Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698750058561.pdf (Micronesia, Federated States of)
EIGHTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIFTH REGULAR SESSION, 2014 C.B.

NO.

18-212 A BILL FOR AN ACT To amend the Code of the Federated States of Micronesia by creating a new title 13 thereof, for the purpose of establishing a Register of Financial Interests for public officials and candidates for public office, and for other purposes.

BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: Section 1.
The Code of the Federated States of Micronesia is hereby amended by creating a new title 13 entitled: “Public Officials – Register of Financial Interests”.

Section 2.

Title 13 of the Code of the Federated States of Micronesia is hereby amended by creating a new 6 chapter 1 entitled “General Provisions”.

7 Section 3.

Title 13 of the Code of the Federated States of Micronesia is hereby amended by adding a new section 101 of chapter 1 to read as follows: “Section 101.
Definitions.

For the purposes of this title, the following terms shall be given the meanings described herein: (1) 'Business' includes every occupation, profession, sole proprietorship, partnership, corporation, or any other association that engages in business or commerce within the Federated States of Micronesia.

(2) 'Candidate' means a person who files a nomination paper under section 202 of title 9 of the Code of the CBL 18-231 C.B.

NO.
NO.

18-212 Federated States of Micronesia for an election to the Congress of the Federated States of Micronesia.

(3) 'Contribution' means any loan, gift, donation, payment, or anything of value, including personal or professional services, provided other than for compensation at full market value.
The term 'contribution' does not include: (a) Services of the sort commonly performed by volunteers in election campaigns; (b) Any contribution which is returned to the giver within five business days of being received; (c) Ordinary home hospitality; (d) Any news item, report or editorial that is published or broadcast by any news medium that is in the business of being a news medium and is not controlled by the candidate or a candidate’s committee; or (e) Any sign or poster displayed on a person’s own property.
(4) 'Immediate family' means, with reference to a natural person, that person’s spouse, and dependent children living in the household of the person.

(5) 'Public official' includes all members of the Congress of the Federated States of Micronesia, the President and Vice President, the Chief Justice and Associate Justices of the Supreme Court, the Secretaries 2 of 12 C.B.

NO.
NO.

18-212 of all Executive Departments, the Assistant Secretaries of all Executive Departments, the Directors of all Executive Offices, the Public Auditor, and all members of the Board of Directors of the Development Bank of the Federated States of Micronesia.

(6) ‘Remuneration’ means any monetary or in-kind compensation, including salaries, fees, and any taxable expenses, allowances, or benefits.
(7) ‘Reporting person’ means any public official or candidate required to file a statement of financial interest pursuant to this title.

(8) ‘Secretary’ means the Secretary of the Department of Justice of the Federated States of Micronesia.

(9) ‘Securities’ includes bonds, mortgages, notes, obligations, warrants, and stocks of any class, investment interests in limited or general partnerships, and certificates of deposit.” Section 4.
Title 13 of the Code of the Federated States of 19 Micronesia is hereby further amended by adding a new section 102 20 of chapter 1 to read as follows: “Section 102.

Forms and rules.

The Secretary shall create such forms and issue such rules, not inconsistent with the provisions of this title, as are necessary and appropriate to accomplish the purposes of this title.” 3 of 12 C.B.

NO.

18-212 1 Section 5.


Title 13 of the Code of the Federated States of 2 Micronesia is hereby further amended by adding a new section 103 3 of chapter 1 to read as follows: “Section 103.

Enforcement.

The Secretary shall have the authority to issue orders requiring compliance with the provisions of this title and to seek, in the National Courts, temporary and permanent restraining orders against any person who is in violation of this title.” 10 Section 6.
Title 13 of the Code of the Federated States of 11 Micronesia is hereby further amended by creating a new chapter 2 12 entitled “Public Official and Candidate Disclosures”.

13 Section 7.

Title 13 of the Code of the Federated States 14 of Micronesia is hereby further amended by adding a new section 15 201 of chapter 2 to read as follows: “Section 201.

Statement of financial interests.


