House committee calls for vote on Article 12 initiative

A legislative committee says a vote should be done on the floor of the House of the Representatives on whether to extend the allowable leasehold interest for private lands in the Commonwealth from 55 years to 75 years.

The House Committee on Natural Resources has reported out the legislative initiative without taking a stand on it. Instead, the committee outlined the arguments for and against the proposal, suggested an amendment, and urged the entire House to make the decision.

The amended version incorporates a Senate-approved measure, which would lower the indigenous representation required from corporations wishing to buy land in the Commonwealth. Under this proposal, a corporation would be able to own land even if it is only 51 percent Northern Marianas descent.

Aside from setting a 55-year limit on leasehold interest for private lands, the Constitution restricts land ownership to persons of Northern Marianas descent. In order for a corporation to own land, 100 percent of its directors must be of Northern Marianas descent, and 100 percent of its voting shares must be NMD-owned.

In its report, the committee said a majority of the comments and testimonies it had received were in favor of passing the legislative initiative. Yet, the committee said the full membership of the House should decide upon the initiative.

Still, the committee report implied support for getting the initiative on the ballot. “[L]and is vital resource, both traditionally and culturally for our people and economically for development. The difficult task of protecting the Commonwealth, while trying to encourage economic development in order to improve the lives of our people, is a conundrum that may very well be resolved ultimately by the people,” the report stated.

Proponents of the initiative say a change in the CNMI’s land alienation policy change is vital to economic recovery. They contend that longer lease terms will make the Commonwealth more attractive to foreign investors.

Opponents say that current land ownership rules must remain in place in order to protect the interests of the indigenous people.

A legislative initiative requires a two-thirds vote in each chamber of the Legislature. Once it clears both the Senate and House of Representatives, the initiative will be placed on the ballot for the voters’ ratification.