The Honorable Joaquin I. Pangelinan Speaker, House of Representatives Second Northern Marianas Commonwealth Legislature Saipan, CM 96950

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1 GOVERNOR'S ACTION ON AN ACT MAKING APPROPRIATIONS FOR TIIE OPERATION OF THE GOVERNMENT OF THE COMMOWEALTH OF THE NORTHERN MARIANA ISLANDS, AND TO PROVIDE PENALTIES FOR VIOLATION OF THE PROVISIONS OF THIS ACT; AND FOR OTHER PURPOSES. The Honorable Joaquin I. Pangelinan Speaker, House of Representatives Second Northern Marianas Commonwealth Legislature Saipan, CM The Honorable Pedro P. Tenorio President, the Senate Second Northern Marianas commonwealth Legislature Saipan, CM Gentlemen: On April 2, 1980 I received H.B. No for my consideration pursuant to Section 7a) and b) of Article II of the Constitution of the Northern Mariana Islands. After serious thought and deep concern I am returning this appropriation bill to you with the following actions and statement of reasons for such actions, The actions are taken pursuant to the constitutional powers granted unto the Office of the Governor. Section 7a) provides that I may veto an item(s) or section(s) in an appropriation bill and sign the remainder. Therefore I submit the following vetoed items and the reasons theref or : I. OFFICE OF THE PUBLIC AUDITOR TITLEII, SECTION 1, E, ITEM 1 IS VETOED AND DISAPPROVED TITLE 11, SECTION 1, E, ITEM 2 IS VETOED AND DISAPPROVED GOV.COMM.I. 11 (Hou se of Rep.)

2 Governor's Action on House Bill No Page Two The appropriated items for the Office of the Public Audi tor are hereby vetoed for the followinq reasons: I The Public Auditor lacks the requisite independence to professionally perform his official duties; and 2. The Public Auditor has refused and failed to carry out his constitutional and statutory duties to audit the whole Commonwealth Government annually; and 3. The Public Auditor has allowed the Office of the Public Auditor to become highly political and has impaired the credibility and integrity of the Office; and 4. The Public Auditor lacks the necessary professionalism for responsible public auditing. His audit reports often demonstrate personal prejudices and contain inaccuracies and misstatements; and 5. The Public Auditor has circumvented normal administrative procedures which has resulted in an unauthorized expenditure of public funds; and 6. The Public Auditor has attempted to exercise a power granted to the Governor by statute without being delegatedthe authority to do so; and 7. The audit reports prepared by the Public Auditor have manifested an obvious lack of legal thought or legal consultation which has resulted in an irresponsible attack upon the integrity of honest'public servants: and 8. The environment created by the Public Auditor has resulted in a loss of respect for the Office of the Public Auditor. The substance and manner of public audit reports has created a situation which jeopardizes the ability of the Commonwealth to obtain Federal funds; and 9. The "all other necessary expenditures" category is excessive in that it includes money for the unauthorized retention of outside counsel. The Office of the Public Auditor will be authorized outside legal counsel when there are adequate assurances of an independent, non-political and professional Public Auditor. The Office will not be used for political purposes. Because of the format of the Appropriation Act of am left with no alternative but to veto each item appropriated to the Office of the Public Auditor. The Office of the Governor will make every effort to provide provisionary assignments for the staff in the Office of the Public Auditor with the cooperation of the Personnel Office. Until the matters complained of hcrcin relating to the Office of the Public Auditor arc resolved the Commonwealth

3 Governor's Action on House Bill No Page Three will continue to rely on financial reports issued by the Federal Comptroller. It is the desire of the Office of the Governor that the Legislature take expeditious action to assist in the resolution of the continuing problems underlying this veto. II. C M L SERVICE COMMISSION TITLE II SECTION 2, A, ITEM 1 IS VETOED AND DISAPPROVED TITLE 11, SECTION 2, A, ITEM 2 IS VETOED AND DISAPPROVED The appropriated items to the Civil Service Commission are the following reasons: a 1. The Civil Service Commission is not non-partisan and is not independent; and 2. The Civil Service Commissioners, with the exception of two of the seven members, are politically motivated; and 3. The provisions in Public Law No. 1-9 establishing the manner of selection of the Commissioners is an unconstitutional infringement upon the power of the Executive. The provisions are patently unfair in that the Speaker of the House and the President of the Senate selected six of the seven Civil Service Commissioners, leaving the Governor only one Commissioner to appoint, whereas the Executive Branch employs approximately 90% of the Civil Service employees; and 4. Certain non-personnel costs appropriated by this Budget Act are excessive, especially in the area of travel expenses and secretarial services. I want it made clear that the Executive Branch will not tolerate a partisan/political Commission. It is essential to the smooth operation of this Government that the Civil Service Commission be free of political influence, and that in fact it be non-partisan and independent as the Constitu tion mandates. Pursuant to Section 1 of Article III of the Constitution it is the solemn duty of the Executive to see that the laws are faithfully executed; I will do my constitutional duty, and I will defend the integrity of the Executive Branch. PERSONNEL OFFICE TITLE II, SECTION 2, B, ITEM 7 IS VETOED AND DISAPPROVED

