Here are the highlights from the House sessions held on May 8, 12, and 19:
BILLS INTRODUCED ON THE FLOOR (NOT ON AGENDA)
- HB 16-244 — to require all taxicabs operating in the CNMI to be uniformly colored "Safety Yellow." (Rep. Rosemond Santos)
- HB 16-245 – To replace the subsistence allowance established for the Legislative Branch with the standard government travel processing and rates and to lower the housing allowance established for the Legislative Branch; and for other purposes. (Rep. Rosemond Santos)
- HB 16-246 – to authorize the governor to transfer $3,350,000 for the Non-General Revenue Resources for FY 2010 for the Northern Marianas Trades Institute ($300,000); Karidat ($50,000); and deficient employer contributions to the Northern Marianas Retirement Fund ($3,000,000) (Introduced by Rep. Justo Quitugua +1)
- HB 16-247 – to amend Public Law 16-39 to clarify that funds allotted from the Tobacco Control Fund shall be continuously appropriated prospectively and proportionately, provided further that appropriations under PL 15-109 shall not be affected and shall remain intact. (Introduced by Rep. Joseph Deleon Guerrero) PASSED IN THE HOUSE (see below)
- HB 16-248 — to repeal and reenact 4 CMC Section 1301(a) to exempt businesses with an annual total gross revenue of less than $50K from paying gross revenue tax, with additional adjustments to the tax schedule for businesses grossing more than $50,000 (Rep. Joe Reyes)
- HLB 16-35 — to appropriate $3,650,000 from the revenues collected pursuant to Saipan Local Law 11-2 as amended for FY 2010, including $3M for the Saipan Higher Education Financial Assistance Program; $100K for SHEFA operations; $50K for the CNMI Little League; $25K for the Fishing Derby; $75K for the Saipan Zoning Office; $15K for the Agricultural Fair; $100K for the Northern Mariana Islands Trades Institute; and $285K for road paving in Kagman (Rep. Justo Quitugua +1)
SENATE AMENDMENTS ON HB 16-47, HD2 (SMOKE-FREE AIR ACT OF 2008) REJECTED — HOUSE MOVES FOR CONFERENCE COMMITTEE
The Senate amended HB 16-47, HD2 to prohibit smoking in outdoor areas within 15 feet of any doorway entrance or exit to a government facility and within 15 feet of any person who is not smoking if the place or site of work is an outdoor area; to mandate that employers, employees, or any person acting on behalf of an employer shall have a duty to report violations to the Dept of Public Health; and to allow businesses to apply for a partial exemption or full exemption for an annual fee of $2,000 or $10,000, respectively.
Most of the House members' objections to the Senate amendments centered on the exemptions, which many of us felt would defeat the purpose of the bill. The purpose of the bill, most of us agreed, was to enact a smoke-free policy in public places in order to promote public health, not to generate revenue for the government through additional fees. According to Health, Education, and Welfare Committee Chair Rep. Ralph Torres, there was strong public sentiment against the exemptions as well: his office had received dozens of letters from concerned citizens in recent weeks, all urging for the removal of the exemptions. Fifteen House members, myself included, voted to reject the Senate amendments and move for a conference committee. Reps. Dave Apatang, Stanley Torres, Vic Hocog, and Ed Salas were absent. Rep. Joe Reyes abstained. The Speaker appointed Reps. Ralph Torres, Joe Reyes, and Justo Quitugua to be the House conferees.
SENATE AMENDMENTS ON HB 16-179, HD1 (AMENDING THE PROBATION REFORM ACT) REJECTED — HOUSE MOVES FOR CONFERENCE COMMITTEE
House Bill 16-179, HD1 proposed to amend and repeal certain sections of Public Law 15-46, the Probation Reform Act, in order to clarify certain provisions that were duplicative and confusing. The Senate added a rider to amend the Weapons Control Act, proposing to add a late renewal fee to the list of of fees for firearms licenses and identification cards. Rep. Rosemond Santos, the author of the bill, objected to the amendment because it had little connection to the content of the original bill, and moved to reject the Senate amendment and initiate a conference committee. The members agreed, and the Speaker appointed Representatives Rosemond Santos, Joseph Reyes, and Diego Benavente to be the conferees for the House.
BILLS PASSED
1) HB 16-243 — to amend Public Law 16-32 (FY 2009 budget) to reprogram $206,394 from the Marianas Visitors Authority's non-personnel appropriation to its personnel appropriation, provided that none of the funds reprogrammed shall be used to hire new personnel or increase the compensation of existing personnel. According to MVA Managing Director Perry Tenorio, the Legislature had increased MVA's operations budget by approximately $1.4M, and the requested reprogramming amount would help retain existing personnel for the remainder of the fiscal year without adversely affecting MVA operations. Introduced by Rep. Ray Yumul, at the request of the Marianas Visitors Authority Managing Director Mr. Perry Tenorio, this bill passed with all 17 members present voting yes. Reps. Justo Quitugua, Ray Palacios, and Ed Salas were absent.
