Minn Bentt' Na Liheslnt11 ran Guiihan - Legislature of Guam Reports/Bill No. 68... · 2017-04-06 · I M i n a ' B e 11 t e N u e b e N a L i It e s I a t tt r a 11 G 11 a h a 11

I M i n a ' B e 11 t e N u e b e N a L i It e s I a t tt r a 11 G 11 a h a 11

TWENTY-NI NTH GUAM LEG ISLATUR E

Senator Edward J.B . Calvo VICE SPEAKER

Chairman, Committee on Finance, Taxation, Commerce & Economic Development Office of Finance and Budget

August 14, 2007

The Honorable Mark Forbes Speaker Minn Bentt' N11el1e Na Liheslnt11ran Guiihan 155 Hesler Street Hngiittla, GU 96910

Ht?fn Adai Mr. Speaker:

The Committee on Finance, Taxation, Commerce, and Economic Development to whid1 Bill No. 68 (EC): "An Act to Authorize the Issuance of Valuable Certificates to COLA Claimants Awaiting Payment, by Adding a New Subsection (6404) d to Title 5 Guam Code Annotated, Relative to Budgeting for Claims, to be known as the HCOLA Relief Act'', was referred, wishes to report recommend TO PASS Bill No. 68 (ED), as substituted by the Committee on Finance, Taxation, Commerce and Economic Development.

ll1e voting record for Bill No. 68 (EC) is as follows:

TO PASS

NOTTO PASS

TO REPORT OUT

ABSTAIN

\I I

TO PLACE IN INACTIVE FILE

155 Hesler Place • Hagiitiia, GU 96910 • Tel: (671) 475-8801/02 • Fax: (671) 475-8805 Email: [email protected] •Website: www.senatoreddiebazacalvo.com

I Mi11a'Be11te Nttebe Na Liheslat1tra11 Gtttih1111 TWENTY -N INTH GUAM LEG I SLATUR E

Senator Edward J . B . Calvo VICE SPEAKER

Chairman, Committee on Finance, Taxation, Commerce & Economic Development Office of Finance and Budget

August 14 2007

MEMORANDUM

To: Committee Members

From: 01airman, Committee on Finance, Taxation, Commerce and Economic Development

Subject: Committee Action on Bill No. 68 (EC) as substituted by the Committee on Finance, Taxation, Commerce and Economic Development

The following is attached for your review and appropriate action:

1. Committee voting sheet 2. Public Hearing Sign In Sheet 3. Notice of Public Hearing 4. Testimonies submitted

Copies of a ttached pertinent documents for your review. Si Yu 'os Ma'ase' for your attention.

-4 / ED~{~Al.VO

155 Hesler Place • Hagatiia, GU %910 •Tel: (671) 475-8801/02 •Fax: (671) 475-8805 Email: sencal [email protected] • Website: www.senatoreddiebazacalvo.com

I MINA' BENTE NUEBE NA LIHESLATURAN GllAHAN

Committee Voting Sheet Committee on Finance, Taxation, Commerce, and Economic Development

Senadot Edward J.B. Calvo, Ge'Hilo '

Bill No. 68 (EC): "An Act to Authorize the Issuance of Valuable Certificates to COLA Claimants Awaiting Payment, by Adding a New Subsection (6404)d to Title 5 Guam Code Annotated, Relative to Budgeting for Claims, to be known as the "COLA RELIEF ACT," TO PASS Bill No. 68 (EC) , as substituted by the Committee on Finance, Taxation, Commerce nnd Economic Development ..

Committee Members

Scmuor Edward J .B. Calvo Chair~rson

' , .: ,f

Senator Je~"A. Lujan Vice Chairpers(

l,,, Senator Antonio It Unpingco Mcmher ·

Senator Tina Rose Muna-Barnes

Senator Judith T. Won Pat. Ed. D. Memht:r

155 Hesler Street Hagatfla, Guam 96910

~ot.,Pass

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---

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z

Report Out Abstain Inactive File

Phone: (671) 475-8801 /2 Fax: (671) 475-8805

11.

12.

13.

.Committee on Finance, Taxation, Commerce and Economic Development Senator Edward J . B. Calvo, Chairman

Confirmation Hearing: Friday, July 6, 2007 • 10:00 a.m. I Liheslaturan Gulilian, Hagahia

Witness Sign-in sheet

Bill No. 68 (EC): "An Act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404( d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

NAME AGENCY/ ORAL WRITTEN IN NOT IN CONTACT P lease rint ORGANIZATION TESTIMONY TESTIMONY FAVOR FAVOR NUMBER

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I MINA' BENTE NUEBE NA LIHESLATURAN GUAHAN 2007 (FIRST) Regular Session

Bill No. 68 (EC)

Introduced by: J.A. Lujan¥ Edward J.B. Calvo~

AN ACT TO AUTHORIZE THE ISSUANCE OF VALUABLE CERTIFICATES TO COLA CLAIMANTS AWAITING PAYMENT, BY ADDING A NEW SUBSECTION 6404(d) TO TITLE 5 GUAM CODE ANNOTATED, RELATIVE TO BUDGETING FOR CLAIMS, TO BE KNOWN AS THE 11COLA RELIEF ACT".

BE IT ENACTED BY THE PEOPLE OF GUAM:

2 Section 1. Legislative Intent. The government of Guam is obligated to pay a

3 court-ordered settlement to each member of the successful class of claimants in

4 Rios v. Camacho, Superior Court Case No. SP0206-93. Without sufficient

5 revenues from which to make an appropriation, or borrowing authority to

6 finance this obligation, the government should approve a creative way to convey

7 the value of the settlement for use by claimants without delay. This Act

8 authorizes issuance of a document stating the settlement amount due each

9 claimant, which can be used as evidence of financial asset to secure loans, pay

10 taxes, sold for cash, or otherwise conveyed in an open market for current use.

11 Section 2. A new Subsection (d) is added to §6404 of Title 5 Guam Code

12 Annotated, relative to Budgeting for Claims, to read as foliows:

1 "(d) Certificates authorized for COLA settlement. To expedite interim

2 payment to COLA claimants in Rios v. Camacho, Superior Court Case No.

