THE REPUBLIC OF THE MARSHALL ISLANDS

27TH CONSTITUTIONAL REGULAR SESSION, 2006

BILL NO: 113ND2

P.L. 2006 - 67

LOCAL GOVERNMENT (AMENDMENT) ACT 2006
______________

AN ACT

to amend the "Local Government Act, 1980" in order to ensure that any member of a Local Government who is suspected of having committed or of committing criminal activities is investigated and if appropriate, prosecuted; and for related matters.

BE IT ENACTED BY THE NITIJELA OF THE REPUBLIC OF THE MARSHALL ISLANDS:

Section 1. Short Title.

This Act may be cited as the Local Government (Amendment) Act, 2006.

Section 2. Amendments.

(1) Section 140 of the Local Government Act, 1980 is hereby amended to read as follows:

§140. Audit.

(1) The Minister may arrange for an audit inspection of the funds and accounts of a local government to be carried out by the Auditor-General or a person authorized by him in the following circumstances:

(a) on the petition of not less than twenty-five percent (25%) of the registered voters in the local government area; or

(b) of his own motion, if he has reason to suspect any fiscal irregularity in the conduct of the affairs and operations of the local government.

(2) For the purpose of an audit inspection under Subsection (1) of this Section, the Auditor-General or authorized person has the powers and rights specified in Article VIII, Section 15 of the Constitution of the Marshall Islands.

(3) The report on the audit inspection shall be sent to the Minister (who may, if he thinks it proper to do so, publish it), and to the local government. [P.L.1981-2, §40].

(4) Where the Minister has been provided with evidence that any member of a Local Government has committed or is committing illegal activities, the Minister shall refer the matter to the Attorney General's office for further investigation or prosecution.

(5) For the purposes of subsection (4), evidence provided to the Minister may include -

(a) findings of the Auditor-General in the report provided under subsection (3); or

(b) reliable evidence from any other source.

(6) Any member of a Local Government who is convicted of an offense under this Act or any other enactment of the Marshall Islands or under the Constitution of a Local Government shall -

(a) in the case of an elected official, if convicted of a felony, be required to stand down from office; or

(b) in the case of an employee, if convicted of a felony, be terminated from employment.

(7) Where an elected official has been required to stand down from office under subsection 6(b), a new officer shall be elected or appointed in accordance with the provisions of the Constitution of that Local Government.

(2) Section 141 of the Local Government Act, 1980 is hereby amended to read as follows:

§141. Inquiries.

(1) The Minister may appoint, in writing, a person to inspect the affairs of a local government under the following circumstances:

(a) on the petition of not less than twenty-five percent (25%) of the registered voters in the local government area; or

(b) of his own motion, if he has reason to suspect any irregularity, mismanagement or failure to comply with the law in the conduct of the affairs and operations of the local government.

(2) An inspector:

(a) shall be allowed, by the local government and other persons, full and free access to all records of or relating to the local government,

(b) may take evidence, orally or in writing, from any person, on oath or affirmation;

(c) may require any person to attend and give evidence, or to produce any document; and

(d) generally, shall make full and impartial inquiry into the affairs and operations of the local government.

(3) For the purposes of his inquiry an inspector may administer oaths and affirmations.

(4) A person who hinders or obstructs an inspector in the performance of his functions, or subject to Subsection (5) of this Section, fails to comply with a requirement under Subsection (2)(c) of this Section, shall be guilty of a misdemeanor and shall upon conviction be liable to a fine not exceeding $500 or to a term of imprisonment not exceeding six (6) months, or both.

(5) It is a defense to a charge of an offense against Subsection (4) of this Section if the accused person proves that the evidence or document was not relevant to the inquiry.

(6) The report of the inquiry shall be sent to the local government and to the Minister who may, if he thinks it proper to do so, publish it. [P.L. 1981-2, §41.]

(7) Where the Minister has been provided with evidence that any member of a Local Government has committed or is committing illegal activities, the Minister shall refer the matter to the Attorney General's office for further investigation or prosecution.

(8) For the purposes of subsection (7), evidence provided to the Minister may include

(a) findings of the inspector in the report provided under subsection (6); or

(b) reliable evidence from any other source.

(9) Any member of a Local Government who is convicted of an offense under this Act or any other enactment of the Marshall Islands or under the Constitution of a Local Government, shall -

(a) if convicted of a misdemeanor offense, be suspended; or

(b) if convicted of a felony, be terminated from employment.

(10) Where an elected official has been required to stand down from office under subsection 9(b), a new officer shall be elected or appointed in accordance with the provisions of the Constitution of that Local Government.

(3) Section 142 Subsections (4) and (5) of the Local Government Act, 1980 are hereby deleted in their entirety; and Subsections (6) and (9) are amended to read as follows:

§142. Suspension of local government.

(1) If the operation, administration or financial condition of a local government endangers the health, safety or economic well being of a local government area, or if suspension is recommended in a report under Section 140 or 141 of this Chapter, the Cabinet may, by written order served on the local government:

(a) suspend the operation of a local government; and

(b) appoint an Administrator-Receiver for the local government and vest in him some or all of the powers and functions of the local government.

(2) In relation to powers and functions vested in him under Subsection (1)(b) of this Section, the Administrator-Receiver shall be deemed to be, and shall act in the name of, the local government.

(3) The suspension and the appointment of an Administrator-Receiver shall be immediately communicated to the local government and promulgated in the local government area.

(4) Nothing prevents an action for a declaratory judgment in the High Court or other remedy by any member of the Council arising out of the same issues, or out of the suspension or of the appointment or actions of the Administrator Receiver.

(5) The suspension of a local government and the appointment of an Administrator Receiver terminates automatically upon the occurrence of either of the following, but in any case upon termination by the Cabinet:

(a) if the High Court advises or declares that the appointment was not justified;

(b) at the end of the period of one year:

(c) immediately after the next general election to the Council; or

(d) when the Administrator-Receiver advises the Minister, in writing, that the danger is past or the other cause of the suspension has been eliminated.

(6) An Administrator-Receiver may, by notice in writing to the Minister, resign his office, and the Cabinet may terminate his appointment at any time without terminating the suspension. 

(7) Prior to the end of the term of appointment of the Administrator-Receiver, or in the case of a termination under Subsections (5) or (6), on the termination of his or her appointment, an Administrator-Receiver shall account to -

(a) the Minister; and

(b) through the Minister, to the Cabinet and the local government –

for his activities (including his financial and property operations).[P.L. 1981-2, §42.]

Section 3. Effective Date

This Act shall take effect on the date of certification, in accordance with the Constitution and the Rules of Procedures of the Nitijela.

CERTIFICATE

I hereby certify:

(1) That Nitijela Bill No: 113ND2 was passed by the Nitijela of the Republic of the Marshall Islands on the 6th day of November, 2006; and

(2) That I am satisfied that Nitijela Bill No.: 113ND2 was passed in accordance with the relevant provisions of the Constitution of the Republic of the Marshall Islands and the Rules of Procedures of the Nitijela.

I hereby place my signature before the Clerk this 5th day of be December 2006. 

Attest:

Ruben R. Zackhras

Vice-Speaker

Nitijela of the Marshall Islands	
Joe E. Riklon

Clerk

Nitijela of the Marshall Islands