4 Governor's Action On House Bill' No Page Four reason: The a Office The $6,800 for all other expenditures on Tinian is vetoed because this appropriation includes an excessive amount of travel funds for the Personnel Office. It not reasonably calculated that this Office should anticipate such a large t rave l budget. (Ihave great reservations concerning each and every item appropriated to the Personnel Office headed by a Personnel. Officer who is actively a member of the Republican Party and who in fact is the president of that political party. However, it is my concern for the employees of the Personnel Office and the many good and faithful civil servants who rely on the continuing day to day operation of this office that I refrain from vetoing every item appropriated to the Personnel Office. It is this concern that outweighs my disgust for the manner in which this office has been used for political gain and maneuvering.) XV. CAPITAL IMPROVEMENTS FOR ROTA TITLE II. SECTION 7, ITEM B IS VETOED AND DISAPPROVED The appropriated item for Capital Improvements for Rota is vetoed for the followina reasons: 1. Rota has been appropriated an amount which is excessive when the population of Rota is compared to the total population of the Commonwealth; and 2. Rota has been appropriated an amount which creates disproportionate inequities to the people of Tinian and Saipan; and 3. Rota has been appropriated an amount which creates an unjustifiable inequity to the people of Tinian. The Covenant treats Rota and Tinian in a substantially equal manner in regard to the capital improvement funds for the two senatorial districts, yet this appropriation treats Rota in a highly favorable manner, giving Rota in excess of $500,000 more than Tinian. There is no justification for such a distinct inequity between the two islands--the appropriation gives Rota 18.3% of the total Commonwealth CIP funds and Tinian receives only 11.9% of the total CIP funds.

5 Governor's Action on House Bill. No Page Six represents $32,291, of approved appropriations out of a total of $34,040,490.00, or 958 of the appropriations included in the bill. The Office of the Governor is available to discuss with the Legislature the actions taken and to elaborate on the reasons for those actions. We are understandably anxious to begin negotiations to bring about a speedy resolution to those items which are disapproved. I Carlos S. Camacho Governor

6 Governor's Action on House Bill No Page Five This creates a significant inequity in terms of dollars and capital improvements in favor of Rota and to the distinct disadvantage of Tinian; and 4. Inasmuch as the Chairman of the Rota Delegation has voiced serious concerns about the continuing union of Rota with the Commonwealth, and has raised the issue of possible secession from the Commonwealth, it would be inappropriate to invest large sums of money at this time in long t e n capital improvements until the desires of the people of Rota are determined in respect to continued union with the Commonwealth. (Certainly Rota is entitled to its Capital Improvement Projects share as earmarked in the Covenant, however, there is no justification for Rota to receive more than its share. Tinian should receive an amount relatively equal to what Rota receives for CIP.) V.. ECONOMIC DEVELOPMENT LOAN FUND BOARD I have grave concerns about the appropriations to the Economic Development Loan Fund Board. It appears that the total Economic Development Loan Fund (EDLF) grant for loans has been reduced to provide money for the operational costs of the fund. The Covenant provides that the annual federal financial support for economic development will be for a loan fund. It is the position of the Executive that the annual support grant is reserved for loans and not tor operational or administrative costs of the EDLF Board and staff. The full annual grant should be available for loans for economic development. The corpus of the loan fund should not be used for administrative costs, but such costs should be paid from the interest income of the corpus itself. It is my desire after consultation with Washington, DC officials that an amendment be made to the EDLF appropriations to reflect these concerns in order to not jeopardize the continuing receipt of the grant by our failure to abide by the intent of the Covenant. Because of the essential need to continue the EDLF program I will not veto any of these appropriation items, however by including my concerns in this letter I am strongly urging that remedial legislation be initiated to attend to these concerns. Of the total 131 items appropriated under this H.B. No. 2-88, I am approving 125 and vetoing and disapproving 6. This

