With Sen. Luis P. Crisostimo, Ind.-Saipan, absent, all the eight senators voted to pass House Bill 17-205, authorizing CUC to borrow $10 million from the Independence Bank of East Greenwich in Rhode Island.
The money, according to the bill, will be used to fund CUC’s obligations under federal stipulated orders and for projects on Rota and Tinian, but subject to the approval of the Commonwealth Public Utilities Commission.
Allan Fletcher, CUC deputy director, expressed support for the measure asking the senators for favorable consideration.
Fletcher said it is important to allow them to borrow the money which they will use to fund “very vital projects for our power system.”
But a “good portion” of it will be used for stipulated projects which include overhauling power plants, he said.
Fletcher told the senators that if CUC does not get the loan authorization in the next two weeks, “we will lose [the opportunity] and go back where a lot of people are waiting for U.S. loans.”
Senate President Paul A. Manglona, Ind.-Rota, said the Senate will ask CPUC to approve the loan.
H.B. 17-205 as amended by the Senate also gives the CUC executive director the power to approve the loan in the absence of the board of directors.
Fletcher told Manglona he was okay with the provision.
Sen. Juan M. Ayuyu, Ind.-Rota and chairman of the Senate Committee on Public Utilities, Transportation and Communications, also urged his colleagues to vote for the “urgent” bill that was introduced by Rep. Stanley T. Torres, Ind.-Saipan.
“I believe it is necessary for us to act on this bill. After discussions with CPUC and CUC, I was told that pretty much there will be no increase in CUC rates despite the loan,” he said.
Senate Vice President Jude U. Hofschneider, R-Tinian, recalled that during the recent discussion on the bill, there were several questions raised about the “flexibility” of CUC to borrow money.
Tinian lawmakers, according to Fletcher, also want CUC to “pay attention” to the island’s infrastructure.
He informed them of the $400,000 water reservoir rehabilitation project for Tinian that CUC is now working on.
Divers fee
The Senate amended before passing House Bill 17-75 which imposes a $1 fee per customer for services provided by dive shops operators and concessionaires.
House Floor Leader George N. Camacho, Ind.-Saipan, who authored the bill originally wanted the fees to be used solely for the promotional activities of the Marianas Visitors Authority.
The Senate amendment directs the Department of Finance to buy a decompression chamber with the fees collected.
Senators also inserted a “sunset provision” that will end the collection of the fees once the hyperbaric chamber is bought.
Hofschneider and Senate Floor Leader Pete P. Reyes, R-Saipan, said the fees should be used for the safety of the divers themselves.
The decompression or hyperbaric chamber, which costs about $500,000, is used for treating diabetic patients and diving accident victims.
Reyes said it is very important that the CNMI provides protection for tourists who come here to dive.
The CNMI has no decompression chamber so diving accident victims have to be sent to Guam.
Reyes said he is confident that tourists would not mind paying an extra $1 if it is for their own safety.
“Divers like to go to destination where they get the safety and protection they need. They want to make sure they have the means to be cured in times of need,” he said.
But Sen. Ralph DLG Torres, R-Saipan, said he is concerned that imposing another tax on tourists will hurt the businesses involved.
“We just passed a measure imposing $15 on travelers, now we are imposing another fee,” he said, adding that if the Legislature is serious about enticing tourists, “we should not be imposing too much fees on them.”
He asked Sen. Jovita M. Taimanao, Ind.-Rota, if her committee, Fiscal Affairs, has communicated with dive shop owners regarding the bill.
Taimanano said she requested for comments but her committee did not receive any. There was no communication made to dive shops, only with MVA, she added.
However, she said the revenue-generating measure has been languishing in her committee since last year.
“But if it is necessary to solicit comments, we would do so,” she added.
The reason she supports the bill, Taimanao said, is because “we just don’t have anything.”
