Here are the highlights from the sessions this week, November 12 (Saipan & Northern Islands Legislative Delegation) and November 13-14 (House):
SNILD passes new Zoning bill
The bill proposes to repeal and reenact the Zoning law, and includes changes with respect to signage and lighting, road standards, adult businesses, microbreweries and home day care centers, road standards, etc. The bill also eases zoning requirements to facilitate the reuse of old garment factory warehouses. In discussions with Zoning Board Chair Mr. Henry Hofschneider, and Zoning Administrator Mr. Steve Tilley, some members, including Senator Pete Reyes and I, said that in the future, they preferred to see the Zoning Board enact zoning changes by regulation rather than coming to the Saipan delegation again and again to repeal and reenact the law.
All members present voted yes to the bill. The bill now heads to the governor.
House Bills Introduced on the Floor (not on the agenda)
House Resolutions Adopted
1. HR 16-62: encouraging the Commonwealth Development Authority board and executive director to deny granting additional benefits to the existing Qualifying Certificate to Saipan Laulau Development, Inc.
Supporters of the resolution noted that the CNMI had been quite generous to Saipan Laulau Development, Inc. already, granting breaks on the lease of the property as well as tax breaks worth $18million, and there had to be reasonable limits placed on such generosity, as well as tangible benefits to the community arising from the investment. Speaker Palacios in particular noted that the decision to approve new lease terms and reduced rent for SLDI had been the hardest decision he’d had to make during the 15th Legislature, but he had ultimately endorsed the proposal because of the promise of additional tax revenues, jobs, tourists, and other benefits – only to find that SLDI would subsequently ask for tax breaks, scale back its investment, and then ask for more tax breaks.
Opponents of the resolution argued that the problem lay not with Saipan Laulau Development, Inc. for requesting the additional benefits, but with the government for sending mixed signals to investors and with the Qualifying Certificate program itself. Rep. Santos informed the members that she was presently developing a bill to overhaul and depoliticize the Qualifying Certificate program, and urged Rep. Yumul to withdraw his resolution and work with her on the bill instead, but Rep. Yumul said that the Legislature had attempted in the past to amend the program without any success and his primary concern as the Ways and Means chair was to prevent further erosion of the CNMI’s tax base as a result of any additional benefits that CDA might grant to Saipan Laulau Development, Inc.
In my comments on the floor, I concurred with Rep. Santos and other members that our focus should be on improving the QC statute and minimizing political influences in the program, rather than targeting an individual investor’s request for QC modifications. I noted that other investors in the past had requested modifications to their Qualifying Certificate, and had been denied because CDA regulations did not allow for reconsideration of approved QCs. Now the CDA Board is attempting to revise its regulations to allow such reconsideration to accommodate SLDI, and though SLDI is at present the only investor requesting additional benefits, I worried that the new regulations, if promulgated, would open the floodgates for additional requests from other investors that would also have to be accommodated. I said that rather than singling out one investor in a resolution, we should devote our attention to ensuring that the QC statute provides for the fair, objective, and consistent implementation of the program.
Because this resolution was particularly controversial and subject to such lengthy debate, a roll call vote was taken. Members who voted yes to the resolution were: Reps. Edwin Aldan, Joseph Camacho, Frank Dela Cruz, Joseph Deleon Guerrero, Heinz Hofschneider, Victor Hocog, Ray Tebuteb, Ralph Torres, Arnold Palacios, and Ray Yumul. Members who voted no were: Reps. Oscar Babauta, Ray Palacios, Justo Quitugua, Ed Salas, Rosemond Santos, Stanley Torres, and myself. Rep. Joseph Reyes abstained; Reps. Diego Benavente and Dave Apatang were absent.
2. HR 16-63: endorsing the strategic development plan for the establishment of the Micronesian Center for a Sustainable Future, and an administrative, research, and development center for the Micronesian Chief Executives Summit and the Micronesian Presidents’ Summit (Rep. Joseph Camacho)
3. HR 16-64: requesting the Office of the Public Auditor to conduct a close-out audit of the Office of the Resident Representative to the United States for the CNMI before the term of the Resident Representative expires on January 2, 2008 (Rep. Ray Yumul)
4. HR 16-65: creating a Small Business Development and Assistance Task Force to assess and analyze the current economic factors leading to to the decline in small business revenue in the Commonwealth, and to formulate a strategy to assist local businesses in increasing current revenue streams and to assist in the development of new revenue generating prospects; the task force will be chaired by Ways and Means Chair Rep. Yumul (Rep. Ray Yumul + 4)
5. HR 16-66: urging the Department of Public Safety to vigilantly enforce Public Law 15-127, the Fireworks Control Act of 2008 (Rep. Oscar Babauta +13)
6. HJR 16-4, HS1: to create a joint focus group within the Legislature to study the Guam military build-up and to help prepare the Commonwealth for the military expansion in the Marianas (Rep. Ray Yumul)
7. SJR 16-96: congratulating President-Elect Barack Obama on his election as the 44th president of the United States of America
Joint Conference Committee Report on the Budget Placed on the Agenda
The official committee report was first circulated to members just before 2pm on Friday, November 14. Minutes later, the Floor Leader made a motion to suspend the rules to place the joint committee report on the agenda for adoption. Several members, including Reps. Dave Apatang, Ed Salas, Ralph Torres, and I objected to the motion, and argued that we should at least have a chance to read the report before we take action on it. Nevertheless, the majority voted to suspend the rules, and the report was placed on the agenda.
