Yap State 11th Legislature: Finance Committee Public Hearing on Bill No. 11-209

Added: 2026-05-27

[00:00:01]Uh Our public hearing this morning is going to be on Bill number 11-209.

[00:00:08]Uh a bill that uh amend uh is proposed to amend Title 13 of the Yap State Code by amending Section 103.

[00:00:22]Uh I mean 103 uh three.

[00:00:27]Which is a provision on submission of annual government budget and for other purposes.

[00:00:33]And if this amendment passes, uh will uh amend public law uh 6-47 which amended public law 4-3.

[00:00:49]And that's the budget act.

[00:00:53]Uh this this submission is I mean this uh proposed amendment is to clarify submission date for the annual budget.

[00:01:05]Cuz right now uh the budget act stated that the budget the annual proposed budget should be submitted to the legislature on the first Monday of March.

[00:01:21]And then sometimes that Monday first Monday of March is either a holiday or uh uh sometimes we have uh uh natural uh disaster that uh so the budget cannot be submitted at at that time.

[00:01:43]So we're trying to clarify that in the in this amendment.

[00:01:48]And the proposed uh this uh submission deadline is if we can if the first Monday of March is a holiday or there's a natural disaster, then the second [snorts] Monday of March becomes the deadline for submitting the budget.

[00:02:11]And the proposed um uh penalties for uh for in dealing the submission uh of the budget.

[00:02:26]If it fall those two dates comes and there was no budget.

[00:02:32]Uh I believe that in all laws, uh there should be consequences.

[00:02:42]Uh just like uh the speaker always say if you run a stop sign, you have to pay a fine cuz you are breaking a law.

[00:02:53]And these are laws that are uh in place and if you violate those law, there are consequences that And it's good that the AG is here.

[00:03:08]And you director of budget and director of OES, so we can um discuss this.

[00:03:17]And uh see which is the best uh approach to implementing these laws.

[00:03:26]Oh, and I have with me the vice speaker who's a member of my committee.

[00:03:33]And we have our legal counsel and budget officer.

[00:03:38]Uh and before I turn the floor to uh uh one of you uh witnesses, I'd like to ask our legal counsel to uh clarify the uh some um uh mistakes and omission in in this bill uh So, I don't have it on mine and I I don't think you have it on yours.

[00:04:12]Well, but somehow when they were uh working on the bill, uh some uh lines were were not included. So, please, Chelsea.

[00:04:24]This proposed uh yeah.

[00:04:29]Uh thank you, Chairman. Uh the missing line uh should come before the uh first line on the second page.

[00:04:38]It would uh read fiscal year and then underline comma, including any reports required under.

[00:04:52]Uh that line was inadvertently uh missing from the introduced version of the bill.

[00:05:02]Uh Chairman, while I still have the floor um just a quick uh couple of comments. This bill also includes with that uh line it includes that the submission would include uh the uh any annual reports or reports from previous uh uh that came about from the uh um amended compact uh funding agreement.

[00:05:33]It would include the budget would include plans that are required um for the compact funds and also it should also include official list of infrastructure and maintenance plans or projects to be funded from Yap State share of compact compact funding.

[00:05:56]I think those are the additional changes proposed in the bill.

[00:06:01]Thank you.

[00:06:02]Uh thank you uh Elsie because yeah, and those were not included in the uh initial budget act.

[00:06:18]So, it's only an understanding that it they be included.

[00:06:25]Cuz uh over section that says anything uh uh that uh has to be funded by Yap State share of the compact has to be uh approved by the legislature.

[00:06:44]So, uh that's why uh we have to include this. So, when the budget is submitted, we should have a list of the projects that uh ITB and IMF.

[00:06:58]Uh we know there is an ITB uh plan and IMF with implementation plan. Uh we don't have those uh uh and maybe the administration can uh list them, get them from the uh uh the plans that the ITB implementation and IMF uh uh and submit or if there is a revision to those plans but the list has to be part of the budget submission.

[00:07:42]So, when the legislature act on that budget, uh they will also approve those list uh before submission to the national government. Otherwise, uh somebody will decide what I am missing what ITP will be implemented for the testing.

[00:08:04]Uh thank you and uh I uh give the floor to uh any of you three who wants to start first of the Do you have any comments on the uh proposed amendment?

[00:08:28]Good morning, chairman, uh vice, and staff.

[00:08:32]Uh yeah, thank you for the opportunity to review this. I think this is uh a needed uh discussion, especially with the date for the submission.

[00:08:45]I don't uh really have uh any specific issues with any of the recommended uh changes.

[00:08:57]I think uh with regards to the infrastructure, there might need to be a somewhat of a bigger discussion on just the uh process that's currently in place and the changes with the centralization of the the PMO and the infrastructure funds because in practice it hasn't really been working out I guess how we're hope uh these processes would go, and as a result, we're not getting a lot of movement in proposed projects. So, I I agree with uh the language to be included here, but I think there needs to be further discussions on streamlining the process to work for us here.

