Adopted on November 19, 2010

THE SENATE • SEVENTEENTH LEGISLATURE • COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

Senate Journal SECOND REGULAR SESSION, 2010 SJ 17-15

Second Day Friday September 03, 2010

In compliance with the Open Government Act, Senate President Paul A. Manglona issued a notice on August 31, 2010, announcing that the Senate of the Seventeenth Northern Marianas Commonwealth Legislature will convene this open and public session. The notice, the official session call, and the session agenda were filed in the Office of the Senate Clerk; released to the media; and posted at the Entrance Halls of the Office of the Governor, House of Representatives, and the Senate, and on the Commonwealth Legislature’s website at www.cnmileg.gov.mp.

The Senate of the Seventeenth Northern Marianas Commonwealth Legislature convened its Second Day, Second Regular Session, on September 03, 2010, at 3:52 p.m., at the Tinian Elementary School, Tinian, Commonwealth of the Northern Mariana Islands.

The Honorable Paul A. Manglona, President of the Senate, presided.

A moment of silence was observed.

The Clerk called the roll and Eight (8) members were present and One (1) member was absent.

President Paul A. Manglona: Please let the records reflect that Senator Luis P. Crisostimo is excused for today’s session so with eight (8) members present this afternoon, we have the necessary quorum to conduct today’s session. Before we move on, I would just like to recognize the presence of Mayor Dela Cruz in the gallery as well as members from the Municipal Council, Board members of PSS and as I understand the Chair of NMC Board of Regents in here as well as the Commissioner of PSS, the PSS family and NMC family. Todu siha i man distenggidu na members siha na taotao ta ni man hita todus mañe’lo-hu yan mañe’la-hu ni man gaige pagu, Si Yu’us Ma’se ni man presente hamyo. Floor Leader the reading and approval of the Journal.

READING AND APPROVAL OF THE JOURNAL

1. SJ 17-10 – 1ST Day – 5th Special – ADOPTED

2. SJ 17-11 - 1st Day - 6th Special - ADOPTED

-1- Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Floor Leader Pete P. Reyes: Thank you Mr. President. We have two journals, Senate Journal 17- 10, First Day, Fifth Special Session and Senate Journal 17-11, First Day, Sixth Special Session, I move for its adoption.

Seconded by several members.

President Paul A. Manglona: Is there any discussion? Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

MESSAGES FROM THE GOVERNOR

1. Gov. Msg. No. 17-205: August 13, 2010 – H.B. No. 17-66, HD1, SD1, entitled, “To reform the Commonwealth’s ELECTION STATUTES to conform with federal requirements,” becomes PUBLIC LAW NO. 17-11.

2. Gov. Msg. No. 17-206: August 03 2010 – Certification for vacant positions for one Personnel Assistant, at OPM.

3. Gov. Msg. No. 17-207: July 28, 2010 – Certification for vacant positions for one Land Title Investigator, at the Technical Services Div., DPW.

4. Gov. Msg. No. 17-208: August 10, 2010 – Re-appointment of Mr. Jerry P. Crisostimo to serve on the NMI Retirement Fund Board of Trustees representing Saipan.

5. Gov. Msg. No. 17-209: August 17, 2010 – Signed into law S.B. No. 17-22, entitled, “To designate public land on the island of Tinian for homesteading purposes; becomes PUBLIC LAW NO. 17-12.

6. Gov. Msg. No. 17-210: August 21, 2010 – Executive Order 2010-09; Declaration of a State of Emergency: CUC #25.

7. Gov. Msg. No. 17-211: August 24, 2010 – Signed into law H.B. No. 17-33, HD1, entitled, “To amend Section 3 of PL 12-14, as it applies to the surrounding waters of the Municipality of Rota, to ensure that such regulations do not restrict the rights of persons engage in non-commercial net-fishing, provided that such right be restricted to non-commercial net-fishing for the purpose of obtaining fish for personal or immediate family consumption, to also ensure that the definition of “non-traditional fishing

2 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

methods” is not misinterpreted to include non-commercial net-fishing; and for other purposes,” became PUBLIC LAW NO. 17-13.

8. Gov. Msg. No. 17-212: August 24, 2010 – Signed into local law S.L.B. No. 17-02 D1, entitled, “To amend 10 CMC §§ 1403(c) and 1407(a) (1) and (2) and changing provisions of the Rota Cockfighting Law,” became ROTA LOCAL LAW NO. 17-8.

9. Gov. Msg. No. 17-213: August 24, 2010 – Signed into local law with VETO item, H.L.B. No. 17-24 D1, entitled, “For the First Senatorial District to appropriate $8,000 from local license fees collected for poker and pachinko slot machines in the First Senatorial District; and for other purposes,” became ROTA LOCAL LAW NO. 17-7.

10. Gov. Msg. No. 17-214: August 25, 2010 – Meeting with joint leadership of the Legislature to discuss the will of the people of the Commonwealth in regards to the DOI’s recommendations to the U.S. Congress.

Amended to include:

11. Gov. Msg. No. 17-215: August 20, 2010 – Directive 272 on RIF

12. Gov. Msg. No. 17-216: August 31, 2010 – Copy of resume, statement of financial interests, police clearance and drug test receipt for Jerry P. Crisostimo.

President Paul A. Manglona: Is there any member that wish to comment? If none, lets move on to Messages from the Judiciary?

COMMUNICATIONS FROM THE JUDICIARY

NONE

COMMUNICATIONS FROM HEADS OF EXECUTIVE DEPARTMENTS

1. Dept. Msg. No. 17-18 - EXCEPTION TO HIRING FREEZE AS FOLLOW:

c) Dept. of Commerce – Saipan for Special Assistant to the Secretary of Commerce.

d) Dept. of Labor – Tinian – (1) Labor Certification Worker I and (2) Labor Law Enf. Tech I.

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2. Dept. Msg. No. 17-19: August 18, 2010 – DPL – Rota comment on S.B. No. 17-25 – Tatachog Beach Park as a cultural/arts center and S.B. 17-39 – Homestead permits for active duty military service.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I think it is appropriate at this time to move for the suspension on rules for the compliance of the Open Government Act to allow members to amend our order of business.

Seconded by several members.

President Paul A. Manglona: There is a motion and it has been seconded to amend our agenda to reflect our agenda as shown in our copies this afternoon. Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I now move to amend our order of business. Could the members refer to their copies on page 2? I move to include Governor’s Message No. 17-215 and Governor’s Message No. 17-216, House Communication No. 17-72, in reference to House Resolution No. 17-18 and House Communication No. 17-76, in reference to House Bill No. 17-104, HS1, the election bill. Also, include Senate Resolution No. 17-23, ESGR. For the Calendar, include Senate Resolution No. 17-23 and Senate Bill No. 17-26 for final action, so moved.

Seconded by several members.

President Paul A. Manglona: Is there any discussion? Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you Mr. President. I believe we need to go back to our order of business.

4 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Is there any comments on Governors Message No. 17-215 or Governors Message No. 17-216? On Governors Message No. 17-216, unfortunately there was a request to place the nominees appointment for consideration but the Chairman, Senator Cruz has indicated that the Committees policy or rule is that the Senate should conduct a public hearing on all nominees even those that are being re-nominated and have already undergone the process. So it is for that reason that we are not considering the appointment today for the nominees that are being re- appointed. Under Communication from Head of Executive Department, we have exception to the hiring freeze from the Department of Commerce and the Department of Labor and I know that the approval requires the signature of only the presiding officer in the Senate and in the House but our policy in the Senate is that the members have to vote on every hiring freeze exemption so that with that I am going to ask the Floor Leader to make the appropriate motion.

Floor Leader Pete P. Reyes: Can I ask that we go into a short recess?

President Paul A. Manglona: Short recess.

The Senate recessed at 4:00 p.m.

And

The Senate reconvened at 4:04 p.m.

President Paul A. Manglona: We are back to our plenary session. We are still discussing exemptions to the hiring freeze and the Floor Leader will make the appropriate motion.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I move for the approval of the Department of Labor of Tinian, the hiring of Labor Certification Worker I and Labor Enforcement Technician I, so moved.

Seconded by Vice President Jude U. Hofschneider.

President Paul A. Manglona: Is there any discussion? Senate Clerk, roll call please.

The Clerk called the roll on the motion to approve the exemption on the hiring freeze for the Department of Labor Tinian on labor Certification One, and Labor Enforcement Technician One.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes

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Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, the Senate hereby approves the exemption to Department Messages No. 17-18 (d).

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Mr. President, I just wanted to clarify that the members of the Fiscal Affairs Committee are fully inform that the approval of these positions or FTE should be included in the budget. Thank you.

President Paul A. Manglona: Thank you Floor Leader. Any other comments under Heads of Executive Departments? If none, Communications from the House of Representatives?

COMMUNICATIONS FROM THE HOUSE

1. Hse. Comm. No. 17-58: August 13, 2010 – Returning with amendments S.B. No. 17-13, HD1, entitled, “To domesticate or allow the raising of Sambar Deer in captivity; and for other purposes.”

2. Hse. Comm. No. 17-59: August 12, 2010 – Returning without amendments S.B. No. 17-10, SS1, entitled, “To establish a population-based cancer registry in the CNMI; and for other purposes.”

3. Hse. Comm. No. 17-60: August 12, 2010 – Returning without amendments S.B. No. 17-25, entitled, “To establish the Tatachog Beach Park pavilion on Rota as a cultural/arts center; and for other purposes.”

4. Hse. Comm. No. 17-61: August 12, 2010 – Returning without amendments S.B. No. 17-28, entitled, “To designate the House of Taga Park on the island of Tinian as a Commonwealth Historical Site; and for other purposes.”

5. Hse. Comm. No. 17-62: August 12, 2010 – Returning without amendments S.B. No. 17-31, SD1, entitled, “To name the Natibu Park amphitheater on Tinian, ‘The Antonio Manglona Borja Amphitheater;’ and for other purposes.”

