COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

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COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Eloy S. Inos Governor Jude U. Hofschneider Lieutenant Governor JJ DEC 2014 Honorable Ramon A. Tebuteb Chairman, Saipan & Northern Island Legislative Delegation Eighteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950 Honorable Joseph P. Deleon Guerrero Speaker, House of Representatives Eighteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950 Dear Mr. Chairman and Mr. Speaker: This is to inform you that I have approved in part, and disapproved in part, House Local Bill No. 18-63,D2, an Act "[t]o appropriate $3,672,000.00 from revenues to be collected pursuant to Saipan Local Law 11-2 as amended, anticipated being collected for Fiscal Year 2015; and for other purposes," which was passed by the Saipan and Northern Islands Legislative Delegation of the Eighteenth Northern Marianas Commonwealth Legislature. HLB 18-63, D2 seeks to appropriate up to $3,672,000.00 from local poker license fees of the Third Senatorial District for sixteen separate items. Section 2 of the bill lists the items of appropriation. Under Section 2(B)(8), the bill lists "$200,000 to be equally distributed to each Precinct [.]" An appropriation is an act of the Legislature that authorizes Commonwealth agencies to incur obligations and make payments from the Treasury for "specified purposes." 1 CMC 7103(c). The appropriation must be for a public purpose and the expenditure may only be made pursuant to law. N.M.!. Const., art. X, 1. Nearly all of the line items of appropriation listed in HLB 18-63, D2 are for a specific and public purpose as required by law. However, line item Section 2(B)(2) does not satisfy this criteria. Caller Box 10007 Saipan, MP 96950 Telephone: (670) 664-2200 12300 Facsimile: (670) 664-221112311

Honorable Ramon A. Tebuteb Honorable Joseph P. Deleon Guerrero December 31, 2014 Page -2- Section 2(B)(2) merely states that "$200,000 to be equally distributed to each Precinct." First, a precinct is not an entity or program upon which funds can be bestowed upon unlike, for example, SHEF A. Second, Section 2(B)(8) does not state a specific purpose or any purpose whatsoever for what the expenditure authority is to use the funds for. This makes it impossible for the expenditure authority to determine whether the funds are being expended for a proper and public purpose as required by law. I believe such deficiency requires me to disapprove Section 2(B)(2). I therefore exercise the line item veto authority granted in Article II, Section 7(a) of the Commonwealth Constitution and disapprove said section. For the reasons stated above, I am returning House Local Bill 18-63, D2 approved in part and disapprov d in part. Thank you for your understanding on this matter. Sincerely, =-. '\ \= "--' ELOY S. INOS CC: Lt. Governor Press Secretary, Office of the Governor Special Assistant for Programs & Legislative Review Caller Box 10007 Saipan, MP 96950 Telephone: (670) 664-2200 12300 Facsimile: (670) 664-221112311

Saipan & Northern Islands Legislative Delegation Eighteenth Northern Marianas Commonwealth Legislature Third Senatorial District P.O. Box 500586 Saipan, MP 96950 Representative John Paul P. Sablan, Vice Chainnan Representative Ramon A. Tebuteb, Chainnan Senator Pete P. Reyes, Floor Leader December 16, 2014 Honorable Eloy S. Inos Governor Commonwealth of the Northern Mariana Islands Saipan, MP 96950 Dear Governor Inos: I am honored to transmit for your action House Local Bill No. 18-63, D2, entitled, "A Local Appropriation Bill For An Act For The Third Senatorial District "To appropriate $3,672,000.00 from revenues to be collected pursuant to Saipan Local Law 11-2 as amended, anticipated being collected for Fiscal Year 2015; and for other purposes.. " This bill was passed unanimously by the Saipan and Northern Islands Legislative Delegation of the Eighteenth Northern Marianas Commonwealth Legislature, a quorum duly present, on First and Final Reading during its Fifth Day, Fourth Regular Session 2014 on December 11, 2014. Sincerely,, NGUERRERO Enclosures

SAl PAN AND NORTHERN ISLANDS LEGISLATIVE DELEGATION EIGHTEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE FOURTH REGULAR SESSION, 2014 HOUSE LOCAL BILL NO. 18-63, D2 A LOCAL APPROPRIATION BILL FOR AN ACT FOR THE THIRD SENATORIAL DISTRICT To appropriate $3,672,000.00 from revenues to be collected pursuant to Saipan Local Law 11-2 as amended, anticipated being collected for Fiscal Year 2015; and for other purposes. Offered by Representative Ralph N. Yumul and one other on September 19, 2014 HOUSE ACTION Transmitted to Saipan and Northern Islands Legislative Delegation for action on October 3,2014 DELEGATION ACTION Referred To Comments Solicited Comments Received Standing Committee Report Passed First & Final Reading SNILD Committee on Ways & Means (10/23/14) Mayor of Saipan; Mayor of Northern Islands; Chairman, SNI Municipal Council (10/3/14) Mayor of Saipan (10/21114) None December 11,2014 (wid2) Alicia DLG. Leo uerrero, Delegation Clerk

