Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698747635937.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

21-85 RE: C.B.

No.

21-336/ W&M SUBJECT: TO PERMIT EMPLOYERS TO DEDUCT CONTRIBUTIONS MADE TO THEIR EMPLOYEES MiCARE HEALTH INSURANCE PLAN FROM THEIR GROSS REVENUE TAX.

MARCH 24, 2021 The Honorable Wesley W. Simina Speaker, Twenty-first Congress Federated States of Micronesia Tenth Special Session, 2021 Dear Speaker, Your Committee on Ways & Means, to which was referred Congressional Bill No.
21-336, entitled: “TO FURTHER AMEND SECTION 112 OF TITLE 54 OF THE CODE OF THE FEDERATED STATES OF MICRONESIA (ANNOTATED), AS AMENDED BY PUBLIC LAW NO.

18-118, TO PERMIT CERTAIN DEDUCTIONS FOR PURPOSES OF THE GROSS REVENUE TAX, AND FOR OTHER PURPOSES.”, begs leave to report as follows: Your Committee received Congress Bill No.

21-336 that proposes to permit employers to deduct contributions made to their employees MiCare health insurance plan from their gross revenue tax.
A public hearing was held on the bill, your Committee solicited comments from the four states, and the Committee’s recommendations can be found below.

SCRL 21-103/W&M COMMITTEE STANDING COMMITTEE REPORT NO.

21-85 RE: C.B.

No.

21-336/ W&M SUBJECT: TO PERMIT EMPLOYERS TO DEDUCT CONTRIBUTIONS MADE TO THEIR EMPLOYEES MiCARE HEALTH INSURANCE PLAN FROM THEIR GROSS REVENUE TAX.

MARCH 24, 2021 PUBLIC HEARING Your Committee held a hearing on January 25, 2021, on Congressional Bill No.

21-336.
21-336.

Witnesses at the hearing included representatives from MiCare; a representative from the Department of Finance and Administration and a representative from the Department of Justice.

Chairman Figir opened the hearing by thanking the witnesses and committee members for attending.

He then yielded the floor to the representative from MiCare to comment on the proposed legislation.

The representative from MiCare was in agreement with the intent of the bill and supported its passage.
The representative from the Department of Finance and Administration testified that the deductions would be a small part of the business expense but could encourage employers to contribute to their employee’s health care plan.

RESPONSE FROM THE STATES Your Committee sent letters to all four states legislatures and governor’s offices.

Your Committee received a response from the Yap State Legislature.

The Yap State Legislature stated in their correspondence that they supported the passage of the bill.
CONCLUSION Your Committee has carefully reviewed Congressional Bill No.

21-336.

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

No.

21-336, 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.

21-85 RE: C.B.

No.

21-336/ W&M SUBJECT: TO PERMIT EMPLOYERS TO DEDUCT CONTRIBUTIONS MADE TO THEIR EMPLOYEES MiCARE HEALTH INSURANCE PLAN FROM THEIR GROSS REVENUE TAX.
MARCH 24, 2021 Respectfully submitted, /s/ Isaac V. Figir Isaac V. Figir, chairman Victor V. Gouland, member /s/ Dion G. Neth Dion G. Neth, member Ferny S. Perman, member /s/ Ferny S. Perman ____________________________ __________________________ Robson U. Romolow, member Joseph J. Urusemal, member /s/ Paliknoa K. Welly Paliknoa K. Welly, member - 3 -