6. Hse. Comm. No. 17-63: August 12, 2010 – Returning without amendments S.B. No. 17-32, SD1, entitled, “To amend Section 2 of PL 15-90; and for other purposes.” (Marine reserve area on the island of Tinian)

7. Hse. Comm. No. 17-64: August 13, 2010 – Transmitting for Senate action H.B. No. 17-40, HD2, entitled, “To amend Article 1 of Chapter 6 of Division 5 of Title 4; and for other purposes.” (Business License Fees)

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8. Hse. Comm. No. 17-65: August 13, 2010 – Transmitting for Senate action H.B. No. 17-52, HD2, entitled, “To add Section 4120 of Title 6 of the Commonwealth Code; and for other purposes.” (Expungement Act)

9. Hse. Comm. No. 17-66: August 13, 2010 – Transmitting for Senate action H.B. No. 17-59, HD1, entitled, “To amend 3 CMC Title 3, § 1312, ‘The Postsecondary Education Act of 1984; and for other purposes.”

10. Hse. Comm. No. 17-67: August 13, 2010 – Transmitting for Senate action H.B. No. 17-77, HD1, entitled, “To amend 1 CMC § 8363; and for other purposes.” (NMI Retirement Funds Contribution to Life Insurances)

11. Hse. Comm. No. 17-68 – August 18, 2010 - Transmitting for Senate action H.B. No. 17-96, HS2, entitled, “To make appropriations for the operations and activities of the Government of the CNMI, its agencies, instrumentalities, and independent programs, and to provide budget authority for government corporations for FY 2011; and for other purposes.”

12. Hse. Comm. No. 17-69 – August 16, 2010 – Certified copy of H.Comm. Resolution No. 17-5, entitled, “Conveying sincere condolences and sympathy to the bereaved family of the late Corporal Dave Michael Maliksi Santos of the US Marine Corps on the occasion of his untimely passing and paying tribute to his fond memory.”

13. Hse. Comm. No. 17-70 – August 17, 2010 – Certified copy of H.R. No. 17-16, entitled, “To amend the Official Rules of Procedure of the House of the Seventeenth Northern Marianas Commonwealth Legislature.”

14. Hse. Comm. No. 17-71 – August 16, 2010 – Certified copy of H.R. No. 17-17, entitled, “To request the Secretary of US Dept. of Education and the Executive Director of the Western Association of Schools and Colleges (WASC) to officially intervene in the damaging ‘Show Cause Sanction’ action against the NMC created by the President of Accrediting Commission for Community and Junior Colleges (ACCJC) or the Legislature shall seek legal remedy to support the CNMI’s lone public college.”

15. Hse. Comm. No. 17-72 – August 16, 2010 – Certified copy of H.R. No. 17-18, entitled, “To respectfully urge the Mina’trenta Na Liheslaturan Guahan to reject Bill No. 429-30.”

16. Hse. Comm. No. 17-73 – August 25, 2010 – Transmitting for Senate action H.B. No. 17-55, HS1, entitled, “To provide for the regulation and control of the operation of gambling enterprises in the Third Senatorial District.”

17. Hse. Comm. No. 17-74 – August 25, 2010 – Transmitting for Senate action H.B. No. 17-93, entitled, “To amend 3 CMC § 1316 to provide for improved financial oversight of the NMC, which will maintain fiscal stability for students’ well-being

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and accreditation reasons; to emphasize the constitutionally mandated use of the Attorney General’s office; and for other purposes.”

18. Hse. Comm. No.17-75: August 26, 2010 - Accepted the Senate amendments to H.B. No. 17-80, SS1, entitled, “To amend Section 3 of PL 16-17 to give the CUC the flexibility needed to partner with the private sector to provide reliable services at efficient rates; and for other purposes.”

Amended to include:

19. Hse. Comm. No. 17-76: September 02, 2010 – Transmitting for Senate action H.B. No. 17-104, HS1, entitled, “To amend PL 17-11 to address the concerns of abuse and fraud; and to mandate the Commonwealth Election Commission to conduct an exit poll.”

President Paul A. Manglona: Is there any comments from the members?

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Just to remind the members that my motion earlier is to also include House Communication No. 17-76, in reference to House Bill No. 17-104, HS1, the election law. This is a very urgent bill that requires action from the members in order to allow the Commonwealth Election Commission to go ahead and conduct the election this coming November. Thank you.

President Paul A. Manglona: Is that House Bill No. 17-104, HS1? I understand that is calendared Senate Clerk? Short recess.

The Senate recessed at 4:07 p.m.

And

The Senate reconvened at 4:09 p.m.

President Paul A. Manglona: Let us resume our session. We are still discussing House Communications. At this point, I would like to recognize Vice President Jude U. Hofschneider under House Communication.

Vice President Jude U. Hofschneider: Thank you Mr. President. If I am in order I would like to recommend and go ahead and move for the placement of House Bill No. 17-55, HS1 on First and Final Reading, item number one. And this is to provide for the regulation and control of the operation of gambling enterprises in the Third Senatorial district, so moved Mr. President.

President Paul A. Manglona: Okay, under House Communication No. 17-73, it shows House Bill No. 17- 55, HS1 to provide for the regulation and control of the operation of gaming enterprises in

8 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

the Third Senatorial District. The motion is to place it under our First and Final Reading Calendar. It has been seconded. Is there any discussion? There being no objection it is so placed. Floor Leader, the motion for action.

Floor Leader Pete P. Reyes: Thank you. If I am in order Mr. President, I would like to make a motion for the passage of House Bill No. 17-55, HS1, the casino bill, so moved.

President Paul A. Manglona: So for the passage, if we vote yes that means it’s rejected. Is there any discussion? Senate Clerk, roll call please. The motion is for the approval. I was only kidding, if we vote yes then it’s to support the legislation and “no” means “no”.

The Chair recognizes Senator Juan M. Ayuyu.

Senator Juan M. Ayuyu: Thank you Mr. President. Before saying “yes” or “no”, I have to say my position on this issue so that the people of Tinian as well as the Leaders of Tinian, the people of Saipan and the people of Rota are aware. I received a letter from our Commissioners from Rota opposing this bill. Let me say for the record that I was voted from the Municipality of Rota and this information comes from the island of Rota. There are a lot of people also from the island of Saipan that raises the issue of not passing this casino bill in the Senate. I take that seriously and I want to share my reasons for that. And like I said again before I vote “yes”, or “no”, I have to ensure that the people understand my position. The other thing, for the members and the entire Commonwealth, as a Senate member I hate being threatened by another legislator from the lower house. Threatening the livelihood of our people, threatening the livelihood of our Tinian people and I totally disagree with that type of concept. You know this is a democratic system where you let us allow the process to work. You do not dictate anyone and try to pursuay them on another manner. I want the new generation to please stand up and let us hold hands toward whatever interests that we want to see here in the Commonwealth. We must stop that type of attitude in our political system; to try and dictate, to try and utilize other Representatives from a small island especially Tinian and Rota. I am sorry the people of Saipan, you know we love all the people in the Commonwealth but us as politicians we do it the other way around and that’s the whole reason why I ran this past election to try the system. I want to make it clear that this is the reason why I would not support this bill because I don’t believe that that is right for one member of the lower house to pursuay or to undermind other legislators. I hope to hear and see more comment on the newspaper in regards to Rota and Tinian. Why? Because we are one Commonwealth, right? If this is a separate Commonwealth issue then I suggest that the people of Saipan should vote on their legislative initiative. The same process Tinian Rota people did it. Again, thank you for allowing me to share my position before casting my vote.

President Paul A. Manglona: Okay, before we vote is there any other member that would like to comment? Let me recognize Vice President Jude U. Hofschneider and then Chairman Ralph Dlg. Torres.

Vice President Jude U. Hofschneider: Thank you Mr. President. Bai chagi mu finu Chamorro. Dis tutuhon este nai mafañagu este na proposal gi Fifteen Legislature ma chagi talu ni mañe’lo-ta giya Saipan. Ma na'i i pupbliku, ma reject pues ma chagi talu gi two thousand seven parehu ta’lo ma reject. Pues illék-ku na klaru enao kumu unu na policy maker or decision maker gi legislature

9 Second Day, Second Regular Session, September 03, 2010 SJ 17-15 debi ta onra i malago’ i henerát pupbliku Saipan pot este i casino. Ya desde eyu na tiempo esta pagu na ora tagigi ha i pusisión hu. Bula ma sasagan guenao huyong na i ekonomia este ha iyo-ña salvation i casino lao illék-ku na guaha mas otro policy ni ta dedekka’ pagu yan policy na ta employ pagu ni ta na fan managi este prospective investors para hu fan halom guini ney. Kumekeleku na pa’go na dia bai sangan na fan hanao magi yan fan ma invest gi Luta yan Tinian next week munga ma sangan na fan hanao magi Saipan or fan hanao hulo’ Pagan. Ti klaru ta sangani i taotao. Pues pot enao na reason na sen makkat buente unu guini na factor na tisiña hit nu man arekláo guini gi ekonomia ta. Yan hunggan rekognisia otro siha lookue na asunto. Pa’go pot este ma sa’sagan ya illek-ña na hu muyong gi news papers si Honorable Speaker Froilan Tenorio, sesso yania este hu muyong gi news paper para hao cho’gue este espanto ya i yun-mami constituents Tinian ma expecta na ta fan huyong lokkue ya bin rebut tatte lao ti eyu na klasi i media wise ni para ta sigi mu focus este gui pa’go ni dipotsia ta famatinas disisión, para este na asunto este gue sagania. Pues para hamyo ni man goflie’ taotao Tinian i guniya ku taotato Tinian hongge yu na position-mami gi delegation Tinian yan guaha siha palu delegadu ginen Saipan and Luta na para ta protehi i industria ni ta aksepta guini i dos sientos u chenta nuebi. Guaha ta’lo ma ta sagan na taya’ hun revenue ma’halom ginen este na aktividat guini ya mampos hit man selfish lao mandagi ney enao sa i Tinian Dynasty siña mu fork out i para hu ma charter magi i direct flight ginen China ni para hao fan halom i Chinese tourist guini ya mañasaga Saipan. Guaha income ma’halom ginen este na industry. i previous leaders siha guini gi ma’pos guiya Tinian, guiya Marianas ma supotta i guifen Tinian ni para ta na dánkolo i industria para ta pangon i sleeping giant eyi gue na ma supotta i para hao ma na’i salapeña i airport para po ma angokko iyo-ña runway. Ya esta pa’go na ora komu man un korasón hit ti hu taiguini ha eyu guaha otro gi man ma’gasta yan i decision makers man sinseru ya illék-ña maila’ ya ta ayuda ya mas ke siña ta pangon este mas ya ta fan hita man revenue ya we are not going to be here today talking about it. Pues i otro ta’lo ney bula asunto ni guaha public program dipotsí it’s a public law it’s a public mandate, its created public law lao i local budget tumak-care all function ya apa’pasi guato i fourteen percent ya esta pa’go ti muna’nayan enao. Bula siha ma’gasta yan i mañelo-hu illek’lek-ña maila’ ta usa – it’s a Public Law, it’s a CNMI law so you use the CNMI money. Of course ta komprende ha i situation pa’go. Pues pot este na rasón – dispensa na kulang hu drag iyo-ku comment lao maila’ ya ta close taiguini, i finéne’na ta respeta i disisión Saipan, taotao Saipan ni munga siha ni casino. i number two ayuda ham magi gi Tinian yan Luta ya ta na function este i casino industry sa kana’ ha’ man ma’matai. Man hongge yu komu makmata este na industry ya bula revenue ha realize gi general coffer we are going to be happy as one CNMI. It’s Commonwealth you have to think about it. Commonwealth not common poor lao hunggan we are separated by waters but we are Commonwealth enao ha Mr. President, thank you.

