GOVERNOR Arnold I. Palacios on Friday vetoed House Bill 23-72, which proposes to establish a CNMI Department of Labor revolving fund, citing the attorney general’s concern that it is “ambiguous.”
Authored by House Floor Leader Edwin K. Propst, H.B. 23-72 would allow Labor’s administrative hearing office to provide services to any CNMI government agency. Labor, in turn, could collect fees and deposit them into a revolving account.
The bill stated that since Labor’s administrative hearing office was established in 2003, “there has been an increase in requests from other CNMI agencies for assistance in administrative hearings.”
According to the bill, with the creation of a revolving fund, Labor would be able to collect fees from such services, along with fees collected through established regulations.
“The imposition of fees for hearing service is necessary to support the Department of Labor operations,” H.B. 23-72 stated, adding that other agencies using Labor’s administrative hearing office “would be more efficient and cost-effective than replicating it for themselves.”
Amendment needed
In his veto message, the governor said an amendment to the language of the bill is needed “to confirm that the administrative hearing office would apply the Administrative Procedures Act, (and not only with respect to those matters involving Labor).”
“For the foregoing reasons, I respectfully exercise my constitutional authority to veto this bill,” the governor said.
In his letter to Palacios regarding the bill, Attorney General Edward Manibusan said: “While the bill is constitutionally permissible, the establishment of a revolving fund may not be necessary, as there is an existing statute, I CMC § 7712 (Interagency Transfers), that provides a mechanism for agencies to receive reimbursements for the provision of materials, supplies, equipment or services to other agencies.”
Additionally, the AG said, “as currently written, the bill is ambiguous as to whether the hearing office is limited to the Department of Labor. According to 3 CMC §4511(a), the term ‘Administrative Hearing Office’ refers to ‘…the hearing office of the Department of Labor; and for purposes of 1 CMC §§ 9109 and 9110 as those provisions may apply to this chapter.’ (Emphasis added.) Clarification is needed to confirm that the administrative hearing office would apply the Administrative Procedures Act (and not just with regards to only those matters involving the Department of Labor).”
