A SENATE bill similar to House Bill 22-102 will remain on the calendar while a House committee reviews legislation to exempt public corporations and autonomous agencies from the 1% public auditor’s fee.
Speaker Edmund S. Villagomez introduced House Bill 22-102 during a session on Rota Wednesday and referred it to the House Ways and Means Committee.
Senate Bill 22-51 was introduced by Sen. Edith Deleon Guerrero.
On Thursday, the Senate said it would “yield” to the House bill.
“I do know that this is a very critical [piece of] legislation [and the] Speaker and I have…an understanding [to consider] either the House bill or the Senate bill,” Senate President Jude U. Hofschneider said.
“We need to further discuss this legislation simply because of the gravity [and] importance of what it entails and its intent, so I appreciate the members’ understanding on this matter, and we shall await the action on the House bill,” he added as he thanked Senator Deleon Guerrero for “yielding” to the House bill.
The Commonwealth Ports Authority supports the passage of H.B. 22-102 which the Office of Public Auditor opposes.
CPA board member Pete Reyes told the House on Wednesday that federal grant requirements prohibit the agency from paying more than the value of the services it receives, so if it paid the 1% OPA fee, it would violate grant requirements, as it would be considered “revenue diversion.”
In her written comment, Public Auditor Kina B. Peter said H.B. 22-102, “as written, rewards [the delinquent autonomous agencies’] disregard of the law, forgives a massive debt owed to the CNMI Government General Fund, and will impact the ability of OPA to function independently as required by law.”
She added, “H.B. 22-102 asserts that OPA’s 1% fee would violate federal entitlements for CPA. As to date, there has not been a determination that OPA’s 1% fee puts CPA or other agencies at a financial risk with their federal grantors. CPA has never voiced the need for an expedited timeline to resolve this issue with OPA as we met with their Comptroller back in March 2022. Additionally, CPA has recorded on its most recent audited financial statements and prior audited statements, OPA’s 1% fee without contingencies recognizing the legal requirements, but has continually chosen not to remit payments.”
Jude U. Hofschneider