President Paul A. Manglona: Thank you Vice President. Bai hu recognize pa’go si Senator Ralph Torres.

Senator Ralph Dlg. Torres: Buenas dias. Mr. President, taotao Tinian, taotao Saipan, yan Luta, taya’ na bai sangan guini iyo-ku concern mas ungan Saipan man bota dos brahi, ya hu aksepta enao ya ti problema enao gue’. Lao bula siha na man hoben matto gi eyi na dia para hao fan bota idát niha, in two years, three years, four years, malago’ yu lokkue na todu siha hu ma na’i lokkue oppottunidát para hao fan man bota. Maseha hafa na asunto like Article twelve, casino or maseha hafa. Guaho ginen ga’ku na para i casino ma tattiyi parehu Luta yan Tinian para hao ma guaha initiative and we go through that process. Ya todu i man hoben enao gui iyo-ku concern pot i dos biahi esta matai Saipan sa i man bota gue na tiempo ti man malagu. Maolek ha. Lao ta na’i lokkue

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i man hoben oppottunidát komu man malago’ hu fan man bota dos anios pa’go na tiempo. Enao ha ya enigue iyo-ku advocate iyo-ku colleagues guini na para ta supotta i man hoben yanggen guaha un dia or guaha oppottunidát ya siha lokkue hao fan kahulo’ ya ma voice iyo-na opinion. Kao man malago’ siha or ti man malago’ yao fan saonao. Enao ha Mr. President, move forward. Si Yu’us Ma’ase.

The Chair recognizes Senator Francisco Q. Cruz.

Senator Francisco Q. Cruz: Thank you Mr. President. Man man bota hit Mr. President pat man comment-ha ni bill? Si Yu’us Ma’se Senator Torres hu tungu ha na nu iyo-ku vote para hamyo ni taotao Tinian. nu esta hun li’e’ i gaseta na muyong yu ya hao oppose i casino Saipan. i unu ma li’e’ yu Tinian para bai hu difende i interest Tinian pues debi bai difende manu siña i ínteres sa iyon- mami asset guini gi Tinian i este Dynasty. i pupbliku ma konsiente yu para bai gobietna siha pues debi nai bai cho’gue i dinanche na disisión gue hulo’ para bai difende hafa maolek para i ínteres i taotao Tinian. i otro esta ma sangan ha gi earlier ni Speaker, ya hao sangan ha lokkue Saipan na bai na’i taotao Saipan ya siha hu disidi hafa i malago’- ña gi tano-ña. Sa yanggen guaho mu disidi unu ha yu na botu yaggen lachi i disisión hu ni unu na botu ya bai na lachi i taotao Saipan siempre dánkolo i problema hu. Lao an ma disidi Saipan through public initiative yan man lachi sa bula problema pues siha siempre umisague enao sa man lachi. Ti guaho ni unu ha na botu. Este ha Si Yu’us Ma’ase Mr. President.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you Mr. President. Hagas hu ekspresia pusisión-hu guini gi casino na issue fuera di hu introdusi resolution na ti para bai in aksepta legislation ni mafatto gi Senate pot casino. Un rasón na dos biahi ma pega este na disisión guato gi pupbliku giya Saipan ya dos biahi ma reject. Magahet na en representa i taotao ni bomota hami halom ya debi na bai in respeta i disisión i mayoria. I mayoria illek-ñiha na munga siha casino. Dinanche ha si Senator Ralph Torres na guaha siha kinahulo’ manhoben ya ti ta tungo’ hafa i malago’-ñiha or disisión-ñiha lao guaha manera ni siña ma ekspresia i malagu-ñiha through popular initiative. Guahu lokkue yanggen enao popular initiative bai respeta enao loa ti siña bai supotta para hu guaha casino Saipan yanggen through legislation. Eyugue´ na hu faisen i mangga’chong-hu na hu ma respeta i disisión Saipan sa todu i tiempo yanggen guaha akto en afekfekta Tinian pat en afekfekta Luta hu respecta i representan Luta yan i representan Tinian. Kao enao gi malago’-ñiha para bai in ayuda sumapotta siha. Yanggen magahet na prisisu yan nisisario i man hoben na para hu ma ekspresia hafa i malago’-ñiha guini gi casino siempre ti mappot ma circulate i petition ni para mana'guaha popular initiative sa' yanggen taiguenao bai hu respeta. Ti nisisario bai supotta lao bai respeta sa enao gi demokrasia. Yanggen para bai in desatento nai gi pupblikun Saipan pues bai in fattinas ha disisión para bai in kontra i malago' i mayoria. Ti siña enao ta cho’gue sa' debi ta respeta i pupbliku. I otro, kantidá na salape ma invest giya Dynasty. Guaha-mu sangani yo' na over four hundred million dollars esta na investment. Ti siña hun recover iyon-mu investment gi halom ten años. Ti siña hun recover gi halom kinse años. Maila’ ya ta na’i oppottunidát i investor ya hu recover i iyon-ñiha investment. Po’lo ya siha hu mahasso-yi taimanu ni siña mana la’la’ i kompania sa komu ti siña esta man hanao. Loa man gaigaige ha'. Aannok na guaha ínteres para hu fañaga. Ti apmam na tiempo manmanbota i pupblikun Rota na para u guaha casino. Pa’go ma tutuhon ya esta guaha hu malom para hu fan invest guini gi casino na business giya Luta.

11 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Manmannangnangga pa’go hafa para u masusedi Saipan. Gigon guaha casino Saipan, mahuchom ha siha ya man hanao para Saipan. Ti bonitu enao para ta fan arespeta maila ya ta fan arespeta kabales. Pues enao ha Mr. President hu faifaisen i manga'chong hu ya u ma respeta Saipan. Respeta i disisión-ñiha i voters Saipan. Esta man ekspresia na ti manmalago’ casino. Maila' ya ta respeta. Si Yu’us Ma’ase.

President Paul A. Manglona: Thank you Floor Leader. Is there any other member?

Then Chair recognizes Senator Jovita M. Taimanao.

Senator Jovita M. Taimanao: Si Yu’us Ma’ase Mr. President yan Buenos tatdes para todu i taotao Tinian, yan lokkue i Public School System, yan i Northern Marianas College, yan todus hamyo na man gaige guini. Komu nana gi familia sumen makkat na disisión este i disisión i para hao enafekta i familia yan i komunidát siha. Gi halom enao lokkue hu atan taiguini na dinanche ha si Senator Ayuyu na i Commissioners gi casino’n-mami Luta man managtayi guiya hami halom ya mamaisen pot fabot bin na’i chansa Luta ya hu tutuhon gue mo’na ya hu fañagu mo’na i casino ya ginen enao na ginagao hu hasu mampos i tákkilo’ na hinasso hu ni este. Gi mismo tiempo lokkue siña bai hu sangan taiguini na este casino yanggen hu maloam Saipan. Saipan na tano’ ney dánkolo ya kabales i infrastructure ya lokkue hub of the Pacific. Yanggen ta atan taiguini este i-lleklekta na investors or sino este siha malago’ mu hugando casino an man malago’ mu hugando casino ha lugát un a’atan i díkiké na tano’ man hanao guatu para este i dánkolo ney ma lé lié na guaha otro siha na actividat fuera di enao pot casino. i unu lokkue na rasón hu a’atan i transpottasíon na este Saipan na magahet na guaha i eyi international flights. Giya hami Luta yan guini giya Tinian ta lé lié na ta dipende mas gi man díkiké siha na batkon aire. Lao position-hu gi mismo tiempo pa’go hu lé lié na hami ni ginen Luta pat i man ga’chong hu ni ginen Tinian sumen makkat na para bin bota hunggan pat ahe’. Hu hongge finénéna illék-ña si Senator Reyes yan si Senator Torres na moalekña mon hu mana halom este gi initiative ya hao ma bira talu tatte gi mina’ tres biahi yu mana fan bota i taotao Saipan ya i disisión para hao enafekta i tano’ yan i taotao Saipan. Pues gi halom enao na manera guaha na biahi i disisión ta iléka ta na munga hit gi finénéna munga hit gi segundo lao despues ta talaika i enhassota sa bula siha ta a’atan na rasón. Unu i muna halom salape, hunggan gumaha ta li’e mona yanggen dánkolo na kompania tat komu man malofan i garment siña ha ta dipende gi na revenue lao esta taigue enao na kompania taigue esta enao na revenue. Pues i man ma espiha ha mona man mananatai mona na o’la’ un dai, un tiempo hu guaha nihaloam salape dánkolo para este i entrimente i Commonwealth ni siña mon ta sangan na ha patte huyong Luta, Tinian, yan Saipan pues pot enao na rasón gumaige yu gi position na humahalom na hunggan humahalom i ahe’ lokkue. Pues yahu na para bai bira tatte ya bai na’i i taotao Saipan, ya siha hu fattinas enao na disision. Si Yu’us Ma’ase ni opportunitdat na pon ékungok hafa mas siha hu sasagan sa talo bai bira tatte gi nana gi familia chátsaga i sinente ta gi familia kumu taya salape. Kana ti ta tungo’ hafa para ta cho’gue ni para ta na fanocho i familia ta. Pues i familia ta guini gi Commonwealth yanggen taya nihalom salape man mamadesi hit man esalao hit man lalalo’ hit. Todu ha na klansin siente. Lao hafa na manera na ta se’senti taiguenao sa esta taya ninalom despasio i hinalom revenue or salape guini. Pues maila ya ta fan hasso parehu ta’lo na hinasso yanggen munga hit kinalamten i hinaloam salape pues hafa taimanu ni mas ta fan espiha mona ni para hao kalamten i hinalom i salape. Si Yu’us Ma’se maniña-hu yan mañe’lo hu yan todos hamyo. Thank you Mr. President.

