Commonwealth Public Utilities Commission Act of 2006 (P.L. 15-35)

§ 8401 et seq.; and for other purposes. BE IT ENACTED BY THE FIFl'EENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE: 1 Section 1. Illlt• This Act may be cited at the "Commonwealth Public Utilities 2 Commission Act of2006." 3 Section 2. Repealer and Re:enactment. Title 4, Division 8, Chapter 4 is repealed and re-enacted to read as follows: "CHAPTER 4. PUBLIC UTILITIES COMMISSION Article 1. General Provisions.

§ 8401. Short Title. This Chapter may be cited as the Public Utilities Commission Act.

§ 8402. Definitions. As used in this Chapter: 1 (a) •cable Television Company' means any person or corporation that owns, controls, administers, operates, manages, provides or resells, in full or in part, directly or indirectly, any cable television line system or service in the Commonwealth and has been granted a license to provide cable service in the Commonwealth. (b) •commission' or 'PUC' means the Public Utilities Commission. (c) •Just and Reasonable' means that rate, charge or assessment cost which enables a public utility, telecommunications company, and cable television company an opportunity to finance its capital improvements needs, cover all its operating and debt expenses, and earn a reasonable rate of return on its investment in the Commonwealth. PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 (d) 'Person' means any individual, corporation, partnership, association, 2 business trust, company, joint venture company, limited liability company, 3 government or government subdivision, corporation, or agency, or any other legal 4 entity. 5 (e) 'Public Utility' means the Commonwealth Utilities Corporation, and any 6 duly licensed private contractor operating: 7 ( 1) a facility or subsystem of the community-wide water production 8 and distribution system or electrical production and/or distribution system; or 9 (2) a facility or subsystem of the community-wide waste water disposal 1 system, or both. 11 (f) 'Regulated Entity or Entities' or 'Entity' means all persons regulated by the 12 Commission, including public utilities, telecommunications companies and the cable 13 television companies. 1 (g) 'Telecommunications Company' means any person or corporation that 1 owns, controls, administers, operates, manages, provides or resells, in full or in part, 1 directly or indirectly, any telecommunications line system or service in the 1 Commonwealth. 1 (h) 'Telecommunications Service' means the transmission between or among 1 points specified by the user, of information of the user's choosing, without change in 2 the form or content of the information sent and received, for a fee directly to the public, or to such classes of users as to be effectively available directly to the public, regardless of the facilities used.

§ 8403. Public Utilities Commission: Establishment and Commissioners. (a) There is established in the Commonwealth government the Public Utilities Commission, a regulatory agency, in accordance with Article III, Section 15 of the Commonwealth Constitution. The Commission shall be an independent agency within the executive branch of the Commonwealth government and not part of any principal department. The Commission shall be composed of five (5) members to be called Commissioners. The Governor, with the confirmation of both the Senate and the House of Representatives of the Commonwealth Legislature, shall appoint all five Page2 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SD 1 1 members; at least one of whom shall have training and experience in the field of 2 telephone, water, or sewer utilities management; at least one member with managerial 3 or engineering experience in the field of power generation; at least one member with 4 telephone or cable television experience; and at least one member who is a certified 5 public accountant. At least one (1) Commissioner shall reside on Tinian, one (1) 6 Commissioner shall reside on Rota, and at least three (3) Commissioners shall reside 7 on Saipan. 8 {b) All commissioners shall serve terms of four (4) years. Provided, at the first 9 meeting of the commission, the first commissioners shall draw lots determining the 10 terms of the first Commissioners; two (2) shall serve terms of two (2) years, and three 11 (3) shall serve terms of four (4) years. 12 (c) Any vacancy occurring in the membership of the Commission during a 13 term shall be filled by the Governor by appointing a person consistent with subsection 1 (a) of this section to serve out the remaining portion of the vacated term. Such time in 1 service shall not count towards the two term limitation in subsection (d) of this 1 section. 1 (d) No Commissioner may serve more than two (2) terms. 1 (e) No Commissioner shall be an employee of the government of the 1 Commonwealth or any of its agencies or any entity regulated by the Commission, nor may a commissioner serve as a consultant to any entity regulated by the Commission, nor may a commissioner serve as a member of any other government board or commission. Acceptance by a Commissioner of any position in violation of this section automatically terminates that person's term of office. {f) When there is a change of administration of the government of the Commonwealth after a gubernatorial election, no courtesy resignation sha11 be requested by the new administration of the government nor offered by any Commissioner. (g) A Commissioner shall be qualified to vote in the Commonwealth, be at least twenty-five years of age, and a resident and domiciliary of the Commonwealth for at least five years immediately preceding the date on which the member takes Page 3 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl l office. All commissioners shall have at least graduated from an accredited university 2 or college with a four-year academic degree. 3 (h) The members of the Commission shall elect a chairperson. 4 (i) The Commission may suspend for cause any member of the Commission 5 after due notice and public hearing. 6 (j) No person owning any bonds of any entity regulated by the Commission or 7 deriving any remuneration from any entity regulated by the Commission shall be 8 eligible to serve as a Commissioner or be employed by the Commission. Further, no 9 person who is an officer or director, or who owns a financial interest in a corporation 1 or partnership doing business with a regulated utility shall be eligible to serve as a 11 Commissioner or be employed by the Commission. 12 (k) No Commissioner shall during the two (2) years immediately following 13 termination of service on the Commission be employed by any entity that is regulated 1 by the Commission.

§ 8404. Compensation of Commissioners. The Commissioners shall be compensated pursuant to the provisions of 1 CMC § 8247 plus travel costs and per diem, if applicable for the purpose of attending official Commission meetings. Rules and rates for official travel and per diem shall be the same as those established for the executive branch.

§ 8405. Cause for Dismissal. In accordance with Article III, Section 21 of the NMI Constitution, the Governor may dismiss a Commissioner only for one or more of the following causes: (a) gross neglect or dereliction of duty; (b) breach of fiduciary duty; (c) conviction of a felony; or (d) mental or physical incapacity.

§ 8406. Operation of Commission. (a) The Commission may employ agents, employees, hearing examiners, or contract for services, specialists, experts, or professionals as individuals or as organizations to advise and assist the Commission and its employees. The Commission may appoint an executive director who shall serve at the pleasure of the Commission and may be dismissed with or without cause by the majority vote of the Commission. The executive director shall be compensated pursuant to the provisions of 1 CMC § 8246. The Commonwealth Civil Service Act [l CMC § 8101 et seq.) Page4 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 shall apply to all administrative or clerical employees of the Commission. All other 2 employees shall be ex.empt from the application of the Commonwealth Civil Service 3 Act. 4 (b) The Commission may retain an attorney, who shall serve at the pleasure of 5 the Commission and whose duties shall be fixed by the Commission; provided that 6 the attorney shall not act as the Commission's hearing examiner. The attorney, shall 7 be admitted to practice before the Supreme Court of the Commonwealth of the 8 Northern Mariana Islands, shall advise the Commission on all legal matters to which 9 the Commission is legally interested and may represent the Commission in connection 10 with legal matters before the legislature, the courts of the Commonwealth, 11 government boards, and other agencies of the Commonwealth. The Commission is 12 authorized to establish by rule or order that each entity regulated under this Chapter 13 shall be assessed the costs incurred by the Commission for professional services 1 rendered by the attorney. The attorney shall have the power to review and approve contracts for legal form and sufficiency in accordance with the procurement laws of the Commonwealth. (c) If a regulated entity's determination is reversed by the Commission, then the Commission shall award reasonable attorney's fees to the customer and costs. The remedies contained in this Chapter are not ex.elusive and the customer may, at the customer's sole option, pursue any other remedies available at law.