Later in the session, the Speaker announced that the Senate had held a session and passed the conference committee’s bill. The Floor Leader also announced that he would be going off island for a week to accompany delegate-elect Gregorio Sablan to Washington D.C. and also to ”nurture relationships” with members of the U.S. House and Senate and to discuss the CNMI’s concerns with respect to federalization. Rep. Camacho is a member of the legislative task force on federalization. He requested that the House not act on the budget bill until his return. In response, Rep. Vic Hocog pointed out that every day of delay on the budget was costing the CNMI government. I pointed out that we would still have a quorum in the Floor Leader’s absence. It was unclear whether or not the Floor Leader’s request would be accommodated.
House Legislative Initiative 16-4, amending Article XII to extend the lease terms to 75 years, fails to pass in the House
Introduced by Rep. Heinz Hofschneider, this initiative proposed to extend the term permitted for transfer of leashold interests from 55 years to 75 years, to give the courts greater flexibility in determining whether or not land transactions in violation of Article XII should be voided, and to allow holders of existing leashold agreements to negotiate with lessors for the termination of existing leases and to enter into new leases. Seven public hearings were held on Saipan, Tinian, and Rota. According to the committee report, a majority of the comments submitted were in favor of the proposal.
The initiative that ultimately came to the House floor, however, initially proposed to both extend the lease terms permitted on private property from 55 years to 75 years as well as reduce the Northern Marianas descent requirement for corporations from 100% to 51%. Many members objected to the latter part of the proposal, observing that the NMD requirement for corporations had been the subject of litigation in the past, and had been changed to 100% during the 2nd constitutional convention for good reason. I was primarily concerned about lumping the two contentious proposals together in one initiative, and said that it would be better to divide the proposals into separate initiatives rather than ask voters coming to the polls to vote on both at the same time. Rep. Oscar Babauta then offered an amendment to remove the provision pertaining to corporations, and his amendment was accepted.
The House held a lengthy debate on this initiative. Members who opposed placing the initiative on the ballot argued that we should wait until 2011 to decide on the Article XII question as provided by the Covenant, and that the economic arguments in favor of amending Article XII were misleading, and land alienation laws had little to do with the present state of the CNMI economy. Members were also concerned about the legislative initiative process itself — although legislative initiatives require the endorsement of 3/4 of the members of both Houses, they only require a simple majority of the votes cast to pass. These members worried that ”outsiders,” citizens who are not of NMI descent, might ultimately be allowed by the courts to vote on the land alienation issue.
Proponents of the initiative pointed out that the majority of participants in public hearings supported the placement of the initiative on the ballot, said that new and longer lease terms would encourage existing businesses and other leasees to improve and renovate their properties, and give prospective investors one more reason to consider the CNMI as a place to do business, and that we should trust in the wisdom and intelligence of our people and give them the opportunity to vote on the measure one way or another. I pointed out that the initiative would not mandate 75-year leases or the termination of existing leases for that matter, but would simply expand the pool of potential leasees to property owners so that individuals who do choose to enter into new lease agreements can get a better deal for their land.
The initiative ultimately failed to garner the “yes” votes of 3/4 of the House, as required by the Constitution. Members who voted yes to the initiative were: Reps. Edwin Aldan, Oscar Babauta, Diego Benavente, Frank Dela Cruz, Heinz Hofschneider, Vic Hocog, Ray Palacios, Ed Salas, Stanley Torres, and myself. Members who voted no were: Reps. Dave Apatang, Joseph Camacho, Joseph Deleon Guerrero, Arnold Palacios, Joseph Reyes, Rosemond Santos, Ray Tebuteb, Ralph Torres, and Ray Yumul. Rep. Justo Quitugua was absent.
House Bill 16-110, HD1, officially establishing the CNMI Veterans Cemetery, passed in the House
Introduced by Rep. Yumul, this bill would officially establish the CNMI Veterans Cemetery by law, create a new Veterans Cemetery Revolving Fund, require the deposits of veterans license plate fees into the account to help finance the operations and maintenance expenses of the cemetery, and designate the Office of Military Liaison and Veterans Affairs as the official expenditure authority for the funds and as the primary agency charged with the responsibility of maintaining the cemetery grounds. Although construction of the cemetery has been completed since 2006, and the cemetery is now in use and governed by regulations promulgated in the Commonwealth Register, as yet there has been no official recognition by law.
The bill was reviewed by the Federal and Foreign Relations Committee in consultation with the Office of Military Liaison and Veterans Affairs, which is already managing the cemetery. All 18 members present voted yes to this bill. Reps. Heinz Hofschneider and Joe Reyes were absent.
House Bill 16-6, authorizing the assessment of parking meter fees, passed in the House
The bill proposes to give DPW the authority to construct, maintain, and operate parking meters, and to establish reasonable fees. Fees would be subject to local appropriation and shall be used for enforcement and maintenance related to parking meter administration. The Department of Public Safety would be responsible for designating areas along public roadways that would appropriate for the installation of parking meters, and for enforcing the time limits imposed by parking meters. All 18 members present voted yes to this bill. Reps. Heinz Hofschneider and Joe Reyes were absent.
