Legislature fails to pass Fund bills

The 17th House of Representatives and Senate, the only ones in CNMI history that have a three-year term each instead of only two, failed to act as one entity on at least 24 bills and initiatives that seek to help the cash-strapped NMI Retirement Fund, even after the Fund became the first public pension agency on American soil to file for Chapter 11 bankruptcy. Lawmakers themselves pointed to a lack of compromise and political differences.

A lot of Fund-related legislation passed by one house are either “dead on arrival” or gather dust in the other house.

Only five bills directly related to the Fund became public laws since the 17th Legislature was sworn into office in January 2010, and one of them only repealed the other one—the derivative act.

One of them, Public Law 17-32, was meant to reduce by some $84 million the Fund’s actuarially accrued liabilities. That legislation, authored by Sen. Luis Crisostimo (Ind-Saipan), allows the Fund board to vote to provide a non-compounding annual retirement bonus in lieu of a cost of living increase to help provide for the pension agency’s fiscal solvency.

The other laws were meant to modernize the Fund’s investment law, by House floor leader George Camacho (Ind-Saipan); and the derivative act by Senate floor leader Pete Reyes (R-Saipan) and Sen. Jovita Taimanao (Ind-Rota) that was repealed a few months later by a bill authored by Senate Vice President Jude Hofschneider (R-Tinian), Sen. Juan Ayuyu (Ind-Rota), and Sen. Henry San Nicolas (Cov-Tinian).

One other was House Speaker Eli Cabrera’s (R-Saipan) bill providing annuitants an option to continue their government life insurance coverage under the same group terms and conditions as that offered to government employees provided that annuitants’ coverage is not reduced by more than 30 percent.

House Bill 17-226, which allows withdrawal of up to 50 percent of Fund contributions without penalty, passed both the House and Senate but was vetoed by the governor although an “enhanced” version of Cabrera’s bill is now being drafted by the Fitial administration.

“It is getting too close to the election and I’m afraid that the 17th CNMI Legislature leadership has failed its people. In other words, it has nothing to show (for it). And this is very sad,” Rep. Frank Dela Cruz (R-Saipan) told Saipan Tribune yesterday.

Dela Cruz challenged both the House and Senate leaderships “to begin the process of sitting down and working on the issues and we have many.”

“If I was part of the so-called leadership, this is what I would have done a long time ago,” Dela Cruz added.

House floor leader George Camacho (Ind-Saipan) said yesterday the only way that the CNMI can move forward is to set aside politics and work toward a common goal.

Senate President Paul Manglona (Ind-Rota) also called on the House speaker to set aside political differences, unite, and work together to find solutions to prolong the Fund’s lifespan.

Manglona’s three Senate initiatives passed the Senate in December 2011 but the House has not acted on any of them nor communicated with the Senate the objectionable provisions of the initiatives to be able to at least reach a compromise.

Instead, the House has chosen to ignore the Senate initiatives. But the House leadership has been blaming the Senate for continuously opposing revenue-generating House bills that seek to legalize casino gaming on Saipan which they say could help the Fund. Senators insist that voters should decide on this but an ongoing popular initiative has so far gathered only 497 signatures, far below the 2,590 required to place the question on the ballot.

Manglona’s Senate Legislative Initiatives 17-13, 17-14 and 17-15 seek to transfer management decision of public land golf course leases to the Fund, transfers funds from the Marianas Public Land Trust to the Fund, and set aside 25 percent government revenues to pay the government’s employer contribution to the Fund.

The House also has yet to pass House minority leader Joseph Deleon Guerrero’s (R-Saipan) pension obligation bond initiative, as well as a separate proposal to cut rebate tax by 20 percent to help the Fund.

After the Fund filed for Chapter 11 bankruptcy, only HB 17-226 passed the House and Senate but was vetoed by the governor. A federal court, however, junked the bankruptcy petition. Other Fund bills and initiatives have been languishing mostly in the House.

Rep. Ray Basa (Cov-Saipan) earlier said it was also not right that the Senate passed bills and initiatives without holding public hearings, making it difficult for the House to pass the same bills that the Fund itself is opposed to but were not given the chance to voice such opposition.

The other Fund-related bills that have yet to see the light of day include HBs 17-11, 17-13, 17-74, 17-98, 17-99, 17-204, 17-296, as well as SBs 17-3, 17-27, 17-29, 17-35, 17-36 and 17-100.

Moreover, only one revenue-generating bill has become law so far in the 17th Legislature.