12 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Thank you Senator Taimanao. Kao guaha mas?

The Chair recognizes Senator Henry H. San Nicolas.

Senator Henry H. San Nicolas: Thank you Mr. President. I am just going to make it short. I think Mr. President, this Senate, or rather I heard comments from members and I thank you all for your comments. What I want to say is esta i taotao Saipan illék-ña munga siha. Pot fa bot maila ya tattiyi siha ginen este na motibu hao fafaisen hamyo ya ta bota no ni este na bill. Si Yu’us Ma’ase.

President Paul A. Manglona: Because we are discussing this and we are ready to vote, before we do that I would like to ask the Floor Leader to make the appropriate motion for us to properly consider this under our rules. After that because our rules require that we hear out public comments prior to our bill calendar and since we are going to be voting on this I am going to be recognizing any member of the public in the gallery. But first the proper motion Floor Leader.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I move for the suspension of pertinent rules in order for us to entertain this bill on first and final reading, so moved.

Seconded by Vice President Jude U. Hofschneider.

President Paul A. Manglona: Is there any discussion? If none, Clerk roll call please, or rather can we just take a voice vote. Those in favor say ‘aye”

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: Let me recognize Mayor Ramon Dela Cruz under public comments.

PUBLIC COMMENT

Mayor Ramon M. Dela Cruz: Good Afternoon Mr. President and distinguished members of the Senate. On behalf of the people of Tinian, I would like to welcome each and every one of you to our beautiful island and extend un dánkolo na si yu'us ma'ase to the Senate leadership for bringing this session to our community. I would also like to recognize the presence of the Floor Leader, Senator Pete Reyes, and thank him for sponsoring the resolution opposing casino gambling on Saipan. As a former Senator, I understand the pressures and demands that are placed upon lawmakers to pass controversial legislation. Often, these proposed legislations are contrary to the wishes of the people. In the case of casino gaming on Saipan, the people of Saipan have spoken loud and clear on two separate occasions that casino gambling should not be allowed on Saipan. For that reason alone, the Legislature should respect the voice of the people and if they want to entertain casino gaming on Saipan, they should allow the people to once again participate in the decision process through a popular initiative. Unfortunately, the Speaker of the House sought to address casino

13 Second Day, Second Regular Session, September 03, 2010 SJ 17-15 gambling once again only this time it is disguised as a salvation to our economic problems and our bloated government. Fully aware of our economic condition, the people of Saipan have already spoken on the issue and I urge all of you present here today to honor and defend their decisions. The people of Saipan must be given the opportunity to decide for themselves through a popular initiative on the next general election just like Tinian and Rota. In regards to the Speaker's comments that the Dynasty will be closing soon, I think that his comments were very inappropriate and is just another tactic to try to gain public support for his unpopular bill. In fact, it should be noted that much of the difficulties the Dynasty deals with on a daily basis is a direct result of the former Governor's failure to follow through with his promises to develop Tinian's airport and infrastructure. In closing, I would like to end by stating that the Speaker of the House campaigned on the promise to bring the EIC back to the people of Saipan, not casino. Maybe, he should first focus and deliver on that promise. Thank you for your time and continued support.

President Paul A. Manglona: Si Yu’us Ma’ase Honorable Mayor. Guaha ta’lo otro malago’ mu comment under public comments?

The Chair recognizes former Mayor Jose M. Quichocho.

Former Mayor Ignacio Quichocho: Mr. Chairman yan miembro gi Senate ya-hu na bai hu na’i hamyo dánkolo na Si Yu’us Ma’ase pot i un deklara hafa na disisión un fa’tinas pot eyi Saipan casino bill. Hu sienti ha i verdict giya hamyo taimanu ha ekspresia si Senator Taimanao na i problemata para ta raise nu revenue para i nisisidát ta guini gi Commonwealth. Ya-hu na bai make sure giya hamyo na este i casino industry guaha iyo-ña potential. Nisisita ta supotta i industry. Siña ha este ta triple, quadruple or even more. Luta lokkue we have to see na para hao develop iyo-ña industry. Gof na piniti gi hita gi Commonwealth para Saipan ha po ma develop ya ti ma develop Luta yan Tinian. Guaha ni biahi na kulang na’mamahlao na para bai sigi ha ma akusa na man lála’la’ hami Luta yan Tinian ginen Saipan. Ya man malefa hit na hita lokkue man gagagao gi federat mas megai na salape kini hafa ta na hahalom pot para ayudanta este i tano ta Marianas. Hami lokkue Luta yan Tinian en gagagao i central na hu ayuda Tinian yan Luta para hao develop ya ta fan parehu ta fan lála. Este i gaming industry giya Luta yan Tinain, ya-hu na hu ma recognize na it’s a CNMI industry. An ni guaha garment giya Saipan we do not refer it as a “Saipan industry”. It’s a CNMI industry. Ti pot i gaige giya Garapan yan San Antonio na it’s a Garapan industry. This is a CNMI industry. Unfortunately, to develop our industry debi na ta develop i infrastructure. All these years, we have been saving our yearly share and infrastructure is very very costly. We can not do it alone but we struggle to save and save and save. Now that we have invested so much money in infrastructure, even FAA, CPA if Tinian Chair is here I think we pumped them in with close to seventeen million dollars. Ya hunggan Tinian pura ha siha ma subsidize lao kumu un atan the asset of CPA na achaka ma subsidize two hundred thousand per year yan ginnen un deduct enao gi seventeen million it pretty much evens out. Pues este bai faisen hamyo na ko siña hu ma rekognisa i industry as a CNMI industry. Ya hao ma supotta hafa na way ni para ta na lála sa esta gaige casino. It’s generating revenue. Luta ti chago’go’man hami. Pues bula siha phase ni siña ta ayuda lao ya-hu na bai hu offer some suggestion ya hao tungo’ ha buente esta en tungo ha we have mineral resources, i pagan pozzolan. You know over two hundred million metric ton siña ha buente less pago’ sa esta bula contaminant. lao kao guagua chansa enao? Maila ya ta explore enao. Sigún gi tinigu hu guaha esta gai permit gof makkat maloam. Maolek yanggen ta negosio enao na kompania sa esta gai permit. At one time guaha iyo-ña investor, guaha buyer. Loa komu pon baba eyi ya

14 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

nuebu na kompania para hao halom pon fan apply para hu go through i process ta’lo, hekkua’ dai kao para hao ma prueba. Enao gue unu. Guaha lokkue i federat ni eyi yanggen man invest a million yan man hire hao ten million ni alien investor pa’go gi dikiki na community five hundred thousand ha. Maila lokkue ya ta check kao applicable enao ya yanggen ti applicable enao magi pues ta faisen iyo-ta delegate kao siña ma amenda i federal law ya hao man applicable magi gini giya Marianas. Gof bonito komu ta address siha i issue i business. Ti palabra hu este, palabran i econiomist nu guaha siha guenao huyong i Government ti ma e’ékungok mampos i recommendation i investors. It is time na ta listen lokkue i business sector hafa siha i rekomendasión ñiha ni para ta turn things around. Lao dánkolo i problemata este federalization ya ti Tinian ha hu fan afekta lao Marianas wide. Kumu ti ta address este i bandan i labor. Esta pa’go ni siha ti man huyong. Ni chukka un tattiyi unu gi rekomendasión nu ni assistance secretary ges Babauta ni unu gi ni siña chomule' ni para hao address i issue Marianas. Why? Ko siña ta fill todudu i skill positions nu ni ma nisisita Marianas ni i businesses ni para hao grow. Achuka ta adopta unu gi uchu ya taya mas polo inclusion gi na recommendation. Nu ya-hu ha talu bai enfasisa na iyo-ta industry guini hunggan hocog lao guaha dánkolo iyo-ña potential ya dispensa na hu chuchuli este na oppottunidát para bai gagao hamyo na maila ta ayuda este sa achaku guaha para hao finahan guenao pa’go gi leksión-miyu hao en ayuda ni para hao siña ma fahan or sino halom otro ni siña mas a eleklantra i district ya dánkolo este iyo-na impact yanggen ma na guaha eyi pagu sa ti gof mature iyo-ta industry na angen para Saipan dánkolo este para iyo-na impact. It’s in the millions. It’s a slap in the face para investor who invested millions of dollars. Ta na’i agresamentu si Mr. Kwon na ginen giya na iyo-na effort siha lokkue na ma apreba i CNMI as an approve destination status yan i direct flights siha ginen China. Bai utot ha pa’go. Si Yu’us Ma’ase ni yun miyu sapottasion yan ta respeta taimanu man mentiona i consituant Saipan. Maolek i offer lao komu ma apreba Saipan ya two and a half years from now ma puno’ ya as a result na ma prueba guini matai Tinian yan Luta then zero ni para ni unu ni otro. Lao komu ta aydayi ta na lala then I believe na siña mas ta generate mas revenue para i CNMI. Si Yu’us Ma’ase.

President Paul A. Manglona: Thank you former Mayor. Kao guaha ta’lo? Former Senator Dela Cruz.

