the senate sixteenth legislature c northern …sj 16-34 june 30, 2009 4. gov. msg. no. 16-495: may...

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THE SENATE SIXTEENTH LEGISLATURE COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Senate Journal FOURTH SPECIAL SESSION, 2009 SJ 16-34 First Day Tuesday June 30, 2009 The Senate of the Sixteenth Northern Marianas Commonwealth Legislature convened its First Day, Fourth Special Session, on June 30, 2009, at 10:40 a.m., in the Senate Chamber, Capitol Hill, Saipan, Commonwealth of the Northern Mariana Islands. The Honorable Pete P. Reyes, President of the Senate, presided. A moment of silence was observed. President Pete P. Reyes: Clerk, please call the roll. The Clerk called the roll. Seven (7) members were present. President Pete P. Reyes: With seven (7) members being present, we have a quorum to conduct today’s business. Please let the record show that Senator Paterno S. Hocog and Vice President Felix T. Mendiola are excused from today’s session. Floor Leader, recognized. READING AND APPROVAL OF THE JOURNAL NONE The Chair recognized the Floor Leader. Floor Leader Hofschneider: Thank you, Mr. President. I move to resolve into the Committee of the Whole to entertain the presentation of a Senate Resolution recognizing the late Senate President Adriano that was passed by the Guam Legislature. The motion was second. President Pete P. Reyes: The motion has been made and seconded. Is there any discussion on the motion? All in favor say, “aye”. Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”. Floor Leader you are in charge. [The Senate resolved into the Committee of the Whole at 10:43 a.m.] -1-

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Page 1: THE SENATE SIXTEENTH LEGISLATURE C NORTHERN …SJ 16-34 June 30, 2009 4. Gov. Msg. No. 16-495: May 20, 2009 - Certification for annual salary in excess of $50,000 for Dr. Melville

THE SENATE • SIXTEENTH LEGISLATURE • COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

Senate Journal FOURTH SPECIAL SESSION, 2009

SJ 16-34

First Day Tuesday June 30, 2009

The Senate of the Sixteenth Northern Marianas Commonwealth Legislature convened its

First Day, Fourth Special Session, on June 30, 2009, at 10:40 a.m., in the Senate Chamber, Capitol Hill, Saipan, Commonwealth of the Northern Mariana Islands. The Honorable Pete P. Reyes, President of the Senate, presided. A moment of silence was observed. President Pete P. Reyes: Clerk, please call the roll.

The Clerk called the roll. Seven (7) members were present. President Pete P. Reyes: With seven (7) members being present, we have a quorum to conduct today’s business. Please let the record show that Senator Paterno S. Hocog and Vice President Felix T. Mendiola are excused from today’s session. Floor Leader, recognized.

READING AND APPROVAL OF THE JOURNAL

NONE The Chair recognized the Floor Leader.

Floor Leader Hofschneider: Thank you, Mr. President. I move to resolve into the Committee of the Whole to entertain the presentation of a Senate Resolution recognizing the late Senate President Adriano that was passed by the Guam Legislature. The motion was second. President Pete P. Reyes: The motion has been made and seconded. Is there any discussion on the motion? All in favor say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”. Floor Leader you are in charge.

[The Senate resolved into the Committee of the Whole at 10:43 a.m.]

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Mr. Pocaigue: Si Yu’us Ma’ase ni un kombida ham magi para bai in presenta esti na Resolution para si defunto Joaquin Adriano ni todu bida-ńa para i Northern Marianas…mas Tinian. Fuera di Senadot, ha sietbe ha esti i taotao-ta ni mu policeman yan Council member gi Tinian yan Aguigan ya enao na bula taotao Tinian mas ma agradesi todo i bidańa para i taotao siha ya na maolek mona para u mas maolek mona i linala i taotao siha. Pues ginen i mina Trenta na Lehislatura Guahan yan i manaotao Guahan, in nahi hao esti na Resolution, i tinayuyut yan i mina’ase para todo bidańa para i taotao siha. President Pete P. Reyes: Thank you and please Mr. Pocaigue, when you return to Guam, let the members of the Legislature know that the CNMI appreciates the excellent gesture that were given by the members of the Senate in Guam. I know that the family also share the sentiments of the Senate members here in the CNMI, and certainly appreciate that. Mr. Pocaigue: I apologize, Speaker Won Pat and maybe other members are not able to attend, but they are currently in session as we speak as well. So I just try to come here for the day and head back later on this evening. Mrs. Maryanne: Bai hu faisen hamyo, thank you yan dankulo na Si Yu’us Ma’ase pot esti na Resolution nai in nahi i asaguahu yan i famaguon mami. Si Yu’us Ma’ase ginen hami. Floor Leader Hofschneider: Mr. President, I move to resolve back to session. The motion to resolve back into session was seconded. President Pete P. Reyes: The motion has been made and seconded to return back to our session.

[The Senate rise back into plenary session at 10:50 a.m.] President Pete P. Reyes: We are back to our plenary session. We will move down to Messages from the Governor.

MESSAGES FROM THE GOVERNOR

1. Gov. Msg. No. 16-492: May 21, 2009 – Signed into law H.B. No. 16-243, entitled, “To amend PL 16-32 to reprogram $206,396.34 from MVA’s non-personnel appropriation to its personnel appropriation; and for other purposes,” becomes PUBLIC LAW NO. 16-41.

2. Gov. Msg. No. 16-493: May 19, 2009 – Certification for annual salary in excess of

$50,000 for Mr. Kent Ainslie, Physician Assistant for Nephrology at CHC.

3. Gov. Msg. No. 16-494: May 19, 2009 - Certification for annual salary in excess of $50,000 for Mr. Michael L. Ernest, Assistant AG, Office of the Attorney General.

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4. Gov. Msg. No. 16-495: May 20, 2009 - Certification for annual salary in excess of $50,000 for Dr. Melville Singer, M.D. Physician at CHC.

5. Gov. Msg. No. 16-496: May 29, 2009 – Certification for annual salary in excess of

$50,000 for Mr. Jonathan Corrigan, PA (Nephrology) at CHC.

