16 JAN qrutes. Dear Mr. Speaker and Mr. President:

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1 RALI'H DLG. TORRES Governor The Honorable BIas Jonathan " BJ" T. Attao Speaker House of Representatives Twenty-First Northem Marianas Commonwealth Legislature Capitol Hill Saipan, MP COMMONWEAl:rH of the NO RT HERN MARIANA ISlANDS OFFICE OF THE GOVERNOR ARNOLD I. PALACIOS Lieutenant Governor 16 JAN 2019 The Honorable Victor B. Hocog Senate President The Senate Twenty-First Northem Marianas Commonwealth Legislature Capitol Hill Saipan, MP Dear Mr. Speaker and Mr. President: This is to inform you that I have signed into law House Bill No entitled, "To establish a new salary level for members of the Legislature.", which was passed by the House of Representatives and the Senate of the Twentieth Northern Marianas Commonwealth Legislature. This bill becomes Public Law No Copies bearing my signature are forwarded for your reference. qrutes cc: Lt. Governor; Press Secretary; Attorney General's Office; Secretary of Finance; Office of Public Auditor; Special Assistant for Administration; Special Assistant for Programs and Legislative Review CNMI Office of the Governor 1 Juan A. Sab lan Memorial Building 1 Capitol Hill, Saipan Caller Box Saipan. MP Telephone: (670) Facsimile: (670) (j Ralph DLG. Torres I (j CNMI Office of the Governor

2 House of ~resentatives 20 th NORTHERN MARIANAS COMMONWEALTH LEGISLATURE P.o. BOX SAIPAN, MP January 11,2019 The Honorable Ralph DLG. Torres Governor Commonwealth of the Northern Mariana Islands Capitol Hill Saipan, MP Dear Governor Torres: I have the honor of transmitting herewith for your action H.B. No , entitled: "To establish a new salary level for members of the Legislature.", which was passed by the House of Representatives and the Senate of the Twentieth Northern Marianas Commonwealth Legislature. Sincerely yours, ~"M "'I-kluse...Gi 'rk Attachment

3 7'wentietfi egiscature ojtfie Commanweaftfi of the :Nortfiern ~ariana Isfancfs IN THE HOUSE OF REPRESENTATIVES Fourth Regular Session January 9, 2019 REPRESENTATIVE RAFAEL S. DEMAPAN of Saipan, Precinct 2 (jor himself,) in an open and public meeting with an opportunity for the public to comment, introduced the following Bill: NO. 2o-Ut7 ANA.CT TO ESTABUSH A. NEW SA.IABY LEVEL FOR BEBBERS OF THE LEGISlATURE. The Bill was not referred to a House Committee. TH E BILL WAS PASSED BY THE HOUSE OF REPRESENT A TIVES ON FIRST AND FINAL READING, JANUARY 10,2019; without amendments and transmitted to the THE SENATE. The Bill was not referred to a Senate Committee. THE BILL WAS PASSED BY THE SENATE ON FIRST AND FINAL READING, JANUARY 11, 2019; without amendments and was returned to THE HOUSE OF REPRESENTATIVES. THE BILL WAS FINALLY PASSED ON JANUARY 10, LO"~"OOCI"k

4 Twentietli Legisfature oftlie Commonwea[th of tlie :Northern Mariana Isfand's IN THE HOUSE OF REPRESENTATIVES ELEVENTH DAY, FOURTH REGULAR SESSION JANUARY 10,2019 H. B. No AN ACT TO IlS'I'1\.nUSII 1\ Nil'" SI\UIlY Ul,Tllf. Hnt ~lil~linllts Ul(JISI.J\TUlUl. 011 TIlIl Be it enacted by the Twentieth Northern Marianas Commonwealth Legislature: 1 Section 1. Findings. The Commonwealth Superior Court in Manibusan v. Larson, 2 Civil Action No found that there had not been an increase in the salaries of 3 members of the legislature from the $8, salary that was established in January The Court' s order provided that the current salary of $39, would continue for the 5 duration of the 20 th Legislature, and that the annual salary of $8, would go into effect 6 with the beginning of the 21 SI Legislature, unless the 20 th Legislature takes the necessary 7 action to increase the legislative salary. 8 In order to effectuate a salary lllcrease for the 21 SI Legislature, an Advisory 9 Commission on the Compensation of Commonwealth Executive, Legislative and Judicial 10 Officers was established by PL 20-71, pursuant to Article II, Sec. 10 of the N.M.I. 11 Constitution, to make recommendations concerning compensation of the members of the

5 HOUSE BILL Legislature. Pursuant to Article II, Sec. 10 of the N.MJ. Constitution, "No change in the 2 salary may be made that exceeds the percentage change in an accepted composite price index 3 for the period since the last change." 4 The Advisory Commission has convened and conducted its review on the 5 compensation of the elected and appointed government officials. On November 10, 2018, the 6 Advisory Commission transmitted its final report and recommendation on the compensation 7 of the elected and appointed officials. The Advisory Commission found that the "Consumer 8 Price Index" was an accepted composite price index. However, the Commission based its 9 salary recommendation of $39, on an average of a wage index created by the 10 Commission and the Consumer Price Index. The Attorney General gave his opinion that the 11 use of the wage index established by the Commission was not a use of an accepted price 12 index within the meaning of the Constitution. Using the change in the Consumer Price Index 13 from the establishment of the original salaries for members of the Legislature in January to the present, a maximum permissible salary would be $32, The Legislature 15 believes that the armual salary for members of the Legislature should be based on the change 16 in the Consumer Price Index and not the index created by the Commission. The Legislature 17 believes that the armual salary for members of the Legislature should be $32,000.00, 18 consistent with the percentage change in the Consumer Price Index from January 1978 to the 19 present. 20 Section 2. Repeal and Reenactment. Title 1, Section 1271 of the Commonwealth 21 Code is repealed and reenacted as follows: 22 " Legislators' Salaries. 23 The members of the legislature shall receive an annual salary of $32, " 24 Section 3. Implementation. The new salary level for the members of the legislature 25 established by this Act shall be implemented beginning with the 21 SI Legislature. 2

6 HOUSE BILL Section 4. Severabilitv. If any provisions of this Act or the application of any such 2 provision to any person or circumstance should be held invalid by a court of competent 3 jurisdiction, the remainder of this Act or the application of its provisions to persons or 4 circumstances other than those to which it is held invalid shall not be affected thereby. 5 Section 5. Savings Clause. This Act and any repealer contained herein shall not be 6 construed as affecting any existing right acquired under contract or acquired under statutes 7 repealed or under any rule, regulation, or order adopted under the statutes. Repealers 8 contained in this Act shall not affect any proceeding instituted under or pursuant to prior law. 9 The enactment of the Act shall not have the effect of terminating, or in any way modifying, 10 any liability, civil or criminal, which shall already be in existence on the date this Act 11 becomes effective. 3

7 HOUSE BILL Section 6. Effective Date. This Act shall take effect upon its approval by the 2 Governor, or its becoming law without such approval. Attested to by: ouse Clerk Certified by: House of Representatives 20 th Northern Marianas Commonwealth Legislature -f-f--'-'-=---\,----'

COMMONWEALTllof the NORTI tern MAlUANA ISI..A1'.'DS OFfiCE OF THE GOVERNOR

RALPH DlG. TORRES Governor VICTOR B. HOCOG Lieutenant Governor. COMMONWEALTllof the NORTI tern MAlUANA ISI..A1'.'DS OFfiCE OF THE GOVERNOR 05 OCT 2018 The Honorable Arnold I. Palacios Senate President,