House Bill 16-109, HS1, HD1, establishing a Military Family Relief Fund, passed in the House
This bill proposes to create a Military Family Relief Fund, supported funds generated by a new “Support our Troops” license plate, as well as any other donations or other contributions, to assist families of Commonwealth residents who are members of the reserve component of the U.S. Armed Forces or National Guard who are called to active duty. The Executive Director of the Office of Military Liason and Veterans Affairs shall be responsible for administering the program and promulgating necessary regulations. Proponents of the bill, including author Rep. Joseph Reyes, explained that similar programs exist in other states, and the new program would be funded by voluntarily-purchased “Support Our Troops” license plates, donations, or legislative appropriation.
The bill originally proposed also creating a new Veterans Cemetery Revolving Fund and diverting a portion of the fees from both the existing U.S. Armed Forces veterans license and the new Support Our Troops licenses to the Veterans Cemetery as well, but I pointed out a conflicting proposal in House Bill 16-110, which would also create the Veterans Cemetery Revolving Fund and proposed allocating all of the veterans license plate fees to the cemetery. I offered an amendment to delete all references to the Veterans Cemetery and the amendment was accepted. All 17 members present voted yes to the bill; Reps. Edwin Aldan, Justo Quitugua, and Vic Hocog were absent, as they were attending the joint conference committee meeting on the budget.
Senate Bill 16-34, HD1, amending 1 CMC Section 6103(a) of the Election Law, passed in the House
This bill proposes to remove the term limits imposed upon the Election Commission members (currently no more than two consecutive four-year terms). In reviewing the bill, the Special House Committee found that the relatively smaller communities of Tinian and Rota experience greater difficulty than Saipan in identifying qualified individuals who would be willing to serve on the commission, and that this difficulty could hamper the commission’s functions since the commission cannot meet and take official action unless there is a member present from all three senatorial districts. A review of policies in other jurisdictions revealed that some states and territories with election commissions impose term limits on members, while others do not. The Special Committee found that lifting term limits would be a logical policy call to make for the CNMI, and recommended the passage of the Senate bill, which was amended by the House committee for technical clarification. All 18 members present voted yes; Reps Diego Benavente and Joseph Reyes were absent.
House Bill 16-31, amending the Weapons Control Act to promote shooting resorts, referred back to Committee
The House Committee on Commerce and Tourism recommended filing this bill, citing primarily safety concerns associated with the proposed amendments to the Weapons Control Act and the proposed new industry, concerns which were expressed during public hearings on the islands of Saipan, Tinian, and Rota, and during the public comment period. Vice Speaker Joseph Deleon Guerrero, himself a member of the Commerce and Tourism Committee who had also signed the report, requested that the bill be referred back to committee for further consideration since it does, after all, offer a new idea that could facilitate economic recovery in the Commonwealth. Some members, including Reps. Diego Benavente, Ed Salas, and I objected to the motion, and pointed out that the committee had properly reviewed the bill, held public hearings, and put forth its recommendations, and the members should now vote one way or another on whether to file the bill. I said that the Commerce and Tourism Committee was hardly anti-investment, but that the members had felt compelled to weigh the need for new investment against legitimate safety concerns, and I cited in particular the concerns of then-Department of Public Safety Commissioner Clyde Norita, who had testified against the bill and said that his Department would not be capable of properly regulating the new industry and ensuring the safety of the community.
In the end, however, 13 members voted to send the bill back to committee, and only six members voted against the referral. The six members who voted no were Reps. Dave Apatang, Diego Benavente, Frank Dela Cruz, Vic Hocog, Heinz Hofschneider, Ed Salas, and Arnold Palacios. Rep. Joseph Reyes was absent. The Speaker then ruled that the bill would be referred to the “Committee of the Speaker.”
House Bill 16-52, to permit a CDA borrower to assign land compensation due from the government to pay for the balance on the CDA loan, filed in the House
Introduced by Rep. Ray Yumul and seven others, this bill proposed to allow a borrower of CDA to assign land compensation due to the borrower from the government, to pay the balance on the CDA loan. Rep. Yumul argued that this bill would not mandate such agreements, but only provided one more option for borrowers and the government to settle their debts. Opponents of the bill, including Rep. Diego Benavente and I, said that CDA is not just any regular department of the government, but an autonomous agency and financial lending institution run by a board and executive director with their own fiduciary duties to uphold. The CDA board and director had strongly opposed this bill, pointing out that land compensation funds have always been uncertain and dependent on appropriations by the Legislature, that the bill could lead to a slippery slope of other similar offset situations, including judgments against the government, tax rebates owed to the people, and vendors not yet paid by the government, and that ultimately CDA could be bankrupted by such offset agreements. We agreed with Rep. Yumul’s argument that land compensation debts needed to be settled, especially in light of Judge Munson’s recent ruling that forced the Department of Public Lands to finally pay a claimant, but said that that CDA’s autonomy and fiduciary duties should be respected.
Rep. Hofschneider then suggested that the Commerce and Tourism committee explore policy options to provide relief to the growing numbers of CNMI residents who are facing foreclosure and who are also owed money by the government. He proposed imposing a stay on any seizures of property until the government pays its debts to such claimants.