§ 8407. Operation of Commission-Additional. (a) Notwithstanding any other provision oflaw, the Commission may meet for purposes of gathering information on entities and requesting, demanding, and accepting reports and documents from regulated entities, and for other purposes. The Commission may continue in limited operation, as funds are available or on a volunteer basis, for purposes of monitoring the regulated entities and making such orders, rules, and regulations, as may be appropriate to monitor such agencies and ensure compliance with orders of the Commission. Financial documents and reports submitted to the Commission are hereby declared to be public documents. Page 5 PUBLIC LAW NO. 15-35 HOUSE BILL No. 1S-55, HS21 HD3z SDI - - ----------- -- 1 (b) Three (3) Commissioners shall constitute a quorum. An affirmative vote of 2 a simple majority of the Commissioners present at a meeting where a quorum is 3 present shall be required for the Commission to Act or issue a decision. 4 § 8408. Annual Report. The Commission shall prepare and present to the Governor 5 and to the presiding officers of the Legislature, in January of each year, a report regarding its 6 actions during the preceding fiscal year, if any, together with its recommendations respecting 7 legislation. 8 ARTICLE 2. GENERAL POWERS AND DUTIES 9 § 8409. General Powers and Duties. The Commission shall have regulatory oversight 1 supervision over each regulated entity as set forth in this Chapter and shall perform the duties 11 and exercise the powers imposed or conferred upon it by this Chapter. The Commission in 12 the discharge of any of its duties or the exercise of any of its powers, except a final 13 determination affecting an entity, may act through one or more of its Commissioners 1 designated by the Commission for this purpose. In addition to the powers and duties 1 elsewhere conferred and imposed, the Commission shall: 1 (a) Regulate alt rates, fares, fees, charges, services, rules, conditions of 1 service, and all other matters pertaining to the formation, operation, and/or direction 1 of a regulated entity. 1 (b) Investigate and examine any rates and charges assessed by any entity, and all records pertinent thereto. The Commission may seek advice from an independent expert and shall approve, disapprove, increase, or reduce rates for each entity. (c) Establish and modify from time to time, reasonable rates and charges for services, which when all rates for respective blocks of usage are considered together, shall be at least adequate to cover the full cost of such service or subject to any contractual agreements of each entity to the holders of any bonds and shall increase rates or charges from time to time as may be necessary pursuant to any contractual obligations. (d) Review and approve or disapprove any divestiture of capital or contractual agreement which may increase rates and charges to the consumer. Page6 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 (e) Conduct such investigation and hearings as to any request for rate change 2 to determine if the change is necessary. No rate change may be approved by the 3 Commission unless it is affirmatively established, by a preponderance of the 4 evidence, that the rate change is necessary. 5 (f) Ensure that rates will, at all times, 6 ( 1) be sufficient to enable each entity to meet its financial obligations, 7 operating expenses, debt service, capital improvement needs; and 8 (2) accurately reflect the true cost or savings to electrical consumers of 9 renewable energy as defined under 4 CMC § 862l(d). 10 Any rate change shall be considered by the Commission using standards and 11 financial criteria consistent with generally accepted rate-making practices of each 12 entity and in full consideration of the requirements of maintenance of service to the 13 public. 14 (g) Enter into contracts and execute all instruments necessary or convenient in 15 the exercise of its powers. 1 (h) Adopt a seal. 1 (i) Consider any factual testimony and evidence presented by the public at any 1 public hearing concerning the establishment or modification of any rate. 1 (j) Establish procedures for the presentation of any member of the public at public hearings. In determining whether a member of the public may be allowed to present witnesses, the Commission shall take into account an offer of proof to be filed with the application for such privilege and determine whether the proof offered would add anything to the proceedings. The request to present witnesses may be denied if the Commission finds that such Action is of a dilatory nature or would otherwise unduly impede the operations of the Commission. (1) The right to present evidence and witnesses shall be liberally granted as long as such Activity would not unduly impede the Activities of the Commission or delay the decision making process of the Commission. Nothing herein shall prevent any witness from testifying at a public hearing on his own behalf and presenting any type of documentary or physical evidence Page 7 PUBLIC LAW HO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 at the time of testimony which may be relevant to the matter before the 2 Commission. 3 (2) The Commission shall give such weight to the testimony and 4 evidence presented by the public as it gives to evidence presented by the 5 participants before the Commission in the docket concerned and shall hold the 6 evidence presented by the public to the same criteria, the same standards of 7 proof, and the same rules of evidence as would be applicable to a participant. 8 (3) The Commission shall allow any participant to make objections to 9 the introduction of evidence by any member of the public upon any grounds 10 which would be appropriate if such evidence were being presented by a 11 participant to the proceedings. 12 (4) The Commission may allow cross-examination of witnesses by 13 participants to the proceedings and may, if appropriate, allow participants an 14 opportunity to refute evidence presented by the public if the interests of justice 15 so require. 1 (k) Prepare and submit a budget to the legislature for its approval. 1 (1) Adopt its own accounting system in coordination with the Department of 1 Finance. 1 (m) Promulgate such orders, rules, and regulations and to adopt such policies as necessary for governing: (1) Its internal operations, including but not limited to matters regarding quorum, type and frequency of meetings, employment and compensation of experts, consultants, examiners, office clerks and other personnel, and ethics governing the relationship between its officers and personnel and entities; (2) conduct of hearings, proceedings, appeals, and investigations before the Commission; (3) payment of charges accessed in accordance with this Chapter, including the imposition of interest and/or penalties for nonpayment of such charges; (4) issuance, renewal, or revocation oflicenses and certificates of public convenience and necessity; (5) maintenance of the officia1 files and dockets of the Commission and the public availability of such files or dockets; and (6) requirements and procedures for informal ratepayer complaints by the telecommunications company. Page8 PUBLIC LAW KO. 15-35 HOUSE BILL No. 15-55[ HS2, HDJ, SDl I (n) To promulgate such other orders, rules, and regulations and adopt such 2 policies as are necessary and appropriate for the exercise of its regulatory and 3 enforcement powers in accordance with this Chapter. 4 § 8410. Powers. The Commission shall have the following powers which it may 5 exercise in carrying out its mandate to regulate rates: 6 (a) To examine the financial records of each regulated, including but not 7 limited to, all bank records; the terms and conditions of any contract with the United 8 States Government or any other governmental agency, department, or division; terms 9 and conditions of any refinancing provisions by the Federal Finance Bank and the 1O Department of the Interior; its costs of operations and costs charged to it by the 11 United States Government or any other governmental agency, department, or division; 12 schedules of rates and classifications; the value and condition of the entity's physical 13 property, including that of the United States Government or any other governmental 14 agency, department, or division where appropriate; the issuance on behalf of the 15 utility of bonds and the disposition of the proceeds thereof; the volume of unit sales; 1 the amount and disposition of its income; all its financial transactions; its compliance 1 with contracts, covenants, promissory notes, and other terms of indebtedness; its 1 compliance with all applicable Commonwealth and federal laws. 1 (b) The power to require every entity subject to its jurisdiction to maintain 2 such books, accounts, documents, and files and to present to the Commission such information or documents that the Commission determines are reasonably necessary for the exercise of the Commission's authority and for achieving the purposes of the Commission. (c) The power at any time to examine the financial condition of entities. (d) The power at any time to examine all procurement documents where public procurement was utilized in accordance with this part or under the enabling statutes of the respective governmental agency, department, or entity.

§ 8411. Valuations. The Commission may cause a valuation to be made to ascertain for any purpose specified in this Chapter the value of the property of any entity and every fact and element of value which in its judgment may have any bearing on such value. The Page 9 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 Commission may make reevaluations and ascertain the value of all additions, extensions, and 2 acquisitions of property of any entity. Such valuations shall be in accordance with 3 commercial standards for the particular industry and in accordance with normal and accepted 4 accounting practices. 5 § 8412. Compelling. Attendance of Witnesses. In all investigations made by the 6 Commission and in all proceedings before it, the Commission shall have the same powers 7 respecting administering oaths, compelling the attendance of witnesses, the production of 8 documentary evidence, and examining witnesses as are possessed by the Superior Court. 9 (a) In case of contempt or disobedience by any person to any order of the 1 Commission or any subpoena issued by it, or of the refusal of any witness to testify to 11 any matter regarding which he may be questioned lawfully, the Superior Court, on 12 application by the Commission shall compel obedience and punish said person as in 13 the case of disobedience of the requirements of a subpoena issued from the Superior 1 Court or a refusal to testify therein. 1 (b) Nothing herein shall be construed as in any manner giving to any entity 1 immunity of any kind except as may already be conferred by law. The fees and 1 traveling expenses of witnesses shall be the same as allowed witnesses in the Superior 1 Court and shall be paid out of any appropriation available for the expenses of the 1 Commission. (c) All meetings and hearings of the Commission shall be public and minutes and records of each meeting shall be kept. Personnel matters of employees of the Commission may be handled in an executive session. All matters of claimed trade secrets may be handled in an executive session, per the request of the entity being examined by the Commission. (d) Records of the transcripts of all meetings shall be made and kept for a period of no less than five (5) years. Transcripts of such sessions shall be available to the public in a reasonable time after receipt of a request, but in no case more than one month from the date of the request. Transcripts of executive sessions, except by other order of the Commission or a court of competent jurisdiction authorizing earlier release, shall be available to the public no later than two (2) years following the date Page 10 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 of the executive session. Where the Commission orders a delay in the release of the 2 records of executive session, the Commission shall state in writing to the requesting 3 person or entity the reason for the delay in release and the date that such records shall 4 be made available for public review and release. Such order of the Commission may 5 be appealable directly to the Superior Court. Nothing in this section shall be construed 6 as preventing access of an employee from timely receipt of a copy of the transcript of 7 any meeting, executive or otherwise, where such meeting was concerning the 8 employment status of the respective employee. Timely access with respect to 9 employee matters is deemed to be no more than one month from the date of the 10 request. 11 § 8413. Enforcement Powers. The Commission may: 12 (a) Carry out public hearings and investigations; 13 (b) Issue subpoenas, orders to show cause and citations with warning of 14 contempt. Any subpoena or citation with warning of contempt shall be signed by the 15 Chairman or, where the Commission has delegated authority over the matter, the 1 Commissioner or examiner so delegated, and notice thereof shall be served consistent 1 with Title 7, Division 1 of the Commonwealth Code. 1 (c) Initiate such actions or proceedings before the Superior Court to enforce 1 any final order, decision, citation or subpoena. If enforcement of a Commission order, decision, citation or subpoena is ordered by the Superior Court, it shall award the Commission costs and attorneys fees. (d) Appear in any hearing or proceeding that is related to any matter that affects or may affect public utilities, telecommunications services, or cable television within the Commonwealth or before any private entity, public organization, court, board, committee, administrative organization, department, office or agency of the Commonwealth or Government of the United States. (e) Impose and order the payment of costs, expenses and attorneys fees, together with the payment of expenses and fees for other professional and consulting services incurred in investigations, hearings, and proceedings before the Commission. (f) Impose administrative fines. Page 11 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDI 1 § 8414. Consumer Counsel. In any proceeding before the Commission, the 2 Consumer Counsel of the Office of the Attorney General may intervene and participate as a 3 party. 4 ARTICLE 3. GENERAL PROCEDURAL REQUIREMENTS OF COMMISSION 5 § 8417. Notice of Hearings. Whenever an investigation or proceeding is undertaken 6 by the Commission, reasonable notice in writing of such fact and of the subject or subjects of 7 the investigation or proceeding shall be given to the entity concerned, and a notice in writing 8 of the date and place fixed by the Commission for beginning the investigation shall be served 9 upon the entity not less than two (2) weeks before the date designated for the hearing. 10 § 8418. Public Hearings. The Commission shall hold public hearings on any change 11 in proposed rates or charges. 12 (a) The notice of public hearing herein provided for shall plainly state the 13 rates, charges, or assessment costs proposed to be established, abandoned, modified, 14 or departed from, and the proposed effective date thereof. 15 (b) No hearing shall be held unless a notice of the hearing, with the purpose 1 stated thereof and the date, time, and place at which it will be held has been advertised 1 not less than once in each of three (3) consecutive weeks in a newspaper of general 1 circulation in the Commonwealth, the first publication being not more than twenty~ 1 one (21) days before the scheduled hearing and the last publication being not less than two (2) days before the scheduled hearing. The Commission may use additional media such as radio or television to advise the public if it finds it necessary to do so. (c) The entity shall notify its customers of the proposed change in rates in the normal billing process not less than three (3) weeks before the date set for the public hearing. (d) All costs for public notice shall be borne by the entity requesting the rate increase or modification.

