final - northern marianas commonwealth legislature · i senate bill 16-37 and 16-38 hereby placed...

FINAL

I

Senate Journal TENTH SPECIAL SESSION, 2008

SJ 16-16

First Day Thursday July 31,2008

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The Senate of the Sixteenth Northern Marianas Commonwealth Legislature reconvened in its First Day, Tenth Special Session, on Thursday, July 3 1, 2008, at 4:19 p.m., at the Senate Chamber, Saipan, Commonwealth of the Northern Mariana Islands to order.

President Pete P. Reyes, presided. ,

Moment of silent prayer was observed.

Senate Clerk called the roll. Seven members are present. Senator Paterno Hocog and Senator Jude , Hofschneider are absent, excused.

READING AND APPROVAL OF THE JOURNAL: (NONE)

1. Gov. Msg. No. 16-201: July 22,2008 - Certification for vacant position for one 1

Homestesid Director at DPL.

2. Gov. Msg. No. 16-202: July 22,2008 - Withdrawing the re-appointment of Mr. Manuel A. Sablan, to serve as a member of the CDA's Board of Directors representing Saipan.

3. Gov. Ms$. No. 16-203: July 25,2008 - Re-appointment of Mr. Manuel A. Sablan to serve as a member of the CDA's Board of Directors to represent Saipan.

4. Gov. Msg. No. 16-204: July 25,2008 - Executive Order No. 08-08 regarding Re- organization Plan No. 03 of 2008 and 02 of 2006 (EO 2006-4)

5. Gov. Msg. No. 16-205: July 28,2008 - Enclosing resume, statement of financial interests, ~ n d drug test receipt of Mr. Michael Pai appointed to serve as the Public Auditor. t

6. Gov. Msg. No. 16-206: July 30,2008 - Executive Order No. 08-09 Re-organization Plan No. 04 of 2008 and No. 02 of 2006 (EO 2006-04)

First Day, Tenth Special Session SJ 16-16

7. Gov. Msg. No. 16-207: July 30,2008 - Signed into law H.L.B. No. 16-13, Dl, entitled, "To appropriate $102,000 from the local license fees collected pursuant to 10 CMC $1901 (RLL 14-7)," become ROTA LOCAL LAW NO. 16-3.

8. Gov. Msg. No. 16-208: July 31,2008- CUC amended EO 2008-09.

President Pete Reyes: Before we proceed further, I would like the members' permission to go ahead and appoint Smator Manglona as the Acting Floor Leader.

Several members voiced, "no objection".

[Note: Senator Paul Manglona is the Acting Floor Leader for today's session.]

President Pete Revas: Any discussion on the messages from the Governor?

The Chair recognizes Vice President Felix Mendiola. I

Vice President Fe* Mendiola: Let me direct your attention to Governor's Message 16-205 in reference to Mr. Pai7s appointment as the Public Auditor. If you look at the supporting document-- the urinalysis specimen that is item 6 of the form--We are receiving a document that does not attest to the mandated urinalysis whether it is positive or negative. This particular document only proves that the urine sample was taken, but I think before the Governor submits this type document to us, it should be indicated on the form whether or not the test result is negative or positive. I just want the record to reflect of the need to for such document to reflect of the urinalysis test result (negative ar positive), and not just to indicate that urine samples were officially taken. Thank you, sir.

President Pete Reyes: Thank you. Good point and that is noted.

Communications from the Judiciary (NONE)

Communications from the Heads of Executive Departments

1. Dept. Msg. No. 16-35: July 1 1,2008 - Secretary of Labor regarding the Interim Progress Report #5 on the implementation of PL 15-1 08.

,

2. Dept. Msg. No. 16-36: July 17,2008 - Secretary of DPW on the Delegation of Authority to the Acting Energy Director to Ms. Lauren Sanchez.

3. Dept. Msg. No. 16-37: July 17,2008 - Secretary of DPW on the Delegation of Authority to the Acting Secretary to Mr. Joseph M. Inos, Jr.

I President Pete Reves: Any discussion from Heads and Executive Departments? None.

Communications from the House

SJ 16-16 July 3 1,2008

1. Hse. Comm. No. 16-100: June 20, 2008 - Representative Joseph Reyes request to OPA for an audit of the Saipan Liberation Day Committee and the Saipan Mayor's Office Liberation Day Committee Account.

2. Hse. Corn. No. 16-101: July 24, 2008 - Representative Stanley Torres concerns on the nominees to the CPA Board of Directors.

3. Hse. Comm. No. 16-102: July 29, 2008: Representative Ramon Tebuteb requesting from MPLT Board of Trustees Chairman minutes, explanation of MPLT decision on new office construction.

4. Hse. Comm. No. 16-103: July 29, 2008 - Representative Ramon Tebuteb to DPL regarding action on recommendations of the OPA.

5. Hse. Corn. No. 16-104: July 31, 2008 - Overrode the Governor's veto on S.B. No. 16- 19, SD1, entitled, "To amend PL 15-2 to codify its provisions as a new chapter 14 of Part 1, Division 2, Title 1 of the Commonwealth Code and to give mayors of each municipality, Saipan, Rota, Tinian and Aguiguan, and the Northern Islands an opportunity to affect the disposition of public lands in their respective municipality."

6. Hse. Cornm. No. 16-105: July 3 1,2008 - Accepted the amendments to H.B. No. 16- 77, HS1, HD6, SD1, entitled, "To allow and encourage CUC to engage the private sector to partner with the Commonwealth to secure reliable utility services at : affordable rates."

7. Hse. Comm. No. 16-106: July 3 1, 2008 - Transmitting for Senate action H.J.R. No. 16-12, entitled, "To request the assistance of the U.S. Department of the Interior in consolidating and directing Federal Grants for the CNMI to the CUC for the purpose of rehabilitating power plants in the Commonwealth under the oversight of the U.S. Army Corps of Engineers."