6. Gov. Msg. No. 16-497: May 29, 2009 – H.L.B. No. 16-24, S1, entitled, “To appropriate $147,000.00 from the local license fees collected from pachinko slot machines and poker machines in the 1st Senatorial District,” becomes ROTA LOCAL LAW NO. 16-6.

7. Gov. Msg. No. 16-498: May 31, 2009 – Executive Order 2009-05: Declaration of a

State of Disaster Emergency – CUC Continuation #10.

8. Gov. Msg. No. 16-499: May 07, 2009 – Delegation of Authority to Lt. Governor Inos relating to government finances.

9. Gov. Msg. No. 16-500: May 13, 2009 – Delegation of Authority to AG Huesman

Acting Attorney General.

10. Gov. Msg. No. 16-501: May 22, 2009 – Delegation of Authority as Acting Secretary of Public Health to Mr. Pedro T. Untalan.

11. Gov. Msg. No. 16-502: May 27, 2009 – Enclosed copy of Ms. Margarita T. Prater

drug test results, appointed to serve as a member of CPA Board of Directors.

12. Gov. Msg. No. 16-503: May 27, 2009 - Enclosed copy of Mr. Phillip Mendiola-Long drug test results, appointed to serve as a member of MPLT Board of Turstees.

13. Gov. Msg. No. 16-504: May 28, 2009 – Certification for annual salary in excess for

Ms. Luise Q. Noisom, Nurse Practitioner at DPH.

14. Gov. Msg. No. 16-505: May 29, 2009 – SLB 16-05, D1, entitled, “To name a portion of Route 100 highway in honor of the Late Carlos Songsong Calvo,” becomes ROTA LOCAL LAW 16-7.

15. Gov. Msg. No. 16-506: June 08, 2009 – HLB 16-30, S1, D3, entitled, “To

appropriate the unobligated funds from Section 1(G) of Saipan Local Law 16-5; to appropriate the lapsed/unobligated funds from Saipan and Northern Islands Legislative Delegation (SNILD) Resolution 15-2; to appropriate the lapsed/unobligated funds from Section 2 of Saipan Local Law 15-10; to appropriate the lapsed/unobligated funds from Section 3(1) of Saipan Local Law 16-1; to re-appropriate from Saipan Local Law 15-12, Section 2(d); to appropriate from the Third Senatorial District Developer’s Infrastructure Tax Fund; and for other purposes,” becomes SAIPAN LOCAL LAW 16-9.

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16. Gov. Msg. No. 16-507: June 3, 2009 – Appointment of Mr. Pedro R. Deleon Guerrero to serve as a member of Marianas Public Land Trust to represent Saipan.

17. Gov. Msg. No. 16-508: June 15, 2009 – Enclosed copy of Mr. Pedro R. Deleon

Guerrero drug test receipt, appointed to serve as a member of MPLT Board.

18. Gov. Msg. No. 16-509: June 15, 2009 – Certification for annual salary in excess for Dr. Michael Hart, Anesthesiologist at DPH.

19. Gov. Msg. No. 16-510: June 15, 2009 – Certification for annual salary in excess for

Dr. Michael Joseph Deary, OB/GYN at DPH.

20. Gov. Msg. No. 16-511: June 15, 2009 – Certification for annual salary in excess for Dr. Edward Cornette, M.D., Physician-ER at DPH.

21. Gov. Msg. No. 16-512: June 15, 2009 – Certification for annual salary in excess for

Dr. Will Gutowski, Psychiatrist at DPH.

22. Gov. Msg. No. 16-513: June 8, 2009 – Delegation of Authority as Acting Secretary of Commerce to Mr. David R. Maratita from June 12, 2009 through June 17, 2009 and Mr. Sixto K. Igisomar as Acting Secretary of Commerce from June 18, 2009 through June 30, 2009.

23. Gov. Msg. No. 16-514: June 22, 2009 – Re-appointment of Mr. Edwin M.

Hofschneider to serve as a member of the Commonwealth Development Authority to represent Tinian.

24. Gov. Msg. No. 16-515: June 24, 2009 – Certification for annual salary in excess for

Meaghan Hasselshearer, Assistant Attorney General, at the Office of the Attorney General.

25. Gov. Msg. No. 16-516: June 24, 2009 – Re-appointment of Mr. Benigno M. Sablan

to serve as a member of the Commonwealth Ports Authority to represent Saipan.

26. Gov. Msg. No. 16-517: June 24, 2009 – Nomination of Ms. Dolores M. San Nicolas to fill the position of Commissioner of the Department of Corrections.

27. Gov. Msg. No. 16-518: June 24, 2009 – Enclosed copy of Ms. Dolores M. San Nicolas

resume, statement of financial interest and drug test receipt. President Pete P. Reyes: Is there any discussion under Messages from the Governor? Senator Pangelinan, recognized. Senator Maria Pangelinan: Under Governor’s Message No. 16-498, Executive Order 2009-05 that is the declaration of the State of Disaster Emergency, CUC continuation number 10. I believe, Mr. President that the Emergency Power granted the Governor under the Constitution should be used

