Article IX
TAXATION AND FINANCE

     Section 1.  The power of taxation shall never be surrendered, suspended or contracted away.

     Section 2.  No tax shall be levied or appropriation of public money made or public property transferred except for a public purpose.

     Section 3.  The property of the State Government or its political subdivisions shall be exempt from taxation.

     Section 4.  The taxing power shall be reserved to the State Government, except so much thereof as may be delegated by the Legislature to the local governments; provided that the State Government may not tax real property.

     The Legislature may apportion State revenues among local governments.

     Section 5.  The Legislature shall not appropriate funds in excess of estimated available revenues.

     Section 6.  No money shall be withdrawn from the State treasury nor obligated except in accordance with law.

     Section 7.  The Governor shall submit to the Legislature a budget setting forth a complete plan of proposed expenditures and anticipated receipts of the State Government, together with other information as the Legislature may require.  The budget shall be submitted in a form, at a time, and for fiscal years prescribed by law.

     The Governor shall also submit bills to provide for proposed expenditures and for any recommended additional revenues at a time prescribed by law.

     Section 8.  There shall be regular and independent audits of State agencies and revenues.

     Section 9.  The State shall conduct regular public oversight hearings of the State agencies and revenues.

Constitional amendment:  New Section 9 was added by a constitutional amendment adopted by Yap State voters on November 7, 2006 and certified by the Yap State Election Commissioner on November 24, 2006.  The amendment was set forth in Proposal No. 2004-51, D2 of the 2004 Yap Constitutional Convention.

ial requirements as cannot be met without increase in revenues or outside financial assistance. The annual budget shall be reviewed and approved by the Board. (2) The estimated administrative costs budgeted for any fiscal year of the Plan shall not exceed an expenditure maximum equal to ten percent (10%) of the Plan’s estimated income for such year. For purposes of this section, “administrative costs” include the costs of salaries and wages, maintenance of branch offices, patient and physician care coordination, third-party administrator contractual service fees, office supplies and equipment, as well as actuarial, auditing, legal, computer, financial management, accounting, and similar services. For purposes of this section, “income” includes universal coverage payments made, premiums collected, investment income, fines, penalties, and interest collected. “Income” also includes such subsidiary funds received from the Pohnpei Government, the national government or any other sources for payment to the fund that are not allocated to any particular or specific use or category of expenditure; PROVIDED that the specific approval of the Board must be obtained for any budgeted administrative cost from such particular or special use of category funds in excess of the expenditure maximum prescribed in this section. Source: S.L. No. 3L-39-93 §7-5, 7/29/93 §4-150. Tax exemption. ( The Plan shall exist and operate solely for the benefit of the public and shall, to the extent allowed by law, be exempt from any taxes or assessments on any of its property, operations or activities. Nothing herein shall be deemed to exempt employees and independent contractors of the Plan from tax liability for income received from the Plan. Source: S.L. No. 3L-39-93 §7-6, 7/29/93 §4-151. Corporate debts and obligations. ( Unless otherwise expressly provided by law, the Pohnpei Government shall not be liable or responsible for any debts or obligations of the Plan. Source: S.L. No. 3L-39-93 §7-7, 7/29/93 §4-152. Immunity from liability. ( The Plan and officers, employees, and Board members of the Plan shall be immune from liability for acts or omissions with respect to service for the Plan to the same extent as the Pohnpei Government and officers, directing boards and employees of the Pohnpei Government with respect to government service. Source: S.L. No. 3L-39-93 §7-8, 7/29/93 §4-153. Records and reporting. ( (1) The Executive Director shall keep accurate records of the Plan’s business transactions. Such records shall include, but not be limited to, accounting of all income and expenditures, assets (both tangible and intangible), and liabilities of the Plan. The Executive Director shall prepare and submit to the Board a monthly report, that shall include the monthly financial report. The Board, not later than 90 days after the close of each fiscal year, shall submit to the Governor and the Legislature a complete report showing the activities of the Plan during the fiscal year, the present financial condition of the Plan, and such other matters as the Board shall deem appropriate. (2) The personal records of the Plan shall be confidential. No officer, employee or Board member of the Plan shall disclose any personal records obtained by him in any manner in connection with his service as such officer, employee, Board member or otherwise. For purposes of this section, the term “officer, employee or Board member” includes a former officer, employee or Board member. “Personal records” means any records concerning any individual enrollee or employer