§ 8419. Right to be Represented by Counsel. At any investigation by or proceeding before the Commission, the entity concerned shall have the right to be present and Page 12 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 represented by counsel, to present any evidence desired, and to cross-examine any witness 2 who may be called. 3 § 8420. Rulemaking Authority: Procedures and Fees. In the hearings before it, the 4 Commission may establish its own procedures for the conduct of hearings and the admission 5 of evidence. The Commission shall not be bound by the strict rules of the common law 6 relating to the admission or rejection of evidence, but may exercise its own discretion in these 7 matters with a view to doing substantial justice. 8 (a) The Commission may establish and amend a schedule of reasonable fees 9 and costs for copies of papers and records requested by interested parties, and for the 10 filing and serving of papers and documents required of entities by this Chapter. 11 (b) All such fees and costs charged and collected in accordance with this 12 section shall be paid into the Public Utilities, Telecommunications and Services 13 Commission Revolving Fund. 1 ARTICLE 4. REVIEW OF RA TES AND COMMISSION FuNDING

§ 8421. Review ofRates. Operating Cost o(Commission. (a) In addition to every other responsibility imposed upon the Commission by this Chapter, it shall within three hundred sixty five (365) days after the Commission first meets conduct review of the rates of every entity to determine whether they are just and reasonable and shall take such action thereon to increase or decrease rates as it may deem appropriate. (b) The Commission shall operate on a self-sustaining basis; the Commission is authorized to establish by rule and order that each entity regulated under this Chapter shall be assessed a reasonable fee and charges in accordance with the provisions of this section as are necessary to: (1) underwrite the Commission's operating expenses in compliance with its responsibilities hereunder; and (2) establish a reserve not to exceed an amount equal to its prior year expenditures and obligations or such lesser amount that the Commission deems reasonable to assure continued and efficient operation of the Page 13 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 Commission pursuant to its projected goals and objectives and its expense 2 experience for prior years. 3 (c) Determination of Annual Charges. The maximum amount that the 4 Commission may impose on any single entity annually, beginning with the calendar 5 year January 1, 2007 shall be equal to: 6 ( 1) a pro rata adjusted share of the total amount that the Commission 7 must recover annually for the purposes enumerated in subsection (b), said 8 amounts being determined on the basis of estimated expenses contained in the 9 Commission's budget, multiplied by 1 (2) the gross annual revenues of said entity and divided by 11 (3) the gross annual revenues in the Commonwealth of all entities 12 subject to the Commission's jurisdiction; 13 Provided that the charges to be imposed on any entity under this clause shall 1 not exceed three fourths of one percent (.75%) of its annual gross revenue in the 1 Commonwealth or one hundred thirty-five thousand dollars ($135,000), whichever is 1 less, nor shall the sum of all amounts assessed or collected from all regulated entities 1 pursuant to this chapter in a fiscal year, other than amounts collected under § 8435, 1 exceed the total annual budget of the Commission as appropriated by the legislature. 1 (d) Expenses for specific proceedings with respect to the hiring of specific professional and consultative services for the conduct of investigations, hearings, or any other proceeding carried out in relation with a particular entity, which was not considered or contemplated in determining the annual charges authorized under section (c) herein may be assessed by the Commission in addition to any annual charges imposed under subsection (c ). (e) Prior to seeking judicial review an entity regulated by the Commission shall request reconsideration of any charge imposed by the Commission by: 2 ( 1) making timely payment of the entire amount imposed or posting 2 bond for such charge; and Page 14 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 (2) contemporaneous with said payment, filing a detailed written 2 statement of the reasons why the charges imposed are excessive or illegal in 3 whole or in part. 4 The charge(s) shall be deemed affirmed unless modified by written order of 5 the Commission within sixty (60) days of the filing of a request for reconsideration. 6 The Commission shall not be obligated to reimburse any part of any imposition of 7 charges if it certifies that carrying out said reimbursement would adversely affect the 8 Commission's operations. If the Commission issues said certification, and a court of 9 competent jurisdiction should find that the charge was excessive or illegal at a later 1 date, or the Commission should so find at a later date or upon appeal, then the 11 affected entity shall be entitled to reduce the corresponding amount of the impositions 12 of future charges that the Commission may impose. If any amount assessed against an 13 entity is not paid in accordance with this section within thirty (30) days after the date 1 of issuance, the entity shall pay a penalty to the Commission of two percent of the 1 amount due for each month or fraction thereof that such amount is unpaid. 1 (f) The Commission shall deposit all fees, charges, expenses, and late penalties 1 collected under this section in the Public Utilities Commission Revolving Fund. 1 § 8422. Public Utilities Commission Revolving Fund. A Public Utilities Commission 1 Fund shall be established for the use of the Commission consisting of amounts as may be placed therein pursuant to the provisions this of Chapter. 21 (a) The Department of Finance shall maintain all funds generated under this 2 Chapter in a segregated special account within the general fund identified as "The 2 Public Utilities Commission Revolving Fund." 2 (b) The Commission's budget shall be appropriated by the legislature. 2 (c) These funds shall be allotted, disbursed, expended, spent, obligated or 2 otherwise encumbered as provided in this section, and notwithstanding any other 2 provision of law, they shall not be reprogrammed for any other purpose. 2 (d) Within sixty (60) days of the close of each fiscal year, the Commission 2 shall provide the presiding officers of the legislature with a full and detailed 3 accounting of the use of these funds. The Office of Public Auditor shall perform an Page 15 PUBLIC LAW NO. 1S-3S HOUSE BILL No. 15-55, HS2, HD3, SDl 1 annual audit of the use of these funds and report its findings to the presiding officers 2 of the legislature. These reports and any audits conducted shall be public information. 3 (e) The expenditure authority of all funds appropriated to the Commission 4 shall be the Chairperson of the Commission, or designee. 5 ARTICLE 5. GENERAL DUTIES OF REGULATED ENTITIES. 6 § 8423. Regulated Entities to Furnish Information. Every regulated entity sha11 at all 7 times, upon request, furnish to the Commission an information that it may require respecting 8 any of the matters concerning rates and charges, revenues and expenditures which it is given 9 power to investigate and sha11 permit the examination of its books, records, contracts, maps, 10 and other documents by the Commission or any person authorized by it in writing to make 11 such examination, and shall furnish the Commission a complete inventory of its property in 12 such form as the Commission may direct. 13 (a) Every regulated entity shall furnish the Commission with annual reports 1 containing information to be specified by the Commission as well as copies of all internal financial statements used by the entity on a monthly, quarterly or regular basis as requested by the Commission and reasonably necessary in the performance of the regulatory function of the Commission. (b) The Commission shall require the entities to follow standard accounting procedures, or, in the case of Public Utilities and Telecommunications Companies, the Commission may direct to follow accounting procedures required by the Federal Energy Regulatory Commission ("FERC") or the Federal Communication Commission ("FCC"), respectively.