3 SP0206-93, the Department of Administration shall issue to claimants within five

4 (5) working days a serial certificate stating the amount due the claimant,

5 excluding attorney's fees and cost, except for the attorneys in the action who may

6 request a certificate for up to 50% of what is owed to them, but including terms

7 that would affect the value of the claim over time, such as interest and

8 confirmation that upon payment of the amount owed to the claimant it shall be

9 free of any taxes or liens owed to the government of Guam by the claimant or

10 any successor in interest to the claimant. The Department of Administration shall

11 enscribe on the certificates only those names of claimants and corresponding

12 amounts provided by the Guam Retirement Fund, net of attorney's fees and

13 costs, and shall retain a listing of certificates issued. Such certificates, once issued,

14 are evidence of such amounts payable by the government of Guam, to be

15 redeemed by bearer at a later date. Certificates may be transferred or assigned to

16 a thir4 party. Any successor in interest of claimant shall stand in the same shoes

17 as the claimant when the order of payment and funds are disbursed in Rios v.

18 Camacho, Superior Court Case No. SP0206-93. A certificate must be surrendered

19 for payment of the claim shown on its face. Upon sale, assignment or transfer by

20 the claimant of their claims represented by a certificate of claim issued by the

21 Department of Administration, any purchaser, assignee or transferee may

22 register said sale, assignment or transfer with the Department of Administration.

23 The first to register a sale, assignment or transfer shall have a prior claim against

24 all subsequent third party claims to the certificate registered prior in time and

such party to whom the certificate is sold, assigned or transferred shall be

2 substituted by the Superior Court in lieu of claimant in Rios v. Camacho Superior

3 Court Case No. SP0206-93."

I MINA' BENTE NUEBI NA LIHESLATURAN Gu.AfIAN 2007 (FIRST) Regular Session

Bill No. 68 (EC) As Substituted by the Committee on Finance, Taxation, Commerce and Economjc Development

Introduced by: J. A. Lujan r. Edward J.B. Calvo ti~(

AN ACT TO AUTHORIZE THE ISSUANCE OF VALUABLE CERTIFICATES TO COLA CLAIMANTS AWAITING PAYMENT, BY ADDING A NEW SUBSECTION 6404(d) TO TITLE 5 GUAM CODE ANNOTATED, RELATIVE TO BUDGETING FOR CLAIMS, TO BE KNOWN AS THE "COLA RELJEF ACT".


,., Section 1. Legislative Intent. The government of Guam is obligated to pay

3 each men1ber of the successful class of claimants in Rios v. Camacho, Superior

4 Court Case No. SP0206-93. Without sufficient revenue on hand to meet the

5 earlier appropriations and the Judgment in this court case, and in recognition of

6 the limited practical value of promjssory notes authorized by 5 GCA §22415, T

7 Liheslnturn hereby authorizes a means to make available to claimants the full

8 dollar value of the settlement for use without delay, in a manner consistent with

9 the court's preemptory writ of mandate commanding performance of duties and

IO implementation of 4 GCA §8137.1, and the agreement in the Stipulation and

11 Order of November 21, 2006, in the case cited above. I Liheslntura adopts, ratifies

12 and reaffirms the existing Superior Court of Guam Judgment and joins with the

Governor in ensuring the Judgment is non-appealable and non-challengeable.

2 Thjs Act authorizes issuance of a transferable, interest-bearing document sta ting

3 the settlement amount due each claimant, which can be used as a financial asset

4 to secure loans, pay taxes, sell for cash, or otherwise convey in an open market

5 for current use.


7 Annotated, relative to Budgeting for Claims, to read as follows:

8 "(d) Certificates authorized for COLA settlement. The Government shall

9 finally and permanently implement the settlement agreement entered into

tO between the Government of Guam and the COLA Class as ordered through the

11 Superior Court of Guam Judgment in Rios v. Camacho, Superior Court Case No.

12 SP0206-93. I Liheslatura acknowledges, adopts, and affirms the government's

J3 obligation to immediately pay all monies due and ordered by the Rios v.

14 Camacho Judgment of November, 2006.

15 To exped ite interim payment to COLA claimants in llios v. Camacho, and in

16 addition to any other remedy previously provided, the Department of

L7 Administration shall issue to claimants within five (5) working days a serial

18 certificate stating the amount due the claimant, excluding a ttorney's fees and

19 cost, but including terms that would affect the redeemable value of the certificate

20 over time, such as the rate of interest on undisputed unpaid government claims

21 of 7% per annum calculated from date of settlement, and confirmation that the

22 entire amount paid upon redemption shall be exempt from any and all Guam

23 taxes. Attorneys in the action may request a certificate for up to 50% of what is

24 owed to them. The Department of Administra tion shall inscribe on the

certifica tes only those names of claimants and corresponding amounts provided

2 by the Guam Retirement Fund, net of attorney's fees and costs, and shall retain a

3 lis ting of certificates issued. The Director of Administration may request the

4 Guam Retire1nent Fund to assist in actual disbursement of certificates to

5 claimants, their successors and assigns.

6 The willful failure of any person to perform his ministerial duty to prepare or

7 issue certificates in a timely manner as authorized by this Section, shall be

8 personally liable for reasonable attorney's fees and costs as may be required by

9 claimants to compel timely performance of such duty.

10 Such certificates, once issued, are evidence of such amounts payable by the

11 government of Guam, and are valid until redeemed or replaced by a certificate

12 issued to a registered successor as provided in this Paragraph. Certificates may

13 be transferred or assigned to a third party. Any successor in interest of claimant

14 shall stand in the same shoes as the claimant when the government disburses

15 payments pursuant to the entitlements previously established in Rios v.

16 Camacho, Superior Court Case No. SP0206-93. A certificate must be surrendered

17 for payment of the claim shown on its face. In the event that the certificate is not

18 redeemed by the end of the fiscal year, it shall be reissued to the bearer upon

19 demand. Upon sale, assignment or transfer by the claimant of their claims

20 represented by a certificate of claim issued by the Department of Ad1ninistration,

21 any purchaser, assignee or transferee may register said sale, assignment or

22 transfer with the Department of Administration. The first to register a sale,

23 assignment or transfer shall have a prior claim against all subsequent third party

24 claims to the certificate registered prior in time and such party to whom the

certificate is sold, assigned or transferred shall be substituted by the Superior

2 Court in lieu of claimant in Rios v. Camacho Superior Court Case No. SP0206-93.

3 Nothing in this Subsection is intended to restrict or eliminate remedies already

4 available to COLA claimants as holders of the non-appealable and non-

5 challengeable Judgment. I Liheslatura intends to supplement the remedies already

6 provided in 5 GCA §22415."

