except by permission of the Speaker. A person who is not a Member of the Congress, an official interpreter, or an employee of the Congress shall not enter upon the floor during a session except at the invitation or with the permission of the Speaker.

Section 4. Communications media. Members of the press and other representatives of the public communications media desiring to report the proceedings of the Congress to the public may be admitted to the Congress by the Speaker. The Speaker may assign such person a place and facilities which will not interfere with the operations of the Congress.

Section 5. Recognition. When a Member desires recognition, he shall address the Chair, "Mr. Speaker." When recognized, he shall confine himself to the purpose for which he sought recognition. The Speaker shall not recognize a Member for the purpose of speaking in support of or opposition to a motion for a second time until every Member wishing to speak to the question has had an opportunity to be heard, unless he is the mover of a motion, or chairman of the committee reporting out a measure on the floor.

Section 6. Holding the floor and manner of address.

(a) A Member shall continue to hold the floor until such time as he ceases to speak to the question or otherwise yields the floor, except that he may yield for the raising of a point of information or order by another Member and still retain the floor and except that no Member may speak for more than 10 minutes each time on a question before the Congress, unless the Member speaks through an interpreter in which case a maximum of 20 minutes shall be allowed.

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(b) A Member shall address or refer to his fellow Members either as "Senator " or "The Senator from ."

Section 7. Closing debate and voting on the question. The Speaker may close debate and call for a vote on the question before the Congress at any time he is satisfied that every Member desiring to speak to the question has spoken or has had an opportunity to do so, subject to appeal to the Congress. If the previous question is moved and adopted, debate shall be closed, provided that the mover of the motion before the Congress on which debate is being closed may make a closing statement of 5 minutes or less in support of his motion, or delegate the right to another Member of the Congress.

Section 8. Rulings of the Chair. The Speaker shall decide all questions of order whether or not specified in these Rules, subject to appeal to the Congress, which decision shall be considered overruled if two-thirds of the Members present and voting vote not to sustain the ruling of the Speaker.

Section 9. Dress. Members, officers, and employees appearing on the floor of the Congress shall be suitably attired. The Speaker may prescribe the required dress, subject to appeal to the Congress, and make such exceptions as he sees fit.

Section 10. Interruptions. No Member shall engage in private discourse when the Speaker or a Member is speaking, nor leave the Chamber, nor walk about the floor when the Speaker is speaking, nor walk between a Member who is speaking and the Speaker.

Section 11. Disorderly manner of Members. If any Member shall conduct himself in a disorderly manner during any session of the Congress, the Speaker shall order such Member to keep his seat and preserve the peace. If the Member shall persist in his disorderly conduct, the Speaker shall order the Sergeant at Arms to remove the Member from the Chamber. The Member shall not be permitted to take his seat during the remainder of that day's session unless the Speaker shall so permit.

Section 12. Discipline of Members. The Congress may discipline its Members by censure for disorderly behavior, neglect of duty, or violation of the oath of office. The Congress may also suspend or expel a Member by two-thirds vote of the total membership of the Congress.

Section 13. Disturbance. In the case of disturbance or disorderly conduct, the Speaker may have the Chamber cleared of all persons, except Members and officers, in order to abate the disturbance or disorderly conduct.

RULE 5. ORDER OF BUSINESS.

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Section 1. Order of business.

(a) Call to Order; (b) Moment of Silent Prayer; (c) Roll Call; (d) Reading of the Journal; (e) Presidential Communications; (f) FSM Supreme Court Communications; (g) Member Communications; (h) Departmental Communications; (i) Agency or Governmental Authority Communications; [(i)](j) State Communications; [(j)] (k) State Supreme Court Communications; [(k)] (l) Municipal or Town Communications; [(l)] (m) Foreign Government Communications; [(m)] (n) Standing Committee Reports; [(n)] (o) Special Committee Reports; [(o)] (p) Unfinished Business; [(p)] (q) Bill Calendar; [(q)] (r) Resolution Calendar; [(r)] (s) Introduction of Bills and Resolutions; [(s)] (t) Miscellaneous Communications; [(t)] (u) Miscellaneous Business; [(u)] (v) Announcements; [(v)] (w) Recess.

Section 2. Change in order of business. The Congress may by previous motion direct that any matter named shall be made a special order of business and that such special order shall take precedence over all other business after the fifth order, or such lesser position on the order as the motion shall prescribe.

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RULE 6. COMMITTEES GENERALLY.

Section 1. Types of committees. There shall be seven standing committees established by the Rules. The standing committees shall be organized pursuant to Rules 6 and 7. Special committees shall be established by the Speaker as required to consider and report on such special or temporary matters as are referred to them. Special committees shall be temporary committees, which shall remain in existence until discharged by the Speaker, subject to appeal to the Congress. The Congress may resolve itself into the Committee of the Whole, consisting of the entire membership of the Congress, whenever it decides to consider a matter as a committee. The Committee of the Whole shall remain in being until such time as it dissolves itself and reports back to the Congress.

Section 2. Orders of the Congress. All committees of the Congress shall be subject to the orders of the Congress and shall faithfully carry out such orders.

Section 3. Powers and authority of committees. Each committee is hereby authorized to study and analyze all facts relating to the subjects which would fall within its jurisdiction as indicated by rule 6, section 1, or rule 7, sections 1 to 7, including, but not limited to, a needed revision of the laws or needed legislation relating to that subject, and for such purposes shall constitute an investigating committee pursuant to 3 F.S.M.C. 401, et seq., as amended. Witnesses may be summoned and examined, and documents and records may be searched and examined in accordance with 3 F.S.M.C. 401, et seq., as amended, and everything shall be done to bring all facts pertaining to the matter before the Congress.

Section 4. Duties of committees. It shall be the duty of a committee to make diligent and careful inquiry and investigation into all of the facts and circumstances connected with any bill, resolution, or matter referred to it, or any needed revision of the laws or needed legislation relating to a subject within its jurisdiction.

Section 5. Structure of committees.

(a) Subcommittees may be created within standing committees to facilitate the work of the standing committees. The members of the committee shall decide whether or not a subcommittee needs to be created, and which subjects the subcommittee will have jurisdiction over. Each subcommittee shall have at least three members, including a chairman and a vice chairman. The members of the subcommittee shall be chosen by the members of the committee. The chairman and vice chairman of the subcommittee shall be chosen by the members of each subcommittee.

(b) Subcommittees shall submit their reports in writing to the

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(c) Apart from the requirements of subsections (a) and (b) above, the rules applicable to committees apply with equal force to subcommittees of standing committees.

Section 6. Meetings.

(a) Meetings of the committees, including the Committee of the Whole, shall be open to the public unless a majority of the members thereof determine otherwise. No committee shall sit at a time when the Congress is in session without permission of the Congress.

(b) The chairman of any standing or special committee may arrange for the joint meeting of his committee with another committee to conduct their business jointly. Final action shall be taken by each committee separately.

Section 7. Appointments of members.

(a) Members of special committees shall be appointed by the Speaker, subject to appeal to the Congress.

(b) Members of standing committees shall be appointed by the Speaker, after consultation with the Members of the Congress as to the committee or committees on which each prefers to serve, subject to appeal to the Congress.

(c) No Member may serve on more than four standing committees. This subsection shall not apply if there are one or more vacancies in a State's Congressional Delegation and the application of this subsection would deprive that State of fair representation on one or more standing committees.

Section 8. Chairman and vice chairman.

(a) The chairman of each standing committee or special committee, and the chairman for each continuous session of the Committee of the Whole, shall be appointed by the Speaker, subject to appeal to the Congress. A vice chairman shall be chosen by the members of each standing committee.

(b) The chairman of each committee shall call meetings, preside at committee meetings, prepare and post the agenda, invite witnesses to appear before the committee, and prepare committee reports subject to the requirements of the Rules. The vice chairman shall perform the duties of the chairman in his absence.

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(c) A Member of Congress who serves as a chairman of a standing committee may not serve as a chairman or vice chairman of another standing committee. The Speaker, Vice Speaker and Floor Leader may not serve as a chairman or vice chairman of any standing committee.

Section 9. Committee reports.

(a) Special committees shall report within the time allowed by the Speaker. Standing and special committees shall submit their reports in writing to the Clerk who shall number the reports consecutively in the order received, cause such reports to be reproduced, and furnish a copy to each Member of the Congress. A committee report shall state findings of fact and conclusions based thereon together with a specific recommendation as to the manner in which the bill, resolution, or other matter referred to the committee should be disposed of by the Congress. A report recommending a bill for passage shall clearly state the purpose of the bill and the intent of the legislation. A report upon a bill shall state clearly any proposed amendments thereto, and a copy of the bill as proposed to be amended by the committee shall be attached thereto.

(b) A report shall be considered adopted by a committee when a majority of the members of the committee has signed the report concurring therein. A member or members not concurring in the report of the majority may so indicate by signing the report "I do not concur" or by submitting a separate minority report.

Section 10. Rights of members. A majority of the members of a committee may require the chairman to place any bill, resolution, or other matter referred to the committee on the agenda for committee consideration and to submit such a bill, resolution, or other matter to the committee for its decision.

