CIP bill bounces back to Legislature

A Constitutional oversight on the bill that seeks to improve the administration of Capital Improvement Program funds has prompted Gov. Juan N. Babauta to veto the measure Friday.

Babauta urged the Legislature, though, to merely amend Senate Bill 13-13 so it could conform to Constitutional requirements on exceeding employment ceilings and he would soon pass it into law.

Employment ceiling refers to the maximum number of personnel that could be hired by each branch, department, agency, authority and public corporation in the CNMI, as established in the annual appropriations act.

In his message to legislative leaders, Babauta said he disapproved Senate Bill 13-13, or the CIP Administration Improvements Act of 2002, because the language used in the provision giving the Secretary of Public Works the power to exceed the employment ceiling does not pass Constitutional muster.

“S.B. 13-13 does limit this authority [to exceed the employment cap] by allowing the employment of individuals above the ceiling only for a limited term. However, Article X, Section 7 of the CNMI Constitution mandates the Legislature to establish a ceiling on the number of persons that may be employed,” he said.

That Constitutional mandate goes on to provide that “except for specific approval by joint resolution of the Legislature, no public funds may be expended for personnel in excess of the ceiling established,” he added.

“Therefore, the bill needs to either provide a ceiling on the number of employees that may be hired or a joint [legislative] resolution [before] exceeding the ceiling. Without such changes, it is an improper delegation of authority, as that responsibility is reserved to the Legislature,” he said.

Babauta also pointed out that any use of CIP funds has to comply with the terms of the Third Special Representatives Agreement, which requires that anyone employed using Section 702 money must perform services in direct connection to a specific grant project.

“Funds may not be expended for governmental operational needs. Language should be fashioned to avoid any confusion in this area,” he said.

These concerns, Babauta said, leaves him no choice but to veto Senate Bill 13-13.

He assured the Legislature, however, that his Administration is committed to the goal of the measure, which is to ensure that CIP projects are not delayed and that the administration of CIP funds is improved.

“This support led to my appointment of Charles D. Jordan of the National Council of Architectural Registration Boards as Special Assistant for CIP Management to expedite implementation of CIP,” he stressed, adding that he is he looking forward to receiving an amended version of the measure.

Senate Bill 13-13 primarily seeks to amend l CMC § 7301(d) purportedly to improve the administration of CIP projects, provide for speedier completion of projects, and ensure quality work by contractors.

Senate President Paul A. Manglona, the bill’s author, said that, although existing law allows up to 10 percent of funds appropriated for CIP projects to be used for contract management and administration of projects, this is rarely done.

“Instead, the support services for CIP are undertaken by regular government personnel or pursuant to professional services contracts funded by the Commonwealth’s general operations budget,” he said.

With the measure, the Technical Services Division of the Department of Public Works will be allowed to use up to 10 percent of CIP funds for contract management and administration of the project, particularly in hiring professional services such as securing the services of architects, engineers, and other technical personnel or services.