THE House of Representatives on Tuesday unanimously passed House Bill 24-17, which would increase the Commonwealth Ports Authority’s financial autonomy.
All 18 House members present voted to pass H.B. 24-17. Reps. Ralph N. Yumul and John Paul Sablan were excused.
Authored by Speaker Edmund S. Villagomez, H.B. 24-17, which now goes to the Senate, seeks to remove the statutory restrictions on the use of airport and seaport funds.
Right now, Public Law 2-48, codified as 2 CMC Section 2174, restricts the use of airport revenues exclusively for airport-related activities, and seaport revenues exclusively for seaport-related activities, “with no cross-subsidization between the two.”
H.B. 24-17 would strike out the provision the restricts the use of CPA funds, and include language that says, “as necessary to comply with applicable federal grants assurances, bond indentures or other binding legal obligations.”
H.B. 24-17 would not supersede other potential sources of authority requiring segregation of federal funds for example. For instance, a federal rule states that the U.S. Department of Transportation may only approve an airport development project grant application if written assurances are provided that the revenue generated by a public airport will be used exclusively for the capital or operating costs of the airport.
Also, the bill would not modify or affect bond indentures and lease agreements or obligations. CPA remains bound by any other applicable financial and legal restrictions governing its funding sources.
The bill states that the ability to use airport and seaport funds interchangeably will allow CPA to supplement revenue shortfalls between the two port facilities, ensuring continuity in operations and financial stability.
CPA Board Chairman Ramon A. Tebuteb asked lawmakers to support H.B. 24-17, saying its purpose “is very direct with respect to the [bill’s] findings.”