President Pete Rev~s: Discussion? None.

Communications from Washington Representatives (NONE)

Unfinished Business (NONE)

Pre-filed Bills and Resolutions

Chair recognized Floor Leader Manglona. I

Floor Leader Paul Manglona: Mr. President , we have Senate Bill 16-37: To reserve public : land in the areas known as Chalan Famalao'an and Pina areas on the island of Tinian for

First Day, Tenth Special Se$sion SJ 16-16

agricultural homesteads and commercial uses, and for other purposes. (SEN. JOSEPH M. MENDIOLA-07/29/08)

President Pete Reves: Thank you and we also have Senate Resolution 16-20.

The Senate recessed at 4:21 P.M. AND

The Senate reconvened at 4:25 P.M.

President Pete Reyts: Before we had a short recess, we were on discussion on the resolutions calendar.

Chair recognized Floor Leader Manlgona.

I Floor Leader Paul Man~lona: Thank you Mr. President. First, we have under Prefiled bills and resolution, Senate Resolution 16-20 as well as Senate Resolution 16-21 and Senate Bill 16- 37 and 16-38. At this point, Mr. President, I would to move for the passage of S.R. 16-20 requesting the immediate release and disbursement of all grants and scholarship checks for fall 2008 recipients by the CNMI Scholarship Office and the Saipan Higher Education Financial Assistance Program (SHEFA), for on-island and off-island students.

Several members seconded the motion.

President Pete Reyes: Motion has been made and seconded. Discussion? There being no discussion.

Motion was carried by voice vote.

President Pete Reves: Senate Resolution 16-20 has been adopted by voice vote.

Chair recognized Floor Leader Manglona.

I Floor Leader Paul. Manglona: Mr. President, we have S.R. 16-21 but I believe the clerk is ' making copies for the members so at this time, we will come back once those copies are provided

Mr. President. There's no further item under Resolution Calendar.

President Pete Reves: Is there any objection from any member to place S.B. 16-37 on today's calendar? Being there's no objection.


Floor Leader Paul .Mandona: Mr. President, in addition to that, Senate Bill 16-38 which is, "To amend the Commonwealth PUC Act of 2006 to permit the CUC to procure emergency power without approval of the PUC. (SEN. MARIA FRICA T. PANGELINAN - 07/31/08), I just move to suspend pertinent rules of the Senate and place S.B. 16-37 and 16-38 on our Final Reading Calendar, SO moved.

SJ 16-16 July 3 1,2008

President Pete Reves: Motion has been made and seconded for the suspension of rules and the placement of S.B. 16-37 and 16-38 on today's calendar for final action. Any discussion? None.

I Senate Bill 16-37 and 16-38 hereby placed on today calendar for final reading.

I Floor Leader Paul Manglona: Mr. President, if there's no objection, I move that we go on down to our Bill Calendar until such time that S.R. 16-21 is provided to the members.



Floor Leader Paul ,Mandona: Thank you, Mr. President. I now move for the passage of H.L.I. 16-1 1, HD2 under Final Reading and has been seconded.


I Senator Joseph Mebdiola: Are we talking about H.L.I. 16-1 l ? SSl? Just a clarification Mr. President.

President Pete Reyes: That's correct. Any fbrther discussion? Senate Clerk, please roll call.

The roll called on the motion for the passage of House Legislative Initiative 16-112, HD2 Senator Luis P. Crisostimo Yes Senator Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senator Felix T. Mendiola Yes Senator Joseph M. Mendiola Yes Senator Paul A. Manglona Yes Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

: President Pete Resss: With Seven (7) members voting yes, two were absent-excused, H.L.I. 16- ' 11, HD2 passed First and Final Reading.

I Floor Leader Paul Manglona: Mr. President, I move for the passage of H.B. 16-25, HD2, SSl and has been seconded.

; President Pete Reves: Senate Clerk, please roll call.

The roll called on the motion for the passage of House Bill 16-25, HD2, SS1 I Senatbr Luis P. Crisostimo Yes

Senator Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senator Felix T. Mendiola Yes

; First Day, Tenth Special Session

Senator Joseph M. Mendiola Yes Senator Paul A. Manglona Yes Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

, President Pete Revss: With Seven (7) members voting yes, H.B. No. 16-25, HD2, SS1 hereby passes Final Reading.

Chair recognizes Floor Leader to motion to refer to Committee, H.B. 16-4.

Floor Leader Paul Manelona: So moved, Mr. President to refer to the Committee, H.B. 16-4, HD4 and has been seconded. Motion carries.

Chair instructed the Vice-President to refer the bill to the appropriate Committee.


Floor Leader Paul ,Mandona: Thank you, Mr. President. I move for the passage on Final Reading of S.B. 16-37 and has been seconded.

There being ao discussion.

Chair recognized Senator Crisostimo.

Senator Luis Crisoqtimo: Mr. President, I was looking at this legislation and this brings some assurance to the people of Northern Marianas descentlresident of Tinian in obtaining agricultural homestead. First of all, I want to commend the author of this and I just want to echo that certain public land in the past are given to our indigent people for homestead or single family residence and were taken away because of non-performance. I want to help him in also trying to find financial assistance for these applicants. On the other hand, too, I would like to ask him if he can include us, the Senate body or my name, to co-author this legislation and I hope that Tinian would move forward in economic prosperity. I know that two-thirds of their property is owned by the military and if there's something that we can help them, one day we can also buy back some of the property or exchange some of their military lease property to the Northern Islands so that they will get more chunks or more people would own property in Tinian. Thank you.

Chair recognized Senator Mendiola.

