This bill becomes Public Law No Copies bearing my signature are forwarded for your reference. '

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1 COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Eloy S.lnos Governor Honorable Ralph DLG. Torres Senate President, The Senate Eighteenth Northern Marianas Commonwealth Legislature Saipan, MP Jude U. Hofschneider Lieutenant Governor 2 1 MAR 2.lJ1lt Honorable Joseph P. Deleon Guerrero Speaker, House of Representatives Eighteenth Northern Marianas Commonwealth Legislature Saipan, MP Dear Mr. President and Mr. Speaker: Ibis is to inform you that I have signed into law Senate Bill No , SSI, SOl, HOI, entitled, "To repeal Executive Order No. 94-3, Section 211: Scholarships; to establish a new CNMI scholarship office as an autonomous agency; and for other purposes," which was passed by the Senate and the House of Representatives of the Eighteenth Northern Marianas Commonwealth Legislature. While I approve this measure, the Legislature must be cognizant that an amendment is eventually needed, whereby the language "of excepted service position without reduction in salary and benefits" in the final sentenee of Section 5(b) should be stricken. Such an amendment is necessary because employees of the Scholarship Office will no longer be excepted service employees and must be afforded the salaries and benefits conferred to civil servants, as established in the Personnel Service System Rules and Regulations. This bill becomes. Copies bearing my signature are forwarded for your reference. ' Sincerely, \,. ~ \~... 7' ~OY;;NOS cc: Lt. Governor; Lt. Governor's Legal Counsel; Attorney General's Office; Press Secretary; CNMI Scholarship; Special Assistant for Administration; Special Assistant for Programs and Legislative Review Caller Box Saipan, MP Telephone: (670) /2300 Facsimile: (670)

2 TIIESENATE Eighteenth Northern Marianas Commonwealth Legislature P. O. Box Saipan, MP Febrnary 18,2014 The Honorable Eloy S. Inos Governor Commonwealth of the Northern Mariana Islands Saipan, MP Dear Governor Inos: I have the honor of transmitting herewith Senate Bill No , SSI, SD1, HDl, entitled, "To repeal Executive Order No. 94-3, Section 211: Scholarships; To establish a new CNMI Scholarship Office as an autonomous agency; and for other purposes," which was passed by the Senate and the House of Representatives of the Eighteenth Northern Marianas Commonwealth Legislature. o Dol~ s. B~-" 1I\...c.-e::..-- Senate Clerk Attachment

3 Publi..: Law No TIlE. SENA.TE. ElEHITmnml NORTHERN.II.AlUANAS coldionw'e.alm LE.61S1.A.TUlUt SENATE. BILLNO. 1&-31, SSt, SDl, BOl.AKItCT To REPEAL EXECUTIVE ORDER No. 94-3, SECTION 211: SCHOLARSHIPS; TO ESTABLISH A NEW CNMI SCHOLARSHIP OFFICE AS AN AUTONOMOUS AGENCY; AND FOR OTHER PURPOSES. Offered by Senator(s) Pete P. Reyes Date: August 29, 2013 Referred to: Education & Youth Standing Committee Report No.: None Final Reading: February 18,2014 Referred to: Committee on Judiciary & Government Operations Standing Committee Report No.: None First and Final Reading: February 11,2014

4 EIGHTEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE SECOND REGULAR SESSION, 2013 S. B. NO , SSI, SDl. HDl AN ACT To REPEAL EXECUTIVE ORDER No. 94-3, SECTION 211: SCHOLARSHIPS; TO ESTABLISH A NEW CNMI SCHOLARSHIP OFFICE AS AN AUTONOMOUS AGENCY; AND FOR OTHER PURPOSES. BE IT ENACTED BY THE EIGHTEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE: I Section I. Short Title. This Act may be referred to as the "CNMI Scholarship Office Act of2013." 3 Section 2. Findings and Purpose. The Commonwealth Legislature finds that the current CNMI Scholarship Office is headed by an administrator within the Governor's Office. At times, this structure subjects the Scholarship Office to political influence. The Legislature finds that the Scholarship Board must be free from political influence and any other influence that is contrary to the purpose of the scholarship progranj. Accordingly, the purpose of this legislation is to establish the CNMI Scholarship Offiee as an autonomous agency governed by a board of directors authorized to make policy decisions regarding the 1 scholarship program and promulgate rules and regulations to implement the program. Section 3. Repealer. (a) Section 211 of Executive Order No and 3 CMC 1341 through 1346 is repeal cd in their entirety. (b) 3 CMC is hereby repealed and re-enacted within the new Article 1 as set forth in Section 4 of this Aet.