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only through emergencies that have already occurred, and the Governor should not continue to exercise these extraordinary powers in order to address CUC problems that no matter how serious it may appear, should be handled through normal governmental processes. I think that it is time now to disapprove this Executive Order. There is a stipulated order by the Court that really sets the standards and the procedures of how CUC should be addressed. If it is an emergency funding that is needed, they can come to the Legislature later and be addressed, but if you read the Governor’s Executive Order, it is contradicting the CUC executive position, and the Governor is actually saying that Aggreko is going to stay. When you really read that Executive Order, we should be addressing that section by section and it is all management issue at this point, and it is moving at the right path, and it does not need this CUC continuation. If there is a set back on some of the policies that is going to hamper the continuation of the changes in CUC, I think it should be brought to the attention as a separate issue, and we address that issue separately. That is my position on this Executive Order. Thank you. President Pete P. Reyes: Any other comment? Senator Manglona recognized. Senator Paul Manglona: Mr. President, I would just like to ask if we can just go into a short Committee of the Whole, I would like to ask our legal counsel where does the public law come into play here because we have a public law that actually created a CUC Board that reinstated CUC Board. President Pete P. Reyes: I have no problem with that, but Senator, may I recommend that we continue on with the session and just make a motion for the suspension of Senate Rules, and let us get this on record? That is allowable, right, Floor Leader? Just to suspend pertinent rules in our Senate Rules and just go with the session? Is that okay with the members? Senator Paul Manglona: So moved for the suspension of Senate Rules so that we can… President Pete P. Reyes: Is there any second? The suspension motion was seconded. President Pete P. Reyes: The motion has been made and seconded. All in favor for the placement say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The motion is carried. You are now allowed to question the legal counsel. Senator Paul Manglona: Thank you, Mr. President. I support the intention of Senator Pangelinan, but before she makes that motion, I want to get an understanding of where that new public law is,

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and if this Executive Order – simply so that they can go around that new public law or it is necessity, and is it legal to continue doing this? I remembered in prior sessions, I did raised the concerns that we pass a public law creating a Board of Director and it is not being implemented, and it has been months since that law became effective. Can we hear from the legal counsel? Senator Maria Pangelinan: The Governor addressed that in the Executive Order, and he is saying that he is not able to find the volunteers to establish the board, but that is exactly my point. If it is the Executive Order is because he does not want to have a board, then we can do that separately and eliminate that – repeal the law to not have a board and address that issue separately. Unfortunately, I just noticed that the date of the Executive Order was dated May 31st, so I guess it automatically is effective because it passed the 30 days already. Is it thirty (30) days or ninety (90) days? Senator Paul Manglona: But even with that, the question remains – there is this public law and can it be circumvented because people do not want to become a board member for this body or is that justified enough? Senate Legal Counsel Michael Ernest: Full disclosure, as of tomorrow, I work for the Governor, but that being said, I work for you now. I do not have the law. In front of me, the Governor’s Message does cite the law. He does seem to site that he has the responsibility to appoint board members. He tries to justify his lack of action by saying that there is no one qualified who is willing. I do not think that the law that requires there to be a board provided any penalty to the Governor for failing to comply. You could take the Governor to court and look for a writ forcing him to nominate somebody. Alternatively, you could pass legislation which takes away funds that he could be spending for everyday that he does not appoint a board member. You can reduce his appropriations by ex-dollars. That certainly would be the purview of the legislature, but without having the law in front of me, I cannot say whether there is any penalty to the Governor for failing to do a board. Senator Paul Manglona: I am concerned because we are setting a bad precedence here. We have other autonomous agencies, and any future Governor can then use this excuse that they can’t seem to fill up the board members and therefore do an Executive Order. We are setting bad precendent here, and this Legislature then is sort of saying, yes we are okay and never mind the laws that were passed. Senate Legal Counsel Michael Ernest: I think that the bad precedence was set with the PUC Board which went forever without having any members. Again, there needs to be penalties in the enabling acts which penalize the Governor for not appointing board members. And until there are such clauses in the acts, the Governor I believe is within his authority to act in the absences of a board. Senator Paul Manglona: So is that your opinion? President Pete P. Reyes: Just to interrupt, let the members and the legal counsel understand that we are still in session, but I am going to allow maximum latitude to go ahead and Q/A so that we do not get into the formalities of having to recognize individuals. Senate Legal Counsel Michael Ernest: I apologize. I thought we were out of session. I am very sorry for speaking out of turn.

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Senator Paul Manglona: So, Mr. President, I guess we can move along, and I would like to ask our legal counsel for a legal opinion as to what the public law now calls for, and whether the Governor in the future can continue to issue an Executive Order – is that legal, and what legal process can we undertake to make sure that the intent of the law is followed. If I am not mistaken, the intent of this Legislature in passing that legislation was to create the board, and months later, I think it is almost six months since that became effective, and we still do not have it. It seems like it is just a regular routine for this Legislature to receive Executive Orders pertaining to CUC, and we are far from getting to what we originally intended to happen at CUC. So I guess I would just like to make an official recommendation to our legal counsel to give us their legal opinion and working with the House legal counsel. Thank you. President Pete P. Reyes: Can we have a short recess until our legal counsel returns? I am sure that he went to see if he could get… Senator Maria Pangelinan: He is going to get the public law, but Mr. President, if you could just allow me to read what the Governor said in his letter with respect to the board. If you read on page 9 (c), it says, further CUC has function without a board of directors because it has had to while CUC’s enabling act now 16-17 has amended, authorizes a board, there is no CUC board yet because while the staff of the Governor’s Office have diligently tried to find board volunteers to meet the statutory qualifications, they have been unable to do so. Nonetheless, CUC must continue to function including, it must be able to resolve the CDA relationship to allow it to borrow money. So he is recognizing the law that mandates the establishment of the board of directors, but he is saying that he is not able to make the appointment because he cannot find the right people. I do not know what is the solution for this comment here, but this is the problem – the Governor is the Legislature and the Executive Branch, and it is bad enough now that the Retirement is not only trying to become the fourth branch of government, but it is now the only government that wants to exist. This body has to start asserting its power, otherwise, we shutdown. President Pete P. Reyes: Thank you. Shall we have a motion to place this on Calendar so we can move on, and we can act on it when it gets to the Calendar? Is there any objection from the members? There was no objection. Floor Leader Hofschneider: Mr. President, I move for the placement of Governor’s Message No. 16-498 on the Calendar for today’s session. The placement motion was seconded. President Pete P. Reyes: The motion has been made and seconded. All in favor for the placement say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

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The motion was carried by voice vote.

President Pete P. Reyes: The motion is carried. Please mark your Calendar. Let us place it on, any suggestion Floor Leader, on the Calendar? Floor Leader Hofschneider: Mr. President, may we have a short recess? President Pete P. Reyes: Short recess.

The Senate recessed at 10:55 a.m.