Senator Joseph Meodiola: Thank you, Mr. President. I would be more than happy to have co- sponsorship on this bill and may be each member should be reflected on this. There's only one thing that mandates, I think most especially the people of Tinian on this bill, is that we all know that two thirds of the island is going to be used for military. In the last hearing with the lease agreement with MRDC, there was a big concern or expression by the people of Tinian as to what's going to happen to the homestead and agricultural program. So by the action of DPL revoking the lease agreement of MDRC, it is a golden opportunity to reserve such area for future

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SJ 16-16 July 3 1,2008

agriculture and possibly homestead programs so in time of economic crisis, we seem to be giving out public land left and right for the sake of our economy. But at the same time, we have to balance with the needs of the local people. I hope that the members support this and I will more than happy to have co-sponsorship on this bill. Thank you, Mr. President.

' President Pete Reyes: Thank you. We appreciate that Senator Mendiola. Any further discussion? There's being none, I recognize Senate Clerk to please roll call.

The roll called on the motion for the passage of Senate Bill 16-37 Senator Luis P. Crisostimo Yes Senator Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senator Felix T. Mendiola Yes Senator Joseph M. Mendiola Yes Senator Paul A. Manglona Yes Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

President Pete Reves: With Seven (7) members voting yes, Senate Bill 16-37 hereby passes Final Reading.

President Pete Reves: Before I ask the Floor Leader to make a motion for the last bill, I just want to recognize the presence of the Executive Director from CUC in the gallery. This bill is a bill that will respond to the current crisis of the power plant and I hope that every member supports the bill, as this is a very urgent and critical legislation. Thank you.

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Floor Leader Paul Manglona: Thank you, Mr. President. I now I move on the Final Reading calendar the passage of S.B. No. 16-38 and seconded.


i Floor Leader Paul Manglona: Mr. President, I want to move for the Senate to resolve into the Committee of the Whole so that we can get on records some statement by our Executive Director, who is here with us and we hope that it's not going to take more than 15 minutes. If that's okay I'm going to move that the Senate resolve into the Committee of the Whole.

President Pete Reves: Motion has been made and seconded to resolve into the Committee of the Whole.

I Motion was carried by voice vote.

[THE SENATE WENT INTO THE COMMITTEE OF THE WHOLE AT 4:48 p.m.]

First Day, Tenth Special Session

EXECUTIVE DIRECTOR FOR CUC - ANTONIO MUNA

Floor Leader Paul Manglona: Thank you, Mr. President. Mr. Executive Director, thank you for giving us your time this afternoon and as you heard our President there is this urgent matter and you were in meetings prior to the session on the urgency of S.B. 16-38. May be I should just

1 start, Mr. Director, can you explain briefly to the members why the need for 16-38?

Executive Director, Antonio Munq: There was a letter that we received from the PUTC, Chairman and she advised us that Aggreko would have to seek or make application for certificate of public convenience and necessity and in her interpretation of pursuant to PL, the enabling act for the PUC and I believe it's Section 8441. I felt that somehow in the whole process that it wasn't necessary for us to have Aggreko or sub contractors to have to apply through PUC for this particular certificate. It seems like a redundant process nonetheless; as the Chairperson pointed out that it was a requirement of the legislation. Obviously, Senator Maria Pangelinan, today is D-day for us with respect to trying to address this issue with Aggreko. We did signed a contract with them on June lgth and we are going into our six week for trying to allow for us to move forward with the contract.

Floor Leader Pau1,Manglona: Director, can you explain briefly this CCN - Certificate for Convenience and Necessity? What technically we are doing if we include section 2C is pretty much to exempt Aggreko or any company that provides emergency power, is that correct?

Executive Director, Antonio Muna: That's correct.

Floor Leader Paul Mandona: The next question here is, it says here that if the contract is for a term of two years or less, I was under the assumption that this suspension was for a two year

, duration but the way I read it, wouldn't this mean that five years from now as long as a contract between CUC and a' person for the term of two years or less made pursuant to a declaration by the Governor under 3 CMC? In other words, this section would forever exempt CCN requirement as long as it is for a less than two year contract, is that correct?

Executive Director, Antonio Muna: If the emergency has been declared and it allows for the Governor to enter into a contract for two years or less to purchase emergency wholesale power under, from my understanding, a state of emergency.

Floor Leader Paul Man~lona: Do you understand that, Senator Pangelinan? I thought that this exemption was for two years between now and the next two years but the way I read it and as

, Tony explained it is that it's for whenever there's such an emergency even three years, five years from now, ten years fiom now as long as the contract is for temporary power for two years or less

' that this CCN would be waived then cut Certificate for Convenient and Necessity.

Executive Director, Antonio Muna: That's correct.

Senator Maria Paneelinan: Floor, I agree with you. It was our understanding when we signed to introduce this bill that it will be just during these 18 month period of crisis and that we really 1

SJ 16-16 July 3 1,2008

are not anticipating anymore crisis after we have Aggreko and hopefully within the two-year period like you said earlier, it was stabilized operation of CUC. Right now we are supporting you 100% because we look more on the cost of not having electricity rather than cost of rate payers we can address that later and that if this is to be read differently, we don't want it to happen, because we don't expect to have crisis after 18 months, we have another crisis. Who knows, maybe you left CUC and we have another crisis. So, I would like to recommend that we stick to the original agreement that in cooperation with the Executive Branch that this is only to accommodate the Aggreko situation and for the two year period, and if need be again after the two-year period it should come back to the Legislature for a review process. Do you have a problem with that?

Executive Director, Antonio Muna: As you state, I guess my concern obviously is what we need to do in the next 12-18 months as I understand. Of course, after that that's different. So, what I'm here today for is to allow us to afford us this time, because the requirement of having to have Aggreko apply for certificate of convenience, public necessity is something that may preclude us fiom finalizing this contract within the ---

Floor Leader Paul ,Man~lona: Will you be okay if we add or I don't know where the Legal Counsel will put it, but it will say that Section (c)2 shall have a sunset on two-years fiom the enactment of this law that this section would be eliminated. Will you be okay with that?

