House Bill 17-78, which Rep. Ray N. Yumul, R-Saipan, and two others sponsored, is now Public Law 17-7 after it was signed yesterday afternoon by Gov. Benigno R. Fitial.
In an interview, Yumul said the $5.7 million that MPLT will transfer is not a loan but rather interest income that is supposed to be remitted to the general fund in the future, but is now being released in advance due to the cash-strapped government’s dire situation.
Of the amount, $1.7 million was specified for the Commonwealth Utilities Corp.’s use. This is the balance of the $3.4 million that was earmarked for CUC in 2008 to rent Aggreko’s generators, among other purposes.
Yumul said the $4 million could be tapped for CUC’s fuel and even payroll because the language of the bill was silent on where it should be used.
“There’s no restriction on the use of the $4 million. It was unspecified. It could also be used for payroll,” he told the Variety.
The bill was revised three times in both houses of the Legislature and the Senate substitute version was passed during back-to-back sessions last Tuesday.
The substitute version removed appropriations for the Commonwealth Health Center.
A clause was also inserted, barring the government from juggling excess funds every fiscal year for purposes other than retiring the deficit.
Prior to the bill’s revision, MPLT Chairman Phillip Mendiola-Long cautioned lawmakers to be very careful on how they word their legislation as the trustees didn’t want to violate their fiduciary duties.
“MPLT would like to emphasize the importance of the authorization by the Legislature to ‘withhold’ future distributions to the general fund. Without this language, the Marianas Public Land Trust will not be able to advance funds to our beneficiary. We strongly feel that if the above recommendations are incorporated into the final bill, MPLT can proceed forward expeditiously in processing the advance to our beneficiary,” part of Mendiola-Long’s letter to the Legislature states.
Yumul is the same lawmaker who sponsored House Bill 17-15 now known as Public Law 17-6 which authorizes the governor to reprogram up to $10 million for three payrolls beginning on June 18.
The government must raise $5.13 million every two weeks for payroll.
Revenue-earning autonomous agencies like the Commonwealth Development Authority, CUC, etc. provide for their own payroll.
