Embedded Files
11/07/2025 - The House of Representatives has passed a bill that would conditionally authorize the Marianas Public Land Trust to establish a margin account solely to facilitate the $29-million loan authorized under Public Law 24-13.
In a vote of 18-1, the House approved House Bill 24-68, HD1, with the lone “no” vote coming from Rep. Vincent S. Aldan.
“The issue is bigger than it’s being let out to be. All we are doing is digging ourselves into a deeper hole. Stop being Santa Claus and start doing actual work. It’s a lot easier to ask for a loan than to actually go out and collect what is owed. It’s called get off your ass and collect and cut costs,” Aldan told Marianas Press in a social media message.
Rep. John Paul P. Sablan, the bill’s author, said Aldan had always intimated his opposition to the measure, so his dissenting vote came as no surprise.
“He has expressed his concerns, and he is not in support of the government taking a loan,” Sablan said.
Sablan added that he is confident the Senate will pass HB 24-68, HD1.
“I've spoken to the Senate president and members of the Senate, and they are okay with the proposed legislation and its amendments. Mind, these are working efforts between the administration, MPLT, and the Legislature,” he said.
Senate President Karl King-Nabors said the Senate is prepared to act on the bill when contacted by Marianas Press for comment.
“The Senate will act on the product that the House passed after we meet to discuss any concerns members might have. I appreciate the work all stakeholders have done to get us here. We hope to schedule a session date soon,” he said.
In the amended bill, the phrase “however, such borrowing involves leverage and therefore carries some considerations, heightened risk” was struck from the second paragraph of Section 1: Findings and Purpose. It also deleted the entirety of §103 under Section 2: Enactment.
Before the vote, floor leader Rep. Marissa Flores said the Legislature has been made to understand that passing the MPLT loan bill is required for the U.S. Department of the Interior to bail out the CNMI government from its current financial crisis.
“We are now being placed in a corner because we have to demonstrate that we are suffering. Now, I'm not sure, but yes, I will agree that we are suffering, but we're suffering at the hands of a much higher power. And now we are put in this position to fight amongst each other, create this conversation that if we don't help our people, we're not gonna get a handout. For the record, I did not ask for a handout, nor are people asking for a handout,” she said.
Flores added that the CNMI is suffering because “They took away our tourism. They took away our immigration.”
She then appealed to Gov. David M. Apatang to include House Speaker Edmund S. Villagomez in the next round of 902 talks.
“That was an injustice to begin with, without involving anybody from the Legislature, including our speaker. Furthermore, the next time that this happens, I hope that when we pass this, we get that handout soon—like tomorrow—and not next month, and not the following month, and not for me to demonstrate, or this House to demonstrate that we are now again in crisis mode.”
Introduced on the House floor last Oct. 24, House Bill 24-68 would allow MPLT to open a margin account with a licensed U.S. broker-dealer. The measure grants the trust narrow and temporary authority to borrow against its assets through a margin account to finance the CNMI government’s $29-million Settlement Fund loan under PL 24-13, while ensuring strict fiduciary safeguards and legislative oversight.
Under House Bill 24-68, HD1, the MPLT may establish a margin account solely to facilitate the $29-million loan—not for any other investment or trading purpose. The legislation emphasizes that the trust’s fiduciary duties of prudence, loyalty, and care under the CNMI Constitution remain fully in force.
According to the bill, trustees may pledge only investment-grade securities as collateral and only up to the cash value equivalent of $29 million. The measure specifies that such borrowing carries risk and does not automatically qualify as a “prudent” investment.
The bill also includes strict reporting requirements, mandating MPLT to submit a report to the governor and Legislature within 30 days of opening any margin account, detailing the collateral pledged, borrowing terms, and safeguards to protect the trust’s assets. Quarterly updates must follow until the account is closed.
During public comments, Office of Management and Budget special assistant Virginia Villagomez and Finance Secretary Tracy Norita said it was imperative that the House pass HB 24-68 with amendments.
Villagomez said the Apatang administration submitted a revised FY 2026 budget after revenue projections fell from $179 million to $158 million—a 12.1% drop. She explained that two budget scenarios were prepared: one assuming approval of the MPLT pension loan, and another if it is not approved.
She urged lawmakers to pass the amendment to House Bill 24-68, tied to the first scenario, as it would secure minimum annual payments to retirees in FY 2026 and allow the redirection of residual funds to fill other fiscal gaps. Villagomez warned that without legislative action, group health and life insurance for active and retired employees could be disrupted.
Villagomez stressed that the government cannot operate under the old $179 million budget and that any delay in legislative action would jeopardize public services, urging swift passage of the budget revision.
Norita also spoke in support of the amended bill and the governor’s revised budget, emphasizing the need to authorize MPLT to establish a margin account to facilitate the $29-million pension loan. She said Section 103 of the bill must be removed because its language contradicted the margin account authorization in Section 101.
She warned that without the pension loan, the CNMI risks losing federal funding support from the U.S. Office of Insular Affairs, since the loan is key to the government’s fiscal reform plan. Norita added that without the appropriation for retirees, health insurance coverage for about 7,000 people could be suspended or terminated by the second quarter, as retirees currently lack employer-share funding for premiums, delaying open enrollment.
Report by Mark Rabago
Report abuse