Rep. Stanley T. Torres, Ind.-Saipan, scheduled the first public hearing for March 8 in the House chamber, inviting members of the public and representatives of 13 government agencies.
Introduced by Vice Speaker Felicidad T. Ogumoro, House Bill 17-164 or the CUC Local Investment Act, seeks to allow the indigenous people to own and manage the utilities.
Once H.B. 17-164 becomes law, CUC will be called the Northern Marianas Utility Corporation. It will not be obligated to take over any of CUC’s financial obligations or its liabilities.
In effect, the bill will repeal Public Law 16-17 which privatizes CUC for $250 million paid in 40 years.
Ogumoro noted that since this law’s enactment in Oct. 2008, no investor has expressed interest in acquiring CUC.
H.B. 17-164 states it will be in the best interest of the NMI people to hold onto CUC and allow indigenous people to own it.
Local ownership, the bill added, is “appropriate and justified.”
Bona fide residents of the NMI, the bill said, can invest and own preferred stocks in CUC.
According to the bill, the Marianas Public Land Trust monies owned by Northern Marianas Descents may be invested in the utilities agency.
Once established, the Northern Marianas Utility Corp. will issue shares of common stock in $1,000 par value per share only to NMDs but may issue shares to non-voting persons who are bona fide residents of the CNMI.
No one will own more than $10,000 worth of stocks.
There will be a board composed of seven members: one from Rota, one from Tinian and five from Saipan. At least one must be Carolinian and at least two must be women.
The board will appoint an executive director who will then hire a corporate comptroller, an assistant director and other staff members.
