CNMILRC | Home - Public Law 19-78 · 2018. 7. 13. · Saipan, MP 96950 Dear Governor Torres:...

COMMONWEAL TH OF THE NORTHERN MARIANA ISLANDS

Ralph DLG. Torres Governor

The Honorable Rafael S. Dernapan Speaker House of Representatives Twentieth Northern Marianas

Commonwealth Legislature Capitol Hill Saipan, MP 96950

The Honorable Arnold I. Palacios President The Senate Twentieth Northern Marianas

Commonwealth Legislature Capitol Hill Saipan, MP 96950

Dear Mr. Speaker and Mr. President:

Victor B. Hocog Lieutenant Governor

�1.4 JAN 2017

This is to infonn you that I have signed into law with reservation House Bill No. 19-186 HDl, entitled, "To repeal and reenact certain sections of the Commonwealth Healthcare Corporation Act; to establish a Board of Trustees which shall manage and control the operations, functions and activities of the Commonwealth Healthcare Corporation," which was passed by the House of Representatives and the Senate of the Nineteenth Northern Marianas Commonwealth Legislature.

While this bill becomes law, I respectfully advise the Legislature to pass legislation that ensures the governing board is in compliance with the Center for Medicare and Medicaid Services (CMS) regulations in order for CHCC to continue receiving federal funds from Medicare or Medicaid for patients.

CMS's regulations aim for a governing body that is primarily responsible for appointing members of the medical staff and for developing an institutional plan and budget. 42 CFR §§ 482.12(a), 482.12(d). The governing board established by this bill has powers beyond what is expected by CMS. If CMS found that the new structure of CHCC violated its regulations, CHCC runs the risk of losing eligibility to receive payment from Medicare or Medicaid. This would hamper the ability of our senior citizens on Medicare and the 36 percent of our population on Medicaid to pay for health care.

Caller Box 10007 Saipan, MP 96950 Telephone: (670) 237-2200 Facsimile: (670) 664-22Il12311

I ask the Legislature to pass legislation that would align the powers of the new governing board with the powers, defined in 42 CFR § 482.12. I will genuinely offer my assistance to the Legislature, CHCC, and the stakeholders in creating legislation that ensures the delivery of quality health care services to our residents in a financially responsible manner.

This bill becomes Public Law No. 19-78. Copies bearing my signature are forwarded for your reference.

Caller Box 10007 Saipan, MP 96950 Telephone: (670) 237-2200 Facsimile: (670) 664-221 112311

Public Law No. 19-78

J{ouse of �presentatives 19th NORTHERN MARIANAS COMMONWEALTH LEGISLATURE

P.o. BOX 500586

December 12, 20 16

The Honorable Ralph DLG. Torres Governor Commonwealth of the Northern Mariana Islands

Capitol Hill Saipan, MP 96950

Dear Governor Torres:

SAIPAN, MP 96950

I have the honor of transmitting herewith for your action H. B. No. 19-186, HD1, entitled: "To repeal and reenact certain sections of the Commonwealth Healthcare Corporation Act; to establish a Board of Trustees which shall managed and control the operations, functions and activities of the Commonwealth Healthcare Corporation.", which was passed by the House of Representatives and the Senate of the Nineteenth Northern Marianas Commonwealth Legislature.

Sincerely yours,

Attachment

:Nineteentfi Legis[ature of tfie


CommonweaCtfi of tfie :Nortfiern :Mariana Isfands

IN THE HOUSE OF REPRESENTATIVES

Fifth Special Session

July 14, 2016

Representative Felicidad T. Ogumoro, of Saipan, Precinct 3 (for herself) in an open and public meeting with an opportunity for the public to comment, introduced the following Bill:

H. B. No. 19-186, HDI

AN ACT

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The Bill was referred to the House Committee on Health, Education, and Welfare, which submitted Standing Committee Report 19-136; adopted 10/6/16.

