Article VIII

     Section 1.  The Legislature may provide for the establishment of political subdivisions within the State and provide for the government thereof.  Each political subdivision shall have and exercise powers as may be conferred by laws.  The people may organize and operate local governments in a manner consistent with law.
mployer during a premium payment period. (4) Any person required to pay a premium amount for whom a collection procedure is not otherwise provided in this chapter or the regulations shall pay such premium amount to the Plan with such report or returns as specified by the Board. Source: S.L. No. 3L-39-93 §5-4, 7/29/93 §4-138. Supplemental revenues. ( The Plan shall seek appropriations from the Pohnpei Legislature, the FSM Congress, and from other sources, for such additional revenues as it is reasonably anticipated will be necessary to compensate for any reduction of the total amount of assessments and premiums collected or that are otherwise deemed to be beneficial to the financial status of this Plan. Source: S.L. No. 3L-39-93 §5-5, 7/29/93 §4-139. Premium collection. ( The Board, by regulation, shall establish and implement procedures to regularly collect premium amounts from government appropriations, enrollees, employers, and other sources. Source: S.L. No. 3L-39-93 §5-6, 7/29/93 §4-140. Sanctions. ( (1) If any premium amount imposed by this chapter or regulations is not paid by an employer or enrollee on or before the date prescribed for such payment, there shall be collected, in addition to such premium amount and penalties, interest on the unpaid balance of the premium amount at the rate of ten percent (10%) per annum from its due date until the date it is paid. (2) An employer who has failed to make premium payments when required under this chapter shall be liable to the Plan for the reasonable costs incurred by the Plan and/or employee or covered dependent(s) for medical services required by the employee or covered dependent(s); PROVIDED that such liability shall not exceed the costs of such services allowable under the Plan at the level for which the premiums were to be made. (3) Any employer found to carry on any employment practice directly or indirectly designed to discourage or prevent employees from exercising the option to accept the first level of voluntary coverage shall be subject to a penalty of not more than ten times the amount due to the Plan by the employer for each employee so affected by such practice. Receipts from the penalty shall first go to payment of the affected employees’ premium payments. The remainder shall be deposited in the trust fund of the Plan as the realization of general revenue. Source: S.L. No. 3L-39-93 §5-7, 7/29/93 §4-141. Remedies. ( (1) The Board is authorized to take civil action and impose liens, if necessary, to collect overdue premiums or any amount i