RECESS

The Senate reconvened at 11:00 a.m. President Pete P. Reyes: We are back to our session. I recognize the Floor Leader. Floor Leader Hofschneider: Mr. President, before we went on recess, I made an appropriate motion to place the Governor’s Message, and we are placing it on today’s Calendar. President Pete P. Reyes: The motion has been made and seconded. We voted on it to place it on the Calendar, and the problem is where in the Order of Business should we place it? May I ask Senator Manglona to help us out on this? You have the longest experience. Senator Paul Manglona: Normally, we just act on under the Messages of the Governor, and somebody has to make the appropriate motion for whatever action to consider. President Pete P. Reyes: So can we go ahead and leave it that, and we will come back to the Message of the Governor and then we act on that at the appropriate time. Is that okay with the members? So it is now calendared for action today. If there is no objection, so ruled. Floor Leader, recognized. Floor Leader Hofschneider: Mr. President, if I may request from the indulgence of the members to refer back to… President Pete P. Reyes: Can we move on to other issues first and then we go back to make that? We are going to do some research on it. Floor Leader Hofschneider: I was going to reference another Governor’s Message in referenced to EAGI Committee on the appointment of Mr. Pedro R. Deleon Guerrero. That is Governor’s Message No. 16-508. For everyone’s information, the Committee has come up with the Committee Report, and I hereby ask the members that I suspend pertinent rules and move to item k under Reports of Standing Committee and adopt it.

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President Pete P. Reyes: Without objection from the members. There was no objection. President Pete P. Reyes: So ruled. Floor Leader. Floor Leader Hofschneider: I move to suspend Pertinent Rules to go to item k to entertain the nomination of Mr. Pedro R. Deleon Guerrero to the Board of MPT representing the Third Senatorial District. The motion was seconded. President Pete P. Reyes: The motion has been made and seconded. Is there any discussion? Floor Leader Hofschneider: I just need to make the appropriate move to adopt the Committee Report.

REPORTS OF STANDING COMMITTEES

1. Standing Committee Report No. 16-52: June 30, 2009 – From the Executive Appointments and Government Investigation Committee reporting on S. C. R. No. 16-52, ”

The Chair recognized Floor Leader Hofschneider. Floor Leader Hofschneider: Mr. President, I move to adopt Standing Committee Report No. 16-52 and that is to approve and accept the nomination of Pedro R. Deleon Guerrero to the Board of MPLT. The motion was seconded. President Pete P. Reyes: The motion has been made and seconded. Is there any discussion? Several members voiced, “ready.” Senator Luis Crisostimo: Mr. President… President Pete P. Reyes: I recognize Senator Crisostimo. Senator Luis Crisostimo: We have a Committee Report, right? I apologize, I do not have one. Mr. President, I know that I am going to confirm, Mr. Pedro R. Deleon Guerrero, but I would like to ask the indulgence of the members if I can just ask him one question before we do so. Can we go into the Committee of the Whole? President Pete P. Reyes: Do you wish to ask him on record or do you wish to recess? Senator Luis Crisostimo: I guess we can go on recess, or it does not matter.

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President Pete P. Reyes: Okay. Floor Leader, to resolve into the Committee of the Whole. Floor Leader Hofschneider: Thank you, Mr. President. I move to resolve into the Committee of the Whole to entertain a short question for the nominee to the MPLT board. The motion was second. President Pete P. Reyes: The motion has been made and seconded. All in favor say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”. The motion is carried. We are now in the Committee of the Whole, and Floor Leader, you are in charge.

[The Senate resolved into the Committee of the Whole at 11:12 a.m.] Floor Leader Hofschneider: Thank you, Mr. President. I recognize Senator Luis Crisostimo. Senator Luis Crisostimo: Thank you, Mr. Chairman. Thank you former Congressman – Speaker of the House and a long time serving friend in the pro-people and pro-Northern Marianas descent, Mr. Deleon Guerrero. My very question that I wanted to ask, everyday we are asked what is really the function, the fund and the trust that you will be serving us once we confirm you today? How do you see like an Initiative that I passed here in the Sixteenth Legislature of trying to one day to distribute some of our yields or the interest from the Trust and to be passed down to the people. Can you elaborate on how would you feel on an Initiative like that because some of the board members in the past, when I first passed this in the Fourteenth and the Fifteenth, they were totally against it. I just want to hear it on your part on that first piece of Senate Legislative Initiative that I passed. It is in the House right now waiting for passage, and hopefully, one day the voters of the CNMI would decide whether to approve it or not that the people of the Northern Marianas descent would receive royalties of our Trust. Can you just give me one take on that? Mr. Pedro R. Deleon Guerrero: Mr. Presient and members of the Senate, thank you for allowing me to respond to the questions of the good Senator Crisostimo this morning. First, as I understand it, what is the responsibility of the board, it is clearly stated in the Constitution that the board shall make prudent investment of the funds, and that is in actuality what the Constitution mandate each member that is serving the Trust Fund. As regards to the Initiative, I do not have the bill before me, but I recall seeing one, and I understand, the profit or the interest earned from the American Memorial Park, the $2 Million dollars interest earned which has accumulated over the years, the Initative proposes to get that fund instead of appropriating, transferring that fund over to the general fund, which shall be appropriated by the Legislature. As I understand, the proposed Initiative amended the intent of the Constitution to have the interest to certain percentage. I think there was a percentage of about eighty percent. That would be distributed equally to the persons of Northern Marianas Desecent. Although the Constitution did not recognize the intent of the proposed Legislation, but I think that the proposed Initiative in a way proposing to do exactly what the delegates of the First Constitution should have done, and that is that all money that is generated from