7 SECOND NORTHERN MARIANAS COMMONWEALTH LEGISLATURE FIRST REGULAR SESSION Making appropriations for the operation of the Government of the Commonwealth of the Northern Mariana Islands, and to provide penalties for violation of the provisions of the Act; and for other purposes. BE IT ENACTED BY THE NORTHERN MARIANAS COMMONWEALTH LEGISLATURE: TITLE I. TITLE AND PURPOSE. Section 1. Short Title. This Act may be cited as the "Commonwealth Omnibus Appropriations Act of 1980". Section 2. Purpose. This Act appropriates funds for the operations and activities of the various branches, departments, offices, agencies, commissions, and instrumentalities of the Government of the Northern Mariana Islands, including the Offices of the Mayors. for Fiscal Year 1980, commencing October 1, 1979, extending through September 30, TITLE II. APPROPRIATIONS. Section 1. The sum of 27, is hereby appropriated from the General Fund for the operation and activities of the Executive Branch of the Government of the Commonwealth of the Northern Mariana Islands, and shall be allocated as follows: A. TO THE OFFICE OF THE GOVERNOR AND LIEUTENANT GOVERNOR: 1. For personal services and personnel benefits on Rota. not to exceed $10, For personal services aud personnel benefits on Tinian and Aguiguan, not to exceed... $ 9,800.00

8 For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $517, For all other necessary expenditures on Rota, not to exceed... $ 2, For all other necessary expenditures on Tinian and Aguiguan, not to exceed... $ 2, For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $280, TO THE OFFICE OF THE ATTORNEY GENERAL: For personal services and personnel benefits on Rota, not to exceed... $ 19, For personal services and personnel benefits on Tinian and Aguiguan, not to exceed... $ 10, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $197, For all other necessary expenditures on Rota, not to exceed... $ 3, For all other necessary expenditures on Tinian and Aguiguan, not to exceed... $ 2,100.00

9 House BILL NO For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $ 30, TO THE OFFICE OF THE PUBLIC DEFENDER: 1. For personal services and personnel benefits, not to exceed... $ 98, For all other necessary expenditures, not to exceed... $ 16, TO THE BOARD OF PROFESSIONAL LICENSING: 1. For personal services and personnel benefits. not to exceed... $ For all other necessary expenditures. not to exceed... $ 3, TO THE OFFICE OF THE PUBLIC AUDITOR: 1. For personal services and personnel benefits, not to exceed... $120, For all other necessary expenditures, not to exceed... $ 28, TO THE DEPARTMENT OF COMMUNITY AND CULTURAL AFFAIRS: 1. For personal services and personnel benefits on Rota, not to exceed... $ For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $

10 PUBLlC LAW No. 2-1 For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... For all other necessary expenditures on Rota, not to exceed... For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... G. TO THE BOARD OF PAROLE: 1 For personal services and personnel benefits, not to exceed For all other necessary expenditures. not to exceed... H. TO THE DEPARTMENT OF COMMERCE AND LABOR: For personal services and personnel benefits on Rota, not to exceed... $ For personal services and personnel benefits on Tinian and Aguiguan. not to exceed. $ 10, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $180, For all other necessary expenditures on Rota, not to exceed... $ 3,000.00

11 5. For a11 other necessary expenditures on Tinian and Aguiguan, not to exceed.. $ 2, For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $ 53, I. TO THE DEPARTMENT OF PUBLIC SAFETY: For personal services and personnel benefits on Rota, not to exceed... $ 49, For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $ 42, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... For all other necessary expenditures on Rota, not to exceed... For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... J. TO THE DEPARTMENT OF FINANCE: 1. For personal services and personnel benefits on Rota, not to exceed... $,45, For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $ 21,400.00

12 PUBLIC L4W NO. 2-1 For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $ 610, For all other necessary expenditures on Rota, not to exceed... $ 3, For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. $ 3, For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $ 100, TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENTAL SERVICES: For personal services and personnel benefits on Rota, not to exceed... $ 159, For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $ 70, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $1,400, For all other necessary expenditures on Rota, not to exceed... $ 28, For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. $ 10, For all other necessary expenditures on Saipan and the Northern Islands. not to exceed... $ 965,700.00