Section 11. Withdrawal of bills, resolutions, and other matters from committee. Any bill, resolution, or other matter referred to a committee at a regular session may be withdrawn from such committee on or after the fifteenth day of the session by an affirmative vote of a majority of the Members of the Congress present, a quorum being present, provided that the bill, resolution, or other matter shall have been referred to committee six or more days prior to recall. Any bill, resolution, or other matter referred to a committee at a special session may be withdrawn by affirmative vote

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RULE 7. STANDING COMMITTEES.

The standing committees of the Congress of the Federated States of Micronesia shall be as specified herein as follows:

Section 1. Ways and Means.

(a) The Committee on Ways and Means shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to the finances and financial administration of the Government of the Federated States of Micronesia or any of the four constituent States or a municipality thereof, such subjects to include but not be limited to taxes, export duties, and tariffs; non-tax revenues; budgets; expenditures; appropriation measures; loans, borrowing, or indebtedness on public credit; monetary claims, funding arrangements, or requirements; accounting and audits, past, present or proposed; the issuance and regulation of currency; and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. Bills and resolutions or other matters pertaining to internal organization or management of the Congress of the Federated States of Micronesia shall also fall within the scope of the duties of the Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

(b) This committee shall be responsible for reviewing specific subjects in the budget of the President, and all supplementals thereto, which make a request for an appropriation, which relates to a subject matter within its jurisdiction. Pursuant to its review the committee shall recommend whether the matters referred to it, or portions thereof, will be authorized, and if so, in what amount. Following its review the committee shall promptly report its recommendation to the Congress. Those subjects which fall within the jurisdiction of this committee include, but are not limited to, the following:

(i) Department of Finance and Administration;

(ii) Office of the President;

(iii) Office of Statistics, Budget, Overseas Development Assistance and Compact Management; and

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(iv) Public Auditor;

(c) This committee shall be responsible for reviewing all reports referred to it by the Congress from other standing committees as pertain to the budget of the President and all supplementals thereto. Pursuant to said review this committee shall determine to what extent funds are available to meet the recommendations of the committee, which authored the referred report. After this determination has been made, this committee shall promptly report its recommendation to the Congress. In no instance may this committee recommend an appropriation in an amount higher than that recommended by the Committee which authored the referred report. However, this committee may recommend an appropriation in a lower amount if funds are determined to be insufficient to meet the recommendations contained in the referred report.

Section 2. Resources and Development.

(a) The Committee on Resources and Development shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to the economy of the Federated States of Micronesia and the resources thereof, including economic planning, priorities, and policies; public or private investments; development loans; foreign investment; business registration and regulations; private savings and indebtedness; bankruptcy and insolvency; secured transactions; usury and banking; insurance regulation; labor and manpower development; agriculture, forestry, and internal fisheries development; exploitation of land-based mineral resources; land management, industries, and public utilities; interstate trade and commerce; intellectual property rights; regulation and management of ownership, exploitation, and exploration of mineral or natural resources within marine space of the Federated States of Micronesia beyond 12 nautical miles from baselines; and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

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(i) Department of Resources and Development;

(ii) Pacific Asian Travel Association;

(iii) National Oceanic Resource Management Authority;

(iv) Pacific Island Development Program; and

(v) Office of Environment and Emergency Management.

Section 3. Education.

(a) The Committee on Education shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to public education and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

(b) This committee shall be responsible for reviewing specific subjects in the budget of the President, and all supplementals thereto, which make a request for an appropriation which relates to a subject matter within its jurisdiction. Pursuant to its review the committee shall recommend whether the matters referred to it, or portions thereof, will be authorized, and if so, in what amount. Following its review the committee shall promptly report its recommendation to the Congress. Those subjects which fall within the jurisdiction of this committee include, but are not limited to, the following:

(i) Department of Education

(ii) Board of Regents of the College of Micronesia;

(iii) College of Micronesia operations;

(iv) Compact Section 221(b) programs;

(v) Vocational agricultural programs; and

(vi) East-West Center.

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Section 4. Judiciary and Governmental Operations. (a) The Committee on Judiciary and Governmental Operations shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to civil and criminal laws; immigration; judicial administration and organization; land laws and traditional rights; suffrage and National elections; proposed revisions of statutes; governmental organization, structure, or functions; civil service; patents and copyright; insurance, securities, and insolvencies; bankruptcy; postal service and functions; National Capital administration and management; constitutional amendments; judicial appointments; Presidential impeachment or judicial removal; suspension or expulsion of Members of the Congress; and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

(i) Department of Justice;

(ii) Office of the Public Defender;

(iii) National Judiciary; and

(iv) National Postal Service.

Section 5. External Affairs.

(a) The Committee on External Affairs shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to the National defense and security; foreign affairs; international trade and commerce, including matters relating to establishment of embassies, consulates, or liaison offices in foreign countries; any treaty-related matters, including diplomatic

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(b) This committee shall be responsible for reviewing specific subjects in the budget of the President, and all supplementals thereto, which make a request for an appropriation which relates to a subject matter within its jurisdiction. Pursuant to its review the committee shall recommend whether the matters referred to it, or portions thereof, will be authorized, and if so, in what amount. Following its review the committee shall promptly report its recommendation to the Congress. Those subjects which fall within the jurisdiction of this committee include, but are not limited to, the following:

(i) Department of Foreign Affairs;

(ii) United Nations Economic & Social Commission for Asia and the Pacific;

(iii) South Pacific Commission; and

(iv) International Civil Aviation Organization.

Section 6. Transportation and Communications.

(a) The Committee on Transportation and Communications shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to all forms of communications, including, but not limited to, telephone, telegraph, radio, television, and shortwave; regulation of broadcasting and broadcast facilities; land, sea, and air transportation, including regulation and management of navigation and shipping; aeronautics and air navigational facilities; and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

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(b) This committee shall be responsible for reviewing specific subjects in the budget of the President, and all supplementals thereto, which make a request for an appropriation which relates to a subject matter within its jurisdiction. Pursuant to its review the committee shall recommend whether the matters referred to it, or portions thereof, will be authorized, and if so, in what amount. Following its review the committee shall promptly report its recommendation to the Congress. Those subjects which fall within the jurisdiction of this committee include, but are not limited to, the following:

(i) Department of Transportation, Communication and Infrastructure; and

(ii) Telecommunications Corporation.

Section 7. Health and Social Affairs.

(a) The Committee on Health and Social Affairs shall consist of not more than seven members with at least one member from each of the four States. It shall be the duty of this committee to consider and report on all bills, resolutions, and other matters referred to it pertaining to the preservation of the physical and natural environment; physical and mental health of the general public; public welfare; social security and general well-being of the people of the Federated States of Micronesia; and other related subjects, including Presidential nominations submitted to the Speaker which require the advice and consent of Congress. It shall be the duty of this committee to consider, investigate, and recommend to the Congress any needed revisions of existing laws or new legislation relating to any subject matter within its jurisdiction.

(b) This committee shall be responsible for reviewing specific subjects in the budget of the President, and all supplemental requests thereto, which make a request for an appropriation that relates to a subject matter within its jurisdiction. Pursuant to its review the committee shall recommend whether the matters referred to it, or portions thereof, will be authorized, and if so, in what amount. Following its review the committee shall promptly report its recommendation to the Congress. Those subjects that fall within the jurisdiction of this committee include, but are not limited to, the following:

(i) Department of Health and Social Affairs;

(ii) Office of National Archives, Culture and Historic Preservation;

(iii) Office of Gender Development and Women Affairs; and

(iv) Office of Youth and Sports.

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RULE 8. BILLS, RESOLUTIONS, AND AMENDMENTS.

Section 1. Property of the Congress. All bills or resolutions introduced in the Congress and committee reports thereon shall be deemed the property of the Congress and under its control.

Section 2. Types of measures. The following are measures to be considered in the Congress:

(a) Congressional Bill (C.B.), which shall identify bills introduced in the Congress; and

(b) Congressional Resolution (C.R.), which shall identify resolutions introduced in the Congress.

Section 3. Format of bills and resolutions.

(a) All bills and resolutions shall be typewritten with black ribbon, double-spaced leaving a left margin of one and one-half inches and with the number of the line appearing on each line at the left margin.

(b) Bills and resolutions for introduction shall be submitted in an original and four copies. Each original copy of a bill or resolution shall be dated and signed by the Member introducing the measure at the bottom of the last page thereof. The introducer thereof may permit other Members to affix their signatures to the measure. When a Member wishes to indicate he is introducing a measure by specific request without necessarily sponsoring it, he may affix the words "by request" after his signature.

Section 4. Numbering of bills and resolutions. Bills and resolutions shall be numbered by the type of measure with the numerical designation of the Congress followed by numerals in consecutive order corresponding with their respective order of introduction. The first time a bill or resolution is amended, the designation "C.D.1" shall be appended after the numerical designation of the bill or resolution to indicate "Congressional Draft 1." Each time the bill or resolution is subsequently amended, the numerical designation shall be increased by one.

Section 5. Form of bills. To pass First or Second Reading, each bill shall:

(a) Contain an enacting clause reading: "BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA:";

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(b) Embrace but one subject which subject shall be expressed in the title; and

(c) Not amend or revise an existing law by reference to its title only, but the law as revised, or section as amended, shall be set forth at full length in the bill.

