Members of the House of Representatives hold a session on Tuesday, Sept. 9, 2025.
Photo by Emmanuel T. Erediano
THE House of Representatives on Tuesday unanimously passed House Bill 24-50, which proposes authorizing the CNMI government to borrow $29 million from the Marianas Public Land Trust.
All 16 members present voted to pass the measure, which required a two-thirds majority (14 members). Vice Speaker Diego Vincent Camacho attended the session via Zoom while House Floor Leader Marissa Flores, Rep. Malcolm Omar and Rep. Raymond U. Palacios were excused.
Authored by Rep. John Paul Sablan, H.B. 24-50 now goes to the Senate. The bill would allow MPLT to withhold and retain the net annual public land income distributable to the general fund, starting in fiscal year 2026, for the repayment and security of the loan.
Prior to the roll call vote, Sablan, who chairs the House Ways and Means Committee, reiterated that once the bill passes the Senate and is signed into law, the $29 million loan will be used to pay the NMI Settlement Fund for 75% of the retirees’ pensions. He added that this will “free up $29 million of the general fund that can be allocated through a supplemental budget” for other government agencies, including the Public School System.
The bill also includes a provision authorizing the CNMI government, as a condition for the loan agreement, “to defend, hold harmless, and indemnify” MPLT trustees individually and collectively, along with MPLT staff, counsel, and consultants, “for any suits, causes of action, litigation, and claims, as well as any loss, liability, and expense of any kind, including attorney’s fees, which may arise or relate to the loan agreement or events arising therefrom.”
H.B. 24-50 would require the Commonwealth to cover the cost of representation through the Department of Finance without cost to MPLT or to provide representation through the Office of the Attorney General. In the event MPLT must engage its own counsel, Finance must reimburse MPLT for such costs and expenses. MPLT may withhold further distributions of income until it is fully reimbursed.
The bill clarifies that the obligation to defend, indemnify, and hold MPLT harmless does not apply to any suits against MPLT or its trustees for breach of their fiduciary duty regarding prudent investments, as set forth in Article XI, Section 6 of the CNMI Constitution.
Correction: An earlier version of this story mistakenly reported that Vice Speaker Diego Vincent Camacho was excused from the session.