The majority of the House members voted to file the bill.
House Bill 16-85, to provide for a liquid fuel tax holiday two days of every month, referred back to Committee
The Commerce and Tourism Committee had recommended filing this bill, introduced by Rep. Ray Yumul, because of the impact that it would likely have on the government’s revenue base. At the session, however, the Chairman and other members requested that the bill be referred instead to the newly-created Special Committee on Fuel, which consisted of members of both Commerce and Tourism and Ways and Means, for further review.
House Bill 16-39, HS1 to repeal and reenact the mechanics lien law, passed in the House
Introduced by Rep. Oscar Babauta and three others, this bill proposes to repeal and reenact the mechanics’ liens law by providing certain assurances required by title insurance companies doing business in the CNMI so that these companies would be more willing to issue title policies containing mechanics’ lien endorsements. Without such endorsements, banks and other lenders are reluctant to provide traditional construction financing to businesses and residents. The House Substitute incorporates certain provisions (mostly clarifying definitions) of a very similar bill that followed, HB 16-94, introduced by Rep. Justo Quitugua. All 19 members present voted yes to this bill. Rep. Joseph Reyes was absent.
House Bill 16-150, on the Managaha Landing Fee, passed in the House
Introduced by Rep. Dave Apatang and six others, this bill proposes to change the Managaha Landing Fee to a Managaha Departure Fee; to strip the Department of Public Lands from its authority to collect such fees and give that responsibility to the Department of Lands and Natural Resources; and to clearly establish the authority of the Saipan and Northern Islands Legislative Delegation to appropriate such funds. The present law stipulates that such funds shall be used for a performing arts center, the Department of Public Lands, the Commonwealth Museum, youth programs, Indigenous Affairs, and Carolinian Affairs. According to some veteran legislators, however, those funds have been held essentially hostage by the Dept of Public Lands, pursuant to an Attorney General’s opinion (of which no one had a copy that day) that the Legislature had no right to appropriate those funds Rep. Hofschneider raised questions about the practical implementation of the law, if departure fees would be collected at various ports around Saipan, rather than collected at the point of arrival on Managaha, but Rep. Quitugua and others said that the departure fee could be collected at Managaha before passengers return to Saipan. Rep. Hofschneider said the enactment of this bill into law would provide a good test case for the courts to determine who has authority to those funds.
I asked the members not to vote on the bill that day, and said that there was no reason for us to rush the passage of the bill. I said that if the intent of the legislation was to clarify the Legislature’s position on some rather complex legal and constitutional issues involving public lands and fees associated with public lands, and also to provide a “good test case” for the courts, then these positions should be properly articulated and documented in a committee report, including a response to the AG’s opinion. I also noted that the bill had never been subject to review by the Natural Resources Committee, nor had comments been officially solicited from the affected agencies.
Nevertheless, the bill passed in the House with 16 members voting yes. The only two members to vote no were Rep. Ed Salas and myself. Reps. Diego Benavente and Joe Reyes were absent.
House Bill 16-58, establishing the Higher Education Commission, passed in the House
Introduced by Rep. Justo Quitugua and three others, this bill proposes to establish the Higher Education Commission, pusuant to the passage of House Legislative Initiative 15-1. The initaitive relieved the Northern Marianas College Board of Regents of licensing responsibilities over post-secondary educational institutions, and created a new Higher Education Commission to take on that responsibility. The bill requires that members on the commission shall serve in a voluntary capacity and be appointed by the Governor, and subject to confirmation by both the Senate and the House. Commissioners shall be registered voters, U.S. citizens, possess a Master’s degree from a U.S. accredited college or university, and have at least five years of related work experience. All 18 members present voted yes to the bill; Reps Diego Benavente and Joe Reyes were absent.
House Bill 16-168, providing for the lateral transfer of Division of Immigration personnel to other agencies, passed in the House
During the morning half of the session on Friday, November 14, the House held a meeting with Division of Immigration Director Mel Grey and his staff to discuss their concerns with respect to the transition from local to federal control of immigration, and the uncertain status of 68 local immigration personnel. Mr. Grey expressed his dismay at the unresponsiveness of the Department of Homeland Security to his suggestions and repeated requests for information, including inquiries related to the implementation of the transition to federal control, the presence of enforcement personnel on Tinian and Rota, and the hiring preference granted to qualified CNMI residents applying for federal immigration jobs under U.S. Public Law 110-229. Other concerns expressed involved the future livelihoods of local immigration personnel who might be displaced by the transition, some of whom would be ineligible for federal jobs because they are over the age of 37, some of whom are eligible to retire but unable to do so because of deficient employer contributions, all of whom have families to take care of.