§ 8424. Rate Publication. All regulated rates, assessment costs, classifications, charges, and rules of every entity shall be published by the entity in such manner as the Commission may require and copies furnished to any person on request. (a) All rates, charges, assessments, and costs made or charged by any entity shall be just and reasonable in conformance with public law, and shall be filed with the Commission; and no rate, charge, or assessment cost shall be established, Page 16 PUBLIC LAW N0.15-35:_ HOUSE BILL No. 15-55, HS2, HD3, SDl l abandoned, modified, departed from, or changed without a public hearing and the 2 prior approval of the Commission. 3 (b) The Commission, upon notice to the regulated entity, may suspend the 4 operation of any proposed rate, charge, or assessment cost, or any proposed 5 abandonment, modification thereof, or departure therefrom, and after a public hearing 6 by order regulate, fix and change all such rates and charges so that the same shall be 7 just and reasonable. 8 § 8425. Compliance. Notwithstanding any other provision of law, no rate or charge 9 for any regulated entity shall become effective without the approval of the Commission. In 10 this respect a regulated entity shall comply with this Chapter in addition to complying with 11 any other condition, contractual obligation, or obligation imposed upon it by law. 12 ARTICLE 6. PENALTIES 13 § 8426. Penalty. Except where otherwise required in this Chapter, any person or 14 entity violating or neglecting or failing in any particular way to conform to or comply with 15 this Chapter or any lawful order of the Commission shall forfeit or pay to the Public Utilities 1 Commission not more than Five Hundred Dollars ($500.00) for every violation, neglect, or 1 failure per day. 1 § 8427. Periury. Any person who willfully and knowingly makes under oath any 1 false statement in connection with any investigation by or proceeding before the Commission shall be guilty of perjury, and upon conviction, shall be subject to the penalty prescribed by law for the offense. ARTICLE 7. GENERAL MISCELLANEOUS PROVISIONS

§ 8428. Application to Interstate or Foreign Commerce. This Chapter and every provision thereof shall apply to commerce with foreign nations or to interstate commerce except insofar as such application is not permitted under the Constitution and laws and treaties of the United States or the Constitution of the Commonwealth of the Northern 2 Mariana Islands. Page 17 PUBLIC LAW BO. 15-35 HOUSE BILL No. 15-55, HS2f HD3, SDI 1 § 8429. Rate Structure and Approval Procedures. 2 (a) No entity shall give preferences or improper or unreasonable advantages of 3 any type related to rates, charges, or rents for services to any person, corporation, or 4 geographic area nor shall it subject any person, corporation, or geographic area to 5 undue prejudices, disadvantages, or discrimination in any other service aspect. 6 (b) (1) Every entity shall present the Commission with a schedule of all 7 rates, rents, and charges it proposes to assess for services of all types between points 8 within the Commonwealth. 9 (2) The rate structure shall clearly set forth the sites between which the 10 services shall be rendered and express separately all the charges, rates, 11 privileges, or facilities granted or permitted and any internal rule or regulation 12 or the terms and conditions of contracts that may in any way change, alter, 13 affect, or determine any rate, rent, or charge or the sum of the rates, rents, or 1 charges for the services rendered. The Commission shall promulgate regulations for maintaining all the information required by this subsection for public inspection. 1 (c) (1) No entity may charge or receive amount of compensation for any 1 service other than the rates, rents and charges specified in the entity's current rate structure on file with the Commission; (2) An entity may reimburse or remit directly or indirectly, in any manner or by any means, any portion of the rates, rents, and charges so specified; and (3) No entity shall grant any person or corporation any contract form or agreement, any rule or regulation, or any facility or privilege except those that are ordinarily and uniformly granted to all persons and corporations.

§ 8430. Methods and Procedures fbr Establishing Rates. Charges and Rents. (a) The Commission shall establish the procedures and methods to be followed in setting and approving rates, charges and rents for entities' services. The methods and procedures may provide for the utilization of: Page 18 PUBLIC LAW BO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl l ( l) price-cap fonnulas that result in rate adjustments based on 2 productivity and exogenous factors such as inflation indices and/or 3 (2) fonnulas based on rate of return. The fonnulas may be utilized to estab1ish 4 flexible prices, i.e., maximum, minimum, or both types of prices. 5 (b) The Commission shall be obligated to revise periodically the effect of the 6 approved fonnulas for fixing rates, evaluating their effect on the entity, including 7 rates of return on its investment, and modifying the factors and other components of 8 said fonnulas on the basis of experience. 9 (c) For the purposes of this subsection, the fonnula based on rate of return IO means the methodology used to approve charges and rates for a service that takes into 11 consideration the public need for adequate, efficient and reasonable service, and the 12 need of the entity to receive sufficient income to cover all current costs for offering 13 said service, including taxes and interest, and including adequate provisions for the 14 depreciation of property needed for rendering said service, and for deriving a fair and 15 reasonable return on the value of their property using as a guide the return of 1 equivalent risk enterprises and reasonable consideration-that the-£-ommission deems 1 pertinent. I (d) The Commission may utilize methods, analytical techniques and I procedures for detennining rates, rents, and charges that are different from those 2 mentioned in this subsection, including forbearance of rate regulation and detariffing, provided it demonstrates in authentic fonn that the chosen method will satisfy the criteria established in this subsection for the rate structure in a more effective way than the methods mentioned herein. (e) No entity may use current revenue earned or expenses incurred in conjunction with services subject to regulation under this Chapter to subsidize services that are not regulated or are not tariffed. Expenses incurred in conjunction with services that are not regulated or that are not tariffed under this Chapter may not be attributed to services that are subject to regulation for any reason. The Commission may not subsidize the price of any entity's service, including wholesale prices or the Page 19 PUBLIC LAW HO. 15-35 HOUSE BILL No. 15-55, HS2? HD3, SDI 1 prices of elements, by reducing the prices to reflect an allocation or credit of revenue 2 from the operations of an affiliated company of the entity. 3 § 8431. Procedure for Implementing or Modifying. Rates. Charges or Rents. The 4 following procedures shall apply when implementing or modifying changes in rates, charges, 5 and rents for an entity's services unless the Commission determines that these should not 6 apply to the formula or procedure established for determining rates, and adopt alternative 7 procedures. 8 (a) Notification. Every regulated entity interested in modifying the rates, 9 charges, or rents applicable to its services shall provide public notice of such proposed 10 modifications at least sixty (60) days prior to the effective date of the proposed 11 changes. The Commission shall provide the form and content of the aforementioned 12 notifications by regulation, provided that the public notification shall at least include 13 the place, date, and time at which the public hearings on the proposed change will 14 take place (which date must not be less than thirty (30) days nor more than thirty-five 15 (35) days from the date of said notification); the rates, charges, or rents in force; the 1 rates, charges, or rents whose adoption is proposed and the justification thereof and 1 the effective date of the proposed changes. For the purpose of this clause, public 1 notification shall include, as a minimum, its publication in one newspaper of general 1 circulation that covers the area affected by the proposed change. (b) Public Hearings. The Commission shall hold public hearings on proposed rate changes when these apply to non-competitive entity services. In cases of competitively-provided services the Commission shall have the discretion to hold such hearings. (c) Access to Documents. The Commission shall place reports or documents supporting or justifying the proposed modifications to rates, charges, or rents at the disposition of the public sufficiently in advance of the date on which the hearings are to be held. In the event that public hearings are not held, the aforementioned information shall be available before the rates, charges, or rents go into effect. (d) Opinion; Report. In the event the public hearing is presided over by an examiner, such examiner shall submit a report to the Commission within such period Page 20 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 of time as the Commission may establish. The report shall include a list of objections, 2 statements, opinions, documents, studies, recommendations, and other pertinent facts 3 introduced in the hearings, together with conclusions and recommendations. Copies of 4 said report shall be available to the public for examination and study. Any interested 5 party may submit written comments in relation to said report within ten (10) days 6 following the date same is made available to the public. Once this term has elapsed, 7 the matter shall be submitted to the Commission, which must make a decision 8 regarding the proposed rate change. 9 {e) Alternate Procedures. Prior to the expiration of the notification periods to 10 the public established in this subsection for rate changes for an entity's services, the 11 Commission may: {1) reject the proposed change in the rates, charges, or rents as 12 clearly illegal or incompatible with any provision or purpose hereof; {2) suspend the 13 effectiveness of said proposal and take such other actions as may be appropriate. It 1 will not be necessary for the Commission to reject or suspend a proposed change in rates, charges, or rents in order to carry out a hearing related to the legality of said 1 proposal.

