MPLT, DPL warn vs depleting public lands money to help Fund, CHC

The Marianas Public Land Trust and the Department of Public Lands cautioned lawmakers yesterday against depleting DPL and MPLT resources that are currently being tapped—almost at the same time—to help prolong the Retirement Fund’s lifespan and run the Commonwealth Healthcare Corp.

Two Senate initiatives, for example, tap DPL and MPLT resources for the Fund about the same time that a House bill seeks up to $10 million from MPLT to help CHC. These are just among other measures seeking to tap MPLT and DPL money that a House Special Committee on Retirement Fund is reviewing.

MPLT board chair Alvaro Santos said that tapping MPLT resources for a host of issues is “disturbing” and would “very much hurt” MPLT, the agency that manages the money generated from leases of public lands.

“This is something that is disturbing to us because both of them are asking from the same ‘pot’ and for the payment of the loans to both of them is also coming again from the pot…They will involve the same MPLT money to finance and the same MPLT money also to pay for them. We cannot do both,” Santos told Saipan Tribune.

Santos pointed out that the intention of helping the Fund and CHC may be noble but this could be at the expense of land trust money that should also be protected.

As of yesterday, DPL and MPLT officials were hesitant to support Senate Legislative Initiatives 17-13 and 17-14 and House Bill 17-258 as currently drafted.

Senate President Paul Manglona’s (Ind-Rota) SLI 17-13, SS1, SD1 seeks to amend Article 11 of the NMI Constitution to transfer the disposition and management decision of public land golf course leases to the Fund.

It allows the Fund to lease public land golf courses for up to 99 years—instead of only up to 55 years—for $50 million or for an amount determined by two certified independent appraisals, whichever is greater.

While the department would like to help the Fund, DPL Secretary Oscar M. Babauta said that SLI 17-13 would “limit, impair, and impede” DPL’s programs and activities such as homestead developments on Rota and Tinian.

He said for homestead power system on Rota and Tinian alone, DPL would need some $2.6 million.

“It’s a choice that has to be made by policy makers on Capital Hill,” Babauta said.

If SLI 17-13 passes and is approved by voters, DPL will hold fee simple title to all existing public land golf course leases. These are the Coral Ocean Point Golf Course, Laolao Bay Golf Resort, Rota Resort Golf Course, Marianas Country Club Golf Course, and all other golf courses to which a current land lease is in effect with the CNMI government.

Babauta, a former House speaker, said DPL collects hundreds of thousands of dollars from these golf courses—money that they use for homesteads, among other things.

Also discussed during yesterday’s meeting was SLI 17-14, SD1, which seeks to amend Article 11 of the NMI Constitution to provide for the transfer of funds from MPLT to the Fund.

This involves the use of the interest on the amount received for the lease of property at Tanapag Harbor for the development and maintenance of a memorial park. This proposed constitutional amendment shall apply beginning on the fiscal year after the loan to the Commonwealth Utilities Corp. is paid in full.

Rep. Ray Basa’s (Cov-Saipan) HB 17-258 authorizes MPLT to retain net annual distributable interest income for fiscal years 2014 to 2020 to offset a $10 million advance to the general fund, and that amount will be made available to CHC.

MPLT’s Santos said the agency is just waiting which of these initiatives or bills would be acted on first by the Senate and House.

“We will, of course, recognize the importance of it. We do our due diligence, make sure the terms and conditions are met. But both [initiatives], we see merits, very worthwhile cases for the Retirement Fund and healthcare,” he said, adding that MPLT’s portfolio is now at $71 million.

Rep. Teresita Santos (Ind-Rota), chairperson of the House Special Committee on the Retirement Fund, has asked DPL and MPLT to submit written testimonies on the three pieces of legislation, as well as recommendations on how these measures could be improved without hurting DPL and MPLT while achieving their goals of helping the Fund and CHC.

Santos’ committee met yesterday morning with DPL and MPLT officials on the two Senate initiatives but during the course of the meeting, agency officials also brought up their concern with other bills that also tap into public lands money.

The committee will meet again this morning with other agencies to discuss HLI 17-15, SD1 as well as HB 17-226.

This initiative seeks to amend Section 9(a) of Article 3 of the NMI Constitution to set aside 25 percent of revenue to pay the government’s employer contribution to the Fund.

The Senate-amended HB 17-226, meanwhile, allows active members to “roll over” their contributions to the defined contribution plan without the need to resign from government and not “withdraw” their contribution from the Fund as the original House bill had intended.