Gov. David M. Apatang raises the copy of Public Law 24-13 after signing it as Lt. Gov. Dennis James Mendiola applauds on Tuesday in the governor’s conference room.
Photo by Emmanuel T. Erediano
GOVERNOR David M. Apatang on Tuesday approved House Bill 24-50, authorizing the financially distressed CNMI government to borrow $29 million from the Marianas Public Land Trust.
“So here we go, God bless us all,” the governor said before signing the bill. Authored by Rep. John Paul Sablan, H.B. 24-50 was unanimously passed by the Senate last week and is now Public Law 24-13.
The governor thanked members of the Senate and the House of Representatives for their cooperation in passing the MPLT loan bill. “It’s for all of us here in the Commonwealth, especially the retirees and the Public School System, the students,” he said.
He emphasized the bill’s importance, adding, “Thank you for your hard work and let’s continue to work together for the Commonwealth.”
The new law authorizes MPLT to withdraw and retain the government’s annual distributable income starting fiscal year 2026 for repayment and security of the loan.
P.L. 24-13 also includes a provision to defend, hold harmless, and indemnify MPLT trustees individually and collectively, as requested by the trustees. However, it does not give them discretion to enter into margin transactions with a brokerage firm to collateralize securities. The trustees have said an authorized margin account would enable MPLT to fund the $29 million loan without substantially liquidating the principal investment and still retain sufficient resources to meet debt service and investment obligations.
Asked about the MPLT request for margin account authorization, the governor said his administration and the Legislature are working closely with the public land trust. Once the revised version of the FY 2026 budget is enacted, “we will still have time to work with MPLT,” he said, adding that he will sign the budget as amended when it reaches his desk.
Critical time
Senate Floor Leader Donald Manglona said the signing of H.B. 24-50 into law marks an important step in addressing the Settlement Fund’s minimum annual payment, ensuring the obligation is met while freeing resources to help offset the current shortfall.
“This measure comes at a critical time, as the governor has announced revised revenue projections that reduce overall CNMI revenues by $20 million,” Manglona said.
With the new law in place, the Rota senator said the Legislature can now work on the FY 2026 budget “with a clearer understanding of how to allocate the available resources while keeping in mind the revised projected revenue.”
“The Senate is committed to working with the House on a product that will be agreed upon in order to avoid any delay in getting the budget to the governor for review and to prevent a partial shutdown,” he added.
