House rejects Senate version of revised $15M MPLT line of credit bill

Without much ado, the House of Representatives rejected yesterday the Senate version of a bill that repeals and re-enacts a newly enacted public law that authorizes the Commonwealth government to negotiate a $15-million revolving line of credit, or LOC, with the Marianas Public Land Trust.

Without going into a discussion, 15 House members voted “yes” and five voted “no” to a motion to reject House Bill 23-95, House Substitute 1, Senate Substitute 3.

Those who voted “no” were Reps. Roy Christopher A. Ada (R-Saipan), Thomas John Dela Cruz Manglona (R-Saipan), Julie Marie A. Ogo (Ind-Rota), and Patrick H. San Nicolas. (R-Tinian). Rep. John Paul P. Sablan (Ind-Saipan) was absent but was excused from the session.

House Speaker Edmund S. Villagomez (Ind-Saipan) soon after created a conference committee that will resolve their differences on the bill with the Senate conference committee.

Villagomez appointed Rep. Blas Jonathan T. Attao (Ind-Saipan) as chair of the House conferees, Rep. Ralph N. Yumul (Ind-Saipan) as vice chair, Rep. Marissa Renee Flores (Ind-Saipan) as a member, and Rep. Vincent S. Aldan (Ind-Saipan) as an alternate.

Senate President Edith E. DeLeon Guerrero (D-Saipan) also created yesterday a conference committee and appointed Sen. Donald M. Manglona (Ind-Rota) as chair, and Sen. Celina R. Babauta (D-Saipan) and Sen. Karl R. King-Nabors (R-Tinian) as members. Sen. Paul A. Manglona (Ind-Rota) was appointed as an alternate member.

The Senate’s version of the bill proposes to reduce the MPLT line of credit from $15 million to $13 million and authorizes a $2-million loan for Tinian and Rota, at $1 million each.

The original law, Public Law 23-12, had already been enacted last Nov. 20 and authorizes a revolving LOC in the amount of $15 million between the CNMI government and the MPLT. The funds are intended to subsidize ongoing projects that have been pre-approved by the U.S. Economic Development Administration with specific repayment terms by the CNMI government to MPLT within 30 days from the drawdown from the LOC.

The House, however, saw a need to fix the new law, prompting Villagomez to introduce House Bill 23-95, House Substitute 1, last Jan. 12. The House subsequently passed the bill on that same day.

Under Villagomez’s legislation, language was added to Public Law 23-12 stating that this bill authorizes and pledges the funds that MPLT would distribute as interest income to the general fund pursuant to Article 11, Section 6 of the Constitution as security and for repayment of the $15-million LOC with the CNMI government at an annual interest rate of 5.5%.

Villagomez’s bill also states that the Legislature agrees and consents that MPLT may withhold from its annual interest income distribution to the Commonwealth for each fiscal year as security and to guarantee payment for the $15-million LOC until that credit facility is retired and fully satisfied.

A House of Representatives conference committee will meet with the Senate conference committee to resolve their differences on the bill. The House conferees are Rep. Blas Jonathan T. Attao, Rep. Ralph N. Yumul, and Rep. Marissa Renee Flores, with Rep. Vincent S. Aldan as an alternate. The Senate conferees are Sen. Donald M. Manglona, Sen. Celina R. Babauta, and Sen. Karl R. King-Nabors, with Sen. Paul A. Manglona as an alternate.