MlNA ' BENTE NUEBE NA LIHESLATURAN GUAHAN TWENTY-NI NTH GUAM LEGISLATURE

Senator Edward J.B. Calvo VICE SP EA K ER

Chairman COMMITI'EE ON FINANCE, TAXATION COMMERCE AND ECONOMIC DEVELOPMENT

Website: www .senatoreddiebazacalvo.com E-M ail address: [email protected] i55 Hesler Street Hagatfia, Guam 96910

OFFICE OF FINANCE AND BUDGET

Committee Report on

Telephone: (671) 475-8801 Facsimile: (671) 475-8805

Bill 68 (EC): "'An Act to Authorize the Issuance of Valuable

Certificates to COLA Claimants Awaiting Payment, by Adding a Neiv

Subsection (6404) d to Title 5 Guam Code Annotated, Relative to Budgeting

for Claims, to be knoivn as the "'COLA Relief Act."

Committee Report Bill Number 68 (EC)

Committee on Finance, Taxation, Commerce and Economic Development

I Mina'Bente Nuebe Na Liheslaturan Guahan Committee on Finance, Taxation, Commerce and Economic

Development Sinadot Edward J.B. Calvo, Ge' hilo

I. OVERVIEW

The Committee on Finance, Taxation, and Commerce held a public hearing

on Thursday, July 6, 2007, 10:00 a.rn., at I Liheslaturan Guahan's Public Hearing

Room on Bill No. 68 (EC), "AN ACT TO AUTHORIZE THE ISSUANCE OF

VALUABLE CERTIFICATES TO COLA CLAIMANTS AWAITING PAYMENT, BY

ADDING A NEW SUBSECTION 6404(d) TO TITLE 5 GUAM CODE

ANNOTATED, RELATIVE TO BUDGETING FOR CLAIMS, TO BE KNOWN AS

THE "COLA RELIEF ACT"."

Notices for the public hearing were disseminated throughout all local

media via facsimile and thus meeting the requirements of the Open Government

Law.

a. Committee Members and Senators present: Senator Edward J.B. Calvo, Chairman Senator Jesse Anderson Lujan, Vice-Chairman Senator Adolpho B. Palacios, Member Sena tor ben pangelinan

b. Appearing before the Committee: Mr. Mike Phillips, Attorney, COLA Claimants Class Counsel Chairman Joe T. San Agustin, Government of Guam Retirement Fund Board of Directors Mr. Jose Chargualaf, Dinan.a Para I Direchun Guiihan Retirees &

Survivors



Mr. Vicente Garrido, Dinana Para I Direchun Guahnn Retirees &

Survivors Mr. Ivan Carbullido, private citizen Mr. Victor B. Duenas, private citizen Mr. Francis Harlan Wolford, private citizen Pagat, Nasion Chamoru

c. Written Testimonies: Mr. Joe T. San Agustin, Chairman, Government of Guam Retirement Fund Board of Directors

II. SUMMARY OF VERBAL TESTIMONIES:

Chairman Edward J.B. Calvo called the Committee on Finance, Taxation,

Commerce and Economic Development to order at 10:20 a.m., welcomed and

introduced senators present. Bill No. 68 (EC) was the second item on the July 6,

2007 agenda.

Chairman Calvo invited the bill's primary sponsor to make opening

remarks. Senator Lujan noted that neither the claimants nor the Legislature can get

an accounting of funds appropriated for the purpose of satisfying claims. He also

noted that promissory notes are already authorized by law (5 GCA §22415).

Chairman Calvo then recognized Attorney Mike Phillips, COLA claimants'

class counsel testifying in favor of Bill 68, suggesting that the bill be amended to

allow certificates to be issued "in addition to any other remedy already provided".

He noted that the Department of Administration will give promissory notes to

businessmen, but not to retirees. In the course of discussions with the claimant

class' representatives, the administration "questioned every angle". He also wrote

to the Public Auditor. He expressed his appreciation for the introduction and

hearing for Bill 68, calling the "within five (5) working days" feature (page 2, Jines

2



3-4) "most attractive". He stated that this is not unreasonable, considering the data

on "99%" of individual claims that a re available. He also stressed that the

certificates are not intended to replace the original claims, and are negotiable. He

requested that the 7% interest on the unpaid claims be made retroactive to the date

of settlement. As a technical matter, Phillips stressed that the settlement was the

government's agreement with the dollar figure proposed by retiree class, not a

Court decision; he w ill provide the exact language. He also stressed that the bill

should add language that the settlement is final.

Attorney Phillips continued, asking that the Legislature "stop the games" at

the Deparbnent of Administration. He suggested that Department of

Administration employees be held personally liable for reasonable attorney's fees

for willful failure to carry out their ministerial duties. He also suggested that the

process of disbursing the certificates use Retirement Fund employees, because they

have no open hostility against retirees.

At the same hearing, during comments offered on related Bill No. 149 (EC),

Attorney Phillips also credited Bill 68 (EC) as indicating the Legislature's desire to

resolve the COLA issue. He declined to offer a legal opinion on the fairness of

partial payments, noting that consideration of the two (2) bills is a time for

legislative policymaking. In closing, Attorney Philips noted that the process for

issuing promissory notes is quicker than that for cash disbursements. Throughout

his testimony, senators in attendance requested Attorney Philip's assistance in

refining the language of the bill in committee.

Chairman Calvo then recognized former Speaker Joe T. San Agustin,

Chairman of the Retirement Fund Board of Directors, who appeared in support of

Attorney Mike Phillips' testimony in its entirety. In oral testimony, he asked that

3



the bill be fine tuned so it can be automatically implemented. The Retirement Fund

is ready to act, according to Mr. San Agustin. Questionable points are not an issue.

He read his written testimony into the record (attached).

Mr. San Agustin questioned whether the certificates have a maturity date,

and noted that that would have a bearing on their value. A buyer would want a

yield, comparable to their structure. He further stated the Legislature should

minimize discount rates. He concluded by asking - What is the bottom line to

claimants? On the other hand, he expressed concerned about claimants being

"ripped off", and abused by the private market. Mr. San Agustin stated wanting to

get the bill moving as Government of Guam is known for bureaucratic red tape.