Section 6. Deadlines for introduction and calendaring of bills and resolutions. To promote the orderly consideration of matters before Congress, the Speaker, in any session, may establish a date after which no further bills or resolutions may be introduced, and a date after which no further bills or resolutions may be placed on the Bill or Resolution Calendar for consideration during that session. In establishing such deadlines, the Speaker may place such limitations on the effect of the deadlines or create such exceptions as he deems appropriate.

Section 7. Duplication and distribution of bills, resolutions and committee reports.

(a) The Clerk shall be responsible for making a sufficient number of copies of bills and resolutions, when introduced, and committee reports, when submitted to him/her by a committee.

(b) The Clerk shall provide each Member with a copy of each bill and each resolution and each amended copy thereof, at the time of introduction, in amended form following submission of a report with amendments by a committee, or after amendment on the floor if required by rule 8, section 9. The Clerk shall provide each Member with a copy of each report of each committee at the time that the report is placed on the Order of the Day.

(c) A bill or resolution shall not be placed on the Bill or Resolution Calendar unless a copy thereof and the pertinent reports have been duplicated and distributed to each Member on the previous day of the session.

Section 8. Referral and reading of bills.

(a) Following duplication, the Speaker, after consultation with the Vice Speaker and Floor Leader, shall refer bills to an appropriate committee or committees. The Speaker shall announce to the Congress each bill's referral at the time it is made. The Speaker may place a bill on the Bill Calendar for First Reading without referral to a committee, but such action shall not be adopted unless a majority of all

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Members vote in favor of it.

(b) Committee reports shall first be delivered to the Clerk, who shall place a number on them in consecutive order and cause the same to be printed and distributed to Members.

(c) The reports of committees reporting on a bill shall be separated from the bill and acted on separately. Congress may not consider committee reports for adoption until the next session day following the day on which the committee reports have been distributed to the Congress. Such reports may recommend that the bill, in its original or in amended form:

(i) Pass First and Second Readings;

(ii) Be favorably considered but first be referred to another committee or be passed to the next committee to which it was initially referred; or

(iii) Be filed.

If a bill has been referred to more than one committee, the Congress shall receive and consider the reports of the second and subsequent committees prior to the First Reading of the bill. The First Reading of a bill shall be by its title, provided that the Clerk shall read the bill at length if requested to do so by six Members present.

(d) A copy of each bill, which has passed First Reading, shall be submitted to the Legislative Counsel for review, as to the form prior to being placed on the Bill Calendar for Second Reading. The Counsel shall, if necessary, make a report on the bill to the Speaker without delay.

(e) The Clerk shall place bills on the Bill Calendar in the order received from the several committees or from the Speaker if the bill has not been so referred.

(f) Upon Second Reading, a bill shall be read by title, provided that the Clerk shall read the bill at length if requested to do so by six Members present.

(g) No appropriation bills, except those recommended by the President for immediate passage or to cover the operating expenses of Congress, may be passed on Final Reading until the bill appropriating money for the budget of the National Government has been enacted.

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Section 9. Consideration of resolutions.

(a) Following duplication and distribution of a copy to each Member of the Congress, the Speaker may order that a resolution be placed on the Resolution Calendar or be referred to one or more committees, subject to the action of the Congress. The Speaker shall announce to the Congress each resolution's referral at the time it is made.

(b) The reports of the committees reporting on a resolution shall be separated from the resolution and acted on separately. The report may recommend that the resolution:

(i) Be placed on the Resolution Calendar for adoption;

(ii) Be favorably considered but first be referred to another committee or be passed to the next committee to which it was initially referred, or

(iii) Be filed.

(c) If a resolution has been referred to more than one committee, the Congress shall receive and consider the reports of the second and subsequent committees and shall take appropriate action thereon.

(d) The Clerk shall place the resolutions on the Resolution Calendar for adoption in the order received from the Speaker, provided that if they were referred to a committee, they shall be placed on the Resolution Calendar in the order they were received from the final committee considering them.

(e) A resolution upon the Resolution Calendar shall be read by title. A majority of the Members present may request a reading of a resolution at length.

Section 10. Amendments. Amendments to bills or resolutions may be offered on the floor of the Congress by any Member, provided that the proposed amendment is in writing. Such amendment shall be read by the Clerk. Unless the amendment is a corrective or technical amendment, making no substantive change, the entire bill or the page or pages affected, as the Speaker shall direct, shall be reduplicated and distributed to the Members prior to the next reading of the bill. Amendments to bills offered on the floor which are substantive and not merely corrective or technical, shall only be offered before first reading of a bill. Amendments to bills offered on the floor which are corrective or technical, making no substantive change to the bill, may be offered before first or second reading of a bill. Any Member may object to an amendment as not being

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Section 11. Certifying and transmitting of bills and resolutions.

(a) When a bill passes or a resolution is adopted, it shall be certified by the Speaker and by the Chief Clerk, noting the day of its passage or adoption.

(b) The Chief Clerk shall cause each bill which has passed First and Second Readings to be prepared in final form and shall transmit the original to the President within 30 days. The Speaker will authenticate it by his signature, thus certifying to the accuracy of the bill so transmitted, and the same thereof shall be attested to by the Chief Clerk. The final form is prepared by the Chief Clerk for the President's signature and public printing.

(c) The Chief Clerk shall cause each resolution, which has been adopted to be prepared in final form and shall transmit the originals to the addressees within 30 days. The Speaker will authenticate them by his signature, thus certifying to their accuracy; the same shall be attested to by the Chief Clerk.

Section 12. Overriding a Presidential veto. Whenever a bill passed by the Congress is disapproved by the President, the Speaker shall refer the bill and the President's reasons for disapproving to the committee to which the measure was originally referred. The committee shall then report on the measure and recommend that the measure either be overridden or not overridden. The bill may be withdrawn from the committee by majority vote of the Members of Congress present, a quorum being present, at any time subsequent to such referral to the committee notwithstanding the time periods established in rule 6, section 11. Overriding requires an affirmative vote by at least three State delegations, such vote to be conducted according to rule 10, section 12. If a bill that was disapproved by the President is overridden by the Congress, the Clerk shall transmit the bill to the President under the certification of the Speaker.

RULE 9. MOTIONS.

Section 1. Seconding. No motion shall be considered by the Congress until it has been seconded. This requirement shall not apply to points of privilege, information, or order, or to requests to withdraw a motion.

Section 2. Property of the Congress. After a motion is stated by the Speaker or read by the Clerk, it shall be the property of Congress and shall be disposed of by the Congress unless withdrawn as provided in this rule.

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Section 3. Main and subsidiary motions. A Member of Congress may be the mover of a main motion at the time provided for in the order of business; which main motion shall have as its purpose the carrying out of the business of the Congress. Whenever any main motion shall be under discussion, the only subsidiary motions relative thereto which shall be entertained are:

(a) Lay on the table; (b) The previous question; (c) Defer to the end of the day's calendar; (d) Defer to the end of the calendar; (e) Postpone definitely, or to a certain time; (f) Commit or Refer, or Recommit; (g) Amend; and (h) Postpone indefinitely, which motions shall have precedence in the order named. The first, second, third and fourth motions shall be decided without debate and shall be put to vote as soon as made and seconded. All the rest of the motions and the main motion shall be subject to debate and shall be put to vote in accordance with the provisions of the Rules. If a motion to amend a specific matter is defeated, it shall not be revived on the same day. No more than one motion to amend an amendatory motion shall be in order at the same time. If a motion to amend an amendment is defeated, another amendment to the amendatory motion is in order.

Section 4. Privileged motions.

(a) A Member of Congress may be the mover of a privileged motion at any time such a motion is appropriate to the order of business. A privileged motion shall take precedence over main and subsidiary motions and shall be disposed of before the Congress proceeds with other business.

(b) A Member may raise a point of privilege concerning a matter which relates to him as a Member of the Congress or which relates to the privileges or welfare of the Congress. When a Member raises a point of privilege, the Speaker shall interrupt the proceedings of the Congress and ask the Member to state his point. The point shall not be debatable.

(c) A Member may move to recess for or to a specific time, or at the call of the Chair. The motion to recess shall be decided without debate and shall be put to vote as soon as made. The Speaker may recess the Congress for or to a specific time or at the call of the Chair, subject to appeal to the Congress.

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(d) A Member may move to adjourn, and such a motion shall take precedence over all other motions. The motion shall be decided without debate and shall be put to vote as soon as made, provided that the motion to adjourn to a specified time or sine die shall be subject to debate and amendment. If the motion to adjourn is adopted, action on the question before the Congress shall be discontinued and shall be considered on the next meeting day during the regular order of business. If the motion to adjourn is defeated, such a motion shall not again be in order until the disposal of the new question before the Congress. The Speaker may adjourn the Congress for or to a specific time or to the time provided in rule 1, section 4, subject to appeal to the Congress.

Section 5. Incidental motions.

(a) A Member of Congress may be the mover of an incidental motion at any time such a motion is appropriate to the order of business.

