House Minority Leader Oscar M. Babauta, Covenant-Saipan and Rep. Edwin Aldan, Covenant-Tinian, voted against the override of House Bill 16-4 also known as the “CNMI Government and Public Deposit Safety Act of 2008.”
Babauta said he does not want to support the override “because there was no official comment from the banking association and they are the ones affected by this legislation.”
Rep. Stanley T. Torres, R-Saipan, did not vote while his fellow Saipan Republican Reps. Ray Yumul and Joseph N. Camacho abstained.
Saipan Republican Reps. David M. Apatang, Ed T. Salas and Heinz S. Hofschneider were excused.
Yumul said he worries about the safety of public funds deposited in non-federally insured banks or financial institutions.
Sponsored by Vice Speaker Joseph Deleon Guerrero, H.B. 16-4 seeks to set new standards in depositing government funds to ensure their safety.
Under his bill, public funds should be deposited in federally insured banks or financial institutions.
Moreover, public funds valued in excess of the maximum federal insurance should have bank collateral in the form of Treasury bonds or bills to cover the excess amount.
Provisions were also put in place requiring the finance secretary to select banks with good standing to be the only depository of public funds.
But Lt. Gov. Timothy P. Villagomez vetoed the bill early last month, in his capacity as acting governor, saying the measure is too restrictive.
“This would likely result in less investment and less job creation for our local economy, at a critical juncture in our economic development. For these reasons, I am returning H.B. 16-4 to your offices, disapproved,” he said in his veto message to the Legislature.