Chairman Calvo then recognized Mr. Jose Chargualaf, appearing for the

newly-founded organization of COLA claimants "Dinaiia Para l Direchun Guahan

Retirees and Surv ivors". Mr. Chargulaf decried the successive efforts and promises

made by elected leaders to satisfy the COLA claims, including the possibility of

issuing promissory notes authorized under current law. He expressed not seeing

this as the intent of Bili 68, and indicated his support for the bill . He asked

lawmakers to penalize those violating the rights of retirees, saying they had made

"too many trips" to testify. Mr. Chargualaf concluded that his appearance before

the Committee was "not ... begging".

Chairman Calvo then recognized additional members of the public in

attendance. Mr. Vicente Garrido, also representing" Dinana Para 1 Direchun Gulihan

Retirees and Survivors", appeared in support of Bill No. 68. He thanked the

sponsors for introducing this bill, and asked for it to be expedited. Mr. Ivan

Carbullido also appeared in support of the bill and to urge its passage in the next

legislative session. Mr. Victor B. Duenas appeared in support of Bill 68 and felt that

4



a senator's interest in this issue is displayed by their attendance at this hearing.

Mr. Francis H. Wolford appeared in support of quick passage of Bill 68, with

enough votes to override the governor's possible veto.

Questioning from senators in attendance elicited comments from members

of the public listed above, which ranged across the spectrum from various failed

approaches to compel the governor to pay out the settlement amounts, to the

distribution priorities in Bill 149 (heard concurrently after 12:38 PM), and the

possibility that several COLA claims payment methods may be administered

concurrently, on a non-exclusive basis.

There being no further questions from the Committee or comments from the

testifying panel, Chairman Calvo informed members of the public that his

Committee will continue to accept written testimonies at his office within ten (10)

working days following the hearing. TI1e Public Hearing on Bill No. 68 (EC) was

adjourned at 12:38 p.m.

III. WRITTEN TESTIMONIES:

Mr. Joe T. San Agustin, Chairman, Government of Guam Retirement Fund Board

of Trustees, provided written testimony that referred generally to Bill No. 68 (EC),

but included comments and questions only about specific features in Bill No. 149

(EC), which was also included on the July 6 public hearing agenda.

IV. COMMITTEE RECOMMENDATIONS:

The Committee on Finance, Taxation, Commerce and Economic

Development has taken note of technical suggestions offered subsequent to the

5



hearing by COLA class counsel, for Bill 68 (EC) to accomplish the author's intent

by more closely conforming with established claims concepts and terms in related

court rulings and current statutes.

The Committee on Finance, Taxation, Commerce, and Economic

Development to which Bill No. 68 (EC), AN ACT TO AUTHORIZE THE

ISSUANCE OF VALUABLE CERTIFICATES TO COLA CLAIMANTS AWAITING

PAYMENT, BY ADDING A NEW SUBSECTION 6404(d) TO TITLE 5 GUAM

CODE ANNOTATED, RELATIVE TO BUDGETING FOR CLAIMS, TO BE

KNOWN AS THE "COLA RELIEF ACT'', was referred, does hereby submit

recommendations to I Mina' Bente Nuebe Na Liheslaturan Guiihan, TO PASS Bill No.

68 (EC), as Substituted by the Committee on Finance, Taxation Commerce and

Economic Development.

6

I Mina' Bente iluebe Na Lihe s laturan Guahan TWE NTY- N I NT H GUAM LEG IS LATU RE

Senator Edward J.B. Calvo VICE SPEAKER

Chairman, Committee oo Finance, Taxation, Commerce & Economic Development OFFICE OF FINANCE AN D BUDGET

E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place, Hagatfl.a, GU 96910

- June28, 2007 (5 working days prior to hearing date)

Public Hearing Notice 5 GCA §8107 (Regular)


The Committee on Finance, Taxation, Commerce, and Economic Development (Committee) has scheduled a public hearing on the following biHs and confirmation appointment:

10 a.m.: Mr. Alberto A. Lamorena V: Appointment to serve as Director, Bureau of Statistics and Plans

BilJ No. 68 (EC): "An Act to authorize the issuance of valuable certificates to COLA claimants awruting payment, by adding a new Subsection 6404{d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "CO.LA Relief Act".

Bill No. 82 (LS): "An Act to add a new Chapter 53 to Title 11, Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

Bill No. 126 (EC): "An Act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such expenses by the Guam Power Authority".

T he bearing will be held on F riday, July 6, 2007, at I Liheslatura11 Gualta11 's Public Hearing R oom in H agcitiia.

If written testimonies are to be presented at the hearing, the Committee requests that copies be submitted one day prior to the public hearing date, to the Office of Vice-Speaker/Senator Edward J.B. Calvo, 155 Hesler Place, Hagatiia, or sent via fax to 475-8805, or e-mailed to [email protected]. Copies of the aforementioned bill(s) may be obtained at I Liheslaturan Guahan 's website, www.guamlegislature.com. Individuals requiring special accorrunodations or services should contact the office at 475-8801 /2.

06/28/2007 THU 14:57 ADMIN

***************** *** TX REPORT *** **************** *

JOB NO.

ST. TIME PGS.