§ 8432. Suspension o{Proposed Rates, Charges or Rents. 1 {a) After having initiated a hearing to consider a proposed rate change and 1 while said hearing and the decision on same are pending, the Commission may suspend the application of said rate, charge, or rent in full or in part, for a period no longer than five {5) months on and after the time at which it would otherwise have become effective, by delivering a written statement to the affected regulated entity with the reasons for said suspension. {b) After a full hearing, the Commission may issue such orders as may be appropriate in a proceeding initiated after said rate, charge, or rent is in force. If the proceeding has not been concluded and an order has been issued within the suspension period, the proposed rate, charge, or rent, whether new or revised, shall become effective at the end of said period. In the case of a proposed change for a new service or an increase in the charges, the Commission may, by order, require the 3 interested entity to maintain a precise accounting of all the amounts received by Page 21 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, Hs2, HD3, SDl 1 reason of said rates, charges, or rents for new services or increases in rates, charges, 2 or rent, specifying by whom and in benefit of whom said amounts are paid. Once the 3 hearing has concluded and a decision has been issued, the Commission may, by 4 another order, require the affected entity to reimburse with interest the persons in 5 whose representation said amounts were paid, with that portion of said rate, charge, or 6 rent for new service or increase in rates, charges or rents, for which, by determination, 7 the Commission finds no justification. In any hearing in which an already increased or 8 to be increased charge is involved, the weight of the proof demonstrating that said 9 increase in rates, charges, or rents is fair and reasonable shall fall upon the regulated 10 entity. 11 (c) If the Commission determines that conditions require immediate action, it 12 may waive the requirement for a prior hearing and shall make its determinations 13 pursuant to the information in its possession. If the Commission or the reviewing 14 court subsequently determines that the partial or temporary rates fixed by the 15 Commission were not fair and reasonable, it shall permit the affected regulated entity 1 to recover the amount that represents the difference between the gross income 1 obtained by reason of the temporary rates and the gross income it would have 1 obtained, had the finally authorized rates been fixed originally, by means of a 1 temporary increase in the definitive rates. 2 § 8433. Fixing ofJust and Reasonable Rates. Charges and Rents. (a) If, as part of a complaint, or an authorization process for changing rates, 2 charges, or rents, or under an investigation order issued by the Commission at its own initiative, the Commission determines after holding a hearing that any rate, charge or rent of any regulated entity is or shall be in violation of any provisions hereof, incompatible with the purposes hereof, unreasonable or shall offer improper advantages or preferences to said regulated entity, or otherwise endangers the stability of the provision of the entity's services to the Commonwealth, the Commission may determine and fix what the just and reasonable rates, charges, and rents shall be, or the maximum or minimum rates, charges or rents that must be observed. Page 22 PUBLIC LAW NO. 15-35 HOUSE BILL No. 1S-SS, HS2, HD3, SDl 1 (b) The Commission may order a regulated entity to cease and desist from said 2 rates, charges, or rents to the extent that the Commission deems necessary, and may 3 prohibit the entity from publishing, demanding, or charging any rate, charge, or rent 4 that is different from that fixed by the Commission, or in excess of the maximum or 5 less than the minimum, as the case may be. 6 § 8434. Service Outages. The Commission may order a regulated entity to credit or 7 rebate its customers a proportion of such customer's basic service fee if there has been a 8 service outage or a series of service outages and such outage or outages has been determined 9 by the Commission to be unreasonable. The Commission shall promulgate rules and 1 regulations to define an "unreasonable service outage," the fonnula for detennining the 11 amount of credit or rebate, and any other necessary rules and regulations necessary to 12 implement this subsection. 13 § 8435. Complaints to the Commission: Violations and Penalties. I (a) Customer complaints to the Commission regarding the operation of a I regulated entity shall be filed in writing with the Commission. The Commission shall l take up such complaints with the regulated entity, in an effort to bring about the I satisfaction of the complaint without a fonnal hearing. l (b) The Commission shall resolve all complaints, if possible, infonnally. No 1 fonn of infonnal complaint is prescribed, but the writing must contain the essential elements of a complaint, including the name and address of the complainant, the name of the regulated entity against which the complaint is made, a clear and concise statement of the facts involved, and a request for affinnative relief. 2 (c) In the event that the Commission cannot resolve the complaint to the 2 satisfaction of all parties, the complainant may file a fonnal request to the 2 Commission and will be entitled to a hearing. 2 (d) If the Commission determines that any rate, action, omission, rule 2 regulation, classification, or practice of a regulated entity violates any provision 2 hereof or any rule or order of the Commission, then the Commission may: Page 23 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2i HD3, SDI 1 ( 1) order said entity to pay the complainant the damages it caused that 2 are attributable to said rate, act, omission, rule, regulation, classification, or 3 practice, and 4 (2) order said entity to take such actions or desist from carrying out 5 such actions as the Commission may determine are reasonably necessary for 6 desisting from the violation. 7 (e) A regulated entity may be subject to a fine or civil penalty in accordance 8 with this section, upon a determination by the Commission or court that the entity has 9 violated any of the following: 10 (1) The material terms of its certificate of public convenience and 11 necessity; or 12 (2) Substantial compliance with this Chapter or rules or orders 13 prescribed by the Commission. 14 (f) The Commission may impose administrative fines of up to a maximum of 15 twenty-five thousand ($25,000) dollars for each violation hereof. In the case of a 1 continuing violation, each day that transpires shall constitute a separate offense, but 1 the total amount of the fine imposed shall not exceed five hundred thousand 1 ($500,000) dollars. Any penalty assessed under this subsection is in addition to any 1 other costs, expenses or payments for which the regulated entity is responsible under other provisions of this subsection. (g) The Commission may permit, in lieu of a full hearing before the Commission, that one of its hearing examiners conduct hearings and report its findings to the Commission. (h) Where a complaint is found to have been groundless and filed in bad faith by a customer, in whole or in part, the Commission shall assess costs in whole or in part for investigation, defense, and other associated costs, including but not limited to, reasonable attorney fees borne by the regulated entity and the Commission in the review of the complaint to the customer. (i) The Commission shall adopt rules governing the filing of such complaints. Page 24 PUBLIC LAW NO. 15-35 HOUSE BILL No. lS-SS, HS2, HD3, SDI 1 § 8436. Judicial Review. Any person aggrieved by a final Action of the Commission 2 may seek judicial review pursuant to 1 CMC § 9112, et seq. within thirty (30) days of its 3 issuance. Such review shall be limited to questions of law, the record established, and issues 4 raised before the Commission. 5 § 8437. Interim Rules and Regulations. Except as provided herein, the regulations, 6 standards, procedures, and all other such aspects related to the regulation of the functions and 7 operations of the regulated entities that may be in force when this Act becomes effective, 8 shall continue to apply until amended or repealed by the Commission, pursuant hereto. 9 ARTICLE 8. REGULATION OF PUBLIC UTILITIES 10 § 8438. Rates. Charges and Assessments. All rates, charges, assessments, and costs 11 made or charged by any Public Utility shall be just and reasonable and in conformance with 12 publiclaw. 13 (a) The Commission shall regulate all rates, charges, assessments including 14 but not limited to connection fees, reconnection fees, line extension charges, etc. in 15 accordance with the provisions of this Chapter. 1 § 8439. Divestiture of Capital. All Public Utilities shall obtain prior approval of the 1 Commission for the significant divestiture, transference of operations, sale or lease of 1 production or transmittal of electrical, water, or wastewater facilities and/or transmissions 1 systems. (a) Approval of Divestiture is subject to provisional approval of proposed rate structure following divestiture. (b) A significant divestiture, transference of operations, sale or lease of production or transmittal of electrical, water, or waste water facilities and/or transmissions systems is that which may modify or change the rate structure being charged to the customer.

§ 8440. Expansion of Production Facilities. All Public Utilities must obtain prior approval of the Commission for the significant purchase of capital for the production or transmission of electricity, water, or treatment of wastewater. Page 25 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 (a) Approval of purchase is subject to preliminary approval of proposed rate 2 structure following divestiture. 3 (b) A significant purchase of capital for the production of electricity, water, or 4 treatment of wastewater is that purchase which may cause a modification or change in 5 the rate structure being charged to the customer. 6 § 8441. Certification ofPublic Utility Companies. 7 (a) (1) Certification Required. Any public utility company interested in 8 providing or operating a service in the Commonwealth shall request, obtain, and 9 maintain a valid certificate of public convenience and necessity from the Commission 10 except as provided for in subsection (d) of this section. 11 (2) The Commission shall grant certification to a public utility 12 company if it determines that, aside from complying with the established 13 criteria, certification is consistent with the public interest. When Acting upon a 1 request, the Commission may grant certification in full or in part and may impose such conditions and terms as it determines to be reasonably necessary for achieving the purposes hereof. (b) Modifications, Suspensions, and Revocations. A certification granted by the Commission pursuant to provisions of this article may be modified, suspended, or revoked by the Commission for just cause after notice and opportunity for hearing. (c) Authorization for Discontinuation or Cessation ofServices. (1) No public utility company may discontinue, reduce, or diminish its provision of services unless it requests and obtains a valid authorization from the Commission for said discontinuation, reduction, or diminishment. (2) The Commission shall adopt regulations specifying the form, content, procedure, and criteria for filing requests for such authorizations and for providing the public with the opportunity to express itself thereon. Said procedure shall, without it being understood as a limitation, include the publication of notices notifying the public about said requests. When acting upon requests for discontinuation, cessation, reduction, or diminishment of a service, the Commission shall consider the reasons on which the request is Page26 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 based together with the consequences of a social nature and public interest that 2 may result from its decision. The Commission may grant or deny the request 3 in full or in part, or impose such conditions on every total or partial 4 authorization as it deems reasonably necessary for achieving the purposes 5 hereof. 6 (d) Existing Franchises. The Commonwealth Utilities Corporation shall not 7 be required to obtain a certificate of public convenience and necessity from the 8 Commission. Nor, while as a government entity, shall the Commonwealth Utilities 9 Corporation be subject to§ 8421 of this chapter. In the event that the Commonwealth 10 Utilities Corporation privatizes its power, water, or sewer division, the private 11 company or contractor that operates the power, water, or sewer division shall be 12 required to obtain a certificate of public convenience and necessity from the 13 Commission and be subject to§ 8421 of this chapter. ARTICLE 9. REGULATION OF TELECOMMUNICATIONS

§ 8442. Additional Definitions. The following additional definitions apply to this article: (a) •Federal Communications Act of 1934' means the Federal Communications Act of 1934,47 U.S.C. 151 et seq., as amended, which includes the Federal Telecommunications Act of 1996; (b) •Gross Revenue ' or •revenues ' means the gross revenue from telecommunications services that originate or terminate in the Commonwealth and are billed for a service address in the Commonwealth, excluding revenue from the resale of telecommunications services to another telecommunications service provider that uses the telecommunications services to provide telecommunications services to the ultimate retail customer who originates or terminates the transmission.

