DPL: Bill on free trade zones is ‘unconstitutional’

Senate Bill 19-29, if enacted into law, unconstitutionally infringes on the Department of Public Lands’ authority manage and dispose public lands by transferring such authority to CNMI mayors.

The DPL was being sought for an opinion on SB 19-29, which hopes to add to the existing laws on FTZs by urging departments to identify more lands in the Northern Islands as locations for FTZs.

DPL Secretary Pedro A. Tenorio, in a letter, also recommended to the Legislature to “take a second look” at Public Law 12-20 and Public Law 18-16, both of which touches on establishing free trade zones in the CNMI.

“We believe that they (SB 19-29, PL 12-20, and PL 18-16) all do infringe,” Tenorio in a letter addressed to Sen. Sixto Igisomar (R-Saipan) who introduced SB 19-29, said.

Igisomar earlier said he has withdrawn the proposed legislation.

“I got positive feedback from the different agencies and mayors,” Igisomar said.

Igisomar explained that SB 19-29 also essentially “pressures” the DPL to assign Pagan, which is part of the Northern Islands, as an FTZ.

The FTZ bill would have also paved the way to address other concerns including the resettlement of Pagan residents as well as homesteading programs.

The core business of the FTZ on the Northern Islands would have been ecotourism since the zones are proposed to be established near the seaport and airport.

“The idea is start the development from there,” Igisomar said.

However, upon consultation with government agencies, including the DPL, Igisomar said he has withdrawn SB 19-29.

One question from the DPL is the potential leases of trade zone areas, which are public lands, Igisomar said.

The DPL has sole discretion to determine leasing negotiations for public lands not exceeding 5 hectares, according to the Constitution.

A free trade zone board is mandated to handle the negotiations which run counter to DPL’s mandate on the public land leases.

Igisomar said this is one of the reasons why he has withdrawn the bill for further review and to incorporate the DPL’s comments.

The Commonwealth Development Authority and Carolinian Affairs Office were also consulted, but Igisomar did not disclose any feedback from these agencies.

In March, Igisomar pre-filed SB 19-29 aiming to bring agencies together to set off the process of resettling Pagan.

SB 19-29 seeks to amend Public Law 18-16 on free trade zones so that the departments of Public Works, Public Lands, and Lands and Natural Resources, the Bureau of Environmental and Coastal Quality, and the Commonwealth Ports Authority can collaborate and cooperate with the Northern Islands mayor in identifying free trade zones on Pagan.