(b) A Member may raise a point of information at any time on any subject, including the procedure governing the disposal of a matter or motion before the Congress. When a Member raises a point of information, the Speaker shall ask the Member to state his point. The point shall not be debatable. The Speaker shall respond to the point of information as soon as raised or request another Member to respond. The Speaker may consider the question improper and choose not to consider the point.

(c) A Member may raise a point of order at any time such a point is appropriate to the order of business. The subject of such point shall be whether the Rules and applicable laws governing the conduct of business in the Congress are being observed. When a Member raises a point of order, the Speaker shall interrupt the proceedings and ask the Member to state his point. The point of order shall not be debatable and shall be ruled upon by the Speaker as soon as raised, subject to appeal to the Congress. If the ruling of the Speaker is appealed, the Member raising the point of order and the Speaker shall each be allowed five minutes to explain his position or ruling.

(d) A Member may move to withdraw his motion. When a Member moves to withdraw his motion, the Speaker shall interrupt the proceedings and permit the motion to be withdrawn if there has been no decision on or amendment to the motion as of the time the Member requests withdrawal of his motion.

(e) A Member may move for division of question when he finds two or more specific subjects within the same general subject of a bill or resolution before the Congress and desires that each such specific subject be considered and voted on separately. When a Member moves for division of the question, the Speaker shall interrupt the proceedings and permit the Member to make his motion, which motion shall

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(f) A Member may move for a call of the Congress at any time that he desires all present Members to remain on the floor and all absent Members to be required to attend the session. When a Member moves for a call of the Congress, the Speaker shall interrupt the proceedings and permit the mover to make his motion. The motion shall be decided without debate and be put to vote as soon as made. The motion, if adopted, shall remain in effect until adjournment or the call of the Congress is removed by action of the Speaker, subject to appeal to the Congress. The Speaker may order a call of the Congress, subject to appeal to the Congress.

(g) A Member may move to remove a bill or resolution from the table at an appropriate time in the order of business of the Congress. The motion shall be decided without debate and shall be put to vote as soon as made.

(h) A Member may move to suspend one or more sections or paragraphs of the Rules. Such a motion shall state the specific purpose to be accomplished by suspension of the Rules and the specific sections or paragraphs of the Rules which shall be suspended. When a Member moves for suspension of the Rules, the Speaker shall permit the mover to make his motion. The motion shall be decided without debate and shall be put to vote as soon as made, and shall require an affirmative vote by two-thirds of the Members present for adoption. Any suspension of the Rules shall terminate when the specific purpose to be accomplished by suspension of the Rules has been disposed of by the Congress.

Section 6. Motion to reconsider. When a main motion has been made once and carried in the affirmative or negative, it shall be in order for any Member of the Congress to move to reconsider it on the same or succeeding days of the session. Such motion shall take precedence over all other motions except a motion to adjourn or to recess or a motion to recall. The motion shall be decided without debate and shall be put to a vote as soon as made. The motion to reconsider shall be deemed to have passed if the number of affirmative votes equals or exceeds the number required for passage of the main motion being reconsidered. When a motion for reconsideration has been decided, a second motion for reconsideration of the same question shall not be in order.

Section 7. Motion to recall. When a bill, or other matter upon which a vote has been taken has passed out of the possession of the Congress and has been transmitted to the President of the Federated States of Micronesia, it shall be in order for any Member of the Congress to move for recall of the bill, resolution, or other matter by requesting the

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President to return the bill, resolution, or other matter to the Congress, and such motion shall take precedence over all motions except a motion to adjourn or to recess. The motion shall be decided without a debate and shall be put to vote as soon as made. An affirmative vote of three State delegations is required to recall a bill. When a motion for recall has been decided and defeated, a second motion for recall of the same bill shall not be in order. If the motion for recall is adopted and the bill, resolution, or other matter returned as requested, it shall then be before the Congress for reconsideration in the regular order of business.

Section 8. Previous question. A Member may move to the previous question, provided that the Speaker first ascertains that an opportunity to speak on the question has been provided to at least one Member in each of the State delegations. The motion for the previous question shall be decided without debate and shall be put to vote as soon as made. The adoption of the motion shall require a majority of the entire membership of the Congress. The adoption of the motion for the previous question shall close debate and require the Speaker to put the previous question before the Congress for a vote.

RULE 10. VOTING.

Section 1. Methods of voting. There shall be four methods of voting:

(a) By voice vote;

(b) By the raising of hands;

(d) By call of the roll of the Members and recording of the vote of each Member by the Clerk.

Section 2. Choice of method of voting. The Speaker may designate the method of voting to be followed by the Congress in determining a question, subject to the provisions of this rule.

Section 3. Voice vote. Voice vote shall be the usual and ordinary method of voting in the Congress. Whenever the Congress shall be ready to vote on any question, the Speaker shall state the question. He shall then request all those in favor of the motion to vote "Aye" in a clear, loud voice. The Speaker shall then request all those opposed to the motion to vote "No" in a clear, loud voice. The Speaker shall then announce the results of the vote to the Congress.

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Section 4. Raising of hands. If the Speaker so determines, the vote shall be by the raising of hands. The Speaker shall state the question. He shall then call upon those in favor of the motion to raise their right hands. The Clerk shall count the number of hands raised and report to the Speaker. The Speaker shall then call upon those opposed to the motion to raise their right hands. The Clerk shall count the number of hands raised and report to the Speaker.

Section 5. Secret ballot. If three Members shall request a vote by secret ballot, the Speaker shall conduct such a vote, provided that at the time of such request, a roll call vote is not required or has not been requested. The Clerk shall distribute ballots to the Members, restate the question, and instruct those in favor of the motion to write "Yes" on their ballots and those opposed to write "No." If a Member writes "Abstain" or makes any other mark on his ballot other than "Yes" or "No," it shall be recorded as if he had written "Yes." The Clerk shall collect and tally the ballots and report the results thereof to the Speaker who shall announce the results of the vote to the Congress. The ballots shall be available during the remainder of that day's session for inspection by any Member.

Section 6. Call of the roll. If one-fifth of the Members present shall request a call of the roll or if such a call is required by these Rules or the applicable provisions of law, then the Speaker shall announce a call of the roll. The Speaker shall state the question calling upon those in favor of the motion to respond "Aye" when their names are called and those opposed to respond "No" when their names are called. The Clerk shall call the roll, recording the vote of each Member in the Journal. He shall inform the Speaker of the results of the call of the roll who shall, in turn, announce the results of the vote to the Congress.

Section 7. Nonvoting. No Member present in the Congress shall refrain from voting unless excused in accordance with section 8 of this rule. A Member who is present who fails to respond to the call of his name upon a call of the roll shall be individually instructed by the Speaker to respond "Aye" or "Nay," and if he still fails to vote, the Speaker shall order the Clerk to record his vote in the affirmative. No abstention from voting will be recognized. If, on a roll call vote, any Member responds "Abstain", his vote will be recorded in the affirmative.

Section 8. Conflict of interest. No Member shall be permitted to vote upon any matter in which he has a distinct, individual, pecuniary interest or which will affect his right to a seat in the Congress or in a matter in which his individual conduct is involved. When any Member has a distinct, individual, pecuniary interest, which he believes might disqualify him from voting on a question, he shall stand and disclose such interest to the Congress. The Speaker shall thereupon rule as to whether the Member shall or shall not be disqualified from voting on the question, subject to appeal to the

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Congress.

Section 9. Change of vote. A Member shall not be allowed to vote or to change his vote after the announcement of the results of the vote by the Speaker, or after the collection of the ballots, if the vote is by secret ballot.

Section 10. Action of the Congress. Any action of the Congress shall require a majority of the vote of the Members present, a quorum being present, unless otherwise provided by these Rules.

Section 11. Call of roll on First Reading. The roll shall be called on the First Reading of a bill, which shall pass First Reading if two-thirds of all Members of the Congress vote in the affirmative.

Section 12. Voting by State delegation on Second Reading.

(a) Each State delegation is entitled to cast one vote on the Second Reading of a bill. An affirmative vote of three States is required to pass a bill on Second Reading. The Second Reading of a bill shall not take place on the same calendar day as the First Reading.

(b) The Speaker shall announce a call of the roll of each State delegation on the Second Reading of a bill. The chairman of each State delegation, or his designee, shall announce the vote of his delegation. The vote announced by the Chairman or his designee is final, except that any Member of the delegation may request a poll of the delegation. In the event a poll is requested, the Clerk shall then call the name of each Member of the delegation. If a majority of the Members of the delegation present cast votes in favor of the bill or equal numbers vote in favor and against the bill, the vote of the delegation shall be considered affirmative.

Section 13. Overriding a Presidential veto. Each State delegation shall cast one vote upon a vote when voting to override a Presidential veto. An affirmative vote of three States is required to override a veto. The procedures for casting delegation votes set forth in rule 10, section 12, shall be followed.

Section 14. Other votes.

(a) Approval of the following advice and consent nominations require a two-thirds vote of all Congress Members:

(i) Approval of Presidential appointment of a Justice of the Supreme Court;

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(ii) Approval of Presidential appointment of an ambassador;

(iii) Approval of Presidential appointment of principal officers in the National Government; and

(iv) Approval of Presidential appointment of the Public Auditor.