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the fund should benefit land owners of properties that are being leased out, and land owners is very clearly stated that public lands belong to persons of Northern Marianas Descent as defined under the Constitution. Now, the language of the proposed Initiative, although it says to persons of Northern Marianas Descent, I believe that the language should make reference to the provisions of Article XII, because Article XII defined persons of Northern Marianas Descent. The way it is written, there is no such reference, and so therefore, it may create a…in terms of who actually is Northern Marianas Descent. As to regards to the proposed legislation, it is not defined so that may be challenge because there is no referenced to Article XII in referenced to who are persons of Northern Marianas Descent. The other one – my concern in that, if I understand it clearly is, why eighty percent and the operations of MPLT – where should MPLT get its operational expenses, is it from the eighty percent of the interest earned, or is it from the twenty percent? That is not clear on the Initiative – it has to be clear in terms of where MPLT has to get its operational fund. I think that the Legislature must look into all those areas. Now, as far as distributing the interest earned from the fund as expressed in the House Legislative Initiative. I do not know how much that would be, and I do not know whether it would be $5.00, $10.00, or $100.00. The other question that I have is that, it says Northern Marianas Descent – does that also…[End of Tape 1, Side A]…[Beginning of Tape 1, Side B]…the payment should be equally distributed amongst all persons of Northern Marianas Descent, or does that make referenced to household? I think that the Initiative must be very clear because it will raise some questions in referenced to distribution. The intent is good. One of the reasons why I accepted this appointment simply is because of the concerns that was raised in the Initiative. I strong believe that there was an oversight by the framers of the Constitution by identifying that public lands belong to persons of Northern Marianas Descent as specified under Article XII. However, when it comes to the interest earned that derive from lands that belongs to the people of Northern Marianas Descent, they took that interest and allowed the Legislature to appropriate that under the general fund. Now, I believe that at that time, the framers of the Constitution where not looking at how the changes in terms of who will be the people of the Commonwealth in the future. Now, we are seeing that the funds or the general funds where the interest earned is a part of the general fund. It is now being appropriated for the benefit of everyone. It does not matter whether you are a Northern Marianas Descent. It does not matter whether you are an American citizen, or it is does not matter whether you are a non-resident worker or somebody, as long as you are residing in the Commonwealth, you will become the beneficiary of that fund. So, I support the intent of House Legislative as you mentioned, but in terms of whether there will be a greater benefit by distributing that fund to the individual, I do not know, or whether we should look at it in other programs that will definitely brought about a greater benefit which will enhance the livelihood of our Northern Marianas Descent people. I think that I will encourage each and every member to look at that, but the intent and the purpose is correct. Senator Luis Crisostimo: Just one more question. On another piece of legislation that was passed here in the Senate was asking the members of the Board of Trustee for a loan – I was pushing for a loan that $20 Million would be set aside for indigenous business people to receive loans. In our Commonwealth of the Northern Mariana Islands, we see a lot of our locals, and these are Northern Marianas Descent that they own sports, water recreation, tour, or whatever sector that they are in, and some of these people, because they are Northern Marianas Descent, they are not as financially connected to the grid. Meaning to say that they are not connected financially with other businesses, and I just want to ask you, do you support piece of legislation like this urging the Trust to loan people of Northern Marianas Descent to start their businesses, or to start something in nature. As

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you see in the past, the Banks are very sensitive about the Article XII issue. They would not loan money because whoever is buying the land would be a fee simple, but a fifty-five year lease if he or she is not of a Northern Marianas Descent trying to obtain. But my question is, do you support loaning some of these Trust Fund money to people of Northern Marianas Descent business that need our help, and if you do, what would be your comfortable number? Would it be twenty percent of the Trust so that we can not just stimulate the economy, but proactively work with our locals and give them that opportunity to when they get financial support? Kao sińa ta ayuda i taotao-ta nai? Atan ha nai esti i taotao Guam nai, kumo matungo Chamorro’n Guam na guaha iyoniha trust ya sińa manma nahi royalty nai, Chamorro’n Guam sińa siha guaha iyoniha Trust nai. Eyu na Trust sińa lokkue ma loan taotaoniha. Man banidosu siempre i Chamorro’n taotao Guam. Man bandidosu mańeluta Guamanian. Lao hita pago Marianas manma nahi hit nui enao na pudet yan manma protehi hit. Pues ileleku nai na un dia, checho-ta teniki esti na para ta ayuda man taotaota Marianas enteramenti yan espesiatmente i Northern Marianas Descent. Hu komprendi ha na ilekmu na debi nai ta atan kao – for example eyu i royalty nai kao one year or…I think that two years ago anai gagaige si Governor Babauta, MPLA started registering people of Northern Marianas Descent and that is the right direction. The only way that our people and the CNMI would be together forever if there is a financially connected. In other words, for example like the Indian the tribunial family of this tribal reservation or Indian reservation, they get royalty from that. Eyu gue hu ke’ke faisen hao kao hunggan, kao un supopota nai eyu. Yanggen un supopota eyu, taya yes or no ha. Mr. Guerrero, gof impotante esti para guahu sa hutungo ha na metgot hao lokkue gi taotaota, lao ayuda lokkue hami ya tafan ayuda nai. Sa gi mapos, parafa ta puni, i Trust, ma kontra eyu siha iyoku legislation. They came out against it, and this is not for them. It is actually for the people who rightfully are deserving to one day get something. We do not know when they will get or will they ever get anything, or if they are getting from taking the $2 Million and putting it to the Trust Fund to the general fund, and then us as policymakers, are we doing the right thing by distributing that to everybody else? Yes or No. Those are questions that – it is like you nai, if it is your money, and I say, oh because all your neighbors are friends of your kids, so give the neighbors as well. Estague na mampos critical esti, Mr. Guerrero, ya yahu na bai hu hungok sinentemu kao un senti lokkue i sinentin man taotao-ta. Puet eyu siha i man namasi. Guaha ombre na taotao, maseha dididi lao sińa ma chule eyu na salape para iyoniha College fund para famaguon-niha, hospital bill, CUC bills…enague malagu yu bai hu faisen hao. Si Yu’us Ma’ase. Mr. Pedro R. Deleon Guerrero: Anyway, it is a very long question. Let me respond this way. One of the reasons why I accepted to serve if confirmed for the same reason that you are stating, and that is to see how these funds could be used to directly benefit persons of Northern Marianas Descent who qualifies. As regards to – that I cannot just say yes or not because you have to look into how it the language is written and all those things. I will do what is allowed under the Constitution and any statutes that makes reference to put in investment within the person of Northern Marianas Descent as an individual, business or corporation if that is allowed, but you can guarantee this as long as I am confirmed, I would look into every single request that comes into the board particularly requests that would benefit persons of Northern Marianas Descent as individuals, business or corporations. If there seems to be some problems then I would just not close the door. I will invite or visit you as Legislators or the individuals and sit down with some professionals and see how the proposal can work, and this I am committed to do. Floor Leader Hofschneider: Thank you, Mr. Guerrero. Senator Manglona recognized.