[00:09:49]Uh the state uh and just on the last change with regards to the consequences of uh not complying with the change here. I I don't really have an issue with it. My only concern is that the intent of this is applied consistently across the board to whatever it needs to be.

[00:10:17]Yeah, you know, that's my only thing. So long as that uh happens for I don't really have any particular issue.

[00:10:24]Come on.

[00:10:27]Uh thank you, Director of PBB.

[00:10:31]Uh I would also want to add uh as the uh 4AG uh to also please look at uh the last page, page three of three, line eight to 16.

[00:10:51]Uh uh that those are proposed uh consequences that will uh that you will uh uh have governor has to enforce if uh this law pass.

[00:11:08]Uh I'm asking if you can please look at it to make sure that it does not conflict with other laws of the state.

[00:11:17]First, there are the uh PSS laws.

[00:11:23]Uh and we just we are putting it in here for discussion and uh hopefully that uh it can it will not uh uh, violate or contradict other uh, laws that are already in place.

[00:11:49]Uh So, uh, thank you again Director O'Brien.

[00:11:56]Uh, any other comments on any of the uh proposals uh uh amendment and addition to the law.

[00:12:13]Yeah, I just I just I just want to comment that the your your your I agree with you that uh this uh this section uh uh, on page three uh the beginning at uh eight line eight is uh that area might be misconstrued.

[00:12:37]And uh it will definitely conflict with the PSS.

[00:12:42]And since the PSS is uh uh title eight of our up state code is already in place uh someone might use this law to bypass the protections of the PSS. So, that's what I'm kind of worried about.

[00:13:02]Uh, thank you Director. Oh, yes, and that's why I asked AG uh to look into it because we don't want to contradict any any of our laws.

[00:13:13]So, uh we want to make this is uh uh it it's uh implementable without any contradiction uh whatsoever to any laws that we have?

[00:13:29]Thank you.

[00:13:33]Well, AG.

[00:13:37]Thank you, Chairman. And good morning to you all. And good morning uh uh uh Vice Chair and and stuff.

[00:13:46]Chairman, just in response to the um to the um views raised on page three in relation to the I believe we'd call it penalties or enforcement measures for for this particular bill.

[00:14:04]Um I just have a clarification for LC. Uh just to give us some idea on how to move forward on this.

[00:14:14]Um would It It says in line nine that the governor to issue procedures um for the sanction and there forth.

[00:14:25]Um Just a quick query to LC. Would procedures also uh indicate the governor promulgating regulations for this or is that is that a different avenue?

[00:14:38]Uh with regards to procedures or is it just something internal?

[00:14:42]Thank you, LC.

[00:14:46]Chairman, um Actually, um this provision is actually lifted from chapter 14 of our regulations for PSS.

[00:14:59]Um >> [clears throat] >> and probably it can be amended. The governor has the right to amend those regulations.

[00:15:22]Well, AG.

[00:15:25]L C thank you for the clarification. Um we will we will look at this and um ensure that it does not uh conflict. If anything, if they they are to be procedures um established or regulations established, um they would have to be language to reflect um the the supervisors or or the heads to um uh refer to the um the particular staff staff or individuals um contract uh in in trying to enforce this provision so that there's no conflict on whether they're subject to PSS or not.

[00:16:06]Um Chairman, uh while I have the floor, also um I'd like to also clarify the um seek clarification on um the um amendments made on the first speech with regards to the um the day um the the flexibility given to the day to submit uh the day to submit the uh the budget.

[00:16:34]Um It says here, "If the day is a holiday um or there is a um declaration of emergency it could uh with or if there's a declaration of emergency um in effect, and I understand the intent behind the declaration of emergency would be to consider um natural disasters or any act of God.

[00:17:06]Uh but from a a legal point of view, this con- this could be considered as an official endorsement uh for a declaration of emergency uh by the governor. Uh I'm hoping perhaps if there could be some flexibility in the language to just to also elaborate something further more towards the an event or an act of God.

[00:17:34]Like a classic example is the tropical storm that we had just gone past. You know, there was a warning and there was a admin leave given.

[00:17:43]It wasn't sort of a government giving an official declaration of emergency. So that could be sort of misinterpreted. If you could perhaps expound further on the language on this to avoid confusion. Thank you, chairman.

[00:18:00]Thank you, AG.

[00:18:04]LC, can you please take note of that?

[00:18:06]Oh.

[00:18:07]Oh, we can further or call it to make [clears throat] it more clear.

[00:18:16]Anything else? Uh.

[00:18:20]No.

[00:18:23]And >> [clears throat] >> for the other pages, anything that needs to be discussed? Uh.

[00:18:30]Or maybe revise a little bit.

[00:18:33]We want this to be to pass and it uh to the best uh that we can to ensure that uh the workflow is smooth.

[00:18:51]And it's uh address everything that we want to address in the amended law.

[00:19:05]Yeah, quite a taking.

[00:19:09]Chairman, thank you. And um this would probably fit add on to the list of things to do for LC.

[00:19:19]Um perhaps if we could re-look at the um line 13 to line 16 of page three.