§ 8443. Transfers and Capitalization. (a) Transfers. Franchises, certificates of public convenience and necessity, substantial assets as defined by regulation, and certificates of capital stock of a telecommunications company, as well as direct or indirect control of a person or Page 27 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 corporation possessing the same, may not be sold, assigned, transferred, mortgaged, 2 or otherwise encumbered without the prior consent of the Commission. The 3 Commission shall adopt regulations that specify the form, content and procedures for 4 filing the pertinent requests and for giving the public the opportunity to express its 5 viewpoints. This subsection shall not be interpreted to the effect that it impedes the 6 sale, encumbrance, or disposal of property that is not necessary or useful for the 7 rendering of telecommunications services by any telecommunications company. 8 (b) Capitalization. The Commission shall establish the minimum capital 9 requirements that each telecommunications company must satisfy. When establishing 10 said requirements, the Commission may take into account the capitalization of any 11 entity that may have an interest in the telecommunications company. The Commission 12 shall also have authority to adopt rules related to mortgages, encumbrances, and other 13 liabilities on the stock and assets of the telecommunications company, including rules 14 requiring the prior approval of the Commission to carry out financial transactions, 15 such as security contracts, mortgages, or any other type of encumbrance or liability. 16 Any transaction of any type that results in a violation of the provisions of subsections 17 (a) and (b ), above, or the rules that the Commission may adopt by virtue thereof shall 18 be null and void. 1 § 8444. Compliance: Standards o{Service and Facilities. 2 (a) General Standard. Every telecommunications company shall supply and maintain adequate and efficient telecommunications services, where economically feasible, on all Commonwealth islands. Unjust or unreasonable discriminations in rendering telecommunications services are prohibited. Every telecommunications company shall adopt and present to the Commission the quality criteria it will utilize to achieve the aforementioned standards and objectives. (b) Quality Criteria. For local telecommunications services, such criteria shall include, but without being limited to, the following: (I) installation and repair of facilities; (2) management of ca11s by operators; (3) completed calls; Page 28 PUBLIC LAV NO. 15-35 HOUSE BILL No. 15-SS, HS2, HD3, SDl 1 (4) transmission and noise; 2 (5) suspension of service for failure to pay; 3 (6) invoices to customers and disputes on invoicing; and 4 (7) interruptions in the service. 5 For local telecommunications services, the standards adopted by the 6 Commission shall ensure that such services are provided to all customers on all 7 Commonwealth islands where technically feasible and at the lowest possible cost in 8 keeping with good service. 9 (c) Specification of Services and Facilities. If it is determined that such is 10 reasonably necessary to achieve the purposes hereof, the Commission shall have the 11 authority to require the telecommunications company to carry out the repairs, 12 changes, alterations, additions, extensions, and improvements needed to achieve the 13 quality standards and objectives. 14 § 8445. Insurance. The Commission shall have the authority to require 15 telecommunications companies to insure for such amounts and against such risks as the 16 Commission determines to be reasonably necessary to guarantee the payment by said 17 companies or their directors, officials, employees, agents, or contractors that is otherwise 18 deemed necessary for complying with the purposes hereof. To this effect the Commission 1 may require them to acquire insurance policies and/or bonds that demonstrate their capacity 2 to assume the financial loss associated with such risks, through self-insurance or any other mechanism acceptable to the Commission. 2 § 8446. Forbearance ofRate Regulation to Facilitate Competition. 2 (a) In accordance with the provisions of this section, the Commission shall 2 forbear regulation as to rates, tariffs, fares, or charges to facilitate competition and 2 shall authorize the provision of all or any portion of regulated telecommunications 2 service under stated or negotiated terms to any person or entity that has acquired or is contemplating acquisition of, through construction, lease, or any other form of acquisition similar telecommunications service from an alternate source. (b) At any time, the provider of regulated telecommunications service may file a verified application with the Commission for forbearance of regulation to facilitate Page 29 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 competition. The application must describe the telecommunications service to be 2 offered, the customer to be served, and the party or parties offering similar service, 3 together with other information and in a form that the Commission may prescribe. 4 The additional information must be reasonably related to the determination of the 5 existence of an alternative offer but may not require information relating to the cost of 6 providing the service. 7 (c) The Commission shall approve or deny an application for forbearance of 8 regulation to facilitate competition within thirty (30) days after the filing of the 9 application. If the Commission has not acted on an application within the permitted time period, the application is considered granted. The Commission shall deny the application only upon a finding that the application is incomplete or that the subject or similar service is not being offered to the customer by parties other than the applicant. If a customer or potential customer of the provider seeking forbearance requests a quotation of prices from another provider of telecommunications service having tariffs or price lists for similar services on file with the Commission, the Commission may presume the existence of competition. (d) Upon approval of the application, the provider of telecommunications service may negotiate with a person or an entity for the provision of the service without regard to its tariffs or price lists on file with the Commission. (e) Within ten (10) days after the conclusion of the negotiations, the provider of regulated telecommunications service shall file with the Commission the final contract or other evidence of the service to be provided, together with the charges and other conditions of the service. Thereafter, for the term of the contract, the provider of regulated telecommunications service may provide the service to the customer without regard to its tariffs or price lists on file with the Commission. (f) Services provided pursuant to subsection (a) remain subject to the regulatory powers of the Commission.