Executive Director, Antonio Muna: Actually, for myself it satisfies my allowing me to do what I need to do.

Senator Paul Mandona: Okay. So, can the Legal Counsel prepare such a language that Section 2 (c) shall expire in two and a half years after the effective date of this law.

Senator Maria Panpelinan: I think 20-10 would be a safe day, because you remember that there is a 3.4 that is $1.7 Million that is going to come out of the 2010 budget. So, if we could make that, it will not coincide that with the 3.4 advanced payment.

Senator Paul Mandona: So, January 201 O?

Senator Maria Pangelinan: No, it will be September 3oth, 2010, the end of the fiscal year of 201 0.

, Floor Leader Paul Man~lona: Okay, so that will be fine right, if it accomplishes the emergency situation today and the next couple years. I see the Chair of PUC is here, do you want to make any comment at this point? Alright, so with that, I guess Mr. President, we're ready to go back--- I see Senator Mendidla wanted to ask a question earlier.

Senator Joseph Me~diola: No, I was just going to recommend that we language it the way you just mentioned it, the two-years after the effective date of this act or fiscal year, whichever.

Floor Leader Paul Mandona: I understand for the members that Senator Pangelinan, the President, and I were privileged to a discussion prior to the session of the Chair of PUC and


they're going to be reviewing the necessity for this CCN (Certificate of Convenience and Necessity), because we understand that in some jurisdiction, they don't even require this for IPP and it was probably put in there because we required it of the other utilities and it is something that we need to look at whether we should require even small IPP's to submit this requirement. So, I hope that we can get the assistance of the Chair and members of PUC in trying to really review the necessity of such provision. So, with that Mr. President, I move that we go back to our plenary session.


President Pete Reyes: Without objection?


President Thank you, Tony.

[Sehate Reconvened to the preliminary session at 5:00 p.m.]

, President Pete Reqes: We're now back to our preliminary session. Before the preliminary i session, Senator Paul had the floor.


Floor Leader Paul ,Mandona: Mr. President, at this time we are awaiting an amendment to Senate Bill 16-38. So, can we get a 5-10 minute recess to get the language so that we can make the appropriate motion to 16-38?

President Pete Revas: Thank you.

Chair recognized Senator Pangelinan.

Senator Maria Pangelinan: Just in line with the Senator. I know that we're doing--- I know that on 16-2, the relief measure, we failed to catch a technical error so that Tony instead of your receiving the license increases, the revenue on the license that was generated from the increase in licenses, I understand for the Secretary of Finance that because we failed to review the legislation thoroughly, it's not going to go to you. So, it really makes me nervous when I see 3CMC 5121,4

I CMC 8402,4CMC $409, and I don't what they are, because this is supposed to be a critical and an emergency legislation that we need to help out and I would like to trust the Legal Counsels to look into this and make sure that it's all consistent and that we achieved what we're trying to achieve here. So, I would like to make sure that the Legal Counsel please thoroughly make sure that all the sections are correct and they are all consistent with the intention of what we are trying

I

to achieve on this legislation.


SJ 16-16 July 31,2008

President Pete Reves: We have a short recess and I ask the members to please don't leave. It's very difficult to get you back together. Thank you. In the meantime, I want to mention to the members that we need to make a motion to recall our action on House Bill 16-1 12. (Tape 1 Side B). We will continue to discuss Senate Bill 16-38.


Floor Leader Paul Mancrlona: Thank you, Mr. President. During the Committee of the Whole, it was recommended that we make an amendment to Senate Bill 16-38. So, I move at this time

I Mr. President, to offer an amendment to add a new section on the bill entitled "sunset clause" which reads as follows; "this act shall expire on September 30, 201 0". So move, Mr. President.


President Pete Reves: Motion has been made and seconded for a floor amendment.

Floor Leader Paul Manglona: Mr. President, I did not specify a section. We will leave that up to the Clerk to renumber the sections so that we have a section in here on sunset clause reading specifying that this act expires on September 30.

President Pete Reves: Thank you and we ask the Legal Counsel to please review that and make sure that the section is appropriate. Everybody understands the floor amendment? Discussion?

Several members voiced, "ready". I

President Pete Reves: Ready.

Motion was carried by voice vote. I

President Pete Reyqs: The bill as amended.

Floor Leader Paul Manelona: Ready for the previous question, Mr. President.

i President Pete Reyes: Ready? ~ Several members voiced, "ready"

' President Pete Reyqs: Senate Clerk, please roll call.

' The roll called on the motion for the passage of Senate Bill 16-38 as amended

Senator Luis P. Crisostimo Yes Senatbr Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senator Felix T. Mendiola Yes Senator Joseph M. Mendiola Yes Senatpr Paul A. Manglona Yes

First Day, Tenth Special Sebsion

Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

President Pete Reyes: With seven (7) members voting yes, Senate Bill 16-38 hereby passes final reading, as amended. I ask the Clerk to please expedite the bill over to the House. They are waiting for this right now. Floor Leader, please make a motion for recall of House Bill 16-1 12.

Floor Leader Paul Manglona: Mr. President, if there's no objection, since the Executive Director is here, if there is no objection I'd like to make a motion to move back to our resolution calendar so we can address a CUC matter. Also, earlier we were going to entertain Senate Resolution 16-21. However, copies were not ready. Now, I believe all the members have copies. So, if there's no objection, since the Director is here that we move back to our resolution calendar Mr. President before we entertain your request?

President Pete Reyes: Without objection from the members, we're back to resolution calendar.


Floor Leader Paul Man~lona: Thank you, Mr. President. I now move for the passage of Senate Resolution 16-21 acknowledging receipt and approving Executive Order 8-9.


President Pete Reyes: Motion has been made and seconded. Discussion?

Several members voiced, "ready".



President Pete Reyes: Senate Resolution 16-2 1 is hereby adopted. By the adoption of 16-2 1, I would like to note for the members that this resolution successfully approves Executive Order 8- 9.


