C.A. 16-21, now Public Law 16-19, amends section 313 of Title 54 of the Code of the FSM to make all captive insurance companies subject to the FSM corporate income tax, regardless of capitalization.
C.A. 16-16, now Public Law 16-20, amends Public Law 16-07 to appropriate the FSM Education Sector Grant for FY 2010 – Amendment 1 Grant of $603,240 to the National Department of Education and to appropriate the FSM Supplemental Education Grant for FY2009 with the amount of $684,564 to the College of Micronesia.
Public Law 16-19 complements the passage of Congressional Act 16-17 which allows for the formation and licensing of class III captive insurance companies, known as multiple corporate captive insurance companies, or MCCs.
With this Act, MCCs, being another type of captive insurance company, now become subject to the corporate income tax under Chapter 3 of Title 54 of the FSM Code, creating consistency in local tax laws for captive insurance companies.
Public Law 16-20 amends the fiscal year 2010 budget bill to accurately reflect the grant amounts that the National Department of Education and the College of Micronesia-FSM are receiving.
The NDOE Education Sector Grant for GY 2010 was delayed due to JEMCO Resolution 2009-6 that required the FSM to provide a financial plan that is aligned with the FSM National Department of Education’s Integrated Performance Plan.
This was done in September of 2009 and JEMCO Resolution 2009-11 added another $603,240 to the FY2010 Education Sector Grant.
For the College of Micronesia-FSM’s Supplemental Education Grant, for FY 2009, there was a delay in its approval, so it was absent from the original budget bill until it was approved by the United States. Once approved, it was added to the college’s budget items.