§ 8447. Duty to Interconnect. ( a) The purpose of this section is to implement specific provisions of the Federal Telecommunications Act of 1996, Public Law 104-104. Page 30 PUBLIC LAW NO. 15-35 HOUSE BILL No. 1S-SS, HS2 HD3, SDl 1 I (b) (I) Each telecommunications carrier shall perform the duties 2 enumerated in 47 U.S.C. 25l(a). 3 (2) Each local exchange carrier shall perform the duties enumerated in 4 47 U.S.C. 251(b). 5 (3) In addition to the duties provided for in subsection (b) (2), each 6 local exchange carrier shall perform the duties enumerated in 47 U.S.C. 7 251(c). 8 § 8448. Voluntary Negotiation of Interconnection Agreements. Upon receiving a 9 request for interconnection, services, or network elements, an incumbent local exchange 10 carrier may negotiate and enter into a binding agreement with the requesting 11 telecommunications carrier or carriers. The agreement must include a detailed schedule of 12 itemized charges for interconnection and each service or network element included in the 13 agreement. 14 § 8449. Mediation of Interconnection Agreements. Upon the written request of any 15 party negotiating an agreement for interconnection with another telecommunications carrier, 1 the Commission may designate a mediator, who may be a Commission member, to mediate 1 any differences arising in the course of the negotiation. 1 § 8450. Arbitration oflnterconnection Issues. 1 (a) The Commission has the authority to arbitrate any open interconnection 2 issues pursuant to 47 U.S.C. 252(b), as it existed on February 8, 1996. (b) During the period from the 135th to the 160th day, inclusive, after the date on which an incumbent local exchange carrier receives a request for negotiation, the carrier or any other party to the negotiation may petition the Commission to arbitrate any open issues. A party that petitions the Commission under this section shall, at the same time as it submits the petition, provide the Commission with all relevant documentation concerning the following: (1) the unresolved issues; (2) the position of each of the parties with respect to those issues; and (3) any other issue discussed and resolved by the parties. Page 31 PUBLIC LAW HO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDI 1 (c) A party petitioning the Commission under this section shall provide a copy 2 of the petition and any documentation to the other party or parties not later than the 3 day on which the Commission receives the petition. 4 (d) A nonpetitioning party to a negotiation may respond to the other party's 5 petition and provide any additional information that it wishes within 15 days after the 6 Commission receives the petition. 7 (e) The Commission shall limit its consideration to those issues set forth by 8 the parties to the negotiation in the petition for arbitration and the response to the 9 petition. 10 (f) The Commission may appoint a hearing examiner for arbitration 11 proceedings under this section. The hearing examiner shall file with the Commission 12 a proposed decision within the time set by order of the Commission. A hearing 13 examiner must be assigned with regard to the expertise required for the particular 1 matter. On the filing by a party, in good faith, of a timely and sufficient affidavit of personal bias, lack of independence, disqualification by law, or other disqualification of a hearing examiner or on the hearing examiner's own motion, the Commission shall determine the affidavit or motion as a part of the record in the case. The Commission may disqualify the hearing examiner and appoint another hearing examiner. The affidavit must state the facts and the reasons for the belief that the hearing examiner should be disqualified and must be filed not less than ten (10) days before the original date set for the hearing. (g) Participation in the arbitration proceeding must be limited to the telecommunications carrier requesting the arbitration, the telecommunications carrier from which interconnection is being sought, and the Commonwealth consumer counsel. (h) Negotiations among the telecommunications carriers may continue, (i) Unless otherwise agreed to by the parties, the Commission shall, within 10 days of the filing of a request for arbitration, conduct a conference with the parties for the purpose of establishing a schedule for the orderly and timely disposition of the arbitration. The schedule must include discovery deadlines and a hearing date. Page 32 PUBLIC LAW RO. 15-35 HOUSE BILL No. lS-55, HS2, HDJ, SDl 1 (j) The Commission may issue subpoenas for the attendance of witnesses and 2 the production of books, records, documents, and other evidence relevant to the issues 3 being arbitrated and may administer oaths. Subpoenas must be served and enforced in 4 the manner provided by law for the service and enforcement of subpoenas in a civil 5 Action in Superior Court. The Commission shall regulate the course of the hearings 6 and the need for filing briefs and may direct the parties to appear and confer to 7 consider simplification of the issues by consent of the parties pending a final decision 8 by the arbitrator. 9 (k) The Commission shall issue its final decision no later than six (6) months 10 after the request for negotiations on a petition issued. When the Commission files its 11 final decision or when the hearing examiner files the proposed decision with the 12 Commission, each party must be simultaneously given a copy delivered personally or 13 by certified mail. The decision must: 14 (1) ensure the resolution of issues presented by the parties and this 15 section; I (2) establish rates for interconnection, services, or access to unbundled network elements pursuant to 47 U.S.C. 252(d); and 1 (3) provide a schedule for implementation of the terms and conditions 1 of the decision by the parties. (l) If the person who conducted the hearing becomes unavailable to the Commission, the Commission is not precluded from issuing a final decision based on the record if the demeanor of the witnesses is considered immaterial by all parties. (m) Unless required for the disposition of ex parte matters authorized by law, the person or persons who are charged with the duty of rendering a decision or of making findings of fact and conclusions of law in an arbitration proceeding, after issuance of notice of hearing, may not communicate with any party or a party's representative in connection with any issue of fact or law in the case unless there is notice and opportunity for all parties to participate. Page 33 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 § 8451. Approval ofArbitration Decision. 2 (a) If the Commission has not approved or rejected in its entirety an agreement 3 adopted by arbitration within thirty (30) days of submission by the parties, the 4 agreement is considered approved. 5 (b) The Commission may reject the agreement only if the Commission finds 6 that the agreement does not meet the requirements of 47 U.S.C. 251 and the 7 regulations prescribed to implement that section by the FCC or the standards set forth 8 in 47 U.S.C. 252(d). Upon rejection of an agreement, the Commission shall provide 9 the parties with written findings as to any deficiencies. 10 § 8452. Approval oflnterconnection Agreements. 11 (a) Within thirty (30) days of filing of an interconnection agreement adopted 12 by negotiation of the parties to an agreement, the Commission shall approve or reject 13 the agreement, or the agreement is considered approved. 1 (b) The Commission may reject an agreement filed under this section only if the Commission finds that: ( 1) the agreement or a portion of the agreement discriminates against a telecommunications carrier not a party to the agreement; or (2) the implementation of the agreement or a portion thereof is not consistent with the public interest, convenience, and necessity. (c) Upon rejecting an agreement filed under this section, the Commission shall issue written findings detailing any deficiencies in the agreement.

§ 8453. Determination g.f.Eligible Ca"ier Status - Universal Service Support. (a) The Commission is authorized to designate telecommunications carriers as eligible for Federal Universal Service support, in accordance with 47 U.S.C. 214(e)(l) and 47 U.S.C. 254, and for any CNMI universal service funds. This authorization applies to all telecommunications carriers notwithstanding the carrier exemption from further regulation by the Commission. (b) Upon the petition of a telecommunications carrier, or upon its own motion, the Commission shall designate a telecommunications carrier that meets the 3 requirements of 47 U.S.C. 214(e)(l) as an eligible telecommunications carrier for a Page 34 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 service area designated by the Commission. In the case of an area served by a rural 2 telephone company, the term "service area" means the company "study area" for 3 Federal Universal Service support unless the FCC establishes a different definition of 4 service area for the company. The term "service area" for all other 5 telecommunications carriers means a geographic area such as a census block or grid 6 block as established by the Commission for the purpose of determining federal 7 universal service obligations and support mechanisms. 8 (c) Upon receiving a petition from a telecommunications carrier and consistent 9 with the public interest, convenience, and necessity, the Commission may, in the case 10 of an area served by a rural telephone company, and shall, in the case of all other 11 areas, designate more than one telecommunications carrier for a service area, so long 12 as each additional requesting telecommunications carrier meets the requirements of 13 47 U.S.C. 214(e)(l). Before designating an additional eligible telecommunications 14 carrier for an area served by a rural telephone company, the Commission shall find 15 that the designation is in the public interest. 1 (d) If no telecommunications carrier will provide the services that are 1 supported by universal service support mechanisms under 47 U.S.C. 254(c) to all or a part of an unserved community that requests service, the Commission shall determine 1 which telecommunications carrier is best able to provide the service to the requesting unserved community. Any telecommunications carrier ordered to provide service under this section shall meet the requirements of 47 U.S.C. 214(e)(l) and must be designated as an eligible telecommunications carrier for that community or the unserved portion of the community. (e) The Commission shall permit an eligible telecommunications carrier to relinquish its designation as an eligible carrier in any area served by more than one eligible telecommunications carrier. An eligible telecommunications carrier that seeks to relinquish its eligible telecommunications carrier designation for an area served by more than one eligible telecommunications carrier shall give advance notice to the Commission of the relinquishment. Prior to permitting a telecommunications carrier designated as an eligible telecommunications carrier to cease providing universal Page 35 PUBLIC LAV NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 service in an area served by more than one eligible telecommunications carrier, the 2 Commission shall require the remaining eligible telecommunications carrier to ensure 3 that all customers served by the relinquishing carrier will continue to be served and 4 shall require sufficient notice to permit the purchase or construction of adequate 5 facilities by any remaining eligible telecommunications carrier. The Commission shall 6 establish a time, not to exceed one (1) year after the Commission approves 7 relinquishment under this section, within which the purchase or construction must be 8 completed. 9 § 8454. Discounts for Schools. Libraries. Youth Learning Centers and Health Care 10 Providers. The Commission is authorized to establish intra-Commonwealth discounts to 11 schools, libraries, youth learning centers and health care providers and to perform 12 administrative functions necessary as a condition of Federal Universal service support if the 13 discounts are recovered through the Federal Universal Service fund. 14 § 8455. Additional Duties as to Telecommunication. With respect to 15 telecommunication companies, the Commission shall: 1 (a) Ensure that there shall be no discrimination in services (including the 1 types, quality or pricing of services offered) by reason of location, race, sex, origin, 1 religion, or political affiliation; 1 (b) Ensure that no user's service shall be disconnected without just cause and only following adequate notification; (c) Ensure that telecommunication companies have established standard operating procedures to ensure that service outages or interruptions of service, as are inevitable, be corrected as quickly as possible; (d) Ensure that telecommunication companies have established standard operating procedures to ensure that any dispute on invoices be processed equitably and diligently. The Commission shall encourage the informal solution of controversies; (e) Issue, renew, or revoke certificates of public convenience and necessity for the provision of telecommunications services. Page 36 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SD 1 1 § 8456. Regulations. The Commission shall coordinate with the Federal 2 Communication Commission (FCC) to adopt specific regulations for its designated 3 telecommunication service providers to preserve and advance universal service, contribute on 4 an equitable and nondiscriminatory basis to universal fund to promote universal service in the 5 Commonwealth. 6 (a) All rules and regulations promulgated under this article shall conform with 7 the regulation of the telecommunication services as dictated by applicable federal 8 statutes, including but not limited to the Federal Communications Act of 1934. 9 § 8457. Certification o{Telecommunication Companies. lO (a) (1). Certification Required. Any telecommunications company 11 interested in providing or operating a telecommunications service in the 12 Commonwealth shall request, obtain, and maintain a valid certificate of public 13 convenience and necessity from the Commission. Certification is not required for any 14 telecommunications company interested in providing or operating an information 15 service, as that term is defined in the Federal Communications Act of 1934. 16 (2) The Commission shall grant certification to a telecommunications 17 company if it determines that, aside from complying with the established 18 criteria, certification is consistent with the public interest. When Acting upon a 1 request, the Commission may grant certification in full or in part and may impose such conditions and terms as it determines to be reasonably necessary for achieving the purposes hereof. (b) Modifications, Suspensions, and Revocations. A certification granted by 2 the Commission pursuant to provisions of this article may be modified, suspended, or revoked by the Commission for just cause after notice and opportunity for hearing. (c) Authorization for Discontinuation or Cessation ofServices. (1) No telecommunications company may discontinue, reduce, or diminish its provision of telecommunications services unless it requests and obtains a valid authorization from the Commission for said discontinuation, reduction, or diminishment. Page 37 PUBLIC LAW HO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDI 1 (2) The Commission shall adopt regulations specifying the form, 2 content, procedure, and criteria for filing requests for such authorizations and 3 for providing the public with the opportunity to express itself thereon. Said 4 procedure shall, without its being understood as a limitation, include the 5 publication of notices notifying the public about said requests. When acting 6 upon requests for discontinuation, cessation, reduction, or diminishment of a 7 telecommunications service, the Commission shall consider the reasons on 8 which the request is based together with the consequences of a social nature 9 and public interest that may result from its decision. The Commission may 10 grant or deny the request in full or in part, or impose such conditions on every 11 total or partial authorization as it deems reasonably necessary for achieving 12 the purposes hereof. 13 (d) Registration of Interstate and International Communications Companies. 1 Any telecommunications company that provides interstate or international 1 telecommunications services between the Commonwealth and other places outside the 1 Commonwealth shall file all authorizations granted by the Federal Communications 1 Commission to provide said service with the Commission within thirty (30) days 1 following the commencement of said service, or a certified statement from the Federal 1 Communications Commission that said authorization is not required. It shall also file the name, address, and telephone number of the person to whom complaints about such services must be directed. (e) Existing Franchises. Any existing telecommunications franchise that has obtained a valid certificate of public convenience and necessity from the Commonwealth Telecommunications Commission shall continue in full force and effect unless expressly changed, repealed or abrogated by legislation or act of the Commission. The Commission shall make such administrative changes as are necessary to conform these to the Commission's practices and procedures. Page 38 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-SS, HS2, HD3, SDl 1 ARTICLE 10. REGULATION OF CABLE TELEVISION 2 § 8458. Regulation of Cable Television. The Legislature finds that currently the only 3 means of direct public local television coverage services is through cable television. It further 4 finds that need for adequate access to quality cable television services is in the best interest of 5 the public, and of necessity for the education of the community. Cable television companies 6 shall therefore be regulated in accordance with the requirements of applicable federal laws. 7 § 8459. Rates. Charges. and Assessments. 8 (a) All rates, charges, assessments, and costs made or charged by any cable 9 television shall be just and reasonable and in confonnance with federal law. 10 (b) The Commission shall regulate rates, charges, assessments, including but 11 not limited to, connection fees, reconnection fees, line extension charges, etc. in 12 accordance with federal laws. 13 § 8460. An entity subject to and in compliance with this article as detennined by the 1 PUC shall be exempt from § 8421 of this chapter; provided that, in order to qualify for and 1 maintain this exemption, the entity at all times shall provide, operate and make available one 1 television channel dedicated to local progr;imming for a period of at least 12 hours per day, 1 free of charge to its cable television customers. No cost shall be charged against any person 1 for the sponsorship, transmission or dissemination of a program whose content or production 1 is directly or substantially paid for or supported by public funds. An entity who fails to maintain its qualification for exemption under this subsection for more than 60 consecutive days shall be barred permanently from obtaining such exemption.