THE BILL WAS PASSED BY THE HOUSE OF REPRESENTATIVES ON FIRST AND FINAL READING, OCTOBER 6, 2016;

with amendments in the form of H. B. 19-186, HDI and transmitted to the TIlE SENATE.

The Bill was referred to the Senate Committee on Health and Welfare. THE BILL WAS PASSED BY THE SENATE ON FIRST A D FINAL READING, DECEMBER 6, 2016;

without amendments and was returned to THE HOUSE OF REPRESENTATIVES

THE BILL WAS FINALLY ASSED ON OCTOBER 6, 2016.


Mneteentli Legisfature oftlie

Commonwea[tli of tlie :Nortliem :Mariana Isfands

IN THE HOUSE OF REPRESENTATIVES

Sixth Day, Fourth Regular Session

October 6, 2016

D. B. No. 19-186� HOI

AN ACT

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Be it enacted by the Nineteenth Northern Marianas Commonwealth Legislature:

Section 1. Findine:s and Purpose. The Nineteenth Northern Marianas

2 Commonwealth Legislature (Legislature) finds that it was the intent of the

3 Sixteenth Northern Marianas Commonwealth Legislature when it established the

4 Commonwealth Healthcare Corporation (Corporation), that it will develop and regulate, as

5 necessary, a high quality, efficient, and market oriented public healthcare delivery system in

6 the CNMI. And to the extent it determines prudent, the Corporation is authorized to enter

7 into performance management contracts and other types of contracts with the nonprofit and

8 private sector for management functions and delivery of healthcare services. Furthennore,


HOUSE BILL 19-186, HDI

the Corporation is to coordinate the delivery of quality healthcare to all Commonwealth

2 residents in a financially responsible manner, and that the Corporation is an independent

3 public healthcare institution, that is professionally managed, nationally accredited, and that it

4 is as financially self-sufficient and independent of the Commonwealth Government as

5 possible.

6 The Legislature strongly believes that for the Commonwealth Healthcare Corporation

7 to carry out and meet the purpose for which it was established, that certain sections of

8 Public Law 16-5 1 shall be repealed accordingly.

9 In the interest of maintaining an un-interrupted healthcare and medical service, and

10 for a smooth transition and transfer of the management and control of the Corporation from

I I the Chief Executive Officer (CEO) to the newly appointed Board of Trustees, the Legislature

12 agrees that the powers of the Corporation and the Board of Trustees, as herein provided, will

13 continue to be carried by the CEO for a period of six months from the date the Board of

14 Trustees is fully organized, pursuant to § 2823 (d) of this Act.

15 Section 2. Repealer and Reenactment. Title 3 , Division 2, Chapter 9, § 2822,

16 through §283 5 of the Commonwealth Code are hereby repealed and reenacted to read as

17 follows:

18 "Chapter 9. Commonwealth Healthcare Corporation Act.

19 § 2822. Definitions. As used in this chapter:

20 (a) "Trustee" means the Board of Trustees of the Commonwealth Healthcare

21 Corporation established pursuant to this Chapter.

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(b) "Chief Executive Officer" means a professional person with the (

education and experience in Healthcare Management hired by the Board of Trustees

as the Chief Executive Officer (CEO) to manage the Commonwealth Healthcare

Corporation in the Commonwealth.

(c) "Clinics" means the Tinian Health Center, Rota Health Center, the

Women's Clinic and the Children's Clinic and other related public health facilities

providing healtbcare and medical services in the Commonwealth.

(d) "Corporation" means the Commonwealth Healthcare Corporation

established pursuant to this Cbapter.

(e) "Health care professionals" means doctors, nurses, and those persons

licensed or certified to practice in the Commonwealth.

(f) "Hospital" means the Commonwealth Health Center on Saipan, and such

ancillary public health facilities as may from time to time be established in the

Commonwealth.

§2823. Establishment of Commonwealth Healthcare Corporation.

(a) There is hereby established in the Commonwealth a Commonwealth

Healtbcare Corporation, a public corporation.

