‘Three bills on QC program paint a picture of instability’

The Saipan Chamber of Commerce says the introduction of three bills that would substantially impact the qualifying certificate program in differing ways does not paint a picture of regulatory stability for potential or existing investors.

The Chamber, in comments on House Bill 16-210, which restructures the QC program by repealing and reenacting the Investment Incentive Act, said it generally favors legislation that seeks to stimulate any aspect of the local economy.

“We are concerned, however, that there are three pending bills that would substantially impact the qualifying certificate program in differing ways, which were introduced within an approximately three-month span,” Chamber president Jim Arenovski said in a Feb. 26 letter to House Commerce and Tourism Committee chair Rep. Joseph C. Reyes.

The Chamber, the largest business group in the CNMI, previously commented on H.B. 16-172 and H.B. 16-177, which would supplant or impose a temporary moratorium on the QC program, respectively.

Arenovski said legal and regulatory stability is an important consideration for any business.

“The introduction of three disparate bills concerning the investment incentive program, along with a number of bills that would…substantially impact the Commonwealth’s tax structure and business fee structure, does not paint a picture of stability for potential or existing investors,” he said.

The Chamber president reiterated the group’s support for the establishment of a workgroup as proposed by House Bill 16-177 to bring together representatives of the public and private sectors to conduct a cost-benefit analysis of the QC program, as well as to formulate a plan for the future of the program.

“In this manner, one unified and comprehensive recommendation can be placed before the Legislature for consideration,” said Arenovski.

But as noted in the Chamber’s comment on H.B. 16-177 in December, it does not believe a temporary moratorium on the issuance, extension, renewal and modification of qualifying certificates is necessary during the time that such a group would engage in its work.

“We urge you and the authors of other legislation that would impact the Qualifying Certificate program to carefully consider this recommendation,” Arenovski told Reyes.

The program grants tax incentives to investors to put up new investments in the CNMI or assist existing investors to expand their operations.