MPLT: Only trustees can set own compensation

The Marianas Public Lands Trust has warned the Legislature of possible breach of the trust’s constitutional authority if it passes a bill that proposes to fix the per diem of all members of government boards, councils, and commissions in the CNMI at $100 each for a whole day meeting attendance and $50 for a half day meeting.

“Overall, we agree with the intention of this bill, but also are concerned that the strict limitations imposed by its terms may be an infringement on MPLT’s constitutional administration of the trust,” said MPLT acting chair Herman R. Guerrero in an Oct. 14, 2005 letter to a House panel.

MPLT currently pays each trustee $150 for a meeting that lasts up to four hours.

An additional $150 per diem is paid if the board meeting goes beyond four hours.

Guerrero said the issue on compensation has been thoroughly studied by the board, resulting in the development of a criteria.

The NMI Constitution, he said, established the MPLT with five trustees “for the reasonable, prudent, and careful investment of the trust funds.”

“In this regard, the trustees are held to strict standards of fiduciary care in carrying out its responsibilities. The NMI Constitution, as the trust instrument, does not provide for establishing trustee compensation and expenses, leaving this matter to the discretion of the trustee,” said Guerrero.

He said the following factors are considered: the amount and character of the trust property, the extent of the risk and responsibility of the trustee, the character of the services rendered by the trustee, the skill and success of the trustee in administering the trust, and statutory rates of compensation for executors and administrators.

House Bill, 14-375, authored by Rep. Arnold I. Palacios, aims to solve the “excessive compensation rates” of board members and commissioners, which it said was cited by the Office of Public Auditor in a recent report.

It said that some boards were found to be giving their members a high as $300 each per meeting in the case of Marianas Public Lands Authority.

Most boards and commissions pay their members an average of $30 per meeting.

Palacios’ proposal also said that compensation for meetings shall be limited to those meetings open and public as required by the Open Government Act.

It says that a member shall not be compensated for attendance at a meeting “unless the minutes of that meeting have been transcribed and adopted.”

It also prohibits use of official representation allowance between members and employees or other government agencies.

Further, it authorizes no member to use a government credit card “for any reason whatsoever.”

The proposal said that “extraordinary” expenses of members shall be limited to those meetings open and public ..and for which notice has been published.

The proposal aims to repeal 1 CMC section 2801 relating to MPLA to remove the $300 a day when attending off-island board meetings “within the NMI senatorial district” and $150 per day “in his or her own senatorial district.”

It says that meetings outside the Commonwealth, informal or non-committee meetings, teleconferences, and video conferences “do not constitute attendance for purposes of board meetings.”

It says that all meetings shall be scheduled and publicly announced ahead of time.