Senate panel wants to extend LOC to Rota and Tinian EDA projects
The Senate Fiscal Affairs Committee wants to extend the $15-million line of credit with the Marianas Public Land Trust to Rota and Tinian for existing or future U.S. Economic Development Administration’s Capital Improvement Projects and 702 CIP annual projects within the seven-year term of the LOC.
The Senate Fiscal Affairs Committee has completed its report regarding House Bill 23-95, House Substitute 1, that repeals and re-enacts a newly enacted public law that authorizes the Commonwealth government to negotiate a revolving LOC with the MPLT.
After holding public hearings on House Bill 23-95, HS1, the committee, chaired by Sen. Donald M. Manglona (Ind-Rota), recommends the full Senate pass the legislation with amendments in the form of Senate Substitute 1. One of the committee report’s recommendations is to insert additional language on the bill to include extending the LOC to Rota and Tinian.
The committee report will be discussed during the full Senate hearing today, Friday.
Among other amendments that the committee recommends is a technical correction by inserting language to extend the $15-million LOC agreement with the respective municipalities of Rota and Tinian and the autonomous agencies of the CNMI.
The committee inserted amendments in regards to the advance payments of projects approved under the U.S. EDA, to include existing or future EDA projects for Rota and Tinian during the seven-year term of the LOC.
The committee approved the statutory provision recommended by the MPLT to reflect the House’s intent to grant MPLT the authority to withhold its annual interest income distribution to the Commonwealth government each fiscal year as security payment for the $15-million LOC until such time that the credit is paid in full.
The committee approved the statutory provision recommended by MPLT to authorize autonomous agencies to enter into the LOC agreement.
Additional language was inserted to clarify payment to the LOC from reimbursement received by the U.S. Office of Insular Affairs for 702 CIP project advances funded by the LOC.
In line with the negotiations among the CNMI government, EDA, and the MPLT, the enactment of the committee’s proposed version of the bill, House Bill 23-95, House Substitute 1, Senate Substitute 1, would not result in additional expenses in regards to the approved EDA projects, the committee said.
The committee said its version of the bill provides that should advance payments be required for future projects for Rota and Tinian or 702 CIP projects, the compounded daily interest rate of 5.5% reflected in the terms of the LOC be applied to such projects before the drawdown of any funds from the MPLT line of credit.
Marianas Public Land Trust office on Capital Hill.