0492 06/28 14:21 1

SEND DOCUMENT NAME

TX/RX INCOMPLETE TRANSACTION OK 4727663 hit radio 100

ERROR

4773982 k-57 I power 98 4776411 ks tereo & kis h 6379870 kuam 6482007 marianas variety 4773079 pdn 6378819 tv 14 6498883 glimpses guam business 7342958 kprg 4774678 joy 92 4777136 harvest family radio

I Mtna ' Bente fluebe Na Lihes l aturan Gucihan TWENTY-NINTH GUAM LEGISLATURE

Senator Edward J.B . Ca lvo VICE SPEAKER

Chairman, Committee on Finance, Taxation, Commerce & Economic Development OFFICE OF FINANCE AND BUDGET

E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place, Hagatna, GU 96910

- June.28, 2007 ( 5 working days prior to hearing date)



The Conuruttee on Finance, Taxation, Commerce, and Economic Development (Committee) has scheduled a public hearing on the following bills and confirmation appointment:

10 a.m.: Mr. Alberto A. Lamorena V: Appointment lo serve as Director, Bureau of Statistics and Plans

Bill No. 68 (EC): "An Act to authorize the issuance of valuable certificates to COLA claimants awaiting payment. by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): "An Act to add a new Chapter 53 to Title 11, Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

Bill No. 126 (EC): "An Act to appropriate Street Light Funds to Guam Power Authority, to offset amowlts added to customer billings to cover such expenses by the Guam Power

A • •. .£1* - -!•~ J1

~001 ·,

i I M in a• B e n te N uebe N a Lihes l aturan G u a han TWENTY-N I NT H GUA M LEG ISLATURE

Senator Edward J . B . Calvo VICE SPEAKER


E-Ma il address: [email protected] Website: www.senatoredd iebazacalvo.com 155 Hesler Place, Hagatiia, GU 96910


July 5, 2007 - {within 48 hours of hearing date)


The Committee on Finance, Taxation, Commerce, and Economic Development (Comrrrittee) has scheduled a public hearing on the following bills and appointments for confirmation:

10:00 a.m.: 1Vlr. Alberto A. Lamorena V: Appointment to serve as Director, Bureau of Statistics and Plans

Add on:

Bill No. 68 (EC): "An Act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404( d) to Title 5 Guam Code Annotated , relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): "An Act to add a new Chapter 53 to Title 11 , Guam Code Armotated, to au thorize the liquidation of tax l iabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

BilJ No. 126 (EC): ' 'An Act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such expenses by the Guam Power Authority".

Bill No. 149(EC): An Act to authorize Ten Million Dollars in promisso1y notes from GTA sale proceeds to pay for COLA Judgment Award Pursuant to SP0206-93 and Public Law 28-151 .

T he hearing will be held on Friday, J uly 6, 2007, 10:00 a. m. at I Lilteslaturan Gualta11 's Public Hearing Room in Hagatiia.

If wrilten testimonies are to be presented at the hearing, the Committee requests that copies be submitted one day prior to the public hearing date, to the Office of Vice-Speaker/Senator Edward J.B. Calvo, 155 Hesler Place, Hagatna, or sent via fax to 475-8805, or e-mailed to [email protected]. Copies of the aforementioned bill(s) may be obtained at l Lihesiaturan Guahan ·s website, www.guamlegislature.com. Individuals requiring special accorrunodations or services should contact the office at 475-8801/2.

I " 07/05 1 2007 THU 09:31 ADMIN

***************** *** TX REPORT *** *****************

JOB NO.

ST. TIME PGS.

0550 07/05 08:47 1

SEND DOCUMENT NAME

TX/RX INCOMPLETE TRANSACTION OK 4727663 hit radio 100

ERROR

4773982 k-57 I power 98 4776411 kstereo & kish 6379870 kuam 6482007 marianas variety 4773079 pdn

-6378819 ty 14 6498883 glimpses guam business 7342958 kprg 4774678 joy 92 4777136 harvest family radio 4722825 BBMR

I Mina' Bente Nuebe Na Liheslaturan Gucihan TWENTY- NINTH GUAM LEGISLATURE


Chairman, Committee on Fioance,·Taxation, Commerce & Economic Development OFFICE OF FINANCE AND BUDGET

E-Mail address: [email protected] Webs.ite: www.senatoreddiebazacalvo.com 155 Hesler Place, Hagatna, GU 96910

July 5, 2007 (within 48 hours of hearing date)



The Committee on Finance, Taxation, Commerce, and Economic Development (Committee) has scheduled a public hearing on the followiug bills and appointments for confinnation:

10:00 a.m.: Mr. Alberto A. Lamorena V: Appointment to serve as Director, Bureau of Statistics and Plans

Bill No. 68 (EC): "An Act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Gu~ Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): "An Act to add a new Chapter 53 to Title 11 , Guam Code Annotated. to authorize the liquidation of tax liabilities through commercial intennediaries, to be known as the "Tax Recovery Act".

Bill No. 126 (EC): "An Act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such

ldJ001

j

I 1 I

I !

I Mina' Bente Nuebe Na Liheslaturan Gucihan TWENTY-NINTH GUAM LEGISLATURE



E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place, Hag<i.tfla, GU 96910

Telephone: (671) 475-8801 Facsimile: (6 71) 4 75-8805

June 28, 2007

MEMORANDUM

To:

From:

Senators, 29th Guam Legislature

Acting Chairman, Committee on Finance, Taxation, Commerce and Economic Development

Subject: PUBLIC HEARING

Dear Senators:

Hafa Adai! Please be advised that the Committee on Finance, Taxation, Commerce and ~) Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007,

10:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room in Hagatiia. The following is the agenda to be heard on that day.

•

•

•

•

Mr. Alberto A. Lamorena V: Appointment to serve as Director, Bureau of Statistics and Plans

Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404( d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11 , Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act" . _

Bill No. 126 (EC): An act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such expenses by the Guam Power Authority.

Should you have any questions regarding this matter, please feel free to contact my office at 475-8801. I look forward to your attendance and participation.

Si Yu 'os Ma 'ase!

cc: Protocol AudioNisual

- -I Mina, Bente Nuebe Na Liheslaturan Guahan

TWENTY-NINTH GUAM LEGISLATURE



E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place Hagatiia, Guam 96910


June 28, 2007

The Honorable Felix P. Camacho Maga 'lahen Guahan P.O. Box 2950 Hagama, Guam 96932

Dear Governor Camacho:

Ha/a Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, 10:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room in Hagatfia. TI1e Committee will receive testimony from the public regarding the following measures:

• Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for cJaims, to be known as the "COLA Relief Act".

•

•

Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11 , Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".


Copies of the aforementioned bills may be obtained at 1 Liheslaturan Guahan 's website, www.guamlegislature.com. I solicit any comments from any .entity within the Executive Branch affected by the measures mentioned above. Please ensure that your appropriate cabinet members are present at the hearing. Should they be unable to attend, please contact my office al 4 75-880 I .

