DRAFT CSC, Title 17.  Economic Development
Northern Namoneas
Economic Development Authority

1201.  Establishment.
1202.  Area of service.
1203.  Purpose of Authority.
1204.  Board of Directors.
1205.  Powers of the Authority.
1206.  Suits and legal representatives.
1207.  Management.
1208.  Annual budget.
1209.  Executive Director.
1210.  Budget and Finance Officer.
1211.  Accounts and records.
1212.  Taxation of the Authority.
1213.  Personnel administration.
1214.  Notification to Municipal Governments regarding projects.
1215.  Land acquisition and relocation assistance.

      120l.  Establishment.
     The Northern Namoneas Economic Development Authority is hereby established as a public corporation under the laws of the State of Truk Chuuk and the Federated States of Micronesia.  The principal office of the Authority shall be at a location determined by the Board.

Source:  CSL 5-25, 1.

Editor's note:  CSL 5-25 that created this Chapter was signed into law by the Governor on November 30, 1982.

      1202.  Area of service.
     The Authority is hereby established to serve the following municipalities within the State of Truk Chuuk:

     (1)  Moen including Pis-Moen; and

     (2)  Fono.

Source:  CSL 5-25, 2.

      1203.  Purpose of Authority.
     The Authority shall identify the development needs of its area of service; and shall promote, by its own activity and that of others, economic development in coordination and cooperation with State and National Government, and private and cooperative enterprises.

Source:  CSL 5-25, 3.

      1204.  Board of Directors.

     (1)  Establishment.  There shall be a Board of Directors of the Northern Namoneas Economic Development Authority which shall have general management and control over the Authority.

     (2)  Composition.

     (a)  The Board shall be composed of 14 fourteen members as follows:

     (i)  Five members to be appointed by the sectional leaders in each of the following political divisions of Moen Weno Municipality, subject to the advice and consent of the Moen Weno Municipal Council:

     1. (A)  Ichkumi (Iras, Mechitiw, Tunnuk, Pis-Moen);

     2. (B)  Nikumi (Nepukos, Sefin);

     3. (C)  Sangkumi (Neauo, Wichap, Epinup);

     4. (D)  Yongkumi (Penia, Peniesene); and

     5. (E)  Kokumi (Nemwan, Eor, Winipis, Nukanap);

     (ii)  All the State Senators and three of the Representatives from the area served by the Authority as provided in the Charter of the Truk State Government Constitution of the State of Chuuk to serve as non-voting members;

     (iii)  Two members shall be appointed by the Fono Magistrate, with the advice and consent of the Fono Municipal Council;

     (iv)  One member to be appointed by the Moen Weno Municipal Council from among its members; and

     (v)  The Mayor of Moen Weno Municipality.

     (3)  Compensation.  There shall be no compensation for members of the Board during its first initial year of operation from the effective date of this Act Chapter.  Compensation for members of the Board during subsequent years shall be determined by the Board by two-thirds votes of its members.

     (4)  Terms of Office.  Terms of office of municipal representatives shall be for a period of two years, except that initial terms of office and filling of vacancies shall be as provided in this act Chapter.  The State Senator shall serve on the Board during his term of office in the Legislature.  The term of office shall commence on the day of the first meeting of the Board.

     (5)  Organization Meeting.  Not later than 60 days after the effective date of this act Chapter, the Board shall meet to select its officers and conduct other business.  The first meeting of the Board shall be called by the State Senator who shall preside at such meeting.

     (6)  Vacancies.  Each vacancy on the Board shall be filled for the unexpired portion of the term in the same manner as originally filled. Upon a determination that a vacancy exists, the chairman or, in his absence, the presiding officer of the Board shall issue a notice of vacancy to all members of the Board and to the municipal government responsible for filling the vacancy.

     (7)  Removal.

     (a)  Members of the Board may be removed from the Board for failure to attend three connective meetings of the Board, or for incompetence, neglect of duty, or malfeasance in office;

     (b)  Removal of a member shall be by a three-fourths vote of all other members of the Board.  Notification of intent to call for removal pursuant to this Section shall be made at least 30 thirty days in advance, by means which shall be described in the bylaws of the Authority, and shall include a summary of the basis of the charges against the member and identification of the witnesses to be called and evidence to be used;

     (c)  the appropriate court in the State of Truk shall have jurisdiction to hear claims of wrongful removal.  Upon establishment of The Chuuk State Supreme Court of the State of Truk it shall assume jurisdiction to hear such claims of wrongful removal.

