Pension obligation bond initiative, 13 others clear House panels

A legislative initiative that could pave the way for floating $200 million to $300 million in bonds to pay the government’s debt with the NMI Retirement Fund is now ready for House action as early as Thursday.

The House adopted yesterday afternoon the Ways and Means Committee report recommending passage of House Legislative Initiative 17-5. The initiative has been automatically placed on bill calendar for action.

If and when this initiative passes the House and Senate, it will again be placed on the Nov. 6 ballot for voter ratification. A similar initiative was rejected when it was placed on the ballot in 2010, but its proponents said that that was a result of lack of public education.

House floor leader George Camacho (Ind-Saipan) said the next House session could be on Thursday, wherein HLI 17-5 could be acted on.

House minority leader Joseph Deleon Guerrero (R-Saipan), who introduced HLI 17-5 in April 2011, said he will lobby for the initiative’s passage on Thursday.

“With the standing committee report recommending its passage getting unanimous approval, I hope this initiative will pass during the next session,” Deleon Guerrero said.

He said the focus now is to have the initiative pass the House and Senate, and have it placed on the ballot. The initiative seeks to amend the Constitution to lift restrictions on public borrowing for government operations.

“The other matters such as the amount to be floated are secondary because that will depend on our credit rating, the interest rate and our ability to repay, among other things,” he said.

The court gave the CNMI government up to June 15 to come up with a plan to prolong the NMI Retirement Fund’s lifespan.

The committee report on the pension obligation initiative was one of the 13 standing committee reports and one conference committee report that the House adopted yesterday afternoon.

The other committee reports adopted include those recommending passage of a House bill that would restrict use of cell phones while driving vehicles, a House bill that would remove mandatory benefits for foreign workers, a Senate bill that requires publication of notice of opportunity to lease public land before or after the termination of public land leases requiring legislative approval, and a House bill requiring private employers to verify the legal work status of CNMI employees.

House members also adopted a conference committee report on a House bill that strengthens penalties for minors consuming alcohol and impose stiffer fines for persons or establishments providing and selling alcohol to minors.

Members also adopted three House resolutions, including Rep. Teresita Santos’ (Ind-Rota) House Resolution 17-97 that congratulates Tan Holdings Corp. on its 40th anniversary “and for its remarkable commitment and contributions” to the CNMI.

Also adopted was House Speaker Eli Cabrera’s (R-Saipan) HR 17-98, recognizing the achievements of Dr. Tan Siu Lin in business and philanthropy and his contributions to the CNMI.