§ 8461. Rule Making. The Commission shall promulgate rules and regulations necessary to implement the provisions of this Act."

Section 3. CTC aad CUC: Coaforming A1ttnd,mgts. (a) Commonwealth Telecommunications Commission. ( 1) Upon the effective date of this act, the Commonwealth Telecommunications Commission (CTC) is hereby abolished and replaced by the Commonwealth Public Utilities Commission (PUC) with respect to regulatory authority and oversight jurisdiction over all telecommunication utility matters. The PUC will exercise jurisdiction over such matters in Page 39 PUBLIC LAW NO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDI 1 accordance with this act and the rules and regulations promulgated by the PUC 2 hereafter, pursuant to the provisions of this act. 3 (2) The various conditions and requirements previously imposed on 4 Pacific Telecom, Inc., (PTI), and the Micronesian Telecommunications 5 Corporation (MTC) by the CTC in its decision and order in CTC Case No. 6 03-01 are hereby vacated and set aside, except the following: 7 (A) the CTC approval of the transfer of ownership of MTC 8 from Verizon to PTI shall remain and shall continue to be valid; 9 (B) the certificate of public convenience and necessity issued 10 by the CTC in favor of PTI and MTC in 2005 shall also remain valid 11 and effective; and 12 (C) the condition of the decision and order of the CTC 13 prohibiting PTI and MTC from imposing any inter-island toll charge 14 between the islands of Saipan, Rota, and Tinian shall remain effective 15 and shall continue unchanged. 1 In the event that there is good cause shown for the re-imposition of any 1 of the conditions or requirements previously imposed by the CTC, then and 1 only in the event shall the PUC begin a new process of holding a hearing with 1 all the necessary procedural safeguards in place to ensure that a fair hearing is accorded both the telecommunications company affected and the interested party having standing to make such assertion before the PUC. (3) The PUC shall have the authority to promulgate all necessary rules and regulations needed to carry out its mandate under this act; and shall not be bound the rules and regulations of the CTC which are hereby vacated and set aside. (4) Any unexpended balance of moneys and any fees or other moneys now owing to the CTC shall be and the same are hereby transferred and assigned over to the PUC hereby created, to be used and disposed of, as provided by law. Page 40 PUBLIC LAW NO. 15-35 HOUSE BILL No.15-55, HS2, HD3, SDl 1 (5) Except as otherwise provided by law, the regulations, standards, 2 procedures, franchises and all other such aspects related to the regulation of 3 the functions and operation of a regulated telecommunications utility that are 4 in force when this Act becomes effective, shall continue to apply until 5 amended or repealed by PUC. 6 (6) Upon the effective date of this act, all the members of the CTC 7 holding office shall immediately cease to be commissioners. Within 30 days 8 after the effective date of this act, the governor shall appoint new members to 9 the PUC in accordance to § 8403 of Section 2 of this act. 10 (b) Commonwealth Utilities Corporation. 11 (1) When a provision of this Commonwealth PUC Act conflicts with a • 12 provision of the Commonwealth Utilities Corporation Act, Public Law 4-4 7, 13 as amended, 4 CMC §§ 8111 et seq., the provision of this Commonwealth 14 PUC Act shall control. 15 (2) For regulatory purposes, including the setting of rates, the approval 1 of prices fees, charges, terms and services, and the resolution of disputes between a regulated utility and its customers, the PUC is the successor to the 1 Commonwealth Utilities Corporation Board (CUC), and all such Orders, 1 decisions, rules, regulations, certificates, guidelines, practices and regulatory procedures of the CUC shall continue in full force and effect. (3) Except as otherwise provided herein, the regulations, standards, procedures, franchises and all other such aspects related to the regulation of the functions and operation of a regulated power, water, wastewater or cable television regulated utility that are in force when this Act becomes effective, shall continue to apply until amended or repealed by PUC. (4) Notwithstanding § (1) of this section or any law to the contrary, 4 CMC § 8122, as amended by Executive Order No. 2006-4, is amended further as follows: Page 41 PUBLIC LAW BO. 15-35 HOUSE BILL No. 15-55, HS2, HD3, SDl 1 (A) § 8122(a) is amended to read: 2 "The Commonwealth Utilities Corporation shall 3 supervise and bear the cost of construction, maintenance, 4 operations, and regulation of power, sewage, and water utility 5 services; provided, that whenever feasible the corporation shall 6 contract for private business to assume its duties with respect to 7 one or more of its functions. Construction, maintenance and 8 operations of power, sewage and water utility services includes 9 the corporation's capacity to extend, expand and make utility 10 services uniformly available to all consumers. 11 (B) A new subsection (c) is added to§ 8122 to read: 12 "(c) After the board makes a final decision to privatize 13 or transfer ownership, control, management or operation, in 1 whole or in part, of a utility pursuant to this chapter: (1) the executive director shall submit a proposed, public notice to request for proposals stating the decision and intention of the board, the purpose of the request, preMqualification criteria of prospective and soliciting sealed proposals from interested, qualified parties, to the Public Utilities Commission (PUC) for review and approval. Upon approval by the PUC, the executive director shall cause the public notice to be published in accordance with law or regulation providing for publication of such notices. (2) A private, business entity that is licensed m the Commonwealth and, for at least ten years, has been engaged in business that is closely related to the utility for which the request for proposal is being published pursuant to subsection ( 1), is hereby deemed qualified to submit a sealed proposal. This subsection shall not Page42 PUBLIC LAV BO. 15-35 HOUSE BILL No. lS-55, HS2, HD3, SDl l be construed to preclude entities who are not pre• 2 qualified to submit a sealed proposal pursuant to this 3 subsection." 4 Section 4. Severability. 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 S. 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 IO repealed or under any rule, regulation or order adopted under the statutes. Repealers 11 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. 15 Section 6. Effective Date. This Act shall take effect upon its approval by the I Governor or becoming law without such approval. ATTESTED TO BY: ~ on thb~~yof eobk , 2006 ~,t=~ ACTIBG GOVERNOR COMMONWEALTI-I OF THE NORTHERN MARIANA ISLANDS Page43