House OKs bill that creates Labor revolving fund

The House of Representatives passed during a session last Friday a bill that seeks to establish a Department of Labor revolving fund and authorize the collection of fees that will aid its administrative hearing office serve other agencies.

House members adopted the House Ways and Means Committee’s report that recommends the passage of House Bill 23-72 in its current form.

All 17 House members present subsequently voted to pass the bill. The bill, authored by Rep. Edwin K. Propst (Ind-Saipan), is now with the Senate for action.

House Bill 23-72 authorizes Labor to establish a revolving fund account and, through an amendment to regulations, provide administrative hearing services for a fee for agencies that are authorized to resolve administrative cases.

Those fees and other fees collected by Labor may be used to fund Labor’s expenses for personnel and operations.

Before the voting, Rep. Marissa Renee Flores (Ind-Saipan) expressed hope that the Senate will act swiftly on the bill, given what’s going on again with the Civil Service Commission and its need for a hearing officer, further highlighting the need for one.

The Ways and Means Committee had stated in its report that the regulations of more than 25 agencies, offices, and public entities in the CNMI mandate the attendance of a hearing officer or an alternative due process hearing. Despite this, majority of agencies lack a hearing officer to preside over due process hearings and the committee said the majority of these agencies lack the financial means to establish an Administrative Hearing Office.

The committee said that Labor’s Administrative Hearing Office, which has been in operation for two decades, has the knowledge and expertise necessary to conduct administrative hearings for other agencies and it would be more economical and expedient for the Labor AHO to provide those services for other agencies rather than to replicating it.

By amending existing regulations, this bill would allow Labor to offer administrative hearing services to agencies authorized to resolve administrative cases in exchange for a fee, the committee said.

Under the bill, the Department of Finance will establish a revolving account that will be known as the Department of Labor Revolving Fund that may be used for the exclusive purpose of funding the personnel and operational needs of Labor.

Fees collected from an agency by Labor for providing hearing officer services, along with any other fees collected by Labor pursuant to Labor regulations, shall be deposited into the Revolving Fund.

Edwin K. Propst