2) HB 16-247 — to amend Public Law 16-39 to clarify that monies deposited in to the Tobacco Control Fund shall be continuously appropriated prospectively and proportionately, provided further that the appropriations under PL 15-109 (the Teacher Education Scholarship and the Medical Professional Scholarship) shall not be affected and shall remain intact. The Governor had signed the bill into law with reservations, noting that the bill had been given to him six months into FY 2009 and that moneys previously appropriated under Public Laws 14-80, 15-65, and 15-109 had already been allotted for the first two quarters of the fiscal year, and urging that the the Legislature should immediately pass amendments that would clarify PL 16-39 as described above.
Members requested that an audit of the Tobacco Control Fund be conducted, since there was much confusion about how much funding is actually available, and what programs appropriated for under Public Laws 14-80, 15-65, and 15-109 were affected by PL 16-39. Rep. Ray Yumul agreed to undertake such an investigation; Senator Pangelinan, the chair of the Senate Fiscal Affairs Committee, has also formally requested the Public Auditor's assistance in auditing this fund.
3) HB 16-240 — to amend the Alcoholic Beverage Control Act to reduce bureaucratic burdens imposed on licensees conducting sampling of alcoholic beverages. This bill had been recalled from the Commerce & Tourism Committee at the request of Rep. Stanley Torres, the author of the bill, who insisted that the bill was simple, straightforward, helpful to businesses, and should be passed right away. The bill had been introduced on April 16, 2009, and had subsequently been referred to the committee, but then recalled for action on May 12, 2009. I informed the members that the committee had sent out requests for comments on the bill to the business community, and had asked that comments be submitted by May15, 2009; I also said that I was aware that comments had been received thus far, and there might still be more in the next few days. Rep. Heinz Hofschneider, who supported the intent of the bill, then recommended that the members should defer action for at least three more days, out of respect to the stakeholders who had been asked to comment on the bill. For some reason however, the majority of the members did not want to wait at all, regardless of how much of an act of bad faith it would be against the constituents who had been asked for comments. A few members actually said that any comments received could be forwarded to the Senate for their consideration.
In the end, the bill passed, with only Reps. Edwin Aldan and Heinz Hofschneider voting no. I abstained due to a possible conflict of interest or appearance of impropriety. Reps. Justo Quitugua, Joseph Reyes, Ed Salas, and Vic Hocog were absent.
4) HB 16-242, HD1 – Introduced by Rep. Rosemond Santos, this bill proposes to transfer the functions of the Office of Victims' Rights from the Criminal Justice Planning Agency to the Office of the Attorney General. According to Chief Prosecutor Kevin Lynch, who came to the Legislature to testify in support of this bill, the Office of the Attorney General is the most appropriate agency to provide assistance and support services to victims, and indeed is already providing such services. Placing victim support services within the Office of the Attorney General is a standard practice in most jurisdictions, is already a matter of practice in the CNMI, and would make it easier for the agency to apply for federal grants if the transfer was made officially by law.
All 17 members present voted yes to this bill, myself included; Reps. Justo Quitugua, Joe Reyes, and Ed Salas were absent.
5) HB 16-227 — Introduced by Rep. Vic Hocog, this bill would create an Office of Grants Management for the purpose of facilitating the establishment of a database of federal grants currently received, research of all federal grants the CNMI is eligible to receive, development of grant applications, and development of training programs for government staff in grant writing, grant management, and compliance with federal regulations and requirements. According to the committee report, SCR 16-88, the CNMI ranks among the lowest in direct federal expenditures when compared to other territories, and the creation of a centralized office for grants management and assistance would help to maximize the CNMI's ability to take advantage of federal grants for which we would be eligible.
All 17 members present voted yes to this bill, myself included. Reps. Justo Quitugua, Joseph Reyes, and Ed Salas were absent.
6) HB 16-241 – Introduced by Rep. Ray Yumul, this bill would clarify the specific sources of funds that are to be used for the transfers of qualified operational expenses of the Dept of Public Health which were authorized under Public Law 16-32 (FY 2009 budget). Certain active revolving accounts, the Tobacco Control Fund Collections, the Tobacco Settlement Fund Collections, and the Solid Waste Revolving Fund, and their projected available balances for FY 2009, were identified as sources of funds to be used for these Dept of Public Health expenses; however, $400,000 was also set aside to fund the Division of Immigration through to September 30, 2009.
All 18 members present voted yes to this bill, myself included; Reps. Vic Hocog and Ed Salas were absent.