5 SENATE BILL NO , SSt, SDl, HDl 1 Section 4. Amendment. Title 3, Division 1, Chapter 10 of the Commonwealth 2 Code is amended by adding a new Article 1, subject to codification by the Commonwealth 3 Law Revision Commission, to read as follows: 4 "Article 1. CNMI Scholarship Office. 5 Section 101. Definitions. As used in this article, the following definitions shall 6 apply: 7 (a) "Board" means the CNMI Scholarship Board of Directors. 8 (b) "CNMI" means the Commonwealth of the Northern Mariana Islands. 9 (c) "Financial Assistance" means student grants, student loans, student scholarships, I 0 and other programs of student financial assistance. 11 (d) "Fund" means CNMI Scholarship Fund established under section 107 of this 12 article. 13 (e) "Resident" means a person who is a United States citizen, who has resided in the 14 CNMI for at least three consecutive years and is a registered voter in the CNMI before 15 applying for financial assistance administered by the board and who is attending or has been 16 accepted for enrollment at an accredited institution of higher education or a trade institution 17 in the CNMI or any part of the United States that is designed to develop the CNMI 18 workforce. The residency requirement may be met by proof of a parent residing on Saipan 19 for the requisite period. 20 Section 102. CNMI Scholarship Office. 21 (a) The CNMI Scholarship Office is hereby established within the Executive Branch 22 headed by an administrator appointed by the Scholarship Board of Directors. 23 (b) The CNMI Scholarship Office is established as an autonomous agency under the 24 general control and direction of the Scholarship Board of Directors. The board shall adopt 25 bylaws that enumerate its purposes, duties, powers, and rules of organization and operation, 26 which bylaws shall not be inconsistent with this article. 27 Section 103. Scholarship Board of Directors. 28 The Scholarship Board shall be composed of three (3) members from Saipan, one (I) 29 member from Tinian, and one (I) member from Rota. The members shall serve for a term Page 2

6 SENATE BILL NO , SSI, sm, DDt I of four years and may be reappointed. The terms of the initial members shall be staggered 2 when the board is first established as follows: three members shall serve an initial term of 3 three years, and two members shall serve an initial term of four years. The terms of the 4 initial members shall be determined by the drawing of lots. 5 (b) All appointed members shall be registered to vote in the CNMI, be at least 21 6 years of age, and be residents of the CNMI for at least three years immediately prior to 7 appointment. The Governor shall appoint members of the board subject to confinnation by 8 the Senate. 9 (c) The board shall choose a chairperson among its members to preside over board 10 meetings. It also may establish committees necessary to conduct its business and prescribe II by regulation procedures to govern meetings Persons Eligible for Board. 13 (a) No person who holds an elective office shall be eligible to serve on the board. 14 (b) Any board member may be removed by the Governor on the grounds of gross 15 neglect of duty, conviction of a felony. or mental or physical incapacity Powers and Duties. 17 The Scholarship Board shall: 18 (a) Establish policies pertaining to higher education financial assistance consistent 19 with this article; provided that the Board shall not require students to attend the Northern 20 Marianas College for the first two years of college as a condition of receiving financial 21 assistance. 22 (b) Administer the financial assistance program for eligible residents of thc CNMI 23 authorized under this article. 24 (c) Have authority and control of all funds appropriated by the Commonwealth 25 Government or otherwise made available to the board for education financial assistance. 26 (d) Receive and accept from any individual, association or corporation, gifts. grants 27 and donations of money for the purpose of providing education financial assistance. 28 (e) Enter into such contracts including employment contracts as are necessary or Page 3