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Senator Paul Manglona:…[inaudible]…with the Retirement Fund nai, guaha lai seriosu na problema gi CNMI nai, guaha eyu siha para ufan retire ha esta pues ma withdraw iyoniha retirement fund, lao hutungo na kumo sińa eyu siha manafan ayao, maseha $20,000.00 pat $30,000.00 ya gigon ma retire eyu, they will be receiving for example $15,000.00 pat $20,000.00 gi sakkan. Lao instead of para uma resibi $20,000.00 kada year for the rest of their lives nai, para uma withdraw eyu i $70,000.00 pat $50,000.00 pot man kritikat nai. I think that is a wrong decision on the part of the empliyao ni eyu i para u withdraw sa ha nesisita cash sa man kritikat ya manmama dedesi. Sińa eyu manafan ayao kasi $30,000.00 ya secure ha gi iyoniha retirement or something like that. Kulan giya guahu, dankulo na isao eyu i esta para ufan retire ya para uma withdraw ya…Pues enao na klasen programa, atan fan enao. Mr. Pedro R. Deleon Guerrero: Or sińa ha lokkue nu i Retirement Fund nai an lugat di ufan issue bond, ufachochu sa I think that they fall under prudent investment. Senator Paul Manglona: Lao hutungo ha na guaha na biahi na timan ekungok… Mr. Pedro R. Deleon Guerrero: Pues bai hu garantea enao yanggen ma confirm yu ya humalom enao siha na proposal nai, bai hu atan ya yanggen ti sinedi ni lai teniki in seda ham guine magi ya tafan machochu parehu. Floor Leader Hofschneider: Before we close, yahu na bai hu faisen lokkue esti, i MPLT siha mas man proactive gi iyoniha to react ni para uma address esti i probleman ekonomian i para uma apase tatti eyu i housing program. I applaud the members of MPLT ni they took the bull by the horn and they helped the people that are endangered of losing their properties because of their agreement with MPLT. I would like to see if guaha way ni sińa un rescue eyu i gaige gi Retirement Fund, they have a housing program lokkue ya I think that their APR is 9% ya kulan masasapit lokkue i los prohimos nai. Pues atan fan enao na option ya in konsidera yanggen manma autorisa hamyo ni iyon miyu fiduciary duty gi enao na patti. Thank you. Mr. Pedro R. Deleon Guerrero: Yahu na bai hu sanggan na kulan makat i MPLT para u halom gi otro linderu sin ufan mafaisen nai. Pues yanggen pot siakasu na – you are presenting a good one, yanggen i Retirement Fund nu ha li’e na presisu na u fachochu yan i MPLT, bai hu welcome enao. Senator Paul Manglona: Mr. President, can we go back to our session. Mr. Pedro R. Deleon Guerrero: Thank you very much. President Pete P. Reyes: Is there any second? The motion was seconded. President Pete P. Reyes: The motion has been made and seconded.

[The Senate rise back into plenary session at 11:33 a.m.]

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President Pete P. Reyes: We are back to our session. Before the session, we were discussing Standing Committee Report No. 16-52, for the confirmation. Let me recognize the Floor Leader. Floor Leader Hofschneider: Thank you, Mr. President. I believe that we have already made the appropriated motion to adopt the Committee Report and it was seconded. So can we ask for roll call. President Pete P. Reyes: If there is no further discussion Clerk, call the roll. The Clerk called the roll on the motion to adopt Standing Committee Report 16-52 on Final Reading.

Senator Luis P. Crisostimo yes w/reservation Senator Paterno S. Hocog excused Senator Jude U. Hofschneider yes Senator Paul A. Manglona yes

Senator Felix T. Mendiola excused Senator Joseph M. Mendiola yes Senator Maria Frica T. Pangelinan yes Senator Henry H. San Nicolas yes Senate President Pete P. Reyes yes President Pete P. Reyes: With all seven (7) members voting “yes”, Standing Committee Report No. 16-52 is hereby adopted by the Senate, and by that adoption, Mr. Pedro R. Deleon Guerrero is hereby confirmed. Can I have a motion for a short recess? Floor Leader Hofschneider: I move for recess, Mr. President. President Pete P. Reyes: Short recess.

The Senate recessed at 11:35 a.m.

RECESS

The Senate reconvened at 12:25 p.m. President Pete P. Reyes: We are back to our plenary session. Floor Leader Hofschneider: We heard a lot about the Election Commission, and hereby request if we can go on recess until 2:30 p.m.? President Pete P. Reyes: Can I ask Senator Pangelinan if you can get the Board of Election Director over here when we convene at 2:00 p.m.? Senator Maria Pangelinan:…[inaudible microphone turned off]

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President Pete P. Reyes: We can resume the session by 2:00 p.m. Is that okay? Senator Maria Pangelinan: No. We are meeting at 2:00 p.m., so we will need to be in session at least by 3:30 p.m. or 4:00 p.m. President Pete P. Reyes: So can I ask all the members that are present to please be here by 2:00 p.m. so that we can all participate with the discussion, and while you members are having your lunch, can you take a look at the Order of Business again and see what we can do with – and I ask Senator Pangelinan already on item 7 under the Governor’s Message and also on House Communication in coordination with the Speaker, and this is on the CUC matter, and any other communication from the House so that we can act on it when we resume session. The motion has been made and seconded. Is there any discussion on the motion? Several members voiced, “ready.” President Pete P. Reyes: Ready. All in favor for the motion to recess up to 2:00 p.m. when the members convene for the Leadership meeting and that decision will take place immediately say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The motion is carried. We are now on recess.

