Fitial signs dormant account bill into law

Gov. Benigno R. Fitial signed into law a revenue-generating bill allowing the government to have access to dormant and inactive bank accounts and unclaimed funds for the account of the depositor.

House Bill 17-139, House Draft 2, or The Escheat Act of 2011, is now Public Law 17-69. Fitial signed the bill on Monday, but copies of the new law were released only yesterday.

In the CNMI, the amount of time of inactivity before a bank can declare an account as dormant/inactive varies from one to two years or more.

Rep. Ray Yumul (R-Saipan), author of the bill, said banks have historically charged dormant/inactive fees ranging from $15 to $20 a month.

“These bank charges on dormant accounts can chip away at savings account and balances quickly and over time may cause the account to reach a balance of zero. Certain states and territories such as Connecticut and American Samoa have put forward legislation to prevent banking institution from raiding savings accounts in an effort to protect the account holder from losing their hard-earned funds,” Yumul said in his bill.

Commerce Secretary Sixto K. Igisomar earlier said this bill, once signed into law, will better provide transparency and services to consumers and respond to their needs in “preventing banking institutions from raiding savings accounts in an effort to protect the account holder from losing their hard-earned funds.”

Igisomar had said Commerce will immediately work with the Department of Finance and the Office of the Attorney General to expedite the promulgation of regulations.

$20K for Rota programs

Fitial also signed yesterday a local bill appropriating $20,000 in poker fees for Rota patients and programs.

Rep. Teresita Santos’s (Ind-Rota) House Local Bill 17-67, Substitute 1 is now Rota Local Law 17-18.

The $20,000 collected from poker and pachinko slot machines will be appropriated for the following: $7,200 for eight dialysis and terminally ill patients at $450 each for December 2011 and January 2012; $6,600 for 11 dialysis and terminally ill patients at $300 each for December 2011 and January 2012; $675 to defray the medical expenses for the late Milagro H. Manglona, a terminally ill patient until his death; and $555 to defray the medical costs for the late Leo Taisacan, also a terminally ill patient until his death.

The rest will also go to the following: $2,000 for the Rota Municipal Scholarship Foundation; $2,000 for the retroactive pay of employees; $570 for the Rota Liaiso Office’s fuel; and $400 for Rota Little League for supplies and equipment.