(b) The Corporation shall be an independent public healthcare and medical

services provider, financially self-sufficient, professionally managed, and nationally

accredited whose purpose is to develop and regulate, as necessary, a high quality,

efficient, and market oriented public healthcare delivery system in the CNM1, and to

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HOUSE BILL 19-186, RDI

coordinate the delivery of quality healthcare and medical services to all

Commonwealth residents in a financially responsible manner.

(c) The Corporation shall be responsible for the management and operations

of the hospital on Saipan, and the clinics on Saipan, Tinian and Rota, including the

Community Guidance Center, the inter-island medical referral services, other clinics,

and, the Division of Public Health in the Commonwealth.

(d) Upon this Chapter becomes Law, the Corporation shall be managed

pursuant to this Chapter by the Chief Executive Officer (CEO) for six months

following the date the Board of Trustees are fully organized, to allow the trustees time

to familiarize and understand the management process and programs of the

Corporation, as its operations are complex, and subject to rigid compliance with

federal regulation. And at the end of the six-month period, thereupon, the

management and control of the Corporation shall be transferred to the Board of

Trustees. Thereafter, the CEO and the CFO shall report directly to the Board of

Trustees in accordance with this Chapter, and shall perform such duties and

responsibilities provided under this Chapter accordingly.

(e) The fiscal year of the Corporation shall correspond to that of the

Commonwealth Government.

§2824. Corporate Powers.

The Corporation shall have the following powers:

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(a) Overseas the management and operations of the Division of Public Health,

the hospital on Saipan and the clinics in the Commonwealth in accordance with this

Chapter.

(b) Maintain and operate healthcare facilities in the Commonwealth and

provide acute and chronic healthcare services within the Commonwealth and, to the

extent consistent with the certificate of need program, privatize the management and

delivery of healthcare and health related services in the Commonwealth through

performance management contracts and other types of agreements with healthcare

and medical service management company or corporation.

(c) Establishes a schedule of market oriented fees to meet its cost of

operations and other expenditures at all of its facilities in the Commonwealth for

providing healthcare and medical services, and other related services.

(d) Prepare and overseas the development and implementation of a multi-year

strategic plan that conforms with this Cbapter to make the Corporation self

sustaining.

(e) Acquire real property from tbe Department of Public Lands and other

persons, subject to the laws of the CNMI, by grant, purchase, gift, devise, or lease,

and hold and use any such real property necessary for future expansion of its facilities

and for other related used to further the Corporation's interest and objectives.

(f) Establish its internal organization and management;

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(g) Adopt its procurement and supply regulations for the purchase of goods,

materials, supplies and other commodities, and to contract other services as may be

needed or required.

(h) Adopt an official seal;

(i) Sues or be sued in its corporate name;

(j) Employs, retains or contracts the services of professionals, firms or

organizations, required to further the interests of the Corporation.

(k) Develops and adopts a personnel system, including a comprehensive

compensation plan, which shall be independent of the civil service system, and shall

be competitive.

(I) Adopt rules and regulations necessary for the implementation of this

Chapter.

(m) Adopts and maintains a system of accounting III accordance with

generally accepted accounting principles and practiced by successful healthcare

organizations in the United States.

(n) Adopt and maintain a financial management system relative to all funds

received and expended by the Corporations. This shall include timely billings and

collections of account receivables from patients, or from their medical insurance

providers (private, government, Medicaid or Medicare) for healthcare and medical

services rendered.

(0) Prepares, adopts, amends or repeals its bylaws.

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(p) Borrow money and provide security in connection with such borrowing,

from any private or public source, either within the Commonwealth or the United

States, if it is necessary or required to support and fulfill its obligations in accordance

with this Chapter.

(q) Establish by regulation a policy for the Corporation to administer a

subsidy program which will enable the Corporation to provide healthcare and medical

services to low income individuals;

(r) Assists any low income individuals requiring medical treatment to obtain

Medicaid assistance from the Medicaid Office.

(s) Do any and all other things necessary to help fulfill the provisions of this

Chapter.