13 L. TO THE DEPARTMENT OF NATURAL RESOURCES: 1. For personal services and personnel benefits on Rota, not to exceed... $ 142, For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $ 96, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $ 561, For all other necessary expenditures on Rota, not to exceed... $ 38, For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. $ 27, For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $ 103, M. TO THE DIVISION OF LAND COMMISSION: 1. For personal services and personnel benefits on Rota, not to exceed... $ 47, For personal services and personnel benefits in the Commonwealth, exclusive of Rota, nottoexceed... $ 71, For all other necessary expenditures on Rota. not to exceed... $ 1,300.00

14 4. For all other necessary expenditures in the Commonwealth, exclusive of Rota, not to exceed... $ 4, N. TO THE DEPARTMENT OF EDUCATION: For personal services and personnel benefits on Rota, not to exceed... $ 238, For personal services and personnel benefits on Tinian and Aguiguan. not to exceed. $ 124, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... For curriculum development and training under Section 702(a) of the Covenant, to be administered in accordance with existing law, not to exceed... For all other necessary expenditures on Rota, not to exceed... For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. For all other necessary expenditures on Saipan and the Northern Islands, not to exceed TO THE DEPARTMENT OF PUBLIC WORKS: 1. For personal services and personnel benefits on Rota, not to exceed... $ 218,500.00

15 PUBLIC IAW NO. 2-1 For personal services and personnel benefits on Tinian and Aguiguan, not to exceed. $ 123, For personal services and personnel benefits on Saipan and the Northern Islands, not to exceed... $ For all other necessary expenditures on Rota, not to exceed... $ 418, For all other necessary expenditures on Tinian and Aguiguan, not to exceed.. $ 236, For all other necessary expenditures on Saipan and the Northern Islands, not to exceed... $3,922, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section. are to be used by the respective public officers granted authority to expend public funds as administrative guidelines for the purposes of allocating funds appropriated by this section. No funds allocated by this section for "other necessary expenditures" may be used to enter into independent contractor contracts for purposes other than those for which the appropriation was made, without following the reprogramming provisions contained in this sect ion. The Governor may not reprogram resources appropriated by this section. except pursuant to the provisions of this paragraph. (a) Resources allocated for the Office of the Public Auditor

16 and for curriculum development and training by the Department of Education may not be reprogrammed by the Governor. (b) The Governor may reprogram up to ten percent of the resources appropriated by this section, other than those identified in subparagraph (a), cumulative a n d in total, for any purpose authorized by law: Provided. that any reprogramming which increases or decreases the amount allocated by this section for a particular Executive department, program, or other entity by more than ten percent, cumulative and in total. shall be subject to approval pursuant to subparagraph (c); and Provided further, that any reprogramming pursuant to an executive order issued pursuant to Section 15 of Article I I I of the Constitution of the Northern Mariana Islands, which establishes a new position, function, program, or duty, not otherwise authorized by law, shall be subject to approval pursuant to subparagraph (c). (c) The Governor may make a request of the Legislature to reprogram resources other than as authorized in subparagraph (b). Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature, unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee may propose to amend the request. If the other Committee does not agree to

17 such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the Governor may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the two Committees do not agree on any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to resolve them and to arrive at a solution, if possible, before taking final action on the request. (d) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming, the cumulative amount of all reprogramming during the fiscal year under each of subparagraphs (b) and (c) and in total, and such other information as may be requested by the two Chairmen. The heads of departments and entities of the Executive Branch to which funds are allocated by this section may reprogram funds within their jurisdiction in an amount that does not increase or decrease the amount allocated by this section to a particular program, project, or function by more than twenty percent: Provided, that the. head of a department or entity of the Executive Branch may not reprogram funds within his jurisdiction without the written approval of the Governor. The Governor or his authorized designee is authorized to expend,