(1) Every public official shall, after January 1 and before April 15 of each year, file with the Secretary on a form created for the purpose, a statement of financial interests for the preceding calendar year.
(2) Every candidate shall, within five days of filing a nomination paper, file with the Secretary on a form created for the purpose, a statement of financial interests covering the period from January 1 of the preceding calendar year to the date of filing his or her 4 of 12 C.B.

NO.

18-212 nomination paper.
Every candidate shall file a second statement of financial interests no later than fifteen days prior to the election on a form created for the purpose, and covering the period from the date of filing his or her nomination paper to twenty days prior to the election.
(3) Every person who becomes a public official by being appointed to fill a vacant position shall, within thirty days of being appointed, file with the Secretary on a form created for the purpose, a statement of financial interests covering the period from January 1 of the preceding calendar year to the date of appointment.

(4) Each statement of financial interests shall include a certification, signed by the reporting person, that the information contained therein is ‘complete and correct’.” Section 8.
Title 13 of the Code of the Federated States of 18 Micronesia is hereby further amended by adding a new section 202 19 of chapter 2 to read as follows: “Section 202.

Contents of statement of financial interests.

The statement of financial interests required by section 201 of this title shall include, with respect to each reporting person and his or her immediate family, the following information: 5 of 12 C.B.

NO.

18-212 (1) Remunerated positions.


Any remunerated occupation, employment, office, trusteeship, partnership, directorship, or position of any nature held by the reporting person or a member of his or her immediate family with any business, organization, or government entity other than the Government of the Federated States of Micronesia.
The reporting person shall disclose the name and principal address of the entity, a general description of the nature of the entity and its activity, the position held, and the approximate number of hours spent on the position.

(2) Business ownership.

Any ownership interest in excess of $1,000 in a business held by the reporting person or a member of his or her immediate family, where such interest represents at least ten percent of the business’s value.
The reporting person shall disclose the name and principal address of the business, a general description of the nature of the business and its activity, and the percentage interest held in the business.

(3) Clients.

Any person, business, organization, or government entity to whom the reporting person or a member of his or her immediate family provided services with a value in excess of $1,000 in the course of the reporting period.
The reporting person shall disclose the 6 of 12 C.B.

NO.

18-212 name and address of the client and the nature of the services provided.

(4) Real property interests.


Any holdings of real property, other than the reporting person’s primary residence, in which the reporting person or a member of his or her immediate family has an interest with a current market value in excess of $10,000, either personally or by virtue of an ownership interest in a business reported pursuant to subsection 2.

The reporting person shall disclose the location and nature of the property, and the percentage interest held in the property.

(5) Investment interests.


Any business not reportable pursuant to subsection (2) in which the reporting person or a member of his or her immediate family owns securities with a value in excess of $1,000.

The reporting person shall disclose the name and principal address of the business, and a general description of the nature of the business and its activity.

(6) Indebtedness.
(6) Indebtedness.

Any loans or credit arrangements for an amount in excess of $1,000 entered into by the reporting person or a member of his or her immediate family or by a business reported pursuant to subsection (2), but excluding.

(a) liabilities to relatives; (b) credit card balances; and 7 of 12 C.B.

NO.
NO.

18-212 (c) any loan issued in the ordinary course of business by a financial institution to finance: (i) educational costs; (ii) the cost of home purchase or improvements for a primary or secondary residence; or (iii) purchase of a personally owned motor vehicle, household furniture or appliances.

The reporting person shall disclose the name and address of the lender and the purpose of the loan or line of credit.

(7) Financial or material support.


Any contribution from a single source with a cumulative value in excess of $250 in the course of the reporting period, which was solicited, encouraged, or received by or on behalf of the reporting person or a member of his or her immediate family and was in any way related to the reporting person’s candidacy in an election or to his or her public office.
The reporting person shall disclose the name and address of the donor and, if not a natural person, the nature of the donating entity; the reporting person shall also disclose whether the donation was cash or in-kind and, if in-kind, the nature of the donation.

(8) Overseas visits.

Any overseas visit made by the reporting person or a member of his or her immediate family which in any way arose out of the reporting 8 of 12 C.B.

