House Bill 16-206 is now Public Law 16-31.
Gov. Benigno R. Fitial said he vetoed the bill sponsored by Saipan Republican Reps. Heinz S. Hofschneider and Stanley T. Torres because the CNMI Constitution did not specifically include land compensation payments as among DPL’s allowable expenses under its operations funds.
The House of Representatives, however, disagreed with the governor’s interpretation.
Subsequently, two-thirds of the House members overrode the governor’s veto on Feb. 13.
The Senate followed on March 10.
Speaker Arnold I. Palacios, R-Saipan, and Senate President Pete P. Reyes, R-Saipan, certified the bill as a new law through an override on March 11.
In its findings, the new law said land compensation judgments usually include interest which is compounded until the judgment is paid in full.
Because the cash-strapped government is not paying on time land compensation judgments rendered by courts, its debt to landowners who won such claims has ballooned over time.
The CNMI government floated a $40 million bond in 2003 to pay private landowners for their properties used for different public projects.
Of the amount, however, only $27 million went to landowners as the rest were used for other projects like the new prison facility in Susupe.
Some of those landowners who weren’t paid went to court and got favorable judgments for their claims.
P.L. 16-31 now mandates DPL to use its operations funds to settle their land compensation judgments.