(b) The following actions may be taken by a vote of at least two-thirds of the Members of Congress:

(i) Ratification of a treaty;

(ii) Removal of the President, Vice President, or a justice of the Supreme Court for treason, bribery, or conduct involving corruption in office; [and]

(iii) Removal of the Public Auditor from office for cause; and

(iv) Approval of appointment of the Legislative Counsel and the Chief Clerk by secret ballot.

Section 15. Actions of Congress requiring votes as specified in these Rules.

No. Action Required Majority No. Rule

1. Quorum Eight Members 3

2. First Reading of bill Ten Members 10, section 11

3. Second Reading of bill Three State delegations 10, section 12

4. Overriding veto Three State delegations 10, section 13

5. Calling special session Written request of ten Members 1, section 2

6. Election of President Eight Members 1, section 15; and Vice President 1, section 16

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7. Removal of Officers Ten Members 2, section 1

8. Suspend or expel Member Ten Members 4, section 12

9. Consent to appointment Ten Members 10, section 14 of ambassadors, principal executive officers, and the Public Auditor

10. Approval of appointment Ten Members 10, section 14 of Supreme Court Justices

11. Removal of President, Ten Members 10, section 14 Vice President, and Supreme Court Justices

12. Removal of Public Auditor Ten Members 10, section 14

13. Ratification of treaty Ten Members 10, section 14

14. Adoption of previous Eight Members 9, section 8 question

15. Move to previous question Eight Members 9, section 8

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No. Action Required Majority No. Rule

16. Amendment of Rules Eight Members 15

17. Withdrawal of measure from Majority of Members present 6, section 11 committee

18. Reading of a bill at length Six Members 8, section 8

19. Reading of a resolution Majority of Members present 8, section 9

20. Suspension of rules Ten Members 9, section 5

21. Sustain appeals from Ten Members 4, section 8 rulings of Speaker

22. Dispense with reading Majority of Members present 13, section 2 of Journal

23. Voting by secret ballot Three Members 10, section 5

24. Voting by call of the roll Three Members 10, section 6

25. Motion to reconsider a main Same majority as required for 9, section 6 motion passage of main motion

26. Closing committee meeting Majority of committee members 6, section 6

27. Adoption of committee report Majority of committee members 6, section 9 by committee

28. Requiring committee Majority of committee members 6, section 10 consideration of a matter referred to committee

29. All other actions Majority of Members present, a 10, section 10 quorum being present

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Section 16. Secret ballot required. Voting shall be by secret ballot on all votes to approve advice and consent nominations, including, but not limited to, votes on Supreme Court justices, ambassadors, principal officers in the National Government, Public Auditor, and members of boards, commissions and authorities. RULE 11. WARRANTS, SUBPOENAS, OATHS, AND CONTEMPT.

Section 1. Warrants, subpoenas, and oaths.

(a) The Speaker, committee chairman, and other authorized Members may issue warrants, subpoenas, or other processes and administer oaths in accordance with 3 F.S.M.C. 401, et seq. Any witness neglecting or refusing to attend a session of the Congress or a committee meeting after being properly subpoenaed may be arrested by the Sergeant at Arms or any police officer of the National Government or any State government in the Federated States of Micronesia and brought before the Congress or a committee thereof, as the case may be. The Speaker may issue a warrant to carry into effect the orders of the Congress or any committee thereof, for the arrest of an offender.

(b) The Speaker, committee chairmen, and other authorized Members may administer an oath to witnesses appearing before a committee of Congress. The oath should read substantially as follows:

"I do solemnly swear that I will tell the whole truth and nothing but the truth in the deliberations before this committee of the Congress of the Federated States of Micronesia."

Section 2. Contempt. Any person who shall be guilty of disrespect of the Congress by any disorderly or contemptuous behavior in its presence or before any of its committees, or who shall assault or detain any witness of the Congress or its committees, or who shall violate rule 12, section 4, shall be in contempt of the Congress. The Speaker may issue a warrant of arrest to the Sergeant at Arms or any police officer of the National Government or any State government in the Federated States of Micronesia for the arrest of a person found to be in contempt of the Congress.

RULE 12. ADMINISTRATION.

Section 1. Attendance. The Speaker shall certify the attendance of Members at a session or upon official legislative business when the Congress is not in session for the purpose of establishing entitlement to per diem or other allowances.

Section 2. Employees. Employees of the Congress shall be appointed pursuant to law and the CFSM Administrative Manual.

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Section 3. Papers of the Congress. At the end of each session all measures, petitions, and other papers referred to committees of the Congress shall be delivered by the chairmen thereof to the Clerk, together with all recorded evidence taken by such committees and documents and other pages submitted to them. The Clerk shall report any failures to comply with this rule to the Speaker.

Section 4. Confidential documents. The Speaker may declare any document or other paper which is the property of the Congress to be confidential, subject to an appeal to the Congress. If a document or other paper is declared confidential, the Clerk shall mark such document or other paper confidential and distribute it only to Members of the Congress and persons authorized by the Speaker to view such confidential document or other paper, and to no other persons. No Member or other person shall show or distribute such confidential document or other paper to any person not authorized to view it.

RULE 13. THE JOURNAL.

Section 1. Maintaining the Journal. The Congress shall keep a Journal of its proceedings in English and shall compile and publish the Journal for each session of the Congress. The Journal of the session shall include the journals of the day compiled by the Clerk as defined in rule 2, section 5(c), the Official Rules of Procedure of the Congress, and the statements of Members appended to the journals of the day and may include such other matters as the Congress or the Speaker, subject to the action of the Congress, may direct. The Clerk shall keep note of all questions of order not specified in these Rules and decided under rule 1, section 11, or rule 4, section 8, and append them for publication in the Congressional Journal.

Section 2. Reading and correcting the Journal. The journal of each day shall be read the following day and shall be corrected and/or approved by vote of the Congress, provided that the Speaker shall correct and/or approve the journal of the last day of a session. The Congress, by majority vote of the Members present, may dispense with such reading. Subsequent to the approval of the journal of the day, the Clerk, with the permission of the Speaker, may make nonsubstantive corrections therein, including such matters as spelling of words and grammatical construction of sentences.

Section 3. Appending explanations to the Journal. Each Member shall have the right to append to the journal of the day a statement explaining his vote on any matter being voted upon that day, including his vote on a bill on First Reading or Second Reading. Such a statement or statements shall not exceed in total 300 words in a single day and shall be submitted to the Clerk on the day in which the action occurs. The statement may be in English or in both English and the native language of the Member or

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RULE 14. SPECIAL SESSIONS.

For the purposes of rule 8 of these Rules, special sessions of the Congress of the Federated States of Micronesia shall be treated as regular sessions. Bills and resolutions introduced during a special session shall be numbered consecutively, starting with the number following the last number used in the last preceding session of the Congress for such bills or resolutions. At any session, including a special session, all measures shall retain the status which they had at the close of the last preceding session of a Congress, until acted upon during such session. It shall not be necessary to repeat any step in the legislative procedure already accomplished in any previous session of the same Congress.

RULE 15. AMENDMENT OF THE RULES.

The Official Rules of Procedure of the Congress shall not be amended in any way or manner without a day's notice being given of the motion to amend the Rules by the Member proposing to do so. The giving of notice shall consist of:

(a) Submitting a written copy of the proposed amendment to the Speaker; and

(b) Distributing a copy of the proposed amendment to the Members in session.

An amendment to the Rules shall be deemed adopted when approved by a majority vote of the total membership of the Congress. Suspension of the Rules shall not constitute an amendment of the Rules.

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NINETEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA

FIRST REGULAR SESSION, 2015 C.R. NO. 19-25

A RESOLUTION To amend section 14 of rule 10 of the Official Rules of Procedure of the Nineteenth Congress of the Federated States of Micronesia, by adding a sub-subsection (iv) to subsection (b) to include appointment of Chief Clerk and Legislative Counsel by secret ballot. WHEREAS, the Congress of the Federated States of Micronesia is governed by its Official Rules of Procedure; and WHEREAS, rule 15 of the Official Rules of Procedure stipulates that a motion is required to amend the said rules; and WHEREAS, a Congressional Resolution is a transparent and open mechanism for an amendment to the Official Rules of Procedure; and WHEREAS, the Members of the Nineteenth Congress of the Federated States of Micronesia desire to add a sub-subsection (iv) to subsection (b), to require that the appointment of the Chief Clerk and the Legislative Counsel to be by at least two-thirds vote of the Members of Congress and by secret ballot; now, therefore, BE IT RESOLVED by the Nineteenth Congress of the Federated States of Micronesia, First Regular Session, 2015, that section 14 of rule 10 of the Official Rules of Procedure of the Nineteenth Congress of the Federated States of Micronesia is amended to read as follows: “Section 14. Other votes. (a) Approval of the following advice and consent nominations require a two- thirds vote of all Congress Members: (i) Approval of Presidential appointment of a Justice of the Supreme Court; (ii) Approval of Presidential appointment of an ambassador;

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(iii) Approval of Presidential appointment of principal officers in the C.R. NO. 19-25

National Government; and (iv) Approval of Presidential appointment of the Public Auditor. (b) The following actions may be taken by a vote of at least two-thirds of the Members of Congress: (i) Ratification of a treaty; (ii) Removal of the President, Vice President, or a justice of the Supreme Court for treason, bribery, or conduct involving corruption in office; [and] (iii) Removal of the Public Auditor from office for cause; and (iv) Approval of appointment of the Legislative Counsel and the Chief Clerk by secret ballot.” BE IT FURTHER RESOLVED that a certified copy of this resolution be transmitted to the President of the Federated States of Micronesia.

