Bill giving equal treatment to land comp claimants OK’d

Private landowners whose properties were taken by government have won new help toward getting equal treatment in their land compensation claims.

Gov. Juan N. Babauta signed last week Public Law 14-29 amending three major provisions of P.L. 13-17, or the Land Compensation Act of 2002, as well as its amended versions—P.L. 13-25 and P.L. 13-29.

The new law removes the prioritization previously mandated for land compensation claims made by private landowners whose lands were taken for public road construction.

Rather, it states that all land compensation claims for public road construction, construction of ponding basins, wetland, and other claims involving private land acquisition should be treated equally.

“This amendment ensures that all individuals with land compensation claims are treated in a fair manner and removes any inference or appearance of favoring specific land claimants to the disadvantage of other individuals with pending land compensation claims,” Babauta said in a letter to the 14th Legislature.

P.L. 14-29 also makes adjustments to a provision of P.L. 13-25, which amended the Land Compensation Act of 2002 to include a provision determining the method for valuation of land.

P.L. 13-25 ensured that individuals with land compensation claims receive the actual value of the land at the time of the taking.

The new provision, however, establishes a specific date that the Marianas Public Lands Authority must use as the basis for determining the fair market value of the land and the amount of compensation that is due the former landowner.

“Landowners shall receive just compensation based on a fair market value of the land at the time of taking by the Commonwealth, which is the date when the Governor or other authorized government official certifies in writing the need for the acquisition of the private land,” the amended provision reads.

Babauta, however, pointed out that many such certifications were made at a time when high market values were prevailing.

“[As such, land compensation] claims…will deplete the $40-million bond issue authorized by P.L. 13-17 and may require authorization of additional bond measures or appropriations by the Legislature to ensure that all persons with land compensation claims are paid in an expeditious manner,” the governor said.

Further, the new law amends the provisions of the Land Compensation Act related to the transfer of bond proceeds to MPLA and funding of administrative costs of implementing the provisions of the 2002 law.

Under P.L. 14-29, the Commonwealth Development Authority is no longer required to transfer all the proceeds of the $40 million bond issue to MPLA for payment of land compensation claims.

This means that all of the proceeds of the $40 million bond issues should not be held in a separate account by MPLA anymore. Instead, the bonds’ proceeds should be held in trust by a CDA-appointed trustee that will secure the bond issue funds. The trustee will only release the funds for the purpose of land compensation claims and reasonable administrative costs at the request of the MPLA commissioner, with the concurrence of the MPLA board.

“This provision ensures that the funds are only utilized for their specific intended purpose and that the funds are not expended disproportionately for administrative costs and bond issuance and management issues,” Babauta said.