18 obligate, encumber, or otherwise commit funds appropriated or allocated by this section, except that the Public Auditor is authorized to expend. obligate, encumber, or otherwise commit funds allocated for the Office of the Public Auditor. The Public Auditor shall audit the expenditure, obligation, encumbrance, or other commitment of funds appropriated or allocated by this section and shall, in writing, report all violations of this section to the Governor and to the Legislature. The Public Auditor and his authorized representatives shall have ready access to persons and may examine and copy such records. accounts, papers, reports, vouchers, correspondence, books, and any other documentation of any Commonwealth agency or political subdivision, necessary to such audits. The Public Auditor shall, for the purpose of examination and audit authorized by this section, have the authority, and will be provided ready access, to examine and inspect all property, equipment, and facilities in the possession of any Commonwealth agency or political subdivision. The Public Auditor is authorized to make financial audits of any branch, department, activity, or instrumentality of the government as he deems appropriate for the public interest. Reports of such audits will be made to the Governor and to the Legislature. Copies of such reports will be made public. Section 2. The sum of $683, is hereby appropriated from the General Fund for the operation and activities of the Civil Service

19 PUBLIC LAW No. 2-1 Commission, and shall be allocated as follows: A. TO THE OFFICE OF THE CIVIL SERVICE COMMISSION: For personal services and personnel benefits, not to exceed... $ 16, For all other necessary expenditures, not to exceed... $ 32, B. TO THE PERSONNEL OFFICE: 1. For personal services and personnel benefits on Rota, not to exceed... $ 15, For personal services and personnel benefits on Tinian and Aguiguan. not to exceed.. $ 20, For personal services and personnel benefits on Saipan and the Northern Islands. not to exceed... $ 143, For training activities pursuant to Section 702(a) of the Covenant. to be administered in accordance with existing law, not to exceed... $ 197, For Government-wide benefits, including housing and furniture, personnel insurance, and recruitment and repatriation, not to exceed... $ 214, For all other necessary expenditures on Rota, not to exceed... $ 4, For all other necessary expenditures on Tinian and Aguiguan, not to exceed... $ 6,800.00

20 PUBLIC LAW No For all other necessary expenditures on Saipan and the Northern Islands. not to exceed $ 34, Funds allocated by Allocation 8.4. of this section may be used to pay independent contractors who provide training services, and to fund the salaries of full-time employees to administer training activities: Provided, that such salaries and other related administrative expenses shall not exceed $45, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section, are to be used by the respective public officers granted authority to expend public funds as administrative guidelines for the purpose of allocating funds appropriated by this section. No funds allocated by this section for "other necessary expenditures" may be used to enter into independent contractor contracts for purposes other than those for which the appropriation was made, without following the reprogramming provisions contained in this section. The Chairman of the Civil Service Commission and the Personnel Officer may not reprogram resources appropriated by this section, except pursuant to the provisions of this paragraph. (a) Resources allocated for training activities may not be reprogrammed. (b) The Chairman of the Civil Service Commission and the

21 Personnel Officer may reprogram resources allocated by this section to their respective offices, other than those identified in subparagraph (a): Provided, that any reprogramming which increases or decreases the amount of any allocation by more than twenty percent, cumulative and in total, shall be subject to approval pursuant to subparagraph (c); and Provided further, that any reprogramming from the allocation for Government-wide benefits shall be subject to approval pursuant to subparagraph (c). (c) The Chairman of the Civil Service Commission or the Personnel Officer may make a request of the Legislature to reprogram resources other than as authorized in subparagraph (b). Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature, unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee may propose to amend the request. If the other Committee does not agree to such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the requesting official may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the two Committees do not agree on

22 any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to resolve them and to arrive at a solution, if possible, before taking final action on the request. (d) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming, the cumulative amount of all reprogramming during the fiscal year under each of subparagraphs (b) and (c) and in total, and such other information as may be requested by the two Chairmen. The Chairman of the Civil Service Commission and the Personnel Officer, as appropriate, shall notify the Governor within ten days after any reprogramming action or request under this paragraph. The Chairman of the Civil Service Commission or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds allocated for the office of the Civil Service Commission. The Personnel Officer or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds allocated for the Personnel Office. The Public Auditor shall audit the expenditure, ohligation, encumbrance, or other commitment of funds appropriated or allocated by this section and shall, in writing, report all violations of this section to the Governor and to the Legislature. The Public Auditor and his authorized representatives shall have ready access to persons and may examine and copy such records,

