House bill outlines exclusions to those that can use OAG services

The House of Representatives passed Friday a bill that would exclude public corporations and autonomous agencies from obtaining the services of the Office of the Attorney General and authorize then to hire private lawyers.

With 17 House members present voting “yes” and Rep. Joel Camacho (Ind-Saipan) abstaining, House Bill 23-46, House Substitute 1 now goes to the Senate for action.

Reps. Reps. Edwin K. Propst (D-Saipan) and Thomas John Dela Cruz Manglona (R-Saipan) were absent, but excused from the special session.

Rep. Vincent Aldan (Ind-Saipan) introduced H.B. 23-46 last May 10. The legislation was referred to the House Judiciary and Governmental Operations Committee chaired by Rep. Marissa Renee Flores (Ind-Saipan).

When the JGO Committee sought comments on the bill from the OAG, Attorney General Edward Manibusan found the proposed legislation to be unconstitutional.

The committee amended the legislation to address Manibusan’s concerns. The committee includes language that makes the legislation effective after the ratification of House Legislative Initiative 23-01 by the voters of the CNMI. Without such initiative, the legislation shall not be in effect.

Authored by Rep. Aldan, House Legislative Initiative 23-1 seeks to amend Article 3 Section 11 of the CNMI Constitution, specifically the provision stating that that AG provides legal advice to public corporations and autonomous agencies.

Aldan stated in the legislative Initiative that an amendment would require public corporations and autonomous agencies to hire private counsel, thereby avoiding conflict of interest and potential legal risks.

Aldan said the need for this amendment is underscored by recent experiences where public corporations faced legal action, but were at a disadvantage as they were represented by the OAG, which is also tasked with representing the interests of the Executive Branch.

The JGO Committee also sought comments from the Micronesian Legal Services and the CNMI Supreme and Superior Courts, but to date they did not provide comments.

According to the JGO Committee report on the bill, it finds that pursuant to the Commonwealth Code, the way it is currently written, can be quite problematic since the AG has the power and duty to act as counsel to all departments, agencies, and instrumentalities of the Commonwealth, including public corporations, except the Marianas Public Land Trust.

The committee finds that the concerns may arise from such language is the potential conflict of interest when the OAG has to provide counsel to public corporations and autonomous agencies.

The committee notes that when public corporations/autonomous agencies are in disputes with an executive department, agency, or instrumentality, both potential agencies will be represented by the OAG.

Due to such potential circumstances, the JGO Committee finds that it would be appropriate to relieve public corporations and autonomous agencies from seeking legal services from the OAG and allow for them to seek a private counsel to avoid potential conflict of interest situations.

The committee finds that cognizant of the governing body and autonomous power of the public corporations and autonomous agencies, it would be of great benefit to the CNMI if these agencies were to exercise such autonomy in seeking an independent private counsel.