The Senate recessed for lunch at 12:27 p.m.

RECESS

The Senate reconvened at 5:15 p.m. President Pete P. Reyes: We are back to our plenary session, and before we went on recess, we are under item (d) on the Order of Business.

COMMUNICATIONS FROM THE JUDICIARY

1. Jud. Comm. No. 16-23: May 29, 2009 – From the Director of Courts regarding request for hours of leave taken per the request from both Senator Pangelinan and Rep. Yumul .

There was no discussion.

COMMUNICATIONS FROM HEADS OF EXECUTIVE DEPARTMENTS

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1. Dept. Msg. No. 16-77: May 29, 2009 – Acting Secretary of Finance regarding expiration/termination of fuel supply contract vs. Mobil Oil Mariana Islands, Inc.

President Pete P. Reyes: Is there any discussion?

There was no discussion.

COMMUNICATIONS FROM THE HOUSE

1. Hse. Comm. No. 16-260: May 19, 2009 – Rejected the Senate amendments to H.B. No. 16-47 HD2, SD1, entitled, “To repeal and reenact Title 6, Division3, Chapter 1, Article 4 of the Commonwealth Code to prohibit smoking in all workplaces and public places; and for other purposes.”

2. Hse. Comm. No. 16-261: May 19, 2009 – Transmitting for Senate action H.B. No.

16-241, HS1, entitled, “To amend Public Law 16-32 to clarify which outside general fund sources the Department of Public Health qualified operational expenses are to be transferred to; and for other purposes.”

3. Hse. Comm. N. 16-262: May 29, 2009 – Representative Sablan on CUC follow-up

briefing on stipulated order for water/wastewater.

4. Hse. Comm. No. 16-263: June 05, 2009 – Reconsidered action and passed HB 16-179, HD1, SD1, entitled, “To amend and repeal certain sections of PL 15-46, the Probation Reform Act of 2006.”

5. Hse. Comm. No. 16-264: June 05, 2009 – Transmitted for Senate action HB 16-188,

HD1, entitled, “To mandate DPS to remove dead animals from public highways and roads and thereafter contact the Mayor’s Office for its proper disposal.”

6. Hse. Comm. No. 16-265: June 05, 2009 – Transmitted for Senate action HB 16-208,

entitled, “To amend 3 CMC § 4972(b)(2)(i) to waive the two year work experience for non-resident nursing graduates of the NMC who are seeking employment at private medical clinics.”

7. Hse. Comm. No. 16-266: June 05, 2009 – Transmitted for Senate action HB 16-220,

HS1, SD1, HD3, entitled, “To amend the Northern Mariana Islands Election Law to provide for runoff election procedures and to allow for the counting of absentee ballots on election day.”

8. Hse. Comm. No. 16-267: June 05, 2009 – Transmitted a certified copy of HR 16-90,

entitled, “To recognize and congratulate Mr. Joshua Alberto Manglona for his outstanding performances and accomplishments.”

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9. Hse. Comm. No. 16-268: June 03, 2009 – From the Office of Representative Stanley T. McGinnis Torres regarding request for employment settlement Information from the Northern Marianas College.

10. Hse. Comm. No. 16-269: June 03, 2009 – From the House Standing Committee on

Health, Education & Welfare regarding the amended Public Hearing.

11. Hse. Comm. No. 16-270: June 30, 2009 –Transmitted for Senate action House Concurrent Resolution No. 16-4, HD2.

President Pete P. Reyes: Is there any discussion from the members? On one of the Communication, I ask the Chair of Fiscal Affairs to come up with a Committee Report, so maybe by tomorrow, Senator Pangelinan? Senator Maria Pangelinan:…[Inaudible] Senator Luis Crisostimo: What is the number? President Pete P. Reyes: On House Communication No. 16-261. Senator Luis Crisostimo: Thank you. President Pete P. Reyes: Okay. Let us move down our Agenda.

COMMUNICATIONS FROM THE WASHINGTON REPRESENTATIVE

1. NMI Delegate Comm. No. 16-02: May 26, 2009 – Social Security coverage for the

Commonwealth Government employees.

The Chair recognized Senator Crisostimo.

Senator Luis Crisostimo: Mr. President, I understand that the Delegate is I guess trying to help us financially, but you know, I just want to be on record that as a people representing the Commonwealth of the Northern Mariana Islands, we know that the Retirement Fund needs money, and I hope that the Delegate would be able to ask Congress if we can gets some bail out to help our trouble financial institute. It is one of the Commonwealth’s Retirement Fund that we…to and if large corporations in the States are being given bailout’s to help, I know that the CNMI government in the absence of finding source of revenue in taxation, very little chance that we can help the Retirement. I was hoping that the NMI Retirement Fund money and funding that Uncle Sam – if the local government is in ability to find fundings of our needs, then you know that our great country and Uncle Sam can help us financially. I think that it is really the responsibility to see that the CNMI for the last five or ten years, we have an economic decline, and our gross national product is down to – we lose more than 50%. So this is the time that we ask our father country, because we are a small government, and the U.S. is the big government, and we should ask for bail outs and I urge our Congressman Greg Sablan to do just that – ask for bail outs, ask for $300 Million dollar bail out

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and write a check to the NMI Retirement Fund, because in the absence of that, I see a lot of uncertainty facing us and I just want to be on record. I think that if the U.S. feels that the CNMI is an important strategic location or territory for them, I think that they can help us in some of our financial bailouts. I want to be on record, and I will write him a letter for that. Thank you. President Pete P. Reyes: Is there any other discussion?