Si Yu 'os Ma 'the!

tonio "Tony" R. Unpingco

cc: Chief of Staff, Governor's Office Governor's Legal Counsel

) ·

'J

I Mina' Bente fluebe Na Liheslaturan Guahan TWENTY-NINTH GUAM LEGISLATURE



E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place Hagtima, Guam 96910


June 28, 2007

Mr. Artemio Ilagan Director Department of Revenue and Taxation P.O. Box 23607, GMF Barrigada, Guam 96921

Dear Mr. Ilagan:

Hlifa Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, I 0:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room in Hagatiia. The Committee requests your attendance at the bearing to present testimony relative to the fol lowing agenda:

•

•

•

Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11, Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

Bill No. 126 (EC): An act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such .expenses by the Guam Power Authority.

If written testimonies are to be presented at the hearing, we request that copies be submitted one day prior to the public bearing date, to the Office of Vice-Speaker/Senator Edward J .B. Calvo, 155 Hesler Place, Hagatiia , or sent via fax to 475-8805, or e-mail to [email protected]. Copies of the aforementioned bills may be obtained at I Liheslaturan Guahan 's website, www.guamlegislature.com. Should you be unable to attend, please contact my office at 475-8801 .

ntonio "Tony" R. Unpingco --..~..__hairman

I Mina' Bente Nuebe Na Liheslaturan Guahan TWENTY-NINTH GUAM LEGISLATURE



E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place Hagatfia, Guam 96910

June 28, 2007

Ms. Lourdes M. Perez Director Department of Administration P.O. Box 884 Hagatiia, Guam 96932

Dear Ms. Perez:

CJ CJ Telephone: (671) ~-8801 rn

kl7\:: ' u Facsimile: (67I)~r88§ ~~

o -.:> 1 • .JO ::o , __ , ~ -n rn c.iJ ...J..J ·- <

:_.::~t-·:: j'TI 0 . .$. \.J r--, -,, ·· ~ \.._. , __

-n -:;: ~ C) '7 m . . y..J

Hafa Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, I 0:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room in Hagatiia. The Committee requests your attendance at the

1) hearing to present testimony relative to the following agenda:

• Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

• Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11 , Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

• BilJ No. 126 (EC): An act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer biJlings to cover such expenses by the Guam Power Authority.

If written testimonies are to be presented at the hearing, we request that copies be submitted one day prior to the public bearing date, to the Office of Vice-Speaker/Senator Edward J.B. Calvo, 155 Hesler Place, Hagatiia, or sent via fax to 475-8805, or e-mail to [email protected]. Copies of the aforementioned bills may be obtained at 1 Liheslaturan Guahan 's website,

"".,..."""a:i""gislature.com. Should you be unable to attend, please contact my office at 475-8801. '\

a 'aseY ~

tonio ''Tony" R. Unpingco

)

I Mina' Bente N uebe Na Liheslaturan Guahan TWENTY- NINTH GUAM LEGISLATURE



E-Mail address: [email protected] Website: www.senatoreddiebazacaJvo.com 155 Hesler Place Hagatiia, Guam 96910

June 28, 2007

Mr. Carlos Bordalle Director Bureau of Budget and Management Research P. 0. Box 2950 Hagatiia, Guam 96932

Dear Mr. Bordallo:


\~CEIVED ~ .· JUN 2 ~ Z007

; .Bureau of Budget & 1 Mgmt Researe~

Ha/a Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, I 0:00 a.m., at 1 Liheslaturan Guahan 's Public Hearing Room in Hagatiia. The Committee requests your attendance at the

) bearing to present testimony relative to the foJlowing agenda:

•

•

•

Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404( d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11, Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".


-If written testimonies are to be presented at the hearing, we request that copies be submitted one day prior to the public hearing date, to the Office of Vice-Speaker/Senator Edward J.B. Calvo, I 55 Hesler Place, Haglitfia, or sent via fax to 475-8805, or e-mail to [email protected]. Copies of the aforementioned bills may be obtained at I Liheslaturan Gulihan 's website, www.guamlegislature.com. Should you be unable to attend, please contact my office at 475-8801.

)

I Mina' Bente iluebe Na Liheslaturan Guahan TWENTY-NI NTH GUAM LEGISLATURE

Senator Edward J.B . Calvo VICE SPEAKER


E-Mail address: [email protected] Website: www.senatoreddiebazacalvo.com 155 Hesler Place Hagiitiia, Guam 96910

June 28, 2007

Ms. Doris Flores Brooks, CPA, Public Auditor Office of the Public Auditor of Guam PDN Building, Suite 401 238 Archbishop Flores Street Hagatiia, Guam 96910

Dear Ms. Brooks:


RECEIVED OFflCE OF111E PUBUC·AUDITIHl

DAn:.. .. r~P !"I oz TIME:_({;_; ~_J_-Pft/~ ~

Hafa Adai! The Conunittee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, 10:00 a.m. , at I Liheslaturan Guahan 's Public Hearing Room jn Haga/ii.a. The Committee invites you to present testimony relative to the following agenda:

• Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

• Bill No. 82 (LS): An act to add a new Chapter 53 to Title 11 , Guam Code Annotated, to authorize the liquidation of tax liabilities through commercial intermediaries, to be known as the "Tax Recovery Act".

• Bill No. 126 (EC): An act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such expenses by the Guam Power Authority.

Copies of the aforementioned bills may be obtained at I Liheslaturan Guahan 's weQsite, www.guarnlegislature.com. The Committee encourages verbal testimony, however, written testimony is preferred and should be submitted to my office by 12 noon the day prior to the public hearing date. Should you be unable to attend, please contact my office at 475-8801.

tonio "Tony" R. Uopingco

)

I Mina' Bente Nuebe Na Liheslaturan Gucihan TWENTY-NINTH GUAM LEGIS LATURE



E-Mail address: [email protected] Website: www .senatoreddiebazacaJvo.com 155 Hesler Place Hagtitiia, Guam 96910


June 28, 2007

The Honorable Alicia Limtiaco, Attorney General Office of the Attorney General Th'e Justice Building 287 West O'Brien Drive Hagatiia. Guam 96910

Dear Attorney General Lirntiaco:

Hafa Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, 10:00 a.m., at I Lihes/aturan Guahan 's Public Hearing Room in Hagatiia. The Committe·e invites you to present testimony relatjve to the fo llowing agenda:

•

•

•

Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA cJaimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".



