Added by State Law 7-91.
Section 7.603. Legal
characteristics and capacity of the Authority.
In performing the
responsibilities and duties authorized by this act or other laws of the State,
the Authority holds the capacity to exercise all powers reasonably necessary to
discharge its duties and responsibilities, including, but not limited to, the
following:
(1) To adopt, alter, and use an official seal.
(2) To adopt and amend bylaws and other rules, regulations and directives governing all aspects and duties granted to or imposed upon it by law. No bylaw, rule or regulation, other than those covering the internal operation of the Authority, is adopted without a public hearing.
(3) To establish procedures and policies to ensure timely payment and collection of Authority bills.
(4) To sue and be sued as an entity; provided that satisfaction of judgments or the settlement of claims on tort actions against the Authority may only be paid out of contingency reserves or insurance held by the Authority and not out of the other assets or operating capital of the Authority, and for these purposes the doctrine of sovereign immunity is recognized and maintained for this public Authority to the extent not expressly waived by State law.
(5) To acquire, in any lawful manner, real, personal, or mixed property, either tangible or intangible; to hold, maintain, use, and operate such property; and to sell, lease, or otherwise dispose of such property.
(6) To borrow or raise any sum or sums of money and to issue bonds on such security and upon such terms as may from time to time be deemed necessary for the expansion and improvement of Authority services.
(7) To retain and terminate the services of employees, agents, attorneys, auditors, and independent contractors upon such terms and conditions as the Authority deems appropriate.
Background
Added by State Law 7-91.
Section 7.604. Debts and
obligations of the Authority.
Unless otherwise
expressly provided by law, the debts and obligations of the Authority are not
the debts or obligations of the Kosrae State Government, and the Kosrae State
Government is not responsible for any such debts or obligations.
Background
Added by State Law 7-91.
Section 7.605. Tax liability.
The Authority exists and operates solely for the benefit of the public and is exempt from any taxes or assessments on any of its property, operations or activities imposed by the Kosrae State Government or local governments or, to the extent allowable, the Government of the Federated States of Micronesia. Nothing herein may be
deemed to exempt employees and independent contractors of the Authority from tax
liability for services rendered to the Authority, and the Authority is liable
for employer's social security contributions in the manner provided by law.
This Section is repealed on October 1, 2005.
Background
Added by State Law 7-91.
Section 7.606. Composition of the Board; term.
The Authority is governed
by a Board of five Directors. The Board is composed of four Directors
appointed by the Governor with the advice and consent of the Legislature, and,
ex-officio, the Director of the Department of Public Works. An appointed
Director serves for a term of four years, subject to reappointment, and until
his successor has been appointed and qualifies. Initially, the Governor
appoints two Directors to two year terms and two Directors to four year terms.
A vacancy is filled for the remainder of the term for the vacated
position.
Background
Added by State Law 7-91.
Section 7.607. Meetings
of the Board.
Within 15 days after the
confirmation of the initial Board, the Governor calls an organizational meeting
for the purpose of electing its officers. The Board meets and holds at
least one public meeting each calendar quarter and other public meetings as it
may deem necessary for the transaction of its general business.
Background
Added by State Law 7-91.
Section 7.608. Organization of the Board; quorum;
compensation and expenses.
Pursuant to its bylaws,
the Board organizes by electing one of its members as Chairman and another as
Vice-Chairman. The Board also designates from among its members a
Secretary to keep the minutes and records of the Board. Any three members
of the Board constitute a quorum, and a concurrence of three members is
necessary for any official action taken by the Board. No vacancy in the
membership of the Board impairs the right of a quorum to exercise all of the
rights and perform all of the duties of the Board. Directors are
compensated at established rates when actually attending meetings of the Board,
except the Director of the Department of Public Works who does not receive
additional compensation. All Directors receive travel expenses and per
diem at Kosrae State Government rates when these amounts would be payable to
Kosrae State Government employees in the same circumstances.
Background
Added by State Law 7-91.
Section 7.609. Appointment of General Manager; removal.
The Board appoints a
General Manager and fixes his compensation. The General Manager has full
charge and control of the operation and maintenance of all the Authority
facilities and other real and personal property controlled by the Authority, and
of construction of any facilities, and necessary work on vehicles, vessels and
equipment controlled by or required to be rebuilt or repaired by the Authority.
The Board may remove the General Manager for good cause upon a majority
vote. During any period when the position of General Manager is vacant,
the position is temporarily filled from within the organization pursuant to its
rules and regulations.
Background
Added by State Law 7-91.
Section 7.610. Duties of
the General Manager.
The General Manager of
the Authority has the following duties:
(1) To ensure that all laws and regulations pertaining to the ports of entry into the State are complied with.
(2) To attend all meetings of the Board and to submit a general report on the affairs of the Authority.
(3) To keep the Board advised on the needs of the Authority.