UNFINISHED BUSINESS

(NONE)

PRE-FILED BILLS AND RESOLUTIONS

1. Senate Bill No. 16-57: To amend Section 1331 and 1332 of the Commonwealth Code pertaining to divorce or dissolution of marriage; and for other purposes. (SEN. HENRY H. SAN NICOLAS – 06/18/09)

2. Senate Bill No. 16-58: To designate public land on the island of Tinian for

homesteading purposes. (SEN. JUDE U. HOFSCHNEIDER) 3. Senate Legislative Initiative No. 16-13: To amend Section 6 of Article X of the

Constitution of the Commonwealth of the Northern Mariana Islands to operate the government each year with a fiscally responsible budget or continous Resolution and without a budget deficits or debt deriving from budget deficits; and for other purposes.

4. Senate Commemorative Resolution No. 16-06: To commend and welcome Major General Keith L. Thurgood, Commanding General and CEO of the Army and Air Force Exchange Services to the Commonwealth of the Northern Mariana Islands. (SEN. LUIS P. CRISOSTIMO – 06/18/09)

5. Senate Resolution No. 16-37: To recognize and commend Mr. Michael Lunn

Ernest, Esq. of the Legislative Bureau for his dedication and service to the Senate, the Commonwealth Legislature and the people of the Commonwealth of the Northern Mariana Islands for over five years and to wish him well in his future endeavors. (SEN. JUDE U. HOFSCHNEIDER)

6. Senate Resolution No. 16-38: Expressing grave concern upon the introduction and the

intended passage of H.R. 934 which purports to convey certain submerged lands to the Commonwealth of the Northern Mariana Islands in order to give the CNMI the same benefits in its submerged lands as Guam, the Virgin Islands, and the American Samoa have in their submerged lands; and respectfully requesting an opportunity for an open 902 Covenant negotiation between the Commonwealth Government and the Federal government. (SEN. LUIS P. CRISOSTIMO 06/15/09)

President Pete P. Reyes: Is there any discussion?

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Senator Luis Crisostimo: Is that a motion? Floor Leader Hofschneider: I was just reading out the title of Senate Legislative Initiative No. 16-13. The Chair recognized the Floor Leader. Floor Leader Hofschneider: Without any objection from the members, may I offer a motion for placement of Senate Bill No. 16-57 and Senate Bill No. 16-58 on Final Reading. Not necessarily entertaining them today. President Pete P. Reyes: Is there any objection from the members. There was no objection. President Pete P. Reyes: So ordered.

REPORTS OF SPECIAL AND CONFERENCE COMMITTEES

(NONE)

RESOLUTION CALENDAR

The Chair recognized the Floor Leader. Floor Leader Hofschneider: Mr. President, I move for the adoption of Senate Commemorative Resolution No. 16-06. The motion was seconded. President Pete P. Reyes: The motion has been and seconded. Is there any discussion. All in favor for the motion say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The motion is carried. Senate Commemorative Resolution No. 16-06 is hereby adopted by the Senate. Floor Leader recognized. Floor Leader Hofschneider: Mr. President, I move for the adoption of Senate Resolution No. 16-37.

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The motion was seconded. President Pete P. Reyes: Floor Leader, if there is no objection from the members, let us have the entire members introduce that. Is there any discussion? Several members voiced, “ready.” President Pete P. Reyes: Ready. All in favor of the motion to adopt Senate Resolution No. 16-37 say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The motion is carried. Senate Resolution No. 16-37 is hereby adopted. Floor Leader Hofschneider: Mr. President, before I move to the other adoption, since today is the last for Mr. Ernest, we are going to ask you to come back and formally give a nice piece of embossed Resolution at a later date. President Pete P. Reyes: At this time, I would like to ask for a short recess.

The Senate recessed at 5:25 p.m.

RECESS

The Senate reconvened at 5:27 p.m. President Pete P. Reyes: We are back to our plenary session. I recognize the Floor Leader. Floor Leader Hofschneider: I move for the adoption of Senate Resolution No. 16-38. The motion was seconded. President Pete P. Reyes: The motion has been made and seconded. May I ask the indulgence of the members if we can just go into a short recess? There was no objection. President Pete P. Reyes: Short recess.

The Senate recessed at 5:30 p.m.

RECESS

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The Senate reconvened at 6:00 p.m.

President Pete P. Reyes: We are back to our plenary session. Floor Leader recognized. Floor Leader Hofschneider: Thank you, Mr. President. I would like to recall my earlier motion to adopt Senate Resolution No. 16-38, and entertain it tomorrow. The motion was seconded. President Pete P. Reyes: All in favor say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The motion is carried. We will suspend action on this until tomorrow. In the mean time, I will try to ask Delegate Sablan to come over and talk to the members before the session. The session is for 1:00 p.m. tomorrow, right? Floor Leader Hofschneider: Yes.

BILL CALENDAR:

FIRST READING

LEG. NO. TITLE

FINAL READING

LEG. NO. TITLE

H. B. No. 16-126 (Hse. Comm. No. 16-147)

To establish a population-based cancer registry in the Commonwealth of the Northern Mariana Islands; and for other purposes.

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H.B. No. 16-208 (Hse. Comm. No. 16-265)

To amend 3 CMC § 4972(b)(2)(i) to waive the two year work experience for non-resident nursing graduates of the Northern Marianas College who are seeking employment at private medical clinics; and for other purposes.

Senate Bill No. 16-57

To amend Section 1331 and 1332 of the Commonwealth Code pertaining to divorce or dissolution of marriage; and for other purposes.

Senate Bill No. 16-58

To designate public land on the island of Tinian for homesteading purposes.

There was no discussion.

ADJOURNMENT Floor Leader Hofschneider: Thank you, Mr. President. I move for recess subject to your call. Several members seconded the motion. President Pete P. Reyes: The motion has been made and seconded. All in favor of the motion to recess until tomorrow at 1:00 p.m. say, “aye”.

Several members voiced, “aye”. President Pete P. Reyes: All opposed say, “nay”.

The motion was carried by voice vote. President Pete P. Reyes: The Senate is on recess until tomorrow at 1:00 p.m.

The Senate recessed at 6:03 P.M. subject to the Call of the Chair. Respectfully submitted, /s/ Victoria T Guerrero Journal Clerk

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APPEARANCE OF SENATE LOCAL BILLS

LEG. NO. TITLE

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