Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698144374608.pdf (Micronesia, Federated States of)
SIXTEENTH CONGRESS OF THE FEDERATED STATES OF MICRONESIA FIRST REGULAR SESSION, 2009 C.B.

NO.
NO.

16-06 A BILL FOR AN ACT To amend title 209 and 210 of title 55 of the code of the Federated States of Micronesia to conform to the Constitution of the Federated States of Micronesia, the treaty obligations of the Government of the Federated States of Micronesia under the terms of the Compact of Free Association, as amended, and related agreements, and to the current organizational structure of the Executive Branch; and for other purposes.
BE IT ENACTED BY THE CONGRESS OF THE FEDERATED STATES OF MICRONESIA: 1 Section 1.

Section 209 of title 55 of the code of the 2 Federated States of Micronesia is hereby amended to read as 3 follows: “Section 209.

Deposits to the General Fund.
[(1)] Unless otherwise provided by this chapter or other law, the following shall be deposited in the General Fund: [(a)] all local revenues [public moneys] raised, collected or received by the Federated States of Micronesia National Government pursuant to laws of the Federated States of Micronesia imposing taxes on income, or other taxes, duties, or tariffs based on imports, or other revenues collected based on fines, fees, licenses, interests, rents, or other collections of the Federated States of Micronesia.
[made specifically applicable within the jurisdiction of the Federated States of Micronesia; (b) all funds allotted to the Federated CBL 16-4 C.B.

NO.
NO.

16-06 States of Micronesia National Government from the Compact Financial Assistance Fund; and (c) all other funds received by the Federated States of Micronesia National Government from the United States Government and designated for the Federated States of Micronesia National Government.

(2) Compact of Free Association financial assistance shall be accounted for in accordance with financial accounting and reporting requirements of the Compact.
(3) All balances of the United States Grant Special Fund are hereby transferred to, and deposited in, the General Lund of the Federated States of Micronesia”] Section 2.

Section 210 of title 55 of the code of the 15 Federated States of Micronesia as amended by Public Laws Nos.

6-22 16 and 9-74, is hereby amended to read as follows: “Section 210.

Foreign Assistance Fund.

(1) Definitions.


(a) “Agreement” shall refer to any arrangement, understanding, covenant, compact, transaction or other agreement, in any form, entered into by and between an official of the National Government, or the National Government’s designee, and a foreign governmental entity, for the receipt or acceptance of financial assistance 2 of 6 C.B.

NO.
NO.

16-06 or aid, on behalf of any National or State governmental entity.

(b) “Foreign financial assistance’ shall refer to currency, money, accounts or notes receivable, offered as aid or assistance to the National Government of the Federated States of Micronesia, [other than foreign aid or assistance received from the United States of America pursuant to, or authorized by, the provisions of the Compact of Free Association between the Federated States of Micronesia and the United States of America].
(c) ”Foreign in-kind assistance” shall refer to any and all foreign assistance in the form of goods, services, or other modes of assistance not covered under subsection (1)(b) hereof.

(2) Approval by Congress.

(a) The President shall submit any agreement for the acceptance or receipt of foreign financial assistance to the Congress no later than the first regular or special session of Congress convened immediately subsequent to the execution of such agreement, for approval by resolution.
([a]b) No such agreement shall be valid, and no funds may be received pursuant to such agreement, unless and until Congress approves the agreement by 3 of 6 C.B.

NO.

16-06 resolution.

([b]c) Should the Congress not approve such agreement by resolution before the adjournment of the first regular session following the President’s submission of the agreement to Congress, that agreement shall be deemed disapproved.
(3) Foreign Assistance Fund.

There is hereby established within the National Treasury of the Federated States of Micronesia a Foreign Assistance Fund which shall initially consist of all unobligated balances of foreign assistance funds from the preceding fiscal year, and all foreign assistance funds designated for the National Government and made available beginning October 1, 1996.
Thereafter, the Department of Finance shall receive, maintain a complete record of, and where applicable, deposit all foreign financial assistance as defined in subsection (1) of this section into the Fund, pursuant to the Financial Management Act of 1997.

(a) The President or the President’s designee shall notify the Congress of the receipt of foreign financial assistance, the amount thereof in U.S. dollars, and, where applicable, the deposit of such assistance into the Fund, no later that the 4 of 6 C.B.
NO.

16-06 first session of Congress, be it regular or special, convened subsequent to such receipt.
(b) Where the foreign financial assistance received is denominated in the form of goods or services, the President or the President’s designee shall notify the Congress of the value thereof in U.S. dollars, and the destination where such goods have been delivered, or location where such services have been rendered, no later than the first session of the Congress convened subsequent to such receipt.

(4) Development of Fund: ([a]) Duties of the Department of Finance.
The Division of Investment Management of the Department of Finance shall [upon approval of the President and in cooperation with the Department of Foreign, actively seek foreign assistance funding,] foster productive use of foreign assistance, and produce reports on the acquisition, use, expenditure of, and fiscal obligations attendant upon, foreign assistance available to or received by the National Government of the Federated States of Micronesia.
(b) Upon approval of the President, the duties of the Office of Statistics, Budget and 5 of 6 C.B.

NO.

16-06 Economic Management, Overseas Development Assistance and Compact Management include actively seeking foreign assistance funding in coordination with the Department of Foreign Affairs.

(5) Reports.
No later than April 1 of each year, the President shall submit to the Congress a report on the status of the Foreign Assistance Fund, which report shall include: (a) a complete and accurate accounting of all foreign financial assistance received; (b) a complete and accurate record of the manner in which the foreign financial assistance was distributed as among and between the States and the National Government, and (c) whether such distribution comports with the provisions of article XII, section 1(b) of the Constitution.” Section 3.
This act shall become law upon approval by the 19 President of the Federated States of Micronesia or upon its 20 becoming law without such approval.

21 22 Date: 5/12/09 Introduced by: /s/ Joe N. Suka 23 24 Joe N. Suka (by request) 6 of 6