Many House members assured the immigration staff that they would be taken care of, that there was a bill to provide for their lateral transfers within the CNMI government in the event that they would not be picked up for federal jobs, that would allow them to retain their current salaries and benefits, and that they would also be provided for in the FY 2009 budget bill. I expressed concern about whether or not the government was even in a position to promise such jobs to the staff, especially considering that virtually every government employee is anxious about future salary cuts or furloughs at this time. I also requested more information from Mr. Grey about the number of immigration personnel, positions held, the number of years worked, salaries earned, and an indication of whether or not these individuals would qualify for federal immigration jobs. Later in the hearing one immigration staffer expressed his frustration with both the local and federal governments, complained about some officials’ concern for contract workers, and said that the 68 immigration personnel were all voters and represented 68 local families who also deserved concern. He also, however, asked if the local government could even afford to guarantee lateral transfers
Some members asked if the Governor’s lawsuit might have anything to do with the Department of Homeland Security’s lack of responsiveness to the Division of Immigration’s inquiries. Mr. Grey said that he doubted it, but many of us remained unconvinced. Rep. Diego Benavente said that the newly-created legislative task force on federalization would formally follow up on the concerns expressed by Mr. Grey and thus far ignored by the federal agencies, and requested copies of Mr. Grey’s correspondence with Homeland Security and others.
In the afternoon, we took up House Bill 16-168 for action. I reiterated my concerns about misleading the immigration staff and promising jobs that the government might not be able to afford, and said that there was no reason to rush action on the bill that day, considering that the legislative task force was still gathering information from the Division of Immigration and also considering that the implementation of federalization would not take effect for at least another 7 months. Rep. Apatang said that I should care about the families of these immigration staff and argued that providing their lateral transfers would have no impact on the government because these positions have already been budgeted for. I responded that my concerns about the bill had nothing to do with not caring about the staff, but about raising false hopes about what the government could actually afford, and pointed out that we had just adopted a joint committee report on the budget that estimated a $9million shortfall from FY 2008, that the government was presently operating on a deficit, that we owed enormous and mounting debts to the Retirement Fund, that we were liable for numerous judgments against the government, and that we really had little choice anymore in the matter of salary reductions and furloughs. I also said that I am concerned not only about the immigration staff, but about all government employees who also have every reason to feel anxious during these times of serious fiscal difficulty. The Speaker interrupted at that point and admonished me to “calm down.” I said that if I become passionate in debate it is because the CNMI is in a very real crisis, and we should, for once, be honest with our people about it and refrain from misleading them.
Rep. Ed Salas offered an amendment to require that immigration employees should be laterally transferred to positions for which they are qualified. The amendment was accepted.
In the end, however, 17 members voted yes to this bill; I was the only member to vote no. Reps. Diego Benavente and Joseph Reyes were absent.
House Bill 16-12, HS1, to repeal and reenact the Foreign Retiree Investment Certificate law, placed on calendar
The Commerce and Tourism Committee produced a report recommending the passage of HB 16-12, HS1, and the report was adopted by the House. I objected to the adoption of the report that day, and noted that the bill had been recalled from Committee and placed on the calendar some months ago, then referred back to the Commerce and Tourism Committee for further review after a substitute bill was introduced. The Commerce and Tourism Committee, I noted, had not actually met to review the bill, and I also noted deficiencies in the report itself, including a lack of explanation for some key amendments that had been made, such as the proposal to lower the age of foreign “retirees” from 55 to 35. Rep. Joseph Camacho said that the House had already established that a committee report is considered duly adopted if it is signed by a majority of the committee members, whether or not the committee had met, and said there was no need to rehash old arguments. His comment, however, did little to address the deficiencies in the report itself.
Nevertheless, the majority of the House members voted to adopt the report. The bill has now been placed on the bill calendar for action.
House Bill 16-192, to include Managaha Island in the exemption of tourist areas exempt from the alcoholic beverage prohibition on Election Day
Introduced by Rep. Rosemond Santos and passed on first and final reading that day, this bill amends the recently-passed Public Law 16-18 to include concession stands on Managaha Island in the list of areas exempt from the prohibition on sales of alcohol on Election Day. That list presently includes airports, hotels, hotel resorts, and golf courses. Seventeen members voted yes to the bill, I abstained due to a possible conflict of interest, and Reps. Diego Benavente and Joseph Reyes were absent.
Gov. Communications re certifications of vacant positions of “vital importance”
The CNMI government is operating on a deficit, suffered a shortfall of an estimated $9million at the end of FY 2008, is likely to be held immediately liable for more judgments against the government and debts to the Retirement Fund, is considering salary and personnel reductions, and still, bewilderingly, hiring continues virtually unchecked. I noted with both great interest and dismay that the Governor has, in the last few weeks certified such positions as “PIO Assistant,” “Mayor’s Departmental Assistant,” “Special Project Assistant,” “Community Development Specialist” for the Governor’s office as vacant and of “vital importance for the efficient delivery of essential public services,” in some cases even waiving the requirement to announce the positions. Why?
Misc. Communication 16-56, Saipan Chamber of Commerce endorses marine sanctuary in the CNMI
In a letter to Council on Environmental Quality Chairman Mr. James Connaughton, Saipan Chamber of Commerce President Jim Arenowski extended the support of the Chamber board to the effort to work with the CNMI government in order to designate a marine sanctuary in the Northern Mariana Islands.
In his comments on the letter, Rep. Diego Benavente urged for the members to maintain their opposition to the proposed marine national monument and noted recent media reports that had revealed that Vice President Dick Cheney and others had expressed concern about the proposal, and sympathy for the opposition expressed by many of the CNMI’s elected officials with respect to the monument. He suggested that members draft a resolution to thank the Vice President and reiterate opposition to the proposal; Floor Leader Joseph Camacho said that he was willing to work with Rep. Benavente on such a resolution.
