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House to conduct hearings on user fee reduction, wage hike
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Posted on Jul 05 2005
The House of Representatives decided yesterday to call for public hearings on two controversial bills: the proposed user fee reduction and wage hike.
House members voted during yesterday’s session to refer House Bill 14-325 (user fee cut) and H.B. 14-30 (wage hike) to the Committee on Ways and Means for further study.
“The committee [has been] tasked to conduct committee hearings on these two measures,” said House Speaker Benigno R. Fitial.
H.B. 14-315, authored by majority leader Oscar M. Babauta, aims to reduce the existing 3.7 percent garment user fee to 2.7 percent “to help the local apparel industry compete globally” amid the worldwide lifting of trade quotas. Babauta said the reduced user fee is necessary in view of the ongoing downsizing and closures of factories within the garment industry.
He said the 1-percent reduction would serve as an “incentive” so that the Commonwealth garment industry “can remain viable and contribute to the Commonwealth’s efforts for economic revitalization.”
He said that, as a “local remedy,” the reduced rate would complement the ongoing work at the national level for the amendment of Headnote 3(a) of the U.S. Harmonized Tariff Schedule. The amendment would allow local garment factories to increase the maximum allowable foreign content material in their products from 50 percent to 70 percent.
H.B. 14-30, introduced by Rep. Heinz S. Hofschneider, aims to increase the minimum wage in the CNMI from $3.05 per hour to $5 per hour. The increase would apply to all jobs, except for those employed in the garment industry as sewers and cutters.
The bill also aims to repeal the statutory mandate on employers to assume liability and responsibility for all medical costs of nonresident workers.
It said that employers should rather offer health insurance benefits of which they would be responsible for paying at least 50 percent of the premium.
Further, the bill aims to restrict the Labor Director’s discretion to impose other terms and conditions on a nonresident worker’s contract relating to meals, lodging, and worksite transportation.
H.B. 14-30 is being pushed by the House minority bloc, while the user fee reduction bill is supported mainly by the House majority.