(4) To approve demands for payment of obligations for the purposes and within amounts authorized by the Board.
(5) To prepare or have prepared all plans and specifications for the construction and repair of facilities, vehicles, vessels, and equipment operated by the Authority.
(6) To manage the daily business of the Authority; to select and appoint the employees of the Authority except as otherwise provided in this act; to contract with independent contractors; and to plan, organize, coordinate and control the services of such employees and contractors in the exercise of the powers of the Authority under the general direction of the Board.
(7) To publish within 60 days after the end of each fiscal year, in the manner required by the Board, a complete financial and operations statement showing the result of operations for the preceding fiscal year and the financial status of the Authority on the last day thereof.
(8) To perform such other and additional duties as the Board may require.
Background
Added by State Law 7-91.
Section 7.611. Appointment of comptroller and general
counsel; duties of each.
The General Manager appoints a comptroller
and a general counsel, both of whom report to the General Manager. The
comptroller and the general counsel may be terminated for good cause by the
General Manager. The comptroller and the general counsel are compensated
at rates determined by the Board. Such officers may be full-time employees
of the Authority, shared with the Kosrae State Government, or be placed on
retainer from the private sector. The General Manager may appoint one or
more assistants to any such office.
(1) The comptroller has custody of all monies of the Authority and pays out such money only in accordance with the direction of the Board and as provided in the annual budget of the Authority.
(2) The general counsel advises the Board and the General Manager in all legal matters to which the Authority is a party or in which the Authority is legally interested and may represent the Authority.
Background
Added by State Law 7-91.
Section 7.612. Accounting and reporting.
The Board adopts and
maintains a system of accounting which is in accordance with generally accepted
accounting principles applicable to public corporations. The system
adopted requires:
(1) That the Board employ a firm of independent certified public accountants who examine and report upon to the Board, at least annually, all financial records and accounts maintained by the Authority, and that copies of such reports are furnished to the Governor and the Legislature, and
(2) That the Board present to the Governor and the Legislature an annual report on the affairs of the Authority within 60 days after the end of each fiscal year and, when requested by the Governor or the Legislature, present special reports within 30 days after the end of each intervening quarter.
Background
Added by State Law 7-91.
Section 7.613. Budget preparation.
In consultation with the
Board, the General Manager prepares in advance of each fiscal year an annual
budget for the Authority. The Authority uses the same fiscal calendar as
the Kosrae State Government.
Background
Added by State Law 7-91.
Section 7.614. Supplemental budget requests.
To the extent that the
Board deems it necessary and advisable, the Authority is authorized to seek
grants and loans from the Legislature and, to the extent approved by the
Governor, grants from sources outside of the State, of such funds as are
necessary to supplement revenues to provide for the operation, maintenance, and
expansion of Authority services in the State.
Background
Added by State Law 7-91.
Section 7.615. Procurement Manual of Administration.
The Board adopts
procurement regulations and establishes a Manual of Administration for the
Authority including rules and regulations governing the selection, promotion,
performance evaluation, demotion, suspension, dismissal, and other disciplinary
rules for employees of the Authority.
Background
Added by State Law 7-91.
Section 7.616. Public
Service System exemption; eligibility for insurance plans, retirement funds and
workers compensation funds.
The employees of the Authority shall be exempt from the provisions of the Public Service System of Title 18 of this code.
Employees of the Authority are eligible to participate in any health
insurance plan, life insurance plan, retirement fund, and workmen's compensation
fund available to Kosrae State Government employees. The Authority
contributes to such programs as determined by the governing authorities
thereof.
Background
Added by State Law 7-91.
Section 7.617. Transition.
(1) Following organization of the Authority, the State transfers to the Authority all port of entry facilities and grounds, along with all equipment and supplies therefor, on terms mutually agreed to by the State and the Authority.
(2) All State employees employed in the Division of Airport, Docks and Harbor at the time of the organization of the Authority shall be allowed to voluntarily transfer to the Authority. At such time, the Authority assumes the payroll expenses of transferred employees and credits such employees with the sick leave and personal leave accrued with the State.
(3) All deeds, bonds, agreements, instruments and working arrangements existing immediately before the effective date of this act which affect any undertaking transferred hereby will continue in full force and effect against or in favor of the Authority.
(4) Any proceedings or cause of action pending or existing immediately before the effective date of this act by or against the State or any person acting on behalf of the State which pertains to any undertaking transferred hereby may be continued or enforced by or against the Authority. Any causes of action stemming from conditions existing at the time of the transfer may be enforced by or against the Authority. The Authority agrees to hold the State harmless and indemnify the State from all claims, demands, and lawsuits from any action described in this subsection.
(5) All transfers are accomplished without disruption of port services which will continue at levels at least equal to those provided at the time of the transfer.
(6) Title 10 of the Kosrae Code will apply to the Authority until Section 7.512 is fully complied with as certified by the firm of independent certified public accountants employed by the Authority.