This is to announce that the Senate will be having a session this Thursday, November 6 @ 10am in the Senate Chamber. Click here for the draft agenda.
Also, here are the highlights from the House sessions held last Thursday, October 23 and last Friday, October 31 in Rota:
Senate Budget Bill Rejected — Joint Conference Committee Formed
The House members present unanimously voted to reject the Senate’s version of the Fy 2009 budget, in order to go into a joint conference to come up with a compromise bill. The House members assigned to the joint conference committee were Reps. Vic Hocog, Edwin Aldan, and Justo Quitugua. The Senate members assigned to the committee were Sens. Maria Pangelinan, Paul Manglona, and Joseph Mendiola.
Some members objected to the Senate’s action in simply substituting their version of the budget wholesale, and said they felt insulted by Senator Pangelinan’s comments in the media to the effect of, “the Senate has done its job” — which presumably some members interpreted to mean that the House had not. I did not share my colleagues’ feelings of insult, and expressed appreciation for the enormous work and careful attention to detail that had gone into the Senate’s budget bill. I had disagreed with the House leadership’s decision to create “lump sum” budgets and to grant exorbitant reprogramming powers to the Governor. The Senate’s approach, I thought, was more responsible, and essentially set a new standard for governmental budgeting that I hope present and future legislators will follow.
Particular provisions in the Senate’s bill that I favored included: 1) the elimination of vacant FTEs; 2) specific appropriations for utilities, from which funds cannot be reprogrammed for any other purpose; 3) correction of mathematical errors discovered in the Governor’s budget proposa; 4) the creation of one central government pool for Retirement Fund employer contributions, that would allow government employees who are eligible to retire to do so regardless of the department or agency for which they work — provided, of course, that funding is actually available in that pool; and 5) the effort to shift the Dept of Labor’s focus to assisting citizens and residents in finding employment in the private sector, beginning with assessments of the citizen and foreign national workforce.
Some of the concerns about the bill that I cited during the deliberations included:
I also asked that the joint conference committee consider in its compromise bill the shortfall in resources that may have occurred by the end of FY 2008, and seek an update on projected revenues for FY 2009, and that public health (the Dept of Public Health, including the hospital and associated clinics); public safety (Dept of Public Safety, Corrections, the Attorney General’s office, etc.), public education (the Public School System and the Northern Marianas College), the Retirement Fund, and CUC are properly prioritized for funding – everything else should be considered secondary and either cut or zero-funded. I also requested that joint conference committee meetings be open to the public, and that the committee be granted subpoena powers, noting the Senate Committee’s report that numerous agencies had failed to respond to its inquiries.
At the session on Rota last Friday, Rep. Hocog noted that the joint conference committee hopes to have a compromise bill ready for review by this Friday, November 7.
Appropriations Bills Passed in the House
1. HB 16-165, SS1 — appropriating $367,000 from the 3rd Senatorial District’s Developers Infrastructure Tax, $86,000 of which would go to parking lots for Kagman High School and Koblerville Elementary; $15,000 of which would go to the rehabilitation of the Kagman II baseball field; $10,000 of which would go to the Veterans Cemetery for improvement and upkeep; $107,000 of which would go to the paving of Tangantangan Road; $104,000 of which would go to the upgrading of water lines in Dandan; and $45,000 of which would go to the paving of the road at Northern Marianas College. This bill from the Senate proposed a significant increase from the original House proposal (which had appropriated $111,000, and had not included the road paving projects).
During the discussion I noted that we had earlier in the session rejected the Senate’s version of the budget, that we had still failed to pass a budget for FY 2009, and that we were contemplating painful cuts, including austerity holidays and layoffs. It seemed incongruous to me to then move on, less than an hour later, to appropriations for mostly pet projects, more than tripling the expenditures that had been originally proposed, and with little time for proper review. Rep. Hofschneider said that it would be wrong to hold off on worthy projects such as the baseball field rehabilitation, noting that activities such as baseball help keep kids off of drugs — a commonly-cited justification for public funding of baseball that I have heard before in the Legislature, but which does little to explain why we apparently favor baseball above other sports that our children play. Rep. Hofschneider also pointed out that the Developers Tax funds cannot be used to supplement salaries anyway, at which point I interjected and said that I had never suggested such a thing, but was only urging that we seriously and sensibly prioritize projects funded by the Developers Infrastructure Tax and the poker licensing fees, and that we take the time to review such bills and verify that funds were actually available.
A visibly-irritated Rep. Apatang then admonished me to “wake up,” and said, among other things, that all of the projects proposed were important to our constituents, that some politicians once elected forget the promises they made and only sit and wait at pavilions waiting for people to show up rather than going to the people directly, and that I should not go on Harry Blalock’s Tuesday radio show just to say that I am “the only legislator working” on the hill. Although this was hardly the first time that Rep. Apatang had lost his temper on the floor, even I was startled by this latest outburst, and the Speaker finally interrupted and called on Rep. Ray Palacios. Rep. Palacios remarked that each legislator has projects that are important to him or her, and urged me to offer my own projects for funding for the members to consider. The Speaker then ended the discussion and called for the roll. I was the only one to vote no to this bill. Reps. Frank Dela Cruz and Rosemond Santos were absent.
