HOUSE AGENDA

The first day of the second regular session of the 12th House of Representatives took off with a slew of bills passed unanimously by the 18-member chamber, including significant economic legislation.

At least eight measures were cleared during the two-hour session yesterday, including a proposed tax incentive program for tourism and high technology businesses.

After being pushed to the back burner for the last two years, a comprehensive bill reforming existing banking regulations was finally passed in order to protect both local financial institutions and their depositors.

HB 12-152 also seeks to widen the scope of ownership of Commonwealth banks and simplify the administrative procedures associated with the licensing and operation of banks, according to a report prepared by the House Commerce and Tourism Committee.

It provides for a balanced, modern regulatory scheme that protects depositors while encouraging competition in the banking industry, it said.

In order not to harm small banks, the regulations accommodate their needs with the safeguards in place for their customers, the committee disclosed.

Although similar to the initial proposal in the previous Legislature, HB 12-152 incorporated concerns raised by the Department of Commerce, the Saipan Chamber of Commerce and the local banks during the months of committee review.

It now heads to the Senate for action.
Meanwhile, the lower house also set in motion the proposed creation of Pacific Island Development Bank in the CNMI in line with a regional agreement to develop a central development bank under the Association of Pacific Island Legislatures.

HB 12-159, now up for Senate votes, will allow the bank to operate as a non-profit corporation to provide additional resources to expand and economic activities in the CNMI as well as to strengthen its financial capacity.

Lawmakers from Micronesian islands believed that the development bank, which was proposed as early as 1987, would help hasten economic and social development and foster cooperation.

Other legislation acted during yesterday’s session included a proposal to grant Commonwealth Ports Authority officers a law enforcement officer status authorized to carry firearms and entitled to similar benefits; an update of the animal quarantine regulations; and an amendment to court procedures involving sworn documents.

All House-initiated bills, they will be up for consideration in the Senate.