Senator Maria Pangelinan: Mr. President, I just felt that since Senator Paul Manglona and I '

introduced this resolution for approval, I would like the record to reflect that my decision to support the resolution approving the Executive Order raising the loan authority from 500,000 to 5,000,000 is not whether the cost of electricity will rise for the rate payers, but more so on the

I cost of not having electricity. Therefore, it is not the cost of electricity that drives our decision to support this Executive Order, because if we don't have electricity, we would have a catastrophic situation in our community and I just want the record to reflect that. We can work later on civilizing our CUC operation and looking into the issue of rate payers. Thank you.

July 31,2008

Floor Leader Paul Mandona: Mr. President, can I ask for a very short recess?

President Pete Reyes: Very short recess.



President Pete Reyes: We're back to our session. We'll continue to discuss the agenda on , resolution calendar.


Floor Leader Paul Mandona: Thank you, Mr. President. Under discussion I just want to put on record that under Senate Resolution 16-21 which we just passed on Page 1 Line 18 all the way to Line 3 on Page 2, this provision was put under this resolution, because of the understanding under July 31, 2008 letter from the Governor to Mr. President. I think this is an important provision, because the limit of 5,000,000 is not a limit for each and every emergency contract, rather it's a limit on the aggregate amount that CUC can incur as far as borrowing is concern at any particular time. So, this cap is made absolutely clear under the Governor's letter and is cited under the resolution under this particular whereas provision which I just stated. So, that is a very important provision in that it says an aggregate cap. As well as also indicating the 5,000,000 shall include the 3.4 Million obligation identified under Public Law 16-7. Two of those items are obligations and that this 3.4 is included in this $5,000,000 so that there's actually 1.6 left for other remaining repair works. So, I just want the record to reflect that commitment and understanding from the Governor, Mr. President.

President Pete Reyes: Thank you. That's very important. In the event that Senate Resolution 16- 2 1 is unclear, they may refer to the letter and that will clarify everything. Can I have Floor Leader make a motion to recall House Bill 16-1 12?

, Floor Leader Paul Manglona: Thank you, Mr. President. At this time, I would like to move to recall House Bill 16-1 12 HD2 SD1, which was passed by the Senate in its last session. So move.


: President Pete Reves: Motion has been made and seconded to recall and reconsider our action. Any further discussion on the motion?


Senator Maria Panpelinan: Mr. President, may I just be enlightened on that bill? I think I was absent when that was passed.

; President Pete Reves: Floor Leader, do you want to enlighten Senator Pangelinan?

First Day, Tenth Special Sebsion SJ 16-16

Floor Leader Paul Mandona: Okay Mr. President, I believe the need to do so became clear after the Senate's action on said bill and actually in order that we do not have any issue or any concern regarding the upcoming election for the Washington Rep., I believe that we need to recall that and make amendment so that we comply with the language of the constitution. Right now, the language of the constitution under Article 8 Section 1 and this is the constitution, it states and I quote, "Section 1 Regular General Election. The regular general election of the Commonwealth shall be held on the first Saturday in November." So, that's the constitution. So, therefore, we cannot change the constitution by law. So, what we need to do is to go back to 112 SDl and specify that on Pages 3 Line 28-29 and Page 4 Lines 1&4 delete Section 4 and its entirety and renumber the section accordingly. That is the amendment that I am going to be ' offering and in doing so we will leave all the other provisions under 16-1 12 in tact, which is actually to call for a special election for the Washington Delegate which is actually allowed under Article 8 Section 2. It states that other elections may be held as provided by law. It is clear that these elections may not be a regular general election, they must be special elections and if you look at the bill as is written under the bill it adds a tail to the language in the constitution, which is the first Saturday in November and then it adds to that provision. I think that would be violating the constitution. If we want to call the upcoming election and future election, regular election, then we need to offer an amendment to the constitution, that's the intent. I know that the newspaper Mr. President came out and sort of implied that the intent of calling it a special election is so that initiatives cannot be placed. I believe that whatever we do, we cannot call this upcoming election a regular general election in that the constitution clearly states that. So, in order that we not have any legal question on the delegate election, I think that we should clear this up and maybe Mr. President, so that if members have questions, I don't know if this is the

' appropriate time to call for a committee of the whole meeting or recess so that other members I can ask questions to the Legal Counsel.

President Pete Reyes: Motion.

Floor Leader Paul Man~lona: I move that we resolve to the committee of the whole, Mr. President, so that we can discuss.


i President Pete Reyes: Motion has been made and seconded.


[COMMITTEE OF THE WHOLE AT 5:16 P.M.]

President Pete Revas: We're in the committee of the whole and members can question the Legal Counsel. I turn over to the Chair.

Legal 1 think Senator Manglona basically stated the issue very well and distinctly. The Commonwealth Constitution is clear. It states what a regular general election is and it specifically defines it as the first Saturday in November period. Then, Article 8 Section 2

SJ 16-16 July 3 1,2008

states that we can create other elections, but if you read the analysis of the constitution which I did, on Page 125 it says that the Legislature can create by law other elections. These elections are called special elections period. So, the people, not me, who wrote the analysis of the constitution, agree with my interpretation, which means there is only one regular general election in the Commonwealth. It is the first Saturday in November, and anything other than that is a special election. I read the federalization law, which created the non-voting delegate and no where in there does it state that it's attempting to override local election law in anything other than the Washington Representative. There's no federal interest in the converse deciding when our initiatives should or should not be placed. There's no federal interest in deciding when our election for Governor or Senator should be held. So, there is no attempt made by the federal law to amend our constitution in that regard only the term of the Washington Rep., the non-voting delegate and the fact that he is now a member of Congress and not a local Washington Representative.