2. HB 16-129, HS1 — to appropriate the Tobacco Control Funds for FY 2009, passed by the House during the Rota session. The author of the bill, Vice Speaker Joseph Deleon Guerrero, explained that most of the programs listed in the bill are presently dependent on the Tobacco Control Fund, and that bill was based on funding requests and budget proposals from the Dept of Public Health and the Public School System. $900,000 would go to the Dept of Public Health, for the Diabetes Prevention and Control Program (535,000), the Community Guidance Center’s Mental Health and Substance Abuse Services ($250,000), mammogram film reading and interpretation ($39,000), the purchase of a Network Attached Storage for the Cancer Registry ($1,000), the Cancer Coalition ($50,000), and the Comprehensive Cancer Control Program ($25,000). $325,000 would to go the Public School System for the development of a comprehensive school health education program, for Project Familia, and for the Teen Talk program. In addition, $39,000 was set aside for the youth centers on Saipan, and $75,000 each to Rota and Tinian’s Tobacco and Substance Abuse prevention programs at their respective health centers.
I inquired about the status of another bill that had been passed recently from the House, HB 16-120, introduced by Rep. Justo Quitugua, which proposed to fund PSS’s comprehensive coordinated school health education program out of the Tobacco Control Fund, and which now sits in the Senate committee for review. The Vice Speaker explained that the Senate was anticipating the passage of HB 16-129 and in that event would not act on HB 16-120. The Vice Speaker also noted that most of the funding that had been originally proposed for the PSS program in HB 16-120 was preserved in HB 16-129 (originally $350,000; now $325,000) and Rep. Quitugua said this amount was acceptable. The reporting requirement in HB 16-120 had been somewhat more stringent– however, Rep. Quitugua agreed that the bill in its present form should be passed, and added that he would consider possible amendments to suggest to the Senate that might strengthen the reporting requirement.
All 14 members present voted yes to the bill.
3. HB 16-182 — appropriating $250,000 from the interest earned on Commonwealth Development Authority bonds, for perimeter fencing and other infrastructure improvements at Sinapalo Elementary, and $150,000 for new tractors for the Department of Lands and Natural Resources of Rota, introduced by Rep. Vic Hocog during the Rota session. The funds had originally been appropriated for Rota’s Route 100 paving project; that project has been held up for several years now due to land compensation and endangered species issues.
I did not object to funding facility improvements for Sinapalo Elementary (the principal had clearly articulated major problems with the school’s facilities during the presentation earlier that day), though I was less clear about the need for brand-new tractors. My overarching concern about this bill, however, had to do with the source of funding. During our lunchtime recess, I spoke to officials from both the Dept of Public Works and the Commonwealth Development Authority. Officials at both agencies confirmed that there was “probably” still money left from the Rota road project, but that they would need additional time to verify the amounts. Dept of Public Works officials also noted that there might be less than $400,000 available, as certain contract obligations had not yet been closed out. I brought this to the attention of the members when we reconvened, but Rep. Hocog said that he had received his own assurances from the same agencies that the funding was in fact there in the amounts being proposed for appropriation. I suggested that the House not act on the bill immediately, and that we take additional time to verify the funding that was actually available for these projects. Rep. Hocog objected, however, and said that if there were in fact insufficient funds available, he was confident that the Governor would catch the error and not sign the bill into law. I remarked that we should not wait for the Governor to do what we should be doing ourselves. In the end, twelve members voted yes; Rep. Salas and I voted no.
Action on Other Bills (During the Rota Session)
Note: Fourteen members attended the Rota session, including myself. Absent were Reps. Dave Apatang, Oscar Babauta, Diego Benavente, Heinz Hofschneider, Joe Reyes, and Stanley Torres.
1. HB 16-145, HD1 — to mandate that the government prioritize payments of the employer contributions of government employees who are eligible to retire. This bill was laid on the table until the next session. The Floor Leader requested that the Health, Education, and Welfare committee consult with the Retirement Fund first on the bill.
2. HB 16-135 — to establish a Commonwealth Autism Commission to develop a state plan to guide services for individuals with autism spectrum disorders. During the discussion, I requested clarification on some provisions of the bill that seemed to be ambiguous, including the appointing authorities for each of the entities that would be represented on the Commission, and reimbursement for reasonable expenses of the Commission (the bill provides that such reimbursement would be “decided equally” among the House, Senate, and Executive Branch). The Chair of Health, Education, and Welfare committee, Rep. Ralph Torres, requested that the bill be laid on the table until the next session to give the committee additional time to review the bill, and so that the author of the bill, Rep. Hofschneider, could participate in the deliberations.
3. HB 16-108 — to restrict the application of disaster emergencies; disaster shall not include “government financial crisis or financial hardship.” Introduced by Floor Leader Rep. Joseph Camacho in the midst of a series of gubernatorial disaster emergencies declared on the Commonwealth Ports Authority to avert a technical default on a bond indenture agreement. I had voted against this bill the first time because I thought that it was ambiguously written; the Senate’s offered a minor amendment to the bill that did little to clarify the language of the bill. Despite my objections to the litany of questionable emergency declarations and clear abuses of power during this governor’s term, I worried about future, more prudent governors being unduly hampered by the restriction in the event of some unforeseen and serious threat to the public welfare that could be caused by financial hardship. Moreover, if the driving force behind this bill is the belief, bolstered by mounting evidence, that the governor is abusing his power and ruling by executive order, then the Legislature already has other effective avenues available, not least of which is impeachment, that will address the problems raised by the actions of the present governor, without unduly tying the hands of future governors.