Former Senator Jose M. Dela Cruz: Si Yu’us Ma’ase Mr. President. Welcome todos hamyo ni man participate na senadót ginen Saipan. Nu bai na kadada sa esta yu excited lokkue ni overwhelming support ni este na effort ni para ta protehi este industria guini fuera gi Tinian yan Luta at the same time para ta send out a strong message to the people of Saipan ti para hao fan ma diroga disisión niha ni ma susedi ni dos biahi nu Senator Torres very touching eyi iyo- mu statement ni para ta na’i lokkue opottunidát este i man hoben ta ni para ma chachagi ni para hao fan man bota. Ta na’i opottunidát ya hu ma pega este gi dinanchi na manera ya munga este na para hao ma rush sa hu tungu hafa siha gaige gi agenda guini ya para bai thank you hamyo in advance ni un bisita hami guini gi dikiki na island mami gi Tinian. Mr. President, Si Yu’us Ma’ase ni man gaige hamyo ya i iyon miyu support ni para ta put this to rest once and for all. Ya ta send a strong message na you know the key to our prosperity here in the Commonwealth is to work together as one Commonwealth. We have enough problems competing with Palau, Guam and people in our region. I think this is the time, this is an awakening for all of us Commonwealth people to come together and work as one family. That is the only way out of this cloud. Again, thank you in advance ni un na fan manenti hami lokkue ni taotao Tinian yan i taotao Luta. Ya magahet na gaige i deniseha ni un protehi i dilasion mami yan lokkue i dilisian i taotao Saipan. Si Yu’us Ma’ase.

15 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Thank you former Senator. Guaha ta’lo miembro guenao huyong? Sinot, siña un sangan ha hafa i na’an mu para i record pao reflecta.

Francisco Ada Hocog: Thank you Mr. President. Guahu si Francisco Ada Hocog, resident Tinian yan mafanagun Tinian. Bai gagao hamyo ayudun miyu pot fa bot ya ta supotta este dos na isla pot este na industria i fan ma dikuti pa’go. Ya maila lokkue taimanu ma sasagan ya ta na’i Saipan este na opottunidát ya siha hao disidi hafa dipotsí malagu niha. Ti siña hit man Commonwealth yanggen Saipan ha. Ti siña ma fa na’an Commonwealth Marianas yanggen Luta ha. Debi di todudu ni guaha na isla. Pues i tres ni mas mayot na isla giya Saipan, Tinian yan Luta. Nuebu este na industria giya Luta, Tinian esta ha esprerincia dididi siña buente gumagua ha fedas hao hafa ma fa nana’an. Saipan ha kitutuhun gue lao pot fa bot hu gagaogao hamyo maila ya ta chagi este. Gi magahet esta gaigi ha guini ya gaigi Luta ni para hao ma tutuhun. Pues hao gagagao hamyo todu na ta na’i Saipan opottunidát lao hao gagagao hamyo siñora yan siñores i senadót na para hun ayuda Tinian. Si Yu’us Ma’ase.

President Paul A. Manglona: Thank you Mr. Hocog. Guaha ta’lo malago’ nu man man na’i palabra? Yanggen taya esta illeku na man listu esta i miembro nu Senate Clerk, roll call please.

The Clerk called the roll on the motion on the amendment on House Bill No. 17-55, HS1.

Senator Juan M. Ayuyu no Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz no Senator Jude U. Hofschneider no Senator Pete P. Reyes no Senator Henry H. San Nicolas no Senator Jovita M. Taimanao abstain Senator Ralph DLG. Torres no Senate President Paul A. Manglona no

President Paul A. Manglona: By a vote of 7 no, and 1 abstention House Bill No. 17-55, HS1, is hereby defeated by the Senate.

The Senate recessed at 4:50 p.m.

And

The Senate reconvened at 5:25 p.m.

President Paul A. Manglona: We are now back to our regular session. We are under communications from the Washington Delegate?

COMMUNICATIONS FROM THE WASHINGTON DELEGATE

16 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

NONE

UNFINISHED BUSINESS

NONE

PRE-FILED BILLS AND RESOLUTIONS

RESOLUTIONS:

Amended to include:

1. S.R. No. 17-23 – In honor of the United States National Guard and Reserve forces, and recognizing the support provided to them by their private and public sector employers as they serve our country.

RESOLUTION CALENDAR

1. S.R. No. 17-23 - In honor of the United States National Guard and Reserve forces, and recognizing the support provided to them by their private and public sector employers as they serve our country.

FIRST READING

LEG. NO. TITLE

FINAL READING

LEG. NO. TITLE S.B. No. 17-29, SD1 To amend Section 4(c)PL 15-70, 1 CMC § 8343, 8342. (Early Withdrawn Retirement)

S.B. No. 17-13, HD1 To domesticate or allow the raising of Sambar Deer in captivity.

(Hse. Comm 17-58) PASSED

17 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

S.B. No. 17-09 To create a new fire department within the executive branch of the commonwealth government; to transfer responsibility for fire (See SCR 17-15) protection functions from the department of public safety’s fire division to the new department; to provide for the orderly Next Session transfer of records, personnel, and property to the new department. H.B. No. 17-37, HD1 To amend 4 CMC, Division 3, Chapter 3, Article 2 by adding a new § 3327 to require certain CNMI offices to provide notary (See SCR 17-16) public services. PASSED H.B. No. 17-52, HD2, To add Section 4120 of Title 6 of the Commonwealth Code SD1 (The Expungement Act of 2010)

PASSED

H.B. No. 17-12, HS1 To amend the sick leave regulations

(Hse. Comm 17-12) PASSED H.B. No. 17-77, HD1 To amend 1 CMC § 8363 (Retirement Funds Contribution to Life Insurances (Hse. Comm 17-67) NEXT SESSION H.B. No. 17-40, HD2, To increase revenues during austerity through tax increases, early SS1, SD2 retirements, and to amend Article I of Chapter 6 of Division 5 of Title 4 PASSED H.B. No. 17-96, HS2, To make appropriations for the operations and acitivities of the SS1 Government of the CNMI, its agencies, instrumentalities, and independent programs, and to provide budget authority for PASSED government corporations for FY 2011

S.B. No. 17-26 To amend the Planning & Budgeting Act; To provide for certain essential Government services to remain in operation in the absence of a FY Budget Act

H.B. No. 17-104, HS1, To amend PL 17-11 to address the concerns of abuse and fraud SS1

H.B. No. 17-55, HS1 To provide for regulation and control of the operation of gambling enterprises in the Third Senatorial District Hse. Comm 17-73 REJECTED

18 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Floor Leader Pete P. Reyes: Mr. President, before we go to Standing Committee Report, I would like to make a motion to place Senate Resolution No. 17-23 on calendar for action.

Seconded by Senator Ralph Dlg. Torres.

President Paul A. Manglona: Those in favor say ‘aye”

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: At this time Mr. President, I would like to make a motion for the adoption of Senate Resolution No. 17-23.

Seconded by Senator Ralph Dlg. Torres.

President Paul A. Manglona: Is there any discussion? This is a resolution honoring the United States National Guard and Reserve forces. Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

REPORTS OF STANDING COMMIITTEES

1. Standing Committee Report No. 17-15: August 12, 2010 – From the Committee on Judiciary, Government and Law reporting on S.B. No. 17-09, entitled, “To create a new fire department within the executive branch of the commonwealth government; to transfer responsibility for fire protection functions from the department of public safety’s fire division to the new department; to provide for the orderly transfer of records, personnel, and property to the new department.” (Recommended passage in its present form) ADOPTED

2. Standing Committee Report No. 17-16: August 10, 2010 – From the Committee on Judiciary, Government and Law reporting on H.B. No. 17-37, HD1, entitled, “To amend 4 CMC, Division 3, Chapter 3, Article 2 by adding a new § 3327 to require certain CNMI offices to provide notary public services;

19 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

and for other purposes.” (Recommended passage in the form of Senate Substitute 1) ADOPTED

Floor Leader Pete P. Reyes: Mr. President, I move for the adoption of Standing Committee Report No. 17-15, in reference to a report from the Committee on Judiciary, Government and Law on Senate Bill 17-09, “To create a new Fire Department within the Executive Branch of the Commonwealth Government; to transfer responsibility for fire protection functions from the Department of Public Safety’s Fire Division to the new department; to provide for the orderly transfer of records, personnel, and property to the new department,” so moved.

Seconded by several members.

President Paul A. Manglona: Is there any discussion? This is recommended by the Committee, Standing Committee Report No. 17-15, those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Just for the members’ information on Senate Bill 17-09, Standing Committee Report No. 17-15, this is placed on today’s calendar on Final Reading. I move to adopt Standing Committee Report No. 17-16, reference to the report on Judiciary, Government and Law on House Bill 17-37, HD1, entitled, “To amend 4 CMC, Division 3, Chapter 3, Article 2 by adding a new § 3327 to require certain CNMI offices to provide notary public services; and for other purposes,” so moved.

Seconded by Vice President Jude U. Hofschneider.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

REPORTS OF SPECIAL AND CONFERENCE COMMIITTEES

NONE

20 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: I believe our agenda has been announced so that the public is aware. Is there any public comment on our agenda? Anyone in the gallery? Let the record reflect that there is no person in the gallery that wishes to comment.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Mr. President, before we do that, may I request that we go back to item M, since we have now the Senate Resolution calendared? We already adopted this resolution so let’s move on to bill calendar. I move for the passage on Final Reading, Senate Bill No. 17-29, SD1. This is the early retirement bill amending section 4 (c) (2) of PL 15-70, 1 CMC § 8343, § 8342, so moved.

Seconded by Senator Ralph Dlg. Torres.

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: Thank you Mr. President. I made a notation here during the last session that we are supposed to be meeting with the Retirement Fund in reference to their rejection or their concerns regarding this bill. As we all know the Retirement Fund has been in communication with the Legislature with some of the ominous bill or stand alone bills reforming the Retirement Fund. Previously we passed legislations somewhat similar to this and it went to the House and I think it was defeated or its still pending and that would actually waive the three percent of the requirements of the class one so that they can retire. They fear that it jeopardizes the stability of the actuarial study on the financial stability of the fund. Now this legislation, although I am going to support and was calendared for a couple of sessions now and I want to ask before we dispose of it and I will support it madam Chair, I am going to support this but I also wanted to ask if the Retirement Fund has come back and made any recommendation whatsoever to address their concerns with this bill before we dispose of it today? Thank you. Just for clarity Mr. President.

The Chair recognizes Senator Jovita M. Taimanao.

Senator Jovita M. Taimanao: Thank you Mr. President and Senator Hofschneider. Yes, it is right that we have to place this bill on hold for three or four sessions already. There was a time on the last session that the Retirement Administrator came in and shared that he wanted further study on this bill. However, I requested if the Retirement could come about and write a position paper on this bill and up to now I have not receive any. Time had dragged on for two months already and we have not received anything. The purpose of this bill also is to allow those individuals or employees in the government that had been in the government for more than fifteen years and they can not go back and withdraw their contribution, at the same time these individuals are looking to see if they would have any incentive for them. However because of austerity there is no incentive and they cannot withdraw so there are more employees who are requesting it, those in class two, and class one if there will be an opportunity for them but this bill has a time frame that we are not going to go ahead and include this more than a year. So again, for those individuals in class one it gives them an opportunity but their pension is not going to be as high so it’s up to them. I have awaited for the position paper from the Retirement that’s why I went ahead and push for this bill. Thank you.