§2825. Board of Trustees Established. The Board of Trustees is hereby

established, which shall have five members appointed by the Governor with the

advice and consent of the Senate. One trustee shall be from the First Senatorial

District, one trustee shall be from the Second Senatorial, and three trustees shall be

from the Third Senatorial District.

(a) A trustee shall be a citizen of the United States, a resident and a registered

voter of the Senatorial District he/she represents, and one who has not been convicted

of any crime in or outside the Commonwealth. A trustee shall have at least a

bachelor's degree from an accredited United States post-secondary institution and five

years of management and supervisory experience in the government, or private sector.

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HOUSE BILL 19-186, HDl

At least three of the trustees shall have a minimum of five (5) years experience in

healthcare management and/or services.

(b) The trustees shall serve a six-year term. The initial members shall serve a

staggered term. Three trustees shall serve a four-year tenn, and two trustees shall

serve a six-year term, as detennined by drawing of a lot.

(c) The Board of Trustees shall elect a chairman and any other officers from

among its members every two years. The chainnan and officers may be re-elected by

the trustees to continue to hold such positions.

(d) The presence of three trustees at a meeting called shall constitute a quorum

for the transaction of business.

(e) The Board of Trustees shall be compensated for meetings attended

pursuant to I CMC § 8247. The trustees, pursuant to applicable Commonwealth

laws, may be reimbursed for actual travel, subsistence, and out-of-pocket expenses

incurred in the discharge of their responsibilities.

(f) The trustees shall hold their meetings in the Commonwealth and should

comply with the Open Government Meetings and Records Act, I CMC § 9901 el

seq., including the methods of calling meetings of the Board of trustees.

(g) The trustees, staff management, employees, and others working for the

Corporation, shall restrict travel to essential needs only within the Commonwealth,

including Guam, unless such travel is required and necessary and is for the interest of

the Corporation, or paid for by federal or other special non-IOCNMl, public and

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HOUSE BILL 19-186, RDI

nonprofit funding sources for training, conferences and other business or educational

events.

(h) No trustee shall be liable for any decision made in the good faith non

malicious fulfillment of his/her duties and responsibilities.

(i) The trustees shall practice and exercise due diligent and fiduciary care in

the execution of their duties and responsibilities.

(j) The Governor may remove a trustee In accordance with

N.M.I. Constitution, Art. 1II, Section 21.

(k) The sitting advisory Board of Trustees shall cease to exist upon this Act

becomes law. However, the Governor may re-appoint a sitting advisory Board of

Trustees to serve as a trustee in accordance with this Chapter.

§ 2826. Powers and Duties of the Board of Trustees. The Board of

Trustees shall govern, manage and control the Corporation and shall execute the

Corporation's powers and duties provided and described under this Chapter as

follows:

(a) To govern the operation of the Corporation in a manner to further its

purposes.

(b) To initiate action necessary to exercise the powers of the Corporation

conferred by this Chapter.

(c) To prepare, and adopt rules, regulations and policies that may be required

for the full implementation of this Chapter, and to assure delivery of quality

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health care and medical services in the Commonwealth and the financial viability of

the Corporation that will best promote and serve its purposes.

(d) To prepare, adopt, implement, and update from time to time the

Corporation's business and strategic plan which IS required for the successful

implementation and enforcement of this Chapter.

(e) To prepare and adopt a fiscal year budget to support the operations and

functions of the Corporations, and the Board of Trustees. Such budget may be

submitted to the Legislature for infonnational purposes.

(f) To prepare and submit an annual report for each fiscal year, which shall

explain its operations, functions and activities, particularly on the quality of the

delivery of healthcare and medical services in the Commonwealth and to include the

Corporation's annual audited report showing its financial statements and balance

sheet, including its business and strategic plan to the Legislature and Governor no

later than 120 days after the end of the fiscal year.

(g) To review and evaluate annually the perfonnance of the CEO, CFO and its

independent professional contractors or consultants.