23 accounts, papers, reports, vouchers, correspondence, books, and any other documentation of any Commonwealth agency or political subdivision, necessary to such audits. The Public Auditor shall, for the purpose of examination and audit authorized by this section, have the authority, and will be provided ready access, to examine and inspect all property, equipment, and facilities in the possession of any Commonvealth agency or political subdivision. The Public Auditor is authorized to make financial audits of any branch, department. activity, or instrumentality of the government as he deems appropriate for the public interest. Reports of such audits will be made to the Governor and to the Legislature. Copies of such reports will be made public. Section 3. The sum of $260, is hereby appropriated from the General Fund for the operation and activities of the Judicial Branch of the Government of the Commonwealth of the Northern Mariana Islands. and shall be allocated as follows: TO THE JUDICIAL BRANCH: 1. For personal services and personnel benefits, not to exceed For Jury Trial expenses, not to exceed For all other necessary expenditures. not to exceed...

24 The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section, are to be used by the Chief Judge as administrative guidelines for the purposes of allocating funds appropriated by this section. No funds allocated by this section for "other necessary expenditures" may be used to enter into independent contractor contracts for purposes other than those for which the appropriation was made, without following the reprogramming provisions contained in this section. The Chief Judge may not reprogram resources appropriated by this section, except pursuant to the provisions of this paragraph. (a) The Chief Judge may reprogram resources appropriated by this section: Provided, that any reprogramming which increases or decreases the amount of any allocation by more than twenty percent, cumulative and in total, shall be subject to approval pursuant to subparagraph (b). (b) The Chief Judge may make a request of the Legislature to reprogram resources other than as authorized in subparagraph (a). Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature, unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee

25 PUBLIC NO. 2-1 may propose to amend the request. If the other Committee does not agree to such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the Chief Judge may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the tvo Committees do not agree on any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to resolve them and to arrive at a solution, if possible, before taking final action on the request. (c) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming, the cumulative amount of all reprogramming during the fiscal year under each of subparagraphs (a) and (b) and in total, and such other information as may be requested by the two Chairmen. The Chief Judge shall notify the Governor within ten days after any reprogramming action or request under this paragraph. The Chief Judge or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds appropriated or allocated by this section. Section 4. The sum of $1,800, is hereby appropriated from

26 the General Fund for the operation and activities of the Legislative Branch of the Government of the Commonwealth of the Northern Mariana Islands, and shall be allocated as follows: TO THE HOUSE OF REPRESENTATIVES: 1. For operations and activities. not to exceed For the Minority, not to exceed... TO THE SENATE: 1. For operations and activities. not to exceed For the Minority, not to exceed... TO JOINT OPERATIONS: 1. For the operation and activities of the Rota Delegation Office, not to exceed... $ 28, For the operation and activities of the Tinian Delegation Office, not to exceed... $ 24, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the emounts appropriated and allocated in this section, are to be used by the respective public officers granted authority to expend public funds as administrative guidelines for the purposes of allocating funds appropriated by this section. The Speaker of the House of Representatives or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds allocated by this section for operations and activities

27 of the House of Representatives. The President of the Senate or his authorized designee is authorized to expend, obligate, encumber or otherwise commit funds allocated by this section for the operations and activities of the Senate: Provided, that one-half of the outstanding obligations and unrecorded liabilities for joint administrative expenses of the First Northern Marianas Commonwealth Legislature, not to exceed $25,000.00, shall be charged against such funds. The Minority Leader of the House of Representatives or his authorized designee is authorized to expend, obligate, encumber. or otherwise commit funds allocated by this section for the Minority of the House of Representatives. The Minority Leader of the Senate or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds allocated by this section for the Minority of the Senate. The Chairman of the Rota Delegation may expend. obligate, encumber, or otherwise commit funds allocated by this section for the operation of the Rota Delegation Office. The Chairman of the Tinian Delegation or the Members of the Tinian Delegation by written memorandum, may expend, obligate, encumber, or otherwise commit funds allocated by this section for the operation of the Tinian Delegation Office. The Public Auditor shall audit the expenditure, obligation, encumbrance, or other commitment of funds appropriated or allocated by this section and shall, in writing, report all violations of this section to the Governor and to the Legislature. The Public Auditor and his authorized representatives shall have