     (8)  Officers.  The Board shall elect among its members a chairman, vice-chairman, and secretary-treasurer.  The Chairman shall ordinarily preside at Board meetings.  In his absence the vice-chairman shall preside.  In his absence the secretary-treasurer shall preside.  The bylaws shall designate the presiding officers in the absence of these officers.

     (9)  Regular Meetings.  Regular meetings shall be held not less than once per calendar quarter, at such time and place as shall from time to time be determined by the chairman upon notice as shall be provided by the bylaws.

     (10)  Special Meetings.  Special meetings shall be called by the Chairman on his own initiative, or by petition by one-third of the members, pursuant to notice as shall be provided in the bylaws.

     (11)  Quorum.  A quorum of all regular and special meetings and business of the Board shall be eight members.

     (12)  Executive Committee.  The Board may, pursuant to its bylaws, establish an Executive Committee, determine the membership thereof, and assign its responsibilities.

     (13)  Record of Meetings.  All meetings of the Board and the Executive Committee shall be public except when confidential matters relating to personnel are discussed.  The Secretary-Treasurer or in his absence another member designated by the bylaws shall keep full, accurate minutes of all meetings which, except for confidential matters relating to personnel, shall be available for public inspection at a reasonable time and place, as provided by law.

Source:  CSL 5-25, 4, as amended by TSL 5-111, 1, modified.

      1205.  Powers of the Authority.
     The Authority, through its Board of Directors, shall have the following powers, obligations and duties:

     (1)  to identify the needs for the economic, educational, and social development of the area served by the Authority, taking into account the cultural and social traditions of the area;

     (2)  to formulate plans and goals for the development of the resources of the area;

     (3)  to seek from all appropriate sources funds for the implementation of such plans;

     (4)  to administer programs and projects in furtherance of such developmental goals, either through its employees or by contract, or such other means as the Board deems advisable;

     (5)  to employ an Executive Director and a Budget and Finance Officer, and to set the terms of employment and to employ such administrative staff and other employees as may be required by law or needed in furtherance of the goals of the Authority;

     (6)  to acquire in any lawful manner any property, real property or mixed, tangible or intangible, or any interest therein; to hold, maintain and use the same; and to sell, lease or otherwise dispose of them;

     (7)  to establish, maintain, operate, and engage in, upon its own account, any appropriate enterprise, undertaking, or activities in furtherance of the purposes of the Authority. s and to receive payments thereof, such payments to go into the general revenues of the Authority;

     (8)  to enter into and perform contracts or other agreements or transactions as may be necessary in the conduct of its business;

     (9)  to borrow money from time to time; provided however, that the debts of the Authority shall not be debts of the State of Truk Chuuk or any of its political subdivisions; the assets of the State Government or its political subdivision shall not be used as security for the debts of the Authority, unless otherwise provided by law;

     (10)  to levy and collect charges, fees, and other payments for goods sold and services rendered by the Authority, except that no such levy shall be in the form of a tax or assessment levied against the general public, the users of public facilities, or property benefitted by actions of the Authority, unless specifically authorized by law;

     (11)  to execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise of its powers;

     (12)  to take such other actions and assume other responsibilities as may be necessary or appropriate in the exercise of its powers; and

     (13)  to approve bylaws, policies, and procedures, for the guidance and operation of the authority.

Source:  CSL 5-25, 5, modified.

      1206.  Suits and legal representation.

     (1)  The Authority may sue and be sued in its own name; provided that any liability incurred by the Authority, when not acting as an agent of the State or other governmental entity, shall not be a liability of the State or other governmental entity; and

     (2)  The State Attorney General of Truk Chuuk shall represent and assist the Authority in legal matters.

Source:  CSL 5-25, 6.

      1207.  Management.

     (1)  The Authority, through the Board, may receive, manage, invest, and disburse funds or other property which may be appropriated, granted, or in any other manner received from any source for the purposes of the Authority.  The Authority may use governmental accounting procedures or, if appropriate, such financial or accounting system as may be prescribed by law for commercial companies; and

     (2)  The Authority may purchase supplies, equipment, and materials through its own purchasing procedures or governmental purchasing procedures.

Source:  CSL 5-25, 7.

      1208.  Annual budget.
     The Board shall prepare and submit a budget for the authority for each governmental fiscal year, in the manner provided by law for the preparation and submission of budgets of departments and offices in the State Government of Truk Chuuk.  Over-obligation and over-expenditures of funds are prohibited, and shall be punishable in the same manner as provided for the State Government of Truk Chuuk.