(h) To prepare and adopt the Corporation's Employment and Compensation

Policy and Guidelines for its employees, staff and management.

(i) To appoint the CEO, CFO, the Director of Medical Affairs, the Director of

Nursing, the Director of Community Guidance Center, the Resident Representatives

of the Rota Health Center and the Tinian Health Center to serve as member of the

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Healthcare Advisory Committee (HAC) of the Corporation. The HAC will be chaired

by the CEO, and shall meet on a quarterly basis, or whenever called by the CEO to:

( I) assist the Board of Trustees in preparing, planning and

implementation of the business and strategic plan of the Corporation as

required by this Chapter;

(2) make recommendation for inclusion in the Corporation's fiscal

year budget, and on other matters assigned to it by the trustees in accordance

with this Chapter; and

(3) review and discuss the progress and needs of and matters that are

affecting the Corporation, such progress review, findings, and needs, and

matters affecting the Corporation shall be reported in writing and submit to the

Board of Trustees by the CEO, on behalf of the HAC, on the next meeting of

tbe trustees. The Board of Trustees may require the presence of Tbe Health

Advisory Committee to discuss the said report, and on matters that may affect

or belp furtber tbe interest of the Corporation.

§ 2827. Chief Executive Officer (CEO).

(a) Upon the position of the Chief Executive Officer becomes vacant, the

Board of Trustees shall recruit and retain a qualified person to be a fulltime Chief

Executive Officer (CEO) of the Corporation. The person shall have at least a master's

degree in healthcare administration, business management, or other relevant field of

study from an accredited university or college. The CEO shall have at least seven (7)

years of experience in healthcare management, including total healthcare management

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responsibilities for at least 50 employees. The person must be a U.S. Citizen, or a

permanent resident of the United States; and not convicted of any crime within or

without the Commonwealth.

(b) Upon the effective date of this Chapter, and the Board of Trustees are fully

organized, the CEO shall continue to manage the operations and functions of the

Corporation for a period of six months, pursuant to § 2803 (d) of this Chapter.

During the initial six month period, the Board of Trustees will act as an advisory

board, however, the CEO, in performing the provisions of this Chapter, particularly

§ 2824 and § 2826, shall consult regularly with the Board of Trustees, or its

Chairman, and shall take into senous consideration official advice and

recommendations made and submitted by the Board of Trustees, otherwise, shall

respond in writing for refusing or not complying to such advice and recommendations

within 30 working days to the Board of Trustees.

(c) Within the initial six-month period, the CEO shall call a meeting with the

Board of Trustees every month to update the Board of Trustees on the management,

operations, revenues and expenditures (financial statements), budget of the

Corporation, and the planning, preparation, enforcement and execution of the

provisions of this Chapter. Failure to call such meeting, the Chairman of the Board of

Trustees shall call, requiring the attendance of the CEO and CFO.

(d) At the end of each calendar year, and no later than 30 working days, the

Board of Trustees shall evaluate constructively the performance of the CEO in the

execution of his/her duties and responsibilities in accordance with this Chapter and

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other related duties assigned to the CEO. The Board of Trustees shall infonn the

CEO the result of such evaluation and if necessary, at the request of either party, have

a meaningful discussion for improvement.

(e) The CEO shall practice and exercise due diligence and fiduciary care in the

execution of hislher duties and responsibilities.

(f) The CEO shall devote and concentrate full time to the operations, functions

and business of the Corporation, and hold no other public or private position within or

outside the Commonwealth.

(g) The CEO may be terminated only for good cause by the Board of Trustees.

(h) The CEO shall:

(1) Enforce the rules, regulations and policies of the Corporation,

pursuant to this Chapter, and other related functions that may be required as

recommended by the Board of Trustees.

(2) Convene the meetings of the Healthcare Advisory Committee for

the purposes of assisting the trustees in preparing, planning and putting

together a comprehensive business and strategic plan for the Corporation, in

accordance with § 2826 (d), and (i)( 1), rules, regulations and policies,

pursuant to § 2826 (c), and the annual budget for the operations and functions

of the Corporation, pursuant to § 2826 (e), and (i)( l ), of this Chapter.