28 ready access to persons and may examine and copy such records, accounts, papers, reports, vouchers, correspondence, books, and any other documentation of any Commonwealth agency or political subdivision, necessary to such audits. The Public Auditor shall, for the purpose of examination and audit authorized by this section, have the authority, and will be provided ready access, to examine and inspect all property. equipment, and facilities in the possession of any Commonwealth agency or political subdivision. The Public Auditor is authorized to make financial audits of any branch, department, activity, or instrumentality of the Government as he deems appropriate for the public interest. Reports of such audits will be made to the Governor and to the Legislature. Copies of such reports will be made public. Section 5. The sum of $294, is hereby appropriated from the General Fund for the operation and activities of the Office of the Representative to the United States for the Commonwealth of the Northern Mariana Islands, and shall be allocated as follows: A. TO THE OFFICE OF THE REPRESENTATIVE TO THE UNITED STATES FOR THE OPERATION OF THE WASHINGTON, D.C. OFFICE: 1. For personal services and personnel benefits, not to exceed... $121, For all other necessary expenditures, not to exceed... $ 74,400.00

29 B. TO THE OFFICE OF THE REPRESENTATIVE TO THE UNITED STATES FOR THE OPERATION OF THE HAWAII LIAISON OFFICE: 1. For personal services and personnel benefits, not to exceed...-- $ 40, For all other necessary expenditures, not to exceed... $ 44, C. TO THE OFFICE OF THE REPRESENTATIVE TO THE UNITED STATES FOR THE OPERATION OF THE GUAM LIAISON OFFICE: 1. For personal services and personnel benefits, not to exceed... $ 7, For all other necessary expenditures, not to exceed... $ 7, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section, are to be used by the Representative to the United States as administrative guidelines for the purposes of allocating funds appropriated by this section. No funds allocated by this section for "other necessary expenditures" may be used to enter into independent contractcr contracts for purposes other than those for which the appropriation was made, without following the reprogramming provisions contained in this section. The Representative to the United States or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds appropriated by this section. The Representative to the United States may not reprogram resources appropriated by this section, except pursuant to the

30 provisions of this paragraph. (a) The Representative to the United States may reprogram resources appropriated by this section: Provided, that any reprogramming which increases or decreases the amount of any allocation by more than twenty percent, cumulative and in total. shall be subject to approval pursuant to subparagraph (b). (b) The Representative to the United States may make a request of the Legislature to reprogram resources other than as authorized in subparagraph (a). Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature. unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee may propose to amend the request. If the other Committee does not agree to such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the Representative to the United States may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the two Committees do not agree on any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to

31 resolve them and to arrive at a solution, if possible, before taking final action on the request. (c) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming, the cumulative amount of all reprogramming during the fiscal year under each of subparagraphs (a) and (b) and in total, and such other information as may be requested by the two Chairmen. The Representative to the United States shall notify the Governor within ten days after any reprogramming action or request under this paragraph. The allocation for the operation of the Guam Liaison Office shall not become effective unless and until legislation authorizing such off ice is enacted into law. Section 6. The sum of $178, is hereby appropriated from the General Fund for the operations and activities of the Offices of the Mayors of the Government of the Commonwealth of the Northern Mariana Islands. and shall be allocated as follows: TO THE OFFICE OF THE MAYOR OF SAIPAN: 1. For personal services and personnel benefits, -- not to exceed... $37, For all other necessary expenditures, not to exceed... $13, TO THE OFFICE OF THE MAYOR OF ROTA: 1. For personal services and personnel

32 benefits, not to exceed... $39, For all other necessary expenditures, not to exceed... $10, TO THE OFFICE OF THE MAYOR OF TINIAN AND AGUIGUAN: 1. For personal services and personnel benefits, not to exceed... $43, For all other necessary expenditures, not to exceed... $ 7, TO THE OFFICE OF THE MAYOR OF THE ISLANDS NORTH OF SAIPAN: 1. For personal services and personnel benefits, not to exceed... $18, For all other necessary expenditures, not to exceed... $ 7, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section, are to be used by the respective public officers granted authority to expend public funds as administrative guidelines for the purposes of allocating funds appropriated by this section. No funds allocated by this section for "other necessary expenditures" may be used to enter into independent contractor contracts for purposes other than those for which the appropriation was made, without following the reprogramming provisions contained in this section. A Mayor may not reprogram resources appropriated by this

