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House passes reserve fund measure
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Posted on May 08 2018
The House of Representatives unanimously passed in late April a measure seeking to set up a reserve fund for emergencies.
The House passed with a vote of 18-0 a substitute of House Speaker Rafael Demapan’s (R-Saipan) House Bill 20-100, which proposes that the first $22 million deposited into the Casino Gross Revenue Tax at the beginning of each calendar year is earmarked to “cover or supplement” the payment of 25 percent of class members’ full benefits and bonuses.
H.B. 20-100 sets up a sub-account within the Casino Gross Revenue Tax designated as the reserve fund. The bill authorizes the Finance secretary to set aside 5 percent of the CGRT in the sub-account for investment.
The bill does not allow the funds to be expended until fiscal year 2028 or until the CNMI governor declares an emergency and receives the blessing of at least three-fourth of the Legislature. Until that time or fiscal year 2028 comes, the Legislature then is only allowed to appropriate the funds for economic development and diversification; infrastructure improvements; and medical and health care facilities.
Once these earmarks are satisfied, the remaining balance of the CGRT is to be recorded and reserved for the appropriation of Fuel Adjustment Charge Rate Subsidy Account for residential utility customers; the Commonwealth Healthcare Corp.; the Medical Referral Program; the payment of land compensation judgments; the Public School System; the Northern Marianas College; and the Northern Marianas Trades Institute.