ACTION DEFERRED ON SB 16-51, SD1 — To clarify that an individual may not serve in the capacity of Acting Attorney General for more than 30 days without a nomination, nor more than 90 days without confirmation.
Many of the members, myself included, were generally in favor of this bill, which aims to close a loophole that has allowed the current governor (and past governors) to avoid the Senate confirmation process for the position of the Attorney General, in circumvention of the Constitution and the law.
Passage of the bill was delayed, however, by concerns raised by Rep. Oscar Babauta about two provisions that he believed would create confusion: one section declared that actions taken by an individual acting as Attorney General in violation of the law (i.e., after 90 days without a Senate confirmation) would be null and avoid, and another which declared that the duties and functions of the Office of the Attorney General as set forth in the Constitution and in the law shall not be impaired and all actions by the Office of the Attorney General shall be valid and enforceable. Our legal counsel explained that the first section pertained only to contracts, purchase orders, and timesheets – that is, exercises of expenditure authority taken by an individual acting as Attorney General in violation of the law. The second section pertained to criminal prosections and legal representation of the Commonwealth – such would be considered valid actions of the Office of the Attorney General, regardless of the confirmation status of the person acting as Attorney General.
The members generally agreed that these two sections required further clarification, however, and decided to defer action. The Speaker the appointed Reps. Joe Camacho and Rosemond Santos to work with the House legal counsel on clarifying that bill.
HB 16-236 REFERRED BACK TO JGO COMMITTEE –To establish a criminal penalty for the Secretary of Finance and expenditure authorities of autonomous agencies for failure to remit to the Retirement Fund
Introduced by Rep. Ray Yumul, this bill proposes to amend 1 CMC Section 8362 to add a criminal penalty that would apply to the Secretary of Finance and the expenditure authority of each autonomous agency who fails to remit the required employer's contribution to the Retirement Fund. The bill would also require that employees should be notified in writing of the balance of their unpaid employer contributions, if any, each quarter, and that employees shall have a cause of action against the Secretary of Finance or the expenditure authorities of autonomous agencies for failure to remit employer contributions.
Members who had reservations about the bill said that the Secretary of Finance and expenditure authorities of autonomous agencies should not be the only persons to hold responsible for the dire state of the Retirement Fund. Rep. Diego Benavente said the Legislature was also to blame, and Rep. Oscar Babauta said that the Fund trustees should also be held liable for poor investment choices that resulted in huge losses to the Fund. Speaker Arnold Palacios and Vice Speaker Joe Deleon Guerrero both pointed out, however, that for FY 2009 the Legislature had actually budgeted for an employer contribution rate of 11% and that someone should be held liable for the failure to remit even the budgeted amount? Rep. Justo Quitugua said he would support the bill only if it added a criminal penalty that would apply to legislators too, and Floor Leader Joe Camacho then offered an amendment to waive legislative immunity for the Legislature's failure to fully fund the Retirement Fund. The Floor Leader's proposed amendment struck me as a bit odd, particularly since it was coming from an attorney, and I agreed with the Speaker's remarks that the 16th Legislature probably couldn't waive a constitutional protection by statute, and have that waiver actually mean anything for past or future Legislatures.
Rep. Rosemond Santos then pointed out that the bill had been recalled and placed on the bill calendar only one week after it had been referred to her committee, and she appealed to the members to allow her committee to do its work. The members agreed, and the bill was sent back to her committee for review.
ACTION ON STANDING COMMITTEE REPORTS
1) SCR 16-85, recommending the filing of House Resolution 16-42 — ADOPTED. Introduced by Rep. Stanley Torres, this resolution expressed concerns about the economic impact of U.S. Public Law 110-229, recognized the Governor's statement on June 24, 2008, and expressed support for the Governor's action to seek further legal advice before initiating any litigation challenging the Act in federal courts. The Committee on Federal and Foreign Relations deemed the resolution no longer relevant since the Governor has obviously already filed his lawsuit.
2) SCR 16-86, recommending the filing of HB 16-127 — ADOPTED. Introduced by Reps. Oscar Babauta and Ray Palacios, this bill proposed to amend 2 CMC Section 4324(c) to allow the Dept of Public Lands to review claims that may be qualified under 2 CMC Section 4323 on their merits by removing the time limitation provision established under 2 CMC Section 4324 (c). The Natural Resources Committee recommended filing the bill, because it had opted instead to incorporate that provision into a related homestead bil, House Bill 16-146.