Source:  CSL 5-25, 8.

      1209. Executive Director.
     There shall be an Executive Director of the Authority, who shall be appointed by the Board to serve at its pleasure.  The Board shall establish the salary of the Executive Director.  The Executive Director shall be responsible for the management of the programs, projects and other activities of the Authority, and shall employ, supervise, and terminate the employees of the authority in accordance with general terms and rules of employment by the Board, except as provided in Section 1212 10 hereof of this Chapter.

Source:  CSL 5-25, 9, modified.

      1210.  Budget and Finance Officer.
     The Executive Director shall appoint with the concurrence of the Board, a Budget and Finance Officer, for a term as provided in the bylaws.  The Budget and finance Officer shall receive and disburse all funds of the Authority.  Before entering into his duties, he shall execute, at the expense of the Authority, a good and sufficient bond in the sum of not less than $10,000, or such sum as may be established by the Board.  The bond shall be made with one or more sufficient sureties authorized to do business in the Federated States of Micronesia; and shall be approved as to form by the Attorney General of the State of Truk Chuuk.  The Budget and Finance Officer shall serve at all times under the direct supervision of the Executive Director.

Source:  CSL 5-25, 10.

      1211.  Accounts and records.
     The Board and the Executive Director shall be jointly responsible to ensure that the Budget and Finance Officer prepares proper and complete books of accounts reflecting all income, expenditures, assets, and liabilities of the Authority, including appropriations, grants, and property.  The Board, no later than sixty days after the close of each governmental fiscal year, shall submit to the Governor and the President and the Speaker of the Legislature a complete report showing the activities of the Authority during the fiscal year, the present condition of the Authority, and such other matters as the Board shall deem appropriate.  The State Auditor, of if there be no such officer, a licensed accountant appointed by the Board, shall inspect and audit all accounts of the Authority at least annually, and report thereon to the Governor and the President and the Speaker of the Truk Chuuk State Legislature.

Source:  CSL 5-25, 11, modified.

      1212.  Taxation of the Authority.
     To the extent that the legislative capacity of the State of Truk Chuuk can prescribe, the Authority shall be treated as a governmental entity and shall be exempted from taxation in the same manner as a governmental entity with regard to its functions that are governmental in character.  With respect to functions that the Authority may undertake that are commercial in character the Authority shall be treated as a non profit commercial enterprise.

Source:  CSL 5-25, 12.

      1213.  Personnel administration.

     (1)  The Authority may establish its own personnel system and policies, independent of the Truk Chuuk State Public Service System, or may, by appropriate resolution of the Board addressed to the Governor, be included in the Truk Chuuk State Public Service System for purposes of its personnel administration, provided that if the Authority chooses to be included in the State Public Service System, the Board may designate positions to be exempted from that system;

     (2)  All employees of the Authority, including the Executive Director and the Budget and Finance Officer, if members of the Truk Chuuk State Public Service System immediately prior to their employment with the Authority, shall continue to accrue rights as their seniority entitles then during employment with the Authority;

     (3)  The Board may, by general rules applicable to all employees, assign to employees levels of wages and benefits that take into account, in whole or in part, their prior governmental employment; and

     (4)  The Truk Chuuk State Government shall provide to all former employees of the Authority, who shall have terminated their employment in good standing, rights of employment and seniority as their services to the Authority, as well as prior governmental service, would entitle them as if all their service were with the Truk Chuuk State Government, the Trust Territory Government, or National Government.

Source:  CSL 5-25, 13, modified.

      1214.  Notification to Municipal Governments regarding projects.
     The Authority shall endeavor to inform affected municipal governments of any projects planned for their communities at the earliest practical opportunity and shall continue to inform the municipal government and members of the public of the nature of the projects and any substantial change in their plans.

Source:  CSL 5-25, 14.

      1215.  Land acquisition and relocation assistance.

     (1)  Any activity of the Authority which requires the acquisition of a right in private real property shall be governed by the requirements of Truk State Law No. 2-1, or its successor.  The State Government shall be responsible for such property acquisition and relocation assistance.

     (2)  The Authority shall promptly notify the State Government whenever it requires use or acquisition of private real property of the state or the public land authority.  The notification shall describe with specificity the property to be used or acquired, the reason for its need, the extent and duration of possession required, alternative possibilities that have been considered and rejected and the reason therefor, and the date by which such acquisition or use is expected to commence. Any rights in private property acquired for the benefit or use of the Authority shall be held by the State Government except as otherwise specifically provided by law.

Source:  CSL 5-25, 15, modified.