(3) Apprise the Board of Trustees of the needs of the Corporation, and

its budget.

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(4) Prepare or cause to be prepared all plans and specifications for the

construction and repair of facilities operated by the Corporation as may be

needed. The plans and specifications for such construction and repair works

shall be reviewed and approved by the trustees.

(5) Organize, direct, coordinate and manage the services of the

Corporation and, the hiring of sucb employees to perform any of the tasks,

works or other services that are necessary and required.

(A) The hiring of key personnel, to include but not be limited

to physicians, head nurse(s), medical technicians, attorney, consultant,

architect, engineers, and other professionals shall be through the

issuance of a job vacancy announcement approved by the CEO in

consultation with the Board of Trustees. The trustees may waive the

issuance of such announcement for direct and immediate hiring only

on a case by case basis if the CEO justifies tbe need of such hiring.

(6) Shall prepare a monthly, quarterly and yearly financial statements

for review by the Board of Trustees, and at the end of each fiscal year, an

annual report as required pursuant to § 2826 (f) of this Chapter. The annual

report shall be in printed form and be made available online for public

vlewtng.

(7) Implement and monitor the progress of the Corporation's multi

year business and strategic plan, including its progress toward the

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HOUSE BILL 19-186, HD1

accreditation by the national agency that certifies hospitals, which shall be

included in the annual report as required under § 2826 (I) of this Chapter.

§ 2828. Hiring or Appointment. The CEO shall comply with

§ 2827 (d)(5)(A) of this Article in the appointment of the Director of the Division of

Public Health, Director of Medical Affairs, Director of Nursing, Director of the

Community Guidance Center, Resident Director to manage the Tinian Health Center

and Resident Director to manage the Rota Health Center and other physicians as the

CEO may detennine necessary for the efficient operation of the Corporation. The

individual that is appointed to such positions shall meet the requirements of this

section as set forth in the subsections below. The individuals appointed to such

positions will be under the direct supervision of the CEO.

(a) The Chief Medical Officer (CMO) shall be a licensed physician with at

least five years' clinical experience and three years of healthcare management

experience. The CMO shall be responsible for monitoring the delivery of quality

healthcare, and serve as liaison between the medical staff and the administration, and

perfonns such other responsibilities as the CEO may assign.

(b) The Director of Nursing (DON) shall have a master's degree in nursing

science and at least seven years of nursing management experience. The Director

shall be responsible for the daily operations of the nurses who are employed at CHCC

(hospital and clinics), including the nursing unit.

(c) The Director of the Community Guidance Center (DCGC) shall have a

master's degree in public health administration and at least five years of mental health

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management experience. The Director shall be responsible for the daily operations of

the Community Guidance Center and its employees.

(d) The Resident Directors for the Tinian and the Rota Health Centers

shall have at least a bachelor's degree plus five years of management experience in

healthcare. The Resident Directors for Tinian and Rota shall be responsible for the

daily operations of their Healthcare Centers.

(e) Upon the effective date of this Chapter, the individuals holding such

positions described in subsections (a), (b), (c) and (d) of this section, shall continue to

hold their positions unless they resign, or are removed for cause by the CEO in

consultation with the Board of Trustees.

(f) With respect to legal services, the Attorney General shall designate and

assign an attorney /Tom the Office of the Attorney General. The attorney shall serve

in the best interest of the Corporation, and shall work closely and directly with the

CEO and the Board of Trustees on all legal matters addressing and affecting the

Corporation. If it will serve the best interest of the Corporation, the Attorney General

may allow the Corporation to hire an attorney to render legal services to the

Corporation. Such hiring shall be in accordance with § 2827 (d)(5)(A) of this Chapter.