Senator Henrv San, Nicolas: You mentioned about special election the Legislature can through legislation call for a special election, but did it mention that any specific date for example, if the

' Legislature decides to have a special election next week or it has to be on a Saturday in November?

Leva1 Counsel Mike Ernest: No sir, the Legislature can have other elections any day at any time. The Delegate Election is a general election, but it's a federal general election it is not in my opinion a regular general election has defined by our constitution. I should --- that I did just

, speak to the House Counsel kind of off the record or just off hand about this and she seemed to '

agree with my interpretation and it's quite plain in the analysis of the constitution that the regular general election is the first Saturday in November, anything else is a special election period.

President Pete Reyes: I have a question, Mr. Chairman. I know that the Senate has been accused of playing gamesmanship. I know this term came up once and I wanted to say that we started this word in the Senate. As you probably recalled Senator Maria Frica Pangelinan has mentioned this at one time, but my question to you is, if we call it a general election or any other kind of nomenclature, would it make any difference? Would an initiative be placed on the calendar and considering that the constitution is very clear that initiative can only be placed on a general election, which is defined by the constitution?

Legal Counsel Mike Ernest: Mr. President, thank you. In my opinion of course, you are free to enact whatever laws your conscience allows. However, I think that if you can call the election on November 4'h, which I believe is the date of the Delegate Election, you can call that a general election, but that would have no legal significant. It is by definition by our constitution a special election. If we call it a regular general election and someone were to attempt to place the initiatives on the ballot, those would in my opinion be illegally placed on the ballot. The analysis is quite clear regarding popular initiatives.

Floor Leader Paul Mandona: But let me just add Mr. President that we can vote on initiative : even on special election. There's no restriction on voting during special election initiatives. So,

for example, if the open government popular initiative the Legislature wishes to see that this


, coming election, then we would have to pass a law that specifically says that and nothing prevents us from voting for it in November.

' L e ~ a l Counsel Mike Ernest: I disagree. Actually, to be perfectly frank sir, popular initiatives must go on a regular general election period. That's what it states in the constitution.

Floor Leader Paul Man~lona: But what I was going to say is, we can take that popular initiative and vote on it here so that it becomes a legislative initiative.

Legal Counsel Mike Ernest: Correct. Legislative Initiative.

Floor Leader Paul Manglona: And then pass a law that says that this legislative initiative shall be voted this special election. I believe we can do that if that's the intent.

L e ~ a l Counsel Mikt Ernest: That's my understanding and that would be my best legal opinion and advice to you, because if you do wish it to be included in the special election, it would have to be a Legislative Initiative, because it is unconstitutional to put a popular initiative on a special election and that's just my understanding and my reading of the constitution. Again, as always I could be wrong, but I stand by my decision.

President Pete Reyes: Thank you. Just so that the record is clear, there is no intention that the amendment to call this a special election is to prevent any initiative from being placed on the calendar.

Chair recognized Senator Crisostimo.

Senator Luis Cris~stimo: Counsel Mike, just to get some clarity. In a special election, not thinking of the delegate election, but in a special election and in a case that the Legislature passed a special election for a specific -- either popular initiative or legislative initiative for that specific purpose, do we also have to have a time period -- a funding period for public education for that? Do you see any in the statute that requires us to have that before that given election date, the special election or q e general election? What I'm trying to get is a: isn't it right that we need

- funding for public education on the initiatives before it goes to the ballots? I just want to get --- can you explain on that?

L e ~ a l Counsel Mike Ernest: I don't believe there's any requirement in 16-1 12. I believe that recently passed legislation regarding the election commission does charge the election commission with public education of initiatives and I don't have that legislation in front of me right now, but offthe top of my head I would say that, that is the election commissions job and there does not appear to be any funding in 16-1 12 as it was amended by the Senate. That's my understanding. I don't have the bill right in front of me.

Senator Luis Criso4timo: I'm not citing, I'm just trying to understand that if a popular initiative either makes it through before the general election or special election that's specifically set for, is it mandatory that it goes to a public education for the public to understand the initiative, because some of these initiative are very good as well and can be beneficial for the people.

-16-

SJ 16-16 July 3 1,2008

Floor Leader Paul Mandona: Maybe I should state that, that is why we have the requirement that the initiatives shall be approved by the Attorney General 90 days before the next regular

, general election. So, those 90 days supposedly will give time for the initiative to be prepared and maybe for the Board of Election to educate. But, that is a requirement in the constitution that the initiative shall be approved 90 days before the next election.

Legal Counsel Mike Emest: If I could also add, if you read the analysis, it states that if for some reason the initiative is not placed on the regular general election for some reason, the Attorney General failed to certify it in time or what not. I did some research and I wonder what could we call a special election then. Even that, it's clear in the analysis, it says that if for some reason it misses the first regular general election, it must go on the next regular general election. So, that to me seems like you can't even call a special election if for some reason we missed the first regular general election. So, the analysis is quite specific about this. This is not me making any of this up. Although, I think that it also gels quite well with my reading of the plain language of the constitution.

President Pete Reves: Mike, just for the record so we clarify this, when we made the recall we have not transmitted the bill to the House, so we can act on the bill right away. Just so that the record is clear on this.

1 Legal Counsel Mike Emest: The bilI has not been given to the House, so it's my ---

Floor Leader Paul Manglona: Consideration then right?

Legal Counsel Mik? Ernest: Right. You can maybe ask Attorney Cabrera, but I believe the bill has not been transhitted to the House. It remains the property of the Senate and we may reconsider our actions at any time.

President Pete Reyes: That's correct.

' Floor Leader Paul Man~lona: But let me just point out Mr. President, that our action to I reconsider, it will not change any of whatever we have voted on already except for the fact that

we're just going to remove that tail end of that Section 4, I understand.

L e ~ a l Counsel Mike Ernest: Right. My understanding is that we will then be transmitting Senate Draft 2, whikh would contain a deletion of Section 4 as well as the changes that were made previously. If I could just take 10 more seconds just to apologize to the Senate. This action was made necessary, because I failed to do it properly the first time.

