Inos inks 2 obligation bond laws, vetoes DPL fee waiver bill

Gov. Eloy S. Inos signed into law on Friday and Wednesday two related bills allowing the issuance of bonds other than general obligation bonds. The governor also signed on Thursday a local measure appropriating $40,000 in poker license fees for Rota patients and other programs, but vetoed on Friday a House bill allowing a waiver of public land fees for entities constructing and maintaining certain driveways and sidewalks structures.

The governor also appointed two individuals to serve on the Commonwealth Zoning Board.
Inos signed Friday House Bill 18-171, Senate Draft 1 into Public Law 18-45, amending P.L. 18-12 to provide for the issuance of bonds other than general obligation bonds and to acknowledge the existence of an actuarial determination of the CNMI government’s unfunded liability to the Retirement Fund. The bill was introduced by Rep. Mario Taitano (Ind-Saipan).

This came two days after the governor signed another of Taitano’s bill, H.B. 18-170, into Public Law 18-44, amending the Commonwealth Development Authority Act of 1984 to allow it to issue bonds other than general obligation bonds.

The measure also allows the use of gross receipt taxes as pledge to the debt service.
This comes at a time when the CNMI is planning to float a pension obligation bond. Although the law allows CDA to float up to $300 million, the government wants to keep it within the $60 million to $120 million range.

The government has been trying to meet its pension obligations such as the annual payment to the settlement fund, the restoration of the 25-percent cut in pension, return of the Retirement Fund contribution interest, and health and life insurance premium payment.

On Thursday, the governor also signed Rep. Teresita Santos’ (R-Rota) House Local Bill 18-44, S1 into Rota Local Law 18-11, appropriating $40,000 in poker license fees for Rota patients and four other programs.

Of the total appropriated amount, $24,250 will be used for the monthly subsistence allowance of Rota patients undergoing dialysis treatment and with terminal illness, outside Rota.

A total of $1,500 will be for the Rota Municipal Scholarship, while $12,250 will be for the Rota Mayor’s Office to cover airfare, ground transportation, and associated costs for Rota participants in the 33rd Annual Flame Tree Arts Festival on Saipan from April 25 to 27.

The Pacific Islands Bilingual/Bicultural Association event on Rota from June 22 to 26 will get $1,000, while another $1,000 will be for the Rotary Club of Saipan to assist in the airfare costs of Rota students participating in the Annual Rock to Read competition on Saipan on April 12.

Vetoed bill
Inos vetoed on Friday Rep. Tony Sablan’s (Ind-Saipan) House Bill 18-120, which seeks to allow the Department of Public Lands to grant revocable consent without fees to individuals, businesses, or organizations to construct and maintain certain structures on public property such as driveways and sidewalks.

The governor said he vetoed the bill because it is based on “at least partially inaccurate information, omits a critical definition, misconstrues DPL operating procedures, and does not contain standards to ensure that structures built on public land actually beautify the Commonwealth.”

“While I absolutely agree that beautifying the Commonwealth will have a positive effect on tourism, the bill needs refining,” Inos told House Speaker Joseph Deleon Guerrero (Ind-Saipan) and Senate President Ralph Torres (R-Saipan) in his veto message.

The governor described as “inaccurate” the bill’s assertion that “a majority of the private homes, businesses, and organizations surrounded by public land cannot maintain and beautify the surrounding property in which they occupy without having to pay fees to [DPL].”

He said DPL does not charge any fee to private individuals who wish to maintain and/or beautify the public land surrounding their residences. He said these individuals may do so without paying any fee.

With respect to businesses, DPL does charge $100 per year for such permits, plus a $40 renewal fee, the governor said.

“This fee to businesses seems minimal, however, and helps DPL cover its operating expenses in issuing the permits. Again, private individuals are not charged any fee for maintaining or beautifying the public land surrounding their residences,” the governor added.

He pointed out that the bill does not define the term “certain structures,” which could refer to any number of things including houses, garages, tin fences, and water tanks.

Inos also said that DPL does not give prior consent to persons to build structures on public land. When businesses or individuals build structures on public land illegally, however, then there is an encroachment issue.

Finally, he said, although the bill intends to encourage individuals and businesses to beautify the CNMI, there is no guarantee that allowing businesses and individuals to build structures on public land will add to the beauty of public land.

“Although the bill’s intent to beautify the Commonwealth is noble, in its current form the bill will likely lead to litigation and may not accomplish its goal. Perhaps the Legislature can work with DPL to identify the problem more specifically so that the bill can be more narrowly tailored and effective in the future,” Inos added.

Zoning Board appointees
Also on Friday, the governor re-appointed Herman P. Sablan and appointed Elizabeth Balajadia to serve on the Commonwealth Zoning Board.

The appointments are subject to the confirmation of the Saipan and Northern Islands Legislative Delegation.

If confirmed, Sablan and Balajadia will each serve a two-year term commencing on the date of their confirmation.