7 SENATE BILL NO SSl, SDl, HDl 1 incidental to the perionnance of the board's duties and in carrying out the functions of the 2 board under this article. 3 (f) Record, monitor, and maintain financial records of monies received by the board 4 for education financial assistance and for its operational costs. 5 (g) Establish programs and criteria for education financial assistance including, but 6 not limited to, grants, scholarships, loans, 7 (h) Set up procedures for awarding education financial assistance. 8 (i) Receive and review applications for education financial assistance. 9 (j) Receive, maintain and review records of all education financial assistance. 10 (k) Issue an annual report to the Governor and presiding officers of the legislature, 11 but not be limited to its policies, financial reports, listing of students by school attended and 12 school year, and any other information which the board may deem appropriate. 13 (\) Prescribe reasonably necessary rules and regulations pursuant to I CMC through 9115, Administrative Procedure Act, to carry out the intent of this Act. 15 (m) Do any and all other things necessary to the full and convenient exercise of the 16 above powers Eligibility for Financial Assistance. 18 No person other than residents of the CNMI as defined under section 101 of this 19 article shall be eligible for or receive assistance from the CNMI Scholarship Fund, CNMI Scholarship Fund. 21 There is hereby established the CNMI Scholarship Fund, separate from the General 22 Fund, into which all monies accruing to the benefit of the CNMI Scholarship Office shall be 23 deposited and shall be without fiscal year limitation. The Secretary of Finance is hereby 24 authorized and directed to establish a separate account into which all funds appropriated, 25 donated, or accruing to the benefit of the fund shall bc deposited, and for the payments made 2 therefrom as directed by the Scholarship Board. The funds donated, deposited, or 2 appropriated to the CNMI Scholarship Fund shall be non-lapsing and shall not be 28 reprogrammed for any other purpose. The expenditure authority of the CNMI Scholarship 29 Fund shall be the chairperson of the Board of Directors. Page 4

8 SENATE BILL NO , SSI, SDl, HDI Scholarship Recipient List. 2 The CNMI Scholarship Office and any other governmental entity overseeing any 3 scholarship program shall compile a Scholarship Recipient List sorted by name, mailing 4 address, field of study, number of years in college, and expected graduation date. Upon 5 written consent of the students, copies of this list shall be provided annually to the Northern 6 Marianas College, the Public School System, the Office of Personnel Management, 7 Department of Labor, Employment Services Division, and other governmental entities 8 exempted from the blanket prohibition on hiring nonresident workers under 3 CMC (i). In addition, copies of this list shall be provided upon request to interested private 10 businesses." 11 Section 5. Transition Provisions. 12 As used in this section, "Scholarship Office" refers to the Scholarship Office within 13 the Office of the Governor abolished by Section 3 of this Act and "CNMI Scholarship ) 4 Office" refers to the CNMI Scholarship Office created by Section 4 of this Act. 15 (a) All records and property (including office equipment and contract rights) of the 16 Scholarship Office, and all records and property used primarily in the administration of any 17 function of the Scholarship Office are hereby transferred to the CNMI Scholarship Office. 18 (b) All the personnel used in the administration of the Scholarship Office are hereby 19 transferred to the CNMI Scholarship Office. Employment contracts in effect on the 20 effective date of this Act shall continue in effect as obligations of the CNMI Scholarship 21 Office, and upon their expiration, the employees shall be placed in the appropriate civil 22 service position of excepted service position without reduction in salary and benefits. 23 (c) The policies, rules and regulations of the Scholarship Office shall continue as 24 policies, rules and regulations of the CNMI Scholarship Office until amended or repealed by 25 the CNMI Scholarship Board of Directors. 26 (d) The unexpended balances of appropriations, allocations, allotments, or other 2 funds available for the use of the Scholarship Office shall be transferred to the CNMI 28 Scholarship Office for use in connection with the exercise of its functions. In the transfer of 2 such funds, an amount may be included for the liquidation of obligations incurred by the Page 5

9 SENATE BILL NO , SSI, SDl, HDl 1 Scholarship Office prior to the effective date of this Act. 2 Se.:tion 6. Severability. If any provision of this Act or the application of any such 3 provision to any person or circumstance should be held invalid by a court of competent 4 jurisdiction, the remainder of this Act or the application of its provisions to persons or 5 circumstances other than those to which it is held invalid shall not be affected thereby. 6 Section 7. Savings Clause. This Act and any repealer contained herein shall not be 7 construed as affecting any existing right acquired under contract or acquired under statutes 8 repealed or under any rule, regulation, or order adopted under the statutes. Repealers 9 contained in this Act shall not affect any proceeding instituted under or pursuant to prior 10 law. The enactment of the Aet shall not have the effect of tenninating, or in any way 11 modifying, any liability, civil or criminal, which shall already be in existence on the date 12 this Act becomes effective. 13 Section 8. Effective Date. This Act shall take effect upon its approval by the 14 Governor or becoming law without such approval. ceil'fi'flnm BY: --~~~~~~~'.~ RALPH DLG. TO PRESIDENT OF THE ATTESTED BY: ~lab~/ o ITAM. T IMANAO SENATE LEGISLATIVE SECRETARY Governor Commonwealth of the Northern Mariana Islands Page 6