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House OKs bills that aim to lure more investors
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Posted on Nov 25 2004
The House of Representatives voted Wednesday to pass a bill creating an office of foreign investment assistance within the Department of Commerce and eliminating the $25,000 security deposit requirement for investors.
“I’m so grateful for this development. We need this office to make the CNMI an investment friendly location,” said House Committee on Commerce and Tourism chair Martin Ada.
The measure, House Bill 14-65, also eliminates the security deposit requirement for long-term business certificate and foreign investment certificate holders.
Ada said the creation of the foreign investment office would alleviate many of the obstacles that investors experience when they come to set up business in the CNMI. The office shall serve as the initial point-of-contact for investors planning to venture in the Commonwealth.
“Investors experience many difficulties in their attempts to venture in the CNMI. They are unaware of the permitting process and other prerequisites,” said Ada. This situation, he said, causes undue delays and hampers the CNMI’s ability to generate revenues.
Funding requirement for the office, Ada said, would be minimal as it would be self-sustaining through the fees collected.
Meanwhile, the removal of the $25,000 security deposit requirement was premised on the argument that it has impeded prospective investments “as insurance companies in the CNMI can no longer extend bonding from U.S. Treasury Listed companies.
The bill said the bonding requirement for investors in the CNMI “is a redundant condition,” particularly when labor bonding exists as a prerequisite to employment of nonresident workers.
The bill provides that prospective investors for long-term or two-year business certificates and foreign investment certificates (perpetual multiple re-entry permit) should no longer be required to post a bond or security deposit; current long-term business certificate holders should not be required to maintain a bond following the expiration of their current certificates; and current foreign investors should be refunded any paid security deposit or bond.
