BY a 16-1 vote, with one abstention, the Saipan and Northern Islands Legislative Delegation on Thursday passed House Local Bill 24-21, appropriating $2 million in dividends that the Commonwealth Economic Development Authority collected from the Commonwealth Utilities Corporation.
Speaker Edmund S. Villagomez cast the lone dissenting vote, while House Floor Leader Marissa Flores abstained.
Senate Vice President Corina Magofna, Sen. Celina R. Babauta, Sen. Manny Castro, and Rep. Denita Yangetmai were excused.
Authored by Rep. Blas Jonathan Attao, H.L.B. 24-21 proposes to appropriate $1 million to the Department of Finance, “for various obligations and/or local projects within the Third Senatorial District,” and the other $1 million to CEDA for economic development relating to local projects within the Third Senatorial District.
Prior to the vote, Attao offered a floor amendment to include language stating, “said funds originated from Covenant Section 702 funds and shall be appropriated from the revolving funds established pursuant to Public Law 5-37.”
P.L. 5-37 established a mechanism to use Covenant funds to secure and pay principal, interest, and premium to bondholders. It allows the CNMI Legislature to appropriate Covenant funds for economic development projects.
CEDA Executive Director Derek Sasamoto expressed support for the local bill. Noting that the CNMI is in dire need of revenue to pay for government obligations, he told lawmakers, “We understand that we are one CNMI, one united effort, and we need to help each other out when we can, so we understand the reason for the appropriation.”
He also expressed appreciation and gratitude for the “balance” provided in the bill by appropriating $1 million of the total amount to CEDA. He said it allows CEDA to use the fund solely for economic development, “because that’s what we have been hoping for.”
He noted that Public Law 22-1 mandates CEDA to take the lead in economic development, which created unfunded liabilities.