21 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

The Chair recognizes Senator Juan M. Ayuyu.

Senator Juan M. Ayuyu: Thank Mr. President. Again, Senate Bill No. 17-26, SD1, we all do understand that it was calendared for the past three or four session and there is a reason why we did not act on this bill. The intent of the bill is to assist those class one members that are ready to retire. However, Mr. President and members, the only concern that I wanted to raise is the current fund status at this time. We all know that their financial position at this time is not in good standing. I wanted to see a recommendation or whatever from the Retirement to review this bill and if there is no liability for the funds. In the future for sure I am five hundred percent in support of this bill. I want also the class one to be assisted and to retire at an early stage however, we have to see the funds livelihood too at this time and need the member’s help of the Retirement to come and share with us what is their position on this bill. And again the intent of this bill is clearly to assist those class one retirees which I do support. The only thing that I do not support is if we impose additional liability on the Funds financial standhood then again if the fund will be back on the legislature and hunt us down in the future. Thank you Mr. President.

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: If I am in order here Mr. President may I request to the good Chair, the author- I want to make a floor amendment that would identify some funds that would create a trust over at the Credit Union so that the vested members of the Retirement fund – if they solely decide to retire they can avail to a credit union loan the amount that is needed to pop out of public agency and therefore earning their pension they can be paying the credit union back what they loaned. Sort of like a loaning institution Mr. President, and I apologize Madam Chair, Senator Taimanao I like this bill because there are a lot of constituents out there that are asking for this but at the same time too I have mixed feelings with the Retirement issue. They don’t want to pay out. They have been paying out significantly for the last few years and I share the same sentiment with them saying that we may be jeopardizing the livelihood of our pension. Especially for those that are retired already and those that will be retiring like me and everybody else in this panel and out there in the community. So Mr. President, if I am not out of order, may I request to perhaps leave this on calendar and I will be working on the language allowing legislations of some funds to create a program with the credit union to allow this sort of mechanism so they can retire. Is that something that I can request?

President Paul A. Manglona: Thank you Vice President Hofschneider. The sponsor of Senate Bill No. 17-29, SD1 has indicated her willingness to work with you and to come up with the amendments. With that I am going to ask the Floor Leader to make the appropriate motion to refrain the consideration at this time.

Floor Leader Pete P. Reyes: Mr. President, I now withdraw my motion.

Several members seconded.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

22 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: At this time, I know we have six or seven measures we have before us and I think we all have to catch the flight back to Saipan. So I am going to ask the understanding of the members if we can entertain the appropriation measure at a minimum to hear comments from the Public School System and the Northern Marianas College family so that if there are still any concerns at least we are aware tonight and we will proceed with the appropriation measure. We will see how we can consider your recommendations so I ask for the understanding of the members if we can go on to the budget measure. That is House Bill No. 17-96, HS2, SS1. Can I get the Floor Leader to make the appropriate motion before we entertain any discussion?

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you. Mr. President, with the consent of the members, I like to make a motion for the passage of House Bill No. 17-96, HS2, SS1, so moved.

Seconded by several members.

President Paul A. Manglona: We are now under discussion. I would like to recognize the Chairperson of the Committee of Fiscal Affairs.

Senator Jovita M. Taimanao: Thank you Mr. President. House Bill No. 17-96, HS2, SS1, I would like to open the floor of the Senate to make any recommendations as stated that we already had identified amendment for the house bill also in reference to the appendix to come about to the total cap bill of a hundred thirty two million. Mr. President I would like to open the floor for any member of the Senate to come about if there is any recommendation.

President Paul A. Manglona: May I recommend that we go into the Committee of the Whole. Maybe we will limit the discussion to thirty minutes and lets just confine the discussion to the Committee of the Whole to PSS and NMC. Once we are done I will go back to our regular session and entertain other areas of the budget. I would like to recommend that the Committee of a Whole be limited to thirty minutes to talk about NMC and PSS and discuss the numbers. Can I get a motion for the Committee of the Whole?

Floor Leader Pete P. Reyes: Mr. President, I move to resolve to the Committee of the Whole in order to discuss the budget.

Several members seconded.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

23 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

The motion was carried by voice vote.

[The Senate resolved into the Committee of the Whole at 5:42 p.m. and returned to session at 6:15 p.m.]

President Paul A. Manglona: We are back to our plenary session, during the Committee of a Whole we had a testimony from NMC , PSS and the Judicial Branch and it appears that at least that the minimum request have been met by the senate substitute one (SS1) version of House Bill No. 17- 96, HS2. We are still under discussion.

The Chair recognizes Senator Juan M. Ayuyu

Senator Juan M. Ayuyu: Thank you Mr. President. I understand that we are on the budget bill. I would like to offer an amendment on the legislative funds to reduce the discretionary funds from $130,000 to $86,000 for each member, $76,000 for the leadership and the balance of $465,660, I would like to allow the CNMI youth congress office $31,000 out of that amount to satisfy our youths needs in the youth congress division and the remaining balance Mr. President and members let us restore back to the scholarship funds that was taking out at an early stage by the lower house. Thank you Mr. President.

President Paul A. Manglona: There is a motion on the floor by Senator Ayuyu and has been seconded. The motion is to reduce each Senator and House members office account from the amount which was reduce from $130,000 to $99,000 in the Senate and be further reduced to $86,000 as Senator Ayuyu explained in his motion. With that and the fact that he also offered to reduce the $120,000 leadership allocation for the House and the Senate down to $76,000, he projects that $465,000 some savings there which he intends to give to scholarship less the $31,000 dollars that he is recommending for the Youth Congress. Again, I would just like to further state on his motion that as we discussed in the leadership meeting that we grant the Legal Counsel to work with our Senate Clerk to get the exact number as these are very approximate numbers but we authorize that flexibility to the Legal Counsel to get the exact numbers so that we can reflect the intend of the amendment. With that, any discussion on the motion? Ready? Senate Clerk, roll call please.

The Clerk called the roll on the motion on the amendment on House Bill No. 17-96, HS2.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

24 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: By a vote of 8-0, the amendment offered by Senator Ayuyu passes the Senate. Any further discussion on the budget bill?

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you Mr. President. I know that we are probably going to have this bill in conference and if that happens, Mr. President, I wish to go on record asking the members and the President to also consider me in your appointment to the Conference Committee. Also, to please consider returning back the funding taken from the Zoning Board that technically zeroed out the Zoning Board operation and effectively terminated three employees on board. On the Youth Congress, I am happy that this is restored but we still need to find additional funding. Also, if not now, then in the Conference Committee, to return the entire one million dollars that was taken out of Scholarship. I request to please keep that in mind. Thank you.

President Paul A. Manglona: Thank you Floor Leader. I now recognize Senator Taimanao.

Senator Jovita M. Taimanao: Thank you Mr. President. I would like to offer an amendment on the floor for the MVA, five hundred thousand that will be allocated to use to subsidize the charter flights from Japan to Rota. The amendment will be the amount of $190,000 will be given to Tinian and the other $190,000 will be given to Rota. The remaining will be $120,000 and this $120,000 will be going to the old account for the KNT for the charter flights. So all together the amount of $500,000 is still for MVA with the amendment to allocate the funds.

President Paul A. Manglona: Anybody second?

Seconded by Vice President Jude U. Hofschneider.

President Paul A. Manglona: Any discussion on the amendment?

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: I will yield to Senator Ayuyu.

Senator Juan M. Ayuyu: Thank you Mr. President and Chair from the Fiscal Affairs Committee. I will raise this issue where MVA is concern. Rota and Tinian are carrying out their responsibility in trying to promote Tinian and Rota as tourist designation. What we need to have is additional funding to provide promotional funds and at the same the promotional charter flight that is currently on going we have been requesting funding to cover the twelve charter flights that were scheduled by KNT out of Japan to Rota. This amendment is very important not only for Rota but for Tinian as well and I believe the remaining portion will go to MVA’s promotional activity. Thank you.

The Chair recognizes Senator Ralph Dlg. Torres.

Senator Ralph Dlg. Torres: Senator Taimanao just for clarification on page 32, line 1, there is already a $500,000 allocated for that. Are you requesting for additional on top of the $500,000?

25 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Senator Jovita M. Taimanao: No the $500,000 is the exact amount but I am breaking it up into giving Tinian the $190,000.

Senator Ralph Dlg. Torres: Okay, so that will be your amendment on page 32, right? I appreciate it. Thank you.

Vice President Jude U. Hofschneider: Can I request for a short recess? I just want some clarification.

President Paul A. Manglona: Okay, very short recess.

The Senate recessed at 6:15 p.m.

And

The Senate reconvened at 6:30 p.m.

President Paul A. Manglona: Thank you again. We are back to regular session. We are still discussing House Bill No. 17-96, HS2, SS1. I believe the motion before us is on page 32, the Chair is making a motion to clarify further the half a million dollars on page 32.

Senator Jovita M. Taimanao: Thank you Mr. President. Once again I made a motion to take $190,000 from the $500,000 on MVA for Rota and to add the $190,000 to Tinian and $190,000 to Rota and the remaining $120,000 will go to bail out the old account for the KNT. To add on to this amendment the expenditure authority will be the Municipality of Rota and Tinian, so moved.

President Paul A. Manglona: I just want to clarify again as discussed in the leadership meeting that in any motion we make we grant flexibility to the Legal Counsel so that for example as far as expenditure authority and other details we give that flexibility. If the amendments is for Municipality the flexibility could be that it be further expounded to being the Mayor, so the motion before us then as clarified by the Chair. Is there any discussion?

The Chair recognizes the Floor Leader

Floor Leader Pete P. Reyes: The $120,000 is for Tinian and Rota?

President Paul A. Manglona: The $120,000 is for accounts payable. There is an existing charter flight arrangement. The commitment under that arrangement had not been met and this appropriation is to pay for that in order that the company or the present arrangement can be extended another year or two. So is there any further discussion?