: Floor Leader Paul Manglona: I was going to say that.

Legal Counsel Mike Ernest: This was my mistake that you're fixing and it's not us fixing your mistake, you are fixing my mistake, and I apologize for wasting this bodies time with my air.

President Pete Reves: Okay, are we ready to go back to our session?


Several meinbers voiced, "ready".

[RECONVENED TO PLENARY SESSION AT 5:30 P.M.]

President Pete Reves: We're back to our session and we were discussing House Bill 16-1 12. For the record, the bill was recalled for Senate reconsideration on its action and since we have not transmitted the bill t~ the House, it's still in our possession. It is the property of the Senate and we're making the appropriate correction to reflect the amendments that we earlier made on the bill.


Floor Leader Paul Mandona: Thank you, Mr. President. So, having stated that, that it's still in the possession of the Senate, my motion would be to reconsider Senate's action on House Bill 16-1 12 HD2 SDl . So move, Mr. President.


! President Pete Reves: Motion has been made and seconded. Discussion?


President Pete Reyes: Ready.


President Pete Reyes: House Bill 16-112 is hereby placed on today's calendar for reconsideration.

Chair recognized Floor Leader Manglona. I Floor Leader Paul Mandona: Mr. President, I would like to offer a floor amendment and that would be on Pages 3 Lines 28-29 and Page 4 Lines 1-4 delete Section 4 in its entirety and

I renumber the remaining sections accordingly. So move.

Several members seconded the motion. I President Pete Reves: Motion has been made and seconded for a floor amendment. Discussion?



, Motion was carried by voice vote.

July 3 1, 2008

President Pete Reyes: House Bill 16-1 12, as amended. Any further discussion?


President Pete Reyes: If none. Senate Clerk, please roll call.

The roll called on the motion for the passage of House Bill 16-112 as amended Senator Luis P. Crisostimo Yes Senator Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senator Felix T. Mendiola Yes Senator Joseph M. Mendiola Yes Senator Paul A. Manglona Yes Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

President Pete Reyes: With seven (7) members voting yes, House Bill 16-112 hereby passes final reading, as amended. Floor Leader, we have one resolution that was transmitted by the House. Can I call for a short recess so we can just go ahead and act on it? Short recess.



1 President Pete Reves: We're back to our preliminary session. Before the recess, Senator Paul had the floor.


Floor Leader Paul Manglona: I yield to Vice President Mendiola.

Chair recognized Vice President Mendiola.

Vice President Felix Mendiola: Mr. President, in reference to the necessary amendment of HJR 16-12, I move to amend for which the Legal Counsel shall place the proper language of the amendment, accordingly, in this bill; where it says, whereas any section 702 funding set aside for the islands of Rota and Tinian that are reprogrammed for the purpose of rehabilitating the CNMI's power utility infrastructure should after such rehabilitation be restored to the respective islands for other capital improvements. Thank you, Mr. President.


President Pete Reyes: Motion has been made and seconded. Discussion?



Senator Maria Panpelinan: Maybe Mr. President, that would not be necessary, because this is talking about the Commonwealth of Utilities of the CNMI so it would include Rota and Tinian in the planning in the consolidation and in the allocation of projects. So, I don't see how you can consolidate and at the same time isolate again on its actually total CNMI which I'm sure that Rota and Tinian would be included, but if you want to clarify it it's fine also.


Vice President Felir Mendiola: I want to comment on this. I feel it's necessary, because of the fact that we do have certain plans. For example, we're revisiting the master plan of Rota and

I some of the necessary infrastructure development under the CIP program is already in our plans of action.

Floor Leader Paul Man~lona: Point of information. I think Senator Pangelinan is referring to the fact that the language is CNMI utilities. So, her reasoning is that since it includes Rota and Tinian anyway, then it's not important, but I guess we don't want to amend CNMI to say Saipan, but because of the fact that we don't want to confuse the OIA people, but the Rota part will not be included because we have already reprogrammed for the overhaul of the generators there from our local 702 funding that we have already set aside money for that. I understand Tinian will not be included also, because they have the telesource BOT contract. So, where the language says CNMI, it's actually intended for the power plants here on Saipan. So, I guess that was her reasoning in the language. Thank you.

President Pete Revds: Thank you. Any further discussion?

j (TAPE 2)

, President Pete Reyes: Legal Counsel, you have the language? We need to expedite that so we can transmit it to the House. Okay, on the Joint Resolution, as amended, any further discussion?

Chair recognized Senator Mendiola.

Senator Joseph Mendiola: Mr. President, I just want to express my concern with certain section of this resolution. I'm not objecting to the resolution. We know that we need all future funding to be directed for the fehabilitation of CUC. However, I am very concerned that these funds, if incase the Department of Interior gives us on a consolidated amount, will be under the supervision of the U.S. Army Corps of Engineer. I'm not sure why they used Army Corps of Engineer, it is identified here. It is reflecting that maybe none of us in the CNMI or anybody in the CNMI is capable of supervising the disbursement or these funds to be expended in anywhere possible for the rehabilitation. We have the newly created PUC, why didn't we identify the PUC to be the supervisions on this funds and oversight. For the record, I am very disappointed in previous CIP funds that were directed to Tinian, because the Army Corps of Engineers instead of coming over here arld working with us, they work out of Honolulu with other agencies in the U.S. Mainland. Thee are programs here in the CNMI. It's taking them four years to do just the study for the solid waste. We're going on three years on the waste water and they knew all along

SJ 16-16 July 3 1,2008

that on the site of the solid waste and waste water since the beginning the Military was intending to use that site for their training exercises. They have never communicated with the U.S. Military of the importance of these two infrastructures until just recently when the military started relocating and doing the study. Now, they started communicating with the military and not to support the intent of the people of Tinian to place these sites in the Military land lease. They are wondering where we should put our solid waste and waste water after spending $750,000 of study and this is after spending $752,000 of CIP fund by our CIP share of the CNMI. So, I'm very disappointed with the Army Corps. However, because this resolution is urgent and I understand that the needs to hand carry this over so further discussion can be directed toward this resolution with the counterpart in the U.S,. I am going to support this resolution but again, I want to express my sentiment on why the supervision of U.S. Army Corp and why do we give them oversight and supervision of these funds. It's reflecting negatively to me while Tinian goes out and tries to take away all the CIP funds from Army Corp. Here we are, we're going to give it to supervise the funds for CUC. So because time is of the essence for this resolution, I am supporting it, but just to express my sentiment on the Army Corp of Engineers. I don't know why we put it here, we could put CDA for that matter as a Supervisor or any autonomous agency that have had good record.

