Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698746606626.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

13-152 RE: C.B.

NO.

13-118/W&M SUBJECT: TRANSFER OF TRUST FUNDS SEPTEMBER 1, 2004 The Honorable Peter M. Christian Speaker, Thirteenth Congress Federated States of Micronesia Fifth Special Session, 2004 Dear Mr. Speaker: Your Committee on Ways & Means to which was referred C.B.

No.

13-118 entitled: "A BILL FOR AN ACT TO FURTHER AMEND TITLE 55 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA, AS AMENDED, BY AMENDING CHAPTER 12 THEREOF, AND FOR OTHER PURPOSES.
", begs leave to report as follows: The intent and purpose of the bill are expressed in its title.

C.B.

No.

13-118 was transmitted by Presidential Communication No.

13- 165.

The purpose of the bill is to enact a new section 1222 of title 55 of the FSM Code to enable the President to transfer funds currently being held in an FSM Trust Fund into the trust fund created under the amended Compact.
The Compact of Free Association with the United States, as amended, (“Compact II”) provides for the creation of a trust fund (“the Compact Trust Fund”) for the benefit of the FSM, into which the United States will make contributions of more than $440 million over the 20-year term of Compact II.

The obligation of the United States to make those contributions is contingent upon the FSM’s contributing at least $30 million into the Compact Trust Fund by September 30, 2004.
By agreement with the states, the National Government is to contribute approximately $8 million of that $30 million total.

The President reports, in Presidential Communication No.

13-165, that $8,015,000, previously appropriated for the purpose of making the STANDING COMMITTEE REPORT NO.

13-152 RE: C.B.

NO.


13-118/W&M SUBJECT: TRANSFER OF TRUST FUNDS SEPTEMBER 1, 2004 National Government’s contribution to the Compact Trust Fund, are currently being held by the FSM in a trust fund (“the FSM Trust Fund”) created under chapter 12 of title 55 of the FSM Code.
Under the current provisions of that chapter, transfers between sub- accounts of the FSM Trust Fund and transfers out of that fund can be made only by a Board of Trustees, whose members are to be nominated by the President, subject to the advice and consent of Congress.

At present, there is no such Board of Trustees.

Although nominations were submitted during the Twelfth Congress, no action was taken on those nominations.

The nominations have not been resubmitted during the Thirteenth Congress.
Thus, under present law, there is no one with the authority to transfer funds from the FSM Trust Fund to the Compact Trust Fund.

C.B.

No.

13-118 would amend existing law to authorize the President, as allottee of the Funds deposited in the FSM Trust Fund, to act in the absence of a Board of Trustees.

Further, under existing law, the circumstances under which funds can be withdrawn from the FSM Trust Fund are narrowly restricted and do not explicitly include a transfer of funds to the Compact Trust Fund.
C.B.

No.

13-118 would specifically authorize such a transfer.

Your committee is of the opinion that it is strongly in the national interest that the funds currently being held in the FSM Trust Fund be transferred to the Compact Trust Fund before September 30, 2004.

We have considered C.B.

No.

13-118 and have concluded that it is an appropriate measure for making that transfer possible.

Thus, your Committee on Ways and Means is in accord with the intent and purpose of C.B.

No.
No.

13-118 and recommends its passage on First Reading, and that it be placed on the Calendar for Second and Final Reading.

-2- STANDING COMMITTEE REPORT NO.

13-152 RE: C.B.

NO.


13-118/W&M SUBJECT: TRANSFER OF TRUST FUNDS SEPTEMBER 1, 2004 Respectfully submitted, /s/ Sabino S. Asor Sabino S. Asor, chairman /s/ Roosevelt D. Kansou Roosevelt D. Kansou, vice chairman /s/ Henry C. Asugar Henry C. Asugar, member Peter M. Christian, member Peter M. Christian /s/ Isaac V. Figir Isaac V. Figir, member Dohsis Halbert, member Claude H. Phillip, member -3-