33 section, except pursuant to the provisions of this paragraph. (a) A Mayor may reprogram resources allocated by this section to his office: Provided, that any reprogramming which increases or decreases the amount of any allocation by more than twenty percent, cumulative and in total. shall be subject to approval pursuant to subparagraph (b). (b) A Mayor may make a request of the Legislature to reprogram resources other than as authorized in subparagraph (a). Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature, unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee may propose to amend the request. If the other Committee does not agree to such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the requesting Mayor may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the two Committees do not agree on any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to resolve

34 them and to arrive at a solution, if possible, before taking final act ion on the. request. (c) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming, the cumulative amount of all reprogramming during the fiscal year under each of subparagraphs (a) and (b) and in total. and such other information as may be requested by the two Chairmen. The appropriate Mayor shall notify the Governor within ten days after any reprogramming action or request under this paragraph. A mayor or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds allocated to his office by this section. The Public Auditor shall audit the expenditure, obligation, encumbrance, or other commitment of funds appropriated or allocated by this section and shall, in writing, report all violations of this section to the Governor and to the Legislature. The Public Auditor and his authorized representatives shall have ready access to persons and may examine and copy such records, accounts, papers, reports, vouchers, correspondence, books, and any other documentation of any Commonwealth agency or political subdivision, necessary to such audits. The Public Auditor shall, for the purpose of examination and audit authorized by this section, have the authority, and will be

35 provided ready access, to examine and inspect all property. equipment. and facilities in the possession of any Commonwealth agency or political subdivision. The Public Auditor is authorized to make financial audits of any branch, department, activity, or instrumentality of the government as he deems appropriate for the public interest. Reports of such audits will be made to the Governor and to the Legislature. Copies of such reports will be made public. Section 7. The sum of $8,449, is hereby appropriated from the General Fund for Capital Improvements for the Commonwealth of the Northern Mariana Islands, and shall be allocated as follows: A. To and for Saipan, not to exceed... $5,778, B. To and for Rota, not to exceed... $1,545, C. To and for Tinian and Aguiguan, not to exceed... $1,004, D. To and for the islands north of Saipan, not to exceed... $ 122, The detailed worksheets, schedules, and tables submitted to the Legislature by the Governor, as modified to reflect the amounts appropriated and allocated in this section, are to be used by the Governor as administrative guidelines for the purposes of allocating funds appropriated by this section. The Governor may not reprogram resources appropriated by this section, except pursuant to the provisions of this paragraph. (a) The Governor may make a request of the Legislature

36 to reprogram resources appropriated by this section. Such request shall be made in writing to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Fiscal Affairs. Such request shall be considered approved by the Legislature, unless either Committee disapproves the request within twenty calendar days following the date of official receipt of the request. Either Committee may propose to amend the request. If the other Committee does not agree to such an amendment within the twenty-day period, the request shall be considered disapproved. If the other Committee agrees to the amendment, the request shall be considered approved as amended, except that the Governor may choose not to carry out the reprogramming if he does not concur with the amendment. If one Committee disapproves the request and the other does not, or if the two Committees do not agree on any amendment to the request, the two Chairmen shall arrange a joint meeting of the two Committees to discuss their differences in an attempt to resolve them and to arrive at a solution, if possible. before taking final action on the request. (b) All reprogramming shall be reported in writing to the two Chairmen each calendar quarter and shall include a description of each item reprogrammed, the reason for each reprogramming. the cumulative amount of all reprogramming during the fiscal year under subparagraph (a) and such other information

37 as may be requested by the two Chairmen. The Governor or his authorized designee is authorized to expend, obligate, encumber, or otherwise commit funds appropriated by this section. The Public Auditor shall audit the expenditure, obligation. encumbrance, or other commitment of funds and shall, in writing, report all violations of this section to the Governor and to the Legislature. The Public Auditor and his authorized representatives shall have ready access to persons and may examine and copy such records. accounts, papers, reports, vouchers, correspondence, books, and any other documentation of any Commonwealth agency or political subdivision, necessary to such audits. The Public Auditor shall, for the purpose of examination and audit authorized by this section, have the authority, and will be provided ready access, to examine and inspect all property. equipment, and facilities in the possession of any Commonwealth agency or political subdivision. The Public Auditor is authorized to make financial audits of any branch, department, activity, or instrumentality of the government as he deems appropriate for the public interest. Reports of such audits will be made to the Governor and to the Legislature. Copies of such reports will be made public. Section 8. The sum of $2,765, is hereby appropriated from the General Fund for the operation and activities of the Economic