4. HB 16-187 – to amend Section 7(a)(2) and repeal and reenact Section 7(c) of the Rota Casino Act, introduced by Rep. Vic Hocog that day. The bill proposes to authorize the Rota Casino Gaming Commission to utilize funds collected from casino licenses and fees as necessary without the restriction, which currently exists, that requires that casinos that are not ready to open at the time of payment of fees, shall have their fees held in escrow by the Commission or until three years have lapsed from the date the license was issued, whichever occurs first. Rep. Hocog argued that this requirement was an unnecessary and unjustified burden. The bill also proposed to amend the Rota Casino Act so that it would comply with the existing tax code, specifically relating to the gross revenue surtax and gambling revenue tax. Currently, the Rota Casino Act imposes a 10% tax on gross gaming revenues, which the House legal counsel explained is inconsistent with the CNMI’s existing tax law. If the bill is signed into law, Rota’s tax laws relating to casinos would be the same as Tinian’s. All 14 members present voted yes on this bill.
House Resolutions Adopted
1. HJR 16-15, HS1 — introduced by Rep. Joseph Reyes, this joint resolution requests that U.S. Congress cause to establish a U.S. Veterans Affairs Community-Based Outpatient Clinic and a Benefit Office, to serve all CNMI veterans and their dependents.
2. HJR 16-20 — to establish an ad hoc legislative task force on federalization, the members of which will be appointed by the Speaker and the Senate President.
3. HR 16-59 — recognizing Kinki Nippon Tourist Co. for winning the prestigious Tour of the Year 2008 award, presented by the JATA Executive Committee
4. HR 16-60– requesting that the Governor issue a full and detailed report to the Legislature on actions taken and funds used to address the disaster emergencies described in numerous Executive Orders, and to present a plan to the Legislature, including a financial strategy, for addressing the present state of disaster emergency, declared on October 8. The resolution notes that the situation at CUC appears to be worsening despite nearly three years of the utility being under the direct control of the Governor, that the Governor has failed to present a plan to the Legislature to address the management, operational, and infrastructural challenges facing CUC, that the Governor has also failed to deliver full and detailed reports on the funding that has been diverted to cope with the emergencies, and that the Governor has essentially resorted to rule by executive order, suspending all pertinent statutes and regulations to deal with alleged emergency conditions, with no sign of planning.
5. HR 16-61 — recognizing and commending Mr. Kim Prinz, President of the Commonwealth Health Center Volunteer Association for her unitiring dedication and selfless contributions as a CHC volunteer for over 18 years.
6. HR 16-62– asking the Commonwealth Development Authority Board to deny granting additional benefits to the existing Qualifying Certificate for Saipan Laulau Development, Inc. Introduced by Rep. Ray Yumul at the Rota session, the resolution expresses objection to the granting of any additional QC benefits for the Laulau development, as well as objection to the Governor’s personal intervention on behalf of Saipan Laulau Development Inc., in appealing to the CDA Board to reconsider the QC. The resolution was laid on the table to allow for further review, and Rep. Yumul has since called in the CDA Executive Director and economic analyst for a meeting with legislators to discuss the strengths and weaknesses of the QC program generally, and the CDA Board’s on-going efforts to amend its regulations in order to accommodate requests for QC reconsideration.
Action on Standing Committee Reports (Rota Session)
1. SCR 16-47 – recommending the filing of HB 16-31 (to promote and allow shooting resort developments); HB 16-52 (to permit a borrower of the Commonwealth Development Authority to assign land compensation due from the government to pay for the balance on the CDA loan); HB 16-95 (liquid fuel tax holiday two days out of every month); and HB 16-94 (to repeal and reenact the mechanics’ lien law). The members voted to refer this bill back to the Commerce and Tourism committee, and requested that the reports on each bill be separated rather than lumped together. Rep. Yumul in particular objected to the recommendation to file HB 16-95, which he had introduced, and said that the committee did not adequately justify its recommendation.
2. SCR 16-48 – recommending the passage of HB 16-39, repealing and reenacting the mechanics’ lien law, and incorporating certain provisions from a very similar bill, HB 16-94. This report was adopted.
House Comm. 16-76 – Natural Resources Committee Asks Dept of Public Lands for 10-Yr Financial Report
In a letter dated Oct. 9, 2008, Natural Resources Committee Chair Rep. Ray Tebuteb asked Public Lands Secretary John del Rosario for a complete ten-year financial accounting report, from 1998 to 2008, of all funds received from public lands and the disposition of such funds, including all funds received, the source of such funds, disposition of such funds for each year, amount transferred to the Public Lands Trust pursuant to Article XI of the Constitution, and all amounts held in checking accounts, savings accounts, TCDs, and any other financial account and institution. The Committee has requested a response from DPL by October 31, 2008.
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For questions or comments, I can be reached at 664-8931 or 285-3935, or by email at tinasablan@gmail.com .
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