SAIPAN AND NORTHERN ISLANDS LEGISLATIVE DELEGATION Third Senatorial District Eighteenth Northern Marianas Commonwealth Legislature FOURTH REGULAR SESSION,2014 HOUSE LOCAL BILL NO. 18-63, D2 A LOCAL APPROPRIATION BILL FOR AN ACT FOR THE THIRD SENATORIAL DISTRICT To appropriate $3,672,000.00 from revenues to be collected pursuant to Saipan Local Law 11-2 as amended, anticipated being collected for Fiscal Year 2015; and for other purposes. BE IT ENACTED BY THE THIRD SENATORIAL DISTRICT DELEGATION PURSUANT TO CHAPTER 4, DIVISION 1, TITLE 1 OF THE COMMONWEALTH CODE: Section 1. Purpose. The purpose of this Act is to appropriate local funds for various purposes as follows: (a) Up to $3,672,000.00 from the revenues generated from the poker fees to be collected for fiscal year 2015 pursuant to Saipan Local Law 11-2 as amended. Section 2. Appropriation. Notwithstanding any provision of law, the Saipan and Northern Islands Legislative Delegation (SNILD) hereby appropriates $3,672,000.00 of the revenues to be collected for fiscal year 2015 pursuant to Saipan Local Law 11-2 as amended as follows: 1 1 13 (A) (B) $3,000,000.00 to Saipan Higher Education Financial Assistance (SHEF A); $672,000.00 shall be allocated as follows: (1) $100,000.00 for the SHEF A operations; (2) $25,000.00 for the Saipan Little League; (3) $15,000.00 for the 31 st Annual Flame Tree Arts Festival; (4) $5,000.00 for the Agricultural Fair;

House Local Bill No. 18-63. D2 (5) $30,000.00 for the Saipan Zoning Office for Enforcement and Operations;, (6) $20,000.00 for the Liberation Day activities; (7) $50,000.00 for the Cultural Village TIPIEEW; (8) $20<1;000 to-be-eqttahy-distributed to each Precinct, (9) (i) $105,000.00 for the Medical Referral Program for patient(s) stipend(s) for the Saipan and Northern Islands patients. The expenditure authority for these funds shall be the Secretary of Finance; (ii) $15,000.00 for the Saipan and Northern Islands Legislative Delegation (SNILD) operational funds under the expenditure authority of SNILD Chairman; and (10) $5,000.00 for Saipan Fishing Derby; (11) $12,000.00 for the procurement of two (2) Port-A-CooI36" evaporator cooler units by the Department of Community and Cultural Affairs; (12) $10,000.00 for the NMI Crime Stoppers; (13) $30,000.00 for the paving of a section of Mt. Tapochau Road; and (14) $50,000.00 for the District Tournament Committee to host the District and Regional Tournaments. 21 Section 3. Expenditure Authority. The expenditure authority for the funds under 22 Section 2(A), (B)(l) shall be the SHEF A Board Chairperson in concurrence with the SHEF A 23 Board; provided further, that no funds appropriated herein should be expended for consulting 24 and/or professional services contracts. The expenditure authority for the funds under Section 25 2(B)(2) thru (8) and (10) thru (14) of this Act shall be the Secretary of Finance. 2

House Local Bill No. 18-63. D2 Section 4. Reprogramming. Funds appropriated under this act shall not be reprogrammed for any other purpose. Funds allotted under Section 2(B)(1) of this Act shall not be used for consulting and/or professional services contracts. Notwithstanding any provision of law, all capital improvement projects funded under this Act shall be without fiscal year limitation. Section 5. Allotment of Funds. In the event that the revenue collections do not meet the appropriated amount in this Act, the Secretary of Finance shall allot each program an amount based on the percentage of the programs appropriation proportionately. Section 6. Management of Funds. 1 (A) The Secretary of Finance shall regulate and control the expenditure of the 1 funds appropriated by this Act to ensure that appropriated funds are not expended 1 contrary to the law, fiscal management policies, and practices of the Commonwealth. 1 (B) Public Accountability. The Secretary of Finance shall regulate and 1 control the expenditure of the funds appropriated by this Act to ensure that 1 appropriated funds are not expended contrary to the law, fiscal management policies, 1 and practices of the Commonwealth. All funds are subject to public accountability and 1 all recipients shall provide a detailed written report concerning the use of all funds 1 expended. 1 Section 7. Severability. If any provision 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 21 jurisdiction, the remainder of this Act or the application of its provisions to persons or 22 circumstances other than those to which it is held invalid shall not be affected thereby. 23 Section 8. Savings Clause. This Act and any repealer contained herein shall not be 24 construed as affecting any existing right acquired under contract or acquired under statutes 25 repealed or under any rule, regulation or order adopted under the statutes. Repealers contained 3

House Local Bill No. 18-63, D2 in this Act shall not affect any proceeding instituted under or pursuant to prior law. The enactment of the Act shall not have the effect of terminating, or in any way modifying, any liability, civil or criminal, which shall already be in existence on the date this Act becomes effective. Section 9. Effective Date. This Act shall take effect upon its approval by the Governor or its becoming law without such approval. CERTIFIED BY: MON A. TEBUTEB Chairman Saipan & Northern Islands Legislative Delegation on this 31 dayof,2014. -r- 7:' \d. '" \==- ' ", I I i \ "- ELOY S. INOS Governor ---- ----- Commonwealth of the Northern Mariana Islands ' 4