THE Democrat-Independent-led House Committee on Ways and Means has decided not to act on House Joint Resolution 22-13 which will authorize the Marianas Public Land Trust to administer a $15 million loan program as a sub-recipient of the Coronavirus State and Local Fiscal Recovery Funds from the American Rescue Plan Act.
The joint resolution was introduced by Republican Rep. Joseph Leepan T. Guerrero.
The committee on Friday met with the trustees to ask questions pertaining to, among other things, MPLT’s capability to handle ARPA funds.
Those who attended the meeting were MPLT Chairwoman Maria Frica T. Pangelinan, Vice Chairman Vianney Hocog, trustees Martin B. Ada and Pedro Paduna R. Deleon Guerrero.
The committee members present were its chairman, Donald Manglona, House Floor Leader Ralph N. Yumul, Reps. Leila Staffler, Sheila Babauta, Corina Magofna, Joel Camacho and Vicente Camacho. Rep. Tina Sablan attended via video call.
A former senator and finance and accounting director, Pangelinan said the trustees have no experience in implementing a federal program, “but we know how to read, we know how to follow instructions and we know how to design a program, and if we don’t know, we will seek help and our legal counsel’s advice.”
Manglona asked the trustees which companies they plan to assist with the ARPA monies.
Ada said Marianas Pacific Air and Tinian Shipping Lines “are interested in applying for a loan.”
He also told the committee that the trustees have asked the attorney general if MPLT has the authority to administer a federally funded program.
“The AG has not responded,” Ada added.
“Now I have more questions and concerns,” Babauta said, adding that if the CNMI government wants to help private businesses or farmers affected by the Covid-19 pandemic, there are existing agencies tasked to assist them.
“I am not ready to support the joint resolution. I think there are just too many unanswered questions, so I moved to table this joint resolution,” Babauta added.
For her part, Rep. Tina Sablan said the fundamental question is if a joint resolution is legally sufficient to give the trustees the authority to administer the program.
She seconded Babauta’s motion to table H.J.R. 22-13.
Before the committee voted to table the joint resolution, Pangelinan said they, the trustees, have spent a significant amount of time studying U.S. Treasury rules.
She assured the committee that MPLT will implement a program in compliance with those rules.
She added that their constitutional duty as trustees will not be disrupted by the additional task of administering ARPA monies.
“I am sacrificing my time reading the federal rules to make sure that should the resolution be approved we will be prepared to set up a system that is compliant with U.S. Treasury rules,” she reiterated.
Accountable
In her letter to the committee prior to the meeting, Pangelinan said the governor’s office is accountable to the U.S. Treasury for the program that will be administered by MPLT.
She said MPLT will also work closely with the loan recipients to avoid any violations in administering the program.
She said MPLT’s primary tasks “will be to develop and implement policies and procedures for record retention, to determine and monitor implementation of criteria for determining `the eligibility of beneficiaries; maintain procedures for obtaining information…; and implementing risk-based due diligence for eligibility determinations that would comply with the mandate of the program and would also be consistent with the…administrative processes and requirements….”