The Chair recognizes Senator Juan M. Ayuyu.

26 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Senator Juan M. Ayuyu: Thank you Mr. President. Just a typo error on page 31, line 16, instead of $83,260 the correct figure for the five full-time equivalent FTE for Rota, Department of Public Safety is a $107,860.

President Paul A. Manglona: Can we dispose of the amendment first from the Chair and then we will go on. Okay, so we will dispose of the amendment before us by the Chair before we entertain other amendments. So on the amendment are we ready?

Several members voice ready.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Senator Ayuyu.

Senator Juan M. Ayuyu: Again, thank you Mr. President. On page 28, line 12, I want to correct that figure from $83, 260 to $107,780 and I guess we can minus this from the Mayors Office Rota.

President Paul A. Manglona: Any discussion?

Several members voiced ready.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Senator Ralph Dlg. Torres.

Senator Ralph Dlg. Torres: Thank you. I just want to make an amendment from the Appendix, on the Attorney General all others, I want to take $40,000 and put it to the Legislative Bureau and $3,000 will go towards personnel and the $37,000 shall be under all others.

Seconded by Senator Jude u. Hofschneider

President Paul A. Manglona: Senator Torres, can you restate the amendment?

27 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Senator Ralph Dlg. Torres: Take $40,000 from the Attorney General all others on page 2, of the Appendix and $3,000 shall go towards personnel of the Legislative Bureau and $37,000 shall go towards the all others under Legislative Bureau.

President Paul A. Manglona: Is there any discussion? The motion was seconded earlier. Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: Thank you and I know that we are pushing for time here but allow me to make a floor amendment also on page 30. I would like to expound more on lines 1 to 4, reference to the professional service for nurses, technicians and other medical auxiliary professionals. Now over the last six months we have been discussing the issues with the nursing issue on Tinian and of course some of the issues included compensation. So what’s reflective there on line 1, page 30, we are just breaking that down into details and to allow three hundred and – I'm just going to bottom line it members because it will take too much time. I will reflect it on the amended budget worksheet on the Appendix. I’m going to allow the $361,778, I’m requesting to allow $309,997.84 to be set aside to compensate the transfer of the current SEAS nurses to FTE for Tinian Health Center, inclusive of 4 FTE’s vacant nursing assistance so left over of $361,778 minus $309,997.84 is $51,779.00 will go to all others at the Tinian Health Center, so moved.

Seconded by several members.

President Paul A. Manglona: As we agreed, we give flexibility to the Legal Counsel should there be any minor number adjustment so that we can meet the intent of the amendment. Is there any discussion? Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: Is there any other member? I would like to ask the Floor Leader to effectuate an amendment granting flexibility to the Legal Counsel for whenever she sees a typo or where the numbers are accidentally a little bit off the digit line, as long they are typo’s in nature and administrative provision as well; that we grant her that flexibility. Floor Leader can effectuate the motion?

28 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Floor Leader Pete P. Reyes: Thank you Mr. President. I move to allow the Legal Counsel to make appropriate changes and correction on the bill so that it will be consistent with the intent of the members as long as it’s a typo and correction of numbers, so moved.

Several members seconded.

President Paul A. Manglona: Is there any discussion? Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: We are ready for the main questions? Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass House Bill No. 17-96, HS2, SS1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, the Senate hereby passes House Bill No. 17-96, HS2, SS1, as amended.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Mr. President, I now move, again, to amend our order of business in compliance with the Open Government Act. I move to place House Communication No. 17-64, in respect to House Bill No. 17-40, HD2, on today’s calendar for final action. This requires majority vote. Several members seconded.

President Paul A. Manglona: Is there any discussion? House Bill No. 17-40, HD2, was introduced by the House to increase revenue during austerity with tax increases. The motion is to place it for consideration. Is there any discussion?

Several members voiced ready.

29 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Thank you Mr. President. I move for the passage on Final Reading, House Bill No. 17-40, HD2, so moved.

Several members seconded.

President Paul A. Manglona: Before I recognize any member under discussion, can I ask the Floor Leader to make a motion for an amendment that is before us as Senate Substitute One (SS1), and then we can carry the discussion from that. So motion to substitute as SS1.

Floor Leader Pete P. Reyes: Mr. President, I move to substitute House Bill No. 17-40, HD2, to House Bill No. 17-40, HD2, SS1, so moved.

Seconded by Vice President Jude U. Hofschneider.

President Paul A. Manglona: Discussion on the amendment substituting House Bill No. 17-40, HD2 to SS1. Any discussion?

The Chair recognizes Senator Ralph Dlg. Torres.

Senator Ralph Dlg. Torres: On page 7 and 8, starting on line 17, regulated automated teller machine, that’s one thousand dollar annually. I want to incorporate some language that it stores non- bank teller machine. Its a thousand dollar annual license fee and I want to impose that it’s for a non- bank teller machine. By that I mean it’s not FDIC.

President Paul A. Manglona: So the amendment is to have a language that will clarify that this is for non-banks. I guess those machines that we find in the coffee shops and in some of the stores and maybe even in the casino. May I just ask the Senator is this per machine or per establishment?

Senator Ralph Dlg. Torres: I would like it per machine but at this point the bill asks for licenses will stick to the license.

President Paul A. Manglona: Okay, our rules allow us to ask comments from the Legal Counsel.

Senator Ralph Dlg. Torres: Counsel can we do it per machine or per license?

Legal Counsel Antonette R. Villagomez: Well this is for per machine.

30 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

Senator Ralph Dlg. Torres: Okay, so if we can do that per machine then that’s fine.

Legal Counsel Antonette R. Villagomez: I can make it clear that it’s per machine but that is the intent. One thousand dollar license per machine.

Senator Ralph Dlg. Torres: Then my motion is for per machine.

President Paul A. Manglona: Per machine and non-banks. There is a motion to clarify the language to say per machine for non-banks operation of this teller machines, ATM. Mr. Chairman may I ask the Legal Counsel how much they are paying if she knows, the banks for this machine?

Legal Counsel Antonette R. Villagomez: I don’t know.

President Paul A. Manglona: Does any body have any information on that? Mr. Chairman?

Senator Ralph Dlg. Torres: No I don’t Mr. President, but with all due respect some of the FDIC that has been regulated has gone to the banking system has paid there dues and done their regulation and here we are, we have an ATM that is collecting money that is not secured and overtime we have had knowledge of a hundred ATM that are not FDIC.

President Paul A. Manglona: Is there any further discussion? Ready on the amendment, those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: On SS1?

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Just for clarification, page 7, line 18, in order to satisfy the department on their concern, just after license fee, put in per machine and if the Legal Counsel can insert the appropriate language to reflect that its non-bank ATM.

President Paul A. Manglona: Okay, is that noted Legal Counsel? That is the amendment that was just passed by the Senate. Is there any further discussion?

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: By request by the author himself, requested that we also include funeral services and a fee of three hundred dollars.

31 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: I believe that the Senator is talking about page 4, to add another line so that funeral services establishment be included.

Vice President Jude U. Hofschneider: Can we just put down on line 21, it says all road side venders…

President Paul A. Manglona: Maybe we will allow the Legal Counsel to make that determination and to put it on the proper place for funeral services and the request was for three hundred dollars. Is there any discussion?

Several members seconded.

President Paul A. Manglona: Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: Is there any further discussion? There being no further discussion we are now ready to vote on House Bill No. 17-40, HD2, SS1. I just want to remind the members that this is actually seventy percent of the version that we have under the austerity bill that the Senate transmitted to the House except for the addition of the sweet taxes, for gums and candies and the additional provision that is requested by Senator Ralph Torres to include MRI and CAT scan to reduce the number of referrals. The other addition that we have is coming from the sponsor, Congressman Eliceo Cabrera on the fees which the Senate version drastically reduced. The other addition is the Retirement provision that earlier that was being discussed granting the CNMI Credit Union funding so that those wishing to retire early without penalty and without burdening the Retirement Fund can do so and expected savings of three million a year. With that, Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass House Bill No. 17-40, HD2, SS1, as amended.

Senator Juan M. Ayuyu abstained Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes

Floor Leader Pete P. Reyes: Mr. President and members, before I vote, I want to say that there are a lot of increases in taxes and fees. With all due respect, members, I like to maintain my consistency in not supporting any increases on taxes as I don’t believe in it so my vote will be to abstain.

Senator Pete P. Reyes abstained

32 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Thank you Floor Leader. Senate Clerk, please continue.

Senator Henry H. San Nicolas: Mr. President because of conflict of interest I abstain.

Senator Henry H. San Nicolas abstained Senator Jovita M. Taimanao abstained Senator Ralph DLG. Torres yes

Senator Ralph Dlg. Torres: Mr. President may I also say a few words? I also share increasing some of the fines and I know that the money that is circulating on Saipan is within the business community and I understand our position about this kind of an increase. I share the sentiment on the other hand they are fighting so much about keeping and maintaining the salaries and the hourly wages of the community, our employees, so this is one way for me to at least off set that. The same thing with getting some of the rebate to purchase the Public Health CAT scan and hopefully get brand new beds for CHC and to see some of their equipment up to date and with that I am voting yes on this bill.

Senate President Paul A. Manglona yes

Senator Juan M. Ayuyu: Mr. President may I make a comment?

The Chair recognizes Senator Juan M. Ayuyu.

Senator Juan M. Ayuyu: Thank you. Ever since I stepped in this office we realize how hard it is for our people and the current financial situation. And at a time that we raise taxes it goes back to our consumers. I know that our government is in deep financial crises and this is the only reason that we’re trying to create a revenue generating mechanism to cover the remaining operational needs of our government. All along I agree that we should generate fuel for our needs but again this is my sentiment to our people when we try to impose taxes, higher taxes to meet the needs of our government’s financial crises. With this I want to abstain my vote. Thank you.

Senator Jovita M. Taimanao: Mr. President, can I say something?

The Chair recognizes Senator Jovita M. Taimanao.

Senator Jovita M. Taimanao: This bill has good intentions although we cannot just be generating revenues from our CNMI. We need to look at more creative ways to bring revenue to the economy to the CNMI. So with these taxes, salaries are very low- our people of the CNMI our going to have crucial livelihood – some of this I agree with but not the entire bill. At this point of time I would like to make a request to the President if this bill could be further explored by giving time and perhaps come together and review what are the effective ways to generate revenue and if all this – the intention in tax hiking will make the CNMI’s economy rise a little then we will consider but not the entire bill. I abstain.