[00:19:29]Um where it mentions uh "and any delay during the process, the director of planning and budget for immediate handling."

[00:19:37]Uh such delays may include uh but not limited to decreasing salary, suspension of work, budgetary decrease.

[00:19:44]Um I would suggest perha- um perhaps the to see if there's an actual need to uh point out um what these penalties could include uh because um from line nine you're the law is already giving discretion to the governor to um to make those um those directives. And if the governor does give any procedures uh we wouldn't want it to sort of um conflict with um uh what's stipulated in in in line uh line 15. And I understand line 15 uh would be merely a guide.

[00:20:31]Um but again, as Director West had mentioned, you know, we do we don't want to um muddy the waters with anything thing in relation to the PSS.

[00:20:42]Thank you, uh Chairman.

[00:20:43]That's all.

[00:20:47]You want to respond to that, Mr. Um just to clarify, I think uh the um there's a language issue. The delays should not be delays. That word should be sanctions.

[00:21:04]Uh Uh while while I still have the floor and if I can offer a personal comment, essentially subsection D as proposed is already things that can be done by the immediate supervisors.

[00:21:20]Um this was placed in here as a guide to the discussion.

[00:21:25]But I think uh uh more management initiatives be taken across the board in all the direct departments and agencies because uh from our experience here, we often find that the delays are not actually with the compilation of the budget. It's with the agencies and departments themselves.

[00:21:48]So, perhaps that can also be looked at.

[00:21:52]Thank you.

[00:21:56]Thank you, LC. All right, director.

[00:21:59]I Thank you, chairman. [clears throat] I just wanted to you know kind of pick up from LC's point. That's really my concern with this thing.

[00:22:08]>> [clears throat] >> If this section here section D, I I guess, is to be explicitly stated here in the the law, I feel like this should be included in whatever other requirements there are as opposed to having it just a targeted uh just for the budget itself, the budget submission date. I mean, if this must be explicitly stated in here, then I think it's only fair that it you know whatever or wherever there are requirements, you have the same explicit language so it applies consistently across the board.

[00:22:43]Yeah, come well.

[00:22:52]Uh you have you have any comment?

[00:22:54]Uh Thank you. Uh Like I said earlier, AG, if Uh, we can also provide your comments, your written comment on especially that section over there.

[00:23:10]Uh, so we can look at it from our side and see how we can revise the what is proposed in this bill.

[00:23:22]Uh, anything else? Uh, uh, first we go your building.

[00:23:34]You know, is that thank you, chair. I um I fully agree with the comment that have been put forth already.

[00:23:42]Uh, I think this is a good piece of legislation.

[00:23:47]Uh, the only concern that I have has you know, like uh, this has to uh, be the it's like enforcement of the law.

[00:23:57]I'm not blaming anybody here in any particular uh, department. Because sometimes uh, we have to align things in in uh, better streamlining uh, um, before we start enforcing uh, without the fear of uh, um, maybe doing something that is that may turn out to be hindering the operation of the government. So it's just a matter of aligning the penalties of all prescribed laws and see what we can do in defining uh, the enforcement of the law. I'm just saying like for example, I think that comes to my mind right now.

[00:24:37]It's like the enforcing the speed limit.

[00:24:40]If we enforce the speed limit and people are so used to leaving at the same time, leaving their house at the same time.

[00:24:47]And it's going to people are going to be arriving late. A lot of people are going to be arriving late and it's going to it's going to affect the whole government in the long run.

[00:24:56]You know, by 8:00 people haven't arrived work. It's just some that we have gotten used to. So, it's not really the fault of the And if you just get on the street right now and start prosecuting the people, everybody's going You're going to have to build up another prison. So, so we just try to coordinate these things so that nothing turns out to be We try to to improve on the performance of the people and the government and the effectiveness of the operation of the government. But at the same time, it It's It's It's a lot easier said than done. But that's something that I like about the law is it I think it it leaves a lot of discretion to the enforcement division to decide how to how to how to take care of this because how to depends on the characters involved. So, I like that part.

[00:25:49]Thank you.

[00:25:53]Thank you, Vice Speaker.

[00:25:55]Uh And if you have no more of comments uh Oh.

[00:26:01]I guess uh we have exhausted everything that we want to discuss on this.

[00:26:07]So, uh Go ahead, Elsie.

[00:26:12]Uh Chairman, if there are any comments, by when should we expect any comments for finalizing the bill?

[00:26:22]Uh Thank you, Elsie. Uh we would like to uh take this to the whole legislature in the our next session.

[00:26:34]If we can have any comments from you, uh AG and you two directors, uh by uh uh Monday next week. Uh Is that fair enough? Uh uh So, we we'll know cuz there are other pending uh needs that we have [snorts] to include in our session.

[00:27:03]And hopefully by next week we'll be we have we'll have everything together including this to be included in the in our session.

[00:27:14]So, we'll let's uh have meeting next week is a uh our deadline. Thank you.

[00:27:23]Uh If nothing else, then I'd like to close our public hearing this morning.

[00:27:30]Again, thank you very much.