§ 2829. Chief Financial Officer (CFO). In consultation with the Board of

Trustees, the Chief Executive Officer shall recruit and retain a qualified person to

hold and be a fulltime CFO of the Corporation. The person shall have at least a

master degree in business administration and five years of experience as a CFO in

healthcare finances or related fields. The person must be a U.S. Citizen, or permanent

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resident of the United States; and not convicted of any crime within or without the

Commonwealth.

(a) The CFO shall report directly to the Chief Executive Officer. The CFO

shall work cooperatively with the CEO to assist the trustees in the planning,

preparation, management, enforcement and execution of this Chapter. In addition, tbe

CFO shall perform such other duties as required herein and as assigned by the Chief

Executive Officer.

(b) The CFO shall have custody of all moneys of the Corporation subject to

the rules and regulations of the Corporation. The moneys shall be used only pursuant

to an approved budget and authorized expenditures of the Corporation reviewed and

endorsed by the Board of Trustees. The CFO shall review all requests for payment

legitimately, and may approve or disapprove such request for payment based upon

his/her findings.

(c) The CFO shall devote and concentrate full time to the operations and

functions and business of the office, and bold no other public, or private position

within or outside the Commonwealth.

(d) The CFO shall practice and exercise due diligence and fiduciary care in the

execution of his/her duties and responsibilities.

(e) The CFO may be terminated only for cause by the Board of Trustees.

(f) In determining the compensation for the CEO, and CFO, the Board shall

reference compensation paid to CEOs, and CFOs in similar positions in the

Commonwealth Government, or the public sectors.

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(g) At the end of each calendar year, and no later than 30 working days, the

CEO shall evaluate constructively the performance of the CFO in the execution of

hislher duties and responsibilities in accordance with this Chapter and other related

duties assigned to the CFO. The CEO shall inform the CFO the result of such

evaluation and if necessary, at the request of either party, have a meaningful

discussion for improvement.

§2830. Healthcare Operations Fund (HOF), Established.

(a) There is hereby established the "Healthcare Operations Fund (HOF)"

which shall be maintained separate and apart from the general fund and other funds of

the Commonwealth Government. The CFO shall manage the HOF for the

Corporation. The HOF shall be established in an FDIC Bank doing business in the

Commonwealth. The CFO shall deposit all moneys or funds received by the

Corporation into the Healthcare Operations Fund, including funds appropriated by the

Legislature and from other sources.

(b) All operational expenses of the Corporation shall be paid from the

Healthcare Operations Fund, including debts, and other obligations.

(c) The CFO shall assist the CEO in the preparation of the Corporation's

annual budget and the Annual Report, which sball include the Corporation's financial

statements and others as required under this Chapter. The CFO shall prepare the

monthly financial reports of the Corporation for review by the Board of Trustees, and

shall make such financial reports readily available upon the request by the Governor

and tbe presiding Officers of the Legislature, including the Public Auditor, and a

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private auditing firm hired to prepare and produce the Annual Financial Audited

Report of the Corporation as herein required.

(d) The expenditure authority of all funds collected or received by the

Corporation, or funds appropriated by the Legislature to the Corporation, shall be the

Chairman and the Treasurer of the Board of Trustees.

§ 2831. Emplovment Policv.

(a) The staff and employees of the Corporation shall be exempt from the

application of the Commonwealth Civil Service Act, as amended (I CMC § 8 101 et

seq.). The Corporation shall develop, adopt, and administer a merit-based personnel

system that rewards productivity and service, provides management flexibility, and

shall include provisions for employees to appeal disciplinary actions. The Corporation

shall adopt a personnel policy manual that sets forth the selection, promotion,

performance evaluation, demotion, suspension, dismissal, and other disciplinary rules

for employees of the Corporation. Such policy shall include:

(I) No recommendation of any person who applies for examination or

appointment to any office or position within the Corporation which may be

given by an elected official of the Commonwealth, except as to the ability or

character of the applicant, shall be considered by any person in the giving of

any examination or in the making of any appointment under the personnel

system of the Corporation.