ADOPTED: May, 28, 2015 /s/ Wesley W. Simina Wesley. W. Simina Speaker, FSM Congress

ATTEST: /s/ Liwiana Ramon Ioanis Liwiana Ramon Ioanis Chief Clerk FSM Congress

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FIRST SPECIAL SESSION

INDEX OF LEGISLATION

295

INDEX

CONGRESSIONAL BILLS

Twentieth Congress of the Federated States of Micronesia [FIRST SPECIAL SESSION – 2017]

C.B. Page NO. SHORT TITLE as introduced SCR. No. No.

C. B. No CD2: TO ENACT A NEW CHAPTER 1 OF TITLE 36 OF THE CODE OF THE SCR. No. 20- 87-88, FEDERATED STATES OF MICRONESIA (ANNOTATED), AND TO REPEAL THE 20-34 35 125- EXISTING CHAPTER 1 IN ITS ENTIRETY, TO RENUMBER CHAPTER 2 OF TITLE 36 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA AS CHAPTER 3, 08/03/17 127, FOR THE PURPOSE OF CREATING A NEW FSM NATIONAL CORPORATIONS 189, LAW, AND FOR OTHER PURPOSES.(Harper By Request) 280 C.B. No. TO CREATE A NEW SUBTITLE II OF TITLE 24 OF THE CODE OF THE FEDERATED W/Placed Viii, 20-41 STATES OF MICRONESIA, AS AMENDED, TO ESTABLISH THE NATIONAL SEABED 05/29/17 ii, 12 , RESOURCES AUTHORITY OF THE FEDERATED STATES OF MICRONESIA, 280 PROVIDE FOR THE POWERS, DUTIES, AND RESPONSIBILITIES OF THE AUTHORITY, SET OUT THE STANDARDS OF SUSTAINABLE MANAGEMENT OF SEABED RESOURCES, REQUIRE THE PROMULGATION OF REGULATION GOVERNING PERMITS AND LICENSES RELEVANT TO MARINE SCIENTIFIC RESEARCH, PROSPECTING, EXPLORATION AND MINING ACTIVITIES, PRESCRIBE THE PENALTY FOR VIOLATION OF THIS ACT, AND FOR OTHER PURPOSES. (Harper By Request) C. B. No. TO AMEND SECTION 210 OF TITLE 55 OF THE CODE OF THE FEDERATED Viii, 20-42 STATES OF MICRONESIA (ANNOTATED), AS AMENDED, TO REQUIRE THAT ii, 12, FIFTY PERCENT (50%) OF ANY NON-EARMARKED FOREIGN FINANCIAL 280 ASSISTANCE BE CONTRIBUTED TO THE FSM TRUST FUND, WHERE IT IS TO BE DIVIDED EQUALLY AMONG THE SUB-ACCOUNTS TO THE NATIONAL GOVERNMENT AND EACH OF THE FOUR STATES, AND FOR OTHER PURPOSES. (Simina) C. B. No. TO PROPOSE AN AMENDMENT BY REFERENDUM TO ARTICLE II SECTION 1 OF Viii, 20-43 THE CONSTITUTION OF THE FEDERATED STATES OF MICRONESIA ii, 13, PERTAINING TO THE SUPREMACY OF THE FSM CONSTITUTION, AND FOR 81, OTHER PURPOSES. (Simina) 82, 280 C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 19-10, AS AMENDED BY PUBLIC LAWS Withdrawn & Viii, 20-44 NOS. 19-26, 19-42, 19-51, 19-56, 19-72, 19-78, 19-96, 19-132, 19-163 AND 20-03, BY Place 07/11/17 19, AMENDING SECTION 6 THEREOF, TO CHANGE THE LAPSE DATE OF FUNDS 27, PREVIOUSLY APPROPRIATED THEREIN, FOR THE PURPOSE OF FUNDING 69-70, PUBLIC PROJECTS AND SOCIAL PROGRAMS IN EACH OF THE STATES, AND 100, FOR OTHER PURPOSES. (Urusemal) 280 C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 17-68, AS AMENDED BY PUBLIC LAWS Withrdrawn & Viii, 20-45 NOS. 17-71, 17-81, 17-84, 17-89, 17-90, 18-03, 18-10, 18-13, 18-32, 18-46, 18-58, 18-87, Place 07/11/17 19, 18-95, 19-16, 19-47, 19-87, 19-98 AND 19-123, BY AMENDING SECTION 6 THEREOF, 27, FOR THE PURPOSE OF CHANGING THE LAPSE DATE OF CERTAIN FUNDS 69-72, PREVIOUSLY APPROPRIATED TO FUND PUBLIC PROJECTS AND SOCIAL 101, PROGRAMS IN EACH OF THE STATES, AND FOR OTHER PURPOSES. (Urusemal) 280 C. B. No. CD1: TO FURTHER AMEND PUBLIC LAW NO. 19-60, AS AMENDED BY PUBLIC Withdrawn & Viii, 20-46 LAWS NOS. 19-71, 19-80, 19-103, 19-148 AND 19-165, BY AMENDING SECTIONS 2 Placed 19, AND 6 THEREOF, TO CHANGE THE USE OF CERTAIN FUNDS PREVIOUSLY 07/11/17 28,

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APPROPRIATED THEREIN FOR YAP STATE AND THE LAPSE DATE OF CERTAIN 69-70, FUNDS PREVIOUSLY APPROPRIATED THEREIN, FOR THE PURPOSE OF 72-73, FUNDING ESSENTIAL GOVERNMENT FUNCTIONS, PROGRAMS, PROJECTS AND 101- ACTIVITIES IN EACH OF THE STATES, AND FOR OTHER PURPOSES. (Urusemal) 102, 280 C. B. No. CD1: TO FURTHER AMEND PUBLIC LAW NO. 19-64, AS AMENDED BY PUBLIC Withdrawn & Viii, 20-47 LAWS NOS. 19-81, 19-97, 19-120 AND 19-137, BY AMENDING SECTIONS 1AND 2 Placed on 20, THEREOF, TO CHANGE THE USE AND LAPSE DATE OF FUNDS PREVIOUSLY 07/11/17 28, APPROPRIATED THEREIN, FOR THE PURPOSE OF FUNDING PUBLIC PROJECTS 69-70, AND SOCIAL PROGRAMS IN THE STATES OF KOSRAE AND POHNPEI, TO 73-74, CORRECT TECHNICAL ERRORS, AND FOR OTHER PURPOSES. (Urusemal) 102- 105, 281 C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 18-117, AS AMENDED BY PUBLIC LAWS Withdrawn & Viii, 20-48 NOS. 18-120, 19-04, 19-08, 19-35, 19-49, 19-59, 19-76 AND 19-102, BY AMENDING Placed 20, SECTION 6 THEREOF, TO CHANGE THE LAPSE DATE OF FUNDS PREVIOUSLY 07/11/17 28, APPROPRIATED THEREIN, FOR THE PURPOSE OF FUNDING PUBLIC PROJECTS 69-70, AND SOCIAL PROGRAMS FOR THE PEOPLE OF THE STATES OF YAP, KOSRAE, 75-76, POHNPEI AND CHUUK, AND FOR OTHER PURPOSES. (Urusemal) 105, 281 C.B. No. CD1: TO APPROPRIATE THE SUM OF $4,200,000 FROM THE GENERAL FUND OF Withdrawn & viii, 20-49 THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR ENDING Placed 39, SEPTEMBER 30, 2017, FOR THE PURPOSE OF FUNDING PUBLIC PROJECTS AND 07/13/17 41, SOCIAL PROGRAMS FOR THE PEOPLE OF YAP, KOSRAE, POHNPEI AND CHUUK 45, STATES, AND FOR OTHER PURPOSES. (Gouland) 114, 120, 147, 281 C. B. No. CD1: TO FURTHER AMEND PUBLIC LAW NO. 18-11, ASW AMENDED BY PUBLIC Withdrawn & viii, 20-50 LAWS NOS. 18-44, 18-81, 19-33, 19-106, 19-128, 19-134, 19-138 AND 20-11, BY Placed 39, AMENDING SECTIONS 1 AND 2 THEREOF, TO CHANGE THE USE AND 07/10/17 42, ALLOTTEE OF FUNDS PREVIOUSLY APPROPRIATED FOR PUBLIC PROJECTS 43, AND SOCIAL PROGRAMS IN THE STATE OF POHNPEI, AND FOR OTHER 45, PURPOSES. (Neth) 58, 60, 64, 281 C. B. No. TO FURTHER AMEND PUBLIUC LAW NO. 18-99, AS AMENDED BY PUBLIC Withdrawn & ix, 39, 20-51 LAWS NOS. 18-106, 18-113, 18-121, 19-05, 19-34, 19-57, 19-74, 19-107 AND 20-18, BY Placed 42, AMENDING SECTION 6 THEREOF, TO CHANGE THE ALLOTTEE OF FUNDS 07/10/17 44-45, PREVIOUSLY APPROPRIATED THEREIN TO FUND PUBLIC PROJECTS AND 64, SOCIAL PROGRAMS FOR THE PEOPLE OF THE STATE OF POHNPEI, AND FOR 65, OTHER PURPOSES. (Neth) 69-70, 281 C. B. No. CD1: TO FURTHER AMEND PUBLIC LAW NO. 19-89, AS AMENDED BY PUBLIC Withdrawn ix, 39, 20-52 LAWS NOS. 19-94, 19-127, 19-151, 19-159 AND 20-06, BY AMENDING SECTIONS 4 & Placed 46, 49, AND 5 THEREOF, TO CHANGE THE USE OF FUNDS PREVIOUSLY 07/10/17 0-51, 65- APPROPRIATED THEREIN, FOR THE PURPOSE OF FUNDING PUBLIC PROJECTS 66, 94, AND SOCIAL PROGRAMS IN THE STATES OF POHNPE AND CHUUK, AND FOR 98, 281 OTHER PURPOSES. (Panuelo) C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 19-121, AS AMENDED BY PUBLIC LAWS Withdrawn & ix, 39, 20-53 NOS. 19-130, 19-142, 19-145, 19-158 AND 20-09 BY AMENDING SECTION 4 Placed on 46, THEREOF, TO CHANGE THE USE OF FUNDS PREVIOUSLY APPROPRIATED 07/10/17 51-52, THEREIN, FOR THE PURPOSE OF FUNDING PUBLIC PROJECTS AND SOCIAL 65,