Copies of the aforementioned bills may be obtained at I Liheslaturan Guaflan 's website, www .guamlegislature.com. The Committee encourages verbal testimony, however, - written testimony is preferred and should be submitted to my office by 12 noon the day prior to the public hearing date. Should you be unable to attend, please contact my office at 475-8801.

I Mina' Bente Nuebe Na Liheslaturan Guahan TWENTY-NINTH GUAM LEGISLATURE




June 28, 2007

Attorney Michael Phillips Phillips & BordaJlo 410 West O'Brien Drive Hagatiia, Guam 96910

Dear Attorney Phillips:


Ha/a Adai! The Committee on Finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, 10:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room in Hagatrla. The Committee invites you to present testimony relative to the following agenda:

• Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404( d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".

Copies of the aforementioned bill may be obtained at I L,iheslaturan Guahan 's website, www.guamlegislature.com. The Committee encourages verbal testimony, however, written testimony is preferred and should be submitted to my office by 12 noon the day prior to the public hearing date. Should you be unable to attend, please contact my office at 475-8801.

ntonio "Tony" R. Unpingco hairman

TO:

SENATOR EDWARD J.B . CALVO VICE-SPEAKER

COMMITTEE ON FINANCE, TAXATION, COMMERCE &

ECONOM I C DEVELOPMENT

OFFICE OF F I NANCE AND BUDGET

155 HESLER PLACE , HAGATNA, GUAM 969 1 0

TELEP HON E: (671)475-880 1 FACSIMILE : (671)475 -8 805

FACSIMILE TRANSMITTAL SHEET

DEPARTMENT:

Paula M. Blas, Director Government of Guam Retirement Fund FAX NUMBER: DATE:

475-8922 - JULY 5, 2007 --PHONE NU MBER: TOTAL NO_ OF PAGES INCLUDING COVER:

475-8900/01/8943 RE:

Reminder

0 URGENT 0 FOR REVIEW DPLEASE COMMENT 0 PLEASE REPLY 0 PLEASE RECYCLE

NOTES/COMMENTS:

Dear Ms. Blas:

Htifa Adai! The Committee on .finance, Taxation, Commerce and Economic Development (Committee) has scheduled a public hearing on Friday, July 6, 2007, 10:00 a.m., at I Liheslaturan Guahan 's Public Hearing Room W..Hagiztiia. The Committee invites you to present testimony relative to the following agenda:~ ., ,,, J" ,

1 t

• ... ~

~·

Bill No. 68(EC): An a\t to &J}thorize the issuance of valuable certificates to COLA claimants awat,ting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Arihotated, relative to budgeting for claims, to be known as the "COLA Relief Act"_

• Bill No. 149(EC): An Act to authorize Ten Million Dollars in promissory notes from GTA sale proceeds to pay for COLA Judgment Award Pursuant to SP0206-93 and Public Law 28- i ~ 1.

Copies of the aforementioned bill may be obtained at I Lihes/aturan Guahan 's website, www.guamlegislature.com. The Committee encourages verbal testimony, however, written testimony is preferred and should be submitted to my office by 12 noon the day prior to the public hearing date. Should you be unable to attend, please contact my office at 475-8801 _

Committee on Finance, Taxation and Commerce -: ffice of Fina~Budgel

Date Kcv'c': 0 'VO '()7 Time: ~c.J

Rc11'i by: ---r.ii:-----~" .int Name: -+-k'_;:_~-=57~V __

I

Chairman, Committee on Revenue and Taxation 29th Guam Legislature Hagatna, Guam 96913

Dear Mr. Chairman:

July 16, 2007 309 Vivian Way Tamuning, Guam 96913

My name is Frank G. Blaz, a GovGuam retiree. My comments on Bill 68 follow.

In lieu of direct payments to COLA claimants, Bill No. 68 proposes to issue certificates stating the amounts due to each claimant. The face value of the certificate shall be the amount provided by the Retirement Fund, less attorney's foes and costs. "Such certificates, once issued, are evidence of such amounts payable by the government of Guam, to be redeemed by bearer at a later date." The certificate is transferable. The intent of the government is to enable each claimant to use the certificate as evidence of financial asset to secure loans, pay taxes, or sell for cash.

This arrangement can work under certain conditions:

l. If there is a specific date in the near future when the certificate can be redeemed with interest. Every bearer of this note will want the guarantee that the certificate is redeemable by a specific date. The cash must be available then to liquidate this debt ..

2. If you can find buyers who pay large taxes who would be willing to buy the certificates, perhaps at a discount, for payment of taxes. If they purchase the certificates to pay their taxes, they would be satisfying their tax obligations and be making money at the same time. The problem with this option is that it will create a cash shortfall for the government when you are devising a scheme to avoid it.

No matter what method is used to enable COLA claimants to receive payments, the government ends up footing the bi11. The certificates should not be issued on the hope that they will not affect the government cash position. They will . The only question is whether they will impact now or later. .

I hope that the COLA payments can be made soon. It is unreasonable to expect government operations to be adjusted to the extent needed to pay for COLA. The only other remedy remaining is government borrowing, which may necessitate raising taxes.

St:. ... avr Edward ).b. Cal& ACKNO LEDGZMENT RECEIP R cv'tf ''II'~"--"'--¥'-------

Time: [/ : i O~rn D(1tr· _ ijth (o=;-

Felix P. Camacho Governor

Michael W. Cru~. M.D. Ueutenant Governor

R GOV ERNMENT OF GUAM

RETIREMENT FUND ST AB l llTY • StCUlllTY • lllW A llO S

July 6, 2007

Paula M. Blas D1rect01

Vice-Speaker Edward J.B. Calvo Chairman, Committee on Finance, Taxation & Commerce 155 Hesler Street Hagatna, Guam

Mr. Chairman and Members of the Committee:

Reference: (1) Bill 68 -An Act to Authorize the Issuance of Valuable Certificates to COLA Claimants Awaiting Payments . ... (2) Bill 149-An Act to Authorize Ten Million Dollars in Promissory Notes from GTA Sale Proceeds to Pay for Cola Judgment.. .. .

Mr. Chainnan, my name is Joe T. San Agustin, currently chainnan of the Board of Retirement Fund Trustees, testifying in favor of both Bills, which ever, the Committee is now having a Public Hearing.

