FTZ faces another hitch

The proposed free trade zone is likely to get derailed again after the Senate yesterday amended the bill to insert provisions that have been rejected by Gov. Pedro P. Tenorio due to issues on public lands’ use.

Senate Floor Leader Pete P. Reyes warned the move would invite another veto from the governor as he noted that these provisions are exactly similar to those he asked to be deleted before signing it into law.

House Bill 12-11 or the Free Trade Zone Act has been in the agenda of the Tenorio administration since 1998 as part of its efforts to boost the economy and attract investments in other industries into the island.

It seeks the creation of special economic sites on Saipan, Tinian and Rota by granting tax breaks and other incentives to potential investors which will in turn shore up dwindling revenues in the Commonwealth.

Although the original bill was passed by the 11th Legislature, Mr. Tenorio nixed the proposal after the Senate included provisions that would have placed control of large tracts of land on Rota and Tinian under each municipality’s mayor.

Such amendment would allow them to put the land to municipal uses or be leased for commercial purposes without any meaningful restrictions or limitations — which would violate constitutional provisions that grant such power only to public lands officials.

According to Mr. Reyes, the amendment offered by Tinian Sen. Joaquin G. Adriano and adopted yesterday has the same implication and could again raise concerns from the governor.

During a discussion of the bill at yesterday’s session, the senator admonished Senate legal counsel Steve Woodruff for agreeing to include those provisions, who in turned said the legal advice given to the governor was “flat wrong.”

“I will prove to you that Governor Tenorio will veto this bill,” Mr. Reyes told the Senate. “This plan is long overdue and necessary. Are we going to keep delaying the process?”

Despite his warning, however, HB 12-11 was unanimously passed and now heads back to the Governor’s office for signing into law.

Last March, the House salvaged the free trade zone proposal after agreeing with the administration to pass the same bill approved in early 1999 and did not include the Senate amendment. Rep. Diego T. Benavente remains its main proponent.

A product of months of deliberation by the governor’s Subcommittee on Free Trade Zone, the plan is envisioned a centerpiece of the Tenorio administration following decline in the tourism industry since 1997.

Senate agenda

Meanwhile, the Senate also passed a host of bills during yesterday’s back-to-back session with the House. Among them were:

– HB 12-1, the budget bill which now heads to the governor for signing;

– HB 12-87, amending the CIP act to appropriate PSS funds for two proposed high schools on Saipan (governor’s action);

– HB 12-101, appropriating ambulance fees for the upkeep of the emergency vans and other related operations (governor’s action);

– HB 12-116, appropriating funds for As Matuis infrastructure project (governor’s action);

– SB 12-16, seeking reforms in the Election Act (for House vote);

– SB 12-34, prohibiting acts of domestic and family violence and establishing remedies, penalties and treatment available to perpetrators and victims (House vote);

– SB 12-42, setting out the duties and responsibilities of the Division of Public Lands director (governor’s action);

– SB 12-51, making retroactive salary of retirees in relation to retirement benefits (governor’s action);

– SB 12-61, limiting homestead program participation by any person convicted of a felony drug offense (House vote);

– and four Senate resolutions, one of which is commending Tinian Dynasty Hotel and Casino for the successful launching of the Taipei-Saipan direct service by Mandarin Air.