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PROGRAMS FOR THE PEOPLE OF THE STATE OF POHNPEI, AND FOR OTHER 66, PURPOSES. (Panuelo) 98, 281 C. B. No TO CONVERT UNPAID BALANCES OF PRIOR LOANS FROM THE NATIONAL 39, 20-54 GOVERNMENT OF THE FEDERATED STATES OF MICRONESIA TO THE 46, NATIONAL FISHERIES CORPORATION FUNDED, PURSUANT TO PUBLIC LAW 281 NO. 6-69 AND PUBLIC LAW NO. 9-78, INTO GRANTS FOR THE PURPOSES FOR WHICH SUCH LOANS WERE PROVIDED, AND FOR OTHER PURPOSES. (Simina) C. B. No. CD1: TO FURTHER AMEND PUBLIC LAW NO. 19-124, AS AMENDED BY PUBLIC Withdrawn & ix, 57, 20-55 LAWS NOS. 19-133, 19-140, 19-150, 20-05 AND 20-15, BY AMENDING SECTION(S) 4 Placed 66-67, AND 6 THEREOF, TO CHANGE THE USE AND ALLOTTEE OF SOME FUNDS 07/11/17 99, PREVIOUSLY APPROPRIATED THEREIN, TO FUND PRIORITY 114, INFRASTRUCTURE PROJECTS AND OTHER PROGRAMS IN THE STATE OF 121, POHNPEI, AND FOR OTHER PURPOSES. (Perman) 281 C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 19-152, AS AMENDED BY PUBLIC LAWS Withdrawn & ix, 69- 20-56 NOA. 19-162 AND 20-08, BY AMENDING SECTION 2 THEREOF, TO CHANGE THE Placed 70, USE OF CERTAIN FUNDS PREVIOUSLY APPROPRIATED THEREIN, FOR THE 07/11/17 76-77, PURPOSE OF FUNDING PUBLIC PROJECTS FOR THE PEOPLE OF YAP STATE, 85, AND FOR OTHER PURPOSES. (Urusemal) 105- 106, 282 C. B. No. TO AMEND PUBLIC LAW NO. 9-118, AS AMENDED BY PUBLIC LAWS NOS. 19- 86, 20-57 125, 19-131, 19-135, 19-146 AND 19-160, BY AMENDING SECTION 11 THEREOF, TO 107, LIFT THE RESTRICTION ON RESTRICTION ON REPROGRAMMING BY THE 282 PRESIDENT OF THE FEDERATED STATES OF MICRONESIA OF CERTAIN PUBLIC FUNDS APPROPRIATED TO SUPPORT THE OPERATIONS OF THE EXECUTIVE BRANCH FOR THE FISCAL YEAR YEAR ENDING SEPTEMBER 30, 2017, AND FOR OTHER PURPOSES. (Harper By Request) C. B. No. TO FURTHER AMEND TITLE 2 OF THE CODE OF THE FEDERATED STATES OF With-drawn & 86, 20-58 MICRONESIA (ANNOTATED), AS AMENDED, BY AMENDING SECTION 203 AND Placed 89, 204 THEREOF, TO DISSOLVE THE OFFICEW OF ENVIRONMENT AND 07/12/17 91-92, EMERGENCY MANAGEMENT, CLIMATE CHANGE AND EMERGENCY 107, MANAGEMENT, TO EMPOWER THE PRESIDENT OF THE FEDERATED STATES 128, OF MICRONESIA TO TRANSITION THE FUNCTIONS OF THE DISSOLVED OFFICE, 282 AND FOR OTHER PURPOSES. (Urusemal By Request) C. B. No. TO FURTHER AMEND PUBLIC LAW NO. 18-70, AS AMENDED BY PUBLIC LAWS Withdrawn & ix, 86, 20-59 NOS. 18-98, 18-112, 18-122, 19-07, 19-24, 19-41, 19-52, 19-73, 19-82, 19-101, 19-114, 19- Placed 88, 90- 139, 20-07 AND 20-15 BY AMENDING SECTION 4 THEREOF, TO CHANGE THE 07/12/17 91, USE OF CERTAIN FUNDS PREVIOUSLY APPROPRIATED THEREIN, FOR THE 107, PURPOSE OF FUNDING PUBLIC PROJECTS AND SOCIAL PROGRAMS FOR THE 127, PEOPLE OF POHNPEI STATE, AND FOR OTHER PURPOSES. (Perman) 156, 282 C. B. No TO AMEND SECTIONS 1, 2, 8 AND 9 OF PUBLIC LAW NO. 19-118, AS AMENDED 112 & 20-60 BY PUBLIC LAWS NOS. 19-125, 19-131, 19-135, 19-146, 19-160 AND 20-14, IN 282 ORDER TO APPROPRIATE $6,270,448 OF ADDITIONAL FUNDS FROM THE GENERAL FUNDS OF THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2017, AND FOR OTHER PURPOSES. (Harper By Request) C. B. No TO FURTHER AMEND SECTION 404 OF TITLE 24 OF THE CODE OF THE 112 & 20-61 FEDERATED STATES OF MICRONESIA (ANNOTATED), AS AMENDED BY 282 PUBLIC LAW NO. 19-169, TO GRANT THE NATIONAL OCEANIC RESOURCE MANAGEMENT AUTHORITY (NORMA) THE DISCRETION TO EXEMPT A

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C.B. Page NO. SHORT TITLE as introduced SCR. No. No.

FISHING VESSEL FROM THE PROHIBITION OF FISHING IN NEIGHBORING HIGH SCHOOLS, AND FOR OTHER PURPOSES. (Harper By Request) C. B. No CD1: TO AMEND SECTIONS 1, 2, 3, 8 AND 9 OF PUBLIC LAW NO. 19-118, AS Withdrawn & ix, 20-62 AMENDED BY PUBLIC LAWS NOS. 19-125, 19-131, 19-135, 19-146, 19-160 AND 20- Placed 112, 14, IN ORDER TO APPROPRIATE $9,735,140 8,735,140 OF ADDITIONAL FUNDS 0713/17 114, FROM THE GENERAL FUND OF THE FEDERATED STATES OF MICRONESIA FOR 117, THE FISCAL YEAR ENDING SEPTEMBER 30, 2017, AND FOR OTHER PURPOSES. 119, (Figir) 141, 282 C. B. No TO AMEND SECTION 804 OF TITLE 53 OF THE CODE OF THE FEDERATED 139, 20-63 STATES OF MICRONESIA (ANNOTATED), TO ALLOW, BEGINNING JANUARY 01, 162 & 2018, FOR OLD AGE BENEFITS TO BE PAID IN FULL TO RECIPIENTS BETWEEN 282 THE AGES OF 60 AND 65, AND FOR OTHER PURPOSES. (Neth) C. B. No TO AMEND SECTION 9 OF PUBLIC LAW NO. 19-118, AS AMENDED BY PUBLIC 139, 20-64 LAWS NOS. 19-125, 19-131, 19-135, 19-146, 19-160, 20-01 AND 20-14, TO CLARIFY 162 & THE USE OF FUNDING FOR THE OPEN ACCESS ENTITY, AND FOR OTHER 282 PURPOSES. (Harper By Request) C. B. No TO FURTHER AMEND PUBLIC LAW NO. 15-32, AS AMENDED BY PUBLIC LAWS Withdrawn & ix, 20-65 NOS. 15-36, 15-44, 15-57, 15-63, 15-72, 15-78, 16-03, 16-11, 16-33, 16-46, 17-12, 17-21, Placed 139, 17-33, 17-40, 18-17, 18-67, 18-85, 18-104, 19-17, 19-100 AND 19-157, BY AMENDING 07/14/17 144, SECTION 1 THEREOF, FOR THE PURPOSE OF CHANGING THE USE OF CERTAIN 145, FUNDS PREVIOUSLY APPROPRIATED THEREIN TO FUND PUBLIC PROJECTS 162, AND SOCIAL PROGRAMS FOR THE PEOPLE OF CHUUK STATE, AND FOR 169, OTHER PURPOSES. (Simina) 283