3) SCR 16-87, recommending the filing of SB 16-42 – FAILED TO PASS. Introduced by Sen. Jude Hofschneider, SB 16-42 proposes to amend Public Law 15-2 to reinstate the board of directors to oversee the Department of Public Lands,while keeping the Department within the Executive Branch. The report submitted by the Natural Resources Committee recommended filing the bill, stating that a board for the Department of Public Lands should not be created while the Department is not autonomous, and that the language of the bill contained too many openhanded provisions (i.e., pertaining to compensation, travel costs, and per diem) and recalled the egregious abuses committed by the Marianas Public Lands Authority.
Some members, myself included, felt that it was premature to kill the bill, and that the proposal to reinstate a board of directors had merit, especially in light of our experiences with the current organizational structure of the Department of Public Lands which has given one person – the Secretary of Public Lands, a political appointee — significant power over the disposition and management of all of the Commonwealth's public lands. The Department of Public Lands, it was pointed out, has also come under fire for alleged abuses and is not more accountable nor more transparent than its predecessor. While I did not agree with the particular language of the bill, which was essentially the same language as the old law and did indeed leave too much room for abuse, I argued that that language could be strengthened to establish clearer guidelines, and that qualifications and duties of the board could be fleshed out more, similar to what was done in House Bill 16-9, CS1, the Healthcare Corporation Act, in order to help prevent the reinstatement of a board that would be overly politicized and overly involved in the day-to-day management of public lands. Vice Speaker Deleon Guerrero called for a comprehensive review of public lands management and policy; I agreed with his recommendation, and further recommended that there should be a public hearing on the bill.
In the end, the members who voted to adopt the report and file the bill were Reps. Ray Tebuteb, Stanley Torres, Oscar Babauta, Dave Apatang, Joseph Deleon Guerrero, Edwin Aldan, and Frank Dela Cruz. The members who voted against adopting the report and against filing the bill were Reps. Arnold Palacios, Diego Benavente, Joe Camacho, Vic Hocog, Heinz Hofschneider, Joe Reyes, Ralph Torres, and myself. Five members were absent: Reps. Ray Palacios, Rosemond Santos, Justo Quitigua, Ray Yumul, and Ed Salas.
4) SCR 16-89, recommending the passage of a substitute bill for SB 16-45 — ACTION DEFERRED. The Senate bill proposed to amend 4 CMC Section 5941(a) to abolish the security deposit requirement for long term business certificate applicants, finding that foreign investors who are subject to the requirement are unable to comply because of the unavailability of U.S. Treasury listed surety bonds in the Commonwealth (current law requires that security deposits be in the form of a bond issued by a U.S. Treasury listed surety company that is licensed to transact business in the Commonwealth and approved by the Insurance Commissioner). The House Committee on Commerce & Tourism recommended a substitute bill that would instead continue to require surety bonds, but allow surety companies to be U.S. Treasury listed, or simply "acceptable by the Commonwalth Insurance Commissioner."
I had not signed the committee report primarily because we had not given the Dept of Commerce or the insurance community the opportunity to review the substitute bill. The Dept of Commerce eventually did submit comments on the substitute bill, and they were generally not in favor of the House committee's recommendations because: 1) new regulations to define what would be "acceptable by the Commonwealth Insurance Commissioner" would take some time to develop and promulgate; 2) by the time these new regulations would be finalized, they might be rendered moot by the new federal immigration regulations that would take effect in November this year; and 3) most foreign investors in the CNMI are not presently subject to this security deposit requirement because they are short-term business permit holders, not long-term, and so even the new requirements, which are intended to reduce the CNMI's potential liabilities, would cover only a fraction of foreign investors. If the Legislature maintained that a security deposit was required, the Dept of Commerce suggested that a cash deposit should be considered instead of a bond, although they added that this requirement might be difficult for current long-term business certificate holders to meet as well.
5) SCR 16-90, recommending passage of HB 16-241, HS1 — ADOPTED. Introduced by Rep. Ray Yumul, HB 16-241, HS1 proposes to amend Public Law 16-32 (FY 2009 budget) to clarify which outside general fund sources the Department of Public Health qualified operational expenses are to be transferred to, and also to set aside funds to allow the Division of Immigration to operate through to September 30, 2009.
RESOLUTIONS ADOPTED
1) HR 16-81 — to request the Dept of Public Works to draft and adopt a Right of Way Manual establishing uniform standard guidelines and procedures for acquiring private property for public highways in the Commonwealth. (Rep. Vic Hocog)
2) HR 16-88 — Conveying the sincere condolences and sympathy of the House of Representatives to the bereaved family of the late Honorable Howard I. Macaranas on the occasion of his untimely passing and to pay fond tribute to his memory. (Rep. Edwin Aldan)
3) HR 16-89 — To commend and congratulate the Saipan Souther High School Manta Ray Band on their many achievements and outstanding performance at the 2009 Tumon Bay Music Festival. (Rep. Ralph Torres)
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