Both Bills aims to satisfy the COLA claimants, in Superior Court Case No. SP0206-93, with a total judgment in excess of $123.5 millions, covering some 4,877 COLA awardees.

Bills 68 would provide, if enacted, the issuance of "Valuable Certificates" to each COLA awardees, "which can be used as evidence of financial asset to secure loans, pay taxes, sold for cash, or otherwise conveyed in an open market," i.e. maybe transferred or assigned to a third party.

Bill 149 - would assign the current OTA Promissory Note of $ 10 Million, which matures on Jan I, 2013, at a rate of 5.25%, to the "retiree class eligible for the Cost of Living Allowance (COLA)" as partial payment of the COLA awards. The COLA class would then be aJJowed to "sell, pledge, assign, transfer or otherwise liquidate the note to another party for the purpose of distributing cash payments" in a spe~ified order of priority.

StJL.uvr £dward }.b. u tlv ACKNOV4~JlWMENT RECEf i· Rcv'tf 1'ir ~--._.....~-------

Time\~:\)

D: 1 t"~-<\ S>:\

Trustees:

Joe T. San Agustin Charman

Wilfred P. Leon Guerrero, Ed.O. \Tice-Cha;man tnvestmenf Committee. Charman

James J. Taylor, Ph.D. Secretary fnveSJ.ment Committee. Vic&-Chai'man

Gerard A. Cruz Treasu-er Au<Jit & Operations Committee, Char man

George A. Santos Member$' & BeneliU CommittH, Char man

Katherine T.E. Taltano Trustee

Antolina S. Leon Guerrero Trusree

424 Route8

Moite, Guam 96910 Tel : 671 .475.8900 Fax: 671.475.8922 www.ggrf.com

Potentially, there are several problems which I hope necessary remedial amendments would be in order to insure that the intent of such Bill 68 would be fulfilled.

I. Suggest that the Bill specified who would be the Administrator of such assigned GTA note to "act for the COLA awardees" to perform the administrative functions of"selling the note- "and at what would be acceptable price amount.

2. GT A $ ~O million note, as it is a private (not government note), if bought by a third party, would be "sold at a discount" for the buyer to realize an equivalent yield in the private money market. . The !_lj)te interest rate of 5.25% for the buyer would.want a yield to maturity at, at least 1f(o 8%, and therefore, the discount price would most likely in the neighborhood of 20% to 30%.

3. In other words, the $10 million amount note, at a discount of 20% to 30% would provide immediate cash proceeds between $8 million (20%) or $7 millfon (30%)

4. Applying the three category of priority, the 151 category which covers some 1,182 recipients- $5,238,225; and the 2"d category, covering some 1,377 recipients -$3,442,500. Totaling 2,559 recipients (some 52% of the total recipients) -- $8,680,725.

5. There will be no payments made to the 3rd category.

Respectfully,

: ___ ~ .iAJ.cdt~/::an oard of Retirement Fund Trustees

I Mina ' Bent e Nuebe Na Liheslaturan Guahan TWENTY-NINTH GUA M LEGISLATURE

Senator Edward J . B. Calvo VICE SPEAKER

Chairman, Committee on Finance, Taxation, Commer ce & Economic Development - OFFICE OF FINANCE AND BUDGET


June 28, 2007

Telephone: (6 7 I) 475-8801 Facsimile: (671) 475-8805

MEMORANDUM UCEIVED ~

(,. JUN 2 9 2007 - [ To: Mr. Carlos Bordallo, Director I Bureau of Budget and Management Research

From: Acting Chairman, Committee on Finance,

ureau of Budget & ; Mgmt Research. \

Taxation, Commerce, and Economic Developm nt

Subject: REQUEST FOR FISCAL NOTES

Hafa Adai! Pursuant to 2 GCA §9102, I respectfully request BBMR to prepare fiscal notes for the following measures, scheduled to be publicly heard on Friday, July 6, 2007, 10:00 a.m. at I Liheslaturan Guahan 's Public Hearing Room in Hagatiia.:

•

•

•

Bill No. 68 (EC): An act to authorize the issuance of valuable certificates to COLA claimants awaiting payment, by adding a new Subsection 6404(d) to Title 5 Guam Code Annotated, relative to budgeting for claims, to be known as the "COLA Relief Act".


Bill No. 126 (EC): An act to appropriate Street Light Funds to Guam Power Authority, to offset amounts added to customer billings to cover such expenses by the Guam Power Authority. ~

Copies of the aforementioned bills may be obtained at I Liheslaturan Guahan 's website, www.guamlegislature.com. I solicit any comments from any entity within the Executive Branch affected by the measures mentioned above. Please ensure the attendance of yourself and appropriate staff at this hearing. Should you be unable to attend, please contact my office at 475-8801 .

Si Yu 'os Ma 'ase!

I MINA' BENTE NUEBE NA LIHESLATURAN GUAHAN 2007 (FIRST) Regular Session

Bill No. 68 (EC)

Introduced by: J.A. Lujan¥ Edward J.B. Calvo (/{_

AN ACT TO AUTHORIZE THE ISSUANCE OF VALUABLE CERTIFICATES TO COLA CLAIMANTS AWAITING PAYMENT, BY ADDING A NEW SUBSECTION 6404(d) TO TITLE 5 GUAM CODE ANNOTATED, RELATIVE TO BUDGETING FOR CLAIMS, TO BE KNOWN AS THE "COLA RELIEF ACT".


2 Section 1. Legislative Intent. The government of Guam is obligated to pay a

3 court-ordered settlement to each member of the successful class of claimants in

4 Rios v. Camacho, Superior Court Case No. SP0206-93. Without sufficient

5 revenues from which to make an appropriation, or borrowing authority to

6 finance this obligation, the government should approve a creative way to convey

7 the value of the settlement for use by claimants without delay. This Act

8 authorizes issuance of a document stating the settlement amount due each

9 claimant, which can be used as evidence of financial asset to secure loans, pay

10 taxes, sold for cash, or otherwise conveyed in an open market for current use.


12 Annotated, relative to Budgeting for Claims, to read as follows:

Documents

Minn Bentt' Na Liheslnt11 ran Guiihan - Legislature of Guam Reports/Bill No. 68... · 2017-04-06 · I M i n a ' B e 11 t e N u e b e N a L i It e s I a t tt r a 11 G 11 a h a 11