; President Pete Reyes: Let me intempt to change the tape. Sorry, Senator.

The Senate recessed at 5 5 7 P.M. AND

The Senate reconvened at S:58 P.M.

President Pete Reyes: We're back to our session again. We were discussing House Joint : Resolution 16-12 before the short recess to change tape. Senator Joe Mendiola, you still have the

floor before recess.

Senator Joseph Mendiola: Thank you, Mr. President. As I was expressing earlier, I'm still confused as to why the Army Corps of Engineers. But again, let me reiterate that for the purpose of getting this message across to the Department of Interior and the counterparts in the federal government that gives us grants and the idea that we have a consolidated funding to help CUC. I'm all in support of that idea and it is my understanding that you'll be going and presenting this and maybe you can express the sentiment of the members when you go there as to what we really want on this program. I have no more, Mr. President.


, Vice President Felix Mendiola: Thank you, Mr. President. Per our understanding during the recess, I move to withdraw my original motion on the additional paragraph that we are ---

!

, President Pete Reyes: Vice President, the motion would be to recall our action so we can reconsider, because we already approved the floor amendment.

I



Floor Leader Paul Manglona: With the advised permission Mr. President, I would like to make a motion to reconsider our action on 16-12, so move.


, President Pete Reves: Motion for reconsideration on House Joint Resolution 16-12 has been seconded.



Vice President Felix Mendiola: Yes Mr. President, I move to withdraw my initial motion on the additional language that we have discussed about concerning HJR 16-12.


President Pete Reyes: Motion has been made to withdraw the floor amendment earlier approved by the Senate and seconded. Discussion?


' Floor Leader Paul Mandona: Mr. President I support the floor leader, we realize the urgency of the passage of this House Joint Resolution to send a message that we really need help at the utility company and that as far as the concern raised by the amendment that we would pursue that with the administration. Thank you.

, President Pete Reyrts: Thank you. If there's no further discussion, I'd like to ask if we can vote?



President Pete Reyes: House Joint Resolution 16-12 is hereby adopted.


Floor Leader Paul Manglona: Mr. President, I move that the Senate adjourn subject to the call , of the Chair.

President Pete Revss: Before I recognize that motion, I recognize Senator Joe Mendiola.

Senator Joseph Mendiola: Mr. President, I would like to make a motion to recall our initial action in adopting House LegisIative Initiative 16-1 1 HD2 SSI . Apparently, we 're supposed to

' adopt House Legislative Initiative 16-1 1 HD2. There's no SSl. So, my motion is to recall our action so we can vote on the original House Legislative Initiative as was sent to the Senate.

SJ 16-16


July 3 1, 2008

President Pete Reves: A motion has been made and seconded to recall our action on House Legislative Initiative 16-1 1, HD2, SS 1 and seconded. Discussion?


President Pete Reyes: Ready.


President Pete Reyes: Short recess.


The Senate reconvened at 6:lO P.M.

President Pete Reves: We're back to our session again. We were discussing House Legislative Initiative 16-1 1, HDZ, SSl and it's officially recalled and placed on calendar. Now, I recognize Senator Joe Mendiola.

Senator Joseph Mendiola: I would like to make a motion if it's proper for me to make a motion for the passage of House Legislative Initiative 16-1 1 HD2.

' President Pete Reves: Floor Leader, it's just removing the SSl, that's the motion right?

I Floor Leader Paul Manglona: That's correct. The Senate now will be entertaining 16-1 1 HD2 as passed by the House without amendment by the Senate.

President Pete Revss: Without amendment, does everybody understand that?

Several members voiced, "yes".

P-: Discussion on that motion?

I Several members voiced, "ready".

President Pete Reves: Ready. Senate Clerk, please roll call.

The roll called on the motion for the passage of House Legislative Initiative 16-11 HD2 Senator Luis P. Crisostimo Yes Senator Paterno S. Hocog absent Senator Jude U. Hofschneider absent Senatbr Felix T. Mendiola Yes Senator Joseph M. Mendiola Yes


Senator Paul A. Manglona Yes Senator Maria Frica T. Pangelinan Yes Senator Henry H. San Nicolas Yes Senate President Pete P. Reyes Yes

President Pete Reves: With seven (7) members voting yes, House Legislative Initiative 16-11, HD2 hereby passes final reading.


Floor Leader Paul Man~lona: No further bills on our final reading calendar, Mr. President.

President Pete Reyes: So your motion for adjournment.

Floor Leader Paul Man~lona: I move for adjournment subject to the call of the Chair.


President Pete Reves: Motion has been made to adjourn subject to the call and seconded.

All in favor of the motion say, "aye".

i Several members voiced, "aye".

All opposed say, "nay".


President Pete Reyes: This session is hereby adjourned.

The Senate was adjourned at 6:10 P.M.

Respectfully submitted by: \

Senate Journal Clerk

Dolores ~ e h u Senate Clerk

final - northern marianas commonwealth legislature · i senate bill 16-37 and 16-38 hereby placed...

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