33 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Thank you Senator Taimanao. Is there any other member? We are voting.

President Paul A. Manglona: By a vote of 4-0, with 4 abstaining, House Bill No. 17-40, HS2, SS1, passes the Senate on First and Final Reading. Four voted yes and four abstained so I declared the bill passes the Senate as amended.

Floor Leader Pete P. Reyes: Mr. President, I move for the passage on Final Reading, Senate Bill No. 17-13, HD1.

Seconded by Senator Jovita M. Taimanao.

President Paul A. Manglona: Is there any discussion?

Senator Jovita M. Taimanao: Thank you Mr. President. This bill has originated from the House and I authored this bill. It went down to the House and was amended. The amendment is stated in the Committee Report from the Natural Resources and I went through the amendment I realize that if we need to be bouncing this back and forth it will not do good as we know a lot of our families are unemployed and one way that we could avail for them to find ways to have their family eat is not only through the government income but rather from the natural resources so please I ask you colleagues here to find it in your heart to help and pass this bill. Thank you.

President Paul A. Manglona: Thank you Senator Taimanao. Is there any other member? Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass Senate Bill No. 17-13, HD1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, the Senate passes Senate Bill No. 17-13, HD1, on First and Final Reading.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I move for the passage of House Bill No. 17-37, HD1, SS1, so moved.

Several members seconded.

34 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Is there any discussion? If none, Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass Senate Bill No. 17-37, HD1, SS1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, Senate Bill No. 17-37, HD1, SS1, passes the Senate on First and Final Reading.

Floor Leader Pete P. Reyes: Thank you Mr. President. I move for the passage of House Bill No. 17-52, HD2, SD1, so moved.

Seconded by Senator Jovita M. Taimanao.

President Paul A. Manglona: Is there any discussion? Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass House Bill No. 17-52, HD1, SD1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres abstained Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 7 yes, and one abstention House Bill No. 17-52, HD2, SD1, passes the Senate on First and Final Reading.

The Chair recognizes Floor Leader Pete P. Reyes.

Floor Leader Pete P. Reyes: Mr. President, I move for the passage of House Bill No.17-12, HS1.

Several members seconded.

35 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

President Paul A. Manglona: Ready? Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass House Bill No. 17-12, HS1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, House Bill No. 17-12, HS1, passes the Senate on First and Final Reading.

The Chair recognizes Floor Leader Pete P. Reyes

Floor Leader Pete P. Reyes: Mr. President, short recess please?

President Paul A. Manglona: Short recess.

The Senate recessed at 6:39 p.m.

And

The Senate reconvened at 6:56 p.m.

President Paul A. Manglona: We are back to our plenary session. Under Final Reading, Floor Leader?

Floor Leader Pete P. Reyes: Thank you Mr. President. I move for placement on today’s calendar for action on our order of business, again, to comply with the Open Government Act, House Bill No. 17-104, which actually appears on our order of business, under House Communication No. 17-76, so moved.

Several members seconded.

President Paul A. Manglona: It has been moved and seconded. Is there any discussion?

The Chair recognizes Vice President Jude U. Hofschneider.

Vice President Jude U. Hofschneider: I am sorry Mr. President, thank you. I understand the urgency of passing this bill. However, I have a bit of a concern regarding the findings and the

36 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

purposes included on the exit poll on the interior report inclusion this coming election. As we all know, the Committee on Federal Relations has been conducting a series of hearings during the last three months which completed some time in August or July rather. We always meet to support something like this. We are half way done with the draft of the report so I understand the need to address the other sections of this bill. I am a little bit uncomfortable and apprehensive to vote on something that is contracting what the committee work so hard over the last three months to address which are the issues of the guest workers.

President Paul A. Manglona: Is there any further discussion?

The Chair recognizes Senator Juan M. Ayuyu.

Senator Juan M. Ayuyu: Thank you Mr. President. Again, I believe this bill- I think we did discuss this with the Governor during our leadership meeting and again I think the discussion during that time is to place an exit poll on this coming election. The only thing that we did not agree with what is the language that is to be used on that manner. I respect the committee and I know that we have been working on this for the past few months and that’s the only concern is that when we left the leadership meeting we did not agree or discussed any language to be placed for the exit poll survey. Thank you.

President Paul A. Manglona: Thank you Senator Ayuyu. Is there any other member? If none, I would like to say a few words on this legislation. I know that there are two parts to this bill. The first part is amending the election law which became law by an override by the Senate several weeks ago. It was very important to amend that because of the time frame that the Board of Election faces now being that it’s just a couple months more before the election. That was addressed on the first part as far as amending 1 CMC 6528 in regards to polling places under section 2. Under section 3, regards to early voting criteria and so on and so forth in regards to the election law. The second part is the early voting requirements. This was considered by the House at the request of the Governor and I know that the leadership of this body was part of the discussion to allow for such a process. During that discussion the issue of the language of the question was discussed. We have before us that language that is imposed by the House. That is a major concern as stated by the Chairman, Senator Jude Hofschneider, who has together with his committee members and members of the House as well as the Legislative Bureau staff that helped us during the seven public hearings that we conducted including one right here in this very hall. We went out and ask the people in our community how they feel about this report and how they feel about the issue of non-resident workers, those that have been here for many years. I share the sentiment of the Vice President and it is for that reason that it becomes difficult to not grant the Governor that request, a simple exit poll. On the other hand it is also difficult to ask our people to take this extra step when we have been through the hearings and we are ready to come up with a draft report that reflects the sentiment of the people during these hearings. I know I am not suppose to be discussing this as the Presiding Officer but I feel that this is such a critical legislation and we need to address the election law and at the same time grant the favor we are being asked by the Governor. But very reluctantly, I want to offer an amendment and that amendment basically asks that we do not delay the election process and we need to amend House Bill No. 17-104, HS1, SD1, so that we maintain the Board of Election’s request as far as early voting, other polling places requirement, and that we remove the provisions on exit polling. That will be from page 6, except from line 1, on page 6, delete everything and on page

37 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

7, delete from line 1 to line 10, and also with the findings and purpose under section 1, that we allow the Legal Counsel to work with the findings and purpose to reflect only the remaining amendments directly related to the election law. To allow her to come up with the findings and purposes of those amendments, can I ask the Floor Leader with that explanation to offer the amendment.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I am making a motion to allow the Legal Counsel to make the appropriate changes on the provisions in the bill that has to deal with the exit polling and meet all the other provisions that pertain to the election ways and provisions on the bill that is requested by the Commonwealth Election Commission, so moved.

Seconded by Senator Jude U. Hofschneider.

President Paul A. Manglona: Is there any discussion on the amendment? Those in favor say ‘aye”.

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: We are back to House Bill No. 17-104, HS1 as amended. Is there any discussion? Senate Clerk, roll call please.

The Clerk called the roll on the motion to pass House Bill No. 17-104, HS1, SD1.

Senator Juan M. Ayuyu yes Senator Luis P. Crisostimo absent Senator Francisco Q. Cruz yes Senator Jude U. Hofschneider yes Senator Pete P. Reyes yes Senator Henry H. San Nicolas yes Senator Jovita M. Taimanao yes Senator Ralph DLG. Torres yes Senate President Paul A. Manglona yes

President Paul A. Manglona: By a vote of 8-0, House Bill No. 17-104, HS1, as amended passes the Senate on First and Final Reading.

PETITIONS, MEMORIALS AND MISCELLANEOUS COMMUNICATIONS:

1. Misc. Comm. No. 17-61: July 16, 2010 – Department of Navy regarding the Record of decision for the Mariana Islands Range Complex (MIRC) final environmental impact statement/overseas environment impact statement.

38 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

2. Misc. Comm. No. 17-62: July 27 2010 – Pacific Medical Center reporting on the Bi- annual laboratory statistical.

3. Misc. Comm. No. 17-63: July 28 2010 – Letter in support of H.B. No. 17-55 (Casino Operation in the Third Senatorial District – Saipan)

4. Misc. Comm. No. 17-64: August 08 2010 – Commonwealth Retirement Association regarding H.B. No. 17-77 (NMI Retirement Fund Contribution to Life Insurances)

5. Misc. Comm. No. 17-65: August 15, 2010 – Commonwealth Retirement Association regarding S.B. No. 17-29, SD1 (NMI Retirement).

6. Misc. Comm. No. 17-66: August 20, 2010 – OPA Annual Report for CY 2009.

7. Misc. Comm. No. 17-67: August 23, 2010 – 2009-2010 CNMI PSS JROTC Report.

8. Misc. Comm. No. 17-68: August 2010 – CEC Resolution Nos. 10-002; 10-003; 10- 004.

Amended to include:

9. Misc. Comm. No. 17-69: August 31, 2010 – NMC Interim President’s comment on Legislations passed by the House of Representatives

10. Misc. Comm. No. 17-70: September 01, 2010 – NMI Retirement Fund Court Order employer contribution rate for retirement benefits.

11. Misc. Comm. No. 17-71: September 02, 2010 – Juan M. Sablan’s comment on Saipan Casino Act. HB 17-55.

12. Misc. Comm. No. 17-72: September 02, 2010 – Juan M. Sablan’s comment on HB 17-56.

MISCELLANEOUS BUSINESS

NONE

ANNOUNCEMENT

NONE

ADJOURNMENT

39 Second Day, Second Regular Session, September 03, 2010 SJ 17-15

The Chair recognizes Floor Leader Pete P. Reyes for the motion to adjourn.

Floor Leader Pete P. Reyes: Thank you. Mr. President, I move to adjourn subject to your call.

President Paul A. Manglona: Discussion? Those in favor say “aye”

Several members voiced, “aye”.

President Paul A. Manglona: All opposed say, “nay”.

The motion was carried by voice vote.

President Paul A. Manglona: The Senate adjourns subject to the call of the Chair.

The Senate adjourned at 7:57 p.m. subject to the call of the Chair

Respectfully Submitted,

/s/Geraldine T. Cruz Senate Journal Clerk

APPEARANCE OF SENATE LOCAL BILLS

LEG. NO. TITLE

NONE

The Senate may consider, debate, and/or act upon any item contained in this Order of Business at the time and place described herein.

40