NO.
NO.

18-212 person’s candidacy or public office, where the cost of such visit was not wholly borne by the reporting person, by the Government of the Federated States of Micronesia, or by a combination thereof; the reporting person shall disclose the destination and purpose of the trip, the elements of the trip donated or funded by the donation, the name and address of the donor and, if not a natural person, the nature of the donating entity.
(9) Concessionary transactions.
Any transaction with a value in excess of $250, the terms of which differed substantially from standard prevailing commercial terms to the benefit of the reporting person or a member of his or her immediate family, either personally or with respect to an interest reported pursuant to subsection (1) or (2); the reporting person shall, disclose the nature of the transaction, the reason for the favorable terms, the names and addresses of the parties to the transaction and, if not a natural person, the nature of the entity granting the favorable terms.” Section 9.
Title 13 of the Code of the Federated States of 21 Micronesia is hereby further amended by adding a new section 203 22 of chapter 2 to read as follows: 23 24 25 “Section 203.

Guidance as to disclosure of interests.

For the purpose of determining whether any interest must be reported under section 202 of this chapter, the 9 of 12 C.B.

NO.

18-212 interests of the reporting person and members of his or her immediate family shall be aggregated.

Section 10.
Section 10.

Title 13 of the Code of the Federated States of Micronesia is hereby further amended by adding a new section 204 of chapter 2 read as follows “Section 204.

Voluntary disclosures.


Although nothing in this chapter should be interpreted as requiring the disclosure of dollar amounts, and no penalty shall be incurred for not making such a disclosure, the reporting party may voluntarily disclose that any amount was “less than $1,000”, “at least $1,000, but less than $5,000”, “at least $5,000, but less than $10,000”, “at least $10,000, but less than $25,000”, “at least $25,000, but less than $100,000”, or “more than $100,000”.
Such voluntary disclosure is subject to the same penalties for incorrect reporting as the information required to be disclosed by this chapter.” Section 11.

Title 13 of the Code of the Federated States of 19 Micronesia is hereby further amended by adding a new section 205 20 of chapter 2 to read as follows: “Section 205.

Publication of Register of Financial Interests.


The Secretary shall: (1) Publish a Register of Financial Interests compiling the individual statements of financial interests of public officials no later than June 1 10 of 12 C.B.

NO.
18-212 of each year; (2) Publish a Register of Financial Interests of Candidates compiling the individual statements of financial interests of candidates no later than one hundred days prior to a general election and no later than thirty days prior to a special election, and a Supplemental Register of Financial Interests of Candidates no later than ten days prior to a general or special election; (3) Ensure that such Registers of Financial Interests are made readily available to citizens of the Federated States of Micronesia, both online and in printed form.” 14 Section 12.
Title 13 of the Code of the Federated States of 15 Micronesia is hereby further amended by adding a new section 206 16 of chapter 2 to read as follows: “Section 206.

Civil and criminal penalties.

(1) Any reporting person who fails to file a properly completed statement of financial interests within the time prescribed by section 201 of this title, shall be subject to a civil penalty of $100 for each day that such delinquency continues.
(2) Any reporting person who files a Statement of financial interests that is incorrect or lacks any information required by section 201 of this title shall be 11 of 12 C.B.

NO.

18-212 subject to a civil penalty in an amount not to exceed $1,000 per violation.
(3) Any reporting person who, with an intent to deceive or to avoid any reporting requirement under this section, (a) files a Statement of Financial Interests that is incorrect or lacks any information required by section 201 of this title, (b) transfers any compensation, gift, debt or ownership interest to another person, or (c) causes any compensation, gift, debt or ownership interest to appear, inaccurately, to be the asset or liability of another person, shall be guilty of a crime punishable by a fine not to exceed $10,000 per violation, imprisonment for a period not to exceed six months per violation, or both.” Section 13.
This act shall become law upon approval by the 16 President of the Federated States of Micronesia or upon it 17 becoming law without such approval.

18 19 Date: 9/17/14 Introduced by: /s/ Peter M. Christian Peter M. Christian of 12