C. B. No CD1: TO FURTHER AMEND SECTION 1 OF PUBLIC LAW NO. 16-18, AS Withdrawn & ix, 20-66 AMENDED BY PUBLIC LAWS NOS. 16-24, 16-32, 16-39, 16-45, 16-54, 16-67, 17-04, Placed 140, 17-14, 17-26, 17-39, 17-65, 18-27, 18-47, 18-80, 19-13 AND 19-108 TO CHANGE THE 07/14/17 144, USE OF CERTAIN FUNDS PREVIOUSLY APPROPRIATED THEREIN TO FUND 145, PUBLIC PROJECT AND SOCIAL PROGRAMS IN THE STATE OF CHUUK, AND 163, FOR OTHER PURPOSES. (Simina) 172, 283 C. B. No TO FURTHER AMEND PUBLIC LAW NO. 15-80, AS AMENDED BY PUBLIC LAWS Withdrawn & ix, 20-67 NOS. 16-04, 17-53, 18-37, 18-66, 19-14, 19-105, AND 19-161, BY AMENDING Placed 140, SECTION 1 THEREOF, FOR THE PURPOSE OF CHANGING THE USE OF CERTAIN 07/14/17 144, FUNDS PREVIOUSLY APPROPRIATED THEREIN, FOR PUBLIC PROJECTS AND 146, SOCIAL PROGRAMS IN THE STATE OF CHUUK, AND FOR OTHER PURPOSES. 163, (Simina) 174 283 C. B. No TO FURTHER AMEND TITLE 52 OF THE CODE OF THE FEDERATED STATES OF 175, 20-68 MICRONESIA (ANNOTATED), AS AMENDED, BY INSERTING A NEW SECTION 283 411 FOR THE PURPOSE OF ENSURING THAT NO EMPLOYEE PARTICIPATING IN THE FSM HEALTH CARE PLAN WILL BE REQUIRED TO PARTICIPATE IN ANY OTHER HEALTH INSURANCE PLAN, AND FOR OTHER PURPOSES. (Perman)

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INDEX CONGRESSIONAL RESOLUTIONS Twentieth Congress of the Federated States of Micronesia [FIRST SPECIAL SESSION- 2017

C.R. NO. SHORT TITLE as introduced SCR. No. Page No. C.R No. SETTING THE CEILING OF THE TOTAL FUNDS ESTIMATED TO BE x, 40, 46, 20-17 AVAILABLE FOR APPROPRIATION FROM THE GENERAL FUND OF w/placed 115 THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR 07/13/17 ENDING SEPTEMBER 30, 2017. (Figir) C. R. No. OPIOID STATE TARGETED RESPONSE PROJECT, INCLUDING ALL 40, 46 20-18 THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. APPROVING AND ACCEPTING A U.S. AGENCY FOR INTERNATIONAL SCR. NO. x, 80, 107, 20-19 DEVELOPMENT GRANT IN THE AMOUNT OF $240,000, TO FUND THE 20-15 160 IMPLEMENTATION OF THE INSTITUTIONAL STRNGHTHENING IN (SCOCC) PICs TO ADOPT TO CLIMATE CHANGE PROJECT, INCLUDING ALL 07/14/17 THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. APPROVING AND ACCEPTING A GRANT IN THE AMOUNT OF Withdrawn & x, 112, 115, 20-20 21,270,000 YEN FROM THE GOVERNMENT OF JAPAN, TO FUND THE Placed 116, 130 GOODS AND SERVICES PROGRAM FOR THE FISCAL YEAR 2018 TO (07/13/17 ASSIST THE FISHERIES DEVELOPMENT PROGRAM OF THE STATE OF POHNPEI, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. APPROVING AND ACCEPTING GRANTS TO THE FEDERATED STATES 140, 163 20-21 OF MICRONESIA IN THE TOTAL AMOUNT OF $8,300,000 FROM THE ASIAN DEVELOPMENT BANK, TO FUND THE IMPROVING THE QUALITY OF BASIC EDUCATION PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE GRANTS. (Harper By Urusemal) C. R No. TO CONFIRM THE NOMINATION OF MRS. SIHNA NETH LAWRENCE 140, 163 20-22 TO SERVE AS A MEMBER OF THE JOINT TRUST FUND COMMITTEE, REPRESENTING THE FEDERATED STATES OF MICRONESIA, PURSUANT TO SECTIONS 215 AND 216 OF THE COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE UNITED STATES AND THE FEDERATED STATES OF MICRONESIA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA. (Harper By Request) C.R. No. REQUESTING THE PRESIDENT OF THE FEDERATED STATES OF Withdrawn & x, 161, 167, 20-23 MICRONESIA TO APPOINT A TASK FORCE ON THE ISSUES RAISED Placed 176 BY THE UNIFORM GUIDANCE PERTAINING TO THE U.S. FINANCIAL 07/14/17 REGULATIONS. (Simina) C. R. No. APPROVING AND ACCEPTING A GRANT IN THE AMOUNT OF 167, 176 20-24 $417.164 FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, CENTERS FOR DISEASE CONTROL AND PREVENTION, TO FUND FSM PUBLIC HEALTH AND HEALTHCARE EMERGENCY PREPAREDNESS PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request)

300

C.R. NO. SHORT TITLE as introduced SCR. No. Page No. C.R No. 20- SETTING THE CEILING OF THE TOTAL FUNDS ESTIMATED TO BE x, 40, 46, 17 AVAILABLE FOR APPROPRIATION FROM THE GENERAL FUND OF w/placed 115 THE FEDERATED STATES OF MICRONESIA FOR THE FISCAL YEAR 07/13/17 ENDING SEPTEMBER 30, 2017. (Figir) C. R. No. OPIOID STATE TARGETED RESPONSE PROJECT, INCLUDING ALL 40, 46 20-18 THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. 20- APPROVING AND ACCEPTING A U.S. AGENCY FOR INTERNATIONAL SCR. NO. x, 80, 107, 19 DEVELOPMENT GRANT IN THE AMOUNT OF $240,000, TO FUND THE 20-15 160 IMPLEMENTATION OF THE INSTITUTIONAL STRNGHTHENING IN (SCOCC) PICs TO ADOPT TO CLIMATE CHANGE PROJECT, INCLUDING ALL 07/14/17 THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. 20- APPROVING AND ACCEPTING A GRANT IN THE AMOUNT OF Withdrawn & x, 112, 115, 20 21,270,000 YEN FROM THE GOVERNMENT OF JAPAN, TO FUND THE Placed 116, 130 GOODS AND SERVICES PROGRAM FOR THE FISCAL YEAR 2018 TO (07/13/17 ASSIST THE FISHERIES DEVELOPMENT PROGRAM OF THE STATE OF POHNPEI, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request) C. R No. 20- APPROVING AND ACCEPTING GRANTS TO THE FEDERATED STATES 140, 163 21 OF MICRONESIA IN THE TOTAL AMOUNT OF $8,300,000 FROM THE ASIAN DEVELOPMENT BANK, TO FUND THE IMPROVING THE QUALITY OF BASIC EDUCATION PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE GRANTS. (Harper By Urusemal) C. R No. 20- TO CONFIRM THE NOMINATION OF MRS. SIHNA NETH LAWRENCE 140, 163 22 TO SERVE AS A MEMBER OF THE JOINT TRUST FUND COMMITTEE, REPRESENTING THE FEDERATED STATES OF MICRONESIA, PURSUANT TO SECTIONS 215 AND 216 OF THE COMPACT OF FREE ASSOCIATION, AS AMENDED, BETWEEN THE UNITED STATES AND THE FEDERATED STATES OF MICRONESIA AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA. (Harper By Request) C.R. No. 20- REQUESTING THE PRESIDENT OF THE FEDERATED STATES OF Withdrawn & x, 161, 167, 23 MICRONESIA TO APPOINT A TASK FORCE ON THE ISSUES RAISED Placed 176 BY THE UNIFORM GUIDANCE PERTAINING TO THE U.S. FINANCIAL 07/14/17 REGULATIONS. (Simina) C. R. No. APPROVING AND ACCEPTING A GRANT IN THE AMOUNT OF 167, 176 20-24 $417.164 FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, CENTERS FOR DISEASE CONTROL AND PREVENTION, TO FUND FSM PUBLIC HEALTH AND HEALTHCARE EMERGENCY PREPAREDNESS PROJECT, INCLUDING ALL THE TERMS AND CONDITIONS OF THE ASSISTANCE. (Harper By Request)

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