(2) No person shall make any false statement, certificate, mark, rating,

or report with regard to any test, certification, or appointment made under the

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personnel system of the Corporation, nor commit or attempt to commit any

fraud preventing the impartial execution of any provision of the personnel

system of the Corporation.

(3) No person shall, directly or indirectly, give, pay, offer, solicit, or

accept any money, service, or other thing of value to obtain any appointment,

proposed appointment, promotion or proposed promotion to, or obtain any

advantage in, a position within the Corporation.

(b) Employees of the Corporation shall be eligible to participate In any

Commonwealth health and life insurance plan. Tbe Commonwealth Workers'

Compensation Law shall apply to employees of the Corporation, and compensation

payments pursuant thereto shall be made by the Corporation.

§ 2832. Immunity from or Indemnification for Civil Liability-Defense of:

The Government Liability Act, 7CMC § 220 I et seq., shall apply to the

Commonwealth Healthcare Corporation, and to the Board of Trustees, as if the

members of the board were employees of the Corporation.

§ 2833. Assumption of Rights, Obligations and Duties of the Government

or the Department of Public Health.

(a) To the extent feasible, and notwithstanding any liabilities or financial

obligations that are due prior to the establishment of the Commonwealth Healthcare

Corporation, the Corporation shall assume all rights, obligations and duties of the

Government or the Department of Public Health under any agreements to which they

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are parties that relate to the financing, operation or delivery of healthcare services in

the Commonwealth;

(b) All lawful obligations of the government or the Department of Public

Health existing during the effective date of this Act, and all fines, taxes, penalties,

forfeitures, obligations and rights, due, owing or accruing to the government or the

Department of Public Health, and all writs, prosecutions, actions and proceedings by

or against the government or the Department of Public Health shall remain unaffected

by adoption of this Act and, shall remain the legal responsibility of the CNMI

government and not the Corporation, unless, such cases or obligations occurred

following the establishment of the Commonwealth Healthcare Corporation;

(c) This Act shall not be deemed to affect petitions, hearings and other

proceedings pending before the Department of Public Health and legal proceedings

and investigations to which the Department of Public Health is a party. The

Corporation shall assume and succeed the Department without further action, in all

matters and orders relating to the functions and duties assumed by of the Corporation

as of the effective date of this Act;

§ 2834. Personnel Rules Applicable During Transition. As further provided

in § 2831, as amended, of this chapter, the personnel laws and rules and regulations

applicable to the employees working for the Corporation on the effective date of this

Act shall continue to apply to the Corporation until such time the Corporation's merit

based personnel rules and regulations take effect.

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Section 3. Amendment. I CMC § 813 1 (a) is hereby amended to add a new

2 paragraph to read as follows:

3 "( 14) Personnel and staff of the Commonwealth Healthcare Corporation."

4 Section 4. Severabilitv. If any provision of this Act or the application of any such

5 provision to any person or circumstance should be held invalid by a court of competent

6 jurisdiction, the remainder of this Act or the application of its provisions to persons or

7 circumstances other than those to which it is held invalid shall not be affected thereby.

8 Section 5. Savings Clause. This Act and any repealer contained herein shall not be

9 construed as affecting any existing right acquired under contract or acquired under statutes

10 repealed or under any rule, regulation or order adopted under the statutes. Repealers

II contained in this Act shall not affect any proceeding instituted under or pursuant to prior law.

12 The enactment of the Act shall not have the effect of terminating, or in any way modifying,

13 any liability, civil or criminal, which shall already be in existence on the date this Act

14 becomes effective.

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HOUSE BILL 19-186, HD1

Section 6. Effective Date. This Act shall take effect upon its approval by the

2 Governor or becoming law without such approval.

Allested to by:

'C:::..:::.'-'� .. -. a, House Clerk

Certified by: SP�EMAPAN House of Representatives

19'h Northern Marianas Commonwealth Legislature

-I-Ar'4'1----;;th;.;iSoiiiL� day of-F-----f----'--f---, 201

o rnor Commonwealth of the Northern Mariana Islands

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HB 19-186, HD1 001

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