Deliberation on new FTZ bill underway

The House Commerce and Tourism Committee has begun deliberation on a new measure creating free trade zones in the CNMI after the initial legislation was rejected by Gov. Pedro P. Tenorio due to differences on some of its key provisions.

Under the bill introduced by Rep. Diego T. Benavente in the 12th House of Representatives, amendments made by the Senate concerning use of public lands on Rota and Tinian were struck out to be consistent with the original proposal drawn up by the administration.

This is exactly the same measure passed by the previous Legislature, but was vetoed by the governor last month because of its failure to address issues surrounding the use of public lands.

According to House Floor Leader Oscar M. Babauta, the committee is reviewing the provision granting such authority to the Board of Public Lands in accordance with the CNMI Constitution.

The panel met the other day with members of the Free Trade Zone sub-committee and administration officials to try to reach an agreement on the new proposal before the House vote.

“We are trying to find ways to make it palatable by coming up with new provisions that will allow flexibility for all parties concerned,” Mr. Babauta told in an interview yesterday.

In the meantime, the committee is soliciting legal opinion of the House counsel on the measure vetoed by Mr. Tenorio. It will also seek a joint meeting with the Senate Resources and Development Committee to iron out any disagreement.

“The committee is reviewing both the governor’s veto message, the Senate amendment and the new bill,” said Mr. Babauta.

Asked whether lawmakers will override the veto, the Floor Leader said it has not been discussed, although he did not rule it out entirely.

In disapproving the bill revised by senators last year, Mr. Tenorio noted that issues regarding public lands must be addressed in order to ensure the integrity of the proposed free trade zones once established.

The Senate amendment had placed control of large tracts of land under the control of Tinian and Rota mayors in their respective areas as the bill would allow them to put the land to municipal uses or be leased for commercial purposes without any meaningful restrictions or limitations.

But the governor maintained such lands do not necessarily have to be utilized for free trade zones, raising concern that it would violate constitutional provisions granting BPL the rights to manage and dispose public lands.

He had urged the Legislature and the administration to work together in resolving the differences so that the plan to create special economic areas on each of the three islands would push through.

Envisioned as a milestone for the Tenorio administration, the grand project was broached in early 1998 amid the worsening economic difficulties confronting the Commonwealth.

It would attempt to attract foreign investors by offering a package of incentives, including tax breaks and cheap land leases, which island leaders hope would diversify the economy and provide job opportunities for local people.